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Safeguards and Social Monitoring Report

Project Number: 42916-014 June 2017

Sarulla Geothermal Power Generation Project

(Republic of Indonesia)

Semi-Annual Report (January to June 2016)

Prepared by Sarulla Operations Limited for the Asian Development Bank

This safeguards and social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation on or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


5th Reporting

(Monitoring period: January-June 2016)

August 2018

Sarulla Operations Ltd

326959 TRD TRF 14/03 A

Z:\Singapore\GB4\Projects\351208 - Sarulla Geothermal 2015\6.0 Deliverables\6. ADB CM Rev\Sarulla_ADB_SM_3rd_2015_Final

v7_MM_clean.docx July 2015

Form of Safeguards and Social Monitoring Report

3rd Reporting (June 2015)(Monitoring period: January-June, 2015)


5th Reporting (Monitoring period: January-June 2016)

August 2018

Sarulla Operations Ltd

The Energy Building 51st Floor SCBD Lot 11A Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190

Safeguards and Social Monitoring Report 5th Reporting (Monitoring period: January-June 2016)

Revision Date Originator Checker Approver Description

A 28 February 2017 Pritta Puspitasari Leonard Sitompul Samosir Melva

Albaren Simbolon Donny Fengki

Albaren Simbolon Donny Frengki

First Draft

B 26 April 2017 Samosir Melva Donny Frengki Donny Frengki Second Draft

C 21 June 2017 Pritta Puspitasari Albaren Simbolon Albaren Simbolon Third Draft

D 2 August 2018 Pritta Puspitasari Donny Tambunan Samosir Melva

Donny Tambunan Samosir Melva

Final report as approved by ADB

Issue and revision record


Chapter Title Page

A. Project/Business Name and Summary Information 1

(i) Location of project/business ____________________________________________________________________ 1 (ii) Nature ______________________________________________________________________________________ 1 (iii) Scale/size ____________________________________________________________________________________ 1 (iv) Date of construction/operation commencement ____________________________________________________ 4 (v) Compliance __________________________________________________________________________________ 4 (vi) Name, designation and signature of person responsible for preparing/reviewing the report _________________ 5

B. Update on the status of Design/Construction Activities of the Sarulla Geothermal Power Project 6

(i) Drilling Activities (exploratory and production wells) _________________________________________________ 6 (ii) Well Pads ____________________________________________________________________________________ 6 (iii) SIL Geothermal power plant _____________________________________________________________________ 6 (iv) NIL Geothermal power plant ____________________________________________________________________ 7 (v) Access Road (main and internal) _________________________________________________________________ 7 (vi) Transmission Line 150kV _______________________________________________________________________ 7 (vii) Workers’ accommodation area and working area ___________________________________________________ 8 (viii) Laydown areas _______________________________________________________________________________ 8 (ix) Borrow areas _________________________________________________________________________________ 8 (x) Disposal areas ________________________________________________________________________________ 8 (xi) Decommissioning (if applicable)__________________________________________________________________ 8

C. Relevant Environmental Permits of Compliance Certificates 9

(i) Summary of permit conditions and media(s) covered ________________________________________________ 9 (ii) Issued by which Competent Authority ____________________________________________________________ 11 (iii) Issuance dates and duration of validity ___________________________________________________________ 11 (iv) Renewal requirements ________________________________________________________________________ 11 (v) Other standards and/or certificates (e.g. ISO 14000 Environmental Systems and Standards) ________________ 11 (vi) Key developments and any major changes in location and design, if any ________________________________ 11 (vii) Progress of the applicable environmental and social studies during the reporting period ___________________ 11 (viii) Findings of any regulatory inspections and/or audits ________________________________________________ 11

D. Incidents of Violations or Non-Compliance 12

(i) Recorded dates and responsible agencies _________________________________________________________ 12 (ii) Nature of non-compliance, including spills of hazardous materials and accidental releases _________________ 12 (iii) Violation or non-compliance based on what environmental standards and regulations ____________________ 12 (iv) Recorded dates and authorities _________________________________________________________________ 12 (v) Media, civil society organizations/NGOs, or community reactions (if any) _______________________________ 12 (vi) Corrective actions, deadlines, identification of responsible parties _____________________________________ 12 (vii) Status of implementation of Corrective Action Plan (CAP) ____________________________________________ 12 (viii) Incidents with security forces ___________________________________________________________________ 12

E. Incidents of Environmental, Occupational/Community Health and Safety Accidents 13

Contents


(i) Incident recorded dates and responsible agencies __________________________________________________ 13 (ii) Scale of damage and injury (if any) ______________________________________________________________ 13 (iii) Authorities in charge of investigation/recording ____________________________________________________ 14 (iv) Media or community reactions (if any) ___________________________________________________________ 15 (v) Corrective actions, deadlines, identification of responsible parties _____________________________________ 15

F. Land Acquisition and Involuntary Resettlement 16

(i) Progress in Implementation of the Resettlement Plan _______________________________________________ 16 a) General overview: Summary of successes and challenges ____________________________________________ 16 b) Status of component activities __________________________________________________________________ 16 c) Information disclosure, consultation, and participation activities ______________________________________ 17 d) Progress in implementation resources: staff, budget, and other resources ______________________________ 17 e) Resettlement-related grievances ________________________________________________________________ 17 (ii) Progress in Implementation of the SSCAR Corrective Action Plan ______________________________________ 17 (iii) Progress of the Implementation of External Monitor’s Recommendations/Corrective Actions _______________ 17 (iv) Forward Plan /Next Steps (for the next 6 months) ___________________________________________________________ 17

G. Indigenous People 18

(i) Summary of Project Activities and Social Context of the Indigenous Peoples Plan (IPP) _____________________ 18 (ii) Overview of the IPP Implementation _____________________________________________________________ 18 (iii) Progress in the implementation of the IPP components ______________________________________________ 19 a) Agricultural/Livelihood restoration ______________________________________________________________ 19 ▪ Skill Training _______________________________________________________________________________ 20 ▪ Assistance for the most vulnerable group ______________________________________________________ 21 ▪ Assistance for women’s group (PKK) ____________________________________________________________ 23 b) Education __________________________________________________________________________________ 24 c) Health _____________________________________________________________________________________ 24 d) Infrastructure _______________________________________________________________________________ 27 The activities in this program were the assistance/support given to the churches/mosques and local communities’ activities in

the form of donations for the following activities: __________________________________________________ 28 a. SIL area: Hand over of assistance, 1 unit of desktop to Pahae Jae Sub District Office _______________________ 28 Handover of assistance, 1 unit of desktop to Pahae Jae Sub District Police Office _____________________________________ 28 b. NIL area: Hand over of assistance, 1 unit of desktop to Pahae Julu Sub District Office ______________________ 28 c. Various local communities’ groups activities from the village, Sub District and Local government/Regency level. 28 (iv) Summary of Noncompliance and Corrective Action Plans related to the IPP _____________________________ 28 (v) Progress in the Implementation of External Monitor’s Recommendations/Corrective Actions _______________ 28 (vi) Forward Plan/Next Steps for the next 6 months ____________________________________________________ 28

H. Local Recruitment, Labour Relations and Conditions 31

(i) Local labour recruitment commitments __________________________________________________________ 31 a) Project procedures for hiring ___________________________________________________________________ 31 b) Requirements on workers recruitment with information on origin of migrant or local workers (NIL, SIL, other

areas), position/work occupied, and with sex-disaggregation (SOL and contractors) _______________________ 31 c) Tracking of recruitment of women personnel (SOL and contractors)____________________________________ 31 (ii) Nature of labour dispute or grievance, including conflicts between groups ______________________________ 32 (iii) Legal requirements, permit conditions and renewal requirements _____________________________________ 32 (iv) Authorities in charge of investigation/recording ____________________________________________________ 32 (v) Media, civil society organizations/NGOs, or community reactions (if any) _______________________________ 32


(vi) Corrective actions, deadlines, identification of responsible parties _____________________________________ 32 (vii) Labour relations and living conditions for construction labour force ____________________________________ 32

I. Environmental Capacity 33

(i) Staff capacities in environmental management (as relevant) including number and suitability of environmental management personnel _______________________________________________________________________ 33

(ii) Degree of awareness of (a) environmental management, (b) health and safety, (c) environmental laws and regulations _________________________________________________________________________________ 33

(iii) Training conducted, if any, including the number of sessions, topics covered and percentage of workforce trained _____________________________________________________________________________________ 33

(iv) Needs assessment of environmental management capacity (as relevant) _______________________________ 33 (v) Awareness level of SOL and contractors’ field personnel _____________________________________________ 33

J. Social Management Capacity 35

(i) SOL Social team / External Relation Team– number, competence and adequacy of staff who are implementing the IPP and RP __________________________________________________________________________________ 35

(ii) Human resources department – number and adequacy of staff to monitor labour and working conditions ____ 35 (iii) Training conducted, if any, including the number of sessions, topics covered and percentage of workforce

trained _____________________________________________________________________________________ 35

K. Stakeholder Engagement/CSR Activities 36

(i) Details of consultation and participation activities (with gender disaggregated data), including, where applicable, local community, women’s issues and concerns, NGOs, cultural and social groups, leaseholders, and other stakeholders, including affected groups _________________________________________________________ 36

(ii) Details of approach/methodology on addressing the concerns and issues raised at consultations _______ 39 (iii) Describe efforts to promote community relations and local development for people of the project area ______ 39 (iv) Implementation of grievance mechanism _________________________________________________________ 39 a) Grievances recorded __________________________________________________________________________ 39 b) Types of complaints and status of resolution ______________________________________________________ 40 c) Effectiveness of grievance mechanism ___________________________________________________________ 40 (v) Project procedures for acquisition of goods and services _____________________________________________ 40

L. Issues, Status of Implementation of Mitigation Measures in the Environmental Management Plan and

Compliance with Environmental Qualities and Standards (national and international, as relevant) and

Environmental and Social Requirements 41

(i) Air and Odour _______________________________________________________________________________ 41 (ii) Water (surface and ground water) _______________________________________________________________ 44 (iii) Waste generation and management _____________________________________________________________ 44 a) Wastewater _________________________________________________________________________________ 44 b) Solid and hazardous waste _____________________________________________________________________ 44 (iv) Biodiversity and habitat _______________________________________________________________________ 45 (v) Noise and vibration ___________________________________________________________________________ 45 (vi) Occupational health and safety _________________________________________________________________ 46 a) Training programs carried out __________________________________________________________________ 46 b) Emergency situations and response ______________________________________________________________ 46 (vii) Community health, safety and security ___________________________________________________________ 46 (viii) CO2 emissions by the Projects __________________________________________________________________ 46 (ix) Earthquake occurrences/incidences (seismicity) ____________________________________________________ 47 (x) Environmental Management Plan _______________________________________________________________ 47


(xi) Environmental Monitoring Results and assessments ________________________________________________ 47 (xii) Findings and recommendations of ISO 14001 and OHSAS 18001 audit __________________________________ 47 (xiii) Problems encountered and action plan for the next reporting period ___________________________________ 47 (xiv) Other information and feedback ________________________________________________________________ 47

Appendixes 48

Appendix A. Workers’ Accommodation _____________________________________________________________________ 49 Appendix B. Implemented IPP related activities that provide infrastructural, agricultural, educational and health benefits to

local communities. ___________________________________________________________________________ 60 Appendix C. Potential Non-compliances and Recommended Actions _____________________________________________ 66 Appendix D. Land Acquisition – SIL-1 – SIL-2 Brine Injection and Siaccimun River (NIL Area) ___________________________ 68

Glossary 69

Tables

Table A-1: SIL and NIL layout _____________________________________________________________________________ 3 Table B-1: Status of Well Pad, as of June 2016 __________________________________________________________________ 6 Table C-1: Permit Status ____________________________________________________________________________________ 9 Table C-2: Inspection carried out by Indonesian Authorities (January to June 2016) ________________________________ 11 Table E-1: Health and Safety Key Performance Indicators and Progress _____________________________________________ 13 Table E-2 Description of incidents/accidents from January to June 2016 ________________________________________ 13 Table F-1 Land Acquisition for Project Site ________________________________________________________________ 16 Table F-2 Land Acquisition for Transmission Line ___________________________________________________________ 16 Table F-3 Current status of Corrective Actions _____________________________________________________________ 17 Table G-1 Implemented programs in the first half of 2016 summary ____________________________________________ 19 Table G-2 Implemented agriculture training in SIL area ______________________________________________________ 20 Table G-3 Agricultural training activity at NIL area ___________________________________________________________ 20 Table G-4 Skill trainings conducted in May – June 2016 ______________________________________________________ 21 Table G-5 Type of assistance delivered for the most vulnerable group __________________________________________ 21 Table G-6 Assistance delivered to the most vulnerable group _________________________________________________ 23 Table G-7 Assistance program for women’s group (PKK) ______________________________________________________ 23 Table G-8 English is Fun program implementation __________________________________________________________ 24 Table G-9 “English is Fun Program” activities _______________________________________________________________ 24 Table G-10 Posyandu Lansia as of June 2016 ________________________________________________________________ 25 Table G-11 Posyandu Lansia Activities _____________________________________________________________________ 25 Table G-12 Posyandu Balita as per June 2016 _______________________________________________________________ 26 Table G-13 Posyandu Balita in the village ___________________________________________________________________ 26 Table G-14 Progress of infrastructure program at SIL and NIL ___________________________________________________ 27 Table G-15 Clean water piping program at Lumban Jaean _____________________________________________________ 27 Table H-1: Recruitment status as of June 2016 _________________________________________________________________ 31 Table K-1 Socialization (Jan – June 2016) __________________________________________________________________ 37 Table K-2 Grievances recorded Jan – June 2016 ____________________________________________________________ 39 Table K-3 Status of technical solution for some major cases from previous reporting ______________________________ 40 Table L-1 Road watering during dry event _____________________________________________________________________ 41 Table L-2 Vehicle wheels washing ___________________________________________________________________________ 41 Table L-3 Signboard at well pad _____________________________________________________________________________ 42 Table L-4 Warning sign at well pad ___________________________________________________________________________ 42 Table L-5: H2S and Noise monitoring in NIL area ____________________________________________________________ 43 Table L-6: Gas meter readings at control room _____________________________________________________________ 44


Table L-7: H2S sampler at the drilling rig ___________________________________________________________________ 44 Table L-8: New Hazardous Waste Storage Facility ___________________________________________________________ 45 Table L-9: Fuel consumption and electricity usage (January-June 2016) __________________________________________ 47 Table App.D-L-10: Potential Non-compliances and action item ____________________________________________ 67


1

(i) Location of project/business

The Sarulla geothermal project is located approximately 40km south of Tarutung on the side of the Trans Sumatera

Highway (Tarutung – Sipirok). Administratively, the project is located in Pahae Jae and Pahae Julu Districts, North

Tapanuli Regency, North Sumatera Province, Indonesia.

