SEA for Indonesian Master Plan for Accelerated Economic ...
Transcript of SEA for Indonesian Master Plan for Accelerated Economic ...
Ministry Of Foreign Affairs Of Denmark
Report
November 2013
SEA for Indonesian Master Plan for
Accelerated Economic Development
(MP3EI)
Pre-Scoping Report
Sulawesi EC
Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
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SEA for Indonesian Master Plan for
Accelerated Economic Development
(MP3EI)
Pre-scoping Report
EC Sulawesi
Prepared for Ministry Of Foreign Affairs Of Denmark
Represented by Mr Peter Oksen
Project manager Joshua Jon van Berkel
Project number 61800814
Prepared by Michal Musil, Yesaya Hardyanto
Final Draft submitted 21/11/2013
Approval date
Revision
Classification Open/Restricted/Confidential
Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
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CONTENTS
Introduction ................................................................................................................. 1 11.1 Background on SEA MP3EI Project .............................................................................................. 1 1.2 SEA Process and where the current Pre Scoping Phase Fits Within This Including
Purpose and Expected Outputs from Pre-Scoping. ....................................................................... 1 1.3 Pre-Scoping Activities .................................................................................................................... 2
Early Stakeholder Discussions ...................................................................................................... 2 1.3.1
Review the MP3EI Planning for the Kalimantan EC, Provincial Spatial Plans Development 1.3.2
Plans .............................................................................................................................................. 3 Developing Preliminary List of Key Potential Issues in Sulawesi EC ............................................ 3 1.3.3
Stakeholder Mapping ..................................................................................................................... 3 1.3.4
Organizing Pre-Scoping and Data Collection Workshop ............................................................... 3 1.3.5
Finalizing and Disseminating Pre-Scoping Report ........................................................................ 3 1.3.6
1.4 Further Steps ................................................................................................................................. 4
Overview of MP3EI Planning in the Economic Corridor ........................................... 5 22.1 Delineation of Economic Corridor .................................................................................................. 5 2.2 MP3EI Planning for EC .................................................................................................................. 7
Main Planned Economic Activities ................................................................................................. 7 2.2.1
Main Policies and Regulations ....................................................................................................... 8 2.2.2
Main Planned Infrastructure ........................................................................................................... 9 2.2.3
2.3 Overview of Autonomous Provincial Planning ............................................................................. 10 2.4 Overview of major ongoing/to-be-implemented projects ............................................................. 11
Summary of Relevant Baseline Features................................................................. 14 33.1 Environmental Quality .................................................................................................................. 14
Water ............................................................................................................................................ 14 3.1.1
Air and Climate............................................................................................................................. 14 3.1.2
Land and Soil ............................................................................................................................... 15 3.1.3
3.2 Ecosystems .................................................................................................................................. 17 Biodiversity ................................................................................................................................... 17 3.2.1
Forests ......................................................................................................................................... 19 3.2.2
Coastal Degradation .................................................................................................................... 20 3.2.3
3.3 Socio and Economic Aspects ...................................................................................................... 21 Human Health .............................................................................................................................. 21 3.3.1
Livelihood ..................................................................................................................................... 22 3.3.2
Industry and Mining ...................................................................................................................... 23 3.3.3
Energy and Waste ....................................................................................................................... 24 3.3.4
3.4 Environmental Management ........................................................................................................ 26 Protected Areas ........................................................................................................................... 26 3.4.1
Environmental Conflicts ............................................................................................................... 27 3.4.2
Preliminary Overview of the Potential Issues for EC .............................................. 29 4 Deforestation / Degradation of Forests Functions ....................................................................... 29 4.1.1
Air and Water Pollution ................................................................................................................ 29 4.1.2
Land and Soil Degradation .......................................................................................................... 30 4.1.3
Coastal Degradation .................................................................................................................... 30 4.1.4
Loss of Biodiversity ...................................................................................................................... 31 4.1.5
Disaster Risk Management .......................................................................................................... 31 4.1.6
Human Health Risks .................................................................................................................... 32 4.1.7
Livelihood Opportunities .............................................................................................................. 32 4.1.8
Environmental Management ........................................................................................................ 33 4.1.9
Other Specific Issues ................................................................................................................... 33 4.1.10
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Main Conclusions and Preliminary Recommendations Resulting from the 5
Pre-Scoping .............................................................................................................. 34 5.1 Identified Risks and Opportunities ............................................................................................... 34 5.2 Initial Policy Recommendations ................................................................................................... 35
References ................................................................................................................ 36 6
FIGURES
Figure 2.1 Delineation map of Sulawesi Economic Corridor .......................................................................... 6 Figure 2.2 Location of KPIs and indication of assigned financial allocations ................................................. 7 Figure 2.3 Main planned Infrastructure in Kalimantan EC .............................................................................. 9 Figure 3.1 Coral reefs, Seagrass and Mangrove distribution in Sulawesi EC (BIG, 2013; Ministry of
Marine Affairs and Fisheries, 2013 and Ministry of Forestry, 2013) ........................................... 21 Figure 3.2 Map of Conservation Areas in Sulawesi ...................................................................................... 27
TABLES
Table 3.1 Average pollutant concentration during the periods of 2001-2010 .............................................. 15 Table 3.2 Extent of plantation Land in Sulawesi (2006) .............................................................................. 16 Table 3.3 Freshwater endangered species in Sulawesi .............................................................................. 18 Table 3.4 Territory of Forests Areas (in thousands Ha) in Sulawesi up to 2006 ......................................... 19 Table 3.5 Deforestation in Sulawesi provinces (hectares) .......................................................................... 19 Table 3.6 Main employment characteristics in Sulawesi provinces ............................................................ 23
APPENDICES
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MP3EI Planning Information in Sulawesi EC A
A.1 Planned Policy/Regulations and Infrastructure Developments in Sulawesi
EC
A.2 List of KPIs and Their Designation for Specific Types of Economic
Development
A.3 List of Main Planned Infrastructure Projects
A.4 List of Main Planned Economic Development Projects
Supporting Information B
B.1 Preliminary List of Relevant Stakeholders for Sulawesi EC
B.2 Minutes from Pre-Scoping Workshop
B.3 List of Participants of Pre-Scoping Workshop
B.4 Invitation and Agenda
Introduction
1
Introduction 1
1.1 Background on SEA MP3EI Project
In 2011, the Government of Indonesia introduced the first version of the Master Plan for
Acceleration and Expansion of Indonesia Economic Development 2011-2025 (MP3EI). The
MP3EI represents the main Indonesian a core of Indonesia’s long-term development documents
strategy with its prime objective “to realize the Indonesia 2025 vision to create a self-sufficient,
advanced, just, and prosperous Indonesia and to transform Indonesia into a developed country
by 2025”. The MP3EI includes a strategic focus on 22 economic activities (i.e. the Policy) and
the implementation of these activities in the defined Economic Corridors (ECs).
While executing the recently released updated version of the MP3EI, however, it was realised
that the MP3EI and associated National Medium Term Development Plan (RPJMN) needed to
deepen their consideration of social and environmental factors to assure the overall vision of
sustainability in Indonesia. Thus, along with several other initiatives, the Strategic Environmental
Assessment (SEA) was chosen as a method for realizing the required level of integrated policy
and planning development. The SEA is required by Indonesian legislation for policy, planning
and program development.
To accomplish the required SEA Greening, Bappenas, together with the Ministry of Economic
Coordination a key MP3EI coordinating body of the Government of Indonesia (KP3EI), was
charged with developing an appropriate SEA approach. This approach entails the execution of
one MP3EI ‘Policy’ SEA and six Economic Corridor (EC) SEAs. Further, Bappenas approached
the Royal Danish Embassy and DANIDA for assistance via the third instalment of the
Environmental Support Program (ESP3).
The project MP3EI SEA was launched in June 2013 and shall last until July 2014. This
document consists of the pre-scoping reporting of one of the six EC SEAs
1.2 SEA Process and where the current Pre Scoping Phase Fits Within This Including Purpose and Expected Outputs from Pre-Scoping.
In accordance with general objectives of SEA i.e. addressing the strategic levels of decision-
making to effectively minimise risks to environmental resources and human health likely
resulting from policy, plan or program implementation, whilst providing opportunities for growth
and sustainable development options, the MP3EI SEA intends to provide creditable strategic
environmental analyses of the MP3EI Policy and Economic Corridor Planning and, where
necessary, recommendations on how to minimize or avoid associated negative effects and the
means to strengthen positive effects. Optimally, the SEAs shall foster the integrated evolution of
a truly sustainable MP3EI, along with the associated planning procedures (e.g. RPJMN and
provincial planning) as well as – to the extent possible – individual projects.
The SEA process for the Economic Corridor includes following analytical steps:
Pre-scoping involves the initial analysis of the Economic Corridor (EC) Plans and related
baseline features to focus the SEAs and provides likely feedback on the key issues – this
step includes also first consultations with the relevant stakeholders through workshops in
each EC.
Scoping Analysis involves comprehensive identification of the key strategic issues via
structured expert analyses and stakeholders´ consultations for each EC.
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Analysis of likely effects of proposed activities in ECs involves the verification if an identified
issue is strategic through appropriately developed qualitative and (semi) quantitative
analysis techniques.
Formulation of Mitigation Measures is based on the characterisation of the strategic issues
and likely impacts identified from the previous stage. This will allow for experts to, as far as
possible, pinpoint feasible and implementable measures to avoid or mitigate likely adverse
impacts as well as to enhance potential positive ones.
Compilation of the SEA Report to summarize all findings including conclusions from
consultations with relevant stakeholders and formulate final set of the recommendations.
This document, as indicated above, presents the initial pre-scoping EC feedback,and represents
the currentstage of the SEA EC process. It has been compiled during September – October
2013 with focus on initial preliminary analysis of the likely strategic issues for the Sulawesi EC.
The pre-scoping has been carried out by the MP3EI SEA Team experts, with support obtained
through consultations with the central authorities and national NGOs; as well as from the
participants of the Pre-scoping & Baseline Workshop MP3EI SEA for Sulawesi EC (Makassar,
October 8th, 2013 – see Appendix B.2 for detailed information). In addition to analytical work
and consultations, the data collection – especially provincial Spatial and Development Plans –
has also been undertaken as part of pre-scoping activities.This report summarizes findings from
the pre-scoping analyses and consultations i.e. provides an overview of the preliminary scope of
assessment, baseline data and relevant plans´ review. Findings from pre-scoping will provide a
basis for further and detailed analysis of the key strategic issues in the scoping phase.
1.3 Pre-Scoping Activities
The pre-scoping activities of Sulawesi EC are intended to assist defining the scope of the
assessment, ensuring relevant to the Sulawesi EC (i.e. the list of the key strategic issues) and to
facilitate stakeholder consultation process in order to underpin further analytical work.
To carry out the task, several activities have been and will be undertaken as follows:
Early Stakeholder Discussions 1.3.1
A variety of pre-scoping issues were discussed with the KP3EI, Bappenas and particularly the
leading ministry of Sulawesi (Ministry of Marine and Fisheries) as well as other stakeholders
related to Sulawesi EC. The focus of these discussions was:
Obtaining a list of projects initiated or soon to be initiated, stages of completion for
implemented projects; selection criteria for projects (if applied) in Sulawesi
Determing linkages between MP3EI EC and other plans at the national and provincial levels
Uncovering opportunities for SEA input at the EC level (e.g. room for input or modification;
integration of environmental criteria)
Identifying what KP3EI/Bappenas/KLH consider key environmental and social concerns and
problems related to the implementation of the MP3EI within Sulawesi EC.
Discover the accessibility of provincial level data and information (both from the GOI and
other stakeholders)
Introduction
3
An additional consultative meeting was held with the Ministry of Marine and Fisheries as the
lead Ministry for MP3EI in Sulawesi EC. Following issues were discussed:
The acessibility of the baseline data rergading the coastal ecosystems in Indonesia
updates on EC projects status
the Ministry´s concerns related to the possible environemntal impacts (especially of planned
mining projects) towards marine and fisheries sector in Sulawesi.
Review the MP3EI Planning for the Kalimantan EC, Provincial Spatial Plans 1.3.2Development Plans
A review of the MP3EI Economic Activities proposed for Sulaweesi EC and the provincial plans
within the EC has also been undertaken during the pre-scoping phase. This was to provide the
scoping process with a full understanding of the objectives of the relevant plans, proposed
developments and constraints for each area. However, since most of the planning documents
are available on the provincial level, only the information regarding the status of the plans are
presented at this stage (see section 2.3) The baseline mission to the corridor is expected to
update the information regarding the provincial planning.
Developing Preliminary List of Key Potential Issues in Sulawesi EC 1.3.3
Using the master list of key strategic issues identified for the MP3EI Policy SEA, a more specific
overview has been developed for Sulawesi EC using secondary literature (e.g. Environmental
Yearbook). The information has been briefly summarised in line with the the following
principles:
Highlighting existing environmental and social issues of importance in Sulawesi EC
Specifying detailed problems and concerns for each issue within Sulawesi
Identifying needs for further data/information
Identifying of key stakeholders relevant to specific issues in Sulawesi
Stakeholder Mapping 1.3.4
With assistance from the project stakeholders, the SEA Team have prepared an initial list of
relevant stakeholders for Sulawesi EC during the pre-scoping phase. The initial list of relevant
stakeholders in Sulawesi can be viewed in detail in Appendix B
Organizing Pre-Scoping and Data Collection Workshop 1.3.5
A workshop was organized in Makassar on October 8th, 2013, in order to:
Gather feedback on proposed issues, concerns and problems relevant to a given EC
Gather information on ongoing and planned development
Obtain baseline data from provincial agencies
Conclusions from the discussions and main comments received are summarized in Appendix
B.2 of this Report.
Finalizing and Disseminating Pre-Scoping Report 1.3.6
Considering findings from the activities above, the Pre-Scoping Report has been drafted and
opened for additional comments through the MP3EI SEA Project website
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1.4 Further Steps
The next immediate step after pre-scoping is to undertake scoping activities. This will include a
number of activities, such as:
a. Collection of additional data and information needed as identified in the Pre-Scoping phase
b. Literature review of data and information collected for supporting the list of potential key
issues in the Economic Corridor
c. Undertaking internal scoping among the SEA experts
d. Undertaking SEA Scoping Workshop with stakeholders
e. Completing and submitting final Scoping Report
Overview of MP3EI Planning in the Economic Corridor
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Overview of MP3EI Planning in the Economic Corridor 2
This section outlines the most environment-relevant aspects of the overall MP3EI planning in the
Sulawesi Economic Corridor. It is acknowledged that the presented information is based on the
current content of the MP3EI document, which is however still under development, and thus
might be a subject of change.
