World Bank Documentdocuments1.worldbank.org/curated/en/845301588692784591/... · 2020. 5. 7. · i...

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GOVERNMENT OF INDONESIA AND THE WORLD BANK PROJECT

FOR STRENGTHENING SOCIAL FORESTRY (SSF) IN INDONESIA

WITH FUNDING FROM GLOBAL ENVIRONMENT FACILITY

Draft

Draft Environment and Social Management Framework

(Draft ESMF)

2019 Pub

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Terms and Abbreviations

AMDAL : Analisis Dampak Lingkungan Hidup

Environmental Impact Analysis

APD : Alat Perlindungan Diri

Personal Protective Equipment (PPE)

BLU Pusat P2H : Badan Layanan Umum Pusat Pembiayaan Pembangunan Hutan

Public Service Department of Forest Development Financing Center

BPDASHL : Balai Pengelolaan Daerah Aliran Sungai dan Hutan Lindung

Center for Watershed and Protected Forest Management

BPHP : Balai Pengelolaan Hutan Produksi

Production Forest Management Center

BPKH : Balai Pemantapan Kawasan Hutan

Forest Area Consolidation Center

BP2SDM : Badan Penyuluhan dan Pengembangan Sumber Daya Manusia

Human Resource Development and Traning Agency

BUPSHA : Bina Usaha Perhutanan Sosial dan Hutan Adat

Social Forestry and Customary Forest Business Development

BPSKL : Balai Perhutanan Sosial dan Kemitraan Lingkungan

Center for Social Forestry and Environmental Partnership

DKN : Dewan Kehutanan Nasional

National Forestry Council

DPRD : Dewan Perwakilan Rakyat Daerah

Local Parliament

EA : Executing Agency

Lembaga Pelaksana

EA : Environmental Assessment

Kajian Lingkungan

ECOPs : Environmental Code of Practices

Tata Cara Pengelolaan Lingkungan

ESCP

ESF

: Environmental and Social Commitment Plan

Rencana Komitmen Lingkungan dan Sosial

: Environmental and Social Framework

Kerangka Lingkungan dan Sosial

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ESMF

ESMP

: Environmental and Social Management Framework

Kerangka Pengelolaan Lingkungan dan Sosial

: Environmental and Social Management Plan

Rencana Pengelolaan Lingkungan dan Sosial

ESS : Environmental and Social Standard

Standar Lingkungan dan Sosial

FI : Financial Intermediaries

Perantara Keuangan

FIP : Forest Investment Program

FPIC : Free Prior Informed Consent

Persetujuan Atas Dasar Informasi di Awal Tanpa Paksaan

FSC : Forest Stewardship Council

GEF : Global Environment Facility

GRK : Gas Rumah Kaca

Greenhouse Gas (GHG)

GRM : Grievance Redress Mechanism

Mekanisme Penanganan Keluhan

HA : Hutan Adat

Customary Forest

HHBK : Hasil Hutan Bukan Kayu

Non-Timber Forest Products (NTFP)

HKm : Hutan Kemasyarakatan

Community Forest

HR : Hutan Rakyat

People’s Forest

HD : Hutan Desa

Village Forest

HL : Hutan Lindung

Protected Forest

HP : Hutan Produksi Tetap

Permanent Production Forest

HPT : Hutan Produksi Terbatas

Limited Production Forest

HTR : Hutan Tanaman Rakyat

Community Plantation Forest

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IPHPS

IUPHKm

: Izin Pemanfaatan Hutan Perhutanan Sosial

Social Forestry License

: Izin Usaha Pemanfaatan Hasil Hutan Kemasyarakatan

License for Utilization of Community Forest Product

JKPP : Jaringan Kerja Pemetaan Partisipatif

Indonesian Participatory Mapping Network

KIP : Keterbukaan Informasi Publik

Public Information Disclosure

KK : Kemitraan Kehutanan

Forestry Partnership

KL : Kemitraan Lingkungan

Environmental Partnership

KLHK : Kementerian Lingkungan Hidup dan Kehutanan

Ministry of Environment and Forestry

KLHS : Kajian Lingkungan Hidup Strategis

Strategic Environmental Assessment

KPA : Kuasa Pengguna Anggaran

Budget User

KPH : Kesatuan Pengelolaan Hutan, sementara khusus wilayah Jawa KPH

adalah Kesatuan Pemangkuan Hutan

Forest Management Unit

KPHP : Kesatuan Pengelolaan Hutan Produksi

Production Forest Management Unit

KPHL : Kesatuan Pengelolaan Hutan Lindung

Protected Forest Management Unit

KSA/KPA : Kawasan Suaka Alam/Kawasan Pelestarian Alam

Nature Reserve/Conservation Area

KSP : Kebijakan Satu Peta

One Map Policy

KTH : Kelompok Tani Hutan

Forest Farmer Group

Kulin KK : Pengakuan dan Perlindungan Kemitraan Kehutanan

Forestry Partnership Acknowledgement and Protection

KUHP : Kitab Undang-undang Hukum Perdata

Civil Code

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KUPS : Kelompok Usaha Perhutanan Sosial

Social Forestry Business Group

LHK : Lingkungan Hidup dan Kehutanan

Environment and Forestry

LSM : Lembaga Swadaya Masyarakat

Non-Governmental Organization (NGO)

MAKL : Masyarakat Adat dan atau Komunitas Lokal

Indigenous Peoples and Local Communities (IPLC)

MHA : Masyarakat Hukum Adat

Indigenous Peoples (IPs)

MVT : Manajemen Vektor Terpadu

Integrated Vector Management

NDC : Nationally Determined Contributions

Kontribusi Nasional yang Ditentukan

NKK : Naskah Kesepakatan Kerjasama

Cooperation Agreement

NSC : National Steering Committee

Komite Pengaran Nasional

OP : Operational Policies

Kebijakan Operasional

PADIATAPA : Persetujuan Atas Dasar Informasi di Awal Tanpa Paksaan

Free Prior Informed Consent (FPIC)

PDTT : Pembangunan Daerah Tertinggal dan Transmigrasi

Development Disadvantaged Regions, Transmigrations

PHT : Pengelolaan Hama Terpadu (PHT)

Integrated Pest Management

PIAPS : Peta Indikatif Areal Perhutanan Sosial

Indicative Maps of Social Forestry (IMSF)

PIU : Project Implementing Unit

Unit Pelaksana Proyek

PKPS : Penyiapan Kawasan Perhutanan Sosial

Preparation of Social Forestry Area

PKTHA : Penanganan Konflik Tenurial dan Hutan Adat

Tenurial Conflict Management and Customary Forest

PMC : Project Management Consultant

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Konsultan Pengelola Proyek

PMO : Project Management Office

Kantor Pengelola Proyek

PMU : Project Management Unit

Unit Pengelola Proyek

POKJA PPS : Kelompok Kerja Percepatan Perhutanan Sosial

Social Forestry Acceleration Working Group

PPK : Pejabat Pembuat Komitmen

Commitment Making Officer

PS : Perhutanan Sosial

Social Forestry

PSKL : Perhutanan Sosial dan Kemitraan Lingkungan

Social Forestry and Environmental Partnership

REDD : Reducing Emissions from Deforestation and Forest Degradation

Pengurangan Emisi dari Deforestasi dan Kerusakan Hutan

RPJMD : Rencana Pembangunan Jangka Menengah Daerah

Local Medium-Term Development Plan

RPJMN : Rencana Pembangunan Jangka Menengah Nasional

National Medium-Term Development Plan

RSPO : Roundtable on Sustainable Palm Oil

SK : Surat Keputusan

Decree

SNTC : Sub-National Technical Committee

Komite Teknis Sub-Nasional

SPPL : Surat Pernyataan Kesanggupan melakukan Pengelolaan dan

Pemantauan Lingkungan

Commitment Letter for Implementation of Environmental Management and Monitoring

SSF : Strengthening of Social Forestry in Indonesia

Penguatan Perhutanan Sosial di Indonesia

TP2PS : Tim Penggerak Percepatan Perhutanan Sosial

Social Forestry Acceleration Driving Team

Tupoksi : Tugas Pokok dan Fungsi

Main Duties and Functions

UKL : Upaya Pengelolaan Lingkungan Hidup

Environmental Management Effort

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UPL : Upaya Pemantauan Lingkungan Hidup

Environmental Monitoring Effort

UU : Undang-undang

Law

WAG : Whats App Group

Grup WhatsApp

WB : The World Bank

Bank Dunia

WHO : The World’s Health Organization

Badan Kesehatan Dunia PBB

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CONTENTS

Terms and Abbreviations ................................................................................................ i

CONTENTS ................................................................................................................ vii

List of Tables ................................................................................................................. x

List of Figures ............................................................................................................... xi

Executive Summary .................................................................................................... xii

1 Introduction ............................................................................................................ 1

1.1 Background ..................................................................................................... 1

1.2 ESMF Aim and Scope ..................................................................................... 2

1.3 ESMF Preparation Methodology .................................................................... 2

1.4 Limitations .......................................................................................................... 5

2 Project Description ................................................................................................. 6

2.1 Project General Objective ............................................................................... 6

2.2 Project Location and Selection Criteria .......................................................... 7

2.3 Environmental and Social Baseline................................................................. 8

2.4 Project Components ........................................................................................ 9

3 Stakeholders and Beneficiaries ............................................................................. 11

3.1 Stakeholder Identification ............................................................................. 11

3.2 Stakeholder Analysis based on Power and Interest in Social Forestry ......... 14

3.3 Project Beneficiaries ..................................................................................... 15

4 Project Related Safeguard Policies ....................................................................... 17

4.1 National Policies ........................................................................................... 17

4.2 The World Bank’s Environmental and Social Framework (ESF)................. 26

4.3 Gap Analysis on National Policy and the World Bank Environmental and

Social Framework .................................................................................................... 30

5 Analysis and Management of Environmental and Social Impacts ......................... 1

5.1 Summary of Environmental and Social Risks and Impacts ........................ 1

5.2 Specific Project Activities, Impacts and Environmental and Social

Instruments ................................................................................................................. 1

5.3 Impact Prevention and Mitigation Approach ................................................ 12

5.4 Negative List ................................................................................................. 13

5.5 Framework of Sub-Project Typologies ......................................................... 15

5.6 Environmental and Social Management Plan (ESMP) ................................. 21

5.7 Environmental Code of Practice (ECOPs) .................................................... 22

5.8 Stakeholder Engagement Plan ....................................................................... 22

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5.10 Public Participation in the Project ............................................................. 23

5.11 Information Disclosure .............................................................................. 25

6 ESMF Implementation ......................................................................................... 26

6.1 Implementation Phases .................................................................................. 26

6.2 Institutional Arrangements ........................................................................... 28

6.3 Capacity Building .......................................................................................... 30

6.4 Safeguard Staffing ......................................................................................... 31

6.5 Evaluation...................................................................................................... 31

6.6 Funding for ESMF-related activities ............................................................. 32

7 Grievance Redress Mechanism ............................................................................ 33

7.1 Site Level Grievance Redress Mechanism .................................................... 34

7.2 National Level Grievance Redress Mechanism ............................................ 35

Annexes

Annex 1 Strengthening of Social Forestry (SSF) in Indonesia – Summary Annex 2 Selected SSF Project Areas – Key Features Annex 3 Negative List Screening Annex 4 Environmental and Social Impact Screening and Preparation of the

Environmental and Social Management Plans (ESMPs) Annex 5 Environmental Code of Practices (ECOPs) and WBG General EHS and

Industry Sector Guidelines Annex 6 Guidance Notes on Integrated Pest Management (IPM) Annex 7 Chance Finds Procedure for Physical Cultural Resources Annex 8 Community Participation Framework (CPF) Annex 9 Summary Guidelines for Gender Mainstreaming in Social Forestry Annex 10 Guidelines on Free, Prior and Informed Consent (FPIC) Annex 11 Environmental Permit, Management, and Monitoring Measures

(including TORs) Annex 12 Examples of Social Forestry Schemes Cooperation Agreements between

FMU and Community/Farmer Groups Annex 13 MOEF Mechanism for Handling Tenurial Conflict Annex 14 Grievance Redress Mechanism Forms (Sample) Annex 15 Land Acquisition and Resettlement Policy Framework/ Process

Framework (LARPF/PF) Annex 16 Indigenous People Planning Framework (IPPF) Annex 17 Stakeholder Engagement Plan (SEP) Annex 18 Environmental Management Procedures for Construction Activity and

WBG General EHS and Infrastructure Sector Guidelines Annex 19 Public Consultation Record – Summary Annex 20 General Guideline for High Conservation Value (HCV) Annex 21 Environmental, Social and Safety Reporting Tool

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List of Tables

Table 1 Stakeholder Groups Met in ESMF Preparation

Table 2 Direct Beneficiaries

Table 3 National Policies that serve as SSF Project Safeguards

Table 4 The World Bank's Environmental and Social Standards

Table 5 Gap Analysis of National Policies and the World Bank's Environmental and Social Framework

Table 6 Potential Environmental and Social Impacts of SSF Project Activities and Mitigation

Table 7 Example of Environmental and Social Management Plan

Table 8 Responsibility of Each Party in Environmental and Social Management

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List of Figures

Figure 1 ESMF Preparation Process in the SSF Project

Figure 2 SSF Project Location

Figure 3 Stakeholders based on Power and Interest in Social Forestry

Figure 4 Impact Management Flow Chart

Figure 5 SSF Project Grievance Redress Mechanism

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Executive Summary

Project Description

Social forestry is the embodiment of Nawacita, President Jusuf Kalla's political promise, which contains 9 (nine) priority agendas for the 2014-2019 period. It is currently set by the government as a program to overcome poverty and national land tenure disparities. The Social Forestry Program is also considered a strategic approach to addressing the causes of forest degradation and deforestation. Therefore, in the 2015-2019 National Medium-Term Development Plan (NMTDP) which refers to Nawacita, the Government of Indonesia (GOI) committed to allocating at least 12,7 million hectares of forest estate or 10% of the state forest, to increase the size of community management areas within the state forest through schemes such as Community Forest (CF), Village Forest (VF), Community Plantation Forest (CPF), Customary Forest (CF), Community Forest on Private Owned Land (People’s Forest - PF), and Forestry Partnership (FP).

To support the above initiative of the Government of Indonesia (GOI), the Global Environment Facility (GEF) and The World Bank will provide support for a 5 (five) year Strengthening Social Forestry (SSF) project in Indonesia. This project aims to enhance the community's access to manage forests in selected priority areas. To this end, 3 (three) major components of the project were established, namely: 1). Policy and institutional strengthening to support Social Forestry; 2). Social Forestry development and strengthening; and 3). Project management and monitoring and evaluation.

The Social Forestry Program provides an opportunity for the GOI to engage communities and smallholder farmers in its agrarian reform program and in biodiversity conservation efforts. By providing use rights to severely degraded forest land to communities, the Program helps reduce the drivers of biodiversity loss by: (i) supporting sustainable community-based forest management to increase forest cover, which in turn provides biodiversity dispersal or corridor benefits; and (ii) promoting forest-based micro and small enterprise development to improve livelihoods of forest dependent communities, thereby reducing conversion pressure on intact forest habitats. Examples of micro and small enterprise development support for social forestry enterprise groups with permits in forest areas include: plantation and processing of timber and NTFP, eco-tourism, including necessary extension and technical assistance for market analysis, quality control, packaging etc, as relevant and on a site-by-site basis. The project will identify the potential micro and small enterprise development in the selected regencies and likely to support some feasibility studies, however only few physical investments will be carried out by this project. The GEF-supported SSF project targets a location of 300,000 ha scattered across various regions in Indonesia. The project will be implemented within forest estate areas that have been through a regulated1 screening process to deterimine their eligibility as social forestry areas, in areas under known Forest Management Unit (FMU or KPH) jurisdicational responsibility. After going through a discussion and consultation process based on GoI considerations for accelerating achievement of social forestry policy objective and targets, as well as on criteria to meet GEF biodiversity requirements and WB Environmental and Social Standars, it was decided that the SSF project will be implemented in South Lampung District, Lampung Province; Lima Puluh Kota District, West Sumatera Province; Bima District and City,

1 Social Forestry and Environmental Partnership Directorate General Regulation P12/PSKL/SET/PSL.0/11/2016 regarding Guideline for Verification of Permit Applications for Social Forestry Businesses (IUPHKm).

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West Nusa Tenggara Province; Dompu District, West Nusa Tenggara Province; and West Halmahera District, North Maluku Province.

The project beneficiaries in the proposed locations consist of direct beneficiaries and indirect beneficiaries. Total indirect beneficiaries are estimated at 60,000 people, while direct beneficiaries are estimated at around 133,688 people.

The SSF project involves cross-cutting agencies in the National Steering Committee (NSC) namely: Ministry of Environment and Forestry (MoEF), National Development Planning Agency (Bappenas), Ministry of Home Affairs (MoHA), Ministry of Village, Development of Disadvantaged Regions and Transmigration (MoV), Coordinating Ministry for Economic Affairs (CMEA), Ministry of Agriculture (MoA), Ministry of Finance (MoF), Ministry of State Owned Enterprises (MoSOE), Ministry of Cooperatives (MoC), Micro, Small and Medium Enterprises (MSME), Ministry of Trade (MoT), Creative Economy Agency (BEKRAF), Ministry of Agrarian Affairs and Spatial Planning (MoAASP), Ministry of Tourism, and Social Forestry Acceleration Team (locally TP2PS). The MoEF’s Directorate of Social Forestry Area Preparation serves as Project Management Unit (PMU) or Executing Agency (EA). At the local level, Forest Management Units (FMU) serve as a Project Implementation Unit (PIU) of the SSF Project in each region.

ESMF Concept

This Environmental and Social Management Framework (ESMF) document, with reference to the Social Forestry Assessment, is a living document to ensure that the preparation and implementation of SSF project activities do not cause, or can minimize, adverse environmental and social impacts. It has been prepared with reference to the World Bank Environmental and Social Framework, and existing operational policies and guidelines.

The ESMF document provides project management staff, consultants and other relevant parties involved in the SSF Project with references and guidance on a set of principles, rules, procedures and institutional arrangement to screen, assess, manage and monitor mitigation measures for potential environmental and social impacts of project activities including policy development and field activities, and including for handling grievances related to the project. The ESMF also discusses potential environmental and social impacts caused by SSF Project activities and provides recommendations with respect to mitigation measures expected to be carried out by the project. Annexes to the ESMF provide more detailed resources for use during project implementation, including a negative list for sub-project activities that are yet to be determined, guidance for developing environmental and social impact management and mitigation plans (ESMP), consultation guidance, including for indigenous peoples and Free, Prior and Informed Consent (FPIC) processes.

Impact Analysis and Mitigation Strategy

The SSF project aims to increase the community's access and management rights to forest land in selected priority areas. Therefore, the overall project is designed to have a positive impact. However, there are still potential negative environmental and social impacts of the project activities that require mitigation efforts, as summarized below and elaborated in this document.

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Potential Positive Impacts

ESS1 • Screening, scoping and assessment processes are applied for subprojects leading to proper management and mitigation of risks and impacts

ESS2 • Increased awareness about labor and working conditions

ESS3 • Reduced risk of erosion/land slides and increased awareness of pollution prevention

• Increased incentives for forest protection, reduced encroachment, and land use conversion

ESS4 • Increased awareness about community health and safety

• Reduced dependency on inorganic fertilizer and pesticide use

• Better understanding of ecosystem services and their economic value, resunting in more ustainable ecosystem use and protection

ESS5 • Increased legal certainty leading to improved forest protection

ESS6 • Positive effects for biodiversity if the Indicative Map of Social Forestry Area (PIAPS) is compatible with sustainable land use that properly protects critical natural habitats, their connectivity, and buffer zones.

ESS7 • Improvement of socio-economic circumstances and livelihoods of adat communities

• Increased security of land/forest use rights

ESS8 • Increased visibility and funds for maintenance of cultural heritage sites

ESS10 • Strengthened community organizations, farmer management units and social forestry working group (pokja)

• Improved socio-economic circumstances and livelihoods

Potential Negative Impacts (resulting from poor ES risk management)

ESS1 • Unfair sharing of benefits may occur.

ESS2 • Poor OHS practices may lead to injuries

ESS3 • Increased soil and water degradation if environmental issues are not adequately considered in (agro-)forestry production

• Roads, buildings and other infrastructure may increase soil erosion

ESS4 • Health and safety risks due to noise disturbance, water pollution, and exposure to fertilizer, pesticides or waste during construction and operation.

ESS5 • If not adequately planned, access restrictions may damage livelihoods

• Permanent and/or temporary losses of small areas of land

ESS6 • Environmental degradation if activities are not properly planned

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• Encroachment on land with natural vegetation by e.g. forest management activities

• If not properly planned, loss of biodiversity and habitat fragmentation from infrastructure development

ESS7 • Potentially limited capacities of adat communities to benefit from project benefits

ESS8 • Though no Physical Cultural Resources (PCRs) are expected to be impacted, remaining impacts on local sites are possible if not properly planned

ESS10 • Access to project information and resulting opportunities may be dominated by elite stakeholders

• Unfair sharing of benefits may occur

As a first step in the ES due diligence proves of the project, all proposed sub-projects are to

be screened out against a ‘negative list’ of excluded actitivites that are impacts expected to

carry risks of a nature, magnitude or type which may result in unacceptably high residual

impacts. After this initial screening out process, sub-projects are considered by typology and

for eligble sub-projects, site specific baseline data and impact assessments will be prepared,

with consultations to develop management and mitigation plans in line with World Bank ESS

(environmental and soial standards) and good international industry practice. Each sub-

project should have ES instruments (e.g. ECOP, ESMP, permit such as UKL-UPL), as appropriate

and commensurate with the types of activity, investment, or enterprise to be supported and

with the ES risks in terms of potential impacts and the probability of their occurance. The aim

is to identify and prepare a proportionate ES instruments for every sub-project .

An Indigenous Peoples Planning Framework (IPPF) has been prepared along with this ESMF,

and an Indigenous Peoples Plan (IPP) is to be prepared for each site where indigenous peoples

are involved in or impacted by project activities. The framework includes identification of

indigenous groups at each site, including Pepaduan, Saibatin, Moang, Dou, Mbojo, Sahu,

Ternate, Wayoli, Loloda and Gamkonora peoples. The IPPs will assess in detail the local

baseline including indigenous institutions, conflict history, factors relevant for meaningful

engagement, and documentation of how the indigenous People are involved since the

planning (refer to ESMF annexes 8 on Community Participation, 10 on FPIC, 17 on Stakeholder

Engagement including grievance handling). The plans will include assessment of impacts,

results of consultations to agree on mitigation plans which may include allocation of roles,

benefit sharing etc. The IPP activity commitments are to be consistent with the site or sub-

project ESMP, and include information on resources and responsibilities for implementation,

monitoring and evaluation. The plans are also to include information on enhancing the

indigenous people's capacity to participate in and benefit from SSF project activities.

A Resettlement Policy Framework/Process Framework (RPF/PF) has been prepared as a

combined documented, to be used as guideline to plan, execute, monitor, and evaluate the

activities in SSF Project related to impacts on use and access to land in the social forest areas,

which may include areas outside forest boundaries. This framework is prepared as a

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precautionary measure and includes principles and procedures to adopt if any activity

requires land acquisition, physical resettlement, economic displacement or restrictions to

access natural resources that are used to support community livelihoods or other social-

cultural functions. The ESMF also outlines the current government specified mapping and

verification processes, along with village boundary demarcation and conflict resolution, which

the project implementation will follow as well as strengthen both in terms of content (under

Component 1) and their use, through providing information and capacity building to the SF

Working Group, FMUs and communities involved in the SSF project.

Institutional Arrangements

The elements of the project organization consist of the following:

1. National Steering Committee (NSC) is led by the Directorate General of Social

Forestry and Environmental Partnership (PSKL).The NSC members are the echelon 2 officials in charge of the Forests and Social Forestry i.e. Ministry of Environment and Forestry (MoEF), National Development Planning Agency (Bappenas), Ministry of Home Affairs (MoHA), Ministry of Village, Development of Disadvantaged Regions and Transmigration (MoV), Coordinating Ministry for Economic Affairs (CMEA), Ministry of Agriculture (MoA), Ministry of Finance (MoF), Ministry of State Owned Enterprises (MoSOE), Ministry of Cooperatives (MoC), Micro, Small and Medium Enterprises (MSME), Ministry of Trade (MoT), Creative Economy Agency (BEKRAF), Ministry of Agrarian Affairs and Spatial Planning (MoAASP), Ministry of Tourism, 2 (two) members of Social Forestry Acceleration Team (locally TP2PS);

2. Project Management Unit (PMU) or Executing Agency (EA) is led by the Director of

Area Preparation for Social Forestry – MoEF, as Budget User for SSF Project;

3. Project Implementation Unit (PIU) is the Forest Management Unit (FMU) as

Commitment Making Officer to SSF Project;

4. Project Management Office (PMO) is a professional administrative consultancy.

5. Provincial Environment and Forestry Agency, pursuant to the mandate of Law No. 23 0f 2014 concerning Decentralization.

