SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI)

Pre-Scoping Report

Papua Kepulauan Economic Corridor

Ministry Of Foreign Affairs Of Denmark Pre-Scoping Report

January 2014

This report has been prepared under the DHI Business Management System certified by DNV to comply with Occupational Health and Quality Management Environmental Management Safety Management ISO 9001 ISO 14001 OHSAS 18001

Papua Maluku Pre-Scoping Report / JVB / 2014-01

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI)

Pre-scoping Report (Final Draft)

Papua Kepulauan Maluku Economic Corridor

Prepared for Ministry Of Foreign Affairs Of Denmark

Represented by Mr Peter Oksen

Project manager Joshua Jon van Berkel

Project number 61800814 Approval date Revision Classification Open/Restricted/Confidential

DHI Water & Environment (S) Pte Ltd• 1 Cleantech Loop • #03-05 CleanTech One • Singapore• 637141 Telephone: +65 67776330 • Telefax: +65 67773537 • [email protected]

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Papua Maluku Pre-Scoping Report / JVB / 2014-01

CONTENTS

1 Introduction ...... 1 1.1 Background on MP3EI SEA ...... 1 1.2 SEA Process and Current Phase ...... 1 1.3 Pre-scoping Activities ...... 2 1.4 Further SEA Steps ...... 4

2 Overview of MP3EI Planning in the Economic Corridor ...... 6 2.1 Delineation of Economic Corridor ...... 6 2.2 MP3EI Planning for EC ...... 6 2.2.1 Main Planned Economic Activities ...... 7 2.2.2 Main Policies and Regulations ...... 9 2.2.3 Zones of Investment Focus (KPI) ...... 9 2.2.4 Main Planned Infrastructure ...... 10 2.3 Overview of Autonomous Provincial Planning ...... 12 2.3.1 Papua Provincial Planning ...... 12 2.3.2 Malaku Provincial Planning ...... 12 2.3.3 North Maluku Provincial Planning ...... 12 2.4 Overview of major ongoing/to-be-implemented projects ...... 12 2.4.1 The Provinces of Papua and West Papua ...... 13 2.4.2 The Province of Maluku ...... 13 2.4.3 Province of North Maluku ...... 13

3 Summary of Relevant Baseline Features...... 15 3.1 Environmental Quality ...... 15 3.1.1 Water ...... 15 3.1.2 Air and Climate...... 17 3.1.3 Land Use and Soil ...... 18 3.2 Ecosystems ...... 19 3.2.1 Biodiversity ...... 19 3.2.2 Forests ...... 21 3.2.3 Freshwater Wetlands/ Peat Forests...... 25 3.2.4 Forests of Community Livelihood Importance ...... 26 3.2.5 Coastal Areas ...... 26 3.3 Social and Economic Aspects ...... 32 3.3.1 Human Health ...... 32 3.3.2 Livelihood ...... 34 3.3.3 Industry and Mining ...... 35 3.3.4 Energy and Waste ...... 35

4 Preliminary Overview of the Potential Issues for EC ...... 37 4.1 Deforestation / Degradation of Forests Functions ...... 37 4.2 Human Health Risks ...... 38 4.3 Livelihood Opportunities ...... 39 4.4 Land and Soil Degradation ...... 40 4.5 Water and Air Pollution ...... 41 4.6 Loss of Biodiversity ...... 42 4.7 Coastal Degradation ...... 43 4.8 Environmental Management ...... 43

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5 Main Conclusions and Preliminary Recommendations Resulting from Pre- Scoping ...... 45

A MP3EI Plannning Information in Papua EC ...... 1

B List of Potential Key Issues for the Papua Kepulauan Maluku EC ...... 1

C Baseline Data Available for Provinces in the EC ...... 1

D Pre-scoping workshop supporting informations ...... Error! Bookmark not defined.

D.1. Minutes from pre-scoping workshop ...... 1

D.2. List of pre-scoping workshop participants ...... 3

E List of References...... 1

FIGURES

Figure 2.1 Delineation map of Papua Kepulauan Maluku Economic Corridor ...... 6 Figure 2.2 Area Map of MIFEE in Papua province ...... 8 Figure 2.3 List of KPI with its economic development in Papua-Kepulauan Maluku EC ...... 10 Figure 2.4 Main planned Infrastructure in Papua-Kepulauan Maluku EC ...... 11 Figure 3.1 Coral reefs, Seagrass and Mangrove distribution in Papua- Economic Corridor (BIG, 2013; Ministry of Marine Affairs and Fisheries, 2013 and Ministry of Forestry 2013) ...... 31

TABLES

Table 3.1 Water Quality Monitoring Results in Papua ...... 15 Table 3.2 Water Quality Monitoring Results in Maluku ...... 16 Table 3.3 Land Use of Papua ...... 18 Table 3.4 Waste disposal alternatives in Maluku (2007) ...... 19 Table 3.5 Protected Marine Species in Papua and Maluku ...... 21 Table 3.6 Land Cover of Papua according to MIH Mapping Program (2010) and SLHE Papua (2011) ...... 22 Table 3.7 Land Cover of Maluku in 2010 according to MIH Mapping Program ...... 23 Table 3.8 Land Cover of Maluku in 2007 & 2010 according to SLHE Maluku (2011) ...... 24 Table 3.9 Wetland distribution in Papua (2007)...... 25 Table 3.10 Coral Reef area in Papua and Papua Barat according to SLHD Papua (2011) ...... 26 Table 3.11 Coral Reef area in North Maluku Province according to SLHD Maluku (2011) ...... 27 Table 3.12 Coral Reef area in Maluku Province from SLHD Maluku (2011) ...... 28 Table 3.13 Mangrove Cover in Papua according to SLHE Papua (2011) ...... 28 Table 3.14 The area of mangroves in North Malukubroken down across districts ...... 29 Table 3.15 The area of mangroves in Maluku broken down across districts ...... 29 Table 3.16 The area of seagrass beds in Maluku province broken down across districts (SLHD Maluku 2011) ...... 30 Table 3.17 The area of seagrass beds in Papua province broken down across districts (SLHD Provinsi Papua 2009)...... 30

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Table 4.1 Areas of specific concern for deforestation ...... 37 Table 4.2 Areas of specific concern for human health risks ...... 38 Table 4.3 Area of specific concern for livelihood opportunities...... 39 Table 4.4 Area of specific concern for land and soil degradation ...... 40 Table 4.5 Area of specific concern for water and air pollution ...... 41 Table 4.6 Area of specific concern for loss of biodiversity ...... 42 Table 4.7 Area of specific concern for coastal degradation ...... 43 Table 4.8 Area of specific concern for environmental management ...... 44 Table 5.1 Preliminary recommendations according to findings from Pre-Scoping activities ...... 45

APPENDICES

A MP3EI Plannning Information in Papua EC

B List of Potential Key Issues for the Papua Kepulauan Maluku EC

C Baseline Data Available for Provinces in the EC

D Pre-scoping workshop supporting informations

D.1. Minutes from pre-scoping workshop

D.2. List of pre-scoping workshop participants

E List of References

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Introduction

1 Introduction

1.1 Background on MP3EI SEA

In 2011, the Government of introduced the first version of the Master Plan for Acceleration and Expansion of Indonesia Economic Development 2011-2025 (MP3EI). The MP3EI represents a core of Indonesia’s long-term development strategy with its prime objective “to realize the Indonesia 2025 vision to create a self-sufficient, advanced, just, and prosperous Indonesia and to transform Indonesia into a developed country by 2025”. The MP3EI includes a strategic focus on 22 economic activities (i.e. the Policy) and the implementation of these activities in the defined Economic Corridors (ECs).

While executing the recently released updated version of the MP3EI, however, it was realised that the MP3EI and associated National Medium Term Development Plan (RPJMN) needed to deepen their consideration of social and environmental factors to assure the overall vision of sustainability in Indonesia. Thus, along with several other initiatives, the Strategic Environmental Assessment (SEA) was chosen as a method for realizing the required level of integrated policy and planning development. The SEA is required by Indonesian legislation for policy, planning and program development.

To accomplish the required SEA Greening, Bappenas, together with the Ministry of Economic Coordination a key MP3EI coordinating body of the Government of Indonesia (KP3EI), was charged with developing an appropriate SEA approach. This approach entails the execution of one MP3EI ‘Policy’ SEA and six Economic Corridor (EC) SEAs. Further, Bappenas approached the Royal Danish Embassy and DANIDA for assistance via the third instalment of the Environmental Support Program (ESP3).

The project MP3EI SEA was launched in June 2013 and shall last until July 2014. This document consists of the pre-scoping reporting of one of the six EC SEAs.

1.2 SEA Process and Current Phase

In accordance with general objectives of SEA i.e. addressing the strategic levels of decision- making to effectively minimise risks to environmental resources and human health likely resulting from policy, plan or program implementation, whilst providing opportunities for growth and sustainable development options, the MP3EI SEA intends to provide creditable strategic environmental analyses of the MP3EI Policy and Economic Corridor Planning and, where necessary, recommendations on how to minimize or avoid associated negative effects and the means to strengthen positive effects. Optimally, the SEAs shall foster the integrated evolution of a truly sustainable MP3EI, along with the associated planning procedures (e.g. RPJMN and provincial planning) as well as – to the extent possible – individual projects.

The SEA process for the Economic Corridor includes following analytical steps:

• Pre-scoping involves the initial analysis of the Economic Corridor (EC) Plans and related baseline features to focus the SEAs and provides likely feedback on the key issues – this step includes also first consultations with the relevant stakeholders through workshops in each EC.

• Scoping Analysis involves comprehensive identification of the key strategic issues via structured expert analyses and stakeholders´ consultations for each EC.

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• Analysis of likely effects of proposed activities in ECs involves the verification of whether an identified issue is strategic through appropriately developed qualitative and (semi) quantitative analysis techniques.

• Formulation of Mitigation Measures is based on the characterisation of strategic issues and likely impacts identified from the previous stage. This will allow for experts to, as far as possible, pinpoint feasible and implementable measures to avoid or mitigate likely adverse impacts as well as to enhance potential positive ones.

• Compilation of the SEA Report to summarize all findings including conclusions from consultations with relevant stakeholders and formulate final set of the recommendations.

This document, as provided above, presents the initial pre-scoping EC feedback and is the current stage of the SEA EC process. It has been conducted during September – October 2013 and involved initial preliminary analysis of the likely strategic issues for the Papua Mauluk EC. It has been carried out by the MP3EI SEA Team experts, with support from consultation with the central authorities and national NGOs; as well as the information obtained from the Pre-scoping & Baseline Workshop MP3EI SEA for Papua Malulu EC (Makassar, October 10, 2013 – see Appendix B.2 for detailed information). Besides analytical work and consultations, the data collection – especially provincial Spatial and Development Plans – has also been undertaken as part of pre-scoping tasks.

This report summarizes findings from the pre-scoping analyses and consultations i.e. provide an overview of the preliminary scope of assessment, baseline data and reviews of relevant plans. Findings from pre-scoping will provide a basis for further and detailed analysis of the key strategic issues in the scoping phase.

1.3 Pre-scoping Activities

The pre-scoping activities of Papua Kepulauan Maluku EC were performed to assist definition of the preliminary scope of the assessment of the EC (i.e. the list of the key strategic issues) in order to underpin further analytical work.

Activities to carry out the aforementioned, are as follows:

1.3.1 Early stakeholder discussions

A variety of pre-scoping issues were discussed with the KP3EI, Bappenas and particularly the leading EC planning ministry, i.e. Ministry of Transportation, as well as other stakeholders related to Papua- Maluku EC. The focus of these discussions was:

- Obtaining a list of projects initiated or soon to be initiated, stages of completion for implemented projects; selection criteria for project selection (if applied) in Papua Kepulauan Maluku

- Linkages between MP3EI EC and other plans at the national and provincial levels

- Opportunities for SEA input at the EC level (e.g. room for input or modification; integration of environmental criteria)

- Identify what KP3EI/Bappenas/KLH consider to be key environmental, social, etc, concerns and problems related to the implementation of the MP3EI within the Papua Kepulauan Maluku EC and accessibility of provincial level data and information (both from the GOI and other stakeholders)

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Introduction

- Prior to the commencement of prescoping workshop, the Papua Kepulauan Maluku EC SEA team has managed additional consultative meetings with stakeholders and carried out related works as described in the following subsections.

• Ministry of Transportation as the lead Ministry for MP3EI in Papua Kepulauan Maluku EC MoT is the designated coordinating ministry for Economic Coridor 6 –Papua and Maluku. Within MoT, the Research and Development Body (Balitbang) is the unit responsible for this task. From the meeting, several concerns and issues related to the MP3EI plans in Papua were were raised and documented, including the following:

- MoT suggested that representatives from district planning boards (Bappedas) where KPIs (Zones for Investment Focus) (See Section 2.2.3) are located are invited. There are 15 KPIs in Maluku and Papua.

- MoT endorsed invitations to NGO, namely WALHI, AMAN, and JATAM.

- MoT noted that they have an existing collaboration with Leeds University on carbon reduction activities (CRCF). There may be a need to coordinate with this project in collecting/developing baseline data.

- MoT’s Balitbang deals more with the real economic sectors within KPIs, while infrastructure planning falls under the responsibility of MoT’s Bureau of Planning, which in the MoT’s Secretariat General Office.

- Complete information regarding these concerns and issues can be viewed in detail in the minutes of meeting in Appendix C.

1.3.2 Preliminary list of key potential issues in Papua Kepulauan Maluku EC

Using the master list of key strategic issues identified for the MP3EI policy SEA, a more specific list was developed for Papua Kepulauan Maluku EC using existing literature and reports (e.g. Environmental Yearbook, etc.) and briefly summarised regarding the following:

- Highlight issues of importance in Papua Kepulauan Maluku EC

- Specify detailed problems and concerns for each issue within the Papua Kepulauan Maluku EC

- Indicate need for further data/information

- Suggest key stakeholders relevant to a specific issue in the Papua Kepulauan Maluku EC

1.3.3 Review Spatial Plans, national sectoral plans and provincial development plans (RPJPD, RPJMD)

A review of the plans related to the MP3EI and Papua Kepulauan Maluku EC has also been undertaken during the pre-scoping phase in order to assist to the scoping process with a full understanding of the objectives of the relevant plans, proposed developments and constraints for each area. However, since the most planning documents are available in the provincial level, only the information regarding the status of the plans are presented at this stage. The baseline mission to the corridor is expected to update the information regarding planning.

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1.3.4 Stakeholder Mapping

With assistance from the project stakeholders, the SEA team have prepared an initial list of relevant stakeholders for Papua Kepulauan Maluku EC during the pre-scoping phase. The initial list of relevant stakeholders can be viewed in detail in Appendix B

1.3.5 Organizing Pre-scoping and data collection workshop

A workshop was organized in Makassar on October 10th, 2013, in order to:

- To get feedback on proposed issues, concerns and problems relevant to Papua Kepulauan Maluku EC

- To get information on ongoing and planned development within the EC

- To obtain baseline data from provincial agencies

Conclusions from the discussions and main comments received are summarized in Appendix B.2 of this Report.

1.3.6 Finalizing and disseminating Pre-Scoping Report

Results of the pre-scoping phase, in terms of the preliminary scope of assessment, baseline data and relevant plans´ review, are captured in this pre-scoping report and will be submitted to the Beneficiaries prior to the scoping session.

1.4 Further SEA Steps

The next immediate step after pre-scoping is to undertake scoping activities. This will include a number of activities, including: (a) collection of additional data and information needed as identified in the Pre-Scoping phase; (b) literature review of data and information collected for supporting the list of potential key issues in the Economic Corridor; (c) undertaking internal scoping among the SEA experts; (d) undertaking a SEA Scoping Workshop with stakeholders; and (e) completing and submitting the final Scoping Report.

Key steps in planning for the scoping phase include:

• Follow up with participants from the pre scoping workshops to collect baseline datasets identified during the workshops.

• For Papua Kepulauan Maluku EC target additional baseline data focusing on key economic sectors including Food Agriculture, Copper and Nickel mining, Oil and Gas, and Fisheries.

• Collect additional baseline data focusing on districts where MP3EI KPIs are located recognising that these districts are likely to be significantly impacted by MP3EI projects to a greater degree than other districts in the EC. These include Sofifi, Ambon, Sorong, Manokwari, Timika, Jayapura and Merauke. In addition, the socioeconomic status of districts in the EC is highly variable, limiting the value of the provincial baseline datasets.

• For the up-coming Scoping Workshop, wider participation of stakeholders is needed including representatives from Districts where KPIs are located to ensure stakeholders knowledgeable of the environmental and socio economic context in these areas have the opportunity to contribute. To facilitate this broader participation, separate workshops should

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Introduction

be held in Papua (Jayapura) and Maluku (Ambon) recognising logistical and financial difficulties that stakeholders from this EC have in travelling outside their provinces to attend workshops.

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2 Overview of MP3EI Planning in the Economic Corridor

This section outlines the main aspects of the overall MP3EI planning and the autonomous provincial plans in the Papua Kepulauan Maluku Economic Corridor Plan.

2.1 Delineation of the Papua Kepulauan Maluku Economic Corridor

Figure 2.1 Delineation map of Papua Kepulauan Maluku Economic Corridor

The Papua Kepulauan Maluku Economic Corridor (EC) plans include 4 provinces, Papua, West Papua, Malaku and North Maluku.

Figure 2.1. above indicates the delineation of the economic corridor where the area in grey denotesthe locations of planned development and the numberend points indicate the location of KPIs l.

2.2 MP3EI Planning for EC

The objective of economic development in Papua-Kep Maluku Economic Corridor/EC is as a center for Development of Food, Fisheries, Energy, and National Mining.

The planned economic development in Papua Kepulauan Maluku EC are dominated by main economic activities such as Food Agriculture, Copper, Nickel, Oil & Gas and Fishery. Figure 1.1. indicates the location/node where each economic activity is planned, and each is indicated in a specific color. Section 2.2.1 elaborates further on the objectives of the planned development of each of these economic activities.

The agglomeration of economic activities are combined within 10 Zones of Investment Focus (KPI) located extensively within the corridor.

