Geothermal Power Generation Project (RRP INO 52282)

Safeguards Due Diligence Report

Project No: 52282-001 November 2019

Proposed Loan and Administration of Technical Assistance Grant Geothermal Power Generation Project

Patuha-2 Expansion Subproject Prepared by PT Geo Dipa Energi for the Asian Development Bank. This Safeguards Due Diligence Report is a document prepared by PT Geo Dipa Energi as a borrower. Policies in this document are formulated after receiving input from various parties associated with land acquisition policy and resettlement in Indonesia and do not reflect the views of the Board of Directors, Management, or staff of Asian Development Bank. This document can be viewed in full on the website of the Asian Development Bank in the "Terms of Use". In preparing the program, strategy, project funding, or by using the name or reference to a particular territory or geographic area in this document, the Asian Development Bank will not make any judgment on the legal or other status of any territory or area.

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CURRENCY EQUIVALENTS (as of 14 November 2019)

Currency unit – rupiah (Rp) Rp 1.00 = $ 0.0000709 $ 1.00 = Rp.14,113.00

ABBREVIATIONS ADB Asian Development Bank

AHs Affected Households

AMDAL Analisa Mengenai Dampak Lingkungan (Environmental Impact Analysis)

APs Affected Persons

CAP Corrective Action Plan

CSR Corporate Social Responsibility

DDR Due Diligence Report

EA Executing Agency

GoI Government of Indonesia

GPGP Geothermal Power Generation Project

GRM Grievance Redress Mechanism

IPPKH Izin Pinjam Pakai Kawasan Hutan

KATR/BPN Kementerian Agraria dan Tata Ruang/Badan Pertanahan Nasional (Ministry of Agrarian and Spatial Planning/National Land Agency)

MAPPI Masyarakat Profesi Penilai Indonesia (Indonesia Appraiser Profession

Society PIB Project Information Booklet

PTPN PT. Perkebunan Nusantara (State Owned Plantation Entreprise)

MOF Ministry of Finance

MOFE Ministry of Forestry and Environment

MSOE Ministry of State Owned Entreprise

NGO Non-government organization

RCS Replacement Cost Study

SES Socioeconomic Survey

SIA Social impact Assessment

SPS Safeguard Policy Statement

NOTES

In this report, "$" refers to US dollars.

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TABLE OF CONTENTS CURRENCY EQUIVALENTS ................................................................................................................... I ABBREVIATIONS .................................................................................................................................... I TABLE OF CONTENTS .......................................................................................................................... II LIST OF FIGURES ................................................................................................................................. III LIST OF TABLES ................................................................................................................................... III I. INTRODUCTION ............................................................................................................................. 1

A. BACKGROUND ............................................................................................................................... 1 B. SUB-PROJECT DESCRIPTION .......................................................................................................... 2

II. DUE DILIGENCE PURPOSE AND METHODOLOGY ................................................................... 3 III. NEEDS AND IMPACTS LAND ACQUISITION (PAST AND PRESENT) ....................................... 4

A. LAND AVAILABILITY ........................................................................................................................ 7 B. LAND ACQUIRED AND LEASED FROM PT. PERKEBUNAN NUSANTARA VIII RANCABOLANG .................. 8

1. Land acquired and Leased from PTPN VIII Rancabolang ...................................................... 8 2. Workers’ Access to PTPN VIII Rancabolang Tea Plantation ................................................ 11 3. Extension of Land Lease from PTPN VIII Rancabolang ....................................................... 12

C. PROTECTION FOREST LAND LEASED FROM PT PERUM PERHUTANI (IPPKH) .................................. 12 1. Loc V and Loc G – Land Use Permits (IPPKH) ................................................................... 12 2. Location BB (well pads, access road, pipelines) – IPPKH yet to be obtained ...................... 14

IV. CONSULTATION AND GRIEVANCE REDRESS MECHANISM ................................................. 16 V. ESTIMATED BUDGET FOR LAND LEASE AND IPPKH ............................................................. 20 VI. INSTITUTIONAL ARRANGEMENTS ............................................................................................ 21

A. INSTITUTIONAL ARRANGEMENTS ................................................................................................... 21 B. CAPACITY BUILDING .................................................................................................................... 24

VII. COMPLIANCE ASSESSMENT..................................................................................................... 25 VIII. MONITORING & EVALUATION ................................................................................................... 29 IX. CORRECTION ACTION PLAN ..................................................................................................... 30

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LIST OF APPENDICES

APPENDIX 1 Ministry of SOE and MOF Approval on Release of PTPN VIII’s Land to GDE for Geothermal Development Facilities; Agreement between PTPN VIII and GDE on Acquisition of PTPN’s Land to be Used for Geothermal Development Facilities ........................................... ………36

APPENDIX 2 Certificate of Location W, Location A and One Certificate Covering Loc U, Power Plant, Transmission Line And Substation ....................................................................................... 44

APPENDIX 3A Addendum To Collaborative Agreement Between PT. Perkebunan Nusantara VIII (Persero)and PT Geo Dipa Energi Regarding Lease Of A Part Of The HGU Land of the Rancabolang Plantation No. Add/IV.I/365/IV/2013 ................................................................ 52

APPENDIX 3B Letter from GDE Director to PLN VIII Rancabolang Regarding Propose Extention Of Plantation Land Leasing ........................................................................................................ 61

APPENDIX 4 Ministry of Forestry Decree on the Land Use Permit Covers Loc V and loc G, Ministry of Forestry Decree NO. S.287/MENHUT VIi/2005 ; Ministry of Forestry Decree NO. S.368/MENHUT VII/2007; Ministry of Forestry Decree No. S.257/MENHUT VII/2010; Ministry of Forestry Decree No. s.306/MENHUT VII/2012 .................................................... 63

APPENDIX 5 Ministry Of Forestry Decree On The Dispensation Permit Covers Loc V And Loc G .......... 73 APPENDIX 6 Minutes Of Hand Over Of Replacement Land From Gde To Provincial Forest Agency

............................................................................................................................................. ..80 APPENDIX 7 Ministry Of Forestry Decree No SK 60/MENHUT II/2011 Dated 30 November 2011 On The

Appointed Replacement Land To Be Protected Forest Ministry Of Forest Decree No. SK. 765/MENHUT-II/2013 On The Designated Of Repacement Land As Protected Forest ....... 84

APPENDIX 8 Receipt Of Payment Reforestation Fee Receipt Compensation For Affected Trees On The Propose Protected Forest Receipt Payment Of Investment Cost To Provincial Forest Agency ............................................................................................................................................... 91

APPENDIX 9 Timeline For Processing Ippkh (Forestry Permit) For Use (Pinjam Pakai) Of Protection Forestry Land For Proposed Wellpad 9 At Loc Bb And Proposed Row For New Pipeline And Inspection Road From Loc BB To Loc G .............................................................................. 96

APPENDIX 10 Minute Of Coordination Meeting Between GDE And Perhutani Site Reconnaisance Photos ............................................................................................................................................... 98

APPENDIX 11 Minutes Of Meeting Of Public Consultations 18 – 19 March 2019 ................................... 102 APPENDIX 12 Summary Of Stakeholder Consultations 9-17 September 2019 ...................................... 108 APPENDIX 13 Objective, Trigger, And Principles Of Involuntary Rersettleemnt Safeguards .................. 119 APPENDIX 14 Draft Of Project Information Booklet ................................................................................. 125

LIST OF FIGURES

Figure 1-1: Power Plant & Surface Facilities for Patuha-2 Expansion Sub-projectError! Bookmark not defined. Figure 3.2 Patuha 2 Field Lay out. Light blue lines represent existing pipelines; yellow lines for new

pipeline / access road corridors ............................................ Error! Bookmark not defined. Figure 4-1 Grievance Redress Mechanism .......................................................................................... 18 Figure 6-1: Organizational Structure for Project Implementation............ Error! Bookmark not defined.

LIST OF TABLES

Table 1: Number of Participants in Dieng (11-13 September 2019) ................................................... 110 Table 2: Number of Participants in Patuha (16-17 September 2019) ................................................. 110 Table 3: Number of Participants in the Dieng Second Public Consultation ........................................ 113 Table 4: Number of Participants in 1st public consultation (Dieng, March) ........................................ 115 Table 5: Number of Participants in: 1st and 2nd public consultation (Dieng) ..................................... 115 Table 6: Number of participants in the 2nd public consultation (Patuha) ........................................... 116 Table 7: Number of participants in the 1st public consultation (Patuha, March) ................................ 116 Table 8: Number of participants in the 1st public consultation (March 2019) and 2nd public

consultation (September 2019) in Patuha ........................................................................... 117

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I.Introduction

A. Background

1. The Republic of Indonesia has the world’s largest geothermal potential, estimated at 29,000 MW. Since the issuance of the Geothermal Law in 2003, the Government of Indonesia (GOI) has prioritized development of this resource. As of January 2019, the installed capacity of geothermal energy in Indonesia was 1,948.5 MW. In the RUPTL1, the government plans for an additional 4,443 MW of installed geothermal capacity by 2027. The government also intends for state-owned enterprises, such as PT PLN (Perusahaan Listrik Negara – State Electricity Company) and PT Geo Dipa Energi, to play an important role in sustaining geothermal growth in the near term

2. PT Geo Dipa Energi (GDE) is a state-owned geothermal company focused on exploration and development of geothermal resources. GDE currently operates a 60 MW power plant at Dieng in Central Java and a 59 MW plant at Patuha in West Java, which were transferred to GDE after commissioning and after drilling, respectively. In the near term, GDE plans to commission additional units at Dieng and Patuha, which are proposed to be financed under the Project.

3. The Asian Development Bank (ADB) will provide a loan to GDE to support expanded geothermal electricity generation in Java to increase renewable energy baseload and reduce Indonesia’s reliance on coal. The proposed Geothermal Power Generation Project (GPGP) will provide financing for expanding geothermal power generation via two sub-projects: i) Dieng 2: expansion of geothermal electric generating capacity by 60 MW at the Dieng

geothermal plant. and ii) Patuha 2: expansion of geothermal electric generating capacity by 59 MW at the

Patuha geothermal plant. The project will include the following for each sub-project: (a) work over of existing wells and drilling of new wells for geothermal fluid production and re-injection, (b) construction of fluid collection and re-injection systems, (c) power plant, and (d) transmission inter-connection systems. The project will additionally support capacity development of GDE, including the development and implementation of a safety and health plan at the facilities and increased experience with contracting and management.

4. The Dieng sub-project faces technical challenges and high-density of farming activities whilst the Patuha sub-project is nearby to protected forest. As part of ADB’s assistance, the project will enhance health, safety, emergency planning, and livelihood opportunities for nearby communities. If forest clearing in a critical habitat is necessary, the project will ensure that no measurable adverse impacts will lead to an impairment of its high biodiversity value from forest clearing in critical habitat. These activities will serve as an example for how Indonesia’s geothermal resource in similar geographic contexts can be developed without detriment to the existing surroundings. The proposed attached technical assistance (TA) will support improved livelihood activities in nearby communities and integration of appropriate gender measures.

1 Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) 2018–2027 (Electricity Power Supply Business Plan 2018–2027).

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5. The Patuha-2 sub-project has been categorized as C for involuntary resettlement (viz. no impacts). As such, no Resettlement Plan is required. However, social safeguards due diligence needs to be conducted to determine that previous actions related to social safeguards were in accordance with ADB’s safeguards principles and requirements, and to identify and plan appropriate measures to address any outstanding compliance issues. The action plan will define remedial / corrective action, the required budget, time frame, and responsible parties for resolution of compliance.

B. Sub-project Description

6. GDE’s geothermal plant in Patuha is located in the mountain area of Ciwidey Sub-district (Kecamatan), Bandung Regency (Kabupaten), West Java Province. Patuha was initially developed in 1996-1998 by Patuha Power Limited (PPL, a wholly owned company of CallEnergy, USA). CallEnergy exited Indonesia in 1999, and the Patuha field was taken over by GDE in 2002. In 2014 GDE commissioned Patuha Unit 1 Power Plant using the well that CallEnergy drilled. Space and facilities for the Patuha Unit 2 Power Plant and electrical connection have already been provided as part of Patuha Unit 1 construction.

7. Figure 1 presents a lay-out map of the proposed Patuha-2 sub-project. The expansion of the existing geothermal facilities (Patuha-2 sub-project) will consist of the following components: i) construction of a new power plant - Patuha Unit 2 (Loc GPP); ii) the drilling of 11 new wells:

a) 9 new wells will be drilled in existing wellpads viz. Wellpad 4 (Loc G), Wellpad 5 (Loc W), Wellpad 7 (Loc V) and Wellpad 6 (Loc U), and

b) 3 new wells will be drilled in a new (proposed) wellpad - Wellpad 9 (Loc BB); iii) construction of new gas pipelines

a) from Wellpad 9 (Loc BB) to Wellpad 4 (Loc G) to the new power plant, and b) from Wellpad 5 (Loc W) to Wellpad 7 (Loc V) to Wellpad 6 (Loc U) to the new power

plant; iv) construction of a condensate line from the new power plant to existing Wellpad 1 (Loc A);

and v) addition of a new transformer at the existing Patuha Substation approximately 200 m from

the power plant.

8. The existing Patuha power plant complex and Patuha-2 expansion sub-project area are quite isolated from the residents. Several GDE power plants are located in the border area that cannot be traversed by residents. Security personnel guard the complex around the clock

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Figure 1. Power Plant & Surface Facilities for Patuha-2 Expansion Sub-project

II. Due Diligence Purpose and Methodology

9. The purpose of the social safeguards due diligence is to assess project / sub-project preparation or implementation activities to date with respect to applicable national policies / procedures, Implementing Agency’s Standard Operating Procedures, and the ADB SPS, 2009 concerning social safeguards, based on information received, site observation, and interviews with affected people and other key stakeholders. More specifically, this due diligence

i) will assess the likely social impacts and mitigation measures adopted by the project with respect to land acquisition, compensation and involuntary resettlement, and communal properties, if any, in terms of displacement, loss of incomes, and community links;

ii) will ascertain, in case of any adverse impact(s), if appropriate mitigation measures have been taken during the project planning, designing and frameworks established for carrying out safeguard measures during the implementation stage to minimize and mitigate such if any adverse impacts.

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10. Based on preliminary social safeguards site reconnaissance (involuntary resettlement and indigenous peoples screening and categorization2), it was determined that no involuntary impacts are foreseen but Due Diligence may be required.

11. As such, this social safeguards / resettlement due diligence report (DDR) has been prepared for the Patuha-2 sub-project to (i) identify past social impacts from previous land acquisition and (ii) examine any outstanding issue(s) that emerge during consultations

12. The methodology used for the due diligence assessment was as follows:

i) Documents review - Secondary data (includes available official land records) collection and analysis from GDE Team.

ii) Site visit - Together with GDE team, National Social Safeguard Consultant conducted a site visit from 1-2 July 2019. Consultations/interviews with GDE HQ (business development, GA, Corporate Sectretary) and GDE Patuha ( HGCA staff and Procurement Section)

III. Needs and Impacts Land Acquisition (past and present)

13. The proposed Patuha-2 sub-project will traverse three villages (see Table 1).

Table 1. Villages traversed by Patuha-2 sub-project components

Kabupaten (District / Regency)

Kecamatan (Sub-district)

Desa (Village)

Bandung Ciwidey Panundaan

Bandung Rancabali Alamendah

Bandung Pasir Jambu Sugihmukti

14. Land requirements for the Patuha-2 sub-project components are provided in Table 3-2. Most of the land required for the sub-project is already owned by GDE. An additional 35,000 m2 (or 3.5 ha) needs to be acquired. Table 2 indicates components which will be constructed on GDE-owned land. Table 3-2 also indicates that additional land to be acquired for (i) Wellpad 9 (Loc BB), and (ii) right-of-way (ROW) for new pipeline and inspection road between Wellpad 9 (Loc BB) and Wellpad 4 (Loc G) are located in protection forest area for which the required permits (IPPKH3) from Perum Perhutani for use (pinjam pakai) of forest land will be processed. There will no involuntary resettlement impacts - no privately-owned land or assets will be affected; no people will be affected. Plantation workers still have access to their workplace (tea gardens and factory).

2 Based on screening and categorization instruments provided in ADB SPS, 2009. 3 IPPKH – Izin Pinjam Pakai Kawasan Hutan (Permit or License to borrow and use State forest area)

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Table 2. Summary of Area and Status of Land Needed for Patuha-2 Expansion Facilities

No

COMPONENT

Location Land Status

Acquired/ Leased

Document Required Area Total Area

as per Certificate

/ IPPKH

Remarks

Location Well Type

Available / Not yet

Length

(m)

Width

(m)

Area (m2)

1 Transmission Line

PTPN VIII Rancabolang

Acquired In 2006

• Approval letter to release HGU from PTPN to GDE issued by SOE Ministry

• Letter of release HGU from PTPN to GDE

• Receipt payment of compensation

• Certificate of the land

Available

151,650 m2

Certtificate No : HGB

00015

Will use existing TL

2 Power Plant Available

3,178. 54

To be built near existing power plant

3 Sub-station PLN/ PTPN VIII

Rancabolang

Acquired Available

4 Well pad 4 Loc U PTH-6A, 6B

PTPN VIII Rancabolang

Acquired In 2006

Available

Loc A PTH-1C PTPN VIII Rancabolang

Acquired in 2006

Available

21.290 m2 Certtificate No : HGB

00014

Loc W PTH-5A PTPN VIII

Rancabolang Acquired in 2006

Available

16.685 m2 Certtificate No : HGB

00006

Loc V PTH-7A,

7B Protected

Forest

Leased Land Use

Permit (IPPKH) valid until 2037

Available

63.070 m2

IPPKH

Loc G PTH-4B,

4C, 4D Protected

Forest

Leased Land Use

Permit (IPPKH) valid until 2037

Available

45.990 m2

IPPKH Loc BB PTH-9,

9A, 9B Protected

Forest Not yet None Not yet 25,000 Processing of new

IPPKH will commence in October 2019. Estimated

4 Area needed for well pad standard hole drilling was 100 x 100 m = 10,000 m2.(includes ponds and rig area); area needed for production or injection well was 3 x 3 x 6 m = 54 m2

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No

COMPONENT

Location Land Status

Acquired/ Leased

Document Required Area Total Area

as per Certificate

/ IPPKH

Remarks

Location Well Type

Available / Not yet

Length

(m)

Width

(m)

Area (m2)

completion data for process – end 2021.

5 Pipeline & access road

Loc A to Loc W

PTPN VIII Rancabolang

Leased Leasing Agreement

45,691m2 Leasing agreement with PTPN VIII Rancabolang will expire in 2020. In the process of being extended for another 10 years.

Loc W to Loc V

PTPN VIII Rancabolang/ Protected

Forest

Leased Leasing Agreement/

IPPKH

Loc U to Loc GPP

PTPN VIII Rancabolang

Leased Leasing Agreement

Loc GPP to Loc G

PTPN VIII Rancabolang/ Protected

Forest

Leased Leasing Agreement/

IPPKH

Loc G to Loc BB

Protected Forest

No None Not yet 10,000 Processing of new IPPKH will commence in October 2019. Estimated completion data for process – end 2021.

