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Geothermal Power Generation Project (RRP INO 52282)

Resettlement Plan

Draft November 2019

INO: Geothermal Power Generation Project - Dieng Geothermal Plant Expansion Sub-Project)

Prepared by PT Deo Dipa Energi for the Asian Development Bank.

http://www.adb.org/Documents/RRPs/?id=52282-001-3

http://www.adb.org/Documents/RRPs/?id=52282-001-3

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Dieng Geothermal Plant Expansion Sub-Project

Resettlement Plan

PT Geo Dipa Energi October 2019

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CURRENCY EQUIVALENTS (as of 20 March 2020)

Currency unit – Rupiah (IR)

IR1.00 = $0.000063 $1.00 = IR15,812.00

ABBREVIATIONS

ADB AP

Asian Development Bank Affected Person

APH AH

Akta Pelepasan Hak/ Ownership Transfer Letter Affected Household

BPN Badan Pertanahan Nasional / National Land Agency

CSR Corporate Social Responsibility

EPC Engineering, Procurement and Construction

GDE GOI

Geo Dipa Government of Indonesia

GPGP Geothermal Power Generation Project

GRM Grievance Redress Mechanism

IPPKH Ijin Pinjam Pakai Kawasan Hutan / Licence to Borrow of Forest Area

LRP Livelihood Restoration Plan

MOEF Ministry of Environment and Forestry

MOMR Ministry of Energy and Mineral Resources

MW Megawatt

NGO Non-Governmental Organisation

NTP Notice To Proceed

PKK Pembinaan Kesejahteraan Keluarga / Village Women’s Organisation

PMN Penanaman Modal Negara / State Equity Injection

ROW Right of Way

RP Resettlement Plan

SHGB Sertifikat Hak Guna Bangunan / Certificate for Use of Building

SPS Safeguard Policy Statement

SS Sub-station

TL Transmission line

TOR Terms of Reference

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Term of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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Table of Contents

Abbreviations .............................................................................................................................................. II Table of Contents ....................................................................................................................................... III I. List of Tables ....................................................................................................................................... V Ii. List of Figures...................................................................................................................................... V Definition of Terms .................................................................................................................................... VII Executive Summary .................................................................................................................................. 10 I. Introduction ....................................................................................................................................... 15

A. BACKGROUND ............................................................................................................................. 15 B. SUB-PROJECT DESCRIPTION ........................................................................................................ 15

Ii. Scope of Land Acquisition and Resettlement ................................................................................ 17 A. LAND REQUIREMENTS .................................................................................................................. 17 A. DUE DILIGENCE CONCERNING LAND OWNED / LEASED BY GEO DIPA ............................................. 17 B. INVENTORY OF LOSSES (IOL) ........................................................................................................ 21 C. SCOPE OF IMPACTS ..................................................................................................................... 22

Iii. Socio-Economic Profile And Perceptions Of Affected People ..................................................... 27 A. PROFILE OF KARANG TENGAH..................................................................................................... 27 B. SUMMARY OF SOCIO-ECONOMIC SURVEY FINDINGS ..................................................................... 28

Iv. Legal Framework ............................................................................................................................... 40 A. NATIONAL REGULATIONS ............................................................................................................. 40 B. ASIAN DEVELOPMENT BANK (ADB) POLICY ................................................................................... 42 C. GAP ANALYSIS ............................................................................................................................ 43 D. PROJECT RESETTLEMENT PRINCIPLES ......................................................................................... 43 A. PROCEDURE AND PRINCIPLE OF NEGOTIATED LAND ACQUISITION FOR PIPELINE AND INSPECTION ROAD

ROW 45 B. LAND CLEARING PROCEDURE ...................................................................................................... 47 C. UNANTICIPATED IMPACTS AND RP UPDATE. .................................................................................. 47

V. Consultation, Participation, And Information Disclosure ............................................................. 47 A. CONSULTATION AND PARTICIPATION ............................................................................................ 47 B. DISCLOSURE ............................................................................................................................... 50

Vi. Grievance Redress Mechanism ....................................................................................................... 56 Vii. Entitlements, Assistance And Benefits ...................................................................................... 59

A. ELIGIBILITIES ............................................................................................................................... 59 B. ENTITLEMENT MATRIX.................................................................................................................. 59 C. VALUATION OF ASSETS ............................................................................................................... 63 D. SPECIAL ASSISTANCE TO SEVERELY AFFECTED AND VULNERABLE HOUSEHOLDS ........................ 64

Viii. Livelihood Restoration ................................................................................................................. 66 A. SUMMARY OF LIVELIHOOD RESTORATION ASSESSMENT ................................................................ 66 B. LIVELIHOOD RESTORATION STRATEGY & ASSISTANCE PACKAGE ................................................... 68 C. LONG TERM RE-ORIENTATION OF COMDEV PROGRAM .................................................................. 70 D. IMPLEMENTATION SCHEDULE ....................................................................................................... 71 E. ESTIMATED BUDGET .................................................................................................................... 71

Ix. Resettlement Budget And Financing Plan ..................................................................................... 77 A. ESTIMATED COST FOR RESETTLEMENT ........................................................................................ 77 B. PROCEDURE FOR FUNDS FLOW MECHANISM ................................................................................ 77

X. Institutional Arrangements .............................................................................................................. 79 A. INSTITUTIONAL ARRANGEMENTS ................................................................................................... 79 B. CAPACITY BUILDING .................................................................................................................... 84 C. IMPLEMENTATION SCHEDULE FOR RP ........................................................................................... 84

Xi. Monitoring And Reporting ................................................................................................................ 86 A. INTERNAL MONITORING ................................................................................................................ 86 A. INTERNAL MONITORING INDICATORS ............................................................................................. 86 B. EXTERNAL MONITORING .............................................................................................................. 88 C. REPORTING AND DISCLOSURE ..................................................................................................... 90

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APPENDICES

1. Status of Land Certification Process for GDE-owned land

2. Lease Agreement for Use land at GDE-owned (ex-mess GDE) site

3. IOL Questionnaire and sample map

4. Map of the 6 plots land to be acquired

5. Confirmation from Head of Karang Tengah Village on the land ownership status of 6 land that to be acquired

6. Lay-out map of the individual plots of land leased to 23 tenant farmers

7. List of tenant farmers and size of plot leased

8. Lay out map of occupied land between well pad 10 to well pad 7

9. List of AHs, Losses and Summary of Socio Economic Profiles

10. SES data collection instruments

11. Karang Tengah Village Profile and SES Results

12. Gap Analysis

13. Summary Community Consultation Reports for the Dieng Geothermal site

14. Attendance sheets for 4 FGDs

15. NGO Consultation Report, 11 October 2019

16. Dieng-2 draft PIB

17. Livelihood Restoration Assessment

18. TOR for Specialist NGO services (geo-social-spatial information system)

19. TORs for PMC Consultants for RP and ComDev Reorientation

20. Template for Internal Monitoring Report

21. TOR for External Monitoring Agency

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I. LIST OF TABLES

Table 1. Project Components and Land Requirements for the Proposed Dieng Geothermal Power Plant

Expansion.................................................................................................................................................... 19 Table 2. Potential number of households affected by land acquisition and land clearingTable ............... 24 Table 3. Severely Affected Households ...................................................................................................... 25 Table 4. Vulnerable Affected Households ................................................................................................... 26 Table 5. Summary of Impacts due to Land Acquisition and Land Clearing ................................................ 26 Table 6. Profile of Karang Tengah Village .................................................................................................. 27 Table 7. Number of Persons Living with the AHs* and Number of Gainfully Employed ............................. 30 Table 8. Other Views Concerning the Sub-project ..................................................................................... 35 Table 9. Suggestions to Ensure that Benefits Accrue to Local Communities ............................................. 35 Table 10. Reasons given for support / rejection of the Project ................................................................... 36 Table 11. Best Ways to Mitigate Negative Impacts for Local Community .................................................. 37 Table 12. Best Way to Communicate Project Matters to Community ......................................................... 37 Table 13. Reasons for Responses Shown in Table .................................................................................... 38 Table 14. Party to Report Complaints to or to Seek Clarification Through ................................................. 38 Table 15. Consultation and Participation PlanTable ................................................................................... 52 Table 16. The Sub-project’s Entitlement Matrix .......................................................................................... 60 Table 17. Assessment Approaches Using Indonesia’s Valuation Standards ............................................. 63 Table 18. Livelihood Restoration Activities ................................................................................................. 69 Table 19. Implementation Schedule for Livelihood Restoration / Enhancement and new ComDev

Activities: ..................................................................................................................................................... 73 Table 20. Cost Estimates for Livelihood Restoration Plan and ComDev Reorientation Program under the

Dieng-2 Expansion sub-project. .................................................................................................................. 75 Table 21. Overall Cost Estimates For Resettlement Plan & Project Benefits ............................................. 78 Table 22. Responsibilities concerning Resettlement Plan implementation ................................................ 82 Table 23. Land Acquisition Implementation Schedule ................................................................................ 84 Table 24. Suggested Internal Monitoring Parameters and Indicators ........................................................ 86 Table 25. Suggested External Monitoring Indicators .................................................................................. 89

II. LIST OF FIGURES Figure 1. Proposed Dieng Geothermal Plant Expansion Components – Power Plant, new wells (in

existing wellpads), SAGS (new pipeline alignment within existing pipeline and inspection roads ROW) .. 16 Figure 2. Adjusted Transmission Line Route From Dieng 1 Substation to Dieng 2 Power Plant ............... 16 Figure 3. Map of the Dieng-2 Sub-project ................................................................................................... 23 Figure 4. Educational Attainment of Respondents ..................................................................................... 29 Figure 5. Educational Attainment of Affected Household Members ........................................................... 29 Figure 6. Primary Occupation of AH Members ........................................................................................... 30 Figure 7. Dependency Ratio of Ahs ............................................................................................................ 31 Figure 8. Combined Monthly Income of 28 AHs (based on combination of SES and IOL results (from

Appendix 9) ................................................................................................................................................. 32 Figure 9. Location of medical services in relation to AHs: .......................................................................... 33 Figure 10. Source of Water Supply for Drinking and Washing ................................................................... 33 Figure 11. Garbage Disposal Practices among the AHs ............................................................................ 34 Figure 12. AHs’ Views regarding the proposed Dieng-2 expansion sub-project ........................................ 34 Figure 13. Support for the Project ............................................................................................................... 36 Figure 14. How would you seek for clarification of submit complaints? ..................................................... 39 Figure 15. If you are still not satisfied, who will you approach for a solution? ............................................ 39 Figure 16. Land Acquisition Process for Pipeline and Inspection Road ROW ........................................... 46

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Figure 17. Grievance Redress Mechanism ................................................................................................. 58 Figure 18. Project Organisational Structure for Resettlement Plan Implementation .................................. 81

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DEFINITION OF TERMS

Affected persons (APs) / Community / Households (AHs)

Refers to any person or persons, customary or local community, private or public institution who are displaced (physical or economic) as result of temporary impacts during construction, restriction on land use or on access to legally designated parks and protected areas. The affected community/ households/person are those who utilize, control, or possess the affected land or non-land objects.

Compensation Payment in cash or in kind (e.g. land-for-land) to replace losses of land, housing, income and other assets caused by the Project. All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market value, and any transaction costs such as administrative charges, taxes, registration and titling costs. In the absence of functioning markets, a compensation structure is required that enables affected people to restore their livelihoods to level at least equivalent to those maintained at the time of dispossession, displacement, or restricted access.

Cut-off date Refers to the date prior to which the occupation or use of the project area makes residents/users of the same eligible to be categorized as AP, regardless of tenure status. In this project, the cut-off date will be the final day of the census of APs and the detailed measurement survey (DMS) of APs’ land and/or nonland assets. APs will be informed of the cut-off date for each project component, and any people who settle in the subproject area after the cut-off date will not be entitled to compensation and assistance under the project.

Displaced persons (DPs)

In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas (ADB IR Source Book, 2012).

Eligibility Refers to any person who has settled in the subproject area before the cut-off date who suffers from (i) loss of shelter, (ii) loss of assets (land, space above and below the surface of the land, buildings, plant, and objects related to the land) and/or or ability to access such assets, permanently or temporarily, or (iii) other losses that can be appraised. such as transaction costs, interest, loss of residual land, loss of income sources or livelihood regardless of relocation, profession shift, and other types of loss stated by the assignor, will be entitled to compensation and/or assistance).

Entitlement A range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc. which are due to the AHs, depending on the type and severity of their losses, to restore their economic and social base.

Income / Livelihood Restoration Program

This involves re-establishing productive livelihood of the displaced persons to enable income generation equal to or, if possible, better than that earned by the displaced persons before the resettlement (ADB IR Source Book, 2012). This is a program designed with various activities that aim to support affected persons to recover their income / livelihood to pre-subproject levels. The program is designed to address the specific needs of the affected persons based on the socioeconomic survey and consultations.

Inventory of loss The listing of assets as a preliminary record of affected or lost assets during the preparation of the RP/RP where all fixed assets (i.e., land used for residence, commerce, agriculture; dwelling units; stalls and shops; secondary structures, such as fences, tombs, wells; standing crops and trees with commercial value; etc.) and sources of income and livelihood

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inside the Subproject boundaries are identified, measured, their owners identified, their exact location pinpointed, and their replacement costs calculated. The severity of impact on the affected assets and the severity of impact on the livelihood and productive capacity of the APs are likewise determined

Involuntary Resettlement

Refers to physical and economic displacement as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Such displacement can be full or partial, permanent or temporary. Refers to displaced persons have no right to refuse the land acquisition by the state that results in their displacement. This occurs when land is acquired through (i) expropriation by invoking the eminent domain power of the state, or (ii) land is acquired through negotiated settlement when the pricing is negotiated in a process where expropriation will be the consequence of a failure in the negotiation. (ADB IR Source Book, 2012)

Land Acquisition The process where an individual, household, firm or private institution is compelled by an agency needing land for public interest to alienate all or part of the land it owns or possesses to the ownership and possession of that agency in return for compensation at replacement costs.

Land clearing While land acquisition (defined above) refers to land to be purchased and ownership surrendered by land owners to GDE, land clearing refers to GDE-owned land that needs to be vacated by land users (tenant farmers, or farmers cultivating GDE-owned land without permission) before it can be cleared for construction activities.

Meaningful consultation

A process that (i) begins early in the project preparation stage and is carried out on an on-going basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues

Negotiated Land Acquisition

The agency in need of land can carry out land acquisition directly with the respective owners through negotiation based on the result of appraisal by

an Appraiser or a Public Appraiser for the sake of efficiency. 1 Rehabilitation Assistance provided in cash or in kind to project APs (especially the

vulnerable) due to the loss of productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, to achieve, at a minimum, full restoration of living standards and quality of life.

Replacement cost The monetary value to replace affected assets and/or cover transaction costs necessary to replace the affected assets without depreciation for such assets as well as material advantage, taxes and/or travel expenses.

Resettlement Plan The social safeguard document that contains the policies and guidelines and time-bound action plan with budget, setting out the resettlement objectives and strategies, entitlements, activities and responsibilities, resettlement monitoring, and resettlement evaluation.

Severely affected persons

Those who experience significant/major impacts due to (i) losses of 10% or more of their total productive land, assets and/or income sources due to

1 Per Regulation No. 6 of 2015 of the National Land Agency (Peraturan Menteri Agraria dan Tata Ruang / Kepala

Badan Pertanahan Nasional Nomor 6 Tahun 2015 tentang Perubahan atas Peraturan Kepala Badan Pertanahan Nasional Nomor 5 Tahun 2012 tentang Petunjuk Teknis Pelaksanaan Pengadaan Tanah) paragraph 53, and Presidential Decree of the Republic of Indonesia Number 4 Year 2016 Concerning the Acceleration of Development of Electricity Infrastructures Article 34

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the project; and/or (ii) relocation due to insufficient remaining residential land to rebuild

Vulnerable groups Distinct groups of people who might suffer disproportionately or face the risk of being marginalized by the effects of resettlement and specifically include: (i) households headed by women, elderly, or disabled, (ii) households falling under the generally accepted indicator for poverty, (iii) landless households, and (iv) ethnic minorities.

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Executive Summary

1. Project Description. To support expanded geothermal electricity generation in Java the proposed Geothermal Power Development Project (GPGP) will result an additional 110 megawatts (MW) of geothermal electricity generating capacity, 55 MW2 at the existing geothermal plant in Patuha - Ciwidey, Bandung, West Java and 55 MW at the existing Dieng geothermal plant in Wonosobo and Banjarnegara Districts, Central Java.3 2. The Dieng Geothermal Expansion sub-project (Dieng-2) will include drilling of new wells for geothermal fluid production and re-injection, and development of a steam above ground gathering system and fluid reinjection lines connecting wells and generating units. Dieng will have a combined cycle plant with both steam and Organic Rankine Cycle turbines. The sub-project will also support the transmission interconnection systems between the plants and the grid; this will include a new, 6-km underground transmission line to the Dieng Sub-station. The GPGP will additionally strengthen GDE’s capacity to plan for, develop, and operate geothermal power plants and enhancement of GDE’s Community Development Program through more strategic engagement with the communities and evaluation of program. 3. Scope of the Resettlement Impacts. The RP will cover two sub-project components that will require land acquisition and land clearing, resulting in involuntary resettlement impacts. The expansion of the existing Dieng Geothermal Plant will require a total of 30.83 ha. Of this, 30.53 ha of land is already owned by PT Geo Dipa Energi (GDE) Dieng, while the remaining 3,010 m2 is privately owned land. This will be required for a 10 m wide and approximately 310 m long corridor to serve as the Right-of-Way (ROW) the construction of a new pipeline and access road from Wellpad 9 to the proposed site of the Dieng-2 power plant. 4. The inventory of loss (IOL) census carried out over 14–28 August 2019 documented approximately 4 ha of land owned by GDE earmarked for construction of the Dieng-2 power plant that has been leased to a farmer group4 . Most of the other GDE-owned land identified for construction of sub-project components are unencumbered except for 1 small plot of land (471 m2) in the new pipeline ROW,5 which is being cultivated by one farmer encroaching GDE’s land. Land acquisition and cessation of activities on land currently owned by GDE identified for Dieng-2 development will directly affect 106 persons (29 households) and indirectly affect 4 lease coordinators (21 persons). All AHs reside in the village of Karang Tengah, (Kecamatan Batur, Kabupaten Banjarnegara). No relocation will be required. However, many (24) of the affected households will experience severe impacts (i.e. lose 10% or more of access to productive land and/or income). 14 affected households are also categorized as vulnerable6. The data may change following the detailed measurement survey (DMS) based on the final engineering design. Project changes resulting in changes to resettlement impacts will be included in an updated RP. 5. Socio-economic Context in Dieng. Agriculture, particularly potato farming is the main source of income in the Dieng area, including in Karang Tengah Village. Farmers also plant

2 Capacity values in this document refer to net generating capacity 3 ADB. 2019. Proposed Loan and Administration of Technical Assistance Grant. PT Geodipa Energi: Geothermal Power

Generation Project) Guaranteed by the Republic of Indonesia). Project Concept Paper, February 2019. 4 Comprising 23 members and 4 coordinators. 5 Between Wellpad 10 and Wellpad 7 6 Affected vulnerable households are those classified as households headed by women, elderly, or disabled, (ii)

households falling under the generally accepted indicator for poverty, (iii) landless households, and (iv) ethnic minorities.

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temperate vegetables and some fruits (carica7 and terung belanda8). Potatoes were a boom crop between 1980 – 2000. Extensive and intensive potato farming practices have contributed to a high level of soil erosion and decline in soil fertility. Over the last 20 years, productivity has been declining and cost of production (agro-chemical inputs) increasing. Farmers are increasingly in debt. Weaker and less competitive farmers are losing their farms (sold to settle debt) and being forced into the labour market or migrating out of Dieng.