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Overview of MP3EI Planning in the Economic Corridor

The Papua Kepulauan Maluku EC comprises of 7 main economic centers: Sofifi, Ambon, Sorong, Manokwari, Timika, Jayapura and Merauke which are supported by main existing and planned infrastructure developments within the economic corridor.

2.2.1 Main Planned Economic Activities The main planned economic activities in the Papua Kepulauan Maluku EC are predominantly extractive industries in the Food Agriculture, Mining (Copper, Nickel), Oil and Gas and Fisheries sectors. The following sub-sections outlines the key objectives of each planned development.

2.2.1.1 Food Agriculture - MIFEE The Food Agriculture activities in Papua-Kepulauan Maluku Corridor are planned in the locations indicated in green with the objectives to:

• Development of Merakuke Integrated Food Estate and Energy with the total areal of +/- 500,000 ha which consists of 10 clusters of Agricultural Production Centers (KSPP) with short term development priority (2011-2014) to develop clusters I to IV. The planned land use in KSPP consists of agriculture land, settlement area, industry and processing area, general service and infrastructure center area.

• Four KSPP clusters being developed are: Greater Merauke, Kali Kumb, Yeinan, and Bian located in Merauke Regency

• The medium term planned development (2015-2019) as outlined in the MP3EI policy document will be directed at developing areas of agricultural production centers for food crops, horticulture, animal husbandry, plantation and aquaculture in Clusters Okaba, Ilwayab, Tubang and Tabonji.

• The long term planned development (2020-2030) as outlined in the MP3EI policy document will be directed at the establishment of a central production area for food crops, horticulture, animal husbandry, fishery and plantation in Clusters Nakias and Selil.

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Figure 2.2 Area Map of MIFEE in Papua province

2.2.1.2 Copper The Copper activities are planned in the location indicated with yellow node with the objectives to increase production surplus of copper to meet the needs of industry within and outside the country through smelters development in Timika in 2014. Copper mining activities include: pit mining in Mimika, copper smelter and purification in Timika, development of heavy metal (TiO2) processing plant, and development of copper cathode draining in Wetar Maluku.

2.2.1.3 Nickel The nickel activities are planned in the location indicated with grey node, with the objectives to increase the activities of nickel mining investment that meets environmental and social aspects, with main development area in Weda, Halmahera Tengah Regency, North Maluku. Activities in nickel mining include: development of nickel and cobalt smelter and development of ferro-nickel plant, development of nickel processing, and development of ferro-nickel plant.

2.2.1.4 Oil and Gas Oil and gas activities in the Papua-Kepulauan Maluku corridor are planned in the location indicated with blue node, with the objectives to optimize the oil and gas production on the main petroleum reserves in Sorong, West Coast Block Sarmi, Semai and gas reserves around Teluk Bintuni.

2.2.1.5 Fisheries Fishery activities in Papua-Kepulauan Maluku corridor are planned in the locations indicated in purple, with the objectives to determine Maluku as designated area of National Fish Reserves

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Overview of MP3EI Planning in the Economic Corridor

and developing Morotai Mega Minapolitan, fishery-related activity in West Papua and Papua based on each existing potential conditions.

2.2.2 Main Policies and Regulations In order to achieve the objective of the economic development in Papua-Kepulauan Maluku EC, several policies, regulations and infrastructures are planned according to each economic activity. Several planned regulations are aimed to enhance the implementation of MP3EI projects development (i.e. release of designated forest land into food estate areas, increased oil and gas exploration and exploitation to increase production reserves, improve land use regulations etc) while others are dedicated to control and manage the economic activities (i.e. ensure allocation of mining zones for Papua Province Spatial Plan, etc).

Additonally, the planned infrastructures are focused on maintaining and improving the supporting infrastructure for EC Plans implementation (i.e. Development of access roads from the Copper Industrial Area to the Timika Port, development of roads and bridges in each Agriculture Production Center Cluster [KSPP], Construction of a Hydroelectric Powerplant in Urumuka, etc). The planned policy/regulation and infrastructure can be seen in Appendix A.

2.2.3 Zones of Investment Focus (KPI) There are 10 Zones of Investment Focus (KPI) in Papua-Kepulauan Maluku EC. The KPIs represent the main economic activities in each EC and are a combination of a number of production centers/investment activities which agglomerate at some adjacent geopraphical location. To determine a KPI, the selection criteria are based on the total investment value on each KPI (the most significant), Government and local government support towards the production centers where each KPI located, suitability to the strategic interests (social, economy and political impact) and directives from the Government. The list of KPI with the allocation and main infrastructure in the economic corridor can be seen in Figure 2.3 below.

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Figure 2.3 List of KPI with its economic development in Papua-Kepulauan Maluku EC

2.2.4 Main Planned Infrastructure To support the economic activities in each KPI, main infrastructure are planned for the time- frame of 2011-2014. The key infrastructure development in Papua-Kepulauan Maluku EC includes:

• Road development at Merauke-Muting-Waropko, Timika-enarotali-nabire and road improvement from Maruni to Bintuni,

• Airport development in Jayapura,

• Port development in Merauke and Seget, Porong in West Papua, *

• Jailolo power plant, and

• Hydro Powerplant development in Urumuka.

The major planned infrastructure in the EC can be seen in the following figure.

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Overview of MP3EI Planning in the Economic Corridor

Figure 2.4 Main planned Infrastructure in Papua-Kepulauan Maluku EC

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2.3 Overview of Autonomous Provincial Planning

Along with the MP3EI planned development in Papua-Kepulauan Maluku EC, it also important to acknowledge the information regarding autonomous provincial plans such as RPJPD (Long Term Regional Development Plans), RPJMD (Mid Term Regional Development Plans) and RTRWP (Provincial Spatial Plans). Considering the key components and priorities of these provincial plans in the EC in further SEA analyses will help to identify the likely conflict potential between the MP3EI planning within the corridor and the provincial planning, which have been finalised and ready to be implemented.

To provide a clearer understanding, the overview of autonomous provincial planning status is inidcated for each province by highlighting the status and key information on the plans relevant to the MP3EI planned development.

2.3.1 Papua Provincial Planning The Provincial Government of Papua has completed a final draft of RPJPD for 2005-2025, but this long-term provincial development plan has not been approved by the provincial legislative body and the document remains as a final draft,. The final draft of RTRW for 2013-2033 has been completed and reviewed by all relevant institutions. It is understood that the final draft will be officially approved by the end of 2013. The final draft RTRW is available. The current RPJMD expires this year and the new RPJMD for 2013-2018 is being prepared, It is not available yet. West Papua Provincial Planning

All major planning documents of the Province of West Papua currently are not yet completed and formalized. Drafts are not available yet.

Where possible and practical, it remains the objective of this project to obtain relevant aspects of this provincial planning for subsequent analysis phases of the SEA

2.3.2 Malaku Provincial Planning The technical document of the RTRW of the Province of Maluku for 2007-2027 is available, but the draft provincial regulation is not available yet. The province’s RPJPD for 2005-2025 was enacted in 2009 through Provincial Regulation No. 2/2009. The current RPJMD of the Province of Maluku sets five-year development plans for the period of 2009-2013. A new RPJMD for 2013-2018 is being prepared but is not available as yet.

2.3.3 North Maluku Provincial Planning The RPJPD was formalized through Provincial Government Regulation No. 3/2008 and the RPJPD is effective for the period of 2005-2025. The current RPJMD is due to expire in 2013 and the new RPJMD for 2014-2018 is currently being prepared. The RTRW of the Province of North Maluku was completed and legalized through Provincial Regulation No. 2/2013. It contains the province’s plan for infrastructure, land-use, and strategic area development plans, for the period of 2013-2033. In addition, the RTRW describes the proposed first five-year projects.

2.4 Overview of major ongoing/to-be-implemented projects

For all of the four provinces in the EC, the provincial governments are currently developing their medium-term development plans for the period of 2013-2018 or 2014-2019, and drafts are not available yet. Of all the provinces, only the Province of North Maluku has completed and formalized its spatial plan through a provincial regulation (Perda), namely Perda No. 3/2008.

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Overview of MP3EI Planning in the Economic Corridor

From the initial review of the Spatial Plan of the Province of North Maluku and limited information regarding the up-coming 2014-2019 RPJMD, there are a number of major infrastructure projects, as follows:

2.4.1 The Provinces of Papua and West Papua Materials are not yet available.

2.4.2 The Province of Maluku Materials are not available yet.

2.4.3 Province of North Maluku Referring to presentational materials [http://www.slideshare.net/OswarMungkasa/analisa-isu2- strategis-rpjmd-malut] the nine major programs for the next five years (2014-2019) are as follows:

a. Infrastructure development, including:

- Construction of Ringroad in the southern part of Halmahera (237 km)

- Development of National-level Seaport in Sofifi (Provincial Capital)

- Development of Seaport in Morotai in support to the concept of integrated fishery industry (Megaminapolitan), KEK Mortai

- Development of New Airport in Sofifi

b. Human resource development

c. Poverty eradication

d. Creating enabling conditions for investment and entrepreneurship

e. Food security

f. Bureaucracy reform and good governance

g. Sustainable management of energy, water, mineral, and environmental resources and mitigation of disasters

h. Management of border, under-developed, outer, and remote areas; and

i. Development of tourism, culture, creativity, innovations, and technology.

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Summary of Relevant Baseline Features

3 Summary of Relevant Baseline Features

3.1 Environmental Quality

3.1.1 Water

River Pollution The State of the Environment Report (2007) published by the Ministry of Environment (KLH 2007) reports on the river water quality from the monitoring results at 30 rivers in Indonesia according to the determination of River Water Quality status refers to Decree of State Minister of Environment No 115/2003 regarding Guidelines for Determination of Water Quality Status and also to refer to criteria of water quality Class I and II under Government Regulation No 82/2001:

For Water Quality Class I, the water can be used for raw drinking water supply and other uses that require similar water quality. Water Quality Class II, the water can be used for recreational facilities, freshwater aquaculture, livestock, irrigation and other uses that require similar water quality. Water Quality Class III, the water can be used for breeding freshwater fish, livestock, irrigation and other uses that require similar water quality. Class IV, the water can be used for irrigation and other uses that require similar water quality.

Monitoring results of 33 rivers across Indonesia indicated that water quality ranged from lightly polluted to heavily polluted. For the Papua Kepulauan Maluku EC, in Papua, the Anafre River in Papua was regarded as lightly polluted to heavily polluted as compared to Class I water quality criteria.

Table 3.1 Water Quality Monitoring Results in Papua

ASEAN water quality standard Marine Water Parameter Threshold Description Quality Criteria for ASEAN (for Human Health Protection) 23 out of 33 river sampling points TSS >50mg/L < 80 mg/L exceeded the threshold level 27 out of 31 river sampling points BOD > 2mg/L 20 mg/L exceeded the threshold level 27 out of 31 river sampling points COD >10mg/l - exceeded the threshold level Below 4mg/L (for Class I) 4 mg/L 23 out of 33 river sampling points DO Below 6mg/L (for were less than the threshold level Class II) All river sampling points are within pH 6-9 - the threshold limit Cobalt exceeded the threshold limit at Sungai Wariori, Sungai Heavy Besar, upstream and downstream metals - - of Sungai Sukun (Kecamatan Cobalt/ Kaimana) Iron Iron exceeded the threshold limit at Sungai Wariori (Kabupaten Fak-

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ASEAN water quality standard Marine Water Parameter Threshold Description Quality Criteria for ASEAN (for Human Health Protection) Fak), Sungai Muturi, downstream of Sungai Maruni, Sungai Sukun (Kabupaten Kaimana), Sungai Besar, Sungai Wondama, Sungai Wasari, Sungai Besar, Sungai Remu and Sungai Wanayo

Source: Indonesian Government Regulation of Republic Indonesia No. 82 year 2001 on Water Quality Management and Water Pollution Control

In Maluku, the Batu Gajah river in Maluku and the Anafre river in Papua were regarded as lightly polluted to heavily polluted as compared to Class I water quality criteria while the Batu Merah river in Maluku and the Tabobo river in North Maluku were regarded as polluted to heavily polluted (State of Environment 2007). According to SLHE Maluku (2011), the river water quality data in Maluku is still limited and only 2 rivers were monitored by BLH Maluku province; Sungai Batu Merah in Kota Ambon and Sungai Eti on the western side of Kabupaten Seram.

Table 3.2 Water Quality Monitoring Results in Maluku

ASEAN Water quality standard Marine Water Parameter Threshold Quality Criteria for ASEAN Description (for Human Health Protection) The TSS parameter for both rivers TSS > 50mg/L < 80 mg/L met the threshold limit of Class I and Class II BOD > 2mg/L 20 mg/L No Data COD >10mg/l - No Data Below 4mg/L DO levels in sampling points in (for Class I) 4 mg/L DO both rivers were above the Below 6mg/L threshold for both of the rivers. (for Class II) Sampling points at both rivers are pH 6-9 within the threshold limit of, from the regulation PP 82 Year 2001. Heavy metals - - No Data Cobalt/ Iron

Source: Indonesian Government Regulation of Republic Indonesia No. 82 year 2001 on Water Quality Management and Water Pollution Control

As is common across most urban areas in Indonesia, the concentrated use of septic tanks and small scale decentralized sanitation systems or disposal of wastes directly into rivers and canal in medium-small cities is reported to lead to pollution in drains, groundwater and surface water.

Forest concession areas and agricultural plantation areas in Papua/ West Papua are also recorded as having a negative impact on water quality in nearby freshwater river systems and inshore marine waters in Papua/West Papua (WB 2008) although no data is available to substantiate the scale of this issue.

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Degradation of water sources in Papua/ West Papua has been related to mining activities including large scale commercial mining and subsistence or artisanal mining. In Papua for example waste rock from the PT Freeport mine was dumped in a mountain lake near the pit and leading to release of significant acid rock drainage. However, Freeport has recently taken strong measures to reduce and neutralize the Acid rock drainage (ARD) by building a new plant to treat and recycle acid water, and eventually will drain the lake and treat the soil (WB 2001). Artisinal mining of gold in Papua had reportedly led to elevated mercury contamination in rivers as well as deaths of miners due to landslides (GRM 2009).

Coastal Water Quality Studies of coastal water quality in Papua are limited to scientific research studies which are not widely published. Some data from a study by Tarigan and Rozak (2003) in the Membrano Estuary of Teluk Cendrawasih, noted that the concentration of lead, cadmium, copper, zinc and nickel content in seawater and sediment was still within the threshold limit set by Ministry of Environment /Kementerian KLH 1988 for fishery production. Similarly, in Maluku levels of heavy metals in the marine water around Pulau Halmahera (North Maluku) showed that the concentrations of lead, cadmium, copper, zinc and nickel were within the threshold limit set by Ministry of Environment/Kantor Menteri Negara Lingkungan Hidup, KMNLH, 2004 (SLHE Maluku, 2011).

Disposal of mining waste materials is also regarded to represent the largest direct threat to local ecosystems is the (Filer 2007) when tailings and other waste materials are often dumped into rivers and coastal areas leading to coral mortality, sedimentation and dieback (Filer 2007). Even small-scale illegal mining operations can also threaten the health of river systems, humans and wildlife, especially when mercury is used (NORAD 2009).

3.1.2 Air and Climate

Urban Air Pollution Air quality monitoring data reported for a number of locations across Papua and West Papua indicate low levels of dust, NO2 and Ozone (SLHE Papua 2011). Similarly, for Maluku air quality monitoring reported in the SLHE Maluku 2011 indicated low levels of the dust, NO2 and Ozone as compared to national standards.

Forest Fires The 2012 Indicators of Sustainability report (BPS 2012) noted that no forest fire hot spots were recorded in the provinces in the EC in 2010 indicating that this is not a major issue affecting air quality in the provinces in the EC.

GHG Emissions In Indonesia, deforestation and land-use changes are estimated to account for 83% of Indonesia's carbon emissions and 6% of global greenhouse gas emissions (PEACE, 2007). Carbon emissions released from the logging, burning and conversion of Indonesia's forests and peatlands have helped make Indonesia the world's fourth largest greenhouse gas polluter after the USA, European Union and China.

Sources of GHG emissions in Papua are reported to be forestry and peat land, agriculture, industry, energy, transportation and infrastructure while in Maluku, sources of GHG emissions are reported to be industry, energy, transportation and infrastructure sectors. The national action plan for the reduction of greenhouse gas emission in Papua and Maluku is still being developed (Sekretariat RAN-GRK_Maluku (2012)).

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3.1.3 Land Use and Soil Approximately 15% of the land area of Papua is considered non forested consisting of bare ground, rice paddies and transmigration settlements (Marshall 2007 cited in NORAD 2009) (Table 3.3).

Table 3.3 Land Use of Papua

% of total Land class Area (km2) land Lowland forest 213, 627 51.3 Lower Montane forest 8.658 2.1 Upper Montane forest 27,373 6.6 Subalpine forest 4,226 1 Brush 4,490 1.1 Savannah 9,208 2.2 Mangrove 15,124 3.81 Total forest area 351, 147 84.4 Bare ground, rice paddies, transmigration settlements 64,982 15.6 Total land area 416,129 100

Agricultural Estates According to the World Bank 2008, oil palm plantations in Papua province in 2005 totalled around 50,000ha mostly located in the north-east, near the city of Jayapura, and in the south east, near the Papua New Guinea border. This area increased from 11,367 hectares in 2001. Agricultural activity in Papua was reported to account for 75% of the workforce while only generating about 10.4% of the GRDP, due to low productivity (UNDP, 2005 cited in WB 2008).

Other Agricultural Crops Aside from oil palm, agricultural commodities produced in Papua on a commercial basis include rice, corn, cassava, potato, soybean, peanuts, vegetables, and fruits while cash crops produced include coconuts, nutmeg, cacao, oil palm, cloves, coffee, rubber and cashews.

According to the World Bank (2008), for most poor people in Papua, arable agriculture provides the basis of their livelihood and many crops are also produced on a subsistence basis to supplement the forest products. Subsistence crops include tuber crops, such as sweet potatos, cassava, yams and taro and sago, banana, green vegetables and other horticultural produce supplemented by hunting, fishing and gathering (World Bank 2008).