Total additional land to be acquired/lease 35,000

Source: FS for Patuha and Dieng Expansion per 8 August 2019.

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15. The proposed Patuha-2 expansion involves acquisition of additional land for three new well pads (PTH 9, 9A and 9B), access roads, and steam pipelines5. There will also be drilling of 9 new wells in existing well pads which will not entail land acquisition6. Land to be leased for project expansion components are located in protected forest under the jurisdiction of PT Perhutani. There are no people residing or using the forest to farm or build livelihoods. The Patuha-2 field lay-out is shown in Figure 2 below.

Figure 2. Patuha 2 Field Lay out. Light blue lines represent existing pipelines; yellow lines for new

pipeline / access road corridors

Source: Feasibility Report for Patuha-2.

A. Land Availability

16. Columns 6 and 12 of Table 3-2 indicate availability of land for the Patuha-2 sub-project.

A. Land acquired and leased from PTPN VIII Rancabolang. Land acquired (since 2004), and

leased from PTPN VIII Rancabolang (since 2010) for the existing Patuha Power Plant complex is available and sufficient for construction of the following proposed Patuha-2 sub-project components:

(i) Proposed Patuha-2 power plant. (ii) Transmission lines from proposed power plant (Loc GPP) to sub-station. (iii) Four proposed new wells at Loc U, Loc A and Loc W.

5 See yellow line in Figure 3.2. 6 All land acquired is land that belongs to two Government-linked corporations (PT Perkebunan

Nusantara VIII Rancabolang and PT Perhutani). Leasing agreement and acquisition back up for PTPN VIII land have been obtained completely. Land use permit (Ijin Pinjam Pakai Kawasan Hutan-IPPKH) for Loc V and Loc G were obtained in 2013

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(iv) New pipeline from Loc A to Loc W, a segment between Loc W and Loc V7, from Loc U to Loc GPP (Patuha-2 power plant), and a segment between Loc G to Loc GPP.

B. Land leased from the PT Perum Perhutani. Land leased from PT Perum Perhutani for the

existing Patuha Power Plant Complex is available/sufficient for construction of the following components:

i) Five proposed new wells at Loc V and Loc G. ii) New pipeline segments between Loc W and Loc V, and between Loc G and Loc

GPP (Patuha-2 power plant)

C. Land to be acquired. Land to be acquired is for two components: (i) Proposed new wellpad (for 3 new wells) at Loc BB, and (ii) proposed new right-of-way (ROW) for new pipeline and access road from Loc BB to Loc G. The location of both these components is in protection forest. The required land can be leased from Perum Perhutani. An IPPKH permit will be processed.

Description of sub-project components implementation are provided in the following sections. IR was/is not triggered in any of the cases.

B. Land Acquired and Leased from PT. Perkebunan Nusantara VIII Rancabolang

1. Land acquired and Leased from PTPN VIII Rancabolang 17. Four (4) new wells will be drilled in the existing well pads (Loc U, Loc A and Loc W – see photos 1 - 5), and the new power plant will be built on land that was acquired from State Owned Plantation Entreprise - PTPN VIII Rancabolang. The existing Patuha-1 sub-station will be used for the Patuha-2 sub-project. The proposed Patuha-2 sub-project transmission line will use existing towers, with new circuit. (see Table 3.2). Land required for pipelines have been leased on a 10-year basis (Photos 6-7) and there will be lease extension for the next periods to secure the Patuha-2 project preparation and operation.

Photo 1. Loc U.

7 The other part of the segment is in protection forest (for which IPPKH has already been obtained).

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Photo 2. Loc A.

Photo 3. Loc A.

Photo 4. Loc W.

Photo 5. Loc W.

18. Release of PTPN's land to GDE for geothermal development facilities was done in 2004 after obtaining approval from the Minister of State Owned Enterprise (SOE) and the Minister of Finance in 2003. The agreement to release rights and approval letter is provided in Appendix 1. The approval letter stipulated agreement to release 367,569 m2 of plantation land in Rancabolang, where 189,625 m2 covers location A, location W, location U, power plant, transmission tower and sub-station. The agreement provides that compensation payment for land and other affected assets would be made in stages until the year 2006. Determination of the value of compensation was carried out by the Directors of PTPN VIII by establishing a Price Estimator Committee consisting of a PTPN VIII representative (official), a representative of the Ministry of SOE (staff) and other relevant institutions. Certification of the acquired land was completed in 2016. Appendix 2 presents a copy of the certificate of Location W, Location A and one certificate covering Loc U, power plant, transmission line and sub-station.

19. The Minister of SOE issued a regulation that prohibits the sale of assets owned by state owned entreprise (SOE) in 2010. Therefore from 2010 onwards PTPN's land use for developing geothermal facilities was carried out by leasing instead of acquisition. The provision of leasing procedure was regulated in the GDE Director Decree No. 014.2.SK/PST.00-GDE/VI/2015 concerning Standard Operation and Procedures, section 18 on Procedure of Procurement and Borrowing of Plantation Land.

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20. Land required for pipeline routes was leased in 2010 for a period of 10 years (photos 6-7). The lease may be extended on provision that GDE submits an extension application in writing to PTPN no later than 12 months before the end of agreement. The arrangement of compensation payments for rent are as follows : (i) for the first year, compensation value consists of compensation for land, compensation for building and trees, business value/benefit compensation, value added tax, and land – building tax; (ii) the compensation value for the second year onwards consists of compensation for land, value added tax and land–building tax; (iii) If the leasing agreement is extended, GDE is only required to pay compensation per point (ii).

Photos 6 and 7. Existing pipelines on land leased from PTPN XVIII Rancabolang (with sufficient space for installation of new pipelines).

21. IR Triggers.8 IR was not triggered in the case of land acquired or leased from PTPN VIII Rancabolang. No croppers use plantation land. With respect to tea plantation workers, access to their various workplaces within the tea plantation is accommodated during working hours. (See Section 2 below and Photos 8-10.)

8 Affected people have lost their productive base, business, jobs or other income source, regardless of whether they have lost their houses, condition of displaced persons are worse off, they risk impoverishment and alienation which may result in landlessness, joblessness, homelessness, marginalization, morbidity, food insecurity, loss of access to common property and social disorganization including crime and substance abuse (ADB Resettlement Handbook, Chapter 7, p.61).

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2. Workers’ Access to PTPN VIII Rancabolang Tea Plantation

22. There are plantation worker settlements consisting of about 70 households inside the Patuha facilities area. However, the activities of PTPN VIII are not impaired / restricted by Geothermal exploration activities because there are three access roads to the tea plantation and plantation tea factory. Access roads near Loc W and Loc G give access to the tea plantation, while the access road near to Loc U is also the access road to the plantation tea factory. Access gates open from 08.00 am to 06.00 pm (photos 8-10). As may be seen, previous land leasing activities are compliant with ADB’s safeguards principles and requirements.

Photo 8. Access to Tea Plantations (near Loc W).

Photo 9. Access to Tea Plantation (near Loc G).

Photo 10. Access to Tea Plantation and Tea Factory (Near Loc U).

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3. Extension of Land Lease from PTPN VIII Rancabolang 23. The original lease between PT Geo Dipa Energi and PTPN VIII Rancabolang was signed in December 2010 (No. SP/V.3/1261/XII/2010 and No. KTR.008.DIRUT-GDE/XII/2010). Appendix 3a presents a copy of an Addendum to the Land Lease Agreement signed on 24 April 2013. In essence, the addendum provides for the lease of more land, adjustment in the amount of compensation and adjustment to the penalty for breach of agreement. The validity period remains until December 2020. The agreement provides that the extension proposal process should commence 12 months prior to the expiry of the lease. 24. Per 17 October 2018, GDE send a letter (No. 250/PST.00-GDE/X/2018) to PTPN VIII Rancabolang regarding a 10-year extension to the current lease (shown in the Appendix 3b). An audience regarding the extension will be granted on 20 September 2019. An official reply from PTPN VIII will be issued by 30 November 2019. A second Lease Addendum proposal will be submitted by 15 January 2020, and the Addendum will be approved / signed by 15 June 2020.

C. Protection Forest Land Leased from PT Perum Perhutani (IPPKH)

1. Loc V and Loc G – Land Use Permits (IPPKH) 25. Two blocks of land leased from PT Perum Perhutani for the existing Patuha Power Plant Complex will be used for the following Patuha-2 sub-project components: (i) drilling of 5 new wells at Loc V (Photos 11 and 12) and Loc G (Photo 13), and (ii) construction of new pipelines along existing ROWs between Loc W and Loc V, and between Loc G and Loc GPP - which partially pass through the protection forest.

Photo 11. Loc V.

Photo 12. Loc V.

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Photo 13. Loc G.

26. Land Use Permits (IPPKH) from Perum Perhutani for both these locations were obtained in 2013. The following describes the application process to obtain the IPPKH:

(i) The Land Use Permit (IPPKH) began to be processed in 2002 after GDE took over over the Patuha field9.

(ii) Requests for approval to use forest area are was first proposed by the Minister of Energy and Mineral Resources (MEMR) for PT. GDE to the Ministry of Forestry in December, 27, 2004, by enclosing the following documents : (i). work plan for the development of Patuha geothermal exploitation, (ii). Map of working area, (iii) Approval letter and approved Environmental Impact Analysis Document – AMDAL, (iv). Other relevant documents such as reccomendation from Bupati and Governor, technical and legal recommendation from MEMR.

(iii) The principle permit was issued by the Ministry of Forestry in 2005 for 14.6 Ha of protected forestry land usage for development of Patuha geothermal exploitation activities. The principle permit covered location V and G and was valid for 2 years. The principle permit was renewed in 2007, 2010 and 2012. The principle permit for forestry land use does not permit any construction until such time that Land Use Permit is issued by Ministry of Forestry (See Appendix 4)

(iv) It took a long time to issue the Land Use Permit due to difficulty in obtaining replacement land and also boundary changes of proposed area due to reduction of area in Loc C, which was then added to the Loc V for pipelines installation. Thus, total area did not exceed area which had been approved in the principle permit from the Minister of Forestry. Additional area in Loc V gives a space for pipeline of Patuha 2 (see photos 11 and 12).

(v) Considering the complexity of requirements and length of time to obtain Land Use Permit, the GDE proposed instead of issuance of dispensation permit in February 2011 for temporary period to enable the construction and development geothermal facility. See Appendix 5 for dispensation permit. Engineering, procurement and construction of

9 During period 1996 to 1998, MEMR prepared a technical and legal consideration which later became the basis for IPPKH application.

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Patuha-2 facilities was started in early 2012 after issuance of dispensasion permit and completed in 2014.

(vi) The Land Use Permit - IPPKH for Loc V and Loc G was issued by Ministry of Forestry in 2013 after GDE fulfilled all obligations as mentioned in the principle permit are as follows:

a) Carried out the boundary of location of “borrow use” (pinjam pakai) of protected forest in 2008 and changes in the boundaries of location of borrow use of protected forest areas in 2012.

b) Provided 30,2075 Ha of replacement land located in Jatisari Village, Cakuang Subdistrict, Bandung District. The replacement land area was approximately twice the size of the borrowed forest land area as regulated in the first principle permit (2005). Minutes of hand over of replacement land from GDE to Provincial Forest Agency- Perum Perhutani III Jabar on March 2010 are attached in Appendix 6

c) Replacement land have been appointed to be protected forest by Ministry of Forestry Decree No SK 60/Menhut II/2011 dated 30 November 2011 and has been designated as protected forest by Ministry of Forest Decree No. SK. 765/Menhut-II/2013. Both decrees are provided in Appendix 7.

d) Carried out reforestation on the replacement land and paid reforestation fee to Provincial Forest Agency in 2009 (see receipt in Appendix.8).

e) Paid compensation for any trees that were planted on the borrowed land to Provincial Forest Agency – Perhutani in 2012 (see receipt in Appendix 8)

f) Paid investment cost to Provincial Forest Agency in 2011 (see receipt in Appendix 8)

g) Comittment statement from GDE Director aknowledged by notary to implement following obligation : (i) carry out reclamation and reforestation of forest areas that have not been used without waiting for the completion of IPPKH period, (ii). carried out forest protection, (iii). facilitating forestry official, both central and regional, when carrying out monitoring and evaluation in the field, (iv). bear all costs as a result of borrow use of forest.

27. GDE has the obligation to prepare biannual monitoring reports which reports fullfillment of obligations as stipulated in the Land Use Permit - IPPKH, to be sent to Directorate General of Ministry of Forestry, Provincial and District Forestry Agency. The monitoring reports have to report the following information: (i) plan and actual forest land usage, (ii) plan and actual reclamation and reforestation, (iii) plan and actual reforestation of replacement land in accordance with relevant law, and (iv) other obligation fulfillment as stipulated in the Land Use Permit-IPPKH. 2. Location BB (well pads, access road, pipelines) – IPPKH yet to be obtained 28. Three (3) new wells will be drilled in Location BB. A new access road and pipepline route will also be located in the protected forest (from Loc BB to Loc G), therefore requiring a Land Use Permit-IPPKH. The procedure for IPPKH application will refer to MoEF Regulation No. P.27/MENLHK/SETJEN/KUM.1/2018 concerning Directive of the Use of Forest Area10 that was ammanded by the MoEF No. P.7/MENLHK/SETJEN/KUM.1/2/2019 concerning Amandement to Regulation of the MoEF No. 27 Year 2018 and GDE Director Decree No. 014.2.SK/PST.00-GDE/VI/2015 Standard Operation and Procedures, Chapter 15 on Procedure Land Procurement Borrow Use of Forest Area. The GDE SOP is basically in line with the MOEF Decree on directive

10 MoEF Regulation No. 27/2018 is a the directive of the use of forest area.According to this regulation, IPPKH could be apply by online single submission system except for mining sector

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of the use of forest area, provide more information on what division is responsible for permit application and fullfillment of other requirements. 29. GDE has started to process to obtain an IPPKH for about 35,000 m2 (3,5 ha) for Loc BB (including access road and pipiles corridor), expected to be issued by 2021. Timeline for processing IPPKH for use of protection forestry land for proposed wellpad 9 at Loc BB and propose ROW for new pipeline and inspection road from Loc BB to Loc G are shown. In Appendix 9. Some potential replacement land location has been identified, which are in Jatisari Village, Cangkuang Subdistrict (close to the previous replacement land) and in Sugih Mukti Village, Pasirjambu Subdistrict. GDE will allocate budget for land acquisistion timely to ensure timely land acquisistion process. The identified plots of forestry land are reportedly unencumbered (no AKPS 11 permits have been issued) and free from sharecroppers according to GDE and Perhutani coordination meeting and site reconnaissance on 26 March 2019 (see Minutes of Coordination meeting provided in Appendix 10). Photo 13 was taken during the site reconnaissance to verify that the protection forest area to be leased was free of croppers.

Photo 13. Field reconnaissance of site to be leased.

30. IR Triggers. IR is not triggered in the case of land already leased, or to be leased from Perum Perhutani. All land owned / leased (from PTPN VIII as well as Perum Perhutani) by PT Geodipa is Patuha is patrolled regularly – there are no encroachers. The preceding paragraph and Appendix 10 documents that there are no croppers on the land to be leased. However, following the MoEF Regulation No. 7 Year 2019, GDE needs to acquire approximately 70,000 m2 (7 ha) of land (twice the size of the borrowed forest land area) to replace forestry land to be used for the project. The replacement land will be appointed and designated as protected forest by MOEF. In such case, land acquisistion for forestry land replacement will be considered as anticipation of ADB financed project and might trigger IR safeguard as per ADB Safeguard Policy

11 Akses kelola perhutanan sosial (AKPS) is a permit issued to communities / farmer groups to engage in social forestry on PT Perhutani managed forest.

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Statement (SPS 2009).12 In case of IR is triggered,13 a Resettlement Plan (RP) as per provision under ADB SPS needs to be prepared once location of land has been identified and corridor of impact is determined.14 The objective of the RP is to ensure that livelihoods and standard of living of affected persons/displaced persons are improved, or at least restored to pre-project level and that the standards of living of the affected persons/displaced persons poor and other vulnerable groups are improved, or at least restored by providing adequate compensation and livelihood restoration program. The RP should be prepared based on social impact assessment and meaningful consultation with the affected persons. Principles of IR safeguard and an outline of RP plan is provided in the Appendix 13.

IV. Consultation and Grievance Redress Mechanism

31. Consultation .Stakeholder consultations I were conducted with local communities in the area surrounding the Patuha Geothermal complex in March 2019. Appendix 11 presents the Minutes of Meetings for the public consultations. No specific concerns were raised regarding potential negative impacts of Patuha-2 on local people’s livelihoods, however, participants did articulate a list of complaints 15. Considering that the overall project espouses the need for a redress mechanism (GRM) in compliance with the ADB-SPS 2009 and current GOI laws, it is appropriate that a GRM be set up for the Patuha-2 expansion project.. 32. Stakeholder consultation II were conducted out with local communities in the three affected villages in September 2019. Participants supported the project, howeve some issues and expectations were raised by the participants wich were almost the same as issues and expectations raised in the first consultation. The expectations of the communities include; (i) GDE to provide opportunities for communities especially youth to work at GDE (during project construction and operation) and support of GDE to improve their skills so they can access job opportunities. Information on the job opportunities is provided through village offices; (ii) GDE to continue providing community development program by considering the needs of communities including youth and women group; (iii) GDE to properly mitigate impacts during construction including increasing noise and dust. Summary of stakeholder consultations II can be seen in Appendix 12 33. Gender Strategy. The following measures are adopted to address gender issues as well as for other vulnerable sectors in this subproject :

12 As the forestry land replacement more than 5 hesctares, GDE will acquire the land Land through eminent domain following procedure set forth under the Law No. 2 Year 2012 concerning Land Acquisistion for Development of Public Interest and its implementing regulations.

13 According to the scope and triggers of involuntary resettlement safeguards of ADB SPS, the involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. ADB.2009: Safeguard Policy Statement. Manila.

14 Although GDE has identified several potential areas for forestry replacement land, the location determination needs to be consulted and agreed by the MoEF. Forestry land replacement needs to be provided by GDE after the issuance of the IPPKH.

15 Disturbances and damage caused by the regular passage of heavy vehicles in and out of the Patuha site, insufficient absorption of local manpower by GDE, and various other issues e.g. incomplete status of road construction assistance (1.2 km) in Alamendah Village (documented in the Consultations Report).