(ii) Nature

Sarulla Operations Limited (SOL) is an operation company established by the consortium of Itochu Corporation,

Kyushu Electric Power Co. Inc., Inpex Corporation, Ormat International Inc. and PT. Medco Power Indonesia. SOL plans

to develop geothermal power plants with a combined capacity of 330MW. The Project comprises development of two

geothermal fields within the Sarulla valley which include the following activities:

- Development of Sarulla geothermal fields - namely Silangkitang (SIL) field and Namora I Langit (NIL) field;

- Construction and operation of geothermal power plants, consisting of one (1) unit at SIL and two (2) units at

NIL, with each unit having a nominal capacity of 110 MW;

- Construction of a combined length of approximately 14 km of 150 kV (high voltage) overhead transmission line:

– From SIL field to Perusahaan Listrik Negara (PLN) Substation

– From NIL field to PLN Substation

The main contractors involved in the Project’s construction are:

- Hyundai Engineering and Construction (HDEC) – responsible for civil/construction works, with the scope of work

to covering project infrastructure and the power plant

- Halliburton (HAL) – responsible for well drilling

(iii) Scale/size

SIL is located in Pahae Jae District, North Tapanuli Regency. The SIL field has three (3) existing well pads developed by

Unocal North Sumatera Geothermal (UNSG) in 1994 (see Table A-1). The pads are identified as SIL 1, SIL 2 and SIL 3.

Well pads locations are described as follows:

- SIL 1 - located in Silangkitang Village, about 50 metres from Sumatera Highways (Tarutung – Sipirok)

- SIL 2 - located to the north-west of SIL 1, on the side of Aek Batang Toru which is part of Sigurung-gurung Village

- SIL 3 - located to the south of SIL 1, in Pardomuan Nainggolan Village

Namora I Langit (NIL) field has three (3) existing well pads, developed in 1997. The pads are previously identified as

NIL 1, NIL 2 and NIL 3 which are located in the area close to Sibaganding, Lumban Jaean, and Simataniari villages. None

of these existing well pads will be utilised in the current Project design.

SOL had prepared six (6) new well pads, which are identified as NIL-1n, NIL-2n, WJR-1n, WJR-2n, WJP-1, and NIL-3n

(see Table A-1). The description of the well pads locations are as follow:

- NIL 1 - located to the southwest of Simantaniari village

- NIL 2 - located to the west-southwest of Simantaniari village

- WJR 1 - located to the north of Simantaniari village

- WJR 2 - located to the south-east of Simantaniari village

- WJP 1 - located to the south-west of Lumban Jaean village

A. Project/Business Name and Summary Information


2

- NIL 3n – located to the South of Simataniari village and NIL Power plant


3

Table A-1: SIL and NIL layout

Source: SOL Indigenous People Plan, June 2015


4

(iv) Date of construction/operation commencement

The construction for the power plant units commenced in 2nd quarter of 2014, and is scheduled to be completed in

1st quarter of 2018.

(v) Compliance

This report has been developed in reference to the following international standards and guidelines:

- International Finance Corporation (IFC) Performance Standards;

- World Bank Group’s Environmental, Health and Safety Guidelines;

- Equator Principles;

- Asian Development Bank (ADB) Safeguards; and

- Japan Bank for International Cooperation (JBIC) Guidelines.

This report also demonstrates the Project’s compliance with:

- The Project’s environmental and social management documentation, which include:

– Environmental and Social Impact Assessment (ESIA);

– Suplementary Environmental and Social Impact Assessment (Suplementary ESIA)

– Environmental and Social Management System (ESMS) version D;

– Environmental and Social Action Plan (ESAP);

– Supplementary Lenders Information Package (SLIP) version D; and

– Various Environmental and Social Management Plans (ESMP), including:

▪ Occupational Health and Safety Plan

▪ Emergency Preparedness and Response Plan

▪ Labour Management Plan

▪ Community Health and Safety Communication & Management Plan

▪ Contractor(s)/Supplier Management Plan

▪ Security Management Plan

▪ Traffic Management Plan

▪ Ambient Air & Noise Management Plan

▪ GHG Management Strategy

▪ Hydrogen Sulphide Monitoring Plan

▪ Water Management Plan

▪ Brine & Wastewater Management Plan

▪ Drill Cuttings and Drill Fluids Management Plan

▪ Erosion Management Plan

▪ Solid and Hazardous Waste Management Plan

▪ Land Contamination Management Plan

▪ Hazardous Materials Management Plan

▪ Biodiversity Action Plan

▪ Biodiversity Offset Management Plan

▪ Construction E&S Management, Monitoring and Reporting Plan

- National requirement, which is represented by the Project’s AMDAL documentation whereby, Table VI-1: Matrix

of Environmental Management Plan (within the Addendum to ANDAL, RKL-RPL, 2013) covers construction related

activities; and

- All relevant laws, guidelines, standards, treaties and agreements of Indonesia as detailed in the documents listed

above.


6

The information below covers the activities conducted until June 2016.

(i) Drilling Activities (exploratory and production wells)

Four (4) drilling rigs were deployed for the Project. As of June 2016, six (6) well pads had been drilled and three (3)

additional well pads were in drilling process. Six (6) of these well pads are located in NIL and the others located in SIL.

(ii) Well Pads

Nine (9) well pads have been constructed, four (4) well pads (SIL-1n, SIL-3, NIL-3n, and WJP-1) were drilled. Half of the

NIL laydown area is utilized as NIL-3n pad. The status of the respective well pads as of June 2016 is shown in Table B-

1.

Table B-1: Status of Well Pad, as of June 2016

Well Pad Status

SIL-1n Construction complete. Drilling complete.

SIL-2 Construction complete. Drilling complete.

SIL 3 Construction complete. Drilling complete.

NIL-1n Construction complete. Drilling suspended.

NIL-2n Construction complete. Drilling complete.

WJR-1n Construction complete. Drilling suspended.

WJR-2n Construction complete. Drilling on going.

WJP-1n Construction complete. Drilling ongoing.

NIL-3n Construction complete. Drilling on going.

(iii) SIL Geothermal power plant

In this reporting period, there were three major activities:

a. Civil Work

- Completed soil nailing and shotcrete at cut slopes area of the Power Plant.

- Completed paving of permanent road inside SIL PP.

- Continued with architectural finishes primarily painting, plumbing fixtures and electrical utility hook up

(i.e. recepticles, switches, lighting fixtures, fire/heat/smoke detectors).

- Continued with the fence installation at Power Plant perimeter.

b. Mechanical and Electrical Work

- Completed the third stage oil flushing of STG. Oil is being circulated continuously as part of the last stage

oil flushing.

- Completed the installation of feed pumps, condensate pumps and vapor recovery unit (VRU). Continued

with compressed air piping at the OEC.

B. Update on the status of Design/Construction Activities of the Sarulla Geothermal Power Project


7

- Completed stringing of pipes for geothermal pipelines inside the power plant, particularly for the steam,

brine and brine/condensate pipeline and continued with final fit-up and welding and conducting

pressure tests/hydrostatic tests.

- Completed the reinjection pipeline installation between SIL-1n wellpad and SIL2n wellpad.

- Continued with hook up of piping to SIL 1-1 and SIL 1-2 wellheads at SIL-1n wellpad.

- Continued with cable pulling and termination at the STG, OEC units, Plant BOP, SIL-1n wellpad and inside

the buildings.

- Completed pre-commissioning of the Switchyard and obtained RLB. (Recommendation Eligible Voltage)

by 3rd party inspector accredited by PLN.

- Completed the pre-commissioning of 1 (one) line of T-Line and obtained RLB (Recommendation Eligible

Voltage) by 3rd party inspector accredited by PLN.

c. Commissioning

- STG lube oil flushing commenced on April 19, 2016 and last stage oil flushing through permanent oil line

after reinstallation of bearings, gland seal and turning gear continued.

- Heating up and venting for steam blowing commenced by opening SIL 1-2 wellhead and SIL 1-4 wellhead.

- Commissioning procedures for equipment was submitted to Operator and Operator’s review was in

progress.

(iv) NIL Geothermal power plant

- Completed concrete placement of STG pedestal of Second Generating Unit.

- Completed foundation work and commenced steel structure erection of the STG Building of Second Generating

Unit.

- Continued with foundation work of the OEC air-cooler and OEC turbo-generator of Second Generating Unit and

Third Generating Unit.

- Continued with foundation work of Switchyard area.

- Continued with foundation of water tank and fire pump building.

- Completed lean concrete work for STG foundation of Third Generating Unit.

- Preparing for pile head treatment and rebar installation.

- Completed pile driving at STG Building of Third Generating Unit.

- Commenced steel structure erection of Switchgear Electrical Building and Machinery Room.

(v) Access Road (main and internal)

- Continued with drainage along the Road 5, WJP-1n and access road to SIL-3n.

- Continued with paving the access road to SIL-3n

(vi) Transmission Line 150kV

Sub-Station and T- line (Special Facilities)

- Completed all activity prior to energization at SIL Switchyard and obtained RLB (Recommendation Eligible Voltage) by 3rd party inspector accredited by PLN on June 27, 2016.

- Completed conductors stringing for 1 (one) line between SIL Power Plant and PLN Sub-Station and related pre-commissioning prior to energization and obtained RLB (Recommendation Eligible Voltage) by 3rd party inspector accredited by PLN on June 28, 2016.

- Conductors stringing for the remaining 1 (one) line and OPGW between SIL Power Plant and PLN Sub-Station stringing continues on.

- Continued with the T-line tower foundations between NIL Power Plant and PLN Sub Station.


8

PLN T-Line and Sub-Station - Completed site preparation and equipment foundations work of SIL bays and continued with foundation work of

NIL bays. - PLN was ready to provide the commissioning power at 150 kV through the 275 kV line and bypass the Sarulla Sub-

Station and New Padang Sidempuan Sub-Station by June 25, 2016. Installation of the 2nd line out of 2 lines continued.

(vii) Workers’ accommodation area and working area

Several workers’ accommodation camps were constructed for the Project as follows:

- HDEC worker’s camp (located in SIL-D area) with a capacity for approximately 100 persons

- HDEC’s sub-contractors (Multi Adverindo, Powertech, Yeonhab) non-local worker’s camp are located around the Project area with capacity for approximately 50 persons on each camps.

- There are three (3) main camps for HAL and its subcontractors located at SIL-D, SIL-5 and NIL-3 respectively with capacity for approximately 150 persons per camps.

- Aside from main camps, HAL and its subcontractors also set up “mini” camps at each wellpad where drilling activity is ongoing. The capacity of each mini camp is about 10 persons.

(viii) Laydown areas

The laydown areas at NIL and SIL are operated for material and equipment laydown.

(ix) Borrow areas

The borrow areas at NIL and SIL are not in use.

(x) Disposal areas

Disposal areas at NIL and SIL are in use.

(xi) Decommissioning (if applicable)

Not applicable at the time of writing.


9

(i) Summary of permit conditions and media(s) covered

SOL actively monitors the status of license as summarised in Table C-1 below.

Table C-1: Permit Status

Permit / Licenses Issuing

Authority Status

Planned Date

Date Obtained

Renewal required (Y/N).

If Y, date required)

Note

Certificate of Right to Build (Serifikat Hak Guna Bangunan or SHGB) for the Project Site and the land upon which the Special Facilities are located

Land Office

SIL: All 7 SHGB issued (100%). NIL: All 12 SHGB issued (100%). Transmission Line: Application in process.

- 30 Apr 14 Y

(after 30 years) -

Permanent Electricity Business License (Izin Usaha Penyediaan Tenaga Listrik or IUPTL)

Ministry of Energy and Mineral Resources (EBTKE)

Obtained. - 24 Dec 14 Y

(after 30 years) -

Building Construction Permit (Izin Mendirikan Bangunan or IMB) for the Special Facilities

Local Government

Done: 38 IMB - 09 Dec 14 N -

Permit to use public roads for heavy load transportation (ie Port and Haul Road Licenses) of the power plant Construction Contractor

Local Government

To be obtained each time mobilization takes place.

As required.

- N Contractor coordinate with government (police dept.) for their mobilisation program

Permit to operate certain equipment and tools (ie Operation Worthiness License) including but not limited to the following equipment/tools: Pressure Vessel Fire Extinguishers Lightning Protection Power Production Machinery / Engine Lifting Equipment and Transportation Electrical Equipment

Ministry of Energy and Mineral Resources (EBTKE) and/or Ministry of Manpower (through Regional Office)

Permit is obtained each time the equipment is to be used

As required

- N Contractor has permits for equipment (Surat Kalayakan Pemakaian Peralatan,SKPP) from EBTKE.

(Geothermal) Installation Use

Directorate General of

To be obtained. As required.

- N SIL power plant in 2016.

C. Relevant Environmental Permits of Compliance Certificates


10

Permit / Licenses Issuing

Authority Status

Planned Date

Date Obtained

Renewal required (Y/N).

If Y, date required)

Note

Worthiness Certificate (Surat Kelayakan Penggunaan Instalasi or SKPI)

New Renewable Energy and Energy Conservation

NIL power plant in 2017 and 2018.

Certificate for Specialist Technician to operate heavy equipment of the power plant Construction Contractor

Ministry of Energy and Mineral Resources (Directorate General of New Renewable Energy and Energy Conservation)

To be obtained each time SOL employ Specialist Technician.

As required.

- N -

Hazardous and Poisonous Waste Storage Permit (Izin Penyimparnan Limbah B3)

Local Government

Obtained (both for HAL and HDEC)

- 13 July 2015 (HAL),

23 June 2015 (HDEC)

Y (Every 5 years)

-

Operational Worthiness Certificate (Sertifikat Laik Operasi or SLO) of the Electricity Generation Facilities

Accredited Electrical Inspection Insitute (Lembaga Inspeksi Listrik Terakreditasi) / Directorate General of Electricity

To be obtained. - - Y (every 10 years)

-

Purchasing and usage explosive permit

The Head of Police of Indonesia

Obtained. - 13 Nov 14 Y -

Ownership, Authorization and Storage Explosive Permit (P3)

The Head of Police of Indonesia

Obtained. - 11 Sept 2015 Y (every 2 years)

-

Certificate for Specialist Technician to operate Electricity Generation Facilities

Electricity Technical Experts Association (Ikatan Ahli Teknik Ketenagalistrikan) / Directorate General of Electricity

To be obtained. As required.

- N -

Surface water Intake and usage permit (SIPAP)

Local Government

Obtained 15 Oct 15 (SIL area)

25 Jul 14 (NIL area)

Y (Ever 5 years)

-


11

(ii) Issued by which Competent Authority

Please see Table C-1 above.