Transmigration and other developments have led to many changes in agricultural practices over the past few decades (i.e. cultivation of rice and cash crops such as coffee, cacao, cloves, coconuts, and walnuts) (World Bank 2008).

Settlement areas According to the World Bank 350,883 ha of land have been allocated for transmigration programs primarily in the southern districts of Merauke (156,337 ha), Mimika (62,712 ha), and the northern district of Keerom (43,172 ha) (World Bank 2008).

Soil According to a study by the World Bank (2009), a large proportion of Papua and West Papua may be unable to generate sustainable income if forests are removed due to their steeply sloping highland areas covered by thin young soils as well as marshy lowland areas with peat soils will beunlikely to support sustainable economicuse.

Most of the domestic and industrial wastes in Papua and Maluku are dumped into the landfills, incinerated, buried or dumped into open spaces, rivers or drainages (SLHE Papua 2011 and

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SLHE Maluku 2011). The table below quantified the waste disposal alternatives based on the percentage of households in Maluku on 2007.

Table 3.4 Waste disposal alternatives in Maluku (2007)

Discharged Sent to Discarded Province Buried Burnt to Others landfills carelessly drainages Maluku 9.34% 25.90% 47.80% 16.91% 16.67% 38.51% North Maluku 11.49% 15.73% 47.15% 11.92% 38.22% 30.18%

Types of hazardous and toxic waste that are common soil pollutants in Papua are oil residues, batteries residues, mercury and cyanide resulting from mining activities especially the gold minings. One of the main problems associated with mining is the illegal gold mining activities or known as PETI (Pertambangan emas tanpa izin), which pollute the soil without taking any responsibilites (Papua SLHE, 2011).

3.2 Ecosystems

3.2.1 Biodiversity

Terrestrial

All four provinces in the EC form part of the Wallacea biodiversity hotspot which encompasses the central islands of Indonesia, east of Java, Bali, and Borneo and west of the island of New Guinea, and the whole of the country Timor-Leste. This area includes Sulawesi the Moluccas, Timor-Leste, and Nusa Tenggara. Biodiversity and endemism is especially high in Wallacea, due largely to it being tropical and made up of many islands, as well as due to its complex geological history having separated from mainland Asia around 200 million years ago which contributed to their isolation and the evolution of many unique species (CEPF 2012).

Papua and West Papua are characterized by extremely high biodiversity which not only have high species diversity but also extensive ecosystem diversities. Studies of the forests of Papua and West Papua provinces indicate that they account for for almost 50% of the biodiversity that places Indonesia among the world’s most biodiverse countries (NORAD 2009). The type of ecosystems found in Papua extend from coral reef ecosystems, seagass ecosystems, mangroves, estuaries, intertidal areas of the sea area to the lowland rainforests, highland rainforests, montane forests, rivers, lakes and grasslands of the mountain areas (NORAD, 2009).

Of the different faunal taxa for example, more than 600 species of birds are found in these forests, over 180 species of mammals, 150 species of frogs; over 61 species of snakes and 141 species of lizards, at least 100,000 species of insects (Beehler 2007). In , 74 out of 403 species of bird recorded in the area are endemic to the region (SLHE Papua, 2011). In terms of floral biodiversity, Papua and West Papua are home to 20,000-25,000 species of plants (Collins et al.,1991) and about 90% of the woody plants are endemic to this region. About 80-90% of the national protected areas are still covered with primary rainforest and other pristine ecosystems (SLHE Papua, 2011).

Similarly in Maluku, 14 out of 80 mammal species are endemic as are 41 out of 511 reptile species and 90 out of 450 bird species. Similarly, the Maluku islands includes 2 terrestrial ecoregions of particular importance for biodiversity, the Seram rain forests; and Halmahera rain forests. The Seram rainforest areas are reported to provide habitat to over 200 bird species of which 16 are endemic including the two-wattled cassowary. The Halmahera rain forests also

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have a high number of endemic species, with 6 of its 38 mammal species regarded as endemic, including the Bisa rat, masked flying fox, and 3 species of cuscus (WWF 2013).

In Papua-West Papua, around 20% of the total land area is designated as Conservation and protection forests a percentage which is greater than any other province in Indonesia. There are 42 nationally protected areas in Papua and West Papua which include 12 nature reserve (cagar alam), 22 wildlife sanctuary (suaka margasatwa), 2 national parks (taman nasional), 1 marine national park (taman laut nasional), 3 recreational parks (taman wisata alam) and 3 marine recreational parks (taman wisata alam laut) (SLHE Papua, 2011).

National parks in the EC include: the 2,505,600 ha (also a World Heritage Site), 2,018,000 ha Mamberamo Foja Wildlife Sancturary, 1,453,500 ha Teluk Cendrawasih and 413,810 ha Wasur National Park. Nature reserves include: 124,850 ha Teluk Bintuni Nature Reserve, Tamrau Utara, Tamrau Selatan and Arfak in the Bird’s head Peninsula, Mamberamo and Rouffaer in the northern lowlands and a number of minor reserves in the Raja Ampat Archipelago and the northwestern part of Biak island in Supiori World Bank 2008, (NORAD 2009, SLHE Papua, 2011).

Areas of forest in Papua designated for conservation are not evenly distributed with some districts e.g Pegunungan Bintang, Tolikara and Pegunungan Bintang having a large amount (78- 90%) of their land designated for conservation or protection while others have a very small proportion protected (GRM 2009). In addition, the location of conservation forests has been limited mostly to areas of no agricultural value. For example around 40% of Papua’s lowland forests have been zoned as production forest and only 19% have been zoned as conservation forest. This is a matter of concern because lowland forests support high biodiversity and is also targeted for logging and agriculture. These forests are therefore threatened in the majority of Indonesia and are predicted to disappear in Sumatra and Kalimantan in the near future. Mountain forests and mangrove forests are primarily designated for conservation. Mountain forests are likely to have been designated for conservation because these forests are found on steep slopes and provide watershed functions (GRM 2009/ NORAD 2009).

In Maluku and North Maluku, there are 34 conservation areas in total that include 22 nature reserves (cagar alam), 5 wildlife sanctuaries (suaka margasatwa), 2 national parks (taman nasional) and 5 marine recreational areas (taman wisata laut). Of particular note are the 180,000ha Manusela national park (189,000ha) and 167,300ha Aketajawe – Lolobata national park (SLHE Maluku 2011 both area renowned for their high levels of endemism of the bird and mammals fauna that they protect (SLHE Maluku 2011).

Risks to loss of habitat in the EC are attributed to human population growth and development, most notably related to forestry, expansion of agricultural lands, coastal pollution, and over- fishing.

In the Seram biodiversity areas in Maluka, threats to the ecoregion include logging, tapping of damar trees, and illegal collection of plants and animals. The local commercial wildlife trade, which targets parrots in particular, poses another risk to Seram’s biodiversity. In Halmahera, the eastern forests are threatened by pulp plantations, especially using local transmigrants (WWF 2013).

Impacts on biodiversity due to climate change are likely to result from changes to habitats especially those at high latitudes and altitudes that are in lowland tropical areas. In Papua habitats at particular risk are alpine herbfield habitats which are currently restricted to elevations above 3900 metres, which would lead to the loss of the alpine woolly rat and the worlds largest egg-laying mammal, the long-beaked echidna (Prentice & Hope 2007) (WB 2008).

Marine Marine areas surrounding Papua are part of a global centre of marine biodiversity containing a diverse range of hard corals, mollusks and reef fishes, nesting sites for migratory sea turtles, passages for migrating mammals and mantas, and feeding ground for large populations of tuna

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(NORAD 2009). Marine protected areas in the EC include: Raja Ampat Marine National Park (located in Papua Barat, 80,226.55ha) and the Teluk Cendrawasih National Park (SLHE Papua, 2011). According to the research from Marine RAP and rapid environment assessment from CI, TNC and WWF in year 2001 to 2002, there are about 537 species of coral reefs from 76 genus and 19 families representing about 75% of coral species found in the world (SLHE Papua, 2011).

Several protected marine species found in Maluku and Papua region from SLHE Papua (2011), SLHE Maluku (2011) and RTRW Papua Barat (2009).

Table 3.5 Protected Marine Species in Papua and Maluku

No Local Name English name Latin name 1 Triton terompet Triton's trumpet Charonia tritonis 2 Kima raksasa Giant clam Tridacna gigas 3 Kima besar Maxima clam Tridacna maxima 4 Kima tapak kuda Horse's hoof clam Hippopus hippopus 5 Kima lubang Boring clam Tridacna crocea 6 Kima Kepala Kambing Horned helmet Cassis Cornuta 7 Lola Topshell Trochus Niloticus 8 Batu Laga Marbled turban Turbo Marmoratus 9 Penyu sisik Hawksbill sea turtle Eretmochelys imbricata 10 Penyu hijau Green sea turtle Chelonia mydas 11 Penyu lekang Olive ridley sea turtle Lepidochelys olivacea 12 Penyu belimbing Leatherback sea turtle Dermochelys coriacea 13 Duyung Dugong Dugong dugon 14 Paus biru Blue whale Balaenoptera musculus Megaptera 15 Paus bongkok Humpback whale novaeangliae 16 Hiu bodoh Whale shark Rhincodon typus 17 Lumba lumba hidung botol Bottlenose dolphin Tursiops spp.

Reference: SLHE Papua (2011), SLHE Maluku (2011) and RTRW Papua Barat (2009) http://rtrwpapuabarat.info/fakta/anl-laut.php

3.2.2 Forests Estimates of the forest cover of Papua and West Papua by Conservation international in 2000 indicate that roughly 85% of the land area of these two provinces was forested (WB Strategic Assessment 2008). Due to the equatorial location and topography of these 2 provinces, forest types cover the full range of tropical forests from lowland to alpine, and freshwater and peat swamp to mangrove. The majority (more than 60 %) of the forests found to be lowland rain forests, 10% montane forests, lowlands swamp ecosystems 20% and mangroves around 4%. (NORAD 2009).

A more recent data set from the MIH Mapping Program (2010), (SLHE Papua 2011), below provides a more recent breakdown of land use across the 2 provinces as follows indicating that the landcover of Papua is 41.7 mill ha with 90% of the land (37.5mill ha) was still covered by forests. The percentage of landcover is stated as below:

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Table 3.6 Land Cover of Papua according to MIH Mapping Program (2010) and SLHE Papua (2011)

No Land cover Area (ha) Percentage (%) 1 Primary forest 20,737,891 49.40% 2 Secondary forest 11,833,193 28.19% 3 Mixed farms 364,073 0.87% 4 Mangrove 1,065,900 2.54% 5 Plantation 637,720 1.52% 6 Urban area 76,573 0.18% 7 Marshland 3,044,295 7.25% 8 Paddy field 19,040 0.05% 9 Bush/scrub 1,060,474 2.53% 10 Aquaculture pond 1,427 0.00% 11 Bareland 1,707,520 4.07% 12 Farm 379,411 0.90% 13 Water body 928,162 2.21% 14 Others 121,838 0.29% Total 41,977,517 100.00%

Papua's forests are divided into four categories: production, protection, conservation, and conversion forests. Production forests are primarily set aside for logging and conversion forests are set aside for agricultural development, settlements or other land uses. Conservation and protection forests (discussed in S3.2.1) are set aside to conserve biodiversity while protection forests are supposed to be allocated to protect steep slopes, watershed functions and environmental service, such as carbon storage (WB Strategic Assessment 2008). Within these categories 25% of Papua's forest estate is designated as production forest, 20% of Papua's forest estate has been designated for conservation and protection, and 20% of Papua's forest estate (6.6 million ha) is slated for conversion (WB 2008).

More recent figures from the Ministry of Forestry allocate the forests as 23% (9.7mill ha) of conservation forest area, 25% (10.6mill ha) of protected forest area and 52% (21.9mill ha) of production forest area. The production forest area is subcategorized into limited production forest area (2 mill ha), production forest area (10.5mill ha), and convertible production forest area (9.2mill ha) (SLHE Papua 2011).

Forests in Papua managed as Production Forest (HPH concessions) can be managed as concessions for selective logging or clear-felled and replaced with forestry plantations of rapid- growing wood to feed pulp mills. On the steepest terrain, in Limited Production Forest areas more restrictions apply such as a higher minimum allowable diameter of timber felled (NORAD 2009). According to the WB (2008), 57% of Papua's production forests have been allocated to around 38 large-scale timber concessions which cover over 9.2 million hectares of land. Logging concessions primarily fall within the northern districts of Sarmi (1.3 million ha), Nabire (327,456 ha), Waropen (427,225 ha) and Keerom (364,350 ha); and the southern districts of Mimika (675,156 ha), Asmat (654,831 ha), Boven Digoel (2.1 million ha) and Mappi (439,775ha).

According to the World Bank (2008), more than 3 million ha were allocated to 13 companies for industrial timber plantations predominantly in the southeast of Papua. Of this total, 150,507 ha of land have been allocated to industrial timber plantations to date in Papua and West Papua provinces in the southern districts of: Merauke (112,351 ha), Mappi (23,802 ha), Boven Digoel (6,425 ha) and Kaimana (7,925 ha). Anecdotal data suggests that a much greater area remains allocated to this purpose (NORAD 2009).

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Although according to Indonesian government regulations, industrial timber plantations are supposed to only be established on degraded land, in reality plantations are reported to often replace natural forest. This is considered by NORAD (2009) to have been the case in Papua due to the policy of the Ministry of Forestry of granting special land allocation criteria to allow areas with high timber stocking densities to be converted to industrial timber plantations (NORAD 2009).

Similarly conflicts have been reported to occur between issuance of new exploitation permits for primary forests for oil palm plantations in Papua, with the final Moratorium map reported to have been tampered with by removing the protected forest zone to accomodate the new concession plan (Greenomics, 2013).

According to the WB (2008) many timber concessions in Papua have become inactive in recent years and timber production obtained from these concessions has consequently declined. This was due in part to increasing conflicts between logging concessionaires and local communities, as the communities began to assert their rights to forest resources after the fall of the Soeharto Regime (NORAD 2009). To address these issues the provincial government is moving towards more community based forestry models of smaller areas (up to 1000ha) which allow local people to benefit from logging (WB 2008). According to Anggraeni (2007) this policy was extensively abused, leading to widespread timber extraction. To address this issue, the Ministry of Forestry released a regulation (PP 6/2007) that clearly stated that only the Ministry of Forestry could issue licenses to fell timber for commercial sale and the Provincial government ceased issuing small-scale logging licenses shortly afterwards (NORAD 2009).

Conversion Forest constitutes forests which can be clear-felled and replaced with agriculture or oil-palm plantations. Forestry policies for timber plantations indicate that these are not to be located in conversion forest, which are meant for agricultural including plantation development, NORAD 2009.

In Maluku, according to the MIH Mapping Program (2010), the total landcover of Maluku is 7.8mill ha with the details as stated below:

Table 3.7 Land Cover of Maluku in 2010 according to MIH Mapping Program

No Land cover Area (ha) Percentage (%) 1 Primary forest 2,874,010 36.69% 2 Secondary forest 2,435,563 31.09% 3 Mixed farms 778,483 9.94% 4 Mangrove 223,950 2.86% 5 Plantation 83,864 1.07% 6 Urban area 126,960 1.62% 7 Marshland 52,045 0.66% 8 Paddy field 11,093 0.14% 9 Bush/scrub 540,858 6.90% 10 Aquaculture pond 936 0.01% 11 Bareland 264,464 3.38% 12 Farm 343,435 4.38% 13 Water body 97,287 1.24% 14 Others 1,302 0.02% Total 7,834,250 100.00%

Overall findings of a study conducted by South Dakota State University's Geographic Information Science Centre of Excellence in partnership with the Indonesian Ministry of Forestry,

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the World Resources Institute, SEKALA and the United States Geological Survey using modis satellite imagery analysis revealed that deforestation in Papua over the last decade (1997-2008) was just 1% of the national total (WB 2008). This study noted that Papua’s forest have just become threatened by a range of factors: logging, oil palm, industrial timber plantations, mining etc (WB 2008). More recent reports by the Ministry of Forestry indicate that rate of deforestation has increased with the highest deforestation rate in Papua occurs in the production forest area, that reach up to 15,524.3 ha/year of land being converted since 2006-2009. Deforestation also occur in the conservation forest area (5,968.6 ha/year) and protected forest area (10,038.1 ha/year) throughout the period of 2006-2009 (SLHE Papua, 2011).

Comparison of land cover area in Maluku between 2007 and 2010 (SLHE Maluku, 2011) showed that from year 2007 to 2010, the area of primary forest was reduced from 4,773,444ha to 2,874,010ha, while secondary forest increased from 989,701ha to 2,435,563ha.

Table 3.8 Land Cover of Maluku in 2007 & 2010 according to SLHE Maluku (2011)

Area (ha) No Land cover Year 2007 Year 2010 1 Primary forest 4,773,444 2,874,010 2 Secondary forest 989,701 2,435,563 3 Mixed farms 778,483

4 Mangrove 110,281 223,950 5 Plantation 83,864

6 Urban area 126,632 126,960 7 Marshland 332,364 52,045 8 Paddy field 11,093

9 Bush/scrub 224,104 540,858 10 Aquaculture pond 936

11 Bareland 286,250 264,464 12 Farm 343,435

13 Water body 196,766 97,287 14 Others 794,708 1,302

In Papua, according to a study by the UNDP (2005) in 2002 alone, illegal logging in Papua resulted in an estimated Rp 558.8 billion (roughly US $ 60 million) in lost state income, which could have been used vital public service. In 2003 and for coming years, such losses were estimated at Rp 2.142 trillion per annum (roughly US $ 230 million, based on data of Rp 178.5 billion per month). This study quotes an example of illegal logging in Kampong Malaswat, Kecamatan Seremuk, Kabupaten Sorong Selatan, in West Papua where the Bureau of Natural Resources Conservation (BKSDA), investigated just one case involving 1,500 cubic metres of Merbau with total valued Rp 1.2 billion (GRM 2009).

No information on illegal logging in Maluku was available.