2.1 Delineation of Economic Corridor
Sulawesi Economic Corridor (EC) anticipates implementation of activities in the provinces of
South Sulawesi, Central Sulawesi, North Sulawesi, West Sulawesi, Southeast Sulawesi &
Gorontalo, where Zones for Investment Focus (Kawasan Perhatian Investasi - KPI) and major
projects are planned. The EC includes 12 national strategic areas (KSN), located within the
corridor. The territorial distribution of the EC Sulawesi main types of economic activities is
indicated in following figure. Agricultural activities in light blue node, Cocoa with yellow node,
Fisheries turquoise node, Nickel mining purple node, and Oil and (natural) gas being indicated
with orange node.
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Figure 2.1 Delineation map of Sulawesi Economic Corridor
The Sulawesi EC comprises of 6 main economic centers: Makassar, Kendari, Mamuju, Palu,
Gorontalo and Manado. The MP3EI related interventions are envisaged to take place within 28
Zones of Investment Focus (KPI) within the economic corridor.
The KPIs represent the main economic zones in each EC that consist of production
centres/investment activities concentrated in specified geographical locations. The selection
criteria for a location to become a KPI, include total investment value (the most significant),
Government and local government support towards the local production centres, suitability to
broader strategic interests (social, economy and political impact), and directives from the
Government. Most KPIs are designated within the area of Central Sulawesi province (10 KPIs)
with major economic activities in fisheries and nickel, followed by South Sulawesi (7 KPIs) with
major activities in food agriculture and fisheries. The list of KPIs with the proposed designations
Overview of MP3EI Planning in the Economic Corridor
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for specific main economic activities within the economic corridor can be viewed in detail in
Appendix A.
Figure 2.2 Location of KPIs and indication of assigned financial allocations
2.2 MP3EI Planning for EC
Main Planned Economic Activities 2.2.1
The economic development in Sulawesi EC are dominated by main economic activities:
Agriculture (evenly distributed throughout the region),
Cocoa (with largest land area of cocoa production located in South Sulawesi and Central
Sulawesi),
Fishery (with fishing activities taking place namely in Makassar Strait, Tolo Bay, Tomini Bay,
Maluku Sea and Halmahera Sea)
Nickel mining, with four important locations with abundant reserves of nickel:
- Sorowako, East-Luwu Regency, South Sulawesi
- Morowali Regency, Central Sulawesi
- Pomalaa, Kolaka Regency, Southeast Sulawesi
- Konawe Regency, Southeast Sulawesi
In addition, specific consideration is given to the Oil & gas sector for strategic reasons, in spite
of the fact that the sector is not a major contributor to the overall economic output of the region
and the oil and gas reserves of Sulawesi are comparatively small.
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The objectives relevant for designated main Sulawesi EC economic activities (to be developed
within the KPIs) are as follows:
1. Agriculture (Rice, Corn, Soybean and Cassava)
- Increase the food agriculture through food intensification
2. Cocoa
- Improve yield of cocoa upstream value chain through increasing production (cocoa
beans and processed products), sustainable productivity and improving quality of
cocoa through fermentation and certification;
3. Fishery
- Prioritize on aquaculture development to exceed the target of catch fisheries production
(27.32 million ton by 2015)
4. Nickel
- Increase the production by focusing on smelter development in Maros Regency
5. Oil & Gas
- Gas exploitation in: (i) Donggi Senoro, Banggai Regency, Centreal Sulawesi, (ii)
Mamuju Regency, West Sulawesi, (iii) Wajo Regency, South Sulawesi
- Petroleum exploitation in Luwuk Regency, Central Sulawesi
- Development of oil & gas field in Karama, West Sulawesi
Major projects with private investments planned in Sulawesi (as currently indicated by the
validation process of KP3EI secretariat) include number of projects in the sectors of Fisheries
(48 projects); nickel mining (5 projects); food agriculture (4 projects); oil and gas (4 projects);
cocoa (3 projects), cement industry (1 project) and gold smelter (1 project).
In terms of investment volume, the largest single project investment is the laterit nickel mining in
Morowali (to be finalised in 2015) and LNG Refinery development and operation in Donggi-
Senoro (finalised in 2015), both share the largest investment of IDR 25,000 billion each. While
the fisheries projects combined altogether totalling only in IDR 3,612.7 billion, a very small share
in comparison with investment in nickel (IDR 57,078.0 billion) and oil and gas activities (IDR
39,928.2 billion). A list of these economic projects can be viewed in detailed in Appendix A.
Main Policies and Regulations 2.2.2
In order to achieve the objective of the economic development in Sulawesi EC, several policies,
regulations and infrastructure developments are put forth in order to enhance the
implementation of MP3EI (i.e. regulations on land conversion and spatial plan area) while some
are dedicated to control and manage the economic activities (i.e. application of international
standards, regulatory control for fishing activities). The planned infrastructure developments are
intended to support other economic activities (e.g. private investments) envisaged in EC Plans
(i.e. improving access roads, port capacity, powerplants development etc). The planned
policy/regulation and goals for infrastrucutre development can be seen in Appendix A.
Overview of MP3EI Planning in the Economic Corridor
9
Main Planned Infrastructure 2.2.3
Main planned infrastructure in Sulawesi entails namely developments in transport and energy
sectors, assisiting and creating synergy witht the mining activities.The oad development is
planned to link Palu and Parigi, and another toll-road will also be constructed to connect
Manado and Bitung. Among other transport infrastructure planned in the region there is the port
development in Makassar, international port in Bitung and airport development in Tampa
Padang.
Planned energy infrastructure in the region include development of three powerplant units in
Lahendong, powerplants in Amurang, Barru, Kendari and Janeponto; and Hydro-powerplants in
Poso. A water supply infrastructure is also planned to be developed in Makassar city. The
overview of planned main infrastructure can be viewed in detail in Figure 2.3 below.
Figure 2.3 Main planned Infrastructure in Kalimantan EC
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2.3 Overview of Autonomous Provincial Planning
Along with the MP3EI planned development in Sulawesi EC, it also important to acknowledge
the information on autonomous provincial plans such as RPJPD (Long Term Regional
Development Plans), RPJMD (Mid Term Regional Development Plans) and RTRWP (Provincial
Spatial Plans). Considering the key components and priorities of these provincial plans in the
EC in further SEA analyses will help to identify the likely conflict potential between the MP3EI
planning within the corridor and the provincial planning on various stages of implementation.
The autonomous planning in Sulawesi that would be considered in the assessment include, but
is not limited to, the following :
Provincial planning of North Sulawesi (RPJPD, RPJMD and RTRWP)
The RPJMD of North Sulawesi was legalised under Regional Regulation No.4/2011 and
sets the mid-term regional development plan for 2010-2015. The mid term development plan
refers to the RPJPD 2005-2025 that outlines the long term development plan.
The proposed spatial planning for 2011-2031 was prepared and is still undergoing the
finalsiation process in the BKPRD/regional board for spatial planning coordination.
Provincial planning of Central Sulawesi (RPJPD, RPJMD and RTRWP)
The RPJPD of Central Sulawesi Province was legislated under Regional Regulation
No.6/2009 and set out the long term regional development plan for 2005-2025. The current
Provincial spatial planning of Central Sulawesi has not been finalised.
Provincial planning of South Sulawesi (RPJPD, RPJMD and RTRWP).
The RPJPD of South Sulawesi Province was legalised under Regional Regulation No.
10/2008 and set the long term development planning for 2008-2028. While the RPJMD was
legislated under Regional Regulation No.12/2008 and sets the 5 year development plan for
2008-2013. In the time of compiling this report, a new mid term development plan (RPJMD
2014-2019) is in the preparation process.
Provincial spatial planning (RTRWP) of South Sulawesi has been finalised under Regional
Regulation No.9/2009 and set the spatial planning direction for 2009-2029.
Provincial planning of Southeast Sulawesi (RPJPD, RPJMD and RTRWP)
The RPJPD of Southeast Sulawesi outlines the long term development plan for 2005-2025
and supported with the mid term development plan in 2008-2013. The most currrent
provincial spatial plan (RTRWP) of Southeast Sulawesi was legislated under Regional
Regulation No. 3/2004 and outlines the spatial planning directives for 2004-2019.
Provincial planning of Gorontalo
Information regarding the RPJPD and RPJMD of Gorontalo province have not been
obtained at this stage, however it is of key importancue to identify these plans at the latter
stage to get a better understanding of the planning situation. On the other hand, Gorontalo
provincial spatial planning (RTRWP) was legislated under Regional Regulation No.4/2011
and set the spatial planning direction for 2010-2030.
Provincial planning of West Sulawesi (as it is a new province, most of the planning usually is
still included within the previous province, South Sulawesi)
Overview of MP3EI Planning in the Economic Corridor
11
2.4 Overview of major ongoing/to-be-implemented projects
As a result of the adopted MP3EI planning approach combining the national priorities with the
bottom-up projects suggested in the regions, the MP3EI represents most of the major
developments within the EC territory. However, there are also some already long-prepared
autonomous development projects in Sulawesi (provincial plans) that may generate cumulative
impacts if taken together with MP3EI planning in the EC.
Some of those autonomus developments can be summarised as folllow:
a. North Sulawesi
High priority provincial projects are already proposed to be included in MP3EI (including
Bitung international port development, Trans-Sulawesi railway that links Manado-Bitung,
road enhancement that links Atinggola-Maelang-Kaiya in 121.5 length etc). Nonetheless,
other autonomous developments that can be considered in North Sulawesi are1:
- Highway (toll road) development from Manado toTomohon (timeframe plan: 2015-
2021) and Kairagi-Mapanget (2017-2021)
- Bridge development that links Bitung-P Lembeh, timeframe plan: 2017-2021
- Regional terminal development in BIMINDO (Bitung-Manado) metropolitan areas and
KAPET (Integrated Development Zones), commencing from 2013-2015
- Railway developments that link urban zones of Bitung-Minahasa-Manado (timeframe
plan: 2022-2026)
- Inter-cities railway developments that link Bitung-Kema-Belang-Tutuyan-Molibagu,
timeframe plan: 2014 until 2026
- Development of a number of powerplants: (i) steam powerplants (PLTU) in Kema,
Lilang (50 MW) in North Minahasa regency and Powerplants Teep-Moinit, Tenga in
South Minahasa (50 MW); (ii) Hydro power plants Poigar (30 MW) in Bolang
Mongondow regency and (iii) Geothermal powerplants Ambang (40 MW) in Bolang
Mongondow Timur regency
- Airport development in Miangas, Talaud regency (timeframe plan: 2012-2014)
b. Central Sulawesi
Provincial autonomous development to be included in the MP3EI include: road development
that links Soroako-Bahodopi in Morowali regency, bypass road developments that link Palu-
Parigi (36.45 km) and Poso Energy Hydro powerplants (3x 65 MW). Other (ongoing)
autonomous developments2 to be implemented out of MP3EI are:
- National strategic road developments that will link Batubere-Kolonodale, Mamboro-
Pagirimpu, Sausu-Manggalapi-Palolo and outer ring road in Palu city
- Highway/Toll-road developments that links Pantolan-Palu, Molosipat-Kasimbar-Toboli-
Poso-Tindantana and Toboli-Pantoloan
- Geothermal powerplants development in Marana, Donggala regency (40 MW)
1 Source: North Sulawesi Provincial Spatial Plan (RTRWP Sulawesi Utara 2010-2030)
2 Source: Central Sulawesi Provincial Spatial Plan (RTRWP Sulawesi Tengah 2012-2032)
12 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
c. West Sulawesi
Most of the major projects under the provincial development in West Sulawesi already have
been included in the MP3EI. i.e.enhancement of Tampang Padang airport, road-development
that links Majene-Poliwali and Hydropower plants development (PLTA) Poko (2x117 MW) and
PLTA Karama (450 MW).
d. Gorontalo
Similar to West Sulawesi, most major projects in Gorontalo provincial plans are already/to-be
included in MP3EI plans (i.e. Gorontalo Outter Ring Road improvement, Jalaludin airport
enhancement, Powerplants/PLTU Gorontalo 1 (50 MW), PLTU Gorontalo 2 (2x50 MW) and
Gorontalo Peaker (25 MW)).
e. Southeast Sulawesi
Information on the content of the provincial spatial planning documents was not available when
this report was written.
Considering the scale of the cumulative impacts that may be generated as a result of MP3EI
implementation combined with developments prepared within the autonomous planning
processes on the provincial level, more thorough and comprehensive review of the planned
interventions and projects will be undertaken at scoping stage to identify possible strategic
impacts.
Overview of MP3EI Planning in the Economic Corridor
13
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14 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
Summary of Relevant Baseline Features 3
This section outlines the strategic baseline features in Kalimantan EC structured into the
following categories: Environmental Quality (includes Water, Air & Climate, Land & Soil);
Ecosystem (Biodiversity, Forests, Coastal degradation); Socio-Economic Aspects (Human
health, livelihood, Industry and mining, Energy & waste) and Environmental Management. This
introductory analysis based on literature and elementary statistical data interpretation, focuses
on the strategic baseline categories and is aimed to assist to the process of identification of key
issues relevant for the EC SEA. Further analytical activities, including GIS mapping, are
currently undertaken to further improve the scoping process
3.1 Environmental Quality
Water 3.1.1
There is no systematic and comprehensive monitoring of water qualitiy in rivers in Indonesia. In
2011, Ministry of Environment conducted a monitoring of river water quality in 33 provinces. The
results showed that only one river in Sulawesi (namely Lariang River in Central Sulawesi) meets
the quality standard3. Along with this accidential report, there are many documented cases of
heavy water pollution in rivers across the EC. For example eight rivers located in regencies and
municipalities across Gorontalo province have been reportedly polluted with hazardous
inorganic chemical substances. (The Jakarta Post, March 19, 2013). Pollution of water bodies of
Central Sulawesi (namely Palu River, Palu Bay, Lake Lindu, Lake Poso, Lalong bay, Podi river,
Poboya, Bahodopi) has been indicated as a major issue in SEA on Local Development Plans
(Sucofindo 2011).
Among the main sources of pollution poor municipal waste management (both solid waste and
wastewater), industrial wastewater discharge, contamination of water by often highly toxic
leachate from the tailings and other residues from mining operations (gold, nickel) can be listed.
An important factor affecting water quality with impact on coastal marine environment is the
content of soil particles, causing sedimentation and accumulation of sediment-attached
nutrients. Elevated levels of erosion are associated with poor watershed management and land
use change. This problem is also apparent in the system of Lake and River Tondano in North
Sulawesi, where extensive silting and euthropication severly degraded the environmental
conditions of the lake.