(iii) Issuance dates and duration of validity

Issuance dates and duration of validity are included in Table C-1 above.

(iv) Renewal requirements

Renewal requirements are included in Table C-1 above.

(v) Other standards and/or certificates (e.g. ISO 14000 Environmental Systems and Standards)

N/A.

(vi) Key developments and any major changes in location and design, if any

N/A.

(vii) Progress of the applicable environmental and social studies during the reporting period

SOL complies with the RKL-RPL reporting requirements. Prescribed quarterly monitoring for surface water, ground

water, noise and H2S have been carried out on a regular basis. RKL-RPL reports have been consistently submitted to

the authorities every six months.

(viii) Findings of any regulatory inspections and/or audits

A summary of authority inspections (for this monitoring period) is shown in Table C-2.

Table C-2: Inspection carried out by Indonesian Authorities (January to June 2016)

Date Inspection Authority

11-Feb-2016 Drilling installation SIL3n-3 and WJP1-1 EBTKE

4-Apr-2016 Drilling installation SIL3n-2 EBTKE

13-May-2016 Drilling installation NIL3N-2 EBTKE

27-May-2016 Drilling installation WJP1-3 EBTKE

20-June-2016 Drilling installation WJR2-2 EBTKE

Note: EBTKE stands for the Indonesia’s Ministry of Energy and Mineral Resources.


12

(i) Recorded dates and responsible agencies

The list of potential non-compliances and recommended actions to be taken is shown in Appendix C.

(ii) Nature of non-compliance, including spills of hazardous materials and

accidental releases

Please refer to Appendix C.

(iii) Violation or non-compliance based on what environmental standards and

regulations

Please refer to Appendix C.

(iv) Recorded dates and authorities

Please refer to Appendix CC.

(v) Media, civil society organizations/NGOs, or community reactions (if any)

None

(vi) Corrective actions, deadlines, identification of responsible parties

Please refer to Appendix C for the list of potential non-compliances and recommended actions to be taken.

(vii) Status of implementation of Corrective Action Plan (CAP)

N/A

(viii) Incidents with security forces

No incidents with security forces were reported.

D. Incidents of Violations or Non-Compliance


13

(i) Incident recorded dates and responsible agencies

In compliance with the applicable occupational health and safety regulations, SOL submits reports to EBTKE for major

incidents or accidents (ie of scale and nature as prescribed within regulations) that occur within the project site. Table

E-1 below shows the health and safety incident statistics of the Project to the date of this report.

Table E-1: Health and Safety Key Performance Indicators and Progress

Item Jan 2016

Feb 2016

Mar 2016

Apr 2016

May 2016

June 2016

Cumulative to Date

Total Man-hours Worked 671,786 757,972 788,056 876,170 917,962 917,566 8,202,400

Safe Man-hours Worked (without accident)

671,786 757,972 788,056 876,170 484,068* 917,566 4,456,338

Lost Time Injury (LTI) 0 0 0 0 1 0 4

Fatality 0 0 0 0 1 0 0

Permanent Total Disability 0 0 0 0 0 0 0

Permanent Partial Disability 0 0 0 0 0 0 0

Lost Workday Case (LWC) 0 0 0 0 0 0 3

Injurious Non-LTI 1 1 1 1 1 0 24

Medical Treatment Case (MTC) 1 1 1 1 1 0 14

First Aid Case (FAC) 0 0 0 0 0 0 10

Non-Injurious 2 0 1 0 0 1 51

Dangerous Occurrence 0 0 0 0 0 0 2

Near Miss 1 0 0 0 0 0 13

Fire Incident 1 0 0 0 0 0 2

Occupational Illnesses and Industrial Diseases

0 0 0 0 0 0 0

Road Accident 0 0 1 0 0 0 29

Property Damage / Loss 0 0 0 0 0 0 1

Oil Spill/Environmental Incident 0 0 0 0 0 1 4

Note: * Safe MH was reset to 0 as of 17 May 2016 since we had Fatality at NIL power plant on 16 May 2016

(ii) Scale of damage and injury (if any)

Table E-2 Description of incidents/accidents from January to June 2016

Item Description

Lost Time Injury (LTI)

Fatality On Monday May 16, 2016 about 17:10 HRS. During the process of lifting the bundle, one webbing sling attached to the bucket came off tooth of bucket excavator and was swung to hit the IP who was standing on the prime mover. IP got severely injured and passed away on location.

Permanent Total Disability

Permanent Partial Disability

E. Incidents of Environmental, Occupational/Community Health and Safety Accidents


14

Item Description

Lost Workday Case (LWC)

Injurious Non-LTI

Medical Treatment Case (MTC) 1. On 15 January 2016 at around 09:20 Hrs; 1'' Thru torque line broken and spring which cover the line fly from it place and hit injured person in his left hand and abdominal part. The injured person evacuated immediately to the Medic room to have proper treatment and brought to the hospital in Tarutung for further treatment.

2. On 25 February 2016, IP stepped over the scaffolding tube from one side to the other side at the material storage and his foot was caught on the scaffolding tube which made him fall. His lips got contact with the concrete pedestal on this location. The IP was sent to SOS Clinic for treatment and he gets 4 stiches on his lip. He also was brought to hospital to ensure that his teeth having no problem.

3. On Wednesday, 09 March 2016 around at 19.20 hrs, one technician (Injured Person/IP) fell from rig floor. IP got 3 cm wounds on his left head and no fracture and/or other injury. IP got three stitches on his head.

4. On Tuesday, 26 April 2016, the dump truck was in process of unloading sand. The truck helper (IP) standing on the fixed vertical ladder located behind the truck cabin had his left toe pinched. He sustained fracture on his left big toe.

5. On Tuesday, 24 May 2016, while lifting using BOP handling device (robotics), the welding connection between the strut and the nut gave away. The shackle lock pin and nut suspected to struck the IP. IP sustained swollen forehead and cut wound on his nose, doctor on site gave him medical treatment and sent IP to hospital.

First Aid Case (FAC)

Non-Injurious

Dangerous Occurrence

Near Miss On Saturday January 23, 2015 around 02: 30 PM we got rain accompanied by the wind and lightning in EPI base camp at SIL-D, the lapse of a certain period of time the wind is blowing strong increase accompanied rain, at the time of hours 3: 30 PM suddenly voice sounded a rather hard around the area of the base camp and it turns out some of a roof in the base camp of flying due the roof of the other. No one injured and damaged goods in this incident, the roof off immediately plugged it back.

Fire Incident On 11 Jan 2016, at 13;15 PM. One of Powertech generator that placed near Powertech office as it used to supply electric for office, get burnt. Generator operator with Mr. Handoko and his HSE team try to stop the fire immediately using fire extinguisher. At 13:20 the fire was extinguished. During the investigation, known that the generator was burnt due to the malfunction of radiator system that cannot cool the generator. Further root cause was caused by old condition of the generator and rarely maintenance. After this fire incident, Powertech changed into the new generator.

Occupational Illnesses and Industrial Diseases

Road Accident On 1 March 2016, a truck has got overturned. There was no injury person during this incident, but there is some damaged and scratch to the truck.

Property Damage / Loss

Oil Spill/Environmental Incident On Saturday, 11 June 2016, oil spilled from generator fuel tank in front of machinery room. The corrective actions were immediately taken. HDEC blocked the spill in the drainage by placing several absorbent pads, collected the oil spill, contaminated soil and contaminated material (absorbent pads and used rags). The hazardous wastes were stored in HDEC hazardous waste storage.

(iii) Authorities in charge of investigation/recording

EBTKE has responsibility to investigate health and safety-related incidents or accidents.


15

(iv) Media or community reactions (if any)

No media or community reactions have been reported.

(v) Corrective actions, deadlines, identification of responsible parties

N/A.


16

(i) Progress in Implementation of the Resettlement Plan

a) General overview: Summary of successes and challenges

Approximately 3,307 m2 of land in NIL area (Siaccimun river) were acquired on 29th December 2015 and 11th February 2016 as part of the technical solution implementation required for prevention of future erosion under the NIL power plant. SOL also conducted approximately 2,733 m2 land aquisition in SIL area in need for the purpose of making additional loop for brine injection line from SIL-1 – SIL-2 on 23rd February 2016. Most of the land owners are people who sold their land to SOL for SIL-1 – SIL-2 brine injection in 2012. Size of land parcels sold by each land owner is small and thus the impacts are negligible. The details of those land aquisitions are attached in Appendix D.

b) Status of component activities

The status of component activities up to the reporting period is below.

Table F-1 Land Acquisition for Project Site

Progress of Land Acquisition

Number of Area/People Subject for Land Acquisition

Number of Area/People completed

Area (m2) People Area (m2) People

SIL Area

Power plant 66,433 13 66,433 13

Wellpad, AR & pipeline 92,239 98 92,239 98

Others 63,348 27 63,348 27

Total 222,020 138 222,020 138

NIL Area

Power plant & AR 228,113 25 228,113 25

Wellpad, AR & pipeline 426,234 163 426,234 163

Others 331,673 76 331,673 76 Total 986,020 264 986,020 264

Table F-2 Land Acquisition for Transmission Line

Progress of Land Acquisition

Number of Area/People Subject for Land Acquisition

Number of Area/People completed

Area (m2) People Area (m2) People

Tower Foot Print 40,273 57 40,273 57

T-Line (ROW) 201,357 205 201,357 205

F. Land Acquisition and Involuntary Resettlement


17

c) Information disclosure, consultation, and participation activities

Public consultation and information disclosure were conducted during the land acquisition process. The consultation

activities were conducted in a culturally appropriate manner (using both Bahasa Indonesia and Batak language) with

Batak facilitators (inclusive of females). Land owners were well informed of the land acquisition process and SOL’s

compensation policy, prior to the signing of land acquisition agreements. All consultation process and agreements are

documented well.

d) Progress in implementation resources: staff, budget, and other resources

The land acquisition process was undertaken by SOL’s LA team which consists of External Relation, Administration,

Legal and Finance team. All documentation required in the LA process including socialization minutes, attendance,

land price agreement, and photos are well recorded. As for the transmission line ROW, SOL is using the survey and

appraisal result from independent third party Appraiser Company responsible for surveying and appraising easement

payment for the TL ROW which was assigned by SOL in prior TL ROW compensation payment process.

e) Resettlement-related grievances

There is no grievance with regards to resettlement has been logged.

(ii) Progress in Implementation of the SSCAR Corrective Action Plan

The progress of implementation of the SSCAR Corrective Action Plan is detailed in the following Table F-3.

Table F-3 Current status of Corrective Actions

Issues/Topics Corrective Actions Deliverable Timeline Current Status

Monitoring and Evaluation

Post-resettlement evaluation (e.g. 6 months, 18 months, 36 months after land acquisition.

Evaluation Report 2018 To be started

(iii) Progress of the Implementation of External Monitor’s

Recommendations/Corrective Actions

N/A

(iv) Forward Plan /Next Steps (for the next 6 months)

SOL is to acquire additional area at NIL area, NIL E1, for the purpose of new reinjection well due to lack of capacity in

the existing reinjection wells at NIL location.


18

(i) Summary of Project Activities and Social Context of the Indigenous Peoples

Plan (IPP)

In the first semester of 2016, ISP implementation focused on the continuation of some programs in Agricultural

training, health, education and also infrastructure. ISP activities in this period include coordination with local

government at the Sub district and village level as well as related government offices.

(ii) Overview of the IPP Implementation

This section will elaborate the IPP implementation from January – June 2016 with five main program activities and

stakeholders’ engagement. As explained earlier, ISP implementation in this semester was focusing on the continuation

of some activities from 2015 period which included agricultural training and distribution assistance for farmers’

groups, assistance for elderly groups through Posyandu Lansia as part of the health program activity and in education,

SOL continues to provide free English course for children starting from primary up to Junior High school level.

While for infrastructure program, activity was focused on the discussion with each Head of village to re-assess and

update the priority for infrastructure improvement in their village. Even though there have been proposed programs

for infrastructure in the ISP plan, it is important to have an update and confirmation from each village on the previous

proposed program to understand the most prioritized need in the village and also to avoid any overlapping with local

government program. This is because the new mechanism established by the Government of Indonesia for village

fund management and the new scheme for Village fund allocation which is bigger than the previous years.

As part of the stakeholders’ engagement activity, there are some activities undertaken to coordinate and

communicate the ISP activities, they are:

1. Coordination meeting with Sub District offices (both SIL and NIL area) involving Head of Sub District, newly

appointed head of villages from the affected villages. This meeting was held in January and February 2016

for SIL & NIL area respectively. This meeting discussed the implementation of ISP activities in 2015 and the

work plan for 2016.

2. Meeting with Sub District Education Office (both SIL & NIL area) on the evaluation of English course

implementation for the period of Nov 2015 – January 2016.

3. Discussion with PKK (Women’s group) at Sub District level (both SIL & NIL area) on the planning for skill

training (culinary and also other programs) for women’s group.

4. Continuous communication with each village through Head of village and communities’ groups through

village meeting and visit

5. Coordination with Health office (Regency and sub district level) on the ongoing health program and the new

program plan.

Coordination with all related stakeholders including government agencies and targeted villages will be continued

throughout the ISP implementation to ensure smooth implementation of all the activities.

The activities carried out in the first semester of 2016 is presented in the Table G-1.

G. Indigenous People


19

Table G-1 Implemented programs in the first half of 2016 summary

(iii) Progress in the implementation of the IPP components

The activities which is explained in the earlier section are fully implemented and closely monitored by SOL’s social

team. The team has to ensure that the objectives of each programs are met in accordance with the ISP set forth in

the IPP document.

a) Agricultural/Livelihood restoration

▪ Continuation of agriculture training & assistance for farmers’ group

In Nov – Dec 2015, two sessions of agricultural training in making of organic fertilizer and animal feed in two villages

at SIL area; Silangkitang and Sigurung-gurung were conducted and followed by provision of 1 unit of organic fertilizer

and animal feed machine processor for each village. These two agricultural programs have been carried out to 2016

and executed in 5 villages at NIL area and another 4 villages at SIL area.

There are two main objectives of this program activities:

1. Improving agricultural productivity by introducing the usage and self –making of organic fertilizer to the farmers

in the affected villages.

2. Promoting sustainable farming activity by using the materials available in the surrounding areas which can be

used to support agricultural activities including livestock.

Similar to the previous training, the continuation of this program was coordinated and undertaken in partnership with

North Tapanuli Food Security Office and related Sub District Office and also Bupati Office. Participants of this training

were mainly farmers which also included female. The training activity was appreciated by the Sub District Office as

well Bupati Office since promoting and improving agricultural sector is one of North Tapanuli Local Government main

programs.

As of June 2016, training and handing over the organic fertilizer and animal feed machine processor for all the affected

villages had been completed. Photos documentation can be seen in Appendix B.

