REQUEST FOR CATEGORICAL EXCLUSION INITIAL ENVIRONMENTAL EXAMINATION (IEE)

IEE Amendment #2 to Asia 15-060 for Democratic Governance Project

PROGRAM/ACTIVITY DATA

Development Objective (DO) DO1 – Democratic Governance Strengthened

Country Indonesia

Title Democratic Governance (DG) Project

Life of Project (LOP) Duration June 1, 2015 – September 30, 2022

LOP Funding $59,750,000

Current Date August 28, 2017

Prepared by: Maria Ining Nurani (DRG - USAID/Indonesia)

IEE Amendment (Y/N): Yes If ‘YES’, Number and Date of Original and Amendment IEE Original: Asia 15-060 dated June 10, 2015 (link http://gemini.info.usaid.gov/repository/pdf/43241.pdf) Amendment#1: Asia 17-049 dated April 4, 2017 (link http://gemini.info.usaid.gov/repository/pdf/50017.pdf)

ENVIRONMENTAL ACTION RECOMMENDED: (Place X where applicable) Categorical Exclusion: [X] Negative Determination with Conditions: [ ] Positive Determination: [ ] Deferral: [ ]

1. Purpose and Scope of Amendment

The purposes of this amendment are to: • Exclude the Human Rights Grant Program (HRGP) activity from the scope of IEE

Amendment#2 to Asia 15-060 as this program already completed in November 2016;• Add the component of Countering Violent Extremism (CVE) to the Government

Accountability Activity (CEGAH) and to the Citizen Rights Activity (MAJU);• Increase the Total Estimated Cost for CEGAH from $33,400,000 to $37,400,000;• Increase the Total Estimated Cost for MAJU from $10,000,000 to $13,350,000;• Increase the LOP funding of this IEE from $51,300,000 to $59,750,000;• Add People-to-People (P2P) Peacebuilding activity, new stand-alone CVE program

activities.

The scope and nature of all other activities as approved in the original IEE (Asia 15-060) and the amendment#1 (Asia 17-049) remain the same.

Asia 17-084

Summary of Findings: The IEE amendment #2 to Asia 15-060 includes four activities approved under this DG Project (Noted that Human Rights Grant Program/HRGP already excluded from the scope of this IEE). The total estimated funding for all activities is $83.75 million. Those main activities are:

• Government Accountability Flagship activity - CEGAH; • Protection of Citizen Rights activity - MAJU; • Eastern Indonesia Gender Based Violence (GBV) Prevention activity - BERSAMA; • People-to-people (P2P) Peacebuilding activity.

A Categorical Exclusion is recommended for activities under the DG Project for MAJU, CEGAH, BERSAMA, and P2P activities, which provide technical assistance and training and will not have direct or indirect impact on the natural or physical environment. Those activities are accorded a Categorical Exclusion pursuant to 22 CFR 216.2(c)(2)(i) for education, technical assistance or training programs; 22 CFR 216.2(c)(2)(iii) for analyses, studies, academic or research workshops and meeting activities; 22 CFR 216.2(c)(2)(v) for documents and information transfers; and 22 CFR 216.2(c)(2)(xiv) for studies and activities intended to build the capacity of the recipient country to engage in development planning. Update: The original IEE Asia 15-060 has been amended by Asia 17-049 which the purposes were to increase the funding level of MAJU from $7,500,000 to $10,000,000; extend the funding end date of BERSAMA from September 30, 2020 to June 30, 2021; extend the IEE LOP overall duration from January 31, 2021 to June 30, 2021; increase the LOP funding of the IEE from $48,800,000 to $51,300,000; and change the environmental action to only Categorical Exclusion. The IEE amendment#2 reflects the changes in the approved amendment of USAID/Indonesia PAD1 - Democratic Governance specifically to incorporate potential activities focused on Countering Violent Extremism (CVE) as a new key priority, not only for security sector, but for development as well. Activities to counter violent extremism will directly contribute to achieving USAID/Indonesia DO 1 Democratic Governance Strengthened by increasing the resilience of Indonesia community, civil society, and government institutions to counter violent extremism.

