area ulubelu cluster-j - world bank...sk : surat keputusan (decree) smepp : small medium enterprises...

Area Ulubelu Cluster-J

Addendum Environmental and Social Impact Assessment

PT. Pertamina Geothermal Energy

July 2017

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Addendum ESIA for Cluster J i

TABLE OF CONTENTS

TABLE OF CONTENTS ......................................................................................................... i

LIST OF TABLES ................................................................................................................. ii

LIST OF FIGURES .............................................................................................................. iii

LIST OF APPENDICES ....................................................................................................... iv

LIST OF ABBREVIATIONS .................................................................................................. v

1.0 INTRODUCTION ....................................................................................................... 1

2.0 PHYSICAL LOCATION ............................................................................................. 3

3.0 TECHNICAL JUSTIFICATION OF CLUSTER J ........................................................ 5

4.0 CLUSTER J PROJECT SCHEDULE UPDATE ......................................................... 6

5.0 SITE SURVEY RESULTS .......................................................................................... 7

6.0 LAND ACQUISITION IMPLEMENTATION .............................................................. 13

7.0 IMPACT MITIGATIONUPDATE OF CLUSTER J FOR ULUBELU ESMP ............... 18

8.0 CONCLUSION ........................................................................................................ 20

Addendum ESIA for Cluster J ii

LIST OF TABLES

Table 1. Cluster J Development Schedule ..................................................................... 6

Table 2. Farmers Vs Utilization Of Compensation Fund ............................................. 15

Table 3. CSR Program ................................................................................................... 19

Table 4. SMEPP Activities ............................................................................................. 19

Addendum ESIA for Cluster J iii

LIST OF FIGURES

Figure 1. Ulubelu Location Map............................................................................. 3

Figure 2. Ulubelu Location Map with Zoomed-in Cluster J ................................. 4

Figure 3. Overlay Map of Ulubelu Geothermal Area and Protection Forest ....... 5

Figure 4. Cluster J IPPKH Map .............................................................................. 7

Figure 5. Aerial Mapping ........................................................................................ 8

Figure 6. Aerial Mapping - Cluster J Zoomed in ................................................... 9

Figure 7. Pathway to Cluster J .............................................................................. 9

Figure 8. Boundary Marker of Protection Forest with Access Road. The cleared

area is private land/APL for access road ............................................ 10

Figure 9. Existing Environmental Conditionof Cluster J ................................... 10

Figure 10. Small Cabin North of Cluster J ............................................................. 11

Addendum ESIA for Cluster J iv

LIST OF APPENDICES

Appendix 1 Reference to the Supplemental ESIA covered in this Addendum ESIA

Appendix 2 Forestry Land Use Permit (IPPKH) No. 105/1/IPPKH/PMDN/2016

Appendix 3 Minutes of Meeting of Socialitation/Consultation

Appendix 4 Hand Over of Replacement Land

Appendix 5 Organizational Working Procedures No. B-006/PGE520/2016-S0

Appendix 6 Maps: IPPKH, Compensation Land

Appendix 7 Environmental and Social Management Plan (ESMP)

Addendum ESIA for Cluster J v

LIST OF ABBREVIATIONS

BKPM : Badan Koordinasi Penanaman Modal (Capital Investment Coordination

Board)

DR : Dana Reboisasi (Reforestation Fund)

ESIA : Environmental and Social Impact Assessment

HKm : Hutan Kemasyarakatan (Community-based Forest)

IPPKH : Ijin Pinjam Pakai Kawasan Hutan (Forestry Land Use Permit)

KPHL : Kesatuan Pengelolaan Hutan Lindung (Protection Forest Management Unit)

KLHK : Kementerian Lingkungan Hidup & Kehutanan (Ministry of Environment &

Forestry)

LIDAR : Light Detection and Ranging (the latest technology for collecting spatial data)

PGE : PT. Pertamina Geothermal Energy

PNT : Penggantian Nilai Tegakan (Replacement of Standing Tree Values)

Posyandu : Pos Pelayanan Terpadu (Integrated Health Service for Mother and Child)

PSDH : Provisi Sumber Daya Hutan (Provision of Forest Resources)

SK : Surat Keputusan (Decree)

SMEPP : Small Medium Enterprises Partnership Programs

Tim GANIS : Tim Tenaga Teknis (Technical Team)

WKP : Wilayah Kuasa Pengusahaan Panasbumi (Geothermal Concession Area)

Addendum ESIA for Cluster J vi

EXECUTIVE SUMMARY

1. This document is an addendum to the Pertamina Geothermal Energy (PGE) Ulubelu Unit

3 and 4 Supplemental Environmental and Social Impact Assessment that focus on the

additional information and assessment on Cluster J, which was stated in the Supplemental

ESIA as the future cluster located in the protection forest.