No Program Focus Activities

1 Agriculture &

Livelihood

restoration

a. Continuation of training on making of organic fertilizer and animal feed b. Continuation of assistance for farmers’ group - Organic fertilizer and animal feed machine processor c. c. Distribution of assistance for the most vulnerable groups d. Skill training: Driving, embroidery, culinary (non-rice food variety) e. Assistance for PKK group (women’s group)

2 Education Continuation of free English course “English is Fun” for Primary & Elementary students

3 Health a. Continuation of assistance for Elderly Posyandu program (Posyandu Lansia) – provision of vitamins &

additional nutritional food through UPT Kesehatan (Health Office) & village midwife

b. Assistance for Posyandu Balita (children under five years old)

4 Infrastructure a. Completion of clean water piping and construction of concrete water tank at Lumban Jaean

b. Clean water piping work and construction of concrete water tank at Sibaganding (ongoing)

c. Assessment for infrastructure program at SIL area

5 Religious &

communities’

activities

a. Donations for Christmas’ celebration events, Churches, Mosques and communities’ activities at the

village and Sub District Level

b. Assistance for a family affected by hurricane in Simataniari


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Table G-2 Implemented agriculture training in SIL area

No Village Training date Hand over - 1 unit of machine of organic fertilizer

and animal feed

Number of

participants

1 Sitolu Ompu 1st Feb 2016 9th Feb 2016 53

2 Siopat Bahal 1st Feb 2016 9th Feb 2016 71

3 Pardomuan Nainggolan 18th March 2016 18th March 2016 38

4 Pardamean Nainggolan 9th May 2016 9th May 2016 ±47

Table G-3 Agricultural training activity at NIL area

No Village Training date Hand over - 1 unit of machine of organic

fertilizer and animal feed

Number of

participants

1 Simataniari 14th March 2016 14th March 2016 30

2 Sibaganding 16th March 2016 16th March 2016 56

3 Lumban Jaean 15th March 2016 15th March 2016 51

4 Janji Natogu 17th March 2016 17th March 2016 37

5 Onan Hasang 11th May 2016 11th May 2016 45

▪ Skill Training

Skill training is planned and designed as part of the ISP program based on the request of the villages during the

needs assessment in 2014. Based on the discussion and assessment done in the villages between March – May

2016, SOL’s ISP/CSR team has identified three priorities namely driving training, embroidery and culinary for non –

rice food training to be executed in this period in some of the villages.

Some of these priorities are based on the requests from village organizations such as PKK and Village Youth group.

Training plan & mechanism was communicated with Head of Villages and related village organization. It was agreed

that the village and the related organization should appoint the participants of the training giving the first priorities

to poor families, unemployed and in particular for embroidery training, individual has to have basic sewing/tailoring

skill.

Related village organizations submitted names of participants acknowledged by Head of Village to SOL. SOL

facilitated the training arrangement which covered trainers, materials/tools/equipment and assistance for

transportation in case the training is outside of the village.

Objective of these trainings is to develop local communities’ skill so that they can utilize it in the project or in other

areas outside of North Tapanuli.

Skill trainings conducted in this period is presented in Table G-4.


21

Table G-4 Skill trainings conducted in May – June 2016

No Training Area / Village # of

Participant Schedule/Period Venue Trainer team

1 Driving skill NIL/ Simataniari 10

10th June – 9th July 2016

(One-month training, 2

times a week)

Simataniari Driving training

“Community School “,

Tarutung

2 Embroidery SIL (Pardomuan

Nainggolan) 8

18th June – 18th July

(One-month training, 3

times a week)

Tarutung “ Thia Fashion” workshop,

Tarutung

3 Culinary (Non-

rice)

NIL (5 villages) &

SIL (6 villages)

± 46 (NIL)

/57 (SIL)

23rd June / 27th June

(One-day training,

participants were

divided in different

groups based on their

village)

NIL (Camat

Office) / SIL

(Pardamean

Nainggolan)

North Tapanuli Training

Centre Office, Tarutung

▪ Assistance for the most vulnerable group

For the most vulnerable group, SOL is first targeting land owners who have remaining land less than 10% from the

land acquisition and lowest income level/poorest. Data on land owners was obtained from the social survey on land

owners conducted by ERM team and also verification from SOL CSR/ISP & ER team. Based on the data from the survey

result, there are 99 land owners that fall into the category of vulnerable based on less than 10% remaining land owned

and income level. However, based on verification and actual checking by SOL’s team and also confirmation from Head

of village, there are only 34 land owners that are categorized as the most vulnerable and from the 34, SOL’s team

divided into two groups: active working group who are still engaging in farming or other activities and group that are

not actively working anymore due to their age (elderly) and/or sickness.

There are 17 land owners identified in the first category, while for the second category, there are 17 land owners. In

the second category, there was one land owner passed away and another one domiciles outside of North Tapanuli.

Thus, total number of land owners for this category is 16.

Assistance given to the second category is through Health program, “Posyandu Lansia” or Elderly program which

provides vitamins and additional nutritional food for the elderly in each village. This program has been running since

November 2015 to date.

While for the first category, actual needs assessment & discussion with each individual land owners were made to

have better understanding of the most effective form of assistance to be delivered. This mechanism was done to build

a two-way communication between SOL & the group and so that the individuals will have more responsibility on the

assistance since it is proposed by them.

The type of assistances delivered are presented in Table G-5.

Table G-5 Type of assistance delivered for the most vulnerable group

No Land owner Village Type of assistance Assistance delivered

1 Kasih Sitompul Silangkitang Livestock (5 pigs), animal feed & vitamins,

vaccines and zinc roof for pigpen 27th Feb 2016


22


2 Riana Tambunan Silangkitang

Materials to construct additional building

to the existing small coffee shop that she

owned and also the fund to construct the

building, additional wares for the coffee

shop

19th Feb -10th March 2016

3 Redia Simatupang Silangkitang Livestock (5 pigs), animal feed & vitamins,


4 Sondang Sitompul Sigurung-gurung Cooking equipment and materials/wares

for her small coffee shop 19th Feb 2016

5 Elimar Sitompul Sigurung-gurung Livestock (5 pigs), animal feed & vitamins,


6 Timoria Simorangkir Sigurung-gurung Livestock (5 pigs), animal feed & vitamins,


7 Dapotasi Siregar Janji Natogu Livestock (5 pigs), animal feed & vitamins,


8 Heberlin Matondang Sibaganding Livestock (5 pigs), animal feed & vitamins,

vaccines and zinc roof for pigpen 8th March 2016

9 Dildumar Napospos Lumban Jaean Livestock (5 pigs), animal feed & vitamins,


10 Maju Sitompul Lumban Jaean Livestock (5 pigs), animal feed & vitamins,


11 Jamanti Hutabarat Lumban Jaean Livestock seed (200 duck), vitamin &

animal feed, net 3rd March 2016

12 Maloder Sitompul Simataniari Livestock seed (200 chicken), vitamin &



23


13 Rojakat Sitompul Janji Natogu 1 unit of hand tractor for farming activity 22nd March 2016

14 Tiur Sihombing Simataniari Livestock seed (200 chicken), vitamin &


15 Rislini Nainggolan Simataniari Livestock seed (2000 gold fish seed),

animal feed & net 3rd March 2016

16 Gomal Lumban Tobing Sibaganding Materials, Cooking equipments and wares

to open coffee shop near 19th Feb 2016

17 Romanna Panjaitan Lumban Jaean Materials for opening small coffee shop

March 2016 (still partly

delivered because the location

is changed and awaits further

information from the land

owner

Table G-6 Assistance delivered to the most vulnerable group

Timoria Simorangkir/livestock/ Sigurung-

gurung

Riana Tambunan/additional building/

Silangkitang

Rojakat Sitompul/ Hand tractor/Janji

Natogu

▪ Assistance for women’s group (PKK)

Assistance program for women in the affected villages are channelled through PKK groups which play important role

for the implementation women’s development program at the village level. There are some assistances program that

have been undertaken to some of the PKK groups and they are based on the proposals and inputs given to SOL.

Table G-7 Assistance program for women’s group (PKK)

No Village Type of assistance Remarks

1 Silangkitang a. Equipment/tools for cooking

b. Provision of uniforms

Done

2 Sigurung-gurung Equipment/tools for cooking Done


24

No Village Type of assistance Remarks

3 Pardomuan Nainggolan Provision of uniforms Done

b) Education

Main activity in education program is the continuation of “English is Fun” program which provides free English course

for primary and elementary schools at the affected villages. This program started in November 2015 and the children

are very enthusiastic about this program.

Based on the program schedule, after the first three months of implementation (Nov- Dec 2015), evaluation on the

program was carried out involving Sub District Education Technical Unit Service Office, Headmasters from

participating schools’ office on 26th January 2016. The evaluation concluded that the program has been running well

and deemed important, therefore SOL was requested to continue the program. It is agreed that SOL will continue the

program in 2016 and subject to evaluation with all related parties.

The English course is conducted in 8 locations of the project affected villages. Total number of students participated

as per June 2016 are as follows:

Table G-8 English is Fun program implementation

No Area Schools Schedule Remarks

1 SIL SD Pardamean Nainggolan Monday & Thursday Ongoing

SD Silangkitang Monday & Thursday Ongoing

SMPN Pahae Jae Wednesday & Friday Ongoing

2 NIL SD Simataniari Tuesday & Saturday Ongoing

SD Sibaganding Tuesday Ongoing

SD Lumban Jaean Saturday Ongoing

SD Janji Natogu – Onan Hasang Tuesday & Saturday Ongoing

Table G-9 “English is Fun Program” activities

Evaluation with Pahae Jae Sub District

Education Technical Unit Service Office

English course Exam announcement

result

Evaluation with Pahae Julu Sub

District Education Technical Unit

Service

c) Health

• Posyandu Lansia (Elderly Program)

Health program continues to carry out the existing program which is assistance for Elderly through Posyandu Lansia

by providing the vitamins and additional nutritional food. In some of the villages, the program has shown positive


25

impacts with visible indicator is the increase number of elderly people participated and also the enthusiasm expressed

by the elderly during the activity especially the weekly routine named “Senam Lansia”.

In order to strengthen the program and also socialize the program to the elderly groups, a joint prayer meeting for

elderly people from six villages at SIL area was undertaken on 29th February. This event was attended by Head of

Pahae Jae Sub District, Sub District Health Office, and Head of villages.

This was the first event held for elderly people in the area and was appreciated by the Head of Sub district. It is a good

form of forum for Elderly people to express themselves and socialize. The event has resulted in the forming of elderly

people committee in SIL area and considering the positive feedbacks from all the participants, SOL is planning to

continue the program quarterly.

Table G-10 Posyandu Lansia as of June 2016

No Area Village Number of Elderly

participated Schedule Remarks

1 SIL Silangkitang 31 Wednesdays Once a week

Sigurung-gurung 10 Sundays Twice a month

Pardamean Nainggolan 59 Sundays Once a week

Pardomuan Nainggolan 23 Fridays Once a week

Sitolu Ompu 40 Sundays Twice a month

Siopat Bahal 15 Sundays Once a week

2 NIL Simataniari 30 Sundays Once a week

Lumban Jaean 24 Sundays Three times a month

Sibaganding 30 Sundays Twice a month

Kel. Onan Hasang 12 Sundays Twice a month

Janji Natogu 24 Sundays Twice a month

Total 298

Table G-11 Posyandu Lansia Activities

Joint Prayer meeting, elderly group from 6 villages

at SIL area

Routine activity “Senam Lansia” at Silangkitang


26

• Posyandu Balita (Toddler Program)

Second main activity in health program is the assistance for strengthening the existing government program,

Posyandu Balita, or healthcare service unit/post for children under five years old. SOL is giving a quarterly assistance

for Posyandu Balita in 11 targeted villages consisting 5 villages at NIL area and 6 villages at SIL area.

Similar to the scheme done in Posyandu Lansia, assistance is channeled and managed by the village midwife with the

monitoring from Sub District Health office and SOL’s team.

Table G-12 Posyandu Balita as per June 2016

No Area Village Number of

Balita Schedule Remarks

1 SIL Silangkitang 49 Wednesdays Once a week

Sigurung-gurung 46 Wednesdays Twice a month

Pardamean Nainggolan 98 Wednesdays Twice a month

Pardomuan Nainggolan 50 Wednesdays Once a week

Sitolu Ompu 30 Wednesdays Twice a month

Siopat Bahal 54 Wednesdays Three times a month

2 NIL Simataniari 40 Sundays Once a week

Lumban Jaean 40 Sundays Three times a month

Sibaganding 31 Sundays Twice a month

Kel. Onan Hasang 49 Sundays Once a week

Janji Natogu 39 Sundays Twice a month

Total 526

Table G-13 Posyandu Balita in the village

Activity in Simataniari

Activity in Silangkitang

Activity in Sigurung-gurung


27

d) Infrastructure

There are five main activities carried out as part of the infrastructure program in this period of reporting. They are:

a. Completion of clean water piping work (approx. 9 km) in Lumban Jaean,

b. Construction of 2-unit concrete water intake/tank at Lumban Jaean,

c. Clean water piping work (approx. 9 km) in Sibaganding

d. Construction of 2 units concrete water intake/take at Sibaganding

e. Assessment of proposed infrastructure program in 6 villages at SIL area

Clean water piping work and construction of 2 units of concrete water tank at Lumban Jaean has been successfully

completed by mid of May 2016. There had been some delays and change of schedules in the process due to some

issues related with the condition of piping routes, coordination with the village, etc. Nevertheless, completion of this

program has delivered a significantly positive impact on the local communities’ lives in the village for it has helped to

increase the supply and availability of clean water which was one of the main issues faced by the village.

The program is a joint effort between SOL, HAL and Hyundai by providing all the pipes, supporting materials and fund

contribution for the work. In the implementation, SOL also requested the village to provide their contribution by having

“gotong royong” or joint effort /mutual work to build the sense of ownership and common responsibility between the

local communities towards the program.

The completed work had been handed over from SOL to the village and it was explained and agreed that full

responsibility of the operation & maintenance of the piping & concrete water tank was fully on Lumban Jaean

Village/local communities.

Progress of the activities can be seen in Table G-14.

