120809 MINISTRY OF PUBLIC WORKS AND HOUSING REGIONAL INFRASTRUCTURE DEVELOPMENT AGENCY INDONESIA TOURISM DEVELOPMENT PROGRAM TECHNICAL ASSISTANCE COMPONENT ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK FINAL October 24, 2017 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 TABLE OF CONTENTS TABLE OF CONTENTS ....................................................................................2 LIST OF TABLES .............................................................................................4 LIST OF FIGURES ............................................................................................4 LIST OF ACRONYMS .......................................................................................5 EXECUTIVE SUMMARY...................................................................................6 1.0 INTRODUCTION ...................................................................................15 1.1 BACKGROUND........................................................................................... 15 1.2 SCOPE AND METHODOLOGY .................................................................. 17 1.2.1 Scope for the ESMF ...................................................................... 17 1.2.2 Methodology .................................................................................. 19 2.0 DESCRIPTION OF THE IPF COMPONENT.........................................19 2.1 IPF PROJECT ACTIVITIES ......................................................................... 20 2.1.1 Integrated Tourism Development Master Planning ........................ 20 2.1.2 Downstream Planning Documents ................................................. 22 2.1.3 Program Management Support...................................................... 23 2.1.4 Additional Studies .......................................................................... 23 2.2 INSTITUTIONAL ARRANGEMENTS .......................................................... 23 2.2.1 Implementing Agency for the IPF Project ....................................... 23 2.2.2 Implementing Agency for the ESMF Implementation ..................... 24 3.0 ENVIRONMENTAL, SOCIAL AND CULTURAL CHARACTERISTICS OF THE THREE DESTINATIONS .....................25 4.0 POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS OF THE IPF COMPONENT ................................................................................28 5.0 POLICIES AND LEGISLATIVE FRAMEWORK ...................................34 5.1 THE WORLD BANK SAFEGUARD POLICIES ........................................... 34 5.2 INDONESIAN REGULATIONS.................................................................... 35 5.3 COMPARISION OF INDONESIA LAWS AND REGULATIONS AND WORLD BANK SAFEGUARDS POLICIES ................................................. 38 6.0 INCORPORATING ENVIRONMENTAL AND SOCIAL CONSIDERATIONS BASED ON BANK OPS INTO THE ITMPS AND OTHER DEVELOPMENT PLANS ...............................................40 6.1 SAFEGUARDS IN INTEGRATED TOURISM MASTER PLANS ................. 41 6.1.1 Baseline Data Collection................................................................ 41 6.1.2 Determination of Development Opportunities and Constraints ....... 41 6.1.3 Formulation of Alternatives ............................................................ 42 6.1.4 Impact Assessment ....................................................................... 43 6.1.5 Awareness and Capacity for Implementation ................................. 43 6.1.6 Detailed Development Plans ......................................................... 43 6.1.7 Frameworks for Development of Social Safeguards Documents ... 45 2 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 7.0 ORGANIZATIONAL ARRANGEMENTS AND INSTITUTIONAL ASSESSMENT AND CAPACITY-BUILDING FOR IMPLEMENTATION OF THE ESMF .....................................................65 7.1 INSTITUTIONAL CAPACITY REQUIREMENT ........................................... 65 7.2 CAPACITY BUILDING PROGRAM ............................................................. 66 8.0 BUDGET FOR IMPLEMENTING THE ESMF .......................................70 9.0 MONITORING AND EVALUATION ARRANGEMENTS OF THE IMPLEMENTATION OF ESMF .............................................................72 10.0 GRIEVANCE REDRESS MECHANISM (GRM) ....................................72 11.0 PUBLIC CONSULTATION AND DISCLOSURE ...................................75 APPENDIX 1 TOR OF THE INTEGRATED TOURISM MASTER PLAN 79 APPENDIX 2 PROCESS FRAMEWORK ................................................... 126 APPENDIX 3 CONTENTS OF A LAND ACQUISITION AND RESETTLEMENT ACTION PLAN (LARAP) ..................................... 133 APPENDIX 4 OUTLINE FOR UKL-UPL AND AMDAL STUDIES .............. 139 APPENDIX 5 CHANCE FINDS PROCEDURE ............................................ 146 APPENDIX 6 INDIGENOUS PEOPLES CONSULTATIONS ...................... 147 APPENDIX 7 CONTENT OF INDIGENOUS PEOPLES PLAN (IPP) .......... 150 APPENDIX 8 SOCIAL ASSESSMENTS FOR INDIGENOUS PEOPLES ... 152 APPENDIX 9 DOCUMENTATION FOR PUBLIC CONSULTATION FOR TOR ESMF (MINUTES, ATTENDANCE LIST AND PHOTOS). ....... 153 APPENDIX 10 DOCUMENTATION FOR PUBLIC CONSULTATION FOR DRAFT ESMF (MINUTES, INVITATION LIST, ATTENDANCE LIST) .................................................................................................. 160 3 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 LIST OF TABLES Table 1: Indonesia's Tourism Competitiveness .................................................................................... 15 (Rank out of 141 countries in 2015 and 136 in 2017) ........................................................................... 15 Table 2: Functions of the Executing Agency and World Bank ............................................................. 24 Table 3: Overview of Locations as Described in ITMPs, With a Focus on Detailed Development Plan (DDP) ............................................................................................................................................. 26 Table 4: IPF Component Activities and Potential Environment and Social Impacts............................. 28 Table 5: World Bank Environmental and Social Safeguards and their Policy Objectives .................... 34 Table 6: Applicable Indonesian Regulations on Environmental, Social, and Land Acquisition Issues. 35 Table 7: Summary of Comparison between Safeguards Instruments Prepared under the Indonesian Environmental and Social Laws and Regulations and the World Bank Safeguard Policies which are Potentially Relevant in Preparing the ITMPs and Sectoral Plan ............................................. 39 Table 8: Laws and Regulations Relevant to the LARPF ....................................................................... 46 Table 9: Entitlements of Project Affected Persons ............................................................................... 52 Table 10. Instruments for the Land Acquisition and Resettlement Action Plan .................................... 54 Table 11. Ministry of Public Works and Housing Capacity Building Training Activities ........................ 67 Table 12. Tourism Ministry Capacity Building Training Activities ......................................................... 68 Table 13. Ministry of Environment and Forestry (MOEF) Capacity Building Training Activities ........... 69 Table 14. ESMF Implementation Budget .............................................................................................. 72 LIST OF FIGURES Figure 1: Process of Land Acquisition in the Investment Preparation Stage ........................................ 49 Figure 2: Process of Land Acquisition in the Investment Implementation Stage .................................. 50 Figure 3: Grievance Redress Mechanism ............................................................................................. 73 4 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 LIST OF ACRONYMS AMDAL Analisis Mengenai Dampak Lingkungan/Environmental Impact Assessment APBN Central Budget APBD Local Budget BAPPEDA Development Planning Agency at Subnational Level BKPM Badan Koordinasi Penanaman Modal/Indonesia Investment Coordination Board BPN National Land Agency DED Detailed Engineering Design DDP Detailed Development Plan EA Environmental Assessment ES Environmental Social Assessment ESMF Environmental and Social Management Framework ESSA Environmental and Social Systems Assessment GDP Gross Domestic Product GOI Government of Indonesia GRM Grievance Redress Mechanism ICT Information Communication Technology IP Indigenous Peoples IPF Investment Project Financing IPP Indigenous Peoples Plan IPPF Indigenous Peoples Planning Framework ISDS Integrated Safeguard Data Sheet ITMP Integrated Tourism Master Plan LARAP Land Acquisition and Resettlement Action Plan LARPF Land Acquisition and Resettlement Policy Framework LAT Land Appraisal Team LAC Land Acquisition Committee MAPPI Indonesian Society of Appraisers NGO Non-Governmental Organization PforR Program-for-Results PCR Physical Cultural Resources RIDA Badan Pengembangan Infrastruktur Wilayah (BPIW) / Regional Infrastructure Development Agency RKL Environment Management Plan RPL Environment Monitoring Plan SA Social Assessment SME Small Medium Enterprise SKPD Regional Working Unit TA Technical Assistance TOR Terms of Reference UKL-UPL Environmental Management and Monitoring Effort WB World Bank 5 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 EXECUTIVE SUMMARY The Government of Indonesia has decided to transform Indonesia’s economy using tourism as one of the main growth drivers. More specifically, it aims to achieve increased foreign tourist arrivals, domestic tourist visits, foreign exchange earnings, employment, and tourism competitiveness through accelerated development of ten priority tourism destinations. The government is preparing a tourism development program under the overall guidance of the National Tourism Coordination Team. For the government’s program, the Ministry of Tourism (MoT) will coordinate and the Ministry of Public Works and Public Housing (MPWH) will serve as the executing agency. They will achieve these goals by working with several Ministries and Agencies as implementing agencies, and bringing together APBN, APBDI, and APBDII. The government plans to sequence the development of priority destinations and decided to start the government’s program (the “program”) in 2017 in three of the priority destinations: Lake Toba in North Sumatra province, Lombok in West Nusa Tenggara province, and Borobudur-Yogyakarta-Prambanan in Central Java province and the Special Region of Yogyakarta. To support this initial effort, the government intends to apply for financing from the World Bank toward the cost of the Indonesia Tourism Development Program (the “Operation”), for which a combination of Program-for-Results (PforR, the “Program”) and Investment Project Financing (IPF, the “Project”) will be used. The PforR instrument will bring the needed results orientation, while the IPF instrument will finance critical consultants’ services for the technical assistance (program planning, management and capacity building) component of the Operation, following the World Bank’s fiduciary rules and guidelines. The Program consists of support to government expenditure programs in four Results Areas (RAs): (1) improve sustainability and tourism carrying capacity of selected destinations; (2) promote local participation in the tourism economy (skill and firm development); (3) enhance enabling environment for private investment and business entry into tourism; and (4) increase institutional capacity to facilitate integrated and sustainable tourism development. It is proposed to be supported by a US$180 million World Bank Loan, and approximately US$550 million in government financing using the PforR instrument. The technical assistance component (the Project), proposed to be supported by US$20 million IPF, consists of technical assistance to support the implementation of the Program. One characteristic of the PforR instrument is that environmental and social impact management for the Program is undertaken using the government’s safeguards laws, regulations, and procedures, supplemented with capacity-building and gap-filling activities identified in the Environmental and Social Systems Assessment (ESSA) prepared for the Program by the Bank. The Loan disburses against progress in the RAs, measured by pre- defined indicators (so-called Disbursement-linked Indicators). The IPF instrument, on the other hand, is subject to World Bank operational policies (OPs) for environmental and social safeguards. In the case of technical assistance operations, this means that all outputs must be compliant with the relevant safeguards OPs. When the full range of technical assistance activities is not known in advance, as is the case in this IPF, the approach to meeting that objective is to prepare an Environmental and Social Management Framework (ESMF). Activities that are judged to be likely to have significant adverse impacts on the environment and/or affected people in ways that are sensitive, diverse, or unprecedented are not eligible for the Financing, and are excluded from the Program (Bank Policy Program-for-Results Financing, para 9). Description of the Project The technical assistance IPF component of the Operation (“the Project”) has three main activities and a possible fourth one, each of which will be supported by one or more contracts for consultants’ services. Specifically, the IPF component will finance the development of the following through consultants’ services: 6 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Integrated Tourism Master Plans, • Downstream sectoral master plans, • Program Management Support including quality control, supervision, monitoring, reporting, and coordination, to ensure that Program implementation is in accordance with program objectives and is in compliance with the loan agreement, and independent verification of results, • Additional studies and technical assistance as needed to support Results Areas 2, 3, and 4, i.e., in SME and skill development and business environment improvement. Overview of the ESMF This document presents the ESMF for the IPF component. It is meant to provide guidance to the Regional Infrastructure Development Agency (RIDA, or Badan Pengembangan Infrastruktur Wilayah, BPIW) of the Ministry of Public Works and Housing (MPWH), for the incorporation of the requirements of the World Bank safeguards policies in the activities that are proposed to be financed under the IPF component. It also provides guidance for training and other capacity-building activities to strengthen implementing agencies at central and destination levels. The application of the ESMF applies varies with the type of activity. • In the case of Integrated Tourism Master Plans, the ESMF provides for “upstream” incorporation of the requirements of the OPs into the planning process, so that they are considered in selection of sites for various types of investments. For example, in the identification of “no-go zones” based on sensitivity of natural or cultural features; in the consultations with all stakeholders, including indigenous and vulnerable groups; etc. • In the case of sectoral plans financed by the IPF Project, the ESMF requires that outputs include a preliminary assessment of environmental and social impacts based on the World Bank safeguards policies and applicable Indonesian laws and regulations. The TORs for the ITMPs and sectoral master plans and other studies include the requirements specified in this ESMF; all the TORs should be discussed with and approved by the Bank. The key elements of the ESMF consist of: • Project description • Environmental, social and cultural characteristics of the three tourism destinations • Potential positive and negative impacts of the IPF component • Institutional, legal, regulatory, and policy framework: The Indonesian Laws and Regulations; the relevant World Bank’s safeguards policies; comparison of differences between the Indonesian Laws and Regulations and the Bank’s safeguards policies how such differences will be addressed to meet World Bank safeguards policy requirements for the implementation of the IPF • Requirements for incorporating environmental and social considerations based on World Bank safeguards policies into the ITMPs and other plans • Organizational arrangements, institutional assessment, capacity-building, monitoring and evaluation arrangements, and budget for implementation of the ESMF • Summary of stakeholder consultations The Regional Infrastructure Development Agency of the Ministry of Public Works and Housing (MPWH-RIDA) will be the Executing Agency for the Project. For the Project (and the Program), RIDA will be advised by a combination of a Steering Committee and a Technical Team. The Steering Committee is composed of Echelon 1 officers from each involved Ministry or Agency. It is co-chaired by the Deputy Infrastructure in the Ministry of National Development Planning 7 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 (BAPPENAS) and the Deputy Destination Development and Tourism Industry in the Ministry of Tourism. The Head of RIDA will be secretary of the Steering Committee. The Technical Team consists of tourism development Echelon II officials of each involved ministry or agency. It is co-chaired by the Director of Industry, Tourism and Creative Economy in BAPPENAS and the Deputy Assistant Infrastructure Development and Impacts of Tourism in the Ministry of Tourism. Head Strategic Area Development Center, RIDA will be secretary. The day-to-day responsibility for ESMF implementation (and for the environmental and social safeguard performance of the Program) is under RIDA. RIDA is the focal point for all matters relating to environment and social safeguards during the Project. Potential Environmental and Social Impacts of the Project Positive Impacts of Integrated Tourism Master Plans: The Integrated Tourism Master Plans (ITMPs) are prepared to avoid the negative impacts of unintegrated tourism development, which is that increased tourism can degrade the environmental and cultural resources on which tourism depends if necessary preventative measures and management arrangements are not put in place. ITMPs will provide guidance for pre-screening and identifying potential activities and associated risks that should be addressed in the planning process including potentially adverse indirect, induced or cumulative impacts resulting from tourism development ITMPs will help to inform all stakeholders and provide a vehicle for consultation to obtain stakeholder concerns and aspirations. They will minimize uncertainty and lack of transparency. The ITMP will also identify the priority programs needed to strengthen tourism activities at the local level and provide detailed recommendations for the preparation and revision of local and provincial spatial plans and sectoral master plans (if necessary). The in-depth analysis and stakeholder engagement in the ITMP will incorporate a bottom-up approach that was lacking in previous spatial analysis conducted in the priority tourism destinations. The ITMP is thus conceived as a coordination platform for the development of the tourism destination and as the instrument that will pave the way for effective and sustainable tourism development. Potential negative Impacts of Integrated Tourism Master Plans: The ITMPs may not be implemented at the desired standard, which would limit their effectiveness as guides for sustainable tourism development. Facilities constructed upon the recommendation of the ITMPs may have indirect or induced adverse impacts or cumulative impacts which were either not foreseen despite emphasis in the ITMP process on identifying them, not effectively managed, or both. Unplanned development induced by the provision of tourism facilities is a common example; it can create traffic congestion, generate effluents or solid waste that are not properly managed, and affect visual amenity. Local communities can be “left behind” when it comes to the benefits of tourism and their ability to participate effectively in its development, and may affect their traditions and cultures. Loss of land or of access to customary resources or sources of livelihoods are other potential impacts. Some visitors will engage in anti-social behavior, such as drug and alcohol abuse and sex tourism. Other examples of potential adverse impacts include: depletion of sensitive natural resources upon which tourism often depends; poor maintenance of the facilities after completion of construction; and lack of operating budget and capable human resources to manage the facilities, and their environmental and social impacts. Impacts of Downstream Sectoral Plans: By minimizing the risk of poor planning and low quality of downstream sectoral plans under the IPF component helps to integrate international standards for sustainability in tourism development and provides an opportunity for efficiency in resource use, targeting the poor and applying green approach for the sector development. It provides the necessary assessment of the potential environmental and social constraints and benefits. It also helps advise the government on the latest techniques and methods for sustainable development, such as improved resource efficiency, environmentally-sound 8 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 resource management, green building materials or ways to incorporate climate resilience in infrastructure, especially in sensitive and vulnerable tourism destinations. Impacts of Program Management Support Services: The Program Management Support Services impacts are positive. It will provide better solutions and incorporate better efficiency in delivering the necessary key deliverables for the Program. It also provides environmental and social mitigation measures for the assessment of each activity before the start of physical investment implementation or at its completion. It will eventually increase the quality and quantity of the deliverables for sustainable tourism development through central-local government coordination and public-private coordination. As part of the loan agreement, the PforR Program will also measure the regular reports made by the UNWTO Sustainable Tourism Observatories (STOs), or similar agencies, which are set up as part of the destination- specific monitoring mechanism. No negative impacts of the Program Management Support Services are foreseen. Impacts of Studies and Technical Assistance related to Program RAs 2–4: The potential impacts are positive. The studies and technical assistance related to the Program Results 2– 4 will provide better solutions and capabilities for skill and firm development and business environment improvements related to the tourism sector in the priority destinations. Advice on development of SMEs will include environmental, health, and safety requirements and guidelines. Comparison of World Bank Safeguards Policies and Indonesian Laws and Regulations The activities in the IPF component need to comply with both Indonesian regulations and World Bank safeguards policies. The goal is that all documents prepared under the IPF component will be compliant with Indonesian laws and regulations as well as the World Bank safeguards policies as indicated in the ESMF. With respect to the ITMPs, the TORs explain how this is to be done. The ESMF provides a comparison of Indonesian and World Bank safeguards policies focusing only on the World Bank policies that might be relevant in the types of activities for which the IPF will support. Many of the differences are related to the implementation of Indonesian laws and regulations in the preparation of UKL-UPL and AMDAL and the limited technical and institutional capacity to prepare and implement UKL-UPL and AMDAL; the differences between the Indonesian laws regulations and the Bank policies applicable to this project have been assessed. Table 7 provides the measures in the ESMF to fill address World Bank safeguards policy requirements that are not covered by Indonesia laws or regulations and their implementation. The IPF Project triggers several World Bank Safeguard policies including OP 4.01 on Environment Assessment, OP 4.04 on Natural Habitats, OP 4.11 on Physical Cultural Resources, OP 4.36 on Forest, OP 4.12 on Involuntary Resettlement and OP 4.10 on Indigenous Peoples. The ESMF requires that IPF outputs, particularly the ITMPs, be compliant with all relevant Bank safeguards policies, as listed in the Differences Analysis table. Incorporating Environmental and Social Considerations Based on Bank OPs into the ITMPs and Other Plans Because ITMPs, consisting of overall development plan for the entire tourism destination area and detailed development plans for existing and selected future key tourism areas within the tourism destination area (Annex 1), will include recommendations for infrastructure investments with the potential for adverse impacts, impact avoidance and mitigation should be part of the planning processes. This will be accomplished by incorporating the requirements of Bank safeguards policies requirements upstream, where they have maximum potential to prevent adverse impacts, in contrast to downstream when plans are fixed and designs are 9 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 proceeding, and the focus of safeguards shifts to mitigation. The steps for accomplishing this in ITMP preparation are elaborated in the ITMP Terms of Reference (TOR) and include: • Collection of comprehensive baseline data on the tourism destinations. • Analysis of baseline data to determine opportunities and constraints for tourism development, taking into account prohibitions and restrictions in Bank OPs and relevant sections of the World Bank Group Environmental Health and Safety Guidelines. • Formulation of alternatives. The ITMP Consultant will present at least three different spatial development scenarios and will assess environmental and social impacts of each in sufficient detail for them to be compared and a preferred scenario selected in consultation with all stakeholders. • Assessment of potential environmental and social impacts related to the preferred development scenario, at an appropriate scale and level of detail, taking into account cumulative and induced impacts, and a high-level mitigation and monitoring plan. Issues like resettlement and planning for indigenous peoples, if any are present in the planning areas, will be handled by means of a Land Acquisition and Resettlement Policy Framework and an Indigenous Peoples Planning Framework. • Prepare a capacity-strengthening plan and a community awareness-raising program to facilitate ITMP implementation. The Detailed Development Plans (DDPs) will provide dedicated planning guidelines to manage and control development. Planners will use the relevant sections of the WBG Environmental, Health, and Safety Guidelines. Elements of DDPs based on the application of the safeguards policies as identified in ESMF will include: • Environmental protection management plan that will provide guidelines to protect and restore natural areas • Cultural, religious, historic, and archaeological management plan that will provide guidance to protect valued features including Visitor Management/Crowd Control Plans for tourism objects with limited carrying capacity such as temples, heritage sites, and cultural villages • These will include among other things proposed institutional arrangements to monitor the condition of natural and cultural assets and to implement the plans for their protection • Environmental and social assessment, including cumulative and indirect and induced impacts as well as the efficient use of water in domestic, commercial, and industrial uses, the recreational use of rivers and lakes and green space, scenic vistas, and viewpoints guidelines • Social Management Plan or Community Development Plan that will provide guidelines to avoid or minimize potential social conflicts or adverse impacts due to the implementation of the development plan • Land Acquisition and Resettlement Framework to guide stakeholders in implementing the development plan in case of potential involuntary land acquisition and resettlement • Indigenous Peoples Planning Framework to guide stakeholders in implementing the development plan in case that activities potentially affect Indigenous Peoples Institutional Capacity Requirements The outputs/outcomes from the IPF activities, if and when implemented, may have a wide range of potential environmental and social impacts. MPWH as the Executing Agency is a well-established government agency with a growing and substantial workforce from different areas of expertise. Among these areas of expertise are Architecture, Engineering, Regional and Urban Planning, Environmental Engineering, Anthropology, Law, and Economics. 10 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 However, the Regional Infrastructure Development Agency (RIDA) as the Project Executing Agency requires the capacity of experts from other fields not currently employed by RIDA. In order to support such activities, RIDA’s core team (consisting of civil servants, individual consultants and supported by Consultants’ Services, including those financed under the IPF component) through the Work Unit of the Strategic Area Development Center will develop a Technical Expert Team (Professional Specialist) consisting of experts from several areas of expertise stipulated through Decree (SK), especially related to environmental and social aspects. The technical team is tasked with: 1) Aiding the RIDA Team in coordination and synergy of Program implementation related to Tourism Development Program; 2) Assisting the RIDA Team in conducting activities and compiling documents related to the activities component of the Tourism Development Program; 3) Prepare and submit reports on the implementation of their duties to the Head of the Regional Infrastructure Development Agency through coordination with RIDA Team. Capacity Building Program The IPF component will also fund the Program Management Support for RIDA, including the Indonesia Tourism Development Program planning, budgeting, quality control, monitoring, monitoring, reporting, and coordination to ensure that the program is in line with the program objectives and in accordance with the loan agreement. The duties for the Program Management Support team include: a) Providing overall Program management assistance; b) Coordinating Program activities; c) Creating synergies among all stakeholders; d) Ensuring accountability in the management, monitoring and financial reporting of the program; e) Assisting in the preparation of the program's consolidated annual spending proposal; f) Building a Transparent Information Management System for Tourism Development; g) Ensuring the application of the Environmental and Social Management Framework (ESMF); h) Ensuring the active participation of local communities; i) Encouraging appropriate spatial planning practices in accordance with the Integrated Tourism Master Plan; j) Capacity building at the tourism destination level for monitoring and conservation of natural and cultural assets essential to tourism; k) Ensuring proper handling and resolution of complaints; l) Ensuring adequate capacity of all Program stakeholders; m) Ensuring timely delivery of reports and ensuring the presentation of relevant documents. Budget for Implementing the ESMF The ESMF is structured to screen, identify, avoid, mitigate, and eliminate the potential risks of environmental and social impacts that may arise from work financed under the IPF component. The IPF component is estimated at US$20 million (indicative budget allocations below), and a Project Preparation Grant of $2 million has been made available for the initial costs towards the technical assistance component activities.1 The table below includes the budget for the 1 The World Bank has also made available an advance out of the World Bank’s Project Preparation Facility in the amount not to exceed one million Dollars ($1,000,000) as provided below, and that the World Bank will: (i) increase the amount of the advance up to four million Dollars ($4,000,000), if and when such funds have been made available for the preparation of the proposed tourism development operation; for the purpose of the preparation of the proposed 11 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 IPF component. The activities and capacities needed to address the safeguards aspects of the Project as described in the ESMF, including the capability building and staffing for safeguards are incorporated into the activities and TORs of the activities financed under the IPF themselves and therefore there is no need for a separate ESMF implementation budget (a sub-budget item 4.a has been added to recognize this). The activities covered under item 4.a. include RIDA’s monitoring of and reporting on ESMF implementation at the destinations, troubleshooting and response to deficiencies, including providing training to implementing partners and stakeholders on environmental and social management. This item will also cover an environmental specialist and a social specialist, both with international experience, in RIDA to provide additional capacity to provide time for RIDA to build its capacity. No. Name of Package (indicative) Estimated Cost (USD) 1 Integrated Tourism Master Plan – Lake Toba 1,300,000 2 Integrated Tourism Master Plan – Lombok 1,300,000 3 Integrated Tourism Master Plan – Borobudur 1,300,000 4 Program Management Support Consultancy (5 years) 8,400,000 4.a Implementation of ESMF 1,000,000 5 Selected sectoral master plans 8,000,000 6 Studies and capacity building related to: skills and firm 1,700,000 development and business environment Total 22,000,000 Monitoring and Evaluation Arrangements of the Implementation of ESMF Monitoring and evaluation will be conducted to ensure that tourism development proceeds in a manner that adheres to the concepts of sustainability, and in accordance with the principles of capacity management. Capacity in this case refers to regional capacity, the capacity of certain attractions, economic capacity, and other resource capacity to extend and maximize the tourism life cycle. Where the concepts of conservation and preservation go hand in hand with that of commodification for economic benefit, the goals of sustainable tourism development can be realized. During its supervision activities, the MPWH as the Executing Agency will review plans, studies, designs, and any UKL-UPLs (or AMDALs) prepared under the Project to confirm that the requirements of the ESMF are being adequately incorporated. In the case of physical investments for which detailed design was prepared under the Project, RIDA supervision will include confirmation that the required UKL-UPL (or AMDAL), LARAP, and IP Plan have been prepared and approved and are of adequate quality. Supervision of construction and operation of physical investments financed by the PforR will be undertaken through the PforR Program, not under the Project. Every six months, RIDA will prepare reports for the Steering Committee and World Bank on ESMF implementation. The World Bank will review and provide comments and technical advice on the issues included in the reports. RIDA will immediately inform the Steering Committee and World Bank Task Team of any circumstance or occurrence that could have a materially adverse impact on the environmental and social performance of the IPF Project. Grievance Redress Mechanism (GRM) MPWH will establish a GRM team to receive and facilitate resolution of specific concerns of affected communities and Project participants regarding environmental and social tourism development operation. The IPF component will refinance the Advance, and the ESMF applies to the Advance as well. 12 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 performance. The GRM will aim to resolve concerns promptly, in an impartial, understandable and transparent process tailored to the specific community, and at no cost or without retribution to the complainant(s). GRM composition, procedures, and functions will be designed early in the implementation phase of the Operation based on principles detailed below and made available to the public. Public Consultation This ESMF was prepared with inputs and concerns conveyed in two rounds of public consultations. The first round of public consultations was held on the terms of reference (TOR) for the ESMF in Jakarta (3rd April 2017); Borobudur, Magelang Regency (6th April 2017), for Borobudur-Yogyakarta-Prambanan destination; Parapat, Simalungun Regency (10th April 2017), for Lake Toba destination; and Senggigi, West Lombok (12th April 2017), for Lombok destination. The second round of public consultations, on the draft ESMF, took place in Medan (Lake Toba destination), Mataram (Lombok destination) and Yogyakarta (Borobudur- Yogyakarta-Prambanan destination), as well as in Jakarta, during July 10-19, 2017.This ESMF has incorporated most of the key relevant issues and concerns obtained during both rounds of public consultations, among others, as listed below: • The planning of tourist destinations needs to take into account the travel patterns of both foreign and domestic tourists, along with necessary needs of improving the tourism sector such as transportation (including basic infrastructure), accommodation, cuisine, attractions, travel packages offered by travel agencies, souvenirs, readiness of tour guides and others. • For each priority tourism destination, the ITMP needs to take into account potential tourism development at the grass root/village level including the existing community- based tourism initiatives, such as “Desa Wisata” (tourism village, homestays, alternative tourist attractions), involve local leaders, local villagers, local Adat community and local values, not only to maximize the social and economic benefits to local people but also to protect and preserve natural resources, the environment and sociocultural assets, particularly those that contribute as tourist attractions. The government should facilitate potential tourist development at the grass root/village level and the mutual benefits of cooperation between the government, local communities and the private sector. • The ITMP should map the potentials of the tourism attractions and local initiatives, carry out infrastructure, social assets, environmental and social mapping as well as prepare the ITMP through intensive consultations with the local community. The ITMP should be able to identify potential collaboration between the local community, local government (including national parks authorities) and the private sector for harnessing mutual economic benefits from tourism development and to protect the environmental, social and cultural assets. • Readiness of the local community (including IPs) for receiving large scale tourism is of concern; participation of local community in the tourism sector is still limited due to capacity issues. Therefore, the Program is expected to strengthen the capacity (not only skills and competencies but also behavior) of the local communities (i.e., Masyarakat Adat, local tourism operators, local guides, villagers, etc.) to be able to increase their participation in the tourism sector. • The main concerns regarding infrastructure in all destinations are sanitation, water supply, traffic management, land use development and building code and permit, as well as land and building control management (including enforcement of the existing regulation on spatial development plans), access roads, access to internet, homestay management, greening, water quality (for Lake Toba), preservation of Adat Houses/villages/cultures/assets (for Lake Toba and Lombok), and visitor management (particularly Borobudur). 13 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Implementation of the master plan needs strong coordination, monitoring and enforcement. There is no action against violations of development that can be inconsistent in the master plans that had been adopted. • Infrastructure development should consider eco-road and eco-construction with consideration for facilitating crossing by animals. Construction/maintenance of road infrastructure, small bridges etc. should also consider the crossing used by animals. Mortality of animals should be considered by not disconnecting existing habitat connectivity and no interference from vehicles passing through the road. • One of the problems in developing tourism industry is related to provision of sanitation amenities and facilities for local communities and tourists. The other obstacle to sustaining sanitation amenities is the lack of continuity in the operation and maintenance budget. The local community has no strong awareness of good sanitation, maintaining the public amenities and keeping them clean and functional. That local governments do not play their roles and carry out their responsibilities optimally also plays a part in shortening the lifespan of the public amenities. • Incorporate responsible tourist awareness program to ensure sustainability tourism destination from environmental degradation especially for domestic tourists and foreign tourists. 14 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 1.0 INTRODUCTION 1.1 BACKGROUND 1. Indonesia has the potential to develop a world-class tourism industry, benefitting from its rich tourism endowments and building on the success of Bali. The Travel and Tourism Competitiveness Report 2017 ranks Indonesia 14th (out of 136 countries) for its natural resources and 23rd for its cultural resources and business travel, both capturing the principal reasons to travel. However, on other indicators, such as environmental sustainability and health and hygiene, Indonesia is lagging. Overall, Indonesia ranks 42nd in the Travel and Tourism Competitiveness Index, behind Thailand (34th), Malaysia (26th) and Singapore (13th) (see Table 1). Table 1: Indonesia's Tourism Competitiveness 2. The Government of Indonesia (Rank out of 141 countries in 2015 and 136 in 2017) has decided to transform Indonesia’s Travel & Tourism Competitiveness Index 2015 2017 economy using tourism as one of the Indonesia’s overall rank 50 42 main growth drivers. Law No. 10 Year Enabling environment 2009 states that tourism development Business environment 63 60 is necessary to promote equality in job Safety and security 83 91 opportunity and overcome the Health and hygiene 109 108 difficulties of competing in the global Human resources and labor market 53 64 economy. Whilst Indonesia has ICT readiness 85 91 T&T policy and enabling conditions experienced strong growth in foreign Prioritization of Travel and Tourism 15 12 visitor numbers since 2006, its tourism International openness 55 17 industry continues to lag competitors in Price competitiveness 3 5 reaching its full potential, with Environmental sustainability 134 131 significant disparities in growth Infrastructure between destinations. Thus, Indonesia Air transport infrastructure 39 36 aims to develop its tourism industry to Ground and port infrastructure 77 69 a level consistent with its natural and Tourist service infrastructure 101 96 cultural endowments. However, there Natural and cultural resources Natural resources 19 14 are several issues relating to tourism Cultural resources and business travel 25 23 development which, if not managed Source: World Economic Forum, “Travel and Tourism well, could have adverse impacts, Competitiveness Report, 2015” and 2017 including: • Impacts of the development of tourism-related facilities, including on-site facilities, parking and souvenir shops, hotels, roads or airports; • Physical and environmental impacts, such as accelerated deterioration of natural and cultural assets, increases in paved surface area, construction of infrastructure, air and water pollution, destruction of ecosystems or risks to wildlife habitats; • Social impacts including changes in local culture and effects of anti-social behavior such as sex tourism and drug dealing and use, caused by high volume of visitors to tourism sites and monuments; and, • Intrusive or excessive construction and related works, including inappropriate reconstruction. 3. Four key constraints, in particular, hinder the development of tourism in Indonesia and prevent it from reaching its potential: (i) continued poor access and quality of infrastructure and services for citizens, visitors, and businesses; (ii) outside of Bali, limited tourism workforce skills and private-sector tourism services and facilities; (iii) weak enabling environment for private investment and business entry; and (iv) poor inter-ministry/agency, central-local, and public-private coordination and weak implementation capabilities for tourism development in general, and for monitoring and preservation of natural and cultural assets in particular. Addressing these constraints in a comprehensive, integrated, and incremental manner is 15 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 therefore key to unlocking Indonesia’s potential and developing a tourism industry that builds on the success of Bali and performs at a level commensurate with its outstanding tourism endowments. 4. The first constraint to tourism development is continued poor access and quality of infrastructure and services for citizens, visitors, and businesses. Indonesia ranks in the bottom half of countries on several tourism competitiveness indicators that relate to access and quality of infrastructure and services, including: environmental sustainability (wastewater treatment), health and hygiene (drinking water and sanitation), tourism service infrastructure (hotel rooms), and ground and port infrastructure (roads) (see Table 1). In the three tourism destinations prioritized for development—Lombok, Borobudur-Yogyakarta-Prambanan, and Lake Toba—connectivity constraints are being resolved by opening up the main gateway (e.g. Medan for Lake Toba), as planned in regional infrastructure development plans. Gaps in carrying capacity are mainly due to limited infrastructure and services being provided for citizens, with visitor demand only accounting for a fraction of total needs—now and in the foreseeable future. The proposed Operation will contribute to addressing these gaps, which is particularly important to improve the destinations’ health and hygiene and environmental sustainability and to avoid further erosion of the natural and cultural assets on which future visitor growth depends. 5. The second constraint is limited tourism workforce skills and private-sector tourism services and facilities. Outside of Bali, Indonesia’s workforce has limited skills to provide a full range of tourism experiences (such as tour guides, cuisine, cultural experiences) in a profitable and sustainable manner. Furthermore, most businesses in less developed and emerging destinations need to improve their standard and quality of tourism services and facilities and— considering the rapid digitalization of the sector—their online presence. In the absence of these improvements, local firms and individuals will struggle to participate in and benefit from the economic opportunities created by the development of selected destinations outside Bali. 6. The third constraint to investment and business entry in the tourism sector is the weak investment and business climate in the country and in the destinations. Potential investors cite regulatory complexity and unpredictability, especially at the subnational level, and lack of clarity on development zones and government programs as concerns. Total foreign and domestic direct investment in Indonesia’s hotels and restaurants and other tourism businesses reached nearly US$1 billion in 2015. In the three destinations, investment growth has been more mixed. To achieve the estimated 9,938 additional hotel rooms needed by 2021 and a further additional 12,130 by 2026 to accommodate the projected numbers of visitors to the three destinations, $414.8 million in new investment commitments are needed during the next 5 years. Assuming broader tourism sector investment needs as well, a total of $525.7 million in new tourism sector commitments are needed in the next 5 years in the three destinations. The proposed operation will simplify investment procedures and licensing requirements in the tourism sector and strengthen systems to monitor and facilitate private investments. 7. The fourth—and overriding—constraint is weak coordination and implementation capabilities for sustainable tourism destination development, which requires a combination of closely aligned public and private interventions and inter-ministry/agency coordination at the national and subnational level. At the national level, these coordination mechanisms are already being developed. However, given that Indonesia is highly decentralized, provincial- and destination-level coordination mechanisms and implementation capabilities are also critical, but are still weak or absent. Capabilities to more effectively monitor and preserve natural and cultural assets particularly need to be strengthened. Private sector representation at all levels—important for gauging and testing investor interest—would need to be ensured through coordination team membership, regular invitations to meetings, and/or observer status. The proposed operation will strengthen these capabilities of the relevant agencies. 16 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 8. The GoI’s overall (emerging) program for developing tourism, the Indonesia Tourism Development Priority Program (Program Prioritas Nasional Pembangunan Parawisata Indonesia, PPNPPI) is guided by GoI’s RPJMN 2015-2019. The objectives of the PPNPPI are to increase foreign and domestic visitors and related foreign exchange earnings, employment, contribution to GDP as well as tourism competitiveness and includes six program areas: (i) international marketing and promotion; (ii) destination development; (iii) human resource and institutional development; (iv) international openness and access; (v) local economy linkages; (vi) safety and security and health and hygiene. The GoI is refining and augmenting its tourism development program. The World Bank is proposing to support part of the government program, in an Operation focusing on three of GoI’s ten priority tourism destinations. 9. The proposed World Bank operation has two complementary components—an approximately US$730 million Program using the Program for Results (PforR) instrument and an approximately US$20 million technical assistance component using the Investment Project Financing (IPF) instrument. The Program consists of government expenditure programs in four Results Areas (RA): (i) improve sustainability and tourism carrying capacity of selected destinations; (ii) promote local participation in the tourism economy (skill and local firm development); (iii) enhance the enabling environment for private investment and business entry into tourism; and (iv) increase institutional capacity to facilitate integrated and sustainable tourism development. It is proposed to be supported by a US$180 million World Bank Loan. The IPF technical assistance component consists of technical assistance to support the preparation of: (i) integrated tourism master planning; (ii) downstream planning documents; (iii) program management capabilities, including natural, cultural and social asset monitoring and preservation capabilities; (iv) additional studies as needed to support RA 2, RA 3, and RA 4, i.e. in SME and skill development and business environment improvement. 10. One characteristic of a PforR instrument is that environmental and social impact management for the Program is undertaken using the government’s safeguards laws, regulations, and procedures, supplemented with capacity-building and gap-filling activities identified in the Environmental and Social Systems Assessment (ESSA) prepared for the Program by the Bank. The IPF instrument, on the other hand, is subject to World Bank operational policies (OPs) for environmental and social safeguards. In the case of technical assistance operations, this means that all outputs produced must be compliant with the relevant safeguards OPs. When the full range of plans and studies is not known in advance, as is the case in this IPF, the approach to meeting that objective is to prepare an Environmental and Social Management Framework (ESMF). Activities that are judged to be likely to have significant adverse impacts that are sensitive, diverse, or unprecedented on the environment and/or affected people are not eligible for the Financing, and are excluded from the Program (Bank Policy Program-for-Results Financing, para 9). 11. This document presents the ESMF for the IPF component. It is meant to provide guidance to the Regional Infrastructure Development Agency (RIDA, or Badan Pengembangan Infrastruktur Wilayah, BPIW) of the Ministry of Public Works and Housing (MPWH), for the incorporation of the requirements of the OPs in activities the IPF finances. It also provides guidance for training and other capacity-building to strengthen implementing agencies at central and destination levels, to be provided by the Management Consultant the component will finance. 1.2 SCOPE AND METHODOLOGY 1.2.1 Scope for the ESMF 12. The ESMF is prepared to identify, avoid, reduce, and mitigate the risks of the potential social and environmental impacts that could result from investments recommended in the ITMPs. It provides guidance for RIDA in: incorporating the requirements of the OPs in plans and studies. Flowcharts in the text describe the steps for the above-mentioned activities and 17 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 the roles of GoI agencies and World Bank in respectively preparing, reviewing and approving safeguards documents for investments recommended by plans financed under the Project. 13. How the ESMF applies varies with the type of Project activity. • In the case of Integrated Tourism Master Plans, the ESMF provides for incorporation of the requirements of the various OPs “upstream” in the planning process, so that they are taken into account in selection of sites for various types of investments. For example, in the identification of “no-go zones” based on sensitivity of natural or cultural features, in early consultations with all stakeholders, including indigenous and vulnerable groups, etc. • In the case of sectoral plans financed by the IPF Project, the ESMF requires that outputs include a preliminary assessment of environmental and social impacts, based on the World Bank safeguards policies and Indonesian laws and regulations. 14. The ESMF was prepared in line with the World Bank’s Operational Policies and in accordance with Indonesian national laws and regulations. Any activity prepared under the IPF will be done in reference to the principles of sustainable development, including environmental, social, cultural, and economic considerations, as already governed in prevailing laws and regulations and the World Bank safeguards policies as contained in the ESMF. The ESMF includes a comparison of Indonesian laws and regulations and World Bank safeguards policies and provides for when Indonesian requirements and procedures do not meet the requirements of the Bank policies. 15. The Project area of influence is the area likely to be affected by activities recommended in the ITMPs for the tourism destinations and elaborated in downstream plans as well as by unplanned developments induced by those activities (e.g., spontaneous settlements and informal businesses) and cumulative impacts. The government’s program covers ten destinations listed below. The IPF will focus on the first three in the list. Table 2 in Section 3.0 below describes those three destinations in more detail—the specific areas covered by the ITMPs and their environmental, social, and cultural characteristics. • Borobudur-Yogyakarta-Prambanan • Lake Toba • Lombok Island • Tanjung Kelayang • Tanjung Lesung • Mount Bromo • Labuan Bajo • Wakatobi National Park • Pulau Seribu • Morotai 16. The ESMF has the following content: ▪ Executive Summary; ▪ Introduction. This contains IPF Project background, objectives, and rationale for the ESMF, and scope and methodology used to develop the ESMF; ▪ IPF Project Description; ▪ Environmental, social, and cultural characteristics of the three destinations; ▪ Potential impacts of the IPF component which includes the ITMP (consisting of an overall development plan for the entire tourism destination area and detailed 18 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 development plans for existing and selected future key tourism areas within the tourism destination area – (Annex 1); ▪ Institutional, legal, regulatory, and policy framework which includes a comparison of the Indonesian Laws and Regulations and provisions to meet World Bank safeguards policy requirements for the implementation of the IPF; ▪ Requirements for incorporating environmental and social impacts and management measures based on Bank applicable safeguards policies into the ITMPs and other plans; ▪ Organizational arrangements and institutional assessment and capacity-building for implementation of the ESMF. ▪ Capacity building and joint training program for the institutions responsible for implementing the ESMF; and the related budget. ▪ Grievance Redress Mechanism and Disclosure; ▪ Monitoring and evaluation arrangements of the implementation of ESMF; ▪ Summary of stakeholder consultations; and ▪ Appendices, including model terms of reference for the Integrated Tourism Master Plans, record of consultations, etc. 1.2.2 Methodology 17. The ESMF was developed through the following steps and methodology: ▪ Document review. The following documents were reviewed during the preparation of ESMF: o Project Appraisal Document for a Proposed Loan in the Amount of $200 Million to the Republic of Indonesia for a Tourism Development Program (April 2017 draft); o Draft Integrated Safeguards Data Sheet (ISDS) Concept Stage and Project Information Document (PID) Concept Stage; o World Bank Safeguard Policies and relevant Indonesian legislation; o Indonesia Tourism Development Program Environmental and Social Systems Assessment (ESSA) (December 2016 draft); and o Draft Terms of Reference for Integrated Tourism Master Plans. ▪ Public Consultation. The ESMF has gone through two rounds of consultations. The first was held in Jakarta (3rd April 2017), Borobudur, Magelang Regency (6th April 2017), Parapat, Simalungun Regency (10th April 2017), and Senggigi, West Lombok (12th April 2017) to obtain stakeholder comments on the terms of reference (TOR) for the ESMF. The second consultation was held on Medan, North Sumatera (10th July 2017), Mataram, Lombok (13th July 2017), Yogyakarta (17th July 2017) and Jakarta (19th July 2017) on the draft of the ESMF. 2.0 DESCRIPTION OF THE IPF COMPONENT 18. Environmental and social aspects are integral elements of this sustainable tourism initiative. Cultural and natural resources are the main attraction for tourists in Indonesia, but unless well planned and executed, tourism development can degrade those same resources 19 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 and ultimately be self-defeating and unsustainable. The proposed emphasis on monitoring and protection of natural and cultural assets in the Tourism Development Program will be operationalized by: (i) ensuring sufficient financing for such monitoring and protection efforts is included in the Program’s expenditure framework; (ii) providing the destination additional tools to strengthen local initiatives, for example, protection of lakes, mangroves or community forest management; (iii) providing capacity building to local authorities through the IPF financed preparation of the integrated tourism master plans on risk management to minimize the impacts on the environment and natural resources and through the IPF financed Program Management Support; and (iv) capacity building and training on conducting AMDALs and UKLs-UPLs and prepare Site Management Plans. To achieve this, a well-planned monitoring program will be developed during the implementation of the Program. The arrangement for the type of monitoring needed for the Program will be advised through Consultants’ Services, building on existing initiatives and capabilities. The project will also aim to increase the local community engagement in tourism development. Support will be provided to increase forums for community involvement and awareness of tourism development. 