2. Field survey that was carried out in 2015 and 2017 found that Cluster J and some sections

of the access road are located in the Bukit Rindingan Protection Forest Area. A Forestry Land

Use Permit (IPPKH) was granted to PGE by the Indonesian Ministry of Environment and

Forestry (KLHK) through the Head of Investment Coordination Agency (BKPM) Decree No.

105/1/IPPKH/PMDN/2016 for a 6.6470 Ha.

3. Based on IPPKH (Forestry Land Use Permit) issued in December 2016, the land that will

be opened for cluster J development in the protection forest area is 6.647 hectare which was

cultivated by 18 farmers and is a part of the 12.9 hectares of coffee plantation area. The area

has been cultivated by the farmers under Community-based Forest (HKm) scheme as part of

social forestry program. The Cluster J is located further north of Cluster I.

4. There are no feasible alternatives for the project to drill the wells outside the proposed

area, technically and economically as outlined in Section 3 of this report. The development of

cluster J is scheduled from January 2017 to October 2018 from the well pad infrastructure

preparation until the start up of the production. The process of Cluster J acquisition began with

socialization to the farmers who cultivated the 12.9 Ha of coffee plantation area followed by

the negotiations and payment of compensation for standing crops to the 18 farmers cultivated

inside Cluster J.

4. To fulfill one of the obligations under IPPKH, PGE already carried out handover of

replacement land to the Ministry of Environment & Forestry on June 6, 2016 for an area of

15.46 hectares in the village of Padang Cermin, Padang Cermin sub-district, Pesawaran

District, adjacent to Tanggamus District. After reforestation, the replacement land will then

become an additional forest area to the existing Wan Abdul Rachman Reg.19 Forest Park.

5. IPPKH permit also stipulates the obligation for PGE to safeguard post land acquisition

process such as the establishment of CSR program to continuously monitor the PAP and to

ensure PGE is always in contact with them.

6. As part of its responsibility to safeguard post land acquisition process, PGE establishes

community empowerment programs in the form of Corporate Social Responsibilities (CSR)

and Small Medium Enterprises Partnership Programs (SMEPP) activities. Other than positive

impacts of the farmers‘ livelihood, including those the ex-farmers of Cluster J, these activities

can prevent the protection forest from the possibility of new land clearing by communities living

in the surrounding project areas.The community empowerment programs also allows PGE to

have continuous contact with the ex-farmers of Cluster J.

7. The development of Cluster J will not involve significant conversion or degradation of

either critical or natural habitat based on the analysis of the direct impact of project footprint

to the overal land use and land cover map of the overall Bukit Rindingan area, using aerial

mapping by LIDAR and also based on the analysis of technology alternatives and field visit to

Addendum ESIA for Cluster J vii

the site. Hence, the development of Cluster J will not trigger OP 4.04 Natural Habitat,

consistent with the assessment in the Supplemental ESIA.

Addendum ESIA for Cluster J 1

1.0 INTRODUCTION

1. This document is an addendum to the Pertamina Geothermal Energy (PGE) Ulubelu Unit

3 and 4 Supplemental Environmental and Social Impact Assessment. This document herein

will be referred to as the ‘Addendum ESIA’. The original ESIA document, approved in

December 2011, will be referred to as the “Original ESIA” while the Supplemental ESIA that

was prepared since 2014 as the parent document of this Addendum will be referred to as

‘Supplemental ESIA’. The approval of Supplemental ESIA is awaiting the completion of this

Addendum. The main reason that caused the delay in finalizing the Supplemental ESIA

document is the confirmation to develop cluster J from related technical departments at PGE.

2. This Addendum ESIA will only focus on the additional information and assessment on

Cluster J which was stated in the Supplemental ESIA as the future cluster located in the

protection forest. According to the description in Supplemental ESIA, the steam generated

from this cluster will only support Unit 1 and Unit 2 which were funded by PGE, with no

definitive project schedule for development. However, based on PGE Letter No.

