Indigenous Peoples Development Planning Document

Indigenous Peoples Development Plan Document Stage: Final Project Number: 38919 July 2006

INO: Tangguh LNG Project

Prepared by BP Berau Limited for the Asian Development Bank (ADB).

The indigenous peoples development plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

BP Tangguh Integrated Social Program BP Tangguh Project BP Berau, Ltd. www.bp.com

Perkantoran Hijau Arkadia , Tower D Jalan T.B. Simatupang Kav 88, Jakarta 12520 Tel: +62.(0)21.7883.8000 Fax: +62.(0)21.7883.8333 Contents

List of Figures xi

List of Tables xii

Acronyms and Indonesian Terms xiv

Summary xxi

The Project...... xxi Integrated Social Strategy...... xxi Fulfilling ADB Policy ...... xxii Project Context ...... xxii Project Impacts ...... xxiii Project Consultations ...... xxiv Specific Indigenous People’s Issues ...... xxiv ISP Component Programs (2006-2010)...... xxv Implementation Framework...... xxvi Budget ...... xxvi ISP Monitoring and Evaluation ...... xxvi

SECTION I: INTRODUCTION The Tangguh Project’s Integrated Social Program and ADB’s Policy on Indigenous Peoples Introduction 1

1 1. Introduction...... 1

1 .2 ISP Compliance with IPDP Requirements...... 3

1 .3 Policy and Guidelines on Indigenous Peoples...... 3 1 .3 1. Rationale for Developing Indigenous Peoples Plans ...... 3

1 .3 .2 The Definition of Indigenous People...... 4

1 .3 .3 Policy Requirements and Guidelines ...... 5

1 .3 .4 Guidelines for Developing IPDPs ...... 5

Contents  1 .4 The Tangguh Project Integrated Social Program (ISP)...... 6 1 .4 1. Introduction...... 6 1 .4 .2 Defining the Project-Affected People...... 6 1 .4 .3 Evolution of ISP...... 7 1 .4 .4 ISP Component Programs...... 10 1 .4 .5 Time Frame ...... 10

SECTION II: CONTEXT Baseline Information and Consultation 2 The Tangguh Project 17

2 1. Context...... 17

2 .2 Development and Operations ...... 18 2 .2 1. The Tangguh Project...... 18 2 .2 .2 Construction Phase Activity Description...... 20 2 .2 .3 Operational Phase Activity Description...... 21

2 .3 Project Impacts ...... 21

2 .4 Conclusion...... 22

3 Legal Framework 23

3 1. Introduction...... 23

3 .2 Recognition of Indigenous People...... 24 3 .2 1. . The Unitary State of Indonesia...... 24

3 .2 .2 Adat Communities and Rights ...... 25 3 .2 .2 1 . The 1945 Constitution ...... 25 3 .2 .2 .2 The Human Rights Law...... 25 3 .2 .2 .3 Minister of Agrarian Affairs...... 26 3 .2 .2 .4 The Regional Autonomy Law ...... 26 3 .2 .2 .5 The Papuan Special Autonomy Law (PSAL)...... 26

3 .2 .3 Education...... 27 3 .2 .4 Adat Institutions...... 28 3 .2 .5 Social and Family Welfare ...... 28 3 .2 6. The Environment ...... 29 3 .2 7. International Conventions on Indigenous People...... 30

3 .3 Indigenous People and Natural Resources ...... 30 3 .3 1. The Constitution...... 30 3 .3 .2 General Provisions on Natural Resources in the PSAL...... 31 3 .3 .2 1 . Authority of the Papuan Government over Natural Resources...... 31 3 .3 .2 .2 The Exploitation of Natural Resources ...... 32

ii BP Tangguh Integrated Social Program 3 .3 .3 Land...... 32 3 .3 .3 1 . The Basic Agrarian Law...... 33 3 .3 .3 .2 Regulation of the Minister of Agrarian Affairs 5 of 1999...... 33 3 .3 .3 .3 PSAL Provisions on Land ...... 34

3 .3 .4 Forest...... 34 3 .3 .4 1 . Authority over Forests ...... 34 3 .3 .4 .2 Types of Forests ...... 35 3 .3 .4 .3 Adat Forest ...... 35 3 .3 .4 .4 Community Forest...... 35 3 .3 .4 .5 Adat Payments for Trees...... 36

3 .3 .5 Marine ...... 36 3 .3 .5 1 . Traditional Fishermen...... 37

3 .3 6. Oil and Gas Resources...... 37

3 .3 7. Water...... 38

3 .3 .8 Revenue from Natural Resource Extraction...... 38 3 .3 .8 1 . Regional Autonomy ...... 38 3 .3 .8 .2 Special Autonomy ...... 39

3 .4 General Legislation ...... 39 3 .4 1. The National Development Programs (PROPENAS) ...... 40 3 .4 1. 1 . Priorities ...... 40 3 .4 1. .2 Economic Development ...... 40 3 .4 1. .3 Political Development...... 41 3 .4 1. .4 Regional Development ...... 41 3 .4 1. .5 Development of Natural Resources and Environment...... 41

3 .4 .2 Regional Autonomy Laws...... 41

3 .4 .3 Human Rights ...... 42 3 .4 .3 1 . Scope of Human Rights...... 42 3 .4 .3 .2 Obligation to Uphold Human Rights...... 42 3 .4 .3 .3 National Commission on Human Rights ...... 42 3 .4 .3 .4 Rights of the National Commission...... 43 3 .4 .3 .5 Ability to Make a Complaint...... 43 3 .4 .3 6 . Public Participation in Human Rights ...... 43

3 .4 .4 Migration...... 43 3 .4 .4 1 . Registration ...... 43 3 .4 .4 .2 Registration Documents...... 44 3 .4 .4 .3 Registration Requirements for Departure/Arrival of a Resident...... 44

3 .4 .5 Manpower ...... 44

3 .4 6. Village Administration ...... 45 3 .4 6. 1. Structure of Village Administration...... 45 3 .4 6. .2 Head of Village ...... 45 3 .4 6. .3 Village Representative Board...... 46 3 .4 6. .4 Village Community Institution ...... 46 3 .4 6. .5 Village Income and Budget...... 46

Contents iii 3 .4 7. Transmigration ...... 46 3 .4 7. 1. Programs carried out from 1958 until 1972...... 46 3 .4 7. .2 The 1972 Program...... 47 3 .4 7. .3 The 1997 Program...... 48

3 .4 .8 Adat Culture ...... 49

3 .4 .9 Cultural Property...... 49 3 .4 .9 1. Ownership...... 49 3 .4 .9 .2 Registration, Protection and Maintenance ...... 49 3 .4 .9 .3 Support and Supervision ...... 50

3 .4 10. Population and Development of Family Welfare...... 50

4 The Project Setting 51

4 1. The Political Context...... 51

4 .2 The Bird’s Head Peninsula of Papua ...... 52

4 .3 Kabupaten Teluk Bintuni...... 55 4 .3 1. Political Administration ...... 55

4 .3 .2 Environment ...... 56

4 .3 .3 Social and Economic Profile...... 58 4 .3 .3 1. Access and Transportation...... 58 4 .3 .3 .2 Infrastructure, Services and Utilities...... 58 4 .3 .3 .3 Demography ...... 60 4 .3 .3 .4 Religious Affiliation ...... 62 4 .3 .3 .5 Health ...... 62 4 .3 .3 6. Education...... 65 4 .3 .3 7. Industrial and Commercial Development...... 66

4 .4 Tribes of Kabupaten Teluk Bintuni...... 69 4 .4 1. Tribal Groups...... 69 4 .4 .2 Tribal, Clan and Village Leadership...... 70

4 .4 .3 Household, Family and Village Structure...... 71

4 .4 .4 Village Infrastructure, Services and Utilities...... 72

4 .4 .5 Custom (Adat) and Traditional Rights (Hak Ulayat)...... 72

4 .4 6. Livelihood Systems...... 73

4 .4 7. Village-level Commerce and Trade...... 74

4 .4 .8 Response to Change ...... 74

4 .5 Conclusion...... 76

iv BP Tangguh Integrated Social Program 5 Public Consultations, Grievance Procedures and Disclosures 77

5 . 1 Introduction ...... 77

5 .2 Consultation...... 77 5 .2 1. Pre-Project Consultations...... 77

5 .2 .2 Ongoing Consultations...... 83

5 .3 Building Participation through Capacity-building...... 84

5 .4 Grievance Tracking and Resolution...... 84

5 .5 Public Disclosure...... 86

5 6. Conclusion...... 86

SECTION III: ASSESSING PROJECT IMPACTS

6 The Tangguh Project Impacts 89

6 1. Introduction...... 89

6 .2 Project Benefits...... 89

6 .3 Adverse Impacts ...... 91 6 .3 1. Direct Adverse Impacts...... 91

6 .3 .2 Potential Project-induced Adverse Impacts...... 93

6 .4 Conclusion...... 96

SECTION IV: PROGRAM DESCRIPTION AND IMPLEMENTATION

7 Project Positions and Indigenous People’s Issues 99

7 1. Introduction...... 99

7 .2 Boundaries of Project Responsibility ...... 100

7 .3 Human Rights and Security...... 100

7 .4 Gender...... 101

7 .5 Compliance with Legislation...... 102

7 6. Papuan Autonomy...... 102

7 7. Papuan Identity ...... 103

7 .8 Recognition of Customs (Adat) and Traditional Rights (Hak Ulayat) . . . 103

7 .9 Cultural Sites...... 105

Contents  7 10. Compensation ...... 106

7 11. Land Tenure...... 107

7 12. Formalizing Relationships and Agreements ...... 107

7 13. Minimizing Migrant Workforce Interactions with Local Communities . 108

7 14. Relations Between Locals and Transmigrants...... 108

7 15. Contractor Compliance...... 109

7 16. Conclusion...... 109

8 ISP Component Description 111

8 1. Introduction...... 111

8 .2 Governance and Revenue Management ...... 111 8 .2 1. Context ...... 111 8 .2 .2 Objectives ...... 113 8 .2 .3 Activities...... 113 8 .2 .4 Implementation...... 115

8 .3 Civil Society Strengthening...... 116 8 .3 1. Introduction...... 116

8 .3 .2 Strengthening of Civil Society in the Bird’s Head Region of Papua . . . . . 116 8 .3 .2 1. Context ...... 116 8 .3 .2 .2 Objectives...... 116 8 .3 .2 .3 Activities...... 116 8 .3 .2 .4 Implementation...... 117

8 .3 .3 Strengthening Adat Institutions in Kabupaten Teluk Bintuni ...... 118 8 .3 .3 1. Context ...... 118 8 .3 .3 .2 Objectives...... 119 8 .3 .2 .3 Activities...... 119 8 .3 .3 .4 Implementation...... 120

8 .4 Bird’s Head Business Empowerment...... 121 8 .4 1. Context ...... 121 8 .4 .2 Objectives ...... 121 8 .4 .3 Activities...... 121 8 .4 .4 Implementation...... 123

8 .5 Management of Workforce Recruitment and Industrial Affairs. . . . . 123 8 .5 1. Context ...... 123 8 .5 .2 Objectives ...... 126 8 .5 .3 Activities...... 126 8 .5 .4 Implementation...... 127

vi BP Tangguh Integrated Social Program 8.6 Mitigation of In-migration and Adverse Induced Impacts...... 127 8.6.1 Context ...... 127 8.6.2 Objectives ...... 128 8.6.3 Activities...... 128 8.6.4 Implementation...... 130

8.7 Government and Civil Society in Kabupaten Teluk Bintuni...... 132 8.7.1 Introduction...... 132

8.7.2 Strengthening Kabupaten-level Government...... 132 8.7.2.1 Context ...... 132 8.7.2.2 Goal...... 132 8.7.2.3 Objectives...... 132 8.7.2.4 Activities...... 132 8.7.2.5 Implementation...... 133

8.7.3 District- and Village-level Governance...... 133 8.7.3.1 Context ...... 133 8.7.3.2 Goal ...... 133 8.7.3.3 Objectives...... 133 8.7.3.4 Activities...... 134 8.7.3.5 Implementation...... 135

8.8 Integrated Community-based Security...... 135 8.8.1 Context ...... 135

8.8.2 Goal...... 136

8.8.3 Objectives ...... 136

8.8.4 Activities...... 136

8.8.5 Implementation...... 137

8.9 Health...... 137 8.9.1 Context ...... 137

8.9.2 Goals ...... 138

8.9.3 Objectives ...... 138

8.9.4 Activities...... 139

8.9.5 Implementation...... 143

8.10 Basic Education...... 143 8.10.1 Context ...... 143

8.10.2 Objectives ...... 146

8.10.3 Activities...... 146

8.10.4 Implementation...... 147

8.11 Vocational Training ...... 149 8.11.1 Objectives ...... 149

8.11.2 Activities...... 149

8.11.3 Implementation...... 150

Contents vii 8.12 Women’s Empowerment...... 151 8.12.1 Introduction...... 151

8.12.2 Context ...... 151

8.12.3 Goal...... 152

8.12.4 Objectives ...... 152

8.12.5 Activities...... 152

8.12.6 Implementation...... 154

8.13 Microfinance and Microenterprise Development ...... 155 8.13.1 Context ...... 155

8.13.2 Goal...... 155

8.13.3 Objectives ...... 155

8.13.4 Activities...... 155

8.13.5 Implementation...... 158

8.14 Community Development – Community Action Plans...... 159 8.14.1 Context ...... 159

8.14.2 Objectives ...... 159

8.14.3 Program Descriptio�n...... 159

8.15 Land Acquisition and Resettlement Action Plan (LARAP) ...... 161 8.15.1 Context ...... 161

8.15.2 Objectives ...... 161

8.15.3 Activities...... 162

8.15.4 Implementation...... 162

8.16 Conclusion...... 162 9. Project Implementation 163

9.1 Introduction...... 163

9.2 Implementation Framework...... 163

9.3 Project Resources ...... 165 9.3.1 Human Resources - The ISP Team...... 165 9.3.1.1 Overview...... 165 9.3.1.2 Roles and Responsibilities ...... 167

9.3.2 Other Resources ...... 168

9.4 Implementation Partners...... 168 9.4.1 Government...... 168

9.4.3 NGOs ...... 170

9.4.4 Community Participation ...... 170

9.5 Conclusion...... 171

viii BP Tangguh Integrated Social Program 10. ISP Budget 173

10.1 Introduction...... 173

10.2 Budget ...... 173 10.2.1 Total Budget ...... 173

10.2.2 Program Budgets...... 173

10.2.3 Financing...... 174

10.2.4 Sustainability...... 174

10.3 Conclusion...... 175

11 Monitoring and Evaluation 179

11.1 Introduction...... 179

11.2 Monitoring and Evaluation Framework...... 179

11.3 Defining Program M&E Indicators...... 180

11.4 The Monitoring and Evaluation (M&E) Unit...... 181

11.5 External Monitoring and Evaluation ...... 182

11.6 Conclusion...... 182

Contents ix  BP Tangguh Integrated Social Program List of Figures

Figure 1 1. Location of Tangguh LNG Project...... 2

Figure 2 1. Location of Tangguh Project License Blocks ...... 19

Figure 2 .2 Location of Main Natural Gas Reservoirs in Berau and Bintuni Bays. . . . . 19

Figure 4 1. The Bird’s Head Peninsula of Papua...... 52

Figure 4 .2 Administrative Map of Kabupaten Teluk Bintuni...... 56

Figure 4 .3 Land Cover of Kabupaten Teluk Bintuni ...... 57

Figure 4 .4 Profile of Mangrove Forests in Teluk Bintuni...... 57

Figure 4 .5 Access and Transport to Kabupaten Teluk Bintuni...... 59

Figure 4 6. Forestry Concessions in Kabupaten Teluk Bintuni...... 69

Figure 4 7. Distribution of Tribal Groups in Kabupaten Teluk Bintuni...... 70

Figure 4 .8 Livelihood Sources and Potential of Natural Resources, Kabupaten Teluk Bintuni...... 75

Figure 4 .9 Primary Income Sources, Kabupaten Teluk Bintuni...... 75

Figure 5 1. Outline of Tangguh Project SEIA Public Consultation Process...... 78

Figure 6 1. LNG Construction-Related Workforce Requirements...... 90

Figure 8 1. Project LNG Construction Workforce Requirements...... 124

Figure 9 1. ISP Team Organizational Chart...... 166

Figure 11 1. ISP Internal Monitoring and Evaluation Framework...... 180

List of Figures xi List of Tables

Sum Table 1 Component Programs of Project Integrated Social Program (2006-2010) . . . xx

Table 1 1. Evolution of Tangguh Project Social Development Programming...... 10

Table 1 .2 Summary of ISP Programs and Objectives...... 11

Table 4 1. Area of Regencies and Number of Districts, Bird’s Head of Papua...... 53

Table 4 .2 Demographic Statistics by Regency, Bird’s Head of Papua...... 54

Table 4 .3 Number of Villages and Households by Regency, Bird’s Head of Papua ...... 54

Table 4 .4 Profile of Bintuni...... 59

Table 4 .5 Profile of Babo...... 60

Table 4 6. Population Data, Kabupaten Teluk Bintuni...... 60

Table 4 7. Districts and Villages of Kabupaten Teluk Bintuni...... 61

Table 4 .8 Transmigration Villages in Kabupaten Teluk Bintuni...... 62

Table 4 .9 Key Health Indicators ...... 64

Table 4 10. Maternal and Child Heath Indicators ...... 64

Table 4 11. Indicators of Sanitation ...... 64

Table 4 12. Educational Facilities, Kabupaten Teluk Bintuni ...... 65

Table 4 13. Status of Basic Education, Kabupaten Teluk Bintuni...... 65

Table 4 14. State of Lower Secondary Education, Kabupaten Teluk Bintuni...... 65

Table 4 15. Industry and Commercial Enterprises in Kabupaten Teluk Bintuni...... 67

Table 4 16. Number of Villages and Population by Tribal Group, Kabupaten Teluk Bintuni ...... 70

Table 5 1. Summary of Pre-Project Village Consultations Implemented, July‑August 2000 ...... 79

Table 5 .2 Public Concerns and Identification of Potential Impacts...... 80

Table 8 1. List of ISP Programs...... 112

Table 8 .2 Impacts Addressed by ISP Programs ...... 112

Table 8 .3 Activity Schedule for Governance and Revenue Management ...... 115

Table 8 .4 Activity Schedule for Civil Society Strengthening Program...... 118

Table 8 .5 Activity Schedule for Strengthening of Adat Institutions in Kabupaten Teluk Bintuni...... 120

Table 8 6. Activity Schedule for Bird’s Head Business Empowerment Program . . . . 123

Table 8 7. Construction of Workforce Targets ...... 124

Table 8 .8 Localization Targets for Operation Phase Workforce...... 125

xii BP Tangguh Integrated Social Program Table 8.9 Activity Schedule for Management of Workforce Recruitment and Industrial Affairs...... 127

Table 8.10 Activity Schedule for Mitigation of In-migration and Adverse Induced Impacts ...... 131

Table 8.11 Activity Schedule for Strengthening of Kabupaten Government ...... 133

Table 8.12 Activity Schedule for Village-Level Governance ...... 135

Table 8.13 Activity Schedule for Integrated Community-based Security...... 137

Table 8.14 Activity Schedule for Health Program...... 144

Table 8.15 Activity Schedule for Education Support Program ...... 148

Table 8.16 Activity Schedule for Microfinance and Micro- and Small Enterprise. . . . . 158 Development

Table 9.1 Summary of Primary Responsibilities for ISP Program Implementation. . . 164

Table 9.2 Breakdown of ISP Staff by Roles and Responsibility...... 166

Table 9.3 Dependence of ISP Program Implementation on Government Support . . . 169

Table 10.1 Summary of Integrated Social Program Budget (2006-2010) ...... 176

Table 11.1 M&E Indicators for Assessing ISP Program Delivery...... 183

List of Tables xiii Acronyms and Indonesian Terms

adat local and traditional institutions, customs, laws and dispute resolution systems used in many parts of Indonesia

ADB Asian Development Bank – a Tangguh Project lender. Tangguh’s Indigenous Peoples Development Plan (outlined in this document) as well as the Project’s Indigenous Peoples Development Framework (separate document) meet the requirements of ADB’s Policy on Indigenous Peoples.

AFB Acid Fast Bacilli – refers to test for active tuberculosis infections

AMDAL Analisis Mengenai Dampak Lingkungan – Integrated Environmental and Social Impact Assessment. The AMDAL has three components, namely the assessment (ANDAL), the mitigation plans (RKL) and the monitoring and compliance plan (RPL). An AMDAL describes the entire process including the ANDAL, RKL and RPL. The AMDAL serves to identify and evaluate potential environmental and social impacts generated by a proposed project and to develop appropriate management and monitoring programs to prevent, eliminate or minimize negative impacts and maximize positive impacts.

ANDAL Analisa Dampak Lingkungan – Environmental Impact Analysis

ARCO Atlantic Richfield Corp, Inc.

BAL Basic Agarian Law (of Indonesia), 1960

BAPERKAM Badan Perwakilan Kampung – legislative arm of village government

BAPPEDA Badan Perencanaan Pembangunan Daerah – Local Development Planning Board

BAPEDAL Badan Pengendalian Dampak Lingkungan – �����������������������������������������Indonesian Environment Impact Management Agency; in 2002, BAPEDAL was dissolved by Presidential Decree with certain authorities transfered to the State Minister for Environment Office

BAPPENAS Badan Perencanaan Pembangunan Nasional – ����������������������������������National Development and Planning Agency

BG British Gas

BHA Bird’s Head Alliance – name used to describe a private sector/public sector alliance (referred to as a Global Development Alliance, or GDA, in USAID parlance) that brought together USAID, BP, the University of Papua, local and international NGOs and other development agencies in developing and implementing programs across seven sectors in the Bird's Head of Papua from 2002–2005. The BHA was seen as an activity that supported the Diversified Growth Strategy (DGS).

BLK Balai Latihan Kerja – Government Vocational Training Centre implemented under the Department of Manpower

BPMIGAS Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas – National Upstream Oil and Gas Implementing Agency, the legal Government of Indonesia partner in the Tangguh Project

BPR Bank Perkreditan Rakyat – a credit bank providing services to local communities

BPS Biro Pusat Statistik – ����������������������������������������������������������������Central Board of Statistics, Indonesian government body charged with collecting and managing statistical data

BRI Bank Rakyat Indonesia – a state-enterprise bank

CAP Community Action Plan – the DAV support program approach to faciliating community- driven development projects in Directly Affected Villages

CCPR Covenant on Civil and Political Rights

xiv BP Tangguh Integrated Social Program CEMSED Centre for Micro and Small Enterprise Dynamics, University of Satya Wacana (Central Java) – research institution that focuses on the development of small and medium enterprises; an ISP research and implementation partner

CLGI See YIPD/CLGI

ComRel Community Relations – the ��������������������������������Tangguh Project operational unit responsible for communication to and from stakeholder communities and for facilitating access to those communities for development program implementation

CSO civil society organization

CSW commercial sex worker

DAV Directly Affected Village – term used to describe nine villages which, for various reasons, were identified as directly affected by the development of the Project. The ISP DAV recognition program is providing development assistance to these villages in an effort to mitigate negative impacts and/or promote socio-economic development.

DGS Diversified Growth Strategy – a strategy that promotes the use of income from one industry and location (the Tangguh Project) to drive growth in many sectors and industries across a broad region (the Bird's Head Peninsula and Papua). The strategy has been adopted by regency and provincial governments in Papua and is also supported at the national level. Development agencies and ISP/Tangguh support the DGS by providing support for various sectoral programs including revenue management, spatial planning, strengthening of governance, Bird’s Head business empowerment, and civil society strengthening. The Tangguh Project is also implementing workforce recruitment policies that prioritize local hires and limit impacts of the non-local workforce upon Project-area communities.

DepKes Departemen Kesehatan – government health department

EPC Engineering, Procurement and Construction – general term to describe the tendering of contracts for engineering- and construction-related activities

ESIA Environmental and Social Impact Assessment (see also SEIA)

FGD focus group discussion

FHI Family Health International – independent nonprofit organization that works to prevent HIV/AIDS and improve reproductive health; implementation partner for Tangguh ISP

GDA Global Development Alliance – a USAID-driven partnership model that links governments, businesses and civil society through public sector/private sector alliances with the aim of stimulating economic growth, developing businesses and workforces, addressing health and environmental issues, and expanding access to education and technology

GIS Geographical Information System

GOI Government of Indonesia

GR Government Regulation, known locally as Peraturan Pemerintah (PP) hak ulayat Indonesian term describing a local community's traditional rights to natural resources

HPH Hak Pengusahaan Hutan – a forestry concession issued by Indonesian government

HSE Health, Safety and Environment – reference to standards on health, safety and environment and/or the Tangguh unit responsible for building awareness, maintaining and monitoring and enforcing application of these standards

ICBS Integrated Community-based Security

IEC information, education and communication

IFC International Finance Corporation

Acronyms and Indonesian Terms xv IFC PENSA IFC’s Program for Eastern Indonesia Small and Medium Enterprise Assistance – an implementation partner in Tangguh’s Bird’s Head Business Empowerment program

IHPCP Indonesia HIV/AIDS Prevention and Care Project, sponsored by AusAID

ILO International Labour Organization – UN specialized agency which seeks the promotion of social justice and internationally recognized human and labour rights. ILO Conventions 107 and 169 address the rights of Indigenous Peoples within independent countries; Indonesia has signed neither.

IP Indigenous People – refer to Section 1.3 (pg 3) for definitions, policy initiatives and relevance in Tangguh work area; Section 3.2 (pg 24) for Papuan, national and international recognition; Section 3.3 (pg 30) for legal issues related to natural resource use; Section 4.4 (pg 69) for a description of tribal groups living in Bintuni Bay, and Section 7.8 (pg 103) for Tangguh’s position on indigenous institutions, rights and heritage.

IPDF Indigenous Peoples Development Framework – Under certain circumstances a project is required to develop an IPDF as a companion document to its IPDP. The IPDF describes the project approach to assessing and mitigating the effects of ongoing change on the validity and relevance of the IPDP as well as outlining a procedure for developing iterations of the IPDP where project development and operations occurs over a time period in excess of normal planning cycles.

IPDP Indigenous Peoples Development Plan – a project’s specific set of plans with respect to Indigenous People impacted or potentially impacted by project development. The����������� Tangguh Project’s Integrated Social Program (ISP) 2006-2010 (i.e., this document) meets all the requirements of an IPDP as defined by ADB Indigenous Peoples Policy.It������������������� (i) promotes the participation of Indigenous People in Project preparation and implementation; (ii) ensures benefit from development interventions that affect Indigenous People and (iii) provides effective safeguards against adverse impacts.

IPK Izin Pemanfaatan Kayu – tree-cutting permit

IPP Indigenous Peoples Plan – general term describing a Project’s plans to address actual or potential impacts on Indigenous Peoples. Typically an IPP will comprise an IPDP although under certain circumstances an IPDF will be developed as a companion document.

ISP Integrated Social Program – refers to an implementation unit within the Tangguh Project and the social-economic development programs being managed by the unit. There are currently 14 ISP programs all of which contribute to the broad goal of enhancing and broadening positive social impacts associated with the Project and avoiding or mitigating negative social impacts. See the ISP Summary (pg xxv) and Table 1.2 (pg 11) for summaries of ISP programs and Chapter 8 (pg 111) for detailed program descriptions.

ISS Integrated Social Strategy – former name for the Tangguh Project's Integrated Social Program, in use between 2001–2004

IUPHHK Ijin Usaha Pemanfaatan Hasil Hutan Kayu – new form of forestry concession license issued in Papua

KADIN Kamar Dagang dan Industri – the Indonesian Chamber of Commerce

KJP consortium comprising Kellogg Brown & Root – Japan Gas Corporation – Pertafinikki (KJP) to whom the bid for construction of the Tangguh LNG plant has been awarded

KK Kartu Kekuarga – family card; each head of household in Indonesia is obliged to possess a family card stating number, identity, and status of the members of the family

KPAD Komisi Penanggulangan AIDS Daerah – Regional AIDS Prevention Committee; an ISP implementation partner

KPC Knowledge, Practice and Coverage survey used to gauge sociological indicators, employed by TCHU to monitor practices related to health

KTP Kartu Tanda Penduduk – standard residential identity card used in Indonesia

xvi BP Tangguh Integrated Social Program KSP Kelompok Simpan Pinjam – a village-level micro-saving initiative typically established in remote villages without access to more traditional banking services

LARAP Land Acquisition and Resettlement Action Plan – the Tangguh Project Resettlement Action Plan (RAP) describing the involuntary resettlement impacts of the Project

LGSP Local Government Support Program – nation-wide program supported by USAID; entry and implementation into the Bird’s Head supported through a Global Development Alliance (GDA) with Tangguh

LKD Lembaga Kemasyarakatan Desa – village community institution

LMA Lembaga Masyarakat Adat – �����������������������������������������������������������cultural law institution working at village-, district- or regency-level

LNG liquefied natural gas

LSE local security enterprise

M&E monitoring and evaluation

MCH refers to ISP’s Maternal and Child Health program

MOU memorandum of understanding

MPTC Multi-purpose Training Centre – used for Tangguh Project vocational training

MRP Majelis Rakyat Papua – Papuan People’s Assembly, a representative government body established in late 2005 as a key provision of the Papuan Special Autonomy Law mtpa million tons per annum nagari local term for native land of the Minangkabau people of West Sumatra

NGO non-governmental organization

NOPPEN Nomor Pokok Penduduk – resident registration number used throughout Indonesia

OGM oil, gas and mining – refernce to economic sector

PCI Project Concern International – independent nonprofit organization working to improve health and alleviate poverty; an ISP implementation partner

PD Presidential Decree, known locally as Dekrit Presiden

PEMCU Pre-employment Medical Check-up

PerDa Peraturan Daerah – local government regulation

Perdasi Peraturan Daerah Provinsi – Provincial Regional Regulation

Perdasus Peraturan Daerah Khusus – Special Regional Regulation

PERTAMINA Perusahaan Pertambangan Minyak dan Gas Bumi Negara – the Indonesian state oil and gas company

Posyandu Pos Pelayanan Terpadu – a village-level integrated maternal and child health care unit

PPE personal protective equipment

PROPENAS Program Pembangunan Nasional – National Development Program

PSAL Papuan Special Autonomy Law

PSC Production Sharing Contract

PT Perusahaan Terbatas – an Indonesian limited liability corporation

Pusham UII Pusat Studi Hak Asasi Manusia Universitas Islam Indonesia – Center for Human Rights Studies of the Islamic University of Indonesia

Puskesmas Pusat Kesehatan Masyarakat – district-level clinic

Acronyms and Indonesian Terms xvii PTJO Panata-Thiess Joint Operations – the contractor for construction of Tanah Merah Baru (one of two villages built to support the relocation of the Tanah Merah village community). PTJO represents a joint operation bringing together an Indonesian and an Australian construction company.