Air and Climate 3.1.2
Ambient air quality is an issue relevant mainly for urbanized areas and areas adjacent to
industrial sites in Sulawesi. Systematic monitoring in Indonesia is carried out only in major cities,
among which is also the city of Makassar in South Sulawesi Province. Available data (see figure
below) indicates serious air pollution situation with average concentration values for main
polluting substances fairly exceeding standards established by legislation and WHO guidelines.
3 Water quality standard refer to Decree of State Minister of Environment No 115/2003 regarding Guidelines for
Determination of Water Quality Status and also to refer to criteria of water quality Class I and II under Government Regulation No 82/2001
Summary of Relevant Baseline Features
15
Table 3.1 Average pollutant concentration during the periods of 2001-2010
Parameter AverageStandard
DeviationRange INAAQS
WHO
Guidelines
SO2 76 51.7 8.6 - 253 60 -
CO 1041 534 66.7 - 3709 - -
NO2 43.2 21.1 10.3 - 99.5 100 40
O3 54.5 27.8 17.3- 226 50 -
Pb 0.7 0.37 0.14 - 2.28 1 0.5
TSP 188 85.6 46.4 - 565 90 -
PM10 54.6 16.9 20.6 - 85.72 - 20
INAAQS = Indonesia National Ambient Air Quality Standard; WHO = World Health Organization Unit : (µg/m
3)
Source : Sattar et al., 2012
It can be estimated, that situations in other large urbanized areas throughout the region will not
be significantly different. Concerns regarding the low ambient air quality have arisen for instance
within the SEA on Local development plans in Northern Sulawesi – Poboya, Moilong, Toili and
western Toili (Sucofindo 2011).
A combination of emissions from traffic and industrial sources can be regarded as the main
drivers for air pollution in urban areas, however, a more systematic analysis of the limited data
available is needed to establish proper baseline for furhter SEA steps. Ocassionally, the ash
emissions associated with the vulcanic activity can bring about short-term but significant and
large territorry affecting drops in the ambient air quality.
From the prespective of Climate Change, the land-use change induced emissions are primary
contributors to the total emissions of GHG in the region4, while emissions from industry
(including energy sector) and waste management (e.g. disposal of freon air conditioning, or
landfill gases emissions) constitute arguably less significant problem, given to a relatively low
level of industrial production and large share of electricity generated by hydroplants in Sulawesi.
Land and Soil 3.1.3
From the Sulawesi land area of 18,852,236ha approximately 12.488.000ha are forested areas
(66.24% of total land) and the remaining is allocated for cultivation activities such as
paddyfields, dryland farming, plantation, non-agriculture activities (settlement, industries, mining)
and other land use. Based on Sakernas (2008), Sulawesi wetlands areas accounted for
approximately 892.256 ha (4.73% of total land of Sulawesi) where most is allocated for technical
and rainfed irrigation wetlands. South Sulawesi shares the largest area of wetlands with total
area of 568.748 ha (12.17 % of total Sulawesi land).
Land other than forests and non-agricultural areas is allocated for plantation activities mostly in
a form of community based plantation. The major part of plantation land is allocated for five
main commodities such as palm oil, coconut, rubber, cocoa and coffee. Cocoa has the largest
share with most of the cultivated land concentrated in South, Central and Southeast Sulawesi.
Data on plantation areas for different commodities in 2006 is provided below.
4 The share of emissions from land-based sectors (Land Use, Land Use Change and Forestry – LULUCF, including peat
fires and agriculture) is approximately 67% of total national emission, the largest of any sector, accoridng to the MoE in 2010 (BAPPENAS, GIZ). Consequently, for the reasons stated above, even higher figure (i.e importance of the LULUCF in the emission inventory) can be estimated for Sulawesi.
16 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
Table 3.2 Extent of plantation Land in Sulawesi (2006)
Province Plantation land (ha)
Palm oil Coconut Rubber Cocoa Coffee
North Sulawesi n/a 269.368 n/a 10.263 9.579
Central Sulawesi 48.431 171.705 3.160 221.812 10.714
South Sulawesi 24.490 115.535 19.475 250.233 67.592
Southeast Sulawesi 2,966 54.358 n/a 200.065 10,703
Gorontalo n/a 62.933 n/a 9.597 1.642
West Sulawesi 75.154 67.643 1.209 137.112 26.73
Source: Ministry of Agriculture, 2007
Information regarding the ex-mining site locations available from the inventory conducted in
selected 20 provinces by the Ministry of Agriculture (2006)5 indicate that ex-mining sites in
Sulawesi can be found in North Sulawesi (2.438 ha), Gorontalo (3.635 ha), but namely in
Central Sulawesi (289.417 ha), which constitutes of the highest figure among all inspected
provinces (with South Kalimantan displaying the second largest area of ex-mining sites with a
total of 28.226 ha) (Ministry of Agriculture, 2006). Two major mining companies’ concession
areas are located in South, Central and Southeast Sulawesi (PT INCO Tbk/VALE) and in
Bahubulu, Southeast Sulawesi (PT ANTAM Tbk).
Unfortunately, comprehensive information on the land use dynamics for Sulawesi EC is not
readily available. However, a recent study conducted on South Sulawesi (Sumbangan Baja et
al. 2011) revealed that conversion of forested land to other uses is widespread. During the
period from 1997 to 2004 the largest conversion was into grassland and into agriculture land,
while in the period 2004-2009, the conversion of forest to other land-use decreased to a certain
extent. The conversion of dryland (mixed) agriculture into rice fields can also be recorded. Other
types of changes include conversion from dry land agriculture into rainfed paddy fields,
plantations, and residential areas, as well as some relatively small changes between other
different land-use/land cover types. The driving factors involved in the changes include the
opening of new paddy fields supported by government policy, infrastructure development,
natural disasters, large scale plantation development by the private sector, land clearing for
mining, certain socio-cultural aspects (such us loss of indigenous culture based on sustainable
use of local resources), and institutional factors and land-related policies including both
agriculture intensification programs on one hand as well as environmental policies on the other
hand6 (Sumbangan Baja et al. 2011).
The findings above seem to be consistent with aggregated information for the national level.
However, a detailed analysis of regional differences and specific driving factors for Sulawesi EC
will require more detailed information on land-use change patterns across all provinces. The
need to gather this additional information will be determined during the subsequent scoping
stage of the Project.
In terms of soil degradation, reference material indicates that it occurs as a result of land use
change and unsound agricultural practices in Sulawesi; namely in the form of erosion and
contamination. Excesive use of fertilizers and pesticides is relevant particularly for plantation
agriculture. Other contributing factors are mining (contamination with heavy metals e.g.mercury,
and other toxic substances) at and around the nickel and gold mining localities, and at the waste
management sites. Soil pollution has been reported e.g. from North Sulawesi - Poboya, Moilong,
Toili, West Toili and Bahodopi (SEA on Local Development Plans, Sucofindo 2011).
5 Published in: Ministry of Environment: The State of the Enironment Report in Indonesia 2007
6 e.g. Green Movement of South Sulawesi (Sulawesi Selatan Go Green) controling the rate of sedimentation in
Jeneberang, Saddang, WalanaE catchment to maintain the performance of Bili-Bili dam and hydropower of Bakaru, and to prevent siltation of Lake Tempe through the tree planting program in each catchment (Pemerintah Provinsi Sulawesi Selatan, 2005).
Summary of Relevant Baseline Features
17
Erosion is enhanced especially by deforestation and agricultural activities in areas with
complicated geomorphology and steep slopes. Large territories of Sulawesi are prone to
landslides.
3.2 Ecosystems
Biodiversity 3.2.1
Terrestrial Biodiversity The occurence of terrestrial endemic species in Sulawesi is particularly noteworthy, as out of
127 occuring mammal species 72 (62%) is endemic, which makes Sulawesi a region with one of
the highest rates of endemic mammals in the world. If bat species (i.e. species with better
potential for migration) are not counted, then the share of endemic mamals increases to
stunning 98%. In addition, 34% of Sulawesi’s nearly 1500 bird species are endemic. The
northern peninsula of Sulawesi (Minahasa, Totabuan and Gorontalo) can be regarded as a
particularly biodiversity-rich area in the region, as it is home to 86% of 103 types of endemic
birds and 20 types of endemic bats.
The general characteristics of other terrestrial fauna in Sulawesi are unfortunately not thouroghly
documented. 25 species of amphibians are known, as well as 40 lizards and at least 52
terrestrial snakes. In addition, there are 38 species of large swallow-tailed butterfly.
Researchers have also found 67 endemic species of fish in Sulawesi's dwindling mangrove
forests.
Of particular interest are the follwing species:
Two wild cattle species, the Lowland anoa and the Mountain anoa. Both are listed as
Endangered by the IUCN. Little is known about these animals but they are heavily hunted
for food and their horns.
Babirusa, also known as 'pig-deer, comprises three species of pig. Each male babirusa
sports a set of four tusks, two of which stick through their snout. All three species are
threatened with extinction.
Sulawesi palm civet which is classified asVulnerable. This predator lives and hunts in a
wide-variety of habitats.
Crested black macaque is called the most threatened primate on Sulawesi. It is killed for
bushmeat and caught for the pet trade. In addition, deforestation and mining have taken a
heavy toll on its habitat. The species is considered Critically Endangered.
Maleo, a chicken-sized bird. They nest in traditional sites, over a third of which have been
abandoned recently due to human impact. They lay one massive egg in meter-deep pits,
which humans sometimes poach for food.
Newly discovered species include e.g. the Togian White-eye, a small olive black and white
passerine, which is likely endangered; the Togian hawk-owl in 2004; and a rediscovered species
of pygmy tarsier in 2000.
Sulawesi also has several karst7 areas, the most famous one is Karst Maros-Pangkep with total
area of 30.000 ha, the second largest karst in the world. It has a very rich biodiversity with more
than 284 flora species where 30 of them are protected and endemic species (Fiscus spp,
7 Geological formation shaped by the dissolution of a layer or layers of soluble bedrock (typicaly limestone). The erosion
often results in formation of specific landscape rich in caves and other distinctive geomorphological features.
18 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
Diospyros celebica) (PSL-UNHAS, 1997). The karst locations are also home to cultural heritage
sites (e.g. Prehistoric Park Leang-leang and Sumpang Bita)
Marine Biodiversity Sulawesi is surrounded by biodiversity-rich seas with large habitats of seagrass and coral reefs.
These habitats are home to leatherback, hawksbill, and green sea turtles, as well as dugongs
and six of the world's seven giant clam species. Whales that use the waters as a by-way include
sperm whales, pygmy sperm whales, and killer whales.
One of the marine biodiversity standouts is the Sulawesi coelacanth. This is the second species
of the prehistoric survivor and is classified as Vulnerable by the IUCN Red List because it is
threatened as bycatch (i.e. despite not being a primary target for fishermen). A study undertaken
by Ministry of Marine and Fisheries and LIPI (Ubaidillah et al, 2013) documented a number of
endangered aquatic and marine species in Indonesia. In Sulawesi alone, the list of marine
species categorized as endangered by IUCN Red list include: scalloped hammerhead
shark/Sphyrna lewini (endangered) occuring in both beach- and offshore waters of Sulawesi,
banggai cardinalfish/Pterapogon kauderni (endangered), with distributions in Lembeh Bitung
strait, North Sulawesi and Luwuk, Central Sulawesi.
Freshwater/Aquatic Biodiversity Another example of an important biodiversity source are the freshwater ecosystems in the
ancient lakes located in Sorowako (Malili, Mahalona and Towuti Lakes) inhabited by number of
endemic species. Many other species in various Sulawesi freshwater habitats are threatened
with extinction (see table below).
Table 3.3 Freshwater endangered species in Sulawesi
Species Name Habitat & distribution in Sulawesi Status (IUCN Red
List)
Duck-billed buntingi (Adryanichthys
kruyti) Poso Lakes, Sulawesi
Critically
endangered
Rockfish (Mugilogobius amadi) Poso Lakes Critically
endangered
Sulawesi Forest Turtle
(Leucocephalon yuwonoi)
(rivers, small swamps) Palu, Central
Sulawesi and Gorontalo
Critically
endangered
Cardinal Shrimp/Matano Blue Dot
Shrimp (Caridinia dennerli) Matano Lakes
Critically
endangered
Orchid Shrimp/Red Orchid Shrimp
(Caridinia glaubrechti) Endemic in Towuti Lakes Endangered
Black Tiger Shrimp (Caridinia
holthuisi)
Endemic in Mahalona, Matano and
Towuti Lakes and Petea river Endangered
Red Goldflake Shrimp (Caridinia
spinata) Endemic in Towuti Lakes Endangered
Harlequin Shrimp (Caridina
spongicula) Endemic in Towuti Lakes Endangered
Red Stripes Shrimp (Caridina
striata)
Endemic in Malili Lakes, distributed
also in Towuti & Mahalona Lakes Endangered
Celebes beauty (Caridinia
wolterckae) Endemic in Towuti Lakes Endangered
Source: Ubaidillah, Rosichon et al (2013)
Summary of Relevant Baseline Features
19
Forests 3.2.2
Total forest areas in Sulawesi represent 66.24 % of the total land of the region. Among different
forestry categories the largest share accounts for Protected Forests (4,836 ha).
Table 3.4 Territory of Forests Areas (in thousands Ha) in Sulawesi up to 2006
Province Protected Forests
Nature Reserves/Pre
servation Areas
Limited Production
Forests
Permanent Production
Forests
Hunting Forests
Convertible Production
Forests
Total Forests
Area
North Sulawesi
341 518 553 168 - 35 1.615
Central Sulawesi
1.490 671 1.476 501 5 252 4.395
South Sulawesi
1.944 775 856 188 14 102 3.879
Southeast Sulawesi
1.061 266 419 633 8 212 2.599
Gorontalo* - - - - - - -
West Sulawesi**
- - - - - - -
Total 4.836 2.230 3.304 1.490 27 601 12.488
Source: Ministry of Forestry (2008)
*) Forest areal of Gorontalo is still included in North Sulawesi Province
*) Forest areal of West Sulawesi is still included in South Sulawesi Province
Dueto production of valuable tropical wood, the forestry sector is an important source of income
in Central-Sulawesi and Southeast-Sulawesi (i.e mainly teakwood production). In the past,
wood and rattan were exported without processing, however, current governmental regulation
has banned the exports of unprocessed forest products.