Drivers of deforestation in Papua include unregulated logging activities and conversion for agriculture and mining. Unregulated logging is considered to be a driver of deforestion where rules for selective logging are not enforced and logging exceeds the limits of sustainability due to inadequate technical oversight (NORAD 2009). Due to increasing conflicts regardingujthe rights of local communities, many of the logging concessions in the province are reported to be inactive resulting in an overall low contribution of concession logging has therefore until now had a relatively small impact on Papua’s forests, except where it has been part of conversion to other uses. Illegal logging in Papua is considered to have strong potential to lead to

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deforestation in the local areas affected but this issue was largely addressed by changes to the Kopermas system, implemented by the Ministry of Forestry (NORAD 2009).

A major additional driver of deforestation in Papua in the future is likely to be the substitution of natural forest by timber plantations to support the development of a pulp and paper industry as have occured in other parts of Indonesia (NORAD 2009). Similarly, the expansion of oil palm plantations is noted as a priority of the Central government and the Government of Papua with a study by Casson et al. (2007), noting that Indonesia is expected to establish another 5.6 million hectares of oil palm over the next 13 years (2007-2020). The major areas for expansion cited are Sumatra and Kalimantan followed by Papua. Within Papua different areas are cited as being slated for oil palm development in the future. The WB 2008 study for example notes that another 500,000 ha of land has been aloocated for oil palm while also noting that the provincial governor has declared that 3 million hectares of land is being set aside for oil palm plantations with the aim of making Papua the largest palm oil producer among the provinces of Indonesia (Kompas, 12 May 2003). The study by NORAD (2009) notes that the Indonesian Government’s Investment Coordination Board (BKPM). indicated that the total area of land made available for oil palm plantations in Papua Province was 1,935,000 ha, with 1,500,000 ha located in the three south eastern kabupaten of Merauke, Mappi, and Bovendigul, 90,000ha in Jayapura stood for 90,000 ha and 100,000 ha in Keerom. Two districts in the Central Highlands – Paniai and Puncakjaya – were listed with 60,000 and 100,000 ha of available land, respectively.The WB study notes that most of the allocated lands slated for conversion to oil palm in Papua province are covered with primary lowland forests and evidence from other parts of Indonesia suggest that proposals for plantation development have sometimes been a pretext for timber companies to clear-fell forests and then abandon land.

The Papuan provincial government and a number of districts have prioritized watershed management to ensure a sustainable water supply for growing cities, such as Merauke district. The rapidly developing town of Merauke suffers major water shortages in the dry season and relies for its water on one of the few permanent swamps in the region (Rawa Biru swamp located in Wasur National Park). This catchment is critically important from a biodiversity perspective because it provides habitat for tens of thousands of water birds, fish and other animals. Of special note are the 36 species of rainbow fish that inhabit Papua's freshwater rivers. The area is also important for migratory birds from Australia (WB 2008).

Mining is noted by NORAD (2009) to result in deforestation where it brings with it extensive road construction and other development. In their report they cite the case of the Freeport mine where large urban and road developments have stimulated the opening up of surrounding areas to oil palm developers, logging and industrial timber plantations (Paull et. al. 2006 cited in NORAD 2009). The impacts of mining on Papua’s forests are expected to increase dramatically in the future with a study by SEKALA for example indicating that around 6.2 million hectares of forest land have been allocated to mining companies in the province of Papua alone. Another 13.4 million hectares of forest land has been allocated for exploration. The majority of this land (62%) falls within protected and conservation forest. Almost 19 percent of mining concessions are located within mountain forest area, and more than 64 percent of mining concessions are within lowland forest)(WB 2008).

3.2.3 Freshwater Wetlands/ Peat Forests Information from the Ministry of Public Work /Pusat Komunikasi Publik, Departemen Pekerjaan Umum (2007) (SLHE Papua) stated that Papua has 168 wetlands covering 9,865,842 ha as shown in the following table:

Table 3.9 Wetland distribution in Papua (2007)

No of Type Total area Area utilised Area not utilised wetland Tidal wetland 1 4,216,950.00 8,655.00 4,208,295.00

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No of Type Total area Area utilised Area not utilised wetland Freshwater wetland 83 715,971.00 44,402.00 671,569.00 Other wetland 84 4,932,921.00 53,057.00 4,879,864.00 Total 168 9,865,842.00 106,114.00 9,759,728.00

In Papua Ecoregion, almost 95% of the tidal wetland area is located in Merauke district.

No information is available about wetlands in Maluku.

3.2.4 Forests of Community Livelihood Importance In Papua Maluku EC much of the land area is considered to be the customary or adat land claimed by local tribes and clans who have a close spiritual connection with the forest, respecting and utilizing the forest’s resources in their daily life. They apply sustainable forest management by dividing their forests into the sections for farming, hunting, prohibited zone and other restricted areas such as conservation area, water resource area, and slope areas to avoid landslides.

In 2000, Papua received its autonomy rights to allow the forests to be managed by their indigenous people that owned the ulayat right (Hak Ulayat) as mandated by Undang-Undang No. 21/2001 on Special Autonomy for Papua Province, which is also described in Pasal 67 ayat 1 UU No 41/1999 of Forestry. This law provides an opportunity for the indigenous people to exercise their rights to manage and obtain the forest products. This law also authorized the district government to manage the forest resources of the region, including the indigenous forest and state forest (CIFOR, 2005). However, until now conflicts still arise between the indigenous community, developers and regional governments regarding the rights on the forest resources.

3.2.5 Coastal Areas

Coral reefs Papua's seas are located in the heart of the Coral Triangle-- which spans Eastern Indonesia, parts of Malaysia, the Philippines, Papua New Guinea, Timor Leste and the Solomon Islands. The Coral Triangle is the global center of marine biodiversity and one of the world's top priorities for marine conservation (WB 2008). The Coral Triangle includes various important nesting sites for migratory sea turtles, the channels between major land masses serve as passages for migrating mammals and mantas, and the waters support feeding grounds for large tuna populations that are targeted by international fishing fleets (WB 2008).

Marine conservation is more important for West Papua than Papua province because the marine reef environments found in Cenderawsih Bay and the Raja Ampat Islands are among the very richest on earth in terms of species diversity. Extraordinary numbers of hard corals, mollusks and reef fishes can be found in this area. These environments are also very productive, and form an important sustainable resource for local communities. The region also supports a significant pelagic fishery, with key migratory species (WB 2008).

The total area of coral reefs in Papua and Papua Barat is estimated to be 416,844.27 ha (Bakosurtanal 2011 in SLHE Papua, 2011) as seen in the following table:

Table 3.10 Coral Reef area in Papua and Papua Barat according to SLHD Papua (2011)

No Kabupaten Area (ha) Percentage (%) 1 Bak Numfor 41,684.43 10.00% 2 Fak-Fak 33,347.54 8.00%

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Summary of Relevant Baseline Features

No Kabupaten Area (ha) Percentage (%) 3 Jayapura 4,168.44 1.00% 4 Kaimana 25,010.66 6.00% 5 Kepulauan Yapen 33,347.54 8.00% 6 Kota Sorong 4,168.44 1.00% 7 Manokwari 25,010.66 6.00% 8 Nabire 16,673.77 4.00% 9 Raja Ampat 162,569.27 39.00% 10 Sarmi 12,505.33 3.00% 11 Sorong 8,336.89 2.00% 12 Supiori 25,010.66 6.00% 13 Teluk Wondana 25,010.66 6.00% Total 416,844.27 100.00%

The condition of coral reefs in Papua based on Marine and Coastal Resources Statistics YearStatistik Sumber Daya Laut dan Pesisir Tahun 2010 (BPS, 2011 in SLHE Papua, 2011) shows that 52% corals are in good condition, 25% corals are in moderate condition and the remaining 23% are in bad condition.

Areas with the best coral conditions are found in Kabupaten Nabire, where Teluk Cenderawasih National Park is located, and areas with good coral condition are located in Kabupaten Kepulauan Yapen, Meanwhile the coral reefs in the worst conditions are found in Kabupaten Bak Numfor (SLHE Papua, 2011).

In Maluku, the Maluku ecoregion itself is an archipelagic region with 90% of the region covered by sea (76,527,200ha) and only 20% covered by land (8,572,800ha). Maluku ecoregion consists of 793 islands and surrounded by rich coral biodiversity.

According to the MIH Mapping Program 2010, the total area of coral reefs in Maluku and North Maluku provinces is 335,947 with 270,692ha in North Maluku and 65,255ha in Maluku (SLHE Maluku, 2011 and SLHD Maluku, 2011).

A breakdown in the area of coral reef in North Maluku according to district is as seen in the following table:

Table 3.11 Coral Reef area in North Maluku Province according to SLHD Maluku (2011)

No Kabupaten Area (ha) Percentage (%) 1 Kota Ternate 1,106 0.41% 2 Kota Tidore Kepulauan 12,979 4.79% 3 Halmahera Barat 21,868 8.08% 4 Halmahera Selatan 73,496 27.15% 5 Halmahera Tengah 16,331 6.03% 6 Halmahera Timur 47,008 17.37% 7 Halmahera Utara 53,962 19.93% 8 Kepulauan Sula 43,942 16.23% Total 270,692 100.00%

A breakdown in the area of coral reef in Maluku according to district is as seen in the following table:

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Table 3.12 Coral Reef area in Maluku Province from SLHD Maluku (2011)

Percentage (%) No Kabupaten Area (ha) Very Good Good Moderate Bad 1 Kota Ambon - - - - - 2 Seram bagian Barat 3,613 - 75% - 25% 3 Maluku Tengah 6,745 - 90% - 10% 4 Seram bagian Timur 16,780 - 99% - 1% 5 Buru 1,306 22% 22% 30% 26% 6 Buru Selatan - - - - - 7 Kepulauan Aru - - - - - 8 Kota Tual & Maluku Tenggara 29,743 12% 18% 41% 29% 9 Maluku Tenggara Barat 3,289 16% 24% 45% 15% 10 Maluku Barat Daya 3,779 - 87% - 13% Total 65,255

Mangroves Indonesia has the largest mangrove cover in the world with its 3.5 million ha. Approximately 35% (1,049,172.69ha) of this area are located the Papua Ecoregion (SLHE Papua 2011). A breakdown of mangrove cover across Papua is provided in the following table:

Table 3.13 Mangrove Cover in Papua according to SLHE Papua (2011)

No Kabupaten Area (ha) Percentage (%) 1 Asmat 48,853.73 4.71% 2 Bak Numfor 3,973.91 0.38% 3 Boven Digoel 75.28 0.01% 4 Fak-Fak 5,082.21 0.49% 5 Jayapura 158.69 0.02% 6 Kaimana 52,914.01 5.11% Kepulauan 7 1,815.49 0.18% Yapen 8 Kota Sorong 1,443.56 0.14% 9 Manokwari 2,102.10 0.20% 10 Mappi 41,288.16 3.98% 11 Merauke 186,388.10 17.98% 12 Mimika 211,263.70 20.38% 13 Nabire 12,329.24 1.19% 14 Raja Ampat 27,940.06 2.70% 15 Sarmi 12,787.75 1.23% 16 Sorong 19,404.89 1.87% Sorong 17 56,727.82 5.47% Selatan 18 Supiori 3,527.12 0.34% 19 Teluk Bintuni 239,784.00 23.14% Teluk 20 2,880.34 0.28% Wondana 21 Waropen 105,684.60 10.20%

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Summary of Relevant Baseline Features

No Kabupaten Area (ha) Percentage (%) Total 1,036,424.76 100.00%

Kabupaten Teluk Bintuni has the highest mangrove cover in Papua.(23.14%), followed by Kabupaten Mimika (20.38%) and Kabupaten Merauke (18%).

According to the 2011 SLHE report, about 4% of mangrove in Papua has been degraded with the highest percentage of degradation occurring in Kabupaten Manokwari (44%). A further 8 kabupaten, including Kabupaten Fak Fak, Kabupaten Kaimana, Kabupaten Raja Ampat, Kabupaten Sorong, Kabupaten Sorong Selatan, Kabupaten Teluk Bintuni, Kabupaten Teluk Wondama and Kabupaten Kota Sorong has less than 10% of degradation SLHE Maluku 2011).

In Maluku, according to MIH Mapping (2010), the mangrove areas in Maluku Ecoregion cover 63,509ha in Maluku province and 63,180ha in North Maluku.

Table 3.14 The area of mangroves in North Malukubroken down across districts

No Kabupaten Area (ha) Percentage (%) 1 Kota Ternate - 0.00% Kota Tidore 2 6,370 10.08% Kepulauan Halmahera 3 3,745 5.93% Barat Halmahera 4 12,550 19.86% Selatan Halmahera 5 11,250 17.81% Tengah Halmahera 6 22,500 35.61% Timur Halmahera 7 4,340 6.87% Utara 8 Kepulauan Sula 2,425 3.84% Total 63,180 100.00%

Table 3.15 The area of mangroves in Maluku broken down across districts

No Kabupaten Area (ha) Percentage cover (%) 1 Kota Ambon - - Seram bagian 2 2,575 92.50% Barat 3 Maluku Tengah 7,057 81.50% Seram bagian 4 19,581 95.00% Timur 5 Buru 4,588 -

6 Buru Selatan 1,600 -

7 Kepulauan Aru - - Kota Tual & 8 Maluku 1,563 93.30% Tenggara Maluku 9 14,474 - Tenggara Barat Maluku Barat 10 12,071 - Daya Total 63,509

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According to Satelit Citra Landsat ETM year 2009, the seagrass distribution in West Papua province covers 621,945.56 ha around the intertidal area of Kabupaten Fak-Fak, Kaimana, Teluk Wondama, Sorong, and Raja Ampat. There are 7 genus and 13 species of seagrass that include the rare species of Thalassodendron ciliatum. Generally the seagrass coverage in West Papua province is still consider good, with 84.78% in good condition and 15.22% in damage condition. The damage is mainly caused by human activities such as deforestation, reclamation, mining exploration that resulted in the increase of sedimentation along the seagrass habitats (SLHE Papua, 2011).

Table 3.16 The area of seagrass beds in Maluku province broken down across districts (SLHD Maluku 2011)

Percentage destroyed No Kabupaten Area (ha) (%) 1 Kota Ambon - - 2 Seram bagian Barat 1,445 13.90%

3 Maluku Tengah 1,879 9.80%

4 Seram bagian Timur 603 11.00% 5 Buru 335 37.80% 6 Buru Selatan - - 7 Kepulauan Aru - - Kota Tual & Maluku 8 - - Tenggara 9 Maluku Tenggara Barat 2,441 25.50% 10 Maluku Barat Daya 5,467 13.80% Total 12,170

Table 3.17 The area of seagrass beds in Papua province broken down across districts (SLHD Provinsi Papua 2009).

No Kabupaten Area (ha) Percentage (%) 1 Fak-Fak 2,335.00 0.38% 2 Kaimana 1,539.00 0.25% 3 Teluk Wondama 1,248.36 0.20% 6 Teluk Bintuni 0.00%

7 Manokwari 28.60 0.00% 8 Sorong 452,000.00 72.68% 9 Sorong Selatan 0.00%

10 Raja Ampat 164,755.00 26.49% 11 Kota Sorong 3.60 0.00% Total 621,909.56 100.00%

Papua's marine and coastal resources are threatened by extractive activities such as logging, the illegal wildlife trade and illegal fishing practices such as shark finning and bomb and cyanide harvesting.

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Summary of Relevant Baseline Features

Figure 3.1 Coral reefs, Seagrass and Mangrove distribution in Papua-Maluku Islands Economic Corridor (BIG, 2013; Ministry of Marine Affairs and Fisheries, 2013 and Ministry of Forestry 2013)

The loss and degradation of mangrove forests in Papua is attributed to commercial logging through clear-felling (NORAD 2009).

The increase in sea surface temperatures as a result of global warming threatens to impact on coral reef ecosystems leading to major coral reef bleaching events within the next 50 years (Prentice & Hope 2007) in WB 2008). Sea level rise associated with climate change is also expected to have a significant impact on all coastal ecosystems in the EC. An increase of 500 mm over 50 years would outstrip the observed growth rate of some corals in Papua for example, which means that low lying coral based islands and atolls would be converted into saline swamps before they are submerged and their sediments are dispersed into the surrounding ocean. Similarly, the areas covered by sea-grass beds, mangrove forests and coastal wetlands would all be reduced substantially by a 500 mm rise in sea levels (Prentice & Hope 2007) (WB 2008).

The fisheries industries of the EC including capture of tuna, crabs, sea cucumbers, pearls and aquarium fish, predominantly oritentated towards export to Japan and Europe. Environmental issues surrounding the fisheries industries surround questions of overfishing of fisheries in the Arafura Sea and the use of destructive fishing practices (including traditional fish poisons, cyanide and explosives). Cyanide in particular is commonly used to capture aquarium fish for export (WB 2008). According to NORAD (2009), the marine resources in the Raja Ampat Islands near Sorong are regarded to be especially vulnerable to negative impacts as they are within reach of vessels from the informal fishing fleet of the nearby islands of the Moluccas.

Marine scientists have also argued that Papua's marine resources cannot withstand significant extraction and are threatened by plans to expand fisheries in the area (Mous et al. 2005). The newly established Ministry of Marine Affairs and Fisheries plans to expand Papua's marine protected areas and to improve management of existing marine conservation areas (WB 2008).

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3.3 Social and Economic Aspects

3.3.1 Human Health

Demographic profile The four provinces in the Papua Kepulauan Maluku EC have a combined population of approximately 6,165,396 (approximately 2.59 % of Indonesian total) and a total land area of almost 494,956 km2 (25.7% of Indonesian total). The EC contains some of the most scarcely inhabited parts of Indonesia including West Papua and Papua with with a population density of 7.84 and 8.88 inhabitants per km2 respectively compared to the national average of 123.45 people per km2. Within Papua/ West Papua there large variation in population density across the different regions of these provinces, relatively high for example in the Central Highlands (9.5 persons per square kilometre), and relatively low in the Southern Lowlands (3.4) and Northern Lowlands at 3,9 when the Jayapura City is excluded (NORAD 2009).

