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Ministry Of Foreign Affairs Of Denmark
Report
March 2014
SEA for Indonesian Master Plan for
Accelerated Economic Development
(MP3EI)
Pre-Scoping Report
Sumatra Economic Corridor
SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
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SEA for Indonesian Master Plan for
Accelerated Economic Development
(MP3EI)
Pre-Scoping Report (Final Draft)
Sumatra Economic Corridor
Prepared for Ministry Of Foreign Affairs Of Denmark
Represented by Mr Peter Oksen
Project manager Joshua Jon van Berkel
Project number 61800814
Approval date 01/2014
Revision 0
Classification Open/Restricted/Confidential
SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
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CONTENTS
1 Introduction ................................................................................................................. 1 1.1 Background on MP3EI Project ....................................................................................................... 1 1.2 SEA Process for Economic Corridors and Current Phase ............................................................ 1 1.3 Pre-scoping Activities ..................................................................................................................... 2 1.3.1 Early stakeholder discussions ........................................................................................................ 2 1.3.2 Review the MP3EI Planning for the Sumatra EC, provincial Spatial Plans Development
plans ............................................................................................................................................... 3 1.3.3 Developing preliminary list of key potential issues in Sumatra EC ................................................ 3 1.3.4 Stakeholder mapping ..................................................................................................................... 3 1.3.5 Organizing Pre-scoping and data collection workshop .................................................................. 3 1.3.6 Finalizing and disseminating Pre-Scoping Report ......................................................................... 4 1.4 Further SEA steps .......................................................................................................................... 4
2 Overview of MP3EI Planning in the Sumatra EC ....................................................... 5 2.1 Delineation of the Sumatra EC ...................................................................................................... 5 2.2 MP3EI Planning for EC .................................................................................................................. 6 2.2.1 Main MP3EI Planned Economic Activities ..................................................................................... 6 2.2.2 Main MP3EI Policies and Regulations ........................................................................................... 7 2.2.3 Main Planned MP3EI Infrastructure ............................................................................................... 7 2.3 Overview of Autonomous Provincial Planning ............................................................................... 8 2.4 Overview of Major On-going or ‘To-be-implemented’ Projects .................................................... 11
3 Overview of Baseline Features in the Sumatra EC ................................................. 13 3.1 Environmental Quality .................................................................................................................. 13 3.1.1 Water ............................................................................................................................................ 13 3.1.2 Air and Climate............................................................................................................................. 14 3.1.3 Land and Soil ............................................................................................................................... 15 3.2 Ecosystems .................................................................................................................................. 16 3.2.1 Biodiversity ................................................................................................................................... 16 3.2.2 Forests ......................................................................................................................................... 17 3.2.3 Coastal Areas ............................................................................................................................... 17 3.3 Social and Economic Aspects ...................................................................................................... 18 3.3.1 Human Health .............................................................................................................................. 18 3.3.2 Livelihood ..................................................................................................................................... 19 3.3.3 Industry and Mining ...................................................................................................................... 19 3.3.4 Energy and Waste ....................................................................................................................... 20
4 Preliminary Overview of the Potential Key Issues for Sumatra EC ....................... 21 4.1 Deforestation / Degradation of Forests Functions ....................................................................... 21 4.2 Human Health Risks .................................................................................................................... 22 4.3 Livelihood Opportunities .............................................................................................................. 23 4.4 Land and Soil Degradation .......................................................................................................... 24 4.5 Water and Air Pollution ................................................................................................................ 24 4.6 Loss of Biodiversity ...................................................................................................................... 26 4.7 Coastal Degradation .................................................................................................................... 27 4.8 Environmental Management ........................................................................................................ 27
ii SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
5 Main Conclusions and Preliminary Recommendations Resulting from Pre-
scoping ...................................................................................................................... 29 5.1 Identified Risks and Opportunities ............................................................................................... 29 5.2 Initial Policy Recommendations ................................................................................................... 30
FIGURES
Figure 2.1 Main Planned Activities (Coordinating Ministry for Economic Affairs, 2013) ................................. 5 Figure 2.2 Main Planned Infrastructure (Coordinating Ministry for Economic Affairs, 2013) .......................... 8
TABLES
Table 3.1 Water quality in priority watershed in Sumatra ............................................................................ 13 Table 3.2 Health cases in Sumatra .............................................................................................................. 18 Table 3.3 Waste generation statistics in Sumatra ....................................................................................... 20 Table 4.1 Potential forest issues .................................................................................................................. 21 Table 4.2 Potential human health issues ..................................................................................................... 22 Table 4.3 Potential livelihood issues ............................................................................................................ 23 Table 4.4 Potential land and soil issues ...................................................................................................... 24 Table 4.5 Potential water and air quality issues .......................................................................................... 25 Table 4.6 Potential biodiversity issues ......................................................................................................... 26 Table 4.7 Potential coastal area issues ....................................................................................................... 27 Table 4.8 Potential environmental management issues .............................................................................. 28
APPENDICES
A MP3EI Planning Information in Sumatra Economic Corridor
B Supporting Information on Pre-scoping Activities
C List of References
Introduction
1
1 Introduction
1.1 Background on MP3EI Project
In 2011, the Government of Indonesia introduced the first version of the Master Plan for
Acceleration and Expansion of Indonesia Economic Development 2011-2025 (MP3EI). The
MP3EI represents a core of Indonesia’s long-term development strategy with its prime objective
“to realize the Indonesia 2025 vision to create a self-sufficient, advanced, just, and prosperous
Indonesia and to transform Indonesia into a developed country by 2025”. The MP3EI includes a
strategic focus on 22 economic activities (i.e. the Policy) and the implementation of these
activities in the defined Economic Corridors (ECs).
While executing the recently released updated version of the MP3EI, however, it was realised
that the MP3EI and associated National Medium Term Development Plan (RPJMN) needed to
deepen their consideration of social and environmental factors to assure the overall vision of
sustainability in Indonesia. Thus, along with several other initiatives, the Strategic Environmental
Assessment (SEA) was chosen as a method for realizing the required level of integrated policy
and planning development. The SEA is required by Indonesian legislation for policy, planning
and program development.
To accomplish the required SEA Greening, Bappenas, together with the Ministry of Economic
Coordination a key MP3EI coordinating body of the Government of Indonesia (KP3EI), was
charged with developing an appropriate SEA approach. This approach entails the execution of
one MP3EI ‘Policy’ SEA and six Economic Corridor (EC) SEAs. Further, Bappenas approached
the Royal Danish Embassy and DANIDA for assistance via the third instalment of the
Environmental Support Program (ESP3).
The project MP3EI SEA was launched in June 2013 and shall last until July 2014. This
document consists of the pre-scoping reporting of one of the six EC SEAs.
1.2 SEA Process for Economic Corridors and Current Phase
In accordance with general objectives of SEA i.e. addressing the strategic levels of decision-
making to effectively minimise risks to environmental resources and human health likely
resulting from policy, plan or program implementation, whilst providing opportunities for growth
and sustainable development options, the MP3EI SEA intends to provide creditable strategic
environmental analyses of the MP3EI Policy and Economic Corridor Planning and, where
necessary, recommendations on how to minimize or avoid associated negative effects and the
means to strengthen positive effects. Optimally, the SEAs shall foster the integrated evolution of
a truly sustainable MP3EI, along with the associated planning procedures (e.g. RPJMN and
provincial planning) as well as – to the extent possible – individual projects.
The SEA process for the Economic Corridor includes following analytical steps:
• Pre-scoping involves the initial analysis of the Economic Corridor (EC) Plans and related
baseline features to focus the SEAs and provides likely feedback on the key issues – this
step includes also first consultations with the relevant stakeholders through workshops in
each EC.
• Scoping Analysis involves comprehensive identification of the key strategic issues via
structured expert analyses and stakeholders´ consultations for each EC.
2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
• Analysis of likely effects of proposed activities in ECs involves the verification if an
identified issue is strategic through appropriately developed qualitative and (semi)
quantitative analysis techniques.
• Formulation of Mitigation Measures is based on the characterisation of the strategic
issues and likely impacts identified from the previous stage. This will allow for experts to, as
far as possible, pinpoint feasible and implementable measures to avoid or mitigate likely
adverse impacts as well as to enhance potential positive ones.
• Compilation of the SEA Report to summarize all findings including conclusions from
consultations with relevant stakeholders and formulate final set of the recommendations.
This document, as provided above, presents the initial pre-scoping EC feedback and is the
current stage of the SEA EC process. It has been conducted during September – October 2013
and involved initial preliminary analysis of the likely strategic issues for the Sumatra EC. It has
been carried out by the MP3EI SEA Team experts, with support from consultation with the
central authorities and national NGOs; as well as the information obtained from the Pre-scoping
& Baseline Workshop MP3EI SEA for Sumatra EC (Medan, October 2nd
, 2013 – see Appendix
B.3 for detailed information). Besides analytical work and consultations, the data collection –
especially provincial Spatial and Development Plans – has also been undertaken as part of pre-
scoping tasks.
This report summarizes findings from the pre-scoping analyses and consultations i.e. it provides
an overview of the preliminary scope of assessment, baseline data and relevant plans´ review.
Findings from pre-scoping will provide a basis for further and detailed analysis of the key
strategic issues in the scoping phase.
1.3 Pre-scoping Activities
The pre-scoping activities of Sumatra EC were performed to assist definition of the preliminary
scope of the assessment of the EC (i.e. the list of the key strategic issues) in order to support
subsequent scoping analysis and, as deemed necessary, provide data for further analytical
work.
Activities to carry out the aforementioned are described in the following subsections.
1.3.1 Early stakeholder discussions
A variety of pre-scoping issues were discussed with the KP3EI, Bappenas and particularly the
leading ministry of Sumatra EC (Ministry of Forestry) as well as other stakeholders related to
Sumatra EC. The focus of these discussions was:
• Obtaining a list of projects initiated or soon to be initiated, stages of completion for
implemented projects; selection criteria for projects (if applied) in Sumatra
• Determining linkages between MP3EI EC and other plans at the national and provincial
levels
• Uncovering opportunities for SEA input at the EC level (e.g. room for input or modification;
integration of environmental criteria)
• Identifying what KP3EI/Bappenas/KLH considers the key environmental and social concerns
and problems related to the implementation of the MP3EI within Sumatra EC.
• Discover the accessibility of provincial level data and information (both from the GOI and
other stakeholders)
Introduction
3
The summary of discussions is as follow:
• Ministry of Forestry have shown and share the recent information of projects a list of
projects initiated or soon to be initiated, stages of completion for implemented projects;
selection criteria for projects (if applied) in Sumatra and as a leading ministry for Sumatra
EC, they will support the SEA process by share the recent information to SEA team.
• Ministry of Forestry will give access to forestry data and information in Sumatra and other
Islands
• To determining the linkages between MP3EI and provincial plans, Bappenas will provides
notes/letters to provincial government within Sumatra EC to provide the relevant documents
1.3.2 Review the MP3EI Planning for the Sumatra EC, provincial Spatial Plans Development plans
A review of the MP3EI Economic Activities proposed for Sumatra EC and the provincial plans
within the EC has also been undertaken during the pre-scoping phase in order to assist to the
scoping process with a full understanding of the objectives of the relevant plans, proposed
developments and constraints for each area. However, since the most planning documents are
available in the provincial level, only the information regarding the status of the plans are
presented at this stage.
1.3.3 Developing preliminary list of key potential issues in Sumatra EC
Using the master list of key strategic issues identified for the MP3EI Policy SEA, a more specific
overview has been developed for Sumatra EC using secondary literature (e.g. Environmental
Yearbook, etc.). The information has been briefly summarised in line with the following
principles:
• Highlighting existing environmental and social issues of importance in Sumatra EC
• Specify detailed problems and concerns for each issue within Sumatra EC
• Identified the needs for further data/information
• Identification of key stakeholders relevant to specific issues in Sumatra EC
1.3.4 Stakeholder mapping
With assistance from the project stakeholders, the SEA team have prepared an initial list of
relevant stakeholders for Sumatra EC during the pre-scoping phase. The initial list of relevant
stakeholders in Sumatra can be viewed in detail in Appendix C.
1.3.5 Organizing Pre-scoping and data collection workshop
A workshop was organized in Medan on October 2nd, 2013, in order to:
• To get feedback on proposed issues, concerns and problems relevant to a given EC
• To get information on ongoing and planned development
• To obtain baseline data from provincial agencies
Conclusions from the discussions and main comments received are summarized in Appendix
B.3 of this Report.
4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
1.3.6 Finalizing and disseminating Pre-Scoping Report
Considering findings from the activities above, the Pre-Scoping Report has been drafted and
open for additional comments through the MP3EI SEA Project website.
1.4 Further SEA steps
The next immediate step after pre-scoping is to undertake scoping activities. This will include a
number of activities, including: (a) collection of additional data and information needed as
identified in the Pre-Scoping phase; (b) literature review of data and information collected for
supporting the list of potential key issues in the Economic Corridor; (c) undertaking internal
scoping among the SEA experts; (d) undertaking SEA Scoping Workshop with stakeholders;
and (e) completing and submitting final Scoping Report.
Key steps in planning for the scoping phase include:
• Follow up with participants from the pre scoping workshops to collect baseline datasets
identified during the workshops.