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(i) Any meeting and or consultation will be held at time and venue convenient for women

to ensure at least 30% women participation (ii) Women will be given equal chance in getting hired for unskilled work and receive

equal remuneration for the same work by the men (iii) Women, the elderly, and disabled will be prioritized in livelihood restoration

program (iv) Gender analysis, especially related to resettlement impacts need to be carried for

the RP preparation. (v) Disaggregated monitoring indicators by gender and vulnerable groups will be

developed for monitoring social benefits, economic opportunities, livelihood. (vi) Women are represented in Grievance Redress Committees (GRCs)

34. Grievance Redress Mechanism. GDE shall ensure that (i) an efficient grievance redress mechanism is in place and functional to assist the affected persons and other stakeholders in resolving queries, conflicts and complaints, if any, in a timely manner; (ii) all complaints are registered, investigated and resolved in a manner consistent with the provisions of GRM detailed in the RP, DDR, and IEE/EMP; (iii) the complainants / aggrieved persons are kept informed about status of their grievances and remedies available to them; and (iv) adequate staff and resources are available for supervising and monitoring the mechanism. 35. Grievance Redress Committee (GRC) will be established and the members will be the Head Office General Project Manager and the HSE and Safeguards Manager of the PMU, the head or representative from the village (kecamatan), the Site Office Project Manager, PR staff and HSE Staff (i.e., environment and social safeguard staff at Patuha), the PMC, and a representative of the Contractor(s). The PMC will act as the secretariat of the GRC. GDE will ensure fair representation of women in the GRC and observe transparency in handling complaints at all times. The GRC will be responsible to resolve complaints (if any) within a month (30 calendar days) from the date it was received, to maintain a record of complaints received and resolved, and to advise the complainant on the decision made. The PMU (through the PMC) will create a database of complaints filed and resolved. A complaint can be filed either in writing, by phone,

or in-person to the designated contact person on-site. 36. Procedures. The person filing the complaint can seek redress in three levels: (i) through the designated contact person at the site office (i.e. PR staff) or through the OE/PMC of the Contractor, (ii) through the GRC, and (iii) the appropriate courts of law. Affected person complaining can seek redress through the legal system of the Government of Indonesia at any point in the GRM process. The levels to file a complaint is as follows:

(i) Level 1 – Site Office through the designated contact person (i.e. PR staff). Complaint to be resolved at the Site Office level (i.e., environment safeguard staff or social safeguard staff, PMC, Contractor) within five working days and advise the Complainant accordingly.

(ii) Level 2 – GRC. When a complaint is not resolved at Level 1, Complainant can submit the complaint to the GRC. The GRC will convene, review the submission and make a decision within 30 days from the date of receipt. The Complainant will be informed of the decision in person or by mail. The Complainant shall be consulted by the GRC when identifying grievance redress options. The GRC may collaborate with relevant agencies (i.e. district land office and TP4P/TP4D for land acquisition and involuntary resettlement, District agency of environment) to resolve the complaint.

(iii) Third level – Appropriate Courts of Law. When the complaint remains unresolved, the Complainant will be referred by the GRC to the appropriate courts of law.

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37. GDE will keep a record of the following: (i) contact details of complainant, (ii) date the complaint was received, (iii) nature of complaint and agreed resolution/corrective action, (iv) status of the complaint handling, (v) date the resolution/corrective action was implemented, and (vi) the final outcome. 38. The summary of grievances filed and resolved will be included in the semi-annual environmental monitoring reports submitted to ADB. The associated costs to maintain the GRM will be borne by GDE. Figure 4-1 shows a schematic representation of the Grievance Redress Mechanism.

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Figure 3. Grievance Redress Mechanism

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VI. Estimated Budget for Land Lease and IPPKH

39. The budget for land acquisition in the case of Patuha-2 expansion will be approximately Rp. 20.4 billion (US$ 1,434,803). Table 3 presents the budget details for period 2019–2020. 40. The Patuha-2 expansion sub-project will not have any impacts on privately-owned land or people. Patuha-2 will use land owned by PTPN VIII Rancabolang, and PT Perum Perhutani via leasing mechanisms specified by the respective regulations discussed earlier in the report. The current lease on PTPN VIII Rancabolang will expire at the end of 2020. The lease extension process will be initiated in September 2019 in accordance with additional land requirements for Patuha-2 expansion by means of an Addendum to the original lease agreement of 2013. The addendum will specify the additional area of land to be leased. At the time of the preparation of this DDR, the budget for the addendum was in the process of being discussed internally by GDE management. The estimate that was able to be provided was that approximately Rp. 28,522 billion will be required to cover the addendum for the lease for the next 4-year period (2019–2022). This will include lease of land plus compensation for affected crops (productive tea bushes). 41. Patuha-2 expansion will also make use of protection forest land under the jurisdiction of PT Perum Perhutani. Based on the Regulations of the Minister for Environment and Forestry No. 27/2018, Art. 1(15), IPPKH (Izin Pinjam Pakai Kawasan Hutan) is the permit that needs to be issued for use of forest land for development outside of forestry activities without altering the function of gazette forest land. At the time of preparation of the DDR, GDE had already initiated the application for the above permit in the case of additional land required for Patuha-2 expansion. According to GDE, the estimated cost for the process of obtaining the IPPKH (from initiation to completion) will be approximately Rp. 10 billion. 42. Funding Mechanism. The PMU has already prepared the budget for 2020 based on the Table 5-1 and will obtain the funds from State Equity Injection (PMN16) to finance each year’s budgeted activities. The PMU will transfer permit processing and compensation funds directly to PTP VIII Rancabolang and PT Perum Perhutani corporate bank accounts as specified in agreements signed.

Table 3. Patuha-2 Expansion Sub-project Land Acquisition Budget for period 2019–2022 LAND

ACQUISITION (Lease /

Permits) COST ESTIMATE

2019 2020 2021 2022 2023 2024 Total Total

Rp. (million) (US$)

1) IPPKH permit process

10,000 10,000

2) Lease from PT XIII Rancabolang

1,836 2,020 2,222 2,444 8,522

Sub-Total 1,836 12,020 2,222 2,444 18,522 1,304,366.2

Contingencies (10%)

183.6 1,202 222.2 244.4 1,852.2

Grand Total (IDR)

2,019.6 13,222 2,444.2 2,688.4 20,374.2

Grand Total (US$)

142,225.4 931,126.8 172,126.8 189,323.9 1,434,802.8

16 PMN – Penanaman Modal Negara

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VI. Institutional Arrangements A. Institutional Arrangements 43. GDE will be the Executing Agency (EA) for the project which responsible for overall coordination, policy direction, and administration of project activities, including those related to social safeguards. A Project Management Unit (PMU) has been established for managing both the Patuha-2 and Dieng-2 expansion sub-projects. The Director of Operations will direct the PMU, which will be headed by a General Manager (GM) with overall responsibility for day to day management and supervision the GPGP. The PMU will be the Implementing Agency (IA). Figure 6-1 presents the organizational structure of GDE and where the PMU sits within the organisation. Within the PMU, the GM will be supported by a Manager HSE and Safeguard, who will in turn be supported by a Government Relation and Social Safeguards Assistant Manager with a Safeguards staff. The Government Relation and Social Safeguards Assistant Manager and staff will be responsible for, and will assist the Manager HSE and Safeguards with respect to social safeguards compliance oversight, activities associated with land acquisition and issuance of forest permit, and livelihood restoration 44. The Patuha Units will be implementing arms of the PMU at site. A Social Safeguards and Public Relation (PR) supervisor will be designated at the Patuha Unit who will responsible for (i) support Government Relation and Social Safeguards Assistant Manager for the day-to-day implementation and monitoring of safeguards plans, including implementation of the LRP, and (ii) supporting the functioning of the grievance redress mechanism. The social safeguard staff will be a member of Grievance Redress Committee coordinated by the Public Relation staff at Unit Patuha. Figure 4 show the project organizational structure for RP implementation

45. The Project Management Consultants (PMC) will be recruited and it include an international and a national Social Safeguards/Resettlement specialist. The consultants will support the Government Relation and Social Safeguards Assistant Manager, Social Safeguard and PR supervisor in Dieng, the GDE’s Land Acquisition Team as well as the CSR Division in the implementation of land acquisition and involuntary resettlement activities, delivery of Livelihood Restoration programs and monitoring, including procurement of NGO/consultant services, and subsequent monitoring thereof. The consultant also responsible to conduct capacity building training for staff handling social safeguards at GDE HQ and units (GDE Dieng and GDE Patuha) prior to land acquisition and IR implementation and will continue during project implementation. Topics may include current Indonesia legal framework and ADB SPS on social safeguards, meaningful consultations and disclosure, income and livelihood restoration program, grievance redress mechanism, and monitoring.

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Figure 4. Organizational Structure for Project Implementation

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46. The project contractor will be responsible to handle project impacts during construction including provide compensation for any damaged or lost assets. This obligation needs to be emphasized in the project contractor’s contract. The contractor will also be responsible to receive and resolve the grievance in collaboration with social safeguard staff at Patuha. A member of the grievance redress committee responsible to resolve complaints (if any). The contractor will receive briefing on social safeguards or participate in resettlement safeguard capacity building training. Table 4 shows the roles and responsibilities related with Social safeguards for the project.

Table 4. Responsibilities concerning Resettlement Activities

ENTITY RESPONSIBLITIES Executing Agency (GDE BOD)

▪ Responsible for overall coordination, policy directions, and administration, including those related to social safeguards

▪ Approval of RP

PMU ▪ Responsible for the day-to-day implementation of the Project and will be accountable for technical, safeguards, and financial reporting

▪ Ensure proper GRM in place, and accessible to APs and local communities in the sub-project area.

o Oversight of GRM operations.

▪ Establishment and management of the LAT.

▪ Recruit the Project Management Consultant (PMC) and the licensed independent appraisal

▪ In coordination with GA, o Application for land use (pinjam pakai) process (IPPKH) from PT

Perum Perhutani based on Ministerial Decree of the Minister for Environment and Forests No. P.27 / Menlhk / Setjen / Kum.1/7/2018

▪ Submission of social safeguards semi annual monitoring reports to ADB

PMU Government Relation and Social Safeguards Assistant Manager under HSE and Safeguards Manager

▪ Responsible for conduct internal social safeguards monitoring and compliance, including implementaion of action plan and reporting

▪ Support the PMU to ensure proper GRM in place and accesable by AHs and communities in project area o . Coordinate with Patuha Unit concerning effective operation of the

GRM.

▪ Support the PMU in the establishment of the LAT.

▪ In coordination with CORSEC, responsible for annual budgeting, budget allocation and implementation of the livelihood restoration and enhancement activities, CSR reorientation and strategic community development activities.

▪ Support the PMU in the procurement and management of specialist NGO / consultant services for development of SID+++ for 6 Village Governments, and production of a Development Partnership Road Map for GDE Dieng and the local communities.

▪ Compilation and submission of social safeguards semi-annual monitoring reports to the ADB

Social safeguards and PR Supervisor at Patuha Unit

▪ Support Government Relation and Social Safeguards Assistant Manager for the day-to-day implementation and monitoring of safeguards plans, including implementation of the livelihood restoration program (LRP)

▪ Support the PMU/GA in obtaining Forest Land Use Permit (IPPKH)

▪ Supporting the functioning of the grievance redress mechanism. The social safeguard staff will be a member of Grievance Redress Committee coordinated by the PR officer

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ENTITY RESPONSIBLITIES

General Affairs (GA) ▪ Support PMU re: land acquisition process and extension of land leasing from PTPN Rancabolang

▪ Forestry permit (pinjam pakai) process (IPPKH) from PT Perum Perhutani.

Corporate Secretariat (CORSEC)

▪ Annual planning, and budget allocation for GDE ComDev program.

▪ Relay grievances sent to info@geodipa.co.id to the PMU.

Project Management Consultant (Social Safeguard/ Resettlement Specialist

▪ Supports the PMU in the management of monitoring and reporting on project compliance with its social safeguards’ obligations (set out as ADB loan covenants).

▪ Review and update safeguards documents, as needed.

▪ Provide training to GDE /PMU Social Safeguards personnel and the contractors on safeguards requirements as per ADB SPS 2009

▪ Support GDE/PMU in the preparation of semiannyal safeguards monitoring reports for submission to ADB

▪ Provide training to GDE / PMU Social Safeguards personnel regarding social safeguards requirements as per ABD SPS 2009.

▪ Support the PMU in the recruitment and management of: a) facilitators to facilitate the identification and securing of alternative land

for AHs to lease / purchase after they receive their respective compensation payments;

b) NGO facilitation services to support implementation of the LRP and CDP.

c) Specialist NGO / consultant services for development of SID+++ for 6 Village Governments.

▪ Support Specialist NGO in producing a Development Partnership Road Map for GDE and local communities and planning new livelihood security solutions.

Contractors ▪ Responsible to handle project impacts during construction including provide compensation for any damaged or lost assets set forth in the RP.

▪ In coordination with the Grievance Focal Person, responsible for resolving grievances during construction period

▪ Responsible for reporting grievance receipt and resolution to the GRM Focal Person at Unit level.

▪ Responsible to handing over grievances which cannot be resolved by the contractor to the Grievance Focal Person.

B. Capacity Building

47. In order to realize the implementation of the social safeguards planning documents, the Social Safeguards/Resettlement Specialist under the PMC shall assist PMU for the RP update if applicable, implementation, and provide capacity building trainings on social safeguards-related tasks/activities. Trainings for GDE safeguards teams will be conducted prior to social safeguards planning document full implementation – the first set should be before detailed measurement surveys. Specific topics recommended for the training are:

(i) Strengthen knowledge and awareness of stakeholders on provisions in the social safeguards planning documents including ADB SPS 2009 on involuntary resettlement

(ii) Requirements and procedure for RP Update as well as understanding use of the detailed measurement survey instruments;

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(iii) Conduct of meaningful consultations and grievance handling. (iv) Orientation and finalization of detailed plans for livelihood restoration, plan for

compensation disbursement and its required document, and required document for grievance handling.

(v) Monitoring of resettlement development plan and reporting.

48. PMU as primary implementing agencies, shall retain adequate staff for handling social safeguards with relevant qualifications and experience to be able to adequately design and deliver the RP.

VII. Compliance Assessment

49. Table 6-1 presents the compliance assessment of land acquisition in the past and present. Relevant Forestry laws and regulations regarding lease of forest land (pinjam pakai) have been complied with (see table below). Also, relevant laws and regulations governing acquisition and lease of land from PTPN VIII Rancabolang. Land was acquired (purchased) from PTPN VIII in 2006. Since 2010, land from PTPN VIII has been leased. 50. Compliance with ADB SPS 2009. ADB IR principles 4,5,6,7,8,10 and 11 are not applicable.

(i) The sub-project is compliant with IR principle 1. Screeninh has been carried out for the sub-project and DDR is prepared following the screening.

(ii) IR principle 2. Public consultations (Sosialisasi I) were conducted over 18-19 March 2019, and a second public consultations to share the main results of the DDR have been conducted during the FFM in September 2019. Identified action to address complaint – establishment and operationalization of a Grievance Redress Mechanism. Further consultations need to be conducted for the Corrective Action Plan (CAP) implemenattion.

(iii) The sub-project is compliant with IR principle 3. No privately-owned land or assets have been / will be affected. Tea plantation workers have access to their workplace (tea gardens as well as the factory) between 8 am – 6 pm. However, forestry land replacement may have an impact on land acquisistion.

(iv) Follow-up action has been identified regarding IR principles 9 and 12. (See below table, and Chapter VIII.)

Table 5. Compliance Matrix

Matter Compliance Status Compliance/

Action

GOI Regulations

Past Actions (pre-2019) Procedure for obtaining Lease of land within Protection Forest area (IPPKH) for Loc V, Loc G and segments of ROW between Loc W and Loc V, and Loc G and Loc GPP within

Law No. 41/1999 concerning Forestry and its amendment Law No.9/2004. Art. 4 states that all forests within the territory of the Republic of Indonesia including natural resources contained therein shall be controlled by the State for the maximum prosperity of the people. Forest control means that government has the authority to (a) maintain and manage anything relating to forest, forest area, and forest products, (b) stipulate the status of forest areas, and (c) maintain and stipulate legal relations of people to forests as well as legal acts concerning forestry. Article 68 signifies that the community shall be entitled to enjoy environmental

Compliant

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Matter Compliance Status Compliance/

Action

protected forest area.

quality the forest produces. Further, that the community in and around the forest shall be entitled to compensation against loss of access to surrounding forest as employment opportunity to fulfil their daily needs due to forest area designation according to the prevailing legislation. Each person shall be entitled to compensation against loss of their title to land they own due to forest area designation according to the prevailing legislation.

Government Regulation 24/2010 concerning Forest Area Usage, and its amendment Government Regulation No. 61/2012. Art 4(1) states the utilization of forest land for other or non-forestry purposes is allowed to address the strategic activity with the main objective that could not be avoided where development of renewable energy is one of them as states in Art 4 (2). Art 6 (1) utilization of forest land is carried out based on the forest Land Use Permit, Art 6 (2a) permit to borrow and use forest area in provinces with forest areas below 30% of the watershed area, islands and or provinces with provisions for land compensation with a ratio of at least 1: 2 for commercial. Art 9 to 13 provides procedures and requirements for application for forest areas usage.

Compliant

Forestry Ministry Decree No. P.18/Menhut-11/2011 concerning Directive for the Use of Forest Area and the latest amandement Forestry Ministry Decree No. P.14/Menhut-11/2013. Art. 1(5) stipulates that the use of forest area refers to the use of a part of forest area for non-forestry purposes without changing the function and allotment of the mentioned forest area. Art. 1(8) states that it has to be done through getting permit for non-forestry purposes development in forest area. Art. 1(10) stipulates that compensation is the obligation of the permit holder to provide non-forestry land in substitution for the forest land that is used for non-forestry development. Art. 1(12) mentions that the substituted land shall be in no conflicting claims de facto and de jure with other stakeholders. Art 3 (1) states Land Use Permit only applicable for the utilization of Production Forest and Protected Forest. Art 3(2) states the forest land utilization should not change the main purposes of the forest land. Art 4 (1) states the utilization of forest land for other or non-forestry purposes is allowed to address the strategic activity with the main objective that could not be avoided where geothermal is one of them (Article 4 Verse 2 Point “d”). Art 7 (1) utilization of forest land is carried out based on the forest Land Use Permit, Art 7(2) permit to borrow and use forest area in provinces with forest areas below 30% of the watershed area, islands and or provinces with provisions for land compensation with a ratio of at least 1: 2 for commercial.

Compliant Construction of power plant, drilling and injection well and other facilities of Patuha unit 1 which was located in the protected forest commenced in 2012 after issuance of dispensation permit. Dispensation permit gave permission for GDE to start construction and development geothermal facilities until such time that Land Use Permit was issued in 2013.

Release of PTPN's land to GDE for geothermal

Approved by the Minister of State-Owned Enterprises (SOE) and the Minister of Finance in 2003.

Compliant Land acquired in 2006 - see

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Matter Compliance Status Compliance/

Action

development facilities

Appendix 1.

Procedure for obtaining lease of land from PTPN VIII Rancabolang.

Minister of SOE 2010 regulation prohibiting sale of assets owned by state owned entreprise (SOE).

Compliant First 10-year lease per Dec. 2010. Lease extension in process.

ADB SPS 2009

Screening for impacts

1. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

Compliant. Due Diligence for Patuha-2 has been carried out to identify past, present, and futire IR impacts.