Table G-14 Progress of infrastructure program at SIL and NIL

No Village Activity Progress

1 Lumban Jaean a. Clean water piping installation 100% completed, Handover ceremony attended by

Sub district Office, HDEC & HAL conducted on 20th

May 2016

b. Construction of 2 units of concrete

water tank at the village

2 Sibaganding a. Clean water piping installation 100% completed

b. Construction of concrete water tank

at the source & the village

Ongoing, 15 %

3 SIL (6 affected villages Assessment and survey of the village

proposed program

Ongoing, 80%

Table G-15 Clean water piping program at Lumban Jaean

Water test, April 2016

Installed water pipe

Handover ceremony, May 2016


28

e) Religious activities and local communities’ groups

The activities in this program were the assistance/support given to the churches/mosques and local communities’

activities in the form of donations for the following activities:

a. SIL area: Hand over of assistance, 1 unit of desktop to Pahae Jae Sub District Office

Handover of assistance, 1 unit of desktop to Pahae Jae Sub District Police Office

b. NIL area: Hand over of assistance, 1 unit of desktop to Pahae Julu Sub District Office

c. Various local communities’ groups activities from the village, Sub District and Local government/Regency level.

The assistances are given based on the proposals submitted by related local communities or religious’ organization to

SOL office.

(iv) Summary of Noncompliance and Corrective Action Plans related to the IPP

N/A.

(v) Progress in the Implementation of External Monitor’s

Recommendations/Corrective Actions

N/A

(vi) Forward Plan/Next Steps for the next 6 months

ISP activities for the second half of 2016 will be implemented based on the 2016 work plan as set forth in the below

table.

Table G-11 Program plan for second semester of 2016

No Program / Activities

Year 2016

Q3 Q4

7 8 9 10 11 12

1 Employment

1a Recruitment of labors from Land owners in accordance with skill & capabilities

1b Monitoring & collecting reports from the contractors/sub contractors on the labor recruitment

2 Infrastructure - Improvement of proposed public facilities

2a Completion of piping program in Sibaganding & Lumban Jaean

2b Assessment on first priority for public facilities improvement


29


Year 2016

Q3 Q4

7 8 9 10 11 12

2c Disbursement of public facilities improvement assistance

3 Education

3a Evaluation on the implementation of English course for Elementary and Junior High School at SIL & NIL area

3b Coordination and discussion with UPT Pendidikan & schools

3c English course for Elementary and Junior High School

3d Define the criteria for scholarships (Senior High School to University)

3e Coordinate with UPT Pendidikan on Scholarship program

3f Implementation of Scholarship program at SIL & NIL

4 Agricultural/Livelihood Restoration

4a Assistance for the most vulnerable land owners (with remaining land less than 10%)

4a.1 Monitoring and evaluation of the assistance program

4b Agricultural/Skill training

4b.1 Coordination with related parties and preparation for the training

4b.2 Implementation of Skill training program ` `

4b.3 Monitoring & follow up effectiveness of the training program / participants

5 Health

5a Capacity building for Posyandu cadre in 11 affected villages

Meetings/briefing for Posyandu cadre on community health awareness (personal hygiene, nutrition, baby and childhood care).

5b Support for village health program (Posyandu Balita & Posyandu Manula)

5c Support the early child nutrition development program through Posyandu Balita


30


Year 2016

Q3 Q4

7 8 9 10 11 12

5d Support for Elderly Health program through Posyandu Manula

6 Religious Activities, Cultural & Art

6a Evaluation on the disbursement of donation and SOP

6b Disbursement of assistance/ donations for religious activities

6c Support for Cultural & Art related activities


31

(i) Local labour recruitment commitments

SOL is committed to prioritize use of local labour resources in accordance with the Labour Management Plan. The

Contractors - whose plans are aligned with SOL’s - share a similar commitment and approach in this aspect.

a) Project procedures for hiring

The community has high expectations in relation to gaining employment with the Project. In response, job boards

have been deployed in each village. This increases the transparency of the hiring process, as well as reduces the

possibility that some villagers are unaware of available job openings.

b) Requirements on workers recruitment with information on origin of migrant or

local workers (NIL, SIL, other areas), position/work occupied, and with sex-

disaggregation (SOL and contractors)

The Project actively monitors the recruitment status of the Indonesian, Batak and women workers. Please see Table

H-1 below for the labour breakdown of the Project.

Table H-1: Recruitment status as of June 2016

Item SOL HAL HDEC

Labour

Skilled 140 601 1072

Semi-skilled 33 92 221

Unskilled 22 109 595

Total 195 802 1888

Batak Women From Project Affected Area

Batak Women From Project Affected Area 9 33 38

Indonesian/Foreign Manpower

Local 61 288 956

Indonesian (other than local people) 111 503 834

Foreigner 23 11 98

Women Employed

Women Employed 32 43 64

c) Tracking of recruitment of women personnel (SOL and contractors)

The current status of the women personnel recruitment for SOL and its contractors is shown in Table H-1 above.

H. Local Recruitment, Labour Relations and Conditions


32

(ii) Nature of labour dispute or grievance, including conflicts between groups

No labour disputes or grievances have been reported.

(iii) Legal requirements, permit conditions and renewal requirements

Please see Table C-1.

(iv) Authorities in charge of investigation/recording


(v) Media, civil society organizations/NGOs, or community reactions (if any)


(vi) Corrective actions, deadlines, identification of responsible parties


(vii) Labour relations and living conditions for construction labour force

There are currently three (3) operational worker camps and nine (9) rented houses for workers accomodation.

Please refer to Appendix A for description on each respective camp and rented house.

SOL and its contractor are mindful of potential social tensions associated with community pressure due to the influx

of workers. SOL is keeping track of the labour accommodation situation, and would progressively increase workers’

camp’s capacity as necessary.


33

(i) Staff capacities in environmental management (as relevant) including number

and suitability of environmental management personnel

With regards to SOL’s staff capacity, our environmental employees are:

- One (1) Health, Safety and Environment (HSE) Manager

- Two (2) Environmental Engineers

- Two (2) Environmental Officer

- One (1) Health and Safety (H&S) Engineer

- One (1) ESMS Engineer

- One (1) OHS Officer

- One (1) Administrator.

(ii) Degree of awareness of (a) environmental management, (b) health and safety,

(c) environmental laws and regulations

As part of the Project financing requirements, SOL is required to put in place a comprehensive ESMS to govern the

Project’s development and activities. One of the key component in ESMS is the “Organisational Capacity &

Competency”, which states that the key project personnel should be highly aware and sufficiently competent to

implement the ESMS.

(iii) Training conducted, if any, including the number of sessions, topics covered

and percentage of workforce trained

Please refer to part (v)(a) and (v)(b) below.

(iv) Needs assessment of environmental management capacity (as relevant)

No particular needs of improving environmental management capacity currently identified.

(v) Awareness level of SOL and contractors’ field personnel

a) Training conducted on environmental management, health and safety,

environmental laws and regulations, emergency response, preventative

measures

SOL and its contractors regularly conduct training with the topics such as:

- Basic safety training

- First aid

- Use of fire extinguisher and fire fighting

- Permit to work

- Emergency drill evacuation

I. Environmental Capacity


34

- Use of Self Contained Breathing Apparatus (SCBA)

- Socialization of the biodiversity action plan

- Food handling

- H2S induction

- Spill response

- Hazardous waste management

- Devensive Driver Training (DDT)

- Working at Height Training

- Fire FightingTraining

b) Number of SOL and contractors’ staff trained

Almost all of the staff attended the training program with topic mentioned above.


35

(i) SOL Social team / External Relation Team– number, competence and

adequacy of staff who are implementing the IPP and RP

SOL employs a Site Admin Manager who supervises the ER field team as well as the CSR team.

The ER field team consist of one (1) ER supervisor, one (1) female ER admin and six (6) ER staff/personnel (consisting

of one female and five male).

The CSR team consists of one (1) (female) CSR Supervisor, and one (1) male and one (1) female CSR staff.

(ii) Human resources department – number and adequacy of staff to monitor

labour and working conditions

SOL employs a Human Resources and General Affairs Manager (HR & GA Manager), a Deputy HR Manager, a Senior

Human Resources Officer and a Human Resources staff member.

(iii) Training conducted, if any, including the number of sessions, topics covered

and percentage of workforce trained

No social specific training was conducted.

J. Social Management Capacity


36

(i) Details of consultation and participation activities (with gender disaggregated

data), including, where applicable, local community, women’s issues and

concerns, NGOs, cultural and social groups, leaseholders, and other

stakeholders, including affected groups

SOL’s social team (ER & CSR team) is conducting the stakeholders’ engagement through close communication and

coordination with various stakeholders including the affected communities. Some of the means of communications

are the village monthly meeting, bi-weekly meeting with the main contractors/sub-contractors’ ER team and also ad-

hoc meetings/coordination with the related local government offices/agencies.

The activities also include socialization prior to commencement of project activities and progress of project activities

to the local communities.

Socialisation and stakeholder engagement activities carried out during the reporting period are as presented in Table

K-1.

K. Stakeholder Engagement/CSR Activities

37

Safeguards and Social Monitoring Report 5th Reporting (Monitoring period: January-June, 2016)

Table K-1 Socialization (Jan – June 2016)

No Activities Date Stakeholders/ attendees Description

1 Praying and blessing ceremony

before spud in activity at NIL 3

January 09, 2016 Local communities, Head of Villages,

Community elders, USPIKA, Halliburton , EPI,

& ER SOL

Informing the community about the well test process

and impact to build the safety awareness regarding

the well test in SIL area

2 Socialization on Hyundai of

Subcontractors (PT HANKOK)

February 02, 2016 Local communities, Head of Villages,

Community elders, USPIKA, SOL, HYUNDAI &

PT.HANKOK

Explanation to local communities about the HVAC

work that will be conducted by the Hyundai’s

subcontractors (PT HANKOK)

3 Praying ceremony & Socialization

before spud in at SIL 3

February 10, 2016 Local communities, Head of Villages,

Community elders, USPIKA, Halliburton, PRA

& ER SOL

Message disseminated thru praying to get local

people (elders, priest and local leader) blessing for

the spud in.

4 Village monthly meeting at

Silangkitang & Sigurung-gurung

March 14, 2016 Local communities, Head of Villages,

Community elders, CSR & ER SOL

Explanation to local communities about CSR Program

or Village Discussion


Pardomuan Nainggolan &

Pardamean Nainggolan

March 15,2016 Local communities, Head of Villages,




6 Village monthly meeting at Siopat

Bahal, Sitolu Ompu, Sibaganding &

Lumban Jaean






Simataniari





8 Village monthly meeting at Janji

Natogu






Onanhasang






Subcontractors (SKG)

April 08, 2016 Local communities, Head of Villages,


SKG

Explanation to local communities about the slope

protection works as method oil nailing and shotcrete

work that will be conducted by the Hyundai’s

subcontractors (PT SKG)


Subcontractors (PT CBN))



PT CBN

Explanation to local communities about the pipe line

brine injection installations work that will be

conducted by the Hyundai’s subcontractors (PT CBN)

38


No Activities Date Stakeholders/ attendees Description


Subcontractors (PT Karang Mas

Unggul - NIL)


Community elders, USPIKA, SOL, HYUNDAI, &

PT Karang Mas Unggul - NIL

Explanation to local communities about the steel

structure erection work that will be conducted by the

Hyundai’s subcontractors (PT Karang Mas Unggul)


Silangkitang

April 25, 2016 Local Communities, Head of Village,

Communitiy elders, Sub-distric, HDEC,

HALLIBURTON, CSR & ER SOL

Explanation to local communities about Labor

Informations


Sigurung-gurung





Informations


Pardomuan - Nainggolan

April 27, 2016 . Local Communities, Head of Village,




Informations


Pardamean – Nainggolan &

Sibaganding





Informations


Simataniari





Informations

18 Village monthly meeting at Lumban

Jaean

May 20, 2016 Local Communities, Head of Village,




Informations


Subcontractors (PT CBN)

May 25, 2016 Local communities, Head of Villages,


PT CBN

To Explain to local communities about the pipe line

brine injection installations work that will be

conducted by the Hyundai’s subcontractors (PT

CBN)_as requested again by Pardamean Village


Sigurung & Lumban Jaean

June 21, 2016 Local Communities, Head of Village,

Communitiy elders, Sub-district (USPIKA), CSR

& ER SOL

Village Discussion


Sigurung & Lumban Jaean

June 23, 2016 Local Communities, Head of Village,

Communitiy elders, Sub-district (USPIKA), CSR

& ER SOL

Village Discussion


39

(ii) Details of approach/methodology on addressing the concerns and issues

raised at consultations

Socialization activities were conducted in both Bahasa Indonesia and Batak by SOL’s External Relations team.

Following a presentation on the Project, there was a question and answer (Q&A) session during which comments and

queries can be raised. When appropriate and possible, some of these were given responses immediately, while others

were logged and may require follow up. Comments and queries along with SOL’s responses during these sessions

were summarised and recorded for future reference.

(iii) Describe efforts to promote community relations and local development for

people of the project area

In order to have effective communication and strengthen the coordination between all related stakeholders, SOL is

putting more efforts to build communication channels and tools such as:

a. Village monthly meeting

b. Involvement of local government elements such Camat (Head of Sub District), MUSPIKA (district leader forum),

village elders and related government offices in the socializations or meetings with local communities

c. Partnership & cooperation with local government offices in the ISP activity such as Kantor Badan Ketahanan Pangan

in the agriculture program, Health Office Unit at the Kecamatan Level in the Health program, Local institution in the

Education program and also Education Office Unit.

d. Mass media coverage on programs/activities that have been performed by SOL and also participation in

communities’/government events with extended coverage which will help to socialize SOL’s project and existence and

its activities to a broader community at the village, Sub district and Regency level.

(iv) Implementation of grievance mechanism

a) Grievances recorded

From Jan – June 2016, 16 grievances were recorded; 4 cases at NIL & 12 cases at SIL area. They are mainly related to

impact from project construction activities and environmental issues).

As of June 2016, 6 out of 16 grievances were closed, while 10 cases were open. Summary of the grievance log is

presented in below table.

Table K-2 Grievances recorded Jan – June 2016

Remarks Log January - June 2016 Total

SIL NIL SIL + NIL

Recorded grievances 12 4 16

Closed grievance 3 3 6

Open 9 1 10

Outstanding grievances (that had been received before the reporting period but remained open) are 4 grievances.


40

b) Types of complaints and status of resolution

1. Similar to the previous grievances received and recorded, the cases received in Jan – June 2016 are still mainly

related to impact of project construction activities such as erosion, siltation, etc. and also some

environmental/social related issues.

2. 10 open grievances have been responded and surveyed by related parties such as SOL, HDEC. Some of them will

be compensated in August 2016 and cases that require technical solution have been discussed and itsi

implementation is still on progress.

3. As for technical solution for major cases presented in the last reporting period, the status can be seen in below

table.