According to the Forest Watch (2011), forests of different types and conditions comprise about
46.65 % of the Sulawesi territory. Approximately 80% of its original forest cover has already
been lost or seriously degraded in Sulawesi. Over 50 percent are considered to be in poor
condition, while 30 percent—mostly in the highlands (above 1500 meters)—are classified as in a
good condition. The current rate of deforestation is lower than much of Indonesia, primarily
because of large-scale loss of forests occured in the previous decades. Between 2000 and 2009
about 15 % of Sulawesi forests have been lost.
Table 3.5 Deforestation in Sulawesi provinces (hectares)
Forest cover 2000 Forest cover 2009 Forest loss
North Sulawesi 634.075,14 550,957.98 83.117,16
Gorontalo 822,380.41 729,170.68 93,209.73
Central Sulawesi 4,258,885.08 3,826,773.54 432,111.55
South Sulawesi 1,691,028.52 1,125,876.88 565,160.64
Southeast Sulawesi 2,297,743.06 1,949,252.34 348,490.73
West Sulawesi 1,003,073.55 857,322.76 145,750.79
Sulawesi 10,707,185.76 9,039,345.18 1,667,840.59
Indonesia 103,329,366.78 88,170,440.19 15,158,926.59
Source: Forest Watch Indonesia, 2011
Logging and conversion for different land-use, namely for the production of Cocoa and food
agriculture production, are the main causes of deforestation in Sulawesi (see section 3.1.3).
Forest limits are not apparent in the territory, and low level of public awareness combined with
poor regulation enforcement leaves the forest land vulnerable for small- and large-scale
20 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
encroatchment. Illegal logging plays significant role in the problem (South, West and North
Sulawesi), however, it is the lack of clear ownership rights to the forest land, that leaves
communities with little incentive to reject illegal logging or manage forests in a long-term
sustainable way.
Coastal Degradation 3.2.3
Pressure on coastal ecosystems is triggered namely by the rapid coastal development activities
(residential, fisheries, ports, etc.). Although much of the area has already been degraded,
mangrove forests are found in estuaries and along Sulawesi's large coastline. Removal or
damage of Mangrove cover (typically for firewood and development of aquaculture ponds)
results not only in direct loss of biotope and ecosystem functions but also triggers coastal
erosion. Noticable remains of large mangrove forests can be found, for example, in Boni Gulf
and islands in Southeast Sulawesi, along the Southern coast of Central Sulawesi, or Southern
Gorontalo.
Amongst other factors, overfishing is highly impacting (e.g. including blast and cyanide practices
and illegal gears), along with sea water pollution via industrial and domestic sewage discharge.
As admitted in the MP3EI document8, overfishing for large pelagic fish species in North
Sulawesi, and demersal fish species and shrimps in South Sulawesi, has already resulted in a
decrease in catches for both commercial and subsistent fishermen.
Much of the coral reef areas off the coast of Sulawesi are clasified as threatened. In particular,
large reef areas along the Western and Eastern coasts of South Sulawesi belong to the
categories ranging from High Threat to Critical (according to the ReefBase.org classification9).
Coastal reefs are however under pressure consistently along the whole coast of Sulawesi
mainland as well as adjacent islands.
In most cases, the overfishing (including destructive methods) and watershed based pollution
(river water pollution, siliting) are the main reasons for reef degradation. Coastal development
contributes to the degradation of reefs primarily in the areas along the coast of South Sulawesi
Province, eastern coast of Boni gulf, in North Sulawesi, and - to a certain extent - in the vicinity
of all coastal setlements across the region. Marine pollution is also an important factor for the
area adjacent to City of Makassar in South Sulawesi (ReefBase.org – ReefGIS10
).
8 Masterplan P3EI, 2011, English version, p. 128.
9 ReefBase is the official database of the Global Coral Reef Monitoring Network (GCRMN), as well as the International
Coral Reef Action Network (ICRAN). The ReefBase Project is housed at the WorldFish Center in Penang, Malaysia, with funding through ICRAN from the United Nations Foundation (UNF). 10
Stated description is based on interpreting the visualisations presented in ReefBase.org – ReefGIS webgis site.
Summary of Relevant Baseline Features
21
Figure 3.1 Coral reefs, Seagrass and Mangrove distribution in Sulawesi EC (BIG, 2013; Ministry of Marine Affairs and Fisheries, 2013 and Ministry of Forestry, 2013)
3.3 Socio and Economic Aspects
Human Health 3.3.1
With a population of 17.4 million (as of 2010, 7% of national total) and a land area of 174,600
km2
(i.e. approximately 10% of the Indonesian territory), Sulawesi has population density close
to the national average at 92 inhabitants per km2.
Predominantly rural in character, Sulawesi is dominated by low rates of urbanization
(percentage of population living in cities) across all provinces (ranging from 29.4 percent for
South Sulawesi to 19.7 per cent in Central Sulawesi) as compared to the national average of
44%.
A large share of this rural population lacks adequate access to health care, as reflected in the
poor performance of indicators such as Infant mortality rate (IMR) presented in the official
statistics (Indonesia Health Profile 2010). In West Sulawesi Province, this rate is the highest in
all of Indonesia, at 72 per 1000 live births, closely followed by Central Sulawesi with a IMR of
60 per 1000 live births. In fact, none of the Sulawesian Provinces reaches the national IMR
average of 34 per 1000 live births. West Sulawesi also exhibits the lowestvalue nationwide for
under five years of age mortality (96 per 1,000 live births).
22 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
In terms of Life Expectancy at Birth, indicating general health status of population, Central
Sulawesi, Gorontalo, Southeast Sulawesi, and West Sulawesi lagg behind the national average,
while more developed provinces of South and North Sulawesi reach values above the
Indonesian average (Indonesia Health Profile 2010).
Among communicable diseases of concern, higher prevalence of malaria exists in Central
Sulawesi reaching 2.08 cases per 1000 inhabitants, while Gorontalo and North Sulawesi
oscilate around the national average at 1.96 per 1000 inhabitants. In comparison, the figure in
Papua is over 17 per 1000 in habitants.
The number of reported AIDS cases remains well below the national average.
The whole of Sulawesi, i.e. together with most of the Eastern regions of Indonesia, fall into the
category of High Endemic Provinces in terms of Leprosy (values of Newly Case Detection Rate
(NCDR) higher than 10 per 100.000 inhabitants).
Elevated incindence of Dengue Haemorrhagic Fever (DHF) has been reported in North and
Central Sulawesi (in 2010 87,70 and 81,80 cases per 100.000 inhabitants respectively, with the
national average being 65,7). Note however that incidence of DHF is highly volatile and figures
can change substantialy over time.
Livelihood 3.3.2
The economy of Sulawesi is dominated by agriculture, securing 31.82% of gross regional
domestic product (GRDP) of Sulawesi, while second in line i.e. trade, hotel and restaurant
sector contributed only 15.24% in 2008. In terms of regional disparities, South Sulawesi
generates almost a half of Sulawesi GRDP, Central Sulawesi 15.90%, North Sulawesi 15.73 %,
South East Sulawesi 12.53%, West Sulawesi 4.39% and Gorontalo 3,33 %.There are
differences in the economy structure among provinces - the contribution of agriculture in South
Sulawesi is the smallest, while the contribution of manufacturing is higher than in the other five
provinces. North Sulawesi has more diversified economy with substanital shares of
construction,services, and trade (including hotels and restaurants) in GRDP.
About 50 % of the total workforce in Sulawesi finds employment in Agriculture. A substantial part
of the agricultural production on the island is small-scale (family farms). Despite this, Sulawesi is
the third largest food producing province in Indonesia, which accounts for 10 % of rice and 15 %
of national corn production. While having limited possibilities for expansion of cultivated land,
there is potenitial for further increase in productivity (e.g. irrigation, fertilizers, mechanization,
etc. are used less in Sulawesi than in other regions in Indonesia). Of certain importance is also
animal husbandry – South Sulawesi is the third cattle-producing province in the country.
Cocoa production area in Sulawesi measures 838,037 Ha (58% of Indonesian cocoa plantation
area, and 63% of national cocoa production volume). Most of the land for cocoa production is
owned directly by farmers (96%). As highlighted in the MP3EI document, despite increasing
planting area, production (and productivity) has been in decline in recent years, due to lack of
investment and other related factors11
.
Fisheriesemploy a large number of residents in Sulawesi, engaged mainly in small-scale coastal
fisheing using traditional boats and techniques, while modern fisheries and processing points
are gradually being developed as well along with aquaculture (both fish and shrimp) facilities.
Sulawesian fishery sector is the largest among all Indonesian regions.
Poverty statistics indicate an above national average share of people with low incomes, namely
in agriculture dominated Gorontalo (17,22 %), and Central Sulawesi (14,94 %), while South and
North Sulawesi provinces exhibit figures below 10% (2012). However the trend within the last
11
Masterplan PE3I, 2011, English version, p. 125.
Summary of Relevant Baseline Features
23
decade shows gradually declining figures. For example, Gorontalo displayeda high percentage
of 27,35 % of financially disadvantaged people in 2007.
Currently, as indicated in table 3.5 below, the more developed and richer provinces of North and
South Sulawesi attract more workforce, which in turn results in higher unemployment figures.
Table 3.6 Main employment characteristics in Sulawesi provinces
Unemployment rate
(2010, %)
Employment to population ratio (2010,
%)
Annual employment
growth rate (2006-2010)
Sulawesi Utara (North) 9.6 57.2 3.1
Sulawesi Tengah (Central) 4.6 66.0 3.0
Sulawesi Selatan (South) 8.4 58.8 4.6
Sulawesi Tenggara (Southeast)
4.6 68.6 4.5
Gorontalo 5.2 61.1 4.4
Sulawesi Barat (West) 3.3 69.1 6.3
Sulawesi (total) 6.9 61.6 4.2
Indonesia (33 Provinces) 7.1 62.9 3.2
ILO: Labour and Social Trends in Indonesia 2011
In agriculture dominted regions labour productivity, i.e. measured by output per worker, is
generally lower than in regions exporting natural resources or industrial products. West Sulawesi
and Gotonato belong to provinces with the lowest employment figures in Indonesia at
approximatly half of the national average in 2010.
Unfortunately, sectoral statistics on employment and their time-series, which would enable a
more detailed analysis of the importance of different economic activities in relation to the
livelihoods of local comunities in different Sulawesi regions, was not available at the time of
reporting.
A critical issue in some parts of Sulawesi especially in remote areas is the accessibility of safe
water. In South Sulawesi, only Pare-Pare city has the sufficient water infrastructure services
covering up to 80 % of housholds, while in Makassar the access to water services & sanitation is
relatively low, especially for the low income community (also due to relatively high price for
water utilities). Other areas such as Maros regency, Takalar, Jeneponto and Enrekang also face
with the same problem (USAID, 2013). In West Sulawesi, between 2009 and 2011, one third of
households do not have sufficient access to clean drinking water, and the share of the
population with access to clean drinking water tend to keep decreased between 2009 (66,5 %)
and in 201163,93% (BPS Sulbar, 2012).
Industry and Mining 3.3.3
Nickel mining in Sulawesi contributes approximately 7%t to the GRDP. The region holds 50% of
the nickel reserves in Indonesia. Majority of production comes from mines in Sarowako, South-
Sulawesi; where ore of low quality is partially processed for the export; Nickel ore is also mined
in Pomalaa in Southeast-Sulawesi. Other substantial deposits are located in Morowali Regency,
Central Sulawesi and Konawe Regency, Southeast Sulawesi. Due to a lack of procession
24 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
capacities most production is exported as ore. Many of these activities are associated with a
significant range of environmental problems. For example, air pollution, land degradation, and
disruption of ecosystems. Social challenges to local communities arise due to the large number
of migrant workers, as well as land disputes especially in relation to customary land.
In addition to Nickel, there are several other mining-related economic activities, notably asphalt
extraction on Pulau Buton (Southeast Sulawesi), gold in North Sulawesi, and limestone in South
Sulawesi. North Sulawesi is endowed with substantial deposits of copper, which so far have not
been extensively exploited.
Both oil and gas reserves in Sulawesi Economic Corridor are relatively low compared to other
regions of Indonesia with 0.64% and 2.69% of total national reserves respectively. Extraction is
also relatively difficult due to specific geographical conditions (e.g. complicated land and sea
contours). Nevertheless, an intensificatioin of extraction activities is planned in Central Sulawesi,
West and South Sulawesi.
Industrial production has a relatively minor importance in the Sulawesi economy. In addition to
the very limited mineral processing capacities, main activities take place within food-processing
(palm oil, cocoa, etc.), production of construction concrete from limestone (South Sulawesi), and
to a certain extent manufacturing (e.g. timber products).
Energy and Waste 3.3.4
As of 2012, the installed power generation capacity in Sulawesi was 1.731 MW (4% of national
total). The main transmission network consists of two mutually unconnected segments (located
in North and South Sulawesi provinces) with combined length 2.988 km for 150 kV, and 482 km
of 275kV. There are also many small autonomous systems serving individual localities across
the region.
A large proportion (well over 50%) of electricity generating capacity consists of hydro plants
located in South, Central and North Sulawesi. Geothermal production in Sulawesi is represented
through three 20-MW units at the Lahendong power plant. Complementary capacity provides oil
and gas generators. Further potential for renewables exist, as indicated by the number of related
energy projects envisaged within the MP3EI EC Sulawesi planning, such as the Karama
Hydropower Plant in West Sulawesi potentially consisting of three separate dams with a total
installed capacity of 4400 MW, and other hydro (especially in category of micro-hydro plants
below 200 kW) and geothermal projects (see indicative list of projects within MP3EI Sulawesi
EC). Solar energy potential has been used so far only in small scalle, as well as the potenital for
biofuel crops cultivation.
It is estimated (DESDM, 2006) that the micro-hydro potential in Sulawesi accounts for 154,23
MW (i.e. close to 30% of total potential in micro-hydro segment in whole Indonesia)12
. North
Sulawesi has the largest potential with 47.86 MW, followed by Central Sulawesi (36.37 MW) and
South Sulawesi (31.10 MW).13
With the exception of South and North Sulawesi, the rate of electrification (percentage of
population with access to electricity) remains among the lowest in the nation (e.g. Gorontalo
55.88%, and Southeast Sulawesi 57,90 %) and a lack of capacity to meet growing energy
12
Original source - DESDM, 2006. Blueprint Pengelolaan Energi Nasional (BP-PEN) 2005-2025. Jakarta: Departemen
Energi Sumber Daya Mineral - quoted in (Subekti & Sudibyo, 2011). 13
The existing potential for micro-hydro plants has been already partially utilized. From the 84,2 MW of combined
potential of North Sulawesi and Central Sulawesi, 56,19 MW were already utilised, leaving the remainder 28,03 MW for future use. On the other hand, South Sulawesi and Southeast Sulawesi have the potential of 52,2 MW with only 9,93 MW being utilised. A number of micro hydro power plants have been also constructed in West Sulawesi (Mamasa and Mamuju regency).