Meaningful consultation & GRM

2. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

Compliant Conducted first public consultation (Sosialisasi) over 18-19 March 2019 in an accessible place a form, language understandable to villagers and other stake holders. Public consultations conducted before project appraisal Sosialisasi II to be conducted in September 2019 during FFM. Action - GRM will be established. Focal GDE officer to be designated.

Improvement of livelihoods of all displaced persons

3. Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible

Compliant No land, assets or people affected. No restriction of access for plantation workers since access to the tea plantation or the factory during working hours (06:00 am to 18:00 pm) is available.

Additional assistance / rehabilitation

4. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better

N/A This principle will apply if IR is

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Matter Compliance Status Compliance/

Action

housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required

triggered bacause of requirements of forestry land replacement

Restoration to pre-project levels. Attention to women and vulnerable groups.

5. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing.

N/A This principle will applyif IR is triggered bacause of requirements of forestry land replacement.

Transparency and Equitable

6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status

N/A This principle will apply if IR is triggered bacause of requirements of forestry land replacement

Eligibility 7. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets

N/A This principle will apply if IR is triggered bacause of requirements of forestry land replacement

Preparation of Resettlement Plan

8. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

N/A DDR produced instead. A RP might need to be prepared if any IR triggered for forestry land replacement.

Disclosure 9. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

Action - A Project information Leaflet providing explanations about the sub-project and GRM will be prepared and distributed to local stakeholders. The name of focal GDE Officer and contact details will be provided in the leaflet (Draft of PIB

29

Matter Compliance Status Compliance/

Action

is provide in Appendix 14) The DDR that include GRM, RP if requied, and monitoring reports will be disclosed in a timely manner, and posted in both ADB and project websites.

Inclusion of resettlement costs in development project / program.

10. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

All costs related to land need for the sub-project have bee included in the project cost.

Provision of compensation and resettlement entitlements before displacement occurs.

11. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation.

N/A for the time being. However, this principles will apply if IR is triggered due to requirement of forestry land replacement. .

M & E 12. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

Accomplishment of Action Plan to be monitored.

VIII. Monitoring & Evaluation

51. Semi-annual monitoring in regard of the Action Plan that will be prepared by Project Implementation Consultant and reviewed by PMU of Patuha-2 who will submit to ADB for review and disclosure on its website. The scope of monitoring includes:

(i) Fullfillment of obligations as stipulated in the Land Use Permit – IPPKH such as: (i) plan and actual forest land usage, (ii). plan and actual reclamation and reforestation, (iii). plan and actual reforestation of replacement land in accordance with relevant law, (iv). Others obligation fulfillment as stipulated in the Land Use Permit-IPPKH.

(ii) Unanticipated impacts during construction among others are as follows : ▪ According to the FS, the existing road is sufficient for transportation heavy

equipment and material, therefore widening of access road is not necessary. However, monitoring during construction is needed to ensure all damage / impact on private assets due to project will be compensated at replacement cost.

30

▪ The same monitoring also need to be conducted to ensure the area belonging to GDE is sufficient to develop all Patuha-2 facilities.

(iii) Monitoring of procedure for obtaining IPPKH for Loc BB will be carried out in accordance with applicable regulations. Ensure there will be no civil works in the field before issuance of dispensation permit or IPPK.

(iv) Leasing of PTPN VIII land for pipeline lines will expire in 2020. Monitoring needs to be done regarding status (progress) of the renewal extension procedure. The procedure shall refer to the GDE Director Decree No. 014.2.SK/PST.00-GDE/VI/2015 concerning Standar Operation and Procedures, section 18 on Procedure of Procurement and Borrowing of Plantation Land.

(v) Design and implementation of livelihood restoration program as part of benefit provided for the project

(vi) Preparation and implmentasi of RP. Detailed scope and indicators to be monitored as well as reporting and disclosure of monitoring report will be presented in the RP.

IX. Correction Action Plan

52. An Action Plan is required to bring the sub-project into compliance with ADB IR principles, as well as to ensure the land acquisition schedule supports the overall project implementation schedule. 53. IR principles 2 and 9. The PMU will ensure that:

(i) the sub-project will provide information to the public (Sosialisasi III) prior to project implementation;

(ii) A GRM is established by the time the Loan becomes effective; and (iii) A project information leaflet (providing easy to understand description regarding the sub-

project, implementation schedule, GRM and name and contact number of the GDE person-in-charge as well as PMU e-mail address) is prepared and distributed to the local stakeholders. Draft of PIB is provide in Appendix 14.

(iv) The sub-project level of the PMU (safeguards Focal Point17) will ensure that mitigation measures identified in Table 4-1, and

(v) Will conduct periodic meetings with local communities (once every 3 months)18 to resolve outstanding issues and to receive any inputs.

54. IR principle 9. The PMU will disclose the DDR, GRM, RP for forestry land replacement if required, and monitoring reports on the Project website in a timely manner. The same information will be submitted to the ADB to be posted on the ADB website in a timely manner. 55. IR principle 12. The PMU will monitor implementation of the Action Plan and ensure that it is accomplished satisfactorily in a timely manner. This will include monitoring of implementation and ensure fulfilment of IPPKH obligations. The PMU will also monitor unanticipated impacts during the construction stage (particularly related to the mobilization of large equipment and materials) and ensure satisfactory remedial measures have been implemented. (See Chapter VII)

17 A combined environmental and social safeguards Focal Point will be designated at the Patuha Unit (PMU sub-project level).

18 The Focal Point will use the communications instrument (protocol) developed by the Communications Specialist.

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56. Timeliness of processing of land lease from Perum Perhutani (IPPKH). Based on the sub-project implementation schedule provided in the Feasibility Study, it is estimated that the IPPKH process will be completed by Q3 of 2021. In GDE’s IPPKH processing schedule (Appendix 9), the IPPKH is only issued by end 2021. Forestry land replacement will be provided by GDE to the MoEF after the issuance of the IPPKH. To avoid any potential delays to sub-project implementation, GDE legal division will oversee the process to ensure timely execution. The GDE legal division will obtain a principle permit to give GDE permission to start construction and development of geothermal facilities until such time that the Land Use Permit (IPPKH) is issued. (See points 41. (iii) and (iv) in Chapter VII.) 57. Un-anticipated Impacts during the construction phase there will be no private land of property affected by the Patuha-2 expansion sub-project. No significant impacts are expected from land acquisition. However, there may be some impacts during construction phase when the project mobilizes heavy equipment. The impact and entitlement are presented in the following table:

Table 8-1: Unanticipated Impacts during Construction and Entitlements

Impact/Loss Category

Entitled Person Project Entitlement Remarks

Temporary or permanent impacts due to construction activities

For those who have formal legal rights (certificate) or those whose claim on land is recognized as a full right

• For lease payments of the affected land by the contractor based on the applicable rental fees and agreements with landowners.

• For productive land, rental fee will not be less than the net income that would have been generated from the affected productive land;

• Compensation for non-land assets acquired (trees / plants, structure) permanently affected will be compensated at replacement cost

• Land will be restored to pre-project conditions or even better after the construction is completed

• 30-60 days prior notice given to the owner of the land before it is used temporarily by contractors.

• This provision should be stipulated in the contract / agreement with civil works contractors

Those who have no formal legal rights (certificate) and recognizable title (informal dwellers, sharecroppers

• Compensation for affected non-land assets (trees/crops, buildings) at full replacement cost • No rental fee for land for the period of impact • Land will be restored to pre-project conditions or even better after the construction is completed

Government or State Enterprises / communal property and assets (e.g. schools, mosques, village office power poles, village road etc.)

Rebuilding the facility or provide cash compensation based on the agreement with the affected parties

58. ComDev Package Design and Implementation. GDE implements a Community Development (ComDev) Program in Patuha as part of its corporate social responsibility. Based

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on consultations with local communities conduced in March and September 2019, GDE will expand and improve delivery of its ComDev program to the communities of Alamendah, Sugih Mukti and Panundaan Villages under the Patuha-2 sub-project as part of its project benefits sharing objective. Improved ComDev activities will consist of value chain analyses for improvement in processing and marketing of local produce, training and mentoring in development / improvement of home industries as well as new livelihood skills, provision of working equipment (as necessary), facilitation in accessing finance (credit) for starting up or strengthening existing micro-small enterprises, and facilitation in processing of required permits. The program will be implemented over the life of the sub-project (2020 – 2023) and may be continued thereafter or adjusted based on yearly evaluation recommendations. The program will target youth, women, vulnerable households and household who may experience losses due to construction impacts. Table 8-2 provides an indicative list of ComDev activities that may be programmed over period 2020-2024 in response to annual development programming consultations between CORSEC/PMU and respective Village Governments and communities. All ComDev activity packages will include activity-specific facilitation services. An indicative allocation of approximately Rp. 1.5 billion / year will be applied for three affected villages. However, the final level of financing of activities will be based on available annual ComDev program budget for Patuha and proposals received from each village.

Table 8-2: Community Development Activities

TYPE OF ACTIVITIY Target Person / Group Number

1. Employment for unskilled labour at GDE Patuha (inc. project related work)

Community members 30 community members from three viillages (20% women)

2. Identification of vendor opportunities for local entrepreneurs or via partnership agreement with Village Governments or Village BUMDES.

Village BUMDES or local entrepreneurs

3 misc. vendor opportunities / year

3. Scholarships and living allowance Students 30 students / year.

4. Support for orphans and vulnerable community members

Orphanages or orphans, women headed HHs, poor HHs, households headed by elderly, sickly, disabled persons, landless HHs.

1 orphanage or 20 vulnerable orphans per village / year.

100 vulnerable HHs / village / year.

5. Value chain analysis, development for home industries in food crop processing and marketing (including permits/certification).

Womens group Value chain analysis will benefit home industries (1 type per year), 1 group per village /year

6. Training, mentoring and equipment for the following: a) motor mechanics b) welding c) tour guide services

Youth 1st year (welding) - 10 persons 2nd year (motor mechanics) - 10 persons 3rd year (tour guides) - 10 persons

7. Identification and development of local tourism development or services opportunities.

BUMDES, Youth groups 1 initiative / village / year

8. Support for traditional performing arts groups.

Cultural / performing arts groups.

1 group / year

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59. Social preparation. In collaboration with the Patuha-2 social safeguards personnel, the Dieng Unit PR officer will be responsible for consulting and collaborating with respective Village Governments to identify, select and prepare the various ComDev activity target groups or persons for participation in annual ComDev activities. 60. In collaboration with the Patuha Unit PR officer, the Patuha-2 social safeguards and PR supervisor personnel will support implementation of ComDev activities. 61. The Patuha-2 Unit of the PMU will monitor progress and results of ComDev activities on a monthly basis. End-of-year M & E will evaluate performance and provide recommendations from improving outcomes and/or identify new strategic assistance interventions. 62. The total estimated land acquisition and Community Development Program (CDP) for Patuha-2 sub-project is Rp. 28.62 billion (US$ 2,015,775) including 10% contingencies – see Table 8-3. The cost of the CDP for Patuha-2 is approximately Rp. 7.5 billion (US$ 528,169) – approximately 26,2 % of the total cost of land acquisition and CDP. Table 8-3: Overall Land Acquisition and ComDev Budget for Patuha-2 Geothermal Expansion Sub-Project (2019 – 2024)

ITEM / ACTIVITY 2019 2020 2021 2022 2023 2024 Total Total

Rp. (million) (US$)

I. Land Acquisition

a) IPPKH permit process

10,000 10,000

b) Lease from PT XIII Rancabolang

1,836 2,020 2,222 2,444 8,522

Sub-Total (I) 1,836 12,020 2,222 2,444 18,522 1,304,366.2

II. Community Development (3 villages)

1,500* 1,500* 1,500* 1,500* 1,500* 7,500

Sub-Total (I +II) 1,836 13,520 3,722 3,944 1,500* 1,500* 26,022

Contingencies (10%)

187 1,352 372 394 150 150 2,602

Total (IDR) 2.019.6 14,872 4,094 4,338 1,650 1,650 28,624

Total (US$) 122,225.4

1,047.3 288,309.9 305,493.0

116,197.2 116,197.2

2,015,774.6

Note: * estimates based on consultations with PMU / CORSEC. ** assumptions (no estimates available)

63. Table 8-4 recapitulates the Correction Action Plan based on the above compliance assessment as well actions with respect to obtaining Forestry land lease (IPPKH) and completing the process.

Table 8-4: Correction Action Plan

ITEM Timeline Responsible Party

Notes 2018 2019 2020 2021 2022 2023

Extension of Land Lease from PTPN VIII Rancabolang

X

X

X

GDE Legal Div. / GA19

Scheduled to be completed by 15 June 2020.

19 GA – General Affairs

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ITEM Timeline Responsible Party

Notes 2018 2019 2020 2021 2022 2023

Process dispensation permit and IPPKH

X X X GDE Legal Div. / GA

DIspensation permit to be issued in 2020 IPPKH to be completed by end 2021. Dispensation permit to be obtained in timely manner to allow construction to commence per schedule.

Establish and operationalize GRM

X X X X GDE GA / PMU and Unit Patuha

To be established before Project commences. PIC (focal person) at Unit Patuha to be designated.

Prioritisation, design and implementaion of sustainable and strategic ComDev program activities

X X X X X GDE Corsec, PMU, Patuha Unit

Prioritize local community for work on the Patuha 2 sub-project

X X X X PMU, Patuha Unit, Contractor

Establish M & E system

X X X X GDE PMU, GDE Legal Affairs

M & E of Action Plan implementation *(nc., fulfilment of IPPKH conditions), and unanticipated impacts during construction and remedial action.

Consultation and periodic meetings with local communities

X

X

X

X

X

X

PMU, Unit Patuha, PMC

Sosialisasi III to be conducted prior to sub-project implementation. Distribute sub-project information leaflet during Sosialisasi III. Periodic meetings with local communities (once per 3 months) to address any outstanding grievances and inputs.

Disclose DDR, GRM and monitoring reports on ADB and GDE website

X X X X GDE PMU, / ADB

Preparation of RP if IR is triggered for forestry land replacement

X X PMU, PMC, Unit Patuha

The forestry land replacement needs to be provided after the issuance of

35

ITEM Timeline Responsible Party

Notes 2018 2019 2020 2021 2022 2023

IPPKH expected to be in 2021.

RP implementation X X PMU, PMC, Unit Patuha

ADB’s approval on RP should be obtained by GDE prior to RP implementation

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Appendix 1

Ministry of SOE and MOF Approval on

Release of PTPN VIII’s Land to GDE for Geothermal Development Facilities

Agreement between PTPN VIII and GDE on

Acquisition of PTPN’s Land to be Used for Geothermal Development Facilities

37

38

39

40

41

42

43

44

Appendix 2

Certificate of Location W, Location A and

One Certificate covering Loc U, Power Plant, Transmission Line and Substation

45

Loc W Certificate

46

47

Certificate Loc A

48

49

Certificate Loc A, Power Plant,Substation and Transmission Line

50

51

52

Appendix 3a

Addendum to Collaborative Agreement between PT. Perkebunan Nusantara VIII (Persero)

and PT Geo Dipa Energi regarding Lease of a part of the HGU Land

of the Rancabolang Plantation

No. ADD/IV.I/365/IV/2013

53

ADDENDUM PERJANJIAN KERJASAMA antara

dengan

PT. GEO DIPA ENERGI

Tentang: SEWA MENYEWA SEBAGIAN LAHAN

HGU PERKEBUNAN RANCABOLANG

No.ADD/1V.1/ 36"/ I V /2013 Pada hari ini e-abu, Tanggal 2A , Bulan ,Tahun 20 (B bertempat di Kantor Pusat PT. Perkebunan Nusantara VIII (Persero) Jalan Sindangsirna No. 4 Bandung, kami yang bertandatangan di bawah ini: I PT.Perkebunan Dalam hal ini diwakili oleh Dadi Sunardi selaku

Direktur

Nusantara VIII (Pesero) Utama PT. PERKEBUNAN NUSANTARA VIII (PERSERO) berkedudukan di Bandung, jalan Sindangsirna No. 4, dalam hal ini bertindak untuk dan atas nama PT. Perkebunan Nusantara VIII (Persero), selanjutnya disebut "PTPN VIII (Persero)".

11 PT. Geo Dipa Energi Dalam hal ini diwakili oleh Praktimia Semiawan selaku Direktur Utama PT. Geo Dipa Energi berkedudukan di Jakarta, Gedung Recapital Lt. 8, Jalan Aditiawarman Kav. 55, Kebayoran Baru — Jakarta Selatan 12160,

dalam hal ini bertindak untuk dan atas nama PT. Geo Dipa Energi, selanjutnya disebut "GDE".

PTPN VIII dan GDE secara bersama-sama disebut Para Pihak. Bahwa berdasarkan:

1. Surat PT Geo Dipa Energi No.096/PST.OO-GDE/1X//2012 tanggal 28 September 2012 perihal Permohonan izin penggunaan sebagian lahan HGU Perkebunan Rancabolang.

2. Surat Perjanjian Nornor : SP/V.3/1261/X11/2010 dan Nornor : KTR.008/DIRUTGDE/XII/2010 tanggal 17 Desember 2010 tentang Pinjam Pakai Sebagian Lahan HGU Perkebunan Rancabolang.

3. Berita Acara Hasil Survey Lapangan Terhadap Jalur Pipa Air 6 inch dan Transmisi Listrik 6.3 Kv PT Geo Dipa Energi Nornor : BA/RAB/0854/X/2012 tanggal 17 Oktober 2012.

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Atas dasar tersebut para pihak sepakat untuk membuat Addendum Surat Perjanjian Sewa Menyewa Lahan Sebagian Lahan HGU Perkebunan Rancabolang, untuk mendukung kegiatan pembangunan proyek PLTP Patuha Unit 1, dengan ketentuan dan syarat-syarat sebagai berikut :

PASAL 1 Mengubah Pasal 1 Perjanjian sebagai berikut: SEMULA

Pasal 1 Lingkup Perjanjian GDE bermaksud meminjam pakai sebagian lahan Hak Guna Usaha PTPN VIII (Persero) Perkebunan Rancabolang (Selanjutnya disebut Objek Perjanjian) dan PTPN VIII (Persero) setuju untuk memberikan ijin pinjam pakai kepada GDE atas Objek Perjanjian untuk kegiatan jalur pipa uap dan pipa kondensat PLTP Patuha Unit 1.

MENJADI Pasal 1 Lingkup Perjanjian

1. GDE bermaksud menyewa sebagian lahan Hak Guna Usaha PTPN VIII (Persero) Perkebunan Rancabolang (Selanjutnya disebut Objek Perjanjian) dan PTPN VIII (Persero) setuju untuk memberikan ijin pinjam pakai kepada GDE atas Objek Perjanjian untuk kegiatan jalur pipa uap dan pipa kondensat PLTP Patuha Unit 1.

2. Kegiatan jalur pipa uap dan pipa kondensat termasuk jalur pipa air dan tiang listrik untuk proyek PLTP Patuha Unit 1 (selanjutnya dalam perjanjian disebut sarana prasarana).