Table K-3 Status of technical solution for some major cases from previous reporting

CATS # Log # Location

Technical Solution Status/ Remarks NIL/ SIL

# 7 58 under SIL-D , Lubuk Latong-

Repair and normalize the natural drainage canal (Lubuk Latong under SIL-D)

Closed

# 9 60 SIL-1, Powerplant

Construct pathway from security post to Sibara-bara river bridge (±800 m)

Closed

# 10 62, 66,91, 113 Under SIL-2

a. Repair existing culvert with bigger double pipe

Closed b. Normalization of drainage by Multifab /PLN under SIL-2

c.Repair of drainage (along access road, before the bridge)

# 15.2 70.a&b, 74.1a, ,104 #2, 147

Under NIL Powerplant

Install concrete drainage Siacimun river at Siangir (± 600m) from NIL Powerplant to bridge Siasimun river.

Closed

c) Effectiveness of grievance mechanism

SOL has been working closely together with the Contractors in terms of receiving and closing out grievances from the

community in accordance with the ESMP (including the grievance mechanism). Records of the current Grievances Log,

the Grievance Form and the close out register have been developed in accordance with requirements of the

grievances mechanism. Grievances received are followed up and closed out in due course.

(v) Project procedures for acquisition of goods and services

As much as possible, SOL and its main contractors, HDEC and HAL, procure their required goods and services locally.

This has been the commitment socialized to all the main contractors as well as its sub-contractors.

.


41

(i) Air and Odour

SOL controls air quality by manage dust and H2S.

Within this reporting period, SOL managed the dust by:

1. Road watering during dry event in the morning and in the afternoon depends on the road condition (Table L-1).

At SIL area, his measure was conducted at the connecting road between the well pads with the power plant, also

road around Silangkitang village, Sigurung-gurung village, connecting road to SIL-2, connecting road at SIL area to

power plant. Meanwhile at NIL are, road watering was conducted at Simataniari village and vicinity area,

connecting road to NIL Power Plant, connecting road to NIL-2n and connecting road to WJR-1.

2. Project vehicle speed control: 20-40 km/hour.

3. Speed control program by using speed-gun in the project vicinity area.

4. Washing vehicle wheels prior entering public road (Table L-2).

5. Access road maintenance.

Table L-1 Road watering during dry event

Table L-2 Vehicle wheels washing

In this period, dust monitoring was undertaken in March and June 2016 at three (3) villages (i.e. Sampil Pil,

Silangkitang and Sigurung-gurung) and seven (7) points along access roads (two access roads at SIL area and five

access roads at NIL area). All of the test results are below Total Suspended Particles (TSP) limit prescribed within local

standards.

L. Issues, Status of Implementation of Mitigation Measures in the Environmental Management Plan and Compliance with Environmental Qualities and Standards (national and international, as relevant) and Environmental and Social Requirements


42

SOL manages its H2S by:

1. Socialization to community when new activities take place such as drilling activities and well testing.

2. Barricaded well location and made safe zone boundary for community.

3. Personal Protection Equipment (PPE) are provided for the workers (i.e. masker).

4. H2S detector was installed during well testing equipped by alarm (10 ppm – indicator lamp turns on; 20 ppm –

siren goes off), wind sock was also installed to indicate the wind direction, blower and sign boards were also

installed.

5. No entry sign was installed during well testing (authorized person only).

6. H2S evacuation scenario was prepared for community.

Table L-3 Signboard at well pad

Table L-4 Warning sign at well pad

In this reporting period (Semester 1-2016), those measures were conducted in NIL-3N, SIL-3 and WJP-1N.

H2S monitoring was carried out weekly at the well pads and in the villages (close to the drilling activities) throughout

January to June 2016. A total of nine (9) villages (five villages in SIL area and four villages in NIL area) and six (6) well

pads were monitored (two in SIL area and four in NIL area). However, it should be noted that the number of monitoring

locations throughout the period fluctuated depend on construction activities.

SOL appointed an external consultant to implement the H2S quality monitoring and during this period of monitoring,

all readings showed compliance with the local standards.


43

Table L-5: H2S and Noise monitoring in NIL area

Source: ERM RKL-RPL, January 2015

Monitoring of H2S for Occupational Health and Safety has been recently improved with the purchase and deployment

of new portable H2S detectors (one unit Aeroqual Series 200/300/500 and one-unit Detector Multigases ALTAIR® 4X).

These were used in the NIL area where the ambient H2S concentration is noted highest. This device also installed at

the drilling rig as the “fixed” H2S detection system.


44

Table L-6: Gas meter readings at control room Table L-7: H2S sampler at the drilling rig

(ii) Water (surface and ground water)

In this reporting period (Semester 1-2016) there were nine (9) locations. The monitoring was conducted in March and

June 2016. The result shows that none of the samples have elevated concentration compared to the threshold

stipulated in Government Regulation No. 82 Year 2001 regarding Water Quality Management and Water Pollution

Control class II.

Monitoring was also conducted on the community wells and spring water. There were three (3) community wells and

one spring water monitoring locations (two community wells in SIL area, one community well in NIL area and one

spring water in NIL area). All readings showed compliance with the local standards.

(iii) Waste generation and management

a) Wastewater

The sources of wastewater on the Project are:

- Domestic wastewater from workers’ camp

- Wastewater from concrete batching plant

As of the end of the reporting period, three operational worker’s camps (HDEC, and two Halliburton camps) are still

utilized. All worker camps are using on-site septic system for the wastewater generated.

The concrete batching plant has a washing bay (concrete pit), as well as perimeter drains to channel the turbidity

water (from washing of concrete handling vehicles and/or equipment) into a settling pond, prior to discharge.

b) Solid and hazardous waste

All solid and hazardous wastes are disposed in accordance to Indonesian legislation. A hazardous waste storage facility

has been constructed, and the permit for temporary storage of B3 waste (in accordance with hazardous waste

categorisation in Indonesia) was obtained in February 2015.


45

Table L-8: New Hazardous Waste Storage Facility

The recent “Government Regulation No. 101/2015 related to Hazardous Waste Management”, dated 17 October

2015, states that drilling cuttings and mud waste produced from offshore exploration using water- based mud are

classified as non-hazardous waste. Whilst there is no explicit mention of on-shore geothermal drilling activities, the

drilling waste of the Project is considered of similar nature as it is derived from water-based drilling mud. After getting

notification letter from EBTKE, SOL uses the pit in SIL-3 & NIL-3 as drilling cutting disposal pit.

Spill response plan and land contamination mitigations (eg secondary containment) are addressed within the relevant

management plans. SOL will seek to implement these measures, including bunding where necessary, as the Project

develops.

(iv) Biodiversity and habitat

- Socialization of BAP has been continually conducted to workers and visitor through induction.

- For the reporting period, camera trap for the purpose of primate survey has been installed since March 2016 to

August 2016, it is part of annual primate survey.

- In the Semester 1-2016 there was no clearing activities.

(v) Noise and vibration

Noise management conducted by SOL are:

1. Construction vehicle management;

2. Speed control (maximum 40km/hour);

3. Silencer/muffler installation to reduce noise during well testing;

4. Personal Protection Equipment (PPE) are provided for the workers (i.e. earmuff);

5. Install ‘No Entry’ symbol for those who do not have authorization during well testing;

6. Socialization to community when new activities took place such as drilling activities and well testing;

7. Gradual well opening during well testing to reduce noise source;

8. Good communication with community during well testing to understand noise impact.

On top of management, SOL also conducts weekly noise monitoring at well sites and nearby villages during

production tests; and quarterly noise monitoring at well sites and nearby villages throughout construction phase.

The results show monitoring carried out weekly throughout January to June 2016. A total of eleven (11) villages and

six (6) well pads were monitored. However, it should be noted that the number of monitoring locations throughout

the period fluctuated depend on construction activities.


46

All of the results (i.e. aggregated for a 24 hours’ average, according with Indonesian regulations) at the receptors (set

at the villages) show compliance with the local standards (55 dB). The compliance is checked through the individual

readings at 10 minute intervals within day/night time measurement periods for the previous monitoring period.

During this period, the noise result generally show compliance to the standards set by government regulation (KepMenLH No. 48 of 1996) of 55 dB, and to International standard for the day time (55 dB). Evaluation of noise monitoring in SIL and NIL area indicated that only one reading exceeds the quality standards set by the government (at Sigurung-gurung village on 4th week of January 2016).

(vi) Occupational health and safety

a) Training programs carried out

SOL and its contractors regularly conducts training which cover topics such as:

- Basic safety training

- First aid

- Use of fire extinguisher and fire fighting

- Permit to work

- Emergency drill evacuation

- Use of Self Contained Breathing Apparatus (SCBA)

- Socialization of the biodiversity action plan

- Food handling

- H2S induction

- Spill response

- Hazardous waste management

- Devensive Driver Training (DDT)

- Working at Height Training

- Fire Training

b) Emergency situations and response

SOL and its Contractors have a training plan which includes First Aid, Emergency Response and Fire Fighting. The

appropriate staffs are expected to be trained in the respective courses. Currently, SOL (and its Contractors) also has

a roster of three (3) doctors and three (3) paramedics/nurses for the Project.

A Project level Emergency Response Plan (ERP) has been implemented and site specific procedures have to be

developed. It will include a site plan, which showing the mustering area and the evacuation route for each well pad.

(vii) Community health, safety and security

A Community Health & Safety Plan has been implemented. Regarding H2S release, SOL conducts weekly H2S ambient

monitoring at both of the areas surrounding the well pads as well as community receptors. Detailed procedures

addressing community safety in event of an H2S release incident are under review and will be implemented in

coordination between SOL and the contractors.

(viii) CO2 emissions by the Projects

As a good practice, the Project is keeping track of the following during the construction phase:

- Fuel consumption

- Electricity usage


47

- Vegetation cleared

Project figures (i.e. fuel consumption) relating to CO2 emissions are as shown in Table L-9 below.

Table L-9: Fuel consumption and electricity usage (January-June 2016)

Period

Fuel Consumed (m3) Electricity (kWH)

HDEC HAL HDEC HAL

Jan-16 174.94 445.79 667.6 -

Feb-16 203.45 483.60 837.1 -

Mar-16 218.82 726.23 376.3 -

Apr-16 205.02 561.23 398.6 -

May-16 213.70 615.83 420.2 -

June-16 192.41 380.87 110.00 -

Total 1,208.34 3,213.55 2,809.80 -

The vegetation cleared areas in this reporting period are at NIL power plant, Access Road 5 and the WJP-1 well pad.

(ix) Earthquake occurrences/incidences (seismicity)

No major earthquakes were recorded for the reporting period.

(x) Environmental Management Plan

SOL has been implementing an ESMP. The Contractors plan alignment was completed, whereby Contractors had in-

principle agreed to adopt SOL’s ESMP and materially aligned the relevant documents to SOL’s standards.

(xi) Environmental Monitoring Results and assessments

During Semester 1 of 2016, SOL continuously conducted the prescribed environmental monitoring such as air quality

(dust or Total Suspended Particles), noise levels, ambient H2S, surface water quality and groundwater quality. In

general, results meet the standards stipulated by the Indonesian Government. However, there have been slight

exceedance in H2S concentrations at several well pads. This is likely due to natural emissions from the fumaroles.

(xii) Findings and recommendations of ISO 14001 and OHSAS 18001 audit

No ISO and OHSAS audit has been planned or conducted during this reporting period.

(xiii) Problems encountered and action plan for the next reporting period

Currently, there are several on-going issues, which SOL is actively addressing. These include:

- Commissioning activities

- On-going discussion with the various stakeholders to finalise the biodiversity offsetting, whereby SOL is actively

exploring options.

- On-going work to finalise the details of the H2S community warning system.

- Anticipation that noise could potentially be an issue as production testing is scheduled to commence at more

populated area (SIL). SOL will monitor the situation and handle grievances that might arise.

(xiv) Other information and feedback

None to be reported.


48

Appendixes

Appendix A. Workers’ Accommodation _____________________________________________________________________ 49 Appendix B. Implemented IPP related activities that provide infrastructural, agricultural, educational and health benefits to

local communities. ___________________________________________________________________________ 60 Appendix C. Potential Non-compliances and Recommended Actions ______________________________________________ 66 Appendix D. Land Acquisition – SIL-1 – SIL-2 Brine Injection and Siaccimun River (NIL Area) ____________________________ 68


49

Below tables show the details of HDEC, HDEC Subcontractor camp and HAL’s camps.

Table App. A-1: HDEC Camp

No. Item Description of workers’ camps

1 Location Located at SIL-D

2 Size 14,500m2

3 Land Acquisition Leased

4 Capacity 40 locals, and 66 Koreans

5 Construction January 2015 and constructed by PT. Powertech as Hyundai Subcontractor

6 Travelling to Work The camp is only 10 minutes from worksite. Workers start to leave camp at 06.45 am and are transported by bus.

7 Facilities Management The camp is managed by a contractor.

8 Practice for charging for accommodation

No, the worker doesn’t need to pay for accommodation and facilities, such as: food, transport, and electricity.

9 Criteria for using the accommodation

No criteria to get accommodation. Provided to all staff

10 Code of Conduct Yes, there are rules installed in the camp. This rule installed on the wall.

11 Personal Documents Yes

12 Grievances No, not yet

13 Minimum amount of space Indonesian staff : Living space allocated 2~3 employee to 3m x 4m

Korean staff : Living space allocated 1 employee to 3m x 3m

14 Provision Indonesian staff : bed, pillow, blanket, locker, fan

Korean staff : bed, pillow, blanket, locker, Air conditioner, refrigerator

15 Sanitary Indonesian staff : Man : 6 shower facility/8 toilet

Woman : 3 shower facility / 3 toilet

Korean staff : 1 bath room(with toilet) were provided to each of employee

16 Laundry provided

17 Ventilation The main mode of ventilation is window

18 Food Yes, but no provisions for diet restriction due to religion. There are 4 m spaces between cooking and eating

19 Water Cooking using aqua gallon. Washing and showering using ground water

20 Leisure Television, Gym (table tennis, fitness), internet

21 Security Fence was installed around comp. 9 person Security guards were designated

22 Gender Segregation Females and males separated into different rooms and toilets

23 Emergency Response Plan - List of emergency contact already informed in ID Card - There is muster point near security post if any emergency event - There are 25 fire extinguisher in base camp

24 Fire Prevention & Fighting Yes, There are fire extinguisher provided and already conducted fire drills

25 Medical SOS staff stay the camp and Multi first aid kit was equipped in ambulance

26 Sewage Bio septic system have used for Sewage treatment

27 Solid Waste Solid waste disposed into general waste storage and there are three kind of waste segregation, such as: inorganic waste, organic waste, construction waste, and metal.