• For Sumatra EC target additional baseline data focusing on key economic sectors proposed
by the MP3EI
Overview of MP3EI Planning in the Sumatra EC
5
2 Overview of MP3EI Planning in the Sumatra EC
This section provides an overview of the development proposed by the MP3EI for Sumatra EC,
and it also outlines the status and main features of the provincial plans (both spatial and
development plans) based on MP3EI document on August 2013. The presented information will
possibly deviate from the latest MP3EI since it will be continually edited and updated. However,
currently available information is given to provide wider understanding of expected development
within Sumatra EC.
2.1 Delineation of the Sumatra EC
Sumatra island is divided into ten (10) provinces: Aceh, North Sumatra, Riau, Riau Island, West
Sumatra, Jambi, Bengkulu, South Sumatra, Bangka Belitung Island and Lampung. For the
MP3EI, the Sumatra EC consists of 11 economic centres: Banda Aceh, Medan, Pekanbaru,
Jambi, Palembang, Tanjung Pinang, Pangkal Pinang, Padang, Bandar Lampung, Bengkulu and
Serang.
There are 6 Potential Investment Focus Area (Potential KPI) and 13 Priority Investment Focus
Areas (Priority KPI), including KSN Selat Sunda and Iron-Steel Industry in Cilegon (Banten,
Java). Potential KPI Anambas is proposed by local government as well as Potential KPI Danau
Toba, a National Tourism Area, is proposed by Ministry/Agencies.
Figure 2.1 Main Planned Activities (Coordinating Ministry for Economic Affairs, 2013)
6 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
2.2 MP3EI Planning for EC
The development of economic corridors in Indonesia is based on the potentials and advantages
inherent in each region throughout Indonesia. As a country consisting of thousands islands and
located between two continents and two oceans, Indonesia archipelago has a unique
combination of economic potentials. Specific major islands or regions having its own strategic
future-role in achieving Indonesia’s 2025 vision.
Sumatra Economic Corridor has the theme Production and Processing Center of the Earth and
the Nation's Energy. In general, the Sumatra Economic Corridor thrives in economic and social
fields with the main economic activities such as oil palm, rubber and coal. Moreover, Sumatra is
expected to be the "Gateway to the national economy markets of Europe, Africa, South Asia,
East Asia, and Australia".
2.2.1 Main MP3EI Planned Economic Activities
The location/node of economic activities is indicated in specific colours in Figure 2.1.
Main MP3EI planned economic activities that developed in 19 KPIs in the Sumatra EC are palm
oil plantation, rubber, coal, shipyard, steel and Sunda Strait development.
The investment value for economic corridor will be IDR458.198 billion in real sector and
IDR838.574 billion in infrastructure including Sunda Strait Bridge. At the ground-breaking stage
(2013-2014), there will be IDR115.639 billion invested in this corridor. The biggest value in real
sector will be invested in coal mining (IDR93.7 billion), tourism infrastructure (IDR75.9 billion),
and iron-steel (IDR58.5 billion).
Palm Oil In Sumatra, the main economic activities of the Palm huge economic contribution, where 65
percent of the land in the Indonesian palm oil producer located in Sumatra. This activity is also
wide open jobs. Approximately 38 percent of palm oil land owned by small farmers
Rubber Indonesia is the second largest producer for natural rubber in the world, supplied about 28
percent of world rubber production in 2011. Sumatra Economic Corridor contributes about 63
percent of the nation’s rubber production. Significant demand for natural and synthetic rubber in
the future will likely happen due to fast growing of the automotive industry.
Coal Indonesia, a rich country for coal and thermal coal, provides 26% of the world coal exports.
Approximately 52.4 billion tons of coal resources are in Sumatra, and about 90% are located in
South Sumatra. Annual Indonesia coal production reaches 246.68 million tons/year.
Shipping Demand for shipbuilding, ship-making industry or ship repair, is determined by vessels demand
and shipping traffic intensity in Indonesia. The number of shipyard with capacity above 10,000
DWT/180.000GT is approximately only 10% from the number of shipyards with capacity less
than 500DWT/20,000GT. This condition indicates that Indonesian large capacity shipyards
building industry needs more investment. Besides, second-hand ships become the preference
for shipping companies due to ship’s large tonnage capacity and shipyard industries in
Indonesia is not yet capable to handle offshore oil drilling equipments transportation.
Overview of MP3EI Planning in the Sumatra EC
7
Iron – Steel Steel in Banten is also expected to be one of the main activities to support Sumatra Economic
Corridor growth, especially after Sunda Strait bridge construction. In terms of market potential,
steel industry has great economic opportunity considering Indonesia's per capita steel
consumption is only 29 kg/kapita. These figures are relatively low compared to 170 kg/capita as
world average consumption, although demand from the steel industry climbs quite good, mainly
due to demand from automotive, electronic, and infrastructure.
National Strategic Area Sunda Strait / KSN Selat Sunda Sunda Strait as a national strategic area will be developed with the construction of a bridge
connecting the island of Java and Sumatra. The bridge supports the development of the four
clusters in the area of Banten province, includes the Cilegon, Bojonegara, Maja as residential
area, and Tanjung Lesung as center for tourism. In addition, 3 regional clusters from Lampung
will be also developed, including Bandar Lampung, Metro, and Pringsewu (Ministry of Public
Works, 2012).
2.2.2 Main MP3EI Policies and Regulations
A brief summary of proposed policies and regulations for main economic activities for Sumatra
EC as stipulated by MP3EI. A number of planned regulations is aimed to enhance the
implementation of MP3EI projects development while several others are dedicated to control
and manage the economic activities, also to maintain and improve the supporting infrastructure
for Economi Corridors plan implementation. The regulation policies and regulations in MP3EI
are prepared based on the economic activities. The detail planned policy/regulation and
infrastructure can be seen in Appendix A.
2.2.3 Main Planned MP3EI Infrastructure
To support these main economic activities, the main infrastructure planned are Kualanamu
Airport, Kualatanjung Port, high grade highway (toll roads), Sunda Strait suspension bridge,
steam power plant (coal power) and telecommunication coverage. The biggest value in
infrastructure will be invested for road (IDR274.96billion), energy (IDR158.16billion), and railway
(IDR81,74billion). The main planned infrastructures are illustrated in figure below.
8 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
Figure 2.2 Main Planned Infrastructure (Coordinating Ministry for Economic Affairs, 2013)
2.3 Overview of Autonomous Provincial Planning
The MP3EI planned development projects for the Sumatra EC are to be implemented for all
province in Sumatra but mostly it will focused in North Sumatra, Riau, South Sumatra and
Lampung provinces and small part in Banten. Therefore, it also imperative to acquire
comprehensive information regarding the autonomous provincial plans, including the RPJPD
(Long-Term Regional Development Plans), RPJMD (Medium-Term Regional Development
Plans) and RTRWP (Provincial Spatial Plans). Considering the key components and priorities of
these provincial plans in the EC in further SEA analyses will help to identify potential conflict or
disharmony between the MP3EI planning within the corridor. To understand profoundly about
autonomous provincial planning status, the key information on the provincial planning relevant to
the MP3EI planned development would be a consideration.
Provincial Planning of Aceh The RPJMD’s Aceh 2012-2017 is focused on following 10 programs: good governance,
implementation sharia law, food security, poverty reduction, infrastructure, education, health,
optimization of natural resources, peace sustainability, environmental and natural hazards.
The RTRWP of Aceh is in development process and waits for an approval from Ministry of
Forestry regarding the forest cover changes. The RTRWP of Aceh consists of plan of
development areas and plan of protected areas.
Overview of MP3EI Planning in the Sumatra EC
9
Provincial Planning of North Sumatra (Sumut) The RPJPD’s North Sumatra 2005-2025 has been legalized through The Provincial Regulation
No. 12/2008. The existing 2008-2013 RPJMD of North Sumatra will expire in 2013 and new
RPJMD North Sumatra 2013-2017 is currently being prepared, since the new governor was
elected at the beginning of 2013, the PRJMD shall be finalized by the end of 2013.
North Sumatra’s RTRWP 2013-2033 is also in preparation process and waits for an approval
from the Ministry of Forestry regarding the forest cover changes. From the documents received
from Bappeda it is obvious that the spatial plan of North Sumatra contains plan for development
areas and plan for protected areas. Plans for development areas consist of infrastructure
development, more specifically toll road as a part of the national policy in eastern part of the
North Sumatra, new palm oil plantations also in the eastern part of the province and industrial
estates around capitals of kabupaten/kotas. The protected areas´ plan consists of protected
forest, mangroves, nature reserves, and wildlife conservation area.
Provincial Planning of Riau The RPJPD’s Riau 2005-2025 has been legalized through the Provincial Regulation No. 9/2009.
The existing RPJMD of Riau 2009-2013 will expire in 2013. There will be a governor election at
the end of October 2013 and thus the government will be obliged to develop a new RPJMD
2013-2017 afterward.
The RTRWP of Riau is in developing process and waits for an approval from Ministry of Forestry
regarding the forest cover changes. The RTRWP of Riau consists of plan of development areas
and plan of protected areas.
Provincial Planning of Riau Islands The RPJMD of Riau Islands is valid for the period 2010-2015. The RPJMD consists of 5 year
development plan with budget allocation focused on economic equality, social welfare, basic
education, health, reduce un-employment, gender mainstreaming, agriculture, marine and
fisheries and infrastructure.
The RTRWP of Riau Islands is in developing process and waits for an approval from Ministry of
Forestry regarding the forest cover changes. The RTRWP of Riau Islands will consist of plan of
development areas and plan of protected areas.
Provincial Planning of Bengkulu The RPJPD’s Bengkulu 2005-2025 is legislated with Provincial Government Regulation No.
4/2008. The current RPJMD of Bengkulu applied for the timeframe of 2011-2015. The planning
document consists of 5 years development plan with budget allocation for infrastructure, poverty
reduction, social welfare, sustainable natural resources management and good governance.
The RTRWP (Provincial Spatial Plan) of Bengkulu was legislated with Provincial Government
Regulation No. 2/2012. It covers the spatial planning objectives and programs for cultivation
area and protected area. The spatial plan for cultivation area include the planned development
of toll road, power plant (coal power, hydropower, geothermal), production forest, agriculture,
fisheries, mining and industrial estate, while the protected area consists of protected forest,
upstream protected area, nature conservation, geology protected area and disaster vulnerability
area.
10 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
Provincial Planning of West Sumatra The current RPJMD of West Sumatra applied for the timeframe of 2010-2015 and was legislated
with Provincial Government Regulation No. 5/2011. The prioritised programs of the planning
document include education, health care, road and bridge infrastructure, housing, transportation,
environment and natural hazard mitigation, food security, energy and mineral resources, and
marine and fisheries.
The RTRWP of West Sumatra 2012-2032 was legislated with Provincial Government Regulation
No. 13/2012. It covers the spatial planning objectives and programs for cultivation area and
protected area. The spatial plan for cultivation area include the planned development of road
and toll road infrastructure, rail road, inter island transportation, production forest, agriculture,
fisheries, mining (coal, oil and gas) and tourism infrastructure. The spatial plan for protected
area includes the planned development of protected forest, nature conservation, cultural sites
and hazards vulnerability.
Provincial Planning of Jambi Jambi Long Term Development Plan applied for 20 years timeframe from 2005-2025, although
this document provided in Jambi government’s website, the legal status information is currently
unavailable. The current RPJMD of Jambi will be applied from 2010-2015 and was legislated
with Provincial Government Regulation No. 1/2011. The priorities of Jambi’s 5 year development
plan include public infrastructure, education, health, religion and culture, agriculture, sustainable
natural resource management and Good Governance.
The Spatial Plan (RTRWP) of Jambi province is currently under preparation and waiting for
technical approval from Ministry of Forestry regarding the forest cover changes. The RTRWP of
Jambi will cover the planning objectives for cultivation area and protected area. In 2010, an SEA
- facilitated by ESP2 and MoHA - was undertaken and applied for Jambi’s Provincial Spatial
Plan as part of the spatial plan preparation
Provincial Planning of South Sumatra The Long Term Development Plan of South Sumatra Province (RPJPD 2005-2025) was
legislated with Provincial Government Regulation No. 17/2007. The current Midterm
Development Plan for 2008-2013 has just finished and the new proposed RPJMD for 2013-2017
is undergoing preparation process and estimated to be finalised by the end of 2013.
The RTRWP of South Sumatra is currently undergoing preparation process and waiting for
technical approval from Ministry of Forestry regarding the forest cover changes. The RTRWP of
South Sumatra will cover the planning objectives for cultivation area and protected area.
Provincial Planning of Bangka Belitung The Provincial Long Term Development Plan of Bangka Belitung (RPJPD 2005-2025) was
legislated with Provincial Government Regulation No. 13/2007. The current RPJMD of Bangka
Belitung will be applied for 5 years from 2012-2017. The prioritised sector of 5 year development
plan in Bangka Belitung include peace, education, good governance, infrastructure, job creation,
environment, legislation, and small and medium enterprise. An SEA for local development plans
was applied as part of the preparation of the RPJMD with the assistance and facilitation from
ESP2-DANIDA and MoHA.