012/PGE110/2017-S0 dated March 3, 2017 to the World Bank, PGE confirmed that Cluster J

is prepared to be utilized as cluster for make-up wells of Unit 1 and 2 and the infrastructure of

the well pad is planned to be finished in Q3-2017. Cluster J will also be interconnected to Unit

3 and 4 geothermal power plant in addition to providing additional steam supply to Unit 1

and 2.

3. The permit for PGE to operate in protection forest to start the development of the Cluster

J was recently granted through the issuance of the Head of Capital Investment Coordination

Board (BKPM) Decree No. 105/1/IPPKH/PMDN/2016 on behalf of Ministry of Environmental

and Forestry concerning Forestry Land Use Permit (IPPKH) for PT. PGE for the area of 6.6470

hectares in Protection Forest in Tanggamus District, Lampung Province dated December 20,

2016.

4. This Addendum ESIA outlines the potential adverse and beneficial impacts and

addresses mitigations and management of environmental and social issues potentially

associated with Cluster J development and more detailed rationales for not triggering World

Bank OP/BP 4.04 Natural Habitat to be consistent with the Supplemental ESIA.

5. This Addendum ESIA will be divided into 6(six) sections:

a) Physical Location–This section describes project footprints versus Land Use Map

of Protection Forest, which provides information on Cluster J, and its supporting

activities, permitting requirements related to protection forest, and the overlay map

of project, as well as its activities with the different land uses and the real condition

in the field.

b) Technical Justification of Cluster J: This section describes justification on Cluster

J placement and the drilling technology alternatives.

c) Cluster J Project Schedule Update: This section describes estimated schedule of

Cluster J development.


d) Site Survey Results: This section provides the real condition of the existing ClusterJ

based on field visit and other supporting facts and documents.

e) Land Acquisition Implementation: This section provides information related to land

acquisition and the result of a tracer study to document the implementation of land

acquisition from the coffee plantation and the condition of farmers after relocation

from Cluster J.

f) Impact Mitigation Update of Cluster J for Ulubelu ESMP: This section describes

information on the potential changes in ESMP for any updated mitigation plans and

specific mitigation for potential impacts of Cluster J development (access control,

replantation and community awareness).

6. This Addendum ESIA documents the update and assessment of cluster J related to

natural habitat and land acquisition aspects to complement the Supplemental ESIA document.

Details are described in Appendix 1.

7. The Supplemental ESIA was compiled by an external consulant, Mott MacDonald, while

this Addendum ESIA was put together internally by a team in PGE that consists of GIS

specialist, engineering, SHE and Project Development. This Addendum, upon finalization and

after incorporating inputs and comment from relevant parties, shall accompany the

Supplemental ESIA document prior to upload into the PGE website.


2.0 PHYSICAL LOCATION

8. Ulubelu area is part of Gunung Way Panas, with the total size 89,280 hectares, one of

the Geothermal Concession Areas (Wilayah Kuasa Pengusahaan Sumberdaya Panas

Bumi/WKP) of PT Pertamina as stated in the Ministry of Energy and Mineral Resources

Decree No. 2067 K/MEM/2012, dated June 18, 2012. In the map below, WKP PGE refers

to the blue box at the bottom part of Sumatera Island.

9. Ulubelu is located within the administrative area of Tanggamus District, Lampung

Province, as seen in Figure 1 and Figure 2.

Figure 1. Ulubelu Location Map

10. Bukit Rindingan Protection Forest overall area is 6,690 hectares. Based on IPPKH, the

area that will be opened for cluster J is 6.6470 hectare (1/1,000 size of Bukit Rindingan

Protection Forest area) as part of 12.8685 hectares which had been cultivated by 18

(eighteen) farmers.


either critical or natural habitat based on the following information: (i) land use map, (ii)

site survey results showing that Cluster J is actually sited on the land already converted

to coffee plantation with no native plants and animal species in the area, (iii) proposed

project activities will not cause long-term change in land and water use and will not involve


massive land clearing, permanent flooding, or replacement of natural vegetation, (iv)

previous assessment by Mott McDonald ecologist in the Supplemental ESIA document

(see Section 5. Site Survey Results).