19. The rationale for the use of IPF for the technical assistance (Program Planning, Management, and Capacity Building) component of the Operation includes ensuring sufficient attention is paid to quality in evaluating proposals for a limited number of critical consultancy services. The GoI has requested to include technical support via a project-based approach to prepare the integrated tourism master plans and manage, monitor, and motivate capacity support to implementing agencies to execute the national program in a time bound manner and monitor and preserve the natural and cultural assets critical to future tourism growth. Through the IPF instrument, the Regional Infrastructure Development Agency (RIDA, or Badan Pengembangan Infrastruktur Wilayah, BPIW) of the Ministry of Public Works and Housing will address critical planning and institutional impediments and strengthen the implementation and institutional capacities of the implementing agencies. Therefore, RIDA prefers to utilize the IPF instrument whereby Bank funds are used to pay for ‘specific expenditures’, consulting services, procured following the Bank’s fiduciary rules and guidelines. 2.1 IPF PROJECT ACTIVITIES 20. The Project has three main activities and a possible fourth one, each of which will be supported by one or more contracts for consulting services. Specifically, the IPF component will finance the following consultants’ services: • Integrated Tourism Master Plans, • Downstream sectoral master plans; • Program Management Support; • Additional studies and technical assistance as needed to support Results Areas 2, 3, and 4, of the PforR component e.g., in SME and skill development and business environment improvement. 2.1.1 Integrated Tourism Development Master Planning 21. Integrated Tourism Master Plans (ITMPs) will be prepared for each destination. Each integrated tourism master plan consists of an overall development plan for the entire tourism destination area (with a planning horizon of 25 years) and detailed development plans (with a planning horizon of 5 years) for existing and selected future key tourism areas within the tourism destination area. The plans will be based on a thorough demand assessment and economic analysis for each destination and will be prepared in close consultation with all stakeholders, including local communities and the private sector. From the perspective of environmental and social management, they will provide the basis for development of tourism 20 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 facilities and supporting infrastructure that (a) integrates with the environmental, social and cultural opportunities and constraints of the destinations and (b) avoids degradation of the natural and cultural resources that are the assets that attract tourists. 22. These new plans respond effectively to the current challenges that exist in the Indonesian planning process. The existing plans are not sufficiently integrated across sectors, levels of government, and private stakeholders. There is a need for the development of comprehensive integrated tourism plans given the gaps in the existing instruments. The relevance of integrated instruments is to consolidate a cross-sectoral vision and implementation plan for a specific destination. The planning process requires: (a) clarity in the delineation of boundaries for intervention; (b) to be supported by verifiable data on tourism development; (c) a decision defining the right scale, scope, and specificity of the plans; (d) clarity on the legal basis of the plans and how they should be prepared and implemented, particularly when different levels of government are involved; and, (e) synchronization of the proposed interventions with the overall framework for development, sector, and spatial planning at the corresponding level of government. A strengthening of existing plans, where available, or the initiation of new ones, will pave the way for an integrated set of the highest- priority and strongest-impact investment. 23. The objectives of the new ITMPs are multiple. They provide the necessary framework for effective and sustainable tourism development, and will guide the downstream revision and/or preparation of spatial plans, sectoral master plans, and other relevant plans at the central and subnational level. The plans will provide a basis for more integrated, long-term investment planning and for gradual and concerted improvement of the tourism carrying capacity of each destination while at the same time improving basic infrastructure and services in local communities as a condition for inclusive development. The ITMPs are expected to particularly improve the quality and effectiveness of the expenditures under Results Area 1 and Results Area 4 of the PforR Program. The Integrated Tourism Master Plan is conceived as a coordination platform for the development of the tourism destination and as the instrument that will pave the way for effective and sustainable tourism development. It will identify the priority programs needed to strengthen tourism activities at the local level and will provide detailed recommendations for the preparation and revision of local, and provincial spatial plans and sectoral master plans (if necessary). 24. Sound master planning is an essential first step to upgrading basic infrastructure and services in local communities required to improve key indicators affecting tourism competitiveness (health and hygiene, environmental sustainability) and as a condition for inclusive tourism development. The scope of the activity includes (Annex 1), for each of the destinations: • Analysis of the institutional and legal, regulatory and policy framework; • Analysis of demand and opportunities for tourism destination area development; • Analysis of baseline conditions of spatial plans, infrastructure gaps, and visitor attractions and facilities; • Articulation of environmental, social, socio-economic, and cultural heritage opportunities and constraints; • Preparation of growth projections and development scenarios; • Detailing of the preferred development scenario; • Formulation of the integrated tourism master plan; and • Ensuring active stakeholder engagement. 25. The ITMP does not have a legal basis in itself. The recommendations of the ITMPs will be used as inputs to the downstream planning documents, such as the Detailed Spatial Development Plan for a Particular Area and Sectoral Plans, and as inputs to the revision of the relevant Regional Spatial Development Plans. Furthermore, recommendations of the 21 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 ITMPs will be used as inputs to the five year and annual programming of the RIDA and other relevant ministries, as agreed by the ministerial Tourism Coordination Team. 26. The Government Regulation (PP) No. 26/2008 on the National Spatial Development Plan defined Borobudur, Prambanan and Lake Toba and their surroundings as well as Gunung Rinjani as National Strategic Areas (KSNs). Based on this Government Regulation, two KSNs were regulated by a Presidential Decree, i.e. Perpres 81/2014 on the Spatial Development Plan for Lake Toba and its Surrounding Areas, and Perpres 58/2014 on the Spatial Development Plan for Borobudur and its Surrounding Areas. Both define: • Roles and function as well as coverage area of the KSN; • Objective, policy and strategy of the spatial development plan; • Structural development plan; • Spatial development pattern; • Direction for spatial utilization; • Area management of KSN; and • Roles of the community in the spatial development Both Perpreses (in clauses #4) also specify that the Spatial Development Plans will function as guidance for: • the preparation of a development plan for the KSN; • spatial utilization and control of the space utilization (Borobudur); spatial planning of the province and kabupaten in the KSN Toba (for Lake Toba); • embodiment of integration, linkage and balance for development among kabupaten, and harmonization/compatibility of multi-sectors in the KSN; • spatial planning for the areas in the province as well as kabupaten that cover the KSN (Borobudur); defining the location and function of space for investment in the KSN (Lake Toba); • management of the KSN’s area; • embodiment of integrated development and area conservation as well as ensuring good quality of spatial development in the KSN (Borobudur); embodiment of integrated development plan of the KSN (Lake Toba). For Lombok destination, Mount Rinjani is a KSN, however the Perpres on Spatial Development for this KSN is not (yet) available. However, there is NTB Provincial Government Regulation (Perda) No. 3/2010 on the Spatial Development Plan for West Nusa Tenggara (NTB) 2009-2029, Clause 8, that specifies among others, the following: • Policy and Strategy for Spatial Development that includes among others Island-based Strategy Spatial Development for Lombok Island (and Area-based for Sumbawa island – which is not part of the ITMP), covering integrated infrastructure development that supports the development of Lombok Island as an island unity; • Strategy for the improvement of quality and service area of the integrated infrastructure networks: transportation, telecommunication, energy and electricity, water resources, solid waste and sanitation in accordance with the need of the province (including in an island such as Lombok, Sumbawa island and other islands and inter-islands). 2.1.2 Downstream Planning Documents 27. Selected downstream planning documents—i.e., sectoral master plans—will also be financed. The specific sectoral master plans, that will benefit from attention in the IPF component will be identified in the course of ITMP preparation. 22 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 2.1.3 Program Management Support 28. The IPF component will also finance Program Management support to the Regional Infrastructure Development Agency (RIDA) of the Ministry of Public Works and Housing (MPWH) including Indonesia Tourism Development program planning, budgeting, quality control, supervision, monitoring, reporting, and coordination, to ensure that program implementation is done according to the program objectives and in compliance with the loan agreement. Tasks include: providing overall program management assistance; coordination of program activities; creating synergies among all stakeholders; ensuring accountability in program financial management, monitoring and reporting; assisting in preparing consolidated yearly expenditure program proposals; establishing a transparent Tourism Development Program Management Information System; screening potential Program investments; ensuring social and environmental safeguards are properly applied; ensuring active local community participation; facilitating proper spatial planning practice in accordance with the Integrated Tourism Master Plans; and ensuring proper complaint handling and resolution; ensuring adequate capabilities from all program stakeholders; and ensuring timely delivery of reports. This could also include independent verification of results. 2.1.4 Additional Studies 29. The potential other studies and technical assistance related to the Program Results Areas 2–4, that is: (2) promote local participation in the tourism economy (skill and SME development); (3) enhance enabling environment for private investment and business entry into tourism; and (4) increase institutional capacity to facilitate integrated and sustainable tourism development, will provide better solutions and capabilities for skill and firm development and business environment improvements related to the tourism sector in the priority destinations. 2.2 INSTITUTIONAL ARRANGEMENTS 2.2.1 Implementing Agency for the IPF Project 30. The Regional Infrastructure Development Agency of the Ministry of Public Works and Housing (MPWH-RIDA) will be the Executing Agency for the IPF Project, responsible for the day-to-day implementation of IPF Project and for preparing all reports required by the World Bank for the Project. The expenditures under the IPF component will be managed in accordance with OP/BP10.0. The reason for using Bank Procurement Guidelines and Procedures is that national and subnational rules do not permit sufficient attention to be paid to quality in evaluating proposals for Consultants’ Services. This is a longstanding challenge in Indonesian system, beyond remedy through capacity building activities of the sort associated with this operation. In view of this, the government itself has expressed a strong preference for adhering to Bank Procurement Guidelines in procuring high quality technical assistance. 31. For the PforR, the Program’s institutional arrangements for implementation consist of a national tourism coordination team, supported by a secretariat and program management. MPWH has been entrusted with the management of the Program (supported by the Program Management Support Consultants’ Services, financed under the IPF), guided by a tourism coordination team that oversees the government’s program. The Program will be implemented by the Ministry of Public Works and Housing, the Ministry of Tourism, the Investment Coordinating Board (Badan Koordinasi Penanaman Modal, BKPM), and possibly several other Ministries/Agencies (e.g. Manpower and Transmigration), including at the subnational level (e.g. provincial/local Public Works Agencies, Environmental Boards, technical and vocational education and training (TVET) tertiary institutions, local one-stop integrated services (Pelayanan Terpadu Satu Pintu, PTSP-local)). MPWH’s proposed institutional arrangements also include provincial and destination-level coordinating bodies, but these are yet to be 23 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 established. Acknowledging that a lack of coordination is at the core of tourism’s unfulfilled potential, one of the critical objectives of the Program is to strengthen these coordination mechanisms, through the Program Management Support Consultants’ Services, PforR and IPF financing, and the Program Action Plan. 32. Implementation will be carried out by a combination of a Steering Committee and Technical Committee Team. The Steering Committee is composed of Echelon 1 officers from each involved Ministry or Agency and a Technical Committee team. It is co-chaired by the Deputy Infrastructure in the Ministry of National Development Planning (BAPPENAS) and the Deputy Destination Development and Tourism Industry in the Ministry of Tourism. The Head of RIDA will be secretary of the Steering Committee. The Steering Committee members include: 1. Deputy Economy, BAPPENAS 2. Deputy Funding, BAPPENAS 3. Deputy Infrastructure, Coordinating Minister for Maritime Affairs 4. Deputy Regional Development, Minister for Economy 5. Financing and Risk Management Director, Ministry of Finance 6. Plt. Director General Regional Development, Minister of Home Affairs 7. Director General of Pollution Control and Environmental Degradation, MOEF 8. The Secretary General, Ministry of Transportation 9. Director General of Renewable Energy, Ministry of Energy and Mineral Resources 10. The Secretary General, Micro, Small and Medium Scale Enterprises 11. Investment Climate Development Deputy, The Investment Coordinating Board 12. The Director General of Spatial Space, Ministry of Agrarian Affairs and Spatial Planning. 33. The Technical Committee Team consists of tourism development Echelon II officials of each involved ministry or agency. It is co-chaired by the Director of Industry, Tourism and Creative Economy in the Ministry of Planning/BAPPENAS and the Deputy Assistant Infrastructure Development and Impacts of Tourism in the Ministry of Tourism. Head Strategic Area Development Center, RIDA will be secretary with the team composition as follows: 1. The Director of Multilateral Foreign Funding, BAPPENAS 2. The Director of Transportation, National Development Planning Agency 3. The Director of Water and Irrigation, National Development Planning Agency 4. Deputy Infrastructure, Coordinating Minister for Maritime Affairs 5. Director of Environmental Pollution, Ministry of Environment and Forestry 6. Head Planning Bureau, Ministry of Transportation 7. The Secretary of the Board of Special Economic Zone 8. Director of Investment Promotion, The Investment Coordinating Board 9. Deputy Assistant Business Sectors Energy, Logistics, Metro, and Tourism, the Ministry of State Owned Enterprises. 10. The Ministry of Cooperatives and Small-scale Enterprises (MSME) 2.2.2 Implementing Agency for the ESMF Implementation 34. The day-to-day responsibility for ESMF implementation and for the environmental and social safeguards performance of the Project is under RIDA. RIDA is the focal point for all matters relating to safeguards (environment and social protection) issues during the Project. The Executing Agency’s functions are summarized in Table 2 below. Table 2: Functions of the Executing Agency and World Bank Organization Responsibilities 24 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Regional Infrastructure • Screens proposals/studies for IPF for safeguards issues. Development Agency of the • Maintains records of all proposals and screening decisions. Ministry of Public Works • Highlights potential safeguard issues and determines the and Housing (MPWH- appropriate safeguards instruments (EIA, EMP, UKL-UPL, RIDA) AMDAL, LARAP). • Facilitates agreements between communities/ stakeholders during the consultation of TORs for safeguards instruments. • Ensure that the ITMP consultant team will implement the TOR for ITMP consistently particularly for safeguards mainstreaming in the process and in the outputs; • Oversee, guide and supervise the agency/entity who are the subproject proponents of the implemented land use development and physical investments recommended by the ITMPs to follow the guidance provided in the ITMPs on safeguards in compliance with the ESMF; • Monitoring and evaluation of the implementation of the plans or studies. • Develop, organize, and deliver training programs and workshops to local governments or affected stakeholder in all destinations. • Report to WB on the overall environmental and social safeguard performance of the IPF component. World Bank • Review the ITMPs (including the DDPs) and the Sectoral Plans and Studies, ensuring that guidance on safeguards management specified in the ITMPs to be implemented by the agency/entity and their consultants are in compliance with the ESMF; • Supervise regularly the implementation of any social and environmental mitigation plans. 3.0 ENVIRONMENTAL, SOCIAL AND CULTURAL CHARACTERISTICS OF THE THREE DESTINATIONS 35. More comprehensive and detailed information on the scope of the activities of the IPF Project for the Consultant’s Services to prepare for the Integrated Tourism Master Plans (ITMP) is attached in Appendix 1 – TOR for the Integrated Tourism Master Plan. 36. Three destinations have been identified for which the ITMPs will be completed and which will be funded by the IPF Project. The ITMPs include overall development plans (25 years) for the tourism destination areas: (a) The entirety of Lombok Island (b) Borobudur-Yogyakarta-Prambanan, consisting of the Borobudur Cluster, which coves Kecamatan2 Tempuran, Kecamatan Mertoyudan, Kecamatan Muntilan, Kecamatan Borobudur and Kecamatan Mungkid; the Prambanan-Boko Cluster, which covers Kecamatan Prambanan in Kabupaten Sleman and Kecamatan Prambanan in Kabupaten Klaten; and the Yogyakarta Cluster, which covers Kota Yogyakarta. (c) Lake Toba, as defined by the Presidential Regulation No. 81 Year 2014 on the Spatial Plan of Lake Toba and Surrounding Areas (covering a period of 25 years), with special attention (i.e., baselines and targets for) to wastewater and solid waste concerns: Kecamatans Simanando, Pangururan, Nainggolan, Onan Runggu, Palipi, Ronggur Nihuta, Silahisabungan, Merek, Muara, Baktiraja, Lintongnihuta, Paranginan, Pematang Silimahuta, Silimakuta, Purba, Haranggaol Horison, Dolok Pardamean, Pematang Sidamanik, Girsang Sipangan Bolon, Ajibata, Lumban 2 In Indonesia, subnational governance includes four levels: (1) province/Provinsi, (2) city/Kota and regency/Kabupaten, (3) sub- district/Kecamatan or district/District and (4) urban community/Kelurahan or village/Deas. 25 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Julu, Uluan, Porsea, Siantar Narumonda, Sigumpar, Laguboti, Balige, Tampahan, Sianjur Mulamula, Harian, and Sitiotio. 37. Below is the summary of the locations of the key tourism areas within the above tourism destination areas for which a 5-year Detailed Development Plan (DDP) will be made (See Table 3). Table 3: Overview of Locations as Described in ITMPs, With a Focus on Detailed Development Plan (DDP) Description Lake Toba Lombok Borobodur Priority key Detailed development Detailed development Detailed development tourism plans (5 years) for priority plans (5 years) for priority plans (5 years) for priority areas for key tourism areas: key tourism areas: key tourism areas: DDPs. -Parapat in Kecamatan -The Borobudur Cluster -Gili Islands-Senggigi Girsang Sipangan Bolon covering two Kecamatan: covering: Kecamatan in Kabupaten Borobudur and Mungkid. Batu Layar in Kabupaten Simalungun, and West Lombok, and -The Prambanan-Boko Kecamatan Simanindo Kecamatan Pemenang Cluster covering and Kecamatan and Kecamatan Tanjung Kecamatan Prambanan in Pangururan in Kabupaten in Kabupaten North Kabupaten Sleman and Samosir. Lombok. Kecamatan Prambanan in -Kecamatan Balige in Kabupaten Klaten. -The southern coastal Kabupaten Toba area covering: Samosir. -The Yogyakarta Cluster Kecamatan Pujut and including the Kraton, Kecamatan Praya Barat Taman Sari and in Kabupaten Central Malioboro Street, Lombok; Kecamatan covering the following Sekotong in Kabupaten Kecamatan: Kraton, West Lombok; and Gedongtengen, Kecamatan Jerowaru in Danurejan, Ngampilan, Kabupaten East Lombok. Kotagede and Gondomanan. Population The total number of The total population of The total population of and main population living in the Lombok island is Magelang Regency economic Lake Toba area is estimated to be 3.3 (Borobudur) and the activities in estimated to be around million people. The key Special Region of the tourism 656,872 people. Main tourism areas are Yogyakarta is estimated destination economic activities are concentrated in the to be 4.93 million people area fisheries, agriculture (rice southern coastal areas in 2015.*** Main fields), paper pulp and in the Gili islands off economic activities are industries, and tourism. * the coast of North agriculture, tourism and Lombok, where service industries. population density is low. Main economic activities are local tourism, fishing, and agriculture**. General The lake provides The North Lombok The site of Borobudur description abundant freshwater and Regency includes the Gili Temple is surrounded by of the is surrounded by Islands (Gili Trawangan, mountains, lakes, fertile natural mountainous countryside. Gili Air, and Gili Meno), soils, with abundant water habitats of The lake basin areas are which support marine life resources. Agriculture is the tourism surrounded by steep and coral reefs. On the one of the main economic destination cliffs*. There are two southern side of the activities around the area islands inside the lake— Lombok Island, temple complex. Samosir Island (647 km 2) Kecamatan Pujut in Borobudur Temple and its and Pardapur Island Kabupaten South Lombok surroundings are also (7km2). is known for the beautiful situated in an earthquake 26 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 beaches such as Kuta zone due to the Beach****. Kecamatan geological setting. Jerowaru is also located in Kabupaten South Lombok and known for its beautiful beaches and coastal fishing. Sepotong is located in Kabupaten West Lombok and is a coastal area. Additional Protected forest areas are In Gili Islands and some The Borobudur Temple information not located in the tourism parts of Lombok Island, compound and on sensitive destination*. The lake there are turtle Prambanan Temple areas in the area surrounding the conservation activities compound are UNESCO tourism tourism destination is part carried out mostly by World Heritage Sites. destination of a geological formation privately owned turtle There is no forest habitats area because of mega- sanctuaries. or natural habitats that volcanic activity and it is will be degraded by the the largest freshwater IPF Project activities***. lake in Indonesia. Current Water pollution is an Gili Trawangan’s Traffic congestion due to state of issue. Threats are from popularity as a tourist limited access roads and environment untreated waste water destination means it over-crowding of tourists condition from human settlements, produces 20 tons of during peak season have aquaculture farming, waste per day (peak been two of the concerns spilled oil from boats and season) or 5–8 tons per that have led the vessels around the lake, day (low season). The management of the and deposition of island currently has no UNESCO site to find sediments due to soil proper waste suitable alternatives for erosion from surrounding management. the current tourist steep hills. There are also management plan. no proper sanitation facilities to handle solid waste*. Type and Nature – Lake scenery, Nature – Long stretch of Culture/Heritage – The key tourism mountainous countryside white sandy beaches and Borobudur cluster attraction view, hot spring, smaller nearby islands for includes the temples of areas. waterfalls and mountain snorkeling and dive sites. Borobudur (Pawon and trekking. For example: Pink Beach in Kecamatan Mendut); the sunrise Parbaba, a beach by the Jerowaru is known for its spots of Punthuk fresh water lake (Lake unspoiled scenery and Setumbu; Bukit Rhema, Toba); and the hot isolated long stretch of an abandoned prayer springs at Gunung Pusuk pink sandy beach. site; and surrounding Buhit Mountain. Culture – Sasak villages cultural villages. The Culture – The history and that house traditional Prambanan-Ratu Boko the cultural heritage of the Sasak farmer families are cluster’s main tourism Batak ethnic community also key attractions. A attractions include the are located within the key Hindu temple (Pura Meru Prambanan Temple and tourism area. Other Temple) is the largest and Ratu Boko, a 16 ha site attractions such as the second-most important with Buddhist and Hindu Stone Chair of King temple in Lombok. structures. The Siallagan and King Yogyakarta cluster Sidabutar’s Tomb; and includes the Keraton, the Ambarita, a traditional sultan’s residence and a village that provides living museum; the Water glimpses of Batak culture. Palace; and Malioboro Shopping Street. 27 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Indigenous Batak people meet the Sasak people meet the Javanese is the dominant peoples (if definition of indigenous definition of indigenous ethnic groups in the area. any) people and the Batak is people. There are some No indigenous people the dominant ethnic group tourism attractions found found in surrounding in the area They mostly in in the Sade Customary Borobudur, Magelang, live in the highlands. The Village (not included in and Yogyakarta. Batak Toba people have detailed in development traditional architecture plan), Bek Customary styles which are common Village, Belek Customary in Samosir. Customary Village, and Bayan villages (Kampung- Customary Village. Those kampung Adat) are customary have been located in the revived and share similar surroundings of Lake movement agenda toward Toba, particularly in the customary land territory Porsea subdistrict (found recognition. in the area covered by the In other parts of Lombok, overall development plan there are traditional but not included in the settlements intertwine detailed development with modern settlements. plan). There is a Tano This can be found in Batak indigenous Khayangan District and people’s alliance network Bayan District, North in the area. The Lombok (not part of the organization is working detailed development towards customary land plans). There is also territory recognition. indigenous people in Ende Village in Pujut district in middle of Lombok (also not part of the detailed development plans). Table sources and notes: * KSPN Lake Toba Chapter 3 on the profile of the planned district. ** Lombok Baseline Supply & Demand Assessment – Horwath HTL and Surbana Jurong. *** Borobudur (Joglosemar) Baseline & Demand Assessment – Horwath HTL and Surbana Jurong. **** Every year in February, there is an annual tourist event which is known as “Bau Nyale”. 4.0 POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS OF THE IPF COMPONENT 38. Examples of potential environmental and social impacts that will be identified during the implementation of the ESMF as well as examples of mitigation measures are described for each type of activity in Table 4. Table 4: IPF Component Activities and Potential Environment and Social Impacts IPF Component Type of activities Potential environmental Possible mitigation Activities and social impacts measures a) Integrated • Analysis of the Positive: The Integrated • This is explained Tourism Master institutional and legal, Tourism Master Plans and elaborated in Plan Plans regulatory and policy (ITMPs) are created in Chapter 6.0 (ITMPs), framework; order to avoid one of the Incorporating consisting of an • Analysis of demand and negative impacts of Environmental and overall opportunities for tourism unintegrated tourism Social development plan destination area development, which is that Considerations for the entire development; increased tourism can based on the Bank tourism degrade the environmental OPs into the ITMPs destination area and cultural resources on 28 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 (with a planning • Analysis of baseline which tourism depends if and other horizon of 25 conditions of spatial necessary preventative development plans. years), and plans, infrastructure gaps, infrastructure and • In ethnic minority detailed and visitor attractions and management areas, engage with development facilities; arrangements are not put local communities plans (with a • Articulation of in place. ITMPs will provide in local languages. planning horizon environmental, social, assessment by pre- Include a wide of 5 years) for socio-economic, and screening potential range of ethnic existing and cultural heritage activities and associated community leaders. selected future opportunities and impacts that would be well Where those key tourism areas constraints; identified in the planning communities within the tourism • Preparation of growth process. ITMPs will help to consist of destination area. projections and inform all stakeholders and indigenous or land- development scenarios; provide a vehicle for connected peoples, • Detailing of the preferred consultation to obtain communities should development scenario; stakeholder concerns and have the • Formulation of the aspirations. They will opportunity to give integrated tourism master minimize uncertainty and or decline to give plan; and lack of transparency. The their free, prior and • Ensure active stakeholder ITMP will also identify the informed engagement. priority programs needed to consultations that strengthen tourism lead to broad activities at the local level community support and provide detailed to tourism recommendations for the development which preparation and revision of makes use of their local and provincial spatial land or cultural plans and sectoral master heritage. plans (if necessary). The • Areas that are in-depth analysis and identified in the stakeholder engagement in baseline the ITMP will incorporate a information as bottom-up approach that having land legacy was lacking in previous issues will be spatial analysis conducted assessed further in the priority tourism through rapid destinations. The ITMP is assessment to be thus conceived as a carried out by the coordination platform for ITMPs consultant the development of the team. Land legacy tourism destination and as issues can be the instrument that will considered as pave the way for effective constraints from and sustainable tourism further development. development of the affected area in the Negative: The ITMPs may ITMPs, until the not be implemented at the issues are resolved desired standard, which meeting the would limit their Indonesian effectiveness as guides for Regulations, or if sustainable tourism there is a clear plan development. Facilities to resolve this constructed upon the issue. (with recommendation of the monitoring ITMPs may have indirect or milestones and induced adverse impacts or clear timeline) in cumulative impacts either accordance with not foreseen, not effectively the Indonesian managed, or both. Regulations. The Unplanned development potential risks, induced by the provision of opportunities and tourism facilities is a solution of this common example; it can issue will be taken create traffic congestion, into account in the generate effluents or solid three development waste that are not properly scenarios, possibly managed, and affect visual 29 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 amenity. Local with a later communities can be “left development phase behind” when it comes to to be implemented the benefits of tourism and depending on the their ability to participate assessment of the effectively in its ITMPs consultant development, and may and agreement affect their traditions and between the RIDA cultures. Loss of land, loss and the Bank. of access to customary Detail on how to resources or sources of address legacy livelihood, and impacts on issues are the integrity of local culture presented in the are also potential negative LARPF para.84-87 effects. Some visitors will of this ESMF. engage in anti-social behavior, such as drug and alcohol abuse and sex tourism. Other examples of potential adverse impacts include: depletion of sensitive natural resources upon which tourism often depends; poor maintenance of the facilities after completion of construction, lack of operating budget and capable human resources to manage the facilities and monitor and manage their environmental and social impacts. b) Downstream • Preparing the necessary Positive: By minimizing • Capacity building sectoral master documents to help the the risk of poor planning, and joint training plans government to improve the financing of program for the the quality of downstream sectoral institutions expenditures under master plans helps to responsible. Result Area 1. integrate international standards for sustainability in tourism development and provides an opportunity for green building design and construction. This also provides the necessary risk assessment on the potential environmental and social constraints and benefits and helps to advise the government on the latest techniques and methods for sustainable development, such as improved building materials or ways to incorporate climate resilience in infrastructure, especially in sensitive and vulnerable tourism destinations. Negative: The sectoral master plans may not be implemented at the desired standard, which would limit their 30 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 effectiveness. Facilities constructed upon the recommendation of the sectoral master plans may have indirect or induced adverse impacts or cumulative impacts either not foreseen, not effectively managed, or both. Unplanned development induced by the provision of facilities is a common example; it can create traffic congestion, generate effluents or solid waste that are not properly managed, and affect visual amenity. Local communities can be “left behind” when it comes to the benefits of improved services. Loss of land, loss of access to customary resources or sources of livelihood, and impacts on the integrity of local culture are also potential negative effects. Other examples of potential adverse impacts include: depletion of natural resources upon which tourism often depends; poor maintenance of the facilities after completion of construction, lack of operating budget and capable human resources to manage the facilities and monitor and manage their environmental and social impacts In some regions, the capacity of the AMDAL or UKL-UPL preparers may be inadequate, as may that of reviewers and enforcement officers in the local government environment agencies, to ensure that all necessary mitigation actions are included in the environmental management plans and are properly implemented by the contractors. c) Program • Providing program Positive: The Program • No mitigation Management management services to Management Support needed. Support Services RIDA and necessary Services will provide better documentation and solutions and incorporate inputs to the Indonesia better efficiency in Tourism Development delivering the necessary program for planning, key deliverables for the budgeting, quality Program. It also will control, supervision, improve the risk monitoring, reporting, assessment and mitigation 31 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 and coordination, to measures for investments ensure that program supported by the Program. implementation is It will eventually increase according to the the quality and quantity of program objectives and the deliverables for is in compliance with the sustainable tourism loan agreement. development through • The consultants will be central-local government working with RIDA and coordination and also other stakeholders to public-private coordination. ensure the objectives As part of the loan and key outcomes of the agreement, the PforR Program will be well program will also be designed, implemented measuring the regular and well-monitored as reports made by the per specific in the UNWTO Sustainable assigned tasks. Tourism Observatories • The consultants will (STOs), or similar provide appropriate agencies, which are set up environmental and as part of the destination- social training at RIDA specific monitoring and in the destinations. mechanism. • The consultants may be called on to provide Negative: None experts to fill gaps in anticipated capacity at RIDA and elsewhere. d) Additional studies • Preparing necessary Positive: Various studies • Improvement of and capacity study assessments and will provide opportunities to environmental and building to support providing solutions on incorporate environmental, social awareness Program Results how to mitigate or gaps health, safety, and social in line with Areas 2, 3 and 4, in the capacity building management aspects in economic i.e. in business for skills and knowledge. the development of development. and skill This could also include businesses at the SME development and budgeting support, level towards sustainable business training, workshops, or economic development. environment other support identified The studies will increase improvements. in the ITMPs or DDPs the environmental and documents. social awareness of the SME business players that support the tourism industry development in the targeted destinations. The potential other studies and technical assistance related to the Program Results 2–4 will provide better solutions and capabilities for skill and firm development, including environmental and social impact management, and business environment improvements related to the tourism sector in the priority destinations. Negative: The development of SME business and business climate improvements, if not managed properly, could lead to the depletion of natural resources and potential increase of 32 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 environmental pollution. This could also lead to social impacts which increase economic disparity. 33 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 5.0 POLICIES AND LEGISLATIVE FRAMEWORK 5.1 THE WORLD BANK SAFEGUARD POLICIES 39. The World Bank Safeguard Policies and their policy objectives in the table below: Table 5: World Bank Environmental and Social Safeguards and their Policy Objectives No. OP/BP Safeguard Policy Objectives 1. 4.01 Environmental Help ensure the environmental and social soundness and Assessment sustainability of investment projects. Support integration of environmental and social aspects of projects in the decision-making process. 2. 4.04 Natural Habitats Promote environmentally sustainable development by supporting the protection, conservation, maintenance, and rehabilitation of natural habitats and their functions. 3. 4.09 Pest Minimize and manage the environmental and health risks associated Management with pesticide use and promote and support safe, effective, and environmentally sound pest management. 4. 4.11 Physical Assist in preserving PCR and in avoiding their destruction or damage. Cultural PCR includes resources of archeological, paleontological, historical, Resources architectural, religious (including graveyards and burial sites), aesthetic, or other cultural significance. 5. 4.12 Involuntary Avoid or minimize involuntary resettlement and, where this is not Resettlement feasible, assist displaced persons in improving or restoring their livelihoods and standards of living in real terms relative to pre- displacement levels or to levels prevailing prior to the beginning of project, whichever is higher. 6. 4.10 Indigenous Design and implement projects in a way that fosters full respect for Peoples indigenous peoples’ dignity, human rights, and cultural uniqueness and so that they (1) receive culturally compatible social and economic benefits, and (2) do not suffer adverse effects during the development process. 7. 4.36 Forests Realize the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environmental services and values of forests. 8. 4.37 Safety of Dams Ensure quality and safety in the design and construction of new dams and the rehabilitation of existing dams, and in carrying out activities that may be affected by an existing dam. 9. 7.50 Projects on Ensure that the international aspects of a project on an international International waterway are dealt with at the earliest possible opportunity and that Waterways riparian are notified of the proposed project and its details. 10. 7.60 Projects in Ensure that other claimants to the disputed area have no objection to Disputed Areas the project, or that the special circumstances of the case warrant the Bank’s support of the project notwithstanding any objection or lack of approval by the other claimants. 34 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 5.2 INDONESIAN REGULATIONS 40. Beside the World Bank Safeguard Policies, RIDA also will refer to Indonesian environmental and social regulations, as well as those on land acquisition. The following Table lists the key GoI’s legislations related to environmental, social, and land acquisition issues: Table 6: Applicable Indonesian Regulations on Environmental, Social, and Land Acquisition Issues No. Regulations Theme and General Objective 1. Law No. 32 Year 2009 Environmental Protection and Environmental Management. The purpose of this Law is to foster environmentally sustainable development by means of an environmental planning policy, and the rational exploitation, development, maintenance, restoration, supervision, and control of the environment. Environmental protection and management shall be planned through the following phases: environmental inventorying to obtain data and information on natural resources; stipulation of eco-regions; and the formulation of environmental protection and management plans. 2. Law No. 18 Year 2013 Prevention and Eradication of Deforestation (UUP3H). The law aims to prevent and eradicate forest destruction with several objectives: a.) ensures the law certainty and deterrent effects to those caused forests destructions; b.) ensures the sustainability of the forests; c.) optimizes the management and utilization of forest products by considering the balance of forest functions for the welfare of the people; and, d.) enhance the capacities and coordination of the lawmakers and related parties in handling the prevention and eradication of forests destruction. The scope includes: a.) prevention of forests destruction; b.) eradication of forests destruction; c.) institutionalization; d.) community participations; e.) international cooperation; f.) witness, reporter, and informant protection; g.) financing; and, h.) sanctions. 3. Law No. 5 Year 1960 Agrarian Basic Principles. This Law defines the fundamental types of rights that may be held by private individuals and entities. This Law describes the role of the state with regard to its direct use of land as well as its regulation of private rights and private uses of land. This Law also states that Indonesian’s agrarian law is “adat” law, or Indonesia customary law, as long as it does not conflict with the national interest or other regulations set out in this Law. 4. Law No. 2 Year 2012 Land Acquisition for the Development of Facilities for Public Use. This Law substantially accelerates the land acquisition process for development in the public interest. It sets clearer mechanisms for the land acquisition to facilitate the development of public infrastructure projects. 5. Law No. 26 Year 2007 Spatial Planning Management. In the context of (Amends Law No. 24 decentralization, urbanization and other factors, it grants Year 1992) authority over spatial planning to provincial governments and district (local) governments (pemerintah kabupaten and pemerintah kota). Provision of this authority is not stipulated within previous spatial planning laws. It also provides some new ways for enhancing development control including zoning, planning permits, implementation of incentives and disincentives, including administration and criminal sanction. Law No. 26 Year 2007 also acknowledges the importance of public participation in spatial planning. 35 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 No. Regulations Theme and General Objective 6. Government Regulation Environmental Permit. The Environmental Permit Regulation No. 27 Year 2012 No. 27 Year 2012 requires that application for environmental permit shall be accompanied by environmental assessment documents (AMDAL and UKL-UPL), business legal documents, and business profile document. Under this regulation, project owners need to apply for an environmental permit from the appropriate government authority before project implementation. 7. Government Regulation Procedures for Implementation of Strategic Environmental No. 46 Year 2016 Assessment. This regulation concerns procedures for the implementation of a series of systematic, thorough, and participatory analyses in order to ensure that the principles of sustainable development have become the basis for and been integrated in the development of a region and/or policy, plan, and/or program. 8. Government Regulation Water Quality Management and Control of Water Pollution. No. 82 Year 2001 This regulation is designed to control the management of water quality and water pollution in an integrated manner using the ecosystem approach. This integration means the control is applied to the planning, implementation, supervision, and evaluation phases. 9. Government Regulation Control of Air Pollution. The aims of air pollution control are: (a) No. 41 Year 1999 guaranteeing the safety and conservation of environmental and public services functions; (b) raising public awareness of the environment so as to achieve harmony, suitability, and equilibrium between humans and the environment; (c) controlling the use of resources wisely; and (d) controlling sources of pollution so that the air quality meets the medical requirements for humans and other creatures. 10. Government Regulation Hazardous Waste Management. In general, this Regulation No. 101 Year 2014 regulates the management and disposal procedures for toxic and hazardous waste substances (“hazardous waste”), covering: (a) methods of identifying, reducing, storing, collecting, transporting, utilizing, processing, and signage of hazardous waste; (b) procedures for dumping hazardous waste into the open sea or land; and (c) risk mitigation and emergency procedures. 11. Government Regulation National Spatial Plan. The regulation regulates policy directives No. 26 Year 2008 and spatial utilization strategies, which are intended to actualize a safe, comfortable, productive, and sustainable national plan. 12. Presidential Regulation Implementation of Land Acquisition for the Development of No. 71 Year 2012 Facilities for Public Use. This Presidential Regulation has been Presidential Regulation amended four times, until the latest version of No. 148 Year 2015. No. 40 Year 2014 This new Regulation has facilitated more timely funding for land acquisition. Under the new law, private investors can provide Presidential Regulation funds at an early stage, confident that these funds will either be No. 99 Year 2014 refunded directly or through revenue arrangements as the project Presidential Regulation proceeds. This contrasts with previous version whereby land No. 30 Year 2015 acquisition had to wait for disbursement of the state budget, Presidential Regulation which is often limited and subject to a long budgeting cycle. In No. 148 Year 2015 Presidential Regulation No. 30 Year 2015, for land acquisition of land smaller than 5 hectares, the investment proponent can purchase land directly from the land owners; while in No. 148 Year 2015, the Governor must conduct the land acquisition preparation phase after receiving the appropriate Land Acquisition Planning Document from the relevant agency. In this phase of implementation, the Governor must form a preparation 36 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 No. Regulations Theme and General Objective team within 2 working days (decreased from 10 working days in earlier regulations) after officially receiving the document. Announcement of locations to be acquired must be done within 2 days (previously 3) after the land acquisition has been decided. According to this Perpres, the announcement must be done for 7 working days (previously 14). 13. Presidential Regulation Borobudur and its Surrounding Spatial Plan. This regulation No 58 Year 2015 is an operationalization instrument of the national spatial plan and a coordination instrument for the implementation of Borobudur’s development to ensure the preservation of the Borobudur area as a National Cultural Heritage Area and World Cultural Heritage Site. 14. Minister of the Types of Business and/or Activities for which an Environment Regulation Environmental Impact Assessment (AMDAL) is Mandatory. No. 05 Year 2012 This Regulation lists activities in different sectors and specifies the limit of business scale that will trigger the requirement that the activities obtain an AMDAL (full environmental impact analysis (EIA)) study. Activities not listed in this regulation only require a UKL-UPL study (a smaller scale EIA). This Regulation also provides a screening process to evaluate activities that are not listed or specified in the Regulation, to decide if such activities will require AMDAL or UKL-UPL. 15. Minister of the General Guidelines for Strategic Environmental Environment Regulation Assessments. This regulation contains references for No. 09 Year 2011 implementing strategic environmental assessments for policy, plans, and/or program makers, in sectoral as well as regional contexts. 16. Minister of the Guidelines for Preparation of Environmental Documents. Environment Regulation This regulation contains references for drafting environmental No. 16 Year 2012 documents in the form of Environmental Impact Assessments (AMDAL), Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL), or Statement of Environmental Management and Monitoring Capability. 17. Minister of the Guidelines for Public Participation in the Environmental Environment Regulation Impact Assessment and Environmental Permit Process. This No. 17 Year 2012 regulation contains references in implementing public participation in Environmental Impact Assessment and Environmental Permit Process. The regulation stipulates the requirement to carry out public consultation as part of the process for preparation of AMDAL (full EA - twice) and UKL-UPL (Partial EA - once). 18, Minister of Finance Land Acquisition Committee for the Implementation of Regulation No. 58 Year Development in the Public Interest Fees. This regulation 2008 describes the components, amount, and disbursement means for fees for the land acquisition committee. 19. Law No. 41 on Forestry Procedures to Settle Land Ownership Conflict in Forest (plus Constitutional Court Area. This law clarifies that development activities other than Decision No. 35/PUU- forestry are permissible in selective manner in order to avoid X/2012) significant damage that can reduce forest functions. 20. MOHA Regulation No. 52 Guidelines on the Recognition and Protection of Indigenous Year 2014 People. This regulation contains the guidelines for protecting indigenous groups, starting from the formation of the committee, the stages of recognition and protection, dispute resolution, guidance and supervision, as well as its funding. 37 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 No. Regulations Theme and General Objective 21. Ministerial Regulation of (Adjustment) of Ministerial Regulation No. P.44 Year 2012 on MOHA No. P.62/2013 the Establishment of Forest Areas 22. Regulation of the Minister Procedures for Determination of Communal Land Rights of of Land Agency and Indigenous Peoples and Communities Located in the Spatial Development No. Specific Area. This regulation contains the determination and 9 Year 2015 transitional provisions concerning communal land rights of indigenous people and communities located in the specific area 23 Regulation of the Minister Location Permission. This regulation describes the permits that of Land Agency and should be obtained in order to acquire land. It regulates the area Spatial Development No. of the land and confirms the area of the land within existing spatial 5 Year 2015 plans, and also outlines the procedures, rights, liabilities, and monitoring and evaluation of the permit holders. 24 Ministry of Home Affairs Guidelines for Implementation of Strategic Environmental Regulation No. 67 Year Assessments in the Preparation or Evaluation of Regional 2012 Development Plans. This regulation outlines the process of creating and implementing the Strategic Environmental Assessment (KLHS) which is conducted during the preparation and evaluation of Regional Long Term Development Plans (RPJPD); Regional Medium Term Development Plans (RPJMD); and/or policy, plan, and/or program that potentially inflict environmental impact and/or risk as the consequence of the Strategic Plan of the Regional Work Units in the local governments. 25. Regulation of Ministry of Local Communities Empowerment Through Forest Forestry No. Partnership. Empowerment through Forest Partnership is an P.39/Menhut-II/2013 effort to enhance local communities' capabilities and autonomy in order to benefit from forest resources in an optimal and equitable way in order to increase the welfare of local communities. 26. Local Regulation of West Protection and Management of the Environment. This Lombok No. 3 Year 2013 regulation covers the detail of the duty and authority of local government; environmental management plan; utilization of natural resources; pollution control and/or destruction to the environment; preservation of the environment; hazardous waste management; rights, obligations, and prohibitions on the environment; environmental information system; communities’ role; environmental quality monitoring; supervision and coaching; administrative sanctions; environmental dispute resolution; investigation; criminal provisions; funding; and, transitional provisions. 