6. Socio-economic Profile of AHs. A socio-economic survey (SES) of 28 households potentially affected by the Dieng-2 sub-project was carried out over 22 - 23 April and 14 - 23 August 2019. Educational attainment between the two genders is similar. About 12.7% of AH members have not had a formal education, while about 53 % have completed primary education, and 28 % have completed secondary and vocational education. There are 3 university graduates among the AH members, two or whom are female. 11 out of 28 AHs are landless and 10 AHs own less than a quarter ha of productive land. Only 4 AHs own between 0.51 – 0.75 ha of land, while one AH owns more than 5 ha of productive land. Four out of 17 landed AHs possess land certificates. All 6 landowners whose lands to be acquired by the project have “Letter C” village-level documentation of land ownerhip. AHs’ monthly incomes range from Rp. 500,000 – Rp. 19.5 million. One AH has a monthly household income of approximately Rp. 200 million while another is in debt due to 2 consecutive failed harvests. Four wives of AHs were documented as having their own sources of income and contributing to household income. The women’s monthly income ranged from Rp. 120,000 – Rp. 3 million. Two earned incomes by working as farm labour, one earned income from a home industry, and one ran a small fertilizer business. 7. While Dieng Kulon and some other locations are benefiting from the growth of the tourism industry, the sector is not as popular in Karang Tengah Village. In general, heads of households and their wives are only familiar with potato and vegetable farming, and not keen to adopt alternative livelihood activities. The younger AH members are more open to new activities. The main source of water for consumption and other needs are water bodies (Telaga Merdada, Telaga Siterus, Telaga Pawuhan) and mountain springs (Gunung Prau). All households are connected to electricity supply. Most AHs use gas for cooking although there are still 5 AHs who use firewood. All homes have bathrooms and basic toilet facilities. Garbage disposal is a problem in Karang Tengah Village. 8. Gender Issues and Vulnerability. The gender strategy has been included in the RP. Women have been and will be involved in the consultations. Socio economic survey considers gender and women will be included in the GRM committee. One of four FGDs consulting AHs regarding income restoration strategy preferences was designated exclusively for women, while the FGD conducted for youth also included women. Among the 28 AHs, 4 are deemed elderly (have difficulty with daily work because of old age) and 11 are landless. Four of the AHs are considered poor. In total, 14 AHs (47 APs) are vulnerable. There is no female headed households or widows among the 28 AHs. None of the AHs are disabled. All AHs are Javanese; there are no customary minorities. When vulnerability data is combined with potentially severe impacts, all 14 of the vulnerable households are also potentially vulnerable to severe impacts and at risk of impoverishment. Special attention will be given to them, as well as others who may be potentially severely affected to ensure that they are able to continue their current potato farming-based livelihoods and maintain, if not improve their current levels of income.

7 A genus (the type of the family Caricaceae) of chiefly tropical American trees that includes the papaya (Merriam-

Webster dictionary) 8 Batavica eggplant (on-line Indonesian-Latin translation).

https://www.merriam-webster.com/dictionary/Caricaceae#medicalDictionary

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9. AHs’ Perception of the proposed Dieng-2 sub-project. While many AHs did not have comments, more AHs feel that the sub-project will results in negative impacts (12/28) rather than benefits (6/28). More AHs do not support the sub-project (17/28) compared to those who do (7/28). The reasons given were: (i) loss of income (9/28); (ii) proposed power plant proximity to the residental area (7/28); (iii) perceived damage to homes (roofs) and crops (fear recurrence of previous incident (4/28).

10. Communications and Complaints. AHs preferred project communications to be conducted at village meetings (14/28),or conveyed via the Village Head and/or religious leaders (11/28). With respect to complaints, 14/28 AHs said that they would seek information or submit complaints to the village head, or via the lease coordinators (11/28) or deliver directly to Geodipa Dieng (2). AHs are more familiar with communicating their queries or complaints verbally. If they were to be dissatisfied with how their complaints have been handled, they will follow-up through the lease coordinator (11/28) or Village Head (7/28). 11. Consultation and Disclosure. A series of consultations has been conducted for the preparation of the RP. The first consultations with the APs, affected communities and stakeholders (local NGOs, Kabupaten agency representatves) were held in March 2019 at village offices. A total of 209 persons (163 men, 46 women) participated in the consultations. Consultations continued during the IOL and SES when focus group discussions (FGDs) were conducted with 77 persons (49 men, 28 women) to assess and discuss the resettlement impacts and possible income and livelihood restoration programs to mitigate the impacts (loss of land, loss of arable land). The second set of community consultations was held over 11-13 September 2019 at village offices. 178 participants (126 man, 52 women) attended the consultations. The consultations were to seek feedback on the assesment findings and proposed mitigation measures. The consultations will continue during the project implementation. A meaningful consultation plan has been prepared to ensure participation of APs and stakeholders at project planning, implementation, and monitoring. Participation of women and vulnerable groups will be ensured. A summary of the RP and any updated RP in the form of a Project Information Booklet or leaflets in Bahasa Indonesia will be distributed to the APs and made available at the GDE Dieng Office. 12. Grievance Redress Mechanism. A grievance mechanism has been established to receive, investigate and respond in timely manner to any complaints or grievances raised by APs. A Grievance Focal Person will be designated at the Dieng Unit office to manage the GRM. GDE has already discussed the GRM during the consultations (sosialisasi) with the APs and will disclose the information through distribution of leaflets. 13. Legal Framework. This Resettlement Plan (RP) was prepared in accordance with Government of Indonesia (GOI) laws, regulations and policies related to land acquisition and involuntary resettlement, Relevant Standard Operating Procedures of PT Geo Dipa Energi (GDE) as well as the Involuntary Resettlement of Safeguard Policy Statement of ADB (SPS 2009). The main legal framework used as the reference for land acquisition and involuntary resettlement includes: (i) Law No. 2/2012 on Land Acquisition for Development in the Public Interest and its implementing regulations, (ii) Presidential Regulation No. 62/2018 concerning Handling Social Impact for Providing Land for National Development Projects; and (iii) ADB SPS 2009. The objectives of the Project resettlement policy are to avoid, or minimize if avoidane is not possible), involuntary resettlement impacts, mitigate and compensate adverse impacts, restore livelihoods, and improve the living standards of the vulnerable households. As per government regulation, acquisition of land for the construction of the new pipeline and access road will be undertaken either through negotiated land acquisition or direct purchase.

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14. Entitlements and Compensation. Landowners will be entitled to compensation based independent appraisal by the Office of Public Appraisal (KJPP - Kantor Jasa Pinalai Publik) and negotiations. Land users (croppers) will be entitled to get cash compensation for loss of crops income equivalent to a minumum of one year of net product market value based on independent appraisal by the KJPP. Both landowners and land users will be provided with 3 months advance notice prior to vacating the land to be acquired or cleared. Landowners and land users will be allowed to harvest their last crop before vacating the land.

15. Income and Livelihood Restoration Programs. Income and livelihood restoration will be provided to severely APs and vulnerable APs to ensure their living standard will not be worse off due to the project. The Inventory of Losses (IOL) and Social-Economic Survey (SES) found that there are 24 potentially severely affected households (86 persons) and 14 vulnerable households 9 (47 persons). The programs include opportunity of employment during construction, vocational training, and scholarships, procurement of equipment and materials, and capacity building for the improvement of their current micro-enterprises / businesses. The activities will be implemented over a period of three years after compensation payment and during construction and will be monitored and reported on bi-annually to ensure effective restoration of livelihoods and program sustainability. The income and livelihood restoration program will also be expanded to the APs affected temporarily during construction and residents living near to project areas as project benefits. Approximately 134 households will participate in the program. The Livelihood Restoration Assessment also recommended some activities to reorient the Community Development (ComDev) program so as to be more strategic and responsive to the political-economic dynamics and existing livelihood security challenges within the Dieng economy. 16. Resettlement Budget and Financing Plan. A budget of IDR 21,351 billion (approximately US$ 1,503,592) has been estimated for land acquisition and involuntary resettlement as well as a reoriented Community Development program. The budget includes: (i) costs for compensation, (ii) income and livelihood restoration, (iii) ComDev reorientation program, (iv) monitoring, (v) administrative costs. A 10% contingency margin was included. GDE will ensure timely funds disbursement and will prepare all the necessary plans. 17. Institutional Arrangements. GDE is the Executing Agency of the project, responsible for overall coordination, policy directions, and administration, including those related to land acquisistion and involuntary resettlement safeguard. A Project Management Unit (PMU) has been established to manage the GPGP. The PMU will have a Government Relation and Social Safeguards Assitant Manager responsible for social safeguards monitoring and compliance, support for land acquisition activities (in coordination with general affairs (GA) division), and programiing and budgeting livelihood restoration and ComDev activities in coordination with Corporate Secretariat (CORSEC). At the GDE Dieng Unit level, the Social Safeguards and PR supervisors will be responsible for supporting land acquisition and involuntary resettlement activities and social safeguards compliance. Social safeguard consultants under the Project Management Consultant will support the PMU in managing and monitoring social safeguards. 18. Implementation Schedule. Land clearing activities (on GDE-owned land) will commence in November 2019 and be completed by February 2020. Land acquisition activities will commence in January 2020 and be completed by end of October 2020. A Land Acquisition Team (LAT) will be established by January 2020. Land compensation negotiations are expected by July – August

9 All vulnerable households will also be potentially severely affected.

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2020. The implementation of livelihood restoration activities will commence in FY 2020. Land clearing activities are expected to commence by the first quarter of 2020. The Dieng-2 power plant and pipeline construction will commence in the first quarter of 2021 and will be commissioned by the third quarter of 2023. 19. Monitoring and Reporting. Internal monitoring will be undertaken by the PMU, assisted by the PMC, throughout the land acquisition and involuntary resettlement process. Semi-annual monitoring reports will be prepared during project implementation to report the progress of all activities in the RP, including those related to land acquisition and involuntary resettlement. An indepdent monitoring agency will be engaged by PMU to carry out land acquisition and resettlement external monitoring and post- implementation evaluation.

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I. Introduction

A. Background

1. The Republic of Indonesia has the world’s largest geothermal potential, estimated at 29,000 MW. Since the issuance of the Geothermal Law in 2003, the Government of Indonesia (GOI) has prioritized development of this resource. As of January 2019, the installed capacity of geothermal energy in Indonesia was 1,948.5 MW (6.72 % of total potential). In the RUPTL10, the government plans for an additional 4,443 MW of installed geothermal capacity by 2027.11 The government also intends for state-owned enterprises, such as PT PLN (Perusahaan Listrik Negara – State Electricity Company) and PT Geo Dipa Energi, to play an important role for sustaining geothermal growth in the near term. 2. PT Geo Dipa Energi (GDE) is a state-owned geothermal company focused on exploration and development of geothermal resources. GDE currently operates a 55 MW power plant at Dieng in Central Java which was transferred to GDE after commissioning and after drilling. In the near term, GDE plans to commission an additional unit at Dieng, which is proposed to be financed under the Geothermal Power Generation Project (GPGP) (Project). 3. The Asian Development Bank (ADB) will provide a loan to GDE to support expanded geothermal electricity generation in Java to increase renewable energy baseload and reduce Indonesia’s reliance on coal. The proposed GPGP will provide financing for expanding geothermal power generation via the Dieng-2 sub-project – expansion of geothermal electric generating capacity by 55 MW at the existing Dieng Geothermal Plant.

B. Sub-Project Description

4. The Sub-project will construct a new power plant, sub-station, transmission lines and pipelines. No new well pads will be added, but 10 new wells 12 will be drilled on existing wellpads. Table 1 provides a list of Dieng-2 components to be added to the existing Dieng-1 Geothermal Plant facilities. The sub-project will include (a) drilling of new wells for geothermal fluid production and re-injection, (b) construction of fluid collection and re-injection systems, (c) power plant, and (d) transmission inter-connection systems. strengthen GDE’s capacity to plan for, develop, and operate geothermal power plants and enhancement of GDE’s Community Development Program through more strategic engagement with the communities and evaluation of program. 5. The Dieng sub-project faces technical challenges and high-density of farming activities at the Dieng reservoir location. As part of ADB’s assistance, the project will enhance health, safety, emergency planning, and livelihood opportunities for nearby communities. The Dieng-2 sub-project will not use any forest land except for laying of the proposed underground transmission line which will pass under an existing pipeline and inspection road right-of-way (ROW) through protection forest, for which PT Geo Dipa already has a permit (IPPKH). These activities will serve as an example for how Indonesia’s geothermal resource in similar geographic contexts can be developed without detriment to the existing surroundings.

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

2027). 11 An increase of 15.32 % vis a vis total potential. 12 4 production wells, 5 injection well and 1 contingency well

16

6. Figure 1 provides a map of the location and- layout of the proposed Dieng-2 expansion components recommended by the Dieng and Patuha Feasibility Study approved by the GDE Board of Directors per August 2019). Figure 1. Proposed Dieng Geothermal Plant Expansion Components – Power Plant, new wells (in existing wellpads), SAGS (new pipeline alignment within existing pipeline and inspection roads

ROW)

7. Figure 2 provides a Google Earth map overlaid with the underground transmission line alignment route recommended by the subsequent Transmission Line Feasibility Study of September 2019.

Figure 2. Adjusted Transmission Line Route From Dieng 1 Substation to Dieng 2 Power Plant

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II. Scope of Land Acquisition and Resettlement

A. Land Requirements

8. Approximately 308,289 m2 (30.8 ha) of land will be required for the Dieng-2 sub-project. Of this, 305,279 m2 is already owned by GDE and 3,010 m2 privately owned land will be acquired. Table 1 below provides the land acquisition needs for the Dieng-2 sub-project. Land required for the power plant site (Dieng 2) and all 5 well-pads in which 10 new wells will be drilled is already owned by GDE. So is most of the land required for constructing new pipelines and an access road. Approximately 3,010 m2 of additional (privately-owned) land will need to be acquired for a new pipeline and inspection road ROW connecting Wellpad 9 to the Dieng-2 power plant site.

A. Due Diligence concerning land owned / leased by Geo Dipa

9. Of the 30.83 ha of land required for the Dieng-2 expansion sub-project, 99 % is already owned by GDE. The status of land certification for the above land is provided in Appendix 1. However, the certification process has not been completed for all parcels of land owned or leased by GDE.

(i) Out of 45 pieces of land with separate titles, certificates for 20 pieces of land are still being processed. GDE General Affairs Division estimates that the certification process in the case of 16 parcels of land will be completed by the end of 2019.

18

(ii) The certification process for the remaining 4 pieces of land is expected to be completed by end 2020. (These 4 certificates relate to Wellpad 10, a segment of the ROW between Wellpad 30 and 31, and a segment of the ROW under which the underground transmission lines will pass.

(iii) All certificates of GDE land use rights (HGB) status is valid until between 2034 – 2048. However, there is one HGB certificate which is valid until 2024. This certificate is for a segment of existing ROW in the Sikunang area through which the underground transmission lines will pass.

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Table 1. Project Components and Land Requirements for the Proposed Dieng Geothermal Power Plant Expansion

NO INFRASTRUCTURE

COMPONENT

LOCATION OWNER OF LAND

REQUIRED AREA # IR IMPACTS (YES/NO)

LOCATION

WELL VILLAGE LENGTH

(M) WIDTH

(M) AREA (M2)

1 Power Plant (Dieng-2)

Well 38 Karang Tengah

GDE +.58,479*

Yes 23 AHs (land users)

2 Underground Transmission Line

4 villages - Karang Tengah,

Dieng Kulon, Bakal and Sikunang13

GDE + 6,000 2 + 12,000 No Area required will be existing pipeline ROW owned by GDE. The TL will across provincial road

GDE No Under existing inspection road and pipeline and inspection road ROW.

Near sub-station

Sikunang Min. of Forestry

No

3 Sub-station Sikunang GDE No Will use existing Dieng 1

4 Well pads Pad7 SLR-7D Karang Tengah

GDE ±13,900 No

Pad9 SLR-9C,

9D, 9E, 9F

Karang Tengah

GDE ±8,500 No

Pad10 HCE-

10A Kepakisan GDE ±22,100 No

Reactivation of old well. Loc-O SLR-

30B Karang Tengah

GDE ±30,200 No

Loc-Q SLR-

31A, 31B

Karang Tengah

GDE ±41,100 No

5 Pipeline & access road

Pad10 to Pad 7

Kepakisan 14 / Karang Tengah

GDE

±34,000 No GDE ROW split by Village Road – 4 m wide on either side of existing road.

13 Desa Karang Tengah, Dieng Kulon, and Bakal are located in Kecamatan Batur, Kabupaten Banjarnegara, whereas Desa Sikunang is in Kecamatan Kejajar,

Kabupaten Wonosobo. 14 Desa Kepakisan is in Kecamatan Batur, Kabupaten Banjarnegara.

20

NO INFRASTRUCTURE

COMPONENT

LOCATION OWNER OF LAND

REQUIRED AREA # IR IMPACTS (YES/NO)

LOCATION

WELL VILLAGE LENGTH

(M) WIDTH

(M) AREA (M2)

Pad 7 to

Pad 9 Karang

Tengah GDE ±25,900 No

COI = existing ROW 12 m,

Pad 9 to Dieng-2 PP

Karang Tengah

Private 10 +3,010 * Yes Land acquisition required (6 landowners).

Triple

junction to pad Q

Karang Tengah

GDE ±28,100 No COI = existing ROW 12 m

Loc-Q to

Loc-O Karang

Tengah GDE ±31,000 No

COI = existing ROW 12 m

TOTAL + 308.289

Notes: # Breakdown – owned by GDE (±305,279 m2 of which the TL will be under 12,000 m2 - 6 km long, 2 m wide), privately owned (3,010 m2) * Based on field

survey by IOL team (16 Aug. 2019)

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10. Protected Forest Land Lease. Some of the GDE-owned land is located in protected forest (hutan lindung) (see details in Table 1 and Appendix 1). Based on the documentation in Appendix 1, only 3 parcels out of the above-mentioned 45 parcels of land are in protected forest area. The necessary permits (IPPKHs) were obtained for all three parcels in 2013; the permits are valid until 2037.

11. Encroachment of ROW as a result of Road Upgrading. The field investigation of the status of existing pipeline and inspection road ROWs to be used for installation of new pipelines conducted over 5-6 August 2019 found that in GDE does not own an intact ROW between Wellpad 10 and Wellpad 7. Before land for the ROW was acquired, a 4 m wide village road existed leading past Wellpad 10. GDE acquired 4 m of land on either side of the village road which serves as the ROW. However, the road is in the process of being widened to 6 m wide provincial road status. The road widening has encroached on the GDE ROW. GDE will write to the Provincial Public Works Department (Bina Marga, Dinas PU Propinsi Jawa Tengah) to take remedial action.

12. Underground Transmission Line crosses the Provincial Road. The proposed transmission line (per Figure 2) exits the proposed Dieng-2 power plant site and crosses the provincial road to join the proposed new pipeline and access road ROW between the power plant and Wellpad 9. From this point, the transmission line will be laid under the existing GDE owned ROW all the way to the sub-station. Laying of the underground transmission line along new and existing ROW to the existing sub-station will involve digging / laying of underground cables across the provincial road. This will cause temporary inconvenience to traffic (1-2 weeks). GDE will communicate with the Provincial Public Works (Bina Marga) in order to obtain the permit for the crossing and provide a temporary solution.

13. GDE owned Land Rented to a Tenant Farmer. Approximately 4 ha of the 5.7 ha “Mess GDE” site earmarked for construction of the Dieng-2 Power Plant is currently being leased by KODIPA (GDE’s cooperative) to a farmers group (Kelompok Sadar Alam dan Tani Merdada Sejahtera) via the groups’s head coordinator15 . The lease is renewed on an annual basis. Appendix 2 presents a copy of the current lease (and receipt) for period 2018-2019, valid until October 2019.

B. Inventory of Losses (IOL)

14. Methodology. The IOL was conducted over 22-23 April and 14–28 August 2019. The first stage of the IOL was carried out in 22–23 April 2019 at the site commonly referred to as “mess GDE” which was already fixed as the site for the Dieng-2 power plant. The land is approximately 5.7 ha in size. There are some buildings on the land owned by GDE and no people use these buildings. The IOL was based on a mapping conducted with some of the tenant farmers and coordinators followed by interviews with the 23 tenant farmers.16 The data derived from the (IOL) may need to be updated through detailed measurement survey (DMS) following the final engineering design and corridor of impacts carried out at the implementation stage of land acquisition.

15. Following the final Feasibility Study (FS) results officially released on 8 August 2019, the second stage of the IOL was conducted over 14–28 August 2019 and covered the following:

15 There are 4 coordinators. 16 The interviews were conducted at the house of the head of the 4 coordinators.

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(i) Mapping of all existing GDE land components where Dieng-2 sub-project components would be constructed. (See Figure 1 and Table 1.) This included:

a. Wellpads 10, 7, 9, 30 and 31; b. existing pipeline and inspection road right-of-way (ROW) connecting the above

wellpads to the proposed Dieng-2 power plant; c. the Dieng-2 Power Plant site itself; and d. Underground transmission line route from the Dieng-2 power plant site, along new

and existing pipeline and inspection road ROWs all to way to the existing sub-station (approximately 6 km).

The purpose of this exercise was to ensure that there was sufficient space for positioning of proposed Dieng-2 components.