Figure 2. Ulubelu Location Map with Zoomed-in Cluster J


3.0 TECHNICAL JUSTIFICATION OF CLUSTER J

12. The main production well pads in Ulubelu field are heavily distributed at central and north

part of the field. The area has been occupied by densely “well trajectory” therefore new

additional production area in Cluster J is needed based on the technical and economical

feasibility. The Cluster is located further north of Cluster I which is inside the protection forest

area (see Fig 3. Overlay Map of Ulubelu Geothermal Area and Protection Forest). There are

no feasible alternatives for the project to drill the wells outside the proposed area, technically

and economically.

13. Cluster J location plays an important role to test the postulated upflow zone that is situated

within the area by performing delineation drilling, therefore the wells can be designated to be

make-up wells to maintain steam availability for Unit 1 and 2 Geothermal Powerplant. It is

likely that in the future, the reservoir in Cluster J may also serve to support the Unit 3 and 4

due to the nature of operation for interconnection.

Figure 3. Overlay Map of Ulubelu Geothermal Area and Protection Forest


4.0 CLUSTER J PROJECT SCHEDULE UPDATE

14. Cluster J development was started in January 2017 with the land clearing, road and well

pad preparation. Road and well pad construction is expected to be completed in September

2017, followed by J1 and J2 well drilling activities until January 2018. Production test is

scheduled in February-March 2018 and piping work as the subsequent activities will be

completed in October 2018. Afterwards, the operational activities will commence. Table 1

shows Cluster J Development Schedule.

Table 1. Cluster J Development Schedule


5.0 SITE SURVEY RESULTS

15. Field survey to the Cluster J development location was carried out by PGE and World

Bank Team in 2015 and recently in March 2017. This survey was intended to obtain

information on the existing environmental and social condition of Cluster J and its surrounding

area to ensure the consistency with the existing Supplemental ESIA. The survey was carried

out by visual observation and discussion/interview with the impacted local community and the

officer from the local forestry agency.

16. Based on Regional Spatial Plan, Cluster J and some sections of the access road are

located in the Bukit Rindingan Protection Forest in Tanggamus District, Lampung Province. A

Forestry Land Use Permit (IPPKH) for geothermal development was granted by the

Indonesian Ministry of Environment and Forestry through the Head of Investment Coordination

Agency (BKPM) Decree No. 105/1/IPPKH/PMDN/2016. The area of Cluster J and the access

road located inside the protection forest is 6.6470hectares (see Appendix 2 IPPKH and Figure

4 IPPKH Map).

Figure 4. Cluster J IPPKH Map


17. PGE already conducted aerial mapping (LIDAR) within Ulubelu area on December 2014.

The areal mapping of Cluster J is shown in Figure 5 and Figure 6.

Figure 5. Aerial Mapping

18. The aerial mapping shows that the land cover in Cluster J area is not occupied by big and

dense trees and is no longer a primary forest.

19. The field survey was performed on foot from the nearest drilling cluster (Cluster I) to

Cluster J with the distance ± 1 km. The access road to the cluster was not sited in protection

forest, instead it was the land owned by community. The coffee plantation could be seen along

the way to Cluster J and no threatened plant and animal species were observed (see

Figure 7).

20. The boundary of protection forest with other land uses (Area Penggunaan Lain/APL) was

indicated by white-red concrete markings, which were set up by the local forestry agency along

the way on the access road to Cluster J. The area around the markings was observed as the

coffee plantation (Figure 8).


Figure 6.Aerial Mapping - Cluster J Zoomed in

Figure 7. Pathway to Cluster J

Figure 10

Figure 9

Figure 8

Figure 7


Figure 8. Boundary Marker of Protection Forest withAccess Road. The cleared area is private

land/APL for access road

21. Similarly, in the proposed location of Cluster J, the whole area was converted to coffee

plantation by the local community under the HKm scheme. Approximately 50 metres further

beyond of the Cluster J, there was a small wood cabin which was built by the farmers for taking

a break or staying overnight when fostering the plantation.