5.3 COMPARISION OF INDONESIA LAWS AND REGULATIONS AND WORLD BANK SAFEGUARDS POLICIES 41. The activities in the IPF component need to comply with both Indonesian laws and regulations and World Bank safeguards policies. The goal is that all documents prepared under the IPF component will meet the requirements of the World Bank safeguards policies as indicated in the ESMF. With respect to the Integrated Tourism Master Plans (ITMPs), the TORs explain how this is to be done. Table 7 below summarizes a comparison focusing only on the World Bank policies that might be relevant with the preparation of the ITMPs (including DDPs) and Sectoral Plans. Most of the differences are related to the implementation of Indonesian laws and regulations in the preparation of UKL-UPL and AMDAL and the limited technical and institutional capacity to prepare and implement UKL-UPL and AMDAL; the 38 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 differences between the Indonesian laws and regulations and the Bank policies applicable to this project have been assessed. Table 7 provides the measures in the ESMF to fill address World Bank safeguards policy requirements that are not covered by Indonesia laws and regulations and their implementation. The IPF Project itself triggers several World Bank Safeguard policies including OP4.01 on Environmental Assessment, OP 4.04 on Natural Habitats, OP 4.11 on Physical Cultural Resources, OP 4.36 on Forest, OP 4.12 on Involuntary Resettlement and OP 4.10 on Indigenous Peoples. The ESMF requires that IPF outputs, particularly the ITMPs, be compliant with all relevant Bank safeguards policies, as listed the Comparison Table below. Table 7: Summary of Comparison between Safeguards Instruments Prepared under the Indonesian Environmental and Social Laws and Regulations and the World Bank Safeguard Policies which are Potentially Relevant in Preparing the ITMPs and Sectoral Plan World Bank Indonesia Laws and Regulations ESMF Safeguard OP/BP 4.01 • Labor and working conditions, • ITMP TORs require compliance with OP Environmental community health and safety, 4.01 Assessment indigenous peoples and cultural heritage are not consistently addressed in UKL-UPL and AMDAL.3 • Effective mitigation measures are not always provided for all significant impacts. • Community grievance mechanisms are rarely addressed in the AMDAL and UKL-UPLs. OP/BP 4.04 • The UKL-UPL (or AMDAL) documents • ESMF requires that the prohibitions, Natural only provide limited information on procedures and restrictions in OP 4.04 Habitats natural and/or critical habitats. Physical and OP 4.36 are applied in ITMPs and and investments located in protected areas sectoral plans automatically require AMDAL, but OP/BP 4.36 Indonesian regulations do not prohibit Forests or restrict activities that involve conversion or degradation of critical natural habitats or natural habitats including critical forests. OP/BP 4.11 • UKL-UPLs (or AMDAL) do not • ITMP TOR specifies data on physical Physical consistently assess impacts on physical cultural resources (PCR) that need to be Cultural cultural heritage and lack the planning collected during the planning process. Resources and program required to conserve the • ESMF includes a chance finds resources. procedure as a reference for planning • Physical investments rarely develop activities and an example for use in chance find protocols construction contracts supported by the • Physical cultural heritage aspects of a Program. physical investments are rarely discussed in public consultations required as part of the UKL-UPLs (or AMDAL) preparation stage. OP/BP 4.10 • There are no specific Indonesian laws • Verification and confirmation of the IPs Indigenous that regulate Indigenous Peoples (IPs) presence in the three priority Peoples exclusively, but recognition of the destinations has been done existence of IPs and need to involve • Where IPs presence is confirmed, the them in the development and access to ITMP will include a social assessment 39 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 natural resources are recognized in and a process of free, prior and informed various laws and regulations. consultation; ascertaining broad IPs (or Masyarakat Hukum Adat or Masyarakat Adat or Masyarakat Tradisional) community support; and measures to address adverse effects on the IPs and to provide them with culturally appropriate benefits. • The ESMF provides an Indigenous Peoples Planning Framework. OP/BP 4.12 • Laws on land acquisition are primarily • ESMF contains a Land Acquisition and Involuntary focused on land obtained for public Resettlement Policy Framework Resettlement developments. (LARPF) that provides guidelines for • Assistance for informal occupants or addressing land acquisition issues squatters is not specified associated with Detailed Development • Host communities are not explicitly Plans. covered in the GOI regulation • ESMF has included screening process • No specific separation by vulnerability for land acquisition in planning or by gender • The LARPF identifies required • Impact mitigation is not elaborated information on the vulnerable groups • Access restriction to designated parks (women, the very poor, disabled, elderly, and protected areas is not covered. etc.). • The LARPF includes provisions for resettlement assistance to affected informal occupants and those who do not have land • Compensation criteria include, among others, assistance to restore livelihoods for resettled persons. • A process framework (similar with Forest Partnership in Indonesian Legislation) is covered in the ESMF, to be prepared when plans may cause restrictions in access to natural resources in legally designated parks and protected areas. OP/BP 4.37 • There is no specific legislation on dam • The IPF Project will not finance Safety of safety. construction and/or rehabilitation of Dams dams. If a Detailed Development Plan includes construction or rehabilitation of a water supply weir or improvement of a system that depends on an existing weir, RIDA will ensure that the requirements of OP 4.37 for small dams are complied with in design and operation, i.e., dam safety features including inspection and maintenance programs are designed by a qualified civil engineer. 6.0 INCORPORATING ENVIRONMENTAL AND SOCIAL CONSIDERATIONS BASED ON BANK OPs INTO THE ITMPS AND OTHER DEVELOPMENT PLANS 42. The Integrated Tourism Master Plans (ITMPs) are intended to prevent the adverse impacts that can occur when tourism development proceeds in an unintegrated manner, such that growth in visitor arrivals outstrips provision of facilities to manage the burdens that growth 40 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 may impose on natural and cultural resources and host communities. However, because the ITMPs—and in particular the Detailed Development Plans (DDPs) produced as part of the ITMP assignment—will include recommended infrastructure which has the potential for adverse impacts, impact avoidance and mitigation should be part of the planning processes. This will be accomplished most effectively by incorporating requirements of Bank safeguards policies upstream, where they have maximum potential to prevent impacts, in contrast to downstream when plans are fixed and designs are proceeding, and the focus of safeguards is more on mitigation. 6.1 SAFEGUARDS IN INTEGRATED TOURISM MASTER PLANS 6.1.1 Baseline Data Collection 43. Incorporating safeguards in the ITMPs begins with baseline data collection and mapping, including: • Existing land uses and land use planning provided by spatial plans and any gaps between the two. • Spatial development patterns, especially growth patterns and trends of urban, semi- urban, and rural areas. • Planned new development initiatives related to economic development. • Tourism accommodations, attractions and their environmental, cultural or social significance, recreational areas and facilities, including planned new investments. • Land ownership (including land legacy issues - refer to LARPF para. 84-87) with particular emphasis on key tourism areas and strategically significant development locations. • Topography, vegetation, and hydrology. • Areas of environmental concern—protected areas, habitats, water bodies, irrigated paddy fields, natural hazard areas, etc. • Environmental health conditions—water and air quality, cleanliness, occurrence of water and vector borne diseases (malaria, dengue, etc.), and other health hazards, security and safety concerns, etc. • Areas of cultural significance—historic, religious, viewscapes, archeological sites, historic trails. • Indigenous peoples’ habitats and customary lands 6.1.2 Determination of Development Opportunities and Constraints 44. The ITMP planners will interpret the baseline data to develop a map of opportunities and constraints for environmentally and socially sustainable growth and for the various types of tourism facilities and supporting infrastructure. The map could present “no development” zones, zones suitable only for certain types of development, zones with little or no restriction on type of development, and zones that are particularly favorable as, for example, locations for waste management infrastructure. World Bank safeguards policies would be taken into account in this task. Elements of the policies that guide development toward positive outcomes will inform the process of identifying opportunities, and prohibitions and restrictions presented in some of the policies will become parts of the constraints. Policies that apply at this planning stage are: • OP 4.01 Environmental Assessment—to provide information to decision-makers for sustainable development, and its mitigating approach is the impact management hierarchy, from, in declining order of preference: prevent, minimize, mitigate, compensate. 41 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • OP 4.04 Natural Habitat—maintain biodiversity, through restrictions on conversion or degradation of critical and natural habitat, and preference for locating infrastructure on already-converted land. • OP 4.36 Forest to realize the potential of forest in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environmental services and values of forests • OP 4.10 Indigenous Peoples for among other reasons to avoid or minimize adverse effects on indigenous communities, including any resettlement, and free, prior, and informed consultation on and broad community support for projects that would affect them. • OP 4.11 Physical Cultural Resources which aims at protecting known and chance finds of cultural property • OP 4.12 Involuntary Resettlement with particular attention to avoiding or minimizing displacement, including economic displacement caused by restriction of access to customary natural resources. Areas that are identified in the baseline information as having land legacy issues will be assessed further through rapid assessment to be carried out by the ITMP consultant team. Land legacy issues can be considered as constraints from further development of the affected area in the ITMPs, until the issues are resolved in accordance with the ESMF, or if there is a clear and realistic plan to resolve this issue (with monitoring milestones and clear timeline) in compliance with the Indonesian laws and regulations and applicable World Bank Safeguards policies as indicated in the ESMF. The potential risks, opportunities and solution of this issue will be taken into account in the three development scenarios, possibly with a later development phase to be implemented depending on the assessment of the ITMPs consultant and agreement between the RIDA and the Bank. Detail on how to address legacy issues are presented in the LARPF paras. 84-87 of this ESMF. • Environmental, Health, and Safety Guidelines 20074 commonly referred to as the EHS Guidelines. The applicable parts are the General Guidelines, which include air, water, and noise standards; community and workplace safety; pollution prevention; energy and water conservation, etc. plus a number of the sectoral guidelines including: • Tourism and Hospitality Development • Waste Management Facilities • Water and Sanitation • Ports, Harbors and Terminals • Airports • Toll Roads • Electric Power Transmission and Distribution 45. The safeguards policies are presented in detail at the following website: http://www.worldbank.org/en/programs/environmental-and-social-policies-for-projects. The relevance of the sectoral EHS Guidelines at this early planning stage is primarily in site selection for various types of infrastructure. 6.1.3 Formulation of Alternatives 46. OP 4.01 requires analysis of alternatives as part of the impact assessment process. It also stresses informed consultation with affected communities and other stakeholders. The ITMP process incorporates key elements of strategic environmental and social assessment. ITMP planners will present at least three different spatial development scenarios to accommodate the projected growth and will assess the environmental and social impacts of each development scenario in sufficient detail to allow stakeholders to compare them in terms of positive and negative impacts and adherence to the requirements of the applicable World 4http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/our+approach/risk+mana gement/ehsguidelines 42 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Bank safeguards policies and GoI laws and regulations. The scenarios will be discussed with stakeholders, and a preferred scenario will be selected for further elaboration. Stakeholders will be consulted on the issues of cultural heritage preservation, natural asset protection, and community development associated with the preferred scenario. 6.1.4 Impact Assessment 47. The ITMPs will include (a) an assessment of potential environmental and social impacts, including cultural heritage, land, and/or resettlement as well as IPs related to the preferred development scenario, at an appropriate scale and level of detail, taking into account cumulative, indirect, and induced impacts and impacts of associated facilities and (b) a high- level mitigation and monitoring plan. Since site-specific plans and designs will not be known at this stage, the mitigation and monitoring plans will be commensurate to the level and type of information available at this scale. 48. Cumulative, indirect, and induced impacts and impacts of associated facilities will also be further assessed and addressed as part of the government’s planning process for detailed spatial plans as regulated by the Minister of Environment and Forestry Regulation No. 46 of 2016 pertaining to strategic environmental and social assessment (Kajian Lingkungan Hidup Strategis, or KLHS). KLHS is mandatory to be carried out as part of the preparation or evaluation of spatial plans (Rencana Tata Ruang, or RTR) or detailed spatial plans for the national, province or district/city level. The compiler of the KLHS will submit a written application for validation to the minister or governor as stated by the law and attach the following documents: Detailed spatial plans, KLHS report, and proof of competence of the KLHS compiler. The office of the minister or governor will form a committee to review and validate the KLHS report. Monitoring and evaluation of the implementation of the KLHS will be carry out by the minister at the national level, minister or head of agency for sector master plans, governor for KLHS approved and validated at the province level and the bupati/mayor for the KLHS approved and validated at the district/city level. Consequently, impacts of ITMP recommendations will be further assessed when spatial plans are revised to incorporate them, which may occur during the Program or after its completion. The KLHS will also address risks and mitigation measures. Mitigation measures in the KLHS will be enforceable, as the RTR and RTRW have a legal basis. Budget for implementing the KLHS will be from APBN (central budget) or APBD (province or district/city budget). 6.1.5 Awareness and Capacity for Implementation 49. The ITMP will identify local government and community awareness and capacity building needs for plan implementation and inclusive tourism development. Moreover, the TOR of the Program Management Support Consultants’ Services (also financed under the IPF) includes supporting RIDA in ensuring that all environmental and social safeguards are properly applied. It includes two senior international experts for environment and social/cultural to assist RIDA. Besides supporting RIDA in its program management responsibilities, the Consultant will evaluate the capacity of the environmental agencies in the destinations to oversee the preparation and implementation of high quality UKL-UPL, develop action plans for those that have capacity gaps and support implementation of the action plans. This will provide an assessment of current capacity to put into effect environmental and social mitigation plans and to carry out the important functions of monitoring and preserving the natural and cultural assets on which sustainable tourism will depend. The ITMP will include a capacity-strengthening plan. In addition, recognizing that communities have an important role in managing those same tourism assets, the ITMP will help define a community awareness-raising program. 6.1.6 Detailed Development Plans 50. The DDPs will provide maps at a scale of 1:5000 and detailed descriptions in terms of: existing and future typology and character of the site, detailed land use, specification of 43 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 tourism accommodation capacity and typology, tourism facilities, services and attractions, housing for tourism sector employees and their dependents, existing and planned infrastructure, building regulations and development control. The detailed development plans will provide dedicated recommended measures to manage and control development, including but not limited to: • Building densities, floor-space ratios, maximum building heights • Traffic generation • Water demand • Wastewater generation and management • Solid waste generation and waste management • Drainage and flood protection • Street lighting • Electricity demand • Broadband internet services • Natural hazards and risk mitigation • Architectural styles and heritage conservation • Road design standards to accommodate not only traffic demand, but also requirements for traffic management, pedestrians, road safety, landscaping, parking, signage, etc. • Landscaping associated with residences, tourist facilities, and other land uses 51. For Detailed Development Plans that indicate a need for land acquisition, or that will restrict access to protected areas, or where Indigenous Peoples are present, RIDA will ensure that appropriate instruments, i.e., a LARAP, a Plan for Action, or an IPP, respectively, are prepared subsequently by the agency or entity who will implement the physical investment recommended by the DDPs. The RIDA will ensure and monitor that once the specific physical development is defined with clear on-the-ground site, investment proponents (agency or entity, with the help of their consultants) prepare and implement the LARAP, Plan of Action and/or IPP in compliance the LARPF, Process Framework and IPPF, as described in Section 6.1.7.1, Appendix 10, and in Section 6.1.7.2, respectively. 52. The World Bank Group Environmental, Health, and Safety (EHS) Guidelines and safeguards policies will be used in preparing the elements of the plans and guidelines to which they are applicable. Relevant EHS Guidelines include the General Guidelines, which include effluent standards, ambient air quality standards, noise standards, providing for community safety, etc., and sectoral guidelines for: • Tourism and Hospitality Development • Ports, Harbors, and Terminals • Health Care Facilities • Waste Management Facilities • Water and Sanitation • Roads 53. Elements of DDPs that are based on the safeguards policies will include: • Environmental protection management plans that will provide guidelines to protect and restore natural areas. • Cultural, religious, historic, and archaeological management plan that will provide guidance to protect valued features including Visitor Management/Crowd Control Plans for tourism objects with limited carrying capacity such as temples, heritage sites and cultural villages. • These will include among other things proposed institutional arrangements to monitor the condition of natural and cultural assets and to implement the plans for their protection. 44 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Environmental and social assessment, including cumulative and indirect and induced impacts as well as the efficient use of water in domestic, commercial, and industrial uses, the recreational use of rivers and lakes and green space, scenic vistas, and viewpoints guidelines • Social Management Plan or Community Development plan that will provide guidelines to avoid or minimize potential social conflicts or adverse impacts due to the implementation of the development plan. • Land Acquisition and Resettlement Framework to guide stakeholders in implementing the development plan in case of potential involuntary land acquisition and resettlement. • Indigenous Peoples Planning Framework to guide stakeholders in implementing the development plan in case that activities potentially affect Indigenous Peoples. 6.1.7 Frameworks for Development of Social Safeguards Documents 54. The following social safeguards frameworks provides guidelines for the agency/entity and their consultant in preparing the safeguards instruments (such as LARAP, or Plan for Action or IPP) subsequently in the case physical investment recommended by the ITMPs (including DDPs) and Sectoral Plans that will be implemented involve land acquisition and affect IPs. 6.1.7.1 LAND ACQUISITION AND RESETTLEMENT POLICY FRAMEWORK (LARPF) 55. The purpose of this policy framework is to advise the Executing Agency (RIDA) on the principles, process, procedures, and organizational arrangements that apply to investments requiring land acquisition and/or involuntary resettlement. This LARPF is included in the ESMF to guide the preparation of the action plan required by OP 4.12 and Indonesian procedures for investment acquiring land or other assets and/or causing physical or economic dislocation. The common practice in other World Bank-supported operations in Indonesia is to prepare a Land Acquisition and Resettlement Action Plan (LARAP), which is equivalent to the Resettlement Action Plan (RAP) used in World Bank OP 4.12. 56. This framework applies for the following situation: ▪ Impacts caused by physical investments o resulting in involuntary land acquisition, relocation, loss of assets or loss of access to assets, loss of income sources or means of livelihood whether or not the Project Affected Persons (PAPs) must move to another location; o resulting in the involuntary restriction of access to legally designated parks and protected areas that would result in adverse impacts on the livelihoods of the PAPs. ▪ Activities resulting in involuntary land acquisition and resettlement in linked activities, o Directly and significantly related to the physical investment; o Necessary to achieve the objectives of the physical investment; and o Carried out, or planned to be carried out contemporaneously with the physical investment. 57. This framework relies on the World Bank OP 4.12 on Involuntary Resettlement. Specific provisions are included in this framework to address any aspect of the OP 4.12 that are not fully addressed in the Government of Indonesia laws and regulations. Refer to Table 6 on GoI’s main laws and regulations. 45 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Table 8: Laws and Regulations Relevant to the LARPF No. Law/Regulation General Theme and Goal 1. Law No. 2/2012 Land Acquisition for Project Activity for Public Interest. This law applies to development initiatives in the context of the national development or development of public facilities. The agencies or institutions that are eligible to acquire land through Law 2/2012 are any state institution, ministry and non-ministry government institution, provincial government, district/city government, and State-Owned Legal Entity/State-Owned Entity which is specially assigned by the Government. The government can also acquire land through establishing cooperation with state owned enterprises, regional government owned enterprises, and private enterprises (public private partnership). Land acquisition must be carried out through planning that involves all stakeholders and must be implemented by providing a feasible and just compensation or indemnification The acquisition of land in the public interest shall be performed in accordance with: a. the Regional Spatial Planning; b. the National/Regional Development Plan; c. the Strategic Plan; and d. the Working Plan of each Agency needing land 2. Presidential Land Acquisition and its Amendments. This Decree has been amended four-times. Regulation No. The key changes are highlighted: No. 40 of 2014 (…Land acquisition up to 5 hectare 71/2012 can be directly conducted by agency needing land with land right holders through a business transaction or other way agreed by both parties…); No. 99 of 2014 (…Head of Land Acquisition Implementation issues compensation value resulting from appraiser or public appraiser); No. 30 of 2015 (…Finance for land acquisition can be sourced from a company (Badan Usaha) as Agency needing land which has been given the right to act on behalf of state agency, ministerial, non-ministerial government agency, provincial government, and / or district government / city...; and the most updated one No. 148 of 2015 (…Land acquisition for public interest development purpose up to 5 hectares does not need location determination letter. Agency needing land to use appraiser for land valuation…). 3. Regulation of the Technical Guidelines on the Implementation of the Land Acquisition. This regulation Head of BPN RI is intended to provide legal framework of land acquisition for public use with National No. 5/2012 Land Agency. The first part of the regulation is arrangement of land acquisition committee that can be delegated from head of Provincial land office to regency/city land office. Head of National Land Agency (BPN) Regulation No. 5 of 2012 has been amended by No. 6 of 2015, which is highlighted a bailout scheme to accelerate infrastructure development. The government revised the Regulation of the Ministerial of Agrarian and Spatial Planning (ATR) No. 6 2015 for the Amendment Regulation of the National Land Agency (BPN) Number 5 Year 2012 on Technical Guidelines for the Implementation of Land Acquisition. This revision opens up an opportunity for private entrepreneurs to bailout land acquisition fund for public interest infrastructure projects. The bailout is replaced using state budget funds through the relevant ministries / agencies. 58. The main identified gaps between the OP 4.12 on Involuntary Resettlement and the Law 2/2012 that are of relevance with the IPF are: • Assistance to the PAPs who have no land rights such as sharecroppers, renters, squatters are not covered by the Law 2/2012 and its implementing regulations; • Facilitation for livelihood restorations for the PAPs, although income losses are compensated based on the valuation of the licensed independent appraisers, but is not arranged by Law 2/2012 and its implementing regulations. Gaps Between Law 2/2012 and OP 4.12 on Involuntary Resettlement OP 4.12 on Involuntary Law 2/2012 Gaps Gap filling measures in Resettlement. this ESMF 46 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Law No. 2/2012 No gaps for replacement The ESMF regulates the Compensation for asset value of the affected asset compensation regulates compensation with full replacement cost. asset. value based on Involuntary resettlement of assets based on the Indonesian regulation. must be avoided or appraisal made by a Law No. 2/2012 does not minimized as much as licensed/independent regulate resettlement in The ESMF regulates possible by considering appraiser in accordance detail despite it could be compensation for various alternative to market prices. an option; does specify affected persons who do options compensation for not owned land such as affected persons such as sharecroppers, renters, The regulation does not sharecroppers, renters, squatters; and livelihood stipulate in detail how the squatters; and does not restoration program in resettlement is performed regulate livelihood accordance with (tend to provide restoration program for conditions prior to land compensation in cash); project affected peoples. acquisition for project not regulating the However, this issues affected persons. recovery/improvement of were addressed in the income, compensation is recently issued See further Table 9 on provided only to the Presidential Regulation Entitlement Matrix land/building owner. 56/2017 (May 31,2017) on “Handling Social Impacts for the Provision of Land for National Strategic Projects”, compensation for those occupying government and state land, recognized having occupied such land for continuously at least ten years, compensation includes cost for dismantling houses, mobilization, house rent and support for income loss, and they are defined based on valuation of an independent party. 59. The overall objectives and principles for the implementation of physical investment5 that involves land acquisition are: a. Resettlement should be avoided where feasible, or minimized, exploring all viable alternative physical investment designs; b. Where it is not feasible to avoid resettlement, activities of land acquisition and resettlement should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the PAPs to share the physical investment benefits. The PAPs should be meaningfully consulted and should have opportunities to participate in planning and implementing the land acquisition and resettlement programs. c. PAPs should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-land acquisition and resettlement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. 5 The IPF will finance the preparation of ITMPs (including DDPs), Sectoral Master Plans, Program Management Support Services and Additional Studies and Technical assistance to support Results Areas 2,3 and 4, i.e., in SME, skill development and business environment. Therefore, the RPF is applicable as guidance for agency/entity and their consultants in preparing and implementing the LARAP for physical development involving land acquisition/resettlement, which will be implemented down the road based on the recommendation of the ITMPs (and DDPs). 47 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 60. The process of Land Acquisition including public consultations and disclosure as well as grievance redress, based on the Law No. 2 Year 2012 is presented in Figure 1 (preparation stage) and Figure 2 (implementation stage). 61. Likely category of Project Affected Persons. The framework anticipates that there would be two general categories of PAPs: (1) persons affected by the acquisition of privately owned land; and (2) persons affected who have lived on the government (state or local government)’s land but do not own the occupied land. These occupants fall into four categories: (a) persons who own and occupy dwellings and other structures built on state or government land without any recognizable legal right or claim to the land they occupy; (b) sharecroppers; (c) squatters; (d) renters of dwellings and other structures built on state or government land without any recognizable legal right or claim to the land they occupy; (e) encroachers, i.e., persons who aggrandize or extend their personal holdings by encroaching adjacent state or government land; (f) squatter landlords, i.e. persons who derive illegal rents from structures built on state or government land, but do not occupy such structures. Identification of the PAPs will be done during the preparation of LARAP through the census survey. 62. One other category of PAPs becomes relevant if a plan or investment involves a protected area. When Bank-supported projects may cause restrictions in access to natural resources in legally designated parks and protected areas, a Process Framework is required. The purpose of the process framework is to establish a process by which members of potentially affected communities participate in design of physical investment components, determination of measures necessary to achieve resettlement policy objectives, and implementation and monitoring of relevant physical investment activities. An example Process Framework is presented in Appendix 10. 63. A LARAP should adopt the following measures to ensure that the PAPs are: a. Informed about their options and rights pertaining to resettlement; b. Consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and c. Provided prompt and effective compensation at full replacement costs for losses of assets attributable directly to the physical investment. 64. If the impacts include physical relocation, a LARAP should also include measures ensuring that the PAPs are: a. Provided assistance (such as moving allowance) during relocation; and b. Provided with residential housing, or housing sites, or else, as required and agreed with the PAPs to at least the equivalent of the situation in the old sites. 65. Where necessary to achieve the objectives of land acquisition and resettlement, a LARAP should also include measures to ensure that PAPs are: a. Offered support after displacement for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and b. Provided with development assistance in addition to compensation measures. 66. At this stage, assessment of the potential PAPs who will be affected in the land acquisition and resettlement will define whether the entity proposing the investment should prepare a draft full LARAP or an Abbreviated LARAP6. The content of a full and an abbreviated 6As of OP 4.12, the need for a full LARAP versus an abbreviated LARAP refer to the level of significance of impacts, based primarily on the number of PAPs. 48 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 LARAPs are presented in Appendix 3. The content is more or less equivalent with the combination of activities under the Land Acquisition Plan and the Early Inventory of PAP, and Public Consultation under the law and regulations mentioned in Figure 1. Figure 1: Process of Land Acquisition in the Investment Preparation Stage7 Agency/entity reviews Spatial Planning. Land Acquisition Plan Form a Preparation Team to prepare early inventory of PAP & Public Consultation Early Inventory of PAP Public Consultation On Location Agree Disagree Form an Evaluation Team Determination of location Re-consultation & evaluation by Refuse evaluation team & decision by complaint Governor Accept PAP Appeal to complaint Administration Court Accept Refuse Change Location Accept PAP Appeal to Supreme Court Refuse Land Acquisition Implementation . 7 Summarized from the Law No. 2 Year 2012 49 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Figure 2: Process of Land Acquisition in the Investment Implementation Stage8 Agency/entity submits request Form Land Acquisition Implementation and Implementation Document Team and Task Forces Appointing License Inventory of Asset & Appraisal to Appraise PAP Identification of PAP Land & Asset Announcing Inventory & Identification result: Map & Nominative List Negotiation Reach the agreement Do not reach the agreement Pay Compensation Put money in consignation in Court for PAP after Court Rejected PAP appeal to Court Accepted PAP appeal to Supreme Court Accepted Construction Pay Compensation as PAP demanded Monitoring evaluation 67. Once an investment is selected, the entity proposing the investment needing land should prepare the draft full LARAP or the draft Abbreviated LARAP, which will be part of the FS preparation and be specified in the TOR of the FS consultants. 8Summarized from the Law No. 2 Year 2012 50 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 68. Eligibility criteria for defining various categories of PAPs. PAPs eligible for compensation for the affected assets are identified when the physical investment location is formally defined by the Governor Decree, are those (a) who have land rights ownership; (b) who have land management/use ownership; (c) who have “nadzir” for the donated land of “wakaf”; (d) land owners for land that used to be owned by adat; (e) “masyarakat hukum adat” (MHA or Masyarakat Adat or Masyarakat Tradisional); (f) those who hold basic control of land; and/or (h) those who own buildings/structures, plants, and other things related to the land. 69. Methods of valuing the affected assets. As required by Law No. 2 Year 2012 and its implementation regulations, the values of affected assets will be assessed by licensed appraisers who will be assigned by the provincial BPN (National Land Agency) in accordance with national procurement regulations. The values defined by the licensed appraisers will be used as a basis for negotiation with the PAPs. Types and compensation level will be defined based on the negotiation results between entities proposing the investment/physical investment needing land and the land or property owners. Value assessment will be carried out on per affected land plot basis which includes land, the space above and beneath land, buildings or structures, plants, things that relate to the affected land, and/or other loss that can be valued (e.g. non-physical loss that can be equivalent with monetary value; loss of jobs or income earning sources, cost for moving, cost for change of profession, and value for remaining property). The remaining property that is no longer physically or economically viable/habitable/usable can be compensated if the owners prefer to do so. 70. Land valuation/appraisal by the licensed appraisers will be carried out based on the MAPPI9 Standards as specified in the MAPPI Guidelines10. Compensation is comprised of market price plus transaction costs and other costs plus premium, in more detail as follows: a. Physical assets: land, buildings, structures, facilities, and plants, and other things related to the land acquired to restore to the owner a property of at least the same quality as that owned prior to the land acquisition; b. Non-physical assets: loss of jobs, loss of businesses, conversion of profession, emotional loss (solatium), transaction costs, interests, loss of remaining land, and other physical damage c. Premium: calculated from loss of jobs, loss of businesses, conversion of profession In principle, the details of physical and non-physical valuation methods undertaken by the licensed independent appraisers are presented below. Object Basis for valuation Land Market price and/or income lost Building The cost of making new building with considering the different between compensating new building and deteriorated building Plant Market price: The price of one cycle of harvesting The price in the market based on related institution price standard; Or cost based price: The cost of growing the plant up to present (before harvesting) Transaction cost Moving cost, tax, notarial cost Waiting compensation Bank deposit/lending interest Unutilized residual parcel Market price Other damage Recovery cost Total Cannot be less than non-speculation market price and based to the existing regulation Reflecting the real value of the property for the owner (PAP) 9 Indonesian Society of Appraisers (ISA) 10 Indonesian Valuation Standard (SPI) 306 which also refers to International Standards 51 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Object Basis for valuation Premium cost Premium cost due to unwilling to sell and considering invaluable cost (20 - 40 % of total physical price estimation) 71. Entitlements Matrix for the Project Affected Persons can see in Table 9 below: Table 9: Entitlements of Project Affected Persons Project Affected Persons Entitlements Land/asset owners who lose Compensation for loss of land and land and/or other assets other assets attached to the lost (including buildings, structures, land, based on value assessment utilities, trees, etc.) and loss of carried out by licensed appraisers; income Land/asset owners who lose Compensation for loss of sources temporarily or permanently their of income or livelihoods based on sources of income or livelihoods value assessment for non-physical carried out by licensed appraisers and facilitation for livelihood restoration Persons who own and occupy Compensation for loss of dwellings dwellings and other structure and other structure, for income built on state or government land sources or livelihoods and without any recognizable legal resettlement assistance, based on right or claim to the land they the assessment of the licensed occupy appraisers11 Renters of dwellings and other The project provides sufficient time structures built on state or (at least 2 months from the cut-off government land without any date/at the time of census survey) recognizable legal right or claim for the renters to find another place to the land they occupy or other assistance agreed by renters and agency/entity which may include moving allowance and transition allowance and livelihood assistance. Sharecroppers Assistance to livelihood restoration Squatters Compensation for building and structures. Assistance to livelihood restoration and facilitation to access public housing and transition and moving allowance as well as improvement to site. Encroachers, i.e., persons who Compensation for building and aggrandize or extend their structures. Assistance to livelihood personal holdings by restoration and facilitation to encroaching adjacent state or access public housing and government land transition and moving allowance as well as improvement to site. Encroachers who entered the Not entitled to any compensation project area after the publicly announced cut-off date 72. Forms of compensation. Compensation may take several forms: (a) cash; (b) land replacement/swap; (c) resettlement to other site; (d) shares ownership; or (e) other forms of compensation that are agreed both by the PAPs and the agency/entity requiring the land. 11 There was an issuance of Presidential Regulation 56/2017 (May 31,2017) on “Handling Social Impacts for the Provision of Land for National Strategic Projects”, compensation for those occupying government and state land, recognized having occupied such land for continuously at least ten years, compensation includes cost for dismantling houses, mobilization, house rent and support for income loss, and they are defined based on valuation of an independent party. 52 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Preferred compensation forms depend on the preference of the PAPs and compensation may take combination of these depending on the agreements between the PAPs and the agency requiring the land. 73. Consultations and disclosures. Consultations and disclosures for acquiring land start from the planning, preparation, and implementation phase. In brief summary, Law No. 2 Year 2012 and its implementing regulations12 specify that consultations should be carried out in the following activities: a. At planning stage: plan of the location of physical investment, purpose of the development, steps and time frame for land acquisition, roles of licensed appraisers in the asset valuation, forms of incentive or compensation that would be provided for the PAPs, eligible assets or object for compensation (physical and non-physical including premium), compensation for community facilities, and responsibility and rights of the eligible PAPs. Consultations will use public meetings, media, and information in the closest villages. Consultations will adopt a dialogue approach, and can take place more than one time, depending on the need and agreement reached. Agreement will be put in writing. The defined physical investment location requiring land will be disclosed to public in the media, on the websites of the provincial and city government, as well as on the website of the agency requiring the land. b. BPN will consult the owners of the asset during the inventory and the identification of the affected assets. Results of the inventory will be disclosed in the village/Kelurahan and Kecamatan offices for 14 days to receive complaints. c. Results of asset valuation done by the licensed appraisers will be provided to the PAPs and used as the basis for negotiations. d. Draft and final LARAP will be disclosed in the closest village/kelurahan where the physical investment requiring land acquisition is located, on the websites of the local agency and/or in Implementing Agency’s website. 74. Grievance Redress Mechanisms (GRM). Process, procedures, requirements as well as time for complaints to be solved during the land acquisition process will follow the Law 2 Year 2012 and its implementing regulations (including amendments). In addition, the agency/entity has to use the existing complaint handling system, if any, or establish a new one to receive and respond to complaints. In principle, objection to any aspect of the physical investment and land acquisition will be addressed through consultations to reach an agreement and settlement, and be resolved as much as possible at a physical investment level. Relevant institutions, such as the district/city, sub districts and villages governments will be involved in addressing the complaints. When the grievance cannot be addressed, it will be resolved through litigation procedures as set forth in Law No. 2 Year 2012 and Presidential Regulation No.71 Year 2012. There is no fee charged to the complainant. Grievance acceptance and the follow-up mechanism will ensure cultural and gender sensitivities of the entitled parties. Complaints and their follow-up should be recorded and documented and included in the biannual implementation progress report prepared by the agency/entity and submitted to RIDA, and its Technical Committee Team and the World Bank (Chapter 11). 75. The LARAP should include a clear grievance redress mechanism for the PAPs. It should specify the contact or venue to file complaints that are widely disseminated, service standards to respond to complaints, and documentation. 76. Organizational arrangements. Organizational arrangements for the process of acquiring land will follow Law No. 2 Year 2012 and its implementing regulations (including amendments). According to this Law, land acquisition process involves four stages: planning, preparation, implementation, and handover of the acquired land to the agency/entity needing 12 For details please refer to the law and implementing regulations specified in the paragraph 34. 53 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 it. The land acquisition process during preparation and implementation stage is presented in Figure 1 and 2, respectively. 77. Once an investment is selected, the agency/entity proposing the physical investment needing land should prepare the draft full LARAP or the draft Abbreviated LARAP. LARAPs will be prepared based on the information provided by the Land Acquisition Plan and Inventory and Identification Report of the BPN. The final LARAP will be signed off by the Mayor/District Head and the agency/entity requiring the land. The land acquisition process should be completed prior to the start of the construction. 78. BPN hires independent licensed appraisers through a procurement process based on Indonesian regulations. The appraisers will calculate the values of the physical and non- physical assets based on the Indonesian Valuation Standards (SPI) 306. Refer to paragraph 68. As mentioned earlier, the compensation level of the affected assets will be used as a basis for negotiation. 79. The agency/entity needing the land will pay the compensation as agreed in the negotiation. BPN will hand over the acquired land to the agency/entity once all compensation is paid and/or compensation is consigned in the court (for those who insist to disagree on the compensation). In practice, prior to consignment, the agency/entity needing the land and BPN adopt persuasive approach to those who do not accept the compensation. Similarly, the court who receives consignment use persuasion approach to the consignees to accept the compensation. By Law, once the handover process is completed, the agency/entity needing land can proceed with construction. 80. The relevant safeguards document for physical investments that do not entail large- scale resettlement is the abbreviated LARAP (see Table 11), whereas those involve large- scale resettlement, the agency/entity need to prepare a full LARAP. The Table is a guidance for agency/entity who will later on implement the physical investment recommended by the ITMPs (including DDPs) and the Sectoral Master Plans. While for the PforR Tourism Development Project, as it will finance only category B physical investment, in the case that such investment involves land acquisition for less than 40 households or less than 10% of productive assets, the agency/entity proposing the physical investment will have to prepare an abbreviated LARAP. Table 10. Instruments for the Land Acquisition and Resettlement Action Plan Number of Project Affected People (PAP)/Land Instrument Owner > 200 people (or > 40 households) or eliminating >10% of their productive asset, if land acquisition Full LARAP*) has not taken place at all ≤ 200 people (or ≤ 40 households) or eliminating ≤ 10% productive asset, without relocation, if land Abbreviated LARAP**) acquisition has not taken place at all In the case that an agency/entity has prepared a Review of the LAP or LARAP, should there Land Acquisition Plan (LAP) or Land Acquisition be any gaps with this LARPF, the and Resettlement Action Plan (LARAP) prior to agency/entity need to revise/update these investment/ physical investment appraisal document in compliance with the LARPF Tracer Study. If there is a gap between the In the case that the agency/entity proposing the land acquisition process and this LARPF, a physical investment has already acquired land, Corrective Action Plan needs to be partially or wholly prepared In the case a /physical investment leads to access A Plan for Action in reference to the restriction to designated parks or protected areas Process Framework (Annex 2) Note: The PforR only involve physical investment needing land from less 200 people (or ≤ 40 households) or eliminating ≤ 10% productive asset, without physical displacement. *) **) Outlines are presented in Annex 3 54 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 81. Review of LARAP. A LARAP or any instrument (specified in Table 10), in a form and substance in compliance with the LARPF prepared by the agency/entity proposing the physical investment will be reviewed by RIDA and the World Bank. The LARAP (or other instruments above) should be revised in accordance to this LARPF, in the case there is gaps between it and the LARPF. 82. Financing arrangements. Funds should cover compensation, operational, and supporting costs during the planning, preparation, implementation, handover of results, administration and management, and socialization. In principle, the funding will be available from the central government budget (APBN) and/or local government budget (APBD) or combination of these, under the agency who needs the land. Requirements for the operational and supporting budget from APBN is regulated by the Ministry of Finance, whereas that from APBD is regulated by the Ministry of Home Affairs. 83. The relevant elements of the LARAP should be included in the Bidding document for contractors which will be prepared by the agency/entity who will down the road implement the physical investment recommended by the ITMPs including DDPs and Sectoral Master Plans. Estimated costs for LARAP implementation should be included in the physical investment costs by the agency/entity who will implement the physical investment later on down the road. 84. Monitoring, Evaluation and Reporting. Implementation of LARAPs by the agency/entity implementing the physical investment will be regularly monitored and reviewed by the RIDA. Status and any pending issues as well as follow-up actions to be taken to address such issues will be included in the RIDA’s biannual report. RIDA will focus its monitoring and review on main indicators as specified in the approved LARAPs, which includes among others: (a) consultation process; (b) eligible PAPs; (c) agreed compensation level and forms; (d) payment of compensation and delivery of assistance; (e) implementation of livelihood restoration plan; (f) follow-up on the legal process of the acquired land/remaining land; (g) the effectiveness of complaint handling mechanisms; (h) number, type of complaints and follow up; (i) disclosures of the LARAPs and transparency during the process of land acquisition; etc. RIDA will share with the Bank the bi-annual report and information provided in the report will be used as a reference for Bank’s supervision. 85. Others forms of land access. The amendment of Presidential Regulation No. 71 Year 2012 on Land Acquisition (Presidential Regulation No. 40 Year 2014) allows that land acquisition for an area less than 5 ha can be carried out directly by the agency/entity requiring the land based on willing-buyer-willing-seller principle, exchange, or other schemes agreed by the two parties. In this case, the required land should be located in one area, and can be obtained in one fiscal year. The agency/entity requiring the land has to use licensed appraisers to assess the affected assets and other losses. The RIDA will undertake due diligence to ensure that such transaction meets the requirements of the LARAP which will identify in a protocol the criteria, conditions and process for willing buyer willing seller transactions as well as land access agreements or land donation agreement. Land legacy issues 86. The planning area of the ITMPs and DDPs might have some sites with land legacy issues. In this case, the consultant of the ITMPs should carry out an assessment to: (a) identify the sites (with map) with land legacy issues during the development of baseline information; (b) assess the potential impacts, risks and opportunities should such sites be included in the ITMPs and DDPs; (c) assess options for possible solutions, each with its risks and opportunities; (d) provide historical background, identify legacy issues and status of solutions that have been achieved by the local government and the likely solutions in the future 55 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 87. The assessment should be done in close discussions with the relevant local government agencies (could be provincial or district or cities), and carry out site visits and interviews with relevant stakeholders. Report of this assessment will be part of the information for the ITMPs consultant team that should be used as key consideration in analyzing and developing development scenario in the ITMPs and in recommending land development and physical investments in the DDPs. 88. The ITMPs consultant team will submit the Draft Legacy Assessment Report to RIDA. RIDA will consider the available options for resolving the legacy issue, taking into account the severity of issues and the feasibility of actions required to resolve them. RIDA will identify its preferred approach and consult with World Bank for its concurrence or further discussion. . 89. Possible options that might be feasible to proceed with the ITMPs and DDPs include: (a) retain the sites with legacy issues in the planning area with clear and agreed measures to mitigate risks as part of the provisions in the ITMPs and DDPs; (b) exclude/screen out the sites with legacy issues from the planning area, with provisional measures to avoid associated risks with the remaining planning area; (c) combination of (a) and (b) for the case that an acceptable solutions through phased-resolutions (issues can be solved one after the other gradually with clear time frame) can be defined based on the Indonesia regulations. 6.1.7.2 INDIGENOUS PEOPLES PLANNING FRAMEWORK (IPPF) 90. In the case that a physical investment recommended by the ITMPs and downstream plans would likely be located in areas with presence of IPs, the agency/entity/proponent of the physical investment implementing such investment must prepare an Indigenous Peoples Plan (IPP). In the case that physical investment needs to acquire land belonged to IPs community or individual of the IPs community, the LARPF in Subsection 6.1.7.1 above applies. As in the case of environmental and land acquisition/resettlement impacts, potential adverse impacts and positive effects of the physical investment on IPs, or involvement of IPs as beneficiaries will be identified once the land use development and/or physical investment area of influence are defined. 91. Law and Regulations related to IPs. This framework takes into account issues related to IPs as included in the following Law and Regulations: ▪ UUD 1945 (Amendment) Chapter 18, clause #2 and Chapter 281 clause #3; ▪ Law No. 41/1999 on Forestry (plus Constitutional Court Decision No. 35/PUU-X/2012), ▪ Ministry of Home Affairs (MOHA) Regulation No. 52 Year 2014 on the Guidelines on the Recognition and Protection of MHA; ▪ Ministerial Regulation of MOHA No. P.62 Year 2013 (adjustment of Ministerial Regulation No. P.44 Year 2012) on the Establishment of Forest Area; ▪ Joint Regulation of MOHA, Ministry of Forest, Ministry of Public Works and Land Agency No. 79 Year 2014 on Procedures to Settle Land Ownership Conflict in Forest Area; ▪ Regulation of the Minister of Land Agency and Spatial Development No. 9 Year 2015 on the Procedures to Establish the Land Communal rights on the MHA Land and Community Living in the Special Area; ▪ Law No. 6 Year 2014 on Villages; and ▪ Law No. 18 Year 2013 on Prevention and Alleviation of Deforestation (UUP3H). 92. Objectives. The main objective of this IPPF is to help ensure that land use development and/or physical investment is designed and implemented in a way that fosters 56 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 full respect for IPs’ identity, dignity, human rights, livelihood systems, and cultural uniqueness as defined by the IPs themselves to enable them to (i) receive culturally appropriate social and economic benefits; (ii) do not suffer adverse impacts as a result of the physical investment; and (iii) can participate actively in the physical investment. This IPPF safeguards the rights of IPs to participate and equitably receive culturally appropriate benefits from the physical investment. An IPP will be prepared if a project affects (positively or adversely) IPs communities. 93. The specific objectives of this framework are to: a. Ensure that IPs participate in and benefit from the physical investment as recommended by the ITMPs and downstream plans and implemented by the agencies/entities.; b. Avoid or minimize potentially adverse effects of the IPF Project on IPs, and if it is unavoidable, develop and implement mitigation measures based on free, prior, and informed consultation resulting in broad supports from the impacted IPs communities c. Maximize the potential positive effects of the IPF Project on the IPs, based on free, prior, and informed consultations with the IPs ensuring that the design and implementation of the physical investment incorporate aspirations and needs of the IPs. 94. There is no universally accepted definition of IPs. In different countries IPs may refer to by such terms as “Indigenous ethnic minorities,” “aboriginals,” “hill tribes,” “minority nationalities,” “scheduled tribes,” or “tribal groups.” In this IPPF, the term “Indigenous Peoples” is used in a generic sense to refer to a distinct social and cultural group possessing the following characteristics in varying degrees: a. Self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; b. Collective attachment to geographically distinct habitats or ancestral territories in the physical investment area and to the natural resources in these habitats and territories; c. Customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; an indigenous language, often different from the official language of the country or region. 95. The term “Indigenous Peoples” is often associated with “Masyarakat Hukum Adat” (or MHA—Customary Law Communities), or “Masyarakat Adat” (or Customary Communities), or “Masyarakat Tradisional” (or Traditional Communities) which is common terminology used in Indonesian laws and regulations to describe groups of people with similar characteristics as those IPs specified above. Ascertaining whether a particular group is considered as Indigenous Peoples, one should use the above criteria, and for the purpose of this IPPF, may require professional judgement. Screening and Assessment of Potential Impacts on IPs 96. Procedures and institutional arrangements. IPs communities are not prevalent in all the physical investment sites—they are likely to be found in particular village(s) of kabupaten/districts in particular provinces. Social and cultural experts assigned to the IPP team will screen for IPs presence based on the World Bank IPs Screening Study 2010. Further screening will be done based on the criteria of IPs specified in the IPPF in this ESMF, and criteria of Masyarakat Hukum Adat/Masyarakat Adat/Masyarakat Tradisional summarized from the relevant Indonesian regulations and local values. The following steps will be taken to ensure that, where IPs communities are present and affected by the physical investment, the investment caters to their specific needs. 