28 Water Usage The water take from ground water and distributed after collected into 5 water tank

Appendix A. Workers’ Accommodation


50

Table App.A-2: PT Koin

No. Item Description

1 Location 1.Located at Silangkitan PahaeJulu, North Tapanuli, North Sumatera, Indonesia

2.Located at Silangkitan Pahae Julu,North Tapanuli,North Sumatera,Indonesia

3.Located at Sarulla Pahae Julu,North Tapanuli,North Sumatera,Indonesia

2 Size 1.2 Floor 96 m2

2.2 Floor 100 m²

3.1 Floor 150 m²

3 Land Acquisition 1.Leased

2.Leased

3.Leased

4 Capacity 1.23 locals

2.30 locals

3.38 locals

5 Construction 1.The house was constructed by owner on 2015

2.The house was constructed by owner on 2015

3.The house was constructed by owner on 2016

6 Travelling to Work 1.The camp is only 10 minutes from worksite. Workers start to leave camp at 06.00 am and are transported to work by bus.

2. The camp is only 10 minutes from worksite. Workers start to leave camp at 06.00 am and are transported to work by bus.

3. The camp is only 15 minutes from worksite. Workers start to leave camp at 06.30 am and are transported to work by bus.

7 Facilities Management All The camp is managed by owner


All worker doesn’t need to pay for accommodation and facilities, such as: food, transport, and electricity..


No criteria to get accommodation. Provided to all staff

10 Code of Conduct Yes, there are rules installed in the camp and informed to the worker. This rule installed on the wall.


12 Grievances No, not yet

13 Minimum amount of space

1.5 Living space 4 x 5 rooms,to 5 person



14 Provision Standard provision to worker are bed, pillow, and locker

15 Sanitary 1.2 showers and 2 toilets

2.2 showers and 2 toilet

3.3 showers and 3 toilet

16 Laundry Not provided

17 Ventilation The main mode of ventilation is window

18 Food Yes, food was provided by company

19 Water Cooking using aqua gallon. Washing and showering using ground water

20 Leisure -

21 Security No Security

22 Gender Segregation All male

23 Emergency Response Plan List of emergency contact already informed in ID Card - yes evacuation routes installed on the wall

24 Fire Prevention & Fighting No fire extinguisher provided

25 Medical Using the nearest village clinic

26 Sewage using bio septic system


51

No. Item Description


28 Water Usage 1.The water take from ground water and distributed after collected into 1 water tank capacity 3.000 Liter

2. The water take from ground water and distributed after collected into 1 water tank capacity 3.000 Liter

3. The water take from ground water

Table App.A-3: Yeonhab

No. Item Response

1 Location a. Pangaloan (Pasaribu)

b. Pangaloan (Sianturi)

c. Pangaloan (Sibarani)

d. Silangkitang (Panggabean)

e. Silangkitang (Sitompul)

2 Size a. 8x25= 200 m2

b. 8x21 = 168 m2

c. 6x25 = 150 m2

d. 12x18 = 216 m2

e. 10x12 = 120 m2

3 Land Acquisition Rent house

4 Capacity 69 person, 60 for Indonesian person , and 9 for Korean person

5 Construction a. 2014

b. 2009

c. 2014

d. 2014

e. 2014

By owner

6 Travelling to Work Only less 10 minutes from worksite, workers start to leave camp at 06.30 and transported by minibus. There are 2 camps nearby worksite, the workers walking through to worksite about 5 minutes.

7 Facilities Management The camp managed by owner.


Charge to company, the worker doesn’t need to pay for accommodation and facilities, such as: food, transport, electricity, laundry.


Only non-local worker.

10 Code of Conduct The rule describe by owner related with local culture.


12 Grievances No

13 Minimum amount of space Living space allocated 2 workers into 3x4 rooms.

14 Provision Standard provision to worker is bed, pillow, blanket, and locker.

15 Sanitary 2 bathroom each mess. One bathroom for one Korean

16 Laundry Provided

17 Ventilation Window

18 Food Provided by company

19 Water Drinking water from aqua provider. Bath using natural resource.

20 Leisure Television

21 Security None

22 Gender Segregation Not applicable since no female on the camp

23 Emergency Response Plan No plan since rented local house

24 Fire Prevention & Fighting No


52

No. Item Response

25 Medical No, use public medical facility

26 Sewage Use usual septic tank

27 Solid Waste Manage by owner

28 Water Usage Natural resource

Table App.A-4: Hankook

No. Item Response

1 Location The workers’ camp is located in Silangkitang village, Pahae Jae, North Tapanuli, North Sumatera, Indonesia.

2 Size 120 m2


4 Capacity 22 person

5 Construction The camp was constructed in December 2014 by the local contractor.

6 Travelling to Work The camp only 5 minutes from site. Workers start to leave camp at 06.45 am and go to site.

7 Facilities Management The camp manager by owner.


All services provided by contractor.


Only for non-local workers

10 Code of Conduct No clear rules or guidelines are provided to the workers. Code of conduct is not displayed.

11 Personal Documents The worker s are allowed access to their travel/personal documents in all times

12 Grievances A grievance mechanism is on the place. No grievance reported so far.

13 Minimum amount of space Information about amount of living space is not available at the moment. However, storage space is included in the living space of the workers.

14 Provision The standard provision for each worker is 1 bedding, 1 pillow, , and 1 locker.

15 Sanitary Six toilet provided by owner of rent house.

16 Laundry provided and washing clothes by yourself

17 Ventilation Natural.

18 Food Provided by Hankook and supplied by local contractor.

19 Water Drinking and cooking using aqua. Washing, and showering using ground water.

20 Leisure Watching television

21 Security No security

22 Gender Segregation No segregation because no female on the camp.

23 Emergency Response Plan An Emergency Response Plan is available.

24 Fire Prevention & Fighting No fire prevention & fighting.

25 Medical Using the nearest village clinic.

26 Sewage Sewage using bio septic system.

27 Solid Waste Solid waste is disposed without segregation for recycling system.

28 Water Usage Water resource from ground water.

Table App.A-5: Karang Mas Unggul (KMU)

No. Item Response

1 Location The location workers camp in sarulla, pahae jae, tapanuli north

( Rented two house for rent )

2 Size House rent 1 : 105 m² , House rent 2 : 112 m²

3 Land Acquisition Land private property rights have a home.


53

No. Item Response

4 Capacity House rent 1 : 7 persons , House rent 2 : 9 persons

5 Construction The contruction houses was contructed by house onwer

6 Travelling to Work The house is located 20 km from SIL area project.

Workers escorted roundtrip by car,traveling a bout 15 minutes.

7 Facilities Management Facilitas Managemen by subcontractor


subcontractor only provide a place tiggal / lodging and to buy their own eating at the diner.


No criteria to get accommodation. Provided to all staff.

10 Code of Conduct No clear rules or guideline are provided to the workers. Code of Conduct is not displayed.

11 Personal Documents Every workers requested personal documents and collected in the company.

12 Grievances No, Not yet

13 Minimum amount of space Minimum amount of space 1 house 8 / 9 persons

14 Provision The standard provision for each worker is 1 bedding, 1 pillow

15 Sanitary 1 home there are 2 units shower and toilet

16 Laundry Wash your own clothes

17 Ventilation Natural

18 Food To eat, We buy their own food at diner.

19 Water Drinking and cooking uses water gallon, washing and showering uses ground water/ water PAM

20 Leisure No leisure/ recreation with co – workers went to the tourist attractions.

21 Security Responsible for security are those who have home rental.

22 Gender Segregation No segregation because no female on the camp.

23 Emergency Response Plan An Emergency Respons Plan is available andit has been provided to hyundai

24 Fire Prevention & Fighting Fire prevention & fighting using fire extinguisher

25 Medical Puskesmas sarulla, pahae jae.

26 Sewage Septic tank biotech for toilets, This system used microbes to control sewage.

27 Solid Waste Solid Waste stored in a safe place and do not disrupt the environmental pollution/ made septic tank.


Table App.A-6: Multi Adverindo NIL

No. Item Response

1 Location NIL 3

2 Size 1.500 m2



5 Construction The Camp was constructed in April 2014, by the contractor Local

6 Travelling to Work The Camp 300 m from NIL area/10 minutes

7 Facilities Management MA General Affair manages the camp and it is directly managed by contractor


Services are all provided by the contractor free of charge.


Worker is accommodated into the camp if his residence is outside of Pahae Julu or non-local

10 Code of Conduct No clear rules or guidelines are provided to the workers. Code of Conduct is not displayed

11 Personal Documents The workers are allowed access to their travel/personal documents at all times.


54

No. Item Response

12 Grievances A grievance mechanism is in place. No grievances reported so far

13 Minimum amount of space storage space is included in the living space of the workers

14 Provision The standard provision for each worker is 1 bedding and 1 pillow

15 Sanitary 4 units of showers/toilets are provided.

16 Laundry Yes

17 Ventilation Natural

18 Food Food provided by contractor with provisions due to religion.

Workers are not allowed to cook.

There are spaces designated specifically for cooking and eating

19 Water Drinking and cooking uses water gallon, washing, and showering uses ground water

20 Leisure No leisure/recreation facilities are available at the compound..

21 Security There are physical security features, eg fencing, gates, and lighting. There is six security staff.

22 Gender Segregation Females stay in their own rooms.

23 Emergency Response Plan An Emergency Response Plan is available and it has been provided to SOL

24 Fire Prevention & Fighting There are 6 fire extinguishers.


26 Sewage Septic tank biotech for toilets -

27 Solid Waste Solid waste is disposed without segregation for recycling system


Table App.A-7: ASIA BETON

No. Item Response

1 Location SIL-D

2 Size 8X10 m



5 Construction March 2014

6 Travelling to Work The camp only 5 minutes from site

7 Facilities Management The camp managed by contractor


The worker doesn’t need to pay for accommodation and facilities, such as: food, electricity, etc.


No criteria to get it

10 Code of Conduct There are rules install in the camp

11 Personal Documents Provided by company

12 Grievances Not yet

13 Minimum amount of space

Living space 3x2 m

14 Provision Provision to worker, including bed, pillow, and locker.

15 Sanitary 6 shower and 6 toilets

16 Laundry No provided

17 Ventilation The main mode of ventilation only window without fan or air conditioning

18 Food Food comes from catering

19 Water Drinking using aqua. Washing and showering using natural resource

20 Leisure Television only for temporary


55

No. Item Response


22 Gender Segregation No segregation because no female on the camp

23 Emergency Response Plan There are two fire extinguisher in the base camp

24 Fire Prevention & Fighting Only provided fire extinguisher

25 Medical Using the nearest village clinic..

26 Sewage Sewage using bio septic system

27 Solid Waste Throw into the trash


Table App.A-8: DAEAH

No. Item Response

1 Location a. Pardamean

b. Sarulla

2 Size a. 600 m2

b. 600 m2


4 Capacity a. 4 Korean and 1 local

b. 12 local

5 Construction a. The camp constructed in November 2015

b. The camp constructed in September 2015

6 Travelling to Work a. The camp located 1 km from NIL area and 15 km from SIL

b. The camp only taken 20 minutes from site. The workers started to leave camp at 06.00 am and transported by bus

7 Facilities Management Managed by contractor


Services are all provided by the contractor free of charge


Only for non-local worker

10 Code of Conduct No clear rules or guidelines are provided to the workers. Code of conduct is not displayed.

11 Personal Documents The worker allowed access their travel/personal document at all times.

12 Grievances A grievance mechanism is in a place. No grievance reported so far.

13 Minimum amount of space Information about the amount of living space is not available at the moment. However, storage space is included in the living space of the workers.

14 Provision Standard provision to worker, including bed, pillow, and locker

15 Sanitary 2 shower for men and 2 toilets for men

16 Laundry Not provided for local, only for Korean

17 Ventilation Only window for local, and AC for Korean

18 Food Food provided by contractor with provisions due to religion

19 Water Drinking water and cooking using aqua. Washing and showering using ground water but minimal available

20 Leisure Television only for temporary

21 Security No


23 Emergency Response Plan List of emergency contract already informed in ID Card

24 Fire Prevention & Fighting No fire prevention


26 Sewage Septic tank biotech for toilets. This system uses microbes to control sewage


56

No. Item Response

26 Solid Waste Solid waste is disposed without segregation or recycling system

27 Water Usage The water taken from ground water and distributed after collected into the tank.

Table App.A-9: CHANGWOON

No. Item Response

1 Location a. Pangaloan (Sitompul)

b. Pangaloan (Tobing)

c. Pangaloan (Gultom)

d. Sarulla (Tobing)

e. Tarutung (Hutabarat)

2 Size a. 8x10 m

b. 8x10 m

c. 8x15 m

d. 6x10 (2H) = 120

e. 6x10 (2H) = 120


4 Capacity 40 locals and 3 Koreans

5 Construction a. 2014

b. 2016

c. 2014

d. 2015

e. 2014

6 Travelling to Work Only lee 10 minutes from worksite, worker, start to leave camp at 06.30 and transported by minibus. There are 2 camps nearby worksite, the workers walking through to worksite about 5 minutes.

7 Facilities Management The camp managed by owner


Charged to company. The worker doesn’t need to pay for accommodation and facilities, such as: food, transport, electricity, and laundry.


Only for non-local worker

10 Code of Conduct The rule describe by owner related to local culture.


12 Grievances A grievance mechanism is in a place. No grievance reported so far.

13 Minimum amount of space Living space allocated for 2 workers into 3x4 rooms.

14 Provision Standard provision to worker, including bed, pillow, and locker

15 Sanitary 2 bath room each mess, 1 for Korean, and another room provided for local workers.

16 Laundry Provided for local, and Korean

17 Ventilation Only window

18 Food Food provided by company

19 Water Drinking water and cooking using aqua. Washing and showering using natural resources.


21 Security No





26 Sewage Using traditional septic tank

26 Solid Waste Managed by owner

27 Water Usage Using the natural resources


57

Table App.A-10: POWERTECH

No. Item Response

1 Location Located at Sarulla

2 Size 12.400 m2


4 Capacity 12 non-local

5 Construction July 2012

6 Travelling to Work The camp only 35 minutes from work site

7 Facilities Management No facilities


The works does need to pay for accommodation


Provided for all worker

10 Code of Conduct Nothing


12 Grievances No. Not Yet.

13 Minimum amount of space Living space allocated 3 worker to 3x4 rooms

14 Provision Standard provision.

15 Sanitary 2 shower & toilet

16 Laundry Not provided


18 Food Yes, provided by company

19 Water Cooking using aqua gallon, washing & showering


21 Security No





26 Sewage Using traditional septic tank


27 Water Usage Using ground water

Table App.A-11: MULTIADVERINDO SIL

No. Item Response

1 Location Pangaloan,Pahae Jae/Mess Hijau Pakpahan

2 Size 3 rooms x 4 person/1 room 25 person



5 Construction By owner

6 Travelling to Work By bus around 15 minutes to site

7 Facilities Management Pillow, bed, etc


No pay


58

No. Item Response


Authorized person only

10 Code of Conduct -

11 Personal Documents Handled by person

12 Grievances Not yet

13 Minimum amount of space Around 80 cm

14 Provision Standard provision.

15 Sanitary 1 toilet

16 Laundry Provided by company


18 Food Yes, provided by company

19 Water Cooking using aqua gallon, washing & showering



22 Gender Segregation No segregation, no female in the camp




26 Sewage Using traditional septicy tank

26 Solid Waste Solid waste is disposed without segregation or recycling system

27 Water Usage Using ground water

Table App.A-12: HAL Camps

No. Item Response

1 Location There are 2 basecamps operated until now, at NIL-3 and at SIL-D.

2 Size Not provided

3 Land Acquisition Those basecamps are within SOL's area.

4 Capacity Each camp's capacity is about 150 people.

5 Construction NIL-3 - September 2015 began to be occupied.

SIL-D - November 2015 began to be occupied.