6. Working Group on Social Forestry Acceleration (WG-SF).

7. Project Management Consultant to SSF Project (PMC) is a professional institution (registered firm) contracted by PMU to provide services or technical expertise to PMU and PIU. PMC itself will include several consultants according to their field of expertise with the possibility of some consultants also being directly employed by the Project/Ministry.

Capacity Building and Funding

EA/PMU shall be responsible for ensuring that the capacity of all parties, especially implementers in the field, is adequate to implement the ESMF’s minimum requirements. The need for capacity building including the budget related to the ESMF implementation will be provided through various means such as technical meetings, work meetings, coaching clinics,

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training, and technical assistance. Capacity building will be directed at staff appointed by PMU, PIU, Facilitators and community representatives (Forest Farmer Group-FFG/Social Forestry Business Group-SFBG). During the project implementation, refreshment and mentoring activities assisted by safeguard specialists will also be conducted regularly.

Funding for the ESMF implementation shall be covered by the SSF project under the responsibility of PMU.

Grievance Redress Mechanism (GRM)

The purpose of the grievance redress mechanism is to ensure all grievances, complaints or conflicts, whether from individuals or groups involved or affected by the project, are well addressed. The grievance redress mechanism of the project is carried out in stages, where site-level grievances will be addressed with the site-level grievance redress mechanism, but if it cannot be resolved then the national-level grievance redress mechanism shall be employed. The Directorate of Area Preparation for Social Forestry - MoEF is the agency that handles grievances at the national level, while FMU is the institution that deals with grievances at the site level.

The mapping of stakeholders, and identification of means for communication, to effectively inform and involve them (by category of activity), along with a plan for consultation and disclosure, and a project Grievance Mechanism (GM), has been documented in a Stakeholder Engagement Plan (SEP), prepared for the Project in parallel with the ESMF. Reporting to stakeholders will be proposed through various mechanisms including newsletters, MoEF website or periodic meetings, to be confirmed with stakeholder input during initial consultations.

The main groups targeted as beneficiaries of this project are: 1) local communities, as affected people, comprising forest dwellers and users, indigenous peoples, and those organized as forest user groups (social forestry business groups or KUPS) under the Social Forestry law, which may be arranged as farmer groups, cooperatives or other small enterprise entities; 2) facilitators of social forestry programs, working for Forest Management Units (KPH); and 3) the Forest Management Units (KPH) as a part of Ministry of Environment and Forestry, responsible for administering and managing local forest areas. Other beneficiaries include the Directorate General of Social Forestry and Environmental Partnership (DGSF/PSKL), Directorate of Environmental Partnership, Directorate of Customary Forest and Tenurial Conflict (PKTHA), Provincial Government Working Groups on Social Forestry and Kabupaten/Regency Working Groups.

To address complaints or grievances specifically pertaining to the implementation of the project, a mechanism has been established within the implementing arrangements (structure), with dedicated personnel to coordinate receipt, logging, and responses to aggrieved parties, including for reporting of grievances to the World Bank on a six- monthly basis. Analysis of grievances will be undertaken to provide responses in a time-bound manner or institutionalize changes on the part of the Ministry of Environment and Forestry (MoEF), or local implementation partners. The project has allocated resources for a grievance redress mechanism and has also provided support in developing skills and strengthening capacity at all levels in particular via the Social Forestry Task Force and Directorate of Customary Forest and Tenurial Conflict (PKTHA), Provincial Government Working Groups on Social Forestry and Kabupaten/Regency Working Group. These units currently operate at the national level and in some regions there is limited or no associated institutional system. Project activities to

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strengthen complaints handling and resolution of conflicts related to forest classification and uses are built in to Component 1. Through Component 1 activities, capacity for stakeholder engagement as well as grievance handling will be strengthened, whilst through Component 2, direct interaction with project stakeholders through community and village level activities will be guided by the SEP and GM, with particular effort through the FMUs in each project location.

The SSF project will support the implementation of the project-related complaints handling (including capacity building of all parties and its funding). In addition, the project will also support the optimization of institutions engaging in the management of forest tenurial conflicts, especially conflicts related to social forestry included in the mandate of the Directorate of Tenurial and Indigenous Forest Conflict – MoEF to meet the 6 (six) important characteristics: legitimate, accessible, predictable, equitable, rights-compatible and transparent; and 3 (three) sufficient requirements for processes i.e. authority, personal skills, and independence.

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1 Introduction

1.1 Background Social forestry iss the embodiment of Nawacita, Jokowi-Jusuf Kalla's political promise

which contains 9 (nine) priority agendas for the 2014-2019 period. It is currently set by the government as a program to overcome poverty and national land tenure disparities. The Social Forestry Program is also considered a strategic approach to addressing the causes of forest degradation and deforestation (stated by Ms. Siti Nurbaya, Minister of Environment and Forestry at the opening of Indonesian Forest and Deforestation Workshop, January 29th, 2018).

In the 2015-2019 National Medium-Term Development Plan (NMTDP) which refers to Nawacita, the Government of Indonesia (GOI) committed to allocating at least 12,7 million hectares of forest estate or 10% of the state forest, to increase the size of community management areas within the state forest through schemes such as: Community Forest (CF), Village Forest (VF), Community Plantation Forest (CPF), Customary Forest (CF), Community Forest on Private Owned Land (People’s Forest - PF), and Forestry Partnership (FP).

To support the above initiative of the Government of Indonesia (GOI), the Global Environment Facility (GEF) and The World Bank will provide support for a 5 (five) year Strengthening Social Forestry (SSF) project in Indonesia. This project aims to enhance the community's access to management forest in selected priority areas. To this end, 3 (three) major components of the project have been established: namely 1). Policy and institutional strengthening to support Social Forestry; 2). Social Forestry development and strengthening; and 3). Project management and monitoring and evaluation.

The Social Forestry Program provides an opportunity for the GOI to engage communities and smallholder farmers in its agrarian reform program and in biodiversity conservation efforts. By providing use rights to severely degraded forest land to communities, the Program helps reduce the drivers of biodiversity loss by: (i) supporting sustainable community-based forest management to increase forest cover, which in turn provides biodiversity dispersal or corridor benefits; and (ii) promoting forest-based micro and small enterprise development to improve livelihoods of forest dependent communities, thereby reducing conversion pressure on intact forest habitats. The project does not involve mapping of village boundaries, but supports demarcating forest areas and for the establishment of village associations are for social forestry enterprise/livelihood purposes. It also includes strengthening collaboration and coordination between MOEF and ATR/BPN who are responsible for One Map. Examples of micro and small enterprise development support for social forestry enterprise groups with permits in forest areas include: plantation and processing of timber and NTFP, eco-tourism, including necessary extension and technical assistance for market analysis, quality control, packaging etc, as relevant and on a site-by-site basis. The project will identify the potential micro and small enterprise development in the selected regencies and likely to support some feasibility studies, however only few physical investments will be carried out by this project.

The SSF project is designed to have no significant environmental and social impacts but still requires a safeguard process in accordance with the World Bank's Environmental and Social Framework, and the laws and regulations of the Republic of Indonesia, to safeguard against minor impacts that may be anticipated as well as to prepare for unexpected impacts that may arise as a result of project activities. This requirement is stipulated in Aide Memoires between the Government of Indonesia and The World Bank. Proposed project risk

2

categorization based on Environmental and Social Standard - ESS1 shall be determined at the time of the appraisal stage in the World Bank’s project approvals process.

To meet the requirements of the project management framework, the Consultant Team working for the Directorate General of Social Forestry and Environmental Partnerships (PSKL) - MoEF prepared the Environmental and Social Management Framework (ESMF) document to guide SSF Project implementers in identifying, screening, and assessing location-specific environmental and social issues potentially caused by the project. The ESMF also describes management and mitigation measures that shall be implemented by project implementers, as well as a management plan that must be prepared by project implementers prior to the project implementation (as explained in Section 5.1 Preliminary Analysis of Environmental and Social Impacts, herein). It is expected that the ESMF can thoroughly and strictly be implemented, regardless of project funding source.

Since the ESMF document will be a key reference to meet the environmental and social management framework requirements by the SSF Project, it is drawn up in a simple, clear, concise and succinct manner so that it can be more easily understood by its users in the future. It has been prepared with reference to the World Bank Environmental and Social Framework, and Environmental and Social Standards. Annexes to the ESMF are an important resource to be considered as part of this document.

1.2 ESMF Aim and Scope All projects have the potential to cause adverse environmental and social impacts;

knowing this, it is therefore essential to put in place a process to minimize them.

For this reason, the ESMF is drafted as a living document outlining the principles and guidelines to be followed to ensure that the preparation and implementation of SSF project activities do not cause, or can minimize, adverse environmental and social impacts. It is necessary to identify potential environmental and social impacts and design required mitigation measures by following relevant national environmental and social policies and the World Bank's environmental and social safeguard policies (mandatory for the World Bank borrowers or grant beneficiaries). The ESMF provides guidance on screening a range of sub-project typologies for eligibility under the SSF, describing the potential environmental and social risks associated with the typology and its baseline conditions, and assigning environmental and social instruments to mitigate the potential risks.

The ESMF also identifies the responsibilities of project stakeholders, outlines the personnel needs to carry out environmental and social management in the SSF project, explains the capacity building plans to implement the management framework, expresses guarantee of information disclosure, and designs evaluation and grievance redress mechanism. In other words, the ESMF provides a framework, which functions as an environmental and social protection instrument, for the related government institutions, in this instance, the Directorate General of Social Forestry and Environmental Partnership – MoEF,

1.3 ESMF Preparation Methodology The ESMF preparation process began with the preparation of the Inception Report

containing the contents of the ESMF. It was then followed by a Social Forestry Assessment which became the main reference for the preparation of the ESMF. This assessment report contains the profile of the SSF project locations, stakeholder mapping, the current situation of social forestry, and recommendations related to policies, institutions, and capacity building. Considering all the limitations, most of the material used is derived from literature studies as

3

there are many existing papers, articles, books related to social forestry. Most of the literature was prepared by the parties who have been directly involved in the process of implementing social forestry in recent years.

To complement the preliminary information, a Focus Group Discussion (FGD) was held on November 8th, 2018 involving stakeholders who have social forestry related initiatives at the national level, such as the Kemitraan, SETAPAK - The Asia Foundation, LESTARI - USAID, Hatfield Indonesia, RECOFT, MFP 4/KEHATI and others. The FGD was intended to obtain preliminary data regarding challenges or problems in implementing social forestry. In addition, ESMF Specialists were also involved in social forestry related meetings organized by the Directorate of Social Forestry Area Preparation (PKPS), for instance, the Community Forest Evaluation held in Yogyakarta Special Region on 22-23 November 2018. The meeting was attended by the village people who hold Community Forest concessions and are parties to social forestry implementation in Indonesia since 1995. Various inputs regarding the problems occurring during the implementation of the Community Forest scheme were obtained in the said meeting. In addition, a field visit was carried out to one SSF project location i.e. Tuban District, East Java Province to meet with various stakeholders in social forestry. For data deepening, an FGD was also held on January 7th-8th, 2019 in Yogyakarta involving stakeholder representatives such as Provincial Forestry Agency, District Government, Forest Area Consolidation Center (FACC), Forest Management Unit (FMU), Social Forestry Business Group (SFBG), and Facilitator-selected SFF project locations namely West Halmahera, Bima, Dompu and Tuban. In this meeting, inputs were received regarding the potential environmental and social impacts that are relevant to the context of each location.

The initial draft ESMF was prepared based upon data and information collection. The said document was presented to limited participants in a meeting on January 25th, 2019 at Manggala Wanabhakti, Jakata, which was attended by the Directorate General of Social Forestry and Environmental Partnership – MoEF and the World Bank. Upon obtaining inputs for this Draft ESMF from various parties, the document was then refined into Draft 1 of the ESMF.

The draft document was publically disclosed to enable inputs by posting it on the MoEF official website (http://www.menlhk.go.id/site/single_post/1858) on February 8th, 2019. In addition, the disclosure regarding the publication of this document was sent through the Social Forestry related WhatsApp Groups (WAG) such as the National Social Forestry WAG and others. The Draft 1 ESMF was then discussed in a pre-appraisal process by involving the Directorate General of Social Forestry and Environmental Partnership – MoEF and the World Bank on February 11th-13th, 2019 at Manggala Wanabhakti, where more inputs were obtained for its improvement.

The improved Draft 1 ESMF was then presented at a public consultation held on February 18, 2019, at the Menara Peninsula Hotel, Jakarta, involving various stakeholders. Inputs obtained from various stakeholders were used to refine the Draft 1 ESMF into a final document (see Annex 19 on summary of the Public Consultation). Further information on FGDs and Public Consultations involving stakeholders is presented in the following table.

Table 1

http://www.menlhk.go.id/site/single_post/1858

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Stakeholder Groups met in ESMF Preparation

Activity Time Venue Participant

FGD I November 18th, 2019

Jakarta The parties having social forestry related initiatives at the national level such as the Kemitraan, SETAPAK - The Asia Foundation, LESTARI - USAID, Hatfield Indonesia, RECOFT, MFP 4/KEHATI, etc.

FGD II January

7th-8th, 2019

Yogyakarta Stakeholder representatives (Provincial Forestry Agency, District Government, Forest Area Consolidation Center (FACC), Forest Management Unit (FMU), Social Forestry Business Group (SFBG), Facilitator) from several selected locations namely West Halmahera, Bima, Dompu, and Tuban.

Disclosure February

8th, 2019

MoEF website,

SF WAG, etc.

Public Consultation

February

18th, 2019

Jakarta Relevant Ministries (Ministry of Finance; Ministry of Village, Development of Disadvantaged Regions, and Transmigration; Ministry of Foreign Affairs, Ministry of Home Affairs), MoEF, Perum Perhutani (Forestry SOE), Universities, Education and Training Institutions, NGOs (AMAN, KPA, SPI, BRWA, etc.), Partners (SF Acceleration Team), Local Governments, and FMUs at the SSF project location.

The process of preparing ESMF within the framework of the SSF Project can be described by the following diagram:

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1.4 Limitations The preparation of the ESMF document was performed with several limitations such

as a limited timeframe which precluded the possibility ofr field level engagement at each site. Other limitations include administrative issues, in which delayed support for project preparation and administration did not allow for field visits to all the project locations.

To address these limitations, most of the material used derives from literature studies as there are many existing papers, articles and books related to social forestry. Most of the literature was prepared by the parties who have been directly involved in the process of implementing social forestry in recent years. In addition, an FGD was also held and attended by stakeholder representatives from selected project locations, and community including indigenous peoples’ organization representatives, as well as personnel from each site FMU were involved in national level consultations. These measures helped to overcome the limitations in preparing the ESMF. The ESMF document is designed as a ‘living document’ and subject to update at any time.

Figure 1 ESMF Preparation Process in the SSF Project

Social Forestry Assessment

Preparation of Draft 0 ESMF

Presentation of Draft 0 ESMF

January 25th, 2019

Disclosure February 8th, 2019

FGD with Stakeholders in Selected SSF Project

Locations (West Halmahera, Bima,

Dompu and Tuban) January 7th-8th, 2018

Literature Study

Pre-Appraisal ESMF February 11th-13th,

2019

Preparation of Draft 1 ESMF

Preparation of Inception Report

Field Visit

FGD with Stakeholders at the

National Level November 8th, 2018

Public Consultation February 18th, 2019

Finalization of ESMF

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This ESMF is also based on a range of clearly defined sub-project typologies (refer 5.5 Impact Prevention and Mitigation Approach and Table 8). While their exact lcations and the details of prevailing ES baseline conditions may yet be unknown, the types of activities and resulting risks and impacts are quite well understood across the spectrum of typologies and have allowed this ESMF to be prepared with a reasonable level of confidence.

2 Project Description

2.1 Project General Objective Since 2007, the Government of Indonesia has issued policies and regulations to

increase the community's access rights to forest areas. Once fully implemented, the Social Forestry program is expected to generate at least a 9.2% reduction in GHG emissions at the national level. To date, forest concession covering 779,454.46 ha has been granted to the community. Based on the initial assessment, the overall targets set by the MoEF are unattainable due to a number of challenges including identification and conversion of suitable degraded land, weak capacity at the community level to improve access to information, markets, decision-making, and technical assistance, and limited institutional capacity and incentives at the central and local government level.

At the institutional level, the MoEF has systems and infrastructure dedicated to SF but lacks resources to scale up and accelerate this priority program. Gaps and needs include: compiling information and creating an inventory of land claims inside forest areas, particularly in the biodiverse locations, as part of strengthening the MoEF’s Indicative Map of Social Forestry Area (Peta Indikatif dan Area Perhutanan Sosial, PIAPS) validation processes and the Social Forestry Navigating System ; establishment of village institutions (lembaga desa) and farmers groups, which are critical elements in the GOI’s various social forestry schemes; clarity in aspects of the institutional framework, both in terms of institutional arrangements and implementation capacity, to expedite the issuance of the appropriate land tenure and use rights to village associations, farmers groups, and communities; capacity to review, recommend, and approve the management plans and then supervise (and, if necessary, control), the plan implementation; and availability of technical assistance support system to forest-dependent communities to promote livelihood options that protect forest sustainability.

The GEF funding for the proposed SSF Project is expected to enhance basic information for improved decision-making, better methodologies to facilitate the conversion of suitable degraded land, and capacity building of local governments and communities to execute the conversion. In addition, it will provide technical assistance for forest management and related livelihoods, to promote poverty reduction and biodiversity conservation. Besides, the addition of funds from GEF will catalyze and help increase the capacity and implementation of the Social Forestry Program including ensuring that marginalized community members e.g. women and/or women as the family head can receive benefits, not only access to land use rights but also livelihood and business development activities that are in line with conservation goals. Thus, the project will contribute to the government's commitment to international conventions such as climate change (e.g. National Determined Contributions/NDC) and biodiversity, as well as realising the government’s development policies and programs.

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2.2 Project Location and Selection Criteria The GEF-supported SSF project targets a location of 300,000 ha scattered across

various regions in Indonesia. The project will be implemented within forest estate areas that have been through a regulated2 screening process to deterimine their eligibility as social forestry areas, in areas under known Forest Management Unit (FMU or KPH) jurisdicational responsibility. A number of criteria for project location selection have been set since the beginning, which comprise:

a. Global biodiversity value

b. Local government commitment

c. The existence of a Working Group on Social Forestry (WG-SF)

d. The existence of local partners (i.e. FMU, Field Facilitator)

e. Diverse land types and social forestry schemes

f. Opportunities for developing both the existing and potential micro and small enterprises

g. Potential areas included in the Indicative Map of Social Forestry Areas (IMSFA or ‘PIAPS’) and contribution to Greenhouse Gas (GHG) emission reduction

The selection of project locations was done by conducting general screening against the above criteria, as well as reference to the WB ESF, and Environmental and Social Standards. The criteria consider above also ensured that general data was available in the locations, so that eligibility could be substantiated. Importantly, the use of the PIAPS (indicative map and social forestry areas) as the preliminary reference ensured that the areas are already screened, as PIAPS determination involves both administrative and technical verification processes), including:

• Overlaying of government maps of forest areas, concession /permit areas, administrative boundaries, other permit types, rivers and roads, as well as topography and dominant species cover (Reg.12/2016, article 12 (5)). This screening process ensures there are no national parks or conservation areas in the PIAPS areas;

• Interviews and discussion with village heads, community group members, applicants (whether community group, forest farmer group or cooperative), and sub-district head (camat), to determine and verify the application details, level of community livelihood dependency on proposed forest area, commodity and uses proposed (Reg. 12/2016, article 13 (1,2)).

After going through a discussion and consultation process, the following districts were selected as the SSF project locations, from which specific locations within the defined FMU areas will be identified during implementation:

1. South Lampung District, Lampung Province

2. Lima Puluh Kota District, West Sumatera Province

3. Tuban District, East Java Province

4. Bima District, West Nusa Tenggara Province

2 Directorate General Social Forestry and Environmental Partnership Regulation P12/PSKL/SET/PSL.0/11/2016 regarding Guideline for Verification of Permit Applications for Social Forestry Businesses (IUPHKm).

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5. Dompu District, West Nusa Tenggara Province

6. West Halmahera District, North Maluku Province

This upstream assessment of the compatibility of land uses based on the PIAPS determination process outlined above has informed the overall SSF project site selection and development of the project-tailored ‘negative list’ in this ESMF however for sub-project locations and activities, further assessment will be conducted during implementation stage, and documented in the ESMPs.

Figure 2

SSF Project Location

2.3 Environmental and Social Baseline A general environmental and social baseline was obtained from the Social Forestry

Assessment study conducted to support the prediction of environmental, social and cultural impacts of the project activities. The baseline consists of basic environmental, socio-cultural, institutional, historical and political data from each selected SSF project location. In addition, there is information about stakeholders in social forestry, policies directly related to social forestry, lessons learned from social forestry activities that have taken place by far, identification of several challenges in the implementation of social forestry, and recommendations formulated to accelerate and strengthen social forestry.

The complete environmental and social baseline of the project locations (indicative) can be found in Annex 2 Selected SSF Project Areas – Key Features and Table 8. Site specific baseline data and impact assessments are to be developed when sites and specific activities (sub-projects) are defined based on consultation during project implementation. The social and environmental profiles of the sites for Component 2 activities will include identification of existing habitat, land/forest or other resource uses and users in and around the proposed

9

SF sites, existing conflicts, vulnerabilities, condition of existing infrastructure and nearby or related activities that may be affected.

2.4 Project Components To achieve the project objectives, project components are established and consistent

with Indonesia's Sustainable Landscape Program and One Map Policy. The project components consist of the following:

Component 1. Policy and Institutional Strengthening to Support Social Forestry

This component aims to create an enabling environment for the success of the development and strengthening of social forestry in Indonesia, and to create opportunities for increasing the scale of activities in the future. There are 3 (three) sub-components under Component 1.

Sub-component 1.1 Policies and Regulations

This sub-component aims to support the MoEF Social Forestry Program in developing and harmonizing relevant policies, regulations and procedures which accelerate and facilitate the implementation of the Social Forestry Program. Its main activities include:

(i) Supporting village and district development planning process and relevant policies and guidelines;

(ii) Strengthening the policy framework for sustainable funding (e.g. fiscal decentralization, microfinance); and

(iii) Strengthening policy framework for community-based enterprises.

Sub-component 1.2 Institutional Strengthening

This sub-component aims to develop institutional capacities at various levels of government that are appropriate for promoting Social Forestry Program activities consistent with the proposed project objectives. This will enable sustainable management of forest resources by users while providing income-generating opportunities. Its main activities include:

(i) Additional support for the operationalization of the Social Forestry Task Force;

(ii) Additional support for grievance redress and conflict resolution mechanisms;

(iii) Supporting the formation of village institutions, farmer groups, and customary institutions;

(iv) Strengthening the institutional framework to accelerate the issuance of land use rights for village institutions, farmer groups and customary institutions; and

(v) Strengthening existing technical support (e.g. community facilitators) for forest-dependent communities; as well as knowledge management and technical assistance.

Sub-component 1.3 Knowledge Management and Technical Assistance

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This sub-component is expected to generate learning from social forestry in Indonesia and draw lessons from other countries' experience to contribute to the achievement of project objectives and for the Social Forestry Program. The sub-component is also expected to assess and address capacity requirements at the government and community levels for the implementation of an effective Social Forestry Program, including by supporting the creation of social forestry networks and strengthening community-based micro and small enterprises. Its main activities are supporting knowledge management and technical assistance.

Component 2: Social Forestry development and strengthening

This component aims to support the implementation of an effective and efficient Social Forestry Program. Targets will be achieved through the following three sub-components:

Sub-component 2.1 Management Plan

This sub-component functions to facilitate and provide the community with technical assistance in formulating a sustainable forest management plan. Its main activities include:

(i) Supporting the mechanism for transferring land use rights to the community;

(ii) Mapping and installing boundary stake and land zoning for various uses;

(iii) Developing village forest management plan and management of farmer groups; and

(iv) Implementation of the above-developed management plan.

Sub-component 2.2 Development and Implementation of Community Investment

The proposed project will support the development and/or strengthening of small and micro enterprises in the community in accordance with the management plan described above. The main activity in this sub-component is to develop and run a number of priority investments according to the management plan.

Sub-component 2.3 Development of Community-based Small-Micro Enterprises

This sub-component will promote community access to business financing schemes. The main activity is the development of community-based micro-enterprises. The proposed sub-component will support community/farmer groups in implementing the management plan developed above; develop and encourage investment in economic activities as priority livelihoods according to the management plan prepared with project support in sub-component 2.1 through community grants.

Component 3: Project Management and Monitoring and Evaluation

This component aims to ensure effective and efficient implementation of project activities to achieve project objectives. Its main activities cover the following:

(i) Project management (e.g. fiduciary management, safeguards, etc.); and

(ii) Monitoring and Evaluation.

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The project will entail sub-projects at each site/location. These have been outlined in the project design and used in the ESMF to develop typologies and guidance for the necessary environmental and social risk management approaches. The sub-projects are to be defined specifically during project implementation, however indicative subprojects for each site have been used as a basis for planning the E&S instruments pertaining to this ESMF.