57 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 a. Once the area for an investment is defined, screening activities for the presence of IPs will be conducted to verify and confirm the presence of the IPs in reference to the above characteristics in doing so, the assigned social development specialist will consult experts, local universities, or NGOs who have good knowledge or have worked on IPs in the area and use available references, e.g. World Bank IPs Screening Study 2010 and other sources. Further, the assigned social development specialist will consult the communities concerned and neighboring communities to confirm that there are IPs present. b. In the case that the presence of IPs is confirmed and they will be part of or affected by the physical investment, the assigned social development specialist will carry out a social assessment (SA), based on free, prior, and informed consultations (FPIC—refer to Annex 6 on the details) with the affected IPs communities that will lead to broad support of the IP community. The format and contents of the SA is provided in this IPPF. Potential adverse and positive effects of the physical investment will be identified during the SA preparation. c. IPP will be prepared based on this IPPF in the case that the physical investment affects (positively and/or adversely) IPs. In the case that IPs constitute the beneficiaries of the physical investment, the design and implementation of the physical investment(s) will accommodate the aspirations and needs of the IPs. In this case, the principles of FPICs and participation will apply. The format and content of IPP is provided in this IPPF. d. For the areas where IPs communities are identified, the RIDA will assign a social development specialist who has experienced in working with or on IPs. The specialist will assist RIDA to organize training, if needed, for relevant consultants preparing planning documents in how to work with IPs communities in a meaningful way to identify mechanisms for effective participation through free, prior, and informed consultations, and to address specific challenges in working with such groups on, for example, how to deal with groups that may be in conflict with the larger community, etc. e. Since consultants will be hired locally to the extent possible, they are expected to be familiar with such groups. Preference will be made to recruitment of local people with skills and qualifications fit to the physical investment. f. Where IPs communities are identified, efforts will be made to ensure that at least one Community Cadre is from the group and able to communicate easily with the group. g. Where the IP community speaks a language different from Bahasa Indonesia, facilitation and socialization will be held in a language that these communities can easily understand. Relevant brochures and documents will be translated in the appropriate language. Provision will be made in the physical investment budget to allow for additional translations of relevant documents. h. The above aims at ensuring that IPs communities participate fully in the physical investment with free, prior, and informed consultations, are aware of their rights and responsibilities, and are able to voice their needs during the social assessment and in the formulation of the IPP. The World Bank’s Social Development Specialist can be consulted to ensure that the above steps are implemented and well documented during physical investment implementation. 97. The agency/entity with the assistance of the Social Development Specialist will assesses whether the physical investment will affect the identified IP communities. A Social Assessment needs to be prepared by mapping the characteristics of IPs communities and by assessing potential impacts and aspirations and needs of the IPs communities. The Social Development Specialist will be responsible for preparing an IPP in case that the proposed 58 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 physical investment affects IPs communities. In the case that IPs communities are the sole or major beneficiaries of the proposed physical investment, an IPP is not needed; instead, all aspirations and needs of the IPs communities are part of the physical investment design. Preparing Social Assessment and Indigenous Peoples Plan (IPP) 98. The Social Development Specialist will conduct a screening of the impacts (both positive and adverse) that may be caused by a physical investment to determine what measures should to be taken and management instruments should be prepared. For a physical investment that affects IPs (whether adversely or positively), an IPP will be prepared in compliance with the IPPF. The scope and content of the IPP will be proportional to the physical investments and their impacts. The IPP is prepared with the participation of affected communities through a social assessment and free, prior, and informed consultation process, and demonstrates broad support to the physical investment and the IPP (guidance of preparing a Social Assessment and IPP is provided in Appendix 7 and 8, respectively). If all of the beneficiaries of a physical investment are IPs, an IPP is not necessary. In this case, elements of an IPP will be incorporated into the design of the physical investment. Consultations and Social Assessment for the ITMPs and Sectoral Plans/Studies 99. The RIDA, with the assistance of the ITMP consultant teams, will carry out public consultations on the TOR for ITMPs and Drafts ITMPs as well as Sectoral Plans at the central level, and in three destinations (Toba, Borobudur-Yogyakarta-Prambanan, and Lombok, as well as other destinations later on if the preparation of ITMPs are expanded to other destinations). A network of Masyarakat Adat such as AMAN (Aliansi Masyarakat Adat Nusantara or Indigenous Peoples Alliance of the Archipelago), local universities, representatives of the IP communities, as well as identified NGOs interested in and who have experienced in working with IPs will be invited to the public consultations, except in Borobudur destination where there is no IPs identified presence in this destination. Prior to consultations, the draft TOR for ITMPs and draft ITMPs both the English and Bahasa versions will be shared with the invitees (through websites or hard copies), including those four group of stakeholders. Follow-up consultations exclusively with a smaller group of those four stakeholders or with the IP communities (Focus Group Discussion-FGD) would be carried out once the necessity to do so is decided during the earlier public consultations. The ITMP consultant team will facilitate the public consultations and the FGD consultations. If necessary, the RIDA will hire a local facilitator who is familiar with the IPs and related issues to facilitate the group consultations. 100. As needed, in addition to above consultations with the potentially affected IPs will also be carried out by the ITMPs consultant team during the preparation of the draft ITMPs (including DDPs), particularly during the development of baseline, identifying and assessing potential impacts of three development scenario, in developing proposed land use development/physical investments and their potential impacts, and in developing schemes if the proposed development plan involves commercial development of the cultural resources and knowledge on IPs or restriction to the use of natural resources. These consultations should be carried out through a free, prior, informed consultations that lead to broad community supports on the development scenario and that lead to agreement to use of IPs’ resources prior to the proposed development is recommended in the ITMPs. Consultations will be done in a less formal way through focus-group discussions, inclusive (gender, inter- generational, the vulnerable), and with two-way dialogues between the ITMPs consultant team and the affected IP communities. If necessary, the consultant team may use local facilitator who can speak local language and understand the IPs cultural practice to facilitate the consultations. 101. The consultant team of ITMPs will document all consultations and all relevant inputs, suggestions and concerns as well as agreements of the consulted IPs and they should be part of the provisions/considerations in developing the three development scenarios, the DDPs 59 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 and use of the cultural and natural assets of the IPs in the tourism development as identified in the ITMPs (including DDPs). The ITMPs consultant will analyze the relative vulnerability of, and risks to the affected IP communities given their distinct circumstances and close ties to land and natural resources, as well as their lack of access to opportunities relative to other social groups in the communities or tourist destination in which they live. Documentations of the results of the consultations with IPs will be attached in the ITMPs. 102. Consultation of the TOR for ITMPs. During consultations of the TOR for ITMPs, RIDA will explain to the participants on the objectives, scope, methodology, process and expected outputs of the ITMPs (including DDPs). In addition to other issues, RIDA will specify the plan that IPs will be consulted and taken into account in the development process of ITMPs and in defining the selected scenario plan as well as in determining the recommended land use/physical investment plans. There will be at least three activities which need meaningful consultations with IPs: developing baseline data/information on the IPs presence/characteristics, identification of potential environmental and social impacts on IPs in the three development scenarios in the ITMPs and land use/physical investment plans in DDPs, and consultation plan during the preparation of the ITMPs. In this consultation, RIDA will invite participants to provide information or suggestion on the focus area or IPs to work with and sensitive issues that need to be given special attention to during the preparation of ITMPs. 103. Consultation of the Draft ITMPs. During the public consultations and FGD consultations (as needed) on the draft ITMPs, RIDA/ITMPs consultant team will explain the extent to which the draft ITMPs (including DDPs) have incorporated IPs issues, suggestions and concerns collected during the TOR for ITMPs consultations and during the process of ITMPs preparations. RIDA/ITMPs consultant team will verify and confirm with the stakeholders/participants that the proposed three development scenarios as well as the selected one, land use development/physical investments and alternative mitigation measures to address the potential environmental and social impacts have taken into account the suggestions, concerns and broad support of the IP communities that had been obtained during the previous consultations. 104. In summary, to ensure that the ITMPs (and DDPs) and Sectoral Plans and support to designing investment carefully consider the sensitivities of cultural tourism and unintended consequences, the following are the key measures that the RIDA (with the assistance of the Project Management Consultant Team) and ITMPs consultants, as far as IPs are concerned, need to take into account: • Meaningful, participatory, inclusive and culturally appropriate consultations with the identified potentially affected IP communities during the preparation of the plans, with free, prior, informed consultations that lead to broad community supports on such plans; • Involve local facilitators, NGOs and/or universities who have experienced in working with the IP communities, can speak the local language and understand the cultural practices of the IP communities; • Provide the IP communities with as detail as possible available information on the process and expected outputs (land use development and physical investment, as well as use of the IPs cultural assets, values and knowledge on IPs) of the plans and the likely positive and adverse impacts on them as early as possible prior to consultations; • Seek broad support from the IP communities through iterative participatory decision making process, and reconfirm their supports or agreements during the process of the development of the plans; 60 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Document the free, prior, informed consultations processes, results and agreements (or disagreements) and record this in the Social Assessment and in the IPP; • Disclose locally the Social Assessment and IPP to allow all members of the IP communities aware of the process and results that they have been engaged with; • Use tools (such as brochure in local language with pictures) that are easily understood by the IP communities for consultations. Social Assessment for the to-be implemented Physical Investment 105. The presence of IPs communities in the physical investment sites requires the agency/entity to conduct a Social Assessment to evaluate the physical investment ’s potential positive and adverse effects on the IPs, and to examine physical investment alternatives where adverse effects may be significant. A Social Assessment commences with a review of the legal and institutional framework that defines IPs’ involvement within the physical investment context. The assessment shall generate the necessary baseline information on the demographic, social, cultural, and political characteristics of the affected IP communities as well as the land and territories that they have traditionally owned or customarily used or occupied and the natural resources on which they depend. The social assessment shall utilize Participatory Rural Appraisal tools such as participatory mapping, historical trends, oral testimonies, etc. along with free, prior, informed consultations for stakeholder identification and analysis to craft culturally appropriate and gender-sensitive processes for meaningful consultation with IP communities at each stage of physical investment preparation and implementation. Methods for data collection shall observe culturally appropriate norms. 106. Potential adverse and positive effects of the physical investment shall be identified through the free, prior, informed consultation with the affected IP communities. In assessing these impacts, the IPs will be engaged in a Participatory Mapping activity in a free, prior, informed consultation to identify the physical investment location and potential impacts. The results of the activity will be presented in a plenary where participants can openly express his/her opinions on the pros and cons of the subject matter and generate consensus on possible mitigating measures that must be adopted by the physical investment. Gender- sensitive analysis of IPs’ vulnerability and risks brought about by the physical investment in comparison to other groups (IPs and non-IPs) will be made a key focus of the assessment. This entails the involvement of wives, unmarried women, and children in identifying potential risks and benefits associated with the physical investment. In some IP communities, this sector is often marginalized and their roles are limited to household chores. In effect, the assessment shall in the end identify and recommend the necessary measures to avoid adverse effects and enhancement or maximization of positive impacts. If avoidance is not possible, mitigation activities or alternatives will have to be mutually developed with IP communities through meaningful free, prior, informed consultation, to ensure that the IPs receive culturally appropriate benefits under the physical investment. A suggested outline for a Social Assessment is presented in Annex 8. 107. When avoidance is not feasible, the agency/entity will minimize, mitigate, or compensate for these impacts in a culturally appropriate manner and based on the Social Assessment prepare an IPP. The agency/entity’s proposed action will be developed with the free, prior, informed consultations with the affected IPs and contained in a time-bound plan IPP, or a broader community development plan. Information disclosure, consultation, and informed participation 108. The agency/entity proposing the physical investment will establish an ongoing relationship with the affected IP communities as early as possible in the physical investment planning and throughout the life of the physical investment. In physical investments where IPs are presence and affected, the consultation process will ensure their free, prior, and informed 61 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 consultations (FPIC) to obtain broad community support for the proposed physical investment and facilitate their informed participation on matters that affect them directly, such as proposed mitigation measures, the sharing of development benefits and opportunities, and implementation issues. The process of community engagement will be culturally appropriate and commensurate with the risks and potential impacts to the IPs. In particular, the process will include the following steps: ▪ Involve IPs’ representative bodies (for example, councils of elders or village councils, among others) ▪ Be inclusive of both women and men and of various age groups in a culturally appropriate manner ▪ Provide sufficient time for Indigenous Peoples’ collective decision-making processes ▪ Facilitate the Indigenous Peoples’ expression of their views, concerns, and proposals in the language of their choice, without external manipulation, interference, or coercion, and without intimidation Ensure that the grievance redress mechanism established for the physical investment, is culturally appropriate and accessible for IPs. The RIDA will ensure that the agency/entity makes the IPP available to the affected IP communities in an appropriate form, manner, and language prior to physical investment appraisal. 109. Grievance Redress Mechanism (GRM). The RIDA will have a complaint handling system that allows the public and IPs communities to file complaints, raise issues, and/or convey their aspirations regarding the physical investment (more detail in Chapter 10). The RIDA will also require the agency/entity implementing the physical investment to open a channel for complaint handling that can be easily accessed by the affected IPs (and the public in general). It can utilize the current complaint handling system if it is functioned well, or improve it to function well. The agency/entity may also seek assistance from a local NGO or university trusted by the IPs community to receive and verify complaints. Any complaints should be responded quickly or in a defined time period. A direct response on site, to the extent possible, is encouraged. All complaints and the responses need to be documented by the agency/entity: date of complaint, type of complaint, name/address/number of complainants, venue/channel of complaints (direct, letter, website, short text message, telephone, etc.), verification date and results, date of responses, type of responses, unit who give the responses, unresolved complaint and reason. If the complaint involved the IPs community at large, the options for resolution should be discussed with them through participatory meaningful dialogues. 110. Disclosures. The draft IPP including the Social Assessment will be disclosed by the agency/entity in respective physical investment sites where IPs are affected prior to consultations, and if necessary, the document will be prepared in the language of the IPs. In addition, it will be disclosed in the agency/entity’s website. The IPP will be also disclosed in the RIDA’s website. The revised/final IPP will be disclosed in the same venues as that of the draft IPP. Development benefits 111. The agency/entity will seek to identify, through the process of free, prior, and informed consultation with the affected communities of IPs, opportunities for culturally appropriate development benefits. Such opportunities should be commensurate with the degree of physical investment impacts, with the aim of improving their standard of living and livelihoods in a culturally appropriate manner, and to fostering the long-term sustainability of the natural resource on which they depend. 62 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Special requirements 112. Because IP communities may be particularly vulnerable to the physical investment circumstances described below, the following requirements will also apply in the circumstances indicated, in addition to the general requirements above. When any of these Special Requirements apply, the agency/entity will retain qualified and experienced external experts to assist it in conducting the Social Assessment. Impacts on traditional or customary lands under use 113. The IPs are often closely tied to their traditional or customary lands and natural resources on these lands. While these lands may not be under legal ownership pursuant to national law, use of these lands, including seasonal or cyclical use, by communities of Indigenous Peoples for their livelihoods, or for cultural, ceremonial, or spiritual purposes that define their identity and community, should be documented. The agency/entity will follow the process described in the paragraph below and under the section of Social Assessments above when traditional or customary lands are under use. 114. If the agency/entity proposes to locate the physical investment on, or commercially develop natural resources located within, traditional or customary lands under use, and develop cultural resources and knowledge of IPs, and adverse impacts can be expected on the livelihoods, or cultural, ceremonial, or spiritual uses that define the identity and community of the IPs, the agency/entity will respect their use by taking the following steps: • The agency/entity will document its efforts to avoid or at least minimize the size of land proposed for the physical investment • The IPs land use will be documented by experts in collaboration with the affected communities of IPs without prejudicing any IPs land claim • The affected communities of IPs will be informed of their rights with respect to these lands under national laws, including any national law recognizing customary rights or use • The agency/entity will offer affected communities of IPs compensation and undertake due process available to those with full legal title to land in the case of commercial development of their land under national laws, together with culturally appropriate development opportunities; land-based compensation or compensation-in-kind will be offered in lieu of cash compensation where feasible • The proponent of the physical investment will carry out free, prior, informed consultations with the affected communities of IPs, and document their informed participation and the outcomes of the consultations that reflect broad support from the IP communities on the proposed physical investment. • Any physical investment involving commercial development of the cultural resources and knowledge of IPs is conditional upon their prior agreement to such development. Relocation of Indigenous Peoples from traditional or customary land 115. The agency/entity proposing physical investment will consider feasible alternative physical investment designs to avoid the relocation of IPs from their communally held traditional or customary lands under use. If such relocation is unavoidable, the agency/entity will not proceed with the physical investment unless it enters into a good faith negotiation with the affected communities of IPs, and documents their informed participation and the successful outcome of the negotiation. The relocation will not be carried out without obtaining broad support from the affected IPs community as part of the FPIC process. A LARAP will be 63 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 prepared in accordance with the requirements specified in the LARPF, and will be compatible with the IPs’ cultural preferences. Where feasible, the agency/entity should provide land-based resettlement strategies for the relocated IPs. Relocated IPs should be able to return to their traditional or customary lands, should the reason for their relocation cease to exist. Physical investment requiring relocation of IPs from their communally held traditional or customary lands under use or have other significant adverse impacts on IPs is likely to be a Category A project and therefore is not eligible under PforR. Cultural resources 116. Where a physical investment proposes to use the cultural resources, knowledge, innovations, or practices of IPs for commercial purposes, the agency/entity will inform the IPs of: (i) their rights under national law; (ii) the scope and nature of the proposed commercial development; and (iii) the potential consequences of such development. The agency/entity will not proceed with such commercialization unless it: (i) enters into a good faith negotiation with the affected communities of IPs; (ii) documents their informed participation and the successful outcome of the negotiation; and (iii) provides for fair and equitable sharing of benefits from commercialization of such knowledge, innovation, or practice, consistent with their customs and traditions. Review, approval and implementation of IPP 117. Based on the screening carried out by the RIDA (with the assistance of the consultant) on the potential presence of the IP communities in, or who have collective attachment to, the physical investment site and area of influence, the agency/entity will be notified of the need to prepare an IPP. The preparation of the IPP will refer to this IPPF. 118. The RIDA will review the draft IPP and provide inputs, if any for revision. The RIDA will submit to the World Bank the revised draft IPP for review and approval prior to physical investment appraisal for financing. 119. The agency/entity and their consultant should include the elements of IPP in implementation of the physical investment. Cost incurred by the implementation of the IPP will be part of the physical investment cost. 120. The RIDA will monitor the implementation progress of the approved IPP and prepare a biannual report, which explains the progress of the implementation of the approved IPP, and evaluate whether the intended activities have reached the objectives with clear performance indicators and timeframe as specified in the IPP. The biannual report shall include the records on the complaints received and followed-up, and remaining unsolved issues. This biannual report will also report the implementation of the activities that need to be done by the contractors during the construction period. The biannual report will be shared with the Technical Team and the World Bank. Monitoring and Evaluation 121. RIDA will monitor and evaluate the agency/entity who will implement physical investment in preparing and implementing the IPP (including Social Assessment) ensuring that the IPPF in this ESMF is consistently followed. At the same time, RIDA will provide advice to the agency/entity in preparing and implementing the IPP. Monitoring and evaluation will focus on to what extent the agency/entity has engaged in a FPIC that lead to community broad supports and agreements, social assessment, livelihoods, and sustainability of the IPs’ cultural and values as well as disclosure and GRM system functioning. In the case that IPs’ cultural property and natural resources are commercially used for tourism development, monitoring and evaluation will also focus in the process and results of agreements between the agency/entity and the IPs community, and whether the IPs community gets a fair 64 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 compensation and/or benefit from such commercial use. The agency/entity would want to ask for assistance from the local IPs organization such as AMAN and local universities or experts to prepare and implement the IPP. 122. RIDA will require the agency/entity prepare and implement a corrective action plan in the case that based on the evaluation, it did not meet the requirements and agreements specified in the IPP. The corrective action plan will have to be developed through FPIC with broad support and agreement from the affected IPs community. 7.0 ORGANIZATIONAL ARRANGEMENTS AND INSTITUTIONAL ASSESSMENT AND CAPACITY- BUILDING FOR IMPLEMENTATION OF THE ESMF 7.1 INSTITUTIONAL CAPACITY REQUIREMENT 123. RIDA as the Executing Agency has the responsibility for implementation of the ESMF. RIDA is a well-established government agency with a growing, substantial workforce from different areas of expertise. Among the areas of expertise are Architecture, Engineering, Regional and Urban Planning, Environmental Engineering, Anthropology, Law and Economics. RIDA requires access to additional experts from other fields. RIDA’s core team will therefore develop a Technical Expert Team consisting of professional specialists stipulated through Decree (SK), especially related to environmental and social aspects. The Team will include: 1. Natural Resource Management and/or Biodiversity Expert 2. Landscape Architecture Expert 3. Tourism Expert 4. Regional and City Economics Expert 5. Environmental Engineering Expert 6. Geology Technician 7. Land Acquisition and Resettlement Expert 8. Social and Cultural Expert 9. Social Development Specialist The social development specialist should have an educational background in anthropology, sociology, planning or similar educational background. The TOR and qualifications for this specialist will be part of the advisory/Management Consultant Team. Preferably, the specialist should also be familiar with the World Bank policies and have experience with them in social studies in Indonesia. 10. Institutional Expert 11. GIS (Land)/Mapping Expert 12. Revitalization and Conservation Experts (Heritage) 13. Cultural Heritage Conservator 14. Health, Safety, and Environment Expert The specialist should be familiar with the Indonesian environmental, health, and safety regulations, especially related to UKL-UPL (OR AMDAL). It would be ideal if the specialist has the AMDAL Team Leader certificate from the Ministry of Environment and Forestry and has considerable experience in conducting AMDALs for infrastructure projects. 124. The specialists in the Technical Expert Team are tasked with: 1. Providing assistance to the RIDA Team in the coordination and synergy of program implementation related to the Tourism Development Program; 65 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 2. Assisting the RIDA Team in conducting activities and compiling documents related to the activities component of the Tourism Development Program; 3. Preparing and submitting reports on the implementation of their duties to the Head of RIDA through coordination with the RIDA Team. 125. Other capacity building that is needed before the pre-construction and construction stage is at the regional government level. It is important that both the MPWH as well as the Regional Working Unit (SKPD) and Development Planning Agency at Subnational Level (Bappeda) responsible for the implementation of the master plans receive training related to the preparation and implementation of environmental and social safeguard instruments, both with World Bank standards and regulations in Indonesia. Implementation of such trainings to address the gaps between World Bank and GOI requirements can be through training programs conducted by the Program Management Consultant or other trainers. 126. The capacities and capacity-building needs of other national agencies involved in the PforR Program and provincial and local government agencies that will be responsible for activities supported by the Program are described in the ESSA. Since they are not the agencies responsible for ESMF implementation, the information about them in the ESSA is not repeated in the ESMF. 7.2 CAPACITY BUILDING PROGRAM 127. The IPF component will also fund the PforR Program Management support for RIDA, including the Indonesia Tourism Development Program planning, budgeting, quality control, monitoring, monitoring, reporting and coordination to ensure that the program is in line with the program objectives and in accordance with the loan agreement. The duties for the Program Management Support team include: a. Providing overall Program management assistance; b. Coordinating Program activities; c. Creating synergies among all stakeholders; d. Ensuring accountability in the management, monitoring and financial reporting of the program; e. Screening potential Program investments; f. Assisting in the preparation of the program's consolidated annual spending proposal; g. Building a Transparent Information Management System for Tourism Development; h. Ensuring the consistent application of the Environmental and Social Management Framework (ESMF); i. Ensuring the active participation of local communities; j. Encouraging appropriate spatial planning practices in accordance with the Integrated Tourism Master Plan; k. Capacity building at the tourism destination level for monitoring and conservation of natural and cultural assets essential to tourism; l. Ensuring proper handling and resolution of complaints; m. Ensuring adequate capacity of all Program stakeholders; n. Ensuring timely delivery of reports and ensuring the presentation of relevant documents. 128. Capacity building for other key ministries is also essential to ensure that the existing human resources are ready to work in accordance with the task description that has been set in accordance with their respective fields (see also: Section 8 on budget for item 4.a). The 66 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 required training involving "key ministries" is as follows, but is not limited to and will prioritize tourism destination areas: Table 11. Ministry of Public Works and Housing Capacity Building Training Activities Item Training program Target Scope of Training Prioritize Tourism Audience Destination Areas 1 Process and - MPHW -Provide explanations Lombok, procedure for the - Regional regarding IPF-financed Borobudur- implementation of Working Unit programs Yogyakarta- ESMF (SKPD) - Environmental and Prambanan, Lake - ITMP social implications of IPF Toba Consultant activities - Purpose and objective of ESMF - Scope of study area of ESMF - Implementation of ESMF -Principles/rules/ procedures (screening), assessment, management, and monitoring of mitigation measures from potential environmental and social impacts of unknown investments at the time of appraisal of the program/ project - Measures and plans to mitigate, mitigate and/or offset negative impacts and enhance positive impacts, provision for estimating costs and allocating funds to finance such measures and plans, and containing information on the institutions and responsible parties to deal with Environmental and social impacts of activities 2 Implementation of - MPHW - Purpose and Objectives, Lombok, supervision and - SKPD Scope of Activities, Borobudur- compilation of - ITMP Preparation Techniques, Yogyakarta- Integrated Tourism Consultant Procedures and Prambanan, Lake Master Plan and Preparation System Toba document of planning / Documents related to research at environmental and social downstream level aspects such as: KLHS, UKL-UPL, LARAP 67 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 3 Improvement of - MPHW - Handling of waste in Lombok, Environmental - Local sustainable way Borobudur- Management Capacity Government - Drainage, sanitation, Yogyakarta- - Local solid waste management Prambanan, Lake Communities and sustainable Toba wastewater treatment - Introduce 3R (reduce - reuse - recycle) program 4 Green Building - MPHW - Benefit of green building Lombok, - ITMP - Green building principles Borobudur- Consultant (sustainability and social Yogyakarta- - Local justice) Prambanan, Lake Communities - Use of environmentally Toba friendly materials - Green building technology - Low environmental impact 5 Providing incentives - MPHW -Procedures for granting Lombok, and disincentives for - Agrarian and incentives and Borobudur- tourism activities Spatial disincentives in zoning Yogyakarta- Planning regulations related to Prambanan, Lake Ministry tourism activities Toba - SKPD - Incentives and - Private disincentives Sectors - Local communities Table 12. Tourism Ministry Capacity Building Training Activities Item Training program Target Scope of training Prioritize Tourism Destination Areas 1 Visitors Management - Tourism Ministry - Potential and Borobudur- in Tourism - SKPD challenges Yogyakarta- Destination Program - Local - Theory and Concept Prambanan communities of Development - NGOs (Environment and social challenges) - Indicator and standard based visitor management framework - Strategies and Implementation Technique 2. Business sector - Tourism - Implementation of Lombok, Borobudur- development (PPP) Ministry environmental and Yogyakarta- - Private Sectors social aspects of Prambanan, Lake - NGO review in the PPP Toba - Local scheme Community - SMEs Ministry - BKPM - Indonesia Investment Coordination Board 68 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 3. Sustainable - Tourism Ministry - Benefit (community Lombok, Borobudur- Homestay - SKPD empowerment) Yogyakarta- Development - Local - Best Case Study Prambanan, Lake (Eco-Homestay) Communities - Requirements and Toba - NGOs components - Implementation and management program 4. Mass tourism and - Tourism Ministry - Understanding mass Lombok, Borobudur- eco-tourism - SKPD tourism and eco- Yogyakarta- - Local tourism Prambanan, Lake Communities - Components of Toba - NGOs mass tourism development and eco- tourism - Steps and needs of mass tourism / eco- tourism development - Case studies 5. Information - - Tourism Ministry - Procedures for Lombok, Borobudur- Education - Tourism - SKPD information Yogyakarta- Promotion - Private Sector development, Prambanan, Lake - Local education, and Toba communities tourism promotion - NGOs - Development of heritage trails - Mapping procedures (tourism support facilities, supporting infrastructure, etc.) 6. Community - Tourism Ministry - Local Leadership Lombok, Borobudur- Empowerment - Coordinating - Local economic Yogyakarta- Ministry for activities to be Prambanan, Lake Human strengthen Toba Development Tourism/Heritage Trail and Cultural - Utilization of Affairs infrastructure and - Ministry of tourism facilities Cooperatives - Operational and Small-Scale Management Enterprises - Application of (UKM) technology (ICT, - SKPD System Management, - Local related Information Communities Tourism etc.) - NGOs - Procedures for the management of natural resources and the environment - Case study - Improvement on foreign languages (English, Japanese, etc.) Table 13. Ministry of Environment and Forestry (MOEF) Capacity Building Training Activities 69 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Item Training program Target Scope of Training 1 Managing water - MOEF - Theoretical concepts and case quality of Lake - SKPD studies of planning a wastewater Toba and - ITMP Consultant treatment facility development of - Local communities - Rehabilitation of critical sustainable deforestation areas through tree watershed planting management of - Introduction to eco-farming and Lake Toba sustainable farming method - Managing waste water and providing adequate clean water solutions - Implementing measures to improve water quality or sanitation awareness program on personal hygiene to local communities 2 Strengthening local - MOEF -Techniques for identifying identity (indigenous - SKPD indigenous people, indigenous people, flora and - ITMP Consultants villages, local economic activities, fauna) programs - Local communities flora and fauna (mapping) - Development of superior commodity centers (agriculture and plantation) - Development of local ecosystem potential (coral reef, mangrove area, freshwater fish culture etc.) 8.0 BUDGET FOR IMPLEMENTING THE ESMF 129. The ESMF is structured to screen, identify, avoid, mitigate, and eliminate the potential risks of environmental and social impacts that may arise from work financed under the IPF component. The IPF component is estimated at US$20 million (indicative budget allocations below) and for the initial costs towards the technical assistance component activities a Project Preparation Grant of $2 million has been made available.13 The table below includes the budget for the IPF component. The activities and capacities needed to address the safeguards aspects of the Project as described in the ESMF, including the capability building and staffing for safeguards are incorporated into the activities and TORs of the activities financed under the IPF themselves and therefore there is no need for a separate ESMF implementation budget (sub-budget item 4.a has been added to recognize this). The activities covered under item 4.a. include: • Assist RIDA in preparing bi-annual reports on the ESMF implementation for the IPF technical assistance component, to be submitted to the Program’s Steering Committee and the World Bank. Ensure that health and safety performance, environmental and social issues, including ESMF implementation, and management activities are included in the MIS and in regular progress reports. • When preparing TORs for other technical assistance, ensure that for any contracts that will be funded under the IPF, compliance with this ESMF, World Bank safeguards policies and World Bank Group Environmental, Health and Safety Guidelines (“EHS 13 The World Bank has also made available an advance out of the World Bank’s Project Preparation Facility in the amount not to exceed one million Dollars ($1,000,000) as provided below, and that the World Bank will: (i) increase the amount of the advance up to four million Dollars ($4,000,000), if and when such funds have been made available for the preparation of the proposed tourism development operation; for the purpose of the preparation of the proposed tourism development operation. The IPF component will refinance the Advance, and the ESMF applies to the Advance as well. 70 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Guidelines”) is made a part of the TORs. (See the ESMF for a summary of the applicable safeguards policies and www.ifc.org/ehsguidelines for the EHS Guidelines). • Develop and apply screening criteria, based on criteria presented in the ESSA, to ensure that proposed investments likely to have significant adverse impacts that are sensitive, diverse, or unprecedented on the environment and/or affected people are excluded from the Program. • Ensure that all environmental and social safeguards (including health and safety) are properly applied to program planning and implementation, including land acquisition and resettlement as well as indigenous peoples. • Ensure that potential adverse environmental and social impacts of proposed investments including induced, indirect, and cumulative impacts have been properly assessed. Review draft reports for TORs, plans, studies, designs, AMDALs, UKL- UPLs, IP Plans and Abbreviated LARAPs, prior to formal submission (if required) to the cognizant agency for review and approval and—where applicable—ensure that ESMF requirements have been adequately incorporated. For other adverse impacts ensure that effective and implementable management measures have been identified and effectively monitor implementation. Ensure that special consideration has been given to preservation or protection of critical natural and cultural assets that contribute to the overall tourism competitiveness. • When a proposed investment involves the acquisition of land or other assets, or the restriction of access to customarily-used will cause loss of income-generating or subsistence opportunity, the Consultant will review the Abbreviated LARAP to check if it includes provisions for livelihood restoration, and will monitor its implementation to ensure this occurs. • Monitor and ensure that all environmental management plans include health and safety measures which are in line with this ESMF, World Bank safeguards and guidelines. • The Operation will support the formulation of ITMP for each of the three priority tourism destinations. Taking into account the recommendations of these Master Plans, the Consultant will advise MPWH and other relevant national and destination-level agencies on the establishment of the mechanism and structure at each destination that will monitor and evaluate the condition of environmental, social and cultural assets; advise on the effectiveness of protective measures proposed; and will recommend corrective measures as necessary to ensure that tourism development will not be detrimental to the preservation of these assets. The Consultant will provide technical assistance and training to the monitoring/preservation entities, review their performance, and advice on appropriate modifications to improve their effectiveness. • Ensure active community participation • Monitor and evaluate the enforcement of spatial plans including urban land use plans (Rencana Tata Ruang Wilayah - RTRW) and detailed spatial plans (Rencana Detail Tata Ruang - RDTR) and building regulations, especially the enforcement of restrictions related to land use, build-up areas, building heights and densities, environmentally and culturally sensitive areas and landscapes, natural hazard zones, etc. • Ensure proper complaint handling and resolution • Provide training programs related to, amongst others, o Preparation and implementation of environmental and social safeguard policies and instruments, both with this ESMF, World Bank standards and regulations in Indonesia, with a focus on assessing and managing induced, indirect, and cumulative impacts;14 14 This will be complemented by ADB and WB, who are jointly assisting the Government of Indonesia in launching a network of learning centers (NLCs) for promoting environmentally and socially sustainable infrastructure development in Indonesia. These NLCs will build on the existing training centers run by various Universities (such as UI, IPB, UGM) and Government Agencies such as the Ministry of Public Works and Housing. This initiative will be part of the ongoing World Bank Australia 71 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 o Tourism-specific training for consultants that prepare AMDAL and UKL-UPL and for the agencies that review, approval and enforce these instruments. 130. This item will also cover an environmental specialist and a social specialist, both with international experience, in RIDA to provide additional capacity to provide time for RIDA to build its capacity. Table 14. ESMF Implementation Budget No. Name of Package Estimated Cost (USD) 1 Integrated Tourism Master Plan – Lake Toba 1,300,000 2 Integrated Tourism Master Plan – Lombok 1,300,000 3 Integrated Tourism Master Plan – Borobudur 1,300,000 4 Program Management Support Consultancy (5 years) 8,400,000 4.a Implementation of ESMF 1,000,000 5 Selected sectoral master plans 8,000,000 6 Studies and capacity building related to: skills and firm 1,700,000 development and business environment Total 22,000,000 9.0 MONITORING AND EVALUATION ARRANGEMENTS OF THE IMPLEMENTATION OF ESMF 131. Monitoring and evaluation is conducted periodically to ensure the development of tourism continues in the concept of sustainable development in accordance with the principles of management with capacity management, both regional capacity, the capacity of certain attractions, economic capacity, social capacity, and other resource capacity so as to extend the tourism life cycle In itself where the conception of conservation and preservation and commodification for the benefit of the economy can go hand in hand and the development of sustainable tourism can be realized. 132. During its supervision activities, the MPWH as Implementing Agency will review plans, studies, designs, and any UKL-UPL (or AMDALs) prepared under the Project to confirm that the requirements of the ESMF are being adequately incorporated. In the case of physical investments for which detailed design was prepared under the Project, RIDA supervision will include confirmation that the required UKL-UPL (or AMDAL), LARAP, and IP Plan have been prepared and approved and are of adequate quality. Supervision of construction and operation of those physical investments financed by the PforR will be undertaken through the PforR Program, not under the Project. Every six months, RIDA will prepare reports for the Steering Committee and World Bank on ESMF implementation. The World Bank will review and provide comments and technical advice on the issues included in the reports. RIDA will immediately inform the Steering Committee and World Bank Task Team of any circumstance or occurrence that could have a materially adverse impact on the environmental and social performance of the IPF Project. 10.0 GRIEVANCE REDRESS MECHANISM (GRM) 133. MPWH will establish a GRM team to receive and facilitate resolution of specific concerns of affected communities and physical investment participants not only limited to environmental and social issues, but other issues related to tourism development. The GRM will aim to resolve concerns promptly, in an impartial, understandable and transparent process Safeguards Partnership (WBASP) funded by the Department of Foreign Affairs and Trade (DFAT), Government of Australia. The next follow-up is tentatively planned for November 2017 to commence implementation of the proposed NLCs for environmental social sustainability. 72 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 tailored to the specific community, and at no cost or without retribution to the complainant/s. All complainants will be treated equally, regardless of origins, religion, citizenship status, social and economic background. GRM composition, procedures and functions will be designed early in the physical investment implementation phase based on the below principles and made available to the public. 134. As the tourism destination development program also engaged with other government agencies parties, MPWH will respond the grievances accordingly (see Figure 3). All grievances will be able to be filed through the official website [bpiw.pu.go.id]. All grievances will be reported in a written form to all related parties and be shared during the regular Technical Committee Team meeting for actions or for notifications. MPWH will maintain a log in which all grievances will be recorded, along with actions taken to resolve the grievance, feedback given to the complainant, and complainant’s response. 135. Other agencies involved in this Program who are members of the Steering Committee will also receive complaints relevant to the Program through their own websites or other venues (such as short text message, twitter, etc.). 136. The grievance mechanisms for complaints is as follows: 1. The public will submit complaint through a form on the RIDA website of the MPWH. 2. The complaint will be processed by the team formed by the MPWH-RIDA. 3. Relevant files will be forwarded to Units of Organizations in the MPWH (DGWR/DGHW/DGHS) within 3 working days and other Ministries/Agencies within 5 working days, while irrelevant ones will be recorded. 4. Responses will be processed by the Team and to be announced in the RIDA’s website as well as to be compiled as reports to the Head of RIDA. 5. The Head of RIDA will discuss it further in routine meeting with Technical Committee Team including complaints that are received through the Technical Committee Team’s ministries. RIDA will inform the World Bank of complaints received and report on their resolution. RIDA will also inform the public on access to the World Bank’s Grievance Redress Systems. 73 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Figure 3: Grievance Redress Mechanism All grievances will be reported through RIDA website Grievances will be reported in a written form and to be process by the team formed by MPHW-RIDA. 3 working days Relevant Irrelevant 3 working days Relevant 5 working days files will be forwarded MPWH Forward to relevant Ministries/Agencies DGWR/ DGHW/ DGHS Responses Responses Responses will be process byTeam Files will be recorded. Responses will be announce in Also will be compile RIDA Website as reports All reports will be submitted to Head of RIDA It will be discuss further in a routine Reports of complains meeting between Technical Committee and resolution will be Team inform to World Bank. 74 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 11.0 PUBLIC CONSULTATION AND DISCLOSURE 137. RIDA has carried out two-round public consultations on, first, the TOR for the ESMF and, second, the draft ESMF in three destinations and in Jakarta. 138. The TOR for the ESMF both in English and Bahasa Indonesia was disclosed in the RIDA/BPIW website bpiw.pu.go.id prior to the public consultations on the TOR for the ESMF. This first round of public consultations was carried out in Jakarta, Parapat (Lake Toba destination), Magelang (Borobudur-Yogyakarta-Prambanan destination), and in Senggigi (Lombok Island destination) during April 3-12, 2017. 139. RIDA completed the draft ESMF both in English and Bahasa Indonesia and disclosed them on its website on 22nd June 2017 prior to the second round of public consultations, on the draft ESMF. The draft ESMF was uploaded on RIDA/BPIW’s website http://bpiw.pu.go.id/uploads/ESMF_ENGLISH.pdf and http://bpiw.pu.go.id/uploads/ESMF_BAHASA.pdf on 22nd June 2017 and in the Bank Infoshop on 21st June 2017 (http://projects.worldbank.org/P157599?lang=en). 140. The second round of public consultations, on the draft ESMF, took place in Medan (Lake Toba destination), Mataram (Lombok Island destination) and Yogyakarta (Borobudur- Yogyakarta-Prambanan destination), as well as in Jakarta, during July 10-19, 2017. The same invitees of the first-round public consultations were invited for the second round with additional invitees added to the list as recommended by stakeholders who had attended the first-round consultations. For instance, invitees for the second-round public consultations for Lombok Island destination included the Leader of the Sasak Community, the Chairperson of AMAN Lombok, the Chair of AMAN and the Sasak Adat Assembly. Similarly, for Lake Toba destination, the RIDA invited the AMAN of Tano Batak and AMAN of North Sumatera. More NGOs were also invited during the second-round of public consultations. Several of them attended the consultations, however, the representative from AMAN attended the consultation in Lombok Island only. It was encouraging, however, that NGOs and representatives from Universities who attended the meeting in Medan and Mataram voiced the concern that the Masyarakat Adat or Masyarakat Lokal should be included in the preparation and implementation of the ITMPs. 141. The documentation (summary of minutes, list of invitees and attendees, photographs) related to the public consultations on the TOR for the ESMF and on the draft ESMF are presented in Appendix 9 and 10. 142. This ESMF has incorporated most of the key relevant issues and concerns obtained during both rounds of public consultations, among others, as listed below: • The planning of tourist destinations needs to take into account the travel patterns of both foreign and domestic tourists, along with necessary needs of improving tourism sector such as transportation (including basic infrastructure), accommodation, cuisine, attractions, travel packages offered by travel agencies, souvenirs, readiness of tour guides and others. • For each priority tourism destination, the ITMP needs to take into account potential tourism development at the grass root/village level including the existing community- based tourism initiatives, such as “Desa Wisata” (tourism village, homestays, alternative tourist attractions), involve local leaders, local villagers, local Adat community and local values, not only to maximize the social and economic benefits to local people but also to protect and preserve natural resources, environment and sociocultural assets, particularly those that contribute as tourist attractions. The roles of the government should facilitate the potential tourist development at the grass root/village level and mutual benefit of cooperation between the government, local communities and the private sector. 75 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • The ITMP should map the potentials of the tourism attractions and local initiatives, carry out infrastructure, social assets, environmental and social mapping as well as preparing the ITMP through intensive consultations with the local community. The ITMP should be able to identify potential collaboration between the local community, local government (including national parks authorities) and private sector for harnessing mutual economic benefit from tourism development and to protect the environmental, social and cultural assets. • Readiness of the local community (including IPs) for receiving large scale of tourism is of concern; participation of local community in the tourism sector is still limited due to capacity issues. Therefore, the Program is expected to strengthen the capacity (not only skills and competencies but also behavior) of the local communities (i.e., Masyarakat Adat, local tourism operators, local guides, villagers, etc.) to be able to increase their participation in the tourism sector. • Main concerns of infrastructure in all destinations are sanitation, water supply, traffic management, land use development and building code and permit, as well as land and building control management (including enforcement of the existing regulation on spatial development plans), access roads, access to internet, homestay management, greening, water quality (for Lake Toba), preservation of Adat Houses/villages/cultures/assets (Lake Toba and Pulau Lombok), and visitor management (particularly Borobudur). • Implementation of master plan needs strong coordination, monitoring and enforcement. There is no action against violations of development that can be inconsistent in the master plans that had been adopted. • Infrastructure development should consider eco-road and eco-construction with consideration for facilitating crossing by animals. Construction/maintenance of road infrastructure, small bridges etc. should also consider the crossing used by animals. Mortality of animals should be considered by not disconnecting existing habitat connectivity and no interference from vehicles passing through the road. • One of the problems in developing tourism industry is related to provision of sanitation amenities and facilities for local communities and tourists. The other obstacle to sustaining sanitation amenities is the lack of continuity in the operation and maintenance budget. The local community has no strong awareness of good sanitation, maintaining the public amenities and keeping them clean and functional. That local governments do not play their roles and carry out their responsibilities optimally also plays a part in shortening the lifespan of the public amenities. • Incorporate responsible tourist awareness program to ensure sustainability tourism destination from environmental degradation especially for domestic tourists and foreign tourists. 