The RTRWP of Bangka Belitung is currently undergoing finalisation process and still waiting for
technical approval from Ministry of Forestry regarding the forest cover changes. The RTRWP of
Bangka Belitung will cover the spatial planning objectives for cultivation area and protected area
Provincial Planning of Lampung The RPJPD of Lampung Province for 2005-2025 was legislated with Provincial Government
Regulation No. 6/2007. The current RPJMD is to be applied for 5 years starting from 2010 to
2014. The priorities of 5 year development plan in Lampung include a strengthened regional
Overview of MP3EI Planning in the Sumatra EC
11
economic, infrastructure, education, health, social welfare, sciences, religion and culture, natural
resource management, law enforcement, and good governance.
The Provincial Spatial Plan of Lampung was legislated with Provincial Government Regulation
No. 1/2010. The spatial plan for cultivation & industrial area include the planned development of
road and Sumatra toll road network in east coast, rail road network, power plant (coal, hydro
power, geothermal), agriculture, plantation, mining, industry and housing. The protected area
spatial plan covers the protected forest, mangrove, nature conservation area and natural hazard
vulnerability area.
Provincial Planning of Banten The Long Term Development Plan of Banten Province (RPJPD 2005-2025) was legislated with
Provincial Government Regulation No. 1/2010. The current RPJMD of Banten Province is to be
applied for 5 years starting from 2012-2017 and was legislated with Provincial Government
Regulation No. 4/2012. The priorities of 5 year development plan in Banten include food
security, poverty alleviation, reduce unemployment, improving people welfare, improving human
resource capacity, economic equality and growth, infrastructure, environment and natural
resource management, good governance and development of strategic zones.
The Provincial Spatial Plan of Banten province outlines the spatial planning for 20 years
timeframe (RTRWP 2010-2030) was legislated with Provincial Government Regulation No.
2/2011. The spatial plan for cultivation and industrial area in the RTRWP consists of the planned
development of road and Jawa toll road network, airport, sea port, rail road network, power plant
(coal, nuclear, geothermal), agriculture, plantation, mining, industry and housing. Meanwhile, the
spatial plan for protected area consists of planned development of protected forest, mangrove,
nature conservation area, natural hazard vulnerability area, cultural heritage site,
2.4 Overview of Major On-going or ‘To-be-implemented’ Projects
Of the 10 provinces in Sumatra, only 6 provinces is included in Sumatra Economic Corridor.
Within that 6 provinces, only West Sumatra and Lampung have the legalized spatial plan
(RTRWP), while others needs an approval from Ministry of Forestry for forest covers changes.
Most of the projects which are on-going or were prioritised for development are found in the
Sumatra EC. There is no data provided about which projects are already initiated.
From initial review of the Spatial Plans of Lampung and West Sumatra, the major to-be-
implemented projects are only available in Lampung, while the West Sumatra the regional
projects are limited. The major projects in Lampung are:
• Traffic reduction programme on Lintas Tengah (center highway) and Lintas Timur (east
highway) by developing toll road network from Bakauheni – Babatan – Tegineneng
Terbanggi Besar as part of Sumatra Toll Roads Network and develop toll road connection to
Terbanggi besar – Menggala – Simpang Pematang;
• Development of road network connecting Lampung – Banten through Lampung-Banten
Bridge
• Military Airfield Astra Ksetra in Kabupaten Tulang Bawang as fighter training homebase
Indonesia Airforce
• Military Airfield Gatot Subroto in Kabupaten Way Kanan as fighter training homebase
Indonesia Airforce
• Special Airport to support plantation activities in Kabupaten Lampung Tengah, Lampung,
Timur dan, Tulang Bawang
12 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
• Special Airport Blimbing in Kabupaten Lampung Barat to support tourism sector
• Airport Pekon Seray in Kabupaten Lampung Barat for navigation purposes and natural
disaster readiness infrastructure.
• Hydropower plant in Way Besai and Batu Tegi
• Steampower plant in Kabupaten Lampung Selatan, Kabupaten Tulang Bawang, Kabupaten
Tanggamus, Kabupaten Lampung Tengah, dan Kabupaten Way Kanan;
• Geothermal power plant in Kabupaten Tanggamus, Kabupaten Lampung Tengah and
Kabupaten Lampung Selatan
• Diesel power plant in Pulau Sebesi, Tarahan, Teluk Betung, Metro, Tegineneng, Teluk
Padang, Bengkunat, Krui, Pugung Tampak, Simpang Pematang, and Wiralaga
• Strategic development area Bakaheuni as a gate of Selat Sunda Bridge in Sumatra
From the initial review of MP3EI in Sumatra EC, the major projects to be implemented as follow:
• Gold mining in South Tapanuli
• Zinc and lead mining and processing plant in forest area in Dairi
• Reclamation for fertilizer plant and port in Tanjung Carat
• Coal mining in forest area in Banyuasin and Muara Enim
• KSN Sunda Strait (suspension bridge and surrounding area)
• Sumatra toll road from Bakaheuni – Medan
Overview of Baseline Features in the Sumatra EC
13
3 Overview of Baseline Features in the Sumatra EC
This section outlines the strategic baseline features in Sumatra EC structured into the following
categories: Environmental Quality (includes Water, Air and Climate, Land and Soil); Ecosystem
(Biodiversity, Forests, Coastal degradation); Socio-Economic Aspects (Human health,
Livelihood, Industry and mining, Energy and waste) and Environmental Management. This
introductory analysis based on literature and elementary statistical data interpretation, focuses
on the strategic baseline categories and is aimed to assist the process of identification of key
issues relevant for the EC SEA. Further analytical activities, including GIS mapping, are
currently being undertaken within the scoping stage.
3.1 Environmental Quality
3.1.1 Water
The Sumatra EC is characterized by several major fresh water bodies, especially its rivers and
lakes, and a significant groundwater basin.
Presidential Instruction No. 1 Year 2009 on Accelerating the Implementation of Priority National
Development 2010, commissioned the Ministry of Environment to undertake the monitoring of
water quality in 13 national watersheds. Four of these priority watersheds are located in the
Sumatra EC.
Table 3.1 summarizes results of water quality monitoring from these priority watersheds,
represented by some parameters such as BOD, COD, DO, and others. These results indicate
that water quality in all four watersheds did not meet the targets established by the MoE for
these watersheds.
Table 3.1 Water quality in priority watershed in Sumatra
Source : PPE Sumatra, 2013
Water Pollution In 2012, the MoE monitored water quality in106 locations across Sumatra. Of these 106
locations, 85 (80%) were heavily polluted, 20 (18%) medium polluted and 1 (1%) regarded as
slightly polluted. The heavily polluted samples were located in Sungai Krueng in Aceh, Sungai
Deli in North Sumatra and Way Sekampung in Lampung.
No Name of River
Catchment
Area
(km2)
Main
River
Lenght
(km)
Location Status Target
1 Batanghari 44,492.50 775
Jambi (80.93%)
West Sumatra
(19.7%)
Lightly - Highly polluted
Class II-IV
Clean - Lightly polluted
Class I-III
2 Kampar 25,708.70 450
Riau (90.19%)
West Sumatra
(9,81%)
Lightly - Highly polluted
Class II-IV
Clean - Lightly polluted
Class I-III
3 Musi 55,029.80 750
Bengkulu (4.27%)
South Sumatra
(95.73%)
Lightly - Highly polluted
Class II-IV
Clean - Lightly polluted
Class I-III
4 Siak 12,180.80 345 Riau(100%)Highly polluted
Class II-IV
Clean - Lightly polluted
Class I-III
14 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
The pressure on water quality in Sumatra is reportedly caused by industrial waste, domestic
waste, agricultural waste, livestock waste, and mining activities. The main drivers of the water
quality is dependent on location. For example, illegal mining has a serious impact on water
quality in Bangka Belitung (SLHD Bangka Belitung, 2012) while agroindustry in Lampung
(SLHD Lampung Province, 2012), oil palm processing industry in Riau (SLHD Riau Province,
2011), domestic waste in Aceh and Jambi (PPE Sumatra, 2013) are the main drivers in those
provinces.
Coastal waters The quality of seawater is strongly influenced by the physical conditions (suspended substances
and temperature) and toxic chemicals substance (Hg, Cd, Pb, Cu) in the sea water. Laboratory
results for sea water quality based on Ministry of Environmental Decree No. 51/2004 indicates
that the sea water mostly has not been contaminated (SLHD Riau Province, 2012). However, in
terms of pollution level, the highest polluted parameters are turbidity and total ammonia (SLHD
West Sumatra, 2012). Potential sea water pollution sources in Sumatra are domestic waste from
coastal settlement as well as port industrial activities such as shipping or shipyard construction.
Groundwater The mutual support between surface water and groundwater for efficient and sustainable use is
described in Ulitization Guidelines of Water Resources Regulation, 06/PRT/M/2011 by Ministry
of Public Works. Although prioritizing surface water for activities is stated, groundwater is the
main raw water resources to meet the water demand in Sumatra. Groundwater overexploitation
is mentioned in several secondary literature, such as Lampung and Riau Islands Provincial
Environment Status. Although there is no tabular data for whole province is provided, some
regecies in West Sumatra have records for drinking water sources. In Sumatra, the projection of
drinking water demand increasingly by 100% in 15 years, from 66.000 m3 in 2010 into 113000
m3 in 2025. While the need of water in agricultural sectors estimated 110.200 m3/year.
Based on the Sumatra water balance projection study by Ministry of Public Works Water
Research Centre, PUSAIR, water crisis will not occur qualitatively noticing the island’s 16.125
m3/s surplus water availability in 2030. This huge potential number is not necessarily ensure the
availability of actual water balance, in fact of land’s ability to store water from year to year
continues to decrease due to forest loss. (PPE, 2013).
3.1.2 Air and Climate
Urban Air Pollution Air quality in Indonesian cities is influenced by population density, traffic, and economic activities
(e.g. shipping and industries). Some Provincial Environmental Status in the Sumatra Economic
Corridor stated that air quality in rural areas is generally above the standard, but densely
populated Sumatran cities such as Medan, Palembang, and Pekanbaru are facing problems
with decreasing air quality. World Health Organization (WHO) in 2011 metioned that Medan was
ranked as the most polluted Indonesian city, with 111 mg/m3 PM10 compared to the global
average particle pollution for Indonesian cities of approximately 71 mg/m3, and the
recommended quality standard for this parameter is 20 mg/m3 (Daily Press 2011). Factors such
as widespread use of low quality transportation fuels, rapid industrialisation, and power plants
are cited as contributors to the poor air quality by the WHO.
GHG Emissions The main sources of GHG emissions are land sectors (plantation, agriculture and forestry),
energy sector (energy, transportation and industry), and waste management. On the Business
as Usual scenario (BaU), it was predicted 76% increase of GHG emission in 2020 equivalent to
33,6 million ton CO2eq (DNPI, 2011).
Forest fires are a large contributor to air emissions in local/regional and international contexts. It
is estimated that 85% of all greenhouse gases from Indonesia are produced by land use
Overview of Baseline Features in the Sumatra EC
15
changes, for purposes such as plantation or agriculture. (Partohardjono et. al. 2011). Land and
forest fires are generally caused by human activities in land clearing to be used for plantations in
Sumatra (SLHD Riau Province). The effects are worsened by the effects of dry El Nino
conditions. El Niño events, which displace warm water into the eastern Pacific Ocean and
produce cool waters near Indonesia, exert their effect by suppressing the monsoon rains (Jeff
Tollefson, 2012).
Burning of forests, in particular peatlands, produces large quantities of air emissions such as
particulate matter, carbon dioxide (peat forests are huge carbon sinks) (Heil et. al. 2006).
Previous haze incidents have led to impacts at socio-economic receptors, e.g. transportation
delays, closure of schools, and health issues in the Sumatra EC as well as in neighbouring
countries. In the summer of 2013, forest fires in Sumatra led to hazardous levels of PM2.5 in
peninsula Malaysia, and Singapore, with levels reaching over 700 PSI in Johor Bahru, Malaysia
(Wee 2013). These fires were linked to fires in Sumatra, in particular the central and northern
parts of the island. Other significant haze incidents leading to drastically reduced air quality in
neighbouring nations occurred in 1997-1998, 2002, 2004 and 2006 in neighbouring countries
which include Thailand, Philippines and Brunei (Field et al 2009; Ketterings 1999).
Rainfall Sumatra climate characterized by high rainfall evenly distributed throughout the year, there is
almost no distinction between the months of wet and dry months. However, the rainfall varies by
location. The western area of Sumatra is generally wetter, with up to 6,000 mm annual rainfall,
while the driy area in the central fault valley will receive as much as 1,500 mm annual rainfall
(PPE, 2013).
3.1.3 Land and Soil
Sumatra is one of Indonesia's largest island with an area of 480,793.28 km2, length of 1,800 km
and the widest span of 400 km (PPE Sumatra, 2013). According to 2011 Indonesia Land Cover
map released by Ministry of Forestry, 42% of Sumatra covered by agriculture, mostly palm oil
plantation, rubber and rice field. Dry forest covers 21% of island, followed by bush as the third
largest land use.
Land use in the Sumatra EC is undergoing a rapid a rapid rate of change largely due to
coversion of forest cover into agricultural and mining areas. Data from the Land and Agro-
climate Research Center, Indonesian Agency for Agricultural Research and Development (2005)
showed that the total area of degraded land in Sumatra reached 4.8 million hectares. Related to
condition mentioned above, utilization of critical area which is quite extensive as less productive
agricultural areas could be a potential scenario for adding value to MP3EI results (Koh , PL and
Ghazoul, J: 2010).