RAP Resettlement Action Plan

RKL Rencana Pengelolaan Lingkungan – Environmental Management Plan, a component of the AMDAL that sets out the plans to mitigate a project's environmental and social impacts

RPL Rencana Pemantauan Lingkungan – Environmental Monitoring Plan, a component of the AMDAL that sets out the plans to monitor a project's compliance with the RKL

SD Sekolah Dasar – primary school

SEIA Social and Environmental Impact Analysis

SKRT Survey Kesehatan Rumah Tangga – national household health survey

SMA Sekolah Menengah Atas – high school

SME small and medium enterprise

SMP Sekolah Menengah Pertama – junior high school

SPAs Sales Purchase Agreements

SP Suaka Pemukiman – a t����������������������������������������������������������������erm used to describe a transmigration settlement prior its their integration into local administration. Typically, transmigration settlements located in one area are referred to as SPI, SPII, etc

STD sexually transmitted disease

STI sexually transmitted infection

SUPM Sekolah Usaha Perikanan Menengah – a middle-secondary school dedicated to development of the fisheries sector

SUSENAS National Socio-economic Survey, a household survey conducted annually by Indonesia’s Central Board of Statistics

TCHU Tangguh Community Health Unit – ������������������������������������������������������the operational unit of the Integrated Social Program responsible for design and implementation of development and assistance programs in the health sector

TIAP Tangguh Independent Advisory Panel – a body of international advisors contracted to provide external challenge and advice to BP on the social, political and environmental aspects of the Tangguh LNG Project

TMB Tanah Merah Baru, the site and newly constructed settlement to which 101 Tanah Merah households relocated, making way for construction of Tangguh LNG facilities

TOR Terms of Reference

UN United Nations

UNCEN Universitas Cenderawasih – Cenderawasih University; branches in Jayapura and Manokwari; a partner for research, implementation and monitoring of ISP programs

UNDP United Nations Development Program – a key partner with Tangguh in the Bird’s Head Diversified Growth Strategy; Tangguh’s financial support for UNDP Capacity 2015 – Partnerships for Sustainable Development in Papua facilitates implementation of ISP initiatives to strengthen regional governance, business and civil society

UNIPA Universitas Negeri Papua – The University of Papua based in Manokwari, Papua; a partner for research, implementation and monitoring of ISP programs

xviii BP Tangguh Integrated Social Program USAID United States Agency for International Development

VEDC Vocational Education Development Centre, a Java-based organization providing vocational training services

VHWs village health workers – commuity menbers trained by the Tangguh Community Health Unit to help improve access and quality of health service throughout Kabupten Teluk Bintuni

WB World Bank – a source of policies and guidelines pertaining to asessment and mitigation of the Tangguh Project’s environment and social impacts

YIPD/CLGI Yayasan Inovasi Pemerintahan Daerah – an independent nonprofit organization that focuses efforts on strengthening the managerial capacity of local governments in Indonesia. The operating unit responsible for implementing YIPD goals is the Center for Local Government Innovation (CLGI). YIPD/CLGI is a key implementation partner for Tangguh ISP’s governance strengthening programs.

YPK Yayasan Persekolahan Kristen – Christian Schools Association, an NGO operating primary and secondary schools in Papua. Direct support for YPK in Bintuni Bay helps Tangguh ISP meet goals to improve educational access and participation in DAVs.

YPPK Yayasan Pendidikan dan Persekolahan Katolik – Catholic Education and Schools Association, an NGO operating primary and secondary schools in Papua. Direct support for YPPK in Bintuni Bay helps Tangguh ISP meet goals to improve educational access and participation in DAVs.

Acronyms and Indonesian Terms xix xx BP Tangguh Integrated Social Program SUMMARY Integrated Social Program 2006-2010 Tangguh LNG Project

The Project

The Tangguh Liquefied Natural Gas (LNG) Project is being developed in Berau and Bintuni Bays in the Bird’s Head Peninsula of Papua, Indonesia’s easternmost province, approximately 3,200 km east of Indonesia’s capital of Jakarta. The Project will extract natural gas from large offshore reservoirs and pipe it to an LNG plant for conversion to LNG after which the LNG will be exported to markets in the Asia Pacific region and beyond. Construction commenced in 2004 and is scheduled to be completed in 2008. The Project as a whole is anticipated to have an operational lifespan of up to 40 years.

Integrated Social Strategy

The Project will have significant direct and induced socio-economic impacts on the Bay communities and more generally the Bird’s Head of Papua and the province as a whole. The main locus of Project impacts is Kabupaten (Regency) Teluk Bintuni. The total regency population numbers nearly 40,000 with indigenous Melanesians (in the Moskona, Sough, Sebyar-Kamberan, Wamesa, Kuri, Irarutu, and Sumuri tribes) comprising nearly 60% and the rest a transmigrant population from elsewhere in Indonesia.

In 2002 the Tangguh Project completed an Environmental and Social Impact Analysis (AMDAL). The AMDAL established the Project’s environmental and socio-economic development commitments and the framework by which they are to be achieved. Within the Project, the Integrated Social Program (ISP) Unit was established to develop and implement the policies and programs that together meet the social, economic and cultural commitments set out in the AMDAL. At the time of AMDAL approval, the ISP identified eight strategic areas through which the Project’s socio- economic development commitments would be met. The ISP has since further defined these commitments through the development of an Indigenous Peoples Development Framework (IPDF) and an Integrated Social Program (ISP). The IPDF describes the how the Project will comply with the ADB’s Indigenous People’s Policy during the loan repayment period while the ISP describes programs to be implemented in the period 2006-2010. Table 1 lists the 14 component programs of the initial Integrated Social Program (2006-2010).

 AMDAL is the Indonesian acronym for Integrated Environmental and Social Impact Assessment. The AMDAL has three components, namely the assessment (ANDAL), the mitigation plans (RKL) and the monitoring and compliance plan (RPL).  For details regarding these programs, see the document BP Tangguh Integrated Social Program 2006-2010.

BP Tangguh Integrated Social Program 2006-2010 – Summary xxi Table 1. Component Programs of Project Integrated Social Program (2006-2010)

Program Target area Governance and Revenue Management Papua; Bird’s Head Civil Society Strengthening Bird’s Head Bird’s Head Business Empowerment Bird’s Head Mitigation of In-migration and Adverse Induced Impacts Bird’s Head and Kabupaten Teluk Bintuni Workforce and Industrial Affairs Bird’s Head and Kabupaten Teluk Bintuni Governance (kabupaten, district, village) Kabupaten Teluk Bintuni Integrated Community-based Security Kabupaten Teluk Bintuni Education (Basic Education, Scholarships, DAV Assistance) Kabupaten Teluk Bintuni Vocational Training Kabupaten Teluk Bintuni Health Kabupaten Teluk Bintuni Women’s Empowerment Kabupaten Teluk Bintuni Microfinance and Microenterprise Kabupaten Teluk Bintuni Community Action Plans Directly Affected Villages (DAVs) Land Acquisition and Resettlement Action Plan Resettlement-Affected Villages (RAVs)

The strategy aims to ensure that local Indigenous Peoples and others are able to participate fully in all Project social initiatives, that they receive an appropriate level of social development benefits, and that the potential induced adverse impacts associated with the development of the Tangguh Project are mitigated. The strategy provides an efficient and deliverable social development program that takes account of the special needs of the indigenous majority while also helping to mitigate social jealousy and conflict over the receipt of Project benefits.

Fulfilling ADB Policy

Together, the Tangguh Indigenous Peoples Development Framework (IPDF) and Integrated Social Program (ISP) meet the social and environmental requirements of the Indonesian AMDAL process and the requirements of the Asian Development Bank’s Indigenous Peoples Policy and specifically its requirement for the development of an Indigenous Peoples Development Plan.

Project Context

Indigenous People: The recognition of adat (customary) communities and adat rights is complex. While there has been increasing reference to adat communities in various legislation throughout the 1990s, it was only in 2000 that recognition of adat communities found its way into the Constitution. However, given provisions in the Constitution regarding the unitary state of Indonesia, the legal scope to deal with claims for special treatment and to recognize special rights for any specific group of people (including adat communities)�—��������������������������������������������������������������whether in relation to a region (Papua) or to a specific group of people (e.g., indigenous people)—�����������is limited.

Papuan Special Autonomy Law: Since 1999 Indonesia has been engaged in a process of administrative and fiscal decentralization. The move towards regional autonomy has been implemented further with respect to Papua, through the Papuan Special Autonomy Law (PSAL), which was passed in 2001. The PSAL focuses on the recognition and rights of the indigenous population and aims to minimize the gap between the province and other regions; to improve the living standards of Papuan people, and to provide opportunities to indigenous Papuans by granting authority to Papua to regulate and manage the interests of the local people, on its own initiative

xxii BP Tangguh Integrated Social Program 2006-2010 – Summary based on the aspirations and fundamental rights of the people of Papua. However implementation of the PSAL has been delayed. The evolving political situation in Papua implies that uncertainty as to the application of the PSAL in Papua remains.

Socio-economic Environment: Both during and subsequent to the ������������������������Environmental and Social Impact Analysis (ESIA),���������������������������������������������������������������������������� the Project has compiled a substantial database of information on the cultural, social, and economic environment. The environment is very much undeveloped and may be characterized in terms of developing governance, limited transport and communications, and limited basic services such as health and education. While resource extraction (timber, fisheries) have taken place over the last 20 years there has been limited participation of and benefit for local populations. For local communities, traditional lifestyles have only slowly altered with the introduction of a market economy. As such, links to customs (adat) remain strong. This is particularly the case in relation to the importance of land (expressed in terms of hak ulayat). Land is an integral part of clan (and clan member) identity with linkages to the social, economic, cultural and religious facets of life.

Project Impacts

The development and operation of the Tangguh Project has the potential to bring many and varied impacts, both positive and negative, both direct and indirect, to local, regional, provincial and national stakeholders. These impacts include:

 increased revenue flows to the provincial and national governments through the Indonesian government’s Production Sharing Contracts and the Papuan Special Autonomy Law (PSAL)

 the participation (both directly and indirectly) of the Bintuni Bay, Bird’s Head and Papuan communities in construction and operational phase LNG-related employment

 the participation (both directly and indirectly) of the Bintuni Bay, Bird’s Head and Papuan businesses in construction and operational phase LNG-related contracts for goods and services (as well as other opportunities that arise from ongoing economic development)

 the benefit from various Project-sponsored socio-economic and environmental development programs implemented at the village, regency and Bird’s Head levels

 various direct Project impacts including environmental impacts and involuntary resettlement impacts

 various potential adverse Project and/or Project-induced impacts including those typically associated with the establishment of resource extraction projects in remote areas, such as in-migration; economic marginalization; dilution of cultures, customs, and hak ulayat; increased potential for conflict (conflict over access to benefits, ethnic conflict, etc.); increased security risks; increased rates of change and a sense of loss of control; economic boom town effects; increased alcoholism and prostitution; adverse health effects including increased STDs; increased rate of resource depletion and environmental degradation.

 Considerable political and legal uncertainty regarding the implementation of the PSAL persists

BP Tangguh Integrated Social Program 2006-2010 – Summary xxiii Project Consultations

Extensive consultations were held with local communities during Project preparation and the Tangguh Project is committed to ongoing consultation with a broad range of stakeholders during implementation. The objectives of such consultations are to: (i) seek partnership with stakeholders, (ii) engage stakeholders in selection of program priorities and program design, and (iii) provide stakeholders with opportunities to assess the Project.

Project consultations on program design involve a range of stakeholders including government, non- governmental organizations, civil society organizations and the communities. These consultations occur on a formal and informal basis and may involve: (i) pre-design consultations to ensure that the program will reflect priorities and/or needs, experiences and lessons learned as expressed by the various stakeholders, and (ii) consultations with target groups/beneficiaries as part of program design and implementation. Participatory monitoring and evaluation of ISP programs is also a form of consultation with stakeholders that allows them to provide feedback to the Project.

In addition to consultations with the targeted beneficiaries of the ISP programs and ISP program implementation partners, the Project implements general stakeholder meetings with NGOs and with the government.

At the highest level, BP contracted the Tangguh International Advisory Panel (TIAP) in����������� February 2005. Mandates were to���������������������������������������������������������������������������� provide external challenge, advice and assurance to BP in connection with the Tangguh LNG Project in Papua, and in particular, given that the Project proceeds to completion, how best it may achieve its potential as a world-class model for development. The panel takes into account the Project’s effects on (i) local communities; (ii) the environment and biodiversity, and (iii) political, economic and social conditions in Indonesia generally and in Papua specifically. The Panel’s work involves a combination of direct physical assessment of the field conditions and extensive stakeholder consultations with villagers, non-government and multilateral organizations active in Papua, donors supporting projects in Papua, and government at the district, regency, provincial and national level within the country. The Panel’s role is an advisory one and the Panel has no executive authority or responsibility in relation to the Project. The Panel reports to the BP group chief executive. Following development of a Project response to the TIAP report, the������������������ TIAP generally presents the results of their assessment to stakeholders and other interest groups in Indonesia and internationally.

Specific Indigenous People’s Issues

The Project has developed Project policies and guidelines for conducting business with local communities in the Bay, many of which take into account specific issues of importance to indigenous people. These policies and guidelines include:

 recognition of customs (adat) and traditional rights (hak ulayat): the Project is actively aware of the importance of traditional customs (adat) and traditional rights (hak ulayat) amongst the clans and tribal groups resident in the vicinity of the Project and integrates such recognition into the Project planning and implementation process.

 recognition of cultural sites

 provision of compensation

xxiv BP Tangguh Integrated Social Program 2006-2010 – Summary ISP Component Programs (2006-2010)

The Integrated Social Program is composed of the following components:

 Governance and Revenue Management: (i) improving stakeholder awareness and understanding; (ii) support for strengthening of government capacity

 Civil Society Strengthening and Strengthening of Adat Institutions: (i) strengthening of civil society organizations in the Bird’s Head region of Papua, and (ii) strengthening of adat institutions in Kabupaten Teluk Bintuni

 Bird’s Head Business Empowerment: (i) developing the capacity of businesses to bid for work related to construction and operation of the Tangguh LNG Project, and (ii) institutionalization of the business empowerment approach that would improve the capacity of existing and newly formed businesses to develop and compete for contracts as economic growth occurs and new industries develop

 Workforce and Industrial Relations: activities to ensure participation of local workforce during the lifetime of the Project

 Mitigation of In-migration and Adverse Induced Impacts: (i) improved Project and GOI policies and guidelines that aim to reduce both opportunities for and the impact of spontaneous in-migration to the Project area; (ii) improved awareness amongst GOI, civil society and the community of the potential scale of in-migration, the nature and scale of Project-induced impacts, and mechanisms available for management of impacts, and (iii) improved capacity in government (village, district [kecamatan] and regency [kabupaten]) and civil society to manage, monitor and respond to spontaneous in-migration and induced impacts

 Regency and Village Governance: (i) strengthening the capacity of regency government, and (ii) strengthening district- and village-level government. Both components include civil society awareness-building

 Integrated Community-based Security: (i) delivery of Project security outcomes through development and implementation of an effective community policing system that develops awareness, ownership, trust and links between various security stakeholders (i.e., the community and the police), and (ii) an effective community-based Security Forum in which community leaders (including tribal, clan and adat leaders), local government, representatives from the military and the police and industry representatives meet together to discuss security issues

 Health: (i) Malaria Control Program; (ii) HIV/AIDS Prevention Program; (iii) TB Control Program; (iv) Water, Environment & Sanitation Program; (v) Maternal & Child Health Program, and (vi) Basic Health Service

 Education: (i) strategic planning and management capacity; (ii) assessment and capacity-building of education service providers; (iii) education resources; (iv) household and community support for education; (v) direct support of community schools in DAVs

 Vocational Training: Opportunities to participate in vocational training aimed at both LNG construction-phase and post- LNG construction-phase employment

BP Tangguh Integrated Social Program 2006-2010 – Summary xxv  Women’s Empowerment: (i) establishment of Women’s Forum; (ii) building awareness of potential adverse induced impacts and women’s roles in their management and mitigation, and (iii) village-level support for women

 Microfinance and Microenterprise: promotion of savings opportunities and facilitation of development of microenterprise at village and Bay levels

 Community Action Program: specific program targeting Directly Affected Villages (as identified in the Project AMDAL) aiming to promote community development through promotion of participatory planning process and project design and implementation skills. The CAP provides IDR300 million per year to each DAV for a period of ten years.

 Land Acquisition and Resettlement Action Plan (LARAP): the Project has developed a Land Acquisition and Resettlement Action Plan (LARAP) to address the involuntary resettlement impacts associated with the Project.

Implementation Framework

The Tangguh Project has established an ISP Unit to manage and implement ISP programs. Overall management of the ISP is based in��������������������������������������������������������������� the Project offices of BP in Jakarta.����������������������� Program implementation occurs through program teams or is fully outsourced.

Project relations with government involve a broad spectrum of activities including: (i) awareness building, information sharing and progress reporting; (ii) permitting, and (iii) consultation, partnership and joint implementation. Implementation of the majority of ISP programs requires government support.

Budget

The Integrated Social Program budget for the period 2006-2010 totals $58,259,000 (which includes the Land Acquisition and Resettlement Action Plan (LARAP) budget for the period 2006 to 2009). The Project is directly funding the majority of programs. The budget can be broken into three components: programs (59.6%), project and program support (5.2%) and staff (35.2%). Nine per cent of the budget is allocated to the Bird’s Head programs while 35.3% are allocated to programs directed to Kabupaten Teluk Bintuni. Within Kabupaten Teluk Bintuni, ISP programming focuses on three basic development sectors—namely health, education (including vocational training) and governance—which together draw 77% of the Kabupaten Teluk Bintuni budget (or 27.2% of the total budget). Finally two Project-specific programs, namely the Community Action Program for Directly Affected Villages and the remaining commitments of the Resettlement Program (as described in LARAP), represent substantial program commitments (i.e., 8.7% and 6.4% respectively).

ISP Monitoring and Evaluation

The ISP monitoring and evaluation framework calls for regular internal monitoring at the program level and independent, external M&E of all ISP programs on an annual basis.

 Readers who wish to focus on the Project’s involuntary resettlement program are referred to this document for more detail.  Unless otherwise stated all percentages are reported in terms of total budget.

xxvi BP Tangguh Integrated Social Program 2006-2010 – Summary SECTION I INTRODUCTION The Tangguh Project’s Integrated Social Program and ADB’s Policy on Indigenous Peoples

1 Introduction

1 .1 Introduction

The Tangguh Liquefied Natural Gas (LNG) Project is being developed in the Berau and Bintuni Bays on the Bird’s Head Peninsula of Papua, Indonesia’s easternmost province, approximately 3,200 km east of Indonesia’s capital, Jakarta (Figure 1.1). The Project will extract natural gas from large offshore reservoirs and pipe it to an LNG plant for conversion to LNG after which the LNG will be exported (by tanker) to markets in the Asia-Pacific and beyond. Based on current reserves and initial two- train capacity, the operational lifespan of the LNG plant will be over 40 years. Initial construction commenced in 2004 and is scheduled to be completed in 2008.

The Project will have significant direct and induced socio-economic impacts on the Bay communities and more generally on the Bird’s Head of Papua and the on province as a whole. In 2002, the Tangguh Project completed an Environmental and Social Impact Analysis (AMDAL). The AMDAL establishes the Project’s environmental and socio-economic development commitments and the framework by which they are to be achieved. Within the Project, the Integrated Social Program (ISP) Unit was established to develop and implement the policies and programs that together meet the social,

 �������������������������������������������������������������������������������������������������Project development and implementation will occur in both the Berau and the Bintuni Bay. In this document the term Bay is utilized to describe the overall region encompassing both bays.  ���������The term �“�����train” ����������������������������������������������������describes units that purify and liquefy gas into LNG  �����������������������������������������������������������������������������������������������AMDAL is the Indonesian acronym for Integrated Environmental and Social Impact Assessment. The AMDAL has three components, namely the assessment (ANDAL), the mitigation plans (RKL) and the monitoring and compliance plan (RPL). Preparation of the Project AMDAL commenced in mid-2000 and was concluded with the submission of a 7,000-page document to the Indonesian government in 2002. The document was reviewed and approved by a government committee comprising relevant ministries (including the State Ministry for the Environment, the Ministry of Energy and Mineral Resources and the Ministry of Forestry) on October 28, 2002. The RKL has several appendices that describe key socio-economic development commitments including Appendix B – Workforce Management Program; Appendix C – Recognition Program for Directly Affected Villages; Appendix D – Program for Other Stakeholders’ Interests; Appendix E – Procedure for Conflict Resolution; Appendix F - Indigenous Peoples Development Plan; Appendix G - Land Acquisition and Resettlement Action Plan, and; Appendix H - Public Consultation and Disclosure Plan.

1 Introduction  economic and cultural commitments set out in the AMDAL. At the time of AMDAL approval the ISP identified eight programs through which this would be achieved. Over time the ISP has evolved, and now encompasses 15 specific programs. This document provides the context, rationale and content of the ISP programs.

In addition to meeting AMDAL requirements, the ISP also complies with international social policies pertaining to Indigenous People (IP) and involuntary resettlement. International policies and guidelines on Indigenous Peoples call for the development of an Indigenous Peoples Plan (IPP) if Indigenous Peoples are likely to be affected by project development and operations. An IPP can take the form of an Indigenous Peoples Development Framework (IPDF) and/or an Indigenous Peoples Development Plan (IPDP). Similarly, international policies and guidelines on involuntary resettlement call for the development of a Resettlement Action Plan to address the impacts of involuntary resettlement.

Figure 1.1 Location of Tangguh LNG Project

Sorong Manokwari

Sememanjung Kepala Burung

Bintuni

Teluk Berau Bintuni

Fakfak

PAPUA

The Tangguh Project has elected to integrate the requirements of an IPDP into the development of its Integrated Social Program (ISP). The rationale for such integration is based on recognition of the following:

 While the majority of the population of the Project-affected area comprises Indigenous People, there is close integration of indigenous and non-indigenous communities, households and individuals.

 Both indigenous and non-indigenous households and communities experience poverty and together face the same environmental and socio-economic challenges presented by the Bay environment.

 Based on the integration of the indigenous and non-indigenous population, the Project believes that a common social development strategy is more appropriate in that: (i) it provides a more inclusive, integrated and effective

 BP Tangguh Integrated Social Program social development framework for the area without losing sight of the needs of the indigenous majority, and, in so doing (ii) helps mitigate social jealousy and potential conflict over receipt of project benefits.

Hence the Integrated Social Program (ISP) meets all the requirements of the Asian Development Bank’s Policy on Indigenous Peoples and specifically its requirement for the development of an Indigenous Peoples Development Plan (IPDP). As such, the ISP described in this document should be considered to be the equivalent of an IPDP.

1 .2 ISP Compliance with IPDP Requirements

The Project has developed an ISP that meets the requirements of an Indigenous Peoples Development Plan. In particular, the ISP: (i) promotes the participation of Indigenous People in Project preparation and implementation; (ii) ensures they benefit from development interventions that would affect them and (iii) provides effective safeguards against adverse impacts. This is achieved through:

 the design and implementation of development programs that aim to increase the socio-economic well-being of Indigenous People, households and communities in Kabupaten Teluk Bintuni;

 the specification of targets and/or design and implementation of programs that facilitate Indigenous People’s (local, regional and provincial stakeholders) ability to participate in and benefit from the development and operation of the LNG plant as well as the Project-induced economic development that inevitably will occur in the Bird’s Head of Papua;

 the Project’s focus on addressing key Indigenous People’s issues;

 the design and implementation of programs aimed at mitigating the adverse impacts of the Project.

1 .3 Policy and Guidelines on Indigenous Peoples

1 .3 1. Rationale for Developing Indigenous Peoples Plans

Project development and operations have both positive and negative cultural, social, and economic impacts on communities. Experience has demonstrated that a sub-group of the population, namely Indigenous People, is especially vulnerable in the development process. This vulnerability is deemed to stem from Indigenous People’s lack of information; knowledge; analytical and organizational capacities, and political channels and power to influence and direct development processes that directly or indirectly affect their lives. As a consequence, the Indigenous Peoples affected by projects have tended to have lower participation rates, derive less benefit, and experience greater negative impacts from project development.

Recognition of the vulnerability of indigenous groups in the development process has led international agencies such as the Asian Development Bank and World Bank to develop specific policies and guidelines that provide safeguards for Indigenous People affected by project development. These

 ������������������������������������������������������������������������������������������������ADB, April 1998, The Bank’s Policy on Indigenous Peoples; ADB, May 2004, Operations Manual Bank Policies (BP) Indigenous People OM Section F3/BP; Operations Manual Operational Procedures (OP) OM Section F3/OP 5 WB, December 2004, Operational Policies DRAFT OP4.10 Indigenous Peoples

1 Introduction  policies and guidelines set out the basis for recognizing Indigenous People, identifying potential impacts (positive and negative), and requiring the development of specific plans promoting the development of Indigenous Peoples. The policies specify that where a project is likely to have significant impacts on Indigenous People, the project must develop an Indigenous Peoples Plan (IPP) where the objectives of an IPP are: (a) to promote the participation of Indigenous People in project preparation and implementation; (b) to ensure they benefit from development interventions that would affect them, and (iii) to provide effective safeguards against adverse impacts.

1 .3 .2 The Definition of Indigenous People

In the literature, Indigenous People are variably described as cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives and aboriginals. To date a specific and all- encompassing definition of the term ‘Indigenous People’ has not been developed and the term has thus been described in terms of the key characteristics of Indigenous People.

The ADB policy on Indigenous People describes Indigenous Peoples as groups with social or cultural identities distinct from that of the dominant or mainstream society. The definition identifies two significant characteristics of Indigenous Peoples, namely:

(i) descent from population groups present in a given area before modern states or territories were created, and

(ii) maintenance of cultural and social identities and cultural, social, economic and political traditions and institutions, distinct from the mainstream or dominant society.

Additional characteristics that may be used to identify Indigenous Peoples include:

(i) self-identification and identification by others as being part of a distinct indigenous cultural group, and the display of the desire to preserve their cultural identity;

(ii) a linguistic identity different from that of the mainstream or dominant society;

(iii) an economic system oriented more toward a traditional system of production than toward the mainstream production system, and/or

(iv) an unique tie with and attachment to traditional habitat and ancestral territory and its natural resources.

In the case of the Tangguh Project, the majority of the Project-affected population comprises Indigenous People. Specifically:

 Both the population in the immediate vicinity of the Project (i.e., Kabupaten Teluk Bintuni) as well as the Bird’s Head and Papua comprise tribal groups that have been resident in the area prior to the establishment of Dutch-controlled Nederlands Nieuw Guinea (NNG) and later, the province of Irian Jaya (now Papua) within Indonesia;

 These tribal groups—of which there are seven in Kabupaten Teluk Bintuni�— maintain cultural and social identities and cultural, social, economic and political traditions and institutions, distinct from mainstream Indonesian society.

 BP Tangguh Integrated Social Program  These tribal groups have distinct oral histories, patterns of migration and settlement, and specific adat (customs) and hak ulayat (rights) that allow both self-identification as well as recognition by others.

 Each of these tribal groups has a linguistic identity distinct from mainstream society in which Bahasa Indonesia is the lingua franca.

 The tribal groups are in transition from traditional subsistence to cash economies. There are strong socio-cultural influences on resource use and other aspects of local economies.