76 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 REFERENCES Badan Pengembangan Infrastruktur WIlayah. (2015). Laporan Akhir Inkubasi Kawasan Danau Toba. Jakarta, Indonesia: Kementerian Pekerjaan Umum dan Perumahan Rakyat. Direktorat Jenderal Tata Ruang. (2011). Laporan Akhir Rencana Tata Ruang Kawasan Borobudur. Jakarta, Indonesia: Kementerian Pekerjaan Umum dan Perumahan Rakyat. Direktorat Jenderal Tata Ruang. (2015). Laporan Akhir Penyusunan Rencana Pengembangan Wilayah Pengembangan Strategis Metro Medan–Tebing Tinggi–Dumai–Pekanbaru. Jakarta, Indonesia: Kementerian Pekerjaan Umum dan Perumahan Rakyat. Badan Pengembangan Infrastruktur Wilayah. (2016). Laporan Akhir Wilayah Pengembangan Strategis Yogyakarta–Solo–Semarang. Jakarta, Indonesia: Kementerian Pekerjaan Umum dan Perumahan Rakyat. Badan Pengembangan Infrastruktur WIlayah. (2016). Laporan Akhir Wilayah Pengembangan Strategis Tanjung – Mataram – Mandalika. Jakarta, Indonesia: Kementerian Pekerjaan Umum dan Perumahan Rakyat. Badan Pengembangan Infrastruktur WIlayah. (2015). Laporan Rencana Pengembangan Kawasan Magelang – Muntilan – Borobudur. Jakarta, Indonesia: Kementerian Pekerjaan Umum dan Perumahan Rakyat. Siregar, A.M. (1998). Review Rencana Teknik Lapangan Rehabilitasi Lahan dan Konservasi Tanah. Sub DAS: Asahan (DTA Danau Toba). Buku I (Buku Utama), Direktorat Rehabilitasi Lahan dan Konservasi Tanah, Departemen Kehutanan, Jakarta. BAPPENAS. Profil Kebencanaan Provinsi Jawa Tengah. Jakarta. BAPPENAS, BAPPEDA DIY, UNDP. (2008). Profil Kebencanaan Provinsi D.I. Yogyakarta 2008. Jakarta. BPS. (2015). Provinsi Jawa Tengah dalam Angka 2015. Jateng.bps.go.id. BPS. (2015). Provinsi DIY dalam Angka 2015. yogyakarta.bps.go.id. BPS. (2015). Provinsi Sumut dalam Angka 2015. sumut.bps.go.id BPS Provinsi Nusa Tenggara Barat. (2016). Provinsi Nusa Tenggara Barat dalam Angka 2016. ntb.bps.go.id BPS Kab. Lombok Tengah. (2016). Lombok Tengah dalam Angka 2016. Lomboktengahkab.bps.go.id BPS Kab. Lombok Timur. (2016). Lombok Timur dalam Angka 2016. Lomboktimurkab.bps.go.id. BPS Kab. Lombok Barat. (2016). Lombok Barat dalam Angka 2016. Lombokbaratkab.go.id. BPS Kab Lombok Utara. (2016). Lombok Utara dalam Angka 2016. Lombokutara.go.id BPS Kota Mataram. (2016). Kota Mataram dalam Angka 2016. Mataramkota.go.id. 77 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDICES 78 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 1 TOR OF THE INTEGRATED TOURISM MASTER PLAN TERMS OF REFERENCE FOR AN INTEGRATED TOURISM MASTER PLAN PREPARATION – [select one: LAKE TOBA / BOROBUDUR-YOGYAKARTA- PRAMBANAN / LOMBOK] TOURISM DESTINATION Draft I. INTRODUCTION The Government of Indonesia has decided to transform Indonesia’s economy using tourism as one of the main growth drivers. More specifically, it aims to increase foreign visitors, domestic visitors, foreign exchange earnings, employment and tourism competitiveness through the integrated development of priority tourism destinations. The Government is preparing a tourism development program under the overall guidance of the National Tourism Coordination Team, with the Ministry of Tourism (MoT) as coordinator and with the Ministry of Public Works and Housing (MPWH) as an executing agency, working together with several other Ministries and Agencies as implementing agencies, and bringing together APBN, APBD- I, and APBD-II15 to implement the Government’s program and achieve these goals. The Government decided to sequence the development of priority destinations and to start the program in 2017 with Lake Toba in North Sumatra province, Lombok in West Nusa Tenggara province and Borobudur-Yogyakarta-Prambanan in Central Java province and the Special Region of Yogyakarta. The program will include the preparation of Integrated Tourism Master Plans (ITMPs) for each priority destination in order to provide a strong framework for effective and sustainable tourism and land development. The Government of Indonesia intends to apply for financing from the World Bank toward the cost of the Indonesia Tourism Development Program (the “Operation”). The Government has requested for Advance and Grant financing for the preparation, and initial implementation, of the proposed Operation comprising of Program-for-Results financing and an Investment Project Financing component for selected consulting services. The World Bank has made available an Advance out of the World Bank’s Project Preparation Facility and a Grant from the Indonesia Infrastructure Support Trust Fund. The subject consulting services (“the Services”) include the development of an Integrated Tourism Master Plan for sustainable tourism development in [select one: Lake Toba destination / Borobudur-Yogyakarta-Prambanan destination / Lombok destination]. [in case of Borobudur-Yogyakarta-Prambanan destination, add: The Services include the development of a Visitor Management Plan for the Borobudur Temple Complex, as detailed in Annex 4]. These terms of reference will be consulted upon as part of the public consultation on the Environmental and Social Management Framework (ESMF), and any required revisions identified during this consultation process will be added to the terms of reference and discussed with the Consultant at Contract Negotiation. 15 APBN - Anggaran Pendapatan dan Belanja Negara Indonesia (State Expenditure Budget); APBDI - Anggaran Pendapatan dan Belanja Provinsi (Regional Expenditure Budget for Provincial level); APBDII - Anggaran Pendapatan dan Belanja Daerah (Regional Expenditure Budget for District level). 79 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 II. SCOPE OF WORK The Consultant will prepare an Integrated Tourism Master Plan, consisting of a) a phased overall development plan for the entire tourism destination area and detailed development plans for prioritized key tourism areas within the tourism destination area (defined in Annex 1); b) an investment and financing plan for infrastructure and services; and c) an institutional development program and a capacity building program. The Integrated Tourism Master Plan will provide the necessary framework for effective and sustainable tourism development, and will guide the downstream revision and/or preparation of spatial plans, sectoral master plans and other relevant plans at the Central and subnational level (identified in Annex 3). An integrated approach is essential, combining international experience and local knowledge, seeking synergies between wide-ranging development initiatives, linking multi-sectoral infrastructure development with spatial development planning, and merging sustainable tourism development with the preservation of natural (including biodiversity), cultural heritage and social assets. Given the cumulative and induced impacts, and impacts of associated facilities, of tourism development, a holistic and systematic approach to the assessment of environmental, social and cultural heritage opportunities and constraints is warranted as part of the preparation of the Integrated Tourism Master Plan. Crucial is to actively engage a wide array of stakeholders throughout the planning process, including institutions at all levels of government, state owned enterprises (SOEs), the private sector and local communities. The scope of work for the preparation of the Integrated Tourism Master Plan includes the following eight broad categories of interrelated tasks: A. Analysis of the institutional and legal, regulatory and policy framework; B. Analysis of demand and opportunities for tourism destination area development; C. Analysis of baseline conditions of spatial plans, infrastructure gaps and visitor attractions and facilities; D. Articulation of environmental, social, socio-economic, and cultural heritage opportunities and constraints; E. Preparation of growth projections and development scenarios; F. Detailing of the preferred development scenario; G. Formulation of the integrated tourism master plan; and H. Ensure active stakeholder engagement. The Integrated Tourism Master Plan is conceived as a coordination platform for the development of the tourism destination and as the instrument that will pave the way for effective and sustainable tourism development. The Integrated Tourism Master plan is intended to prevent the adverse impacts that can occur when tourism development proceeds in an unintegrated manner, such that growth in visitor arrivals outstrips provision of facilities to manage the burdens that growth may impose on natural and cultural resources and host communities. It will identify the priority programs needed to strengthen tourism activities at the local level and will provide detailed recommendations for the preparation and revision of local and provincial spatial plans and sectoral master plans (if necessary), but is not in itself a spatial planning document with statutory effect under the Indonesian Urban Planning Framework. III. SPECIFIC TASKS The Consultant will conduct a number of activities that have been identified as essential for the preparation of the Integrated Tourism Master Plan for each of the eight broad categories of 80 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 interrelated tasks. The Consultant will make its own assessment, identify additional activities and requirements and prepare its work plan in the Technical Proposal accordingly. Tasks A, B, C and D will result in a thorough analysis and understanding of the baseline condition. Tasks E-G constitute a strategic and participatory planning exercise that will result in the formulation of the Integrated Tourism Master Plan. Active stakeholder engagement—Task H—is part and parcel of the entire approach throughout the assignment. While carrying out Tasks C, D, E, F, G and H, the Consultant will have to adopt and be in compliance with the ESMF of the Investment Project Financing for the National Tourism Development Program, which will be provided to the Consultant by the Regional Infrastructure Development Agency (RIDA) of the MPWH and made available at www. While carrying out this assignment, the Consultant is expected to set up, and perform the tasks from, a field office located in the destination. A. Analysis of the institutional and legal, regulatory and policy framework The Consultant will make a thorough analysis of the existing institutional and legal framework related to integrated tourism and spatial development in the tourism destination area. This includes identification of agencies responsible for tourism development, spatial development planning, infrastructure planning, as well as environmental, social and cultural management. The legal framework consists of spatial planning documents, such as the Rencana Tata Ruang Wilayah (RTRW) at kecamatan, kota/kabupaten, and provincial levels162 and the Rencana Detail Tata Ruang (RDTR); sectoral master plans, such as for water supply, solid waste management, and power supply; environmental and social management plans, such as AMDAL, UKL/UPLs, and LARAPs;17 Indigenous Peoples studies/documents; and cultural heritage site management plans, among others. The Consultant will include in the analysis the following specific activities: • Identification of the planning authority/authorities within the destination for the various components; e.g. land use, transport, utilities, and visitor management to main World Heritage Sites (WHSs). • Identification of all stakeholders and collaboration arrangements between them to develop the tourism program; e.g. governments, SOEs, private sector, communities, and nongovernmental organizations (NGOs). • Evaluation of the regulatory framework within which planning implementation will occur. • Review and evaluation of relevant existing spatial and sectoral development plans (including plans for national parks, if applicable), including all regulatory instruments and associated policy documents currently in place to guide and control development. B. Analysis of demand and opportunities for tourism destination area development 16 In Indonesia, subnational governance includes four levels: (1) province/ Provinci, (2) city/Kota and regency/Kabupaten, (3) sub-district/Kecamatan or district/Distrik and (4) urban community/Kelurahan or village/Desa. 17 AMDAL - Analisis Mengenai Dampak Lingkungan (the Indonesian environmental assessment process); UKL-UPLs - Upaya Pengelolaan Lingkungan Hidup / Upaya Pemantauan Lingkungan Hidup (Environmental Management Plan/Environmental Monitoring Plan); LARAP - Land Acquisition and Resettlement Action Plan. Refer also to the ESMF. 81 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 The Consultant will analyze local economic conditions and development trends to obtain a detailed understanding of the current situation and development potential of the tourism destination area in terms of population, employment, and regional economy with special focus on tourism development. This analysis will include the following specific activities: • Assemble and review information on population (including ethnic minorities, vulnerable groups, Indigenous Peoples (IPs)) and employment growth trends, including temporary residents (visitors) and in-migration of job seekers. • Assemble and review information on all areas of potential economic growth, such as agricultural production, fisheries, food processing, commercial enterprises, industry, and services including tourism and travel, to identify and assess the linkages between the various sectors of the economy affecting, and affected by, tourism development in the tourism destination area. • Assemble and review information on domestic and foreign visitors and related accommodation, facilities, and attractions, past visitor trends and projected growth, and related demand for new tourism enterprises and services with particular emphasis on the Market Analysis and Demand Assessment study commissioned by the World Bank Group under a separate contract (Add link to access each assessment – MoT and/or MPWH to upload). • Assemble and review information (i.e. from the Market Analysis and Demand Assessment study) on capabilities and skills of local businesses, especially local firms and communities to play an active role in, and benefit from, accelerated tourism development. C. Analysis of baseline conditions The Consultant will thoroughly analyze all aspects of relevance for tourism development, including spatial development trends and patterns, infrastructure and service provision, visitor attractions, and visitor facilities. The analysis should result in an in-depth understanding of the baseline condition for tourism development and will identify both spatial planning (C1) and infrastructure and service provision (C2) issues. C.1 Spatial planning baseline data analysis The Consultant will collect, assemble and analyze relevant information on spatial conditions, environment and culture, including but not limited to: • Existing land uses and land use planning provided by spatial plans and its gap. • Spatial development patterns, especially growth patterns and trends of urban, semi- urban, and rural areas. • Planned new development initiatives related to economic development. • Tourism accommodations, attractions and their environmental, cultural or social significance, recreation areas and facilities, including planned new investments. • Land ownership (including land legacy issues18) with particular emphasis on key tourism areas and strategically significant development locations. • Topography, vegetation and hydrology. 18 Refer to ESMF on LARPF paragraphs 84–87 on the tasks for ITMP Consultant to assess land legacy issues 82 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Areas of environmental concern and/or significance – protected areas, natural habitats, biodiversity, (endangered) species, water bodies, irrigated paddy fields, natural hazard areas, etc.19 • Environmental health conditions – water and air quality, cleanliness, occurrence of water and vector borne diseases (malaria, dengue, etc.) and other health hazards, security and safety concerns, etc. • Areas of cultural significance – historic, religious, viewscapes, archeological sites, historic trails. • If applicable, Indigenous Peoples (IPs) presence (with map), social economic characteristics, habitats and customary lands. • Social conflicts. C.2 Infrastructure and service provision baseline data analysis20 The Consultant will collect, assemble and analyze relevant information on infrastructure provision and service delivery, identify and quantify deficiencies and constraints. This includes the following activities: • Analysis of connectivity to/external access to the tourism destination area (based on the Market Analysis and Demand Assessment study), including identification of current condition, deficiencies and planned investments in airports and airlift capacity, ports, toll roads, national and provincial road network, railways, and the external (long distance) public transport system.21 • Detailed inventory of existing infrastructure and services and planned investment by both the private and public sector in the entire tourism destination area including roads and transport, drainage and flood protection, water supply, wastewater management, solid waste management, power supply, IT and tourism specific services and facilities. • Collect and provide all infrastructure maps (existing and planned infrastructure by the government and/or private sector). 19 [Add for Lake Toba destination TOR: Upon the request of the GOI, the World Bank has commissioned a water quality study for Lake Toba; the Consultant will receive the final study (expected in September 2017) to include these findings in the master planning process]. 20 The standards for water supply baselines are included in the SPM Permen PU 01/PRT/M/2014 and SNI 03- 7065-2005; for solid waste, SPM Permen PU 01/PRT/M/2014, Permen PU 03-2013, SNI 19-2454-2002 and for waste water, SPM Permen PU 01/PRT/M/2014. The Consultant will ensure that all baselines meet the appropriate standards for the tourism development objectives. 21 [Add for Lombok: Based on the Market Analysis and Demand Assessment, external access to Lombok is predominantly defined by: (i) Pamenang Port, located in the northern part of the island and serving the majority of international visitors arriving by speedboat; (ii) Lembar Port, located in the west, and serving the majority of domestic visitors; and (ii) Lombok International Airport, in the south, and expected to be the dominant gateway to the destination in the future; Add for Lake Toba: Based on the Market Analysis and Demand Assessment, the key gateway to Lake Toba destination is the Kualanamu International Airport for foreign visitors, and the Medan- Tebing Tinggi-Pematang Siantar-Parapat corridor (170 km), serving the majority of domestic and international visitors; Add for Borobudur-Yogyakarta-Prambanan: Based on the Market Analysis and Demand Assessment, the key entry points to Borobudur-Yogyakarta-Prambanan are: (i) for domestic visitors, the regional road network within the Yogyakarta-Solo-Semarang (JOGLOSEMAR) triangle; (ii) for international visitors, the current predominance of the Adi Sucipto International Airport in Yogyakarta is expected to shift after the construction of the new Kulon Progo Airport. The Consultant will review the applicable Master Plan and Development Plan (MPDP) for the relevant Strategic Development Region ( Wilayah Pengembangan Strategis, WPS) of JOGLOSEMAR and recommend which programs on its list of programs should be prioritized from a tourism program perspective. 83 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Detailed description and analysis of current infrastructure and service levels as baseline for program monitoring and evaluation at the tourism destination area level and the key tourism area level. • Identify and quantify current gaps in infrastructure provision and service delivery compared to national standards at the tourism destination area level and the key tourism area level. This includes establishment of baseline level of services for water supply, sanitation, solid waste, and roads at the kecamatan level using relevant MPWH standards. • Analyze if and to what extent planned public and private investments will alleviate or resolve identified deficiencies and what gaps remain. D. Articulation of environmental, social, socio-economic and cultural heritage opportunities and constraints The Integrated Tourism Master Plan will guide the scale and spatial location of future spatial growth, infrastructure, and establish policies and practices to ensure that key environmental, social, community and cultural heritage assets are protected and impacts are properly managed and monitored. An in-depth understanding of constraints and opportunities for development of the tourism destination area is indispensable to ensure that tourism development will be sustainable. The underpinnings of the tourism industry are the cultural heritage, natural environment (including biodiversity), and unique cultural identity. The Consultant therefore will collect and interpret the relevant baseline data and develop maps and reports of challenges, opportunities, and constraints for environmentally and socially sustainable growth and for the various types of tourism facilities and supporting infrastructure. Potential environmental and social impacts and risks of tourism development in general, and of the proposed infrastructure development and other activities specified in the Master Plan, will be assessed. Tourism development, if not managed carefully, may lead—for instance—to the degradation of protected areas, the loss of biodiversity and endangered species, and the degradation of culturally significant assets. Nonetheless, tourism also has a strong potential as a driving force in the conservation of the country’s environmental assets, protection of its biodiversity and natural habitats, the protection of cultural assets, as well as in environmental awareness and employment generation. Aligned with any bylaws/codes of protected area or WHSs buffer zones, the maps should present “no development” zones, zones suitable only for certain types of development, zones with little or no restriction on type of development, and any recommended building regulations, etc. The World Bank safeguards policies would be taken into account in this task, following guidance as presented in detail in the Environmental and Social Management Framework.22 Elements of the policies that guide development toward positive outcomes on environmental, social (including gender), socio-economic and cultural heritage conditions will be taken into account in identifying opportunities, and prohibitions and restrictions presented in some of the policies will become parts of the constraints. Policies that are most relevant at this planning stage23 are: • OP 4.01 Environmental Assessment and its impact management hierarchy – prevent, minimize, mitigate, and compensate in declining order of preference • OP 4.04 Natural Habitat and its restrictions on conversion of critical and natural habitat • OP 4.10 Indigenous Peoples that has among its objectives avoiding or minimizing adverse effects on indigenous communities 22 [Add: link to the website and/or draft document uploaded on WB and/or BPIW website]. 23 See also ESMF for reference 84 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • OP 4.11 Physical Cultural Resources which aims at protecting known and chance- finds of cultural property • OP 4.12 Involuntary Resettlement with particular attention to the principles of avoiding or minimizing displacement, including economic displacement through restriction of access to customary natural resources • Environmental, Health, and Safety Guidelines (World Bank Group, 2007 plus updates, commonly referred to as the EHS Guidelines)24. The applicable parts are the General Guidelines, which include air, water, and noise standards; community and workplace safety; pollution prevention; energy and water conservation, etc. plus a number of the sectoral guidelines including: ▪ Tourism and Hospitality Development ▪ Waste Management Facilities ▪ Water and Sanitation ▪ Ports, Harbors and Terminals ▪ Airports ▪ Toll Roads ▪ Electric Power Transmission and Distribution. The principles of the safeguards policies are presented in detail in the Environmental and Social Management Framework. The relevance of the sectoral EHS Guidelines in Task 5 is primarily in site selection for various types of infrastructure. Other aspects of the guidance they provide will be important in Task 7. E. Preparation of growth projections and development scenarios Based on the analysis of current conditions and growth potentials, the next step is to prepare growth projections (E1) and to translate these into spatial requirements in terms of possible development scenarios (E2) while taking identified opportunities and constraints (D) in due consideration. The Consultant will prepare GIS-based models for growth projections and for the preparation and visualization of different spatial development scenarios. It is expected that the model will be replicated and used in other tourism destinations and support the Ministry of Public Works and Housing and/or local authorities in the preparation of tourism development plans. E.1 Prepare growth projections and dedicated planning standards The Consultant will prepare growth projections for a period of 25 years and medium-term growth projections for 5 years, including tourism, other local economic sectors, population and employment. Population growth projections should consider permanent residents, temporary residents (foreign and domestic visitors), and possible influx of job seekers and their relatives attracted by economic opportunities because of accelerated tourism development. Visitor growth and related tourism employment projections will be derived from the Market Analysis and Demand Assessment study which allows for quantification of demand indicators such as peak visitor loads (at both the tourism destination area and key tourism area level), numbers of additional hotel rooms, additional capacity of transport networks (roads, airports etc.), numbers of skilled staff required etc. 24 www.ifc.org/ehsguidelines 85 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 E.2 Prepare and discuss alternative spatial development scenarios The Consultant will prepare at least three different spatial development scenarios to accommodate and guide the projected growth and will present and discuss the findings, proposed planning standards and the development scenarios with all relevant stakeholders. These scenarios shall reflect varying tourism growth concepts and differing development models of future land use, and related environmental, social, socio-economic and cultural heritage opportunities and constraints. One scenario will be selected for further elaboration, in close consultation with Government of Indonesia (GOI) and which reflects the views of all relevant stakeholders. This specific task would include the following activities: • Identify additional land needs for future residential, industrial, commercial, and tourism requirements, and infrastructure needs, including land requirements for housing of tourism employees and their relatives. • Identify competing demands for land, natural resources and infrastructure for tourism development and other (non-tourism) economic sectors. • Identify environmental, social, socio-economic and cultural heritage opportunities and constraints for growth (refer to task D). • Identify opportunities for clustering of development to increase efficiency of land use, infrastructure and service provision, including opportunities for combined and cross-subsidized service delivery for tourist accommodations and facilities and local (low-income) communities. • Assess infrastructure required in support of future development (roads, water supply, wastewater management, drainage and storm water management, solid waste management, housing, transportation, energy, telecommunications and other utilities). • Identify strategic interventions, areas or activities that could promote or facilitate the private sector, local governments, and communities in participating in the development of visitor-related infrastructure, facilities, and attractions. • Evaluate each development scenario in sufficient detail to allow stakeholders to compare them in terms of positive and negative economic, environmental, social (including gender) and cultural heritage impacts and adherence to the principles of the applicable World Bank safeguards policies. E.3 Preparation of a GIS-based spatial decision-making support system The Consultant will also prepare a GIS-based map that will show growth projections at the destination and link it with spatial development scenarios that will help stakeholders make the best decision based on the different scenario options. It is expected that the model could be replicated in other tourism destinations, by applying similar or different variables to the model that are considered important for the destinations. The MPWH will provide access to the relevant 1:25000 scale maps for the destination and, if available, 1:5000 scale maps relevant to the identified key tourism areas. The Consultant will use them to present a visual representation of the scenarios. F. Detailing of the preferred development scenario After selecting the preferred scenario, the next task is to prepare an overall development plan for the entire tourism destination area (F1) and detailed development plans for existing and selected future key tourism areas (F2) (See Annex 1 for spatial boundaries of target areas for planning). 86 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 F.1 Preparation of an overall development plan for the entire tourism destination area based on the preferred development scenario using GIS maps. Specific activities include: • Prepare a provisional land use map for the entire tourism destination area (for years 2022 and 2042) including the detailed location, shape and size of new development areas with special emphasis on tourism development. The map could present “no development” zones, zones suitable only for certain types of development (restricted), zones with little or no restriction on type of development, etc. • Identify issues (such as gaps, barriers) in the relevant legislative, policy, and planning frameworks, and their implementation, and provide recommendations that will benefit the sustainable outcomes of the tourism sector. The Consultant will provide specific recommendations on how to strengthen the existing programs and activities of the spatial and sectoral plans so that these can align with the vision proposed in the selected development scenario.25 • Identify and discuss land acquisition and tenure issues related to the preferred development scenario. • In close collaboration with relevant government agencies, the private sector and local communities evaluate, discuss and define for each existing and new key tourism area the optimal development perspective, including carrying capacity, typology and extent of visitor accommodation, facilities and services. • Evaluate phasing options and select priority existing and new key tourism areas for development with related detailed size and shape consistent with projected demand for all land uses and with special emphasis on tourism development in blocks of five years (2018-2022 / 2023-2027 / 2028-2032 / 2033-2037/ 2038-2042). The Market Analysis and Demand Assessment study already proposes priority existing and new key tourism areas (Annex 1), but these need to be refined, adjusted and/or confirmed as part of this task. • Prepare conceptual designs and cost estimates for all required infrastructure and services with planning horizon of 5 and 25 years respectively for the entire tourism destination area. • Identify major incremental threshold capacity needs (airport expansion, treatment plants, dump sites, etc.) and prepare a 25-year phasing plan for anticipated major threshold investment for all infrastructure and services. • Prepare an integrated phasing plan for location and timing of infrastructure and service provision in a gradual way, making sure it responds to the projected visitor demand and it is designed to support and guide tourism development and minimize risks, with a planning horizon of 5 years and 25 years respectively. • Assess the environmental, social (including IPs) and cultural heritage impacts related to the preferred development scenario at an appropriate scale and level of detail, taking into account cumulative, indirect and induced impacts and impacts of associated facilities, and prepare a high-level mitigation and monitoring plans in accordance with the ESMF. • Identify and discuss natural (including biodiversity) and cultural heritage preservation issues related to the preferred development scenario and explore solutions that are compatable, instead of competing, with the infrastructure and service provision of the preferred development scenario. 25Add for Borobudur-Yogyakarta-Prambanan: The Consultant will recommend, if applicable, prioritization of the tourism-relevant programs as identified in the MPDP. 87 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Identify local government and community awareness and capacity building needs for inclusive tourism development. • Identify opportunities and needs for skills development for tourism market supply (education, SME development). • Identify institutional arrangements to implement the development scenario. F.2 Preparation of detailed development plans for priority key tourism areas In close collaboration with relevant government agencies, the private sector and local communities, the Consultant will prepare detailed phased development plans (5 years planning horizon) for all current key tourism areas within the tourism destination area (existing clusters of hotel and visitor facilities and attractions) and for new key tourism areas that have been prioritized for tourism development in the first 5 years (2018-2022). The list of identified strategies, objectives, policies and programs included in the 5 year plans should be phased annually (2018 / 2019 / 2020 / 2021 / 2022). The plans should be presented at scale 1:5000 together with outline designs and cost estimates for all infrastructure and service provision using GIS-based maps. The Consultant will prepare the plan up to pre-feasibility level for selected infrastructure and service provision (e.g. 2018). The criteria for selection of infrastructure with pre-feasibility plan will be agreed by RIDA and the Consultant. The detailed development plans must be directly linked to projected visitor growth and must be flexible enough to allow for adjustment in case real growth exceeds or falls short of expectations over the years. The development plans will provide maps and detailed descriptions in terms of existing and future typology and character of the existing and prioritized new key tourism areas, detailed land use, specification of visitor accommodation capacity and typology, visitor facilities, services and attractions, housing for tourism sector employees and their relatives, existing and planned infrastructure and services, building regulations and development control. The detailed development plans will provide recommended dedicated planning standards and guidelines to manage and control development, including but not limited to: • Building densities, floor-space ratios, maximum building heights • Traffic planning and management • Water demand, distribution and management • Wastewater generation and management • Solid waste generation and waste management • Drainage and flood protection • Street lighting • Electricity demand • Broadband internet services • Natural hazards and risk mitigation • Architectural styles and heritage conservation • Road design standards to accommodate not only traffic demand, but also requirements for traffic management, pedestrians, road safety, landscaping, parking, signage, etc. • Landscaping associated with residences, visitor facilities, and other land uses • Environmental protection guidelines to protect and restore natural areas and biodiversity • Cultural, religious, historic and archaeological guidelines to protect valued features • Visitor Management/Crowd Control Plans for tourism sites with limited carrying capacity such as temples, heritage sites and cultural villages. 88 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Proposed institutional arrangements to monitor the condition of natural, social and cultural assets and to implement the plans for their protection • Green space, scenic vistas and view-points guidelines • Recreational use of rivers and lakes • Efficient use of water in domestic, commercial and industrial uses • Social Management Guidelines to avoid, or minimize potential social conflicts or adverse impacts due to the implementation of the development plan • Indigenous Peoples Planning Framework/Guidelines to guide stakeholders implementing the development plan in case proposed activities potentially affect Indigenous Peoples26 G. Formulation of the integrated tourism master plan,27 consisting of a phased tourism development plan (G1), an investment and financing plan for infrastructure and services (G2 and G3), an institutional development program (G4) and a capacity building program (G5)28 G.1 Prepare a phased tourism development plan Consolidate the results of the overall development plan (task F1) and the detailed development plans (task F2) and prepare a phased tourism development plan in GIS maps, consisting of: • a land-use plan (1:25,000) • a phasing plan showing priority locations for development in blocks of five years (2018-2022 / 2023-2027 / 2028-2032 / 2033-2037/2038-2042) • Detailed development plans for 5 years (scale 1:5,000) for all existing key tourism areas and for selected new key tourism areas prioritized for the first 5 years of the Program • a phased tourism accommodation, facilities and services development plan for 5 and 25 years respectively. • If the Detailed Development Plan indicates that a proposed physical development or land development/use changes would involve involuntary land acquisition and/or resettlement, the Consultant will specify the relevant section of the ESMF29 to address such land acquisition and/or resettlement. • a natural assets preservation and environmental and social management plan • a cultural heritage preservation management plan • a natural hazards risk mitigation plan • If the Detailed Development Plan indicates that a proposed physical development or land development/use changes would affect Indigenous Peoples, the Consultant will specify the relevant section of ESMF to address the impacts on Indigenous Peoples. 26 See link to the ESMF 27 The integrated tourism master plan will provide guidance to the local and provincial authorities during the revision process of local and provincial spatial and sectoral plans. The integrated tourism master plan will identify the priority programs, infrastructure and services needed to strengthen tourism activities on the destination. 28 See Annex 2 for indicative outline table of contents. 29 See the ESMF, including its specific Annexes, for guidance. 89 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • implementation arrangements including recommendations regarding legal and regulatory initiatives required to give statutory effect to the integrated tourism master plan and its component parts.30 G.2 Prepare a phased integrated infrastructure and services development plan Consolidate the results of the overall development plan (task F1) and the detailed development plans (task F2) and prepare an integrated and phased priority infrastructure and services development plan and related cost estimates for all sectors at prefeasibility level for 5 and 25 years respectively, together with conceptual designs. Prepare detailed cost estimates and an investment plan for the first five years. Prepare a 5-year financing plan including distinction of public and private sector contributions and evaluate the economic feasibility of proposed investments. The investment plan must be directly linked to projected visitor growth and must be flexible enough to allow for adjustment in case real growth exceeds or falls short of expectations over the years. The investment plan must support and guide tourism development and will include: • Area redevelopment • External access: airports and airlift capacity, ports, toll roads, national and provincial road network,31 railways, external (long distance) public transport • Internal access: internal road network, internal and short distance public transport facilities including water transport, non-motorized transport facilities, traffic management, sidewalks, road safety, parking, etc. 32 • Drainage and flood protection • Water supply • Wastewater management and sanitation • Solid waste management and cleanliness • Electricity supply • Street lighting • Public amenities • Broadband internet services • Specialized tourist related infrastructure such as visitor centers, marinas, jetties, boardwalks, hiking and biking tracks, pedestrian zones, signage, etc. G.3 Prepare a program of urgent 2018 infrastructure and services investments While the GOI budgeting process requires that ultimately by approximately August 2017 the investment program for fiscal year 2018 (January to December) is defined, a budget revision process continues. In anticipation of the preparation of the development scenarios and the infrastructure and services development plan, and to accelerate the development of the tourism destination areas, the highest-priority investments for these areas in 2018 must be identified by the Consultant by December 2017, and will be financed with any possible sources. 30In the event that it is determined that new laws or regulations are required to implement the master plan, these would be the subject of a separate engagement. 31 For the road network, which is part of the Program, this plan also has to include the needs in terms of maintenance and rehabilitation of existing road network for the five -year period. 32 For the road network, which is part of the Program, this plan also has to include the needs in terms of maintenance and rehabilitation of existing road network for the five -year period. 90 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Investment in improved external access is only marginally related to spatial planning of development within the tourism destination area. The need for and phasing of this sort of connectivity infrastructure largely depends on existing deficiencies and overall growth perspective. Informed decisions regarding this type of investment for 2018 can be responsibly made even though the spatial development scenarios are not ready yet. To this end the Consultant will prepare and discuss with all related government institutions an integrated investment program for gradual improvement of external access including all modes of transport on a schedule that can both keep pace with visitor growth and allow for adjustments if actual visitor numbers exceed or fall short of projections, with planning of 5 years and 25 years respectively, and identify urgent first year investment needs including: • Airports and airlift capacity • Ports • Toll roads, national and provincial road network (including maintenance and rehabilitation) • Railways • External (long distance) public transport system. In addition to external access, other highly urgent investments for fiscal year 2018 will need to be identified by December 2017 as well. The Consultant will timely prepare and discuss with all related government institutions a 2018 investment program of urgently needed investments that most likely will come as priority under the master plan. This may concern investments that resolve current deficiencies in infrastructure and service delivery but also other urgent interventions that have been identified at this stage of the Master Planning process as viable and inevitable, technically, environmentally and socially sound and allowing for gradual future upscaling in accordance with population and tourism growth and associated incremental demand for infrastructure and services. G.4 Prepare an institutional development program The Consultant will prepare an institutional development program for management of sustainable tourism development in the destination area. The institutional development program must ensure that all relevant government institutions are committed to implement the Integrated Tourism Master Plan in a concerted effort. Preparation of the institutional development program will be done in close collaboration with all stakeholders in the destination area (government institutions, SOEs, (semi-)government authorities, private sector, local communities, etc.) and will at least include the following activities: • Assessment of local government/sub-national government, central government (line ministries), private sector and local community interest and commitment to the realization of the integrated tourism master plan • Identification of roles and responsibilities of all relevant (semi-) government institutions in implementation of the integrated tourism master plan • Identification of management and coordination responsibilities, including annual action plan preparation, monitoring and evaluation of progress and performance indicators, environmental and social safeguards, etc. • Identification of planning and coordination mechanisms for management of development in the entire tourism destination area and specific arrangements as necessary for sub-areas, i.e. the key tourism areas, cultural heritage sites, environmentally and socially sensitive areas, etc. 91 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Identification of the need for downstream revision of formal (spatial) plans and regulations and identification of the responsible government institutions. G.5 Prepare a capacity building program The capacity building program must ensure that all stakeholders are ready and capable to implement the Integrated Tourism Master Plan. The capacity building program should cover relevant government institutions, the private sector and the local communities and will consist of: • A government institution capacity building program • A private sector, SME and skills development program, with a focus on enhancing competency based certification aligned with private sector needs and improving firm capabilities related to service quality. • A local community capacity building program Preparation of the capacity building program will be done in close collaboration with relevant stakeholders and will at least include the following activities: • Assessment of local government/sub-national government, central government (line ministries), private sector, and local community capacity to realize the integrated tourism master plan • Identification of institutional capacity building needs for management of tourism development • Identification of capacity-building needs for implementation of environmental and social mitigation and monitoring plans including safeguards. • Identification of community capacity building needs for inclusive tourism development • Identification of additional needs for private sector, SME and skills development • Identification of formal, non-formal, and mature-learner needs H. Ensure active stakeholder engagement Pro-active outreach and public presentations are essential to engage the private sector, local communities, local governments, and related central government institutions. Building on the initial stakeholder mapping33 and based on the Stakeholder Engagement Plan (as part of the Inception Report), through regular consultations with government institutions and other stakeholders, the Consultant should seek feedback and consensus on all intermediate and final deliverables.34 The Consultant shall ensure that all comments and/or considerations raised during the formal approval and ratification process are reflected in the final draft of the Integrated Tourism Master Plan. Seeking stakeholder feedback and support should at least extent to: • The purpose and vision of the Integrated Tourism Master Plan; • Range of tourism opportunities suited to the destination; • Diversity of land use development that should occur in the destination and where this development should occur; 33RIDA will share the mapping with the Consultant upon Contract Award. 34[ADD for Borobudur-Yogyakarta-Prambanan: The Consultant will ensure that the consultation process for the preparation of Borobudur’s Visitor Management Plan (Annex 4) will involve all relevant stakeholders including the newly established Badan Otorita, PT. TWC, Ministry of Education and Culture and Kabupaten Magelang. 92 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Potential environmental and social impacts and risks of the proposed land use/development plans/changes or physical development; this should be incorporated as consideration in developing alternative development/land use development scenario; • The proposed alternative development scenarios as well as the final preferred development scenario; • Roles and responsibilities of all relevant (semi-)government institutions in implementation of the integrated tourism master plan • Roles and responsibilities of local communities, associations, village, sub-district, district and provincial governments in the implementation of the integrated tourism master plan, particularly in managing the tourist attractions. • Existing and future employment opportunities in tourism, commercial enterprises, industry, agricultural production, etc.; • Potential areas where the private sector, local governments and SOEs are interested to invest in tourism-related sector; • Formal, non-formal and mature-learner education needs. • The final draft of the Integrated Tourism Master Plan IV. DELIVERABLES AND TIMELINE Task Deliverables Timeline (months from signing contract) Inception Report, including stakeholder 1 engagement plan Baseline Analysis Report (Task A, B, C, D) 4 Growth projections and development scenarios 5 (Task E) The overall development plan (Task F1) 9 Detailed development plan for priority key areas 9 (Task F2) Phased tourism development plan (Task G1) 11 Phased integrated infrastructure and services 11 development plan (Task G2) Program of urgent 2018 investments (Task G3) December 2017 Capacity building program (Task G4) 11 Final Integrated Tourism Master Plan (Task G) 12 V. KEY EXPERTS Position Minimum Qualifications 93 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 1. Team Leader (Urban Planner / Civil Relevant university level education Engineer) (Master’s degree) and at least 15 years’ relevant international experience 2. Tourism development expert Relevant university level education (Economist) (Master’s degree) and at least 15 years’ relevant international experience [for Borobudur-Yogyakarta-Prambanan: including relevant international experience with visitor management plans] 3. Urban / regional planner Relevant university level education (Master’s degree) and at least 10 years’ relevant experience 4. Architect / Urban designer Relevant university level education (Master’s degree) and at least 10 years’ relevant experience 5. Roads and transport expert (Roads Relevant university level education Engineer) (Master’s degree) and at least 10 years’ relevant experience 6. WATSAN and SWM expert Relevant university level education (Sanitary Engineer) (Master’s degree) and at least 10 years’ relevant experience 7. Environmental specialist Relevant university level education (Master’s degree) and at least 10 years’ relevant international experience 8. Social development specialist Relevant university level education (Master’s degree) and at least 10 years’ relevant experience 9. Cultural heritage expert Relevant university level education (Master’s degree) and at least 10 years’ relevant international experience [for Borobudur-Yogyakarta-Prambanan: at least 15 years’ relevant international experience, including experience with visitor management plans] 10. Institutional development / capacity Relevant university level education building expert (Master’s degree) and at least 10 years’ relevant experience 11. Skills development/firm capabilities Relevant university level education expert (Master’s degree) and at least 10 years’ relevant experience In addition to the key experts above, to perform the tasks, the Consultant has to provide non- key staff such and an airport specialist, a port specialist, a railway specialist, and a public transport specialist as part of a pool of experts and other staff, i.e. administration, mapping, technician, and other logistic operational support related to the tasks. 94 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Annex 1. Tourism Destination Area and Key Tourism Areas [select relevant section for each ITMP TOR]: Lombok Tourism Destination Area Today, Lombok is a tourism destination that is typically part of a ‘destination tour’ or a ‘side trip’ from Bali. To date, most of Lombok’s visitors visit the Gili Islands and nearby Senggigi. Lombok received 2 million visitors in 2015, of whom 52% were foreign visitors. 50% of these foreign visitors were from Europe and more than 18% from Australia. Being an island, Lombok’s external connectivity is defined by the quality and frequency of air and sea access. Most foreign visitors (68%) arrive over sea, primarily by speedboat from Bali to the Gili Islands. Domestic visitors also mostly arrive by sea (70%) but they typically use regular public ferry services. Air transport is used by around 30% of all visitors (foreign and domestic) to Lombok. The Gili Islands and Senggigi can absorb an increasing number of visitors, if managed well. For the Gili Islands to maintain their attractiveness in the future, environmental sustainability needs to be improved by addressing key basic services deficiencies (such as water, sanitation and solid waste management). For Senggigi’s development, and its northward development to Tanjung, it will be particularly important to establish and enforce planning controls to maintain its ‘boutique’ character, which was created through 20 years of small-scale hotel development. In the future, Lombok can also become a ‘destination base’ or an ‘enclave’ for some foreign source markets. Based on the Market Analysis and Demand Assessment, to realize Lombok’s full potential, a further phase of larger-scale hotel development (as is in the pipeline for the Mandalika Resort area) seems needed in the southern coast area, as this could incentivize the establishment of direct air routes to proximate source markets, especially Australia. The state-owned enterprise Indonesia Tourism Development Corporation (ITDC) is responsible for Mandalika’s development and has prepared a Detailed Master Plan for the area. To date, private investors have been reluctant to establish hotels in Mandalika, which has recently also been established as a special economic zone (SEZ) through the Government Regulation 52 of 2014. ITDC is now playing a ‘first-mover’ role by building new hotels and constructing on-site infrastructure, which can diversify Lombok’s tourism offer and attract new visitor markets to Mandalika (for an integrated resort experience) and along the greater southern coast (with high-end, low-density accommodation), if concerns related to the preservation of the natural environment (including cleanliness) are addressed. Sea transport is an important mode of arrival for all visitors to Lombok today but it is expected to shift. In 2015, 68% of international and 70% of domestic visitors arrived by sea respectively. In the case of foreign visitors, 63% of those arriving by sea arrive by fast boat to the Gili Islands (Pamenang Port) and 37% arrive to Lembar, by ferry (32%) and cruise (5%). In the case of domestic visitors, 82% arrive via ferry to Lembar Port and 18% by fast boat to the Gili Islands. The current share of air travel arrivals is 31%, but this is likely to increase significantly in the future considering the convenience of travel by air in comparison to travel by sea and considering that Lombok is expected to also become a destination on its own. Total visitors arriving by air is estimated to increase to 43% in 2021 and 66% in 2041. With increased hotel supply, air connectivity is expected to improve. For instance, direct flights from Australia to Lombok could be restored (building on Jetstar’s short-lived Perth- Lombok connection in 2014), and Australian visitors could visit Lombok as a base destination, rather than only as a side trip from Bali. Lombok, with resort development in the south, and related marketing, can also become a new destination for Chinese and other East Asian visitors. Middle Eastern visitor numbers to Lombok can grow from a low base, but there are limits to maintaining this fast growth due to the distance from, seasonality of, and alternative options 95 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 for this source market. Thailand, with 660,000 visitors from the Middle East in 2015 (36% growth since 2009), is an example of a successful destination for this market. The implications of pursuing a high-growth tourism scenario for planning and investment needs are presented in Figure 1. The Consultant will prepare an Integrated Tourism Master Plan consisting of: overall development plan for the tourism destination area, i.e. Lombok island (25 years) and detailed development plans (5 years) for priority key tourism areas, i.e.: a. Gili Islands-Senggigi area covering three Kecamatan: Batu Layar, Pemenang and Tanjung. b. Southern coast area covering four Kecamatan: Pujut, Praya Barat, Sekotong and Jerowaru. As part of Task F of the Services, the Consultant will adjust or confirm the priority key tourism areas. Figure 1: Lombok destination definition: Legend: 1. Senggigi in Kecamatan Batu Layar 2. Tanjung in Kecamatan Tanjung 3. Gili Islands in Kecamatan Pemenang 4. Kota Mataram 5. Mandalika in Kecamatan Pujut 6. Sekotong in Kecamatan Sekotong 7. Mekaki Bay in Kecamatan Pujut 8. Area Guling in Kecamatan Sekotong 9. Jogo Hills in Kecamatan Praya Barat 10. Pink Beach in Kecamatan Jerowaru 11. Selong Balanak in Kecamatan Praya Barat 12. Tanjung Aan in Kecamatan Pujut 13. Mount Rinjani in Kecamatan Sembalun Detailed implication for Integrated Tourism Master Plan Consultants’ Services: Integrated Tourism Master Plan consisting of: (a) overall development plan for Lombok island as a destination area (25 years) and (b) detailed development plans (5 years) for priority key tourism areas:  Gili Islands-Senggigi area including sites #1-3, and covering: Kecamatan Batu Layar in Kabupaten West Lombok; and Kecamatan Pemenang and Kecamatan Tanjung in Kabupaten North Lombok.  Southern coast area including sites #5-12, and covering: Kecamatan Pujut and Kecamatan Praya Barat in Kabupaten Central Lombok; Kecamatan Sekotong in Kabupaten West Lombok; and Kecamatan Jerowaru in Kabupaten East Lombok. 