Peatland The area of peatlands in Indonesia is estimated at 20.6 million ha, representing about 10.8
percent of Indonesia's land area. Approximately 7.2 million ha or 35% of peatland area in
Indonesia is located within the Sumatra. Most peatlands are still covered by forest and a habitat
for various species of fauna and flora . More importantly, peatlands store large amounts of
carbon, as well as water. (Wetlands, 2009).
On the island of Sumatra, the spread of peatlands generally found in the lowlands along the
eastern coast, which is in the province of Riau, South Sumatra, Jambi, North Sumatra and
Lampung (Wahyunto, et.al, 2005).
Peatlands damage in Sumatra is generally caused by land conversion to plantations and forest
fires. It was recorded that oil palm plantations have destroyed 70 percent peat in three districts
namely West Tanjung Jabung, East Tanjung Jabung, and Muaro Jambi (PPE Sumatra, 2013).
16 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
Peatland conversion will disrupt all functions of the peatland ecosystem. Drainage of peatlands
causes irreversible lowering of the surface (subsidence) as a consequence of peat shrinkage
and biological oxidation (later leads to loss of carbon stock) (Hooijer et al, 2012).
The rate of conversion of peat tends to increase rapidly, while for non-peat the rate is relatively
slower increase (WWF, 2008).
Karst Karts area in Sumatra stretching out from Aceh to Lampung. Sumatra plays one of the most
essential role for karst science development, especially geology, biology, hydrology, and
archeology (PPE Sumatra, 2013). Important karst in Sumatra is noted to be located in the
following areas:
1. Padang consists of several karst areas, such as 50-60 km2 karst between Tanjungsawah
and Desa Kasih and 10-15 km2
karst area in Padangpanjang as a continuation of Batur
Karst.
2. Payakumbuh has 300-400 km2 karst area with height variations between 500-600 m .
3. Sinamar - Kvantan - Takung riverine has 200 km2 karst area.
The most common utilisation of karst in the area is as the raw material for cement industries such as in the province of South Sumatra, West Sumatra and Aceh.
3.2 Ecosystems
3.2.1 Biodiversity
The Sumatra EC is part of Indonesia’s most bio-diverse regions containing the greatest number
of known mammals (210 species), 582 species of birds (14 of which are endemic), and 300
amphibians and reptile species (23% which are endemic to Sumatra) (Critical Ecosystem
Partnership Fund, 2001). Sumatra holds a biodiversity hotspot known as ‘Sundaland,’
connecting Asia and Australia (Critical Ecosystem Partnership Fund 2005).
Based on International Union for Conservation of Nature criteria, Sumatra has four critically endangered species, the Sumatran tiger (Panthera tigris Sumatrae), Sumatran elephant (Elephas maximus sumatrensis), Sumatran rhino (Dicerorhinus sumatrensis), and the Sumatran orangutan (Pongo abelii)(PPE Sumatra, 2013).
Species such as the Sumatran tigers, pygmy elephants, rhinos, sun bears and orangutans live
in the remaining forest habitats of Sumatra. It is estimated that approximately 400 tigers remain
in Sumatra and 210 elephants (Greenpeace 2013).
In terms of flora species, the Sumatra EC provides important habitat for orchids (Orchidaceae),
semar bags (Nepenthes), Meranti (Dipterocarpaceae), carrion flower (Amorphophallus titanum),
and patma giant (Rafflesia arnoldii) (PPE Sumatra, 2013).
The potential threats to Sumatran biodiversity are illegal logging, forest encroachment resulting
from construction of new access roads, mining activities and land and forest fires which are
mostly related to palm oil plantations (Critical Ecosystem Partnership Fund, 2001). Additional
threats result from conflict between humans and wildlife. A study by WWF (2011), showed a
rapid decline in the habitat of tigers elephant and orang-utan over the last 25 years animals
resulting in a rapid decline in abundance. For example the elephant population in Sumatra
declined by 87% in the 25 years to 2011.
Overview of Baseline Features in the Sumatra EC
17
3.2.2 Forests
Based on the Ministry of Environment’s Environmental Status report, approximately 37% of
Sumatra was covered by forest in 2007 (MOE, 2008). Sumatran forests consist of 22 types of
vegetation, some of them are mossy forests, mountain forests, ground limestone mountain
forests, wet lowland forests, peat swamp forests, and others (Whitten, 1984). Ministry of
Forestry classifies forests based on its function, such as production forests (permanent
production forest and limited production), protected forests, and conservation forest (nature
reserves and conservation areas).
Forest Cover Loss Sumatra has very rapid rate of deforestation, more than two-thirds of the forest, especially in the
lowlands over the last 25 years. Analysis of natural forest cover 1985 -2008 indicates that
deforestation in Sumatra reached a rate of 500,000 hectares per year (PPE Sumatra, 2013).
Initial removal of forestlands has occurred around coastal areas and around river areas
(Partohardjono et al 2005). The provinces of North Sumatra, Aceh, West Sumatra, Bengkulu
and Lampung were most affected by this initial removal.
Extensive untouched forest exists within Aceh, in part because of the area’s past conflicts,
natural disasters, and in part because of the hilly topography, however, there have been
discussions on converting protected areas to production forests for economic gain (Schonhardt
2013).
The amount of deforestation in the last three years occurs because of the expansion of mining
area, oil palm plantations, infrastructure development, spatial change, and forest fires. Based on
deforestation maps issued by the Ministry of Forestry, the rate of deforestation between 2006-
2009 period reached to 314,298 ha/year and amounted 154,254 ha/year between 2009-2011.
These data shows that the rate of deforestation in Sumatra has decreased.
Deforestation is a threat that even occurs in protected forest areas, for example certain
companies still have permits to operate mines in protected areas (MOE 2007; MOE 2008).
Mining and other logging permits are offered by province, which may conflict with nationally
designated protected areas.
For example, Sumatran tiger habitat in protected areas such as Tesso Nilo National Park has
modified via encroachment for illegal palm oil or paper production (Greenpeace 2013). Despite
the protection offered by the law, enforcement and upkeep of these conservation areas is poor
(Greenpeace 2013). In 2011, it is estimated that 10% of all remaining forested tiger habitat in the
Sumatra EC (approximately 1 million hectares) remained at risk of clearance in pulp and oil
palm concessions (Greenpeace 2013).
3.2.3 Coastal Areas
Coastal Habitat Marine areas surrounding Sumatra are characterised by extensive areas of seagrass,
mangrove, and coral reef habitats (Tony Whitten, 1997). Along the eastern coast of Sumatra,
and the coasts along the plains in western Sumatra mangroves are the predominant habitat type
as a result of the significant sediment loads coming out of Sumatra’s major river systems (Tony
Whitten, 1997).
Fringing reefs and seagrass beds are found around Batam and within the Riau Archipelago as
well as the southern Belitung Island. Corals in the north, around Aceh and surrounding islands
are considered well-developed fringing reefs.
Mangrove forests in Sumatra have been extensively degraded in eastern Sumatra, converted
into aquaculture and agricultural areas such as oil palm (Partohardjono et al 2011). Similarly,
18 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
seagrass ecosystems area also threatened by coastal exploitation using potassium cyanide and
disposal of industrial and domestic waste. The seagrass ecosystem is highly dependent on
human activities on land, that are usually influenced by the local culture (SLHD Riau Islands,
2012).
Significant problems in coastal areas in Sumatra exist as a result of coastal ecosystem
degradation (PPE Sumatra, 2013).
3.3 Social and Economic Aspects
3.3.1 Human Health
Life Expectancy The average life expectancy in Sumatra is similar to the national average which is 70.76 years
old, although some provinces indicate smaller number (CIA World Factbook, 2011). The
provinces of Aceh, Bangka Belitung, and Jambi had life expectancy rates lower than the
average.
Communicable Diseases The prevalence of Pulmonary TB in Sumatra is high especially in North Sumatra, while almost
all of the remaining provinces had prevalence rates above the national average (Ministry of
Health 2011).
The number of reported cases for other communicable diseases is detailed in Table 3.2.
Table 3.2 Health cases in Sumatra
Source : Ministry of Health, 2011
Malaria in the Sumatra EC is widespread predominantly across the east coast area. The highest
rates of malaria cases are in Bangka Belitung with rate of 99,1 per mil and Jambi with rate of
52,2 per mil, higher than national average of 22,9 per mil.
According to the data of HIV/AIDS cases in 2010 released by the Directorate General of
Disease Control and Environmental Health - Ministry of Health, the greatest absolute number of
HIV/AIDS patients in Sumatra are mostly in North Sumatra Province (507 cases), followed by
Riau (477 cases) and West Sumatra (410 cases). However, based on the cases rate (per
100,000 population), the highest cases rate is in Riau Islands (24.96) and then Bangka Belitung
(11.65). Both provinces are above the national cases rate (10.46) while other provinces below
the national case rate.
Province
Aceh 1.573 31 31913 121 359 2.359 0 6 693
North Sumatra 4.697 1347 1258 37 163 141 0 0 476
West Sumatra 2.813 212 51840 13 65 274 0 1 964
Riau 1.563 337 9161 44 151 532 0 0 798
Jambi 254 86 40191 4 59 257 0 4 510
South Sumatra 1.854 226 114272 20 200 210 5 7 872
Bengkulu 260 55 59016 2 9 94 0 1 219
Lampung 1.862 93 27947 24 87 74 1 12 1.447
Bangka Belitung 349 85 63978 6 27 207 0 2 72
Riau Islands 1.828 743 17151 3 7 31 0 0 533
Number of Cases, 2010
Tetanus
Neonatorum
Dengue
FeverHIV Malaria
Leprosy
PB
Leprosy
MBFilariasis Diphtheria Pertussis
Overview of Baseline Features in the Sumatra EC
19
The national index of health service is 80,7%. The availability of health services in Sumatra
province varies from 62% in Bengkulu to 90,5 % population in Riau Islands. From 10 provinces
in Sumatra, the province with health services index higher than national index are Aceh, West
Sumatra, Jambi and Riau Islands.
The national index of access to water is 67,5% of households, while in Sumatra access to water
is vary from 46,1% to 73,9% of households. Riau Islands is the only province has exceeded the
national index, while others are below the national index.1
3.3.2 Livelihood
Livelihood In general the major livelihoods in the Sumatra Economic Corridor include employment in the
oil palm, rubber and coal industries. Agriculture and fisheries classification is the main source of
livelihoods for local residents, followed by Community Services, then Tourism and Product
Sales.
Significant income differences in the Sumatra EC exist, both between urban and rural areas and
between provinces in the corridor. This regional disparity can be seen from the provincial
distribution of GRDP which indicates an uneven distribution of poverty within Sumatra with the
poorest areas found in the north and the south of the island, as well as along the south-east
coast of Sumatra bordering Bengkulu. On the other hand, the percentage of the population living
below the poverty line is less around urban areas such as Medan, Pandang, Pekanbaru, and
Palembang (World Food Program 2013).
Natural Disaster Preparedness The Sumatra Fault which stretches 1650 kilometers from Aceh to Lampung along the Bukit
Barisan, and continuous along 300 km south of Java is one of the most active fault in Indonesia
(Rahmadi, E. et al. 2006). Sumatra fault and active volcanoes are inter-related, so Sumatra is
not only prone to earthquake, but also the other disasters, such as volcanic eruptions and
tsunamis. Other catastrophic disasters in Sumatra are landslide caused by mining activities and
flooding due to aggresive illegal logging as well as disposal domestic waste in river.
The Tsunami disaster that occurred on 26 December 2004 in Aceh province, caused significant
number of deaths and significantly impacted on livelihoods. The impact of the tsunami not only
in coastal areas but also for all economic activities.
3.3.3 Industry and Mining
A variety of industries are found in the Sumatra EC, such as paper processing, mining (e.g.
bauxite and tin), oil extraction and production, and palm oil processing facilities. The forests of
the EC are the main source of pulp for paper industries, for example, Asia-Pacific Resources
International Ltd and Asia Pulp and Paper (APP). APP has been criticised by a wide range of
NGOs including Greenpeace on rainforest exploitation (Greenpeace 2013).
Development of industral areas in the EC has reduced unemployment and poverty in the
Sumatra EC, especially in Jambi which has the provincial highest year-on-year industrial growth
rate in Sumatra. On the other hand, industrial growth also cause environment pressure due to
the negative impact of the waste (liquid, solid, and hazardous materials).
In terms of mining, Sumatra is known as the "World's Tin Belt”, has land and sea areas
containing abundant reserves of tin, especially Bangka Belitung islands which are the biggest tin
1 Riset Kesehatan Dasar 2010. Balitbang Kemenkes.
20 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
producer in the world. Other mining products are bauxite, iron ore, gold, oil and gas in northen
and southern Sumatra, and coal in West Sumatra.
Mining sector contributes huge benefit in terms of economic aspect while at the same time
polluting water and air and creating new costs for managing the surrounding environment.
Rehabilitation and conservation of post-mining areas are rarely done by mining companies in
Sumatra.