Annual population growth from the year 2000 to 2010 within each province in the EC in the last decade was significantly higher than the national average (1.49%) with Papua recording the highest annualised rate of growth of 5.39%. Population growth has been relatively rapid over the past three decades. Papua and West Papua had less than 1 million people in 1971 but now has about 2.6 million people. However, during that same period, the proportion of indigenous people has fallen from 96% to about 66%. Population growth is primarily attributed to Indonesia's transmigration program under which approximately 75,200 families (almost 300,000 people) have been formally moved to Papua under Indonesia's transmigration program since 1977. Most of these people originally came from Java and Bali (WB 2008).

In Maluku, the population has also grown significantly over recent years from 1,089,565 people in 1971 to 2,571,593 people in 2010 (BPS Online, 2011 in SLHE Maluku, 2011).

Dependency The dependency ratio of the population is the ratio of productive members of the population (those aged between 15 and 65) to those less and 15 years old and greater than 65..The dependency ratio of provinces in the EC ranged from 47.8 and 47.7 in West Papua and Papua to 54.3 and 52.8 in Malulu and North Maluku respectively. These ratios can be compared to the National dependency ratio of 46.

Ethnicity The four provinces in the EC are inhabited by a diverse range of ethnicities and religions. In terms of ethnicity the majority of the population in Papua and West Papua are Papuan and Melanesian with smaller numbers of other ethnic groups from across Indonesia. Within the Papuan ethnic group, Papua exhibits a much greater diversity of ethnicities and cultures than any other Indonesian province as it supports about 250 languages many of which are small and insular, with fewer than 1000 speakers (WB 2008).

This differs from the population makeup in Maluku which also had a large proportion ethnic Melanesian people while North Maluku was dominated by people of the Mollucan ethnic group and migrants from other parts of Indonesia.

Poverty rates According to the 2012 population census, Papua province was the poorest in Indonesia, with (31.11%) of the population classified as poor, compared to the second poorest, West Papua (28.2%), 21.78% in Maluku (3rd poorest) and 8.47% in North Maluku. These percentages compare to the 11.96% of people who were considered poor for Indoneia as a whole (BPS 2012). In Papua, poverty is less severe at the economic centres (Jayapura, Sorong) and in areas that have abundant mineral, oil and gas resources (Fak Fak, Mimika and Kaimana) (World Bank 2008).

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Summary of Relevant Baseline Features

Rural / Urban Distribution The rural population in each of the four provinces in the EC constitute a significant majority ranging from 74% in Papua, 72.9% in N Maluku, 70% in W Papua and 62.1% in Maluku. All four provinces are well above the national average of 56 % (BPS 2010).

Life Expectancy Life expectancy of populations in the EC ranged from 70.5yrs in Papua and 70.3 yrs in West Papua and 70.1 yrs and 69.8 yrs in Maluku and North Maluku respectively. These figures compare to an average life expectancy of 71 years nationally in Indonesia (BPS 2010).

Infant/ Maternal Mortality Provinces in the Papua Kepulauan Maluku EC exhibit some of the worst in national comparison (28.6 and 29.7 infant deaths per 1000 births respectively), while Papua and West Papua (27 and 27.5 respectively) had figures closer to the national average (24.3).

Access to Drinking Water and Sanitation Only 27.45% of households in Papua had access to safe drinking water (2nd lowest in Indonesia after Kalimantan Barat) as compared to 54,02%, 50.74% and 48,86% in Maluku, West Papua and North Maluku respectively. Rates of clean water consumption in all provinces in the EC were significantly lower than thenational rate of 62.7% (BPS 2012).

Similarly in Papua access to improved sanitation was relatively low (31.32%) (lowest in Indonesia) compared to the other provinces in the EC (72.22%, 63.76 and 61.53% in North Maluku, West Papua and Maluku respectively) and the national average (60.63%) (BPS 2012). These results are consistent with an earlier World Bank Infrastructure Report which showed 21% of Papua's population has access to adequate sanitation (World Bank 2007 cited in WB 2008). The overall low access to adequate sanitation in Papua is due to the high proportion of people living in almost inaccessible rural areas (78%) with exceptionally low levels of sanitation (17% cf 40% for rural Indonesia). In urban areas coverage of septic tanks is reported as 57% in Papua, with higher than average coverage in the Provincial capital of Jayapura (70%). The provincial government has not allocated any funds for improving sanitation (WB 2008).

Rates of Malnourishment Papua has one of the highest rates of food insecurity and malnutrition in Indonesia along with NTT province. The second national Food Security and Vulnerability Atlas (FSVA 2009) jointly produced by the Food Security Council of Indonesia and WFP showed that based on the Composite Food Security Index, 16 out of 17 rural districts of Papua were ranked among the top 100 priority districts in the country.

Decreases in food security in Papua have been linked to climatic changes associated with the El Nino Southern Oscillation (ENSO) event of 1997-98 reportedly causing drought and famine, as a result of uncharacteristically low rainfall which seriously disrupted food production (WB 2008). Within Papua the central highlands of Papua is considered to be particularly vulnerable to drought and famine with the 1997-98 famine estimated to result in the deaths of more than 1000 people in this region due to drought-related disease (malaria, respiratory tract infections and diarrhea) exacerbated by malnutrition (WB 2008). Within the central highlands, hard hit districts were districts of Puncak Jaya and Jayawijaya, Jayawijaya district (Ballard, 2000 cited in WB 2008).

Communicable Diseases The prevalence of Malaria in provinces in the EC were generally higher than the national incidence rate (0.87%) with 311,052 (10.98%), 171,321 (22.5%) 51,321 (3.4%) and 38,981 (3.8%) cases reported in Papua, West Papua, Maluku and North Maluku respectively BPS 2010).

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In terms of Pulmonary TB, three of the provinces in the EC, Papua, West Papua and Maluku had incidence rates higher than the national average of 0.13% (0.23%, 0.20% and 0.21%) while rates of TB in North Maluku (0.11%) were lower than the national average.

The number of reported cases of AIDS in Papua was very high at 0.129% (17 times more than the national average) while the prevalence rate in the other provinces in the EC ranged from 0.002, 0.008 and 0,013% in North Maluku, West Papua and Maluku respectively.

Education/ Literacy According to the 2010 population census, in Papua Province 64.08 % of the population aged 15 years and over was considered liiterate compared to 92.41% in West Papua and 96.63% and 96.01% in Maluku and North Maluku respectively. Similarly elementary school enrolement figures for Papua (46%) were significantly lower than those in the other provinces in the EC (57.7%, 64.3.3% and 65.9% for West Papua, North Maluku, and Maluku respectively) and the national average 68.1%). Factors influencing school attendance in Papua are: transportation and access to education centres; a lack of qualified teachers willing to work in isolated regions; a lack of education facilities, especially in isolated regions (WB 2008). The same study noted that the level of education among women is very low, especially in highland regions such as Jayawijaya (Timmer 2007 cited in WB 2008).

3.3.2 Livelihood

Employment rate According to 2010 population census out of the total workforce in all provinces in the EC were above the national average of 93.4% with the highest employment rate in Papua (96.1%) followed by North Maluku (94.5%), Maluku (92.6%) and West Papua (91.1%) (BPS 2012).

Economic Development According to the World Bank (WB 2008), Papua's GRDP was estimated at Rp 22,237,444 million (US$ 2,443 million) in 2005, producing a per capita GRDP of over Rp 11 million (US$ 1,200). This represents the fourth highest level of per capita GRDP of all provinces in Indonesia with only East Kalimantan, Jakarta and Riau reporting higher levels of per capita GRDP (BPS 2006 cited in WB 2008). The growth rate of Papua’s GRDP from 2001 to 2005 was recorded as approximately 10% per annum (WB 2008). Major economic sectors in Papua are mining and agriculture (food crops, forestry, estate crops, animal husbandry and fisheries), which together account for 82% of the GRDP.

The commercial fisheries sector in Papua is also considered to be very significant in economic terms contributing 6.2 % to GDP in Papua in 2002, which was higher than the forestry sector’s estimated contribution in that year. Major fisheries production centres include Merauke and Sorong, which accounted for nearly 60% of total production in that year (NORAD 2009).

Social Conflict Extraction of natural resources in the area of mining, logging and illegal fishing by large private companies which has boosted the Papua’s GRDP has mostly benefit the large corporations. The utilisation of natural resources in Papua remains one of the trigger for the major conflicts in Papua between the government and the local communities. The local communities have been protesting that their natural resources are being exploited by the outsiders without considering the welfare of the local communities (FES, 2008).

Examples of conflict over natural resources in the EC include that in Jayapura in 2005 which caused the closure of copper and gold mining of Grasberg Freeport Indonesia (FES, 2008).

The issue of social conflicts over the environmental resources in Papua is reported to stem from the indigenous right for forest resources, denial of the recognition of customary land right or ancestor territory during the distribution of land right by the government in Papua. Social

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Summary of Relevant Baseline Features

conflicts also arise from the unequal distribution of social welfare between indigenous Papuans and the migrant communities (Anonymous 2013).

3.3.3 Industry and Mining According to the World Bank (2008) Papua has large potential reserves of gold, copper, natural gas and oil and active mines and the mining industry accounts for 71.6% of GRDP (WB 2008).

The majority of the mine concessions in Papua are located in the northern part of Papua province in the districts of Sarmi, Keerom and Mimika as well as the districts of Jayawijaya and Yahukimo. Mining companies holding the largest land areas are: PT Cyprus Armax Iriana (1.4 million ha) and PT Barrick Mutiara Idenburg (1.4 million ha) and PT Freeport (811,906 ha) (WB 2008). Other major industrial areas in Papua include the BP Tangguh gas project, located in Bintuni Bay (West Papua).

The existing mining and industrial facilities contribute a large proportion of the Papua/ West Papua income. The PT Freeport mine for example is estimated to generated over US$1 billion in revenue, for the provincial and central government (representing 45% and 2% of GDP respectively); while the BP Tangguh gas project is predicted to generate US$8.7 billion for the central government and US$3.6 billion for the government of West Papua over the next 20 years (DTE, 2005 cited in WB 2008). The BP Tangguh gas project involves the tapping of six fields to extract combined proven reserves of around 14.4 trillion cubic feet of clean gas through a series of offshore production platforms, sub-sea pipelines and an LNG processing facility (GRM 2009).

Aside from active mining operations, exploratory mining leases exist in the northern Papua districts of Sarmi, Waropen, Jayapura, Keerom, Jawawijaya, Nabire and Paninai (WB 2008). According to NORAD (2009), in the year 2000 some 26 commercial mining concessions covering a total area of 11 million ha, had been granted for exploration and exploitation (Anggraeni 2007 in NORAD (2009)). A subsequent survey by Sekala et al 2008 noted that some 18 companies had obtained a total of 7.1 million ha as production concessions, while another 16.2 million ha. have been allocated for exploration. (Sekala et al 2008).

3.3.4 Energy and Waste A large proportion of electricity generating capacity in Papua consists of old diesel generators, operating at 60% of capacity. Growth of capacity – less than 4% per year from 2002 to 2007 – has been half as fast as the growth of demand, far too slow to improve the chronic problem of inadequate power supplies (WB 2009). Provincial plans to improve electricity supply in Papua include plans to build two 10 MW coal power plants in Jayapura, microhydro power plants with a planned total installed capacity of 23 MW in Manokwari, Serui, Depabre, and Jayapura.

The provincial government has also considered a `Mamberamo mega-project' which would involve construction of a series of dams in the Mamberamo region to generate approximately 20,000 MW of electricity mainly for mining and aluminium smelting (WB 2008). The larger versions of the dam plans would cause the flooding of large parts of the wetlands of the upper Mamberamo basin, along with the villages there (NORAD 2009).

There are also plans for hydroelectric development in other parts of Papua including the Oxibil area of the southeast of to serve industrial development in the adjacent lowlands including oil palm and pulp wood plantations (NORAD 2009). Other potential dam sites include those at Urumuka and Paniai. According to the World Bank 2008, the Urumuka project, with potential demand from Freeport Indonesia, Timika town, a potential cement factory, and Enarotali and Nabire towns, appears the most promising.

Sanitation infrastructure is reported to be in poor shape in Papua and West Papua with solid waste mostly being dumped where it threatens ground water and where it is likely to spread

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after heavy rains. Sewage is only reported to be treated in one town, Sorong, while septeic tank services only exist in Jayapura and Sorong (World Bank 2008).

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Preliminary Overview of the Potential Issues for EC

4 Preliminary Overview of the Potential Issues for EC

This section providas a preliminary overview of potential issues for Papua Kepulauan Maluku EC based on desk research is aimed to assist discussion and facilitate feedbeck from stakeholders in the Papua Kepulauan Maluku EC.

4.1 Deforestation / Degradation of Forests Functions

Analysis of baseline data suggests that although currently reported to be relatively low, rates of deforestation in Papua appear to be increasing as a result of illegal and unregulated logging, conversion to industrial tree plantations, conversion to agriculture oil palm, and mining. Rates of deforestation in Maluku appear significant.

The drivers of deforestation in the EC are still prevalent and increasing as a result of Government policies to support economic development in this relatively undeveloped region of Indonesia. These policies combined with inadequate EIA procedures, low levels of enforcement of forest protection laws, overlapping jurisdication in allocation of forest lands for commercial purposes and unclear ownership are disincentives for local communities in the EC to sustainably manage their forest resources sustainably.

Deforestation and associated forest degradation is likely to results in loss of forest dependent biodiversity, impacts to the hydrological regime leading to change in downstream water availability and flash flooding and downstream water quality as a result of erosion and sedimentation in nearby streams and rivers. Logging and land clearance taking place in sites of high slope increase the risk of landslides. Deforestation and forest degradation lead to increased GHG emissions and reduced ability of the landscape to adapt to the likely consequences of the climate change. Logging and mining activity in forest areas have stimulated the opening up of surrounding areas to oil palm developers, logging and industrial timber plantations

Social impacts of loss of forests in the EC include the loss of livelihoods for indigenous communities dependent upon forests for non-timber forest products and increased risk of conflicts between indigenous communities and new arrivals.

Table 4.1 Areas of specific concern for deforestation

Specific areas in EC (as Specific forestry issue General risk area identified during the pre scoping workshop) This is an issue in the whole region, Forest land throughout Papua particularly as a result of and West Papua designated as establishment of new autonomous None conversion forests and regions, forestry/wood industry, palm production forests. oil plantations, and nickel, copper, and gold mining Illegal logging is common in all Illegal logging None districts and cities in the region

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4.2 Human Health Risks

Analysis of baseline data and results of the baseline workshop suggest that the low levels of access to basic health care, medical tratement, medicines and low level of sanitary and water infrastructure in Papua and West Papua and the outer islands in the Malukus contributes to the comparatively poor public health status in the EC.

Of note are the relatively high incidences of malaria, TB and HIV/AIDS. Other infectious diseases of note are leprosy and filisasis relatively rare diseases indicating poor levels of access to health facilties. The poor level of transport and communications infrastructure across Papua and West Papua where high proportions of the populations live in rural areas suggest that a significant proportion of health problems may remain unreported and that provincial level health data will not provide a good indication of the real health challenges in these two provinces.

The prevalence of HIV/AIDS is especially high in Papua belonging which highlights the risk of transmission to vulnerable groups – migrant workers, mining workers in remote areas, port workers and seafarers, road transport hubs and the poor urban population due to unprotected sex.

Pollution-associated risks to public health are likely to be key issues in rapidly urbanising areas in the EC due to rapid in migration from across the EC and from other areas in Indonesia and inadequate community health infrastructure. Contamination of water resources by poor waste (solid and wastewater) management is likely to affect disadvantaged groups in the population in rural and urban areas.

Unsafe use of pesticides and fertilizers can have negative impacts on plantantion workers and local communities who are inexperienced in their use and who are not provided with adequate training and or safety equipment or dependent on downstream water sources for consumption.

Table 4.2 Areas of specific concern for human health risks

Specific health Specific areas in EC (as identified General risk area concern during the pre scoping workshop)

Forested areas with vector mosquitoes Almost all regions of Papua / W. Malaria/ Dengue where no government programs are Papua. available for mosquito control. Kab. SBT and Halmahera Selatan

Almost all regions of Papua / W. Remote areas where vaccinations are not TB Papua. administered Kab. Buru in Maluku Very remote areas with very limited health Filaliasis Mambramo and Merauke services. Very remote areas with very limited health Bird head region & Raja Ampat / W. Leprosy services. Papua. Towns servicing mining populations, ports 29 Kabupaten/Kota in Papua and 12 and infrastructure construction sites and Kabupaten/Kota Papua Barat. HIV/AIDS. transport hubs with large male In Maluku, problem in Kota Ambon, populations. Kota Tual, Kota Namlea, Kota Dobo Exposure to Areas where oil palm and industrial treee Plantation areas surrounding agricultural chemicals plantations are being established Merauke and Jayapura Rapidly urbanising centres with poor Avian influenza. market facilities and regulations on control Merauke and Jayapura

of poultry Risk to public safety Almost in all districts and cities in as a result of Areas which have recently experienced Maluku region. On Ternate island, development location natural disasters volcanic larva is a threat to in a natural high-risk settlement areas and airport area

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Preliminary Overview of the Potential Issues for EC

Specific health Specific areas in EC (as identified General risk area concern during the pre scoping workshop) area (volcano, tsunami, earthquake, flood, etc.)

4.3 Livelihood Opportunities

Baseline data for the EC suggests that economies of the provinces in the EC are highly dependent on mining (70%) as well as agricultural production (30%) with the majority of employment in the relatively low paying agriculture sector.

Mining activities although lucrative in terms of cash incomes usually favour workers possessing basic workforce skils and capable of accepting the living conditions in the mining localities.This may preclude many of the indigenous people living in mining areas. Similarly, agricultural plantations such as oil palm and rubber plantations often require large number of workers to tend the plantations. This type of employment requires significant change of lifestyle for local people and this fact as well as the low population densities in the EC often leads to significant levels of in migration from outside the EC to fill these positions. Migration of outsiders present the risk of conflict between migrants and existing inhabitants due to conflicts in cuntural norms as well as perceptions of favouritism in employment opportunities.