3 Stakeholders and Beneficiaries

3.1 Stakeholder Identification This section presents the identification of key stakeholders targeted in this project, as

follows:

1. Indigenous Peoples and Local Communities (IPLCs)

IPLCs are stakeholders who are highly dependant on forest resources. To IPLCs, forests are not only a provider of agricultural land but also a hunting ground and place to find staple needs such as water, timber, firewood, medicinal plants and various types of food. In fact, in some communities, forests also serve cultural and religious functions. Within the IPLCs as a category, various interest groups can be found, among others:

• Forest farmers: a community group that uses forest land to grow crops. In the past, farmers used the forest land to grow crops in a variety of ways, but nowadays many forest lands are used for the cultivation of commercial crops e.g. oil palm, coffee, rubber, etc.

• Harvesters, collectors or pickers of non-timber forest products such as honey, rattan, jelutung, and so on.

• Community groups that use water and water energy.

• Womens’ groups (the project will ensure a minimum womens’ participation of 30%).

• Other vulnerable groups.

These people may form or be part of the groups formed as the Social Forestry Business Group (DFBG or ‘KUPS’) to run businesses in the field of social forestry.

2. Village Government

A village is the lowest level of government administration in the Republic of Indonesia. Based on Law No. 6 of 2014, the village has the authority to regulate and manage government affairs, interests of the local community based on community initiatives, and origin rights or customary rights. A village, in this instance, a village government under Law No. 6 of 2016, has the task to carry out village development, and village community development and empowerment. One of the main challenges in village community development and empowerment are the increased disparity in agrarian resources control and environmental degradation in the countryside. Social Forestry is one of the answers to the problems occurring in the village. Therefore, the Village Government is one of the key actors involved in the Social Forestry Program.

With the granted authority in managing Village Funds by mandate of the Village Law, the Village Government is expected to contribute to institutional strengthening and Social Forestry funding, including incorporating forestry management activities into the Village

12

Medium-Term Development Plan. Likewise, the Village Government can encourage village-owned enterprises to become partners in marketing the village products.

3. Regional Government

The Forestry Ministerial Regulation No. 83 of 2016 concerning Social Forestry states that the Central Government and Regional Government (Provincial and the District) have the task of facilitating the holders of Social Forestry permit. The facilitation includes assistance in the application phase, institutional strengthening, capacity building including business management, cooperative establishment, working area boundary setting, preparation of a village forest management plan, a business and annual work plan, design of forestry partnership activities, financing, post-harvest, business development, processing technology, business training, market access, and even promotion through various events. In addition, the Provincial Government can concretely contribute to initiating Regional Regulations on Recognition of Indigenous Peoples, or at District Government level, through the District Head Decree on Recognition of Indigenous Peoples.

These contributions are in line with the role of the District Government stipulated in Law No. 23 of 2014 concerning Regional Government. It states that in the field of community and village empowerment, the District/City Government is authorized to establish village governance (penataan desa); facilitation for collaboration between villages in the same district; and coaching and supervision for village government administration. The same thing is also stipulated in the Village Law, that the District/City Government is obliged to provide guidance and supervision over the implementation of the village governance. This includes facilitating, fostering, and supervising the village governance; and making efforts to accelerate rural area or village development through financial support, coaching, and technical assistance.

In the context of implementing village governance, Social Forestry is clearly a part of village development which aims to improve the welfare and wellbeing of rural communities and reduce poverty through meeting basic needs, building village facilities and infrastructure, developing local economic potentials, and utilizing the natural and environmental resources in a sustainable manner.

4. Central Government

The Central Government, in this case, the MoEF has a significant role in social forestry by issuing licenses and legalization, document and on-site verifications, and so on. Despite the challenges, MoEF had played its part and without its active role, the social forestry process would be stagnant.

5. Forest Management Unit (FMU)

Forest Management Unit (FMU) is a site-level institution with the aim of ensuring certainty and realization of economically, socially, ecologically sustainable forest management. As the site-level institution, FMU is the executor of operational and/or technical activities supporting the local agencies in the field of forest management within the designated FMU working area. FMU has functions including implementing forest management activities in its working area, starting from planning, organizing, implementing as well as monitoring and controlling; investment development, cooperation, and partnerships in forest management; implementation of counselling and community empowerment in the field of forestry.

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The roles of FMU in Social Forestry are vital and must constantly be improved. The roles include identifying site-level forest land tenure, community groups that will be actors in the Social Forestry program, land to be allocated for Social Forestry, and facilitating community institutional strengthening.

6. Working Group on Social Forestry (SF-WG)

Similar to FMU, the Working Group on Social Forestry was established to help accelerate social forestry in various regions in Indonesia. This Working Group consists of elements from the Regional Government, Non-Governmental Organizations (NGOs), Universities and parties related to social forestry.

The Working Group on Social Forestry has the duty to disseminate, facilitate and assist the target community up to the site-level, to perform sustainable forest management and utilization as well as business development, and to assist the government in verifying requests for access.

In addition, the Working Group on Social Forestry also functions as a forum for collaborative learning about social forestry by developing field schools and assisting the government in monitoring and evaluating the implementation of the social forestry program.

7. Financial Institutions

One of the issues in agricultural business and social forestry is the unavailability of financial capital. To manage this issue, the government should have been more serious in encouraging financial institutions (banks) to support farmers holding Social Forestry licenses by taking into account the ethical principles of Social Forestry as the financing requirements. The government must give the awareness to encourage funding schemes that benefit and empower the license holders. Any capital loan and investment practices which are potentially detrimental to the license holders should be avoided.

8. NGOs and Universities (Facilitator)

NGOs and universities have been playing an important role in encouraging Social Forestry implementation. Besides advocating Social Forestry policies, NGOs are also actively working in the field. Perhaps more than 90% of the existing Social Forestry working area is the result of NGOs' coaching. In Social Forestry, NGOs' roles include coaching and strengthening of community institutions, identifying and mapping of Social Forestry locations, mentoring social forestry management, and so forth. The involvement of NGOs in Social Forestry has also been institutionalized in the Working Group on Social Forestry Acceleration.

9. Private Sector

The private sector can serve as off-taker, making it easier for the industry in procuring raw materials. The private sector is expected to absorb the output or products generated by the Social Forestry, such as timber and non timber forest products (fruits and nuts,

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High Low

High

Level of Importance (Interest)

Level of Influence (Power)

IPLCs

Provincial Government

District Governmment

Village Government

NGOs and Universities (Facilitator)

Financial Institutions

Private Sector

FMU and WG-SF

vegetables, fish and game, medicinal plants, resins, essences and a range of barks and fibres such as bamboo, rattans, etc.). It means the private sector has a big role in accelerating Social Forestry.

3.2 Stakeholder Analysis based on Power and Interest in Social Forestry Each stakeholder has a different degree of power and importance. Power is the

authority a stakeholder has to influence the others in such a way that makes them act as desired. Interest refers to the stakeholder's purpose and expectations of Social Forestry, which of course can be either constructive or against the Social Forestry objectives.

The SSF Team conducted a stakeholder analysis to identify the level of power and interest each stakeholder has in Social Forestry, as presented in the following figure.

Figure 3

Stakeholders based on Power and Interest in Social Forestry

The stakeholder analysis found that IPLCs have the highest vested interest, but the lowest power. Meanwhile, stakeholders with the highest power are the Central and Provincial Governments, but their interest is not too high. In fact, the Provincial Government has always shown low interest in the Social Forestry program. The risk of having low interest is addressed through the project design where different task forces at the provincial level involving

Central Government (MoEF)

15

government, adat and academics or other specialists will be set up and built into the project institutional arrangements.

More information on stakeholder analysis by level of power and interest in Social Forestry can be seen in Figure 3. The purpose of this analysis and knowledge is to carefully create a strategy to engage all parties so that in the future they can achieve the main objectives of the social forestry program. This strategy is an obligation under the World Bank ESS 10 (Stakeholder Engagement and Information Disclosure) as described in Chapter 4.2 of thisEnvironmental and Social Management Framework. The ESMF, as well as the stakeholder-related analysis, will continually be developed and improved throughout the project.

3.3 Project Beneficiaries Project beneficiaries in the proposed location consist of direct beneficiaries and

indirect beneficiaries. Direct beneficiaries are those who get immediate benefits of the project activities, both from members of farmer groups and non-governmental organizations that are partners to project implementation, and government institutions - both executive and legislative. The micro and emerging small entrepreneurs in the project's social forestry group are also categorized as direct beneficiaries.

Meanwhile, indirect beneficiaries are community members affected by the SSF project activities including farmer household members. The indirect beneficiaries include supporting and off-taking small and medium enterprises that are involved in the supply chains related to interventions in the social forestry groups. In other words, the private sector which collaborates with social forestry business groups is also included as an indirect beneficiary group.The entrepreneurs include sellers of agricultural equipment and fertilizers, small traders selling daily needs, and those running transportation business and providing delivery services. Assuming that 1,000 businesses emerge in each district within 5 (five) years and absorb an average workforce of 10 people, the total indirect beneficiaries would be 60,000 people. The list of direct beneficiaries of the project can be seen in Table 2 below.

Table 2

Direct Beneficiaries

Component Direct Beneficiaries Note

Social Forestry Farmers 26.500 farmers x 5 = 132.500 farmers

530 groups where each of which consists of 50 farmers (a total of 26,500 farmers)

Every farmer has 5 family members 30% of the beneficiaries are women

Community Facilitator 588 people

530 Junior Facilitators

54 Junior Facilitators

4 Expert Facilitators

Government Institutions 520 people

Dir. Area Preparation for Social Forestry (Dit.

PKPS)

Dir. SF and Customary Forest Business Development (Dit. BUPSHA)

Dir. Social Forestry and Environmental Partnership (Dit.PSKL)

Dit BPKHA

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Dir. HRD and Traning (BP2SDM)

Dir. Protected Forest Management Unit

(Dit. KPHL)

Dir. Production Forest Management Unit (Dit.

KPHP)

Public Service Agency for Forest Development Financing Center

(BLU Pusat P2H)

5 Provincial Governments

5 Provincial Parliaments

6 District/City Governments

6 District/City Parliaments

12 FMUs

3 Center for Social Forestry and

Environmental Partnership (BPSKL)

5 Center for Watershed and Protected Forest Management (BPDASHL)

2 Center for Production Forest Management

(BPHP)

Total 52 units, 10 people each unit

Private Sector 80 people

3 private companies in each District/City with 5 people from each company

Source: Discussion of the SSF PDD Preparation Team

17

4 Project Related Safeguard Policies

4.1 National Policies The section describes policies and regulations existing in Indonesia at the time of

ESMF preparation, highlighting those that serve as guidelines for managing environmental and social impacts that can potentially arise from the SSF Project. Some key national policies are listed in the following table:

Table 3

National Policies as SSF Project Safeguard references

Issue Policy Concerning Responsibility

Related to Social Forestry

Social Forestry as a national program

Government Regulation No. 6 of 2007 in conjunction with Government Regulation No. 3 of 2008

Forest Arrangement and Formulation of Forest Management Plan


Presidential Regulation No. 2 of 2015

2015-2019 National Medium-Term Development Planning (NMTDP)

Ministry of National Development Planning/ BAPPENAS


Settlement of Land Tenure in Forest Areas



Agrarian Reform Ministry of Agrarian and Spatial Planning/National Land Agency

Regulations on Social Forestry

Regulation of the Minister of Environment and Forestry No. 83 of 2016

Social Forestry Ministry of Environment and Forestry


Titled Forest Ministry of Environment and Forestry

Regulation of the DG-Social Forestry and Environmental Partnership (PSKL) No. P. 11/PSKL/SET/PSL.0/11/2016

Guidelines for the Verification of Village Forest Management


18

License Requests (HPHD)


Guidelines for the Verification of Community Forest Management License Requests (IUPHKm)



Guidelines for the Verification of Requests for Business License for the Utilization of Timber Forest Products in Community Plantation Forest (IUPHHK-HTR)



Guidelines for the Preparation of Cooperation Agreement


Regulation of the DG-Social Forestry and Environmental Partnership (PSKL) No. P. 1/PSKL/SET/KUM.1/2016

Guidelines for the Verification and Validation of Titled Forest



concerning Facility, Establishment and Work Procedure of WG-FS


Decree of the DG-Social Forestry and Environmental Partnership (PSKL) SK.33/PSKL/SET/PSL.0/5/2016

Establishment of Working Group on Social Forestry Acceleration


Regulation of the DG-Social Forestry and Environmental Partnership (PSKL) No. P.2/PSKL/SET/KUM.1/3/2017

Guidelines for Development, Control and Evaluation of Social Forestry


Regulation of the Minister of Village, Development of Disadvantaged Regions and Transmigration No. 18 of 2016

Use of Village Fund Minister of Village, Development of Disadvantaged Regions and Transmigration

Regulation of the Coordinating Minister for Economic Affairs No. 73 of 2017

Agrarian Reform Team Ministry of Agrarian and Spatial Planning/National Land Agency

Related Environmental and Social Impact Assessment and Management

Guidelines for managing environmental

Law No. 32 of 2009 Environmental Protection and Management


19

impacts arising from a project/activity

Government Regulation No. 27 of 2012

Environmental Permit Ministry of Environment and Forestry

Regulation of the Minister of Environment No. 16 of 2012

Guidelines for the Preparation of Environmental Documents



Types of Business Plans and/or Activities that Require EIA (AMDAL)


Regulation of the Minister of Public Work No. 10/PRT/M/2008

Establishment of Jenis Types of Business Plans and/or Activities that Require Environmental Management and Monitoring Efforts (UKL-UPL) document

Ministry of Public Works

Strategic Environmental Assessment


Procedure for Implementation of Strategic Environmental Assessment

Ministry of Home Affairs


Implementation of Government Regulation No. 46 of 2016 concerning Procedure for Implementation of Strategic Environmental Assessment


Areas with High Conservation Value (HCV)

Law No. 5 of 1990 Conservation of Living Natural Resources and their Ecosystems


Law No. 5 of 1994 Ratification of the United Nations Convention on Biodiversity


Law No. 41 of 1999 Forestry Ministry of Environment and Forestry


Preservation of Flora and Fauna Species



Animal Quarantine Ministry of Agriculture

Minisry of Environment and Forestry


Guidelines for Biodiversity Conservation in the Regional Level


20

Pest Control Law No. 12 of 1992 Plant Cultivation System

Ministry of Agriculture

Law No. 23 of 1992 Health Ministry of Health

Law No. 8 of 1999 Consumer Protection Ministry of Commerce




Supervision of Circulation, Storage and Use of Pesticides



Plant Protection Ministry of Agriculture


Regulation of the Minister of Agriculture No. 24/Permentan/SR.140/4/2011

Terms and Procedures for Pesticide Registration


Guidance of the Minister of Agriculture

Integrated Pest Management


Land Acquisition and Involuntary Resettlement

Law No. 2 Tahun 2012 Land Acquisition for Development in Public Interest

National Land Agency (ATR/BPN)

Basic Agrarian Law No. 5 on 1960 Agrarian National Land Agency (ATR/BPN)


The Implementation of

Land Acquisition for Development in the Public Interest


PresidentialRegulation No. 65 of 2006

Amendment of Presidential Regulation No. 36 of 2005 concerning Land Acquisition for Development in the Public Interest


Regulation of the Head of National Land Agency of the Republic of Indonesia No. 3 of 2007

Provisions for the Implementation of Presidential Regulation No. 36 of 2005 concerning Land Acquisition for Development in the Public Interest as amended by


21

Presidential Regulation No. 65 of 2006 concerning Amendment of Presidential Regulation No.36 of 2005

Joint Ministerial Regulation of the MoHA, MoEF, MoPW and Head the National Land Agency

Procedures to Settle Land Ownership Conflict in Forest Area

MoHA, MoEF, MoPW and National Land Agency

Human Rights and Social Welfare

Law No. 39 of 1999

Human Rights Ministry of Law and Human Rights

Law No. 11 of 2005

Ratification of the International Covenant on Economic, Social and Cultural Rights

Ministry of Education and Culture

Law No. 11 of 2009

Social Welfare Ministry of Social Welfare

Community Participation



Law No. 10 of 2004 in conjunction with Law No. 12 of 2011

Formulation of Legislation

Government of Indonesia/ Secretary of State



Forestry Planning Ministry of Environment and Forestry


Forest Arrangement and Preparation of Forest Management Plan, and Forest Utilization


Decree of the Minister of Forestry No. 32/Kpts-II/2001

Criteria and Standards for Forest Area Gazettement


Manpower Law No. 13 of 2003 Manpower Ministry of Manpower

Information Disclosure

Law No. 14 of 2008 Public Information Disclosure


Regulation of the Minister of Forestry No. P.7/Menhut-II/2011

Public Information Services in the Ministry of Forestry


Related to Conflict Resolution and Indigenous Peoples

22

Conflict Resolution

Law No. 7 of 2012 Social Conflict Management

Ministry of Law and Human Rights

Regulation of the Supreme Court No. 1 of 2016

Mediation Procedure at Court

Supreme Court

Regulation of the Minister of Environment and Forestry No. P84/MenLHK-Setjen/2015 in conjunction with Regulation of the DG-Social Forestry and Environmental Partnership (PSKL) No. 4/ PSKL/ SET/ PSKL.1/4/2016 in conjunction with Regulation of the DG-Social Forestry and Environmental Partnership (PSKL) No. 6/2016

Management of Tenurial Conflict in Forest Area

Guidelines for Mediation of Social and Tenurial Conflict in Forest Area

Guidelines for Assessment of Tenurial Conflict in Forest Area




Settlement of Land Tenure in Forest Area



Indigenous Peoples and Allocation of Forest Areas

Law No. 6 of 2014 Village Ministry of Villages, Development of Underdeveloped Regions and Transmigration


Regulation of the Minister of Home Affairs No. 52 of 2014

Guidelines for Recognition and Protection of Indigenous Peoples

Ministry of Home Affairs

Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency No. 9 of 2015

Procedures to Establish Communal Right on Indigenous Peoples' Land in Certain Area

Ministry of Agrarian Affairs and Spatial Planning (ATR/BPN)


Titled Forest Ministry of Environment and Forestry


Settlement of Land Tenure in Forest Area



23

Regulation of the Minister of Forestry No. P. 44/Menhut-II/2012 in conjunction with Regulation of the Minister of Forestry No. P. 62/Menhut-II/2013

Forest Area Gagettment (regulating the management of indigenous peoples' right in the process of forest area gazettement)


Related to Social Forestry, it is important to note that Social Forestry has now obtained regulatory support from various levels, both in the form of Government Regulation, Presidential Regulation, Coordinating Ministerial Regulation, Ministerial Regulation, Director General Regulation and regional-level regulations. As a national program, Social Forestry is based on Government Regulation No. 6 of 2007, in conjunction with Government Regulation No. 3 of 2008, and 3 (three) presidential regulations i.e. Presidential Regulation No. 2 of 2015 concerning 2015-2019 NMTDP, Presidential Regulation No. 88 of 2017 concerning Settlement of Land Tenure in Forest Area, and Presidential Regulation No. 86 of 2018 concerning Agrarian Reform. Until 2018, MoEF had issued 4 (four) ministerial regulations, 23 regulations of the DG of Social Forestry and Environmental Partnership (PSKL) to regulate social forestry. In addition, there is regulatory support from the Ministry of Village, Development of Disadvantaged Regions and Transmigration i.e Ministerial Regulation No. 18 of 2016 concerning the use of village fund, as well as Regulation of the Coordinating Minister for Economic Affairs No. 73 of 2017 concerning the Agrarian Reform Team. At the regional level, there are at least 7 regulations issued by 7 provinces regarding mechanisms for facilitation of social forestry.

Related to Environmental and Social Impact Assessment, there are guidelines for management of environmental impacts arising from a project/activity referring to Law No. 32 of 2009 concerning Environmental Protection and Management. As a derivative, Government Regulation No. 27 of 2012 concerning Environmental Permit was issued, which emphasizes the importance of preparing various environmental assessment documents in the form of AMDAL (Environmental Impact Analysis) or UKL/UPL (Environmental Management Efforts/Environmental Monitoring Efforts) for activities that have the potential to cause environmental impacts. The regulation explains in detail about the requirement of AMDAL,3 UKL/UPL,4 or SPPL,5 licensing process, guidelines for preparation of various environmental documents, community participation and public consultation, grievance redress mechanism, implementation and monitoring of management and mitigation measures to address significant negative impacts. Moreover, the Regulation of the Minister of Environment No. 16 of 2012 concerning Guidelines for Preparation of Environmental Documents was also issued. The regulation describes guidelines for preparation of AMDAL as well as UKL-UPL and SPPL forms.

In addition, other supporting regulations include Regulation of the Minister of Environment No. 5 of 2012 concerning Types of Business Plans and/or Activities that Require AMDAL. The regulation also lists the activities that do not require AMDAL e.g. research and development activities in the field of science, activities that support the preservation of protected areas, cultivation activities that do not significantly affect the environment, and

3 Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL) is the management and monitoring

of businesses and/or activities that do not have significant impacts on the environment needed for the decision-making process

regarding the operation of businesses and/or activities. 4 Environmental Impact Analysis (AMDAL), hereinafter referred to as AMDAL, the assessment of significant impacts of

projected businesses and/or activities on the environment needed for the decision-making process regarding the operation of the businesses and/or activities.

5 The Commitment Letter for Implementation of Environmental Management and Monitoring (SPPL) is a statement to monitor and manage the environmental impact of businesses/activities exempted from the requirements of the AMDAL or UKL-UPL.

24

cultivation activities that are permitted for indigenous peoples on a fixed size of land and does not reduce the protective function of the area and under strict supervision. Further details on the types of business plans and/or activities that require AMDAL are listed in the Annex of the said regulation. Also, Regulation of the Minister of Public Works No. 10/PRT/M/2008 concerning Determination of Types of Business Plans and/or Activities in the Field of Public Works that require Environmental Management Efforts and Environmental Monitoring Efforts (UKL/UPL). The Regulation contains and elaborates a list of activities that require UKL-UPL.

Several policies and regulations related to areas with High Conservation Value (HCV) also exist, in particular Law No. 5 of 1990 concerning Conservation of Living Natural Resources and their Ecosystems, Law No. 5 of 1994 concerning Ratification of United Nations Convention on Biodiversity, Law No. 41 on Forestry, Government Regulation No. 7 of 1999 concerning Preservation of Flora and Fauna Species, Government Regulation No. 82 of 2000 concerning Animal Quarantine, and Regulation of the minister of Environment No. 29 of 2009 concerning Guidelines for Biodiversity Conservation in the Regional Level.

In relation to pest control, there are several policies in Indonesia such as Law No. 12 of 1992 concerning Plant Cultivation System, Law No. 23 of 1992 concerning Health, Law No. 8 of 1999 concerning Consumer Protection, Law No. 32 of 2009 concerning Environmental Protection and Management, Government Regulation No. 7 of 1973 concerning Supervision of Circulation, Storage and Use of Pesticides, Government Regulation No. 6 of 1995 concerning Plant Protection, Regulation of the Minister of Agriculture No. 24/Permentan/SR.140/4/2011 concerning Terms and Procedures for Pesticide Registration, and Regulation of the Minister of Agriculture concerning Integrated Pest Control.

With respect to land acquisition and resettlement, there are several policies and regulations in Indonesia i.e. Law No. 2 of 2012 concerning Land Acquisition for Development in Public Interest, Presidential Regulation No. 71 of 2012 concerning the Implementation of Land Acquisition for Development in Public Interest, and Basic Agrarian Law No. 5 of 1960. Another regulation is Regulation of the Head of National Land Agency of the Republic of Indonesia No. 3 of 2007 concerning Provisions for the Implementation of Presidential Regulation No. 36 of 2005 concerning Land Acquisition for Development in the Public Interest as amended by Presidential Regulation No. 65 of 2006 concerning Amendment of Presidential Regulation No. 36 of 2005. In addition, the Joint Ministerial Regulation of the MoHA, MoEF, MoPW and Head the National Land Agency concerning Procedures to Settle Land Ownership Conflict in Forest Area was also put in place. The foregoing policies are accompanied by human rights-related laws namely the Law No. 39 of 1999, Law. No. 11 of 2005 concerning Ratification of the International Covenant on Economic, Social and Cultural Rights, and Law No. 11 of 2009

concerning Social Welfare.

Provisions related to community participation can be found in the 1945 Constitution, at least in at least 15 laws, and several derivative regulations such as relevant Government Regulations or Ministerial Regulations. Community participation that specifically related to the project is addressed by Law No. 32 of 2009 concerning Environmental Protection and Management in lieu of Law No. 23 of 1997 concerning Environmental Management, Article 2, Point k, which states that environmental protection and management shall be performed based on the principle of Participation. Law No. 10 of 2004 in conjunction with Law No. 12 of 2011 concerning Formulation of Legislation also requires community participation in the effort of developing policies.

Community participation is also mandated by Law No. 41 of 1999 concerning Forestry, hereinafter simply referred to as the Law No. 41/1999. Article 11 Paragraph (2) states that "Forestry planning shall be prepared in a transparent, accountable, participatory, integrated manner and taking regional peculiarity and aspirations into account". Moreover, Law No.

25

41/1999 has a special chapter, Chapter X, which stipulates 'community participation' described in Articles 68, 69 and 70.