2. Background and Description of Activities 2.1 Background As the world’s third largest democracy country, Indonesia is a key ally whose successful democratic consolidation has regional and global implications. While Indonesia has been successful to date in the transition from authoritarian rule, the full consolidation of democracy is still a work in progress. In multiple analyses conducted by USAID, other development partners, and independent scholars, the need for Indonesia to make further progress against obstacles to democratic governance, including the guarantee of equality between men and women, has been clearly articulated. Government accountability and responsiveness, protection of citizen rights and addressing development inequalities in Eastern Indonesia – particularly gender-based violence (GBV) – have all been identified as key constraints to democratic governance and equitable development more broadly. Consequently, investment in democracy and good

governance carries the prospect of global impact by demonstrating that Indonesia can prosper and thrive as a function of its commitment to public accountability and the protection of the rights of all its citizens.

Previously, the Democratic Governance Project encompasses four mechanisms as follows: • Government accountability flagship activity - CEGAH (Contract);• Protection of Citizen Rights activity - MAJU (Cooperative Agreement);• Eastern Indonesia Gender-Based Violence Prevention activity - BERSAMA

(Cooperative Agreement);• Human Right Grant Program activity - HRGP (Fixed Amount Agreement)

completed in November 2016.As the result of FY17 budget approval process, DG is planning new CVE mechanisms called People to People Peacebuilding activity (P2P).

As discussed in DG PAD Amendment #1 that was approved on July 2017, USAID has identified the dramatic increase in agitation and violence by extremist groups in Indonesia as a significant threat to stability and development in the country. Spillover from sectarian conflict in Syria, Philippines and elsewhere, as well as the exploitation of ethnic and religious differences by political entrepreneurs, has generated tremendous pressure on the political system’s ability to mediate and mitigate conflict among strategic sectors of society.

Beginning in 2017, the Indonesian government dramatically accelerated its rhetorical, legal and operational efforts to counter the growing threat of radicalism. The creation of a presidential unit in support of Pancasila, as well as repeated public exhortations by President Jokowi and leaders of mainstream religious groups in support of tolerance and diversity, attest to this “wake up call” for the government of Indonesia (GOI). The emerging of GOI imperative to counter the rise of radicalization dovetails with USG’s policy focus on CVE around the world.

Activities to counter violent extremism will directly contribute to achieving USAID/Indonesia’s DO1 Democratic Governance Strengthened by increasing the resiliency of Indonesian community, civil, society, government institutions to combat direct threats to Indonesia’s democracy.

The scope and nature of all other activities as approved in the original IEE (Asia 15-060) and the amendment#1 (Asia 17-049) remain the same. Therefore, this IEE amendment#2 only describes in detail the additional activities that are not covered by existing environmental compliance documents and thus are covered by this IEE.

2.2 Activity Description

2.2.1 Government Accountability Flagship Activity - CEGAH

USAID/Indonesia implements a contract based accountability activity that includes several sub sectors on Justice sector capacity building; fostering government accountability exist at the national, provincial and district levels within the GOI; and fostering more active and sustainable reformers.

Sub-Activity 2.2.1.1: The justice sector consists of judges, prosecutors, police and lawyers; although USAID’s only formal justice sector partner under this project is the Supreme Court.