Figure 9. Existing Environmental Conditionof Cluster J


Figure 10. Small Cabin North of Cluster J

22. This site survey confirmed the baseline data collection and assessment which were

conducted by Mott MacDonald in their December 2014 Ulubelu Unit 3 & 4 Supplemental ESIA

Report as summarized below:

With reference to Section 7.4.3.2 page 77, the majority of the survey area of the proposed

Cluster J comprises highly modified agricultural land. This habitat is dominated by coffee

plantations, but other cultivated species are also present including cocoa, guava, betel nut

and banana. The plantations are interspersed with scattered trees (forming stands no

greater than 1 hectare) which provide varying amounts of canopy cover. These trees are

generally introduced and provide agricultural benefit (e.g. through their fruit). This habitat

is not considered to be Natural Habitat and is of low ecological value.

The proposed Cluster J includes areas within the Hutan Lindung (protection forest) where

significant agricultural encroachment has led to the clearance of the original primary forest

for which it was designated. The survey shows that the forest has already been previously

cleared due to the wide-scale encroachment by local coffee farmers. Based on Section

7.4.4 and Section 7.4.6 page 84 and 87, the overall direct and indirect impacts of the

Project will therefore be negligible and as the construction and operation in Cluster J will

not lead to the loss of Natural Habitat or Natural Forest within the Project’s area of

influence, therefore OP4.04 and 4.36 will not be triggered.

From biodiversity point of view, no threatened plant or animal species (i.e. Vulnerable,

Endangered or Critically Endangered species on the IUCN Red List) were recorded in the

Hutan Lindung Project area. The proposed Project areas are coffee plantation, not Primary

Forest, and are thus botanically impoverished; no plant species of conservation interest

are present. The Sumatra and Peninsular Endemic Bird Area cites 20 target species (17

of which are endangered), however, all of these are associated with Primary Forest, of


which none occurs in the Project area. More detailed information can be found in

Supplemental ESIA Report Appendix C Ecology. Below is the map of Cluster J Habitats

indicating there is no threatened plant and animal species.

Figure 11. Cluster J Habitats

23. No cumulative impacts issue is anticipated as a result of environmental and social impacts

associated with the development of Cluster J. The valued environmental and social

components for cumulative impact assessment related to Cluster J development are the

watershed protection function of the protection forest and the potential encroachment of the

protection forest further by the 18 farmers who received the compensation. However, the

magnitude and the scale of potential impacts are not significant, diverse and unprecedented

indicated by the aerial mapping comparison and site survey.

24. The associated facility related to Cluster J development is the access road by which the

mitigation measures correspond to the future potential impact due to open access have been

described in Section 7.


6.0 LAND ACQUISITION IMPLEMENTATION

25. Cluster J is located in protection forest area that has been cultivating by the farmers under

Community-based Forest (HKm) scheme.

26. Community-based Forest is one of the schemes under Social Forestry (Perhutanan

Sosial) of the Ministry of Environment and Forestry applied to the forest that already converted

as cultivation land by the community to reduce the deforestation level in Indonesia by involving

communities in which the ultimate goal is to empower them in the forest area. The

empowerment should be considered as the measures to increase their ability and self-

sufficiency to utilize the forest resources optimally and impartially through the capacity building

and access to the welfare.

27. HKm permit holders in both protection and cultivation blocks must protect the area from

illegal logging, fires, cattle, and other threats. These requirements are interpreted on a local

basis by the relevant provincial and regency level governments. Following consultation with

the Lampung Province Forestry Office, it is understood that HKm permit holders must plant at

least 400 trees per hectare, although these can be of any species. In this case communities

cultivate coffee trees.

28. It is important to note that HKm areas are not related to IPPKH permits. IPPKH permits

apply only to the use of land in the protection forest for the purposes described in Section

3.3.2 above. Any areas within the protection forest that are also designated as HKm are not

differentiated from non-HKm land in the IPPKH permit.The process of Cluster J clearing begins

with socialization to the farmers, followed by the negotiations to agree on the compensation

of standing or growing crops to be paid by PGE.

29. Socialization and negotiations on the farmer groups in Cluster J have been done by PGE

on March 13, 2017, witnessed by Protection Forest Management Unit (KPHL) Batutegi officers

and Chief of Pekon Ngarip, housed in Pekon Ngarip Tanggamus. (see Appendix 3)

30. In general, the result of socialization and agreements are:

1. PGE has had SK IPPKH and authorized by the state to open land in Cluster J.

2. PGE provides compensation for standing crops to the farmers in Cluster J with a

maximum value of Rp. 15.000, - per tree with a note that trees listed in the report of

Technical Assistant Team (GANIS) Lampung Province will not be compensated.