Some derivative regulations were issued to regulate community participation such as Government Regulation No. 44/2004 concerning Forestry Planning, in which the Article 4, point (a) states that "Forestry planning shall be prepared in a transparent, participatory and accountable”, including some articles which outline the forms of community participation in forestry planning. Likewise, the Decree of the Minister of Forestry No. 32/Kpts-II/2001 concerning Criteria and Standards for Forest Area Gazettement, Article 7, Paragraph (2), point c on Forest Boundaries Demarcation also states that the area for forest boundaries demarcation shall obtain recognition from the parties (community, legal entity, government) along the demarcation line. Article 8 even states that the Demarcation Committee led by the District Head/Mayor shall involve the local community leaders/customary leaders.

The provisions related to labour are set forth in Law No. 13 of 2004 concerning Manpower (labour), while those related to information disclosure are stipulated in Law No. 14 of 2008 concerning Public Information Disclosure. Referring to this Law on Public Information Disclose, the Regulation of the Minister of Environment and Forestry No. P.7/Menhut-II/2011 concerning Public Information Services in the Ministry of Forestry. Article 2, paragraph (1) of this ministerial regulation states that every public information is open in nature and can be accessed by every user of public information, except information that is exempted. Article 9 of this ministerial regulation also lists various types of public information that are available at any time e.g. information on total area and distribution, status of forest area gazettement, changes in designation, changes in function, borrow-to-use of forest area, water conservation, information on forest cover, changes in forest cover, socio-economic conditions of forest communities, utilization and use of forest areas, information on production forest that have not been subject to business license, data on forest area release for each province, and so forth. Besides, Article 17, Paragraph (1), point c of this ministerial regulation states that information providers shall be obliged to provide responses to requests for information.

With respect to conflict resolution, Indonesia has Law No. 7 of 2012 concerning Social Conflict Management, Supreme Court Regulation No. 1 of 2016 concerning Procedure for Mediation in Court, and Regulation of the Minister of Environment and Forestry No. P84/MenLHK-Secretariat/2015 concerning Management of Tenurial Conflict in Forest Area in conjunction with Regulation of the DG-Social Forestry and Environmental Partnership (PSKL) No. 4/ PSKL/ SET/ PSKL.1/4/2016 concerning Guidelines for Mediation of Social Tenurial Conflict in Forest Area in conjunction with Regulation of the DG-Social Forestry and Environmental Partnership (PSKL) No. 6/2016 concerning Guidelines for Assessment of Tenurial Conflict in Forest Area.

Regarding Indigenous Peoples, there are at least five pieces of legislation that can be used to obtain legal recognition of indigenous peoples’ rights. The five legislations include Law No. 6 of 2014 concerning Village, Law No. 41 concerning Forestry, Regulation of the Minister of Home Affairs No. 52 of 2014 concerning Guidelines for Recognition and Protection of Indigenous Peoples, Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency No. 9 of 2015 concerning Procedures to Establish Communal Right on Indigenous Peoples' Land in Certain Area, Regulation of the Minister of Environment and Forestry No. 32 of 2015 concerning Titled Forest, and Presidential Regulation No. 88 of 2017 concerning Settlement of Land Tenure in Forest Area. In addition, there is Regulation of the Minister of Forestry No. P. 44/Menhut-II/2012 in conjunction with Regulation of the Minister of Forestry No. P. 62/Menhut-II/2013 Forest Area Gagettment which regulates the management of indigenous peoples' right in the process of forest area gazettement). Another relevant regulation is the Regulation of the Minister of Forestry No. P. 62/Menhut-II/2013,

26

which mentions that the Constitutional Court Ruling No. 35 (MK35) in its considerations require the recognition of Indigenous Peoples to be done under Regional/Local Regulation (Province/District/City). To clarify what has been set forth in Article 67 paragraph (2) of Law No. 41, the Ministerial Regulation No. P. 62/Menhut-II/2013 added that the Regional/Local Regulation shall be accompanied by maps of indigenous territories.

4.2 The World Bank’s Environmental and Social Framework (ESF) The Environmental and Social Framework (ESF) 6 consolidates the World Bank’s

environmental and social policies. It is intended to boost protection for people and the environment; promote capacity and institution-strengthening and country ownership; and to enhance efficiency for both the Government and the World Bank.

As part of the ESF, the Borrower is responsible for implementing the Environmental and Social Standards. These standards are designed to help Governments manage project risks and impacts, and improve environmental and social performance, consistent with good international practice and national and international obligations. Each standard includes objectives that define the environmental and social outcomes to be achieved. It also includes requirements that help Governments achieve the Environmental and Social Standard objectives through means appropriate to the nature, scale and risks of a project. The 10 (ten) Environmental and Social Standards are described in the table below.

Table 4

The World Bank's Environmental and Social Standards (ESS)

Standard Concerning

ESS1 Assessment and Management of Environmental and Social Risks and Impacts

ESS2 Labor and Working Conditions

ESS3 Resource Efficiency and Pollution Prevention and Management

ESS4 Community Health and Safety

ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement

ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources

ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities

ESS8 Cultural Heritage

ESS9 Financial Intermediaries/FI

ESS10

Stakeholder Engagement and Information Disclosure in the preparation of ESMF for this project.

The highlights of each Environmental and Social Standard (ESS) are as follows:

a. ESS1 Assessment and Management of Environmental and Social Risks and Impacts

6 https://www.worldbank.org/en/projects-operations/environmental-and-social-framework

27

- The types of Environmental and Social risks and impacts that should be considered in the environmental and social assessment

- Clear definition of “project” and “Associated Facilities” and how the Standards apply to them

- The use and strengthening of the Government’s environmental and social framework for the assessment, development and implementation of world Bank financed projects where appropriate

- A Common Approach, where the World Bank is jointly financing a project with other development partners

- An Environmental and Social Commitment Plan (ESCP), developed in agreement with the World Bank, which sets out a summary of the material measures and actions for mitigation and monitoring

- Emphasis on non-discrimination and inclusion

- Requirements for management of contractors

b. ESS2 Labor and Working conditions

- Requirements for the Government to prepare and adopt labor management procedures

- Provisions on the treatment of direct, contracted, community, and primary supply workers, and government civil servants

- Requirements on terms and conditions of work, non-discrimination and equal opportunity and workers organizations

- Provisions on child labor and forced labor

- Requirements on occupational health and safety, in keeping with the World Bank Group’s Environmental, Health, and Safety Guidelines (EHSG)

- Requirement for a grievance mechanism

c. ESS3 Resource Efficiency and Pollution Prevention and Management

- Requires technically and financially feasible measures to improve efficient consumption of energy, water, and raw materials, and introduces specific requirements for water efficiency where a project has high water demand

- Requires an estimate of gross greenhouse gas emissions resulting from project (unless minor), where technically and financially feasible

- Requirements on management of wastes, chemical and hazardous materials, and contains provisions to address historical pollution

- Requires management of pesticides, preferring integrated pest management (IPM) and integrated vector management (IVM), and where pesticides are necessary, minimizing risks to human health and the environment

- The standard refers to national law and Good International Industry Practice, in the first instance the world Bank EHSGs

28

d. ESS4 Community Health and Safety

- Requirements related to infrastructure, taking into account safety and climate change, and applying the concept of universal access, where technically and financially feasible

- Requirements on traffic and road safety, including road safety assessments and monitoring

- Addresses risks arising from impacts on provisioning and regulating ecosystem services

- Measures to avoid or minimize the risk of water-related, communicable, and non-communicable diseases

- Dam safety requirements that are proportionate to potential risks

- Requirements to assessment risks associated with security personnel, and review and report unlawful and abusive acts to relevant authorities

e. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement

- Applies to permanent or temporary physical and economic displacement resulting from different types of land acquisition and restrictions on access

- Does not apply to voluntary market transactions, except where these affect third parties

- Provides criteria for “voluntary” land donations, sale of community land, and parties obtaining income from illegal rentals

- Prohibits forced eviction

- Requires that acquisition of land and assets happens only after payment of compensation and resettlement has occurred

- Includes requirements for livelihood restitution efforts for parties impacted by access restriction or loss of incomes

- Includes requirements relating to consultation with women and documentation of ownership in joint names

- Requires community participation and consultation, disclosure of information and a grievance mechanism

f. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources

- Definitions and requirements for modified habitats, natural habitats and critical habitats

- Requirements for projects affecting areas that are legally protected, designated for protection or regionally/internationally recognized to be of high biodiversity value

- Requirements on sustainable management of living natural resources, including primary production and harvesting, distinguishing between small-scale and commercial activities

- Provisions for avoiding introduction of and managing the impacts of, invasive alien species

29

- Provisions relating to animal husbandry practices in large-scale commercial farming

- Requirements relating to primary suppliers, where a project is purchasing natural resource commodities, including food, timber and fiber

g. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities

- Applies when the people are present or have a collective attachment to the land, whether they are affected positively or negatively and regardless of economic, political or social vulnerability

- The option to use different terminologies for groups that meet the criteria set out in the Standard

- The use of national screening processes, providing these meet World Bank criteria and requirements

- Coverage of forest dwellers, hunter-gatherers, and pastoralists and other nomadic groups

- Requirements for meaningful consultation tailored to affected parties and a grievance mechanism

- Requirements for a process of free, prior and informed consent (FPIC)

h. ESS8 Cultural Heritage

- Covers both tangible and intangible cultural heritage; Tangible cultural heritage may be located in urban or rural settings, be above or below land or under water, and includes natural features and landscapes; Intangible cultural heritage includes practices, representations, expressions, knowledge, and skills

- Requires a chance finds procedure to be established

- Recognition of the need to ensure peoples’ continued access to culturally important sides, as well as the need for confidentiality when revealing information about cultural heritage assets that would compromise or jeopardize their safety or integrity

- Requirement for fair and equitable sharing of benefits from commercial use of cultural resources

- Provisions on archaeological sites and material, built heritage, natural features with cultural significance, and movable cultural heritage

i. ESS9 Financial Intermediaries/FI

- Requirements for Financial Intermediaries to have an Environmental and Social Management System (ESMS) covering policy, procedures, organizational capacity and competence, monitoring and reporting, and stakeholder engagement

- Financial Intermediary subprojects to be prepared and implemented in accordance with national law and in addition, to apply relevant requirements of ESSs if a Financial Intermediary subproject involves resettlement, adverse risks on Indigenous Peoples, or significant risks/impacts on environment, community health and safety, labor, biodiversity or cultural heritage

30

- Financial Intermediaries to develop a categorization system for all subprojects; with special provisions for subprojects categorized as high or substantial

- Financial Intermediary borrowers to conduct stakeholder engagement in a manner proportionate to the risks and impacts of their subprojects

- Financial Intermediary sub-borrowers to disclose project-related documents required by application of the ESSs, including for sub-projects classified as High Risk

j. ESS10 Stakeholder Engagement and Information Disclosure in the preparation of ESMF for this project

- Requires stakeholder engagement throughout the project life-cycle, and preparation and implementation of a Stakeholder Engagement Plan (SEP)

- Requires early identification of stakeholders, both project-affected parties and other interested parties, and clarification on how effective engagement will take place

- Stakeholder engagement to be conducted in a manner proportionate to the nature, scale, risks and impacts of the project, and appropriate to stakeholders’ interests

- Specifies what is required for information disclosure and to achieve meaningful consultation

- Requires an inclusive and responsive grievance mechanism, accessible to all project-affected parties, and proportionate to project risks and impacts

Additionally, borrowers or grant and project recipients are required to implement relevant requirements of the World Bank Group Environmental, Health, and Safety Guidelines (WBG EHSGs)7. The requirements are in the form of technical reference documents that contain general and sector-specific examples of Good International Industry Practice (GIIP). In the case of discrepancy between national requirements and quality standards or mitigation measures included in the EHSGs, the borrowers or grant recipients shall exercise the more stringent requirements.

4.3 Gap Analysis on National Policy and the World Bank Environmental and Social Framework

The following discussion is regarding gaps between the national-level policies and the World Bank environmental and social framework. The identified gaps confirm the need for implementation measures as mentioned in the ESMF as the overarching safeguard instrument for the SFF project.

7

https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-

ifc/policies-standards/ehs-guidelines

ESMF for Strengthening Social Forestry

Table 5

Summary of Gaps between Indonesian Regulations and World Bank Environmental and Social Standards (ESSs)

Aspect World Bank Standard Indonesian Regulation Gap ESMF Role

ESS1 Assessment and Management of Environmental and Social Risks and Impacts

Environmental and

Social Assessment

ESS1 Paragraph 3 states

that Borrowers will conduct

environmental and social

assessment of projects

proposed for Bank financing

to help ensure that projects

are environmentally and

socially sound and

sustainable. The


assessment will be

proportionate to the risks

and impacts of the project. It

will inform the design of the

project and be used to

identify mitigation measures

and actions and to improve

decision making.

Minister of Environment Regulation No 5/2012 specifies

the requirement for conducting screening and also

environmental and social impact assessment (ESIA) in

the form of AMDAL (Analisis Mengenai Dampak

Lingkungan) or UKL-UPL (Upaya Pengelolaan

Lingkungan-Upaya Pemantauan Lingkungan)

documents or letter of statement for undertaking

environmental management and monitoring, SPPL

(Surat Pernyataan Pengelolaan Lingkungan).

AMDAL, UKL-UPL and/or

SPPL is more based on

threshold value while ESIA

and ESMP are based on

magnitude of impact.

Environmental and social

impact assessment for ESIA

follows the Bank requirements

as described in SSF ESMF

Annex 4 for the outline of

ESMP and information on

developing UKL-UPL and

SPPL (ESIA and ESMP)

acceptable to the Bank; Annex

5 for ECOP and WBG General

EHS and Infrastructure Sector

Guidelines, Annex 18 for

Environmental Management

Procedures for Construction

Activity.

Environmental and

Social Assessment

ESS1 Paragraph 5 states

that in assessing,

developing and

implementing a project

supported by Investment

Project Financing, the

Borrower may, where

appropriate, agree with the

Bank to use all or part of the

Borrower’s national

Based on Minister of Environment Regulation No

5/2012, Appendix 1, a screening of potential impacts is

conducted to determine the type of environmental

documents that will be required (AMDAL/UKL-

UPL/SPPL) based on criteria described in the

regulation.

The screening process does

not consider the presence of

social impacts due to land

acquisition/involuntary

resettlement, impact towards

indigenous peoples as

defined in ESS7 and physical

cultural resources as defined

in ESS8.

SSF ESMF develops a

screening process for sub-

project proposals that include

identification of potential

impact towards involuntary

resettlement, indigenous

peoples, and physical cultural

resources. (Annex 3 and 4 for

Subproject Screening and

Development of ESMPs)




framework to address the

risks and impacts of the

project, providing such use

will enable the project to

achieve objectives

materially consistent with

the ESSs.

Paragraph 10: ESS1 also

applies to all Associated

Facilities8. Associated

Facilities will meet the

requirements of the ESSs,

to the extent that the

Borrower has control or

influence over such

Associated Facilities

Paragraph 23: The

assessment will be

proportionate to the

potential risks and impacts

of the project, and will

assess, in an integrated

way, all relevant direct,

indirect and cumulative


risks and impacts

throughout the project life

cycle, including those

specifically identified in

ESSs2–10.

Supporting facilities are included in the scope to be

assessed in the Minister of Environment Regulation No

5/2012.

Intensity, reversibility and and cumulative

characteristics of environmental and social impacts are

used to evaluate the significance of the impacts.

Even though supporting

facilities are included in the

scope of environmental

assessment, the term

‘supporting facilities’ is not as

clearly defined as the term

‘associated facilties’ in ESS1.

The depth of the assessment

of cumulative impact needs

more enforcement and

capacity enhancement in the

implementation.

SSF ESMF provides

clarification that associated

facilities as per the definition in

ESS1 are included in the

scope of assessment.

SSF ESMF provides

requiements to include

cumulative impacts in the

scope of assessment.

8 For the purpose of the ESS, the term “Associated Facilities” means facilities or activities that are not funded as part of the project and are: (a) directly and significantly related to the project; (b) carried out, or planned to be carried out, contemporaneously with the project; and (c) necessary for the project to be viable and would not have been constructed, expanded or conducted if the project did not exist.



Capacity of borrowers

in conducting social and

environmental

assessment,

management and

monitoring

ESS1 B Institutional

Capacity Paragraph 11: The

Borrower may include

components in the project to

strengthen its legal or

technical capacity to carry

out key environmental and

social assessment

functions. If the Bank

concludes that the Borrower

has inadequate legal or

technical capacity to carry

out such functions, the Bank

may require strengthening

programs to be included as

part of the project. If the

project includes one or more

elements of capacity

strengthening, these

elements will be subject to

periodic monitoring and

evaluation as required by

ESS1.

Minister of Environment No 07/2010 established the

need for having license for the ESIA compiler.

The borrower could hire

licensed consultant to

conduct the social and

environmental assessment

and prepare the management

and monitoring plan, however

there is no requirement on

capacity strengthening for

loan project.

SSF ESMF accommodates

the need for training on social

and environmental aspects

and these should be part of

the Environmental and Social

Commitment Plan, a

document that contains

specific dated commitments

outlining the mandatory


management processes and

procedures and is legally

biding as it is referenced in the

Project Legal agreements

which is signed by the

government and the World

Bank.

Cost estimate of ESMP

to ensure “the

adequacy of financing

arrangements for

ESMP”.

ESS1-Annex1 Point E

Indicative Outline of ESMP

point (d) states that the

ESMP provides the capital

and recurrent cost estimates

and sources of funds for

implementing the ESMP.

These figures are also

Ministry of Environment Decree No. 45/2005

concerning Guideline for Compiling the EMP

Implementation Report.

The source of fund for ESMP

implementation is not

addressed in this GOI

regulation.

This is addressed in the

Section 6.6 and Annex 4 of

this ESMF.



integrated into the total

project cost tables.

Environmental Permit ESS1 Assessment and

Management of

Environmental and Social

Risks and Impacts

Government Regulation No. 27/2012 on Environmental

Permit requires all project proponents to have an

Environmental Permit for their activities.

Not regulated in ESS1 SSF ESMF follows the

relevant Government of

Indonesia’s Regulation on

environmental permit.

ESS10 Stakeholder Engagement and Information Disclosure

Public Consultation ESS10 Paragraph 19: The

Borrower will disclose

project information to allow

stakeholders to understand

the risks and impacts of the

project, and potential

opportunities. The Borrower

will provide stakeholders

with access to the following

information, as early as

possible before the Bank

proceeds to project

appraisal, and in a

timeframe that enables

meaningful consultations

with stakeholders on project

design.

Regulated in the Minister of Environment Regulation

No. 17/2012 concerning Guidelines on Community

Involvement in the AMDAL and Environment Permitting

Process.

The government disclosure

requirement is not as rigorous

as the Bank’s requirement.

Only AMDAL requires public

consultation prior to TOR

development; UKL-UPL and

SPPL do not require public

consultation.

The SSF ESMF

accommodates the

consultation and information

disclosure process which

includes the social and

environmental documents and

public consultation concerning

ESMF and sub-project

safeguards documents

(ESMP, LARAP, IPP). Refer to

National Forestry Board Public

Consultation Guidelines and

Stakeholder Engagement Plan

(Annex 17).

ESS2 Labor and Working Conditions

Labor and working

conditions requirements

ESS2 Paragraph 3: The

scope of application of

ESS2 depends on the type

of employment relationship

between the Borrower and

the project workers. The

term “project worker” refers

to: (a) people employed or

Indonesia has Labor Law (Undang-Undang

Ketenagakerjaan) 13/2003 that covers direct worker

and contracted worker and Ministry of Labor and

Transmigration Kep. 113/Men/VII/2004 concerning

Protection for Child Workers in Developing their Talents

and Interests.

The regulation does not cover

primary supply workers and

community workers.

SSF ESMF provides

clarification that the primary

supply workers and

community workers are

included in the Labor

Management Plan that will be

prepared prior to

implementation.



engaged directly by the

Borrower (including the

project proponent and the

project implementing

agencies) to work

specifically in relation to the

project (direct workers); (b)

people employed or

engaged through third

parties to perform work

related to core functions of

the project, regardless of

location (contracted

workers); (c) people

employed or engaged by the

Borrower’s primary suppliers

(primary supply workers);

and (d) people employed or

engaged in providing

community labor

(community workers).

ESS2 applies to project

workers including fulltime,

part-time, temporary,

seasonal and migrant

workers.

ESS3 Resource Efficiency and Pollution Prevention and Management

Sustainable use of

resources, including

energy, water and raw

materials


Borrower will implement

technically and financially

feasible measures for

improving efficient

consumption of energy,

There are various GOI regulations requiring and

supporting conservation of energy, water, raw materials

and other resources, namely:

- GOI Regulation 70/2009 concerning Energy

Conservation related to tax and import duties

dispensation

- Instruction President 13/2011 concerning Energy and

Water Savings

No gaps identified.



water and raw materials, as

well as other resources.

- Ministry of Energy and Mineral Resources 12/2012

concerning Management of Fuel Use


concerning Electricity Energy Saving


concerning Energy Management

- Ministry of Public Works 2/2015 concerning Green

Building Construction

- Governor of DKI Jakarta Decree 38/2012 concering

Green Building

- Etc.

Pollution prevention ESS3 Paragraph 11: The

Borrower will avoid the

release of pollutants or,

when avoidance is not

feasible, minimize and

control the concentration

and mass flow of their

release using the

performance levels and

measures specified in

national law or the EHSGs,

whichever is most stringent.

This applies to the release

of pollutants to air, water

and land due to routine,

nonroutine, and accidental

circumstances, and with the

potential for local, regional,

and transboundary impacts.

GOI regulations stipulated standards for air and

greenhouse gas emissions, wastewater discharges,

contaminated soil rehabilitation, waste management.

Some of the standards are less stringent than EHS

Guidelines, but some are also more stringent.

Gaps identified for GOI

standards which are less

stringent than EHS

Guidelines.

SSF ESMF covers this

requirement in Chapter 4 and

in the Annex 5 for ECOP and

WBG General EHS

Guidelines.

Pesticide use ESS3 Paragraph 21: Where

projects involve recourse to

pest management

measures, the Borrower will

give preference to

There are GOI regulations relevant to pesticide use,

namely:

- GOI Regulation 7/1973 concering Monitoring of

Distribution, Storage and Use of Pesticide

No gaps identified in the

requirements, but the

enforcement of the

implementation should be

strengthened.




WBG General EHS Guidelines

(Annex 18).



integrated pest

management (IPM) or

integrated vector

management (IVM)

approaches using combined

or multiple tactics.

- Ministry of Health Regulation

258/MENKES/PER/III/1992 concerning Health

Requirements for Managing Pesticide.

- Ministry of Agriculture Regulation

107/Permentan/SR.140/9/2014 concerning

Supervision of Pesticide Use.

- Etc.

ESS4 Community Health and Safety

Community health and

safety


Borrower will evaluate the

risks and impacts of the

project on the health and

safety of the affected

communities during the

project life cycle, including

those who, because of their

particular circumstances,

may be vulnerable.


P.26/MENLHK/SETJEN/KUM.1/7/2018 specifically

mentioned community health as the risks and impacts

to be evaluated from a proposed activity.

Community safety is not

included in the scope of

impact assessment.





(Annex 18).

Security personnel ESS4 Paragraph 24: When

the Borrower retains direct

or contracted workers to

provide security to

safeguard its personnel and

property, it will assess risks

posed by these security

arrangements to those

within and outside the

project site.

ESS4 Annex 1 Safety of

Dams

The dam safety

requirements set out in this

Annex apply to new dams

and existing dams and

dams under construction

(DUC)

Government of Indonesia Regulation No. 37/2010

concerning Dam Safety.

No gaps identified. SSF ESMF covers this in

Chapter 4. The requirements

of the Standards will be

included in the borrower legal

agreements, and the activities

and outputs, although unlikely,



will be monitored under the

ESMF.

ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement

Applicable laws and regulations in Indonesia have covered main topics of the ESS5 however, some gaps are identified in terms of detail explanations and arrangements of the

issues.

Land acquisition and

appraisal of assets

Compensation for asset with

full replacement cost.

Involuntary resettlement

must be avoided or

minimized as much as

possible by considering

various alternative options.

Law No. 2/2012 regulates compensation of assets

based on the appraisal made by a licensed/independent

appraiser in accordance to market prices.

The regulation does not stipulate in detail how the

resettlement is performed (tend to provide

compensation in cash); not regulating the

recovery/improvement of income, compensation is

provided only to the land/building owner.

No gaps for replacement

value of the affected asset.

Not specifying compensation

for persons who get benefit

from the affected land such

as encroachers,

sharecroppers, renters,

squatters and not arranging

the requirements for

livelihood restoration program

for project affected people.

The ESMF regulates the asset

compensation value based on

Indonesian regulation.

The ESMF (Annex 15,

LARPF/PF) regulates planning

mitigations for persons

affected by land acquisition,

resettlement including

economic displacement and

access restrictions.

Sustainable

development program

Different modes of

compensation other than

cash, particularly relocation

and land-for-land, are not

sufficiently elaborated,

particularly on aspects related

to livelihoods restoration

measures.