Coordination with other justice sector actors, including the AGO, universities and CSOs, is also important to the success of this project. The justice sector in Indonesia still has many internal problems, but other development partners are working to address those problems. Despite these internal problems, USAID’s current and past activities demonstrate that there are reformists within the justice sector who are working both to clean up the sector itself and re-energize it to contribute to effective law enforcement across the board. Under this project, USAID focuses its efforts to increase the effectiveness of the court system to prosecute and adjudicate corruption in other sectors, through technical assistance and training. Sub-Activity 2.2.1.2: Numerous agencies focused on fostering government accountability exist at the national, provincial and district levels within the GOI. The Corruption Eradication Committee (Komisi Pemberantasan Korupsi/KPK) is the most well-known and popular of these agencies due to its vigorous prosecution of high-profile cases, but it can only handle a limited number of cases every year and it is an ad-hoc body established only because other law enforcement institutions have not performed well enough. The GOI’s supreme audit institution (Badan Pemeriksa Keuangan/BPK), established by the 1945 Constitution to conduct financial and performance audits and report the results to the national legislature (DPR). The Ombudsman and Central Information Commissioner (Komisi Informasi Pusat/KIP), which implements Indonesia’s freedom of information law, also contribute to holding government agencies accountable for their actions. Internal controls within the executive branch are the function of ministry Inspectorate Generals (IGs), the State Finance and Development Surveillance Committee (Badan Pengawasan Keuangan dan Pembangunan/BPKP) at the national and provincial levels, and Regional Oversight Agencies (Badan Pengawas Daerah/Bawasda) at the provincial and district levels. In order to complement the activities of other Mission technical offices, assistance to IGs emphasizes ministries critical to the work of those offices, such as the Ministry of Education and Culture, the Ministry of Health, the Ministry of Forestry, and the Ministry of Fisheries and Maritime Affairs. Under this project, USAID builds on its current and past works in these areas to continue to strengthen the ability of these GOI accountability agencies to prevent corruption, through technical assistance and training. The activities look for targets of opportunity, working with reformers in whichever of these agencies demonstrate the greatest commitment to principles of clean governance. Sub-Activity 2.2.1.3: It is not enough to work with reformers within government, who often are hindered at every step by their peers working to maintain current corrupt systems and practices. These reformers require societal support to achieve their goals and demonstrate to their leaders that cleaning up government will be rewarded by a grateful public. Under this project, USAID will continue current efforts to foster more active and sustainable CSOs which are better able to research and advocate regarding corruption issues, through technical assistance and training. Recognizing the linkage between corruption and CVE, with additional funds from FY 2017 CEGAH is planning to implement the following CVE-related activities:

• Engagement with the Presidential Unit (KSP) and Corruption Eradication Commission (KPK) to institutionalize monitoring of corruption-extremism links into new National Anti-Corruption Strategy (STRANAS);

• Extension of Direktori Putusan (Judgement Database) and data warehouse for judges, prosecutor and police to integrate terrorism, radicalism and corruption cases. This will address a serious knowledge management gap with GOI, which often results in law enforcement and judges not being aware of possible connection between corruption and terrorism activities;

• Work with moderate Islamic organizations to promote public campaign in support ofaccountability and greater transparency in funding political and religious organizations;

• Strengthening the ability of financial oversight bodies (Indonesian Financial TransactionReports and Analysis Center/PPATK, Indonesian Financial Services Authority/OJK andKPK) to track illegal financial flows;

• Longer term, more focused research into corruption in key state institutions as an entry-point for Violent Extremist Organizations (VEO): police corruption, port management,immigration controls;

• Assistance to law enforcement to analyze patterns of terrorist financing from courtcases.

2.2.2 Citizen Rights Activity – MAJU

USAID/Indonesia implements two mechanisms under this activity: MAJU (still ongoing) and HRGP (completed in November 2016). With funding from DCHA/DG Washington, the HRGP specifically addressed Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) rights. Specifically, the agreement looked at collecting and analyzing data of human rights violations against LGBTI persons for evidence-based advocacy and strengthening access to legal aid for LGBTI persons. This program served as a pilot activity to inform the larger Citizens Rights Cooperative Agreement - MAJU (eMpowering Access to JUstice) starting after the HRGP mechanism. All activities outlined in the HRGP fell within the outlined activities of the larger citizen rights project, and HRGP grant has been weaved into MAJU. MAJU addresses access to justice for poor and marginalized citizens; data gathering and collection of human rights violations to inform evidence-based decision-making; and improving the CSO operating environment. Since HRGP already closed in November 2016, then this activity is excluded from the scope of this IEE amendment#2 to Asia 15-060.