Summary of Relevant Baseline Features
25
demand is one of the barriers for economic development. For example, according to data from
the Department of Energy and Mineral Resources of North Sulawesi in 2011, there has been a
waiting list for 88,94 MW power users amounting to 13.409 customers, mostly from urban and
industrial areas.
According to the official indicator “percentage of households with access to proper waste
disposal in accordance with MDGs“ (Indonesia Health Profile 2010), only North and South
Sulawesi provinces exceed the national average of 55 %, while only about one third of
households have access to proper waste disposal in Gorontalo and Southeast Sulawesi.
Due to inadequate solid waste management systems, the whole region is facing serious
environmental and sanitation issues, including increasing levels of illegal waste dumping into
rivers, canals, and roads. As a part of the national program to improve waste management, a
project of Regional Sanitary Landfill in Mamminasata (South Sulawesi) has been puth forth (with
the support of Australian and Japan development assistance programs) as one of the pilot
projects assisting provinces to comply with with Law no. 18/2008 on waste management.
A study undertaken in Makassar shows that for residential wastewater, approximately 85% of
households have access to septic tanks/communal latrines but in areas with no sanitation
infrastructure (low-income illegal settlements), open defecation is practiced (McDonald, 2011).
Stormwater drainage channels are often blocked due to rubbish and sediment accumulation
(UNHASS, 2011 in Tjandraatmadja et al, 2011)). For non-residential wastewater, major volumes
of waste discharge are typically produced by commercial food enterprises, car dealers, wood
processors, supermarkets and other light industries (Tjandraatmadja et al, 2011). A feasibility
analysis for Geothermal Power Plant Lahendong’s focusing on wastewater quality in North
Sulawesi revealed that wastewater quality was affected by high arsenic concentrations
(exceeding the value limit (Hariyadi, 2012)). More thorough analysis on wastewater
management in Sulawesi (relevant locations) will be undertaken at the scoping stage,
Waste from mining (i.e. large scale tailings) pose the risk of soil and water contamination
destroying aquatic habitat, and pose threat to water resources used by humans. In the context
of Sulawesi i.e. considering its unique coastline, the risk of contamination of marine coastal
ecosystems is of particular importance, especially due to the fact that fisheries are a source of
livelihood for a large part of the population, whose health can thus be directly affected.
26 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
3.4 Environmental Management
Protected Areas 3.4.1
According to the Ecoregion Environmental Yearbook (SLHE) 52 areas in Sulawesi (together
with other locations in Maluku and Papua) account for 44,1 % of national conservation areas).
The protected areas consist of 13 Nature Reserves (Cagar Alam/CA), 14 Wild Reserves (Suaka
Margasatwa/SM), 4 National Parks (Taman Nasional/TN), 4 Grand Forest Parks (Taman Hutan
Rakyat/Tahura), 8 Nature Recreational Parks (Taman Wisata Alam/TWA), 6 Marine
Recreational Parks (Taman Wisata Alam Laut/TWAL) and 4 Hunting Game Reserves (Taman
Buru) (Kementerian Lingkungan Hidup, 2011). Among the most well-known parks on the island
is the Lore Lindu National Park (with as status of UNESCO Biospheric Reserve) comprising
229,000 hectares, Bogani Nani Wartabone National Park (300,000 Ha located in border area
between North Sulawesi and Goronato) and Rawa Aopa Watmohai National Park (105,194 Ha)
in southeast Sulawesi.
Most of the parks, however, suffer frequent encroachment related to illegal logging, mining, and
conversion into crops production land. Thousands of illegal gold miners have been found to
conduct their business in Bogani Nani Wartabone National Park (www.mongabay.com)14
Sulawesi also has three national marine parks: Bunaken, Wakatobi, and Take Bonerate.
Bunaken National Park includes islands, mangroves, seagrasses, and coral reefs. Taka
Bonerate National Park protects the Taka Bonerate atoll (and surrounding coral reefs), the
world's third largest atoll and the largest in Southeast Asia. Wakatobi National Park protects the
island chains and 25 coral reefs off Southeast Sulawesi.
The distribution of National Parks and other conservation areas in Sulawesi can be seen in
Figure below:
14
http://www.mongabay.com/profiles/sulawesi.html
Summary of Relevant Baseline Features
27
Figure 3.2 Map of Conservation Areas in Sulawesi
Environmental Conflicts 3.4.2
Poor environmental management practices, lack of environemntal regulation and low
enforcement of existing laws are often factors contributing to the worsening environmental
situation in Sulawesi.
Illegal logging is estimated to account for the 40 % of total production of timber on the national
level, and represents an important problem also in the Sulawesi context. It has been reported for
exapmle in the Morowali Conservation Park and Banggai forest in Central Sulawesi, where
organized groups of illegal loggers often camp in the forest for certain periods of time.
Indigenous residents in the area are unable to stop the illegal logging due to fears of violent
response (Jakarta Post 13 December 2012)15
.
Pollution and habitat destruction from mining poses a threat to biodiversity and ecosystem
functions as well as to human health. Mining has been even reported to occur within the
boundaries of protected areas. Publicized cases of conflicts represent following examples:
The Toka Tindung (gold) Mining Project in North Sulawesi caused controversy due to the
proposed, but unapproved, disposal of toxic mine wastes into a densely populated region in the
vicinity of the international Bitung Harbor and above the major fishing region of Rinondoran Bay
between Lembeh and Bangka. A conflict emerged asthe EIA approval issued in 2009 for the
mine was allegedly not compliant with legislation (according to the release published by
NGOs16
). Currently the mine is in operation.
15
Accessed through http://www.illegal-logging.info 16
Mines And Communities http://www.minesandcommunities.org/article.php?a=9984
28 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
Another examle of a social conflict triggered by the mining operations is the conflict over the
One Pute Jaya and Bahumotefe community lands in Central Sulawesi, designated for the nickel
mining projects developed by PT Inco, and the environmental impacts of the nickel processing
facilities located in Sorowako, North Luwu Regency, South Sulawesi reported by NGOs through
the Mining Watch web page.17
The National-wide issue of illegal mining can also be documented in Sulawesi. The problem is of
structural nature, illegal miners are often backed up by local and regional official structures in
oposition to the central government interests and large state or foreign mining companies
holding the legal licences. Organized illegal operations are sometimes being passed off as
"indigenous mining," providing a veneer of legitimacy that distracted environmental activists are
willing to accept (John McBeth, 2000)18
.
North Sulawesi's Minahasa Peninsula is currently experiencing intense illegal gold mining
activity. It has been estimated that 200 tons of mercury isused annually in Indonesia in the
recovery of gold from the illegal mines. Small scale mining activities are thus associated with
high risk of mercury contamination and severe impacts on human health.
Watershed management issues have been listed as a priority issue in SEA for the development
plans of Central Sulawesi Province (Sucofindo 2011), and in particular within the SEA for the
Local Development plans of North Sulawesi (Sucofindo 2011), where degradation and rapid
siliting of Tondano Lake – a popular tourist destination, important fish farming hub and source of
power for electricity generating turbines – is an issue of main concern for the local communities.
17
http://www.miningwatch.ca/sulawesi-communities-reject-inco-call-renegotiation-pt-incos-contract-work 18
http://www.indonesiatraveling.com/kalimantan/kalimantan-nature-reserves/west-kalimantan/418-illegal-mining-
kalimantan-and-sulawesi.html
Preliminary Overview of the Potential Issues for EC
29
Preliminary Overview of the Potential Issues for EC 4
Deforestation / Degradation of Forests Functions 4.1.1
Population growth and associated migration fuel the need for expanding livelihood opportunities,
together with expanding commercial plantations and other economic activities are the main
drivers of deforestation, that is especially noticable in South Sulawesi (Enrekang regency, Gowa
regency, Bone regency), and West Sulawesi. Considering the MP3EI Sulawesi EC plan to
expand plantation and other economic activities in areas that are currently left as protected for
conservation purpose, it will likely have an exacerbating effect. Among negative secondary
strategic impacts are, biodiversity loss, climate change (both on the micro level, and as
contribution to emissions of GHG), alteration of the hydrological regime of an affected territory
(including erosion and sedimentation problems, floods, impact on irrigation systems etc.).
The above mentioned physical and ecological impacts can also have corresponding knock-on
impacts to socio-economic factors such as, loss of agriculture yield, increasing costs of
production etc. Communities depending partialy on entirely on forests for their livelihood are
particularly vulnerable, and forests conversion can be source of social conflicts, especially in
case of customary forests.
Areas of specific concern include forested land throughout the region (especially in Central and
Southeast Sulawesi) and namely indigenous customary land. Indigenous communities are the
most vulnerable groups. Of particular concern is the conversion of mangrove to fishpond areas
relevant also in North Sulawesi & Gorontalo.
Air and Water Pollution 4.1.2
Air Quality One of the main drivers of the pressures to air quality is industrial activities (esp nickel smelter).
The nickel smelting/processing industries produce high levels of emissions, in particular SO2. In
most urban areas where many economic activities are in place, transport and industry sectors
are likely to contribute equally to the deteriorated air quality.
Emissions data for GHG resulting from deforestation and other land-use changes together with
emissions from industry, energy generation and transport indicate growing trends, thus
contributing to the effects of climate change, which are experienced even on micro-level (North
Sulawesi and Gorontalo).
Water Quality Several number of lakes in Sulawesi are known to have important biodiversity functions and are
currently the source of drinking water for a number of communities. The mining and nickel
development in the Sulawesi EC has the potential to increase water demand and conflict over
water resources in areas adjacent to mining. .
Increased discharge of wastewater associated with industrial centres (such as Bitung industrial
area and Manado, North Sulawesi) could affect water quality in terms of scale and cumulative
nature. In the case that no wastewater treatment plants are proposed as part of the plans,
waste-water volumes can be expected to increase in newly developed areas. Discharge without
treatment could affect the water quality in the catchment areas.
Water pollution is particularly relvant for urban areas close to major mining production such as
Sarowako, South-Sulawesi; or Pomalaa in Southeast-Sulawesi (nickel), and in general for
communities located in the vicinity of industrial areas and mining sites.
30 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
At some locations (North Sulawesi and elsewhere), the marine water intrusion constitute
significant risk, contributing to the vulnerability of the water resources already endangered by
floods and droughts.
Land and Soil Degradation 4.1.3
Land use change (especially conversion of forests for other use) and unsustainable land
management practices have often devastating impact on soil. Erosion and contamination
(pesticides, fertilizers) arecommonplace and with extending area of plantations, problems
escalate and generate impacts on hydrological regime and further downstream.
Overexploatation of soil and resulting decrease of productivity is associated with cocoa
plantations. Pollution caused by pesticides has been experienced in Pinasungkulan, North
Sulawesi, as well as other locations.
Of particular importance is the contamination related to mining (given the scale of mining
operation in the region). The continued mining development or insufficient control over illegal
miningwilllead to continued risk of further expansion of areas of contaminated soils and ground
water.
Among other land degradation factors relevant for the Sulawesi EC planning, soil pollution
resulting from improper waste management, both in municipal and industrial sectors, and the
land subsidence experienced in coastal metropolitan areas (Makassar) can be included.
Coastal Degradation 4.1.4
Potential issues regarding coral reefs loss due to coastal development and pollution related to
watershed management could potentially present disturbance to water quality.Transported
nutrients such as nitrogen or phosphorus can also affect the biodiversity of reef ecosystems.19
Localised coastal morphological issues (erosion and accretion) related to short term and long
term port development/expansion are one of potential issues should be considered. Land-use
change, particularly deforestation, and hydrological modifications have the potentialdownstream
impacts, beside the localised development on the coast.
Coastal population growth in deltas, barrier islands and estuaries may lead to widespread
conversion of natural coastal landscapes to agriculture, aquaculture, silviculture, as well as
industrial and residential uses (Valiela, 2006). Rapid urbanisation on the other hand, may trigger
consequences such as enlargement of coastal inlets and dredging of waterways for navigation,
port facilities, and pipelines. In consequence this may exacerbate saltwater intrusion into
surface and ground waters. Other major direct impacts of human activities could include
drainage of coastal wetlands, deforestation and reclamation in urban areas (e.g. Manado City,
North Sulawesi), and discharge of sewage, fertilisers and other contaminants into coastal
waters.
The coastal management that suffers from incomplete coastal areas zoning may affect
remaining areas with rich coastal ecosystems that are located close to ports and other coastal
19
As pointed out by the participants of the pre-scoping workshop of Sulawesi EC, the reef degradation
occurs namely in Sangihe and Talaud island regency, North Sulawesi; coral and mangrove loss is pressing
issue e.g. along the coast of South & West Sulawesi, Selayar island, small islands in Macan and Pasitalu,
North Sulawesi. Coral reefs areas off coast of Sulawesi, are mostly clasified as threatened. In particular,
large reef areas along the Western and Eastern coasts of South Sulawesi belong to the categories ranging
from High Threat to Critical. Additional threat is illegal fishing (Miangas Island, North Sulawesi).
Preliminary Overview of the Potential Issues for EC
31
infrastructures, and aquaculture areas. Such degradation will affect most coastal communities,
especially local fishermen.
Loss of Biodiversity 4.1.5
Sulawesi is particularly important for endemic species and unique biological communities,
particularly located around the lake systems and coastal areas. Increased mining and
agricultural activities, as well as the intensificatioin of fishing effort have the potential to further
disturb these ecosystems.
In addition to the continuined reduction of natural ecosystems area, the fragmentation and
disturbance by infrastrucutre and other developments could reduce the overall capacity of the
ecosystem to support biological diversity in its original extent20
. Of importance in Sulawesi is the
issue of overfishing and destructive fishing which could generate the loss of important marine
biodiversity as coastal ecosystems (coral reefs and mangroves) will also be disturbed. Hunting
and illegal trade with endangered species can contribute to the worsening of the overall
situatuon.
Roads and associated development can lead to habitat loss from cutting through valuable
undesignated habitat and leading to fragmentation of biotopes and migratory corridors.
Thisundermines the conservation effort, especially relevant for the endemic terrestrial species
living in the region.