1. As part of Task F of the Services, the Consultant will adjust or confirm the priority key tourism areas and will provide recommendations on how to integrate the Mandalika development site with the framework of future works and tourism development proposed in the Integrated Tourism Master Plan. 96 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Lake Toba Tourism Destination Area Today, Lake Toba is largely a destination for local tourism, with declining appeal. The majority (>97%) of visitors to the Lake Toba tourism destination in 2015 are domestic visitors. Foreign visitors are mainly from Malaysia (50%) and Singapore (10%). Long-haul visitors (mainly from Northern Europe, especially the Netherlands and Germany) are mainly backpackers or ‘flash-packers’ (backpackers who spend more on accommodation) staying in Indonesia for longer periods of time (2 weeks or more). Most visitors to Lake Toba are residents from North Sumatera and arrive by car or bus from Medan (5 to 6 hours between Medan and Parapat). Parapat is the main gateway because of available accommodation and services and the ease of access to the other main attractions of Lake Toba, which are located on Samosir Island, accessible by ferry. The length of stay of varies between 1 and 3 nights. Road is the most often used mode of transport for external access. In 2015, 97% of domestic visitors arrived by land and the remaining by air, while 85% of foreign visitors arrived by air and the remaining by sea. Almost all international visitors to Lake Toba arrive at Kualanamu International Airport in Medan. In addition to domestic visitors travelling by road, all other visitors arriving by air and sea use roads to reach Paparat. Around 90% of visitors come to Parapat from Medan via the Medan-Tebing Tinggi–Pematang Sinatar–Parapat corridor (170km). The mode of transport is expected to remain similar to the current trends. In 2021 and 2041 around 97% of domestic visitors are expected to arrive by land and the remaining by air. For international visitors, the airport will remain the principal gateway, 85% are estimated to arrive by air in 2021 and 2041. It is expected that the Kualanamu International Airport will remain as the main gateway and the majority of visitors will still travel to Parapat from Medan. With improvements in environmental sustainability, accessibility and activities, Lake Toba can become an attractive destination for a wider variety of domestic and some foreign visitors. When the travel time is reduced from Medan to Parapat, it can open up Lake Toba for North Sumatran weekenders and day trippers. It can also unlock MICE (meetings, incentives, conferences, and events) visitors from Medan—an important opportunity to increase weekday occupancy (and overall hotel profitability and investment appeal). Lake Toba can also become part of several weekend options from Jakarta. Those visiting friends and relatives may visit more often, but perhaps for shorter periods. Proximity and enhanced attractions can draw short haul weekenders from Singapore and Malaysia. For the long-haul market, Lake Toba has limited growth potential due to its distance from other Indonesian destinations, which makes it difficult to integrate it into packaged tour offerings for foreigners, and because Europeans are expected to travel less far and take shorter holidays in the future. Advisory on Water Quality Improvement. Upon the request of the GOI, the World Bank has commissioned a water quality study for Lake Toba. The objective is to (a) identify the nature and extent of water quality impacts linked to pollution and distinguish point-sources (PS) and non-point sources (NPS); and (b) develop and recommend appropriate pollution control management and data monitoring and analysis options; and (c) discuss the options with relevant stakeholders for the improvement and preservation of the water quality in Lake Toba. The findings of the study will be made available to the Consultant in September 2017 (estimated delivery of final report), and the Consultant will incorporate these findings in preparing the Integrated Tourism Master Plan. The advisory study includes developing appropriate best practice to international standard pollution management options with the estimated budget for capital investment and maintenance cost. The Government will be able to make its own decision on the best option that is most suitable based on their needs and annual budget. The implications of pursuing a high-growth tourism scenario for planning and investment needs are presented in Figure 1. To ensure improvements in environmental 97 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 sustainability, the Consultant will prepare an Integrated Tourism Master Plan consisting of: overall development plan for the tourism destination area, i.e. as described in Presidential Regulation No. 81 No 2014 on “Spatial Plan of Lake Toba and Surrounding Areas”, and detailed development plans (5 years) for priority key tourism areas covering four Kecamatan: Girsang Sipangan Bolon (Parapat), Simanindo, Pangururan and Balige. As part of Task F of the Services, the Consultant will adjust or confirm the priority key tourism areas. Figure 1: Lake Toba Destination Definition Detailed implication for Integrated Tourism Master Plan Consultants’ Services: Integrated Tourism Master Plan consisting of: a) Overall development plan for Lake Toba as defined by the Presidential Regulation No. 81 No 2014 on “Spatial Plan of Lake Toba and Surrounding Areas” (25 years),35 with special attention (i.e. baselines and targets for) to wastewater and solid waste concerns: Simanando, Pangururan, Nainggolan, Onan Runggu, Palipi, Ronggur Nihuta, Silahisabungan, Merek, Muara, Baktiraja, Lintongnihuta, Paranginan, Pematang Silimahuta, Silimakuta, Purba, Haranggaol Horison, Dolok Pardamean, Pematang Sidamanik, Girsang Sipangan Bolon, Ajibata, Lumban Julu, Uluan, Porsea, Siantar Narumonda, Sigumpar, Laguboti, Balige, Tampahan, Sianjur Mulamula, Harian and Sitiotio. b) Detailed development plans (5 years) for priority key tourism areas: 35 The Lake Toba destination defined as per the Presidential Regulation No. 81 No 2014 includes all the Kecamatan within the projected Outer Ring Road, except for Kecamatan Kerajaan and Kecamatan Sumbul, which are further away from the tourism destination and have not been identified as key tourism areas. To the extent that the Outer Ring Road is identified under task C.2 as critical to external connectivity of the tourism destination, the Consultant will provide tourism-specific recommendations with regard to all relevant segments of this Road. 98 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017  Parapat in Kecamatan Girsang Sipangan Bolon in Kabupaten Simalungun and Kecamatan Simanindo and Kecamatan Pangururan in Kabupaten Samosir.  Kecamatan Balige in Kabupaten Toba Samosir. 99 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Borobudur-Yogya-Prambanan Tourism Destination In JOGLOSEMAR, Borobudur, Kota Yogyakarta, and Prambanan are the main drivers of tourism growth. Other areas in Joglosemar, such as the city of Semarang, are unlikely to attract significant tourism. The vast majority (93%) of visitors to Borobudur Temple are domestic travelers who mostly arrive by car or bus. In 2015, 79% of domestic visitors arrived by land, 11% by air and the remaining by train. Most foreign visitors (65%) arrive by plane from Jakarta or Bali to Yogyakarta Adi Sucipto International Airport and are mainly from Europe (>80%). Hence, land transport is an important mode of transportation for domestic visitors while airports are the predominant gateways for foreign visitors. Yogyakarta is the destination base for domestic and foreign tourists, because it is a transport hub for road, air and rail, and the primary cluster of available accommodation (91% of hotel rooms are in DI Yogyakarta, 9% are in Kabupaten Magelang) and services, and because of its proximity to the main other attractions in the area such as Prambanan. Around 73% of visitors are estimated to come to Borobudur and Prambanan from Yogyakarta. Around 18% and 9% of the visitors come from Semarang and Solo respectively. Many domestic visitors and a significant proportion of foreign visitors to Yogyakarta do not visit Borobudur. Most visitors stay only a short period of time. The average length of stay in DI Yogyakarta and Kabupaten Magelang hotels is 1.8 nights for foreigners and 1.4 nights for domestic guests. Borobudur-Yogya-Prambanan is mostly expected to remain part of a destination tour for more foreign visitors (as ‘must-see’), but can also become a standalone destination for some proximity markets. If the Borobudur experience is enhanced, it could attract larger numbers of Asian visitors, for whom Borobudur-Yogya-Prambanan could become a standalone destination. Through enhanced attractions (such as the cultural villages around Borobudur and tourism experience enhancement in Kota Yogyakarta and Prambanan), the average length of stay and daily expenditures could increase. It is expected that the mode of arrival and visitor distribution pattern will remain similar to the current context. Domestic visitors will continue relying on land transport for travelling; e.g., by 2041 it is forecast that around 73% of domestic visitors will arrive by land and 18% by air. As part of the Trans Java toll road, a planned Bawen- Magelang-Yogyakarta corridor is expected to benefit visitors, but it cannot be justified from a tourism point of view as it principally serves regional connectivity. Foreign visitors are forecasted to continue arriving by air and the new Kulon Progo Airport is expected to become the predominant gateway. Key to enhancing tourism attraction, especially foreign visitors, is the development of the Yogyakarta, Borobudur, and Prambanan as a coherent cultural destination. It is envisaged to develop the destination as an internationally recognized symbol of Javanese traditional culture. The city of Yogyakarta is the main hub for tourism and transport infrastructure. Besides being a bustling town with a pleasant atmosphere and a famous shopping street (Malioboro), it is endowed with a rich living Javanese cultural heritage. The Kraton (palace) of Yogyakarata is a walled city within a city. It is not only the residence of the Sultan and his family, but it is also a living museum that centers on Javanese culture. At the Kraton, tourists can learn and see directly how Javanese culture continues to live and be preserved. The Palace houses a museum and there are regular performances of Javanese arts such as gamelan music, shadow puppet (wayang) shows, and traditional dances. The Water Castle (Taman Sari) is within the Kraton area and was built in the mid-18th century. It has four distinct areas: a large artificial lake with islands and pavilions located in the west, a bathing complex in the center, a complex of pavilions and pools in the south, and a smaller lake in the east. Today only the central bathing complex is well preserved. Within an hour driving from Yogyakarta, Borobudur and Prambanan are magnificent historical Javanese temple complexes 100 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 dating back to the 8th to 9th and the 9th to 10th century respectively. They are both UNESCO World Heritage Sites and they are managed by PT. TWC. • The Borobudur temple complex consists of three monuments, the main Borobudur temple and two smaller temples nearby (Mendut and Pawon temples). The main temple of Borobudur is the largest Buddhist temple in the world. Apart from its magnificent scale, Borobudur is famous for its beautiful stone reliefs and statues. • The Prambanan temple complex is the largest Hindu temple of ancient Java. Eight main and eight minor temples form the main Pramabanan temple complex, but the remains of more than 200 mostly ruined smaller temples surround the main temple complex. Nearby are the Plaosan temples, consisting of two restored main temples and more than 100 small mostly ruined shrines. • Another site with tourism growth potential is the Ratu Boko site, found adjacent to the Prambanan complex. It is a partly ruined Hindu palace complex that covers 16 hectares. The history of Ratu Boko is unclear, and much of what is understood about the site comes from inscriptions and even folklore. A mix of Buddhist and Hindu structures are found on the complex. The oldest inscription found on the site is believed to date back to 792 AD. The challenge for the Master Planning exercise is to plan and guide tourism development very carefully to ensure that historical, cultural and religious assets will be preserved and can be enjoyed as part of a living heritage. Already, some adverse impact of overcrowding by tourist can be seen at Borobudur that suffers from increased visitor dissatisfaction and dampened visitor growth. Thus, one element of the Integrated Tourism Master Plan will be a Visitor Management Plan for Borobudur (refer to Annex 4). This will help to pacify growing discontent and stagnation, especially amongst foreign visitors, and to maintain the values for which the Borobudur Temple Compound was inscribed on the World Heritage List. The implications of pursuing a high-growth tourism scenario for planning and investment needs are presented in Figure 1. Regional connectivity plans ensure sufficient connectivity between Borobudur, Yogyakarta and Prambanan, and the current and new airport. The Consultant will prepare an Integrated Tourism Master Plan consisting of: (a) An overall 25-year development plan for the destination area consisting of Borobudur Cluster covering Kecamatan Tempuran, Kecamatan Mertoyudan, Kecamatan Muntilan, Kecamatan Borobudur and Kecamatan Mungkid36; Prambanan-Boko Cluster covering Kecamatan Prambanan in Kabupaten Sleman and Kecamatan Prambanan in Kabupaten Klaten and Yogyakarta Cluster covering Kota Yogyakarta. (b) A detailed development plans (5 years) for priority key tourism areas: i. The Borobudur Cluster covering two Kecamatan: Borobudur and Mungkid. ii. The Prambanan-Boko Cluster covering Kecamatan Prambanan in Kabupaten Sleman and Kecamatan Prambanan in Kabupaten Klaten. iii. The Yogyakarta Cluster including the Kraton, Taman Sari and Malioboro Street in the following Kecamatan: Kraton, Gedongtengen, Danurejan, Ngampilan, Kotagede and Gondomanan. (c) Preparation of Borobudur Visitor Management Plan As part of Task F of the Services, the Consultant will adjust or confirm the priority key tourism areas. 36Presidential Regulation 58/2014 includes seven Kecamatan within the boundary of Borobudur’s Spatial Master plan: Tempuran, Mertoyudan, Muntilan, Kalibawang, Samigaluh, Borobudur, and Mungkid. The ITMP has excluded Kecamatan Kalibawang and Samigaluh considering that the area included in the Spatial Plan is minimal and no major tourism opportunities have been identified in these Kecamatan. 101 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Figure 1: Borobudur-Yogyakarta-Prambanan Destination Definition Detailed implication for Integrated Tourism Master Plan Consultants’ Services: Integrated Tourism Master Plans consisting of: (d) An overall 25-year development plan for the destination area consisting of Borobudur Cluster covering Kecamatan Tempuran, Kecamatan Mertoyudan, Kecamatan Muntilan, Kecamatan Borobudur and Kecamatan Mungkid; Prambanan-Boko Cluster covering Kecamatan Prambanan in Kabupaten Sleman and Kecamatan Prambanan in Kabupaten Klaten and Yogyakarta Cluster covering Kota Yogyakarta. (e) A detailed development plans (5 years) for priority key tourism areas: i. The Borobudur Cluster covering two Kecamatan: Borobudur and Mungkid. ii. The Prambanan-Boko Cluster covering Kecamatan Prambanan in Kabupaten Sleman and Kecamatan Prambanan in Kabupaten Klaten. iii. The Yogyakarta Cluster including the Kraton, Taman Sari and Malioboro Street covering the following kecamatan: Kraton, Gedongtengen, Danurejan, Ngampilan, Kotagede and Gondomanan. (f) Preparation of Borobudur Visitor Management Plan (Annex 4) 102 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Annex 2: Indicative Outline Table of Contents PART I: GENERAL APPROACH 1. OBJECTIVES OF THE INTEGRATED TOURISM MASTER PLAN 2. STRATEGIC VISION Tourism potential Tourism carrying capacity and sustainable tourism Local participation, job creation and poverty alleviation Enabling business environment Institutional arrangements PART II: MARKET ANALYSIS FOR AREA X/Y/Z (based on the Market Analysis and Demand Assessment study results) 1. TOURIST MARKET SUPPLY AND DEMAND ASSESSMENT Supply assessment Demand assessment Investor analysis 2. MARKET STRATEGY Future market demand analysis Marketing and branding strategy PART III: DEVELOPMENT STRATEGY FOR AREA X/Y/Z 1. ANALYSIS OF EXISTING SITUATION Boundary definition of the Integrated Tourism Development Master Plan Area X/Y/Z Assessment of existing planning framework and review of current spatial plans Review of the existing local institutional framework Assessment of socio-economic situation and development trends (past 10 years) Review of the overall economic activity in the area Analysis of tourism related economic activity in area X/Y/Z (based on the Market Analysis and Demand Assessment study results), including: • Number of tourist, local and foreign, length of stay, expenditure pattern, etc. • Overnight accommodation by type, capacity, and location • Eateries by type, capacity, and location • Cultural and natural tourist sites by type, location, and number of visitors 103 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Manmade tourist attractions by type, location, and number of visitors (theme park, tourist market, shopping center, etc.) • Etc. Employment conditions in the local tourism industry (based on the Market Analysis and Demand Assessment study results), i.e.: • Gaps in demand and supply of tourism related employment • Gaps (in quantity and quality) in skills requirements • Position and potential of local SMEs Detailed description of the condition of natural and cultural assets (based on the Market Analysis and Demand Assessment study results and other previous studies), including: • Identification of natural and cultural assets within the Tourism Destination Area • Assessment of the quality and uniqueness of natural and cultural assets • Review of the current condition of natural and cultural assets Environmental health conditions (water and air quality, cleanliness, malaria occurrence and other health hazards, etc.) Security concerns Current land use (map) Map showing the location and size of existing tourism areas: • areas where tourists stay overnight • areas where tourists recreate: beach area, shopping center, (tourist-)markets, restaurants, bars, etc. • areas near tourist attractions (cultural, natural, manmade) Inventory of current infrastructure and service provision, with a focus on the existing and new key tourism areas (based on the Market Analysis and Demand Assessment study results), i.e.: • External access: airports and airlift capacity, ports, national and provincial road network, railways, external (long distance) public transport system. • Internal access: internal road network, internal and short distance public transport facilities, non-motorized transport facilities, pedestrian facilities, road safety, etc. • Drainage and flood protection • Water supply • Sanitation and sewerage • Solid waste management • Electricity supply • Street lighting • Cleanliness and maintenance • Traffic management and parking • Pedestrian facilities 104 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Public amenities • Broadband internet services Detailed identification of gaps in infrastructure provision and service delivery Ongoing and planned public and private sector initiatives: • Public sector investment: what and when? • Private sector initiatives: what and when? Impact of planned investments on resolving identified deficiencies and service gaps 2. DEVELOPMENT SCENARIOS Growth projections for a period of 25 years and related medium-term growth projections for 5 years (based on the review of existing statistics, plans and documents): • Economic growth projection • Industrial growth projection • Visitor growth projection • Employment growth projection • Population growth projection, including temporary residents (tourists) and in- migration of job seekers Planning standards for tourism infrastructure and services (taking into account that visitors have a relatively high expectation of infrastructure and service standards). Identification of additional land needs for future residential, industrial, commercial, and visitor requirements, including land requirements for housing of tourism employees and their dependents Identification of community awareness and capacity building needs for inclusive tourism development Identification of needs for skills development for tourism market supply (education, SME development) Presentation of at least three different spatial development scenarios to accommodate the projected growth Assessment of environmental and social impacts of each development scenario 3. EVALUATION OF DEVELOPMENT SCENARIOS Identification of stakeholders and stakeholder representatives, at least from: Government institutions, private sector representatives, local residents and business community, local NGOs Discussion of the findings, the proposed planning standards and the scenarios with all stakeholders Selection of one scenario for further elaboration Identification of stakeholders that will actively contribute the detailing of the preferred development scenario 105 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 4. THE PREFERRED DEVELOPMENT SCENARIO Detail the preferred development scenario in close collaboration with identified stakeholders: • Present a land use map (2022 and 2042) including the detailed location, shape and size of existing and new key tourism areas. • Identify and discuss land ownership issues related to the preferred development scenario • Identify and mitigate environmental and social impacts related to the preferred development scenario • Identify and discuss cultural and natural heritage preservation issues related to the preferred development scenario • Evaluate phasing options and select priority locations for development with related detailed size and shape consistent with projected demand for all land uses and with special emphasis on tourism development in blocks of five years (2018-2022 / 2023-2027 / 2028-2032 / 2033-2037/2038-2042) • Identify additional needs for infrastructure and services on top of existing deficiencies based on the preferred development scenario and infrastructure standards with planning horizon of 5 years and 25 years respectively • Present an integrated phasing plan for timing of infrastructure and service provision in a gradual and cautious way to minimize risks and to guide development • Identify additional needs for SME and skills development • Identify roles and responsibilities of all stakeholders in implementation of the preferred scenario • Assess private sector interest and commitment to the realization of the development scenario • Assess community interest and commitment to the realization of the development scenario • Identify the need for downstream revision of other formal (spatial) plans and regulations (for indicative list see Annex 3) 5. DEVELOPMENT PLANS FOR PRIORITY KEY TOURISM AREAS Present detailed development plans with 5 years and 25 years planning horizon for all the priority current key tourism areas within the Tourism Destination Area (existing clusters of hotel and tourist facilities and attractions) and for new key tourism areas that have been prioritized for tourism development in the first 5 years (2018-2022) of the Program, including maps, planning standards, building regulations and conceptual designs with cost estimates. 6. INTEGRATED INFRASTRUCTURE AND SERVICES DEVELOPMENT PLAN Medium and long-term investment plan Present consolidated results of the overall development scenario and the detailed development plans and present an integrated and phased infrastructure and services development plan and related cost estimates for all sectors at prefeasibility level for 5 and 25 years respectively, together with conceptual designs. The investment plan must support and guide tourism development and will include: 106 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Area redevelopment • External access: airports and airlift capacity, ports, toll roads, national and provincial road network, railways, external (long distance) public transport • Internal access: internal road network, internal and short distance public transport facilities including water transport, non-motorized transport facilities, traffic management, pedestrian facilities, road safety, parking, etc. • Drainage and flood protection • Water supply • Wastewater management and sanitation • Solid waste management and cleanliness • Electricity supply • Street lighting • Public amenities • Broadband internet services • Specialized tourist related infrastructure such as visitor centers, jetties, boardwalks, signage, etc. Short-term investment plan Present urgent first year (2018) investment plan for improved connectivity and critical first year basic infrastructure investment. 7. CAPACITY BUILDING Present a capacity building program in close collaboration with identified stakeholders, including institutional capacity building at all levels of government, safeguard monitoring and downstream spatial plan revisions, community capacity building, and SME and skills development. 8. INTEGRATED TOURISM MASTER PLAN Present an integrated tourism master plan for all sectors at prefeasibility level, including conceptual designs for all infrastructure and services for 5 resp. 25 years, consisting of: • a land-use plan • a phasing plan showing priority locations for development in blocks of five years (2018-2022 / 2023-2027 / 2028-2032 / 2033-2037/2038-2042) • detailed development plans for priority key tourism areas • a phased tourism facilities development plan for 5 resp. 25 years • a phased integrated infrastructure and services development plan for 5 resp. 25 years • a private sector, SME and skills development plan • a local community capacity building plan for inclusive development • An institutional development plan for management of tourism development • If sufficient information on the land acquisition and/or resettlement is available for a particular land/infrastructure/facilities development as recommended by the ITMP, and if it has been decided that the ITMP recommendation will be implemented, then the Consultant will also prepare a land acquisition and 107 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 resettlement action plan (LARAP) in accordance with the LARPF as specified in the ESMF. • If sufficient information on the presence of and potential impacts on IPs is available for a particular land/infrastructure/facilities development as recommended by the ITMP, and if it has been decided that the ITMP recommendation will be implemented, then the Consultant will also prepare an Indigenous Peoples Plan (IPP) in accordance with the Indigenous Peoples Planning Framework (IPPF) as specified in the ESMF • a natural assets preservation and environmental management plan • a cultural heritage preservation management plan • implementation arrangements • detailed 5 years cost estimates and investment plan • a financing plan including distinction of public and private sector contributions 9. ECONOMIC EVALUATION 10. ENVIRONMENTAL IMPACT EVALUATION AND MITIGATION PLAN 11. SOCIAL IMPACT EVALUATION AND MITIGATION PLAN 108 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Annex 3: Responsibility for review of plans after completion of the Integrated Tourism Master Plan Once the Integrated Tourism Master Plan has been prepared, a number of spatial and sectoral plans have to be reviewed and improved or prepared as well, including: 1. Review of spatial plans: a. RTRW Provinsi b. RTRW (Rencana Tata Ruang Wilayah) Kawasan Strategis Pariwisata (across kota/kabupaten) c. RTRW (Rencana Tata Ruang Wilayah) Kota/Kabupaten d. RDTR (Rencana Detail Tata Ruang) Kawasan Strategis Pariwisata 2. Review of sectoral Master Plans: a. Roads b. Transport c. Drainage and flood control d. Water supply e. Wastewater management f. Solid waste management g. Power supply h. Plans of National Parks (if applicable) A large number of government institutions will be involved in preparing/reviewing these plans. Most of the work will be done in close collaboration and consultation with relevant stakeholders. This preliminary note is meant to identify which government body at which level of government is formally responsible for preparation and/or review of these plans. It is an initial attempt to identify down-stream planning needs that the Consultant will build and improve on. Ad 1. Spatial plans Responsible for the preparation/review of the RTRW and the RDTR is the Bappeda of the Kota or Kabupaten of the area covered. If the planning area covers more than one local government, which is often the case for the RTRW for strategic areas, the Provincial Bappeda is responsible. Ad 2. Sectoral master plans. Roads There are number of institutions in each level of governments responsible in road sector. Most of the responsibilities fall to Ministry of Public Works and Housing (MPWH). Detail of the responsibilities are as the following table. Institutions Responsibilities DG Highway - Ministry • Develop national road master plan of Public Works and • Develop and maintain national road network, including some Housing toll roads • Reconstruct and maintain provincial and district roads that have been classified as strategic roads • Regulate road sector Toll Roads Authority – • Regulate toll roads Ministry of Public Works • select toll road operators and Housing 109 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Institutions Responsibilities Provincial Government • Develop provincial road master plan • Develop and maintain provincial road network • Develop local roads Municipal/City • Develop municipal/city and local roads master plan Government • Develop and maintain municipal/city road network • Develop and maintain local roads Village Government • Village roads Transport Ministry of Transport (MOTr) responsible for development of transport infrastructures and service at national network (except road), and provincial and municipal/city governments responsible for provincial and municipals/city network. Detail of the responsibilities are as the following table. Institutions Responsibilities DG Land Transport - • Develop road transport service master plan MOTr • Develop ferry and inland waterway master plan • Regulate road transport sector • Enact inter-province road based public transport route network • Issue inter-province road based public transport service license to operators • Develop inter-province road based public transport terminal • Approve technical design and operation of road based public transport terminal • Develop and maintain ferry and inland waterway ports • Develop ferry route network • Issue ferry service license to operators DG Air Transport - • Develop airport master plan MOTr • Develop air transport service master plan • Regulate air transport sector • Enact regular air transport route network • Issue regular air transport service license to operators • Develop airport • Approve technical design and operation of airport DG Sea Transport - • Develop port master plan MOTr • Develop shipping line master plan • Regulate sea transport sector • Enact shipping route network • Issue regular shipping service license to operators • Develop port • Approve technical design and operation of port DG Railway - MOTr • Develop railway master plan • Regulate railway sector • Develop and maintain inter-province railway network 110 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Institutions Responsibilities • Issue inter-province railway public transport service license to operators • Approve technical design and operation of railways line Provincial Government • Similar to MOTr, but for provincial network. Provincial governments must ask for approval from MOTr on technical design and operation. Municipal/city • Similar to MOTr, but for municipal/city network. Government Municipal/city governments must ask for approval from MOTr on technical design and operation. Drainage and flood control Ministry of Public Works and Housing (MPWH) responsible for development of drainage networks and flood control and provincial and municipal/city governments responsible for provincial and municipals/city networks. Detail of the responsibilities are as the following table. Institutions Responsibilities MPWH - DG Water • Develop water resource management and water conservation Resources master plan • Regulate water resource management and water conservation • Implement and facilitate regulation of water resource management • Develop drainage primary network master plan • Develop standardization for water resource management • Develop and supervise technical guidance for water resource management • Evaluate water resource management implementation MPWH - DG Human • Develop regulation for drainage system at settlement location Settlement • Implement and facilitate drainage system regulation • Develop drainage system at settlement location • Regulate standardization of drainage system at settlements • Develop national settlements plan to support tourism areas • Develop and supervise technical guidance for drainage development at settlements • Facilitate of asset handover development and system development for drainage at settlements to Local Government Public Works Agency at • Regulate operational of water resource management at Provincial Level provincial level and inter-city/ kabupaten • Develop RPI2JM for drainage services infrastructure • Supervise operational and technical of water resource and drainage • Provide license of water use and water resource • Evaluate and control water resource management • Implement decentralization of authority for water resource sector at provincial level 111 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Institutions Responsibilities • Develop regional drainage system • Technical supervision for construction • Conduct physical construction of drainage and water system Public Works Agency at • Similar to Public Works Agency at provincial level, but for Kota/Kabupaten level municipal/city network • Develop RPI2JM for drainage services infrastructure • Coordinate with other city government for inter-connection drainage system and water resource management Water supply Water supply is normally organized at the Kota or Kabupaten level. Responsible for sectoral master plan preparation and implementation is the local Kota/Kabupaten water supply company PDAM. Institutions Responsibilities MPWH - DG Human • Regulate drinking water system management at urban, rural Settlement and specific area • Develop national water supply plan to support tourism areas • Implement and facilitate regulation of drinking water system • Regulate standardization for drinking water system • Institutional facilitation of drinking water sector MPWH – BPPSPAM • Regulate standardization for water supply especially for drinking water system • Supervise water supply system to provincial and local government Provincial – Public • Develop drinking water master plan for provincial level Works Agency (RISPAM) • Develop RPI2JM for water supply • Develop water supply services at regional level • Technical supervision for construction • Conduct physical construction of water supply City Government – • Develop regulation and strategy of drinking water and waste PDAM at city level water management • Develop drinking water master plan for city level (RISPAM), including maintenance and control • Develop RPI2JM for water supply • Develop Rencana Aksi Daerah Penyediaan Air Minum dan Penyehatan Lingkungan (RAD AMPL) • Provide HH water connections, construction and O&M of city drinking water networks Waste water management and solid waste management 112 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Institutions Responsibilities DG Human Settlement • Regulate waste water and solid waste system • Develop national waste water and solid waste management plan to support tourism areas • Implement waste water and solid waste system regulation including facilitate of land provision • Supervise technical guidance for waste water and solid waste management system • Develop standardization for waste water and solid waste management Public Works Agency at • Develop solid waste and waste water management system at Provincial Level regional level • Technical supervision for construction • Develop physical construction of waste water and solid waste system City Government • Develop sanitation master plan (Buku Putih Sanitasi/BPS, Memorandum Program Sanitasi (MPS) and Strategi Sanitasi Total Berbasis Masyarakat (STBM) • Develop technical regulation for waste water and solid waste management system • Provide waste water and solid waste management services Every local government should prepare a Strategi Sanitasi Kota/Kabupaten (SSK) covering both Waste water management and solid waste management. Responsible for preparation and implementation is the local Dinas PU. Power supply Responsible for the Power Supply sectoral master plan preparation and implementation is the national Power Supply Company PLN, which is also the provider of electricity. Institutions Responsibilities Ministry of Energy and • Regulate electricity sector Mineral Resources – DG • Implement and facilitate regulation of electricity sector Electricity • Develop electricity master plan • Regulate standardization of electricity sector • Supervise technical guidance of electricity sector • Evaluate water resource management implementation Energy and Mineral • Develop technical regulation for energy sector (including Resource Agency at electricity) and mineral resource Provincial Level • Implement and facilitate regulation of electricity sector • Coordinate and supervise to technical implementation unit at regional and city/ kabupaten level Power Supply Company • Develop master plan of electricity supply at regional level at regional level • Provide electricity supply system Potential for improved efficiency 113 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Note that the responsibility for many sectoral master plans is delegated to local government (Kabupaten/Kota) as a result of the drive to decentralization. This may however result in less efficient provision of infrastructure. For example, the combined use of a raw water source or a solid waste disposal site by more than one local government might be much more efficient than each local government having its own facility. Therefore, the Integrated Tourism Master Plan should identify opportunities for combined use of resources and facilities between localities. In such cases the Province could take the lead in preparing sectoral master plans in close cooperation with the local governments involved. A good example of such cooperation already exists in Central Java Province, where Kota Yogyakarta and Kabupatens Sleman, Bantul, and Wonogiri are working closely together under the guidance of the Central Java Province to make integrated master plans for solid waste management, drainage and sanitation. The same could be done for roads and road transport where the Province could become leading in preparing a sectoral master plan covering all layers of government. 114 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 [Add this Annex to BOROBUDUR-YOGYAKARTA-PRAMBANAN TOR only] Annex 4: Borobudur Visitor Management Plan Borobudur visitor attraction The Borobudur temple complex, a UNESCO World Heritage Site, is located approximately 40 km to the northwest of Yogyakarta’s city center. It consists of three monuments, the main Borobudur temple and two smaller nearly temples (Mendut and Pawon temples). The main temple of Borobudur is the largest Buddhist temple in the world. Apart from its magnificent scale and setting, Borobudur is famous for its beautiful stone reliefs and statues. In 2015, visitor numbers reached almost 3.6 million, which makes Borobudur the most visited paid-entry cultural site in Indonesia. The temple has been open to visitors for several decades. In 1974, as restoration works started, it recorded only 260,000 visitors, of whom 36,000 were foreigners. Since then, visitor numbers have experienced significant growth with an annual average rate of 8.8%. During the last 5 years, the numbers of visitors has increased by 1.1 million, which represents an annual average growth by 7.8%. Figure: Number of Visits to Borobudur Temple 1975 – 2015 (thousands of visits) 4000 3,559 3500 3,376 3,428 3,024 3000 2,440 2500 2,118 2000 1500 1,372 1000 717 500 260 0 1975 1990 2000 2010 2011 2012 2013 2014 2015 Source: TWC Admission prices for Indonesian residents are IDR 30,000 (~USD 2.3) for adults and IDR 15,000 (~USD 1.15) for students. The admission price for foreigners is USD 20 for adults and USD 10 for students. Borobudur temple is mostly visited by domestic visitors: • Students and schoolchildren (1.2 million, 33%) • Domestic adult visitors (2.1 million, 60%). • Foreign visitors (256,000, 7%) The top 5 nationalities for foreign visitors (2014 figures) are the Netherlands, Japan, Malaysia, France and Germany. Malaysia, Singapore, China and Australia are under-represented vis-à- vis their total visitor numbers to Indonesia. Peak visitor periods occur during European summer holidays, Lebaran and Vesak day (the latter sees 40,000 to 60,000 worshippers, mostly from Indonesia). Foreign arrivals to Borobudur increased steadily from 2011 to 2014 before dropping slightly in 2015. Domestic arrivals show strong increase over the longer term although in recent years’ growth appears to 115 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 have slowed. As Borobudur is a well-known heritage destination in Indonesia, domestic tourists come from cities all across Indonesia (with a larger percentage from Java). There has been some fluctuation in visitor numbers over the years reflecting natural disasters such as the eruption of Mount Merapi in late 2010 which resulted in the temporary closure of regional airports and causing damage to Borobudur because of volcanic ash. Figure: Growth in arrivals to Borobudur, 2010-2015 Growth rate of domestic Growth rate Domestic Total Growth rate Foreign arrivals Year of foreign of total arrivals arrivals arrivals arrivals arrivals 2010 156,247 - 2,283,532 - 2,439,779 - 2011 168,028 8% 1,949,817 -15% 2,117,845 -13% 2012 193,982 15% 2,830,230 45% 3,024,212 43% 2013 227,337 17% 3,148,368 11% 3,375,705 12% 2014 268,664 18% 3,159,744 0% 3,428,408 2% 2015 256,362 -5% 3,302,328 5% 3,558,690 4% Source: Annual reports of PT. Taman Wisata Candi Borobudur, Prambanan and Ratu Boko Borobudur heritage area management zoning and regulation The Indonesian government established five management zones for Borobudur with the support of UNESCO and Japan International Cooperation Agency (JICA). The overall management area covers over 15,000 square meters. Zone I covers the area with a radius of 100 to 300 meters from the main temple, and consists of the three temples. Within this area the Ministry of Education and Culture is obligated to protect and maintain the physical state of the temples. Zone II, with a radius of up to 2.5 kilometers, is the area where tourism, research, and conservation activities are carried out. This area is managed by a state-owned institute PT. Taman Wisata Candi Borobudur, Prambanan, and Ratu Boko (PT.TWC). Zones III-V cover the area beyond 2.5 kilometers from the temple, where any planning, usage or development is monitored and managed by the local government of Kabupaten Magelang. Institutional framework and key stakeholders Several stakeholders participate in the preservation, management and development of Borobudur. UNESCO – coordinated and funded the restoration of Borobudur (it provided a total amount of USD 7 million between 1972 and 1983); offers financial and technical support in case of damage; and supports sustainable tourism development both in motivating and supporting the local community in the Borobudur area, and in supporting the preservation of the monument. The Coordinating Ministry of Maritime Affairs and the Ministry of Tourism, in July 2017, launched the operation of the Borobudur Tourism Authority Board (BOP). The establishment of Borobudur BOP is based on the Presidential Regulation No. 46 of 2017 that was signed by President Joko Widodo on April 11. It is expected that the BOP will coordinate Borobudur’s tourism planning and the development of the temple into a national and international cultural destination. Its establishment may affect the roles of the three parties listed below. 116 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 The Ministry of Education and Culture, through the Borobudur Conservation Office, is charged with conservation and preservation management of the Borobudur Temple (Zone I). It works with the Gadjah Mada University of Yogyakarta and various local counterparts in implementing these programs. PT. Taman Wisata Candi Borobudur, Prambanan and Ratu Boko – a state-owned enterprise which manages tourist activities in Zone II; markets and promotes Borobudur in both local and international markets; and ensures the local community is benefitting from the tourism development of Borobudur. Kabupaten Magelang – manages and enforces spatial planning, land use and development control in the greater Borobudur area (Zone III – V). Surrounding villagers are of course key stakeholders as well, and should be engaged in the development, operations, and management of the destination. Kecamatan Borobudur consists of 20 villages all of which are part of the Government’s tourism initiatives that promote local assets in order to attract tourists. Legal framework, spatial and management plans In 1979, the JICA Borobudur Master plan was prepared as a comprehensive plan that included conservation strategies, environmental management, landscaping, infrastructure redevelopment, village improvement, a land use plan, entrances and additional facilities, budget, and administrative structure. This plan was not institutionalized by GOI (except for the partial zoning adopted by Presidential Decree 1/1992). Since then, a large number of spatial plans and management plans for Borobudur have been prepared, as summarized in the following table: Spatial Plans Management Plans 1979 – JICA Master plan International 1991- Listed as World Heritage Site by UNESCO Law 26/2007 – Spatial Presidential Decree 1/1992 – Management Management Plan of Borobudur and Prambanan. Government Regulation 26/2008 Several studies have been conducted for – National Spatial Plan the Borobudur Site: - Studies on Supporting Tourism Facilities Evaluation in Borobudur Temple Compound (2005); - Study on Surrounding Community National Perception of State of Conservation and Utilization of Borobudur Temple (2009); - Study on Physical Carrying Capacity of Borobudur Temple (2009); - Study on Visitor Behaviours in Zone I of Borobudur Temple (2010); - Study on Distribution Pattern and Visitor Flow (2010); - Study on Visitor Management of Borobudur Temple I (2012); - Standard Operational Procedures (SOPs) for the Conservation of 117 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Borobudur Temple and Surroundings (2013); - Study on the Perceptions of Visitors to the Visitation Comfort of Borobudur Temple (2013); - Study on Visitor Management of Borobudur Temple I (2014), and - Monitoring and Evaluation Report of Borobudur Temple, Mendut Temple and Pawon Temple (2016). Presidential Decree 58/2014 – Spatial Plan of Borobudur and Surrounding Areas Presidential Regulation 46/2017 – Establishment of the Borobudur Tourism Authority Board Provincial Regulation 6/2010 – RTRW Central Java 2009-2029 Provincial Kabupaten Decree 5/2011 – RTRW Kabupaten Magelang Kabupaten 2010 – 2030 The most recent plan is the Spatial Plan of Borobudur and Surrounding Areas (Presidential Decree No. 58 Year 2014). Article 42 par. 2 indicates that the Management Plan for the Borobudur Area should be implemented by the responsible Ministry in the field of culture. The Spatial Plan of Borobudur and Surrounding Areas is a local level plan and an operational and coordination tool with respect to the larger RTRW (Rencana Tata Ruang Wilayah, or Regional Spatial Plan), to ensure the preservation of Borobudur area as national and world heritage site. The plan indicates the heritage area and provides direction for this area on land use intensity, maximum percentage of building footprint, minimum area of green open space, maximum building height, building character, and minimum required infrastructure. Besides this, the plan identifies the broad zoning, states the development intentions, and contains regulations relating to the permitted activities. Constraints and concerns Notwithstanding its World Heritage Site status and significant marketing efforts and resources (e.g. TWC invested IDR 8.2 billion in 2014 on marketing and research of Borobudur, Prambanan and Ratu Boko), Borobudur is not receiving the same recognition as other attractions with similar international stature. Foreign visitors only account for 6 to 8% of total arrivals according to TWC entrance figures and they are mainly European. The various management parties of Borobudur (the Borobudur Conservation Office, TWC, and Kabupaten Magelang) lack a common vision and clear mechanism to coordinate the conservation and promotion of Borobudur. Each party has its own mandates and objectives and is responsible for different sections of the site. TWC is more business orientated, while the local government’s main interest is the contribution of tourism to regional and local income and employment. Thus, it is understandable that these organizations want more visitors to raise revenue and to contribute to the local economy. On the other hand, as a conservation agency, 118 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 the Borobudur Conservation Office is more concerned about the adverse impact that visitors may have on the temple. The Borobudur Temple, although an impressive and massive monument, is rather small at around 15,000 square meters compared to the much larger scale world wonders such as the Great Wall of China or Angkor Wat in Cambodia. Rising visitor numbers have caused an overloading problem, especially during peak season. This is both damaging to the temple and detrimental to the visitor experience. Overcrowding also threatens the image of the site among international markets, especially Europeans, as is evidenced by increasing recommendations on user-generated content websites to avoid the site as an “overcrowded tourist trap”. There are currently no systems in place to regulate or limit the number of visitors or to introduce mandatory guided tours to regulate tourist activities. Despite warning signs on all levels not to touch anything, the regular transmission of warnings over loudspeakers and the presence of guards, vandalism on reliefs and statues is a common occurrence. Some of the damage caused by vandalism by tourists is already irreversible. UNESCO does not provide figures regarding the daily carrying capacity or the number of visitors per year, however Borobudur Conservation Office hosted a physical carrying capacity assessment for Borobudur in 2009 and there has been no updated assessment since. While UNESCO considers the potential for “a small degree of damage caused by unsupervised visitors”, the potential damage caused by the risk of another volcanic eruption of Merapi or other volcano is greater than the issue of carrying capacity. Borobudur Temple is situated on a hill plateau surrounded by several volcanoes and hill formations, namely two pairs of twin volcanoes – Mount Sindoro/Sumbing in the northwest and Mount Merbabu/Merapi in the northeast – as well as the Menoreh hills in the south, and Mount Tidar on the north side. In 2010, volcanic ash from the eruption of Mount Merapi, with acidity levels of pH 3-4, covered the temple and stuck to the stone. The Borobudur Conservation Office staff took 40 days to conduct an emergency site clean-up; however, the temple’s entire post-eruption cleaning operation took one year. In addition to threats due to natural disasters such as volcanic eruptions and earthquakes, natural deterioration from climatic influences also endangers the precious stone reliefs and overall structures of Borobudur Temple. The Ministry of Education and Culture, through the Borobudur Conservation Office, plays a crucial role in ensuring the safeguarding of Borobudur Temple for both present and future generations by conducting continuous conservation activities. UNESCO Jakarta has also been providing conservation and preservation support to the Borobudur Conservation Office since 2011 through the implementation of a number of significant conservation techniques, research findings, and the facilitation of collaborative work with the German conservation experts within the framework of the UNESCO/German Funds-in Trust Project. The Borobudur Conservation Office has indicated (endorsed by both TWC and Kabupaten Magelang) that the optimal carrying capacity of the Temple itself is under 200 visitors simultaneously, which corresponds to a daily carrying capacity of around 3,000 visitors (1 hour per visitor and 15 hour operational days). Currently, this capacity is grossly exceeded, with an annual average daily number of visitors at 9,750 with a peak of 20,200 in the month of December. It seems therefore more than likely that measures of limitation or regulation of attendance are necessary. Another concern is poor management of hawkers in the Borobudur compound which causes much frustration for tourists, leaving a negative image of the destination. There are 2 components to the hawker problem. The first is the chaotic vendor stalls that visitors must walk through before exiting the Borobudur compound which is incompatible with visitors’ 119 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 expectations of a world class heritage site. Many vendors travel from around Java to set up stalls, not benefitting the local communities. The second involves local villagers who received lifetime free access to the Temple when they were displaced from their homes to make way for the establishment of the Compound. Today, they enter the Temple and sell unrelated items such as water and snacks close to the temple itself. Both problems are exacerbated during peak periods and disturb and frustrate tourists. While TWC has been trying to control the hawkers for over a decade, it has limited power to police and regulate the local community. Pipeline projects around Borobudur TWC is planning with the Magelang local government to relocate the current vendors to a new market (around 6 hectares) with car park outside Borobudur. The existing market place may be turned into a botanical garden. There is also a plan to add one more entrance and a ticket office. This is understood to be still in the planning stage. TWC is trying to develop a smart ticketing system to better manage the number and flow of tourists. It is understood that this is already budgeted by TWC. TWC has an ongoing campaign to develop the surrounding villages into tourism villages where guests can stay with themes based on the specialty of each. The program offers assistance in infrastructure and training and has been rolled out in the first few pioneer villages. The program is targeting all 20 villages within Kecamatan Borobudur. TWC is under the supervision of the Ministry of State Owned Enterprise and is currently working with 19 state-own-enterprises providing community empowerment support by building Balai Ekonomi Desa (Balkondes), a community centre that promotes local potentials and could be used by the local community to showcase their products and provide activities such as handicrafts workshops, ceramic-making, traditional performances, small-scale village tours as well as training for the management of local guesthouses and local cuisine factories. UNESCO has been implementing community empowerment programs in Borobudur and Prambanan since 2013. Under the support of AUSAID, in 2014, UNESCO and the Government of Indonesia launched a community run gallery (namely Galeri Komunitas) in Karanganyar village, within Kecamatan Borobudur. Galeri Komunitas has been supporting local crafts and promoting small businesses in the vicinity of Borobudur. UNESCO has been facilitating community empowerment support and business development assistance to the local communities working in the creative industries and with cultural products in 8 villages surrounding Borobudur and Prambanan. UNESCO is working closely with local counterparts and the private sector through their Corporate Social Responsibility Programs in facilitating sustainable community empowerment interventions and public awareness campaigns on heritage preservation in Borobudur and Prambanan. During this year, under the support of Citi Foundation, UNESCO Jakarta is currently implementing the project “Youth Economy Empowerment in Indonesia’s Heritage Sites, through Capacity Building and Sustainable Tourism” in 6 targeted Kabupaten (Sleman, Klaten, Magelang, Yogyakarta, Samosir and Toba Samosir). This project aims to assist the Indonesian government to improve the livelihoods of communities, particularly the youth (18-25 years old) by building capacities in the production of cultural products and by promoting sustainable tourism in and around UNESCO World Heritage sites and other key priority tourist destinations designated as priorities by the President of Indonesia Joko Widodo in early 2016. The project is targeting 450 youths and will aim to give them business development assistance through cultural mapping, capacity building, organization of a competition, and promotional activities. 120 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Under this project, UNESCO Jakarta has targeted 150 youths in Borobudur and Prambanan areas. In the area of conservation and under the support of the German Government, in 2017, UNESCO Jakarta has provided technical assistance in the area of temple conservation by implementing the project “Capacity‐Building for the Conservation of the Borobudur Temple Compounds Within a Disaster Risk Reduction Framework”. Within this project, UNESCO Jakarta supports the Borobudur Conservation Office team by conducting capacity‐building efforts through implementing disaster mitigation measurements within their conservation activities. Within the Zone 1, under the framework of UNESCO/Indonesia Fund-In-Trust project “Promoting Intercultural Dialogue through Capacity Building Training for Museum Development at UNESCO World Heritage Sites in Indonesia and Afghanistan” UNESCO Jakarta is working closely with the Borobudur Conservation Office and TWC in revamping of Museum Karmawibhangga in Borobudur, Magelang. By mid-September 2017, the newly revamped museum will be opened and it is expected to raise public awareness about the philosophy and stories about Borobudur temple reliefs and its valuable preserved objects. Requirements of the Borobudur Visitor Management Plan Borobudur cannot maintain, let alone increase its attractiveness without significant efforts aimed at improving and enriching the visitor experience. To avoid growing discontent and stagnation, especially amongst foreign visitors, a revision of the Borobudur experience is needed through the preparation of a Borobudur Temple Compound Visitor Management Plan. Until now, the natural positioning of Borobudur temple as a unique cultural and religious site in Indonesia and Asia has not been sufficient to make the area a significant international (or even domestic) leisure tourist destination. Redefinition of the visitor experience should benefit the preservation of the site while contributing to increased revenues. To increase both the number of visitors and average expenditure per visitor, the Borobudur Temple Compound must become and be promoted as a world class heritage site offering an exceptional, almost life- changing, visitor experience. Visiting the Borobudur Temple Compound should be a peaceful and spiritual experience as part of a cultural journey to the heartland of ancient living Javanese culture in the Borobudur-Yogyakarta-Prambanan triangle. It should be: • a temple compound at the center of a wider cultural landscape, highlighting historical and current features of Javanese culture; • a place where visitors will be immersed and “initiated” into Buddhist culture; and • represent one of the highlights of this “initiation”, by b eing exemplary in terms of quality of visitor experience (information, understanding of the site, scenography and services) and heritage conservation. The Borobudur Visitor Management Plan should seek to guarantee the preservation of the site for present and future generations, whilst improving visiting conditions and maximizing the local economic impact. The Plan should result in improved visitor experience at the Borobudur Compound, with better information, better visitor flow regulations and better control over hawkers. It should also build on and learn from previous experience where a wide array of planning efforts has delivered inadequate results. The Plan should address all constraints and concerns and provide clear directives for temple compound management, visitor flow and crowd management, regulated and restricted temple access, admission tariff setting, efficient use of internal compound attractions and improved visitor information. 