Sub-Activity 2.2.2.1: When the state stands idly by while citizens or other private actors carry out rights violations, and even more so when the state is a party to rights violations, victims require support from non-state actors to remedy those violations. A key type of such non-state support is provided by legal aid entities, which can help victims obtain remedy through the judicial system. Under this project, the intended results and activities on the demand side to provide Technical assistance, training, IT support, analyses, studies, workshops, meetings, documents and/or information transfers to strengthen technical capacity of CSOs and NGOs in target provinces to protect the rights of religious and ethnic minorities, indigenous people, women and LGBT communities. This includes technical assistance and training to increase their technical capacity and enable them to become accredited by the National Legal Development Agency (BPHN) as legal aid providers (as of September 2010 there are 310 accredited legal aid providers and over 500 requests). Due to the legal complexity surrounding those rights, at minimum technical capacity will have to be increased in the following areas: a) civil and criminal litigation (substantive and procedural law); b) land rights; and c) natural resources management/environmental law. Capacity-building also includes developing affordable and accessible mobile internet/sms-based applications and solutions for interaction between the community and legal aid providers in target provinces, and between those legal aid providers’ regional and central offices, with a sustainable training mechanism. Finally, USAID also works to increase the capacity of human rights centers at key provincial universities to furnish training services to legal aid providers.

Sub-Activity 2.2.2.2: Ultimately it is the responsibility of the state to protect citizen rights. While many state institutions are not acting to protect rights or prosecute the violation of rights in Indonesia, there are champions of reform within the government. Strengthening their ability to

act is critical to protecting citizen rights. Private companies can also violate human rights, and thus educating them on this subject can help reduce violations. Sub-Activity 2.2.2.3: (Cooperative agreement only, not HRGP) In the benchmark Freedom House's “Freedom in the World” ratings for 2014, Indonesia’s status was downgraded from “free” to “partly free,” solely due to backsliding in a single indicator regarding associational and organizational rights. This was due to the government’s passage in 2013 of the Law on Mass Organizations, which has been widely criticized for burdening CSOs with unnecessary and restrictive registration requirements. In addition, CSOs in Indonesia lack sustainability not only due to their internal organizational weaknesses but also due to other flaws in the enabling environment. Under this project, USAID will also support activities to strengthen the enabling environment for CSOs. With additional funds from FY17, MAJU will implement the following CVE-related activities:

• Provincial level analysis of radicalization trends -- addresses a lack of information at the sub-national level on CVE issues;

• Strengthening the ability of the Indonesian Network of Clinical Legal Education (INCLE), which currently includes seven Indonesian law schools, to deliver counter narrative and messaging;

• Support Nahdlatul Ulama (NU) and Muhammadiyah youth wing with anti-extremist activities in high risk areas, including providing youth vulnerable to radicalization “off-ramping” information and support to increase the pull back into moderate, mainstream Islamic organizations.

2.2.3 Eastern Indonesia Eastern Indonesia Gender-Based Violence (GBV) and Community-Based Participation Grants Activity – BERSAMA The BERSAMA project is implemented in the four eastern provinces of: Papua, West Papua, Maluku and North Maluku, with a predominate focus on Papua and West Papua. Activities provide technical assistance and support to local non-governmental organizations (NGOs) and civil society organizations (CSOs) to develop anti-violence dialogue and increase public awareness of, and critical thinking about, gender norms. As part of this effort, BERSAMA also engages media to hone its messaging and increase the effectiveness of behavior change communication campaigns. In its efforts to involve government, BERSAMA facilitates engagement with key government bodies and advocate for an integrated government service package (with health, education, legal aid and security elements) to address GBV at the sub-national level. BERSAMA also provides training to non-governmental organization and civil society organization sub-grantees to improve their individual and collective capacity to prevent and respond to GBV. Following are CVE related activities that DG is planning to implement under BERSAMA:

• Strengthen the ability of community leaders, especially women, religious and customary leaders, to counter radicalization and recruitment in communities;

• Program to amplify the voices of victims and survivors of terrorism, as well as former Violent Extremist Organization (VEO) members, to promote alternatives narratives.

2.2.4 People to People Peacebuilding Activity (P2P)

With funding from Bureau for Democracy, Conflict and Humanitarian Assistance (DCHA), Office of Conflict Management and Mitigation (CMM) Washington DC, DG is anticipating funding for carry out activities that mitigate conflict and promote reconciliation by bringing together individuals of different ethnic, religious, or political backgrounds from areas of civil conflict.