 Links to natural resources are an important component of identity. Specifically, land is an integral part of clan (and clan member) identity with linkages to the social, economic, cultural and religious facets of life.

1 .3 .3 Policy Requirements and Guidelines

The ADB recognizes that the significance of a project’s impact on Indigenous People is dependent upon the location, type, nature and magnitude of a project’s potential impacts on Indigenous People. In general terms, project impacts on Indigenous Peoples will be considered significant if they positively or negatively: (i) affect their customary right of use and access to land and natural resources; (ii) affect their cultural and communal integrity; (iii) change their socio-economic status; (iv) affect their health, education, livelihood and/or social security status and/or (iv) alter or undermine the recognition of indigenous knowledge.

If Indigenous Peoples are likely to be affected by project development and operations, the project is required to prepare and implement an Indigenous Peoples Plan (IPP) which may take the form of an Indigenous Peoples Development Plan (IPDP), an Indigenous Peoples Development Framework (IPDF) or Indigenous Peoples specific actions. The ADB provides the following categorization and requirements of projects according to their impact on Indigenous People.

 A Category ‘A’ project has a significant impact on Indigenous People and requires the development of an Indigenous Peoples Development Plan (IPDP) or Indigenous Peoples Development Framework (IPDF). An IPDP is needed when: (i) a community comprising Indigenous People is the main beneficiary of a development project; (ii) a project component may significantly benefit the community and/or (iii) the project or component thereof may have significant adverse impacts on Indigenous People.

 A Category ‘B’ Project has limited impacts and requires specification of actions for Indigenous People to address limited impacts.

 A Category ‘C’ Project has no impacts on Indigenous People.

The Tangguh Project is classified as a Category ‘A” Project, requiring the development of an IPDF and IPDP.

1 .3 .4 Guidelines for Developing IPDPs

Both the ADB and WB provide guidelines for the development of IPDPs. Specifically, they recommend that acceptable IPDPs should:

(i) ensure project benefits will accrue to Indigenous Peoples

(ii) be equitable in terms of development efforts and impacts

1 Introduction  (iii) address the potential positive and negative impacts on Indigenous Peoples

(iv) not impose the negative effects of development on Indigenous Peoples, but if such effects are unavoidable, they should be minimized as much as possible, and appropriate measures be taken to mitigate or compensate for the adverse impacts

(v) be consistent with needs, preferred options and aspirations of affected Indigenous Peoples

(vi) be compatible in substance and structure with affected IP’s belief, cultures, social and economic institutions, ancestral territory and resource use patterns

(vii) be conceived, planned and implemented with the informed participation of affected communities

(viii) involve local organizations and NGOs with expertise in IP’s issues

(ix) strengthen social, legal and technical capabilities of government institutions to address IP’s issues

(x) present specific plans for IPDP implementation with inclusion of an activity schedule, monitoring and evaluation methodology and schedule, and budget

1 .4 The Tangguh Project Integrated Social Program (ISP)

1 .4 1. Introduction

This section describes the Tangguh Project Integrated Social Program (ISP). The first section focuses on identifying the Project-Affected People. The second section describes the evolution of the ISP and leads to the third section in which a description of the current status of the ISP is provided. A final section defines the implementation period for the current ISP and elucidates plans for periodic review and definition of the ISP during the operational phase of the LNG plant.

1 .4 .2 Defining the Project-Affected People

There are two primary determinants of the incidence and distribution of direct impacts associated with the physical development of the Project in Kabupaten Teluk Bintuni, namely proximity to the Project and access to the Bay. Proximity to the Project (i.e., LNG plant and reservoirs) defines expectations and perceived entitlement to benefits. Tribal and community adat and hak ulayat rights as well as perceived entitlement diminish in relation to distance from the Project site (although as described elsewhere this analysis is somewhat conditional upon tribal genealogies and history of settlement).

Entry points to Papua that serve as transit points to the Bay include the regional centres of Fakfak, Sorong, and Manokwari. Subsequent travel to the Project area brings people to the towns of Bintuni or Babo. From these towns people may travel to north shore and south shore villages. As a general principal, villages located on the Bay (and particularly those on the south shore close to the LNG plant) will serve as the most obvious and immediate destination. Accordingly the resettlement villages of Tanah Merah and Saengga will serve as key destinations because of their proximity to the Project as well as their relatively higher state of development.

 BP Tangguh Integrated Social Program On the basis of the above analysis, the Project has defined a nested hierarchy of Project-Affected People based on impact and proximity to the Project, as follows:

Province: At the highest level, the Project considers that the entire province is affected, with the main impact deriving from Project-derived revenue flows and the potential for the development programs implemented at lower levels to be replicated across the province.

Bird’s Head: The next level comprises the Bird’s Head of Papua (particularly the urban centres of Fakfak, Sorong and Manokwari). While also benefiting from Project-derived revenue flows, the greater proximity and hence linkages of the region to the Project imply greater participation in and benefit from the Project (i.e., business, employment) as well as increased risk of greater adverse induced impacts. Furthermore there is also the potential for the development programs implemented at lower levels to be replicated across the region.

Regency: The next level comprises the regency in which the Project is located, namely Kabupaten Teluk Bintuni. This level represents the primary focus of the Project and the majority of the programs supporting participation, benefit and mitigation of adverse impact are directed at this level. Implicit in this focus is the recognition that: (i) the regency is the most immediate, direct link between the Project and Papuan communities and (ii) through this focus, the Project is seeking to develop viable, sustainable models that may be replicated across the region.

Directly Affected Villages: Below the regency the Project recognizes Directly Affected Villages (DAVs), a group of nine villages that have, for various reasons, been identified as being directly impacted by the Project and which, as a result, are the subject of more intense development and mitigation efforts.

Resettlement-Affected Villages: Finally, as a subset of the DAVs, the Project recognizes Resettlement-Affected Villages, comprising a group of three villages (a resettled village and two host villages) that have been specifically and uniquely affected by the development of the Project.

1 .4 .3 Evolution of ISP

The development, completion and approval of the Project AMDAL in October 2002 established the Project’s environmental and socio-economic development commitments and simultaneously the framework by which they were to be achieved. Within the Project, the Integrated Social Strategy (ISS) Unit was created and tasked with development and implementation of policies and programs that together would meet the Project obligations/commitments set out in the AMDAL. At this early stage the ISS identified eight programs through which this would be achieved:

 Diversified Growth Strategy

 Fiscal Impact Management

 Integrated Community-based Security

 Training and Workforce Management

 Community-driven Development

 Community-based Enterprise

 Tanah Merah Resettlement

 Forum and Foundation

1 Introduction  Both Project priorities and the field reality dictated the rate of development and implementation of these programs. Specifically the Diversified Growth Strategy, Community-driven Development (through the Community Action Plans), Integrated Community-based Security and Resettlement became the initial focus of activities. These programs are summarized below.

Diversified Growth Strategy (DGS):Pre-Project public consultations regarding the development of the Tangguh Project raised four key priorities: (i) to minimize or eliminate in-migration (due to Tangguh and other businesses); (ii) to maximize benefits for Papuans (jobs, training, benefits derived from higher revenue flows); (iii) to improve human capacity and infrastructure, and (iv) to ensure delivery of an approved and implemented Bird’s Head regional spatial plan. In response to these concerns, the Project developed the Diversified Growth Strategy.

The underlying principle of the Diversified Growth Strategy (DGS) is that income from one industry source and location can be utilized to drive growth in a geographically broader region and across a range of industry and government. Accordingly in the context of the Tangguh Project, the Diversified Growth Strategy aims to ensure that Project development benefits local communities while simultaneously promoting diversified and sustainable economic growth and spatial regional planning in the broader Bird’s Head region and Papua.

Papuan Government bodies in the Bird’s Head, UNDP and BP committed themselves to the DGS by way of an MOU that was signed on 26 November 2002. The DGS MOU mandates two major components: (1) formulation of a Regional Development Plan for the Bird’s Head, and (2) formulation of a Capacity Building Plan. The Implementation Agreement (DGS YR2004-2006 work plan) was finalized in December 2003. This agreement provides the management objectives framework for:

 development of a Bird’s Head Regional Plan

 sustainable development of existing urban centres (Manokwari, Fakfak and Sorong) to minimize unwanted in-migration to the region

 empowerment of Bird’s Head businesses (e.g., increased awareness of and ability to meet requisite standards, competitiveness)

 contributions to Bird’s Head region human resource development (local government, community, and local business) while minimizing in-migration

 encouragement towards improved management of renewable natural resources

 support for community-based development activities (linked with ISP field team)

In further support of the DGS, USAID and the Tangguh Project became partners through USAID’s Global Development Alliance (GDA) program which promotes public-private sector partnerships for development. The Papuan program, known as the Bird’s Head Alliance (BHA), was implemented from 2002-2005. The BHA had seven focus areas, namely: microenterprise; performance budgeting; performance planning for local governments; health; environment, civil society strengthening; and legislative strengthening.

The DGS has been adopted by the government (central, provincial and regency) and its implementation is occurring together with the UNDP and the Tangguh Project. The GOI-UNDP program will be implemented from 2005-2008. The program aims to: (a) strengthen networking between stakeholders; (b) strengthen the legislative framework supporting large-scale project development; (c) promote Papuan business, and (d) develop a regional spatial plan. In addition to supporting the GOI-UNDP initiative, the Tangguh Project continues to support various regional programs that ostensibly fall

 BP Tangguh Integrated Social Program under the DGS rubric. These programs include Bird’s Head business empowerment, fiscal impact, governance programs, civil society strengthening, workforce and industrial affairs, and the mitigation of in-migration and adverse impacts.

Community-driven Development (Community Action Programs): In the AMDAL, nine Directly- Affected Villages (DAVs) were identified and commitments for specific interventions to promote the development of these villages and the participation of the village population in the Project were defined. The Tangguh Project subsequently committed to implementing a community-driven participatory development program in each of the DAVs. Through this program the community maps their needs and priorities to identify village-level projects and is subsequently involved in the design and implementation of selected projects. The Project committed to provide IDR 300 million to each DAV for ten years to support village-level development projects.

Implementation of the program commenced in late 2002. The CAPs program was identified as a priority because it delivers benefits to local villages (i.e., the Project’s closest stakeholders). Further, given the Project investment in resettlement activities on the south shore of the Bay, the implementation of a program delivering benefits to other villages (including north shore villages) was felt to be strategic.

Integrated Community-based Security: From the outset, the Project identified the need to develop and implement an alternative model for the provision of security for the Project and communities residing in the vicinity of the Project. The proposed model, referred to as Integrated Community- based Security (ICBS), focuses on the multi-stakeholder consultations and responsibility for the delivery of security outcomes. Much of the early work conducted on ICBS involved consultations with the Indonesian police and military to ensure that ICBS was an accepted vehicle for the delivery of security outcomes in the Indonesian context.

Resettlement: The selection of the Tanah Merah village as the optimal location for development of the LNG plant implied that implementation of the Land Acquisition and Resettlement Action Plan became an imperative for Tangguh development. From 2002-2004, the Project focused on development of new villages for the Tanah Merah community and social and cultural preparations for relocation. In June-July 2004, the Tanah Merah community was relocated to their new villages in Tanah Merah Baru and Onar Baru respectively. Subsequent to relocation, the Project is engaged in developing improved housing for the host villages of Saengga and Onar Lama and the implementation of a broad range of socio-economic development activities aimed at ensuring the re-establishment and sustainability of livelihoods in the new villages.

Over time, the ISS program has become more comprehensive and addressed Revenue Management, Training and Workforce Management, Community-driven Development (including health and education), and Community-based Enterprise.

Most recently, the Tangguh Project has revised their IPDP and LARAP to ensure they that comply with international policy and guidelines (i.e., World Bank, Asian Development Bank, Equator Principles). This revision has allowed the Project to draw together the Project’s various socio-economic development programs. This process has required improved definition of existing programs, an increased scope for a number of programs (e.g., health, education) and the addition of new programs (e.g., Strengthening of Adat Institutions). Table 1.1 indicates how the eight components of the ISS program have evolved into the ISP programs described in this document.

 The Land Acquisition and Resettlement Action Plan (LARAP) describes the plans for the resettlement- affected communities

1 Introduction  Table 1 1. Evolution of Tangguh Project Social Development Programming

Integrated Social Strategy (ISS) Integrated Social Program (ISP) Component Programs (2002) Program Components (2005)

Diversified Growth Strategy Governance

Civil Society Strengthening

Bird’s Head Business Empowerment

Mitigation of In-migration and Induced Impacts

Fiscal Impact Management Revenue Management

Training and Workforce Management Workforce and Industrial Affairs

Vocational Training

Integrated Community-based Security Integrated Community-based Security

Community-driven development Community Action Plans/Community Development (in DAVs)

Health

Education (basic education, scholarships, DAV assistance)

Governance (kabupaten, district, village)

Women’s Empowerment

Community-based Enterprise Microfinance and Microenterprise

Tanah Merah Resettlement Land Acquisition and Resettlement Action Plan

Forum and Foundation Forum and Foundation

1 .4 .4 ISP Component Programs

The ISP comprises a total of 14 programs targeting Papua, the Bird’s Head, Kabupaten Teluk Bintuni and direct community assistance to the Directly Affected Villages and Resettlement-Affected Villages. These programs have been developed to promote the participation and benefit of local people, to respond to the identified project impacts, and to respond to Indigenous Peoples’ specific issues. Table 1.2 lists the programs and their objectives.

1 .4 .5 Time Frame

The Tangguh Project is anticipated to have an operational lifespan of up to 40 years. To account for this long time frame, the Project’s Integrated Social Program (meeting the requirements of an Indigenous Peoples Development Plan (IPDP)) is supplemented with an Indigenous Peoples Development Framework (IPDF). The IPDF outlines the Project approach to addressing the development of Project- Affected People during the loan repayment period. Specifically, the IPDF commits the Project to: (a) finite planning and implementation periods with review and development of ongoing ISPfor subsequent periods; (b) review of the ISP if and when the Project adds new components or sub- components which may affect Indigenous Peoples, and (c) review of the ISP if the socio-political framework in which the ISP has been developed changes substantially during the implementation period. The current ISP (as presented in this document) addresses the period from 2006-2010. This

 ���������������������������������������������������������������������������������������������� The current ISP does not include the Forum and Foundation program which aims to encourage the establishment of an inclusive kabupaten-wide Forum and Foundation that allows participation of local stakeholders in determining development priorities and implementing programs. At this time, ISP recognizes that current conditions are not conducive to the program’s development. Nonetheless, ISP retains the intent of developing the Forum and Foundation in subsequent iterations of the ISP.

10 BP Tangguh Integrated Social Program period coincides with several important events, primarily the ����������transition �f�����������������������������rom construction to operation. Towards the end of this period, the Project will review and revise the ISP to reflect changed Project and stakeholder circumstances.

Table 1.2 Summary of ISP Programs and Objectives

No Geographic Focus Objectives Target

I Papua P1 Governance and • improved stakeholder awareness of revenue management (vis Papua Revenue Management a vis the Papuan Special Autonomy Law) and the Bird’s Head Diversified Growth Strategy (DGS) • improved government capacity to manage revenue streams (including Bird’s Head governance and capacity- building

II Bird’s Head BH1 Civil Society Bird’s Head and Strengthening kabupaten a civil society • increased capacity of civil society to represent their strengthening constituents and address their needs b strengthening adat • improved definition and understanding of the roles and institutions responsibilities of adat institutions in relation to their tribal and clan constituencies, government and non-government bodies and other private-sector companies • improved representativeness of adat institutions amongst their tribal and clan constituents • improved capacity of adat institutions to manage their responsibilities including activities that strengthen culture, adat and hak ulayat

BH2 Bird’s Head Business • improved capacity of Papuan business to compete for Bird’s Head Empowerment business opportunities associated with construction and operation of LNG plant (i.e., supply of goods and services). • institutionalization of an approach to business empowerment and capacity-building in the Bird’s Head region of Papua (enabling local businesses to take advantage of opportunities that arise as a result of the economic development of the Bird’s Head).

BH3 Management of • existence of transparent, equitable workforce recruitment Bird’s Head and Workforce Recruitment and management systems in line with Project AMDAL kabupaten and Industrial Affairs commitments • participation of local, Papuan and Indonesian people on the workforce in line with Project AMDAL commitments • assurance that all workforce recruitment and industrial relation practices comply with current Indonesian regulations • promotion of cultural harmony and secure relations within the Project workforce and between the Project, the workforce, and the Bay and Bird’s Head communities

BH4 Mitigation of In- • improved Project and GOI policies and guidelines that reduce Bird’s Head and migration and Adverse spontaneous in-migration to the Project area kabupaten Impacts • improved awareness amongst GOI, civil society and the community of the potential scale of in-migration, the nature and scale of Project-induced impacts, and mechanisms available for management of impacts; • improved capacity in government (village, kecamatan and kabupaten) and civil society to manage, monitor and respond to spontaneous in-migration and induced impacts

1 Introduction 11 Table 1 2. Summary of ISP Programs and Objectives (cont .)

No Geographic Focus Objectives Target

III Kabupaten K1 Governance a regency government • strengthened capacity of government in relation to strategic kabupaten planning, delivery of basic services to their constituency and transparent and accountable management. b district government • strengthened capacity of government in relation to strategic district planning, delivery of basic services to their constituency and transparent and accountable management. b village government • increased awareness and understanding of the structure, villages roles and responsibilities of government amongst the community and elected village government representatives thereby enabling the population to be active, well informed participants in village-level (and district and regency) government • strengthened capacity of village government to: (a) provide transparent and accountable village-level government; (b) develop sustainable medium and longer-term development plans leading to improved delivery of services

K2 Integrated Community- • organization of a primarily locally developed and managed kabupaten based Security security force capable of delivering the Project’s physical security needs • delivery of Project security outcomes through development and implementation of an effective community policing system that develops awareness, ownership, trust and links between various security stakeholders (i.e., the community and the police) • development of an effective community-based Security Forum in which community leaders (including tribal, clan and adat leaders), local government, representatives from the military and the police and industry representatives meet together to discuss security issues

K3 Health Maternal & Child Health Program kabupaten • improved health and nutrition status for children <5 yrs and women of reproductive age • improved access to quality maternal and child health care services • improved health-seeking and care-giving behaviour

Malaria Control Program • reduction in malaria transmission rates • reduction in malaria mortality rates

HIV/AIDS Prevention Program • improved risk-reduction behaviours for the population, especially at-risk groups • reduced HIV/AID and STI transmission and impacts on Tangguh workforce and conversely, limited impacts that the workforce has on the development of the HIV/AIDS epidemic in Papua • limited impact of HIV/AIDS and STI transmission in the Bird’s Head and improved capacity of the local community to deal with the HIV/AIDS epidemic

TB Control Program • establishment of effective workplace TB Control program for the Tangguh Project • improved capacity of health providers in Kabupaten Teluk Bintuni to prevent and control TB

12 BP Tangguh Integrated Social Program Table 1 2. Summary of ISP Programs and Objectives (cont .)

No Geographic Focus Objectives Target

Water, Environment and Sanitation Program • increased access to safe drinking water & adequate sanitation in the DAVs • increased community capacity to prevent disease due to poor sanitation • reduction in reported rates of diarrhea disease in adults and children • increased access to adequate sanitation • reduction in child mortality due to diarrheal disease • increased scientific understanding of causes of diarrheal disease

Health Service Strengthening • improved access to and provision of better quality health services in the Directly Affected Villages (DAVs) • improved community confidence in local health services

K4 Education • development of capacity to manage the basic education kabupaten sector in Kabupaten Teluk Bintuni • improved participation, completion and learning outcomes from basic education in Kabupaten Teluk Bintuni

K5 Vocational Training • increased literacy and numeracy skills for DAV populations kabupaten • development of basic awareness and skill sets that enable potential employees to safely participate in regulated, wage- based employment offered during LNG construction • development of relevant trade-sector skills that allow the adult Kabupaten Teluk Bintuni population���������������������� to participate in the developing economy of the Bay or regional growth centres (such as Manokwari, Sorong and Fakfak) following completion of LNG construction-related employment. • creation of a national workforce capable of assuming supervisory roles in the LNG operations organization

K6 Women’s Empowerment • greater awareness, understanding and respect for the rights, kabupaten roles and responsibilities of women • improved status of women as reflected in greater participation in decision-making and management of resources at the household and community level • recognition and mitigation of the negative impacts induced by Project-driven changes in livelihood patterns and income levels.

K7 Microfinance and • improved individual and household awareness, access to kabupaten Microenterprise savings vehicles, and level of savings • improved capacity to develop micro- and small enterprise kabupaten that can meet the operational needs of the LNG plant and/or that responds to new opportunities arising from the ongoing economic development occurring within the Bay

IV Direct Community Assistance – DAVs and RAVs DCA1 Community Action Plans • improved livelihoods of individuals, households and DAVs (DAVs) communities by strengthening the capacity to plan and manage their own development, leading to improvements in the physical, social and human resource capacity of the individuals and households.

DCA2 LARAP (RAVs) • assistance for resettled and host communities to sustainably RAVs improve and surpass their income, standards of living, and livelihoods (in real terms) over and above pre-Project (displacement) levels or expected levels without the Project

1 Introduction 13 1 .5 Structure of Document

The ISP is presented in four blocks as follows:

I. INTRODUCTION (Chapter 1)

The introduction provides an overview of the Tangguh Integrated Social Program. It also specifies that the ISP meets the requirements of international policies on Indigenous People and that the document should be considered to be the equivalent of an IPDP.

II. CONTEXT (Chapters 2-5)

Chapter 2 presents a description of the Tangguh Project focusing on the construction and operations phases of the Project and their links to the socio-economic environment.

Chapter 3 presents an overview of the status of Indigenous People in national and provincial legislation. The chapter first considers national and provincial legislation pertaining specifically to the recognition of Indigenous People and subsequently reviews legislation in which the rights of Indigenous People are discussed. The chapter then considers a description of the legislation pertaining to Project- specific issues including transmigration, village-level governance, etc. Finally, the chapter considers the Papuan Special Autonomy Law that was passed by the GOI in 2001.

Chapter 4 provides a description of the economic, social, and cultural aspects of the Project environment. The chapter starts with a summary description of the Bird’s Head (in particular the major urban centres of Manokwari, Sorong and Fakfak) and subsequently presents a comprehensive description of the Bay environment and communities. It closes with a description of the tribes residing in Kabupaten Teluk Bintuni.

Chapter 5 provides details of the Project’s approach to consultations and to participation of stakeholders at the local, regional and provincial levels. The chapter also describes the Project’s grievance procedures and outlines plans for public disclosure of the document.

III. ASSESSING PROJECT IMPACTS (Chapter 6)

Chapter 6 presents a Project impact analysis. By individually considering the attributes of the Project and the socio-economic environment, the main Project impacts are identified.

IV. PROGRAM DESCRIPTION AND IMPLEMENTATION (Chapters 7-11)

Sections II and III provide the basis for ISP program selection and the design and implementation of programs. Chapter 7 describes Project positions on a range of matters that together aim to address issues of participation, benefit and mitigation of adverse impacts. Many of these issues are specifically relevant to Indigenous People. Examples of how these positions have been applied in practice are also provided. Chapter 8 presents the Project’s socio-economic development programs. Chapter 9 presents the implementation plan while Chapter 10 presents an integrated budget for all programs. Finally, Chapter 11 presents the Project’s monitoring and evaluation framework.

14 BP Tangguh Integrated Social Program SECTION II CONTEXT Baseline Information and Consultation

2 The Tangguh Project

2 1. Context

The Project will be developed in the Berau and Bintuni Bays in the Bird’s Head Peninsula of Papua. The enclosed Bays comprise a 200 km long and 25 km wide sheltered body of water that divides the Bird’s Head Peninsula from the remainder of Papua. The Bay comprises various ecosystems including mangrove habitat, beach forest, swamp forest, sago and nipa palm stands, lowland hill forest and savannah habitat. In many parts of the Bay the sago and nipa palm stands extend inland for long distances. One of the world’s largest stands of intact, old growth mangrove forest is located at the eastern end of the Bay approximately 80 km from the Project. These ecosystems are consistent with ecosystems found elsewhere in Papua and contain geographically widespread communities characterized by common taxa and low endemism (species found in only one location).

Administratively, the Project falls within the newly formed regency of Kabupaten Teluk Bintuni which was established by division of Kabupaten Manokwari in 2003. Nonetheless, the process of establishing government and building government capacity to meet the needs and priorities of its constituents is still in its infancy.

Kabupaten Teluk Bintuni comprises a relatively small population distributed over a large area, hence population densities are low. The main towns—Bintuni, Babo and Aranda—are small and relatively undeveloped with limited access, communications, services and utilities (i.e., education, health, electricity, water, communications, etc). While these towns serve as population centres, the majority of the population is distributed in villages scattered along the northern and southern shores of the Bay and in the mountain areas in the north of the regency. Seven tribal groups (suku) occur within the regency, namely the Sumuri (southwestern section), Irarutu (southern section), Kuri and Wamesa (eastern section), Soubh (northeast section), Sebyar/Kamberam (northwestern section) and Moskona (north, farther inland). While the tribes share various commonalities, particularly with regard to traditional customs (adat) and rights (hak ulayat) and the relative importance placed on natural resources, they are distinct groupings, this being most evident in the use of distinct languages. While the north and south shore environments are different, the villages utilize similar livelihood strategies based on sago collection and consumption, shifting cultivation with tuber

2 The Tangguh Project 17 crops, and/or commercial prawn harvesting. Transport and communication services are limited, as are provision of basic government services (education, health care, etc) and village-level utilities such as water and electricity.. Overall the socio-economic environment can thus be characterized as underdeveloped.

While rich in natural resources, the Bay is not a pristine, untouched environment. Rather, commercial extractive industries utilizing the Bay’s resource-rich environment have operated for several decades. Logging companies are operational on the northern and southern shores; oil palm plantation agriculture commenced in the 1990s, and the Bay itself has been subject to intense (and largely unrestricted) harvesting of marine resources (i.e., fish and prawns) by commercial trawling operations and local fishermen since the late 1980s. In addition, several areas have been settled by transmigrants (primarily from Java and Sulawesi) that engage in crop farming while also providing labor to the timber and prawn industries. Oil and gas exploration commenced during the Dutch occupation with oil being discovered near Wasior and Mogoi in 1939 and 1941 respectively. These fields were brought into production in 1954. Most operations were closed before Irian Jaya became a province of Indonesia in 1976. Over the last 20 years Bay-wide exploration for oil and gas has continued with ARCO and BG operating in the Bay.

2 .2 Development and Operations

2 .2 1. The Tangguh Project

The Tangguh Project comprises three license blocks (Berau, Wiriagar and Muturi) located in the Bay (Figure 2.1). These license blocks are operated in conjunction with the Government of Indonesia through Production Sharing Contracts regulated by the National ����������������������������������������Upstream �������������������������������Oil and Gas Implementing Agency (BPMIGAS–Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas). Development and operation of the Tangguh Project is occurring as a partnership between BP (and its partners) and BPMIGAS.

The Project will extract natural gas from large offshore reservoirs (Figure 2.2) and pipe it to an LNG plant for conversion to LNG. The LNG plant will be constructed on a 3,266 ha plot on the southern shore of the Bay. The LNG plant and its associated onshore facilities accounts for 40% of the land area acquired. The remaining 60% of the land will serve as an ecological buffer zone consisting of wetlands, mangroves, savannahs and riparian forests.

Once initial construction of the Project is complete, it will comprise the following onshore and offshore components:

 two offshore, unmanned production platforms

 ��������������������������������������������������������������������������������������������������BP acquired Atlantic Richfield, Inc. and all of its Indonesian assets (including its stake in the Tangguh Project) in September 2000.  �������������������������������������������������������������������������������������The Tangguh Liquefied Natural Gas (LNG) Project encompasses three Production Sharing Contracts (PSCs) in the Berau and Bintuni Bays. The Project (or Tangguh LNG) consists of both the pro-rated reserves in the PSCs and the planned LNG facility and associated pipelines and production platforms.  ���������������������������������������������������������������������������������������������BP, as the operator of the Project, has 37.16% of reserves, with the balance shared by China National Offshore Oil Corporation (16.96); Mitsubishi Corporation-INPEX Corporation (16.30%); Nippon Oil Corporation and Japan National Oil Corporation (12.23%); Kanematsu Gas (10.00%); and LNG Japan Corporation (7.35%).  ���������������������������������������������������������������������������������������������������������Securing the release of the land required by the Project has required: (i) the relinquishment of land by three land-owning clans and (ii) the resettlement of the Tanah Merah village community. The Project Resettlement program is described in the Land Acquisition and Resettlement Action Plan (LARAP).

18 BP Tangguh Integrated Social Program  a submarine gas transmission pipeline system, connecting the offshore and onshore facilities

 one onshore LNG processing facility, consisting initially of two trains able to deliver 7.6 million tons per annum (mtpa) of LNG to an export terminal and potentially expanding, depending on future energy demands and markets

 a seaport, consisting of docks and loading jetties for LNG tankers and general cargo

 additional infrastructure, such as workforce accommodation and offices, and

 an airstrip, control centre and maintenance facilities.