(ii) Measurement and mapping of the only land to be acquired – a 3,010 m2 corridor between Wellpad 9 and the proposed site of the Dieng-2 power plant.

(iii) Confirmation of measurements and mapping of GDE land leased to 23 tenant farmers. Identification of landowners and land-users (tenant farmers/renters, croppers), and IOL of all affected crops in the 3,010 m2 corridor to be acquired. Appendix 3 provides the format of the IOL questionnaire.

C. Scope of Impacts

16. Existing GDE-owned land that will be used for the Dieng-2 sub-project. The IOL produced a set of maps of existing GDE-owned land that will be used for the Dieng-2 sub-project.17 Figure 3 presents an alignment map for sub-project components overlaid on a google earth photo produced by the IOL survey. The IOL indicates that the existing ROW of pipe lines is sufficient for the construction of the new pipelines for Dieng 2 sub project. 17. Loss of Private Land. A total of 3,010 m2 of land owned by 6 AHs (27 APs) to be acquired for the construction of a new pipeline and access road ROW. It consists of 6 land plots with legal land rights (Letter C). The land is in Karang Tengah Village. All landowners are residents of Karang Tengah Village. Appendix 4 presents a map of the 6 land plots. While the village records were not sighed by the IOL team, the Village Head provided an affidavit confirming land ownership status of the 6 plots of land (See Appendix 5). The land is productive land cultivated under potatoes and temperate vegetables (cabbage, carrots, and leeks). Based on consultations with the landowners on 23 August 2019, landowners asked for time to decide whether they would be willing to sell their land. GDE Dieng Unit staff/ GDE LAT will follow-up to obtain their answer (in principle). If the landowners decide against selling, or if they are agreeable but negotiations are not successful, the route of the corridor will be adjusted.

18. Loss of Arable Land use by tenant famers. A total of 5.7 ha GDE-owned land (ex Mess GDE site) will be cleared for the project. This site is located in Karang Tengah Village. This will affect the Kelompok Sadar Alam dan Tani Merdada Sejahtera farmer group which comprises 23

17 The maps include; (i) overall alignment map; (ii) an index map; (iii) a set of 18 maps of existing pipeline and access/

inspection road ROWs; (iv) maps of 5 wellpads (7, 9, 10, 30 and 30 and 31); (v) map of proposed land acquisition corridor between Wellpad 9 and the proposed Dieng-2 power plant site; (vi) map of the proposed Dieng-2 power plant site (ex Mess GDE) showing plots of each of the 23 tenant farmers; (vii) map of area encroached by one cropper.

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tenant farmers (85 household members or APs),18 all of whom reside in Karang Tengah Village. Appendix 6 presents a lay-out map of the individual plots of land leased to 23 tenant farmers (land users or croppers). A list of the size of plots leased by each tenant farmer is provided in Appendix 7. 19. There is one land user (penggarap) cultivating GDE-owned land between Wellpad 10 to Wellpad 7. Appendix 8 provides a map on approximately 471 m2 of land the land user has occupied.19 . A total number of 29 households comprising 103 people (household members) 20 will be potentially affected by land acquisition and land clearing activities (see Table 2).

Figure 3. Map of the Dieng-2 Sub-project

18 One of the tenant farmers is also one of the landowners of land to be acquired for the construction of a new pipeline

and access road ROW. His household consists of 6 persons. His household members have been counted under his category as landowner.

19 The cropper was not available (he was out of the country performing the Hajj) when the IOL and SES was carried out The Village Head requested the survey team not to approach his wife but to wait until he had returned before interviewing him. No household data was collected. However, the team was informed that he was prosperous (not vulnerable, and not potentially severely affected).

20 Excluding the cropper who was not covered by SES.

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Table 2. Potential number of households affected by land acquisition and land clearingTable 21

Sub-Project Component

Land Ownership

Status

No. Of Households Affected By

Land Acquisition / Land Clearing

Notes

New wells to be drilled in existing Wellpads 10, 7, 9, 30 and 31

GDE None

The well sites are already clear. Well drilling with a drilling rig will use water-based material. There will be well testing The IOL found none will be affected by the sub-project. There are 5 croppers using GDEs land near Wellpad 31 (Loc Q), but they are outside of the corridor of impacts.

New pipelines to be installed / constructed in existing pipeline and inspection road ROWs between wellpads

GDE 1 AH

1 cropper on GDE land The ROW for most of the existing pipelines and inspection roads are 12 m or more in width. They are well maintained. There will be no need for land clearing in the case of most of the ROWs, except for the ROW from Wellpad 10 to Wellpad 7 that will affect approximately 471 m2 of land cultivated with potatoes/vegetables by 1 AH. The cropper has assured GDE Dieng that he will vacate the land when GDE wants to use it

New pipeline and inspection road from Wellpad 9 to Dieng -2 power plant site

Privately owned

6 land owners

A corridor of land (3,010 m2) will be acquired as the ROW for a new pipeline and inspection road connecting Wellpad 9 to the Dieng-2 power plant site. Land will be cleared after ownership of the land has been relinquished by the landowners in favor of GDE Dieng.

New underground transmission line route from Dieng-2 power plant site to existing sub-station

GDE None identified

The transmission line will exit the proposed Dieng-2 Power Plant site and cross a provincial road before joining a new GDE owned corridor / new pipeline and inspection road ROW (to be acquired).

Dieng-2 Power Plant site (Mess GDE)

GDE

23 tenant farmers (one of whom is one of the above

land owners);

About 4 ha of the site has been leased on an annual basis to a farmers’ group -Kelompok Sadar Alam dan Tani “Merdada Sejahtera” over the last 20 years. 23 tenant farmers will lose access to productive arable land which they have been leasing for between 10-20 years. 22 of the tenants farmers will be severely affected. 14 of these farmers are also considered vulnerable.

21 While land acquisition refers to land to be purchased and ownership surrendered by land owners to GDE, land

clearing refers to GDE-owned land that needs to be vacated by land users (tenant famers, or farmers cultivating GDE-owned land without permission) before it can be cleared for construction activities

25

Sub-Project Component

Land Ownership

Status

No. Of Households Affected By

Land Acquisition / Land Clearing

Notes

4 co-ordinators of the farmer group.

The current land lease between the KODIPA (GDE Cooperative) and the head of the 4 coordinators on behalf the farmer group (Kelompok Sadar Alam dan Tani Merdada Sejahtera) will expire in October 2019. KODIPA will not extend the lease. However, GDE/KODIPA will allow the farmer group to continue using the land until end of January 2020, The land is scheduled to be cleared in Feburary 2020, and construction activities are scheduled to commence by March 2020. The coordinators themselves do not cultivate any of the GDE land. They are not vulnerable. GDE will provide employment opportunity to the coordinators and acces to livelihood restoration programs.

20. Loss of cultivated seasonal Crops (vegetables). All farmers were cultivating potatoes and vegetables during the period of the IOL. There is 43,735 m2 of crop land that will be needed for the project (mostly potatoes), of which 40,725 m2 is owned by 23 tenant farmers and sharecroppers using GDE’s land and 3,010 m2 of which is privately owned by 6 different people. GDE agreed to give 4-6 months’ notice before land ownership has to be relinquished to GDE and will allow all landowners and land users to harvest their crops before handing over. 21. Loss of Structure. No structures will be affected. 22. Severely Affected Households. The IOL found that a total of 24 AHs (86 APs) will potentially be severely affected by the sub-project consisting of 22 severely AHs due to land clearing and 2 severely AHs due to land acquisition. Detailed data on severity is outlined in the Table 3 below.

Table 3. Severely Affected Households

STATUS No. of AHs

Will potentially lose 10 – 25 % of productive land or total income 4



Will potentially lose 76 – 100% of productive land or total income 9

TOTAL 24

23. Vulnerable Households. Out of 28 affected households who were coverd by the SES, there are 14 households (comprising 47 household members) who are considered vulnerable. All 14 vulnerable households belong to the group of 23 tenant farmers (who would be affected by land clearing). None of 6 landowners (to be affected by land acquisition) is considered vulnerable. Among 14 vulnerable households, 4 households (14.3 %) are considered poor (based on Kabupaten Banjarnegara’s poverty line of Rp. 278,210 per capita / month for 2017), 4 households (14.3%) are elderly (not able to cope with daily work due to old age) and 14 households (50%) are landless. These categories are not mutually exclusive. See Table 4. There are no female-

26

headed households or widows among the 28 AHs. None of the AHs are disabled. All AHs are ethnically Javanese; there are no ethnic minorities.

Table 4. Vulnerable Affected Households

Type / Combination Of Vulnerability Categories

No. of Tenant Farmer AHs (APs)

No. of Land Owning AHs (APs)

Total no. of AHs (APs)

Poor 2 (9) 0 2 (9)

Poor* and landless 2 (9) 0 2 (9)

Elderly 1 (2) 0 1 (2)

Elderly and landless 3 (7) 0 3 (7)

Landless 6 (20) 0 6 (20)

Total 14 (47) 0** 14 (47)

* Based on Kabupaten Banjarnegara poverty line of Rp. 278.210 per capita/month 2017) ** However, there are 2 land owning AHs with 8 household members (potentially affected by land acquisition) who could be considered severely affected.

24. Appendix 9 combines severity of impacts and vulnerability data. 24 out of 28 AHs (85.7%) are severely affected and/or vulnerable. All 14 of the vulnerable households are also potentially vulnerable to severe impacts and at risk of impoverishment. Special attention should be given to them, as well as others who may be potentially severely affected. A summary of impacts due to land acquisition and land clearing is provided in Table 5.

Table 5. Summary of Impacts due to Land Acquisition and Land Clearing

Total land Requirements

Land owned by GDE 305,279 m2 (or 30.53 ha)22

Privately owned land 3,010 m2

Sub-Total 308,289 m2

Total amount of affected crops (only seasonal crops will be affected)

Predominantly potatoes with some temperate vegetables 43,735 m 2

▪ crops cultivated by land owners 3,010 m2

▪ crops culitaveted by land users 40,725 m 2

Total number of people affected

Number of affected land owners 5 households: 21 persons (HH members)

Number of land owners and also land users (tenant farmers) 1 household: 6 persons (HH members)

Number of affected land users 23 households: 79 persons (HH members)

Lease coordinator (indirect impact) 4 households: 21 persons (HH members)

Total number of severely affected people (lose >10% of productive land or >10% of income source)

24 households: 86 persons (HH members)

Total number of vulnerable people 14 households: 47 persons (HH members)

▪ Number of poor households 23 2 HH: 9 persons (HH membes)

▪ Number of poor and landless households. 2 HH: (9 household members)

▪ Number of elderly headed households (cannot cope with daily work). 24

1 HH: (2 household members)

▪ Number of elderly and landless households 3 HH: (7 household members)

▪ Number of landless households 25 6 HH: (20 household members)

No. of other forms of income activities affected

No. of small businesses (kiosks, warung etc.) and other forms of income generating activities affected.

-

22 Of which approximately 6 ha is existing pipeline and inspection road ROW under which the TL cable will be buried. 23 Per capita income/month below Kab. Banjarnegara poverty line for Rp. 278,210 for 2017. 24 Total no. of elderly households is 4 of whom 3 HH are also landless. 25 Total no. of landless househodls is 14 of whom 3 are also poor, and 3 are also elderly.

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III. SOCIO-ECONOMIC PROFILE AND PERCEPTIONS OF AFFECTED PEOPLE 25. This section presents a summary of the socio-economic information of the area and people who will be potentially affected by the land acquisition and land clearing process. General demographic data is presented for the Village of Karang Tengah. More detailed information was gathered from a census of the impacted landowners and users of acquired land, as well as a group of farmers currently leasing GDE land.

A. Profile of Karang Tengah Appendix 10 presents a description of Karang Tengah Village. Table 6 provides a summary profile.

Table 6. Profile of Karang Tengah Village

VILLAGE STATISTICS

Size of Village territory (wilayah desa) 488,811 Ha Elevation above sea level 2,081 m Average daily temperature

15◦ C

Land Use:

▪ Dry land agriculture 250,831 Ha (51.3 %) ▪ Settlements 190,402 Ha (39 %) ▪ Home Gardens 2,331 Ha (0.5 %) ▪ Water bodies 20 Ha ▪ Village land (for cash) 28,138 Ha (5.8 %) ▪ Public Facilities 6 Ha ▪ Forest 9 Ha ▪ Total (488,811 Ha)

Number of Village Govt. personnel 11 Number of hamlets (dusun) 3 Number of tourist attractions (obyek wisata) 1 Number of homestays 5 Total population 4,992 people Breakdown by gender 2,513 male,

2,479 female Total number of households 1.400 HH Number of people within productive age bracket (19 – 55 years of age)

56 %

Dependency ratio 26 48.8% Proportion of education who have completed schooling / education

65.9 %

▪ proportion who have completed primary education only (SD)

52 %

▪ proportion who have completed lower secondary school (SLTP)

7.8 %

▪ proportion who have completed upper secondary school (SLTA)

5 %

▪ Diploma IV (Strata I) (35 people) 0.7 % ▪ Diploma I / II (11 people) 0.22 % ▪ Academy / Diploma III / Graduate (Sarjana Muda) (37 people) 0.74 % ▪ Did not complete basic education (primary school) 22 % ▪ No formal education / not yet of school going age 11.4 %

26 (Population within 0-12 years age brackets + population 55 years and above) / (Population within 13 – 55 years of

age brackets) x 100% (based on available data)

28

VILLAGE STATISTICS Main sectors of Economy / Income

▪ Agriculture (food / seasonal crops) Rp. 10,000,000,000 (99.55% ) ▪ Agriculture (estate crops) Rp. 5,000,000

(0.05 %) ▪ Trade Rp. 31,200,000

(0.31%) ▪ Services Rp. 6,000,000

(0.06 %) ▪ Home-stay Rp. 3,000,000

(0.03 %) Number of Ojek (motorcycle taxis) in village 17 Welfare

▪ Well off (Sejahtera 3+) n/a ▪ Poor (Pra-sejahtera) 305 HH ▪ Poor (Pra-sejahtera 1) 150 HH ▪ Very Poor (Pra-sejahtera 2) 153 HH ▪ Very Poor (Pra-sejahtera 3) n/a

Types of social organisations present – women’s groups, youth, professional. men’s group, LP3M, Self-help groups, Traditional groups

Women’s Organization’s (PKK) Programs – active

B. Summary of Socio-economic Survey Findings

26. The Socio-economic (SES) was conducted for all 28 AHs27, and in accordance with the

gender strategy - 14 of affected heads of households (male), and 14 female AH members (50%, all wives of household heads) were interviewed. Each AH was represented by one respondent. This chapter presents a concise version of SES results. SES instruments are provided in Appendix 10. SES methodology and all gender-disaggregated tables of data are provided in Appendix 11. 27. Education. Educational attainment of 28 respondents is presented in Figure 4. Educational attainment of the wives is relatively higher than that of husbands. The majority (53.6%) have basic (elementary – SD) level education, and 25% have completed upper secondary education (or senior high school - SLTP).

27 The survey was a census of all affected households.

29

Figure 4. Educational Attainment of Respondents

28. Education attainment of 95 AH members is presented in Table 5. 52.6% of affected household members have basic or elementary school education (SD). Some 27.4% have secondary (junior and senior high school) education. There are 2 non-degree holders and 3 degree holders among AH members. Of the 3 University degree holders, 2 are female.

Figure 5. Educational Attainment of Affected Household Members

Note * Information was not collected (answers not provided) in the case of 11 AH members

7.1

35.7

3.6 3.6

7.1

17.9

3.6

21.4

0

10

20

30

40

50

Never attended school Primary or ElementarySchool

Lower Secondary School Upper Secondary School

Pe

rce

nta

ge (

%)

Male Female

6.5

34.4

7.5

3.2 2.2 1.1 1.1

6.5

17.2

6.5

10.8

0 1.1 2.2

0

10

20

30

40

50

Neverattended

school

Primary orElementary

School

LowerSecondary

School

UpperSecondary

School

VocationalSchool

Non-degree University

Pe

rce

nta

ge (

%)

Male Female

30

29. Economic Profile. Figure 6 presents the primary occupation of household members. Based on the figures for responses from both men and women respondents, it would appear that there are more male household members (51) than female household members (39). Of the 90 APs whose data was collected, 58 (64.4%) are farmers, and 18 (20%) are still attending school. There was only 1 trader (who was a woman). One woman (wife) was documented as a farm worker. Four people said they were retired.

Figure 6. Primary Occupation of AH Members

Note: * Occupations of 15 household members were not documented

30. Dependency Ratio.Table 7 provides data regarding size of AHs. In general, the size of families is less than 5 persons. Table 7 also shows that there are 67 gainfully household members in the 28 AHs – 55.2% of them are male, whereas 44.8% of them are female.

Table 7. Number of Persons Living with the AHs* and Number of Gainfully Employed

Gender of AH Head

Number of persons living with the AH Number of gainfully employed members of the

AH

1 < 5 < 9 9 or

> Male** Female** 1 2 3 4 >4 Male** Female**

Male-headed 0 12 2 0 29 20 2 7 3 2 0 19 13

Female-headed

0 11 3 0 28 26 2 7 1 4 0 18 17

Total 0 23 5 0 57 46 4 14 4 6 0 37 30

31. Figure 7 shows that 85.7 % or 24 AHs have a dependency ratio of 0 – 1 (low dependency), while 14.3% or 4 AHs have high dependency.

13.5

40.4

0.0 0.02.2 1.1

6.7

23.6

1.1 1.1 2.2

7.9

0

10

20

30

40

50

No, AttendingSchool

Farmer Trader Farm workers Retired Other

Pe

rce

nta

ge (

%)

Male Female

31

Figure 7. Dependency Ratio of Ahs

32. Monthly Household income. 14 male heads of households provided their monthly household incomes from agriculture, whereas only 6 women were able to provide reponses regarding household income. IOL and SES data were combined to generate household incomes for AHs. Complete figures for combined monthly income may be seen in Appendix 9. Figure 8 provides a graphic of household income for 28 AHs. There are four cases where wives have income which they contribute towards household income. Wives’ monthly incomes ranged from Rp. 120,000 to Rp. 3 million.28 Based on the Kabupaten of Banjarnegara’s poverty line of

Rp.278,210 for 2018, there are 4 poor households. All poor household belong to the tenant farmer group who cultivate GDE land.

▪ While husbands’ income is primarily from agriculture, with some (40%) also obtaining

income from farm labour, ▪ wives’ incomes were from farm labour, home industry and running a small fertilizer

business.

28 Two of the above women respondents worked as farm labour earning Rp. 30,000/day. Both of them were from

households who cultivate land leased from GDE. On the other hand, the two wives who have small scale enterprises belong to the the land owner group.

32.1%

7.1%

7.1%

3.6%

35.7%

3.6% 7.1%

3.6%

Dependency Ratio of HH

DR 0

DR 0.3

DR 0.5

DR 0.7

DR 1

DR 1.5

DR 2

DR 3

32

Figure 8. Combined Monthly Income of 28 AHs (based on combination of SES and IOL

results (from Appendix 9)

33. Monthly household savings. Only four AHs declared they have monthly savings. The amount saved varied from less than Rp. 400,000 to Rp. 4 million. All four AHs who have the habit of saving belong to the tenant farmer group who lease GDE land. Of the four households, three are not classified as vulnerable, while one AH is classified as both poor and landless.

Some Additional SES data to describe overall conditions and issues 34. A number of common community issues were raised during the community consultations conducted in 6 villages in March and September 2019, as well as during consultations with local NGOs conducted on 1 October 2019. These include (i) better access to health services for health screening, (ii) water supply, and particularly access to potable water supply, and (iii) garbage disposal linked to the increase in tourism activity in the area. These parameters were also covered by the SES in relation to AHs who reside in Karang Tengah Village. 35. Location (proximity) of medical services. A health officer (mantri kesehatan) and nurse (bidan) reside in Karang Tengah Village. There is a Health Post (Polindes) in the village of Karang Tengah. Most of AH members make use of the Polindes for minor ailments 29 or make use of the

mantri or bidan’s services. For more serious ailments 30, they go to the Puskesmas (Community

29 These include cough and cold/flu, headaches, indigestion, and sprains. 30 These include stroke, heart disease, asthma, bone abnormality and a limp.

3%7%

25%

21%

11%

4%

29%

Combined Monthly Income of AHs (in Rupiah)

<400,000 400,000-poverty line

Above poverty line-2,000,000 2,000,001~4000000

4,000,001-5000000 5,000,001-7000000

7000,001-above

33

Health Centre) in Dieng Kulon (another village in the same sub-district / Kecamatan). In more serious circumstances AHs members seek attention at medical facilities in the Kabupaten town (of Banjarnegara or Wonosobo). Figure 9 shows the frequency of accessing medical services by the APs in relation to location of the services.