PASAL 11 Mengubah Pasal 2 Perjanjian sebagai berikut : SEMULA

Pasal 2 Lokasi dan Luas Lahan Tanah yang Menjadi Objek Perjanjian

1. Lahan tanah yang menjadi objek Perjanjian ini adalah sebagian dari lahan tanah Hak Guna Usaha milik PTPN VIII (Persero) No 14/HGU/BPN/05 Desa sugih Mukti kecamatan Pasirjambu kabupaten Bandung yang berlokasi di Perkebunan Rancabotang Blok kendeng, Afdeling Rancabolang II dan Rancabolang III.

2. Luas tanah yang menjadi Objek perjanjian pada ayat (1) di atas seluas 44.868,733 rn2 (Empat puluh empat ribu delapan ratus enam puluh delapan koma tujuh ratus tiga puluh tiga meter persegi).

MENJADI

Pasal 2

55

Lokasi dan Luas Lahan Tanah yang Menjadi Objek Perjanjian 1. Lahan tanah yang menjadi objek Perjanjian ini adalah sebagian dari lahan tanah

Hak Guna Usaha milik PTPN VIII (Persero) No 14/HGU/BPN/05 Desa sugih Mukti kecamatan Pasirjambu kabupaten Bandung yang berlokasi di Perkebunan Rancabolang Blok kendeng, blok dan 32, Afdeling Rancabolang II dan Rancabolang III.

2. Luas tanah yang menjadi Objek perjanjian pada ayat (1) di atas seluas 45.690,733 rn2 (Empat puluh lima ribu enam ratus sembilan puluh koma tujuh ratus tiga puluh tiga meter per segi)

PASAL 111 Mengubah Pasal 3 Perjanjian sebagai berikut : SEMULA

Pasal 3 Peruntukan/Penggunaan Lahan Tanah

1. Objek Perjanjian akan dipergunakan untuk pembangunan jalur pipa uap dan pipa kondensat PLTP Patuha Unit 1.

2. PTPN VIII (Persero) setuju untuk memberikan izin kepada GDE untuk melakukan kegiatan sebagaimana dimaksud dalam ayat (1) di atas dan GDE setuju untuk membayar kompensasi sebagaimana diatur dalam Pasal 5 Perjanjian.

3. Persetujuan dan ijin yang diberikan PTPN VIII (Persero) dalam Perjanjian ini mencakup kegiatan-kegiatan yang dilakukan oleh kontraktor dan/atau rekanan serta pemasok GDE termasuk oleh para agen dan para sub kontraktornya selama proses pembangunan jalur pipa uap dan pipa kondensat PLTP Patuha Unit 1 atas biaya dan resiko menjadi tanggung jawab GDE sepenuhnya.

4. Datam rangka membangun jalur pipa uap dan pipa kondensat PLTP Patuha Unit 1 tersebut, GDE akan memenuhi ketentuan perundang-undangan yang berlaku.

MENJADI

Pasal 3 Peruntukan/Penggunaan Lahan Tanah

1. Objek Perjanjian akan dipergunakan untuk pembangunan jalur pipa uap dan pipa kondensat dan sarana prasarana PLTP Patuha Unit 1.

2. PTPN VIII (Persero) setuju untuk memberikan izin kepada GDE untuk melakukan kegiatan sebagaimana dimaksud dalam ayat (1) di atas dan GDE setuju untuk membayar kompensasi sebagaimana diatur dalam Pasal 5 Perjanjian.

3. Persetujuan dan ijin yang diberikan PTPN VIII (Persero) dalam Perjanjian ini mencakup kegiatan-kegiatan yang dilakukan oleh kontraktor dan/atau rekanan serta pemasok GDE termasuk oleh para agen dan para sub kontraktor yang telah mendapat penujukan dari GDE dibuktikan dengan adanya keterangan tertulis dari GDE selama proses pembangunan jalur Pipa uap dan Pipa kondensat dan sarana prasarana PLTP Patuha Unit 1 atas biaya dan resiko menjadi tanggung jawab GDE sepenuhnya.

4. Segala bentuk kerugian dan/atau kerusakan yang dialami PTPN VIII (Persero) terkait kegiatan-kegiatan yang dilakukan oleh GDE, kontraktor dan/atau rekanan serta pemasok GDE termasuk oleh para agen dan para sub kontraktor yang telah

56

mendapat penunjukan dari GDE dibuktikan dengan adanya keterangan tertulis dari GDE menjadi beban serta tanggung jawab GDE sepenuhnya.

5. Dalam rangka membangun jalur Pipa uap dan Pipa kondensat dan sarana prasarana PI-TP Patuha Unit 1 tersebut, GDE akan memenuhi ketentuan perundang-undangan yang berlakua

PASAL V Mengubah Pasal 5 Perjanjian sebagai berikut : SE-MULA

Pasal 5 Kompensasi atas Objek Perjanjian

1. Nilai kompensasi atas penggunaan Objek Perjanjian ini untuk tahun pertama adalah sebagai berikut :

No Uraian Nilai (RP)

1 2 3 4

5 6 7

Kompensasi lahan Ganti rugi bangunan Ganti rugi tanaman Nilai bisnis/kompensasi benefit Sub jumlah

PPN

PBB

846.257.053 2.099.139.200 2.352.236.730 5.000.000.000 10.297.632.983 1.029.763.298

5.890.793

Total 11.333.287.074

2. Nilai kompensasi tahun kedua dan seterusnya adalah terdiri dari nilai kompensasi lahan, PPN 10% dan PBB. Nilai kompensasi lahan akan diperhitungkan berdasarkan NJOP tahun berjalan.

3. Dalam hal perjanjian ini diperpanjang, GDE hanya wajib membayar nilai kompensasi sebagaimana tersebut pada ayat (2) pasal 5 Perjanjian inia

MENJADI

Pasal 5

Kompensasi atas Objek Perjanjian 1. Nilai kompensasi atas penggunaan Objek Perjanjian ini seluas 44.868, 733 m2 untuk

tahun 2010 adalah sebagai berikut :

No Uraian Nilai (Rp)

1 2 3 4 5 6 7

Kompensasi lahan Ganti rugi bangunan Ganti rugi tanaman Nilai bisnis/kompensasi benefit Sub jumlah PPN PBB

846.257.053 2.099.139.200 2.352.236.730 5.000.ooo.ooo 10.297.632.983 1.029.763.298

5.890.793

Total 11.333.287.074

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2. Nitai kompensasi penambahan luasan atas penggunaan Objek Perjanjian ini seluas 822 m2 untuk di tahun pertama pada tahun 2013 adalah sebagai berikut :

No Uraian Nilai (Rp)

1 2 3 4 5 6 7

Kompensasi lahan Kompensasi Kekayuan Ganti rugi tanaman Biaya Tanaman 'Teh Biaya Reboisasi Total (Pembulatan) PBB PPN

16.440.ooo 3.453.333

59.524.529 6.374.446

6.421.471 92.220.ooo

32.880 9.222.ooo

Total 101.474.880

Nilai kompensasi tahun kedua dan seterusnya adalah terdiri dari nilai kompensasi lahan, PPN 10% dan PBB. Nilai kompensasi lahan akan diperhitungkan berdasarkan NJOP tahun berjalan.

3. Dalam hal perjanjian ini diperpanjang, GDE hanya wajib membayar nilai kompensasi lahan sebagaimana tersebut pada ayat (1) dan ayat (2) pasal 5 Perjanjian ini.

PASAL VII Mengubah Pasal 7 Perjanjian sebagai berikut : SEMULA

Pasal 7 Hak dan Kewajiban PTPN VIII (Persero) 1. PTPN VIII (Persero) dalam Perjanjian ini berhak :

a. Menerima kompensasi penggunaan tanah pinjam pakai dan ganti rugi tegakan sebagaimana Pasal 5 dan Pasal 6 Perjanjian ini.

b. Mendapatkan jaminan keamanan, ketertiban dan ganti rugi atas resiko dan kejadian yang diakibatkan oleh kelalaian berat (gross negligence) GDE berkaitan dengan pemanfaatan Tanah Pinjam Pakai yang menimpa karyawan, masyarakat serta menimpa aset, harta benda atau properti milik PTPN VIII (Persero).

c. Mendapatkan prioritas penggunaan brine water / direct use bagi kepentingan pengolahan teh Pihak Pertama yang pelaksanaanya lebih lanjut akan disepakati para pihak.

d. Terlepas dari segala tuntutan kerugian yang dialami oleh pihak lain sebagai akibat kelalaian GDE.

2. PTPN VIII (Persero) dalam Perjanjian ini berkewajiban.

a. Mengijinkan penggunaan Objek Perjanjian di Kebun Rancabolang kepada GDE sebagaimana pasal 2 dan pasal 3 Perjanjian ini sesuai ketentuan perundangundangan yang berlaku.

b. Mengijinkan kepada GDE beserta para kontraktor dan sub kontraktornya untuk dapat memasuki dan menggunakan Objek Perjanjian berkoordinasi dengan Administratur Kebun Rancabolang.

c. Menjamin bahwa PTPN VIII (Persero) adalah pemilik yang sah setta mengelola secara penuh Objek Perjanjian dengan status Hak Guna Usaha.

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d. Menjamin bahwa Objek Perjanjian tersebut tidak terikat sebagai jaminan terhadap pihak lain, tidak dibebani dengan beban-beban apapun juga dan bebas dari sita dan sengketa serta penguasaan fisik yang ilegal dan bahwa Tanah Pinjam Pakai tersebut tidak sedang disewakan kepada dan/atau digarap oleh pihak lain serta tidak terikat dalam perjanjian apapun juga kepada pihak lain serta belum pernah diserahkan kepada pihak lain dengan cara apapun.

e. Menjamin bahwa Objek Perjanjian tidak akan digunakan untuk kepentingan sendiri, ataupun membuat perjanjian dengan pihak manapun lainnya untuk menggunakan, mengalihkan, memindahtangankan atau menjadikan jaminan dengan hak tanggungan atas Objek Perjanjian, selama jangka waktu Perjanjian ini.

f. PTPN VIII (Persero) setelah menerima pembayaran ganti rugi bangunan akan menyiapkan lahan untuk pembangunan jalur pipa dan kondensat PI-TP Patuha unit 1 paling lambat 6 (enam) bulan sejak perjanjian ini ditandatangani.

g. Apabila PTPN VIII (Persero) tidak memenuhi kewajibannya maka akan diselesaikan sesuai Penyelesaian Perselisihan sebagaimana Pasal 13 Perjanjian ini.

MENJADI

Pasal 7 Hak dan Kewajiban PTPN VIII (Persero)

1. PTPN VIII (Persero) dalam Perjanjian ini berhak :

a. Menerima kompensasi penggunaan Objek Perjanjian dan ganti rugi tegakan sebagaimana Pasal 5 dan Pasal 6 Perjanjian ini.

b. Mendapatkan jaminan keamanan, ketertiban dan ganti rugi atas segala resiko dan kejadian yang diakibatkan oleh GDE, karyawan GDE serta pihak/kuasa yang ditunjuk GDE berkaitan dengan pemanfaatan objek perjanjian yang menimpa karyawan, masyarakat serta menimpa aset, harta benda atau properti milik PTPN VIII (Persero) .

c. Mendapatkan prioritas penggunaan brine water / direct use bagi kepentingan pengotahan teh Pihak Pertama yang pelaksanaanya lebih lanjut akan disepakati para pihak.

d. Terlepas dari segala tuntutan kerugian yang dialami oleh pihak Iain sebagai akibat kelalaian GDE.

2. PTPN VIII (Persero) dalam Perjanjian ini berkewajiban .

a. Mengijinkan penggunaan Objek Perjanjian di Kebun Rancabolang kepada GDE sebagaimana pasal 2 dan pasal 3 Perjanjian ini sesuai ketentuan perundangundangan yang berlaku.

b. Mengijinkan kepada GDE beserta para kontraktor dan sub kontraktornya yang telah mendapatkan penujukan secara tertulis dari GDE, untuk dapat memasuki dan menggunakan Objek Perjanjian berkoordinasi dengan Administratur Kebun Rancabolang.

c. Menjamin bahwa PTPN VIII (Persero) adalah pernilik yang sah serta mengelola secara penuh Objek Perjanjian dengan status Hak Guna Usaha.

59

d. Menjamin bahwa Objek Perjanjian tersebut tidak terikat sebagai jaminan terhadap pihak Iain, tidak dibebani dengan beban-beban apapun juga dan bebas dari sita dan sengketa serta penguasaan fisik yang ilegal dan bahwa Objek Perjanjian tersebut tidak sedang disewakan kepada dan/atau digarap oleh pihak Iain serta tidak terikat dalam perjanjian apapun juga kepada pihak Iain serta belum pernah diserahkan kepada pihak Iain dengan cara apapun.

e. Menjamin bahwa Objek Perjanjian tidak akan digunakan untuk kepentingan sendiri, ataupun membuat perjanjian dengan pihak manapun Iainnya untuk menggunakan, mengalihkan, memindahtangankan atau menjadikan jamÏnan dengan hak tanggungan atas Objek Perjanjian, selama jangka waktu Perjanjian ini.

f. PTPN VIII (Persero) setelah menerima pembayaran ganti rugi bangunan akan menyiapkan lahan untuk pembangunan jalur pipa dan kondensat dan sarana prasarana PLTP Patuha unit 1 paling lambat 6 (enam) bulan sejak perjanjian ini ditandatangani.

g. Apabila PTPN VIII (Persero) tidak memenuhi kewajibannya maka akan diselesaikan sesuai Penyelesaian Perselisihan sebagaimana Pasal 13 Perjanjian ini.

PASAL VI Mengubah Pasal 11 Perjanjian sebagai berikut : SEMULA

Pasal 11 Pemutusan perjanjian

1. Salah satu pihak dapat memutuskan secara sepihak Perjanjian ini dengan ketentuan, sebagai berikut :

a. GDE tidak melaksanakan pembayaran baik pokok maupun denda pada waktu yang ditentukan dalam pasal 5 dan 6 Perjanjian ini.

b. GDE tidak menggunakan Objek Perjanjian sesuai dengan peruntukan dan penggunaannya menurut Perjanjian inia

c. Apabila salah satu pihak tidak memenuhi ketentuan kewajiban dalam Perjanjian ini-

2. Apabila salah satu pihak tidak memenuhi kewajibannya menurut Perjanjian ini setelah diberitahu secara tertulis Oleh pihak Iainnya dalam jangka waktu 30 (tiga puluh) hari belum memenuhi kewajibannya, maka pihak Iainnya tersebut dapat memutus Perjanjian ini secara sepihak.

3. Pemutusan Perjanjian sebagaimana sebab dimaksud pada ayat 1 pasa! ini tidak melepaskan kewajiban para pihak sampai dengan diputusnya Perjanjian ini.

4. Para pihak sepakat melepaskan ketentuan Pasal 1266 Kitab Undang-Undang Hukum Perdata apabila terjadi pemutusan Perjanjian.

MENJADI

Pasal 11 Sanksi dan Syarat Pembatalan Perjanjian 1. Untuk maksud pemutusan Perjanjian ini, maka Para Pihak sepakat untuk

melepaskan atau mengenyampingkan ketentuan Pasal 1266 dan 1267 Kitab Undang-Undang Hukum Perdata.

60

SER

DAD

2. PTPN VIII (Persero) dapat mengakhiri Perjanjian ini secara sepihak tanpa adanya tuntutan apapun dari GDE, dengan memberitahukan secara tertulis kepada GDE 30 (tiga puluh) hari kalender sebelum pernutusan apabila

a. Periode berlakunya sesuai dengan Perjanjian ini telah berakhir dan GDE tidak mengajukan permohonan perpanjangan Perjanjian kepada PTPN VIII (Persero) sebagaimana ketentuan Pasal 4 ayat (2) Perjanjian ini,

b. Menurut pertimbangan PTPN VIII (Persero), GDE tidak menepati salah satu atau lebih kewajiban-kewajiban yang dinyatakan dalam Perjanjian ini.

c. GDE melanggar sebagian dan/atau seluruh ketentuan dan peraturan-peraturan yang telah digariskan dalam perjanjian ini.

d. GDE melakukan kegiatan yang dapat merugikan citra/nama baik PTPN VIII (Persero).

3. GDE membebaskan PTPN VIII (Persero) dari segala tuntutan pihak ketiga sebagai akibat pelaksanaan pernutusan Perjanjian ini baik secara langsung maupun tidak langsungs

4. Dengan adanya pernutusan perjanjian yang terjadi, tidak serta merta memutuskan kewajiban GDE sampai dengan kesepakatan yang seharusnya dilaksanakan saat pemutusan Perjanjian.

Addendum ini merupakan bagian yang tidak terpisahkan dari Perjanjian Nomor . SP/V.3/1261/X11/2010 dan Nomor : KTR.008/DIRUT-GDE/X11/2010 tanggal 17 Desember 2010 tentang Pinjam Pakai Sebagian Lahan HGU Perkebunan Rancabolang. Ketentuan dałam Perjanjian yang tidak dirubah dalam Addendum Perjanjian masih tetap berlaku. Demikian Addendum Surat Perjanjian ini dibuat dan ditandatangani pada tanggal tersebut di atas oleh Para Pihak bermaterai cukup rangkap 2 (dua), mempunyai kekuatan hukum yang sama untuk dipergunakan sebagaimana mestinya.