DG will engage groups with opposing views and perspective. By doing this, DG believes that trust and solidarity can be strengthened. The overall aim of increased engagement is to foster tolerance and decrease the dynamics of conflict and promote reconciliation. Working with civil society, cultural organizations, schools, universities and media, interventions will include:

• Facilitate discussion forums and create space for inclusive dialogue among communitiesto overcome ethnic and religious divisions;

• Organize exchanges and placements of groups and individuals to facilitate learning andincrease the understanding of diversity and solidarity;

• Increase skills and capacities to understand, address and speak-up against ethnic andreligious stereotypes at home, school, workplace and in public;

• Implement advocacy activities on how to search and use sources of information,including traditional media and social media in a non-discriminatory and responsible way

3. Justification for Categorical Exclusion

Pursuant to 22 CFR 216.2(c)(1), a Categorical Exclusion is recommended for Democratic Governance Project-financed activities under CEGAH, MAJU, BERSAMA, and P2P activities which the actions do not have a direct or indirect impact on the natural or physical environment. These activities justify Categorical Exclusions, pursuant to 22 CFR 216.2(c)(1) and (2), for which an Initial Environmental Examination, or an Environmental Assessment are not required because the actions do not have an effect on the natural or physical environment.

Specifically, as currently planned for CEGAH, MAJU, BERSAMA, and P2P activities will fall into the following classes of action:

a) Education, technical assistance and training (216.2(c)(2)(i));b) Analyses, studies, and workshops (216.2(c)(2)(iii));c) Document and information transfer (216.2(c)(2)(v)); andd) Activities that will develop the capability of recipient countries to engage in development

planning (216.2(c)(2)(xiv)).

None of these interventions will directly affect the environment.

The following matrix summarizes the recommended threshold decisions for activities covered under this Democratic Governance Project IEE (after HRGP being excluded from the scope of this IEE):

Mechanism Name

Projected Implementation

Period

Projected Total Award

Project Location Threshold Recommendation

Environmental Class of Action

Accountability Flagship Activity

(CEGAH)

February 1, 2016 to

January 31, 2021

$37,400,000 National level, Maluku, North Maluku, West Papua, and Papua

Categorical Exclusion

• education, technical assistance and training

• analyses, studies, and workshops

• document and information transfer

• activities that will develop the capability of recipient countries to engage in development planning

Citizen Rights Activity (MAJU)

October 1, 2015 to

September 30, 2020

$13,350,000 National level, Maluku, North Maluku, West Papua, and Papua

Categorical Exclusion

• education, technical assistance and training

• analyses, studies, and workshops

• document and information transfer

• activities that will develop the capability of recipient countries to engage in development planning

Eastern Indonesia Activity

(BERSAMA)

October 1, 2015 to

June 30, 2021

$7,400,000 National level, Maluku, North Maluku, West Papua, and

Papua

Categorical Exclusion

• education, technical assistance and training

• analyses, studies, and workshops

• document and information transfer

• activities that will develop the capability of recipient countries to engage in development planning

People-to-People (P2P)

Peacebuilding activity

TBD $1,600,000 National and Local level

Categorical Exclusion

• education, technical assistance and training

• analyses, studies, and workshops

• document and information transfer

• activities that will develop the capability of recipient countries to engage in development planning

Total $59,750,000

As part of the monitoring strategy, the Mission Environmental Officer (MEO) may conduct spot check to verify whether the conditions on the field already in accordance with the scope of this IEE.

4. Limitation and Revision 4.1 Limitation This IEE does not cover activities involving the following:

1. Activities that normally have a significant effect on the environment under 22 CFR 216.2(d)(1);

2. Assistance, procurement or use of genetically modified organisms (GMOs), which will require preparation of a biosafety assessment and review in accordance with ADS 201.3.11.2(b);

3. Activities involving small-scale construction or rehabilitation works; 4. Activities for the procurement, use or recommendation for use of pesticides or activities

involving procurement, transport, use, storage, or disposal of toxic materials; 5. Activities involving support to wood processing, agro-processing, industrial enterprises,

and regulatory permitting; 6. USAID Development Credit Authority (DCA) or Global Development Alliance (GDA)

programs; 7. Procurement or use and/or disposal of Asbestos Containing Materials (ACM) (i.e. piping,

roofing, etc.), Polychlorinated Biphenyls (PCB) or other hazardous/toxic materials for construction projects;

8. Procurement, use and/or disposal of equipment containing and/or generating low-level radioactive materials and wastes.