Comparatively other types of mining operations in Sumatra such as sand mining in Bengkulu,
coal mining, and gold mining are smaller than the paper and palm oil and tin mining industries
(Akbar 2006; Bland 2013). However tensions between the mining operator and the local
communities arose after it was reported that the Martabe gold mining company would dispose of
wastes into a river in Northern Sumatra (Bland 2013). In general a trend of disputes over
handling of land, administration, resources and wastes are becoming more commonplace.
3.3.4 Energy and Waste
Oil, natural gas, coal, geothermal, and biomass are the main source of energy in Southern
Sumatra (KEDSAM 2010), but hydropower is the most common energy source in other
provinces in the EC.
The overall waste generated in Sumatra in 2008 is provided in Table 3.3. Domestic waste is
handled by dump truck to landfills in urban area and backfilled, whereas it is usually burnt and
backfilled in rural area. Annual total waste for Sumatra is 8.7 Mton with approximately 0.48 kg
domestic waste is generated by a person daily. According to PPE Sumatra, only 4.13 Mtons or
less than half of the total waste is collected in 2008.
Table 3.3 Waste generation statistics in Sumatra
Region Population
Million
Total Waste
Generation
Mtons/yr
Waste Gen
per person
kg/day
Population
being
served
Million
Actual
waste
Collection
Mtons/yr
Non
collected
Waste Gen
Mtons/yr
Sumatra 49,3 8,7 0,48 23,4 4,13 4,57
Source: PPE Sumatra, 2013
Preliminary Overview of the Potential Key Issues for Sumatra EC
21
4 Preliminary Overview of the Potential Key Issues for Sumatra EC
The following section summarises the potential strategic issues related to the Sumatra EC.
These issues are garnered via two different methods
• Examination of the baseline features / information at the pre-scoping stage described in
Section 3
• Consultations with stakeholders through the pre-scoping workshop and follow-up meetings
It should be noted that over the course of the SEA process, other issues may become apparent,
and vice versa some issues might be determined as irrelevant. Therefore further exploration and
detailed analysis of the likely key strategic issues and topics will be undertaken throughout the
SEA process.
Generally, it is apparent that all urban areas in Sumatra EC are especially sensitive to
environmental quality issues due to improper disposal of wastes, rapid industrialisation and
utilisation of cheap transportation fuels. The remaining habitats/conservation areas face land
use pressures.
4.1 Deforestation / Degradation of Forests Functions
Uneven protection of the high and the lower elevation habitats is one such issue apparent from
the baseline. Coupled with high rates of deforestation and regional/provincial permitting for
conservation areas make it difficult to care for these remaining habitats and maintain them at a
self-sufficient level. Deforestation in Sumatra mainly caused by expansion of mining area, oil
palm plantation, infrastructure development, spatial change and forest fire. Illegal mining activities
for oil, gold, tin and coal are present across the EC and there are further difficulties in reclamation of ex-
mining sites.
Table 4.1 Potential forest issues
Specific topics, concerns and
problems Locations
Information Needed for
Supporting the Issues Data Source
High rate of deforestation and
forest degradation All provinces
Information regarding
forest encroachment Forestry Agency
Local forest use often authorised
inconsistently with national
forest law
All provinces Information regarding
forest encroachment Forestry Agency
Conflict of forest delineation All provinces Information regarding
forest delineation conflict Forestry Agency
22 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
4.2 Human Health Risks
Strides have been made in terms of human health in Indonesia, especially in terms of maternal
mortality rates. However, remaining issues related to human health are discussed below.
Table 4.2 Potential human health issues
Specific topics,
concerns and
problems
Locations Information Needed for Supporting
the Issues Data Source
High incidence of
infectious
diseases (TBC,
malaria, dengue)
TBC (North
Sumatra)
Malaria in East
Coast of Sumatra
(Bangka Belitung,
Jambi, Riau Island,
South Sumatra,
Lampung, Aceh)
Dengue in
metropolitan area:
Medan, Padang,
Palembang,
Bandar Lampung
Number of TBC cases
Number of death/incidence of malaria
and other major infectious diseases
prevalence and estimated geographic
area
Number of dengue cases
Health Service
Agencies
High incidence of
emerging
diseases (AIDS)
Highest number of
cases reported in
North Sumatra,
Riau, and West
Sumatra
More recent HIV/AIDS data by
province
Health Service
Agencies
Environmental
conditions
negatively
affecting human
health – air
pollution, noise
In metropolitan
area and east
coast of Sumatra
Air pollution regarding the
industry/transportation/bush/forest/peat
fire in plantation area in east coast of
Sumatra
Environmental
Agencies
Insufficient water
supply
infrastructure
(both in urban and
rural areas)
In metropolitan
area in all province
Water resources and water
infrastructure Public Works
Poor access to
health services in
remote areas
In all provinces in
the mountainous
area
Health service index data, Availability
of health services – no. of doctors, no.
of hospital beds / per capita
Health Service
Agencies
High number of
population living
in disaster-prone
areas
All province in west
coast (Aceh, North
Sumatra, West
Sumatra,
Bengkulu,
Lampung)
Population living in disaster-prone
areas BPBD, BPS
Preliminary Overview of the Potential Key Issues for Sumatra EC
23
Specific topics,
concerns and
problems
Locations Information Needed for Supporting
the Issues Data Source
High number of
population in a
potential risk as a
result of climate
change
All provinces in
coastal area,
mountainous area
and lowland area
Estimated risks from sea level rise and
flooding risks from land subsidence in
the coastal areas BPBD, BPS
4.3 Livelihood opportunities
As noted in the baseline section, there are income discrepancies between urban and rural
populations and conflicting interests between economic development (e.g. land use conversion)
and conservation goals. The majority of Sumatran livelihoods are met through agriculture.
Table 4.3 Potential livelihood issues
Specific topics, concerns and
problems Locations
Information Needed for
Supporting the Issues Data Source
High number of social conflicts
involving indigenous
communities – especially in
case of mining and palm oil
plantations development
All provinces, mining
areas in North
Sumatra, West
Sumatra, Bangka
Belitung
Social conflict cases and
its spatial distribution due
to industrial development
(mining, plantation)/land
acquisition of customary
territories/forests
Directorate
General of
Kesatuan
Bangsa and
Politic –
Ministry of
Home Affairs,
HUMA
High poverty rate
Aceh, North
Sumatra, South
Sumatra, Bengkulu,
Lampung
Trend of poverty rate data BPS
Lack of employment
opportunities All provinces Job opportunity data BPS
Rapid urbanisation Batam, Riau Urbanisation data for all
provinces and urban area BPS
24 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
4.4 Land and Soil Degradation
Land use conversion for large-scale plantations and mining operations are apparent in the
review of the baseline data. Many of these developments have been focused on the lower-lying
elevations. This land use conversion threatens a huge peatland area found in the lowlands
along the eastern coast. Peatland conversion will disrupt all functions of the peatland
ecosystem.
Table 4.4 Potential land and soil issues
Specific topics,
concerns and
problems
Locations Information Needed for
Supporting the Issues Data Source
Increasing rate of
land conversion to
agriculture
All provinces, especially
North Sumatra, Riau,
Jambi, South Sumatra,
Lampung
Plantation area Agriculture Agency
High rate of land
degradation by
industry and mining
All provinces with mining
concession Mining concessions
Public Works,
ESDM
Increasing risk of
land subsidence on
peatlands area
Lowlands along the
eastern coast
Agriculture/Plantation on
Peatlands area Agriculture Agency
The potential
damage to karst
ecosystems due to
the activity of
limestone mining
South Sumatra, West
Sumatra, and Aceh
Cement industries
location and production
Environmental
Agency, Industrial
Agency
4.5 Water and Air Pollution
The Sumatra EC has the most extensive groundwater basin in Indonesia. However these
resources are threatened by industrial discharges, agricultural run-off, land-use conversion and
mining activities, as well as improper disposal of household waste. Growing population and
inadequate sewage system also introduces further stresses on potable water availability.
Conversion of lands e.g. mangrove habitats to shrimp ponds or slash-and burn fires and
developments in proximity of protected catchments, also further threatens water resources in
Sumatra.
Urban areas of Sumatra had some of the worst air quality in all of Indonesia and the world.
Factors such as heavy use of poor quality transport fuels and industries are behind some of the
poor urban air quality. In recent years, implementation of fuel standards (e.g. reduction in lead
concentration) has slowly helped to reduce air pollutant levels, however.
Rural areas, however, are also not spared from these, as forest fires result in extremely poor air
quality, especially during the dry seasons when farmers remove peatland for palm oil plantations
via burning. As previously stated these forest fires are responsible for particulate matter and
GHG emissions.
Preliminary Overview of the Potential Key Issues for Sumatra EC
25
Table 4.5 Potential water and air quality issues
Specific topics,
concerns and
problems
Locations Information Needed for
Supporting the Issues Data Source
Heavy freshwater and
marine pollution
Metropolitan area in all
provinces
Water pollution status
and distribution
Environmental
Agency
Insufficient waste
water management
systems
In all provinces Water pollution, Waste
water plant
Public Works,
Environmental
Agency
The high
sedimentation in
estuaries and port
Eastern coast Sedimentation rate in
estuaries and port
Environmental
Agency
Air pollution
threatening public
health and
ecosystems
Medan and all province
with plantation and forest
changes
• Air quality data Environmental
Agency
High GHG emissions
from plantation and
deforestation
All provinces with
plantation and forest
changes
Strategy and Action Plan
for National Urban Air
Quality Improvement
(NSAP) and Regional
(LSAP) through Urban
Air Quality Improvement
Sector Development
Program for five urban
areas
Environmental
Agency
Increasing GHG
emissions from
energy, industry,
transport and waste
sector
Metropolitan area in all
provinces
Environmental
Agency
Inefficient energy use
and growing energy
demand
Over demand of electricity
in all provinces.
Energy demand
Indonesia Power
(PLN)
Increasing production
of municipal waste
In all capital city of
provinces faces this
problem
Waste generation and
waste collection
Environmental
Agency
Increasing production
of industrial waste
In industrial are around
capital city in all provinces
Waste treatment and
processing
Environmental
Agency
26 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
Specific topics,
concerns and
problems
Locations Information Needed for
Supporting the Issues Data Source
Low capacities for
waste management
All provinces do not have
sufficient waste
management.
Controlled and
uncontrolled landfill
sites, including
information on small
scale waste burning
practices
Environmental
Agency
4.6 Loss of Biodiversity
The high rate of deforestation and legal land conversion for agriculture, plantation and mining
has increased the loss of biodiversity in the Sumatra EC. The remaining habitat is fragmented
which leads to conflicts between humans and wild life.
Table 4.6 Potential biodiversity issues
Specific topics, concerns
and problems Locations
Information Needed for
Supporting the Issues
Data
Source
Habitat fragmentation
All provinces,
mostly in Riau,
Jambi and West
Sumatra
(RIMBA)
Information regarding the invasive
species threats the existence of
endemic species (location, causes)
Distribution of protected species
(endangered and critically
endangered)
Forestry
Agency,
BKSDA,
WWF
High number of threatened
species Undefined
Cases of human-wildlife conflict
(location, causes) BKSDA
High vulnerability of
biodiversity to climate change Undefined
Information on climate change
effects on biodiversity
BKSDA,
Forestry
research
and
development
agency
Ecosystems over-exploitation
(including poaching, illegal
trade of flora and fauna,
human-wildlife conflict)
Poaching in
other protected
areas of
Sumatra
Information regarding poaching,
illegal trade of flora and fauna and
human wildlife conflict
BKSDA,
WWF
Preliminary Overview of the Potential Key Issues for Sumatra EC
27
4.7 Coastal Degradation
The last few years there has been a high damage of mangrove habitat along the coastline of
eastern Sumatra that were gradually converted into fisheries and agricultural purposes. Coastal
exploitation also thretens seagrass, coral reef, and causes coastal erosion that lead to the
damage of coastal biodiversity.
Table 4.7 Potential coastal area issues
Specific topics, concerns and
problems Locations
Information Needed
for Supporting the
Issues
Data Source
High level of coastal habitat degradation
(including mangroves and coral reefs)
resulting from coastal development,
water pollution (including sedimentation),
and mining (especially offshore)
Coast of Kep.
Bangka
Belitung, South
Sumatra, Riau
Coral reefs and
mangrove condition
Degraded coastal
areas
Marine and
Fishery Service
Agency,
Environmental
Agency
High level of coastal erosion
West coast of
Sumatra and
Bangka
Belitung
Rate of coastal
abrasion and
degradation
Marine and
Fishery Service
Agency,
Environmental
Agency
4.8 Environmental Management
Environmental management is arranged by Law No. 32 Year 2009 about Environmental
Protection and Management and Government Regulation No. 38 Year 2007 about Coordination
between Government , Provincial Government and Regency Government. Badan Lingkungan
Hidup Daerah (BLHD) is the only executor of coordinating the technical guidance for
environmental management operational, functional, and technical implementation in Provincial
level (South Sulawesi, 2011). In addition, Pusat Pengelolaan Ekoregion (PPE) also implement
duties and functions of the Ministry of Environment. PPE Sumatra covers environmental
management of Aceh, North Sumatra, West Sumatra, Riau, Riau Islands, Jambi, Bengkulu,
South Sumatra, Bangka – Belitung Island, and Lampung.