Figure 9. Location of medical services in relation to AHs:

36. Water Supply. Local residents (including the 28 AHs) obtain potable water from mountain springs and water bodies – Telaga Merdada, Telaga Siterus, Gunung Prau, Telaga Pawuhan and wells. Figure 10 presents source of water supply for household needs in the case of 28 AHs. In general, AHs have raised water supply as an issue during the course of the SES.

Figure 10. Source of Water Supply for Drinking and Washing

79%

14%

7%

Location of medical services in relation to AHs

Same village of the AH

In another village in the samesub-district

In the district/town center

7.1

28.6

10.7

35.7

17.9

7.1

14.3

46.4

17.914.3

Ground wellbelonging to the AH

Gunung Prau Telaga Merdada Telaga Siterus Telaga Pawuhan

Pe

rce

nta

ge (

%)

Water Supply

Source of potable water Source of water for washing

34

37. Garbage Disposal. Based on the responses provided in Figure 11 below, it is clear that there is a garbage disposal problem in Karang Tengah Village, which are indicative of similar problems in the other villages in the Dieng geothermal work area, and corroborated during consultations with local NGOs.

Figure 11. Garbage Disposal Practices among the AHs

38. The above-discussed issues will be addressed by GDE’s CSR/Community Development Program that will be a part of the Sub-project to address in partnership with local communities in order to deliver responsive support and benefits.

AHs’ Perception of the Proposed Sub-project

39. When asked about their view of the Dieng-2 sub-project, 6 out of 28 AHs opined that the proposed sub-project would be beneficial, while 12 AHs feel it will have negative impacts. More women compared to men voiced their fears of negative impact, while only men had a positive perspective of impact. (See Figure 12) Ten (10) respondents had no opinon.

Figure 12. AHs’ Views regarding the proposed Dieng-2 expansion sub-project

15%

7%

14%

32%

32%

Garbage Disposal

Buried by the AH

Collected by localgovernment

Dump just anywhere

Dump in river

Burned by AH

35

40. Table 8 presents other views regarding the sub-project. Eleven (11) respondents had no opinion. Three (3) respondents felt that the sub-project would generate electricity as a benefit. Eight (8) women respondents were concerned that the sub-project will negatively affect their household livelilhoods. Three (3) respondents feel that the proposed new facility would be noisy, and one said that she would be agreeable as long as the new facility is not noisy.

Table 8. Other Views Concerning the Sub-project

14 male Heads of AHs. Freq. % 14 wives of AHs. Freq. %

No comment 6 21.4 No comment 5 17.9

Electricity 3 10.7 Will cause loss of livelihood

3 10.7

No assistance 2 7.2 Will reduce HH income 2 7.2

Many roofs damaged 1 3.6 Noisy, not safe, crops damaged.

2 7.2

Noisy, brine wastes 1 3.6 Afraid that there will be leakages which will damage crops.

1 3.6

Up to the community 1 3.6 As long as not noisy, it’s alright

1 3.6

14 50 14 50

41. When asked what there suggestions might be to ensure that local people receive benefits from the sub-project, 17 people had no comment. 6 AHs requested that tenant farmers be provided with access to replacement land (to lease) and one AH said that attention had to be given to the tenant farmers. Two AHs were concerned that the Project be handled well and that security would be ensured. (See Table 9)

Table 9. Suggestions to Ensure that Benefits Accrue to Local Communities



There is alternative land made available

1 3.6 Provided with / move to replacement land.

4 14.3

42.9

28.6 28.6

0.0

57.1

42.9

Beneficial Negative Impact No Opinion

Fre

qu

en

cy -

Pe

rce

nta

ge (

%)

AHs’ Views regarding the proposed Dieng-2 expansion sub-project

14 heads of Ahs 14 Wives of Ahs

36


Attention is given to tenant farmers

1 3.6 Provided with alternative work

1 3.6

Total 14 50 Security is upheld 1 3.6

Project is handled well 1 3.6

Provide sosialisation to the community

1 3.6

Up to Geodipa 1 3.6

Total 14 50

42. When asked whether they supported the proposed Dieng-2 expansion sub-project, 7 AHs said they supported the sub-project whilst 17 AHs said that they did not support it. 4 AH had no comment. As may be seen in Figure 13, more men then women supported the sub-project, whilse, more women than men did not support the proposed Dieng-2 sub-project.

Figure 13. Support for the Project

43. Table 10 presents the reasons provided for supporting or not supporting the Project. The most concern was over loss of income or loss of access to source of livelihood.

Table 10. Reasons given for support / rejection of the Project

PARAMETER Male - frequency (%) of response

Female - frequency (%) of

response

Total Frequency (%)

1. Reasons given for supporting Dieng-2 sub-project.

- Village will become more developed

1 (3.6%) 1 (3.6%)

2. Reasons given for rejecting the Dieng-2 sub-project

- Loss of land / income / farming 1 (3.6%) 9 (32.1 %) 10 (35.7 %)

- Noise, steam, cause damage to potato crops

2 (7.1%) 2 (&.1 %)

- Lose income as farm worker 1 (3.6 %) 1 (3.6 %)

3. Comments

42.9

28.6 28.6

7.1

92.9

0.0

Support Do not support No Comment

Fre

qu

en

cy -

Pe

rce

nta

ge (

%)

Support for the Project

14 heads of Ahs 14 Wives of Ahs

37

PARAMETER Male - frequency (%) of response

Female - frequency (%) of

response

Total Frequency (%)

- Up to the community (masyarakat) 1 (3.6 %) 1 (3.6 %)

- Should be given compensation for loss of land

1 (3.6%) 1 (3.6%)

4. NO Comment 9 (32.1 %) 3 (10.7 %) 12 (42.9 %)

Note * one response re: steam overlapped / also included impact on income.

44. Table 11. According to AHs, the two main and best ways to mitigate negative impacts on the local community would be:

i) Project should provide alternative land (to rent) or compensate farmers (28.6%) ii) Project should be out of town away from settlements (21.4%).

This feedback informs decision-making concerning form of compensation for loss of access to arable (productive) land, as well as project design.

Table 11. Best Ways to Mitigate Negative Impacts for Local Community


Ensure a distance between the Project and residential area (settlement) / build somewhere elso

4 14.3 No comment 6 21.4

Compensation for affected people / compensation for damages

4 14.3 Alternative land for farmers.

4 14.3

No comment 4 14.3 Project should be out of town, not at mess GDE.

2

Improvement to Geodipa’s development

1 3.6 Provide socialisation to the communities

2

Deal with the noise and disturbance.

1 3.6

Total 14 50 Total 14 50

45. Table 12. According to the AHs, the best way to conduct sub-project communications was via Village meetings (39.3%) or to relay the information via the Village Head and/or informal religious leaders (50%). The pattern of responses was quite distinct between male and female respondents. While male respondents favoured communicating via the Village Head, religious leaders or Geodipa officers, all female respondents preferred village meetings as the mode for sub-project communications. Indicative of other villages, this information informs the formulation of the Communications Strategy with regard to project affected people as well local communities in general.

Table 12. Best Way to Communicate Project Matters to Community


Via Village Head and/or religious leaders.

11 39.3 At Village Meetings 14 50

Via Geodipa officers 3 10.7

Total 14 50

38

46. Table 13 presents AHs’ reasons for their responses. The main reason to have project communications at village meetings was that everyone could hear the information for themselves (14.3 %), and that the village would take responsibility for the information shared. 5 AHs (17.9 %) requested that the lease coordinators be present as spokespersons/intermediaries for the tenant farmers at village meetings.

Table 13. Reasons for Responses Shown in Table



So everyone can hear directly from the source

3 10.7 Meeting with tenant farmer group

3 10.7

Inform Village Head first, who will inform community later.

2 7.2 Village will take responsibility

1 3.6

Via coordinators 2 7.2 Among farmers 1 3.6

Total 14 50 14 50

47. If you have concerns or doubts regarding Project implementation eg. accuracy of inventory results, level of compensation or contractor’s activities, whom will you submit your concerns or complaints to? While women respondents preferred to go to the Village Head to seek for clarifications or make complaints, the men preferred to go to / through their lease coordinators. Only 7.2 % said they would go directly to Geodipa.

Table 14. Party to Report Complaints to or to Seek Clarification Through


Lease coordinator 7 25 Village Government 6 17.9

Village head 5 17.9 Coordinator 3 10.7

Direcly to Geodipa 2 7.2 Village Head 2 7.2

Total 14 50 Village Head or coordinator

1 3.6

Will follow what others decide

1 3.6

No comment 1 3.6

Total 14 50

48. How would you seek for clarification or make your complaint? A majority (75%) would seek clarifications or make complaints verbally.

39

Figure 14. How would you seek for clarification of submit complaints?

49. If you are still not satisfied with how a complaint was handled, to whom will you raise the matter again? The highest ranked person respondents AHs would approach for solutions (if still not satisfied) would be land lease coordinators (39.3%). Some 25.1% said that they would approach the Village Head. By and large, male respondents preferred to approach their land lease coordinator for solutions if they were not satisfied.

Figure 15. If you are still not satisfied, who will you approach for a solution?

46.4

3.6

32.1

17.9

Verbally Written Verbally No comment

14 male Heads of Ahs 14 wives of Ahs

Fre

qu

en

cy -

Pe

rce

nta

ge (

%)

How would you seek for clarification or make your complaint ?

32.1

7.23.6

7.2

25

17.9

7.2

Coordinator Village Head Have nevercomplained

before

No comment No comment Village Head Coordinator

14 male Heads of Ahs 14 wives of Ahs

Fre

qu

en

cy -

Pe

rce

nta

ge (

%)

If you are still not satisfied, who will you approach for a solution?

40

IV. LEGAL FRAMEWORK

A. National Regulations

50. The main legal framework for land acquisition and involuntary resettlement is Law No. 2 of 2012 regarding land acquisition for development in the public interest 31 and it’s implementing

regulations including Presidential Regulation (Perpres) Number 71/2012 concerning Land Acquisition for Public Interest and Perpres No 148/2015 on the Fourth Amendment to the Perpres No. 71 of 2012. 51. Law Number 2 of 2012 provides provides a clear procedure and time frame which will accelerate the process of land acquisition. The Government should undertake land acquisition by involving all entitled holders (pihak yang berhak) and concerned entities. The entitled parties shall be those who control or own the object of the land acquisition, inter alia: (a) the holders of land rights; (b) the holders of land rights to manage; (c) nadzir for the waqf32 land; (d) the owners of

former customary rights secured land; (e) customary communities; (f) the parties occupying the state land in good faith; (g) land tenure holders; and/or (h) the owners of buildings, plants or other objects related to the land. The object of land acquisition includes; (i) land; (ii) above ground and underground space; (iii) plants; (iii) buildings; (iv) objects related to land; and (v) other appraisable loss that include non-physical losses such as loss of business, loss of job, cost of change of location, cost of change of profession, and loss of the remaining property (residual property that is no longer viable). Land acquisition should be conducted by providing fair and adequate compensation to the entitled parties. The law recognizes that: (i) persons controlling and utilizing land are entitled to compensation; (ii) all losses - lost land and non-land assets, other structures that can be valued - should be evaluated by an independent appraiser; (iii) project location permit will be required that should refer to spatial planning; and (iv) land acquisition will be undertaken by National Land Agency (BPN). 52. The equivalence assessment carried out by ADB in 2017 – 2019 indicates there are more than 50 other laws and regulations related to land acquisition and involuntary resettlement. 53. To settle the issue of people using Government or State owned enterprise land, in addition to the Presidential Regulation No. 71 of 2012, in 2017 the Indonesian Government issued presidential Regulation No. 56 of 2017 concerning Handling Social Impact for Providing Land for National Strategic Projects that was amended by the Presidential Regulation s No. 62/2018 concerning Handling Social Impact for providing land for National Development Projects. It regulates the provision of compensation in the form of money or relocation to non-titled land users. This regulation requires that compensation should consider the cost of mobilization, cost for moving, house rent during the transition period, and loss of income. It also requires the proponent to produce documents on the Social Impact Management Plan in the event that affected government land has been physically used/ controlled by the community consecutively for a minimum of 10 years. The Social Impact Management Plan shall be proposed to the Governor, which subsequently forms an Integrated Team to undertake data inventory, compensation appraisal, and facilitate grievance management.

31 Public interest means the interest of the people, State, and society that must be realized by the government for the

prosperity of the people. Article 10 of the law states that development of power generators, transmission lines, sub-stations, networks, and electricity distribution are categorized as public interest.

32 Waqf - an inalienable religious endowment in Islamic law, typically donating a building or plot of land or even cash for Muslim religious or charitable purposes. The donated assets are held by a charitable trust or waqf organizer.

41

54. Presidential Regulation No. 148 of 2015 provides that land acquisition in the public interest concerning not more than 5 ha of land (i) can be acquired directly by the agency requiring land with the land rights holders by way of sale or exchange or other means agreed upon by both parties (Article 121, Clause 2.)., (ii) does not need to get location determination but should be consistent with the spatial development plan (Tata Ruang / RTRW) for the area (Article 121, Clause 2.), and (iii) valuation of the land is carried out by independent appraisal. The Kabupaten of Banjarnegara no. 11 / 2011 regarding the Kabupaten’s (District’s) Spatial Development Plan for Period 2011-2030 provides for the improvement of the Dieng Geothermal Power Plant facilities (Clauses 5, 10, 18 and 20). Article 121 A of the Presidential Regulation No. 148 of 2015 states that “land acquisition for development in the public interest which is undertaken by a private entity can be done through sale transaction, exchange, or other agreed mechanism between the entitled party with the private entity 55. In addition to the national laws and regulations, GDE has a SOP that provides procedures for (i) lease of State Forest land, (ii) lease of Plantation land, and (iii) for changing name of owner (balik nama) on land title documents. The SOP does not provide specific procedures for land acquisition. PT Geo Dipa adheres to the relevant GOI regulations mentioned above. 56. Indonesia Valuation Standards 204 (SPI 204) on the Assessment of Land Acquisition for Development for the Public Interest. The Indonesia Professional Appraisers Society (MAPPI) formulated the standards by adopting the development of international standards (IVS 2011). Standards 204 provides guidelines for assessment of land acquisition object for compensation in land acquisition for development in the public interest. Assessment includes adequate replacement value of property and land. Assessment standards are also associated with other standards, such as scope of assignment, land property and structures valuation, farmland property valuation, valuation of property with particular business, business valuation, and inspection of cases under consideration. 57. Other related laws /regulations:

(i) Government Regulation concerning Environmental Permit, Ministry of Environment Regulation No. 17 / 2012 where vulnerable / severely affected people are identified as early as possible through the Social Impact Assessment of AMDAL that also seeks participation guidance from local communities in order to obtain the AMDAL and Environmental Permit Issuance. This is likewise provided for in previous environmental laws.

(ii) Law No. 11/2009 on Social Welfare and its implementing regulation Ministry of Social Welfare Decree No. 39/2012 on Delivery of Welfare. Vulnerable / severely affected people are identified as early as possible through the Social Impact Assessment of AMDAL as referred to in the Environmental Law no. 32/2009 on Environmental Protection and Management; Indonesia Government.

(iii) PP. 71 / 2008 On the Third Amendment to Government Regulation No. 48 / 1994; (PP. 27 / 1996 jo and PP. 79 / 1999 jo); Basic Law Government regulation that relates to tax incentive or the income tax rate of land and / or building ownership transfer.

(iv) Law 26 of 2007 on Spatial Planning (State Gazette of the Republic of Indonesia Year 2007 No. 68, Supplement of State Gazette of the Republic of Indonesia No. 4725) provides that development and land acquisition in the public interest should be carried out in accordance with regional spatial planning.

(v) Act No. 39 of 1999 on Human Rights describes vulnerable groups: the elderly, children, the poor, pregnant women and people with disabilities. It also recognizes the differences in and the needs of, adat or customary law communities that have to be observed and protected by the law of society and Government” as well as the “Cultural identity of adat

42

law communities, including rights to ulayat (traditional or customary) land that need protection.” It espouses that the acquisition of ulayat land by Government must be done through due process of law following the free, prior and informed consent of adat communities.

(vi) Law No. 40 of 2007 Concerning Limited Liability Company (PT) Article 74 (1) observed all companies having its business activities in the field of and/or related to natural resources, shall be obliged to perform its Social and Environmental Responsibility. Implementation regulation is provided in the Presidential Regulation No. 47 of 2012 concerning Social and Environmental Responsibility of “Perseroan Terbatas”.

B. Asian Development Bank (ADB) Policy

58. The ADB’s Safeguard Policy Statement (SPS) combines three of its key safeguard

policies; environment, involuntary resettlement and indigenous peoples (IP).33 It aims to promote

sustainability by managing potential environmental and social risks. The two sub-projects (Dieng and Patuha) do not trigger IP safeguard, and therefore, no IP plan is required. The Dieng sub-project will result in land acquisition and involuntary resettlement, and the RP is prepared to elaborate the displaced persons’ entitlements, the income and livelihood strategy, institutional arrangements, monitoring, budget, and time bound implementation schedule. The project is considered category B as less than 200 persons will experience significant impact as per ADB SPS.34

59. The objectives of the involuntary resettlement safeguards are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance or at least restore the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. Based on the ADB’s SPS, there are 12 policy principles related to involuntary resettlement: screening, meaningful consultation, establishment of grievance redress mechanism, livelihood improvement or restoration, assistance to displaced persons, improvement of living standard for the displaced poor and vulnerable groups, procedure for negotiated land acquisition, compensation and assistance for displaced persons without title to land, preparation of resettlement plan, disclosure of resettlement plan and monitoring report, resettlement cost, compensation payment prior to physical and economic displacement, and monitor of resettlement outcome and impact to the APs living standard. 60. Involuntary resettlement does not apply for negotiated land acquisistion (land acquisistion with willing buyer- willing seller). ADB encourages the borrower/client to acquire land and other assets through a negotiated settlement wherever possible, based on meaningful consultation with affected persons, including those without legal title to assets. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiat settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

33 ADB. 2009. Safeguard Policy Statement. Manila. 34 The involuntary resettlement impacts of an ADB-supported project are considered significant if 200 or more persons

will experience major impacts, which are defined as (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating). ADB financed projects are classified into the following IR categories: (i) Category A: a proposed project is likely to have significant involuntary resettlement impacts; (ii) Category B: a proposed project includes involuntary resettlement impacts that are not deemed significant; and (iii) Category C: a proposed project has no involuntary resettlement impacts. Projects which entail physical and/or economic displacement require the preparation of a resettlement plan.

http://www.adb.org/documents/safeguard-policy-statement.

43

61. Other Policies. The ADB policy on gender and development adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring participation of women and that their needs are explicitly addressed in the decision-making process for development activities. 62. Another key policy is the ADB Public Communications Policy that seeks to encourage the participation and understanding of people and other stakeholders affected by ADB-assisted activities. Information on ADB-funded projects should start early in the preparation phase and continue throughout all stages of project development, in order to facilitate dialogue with affected people and other stakeholders.

C. Gap Analysis

63. The GOI enhanced its country system in order to address land acquisition issues for development projects in the public interest. The new Land Acquisition Law No. 2/2009 and its implementing rules and regulations approximate harmonization with the ADB SPS of 2009. The new law grants that persons with no legal title over the land they occupy or utilize are entitled to compensation 35 for improvements found thereon, including compensation for job and business losses, moving cost,36 etc. A land acquisition plan also needs to be prepared by the agency requiring land. People affected by land acquisition are consulted and their complaints heard and resolved in the most expeditious way during the planning and implementation of land acquisition. 64. There are still some gaps between the new Land Acquisition Law of Indonesia with the ADB SPS but some gaps have been bridged by the provisions of other relevant laws. Remaining gaps revolve around (i) the provision of livelihood recovery programs for severely affected people and vulnerable groups to ensure that their lives will not be worse off due to the project, (ii) relocation assistance for physically displaced residents and (iii) transition allowance. A comparison between ADB SPS 2009 and GOI regulations on involuntary resettlement is presented in Appendix 12 along with gap filling measures proposed as project policies.