Any of these actions would require an amendment to the IEE approved by the Bureau Environmental Officer (BEO)/Asia. 4.2 Revision If during implementation, project activities are considered outside of those described in this IEE, an amendment to the IEE shall be submitted. Pursuant to 22 CFR 216.3(a)(9), if new information becomes available which indicates that activities to be funded by the Democratic Governance Project might be "major" and their effect "significant," this Threshold Decision will be reviewed and revised by the cognizant operating unit and submitted to the BEO/Asia for approval and, if appropriate, an Environmental Assessment will be prepared. This IEE shall also be amended when: 1) the funding levels in increased beyond $250,000; 2) LOP is extended beyond 6 months; and 3) the scope and nature activities are changed.

APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED: By signing below, you approve the IEE Amendment #2 to Asia 15-060 for Democratic Governance Project

DRG:

MEO:

RLO:

Maria lning N i USAID/ln esia - acting Director Democratic Righi Government Office

iawan USAID/lndonesia - Mission Environmental Officer

-~......._-(._..<~ __ Date: '?'k&\'1 Betty~ USAID/lndonesia - Resident Legal Officer

REO: c \ «-o•e ~ b':l e.- "'""-. I Date: 9 1-:r I &<> 11-01ristophe~ ~ge

USAID/RDMA - Regional Environmental Officer

DDIR: <:::SD( --- Date~ (:::} I ry-Jon Lindberg USAID/lndonesia - acting Deputy Mission Director

DECISION OF USAID/INDONESIA MISSION DIRECTOR:

DIR:

AID/Indonesia - acting Mission Director

BUREAU ENVIRONMENTAL OFFICER:

- ---A--+---_Date:Q _Lg/ ZoJ-;;-son ~

reau Envlronmental Officer

Putu Kurnlawan <pkumiawan@usaid.gov>

Draft IEE Amendment#2 Democratic Governance Project for your clearance

Christopher Dege <cdege@usaid.gov> To: Putu Kurniawan <pkumiawan@usaid.gov> Cc: "Michael T. Weaver" <miweaver@usaid.gov>

Dear Putu:

Thu, Sep 7, 2017 at 8:08 AM

This draft IEE Amendment#2 Democratic Governance Project looks good to me. With this email I clear as REA.

If there are any other questions, let me know.

Regards,

Chris

Christopher Dege

Regional Environment Office USAID Regional Development Mission for Asia email: cdege@usald.gov

Office: +66-2-257-3287

Mobile: +66-69-692-8204

r:"\uSAID ~..) ·-~-<Ho"'°'"

On Wed, Aug 30, 2017 at 3:53 PM, Putu Kumiawan <pkumiawan@usaid.gov> wrote: Dear Chris,

Let me introduce myself first. My name Putu Kumiawan, and hold the position as MEO In Indonesia. Congratulation on your assignment as our new REA and really hope that we can work together in the future. Congratulation also for Michael Weaver on his new role as Deputy REA.

Anyway, kindly find attached the packages document of IEE Amendment#2 Democratic Governance Project for your review and clearance. The DRG office wanted to amend this document mainly to add Countering Violent Extremism (CVE) under the scope of this IEE. I do not know your preference, but I provide you with the link to Google Docs, together with the word version and also attached tho scan copy of the document which already cleared by DRG Office Director, MEO, and RLO. You can provide your Input directly on the google doc or on the word file, if any. Please let me know If you have any concerns or question related to this document and thank you so much for your support.

https://docs.google.com/a/usaid.gov/documenVd/1vBVWAle-N6TbohAnqAN35Z7nabquT3LqVaBG3Hq7UY4/edit? usp=sharing

Regards,

Putu Kumiawan

Putu F. Kumlawan I Mission Environmental Officer USAIDllndOnesl•

Envtronment Offic:a - US Embassy Annex JI. Bud! Kemullaen I no. 1 Jakarta 10110 phone: (+02·21) 3435 9392 ,., : (+62-21) 3<135 9917

moblle: (+62) 811 9410 418