Main programs stated from provincial environmental status by BLH are environmental
rehabilitation, monitoring environmental documents, environmental law enforcement, increased
public participation in environmental protection (members of communities, universities,
companies and municipal authorities) (SLHD Riau, 2012).
Monitoring environmental quality in Sumatra, especially in water pollution control is executed
according to Capacity Assessment and Environmental Carrying Capacity. Lakes zoning has
been done in to maintain water quality. Primary Presidential Decree Number 10/2011
concerning two-year moratorium on conversion has become a logging concession of nearly half
of the total forest cover in Indonesia is a strategic momentum in the context of a world
movement for the carbon emissions and greenhouse gases reduction (REDD+, 2013). However
in karst region, Government Regulation No. 28/2008 mentioned on the karst area as a geology
protected area without further explotation limitation.
In term of preserving biodiversity, Intelligence and Law Enforcement Unit (ILEU) is one of the
responsible team for illegal wildlife trading. WWF released 25 years data about rapid decreasing
number of wildlife habitat caused extreme reduction of endemic species population. This causes
local government also included communities living around the forest to press the high rate of
forest. In coastal management, mangrove replanting is conducted for damaged coastal area due
to interference of high abrasion as an implementation of the Presidential Law No. 27/ 2007.
28 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
Mining activities as one of the main livelihood in Sumatra is controlled by Law of Republic
Indoneisa No. 4/2009 on Mineral and Coal Mining for supervise mining permit for environmental
protection. Industry as another economic activity is controlled by Law of Republic Indoneisa No.
3/2010 about Water Quality Standard for Industrial Area. MP3EI Sumatra creates new
opportunities in both aspects mentioned above, but also challenge in environmental
management in Sumatra. Peta Jalan Menuju Penyelamatan Ekosistem Sumatra (Ecosystem
Rescue Sumatra Road Map) is part of the environmental management efforts for this project.
Despite commitments to preserve remaining forests, the provincial and district level
governments also have developed spatial plans which may conflict with the developments as
outlined in the nation- and island-wide spatial plans (Barano et. al. 2010). Theoretically, these
spatial plans should consider the ecosystem functions and services of the area, and how they
support the well-being and livelihoods of the surrounding communities.
Sumatra Governor Forum in 2010 has declared the roadmap of ecosystem Sumatra as a policy
guidance to protect the wildlife ecosystem sustainable. This included providing a corridor for
wildlife migration in the Sumatra Island including elephant and tiger. This roadmap have been
facing a challenges since the government planned to build a new infrastructure corridor which
adjacent the wildlife corridor.
Poor environmental management practice, lack of environmental regulation and low
enforcement of existing laws are the key structural nation-wide problems. In Sumatra there is
still poor enforcement of Indonesian environmental legislation and poor or absent institutional
and human resources management capacity.
Table 4.8 Potential environmental management issues
Specific topics,
concerns and
problems
Locations
Information Needed
for Supporting the
Issues
Data Source
High number of
environmental
conflicts
In mining concession all
provinces mostly on gold
and coal
Environmental conflicts
Forestry Service
Agency, Mining
Agency,
Environmental Agency
Weak coordination of
planning systems
Cross-sectoral
coordination in all
provinces
Planning document Planning Agency,
Environmental Agency
Insufficient quality of
SEA and EIA
In all provinces and
districts/cities
Previous or on-going
EIAs (AMDAL) for
important major
projects and Planning,
Policy and Activity
SEA in province level
Environmental
Agency, Planning
Agency
Lack of proper coastal
management
At all coastal area in all
provinces
Coastal zone
management plans
Marine and Fishery
Service Agency,
Environmental Agency
Difficulties in protected
areas´ management All provinces
Master Plan and
Action Plan of
conservation area
Forestry Service
Agency, BKSDA,
National Park,
Environmental Agency
Low level of
environmental
compliance
enforcement
In all provinces and
districts/cities Environmental Agency
Main Conclusions and Preliminary Recommendations Resulting from Pre-scoping
29
5 Main Conclusions and Preliminary Recommendations Resulting from Pre-scoping
Based on the preliminary overview of the baseline conditions and issues identified for further
SEA analyses, this section highlights likely risks and opportunities to be considered within the
planning process and formulates initial policy recommendations.
5.1 Identified Risks and Opportunities
Estimated Risks/Impacts
• Conflicts between industrial operation, especially plantation and mining, with local
communities
• Illegal mining activities.
• Cross sectoral conflict (mining vs plantation vs forest)
• Conflict in land use between national and provinces.
• High protection of higher-elevation parks and low-level to no protection of remaining low-
elevation habitats
• Decreased air and water quality due to rapid industrialisation and related items
• Significant air quality impacts and GHG emissions from burning of forests (illegal), and / or
suitable cost-effective alternatives
• Resulting soil run off and erosion from land exposed after forest fires
• Increased land subsidence due to land conversion to plantation on peatland
• Fragmentation of remaining habitats due to illegal fires.
• Threats to biodiversity due to encroachment and reduced resources.
• Illegal poaching and hunting of Sumatran wildlife
• Improper disposal of wastes in both rural and urbanised communities and inadequate
sewage systems
• Coastal zone vulnerability to natural disasters (e.g. earthquakes, tsunami and flooding)
• Rapid land conversion, especially in lower-elevations
Management Issues
• Illegal mining, logging and forest fires via lack of enforcement of environmental legislation
• Lack of waste water treatment plants and waste management systems
• Inconsistent permitting procedures (e.g. obtained at the provincial level) and issuance of
production permits in a nationally-designated conservation area
30 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
5.2 Initial Policy Recommendations
• Improving financing (fiscal) policy for environmentally friendly infrastructure development,
public services facilities and social protection for the poor/weak communities.
• Introduce systematic programme of compensations e.g. in form of investments to public
infrastructure and services for communities affected by envisaged MP3EI investments
• Implement institutional measures to improve coordination between the central Government
and provincial governments regarding land use and conservation areas (permitting
procedures related to mining, palm oil and forestry sectors).
• Strengthening the legal framework and law enforcement to restore the function of
conservation and protected areas
• Ensuring that new proposed development areas (production) are not harming the important
ecosystem, biodiversity and local culture/heritages.
• Low use of innovative technologies and methods in industry (low emission/low waste
technologies etc.
• Application of best available techniques in the various industrial sectors
• Construction and development in areas located along the seismic fault lines should be
accompanied with complete and prepared hazard management and contingency plan, and
proper communication of these plans to the public and decision-makers.
APPENDICES
SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
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APPENDIX A – MP3EI Planning Informat ion in
Sumatra Economic Corr idor
SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
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MP3EI Planning Information in Sumatra Economic Corridor
A-1
A MP3EI Planning Information in Sumatra Economic Corridor
A.1 List of Economic Development Projects
No Project Name Investment Value (IDR
Billion) Developers
Starting Period
End Period
KPI
Main Economic Activities – Palm Oil
1 Industrial Area Development Project Sei Mangkei (KISMK)
51 SOE 2008 2010 KPI Sei Mangkei,
North Sumatra
2 Industrial Development of Palm Kernel Oil with capacity 400 ton/day
70 SOE 2009 2011 KPI Sei Mangkei,
North Sumatra
3 Development to increase Palm Kernel Shell from 30 ton/ hour to 75 ton/hour
109 SOE 2008 2010 KPI Sei Mangkei,
North Sumatra
4 NPK (Nitrogen, Phosphorus and Potassium) Factory (100.000 ton)
537 Private 2012 2015 KPI Sei Mangkei,
North Sumatra
5 Oleochemical Plant Development 2045 Private 2011 2014 KPI Sei Mangkei,
North Sumatra
6 Oleochemical Plant Development dan Pure Palm Oil (PPO)
3627 SOE 2013 2018 KPI Sei Mangkei,
North Sumatra
7 Fame Fractionation Plant 1 234 Private 2011 2013 KPI Dumai, Riau
8 Biodiesel Plant 4 154 Private 2011 2013 KPI Dumai, Riau
9 Oleochemical Phase 2 378 Private 2011 2012 KPI Dumai, Riau
10 Palm Oil Storage Tanks 36 Private 2011 2012 KPI Dumai, Riau
11 Palm Kernel Plant Upgrade 27 Private 2011 2013 KPI Dumai, Riau
12 Refinery Plan 1 & 2 Upgrade 21 Private 2011 2013 KPI Dumai, Riau
13 Spenth Earth Extraction Plant 29 Private 2011 2013 KPI Dumai, Riau
14 HSD Oil Storage Tanks 41 Private 2011 2012 KPI Dumai, Riau
15 Rock Glinding Plant 31 Private 2011 2012 KPI Dumai, Riau
16
The Basic Organic Chemical Industry that is sourced from Agricultural (Glycerine, Palm Fatty Acid Destilate, RBD Palm Oil, RBD Palm Olein, RBD Palm Stearin, Biodiesel) -> Basic Organic Chemical Industry that is sourced from Agricultural Products
666 Private 2010 KPI Dumai, Riau
A-2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
No Project Name Investment Value (IDR
Billion) Developers
Starting Period
End Period
KPI
17
Palm oil manufacturers, edible oil, vegetable and animal fats, and other organic basic chemicals derived from agricultural products and wholesale trade -> Palm Oil Manufacturers sourced from agricultural products and wholesale trade
2597 Private 2010 2013 KPI Dumai, Riau
18 Oil Palm plantations and vegetable crude oil industries (edible oil) at Kab. Musi Banyuasin
137 Private
KPI Tanjung Api-Api - Tanjung Carat, South
Sumatra
19 Oil Palm plantations and vegetable crude oil industries (edible oil) at Kab. Musi Banyuasin
137 Private
KPI Tanjung Api-Api - Tanjung Carat, South
Sumatra
20 Technopolitan development area at Pelalawan
46336 Mix 2012 2014 KPI Pelalawan,
Riau
Main Economic Activities - Oil and Gas
1 Open Access development level 1 RU II Dumai
380 SOE KPI Dumai, Riau
2 Fluidized Chatalitic Cracking Unit at Refinery Unit III Plaju to optimize refinery
1280 SOE
3
Revitalization and relocation of the oil pipeline Tempino-Plaju to improve the reliability of transportation of crude oil (267 km) Validation Pertamina: 265 km
-850 SOE
4 Construction of NGL Plant in South Sumatra, Prabumulih
1790 SOE KPI Prabumulih, South Sumatra
5 Construction of Pressurized LPG terminal 5,000 MT in Lampung Kap. 2 MTPA
200 SOE
KPI Bandar Lampung - East
Lampung, Lampung
6 Construction of FSRU in Lampung (Labuhan Maringgai)
929 SOE 2012 2014
KPI Bandar Lampung - East
Lampung, Lampung
Main Economic Activities - Coal
1 Coal liquefaction of 1 million tons of liquid product/year
12600 Private 2011 2015
KPI Tanjung Api-Api - Tanjung Carat, South
Sumatra
MP3EI Planning Information in Sumatra Economic Corridor
A-3
No Project Name Investment Value (IDR
Billion) Developers
Starting Period
End Period
KPI
2 Cluster development project of NPK compound fertilizer (capacity of 1 million ton / yr)
2700 SOE 2012 2017
KPI Tanjung Api-Api - Tanjung Carat, South
Sumatra
3 Coal mine (40 million tons per year) 6250 Private 2006 2039 KPI Muaraenim - Pendopo, South
Sumatra
4 Pendopo Coal Up Grading Capacity 5 million tons per year
9000 Private 2011 2019 KPI Muaraenim - Pendopo, South
Sumatra
5 Pendopo Coal Gasification, Coal to SNG
25000 Private 2012 2017 KPI Muaraenim - Pendopo, South
Sumatra
6 Pendopo Coal Gasification, Coal to Propylene
22000 Private 2011 2016 KPI Muaraenim - Pendopo, South
Sumatra
7
Coal Production Enhancement Project in Tanjung Enim in stages from 12 million tons/year to > 80 Million tons/year
5634 Private 2012 2019 KPI Muaraenim - Pendopo, South
Sumatra
8 Proyek Pendopo Integrated Industrial Park (PIIP) sebagai Special Economic Zones
4250 Private 2011 2017 KPI Muaraenim - Pendopo, South
Sumatra
9
Revitalization of fertilizer plant (construction of Pusri 2B plant) with the capacity of 2000 MTPD of ammonia and 2750 MTPD of urea -> Revitalization of fertilizer plant with capacity of 2000 MTPD of ammonia and 2750 MTPD of urea
6247 SOE 2008 2015 KPI Palembang, South Sumatra
Main Economic Activities - Steel
1 Steel Industry Development Project 50600 SOE -Private
2011 2013 KPI Steel Cilegon,
Banten
2 Revitalization Direct Reduction Plant 736 SOE 2008 2012 KPI Steel Cilegon,
Banten
3 Construction of Blast Furnace Factory 5413 SOE 2010 2014 KPI Steel Cilegon,
Banten
4 Industry for prefabricated steel materials for heavy construction buildings
619 Private KPI Steel Cilegon,
Banten
5 Basic Iron and Steel Industry 1170 Private 2009 2011 KPI Steel Cilegon,
Banten
Main Economic Activities - Tourism
A-4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
No Project Name Investment Value (IDR
Billion) Developers
Starting Period
End Period
KPI
1
Tambling Wildlife Nature Conservation (Forest Conservation, Wildlife, and Marine Nature Reserve; Ecotourism)
2000 Private KPI Tanggamus,
Lampung
2 Tourism development at Tanjung Lesung
73877 Private KPI Tanjung
Lesung, Banten
Main Economic Activities - Timber
1 Industrial forest concessions and other wood panel industry
86 Private 2010 2016 KPI Muaraenim - Pendopo, South
Sumatra
Main Economic Activities - Shipping
1 Industrial rubber crumb (crumb rubber) in West Sumatra
252 Private 2008 2010 KPI Padang, West
Sumatra
Main Economic Activities - Gold
1 Mining and Processing of Gold, Silver and others in South Tapanuli (Martabe Project)
7000 Private 2007 2021 KPI South
Tapanuli, North Sumatra
Main Economic Activities - Rubber
1 Industrial rubber crumb (crumb rubber) in West Sumatra
252 Private 2008 2010 KPI Padang, West
Sumatra
Main Economic Activities - Other sectors
1 Construction of concentrate plant and mining infrastructure of zinc and lead in Kabupaten Dairi
4500 Private 2013 2019 KPI Dairi, North
Sumatra
2 Construction of BWD (Bucket Wheel Degree) Capacity 2200 ton/unit/year
450 SOE 2011 2014 KPI Bangka Barat, Bangka Belitung
3 Development of Industrial Estate West Bangka - Industrial Anchors: Chemical Tin
450 SOE 2011 2016 KPI Bangka Barat, Bangka Belitung
4 Technological improvements in the tin smelting process in Ummet Mentok
428 SOE 2011 2014 KPI Bangka Barat, Bangka Belitung
5 Renovation of Tin Ore Processing Center in Timah Mentok
18 SOE 2012 KPI Bangka Barat, Bangka Belitung
6 Modification of Ship Dredger Kundur 1 to Bucket Wheel Dredger Kundur 1
225 SOE 2011 2014 KPI Batam,
Kepulauan Riau
*) SOE = State-Owned Enterprise (BUMN)
MP3EI Planning Information in Sumatra Economic Corridor
A-5
A.2 List of Main Planned Infrastructure Projects
No Main Planned Infrastructures Developers Description
1 Kuala Namu Airport PT. Angkasa Pura II and Ministry of Transportation
International Hub Airport Operated in 2013
2 Kuala Tanjung Bridge PT. Pelindo I and Ministry of
Transportation International Hub Port
3 Steam Powerplant in Asahan PT. PLN Capacity 2 x 87 MW
4 Steam Powerplant in Dumai PT. PLN Capacity 2 x 150 MW
5 Steam Powerplant in South Sumatra 5 PT. DSSP Power South
Sumatra Capacity 2 x 150 MW
6 Steam Powerplant in South Sumatra 6 PT. DH Energy Capacity 2 x 300 MW
7 Steam Powerplant in South Sumatra 8 PT. Bukit Asam Capacity 2 x 600 MW
8 High Grade Highway BPJT – Ministry of Public
Works Length 1.670 km
9 Palapa Ring Ministry of Communication and
Information Construction and
Rehabilitation
10 Tanjung Enim – Lampung Railway PT. BATR Length 330 km
11 Selat Sunda Bridge Mix Plan for 2014
A-6 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
A.3 Planned Policy/Regulation and Infrastructure in Sumatra EC
No Economic
Activities Planned Regulation Planned Infrastructure/Connectivity
1 Palm Oil
Increase spatial certainty for the development of upstream activities for palm oil (plantations and mills/palm oil processing plants);
Improvement of regulations, incentives, and disincentives for the development of downstream palm oil industries.