6 Travelling to Work NL-3 - 45 minutes to work site by bus and light vehicle crew change.

SIL-D - 10 minutes to work site by light vehicle crew change.

7 Facilities Management NIL-3 is managed by a third party named PT. Prospero Prima

SIL-D - is managed by a third party named Adinda Intra Sarana (AIS)


Both camps are free of charge.


Basecamps are basically for Halliburton's subcontractors, no particular criteria to occupy the accommodation.

10 Code of Conduct No code of conduct displayed during the site visit.

11 Personal Documents The workers are allowed access to their documents at all time.

12 Grievances There are worker grievances mechanisms in place, but none reported yet.

12 Minimum amount of space Each camp consists of 20 ft and 40 ft caravans.

13 Provision Bedding, pillow, mini shelf/cupboard. VIP room equipped with Television cable

14 Sanitary In average, 1 toilet for 4 to 8 persons.

15 Laundry Laundry service is provided.

16 Ventilation Air conditioning.


59

No. Item Response

17 Food Food is provided for workers. Due to religion, the food provider only cooks what Muslims can eat.

18 Water For domestic uses water is provided by 3rd party, for cooking uses refilled water and for drinking uses bottled water.

19 Leisure There is recreation hall for each camp. At SIL-D there is table tennis

20 Security Security fencing and gate are available at each camp.

NIL-3 - 3 security personnel for each shift (day and night).

SIL-D - 2 security personnel for each shift (day and night).

21 Gender Segregation Separate room for men and women.

22 Emergency Response Plan NIL-3 - there are emergency contact list and clear indication of mustering point also display of evacuation routes.

SIL-D - no emergency contact displayed, but clear indication of mustering point also display of evacuation routes are available

23 Fire Prevention & Fighting Each aisle is equipped with a fire extinguisher.

24 Medical NIL-3 -, SOS stands by at site.

SIL-D - Not yet available.

25 Sewage NIL-3 - septic tank is utilised for sewage, Dinas Kebersihan will take out the sludge regularly.

SIL-D- there are 2 septic tanks. It is planned to cooperate with Dinas Kebersihan to take out the sludge.

26 Solid Waste Solid waste is transported by licenced 3rd party.

27 Water Usage See item number 18.

60


Appendix B. Implemented IPP related activities that provide infrastructural, agricultural, educational and health benefits to local communities.

61


62


63


64


65



66

Appendix C. Potential Non-compliances and Recommended Actions


67

Table App.D-L-10: Potential Non-compliances and action item

Description of potential non-compliance Effect Responsibility Action Item

Occupational Health, Safety and Security

• Unsafe working at height

• Unsafe confined space practices

• Unsafe hot work practices

• Unsafe operation of mobile plant

• Lack of safety barriers

• Uncontrolled trip, slip and fall hazards

• Workers not wearing PPE

• Lack of spill response equipment

• Lack of site access control

Lack of operation control of safety was demonstrated.

• High probability of accident

• Labor and community safety

SOL and HDEC • Establishment of detailed, agreed environmental, safety and social KPIs guidelines for the Hyundai Construction Manager which must be specific, measurable achievable, relevant and time-based.

• Conduct OHS audit by third party

• Establish Corrective Action Plan based on OHS audit result

Environmental

• Damaged farmlands below NIL Power Plant

• Damaged farmlands at SIL Area

• Siltation of Siaccimun river

• Wastewater at Sibao-bao river

• Decreasing volume and pressure of water supply in Sigurung-gurung village

• Erosion and heavy water flow during rainy season

• Flooding of silt and sand

• Limited access to farmland

• Decreasing quality of river water

• Decreasing volume of river water

SOL and HDEC • Prepare remediation plan (including the technical solution) and implement it as soon as possible

Labor and working conditions Labor Laws

• Subcontractors are not registering their workers with the village authorities.

• Workers’ accommodations appear to be not complying with EHS standards.

• Workers do not have contracts.

• Disparity in terms of benefits provided to workers.

• Workers have not received evidence that insurance contributions deducted have actually been deposited.

• Unskilled workers may not be paid the minimum wage.

• Community unrest

• Workplace grievance

• Potential regulatory non-compliance

SOL, HDEC, HAL • Conduct labor and working conditions audit by third party

Safeguards and Social Monitoring Report 3rd Reporting (Monitoring period: January-June, 2015)


68

Appendix D. Land Acquisition – SIL-1 – SIL-2 Brine Injection and Siaccimun River (NIL Area)

Land Acquisition

SIL-1 – SIL-2 Brine Injection and Siaccimun River (NIL Area)

1. Background

In second semester of 2015, there were 2 land acquisition activities conducted by SOL team (1 in SIL

area and 1 in NIL area). The background of each land acquisition is as follows:

a. SIL Area (SIL-1 – SIL-2 brine injection)

The existing pipe corridor from SIL-1 to SIL-2 was acquired in 2012 intended for 8” reinjection pipeline

of SIL-1 well testing. Upon the EPC commencement in 2014, the additional lands were required for

loop area of the 24” reinjection pipeline. The additional lands were acquired in 2016 by widening of

the loop spot at existing owned land.

b. NIL Area (Siaccimun river)

Erosion that occured in March 2015 affected community in Simataniari village as paddy fields were

covered by sand. The main cause of the incident was identified as the insufficient drainage capacity

from Siaccimun river which caused silty runoff to flow into the paddy fields.

Technical solution determined to prevent recurrence of the incident for these grievances is widening

the existing drainage by the impacted paddy field which was partly natural and partly concrete.

Widening of the drainage required additional lands located along the drainage. Size of the land to be

acquired was approximately 3,307 m2.

2. Number of Land Owners and Detail of Land

Table below shows the detail of land owners, land size, crops inventory and payment date of each

land acquisition.

a) SIL1 – SIL 2 brine injection

No Name Village Land

Acquired (m2)

Crops Payment Date

Type Total

1 Paima Sibarani Silangkitang 216

Rubber - A 50

23 Feb 2016

Rubber - B 14

Rubber - C 19

Wood - B 16

Dog Fruit - B 6

Durian - B 1

2


Acquired (m2)

Crops Payment Date

Type Total

Durian - C 1

Chocolate - C 6

2 Rimhot Sitompul Silangkitang 205

Rubber - A 30

23 Feb 2016

Rubber - B 72

Rubber - C 30

Wood - B 5

Stink Bean - B 2

Stink Bean - C 3

Rambutan - A 2

Mango - B 2

Areca Nut - A 130

Durian - B 2

Durian - C 4

Chocolate - B 13

Chocolate - C 22

Langsat - B 10

Langsat - C 2

Sugar Palm - A 17

Sugar Palm - B 4

Sugar Palm - C 1

Banana - C 2

3 Sabar Simorangkir Silangkitang 126

Rubber - A 20

23 Feb 2016

Rubber - B 11

Rubber - C 50

Mango - B 2

Mango - C 1

Durian - B 2

Durian - C 1

Chocolate - C 5

4 Januara Sitompul Sigurung gurung

87 Chocolate - C 23

23 Feb 2016 Rambutan - C 1

5 Dahlan Sihombing Sigurung gurung

211

Wood - A 27

23 Feb 2016

Wood - B 39

Wood - C 33

Stink Bean - C 1

Durian - B 3

Durian - C 3

Chocolate - B 10

Chocolate - C 22

6 Anggiat Panjaitan Sigurung gurung

100

Rubber - B 5

23 Feb 2016 Rubber - C 6

Wood - B 3

Incense - C 1

3


Acquired (m2)

Crops Payment Date

Type Total

Dog Fruit - C 1

7 Alden Sitompul Sigurung gurung

248 Rice - B 9,920

23 Feb 2016 Rubber - C 15

8 Samalia Panjaitan Sigurung gurung

1,540

Rubber - A 150

23 Feb 2016

Rubber - B 31

Rubber - C 134

Wood - B 35

Wood - C 5

Incense - A 70

Incense - B 19

Incense - C 5

Stink Bean - C 1

Dog Fruit - C 4

Durian - C 1

Total land acquired 2,733

Other than Rimhot Sitompul and Samalia Panjaitan, every land owner had sold their land to the

project. There are no vulnerable land owners.

b) Siaccimun river


Acquired (m2)

Crops Payment Date

Type Total

1 Marlin Sitompul Simataniari 152 Rice – B 6,080 29 Dec 2015

333 Rice – B 13,320 29 Dec 2015

2 Elman Simatupang Simataniari 145 Rice – B 5,800 29 Dec 2015

3 Rodiman Simatupang Simataniari

104 Rice – B 4,160 29 Dec 2015

87 Rice – B 3,480 29 Dec 2015

30 Rice – B 1,200 29 Dec 2015

4 Sumantoro Sinaga Simataniari 64 Rice – B 2,560 11 Feb 2016

5 Janton Simatupang Simataniari 250 Rice – B 10,000 29 Dec 2015

6 Sutan Sitompul Simataniari 190 Rice – B 7,600 29 Dec 2015

7 Binsar Sitompul Simataniari 46 Rice – B 1,840 29 Dec 2015

8 Sudianto Simatupang Simataniari 56 Rice – B 2,240 29 Dec 2015

9 Timeria Tampubolon Simataniari 40 Rice – B 1,600 29 Dec 2015

10 Marolop Sitompul Simataniari 328 Rice – B 13,120 29 Dec 2015

11 Gomgom Sitompul Simataniari 92 Rice – B 5,980 29 Dec 2015

12 Hulman Sitompul Simataniari 1,390 Rice – B 55,600

11 Feb 2016 Wood – B 4

Total land acquired 3,307

There are no vulnerable land owners.

4

3. Eligibility and Entitlement

Land owners are impacted on permanently or temporarily, fully or partially by the loss of:

- Land (commercial use)

- Crops or trees (as land owner)

For which appropriate compensation has been paid.

Eligible land owners are provided with the following:

- Compensation to land owners who have lost plants and harvest failure

- Compensation to land owners caused by the delay of technical solution implementation

- Compensation to land owners for the land acquired by SOL

The cut off date of the land acquisitions are as follows:

- SIL-1 – SIL-2 brine injection is on 23rd February 2016

- Siaccimun river is on 29th December 2015 (for 10 land owners) and 11th February 2016 (for the

other two land owners)

Those date was announced to the local communities during the socialization of the land and crop

compensation process.

4. Price Assesment

The land compensation rate for SIL-1 – SIL-2 Bine Injection is IDR 70,000/m2 and IDR 65,000/m2 for

Siaccimun river. It was a result of negotiated settlement with the affected land owners. The land price

is higher than Tax Object Sales Value (NJOP) rate and excluding crops compensation.

The crops compensation price referred to crop prices issued by the Agriculture Agency which was

applied to our previous land acquisitions in order to avoid social tensions between the land owners

who received compensation previously and those only recently affected by land acquisition.

5. ISP

The land owners affected by this land acquisitions are located in the villages that have been

beneficiaris of the ISP activities since 2015.

Key livelihood programs for the land owners are:

- Prioritization for employment based on their skill and capability

- Agricultural training

- Skills training

5

6. Consultation

The affected land owners was visited several times by SOL and HDEC to identify source of the impact,

impact scale, losses suffered by the land owners, land size, crop inventory, compensation negotiation

and technical solution socialization.

Following is the socialization of land acquisition conducted by SOL:

- SIL-1 – SIL-2 brine injection: 9 February 2016 at SOL office with total number of attendees were

14 people.

- Siaccimun river: 15 June 2015 at SOL office with total number of attendees were 15 people (this

socialization was including technical solution negotiation)

7. Land Acquisition and Displacement Schedule

Land acquisitions detail schedule and compensation amount are as follow:

1. SIL-1 – SIL-2 brine injection

Schedule

Action Responsibility Schedule

Land survey ER/Surveyor 1st December 2015

Socialization & negotiation ER 9th February 2016

Payment ER/Finance 23rd February 2016

Land acquisition and crop compensation amount

Item Cost (IDR) Cost (USD)

Land 191,310,000 14,171

Crops 219,373,400 16,250

Livelihood restoration Include in ISP budget Include in ISP budget

Total 410,683,400 30,421

2. Siaccimun river

Schedule

Action Responsibility Schedule

Socialization & negotiation ER 15th June 2015

Land survey ER/Surveyor 17th June 2015

Payment ER/Finance 29th December 2015 and 11th

February 2016

6

Land acquisition and crop compensation amount

Item Cost (IDR) Cost (USD)

Land 198,705,000 14,719

Crops 183,620,000 13,601

Livelihood restoration Include in ISP budget Include in ISP budget

Total 382,325,000 28,320

Safeguards and Social Monitoring Report 3rd Reporting (Monitoring period: January-June, 2015)


69

ADB Asian Development Bank

AMDAL (Indonesia's) Environmental Impact Assessment Report

ANDAL (Indonesia's) Environmental Impact Analysis Report

BAP Biodiversity Action Plan

CSR Corporate Social Responsibility

EBTKE (Indonesia's) Renewable Energy and Energy Conservation (directorate under Energy and Mineral Resource Ministry Republic of Indonesia)

ER External Relations

ERP Emergency Response Plan

ESAP Environmental and Social Action Plan

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

ESMS Environmental and Social Management System

H&S Health and Safety

H2S Hydrogen Sulfide

HAL Halliburton

HDEC Hyundai Engineering and Construction

HSE Health, Safety and Environment

IFC International Finance Corporation

IP Indigenous People

IPP Indigenous Peoples Plan

ISP Integrated Social Program

JBIC Japan Bank for International Cooperation

LECM Low Emission Compact Muffler

LTI Lost Time Injury

NIL Namora I Langit (northern portion of the Project area)

PAH Project Affected Households

PLN Perusahaan Listrik Negara

PT PP Main local sub-contractor under HDEC

RKL-RPL (Indonesia's) Environmental Management and Monitoring Plan

SCBA Self-Contained Breathing Apparatus

SIL Silangkitang (southern portion of the Project area)

SLIP Supplementary Lenders Information Package

SOL Sarulla Operations Limited

UNSG Unocal North Sumatera Geothermal

Glossary

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Documents

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