Indigenous inhabitants of Papua and West Papua depend on forest resources for a large proportion of their livelihoods. Increasing rates of deforestation for mining and plantations are leading to loss of this food source for local indigenous communites with resulting impacts on food security and overall health status. At particular risk are elderly people and less educated members of the community less able to adapt to new livelihood opportunities provided. Lack of systems for compensation of this loss to local indigenous people of resources due to lack of official land title are a potential source of conflict.

Table 4.3 Area of specific concern for livelihood opportunities

Specific livelihood General risk area Specific areas in EC concern Lack of opportunity for local populations Areas planned for mining and plantation to benefit from development. None economic development Areas of existing social conflict between local people and migrants. Raja Ampat, Timika, Jayapura, Manokwari, Sorong Raya, Merauke, Conflict between Areas planned for mining and plantation Biak Numfor (Papua). Local people local people and development. are displaced by outside workers in migrants. mining areas, including those in Major city areas receiving voluntary Kabupaten Buru, Halteng, Haltim, migrants. Halsel

Decreased livelihood Areas planned for mining and plantation status as result of development. None loss of forest

resources

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4.4 Land and Soil Degradation

Analysis of baseline data suggests that the rapid rate of land use change in Papua and West Papua and the conversion of forested land for industrial tree plantations and oil palm and concomitant use agricultural pesticides and fertilizers is likely to lead to soil erosion and degradation and downstream impacts on hydrological regime and downstream ecosystems. Of particular risk in the EC are areas of high elevation/ slope and those characterised by highly erodable soils.

Drainage and conversion of peat forests for agricultural plantations is of particular concern as peat soils are important natural sink of CO2 and their drainage and destruction can lead to high levels of CO2 and methane emissions. They are also particularly vulenrable to fire and resultant large scale fires in turn again increase the GHG emissions.

Of particular importance is the contamination related to mining at existing mines such as PT Freeport and other existing mines in Papua and Maluku. Pollution of soil from mine storage facilities, waste rock dumps and tailings dams containing heavy metals and chemicals used in minerals processing (e.g cyanide) can enter food chains and impact on local communies. Tailings dams and waste rock dumps can continue to generate Acid Rock Drainage and impact on surrounding environments and communities after mine closure.

The use of mercury for extraction of gold from small scale artisinal gold mining operations contaminates soils used for agricultural production and negatively impacts on human health.

In urban areas, lack of sound municipal waste management can contribute to soil and groundwater pollution.

Table 4.4 Area of specific concern for land and soil degradation

Specific land and General risk area Specific areas in EC soil issue

In Merauke, Jayapura, Manokwari, Sorong, Increasing rate of Forest areas currently being Sorong Selatan, Bintuni, and Fakfak (Papua agriculture land developed island); and in all districts and cities (Maluku conversion region)

Land degradation is due to establishment of new autonomous regions, and palm oil plantations, High rate of land Forest areas currently being mining of nickel, copper, and gold (Papua island). degradation by developed It is a problem in industry and mining Kab Buru, MBD, SBB, SBT, Halteng, Haltim, Halut, Halsel (Maluku region) Risks of soil erosion exist in degraded areas as a Plantation areas in high slope result of land clearing for mining, DOB, plantation, / highly erodable areas. Increasing risk of soil and agriculture (Papua island). Landslides are Plantations developed close erosion problems in Kota Ambon,Kab Maluku Tengah, to rivers and other water SBB, Ternate, Halteng, Haltim, Halut (Maluku sources. region)

Soil pollution resulting from Landfill sites in urban areas. Kota Ambon and Kabupaten Buru improper waste management

Borderline conflicts among districts/cities Halmahera island (Maluku Utara) and villages

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Preliminary Overview of the Potential Issues for EC

4.5 Water and Air Pollution

Analysis of the limited baseline data available on water quality in the EC suggests that sampled rivers in Papua, especially those in urban areas and those adjacent to mining operations (and exploration) (both commercial and artisinal) are highly poluted and non compliant with Indonesian water quality standards. This negatively impacts on human health especially to the large proportion of the population dependent on river water as their main source of drinking water.

Similarly, analysis of the limited air quality baseline data suggests that air quality in the EC appears to meet ambient air quality standards in most urban areas due to low concentrations of transport and industrial emission sources. GHG emissions from land clearance and conversion of forest areas to agricultural and industrial plantations are likely to be significant.

Table 4.5 Area of specific concern for water and air pollution

Specific water / air General risk area Specific areas in EC quality issue

Heavy metal pollution Existing mining (including Mimika (Papua), and in Teluk Ambon, Teluk Kao of freshwater and mine exploration) and (Maluku) marine plantation locations

Rapidly urbanising cities in Insufficient waste the ECs. Kota Ambon, Kabupaten Buru, Kota Ternate, and water management Mine sites and construction Tobelo systems camps for infrastructure projects Rapidly urbanising centres Clean water network to housing is a problem in with large populations and Papua and in general it is a problem in all districts poor water and sanitation Water borne and cities in Maluku region. infrastructure. Urban areas diseases (e.g Urbanization is a problem in major urban areas, affected by development (e.g dysentery) namely; Kota Jayapura, Kota Sorong, Merauke, mining/ plantations) without Biak, Manokwari and Timika (Papua island) and improvements in water in all provincial capitals (Maluku region). infrastructure.

High vulnerability to Areas which have recently Kota Ambon, Kota Tual, Kab. Buru, MTB , Kab floods and droughts experienced natural disasters Maluku Tenggara, SBB, Maluku Tengah, Ternate

Air pollution Rapidly urbanising provincial threatening public centres. Kota Ambon and Kota Ternate, Maluku region health and Mining and agricultural Merauke ecosystems production areas

Areas being cleared for In Papua GHG emissions due particularly to land High GHG emissions conversion to agricultural and clearing in DOB, mining sites, palm oil from deforestation industrial plantations. plantations, and agriculture. This is an issue in all Especially peat forests. districts and cities in Maluku region

Increasing GHG emissions from In all districts and cities in energy, industry, None Maluku region transport and waste sector

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Specific water / air General risk area Specific areas in EC quality issue Rapidly developing cities Air quality related without sealed roads/ controls Almost all central mountainous areas in Papua/ ailments (e.g. upper over vehicle traffic. W. Papua. Merauke and Jayapura respiratory infection Roads near mine sites/ Kota Ambon, Kota Namlea, and Kota Ternate (ISPA))/ noise related plantation areas experiencing Bapedal Maluku, BLH Kab. stress rapid increase in vehicle Buru in the Maluku. traffic.

4.6 Loss of Biodiversity

Analysis of the baseline data on biodiverisity in the EC suggests that similar to the issues surrounding deforestation and degradation, loss of biodiversity is becoming a major concern associated with increased rates of deforestation and forest degradation in the EC. Loss of biodiversity is a critical issue in the EC given the status of the EC as one of the most biodiversity-rich regions in Indonesia with forest, freshwater and marine environments are considered to be of global biodiversity conservation value and vitally important to the livelihoods of the local indigenous populations.

Table 4.6 Area of specific concern for loss of biodiversity

Specific biodiversity General risk area Specific areas in EC issue In areas Significant habitat fragmentation takes place undergoing rapid due to land acquisition, mining, and palm oil Habitat fragmentation expansion of oil estate. It is also taking place in all districts palm and inustrial and cities in Maluku and Maluku Utara. tree plantations. Threat to indigenous species in Papua is particularly due to invasion of introduced High number of species (monkey, Gabus, Toraja, wild bulls, threatened species deers). This is an issue in all districts and cities in Maluku and Maluku Utara. High vulnerability of In all districts/cities in Maluku and Maluku biodiversity to climate Utara. Coastal and mountainous areas in change Papua. Ecosystems overexploitation (including poaching, illegal trade of All districts and cities in Maluku and Maluku flora and fauna, Utara. destructive fishing methods, human-wildlife conflict)

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Preliminary Overview of the Potential Issues for EC

4.7 Coastal Degradation

Analysis of the baseline data on coastal ecosystems in the EC suggests that due to low population densities and low levels of development in the EC, coastal resources are still abundant in comparision to other parts of Indonesia. Baseline data also suggests that issue of overharvesting of coastal mangrove forests, destruction of coral reefs and illegal and overfishing occur in the EC and are increasing as economic development in the EC accelerates.

Table 4.7 Area of specific concern for coastal degradation

Specific coastal degradation General risk area Specific areas in EC issue

High-level mangrove habitat degradation in High level of coastal habitat Sorong, Bintuni Bay Mimika, Jayapura and degradation (including Waropen is particularly due to: (a) mining and mangroves and coral reefs) development of resettlement/ business centers; resulting from costal and (b) high demand of mangrove. Coral reefs

development, water pollution degradation exists in almost all coastal areas of (including sedimentation), Papua because of destructive fishing, cyanide mining (especially offshore) fishing, corral mining and opening of mining sites. and fishing (especially illegal) Coastal habitat degradation takes place in all coastal areas of Maluku and Maluku Utara

High vulnerability of costal Within all coastal areas in the region, due to

ecosystems to climate change deforestation as the root of the problem.

This is an issue in all districts and cities in Maluku High level of coastal erosion and Maluku Utara

4.8 Environmental Management

Issues surrounding environmental management in the EC currently include:

• Conflicts between central government efforts to maintain control over the management of the Province's resources and regional autonomy and Papua's special autonomy laws

• Poor or absent institutional and human resources management capacity. For example while covering large areas none of Papua's conservation areas have management plans in place. According to the WB (2008), the Ministry of Forestry plans to improve terrestrial management of conservation areas over the next 5 years, particularly in Lorentz World Heritage Site and Wasur National Park. Another study by GRM (2009) provided an example of the staffing constraints in one District in Papua which was responsible for of 1.3 million areas of forest natural resource (protected forest, natural resources conservation, production forest, conversion production. To manage this area the district was only allocated 56 staff including 5 5 polisi hutan/forest rangers/forest police.and its total routine budget accounted to Rp 1.8 billion and Rp 4.8 billion for development budget (GRM 2009).

• Conflict between exploration rights of mining companies and protected areas.

• Boundaries of protected areas remain disputed by indigenous people who maintain customary rights over most of Papua's land and coastal areas. Much land in Papua formerly considered to be the customary or adat land of local tribes and clans is now formally classified as state lands and large areas have been allocated as concession to forestry and mining companies. Other areas constitute titled land or have been formally designated as national reserves. Still further areas of land remain adat land owned by local communities, used for subsistence activities, rented out to others or commissioned to forestry enterprises.

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At the same time, there is a considerable overlap between areas, where multiple classifications exist and government allocations bear little resemblance to the resources-or their use-on the ground. The overall land use situation in Papua is thus relatively complex. The main problem in natural resources and environmental management is the lack of synchronization between the policies of central government with the local administrations under the umbrella of Special Autonomy Law (NORAD 2009).

• Conflict between development plans of district, provincial and central government regarding protected areas

• Inadequacies of the AMDAL process which is required to take place before obtaining a license for any large-scale extractive activity or development including logging, mining, estate crop and industrial timber plantation development, and road and other infrastructure developments, such as dams. NORAD (2009) noted that weaknesses in the AMDAL process stem from the fact that they are often conducted by the company in question rather than an independent body, which tends to make them merely a pro forma exercise and also noted weaknesses in monitoring of operations by government agencies especially at remote sites.

• The poor enforcement of Indonesian environmental legislation which very rarely result in convictions or penalties for non-compliance. Due in part to corruption as well as inadequate capacity to collect and follow cases through to prosecution, vague and poorly drafted laws and direct involvement of law enforcers in illegal activities (Casson et al. 2007 in NORAD 2009).

Table 4.8 Area of specific concern for environmental management

Specific coastal General risk area Specific areas in EC degradation

High number of Areas of existing Environmental conflicts on uses of natural environmental environmental conflict resources exist in all districts/cities, generally conflicts

Areas where new districts Weak coordination of have been declared. Areas In all districts and cities in Maluku and Maluku planning systems with significant indigneous Utara provinces land claims.

SEA for spatial planning was undertaken only in Insufficient quality of KabupatenMerauke (Papua).

SEA and EIA In Maluku and Maluku Utara the issue is generally true in all districts/cities.

Lack of proper In Maluku and Maluku Utara the issue is

coastal management generally true in all districts/cities.

Issues in protected area management exist in the Difficulties in whole area particularly because there is no protected areas´ planned for applying community-based management management principles.

Low level of environmental This is true in the whole region (all districts/cities) compliance enforcement

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Main Conclusions and Preliminary Recommendations Resulting from Pre-Scoping

5 Main Conclusions and Preliminary Recommendations Resulting from Pre-Scoping

Pre-Scoping activities have resulted in the identification of potential key issues for the Papua Kepulauan Maluku Economic Corridor through a review of available data and information and stakeholder workshop undertaken in Makassar, Sulawesi. The Pre-Scoping activities also have collected a lot of data and information from the provinces in the Economic Corridor as well additional data required for the Scoping phase and their source.

Table 5.1 Preliminary recommendations according to findings from Pre-Scoping activities

Identified Risks and Opportunities Initial Policy Recommendations Deforestation / Degradation of

Forests Functions Territorial/land use conflicts resulting Thorough cost benefit analysis of land use allocations from inconsistent permitting surrounding oil palm taking into consideration potential for procedures. payment for ecological services/ REDD+ etc Cross sectoral conflicts (mining vs. Strengthened central government support for spatial planning plantation vs. forestry (selective logging process in Papua involving all government and community and tree plantations). stakeholders at the central, provincial and district level. Policy reform to ensure consistency with Autonomy law and framework for natural resource management and conservation in Conflicts among stakeholders with Papua. Where indigenous lands are required for development or official permits vs. communities with conservation, introduce system of safeguards including indigenous customary claims. principles of free and informed consent and compensations for loss of traditional livelihoods. Inadequate government resources allocated to enforcement and Strengthening the level of resources allocated to protected areas monitoring of existing legislation for ensuring their role in protection of important ecosystems, forestry and mining/ protected area biodiversity and local culture/heritages. boundaries. Climate change mitigation and Incorporate climate change scenarios into spatial planning adaptation process before allocation of lands for development purposes. Proactive effort from central government to put health Human health risks infrastructure and medical personnel in place in anticipation of

increases in population associated with MP3EI projects. Proactive effort from central and provincial government in managing the significant potential health and other social

impacts associated with large scale migration to support increased economic activity in the EC. Regulations/ guidelines in place to ensure equity in employment for local indigenous people on projects funded under the MP3EI Livelihood opportunities including mining and estate agriculture as well as other initiatives such as share cropping to ensure that the benefits from these new industries benefit local communities. Inclusion of thorough soil/ land suitability data in spatial plans to Land and soil degradation ensure that tree plantations are only allocated in environmentally suitable lands. Focus on urban planning in anticipation of increases in Water pollution populations in urban areas. Apply systems for management of air quality impacts of Air pollution and Climate Change infrastructure development. Ensure allocation of protected areas across the EC reflects Loss of Biodiversity biodiversity values in these areas and that all ecosystems and

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Identified Risks and Opportunities Initial Policy Recommendations biodiversity are adequately protected. Coastal degradation Ensure coastal ecosystems are sustainably managed Improve AMDAL process for assessment and management of environmental impacts of MP3EI projects including the effect of Environmental management induced development (e.g from large scale road developments in greenfield sites)

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APPENDICES

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APPENDIX A MP3EI Planning Information in the Papua Kepulauan Maluku EC

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A MP3EI Plannning in the EC

Table A. 1 List of Economic Development Projects

ECONOMIC PROJECTS Economic Activity Cost & Source Impl PLANNED REGULATIONS INFRASTRUCTURE Project Number & Name KPI Location & Objective (IDR Miliar) Period (1) (2) (3) (4) (5) (6) (7) (8) 1. Food Production (MIFFE) Development and . Development of Merakuke Expansion of Cluster of Integrated Food Estate and Agricultural Production 57,000 P 2011-2014 Merauke . Preparation of Energy with the total areal of +/- Centers (Klaster Sentra maintenance and 500.000 ha which consists of 10 Produksi Pertanian - development plans for clusters of Agricultural KSPP I) water resources Production Centers (KSPP) with Provision of Capitals for infrastructure networks short term development priority Community and swamp (2011-2014) to develop clusters Empowerment and 69 G 2008-2010 Merauke reclamation I to IV. The planned land use in development of . Development of KSPP consists of agriculture Investments service and collection- land, settlement area, industry . Gradual development of food distribution centers for and processing area, general estate land agricultural products service and infrastructure center . Accelerate the process of . Development of sea area. releasing designated forest port in Merauke and . Four KSPP clusters being land into food estates areas the docks along the developed are: Greater Merauke, . Socialization to the local Kalimaro River and Kali Kumb, Yeinan, and Bian community about the the Bian River located in Merauke Regency implementation and benefits . Development of . The medium term planned of the MIFEE program for the connectivity routes development (2015-2019) will be Optimization and welfare of the community connecting palm oil directed at developing areas of extension of agricultural plantations to mills agricultural production centers 58.51 G 2011-2012 Merauke. lands for farmers and port locations for food crops, horticulture, empowerment . Improvement and animal husbandry, plantation development of roads and aquaculture in Clusters and bridges in each Okaba, Ilwayab, Tubang and Agriculture Production Tabonji. Center Cluster (KSPP) . The long terms planned . Rehabilitation and development (2020-2030) will be development of Water directed at the establishment of System in each KSPP a central production area for food crops, horticulture, animal husbandry, fishery and

