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(Sesa) Ministry of Environment and Forestry East Kalimantan Province

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(Sesa) Ministry of Environment and Forestry East Kalimantan Province Public Disclosure Authorized Public Disclosure Authorized STRATEGIC ENVIRONMENTAL AND SOCIAL ASSESSMENT (SESA) MINISTRY OF ENVIRONMENT AND FORESTRY EAST KALIMANTAN PROVINCE Public Disclosure Authorized REPUBLIC OF INDONESIA Public Disclosure Authorized TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................... I LIST OF TABLES .............................................................................................V LIST OF FIGURES ..........................................................................................VII LIST OF APPENDICES ..................................................................................VII LIST OF ACRONYMS ................................................................................... VIII 1.0 INTRODUCTION ..................................................................................... 1 1.1 BACKGROUND............................................................................................. 1 1.2 OBJECTIVE .................................................................................................. 3 1.3 SCOPE OF THE SESA.................................................................................. 3 2.0 APPROACH ............................................................................................ 4 2.1 DATA COLLECTION ..................................................................................... 5 2.2 SCREENING AND SCOPING FOR THE SESA............................................. 6 2.2.1 Formulation of Drivers of Deforestation and Forest Degradation ..................................................................................... 6 2.2.2 Identification of Environmental and Social Issues under ERP .......... 6 2.3 STAKEHOLDER ANALYSIS ......................................................................... 9 2.3.1 Stakeholder Identification ................................................................ 9 2.3.2 Stakeholder Mapping ....................................................................... 9 2.3.3 Institutional Capacity Assessment .... 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Bookmark not defined. 2.4 DATA ANALYSIS ........................................................................................ 18 2.4.1 Risk and Impact Analysis ............................................................... 20 2.4.2 Gap Analysis ................................................................................. 21 2.5 PUBLIC CONSULTATION .......................................................................... 21 2.6 LIMITATIONS .............................................................................................. 22 3.0 STRATEGIC CONTEXTS OF REDD+ IN INDONESIA ........................ 22 3.1 KEY PROCESSES OF REDD+ READINESS .............................................. 22 3.2 STRATEGIC RATIONALE .......................................................................... 29 3.3 SAFEGUARD INITIATIVES IN INDONESIA ................................................ 31 3.3.1 SIS-REDD+ Indonesia ................................................................... 31 3.3.2 Safeguards Formulation ................................................................ 32 3.4 SELECTION OF EAST KALIMANTAN PROVINCE .................................... 32 3.5 REDD+ CONSULTATION PROCESSES .................................................... 33 3.5.1 Stakeholder Identification .............................................................. 34 3.5.2 Consultation Process ..................................................................... 34 3.5.3 Key Issues ..................................................................................... 36 3.5.4 Summary of the Consultation Outcomes ....................................... 38 3.5.5 Next Plan for Consultation and EngagementError! Bookmark not defined. i 3.6 LESSONS LEARNED FROM PREVIOUS ER PILOT ACTIVITIES ............. 39 3.6.1 Policies to Protect Natural and Forest Resources .......................... 39 3.6.2 Participatory Planning and Spatial Planning .................................. 40 3.6.3 Government Capacity to Protect and Supervise Forest Areas ....... 41 3.6.4 Alternative Livelihoods, Productivity of Agriculture, and Access to Technology and Finance ............................................... 43 3.6.5 Lessons Learned on Conflict and Dispute Resolution .................... 45 4.0 DESCRIPTION OF THE ERP ............................................................... 46 4.1 COMPONENT 1: FOREST AND LAND GOVERNANCE ............................ 48 4.1.1 Sub-Component 1.1: Strengthening the licensing regime .............. 48 4.1.2 Sub-Component 1.2: Dispute Settlement ....................................... 