PT.GEO DIPA ENERGI NUSANTARA VIII PRAKTIMIA SEMIAWAN RDIDirektur Utama

Direktur Utama

61

Appendix 3b Letter from GDE Director to PLN VIII Rancabolang regarding Propose

Extention Of Plantation Land Leasing

62

63

Appendix 4 Ministry of Forestry Decree on the Land Use Permit Covers

Loc V and Loc G

1. Ministry of Forestry Decree No. S.287/Menhut VII/2005 2. Ministry of Forestry Decree No. S.368/Menhut VII/2007 3. Ministry of Forestry Decree No. S.257/Menhut VII/2010 4. Ministry of Forestry Decree No. S.306/Menhut VII/2012

64

65

66

67

68

69

70

71

72

73

Appendix 5

Ministry of Forestry Decree on the Dispensation Permit

Covers Loc V and Loc G

74

75

76

77

78

79

80

Appendix 6

Minutes of Hand Over of Replacement Land from GDE to Provincial Forest Agency

81

82

83

84

Appendix 7

Ministry of Forestry Decree No SK 60/Menhut II/2011 dated 30 November 2011 on the

Appointed Replacement Land to be Protected Forest

Ministry of Forest Decree No. SK. 765/Menhut-II/2013 on the Designated of Repacement Land as Protected Forest

85

86

87

88

89

90

91

Appendix 8

Receipt of Payment Reforestation Fee

Receipt Compensation for Affected Trees on the Propose Protected Forest

Receipt Payment of Investment Cost to

Provincial Forest Agency

92

93

94

95

96

Appendix 9

Timeline for processing IPPKH (Forestry Permit)

for use (pinjam pakai) of protection forestry land for proposed Wellpad 9 at Loc BB and

proposed ROW for new pipeline and inspection road from Loc BB to Loc G

97

SCHEDULE RENCANA IPPKH PATUHA

Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 ###### Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 ###### Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21

1 Konsultasi Ke KLHK dan OSS KLHK GA & Legal

2 Lokasi definitif IPPKH Patuha 2

*peta lokasi Eng

* kebutuhan luasan Lahan Busdev

3 Pembentukan Tim IPPKH GA

4 pengajuan surat permohonan IPPKH ke OSS BKPM GA &Legal

5 kelengkapan IPPKH

persyaratan Komitmen

*Tata Batas kawasan hutan yang di mohon IPPKH Perhutani TIMproses tata batas :

- surat permohonan ke perhutani dan kehutanan propins i

jabar

- pembentukan tim perhutani dan kehutanan

- pemeriksaan lapangan

- pengukuran lapangan

- pemasangan tanda batas

- beri ta acara tata batas yang digunakan

*menyerahkan lahan Kompensasi KLHK TIMproses lahan kompensas i :

- cari lahan lokas i kompensas i , dengan syarat :

@ bebatasan dengan kawasan hutan

@ terletak da lam daerah a l i ran sungai , pulau, dan/atau

provins i yang sama

@ dapat di hutankan secara konvens ional

@ Legal : tidak ada sengketa di lahan kompensas i

-keluar beri ta acara teknis dan lega l (dinas kehutanan

propins i )

- surat permohonan rekomendas i ke Bupati setempat

- rekomendas i Bupati setempat

- beri ta acara clean and clear ca lon lahan kompensas i

- Permohonan persetujuan Ijin prins ip ca lon lahan

Kompensas i dari KLHK

- persetujuan Prins ip lahan kompensas i dari KLHK

- proses pembebasan lahan kompensas i

- serah terima lahan kompensas i yang telah di bebaskan

berikut dokumen pembebasan kepada KLHK

- SK penunjukan lahan kompenas i sebagai kawasan hutan

dari KLHK

- geodipa melakukan tata batas lahan kompensas i di

koordinas i BPKH wi layah XI Jawa-Madura

*Peta base line Engineering

*ijin Lingkungan HSE

persyaratan Teknis

* kelengkapan perijinan (WKP, IUKU dll) legal

* peta Lokasi, luasan area, rincian penggunaan Engineering

* Surat rekomendasi dari Dirjen EBTKE EBTKE Busdev

* surat rekomendasi dari gubernur Prop Jabar Busdev

* pertimbangan teknis dari Perhutani Perhutani Busdev

* ijin lingkungan HSE

* pakta Integritas dengan Notaris legal

6 penyelesasian permohonan OSS OSS

7 Ijin IPPKH OSS

2019 2020 2021

ResponsibleKegiatan No

98

Appendix 10 Minute of Coordination Meeting between GDE and Perhutani

Site Reconnaisance Photos

99

100

101

102 Annex to Appendix 2

Appendix 11

Minutes of meeting of Public Consultations 18 – 19 March 2019

103

Consultation Report for Patuha Geothermal site, 18-19 March 2019 The Patuha Geothermal power plant was established in 1989. Appendix 3 provides information regarding the power plant components, proposed expansion as well as land ownership status for all components. Project Scope: Scope of Patuha expansion – drilling in 7 existing wellpads, 2 new well pads, 2 new roads, and new 2 lines. Potential Impacts: Land for 2 new wellpads is under the jurisdiction of PT Perhutani. However, this land is available for social forestry management permits (IPPKH 20 or Kulin KK) based on forest farmer group (Tani Hutan) applications. Some Patuha 2 project components will be constructed in the existing Patuha 1 facilities. Some components (2 well pad and road access and pipeline) will be constructed in protected forest areas, outside Geodipa’s premises. It needs to be clarified whether the forestry land to be used for Patuha is encumbered or not (i.e. whether IPHPS or Kulin KK permits have been issued in the area, or whether there is any encroachment).

Date Monday, 18/3/19 Venue / Location Balai Desa Sugihmukti Sub-district / Kecamatan: Pasir Jambu No. of Participants – 61 (Male: 47; Female: 14) Representation: Village Office, Village Women’s Organization (PKK), Village Youth Organization (Karang Taruna), Village Council (BPD), Village Corporation (BUMDES), District Social Agency Socio economic Profile of Village: Patuha Site - Most of the village land is under BUMN (Perkebunan tea estate, PT Perhutani, and PT Geodipa). Outsiders own some 30% of remaining village land. Average size of farmers’ landholdings – 1,400 m2. Many do not have sufficient land to farm or do not own land, therefore most of residents become farm laborers to neighbouring farmers or plantation workers. Daily wages for farm laborers are around Rp. 70,000 for men and Rp. 50,000 for women, for work from 07:00 – 12:00 noon.

Topics Concerns / Issue / Discussion Notes / Remarks

Social Safeguards Consultations, information

People/participants of consultation appreciated the event. They informed that it was the first time for them to participate in such a consultation. Consultation is important to avoid negative sentiments that may arise because local people are not adequately informed about the project. Participants affirmed that they would support the project plan (Patuha unit 2) and are willing to support future activities.21

Potential impacts Coordinates of land required for Patuha-2 expansion have not as yet been fixed yet. Some areas adjacent to existing access roads which have been cultivated in the past have been replaced with coffee trees planted by PT Geodipa and local Government as mitigation to prevent soil/land erosion To date, land used for the PLTP Patuha 1 complex has been on land belonging to a tea plantation operated by a Government-owned entity (BUMN) and protection forest (Hutan lindung) under Perhutani (also a BUMN). Land acquisition for 2 new wellpads and access roads will in areas owned by both the above-mentioned entities. As expansion for Patuha-2 will not involve privately owned land, no one is expected to be affected (no loss of assets). Layout and plans of the proposed expansion have not as yet have been shared with the community. When participants were asked whether they expected any effects on their livelihoods/ income as a result of the proposed Patuh-2 expansion project, they relied that they did not expect any change in their economic situation as none of them relied on the forest area for their livelihoods. Coordinates for the proposed land acquisition were consulted with Perhutani as a basis for obtaining a permit to lease (IPPK) the required land. It was confirmed

20 IPPKH – Ijin Pinjam Pakai Kawasan Hutan 21 Each participant in the consultation was provided with a lunchbox, snack box and Rp. 100,000 travel

allowance.

104 Annex to Appendix 2

that no IPKS__ (social forestry permits) have been issued for the locations in question. A field reconnaissance will be conducted by PT Geodipa and Perhutani personnel to check the status of the land (whether the land has cultivated / encroached upon). New steam lines will be constructed side by side existing steam lines on existing ROWs. Land required for new seamline ROWs will be leased from the tea plantation or Perhutani on 10-year basis.

Community Livelihoods and Community Facilities

About 60% of the community are engaged as farm laborers (buruh tani). Others are owner-farmers, and work in the civil service (e.g. as teachers). Sugihmukti Village has one Puskesmas (public health facility) and 12 Posyandu (maternal and child health posts).

Community’s perception of PT Geodipa and re: how Geodipa Patuha benefits the surrounding communities. Local aspirations.

Some of the participants do not know what Geodipa’s purpose / business / mission is. Some feel that the village has become better known because of the presence of Geodipa / the Patuha Geothermal facility, and that ADB is supporting facility’s further development. It is important for the villages to be conducive (have a feeling of ownership). Need for mutual respect. Requests Geodipa adopt a pro-Village policy (i.e. to demonstrate how villages surrounding the facility may also benefit from its presence). Since the Geodipa Patuha Facility is present in the Village, and generating benefits for people elsewhere, what is in it for the community? (who are experiencing a land squeeze). People not feeling the continued benefit of the presence of Geodipa/Patuha. On the one hand, some participants acknowledged positive impact on the villages – improved roads, support for orphanages and education. On the other hand, some participants reported that (to date), only 6 villagers were employed at Patuha (as security guards). Villagers perceive that Geodipa employs a lot of outsiders and want more local people to be employed in Patuha - not only in lower but also higher positions; that Geodipa could provide training and even scholarships (for higher education) in order to equip people to serve within Patuha, Geodipa needs to absorb local workers and provide employment opportunities for the residents of Sugihmukti. 22 23 In the absence of specific loss of assets impacts for Patuha 2, and given that many people in the village are poor (insufficient land) with many unemployed youth, a Community Development PR (CSR) exercise is justified to offset a perceived sense of exclusion from benefits accruing from the presence of the Patuha site in the midst of the village.24

22 The following day, Geodipa prepared slides to present their CSR program, which indicates types of activities supported and total number of beneficiaries from the 3 surrounding villages. There may be a need to communicate this information during future community consultation activities together with information to give the local community a better understanding of Geodipa’s mission, how the facility works, and a map of the Patuha facility lay-out.

23 There were also some complaints re: noise, land vibrations, and dust associated with the passage of heavy vehicles and containers (primarily at night time). Villagers are also concerned about a decrease in the available of clean water in Keneng. These issues are discussed in the environmental section.

24 Re: Programming a more strategic ComDev program and leveraging a more conducive social environment. (See also Social Mapping report recommendations)

- Strategic prioritizing. There is an opportunity to better align CSR (ComDev) programming with the Village Development Plan and Government Musrenbang process as well as Geodipa long term strategic priorities. (Compare with how CSR was formulated in Panundaan Villages to be more in line with the regular Government sponsored Village Development Planning process)

- Inclusive process. Consultations for formulating broad (medium term) CSR program and annual activities would benefit from a village wide consultation process so that all members of the community may agree on priorities and be aware of what will be done and accept what will not be covered under the CSR (to reduce grounds for dissatisfaction).

105

The village has submitted a number of proposals for CSR to address (mosque development, replacement of football field, and support for micro-enterprises) but to date have not been responded to. (There appears to the case of over-expectation of Geodipa’s role and obligation to contribute to local needs which is local Government’s domain.) The participants expect that Geodipa continues the support to communities through the CSR program and requested that Geodipa will collaborate with the BUMDES for the CSR activities. BUMDES in Sugihmukti Village is a legal entity and is very active. The village has many potentials to be developed through BUMDES.

Date Monday, 19/3/19 Venue / Location Balai Desa Alamendah Sub-District / Kecamatan: Rancabali No. of Participants – 51 (Male: 45; Female: 6)

Representation: Village Government (perangkat Desa), Youth Organization (Karang Taruna), Women’s Organization (PKK), Village Council (BPD), Natural Resources Conservation Office (BKSDA), Kabupaten Social Agency (Dinas Sosial), Description of the Village context: Most of the residents of Alamendah work as farm laborers with a daily wage of Rp. 50,000. Only a small proportion of residents own land (on average around 100 tumbak (or 1,400 m2). A few villages raise cows. Local farmers under a village institution (Lembaga Masyarakat Desa Hutan – or LMDH) have obtained a permit from PT Perhutani (IPHPS) to cultivate coffee on PT Perhutani land allocated for social forestry under a profit-sharing arrangement (15% of profits goes to PT Perhutani). Coffee is sold in the form of berries or beans to middlemen who come to the village during the harvest season. The village produces about 100 tons of coffee per annum. BUMDES (Village Enterprise entity) has already been established in Alamendah Village. A Social Agency facilitator (Pendamping Keluarga Harapan) serves in the village and facilitates the provision of various forms of assistance to vulnerable groups (e.g. scholarships till high school level, assistance for the elderly, health/medical assistance (insurance coverage). There exists a Village Tourism body in the village to develop local tourism potentials. Villagers opine that lack of necessary skills hampers then from being employed by PT Geodipa at the Patuha geothermal facility. Some social envy is apparent as villagers observe that more outsiders are employed at the Patuha facility than local people.

Topics Issue / Discussion Notes Social safeguards

Consultations, information

Participants affirmed that it was the first time for them to participate in such a consultation with PT Geodipa. Consultation is important to avoid negative sentiments that may arise because local people are not adequately informed about the project. Participants affirmed that they would support the project plan (Patuha unit 2) and are willing to support future activities.

Existing land use (of land to be acquired)

The status of the land where the establishment of two new wellpads are planned is protection forest (hutan lindung) administered by PT Perhutani. As such, a permit (IPPKH) will have to be obtained from PT Perhutani. In the past, land for wellpads and other components was acquired from PT Perhutani. However, land for pipeline ROWs were leased from PT Perhutani or PT Perkebunan ___ (tea plantation) on a 10-yearly basis.

Potential Impacts A new wellpad is planned to be established in an area near the border between Sugihmukti and Alamendah Village. The proposed plot location will be on land administered by PT Perhutani. There is a forest farmer group in Alamendah Village which has been issued a permit (IPHPS) to utilize / manage forest land for social forestry purposes. It will have to be checked whether there is an overlap between the Geodipa proposed site and the IPHPS permit.

Benefits felt by the local

The Village Head of Alamendah is very supporting of the proposed expansion of the geothermal facility (Patuha-2). He says the community has benefited

- Complaints handling mechanism. It may be beneficial to establish a formal complaints handling mechanism involving village government.

- Partnership approach (mutually beneficial). There is also the opportunity for the ComDev program plus effective handling of complaints to leverage greater village commitments and support for Geodipa’s needs – e.g. a more conducive social environment (more support, less dissatisfaction), help secure buffer area around Geodipa facilities etc.

106 Annex to Appendix 2

community to date

from the Geodipa CSR program. Among other things, the CSR has financed / supported:

- construction of a new road (however, there is still an outstanding 1.2 km to be completed).

- Home industry training for women’s groups in the production of snacks made from local produce, and

- Local tourism development (cliff climbing and river tubing). Issues - Noise and dust from passage of heavy vehicles esp. of trucks transporting

building materials during the construction stage. Participants indicated the possibility of community dissatisfaction developing into protests if this matter is not satisfactorily resolved.

Aspirations & Requests

- Completion of outstanding 1.2 road segment. - A number of requests / proposals (carpet for mosque, power supply

connections for 10 households) have not as yet been responded to by PT Geodipa.

- Repair of an existing road. - Provision of scholarships up till tertiary education level (university). - Absorption of local available labor esp. from among well performing

scholarship recipients.

Date Monday, 19/3/19 Venue / Location Balai Desa Panundaan Sub-district / Kecamatan: Ciwidey No. of Participants - 59 (Male: 40; Female: 19)

Representation: Village Government (perangkat Desa), Youth Organization (Karang Taruna), Women’s Organization (PKK), Village Council (BPD), Natural Resources Conservation Office (BKSDA), Kabupaten Social Agency (Dinas Sosial), Brief description of Village: The main livelihood activity is potato and vegetable farming. Most of the villagers also work as farm labour. A small proportion of residents own land. Average size of landholdings is 100-200 tumbak (1,400 – 2,800 m2). Others work as traders, public transportation drivers, and clothes making. According to the District Social Agency village facilitator (Pendamping Keluarga Harapan), the local people are very creative. All have jobs and do not belong to the poorest strata (pra-sejahtera). BUMDES (Village Enterprise entity) is active with various livelihood enhancement activities.

Topic Issue / Discussion Notes Consultations Participants affirmed that it was the first time for them to participate in such a

consultation with PT Geodipa and appreciated the information shared. Participants affirmed that they would support the project plan (Patuha unit 2) and are willing to support future activities. Participants request that such consultations meeting are held more regularly.

Information provision re: impacts

Patuha-2 will be constructed on PT Perhutani land. The main impacts to be felt in Panundaan Village will be that many heavy vehicles will pass through its area.

Perception of Village community towards Patuha and Benefits

The Village Head was very supportive of Geodipa. Coordination and cooperation between PT Geodipa and the village community has taken the form of: - Training concerning food processing and catering for women’s groups. - Free electricity connections, - Carpets for mosques, - Provision of sheep, rabbits for farmers to raise/breed, - Provision of capital to BUMDES. - Support for tourism development – river tubing, arts centre, Panundaan

Centre. This activity was meant to provide employment opportunities for youth who are not so keen to engage in farming.

- The Village Head screened a promotion video of the Panundaan Eco-tourism (see the Panundaan Village’s website.)

Among the three villages visited, Panundaan had the most favourable perception and attitude towards PT Geodipa.

Negative impacts felt by the community

- Noise and vibrations when heavy vehicles and containers pass through the village en route to Patuha. Some houses experience damage (cracks) as a result of vibrations.

107

- Three hamlets (dusun) complained that they were the worst affected – Citiwu, Cibodas and Cipanawa. In some instances, electricity cables were pulled down by trucks.

- They feel that Geodipa contractors are not pro-active in informing local residents when large vehicles are going to pass by.

- Social envy re: outsiders working in PT Patuha. Villagers feel that they should be prioritized for jobs.

Requests Participants requested that the above issues be addressed.

108 Annex to Appendix 2

Appendix 12

Summary of Stakeholder Consultations 9-17 September 2019

109

FFM: Stakeholder Consultation Reports Geothermal Power Generation Project

Stakeholder 2nd consultation in Dieng and Patuha with affected people, communities,

and key stakeholders

9-17 September 2019

A. BACKGROUND 1. The Asian Development Bank (ADB) will provide a loan to Geo Dipa Energi (GDE) to support expanded geothermal electricity generation in two locations in Patuha, West Java, and Dieng in Central Java. The project will result in an additional generating capacity of 55 MW at the existing Patuha geothermal plant in West Java and another 55 MW at the existing Dieng geothermal plant in Central Java. The outcome of the project is increased adequacy and sustainability of energy systems, while the project impacts are increased contribution to geothermal energy in Indonesian power supply and renewable energy in electricity sector. The project includes: (i) workover of existing wells and drilling of new wells; (ii) construction of fluid collection and injection systems, 55/55 MW power plants, transmission interconnection systems; (iii) enhanced corporate capacity, and (iv) enhanced livelihood of neighbouring communities. 2. The project is categorized B both for environmental safeguard25 and resettlement safeguard26 and category C (no impacts) for the Indigenous people or customary communities following the ADB Safeguard Policy Statement (SPS). With the nature of project component and activities, the project is classified some gender element. Due diligence on safeguards and gender needs to be carried out and planning documents (Resettlement Plan and Social Audit, Environment Impact Assessment) need to be prepared, in addition to Summary Poverty Reduction and Social Strategy (SPRSS) and gender action plan (GAP). 3. The mission purpose is to conduct initial consultations with communities around the projects areas, potential affected persons, and stakeholders on environmental and social safeguards and gender for the two sub-projects (Patuha 2 and Dieng 2) under the proposed PGSP. The combined consultations conducted in partnership with GDE will be part of the due diligence and preparation of safeguards planning and gender action plan.

25 A proposed project is classified as category A if it is likely to have significant adverse environmental

impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger

than the sites or facilities subject to physical works. An environmental impact assessment is required.