Improve the quality of roads from the plantations to palm oil mills, the industrial estates and ports. CPO productivity level is very dependent on the travel time from the plantations to the mills, the quality of FFB (Fresh Fruit Brunch) will decline within 48 hours after picking;
Increase the capacity and quality of railway at several locations to transport crude palm oil from the mills to the ports;
Increase the capacity and quality of port services to transport CPO production. At present, the traffic density in the ports is such that it causes excessive waiting times of 3-4 days.
2 Rubber
Reviewing the Government policy concerning the types of materials and products that should not be exported to support local industries (arranged through the Minister of Trade Decree No. 1 Year 2007);
Improving efficiency of processing and marketing value chain by effectively implementing the Law No. 18 Year 2008 of the Plantation and its implementation rules (Regulation of the Minister of Agriculture No. 38 Year 2008 of Guidelines for Materials Processing and Marketing Sports Rubber, and Regulation of the Minister of Trade No. 53 Year 2009 concerning the Control of Export Commodity Quality Sports Materials Standard Indonesian Rubber Traded);
Increasing the productivity in the upstream (small holder plantations) by replanting gradually on a larger scale, together with subsidy assistance from bank credit, providing a high quality seeds along with the incentives that support the replanting program, providing a sufficient post-harvest’s extension of cultivation and technology (such as: wiretapping, usage of
Improve the quality of roads from the plantations to palm oil mills, the industrial estates and ports. CPO productivity level is very dependent on the travel time from the plantations to the mills, the quality of FFB (Fresh Fruit Brunch) will decline within 48 hours after picking;
Increase the capacity and quality of railway at several locations to transport crude palm oil from the mills to the ports;
MP3EI Planning Information in Sumatra Economic Corridor
A-7
No Economic
Activities Planned Regulation Planned Infrastructure/Connectivity
tapping bowl, tapping knife, rain shield, clotting materials and clotting containers), and also a support from the National Land Agency (BPN) to collect the land ownership data and provision of land certificate data;
Providing an easier way for investors to invest in the downstream rubber industry with the provision of information along the process and procedures, which are clear and measurable investments.
3 Coal
Setting the coal usage as the primary fuel for electricity power in Sumatra. It is estimated that 52 percent of fuel for power plants in Sumatra will use coal by 2020. This will increase interest for investors for coal mining operations;
Review the tax policies for for converting process from coal to electricity though the c steam power plant (or in general, coal processing industry in minemouth)
Issuance of regulations concerning the operational policies in utilizing low rank coal for the national electricity supply. Apply the direct appointment method for coal companies capable of supplying coal for minemouth Power Plant for a minimum of 30 years, with interest to use for power generation;
Acceleration of the determination of Reference Price of Coal in order to determine the benchmark prices of coal on a regular basis based on location and amount of calories;
Standardization of methods of measuring and reporting the amount of production at the mine and the allocation of export and Domestic Market Obligation (DMO) to obtain coal Mining Permit (IUP) from the Ministry of Energy and Mineral Resources and local government;
Strengthen the regulatory and land policy to solve the issue of land compensation especially for mining concession and forest area.
Control of illegal mining without permit (PETI-Illegal Mining).
Coal mining activities in Central South Sumatra requires rail infrastructure that can be used to transport coal. Given the low CV of coal, transport by road is not economically efficient. By using the railway, transport costs will decrease up to a profitable level for the low CV coal;
Construction of a railway that can carry coal from the inland to the port;
Increasing capacity of the port in Lampung and South Sumatra to improve the delivery of coal out of Sumatra.
A-8 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
No Economic
Activities Planned Regulation Planned Infrastructure/Connectivity
4 Shipping
Increase the number and ability of the national shipbuilding industry in the construction of ships up to a capacity of 50,000 DWT (Dead Weight Tonnage);
Establish a national shipbuilding facility with production facilities in the form of building berth, graving dock with capability of building or repairing vessels up to 300,000 DWT;
Enforce the development and repairment for ships under 50,000 DWT;
Prioritize shipbuilding to support oil and gas activities, except for the vessel type C;
Remove Value Added Tax (VAT) from upstream to downstream in the shipping industry in order to cut
production costs by 10 percent;
Determine the level of interest rates and reasonable collateral for loans from commercial banks and
granting soft loans from ODA (Official Development Assistance)/JBIC (Japan Bank for International Cooperation) with two step loan schemes through Public Ship Financing Program (PSFP);
Review the Minister of Finance Regulation No. 261/PMK.011/2010 with regard the implementation of Import Duty Covered by Government (BMDTP) policy for shipping industries only for shipping component that is not produced in Indonesia OR
Review the implementation of Import Duty Covered by Government (BMDTP) policy only for shipping component that is not produced in Indonesia or not fulfill the Minister of Finance Regulation No. 261/PMK.011/2010 based on QCD (Quality, Cost, dan Delivery).
Provision of basic infrastructure supporting the shipping industry in Lampung region, such as electrical energy, road network and water treatment;
Provision of supporting infrastructure for industry products shipping, such as ports.
5 Steel
Improve the national’s iron ore concentrate production through policies that provide the requirements by building a manufacturing process of iron ore concentrate near the mining areas;
Increase production capacity of the steel industry through the
Provision of supporting infrastructure (electricity, road network, railways, ports);
Improve basic infrastructure including inter locus related activities (roads, railways, waste managements).
MP3EI Planning Information in Sumatra Economic Corridor
A-9
No Economic
Activities Planned Regulation Planned Infrastructure/Connectivity
provision of raw materials, particularly iron ore through the Domestic Market Obligation (DMO), issued by the central government;
Improve the competitiveness of national steel products through development of new industries that have not been developed in Indonesia, increase production capacity, and build national upstream and downstream business partnerships;
Develop a business climate that is conducive for the steel industry through increased partnerships, fiscal incentives and disincentives, application of level of domestic content regulations (TKDN) on steel products, and improve facilities support production and marketing of national steel industries;
The Policy for cluster development of downstream steel industry prioritizes industrial estates for efficiency of operation and maintenance of supporting infrastructure or integration of steel smelting and stainless steel production (slab, Hot Roll Coil (HRC) and Cold Roll Coil (CRC)).