The LARAP will be required to

provide sufficient resources for

development of resettlement

sites, where necessary;

together with provision of

relocation assistance and for

planning and implementation

of income rehabilitation

measures for those affected

by loss of incomes and

livelihood.

Direct and indirect

impacts

Adverse social and

economic impacts due to

restrictions of access and

land use are not explicitly

covered under the Law

2/2012.

ESMF will cover provisions of addressing impacts due

to restrictions on land use and access to natural

resources.

Indirect impacts due to land acquisition will be covered

by Environment and Social Management Plan for the

program.

The regulation does not

specifically mention natural

habitat and critical natural

habitat as per ESS6.

Through the Screening

Process and impact

management planning (SSF

ESMF Annex 3 and 4), critical

natural habitats and protected

areas will be identified, and



No gaps identified. These

safeguards instruments

contain specific mechanisms

for oversight of environmental

and social aspects of specific

programs, grievance redress

mechanisms, and reporting

compliance based on self-

assessments and

independent audits.

the potential for significant

conversion or degradation of

these areas, and mitigation

options, assessed. If the

subproject is not consistent

with the ESS or GOI laws and

regulations, the subproject will

not be funded.

The ESMF developed under the program will therefore build on the existing country systems and ensure that any gaps against the World Bank’s safeguards policies are addressed.

Associated facilities and

legacy issues

Not covered. Legacy issues and associated facilities need to be

assessed and due diligence carried out as necessary.



enforcement of the


strengthened.





(Annex 18).

Replacement costs No gaps. Independent

appraisal team determines

compensation for loss of

physical and non-physical

assets and

premium/solatium. .

ESMF for the program and LARAP for respective

project/subproject will provide entitlement matrix for the

PAPs.



capacity of the stakeholders

performing the roles in the

natural resources’

management should be

improved.

SSF ESMF Chapter 6 Section

6.3 provides capacity building

plan for the PMU and PIU,

including the facilitators and

the community on the

implementation of Social

Forestry.

Livelihoods Restoration - The Law 2/2012 and its

implementing regulations do

not elaborate the option and

implementation of assistance

and livelihood restoration.

Livelihood restoration

incorporated into project

design. Project authorities will

be required to provide

sufficient resources for

planning and implementation



of livelihood restoration

measures.

Assistance to Physically

Displaced

Assistance to displaced

households due to land

acquisition are not covered

by Law 2/2012 and its

implementation regulations

(Perpres 71/2012).

ESMF for the program to include details on the type of

resettlement assistance to displaced households.

There are gaps. The social

and environmental

assessment does not

accommodate the presence

of IP and impact towards IP.

The SSF ESMF and IPPF

(Annex 16) provides (i)

screening that includes the

presence of IP based on the

List of Indigenous Peoples

published by the Ministry of

Social Affairs in 2010

compiled by the World Bank

using EGiMap and (ii) impact

assessment, consultation and

planning to include FPIC and

community agreements

(Annex 10 and 12), with

development of IPP when IP

are affected by the subproject

activity.

Compensation for loss

of income sources or

means of livelihood

Legal provisions are deficient

to recognize entitlements for

loss of incomes and means of

livelihood due to land

acquisition.

ESMF to provide entitlements

for loss of incomes and

livelihood.

Support for affected

persons who have no

recognizable legal right

or claim to the land they

are occupying

Perpres 62/2018 does

require to provide

compensation and

assistance for those who do

not own the land but have

occupied or utilized the land

with a set of criteria

ESMF will specify the eligibility criteria and entitlement

for each category of project-affected persons (PAPs),

including people occupying land informally.

Gaps are in the enforcement

of the regulation and the

inclusion of risks and impacts

to cultural heritage from

project activities in the


impact assessment of sub-

projects.

The SSF ESMF provides

chance find procedure (for

unexpected discovery) of

cultural heritage (Annex 7)

and the requirement to include

risks and impacts to cultural

heritage from project activities.



Land for land Law 2/2012 and

Implementation Regulations

(Perpres 71/2012) do not

provide details on the

procedures for replacement

land. Further, the provision in

Para 5, Article 77 and Para 4

of Article 78 (Perpres

71/2012) are in contradiction

of Bank’s Policy 4.12 that

requires completion of

relocation arrangements

before affected households

are displaced.

The project is not expected to

cause livelihoods impacts and

economic displacement

resulting from land acquisition

activities under both

components. ESMF for the

program and the guideline for

land acquisition and

resettlement elaborates

requirement for resettlement

/land-for-land option including

the completion of relocation

arrangements prior to PAPs

displacement.

Compensation options Provision of replacement land

is not sufficiently elaborated.

Provisions in ESMF for the

project will provide

requirements of compensation

options, eligibility criteria, and

entitlements for different PAP

categories.

Eligibility for Indigenous

Peoples

Law 2/2012 does not specify

any groups including

Indigenous Peoples (IPs).

The Implementation

Regulations (Perpres

71/2012) do not specify any

requirement of conducting

social assessment and

consultation with IP

communities and free, prior

and informed consent (FPIC).

ESMF for the program will

include provisions for

recognition of affected IPs

communities, conducting

social assessments,

consultation and FPIC

requirements, and appropriate

compensation and assistance

consistent with the

requirements of e ESS 7.

Forced eviction Not explicitly covered.

Ownership rights to land and

its associated properties will

ESMF outlines protocols for

involuntary resettlement. The

project will adopt community



be relinquished upon

compensation payments or

court decisions.

consultative and participatory

driven approaches in

relocation activities due to

post disaster displacement,

preventative resettlement.

Host community Host communities are not

explicitly covered in the Law

2/2012 and its

Implementation Regulations

(Perpres 71/2012).

ESMF for the program will

specify the need for

consultation with host

communities and identification

and mitigation of any adverse

impacts due to relocation of

PAPs.

Resettlement Planning

Instruments

The scope of Land

Acquisition Plan does not

clearly include identification of

vulnerable groups, public

consultation and participation,

and monitoring and

evaluation requirements.

Further, the Plan does not

include relocation assistance

and livelihood restoration,

where necessary.

The Land Acquisition Plan

does not fully cover elements

and details of those in the

LARAP. Timing of the

preparation of the Land

Acquisition Plan with results

of inventory of affected land

plots should be advanced to

the planning stage.

The format and contents of

Land Acquisition Plan needs

to be upgraded to make it

equivalent to the LARAP at

the planning / preparation

stage. Details on the scope,

format and contents of LARAP

for project/ suboject to be

specified in the ESMF.

Costing Although Law 2/2012 requires

land acquisition plans to

The LARAP for the project is

required to ensure inclusion of



include estimated costs for

land acquisition and/or

resettlement, it does not

include the costs for providing

assistance and livelihood

restorations.

all costs of land acquisition

and relocation of disaster

displaced people, including

livelihood restoration

measures.

Disclosure and

engagement

Law 2/2012 and

implementation regulations

require dissemination of

information on affected land

and other assets, and

applicable compensation

amounts to affected

households. Public

announcement of inventory

results is required at the

ward/village government

offices, sub-district offices

and at the place where land

acquisition is conducted.

However, such disclosure is

often available at specific

venues which may not be

accessible to the wider

audience.

All documents will need to be

disclosed to public in suitable

form to meet the Bank’s

disclosure requirements.

Grievance Mechanism Provisions of the Law No.

2/2012 and implementation

regulations (Perpres 71/2012)

have elaborate and time-

bound procedures for filing

complaints by affected

households and process to

address complaints and

grievances. It is however,

does not explicitly require due

The project’s FGRM require

robust documentation and

communication of grievances

related to project activities.



documentation of of

grievances.

Monitoring and

Evaluation

The Law 2/2012 does not

provide for external

monitoring of resettlement

implementation and post-

implementation evaluation to

assess whether the objectives

of the resettlement plan have

been achieved. Further it is

deficient in providing details

on objectives of evaluation.

As per-the ESCP, an

independent monitor will be

mobilized to provide third-

party assessments of the

implementation of the LARAP.

ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources

Conservation of

biodiversity and habitats

ESS6 Paragraph 14: This

ESS requires a

differentiated risk

management approach to

habitats based on their

sensitivity and values. This

ESS addresses all habitats,

categorized as ‘modified

habitat’, ‘natural habitat’,

and ‘critical habitat’, along

with ‘legally protected and

internationally and regionally

recognized areas of

biodiversity value’ which

may encompass habitat in

any or all of these

categories.

The Bank does not support

projects that, in the Bank’s

opinion, involve the

significant conversion or

Ministry of Environment Regulation no 16/2010

Appendix IV about UKL UPL preparation section B.4.a

stipulated that any project proposal shall be rejected if

the project is not in line with the regional/district spatial

planning and with the Presidential Instruction on

10/2011 about Forestry Permit/Environmental Permit

moratorium at specific area (in primary forest, wetlands

and other sensitive area etc.).

There are a number of existing certification schemes

that can be relied upon for specific ER activities, such

as the Indonesian Ecolabel Institute (Lembaga Ekolabel

Indonesia/LEI), the Forest Stewardship Council (FSC),

and the Verification System of Timber Legality (SVLK)

standards for ensuring sustainable forest management

practices. In the oil palm sector, the Roundtable for

Sustainable Palm Oil (RSPO) and the Indonesian

Sustainable Palm Oil (ISPO) set out compliance

standards for the management of environmental and

social aspects along oil palm value chains.

The regulation does not

specifically mention natural

habitat and critical natural

habitat as per ESS6.

No gaps identified. These

safeguards instruments

contain specific mechanisms

for oversight of environmental

and social aspects of specific

programs, grievance redress

mechanisms, and reporting

compliance based on self-

assessments and

independent audits.

Through the Screening

Process and impact

management planning (SSF

ESMF Annex 3 and 4), critical

natural habitats and protected

areas will be identified, and

the potential for significant

conversion or degradation of

these areas, and mitigation

options, assessed. If the

subproject is not consistent

with the ESS or GOI laws and

regulations, the subproject will

not be funded.

The ESMF developed under the program will therefore build on the existing country systems and ensure that any gaps against the World Bank’s safeguards policies are addressed.



degradation of critical

natural habitats.

Invasive alien species ESS6 Paragraph 29: The

Borrower will not

intentionally introduce any

new alien species (not

currently established in the

country or region of the

project) unless this is carried

out in accordance with the

existing regulatory

framework for such

introduction.

Ministry of Environment and Forestry Regulation

P.94/MENLHK/SETJEN/KUM.1/12/2016 concerning

Invasive Species

Ministry of Environment and Forestry Regulation


Guidelines for Planting for the Borrow to Use Permit

Holder for River Basin Rehabilitation states that the

replanting activities should only use native plants.

Directorate General of Natural Resources and

Ecosystem Conservation P.12/KSDAE-Set/2015

concerning Planting and Enrichment Guideline for

Terrestrial Ecosystem Rehabilitation in the Nature

Reserve and Conservation Area prohibits the

introduction of invasive species.



enforcement of the


strengthened.





(Annex 18).

Sustainable

management of living

natural resources


Borrower with projects

involving primary production

and harvesting of living

natural resources will

assess the overall

sustainability of these

activities, as well as their

potential impacts on local,

nearby or ecologically linked

habitats, biodiversity and

communities, including

Indigenous Peoples.

There are regulations concerning sustainable

management of living natural resources:

- GOI Regulation 42/2008 concerning Water

Resources Management

- GOI Regulation 6/2007 concerning Forest

Management



Social Forestry



capacity of the stakeholders

performing the roles in the

natural resources’

management should be

improved.

SSF ESMF Chapter 6 Section

6.3 provides capacity building

plan for the PMU and PIU,

including the facilitators and

the community on the

implementation of Social

Forestry.

ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities

Impact on indigenous

peoples

OP 4.10 Indigenous

peoples. (i) Identify the

presence of indigenous

There are no specific regulations on the management of

impacts towards IP. The existing regulations only

recognize the presence of IP.

There are gaps. The social

and environmental

assessment does not

The SSF ESMF and IPPF

(Annex 16) provides (i)

screening that includes the



peoples; (ii) recognition of

the right to obtain

information at the beginning

of the sub-project.

accommodate the presence

of IP and impact towards IP.

presence of IP based on the

List of Indigenous Peoples

published by the Ministry of

Social Affairs in 2010

compiled by the World Bank

using EGiMap and (ii) impact

assessment, consultation and

planning to include FPIC and

community agreements

(Annex 10 and 12), with

development of IPP when IP

are affected by the subproject

activity.

ESS8 Cultural Heritage

Impacts on cultural

heritage

ESS8 sets out provisions on


heritage from project

activities. There is

requirement to identify and

mitigate potential impact

towards tangible and

intangible cultural heritage

for each sub-project.

Law No. 11/2010 about Cultural Heritage states that

cultural heritage needs to be preserved and protected.

Gaps are in the enforcement

of the regulation and the

inclusion of risks and impacts

to cultural heritage from

project activities in the


impact assessment of sub-

projects.

The SSF ESMF provides

chance find procedure (for

unexpected discovery) of

cultural heritage (Annex 7)

and the requirement to include


heritage from project activities.

1

5 Analysis and Management of Environmental and Social Impacts

The ESMF is an instrument used to assess the impact of a series of activities performed in certain project. The impact cannot be determined in detail when project activities have been identified in detail. ESMF sets the principles, rules, guidance, instruments, and procedures to assess environmental and social impact. This document contains steps and plans to reduce, mitigate, and/or balance poor impact, approximate rules or guidance, and information regarding institutions or those responsible for managing the project’s impact.

When this project commenced, as stated in the Aide Memoire between Government of Indonesia and the World Bank in February 2018, this SSF Project was declared as Category B or estimated as not creating significant environmental and social impact, but because several safeguard policies were triggered and require special review of local context and risks, the ESMF is required, along with other instruments per the World Bank Safeguards Operational Policies and the legislation of the Republic of Indonesia. During the later phases of preparation for the project, it the World Bank’s new Environmental and Social Framework/ESF came into effect, requiring this document and the project’s risk level analysis be built based on the new system.

5.1 Summary of Environmental and Social Risks and Impacts The SSF project aims to increase the community's access and management rights to

forest land in selected priority areas. Therefore, the overall project is designed to have a positive impact. Assessment of the social, environmental, legal and institutional context and potential impacts is provided in the Social Forestry Assessment and design documents prepared as part of the project development.

However, there are still potential negative environmental and social impacts of the project activities, particularly related to the ground-level activities under Component 2. These require mitigation efforts, as described below (Table 6) according to the Environmental and Social Standards (ESS) and by project component (Table 7), with links to mitigation measures and relevant annexes to this ESMF.

Policy and institutional risk and issues are addressed through project design, to prevent negative impacts, with Component 1 specifically supporting the MoEF in developing and harmonizing the relevant policies, regulations and procedures to expedite and facilitate the implementation of the SFP, and strengthen institutional capacities. Furthermore, it will also support mainstreaming of social forestry objectives in other relevant sectoral policies and programs. Key activities include: (i) support the development of subnational level policies and regulations at the provincial, district and village levels which are consistent with SFP objectives; (ii) support the village and provincial development planning process and associated policies and guidelines to include social forestry; (iii) strengthen the fiscal policy framework for decentralized fiscal transfers to facilitate the incorporation of social forestry as one of the key activities eligible for receiving future financing from national village funding instruments (such as the Revenue Sharing Fund for Reforestation (DBH DR ) and Village Fund)9; (iv) strengthen the policy and regulatory framework consistent with the One Map and Agrarian Reform policies in order to maximize synergy and impact; and (v) develop the method/regulations

9 According to Ministry of Finance (MoF), Dana Bagi Hasil/Profit Sharing Fund (DBH) is fund originated from State Budget (APBN) that allocated to regions based on a determined percentage to finance regions needs in executing decentralization. While Village Fund, according to Government Regulation Nr. 60/2014 on Village Fund Originated from State Budget, Village fund is fund originated from state budget that allocated for Village which being transferred through Regional Budget (AOBD) to finance regional governance, development, community development, and community empowerment.


required to officially guide the preparation of sustainable forest management plans, the approval process for these plans by the appropriate authorities and the supervision and monitoring procedures for the implementation of these management plans.

Related to this, there is also a sub-component is to develop the institutional capacity at the appropriate levels of government to promote the SFP activities consistent with the proposed project objectives. It will allow for the sustainable management of the forestry resources by the users while providing income generating opportunities. Key activities include: (i) establishment of provincial Social Forestry Task Forces consistent with Ministerial Decree no. 83; (ii) support the Social Forestry Task Forces and MoEF Conflict Units in five regions to ensure that conflicts and grievances are addressed expeditiously and consistently with government’s laws and regulations; (iii) support the establishment of village institutions (lembaga desa) and farmers groups, which are critical elements in the GOI’s various social forestry schemes; (iv) strengthen the institutional framework, both in terms of institutional arrangements and implementation capacity, to expedite the issuance of the appropriate land tenure and use rights to village associations, farmers groups and communities; (v) develop the capacity within government institutions to review, recommend and approve the management plans and then supervise (and, if necessary, control), the plan implementation; and (vi) strengthen existing technical assistance support system to forest-dependent communities to promote livelihood options that protect forest sustainability. These capacity strengthening activities will be practically implemented in part through the Component 2 actions on the ground, where support for SF permitting, including boundary demarcation, business planning and social forestry livelihood activities are delivered.

Impacts anticipated in relation to those activities are outlined in the table below. Component 1 policy development activities may however also involve potential environmental and social risks and impacts, discussed below and in Table 7. In the event that policy related activities differ from those outlined here, the Technical Assistance and the Environmental and Social Framework OESRC Advisory Note: May 21, 2019 should be referred to for possible additional mitigation effort.


Table 6

Potential Environmental and Social Impacts of SSF Project By ESS

ESS Potential Positive Impacts Potential Negative Impacts

ESS2 Labour and working conditions

SF policy and its activities are intended to support creation of sustainable livelihoods, and will involve increased employment opportunities in SF areas. ECOP and site-specific ESMPs will clearly analyse risks with respect to labour and working conditions and describe measures to address these risks. It is likely, that in many Social Forestry groups, these types of analyses and standards currently do not exist. The project thus has the potential to generally increase employment and related incomes, as well as improving people’s awareness about risks and best practices and to specifically improve the conditions of people engaged in the forest management and infrastructure development activities.

Although Indonesia’s labour laws are robust, they are not always well known or monitored, especially in rural and remote areas. The potential for poor Occupational Health and Safety (OHS) procedures during the construction and operation of small-scale infrastructure may therefore lead to detrimental effects on the health of workers. This also includes possible injuries from forest and agro-forestry management activities, e.g. accidents from using harvesting equipment and other tools. Potential for involvement of minors / children in local labour activities also exists if appropriate information and monitoring are not in place.

All project related accidents wil be reported using the reporting tool in Annex 21.

ESS3 Resource efficiency and pollution prevention and management

The risk of erosion, flash floods or landslides should be reduced by the tree plantings. The effect on fixing atmospheric carbon dioxide is not expected to be significant in the Social Forest areas directly supported by the programme.

Increasing economic benefits from forestry and agro-forestry production are expected incentivise community members to protect forest areas from encroachment or transformation into other land use types. This in turn is expected to contribute to reduced carbon emissions resulting from the

The implementation of sylvicultural and agro-forestry measures may have negative environmental impacts resulting from business plans and production techniques that do not adequately consider environmental issues. Impacts may include increased rates of erosion from agro-forestry production techniques that are not soil conserving. An increased and uncontrolled use of pesticides and fertilizers may have negative impacts on water quality and in turn on aquatic and terrestrial biology. Environmental contamination from fertilizers can occur during its handling and application and from washing equipment contaminated with pesticides.


unsustainable conversion of forested land. Moreover, it will help to stabilise land use patterns. The expected reduction of unwanted forest conversion will contribute to improved watershed management and reduced soil erosion.

The construction and operation of roads, buildings, and other infrastructure may increase soil erosion rates and lead to the pollution of water bodies.

ESS4 Community health and safety

Health and safety impacts are considered negligible. Apart from avoiding and/or mitigating potential negative impacts on community health and safety, the development and use of ECOP and ESMPs is expected to increase overall awareness on and knowledge of best practices with regard to these aspects. This in turn is likely to improve the conditions of participating communities and their neighbouring communities.

The production of organic fertilizer as a potential activity or side-product of other activities to be supported, is expected to incentivise the separation of organic and non-organic waste which in turn can have positive impacts on the health and safety of people and the environment alike. Moreover, the production of organic fertilizer reduces the dependency on non-organic fertilizer.

Community health may potentially be negatively impacted if not carefully considered in the design, construction, and operation of forestry and agro-forestry activities, and small-scale infrastructure in the village/sub district level. Potential risks in this category include noise disturbances, the pollution of drinking water sources, and exposure to fertilizers, pesticides, and hazardous waste. Waste generated during construction and operation may pollute the environment and negatively impact the health of communities.

ESS5 Land acquisition, restrictions on land use and involuntary resettlement

Communities that have obtained a Social Forestry license receive legal certainty that they are allowed to use the licensed forest area (provided that the forest function is not changed). It is expected that this legal certainty will lead communities to protect their forest area, sustainably manage it for their own benefit, and prevent illegal encroachment.

The project does not involve mapping of village boundaries, however in demarcating forest areas for Social Forestry

The project will involve neither the forced resettlement nor the physical relocation of people on a large scale, nor the compulsory acquisition of land per se, however in sub-projects there are potential cases where these issues may be present. The project Negative List is to screen out potential large scale land acquisition or resettlement at the sub-project level but with scope for these on a minor scale, with necessary safeguard caveats. Land acquisition ouside the forest area may be proposed to support a social forestry enterprise, for example. Relocation of community livelihood activities or infrastructure in the PIAPS area may occur. Similarly, restrictions on the use of forest and land resources may


purposes, and activities supporting the establishment of village associations for social forestry enterprise/livelihood purposes, may give rise to localised social issues that need to be resolved.

be imposed as part of the forest groups’ by-laws. If not carefully planned, these access restrictions may lead to a damage or loss of livelihoods for community members and non-community members alike.

In some cases, land tenure issues and conflicts surrounding the licensed state forest areas may exist at the outset of the project activities. Reasons for this may be (i) land tenure issues that have developed after the license has been granted; (ii) affected communities or people were not aware that a license has been granted to a neighbouring community; or (iii) affected people of communities do not have access to—or are not aware about—existing grievance mechanisms. These tenure issues need to be addressed at project’s inception phase and may lead to groups or areas being excluded from project support.

Permanent and/or temporary losses of small areas of land currently used for other purposes may occur due to rehabilitation and/or construction of rural infrastructure and/or development of facilities of Social Forestry businesses/enterprises, e.g. eco-tourism facilities, processing and packaging facilities, and other small-scale village infrastructure.

The combined RPF/PF has been developed to ensure that potential land tenure/access and displacement and access restriction issues are addressed early during project implementation, and that the planning and implementation process is participatory, inclusive, and transparent.

ESS6 Biodiversity conservation and sustainable

The impacts of the Social Forests on the biodiversity or as a habitat for endangered species will be somehow positive, but

Environmental degradation, unsustainable use of forest resources and/or reduction of biodiversity may result from poor land use planning/zoning and/or unsustainable forestry or agro-forestry


management of living natural resources

not really significant since mostly commercial plants will be cultivated.

practices such as an overharvesting of forest resources or an increased use of pesticides.

The sylvicultural and agro-forestry measures may include land-based forest management activities (e.g. the establishment of plantations, reforestation of areas, or the establishment of nurseries) which are implemented on land that is currently occupied by natural vegetation.

If not carefully planned, the construction and operation of small-scale infrastructure measures may lead to a loss of biodiversity and/or the fragmentation of natural habitats. The implementation of viable business schemes may include the construction of small-scale infrastructure (e.g. eco-tourism facilities, processing facilities, administrative buildings) on land that is already in use for other purposes. Moreover, negative environmental impacts may arise during construction through the disturbance of soil and the removal of vegetation.

Each sub-project should have an ESMP prepared specifics for the types of activity. Proposed sub-projects are to be screened first against a ‘negative list’ to exclude actitivites that significantly reduces biodiversity or forest ecosystem or damages natural habitat within the forest, then site specific baseline data and impact assessments will be prepared completed, along with consultations to develop a mitigation plan in line with ESS6 requirements.

WBG General EHS and Industry Sector Guidelines, Environmental Code of Practices and Code of Practices for Village/District Development Planning and General Guideline of High Conservation Value (HCV) have been provided as references.


ESS7 Indigenous peoples

The project activities involve areas and groups that may be formally recognized as adat peoples or not officially recognized but still meeting World Bank description of indigenous peoples (per ESS7) and therefore approached and included in the project safeguard processes. The support to forestry and agro-forestry based activities of Adat communities will lead to an improvement of their socio-economic circumstances and livelihoods. Moreover, extensive institutional development support and capacity building efforts will improve consultation processes and help in setting up community-based decision-making structures and the joint development of annual work plans, budget plans and business plans. This is expected to increase the overall capacities of Adat communities. Through project involvement, including training and sensitization of other actors (such as SFWG), the recognition of indigenous peoples is expected to also increase the probability of them attaining formal recognition if they choose to seek it. Through Component 1 policy strengthening activities, the Project may seek to influence MOEF approach to the groups that are not formally recognized, including outside the project locations.