26 The project is considered category A for involuntary resettlement if the activities would severely affect 200 or more persons defined as (I) being physically displaced, or (ii) losing 10% or more of their productive assets

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B. DISCUSSION AND MISSION FINDINGS 4. The second stakeholder consultation were conducted in 6 villages from 11– 13 September 2019 for Dieng and in 3 villages in Patuha, from 16–17 September 2019. 5. The structure of both public consultations divided into three sessions: 1) opening sessions; 2) presentations of key findings and responses; 3) question and answers. Discussion was focus on progress has been made after 1st public consultation conducted in March 2019, and share the social safeguard finding (environment, social and gender) to the participant to gain their input. 6. Participants in Dieng included affected community members, representatives of village government, community-based organizations (including PKK, Farmer Group, Karang Taruna, Bumdes, elderly groups), camat (hear of sub-district government), districts agencies (ATR/BPN, Dinas Lingkungan Hidup), GDE headquarters and regional units, the TA consultants, and ADB. Discussion conducted with key stakeholders, that include land renters/users, village head, camat and communities’ members. Especially for Desa Karang Tengah the issue more focus on resettlement, that involve local government and village government to participate. The meeting lead by GDE Unit Project Manager with mixing presentation by GDE and ADB consultant team.

Table 1: Number of Participants in Dieng (11-13 September 2019)

VILLAGE DAY, DATE & TIME FEMALE MALE TOTAL

% %

Kepakisan Wednesday, 11 September 2019 – morning

3 14% 19 86% 22

Sikunang Wednesday, 11 September 2019 – afternoon

10 38% 16 62% 26

Bakal Thursday, 12 September 2019 – morning

4 14% 24 86% 28

Dieng Kulon Thursday, 12 September 2019 – afternoon

4 16% 21 84% 25

Karang Tengah Friday, 13 September 2019 – morning

23 39% 36 61% 59

Pranten Friday, 13 September 2019 – afternoon

8 44% 10 56% 18

Total 52 29% 126 71% 178

7. Participants in Patuha included affected community members, representatives of village government, community-based organizations (including PKK, Farmer Group, Karang Taruna, Bumdes, elderly groups), camat (hear of sub-district government), districts agencies (Dinas Lingkungan Hidup, and BKSDA), GDE headquarters and regional units, the TA consultants, and ADB. Discussion conducted with key stakeholders, that include land renters/users, village head, camat and communities members.

Table 2: Number of Participants in Patuha (16-17 September 2019)

VILLAGE DAY, DATE & TIME FEMALE MALE TOTAL

% %

Sugihmukti Monday, 16 September 2019 – morning 20 22% 69 78% 89

Alam Endah Monday, 16 September 2019 – afternoon 33 52% 30 48% 63

Panundaan Tuesday, 17 September 2019 – morning 29 43% 39 57% 68

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Total 82 37% 138 63% 220

8. The discussion went well, interactive and in-depth dialogue to make them understand ADB consultant finding, being discus and seeking their input to understand their concern. Several common issues raised and identified, that classified into following table. 9. Overall, the consultations went well. Participants see positive aspects of the consultations. Communities have received direct benefit through GDE’s community development program. Most concerns responded to in safeguards assessments; some still require GDE’s attention.

Common issues raised: Dieng

• Most critical: power plant location (Karang Tengah)

• Social: Opportunities of jobs at GDE, community development programs to the communities.

• Environment: Noise, community risks, water pollution/abstraction, impact during construction.

• Gender: GDE’s support to women.

• Communication: Project Information, scope and benefit in written

Common issues raised: Patuha

• Opportunity to job and business opportunities at GDE, including for women.

• GDE to provide more sustainable and strategic community development program.

• Transparency of the program to communities.

• Dust and noise impacts during construction

• Project Information, scope and benefit in written D. Social Safeguards: Dieng 12. The expansion of the existing Dieng Geothermal Plant will require a total of 316,810 m2 (31.8 ha). Of this, 313,800 m2 (99 %) is already owned by Geo Dipa, while 3,010m2 is privately owned land. This will be acquired for a new pipeline and road access along 400 m connecting well pad 9 to the Dieng-2 power plant site. Transmission line would be laid underground, along new and existing pipeline and inspection road ROWs all to way to the existing sub-station (approximately 6 km) which has less social and environmental impact.

13. According to Inventory of Losses (IOL) census carried out in August 2019, documented approximately 4.02 ha of land in the Ex PLN’s land earmarked for construction of the Dieng-2 power plant that has been leased to a farmer group (comprising 23 members and 4 coordinators). Most of the other Geo Dipa owned land identified for construction of sub-project components are unencumbered except for 1 small plot of land (471 m2) in the pipeline ROW between well pad 7 to well pad 10 which occupied by one farmer. Land acquisition and cessation of activities on land currently owned by GDE identified for Dieng-2 development will affect 107 persons (33 households). All AHs reside in the village of Karang Tengah, (Kecamatan Batur, Kabupaten Banjarnegara).

Key concerns: 14. Participants see positive aspects of the consultations and expected on an going basis consultation throughout the project cycle. Written information also requested rather than verbal information. One community leader from Pranten said so far communication between GDEs and community is formal, and they has been less involved in the village or community events (weddings, religious ceremony etc). Communication was done formally. Further he hope more informally approach from GDEs which make local community feel equal and prioritized. 15. Social issues raised by participants partly the same as March consultation 2019, but the submission of objection was softer. Some of those concerns/issues have been addressed during

112 Annex to Appendix 2

the consultations and in safeguards plans, but some need to be considered for improvement of mitigation measures and require GDEs attention. 16. All participants in six villages expressed their expectation to involve in the projects as a construction labor. They asked GDE prioritize local people/neighbouring communities for work at GDE and information preference through village offices, not “paguyuban” and various medias. This concerns have been included in the RP by providing opportunities to project related jobs not only for vulnerable and severely AHs, but will expanded to community in all six villages. GDE’s ensure to include provision priority of local people for project related jobs in the EPC’s contract and GDE’s recruitment requirements for Geo Dipa’s jobs and business opportunities. 17. Training and mentoring on mechanic and welding for youth has been design by GDE’s to give more skill which will enable and empower youth to work in non-farming sector, including opportunity to work in GDE Dieng unit as skill worker. 18. Participants in general affirmed that they have received some direct benefits in the form of GDE’s on-going CSR, but they expected GDE to continue providing community development program: support to education, youth program, waste management and sustainable environment development, SMEs training and inputs. One of woman participant from Pranten village said SMEs training for improving women skills is better (more sustainable) rather than ‘micro credit” program which applied by Dieng 1. This concern has been included in the RP. GDEs need to design of sustainable and strategic community development program with gender perspective as part of GDE’s PKBL/CSR and disclose it on communities Patuha. 19. Decreasing of drinking water quality (potential contamination) and reduce of water supply during dry season was articulated at least by participants from Kepakisan, Sikunang, Dieng Kulon and Pranten. They requested GDE to provide water supply program to mitigate this issue. Participant from Bakal Village worried their water resource (spring) which located surrounding propose new well in ex PLNs land will be contaminated. They asked further assessment on this issue to anticipate their worried. 20. All participants worried about damages during project construction, learning from the case of Dieng 1 which not repaired properly27. Written agreement on compensation for damaged or lost assets/public facilities during project construction asked by Bakal and Karang Tengah community. Entitlements for impacts during project construction have been included in the RP GDEs need to emphasized this obligation in the project contractor’s contract. 21. A coordinator of renter (Ex PLN’s land) expressed negative perceptions about the project and assume the project will make residents suffer. Increasing of noise will disturb people because their settlement is located very close to propose power plant. Further He asked proper compensation for tenant farmer and coordinator. The village head stated that he personally did not approve the location of the power plant in Karang Tengah. 22. Compensation and assistance for sharecroppers have been presented in the consultations and included in the RP. Further consultations with APs on land acquisition procedure, entitlements including for coordinator of renters and village head. E. Social Safeguards: Patuha 23. The majority of land required for the Patuha 2 subproject is owned by GDE; additional 26,000 m2 (or 2.6 ha) land required for Wellpad 9 (Loc BB), and right-of-way (ROW) for new

27Among others e.g. concrete village road used for access road which repaired below specification; water pipeline was broken but not repair until now; Dieng Kulon village road use for heavy equipment access excavated by GDE for temporary drainage was not repaired up to now.

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pipeline and inspection road between Well pad 9 (Loc BB) to Well pad 4 (Loc G). Those additional land is located in forest area and tea plantation with no occupation or use by people. An principle permit for forest land and extension of tea plantation land leasing need to be secured prior to commencement of construction activities. Key concerns: 24. All participants supported the project. Issues raised by local communities from the three villages affected by project are similar which was related to opportunity to work in the project, continue of community development program and concerns on the impact during construction. 25. GDE is requested to prioritize neighbouring communities, especially youth group for working at GDE both during construction and operation as well. There are many local youth communities have skill because they have technical vocational high school background. Head of Sugihmukti Village expected information regarding job opportunity preference through village offices or “RW”. 26. Response to this request, GDE said that the expectation is inline with the GDE Unit Patuha management policy, and have been applied for Patuha 1. Many local communities works in Patuha 1 as a skill worker. Communities recognized GDE’s support to the community development and expected GDE to continue providing community development program. The program be provided to village office or Bumdes. CDP include economic empowerment, local art empowerment, opportunities for communities as sub-contractor for GDE, support village infrastructure program. Response to this request, GDEs commit to continue implementing community development program that will pay attention to communities need, but in another hand GDE’s program is limited and will support the program based on priority. 27. Heavy equipment access will use the existing road along the three villages. Learnt from the case of Patuha I, all participants expressed their worries on increasing noise and dust during construction. Some participants asked the GDE to mitigate by avoiding mobilization during night time, but many of them also asked compensation due to noise disturbance. They asked compensation not only given to community along the access road (as what ever done in Patuha 1) but to all villagers proportionally. F. Gender: Dieng 28. The second Public consultations in Dieng were conducted in 6 villages (Kepakisan, Sikunang, Bakal, Dieng Kulon, Karang Tengah, and Pranten) from 11-13 September 2019. These public consultations were carried out in three sessions, namely: 1) opening sessions; 2) presentations of key findings and responses from first consultation; 3) question and answers. 29. As shown in the Table x, a total of 178 people, comprising of 52 women (29%) and 126 men (71%) who were representatives of village officials, community leaders, CBO (PKK, Posyandu, Bumdes) participated in the second public consultation.

Table 3: Number of Participants in the Dieng Second Public Consultation

VILLAGE DAY, DATE & TIME FEMALE MALE TOTAL

% %

Kepakisan Wednesday, 11 September 2019 – morning 3 14% 19 86% 22

Sikunang Wednesday, 11 September 2019 – afternoon 10 38% 16 62% 26

Bakal Thursday, 12 September 2019 – morning 4 14% 24 86% 28

Dieng Kulon Thursday, 12 September 2019 – afternoon 4 16% 21 84% 25

Karang Tengah Friday, 13 September 2019 – morning 23 39% 36 61% 59

Pranten Friday, 13 September 2019 – afternoon 8 44% 10 56% 18

Total 52 29% 126 71% 178

114 Annex to Appendix 2

30. Compared to the first public consultations (see Table xx), there were more women participating in the second public consultations. From both the first and second public consultations (see Table 3), out of 361 participants, there was a total of 96 women (27%).

115

Table 4: Number of Participants in 1st public consultation (Dieng, March) VILLAGE DAY, DATE & TIME FEMALE MALE TOTAL

% %

Pranten Thursday, 21 March – morning 6 21% 22 79% 28

Kepakisan Thursday, 21 March – afternoon 10 50% 10 50% 20

Karang Tengah Friday, 22 March 2019 – morning 10 26% 28 74% 38

Dieng Kulon Friday, 22 March 2019 – afternoon 9 26% 25 74% 34

Bakal Saturday, 23 Sep 2019 – morning 3 7% 38 93% 41

Sikunang Saturday, 23 Sep 2019 – afternoon 6 27% 16 73% 22

Total 52 29% 126 71% 183

i Table 5: Number of Participants in: 1st and 2nd public consultation (Dieng)

VILLAGE 1st PUBLIC CONSULTATION 2nd PUBLIC CONSULTATION 1st & 2nd PUBLIC CONSULTATION

FEMALE MALE TOTAL

FEMALE MALE TOTAL

FEMALE MALE TOTAL

%

% %

% %

%

Pranten 6 21% 22 79% 28 8 44% 10 56% 18 14 30% 32 70% 46

Kepakisan 10 50% 10 50% 20 3 14% 19 86% 22 13 31% 29 69% 42

Karang Tengah

10 26% 28 74% 38 23 39% 36 61% 59 33 34% 64 66% 97

Dieng Kulon 9 26% 25 74% 34 4 16% 21 84% 25 13 22% 46 78% 59

Bakal 3 7% 38 93% 41 4 14% 24 86% 28 7 10% 62 90% 69

Sikunang 6 27% 16 73% 22 10 38% 16 62% 26 16 33% 32 67% 48

Total 44 24% 139 76% 183 52 29% 126 71% 178 96 27% 265 73% 361

31. Consistent to the first public consultations held in March 2019, the second public consultation had high numbers of women participants when meetings were conducted in the afternoon and on Friday as it is a holiday in Dieng. 32. It is noted that in the second public consultation, there was high participation in Karang Tengah Village which has been identified as the most affected village. Out of 59 participants, 23 (39%) were women. Despite there were high number of women participants, not one woman spoke during the meeting. The meeting in Karang Tengah was held on Friday morning and started late due to some miscommunication regarding the invitation. The meeting was dominated by male villagers addressing objection and negative impacts regarding Geo Dipa project.

Key Concerns 33. Access to information on Job and Business Opportunity. Both men and women in all the 6 villages are keen to obtain information about skilled and unskilled job opportunities as well as business opportunities from Geo Dipa Unit 2 project. Women participants said that currently there is lack of information about job and business opportunities. 34. A woman in Bakal Village suggested that information on job and business opportunities should be disseminated using various media such as flyer, banner, and WhatsApp application. A man in Bakal Village added that information disseminated through flyer, banner and WhatsApp should also use simple language. These concerns have been incorporated in the Gender Action Plan (GAP), namely: in 1.1.1. contract documents for contractors include requirements/provisions for employing at least XX% women; 1.1.3. at least XX% of local people hired, including local women; 3.1.1. stakeholder communication strategy includes (1) participation of at least 30% women in community consultation meetings; (2) separate meetings for women; (3) gender sensitive principles for printed, audio and visual materials; (4) Use of different media (e.g. flyer, banner, WhatsApp) in order for information to reach women.

116 Annex to Appendix 2

35. Community Development Programs. Various suggestions related to Geo Dipa Community Development Programs were addressed, namely: 1) livelihood programs in the form of trainings for small-medium enterprises and provision of equipment particularly for potato drying, processing and packaging (addressed by women from Sikunang, Bakal and Pranten Village). A woman in Pranten village stressed that training programs are more sustainable than micro credit programs. She also said that local people may not be able to repay loans. A woman in Sikunang Village requested that existing youth training provided by Geo Dipa to include women youths in order to provide equal opportunity; 2) Focus on sustainable environment programs in particular waste management, and renewable energy training programs. In addition to that, community development programs should include monitoring activities, including monitoring of previous tree-planting activities which are now left abandoned (addressed by woman from Dieng Kulon); 3) provision of early education/preschool (addressed by woman from Kepakisan Village); 4) improvement of roads and bridges (addressed by woman from Bakal Village). These concerns have been addressed in Gender Action Plan (GAP) 3.3.1. at least 30% women participate in the planning, implementation, monitoring and evaluation of community development program, and 3.3.2. separate meetings for women are conducted to identify women’s priorities and needs. With this GAP action and target, the expected result would be that local women and men jointly with Geo Dipa identify focus, priorities and strategic activities for the community development programs, including targets to be monitored and evaluated. 36. Health and Safety Issues. A woman in Sikunang Village expressed concerns about truck/heavy vehicles passing through narrow village roads with water pipes crossing over these roads, meanwhile children play on these roads. She requested that Geo Dipa should arrange trucks/heavy vehicles to pass the village roads in the evenings for the safety of children, and to reduce noise. In addition to that, if truck drivers caused damage to the water pipes, then they/Geo Dipa should provide compensation to the owners/villagers. Quality of village roads was also addressed, particularly to request funding from district government to improve the condition of roads owned and managed by the district government. This issue has been addressed in safeguards through the establishment of Grievance Mechanism, including Grievance Committee. In addition to that under Gender Action Plan (GAP) 1.3.1. at least XX% members in GRC are women, in order to create women friendly grievance channels. G. Gender: Patuha 37. Table 4 below show a total of 220 people, comprising of 82 women (37%) and 138 men (63%) who were representatives of village officials, community leaders, CBO (PKK, Posyandu, Bumdes) participated in the second public consultation.

ii Table 6: Number of participants in the 2nd public consultation (Patuha)

VILLAGE DAY, DATE & TIME FEMALE MALE TOTAL

% %

Sugihmukti Monday, 16 September 2019 – morning 20 22% 69 78% 89

Alam Endah Monday, 16 September 2019 – afternoon 33 52% 30 48% 63

Panundaan Tuesday, 17 September 2019 – morning 29 43% 39 57% 68

Total 82 37% 138 63% 220

38. Compared to the first public consultations (see Table x), there were more women participating in the second public consultations. From both the first and second public consultations (see Table 6), out of 391 participants, there was a total of 121 women (31%).

iii Table 7: Number of participants in the 1st public consultation (Patuha, March)

VILLAGE DAY, DATE & TIME FEMALE MALE TOTAL

% %

Sugihmukti Monday, 18 March 2019 – afternoon 12 20% 49 80% 61

Alam Endah Tuesday, 19 March 2019 – morning 9 18% 42 82% 51

Panundaan Tuesday, 19 March 2019 – morning 18 31% 41 69% 59

Total 39 23% 132 77% 171

117

iv Table 8: Number of participants in the 1st public consultation (March 2019) and 2nd public consultation (September 2019) in Patuha

VILLAGE 1st PUBLIC CONSULTATION 2nd PUBLIC CONSULTATION 1st & 2nd PUBLIC CONSULTATION

FEMALE MALE TOTAL FEMALE MALE TOTAL FEMALE MALE TOTAL

% % % % % %

Sugihmukti 12 20% 49 80% 61 20 22% 69 78% 89 32 21% 118 79% 150

Alam Endah 9 18% 42 82% 51 33 52% 30 48% 63 42 37% 72 63% 114

Panundaan 18 31% 41 69% 59 29 43% 39 57% 68 47 37% 80 63% 127

Total 39 23% 132 77% 171 82 37% 138 63% 220 121 31% 270 69% 391

39. It is noted that in the second public consultation, there was high participation in Sugih Mukti Village. Out of 89 participants, 20 (22%) were women. Despite there were high number of women participants, not one woman spoke during the meeting. Key Concerns 40. In general key concerns addressed during the second public consultations in Patuha were similar to the ones in Dieng namely: 1) job and business opportunities; 2) requests/ suggestions for Geo Dipa’s community development programs, particularly livelihood programs in the form of trainings and provisions of equipment; 3) concerns over heavy vehicles passing by the village roads. In addition to these, women and men in Panundaan Village suggested that Geo Dipa’s community development programs to not focus on community empowerment (i.e. capacity building) but to also include infrastructure development and provision of food and nutrition for children. H. ENVIRONMENT DIENG – Key environmental issues and concerns raised 41. Key environmental issues and concerns raised by the participants at the Public Consultation of Dieng Unit 2 development are noted below. The participants of Bakal and Karang Tengah are generally more curious and indicated higher level of concerns due to the future development of Dieng Unit 2 in Karang Tengah compared to those of Dieng Kulon, Pranten, Sikunang, and Kepakisan who are gradually accustomed to the existing operation of Dieng Unit 1. 42. The environmental issues and concerns shared among these villages are as follows:

• Inconsistent delivery of project information related to Dieng Unit 2.