A-1

ECONOMIC PROJECTS Economic Activity Cost & Source Impl PLANNED REGULATIONS INFRASTRUCTURE Project Number & Name KPI Location & Objective (IDR Miliar) Period plantation in Clusters Nakias and Selil. Development and Nickel . Simplification of rules and and Cobalt Smelter and bureaucracy (among Development of Ferro- 48,600 P 2012-2017 Weda agencies and ministries) to Nickel Plant (PT Weda make it easier to open new Bay) mines and operate the mines Development of nickel . Improve regulations to make processing in Halmahera investments in nickel mining 19,950 P 2012-2014 Gosowong . Power generation (PT. Aquila Nickel more attractive (energy availability) 2. Nickel Indonesia) . Improve coordination . Access road between . Increase the activities of nickel between various ministries the mining area and mining investment that meets . Improvement of land use the smelting and environmental and social regulations and other refining facilities aspects, with main development regulations in the granting of . Sea port infrastructure area in Weda, Halmahera mining permits to companies that can serve the Tengah Regency, North Maluku. . Strengthening downstream transport of equipment Development of Ferro- industries with the facilitation G and materials from Nickel Plant in Halmahera 14,400 2012-2014 Buli - Maba of strong partnership and O other regions (PT Antam) synergies between Ferro Nickel industry with its upstream and downstream industries . Government support in the form of investment incentives for investors 3. Fishery . Determination of Maluku as designated area of National Fish Reserves and developing Morotai Development of Mega Minapolitan, with fishery Indonesia Marine 1,300 P Tual (no information available) (no information available)

. Development of fishery activity in Industrial Zone West Papua and Papua based on each existing potential conditions

Pit mining at CoW Area . Encourage implementation . Development of non- 4. Copper 150,000 P 2009-2014 Timika Block A in Mimika of Law No.4/2009 on diesel power plants . Increase production surplus of Copper smelter and Mineral and Coal Mining, by and the making of off- copper to meet the needs of purification in Timika (PT building a Copper Industrial grid clean energy industry within and outside the 10,000 P 2011-2015 Timika Global Perkasa Park in Timika designated facilities for remote country through smelters Investindo) as a location for industrial scattered exploration

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ECONOMIC PROJECTS Economic Activity Cost & Source Impl PLANNED REGULATIONS INFRASTRUCTURE Project Number & Name KPI Location & Objective (IDR Miliar) Period development in Timika in 2014. Development of heavy processing and refining of areas metal (TiO2) processing 850 P Timika copper concentrates and . Improve port facilities

plant (PT Trimex) other downstream such as cargo industries processing facilities as . Revise PP No.62/2008 on well as increased Mining Development, to connectivity to encourage the creation of a Jayapura Airport favorable investment . Increase cargo climate, encourage capacity in Timika increased exploration Seaport efforts, and ensure the . Improve preservation of the infrastructure for environment in mining underground mining zones in the Block A Area . Ensure allocation of mining Contract of Work, in zones for Papua Province Mimika District Spatial Plan as well as in . Development of regency spatial planning access roads from documents the Copper Industrial Development of copper Area to the Timika cathode draining in Wetar 2,016 P 2007-2014 Wetar Port Maluku . Construction of a Hydroelectric Powerplant (HEPP) in Urumuka . Development of Waste Treatment Plant, Water System, Roads, Drainage and Greenery at the industrial park and its surrounding . Development of Information & Telecommunication Network Systems for the Copper Industrial Park in Timika 5. Oil & Gas . Increase production . Promote the . Optimize the oil and gas Development of Gas reserves through increased development of production on the main petroleum Tangguh Project in Teluk 108,000 P 2012-2015 Teluk Bintuni exploration and exploitation natural gas reserves in Sorong, West Coast Bintuni activities infrastructure Block Sarmi, Semai and gas . Increase the convenience of . Construction of

A-3

ECONOMIC PROJECTS Economic Activity Cost & Source Impl PLANNED REGULATIONS INFRASTRUCTURE Project Number & Name KPI Location & Objective (IDR Miliar) Period reserves around Teluk Bintuni. investors in conducting transmission business activities pipelines in the . Increase the availability of Bintuni Bay area information related to the . Development of availability of natural gas distribution network . Increase the synergy of in the Bintuni Bay government with relevant area stakeholders . Construction of . Implement single window or Airplane Filling Depot one-stop-service in the area in Sorong of exploration permits and . Development of a production, to resolve City Gas Network in cross-cutting issues Sorong (overlapping land and . Construction of a environmental impacts) LPG Bulk Filling . Create a more attractive Stations (SPBE) and Production Sharing LPG Bulk Transport Contract (PSC) offering, and Storage Station especially to areas that are (SPPBE) in some difficult to explore districts that have . Develop agreements and converted the use of contracts for oil and gas kerosene to LPG. revenue sharing with the local government Expansion of gold production in Halmahera 18,000 P 2011 Halmahera (PT Nusa Halmahera) 6. Gold (no information available (no information available Increasing Production of gold mining (PT Nabire 764 P Nabire

Bhakti Mining) Development/ 7. Animal Husbandry revitalization cattle 1.2 G 2007 Manokwari (no information available (no information available grazing fields Development of Cement 8. Cement 2,375 P Manokwari (no information available (no information available Plant in Manokwari

*) SOE = State-Owned Enterprise (BUMN)

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Table A. 2 Planned policy/regulation and infrastructure in Papua EC

Economic No Planned Regulation Planned Infrastructure/Connectivity Activities

. Preparation of maintenance and development plans for water resources infrastructure networks and swamp reclamation . Development of service and collection-distribution centers for agricultural . Gradual development of food estate land products . Accelerate the process of releasing designated forest land into food estates . Development of sea port in Merauke and the docks along the Kalimaro River Food Agriculture 1 areas and the Bian River (MIFEE) . Socialization to the local community about the implementation and benefits of . Development of connectivity routes connecting palm oil plantations to mills the MIFEE program for the welfare of the community and port locations . Improvement and development of roads and bridges in each Agriculture Production Center Cluster (KSPP) . Rehabilitation and development of Water System in each KSPP

. Development of non-diesel power plants and the making of off-grid clean energy facilities for remote scattered exploration areas . Improve port facilities such as cargo processing facilities as well as increased . Encourage implementation of Law No.4/2009 on Mineral and Coal Mining, by connectivity to Jayapura Airport building a Copper Industrial Park in Timika designated as a location for . Increase cargo capacity in Timika Seaport industrial processing and refining of copper concentrates and other . Improve infrastructure for underground mining in the Block A Area Contract of downstream industries Work, in Mimika District 2 Copper . Revise PP No.62/2008 on Mining Development, to encourage the creation of . Development of access roads from the Copper Industrial Area to the Timika a favorable investment climate, encourage increased exploration efforts, and Port ensure the preservation of the environment in mining zones . Construction of a Hydroelectric Powerplant (HEPP) in Urumuka . Ensure allocation of mining zones for Papua Province Spatial Plan as well as . Development of Waste Treatment Plant, Water System, Roads, Drainage and in regency spatial planning documents Greenery at the industrial park and its surrounding . Development of Information & Telecommunication Network Systems for the Copper Industrial Park in Timika

. Simplification of rules and bureaucracy (among agencies and ministries) to make it easier to open new mines and operate the mines . Improve regulations to make investments in nickel mining more attractive . Improve coordination between various ministries . Power generation (energy availability) . Improvement of land use regulations and other regulations in the granting of . Access road between the mining area and the smelting and refining facilities 3 Nickel mining permits to companies . Sea port infrastructure that can serve the transport of equipment and materials . Strengthening downstream industries with the facilitation of strong partnership from other regions and synergies between Ferro Nickel industry with its upstream and downstream industries . Government support in the form of investment incentives for investors

A-5

Economic No Planned Regulation Planned Infrastructure/Connectivity Activities

. Increase production reserves through increased exploration and exploitation activities . Increase the convenience of investors in conducting business activities . Promote the development of natural gas infrastructure . Increase the availability of information related to the availability of natural gas . Construction of transmission pipelines in the Bintuni Bay area . Increase the synergy of government with relevant stakeholders . Development of distribution network in the Bintuni Bay area . Implement single window or one-stop-service in the area of exploration . Construction of Airplane Filling Depot in Sorong 4 Oil and Gas permits and production, to resolve cross-cutting issues (overlapping land and . Development of a City Gas Network in Sorong environmental impacts) . Construction of a LPG Bulk Filling Stations (SPBE) and LPG Bulk Transport . Create a more attractive Production Sharing Contract (PSC) offering, and Storage Station (SPPBE) in some districts that have converted the use of especially to areas that are difficult to explore kerosene to LPG. . Develop agreements and contracts for oil and gas revenue sharing with the local government

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Table A. 3 List of KPI and its allocation for economic activities (Masterplan Document)

No Zones of Investment Focus Allocation/designation Province

1 KPI Merauke Food Agriculture Papua 2 KPI Timika Copper Papua 3 KPI Nabire Gold Papua 4 KPI Teluk Bintuni Oil & Gas West Papua 5 KPI Manokwari Animal Husbandry, Cement West Papua 6 KPI Ambon Fisheries Maluku 7 KPI Halmahera Nickel North Maluku 8 KPI Morotai Fisheries North Maluku 9 KPI Wetar Copper Maluku 10 KPI Tual Fisheries Maluku

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APPENDIX B List of Potential Key Issues for the Papua Kepulauan Maluku EC

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List of Potential Key Issues for the Papua Kepulauan Maluku EC

B List of Potential Key Issues for the Papua Kepulauan Maluku EC

Table B. 1 List of Potential Key Issues for the Papua Kepulauan Maluku Economic Corridor and Additional Data and Information Needed

Specific topics, concerns Issues Geographical Scope Data Source and problems

Papua region: upper respiratory infection • Number of death (ISPA) in almost all central mountainous areas; TBC and Malaria in almost all region; /incidence of High incidence of infectious Leprosy in bird head region & Raja Ampat), malaria and other • Health Agency (provincial and sub-provincial) diseases - TBC, malaria, Filaliasis in Mambramo and Merauke. major infectious dengue • Malaria Centre di Bacan Maluku region: TBC in Kab. Buru; Malaria and diseases dengue in all region, especially in Kab. SBT prevalence and and Halmahera Selatan estimated HIV/AIDS in 29 Kabupaten/Kota di Papua and High incidence of emerging geographic area 12 Kabupaten/Kota Papua Barat. It is a • HIV KPAD diseases – avian influenza, problem in Kota Ambon, Kota Tual, Kota • Availability of health HIV/AIDS • Health Agency (provincial and sub-provincial) Namlea, Kota Dobo (Maluku region) services – no. of Environmental conditions It is a problem in Kota Ambon, Kota Namlea, doctors, no. of negatively affecting human Bapedal Maluku, BLH Kab. Buru and Kota Ternate health – air pollution, noise hospital beds / per Insufficient water supply Clean water network to housing is a problem capita Public Works (provincial and sub-provincial) 1. Human health infrastructure (both in urban in Papua Island, and in general it is a problem • Coverage by water Local PDAM and rural areas) in all districts and cities in Maluku region supply/sewage Lack of such facilities like, media, medical staffs, medicines, doctor visits, and medical systems experts is a problem in newly-established infrastructure autonomous regions (Papua island), and in Poor access to health services (coverage) outer islands and remote/isolated areas, Health Service (provincial and sub-provincial), BPS in remote areas including: Kab. MTB, MBD, and Kep. Aru, Kab • Incidence of natural Pulau Morotai, Halteng, Haltim, Kab SBT and disasters Kab Buru Selatan, Halsel, Kepulauan Sula (earthquakes, and Taliabu floods etc.) Almost in all districts and cities in Maluku High number of population region. On Ternate island, larva is a threat to • Population living in BPBD Provinsi dan Kab/Kota living in disaster-prone areas settlement areas and airport area disaster-prone High number of population in a Almost in all districts and cities in Maluku areas potential risk as a result of Bappeda Provinsi, Bapedal Provinsi, BLH Kab/Kota region climate change • Existence of High mortality rate of mothers Emergency Badan Pemberantasan NARKOBA/MIRAS –

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Specific topics, concerns Issues Geographical Scope Data Source and problems

and babies Preparedness POLDA Papua

Increased use of Program & Health drugs/addictive substance and Sector Response alcohols for Disasters • Situation regarding Land and natural resource use conflict exist in High number of social conflicts Raja Ampat, Timika, Jayapura, Manokwari, underage workers involving indigenous BPN adn Public Works at sub-provincial level Sorong Raya, Merauke, Biak Numfor (Papua). (no official data the communities – especially in Badan Kesbangpol at provincial level Local people are displaced by outside workers case of mining and palm oil most probably ESDM in mining areas, including those in Kabupaten plantations development Buru, Halteng, Haltim, Halsel available) • Poverty rate Possibly increasing number of There might not be any official data on this but • Spatial distribution Agency of Social Affairs and Agency of underage workers it might be an issue in all capital cities Transpigration and Labor, at sub-provincial level of indigenous Especially in rural and remote areas on Papua groups BPS and BPMPD at provincial and sub-provincial High poverty rate island and in all districts and cities in Maluku level region • Social conflict cases and its Public transportation is a significant problem Inadequate public transport in the whole region. Papua island is a huge spatial distribution systems between regions and and mountainous area with less population, due to industrial Transportation Agency, Bappeda 2. Livelihood in large cities while Maluku region consists of many development scattered, and often remote islands (mining, plantation)/land acquisition of customary Urbanization is a problem in major urban territories/forests areas, namely; Kota Jayapura, Kota Sorong, • Number of BPS, Agency for Transmigration and Labors, Rapid urbanisation Merauke, Biak, Manokwari and Timika (Papua operated public Bappedda, BPS, and district/city agencies of island) and in all provincial capitals (Maluku population region) transportation and facilities/services (bus, minibus, taxi, road networks) • Residential areas In Merauke, Jayapura, Manokwari, Sorong, • Fertilizer and Increasing rate of agriculture Sorong Selatan, Bintuni, and Fakfak (Papua • Provincial Agriculture Agency, Forestry Agency, 3. Land and Soil pesticides used in land conversion island); and in all districts and cities (Maluku BLH, Bappeda, BPN region) agricultural and

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List of Potential Key Issues for the Papua Kepulauan Maluku EC

Specific topics, concerns Issues Geographical Scope Data Source and problems

Land degradation is due to establishment of plantation new autonomous regions, and palm oil High rate of land degradation plantations, mining of nickel, copper, and gold • Watershed erosion • Provincial Agriculture Agency, Forestry Agency, by industry and mining (Papua island). It is a problem in rates BLH, Bappeda, BP DAS Kab Buru, MBD, SBB, SBT, Halteng, Haltim, • Mining concessions Halut, Halsel (Maluku region) • Agriculture land Risks of soil erosion exist in degraded areas as a result of land clearing for mining, DOB, conversions plantation, and agriculture (Papua island). • Agriculture Agency, Forestry Agency, BLH Increasing risk of soil erosion • Land subsidence Landslides are problems in Kota Ambon,Kab Maluku Tengah, SBB, Ternate, Halteng, BPBD (Provincial and district/city levels) Haltim, Halut (Maluku region) Soil pollution resulting from This is a problem in Kota Ambon and Agency for Cleanliness (Kota Ambon), BLH Kab improper waste management Kabupaten Buru Buru (landfilling) Borderline conflicts among especially in Halmahera island (Maluku Utara) Planning Agencies (Bappeda) districts/cities and villages • River water pollution in • Papua: UNCEN,UNIPA, PU, BLH Heavy freshwater and marine Mimika (Papua), and in • Maluku: LIPI Ambon, LIPI Ternate, Pattimura pollution Teluk Ambon, Teluk Kao • Water pollution University, Khairun University (Maluku) • Floods and Papua: UNCEN,UNIPA, PU, BLH In the Papua island, hospitals are in need of droughts

4. Water Insufficient waste water waste water management. In the Maluku Areas with • Maluku: Agency for City Cleanliness and Parks management systems region, it is a problem in Kota Ambon, (in)adequate (Kota Ambon), Provincial BLH, Urban Planning Kabupaten Buru, Kota Ternate, and Tobelo wastewater Agency Kabupaten Buru This is a problem in many places in the management High vulnerability to floods and Maluku region, namely: Kota Ambon, Kota BPBD droughts Tual, Kab. Buru, MTB , Kab Maluku Tenggara, BMG SBB, Maluku Tengah, Ternate • This is an issue in Kota • Strategy and Action Air pollution threatening public health and ecosystems Ambon and Kota Plan for National • Provincial Bapedal Ternate, Maluku region Urban Air Quality In the Papua island, GHG emissions due Improvement particularly to land clearing in DOB, mining 5. Air and Climate High GHG emissions from sites, palm oil plantations, and agriculture. (NSAP) and Forestry Agency, UNCEN,UNIPA, BMKG deforestation This is an issue in all districts and cities in Regional (LSAP) Maluku region through Urban Air Increasing GHG emissions ESDM, Transport, Trade and Industry, Public In all districts and cities in Maluku region Quality from energy, industry, Improvement Works

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Specific topics, concerns Issues Geographical Scope Data Source and problems

transport and waste sector Sector Development Program for five urban areas This is an issue in the whole region, particularly as a result of establishment of new • Forestry Agency, Forestry Research and High rate of deforestation and autonomous regions, forestry/wood industry, forest degradation Development Body, BBKSDA, National Park palm oil plantations, and nickel, copper, and 6. Forests Body gold mining

• Forestry Agency, Forestry Research and Illegal logging is common in all districts and Illegal logging cities in the region Development Body, BBKSDA, National Park Body Significant habitat fragmentation takes place • Information • Papua: BBSDA, Kementrian LH, WWF, CII, due to land acquisition in DOB, mining, and regarding the TNC, UNIPA, UNCEN Habitat fragmentation palm oil estate. It is also taking place in all districts and cities in Maluku and Maluku invasive species • Maluku: Forestry Agency and Agency of Fishery Utara threats the and Marine Affairs (DKP) existence of Papua: BBSDA, KLH, WWF, CII, TNC, UNIPA, Thread to indigenous species in Papua is UNCEN particularly due to invasion of introduced endemic species High number of threatened species (monkey, Gabus, Toraja, wild bulls, (location, causes) species Maluku: Agency for Marine Affairs and Fisheries deers). This is an issue in all districts and • Distribution of (DKP), cities in Maluku and Maluku Utara protected species LIPI, Forestry Agency 7. Biodiversity (endangered and High vulnerability of In all districts/cities in Maluku and Maluku Agency of Fishery and Marine Affairs (DKP), critically biodiversity to climate change Utara Forestry Agency endangered) • Cases of human- Threat to biodiversity is due to deforestation Papua: BBSDA, KLH, WWF, CII, TNC, UNIPA, Ecosystems overexploitation (mining, DOB, pal oil plantations, and wildlife conflict UNCEN (including poaching, illegal agriculture). IUU fishing, fishing by foreign (location, causes)

trade of flora and fauna, vessels, and destructive fishing practices • Information on Maluku: Forestry Agency, Agency for Fishery and destructive fishing methods, (bombs, cyanide fishing). In Maluku and Marine Affairs (DKP), Balai Karantina (Quarantine human-wildlife conflict) Maluku Utara it takes place in all districts and climate change Body) cities effects on biodiversity High level of coastal habitat High-level mangrove habitat degradation in • Coral reefs • Papua: Agency of Fishery and Marine Affairs 8. Coastal degradation (including Sorong, Bintuni, Mimika,Jayapura and Degradation mangroves and coral reefs) Waropen is particularly due to: (a) mining and condition (DKP), CII,TNC, UNIPA, UNCEN resulting from costal development of resettlement/ business • Degraded coastal • Maluku: Agency of Fishery and Marine Affairs