A-10 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
A.4 List of KPI and Its Allocation for Economic Activities
No Investment
Focus Area
Economic
Activities Investors
Supporting
infrastructure
Total Investment
(IDR B)
1 KPI Sei Mangkei Palm Oil SOE, Combined
Port, Railway, Road,
Energy, Natural
Resources
4,930
2 KPI Tapanuli
Selatan Other sector Private Energy 7,000
3 KPI Dairi Other sector Private Port 4,500
4 KPI Dumai Palm Oil, Oil & gas SOE, Private Port, Road, Energy,
Natural Resources 4,620
5 KPI Tanjung Api-
api-Tanjung Carat Coal, Palm Oil SOE, Private
Port, Road, Energy,
Natural Resources 15.574
6 KPI Muara Enim-
Pendopo Coal, Palm Oil SOE, Private
Railway, Road,
Energy 72,134
7 KPI Palembang Coal, Oil & gas SOE
Airport, Port, Road,
Energy, Natural
Resources
8,089
8 KPI Bangka Barat Other sector SOE Port and road 1,346
9 KPI Batam Other sector SOE Port 225
10 KPI Lampung
Timur-Tanggamus Shipping, Palm Oil Private
Port, Road, Energy,
Natural Resources 4,929
11 KPI Cilegon (Iron-
steel) Iron-Steel
SOE, Private,
Combined Port and road 58,538
12 KPI Tanjung
Lesung Tourism Private Airport and road 73,877
13 KPI Padang Rubber Private Port, Train, Energy 252
14 KPI Prabumulih Oil & Gas SOE Natural Resources 1,900
15 KPI Bandar
Lampung Oil & Gas SOE
Airport, Road,
Energy, Natural
Resources
818
16 KPI Pelalawan Palm Oil Combined 46,336
17 KSN Selat Sunda KSN Selat Sunda Combined Road 150,000
18 National Combination
Airport, Port, Train,
Road, Energy,
Natural Resources
0
MP3EI Planning Information in Sumatra Economic Corridor
A-11
No Investment
Focus Area
Economic
Activities Investors
Supporting
infrastructure
Total Investment
(IDR B)
19 Others Private Private
Airport, Port, Train,
Energy, Natural
Resources
2,086
Source : Coordinating Ministry for Economic Affairs, 2014
A.5 Updated Number of KPI in Sumatra
No Priority Zone Investment Focus Investment Value (billion IDR)
Real Sector Infrastructure Total
1 Sei Mangkei 6.4 17.921,45 24.4
2 Tapanuli Selatan 7.0 5.3 12.3
3 Dairi 4.5 250.0 4.8
4 Dumai 4.6 52.057,03 56.7
5 Tj. Api-Api – Tj. Carat 15.6 9.1 24.7
6 Muara Enim - Pendopo 72.2 91.400,9 163.6
7 Palembang 8.4 16.056,06 24.4
8 Bangka Barat 1.3 3.668,13 5.0
9 Batam 225.0 42.6 42.8
10 Tanggamus 6.0 2.4 8.4
11 Besi Baja Cilegon 58.5 2.1 60.6
12 Tanjung Lesung 73.9 11.815,5 85.7
13 KSN Selat Sunda - 150.3 150.3
TOTAL 258.7 405.0 663.7
No Potential Zone Investment Focus Investment Value (billion IDR)
Real Sector Infrastructure Total
14 Padang 252 13.382,14 13.634
15 Prabumulih 1.79 - 1.79
16 Bandar Lampung – Lampung Timur 1.129 6.145,74 7.275
17 Pelalawan 46.336 - 46.336
18 Anambas* - - 0
19 Danau Toba** - - 0
TOTAL 49.507 19.527,88 69.034,88
Source: Sumatra EC Working Team, 2014
A-12 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
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APPENDIX B – Supporting Information on Pre-scoping
Activities
SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / NOA / 2014-03
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MP3EI Planning Information in Sumatra Economic Corridor
B-1
B Supporting Information on Pre-scoping Activities
B.1 List of Relevant Stakeholders for Sumatra EC
No Institution Groups Issues/Sectoral Relevance
1 Bappeda, Aceh Government Regional planning
2 BLHD, Aceh Government Envrionmental management
3 Bappeda, North Sumatra Government Regional planning
4 BLHD, North Sumatra Government Envrionmental management
5 Bappeda, West Sumatra Government Regional planning
6 BLHD, West Sumatra Government Envrionmental management
7 Bappeda, Riau Government Regional planning
8 BLHD, Riau Government Envrionmental management
9 Bappeda, Jambi Government Regional planning
10 BLHD, Jambi Government Envrionmental management
11 Bappeda, South Sumatra Government Regional planning
12 BLHD, South Sumatra Government Environmental management
13 Bappeda, Bengkulu Government Regional planning
14 BLHD, Bengkulu Government Envrionmental management
15 Bappeda, Lampung Government Regional planning
16 BLHD, Lampung Government Envrionmental management
17 Bappeda, Bangka Belitung Government Regional planning
18 BLHD, Bangka Belitung Government Envrionmental management
19 Bappeda, Kepulauan Riau Government Regional planning
20 BLHD, Kepulauan Riau Government Envrionmental management
21 PIC EC Sumatra Government Envrionmental management
22 Universitas Andalas – Center for
Environmental Studies (PSL) University Network Environmental issues
23 Universitas Sam Ratulangi – Center for
Environmental Studies (PSL) University Network Environmental issues
24 Universitas Riau – Center for Environmental Studies (PSL)
University Network Environmental issues
25 Universitas Lampung – Center for
Environmental Studies (PSL) University Network Environmental issues
26 Universitas Universitas Sriwijaya – Center
for Environmental Studies (PSL) University Network Environmental issues
27 Universitas Sumatra Utara – Center for Environmental and Population Studies
(PSL) University Network
Environmental & Indigenous people issues
28 Universitas Syiah Kuala – Land Resources
Conservation University Network Environmental issues
29 PPLH Regional Sumatra Government Environmental management
30 Planning and Rural Development, Planning
Division KP3EI Government Regional planning
31 National Spatial Planning Department, Government Regional planning
B-2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
No Institution Groups Issues/Sectoral Relevance
Ministry of Public Works
32 Spatial Planning and Environment
Department, Ministry of Home Affairs. Government Regional planning
33 Environment Department, Bappenas Government Environmental management
34 Transportation Department, Bappenas Government Regional planning
35 Water Resources and Irrigation
Department, Bappenas Government Regional planning
36 Natural Resources and Environment
Regional Policies, Ministry of Environment Government Environmental management
37 WARSI NGO Environmental issues
38 WALHI NGO Environmental issues
39 AMAN NGO Indigenous people issues
40 JATAM NGO Mining issues
41 KIARA NGO Fisheries and Marine Issues
42 CIFOR Research Institution Forestry issues
MP3EI Planning Information in Sumatra Economic Corridor
B-3
B.2 Minutes of Consulative Meeting
MP3EI SEA Minutes of Meeting
Meeting: Consultation for Baseline Mission with Ministry of Forestry (MoForest)/2013
Attendees: 1. MP3EI SEA Team (Budi Wiryawan, Asep Sukmara, Dwi Nurcahyadi) 2. MoForest, PIC for Sumatra EC (Pak Waspodo, Pak Joko Suwarno, Ibu Dwita
Hidayati)
Absent : n/a
Date: 12/09/2013 Time: 10.00-11.30 Venue: Gedung VII Lantai 2, Biro Perencanaan Meeting Room Kementerian Kehutanan, Jakarta
Issues Action/Remarks
1. Introduction and overview of the baseline workshop plan by team Introduction of the EC team members for Sumatra EC Overview of the baseline workshop plan and required
provincial dataset the team wish to collect from the workshop/missions
Request on contacts with local/provincial stakeholders for further communication and coordination
Clarification on the planning mechanism of the M3EI EC Plans in Kalimantan and their linkages to provincial planning
Request for information of the updated projects (on going and to be implemented) in Sumatra EC a
Request for baseline study/previous study regarding the forestry and water issues in Sumatra (if any)
Baseline workshop would be held on 2nd of October in Medan by inviting local govt institution, university networks and local NGOs. Pak Waspodo suggest to invite BPKH in MP3EI influenced, KSDA, TNC, Sriwijaya University, Unila, UNRI, USU, Syah Kuala University, and Andalas University, and WARSI (local NGO)
The MoForest is confirmed with the schedule and will attend the Workshop but Pak Waspodo ask what would be the role of the PIC in the WS?Do they need to present or opening or just attending the meeting? The invitation should be submitted to Sekjen Ministry of Forestry as head of secretariat of working group of Sumatra EC.
MoForest will give the contacts list of provincial governments and other relevant stakeholders
MoForest confirmed that the latest MP3EI document will be ready on this September
MoForest gave the recent updated list
of projects to the team and confirmed that there are 19 KPI in Sumatra EC included KPI which have been proposed by local government
MoA confirmed that baseline data on
forestry will be found in Bappeda
MP3EI SEA team should bring a formal letter indicating that they are assigned by Bappenas to carry the activities
MP3EI should invite Sumatra EC contact person from Ministry of Industry
B-4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
Issues Action/Remarks
2. MoForestry presented the latest MP3EI in Sumatra Corridor, and raised some issues: Social conflict in Tapanuli Selatan related to tailing from
Gold mining Overlap concession between coal mining and production
forestry (HTI) Infrastructure, mining and agriculture development in
forest area
To be considered in the baseline analysis and potential issues identification.
MP3EI Planning Information in Sumatra Economic Corridor
B-5
B.3 Minutes of Prescoping & Baseline Workshop
MP3EI SEA Minutes of Meeting
Meeting: Prescoping MP3EI SEA – Sumatra EC/2013
Attendees: As attached
Absent : -
Date: 2 October 2013 Time: 09.00-16.00 WIB Venue: Grand Hotel Elite Medan
Issues Action/Remarks
1. Opening of the workshop by KP3EI Connectivity WG Framework for activities Greening MP3EI and SEA process Expected output of the activities
All to note (presentation)
3. Introduction from DHI-Integra Introduction of SEA Team Overview of workshop agenda Expected output of the workshop
All to note
4. Introduction of the participants Attached 5. Screening for SEA video Moved to coffee break session 6. Workshop 1st Session
a. Introduction on SEA Overview of potentials and threats to environmental conditions from the
proposed development. Overview of the importance and principles of SEA SEA development in Indonesia Objective of baseline data workshop
b. MP3EI SEA Project Implementation & Deliverables Project Background, Team, Output and Scheduling MP3EI SEA Approaches and Workplan (both for Policy and Economic
Corridors) Economic Analysis Input
- Coffee Break (Screening for SEA video)
c. Expected output of MP3EI SEA Prescoping
Importance of Baseline Data MP3EI SEA Database/Information System Management Hands on Baseline Data Collection
- Overview of Potential National Strategic Issues - Assignment for group work activities - Overview of plenary discussion
d. More on SEA Usual SEA steps SEA and Planning, SEA and EIA Next stage: Scoping!
All to note
7. Questions/concerns/feedbacks: 6.a Bonie Dewantara – Conservation Indonesia Suggestion to link all SEA documents in spesific level avoid conflicts between
stakeholders. 6.b Dedy Harlan – Bappeda North Sumatra
B-6 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
Analysis process for SEA is the most hard work to do for North Sumatra Province
6.c Slamet Budi Yuwono – Lampung University SEA should be done before the activities start 6.d Joko Suwarno – Ministry of Forestry More explanation about KLHS MP3EI isrequired. MP3EI programs, including
the terminated and alternative projects should be revised for next meeting. The positive impacts for local communities should be the main purpose for the programs.
6.e M Yudi Agusrin - WWF Riau Sometimes, SEA has some conflicts with local government concept. 6.f Anisa Wisati – Badan Geology – Ministry of Energy and Mineral Lack of coordination, especially in data sharing, is a problem for KLHS team. 6.g Zainuddin – KKI Warsi Jambi SEA is expected to not revise any provincial SEA that was already done.
Revising existing SEA documents might create another conflicts. 6.h Zuchri Abdi – PPE Sumatra The members of Bappenas team who attend this workshop are relatively
young and inexperience, the result of the SEA might be questionable. The existing policies should be the reference for MP3EI SEA preparation.
6.i Haruki Agustina – KLH Suggestion to conduct a special meeting only to discuss the perception of SEA
to avoid conflicts between stakeholders. The required national dataset can be provided by Ministry of Enviroment if available.
6.j. Ardinis Arbain – Andalas University The possibilities of revising MP3EI project and RTRW based on SEA
reccomendation.
-
KP3EI – Bappenas : MP3EI document based on green economy is already one. Nizhar Marizi – Bappenas There is no guarantee that SEA can be applied effectively. SEA will be the reference for evaluation and revision that required for every project creating substantial negative impacts.
8. Group Assignments Division into groups and debriefing on group assignments
- Identification of issues relevant to Sumatra (based on list of nation-wide issues) regarding the available data and its spatial distribution
- Groups divided into 2. Each group consisted of participant from central government, provincial government, NGO and universities.
Exercise on potential key issues identification and baseline data collection
9. Plenary discussion Discussion were guided by Mr. Dwi Nurcahyadi and Mr. Budi Wiryawan. The discussion led by the matrix and maps provided to figure the related locus. The participants actively delivered comments, inputs, correction and information regarding the related data needed to support those issues. Some of the participants illustrated geographical scope of their relevant issues on the maps given. The point of the discussion was mostly the data needed are available in the ministries that was not invited to this workshop. Then, Bappenas and KLHS team need to collect that data and information. The participants from Sumatra Utara, Sumatra Barat, Kepulauan Riau and ministry of energy and minerals resources have shared their data to the team.
MP3EI Planning Information in Sumatra Economic Corridor
B-7
Most of data were non spatial data. At the end of discussion, each group presented their group discussion result and commented by others. More participants should be invited on the next workshop to gather wider issues. The attendances commited to actively support the SEA activities in the future. Since the workshop held in Medan, Capital of Sumatra Utara, the participants from Sumatra Utara asked the team to visit Bappeda office to collect more data/publication related to the economic development in Sumatra Utara.
The following points from the discussion: - Apply SEAs to integrating MP3EI - Invite more stakeholder relevant to the issues - Compose new letter from Bappenas to get spatial data from provincial
government - Involve Jatam and Walhi into the process - Arrange upcoming workshop not in the end of the fiscal year (the
provincial governments are hectic with workload) - Provide larger meeting room - Provide sufficient administration staff for workshop
Recommended Follow-up
- The upcoming workshop should consider the fiscal year - One person for administration person should be stand by to confirm
the attendances and handle the administration/ reimbursement process.
- SEA team need to visit Jatam and Walhi to gathered their point of view regarding MP3EI
- SEA team should strengthen the coordination with Bappenas and EC PIC regarding the data collection.
B-8 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
B.4 List of Attendance
Event : SEA Prescoping & Baseline Workshop for Sumatra EC
Date : 02 October 2013 09.00-16.00 WIB
Place : Grand Hotel Elite Medan
No Name Institution
1 Dwi Nurcahyadi DHI-Integra
2 Ardinis Arbain Universitas Andalas
3 Dikarama Kaula Bappedalda Sumatra Barat
4 Zainuddin KKI Warsi Jambi
5 Budy Wiryawa DHI-Integra
6 Dimitra Viantari MP3EI Bappenas
7 Elly Damayanty MP3EI Bappenas
8 Imelda S.Y. Sinaga MP3EI Bappenas
9 Mahmud WWF Indonesia
10 Zuchri Abdi PPE Sumatra KLH
11 Denny PPE Sumatra
12 Anton S. Hadiputro KESDM
13 M. Fazwa R. Daulan Bappeda Sumatra Utara
14 Mhd Irsyad S. Bappeda Sumatra Utara
15 Dwi Suranto USU Medan
16 Slamet Budi Yuwono Unila Lampung
17 Dedy Wahyudi Hamidy Bappeda Kepri
18 Ade Kumiadi Bappeda Kepri
19 Mubarak Universitas Riau
20 M. Yudi Agusrin WWF
21 Joko Suwarno Kemenhut
22 Annisa W. KESDM
23 Bonie Dewantara Conservation Indonesia
24 Nizhar Marizi Bappenas
25 Haruki Agustina KLH
26 Almar R. Bappeda Sumatra Utara
27 Dedi Harlan Bappeda Sumatra Utara
28 Irine Pratiwi C. Hutagaol KP3EI
29 Selly Galvani KP3EI
30 Hadi Nugroho KESDM
31 Aryaning Dyah W. Dinas Kelautan dan Perikanan
32 Kadir Dinas Kelautan dan Perikanan
MP3EI Planning Information in Sumatra Economic Corridor
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B-10 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
MP3EI Planning Information in Sumatra Economic Corridor
B-11
APPENDIX C – LIST OF REFERENCES
SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03
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List of References
C-1
C List of References
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