Figure 2.1 Location of Tangguh Project License Blocks

IRIANJPapAYA ua MUTURI PSC Mogoi Deep- 1

MUTURI PSC WIRIAGAR PSC

WD- Nam-1 1 WD-8 Sak-1 WD-6 V-1 V-4 V-8 WD- V- V- V- 7 7 V- WD- 3 5 V-9 WD-5 V-6 11 WD- 2 V-2 3 Roa-1 WIRIAGARDEEPFIELD WD- V-10 Wiriagar Deep Field4 VORWATAFIELD OfaweriROABIBAFIELD Vorwata Field BERAU PSC -1 Roabiba OfaweriOFAWER FieldI FIELD Field LNG Plant Wos- 1 WOSFIELD Ubadari- Wos Field 1

Ubadari- ARGUNI PSC 2 Ubadari Field

BABO PSC 0 10 20km

Figure 2.2 Location of Main Natural Gas Reservoirs in Berau and Bintuni Bays

2 The Tangguh Project 19

4 Construction of the LNG processing plant commenced in 2004. Operations are scheduled to begin in 2008 and will continue until at least 2047, assuming only two trains are in operation. Initially the Tangguh Project will involve production of a maximum of 7.6 million metric tons of LNG per year from between 1,400 to 1,500 million standard cubic feet per day (MMscfd) of natural gas feedstock. Additionally, a maximum of up to 9,000 barrels per day (bpd) of condensate will result. The natural gas feedstock will come from up to four offshore platforms and a total of up to 48 wells. The LNG will be exported (by tanker) to markets in the Asia Pacific and beyond. Based on current reserves and initial two train capacity, the operational lifespan of the LNG plant will be over 40 years.

2 .2 .2 Construction Phase Activity Description

Construction of all LNG facilities has been awarded as three Engineering, Procurement & Construction (EPC) Contracts (i.e., LNG plant, offshore platforms, and pipelines). The LNG plant contract will include LNG processing and storage facilities; seaport facilities; accommodation; airfield; and ancillary facilities such as roads, communications and waste management installations. All facilities will be located within the Project property. The offshore platforms contract will include all platform facilities with the exception of gas production wells. The pipelines contract will cover the gas delivery pipelines from the platforms to the LNG site, including the shoreline crossing.

A consortium of Kellogg Brown Root-Japan Gas Corporation-Pertafinikki (KJP) has been appointed as EPC Contractor for the LNG Plant. To mitigate schedule risks associated with delays in signing of the contract, the Project commenced an Early Work Programs (EWP) agreement with KJP in 2004. The EPC contract was signed in March 2005. The bidding process for the EPC contractor for platforms and pipelines has been completed with Saipam being appointed as EPC contractor to deliver both packages. A separate contract will be awarded for drilling of gas production wells.

Many items of plant and equipment, such as the offshore platforms, will be fabricated at existing construction facilities elsewhere in Indonesia. These items will be transported to site using barges, and, in the case of onshore items, off-loaded at the construction jetty for subsequent erection on site.

Commissioning of the first train is expected to commence in 2008, with first LNG production in 2008. The second train is expected to be completed within 6 months of completion of the first train. Tangguh has sufficient Sales Purchase Agreement (SPAs) for Trains 1 and 2 to support operations through 2035.

LNG plant construction workforce requirements increase from 1,000 labourers in the first year of construction to a peak of 5,800 labourers in the third year of the Project. Through the AMDAL the Project has committed to offering one construction phase position to every DAV household. The remainder of the workforce will be sourced from the Bay, the Birds Head, Papua and other provinces.

Finally if and when additional trains are constructed, there will be up to 3,000 jobs at peak construction for each subsequent future train and about 50 additional personnel for operations workforce for each new train.

 ������������������������������������������������������������������During the AMDAL process the Project categorised nine villages as “�Directly����������������� Affected” using����� various criteria including implementation of exploration phase seismic work, necessity of physical relocation, loss of land, proximity to the proposed development and the possibility of future impacts based on possible offshore development locations. Definition and identification of DAVs has been associated with commitments to deliver socio-economic development assistance to these villages.

20 BP Tangguh Integrated Social Program 2 .2 .3 Operational Phase Activity Description

Natural gas will be processed, liquefied and stored in tanks prior to export. LNG will be loaded into LNG tankers with capacities of between 85,000 and 165,000 m3. Based on a two train start-up, an estimated 130 ship loads will be required to transport one year’s production, implying that one ship will be loaded every three days.

Overall the LNG plant will operate with minimal interaction with the surrounding environment. At its initial two-train development, Plant Facility Operations will require a site workforce of approximately 250 people, thus providing employment for 450 people if allowance is made for rotation of personnel. In addition, local contracts will be established for support services such as plant and facility maintenance, Harbour and Marine O&M, and catering, which are expected to employ an additional 300 people.

Safety exclusion zones will be established around the offshore platforms, the submarine gas pipeline and the onshore facility. A 500-meter radius exclusion zone will also be established for the offshore platforms. An exclusion zone, in which anchoring and trawling activities will be excluded, will apply for a distance of 500 m on each side of each pipeline. Finally an offshore safety exclusion zone of 695 ha, will surround the seaport, including an area extending 620 m from all sides of the LNG dock, plus an area extending 120 m from the Combo Dock. The 695 ha exclusion zone around the seaport facilities will reduce the area available to local people for harvesting of marine produce, and will decrease accessibility to areas of sago and other resources. Similarly exclusion zones around off-shore platforms and pipelines may affect the operations of the commercial and traditional fisheries.

2 .3 Project Impacts

The development and operation of the Tangguh Project has the potential to bring many and varied impacts, both positive and negative, both direct and induced, to local, regional, provincial and national stakeholders. These impacts include:

 increased revenue flows to the provincial and national governments through the Indonesian government’s Production Sharing Contracts and the Papuan Special Autonomy Law (PSAL) (under the PSAL, for the first 25 years the GOI Project- derived revenue will be shared between Papua (70%) and the Indonesian central government (30%); after 25 years, revenues will be shared 50:50 between the central government and the province)

 participation of the Bintuni Bay, Bird’s Head and Papuan communities in construction and operational phase LNG-related employment

 participation of the Bintuni Bay, Bird’s Head and Papuan businesses in construction and operational phase LNG-related contracts for goods and services

 benefits from various Project-sponsored socio-economic and environmental development programs implemented at the village, regency and Bird’s head levels

 ���������������������������������������������������������������������������������������������������At this time considerable political and legal uncertainty regarding the implementation of the PSAL persists. Consequently the revenue implications of the PSAL are also uncertain.

2 The Tangguh Project 21  various direct Project impacts including environmental impacts, impacts on Directly Affected Villages and involuntary resettlement impacts

 various potential adverse Project and/or Project-induced impacts including those typically associated with the establishment of resource extraction projects in remote areas, i.e., in-migration; economic marginalization; dilution of cultures, customs, hak ulayat; increased potential for conflict (conflict over access to benefits, ethnic conflict, etc); increased security risk; increased rates of change and a sense of loss of control; economic boomtown effects; increased alcoholism and prostitution; adverse health effects including increased STDs; increased rate of resource depletion and environmental degradation

A complete and detailed description of these impacts is provided in Chapter 6.

2 .4 Conclusion

The Tangguh Project requires a small footprint of land. The construction period is associated with substantial change with opportunities to participate and benefit occurring in employment and business. During operations the LNG facility will be operated by a relatively small skilled workforce. Nonetheless there will be ongoing requirements for the supply of various goods and services. The significance of the Tangguh Project for the Bay, the Bird’s Head and Papua lies in the catalytic effects of investment and construction as well as potential increased gas-derived revenue flows to Papua.

22 BP Tangguh Integrated Social Program 3 Legal Framework

In establishing the framework for the Tangguh Project’s Integrated Social Program, the Project has taken into account relevant aspects of both national and regional legislation. The following sections provide a general overview of the legislation that the Project has considered:

 Section 3.2 describes Indonesian legislation pertaining to recognition, identity and welfare of indigenous people

 Section 3.3 describes legislation which deals specifically with land and other natural resources

 Section 3.4 describes legislation that is generally applicable to Project activities and indigenous people

3 1 . Introduction

Recognition of the existence of indigenous communities, and the identification and protection of the rights that they may have, has been a difficult issue in the Republic of Indonesia. Such difficulty finds its basis in the wording of the 1945 Constitution, which describes the nature of the unitary state of Indonesia. The focus in the Constitution is on the State, based on the sovereignty of the people, protecting all people and the entire territory of Indonesia on the basis of unity. This is fundamental to understanding the scope that exists within Indonesian law to deal with claims for special treatment, whether these are in relation to a region (Papua) or a specific group of people (indigenous people).

While references to traditional or adat communities are to be found in various pieces of Indonesian legislation, particularly in the late 1990s, it was only in 2000 that such recognition found its way into the Indonesian Constitution. However, as made clear by the new Article 18B(2) (discussed in more detail in Section 3.2.2.1), this recognition is closely tied to, or indeed is based on, the overriding concept of the unitary state of Indonesia and the requirement that such rights must be in accordance with the ongoing development of society. As a consequence, from a legal perspective, the scope that exists for defining rights of adat communities is limited.

3 Legal Framework 23 Similar considerations apply to the status of Papua as a special region within Indonesia. In 1999, among much political debate, Indonesia initiated a process of regional autonomy. As a consequence, authority for specific matters was devolved from central government to regional governments. The move towards regional autonomy has been implemented further with respect to Papua, through the Papuan Special Autonomy Law (PSAL), which was passed in 2001. To an extent previously not experienced in Indonesia, the PSAL focuses on the recognition and rights of the indigenous population, and recognizes the special nature of Papuans within Indonesia, as one of a number of distinct groups. It states that “the natives of Papua Province is one of the groups of the Melanesian race, which is part of the ethnic groups of Indonesia which have a variety of cultures, histories, customs and their own languages”.

A major focus of the PSAL is on the benefits to be derived by the people of Papua. The PSAL states that the “management and use of the natural wealth of the Papuan Land has not yet been optimally utilized to enhance the living standards of the natives, causing a deep gap between the Papua Province and the other regions, and neglect of the basic rights of Papuan natives”. Thus a “new awareness among the people of Papua to peacefully and constitutionally fight for the acknowledgment of fundamental rights” has led to the implementation of “a special policy…based on the basic values covering protection and respect of ethics and morals, the basic rights of natives, Human Rights, the supremacy of the law, democracy, pluralism, and equality in position, rights and obligations as a citizen”.

In the history of the Indonesian Republic, adat rights and special autonomy are new and evolving concepts, and it is as yet unclear to what extent they can be formulated in the context of the unitary state.

3 .2 Recognition of Indigenous People

3 .2 1. The Unitary State of Indonesia

An understanding of the position of indigenous people within Indonesia is not possible without considering the nature of the State of Indonesia, as formulated in the 1945 Constitution. This provides that the State of Indonesia is a unitary state in the form of a republic with sovereignty in the hands of the people.

The Elucidation to the Constitution elaborates on this concept. The decision to form a unitary state and a republic is a manifestation of the basic idea of the people’s sovereignty. This concept of a unitary state, which protects and accommodates all people without exception, calls for the unity of all Indonesian people. According to the Elucidation, this is one of the principles of the State that must never be forgotten.

The original Article 18 of the Constitution (now expanded into three Articles, referred to below) recognized the division of the territory of Indonesia into large and small regions, with due regard for the principles of deliberation within the government system and the hereditary rights of special territories. The Elucidation states that because Indonesia is a unitary state (referring to the Dutch term, eenheidstaat), there can be no region under its jurisdiction that constitutes another state

1 The Regional Autonomy Laws are described in further detail in Section 3.4.2  ��������������������������������������������������������������������������������������������������The Elucidation to the Constitution has been of major assistance in understanding the Articles of the Constitution. While it is no longer formally part of the Constitution, it is clearly the inspiration for many of the recent amendments, and continues to be important as a reference in understanding the Constitution.

24 BP Tangguh Integrated Social Program (staat). All regions with autonomous status or which form an administrative unit must respect statutory regulations.

The Elucidation specifically refers to special regions. These existed at the time as a legacy of the Dutch era, and are identified as self-governing regions and village communities, the desa (village) in Java and Bali, the nagari (native land) in Minangkabau, the dusun (hamlet) and marga (clan) in Palembang and other social-administrative units. The Elucidation states that the Republic of Indonesia respects the status of such special regions, and any government regulation on such regions “shall have due regard to their hereditary rights”.

3 .2 .2 Adat Communities and Rights

3 .2 .2 1 . The 1945 Constitution

As discussed above, the original form of the Constitution recognized the hereditary rights of special territories. In addition, the original Article 32 placed an obligation on the government to advance the national culture. The Elucidation states that the ‘national culture’ is formed of “the old and indigenous cultures (kebudayaan lama dan asli) which were the peak of cultural life in all regions in Indonesia”. Again, the focus was on unity: cultural activities should lead to the advancement of civilization and culture, and the strengthening of unity. New elements of foreign cultures may be accepted if to do so can develop or enrich the national culture and raise the human dignity of the Indonesian people.

The Indonesian Constitution has been amended four times. The Second Amendment in 2000 expanded Article 18, adding for the first time references to adat law communities (kesatuan- kesatuan masyarakat hukum adat) and traditional rights (hak-hak tradisional). Article 18B of the Constitution now states:

(1) The State shall recognize and respect units of regional authorities that are special and distinct, which shall be further regulated by law, and

(2) The State shall recognize and respect units of adat law communities together with their traditional rights as long as they remain in existence and are in accordance with the societal development and the principles of the unitary state of the Republic of Indonesia, and shall be further regulated by law.

The Second Amendment also added provisions on Human Rights to the Constitution. Article 28I relates to traditional communities (masyarakat tradisional) and states:

(3) The cultural identities and rights of traditional communities shall be respected in accordance with the development of the times and civilization.

3 .2 .2 .2 The Human Rights Law

The 1999 Law on Human Rights recognizes the existence of adat communities. Article 6 requires that the differences and needs of indigenous people must be taken into account and protected by the law, the public and the government. It recognizes that adat law and customs are still widely

 ������������������������������������������������������������������������������������������The First Amendment on 19 October 1999; the Second Amendment on 18 August 2000; the Third Amendment on 10 November 2001; the Fourth Amendment on 10 August 2002. 4 Described in more detail in Section 3.4.3

3 Legal Framework 25 recognized within adat communities. It requires that, within a human rights context, adat law should be honoured and protected, specifying however that this must take into account the law and regulations in force. Thus while the Human Rights Law recognizes adat law and adat rights (referring specifically to traditional rights to land), such recognition is only possible to the extent that these are “not against the principle of the State law, based on justice and the welfare of the people.”

3 .2 .2 .3 Minister of Agrarian Affairs

The Regulation of the Minister of Agrarian Affairs 5 of 1999 (discussed in more detail in Section 3.3.3.1 below), in which the central government sought to address issues arising in relation to adat lands, contains a general description of what constitutes an adat community. The regulation defines anadat community as a “group of people …who feel they are still bound by their customary law system as traditional members of a particular legal affiliation, and who recognize and apply the ‘rules’ of such union in their daily lives”.

3 .2 .2 .4 The Regional Autonomy Law

Law 32 of 2004 on Regional Government (Law 32) recognizes adat law communities (kesatuan masyarakat hukum adat) and their traditional rights (hak tradisional), confirming that the State acknowledges and respects the adat law communities and their traditional rights, providing they still exist, and that to do so accords with the development of the community itself, and the principles of the unitary state of the Republic of Indonesia.

3 .2 .2 .5 The Papuan Special Autonomy Law (PSAL)

The PSAL deals specifically and in detail with issues relating to the protection ofadat communities and hak ulayat within the existing Indonesian statutory framework. It definesadat as “the hereditary customs acknowledged, adhered to, institutionalized and maintained by the local adat community” and hak ulayat as the “right of association controlled by a specific adat community over a specific area, covering the right to utilize the land, forest and water, and their contents, in accordance with statutory regulations”.

The PSAL states that the existence of adat (hak ulayat) rights in different adat communities within Papua varies because of the social and economic development of the adat communities themselves. It recognizes (in certain cases implicitly) two key difficulties with adat rights. Firstly, the tension between the statutory or formal legal system and adat rights, which frequently gives rise to uncertainty and conflict, and secondly, the difficulty of identifying the true characteristics of adat (hak ulayat) rights and adat norms.

The PSAL recognizes the presence in Papua of indigenous Papuans and Papuan residents. An indigenous Papuan (orang asli Papua) is defined as (i) a person originating from the Melanesian race which comprises the indigenous tribes within the province of Papua and (ii) a person who is accepted and recognized as an indigenous Papuan by the Papuan adat community. A Papuan resident is a person who, under prevailing provisions, is registered and living in Papua.

The PSAL identifies two different types of adat communities:

 an adat community (masyarakat adat), which is the members of the indigenous Papuan (asli Papua) community living in and bound to a particular area and subject to certain adat with high solidarity among its members

26 BP Tangguh Integrated Social Program  an adat law community (masyarakat hukum adat), which is the members of the indigenous Papuan community who have lived since their birth in a particular area and are bound and subject to certain adat law with high solidarity among its members

Article 42 states that economic development in Papua is based on democracy, and must be carried out giving the adat community and the local people the widest opportunities. It requires investors in Papua to acknowledge and respect the rights of the local adat community. In developing the economy, business opportunities shall be granted with the aim of empowering the adat community to play a role in the economy.

The PSAL obligates the Government of Papua to acknowledge, respect, protect, empower and develop the rights of the adat community based on the provisions of statutory regulations. Such adat rights are the ulayat rights of the adat law community and the individual rights of the members of that community.

A Papua People’s Assembly (Majelis Rakyat Papua (MRP)) was established in December 2005 to implement special autonomy in Papua. This is the cultural representation of the Papuan natives, and will be granted certain authority to protect the rights of the Papuan natives, based on respect for adat and culture, empowerment of women and achieving a harmonious religious life. Among its tasks, the MRP (made up of Papua natives, comprising adat and religious representatives and women) will be required to observe and convey the aspirations and complaints of the adat and religious communities and women in relation to their rights as Papuan natives, and to facilitate resolution of such issues. The MRP will have the obligation to: (i) maintain the integrity of the unitary state of Indonesia and to serve the people of Papua; (ii) to apply Pancasila, the 1945 Constitution and comply with all statutory regulations, and (iii) to develop the preservation of adat life and the culture of the Papuan natives.

3 .2 .3 Education

Article 31 of the 1945 Constitution provides that each citizen has the right to receive education. The government is obliged to manage and carry out a single national education system that can promote faithfulness, devotion and morality for the nation in order to develop the intellectual capacity of the nation.

A new education law was passed in 2003 (Law 20), as a response to the reformasi movement that generally mandates principles of democracy, decentralization, justice and the upholding of human rights in running a democratic state. Most of the provisions of Law 20 apply to adat communities, setting out statutory rights and obligations for Indonesians as citizens with regard to access to education.

Law 20 specifically recognizes the rights of an adat community to receive education. Article 5(3) states “citizens living in remote or underdeveloped areas as well as adat communities have the rights to obtain special-treatment education”. Further, Article 32(2) states “special-treatment education is an education provided to learners located in remote or underdeveloped areas, remote adat communities, and/or to those suffering from natural disaster, social disaster, and economic

 Pancasila describes the five fundamental tenets of the Constitution: a belief in the one and only god; just and civilised humanity; the unity of Indonesia; a democratic life led by wisdom of thoughts in deliberation amongst representatives of the people; and achieving social justice for all the people of Indonesia.

3 Legal Framework 27 impediment.” Article 32(3) states that a provision of special-treatment education shall be regulated further in a government regulation.

In addition, Article 55 provides the rights for the community to carry out a community-based education (both formal and non-formal education) in proportion to the uniqueness of the community’s religious belief, social environment and culture, and for the benefit of the community concerned. The provider of this type of education must carry out development and management of the education in accordance with national education standards. The funds for this education can be obtained from the provider itself, community, government, regional government or other sources providing it is obtained pursuant to prevailing laws and regulations. The institution providing the community-based education can procure technical assistance, financial subsidy and other type of resources from central or regional government. The law states that the community participation with respect to this type of education will be further regulated in a government regulation.

3 .2 .4 Adat Institutions

Government Regulation 76 of 2001 (GR 76) (issued under the regional autonomy laws) specifically mandates regional government to recognize and honour adat customs and adat institution that exist within its region, in accordance with the provisions of the Human Rights Law (Law 39).

Further GR 76 states that regional government may stipulate policies in effort to empower, preserve and develop adat customs and adat institutions. These policies should be set out in a regional government regulation issued at the regency (kabupaten) level, and contain the following:

 a mechanism for the empowerment, preservation and development of adat customs and adat institutions

 hierarchy, duties, responsibilities, and functions of adat institutions

 rights, obligations and the authority of adat institutions, including the authority to settle matters relating to adat conflicts

 the organizational structure of adat institutions

 the relationship between adat institutions and the village government (pemerintah desa) and the regency government (pemerintah kabupaten)

3 .2 .5 Social and Family Welfare

Presidential Decree 111 of 1999 (PD 111) was issued to provide guidelines on how to promote social welfare for a ‘remote adat community’ (passed under Law 6 of 1974 concerning Social Welfare). PD 111 uses the term ‘remote adat community’ interchangeably with the term ‘isolated community’ Such a community is defined as a group of people living with their own society and culture, which is geographically nomadic and is less exposed or under-developed in terms of receiving services and networks in the sector of social, economic and politics. The characteristics of a remote adat community are as follows:

 they are formed in a small community, are isolated and living homogeneously

 their social fabric is created on the basis of family ties

 they commonly live in a remote area and are relatively unreachable by other communities

 they live under a 'sub-system economic system'

28 BP Tangguh Integrated Social Program  they use simple equipment without applying any modern technology

 their livelihood is dependant upon the natural environment and resources within the area in which they currently reside

 they have limited access to government, social, economy and administrative- related services

PD 111 states the objective of promoting social welfare for a remote adat community is to empower the community in all aspects of life so that they can live properly (physically, mentally and socially) and that they can participate in national development. The promotion of remote adat communities should be carried out with due consideration to the relevant traditional adat custom. It is the government’s responsibility to carry out this duty, at both central and regional levels. At the central level, the Minister of Social Affairs is required to identify and to make an inventory of the existence of remote adat communities and to draw up a program that deals with the promotion of social welfare for communities.

Promotion of social welfare for remote adat communities will be carried out in various sectors, including resettlement, population, religion, agriculture, crafts, and education. The program will be implemented through counselling, socialization, provision of services, and assistance. The Minister of Social Affairs is responsible for monitoring the evaluation and coordination with the regional government and other relevant agencies.

PD 111 provides an avenue for community members to participate in this program, which can be done through:

 giving opinions and advice on the policy and program designed to promote social affairs

 reporting to the government and other related agencies in the event the community discovers a group of people that is considered to be a remote adat community

 granting of assistance, services and/or forming an operation in connection with the program to promote social welfare

 providing infrastructure

 carrying out any activities relevant to the promotion of social welfare

A forum to promote social welfare will be formed by central government. This forum, which is an agency of the government, will comprise members from government administration, experts, community leaders and organizations engaged in social activities. This forum is responsible for drawing up a policy, plan and program to promote social welfare.

3 .2 6 . The Environment

Article 9 of Law 23 of 1997 requires the government, in stipulating the national policy on environmental management and spatial layout, to observe the religious values, adat customs (adat istiadat), and the values existing within the community. The Elucidation further explains that, in drawing up the national policy, the government is obliged to observe rationally and proportionally the potential, aspirations, needs and values that exist and are developing within the community. The Elucidation cites the adat community as an example, stating that attention should be given to an adat community that is in existence, where its livelihood depends upon the natural resources that exist within the area the adat community is located.

3 Legal Framework 29 3 .2 7 . International Conventions on Indigenous People

There are a number of international conventions that relate to indigenous peoples. These include:

 Universal Declaration of Human Rights

 International Covenant on Civil and Political Rights (CCPR)

 ILO Convention No 107 (1957) Protection and Integration of Indigenous and Other Tribal and Semi-tribal Populations in Independent Countries

 ILO Convention 169 (1989) Convention Concerning Indigenous and Tribal Peoples in Independent Countries

 UN (1993) Draft Declaration on the Rights of Indigenous Peoples

Indonesia joined the United Nations in 1950. As a consequence, Indonesia adheres to the Universal Declaration of Human Rights (originally adopted in 1948), which has formed the basis for many human rights instruments. Indonesia has not signed the CCPR or the ILO Conventions 107 and 169 (107 is no longer open for ratification). Similarly, Indonesia has not been involved with the Draft Declaration on the Rights of Indigenous Peoples. As of the end of 2004, Indonesia was also a party to the International Convention on the Elimination of all Forms of Racial Discrimination (it became a party in 1999), the International Convention on the Elimination of all Forms of Discrimination against Women (1984), the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (1998), and the Convention on the Rights of the Child (1990). It is a signatory to the International Convention on the Protection of the Rights of all Migrant Workers and Members of their Families (2004).

3 .3 Indigenous People and Natural Resources

The basis for the way in which natural resources are to be managed in Indonesia is set out in Article 33 of the 1945 Constitution. Over the years there has been a significant amount of debate and discussion regarding what these words really mean, for example, to what extent the State can delegate authority or allow management by third parties without undermining the basic principles of State control and utilization for the benefit of the people as a whole set out in Article 33.

The way in which specific natural resources have been dealt with over time differs in detail, but generally reflects the provisions of Article 33. Set out below is a summary of applicable regulations in relation to land, forest, marine, oil and gas and water. The PSAL, while containing guidelines on the way in which natural resources are to be treated within Papua, explicitly recognizes the authority of central government regarding the utilization of natural resources.

3 .3 1 . The Constitution

The basic principle with respect to the ownership and control of natural resources is set out in Article 33 of the Constitution. This states:

(1) The economy shall be organized as a common endeavour based upon the principles of the family system.

(2) Sectors of production that are important for the country and affect the life of the people shall be under the power of the State.

(3) The land, the waters and the natural resources within shall be under the powers of the State and shall be used to the greatest benefit of the people.

30 BP Tangguh Integrated Social Program (4) The organization of the national economy shall be conducted on the basis of economic democracy upholding the principles of togetherness, efficiency with justice, sustainability, environmental awareness, self-reliance, and keeping a balance in the progress and unity of the national economy.

(5) Further provisions on the implementation of this article shall be regulated by law.

The key provision that directs the way in which resource legislation is framed is Article 33(3), which states that all natural resources are under the control of the State and should be used for the benefit of the people of Indonesia as a whole. In 2003, the Constitutional Court considered the application of Article 33 in two important cases, relating to oil and gas and electricity. It stated that Article 33 grants the State the power to create policies, issue legislation, administer the licensing of and manage and monitor the exploitation of natural resources for the greatest benefit of the people.

Given the above consideration, one can draw a conclusion that where the State has stipulated, through the adoption of a statutory law by the legislative body, that a specific natural resources is considered important to the country and/or affects the life of the people, the State may exclude individuals and group of individuals from having any rights or may limit their rights, in respect of this particular natural resources.

3 .3 .2 General Provisions on Natural Resources in the PSAL

The status of Papua as a special autonomous region is set out in the PSAL, which contains specific provisions on natural resources. The recitals state that a special policy is required for Papua to minimise the gap between the province and other regions; to improve the living standards of Papuan people; and to provide opportunities to indigenous Papuans. The recitals stress that the integration of the nation must be maintained within the unitary state of Indonesia, and that the policy must take place within the framework of the unitary state. Special autonomy is the special authority granted to Papua to regulate and manage the interests of the local people, on its own initiative based on the aspirations and fundamental rights of the people of Papua.

3 .3 .2 1 . Authority of the Papuan Government over Natural Resources

Article 4 of PSAL states that the authority of the Papuan Province shall cover all sectors of administration, save for those specifically excluded in the article. The Elucidation states that this authority will not include “the authority of the Government covering…the utilization of natural resources”. The reference to government is to Pemerintah, defined as central government (the President of Indonesia and the Ministers). The PSAL states that the nature of such authority, and the way in which it can be implemented, will be further specified in a Perdasus (Special Regional Regulation, issued pursuant to the PSAL) or a Perdasi (Provincial Special Regulation, issued pursuant to the general law).

 ���������������������������������������������������������������������������������������������Case No.001-021-022/PUU-I/2003 regarding Electricity in respect of the 1945 Constitution and Case No.002/PUU-I/2003 regarding Oil and Natural Gas in respect of the 1945 Constitution.  ������������������������������������������������������������������������������������������������Implementation of the PSAL is still in progress. The development of implementing regulations is dependent on the establishment of the institutions required under the Law.

3 Legal Framework 31 3 .3 .2 .2 The Exploitation of Natural Resources

The PSAL contains provisions on how the natural resources of Papua will be used to benefit the people of Papua. The Elucidation deals with this carefully, stating that broader authority means greater responsibility for the province and the people of Papua in administrating and managing the utilization of the natural wealth, largely for the welfare of the people of Papua as part of the Indonesian people, according to statutory regulations. The PSAL states that economic ventures in Papua utilizing natural resources (which shall be specified in a Perdasus) shall be carried out by respecting the rights of the adat community, ensuring legal certainty to investors and preserving the environment and sustainable development.