Disaster Risk Management 4.1.6
Environmental degradation taking place due different number of factors (land use change and infrastructure development) have the potential to intensify the damage inflicted by natural disasters. Deforestation, erosion, overgrazing, overcultivation and incorrect agricultural practices amplify the effects of natural hazards. Land degradation and desertification pose a serious threat in the region in the wake of growing populations and enhanced demand for food. South and West Sulawesi regions are characterized by large populations in risk from negative impacts of climate change, including massive floods. One of the specific risks associated with seismic activity in Sulawesi is the impact of an earthquake event on stored tailings from mining activities. An earthquake could have the capacity to damage tailing dams containing contaminated materials. Loss of mangroves providing protective functions for the coastal ecosytems by reducing effects of waves and storms, whilst also stabilising shorelines (Polidoro et al. 2010) (Lacambra et al. 2008). Where mangroves have been destroyed due to coastal development and other increased human activities, villages and shorelines may be heavily impacted by storms and inundated by tidal waters (Irin 2012).
Particularattention needs to be paid to the communities living in locations adjacent to seismic
activity/fault lines, and coastal areas where storms and tidal water may present risk to
development (relevant for North Sulawesi esp. around the Ambag volcano mountain, Pomuman;
Lokon volcano mountain, Tomohon & Soputan volcano, Tompaso; Gorontalo and South and
West Sulawesi; flood risks prevalent in Sigi and Parigi Montong regency, Central Sulawesi).
20
Discussion during the prescoping workshop indicated that this is particularly relevant for North, South
Sulawesi (Maros regency, Bantimurung, small islands close to Macan & Pasitalu, Spermonde islands) and
West Sulawesi. Habitat destruction is a threat to endangered species in many locations, for example in
Manado bay, in coastal biotopes of small islands around Macan and Pasitalu islands, for Bangka island, as
well as for Limboto Lake in North Sulawesi
32 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
Human Health Risks 4.1.7
Inadequate access to basic health care and sanitary infrastructure contributes to the
comparatively poor public health in the region. Insufficient water supply infrastructure, both in
urban and rural areas is a widerspread problem, as well as poor access to health care in remote
areas including small islands (namely in South and West Sulawesi). Pollution-associated risks to
public health are key issues in highly urbanized areas with low ambient air quality, and in mining
adjacent communities (water contamination – e.g. mercury and other heavy metals
contamination in Central Sulawesi, or in coastal areas (along the coast of Totok bay & Buyat,
North Sulawesi)). Contamination of water resources by poor waste (solid and wastewater)
management is highly relevant for disadvantaged population groups both in rural and urban
areas. Unsound use of pesticides and fertilizers can have negative impacts on plantantion
workes and local communities.
TBC, Malaria and Dengue Haemorrhagic Fever are the communicable diseases of main
concern, relevant namely for South, West and Central Sulawesi. As aformentioned in the
baseline section, higher prevalence of malaria exists in Central Sulawesi while incindence of
Dengue Haemorrhagic Fever (DHF) reported in North and Central Sulawesi above the national
average (Indonesia Health Profile, 2010). However, note that incidence of DHF is highly volatile
and figures can change substantialy over time.
Prevalence of HIV/AIDS (of concern namely for North Sulawesi and Gorontalo) remains
relatively low, however, the current socio-demographical trends can contribute to increases in
the number of people belonging to vulnerable groups – migrant workers, mining workers in
remote areas, port workes and seafarers, poor urban population.
High rate of maternal/baby mortality and poor nutrition issues are relevant for disadvantaged
communities namely in South and West Sulawesi.
Anecdotally, increased occurences of endemic diseases such as schistosomiasis (relevant only
in Donggala regency, Central Sulawesi) have beenexperienced.
Livelihood Opportunities 4.1.8
The orientation of the regional economy on extractive industries results in relatively high per
capita economic output, that is however not always accompanied with growth in job
opportunities (e.g. large cash-crops plantation management is relatively low labour-intensive as
compared with traditional agriculture land cultivation).
Mining activities do not necessarily provide opportunities for local communities, as they employ
migrant workers possessing basic required skils and who acceptthe living conditions in the
mining localities. It also competes with the agricultural utilization of the land, which is the key
subsitence activity for rural communities. Fishery are a major source of employmentin Sulawesi
but mostly in the form of small-scale coastal fisheries, with traditional boats and techniques. The
change of livelihood from fishing is frequent, resulting in loss the of traditional knowledge and
social cohesion in coastal communities.
Aggregated information indicates that Sulawesi’s poverty rate is above the national average.
However, a more detailed analysis would be required to rule out the possibility that the living
conditions of the most disadvantaged groups are not neglected and do not go unreported.
Another key factor is the issue of subsistence livelihood of indigenous communities as pertheir
customary rights to forested land. The economic development activities pursued by external
investors or official authorities often dramaticaly limits the opportunities to continue with
traditional models of obtaining livelihood, and fuels social conflitcts.
Tendency that rises concerns regarding the future improvement of livelihood opportunities are
declining number of students in vocational schools.
Preliminary Overview of the Potential Issues for EC
33
Another barrier to the improvement of livelihood opportunities is inadequate public transport
system between regions and in large cities and small islands.
The areas of specific concern are located throughout the region, consisting of indigenous
customary land, as well as mining and plantation development areas (namely in South and West
Sulawesi). Vulnerable groups are indigenous communities, migrant and unskilled workers, as
well as the unemployed.
Environmental Management 4.1.9
In general, poor coordination and planning (including coastal management), combinedwith low
representation of indigenous communities and other vulnerable groups contribute to the
occurence of high number of environmental conflicts.
Low enforcement and compliance with existing environmental legislation and problems with
management of nominally „protected“ areas are prevalent throughout the region.
Promoting of sound environmental management practices (and regulation enforcement) is
particularly important in the sector of mining, forestry, and plantation agriculture. Combating
illegal mining (e.g. in Banggai and Morowali regency and in Palu city, Central Sulawesi, as well
as other localities of South and West Sulawesi) and logging activites is so far inefficient and
illegal activities take place even in designated protected areas.
Existing industrial activities are characterised by low use of innovative technologies and
methods (energy efficiency, low emission / low waste technologies etc.). Wastewater
management regulations are not sufficient and not enforced.
Other Specific Issues 4.1.10
The following issues transpired during the pre-scoping workshop with local stakeholders:
Inefficient energy use and growing energy demand (relevant namely for South & West
Sulawesi)
Illegal use of public transportation with limited access to public services (i.e. bentor
transportation in Ambon) (relevant in North Sulawesi & Gorontalo).
Marginalised local community due to inter-island migration activities (relevant in North
Sulawesi & Gorontalo)
Increased human trafficking and underage prostitution activities (relevant in North Sulawesi
& Gorontalo)
The above listed problems will be further addressed in the scoping stage of SEA.
34 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
Main Conclusions and Preliminary Recommendations 5Resulting from the Pre-Scoping
Based on the analysis of baseline conditions and issues identified for furtherstudy, this section
highlights likely risks and opportunities to be considered within the planning process and
formulates initial policy recommendations.
5.1 Identified Risks and Opportunities
Estimated Risks/Impacts
Rapid coastal development at the expense of remaining functional ecosystems
Risk of exacerbating soil degradation problems and water regimes during the conversion of
forests into plantation agriculture land and unsustainable agricultural practices
Impact of climate change on coastal lowlands (agriculture, fishery, disaster management)
Increase of water and air pollution from mining, transport and waste management
(Potential) Conflicts
Territorial/land use conflicts resulting from inconsistent permitting procedures.
Cross sectoral conflicts (mining vs. plantation vs. forestry).
Conflicts among stakeholders with conflicting permits (awarded from local authorities vs.
central authorities),
Conflicts among stakeholders with official permits vs. communities with customary claims.
Spatial conflict between natural protected areas and planned developments - transport
infrastructure, mining, plantation development
Management Issues
Illegal mining and logging and lack of enforcement of environmental legislation
Catchement/watersheds management improvement
Opportunities to be Explored
Climate change mitigation and adaptation scheme
Potential for improvement of waste and wastewater treatment infrastrucutre
Main Conclusions and Preliminary Recommendations Resulting from the Pre-Scoping
35
5.2 Initial Policy Recommendations
Directing the future development for plantation, production forests as well as physical
infrastructures in areas of bareland/marginal land.
Improving integrated coastal management
Improving financing (fiscal) policy for environmentally friendly infrastructure development,
public services facilities and social protection for the poor/weak communities.
Introduce systematic programme of compensations in form of investments to public
infrastrucutre and services for communities affected by envisaged MP3EI investments
Implement institutional measures to improve coordination between the central Government
and local governments regarding land use (permitting procedures related to mining,
plantation and forestry sectors).
Applying good environmental management and international best practices in the economic
development (both policy and project level).
Strengthening the legal framework and law enforcement to restore the function of
conservation and protected areas. Ensuring that new proposed developement areas
(production) are not harming the important ecosystem, biodiversity and local
culture/heritages.
Construction and development in areas located along the seismic fault lines should be
accompanied with complete and prepared hazard management and contingency plan, and
proper communication of these plans to the public and decision-makers, making them aware
of the measures should be ensured. Measures to protect financial investments are also
important as MP3EI plans are designated to attract more private investments to fuel the
economic activities in the region.
The mining development should consider whether the location is adjacent to existing
industry and urban areas, as well as a planned future port expansion. In this case, issues
like increased emissions should be considered for interaction and cumulative impact.
36 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
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Subekti, Ridwan A and Sudibyo, Henny. 2011. Kajian Potensi dan Tekno Ekonomi Pembangkit
Listrik Tenaga Miro Hidro (PLTMH) di Wilayah Sulawesi. Bandung: Pusat Penelitian Tenaga
Listrik dan Mekatronik-LIPI.
Sucofindo (2011): Final SEA report for 5 locations (Central Sulawesi), applied on Local
Development Plans, ESP-Danida.
Sucofindo (2011) Final SEA report for 1 location (Utara Province, North Sulawesi), applied on
Local Development Plan, ESP-Danida
Sucofindo (2012): Final SEA report (KSN Sorowako), SEA for Spatial Planning, ESP-Danida.
Sumbangan Baja, Muslimin Mustafa, and Samsu Arief: SPATIAL DYNAMICS OF LAND
USE/LAND COVER IN SOUTH SULAWESI, INDONESIA. Asia Geospatial Forum, 2011, 12 p.
(Conference paper).
Tjandraatmadja, Grace; Ahmad, A; Kirono, D; Larson, S; Salman, D, et al. 2011. Climate
Adaptation through Sustainable Urban Development in Makassar, Indonesia: Context and
challenged in urban water and wastewater services for Makassar, South Sulawesi, Indonesia.
Makassar: CSIRO and National Research Flagships Climate Adaptation
Ubaidillah, Rosichon; Marwoto, Ristyanti M; Hadiaty, Renny K; et al. 2013. Biota Perairan
Terancam Punah di Indonesia. Jakarta: Direktorat Konservasi Kawasan dan Jenis Ikan, Ditjen
KP3K, Kementerian Kelautan dan Perikanan dan LIPI
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http://iuwash.or.id/category/download-publication/regional-information-sheet/
Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
APPENDICES
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APPENDIX A
MP3EI Planning Information in Sulawesi EC
Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
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MP3EI Planning Information in Sulawesi EC
A-1
MP3EI Planning Information in Sulawesi EC A
A.1 Planned Policy/Regulations and Infrastructure Developments in Sulawesi EC
No Economic Activities Planned Regulation Planned Infrastructure/Connectivity
1 Food Agriculture
Expanding planting area by optimizing the utilization of land, the creation of new paddy fields, rehabilitation and conservation of agricultural land
Securing the availability and sustainability of food production through development of food reserves and storage, empowerment and institutional capacity building of farmers
Reducing the potential loss of quantity and value of post-harvest through improved quality storage and development
Improving financing access for farmers
Strengthening insititutions to support farmer’s empowerment and improve their coordination function
Improve access roads to reduce dependence on commercial intermediaries
Improve irrigation facilities, where production capacity is vulnerable to climate change if it continues to rely on simple irrigation dependent on rain
Revitalize and improve the capacity of existing warehouse and storage to increase the life of food in storage, and to reduce losses caused by bad storage
Improve access roads between farms and trading centers, to help farmers facilitate sales and reduce reliance on intermediaries who raise prices up to 30 percent of final price
Develop/improve farm irrigation networks, village irrigation networks, and micro water management as well as construct/repair pumps, wells, water ponds, etc
2 Cocoa
Providing active support during the rehabilitation and rejuvenation of plants, provision of cocoa cloned seeds, and controlling cocoa plant pests;
Increasing the implementation of financing schemes for fermentation of cocoa beans to produce higher quality processed products (butter, powder, cake) for export;
Diversifying export markets for refined products (butter, powder, cake) which will provide added-value in the value chain
Developing industry and home industry which will absorb food products of processed cocoa
Creating an efficient chain for cocoa trade, therefore enabling farmers and the industry to obtain a fair and adequate margin
Increasing the capacity of ports in Makassar, Mamuju and Manado
Increasing the capacity of storage facilities in trading centers and ports
Improving road access from the plantations area to processing industry, ports and regional as well as export trade centers
Increasing the capacity of infrastructure (electricity, water, telecommunications) in all areas of cocoa production and processing industries
A-2 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
Application of international standards for cocoa products
Increase business partnership between industry and cooperatives and SMEs.