The proposed project locations are home to numerous recognised Adat communities and other ethnic groups. Because of their potentially disadvantaged position, Adat communities may have limited capacities to establish social forestry enterprises, for example NTFP processing and/or ecotourism facilities. This may be due to procedural, legal or administrative obstacles and may lead to them not fully benefitting from the Project.

The boundary demarcation process as part of the development of FMPs may also ignore the claims and rights of Adat communities, or exacerbate conflict, if not properly handled.

Procedures to ensure Free, Prior and Informed Consent (FPIC) and a participatory planning and implementation process are outlined in the attached Annex 10, and in the SEP (Annex 17) and IPPF (Annex 16). Guidelines. An Indigenous Peoples Plan (IPP) is to be prepared for each site where indigenous pepels are involved in or impacted by project activities.

ESS8 Cultural heritage

Identification of cultural heritage as part of sub-project planning, as well as use of chance finds procedures within the safeguards training approach to build capacities of MoEF and local institutions and communities are expected to raise awareness of cultural heritage as a community asset. Forestry-based business schemes such as the development of eco-tourism and Payment for Ecosystem Services (PES) schemes, may have positive impacts on cultural heritage sites as they increase their visibility and provide funds for their maintenance.

The project does not intend to affect any known PCRs, e.g. historical, cultural, and/or archaeological, paleontological, religious, or unique natural values of national and/or regional cultural importance). However, as the project area covers ethnic minority groups, there could be a limited number of graves, village cemeteries, and/or communal properties in spiritual forests in locations of subproject.

The development of forest based enterprises may lead to changes in use of forest areas (for example for plantation, extraction, influx of tourists


and other visitors who introduce cultural norms that are in conflict with local customs, traditions, and norms, so impacts on heritage are anticipated but not considered likely significant.

ESS10 Stakeholder engagement and information disclosure

Stakeholder engagement, awareness and participation of stakeholders through the project activities is expected to yield positive impacts. The support to the implementation of appropriate Social Forestry schemes will involve institutional development support and capacity building efforts. This will in turn help communities to set up and strengthen community-based decision-making structures. The support to the implementation of Social Forestry schemes will also strengthen the rights of communities for whom forest resources are a source of livelihood. Strengthened community organizations, farmer management units and social forestry working group (pokja)improving their position to participate in wider social, economic, environmental and political discourses.

While strengthening the rights of Social Forestry groups improves their legal certainty and incentivises the protection of forest areas from encroachment and unsustainable use, social exclusion and elite capture may occur within communities and Social Forestry groups leading to an exclusion of vulnerable community members, an unfair sharing of benefits of forestry resources, and to supporting an entrenchment of social inequality. Unfair sharing of project benefits may also occur if the stakeholder access and balance of power is not addressed through project implementation.

The ESMF, SEP and IPPF have been developed to ensure that the planning and implementation process is participatory, inclusive, and transparent.

1

5.2 Specific Project Activities, Impacts and Environmental and Social Instruments

Table 7 below provides an outline of the activities that will be undertaken under each of the project componets, its potential environmental and social impacts and mitigation efforts available under the GoI legal systems.

Table 7 Potential Environmental and Social Impacts of SSF Project Component Activities and Mitigations

No. Activity Negative Impact

Social and/or Environmental) Mitigation

Component 1 Policies and Institutional Strengthening to Support Social Forestry

1.1 Policies and Regulations

Support village and district development planning and relevant policies and guidelines;

Strengthen policy framework for sustainable funding (e.g. decentralized fiscal transfer, microfinance)

Strengthen policies framework for community-based enterprises.

(Social) In order to issue or strengthen policies, policies and regulations as the final products may benefit one side only or exclude indigenous peoples and local communities, and may gender bias and ignore social inclusion principles

Additionally, policies and regulations that are issued risk being misaligned with the existing ones on national and regional levels; they have the potential to cause other problems (inter-agencies, national-regional, etc.) or be effectively unimplementable

The potential negative impacts of these activities related to ESS2-ESS10 are to be used as references in developing mitigation plans, while the potential positive impacts should be strengthened.

Referring to Law No. 10 of 2004 concerning Establishment of Laws in conjunction with Law No. 12 of 2011 concerning Establishment of Laws, it is clearly stated that Community has the right to provide verbal and/or written input for policies establishment. Verbal and/or written input can be provided through public consultation in the form of public hearing, work visit, dissemination of information, seminars, workshops, and/or discussions. Additionally, Law No. 14/2008 concerning Public Information Disclosure mandates participation in development, implementation, and monitoring. This is the the main reference, by which to mitigate the potential impact, all draft policies and regulations must be consulted with all related parties, particularly the community and the local government agencies.

Public consultation for every policy and regulation issued at both national and regional levels is to ensure fair sharing of benefits and that they do not neglect indigenous peoples and local communities and include a gender perspective and social inclusion principles.

PMU has to have support from experts in order to prepare additional documents (in simple language and, if possible, includes images/infographics as well as local languages) to ensure the policies and regulations being issued/strengthened have covered the issues raised by communities and vulnerable groups. The Environmental Codes of Practices (Annex 5) for


Village/District Development Planning could be used as reference.

(Social) Public consultation of policies that will be issued/strengthened has the potential to be meaningless if it does not involve the appropriate stakeholders (elites only, does not include women, indigenous peoples and local communities), or is not conducted appropriately (ensure the community invited to the consultation have the material to be discussed, consultation venue is neutral), etc.

Use National Forestry Board Public Consultation Guidelines that regulates the importance of public consultation, prerequisites for public consultation, principles of public consultation, methods and techniques for public consultation, implementation process, and time and place for public consultation, so it becomes a fruitful discussion. Strengthen PIAPS verification guidelines to include more explicit identification of community users, existing ad potential conflict in proposed permit areas (IUPHKm).

Additionally, a Community Participation Framework is provided (Annex 8), along with an Indigenous Peoples Planning Framework (Annex 16) and Stakeholder Engagment Plan (Annex 17) to supplement public consultation guidelines mentioned above. The instrument is used as a supplement to conduct fruitful public consultation.

Policies and regulations that are issued have the potential to be not aligned with the existing ones at national and regional levels; they have the potential to cause other problems (inter-agencies, national-regional, etc.), be unimplementable, or even cause negative impacts on the environment.

Public consultations with stakeholders at national and regional levels serve as mitigation measures and is part of procedures for aligning policies and regulations between agencies/sectors.

In addition, input on social forestry are provided to assist in drafting regional regulation (including Regional Mid-Term Development Plan or RPJMD) and Village Mid-Term Development Plan or RPJMDes) that can be used to issue regional development policies to strengthen social forestry.

1.2 Institutional Enhancement

Additional support for Social Forestry Working Unit operations;

(Social) To strengthen Working Group on Social Forestry (Pokja PS), it is possible that some challenges will arise due to conflicts between Working Group on Social Forestry (Pokja PPS) and related Social Forestry stakeholders at the regional level (such as Regional Government, Forest Management Unit, NGO, Indigenous Peoples or Local Communities), as a result of

Ensure that dialogues take place between Social Forestry related stakeholders, in which it is regulated in Stakeholders Engagement Plan (Annex 17).

Grievance Redress Mechanism/GRM which is formulated in this ESMF document (with supplemental documents as listed in Annex 14) and technical assistance for operations or capacity building for various parties to redress grievance and disputes at the regional level, designed to help resolve


different perception and expectations.

conflicts between stakeholders and Working Group on Social Forestry (Pokja PS).

Additional assistance for grievance redress and conflict resolution;

(Social) Support for the conflict resolution mechanism and implementation of this and the grievance redress have the potential to not meet six important characteristics (legitimate, accessible, predictable, equitable, rights-compatible, and transparent) and three sufficient requirements (authority, personal skill, and independency) to be effective.

To use Regulation of the Ministry of Environment and Forestry No. P84/MenLHK-Setjen/2015 concerning Tenurial Conflict Management within Forest Estate in conjunction with Regulation of Director General of SFEP No. 4/PSKL/SET/PSKL.1/4/2016 concerning Guidelines for Mediation of Social and Tenurial Conflict in Forest Area in conjunction with Regulation of Director General of SFEP No.6/2016 concerning Guidelines on Forest Estate Social Tenurial Conflict Mediation that refers to the Regulation of Supreme Court of the Republic of Indonesia No. 1 of 2016 concerning Mediation Procedures in Court (see Annex 13 regarding MoEF Tenurial Conflict Resolution Mechanism).

Presidential Regulation No. 88 of 2017 concerning Land Control Settlements within Forest Estate.

Grievance Redress Mechanism/GRM which is formulated in this ESMF document (with supplemental documents as listed in Annex 14) and its operational technical assistance can help resolve conflicts.

Ensure capacity building of implementers in resolving conflicts and grievance at national and site levels, built into project design.

To support the establishment of village institutions, farmers groups, and customary institutions;

To strengthen institutional framework to accelerate land use right issuance for village institution, farmers group, and customary institution;

(Social) Potentially inadequate participation from the established institutions because of the following things:

Only involving elites, lack of access for women and vulnerable groups to participate

Minimum amount of prior information therefore women and vulnerable groups are hesitant to participate

Standard consultation approaches may not be sufficient to meet requirements to engage certain groups, particularly in regions with a high level of illiteracy, difficult access, rec

Strengthen PIAPS verification guidelines to include more explicit identification of community users, existing ad potential conflict in proposed permit areas (IUPHKm).

Use several instruments provided in this document, such as Community Participation Framework (Annex 8), Guidelines on Gender Mainstreaming in Social Forestry (annex 9), Guidelines on FPIC (Annex 10), Indigenous Peoples Planning Framework (Annex 16).

Ensure capacity building for community and facilitators related to the instruments above, so there is an understanding of how to conduct activities within the context of Social Forestry with gender equality and social inclusion principles.


Lack of facilitator and decision-maker knowledge about indigenous peoples and local communities’ characteristics, in general and particular at the project location/site level.

Develop materials related to SF using simple language, and if possible, using images/infographics and in local language as supporting elements.

Involve FMU facilitators and SF-WG in the development of the Environmental and Social Management Plan (ESMP) for each project location. ESMP to baseline data on local conditions and issues, so those involved will become more knowledgeable.

(Social) The village institutions are established for SF may be weak and not get formal support from the village.

Referring to Village Law No. 6 of 2014, there is a need to develop guidelines regarding institutional formalization within government process and development to strengthen relevant institutions.

FMU facilitators to be trained on aspects of institutional strengthening, and to provide distinct briefings to inform and engage village heads to support SF institutions.

To strengthen existing technical assistance (for example community facilitators) for forest-dependent communities;

(Social) In relation to the existing Forestry Facilitators and Bakti Rimbawan, there is some concern that future facilitation may not be conducted well due to them having different core duties and functions (tupoksi) and paradigms with those of Social Forestry.

In addition, there is some concern that people recruited to be SF facilitators to strengthen technical assistance for the community may not be accustomed to working as community facilitators in the context of Social Forestry.

Ensure the use of proper training techniques and learning modules to prepare social forestry facilitators, developed by Human Resources Counseling and Development Agency or BP2SDM.

Polish or improve the related modules so facilitators can better conduct their facilitation roles within the SF context.

1.3 Management of Knowledge and Technical Assistance

To provide technical assistance and knowledge management

(Social) There is a possibility of building an ineffective system during the development of Information System and SF Knowledge Management.

Develop materials in simple language, and if possible, use many images/infographics to support it.

Develop a user- friendly information system for access on mobile phones.

Component 2 Development and Strengthening of Social Forestry


2.1 Management Plan

(i) To support the mechanism for land use right transfer to the community

(Environmental) There is a possibility that the mechanism for land use right transfer allows land-based forest management activities to be carried out by the community on the land with natural vegetation.

(Social) There is some concern that in issuing SF permit, land use rights will be granted to the wrong people (mismatch between land control identification and permit holders).

The potential negative impacts of these activities related to ESS5, ESS6 and ESS7 are to be used as references in developing mitigation plans, while the potential positive impacts should be strengthened.

Evaluate and improve the technical verification mechanism in Social Forestry which is regulated in Regulation of Directorate General of Social Forestry and Environmental Partnership No. P. 11/PSKL/SET/ PSL.0/11/2016PSKL concerning Guidelines on Village Forest Management Rights Request Verification, Regulation of Directorate General of Social Forestry and Environmental Partnership N. P. 12/PSKL/SET/PSL.0/ 11/2016 concerning Regulation of Directorate General of Social Forestry and Environmental Partnership No. P. 13/PSKL/SET/PSL.0/11/2016 concerning Guidelines on TFPUP-CPF Request Verification, and Regulation of Directorate General of Social Forestry and Environmental Partnership No. P. 1/PSKL/SET/KUM.1/2016 concerning Guidelines on Private Forest Verification and Validation.

Additionally, support is needed to improve the safeguards capacity of supporting resources (such as number of officers, trainings, etc. – built into SFF project design).

(Environment) Locations with SF permits may cause land conversion and may result in a reduction of forest coverage and generate negative biodiversity impacts due to improper land and forest management.

Refer to and implement Regulation of Directorate General of Social Forestry and Environmental Partnership No. P.2/PSKL/SET/KUM.1/3/2017 concerning Guidelines on Social Forestry Development, Control, and Evaluation.

In addition, implement Environmental Codes of Practices and include effort to develop and improve the instruments for Social Forestry Monitoring and Evaluation in the project activities.

(ii) Mapping and creating boundaries and land zones for various purposes.

(Environmental) Poor planning in land use may generate environmental degradation. There is a remote risk, in contrary to the project objectives, that land use planning and preparation of indicative social forestry mapping (PIAPS) may result in conversion of high conservation value areas into SF sub-project activities such as timber/crop plantations and ecotourism that leads to environmental degradation. This

Strengthen PIAPS verification guidelines to include more explicit identification of community users, existing and potential conflict in proposed permit areas (IUPHKm).

Use and implement Regulation of Minister of Environment and Forestry No. P84/MenLHK-Setjen/2015 concerning Tenurial Conflict Management within Forest Estate in conjunction with Regulation of Director General of SFEP No. 4/PSKL/SET/PSKL.1/4/2016 concerning Guidelines on Forest Estate Social Tenurial


risk is raised in the ESMF to inform the project design process.

(Social) SF estate participatory mapping has the potential to create boundary disputes with private parties/permit holders and indigenous peoples and local communities, within forest areas.

The project does not involve mapping of village boundaries, however in demarcating forest areas for Social Forestry purposes, and in supporting the establishment of village associations are for social forestry enterprise/livelihood purposes, issues over boundaries may arise.

Conflicts Mediation in conjunction with Regulation of Directorate General of SFEP No. 6/2016 concerning Guidelines on Forest Estate Tenurial Conflicts Assessment that refers to the Regulation of the Supreme Court of the Republic of Indonesia No. 1 of 2016 concerning Mediation Procedures in Court.

Presidential Regulation No. 88 of 2017 concerning Land Control Settlements within Forest Estate.

Utilise the guidelines on participatory mapping10.

In relation to village boundary, guidelines on arrangement and establishment of village boundary and village boundary conflict resolutions by MCA-Indonesia that refer to Regulation of the Minister of Home Affairs No. 45 of 2016 could be used as reference, particularly on indigenous peoples and local community disputes by adopting alternative dispute settlement approaches.

Based on MOEF Regulation No. P.83/MENLHK/SETJEN/KUM.1/10/2016 concerning Social Forestry, the conservation areas and their buffer zones have been excluded and only utilization areas are included in the PIAPS as part of the screening process.

The Environmental Codes of Practices (Annex 5) for Village/District Development Planning is to be used as reference in creating the land zones for various purposes.

Additionally, support is needed to improve the safeguards capacity of supporting resources (such as number of officers, trainings, etc. – built into SFF project design).

(Social) It is possible that women and other vulnerable groups are

Use participatory mapping guidelines that uphold gender equality and social inclusion principles. In relation to village boundary,

10 Annex 12 is a guide on participatory mapping that was produced by the Participatory Mapping

Network (JKPP) and used to produce maps of indigenous peoples and local community land claims

around Indonesia, which have also been part of the overlay maps used to determine PIAPS areas.


not involved in mapping and boundary establishment.

the MCA-Indonesia guidelines on arrangement and establishment of village boundary can be used11.

Additionally, attention shall be paid to Guidelines on Gender Mainstreaming within Social Forestry (Annex 9) and Community Participation Framework (Annex 8).

(Environment) During zoning activities, bad planning or Indicative Map of Social Forestry Area being misaligned with spatial planning may cause loss of high conservation value area and affecs biodiversity and ecosystem services.

Use and implement Regulation of Minister of Environment and Forestry No. 29 of 2009 concerning Guidelines on Regional Biodiversity Conservation. This is a regulation and guideline that exists and is to be utilised as the mitigation response to the impact mentioned. The impact of poor enforcement of regulations can be mitigated by strengthening use of the regulation, which is built into the project design.

It is important to align IMSF (PIAPS) with Spatial Planning through meaningful public consultation with stakeholders at the regional level, with adequate timeline and verified participants.

Additionally, environmental impacts on biodiversity and ecosystem services mitigation details are to be prepared by developing Environmental and Social Management Plan, as described in this document (and Annex 4 regarding Screening on Social and Environmental Impact). General Guideline for High Conservation Value has also been provided in Annex 20.

(Social) In zoning activities, it is possible that the area within SF contains physical cultural resources (including sites with archaeological, paleontological, historical, religious, or unique natural values) therefore in line with ESS8, there are some concerns that in the absence of good planning the activities will generate negative impacts to local sites, such as loss or change of physical cultural property or access restriction to the sites for certain community.

Provisions are listed in Chance Finds Procedures for Physical Cultural Resources, required to be followed (see Annex 7). Access restriction issues are to be determined on a case-by-case basis and management plans put in place with the necessary consultation processes and agreements, as set out in ESMF annexes.

11 Annex 13 is the guideline on agreed by Bappenas (National Planning Authority), One Map Policy

projects, prepared by the MCA- Indonesia and in use in hundreds of villages to date.


Development of village forest plan and farmers group management

Management plan implementation.

The development of the village forest plan refers to the management plan that the SF/farmer groups are to develop with TA from the project. The management plan will adhere to the ESMF guidelines and requirements, i.e. conduct screening and prepare E&S tools for sub-project activities (UKL-UPL, ESMP, ECOPs etc).

(Social) Women and other vulnerable groups including indigenous peoples may not be involved in planning and implementation.

Strengthen PIAPS verification guidelines to include more explicit identification of community users, existing ad potential conflict in proposed permit areas (IUPHKm) and ue participatory processes to develop forest management plan. Ensure project resources dedicated to mainstreaming indigenous peoples in Working Group (Pokja) consultation activities.

Refer to Guidelines on Gender Mainstreaming in Social Forestry (Annex 9)12, Community Participation Framework (Annex 8), Stakeholder Engagement Plan and Indigenous Peoples Management Framework (Annex 16) with guidance for FPIC.

(Social) Child labor (underage) may be engaged in forest management implementation.

Use Law No. 13 of 2003 concerning Workforce. Use consultative approaches to explain laws and requirements regarding the role of children in family livelihood activities, versus in business activities funding by the SSF project. This will be clearly communicated to affected communities and the SF business groups, as well as to contractors or consultants working with these groups.

Develop Labour Management within the Project Implementation Manual, with guidance and briefing for FMU and KUPS on labour laws and project requirements. Extra monitoring efforts are to be noted and made in any areas known or suspected to involve children in labour-related activities.

2.2 Development and Implementation of Community Investments

(i) To develop and implement several priority investments which are in accordance with the management plan

(Environment) Implementation of natural resources-based SF entrepreneurship has the potential to increase pressure on land and trigger forest conversion, which may result in deforestation, erosion/land slides, human-

Refer to Environmental Code of Practices/ECOPs, WBG General EHS and Industry Sector Guidelines (as mentioned in Annex 5).

Develop Environmental and Social Management Plan (ESMPs) as described in

12 Annex 9 (not translated to English) is the “Guideline for Gender Mainstreaming in Social Forestry Schemes”, a

2017 publication prepared by academics and NGO network Setapak. The guideline is a comprehensive document

that defines key concepts including gender, affirmative action, gender analysis, gendered data, gender based

budgeting, gender equality, gender gaps, gender issues and neutrality, gender participation, responsiveness, gender

based planning, FPIC and sustainable development. It is tailored to the forestry sector and to social forestry in

particular, having been developed in the wider context of Indonesia’s land reform agenda. The guideline provides

analysis of gender issues in social forestry in Indonesia, and tools to support gender mainstreaming in social

forestry activities. For SSF project it serves as a baseline reference, as guidance for developing participation, sub-

project preparation, engagement approaches, and mitigation planning.


wildlife conflict, impact to community health and safety, etc.

The potential negative impacts of these activities related to ESS3, ESS4 and ESS6 are to be used as references in developing mitigation plans, while the potential positive impacts should be strengthened.

this document (and Annexes 3 and 4 regarding Environmental and Social Impact Screening).

Built into the project activities is capacity building for SF working group and community members, in relation to alternatives for sustainable livelihoods.

Encourage community to develop facilities and infrastructures that support flora and fauna preservation, for example in developing ecotourism by building rope bridges or corridors for animals crossing and referring to the Environmental Codes of Practices (ECOP) for the ESMP.

(Environment) SF entrepreneurship attempts have the potential of increase in uncontrolled pesticide use and/or inorganic fertilizers for agricultural activities.

The reference, in this case, is policies related to pesticide control as stated in Law No. 12 of 1992 concerning Plants Cultivation System, Law No. 23 of 1992 concerning Health, Law No. 8 of 1999 concerning Consumers Protection, Law No. 32 of 2009 concerning Living Environment Protection and Management, Government Regulation No. 7 of 1973 concerning Supervision of Circulation, Storage, and Use of Pesticides, Government Regulation No. 6 of 1995 concerning Plants Protection, Regulation of Minister of Agriculture No. 24/Permentan/SR.140/4/2011 concerning Requirements and Procedures of Registering Pesticides and Ministry of Agriculture Guidelines on Integrated Pest Control.

Refer to Environmental Code of Practices/ECOPs, WBG General EHS and Industry Sector Guidelines (as mentioned in Annex 5), Guidelines Note on Integrated Pest Control (Annex 6) and General Guideline for High Conservation Value.

(Environment) SF entrepreneurship activities have the potential to develop silviculture or silvipastoral systems that do not match the ecological system in the related regions.

Perform screening and preparation of environment and social mitigation, including use of Negative List (Annex 3), conducted by Forest Management Unit at the beginning of the project when developing ESMP (Annex 4), and to ensure capacity building for Forest Management Unit staffs.

It may be necessary to obtain Environmental Permit, Environmental Management Efforts and Environmental Monitoring Efforts (UKL/UPL), The Statement of Assurance for


Implementation of Environmental Management and Monitoring (as described in Annex 11 regarding Environmental Permits and Management and Monitoring Steps (including TORs). Physical activities can only begin if Environmental Permits have been obtained.

(Environment) SF Entrepreneurship activities, such as essential oils production, has the potential to generate wastes that pollute the environment.

Develop of Environmental and Social Management Plan as described in this document (and Annex 4 regarding Social and Environmental Impact Screening).

It may be necessary to obtain Environmental Permits, Environmental Permit, Environmental Management Efforts and Environmental Monitoring Efforts, Statement of Assurance for Implementation of Environmental Management and Monitoring (as described in Annex 11 regarding Environmental Permits and Management and Monitoring Steps – including TORs). Physical activities can only begin if Environmental Permits have been obtained.

It is necessary also to learn from innovations related to waste management, for exampleessential oils waste reduction in the form of clove leaves that can be used as fuel for small enterprises, while the water that still contains essential oils can be used to make herbal soap.

(Environment) SF entrepreneurship with an emphasis on monocultural agriculture (as in the case of SF in Bima, and Dompu where the people only grow corn) has the potential to threaten biodiversity. Additionally, monocultural agriculture within a long period of time brings changes in soil structure and texture, where previously the soil was fertile.

Encourage people to perform different patterns of cultivation instead of monoculture, for example calliandra, to create Energy Forest 13 in Tuban. Or encourage people to grow nutmeg, cloves, and coconuts in Bima and Dompu.

It may be done by drawing up agreements between Forestry Partnership Acknowledgement and Protection (KUPS) and Forest Management Unit (KPH) formulated in a Partnership Agreement (NKK), especially for SF schemes in the form of Forestry Partnership, SFFUP (IPHPS), and Forestry Partnership Acknowledgement and Protection (Kulin KK).

13 Energy Forest is a forest in which a fast-growing species of tree or woody shrub is grown specifically to

provide biomass or biofuel for heating or power generation.


Field activities may result in incidents that may be related to environmental, social or safety aspects.

Implementation of ECOPs, occupational health and safety procdures, SEP and other specific instruments annexed in the ESMF to prevent the incidents.

Should incidents occur, implement the environmental, social and safety reporting tool provided in Annex 21.

2.3 Community Small-Micro Enterprises Development

(i) Community Small-Micro Enterprises Development

(Social) In revolving fund, it is possible that SFBG (KUPS) are not capable of managing it, which will lead to indebtedness or poor credit ratings.