The Elucidation states that as part of the continuous development in Papua, the Papuan Government is obliged to allocate part of the Budget of the Papuan Province that is obtained from the exploitation of Papuan natural resources to a form of permanent fund, the proceeds of which can be utilized to finance various future development activities. Under Article 36, revenues from oil and gas are specifically targeted. It states that, of the revenue that Papua derives from oil and gas, at least 30% shall be allocated to education and at least 15% to health and nutrient improvement.

Article 39 states that further management in the context of the utilization of natural resources should be carried out in Papua with observance for sound, efficient and competitively economic principles. This article deals specifically with the processing of raw materials that are produced from Papuan natural resources, specifying oil and gas, general mining, forestry, sea fishery and agricultural sectors. The aim of the article is to ensure, as far as possible, that the added value derived from processing raw materials should have a positive effect in Papua, by increasing provincial income and creating jobs. However, the PSAL recognizes the importance of economic principles: if it is not economic to process the raw materials within Papua, this may take place elsewhere.

3 .3 .3 Land

The extent to which adat land rights are recognized in national land law and policy of Indonesia is varied. While the Basic Agrarian Law referred to below states that adat law forms the basis for the new national agrarian law, it also states that adat (hak ulayat ) rights will be recognized only insofar as they are not contrary to national law and interests.

Under Dutch colonial law, Indonesia was governed in two different ways. Certain areas were directly governed by the colonial administration (daerah Gubernemen) and others were governed indirectly, though local sultans and kings (daerah Swapraja). The basis for the regulation of land during the later period of Dutch rule and until the enactment of the Basic Agrarian Law was the Agrarian Law (Agrarische Wet) of 1870 (Staatsblad 1870−55). This recognized the use of land by the indigenous population but, in certain circumstances, allowed the government to grant land rights that could override indigenous rights.

The status and treatment of adat land rights within a legal regime where priority is given generally to registrable land title has been a persistent source of uncertainty in Indonesia. Accordingly, in recent years there has been a growing attempt to identify adat rights and to resolve the tension that exists between these rights and statutory law. While the PSAL contains specific provisions onadat land rights, it recognizes the importance of statutory regulations in governing land affairs in order to achieve certainty.

32 BP Tangguh Integrated Social Program 3 .3 .3 1 . The Basic Agrarian Law

The basis for national land law in Indonesia is the Basic Agrarian Law of 1960 (BAL). The intention of the law was to abolish the dual land law system under Dutch colonial rule. Under the Dutch system, certain land was governed by rules of ownership set out in the Netherlands East Indies laws, while customary law governed other land. The aim of the BAL was to simplify this system and provide the basis for a uniform national land law that would allow for legal certainty, and impose certain basic criteria in relation to land ownership.

The BAL provided that all land rights should have a social function and that excessive land holdings should not be permitted. It also stipulated that the government could acquire land if this was in the public interest, following due process and the payment of proper compensation. The BAL identified a number of different types of land titles, and anticipated the progressive registration of land throughout Indonesia.

Article 5 of BAL states that the agrarian law relating to the land, water and air was the existing adat law to the extent that this was not contrary to the national interests of the State based on national unity; Indonesian socialism; regulations of the BAL; other prevailing regulations and religious stipulations. In������������������������������������������������������� light of the above considerations, the���������������� nature of any adat rights is clearly limited.

3 .3 .3 .2 Regulation of the Minister of Agrarian Affairs 5 of 1999

The Regulation of the Minister of Agrarian Affairs 5 of 1999 (Decree 5) sets out the guidelines for the settlement of issues relating to adat land rights. It describes such rights as communal rights that belong to an adat community which, pursuant to the customary law of that community, reside with that specific adat community. Such rights exist over a specific area that constitutes the living environment of the adat community, in which they may exploit the natural resources, including the land, for their lives and livelihood. The right to do so arises as a consequence of the inseparable physical and spiritual relationship existing from generation to generation between the adat community and its traditional land.

Decree 5 states that adat land rights can be exercised by the adat community accordingly to the provisions of local adat law, providing such rights actually exists. These land rights will be treated as still existing if:

 a group of people exist who feel they are still bound by their customary law system as traditional members of a particular legal affiliation, and who recognize and apply the ‘rules’ of such union in their daily lives

 there is a specific plot of communal reserved land which constitutes the living environment of the members of the legal affiliation, which is the place from which they derive the daily necessities for their lives, and

 a customary law system regarding the settlement, control and use of the adat land still prevails, and is adhered to by the members of the legal affiliation.

A significant feature of this decree is the requirement to carry out an examination and determination of whether adat land rights still exist. The decree places the responsibility for doing so on regional government, involving customary law experts, the adat community itself, NGOs and government agencies who are managing natural resources. Decree 5 requires that the existence of adat land belonging to a specific adat community must be recorded on a land registration map showing the boundaries of the land. Such land should be registered at the land registry. The decree makes it clear that the exercise of adat land rights by adat communities will not apply to plots of land which

3 Legal Framework 33 (at a specified time) are already possessed by individuals or statutory bodies by virtue of a certified land title under BAL, or are plots of land already acquired or appropriated by government institutions, statutory bodies or individuals pursuant to the prevailing provisions and procedures.

3 .3 .3 .3 PSAL Provisions on Land

Traditional land rights are dealt with in Article 43 of the PSAL, and the Elucidation. It confirms that an ulayat right, if in reality it still exists, will be exercised by the adat authority of the adat law community according to the provisions of the local adat law. An ulayat right is the joint right of members of the adat law community concerned, and is governed by the rules of that community. The right belongs to the community, not to individuals or to adat authorities. The adat authority has the duty to manage such rights for the benefit of the community.

The PSAL recognizes two things: (i) an ulayat right is governed by certain adat rights within a specific adat law community and is a communal right, and (ii) different ulayat rights exist in different adat communities in Papua, because of the social and economic development of the adat community itself (relating to both internal and environmental impacts). Hak ulayat land rights can be transferred after consultation with the adat law community and the community members, together with the payment of compensation. The Elucidation states that a hak ulayat land right is recognized by national land law to the extent that, in reality, it still exists. However, a relinquished hak ulayat land right cannot be revived.

Prior to obtaining ulayat rights from an adat law community, there must be consultation between all parties. Where the government or the private sector wishes to acquire land to which adat rights exist, compensation must be given in the form of cash, replacement land, resettlement, equity or any other form of compensation that is jointly agreed between the parties. The PSAL requires that the acknowledgement, respect and protection given to the adat community with respect to their hak ulayat rights should also be given to third parties who have lawfully obtained the hak ulayat right over land in accordance with appropriate procedures and statutory regulations. In the interests of legal certainty, once such a land right has been obtained, heirs cannot reclaim it.

3 .3 .4 Forest

Approximately 70% of Indonesia is designated as forest, under the jurisdiction of the Ministry of Forestry rather than the land office. The rights of adat communities in relation to forests and forest products are dealt with in a number of pieces of legislation. In general however, such rights are limited, and are subject to other rights that have been granted by the Ministry of Forestry, in particular the granting of concessions for commercial purposes.

Law 5 on the Basic Forestry Law was enacted in 1967, with the objective of accelerating Indonesian economic growth through exploitation of natural resources, including forest. This Law was replaced in 1999 by Law 41 on Forestry (Law 41).

3 .3 .4 1 . Authority over Forests

The control of forests by the State does not constitute ownership. This means that the State has the controlling authority over the forest, whilst the ownership of the forest remains within the people through the State. The State further grants authority to the government to regulate and manage all things related to forests in Indonesia. In addition, the government is authorized to grant licenses and rights to other parties to undertake activities in the forestry sector.

34 BP Tangguh Integrated Social Program In line with the regional autonomy law, the implementation of certain forest management activities which are operational in nature (for example, the issuance of permits) are delegated to regional governments at the provincial and regency/municipality levels. However, forest management activities, which are of national or macro importance, are vested with central government.

3 .3 .4 .2 Types of Forests

Law 41 recognizes two categories of forests, namely State forest and proprietary forest:

 Proprietary forest is defined as forest located on the land on which a land right (or land title) has been granted pursuant to the BAL.

 State forest is defined as forest located on land on which a land right or title has not been granted, including forests previously under the control of adat communities such as ulayat forest and clan forest.

The Law states that the inclusion of forests previously under the control of adat communities into the definition of State forest is made as a consequence of the existence of rights of the State, as the people’s organization in the concept of the unitary state, to control and manage all natural resources by virtue of the Constitution. Such inclusion, however, allows the State, through the government, to grant permits (including forest concessions) to logging companies to exploit the forest that may contain adat forest.

Recognition of adat law communities and their rights is complicated. Article 67 of Law 41 states that adat communities upholding their adat laws, for so long as they actually exist and their existence is recognized, may undertake activities relating to forest management and collection of forest products. This specific recognition, however, is subject to confirmation of the existence of the adat community, as described below, and is difficult to achieve. Although Law 41 recognizes adat communities, it does not contain provisions to explicitly protect the ulayat rights of such adat communities.

3 .3 .4 .3 Adat Forest

Article 37 of Law 41 states that the utilization of adat forests (hutan adat) by an adat law community (masyarakat hukum adat) may be carried out in accordance with prevailing conditions. However, Law 41 requires verification of the existence of an adat law community and the issue of a local government regulation (Peraturan Daerah or Perda) confirming its existence. Further, the law states that the Perda confirming the existence of anadat law community must take into account research and study carried out by adat scholars, aspiration of local community, and opinions from leaders of the adat community as well as from relevant government institutions and other related parties.

A draft Government Regulation was prepared in 2002 with respect to the adat forest and adat law community. This draft regulation is intended to implement specific articles of Law 41. The draft contains provisions with regard to criteria for adat forest and adat law community, how to designate adat forest and adat law community, and how to manage adat forest.

3 .3 .4 .4 Community Forest

Forestry regulations also recognize community forest (rather than adat forest), but again, the process for such recognition is cumbersome. Minister of Forestry Decree 31/Kpts-II/2001 (Decree 31) sets out the authority of the local government to issue a permit to members of the community to carry out activities within a designated community forest. The purpose of setting up community

3 Legal Framework 35 forest is to empower a community to manage the forest while, at the same time, preserving the forest and the environment in order to increase the welfare of the community.

Decree 31 relates to the rights of the community in relation to forest areas that are designated as belonging to that community. The Bupati (Regent) has the authority to propose that forest be designated as belonging to a community. However, the criteria and procedures for this are to be set out in a further decree (which to date does not exist). The Bupati can make a proposal (submitted through the Governor) to the Minister of Forestry. The Governor can provide a recommendation to the Minister and, if accepted, the Minister will issue a decree designating the area as the community forest.

If such designation takes place, the communities that have been identified as having community rights to that forest can apply for a permit to the Bupati. The permit will allow them to carry out activities within the community forest. Decree 31 states that a community forest can be designated in an area that is zoned as protected forest or production forest, providing no permit (including a concession right) has already been granted to such forest.

3 .3 .4 .5 Adat Payments for Trees

Adat rights in relation to trees have been recognized in Papua. The Decree of the Governor of Papua, Decree 184 of 2004, sets out requirements, procedures and standards for granting of compensation (pemberian kompensasi) to adat community (masyarakat adat) for trees collected from ulayat rights (hak ulayat ) area within the Province of Papua. The requirement is imposed on the holders of forestry concessions (HPH (Hak Pengusahaan Hutan)), now called IUPHHK (Izin Usaha Pemanfaatan Hasil Hutan Kayu), holders of an IPK (Izin Pemanfaatan Kayu) (or tree-cutting permit) and other valid licenses issued in the Province of Papua.

The total amount of compensation to be paid is based upon the volume of wood cut, and varies depending on the species of the tree. The payment of compensation is deemed to include payment of compensation for use of land, access road, vegetation, trees, logs, and materials used for the access road, and the setting up a base camp. The compensation should be paid to the adat community who has hak ulayat to the trees based upon the adat community meeting (hasil musyawarah adat). The existence of the adat community and the owner of hak ulayat trees should be specified in a Bupati decree on the basis of the adat community meeting, with input from the Head of District, the holder of relevant concession and the adat community itself.

The compensation should be used wholly for the benefit and interest of the relevantadat community in order to support development of the economy for the community, development of adat institutions, village and public utilities, education and for religious purposes (all of which are to be determined on the basis of the adat community meeting). The Bupati and Head of Forestry in the Province of Papua will monitor the payment of compensation, as well as the use of such compensation.

3 .3 .5 Marine

The laws on fishing detailed below do not discuss specifically adat rights (over fishing grounds or marine produce), but contain provisions on traditional fishermen that are relevant to the adat community. Law 9 of 1985 on Fisheries (Law 9, replaced in late 2004, see below) states that the Government of Indonesia has the authority to manage fishery resources. This is primarily carried out through licensing activities aimed at regulating access to, and the nature of, fishing activities, conserving marine resources, and generating income for both central and regional government. The

36 BP Tangguh Integrated Social Program law states that any individual or legal entity carrying out a fishery business must obtain a fishery business license, which separately regulates such business including the fees that must be paid.

3 .3 .5 1 . Traditional Fishermen

The law makes it clear that traditional fisherman and those who are dependent on fishing as their sole source of income are to be treated differently. One of the concerns of the statutory regime is to protect small-scale fishermen. The law provides that traditional fishermen and fish farmers who catch or breed fish as their sole means of income (in order to meet their daily consumption) are not obliged to obtain a permit for their activities, and are exempt from certain government imposed fees. A government regulation confirms also that fishermen carrying out fishing activities using non-motorized fishing boats or an outboard motor of specified capacity are also not required to obtain a fishery business license or to pay the levy which is imposed on fish catches (a percentage based on the selling price of fish).

The new law on Fisheries, Law 31 of 2004 (Law 31) contains no significant modification to the concepts set out in Law 9. The authority of the Government, however, with respect to the policy- making on the management of fishery resources is expanded. Regarding the protection of small- scale fishermen and fish farmers, Law 31 contains the same concept as in the old law. In addition, there are specific provisions with regard to assisting small-scale fishermen and fish farmers. The Government is required to empower small-scale fishermen and fish farmers through the provision of a working capital loan scheme, with low interest rates, that is both accessible and affordable. It is required to provide education, training and counselling to small-scale fishermen and fish farmers and to encourage the development of associations and fishery cooperatives.

Law 31 confirms that both small-scale fishermen and fish farmers are permitted to carry out their activities within the entire fishing territory of Indonesia. However, they are required to comply with regulations relating to conservation and any other regulations as stipulated by the Minister. While not being required to pay fees, they are required to report their activity to the relevant fishery authority, to facilitate the collection of statistical data and the empowerment of small-scale fishermen and fish farmers.

3 .3 6 . Oil and Gas Resources

The Oil and Gas Law 22 of 2001 (Law 22, which replaced the previous 1960 legislation) states that oil and natural gas are strategic non-renewable natural resources lying within the Indonesian territory, which are national assets that are controlled by the State. The control of the State will be carried out by the government, as holder of the authority to mine. The Elucidation refers to Article 33 of the Constitution, stating that the development of oil and gas should be optimized for the greatest prosperity and welfare of the people.

Activities in the upstream will be carried out by contractors, based on the execution of cooperation contracts with the upstream regulatory body (BPMIGAS). Article 11 states that each cooperation contract shall contain provisions relating to the development of the surrounding community and the rights of the adat community (jaminan hak-hak masyarakat adat). Where a new contract is to be tendered and granted (note all existing contracts will remain in place on the same terms and conditions until expiry), the government will consult with the relevant regional government.

Article 40 sets out certain responsibilities of contractors. Contractors will be responsible for developing the local environment and the local community (masyarakat setempat). The Elucidation state that this requirement means that the contractor must participate in developing and utilizing

3 Legal Framework 37 the potentials and skills of the local community, including by employing workers and improving their environment, so as to create harmony between the contractors and the surrounding community. The Ministry is responsible for supervising compliance with the requirements to develop the local environment and the community.

Law 22 makes it clear that the grant of a working area for oil and gas activities does not include any rights to the surface of the land. Oil and gas activities cannot be carried out in cemeteries, sacred places, the location of public infrastructure, nature or cultural reservations, or lands owned by customary communities (tanah milik masyarakat adat), without the approval of the relevant community and the government. If the government or a contractor wishes to use land within the designated working area, it must first reach agreement with the titleholder or user of the land. Only once a satisfactory settlement has been reached, with the payment of agreed compensation, can the land be used.

3 .3 7. Water

Under Law 7 of 2004, water resources are controlled by the State and may be utilized to the fullest benefit of the people. The “control” of water resources by the State lies on the hand of the Government and/or regional government but should recognize the ulayat rights (hak ulayat) of the relevant adat law community (masyarakat hukum adat) and any other rights equivalent to these rights, for so long as these rights do not conflict with the national interest and the prevailing laws and regulations. The Elucidation of the law explains further on “any other rights equivalent to the ulayat rights” which includes adat rights, which terms are used differently from one adat community to another. For example: tanah wilayah petuanan in Ambon, wewengkon in Java, and prabumian and payar in Bali.

The law provides, however, that the existence of ulayat rights of an adat law community over water resources must be recognized and confirmed by a regional government regulation. The Elucidation defines an adat law community as a group of people who are bound by adat law system as community members of an adat union that is formed on the basis of common residency or hereditary. The Elucidation further provides that the ulayat rights of an adat law community are considered in existence if they comprise of the following elements (a) the existence of adat community, (b) the existence of adat land, and (c) the existence of the relationship between the adat community and the adat land.

3 .3 .8 Revenue from Natural Resource Extraction

A key aspect of the regional autonomy laws has been to enable the regions to obtain a greater proportion of the revenue generated from the exploitation of natural resources within that region.

3 .3 .8 1 . Regional Autonomy

Under Law 33 of 2004 on Fiscal Balance between the Central Government and Regional Government (Law 33), the allocation of funding between central government and regional government should be in accordance with the following percentages, based upon revenues received from exploitation of the following natural resources:

Forestry: For revenues received from forest concessions, central government should receive 20%, whilst regional government should receive 80%. The same percentages apply for Provisi Sumber Daya Hutan (forest resources royalty or PSDH). For revenues received from Dana Reboisasi

38 BP Tangguh Integrated Social Program (Reforestation Fund), central government should receive 60%, whilst regional government should receive 40%.

General Mining: Central government should receive 20%, whilst regional government should receive 80%.

Fishery: Central government should receive 20% whilst regional government should receive 80%, �����������������to be distributed among all regional and municipal governments (i.e., not exclusive to those in Papua).

Oil: Central government should receive 84.5%, whilst regional government should receive 15.5%. Percentages are calculated after tax.

Natural Gas: Central government should receive 69.5%, whilst regional government should receive 30.5%. Percentages are calculated after tax and other charges.

Geothermal: Central government should receive 20%, whilst regional government should receive 80%.

There are also provisions that specify allocations for revenues received from land and building related taxes.

In addition, Law 33 now introduces specific percentage of allocations of funds between provincial level and regency/city level with regard to revenues allocated for the regional government portion.

3 .3 .8 .2 Special Autonomy

Revenue to the province of Papua from natural resources (which forms part of the Balance Fund) is as follows: Forestry: 80%

����������Fishery: ���80%

General mining: 80%

Oil: 70% Natural Gas: 70%

For oil and natural gas, the percentages will reduce to 50% from the 26th year.

3 .4 General Legislation

In addition to the specific legislation already discussed, there are a number of areas in which legislation is of particular significance for the Project. While not dealing with indigenous communities directly, this legislation is relevant to Project activities and the way in which these activities could impact local populations. Set out below is:

 a summary of the national development programs for the period 2000 to 2004

 a description of the general autonomy laws and laws relating to village governance

 a summary of the Indonesian Human Rights Law

3 Legal Framework 39  a description of the system which related to movement of residents within Indonesia and general employment issues

 a discussion of the legislation relating to transmigration

3 .4 1 . The ����������������������������������������National Development Programs (PROPENAS)

Law 25 of 2000 is a guideline for the government on the objectives of the National Development Programs for the period 2000 to 2004 (PROPENAS). PROPENAS identifies a number of specific areas that are of relevance to traditional communities and proposes ways in which these areas can be improved. It cites as issues weak law and human rights enforcement; the less developed capacity and social development of the regions; and low levels of social welfare. With respect to the regions, PROPENAS states that regions in eastern Indonesia are requiring special attention.

3 .4 1. 1 . Priorities

In order to address these problems, PROPENAS identifies the following priorities:

 Realizing the supremacy of law and good governance: Religious and traditional laws must be recognized and integrated into national law.

 Speeding up economic recovery and strengthening the bases for sustainable development: The use of national natural resources must take into account sustainability and conservation. The use of natural resources must allow access for local people to use natural resources in order to improve their welfare. Participation of the people in the use and control of natural resources must be improved.

 Promoting regional development: The objectives of regional development are to (i) to strengthen the implementation of the regional autonomy by improving governance, public services and increasing the participation of the people; (ii) develop regional economies in underdeveloped and remote areas; (iii) strengthen local social institutions and organizations, eradicate poverty and promote social protection for the people; (iv) speed up the settlement of problems facing the Special Region of Irian Jaya and strengthen the capacity of the regional administration.

 Speeding up and strengthening the implementation of regional autonomy: Prepare and strengthen laws and regulations for the implementation of regional autonomy and seek regional income sources by taking into account the capability of the people, the potentials and the conservation of natural resources and the environment.

3 .4 1. .2 Economic Development

PROPENAS provides that national policy must include policies on land reform, which must ensure the exploitation and use of land is transparent and prioritizes the traditional rights of local people.

Development of the national economy must include the development of regional economies, and efforts must be made to speed up development in regions that are remote, critical, borderline and under-developed.

40 BP Tangguh Integrated Social Program 3 .4 1. .3 Political Development

PROPENAS provides for an improvement in the political structure and processes, which includes the improvement of laws and regulations that establish the relationship between the central government and the administrations of the provinces, regions and municipalities.

3 .4 1. .4 Regional Development

Specific reference is made in PROPENAS to the development of the special autonomous region of Irian Jaya. Four groups of programs are identified: (i) developing regional autonomy, (ii) speeding up the development of the region, (iii) improving the empowerment of society and (iv) speeding up the settlement of problems in the special region.

PROPENAS states that the special handling of Irian Jaya should include the improvement of education services, access to social and economic services, social welfare, justice and security, recognition and respect for the rights of the adat community and the settlement of human rights violations.

3 .4 1. .5 Development of Natural Resources and Environment

PROPENAS states that adat rights must be protected through their active participation when determining access and control of natural resources. Local communities should be empowered, and their rights protected in relation to the management of natural resources and the conservation of the environment using a religious, traditional and cultural approach.

3 .4 .2 Regional Autonomy Laws

The relationship between central and regional government in Indonesia has undergone significant change. In 1999, after much debate, the government enacted two laws that formed the basis for granting significant authority to the various regions within Indonesia, namely Law 22 of 1999 on Regional Government (Law 22) and Law 25 of 1999 Concerning Fiscal Balance Between the Central Government and Regional Governments (Law 25). Under Law 22, regional governments were granted full autonomy to carry out all government administrative matters, except in areas where such authority was specifically reserved to central government.

The 1999 laws were replaced in October 2004 by two laws, Law 32 and Law 33. Law 32 retains the same concepts as Law 22 with respect to the autonomy of regional government. However, it increases the possible role of regional government, allowing certain sectors that were previously reserved to central government to be delegated (under certain circumstances).

The laws recognize the division of Indonesia into provinces, regencies and municipalities, all of which have regional administrations. The aim of the 2004 laws is that these regional administrations will carry out wide-ranging autonomy, with a view to improving public welfare, public services and the competitiveness of the regions. The autonomous regions are expected to improve their competitiveness by taking into account the principles of democracy, equitable distribution, justice, specific advantages, potential and diversity, while remaining within the Republic of Indonesia. Nevertheless, it is recognized that relationships with central government will continue with respect

 �������������������� Article 7 of ������Law 22  �������������������� Article 10 (4) of Law 32

3 Legal Framework 41 to financing, public services, the use of natural resources and other resources. The intention is that these should be dealt with in a fair and harmonious manner. Law 32 states that government administration in relation to foreign affairs, defence, security, the national judicial system, monetary and fiscal systems, and religious affairs may be exercised by the central government, or may be delegated to either (i) representatives of central government at the regional government level or (ii) to regional government and/or village government.

Law 32 sets out in detail the matters that will become the authority of the various regional administrations, identifying these for province, regency and municipality levels of government. Article 17 relates to the relationship between the government and regional administrations in the use of natural resources and other resources. While it is intended that further legislation should deal with this in more detail, the law recognizes that the central government retains authority with respect to the responsibility, use, maintenance, control of impacts, cultivation and conservation over resources; the sharing of proceeds from the use of natural resources and other resources, and the harmonization of the environment, spatial layout and reforestation.

3 .4 .3 Human Rights

In 1999, the Republic of Indonesia enacted Law 39 on Human Rights (Law 39). As a member of the United Nations, Law 39 recognized that Indonesia had both the moral and legal responsibility to uphold the Universal Declaration of Human Rights and other international instruments on human rights that had already been ratified by the Republic of Indonesia.

3 .4 .3 1 . Scope of Human Rights

Chapter 3 of Law 39 sets out the human rights and freedoms that the law recognizes. Such rights include the right to live, to marry and bear children, to self-development, to justice, to freedom of the individual, to security, to welfare, and to participation in government. The law also recognizes the rights of women and children.

3 .4 .3 .2 Obligation to Uphold Human Rights

The Law makes it clear that everyone within the territory of the Republic of Indonesia is required to comply with Indonesian legislation and law, including unwritten law and international law concerning human rights that has been ratified by Indonesia. It sets out a basic obligation and responsibility to uphold the human rights of others, and stresses that it is the duty of the government to respect, protect, uphold and promote such rights and obligations.

3 .4 .3 .3 National Commission on Human Rights

The Law describes the role of the National Commission on Human Rights. Its aims are twofold:

 to develop conditions conducive to the recognition of human rights in accordance with Pancasila, the Constitution, the United Nations Charter and the Universal Declaration of Human Rights

 to improve the protection and upholding of human rights in the interest of the development of Indonesian people as a whole, and their ability to participate in all aspects of life

42 BP Tangguh Integrated Social Program 3 .4 .3 .4 Rights of the National Commission

The Commission has a number of significant rights. It is generally authorised to monitor the execution of human rights, and to investigate and examine incidents that may constitute a violation of human rights. In investigating, it may interview both complainants and witnesses, and request written statements and documents from related third parties. It may visit locations where violations may have taken place, and (with court approval) examine houses and other buildings. It is also granted (again, with court approval) the right to provide input into cases that are undergoing judicial process, if these involve a violation of human rights relating to a public concern (defined to include land affairs, manpower issues and the environment).

3 .4 .3 .5 Ability to Make a Complaint

Article 90 of the law states that any person or group of people who have strong grounds that their human rights have been violated may submit an oral or written complaint to the National Commission. The Commission may only deal with such complaints if the true identity of the complainant is known and if there is clear evidence of the subject matter of the complaint. Where a third party brings the complaint, the complainant must have the approval of the party whose rights have been violated (save for certain exceptions).

3 .4 .3 6 . Public Participation in Human Rights

Chapter VIII relates to public participation in human rights issues. It confirms that all people, groups, political organizations, community organizations, non-governmental organizations and other specified organizations have the right to participate in protecting, upholding and promoting human rights. Accordingly, such groups have the right to: (i) submit reports of human rights violations to the National Commission; (ii) submit proposals concerning matters and policies related to human rights to the National Commission, and (iii) study, educate and disseminate information about human rights.

3 .4 .4 Migration

Indonesian regulations provide that each resident of Indonesia (including a temporary resident, which includes foreign citizens who reside within the territory of Indonesia) is entitled to receive public services in relation to where that person is registered. The regulations require each resident to report/register with the relevant regional government where he (or she) currently resides. A resident is also required to report and register if the resident moves to a location outside the jurisdiction of the regional government where he currently resides.

3 .4 .4 1 . Registration

The Governor, as the head of the regional government, is responsible for carrying out the registration of residents within his jurisdiction. He is required to submit a periodical report setting out data on residents to the Minister of Home Affairs. The Governor is also required to supervise the process for registration of residents at the regency (kabupaten) level.

The Regent (Bupati), as head of the relevant kabupaten regional government, is responsible for carrying out registration within his jurisdiction. This should be on the basis of a regional government regulation at kabupaten level (as approved by the Governor). The Bupati is required to report the results of registration to the Governor .

3 Legal Framework 43 With respect to reporting requirements, the head of a village is obliged to submit a report containing data on registration of residents within its territory to the subdistrict head (Camat) on a quarterly basis. The Camat is obliged to submit the data to the Regent on a quarterly basis. The Regent is obliged to submit to the Governor on a quarterly basis. The Governor is obliged to submit the data to the Minister of Home Affairs every six months.

3 .4 .4 .2 Registration Documents

The regulations require the following events to be registered or reported: the birth and death of a resident; the departure and arrival of a resident; a change of citizenship status; a change of the residency status or the bio-data of a resident.

