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Environmental and Social Monitoring Report This report has been submitted to ADB by BP Berau Limited and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB. Project Number: 38919 April – September 2013 INDONESIA: Tangguh Liquefied Natural Gas Project Integrated Social Programme Tangguh LNG – Operations Phase Prepared by BP Berau Limited Tangguh LNG Project Operator

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Environmental and Social Monitoring Report

This report has been submitted to ADB by BP Berau Limited and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Project Number: 38919 April – September 2013

INDONESIA: Tangguh Liquefied Natural Gas Project Integrated Social Programme Tangguh LNG – Operations Phase

Prepared by BP Berau Limited Tangguh LNG Project Operator

Operator’s 6 Monthly Social Report

Integrated Social Programme

Tangguh LNG – Operations Phase

April 2013 – September 2013

Contents

1. OBJECTIVE AND SCOPE ......................................................................................... 4

2. REPORT METHODOLOGY ....................................................................................... 4

3. TANGGUH SOCIAL PERFORMANCE – EXECUTIVE SUMMARY ........................... 5

4. TANGGUH LNG UPDATE ....................................................................................... 7

5. INTEGRATED SOCIAL PROGRAM .......................................................................... 7

5.1.�The�Social�Management�Plan ............................................................................................ 7

5.1.1.�Livelihood ........................................................................................................................... 7

5.1.2.�Education ........................................................................................................................... 9

5.1.3.�Health ................................................................................................................................. 9

5.1.4.�Governance ..................................................................................................................... 11

5.1.5.�Community�Relations ..................................................................................................... 13

5.2.�Social�Monitoring�Plan ....................................................................................................... 14

5.2.1.�Livelihood ......................................................................................................................... 14

5.2.2.�Education ......................................................................................................................... 16

5.2.3.�Community�Health ......................................................................................................... 18

5.2.4.�Governance ..................................................................................................................... 19

6. EXTERNAL PANEL ANNUAL REVIEW AND NON-COMPLIANCE STATUS UPDATE ...................................................................................................................... 23

7. EVALUATION RESULT .......................................................................................... 24

��

List of Tables and Figures

List of Tables

Table�1�Number�of�Operation�Workforce�at�Tangguh�LNG�Site�.....................................�16�

Table�2.�AMDAL�Workforce�Commitment�vs.�Actual�during�Operation�Phase ................. 28

Table�3�MCU�program�in�Teluk�Bintuni�Hospital�in�2013....................................................... 31

Table�4 �Scholarship�program�delivered�for�local�students�in�2008�–�2013 ........................ 34

List of Figures

Figure�1.�Documentation�of�the�agriculture�program�in�Tanah�Merah�Baru�Village.�The�

program�supplies�fresh�fruits�and�vegetables�to�Tangguh�Catering ..................... 14

Figure�2.�Documentation�of�renovation�project�and�opening�ceremonial�of�3�new�classes�

building�in�Onar ............................................................................................................. 17

Figure�3�.�Malaria�training�for�health�providers�and�malaria�survey�in�one�DAVs. ............. 18

Figure�4 Documentations�of�Community�Action�Projects�in�the�DAVs�Villages ................ 20

Figure�5�Documentation�of�community�cemetery�visit�in�Tangguh�LNG�area�during�2013�

Easter�day ...................................................................................................................... 21

Figure�6�Socialisation�for�local�communities�and�military ...................................................... 21

Figure�7�Documentation�of�Cultural�Program�during�Independence�Day�and�Opening�

Ceremonial�of�Onar�School ......................................................................................... 22

Figure�8�Documentation�of�Agriculture�Program�in�DAVs:�Commercial�and�Subsistence�

project ............................................................................................................................. 25

Figure�9. Vegetable,�Fruit�and�Fish�delivery�from�Stocking�Points�to�Tangguh�LNG�

Catering ......................................................................................................................... 26

Figure�10�Documentation�of�Bicycle�Workshop�in�Babo ....................................................... 26

Figure�11�The�average�of�annual�invome�per�household�in�DAVs�(in�rupiahs) ................... 27

Figure�12��Papuan�Workforce�Composition�Trend�in�Tangguh�Operation�2010-2013�......�29�

Figure�13�� Student�Graduation�in�National�Exams�and�Participant�Ratio�in�Bintuni�Bay�

Regency ...................................................................................................................... 29

Figure�14�Malaria�Prevalence�in�DAVs�and�Selected�Villages............................................... 30

Figure�15�Case�Fatality�Rate�due�to�Diarrhea�in�DAVs .......................................................... 31

Figure�16 Community�perception�on�Welfare�(Welfare�Index)�in�DAVs .............................. 33

Figure�17�The�trend�of�DAVs�and�Papuan�Workforce�in�Tangguh�operation ..................... 33

Figure�18�Capacity�progress�of�Indigenous�Firms�in�the�latest�condition. .......................... 35

Figure�19�Number�of�contract�won�by�local�firms�during�2006�until�September�2013 .... 35

Figure�20�the�handover�ceremony�of�folklore�story�books�from�the�TLO�team�to�Local�

government�and�art�performance�of�Babo�community�during�Independence�

Day�commemoration�2013.�These�are�as�recognition�and�effort�of�Tangguh�

commitment�to�kept�the�local�values ....................................................................... 36

1. OBJECTIVE AND SCOPE

The�progress�of�social�program�implementation�captured�in�this�report�is�provided�for�

the� Asian� Development� bank� (ADB)� and� the� Japanese� Bank� for� International�

Cooperation�(JBIC)�Lenders�Group�as�per�requirement�under�Section�1.12�of�the�ADB�

Tranche�PSC�Parties�Agreement�(or�Section�1.18�of�the�JBIC�Tranche).��The�scope�of�

the�report� includes�monitoring�of� the�Integrated�Social�Program�(ISP)� Implementation�

for�the�period�of�April�–�September�2013�and�program�evaluation.��

2. REPORT METHODOLOGY

This� report�has�been�prepared�with� reference� to� the� ISP�monthly� reports,� site�visits,�

discussions� with� various� program� coordinators,� and� reports� from� ISP� implementing�

partners,� including� the� British� Council,� Yayasan� Sosial� Agustinus� (YSA),� Mediatama�

Cipta� Citra� (MCC),� Bina�Swadaya,� Andalan�Unggul,� LP3BH�Manokwari,�University� of�

Cendrawasih,� and� the� Gadjah� Mada� University� (UGM).� Several� documents� on� the�

evaluation�aspects�were�also�assessed�to�understand�the�program�achievements�and�

challenges.����

��

April – September 2013 P a g e | 5

3. TANGGUH SOCIAL PERFORMANCE – EXECUTIVE SUMMARY

As� part� of� the� company’s� commitment� to� mitigate� Tangguh� LNG’s,� social� and�

environmental� impacts� and� to� remain� in� compliance� with� AMDAL� and� PSC� parties’�

agreement,�BP�continues�to�conduct�the�community�investment�program�with�greater�

engagement� with� the� local� administration.� The� second� phase� of� Tangguh’s� social�

program�called� the�Community� Investment�Program�covers� the�period�of�2011-2015.��

In�this�second�period,�the�strategy�focuses�more�towards�“Working�with�Community”�

from�“Working�for�Community”�to�aim�for�the�sustainability�of�development.��

The�Community�Investment�Program�is�carried�out�to�support�the�local�development�of�

the� Teluk� Bintuni� regency.� � There� are� five� priority� programs� namely� Livelihood,�

Education,�Health,�Governance�and�Community�Relations.�In�this�reporting�period,�the�

program�has�delivered�several�outputs�and�outcomes� targeted�at�beneficiaries� in� the�

directly�affected�villages�(DAVs),�particularly�the�indigenous�community.���

The�livelihood�program�has�created�opportunities�and�access�for�the�locals�to�increase�

their� household� income.� During� this� reporting� period,� the� program� is� focused� in�

assessing�and�expanding�the�local�market�and�other�potential�economic�developments�

in� order� to� reduce� dependency� towards� Tangguh� LNG.� � Some� micro-enterprise�

program� initiatives� in� the� community� have� successfully� provided� an� alternative�

household�income.��

��

Significant�contribution�to�the�community�health�program,�including�maintaining�a�low�

level�of�malaria�prevalence�and�diarrhea�case�fatality�rates�helps�reduce�the�number�of�

people� from� Teluk� Bintuni� succumbing� to� these� diseases.� The� Tangguh� community�

health� program� continues� to� develop,� provide� new� initiatives,� and� create� adequate�

referral�health�system�in�the�community.�However,�there�are�some�challenges�in�the�

implementation�of�good�health�practices�for�the�community�due�to�social�and�culture�

barriers.���

The�education�program�continued�to�improve�the�learning�processes�and�the�capacity�

of�key�stakeholder� in�education� including�schools�and�teachers�therefore�contributing�

to� the� increase� in� the� overall� quality� of� education� in� Teluk� Bintuni.� Some� significant�

contributions�include�the�increase�of�student�final�graduation�passing�rates�at�all�levels�

as� well� as� the� quality� of� human� development� index� across� Teluk� Bintuni.� � This�

continuous�support�will�help�Teluk�Bintuni� regency� in�developing�good�quality�human�

resources�to�champion�the� local�development�and�to�fulfill�Tangguh�project�activity� in�

the�future.��

��

The� governance� program� continued� to� create� and� improve� the� capacity� of� local�

government� in� implementing�good�governance� that� is� strong,� clean� and� transparent.��

Those� efforts� are� pursued� through� systematic� approach� in� the� form� of� training� and�

technical�assistance�for�the�government�officials,�in�both�the�executive�and�legislative�

bodies.�

April – September 2013 P a g e | 6

The�program�also�continues�to�optimize�the�role�of�NGOs�and�tribal�institutions�in�local�

development� processes.� Civil� Society�Organization� (CSO)� strengthening� programs� in�

collaboration� with� LP3BH� Manokwari� has� provided� opportunity� for� local� NGOs� to�

improve�their�organization,�capacity,�and�to�build�relationships�among�them.���

The� overall� Tangguh� social� programs� have� shown� significant� contribution� to� local�

development� and�welfare.� The�participation� and� contribution�of� community� and� local�

administration� on� the� implementation� program� have� increased� and� this� needs� to� be�

maintained.�However,�Tangguh�needs�to�continuously�promote� independence�for�the�

locals�and�communicate�to�the�local�government�to�ensure�the�long�term�sustainability�

of�the�social�programs.����

In�response�to�the�non-compliance�related�to�the�grievance�process,�which�was�raised�

by� the� Lenders� External� Panel� team� after� their� visit� in� early� 2013,� a� comprehensive�

action�has�been�conducted.��The�grievance�management�and�its�procedure�have�been�

clarified�including�the�role�and�responsibility�of�each�function�and�the�process�to�ensure�

that�the�response�was�delivered�within�the�time�limit�defined�in�AMDAL.��

April – September 2013 P a g e | 7

4. TANGGUH LNG UPDATE

Tangguh�is� in�steady�operation�at�design�capacity�and�is�now�focusing�on�continuous�

improvement� in� the� safety� and�efficiency�of� all� aspects�of� the�business;�maintaining�

production�reliability;�and�strengthening�the�succession�plan�and�nationalization�of�key�

leadership�roles�through�robust�people�development�program�and�activities.��

As�many�as�57�LNG�cargoes�and�12�condensate�cargoes�were�delivered�during�May�to�

October� 2013.�� By� end� of�May� 2013,� 390� LNG�cargoes� and� 91� condensate� cargoes�

have�been�delivered�since�its�start�up�in�2009�

In� its� current� operations,� Tangguh� has� six� Sales� and�Purchase�Agreements� (SPA)� to�

supply�LNG�to�Posco�and�SK�E&S�Co,�Ltd�in�Korea;�Sempra�LNG�International�LLC�in�

Mexico;�CNOOC�Fujian� LNG�Co.� Ltd� in�China;� and� Tohoku�Electric� Power�Company�

Inc.�and�Chubu�Electric�Power�Co.,�Inc.�in�Japan.�An�Initial�Phase�Ex-Ship�LNG�Sale�and�

Purchase� Agreement� between� Tangguh� and� Kansai� Electric� Power� Company� Inc.,�

Japan� is� in� place� in�2013,�while� a� long� term�SPA�with�Kansai� is� under�development�

during�the�reporting�period.�BP�continues�to�find�opportunities�to�maximize�the�value�of�

Tangguh�LNG�cargoes.�The�mid-term�contracts� for�export� sales�are� to�Kogas,�Tepco�

and��Kyushu�Electric,�whereas�the��mid-term�contract�for�domestic�sales�is�to�PT.�PIM.�

�Additionally,� an� Initial� Phase� Ex-Ship� LNG� Sale� and� Purchase� Agreement� between�

Tangguh�and�Kansai�Electric�Power�Company�Inc.,�Japan,� is� in�place� in�2013,�while�a�

long�term�SPA�with�Kansai�is�being�developed.��To�further�support�domestic�demand,�

in�May�2012�Tangguh�has�signed�a�MoU�with�state�electricity�company�PLN�to�provide�

LNG,� and� in� Dec� 2013� Tangguh� signed� an� supply� and� off� take� agreement�with� the�

same�company�to�provide�electricity�to�Teluk�Bintuni�Regency.�

5. INTEGRATED SOCIAL PROGRAM

5.1. The Social Management Plan

The� Tangguh� social� program� continues� as� planned� during� the� reporting� period� of�

October�2012�–�April� 2013.�The�second� Integrated�Social�Program� (ISP-2)� strategy� is�

being� implemented�with� focus�on� the� five� sectors� i.e.� Livelihood,�Education,�Health,�

Governance�and�External�Relation�&�Communication.�The�highlights�of� the�programs�

are�summarized�as�follows:��

5.1.1. Livelihood

Livelihood�covers�many�activities�that�local�people�undertake�to�meet�their�daily�needs�

and� to�provide� income.�The�main�objective�of� the�program� is� to� improve� capacity� of�

households�in�local�communities�to�create�diversified�and�sustainable�income�sources,�

and�the�empowerment�of�indigenous�Papuan.�The�Livelihood�program�is�also�intended�

to� reduce� community� dependency� on� jobs� from� Tangguh.� � There� are� three� main�

activities� including� introduction� of� new� employment� such� as� agriculture� and� micro�

April – September 2013 P a g e | 8

business,�opening�of�new�market�opportunities�through�stocking�points,�and�numerous�

trainings�and�mentoring�offers�to�support�the�development�of�local�businesses�

Fisheries and Agriculture Strengthening

At� the� beginning,� the� fisheries� and� agriculture� program� provided� the� communities�

opportunities� to� increase� their� capacity� in� meeting� basic� needs� on� fishery� and�

agriculture�products�for�daily�household�consumption.�Throughout�its�development,�the�

program�has�grown�into�commercial�activities�through�supply�for�LNG�catering�and�the�

local�market.� � Several� activities�were� conducted� including� the� development� of� local�

products�and� improvement�of�their�quality,�the�promotion�of�village�based�agriculture�

and/or�fisheries�products�supported�by�adequate�production�equipment�and�materials,�

and� a� comprehensive� training� on� agriculture� and� fishery� product� processing.� These�

programs� are� organized� by� community� facilitators� who� work� directly� with� the�

community�in�the�villages.�� Micro-enterprises and Micro-finance

The�continuing�programs�provided�the�communities�with�wider�economic�opportunities�

to� increase� the� incomes� of� both� individuals� and� households� through� support� for�

capacity� building� and� access� to� financial� support� and� new� markets.� The� activities�

became�more� focused�on�agricultural� and� fishery�programs� including�support� for� the�

development� of� new� micro� economical� business� models� e.g.� product� processing�

supported�through�local�financial�cooperation.�To�ensure�these�programs�are�delivered�

as� planned,� Tangguh� LNG� has� established� a� contract� with� Bina� Swadaya� to� help�

farmers;�fishermen;�local�businesses�develop�capacity;�assets;�and,�markets.�

Bird’s Head Business Empowerment Program

In�the�Papua�“Bird’s�Head”�area�(,�business�empowerment�program�continued�the�two�

objectives� of� mentoring� local� business� people� in� Sorong,� Manokwari,� Fakfak� and�

Bintuni,�as�well�as�supporting�Regional�Chamber�of�Commerce�(KADINDA)�and�Forum�

of� Oil� and� Gas� Partners� (FPMPM)� Papua� Barat� on� organization� management.� The�

scope� of� technical� assistance� delivered� under� BHBEP� includes� business� plan� and�

management,� financial� report� development,� managing� the� contract� and� business�

licenses�including�safety�and�business�reports.���

Workforce Management

During� the� operational� phase,� the� Tangguh� workforce� management� continued� to�

maintain�manpower�commitments�to�their�targeted�Papuans.�The�recruitment�process�

still� follows� the� previous� procedures� established� during� the� construction� phase.�

Employee� recruitment� from� the�DAVs� through� the�Tangguh�Workforce�Management�

(WFM)� is� based� on� contractor� requests.� The�WFM� sends� a� letter� to� the� heads� of�

villages�to�obtain�recommendations�regarding�the�names�of�community�members�who�

are� selected� for� further� health� screening� and� administration� processing.� Applicants�

from� outside� the� DAV� recruitment� process� apply� through� respective� contractors�

companies;� they� are� then� acknowledged� administratively� by� Manpower� Agency� of�

Teluk�Bintuni,�Sorong,�Fakfak�or�Manokwari.��

April – September 2013 P a g e | 9

5.1.2. Education

Basic Education & Vocational Program

This�program�aims�to�improve�the�basic�quality�of�education�by�assisting�the�local�Teluk�

Bintuni� administration� to� manage� the� education� sector� as� well� as� increase� the�

participation�and�teaching-learning�process�of�the�students�and�educational�providers.�

A� partnership� was� established� between� Tangguh� LNG� and� the� British� Council� to�

provide� technical� assistance� for� the�Education�Agency� of� the� Teluk�Bintuni�Regency�

since�2006.�Activities�continued�in�2013.���

A� partnership� was� also� developed� with� UNIPA� to� improve� students’� University�

preparation�through�a�matriculation�program�for�new�students.��

School Model Development.

A� partnership� was� also� formed� with� the� Sampoerna� Foundation� to� accelerate�

improvements� to� the� quality� of� the� schools� in� Tanah� Merah� to� meet� the� national�

standards.�The�schools�in�Tanah�Merah�are�expected�to�be�a�model�for�other�schools�in�

Teluk�Bintuni�which� implement�high�standard�curriculum�and�complete� infrastructure�

for�learning.�

5.1.3. Health

The�Health�program�objective� is�to�support� local�government�and�local�community�to�

improve� health� quality� and� accessibility� of� health� services.� � Since� 2011,�Mediatama�

Ciptacitra�(MCC)�was�awarded�a�3-year�contract�to�provide�community�health�programs�

and� technical� assistance� for� the� local� government� of� Bintuni� to� improve� its� health�

services,�especially�in�the�DAV�areas.��The�programs�focus�on�7�areas�such�as�mother�

and�child�health�program,�sanitation�and�clean�water�program,�malaria�control,�diarrhea,�

tuberculosis�(TB),��HIV/�AIDS�preventions,�capacity�building�and�technical�assistance�for�

health�providers.� Mother and Child Health (MCH) Program

MCH�programs�provide�support�to�the�local�clinic�health�center�(PUSKESMAS)�in�DAVs�

to�cover� the� following�activities:� (i)�Nutrition�posts,�which�encourage� families� to�deal�

with�their�children’s�nutritional�problems.�These�integrated�health�posts�(Posyandu)�are�

used�to�identify�malnourished�children�and�catch-up�immunization�program�for�children�

under� five.� (ii)� The�Pregnancy�Post� involves� village�midwives�who� perform� antenatal�

examinations,� and� provide� both� blood/iron� supplement� tablets� and� education� to�

pregnant�mothers.�Midwives� are� also� kept� on� call� to� help�with�maternal� emergency�

cases.�

Sanitation and Clean Water Program

One�of�the�strategies�to�promote�and�sustain�the�effectiveness�of�sanitation�and�clean�

water� programs� has� been� the� establishment� of� the�Community-Led� Total� Sanitation�

April – September 2013 P a g e | 10

(CLTS)�program,�which�is,�as�the�title�suggests,�spearheaded�by�the�community.�This�

concept�aims�to�facilitate�the�community�understanding�of�the�sanitary�problems�and�

how�to�fix�them�by�using�these�principles:�no�subsidies,�no� lecturing,�the�community�

as� the�program� leader,�and� total�participation�of� the�community.�This�program�starts�

with�analyzing�and�planning,�which�then�leads�to�executing�and�evaluating�activities,�as�

well�as�maintenaning�its�results.�.��

The� CLTS� method� also� emphasizes� the� importance� of� improving� awareness� of�

behavioral�changes�to�promote�sanitation,�especially�in�terms�of�developing�the�habits�

of�using�clean�restrooms.�

Malaria Control

This� program� supports� the�Bintuni� administration� and� village� communities� to� control�

malaria.� A� survey�was� conducted� to� determine� the�malaria� prevalence� rates� in� each�

DAV�during�the�rainy�and�dry�seasons;�this�survey�involved�the�Village�Malaria�Workers�

(JMK).� The� malaria� control� approach� was� also� conducted� by� JMK� through� social�

marketing;�the�campaigns�in�many�areas�were�also�supported�by�posters�that�were�put�

up�in�various�places�in�the�villages�as�well�as�information�disseminated�through�a�film�

on�malaria�and�the�role�of�JMK.�In�the�malaria�program,�the�field�facilitator�also�support�

and�provide�stock�of�malaria�drugs� in�community�health�services� in�order� to� increase�

community� access� to� malaria� treatment.� This� program� aims� to� reduce� the� risk� of�

community�using� illegal�or� inappropriate�drugs� that�can�cause�virus� resistance� to�the�

drugs�and�impede�the�treatment�process.���

���

Diarrhea Prevention

This� program� supports� the� Bintuni� administration� to� control� diarrhea,� which� has�

become� a� seasonal� epidemic� in� the� DAVs.� The� awareness� campaign� has� continued�

through� information� sessions� and� promotions� involving� Posyandu� (Integrated� Health�

Post)� cadres,� News� from� the� Bay� (Kadate)� bulletins,� posters� and� radio� broadcasts.�

Prevention�efforts�have�also� included�providing�Oralit�at� the�houses�of� the�Posyandu�

cadres�and�village�drugstores�(KOT3).��

HIV/ AIDS Prevention

To� anticipate� the� spreading� of� STDs,� including� HIV/AIDS,� throughout� the� area� and�

among� the� Tangguh� LNG’s� workers,� Tangguh� Community� Health� has� developed�

programs� to� improve� the� awareness� of� the� risks� of� such� diseases� through�

communication,� information�and�training,�as�well�as�the�promotion�and�distribution�of�

condoms�to�workers�within� the�LNG�site,�Babo�Base�Camp�and� the�DAVs.�Tangguh�

Community� Health� has� also� partnered� up� with� the� Regional� HIV/AIDS� Prevention�

Committee� (KPAD)� in� Fakfak,� Manokwari� and� Bintuni� regencies.� HIV� and� AIDS�

awareness�was�also�conducted�to�the�high�risk�population�at�DAVs�area.�The�program�

aims� to� ensure� their� participation� in� implementing� safe� behavior� and� to� reduce� their�

risk�of�becoming�infected�by�HIV�or�STD.���

April – September 2013 P a g e | 11

Capacity Building and Technical Assistance for Health Providers

Capacity� building� and� technical� assistance� was� delivered� to� health� providers� at� the�

district� level� and� community� level� who� work� on� the� front� lines� in� providing� quality�

health�services.�The�program�is�in�collaboration�with�the�Bintuni�Health�Agency�and�has�

the� objective� of� ensuring� the� sustainability� of� health� programs� in� the� future.� � At� the�

district�level,�the�technical�assistance�includes�the�planning�and�budgeting,�monitoring�

and�surveillance�program,�as�well�as�data�management.�At� the�community� level,� the�

capacity�building�focuses�on�increasing�the�skills�of�community�health�service�provider�

and� on� cadres� in� order� to� implement� the� program� in� its� function� of� helping� case�

detection�and�patient�referral.��

��

5.1.4. Governance

The� governance� program� covers� three� sub-program� areas� such� as� Government�

capacity� building,� Community� Action� Plans� (CAPs),� Integrated� Community� based�

Security�(ICBS)�and�Civil�Society�Strengthening.��

Government

The�program�aims�to�strengthen�the�capacity�of�local�government�officials�in�the�Teluk�

Bintuni� regency,� districts� and� at� village� level.� The� scope� of� the� program� includes�

providing�technical�assistance�for�government�officials�to�understand�and�increase�their�

knowledge� in� the�development�process�particularly� in� the�DAVs�areass.�The�capacity�

building�is�delivered�for�local�stakeholders�and�agencies,�both�executive�and�legislative�

institutions.� The� activities� conducted� consist� of� training� and� mentoring� related� to�

strategic� planning,� budgeting,� monitoring� and� evaluation,� accountability� and�

transparency,� and� also� policy� development.� � The� regency� and� district� (village)� level�

governance�program�was�carried�out�in�collaboration�with�the�Center�of�Population�and�

Policy� Studies� University� of� Gadjah� Mada� (PSKK-UGM).� Meanhile� the� governance�

program�in�the�Bird’s�Head�area�is�implemented�in�collaboration�with�Media�Cipta�Citra�

(MCC)� as� a� partner� and� focusing� on� awareness� of� revenue� management� for�

government�officials�and�stakeholders.��

Community Action Plan (CAP) and Infrastructure development

This� section� describes� the� community� development� activities� conducted� as� per� our�

commitment�in�Weriagar,�Mogotira,�Tomu,�Ekam,�Taroi,�Tofoi,�Tanah�Merah,�Saengga,�

Onar,�Otoweri�and�Tomage,�which�are�the�Directly�Affected�Villages�(DAVs),�and�also�

Irarutu�III�and�Sebyar�Rejosari�as�Non-DAVs.��

Community�Participatory�Planning�(PBM)�

Community�participatory�planning� (PBM�or�Perencanaan�Bersama�Masyarakat)� is� the�

process� to� ensure� that� community� aspirations� have� been� adopted.� CAP� documents�

produced� from� the�PBM�process�will� ensure� that� the�communities� can� choose� their�

own�development�priorities.�Principally,�“PBM�and�evaluation”�is�conducted�annually�in�

the� DAVs.� Recently,� the� PBM� process� integrated� with� the� development� planning�

meeting� (Musrenbang)�at�village� level.� In� this�process,� the�planning�not�only� focused�

April – September 2013 P a g e | 12

on�providing�CAPs�program,�but�also�integrates�with�all�activities�that�are�proposed�by�

the� village� and� considers� the� availability� of� all� resources� including� government,�

company�and�community.��

Clean�Water�Program�for�the�Community�

This�program�aims�at�providing�people� in� the�DAVs�with�access� to�clean�water.�The�

availability� of� clean� water� is� a� necessity� that� directly� affects� the� improvement� of�

community�health�quality.��

Infrastructure�Development�

This�program�aims�to�support�the�improvement�of�the�social�and�public�facilities�in�the�

DAVs,� which� indirectly� affect� the� quality� of� health,� education� and� local� economic�

growth.� The� implementations� of� infrastructure� projects� need� the� participation� of�

community�members�in�terms�of�manpower�and�materials.�

Capacity�Building�

This� program� aims� to� improve� the� communities’� livelihood� skills.� The� training� and�

mentoring� include�cooking,� fisheries,�agriculture,�post�harvesting,�management�skills,�

etc.�

Social�Program�

As� a� complementary� activity,� the� social� program� supported� and� enhanced� the�

community� participation� in� specific� social� activities� such� as� religious,� education� and�

youth�programs.���

Integrated Community based Security (ICBS)

The�ICBS�program�aims�to�implement�an�integrated�community-based�security�system�

that� delivers� effective,� transparent� security� outcomes� for� the� Tangguh�Project.� � The�

program� implemented� by� the� Security� unit� fostered� collaboration� with� Gardatama�

services� unit� and� local� security� stakeholders.� Several� activities� were� conducted�

including� development� of� local� content� and� security� enterprises;� community� policing�

program,� promotion� of� understanding� of� law� and� order,� conflict� resolution� plans� and�

monitoring,� discussion� and/or� response� to� security� issues� as� they� arise� as� well� as�

training�in�human�rights�awareness.�

Civil Society Strengthening

The�civil�society�program’s�objective�is�to�increase�and�improve�the�participation�of�civil�

society� in� overseeing� the� socio� economic� development� and� Tangguh� operation� by�

facilitating�civil�society�forums�and�trainings.�The�program�also�provided�support�for�the�

establishment� of� an� NGO� forum� to� accommodate� the� communication� process,�

including� updates� on� Tangguh� LNG� and� information� sharing.� Recently,� an� MOU�

renewal�with�LP3BH,�a� local�NGOs�based� in�Manokwari�for�humanitarian�and�human�

right� issues,�was� established.� The� collaboration�with� LP3BH� focuses� on� civil� society�

strengthening,�supporting�implementation�of�ICBS�in�the�villages�as�well�as�awareness�

building� programs� on� transparency� and� accountability� for� local� government� and�

communities.�LP3BH�also�actively�promotes�anti�domestic�violence�to�the�community.��

April – September 2013 P a g e | 13

5.1.5. Community Relations

Tangguh� LNG� recognizes� that� the� success� of� the� operation� depends� on� the�

relationships�with� various� stakeholders,� including� the� communities,� government� and�

non-government�organizations.��

The�Community�Relations� (Comrel)�Team�manages� the�communities’�aspirations�and�

interests� in� the�DAVs.� �Grievance� procedures� are� implemented� in� the�DAVs� to� give�

communities�a�chance�to�channel�their�complaints�or�comments�relating�to�the�project�

and�the�social�programs.�The�team�also�conducts�regular�visits�to�villages�to� listen�to�

community� issues� as� well� as� to� provide� update� on� Tangguh� activities.� Community�

relations�program�provides�some�media�communication�such�as� the�Kabar�dari�Teluk�

(KADATE)� tabloid,� that� are�used� for� information�sharing� among� the� communities.�As�

part�of�the�company’s�commitment�to�provide�continued�support� in�maintaining� local�

values� and� cultures,� the� community� relations� team� facilitates� cemetery� visits� to� the�

Tangguh�area� for� the� resettled�communities� from�TMB,�Onar�and�Saengga.�Tangguh�

social�team�also�actively�supports�cultural�awareness�programs�to�Tangguh�employees�

on�site�and�other�events.��

April – September 2013 P a g e | 14

5.2. Social Monitoring Plan

During� this� reporting�period�of�April� -�September�2013,� the�Tangguh�social�programs�

implemented�several�activities� in�many�areas.�Some�outputs�of�social�programs�have�

been�delivered�as�mentioned�bellow:���

5.2.1. Livelihood

The�agriculture�and� fisheries�program�are�still� focused�on� improving� the�capability�of�

the� community� to�undertake�production� to�meet�household�needs,� local� commercial�

activities�and�supply� to�Tangguh�catering.�Several�outputs�were�achieved�during� this�

reporting�period�including:�

• Distribution� of� more� than� 1,000� fruit� trees� including� mango,� rambutan,�

klengkeng,�sukun�and�duku,�to�communities�in�Irarutu�III�Babo,�Taroy�and�Onar.����

• Conducted� farmer-workshop� (Temu� Tani)� in� Tanah�Merah� Baru,� involving� 56�

farmers�from�11�villages� in� the�DAV�area.�This� is�an�effort� to� increase� farmer�

capacity�as�well�their�knowledge�through�sharing�of�best�practices.��

• Facilitated�the�farmer�group�meeting�in�Manimeri�District,�150�people�attended.�

This�was� an� important�meeting� initiated� by� the� local� government� in� order� to�

increase�community�awareness�on�the�agriculture�program.�

• Facilitate� local� market� developments� to� Manokwari� and� Sorong� for� fishery�

products�from�the�DAVs.���

Figure�1.�Documentation�of�the�agriculture�program�in�Tanah�Merah�Baru�Village.�The�

program�supplies�fresh�fruits�and�vegetables�to�Tangguh�Catering �

Micro-Enterprises and Micro-Finance

Micro� enterprise� activities� continued� to� create� opportunity� for� communities� in� the�

DAVs� to� access� a� variety� of� livelihood� and� small� business� opportunities� to� increase�

household� income.� Several� training� and�mentoring� sessions�were� conducted� during�

this�reporting�period:�

April – September 2013 P a g e | 15

• Continued�assistance�on� technical� and�management� aspect� to� the�machinery�

workshop� project� in� Taroy� and� Saengga� including� providing� spare� parts� and�

equipment�for�the�workshop�and�recruitment�of�one�technical�mentor.�Recently�

the�workshops�have�opened�and�are�receiving�orders�from�the�community.����

• Provided�two�freezers�to�support�the�stocking�point�program�in�Arguni.�

• Continued�mentoring�session�on�technical�and�management�to�seven�stocking�

points�in�the�DAVs�to�maintain�product�supplies�to�Tangguh�catering.�

• Conducted�training�on�household�economic�management�in�Otoweri,�Tomage,�

Weriagar,� Mogotira,� Tomu,� Ekam,� Taroi� and� Babo;� As� many� as� 154� people�

participated.�

• Facilitated� health� certification� from� Health� Regency�Office� for� home� industry�

products�from�the�DAVs�such�as�salted�fish�and�sago�crackers.�

• Conducted� savings� campaign� for� the� community� in� Otoweri,� Tomage,�

Weriagar,�Ekam,�and�Tomu;�106�people�participated.��

• Conducted� savings� campaign� for� teachers� in� the� DAV� schools� including� in�

Tomu,�Otoweri�and�Tomage;�11�teachers�participated.�

• Provided� a� grant� � to� support� the� operations� of� a� stocking� point� in�Weriagar,�

totaling�IDR�10�million.�

• Facilitated� market� network� for� home� industries� products� from� the� DAVs�

through�participation�to�the�exhibition�programs�in�Jakarta,�Sorong,�and�Bogor�

in�collaboration�with�SMESCO�institute.��

• Facilitated� the� opening� of� Babo� outlet� by� the� Head� of� the� Teluk� Bintuni�

Cooperative�and�Trade�Office.��

• Facilitated� contract� amendment� between� cooperatives� in� the� DAVs� and�

Indocater�to�maintain�supply�activity�of�fisheries�and�agriculture�products.��

• Supported� cooperative�workshop� in�Bintuni� Township;� as�many� as�84�people�

participated�including�cooperative�institutions�in�the�DAV�area.���

• Continued�mentoring� session� in�order� to� keep� the�quality� and�product� supply�

from� the� seven� existing� stocking� points� in� the� DAVs.The� supply� of� products�

from�the�DAVs�including�shrimp,�fish,�fruit�and�vegetables�to�Tangguh�catering�

was�on�average�26�tons�per�month.�

Bird’s Head Business Empowerment Program (BHBEP)

The�BHBEP�continued�the�mentoring�session�for�mentees�in�the�Bird’s�Head�area�and�

capacity�building�of� the�Regional�Chamber�of�Commerce� (Kadinda)� and�Forum�of�Oil�

and�Gas�Partners�Papua�Barat�(“Forum”).�During�this�reporting�period�several�activities�

were�delivered,�as�follows:�

• Continued� one-on-one� business� consultancy� sessions� to� Kadinda,� Forum� and�

other�business�associations�in�Papua�Barat.�

• Continued� consultancy� for� nine� business� local� firms� in� management� and�

invoicing.�

• Continued�mentoring�session�on�business�proposal�development�and�tax�report�

to�19�local�firms�across�the�Bird’s�Head�region.�

• During� this� reporting� period,� 10� local� firms�were� awarded�contracts� from� the�

local�government�and�private�businesses�for�various�projects.�

��

April – September 2013 P a g e | 16

Workforce Management�

The�number�of�workers�continued�to�increase;�as�of�August�2013�a�total�2.645�people�

work� in�LNG�Tangguh�Operation.�As�many�as�1413�people�or�53.4%�of�workers�are�

Papuan.�The�workforce�distribution�is�summarized�below:��

Table�1�Number�of�Operation�Workforce�at�Tangguh�LNG�Site�

Skilled Level DAV Bird's Head Rest of Papua National Expatriate Total

Unskilled� 48 0 0 0 0 48

Low�Skilled� 332 151 4 0 0 487

Semi-Skilled� 178 254 34 46 0 512

Skilled� 27 224 89 884 14 1238

Managerial/Supervisor� 6 48 18 283 5 360

Total 591 677 145 1213 19 2645

Percentage� 22% 26% 5% 46% 1% 100%

����� Source: Tangguh WFM Team, September 2013

The�trend�of�workforce�composition�at�Tangguh�operation�in�this�period�is�similar�tothe�previous�

period.�From�2.645�employees,�23%�of�workers�came�from�the�DAVs,with�most�of�them�in�the�

low� skilled� level.� However,� compared� to� the� last� reporting� period� the� number� of� Papuan�

employees�in�the�managerial/supervisor�level�has�increased�from�68�to�72.���

��

5.2.2. Education �

The�education�program�continued�on�capacity�building�of� the�Teluk�Bintuni�Education�

Office�and�improvement�on�quality�of�school�and�learning�process�in�the�DAVs�as�well�

as�increasing�community�participation�in�basic�education�programs.��Furthermore,�in�an�

effort� to� improve� the� quality� of� the� school� and� learning� process� in� Tanah�Merah,� a�

special� program� was� created� including� school� model� development,� provision� of�

infrastructure� and� part-time� teachers.� The� program� is� facilitated� by� Sampoerna�

Foundation�in�collaboration�with�the�Teluk�Bintuni�Administration.���

During�this�period�report,�the�education�program�delivered�some�outputs�as�follows:�

• Mentoring� for� teacher� working� group� in� Bintuni� on� learning� evaluation;� 84�

teachers�participated��

• Monitoring� the� implementation� of� 2013� national� examinations� for� senior� and�

junior�high�school� level�across� in�Teluk�Bintuni,� in�collaboration�with�the�Teluk�

Bintuni� Education� Office,� UNIPA� and� STIH� Manokwari.� As� many� as� 395�

students� in� senior� high;� 739� students� in� junior� high� and� 1080� students� in�

elementary� levels� across� Teluk� Bintuni� participated� in� the� 2013� national�

examination.�

• Some� 27� students� from� Bintuni,� of� which� six� came� from� the� DAVs,� were�

selected�and�participated�in�the�National�Science�Olympiad�in�Bandung�in�June�

2013.� They� represented� the� Papua� provinces� in� the� event.� This� is� a� good�

April – September 2013 P a g e | 17

achievement� and� recognizes� the� continued� improvement� of� education� in�

Bintuni.��

• Conducted�training�of�trainers�on�learning�evaluation�in�Teluk�Bintuni;�as�many�

as� 20� people� including� school� supervisors,� education� regency� staff� and� local�

facilitator�participated.�

• Conducted�basic�pedagogy�training�to�increase�teachers’�capability�on�learning�

process�development�involving�35�people,�including�head�principals�and�school�

supervisors�from�across�Bintuni�Bay.�

• Collaboration�with�the�Education�Regency�Office�on�a�workshop�on�education�

program�policy�review� in�Bintuni.�As�many�as�203�people�were� involved�from�

local�universities,�local�parliament�members,�and�education�foundations.��

• Continued� support� for� the� Education� Regency� Office� including� � data�

management�and�technical�issues�in�education�program�development.�

• Continued� mentoring� session� to� strengthen� the� capacity� of� three� education�

foundations� in� Bintuni� including� YPKK,� Muhammadiyah� and� YPK� on� school�

development� program,� data�management,� finance� administration� and� � report,�

implementation�of�school�self-evaluation�and�media�development.��

• Conducted�awareness�on�education�program�in�Tomage�and�Babo,�as�many�as�

93� people� participated� including� teachers,� district� and� village� officials� and�

community�members.��(38�from�Tomage;�55�from�Babo).�

• Completed� the� renovation� of� 3� new� classes� building� of� the� YPK� elementary�

school�in�Onar.�The�opening�ceremony�occurred�in�13�September�2013.����

Figure�2.�Documentation�of�renovation�project�and�opening�ceremonial�of�3�new�

classes�building�in�Onar��

• Conducted� training� on� learning� and� evaluation� skills� for� science� teachers� in�

elementary� and� high� schools� across� Teluk� Bintuni,� 76� people� participated.��

Comprehensive�mentoring�was�delivered�after�the�training.�

• Provided�scholarships�to�14�students�to�attend�SMK�MIGAS�program�in�Cepu�

East�Java;�13�students�to�attend�UNIPA�in�Manokwari�and�3�students�to�attend�

SMAN�3�in�Jayapura.�All�students�were�mobilized�and�joined�the�program..���

• Facilitated� demobilization� process� of� four� students� who� completed� the�

scholarship�program�from�SMK�Migas�in�Cepu�to�Manokwari.�

• Facilitated� 17� students�who� completed� the� SMK�MIGAS� program� to� join� the�

matriculation�at�UNIPA.�

April – September 2013 P a g e | 18

• Capacity�strengthening�for�school�committees�and�school�teachers�in�Otoweri,�

Onar,� Babo� and� Aranday� to� increase� community� participation� to� education�

program� in� the� villages.� As�many� as� 67� teachers� and� school� head� principals�

participated.�

• Provided�incentives�for�10�selected�part-time�teachers�in�the�DAVs.�

• Selected� and� recruited� one� additional� part-time� teacher� on� Bahasa� Indonesia�

subject�in�Aranday.��

5.2.3. Community Health ��

Community�health�program�aims�to�increase�community�access�to�health�services�as�

well�as�to�strengthen�health�services� in�the�DAV�area.� �This�program�is� implemented�

by� MediaCiptaCitra� (MCC)� and� Yayasan� Santo� Agustinus� in� collaboration� with� the�

Bintuni�Health�Office.�During�this�reporting�period,�the�program�delivered�the�following�

outputs:��

• Collaborated�with�community�health�services�conducting�malaria�surveillance�in�

the�DAVs� and� non-DAV� areas.� During� this� reporting� period,�more� than� 2,700�

blood� smears� were� collected� where� as� many� as� 300� were� malaria-positive�

(12%).��

• Conducted� refresher� training� on� malaria� surveillance� for� health� providers� in�

Beimes,�Manimeri,�SP5,�Sidomakmur,�Atibo,�Yensei�and�Tanah�Merah.�

• Conducted�malaria� education� to� communities� in� TMB,� Saengga,� and�Beismis�

District;�171�people�participated.�

• Conducted�awareness�session�on�malaria�treatment�to�all�pharmacists�in�Teluk�

Bintuni�Township.���

Figure�3�. Malaria�training�for�health�providers�and�malaria�survey�in�one�DAVs.