D. Project Resettlement Principles

65. Based on the gap analysis presented in Appendix 12, this RP has been prepared and formulated to meet Indonesian Laws and regulations and the ADB’s SPS. The RP is to guide the Project’s land acquisition and involuntary resettlement process to support compliance with Indonesian Law and ADB SPS. The objective of resettlement policy is to improve, or at least restore, the livelihoods of all APs, especially vulnerable groups so that the living standard of APs do not become worse off compared to pre-project levels. 66. Based on the Indonesian Laws and regulations and the ADB’s SPS, the following principles will be applied for land acquisition and involuntary resettlement in all the Project components:

(i) Avoid involuntary resettlement as much as possible. If this is not possible, impacts shall be minimized by exploring project and design alternatives. Efforts to minimize resettlement impacts have been taken by GDE through; (a) using GDE’s lands for Dieng – 2; only 3,010 m2 additional land will be acquired for the sub-project through negotiated

35 See Act No.2/2012 Elucidation of Article 40. 36 Elucidation of Article 40 of Law No. 2/2012 with the following provisions: For building rights or land use right,

Compensation granted to the holder of building right or use rights on buildings, plants, or other objects related to land owned by him/her, while Compensation on land granted to the holder of the ownership or management rights.

44

land acquisition; and (b) apply use of underground transmission cable for the construction of the transmission line along approximately 6 Km from the proposed Dieng Unit 2 Power Plant to the existing sub-station. Efforts to minimize resettlement impact will continue during implementation.

(ii) Screen sub-project components during feasibility study or before preparation of resettlement plan to identify involuntary resettlement impacts and risks and the likelihood of impacts per subproject activity.

(iii) Carry out culturally appropriate and gender-sensitive social impact assessments (SIA) to assess potential impacts on APs particularly with affected vulnerable groups.

(iv) Conduct meaningful consultations with affected APs, stakeholders, concerned NGOs, and community groups to solicit their participation across land acquisition and involuntary resettlement process and monitoring. Inform APs on the land acquisition and involuntary resettlement process, their entitlements, and compensation and assistance options. Pay attention to the need of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and those without legal title to land and ensure their participation in consultations.

(v) Establish a grievance redress mechanism to receive and facilitate the affected persons’ concerns

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

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

(viii) Pay compensation for lost land and non-land assets prior to physical or economic displacement. Civil works will not commence until APs are fully compensated, and other

entitlements take place. (ix) Disclose the RP document and its updates, if required to the APs and other stakeholders

in an accessible place and a form and understandable language. The RP will be disclosed

on project and ADB’s website. (x) Negotiated land acquisition will follow procedure in a transparent, consistent, and

equitable manner principles and be confirmed trough written record and verified by an independent third party.

(xi) Monitor implementation of the resettlement planning and resettlement outcomes and impacts on the standards of living of APs. Disclose the monitoring reports on the project’s website and make it available on the project office;

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

67. Acquisition of privately-owned land for the construction of pipeline and inspection road ROW from Well Pad 9 to power plant will be conducted through negotiated land acquisition as the land to be acquired is small plot (3,010 m2). According to the Indonesian legal framework, land acquisistion less than 5 hectare can be undertaken through direct transcation with the land-owners.37 In the case of the negotiation did not reach agreement and land owner refeused to sell the land, GDE will find another land and make necessary reallignment of the pipeline and the inspection road. In such case, ADB policy related to negotiated settlement applies. Land clearing (take the GDE’s land used by 23 households for farming to be used for the project) for the construction of power plant will be undertaken through involuntary resettlement. Principles on

37 see Presidential Regulation 148 of 2015.

45

involuntary resettlement safeguard of ADB SPS and prevailing Indonesian legal framework will apply.

A. Procedure and Principle of Negotiated Land Acquisition for Pipeline and Inspection Road ROW

68. Land acquisition will be conducted through a negotiated land acquistion or direct transaction with the landowners. Expropriation and the use of government authority to remove people forcibly will not be applied. The negotiated land acquisistion will apply the following principles.

(i) Meaningful consultation with the affected persons including those without legal title to assets; (ii) Negotiation of compensation with the landowners will be conducted in transparant manner.

Should the negotiation does not reach an agreement, landowners have right to exit from the negotiation;

(iii) Offer of adequate and fair price for land and/or other assets. The valuation of land and non-land assets will be carried out by an indepdent appraiser. Depreciation of assets value will not be applied. Transaction cost including tax associated costs and cost of certificate of land deed official will be borne by the project;

(iv) Engagement of an indepdent external party to document the negotiation and settlement process; and

(v) Documentation of Recording of the process of negotiated land acquisistion including consultation activities and negotiation of compensation.

69. To ensure that the APs do not become worse off compared to pre-project levels, GDE will provide livelihood restoration program to the APs who will be severely affected because of the land acquisistion. The program will be expanded to all the APs (See Chapter IX). 70. The steps of negotiated land acquisition for new pipeline and inspection road are detailed below:

(i) GDE approves the ROW route (corridor of impact) of the project components. (ii) GDE establishs a Land Acuqisition Team (LAT) which will involve Banjarnegara District

Government and and Land Office (KATR/BPN). (iii) The LAT coordinates with the Village Head of the impacted village and sub-district

(Kecamatan) office for the land acquisistion process. (iv) The LAT carry out a Detailed Measurement Survey (DMS) with presence of the

landowners. (v) The LAT consults with landowners on the land ownership and willingness of the

landowners to sell. (vi) GDE mobilizes independent appraiser (KJJP) to carry out replacement cost assessment

with regard to land, crops / plants and structures. The KJJP carried out replacement cost study with reference to the entitlemet matrix set in the RP (Para 99, Table 16).

(vii) The LAT asks the land price from the landowners and conduct negotiation with landowners. Negotiations will be conducted following the negotiated land acquisistion principle above (para 68).

(viii) GDE pays immediately the negotiated amount to landowners after all necessary documents required for the land acquisition processes have been completed by landowners. Payment will deliver directly trough APs bank account. In case APs have no account, GDE will help to open new account in the bank nearest to the village.

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(ix) The lad owners relinquish land rights and submit the evidence of ownership of land acquisition objects to the LAT.

(x) Document and verify the negotiated land acquisistion process by independet external party engaged by GDE to ensure the transparent process of negotiation and that equal bargainingn power parties involved in the negotiation.

71. Figure 16 presents the steps of the land acquisition process to be conducted for the pipeline and inspection road ROW.

Figure 16. Land Acquisition Process for Pipeline and Inspection Road ROW

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B. Land Clearing Procedure 72. Steps to be taken for the land clearing will follow the procedure set forth in the Presidential Regulation No. 62/2018. However, considering that the number of APs and their losses is small, the land clearing might be conducted by the land clearing team which will be established by GDE. Key steps for land clearing are as follow :

(i) GDE establishs Land Clearing Team (LCT) which will involve Banjarnegara District Government

(ii) The LCT verifies and validates plots of GDE’s land used or controlled by the communities (APs). The IOL results conducted by ADB TA consultant will be used for the verification and validation.

(iii) The verification and validation will involve the communities (APs) who use or control the GDE’s land.

(iv) The indepdent appariser engaged by GDE carry out replacement cost assessment on the lost arable land and crops income of the APs to be used for calculation of compensation amount. The entitlemet matrix set in the RP (Para 99, Table 16) will be used for the assessment.

(v) The LCT determines eligible communities (APs), and formulate scheme and amount of compensation based on assessment by independent appraisal.

(vi) GDE implements compensation payment to the APs with supervision by the Auditor (BPKP)

(vii) Payment of compensation by GDE is done directly to the APs bank account. In case the APs have no bank account, GDE will help the APs to open new bank account at a the bank clossest to the village.

(viii) The APs clear their properties and no longer use the land for any purpose not later thant 7 days after the compensation is received.

C. Unanticipated Impacts and RP Update.

73. Should unanticipated involuntary resettlement impacts emerge during project implementation, GDE shall ensure the conduct of a social impact assessment and may (i) update this RP, or (ii) formulate a new RP depending on the extent of the impact changes. Unanticipated impacts will be documented and mitigated based on the principles provided in the project resettlement policy set forth in the RP. The entitlement matrix of the resettlement plan may be updated to reflect the relevant changes but the standards set in the original entitelemt matrix (in this RP) can not be lowered when the RP is updated. GDE shall submit these documents to ADB for disclosure on ADB’s website and convey relevant information in them to the affected persons/community.

V. Consultation, Participation, and Information Disclosure

74. This chapter discusses the required approach and plan for consultation and information disclosure with Sub-project stakeholders impacted by the land acquisition process. The approach has been developed to adhere to the requirements set out in relevant national laws and regulation as well as the ADB SPS.

A. Consultation and Participation

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75. The Indonesian legal framework and ADB's SPS and Public Communications Policy emphasizes the application of meaningful consultation and participation of APs and communities in development projects. The elements of meaningful consultation include:

(i) begins early in the project preparation stage and is carried out on an on-going basis throughout the project cycle;

(ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people;

(iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive to the needs of disadvantaged and vulnerable groups; (v) is held at a time and venue convenient for women to ensure at least 30% women

participation; and (vi) Enables the incorporation of all relevant views of affected people and other stakeholders

into decision-making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues.

76. Meaningful consultations will be carried out with the entitled parties/APs including vulnerable groups to ensure participation from planning up to implementation. Particular attention will be provided to the needs of vulnerable group and ensure their participation. 1. Consultation at Plannng Stage (during RP preparation). 77. The consultation activities started from the Inception stage (20 – 22 March 2019), continued through IOL and SES activties in April and August 2019, and involved a second round of stakeholder consultations conducted over 11- 13 September during the course of the Fact Finding Mission. Information sharing meetings and consultations were held with (i) local authorities at different levels – district (Kabupaten) and sub-district (Kecamatan), (ii) local community and groups of affected households; (iii) local non-government organizations such as Women’s Association (PKK), Farmer’s Association, Inclusive and Social Development Institute (ISDI),

Yogyakarta etc.38 The purpose of these meetings was to enable the relevant stakeholders to

become familiar with the sub-project, its general facilities, and understand clearly the probable resettlement, social, and environmental issues that may evolve during the implementation of the sub-project39

78. Community and Stakeholder Consultations I with local communities and stakeholders in March 2019 were conducted in 6 villages located in the Dieng Geothermal Work Area (Wilayah Kerja Panas Bumi Dieng): Villages of Kepakisan, Pranten, Sikunang, Dieng Kulon, Karang

Tengah and Bakal.40 The participants realized the importance of development of a new power

38 Follow-up consultations with more NGOs/CSOs are being planned. 39 During the meetings, the consultant teams relayed to participants the following topics: (i) General information of the

sub-projects, its lay-out / route and features; (ii) the location and scale of possible land acquisition and the village, Kecamatan and Kabupaten this would affect; (iii) objectives and Principles of RP according to the requirements of Government of Indonesia and ADB‟s policy on involuntary resettlement; (iv) schedules of socio-economic survey (SES) and Inventory of loss (IOL); (vi) Livelihood Restoration program; (vii) Compensation or land replacement mode (options for cash and/or in-kind compensation); (viii) Gender and vulnerable group issues; and (ix) Mechanisms of APs participation, grievance redress, monitoring and evaluation through all phases of RP preparation, updating and implementation.

40 Consultations in the six villages were attended by 183 persons (139 (76%) male and 44 (24%) female. Participants included community members (that include potential affected persons) living close to the project areas in affected 9 villages, representatives of village government, community-based organizations (including PKK, Karang Taruna, Bumdes, elderly groups), sub-district government, districts agencies (Social, environment, and BKSDA), GDE

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plant with associated facilities, including pipelines. Mostly there was no objection to the existence of the existing power plant, pipelines and transmission lines, or the proposed Dieng - 2 which was still in the planning stage. People at Dieng conveyed that development is essential for equitable distribution of electricity to the areas which lack it; even though they know that the power addition will not directly be enjoyed by them. However, some requests and concerns were raised by the communities: (i) that GDE needs to provide adequate compensation and ample notice if GDE will utilize its land used by people for farming; (ii) GDE to provide income restoration program to the communities near by the project areas; (iii) GDE needs to address impacts of water, air and noise pollution from Dieng Geothermal plant activities; (iv) the large steam pipelines spoil the view of the Dieng area which is a tourist attraction; (v) Pollution (leakages) that cause crops to die; (vi) more community members be given opportunity to work at GDE Dieng. The public (stakeholder) consultation reports is presented in Appendix 13. 79. Initial consultations held with 24 APs (tenant farmers - Kelompok Merdada Sejahtera.) using GDE’s land and 4 coordinators as part to the Stage I IOL and SEC were conducted over 22 – 24 April 2019. The consultation revealed that (i) tenant farmers acknowledged rightful GDE-ownership of the land, and were willing to surrend occupation of the land back to GDE as and when GDE required, (ii) all tenant farmers requested to be granted access to alternative land to lease in the event they lose access to the land currently being cultivated; (iii) tenant farmers only have experience as farmers and farm labourers and are reluctant to embark on other forms of livelihood activities; and (iv) very few of the affected people have education beyond primary school and it appears that it is very difficult for local people to enter into / adopt new forms of livelihood. A noteworthy comment made druing these consultations was that participants said that it was up to the larger community whether they agreed with GDE’s plans to contruct a new power plant at the proposed location. 80. Information was provided to the Village Head of Karang Tengah before the IOL, and SES activities commenced on 14 August 2019. The meeting was to inform the Village Heads and APs about the up-coming IOL and SES so that they will be aware and do not become worried about field activities and are prepared to participate in SES and FGDs. The hamlet head (Kepala Dusun) and village office representative and APs were involved in the IOL and staking out activity. 81. Focus group discussions (FGDs) were carried out with the APs over 21 – 23 August 2019 to discuss and formulate income restoration assistance (if applicable) and gender concerns. FGD attendance sheets are provided in Appendix 14. 82. Community and Stakeholders consultation II. A joint stakeholder consultation activity was conducted as part of the Fact Finding Mission to share and provide feedback on the main points of the draft RP. Village Heads, community leaders, APs, GDE HQ and GDE Dieng, ADB, and consultants participated in the consultations. Participants see positive aspects of the consultations and expect on an on-going basis consultation throughout the project cycle. Written information was also requested rather than verbal information. Social issues raised by participants were partly the same as March consultation 2019, but the submission of objections was softer. Some of those concerns/issues have been addressed during the consultations and in safeguards plans, but some need to be considered for improvement of mitigation measures and require GDEs attention. Common issues raised are (i) opportunities of jobs at GDE, community development programs to the communities, (ii). noise, community risks, water pollution/abstraction, impact during construction, (iii). GDE’s support to women, (iv). The most critical issue was related to negative

Headquarters and Dieng Unit, the TA consultants, and ADB. In addition, several interviews were also conducted with key informants that include land renters/users, village heads, and community members.

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perceptions about project which were raised by the head coordinator of tenant farmers of GDE land, and former head of Karang Tengah Village. They assume the project will make residents suffer. Increasing of noise will disturb people because their settlement is located very close to proposed power plant. The second stakeholder consultation report is presented in the second half of Appendix 13. 83. NGO Consultations. Consultations were also conducted with local NGO’s concerned with Dieng and geothermal development on 30 August and 1 October 2019. Some issues discussed during consultation was about degradation of environmental due to potatoe cultivation practice, alternative source of livelihood, and how exgeothermal exploitation can be developed in harmony with the environment and community welfare development. A summary of the consultations with NGO is provided in Appendix 15. 2. Consultation during Implementation 84. Consultation will be continued over the course of the implementation stage in relation to land acquisition, land clearing, implementation of livelihood restoration program and project construction. Consultations related to land acquistion will be conducted by GDE LAT (Land Acquisition Team) with support from Social Safeguards staff at the Dieng Unit, PMU, and PMC. The consultation shall include, but not limited to:

(i) Socialization and consultation with AHs on their willingness to sell; (ii) Results of social assessment and Detail Measurement Resut (DMS); (iii) Entitlements/compensation packages and other forms of assistance; (iv) Valuation methods per result of independent appraiser study; and (v) Negotiations on the amount of compensation for affected land and plants

85. Table 15 summarizes information provision and consultations during land acquisition/resettlement planning and implementation stages and also indicates the responsible institutions. B. Disclosure

86. The GDE (EA) shall provide information to and consult with the APs/affected and other stakeholders in a manner appropriate for the anticipated project impacts. This requirement is intended to facilitate engagement to establish and maintain constructive relationships over the life of the project. 87. A Project information booklet (PIB) has been prepared describing the Dieng-2 sub-project (see Appendix 16). The PIB will be translated into Bahasa Indonesia and distributed to the APs, local Government (Village and Kecamatan), and other stakeholders. The PIBs will be made available at GDE Dieng office and contractor’s office and will be accessible to the APs and stakeholders. Any updated PIB following the RP update, if required will also disclosed as per provisions of the PIB for the RP as mentioned above. 88. The approved draft RP and updated RP (if any) are required to be disclosed. These documents will be generated and produced in a timely manner, and posted on both ADB and GDE websites. The RP will be made available at GDE Dieng Office and accessible to the APs and stakeholders. During project implementation, GDE will prepare monitoring reports on the implementation of the environment and social safeguards and submit the same to ADB for review on a semi-annually basis. These monitoring reports must be posted on both ADB and GDE websites as well.

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Table 15. Consultation and Participation PlanTable

No Stage/Activities Objectives Method Venue Participants (M/F) Timing Responsibility

A Planning Stage of Land Acquisition

1 Stakeholder Consultation

To inform the project plan, potential impacts, and obtain feedback on the existing projects and planned project, especially on environment and social issues.

Meetings 6 village offices

Potential APs, Village and sub-district offices, community leaders, district environment agency, district social agency, and district forestry agency, GDE, ADB, consultants M:167 F:46

21-23 March 2019

GDE, ADB staff and consultants

2 Initial consultation with APs (tenant farmers / penyewa)

To obtain feedbacks on the land clearing impacts.41

Individual meetings

Farming area, APs houses

APs F: 24 persons and 4 coordinators

24 April 2019 GDE, consultant, and head of village

3 Consultation with affected subdistrict and village government

Discussion related to GDEs community development program

Meeting GDE Dieng Unit Office

Head of Batur Sundistrict, Head of Village of Kepakisan , Dieng Kulon, and Karang Tengah All men

6 August 2019

4 Geothermal Goes To School

Explaining what Geothermal is in general by UGM Lecturers, what Geo Dipa does, and the role of geothermal for the region

Socialization Batur Subdistrict Office

Head of Subdistrict, Student of UGM, GeoDipa, community within the Subdistrict, representative of village official, District Public Works

6 August 2019 GDE

5 Inform Village Head of Karang Tengah re: IOL/SES activity

To inform on the IOL/SES activities and obtain permission

Meeting Village Office

Village Head

15 August 2019

GDE, consultant, and Head of village

41 Some environmental safeguards questions were also consulted at the same time.

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and survey of land acquisition corridor.

6 Discussion with WWF (NGO)

Sharing information related to national policy related on geothermal, including advocay programs

Meeting WWF Office Jakarta

WWF staff, ADB consultant, GDE M = 1 F =3

20 August 2019

7 Discussion with Walhi (NGO)

Discussion related to Walhi concerns related to geothermal development plan

Meeting Trans TV Office

WWF staff, ADB consultant, GDE M = 2 F = 2

21 August 2019

8 Consultation on land acquisition plan

To obtain feedback on land acquisition and land clearing

FGD Village Leader house

APs M: 49 F: 28

22 – 23 August 2019

GDE and SES Consultant

9 Discussion with ISDI (Inclusive and Social Development Initiative, Universiti Islam Sunan Kalijaga, Yogyakarta

Discussions concerning development challenges in the Dieng area.

meeting KARSA office

ISDI Founder, SES Consultant, KARSA staff M=2 F=1

30 August 2019

SES Consultant

10 Stakeholder Consultation II

Obtain feedbacks from APs and relevant stakeholders for on the mitigation measures set forth in the RP

Meetings Village office

APs, Village and sub-district Offices, GDE, ADB, consultants Total: 178 M: 126 F: 52

11 – 13 September 2019

GDE, ADB staff and consultants

B Land Acquisition and IR Implementation

I Land Clearing

1 Consultation on IOL results, compensation and compensation scheme

Obtain feedbacks and agreement on IOL result and compensation scheme

Meeting Village office

AP, Village and Subdistrict, Land Clearing Team, GDE, consultant At least 30% of participants are women.

2019 after IOL result completed

GDE, Land Clearing Team, Consultant

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Ensure participation of vulnerable groups

2 Negotiation of compensation rate

Free and fair negotiations over the quantum of compensation per affected household

Meeting Village office

AP, Village and Subdistrict, Land Clearing Team, GDE, consultant At least 30% of participants are women. Ensure participation of vulnerable groups

End of 2019 or early of 2020 after replacement cost completed

GDE, Land Clearing Team, Consultant

3 Compensation payment

Payment compensation,

Paid by transferred to APs bank account

Village Office

APs, village office, GDE, Consultant

Early 2020 GDE/Land Clearing Team, Bank

II Land Acquisistion

1 Consultation on IOL Result

Consultation forum to verify and/or adjust IOL results


APs, Village and sub-district Offices, GDE, consultants At least 30% of participants are women. Ensure participation of vulnerable groups

2020 or After 14 days of “pengumuman” has elapsed.