Once registered, each resident will be granted a resident registration number (NOPPEN). The NOPPEN is valid for life, and may not be used by any other resident for any purpose. Each head of household is obliged to possess a Family Card (Kartu Keluarga). In the Family Card, information relating to the household and the members of the family should be clearly recorded. Each resident who has reached 17 years of age, or has married, is obliged to own a resident identity card (known as Kartu Tanda Penduduk or KTP). Each resident may only possess one KTP. A KTP is valid for three years and may be extended by way of issuance of a new KTP.

3 .4 .4 .3 Registration Requirements for Departure/Arrival of a Resident

For each proposed movement, a resident is obliged to de-register at the relevant regional government jurisdiction where he or she currently resides, and re-register at the destination. The de-registration process includes an application for documents that the resident must take to the destination location. On arrival, a resident must register and present various documents, including a letter from the head of neighborhood association, a statement letter from the original village administration and his KTP.

The various procedures set out in the regulations are extremely detailed, entailing verifications and processing of documents at both village and district level, including an amendment to the Family Card.

3 .4 .5 Manpower

Law 13 of 2003 (Law 13) sets out the principles and rules to cover manpower affairs. This law revokes and replaces many previous laws (including the Dutch-inherited laws) dealing with manpower generally, and specifically in relation to child labour, union agreements, strikes, female workers and foreign workers. This law also adopts the international principle of basic human rights, particularly with regard to the right to get a job without being discriminated.

Law 13 provides that each manpower (worker) has an equal opportunity to procure a job, without being discriminated against. “Manpower” is defined as anyone who is capable of carrying out work in order to produce goods or services to meet his or her needs as well as the needs of society. The law states that each worker has an equal right and opportunity to acquire a job and have a decent livelihood, without discrimination as to the gender, race, religion and political belief, and with due consideration to the interests and skill of the worker. This applies also to disabled workers.

Once employed, each worker is entitled to equal treatment without discrimination by its employer. An employer must grant rights to each worker, and exercise its own obligations, without discrimination as to gender, race, ethnicity, religion, colour of skin and political belief.

44 BP Tangguh Integrated Social Program The law states that each worker has an equal right and opportunity to choose, procure, or move to a different job, and to obtain a decent income whether he/she is within or outside Indonesia. The law further mandates that job placement must be carried out on the basis of openness, freedom, impartiality, justice and equality without discrimination. In relation to the principle of ‘freedom’, a job seeker cannot be forced to accept a particular job, and a prospective employer must not be forced to accept an employee. However, while an employer is free to choose its employees, it may not do so in a way that is prohibited under the law.

An employer is prohibited from terminating an employee’s job for a number of reasons set out in the law, including because of having a difference of opinion, or of the worker’s religion, political belief, race, colour of skin, gender, physical condition or marital status. The law states that any termination on grounds prohibited in the law is voidable, and the employer will be obligated to re-employ the worker.

3 .4 6 . Village Administration

Following the enactment of the regional autonomy laws, the role of the village has changed significantly from the system set up in the 1970s. A key regulation on village administration is Government Regulation 76 of 2001 (GR 76), which provides that a village is formed on the basis of community participation, with due consideration to the origin of such village, and requirements arising from the specific social and cultural conditions of the community concerned.

A village can be formed in one of two ways. Firstly, a new village can be formed in order to complement an existing village. Secondly, a new village can be created as a result of an expansion or re-structuring of an existing village. GR 76 also stipulates that a village can also be abolished or merged with another village because the society and regional conditions no longer meet requirements. If traditional customs and the origin of a village itself require, the area of a village can be divided into smaller units called hamlets (dusun). The term dusun may be used differently in certain areas depending on the social and cultural conditions of the community concerned.

3 .4 6. 1. Structure of Village Administration

A Village Administrator (Pemerintah Desa) and Village Representative Board (Badan Perwakilan Desa, known as Badan Perwakilan Kampung (BAPERKAM) in Papua) should be formed in each village. These two organizations are responsible for running the administration of a village and are together referred to as the Village Administration (Pemerintahan Desa).

The Village Administrator consists of the Head of the Village (Kepala Desa) and the Village Apparatus (Perangkat Desa) that comprises, at a minimum, three different sections with each carrying out a different administrative function.

The organizational structure of Village Administration (i.e. Village Administrator and Village Representative Board) must be set up through a decree of Head of Village and with an approval of the Village Representative Board. The Head of Village is responsible for notifying the Bupati and Camat with regard to the organizational structure of his village.

3 .4 6. .2 Head of Village

The village community should elect the Head of Village and should be a person who meets the criteria set out in GR 76. The selection is carried out in two phases: the nomination phase and the

3 Legal Framework 45 election phase. The Village Representative Board is responsible for establishing a committee for the purpose of nomination as well as the election of a Head of Village.

Once elected, the new Head of Village is required to take an oath before he carries out his duties and responsibilities, which include providing leadership to ensure village administration, providing guidance to the community, developing the economy of the village, maintaining order and resolving disputes, and being the legal representative of the village.

The term of office of Head of Village is a maximum of 10 years. The Head of Village may directly appoint members of what is known as the Village Apparatus, although this depends on the social and cultural aspects of the community. The Village Apparatus is responsible directly to the Head of Village, and is required to assist him in carrying out his duties. The appointment of the Village Apparatus should be carried out under a Head of Village Decree upon approval of the Village Representative Board.

3 .4 6. .3 Village Representative Board

The Village Representative Board functions as a guardian of the adat or traditional customs of the community living the village. It is responsible for drawing up village regulations (which should be designed to channel the community’s aspiration and ����������������������������������������������socialized with the community) and supervising the Village Administration. Specifically, the supervisory role of the Village Representative Board includes monitoring the implementation by the Village Administrator of: (a) village regulations, (b) village budget and (c) decrees issued by the Head of Village. Members of the Board are elected from the community living in the village. The total number of members must be an uneven number and at least five.

3 .4 6. .4 Village Community Institution

In addition to the Village Administrator and the Village Representative Board, a village may form a Village Community Institution (commonly called Lembaga Kemasyarakatan Desa). The duty of this institution is to empower the community living in the village, and to carry out village development.

3 .4 6. .5 Village Income and Budget

A village’s source of income consists of the village’s own income, financial assistance from the kabupaten, provincial or central government, donations from third parties, and borrowings. The Head of Village should draw up a village budget in cooperation with the Village Representative Board. The Budget should be made annually and should be stipulated in a village regulation.

3 .4 7 . Transmigration

3 .4 7. 1. Programs carried out from 1958 until 1972

Indonesia established a transmigration program in 1958 (by virtue of Government Regulation 56 of 1958). During this period, the purpose of the program was mainly to open up remote areas, to reduce the density of heavily populated areas, for reasons of unity and integrity of the State, and for security and defence.

The program was drawn up and carried out by the central government in cooperation with the relevant regional government. The government decided on the location of the transmigration area.

46 BP Tangguh Integrated Social Program Priority to be moved was given (in the following order) to farmer, farm workers, those with an agricultural background, and those with a military background. Benefits included land title for the transmigration area, rights to harvest forest products at the transmigration area, and other benefits (as determined by the central government). The central government was required to create a development plan for each transmigration area (in the context of National Development Planning). The Coordinating Body of Transmigration was formed to supervise the carrying out the program, both at the central and regional levels.

3 .4 7. .2 The 1972 Program

In 1972, the Government passed Law 3, which replaced the prior legislation. Transmigration was defined as the “movement and/or relocation of population (penduduk) from one area to another within the territory of Indonesia for the interest of National Development or for reasons in which the Government deems necessary in order to implement this law”. A transmigration participant is defined as “any Indonesian citizen who moves out or is relocated, voluntarily, to another region pursuant to this law.” Although the law contains reference to the term “voluntary”, it grants authority to the government (by issuing a presidential decree) to designate a particular area (called Origin Area or Daerah Asal), such that people living in that area must be relocated involuntarily to another area called the Transmigration Area (Daerah Transmigrasi).

The stated objectives of the post-1972 transmigration program were to enhance the livelihood of the transmigration participants, to support regional development, to disperse the population evenly, to spread growth evenly throughout the country, to make use of natural resources and manpower, to enhance the integrity and unity of the nation, and to strengthen the nation’s defence and security system.

The law provides for a government-initiated general Transmigration Program (Transmigrasi Umum) and Self-Initiated Transmigration Program (Transmigrasi Swakarsa). Both types of programs are established for a five-year period. During this time, the Transmigration Area must be opened, developed and used. If the area is not properly opened, developed and used within the five- year period, the status of the land will revert to state land (tanah negara) and the program will be discontinued. If, however, the program is successful, the Transmigration Area will be handed over to the relevant regional government.

Each transmigration participant is entitled to receive a plot of land for a garden and/or agricultural purposes with a Hak Milik title (Right to Own) as discussed below. In addition, each participant is entitled to receive benefits, guidance and counselling.

Where land title already exists on the land that has been designated as a Transmigration Area, the title must be relinquished, with compensation to the landowner, by the Minister of Agrarian Affairs. If the land is located within the forestry zone (kawasan hutan), the Minister of Forestry must release it from the zoning. For an interim period (until the program is successful and Hak Milik title is granted) the land will be held under Hak Pengelolaan title (Right to Manage) issued to the Minister of Transmigration. The Hak Pengelolaan title will automatically terminate once the individual Hak Milik land titles are issued to each transmigration participant. The Hak Milik certificate will contain a prohibition not to transfer the title to another party in ten years. Each transmigration participant who has a background as a farmer will be given two hectares of land (¼ hectare allocated for house and garden and 1¾ hectare for rice field and/or cultivated land). A non-farmer transmigration participant will be given a minimum of ¼ hectare allocated for house and garden.

3 Legal Framework 47 Each household is entitled to receive one house, and to use public facilities such as a school, market, clinic, and religious facilities, village hall (balai desa) and other facilities built and provided by the Government. The household is also entitled to receive health and education benefits as well as a food basket for an interim period.

3 .4 7. .3 The 1997 Program

The transmigration program experienced a moderate change in concept as a consequence of Law 15 of 1997, further implemented by Government Regulation 2 of 1999. Under this law, transmigration is defined as “the voluntary relocation of a population (penduduk) to improve their well being and to reside in a Transmigration Development Area (Wilayah Pengembangan Transmigrasi)10 or a Transmigration Residential Location (Lokasi Pemukiman Transmigrasi)11 under management and with services provided by the Government”. The term “voluntary” is further elaborated to mean that the carrying out of transmigration must be on the basis of, and in the spirit of, a voluntary act of anyone who wishes to participate in the program.

The law sets out three different transmigration program, namely: (a) the General Transmigration (Transmigrasi Umum) program carried out by the Government in cooperation with the private entity, (b) the Subsidized Self-initiated Transmigration (Transmigrasi Swakarsa Berbantuan) program carried out by individuals or a group of individuals in cooperation with a private entity with guidance, services and assistance provided by the government, and (c) the Self-initiated and Self-supported Transmigration (Transmigrasi Swakarsa Mandiri) program carried out by transmigration participants and a private entity through a cooperation contract.

Participants in these transmigration programs are entitled to receive benefits and assistance from the government. While the benefits and assistance vary from one program to another, in general they include: (a) comprehensive information on employment and enterprise opportunities, as well as the location of the transmigration area, (b) land plot with Hak Milik title for residency and venturing purposes, including a house, (c) public and social facilities, and (d) training and guidance.

The way in which the land procurement is carried out for the transmigration area is similar to that of under Law 3 of 1972. However, under Law 15 of 1997, the choice of location must be made in accordance with the Spatial Planning drawn up by the relevant Regional Government. The land title granted to each participant must not be transferred to another party in 20 years, unless the participant concerned dies or is assigned to a post outside the transmigration area (for civil servants).

The law also sets out the obligations of all transmigration participants as follows: (a) to physically reside in the transmigration area, (b) to preserve the environment, (c) to maintain and develop the enterprise activities, (d) to maintain and upkeep the land and assets used to support the enterprise activities, (e) to maintain a harmonious relationship with the local community and respect the adat customs of such local community, and (f) to comply with the rules on transmigration.

10 �� A� “�Transmigration������������������������������� Development Area” is������������������������������������������� defined as a potential area determined (ditetapkan) as a transmigration residential development to form a new local growth centre in accordance with the Spatial Planning (RTRW). 11 A “Transmigration Residential Location” is defined as a potential area determined as a transmigration residential area to support existing or a developing local growth centers in accordance with the Spatial Planning.

48 BP Tangguh Integrated Social Program 3 .4 .8 Adat Culture

Article 10 of Law 19 of 2002 provides that the State holds the copyright of prehistoric and historic masterpieces and national cultural assets. In addition this article also states that the State holds the copyright of folklore and property of the peoples’ culture, such as legends, songs, handicrafts, choreography, calligraphy and other art products.

In the Elucidation, “folklore” is defined as the traditional creations made by a group or individual members of the community that express their social and cultural identities and are created as a consequence of standards and values that are inherited verbally or followed strictly by one generation to another.

The law further states that in order to duplicate these copyrights, a person who is not an Indonesian citizen must obtain a prior approval from the relevant authority. The Elucidation further explains that this requirement is aimed to prevent monopolization, commercialization or destruction of the folklore and property of the peoples’ culture without consent by the State.

3 .4 .9 Cultural Property

Law 5 of 1992 regarding items of cultural property (Law 5) sets out a formal system whereby items that are defined as being culturally important can be registered, supervised and preserved for future generations. While Law 5 does not specifically recognizeadat cultural objects, objects to which the law relates and can be registered are defined as:

 made by man, movable or immovable, either single objects or in a group, and at least 50 years old

 natural objects regarded as having a significant value for history, science or culture

3 .4 .9 1. Ownership

While Law 5 states that all such objects are controlled by the State, it also recognizes that an individual may own or control certain registered objects. In doing so, a person must observe their social function, and adequately acknowledge the interest of the public in relation to such object. The Law recognizes that certain objects may be personally owned and controlled, such as objects that are passed within a family from generation to generation or as inheritance.

3 .4 .9 .2 Registration, Protection and Maintenance

Every person who owns an object has the ability to register it. A letter will be provided as evidence of registration. Everyone who owns or controls such objects is obliged to protect and maintain the objects. Law 5 provides that registered cultural objects may be utilized for religious, social, tourism, educational, scientific and/or cultural purposes providing the Minister for Cultural Affairs has granted a licence.

3 Legal Framework 49 3 .4 .9 .3 Support and Supervision

The Minister for Cultural Affairs is responsible for supporting the management of cultural objects. This will cover:

(a) support provided to the owner or the party in control of the object in connection with the procedure for protection, maintenance and utilization, and

(b) support with respect to the participation of the community in connection with conservation efforts

Support may be given through guidance and counselling, assistance from expert personnel, and by increased participation of the community. The participation of the community in managing and preserving objects can be undertaken by individuals, statutory bodies, foundations, associations, organizations or similar bodies.

3 .4 10 . Population and Development of Family Welfare

Indonesia also adopts a law on population and development of family welfare, i.e. Law 10 of 1992. The law is aimed at managing the development of social welfare to achieve a good quality life of the Indonesian people.

The law states that each member of the population has equal rights and obligations in terms of enhancing and developing family welfare. These rights comprise of the right as individual, as a member of society and as a citizen, as well as the right to be accounted for under national development. The rights as individual include the right to form a family, the right to enhance the quality of itself and its life and the right to live in or move into a decent environment. The rights as a member of society include the right to develop cultural assets, the right to develop a common ability as a group, the right to make use of hereditary adat territory (wilayah warisan adat) and the right to preserve or to expand the customary life of adat. As a citizen, it has equal rights and protection as other citizens, as well as the right to procure and protect its living space. Lastly, in relation to national development, it has the right to be accounted for in the policies associated with development of population and family welfare under national development.

Each member of population as a member of a family has the right to develop its family by way of having an ideal number of children, or to adopt children, or to provide education to its children and other rights that can assist in achieving family welfare.

50 BP Tangguh Integrated Social Program 4 The Project Setting

4 1. The Political Context

In 1999, the Indonesian central government enacted legislation for decentralization thereby ushering in ‘regional autonomy’ for all of Indonesia’s provinces and promising an even greater degree of autonomy (known as ‘special autonomy’) for two resource-rich provinces, namely Aceh and Papua. In 2001, the national parliament began drafting a Special Autonomy Law for Papua that built upon the previous regional autonomy legislation. Provisions in the Special Autonomy Law fall into four categories, all of which are relevant to the Tangguh Project. These are:

1) creation and strengthening of public administration capacities

2) promotion of Papuan social and cultural concerns through the creation of the Majelis Rakyat Papua (MRP; Papuan Peoples Assembly) and recognition of the importance of traditional customs (adat)

3) legal arrangements for revenue-sharing between central and provincial governments with an increased share of revenues deriving from the exploitation of natural resources being directed toward the province, and

4) division of security responsibilities by the central and provincial governments.

Under Special Autonomy, the restructured provincial government includes the Papuan Peoples Assembly, a body of representatives of traditional customary (adat) leaders, religious groups and women. The goal is recognition, acknowledgement and strengthening of traditional customs (adat) and rights (hak ulayat). Revenue sharing between the central and provincial governments will increase dramatically.

The implementation of Presidential Impress 2002-1 in 2004 led to the temporary division of Papua into three provinces, namely West Irian Jaya, Central Irian Jaya and Papua. While subsequent inter- clan unrest led Central Irian Jaya to refrain from pursuing status as a separate province, West Irian

 The Tangguh Project is located within the prospective provice of West Irian Jaya.

4 The Project Setting 51 Jaya proceeded with instituting a nascent government and electing representatives to the national legislature. In October 2004 the Constitutional Court ruled that Presidential Impress 2002-1, dividing Papua into three provinces, was unconstitutional because it violated the specific decision-making mechanism included in the Special Autonomy Law for determining whether Papua may be divided into multiple provinces. Nonetheless, the Court ruled that its mandate was prospective only and that the province of West Irian Jaya would remain in existence.

In December 2004 the President publicized the issuance of a Presidential Directive governing the formation of the Majelis Rakyat Papua. Elections for the MRP, representing a key provision of Special Autonomy, were held in late 2005. The MRP will provide inputs on candidates for governor and deputy governor proposed by the legislature and on by-laws proposed by the legislature or the governor, and on any proposed agreements between the governor and third parties. It seems probable that a parallel MRP will be created for West Irian Jaya and that Special Autonomy provisions will apply fully but separately to the new province.

4 .2 The Bird’s Head Peninsula of Papua

The Bird’s Head Peninsula is located at the far west of Papua (Figure 4.1). While the Bird’s Head region comprises several ecosystems, it is dominated by a series of inaccessible, rugged and forested mountain ranges (including the Arfak Mountains) in the interior, and lowland and coastal swamps in the south of the peninsula.

Figure 4.1 The Bird’s Head Peninsula of Papua

52 BP Tangguh Integrated Social Program Until recently the area was administered as three regencies, namely Manokwari, Sorong and Fakfak. The main towns (having the same names as the regency) are well established, comprise substantial urban populations, and serve as the seats of government as well as centres for operation and/or supply of enterprise and industry. Sorong is the largest of these cities. It provides the most direct links to the remainder of Indonesia to the west, and serves as a centre for enterprise and industry, particularly the oil and logging industries that operate in the Bird’s Head. Manokwari is a large city, perhaps best known as the point of entry of Christianity to Papua in and more recently, the home of the only university in the Bird’s Head, namely University of Papua (UNIPA, which split from the Jayapura-based Cenderawasih University in 2002). Fakfak remains a small town.

As indicated above, until recently the Bird’s Head of Papua was administered as three regencies, namely Manokwari, Sorong and Fakfak. However the implementation of Law 26/2002 led to further division of the Bird’s Head and establishment of new regencies, giving the Bird’s Head eight regencies (Manokwari, Sorong, Sorong Selatan, Raja Ampat, Fakfak, Kaimana, Teluk Bintuni, and Teluk Wondama), and one city (City of Sorong). Table 4.1 presents details of the total area and the number of districts of each of the new regencies. The process of division, the establishment of representative government (through elections and staff recruitment), the development of government infrastructure in the main regency towns, etc., is ongoing.

Table 4 1. Area of Regencies and Number of Districts, Bird’s Head of Papua (2003)

No Regency Area (ha) % No Districts

1 Manokwari 1,419,069 13.5 11

2 Teluk Wondama 531,405 5.1 7

3 Teluk Bintuni 1,866,344 17.8 8

4 Sorong 1,623,533 15.5 12

5 Sorong Selatan 1,326,543 12.6 10

6 Kota Sorong 38,000 0.4 4

7 Raja Ampat 881,953 8.4 7

8 Fakfak 900,975 8.6 9

9 Kaimana 1,904,070 18.1 7

10,491,892 24 .9 75

Percentages are per cents of total number within the Bird’s Head; final per cent is that of the Bird’s Head in relation to total land area of province.

Table 4.2 presents the demographic statistics of the Bird’s Head. The population of the Bird’s Head is 645,913, representing 26% of the total population of the province. Together the urban centres absorb the majority of this population with Sorong (comprising Kota Sorong and Sorong), Manokwari and Fakfak having a population of 220,000, 68,000 and 20,000 respectively, or together approximately 50% of the Bird’s Head population. The remainder of the population resides in coastal and rural areas (Table 4.3) which are characterized by low population densities. There is a marked

 An ethnographic profile of the indigenous tribes and transmigration populations that reside in the Bird’s Head of Papua is not available and data on the number of tribes, the tribal population, etc., cannot be presented in this chapter.

4 The Project Setting 53 divide between urban and rural communities. Urban centres have better provision of services (i.e., health and education) and utilities (i.e., electricity, water, communications), represent centres for the supply of goods and services, and invariably represent potential sources of employment. Overall, urban areas may best be described as centres of modernity and once outside these centres, the traditional aspects of rural life in Papua are very rapidly evident.

Table 4 .2 Demographic Statistics by Regency, Bird’s Head of Papua (2003)

Population Density No Regency Population % (person/km2) 1 Manokwari 153,602 23.8 10.8

2 Teluk Wondama 29,317 4.5 5.5

3 Teluk Bintuni 38,398 5.9 2.1

4 Sorong 70,081 10.8 4.3

5 Sorong Selatan 52,299 8.1 3.9

6 Kota Sorong 184,239 28.5 484.8

7 Raja Ampat 29,248 4.5 3.3

8 Fakfak 56,958 8.8 6.3

9 Kaimana 31,771 4.9 1.7

645,913 26 .2 6 2.

Percentages are per cents of total number within the Bird’s Head; final per cent is that of the Bird’s Head in relation to total population of province.

Table 4 .3 Number of Villages and Households by Regency, Bird’s Head of Papua (2003)

No No Urban No No Regency Total % Villages Villages Households 1 Manokwari 407 9 416 38,696 24.3

2 Teluk Wondama 49 0 49 7,386 4.6

3 Teluk Bintuni 87 2 89 9,673 6.1

4 Sorong 122 1 123 17,250 10.8

5 Sorong Selatan 195 3 198 12,873 8.1

6 Kota Sorong 0 20 20 44,974 28.2

7 Raja Ampat 88 0 88 7,199 4.5

8 Fakfak 120 5 125 13,763 8.6

9 Kaimana 81 1 82 7,677 4.8

1,149 41 1,190 159,491 26 .1

Percentages are per cents of total number within the Bird’s Head; final per cent is that of the Bird’s Head in relation to total number of households within province.

The Bird’s Head is defined by limited access and transport and poorly developed services (i.e., communications, electricity). The major towns of Sorong and Manokwari are serviced by several Indonesian airlines, providing links to the other major towns in Papua (e.g., Timika, Jayapura) and the remainder of Indonesia. The smaller towns are serviced on a regular but less frequent schedule by smaller aircraft. The existing road system centres on the major towns, hence networks exist around Fakfak, Sorong and Manokwari but no links exist between these centres. As a consequence

54 BP Tangguh Integrated Social Program there is a heavy reliance on marine transport. The national shipping lines provide regular access to the major coastal towns around Papua, while local service providers meet local needs to a greater or lesser extent. The overall effect—and this is historically the case for the whole of Papua—is that coastal areas are significantly more accessible (and thus more developed) than interior areas.

Like much of Papua, the Bird’s Head is spectacularly well endowed with natural resources. Extractive industries form the backbone of the Bird’s Head economy. The mining, oil and gas sector has the longest history in the Bird’s Head dating back to the late 1930s. However today oil and gas, mining, logging, fisheries, and to a lesser extent plantation agriculture (oil palm, cocoa, copra) are all important. The majority of industries are owned and operated by non-Papuan interests with significant transfer of economic benefits outside the province.

4 .3 Kabupaten Teluk Bintuni

4 .3 1. Political Administration

As indicated above, Law 26/2002 established the basis for division of the three kabupaten of Manokwari, Sorong and Fakfak. On this basis Kabupaten Teluk Bintuni was established as a new regency by the separation of the four districts of Merdey, Arandai, Bintuni and Babo from Manokwari. The new regency’s capital (i.e., the seat of government) is the town of Bintuni (known as Steenkool during the Dutch period). Following its establishment, the division of the regency has been revised such that the four original districts have been divided, thereby giving the new regency a total of 10 districts with 96 villages (Figure 4.2) although the process of division is ongoing.

As in most regencies throughout the Bird’s Head, in Kabupaten Teluk Bintuni the process of division, the establishment of representative government (through elections and through staff recruitment), and the development of government infrastructure in Bintuni and newly formed districts is ongoing. At the time of establishment, it was estimated that administration of the regency would require 600-800 staff.

In January 2004, an assessment of the regency government demonstrated that:

 the regency is being administered by a caretaker Bupati, with elections scheduled for July 2005

 the government has established a planning agency (BAPPEDA) and nine departments, namely health and social affairs; education, culture and tourism; agriculture, livestock and estate cropping; forestry and environment; marine and fisheries; mining and energy; economy and income; civil works and public relations; community development, women and labour. An assessment in January 2004 indicated that neither the kabupaten nor departmental strategic plans had been written.

 the regency government had a staff complement of 70 full time equivalents; the majority of staff (90%) are recruited from Kabupaten Manokwari.

4 The Project Setting 55 Figure 4.2 Administrative Map of Kabupaten Teluk Bintuni

4 .3 .2 Environment

The climate of the region is monsoonal. The northwest monsoon passes through the region from November through March bringing high intensity and high levels of rainfall to the area, with peak rainfall occurring in January. The northwest monsoon is often associated with storms (i.e., high winds) that make marine transport hazardous, if not impossible. A dry season (coinciding with the passage of the southeast monsoon) occurs between May and October, and is generally associated with cooler winds that make the nights comparatively chilly. Daytime temperatures are uniformly high, although heavy rains are often associated with a temporary reduction in temperatures. Relative humidity is also high, reaching its peak during the rainy season associated with the northwest monsoon.

Kabupaten Teluk Bintuni encompasses a range of ecosystems including shoreline mudflats, mangroves, extensive nipa and sago palm stands, swamp forests, Melaleuca savannahs and lowland Dipterocarp forest. Each ecosystem is associated with specific biophysical characteristics (i.e., soils, hydrology, topography, vegetation, etc.). Merdey district is largely covered by lowland Dipterocarp forests; Arandai district is primarily covered by extensive nipa and sago stands and swamp forests; Bintuni and Babo districts comprise both mangrove forests and lowland Dipterocarp forests. Figure 4.3 presents a land cover map for Bintuni Bay while Figure 4.4 presents a profile of the mangrove forests found in the Bay.

The topography of the area reflects the dominant ecosystems. The topography of the mangrove, nipa and sago palm, and mangrove ecosystems is characterized as flat, with elevations of up to 10 m a.s.l. Being tidal ecosystems the majority of these areas are regularly inundated and as such they represent adverse living environments for humans with limited availability of fresh water, limited agricultural potential, etc.. Other ecosystems are located on gently undulating terrain with

56 BP Tangguh Integrated Social Program elevations of up to 100 m above sea level. The Melaleuca savannahs are underlain by heavy infertile clays which are waterlogged during the wet season. The areas supporting the lowland Dipterocarp forests have shallow podzolic soils with limited agricultural potential.

Figure 4.3 Land Cover of Kabupaten Teluk Bintuni

This and all further maps in Chapter 4 are derived from: Government of Papua, Manokwari District Government with University of Papua (UNIPA), Coastal Resources Management Project (USAID). 2003. Atlas Sumberdaya Pesisir Kawasan Teluk Bintuni. Published by USAID Indonesia Coastal Resources Management Project.

Figure 4.4 Profile of Mangrove Forests in Teluk Bintuni

4 The Project Setting 57 4 .3 .3 Social and Economic Profile

4 .3 .3 1. Access and Transportation

Together, Teluk Berau and Teluk Bintuni comprise a 200-km long, 25-km wide enclosed bay separating the northern and southern halves of the Bird’s Head Peninsula. Access to and transport within the enclosed bay is constrained, this being exacerbated by the limited development of transport infrastructure. Figure 4.5 is an illustrated summary of means of access into the Bay.

The ports in the regional growth centres of Sorong and Fakfak (and to a lesser extent the airports in these centres as well as in Manokwari) represent the primary entry points into the Bay. From Sorong and Fakfak entry to the Bay typically involves use of marine transport providing direct links to Bintuni and Babo. Air services also connect the regional growth centres with Bintuni, Babo and Merdey.