121 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 The Borobudur Visitor Management Plan will focus on the immediate visitor area of the temple compound and the surrounding areas to the extent that they are affected by the pattern of visitor traffic such as visitor approaches, assembly and entrance areas. In addition, the Plan should also address spatial planning issues beyond the immediate visitor area such access and vehicle management as well as land use management of the surrounding areas. Based on review of existing plans and discussions with relevant government institutions, the Plan should provide directions to ensure that the integrity of the Borobudur Temple Complex (including Mendut and Pawon temples) will not be impaired by developments in the surrounding areas. These directions should then inform the spatial planning components of the wider Integrated Tourism Master Plan as well as specific local plans. They should include, but not be limited to, preparing planning guidelines and restrictive measures in terms of zoning, land use, pedestrian and vehicle movement, building heights and densities, floor-space ratios, green open spaces, open vistas, architectural styles, landscaping, noise and air pollution, etc. Spatial planning guidelines and measures should be ambitious but realistic, based on firm commitments from all stakeholders, especially relevant government institutions, to enforce regulations once agreed. Considering current institutional issues concerning the management of the temple compound and its surroundings, it is of the utmost importance to prepare the Borobudur Visitor Management Plan in close collaboration with all relevant government institutions and other stakeholders with a view to reach consensus and commitment on a common vision to ensure effective implementation and coordination of planned interventions. This may explicitly include proposals for revision of roles and responsibilities of relevant government institutions if this is deemed necessary for improved management of the Borobudur Temple Compound and its surrounding area. The results must be incorporated in the institutional development program and the capacity building program to be prepared as part of the overall scope of work for the Integrated Tourism Master Plan. The Borobudur Visitor Management Plan will have a 25-year planning horizon, consistent with the overall Integrated Tourism Master Plan for the entire tourism destination area, and will propose medium and long-term interventions and investments together with related cost estimates at prefeasibility level for 5 respectively 25 years. All proposed interventions and investments must be consolidated in the overall Integrated Tourism Master Plan. Scope of Work The scope of work is to prepare a Visitor Management Plan for the Borobudur Temple Compound. In order to conduct the work, the Consultant will follow the principles and criteria set out in the Operational Guidelines for the Implementation of the World Heritage Convention as well as the guidance of the UNESCO Practical Manual for World Heritage Site Managers. The Consultant will also review the existing Conservation Plan and Carrying Capacity studies that have been conducted for Borobudur and reflect their findings in the present assessment. This assignment should also build upon the findings of the Borobudur-Prambanan-Yogyakarta Market Analysis and Demand Assessments. The assessments present relevant information on the baseline supply and scale and type of demand that will drive the development of selected tourism destinations and assess the investment needs (soft and hard) and identify its gaps. These assessments provide the evidence base for the development of the integrated tourism destination and will help inform the Government-led destination master planning process. The Consultant will conduct the following three tasks. The Consultant will make its own assessment, identify additional activities and requirements and prepare its work plan in the Technical Proposal accordingly. Task 1. Review and reflect on Borobudur’s World Heritage Values 122 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 A. Review the site’s inscription dossier to help formulate future policy and management objectives. • Analyze how the site’s listing criteria should be reflected in its overall tourism policy and management objectives; • Develop an outline that can be used for later policy development under Task 2. B. List ways in which the site’s World Heritage values could be reflected and incorporated into interpretation programs. • Review the criteria for which the site was selected for inscription on the World Heritage List, as well as the site’s established policy and management objectives; • Select the species, monuments, art, etc., which are strongly identified with the site’s World Heritage values; • Describe how these attractions can be best represented in interpretation materials. C. List ways to monitor tourist attractions representing World Heritage values. • Review the section of the World Heritage Convention application form entitled “Format for Periodic Reporting” as well as the original nomination dossier; • Determine which elements of the site best represent World Heritage values and attract tourists, and state changes that may be appropriate in the request for periodic monitoring reporting data. Task. 2. Set policy goals, management objectives and prepare infrastructure plan A. Analyze existing policy and management objectives • Review laws and policies including those at the national level related to visitor management; • Review laws, regulations and policies related to Borobudur’s spatial planning framework, including those at the national, provincial and local level. The Consultant should build upon the findings of the Borobudur-Prambanan-Yogyakarta Market Analysis and Demand Assessment; • Review the current site management plan or management strategies and analyze previous visitor management objectives; • Review previous visitor management plans and policies, including an outline of who has done what and the strengths and weaknesses of these efforts; • Identify gaps, i.e., what policies and objectives should be strengthened, and highlight future visitor needs making preliminary suggestions on actions to meet these needs. B. Gather data relating to visitor numbers, behavior and perceptions • Determine whether visitors to a site are local residents, foreign tourists, or other groups such as school students, day visitors, etc.; • Identify the characteristics of different visitor groups, examine visitor behavior, patterns of flows, and determine how different groups use the site including access and egress. • Collect existing visitation statistics on use, trends, travel patterns, activities and expenditures at the site; • Develop and implement a visitor survey asking tourists about their behavior, activities, expenditures, satisfaction, perceptions, and preferences and have them compare the site with comparable attractions within their experience; identify visitor problems or areas of specific concern; and map these out; • Undertake a survey of tour operators and travel companies active in bringing visitors to the site to obtain information regarding visitor and operator needs and preferences and have them evaluate the site against neighboring and comparable attractions; 123 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • For this task, the Consultant should build upon the findings of the Borobudur- Prambanan-Yogyakarta Market Analysis and Demand Assessment. C. Meet with individual stakeholders, in interviews or by holding workshops, and develop a draft paper on the current issues affecting the conservation and management of Borobudur. The Consultant should consult: • community leaders to obtain their ideas for planning, tourism development in neighboring communities and the types of skills available in the community; • management and administration staff of the different entities with a legal mandate to manage the site (i.e., PT TWC, Borobudur Conservation Office- Ministry of Education and Culture, Kabupaten Magelang) in order to identify their concerns and issues; • local guides for their views of visitor management as well as social and environmental conditions at the site; • scientists and researchers to learn more about the site’s environmental and social conditions in relation to visitation impacts; • hotel owners and managers for their views on management problems, e.g., reservation systems and communication between the site and the hotels; and • tour operators who package and sell tours to the site to determine tourists’ and operators’ needs and preferences. D. Write tourism policies • Based on the outputs of activities A, B and C develop visitor management policies for Borobudur Temple Compound. These policies should reflect the site’s policy needs, management parameters, stakeholder concerns, the site’s comparative advantage, and existing legislation and international conventions; • Prepare a policy and vision statement document. E. Develop management objectives • If appropriate, and taking into account the vision statement, stakeholder concerns and management preferences for the site, use the outputs developed in the preceding activities to identify and map these according to different Recreation Opportunity Spectrum (ROS) classes37 or similar technique; • Draft the management objectives for either the whole site or each opportunity class, if ROS is being used; F. Prepare a plan for infrastructure development • Based on the identified management objectives prepare a plan for infrastructure development for the site; • Assess and analyze the existing legal and regulatory spatial planning framework for the Borobudur Temple Compound described in activity A; 37Recreation Opportunity Spectrum (ROS) – The ROS is a means of describing how tourism and recreation will be managed for different areas within a site. It works under the assumption that certain activities fit best in certain physical areas. The identification and mapping of opportunity classes set out the desired conditions for the different areas and provide guidelines for management objectives including tourism/recreation activities and infrastructure development. Each classification entails management standards and desired conditions that fall within a site’s policy goals. The information needed to identify and establish opportunity class areas should be drawn from background information on policy goals, existing legislation, and stakeholder concerns. 124 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Prepare a set of guidelines and recommendations for the preparation of the Borobudur- Prambanan-Yogyakarta Integrated Tourism Master Plan and for the review and preparation of additional spatial or sectoral plans related to this tourism destination. Task 3. Develop a monitoring system for Borobudur Temple Complex A. Identify the site’s tourism impacts and problems • Conduct desk research and stakeholder consultation to develop a prioritized list of existing impacts and threats at the site; • Examine the cause-and-effect relationship of the identified impacts; • Prepare an overview description of the impacts and preliminary list of actions needed to mitigate them. B. Identify indicators • Based on the output of the previous activity develop a preliminary list of tourism indicators with justifications for their selection, and estimate associated monitoring costs. C. Collect baseline data on the indicators selected • Develop a monitoring program and write a monitoring manual; • Determine method to collect data; • Determine how stakeholder partners could be involved in the monitoring process. D. Set standards for indicators • Building upon the data from activity C and previous carrying capacity studies, develop a preliminary set of indicator standards;38 • If ROS opportunity classes are being used, set standards reflecting the different experiences desired in different areas of the site; • Prepare a set of guidelines and recommendations for the selection of indicators that will be monitored by the UNWTOs Sustainable Tourism Observatories39 at the destination level in order to maximize efforts and coordinate data gathering and flow of information. 38 Measurement standards for indicators provide targets for measuring tourism impacts to keep them within acceptable limits. Once standards are set, a regular monitoring framework will be used to determine the degree to which existing conditions vary from desired conditions. 39 Sustainable Tourism Observatories (STOs) are being established by MOT at major tourism destinations under a sustainable tourism program of the UN World Tourism Organization (UNWTO). The establishment of STOs has been chosen for the following destinations: Sesaot, Lombok; Sleman, Yogyakarta, Pangandaran, West Java and Lake Toba in North Sumatra. STOs were formalized through an MOU signed between UNWTO and MOT in Jakarta in September 2016. 125 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 2 PROCESS FRAMEWORK A. BACKGROUND OP 4.12 Annex A, para 26. A process framework is prepared when Bank-supported projects may cause restrictions in access to natural resources in legally designated parks and protected areas. The purpose of the process framework is to establish a process by which members of potentially affected communities participate in design of physical investment components, determination of measures necessary to achieve resettlement policy objectives, and implementation and monitoring of relevant physical investment activities (see OP 4.12, paras. 7 and 31). Indonesian regulation also releases a Regulation of Ministry of Forestry No. T.39/Menhut-II/2013 concerning Local Community Empowerment through Forest Partnership. Specifically, the process framework describes participatory processes by which the following activities will be accomplished: (a) Physical investment components will be prepared and implemented. The document should briefly describe the physical investment and components or activities that may involve new or more stringent restrictions on natural resource use. It should also describe the process by which potentially displaced persons participate in physical investment design. (b) Criteria for eligibility of affected persons will be determined. The document should establish that potentially affected communities will be involved in identifying any adverse impacts, assessing of the significance of impacts, and establishing of the criteria for eligibility for any mitigating or compensating measures necessary. (c) Measures to assist affected persons in their efforts to improve their livelihoods or restore them, in real terms, to pre-displacement levels, while maintaining the sustainability of the park or protected area will be identified. The document should describe methods and procedures by which communities will identify and choose potential mitigating or compensating measures to be provided to those adversely affected, and procedures by which adversely affected community members will decide among the options available to them. (d) Potential conflicts or grievances within or between affected communities will be resolved. The document should describe the process for resolving disputes relating to resource use restrictions that may arise between or among affected communities, and grievances that may arise from members of communities who are dissatisfied with the eligibility criteria, community planning measures, or actual implementation. Additionally, the process framework should describe arrangements relating to the following. (e) Administrative and legal procedures. The document should review agreements reached regarding the process approach with relevant administrative jurisdictions and line ministries (including clear delineation for administrative and financial responsibilities under the physical investment). (f) Monitoring arrangements. The document should review arrangements for participatory monitoring of physical investment activities as they relate to (beneficial and adverse) impacts on persons within the physical investment impact area, and for monitoring the effectiveness of measures taken to improve (or at minimum restore) incomes and living standards. Implementation of land use development and/or physical investment may cause restrictions of traditional access to natural resources in legally designated parks and protected areas. For instance, road development unintentionally restricts access for forest-dependent communities to the benefits of the services provided by natural resources. Although construction activities may not always acquire land through eminent domain, the purchase of private land, the establishment of infrastructure in or nearby protected areas may prohibit local communities’ access to the area they depend on, and could adversely affect social and economic livelihoods of these communities. This Process Framework (PF) is instituted to promote community participation in the design of land use development and/or physical investment that can enforce conservation activities as well as identification of acceptable alternatives sustainable resource use due to the access restriction caused by the land use development and/or 126 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 physical investment. In the event that land use development and/or physical investment requires forest- dependent communities to stop or reduce their activities, these communities must be able to find alternative sources of livelihoods. In order for conservation initiatives to be effective while maintaining sources of livelihoods for the affected communities, land use development and/or physical investment may call for the provision of incentives to affected communities. Such incentives are not necessarily directly linked to forest rent (payment for results) but can also be monetary or non-monetary benefits to enable or motivate a particular behavior. This PF serves as a guideline for planning, managing, monitoring, and evaluating the impacts of access restrictions on livelihoods due to project implementation. The main objective of this framework is to ensure that livelihoods can be restored to, at least, “before -the-project” levels. Once the sites and communities affected have been identified, this PF requires that the agency/entity proposing a land use development and/or physical investment to be financed by the IPF prepare a Plan of Action (refer to paragraph K) or an equivalent instrument be developed in consultations with affected communities outlining among others specific measures to be undertaken, types of alternative livelihoods, facilitation support and in some instances monetary and/or non-monetary compensation, implementation arrangements, clear indicators of outputs and outcomes, and timelines. A. POLICY OBJECTIVES AND KEY DEFINITIONS It is often not possible and practical to presume that all livelihood impacts of proposed restrictions can be predefined. The nature of the restrictions caused by infrastructure development and the specific interventions needed to restore people’s livelihoods also cannot be necessarily known fully in advance. This PF is required with a view to ensure that land use development and/or physical investments fulfil the objectives of conservation and infrastructure development as well, while at the same time promote sustainable livelihoods of forest dependent communities by 1) promoting sustainable use and management of natural resources; 2) avoiding unnecessary restrictions of access to these resources and fostering partnership with local communities 40; 3) ensuring adequate participation and consultations of the affected population in the overall project areas; 4) ensuring that a restorative and mitigation plan of action, which describe specific measures to assist people adversely affected by the proposed land use development and/or physical investment causing restrictions, are put in place prior to the enforcement and implementation of land use development and/or physical investment. Key definitions used in the framework are as follows: a. Project Affected Persons (PAPs) refers to all of the people who, on account of the land use development and/or physical investment, would have their (i) standard of living adversely affected; or (ii) rights, titles, interest in any property rights (including premises, agricultural, grazing and hunting land) and/or any other fixed or movable assets acquired or possessed temporarily or permanently; (iii) access to productive assets adversely affected, temporarily or permanently; (iv) business, occupation, work or place of residence or habitat adversely affected; b. Access Restriction refers to a process whereby local communities residing in and/or near project sites lose access partially or wholly, temporarily or permanently to land and natural resources in legally designated parks or protected areas. Such restrictions can be the consequence of voluntary and involuntary actions. c. Rehabilitation is the process by which PAPs are provided sufficient opportunity to restore productivity, incomes and living standards. Compensation for assets is often not sufficient to achieve full rehabilitation. d. Compensation can be monetary and non-monetary prior project implementation or after achievement of certain emission reduction indicators (payment for results). Funds from public or donor sources can be used to provide incentives and assistance for sustainable land use and livelihoods. e. Land acquisition is the process whereby a person involuntarily loses ownership, use of or access to, land as a result of project/sub-project activities. Land acquisition can lead to a range of associated impacts including loss of residence, livelihoods, or other productive assets. B. KEY PRINCIPLES 40 Specific guideline for Forest Partnership could be referred to Ministerial Regulation no.P.39/Menhut-II/2013 on Local Community Empowerment through Forestry Partnership 127 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 In developing a Plan of Action to mitigate adverse impacts of access restrictions, the following principles need to be adhered to: a. Participation: Broad public participation by affected communities are sought. Affected communities shall be engaged in a method that is culturally appropriate and based on free, prior, and informed consultation particularly where Indigenous Peoples (Masyarakat Hukum Adat or Masyarakat Adat or Masyarakat Tradisional) are present. All affected communities will be openly in an effort to collaborate and be made aware of the option to refuse to participate in the preparation and implementation of the ITMPs (including DDPs) and sectoral plans. b. Access to information and disclosure: Information is made available in a language(s) acceptable to affected communities, adopting various media to ensure broad outreach. Communication of land use development and/or physical investment will begin early during the preparation phase, occur regularly throughout the project cycle in a consistent and transparent manner and allow for the timely disclosure of relevant information. c. Social inclusion: Engagement shall take into consideration critical issues of gender equity, illiteracy, disability, ethnicity, and other exclusion factors for socially excluded and other vulnerable groups to ensure that any dialogue is inclusive and mitigation measures are tailored to meet the needs of vulnerable persons. d. Transparency: Information about land use development and/or physical investment, including their positive and negative impacts, are communicated to affected communities in a transparent manner. Information about implementation of mitigation measures, including budgeting, GRM, and monitoring and evaluation, shall be accessible to affected communities. e. Free, Prior, and Informed Consultation: Consultations with affected communities shall be well-documented, adequately resourced, capture stakeholder views to inform decision about the project (i.e. two-way communication), and allow adequate time for community decision- making. f. Avoiding unnecessary restrictions: The design of land use development and/or physical investment shall strive to seek alternatives to achieve carbon emission reduction objectives while maintaining local communities’ access to conservation areas e.g. partnership schemes. C. COMMUNITY ENGAGEMENT Forest-dependent communities may have long-standing use of the forest resources. Households may depend on natural resources for the sustenance of their livelihoods such as income, employment, and food, as well as social and cultural practices. Affected communities may be adversely affected by construction activities both temporarily and permanently, and such impacts could be particularly severe in the events of loss of productive assets and livelihoods. For IPs, their culture and history are connected to their ancestral territories, often in forest areas. It is therefore critically important to engage forest- dependent communities at all levels under the land use development and/or physical investment since the success of carbon emission reduction partly hinges on behavioral change of these communities. Some of these aspects for community engagement need to be taken into consideration: a. Forest dependent communities are recognized as a diverse group even if they may belong to the same communities or organizations. The pattern of forest dependence, natural resource use, and hierarchy including gender roles may differ from place to place and time to time. Efforts should not overlook vulnerable groups in the affected communities; b. Forest-dependent communities, including IPs and local communities are regarded as equal partners and stakeholders in the management of conservation areas and natural resources in general. Their views must be considered and respected. c. Although community members may not be able to fully participate in the scientific design process (e.g. valuation of carbon, or zonation), their traditional knowledge will be incorporated in the overall design. d. It is critical not to raise community expectations beyond what the project is able to deliver. Efforts shall be made to ensure that communities are properly informed about key biodiversity interests to ensure the achievement of carbon reduction emission. e. Not all community stakeholders are aware of the intent, management, technical issues, planning processes or benefit sharing mechanisms and therefore will require some guidance to facilitate their participation. Awareness raising is therefore key to fostering engagement and participation of affected communities, and may take the form of community meetings, informational presentations, and dissemination of informational materials among others. D. IDENTIFICATION AND ELIGIBILITY OF DISPLACED PERSONS Two categories of eligibility are established in this framework, including: a. Eligible communities 128 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 As per the World Bank’s OP 4.12, the term “displaced persons” used in this framework is synonymous with “project affected persons” and is not limited to those subjected to physical displacement. Displaced communities may be classified in one of the following three groups: i. Those who have formal legal rights to land; ii. Those who do not have formal legal rights to land at the time the census begins but have a claim to such land, assets or properties that such claims are recognized under the national laws or become recognized through a process supported by the project; iii. Those who do not have recognizable legal rights to the land under the national laws, but recognized by other claimants (e.g. customary and traditional rights not recognized under the national laws). Depending on the level of property ownership and level of vulnerability or whether the impacts are direct or indirect, the forms and types of livelihood support may vary. This framework applies to all those persons who lose access to legally designated parks and protected areas resulting in adverse impacts on their livelihoods. It is important to highlight in this framework that a baseline assessment is required to establish eligibility criteria and identify eligible community members. The baseline is also important to demonstrate the types and extent of loss of access as a result of access restrictions. b. Ineligible communities Livelihood support and allowance is made for the flexibility to exclude from displacement assistance anyone who is involved in unsustainable and destructive activities after the establishment of protected and conservation areas and zoning schemes have been fully consulted and agreed. This is to be clearly communicated to community members during initial consultations. E. ESTABLISHING IMPACTS ON LOCAL COMMUNITIES While the land use development and/or physical investment is expected to affect the livelihoods of local community members through restrictions to resources, specific impacts will not be necessarily fully known until the implementation of such activities begin. In order to adequately determine those impacts, it will be necessary to collaborate and consult with community members, and their representative organizations to identify those who are being directly affected and determine the ways in which the effects are being experienced. F. LIVELIHOODS RESTORATION AND FACILITATION The overall aim of the restorative and mitigation measures is to compensate for and diversify the livelihoods of the affected communities in and surrounding conservation areas. The land use development and/or physical investment will support the development of community-based enterprises or other small-scale livelihood activities such as agriculture, fishery, agroforestry etc. that can help offset the opportunity costs of access restrictions. Such efforts can be done in partnership with other entities such as CSOs, NGOs, and the private sector. The process of developing alternative livelihood strategies will be participatory and will be underlined by the spirits of equity and community-driven decision making. The process to achieve this will be started with mobilizing affected community members to ensure that they have the space and opportunity to consider the options available to them. Mitigation measures and assistance support being taken to address livelihood restoration must be long- term in order for them to achieve a restorative effect. G. GRIEVANCE REDRESSAL MECHANISM (GRM) A GRM is instituted to identify procedures to effectively address grievances arising from the implementation of land use development and/or physical investment. Affected communities must have an avenue where they can formally lodge their complaints and grievances in a confidential manner and have them properly considered and duly addressed in due course. A GRM can help agency/entity management significantly enhance operational efficiency in a variety of ways such as fostering public awareness about the land use development and/or physical investment and its objectives, enhancing trust of the good intent of the project, deterring fraud and corruption, mitigating risks, providing project staff with practical suggestions that allow them to be more accountable, transparent and responsive to communities, assessing the effectiveness of internal organizational processes and improving stakeholder involvement in the land use development and/or physical investment. The GRM arrangement for this project is described in Section 10 of this ESMF. 129 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 H. MONITORING AND EVALUATION OF PROCESS FRAMEWORK The main purpose of the PF M&Es system is to monitor the extent and the significance of adverse impacts and the effectiveness of measures designed to assist affected communities to improve or restore livelihoods. The M&E is designed in a participatory manner involving affected communities and various methods and approaches can be developed in this regard (see Section on Monitoring and Evaluation in this ESMF). Those who benefit from livelihoods restoration and support will also be involved to monitor and evaluate the effectiveness of the alternative livelihood measures being undertaken by the land use development and/or physical investment project. I. DISCLOSURE Mitigation measures as well as their implementation arrangement and budgeting as outlined in the Plan of Action are prepared in consultation with affected communities. A draft must be disclosed, as soon as feasible but never less than two weeks prior to any meetings or consultations. The disclosure also includes the findings of social assessments and analyses that inform the Plan of Action. Disclosure is delivered in a culturally appropriate manner and in a language that can be understood by the majority community members. Extra efforts shall be made to outreach communities who reside in remote areas to ensure broad information dissemination. In some instances, verbal communication may be more efficient than written forms. The Plan of Action, together with the agreements reached with affected communities and minutes of public consultations, must also be available in the agency/entity’s websites and will be periodically updated. K. OUTLINE OF PLAN OF ACTION FOR ACCESS RESTRICTION The land use development and/or physical investment project background and how the plan is prepared, including consultations with local communities and other stakeholders, are part of the Plan of Action. This section needs to highlight which land use development and/or physical investment project components/sub-components that may result in access restrictions: a. The socio-economic profiles of local communities and their dependence on natural resources and social and cultural attachment to the legally designated parks and conservation areas; b. The nature and scope of restrictions, their timing, as well as administrative and legal procedures to protect affected communities’ interests; c. Protected area boundaries and zones as well as the length of legal enforcement for conservation (i.e. permanent vs. temporary); d. The anticipated social and economic impacts of the restrictions; e. The communities or persons eligible for assistance; f. Specific measures to assist these people, along with clear timetables of actions and financing sources; g. Implementation arrangements, roles and responsibilities of various stakeholders, including government and non-government entities, service provides (NGOs, CSOs) and other entities providing services or assistance to affected communities; h. Arrangement for monitoring and enforcement of restrictions and natural resources management agreements; i. Clear output and outcome indicators developed in consultation with affected communities L. BENEFIT SHARING A. Definition Integral to the Process Framework is benefit sharing with affected PAPs whose land and income streams become disrupted or decline due to infrastructure development financed by the subproject. Benefit sharing involves the intentional transfer of monetary and non-monetary incentives and assistance to enable affected parties to implement activities that could offset the impacts induced/triggered by land use development and/or physical investment. The benefits can range from participation in the labor-force, shares in the stock-market, social development initiatives, direct financial payments and technical assistance (for instance technology provision or skill-training in relevant areas). Arrangements for sharing these benefits can involve mechanisms for revenue sharing (i.e. shares) or alternatively mechanisms for transferring monetary and non-monetary assistance among parties in the agreement. Important conditions in benefit sharing require identifying the beneficiaries and necessary benefits. All parties in the agreement must agree on obligations or responsibilities that need to be met 130 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 in order to access the benefits. There is also a need to develop systems for recording and monitoring the distribution of benefits and milestones of related obligations. The key principle of benefit sharing goes beyond one-time compensation payment and short-term resettlement support for PAPs. Benefit sharing treats both displaced people and affected communities that host land use development and/or physical investment in their locality as legitimate partners in the subproject and first among their beneficiaries. Benefit sharing is generally regulated under the Law No.2 Year 2012 on Land Acquisition for Public Interest, where compensation can be in the form of shares in the stock market or other forms agreed between PAPs and subproject owners. Benefit sharing arrangements recognize the nature of the impacts induced by land use development and/or physical investment, which are to some extent irreversible and long-term. Depending on the types of benefit sharing, such arrangements could also be used to mobilize financing and activities to improve the management of ecosystem services permanently transformed by land use development and/or physical investment which may result in impoverishment and livelihood displacement for PAPs. Although benefit sharing is mostly applicable to commercial infrastructure subprojects to be viable (i.e. toll road, hydropower, electricity, etc.), its application could also be expanded to the non-commercial sector with differing length and amount of benefits depending on the nature and scale of impacts. Benefit sharing should be flexible and depending on the agreement, may continue over the economic life of land use development and/or physical investment assets. B. Requirements It is important to ensure that all stakeholders understand the mechanism, including the proportion/ratio of the benefits distributed, benefit-flows, as well as eligibility criteria. It is also important for beneficiaries to have sufficient understanding how benefits are calculated including the balance between the level of revenue sharing (as a percentage of revenue generated by subproject-specific activities) and the impacts of such sharing on profitability. Promoting such understanding across different levels of stakeholders is important to foster transparency and allay suspicion that may arise due to information gaps. The general approach for benefit sharing calls for: 1. An agreed formula and standard procedures to remit a share of the revenue generated by infrastructure subprojects into revenue sharing funds and internalize such costs into calculation of ROI (return on investment); 2. Establishment of the eligibility criteria, grant selection, and award procedures and administrative arrangements for the fund; 3. Appointment of a benefit sharing council/board/organization with appropriate local representation and capacity to communicate benefit sharing arrangement with beneficiaries, manage the Fund transparently and make other recommendations on non-monetary forms of benefit sharing e.g. social development, in-kind assistance, etc. 4. Use of the fund to offer a menu of local development options preferred by beneficiaries; grants are often managed on a competitive basis based on agreed criteria; 5. Mechanisms for transparency, accountability and monitoring to foster public confidence; C. Steps There are multiple approaches for benefit sharing, depending on socio-economic circumstances, level of governance, as well as land use development and/or physical investment types. The steps outlined in the following serve as an example and are not meant to be prescriptive and exhaustive: 1. Consultations with affected communities with regards to the land use development and/or physical investment activities including locations, timeline, the need for labor-force and requirements, as well as the scale of (perceived and real) impacts and their nature (permanent and/or temporary) and who bear those impacts the most. Such consultations must take place early during land use development and/or physical investment preparation once the locations have been identified and be conducted more than once to ensure outreach. In some situations, this process may call for the presence of mediators to foster neutrality and impartiality. 2. Once the affected communities have obtained sufficient understanding and come to agreement to the land use development and/or physical investment, selection of community representatives to be in the benefit sharing council can begin. Participation in this council is voluntary and selection needs to be aware of elite capture and therefore preparation is key to 131 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 ensure broad representation of community interests in the council. A rotation system also needs to be established for this council to ensure participation of other eligible members. 3. Together with the benefit sharing council, preparation of benefit sharing arrangement. This includes establishing eligibility criteria, priorities, period of benefit flows, fund management, types of eligible programs, technical assistance, etc. Every unclassified material must be furnished to the council in a user-friendly manner and in a timeframe that allows them to digest the information. Such information may include the proportion of revenue sharing as well as monetary and/or non-monetary transfer in ratio with projected profits. 4. Another round of consultations with affected communities to consult the draft agreement including all the provisions in benefit-sharing. Critical points to be agreed upon include eligible beneficiaries, types of benefits, length of benefit-sharing, ratio of the benefits to the overall profits by specific subproject activities. This process could be led by the council assisted by mediators if considered necessary. This agreement should also look into the timeline of the arrangement (e.g. whether benefits will be incremental and gradually increase along with profitability, and frequency) and arrangement for grievance redressal. 5. Pilot the delivery and monitoring mechanisms, as well as grievance measures, potentially starting from the directly affected communities before scaling up to other communities as envisioned in the agreement. 6. Stock-taking exercise with affected communities with regards to what works and does not and at the same time, improve the system as well as build the capacity of implementing organizations and benefit sharing council. 132 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 3 CONTENTS OF A LAND ACQUISITION AND RESETTLEMENT ACTION PLAN (LARAP) The LARAP covers the elements below, as relevant. When any element is not relevant to the circumstances of a particular physical investment, it should be noted in the LARAP. 1. Description of the physical investment. General description of the physical investment and identification of the investment area. 2. Potential impacts. Identification of (a) the physical investment component or activities that will require land acquisition or give rise to resettlement; (b) the zone of impact of such component or activities; (c) the alternatives considered to avoid or minimize resettlement; and (d) the mechanisms established to minimize resettlement, to the extent possible. 3. Objectives. The main objectives of the LARAP. 4. Census of Project Affected Persons (PAPs) and inventory of affected assets. The results of the census and the inventory of assets, including the following information: • list of PAPs, distinguishing between PAPs with land rights and occupants without such rights; • inventory of plots and structures affected and including the following information:  Total size of the plot affected, size of the area to be taken for the physical investment, and size of the residual land;  Status ownership of affected land/building and evidence of ownership;  Function of affected land/building;  Building condition (permanent, semi-permanent, temporary, etc.)  Other assets affected (trees, crops, wells, fences, etc.) • total number of PAPs and Project Affected Households (PAHs) • number of PAHs who must relocate, distinguishing between (1) those who will be able to rebuild their homes within the residual land of lots affected by the physical investment and (2) those who will be forced to move to another location; and • number of PAHs who will lose more than 20% of their productive assets. The information above should be summarized in a table. 5. Socioeconomic study. Findings of a socioeconomic study covering PAHs that lose more than 20% of their productive assets and/or are forced to move to another location. The socioeconomic study should include the following elements: • A description of production systems, labor, and household organization; • The patterns of social interaction in the affected communities, including social networks and social support systems, and how they will be affected by the physical investment; • Information on vulnerable groups or persons as provided for in OP 4.12, para. 8, for whom special provisions may have to be made; 133 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Land tenure and transfer systems, including an inventory of common property natural resources from which people derive their livelihoods and sustenance, non-title-based usufruct systems (including fishing, grazing, or use of forest areas) governed by locally recognized land allocation mechanisms, and any issues raised by different tenure systems; • Public infrastructure and social services that will be affected; • Social and cultural characteristics of displaced communities, including a description of formal and informal institutions (e.g., community organizations, ritual groups, nongovernmental organizations (NGOs)) that may be relevant to the consultation strategy and to designing and implementing the resettlement activities; • Baseline information on livelihoods (including, as relevant, production levels and income derived from both formal and informal economic activities) and standards of living (including health status) of the displaced population; and • Provisions to update information on the displaced people's livelihoods and standards of living at regular intervals so that the latest information is available at the time of their displacement. 6. Legal analysis. The results of an investigation of any legal steps necessary to ensure the effective implementation of land acquisition and resettlement activities under the physical investment, including, as appropriate, a process for recognizing claims to legal rights to land —including claims that derive from customary law and traditional usage. 7. Institutional Framework. The findings of an analysis of the institutional framework covering: • The identification of agencies responsible for resettlement activities and NGOs that may have a role in physical investment implementation; • An assessment of the institutional capacity of such agencies and NGOs; and • Any steps that are proposed to enhance the institutional capacity of agencies and NGOs responsible for resettlement implementation. 8. Eligibility. Identification of the PAPs who will be eligible for compensation, resettlement assistance and rehabilitation support and explanation of the criteria used to determine eligibility, including relevant cut-off dates. 9. Valuation of assets and calculation of compensation for losses . A description of the procedures that will be followed to determine the form and amount of compensation to be offered to PAPs. 10. Compensation, resettlement assistance and rehabilitation support. A description of (1) the compensation packages to be offered to PAPs who lose land and/or other assets, (2) resettlement assistance to be offered to physically displaced persons, and (3) rehabilitation support to persons who lose income sources or livelihoods as a result of land acquisition for the physical investment. The compensation packages, combined with other assistance and support offered to each category of PAPs should be sufficient to achieve the objectives of World Bank Operational Policy 4.12 on Involuntary Resettlement (see OP 4.12, para. 6). The relocation options and other assistance offered to the PAPs should be prepared in consultation with them and should be technically and economically feasible, as well as compatible with the cultural preferences of the PAPs. 11. Site selection, site preparation, and relocation. Alternative relocation sites considered and explanation of those selected, covering: • institutional and technical arrangements for identifying and preparing relocation sites, whether rural or urban, for which a combination of productive potential, locational advantages, and other factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources; • any measures necessary to prevent land speculation or influx of ineligible persons at the selected sites; 134 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • procedures for physical relocation under the physical investment, including timetables for site preparation and transfer; and • legal arrangements for regularizing tenure and transferring titles to resettlers. 12. Housing, infrastructure, and social services. Plans to provide (or to finance resettlers' provision of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services); plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities. 13. Environmental protection and management. A description of the boundaries of the relocation area; and an assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts (coordinated as appropriate with the environmental assessment of the main investment requiring the resettlement). 14. Community participation. Involvement of resettlers and host communities: • A description of the strategy for consultation with and participation of resettlers and hosts in the design and implementation of resettlement activities; • A summary of the views expressed and how these views were taken into account in preparing the resettlement plan; • A review of the resettlement alternatives presented and the choices made by displaced persons regarding options available to them, including choices related to forms of compensation and resettlement assistance, to relocating as individuals, families, or as parts of preexisting communities or kinship groups, to sustaining existing patterns of group organization, and to retaining access to cultural property (e.g. places of worship, pilgrimage centers, cemeteries); • Institutionalized arrangements by which displaced people can communicate their concerns to physical investment authorities throughout planning and implementation, and measures to ensure that vulnerable groups are adequately represented; and • Measures to mitigate the impact of resettlement on any host communities, including consultations with host communities and local governments, arrangements for prompt tendering of any payment due the hosts for land or other assets provided to resettlers, arrangements for addressing any conflict that may arise between resettlers and host communities; and any measures necessary to augment services (e.g., education, water, health, and production services) in host communities to make them at least comparable to services available to resettlers. 15. Grievance procedures. Affordable and accessible procedures for third-party settlement of disputes arising from activities included in the LARAP; such grievance procedures should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms. 16. Organizational responsibilities. The organizational framework for land acquisition and resettlement, including identification of agencies responsible for the implementation of the LARAP, the delivery of resettlement measures and provision of services; arrangements to ensure appropriate coordination between agencies and jurisdictions involved in implementation; and any measures (including technical assistance) needed to strengthen the implementing agencies' capacity to design and carry out resettlement activities; provisions for the transfer to local authorities or resettlers themselves of responsibility for managing facilities and services provided under the physical investment and for transferring other such responsibilities from the resettlement implementing agencies, when appropriate. 17. Implementation schedule. An implementation schedule covering all resettlement activities, from preparation through implementation, including target dates for the achievement of expected benefits to resettlers and hosts and terminating the various forms of assistance. The schedule should indicate how the resettlement activities are linked to the implementation of the overall physical investment. 135 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 18. Costs and budget. Tables showing itemized cost estimates for all resettlement activities, including allowances for inflation, population growth, and other contingencies; timetables for expenditures; sources of funds; and arrangements for timely flow of funds, and funding for resettlement, if any, in areas outside the jurisdiction of the implementing agencies. 19. Monitoring and evaluation. Arrangements for monitoring of land acquisition and resettlement activities by the implementing agency, supplemented by independent monitors as considered appropriate by the Bank, to ensure complete and objective information; performance monitoring indicators to measure inputs, outputs, and outcomes for resettlement activities; involvement of the displaced persons in the monitoring process; submission of monitoring reports to the Bank; evaluation of the impact of resettlement for a reasonable period after all resettlement and related development activities have been completed; using the results of resettlement monitoring to guide subsequent implementation. Note: The information on the schedule of the implementation of the LARAP and the sources of funding may be summarized in a table. 136 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Contents of an Abbreviated LARAP An Abbreviated LARAP should be prepared for physical investments that affects fewer than 200 families or in cases where the impacts on the entire displaced population are minor. Impacts are considered minor if the affected people are not physically displaced and less than 20% of their productive assets are lost. An Abbreviated RAP covers the following minimum elements: 1. Description of the physical investment. General description of the physical investment and identification of the investment area. 2. Potential impacts. Identification of (i) the physical investment component or activities that will require land acquisition; and (ii) the zone of impact of such component or activities. 3. Census of Project Affected Persons (PAPs) and inventory of affected assets. The results of the census and the inventory of assets, including (i) a list of PAPs, distinguishing between PAPs with land rights and land users without such rights; and (ii) an inventory of plots and structures affected. The information generated by the census should be summarized in a table. 4. Legal analysis. Descriptions of legal steps to ensure the effective implementation of land acquisition under the physical investment, including, as appropriate, a process for recognizing claims to legal rights to land—including claims that derive from customary law and traditional usage. 5. Eligibility. Identification of the PAPs who will be eligible for compensation and explanation of the criteria used to determine eligibility. 6. Valuation of assets and calculation of compensation for losses . A description of the procedures that will be followed to determine the form and amount of compensation to be offered to PAPs. 7. Consultations with persons who lose land and other assets. A description of the activities carried out to (1) inform PAPs about the impacts of the physical investment and the compensation procedures and options and (2) give the PAPs opportunities to express their concerns. 8. Organizational responsibilities. A brief description of the organizational framework for implementing land acquisition. 9. Implementation schedule. An implementation schedule covering land acquisition, including target dates for the delivery of compensation. The schedule should indicate how the land acquisition activities are linked to the implementation of the overall physical investment. 10. Costs and budget. Cost estimates for land acquisition for the physical investment. 11. Grievance procedures. Affordable and accessible procedures for third-party settlement of disputes arising from land acquisition; such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms. 12. Monitoring. Arrangements for monitoring land acquisition activities and the delivery of compensation to PAPs. Note: the information on the schedule of the implementation of the RAP and the sources of funding may be summarized in a table (see suggested format below). 137 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Implementation Schedule and Funding Sources Activity Responsible Deadline Cost Source of institution (Rp) Funding 1. Consultation with the people in physical investment area on the physical investment and its potential impacts 2. Identification of affected people and assets 3. Deliberation on form and amount of compensation 4. Payment of compensation 5. Monitoring and evaluation 138 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 4 OUTLINE FOR UKL-UPL AND AMDAL STUDIES A. UKL-UPL Environmental Management Effort and Environmental Monitoring Effort (UKL-UPL) The UKL-UPL form is based on Article 8 from the Minister of the Environment Decree No. 16 Year 2012, which includes: a. identity of initiator; b. business and/or activity plan; c. environmental impact that will occur and the environmental management and monitoring program; d. number and types of environmental licenses that are required; e. statement of commitment to conduct all provisions in the UKL-UPL form; f. bibliography; and g. appendix The format of the UKL-UPL is as follows: a) Identity of Initiator 1. Initiator Name 2. Business Address, postal code, phone no, fax no, and email b) Business and/or Activity Plan 1. Name of business and/or activity plan 2. Location of business and/or activity plan. Attach a map that is built in accordance with cartographic rules and/or an adequate illustration of the location 3. Scale/size of the business and/or State the size, volume, capacity, and/or other magnitudes activity plan which can be used to provide an illustration of the scale of the activity. 4. An outline of the components in Explain: conformity of the location with regional spatial the business and/or activity plan and the indicative map of new license delays ( Peta Indikatif Pemberian Izin Baru, or PIPIB), principle approval and formal proof, description of planned activity components that have the potential to cause social and environmental impact c) Environmental Impact Caused by Environmental Management Effort and Environmental Monitoring Effort This section contains the table/matrix summarizing the environmental impact caused by the activity, environmental management and monitoring efforts, and information on environmental management and monitoring institutions. 