�• Facilitated�training�on�using�microscopes�to�read�data�for�3�laboratory�staff�from�

Teluk�Bintuni�Regency�at�the�Health�Research�Institute�in�Jakarta.��

• Conducted�mass�malaria� diagnostics� for� the� community� in� TMB;� 360� people�

participated.�

• Conducted� awareness� session� on� malaria� treatment� procedure� to� all�

pharmacists�in�Teluk�Bintuni�Township.��

April – September 2013 P a g e | 19

• Conducted� refresher� training� on� malaria� prevention� to� health� providers� in�

Dataran�Beismis�District�including�the�appointment�of�one�village�malaria�cadre�

(JMK)�in�Suhi�Village.�

• Strengthened� the� malaria� prevention� program� in� Kaitaro� District� including�

implementing� a� baseline� survey,� appointing� JMK� and� providing� training� on�

malaria� program� for� health� providers.� As� many� as� 454� blood� smears� were�

collected�during�baseline�survey�activity.��

• Facilitated� the� implementation� of� nutritional� and� maternity� classes� during�

Posyandu� (community� health� clinic)� program� in� all� DAVs;� more� than� 700�

children�under�5�years�old�were�weighed�and�scaled�during�the�program.��

• Conducted�diarrhea�surveillance�in�all�DAVs;�168�diarrhea�cases�were�reported�

during� April� –� October� 2013.� Two� fatalities� due� to� severe� diarrhea� were�

recorded�in�Tofoi�and�Babo.��

• Conducted� regular� awareness� program� on� personal� hygiene,� diarrhea�

prevention,�clean�water�and�health�sanitation�to�communities�in�all�DAVs,�more�

than�430�people�on�average�participated�every�month.��

• HIV� campaigns� were� conducted� in� Bintuni,� Babo� and� Tofoi;� more� than� 400�

people� attended� including� high-risk� group� populations.� After� voluntary�

counseling,� as� many� 68� people� were� referred� for� HIV� testing� and� early�

treatment�at�VCT�&�CST�clinics�in�Bintuni.����

• Facilitated� STD� (sexual� transmitted� diseases)� surveillance� in� the� appointed�

clinics,�as�many�13�people�voluntarily�participated.��

• Collaborated�with�CHAI� institution� for�“on� the� job”� training� for� laboratory�and�

nursing�staff�on�STD�prevention�in�Teluk�Bintuni�and�Manimeri.���

• Conducted� TB� awareness� program� in� the� village�with� high� prevalence� of� TB�

cases� including� Babo,Tofoi� and� Tomu;� more� than� 300� people� were� involved�

every�month.�The�program�also�identified�12�people�with�positive�TB�and�they�

were�referred�to�a�health�service�for�early�diagnostic�and�treatment.�

5.2.4. Governance

There� are� several� activities� under� the� governance� program� including� the�Community�

Action� Plan� (CAP),,� Government� and� civil� society� empowering,� and� Integrated�

Community-Based�Security� (ICBS).�These�programs�have� laid�a�strong� foundation� for�

the� other� programs.� During� this� reporting� period� some� outputs� delivered� from� the�

governance�program�are�described�below:�

CAPs and Infrastructure Development

• Completed� community� participatory� planning� meeting� in� Taroy,� 28� people�

participated.�

• Completed�community�action�projects�including:��

- Provided�education�aid�to�273�students�in�Ekam,�Weriagar,�Mogotira,�TMB,�

Saengga,�Otoweri,�Onar,�Tomage,�and�Tomu;�

- Provided�400�fish�and�shrimp�nets�and�14�fishery�machines�to�fisherman�in�

Ekam,�Onar�Lama,�Tomage,�Tomu,�and��Weriagar.�

April – September 2013 P a g e | 20

- Provided� additional� meals� for� children� and� pregnant� women� during� Posyandu�

program�in�Weriagar�and�Tomu.�

- Completed� 4� religious� place� renovation� including� mosques� and� churches� in�

Ekam,�Saengga,�Tomage�and�Tomu.�

- Completed�renovation�of�two�houses�in�Ekam�and�Taroy.�

- Provided� incentives� for� 5� village� health� cadres� and� 3� part-time� teachers� in�

Otoweri�and�Weriagar�

- Completed�public�infrastructure�development�including�40�electricity�towers�and�

a�200-metre�village�walk�way�in�Otoweri�

- Provided�one�package�of�school�equipment�in�Otoweri��

Figure�4 Documentations�of�Community�Action�Projects�in�the�DAVs�Villages��

Community Relation Program

Community�relation�program�focuses�on�maintaining�communication�and�relation�with�

the� stakeholders� at� district� and� village� levels,� particularly� to� update� the� operation� of�

Tangguh�LNG.�Several�activities�conducted�during�this�reporting�period�include:��

• Conducted�awareness�on�grievance�mechanism�to�the�community�in�the�DAVs�

including� in� Sebyar� Rejosari,� Saengga,� Babo,� Irarutu� III,� Tofoi� ,� Tomoage� and�

Otoweri;�As�many�as�243�people�participated.��

• Continued� to� manage� community� grievances.� During� January-September,� as�

many� as� 24� community� concerns� were� raised� using� the� grievance� form.� All�

grievances�were�responded�in�a�timely�manner.����

• Updated�Tangguh�LNG�activities�to�district�and�village�officials.��

• Supported� social� activities� in� the� villages� surrounding� the� plant� including� the�

commemoration� of� National� Education� Day,� 2013� Ramadan,� and� Eid� Day�

celebrations.��

• Conducted�cultural�awareness�to�Tangguh�employees,�20�people�participated.�

• Supported�the�renovation�of�the�port�office�and�soccer�field�in�Babo.�

• Facilitated� a�meeting� between� community� in�Weriagar�with� BP�management�

and�SKK�Migas,�to�update�and�consult�on�the�Tangguh�Expansion�Project.�

• Supported�the�replanting�of�375�fruit�trees�in�Babo.��

• Facilitated� community� cemetery� visit� to� Tangguh� LNG� area� during� 2013�

Ramadan,� Eid� Day� from� three� resettled� areas� of� TMB,� Onar� Baru� and� Onar�

Lama.�

April – September 2013 P a g e | 21

Figure�5 Documentation�of�community�cemetery�visit�in�Tangguh�LNG�area�during�

2013�Easter�day

Government Capacity Building & Civil Society Organization Strengthening

The� continuation� of� capacity� building,� particularly� for� the� local� government� official� at�

province,� regency,� district� and� village� levels,� are� needed� to� ensure� the� principles� of�

good� governance� are� implemented.� � Several� outputs� for� the� government� capacity�

building�program�were�delivered�during�this�reporting�period�including:��

• Continued�mentoring� session� on� strategic� planning� and� annual� budgeting� for�

village� and� district� officials� in� TMB,� Otoweri,� Tomage,� Saengga,� Weriagar,�

Mogotira�and�Babo;�As�many�as�66�villagers�and�district�officials�participated.���

• Continued�mentoring�session�on�governance�administration�management�and�

the� implementation� of� the� population� administration� system� in� Babo,� Tomu,�

Onar,� Taroy,�Weriagar,� Tofoi� and�Otoweri.� As�many� as� 131� government� and�

village�officials�participated.�

• Facilitated�the�implementation�of�Musrenbang�in�TMB,�33�people�participated.���

• Facilitated� and� updated� the� village� monograph� in� Weriagar� and� Mogotira�

involving�21�people.��

• Continued�mentoring�session�on�2014�planning�development�for�health,�marine�

and�fishery,�planning�board,�education�and�agriculture�program�at�regency�level.�

ICBS�program�is�implemented�to�support�and�secure�the�Tangguh�LNG�plant�with�wide�

community�participation�approach.� In�March�2013,�an�MOU�on� ICBS� implementation�

was�established�collaboration�with�LP3BH,�a� local�NGO�focusing�on� legal�advice�and�

advocacy� as� well� security� issues� in� Papua.� Its� participation� has� provided� significant�

outputs�including:��

��

Figure�6�Socialisation�for�local�communities�and�military�

April – September 2013 P a g e | 22

• Conducted� awareness� sessions� on� exclusion� zone� to� communities� in� Babo,�

Tofoi,� Wimro� and� Bintuni� Township.� As� many� as� 362� people� participated,�

including�people�from�the�local�military,�police�and�NGOs.��

• Conducted� audience� with� key� stakeholders� to� getting� more� inputs� on� the�

implementation�of�ICBS�in�the�surroundings�of�Teluk�Bintuni.�

• Facilitated� in-house� training� on� the� implementation� of� voluntary� principles� on�

security�and�human�rights� involving�30�people�from�local�military�and�police� in�

Bintuni.��

A� collaboration� program� for� CSO� strengthening� with� UNIPA� and� LP3BH� program�

delivered�significant�outputs�including:�

• Conducted�awareness�on�domestic�violence�policy� in�Teluk�Bintuni�Township,�

as�many�as�61�people�participated;�

• Conducted�awareness�on�corruption�and�public�information�regulation��in�Teluk�

Bintuni� Township,� Teluk� Wondama� and� Kaimana� Regency;� as� many� as� 90�

people�participated�including�local�government�official,�religious�and�community�

team�leader;�

• Facilitated� the� establishment� of� an� MoU� between� UNIPA� and� Tangguh� for�

capacity�building�and�CSO�program.�The�MoU�will�be�applied�for�the�next�three�

year.��

• Continued�mentoring� session� on� the� local� policy� development� of� oil� and� gas�

revenue�sharing�in�Manokwari,�in�collaboration�with�UNIPA,�UNCEN�and�PSKK�

UGM�

• Facilitated� cultural� awareness� program� to� the� community� in� the� DAVs.� Four�

youth� dancer� groups� from� the� DAVs� performed� traditional� dances� during�

Indonesia�Independence�Day�commemoration�in�Babo,�Tofoi�and�Taroy.���

Figure�7�Documentation�of�Cultural�Program�during�Independence�Day�and�Opening�

Ceremonial�of�Onar�School��

April – September 2013 P a g e | 23

6. EXTERNAL PANEL ANNUAL REVIEW AND NON-COMPLIANCE STATUS UPDATE

The� External� Panel� visit� in� early� 2013� identified� one� repeated� social� non-compliance�

issue�on�the�community�grievance�process,�i.e.�some�grievances�were�not�responded�

in� the� 20-day� limit� as� required� by�AMDAL.�Corrective� actions� have� been� conducted.�

Below�is�the�status�update:���

Level-1 Non Compliance Identified

Status update

Not�responding�in�20�days�in�

75%�(3�out�of�4)�cases,��

Not�logging�grievances�

accurately��

Not�disclosing�Community�

Grievance�procedure�

adequately�so�that�it�is�

understood�and�used�by�

villagers�

Community�grievance�process� is�managed�by� the�CRP�

team.���The�Community�Grievance�Procedure���has�been�

improved� and� implemented,� including� the� mechanism�

for� a� quick� first� response,� clearer� role� and�structure� of�

grievance� response� as� well� simplification� of� grievance�

registration�and�documentation�processes.���

The� community� grievance� mechanism� procedure� was�

simplified� and� communicated� to� create� awareness� for�

other�functions�relevant�to�grievance�response�process.��

Regular� monitoring� on� community� grievance� issues�

during� the� weekly� meeting� between� CRP� and� the�

Jakarta� office� is� still� implemented� including� discussion�

of�any�the�outstanding�issues�on�grievance�response.��

Moreover,�community�grievance�procedure�socialization�

continued� to� be� conducted� in� the� DAVs� to� increase�

community� understanding� in� the� process� of� grievance�

submission.��During�this�reporting�period,�awareness�on�

the� grievance� mechanism� were� conducted� in� � Sebyar�

Rejosari,�Saengga,�Babo,�Irarutu�III,�Tofoi�,�Tomoage�and�

Otoweri;�attended�by�243�people.��

Recent�monitoring� showed� that� during�April� –�October�

2013,� there� were� twenty� four� community� concerns�

submitted�by� the�community�using�grievance�form�and�

were� registered� in� the� grievance� database.� � However,�

out�of�24�concerns,�there�were�only�two�concerns�that�

are� considered� as� real� grievances.� However,� all�

community� concerns� have� been� responded� to� within�

the�time�limit.�����

April – September 2013 P a g e | 24

7. EVALUATION RESULT

The�implementation�of�the�social�program�in�Tangguh�LNG�is�continuing�as�planned�to�

meet�the�AMDAL�commitments.�The�intentions�of�the�current�social�programs�are�not�

merely� to� deliver� services� to� beneficiaries,� but� ultimately� to� develop� ownership� and�

involvement�by�the�locals�in�development�of�initiatives.�The�program�encourages�local�

government� to� take� a� more� active� role� in� the� social� economic� development� of� the�

region.�The�mechanism�is�implemented�through�enhancing�the�stakeholder�knowledge�

of� role� and� function,� and� involving� them� to� actively� participate� in� planning� and�

implementation�of�the�program.�The�continued�capacity�building�and�mentoring�is�done�

in�collaboration�with�the�program�implementing�partners.���

The� British� Council� and� Poetra� Sampoerna� Foundation,� as� the� key� partners,� were�

providing� technical� assistance� for� officials� of� the�Teluk�Bintuni�Regency� in�education�

programs.�Meanwhile,� the�MediaCiptraCitra� (MCC)� and� YSA� are� the� key� partners� to�

assist� and� enhance� the� capacity� of� the� Regency� Health� Office� in� improving� health�

status� at� community� level.� PSKK-UGM� has� provided� training� and� mentoring� for�

government� officials� at� the� village,� district� and� regency� level.� These� are� efforts� to�

improve� government� awareness� in� accordance� with� good� governance� principal�

implementation,�as�well�delivery�public�basic�service�for�the�local.���

The�Livelihood�program�continued�to�make�good�progress� in�the�areas�of�agriculture,�

fisheries,� micro-enterprise� and� micro-finance� development.� Several� activities� have�

been� implemented� during� this� reporting� period� in� DAVs� and� Non� DAVs,� mainly�

targeting�women� and� indigenous� people.� The� agriculture� development� program�was�

focusing�on� increasing�household� consumption� and� commercial� capacity.� The� recent�

fishery�program�continued� through� the�monitoring�of� fishermen’s�activities,�provision�

of� mentors� and� equipment,� as� well� as� assessing� opportunities� for� local� market�

expansion� for� fishery� products� from� the� community.� The� program� also� provided�

scholarships�for�students�from�the�DAVs�interested�in�fishery�program�development.�In�

collaboration�with�marine�school�in�Sorong�15�selected�students�from�the�DAVs�were�

recruited�every�year.�They�will�study�for�the�next�three�years�with�full�scholarship�from�

Tangguh�project.��

There� are� two� strategies� in� the� agricultural� development� program;� the� first� is� to�

implement� productive� agriculture� with� the� aim� to� generate� a� profit.� This� can� be�

achieved�by�planting�crops�that�have�an�economic�value,�such�as�fruit�and�vegetables�

that�are�tradable�commodities.��Currently�the�program�is�focused�on�the�Tofoi,�Tanah�

Merah,� Saengga� and� Babo� villages� with� the� major� market� being� Tangguh� LNG�

Catering.� The� second�strategy� is� to�develop� sustainable� subsistence� agriculture�with�

the�aim�of�providing�better�nutrition�to�households�through�the�plantation�of�vegetables�

and� herbs.� This� program� is� focused� on� the� villages� of� Weriagar,� Mogotira,� Tomu,�

Ekam,�Taroy,�Otoweri� and�Tomage�which�have� low� levels�of� soil� fertility.�Given� that�

this� is� a� process� of� cultural� change� for� the� community� in� DAVs,� the� program� is�

implemented� in� several� stages� including� training,� group� mentoring� and� one-on-one�

April – September 2013 P a g e | 25

assistance.� � � The� expected� change� should� be� more� sustainable� and� eventually�

permanent.�To�help�the�community�in�implementation�of�the�program,�the�project�also�

provided� technical� support� including� seed� distribution,� field� development,�

maintenance,�storage�and�processing�of�the�agriculture�products.���

��

Figure�8�Documentation�of�Agriculture�Program�in�DAVs:�Commercial�and�Subsistence�

project � �

Considering� to� the� economic� potential� and� the� future� need,� the� livelihood� program�

recently� developed� a� pilot� industrial� agriculture� program� based� on coffee� and�

eucalyptus�at�the�village�with�potential,�i.e.��Tomage�and�Onar.�Currently,�the�program�

focuses� on� the� assessment� of� land� capacity� as�well� as� the� strengthening� of� farmer�

groups�who�will�work�on�the�pilot�project.����

The� livelihood� program� continued� to� create� an� opportunity� for� the� community� to�

increase� household� income� through� home� based� industry� development� which� uses�

local�resources.��Several�products�such�as�shrimp�crackers�&�nugget,�shrimp�ball,�fish�

ball,� salted� fish� and� chips�which�have�economic� value�were�produced.�The�products�

provide�variety�of�food�for�household�consumption,�as�well�as�for�sale�to�the�visitors.�

Furthermore,�as�a�strategy�to�create�a�market�for�community�products,�the� livelihood�

program�continued�to�assess�the�opportunity�of�developing�of�new�local�market.�The�

outlet� in� Babo� and� kiosk� in� Tofoi� have� been� running� and� providing� benefits� for� the�

supplier�from�community�in�DAVs.�Moreover,�there�is�a�plan�to�expand�a�new�outlet�in�

Bintuni� Township.� This� project� is� in� collaboration�with� the� local� government� and�will�

provide� greater� opportunities� to� market� commercial� products� from� DAVs.� Recent�

monitoring�showed�that�the�program�is�still�in�preparation�for�the�management�as�well�

as�recruiting�people�who�will�work�to�manage�the�operations�of�the�outlet.�It�should�be�

launched�in�the�next�reporting�period.��

Technical� assistance� to� the� existing� stocking� points� in� the�DAVs�was�maintained� to�

ensure� the� continuity� of� agriculture� and� fishery� supply� to� Tangguh� LNG� catering.�

Recently�the�stocking�points�have�shown�professionalism�in�managing�the�community�

products.� They� received� technical� support� and� assistance� on� business� and� product�

management� from� the� livelihood� implementing� partner.� During� this� reporting� period,�

product�supply�from�the�DAVs�to�Tangguh�LNG�catering�increased�compare�the�same�

period� in� previous� year.� � Total� supply� of� fruits,� vegetables,� fish,� crab� and� shrimp�

April – September 2013 P a g e | 26

delivered� to� Tangguh� LNG� Catering� in� January� to� September�was� 233� tons.� These�

figures�equal�to�5.4�billion�rupiahs�(USD�500�000).��� �

��

Figure�9. Vegetable,�Fruit�and�Fish�delivery�from�Stocking�Points�to�Tangguh�LNG�

Catering Source: Tangguh Livelihood Program, September 2013

Moreover,� the� livelihood� program� also� continues� to� create� opportunities� to� increase�

community� income� as� an� alternative� to� being� employed� at� Tangguh� LNG.� Several�

programs� were� developed� including� machinery� repair� workshop� and� outlet�

development� in� Babo� village.� The� program� provided� a� comprehensive� training,�

including� technical� and� business� management.� Recent� monitoring� showed� that� the�

bicycle�repairing�workshop�has�received�work�from�Tangguh�and�community.�A�work�

agreement�between�Tangguh�LNG�maintenance� and� the�workshop�was�established.�

Between� February� and� September� 2013,� the� workshop� has� received� 48� units� of�

bicycles� from� Tangguh� LNG� to� be� repaired� with� total� value� of� IDR� 94� million.� The�

workshop�also�received�repair�orders�from�the�surrounding�community.���

Figure�10�Documentation�of�Bicycle�Workshop�in�Babo��

The�machinery�workshop� developed� in� Saengga� and� Taroy� have� started� operations.�

However,�technical�support�to�the�workshop�is�still�continuing�to�ensure�standards�are�

met.�One�technical� facilitator�was�recruited�to�assist� the�workshop.�The�workshop� is�

now�ready�to�receive�orders�from�the�community.��

Various� livelihood� activities�delivered�under�Tangguh�LNG�social� program�since�2009�

has� resulted� in� a� good� impact� to� the� household� income� in� all� DAVs� areas� for� both�

Indigenous�and�non-Indigenous�people.�Based�on�the�2012�livelihood�survey,�there�is�a�

April – September 2013 P a g e | 27

significant� increase� of� household� income� in� north� and� south� areas� as� described� in�

Figure�37.����

��

��

Figure�11�The�average�of�annual�invome�per�household�in�DAVs�(in�rupiahs)�Source: Livelihood Survey in Teluk Bintuni, 2012- PSKK UGM

An�effort� to� increase�community� incomes,�particularly� for� the� indigenous�people,�will�

be�pursued�in�the�long�term.�Especially�after�the�implementation�of�the�electrification�

program�expected� in� the�next� period,� a� potential� livelihood�program�enhancement� is�

being�identified�particularly�microenterprise�in�agriculture�and�fishery�based.����

The�presence�of� the�Tangguh�LNG�Plant� in� the�

Bintuni� region� has� provided� the� opportunity� for�

communities� to� be� employed� in� the� LNG�

industry.�Data� in� September� 2013� showed� that�

2,645� people�were� employed� at� Tangguh� LNG,�

of�which� 53.4%�came� from�Papua.� In� addition,�

there�were�157�Papuan�employees�who�worked�

for� various� temporary� projects� in� the� Tangguh�

area.���

Furthermore,�in�order�to�help�Tangguh�employee�

in� accessing� and� managing� their� salary,�

particularly� the� people� from� DAVs,� two�

automatic� teller� machines� (ATM)� have� been�

recently� installed� in� Tangguh� LNG� site� (Stenkol�

area�and�Admin�Building).�These�ATM�machines�

can�be�used�by�employee� from�Direct�Affected�

Village�(DAV)�to�withdrawals�their�salary�prior�to�

being� “off-duty”.� They� are� for� non-cash�

transactions� for� all� employees� who� work� in�

Tangguh�LNG�Site.��

Documentation�of�New�ATM�in�

Tangguh�LNG�Site�

April – September 2013 P a g e | 28

However,�as�part�of�Tangguh�LNG’s�commitment�to�AMDAL,� it� is�necessary�to�keep�

the�Tangguh�LNG�project�site�free�from�cash�transactions�(no�trading)�even�though�the�

ATM�machines� are� available.� Therefore� Tangguh� LNG� will� not� promote� or� facilitate�

trading�at�site.�

The�target�of�Papuan�Workforce�in�the�AMDAL�commitment�versus�the�achievement�

is�as�follows:��

��Table�2.�AMDAL�Workforce�Commitment�vs.�Actual�during�Operation�Phase�

SKILL LEVEL

2009 Amdal Commitment 2013 Amdal Commitment

DAV Rest of Papua DAV Rest of Papua

Target��

(%)�

Actual��

(%)�

Target��

(%)�

Actual��

(%)�

Target�

2013�

(%)�

Actual�

Sep’13�

(%)�

Target�

2013�

(%)�

Actual�

Sep’13�

(%)�

Unskilled 100� 70� 0� 30� 100� 100 0� 0�

Low skilled 50� 44� 50� 56� 70� 68 30� 32

Semi-skilled 2� 15� 27� 61� 8� 35 41� 56

Skilled 0� 0� 8� 20� 0� 2 14� 25

Managerial/ Supervisory

0� 0� 3� 11� 0� 2 7� 18

Source: Tangguh Workforce Management, September 2013

Generally,� the� actual� progress� of� Papuan� workforce� shows� that� most� targets� have�

already� been�met.� However,� the� numbers� of� unskilled� and� low-skilled� workforce� in�

DAVs� are� below� target;� these� low� numbers� are� compensated� by� the� number� of�

unskilled�and�low�skilled�level�workers�from�Irarutu�III,�which�is�non-DAV,�hired�to�work�

in�the�Babo�Operation�facility�including�camp,�airport�and�jetty.�This�resulted�in�Papuan�

workers�numbers�exceeding�the�target�for�non-DAV�employment.���

This�reporting�period�showed�an�increase�of�local�manpower�skills.�Currently�as�many�

as�875�Papuans�are�employed� in� the� skilled� and� semi-skilled� level� areas.�Meanwhile�

there� is� an� increasing� number� of� Papuan� who� reached� the� positions� of�

supervisory/managerial�level�(72�people).��

April – September 2013 P a g e | 29

��

�Figure�12��Papuan�Workforce�Composition�Trend�in�Tangguh�Operation�2010-2013

Source:�Tangguh�Workforce�Management,�September�2013��

Although� the� recruitment� from� DAVs� is� close� to� meeting� the� AMDAL� commitment�

target,� there� was� an� increasing� expectation� from� the� community� to� get� more�

opportunities� to� work� at� Tangguh� LNG,� particularly� with� the� Tangguh� expansion�

project.� It� is� important� to� reduce� the� community� dependency� of� Tangguh� project� by�

creating� other� potential� jobs� in� the� villages� as�well� as� Bintuni� Bay� area.� The�micro-

enterprise�program�continues�to�develop�the�home�businesses�in�the�village�involving�

the� indigenous�people.�Two�machinery�workshops� in�Saengga�and�Taroy,�Outlet�and�

Bicycle�workshop�in�Babo,�as�well�as�stocking�points�programs�in�several�villages�are�

well� established� and� provided� opportunities� for� the� local� to� improve� their� household�

income.��

On�the�other�side,�the�overall�education�program�has�shown�good�achievements�in�the�

outcome� level� including� a�high� rate�of� student�graduation� in� the�national� exams�and�

student�participant�ratio�in�the�learning�process.��

��

Figure�13�� Student�Graduation�in�National�Exams�and�Participant�Ratio�in�Bintuni�Bay�

Regency�Source: Tangguh Education Unit, September 2013

9 9 %

9 1% 9 0 %8 6 %

9 4 % 9 6 %9 3 %

8 0 %

6 6 %

9 9 . 6 %9 6 % 9 3 %

10 0 %10 0 %10 0 %

Elementary Junio r H igh Senio r H igh

2009 2010 2011 2012 2013

86.1

99.5

65.8

88.7

20.5

71.1

2006 2007 2008 2009 2010 2011 2012

Elementary Junior high Senior high

April – September 2013 P a g e | 30

In�2013,�student�graduation�rate�at�all�education� levels� (elementary,� junior�and�senior�

high)� in� Bintuni� Bay� is� 100%.� This� is� the� first� time� for� Bintuni� Bay� to� get� such� a�

successful� achievement.� Continuous� support� to� improve� student� graduation� was�

provided�including�capacity�building�for�teachers�in�preparing�learning�material�that�are�

standardized� and� aligned� with� the� national� curriculum.� Nevertheless,� as� is� usual� in�

Papua,�there�is�still�a�gap�of�teacher�number�in�the�schools,�including�the�DAVs.��The�

Tangguh�education�program�has�recruited�several�teachers�to�assist�learning�process�in�

DAVs.�Currently�there�are�21�part-time�teachers�(13�of�them�are�women)�recruited�for�

DAV�schools�with�full�support�from�the�Tangguh�project.��

In�the�Health�sector,�the�partners�of�community�health�programs,�MCC�and�YSA,�are�

working� in�close�collaboration�with�the�Health�Office�at�regency�and�district� levels�as�

well� as� with� the� community� health� services� at� village� level.� Several� outputs� were�

delivered�during�this�period�including�malaria�control,�mother�and�child�health�program,�

water�and�sanitation,�community�awareness�and�community�referral�for�early�diagnosis�

and� treatment.� Recent�monitoring� showed� the� program� is� successful� in�maintaining�

the� morbidity� of� malaria� in� DAV� areas,� as� well� as� reducing� mortality� cases� among�

children�due�to�the�diarrhea.���

The�figure�below�shows�the�malaria�prevalence�rate�until�August�2013.�Compared�to�

2012,�malaria�prevalence� in�2013�decreased� from�0.3%�to�0.09%.�A� robust�effort� in�

malaria� control� during� this� reporting� period� contributed� to� a� successful� low� level� of�

malaria�prevalence�in�this�region.�The�efforts�included�ensuring�the�implementation�of�

early� diagnostic� and� treatment� (EDAT)� in� community� health� services,� conducting�

surveillance� and�mitigation� of�malaria� cases,� developing�malaria� cadres� in� the� village�

and�company�level,�distributing�required�medicines�and�providing�adequate�treatment�

at�community�level.���

��

�Figure�14�Malaria�Prevalence�in�DAVs�and�Selected�Villages��Source:�Tangguh�PEH,�September�2013�

The� fatality� trend� of� diarrhea� cases�was� successfully� kept� at� a� low� level.� Based� on�

routine�surveillance,�there�were�two�fatality�cases�recorded�due�to�severe�diarrhea� in�

Tofoi� and� Babo,� due� to� increasing� number� of� diarrhea� cases� during� dry� season� and�

delayed� treatment.� Regular� awareness� program� on� personal� hygiene� and� diarrhea�

Malaria prevalence in DAVs areas & selected

villages

April – September 2013 P a g e | 31

treatment� management� continued� to� be� conducted,� involving� health� cadres� in� the�

villages.�During�this�reporting�period,�as�many�as�430�people�from�all�DAVs�participated�

on� diarrhea� education� program.� It� is� expected� that� the� community� knowledge� on�

diarrhea�prevention�will�increase,�and�a�healthy�lifestyle�will�be�adopted.��

��

Figure�15�Case�Fatality�Rate�due�to�Diarrhea�in�DAVs�Source:�Tangguh�PEH,�September�2013�

Trained�health�cadres�and�community�health�services�in�the�village�have�contributed�to�

improving� people’s� access� to� early� treatment.� Collaboration� between� traditional�

treatment� and� health� providers�was� also� developed� to� ensure� people� get� adequate�

treatment.� Social� survey�was� concluded� and� showed� that� the� community� people� in�

DAVs�have�increased�their�awareness�to�seek�medical�treatment�instead�of�traditional�

treatment�in�cases�of�sickness�in�the�family.��

In�the� last�two�years,�Tangguh�LNG�Community�Health�program�has�supported�Teluk�

Bintuni� hospital� development� in� Bintuni� Township.� Continued� technical� support�was�

provided�covering�management,�technical�aspect�and�infrastructure.�In�the�future,�the�

hospital�will�become�one�of�the�main�health�service�referral�in�this�region.�Currently�the�

hospital� is� functioning� and� is� delivering� medical� checkups� (MCU)� for� Tangguh� LNG�

employees�and�communities�around�Bintuni.���

Month

Employees

associated with

Tangguh Project

Other

Total

February 5 5

March 7 10 17

April 49 6 55

May 16 37 53

June 17 25 42

July 13 24 37

August 7 6 13

Table�3�MCU�program�in�Teluk�Bintuni�Hospital�in�2013 Source:�Tangguh�PEH,�September�2013�

� �

April – September 2013 P a g e | 32

On� the� HIV� and� AIDS� issues,� the� community� health� program� actively� promoted�

prevention�and�awareness�programs�in�particular�to�high�risk�people,�as�well�as�in�the�

DAVs.�This� is�an�effort� to�encourage� them�to�have�safe�behavior�and� to�prevent� the�

spread�of�STI� and�HIV� cases� among� the� community.�STI� surveillance�with� volunteer�

approach�was�conducted�to�understand�the�HIV�epidemic�at�community� level.� �There�

were�four�clinics�providing�STI�diagnostic�and�treatment�that�received�full�support�from�

the�local�government.�A�voluntary�counseling�and�testing�(VCT)�clinic�was�established�

at� the�RSUD�Bintuni� Bay� giving� community� the� opportunity� to� understand� their� HIV�

status.�However,�the�absence�of�a�Local�AIDS�authority�(KPAD)�in�Bintuni�Bay�slightly�

inhibited� the� acceleration� of� the� program� to� combat� HIV� and� AIDS� in� this� region.�

Support� for� the� establishment� of� KPAD� to� coordinate� the� HIV� prevention� program�

needs�to�be�planned�in�the�next�period.���

The� governance� program� provides� comprehensive� support� for� local� government�

officials�to�improve�their�capacity�in�leading�local�development�programs.�Since�Bintuni�

Bay�regency�is�a�new�authority�that�was�established�in�2004,�the�governance�program�

is� still� focusing� on� improving� the� local� government�mind-set� to� deliver� better� public�

services� including� through� planning,� budgeting� and� administration� aspects� at� village,�

district� and� regency� levels.� Continuous� training� and� comprehensive� mentoring� was�

delivered�during�this�reporting�period�in�order�to�improve�local�government�capacity.��

The� program� achieved� significant� progress� in� supporting� the� local� government� to�

produce�several�strategic�documents�including�a�draft�of�revenue�sharing,�annual�plan�

for�5�key�sectors,�as�well�as�strategic�planning�at�district�and�village�level.�The�program�

will�continue�to�provide�technical�assistance.�

A� series� of� workshops� to� raise� awareness� on� the� anti-corruption� regulation� was�

conducted� in� several� regencies� including� Bintuni,� Teluk� Wondama� and� Kaimana,� in�

collaboration� with� LP3BH.� As� many� as� 90� people� participated� including� local�

government� officials,� community� team� leaders� and� legislative� members.� This� is� an�

effort� to� promote� the� principle� of� accountability� and� good� governance� to� the�

community�as�well� as�changing� their�mind-set�and�behavior� to�be�more� transparent,�

particularly�in�relations�to�public�issues�and�development�programs.��

Tangguh� social� programs� were� implemented� since� 2002� and� have� contributed� to�

improvement�of�community�welfare� in� the�DAVs.�A�comprehensive�survey�on�social�

economic�which�is�conducted�regularly�also�included�measuring�community�perception�

on� welfare� index� combining� health,� economic� and� education� indicators.� The� latest�

survey� showed� an� increasing� trend� suggesting� that� the� community� perceive� that�

welfare�is�improving�in�the�DAVs.��

April – September 2013 P a g e | 33

Figure�16 Community�perception�on�Welfare�(Welfare�Index)�in�DAVs�Source:�Social�economic�survey,�2007,�2009,�2011�and�Livelihood�Survey�2012;�PSKK�UGM�

Indigenous People Development �

As�defined�in�the�Indigenous�People�Development�Plan�(IPDP)�document�and�aligned�

with� the� Company’s� strategy� and� commitment,� efforts� to� support� the� Indigenous�

people� development� continue.� Special� programs� targeting� indigenous� people� were�

created,� including�a�workforce�program�and�capacity�building� in�micro-scale�business�

opportunities�that�link�to�the�Tangguh�project.����

Papuan� involvement�on�Tangguh�workforce� is�stable�for� the� last� two�years,�at�nearly�

54%� of� the� total� employees.� �Of� the� 2,628� total� employees� in�October� 2013,� 22%�

came�from�the�DAVs,�of�which�most�are� low�skilled� level�workers.� �To� improve�their�

skill� level� over� time,� a� development� program� for� these� workers� being� provided� to.��

Currently,� there� are� six� people� from� DAVs,� who� reached� manager� and� supervisor�

position� which� is� an� increase� compared� to� 2010� where� there� was� only� one� DAV�

worker�in�a�managerial/supervisory�position.��The�number�of�female�workers�involved�

in�the�Tangguh�project,�either�from�DAVs�or�Papua,�is�still�quite�low.�Based�on�current�

monitoring,�there�were� less�than�200�female�workers�for�all�activities� in�the�Tangguh�

LNG�operation.��

��

�Figure�17�The�trend�of�DAVs�and�Papuan�Workforce�in�Tangguh�operation�

Best: 100

Poor: 0

April – September 2013 P a g e | 34

Tangguh�continues�to�provide�opportunities�for�indigenous�people�to�work�in�Tangguh�

and�meet� the� AMDAL� target� (e.g.� by� 2029� at� least� 85%� of� the�Operation� Tangguh�

employees�should�be�Papuan).��As�we�have�shown�on�Table�1�above,�the�employees�

from� DAVs� primarily� filled� the� un-skilled� or� semi-skilled� positions.� � Therefore,� to�

improve� their� capacity,� a� set� of� comprehensive� targets�were� defined� in� the� Papuan�

Development� program,�which� involves� contractors� and� other� key� local� stakeholders�

including�UNIPA.��Moreover,�to�develop�basic�capacity�for�employment�in�the�future,�a�

scholarship�program�was�created�for�students�in�DAVs.�The�scholarships�are�provided�

for� various� levels� of� education� to� provide� a� talent� pool� for� Tangguh� manpower�

requirements,� as� well� as� other� needs� in� Bintuni.� � The� table� below� describes� the�

scholarship�program�for�students�in�DAVs�from�2008�to�September�2013:��

��Table�4 �Scholarship�program�delivered�for�local�students�in�2008�–�2013

Provided 2008 2009 2010 2011 2012 2013

Oil & Gas senior high 2� 26� 41� 28� 34� 39�

Marine and fishery senior high

5� 7� 10�

General senior high 3 3� 3� 3�

University including AKAMIGAS, UNCEN, UNIPA, TIER 1*

� � 25� 85�

Source:�Tangguh�Education�Program,�October�2013�

The�livelihood�program�continues�to�create�opportunities�for�micro�businesses�targeted�

directly� to� indigenous� people.� The� program� still� focuses� on� agriculture� and� fishery�

products�in�order�to�provide�supply�to�Tangguh�catering�and�local�market.�To�optimize�

the� distribution� of� DAV� products,� some� new� initiatives� were� created� including�

expansion�of�the�local�market�through�a�new�outlet�in�Bintuni�Township.�The�outlet�in�

Bintuni� replicates� the� Babo� outlet� and� sells� DAVs� products� such� as� sago� crackers,�

banana�crackers,�salted�fish�and� fresh�shrimp� to� the� locals.�Further,�new�community�

businesss�such�as�bicycle�and�machinery�workshop� in�Babo,�Saengga�and�Taroy�are�

functioning�and� receiving�orders� from�the�Tangguh�maintenance�department�and� the�

local� community.� These� businesses� are� mostly� managed� by� the� indigenous� people�

who� received�a�comprehensive� training�on� technical� and�management�skills.�Current�

monitoring�showed�that�the�bicycle�workshop�has�a�capacity�to�repair�15�bicycles�with�

total�business�of�approximately�IDR�30�million�in�average�per�month.����

On�a�macro�scale,� the�BHBEP�program�continues� to�support� the�capacity�building�of�

indigenous� firms� on� business� management� and� to� increase� their� opportunity� to�

compete� and�get� involved� in� a� variety�of� projects� including� for� Tangguh.� There�have�

been� 18� indigenous� firms� from� across� the� Bird� Head� regions� (Manokwari,� Sorong,�

Fakfak�and�Teluk�Bintuni)�who�received�technical�assistant�on�business�management�

delivered�by�PT�Andalan�Unggul�Consultant.�The�mentoring� increases� the� indigenous�

firms’� capacity� in� business� management� and� improves� their� ability� to� deliver� good�

businesses.��

April – September 2013 P a g e | 35

Figure�18�Capacity�progress�of�Indigenous�Firms�in�the�latest�condition.�Source:�PT�Andalan�Unggul,�October�2013�

The� indigenous� firms� have� participated� in� some� various� projects� and� business� that�

organized�by�government,�private�sectors,�as�well�oil�and�gas�companies�including�BP.�

Since�2008,�there�was�a�significant�increase�in�the�number�of�local�firms�receiving�new�

contracts�in�projects.�However,�there�were�very�few�local�firms�that�have�opportunity�

to� be� involved� in� the� Tangguh� project� due� to� high� standard� requirement.� BHBEP�

continues�to�advocate�and�increase�the�local�firm�capacity�to�meet�BP�requirements.���

Figure�19�Number�of�contract�won�by�local�firms�during�2006�until�September�2013��

(in�million�dollars)�Source:�PT�Andalan�Unggul,�October�2013�

A�comprehensive�assessment�in�understanding�the�cumulative�impact�of�the�Tangguh�

project�operation�and�other�development� in�Bintuni�Bay,�especially� to� the� indigenous�

people,�was�conducted�involving�experts�from�universities.��The�result�provided�several�

strategic� recommendations� for� consideration� during� the� formulation� of� the� new�

AMDAL� and� the� future� Tangguh� social� programs.� � The� experts� recommend� BP�

1.58

0.4

1.5 1.4

1.6

2.7

2008 2009 2010 2011 2012 Sep-13

BP

Oil & Gas Non BP

Private Sector-Non Oil & Gas

Government

April – September 2013 P a g e | 36

continue� its� local� capacity� development�program�with�more�emphasis�on� indigenous�

people�development.���

At�the�community�level,�Tangguh�continues�to�build�awareness�on�the�impact�of�influx�

migration� for� village� and� district� officials.� The� Tangguh� social� team� also� provided�

comprehensive� mentoring� on� migration� control� through� the� implementation� of�

population�information�and�administration�systems.�Recently,�several�villages�have�also�

established� a� local� regulation� on� migration� management� in� order� to� anticipate� the�

increasing�number�of�local�migrants�and�the�social�condition�in�the�villages.��

From� a� cultural� aspect,� Tangguh� continues� to� keep� the� preservation� of� local� values�

including� history,� customs,� languages� and� arts.� Several� efforts� were� conducted�

including� documentation� of� cultural� values� through� research� and� assessment� on�

cultural� issues,�collection�and�publication�of� folklore�and�support�of�cultural�events� in�

communities.� As� mandated� in� AMDAL,� Tangguh� has� also� kept� its� commitment� to�

maintain� the� heritage� of� local� cultural� sites� by� the� communities� in� surrounding� of�

Tangguh�site�project.�����

Figure�20�the�handover�ceremony�of�folklore�story�books�from�the�TLO�team�to�Local�

government�and�art�performance�of�Babo�community�during�Independence�Day�

commemoration�2013.�These�are�as�recognition�and�effort�of�Tangguh�commitment�to�

keep�the�local�values�

To� ensure� the� Indigenous� people� development� programs� meet� its� objective,� The�

Tangguh� project� will� evaluate� and� enhance� the� program� in� the� future� to� involve�

external�stakeholders,�in�particular�the�local�government,�for�program�collaboration�and�

implementation.��

��