49 4.1.3 Sub-Component 1.3: Support for the recognition of adat land ....... 50 4.1.4 Sub-Component 1.4: Strengthening village spatial planning .......... 51 4.2 COMPONENT 2: IMPROVING FOREST SUPERVISION AND ADMINISTRATION ...................................................................................... 52 4.2.1 Sub-Component 2.1: Strengthening management capacity within the State Forest Area: FMU development ............................ 52 4.2.2 Sub-Component 2.2: Strengthening provincial and district governments to supervise and monitor the implementation of sustainable Estate Crops ............................................................... 53 4.3 COMPONENT 3: REDUCING DEFORESTATION AND FOREST DEGRADATION WITHIN LICENSED AREAS ............................................ 53 4.3.1 Sub-Component 3.1. Implementation of HCV policies for Oil Palm Estates ................................................................................. 54 4.3.2 Sub-Component 3.2: Support for smallholders and Community Based Fire Management and Monitoring Systems (CBFMMS) ...................................................................... 54 4.3.3 Sub-Component 3.3: Implementation of HCV and RIL policies for Forestry Concessions .................................................. 55 4.4 COMPONENT 4: SUSTAINABLE ALTERNATIVES FOR COMMUNITIES ........................................................................................... 56 4.4.1 Sub-Component 4.1 Sustainable livelihoods.................................. 56 4.4.2 Sub-Component 4.2: Conservation partnerships ........................... 57 4.4.3 Sub-Component 4.3: Social forestry .............................................. 57 4.5 COMPONENT 5: PROJECT MANAGEMENT AND MONITORING............. 58 4.5.1 Sub-Component 5.1: Project coordination and management ......... 58 4.5.2 Sub-Component 5.2: Monitoring and evaluation ............................ 58 4.5.3 Sub-component 5.3: Program communication ............................... 58 5.0 BASELINE CONDITIONS ..................................................................... 58 5.1 GEOSPATIAL DATA QUALITY .................................................................. 58 5.2 ENVIRONMENTAL BASELINE ................................................................... 62 5.2.1 Social Forestry .............................................................................. 67 5.2.2 Forest Fire ..................................................................................... 68 5.3 SOCIAL BASELINE .................................................................................... 71 5.3.1 Demographics, Livelihoods and Socio-cultural Diversity ................ 71 ii 5.3.2 Forest and Local Communities ...................................................... 75 5.3.3 Land Tenure and Natural Resource Conflicts and Disputes ........... 76 5.3.4 Relevant Gender Aspects in the ER Areas .................................... 82 5.4 ECONOMIC ASSESSMENTS RELATED TO THE ERP .............................. 83 5.4.1 Economic Situation in East Kalimantan ......................................... 83 5.4.2 Political Economy of East Kalimantan............................................ 84 5.5 ENVIRONMENTAL AND SOCIAL RISK INDICATORS .............................. 86 5.5.1 Scenario Analysis .......................................................................... 86 5.5.2 Environmental and Social Components ......................................... 88 5.5.3 Environmental and Social Indicators .............................................. 88 6.0 POLICY AND REGULATION FRAMEWORK ....................................... 91 6.1 GOI REGULATIONS ................................................................................... 91 6.2 REGULATORY ENFORCEMENT AND CAPACITY ASSESSMENT ........... 95 6.3 IMPLEMENTATION OF SAFEGUARD POLICIES ...................................... 98 6.4 GAP/COMPATIBILITY ANALYSIS ............................................................. 99 7.0 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT .............. 108 7.1 COMPONENT 1: FOREST AND LAND GOVERNANCE .......................... 108 7.1.1 Sub-component 1.1: Strengthening the licensing regime ............. 109 7.1.2 Sub-component 1.2: Dispute settlement ...................................... 111 7.1.3 Sub-component 1.3: Support the recognition of customary (adat) land ................................................................................... 113 7.1.4 Sub-component 1.4: Strengthening village spatial planning ......... 114 7.2 COMPONENT 2: IMPROVING FOREST SUPERVISION AND ADMINISTRATION .................................................................................... 115 7.2.1 Sub-component 2.1: Strengthening management capacity within the state forest area : FMU development ........................... 115
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