With regard to land transport, the environmental conditions of coastal areas in the Bay (especially on the north shore) have limited the development of roads. Nonetheless, all of the regional centres have roads leading some distance towards the Bay area. From Fakfak, a well established road connects to Kokas, and there are plans to extend it into the Bomberai plains to the east. From Sorong, a road leads to Sorong Selatan. Finally, from Manokwari a reasonably well established 315-km road connects to Bintuni (via Ransiki and Mameh) although this requires a 12-hour, arduous trip.

Within the regency, marine and river transport are the primary means of getting around. To date no Bay-wide transport service that would allow regular commutes between the towns (Bintuni, Babo, Arandai) and villages has been established. Most individuals, households and villages rely on their own longboats to commute to towns. Travel times vary depending on location, size of outboard motors, weather and marine conditions, etc. Besides travel by boat, limited road development has occurred. On the south-shore logging roads have connected Kokas to Bomberai, Saengga and Tofoi. Local government aims to improve these roads to facilitate access and transport. On the north shore, a 135-km road connects Bintuni to Tembuni and Barma.

4 .3 .3 .2 Infrastructure, Services and Utilities

The regency is characterized by limited development in infrastructure, services and utilities. Tables 4.4 and 4.5 describe profiles for the major towns of Bintuni and Babo. Public infrastructure includes government offices, an airstrip, public jetties, and town roads. Private infrastructure includes shops, hotels, etc. Services are limited but nonetheless include government representation, a general post office, telecommunications, limited development of health services, and limited banking services. Electricity is only supplied at night while water supplies are drawn from wells.

Villages located on the Bay or upriver are only accessible by marine transport. Upland villages can only be reached by a combination of marine and overland transport. At the village level, the general situation is more dire than in the towns—typical public infrastructure includes a village meeting hall, primary school, a village health clinic and places of worship (i.e., mosque, churches). Water is drawn from wells, springs or rivers. Electricity is derived from privately owned generators providing lines to nearby households. Such electricity is usually only provided for a limited period in the evenings. No telecommunications services are available. Accordingly, communication is only possible by physical transport.

58 BP Tangguh Integrated Social Program Figure 4.5 Access and Transport to Kabupaten Teluk Bintuni

Table 4 .4 Profile of Bintuni

No Characteristic Description

1 location north shore 2 hamlets Gaya Baru, Aso, Sibensa Weseri 3 access land, air and sea 4 government newly established kabupaten; elections, civil service and infrastructure still to be developed; kabupaten further divided into 9+1 districts; seat of Bintuni kecamatan govt 5 demography Total Population 4,289 no men/women 2,163/2,206 no. households 931 religion Catholic/Protestant/Muslim 6 main ethnic groups Wamesa (34%); Sebyar (24%); Soubh (14%); Irarutu (12%) 7 economy major commercial enterprises centred on logging and oil industries; substantial transmigrant population creating local economy; businesses include general stores (food, hardware, construction); restaurants; kiosks (warung); mechanics; furniture 8 infrastructure government government infrastructure (offices) transport airstrip, jetty, roads (including one connecting to Manokwari) communications public telephone office (Telkom); post office electricity PLN providing electricity in evenings alternately to east and west water no reticulated systems; households draw water from shallow wells education SD (2x); SMP (2x); SMA (2x) health puskesmas; posyandu places of worship mosque (2x), Catholic church, Protestant church (2x) trade fresh markets (2x), businesses include general stores (food, hardware, construction); hostels and hotels (losmen); restaurants; kiosks, warung; mechanics; furniture banks 2 banks - Bank Rakyat Indonesia (BRI), Bank Papua

4 The Project Setting 59 Table 4 .5 Profile of Babo

No Characteristic Description 1 location kecamatan town located on an island in the southeast of the Bay; Babo district recently subdivided into 5 districts 2 hamlets Kasira I, Modan, Nusei 3 access air and sea 4 government kecamatan government is based in Babo 5 demography total population 1,379 no households 265 religion Muslims (80%), Protestants (10%), Catholics (10%) 6 main ethnic groups Irarutu (59% - Manuama, Nauri, Fimbay, Fiawe, Puara, Refideso, Werbete, Dawarno) ; Wamesa (21%); large migrant population (Papuan, Maluku, Sulwasi, Java and Chinese)

7 economy employment as government servants, employees of private enterprises, labourers, fishing 8 infrastructure government government infrastructure (offices) transport airstrip, jetty, roads communications Limited; commercial wartel using privately owned satellite dishes electricity PLN providing electricity in evenings water water drawn from shallow wells education SD (2x); SMP health puskesmas including general hospital; posyandu places of worship Mosque, Catholic Church, Protestant Church (2x) trade fresh markets (1x); businesses include general stores (food, hardware, construction); losmen (4x); restaurants; kiosks, warung; mechanics; furniture; primary production (crabs, prawns, vegetables) banks Bank Rakyat Indonesia (BRI); Bank Papua

4 .3 .3 .3 Demography

Table 4.6 presents population data for the regency. The total population is 38,840 comprising 10,119 households. Table 4.7 presents village level information by district for the regency. The majority of the population resides in rural villages. The population growth rate is 2.5% and population density is 2.1 persons/km2.

The population comprises indigenous Melanesians (58%) and a transmigrant population (42%) from elsewhere in Indonesia. The indigenous communities comprise seven tribes, namely the Moskona, Sough, Sebyar-Kamberan, Wamesa, Kuri, Irarutu, and Sumuri. (These����������������������������������� tribes and their constituent communities are described in Section 4.3.5.) Only�������������������������������������������������������� the Sumuri tribe resides in its entirety within the kabupaten. Typically villages inhabited by the indigenous population comprise households that all belong to one tribe (albeit to different clans within the tribe). Village size ranges from 30 to over 100 households with a total village population of between 150-700.

Table 4 6. Population Data, Kabupaten Teluk Bintuni

District Population Households Bintuni 14,037 3,976 Babo 12,582 3,524 Arandai 4,846 1,289 Merdey 7,375 1,672 TOTAL 38,840 10,119 Source: Manokwari Dalam Angka 2001

60 BP Tangguh Integrated Social Program Table 4 7. Districts and Villages of Kabupaten Teluk Bintuni

No No District Village Names Villages 1 Moskona 7 Moyeba, Mesna, Igomu, Merestim, Inofina, Mosum, Sumui Utara 2 Moskona 13 Jagiro, Meyado, Barma, Moyenda, Rawara, Barma Barat, Barma Baru, Vasco Selatan Dameen, Meyerga, Inggof, Macok, Isilkem, Majnic 3 Merdey 14 Merdey, Meryep, Masyeta, Meyom, Iboro, Jahabra, Mesomda, Anojoro, Meyerga, Mokmen, Morombuy, Kali Biru, Mestufu, Mekiesep 4 Arandai 12 Kalitami I, Kalitami II, Weriagar, Mogotira, Sebyar-Rejosari, Arandai, Manunggal Karya, Tomu, Ekam, Kecap, Baru, Taroi 5 Tembuni 9 Tembuni, Tuhiba, Horna, Mogoi, Arisum, Tisaida, Masina, Gicir, Mulya 6 Bintuni 15 Bintuni Timur, Kelurahan Bintuni Barat, Manimeri, Tuasai, Argosigimerai, Korano Jaya, Banjar Ausoy, Pasamai, Beimes, Iguiji, Weratama, Buni Sainiri, Sibena, Sibena Raya, Sibena II 7 Idoor 4 Wamesa I, Wamesa II, Yansei, Mamoranu 8 Kuri 5 Sarbey, Naramasa, Obo, Refideso, Wagura 9 Babo 14 Irarutu I, Irarutu III, Sumuri, Tofoi, Aroba, Tanah Merah, Yaru, Sidomakmur, Babo I, Babo II, Wargenusa I, Wargenusa II, Sara, Tugurama 10 Fafurwar 3 Irarutu II, Maryedi, Riendo TOTAL 96

Table 4.8 (page 62) describes the transmigration villages that have been established in the regency. While the majority of these settlements were established in areas with recognized agricultural potential, a number of the settlements were specifically established to support the labour requirements of developing enterprise and/or industry. For example, in Babo district, Sidomakmur was established to support the Djayanti-owned and operated fisheries operations while the transmigration settlements of Babo SPI and SPII were established in support of Djayanti-based oil palm plantation development.

The families resident in the transmigration villages voluntarily participated in the national government’s transmigration program. Under this program families volunteering to be resettled were transported from their point of origin (typically Java and Sulawesi) to new settlements in the regency. The national program funded substantial investments in the infrastructure and services and utilities of newly-established villages with development and operation of government buildings, health posts, and primary and secondary schools. In addition, where appropriate substantial agricultural land development has occurred (e.g., near Bintuni large areas have been leveled and irrigated to allow for wet rice cultivation). Hence in comparison to local villages in which indigenous communities reside, the transmigration villages have better standards of construction, utilities and services. These villages remained under the umbrella of the national program until such time they were deemed ready to be handed over to and hence integrated with local government administration.

The transmigration communities comprise mixed communities, with households deriving from Java and Sulawesi as well as within the regency. Transmigrant villages are reasonably self-contained, independent communities with moderate social and cultural interaction with the broader regency environment. The majority of the transmigrants are agriculturalists familiar with wet rice and intensive vegetable production practices. Hence where links occur with the broader environment they tend to be based on economic activities including the production and sale of vegetables, fruit, bean curd, etc.

4 The Project Setting 61 Table 4 .8 Transmigration Villages in Kabupaten Teluk Bintuni

YR Area No Village Name Location Status No No Activity Est Families People (ha) 1 Steenkool SP I Mogoi 96/97 trans 360 1,190 720 2 Steenkool SP II Mogoi 96/98 trans 258 1,298 516 3 Steenkool SP III Mogoi 96/98 trans 440 1,421 880 W of Btni, on 4 Warai Itama (SPI) 95/97 local govt 390 1,457 780 agriculture road to Mkwi i W of Btni, on 5 Korano Jaya (SPII) 94/96 local govt 300 1,107 600 agriculture

ntun road to Mkwi i

B Bumi Saniari W of Btni, on 6 95/97 local govt 360 1,340 720 agriculture (SPIII) road to Mkwi Banjar Awosoi W of Btni, on 7 94/95 local govt 300 1,103 600 agriculture (SPIV) road to Mkwi Argo Sigemarai W of Btni, on 8 93/95 local govt 450 1,671 900 agriculture (SPV) road to Mkwi Kelapa Dua/ 1 Babo SPI 97/98 trans 408 1,638 860 oil palm Tofoi Kelapa Dua/ 2 Babo SPII 98/00 trans 250 2,053 oil palm Tofoi Babo Sth shores, 20 3 Sidomakmur minutes from 91/92 local govt 50 187 n/a fisheries Babo

i 1 Sebyar Rejosari Arandai 89/90 local govt 403 668 n/a sago

2 Manunggal Karya Arandai 91/92 local govt 262 970 Aranda

ttl 13 4,231 16,103

4 .3 .3 .4 Religious Affiliation

The communities of Kabupaten Teluk Bintuni are either Christian (Protestant or Catholic) or Muslim. In many of the villages the three religions co-exist. Traditional belief systems as expressed in the indigenous peoples’ adat continue to exist in parallel with the formal religions.

4 .3 .3 .5 Health

The Tangguh Project has sponsored various studies to obtain baseline health data for the regency. These include: (a) a Baseline Health Assessment conducted by International SOS in April 2000 and (b) two malaria surveys implemented in 2003 by an international malaria consultant.

The objectives of the Baseline Health Assessment were to identify and assess the current environmental and infectious health hazards and health risks facing the local communities and developmental workforce. The assessment involved four surveys:

1) 30 cluster epidemiological health questionnaire and prevalence survey

2) entomology survey, assessing the mosquito vectors in the area

3) �������������������������������������������������������������������������������intestinal, blood parasitology and virology survey examining the prevalence of intestinal parasites, malaria, dengue fever, Japanese encephalitis, and filariasis,

4) HIV/STD infection survey

1 Baseline Health Assessment: Tangguh Development Berau/Bintuni Bay, Irian Jaya (Papua), April 2000, p.3

62 BP Tangguh Integrated Social Program This survey was conducted in 12 villages on both the north and south shores of Bintuni Bay. Overall, 656 households were surveyed. The survey results were aggregated and refer to all villages surveyed.

The key findings of the Baseline Health Assessment were:

Primary Health Care

Access to health services in the Bay area is poor and contributes significantly to poor health outcomes in the local population. Confidence in the government-provided health services is low. Around the Bay, less than 20% of births are attended by a trained midwife, maternal anemia rates are high, usage of contraception is low and, as a result, the Maternal Mortality Rate is around twice the national average. The Infant Mortality Rate is also twice the national average. Factors contributing toward this are: (i) anemia in two-thirds of children, (ii) low immunization coverage (25%), and (iii) high incidence (+/-50 %) of malnutrition in children. The prevalence of infectious diseases such as malaria, tuberculosis, hepatitis and enteric infections exacerbate the adverse health conditions.

Malaria, Dengue Fever, Japanese Encephalitis and Filariasis

Mosquito vectors for malaria, Japanese encephalitis, dengue and filariasis are widespread in the area. Specifically, the survey found that:

 malaria has an overall prevalence of 20% (ranging from 1% to 70%)

 80% of survey population have had previous exposure to dengue fever

 more than 15% of the survey population has had previous exposure to viral encephalitis with 2% exposed to Japanese encephalitis

Most of the adults in Bay-area villages are immune to severe malaria. Nonetheless, malaria still contributes to a high mortality rate among children. In addition, malaria is also a risk to the non- immune adult population, such as workers from non-malaria regions, and former residents returning from the city.

Water and Sanitation

There is limited access to safe, clean drinking water. During the Baseline Health Assessment, intestinal parasites were found in 66% of those examined. As an example, in Tanah Merah and Saengga, respectively, 81% and 77% of drinking water sources were contaminated by fecal matter and only half of the houses had adequate sewage disposal. As a result of these factors, acute respiratory infection and gastroenteritis are common causes of illness and mortality, particularly in infants.

Sexually Transmitted Diseases (STD) Survey

Papua is experiencing a rapidly evolving HIV/AIDS epidemic: It currently holds 33% of all the reported HIV/AIDS cases in Indonesia, although its population represents only 1% of the country’s population. The cities near Bintuni Bay (i.e., Sorong, Manokwari, Fakfak and Kaimana) have active sex industries. Surveys have reported that HIV prevalence in sex workers in these centres may be as high as 17%. Behavioural surveillance survey data from Papuan men in other parts of Papua with similar demographics have shown a high level of mobility, multiple sex partners (including sex workers) and less than 10% regular condom usage by clients. These factors are likely to predispose the population to a worsening of the HIV epidemic.

4 The Project Setting 63 Summary

In summary, the inhabitants of Bintuni Bay villages are beset with a number of health challenges typical of rural areas of developing countries where high rates of infectious diseases appear to be the greatest cause of mortality. This is set against a background of poor access to health care, education and other infrastructure; low literacy levels; low household income; overcrowding; poor nutrition, and minimal health promotion activities and interventions aimed at prevention of lifestyle diseases such as smoking and sexually transmitted diseases.

To place the Baseline Health Assessment results in context, Tables 4.9-4.11 contrast the Key Health Indicators of the 12 villages surveyed with comparable data from Papua and Indonesia. In broad terms, the data shows a poorer health environment in the Bay compared with the rest of Papua or Indonesia as a whole. This is very much the result of inadequate health services for the Bay.

Table 4 .9 Key Health Indicators

Berau Health Indicator Papua Indonesia Bintuni Bay Infant Mortality Rate (per 1,000 live births) 147 55 49 Under-5 Mortality Rate 66 92 56 (deaths of children <5yrs per 1,000 live births) Maternal Mortality Rate (per 100,000 live births) 733 1,025 450 life expectancy at birth (yrs) 47 63 65

Table 4 10. Maternal and Child Heath Indicators

Berau Health Indicator Papua Indonesia Bintuni Bay contraceptive prevalence (%) 27 33 57 total fertility rate (births/women) 5.4 3 2.5 % women receiving antenatal care (4 visits) 41 32 69 % pregnant women fully immunized against tetanus 55 58 53 % births attended by trained health personnel 14 37 46 % children exclusively breast fed 0–3 months 42 72 52 % of under-2s completely immunized 25 78 55 % under-5s with moderate and severe malnutrition 46 36 34

Table 4 11. Indicators of Sanitation

Berau Health Indicator Papua Indonesia Bintuni Bay % population with access to safe water 45 67 74 % population with access to adequate sanitation 58 46 53

2 Sources: 1. 1995 Intercensal Population Survey (Supas 1995). Unpublished. Jakarta Central Bureau of Statistics 2. DEPKES (Departmen Kesehatan) (1998): Indonesia Demographic and Health Survey 1997. Jakarta: Centre for Health Data, Ministry of Health. 3. Soeharsono Soemantri, PhD (1997): National Household Health Survey Series (SKRT) 1995, Keragaman dan Kecenderungan Kematian Maternal di Indonesia. Jakarta: National Health Research Center, Ministry of Health. (3) 4. BPS (Biro Pusat Statistik) (1999): Statistik Kesejahteraan Rakyat (Welfare Statistics) 1998, Based on SUSENAS (National Socio-Economic Survey) 1998. Jakarta: Central Bureau of Statistics 5. DEPKES (Departmen Kesehatan) (1998): Profil Keshatan Indonesia 1998. Jakarta: Centre for Health Data, Ministry of Health 6. BPS (Biro Pusat Statistik) (1999): Statistik Keahatan (Health Services) 1999, Based on SUSENAS (National Socio-Economic Survey) 1998. Jakarta: Central Bureau of Statistics.

64 BP Tangguh Integrated Social Program 4 .3 .3 6. Education

In Kabupaten Teluk Bintuni, the Department of Education and Training of the regency government is responsible for for planning, budgeting, managing and ensuring the delivery of the program and budget for basic education, in particular the provision of financial support for all government-recognized schools (i.e., operational budgets, teacher salaries, etc.). The actual delivery of education services to the regency population occurs through one of two possible channels, the majority being managed by �������������������������������������������������������������������������������������������government while�������������������������������������������������������������������������������� ��������������������������������������������������������������������������non-government organizations assume��������������������������������������������� responsibility for a limited number of state schools. The non-government organizations are based on religious denomination, the two main NGOs being YPPK (Catholic) and YPK (Protestant). These NGOs operate primary and secondary schools (often associated with dormitories) that may or may not be recognized by the government. For the newly established Kabupaten Teluk Bintuni, an overall vision defining the educational needs of the Bay has yet to be defined and the key education service delivery stakeholders (government, NGOs, teachers, parents) are yet to establish a coordination framework within which this common vision can be achieved. Tables 4.12-4.14 describe the state of education in the regency.

Table 4 12. Educational Facilities, Kabupaten Teluk Bintuni

Type of Educational Facility District lower upper kindergarten primary PT secondary secondary Bintuni 5 17 4 1 1 Babo 3 22 2 - - Arandai 1 7 1 - - Merdey - 9 - - - TOTAL 9 55 7 1 1 Source: Manokwari Dalam Angka 2001

Table 4 13. Status of Basic Education, Kabupaten Teluk Bintuni

No of Primary Student/Teacher District Teacher Student Schools Ratio Bintuni 17 127 2,392 19 Babo 22 66 1,986 30 Arandai 7 33 535 16 Merdey 9 n/a n/a n/a TOTAL 55 226 4,913 22 Source: Manokwari Dalam Angka 2001

Table 4 14. State of Lower Secondary Education, Kabupaten Teluk Bintuni

No of SMP Student/Teacher District Teacher Student Schools Ratio Bintuni 4 35 582 17 Babo 2 19 244 13 Arandai 1 11 240 22 TOTAL 7 65 1,066 16 Source: Manokwari Dalam Angka 2001

Primary Education

The quality and delivery of basic education in Kabupaten Teluk Bintuni is poor. While the majority of villages have a primary school, government support of primary/basic education allows for the provision of only 1-2 teachers per primary school implying high student-teacher ratios and limited

4 The Project Setting 65 daily class time (1-2 hours per class per day). Schools are characterized by poor infrastructure: small desks, small classrooms, inadequate blackboards and other teaching aids, inadequate lighting and ventilation, etc. Teaching curricula are out-of-date (in relation to national standards) and textbooks are generally unavailable. Community, household and student interest in education and student educational attainment is limited. Student participation rates are estimated to be lower than 50% and completion rates are even lower (especially for girls). The majority of the population has not graduated from primary school and as a consequence the basic literacy and numeracy skills of the population at large are limited.

Irrespective of the service provider, at the village-level the following shortcomings of primary school education services are evident:

 inadequate infrastructure (both school and teacher housing)

 high student-teacher ratios (i.e., inadequate number of teachers per school)

 low teacher competency

 out-dated curricula

 limited access/availability of textbooks and other teaching aids

 limited household and community support and investment in education

 low student participation rates (<50%)

Secondary Education

Lower secondary schools are located in Tanah Merah, Tofoi, Babo, Arandai and Bintuni. These schools are of better standard than village-level primary schools. Nonetheless the number and quality of secondary schools operating in the regency is limited and inadequate to meet the needs of the population. As a consequence families send their children to secondary schools (with boarding facilities) in Fakfak, Sorong or Manokwari.

4 .3 .3 7. Industrial and Commercial Development

There has been a long history of resource extraction from the Bay. Historically, the area has been the source of various products important in trade. Under the jurisdiction of the kingdoms of Tidore and Ternate, the area was frequented as a source of tradable products including birds of paradise, cinnamon, damar, gaharu and nutmeg.

Industrial and commercial development of the area commenced during the Dutch occupation and continued when Papua joined Indonesia. During the Dutch period, oil and gas exploration activities led to the discovery of oil near Wasian and Mogoi in 1939 and 1941 respectively. When Irian Jaya became a province of Indonesia, commercial resource extraction increased dramatically. Over the last 20-30 years oil and gas exploration has continued. The Bay itself has been subject to intense (and largely unrestricted) harvesting of marine resources (i.e., fish and prawns) by commercial trawling operations and local fishermen since the late 1980s; logging companies are operational on the northern and southern shores, and oil palm plantation agriculture commenced in the 1990s.

Table 4.15 describes industrial and commercial resource development of the Bay. Key points are:

 The Bay primarily serves as an export-oriented supplier of raw materials for industry located outside the Bay. These industries have not contributed substantially to the development of the Bay and have had limited effect on the

66 BP Tangguh Integrated Social Program Table 4 15. Industry and Commercial Enterprises in Kabupaten Teluk Bintuni - - on i Locat Sidomakmur (T) SPI (T), SPII (T) Aroba Tofoi, II) Iraratu Warganusa, (Sara, Kaitero River River and Kuti Waperar Area between II) II, Iraratu Kuri (Kuri, rivers part of concession covers northwest reserve into nature feeding SE part of Bay Island Amutu based at Merah Tanah Argo, Sigema Tembuni, Tuasai, Manimeri, (SPIV), Buana Sian Awosai rai (SPV) Banjar Tama Warai (SPII), Jaya iri (SPIII), Korano Sibena I, II TSU Steenkol, (SPI), Yakati) (Mamuranu, Wamesa Arandai, Stenis Tembuni, Bintuni, Tuasai, Arandai, Stenis Tembuni, Mogoi, Wasion, Mogoi Manunggai Karya, Kecap, Kampung Baru Rejosari Sebyar - - ls i Deta 60-90,000 concession (HPK) of ha based on forest Rimba Irian Agoda PT ha 155,000 concession SK HPT 1989, forest ha 239,000 1992, HPT SK concession forest ha 76,900 concession SK HPT 1992, forest ha 150,000 concession SK HPH 1990, forest ha 178,000 concession SK HPT 1989, forest 200-300,000 ha Dipterocarp and man concession on lowland forest reserve in the to the nature from Bomberai grove ha east, 137,000 ha 175,000 concession SK HPH 1980, forest forest Dipterocarp and mangrove lowaland covering 85,000 ha concession SK HPH 1992, forest 182,000 ha concession SK HPH 1991, forest 204,000 ha concession SK HPH 1992, forest 90,000 ha and associ sago concession SK HPT 1992 ated sago factory Malgot- Wasian, area - Mogoi and PSCs in Bay 10 Arguni, Sareba, East Muturi, Semirak-JOA, JOB, Berau Wiriagar, Arguni, Babo, West 1990 1994 1989 1992 1990 1990 1989 1988 1989 1991 1993 1989 Start Sector trawling prawn palm oil logging & mill logging logging logging logging chipping wood LNG plywood, backboard logging logging Oil sago - Name Mina Raya PT Bintuni Maju Utama Varita PT Rimba Irian (Djayanti) Agoda PT Karya Agro Mina Bintuni Teluk PT (Djayanti) (Djayanti) Irian Perkasa Wana PT Lapis Indonesia) Sari (Kayu Wukira PT Timber (Mutiar Mutiara Wapoga PT Timber Group) Jaya Tarakan Lestari PT Bintuni Indus Wood Utama Murni PT Bintuni tries (BUMWI) Tangguh Lapis PT Henrison Iriana (Kayu Indonesia) PT Yotefa Sarana Timber (Kayu Lapis Timber (Kayu Sarana Yotefa PT Indonesia) Arthamas (Alas PT Rimba Kayu Group) Kusumah PT PT Sagindo Sari Lestari (Djayanti) and companies in exploration Various exploitation of oil and gas since the 1940s ct i str i D Babo Bintuni Arandai General Note: Many of the logging companies have ceased operation following a government crackdown on illegal logging in 2005.

4 The Project Setting 67 traditional economy and livelihoods of the Bay communities. Rather, activities to date have led to the creation of a dualistic economy comprising a modern extractive natural resource sector and a traditional subsistence sector.

 From a social development perspective, these industries have provided local employment and facilitated transport (both marine and, with the progressive development of logging, roads to connect towns) and trade of goods and services.

 As demonstrated in Table 4.15 and further illustrated in Figure 4.6, the Bay is covered by forestry concessions. Operation of the concessions is generally associated with establishment of an operational/logistical base within the concession. The logging and milling activities are generally supported by migrant labour although local villagers have also been offered opportunities to work. These bases are generally relatively isolated and insular and, as a result, the migrant workforce has limited interaction with the local population.

 These enterprises generally did not generally recognize adat and hak ulayat issues and engage in extensive consultations with tribes and clans to resolve these issues in a systematic manner. Rather, the companies promoted and utilized a geographical basis to identify ownership (i.e., proximity of residence) with the hak ulayat basis for resource ownership laid over this analysis. In contrast, the field reality emphasizes the historical and genealogical basis for resource ownership over and above geography. Furthermore, to facilitate resource extraction these enterprises have also promoted a breakdown of the traditional leadership system and monetization of adat and hak ulayat, and thereby led to increased conflict within and between tribes (particularly regarding resource ownership), a loss of community trust and cohesion, and environmental degradation. Specifically, by promoting multiple leaders and providing informal, ad hoc “compensation” to these leaders, the companies have generated uncertainty and conflict regarding tribal leadership and representation, given commercial value to hak ulayat, and facilitated environmental degradation (in mechanisms contrary to what the tribal adat would allow). As described in Chapter 3, these processes were supported by the broader institutional environment introduced by the Government of Indonesia.

In addition, as described above, several areas have been settled by transmigrants (primarily from Java and Sulawesi). There are 13 transmigration projects in Kabupaten Teluk Bintuni. Several of these projects were established in support of industrial and commercial development. In Babo district, these include Sidomakmur, supporting �����������������������������������������������fisheries and SPI��������������������������������� and SPII, supporting oil palm plantations, while in Arandai district, Arandai/Rejosari and Manunggal Karya were established to support a sago plant (now defunct). Several other transmigration settlements are located close to Bintuni. These communities primarily engage in small-scale commercial agriculture.

Finally, besides large-scale industry, small-scale entrepreneurial activities (trade, kiosks, motels) have been established in the towns of Bintuni, Babo, and, to a lesser extent, Arandai. The majority of these small-scale operations are owned and operated by Papuan Chinese.

68 BP Tangguh Integrated Social Program Figure 4.6 Forestry Concessions in Kabupaten Teluk Bintuni

4 .4 Tribes of Kabupaten Teluk Bintuni

4 .4 1. Tribal Groups

As indicated in Section 4.2.3.3, the indigenous communities resident in Kabupaten Teluk Bintuni belong to one of seven tribes (suku) occurring in the regency, namely the Moskona, Sough, Sebyar- Kamberan, Wamesa, Kuri, Irarutu, and Sumuri. Each tribe is made of clans (marga) which share a language, and customs (adat) and a system of resource ownership/rights and management (hak ulayat).

Figure 4.7 illustrates the geographical distribution of these tribes. The Moskona, Sough, and Sebyar- Kamberan reside on the north shore of Teluk Bintuni. The Moskona are the most distant from the Bay, residing in the mountainous north of the regency; the Sough are concentrated around Bintuni, and the Sebyar-Kamberan of Kabupaten Teluk Bintuni are all located in the former Aranday district. Both the Wamesa and the Kuri reside in the mangrove forests in the east, with the Wamesa occupying the northern areas and the Kuri the southern areas. On the south shore, the Iraratu reside in the southeast while the Sumuri are in the southwest of the regency. It is noteworthy that only the Sumuri tribe is found in its entirety in Kabupaten Teluk Bintuni. Representatives of all of the other tribes also occur in neighbouring regencies. For example, the Irarutu extend all the way to the south shore of the Bird’s Head in Kabupaten Kaimana, the Sebyar-Kamberan extend into Kabupaten Sorong Selatan, and the Sough are also found in District Ransiki of Kabupaten Manokwari. Also noteworthy is that villages occupied by indigenous communities generally comprise households that all belong to one tribe (albeit different clans within the tribe).