Performing conversion and spatial area for the development of cocoa plantation and its processing industry
3 Fishery
Increasing the added-value of products with the provision of land conversion subsidies for the manufacturing of ponds/shrimp culture
Increasing activities for seaweed processing
Developing capture fishery-based Minapolitans to accelerate the development of fishery industry zones based on catch fisheries, as well as developing aquaculture Minapolitans
Developing a regulatory and supervisory systems that is more strict and enforceable for fishing activities
Performing conversion of mangrove areas into shrimp ponds according to the applicable requirements
Development of fish breeding centers/hatcheries to produce quality seeds
Construction and development of fishing ports
Development of Fish Processing Unit
Increasing the capacity of the ports in Makassar and Manado
Developing/improving access roads from fishing location to the port and a regional trade center
Developing a marine storage facilities, in the auction places and trading centers
Increasing the capacity of infrastructure (electricity, water, telecommunications)
4 Nickel Mining
Simplification of rules and bureaucracy (among agencies and ministries) to facilitate the activity initiations and mine operations
Improvement of the business process to make investments in nicel mining more atrractive, alleviate pressures associated with inefficiencies in terms of the acquisition of mining and manufacturing contracts
Improvement of land-related regulations and clarify land use through spatial planning
Government support in the form of incentives to investors in capital intensive industries
Power plants (energy availability) to meet the processing needs
Accessible roads between mining areas and processing facilities
Sea port infrastructure which will serve the delivery of equipment and raw materials from other areas, for instance from Papua-Kepulauan Maluku
5 Oil & Gas
Optimization through enhanced oil and gas exploration and production of local oil and natural gas
Providing a positive investment climate, enhancement of legislation and licensing of oil and gas activities
Increasing the synergies between government and relevant stakeholders
Providing incentives for the construction of refineries in the country
Increasing convenience for investors in running their business
Improving information about oil & gas availability
Improvement and development of oil and gas infrastructure to increase public access to natural gas and fossil fuel
Improvement and development of access to new exploration and exploitation areas, both on land and offshore
Development of refining oil and gas infrastructure
Development of infrastructure for fuel storage
MP3EI Planning Information in Sulawesi EC
A-3
A.2 List of KPIs and Their Designation for Specific Types of Economic Development
No Zones of Investment
Focus Designation Province
1 KPI Makassar Food Agriculture, Cocoa, Fisheries, Oil &
Gas, Textile, Food-Beverage, Other sector
South Sulawesi
2 KPI Maros Food Agriculture, Fisheries, Copper,
Other sector South Sulawesi
3 KPI Wajo Food Agriculture, Fisheries, Oil & Gas South Sulawesi
4 KPI Palopo (Luwu) Food Agriculture, Fisheries, Oil & Gas South Sulawesi
5 KPI Pare-Pare Fisheries, Food-Beverage, Other sector South Sulawesi
6 KPI Mamuju-Mamasa Cocoa, Palm Oil, Other sector West Sulawesi
7 KPI Palipi Food Agriculture, Fisheries, Other sector South Sulawesi
8 Kendari Fisheries Southeast Sulawesi
9 Kolaka Fisheries, Nickel, Iron-Steel Southeast Sulawesi
10 Konawe Utara Food Agriculture, Nickel, Iron-Steel,
Tourism, Other sector Southeast Sulawesi
11 Palu Food Agriculture, Fisheries, Other sector Central Sulawesi
12 Morowali Fisheries, Nickel, Palm Oil, Rubber,
Other sector Central Sulawesi
13 Parigi Moutong Fisheries Central Sulawesi
14 Banggai Fisheries, Oil & Gas Central Sulawesi
15 Donggala Fisheries Central Sulawesi
16 Poso Fisheries Central Sulawesi
17 Bitung Fisheries North Sulawesi
18 Manado Food agriculture, Fisheries, Tourism,
Other sector North Sulawesi
19 Minahasa Utara Fisheries, Food-Beverage, Other sector North Sulawesi
20 Gorontalo Food Agriculture, Fisheries, Other sector Gorontalo
21 Gowa Food agriculture, Timber South Sulawesi
22 Toli-toli Fisheries, Other sector Central Sulawesi
23 Tojo Una-una Fisheries Central Sulawesi
24 Sigi Fisheries Central Sulawesi
25 Buol Fisheries, Other sector Central Sulawesi
26 Boalemo Fisheries Gorontalo
27 Gorontalo Utara Fisheries Gorontalo
28 Pohuwato Food agriculture Gorontalo
A-4 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
A.3 List of Main Planned Infrastructure Projects
No Main Planned Infrastructure
Developers Description
1 Road: Palu-Parigi Ministry of Public Works Length 36.45 km
2 Toll Road: Manado-Bitung BPJT - Ministry of Public
Works Length 39 km
3 Powerplant Lahendong Unit
IV,V,VI PT PLN & PGE Capacity 3x20 MW
4 Bitung Port PT Pelindo IV & Ministry of
Transportation International Hub Airport
5 North Sulawesi Steam
Powerplant 2 - Amurang PT PLN Capacity 2x 50 MW
6 Tampa Padang Airport Ministry of Transportation Airport Expansion
7 Poso Hydro Powerplant PT Poso Energy Capacity 390 MW
8 South Sulawesi Steam
Powerplant - Barru PT PLN Capacity 2x50 MW
9 Southeast Sulawesi Steam
Powerplant - Kendari PT PLN Capacity 1x10 MW
10 Water Supply System -
Makassar City Ministry of Public Works
Development and Advancement of Capacity from 1000 l/s to
2000 l/s
11 Makassar Port PT Pelindo IV & Ministry of
Transportation Port Expansion
12 Jeneponto Steam
Powerplant PT Bosowa Energy Capacity 2x100 MW
A.4 List of Main Planned Economic Development Projects
No Projects Name Investment Value (IDR
Billion) Developers
Starting Period
End Period
KPI
Main Economic Activity - Food Agriculture
1 Development of Crop Seed Industry in Kab. Sidrap
3.5 Private 2011 2014 Makassar
2 Guard management / agriculture farming, West Sulawesi
265.0 Government 2013 Palipi
3 Development of nursery / seed for paddy, maize, soybean and cassava, West
Sulawesi
15.0 Government 2013 Palipi
4 Development Seed & Corn Processing
Industry 4.0
Mix (SOE, Private)
2007 2010 Pohuwato
Main Economic Activity - Cocoa
1 Cocoa processing plant 273.0 Private 2010 2013 Makassar
2 Cocoa processing plant 500.0 Mix
(Government, Private)
2012 2017 Mamuju-Mamasa
3 Processing of cocoa into butter and
powder 500.0
Mix (Government,
Private) 2013 2017
Mamuju-Mamasa
Main Economic Activity - Fishery
1 Building of packing house (along with packaging machine)
1.3 Government 2011 2012 Makassar
2 Development of PP Untia 364.0 Government 2005 2015 Makassar
3 Development of shrimp farming and shrimp processing place
61.0 Private 2011 2013 Makassar
4 Development of seaweed cultivation 108.0 Private 2011 Makassar
5 Development of shrimp farming 93.0 Private 2011 2013 Maros
MP3EI Planning Information in Sulawesi EC
A-5
6 Development of seaweed cultivation 1.0 Private 2011 Maros
7 cocoa processing plant 44.0 Private 2011 2013 Maros
8 Development of seaweed cultivation 53.2 Private 2011 Maros
9 Development of fish freezing industry and other aquatic biota in Bantaeng
21.0 Private 2011 2012 Wajo
10 Development of an ice industry and cold storage
8.0 Government 2011 2015 Wajo
11 PPI Bulukumba 22.0 Government 2013 Wajo
12 PPI Lappa Sinjai 13.0 Government 2011 Wajo
13 Development of shrimp farming 2.0 Private 2011 2013 Wajo
14 Development of seaweed cultivation 21.7 Private 2011 Wajo
15 Development of shrimp farming 67.0 Private 2011 2013 Wajo
16 Development of seaweed cultivation 28.6 Private 2011 Wajo
17 Development of smoked tuna fish processing centers in Kab.Luwu
10.0 Government 2011 2015 Palopo (Luwu)
18 Development of ATC and SRC seaweed industry Kab.Luwu
10.0 Government 2011 2015 Palopo (Luwu)
19 Seaweed Development Marketing Depot 2.0 Government 2011 2015 Palopo (Luwu)
20 Development of shrimp farming 75.0 Private 2011 2013 Palopo (Luwu)
21 Development of seaweed cultivation 49.0 Private 2011 Palopo (Luwu)
22 Development of shrimp farming 4.5 Private 2011 2013 Palopo (Luwu)
23 Development of seaweed cultivation 5.0 Private 2011 Palopo (Luwu)
24 Traditional fish market development (rehabilitation market)
1.5 Government 2011 Pare-Pare
25 Development of shrimp processing units 78.0 Mix
(Government, Private)
2012 2014 Pare-Pare
26 Development of shrimp farming 34.0 Private 2011 2013 Pare-Pare
27 Development of seaweed cultivation 27.0 Private 2011 Pare-Pare
28 Development of PPN Palipi 614.0 Government 2011 Palipi
29 PPI Manggolo 25.2 Government 2007 2013 Kendari
30 Development of PPI and fish processing industry
100.0 Government 2010 Togean
31 Development of fish processing units 7.7 Private 2004 2006 Palu
32 Development of Carragenan industry 150.0 Mix
(Government, Private)
2009 2014 Morowali
33
Development of fish processing industry (Development of PPI Tandaoleo, Making of Fish Home, Demersal Fish Hatchery,
processing / manufacturing industry)
150.0
Mix (Government,
Private) 2012 2014 Morowali
34 Development of Seaweed Cultivation
Area and Carragenan Industry 15.0 Mix
(Government, Private)
2012 2013 Morowali
35 Development of Carragenan industry 100.0 Mix
(Government, Private)
2009 2014 Parigi
Moutong
36 Development of Carragenan industry 100.0 Mix
(Government, Private)
2009 1014 Tojo Una-
Una
37 Development of Carragenan industry 100.0 Mix
(Government, Private)
2012 2014 Banggai
38
Development of fish processing industry (Revitalisation of PPI Pagimana, Making
Home Fish, Demersal Fish Hatchery, Industrial processing / manufacturing)
150.0
Mix (Government,
Private) 2011 2014 Banggai
A-6 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
39 Development of Carragenan industry 100.0 Mix
(Government, Private)
2012 2013 Banggai
40 Development of aquaculture industry and
management of freshwater fish 30.0
Mix (Government,
Private) 2013 2014 Sigi
41 Development of PPI Donggala and Fish Processing Industry
100.0 Government 2005 Donggala
42 Development of cultivation and
processing industry in Sidat 30.0
Mix (Government,
Private) 2013 2014 Poso
43
Development of tuna and people's tuna processing industry in Kab. Buol (part of the development of Outer Ring Fishing
Port Kab. Toli-toli)
30.0
Mix (Government,
Private) 2012 2013 Buol
44 Development of integrated fisheries (with industrial processing and preserving of
fish and other aquatic biota) 263.0 Private 2012 2014 Bitung
45 Development of processing and prervation of marine fish industry
200.0 Private 2011 2012 Bitung
46 Development of Seaweed Cultivation and
Seaweed (ATC) Processing Industry 100.0 Mix
(Government, Private)
2012 2014 North
Minahasa
47 PPI Amurang, North Sulawesi 20.0 Government 2007 Manado
48 PPI Bahoi (Sitaro), North Sulawesi 23.0 Government 2012 Manado
Main Economic Activity - Nikel
1 Expansion of Nickel Mining and Processing, Kab. Luwu Timur, South
Sulawesi (excluding hydropower Karebe)
15,000.0 Private 2011 2016 Palopo (Luwu)
2 Modernization and Optimization of Ferronickel Pomalaa-(Construction of
Coal Fired Power Plant)
4,500.0 SOE 2011 2013 Kolaka
3 Development of Nickel Pig Iron Plant in Mandiodo
7,578.0 SOE 2011 2014 Konawe Utara
4 Nickel Mining and Refining (including Nickel Ore Preparation Facilities
Development)
5,000.0 Private 2011 2016 Morowali
5 Nickel laterite mining (Mining and Processing of Nickel Exploration)
25,000.0 Private 2011 2015 Morowali
Main Economic Activity - Oil and Gas
1 Development of LPG terminal 6,748.2 Private 2009 2014 Makassar
2 Development of Gas Refining and Processing industry
5,580.0 Private 2011 Wajo
3 Construction and operation of LNG plants Donggi-Senoro
25,000.0 Private 2011 2015 Banggai
4 Exploitation of upstream Oil and Gas in
Donggi-Senoro Gas Project 2,600.0
Mix (BUMN, Private)
2011 2015 Banggai
Other Economic Activity - Cement
1 Development of Cement industry 4,138.8 SOE 2011 2013 Pare-Pare
Other Economic Activity - Gold
1 Gold ore processing and refining, Gorontalo
2,375.0 Private 2011 2013 Gorontalo
APPENDIX B
Supporting Information
Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
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Supporting Information
B-1
Supporting Information B
B.1 Preliminary List of Relevant Stakeholders for Sulawesi EC
No Institution Groups Issues/Sectoral Relevance
1 Bappeda, South Sulawesi Government Regional planning
2 BLHD, South Sulawesi Government Environmental management
3 Bappeda, Central Sulawesi Government Regional planning
4 BLHD, Central Sulawesi Government Environmental management
5 Bappeda, North Sulawesi Government Regional planning
6 BLHD, North Sulawesi Government Environmental management
7 Bappeda, West Sulawesi Government Regional planning
8 BLHD, West Sulawesi Government Environmental management
9 Bappeda, Southeast Sulawesi Government Regional planning
10 BLHD, Southeast Sulawesi Government Environmental management
11 Bappeda, Gorontalo Government Regional planning
12 BLHD, Gorontalo Government Environmental management
13 PPLH Regional Sumapapua (Sulawesi) Government Environmental management
14 Universitas Sam Ratulangi University Network Agriculture and Environmental issues
15 Universitas Tadulako University Network Forestry and Environmental issues
16 Universitas Hassanudin University Network Marine and Fisheries ; Environmental
issues
17 Universitas Haluoleo University Network Environmental issues
18 Universitas Negeri Gorontalo University Network Food-agriculture issues
19 WALHI NGO Environmental issues
20 AMAN NGO Indigenous people issues
21 JATAM NGO Mining issues
22 KIARA NGO Marine and Fisheries issues
B-2 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
B.2 Minutes from Pre-Scoping Workshop
MP3EI SEA Minutes of Meeting
Meeting: Prescoping MP3EI SEA – Sulawesi EC/2013 Attendees: See Appendix A. Absent : -
Date: 08 October 2013 Time: 09.00-16.00 WIB Venue: Kayangan Room, Aston Hotel Makassar
Issues Action/Remarks
1. Opening of the workshop by KP3EI Connectivity WG
Framework for activities
Greening MP3EI and SEA process
Expected output of the activities
All to note (presentation)
2. Introduction from DHI-Integra
Introduction of SEA Team
Overview of workshop agenda
Expected output of the workshop
All to note
3. Introduction of the participants Attached
4. Screening for SEA video Moved to coffee break session
5. Workshop 1st Session a. Introduction on SEA
Overview of potentials and threats to environmental conditions from the proposed development.
Overview of the importance and principles of SEA
SEA development in Indonesia
Objective of baseline data workshop b. MP3EI SEA Project Implementation & Deliverables
Project Background, Team, Output and Scheduling
MP3EI SEA Approaches and Workplan (both for Policy and Economic Corridors)
Economic Analysis Input - Coffee Break (Screening for SEA video)
c. Expected output of MP3EI SEA Prescoping
Importance of Baseline Data
MP3EI SEA Database/Information System Management
Hands on Baseline Data Collection
- Overview of Potential National Strategic Issues - Assignment for group work activities - Overview of plenary discussion
d. More on SEA
Usual SEA steps
SEA and Planning, SEA and EIA
Next stage: Scoping!