Providing technical assistance including for use ofSFBG (KUPS) criteria so they can accept revolving fund, such as:

Legal entity

Complete and fully-staffed organizational structure

Inclusive and transparent Standard Operating Procedure (SOP)

Guarantor institution (facilitator)

Existing business plan

Internal monev system

Specific monitoring and evaluation system need to be set up in relation to revolving fund management and to ensure capacity building for SFBG (KUPS) members into be able to manage the fund.

(Social) Land acquisition, land clearing, or resettlement possibly arise due to investment capital utilization for SF.

In addition to the reference to national policies regarding land acquisition and resettlement, SFF project must utilize the Negative List of Screening Procedures (Annex 3) and the Land Acquisition and Resettlement Policy Framework/Process Framework for sub-projects where applicable (Annex 15).

(Environment) Investment capital utilization for SF businesses, such as construction work, even if not in large scale (less than 1 hectare), may generate environmental impact; the impacts can be in the form of:

direct environmental impacts, such as:

Noise, dust

Improper construction waste disposal (such as asbestos wastes)

Labor injuries due to improper Personal Protective Equipment (APD)

Dumping of asbestos wastes or other toxic and hazardous wastes from construction activities and physical development work must be carried out in accordance with the GOI regulations and best practices for waste management. Health, Safety, and Environment procedures and the Environmental and Social Management Plan shall be integrated in the the construction/physical development contract. Further information can be seen in Environmental Management Procedures for Construction Work (Annex 18).

If necessary, project facilitators inform KUPS how to obtain Environmental Permits,


Community health and safety due to environmental pollution and insufficient safety management in construction sites.

The potential negative impacts of these activities related to ESS2, ESS3, ESS4 and ESS6 are to be used as references in developing mitigation plans, while the potential positive impacts should be strengthened.

Environmental Management Efforts and Environmental Monitoring Efforts (UKL/UPL), Commitment Letter for Implementation of Environmental Management and Monitoring (SPPL) (as described in Annex 11 regarding Environmental Permits and Management and Monitoring Steps including TORs. Physical activities can only begin if the Environmental and Social Management Plan acceptable to the Bank has been prepared and the environmental permits have been obtained.

Field activities may result in incidents that may be related to environmental, social or safety aspects.

Implementation of ECOPs, occupational health and safety procdures, SEP and other specific instruments annexed in the ESMF to prevent the incidents.

Should incidents occur, implement the environmental, social and safety reporting tool provided in Annex 21.

The SSF Project is intended to improve community access and management rights on forest estate within selected priority areas. As well as improving policy and guidelines (Component 1), this project will solve many issues on the ground (Component 2). The issues to be addressed include marginalized community members’ lack of knowledge about the SF permitting process, more explicit involvement of groups such as indigenous peoples, women and female headed households, and technical assistance for such groups that form the social forestry entitites to access permits and to develop feasible and sustainable natural resource based livelihoods from the social forest permit areas. The expected benefits include clearer land use rights and livelihood development activities that match the objectives of forest cover improvement and conservation of critical habitat areas.

However, it is still possible that the project generates negative environmental and social impacts. These impacts may arise from different perceptions, poor sub-project management, lack of supervision, legal interpretations and expectation, less or wrong access to information, pressure from financial needs, risk of missed opportunities and inefficiencies in project implementation reducing the expected positive impacts due to weak Borrower capacity or other matters. This may transpire as a result of different interests between indigenous peoples and local communities (IPLC) and the government, or between communities within certain regions. Other potential environmental negative impacts relate to the side effects of the small business activities to be developed to support social forestry – based livelihoods, however these are not considered significant because of relatively low funding, the activities are small in scale; however, they may exacerbate or cause some social issues or environmental degradation if not carefully planned/managed.

5.3 Impact Prevention and Mitigation Approach Selecting project sites based on the criteria previously mentioned (ESMF Section 1) is

the first attempt to identify and minimize social and environmental risks. Strengthening the PIAPS verification process (‘Vertek’) to include more social review criteria at the upstream stage will be an important project contribution and safeguard, both for the SFF sites and for application in other SF locations around Indonesia. Further to this, the identified sub-project activities will be screened and assessed for their impacts, with additional baseline data on


biodiversity, uses and users, existing and potential conflict, and potential impacts of the proposed livelihood/enterprise activities at each site level.

A negative list has been provided to ensure that the project implementers can screen out any sub-project activities that may cause significant negative impacts. Relevant safeguard and mitigation actions as stated in Table 7 include development of Environmental and Social Management Plans (ESMPs) and other instruments to be assessed on a site/sub-project basis. These must be developed and implemented to minimize the potential SSF project impacts: each sub-project should have an ESMP prepared commensurate with the types of activity, investment, or enterprise to be supported.

The steps in the process described above are outlined here, depicted in Figure 4 in Section 6, and described in the following sections of Section 5 below:

STEP 1: Upstream screening of Project locations – use the PIAPS process, plus WB and GEF criteria

STEP 2: Implementation stage screening of proposed sub-projects (specific sites and site level activities):

• FMU performs ground truthing to check whether the PIAPS is compatible with sustainable land use that properly protects critical natural habitats, their connectivity, and buffer zones. If not, advice should be given to the central government authority to modify the PIAPS.

STEP 3: FMU and PMU/project teams refer to the ESMF’s negative list to preclude activities that will have significant environmental or social impacts.

STEP 4: FMU and PMU/project teams refer to the ESMF’s sub-project typologies to determine what type of project it is and what likely instruments/preparation is required. Table of sub-project types indicated in this ESMF provide high level guidance on likely issues and preparataion.

STEP 5: Development of proportionate ES instruments and processes for each project site/sub-activity under Component 2:

• Collect additional baseline data, conduct consultation with potentially affected local groups and persons, develop site-specific impact analyses, and mitigation plans

• Utilize the guidance in ESMF and its annexes (for example on FPIC, ESMP, ECOPs, access restrictions).

• Include capacity building and budget allocations for the ESMP implementation for each site.

STEP 6: Socialise and follow the instruments / plans prior to and during the sub-project’s implementation.

5.4 Negative List The SSF project adheres to the World Bank Environmental and Social Standards and

relevant Indonesian laws and regulations. Activities that cause significant environmental and/or social impacts will not meet the requirements as SSF Projects, thus they are put in the Negative List.

The negative list sets out activities that do not meet the requirements to be funded by this project, and includes but is not limited to:

1. Any activity converting natural forest to non-forest estate (like agricultural land, plantation, or housing complex) that is conducted within the state forest that functions


as conservation, protected, or production forest; except for infrastructure development required on a minor scale (such as roads, irrigation system, or secretariat office). Even minor scale of infrastructure development should also not be considered if it involves conversion of natural or critical habitat.14

2. Any activity that destroys, disturbs, or relocates physical cultural resources unless evidenced by comprehensive document of a negotiated agreement in line with the ESS 8 and ESMF annexes 10 (FPIC) and 15 (RPF/PF).

3. Any activity that significantly reduces biodiversity or forest ecosystem or damages natural habitat within the forest.15

4. Any activity16 with potential, significant negative environmental and social impacts which are complex, irreversible, and have never been conducted before, and requires complete environmental and social assessment to manage and mitigate the impact as stated in Regulation of Minister of Environment No. 5 of 2012, Ministry of Public Works and Housing Regulation No. 10, 2018, i.e. major infrastructure, new infrastructure within environmental and social sensitive regions, and infrastructure that requires ESIA/ Environmental and Social Impact Analysis (AMDAL).

5. Any activity that causes people to relocate unless evidenced by comprehensive document of a negotiated agreement in line with the ESS 5 and ESMF annexes 10 (FPIC) and 15 (RPF/PF).

6. Any activity that forseeably leads to human rights violation.

7. Any activity that causes negative impacts on women and children, including involving child labour in any sub-project activity.

8. Any activity related to political campaigns and election and/or related to elite capture (where elites utilize and or employ various public resources for their personal interests), like social forestry groups that rely on one or several elite groups.

9. Any activity involving hunting and/or trading of protected species and animals.

10. Activities that produce or use material or commodities that directly or indirectly disturbs human health, such as asbestos, tobacco, narcotics, and other substances as regulated by the Indonesian government.

14 The infrastructure development, even minor, should follow the requirements of ESS1 and ESS6 to be assessed prior to being supported. Examples may include access road upgrades, construction of small facilities to support enterprises, such as warehouse or work areas, storage or packing rooms, steps or rest points for eco-tourists. 15 Natural habitat mapping and assessment at the project locations, with due considerations to potential cumulative impacts of community livelihood activities, are part of the screening and scoping of environmental and social assessment and mitigation plans taking into account the baseline information in the Social Forestry Assessment document. 16 Sawmilling & timber processing (>6,000 m3), Timber utilization business operation in plantation forests (>5,000 ha), Timber utilization business operation in natural forests (any size), Development of plantation areas on non-state forest land or state forest land planned for forest conversion (seasonal: >2,000 ha, perennial: >3,000 ha), Large-scale NTFP production and processing (no threshold defined), Projects involving earth-moving activities (>500,000 m³ of earth moved), Construction rural roads that require land acquisition (≥5 km length with ≥40 ha land acquisition or land acquisition of > 50 ha), Construction of bridges (≥500 m length), Construction of ecotourism facilities (building size: >10,000 m² or land area: >5 ha), Construction of processing facilities (building size: >10,000 m² or land area: >5 ha), Development of (non-theme) recreational parks (>100 ha), Construction of dam/reservoir (>15 m height), Fish ponds with (semi) advanced technology (>50 ha)


Use of this negative list is a preliminary screening process to be applied on a site-by-site basis.

5.5 Framework of Sub-Project Typologies In addition to screening from the Project Negative list, the following typoloy of subroiejcts that has been developed to assist in the steps to preparing appropriate environmental and social risk management instruments. There are three general types of sub-projects foreseen under the SSF project, as follows:

• Type 1: Sub-projects with no infrastructure requirement, no land acqusition and only using TA on forest land, to improve or diversify species/crops/production:

o These may require SPPL and ECOPS, chance finds procedure, community participation guidelines (applicable Annexes: 5, 7, 8, 11)

• Type 2: Sub-projects with minor infrastructure requirements deemed not significant, to support production, processing or packaging of SF produce; eg store house, work areas; which may be inside or outside forest areas and may require some minor land acquisition (refer Table 8 for indicative list of sub-project typologies)

o These may thus require UKL-UPL, ESMP chance finds procedure, and land acquisition (applicable Annexes 4, 7, 8, 11, 15, 18)

• Type 3: Sub-projects with larger land or infrasturcure requirements and/or environmental impacts of significance (eg water usage, waste produced etc from a production process or for ecotourism), or micro-hydro electiitity or bottling water, etc related to the activity.

o As per Type 2 but may also require ESIA or specialist permits; sub-projects that are excluded from project funding due to the negative list, may appear as Type 3 projects and are included here to alert and assist project teams in screening them out as sub-porjects, or facilitating their development outside of project funding ).

Note: community consultation and FPIC procedures may apply to any or all these sub-project typologies.

Table 8 provides an indicative range of potential sub-projects typologies under Component 2 at the selected sites and relevant environmental instruments annexed in the ESMF to mitigate the potential environmental and social risks based on the indicative baseline conditions.

16

Table 8 Sub-project Typologies, Footprint, Baseline Sensitity, Potential Environmental Risks and Instruments

Potential Sub-project Types

Foot print Baseline sensitivity Potential Environmnetal Risks

Environmental Instruments

South Lampung Regency

Forest management and agroforestry:

• Crop plantations (corn, coffee)

• Timber plantations (Sengon/Legumes, Teak Wood)

• Agroforestry (crop and timber)

Small scale:

• Sawmilling & timber processing (<2,000 m3)

• Processing of plantation crops

• Processing and packaging of crops, forest products

Moderately sensitive that may include minor greenfield development: some proximity (not inside) to Protected Forest area that is habitat of GoI protected flora and fauna, and IUCN endangered species

Erosion and sedimentation run-off, loss/ fragmentation of habitats, loss of biodiversity, health & safety and contamination/pollution risks from uncontrolled use of pesticides and fertilizers, traffic safety, noise, dust during harvesting periods

HCV (Annex 20) IPM (Annex 6) SPPL (Annex 11) ECOP (Annex 5)

Medium scale:

• Sawmilling & timber processing (2,000-6,000 m3)

• Timber utilization business operation in

community plantation forests (≤10,000 ha)

• Development of plantation areas on non-state forest land or state forest land planned for forest conversion (seasonal: <3,000 ha, perennial: <3,000 ha)

HCV (Annex 20) IPM (Annex 6) UKL-UPL (Annex 11) ESMP (Annex 4)

Poultry farming Small scale, may include minor land conversion

Odor, pollution from organic wastes, occupational health and safety

SPPL and ECOP (Annexes 11 & 5)

Ecotourism including construction, operation and maintenance of roads,

Small to medium scale, may include some land conversion:

• Construction of ecotourism facilities (building size up to 2,000 m²)

Erosion and sedimentation run-off, loss/fragmentation

HCV (Annex 20) SPPL (Annex 11) ECOP (Annex 5) or UKL-UPL





access roads, small-scale facilities and buildings

• Construction of commercial/ administrative buildings (building size up to 2,000 m²)

of habitats, loss of biodiversity, occupational health and safety, fugitive dust, noise during construction

(Annex 11) and ESMP (Annex 4)

Lima Puluh Kota Regency

Water supply Small to medium, extraction of water:

• ≤ 250 liter/second from surface water or springs

• ≤ 50 liter/second from groundwater sources

Moderately sensitive that may include minor greenfield developments: some protected flora and fauna at the project location

Occupational health and safety, fugitive dust, noise during construction, competition over water use

UKL-UPL or SPPL (Annex 11) ESMP or ECOP (Annexes 4 or 5 & 18)

Ecotourism including construction, operation and maintenance of roads, access roads, small-scale facilities and buildings




Erosion and sedimentation run-off, loss/fragmentation of habitats, loss of biodiversity, occupational health and safety, fugitive dust, noise during construction

HCV (Annex 20) SPPL (Annex 11) ECOP (Annex 5) or UKL-UPL (Annex 11) and ESMP (Annex 4)

Non-timber products (rattan, sugar palm)

Small scale:

• Small-scale NTFP production and processing (no threshold defined

• Processing and packaging of crops, forest products, and NTFPs

Loss/fragmentation of habitats, loss of biodiversity, occupational health and safety

HCV (Annex 20) SPPL and ECOP (Annexes 11, 5 & 21)





Medium scale:

• Medium-scale NTFP production and processing (no threshold defined)

HCV (Annex 20) UKL-UPL (Annex 10) ESMP (Annex 4)

Tuban Regency


• Timber plantations (Teak wood, Mahony, Sengon/Legumes)

• Crop plantations (coffee, seasonal crops)

Small scale:




Moderately sensitive that may include minor greenfield developments: proximity to limestone caves and mangrove forests

Erosion and sedimentation run-off, loss/fragmentation of habitats, loss of biodiversity, health & safety and contamination/pollution risks from uncontrolled use of pesticides and fertilizers, traffic safety, noise, dust during harvesting periods

HCV (Annex 20) IPM (Annex 6) SPPL (Annex 11) ECOP (Annexes 5 & 18)

Medium scale:






Ecotourism including construction, operation and maintenance of roads, access roads, small-



Erosion and sedimentation run-off, loss/fragmentation of habitats, loss of biodiversity,






scale facilities and buildings


occupational health and safety, fugitive dust, noise during construction

Bima and Dompu Regencies

Agroforestry (kemiri, coffee, bamboo, crop & timber)

Small scale:



Moderately sensitive that may include greenfield developments: known high biodiversity values in the area including primary forests, but also include degraded areas as result of illegal logging of Teak wood and Sonokeling/ Rosewood



Medium scale:



Wild honey farming Small Occupational health and safety

SPPL and ECOP (Annexes 11, 5 & 18)

Seagrass harvesting and seafood catch (lobster, crab, shrimp, tuna)

Small Occupational health and safety

HCV (Annex 25), SPPL and ECOP (Annexes 11, 5 & 18)

Bird/Swallow nest farming (wild or domestic)

Small Occupational health and safety, pollution from organic wastes

HCV (Annex 20), SPPL and ECOP (Annexes 11, & 18)





West Halmahera Regency


• Crop/Agroforestry plantations

• Timber plantations

Small scale:


• Processing of plantation crops Processing and packaging of crops, forest products

Moderately sensitive that may include greenfield development: allocation for production forest area in the region, and also presence of mangroves, corals, and seagrass around the coastal areas



Medium scale:




Development of plantation areas on non-state forest land or state forest land planned for forest conversion (seasonal: <3,000 ha, perennial: <3,000 ha)


Ecotourism, including construction, operation and maintenance of roads, access roads, small-scale facilities and buildings (mangrove, beach, hot water springs)






21

5.6 Environmental and Social Management Plan (ESMP) The SSF Negative List precludes support for activities with anticipated impacts that

are significant and warrant a formal ESIA or AMDAL with regulated environmental permit. The typology and table in this section of the ESMF indicate if an ESMP, ECOP or other permit (such as UKL-UPL) will be required. All activities that potentially cause minor negative environmental and social impacts are required to be addressed in the site-specific Environmental and Social Management Plans (ESMP), which must be developed by PIU and approved by World Bank prior to implementation, and then implemented consistently. The ESMP will be developed by the PIU based on action plans that will be developed in consultation with the Farmers/Customary/Community Social Forestry Business Groups in each location. Annex 4 provides an outline of an ESMP to be developed for each site/sub-project.

Where project activities will affected land use by traditional users (indigenous peoples or local communities), either by requiring their activities to cease, be relocated to another area, or access to resources and / or culturally significant sites in or adjacent to the sub-project area, the impacted persons must be clearly identified and the proposed changes must be consulted with, following the principles and guidance provided in this ESMF and it annexes, particularly Annex 8 (CPF), Annex 17 (SEP), Annex 10 (FPIC) and Annex 15 (LARFP/PF). The presence of conflicts over areas or resources within the proposed SF area will be documented and assessed through consutation with affected groups and competent parties (see CPF), informing and involving the PMU and SF working Groups (Pokja) throughout the process. Detailed documentation of agreements reached are to be provided in the ESMP and other instruments as required. For example, an IPPF (see Annex 16) may also be required to document in greater detail than the ESMP the indigenous baseline and predicted impacts specific to a sub-project, and to include evidence of FPIC and the agreed mitigation actions. Safeguard specialists in the PMU are responsible for overseeing the utilization of the annexes, and their intent and content, including for gender involvement in consultations, planning, agreements and implemention of sub-projects, aligned with Annex 9 Guideline on Gender Mainstreaming.

The requirements to have management and monitoring of potential environmental and social impacts as well as the institutional arrangements for implementation of these activities in the ESMP have been described in the SSF Environmental and Social Commitment Plan (ESCP), including requirement to develop the monitoring and evaluation provisions for biodiversity and natural habitats/forests for all land use planning and sustainable use. Measurable criteria for benchmark have been defined in the Project Results Framework, such as number of selected provinces/districts established Social Forestry management plans that integrate conservation of biodiversity into their economic strategic plans.

Table 7

Example of Environmental and Social Management Plan

No.

Impact and Risks Mitigation Plan Monitoring Plan

Who Budget Project Activities

Impact and Risks

Significance Action

Mitigation Where When

What is being Monitored

Where When

1 Regional regulation public consultation related to Social Forestry Acceleration

Social Risks: Indigenous Peoples Group, women and other vulnerable groups are not involved

Representation of Indigenous Peoples, women, and other vulnerable groups is significant to ensure policies protect those

To use the National Forestry Board (DKN) Public Consultation Guidelines as recommended in ESMF Document

West Halmahera District

October - November 2020

- - - Forest Management Unit (KPH) Staff name X

-


which results in meaningless public consultation

parties in accordance with Social Forestry objectives

To identify IPs, Women, and other Vulnerable Groups representation by consulting with Working Group on Social Forestry (Pokja PPS) and Civil Society Organizations.


Week 2 October 2020

List of IPs, Women, and other Vulnerable Groups representation by consulting with Working Group on Social Forestry (Pokja PPS) and Civil Society Organizations.

Preparation of Public Consultation is in progress

Week 2 October 2020

Forest Management Unit (KPH) Staff name X

Rp 500.000

To send invitations and ensure they reach relevant parties (including confirmation)


Week 2 and 4 October 2020

Attendance of Indigenous Peoples, women, and other vulnerable groups (as per invitations sent)

Public Consultation of Regional Regulation on SF Acceleration is in progress

Week 4 November 2020

Forest Management Unit (KPH) Staff name Y

Rp 500.000

5.7 Environmental Code of Practice (ECOPs) The SSF Negative List precludes support for activities with anticipated impact that are

significant and warrant a formal ESIA or AMDAL with regulated environmental permit. Sub-project types 1 and 2 (refer section 5.3), which do not or may include minor infrastructure requirement, the Environmental Code of Practice/ECOPs and the WBG General EHS Guidelines and Industry Sector Guidelines serve as reference for SFF project implementers about good practices in managing the environment, particularly in terms of agroforestry, small enterprises, farming, fishery, nursery and community timber logging. The ECOPs in Annex 5 describe the requirements for any sub-project/site plan implementing social forestry business development activities. For the activities that have been identified for each group/area and have been screened as having a potential (minor) environmental impact, an ECOP must be included as part of the site ESMP. The ECOP will be specific to the kind of activity and impact identified in the screening and tailored to the sub-project location and context, documented in the ESMP. The guidelines will also be used as material in capacity building for members of framers/indigenous peoples, facilitator and PIU, and it will be conducted during the project implementation stage. Further details can be seen in Annex 5.

5.8 Stakeholder Engagement Plan The objective of the stakeholder engagement plan is to illustrate strategies and

implementation efforts to engage relevant, influential stakeholders in all SSF processes and cycles. This is because collective interpersonal management, approaches, and interaction are required for meaningful stakeholder engage engagement. It is required particularly within Indonesian culture that upholds friendliness and mutual cooperation as the key to build a good interpersonal relationship. It is worth noting that the main point of engagement is building relationship; it means that engagement is a daily process that involves each individual in a project to collaborate in building good, sincere relationships with all stakeholders at each level, which creates mutual understanding, trust, and respect.

The key component in stakeholder engagement can be categorized into 8 (eight) steps:

1. Stakeholders Identification and Analysis: A process to identify and prioritize main stakeholders, including understanding their interests and concerns.

2. Information Disclosure: It is important to communicate objectives and results expected from the SSF project to all main stakeholders at the beginning and during the project cycle.

3. Consultation with Stakeholders: To conduct a series of inclusive consultation using participatory approach and ensure everything is documented well and followed up.


4. Negotiation: Mutual strategies on the best ways to approach certain situation are required to face complex issues and potential personal and institutional challenges.

5. Grievance Redress: Establish an agreed mechanism that can be accessed and responsive to issues and real grievance, which is an important part in this step. It can be a dialogue mechanism/platform for public input on tenurial or projects conflicts.

6. Stakeholder Engagement in Project Monitoring: To engage stakeholders that are impacted by all project cycles, particularly during evaluation and monitoring processes that will promote trust and ownership, which will result in better environmental, social, and economic outcomes.

7. Reporting to Stakeholders: Engagement in project monitoring shall be reported to a larger audience to ensure accountability and transparency.

8. Management Function: to develop a mechanism to manage stakeholder engagement by documenting processes to include commitment tracking and reports on progress, achievement, and challenges to stakeholders and wider audience at every engagement level.

Further details on the stakeholder engagement plan are presented in a separate document (Annex 17).

As the SSF project involves adat communities in most locations, an Indigenous Peoples’ Planning Framework (IPPF) Annex 16 and guidelines on Free, Prior and Informed Consent (FPIC – see Annex 10) are provided for reference. Annex 16 includes a tool for screening to identify the presence of indigenous peoples at a site/sub-project area.

Each site/sub-project area is required to demonstrate the processes of meaningful consultation with local indigenous peoples, including identification of their interests and potential impacts, and their preferred means of engagement in project activities. Based on the documented consultations, impact mitigations specific to adat peoples may be included in the ESMP or in a site-specific Indigenous Peoples Plan (IPP). Consultation on the ESMF involved indigenous peoples organisations at 2 sites and national level, during which is was identified that the likely preferred mechanism for ensuring indigenous involvement in project activities will be through inclusion of representatives in the Provincial Level Working Groups (Pokja) and through training of FMU and PIU personnel in appropriate and inclusive consultation approaches and methods. It is the specific responsibility of the PIU manager/leader and the project safeguards personnel to ensure that adat groups are identified and appropriate representatives are engaged in line with the guidance in this ESMF.

5.10 Public Participation in the Project Public participation in SSF Project is designed at the beginning with some key

objectives: a) to provide key stakeholders, including all potentially affected parties, with complete comprehension regarding potential environmental and social negative impact; b) to provide information specifically to Indigenous Peoples and Local Communities (IPLCs) regarding SSF project that is designed since the beginning to meet public consultation requirement and FPIC (PADIATAPA) which is free of pressure as stated in (Annex 9 and 10) and; c) To prevent vertical and horizontal conflicts. During the ESMF preparation, consultation at the district level included local community representatives and at the national level public consulation in January 2019, represntatives of academia as well as NGOS and indigenous organisations including AMAN, cultural experts from BRWA (Adat Areas Registration Authority), TP2PS (Team for Acceleration of Social Forestry) and FKKM (Community Forestry Communication Forum). Input regarding assessment processes prior to activities being implemented, and on conflict prevention, have been incorporated into this ESMF.