GDE, consultant, and Head of village

2 Negotiation of compensation rate

• Free and fair negotiations over the quantum of compensation per affected household. Observed by third party (local NGOs / CSOs)


APs, Village and sub-district Offices, GDE, consultants (if possible KJPP attend) At least 30% of participants are women.

2020 or After result of IOL is completed and no more complaints from affected households

GDE, Head of village, MUSPIKA, KJPP

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▪ Informed the result of appraisal from KJPP.

Ensure participation of vulnerable groups.

3 Compensation payments

Paid Compensation Paid by transferred and observed by third party (local NGOs / CSOs)

Village Office

APs, Village and sub-district Offices, GDE, Bank officer. At least 30% of participants are women. Attention to vulnerable groups.

2020 or to be completed before economic displacement (land clearing) for construction mobilization.

GDE, Bank

III Livelihood Restoration Program

1 Consultation to Initiate Livelihood (Income) restoration and improvement activities

Reconfirm income restoration programs are still feasible and generally acceptable. Get the feedback from APs the program type of income restoration.

Meeting / FGD

Village Office

APs, Village and sub-district Offices, GDE and consultant At least 30% of participants are women. FGD with women group and vulnerable groups.

After the implementation of compensation payment

GDE, consultant/ NGO

2. Consultations of Livelihood (Income) Restoration and improvement activities

To verify and implement the program agreed by Affected person.

Meeting / FGD

Village Office

APs, Village and sub-district Offices, GDE and consultant At least 30% of participants are women. FGD with women group and vulnerable groups.

After the implementation of compensation payment and during program implementation

GDE, consultant/ NGO

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VI. Grievance Redress Mechanism

89. A grievance mechanism is a process for systematically receiving, investigating and responding to stakeholder complaints. Throughout the life cycle of the Project, queries and grievances from the impacted community may arise hence a Grievance Redress Mechanism (GRM) is established to address grievances raised. The GRM will be triggered in all instances where a complaint is received by the Sub-project or its contractors (such as the land acquisition consultants / sub-contractors). 90. To streamline existing procedures and be consistent with international best practice, a GRM have been established and a grievance redress committee (GRC) have been set up. Figure 17 shows the basic process of the GRM. Grievance related to land acquisition andspecific aspets to sub project activities, such as increased dust and/or noise or any other impact due to project construction, should also use this mechanism. The objective of the GRM is to resolve complaints related to the project in a time-bound and transparent manner. The procedures to file a complaint and the details of the contact person(s) will be disclosed by the PMU and site offices in Dieng and Patuha to the potentially affected communities prior to the start of land acquisition and resettlement activities and construction works. More information on the GRM shall be posted on billboards at the construction sites or as a flyer to be made available at the construction project site office. The flyer will be available in Bahasa Indonesia.

91. GRC members will include the Head Office General Project Manager and the HSE Manager of the PMU, the head or representative from the village (kecamatan), the Site Office Project Manager, Public Relation (PR) staff, HSE Staff (i.e., environment and social safeguard staff at Dieng or Patuha), the PMC, and a representative of the Contractor(s). The PMC will act as the secretariat of the GRC. GDE will ensure fair representation of women in the GRC and observe transparency in handling complaints at all times. The GRC will be responsible for resolution of complaints (if any) within a month (30 calendar days) from the date it was received, to maintain a record of complaints received and resolved, and to advise the complainant on the decision made. The PMU (through the PMC) will create a database of complaints filed and resolved. A complaint can be filed either in writing, by phone, or in-person to the designated contact person on-site

92. GDE shall ensure that (i) an efficient grievance redress mechanism is in place and functional to assist the affected persons and other stakeholders in resolving queries, conflicts and complaints, if any, in a timely manner; (ii) all complaints are registered, investigated and resolved in a manner consistent with the provisions of GRM detailed in the RP, DDR, and IEE/EMP; (iii) the complainants/aggrieved persons are kept informed about status of their grievances and remedies available to them; and (iv) adequate staff and resources are available for supervising and monitoring the mechanism.

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

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

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

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

94. GDE will keep a record of the following: (i) contact details of complainant, (ii) date the complaint was received, (iii) nature of complaint and agreed resolution/corrective action, (iv) status of the complaint handling, (v) date the resolution/corrective action was implemented, and (vi) the final outcome.

95. The summary of grievances filed and resolved will be included in the semi-annual environmental monitoring reports submitted to ADB. The associated costs to maintain the GRM will be borne by GDE.

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Figure 17. Grievance Redress Mechanism

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VII. Entitlements, Assistance and Benefits

A. Eligibilities 96. This RP covers the impacts of land acquisition and land clearing for all new facilities including the Dieng-2 power plant, wellpads and wells, pipeline and access road ROW, and the underground transmission line. The subsequent section discusses the implementation of the land acquisition, land clearing and resettlement process conducted by the sub-project as of October 2019. 97. There are four types of displaced persons in the Dieng subproject;

i) Persons who lose their agricultural land with formal legal rights (certificate), or those whose claim over the land is recognized as a full title including persons occupying the state land in good faith.

ii) Persons who cultivate the lost land under or without lease arrangement iii) Persons who lose income earning opportunities as a consequense of the project iv) Vulnerable and Severly Affected People

98. The cut-off date sets the time limits to determine eligibility of persons living and/or with assets or interests inside the project areas. Should they be adversely affected, they will be entitled to compensation for their affected assets, including rehabilitation measures as needed, sufficient to assist them to improve or at least maintain their pre-project living standards, income-earning capacity and production levels. The cut-of-date for all assets affected on the GDE land (land clearing) are set at 31 August 2019, while for new corridor to be acquired will refer to the date when DMS was completed done by GDE LAT. The cut-off date will be widely communicated by the Sub-project in Bahasa Indonesia which is well understood in the area. Should any persons occupy the Sub-project area, build new structures or grow new crops after the cut-off-date has been announced, these new assets will not be eligible for compensation and/or resettlement assistance.

B. Entitlement Matrix 99. The Project will provide the entitlements to the landowners and users according to the specifications set out in Table 16. Project entitlements cover the scope of impacts and the involuntary resettlement provided for in this RP.

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Table 16. The Sub-project’s Entitlement Matrix

NO. TYPE OF LOSS ENTITILED PARTY / PERSON

ENTITLEMENT DETAILS

I. Loss of Land

1. Loss of land, including agricultural and residential land Applies to land acquisition

Those who have formal legal rights or those whose claims over the land is recognised as a full title, including people occupying State land in good faith. 6 AHs

▪ Cash compensation at replacement cost and reflective of fair market value at the time of payment of compensation; or land replacement with at least similar attributes to the acquired land in term of value, productivity, location, and titling.

▪ Any taxes and transactional cost borne by the project.

▪ Financial assistance for the renewal of the land ownership documents (certificate and land documents recognized as full title) for the residual area of the entitled persons' land.

▪ If the remaining affected land can no longer function for the specific use and utilization, the entitled party can ask for compensation for their entire land at replacement cost (Law No. 2 / 2012 article 35).

▪ Valuation of compensation conducted by a licensed independent property appraiser. It will be used for compensation payment by the GDE

II. Loss of Crops

2. Loss of crops Applies for land acquisistion and land clearing

Owners regardless of land tenure status (with certificate of recognizable rights, informal dwellers, occupants) 29 AHs

▪ Annual crops: compensation will be paid based on prevailing market rates.

▪ Perennial crops: compensation at replacement cost taking into account crops’ productivity and age.

▪ No deduction of depreciation for the valuation of crops.

▪ Valuation of crops will be determined by independent appraiser.

▪ 90 days advance notice before harvesting / land clearing.

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ENTITLEMENT DETAILS

III. Economic Losses

3. Loss of arable land for farming Applies to land clearing

People who have leased / occupied GDE land for farming. 23 AHs

▪ Cash compensation for loss of crops income equivalent to a minumum of one year of net product market value

▪ Loss of income allowance will be determined by an independent appraiser.

▪ 90 days advance notice before harvesting / land clearing.

• All cultivation activities end of February 2020, after compensation delivered

▪ APs are allowed to harvest prior to land clearing.

IV. Temporary or Permanent Impacts on Non-land Assets during Construction

4. Temporary or permanent impacts due to construction.

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

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

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

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

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

▪ 30 – 60 days’ notice given to land owners before land is used temporarily by contractor(s).

▪ This agreement should be stipulated in the contract / agreement with civil works contractor(s).

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

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

▪ No rental fee for the period of the impact.

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

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ENTITLEMENT DETAILS

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

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

Other Appraisable Losses

7. Transaction cost Applies to land acquisition and land clearing

Entitled party who has lost land and non-land assets regardless the formal legal rights to land.

▪ Allowance to cover administration cost, renewal of land ownership for residual land, land clearing.

▪ Valuation will be determined by independent appraiser.

8. Compensation for waiting period (interest) Applies to land acquisition and land clearing

▪ Cash compensation based on risk-free interest, Government bank interest.

▪ Valuation will be determined by independent appraiser.

9. Loss of resource base (high risk of impoverishment) Applies to land acquisition and land clearing

▪ One household member per AH given the opportunity for employment in project related job during construction.

▪ Participation in livelihood restoration program (LRP).

▪ LRP will be integrated with GDE CSR / ComDev Program.

10. Unanticipated impacts or losses

▪ Compensation for any damages to the properties, based on prevailing replacement cost

▪ Provisions of mitigating measures shall be mitigated and documented based on project principles set forth in this RP

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C. Valuation of Assets 100. As stipulated in the regulation, valuation of assets both for acquisistion of private land and land clearing will be determined by independent appraisal. Land acquisition assessment applied the Indonesia Valuation Standards 204 (SPI 204). The bases of assessment are: (i) Fair Replacement Value–this value can be understood as a value based on the interests of the owner (the value to the owner);42 (ii) Market value equivalence;43 (iii) non-physical losses caused by the compulsory right relinquishment of property owner;44 (iv) property ownership is not limited to ownership rights, but can be interpreted as control, management and use of property in accordance with applicable laws and regulations or according to the agreed scope of assignment; (v) valuation date is the announcement date, and the date of site determination for development for public interest in accordance with the applicable legislations; (vi) value adding should be calculated based on the risks incurred from owner’s potential losses. The adequate replacement value must be higher than Property Market Value or at least equal to the compensation transaction value of similar property (if the comparator is similar property from a compensation transaction). 101. Compensation assessment in this standard includes but not limited to: (i) the construction of resettlement; (ii) education and motivation programs; (iii) provision of working facilities; and iv) business facilities compensation. Assessment approach is specified in the detailed SPI 204 (PPI 04).

Table 17. Assessment Approaches Using Indonesia’s Valuation Standards

Valuation object Calculation basis Approach Remark

Physical: Land or land & structures

Market and Non-Market

Market & Income

Structure &/or Complementary Facility

New replacement cost with adjustments

Cost In principle, valuation standard set by Independent appraisers’ association does not apply depreciation for physical condition of the affected building. Depreciation deduction for affected structures, will be given back to the entitled parties in the form of premium rate

Crops Markets & reasonable cultivation calculation norms

Income With the Discounted Cash Flow method for one cycle

Market For non-commercial plant, using references from relevant agencies.

Cost Immature crops

Non-Physical: Adequate replacement of the loss on right relinquishment from landowners who will be given a premium

Market and non-market

Income Cost

Based on applicable laws and regulations Losses due to termination or closure of business premises.

42 Value to the owner is defined as the economic benefits derived from the possession or ownership of a property. 43 The market value is one of the basis for value determination by taking into account limited or entirely absent data

market. This market value can be compared with the value based on the potential use (without looking at the benefit of land acquisition plan for the public interest).

44 Non-physical loss is other losses, as referred to in Law No. 2/2012, Article 33 f and its elucidation, applicable or according to the agreed scope of Tenure.

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Valuation object Calculation basis Approach Remark

Loss of income due to loss of acccess to arrable land for farming can be considered for more than one cropping cycle to 2 years

Loss of job or loss of business, including profession shift.

Additional compensation calculated based on:

- potential income45

- income for the last

month46

e.g.: fish farmers, restaurants, & workshops - if no other provisions, can be considered for an average 3 months for business & 6 months for the professional shift

Emotional losses (solatium)

e.g.: 5% - 30% from the market value of homes (land & building) as stipulated in these guidelines with the agreement of the assignor.

Transaction cost Based on socio-economic study conducted by expert consultant or applicable laws & regulations

Cost • Cost of moving

• Cost of clearing

• Tax associated costs

• Cost of Certificate of Land Deed Official (PPAT)

Waiting period Compensation (interest)

Based on the risk-free rate, or the government bank deposits interest

Based on applicable laws and regulations

Loss of residual land Market Market data

Other physical losses Reparation cost Cost

102. As per SPI 204, loss of crops income due to land acqusistion or land clearing will be valued with net product market value of the crops for more than one cropping cycle to two years, based on type of crops, soil fertility and avalability of replacement arable land47.

D. Special Assistance to Severely Affected and Vulnerable Households 103. Vulnerable AHs will be given preferential opportunity for employment in Project-related jobs. GDE will identify the project related jobs and offer the vulnerable groups with jobs. Social Safeguard Staff in Dieng unit and PMU will ensure that all of the vulnerable households will get all information easily and secure all their compensation and assistance prior to land clearance. 104. Severely affected and vulnerable AHs are entitled to participate in a livelihood restoration program to help keep their livelihood better or at least the same as before project. Livelihood restoration activities were identified and prepared based on social impact assessment and in close consultation with the APs. The program consists of short-term livelihood economic

45 For business - net income plus the liabilities of business costs need to be paid for the transfer, such as the cost of

permanent employees 46 For shift in profession 47 Some practices on assessment for compensation of lost crops in toll road development project indicate that the

appraiser will take a maximum value of 2 years of harvest income with consideration of one year for farmers to get a replacement of arable land , and another one year to assist the farmers to meet the income before the land can produce an optimum harvest. Minimum the appraiser will recommend loss of crops income equivalent to one year of net product market value from the arable land.

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productive activities and a reorientation of GDE’s Community Development Strategy and Program. The program will be expanded to the communities around projects areas as part of sharing project benefits among the GDE neighboring communities and as a vehicle for implementing remedial measures for temporary impacts during construction. The detailed scheme, target participants, timeline, and estimated budget are described in the following chapter.

105. Gender strategy. The following measures were / will be adopted to address gender issues as well as for other vulnerable sectors in this sub-project:

(i) In conducting the Detailed Measurement Survey and consultations on resettlement activities, both women and men will participate in the discussions. Elderly and disabled will also be included (may be by representation);

(ii) Any meeting and or consultation will be held at time and venue convenient for women to ensure at least 30% women participation;

(iii) Women will be given equal chance in getting hired for unskilled work and receive equal remuneration for the same work as the men;

(iv) Women, the elderly, and disabled will be prioritized in livelihood restoration program to be provided during RP implementation.

(v) Disaggregated monitoring indicators by gender and vulnerable groups will be developed for monitoring social benefits, economic opportunities, livelihood, and resettlement activities; and

(vi) Women will be present in Grievance Redress Committees (GRCs).

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VIII. LIVELIHOOD RESTORATION

106. The Dieng-2 Sub-project recognizes the importance of ensuring that livelihoods are restored (or ideally improved) for all landowners and users impacted by the projects land acquisition process. It has identified that a total of 24 affected households are currently deemed potentially severely affected, and a total of 14 are deemed vulnerable48 and as such, in addition to the compensation provided, AHs will be provided with additional assistance from the sub-project.

107. Methodology. In order to determine appropriate livelihood restoration activities, an assessment was conducted of the economic situation in Dieng, of Karang Tengah Village, and of the AHs themselves.

A. Summary of Livelihood Restoration Assessment 108. The Gross Domestic Product (GDP) of Kabupaten Banjarnegara and Wonosobo is dominated by agriculture, forestry and fisheries businesses. In the Dieng area, potato is the major agricultural produce. Potato was a boom crop in the Dieng area in the 1980s-90s leading to massive extensification (along the slopes and replacing forested areas) as well as intensification. The Dieng landscape is dominated by potato mounds. As well, the financial and agro-chemical industries have grown apace in the area. However, due to a number of factors, profitability of potato production has declined over the last 20 years. But farmers remain trapped in a continuous debt-driven cycle of potato cultivation which is becoming more and more risky leading to more and more loan defaults. There is a documented dynamic in Dieng where land ownership is growing in the hands of a few, while weaker and less competitive farmers lose their land and homes and are forced into farm labour or to migrate out of the Dieng highlands to the less profitable lowland areas49.

109. Apart from potatoes, farmers also grow a combination of temperate vegetables (cabbage, carrots, leeks, and spring onions). An endemic fruit called carica (a type of papaya) is now widely cultivated along the edges of potato and vegetable plots. This fruit is normally stewed in syrup before it is consumed. Many carica processing home industries have grown up in the area. The product is sold in Dieng, Wonsobo town centre, and to other provinces. The production of potato crisps and crisps from other produce such as cassava and yam is popular for home consumption as well as for sale. An endemic herb called purwaceng is also processed and sold as an herbal product or combined with coffee and tea as a beverage. While the Kabupaten Tourism Agencies provide training for starting-up of such small-scale food products businesses, the respective Kabupaten Health Agencies monitor and issue licenses (PIRT) for the production of home-made food products.

110. Another important economic sector in the Dieng Plateau is tourism. This has contributed to the establishment of many homestays in specific locations around Dieng.50

48 All vulnerable household are also potentially severely affected. 49 Santoso, Hery (2019). (i) “Dieng – Perubahan Ekologi, Proses Produksi dan Identitas.” (a power point presentation)

(ii) “Kejayaan dan Ketersingkiran. Proses Diferensiasi di Kalangan Petani Kentang di Dataran Tinggi Dieng”, and (iii) “Pembentukan Relasi Kapitalis dalam Proses Produksi Kentang di Dieng.” (2019)

50 e.g. Dieng Kulon where ancient Hindu temples are located, Sembungan Village – the highest village in Indonesia from where tourists trek up a further half an hour to catch the sunrise panorama from Sikunir Peak, the Sikadang crater and many other sites. Apart from homestays, many small businesses have started up to cater for the tourist market – tour guiding, food outlets, shops and stalls selling souvenirs and handicrafts, shops and counters selling

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111. A number of reports have been prepared and activities conducted which have produced information relevant for the formulation of livelihood restoration measures for local communities in the Dieng Geothermal Work Area (Wilayah Kerja Panas Bumi Dieng). These are: (i) a social mapping study; (ii) consultations and FGDs with the APs and Stakeholders conducted between 18-26 March and 9-17 September 2019;51 (iii) gender action plan related to women’s access and participation in income and livelihood restoration.52

112. While most of the concerns raised during the first round of community consultations (18-26 March 2019) were about negative environmental and construction related impacts. However, the following points were recorded during the second round of community consultations (9-17 September 2019):

(i) Both men and women in all the 6 villages are keen to obtain information about skilled and

unskilled job opportunities as well as business opportunities from Geo Dipa Unit 2 project, and to be invoived in projects. Women participants said that currently there is lack of information about job and business opportunities and requested that information on job and business opportunities should be disseminated using various media such as flyer, banner, and WhatsApp application. A man in Bakal Village added that information disseminated through flyers, bannesr and WhatsApp should use simple language. They asked GDE prioritize local people/neighboring communities for work at GDE and information preference through village offices, not “paguyuban” or other intermediaries.

(ii) Training and mentoring on mechanic and welding for youth has been design by GDE’s to give more skill which will enable and empower youth to work in non-farming sector, including opportunity to work in GDE Dieng unit as skill worker.

(iii) Participants in general affirmed that they have received some direct benefits in the form of GDE’s on-going ComDev program, but they expected GDE to continue providing community development support for education, youth programs, waste management and sustainable environment development, SMEs training and inputs.

(iv) Decline in drinking water quality (potential contamination) and decrease in water supply during dry season was articulated by participants from Kepakisan, Sikunang, Dieng Kulon and Pranten. They requested GDE to provide water supply program to address this issue.

(v) Various other suggestions related to Geo Dipa Community Development Programs were articulated: ▪ Focus on sustainable environment programs in particular waste management, and

renewable energy training programs. ▪ community development programs should include monitoring activities, including

monitoring of previous tree-planting activities which are now left abandoned. ▪ provision of early education/preschool. ▪ improvement of roads and bridges.