• They expected an MOU between GDE and the village government as a form of commitment that would uphold the community’s rights to seek compensation if the project causes environmental deterioration and disturbance to the community such as elevated noise level, frequent H2S smell and exposure from the gas emitted from the rock muffler, and saline water in the community’s wells.

• The community representatives are still curious whether the operation of Dieng Unit 1 has caused accelerated corrosion of the galvanized zinc roof used by many houses in the area. Further, the wonder if Dieng Unit 2 may also cause this problem.

• Request for trash bins for the houses and supports for training and equipment for solid waste composting in the light of district government service on solid waste management.

• Overflow from brine water ponds that could result in soil erosion and uncontrolled drainage to crop farming areas in the proximity.

• GDE and/or its contractors to be mindful about muddy and dusty road caused by the vehicles entering and exiting the well pads and community safety within the proximity of school and market to avoid collision between vehicles and people.

• The participants wonder if exposure to H2S gas and emission from the rock muffler may cause health effects

• Perceived risks that GDE operation has resulted in reduced water flow of the river and community’s wells particularly during the dry season.

• Reparation or replacement of public facilities such as road and properties such as clean water pipeline damaged by the project.

118 Annex to Appendix 2

43. The environmental issues and concerns specific to future Dieng Unit 2 projects and raised by the public consultation participants from Karang Tengah and Bakal villages, are as follows:

• Setulu, Sedendam, and Siranti springs are reported by the community representatives as the main clean water sources for the household and farming activities. There is a perceived risk that the construction and operation of Dieng Unit 2 at Karang Tengah village would impact availability and quality of these springs as it is in their perception these water sources flow underneath the Karang Tengah village.

• One of the land renter coordinator (Mr Nasrullah) at the GDE’s owned land (ex-mess PLN) indicated his objections that the Dieng Unit 2 will be constructed at this particular site. Concerns over what the safe distance (buffer zone) between the future Dieng Unit 2 and the nearest residential areas at Karang Tengah should be.

PATUHA - Key environmental issues and concerns raised 44. Key environmental issues and concerns raised by the participants at the Public Consultation of Patuha Unit 2 development are noted below. The participants of all three villages, i.e., Sugih Mukti, Panundaan, and Alam Endah shared similar environmental issues and concerns as follows:

• Patuha Unit 2 activities should be aligned with the requirements of the approved ANDAL and RKL-RPL (2010).

• Community’s unawareness of the Company’s emergency response, handling and communication system in the event of toxic gas/H2S release and other emergency situations.

• Mobilization/demobilization of heavy vehicles and equipment at night time is avoided as not to cause disturbance to the residents living in the proximity of the access road from/to the main Ciwidey road to GDE’s project sites; and if this activity must be conducted at night time, the community expects a fair compensation.

• All sections of the access road to GDE’s project site to reduce airborne dust.

• Water spraying should be conducted during dry season to reduce airborne dust.

• Community safety on the road should be prioritized by providing “zebra cross’ and signage near the school and mitigation to avoid collision between vehicles and heavy equipment with the community and minimizing public and private property damages.

• Reparation or replacement of public facilities such as road and properties such as clean water pipeline damaged by the project.

No environmental issues were noted as specific to individual villages. I. Communication and Information Sharing 45. Overall the FFM and consultation was success. For communication and sharing information, the issue divided into 2 sections, which are: external and internal communication. Issue related to external communication mainly raised related information availability by the project, especially written information. Internal communication more to SOP and coordination between GDE HQ and Units. 46. Dieng Below is common issues raised related to communication and information:

• Critical issue is information about power plant: location, what will happen in Karang Tengah, Dieng.

• Corporate issue: what is GDE? Project perception need to be built to increase understanding about project

• Understanding substance of geothermal and how it operates: technology wise, social and environmental impact.

• Project’s scope, benefits and impacts, and how to mitigate. Project timeline

• Complaints mechanism. Recruitment & Work opportunities. Production bonus

• Community Development, Livelihood restoration, Capacity Building, Environment and Biodiversity. 47. Patuha Below is common issues raised related to communication and information:

119

• Specific issue related to the project are wild hunter, biodiversity and conservation area. Need better engagement with BKSDA Patuha, Aspinal foundation, as strategic partner to make a way for GDE to achieve green PROPER (government highest recognition for BUMN that able to manage environmental issue wisely).

• Corporate issue: what is GDE? Project perception need to be built to increase understanding about project

• Understanding substance of geothermal and how it operates: technology wise, social and environmental impact.

• Project’s scope, benefits and impacts, and how to mitigate. Project timeline

• Complaints mechanism. Recruitment & Work opportunities. Production bonus

• Community Development, Livelihood restoration, Capacity Building, Environment and Biodiversity. 48. Internal communication: GDE staff have to increase project understanding between project team members (HQ and units), to have the same level of understanding on the project and management issues, emerging trends and threats, coordination, and project planning for efficient functioning of project implementation. Including to develop internal rule: protocol communication, SOP for stakeholder engagement, GRM, emergency and recruitment. This also including capacity building for GDE on how to communicate and engage the community, and develop communication tools (project Information, timeline, scope, benefits, impacts and how to mitigate). Attachments: Appendix 1: Detailed consultation records Appendix 2: List of participants

Appendix 13

Objective, Trigger, and Principles of Involuntary Rersettleemnt Safeguards

Objectives: To avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. Scope and Triggers: The involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. Policy Principles: 1. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. 2. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of

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the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. 3. Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. 4. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. 5. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. 6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. 7. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets. 8. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. 9. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. 10. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. 11. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. 12. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

Outline of A Resettlemen This outline is part of the Safeguard Requirements 2. A resettlement plan is required for all projects with involuntary resettlement impacts. Its level of detail and comprehensiveness is commensurate with the significance of potential involuntary resettlement impacts and risks. The substantive aspects of the outline will guide the preparation of the resettlement plans, although not necessarily in the order shown.

A. Executive Summary

This section provides a concise statement of project scope, key survey findings, entitlements and recommended actions.

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B. Project Description

This section provides a general description of the project, discusses project components that result in land acquisition, involuntary resettlement, or both and identify the project area. It also describes the alternatives considered to avoid or minimize resettlement. Include a table with quantified data and provide a rationale for the final decision.

C. Scope of Land Acquisition and Resettlement

This section:

(i) discusses the project’s potential impacts, and includes maps of the areas or zone of impact of project components or activities;

(ii) describes the scope of land acquisition (provide maps) and explains why it is necessary for the main investment project;

(iii) summarizes the key effects in terms of assets acquired and displaced persons; (iv) provides details of any common property resources that will be acquired.

D. Socioeconomic Information and Profile

This section outlines the results of the social impact assessment, the census survey, and other studies, with information and/or data disaggregated by gender, vulnerability, and other social groupings, including:

(i) define, identify, and enumerate the people and communities to be affected; (ii) describe the likely impacts of land and asset acquisition on the people and

communities affected taking social, cultural, and economic parameters into account; (iii) discuss the project’s impacts on the poor, indigenous and/or ethnic minorities, and

other vulnerable groups; and (iv) identify gender and resettlement impacts, and the socioeconomic situation,

impacts, needs, and priorities of women.

E. Information Disclosure, Consultation, and Participation

This section:

(i) identifies project stakeholders, especially primary stakeholders; (ii) describes the consultation and participation mechanisms to be used during the

different stages of the project cycle; (iii) describes the activities undertaken to disseminate project and resettlement

information during project design and preparation for engaging stakeholders; (iv) summarizes the results of consultations with affected persons (including host

communities), and discusses how concerns raised and recommendations made were addressed in the resettlement plan;

(v) confirms disclosure of the draft resettlement plan to affected persons and includes arrangements to disclose any subsequent plans; and

(vi) describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for consultation with affected persons during project implementation.

F. Grievance Redress Mechanisms

This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances. It explains how the procedures are accessible to affected persons and gender sensitive.

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G. Legal Framework

This section:

(i) describes national and local laws and regulations that apply to the project and identify gaps between local laws and ADB's policy requirements; and discuss how any gaps will be addressed.

(ii) describes the legal and policy commitments from the executing agency for all types of displaced persons;

(iii) outlines the principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, incomes, and livelihoods; and set out the compensation and assistance eligibility criteria and how and when compensation and assistance will be provided.

(iv) describes the land acquisition process and prepare a schedule for meeting key procedural requirements.

H. Entitlements, Assistance and Benefits This section:

(i) defines displaced persons’ entitlements and eligibility, and describes all resettlement assistance measures (includes an entitlement matrix);

(ii) specifies all assistance to vulnerable groups, including women, and other special groups; and.

(iii) outlines opportunities for affected persons to derive appropriate development benefits from the project.

I. Relocation of Housing and Settlements

This section:

(i) describes options for relocating housing and other structures, including replacement housing, replacement cash compensation, and/or self-selection (ensure that gender concerns and support to vulnerable groups are identified);

(ii) describes alternative relocation sites considered; community consultations conducted; and justification for selected sites, including details about location, environmental assessment of sites, and development needs;

(iii) provides timetables for site preparation and transfer;

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(iv) describes the legal arrangements to regularize tenure and transfer titles to resettled

persons; (v) outlines measures to assist displaced persons with their transfer and

establishment at new sites; (vi) describes plans to provide civic infrastructure; and (vii) explains how integration with host populations will be carried out.

J. Income Restoration and Rehabilitation

This section:

(i) identifies livelihood risks and prepare disaggregated tables based on demographic data and livelihood sources;

(ii) describes income restoration programs, including multiple options for restoring all types of livelihoods (examples include project benefit sharing, revenue sharing arrangements, joint stock for equity contributions such as land, discuss sustainability and safety nets);

(iii) outlines measures to provide social safety net through social insurance and/or project special funds;

(iv) describes special measures to support vulnerable groups; (v) explains gender considerations; and

(v) describes training programs.

K. Resettlement Budget and Financing Plan

This section:

(i) provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation.

(ii) describes the flow of funds (the annual resettlement budget should show the budget-scheduled expenditure for key items).

(iii) includes a justification for all assumptions made in calculating compensation (iv) rates and other cost estimates (taking into account both physical and cost

contingencies), plus replacement costs. (v) includes information about the source of funding for the resettlement plan budget.

L. Institutional Arrangements

This section:

(i) describes institutional arrangement responsibilities and mechanisms for carrying out the measures of the resettlement plan;

(ii) includes institutional capacity building program, including technical assistance, if required; (iii) describes role of NGOs, if involved, and organizations of affected persons in resettlement

planning and management; and (iv) describes how women’s groups will be involved in resettlement planning and management,

M. Implementation Schedule

This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities. The implementation schedule should cover all aspects

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of resettlement activities synchronized with the project schedule of civil works construction, and provide land acquisition process and timeline.

N. Monitoring and Reporting

This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.

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Appendix 14 Draft of Project Information Booklet

PROJECT INFORMATION BOOKLET PATUHA Geothermal Expansion Sub-project

What is Patuha 2 Project? The proposed Geothermal Power Generation Project will support expansion of Indonesia’s geothermal generating capacity to contribute to the sustainability and sufficiency of the electricity system, aligned with Sustainable Development Goal 7: access to affordable, reliable, sustainable and modern energy for all. The expansion of the existing geothermal facilities will consist of the following components : The project will

support Geo Dipa Energi (GDE) to commission an additional 55 MW at the Patuha . The expansion facilities will consist of the following components

vi) construction of a new power plant - Patuha Unit 2 (Loc GPP); vii) the drilling of 11 new wells:

c) 9 new wells will be drilled in existing wellpads viz. Wellpad 4 (Loc G), Wellpad 5 (Loc W), Wellpad 7 (Loc V) and Wellpad 6 (Loc U), and

d) 3 new wells will be drilled in a new (proposed) wellpad - Wellpad 9 (Loc BB); viii) construction of new gas pipelines

c) from Wellpad 9 (Loc BB) to Wellpad 4 (Loc G) to the new power plant, and d) from Wellpad 5 (Loc W) to Wellpad 7 (Loc V) to Wellpad 6 (Loc U) to the new power plant;

ix) construction of a condensate line from the new power plant to existing Wellpad 1 (Loc A); and x) addition of a new transformer at the existing sub-station.

GDE’s geothermal plant in Patuha is located in the mountain area of Ciwidey Sub-district (Kecamatan), Bandung Regency (Kabupaten), West Java Province.

What will be the benefits of the sub project? General (benefits to others)

✓ Electrical power generation (other consumers). ✓ Clean energy source (Indonesia and the world).

Benefits for Local Communities

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✓ Improved communications, and awareness building. ✓ Improved complaints handling (GRM). ✓ More labour absorption of local people, transparent recruitment, identify future needs, prepare

potential local youth for positions)

What are the impacts of the Patuha 2 project to the community surrounding Most of the land required for the sub-project is already owned by GDE. An additional 35,000 m2 (or 3.5 ha) land needs to be acquired. for (i) Wellpad 9 (Loc BB), and (ii) right-of-way (ROW) for new pipeline and inspection road between Wellpad 9 (Loc BB) and Wellpad 4 (Loc G). The additional land are located in protection forest area for which the required permits (IPPKH28). There will no involuntary resettlement impacts - no privately owned land or assets will be affected; no people will be affected. Plantation workers still have access to their workplace (tea gardens and factory). Also, there are no encroachers or people cultivating land in the forest area which will be leased for the Patuha-2 sub-project. The impacts may occur as a result of the mobilization of equipment and vehicles during construction, labor arrival, and other impacts during construction (dust, noise).

What are the key principles of social safeguards under the Patuha 2 Sub Project? Social safeguards principles for the project are as follows

a. The sub-project will avoid or minimise impacts local people’s assets and livelihoods. b. Conduct meaningful consultations with APs, stakeholders, concerned NGOs, and community groups to

solicit their participation in land acquisition and involuntary resettlement process and monitoring. c. Inform APs on land acquisition and involuntary resettlement process, their entitlements, and

compensation and assistance options. Pay attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and those without legal title to land and ensure their participation in consultations;

d. Improve or at least restore the livelihood of the APs through (a) land-based income and livelihood program; (b) replacement of assets with equal or higher value; (c) compensation at full replacement cost for lost assets; and (d) additional assistance through benefit sharing where possible;

e. Assist and compensate APs without title or any recognizable legal rights to land for non-land assets at replacement cost.

f. There shall be effective mechanisms for hearing and resolving grievances during implementation of the resettlement plan.

g. The Sub-project will not issue the notice to proceed for any construction works until full payment has been fully disbursed to all APs and compensated APs have cleared the acquired land and harvested their crops in a timely manner.

What will GeoDipa do for community surrounding the project A Community Development Program will be part of the Patuha-2 sub-project to provide project benefits to the local communities. The following activities are indicative and will be finalised based on annual ComDev planning consultations between Geodipa and the Village Governments of Alamendah, Sugih Mukti and Panundaan Villages.

TYPE OF ACTIVITIY TARGET PERSON / GROUP

9. Employment for unskilled labour at GDE Patuha (inc. project related work) Community members

10. Identification of vendor opportunities for local entrepreneurs or via partnership agreement with Village Governments or Village BUMDES.

Village BUMDES or local entrepreneurs

11. Scholarships and board and lodging allowance Students

12. Support for orphans and vulnerable community members Orphans, women headed HH, poor HH

13. Value chain analysis, development for home industries in food crop processing and marketing (including permits/certification).

Women group

d) Training, mentoring and equipment for motor mechanics, welding or e) tour guides

Youth

14. Identification and development of local tourism services opportunities. Youth groups, BUMDES

15. Support for traditional performing arts groups. Neighbourhood cultural / performing arts groups.

28 IPPKH – Izin Pinjam Pakai Kawasan Hutan (Land Use Forest Permit)

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How is the entitlement if any asset affected by project construction activities

NO. TYPE OF LOSS ENTITILED PARTY / PERSON ENTITLEMENT

1. Temporary or permanent impacts due to construction.

For those who have formal legal rights or whose claim on land is recognized as a full right.

▪ Lease payments of the affected land by the contractor based on applicable rental fees and agreement with land owners.

▪ For productive land, rental fee will not be less than net income that would have been generated from the affected productive land.

▪ Compensation for non-land assets acquired (trees, plants, structures) permanently affected will be compensated at replacement cost.

▪ Land will be restored to pre-project conditions or better after construction has been completed.

Those who have no formal legal rights (certificate) or recognizable title (informal dwellers, croppers)

▪ Compensation for non-land assets (trees, crops, structures) at full replacement cost.

▪ No rental fee for the period of the impact.

▪ Land will be restored to pre-project conditions or better after construction has been completed.

Government or State enterprises / communal property and assets (e.g. schools, mosques, village office power poles, village road etc.)

▪ Rebuilding the facility or provide cash compensation based on the agreement with affected party(ies).

How are the grievances of APs heard and resolved?

i) Level 1 – Site Office through the designated contact person (i.e. PR staff). Complaint to be resolved at the Site Office level (i.e., environment safeguard staff or social safeguard staff , PMC, Contractor) within five working days and advise the Complainant accordingly.

ii) Level 2 – GRC. When a complaint is not resolved at Level 1, Complainant can submit the complaint to the GRC. The GRC will convene, review the submission and make a decision within 30 days from the date of receipt. The Complainant will be informed of the decision in person or by mail. The Complainant shall be consulted by the GRC when identifying grievance redress options. The GRC may collaborate with relevant agencies (i.e district land office and TP4P/TP4D for land acquisition and involuntary resettlement, District agency of environment) to resolve the complaint.

iii) Third level – Appropriate Courts of Law. When the complaint remains unresolved, the Complainant will be referred by the GRC to the appropriate courts of law.

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Monitoring and Reporting Internal monitoring will be undertaken by the PMU, assisted by the Social Safeguards. The scope of monitoring includes:

i. Fullfillment of obligations as stipulated in the Land Use Permit – IPPKH ii. Is there any impacts during construction and how to mitigate iii. Monitoring of procedure for obtaining IPPKH for Loc BB will be carried out in accordance with

applicable regulations. Ensure there will be no civil works in the field before issuance of dispensation permit or IPPK.

iv. Monitoring status (progress) of the renewal extension procedure.. v. Design and implementation of livelihood restoration program as part of benefit provided for the project vi. Adherence to grievance procedures, and resolution of outstanding issues requiring management’s

attention. Who should be contacted for any inquiries about the Project? (

PT. GeoDipa Energy Jakarta :

Aldevco Octagon 2nd Floor Jl. Warung Jati Barat No. 75 Jakarta Selatan 12740 - Indonesi T. +62 21 7982925 F. +62 21 7982930 What division?? Patuha Unit