3. Compensation payment to the farmers will be transfered to Bank BRI.

4. The farmers agreed and accepted the compensation value and number of crops.

5. PGE and farmers would follow the appropriate tax rules applicable legislation.

31. The calculation of the number and price assessment standing & growing crops conducted

by Tim GANIS that has a certificate Appraisal of the Ministry of Environment and Forestry.

However, the final compensation value was mutually agreed between PGE and farmer groups.


32. Area Cluster J consisted of 18 (eighteen) plots of land cultivated by farmers who came

from Pekon Ngarip and Pekon Karang Rejo. Some plots throughout its range is opened and

used for Cluster J, but some are only partially used for Cluster J.

33. The farmers generally utilize cash compensation from PGE to improve their welfare,

either by opening a new business or improve ongoing business / livelihood.

34. Here is a list of farmers of plots in Cluster J, origin / residence, extensive cultivation land,

as well as satisfaction with the compensation and livelihood or a new venture that developed

after receiving compensation from PGE.

No. Name Origin/

Residence

Land area for Cluster J (m2) /

Land owned land (m2)

Level of Satisfacti

on

Utilization of compensation fund

1. Mesran Pekon Ngarip 2.458 / 2.458 Satisfied Breeding (10 goats)

2. Sarwo Pekon Karang

Rejo 143 / 2.500 Satisfied

Maintenance of existing farm (fertilizer, etc.)

3. Gunandar Riyadi-1 Pekon Karang

Rejo 3.425 / 3.425 Satisfied Vegetables farming

4. Gunandar Riyadi-2 Pekon Karang

Rejo 3.920 / 3.920 Satisfied Vegetables farming

5. Sular Pekon Ngarip 9.497 / 9.497 Satisfied Maintenance of existing farm (fertilizer, etc.)

6. Sulino Pekon Ngarip 7.560 / 7.560 Satisfied Meatballs stall

7. Yatiman Pekon Ngarip 4.793 / 4.793 Satisfied Maintenance of existing farm (fertilizer, etc.)& home renovation

8. Murjiyem Pekon Ngarip 1.675 / 9.500 Satisfied Breeding (5 goats)

9. Nyoto-1 Pekon Ngarip 672 / 672 Satisfied Maintenance of existing farm (fertilizer, etc.)

10. Nyoto-2 Pekon Ngarip 1.195 / 5.000 Satisfied Maintenance of existing farm (fertilizer, etc.)

11. Nyoto-3 Pekon Ngarip 3.309 / 10.000 Satisfied Maintenance of existing farm (fertilizer, etc.)

12. Katino Pekon Ngarip 4.083 / 4.083 Satisfied Grocery store & Breeding (5 Goats)

13. Parman Pekon Ngarip 6.093 / 20.000 Satisfied Grocery store

14. Salimin Pekon Ngarip 547 / 10.000 Satisfied Maintenance of existing farm (fertilizer, etc.)

15. Danuri Pekon Ngarip 925 / 5.000 Satisfied Maintenance of existing farm (fertilizer, etc.)

16. Amin Pekon Ngarip 2.612 / 5.000 Satisfied Breeding (catfishes)


No. Name Origin/

Residence

Land area for Cluster J (m2) /

Land owned land (m2)

Level of Satisfacti

on

Utilization of compensation fund

17. Suroso Pekon Ngarip 13.277 / 13.277 Satisfied Maintenance of existing farm (fertilizer, etc.)

18. Salamudin Pekon Ngarip 463 / 12.000 Satisfied Maintenance of existing farm (fertilizer, etc.)

Table 2. Farmers Vs Utilization Of Compensation Fund

35. Government and Relations Department (Hupmas) and all employees of PGE Area

Ulubelu are public relation agents who can receive grievance, complaints, dissatisfaction, or

demands of the residents around the area of the operation of PGE Ulubelu.

36. PGE Organizational Working Procedures No. B-006/PGE520/2016-S0 on External

Conflict Management becomes a platform regulation to review grievance or dissatisfaction of

the farmers in respect with Cluster J opening process and compensation scheme.

37. PGE so far has not received any complaints or dissatisfaction of the farmers.Even entire

ex-farmers of Cluster Jwho received compensation stated their satisfaction against the

replacement process and the amount of compensation received.