113. In addition, the SES carried out over 14–23 August 2019 interviewed 7 successful local entrepreneurs and conducted focus group discussions (FGDs) with all affected households as

locally produced food products. The Dieng area also features a number of annual events which draw in both domestic and international tourists – the Dieng Cultural Festival (early August) being the most popular.

51 Most of the concerns raised during the first round of community consutations were about negative environmental and construction related impacts. The following inputs were recorded during the second round of community consultations:

52 Gender Analysis (and Gender Action Plan), May 2019 – prepared by ADB staff gender consultants at ADB-IRM following the above-mentioned public consultations.

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well a number of local community members with regard to potential alternative livelihood activities, and preferences.

114. A livelihood restoration assessment which reviews available secondary as well as primary data is presented as Appendix 17. The following sections present the main results of the assessment. Based on a number of unanticipated but critical issues that emerged from the review, the scope of the assessment expanded to generate a strategic recommendation for reorienting the Community Development (ComDev) program so as to be more attuned and responsive to the bigger socio-economic issues in the area.

115. Overall Strategy. At FGDs conducted on 22 and 23 August 2019, both heads of AHs as well as their wives insisted that they only know how to farm (viz. potato and vegetable cultivation) and are unwilling to adopt new livelihood activities.53 In response to this, (i) entitlements for offsetting resettlement impacts will include a sufficient quantum of compensation, and include GDE facilitation in securing alternative plots of land for AHs to lease in order to continue their current livelihoods. (ii) In addition, AH members will be prioritised to fill upcoming job and labour vacancies at GDE Dieng, and to receive scholarships, and (iii) young working age members of AHs (both men and women) will be prioritised for inclusion in a number of income restoration activities that will be programmed over period 2020 – 2022.

116. Compensation. The quantum of compensation will include a transaction period of up to 12 months in order to secure alternative land to purchase or lease from the time they vacate leased GDE land or relinquish acquired land to GDE. In effect, as the subject has already been broached during the FGD session of 23 August 2019 and stakeholder consultations conducted over 11-13 September 2019, AHs will have from September 2019 to January 2019 (4 months) to identify and secure alternative land to lease or purchase. GDE will assist all tenant farmers to secure alternative land for lease by March 2020. While this comes under the “compensation entitlement”, this essentially constitutes the first part or layer of the income restoration strategy.

B. Livelihood Restoration Strategy & Assistance Package 117. Employment at GDE Dieng. In the short term, the second part of the income restoration strategy will be to prioritise AH members for employment in sub-project activities (fulfilling standard requirements of the plants or the new construction). Information preference through village offices, not “paguyuban” or other intermediarie ,.54 As a longer term measure, scholarship opportunities will be prioritised for potential children in AHs in order to prepare them to fill future HR needs. This will be synchronised with long term HR strategy for the Dieng Unit. That children from AHs receive scholarships will alleviate part of household financial burden for children’s education (equivalent to the outcome of a positive livelihood restoration intervention).

118. Livelihood Restoration Activities. Based on the FGD with the Youth Group (Karang Taruna) and younger community members of Karang Tengah Village (which included young AH members) on 21 August 2019, livelihood restoration (or development) activities will be programmed under the ComDev program for period 2020 – 2022 to target younger family members of affected households who are not as keen as their parents on earning a living solely from agriculture. This will enable and empower young AH members to contribute to overall household income restoration. The proposed activities are presented in Table 18. The same

53 In the case of the women, they claimed that they would rather work as farm labourers in the event they/their

households lose access to (rented) productive land. 54 Similar opportunities will also be given to 4 land lease coordinators

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package will also be made available to approximately 104 households in 6 villages so as to generate project benefits for the more vulnerable members of the community and/or those who experience unexpected impacts during the construction phase. AH members will be given first priority to participate in one or more of the activities over a 3-year period (2020-2022). This time-frame will allow for social preparation (engagement, extension, identification of potential clients) and establishing a good foundation for the income restoration activity (training, provision of equipment, obtaining of permits – if necessary, facilitating access to micro-finance), development, and achieving self-reliance (kemandirian) stages of micro-enterprise development. A value-chain (business model development) study will also be financed in 2020 to support marketing of locally processed products. All LRP activity packages will include activity-specific facilitation services which will also provide extension55 concerning livelihood diversification and security.56

119. Social preparation. The Dieng-2 social safeguards personnel will work with the Dieng Unit PR officer in consulting and collaborating with respective Village Governments to identify, select and prepare the various LRP activitiy target groups or persons for participation in annual ComDev activities. Discussions (on 30 August 2019) with an NGO working in Dieng (Inclusive Social Development Initiative UIN Kalijaga, Yogyakarta) highlighted an important lesson: the community facilitation and development approach should factor in religious aspects, given social conditions in the Dieng area.

Table 18. Livelihood Restoration Activities

TYPE OF ACTIVITY TARGET

PERSON / GROUP

Number

Severely AHss and vulnerable AHs

GDE’s Neighboring

Communities57

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

AH members, community members

24 Vulnerable/Severely HH members from Karang

Tengah and 4 coordinators

30 community members

from 6 villages

2. Scholarships and board and lodging allowance

Students from AHs

24 students. 30 students from 6 villages

3. Value chain analysis, development for carica processing and marketing (including permits/certification).

women Value chain analysis will benefit all carica home

industries. 24 Vulnerable/Severely

HH members

6 groups in 6 villages

(5-7 people per group)

– 30–42 people

4. Value chain analysis and development for processing and marketing of potato crisps and crisps from tubers (cassava, yam, sweet potato) including permits (certification)

women

Value chain analysis will benefit all similar home

industries

24 Vulnerable/Severely HH members

1 group per

village (6 people per

group) – 36 ppl

55 Extension is a process of working with rural people in order to improve their livelihoods. This involves helping farmers

to improve the productivity of their agriculture and also developing their abilities to direct their own future development. (FAO)

56 Household livelihood security is defined as adequate and sustainable access to income and resources to meet basic needs (including adequate access to food, potable water, health facilities, educational opportunities, housing, time for community participation and social integration). Livelihoods can be made up of a range of on-farm and off-farm activities which together provide a variety of procurement strategies for food and cash. (FAO).

57 Vulnerable households.

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TYPE OF ACTIVITY TARGET

PERSON / GROUP

Number

Severely AHss and vulnerable AHs

GDE’s Neighboring

Communities57

5. Training, mentoring for the following: a) mechanic, b) welding, c) sewing d) craft

Various

24 Vulnerable/Severely HH members

30 persons for types of training

(from all 6 villages).

120. In collaboration with the Dieng Unit PR officer, the Dieng-2 social safeguards and PR supervisor will support implementation of LRP activities. The Dieng-2 Unit of the PMU will monitor progress and results of LRP activities on a semi-annual basis. End-of-year M & E will evaluate performance and provide recommendations for achieving RP targets of improving living standards of AHs.

C. Long Term Re-orientation of ComDev Program

121. The proposed approach for generating benefits for local communities under the Project is as follows:

(i) Expand the Livelihood Restoration activities to also reach other community members (See the last column of Table 18). This is to promote a perception of fairness among on-lookers.

(ii) Program specific activities that were clearly raised during the September round of community consultations. This will include:

a. Provision of 12 new wells (2 wells per village) as an immediate response to potable water supply issues (to be implemented in 2020).

b. Provision of periodic free health screening and follow-up medical services (from 2020 onwards), and

c. Consolidation of waste (garbage) recycling, training and marketing of products for an existing group in Sikunang Villages (2020).

(iii) Reorientation of GDE’s ComDev strategy and Program via institutional strengthening of Village Governments. Increase critical awarenss of village governents and village level activists regarding livelihood security and ecological degradation issues, and to empower village governments to be able to undertake strategic planning, and to feed outputs into the annual government development planning process (Musrenbangdes) as well as back to inform GDE’s ComDev programming.

(iv) Implementation of new livelihood security solutions based on (iii). 122. The main activity identified for reorienting GDE’s ComDev Program in order to become more strategic and less philanthropic is strengthening of local Village Government in development planning and budgeting by developing a geo-social-spatial information system. (. The instrument developed for this is based on GOI Law no. 6 / 2014 concerning Villages, and Minister of Villages, Development of Isolated Villages, and Transmigration No. 16/2018 concerning priority for utilization of Dana Desa funds for 2019.

123. Strengthening of the bottom-up/participatory planning process is meant to create greater critical local awareness of the inevitable declining state of potato agriculture, diminishing carrying capacity of the fragile highland eco-system, and the systemic process of accumulation and dispossession, in order to advocate structural changes, and propose more strategic development

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interventions that will help transform local livelihood strategies into more sustainable ones that are able to sustain levels of welfare and also rehabilitate or at least stabilize degraded eco-systems. It should be ensured that recommendations from the final climate change assessment 58 (to be shared with the PMU) feed into this process.

124. The on-the-job training process for this exercise will take 4 months per village. It will be conducted by specialist NGO services have experience introducing and conducting the necessary geo-social-spatial training at village-level. TORs are provided in Appendix 18.

125. The output of the exercise will be a web-based geo-social-spatial information system (with dashboard) established and able to be managed by the trained village cadre, a publication which Village Governments may use to communicate with Kabupaten, Provincial Government, development partners and other stakeholders. If the activity in each village may be successfully completed before August 2020, the outputs may feed into the annual Government development planning and budgeting process (Musrenbangdes 59 ), update the village medium-term development plan (RPJMDes60), prepare village development work plan (RKP61), as well as inform GDE ComDev annual programming. New activities that are more strategic in responding to community needs will enable better coordination of development budgeting under village budget (APBDes62) and ComDev program budgeting. If the process cannot be completed before August 2020, then outputs may feed into the 2021 planning and budgeting cycle. An updating process will be conducted on an annual basis to generate progressive annual plans.

126. Proposals that emerge from this process that are directed towards the ComDev program may be accommodated as part of the reorientation of ComDev approach towards more responsive, strategic, and empowering assistance to local communities. An indicative budget of Rp. 300 million / village / year has been preliminarily estimated 63 to finance these new activities for period 2021-2024. Definitive annual budget allocation and total number of beneficiaries will depend on the new activities generated by geo-soscial-spatial information system that will be taken up by the re-oriented ComDev program.

D. Implementation Schedule

127. The implementation schedule for the livelihood restoration / enhancement, ComDev reorientation and new livelihood security solution activities constituting a Community Development program (to be financed under the Dieng-2 sub-project) is presented in Table 19.

E. Estimated Budget

58 Mutually beneficial conservation and water sharing measures between the geothermal proponents and local

communities in farming. A water for geothermal products/services exchange program could be explored; the GDE conducts a series of capacity building on climate smart agriculture (e.g., water use efficiency and use of drought resistant species in crop production, new geothermal applications for agro-aqua-industries, and water supply forecasting and sharing, in exchange for GDE support or geothermal resources (e.g., steam, hot water, greenhouse development) for the incubation of new livelihood opportunities for agri-aqua based MSMEs

59 Musyawarah Rencana Pembangunan Desa 60 Rencana Pembanguan Janka Menengah Desa 61 Rencana Kerja Pembangunan 62 Anggaran Pembangunan Belanja Desa 63 based on consultations concerning annual ComDev budget allocations with the PMU / CORSEC.

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128. Table 20 provides the estimated budget for the Livelihood Restoration and ComDev Program to be financed under the Dieng-2 expansion sub-project. The total budget for period 2020-2024 is approximately IDR 17.463 billion (US$ 1,229,831).

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Table 19. Implementation Schedule for Livelihood Restoration / Enhancement and new ComDev Activities:

No Step/Activity

2019 2020 2021 2022 2023

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1 Finalize LRA and ComDev packages

2 Prepare budget for LRP activities

3 Social preparation (identification/formation of target gorups)

4 Implementation of LRP

4.1. Training

4.2. Delivery of equipment/inputs

4.3. Access to finance (if necessary)

5

Implementation of LRP and enhancement activities (Development and Growth) for 30 AHs and 110 vulnerables HHs in 6 villages

6 Procure services of consultant/NGO for developing geo social spatial planning instrument

7 Implementation of ComDev activities

7.1. Digging and construction of wells (12 wells , 2 wells each villages)

7.2. Survey and design of water supply rehabilitation for 6 villages

7.3. Rehabilitation of water supply for 6 villages

7.4. Consolidation of garbage recycling activities for one group in Sikunang Village

8 Provision of free health screening and follow up services (100 households)

9 Conduct geo social spatial planning instrument and method to strenghten local village developing planning capacity

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10 Planning and budgeting of annual development activities for APBDes and GDE Comdev

11

Implementation of new livelihood security solutions (generated by program no 9) under the Community Development Program

12 12.1. LRP / ComDev mentoring evaluation and reporting (incl. Outcome)

12.2. Corrective action

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Table 20. Cost Estimates for Livelihood Restoration Plan and ComDev Reorientation Program under the Dieng-2 Expansion sub-project.

No.

Category / Activity Target Location 2020 2021 2022 2023 2024 TOTAL

(Rp. million)

A. Adjust HR strategy to create more opportunities for hiring local people (and to create better buy-in from the community)

1 Priority to members of affected households for suitable job vacancies (2020 onwards) for which they qualify.

24 AHs for 3 year period.

Karang Tengah

4 coordinators Karang Tengah

30 HHs each from 6 villages/year

6 villages *

2 Identification, scholarships and training for potential youth in skills and higher education required for operational stage of Dieng-2 and Dieng-3 (2020 onwards).

24 children from AHs for 5 years

Karang Tengah

240 240 240 240 240 1,200

30 children for 5 years 6 villages * 300 300 300 300 300 1500

B. Livelihood Restoration & Ennhancement

3 Carica processing and marketing

a) AHs 2 groups (12-14 women)

Karang Tengah

640 14

654

b) Project Benefits 42 women 6 villages * 245 497 759 21

1,522

4 Food produce processing and marketing

a) AHs 3 groups (18 women) Karang Tengah

640 18

654

b) Project Benefits 54 women 6 villages * 640 658 658 18

1,974

5 Vocational training and equipment

a) AHs 24 youth Karang Tengah

744 24

448

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No.

Category / Activity Target Location 2020 2021 2022 2023 2024 TOTAL

(Rp. million)

b) Project Benefits 60 youth 6 villages *

884 66

950

C. Community Development (Regular)

6 Digging / construction of 12 wells 2 wells / village 6 villages* 1,800

1,800

7 Free medical screening and follow-up

100 people 6 villages * 350 350 350 350 350 1,750

8 Consolidation of waste (garbage) recycling (training, marketting)

6 groups 6 villages * 300

300

D. ComDev Strategy & Program Reorientation

9 Specialist NGO Services for introducing geo-sosial-spatial planning method to Village Governments **

60 Village Cadres (Village Govt., LKMD,

BUMDes**) and 6 village communities

6 villages 1,667 720 737

3,124

Total

7,246 3705 3110 929 890 15,876

Contingencies (10%) 11

724.6 370.50 311 92.9 89 1,587.60

Grand Total (Rp. Million) 7,970.6 4,075.5 3,421.0 1,021.9 979.0 17,463.6

US$ 561,309.9 287,007.0 240,915.50 71,964.8 68,943.7 1,229,831.0

Note: * 6 villages - Karang Tengah, Kepakisan, Dieng Kulon, Bakal, Pranten and Sikunang

** LKMD (Lembaga Ketahanan Masyarakat Desa - Village Community Security Institution), BUMDes (Badan Usaha Milik Desa - Village Corporation)

** Strategic livelihood security improvement activities identified by this process (from 2020 onwards, on an annual basis) will be proposed for financing by Dana Desa / APBDes (Village Development Allocations) as well as annual GDE ComDev budgets. (Will include water supply system rehabilitation for 6 villages.)

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IX. Resettlement Budget and Financing Plan

A. Estimated cost for Resettlement

129. Costs related to social safeguards will be financed by GDE. The cost includes: (i) detailed costs for replacement of affected asset based on assessment by independent appraisal, (ii) budget for implementation of three-year livelihood restoration programs (2020-2022) and ComDev reorientation activities (2020-2024), (iii) operational costs, which consist of administrative cost and budget for a land acquisition and assessment team to handle objections/ grievances, land appraisal, and measurement. A contingency of 10% of total amount was applied. GDE will ensure that adequate funds are made available as and when necessary for the efficient and timely implementation of resettlement. 130. An estimated budget of IDR 21,351 billion (approximately US$ 1,503,592) is estimated for procurement of land through negotiated settlement willing seller-willing buyer, to compensate for loss of access to productive land, and to finance livelihood restoration activities as well as ComDev reorientation activites (which will generate project benefits for the local communities) . Table 21 provides the breakdown of the resettlement plus project benefits costs.

B. Procedure for Funds Flow Mechanism

131. Funding Mechanism for payment of compensation. Based on indicative amounts provided in the RP, the PMU will prepare a budget allocation for land acquisition for 2020 to be taken from State Equity Injection (PMN64). However, given the experience of previous land acquisition activities (2011) in Dieng, it may be prudent to allocate up to 2-3 times the indicative amount specifically for the land compensation component. Once negotiations are successfully concluded, the LAT will obtain account numbers for each of the affected household heads. In case AHs do not have bank accounts, the LAT will assist the AHs concerned to open bank accounts at the bank nearest to the village. Compensation funds will be transferred by GA division directly to the AH accounts. The same mechanism will be apply for land clearing compensation

132. Funding Mechanism for Livelihood Restoration and ComDev Reorientation. The planning and budgeting of Livelihood Restoration, and ComDev Reorientation & Program was prepared by the consultant in close collaboration with PMU. As such, the budget for 2020 activties is within the overall Community Development budget for 2020. Budgeting for subsequent years activities may refer to Table 21. Funds will be allocated by the PMU and channelled through GDE’s regular ComDev funding mechanism.

64 PMN – Penanaman Modal Negara.

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Table 21. Overall Cost Estimates For Resettlement Plan & Project Benefits No. ITEM TARGET 2020 2021 2022 2023 2024 TOTAL TOTAL SOURCE

OF FUNDS

(Rp. million / juta) (US$)

A. Land Acquisition and Clearing 1. From land owners 6 land owners 1,249 1,249

2. Compensation for 24 land users 24 land users 1,357 1,357

3. LCT and LAT Costs (4% of above) 104 104. Sub-total (A) 2,710 2,710 190,845 GDE

B. Livelihood Restoration Plan 4. Un-skilled labour employment 58 persons

5. Scholarships (and living allownances) 54 students 540 540 540 540 540 1,700

6. Carica processing (micro-enterprise) 56 women 885 511 759 21 2,176

7. Processing of local produce (micro-enterprise)

72 women 1,280 676 658 18 2,628

8. Vocational training 84 youth 744 908 66

Sub-total (B) 3,449 2,635 2,023 579 540 9,226 649,718 GDE C. Regular ComDev

9. Construction of 12 wells 6 villages 1,800 1,800

10. Free health screening and services 100 persons 350 350 350 350 350 1,750

11. Waste Recycling and Marketting 6 groups 300 300 D. ComDev Reorientation & Strategic

Program

12. Introduction of geo-sosial-spatial planning instrument and method to strengthen Village Governments’ development planning capacity*

60 Village Cadres65 And 6 village communities

1,667 720 737 3,124

Sub-total (C+D) 4,117 1,070 1,087 350 350 6,974 491,126 GDE

1 External Monitoring Agency 500 500 35,211 GDE

TOTAL 10,369 5,330 2,611 550 550 19,410 GDE

Contingencies (10%) 1,037 533 261.1 55 55 1, 941 GDE

GRAND TOTAL (Rp. million) 11,405.9 5,863 2,872.1 605 605 21,351 GDE

GRAND TOTAL (US$) 803,232 412,887 202,261 42,606 42,606 1,503,592 GDE

Note: * Strategic livelihood security strengthening activities identified by this process (on an annual basis, from 2020 onwards) will be proposed for financing by Dana Desa / APBDes (Village Development Funds) as well as annual GDE ComDev budgets. (Will include water supply system rehabilitation for 6 villages.)

65 VG – Village Government, LKMD (Lembaga Ketahanan Masyarkat Desa – Village Community Security Institution), BUMDes (Badan Usaha Milik Desa – Village Corp.)