139 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Example UKL-UPL Matrix Environmental Management Effort Environmental Monitoring Effort Environmental Management Type Type of Location of Time Period of Type of Location of Time Period of Description Source of Scale of and Monitoring of Environmental Environmental Environmental Environmental Environmental Environmental Impact Impact Institution Impact Management management Management Monitoring Monitoring Monitoring Write the Write Write the Write the type Write the Write Write Write Write Write the Write other activity the unit that of location of the information on information on information on information on institutions relevant that impact can environmental environmental the time period the method the location of the time/period related to information caused that describe management management of the and/or the of the planned environmental the can the scale effort that will effort environmental technique environmental environmental management environm occur of the be planned for management used for monitoring monitoring and monitoring ental impact each impact effort monitoring of impact caused by the the activity environmental quality which is used as an indicator of success for environmental monitoring 140 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 B. AMDAL Environmental Impact Assessment (AMDAL) Document Framework according to Minister of Environment Decree No. 16/2012 The ESIA Document consists of (article 4 Minister of the Environment Decree No. 16 Year 2012): a. TOR (Term of Reference); b. ANDAL; and c. RKL-RPL (Environmental Management Plan – Environmental Monitoring Plan) The Reference Framework contains: a. Introduction: background and objective of the business plan and/or activity and the ESIA study implementation. b. Scope: Description of the business and/or activity that will be analyzed, consisting of the ESIA study status, conformity of the planned activity location with the regional spatial plan, and a description of the business plan with a focus on activity components that have the potential to cause environmental impact based on the activity plan and its alternatives. c. Study Method: description of the data collection and analysis method that will be used, the method for forecasting significant impacts that will be used, and the holistic method to evaluate environmental impact; d. Bibliography: In the bibliography section, the author lists the literature or references that were used to write the TOR document. Citation of references must follow widely known academic etiquette; and e. Appendix: formal proof of principle approval, certification of EIA composer competence, proof of registration for document preparation services (LPJP), letter of ESIA study implementation team formation, biodata of ESIA preparation team personnel, statement letter signed on a stamp which states that the ESIA team member was actually the one preparing the document, other information on activity plans, formal proof that the activity plan conforms with the regional spatial plan, data and information on environmental baselines; proof of ESIA announcement, community involvement results (result of public consultation, discussions with stakeholders, and the result of data analysis of public consultation results), and other data that are considered important. 141 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Example summary table for the scoping process Scope Description of Planned Impacted Environmental Management Study Time Period Activity with the Environmental No. Efforts that have been Planned Potential Evaluation of Hypothetical Study Area (justify why this time Potential to Cause Component as part of the Activity Plan Impact Potential Impact Significant period was chosen) Environmental Impact Impact (DPH) Pre-construction Stage Construction Stage Operational Stage Post-operation Stage Example study method summary table Impact Forecasting Data collection method for Data analysis method for Evaluation method (not for individual No. DPH Relevant data and information Method forecasting forecasting impact but for overall impact) 142 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 ANDAL consists of: a. Introduction: summary of the business and/or activity plan, hypothetical significant impact, limits of study area, and study time limit based on scoping in the terms of reference (including any available alternatives); b. Detailed description of the initial environmental setting: contains a description of the environmental setting in detail at the proposed business and/or activity location consisting of environmental components affected by significant impact caused by proposed activities, businesses, and/or activities around the proposed activity location; c. Hypothetical significant impact: produce information on the scale and characteristics of significant impact for each hypothetical significant impact that was studied; d. Holistic evaluation of environmental impact : describe the result of evaluation of the relationship and interaction between hypothetical significant impacts to determine the characteristic of the total environmental impact caused by the proposed business and/or activity; e. Bibliography: important data and information must be supported by updated literature listed in a bibliography using standard bibliographical format; and f. Appendices: Terms of Reference Agreement or Terms of Reference Administrative Completeness Statement, detailed data and information on the environmental setting (tables, graphs, and photos of the environment if needed), summary of basic theories, assumptions, procedures, processes, and calculations used to forecast impact, summary of theories, assumptions, procedures, processes, and calculations used to holistically evaluate environmental impact, other relevant data and information. 143 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Example impact analysis summary table No. DPH Initial Impact Forecasting Result Impact Evaluation Environmental Note: Result Setting There are two options for forecasting: 1. Comparison of environmental conditions with and without the activity without considering the natural change in environmental conditions 2. Comparison of environmental conditions with and without the activity by considering natural changes in environmental conditions (an analysis of the natural changes in environmental conditions is required) Pre-construction Stage Construction Stage Operation Stage Post-operation Stage RKL – RPL consist of: a. Introduction: RKL-RPL implementation objective in general and clear statement. This statement must be systematic, simple, and clear; b. Environmental Management Plan (RKL): describe the forms of environmental management conducted on the impact to avoid, prevent, minimize, and/or control the negative impacts and improve positive impacts. c. Environmental monitoring plan (RPL): briefly describe the monitoring plan in matrix or table form for caused impact; d. Number and types of required environmental protection and monitoring permits (PPLH): in the case of proposed business and/or activities required PPLH permit, accordingly describe identification and formulation of required number and types of environmental permit list and environmental management based on environmental management plan; e. Statement of proponent’s commitment to conduct provisions in RKL-RPL: consist of proponent’s statement to conduct RKL-RPL signed in stamped paper; f. Bibliography: in this part, informs data source and information used for RKL-RPL development, either books, magazine, essay or scientific researches report. All literatures must be written accordingly to literature writing guidance; and g. Appendix: significant and relevant data and information. 144 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Example of environmental management plan (RKL) matrix Managed Environmental Environmental Environmental Environmental Source of Environmental No. Environmental Management Management Management Time Management Impact Management Type Impact Success Indicator Location Period Institution Significant Impact Managed (Result of Management Recommendation from the ANDAL) Other Impacts Managed (environmental management that has been planned since the beginning in the activity plan, SOP, government technical guidelines, international standards, etc.) Example environmental monitoring plan (RPL) matrix Environmental Impact Monitored Environmental Monitoring Type Environmental Monitoring Institution Type of Impact Caused No. Indicator/ Source of Monitoring Time & (can be Data Collection & Report Recipient Parameter Impact Location Frequency Implementer Supervisor ambient or at Analysis Method the source) 145 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 5 CHANCE FINDS PROCEDURE 1. Definition. A chance find is archaeological, historical, cultural, and/or remain material encountered unexpectedly during physical investment construction or operation. A chance find procedure is a physical investment-specific procedure which will be followed if previously unknown cultural heritage is encountered during physical investment activities. Such a procedure generally includes a requirement to notify relevant authorities of found objects or sites by cultural heritage experts; to fence off the area of finds or sites to avoid further disturbance; to conduct an assessment of found objects or sites by cultural heritage experts; to identify and implement actions consistent with the requirements of the World Bank and Indonesian law; and to train physical investment personnel and physical investment workers on chance find procedures. 2. Objectives. a. To protect physical cultural resources from the adverse impacts of physical investment activities and support their preservation. b. To promote the equitable sharing of benefits from the use of Physical Cultural Resources (PCR). 3. Procedure. If the proposed activity discovers archeological sites, historical sites, remains, and/or objects, including graveyards and/or individual graves during excavation or construction, the activity shall: a. Halt the construction activities in the area of the chance find; b. Delineate and fence the discovered site or area; c. Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive remains, a night guard shall be arranged until the responsible local authorities or the district/provincial Department of Culture, or the local Institute of Archaeology, if available, to take over; d. Forbid any removal of the objects by the workers or other parties; e. Notify all physical investment personnel of the finding and take the preliminary precaution of protection; f. Record the chance find objects and the preliminary actions; g. Notify the responsible local authorities and the relevant Institute of Archeology immediately (within 24 hours or less); h. Responsible local authorities would be in charge of protecting and preserving the site before deciding on subsequent appropriate procedures. This would require a preliminary evaluation of the findings to be performed by the local Institute of Archaeology. The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage; these include the aesthetic, historic, scientific or research, social, and economic values; i. Decisions on how to handle the finding shall be taken by the responsible authorities. This could include changes in the physical investment layout (such as when finding an irremovable remain of cultural or archeological importance) conservation, preservation, restoration, and/or salvage; j. Implementation for the authority decision concerning the management of the finding shall be communicated in writing by relevant local authorities; k. The mitigation measures could include the change of proposed project design/layout, protection, conservation, restoration, and/or preservation of the sites and/or objects; l. Construction work at the site could resume only after permission is given from the responsible local authorities concerning safeguard of the heritage; and m. The physical investment proponent is responsible for cooperating with the relevant local authorities to monitor all construction activities and ensure that the adequate preservation actions are taken and hence the heritage sites protected. 146 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 6 INDIGENOUS PEOPLES CONSULTATIONS 1. Indigenous Peoples, or Masyarakat Adat (Customary Communities) or Masyarakat Hukum Adat (Customary Law Communities) or “ Masyarakat Tradisional” (or Traditional Communities), three terms usually used interchangeably for IPs in Indonesia, may be vulnerable to the loss of, alienation/resettlement from, or exploitation of natural and cultural resources. IPs communities are often among the poorest of the poor in the community and closely tied to their settlements, lands, and related natural resources upon which their livelihoods depend. Frequently, these lands and settlements are traditionally owned or under customary use and often not legally recognized by national laws. In recognition of this vulnerability, interventions introduced with the objectives to improve land administration and address informal settlements may potentially alienate and/or displace IPs if the mechanisms for Free, Prior and Informed Consultations (FPICs) to obtain broad support are not built into physical investment design and implementation. 2. Objective. The extent, frequency, and degree of engagement required by the consultation process should commensurate with the identified risks and potential adverse impacts and with the concerns raised by affected IPs. FPICs are built in a mutually accepted process between affected communities and physical investment actors. FPICs serve at least two purposes: a. Provide a platform to undertake a process of consultations in good faith and in a manner that provides affected IPs with opportunities to express their concerns and views on the sharing of development benefits, risks, impacts, and mitigation measures and explore ways to leverage culturally and socially acceptable benefits. b. Provide a two-way mechanism for the agency/entity proposing the physical investment (with the assistance of consultants or local experts) to engage with IPs and their organizations, including Adat councils, community groups, and community leaders to consider and respond to the views and concerns expressed by affected IPs prior to physical investment execution. 3. Procedures. FPICs should be orientated towards obtaining broad community support and by which, broad community support consists of a collection of expressions by affected community members and/or their recognized representatives in support of the proposed physical investment activities. Although FPICs do not necessarily require unanimity, and in some instances decisions may be achieved even though individuals or groups within the community disagree, FPICs lay out organized and iterative processes through which decisions and measures adopted by the investment activity incorporate the views of the affected IPs on matters that affect them directly. 4. The FPIC needs to be built on gender-sensitive and inter-generationally inclusive approaches. Effective FPICs are built upon two-way processes that should: a. Involve members of affected communities and their recognized representative bodies and organizations in good faith. b. Capture the views and concerns of men, women, and vulnerable community segments including the elderly, youth, displaced persons, children, people with special needs, etc. about impacts, mitigation mechanisms, and benefits where appropriate. If necessary, separate forums or engagements should be conducted based on their preferences. c. Begin early in the process of identification of environmental and social risks and impacts and continue on an ongoing basis as risks and impacts arise. d. Be based on the prior disclosure and dissemination/socialization of relevant, transparent, objective, meaningful, and easily accessible information which is in a culturally appropriate language(s) and format and is understandable to affected IPs. In designing consultation methods and use of media, a special attention needs to be paid to include the concerns of Indigenous women, youth, and children and their access to development opportunities and benefits. e. Focus on inclusive engagement on those directly affected rather than those not directly affected; f. Ensure that the consultation processes are free of external manipulation, interference, coercion, and/or intimidation. The ways the consultations are designed should create enabling environments for meaningful participation, where applicable. In addition to the language(s) and media used, the timing, venues, and participant composition need to be 147 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 carefully thought through to ensure everyone could express their views without repercussions. g. Be documented. 5. In deciding whether to proceed with the physical investment, the agency/entity with inputs from consultants and experts ascertains on the basis of a social assessment and FPIC whether affected IPs provide their broad support to the physical investment. Where there is such a support, the agency/entity should prepare: a. Documented evidence of FPICs, as well as measures taken to avoid and minimize risks to and adverse impacts of the affected IPs. This includes list of participants, meeting minutes and other documentation (e.g. photos, video, etc.); b. Additional measures, including physical investment design modification, alternative locations, and, where applicable, compensations to address adverse effects on affected IPs and to provide them with culturally and socially appropriate benefits; c. Action plan and recommendations for FPICs during physical investment implementation, monitoring, and evaluation, and d. Any formal agreements reached with affected IPs and/or their representative organizations. 6. The World Bank will review the process and the outcome of the consultation carried out by the agency/entity to satisfy itself that the affected IPs have provided their broad support to the physical investment. The Bank does not proceed further with/physical investment processing if it is unable to ascertain that such support exists. 7. Requirements. To ensure that FPICs can be ascertained, the following requirements are needed to determine whether: a. The level of engagement in a way that enables informed participation of affected IPs is acceptable; b. The level of support and dissent among affected IPs for the physical investment is taken into account into decision making and development of mitigation measures. Consideration Requirements Project’s strategy and principles on - Mainstream the FPIC; engagement - Project Operational Manuals on FPICs; - Budget and personnel provisions; - Consultation schedules and other supporting documentation. Stakeholder identification and - Stakeholder analysis as part of the SA; analysis Community Engagement - Consultation plan, public consultation and disclosure plan, and stakeholder engagement plan; - Schedule and record of community engagement including discussions and consultations with community members and their representatives. Information disclosure - Disclosure plan, including schedules - Materials prepared for disclosure and consultations; - Record/minutes of discussions/consultations with community members and their representatives Free, Prior, and Informed - Record/minutes of discussions/consultations with community Consultations members and their representatives; - Documentation of measures taken to avoid/minimize risks to and adverse impacts on affected IPs based on community feedback; - Draft of action plan; Consultations with vulnerable - Engagement and public consultation plan groups - Record/minutes of discussions/consultations with members and representatives of vulnerable groups - Documentation of measures taken to avoid/minimize risks to and adverse impacts on vulnerable groups based on community feedback - Draft of action plan Grievance redress mechanism - Organizational structure and responsibilities and procedures to manage grievances; - Record of grievances received, including expressions of support or dissent; 148 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Consideration Requirements - Record/minutes of discussions with community members or representatives with regards to grievance redress. Feedback to affected IPs (to - Documentation of risk mitigation measures demonstrate that concerns and - Record/minutes of discussions with community members and their recommendations have been representatives; accommodated in the physical - On-going reporting on implementation of action plan; investment and rationale why - Revisions in physical investment activities and action plan; recommendations have not been - Surveys/interview records of affected IPs. accommodated) Formal expressions of support or - Record/minutes of meetings/public consultations with community dissent members and their representatives; - Formal letters/written petitions of support/objection submitted by the community and/or their representatives; Informal expressions of support or - Photographs, media reports, personal letters or third party accounts objection (NGOs, CBOs, etc.) Evidence of good faith consultations - Face-to-face interviews with community members/representatives in the consultations; - Agreements reached with affected IPs (e.g. MoU, Letters of Intent, Joint Statements, etc.) - Action plan, e.g. benefit sharing, development plan, etc. 149 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 7 CONTENT OF INDIGENOUS PEOPLES PLAN (IPP) The following template presents the outline of an IPP. The template can be further developed based on field conditions and as per characteristics of the physical investment activity. Title of Chapter/Sub- Content/Remarks Chapter 1. DESCRIPTION OF THE PHYSICAL INVESTMENT Summary Description of physical investment activity (concerning areal boundaries, location, type of occupation, area size, area of influence, etc.) 2. SUMMARY OF SOCIAL ASSESSMENT 2.1. Baseline Data on IPs • Baseline information on the demographic, social, cultural, and political characteristic of the IPs community, the land and territories traditionally owned or customarily used or occupied and the natural resources that they depend upon • Identification of key physical investment stakeholders and elaboration of culturally appropriate process for consulting with the IPs at each stage of physical investment cycle 2.2. Summary of results of the free, prior, and informed consultations with the affected Indigenous Peoples’ communities that was carried out during project activity’s preparation and led to broad community support for the physical investment activity • Identification of potential adverse and positive effects of physical investment activity of the affected IPs within the physical investment activity’s area of influence • Development of measures necessary to avoid adverse effects or identification of measures to minimize, mitigate, or compensate for such effects and ensure that IPs receive culturally appropriate benefits from the physical investment activity • Mechanism to prepare and implement the public consultation with the Indigenous Peoples (consultation concerning the draft physical investment activity plan, etc. as relevant), to include: determination of location and schedule of consultation, information dissemination/invitation, etc. • Public consultation process • Result/resolution and mutual agreement obtained during consultation meeting. • Number and representative of organization/institution presented by participants in the said consultation meeting. 2.3. A framework for ensuring the free, prior, and informed consultations with the affected IPs communities during physical investment implementation 3. ACTION PLAN (INPUTS FROM THE RESULTS OF THE SOCIAL ASSESSMENT) 3.1. Activities for IPs to receive social and economic benefits 3.2. Activities to avoid, minimize, mitigate, or compensate for adverse effects 3.3. Measures to enhance the capacity of the physical investment management 3.4. Consultation with the affected IPs on the draft IPP 4. COST ESTIMATE AND FINANCING PLAN In form of table containing information about: type of activity, party in charge, timeline/milestones, cost, funding source, and remarks. 5. INSTITUTIONAL ARRANGEMENT TO IMPLEMENT IPP • Agencies responsible for managing the implementation of the IPP • Agencies responsible for reporting and monitoring on the implementation of the IPP • Arrangements for monitoring of the implementation of the IPP by the affected IPs 6. GRIEVANCE REDRESS MECHANISM ACCESSIBLE TO THE AFFECTED IPs • Mechanism for managing grievances as suggested by the results of the social assessment results 7. PHYSICAL INVESTMENT MONITORING, EVALUATION, AND REPORTING OF IPP IMPLEMENTATION Includes arrangement for free, prior, and informed consultation with the affected IPs • Explaining the work plan for monitoring implementation of IPs and reporting mechanism. • Monitoring on progress implementation of IPP • Monitoring on process implementation of IPP 150 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Title of Chapter/Sub- Content/Remarks Chapter • Reporting on implementation of (report to whom, which format to use, and deadline for submission of the report). ATTACHMENT Attach original or copy of documents as relevant to IPP, for example: • Information about the Physical Investment Activity (Map) • Table containing Baseline Data of IPs • Minutes of Dissemination and Consultation Meetings • Minutes of Agreement on Compensation Plan (if any) based on the consultations • Other relevant documentation 151 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 8 SOCIAL ASSESSMENTS FOR INDIGENOUS PEOPLES 1. Objectives. The purpose of a Social Assessment (SA) described in this appendix is to evaluate the physical investment’s potential positive and adverse effects on the Indigenous Peoples in the case that Indigenous Peoples are present in, or have collective attachment to, the physical investment area (based on the screening in accordance with the four criteria as specified in the World Bank OP 4.10 and criteria on Masyarakat Hukum Adat and/or local values), and to examine physical investment alternatives where adverse effects may be significant. The breadth, depth, and type of analysis in the SA are proportional to the nature and scale of the proposed physical investment ’s potential effects on the Indigenous Peoples, whether such effects are positive or adverse. In carrying out an SA, the city or district government will have to be assisted by a consultant team or individuals who are social scientists whose qualifications, experience, and terms of reference are acceptable to the GCA. Experts from local universities or local NGOs who have worked and have experienced in working with the IPs are encouraged to assist the city government. 2. Outline of the SA. The SA will at least cover the following: a. Description of Physical Investment Activity b. Information about the Physical Investment Activity’s site and condition of the cultural community c. Social Economic Characteristics of the affected Indigenous Peoples’ community i. General Characteristics of IPs ii. Specific characteristics of IPs • Cultural Social Institutions • Economic Condition and Source of livelihood for villagers • Cultural practices • Etc. iii. Stakeholders’ assessments d. A consultation process during the Social Assessment reflecting a free, prior, and informed consultation that leads to broad support from the affected IPs community on the proposed Physical Investment Activity. e. Findings and potential Physical Investment Activity’s impacts (positive and adverse), for example: • Any potential negative economic domination by outsiders • Transfer of ulayat rights • Limited use of natural resources • Etc. i. Proposed Mitigation • Partnerships with the proponent of the physical investment on natural resource use • Training for the affected IPs to be able to participate in the natural and cultural management for tourism development; ii. Etc. Potential positive impacts and efforts to maximize these impacts f. Proposed Action Plans in form of a table containing (to be included in the Draft IPP): i. Plan to maximize the positive impacts ii. Negative issues needing mitigation, as found from the study iii. The mitigation program iv. Physical Investment Activities within the mitigation framework v. Location where the impact and mitigation is going to be done vi. Consultation framework for preparing and implementing IPP vii. Institution in charge of preparing and implementing IPP viii. Schedule for implementation ix. Budget x. Source of budget xi. Remarks (other matters that need to be put in the report) 152 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 9 DOCUMENTATION FOR PUBLIC CONSULTATION FOR TOR ESMF (MINUTES, ATTENDANCE LIST AND PHOTOS). 1) Minutes of Meeting Date : April 3, 2017 Time : 8:30am – 12:30pm Location : Ambhara Hotel, Jakarta Attendees : Government (16 people), NGO (5 people) and others (3 people). • Preparation of KA ESMF should always involve local adat leaders; • Things that need special attention are related to the carrying capacity and capacity of the area, which has never been done by the Ministry of Environment and Forestry; • The planning of tourist destinations needs to pay attention to the travel patterns of both foreign and domestic tourists, along with the needs of tourism such as transportation (including infrastructure), accommodation, cuisine, attractions, travel packages offered by travel agencies, souvenirs, readiness of tour guides and others; • For the social aspect, it is necessary to identify the type of training that is needed by local people such as tourism training or tourism area management. Meanwhile for the environmental aspect, the issue of waste generated from various tourism activities should be considered. In addition, tourism activities should not degrade the quality of ecosystems and of protected flora and fauna; • There is also a need to assess the current environmental situation of the destination itself, as some already have issues such as water quality, solid waste management, and so on, and hence there is need for related mitigation measures for the potential impacts from the investments. • For maintaining conservation areas to become sustainable tourism destinations and attractions, there is a need to improve the supporting infrastructure and public facilities. • Limited human resources skills among local people for developing the local economy through village tourism such as homestays due to lack of capacity in tourism management, language skills, etc. • If there is a local community relocation plan, it is necessary to consider the safety and security aspects through the Land Acquisition and Resettlement Action Plan (LARAP). • Currently there are 13 conservation areas in Lombok Island and they are under the Directorate of Ecosystem Services (MOEF). Date : April 6, 2017 Time : 1:30pm – 5:30pm Location : Manohara Hotel, Borobudur, Magelang Attendees : Government (54 people), NGO (4 people) and others (2 people) • It is necessary to map all regulations related to Borobudur, such as the Law on Environmental Protection, Cultural Heritage Law, Spatial Law, and so on to know the legal framework and the policies/plans/programs to be referred to; • With the high target of 2 million tourists, many are worried about that the condition of the temple will be vulnerable in comparing the target to the carrying capacity calculations that show that only 128 people can be accommodated for in the temple building, 500 visitors for the temple yard, and only 10,308 visitors to the park area. Therefore, it requires a visitor management plan, improved readiness of temple buildings, and a visitor mobilization plan. • Associated with the development of Borobudur tourism, and as previously held and discussed Ratas (closed meeting) at Hotel Manohara which achieved 3 (three) things; (i) The establishment of the Authority Body, (ii) the preparation of the Master Plan for tourism development, and iii) the Plan for the Acceleration of Infrastructure Development • Need to do a technical study related to carrying capacity and capacity in the Jogja-Solo- Semarang corridor; 153 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • For each priority tourism destination, ESMF activities need to take into account the interests of the local community and local values within it, including identifying support for cultural arts activities and necessary tourist attractions. • An impact of the development of tourist areas is the change of “producer” communities (agriculture, plantation, and handicraft) as some residents move into the service sector. Conservation awareness campaigns/education are needed to inform local communities on the right way of carry out tourism-related activities in order not damage the environment or the existing ecosystem; • The Javanese people are very adaptive to cultural change. This might influence the disappearance of the characteristics and culture which could be an attraction in Borobudur; • There is a need to have a regulation that regulates water resources in the Jogja-Solo-Semarang region and supports water catchment areas (rehabilitation) as one need of the hotel industry is for clean water access instead of extraction through ground water. Date : April 10, 2017 Time : 1:30pm – 4:00pm Location : Inna Parapat Hotel, Lake Toba Attendees : Government (27 people) and NGO (2 people). • Destination Lake Toba covers seven kabupaten and kota around Lake Toba and 61 Kecamatan based on Presidential Regulation No. 81 of 2014. And, there are 28 districts directly related to the Lake Toba Authority body. • Currently each city/district around Lake Toba has compiled their own Kajian Lingkungan Hidup Strategis – Strategic Environmental Assessment (KLHS) on Lake Toba. • In 2016, all districts around Lake Toba have developed an action plan for the management of Lake Toba area, with a focus on handling aquaculture, domestic waste, and deforestation. • One of the crucial issues that needs attention is the handling of solid waste because currently there is no special regulation that governs the solid waste around Lake Toba. • In its implementation, the Integrated Tourism Master Plan should incorporate souvenir centers as part of the of tourist attractions which will help to improve people's livelihood. • An in-depth study of critical land in terms of erosion prone areas around Lake Toba is required because existing conditions currently at least 50% of the land areas are considered critical condition. • For sharing information, one of the participant’s expectation is to have an Environmental Information Center covering all kabupaten and kota around Lake Toba. • Social studies should include the necessary steps and activities that can be implemented (special studies), including livelihood studies, if people are affected by displacement due to the use of land in the development of Lake Toba area. • The ESMF should also include a cultural heritage component. For instance, UNESCO also considered intangible culture such as wayang and batik printing skills. This, however, would be better suitable in the tourism master plan. Date : April 12, 2017 Time : 1:30pm – 5:00pm Location : KLIA Senggigi Hotel, Lombok Attendees : Government (15 people) and NGO (2 people). • Delineation KSPN (Kawasan Strategis Pariwisata National) – National tourism strategic area (KSPN) Lombok Island is for whole island of Lombok. There is already a special economic zone Mandalika, whose planning development is done by the state-owned enterprise, ITDC. Therefore, the Government will focus on development outside of KEK Mandalika for the next 25 years. • The NTB Marine and Fisheries Office has developed a Zoning Plan for Coastal Zones and Small Islands (RZWP3K) for this year and it is in the draft stage of a local government regulation. • The type of tourism that is suitable for the island of Lombok is not a mass-tourism but eco- tourism; 154 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 • Department of Marine and Fisheries Provinsi Nusa Tenggara Barat has proposed a study of coral reefs in NTB, to examine their current state. They also proposed a study on the study of mangrove ecosystems and their potential as tourism attractions; • Lombok Island, with a core of Mount Rinjani, is currently being proposed as a UNESCO Global Geopark and also as National Park of Biosphere Reserve by Ministry of Environment and Forestry (MOEF). • Capacity building is needed for local communities on the knowledge to develop the homestays sector. • There is a need to do an institutional review at the provincial and city/district levels on coastal management which formerly at district level but now it is under the guidance of the province. • The number of tourists in Gili Trawangan increases every year, but the island does not yet have a good waste handling system even though it produces 20 tons of waste per day (peak season) or 5–8 tons per day (low season). This requires a good waste management system. 155 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Attendance List (Jakarta)(Magelang, Borobodur) 156 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 2) (Lake Toba) 157 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 3.(Sengigi, Lombok) 158 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 3) Photographs (Magelang, Borobudur) (Lake Toba) (Sengigi, Lombok) 159 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 APPENDIX 10 DOCUMENTATION FOR PUBLIC CONSULTATION FOR DRAFT ESMF (MINUTES, INVITATION LIST, ATTENDANCE LIST) A summary of the key comments and responses during public consultation as shown below. Public consultation with multiple stakeholders took placed at three key tourism destinations and at central level. The presentation of the draft ESMF and discussion with multiple stakeholders conducted using the country’s national language, Bahasa Indonesia. Key Tourism Destination Total Description of stakeholders participants 1. Medan (Lake Toba) – 31 participants Government (Province, Kabupaten (s)/ 10th July 2017 Regency) & Non-Governmental Organization (NGOs) & University. 2. Mataram (Lombok) – 13th 40 participants Government (Province, Regency, City), July 2017 State-owned organization (ITDC), and Non-Governmental Organization (NGOs) & Universities. 3. Yogyakarta (Borobudur) – 41 participants Government (Central, Province, Regency, 17th July 2017 City), Non-Governmental Organization (NGOs) & Universities and Conservation Unit Borobudur. 4. Jakarta (Central level) – 30 participants Government Agencies and Non- th 19 July 2017 Governmental Organization (NGOs) & Universities. ISSUES/COMMENTS RESPONSES General 1. On selection of the boundaries of the three key The selection of the kecamatan or destinations that will be covered under the scope of sub-district(s) in all three key tourism the Integrated Tourism Master Plans (ITMPs). destinations were identified based on the demand assessment and market analysis report. 2. Capacity building and awareness building in regards There is a need to increase to the land acquisition processes are important for the awareness to the communities in local government and also for the communities. regards to land acquisition process and to participate in the consultation process for the preparation of Integrated Tourism Master Plans (ITMPs). 3. The ITMP Consultant must not only to think about In the TOR of ITMPs, the capacity programs that can directly engage communities in building program will cover SME and tourism activities, but also their long-term impacts to skills development program with a their livelihood opportunities and constrains. focus on enhancing competency based on certification and accreditation in service quality. Gaps in terms of legislation, regulation and enforcement. 4. Implementation of masterplan needs strong The ITMP consultant will prepare an coordination, monitoring and enforcement. There is institutional development program no action against violations of development that can for management of tourism 160 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 be inconsistent in the master plans that had been development masterplan during adopted. implementation. This will ensure that all relevant government institutions are committed in a concerted effort. 5. There is still a need for law enforcement against MPWH acknowledged they will work development that violates spatial planning. with the Steering Committee and the Technical Committee Team to ensure coordination mechanism will be strengthened enforcement of the spatial planning masterplan. Community awareness, participation and protection of local culture. 6. The inheritance of local knowledge and cultural MPHW agreed and it is importance heritage of Indigenous Peoples and local to combine international and local minority/community must be preserved for future knowledge to achieve sustainable generations. tourism development with the preservation of natural, cultural heritage and social assets. 7. The main issue of Candi Borobudur is conservation Noted and the TOR of ITMPs had and preservation. Visitors from all over the world already incorporated the preparation flocks to Borobudur because it is a world cultural of Borobudur Visitor Management heritage site. There are no other attractions in Plan as part of the deliverables. Borobudur or a visitor waiting areas as part of visitor management plan in order to control or manage crowdedness. 8. Local initiatives and tourism development such as Noted and the TOR of ITMPs had “desa wisata” in Lombok and in Toba (with cultural already incorporate the mapping and heritage) should be the starting point for further inventory of all tourism potentials tourism development. Small-scale, community/desa- and identify the proper further based tourism development is preferable (as they benefit more for local community and desa) versus development strategy, ensuring that large-scale tourism development. Government should tourism development will benefit facilitate this potential and promote innovations on utmost to local community and the desa wisata based tourism development villages. 9. There was a concern on the “readiness” of the Noted and the TOR of ITMPs will community in receiving and making the tourists identify area of strengthening needs comfortable, convenient and happy to visit or stay for the community outreach and longer in particular tourist attractions/destinations. In capacity building. The TOR of anticipating increase number of international tourists, local community’s awareness on tourism services and Program Management Support capacity need to be improved to be able to provide under the IPF could help to ensure good quality services. the design of capacity building program. On the key basic services or infrastructure that needs improvement 10. Infrastructure development should consider eco-road Noted and MPWH agreed as and eco-construction with consideration for facilitating infrastructure project that use green crossing by animals. Construction/maintenance of technology (greentech) and road infrastructure, small bridges etc. should also environmental friendly engineering consider the crossing used by animals. Mortality of animals should be considered by not disconnecting should be encouraged. existing habitat connectivity and no interference from vehicles passing through the road. Cultural heritage, land acquisition and community participation 161 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 10. Some physical cultural heritage assets are degrading, Noted and the TOR of the ITMPs will only few left (in the case of Lake Toba), and they are identify the potential tourist very potential to be developed as tourist attractions attractions, not only natural through proper protection, conservation and used in a resources but also cultural (tangible sustainable manner. Intangible local values and practices are also potential for tourism development. and intangible) resources. In preparation of the ITMPs, it is expected the community is fully on board for public consultations and help in identifying such resources. Cultural heritage experts will be hired under the TOR of the ITMPs as key experts, as and when needed. 11. In Lombok, there is not only indigenous peoples, but Noted and in the TOR of the ITMPs, also other local communities. The ITMP Consultant the Consultant will need to ensure should not neglect anyone from accessing to the active stakeholder engagement program design or the planning of the masterplan though the assessment of process. stakeholder mapping and also the stakeholder engagement plan. 12. For instance, Lombok will be looking at the whole This is related to the workforce and island masterplan. It will need to consider productivity there is a Balai under MPWH which and community empowerment. It will need a lot of provides construction services. One support from the community to engaging actively in of the tasks is to hold training related the tourism sector especially employment. to construction. They also have a working cooperation with ITDC in ensuring enough trained or skilled manpower. Most of the participants are from the village, Kuta and surrounding areas. 13. There are concerns for land selling by the local Communities in the tourism owners to investors or outsiders for quick monetary destination areas will be able to gain, which lead to the lack opportunity of the local participate in the preparation of the community to benefit from the long-term tourism ITMPs through intensive public development. consultations. This provide information and raising awareness on the future land use development and long term benefits. Coordination with other government agencies at central level, provincial level, district level and local agencies. 14. There is need for capacity building related to tourism The TOR of the ITMPs will also campaign and socialization to the communities. include the preparation of an Please explain how the tourism internal marketing institutional development program system will be carried out. for management of sustainable tourism development in destination area. 15. Substitution of local government personnel is often Noted and it will be discussed further not related to specialization but related to job rotation in the national level. basis. This needs to be further anticipated by the Program Management Unit on the turnover of local government personnel. 16. Mount Rinjani National Park has been denounced as Noted on the need of community garbage bin. Indonesia Ecotourism Network recalled engagement with local government that once they had a waste management program in and national park authorities is very Rinjani through engagement with the surrounding 162 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 community which had been successful. However, due important to ensure a successful to administrative changes and lack of enforcement program in waste management. government regulations related to national parks, the sight of garbage had started to reappear. Consultations 17. The ITMP Consultant must go directly to the field and The ITMP Consultant who will be conduct regular interactive dialogue with the selected is required to have communities to attempt to identify the right down- experience in preparing masterplan stream planning that needs to be build and improve in another country, minimum two on. countries. They will conduct intensive focus group dialogues with local governments and communities. 18. The ITMP Consultant needs to think about the right Noted and it is part of the TOR of the tourism planning (through technical design and visitor ITMPs to assess infrastructure gaps management program) that the visitors who visited and visitor attractions and facilities. Borobudur will spend the night around Borobudur as majority visitors tends to stay in Yogyakarta. 19. The ITMP Consultant must do social mapping. For Noted and in the TOR of the ITMPs, instance, in Lake Toba, where the power/influence of it is already mentioned that if the local tribe and clan is seen very influential in the applicable, Indigenous Peoples local level. There are customs rules that must be (IPs), local community presence considered when preparing the integrated tourism master plan. (with map) and affected will be assessed. 20. The ITMP Consultant needs identify potential impact Noted and in the TOR of ITMP will that is related to the environment especially in incorporate the regular approach considering administrative boundaries, ecological and combined with the tourism boundaries and social boundaries. This could relate approach. The ITMP tourism to environmental carrying capacity. Administrative approach will incorporate boundary issues often bring conflicts and must be infrastructure and non-infrastructure dealt with at an earlier stage before implementation. development into a comprehensive grand design towards developing a sustainable tourism program. Potential environment and social impacts from tourism development 21. Currently tourism development has become the Noted and again it is a combination country’s top priority in strategic planning and it can of infrastructure and community be instrumental in improving basic infrastructure in the awareness through enhancement of region. But what had happened is often tourists local tourism awareness raising (domestic and foreign) in Lombok, especially Mount program (“Sadar Wisata”). Rinjani National Park had caused more environmental In the PforR program, it aims to damages. Is the infrastructure made for tourism establish arrangements or development is to benefit the people or vice versa? strengthen emerging arrangements, such as Sustainable Tourism Observatories (STOs), as part of UNWTO International Network of Sustainable Tourism Observatories (INSTO), for monitoring and protection of natural and cultural assets at each destination. 22. One of the problem in developing tourism industry is Noted and in the PforR program, it related to provision of sanitation amenities and aims to enhance local tourism facilities for local communities and tourists. The other awareness raising programs (“Sadar key of sustaining sanitation amenities is the lack of Wisata”) and strengthen community continuity in the operation and maintenance budget. 163 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 The local community has no strong awareness of satisfaction feedback through annual good sanitation, maintaining the public amenities and surveys. keeping it clean and functional. Local governments do not play their roles and responsibilities optimally also plays a part in sustaining the lifespan of the public amenities. 23. There is Sustainable Tourism Observatory Program in Noted and in the TOR of the ITMPs, 5 locations which includes the three other key the Consultant will be also set the destinations (among the other two is located in West standards for the indicators based on Nusa Tenggara and Sleman) as an effort to mitigate baseline data that will be monitored the social impacts of tourism that can be used as a preparation of ITMP masterplan. by the UNWTOs Sustainable Tourism Observatories. 2) Invitation list public consultation of the draft ESMF a) Jakarta 164 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 ABSENSI PESERTA PEMBAHASAN DOKUMEN ESMF & ESSA UNTUK DESTINASI PARIWISATA PRIORITAS Jakarta, Ambhara - 19 Juli 2017 No Nama Institusi Email No. HP 1 Setyo S. Maasidik BTL UI ssarwanto@eng.ui.ac.id 0811-861-716 2 M. Husen H. STP Trisakti husen@stptrisakti.ac.id 0813-8837-0000 3 Virza Bank Dunia 4 Anugerah S.O DitP4K DJPRL KKP anugerahgege21@yahoo.com 0812-9913-6783 5 Ida Ayu Indira World Bank dindira@worldbank.org 0811-896-062 6 Amy Chua World Bank achuatanglim@worldbank.org 0856-4304-1895 7 Bertine World Bank 8 Oki Hadian WWF ohadian@wwf.id 0822-2003-3993 9 Hotman F.P Dit. KIP, DJCK friano_boy@yahoo.com 0812-8840-919 10 Arief Maulana World Bank asyamsani@worldbank.org 0878-7846-0143 11 Suteja Kementerian Pariwisata s.teja@ymail.com 0812-8495-191 12 Gtasanti Djais BPIW - PUPR 0878-8561-1846 13 Dewine E. S. BPIW - PUPR 0878-5362-6380\ 14 Qurratu Ainy Pnp - PUPR 0821-1437-1673 15 Siti Nusa Mardiah Kemenko Maritim nissa.nada@gmail.com 0895-0495-9267 16 Arie Asmady Bina Marga 0813-1810-5143 17 Basuki Rahmad KEHATI b_rahmad@kehati.or.id 0852-4743-9424 18 Hendra Adi Subdit LKJ, PJJ, BM subditikj.pjj@gmail.com 0812-7203-1177 19 Agastyan Akbar Pnp - PUPR agastyan.nugraha@gmail.com 0857-8404-5905 20 Subhany Kemendagri hany.prayitno@gmail.com 0812-1967-9565 21 Fico Fittorio K. Kemendagri ficokaban@gmail.com 0852-9607-2096 22 Rady Febrian Dit. PPLP, DJCK, Kemen PUPR subditplpkhusus@gmail.com 0821-1716-4471 23 Regina Martadillah Dit. PPLP, DJCK, Kemen PUPR subditplpkhusus@gmail.com 0856-6825-0020 24 Dian Triastuti Dit. PPLP, DJCK, Kemen PUPR diantrm@gmail.com 0812-6963-071 25 Aditya BAPPENAS 0822-1918-1051\ 26 Angger Anindito BAPPENAS angger.anindito@gmail.com 0817313-182 27 Dwi Ismar Pennie Direktorat Supan pennie.kanapi@gmail.com 0821-1091-3808 28 Dian Kamila, ST., MT. Direktorat Supan 29 Pak Hadi PUPR 30 Raetami Adira Saraswati ' ATR subditppatr@gmail.com 31 Gianti RC Suci ATR 32 Wita Simatupang INDECON info@indecon.or.id 0811-146-985 33 Dewitri Anggraini Kementerian Pariwisata (PIEP) dewitri.anggraini@gmail.com 0812-1382-5825 34 Putri Indah Lestari Kementerian Pariwisata (PIEP) putri.indahlestarii@yahoo.com 0812-2271-4234 35 Kevin BIMTEK (SDA) 36 Dewitri A. Kementerian Pariwisata 37 Putri Indah L Kementerian Pariwisata 38 Pietra W. WWF Indonesia pwidiadi@wwf.id 0811-138-436 39 Efran H. Direktorat Jembatan Bina Marga 0852-1896-4009 165 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 b) Yogjakarta 166 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 167 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 ABSENSI PESERTA PEMBAHASAN DOKUMEN ESMF & ESSA UNTUK DESTINASI PARIWISATA PRIORITAS Yogyakarta, Harper - 17 Juli 2017 No Nama Institusi Email No. HP 1 Hari Untoro Kementerian Pariwisata 0878-7677-8599 2 Pak Hadi BPIW - PUPR 3 Amy Chua World Bank achuatanglim@worldbank.org 4 Agus S Kecamatan Mungkid Magelang 0856-4304-1895 5 Dextron Ar Rissya BPIW - KIKS 6 Toni Suharyanto BPN Kabupaten Magelang 0856-2897-071 7 Epiphana Dinas Sosial Sleman epi-phg@yahoo.co.id 0812-2697-2375 8 Pramana Klaten/Bappeda bappedaklaten.ekonomi@gmail.com (027) 2321-046 Kementerian Pariwisata 9 Dewitri A. dewitri.anggraini@gmail 0812-1382-5825 (ASDEPPIEP) 10 M. A. Rafi Kementerian Pariwisata pirafi29@gmail.com 0852-1541-2993 11 Ari Swasikawah Balai Konservasi Borobudur arie_swastik@yahoo.com 0813-2887-0906 12 Afandi Kecamatan Kraton 0822-4273-1177 13 Juliana Bappeda Jawa Tengah julianaj60@gmail.com 0816-4256-108 14 Tantia Bappeda Jawa Tengah tantiahastharini@yahoo.com 0858-7610-2466 15 Sriyono BPN Kanwil DI Yogyakarta sriyono8@hotmail.com 0815-1720-5480 16 Larasati Kementerian Pariwisata larasatitebet@gmail.com 0819-3226-3951 17 Ninik Setia M. P-3 0812-8004-678 18 Purnama Bappeda Kota Yogyakarta mazbongong@gmail.com 0813-2881-1606 19 Djoko Wijono Puspar / UGM djoko_wijono@ugm.ac.id 0811-25783 20 Ukar T. Kecamatan Ngampilan ng@jogja.go.id 0857-4795-9111 21 RKH Nugrahani Bappeda DI Yogyakarta hanagenafa@gmail.com 0813-8692-1517 22 Kurniawan Bappeda Sleman ponimasaharahap@gmail.com 23 Agus P. Kecamatan Muntilan 0856-4352-151 24 Tekad W. Dinas PU SDA Taru Jawa Tengah tkdwina@gmail.com 0817-384-977 25 Budi Purwanta Dinas PUPKP Kulon Progo bdpurwanta@gmail.com 0853-8372-1314 26 Sugeng Priyanto Kecamatan Gedong Tengan 0815-7917-536 27 Arief Maulana World Bank asyamsani@worldbank.org 0878-7846-0143 28 Joko Rukminto Kecamatan Prambanan 0813-2827-3382 29 Monica Barenlitbangda Kabupaten Semarang mnc.santosa@gmail.com 30 Agustina Barenlitbangda Kabupaten Semarang agustina.bappeda@gmail.com 0878-292-343 31 Harry Wijayanto Kecamatan Salam Magelang hari-we@gmail.com 0878-3824-0683 32 Indroyono S. DPUPR Kota Magelang ndutepoko@yahoo.com 0812-2693-080 33 Arif Pribadi DPUPR Kota Magelang syarifhidayat007@gmail.com 0821-3738-0004 34 Budi Santosa Kecamatan Danurejan budisantosa72@gmail.com 0812-2790-858 35 Anung P. BPPM DI Yogyakarta anungprayitno61@gmail.com 0853-3855-9266 36 Titik Yuliati Disparpora Magelang 0857-2900-5303 37 Worosuryani Bappeda Bantul 0857-4393-6923 38 Shavitri N.D Dinas Pariwisata Sleman episan2001@yahoo.com 0896-0824-9135 39 Tri Agung DLH Kabupaten Magelang suharyonotriagung@gmail.com 0816-1984-1106 40 Eko Suharyono Kecamatan Prambanan Sleman ekosuharyono@gmail.com 0812-2294-0733 41 Didik K. Sofian Bappeda dan Litbangda Kabupaten Magelang didik.kabmglg@yahoo.com 0813-2574-4417 42 Maskur Bappeda dan Litbangda Kabupaten Magelang maskur@gmail.com 0815-7661-171 43 Fajar P. Bappeda Kulon Progo henrybugi@gmail.com 0852-9032-1542 44 Sigit Yasien DPTR Sleman sigit.tami@yahoo.com 0811-7575-161 45 Untung Subagyo Kanwil BPN Jawa Tengah pppkanwiljateng@yahoo.com 0815-7877-1104 46 Urip Raharjo Dinas Lingkungan Hidup kabupaten Magelang uraharjo@gmail.com 0812-1567-972 168 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 c) Mataram 169 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 170 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 171 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 172 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 d) Medan 173 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 174 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 No Name Institution Email Handphone Dinas Lingkungan Hidup Kabupaten 1 Manha N Manalu naulimanalu@gmail.com 085280346048 Humbang Hasundutan Dinas Sosial 2 Paneguan Malau paneguanmalau@yahoo.com 081370429603 Kabupaten Dairi PMDPPA 3 Melati Silalahi silalahimelati6@gmail.com Kabupaten Tobasa Dinas PMDPPA 4 Hansen Simalango Kabupaten Toba hansensimalango@gmail.com 085276983321 Samosir Bappeda Kabupaten 5 Agus S Kacaribu aguskacaribu@gmail.com 08126586551 Dairi Dinas PPAMD 6 Leni R. Simanjuntak 081376355970 Kab. Samosir Bappeda Sumatera 7 M. Hanafi gshanafi@gmail.com 081361760080 Utara Dinas Lingkungan 8 Izma Rizal Hidup Provinsi ir_ade@yahoo.com 08126520130 Sumatera Utara Bappeda Humbang 9 Novaria nova_trkm@yahoo.com 081361273762 Hasudutan Bappeda 10 Rismauli M. Silalahi bappeda_simalungun@yahoo.com 081361311423 Simalungun Dinas Lingkungan Hidup Kabupaten 11 Dwi Sapta Vivi vivi_tanikim@yahoo.com 081376768348 Humbang Hasundutan Dinas Sosial 12 Tiar Turonid arn.picunp@gmail.com 082129237888 Kabupaten Samosir 13 Adner Silaen Bappeda Tobasa adner.silaen@gmail.com 081265235353 Bappeda Provinsi 14 Muara miso481@yahoo.com 08126486853 Sumatera Utara 15 Rawabi Simbola Dinas PPAMD rawabis32@yahoo.com 082161002258 Pemda Kabupten 16 S. Sinamu gip8csinamu@yahoo.com 085297653471 Dairi DLH Kabupaten 17 Rickson Panggabean ricksonpanggabean@yahoo.co.id 081361426781 Dairi Bappeda Sumatera 18 Andriadi andriadi20@gmail.com 085263609020 Utara DPMD Kabupaten 19 N. Sianturi perasibst@yahoo.com 082163998999 Karo Bappeda Kabupaten 20 Budiater Saragi budiatersaragih@yahoo.co.id 085361098577 Samosir Budaya Warisan 21 Hairul 081361541976 Sumatera Dinas Perkim 22 Canro Purba Humbang canro_rawbe79@ymail.com 081262815600 Hasundutan 175 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK – Final, October 24, 2017 Dinas Pemberdayaan 23 Fatimah Boang Manalu fatimahboang@yahoo.com 81375520303 Perempuan dan Perlindungan Anak 24 Hadi PUPR-BPIW 081385989856 25 Evi Hermirasari WB ehermirasari@worldbankorg 08111990199 26 Virza WB Dinas PUPR 27 Binar Tarigan binar.tarigan64@gmail.com 081361038244 Kabupaten Karo 28 Nurlisa Ginting USU – STO nurlisa.ginting@gmail.com 0811608102 Bappeda Humbang 29 Joni P. Manulang jmanoellang@yahoo.co.id 0852761461116 Hasudutan Dinas PUPR 30 Paten Purba 081375762540 Kabupten Karo Dinas Lingkungan 31 Ramot Sipayung ramon.74yung_lh@yahoo.com 085215154444 Hidup Samosir 32 Dana P Tarigan Walhi danatarigan@gmail.com 08126344992 Dinas PUPR 33 Roni Fransisko fransisko366@gmail.com 085262276630 Kabupten Karo 176