38. Cluster J has obtained the Forestry Land Use Permit by the Head of Investment

Coordinating Board (Kepala BKPM) Decree No. 105/1/IPPKH/PMDN/2016 on Forestry Land

Use Permit for Development of Geothermal on behalf of Ministry of Environmental and

Forestry for PT PGEcovering an area of 6.6470 hectares at protection forest areas in

Tanggamus, Lampung.

39. Rights and obligations of PGE as the holder of IPPKH is stated in the clause in the IPPKH

Decree mentioned above.

40. PGE has fulfilled its obligations:

- Implemented the boundaries of the area of forestry land usepermit, with realization of

6.6470 hectares;

- Submitted the Deed of Ability Statement;

- Provided replacement land;

- Carried out measurement and mapping of replacement land;

- Submitted replacement land;

- Delivered reclamation and revegetation plans to use the forest areas.

41. Based on the decree, PGE is eligible to:

a. Occupy, manage and undertake activities that include geothermal development and

other related activities in the IPPKH area.

b. Utilize the results of activities undertaken related to the development of geothermal

and its support in the IPPKH area.

c. If inevitable, cut down trees by paying Provision of Forest Resources (PSDH) and/or

Reforestation Fund (DR).

d.


42. PGE declared mandatory:

a. Complete the boundaries of land compensation.

b. Carry out reforestation of replacement land.

c. Make plans and implement reclamation & revegetation on unused forest areas.

d. Carry out stock inventory.

e. Pay PSDH and / or DR.

f. Pay compensation for the rehabilitation plant stands.

g. Reimburse the investment cost of forest management / utilization to the manager /

holder of forest product utilization permit.

h. Conduct maintenance of IPPKH area boundary.

i. Protect forests on IPPKH areas.

j. Secure Conservation Forest Area and Protection forest Area bordering IPPKH area.

k. Supportthe Environment & Forestry officers at the time of evaluation & monitoring.

l. Coordinate activities to local Environmental & Forestry agencies.

m. Conducting community empowerment around IPPKH area.

n. Make a report periodically every 6 (six) months to the Minister of Environment &

Forestry

The report includes:

i) Plan & realization of forest area utilization;

ii) Plan & realization of reclamation & revegetation;

iii) Plan & realization of reforestation of replacement land;

iv) Fulfillment of other obligations under IPPKH.

43. The Decree mentions that if in the area there are the rights of third parties, the settlement

is the responsibility of PGE. In this, the third party was the 18 farmers cultivated the Cluster.

44. Status until April 2017 are as follows:

1. Warrant for payment of PSDH, DR and PNT Ulubelu has not yet been issued by

Forestry Agency of Lampung Province so that no payment has been made (point e). It

is expected that by August 2017 Forestry Agency of Lampung Province will issue the

warrant therefore PGE can make the payment.

2. Since there are no rehabilitation plants in Cluster J, PGE does not need to pay

compensation to Forestry Agency of Lampung Province (point f).

3. Fulfillment of the obligations in point hton will be reported semi-annually through the

online system of Ministry of Environment & Forestry. Considering that IPPKH was just

issued in December 2016, the first report will be submitted in the first semester (July)

of 2017.

45. One of the obligations of PGE in obtaining IPPKH ofCluster J is providing the

replacementland. Based on Minutes No. 044/PGE000/2016-S0 and No. BA.50/MenLHK-

PKTL/REN/PLA.0/6/2016 dated June 6, 2016, replacement land has been handed over by

PGE to the Ministry of Environment & Forestry for an area of 15.46 hectares located in the

village of Padang Cermin, Padang Cermin Sub-District, Pesawaran District, adjacent to

Tanggamus District.

46. The replacement land was recommended by Bupati Pesawaran based on PGE Proposal.

The land has gone through technical and legal assessment of the Forestry Agency of


Lampung Province and has been approved by Director General of Forestry Planning &

Environmental Management on behalf of the Minister of Environment and Forestry.

47. Currently, the replacement land is a bushland which after reforestation will then become

an additional forest area to the existing Wan Abdul Rachman Reg.19 Forest Park.


7.0 IMPACT MITIGATION UPDATE OF CLUSTER J FOR ULUBELU ESMP

48. Based on the site survey results and the aerial mapping using LIDAR it was observed

that the project of Cluster J development does not result in significant conversion of natural

habitat and hence does not need to trigger OP 4.04. Nonetheless, in line with the permit

requirements of IPPKH, several recommendations to protect the function of protection forest

for watershed service will be fully complied by PGE. Other mitigation efforts are described

below.