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X. Institutional Arrangements

A. Institutional Arrangements

133. GDE will be the Executing Agency (EA) for the project which responsible for overall coordination, policy direction, and administration of project activities, including those related to social safeguards. A Project Management Unit (PMU) has been established for managing both the Patuha-2 and Dieng-2 expansion sub-projects. The Director of Operations will direct the PMU, which will be headed by a General Manager (GM) with overall responsibility for day to day management and supervision of the GPGP. The PMU will be the Implementing Agency (IA).. Figure 18 presents the organizational structure of GDE and where the PMU sits within the organisation. Within the PMU, the GM will be supported by an HSE and Safeguard Manager, who will in turn be supported by a Government Relation and Social Safeguards Assistant Manager with a Safeguards staff. The Government Relation and Social Safeguards Assistant Manager and staff will be responsible for and will assist the HSE and Safeguard Manager with respect to social safeguards compliance oversight, establishment of the LAT, activities assosciated with land acquisition, livelihood restoration and ComDev reorientation activities. 134. The PMU will have a unit at field sites. A Social Safeguards and Public Relation (PR) Supervisor will be designated at the Dieng Unit who will responsible for (i) supporting the government relation and social safeguards assistant manager for the day-to-day implementation and monitoring of safeguards plans, including implementation of the LRP, (ii) support the Land Acquisition Team (LAT) in implementation of the whole land acquisition and land clearing process, which will include facilitating consultations and disclosing information to affected communities and APs; and (iii) supporting the functioning of the grievance redress mechanism. The Social Safeguard and PR Supervisor will be a member of Grievance Redress Committee coordinated by the GA and Finance Staff. 135. A land acquisition team (LAT) will be established by the PMU/GDE Headquarters office for conducting the land acquisition process. The LAT will comprise members from relevant divisions at GDE head-quarter level (GA), and Unit-level (HC/GA and PR), and representatives from the Kabupaten Banjarnegara Land Office (KTR-BPN), the Camat of Batur’s office and Head of Karang Tengah Village. The government relation and social safeguards assistant manager at main office, and social safeguard and PR supervisor at the Dieng Unit will support this team, and ensure that other related IR requirements are fulfilled. 136. The PMU will collaborate with the Pengawal, Pendamping dan Pembangunan Nasional (TP4P) led by Attorney to ensure timely land acquisition. The GDE LAT will be responsible for coordinating with the TP4P. The LAT will also collaborate with Banjarnegara District Land Office (KATR/ BPN) to support the land acquisition process and update land ownership status. 137. A Project Management Consultant (PMC) will be recruited and will include an international and a national Social Safeguards / Resettlement specialist (TOR for the consultants are in Appendix 19). The consultants will support the Social Safeguards Assistant Manager, social safeguard staff in Dieng, GDE’s Land Acquisition Team and CSR Division in the implementation of land acquisition and involuntary resettlement activities, delivery of Livelihood Restoration programs, ComDev Reorientation activities, and monitoring. The consultants will also support the procurement of NGO/consultant services and be responsible for designing and conducting capacity building training for staff handling social safeguards at GDE HQ and units (GDE Dieng and GDE Patuha) prior to land acquisition and IR implementation. Training topics may include

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current Indonesia legal framework and ADB SPS on social safeguards, meaningful consultations and disclosure, income and livelihood restoration program, grievance redress mechanism, and

monitoring. Provision of technical guidance will continue during project implementation and most

importantly in relation to monitoring of compliance and success of efforts to ensure that AHs do not become “worse off”.

138. Project contractor(s) will be responsible for handling project impacts during construction including compensation for any damaged or lost assets set forth in the RP. This obligation needs to be emphasized in the project contractor’s contract. The contractor will also be responsible to receive and resolve grievances in collaboration with social safeguard staff at Dieng. The contractor may be a member of the grievance redress committee responsible to resolve complaints. The contractor will receive briefing on social safeguards or participate in social safeguard capacity building training. Table 22 shows the roles and responsibilities related with Resettlement Plan implementation.

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Figure 18. Project Organisational Structure for Resettlement Plan Implementation

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Table 22. Responsibilities concerning Resettlement Plan implementation

ENTITY RESPONSIBLITIES

Executing Agency (GDE BOD)

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

▪ Approval of RP

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

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

o Oversight of GRM operations.

▪ Establishment and management of the LAT.

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

▪ In coordination with GA, o Oversight of the whole land acquisition process based on UU

No.2/2012, and Presidential Decree No. 71 / 2012, and o Application for land use (pinjam pakai) process (IPPKH) from PT

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

▪ Procurement and management of specialist NGO / consultant services for development of geo-social-spatial information system for 6 Village Governments, and production of a Development Partnership Road Map for GDE Dieng and the local communities.

▪ Sumbmission of social safeguards semi annual monitoring reports to ADB

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

▪ Responsible for conducting internal social safeguards monitoring and compliance, including implementaion of LRP and reoriented ComDev program activities and reporting

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

▪ Support the PMU in the establishment of the LAT.

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

▪ Support the PMU in the procurement and management of specialist NGO / consultant services for development of geo-social-spatial information system for 6 Village Governments, and production of a Development Partnership Road Map for GDE Dieng and the local communities.

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

Social safeguards and PR Supervisor at Dieng Unit

▪ Support Government Relation and Social Safeguards Assistant Manager for the day-to-day implementation and monitoring of safeguards plans, including implementation of the LRP and ComDev Reorientation activities

▪ Support the GDE LAT in implementation of the whole land acquisition process, including (i). providing information, facilitating consultations and disclosing information to affected communities and APs, (ii) supporting land clearing process including DMS, independent replacement cost appraisal, compensation negotiations and compensation payment process

▪ Supporting the functioning of the grievance redress mechanism. The social safeguard staff will be a member of Grievance Redress Committee coordinated by the GA and Finance StafThe social safeguard staff will be a

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ENTITY RESPONSIBLITIES

member of Grievance Redress Committee coordinated by the GA and Finance Staf. She will be a

General Affairs (GA) ▪ Support PMU re: land acquisition process, and

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

Corporate Secretariat (CORSEC)

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

▪ Relay grievances sent to [email protected] to the PMU.

Project Management Consultant (Social Safeguard/ Resettlement Specialist

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

▪ Review and update safeguards documents, as needed.

▪ Design and provide training to GDE /PMU Social Safeguards personnel and the contractors on safeguards requirements as per ADB SPS 2009 and in how to bridge gaps between GOI laws and regulations and ADB SPS.

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

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

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

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

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

Land Acquisition Team (LAT – ad hoc) 66

▪ In coordination with the safeguards stafff at Dieng in conducting the whole land acquisition and resettlement process, including socialization and consultation, DMS, negotiation, and payment of compensation

▪ In collaboration with PMU HS Social and Enviroment Team in engagement and liaison with government team and other related parties (e.g. the Public Appraisal Office/ KJPP) during the land acquisition and resettlement process

▪ Assist the independent appraisal during identification and inventory of affected land and assets.

▪ Assist in handling complaints related to land acquisition process.

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

▪ In coordination with the Grievance Focal Person, resolve grievances during construction period

▪ Report grievance receipt and resolution to the GRM Focal Person at Unit level

▪ Forward grievances that cannot be resolved by the contractor to the Grievance Focal Person

66 Comprises relevant divisions from GDE HQ (GA) and GDE Unit (HC/GA, PR) and

mailto:[email protected]

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B. Capacity Building

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

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

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

iii. Meaningful consultations and grievance handling. iv. Orientation and finalization of detailed plans for livelihood restoration, plan for

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

v. Monitoring of resettlement development plan and reporting of compliance and achievement of social safeguards objectives (that AHs do not become worse off).

140. The PMU, handling overall oversight for the project, shall retain adequate staff for handling social safeguards with relevant qualifications and experience to be able to adequately design and deliver the RP

C. Implementation Schedule for RP

141. The Dieng- 2 sub-project land acquisition implementation schedule is presented in Table 23.

Table 23. Land Acquisition Implementation Schedule

No. STEPS TIMELINE A. PLANNING STAGE

1. Community Consultations (Sosialisasi, focus group discussions)

March, May, Aug. Sept. 2019

2. IOL, SES and independent Replacement Cost Study (RCS) Aug. 2019

3. Preparation of RP Aug. – Oct. 2019

4. ADB Review and Approval of RP Oct. – Nov. 2019

5. Disclosure of RP on ADB website Nov. 2019

B. IMPLEMENTATION STAGE Land Clearing

6. Establishment of Land Clearing Team End of November 2019

7. Verification and Validation of affected asset refer to IOL result prepare by ADB TA consultant

3rd week of Nov – 1st week of Dec 2019

8. Replacement cost assessment by independent appraisal 2nd -3rd week of Dec 2019

9. Negotiation with AHs Dec 2019-January 2020

10. Payment of compensation for loss of income allowance Jan - Feb 2020

Land Acquistion

11. Establishment of GDE Land Acquisition Team (LAT) January 2020

12. Spatial planning conformity March 2020

13. Socialisation and consultation with land owners regarding willingness to sell land.

March 2020

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No. STEPS TIMELINE

14. Verification of land ownership data by LAT with KATR BPN Banjarnegara

April 2020

15. Independent appraisal of compensation for all affected assets, and report completion

April – May 2020

16. Negotiations to get agreement on amount of compensation for land and affected crops.

June 2020

17. Measurement of sub-project boundary by BPN. July - Aug 2020

18. Update RP document and submit to ADB April – June 2020

19. ADB Review and Approval of updated RP July 2020

20. Disclosure of updated RP Sept 2020

21. Compensation payment to affected land owners Sept.- October 2020

C. LIVELIHOOD RESTORATION / ENHANCEMENT, CSR REORIENTATION, AND STRATEGIC LIVELIHOOD SECURITY ACTIVITES (COMMUNITY DEVELOPMENT) (see Table 18)

22. Implementation of Livelihood Restoration Plan (LRP) to address vulnerable and severely affected households

From 2020 onwards in parallel with construction works.

23. Implementation of ComDev Reorientation Activities and new Strategic Livelihood Security Activities (Community Development Plan to generate sub-project benefits)

From 2020 onwards in parallel with LRP and construction works.

D. MONITORING & EVALUATION

24. Semi annual monitoring and reporting periodic

25. External monitoring and reporting First study: In early 2021, 6 months - 1 year after completion of compenstation payments. Second study: In 2023 after completion of LRP implementation.

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XI. Monitoring and Reporting

A. Internal Monitoring

142. The implementation of the RP will be monitored regularly to ensure that it is implemented as planned and that mitigating measures designed to address adverse social impacts are adequate and effective. The objectives of monitoring are to assess (i) the implementation progress of the land acquisition and resettlement plan activities; and (ii) the impact of the plan activities on income and livelihood of the affected persons, including vulnerable groups.67 143. GDE Headquarters has established a dedicated Project Management Unit (PMU) at the Head Office to oversee project implementation; responsible for project management at implementation as well as monitoring and reporting. Government relations and social safeguards assistant manager under the PMU HSE and Safeguards Manager will be responsible for the monitoring and reporting of social safeguards compliance and will be supported by the PMC. The social safeguards and PR supervisor at Dieng will conduct day to day monitoring of the land acquisition and land clearing process to ensure implementation is in accordance with the action plan set forth in the RP, including LRP implementation. 144. Semi-annual monitoring reports will be prepared by the PMC in discussion and review by government and social safeguards assistant manager of PMU. PMU General Manager is tasked to submit semi-annual monitoring to ADB for review and disclosure. A semi-annual monitoring report template is provided in Appendix 20 and will be attached in the Project Administration Manual. Further monitoring will take place through ADB progress mission, mid-term reviews and others events as may be proposed by ADB and agreed with GeoDipa.

145. The scope of monitoring includes but not limited to:

(i) Compensation payments to all APs in various categories have been completed, according to the compensation policy described in the RP.

(ii) Delivery of livelihood restoration program and social support entitlements, includes delivery of assistance to lease coordinators.

(iii) Public information dissemination and consultations procedures (iv) Adherence to grievance procedures, and resolution of outstanding issues requiring

management’s attention (v) The benefit provided from the project (vi) Ability of AH’s to re-establish their livelihoods and living standards (vii) Assess if RP activities achieved the intended objectives; measure resettlement outcomes

against baseline condition

A. Internal Monitoring Indicators 146. Monitoring indicators adress the specific contents of the RP activities and entitlement matrix. Potential monitoring indicators, from which specific indicators, can be developed and refined as applicable to the pertinent social safeguard planning document, are set out in table 24.

Table 24. Suggested Internal Monitoring Parameters and Indicators

67 ADB.2019. ADB Source Book on Involuntary Resettlement. 2013.

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Monitoring parameters Suggested indicators

Consultation and Grievances

• Consultations organized as scheduled including meetings, groups, and community activities.

• Knowledge of entitlements by the APs (of women, men, and other vulnerable groups).

• Use of the grievance redress mechanism by the APs (of women, men, and other vulnerable groups).

• Information on the resolution of the grievances.

• Information on the implementation of the social preparation phase.

• Implementation of special measures for customary communities.

Communication and Participation

• Number of general meetings (for women, men, and other vulnerable groups).

• Number of meetings exclusively with customary communities.

• Percentage of women out of total participants.

• Number of meetings exclusively with women.

• Number of meetings exclusively with vulnerable groups.

• Number of meetings between hosts and the APs.

• Level of participation in meetings (of customary communities, women, men, and other vulnerable groups).

• Level and adequacy of information communicated.

• Information disclosure.

• Translation of information disclosed in the local languages.

Delivery of Entitlements

• Entitlements disbursed, compared with number and category of losses set out in the entitlement matrix.

• Disbursements against timelines.

• Identification of APs losing land temporarily, e.g. through soil disposal,

borrow pits, contractors’ camps, have been included.

• Timely disbursements of the agreed transport costs, income substitution

support, and any resettlement allowances, according to schedule.

• Provision of replacement land plots.

• Quality of new plots and issuance of land titles.

• Restoration of social infrastructure and services.

• Progress on income and livelihood restoration activities being implemented

as set out in the income restoration plan.

• Affected businesses receiving entitlements, including transfer and payments

for net losses resulting from lost business.

Budget and Time Frame

• Social safeguards staff appointed and mobilized on schedule for field and

office work.

• Capacity building and training activities completed on schedule.

• Achieving resettlement and customary community implementation activities

against the agreed implementation plan.

• Funds allocation for resettlement-to-resettlement agencies on time.

• Receipt of scheduled funds by resettlement offices.

• Funds disbursement according to the RP/DDR

• Social preparation phase as per schedule.

• Land acquisition and occupation in time for implementation.

Livelihood and Income Restoration

• Number of APs under the rehabilitation programs (customary communities,

women, men, and vulnerable groups).

• Number of APs who received vocational training (customary communities,

women, men, and vulnerable groups).

• Types of training and number of participants in each program.

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Monitoring parameters Suggested indicators

• Number and percentage of APs covered under livelihood programs (customary communities, women, men, and vulnerable groups).

• Number of APs who have restored their income and livelihood patterns

(customary communities, women, men, and vulnerable groups).

• Number of new employment activities.

• Extent of participation in rehabilitation programs.

• Extent of participation in vocational training programs.

• Degree of satisfaction with support received for livelihood programs.

• Percentage of successful enterprises breaking even (customary

communities, women, men, and vulnerable groups).

• Percentage of APs who improved their income (customary communities,

women, men, and vulnerable groups)

• Percentage of APs who improved their standard of living (customary

communities, women, men, and vulnerable groups)

• Number of APs with replacement agriculture land (customary communities,

women, men, and vulnerable groups)

• Quantity of land owned/contracted by APs (customary communities, women,

men, and vulnerable groups)

• Number of households with agricultural equipment

• Number of households with livestock

Benefit Monitoring • Noticeable changes in patterns of occupation, production, and resource use

compared to the pre-project situation.

• Noticeable changes in income and expenditure patterns compared to the

pre-project situation.

• Changes in cost of living compared to the pre-project situation.

• Changes in key social and cultural parameters relating to living standards.

• Changes occurred on customary communities and other vulnerable groups

benefiting from the project.

B. External Monitoring

147. The task of the External Monitoring Agency (EMA) will focus on the resettlement compliance and assessment of the degree of rehabilitation achieved by the APs in the year following RP implementation. Considering the high number of severely and vulernable APs and the concerns of APs regarding project impacts to their livelihood, the PMU will hire a qualified external monitoring agency to carry external monitoring and post-implementation evaluation. The terms of reference (TOR) for this purpose is shown in Appendix 21. Both the TOR for the EMA and the selection of the EMA will be referred to ADB for review. The EMA will conduct evaluation study twice; (i) first monitoring conducted 6 months to 1 year after compensation payment; and (ii) second monitoring after the LRP has completed. 148. The EMA will conduct the following activities;

i) Review the SES baseline data, and related indicators ii) Verify and document of negotiated land acquisistion iii) Assess the livelihood impact of the land acquisition/resettlement on the APs through

formal and informal surveys with the population in project areas affected and non-affected. The assessment should be inclusive of gender concerns and ADB policy.

iv) Assess longer term satisfaction with the valuation of assets and entitlements, timing of payments, fund availability and disbursements

v) Assess the involuntary resettlement safeguard compliance issues and if any significant

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involuntary resettlement issues are identified, a corrective action plan will be prepared to address such issues.

vi) Assess the long-term efficiency, effectiveness and sustainability of the land acquisition / resettlement program, drawing lessons for future resettlement policy formulation and planning and future RP planning and implementation

vii) Preparation of the evaluation report based on the assessment and incorporate all documents during the evaluation including meetings / interviews with the APs both men and women, evaluation instruments, etc.

149. If the findings of the study indicate that the objectives of the RP have not been achieved, the EMA will propose appropriate additional measures to help the severely affected APs rehabilitate themselves to at least their pre-project situation. The EMA will likewise provide recommendations for improving resettlement implementation in the future

Table 25. Suggested External Monitoring Indicators

Monitoring Indicators Basis for Indicators

1. Basic information on AP households

• Location

• Composition and structures, ages, education and skill levels

• Gender of household head

• Ethnic affiliation

• Access to health, education, utilities and other social services

• Housing type

• Land use and other resource ownership patterns

• Occupation and employment patterns

• Income sources and levels

• Agricultural production data (for rural households)

• Participation in neighborhood or community groups

• Access to cultural sites and events

• Value of all assets forming entitlements and resettlement entitlements

2. Benefit Monitoring

• What changes have occurred in terms of patterns of occupation, production, and resource use compared to the pre-project situation?

• What changes have occurred in income and expenditure patterns compared to the pre-project situation?

• What have been the changes in cost of living compared to the pre-project situation?

• Have APs’ incomes kept pace with these changes?

• What changes have taken place in key social and cultural parameters relating to living standards?

3. Restoration of Livelihoods

• Were valuations for all types of affected assets is based on replacement cost principles

• Were compensation payments free of deduction for depreciation, fees or transfer costs to the APs

• Were compensation payments sufficient to replace lost assets?

• Was sufficient replacement land available of suitable standard?

• Did income substitution allow for re-establish/restore livelihoods and living standards/

• Were affected public facilities compensated or replaced

• Have vulnerable groups been provided income-earning opportunities? Are these effective and sustainable?

• Do jobs provided restore pre-project income levels and living standards?

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Monitoring Indicators Basis for Indicators

4. Levels of AP Satisfaction

• How much do APs know about resettlement procedures and entitlements?

• Do APs know their entitlements?

• Do they know if these have been met?

• How much does the APs participate in the public consultation meetings to discuss and reach agreements on project potential impacts, compensation, assistance, and relocation?

• How do APs assess the extent to which their own living standards and livelihood been restored?

• How much do APs know about grievance procedures and conflict resolution procedures? How satisfied are those who have used said mechanisms?

5. Effectiveness of Resettlement Planning

• Were the APs and their assets correctly enumerated?

• Were any land speculators assisted?

• Was the time frame and budget sufficient to meet objectives?

• Were entitlements too generous?

• Were vulnerable groups identified and assisted?

• How did resettlement implementers deal with unforeseen problems?

6. Other impacts • Were there unintended environmental impacts?

• Were there unintended impacts on employment or incomes?

• Were there any unintended impacts on Geodipa?

C. Reporting and Disclosure

150. GDE/PMU is required to prepare semi-annual internal monitoring reports for submission to ADB. Internal monitoring reports are subject to review by ADB and posted on the ADB website and project website, if applicable. PMU through the General Manager Project Dieng shall disclose results of monitoring specifically to the affected communities/persons in summary form - status of the social safeguards planning document, information on benefits sharing, and corrective action plans, if any. Community disclosures will be in Bahasa Indonesia and posted at a location commonly agreed with AHs and village leaders. 151. External monitroing and post evaluation reports will be submitted by EMA to the PMU, and the PMU will submit the reports to ADB in english version for review. The final external monotoring report and post evaluation report will be posted on the ADB and Project websites.