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List of Potential Key Issues for the Papua Kepulauan Maluku EC

Specific topics, concerns Issues Geographical Scope Data Source and problems

development, water pollution centers; and (b) high demand of mangrove. areas (DKP), ESDM (Agency of Energy and Mineral (including sedimentation), Coral reefs degradation exists in almost all mining (especially offshore) coastal areas of Papua because of destructive • Mangrove condition Resources), LIPI and fishing (especially illegal) fishing, cyanide fishing, corral mining and • Rate of coastal opening of mining sites. Coastal habitat abrasion and degradation takes place in all coastal areas of degradation Maluku and Maluku Utara • Papua: Agency of Fishery and Marine Affairs It is yes with all coastal areas in the region, High vulnerability of costal due to deforestation as the root of the (DKP), CII,TNC, UNIPA, UNCEN ecosystems to climate change problem. Malluku: Agency of Fishery and Marine Affairs (DKP), LIPI This is an issue in all districts and cities in High level of coastal erosion Agency of Fishery and Marine Affairs (DKP) Maluku and Maluku Utara • Previous or on- • Provincial BLH, BAPEDALDA, BAPESDAL High number of environmental Environmental conflicts on uses of natural conflicts resources exist in all districts/cities, generally going EIAs for • Forestry Agency important major • BLH District/City Level Weak coordination of planning In all districts and cities in Maluku and Maluku projects Bappeda at the provincial and district/city levels systems Utara provinces • Coastal zone SEA for spatial planning was undertaken only Insufficient quality of SEA and in KabupatenMerauke (Papua). management plans Provincial and district/city level BLH, BAPEDALDA, EIA In Maluku and Maluku Utara the issue is • Environmental BAPESDAL 9. Environ-mental generally true in all districts/cities. conflicts Management Lack of proper coastal In Maluku and Maluku Utara the issue is • Previous or on- LIPI management generally true in all districts/cities. Dinas Kelautan dan Perikanan going EIAs for Issues in protected area management exist in important major Difficulties in protected areas´ the whole area particularly because there is Provincial BLH, BAPEDALDA, BAPESDAL management no planned for applying community-based projects Forestry Agency management principles. • Coastal zone management plans Low level of environmental This is true in the whole region (all Provincial BLH, BAPEDALDA, BAPESDAL compliance enforcement districts/cities) • Environmental conflicts Low use of innovative technologies and methods in • Inventory of This is an issue in all all districts/cities in industry (energy efficiency, low Maluku and Maluku Utara abandoned mines • Dinas Perindag 10. Industry and emission/low waste and illegal mines Mining technologies etc.) • Inventory of mining Low level of compliance with In all districts/cities in Maluku and Maluku Provincial Bapedal emission standards Utara permits

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Specific topics, concerns Issues Geographical Scope Data Source and problems

This is the case of mining practices in remote • Status of post- Difficulties in reclamation of areas in Papua and Papua Barat and • ESDM (Agency of Energy and Mineral mining reclamation ex-mining sites Kabupaten SBT, MBD and Halmahera Resources) Tengah • Application of best available techniques in the various industrial Illegal mining practices exist along rivers of sectors • ESDM (Agency of Energy and Mineral Illegal mining tailings disposal in Mimika, Nabire (Papua) and in Kabupaten Buru (Maluku). • Cases of industries Resources) non-complying with environmental standards Virtually energy (fossil energy) demand in all • ESDM (Agency of Energy and Mineral Inefficient energy use and districts/cities in the region is increasing, • Waste generation Resources) growing energy demand although in rural areas of Papua population and waste still use firewood. • PLN (State Electricity Company) collection Areas with insufficient Generally all districts/cities face insufficient • Waste treatment electricity supply and electricity supply, in particular, the newly- and processing PLN (State Electricity Company) occurrence of blackouts established autonomous regions • Controlled and Low utilization of renewable Generally all districts/cities have not optimally uncontrolled landfill • ESDM (Agency of Energy and Mineral 11. Energy and energy resources use renewable energy resources. Resources) Waste sites, including Increasing production of In all capital cities in the region information on Agency of Cleanliness and Agriculture municipal waste small scale waste ESDM (Agency of Energy and Mineral burning practices • Increasing production of In the District of SBT (Maluku) Resources) • Energy demand industrial waste BLHTK Kabupaten SBT • Electricity blackouts Provincial Bapedal • Cases of failure in Low capacities for waste Provincial Bapedal Di seluruh ibukota Provinsi dan Kab/Kota fuel supply management BLH Kabupaten/Kota

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APPENDIX C Baseline data available for provinces in the EC

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C Baseline Data Available for Provinces in the EC

Table C. 1 Provinces of Papua and Papua Barat

Data and Information Needed Data Source and Contacts

Provincial Bappeda of Papua and Papua Barat Spatial Plans or RTRW (with maps in shape-file Chairperson of Bappeda Papua Barat: Ishak Hallatu, HP 081344891977 Provincial Bappeda of Papua and Papua Barat Long-Term Development Plan (RPJPD) Chairperson of Bappeda Papua Barat: Ishak Hallatu, HP 081344891977 Provincial Bappeda of Papua and Papua Barat Medium-Term Development Plan (RPJMD) Chairperson of Bappeda Papua Barat: Ishak Hallatu, HP 081344891977 BAPESDALH of Papua and Papua Barat BAPEDALDA of Papua Barat (Jack Manu Cawai – Environmental Status (SLH) 081344656010) PPE (Center for Ecoregion Management) Papua • Documents are available in the respective Sectoral Plans (such as Fishery Master Plan) Technical Agencies • Provincial Governments of Papua and Papua Barat • MRP (BAPESDALH of Papua and Papua Barat) • DAP • PT Freeport Stakeholders and key informants for next phase • Kelapa Sawit (Palm Oil) • BP • DPR • DPD • Fokker • Marine Biota Connectivity Research Report Academic/Study Reports (Environmental Research Center, UNIPA) • Data and Analysis – Marine Conservation Area Management Relevant environmental and social datasets • BAPPESDALH Papua • RACE/Rapid Assessment Conservation Economics

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Table C. 2 Province of Maluku Utara

Data and Information Needed Data Source and Contacts

Provincial Bappeda of Maluku Utara Spatial Plans or RTRW (with maps in shape- Muhammad Abdul Kahar file) [[email protected]] Provincial Bappeda of Maluku Utara Long-Term Development Plan (RPJPD) Muhammad Abdul Kahar [[email protected]] Provincial Bappeda of Maluku Utara Medium-Term Development Plan (RPJMD) Muhammad Abdul Kahar [[email protected]] BLH of Maluku Utara Environmental Status (SLH) PPE (Center for Ecoregion Management) Maluku • Maluku Utara in Numbers Sectoral Plans (such as Fishery Master Plan) • RIPPDA • Zoning Plan of Coastal Areas and Small Islands • Khairun University of Ternate • Balitbangda Stakeholders and key informants for next phase • Masyarakat Adat • CSR Companies/Institutions • District governments in PM3EI locations Ku UAcademic/Study Reports • Relevant environmental and social datasets •

Table C. 3 Province of Maluku

Data and Information Needed Data Source and Contacts

Spatial Plans or RTRW (with maps in shape- Provincial Bappeda of Maluku file) Djalaluddin Salampessy (Kabid) 081247247321 2005-2025 Long-Term Development Plan (RPJPD) Djalaluddin Salampessy (Kabid) 081247247321 Provincial Bappeda of Maluku Medium-Term Development Plan (RPJMD) Djalaluddin Salampessy (Kabid) 081247247321 2013-2018 under preparations BAPEDAL of Maluku Environmental Status (SLH) PPE (Center for Ecoregion Management) Maluku • Culture and Tourism Agency of Maluku Sectoral Plans (such as Fishery Master Plan) • RIPPDA • Zoning Plan of Coastal Areas and Small Islands • Bappeda • Dinas Kehutanan (Adzam Bandjar – Chairperson) Stakeholders and key informants for next phase - 081343342424 • BAPEDAL • Marine Conservation Areas, Marine Resources at Academic/Study Reports the Research Center of Pattimura University in Ambon (Prof. Rafael OSOK – 082199909355) Relevant environmental and social datasets •

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Baseline Data Available for Provinces in the EC

APPENDIX D Supporting information from Pre-scoping activities

Baseline Data Available for Provinces in the EC

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Baseline Data Available for Provinces in the EC

D.1. Minutes from pre-scoping workshop

MP3EI SEA

Minutes of Meeting

Meeting: Prescoping MP3EI SEA – Papua Maluku EC/2013 Date: 10 October 2013 Attendees: As attached Time: 09.00-16.00 WIB Absent : - Venue: Kayangan Room, Aston Hotel Makassar Prepared by: Yesaya, Adi Wiyana

No Issues Action/Remarks 1. Opening of the workshop by KP3EI Connectivity WG All to note (presentation)  Framework for activities  Greening MP3EI and SEA process  Expected output of the activities

2. Introduction from DHI-Integra All to note  Introduction of SEA Team  Overview of workshop agenda  Expected output of the workshop 3. Introduction of the participants List of participants as attached after the following 4. Screening for SEA video All to note 5. Workshop Session All to note a. Introduction on SEA  Overview of potentials and threats to environmental conditions from the proposed development.  Overview of the importance and principles of SEA  SEA development in Indonesia  Objective of baseline data workshop b. MP3EI SEA Project Implementation & Deliverables  Project Background, Team, Output and Scheduling  MP3EI SEA Approaches and Workplan (both for Policy and Economic Corridors)  Economic Analysis Input c. Expected output of MP3EI SEA Prescoping  Importance of Baseline Data  MP3EI SEA Database/Information System Management  Hands on Baseline Data Collection . Overview of Potential National Strategic Issues . Assignment for group work activities . Overview of plenary discussion d. More on SEA  Usual SEA steps  SEA and Planning, SEA and EIA  Next stage: Scoping!

6. Questions/concerns/feedbacks:

6a Muhammad Abdul Kahar - Bappeda Maluku Utara  SEA is expected not to be used to waive for environmental Pak Marizi comments: compliance/obligation only but to really develop The MP3EI indeed has been recommendations for preventing/mitigating the conflicts/impacts approved and the application of

D-1

No Issues Action/Remarks of development SEA should ideally be applied from  The application of MP3EI SEA was rather late as the master plan the beginning when preparing the was first issued in 2011. To what extent SEA will help to improve plan. However, we expected that by the plans and minimizing of the impacts? Will it be able to doing SEA for MP3EI now would at terminate the MP3EI projects? least provide the opportunity to  The involvement of stakeholders shall be used to help out in minimize the impacts via feedbacks improving the SEA result based on their feedbacks/inputs, not to RPJMN. just to use the attendance to confirm that the MP3EI has considered the stakeholders feedbacks.  The workshop should also give the participants opportunity to idenfity the relevant issues in Papua-Maluku 6b Alberth Nebore – CI Indonesia  Beside MP3EI, there is also a working unit for acceleration for All to note and will be considered in Papua development. How does this relate to MP3EI planning scoping the issues at the later scheme and how this planning fits into the special autonomy stage, meanwhile SEA result can (otsus) in Papua? provide the opportunities to give  For Papua case, SEA should also consider the social issues as recommendations to different environment is inherently linked to social aspects. planning scheme (MP3EI, RPJMN  Issues that also need to be taken into consideration in Papua or RPJMD). This, taken together, include issues of decentralisation and human resources capacity will influence MP3EI at different in Papua levels  Other key issues that might be relevant for SEA in Papua is the issues of Mega-biodiversity. The possibility of scoping for these issues through SEA 6c Bappeda – North Maluku  One of the issues that need to be considered in SEA is the fact All to note that Maluku is a group of archipelagic islands. Thus, some issues may only be relevant in one district and not the others  It is also a point where 3 techtonic plates meet and therefore it is very sensitive in terms of earthquake, flood and landslides. 7 Group Assignments  Division into groups and debriefing on group assignments - Identifation of issues (based on list of nation-wide issues) regarding the available data and its spatial distribution - Groups divided into two and asked to work on potential issues in province.  Group work on available data and information and data source  Group work on potential issues identification and baseline data source 8 Plenary discussion

Summary table of available data and information and data source For summary table, please see (institution, contact person, phone number and email address) Appendix B of List of Potential Key Issues Summary of list of specific issues and available data/information: 1. Human Health Participants used the preliminary 2. Livelihood national-level issues for the basis of 3. Land and soil their identification and discussions 4. Water Quality of issues in their respective regions. 5. Air Quality They omitted national-level issues 6. Forests that are not relevant to their regions, 7. Biodivesity and added new ones that are not 8. Coastal Degradation listed in the preliminiary list of 9. Environmental management national issues. 10. Mining & industries 11. Energy and waste In short, most national-level are found to be relevant to the regions, and only few new issues are added.

9. Feedback and recommendation for following workshop/activities - To improve the baseline data collection, participants suggested to meet These are all good feedbacks and invite different stakeholders as many as possible for the next activities recommendations but their

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Baseline Data Available for Provinces in the EC

No Issues Action/Remarks in order to get more comprehensive data implementation is subject to SEA - To have a better understanding of the issues and problems faced in the budget available. EC, the participants suggest that the SEA team visit all provinces and selected districts/cities where PM3EI is or will be implemented

D.2. List of pre-scoping workshop participants

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APPENDIX E List of References

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E List of References

Antaranews.com. Indonesian river pollution increases 30 percent. Accessed 24 October 2013. http://www.antaranews.com/en/news/81175/indonesian-river-pollution-increases-30-percent

Anonymous 2013. http://www.slideshare.net/aiirmc/makalah-konflik-papua. Accessed 17/12/2013.

Austin, Kemen, Stuart Sheppard, and Fred Stolle. 2012. ’Indonesia’s Moratorium on New Forest Concessions: Key Findings and Next Steps“. WRI Working Paper. World Resource Institute, Washington DC. Available online at http://www.wri.org/publication/ indonesia-moratorium-on- new-forest-concessions

Beehler 2007. Introduction to Papua, in Marshall & Beehler eds.

Casson et al. 2007 Strategies to reduce carbon emissions from the oil palm sector in Indonesia, report prepared for the World Bank.

CEPF 2013. Critical Ecosystem Partnership Fund Wallacea Biodiversity Hotspot.

http://www.cepf.net/SiteCollectionDocuments/wallacea/SOW_Wallacea_Ecosystem_Profile.pdf. Accessed 25/09/ 2013.

FES (2008) Analisis Konflik dan Rekomendasi Kebijakan Mengenai Papua. http://library.fes.de/pdf-files/bueros/indonesien/06393.pdf

Filer C and Napitupulu 2007. Driver of Biodiversity Loss: A New Guinea Initiative: Preliminary Analytical Studies, Draft Report for WWF.

Greenomics, 2013. Sinarmas expands oil palm plantations in Papuan forests. http://www.greenomics.org/main.htm. Accessed 17/12/2013.

GRM 2009. PAPUA ASSESSMENT USAID/INDONESIA Final Report.

KLH 2007 State of Environment Report in Indonesia, 2007.

Mudiyarso, Daniel; Dewi, Sonya; Lawrence, Deborah and Seymour, Frances. 2011. ’Indonesia’s forest moratorium: a stepping stone to better forest governance?‘. Working Paper 76. CIFOR, Bogor.

NORAD 2009. Environmental and Socio-Economic Baseline study – Papua, Indonesia, Study 4/2009. Evaluation Department.

Sekala et al 2008. Sekala, PCSSF, and Nordic Consulting Group, 2008. Strategic Assessment for Spatial Planning in Papua Province, Indonesia, report prepared for the World Bank by Sekala.

Sekretariat RAN-GRK_Papua (2012) Sekretariat Rencana Aksi Nasional penurunan emisi Gas Rumah Kaca_Papua. Retrieved from: http://www.sekretariat- rangrk.org/component/content/article/102-bahasa/status-provinsi/120-papuajayapura

Sekretariat RAN-GRK_Maluku (2012) Sekretariat Rencana Aksi Nasional penurunan emisi Gas Rumah Kaca_Maluku. Retrieved from: http://www.sekretariat- rangrk.org/component/content/article/9-uncategorised/133-maluku-utara

SLHE Papua 2011

SLHE Maluku 2011

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Tarigan, E.Z. and Rozak, A. (2003) Kandungan logam berat Pb, Cd, Cu, Zn dan Ni dalam air laut dan sedimen di muara Sungai Membramo, Papua dalam kaitannya dengan kepentingan budidaya perikanan. Makara, Sains, Vol. 7, No. 3, Desember 2003. Retrieved from: http://journal.ui.ac.id/index.php/science/article/download/368/364.

USAID 2009. PAPUA ASSESSMENT USAID/INDONESIA Final Report

World Bank 2001 INDONESIA Environment and Natural Resource Management in a Time of Transition

World Bank 2008. STRATEGIC ASSESSMENT FOR SPATIAL PLANNING IN PAPUA PROVINCE. World Bank.

World Bank 2009. Investing in the Future of Papua & West Papua. WB..

WWF Moluccas Moist Forests - A Global Ecoregion. http://wwf.panda.org/about_our_earth/ecoregions/molucass_moist_forests.cfm. Accessed 31/10/2013.

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