The project design shall guarantee that a minimum 30% of the beneficiaries are women. Furthermore, the project shall deliberately target participation of vulnerable groups, like poor people and youth. Participatory processes have to document the engagement of as many women and vulnerable groups representatives as possible.

Public participation in this project refers to:

1. Participation in developing activities plan

During planning, participation shall include the following stages:

- PIU (Forest Management Unit) and facilitators shall provide clear preliminary information that illustrates the scope of SSF project (including negative list of activities that cannot be funded), opportunities offered and benefits for Indigenous Peoples and Local Communities (IPLCs) through a series of meetings with community groups and facilitators within their regions.

- Undertake other communication initiatives (other than meetings) to ensure the information reaches all levels of the community, including women, poor people, youth, and other vulnerable groups.

- Develop and record in the ESMP a mechanism of decision making in accordance with the local norms, habits, and traditions that will create interests for Indigenous Peoples and Local Communities (IPLCs) to propose action plans in SSF project. In certain aspects, the mechanism needs to be expanded to involve more women and members of vulnerable groups, like poor people, youth, and other groups (for example by holding specific meetings with adjustable time, location, and implementation).

- Facilitate participatory planning to ensure that opportunities offered by SSF are aligned with Indigenous Peoples and Local Communities (IPLCs) aspirations.

- If actions have been agreed on but they do not meet ESMF requirements, PIU shall hold facilitation for Indigenous Peoples and Local Communities (IPLCs) and Facilitators, and exceptions noted with proper justification and review by World Bank.

2. Participation during implementation

The SSF project implemenation has to be participatory and one of the main safeguard objectives in this regard is to prevent or manage potential conflicts, both vertical ones with the government or horizontal ones among community members, and with members of Indigenous Peoples and Local Communities (IPLC) who are not the beneficiaries or among Indigenous Peoples and Local Communities (IPLC) as the beneficiaries. This includes involving vulnerable groups, in which 30% of the groups are women, but noting that there will be many in the community that may not be involved in the project activities and still need engaging to ensure understanding, acceptance and to avoid conflicts.

In this participatory process, the main stages are:

- Delivering preliminary information regarding scope, objectives, and opportunities for community-based business/enterprise development program that will be conducted.

- Conducting in-depth participatory assessment regarding whether community-based business/enterprise development activities being planned will have impacts on the environment, social, and cultural aspects or whether they are aligned with Indigenous Peoples/Local Communities (IPLC) social model.


- Developing mitigative action plans if there is a possibility of negative impact. If required by local legislation, mitigative actions shall be stated in Environmental Permit, Environmental Management Efforts and Environmental Monitoring Efforts (UKL/UPL) or The Statement of Assurance for Implementation of Environmental Management and Monitoring (SPPL) documents to obtain environmental permits. The permits are required to conduct on-site activities.

- Deciding on which activities to be conducted within a certain period of time with clear schedule by using participatory approach.

- Delegating roles to conduct activities.

3. Participating in project monitoring and evaluation.

Regularly monitor and evaluate activities in a participatory manner, involving affected persons or representatives of the main groups including vulnerable or potentially excluded groups.

Further information on community participation in the SSF project is described in Community Participation Framework (Annex 8) and information regarding specific participation of indigenous peoples can be seen in Indigenous Peoples Planning Framework (Annex 16) and Annex 10 on Free, Prior and Informed Consent.

5.11 Information Disclosure EA/PMU must create good and reliable documentation and provide public

information access related to ESMF implementation, both for participation processes and Environmental Permit, Environmental Management Efforts and Environmental Monitoring Efforts (UKL/UPL) or The Statement of Assurance for Implementation of Environmental Management and Monitoring (SPPL) implementation.

The ESMF document (in Indonesian) has been uploaded to MoEF website (http://www.menlhk.go.id/site/single_post/1858) on February 8, 2019. In the future, relevant documents (in Indonesian and English) will also be uploaded to the World Bank website or SSF Project specific website.

In addition to website-based information disclosure, Environmental and Social Management Plans (ESMPs) must be displayed in places that can be accessed by community level stakeholders that may be impacted.


6 ESMF Implementation

6.1 Implementation Phases The SSF Project adheres to all of the World Bank’s policies and relevant Indonesian

laws. Activities that cause harmful environmental and/or social impact will not meet the requirements as SSF Projects, thus they are put in the Negative List. The Negative List contains attempts/main mitigative actions to avoid harmful environmental and social impact.

After preliminary screening on the Negative List, PIUs will create Environmental and Social Management Plans for each site. The plan is designed to identifiy specific impacts, provide mitigation commitments and assess effectiveness and efficiency of environment management actions to be taken. It also includes monitoring, location, and frequency variables.

Based on the activities designed by PIU and Farmers/Customary Group/SFBG (KUPS), PMU will screen and assess the activities to check their relations to potential risks and management. The screening and assessment will produce recommendations for certain activities to decide whether they can be supported, even if they have made it through the negative list based on the risks that they pose. The recommendations (ESMP) will also include prevention steps, capacity building, technical assistance, and supervision to strengthen risks management and the management plans are to be submitted to the Bank for review and acceptance.

Approval will be given to activities that do not have potential environmental and social negative impacts unless adequate mitigation measures are in place through the ESMPs. Sub-project activities that have potential environmental and social impact must be scrutinized to decide whether they need to prepare Commitment Letter for Implementation of Environmental Management and Monitoring (SPPL) or categorized as activities that require Environmental Permit, Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL). Approval will be given if environmental permits have been obtained based on previously identified categories.

Figure 4 briefly illustrates ESMF workflow in the SSF project, consistent with the steps described in Section 5.2:


Screening of Negative List

Environmental and Social Impact Identification and

Mitigation Plans

Activities that do not have potential significant negative

environmental and social impacts

Activities that have potential significant negative

environmental and social impacts

Not categorized as activities that require Environmental Permit, Environmental Management

Efforts and Environmental Monitoring Efforts (UKL-UPL)

Categorized as activities that require Environmental Permit, Environmental Management


Prepare Commitment Letter Implementation of Environmental

Management and Monitoring (SPPL)

Prepare Environmental Permit, Environmental Management


WB Review and Acceptance in parallel of the Process to Obtain Environment Permit

WB Review and Acceptance

Environmental and Social Mitigation Implementation

Monitoring, Supervision, Reporting

Figure 4 Impact Management Workflow


6.2 Institutional Arrangements As per the agreement between the Government and the World Bank and according

to the prevailing legislation, the funding to be used to execute this project is a decentralization fund. Therefore, according to the existing institutional roles and functions, Directorate General of Social Forestry and Environmental Partnership (PSKL) is the Executing Agency.

The institutional elements of the project organization are:

1. National Steering Committee (NSC) is led by the Directorate General of Social Forestry and

Environmental Partnership (PSKL).The NSC members are the echelon 2 officials in charge of the Forests and Social Forestry i.e. Ministry of Environment and Forestry (MoEF), National Development Planning Agency (Bappenas), Ministry of Home Affairs (MoHA), Ministry of Village, Development of Disadvantaged Regions and Transmigration (MoV), Coordinating Ministry for Economic Affairs (CMEA), Ministry of Agriculture (MoA), Ministry of Finance (MoF), Ministry of State Owned Enterprises (MoSOE), Ministry of Cooperatives (MoC), Micro, Small and Medium Enterprises (MSME), Ministry of Trade (MoT), Creative Economy Agency (BEKRAF), Ministry of Agrarian Affairs and Spatial Planning (MoAASP), Ministry of Tourism, 2 (two) members of Social Forestry Acceleration Team (locally TP2PS)

2. Project Management Unit (PMU) or Executing Agency (EA) led by the Director of Social Forestry Area Preparation (PKPS) as the Proxy Budget User (KPA) of the SSF Project;

3. Project Implementation Unit (PIU) at the Management Unit/Forest Management Unit (KPH) as the Commitment Making Officer (PPK) of SSF Project

4. Project Management Office (PMO) is the professional administrative consultant

5. Provincial Forestry Agency as mandated in Law No. 23 concerning Decentralization.

6. Working Group of Social Forestry Acceleration

7. Project Management Consultant to SSF Project (PMC) is a professional institution commissioned by the PMU (or the World Bank) to provide services or technical assistance for PMU and PIU. PMC consists of several consultants in their corresponding expertise (Team Coordinator; Policies and Institutional Specialist; Capacity Building Specialist; Business Development Specialist; Safeguard Specialist; Monitoring Specialist; Communication Specialist; Evaluation and Outreach; Procurement Specialist; and Financial Specialist).

The Project Implementation Unit (PIU), in this case the Forest Management Unit (FMU) established in the project working area, serves as the site-level executor. In relation to safeguarding, they have to consider negative list as a list of activities that cannot be supported by SSF project. Environmental and social management framework at site level must be implemented with supervision from the PIU safeguard specialists. Planning process must be completely participatory and consulted with the beneficiaries, i.e. targeted Forest Farmers Group (KTH)/Social Forestry Business Unit (KUPS) and with their approval. PIU needs to generate environmental management and monitoring plans (ESMP) acceptable to the Bank and obtain the necessary permits before commencing the project (see Figure 4). Mitigation and monitoring actions must be made in writing.

PMU takes the role of disseminating information regarding screening, use of the negative list of activities that cannot be funded by the SSF Project to on-site implementers and all relevant parties, and preparation of the ESMPs, including with appropriate consultation of stakeholders including indigenous peoples where relevant. PMU also puts emphasis on the importance of stronger environmental and social management by ensuring adequate staffing and budget allocations. PMU will conduct capacity building related to


environmental and social management to all relevant parties, as set out in the Project Implementation Manual (PIM) and its capacity building plan. PMU supervises the PIU in the implementation of environmental and social management framework and reports aggregate impact of the project to all relevant parties.

Based on assessment of potential negative impacts, the SSF project’s ESMF is focused on several main instruments, namely:

1. The negative list of activities that cannot be supported must be clarified by PMU to PIU during planning phase.

2. Public access to information and grievance redress arrangement includes management of project management problem solving.

3. Framework of environmental management and monitoring plan used by PIU at project planning and implementation phases.

4. Supporting Instrument:, Land Acquisition and Resettlement Action Plan Framework / Process Framework (LARPF/PF), Indigenous Peoples Policy Framework (IPPF), Environmental Management Procedures, Environmental Codes of Practices, Community Participation Framework, Stakeholders Engagement Plan, Guidelines on Gender Mainstreaming in Social Forestry, Guidelines on FPIC (PADIATAPA), Guidelines on Public Consultation, Conflict Management, and so on.

Table 8

Responsibility of Each Party in Environmental and Social Management

Phases EA/PMU PIU

Activities Planning Dissemination of information to PIU and all relevant parties regarding safeguard, its policies, and the negative list of SSF project.

Capacity building related to ESMF

Identification of social and environmental issues and the mitigation as well as making Environmental and Social Management Plans and related instrucments (RAP or IPP if required).

Documentation of consultation with stakeholders including specific processes for indigenous peoples.

Committed to implement ESMF, including preparing relevant plans based on ESMF annexes (such as ECOPs, Indigenous Peoples Plan, etc.)

Implementation Disclose relevant information to the public

Monitor the implementation of Environmental and Social Management Plan at the site level

Redress grievance at the national level

Implement, monitor, and report Environmental and Social Management Plan.

Documentation of consultation with stakeholders including specific processes for indigenous peoples.


6.3 Capacity Building Capacity building is required to ensure that the project design activities and additional

mitigation provisions are implemented, with scope, effort and budget commensurate with the project risk categorization. Capacity building based on an assessment and plan, are integrated in the Project design and Operations Manual, with many ESMF-related subjects included as part of wider training packages.

EA/PMU is responsible for ensuring that all parties’ capacity, especially on-site executors, in implementing ESMF have met the minimum requirements. Capacity building related matters, including funding related to ESMF implementation will be provided through several ways, including through technical meetings, work meetings, coaching clinics, training and technical assistance.

Capacity building will be provided to staff appointed by PMU, PIU, Facilitators, and representatives of the community (Forest Farmers Group [KTH]/Social Forestry Business Unit [KUPS]) and Forestry Management Units. Training will be delivered before implementation of the activities where feasible. During project implementation, refresher sessions will also be conducted regularly along with regular mentoring assisted by safeguard specialists.

The main topics for capacity building program in ESMF are:

1. Review on policies, regulatory framework and the Bank’s Environmental and Social Standards related to SSF Project and social and environmental management in Indonesia, including procedures for obtaining environment permit;

2. Negative List as preliminary screening tool when developing sub-project activities;

3. Potential environmental and social issues in SSF Project and risks mitigation/management, including preparation of Environmental and Social Management Plan (ESMP) for each site;

4. Community participation approaches to prevent elite capture and particularly for gender mainstreaming, indigenous peoples and another vulnerable groups participation and FPIC;

5. Environmental Code of Practices (ECOPs), WBG General EHS and Industry Sector Guidelines regarding good practices in environmental management and Environmental Code of Practices for Construction Work;

6. Lessons exchange on SSF Project activities that meet ESMF requirements and good practices on environmental and social management; and

7. Good grievance redress and conflict settlement process and skills for on-site (PIU or Forest Management Unit and Local Government) and national-level implementers (in

Redress grievance at site level

Post-implementation Monitor, evaluate, and report aggregate impact of the project

Monitor project impact at site level, including how GRM is implemented and implementation of ESMF, such as Environmental Code of Practices, Land Acquisition and Resettlement Policy Framework/Process Fraework, Indigenous Peoples Planning Framework, Stakeholders Engagement Plan, etc.


terms of mechanism and conflict mediation for project, boundary disputes, or tenurial issues).

6.4 Safeguard Staffing Safeguard staff are integrated in the project’s organizational structure through the

PMU. Their main responsibilities are:

To develop action plans according to ESMF Document;

a. Facilitate planning that includes environmental and social management at site level with PIU, with refeence to all ESMF annexes and their content, including on gender mainstreaming and indigenous peoples and local community participation;

b. Supervise and assist PIU in ESMF and ESMP implementation on site; and

c. Prepare ESMF document and attempts to mitigate negative environmental and social impact during project implementation (Environmental and Social Management Plan, Environmental Permit, Environmental Management Efforts and Environmental Monitoring Efforts or UKL-UPL, and other relevant plans to mitigate impacts including LARAP or IPP).

Additionally, two persons with expertise on Environmental and Social management, stakeholder engagement, gender, and natural resources management must be present in the PMC team to assist with SSF Project implementation. The person’s duties are as follows:

a. Assist EA/PMU in implementing action plans in accordance with ESMF Document.

b. Assist PIU in implementing screening and planning related to ESMF/ESMP at site level, including ensuring meaningful and appropriate consultation with women and indigenous peoples.

c. Assist EA/PMU in on-site monitoring.

d. Assist EA/PMU in program capacity building related to ESMF/ESMP document and various mitigation attempts for negative environmental and social impact during project implementation phase.

e. Assist PIU in implementing ESMF/ESMP on project site.

f. Assist EA/PMU in preparing ESMF/ESMP reports.

Further information regarding the Safeguard Specialist TOR is described in PIM (Project Implementation Manual) of the SSF Project.

6.5 Evaluation Monitoring, evaluation, and ESMF performance assessment will be conducted on-site

and at national level. These will be conducted on site by PIU, while EA/PMU Safeguard Staffs and PMC will conduct them at national level.

Evaluation will be focused on SSF Project activities planning and implementation that are required by the ESMF, including:

a. Records of FPIC Consultation during preparation of activities planning and implementation in line with Annex 10 guidance, adapted to local conditions. Evaluation will be based on balance of representation in consultations (gender, indigenous peoples or other vulnerable groups highlighted as having been included), decision quality, whether


it is made through decision-making mechanism in accordance with the community norms/habits/customs and the implementation of plans to minimize negative impact.

b. Records of community participation framework implementation during project planning and implementation phases, including evidence of local adaptation to conditions and prefences of marginal or vulnerable groups, use of local languages where appropriate, involvement of local cultural experts as resource persons to facilitate or advise, for excample.

c. Specific records related to women and other vulnerable groups engagement during the whole process.

d. Proof of environment permit on relevant activities.

e. Reports on environmental management and monitoring planning in accordance with

Environmental Permit, Environmental Management Efforts and Environmental Monitoring Efforts (UKL/UPL) or The Statement of Assurance for Implementation of Environmental Management and Monitoring (SPPLS) documents.

f. Reports on the monitoring and evaluation of forest management in alignment with PDO indicators; i.e. whether the small-business programs are having a positive, negative, or neutral effect on biodiversity.

g. Records of grievance received and the management process to completion, along with analysis of the grievance trends.

h. Feedback from local stakeholders who are involved in the SF program about the results of mitigation of SSF project environmental and social negative impacts, including the local people involved in SFEG (KUPS), FMU staff and facilitators, and SFWG members.

6.6 Funding for ESMF-related activities Indicative budget estimation17 for PMU in implementing the ESMF is allocated for the

capacity building of the PIU and facilitators in the districts, the stakeholders (civil services, non-civil services, NGO representatives) and safeguards montoring/supervision during project implementation to ensure the achievements of positive environmental and socio-economic impacts and prevention/minimization of negative impacts from SSF project activities.

The indicative budget for ESMF implementation, including related caoacuty building acitivties, has been calaculated at $780,121 or approximately 5% of total project funds and is defined as follows:

Component 1: Policy and Institutional Strengthening Activities

1.1 Training and dialogues related to social and environmental activities, risk and opportunities (forest management focus) ($126,289)

1.2 Strengthening SFWG capacity for public consultation and stakeholder engagement, FPIC, gender inclusion and conflict resolution processes ($ 299,809)

1.3 ESMF negative list and env/social management training ($ 29,627) Component 2: Developing and Strengthening Social Forestry

17 Indicative budget refers to Chapter VI Budget Plan and Preliminary Activities in the Project Design

Document (PDD) of the Indonesian Government and the World Bank to Strengthen Social Forestry in

Indonesia through Funding from Global Environment Facilities.


2.1 -2.2 Safeguards personnel, consultants and training on sustainability aspects of E&S management ($324,394.)

7 Grievance Redress Mechanism

EA/PMU develops a grievance redress mechanism that provides opportunities for all parties, particularly the community and it includes women and vulnerable groups at the site level to submit grievances related to the SSF project and to ensure prompt and appropriate follow up.

In relation to grievance redress or conflicts mechanism, grievance or conflicts are categorized into:

1. Local conflicts i.e. disputes or conflicts between community/group members within the Social Forestry scheme in local scope (within a certain community region) will be resolved using local/customary conflicts settlement mechanism. Local conflicts settlement mechanism embedded in a community and based on customary law or mutual agreement (written or non-written) and unique to each community. For example, in Sumarorong, Mamasa – West Sulawesi, disputes among community members will typically be resolved by “Ada’ Tuo” mechanism that involves the elders of the village who are mandated to settle disputes called Pa’ Bisara.

2. Forest tenurial conflict, i.e. various disputes or conflicts related to claims of control, management, use, and utilization of forest estate (to quote definition from P84/MenLHK-Setjen/2015 concerning Tenurial Conflicts Settlement in Forest Estate, which will be settled by forest tenurial conflicts settlement mechanism. Forest tenurial conflicts settlement management mechanism is under the DG of Tenurial and Customary Forest Conflicts Management (PKTHA) which is a part of DG of Social Forestry and Environmental Partnership (PSKL). Regulation of Minister of Environment and Forestry No. P84/MenLHK-Setjen/2015 concerning Tenurial Conflict Management within Forest Estate in conjunction with Regulation of DG of Social Forestry and Environmental Partnership (PSKL) No. 4/PSKL/SET/PSKL.1/4/2016 concerning Guidelines for Forest Estate Social Tenurial Conflicts Mediation in conjunction with Regulation of Directorate General of SFEP No. 6/2016 concerning Guidelines on Forest Estate Tenurial Conflicts Assessment. Further information regarding the mechanism is attached in Annex 13.

3. Civil/criminal conflicts like mistreatment, murder, frauds, and the likes will be settled through conflicts management mechanism in court. The conflicts management mechanism refers to court institution as regulated by the Indonesian Civil Code (KUHP) and its procedural law.

4. Grievance related to SSF Project, like dissatisfaction with public consultation, disputes on fund management and the likes will be settled through grievance redress mechanism established in the SSF Project and described in this document. For project-specific grievances, the PMU will ensure that the potential complainants have the option for anonymous reporting of grievances.

Grievances or conflicts are dynamic by nature, so there is possibility that local conflicts escalate to criminal conflicts, for example. Categorization of conflicts is also dynamic on a case-by-case basis; categories will be discussed and agreed on by PIU and Working Group on Social Forestry (Pokja PPS) with input from PMU and supported by PMC in SSF Project.

Below is a comprehensive mechanism for grievance redress for SSF project. The grievance redress mechanism for this project is made in layers, in which site level grievance is handled


with site-level grievance redress mechanism; however, in the case of unresolved grievance, the mechanism to be used is national-level grievance redress, as explained below.

7.1 Site Level Grievance Redress Mechanism Site level grievance redress is handled by PIU, in this case Forest Management Unit (KPH) (in coordination with Provincial Forestry Agency). It is known that Forest Management Unit (KPH) is established to embody the state among the people. One of the roles expected from it is to become mediator in settling grievance or disputes, so that all issues encountered on site can be resolved immediately. In other words, settlement of issues is not delayed for too long, which can make them more complex and widen the scope. In relation to this matter, SSF Project supports the Forest Management Unit (FMU or ‘KPH’) to play the relevant role.

The stages of grievance redress are:

a. Grievance Report

Those who file complaints can be members of the community, people, a group of people, or institutions.

Complainants are those who have interest based on legal object entity of the complainants that can be proven with valid permit documents.

The complainants complete Grievance Form (see Annex 14) that contains information about complainant’s identity and description of the grievance.

The complainants must list their identity, address, phone number that can be contacted to clarify their identity and communication, as well as correspondences regarding the handling of the complaints. Anonymous complaints may be registered through the same mechanism, however follow up responses will be determined on a case by case basis.

Grievance can be filed directly to the PIU or by completing grievance form on the SSF project website.

b. Grievance Documentation and Administration

Every complaint must be documented and filed in the Database. At this stage, a registration number will be assigned to each filed complaint. The PIU will issue complaint receipt for each complainant (see Annex 14).

The complaint’s progress status can be monitored with the registration number. The process must be transparent, and the complainants must be well informed about it.

c. Grievance Material Verification and Validation

Complaints will go through preliminary verification to determine whether complainants are eligible to file complaint and it is done through verification of complainant’s identity and other required documents. Further verification is conducted to determine if the material can be handled by PIU. If not, the decision and reasons must be submitted in writing to the complainants. Verification and validation must be conducted immediately, not more than 14 days after complaints are received.

d. Grievance Handling


PIU can consult the Working Group on Social Forestry (Pokja PPS) to get input in handling grievance. If required, site investigation can be conducted to get further data and information about the filed complaint. The handling process must be done within 60 days since the complaints are received.

All process must be documented well. Results of the handling and recommendations will be reported to the complainants. If a complaint is solved, a Report will be made. However, if a complaint has not been solved, further handling will be done by national level EA/PMU.

7.2 National Level Grievance Redress Mechanism Grievance handling at the next level will be done by PMU. This process can be started if at the beginning, the complaint is not considered as a matter to be handled by PIU.

The stages are the same with grievance redress mechanism at site level:

a. Grievance Documentation and Administration

Every complaint must be documented and filed in the Database. At this stage, a registration number will be assigned to each filed complaint. Complaint status progress can be monitored with the registration number. The process must be transparent and the complainants must be informed about it.

For appeals, all supplementary documents, processes, and final recommendations must be submitted by PIU to PMU.

b. Grievance Handling

PIU can consult NSC to get input in handling grievance. If required, site investigation can be conducted to get further data and information about the filed complaint. The handling process must be done within 60 days since the complaints are received.

Results of the handling and recommendations will be informed to the complainants. If a complaint is solved, a Report will be made. The results of grievance handling are final, and all process must be documented well to be used as lessons learned.

SSF Project supports project-specific grievance redress implementation (including capacity building for all parties and the funding). Additionally, this project also supports institutional optimization related to forest tenurial conflicts handling, particularly those related to social forestry within the mechanism of PKTHA-MoEF; therefore, they are required to meet six important characteristics, namely legitimate, accessible, predictable, equitable, rights-compatible, and transparent; and three medium requirements, namely authority, personal skill, and independence of process.

In brief, the SSF project grievance redress mechanism is illustrated in Figure 5 below.


Figure 5

SSF Project Grievance Redress Mechanism

Consultation with NSC

Grievance resolved

YES

NO

Documented, Feedback, Study

Grievance handled by PMU

Grievance resolved

Final Solution and Recommendations

Complaints on SSF Project implementation

Grievance Material Verification and Validation by

FMU (KPH)

Grievance Material Accepted

Grievance handled by PMU

YES

Decision Reported

Consultation with

Working Group on Social

Solution and Recommendations

NO

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