49. To get to Cluster J, a new access road has been develop through Cluster I in the south.

This new access road has the potential to be utilized by communities to enter their lands in

protection forest areas. To prevent induced impacts from other interest such as illegal logging,

cutting, and forests burning, as well as wild life hunting, PGE will install portal on the access

road of Cluster I. In addition, along the access roads and nearby the border of protection

forest area, PGE will install warning and restrictions signs. Coordination will be conducted with

local forestry agencies for the activities above with PGE funding during the IPPKH period.

50. In accordance with IPPKH issuance of the 6.6470 hectares of Cluster J in protection

forest area, PGE has awarded a replacement land of 15.46 hectares in Padang Cermin

Village, Padang Cermin Sub-district, Pesawaran District for reforestation and land

rehabilitation.

51. PGE is required to make plans and to carry out reclamation and revegetation, both on

unused forest areas in Cluster J and on replacement land. This is stated as a liability in IPPKH.

52. Other obligation that must be implemented by PGE is conducting community

empowerment around IPPKH area. This has become a program of Corporate Social

Responsibility (CSR) and Small Medium Enterprise and Partnership Program (SMEPP). One

of which is the breeding of the Saburai goat (endemic) in Pekon Ngarip, where 15 of 18 farmers

of Cluster J are living. Other than positive impacts of the farmers‘ livelihood, these activities

can prevent the protection forest from the possibility of new land clearing by residents living in

the surrounding areas. (See Table 3. CSR Program and Table 4. SMEPP Activities).

53. All the mitigation efforts above will be monitored and funded by PGE Area Ulubelu (HSSE,

Government and Relations) in coordination with PGE Head Office.


Table 3. Corporate Social Responsibility Program PGE Ulubelu site.

No. CSR Program Location

1. Training of elementary school teachers in Kecamatan Ulubelu

Pekon Datarajan, Air Abang, Gunung Tiga, Karang Rejo, Pagar Alam, Muara Dua, Ngarip, Sukamaju

2. Green School SDN Pagaralam Pekon Pagar Alam,

3. Improvement of Posyandu activities and facilities Pekon Ngarip

4. Plantation in schools and locations around the operation area

Pekon Datarajan, Air Abang, Gunung Tiga, Karang Rejo, Pagar Alam, Muara Dua, Ngarip, Sukamaju

5. Cultivation of freshwater fish Pekon Datarajan dan Ngarip

6. The development of coffee flavored cassava bread Pekon Ngarip

7. CSR Program monitoring & evaluation (per two years) Pekon Datarajan, Karang Rejo, Pagar Alam, Muara Dua, Ngarip,

8. Community institutional strengthening program in Ulubelu Pekon Ngarip

Table 3. CSR Program

No. SMEPP Activities Location

1. Clean water facilities aid Villages around project area

2. Development of Pelangi Waterfall Tour Pekon Sukamaju

3. Development of Srikandi Coffee Farmers Group Pekon Ngarip

4. Saburai goat breeding Pekon Ngarip

Table 4. SMEPP Activities


8.0 CONCLUSION

54. This addendum is intended to provide additional information to the Ulubelu Unit 3&4

Supplemental ESIA with regards to Cluster J development which is now confirmed for

construction in order to fulfill steam supply requirement for Unit 1 & 2 that can be

interconnected with Unit 3 & 4. Specifically this addendum focus on the potential impacts from

construction to the protection forest area and on the land acquisition aspect.


either critical or natural habitat based on the following information: (i) land use map, (ii) site

survey resultsshowing that Cluster J is actually sited on the land already converted to coffee

plantation with no native plants and animal species in the area, (iii) project activities that will

not cause long-term change in land and water use, will not involve massive land clearing,

permanent flooding, or replacement of natural vegetation, (iv) previous assessment by Mott

McDonald ecologist in the Supplemental ESIA.

56. Land acquisition has been well implemented in which the 18 farmers of Cluster J were

compensated satisfactorily and fully complied with the Bank’s policies and Government

regulations.

area ulubelu cluster-j - world bank...sk : surat keputusan (decree) smepp : small medium enterprises...

Documents