All to note
6. Questions/concerns/feedbacks: 6.a. Veronica Kumurur – Universitas Sam Ratulangi, Manado
- Suggestion for SEA team to come up with the list of issues first then identify what baseline data required
- What methodology/references the team sourced to come up with 11 national issues? Concerns towards the identification of long list of issues should involve more stakeholders which are representative
The presoping/baseline workshop use a new approach in identifying important baseline features (based on valid data/studies) in Sulawesi before jumping
Supporting Information
B-3
enough. - The list of national issues do not necessarily relevant with the local
issues in Sulawesi
6.b. Roland Barkey – PPLH Universitas Hassanudin, Makassar - Has the experience in preparing SEA for RPJMD North Maluku, SEA
for mining sector in North Maluku, SEA for RPJMD Kab/Kota Bone-Bolango, SEA for RPJMD West Sulawesi and recently SEA for RPJMD South Sulawesi province)
- What is the extent of data validity as some studies have quite old data (e.g. Ecoregion Conservation Assessment in 2005)
6.c. Fidaan Azus – Bappeda, South Sulawesi
- Suggested to involve more stakeholders to identify the long list of issues as there was concerns that it will be premature to use the list of issues with very few stakeholders (private sector should be included)
- Suggested to hold prescoping/FGD within each province to involve more stakeholders
- South Sulawesi province has just recently prepared SEA for its local midterm development plan (RPJMD 2013-2018) – will be published for public in the third week of October.
6.d. Muhammad Akhsan – Bappeda, West Sulawesi
- There is a program supported by US Government that focus on agricultural (cocoa) development in upper land West Sulawesi called Millenium Challenge Corporation (MCC). Suggested to use the opportunities to use the data sources from MCC into SEA MP3EI study in Sulawesi EC.
6.e. Muhammad Lukman – Research Center for Marine, Small Island and
Coastal Areas Management - The information given in the workshop isby far the best available
information that the participants can provide, in the future this information might change thus the team should collect more information from different stakeholders/institutions
6.f. Mahir Takaka – AMAN
- The issues in Sulawesi should be seen in a whole comprehensive framework not by province and suggested to involve more community groups to address more social issues (indigenous community)
6.g. Herman Koessoy – Bappeda North Sulawesi
- Expected the team to have a complete analysis before scoping workshop.
- Suggested to identify more stakeholders to be invited to scoping workshop
- In his experience preparing SEA, there is a ‘High Level Meeting’ for echelon 1 or 2 only where questions should only be limited to decision making (yes/no), not identifying the issues anymore.
- Suggested that SEA to be done in a comprehensive method and result in a credible and quality SEA. Need to invite more various stakeholders to involve in the process and if possible, to do a field visit to each of the province to meet with the relevant institutions and get more data.
into conclusion of what issues are relevant in the EC. At this stage it is possible to begin to identify what baseline data is available and what important information can be obtained. It is expected that prescoping workshop would also result in recommendation of relevant stakeholders to invited to scoping. All to note. At this stage, we are trying to get all the available data and then out data team will select which one is more relevant. All to note and similar to answer for 6a. This stage is only the beggining for the SEA and will invite more stakeholders in the next stage. All to note All to note All to note All to note. Similar to answers in 6a and 6c, more stakeholders will be invited and the team will put the best effort to prepare a credible SEA but would need the help/support from local stakeholders too.
B-4 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
7. Group Assignments
Division into groups and debriefing on group assignments - Identification of issues relevant to Sulawesi (based on list of
nation-wide issues) regarding the available data and its spatial distribution
- Groups divided into three (a. North Sulawesi & Gorontalo; b. South Sulawesi & West Sulawesi; c. Central Sulawesi; Southeast Sulawesi were not present) and asked to work on potential key issues in province.
Exercise on potential key issues identification and baseline data collection
8. Plenary discussion
Summary of list of specific issues and available data/information: 1. Human Health
Following issues are relevant in South, West and Central Sulawesi:
- High incidence of emerging and infectious diseases – TBC, malaria and dengue (data available in Health Agency, Health Faculty Universitas Hassanudin); high incidence of HIV suspects (relevant in North Sulawesi & Gorontalo, data: health agency); increased endemic diseases such as schistosomiasis (relevant only in Donggala regency, Central Sulawesi)
- Environmental conditions negatively affecting human health – air pollution, noise (data available in Health Agency and Public Works, esp for Central Sulawesi there is a study undertaken by PPLH Univ Tadulako on mercury pollution exceeding the benchmark quality); heavy metal pollution in coastal areas (along the coast of Totok bay & Buyat, North Sulawesi)
- Insufficient water supply infrastructure, both in urban and rural areas (relevant in South & West Sulawesi, data available in Health agency, Public Works and PDAM)
- Poor access to health services in remote areas including small islands (relevant in South & West Sulawesi, data available in Health agency, Public Works)
- High number of population living in disaster-prone areas (relevant North Sulawesi esp around the Ambag volcano mountain, Pomuman; Lokon volcano mountain, Tomohon & Soputan volcano, Tompaso and in South & West Sulawesi; flood risks prevalent in Sigi and Parigi Montong regency, Central Sulawesi; data available in BPBD)
- High number of population atpotential risk as a result of climate change, including massive flood (relevant in South & West Sulawesi, data available in BPBD)
- High rate of maternal/baby mortality and poor nutrition issues (relevant in South and West Sulawesi, data available in Health Agency
2. Livelihood Following issues are relevant in South & West Sulawesi:
- High number of social conflicts involving indigenous communities – especially in case of mining and palm oil plantations development (data available in Social affairs agency, Kesbang and Police)
- High poverty rate (data available in BPS) - Declining number of students in vocational schools (data
available in Education agency) - Inadequate public transport systems between regions and in
large cities and small islands (Transportation agency)
- Rapid urbanisation (also relevant in North Sulawesi & Gorontalo, data available in BPS)
- Large scale mining conflicts affecting the local communities (mining vs agriculture) – data available in Forestry agency & ESDM
- Change of local livelihood esp from fishermen into vendor sellers (relevant in North Sulawesi & Gorontalo)
All to note and to be updated with prescoping report and further scoping process.
Supporting Information
B-5
- Low benefits of development distributed to the community (relevant in all Sulawesi)
3. Land and soil Following issues are relevant in South Sulawesi (prevalent in panden-panreng, lengkubale & tanahmea cape) & West Sulawesi:
- Increasing rate of agriculture land conversion (also relevant in North Sulawesi & Gorontalo; data available RTRW document and BLH)
- High rate of land degradation by industry/mining (prevalent in Bone and Gowa regency, South Sulawesi; data available in BLH and Forestry Agency); land degradation due to excessive use of pesticide in agropolitan area (Pinasungkulan, North Sulawesi)
- Increasing risk of soil erosion (data available in BLH and Forestry Agency)
- Soil pollution resulting from improper waste management/landfilling
- Land subsidence in coastal metropolitan areas (Makassar) - Forest areas land use conflicts (data available in Forestry
agency) - Inter-regional border issues (i.e. South Sulawesi and Central
Sulawesi) – data available in Spatial Planning agency/RTRW document and General Governance bureau
- Decreased agriculture land productivity (cocoa plantation) - Change of nature landscape due to land use change to
settlements/business activities (relevant in hills area in Manado, North Sulawesi)
4. Water Quality Following issues are relevant in South, North and West Sulawesi:
- Heavy river water, lake (esp lake Tondano in North Sulawesi), marine pollution due to domestic wasterwater (Bitung indusrial area and Manado, North Sulawesi) and arthesis water pollution (data available in BLH, R&D center for marine and coastal areas management UNHAS)
- Insufficient waste water management systems (data available in BLH, PPLH Unhas and BPBD)
- High vulnerability to floods and droughts (data available in BLH) - Marine water intrusion (also relevant in North Sulawesi, data
available in BLH) - Deteriorated water quantity and quality
5. Air Quality Following issues are relevant in South & West Sulawesi:
- High GHG emissions from deforestation (data available in BLH, Bappeda, ESDM and Forestry Agency)
- Increasing GHG emissions from energy, industry, transport and waste sector, agriculture, forestry and other land-use (data available in BLH, Bappeda and ESDM)
- Micro climate changes (esp relevant in North Sulawesi & Gorontalo)
6. Forests Following issues are relevant in South Sulawesi (Enrekang regency, Gowa regency, Bone regency) & West Sulawesi:
- High rate of deforestation and forest degradation (data available in BPKH)
- Local forest use often authorised inconsistently with national forest law (data available in BKSDA)
- Illegal logging (also relevant in North Sulawesi) - Land use change from forest to non-forest areas (mangrove to
fishpond areas) – relevant also in North Sulawesi & Gorontalo - Low use of non-timber forest products
- Unclear boundaries of forest areas 7. Biodivesity
Following issues are relevant in North, South Sulawesi (Maros regency, Bantimurung, small islands close to Macan & Pasitalu, Spermonde islands) & West Sulawesi (data available in PPLH UNHAS, Conservation laboratorium UNHAS and BKSDA):
B-6 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
- Habitat fragmentation (endangered habitat of ancient fishes in Manado bay, coastal habitat fragmentation in small islands around Macan and Pasitalu islands)
- High number of threatened species (especially in Bangka island where Dugong species exists)
- High vulnerability of biodiversity to climate change - Ecosystems overexploitation (including poaching, illegal trade of
flora and fauna, destructive fishing methods, human-wildlife conflict)
- Introduction of alien species - Low use of ecoregion assessment/study for conservation
management
- Loss of endemic species in Limboto Lake (North Sulawesi) 8. Coastal Degradation
Following issues are relevant in South, North & West Sulawesi: - High level of coastal habitat degradation (coral reefs loss
prevalent along coastal areas in Sangihe and Talaud island regency, North Sulawesi; coral and mangrove loss along the coast of South & West Sulawesi, Selayar island, small islands in Macan and Pasitalu, North Sulawesi; ) resulting from costal development, water pollution (including sedimentation), mining (especially offshore) and illegal fishing (Miangas island, North Sulawesi) – data available in R&D center for marine and coastal areas management UNHAS, BLH and Fisheries Agency in each province
- High vulnerability of costal ecosystems to climate change - High level of coastal erosion - Deteroriated aquaculture condition quality - Uncontolled reclamation in in urban areas (also relevant esp in
Manado city, North Sulawesi)
- Incomplete coastal areas zoning 9. Environmental management
Following issues are relevant in North, South & West Sulawesi: - High number of environmental conflicts (Data: AMAN, PPE
Sulawesi-Maluku)
- Weak coordination of planning systems (Data: BLH) - Lack of proper coastal management (Data: Dinas Kelautan &
Perikanan) - Difficulties in protected areas´ management (Data: Forestry
agency)
- Low level of environmental compliance enforcement (Data: BLH) - High incidence of floods due to the landscape changes and
inadequate drainage system in rural areas (esp relevant in North Sulawesi)
- Limited involvement of indigenous people (women) in environmental management esp in emission reduction program and degradation.
10. Mining & industries Following issues are relevant in South & West Sulawesi:
- Low use of innovative technologies and methods in industry (energy efficiency, low emission / low waste technologies etc.) – data: Industries and trade affairs agency, ESDM)
- Illegal mining using dangerous chemical materials (mercury or cyanide); small scale illegal mining is also prevalent Banggai and Morowali regency and in Palu city, Central Sulawesi.
- Insufficient regulations controlling the wasterwater management 11. Energy and waste
Following issues are relevant in South & West Sulawesi: - Inefficient energy use and growing energy demand – data: ESDM
12. Additional key issues: Natural disaster risks management - Inadequate disaster management infrastructure, relevant in North
Sulawesi (Ambag volcano mountain, Pomuman; Lokon volcano mountain, Tomohon & Soputan volcano, Tompaso) and Gorontalo:
13. Additional key issues: Land, Sea and Air transportation (relevant in
Supporting Information
B-7
North Sulawesi & Gorontalo) - Illegal use of public transportation with limited access to public
services (i.e. bentor transportation in Ambon) 14. Additional key issues: socio-cultural issues (relevant in North Sulawesi
& Gorontalo) - Marginalised local community due to inter-island migration
activities - Increased human trafficking and underage prostitution activities
Feedback and recommendation for following workshop/activities - SEA quality. Participant expected that the team should carry out
a credible SEA by using valid information and engaging more relevant stakeholders in the process and also comply with the applicable regulation related to SEA (Ministerial Regulation No.67/
- To improve the baseline data collection, participants suggested to meet different stakeholders as many as possible to get more comprehensive data/ not just based on the prescoping workshop
- Stakeholders identification. For further/following activities, more stakeholders should be invited including the private sectors as they are closely related with projects to be implemented
All to note and to be considered for the following activities.
B-8 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
B.3 List of Participants of Pre-Scoping Workshop
No Name Institution
1 Mahir Takaka AMAN
2 Dessy Rahmayanti Bappeda, Gorontalo Province
3 Muhammad Lukman
Center for Marine, Coastal and Small
Island Research & Development -
Universitas Hassanudin Makassar
4 Arthur Bappeda, Central Sulawesi Province
5 Mariam Alaiyya Bappeda, Central Sulawesi Province
6 Miranti Widya RP Bappeda, Central Sulawesi Province
7 Naharuddin Universitas Tadulako, Palu
8 Muhammad Akhsan Bappeda, West Sulawesi Province
9 Eka H Maharani Center for Ecoregion Management /PPE
Sulawesi – Maluku
10 Marini Center for Ecoregion Management /PPE
Sulawesi – Maluku
11 Herman Koessoy Bappeda, North Sulawesi Province
12 Roland Barkey
Center for Environmental
Research/PPLH Universitas Hassanudin,
Makassar
13 Indra BLH, Central Sulawesi Province
14 Abdul Muis BLH, Central Sulawesi Province
15 Muhliz BLH, Central Sulawesi Province
16 Prama Wirasena Natural Resources Conservation
Agency/BKSDA, South Sulawesi
17 Veronika Kumurur Engineering Faculty - Universitas Sam
Ratulangi, Manado
18 Fidaan Azuz Bappeda, South Sulawesi Province
19 Asdar Bappeda, South Sulawesi Province
20 M Alwi BLH, West Sulawesi Province
21 Petrus Sumarsono KP3EI Connectivity Working Group
22 Imelda S Y Sinaga KP3EI Connectivity Working Group
Supporting Information
B-9
B.4 Invitation and Agenda
B-10 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
Supporting Information
B-11
B-12 Pre-Scoping Report - Sulawesi Economic Corridor / JVB / 2013-11
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