4 The Project Setting 69 Figure 4.7 Distribution of Tribal Groups in Kabupaten Teluk Bintuni

Table 4.16 illustrates the distribution and approximate population of tribal groups by village number for Kabupaten Teluk Bintuni. The Moskona occupy the largest number of villages while the Sough, Sebyar-Kamberan and the Irarutu have a similar number of settlements.

Table 4 16. Number of Villages and Population by Tribal Group, Kabupaten Teluk Bintuni 

No Tribe No Villages Population 1 Moskona 43 NA 2 Sough 17 6,926 3 Sebyar-Kamberan 12 7,855 4 Wamesa 5 2,824 5 Kuri 6 1,360 6 Irarutu 10 3,467 7 Sumuri 3 2,346 TOTAL 96

4 .4 .2 Tribal, Clan and Village Leadership

Nominally, each tribe has an overall leader who assumes representative and ceremonial roles where tribal representation is required. However leadership is most commonly and usefully expressed at the village level as clan leaders (elder, male clan members) who assume responsibility for clan issues. Clans with members distributed across villages recognize clan representatives in each of the

 Tribal population data are estimates derived from incomplete data of village population

70 BP Tangguh Integrated Social Program villages, a process that occasionally leads to internal dissent regarding identification and recognition of the most senior clan representative. Furthermore, in some circumstances the landholding clans on which the settlements are located are recognized, by other clans in the village, as holding the power to make decisions affecting the village community and resources. However this power is variably exercised.

The Government of Indonesia-led drive to consolidation of the population into government- recognized village units was associated with the establishment of government representation at village-level. Village government serves to link the village community with the district and regency government and to some extent serve to facilitate the delivery of government services (e.g., health, education) and assistance (e.g., housing; water and sanitation; technical extension services). Village-level government representatives are elected by the community and serve five-year terms with the possibility of re-election.

As described in Chapter 3, village government should comprise the executive (i.e., village head and various related administrative positions) and the legislative (BAPERKAM). However in practice most villages do not have an elected and/or effective legislative component of government, and the village head assumes both roles. As might be expected, the ability of an elected leader to fulfill his duties is variable. This is complicated by the general perception that this position confers authority and privilege rather than responsibility, and the rather poorly developed capacity of the community to demand representative and accountable government. Consequently the idiosyncrasy of leadership has the potential to significantly affect the development of any one village and in many circumstances, poor leaders are tolerated (and ignored to the extent possible).

In the communities, the male individual reigns supreme, while the traditional low status of women persists. The weakness of village-level leadership together with the lack of a strong community imperative provides significant room for individuals’ to express their individuality without consequence. For example, in village meetings dissatisfied individuals can express their discontent with either process or outcome by leaving meetings and thereby absolving themselves of responsibility. Similarly, this sometimes allows physically strong, aggressive and violent individuals to “dominate” communities.

4 .4 .3 Household, Family and Village Structure

Households comprise extended families based upon a core nuclear family. Accordingly, it is common to find three generations residing under one roof, with individuals and families working together to meet the household’s subsistence needs. Households are patriarchal with the male head serving as the representative and decision maker of the household and his spouse assuming a supporting role.

The gender division of labour places a heavy burden on women. While men assume greater responsibility for tasks requiring physical strength (e.g., clearing forest for agricultural gardens, felling of sago) women endure the burden of household management (i.e., child bearing and rearing, food collection and processing, tending of gardens, fuel wood collection, food preparation, hygiene, sanitation and washing). This burden places significant pressure and responsibility on women, all the more where household facilities (e.g., water and sanitation) and government services (i.e., health) are lacking.

While the division of labour described above clearly indicates that women contribute substantially to the household economy, men assume primary responsibility for generating and controlling income. Hence men tend to engage in income-earning activities (e.g., wage employment) and in enterprises

4 The Project Setting 71 involving higher and immediate/short-term cash flows (e.g., prawn collection and sale), leaving behind their spouses to take care of household affairs. Hence, overall, women are disempowered across a broad range of activities including: (i) representation, planning and decision-making in tribal and clan affairs; (ii) participation in village planning and decision-making; (iii) control and management of household affairs; (iv) participation in education and (v) participation in wage employment and income-generating activities.

Relations between households are complex, reflecting the linkages established through inter- marriage between families and clans, inter-family rearing of children, etc. Such networking of individuals, families and clans provides tremendous social benefits to the community, although it also presents greater difficulties for individuals to maintain a distinction between private enterprise and social obligations and for the community to regulate deviant behaviour.

4 .4 .4 Village Infrastructure, Services and Utilities

The villages in the area have limited infrastructure, services and utilities. Most villages have a public hall, a primary school, and places of worship (i.e., church, mosque). Households typically reside in simple small houses, raised on stilts, with flooring and walls made of rough hewn timber, and roofs made of nipa palm thatch or galvanized corrugated iron sheeting. House design and construction is influenced by tribe and environment although on the whole housing is similar across thekabupaten . Typically the house will comprise a living room (often also used as sleeping quarters), one or two bedrooms, and an open or detached kitchen which often also serves as a dining room.

Most villages do not operate communal generators. Rather, smaller groupings of households share a generator (with all contributing to operating costs) which is normally only operated in the evening for three to six hours. Villages do not have reticulated water supplies. Drinking water is sourced from rivers, wells and springs while bathing usually takes place at wells or in rivers. The north shore communities residing in the swampy areas of District Arandai have particular difficulties with water quality as the water has a high tannin content and water tables are very high thereby allowing ready contamination of water sources. Finally, households do not have septic waste disposal systems and, as a consequence, sanitation is poor.

Government presence in the villages is minimal. Occasional visits by the sub-district head occur, but technical extension visits (e.g., agriculture, fisheries, health) are virtually unknown. Government services (i.e., education, health) are variably provided. In education, religious institutions manage primary schools. Teacher-student ratios are low. Both teachers’ attendance and salaries are low. Many teachers frequently engage in private business leaving their teaching obligations (and hence education of youth) behind. This clearly is reflected in the low levels of education and literacy attained by the population.

4 .4 .5 Custom (Adat) and Traditional Rights (Hak Ulayat)

Land is an integral part of clan (and clan member) identity with linkages to the social, economic, cultural and religious facets of life. Land holdings confer status, dignity and honour. Patrilineal clan- based communal land tenure systems are typical with individual households securing usufructuary rights to land by permission of the eldest son. The history of tribal movement along the coastline as well as the Government of Indonesia’s initiative to develop and/or consolidate village settlements imply that the expression of hak ulayat is not necessarily coincident with settlement patterns. This implies that communities closest to (and who may utilize) an identified resource are not necessarily those that have jurisdiction over that resource. Rather, there are historical and genealogical bases

72 BP Tangguh Integrated Social Program for identifying and verifying who has the rights to control use and management of a specified resource.

Tribes with access to marine resources tend to manage these resources as common property. The only exception to this, are the Sumuri who recently have developed marine resource tenure rights. For the Sumuri, each clan assumes rights to marine resources directly in front of their lands. In practice, all village residents access and utilize marine resources coming under the jurisdiction of clans within the village although a usage fee is deducted at the point of sale and subsequently provided to the clans.

Other key aspects of adat and hak ulayat common across the seven tribes include:

 Evolution of adat and hak ulayat systems: Tribal adat and hak ulayat systems have evolved over a long period of time and continue to change. Such evolution includes hak ulayat claims to newly identified resources such as natural gas.

 Use of hak ulayat resources: While important to recognize the cultural importance of clan landholdings, it remains that the vast majority of the landholdings have limited use, existing primarily as a passive resource through which clans define themselves. The majority of clans are neither resident on, nor fully reliant on, their landholdings for their livelihoods. For example, the majority of the sago stands on the north of the Bay in District Arandai are not utilized.

 Equity: Bay communities have a specific sense of equity requiring that benefits derived from a common property resource are, to some extent, shared across the entire tribe. Failure to recognize and respond to this implicit sense of equity may rapidly lead to development of social envy and conflict.

4 .4 6. Livelihood Systems

Livelihood systems are largely defined by the environment in which households and communities reside.

 Communities located on lands with agricultural potential distant from the Bay itself tend to operate systems based on shifting cultivation of forest plots focusing on the production of tuber crops (i.e., cassava, sweet potato) and banana, collection of forest products and hunting. The communities in the vicinity of Bintuni (and particularly the transmigrant villages) invest substantially in commercial agriculture.

 Communities located close to the Bay on lands with agricultural potential combine various livelihood activities including harvesting of sago, shifting cultivation of forest plots, collection of forest products, hunting and fishing. Agriculture, which is used mainly to provide subsistence consumption needs, includes both cultivation of gardens attached to households, and swidden-based cultivation of forest plots, usually close to village settlements. Households secure usufructuary access and use rights of forest plots implying that the family cultivating the plot has rights to the products for the duration of the cultivation activities, after which ownership reverts to the clan holding traditional land rights.

4 The Project Setting 73  The Sebyar-Kamberan in Arandai district are primarily sago collectors and fishermen, reflecting the fact that they reside atop swampy areas with limited agricultural potential.

Both coastal communities and those proximate to industrial activities and/or the urban centres of Babo and Bintuni have, to some extent, shifted the relative emphasis of livelihood activities to commercial income-generating activities such as prawn harvesting and sale and intensive vegetable production. Finally, wage employment with industry or enterprise and, more recently, with the Tangguh Project is also a preferred occupation. Figures 4.8 and 4.9, showing livelihood activities and income sources, illustrate the trends outlined above.

4 .4 7. Village-level Commerce and Trade

The majority of village-level enterprises operate within villages rather than between villages. Within villages the most common enterprises are privately owned small kiosks selling a limited range of food and household goods. A small number of larger enterprises exist, including middlemen for general purpose kiosks, the supply of ice and nets, the purchase of prawns, etc. Cooperatives (or group owned businesses) have been established but have tended to end in failure. Despite the lack of microenterprise development, it is nonetheless clear that villages share needs and face common constraints. Common needs include transport and the supply of food and household goods, fuel, etc. Constraints to livelihood activities include transport, supply of inputs (e.g., ice, nets, cool boxes for prawn collection) and markets. In addition, households do not have the habit or practice of accumulating savings to replace productive assets as they depreciate, etc.

4 .4 .8 Response to Change

Bintuni and Berau Bays have had long periods of contact with change agents including the introduction of Islam and Christianity, trade relations with the Kingdoms of Ternate and Tidore, the Dutch administration, Japanese occupation during World War II and most recently, the annexation of Papua within Indonesia. While these changes led to the introduction of religion and new forms of political administration (and to a lesser extent leadership) substantive changes to the livelihoods of households and communities have primarily derived from trade-related contacts. In this context, communities around the Bay have demonstrated a remarkable degree of economic opportunism, shifting the focus of livelihood activities in accordance with the market opportunities that existed. Hence, over the centuries, there has been a transition from the collection and sale of forest products (e.g., nutmeg, gaharu, damar) and birds of paradise, to hunting of crocodiles and sales of their skins, to prawn harvesting and sale. Both the availability of markets and the scale and time of economic returns (i.e., reward for effort) have determined the rate of change and uptake of new opportunities.

Since Papua became part of Indonesia, the nature, scale and rate of change has altered. Over the last 30 years, resource extraction industries have been the major agent of change in Bintuni Bay. Besides the extraction and export of resources, these industries have had several impacts on the social and economic environment of the Bay. While being location-specific and driven by business interests, the operation of industries in the Bay has led to:

 increased transport

 increased supplies of goods and services

 ���������������������������������������������������������������������������the development of markets (i.e., prawns) and hence increases in household incomes

74 BP Tangguh Integrated Social Program Figure 4.8 Livelihood Sources and Potential of Natural Resources, Kabupaten Teluk Bintuni

Figure 4.9 Primary Income Sources, Kabupaten Teluk Bintuni

4 The Project Setting 75  �����������������������������������������������������������������������limited employment leading to limited internal migration and increased household incomes

 ���������������������������������������������������������������������������������limited spontaneous in-migration, despite support by larger-scale transmigration projects

 �������������breakdown of adat and hak ulayat relations

These impacts notwithstanding, the overall impact of these industries has been limited in terms of the rate and scale of change that they brought to the Bay and traditional livelihoods of rural communities.

In contrast, the development of the Tangguh Project in the Bay represents a new and altogether different change agent. By virtue of its scale, its business and employment requirements, and the publicity associated with its development, the Project will induce a “honey-pot syndrome” encouraging significant spontaneous in-migration and a range of induced impacts. The Tangguh Project will be associated with a significantly greater scale and rate of change than the region has seen to date, and has the scope to lead to substantial changes in traditional livelihood patterns over the next five to ten years.

4 .5 Conclusion

This chapter has demonstrated the complexity of the Bintuni Bay environment. Taken together, the political history and ongoing political change, the limited development of government and delivery of government services, the physical environment, the tribal groups and their constituent clans, and the social and cultural characteristics of the people make Bintuni Bay an extremely complex environment in which to work. This complexity places significant demands on the development and implementation of an integrated, inclusive social development plan that is cognizant of the indigenous and migrant communities aspirations and concerns. The Project is challenged with balancing the need to support development to meet basic needs whilst simultaneously endeavouring to ensure the participation and benefit of local people.

76 BP Tangguh Integrated Social Program 5 Public Consultations, Grievance Procedures and Disclosures

5.1 Introduction

This chapter presents details of Project consultations with stakeholders, grievance procedures and plans for public disclosure. The first section describes pre-Project consultations with communities in the Bay. A subsequent section describes the Project approach to consultation and promotion of participation of stakeholders in ongoing work. Next, the Project grievance procedures are described and finally, the plans for public disclosure of the ISP are presented.

5.2 Consultation

5.2.1 Pre-Project Consultations

Initial consultations with stakeholders occurred as part of the BAPEDAL (Indonesian Environment Impact Management Agency) requirements for the Project to develop a Social and Environmental Impact Analysis (SEIA). Figure 5.1 provides an outline of this consultation process.

In accordance with BAPEDAL Directive No. 8, 2000 the Project implemented a series of pre-Project public consultations. These consultations included: (a) public disclosure of the Project intent to develop Tangguh in Berau and Bintuni Bay, and (b) public consultations in villages proximate to the Bay in the kabupaten in the immediate vicinity of the proposed LNG site.

Public disclosure involved use of national and provincial media (newspapers and radio) and direct community meetings. Consultations were implemented at the national level (Jakarta), the provincial level (Jayapura), the regency level (Manokwari, Sorong and Fakfak), the district level (Inanwatan, Arandai, Bintuni, Babo, Kokas) and at the village level (15 village meetings at which 51 villages were represented).

To ensure that people in the Bay were able to effectively participate in and contribute to the SEIA process, representatives of each village attended an UNIPA-implemented training to build

5 Public Consultations, Grievance Procedures and Disclosures 77 awareness and understating of the SEIA process and also participated in a cross-visit to the LNG facilities located in Bontang, Kalimantan.

At the village-level, consultations typically involved a three- to fi ve-hour public meeting in the village meeting hall. While these meetings were open to all villagers, in cases where women’s participation was observed to be limited, separate meetings with women were implemented. Women’s meetings were held in approximately two-thirds of the villages visited. Consultations typically involved a presentation followed by facilitated discussions. Overall approximately 2,500 people participated in the consultations and several hundred people sent in letters providing the Project with over 2,000 concerns, recommendations, etc.

Table 5.1 presents a list of the towns and villages visited in the Bird’s Head. Table 5.2 presents a summary of the main concerns raised. Key concerns expressed by the communities related to:

(a) opportunities to participate in the Project through employment and supply of goods and services;

(b) development of the people through education, training, health services and water and sanitation;

(c) the need to respect local culture and customs, and

(d) prevention/avoidance of negative Project-induced impacts (e.g., in-migration, alcohol, STDs, etc.).

Figure 5.1 Outline of Tangguh Project SEIA Public Consultation Process

Consultation Process in Development of Tangguh LNG Project ESIA

Tangguh Project BAPEDAL/BAPEDALDA

1st Public Announcment Plans for Development of 2nd Public Announcement Tangguh LNG Project Develop Terms of Reference (TOR) for AMDAL (ESIA) for 2 May 2000 Tangguh LNG Project Jakarta & Jayapura Written responses (inputs, 27-29 May 2000 Jakarta & Jayapura suggestions and questions from stakeholders ( 30 days ) Develop TOR ANDAL Community Consultations (assessment) 51 Villages, 5 Districts, 3 Regencies, 2 Provinces 6 June 2000 27 May till 30 July 2000 Socialise draft TOR to DAVS and election/appointment of community Present TOR followed by Review Written responses (inputs, and Agreement by the ESIA suggestions and questions from representatives by BAPEDALDA ( 30 days ) Commission stakeholders (communities, NGOs, etc) Develop ANDAL,RKL,RPL 10 May 2001 (assessment, mitigation, 11-12 April 02 –Jayapura monitoring and compliance) 1 & 8 May 02 -Jakarta Review of and agreement on Socialise Draft AMDAL to DAVs and Written responses (inputs, ANDAL, RKL, RPL by ESIA suggestions and questions from Election and Training of Community Commission Representatives by BAPEDALDA & stakeholders (including UNIPA (March –April 2002) communities, NGOs) Tangguh LNG Project AMDAL Approval by Ministry of Socialise approved AMDAL amongst Environment DAVs, NGOs and other stakeholders

25 Okt 2002

78 BP Tangguh Integrated Social Program Table 5 1. Summary of Pre-Project Village Consultations Implemented, July-August 2000

No of No Location Date Villages Covered Persons

A Kecamatan Inanwatan, Sorong 1 Inanwatan town 22-Jul-2000 Sibae; Wadoi; Mate 112 2 Tarof 2-Aug-2000 Tarof; Negeri Besar; Siwatori 86

B Kecamatan Arandai, Manokwari 3 Arandai Town 29-Jul-2000 Tomu/Ekam; Aranday; 112 Manunggal Karya; Kecap; Kampung Baru; Sebyar Rejosari 4 Weriagar/Mogotira 1-Aug-2000 Weriagara/Mogotira; Taroy; 128 Kalitami

C Kecamatan Bintuni, Manokwari 5 Bintuni Town 19-Jul-2000 Bintuni Town 96 6 Manimeri village 22-Jul-2000 Argo Sigemaray; Banjar Ausoy; 142 (transmigration settlements) Korano Jaya; Naraimama; Bumi Saniari; Tuasuai; Manimeri

D Kecamatan Babo, Manokwari 7 Babo town 19-Jul-2000 Irarutu III village 56 8 Tanah Merah 20-Jul-2000 Tanah Merah 43 9 Tofoi 21-Jul-2000 Tofoi 75 10 SP2 (transmigration 22-Jul-2000 SP 2 58 settlement) 11 SP1(transmigration 22-Jul-2000 SP 1 70 settlement) 12 Saengga 23-Jul-2000 Saengga 43 13 Aroba 24-Jul-2000 Aroba 34 14 Warganusa I 26-Jul-2000 Warganusa I; Wargenusa II 58 15 Sidomakmur (transmigration 27-Jul-2000 Sidomakmur 77 settlement)

E Kecamatan Kokas, Fakfak 16 Kokas Town 28-Jul-2000 Kokas town; Baru; Sisir; Sekar 55 17 Arguni 29-Jul-2000 Arguni; Fior; Andamata; Forir 107 18 Goras 30-Jul-2000 Goras 73 19 Otoweri 31-Jul-2000 Otoweri; Tomage 59 20 SP I (transmigration 30-Jul-2000 Onim Sari; Mbima Jaya; Kundei 181 settlements) Indah; Bomberay VII; Warisa Mulya; Bomberai V; Mekarsari SP IV

summary total

20 town- and village-level July - August 1,665 consultations 2000

5 Public Consultations, Grievance Procedures and Disclosures 79 Table 5 .2 Public Concerns and Identification of Potential Impacts

No Town/Village Concerns

1 Manokwari • employment • respect of local traditions, culture and rights • education and training • access and transport 2 Sorong • employment • aspirations of local people in community development • education and training • business opportunities 3 Fakfak • employment • education and training • traditional rights and need for recognition and respect • transport (marine) 4 Tarof • LNG plant and environmental damage; pollution of marine environment and effect on fisheries-based livelihoods • employment • education and training 5 Inanwatan Town • LNG plant and environmental damage; pollution of marine environment and effect on fisheries-based livelihoods • employment • education and training • improved health services 6 Aranday Town • location of LNG plant in relation to location of gas • distribution of Project benefits • trust • education and training 7 Weriagar/Mogotira • location of LNG plant in relation to location of gas • distribution of Project benefits • education and training • improved health services • water and sanitation 8 Manimeri (transmigrant) • employment (especially if Project would employ Javanese transmigrants) • education and training • business opportunities - sale of agricultural produce • LNG plant and environmental damage; pollution of marine environment and effect on fisheries-based livelihoods • avoid development of discos and bars and loss of money • Project reliance on military for provision of security 9 Bintuni Town • employment • respect of traditional rights • introduction of liquor, drugs, STDs • maintenance of biodiversity • business opportunities - sale of agricultural produce 10 Babo (Irarutu III) • LNG plant and environmental damage; pollution of marine environment and effect on fisheries-based livelihoods • local customs and rights (land, forest) • education and training • Project benefits for village development

80 BP Tangguh Integrated Social Program Table 5 .2 Publ i c Concerns and Identification of Potential Impacts (cont .)

No Town/Village Concerns

11 Sidomakmur • LNG plant and environmental damage; pollution of marine environment and effect on fisheries-based livelihoods • Project reliance on military • Project benefits for village development • business opportunities - sale of marine and agricultural produce • education and training • water and sanitation • improved health services 12 Warganusa I and II • distribution of Project benefits • education and training • business opportunities - sale of agricultural produce 13 Tofoi • local customs and rights (land, forest) • education and training • employment • economic development • Project benefits for village development 14 Aroba • Project reliance on military • trust 15 SP I (transmigrant) • employment (especially if Project would employ Javanese transmigrants) • water and sanitation • transportation • business opportunities - sale of agricultural produce • education and training • electricity 16 SP II (transmigrant) • employment (especially if Project would employ Javanese transmigrants) • water and sanitation • transportation • business opportunities - sale of agricultural produce • education and training 17 Tanah Merah • employment • education and training • business opportunities • impacts on traditional livelihood activities (forest, marine) • respect of traditional culture • loss of traditional customs, social norms, etc. • trust • Project reliance on military • consultation and awareness 18 Saengga • inter-tribe, inter-clan, inter-village jealousy re: distribution of benefits • business opportunities • education and training • Improved health services • loss of traditional customs, social norms, etc.; introduction of alcohol, prostitution • Project benefits for village development

5 Public Consultations, Grievance Procedures and Disclosures 81 Table 5 .2 Public Concerns and Identification of Potential Impacts (cont .)

No Town/Village Concerns

19 Toweri • LNG plant and environmental damage: (i) pollution of marine environment and effect on fisheries-based livelihoods; (ii) air pollution; (iii) cutting of forest • education and training • water and sanitation • improved health services • trust 20 SP I (transmigration in • employment (especially if Project would employ Javanese Kokas) transmigrants) • education and training • Project assistance to improve infrastructure • in-migration induced change in morals and culture esp. prostitution • business opportunities - sale of agricultural produce • improved health services 21 Goras • employment 22 Kokas Town • employment • education and training • Project impact on traditional fisheries-based livelihoods • Project induced development of area 23 Arguni • employment • education and training • business opportunities – sale of marine produce • Project impact on traditional fisheries based livelihoods

An analysis of the responses by location (urban centre vs. village) and by ethnicity of community (i.e., Melanesian vs. transmigrant) indicates broad agreement on the concerns regarding Project development, i.e., development benefits, participation and mitigation of adverse impacts. In addition transmigrant communities expressed specific concerns regarding: (i) whether they would be eligible for employment on the Project, and (ii) whether they could do business with the Project (i.e., supply of agricultural and marine produce).

These concerns were utilized in developing the Terms of Reference for the Social and Environmental Impact Analysis, in developing the AMDAL and subsequently also taken as inputs for the development of the Project ISP.

Following development of the Terms of Reference for the Project SEIA, public hearings provided further scope for the public to give input to the SEIA process. Public hearings generated a considerable number of questions which, where relevant, were taken on board in finalizing the SEIA Terms of Reference. Further consultations occurred during the process of obtaining baseline data for the AMDAL.

Finally, once complete, the SEIA was presented to the public. As with the Terms of Reference, this exercise led to a significant number of inputs, which were taken on board as appropriate. As a consequence of the extensive consultations that occurred prior to and during the SEIA process, the final SEIA is considered to reflect public inputs regarding the Project design and its potential social and environmental impacts. The final SEIA provides a baseline of Project commitments to maximize Project benefits and avoid, minimize and otherwise mitigate adverse impacts. Specifically the document formalizes the establishment of the Integrated Social Program (formerly the Integrated Social Strategy) and its commitments as they pertain to cultural, social and economic concerns.

82 BP Tangguh Integrated Social Program As intimated in the narrative above, several methods were utilized to support the requisite AMDAL consultation and disclosure process. These included:

(i) public announcements provided through the printed and electronic media at the national and local levels;

(ii) consultations with interested groups in Jakarta and in Papua;

(iii) preparation of information materials targeted at different stakeholder groups;

(iv) presentations to various stakeholder groups, including local communities, local government, community leaders, NGOs, local universities, and media;

(v) consultation on the concerns of affected people by means of workshops at which information was provided on the nature of the Project, environmental, and social impacts, and proposed management measures and monitoring plans;

(vi) consultations with local NGOs participating in site tours, and national and international NGOs;

(vii) capacity-building of selected representatives of DAVs: as part of the AMDAL public consultation process, elected representatives were trained by local university and government specialists to ensure that participants were aware of and properly understood the Project and the AMDAL process;

(viii) a study tour of the Bontang LNG facilities in East Kalimantan by community representatives, and

(ix) addressing concerns raised through the pubic consultation process related to environmental and social programs.

5 .2 .2 Ongoing Consultations

During Project implementation the Tangguh Project is committed to ongoing consultation with a broad range of stakeholders. The objectives of such consultations are to: (i) seek partnership with stakeholders; (ii) engage stakeholders in selection of program priorities and program design (i.e., goals, objectives, activities, methodology, etc.), and (ii) provide stakeholders with opportunities to assess the Project.

Project consultations on program design involve a range of stakeholders including government, non- governmental organizations, civil society organizations and the communities. These consultations occur on a formal and informal basis and may involve: (i) pre-design consultations to ensure that the program will reflect priorities and/or needs, experiences and lessons learned of the various stakeholders, and (ii) consultations with target groups/beneficiaries as part of program design and implementation.

Participatory monitoring and evaluation of ISP programs is also a form of consultation with stakeholders that allows them to provide feedback to the Project. The monitoring and evaluation framework of the ISP calls for formal, internal monitoring and evaluation (M&E) at the program level and independent, external M&E of all ISP activities by an international M&E team. The ISP M&E framework is described in detail in Chapter 11.

In addition to consultations with the targeted beneficiaries of the ISP programs and ISP program implementation partners, the Project implements general stakeholder meetings with NGOs and with government. An annual NGO stakeholder meeting is conducted in Papua, providing the forum

5 Public Consultations, Grievance Procedures and Disclosures 83 for Project updates and feedback from the NGO community. Similarly, the Project also conducts regular meetings with government. In Kabupaten Teluk Bintuni these meetings occur on a quarterly basis while they occur every six months in Fakfak, Sorong and Manokwari. Consultations with national government occur on a regular basis.

Finally, the Project also facilitates independent assessment of the Project through stakeholder consultations. In����������� February 2003����,����������������������������������������� BP contracted the Tangguh International A�dvisory������������� Panel (�TI��A�P�)�,���� to provide external challenge and advice to BP on the social, political and environmental aspects of the Tangguh LNG Project in Papua. TIAP takes account of: (i) the effect on local communities; (ii) the effect on the environment and biodiversity, and (iii) the impact on political, economic and social conditions in Indonesia generally and in Papua in particular. The Panel’s work involves a combination of direct physical assessment of the field conditions and extensive stakeholder consultations with villagers, non-government and multi-lateral organizations active in Papua, donors supporting projects in Papua, and government at the district, regency, provincial and national level within the country. The Panel’s role is an advisory one and the Panel has no executive authority or responsibility in relation to the Project. The Panel reports to the BP group chief executive. Following development of a Project response to the TIAP report, the TIAP generally presents the results of their assessment to stakeholders and other interest groups in Indonesia and internationally.

5.3 Building Participation through Capacity-building

The majority of the Project’s Integrated Social Program includes local capacity building. Such capacity building aims to increase local participation in specific sectors and more generally in the social and economic development of the regency. With regard to the Project, ISP, to the greatest extent possible, meets its human resource requirements from Papua and the majority of programs described in this document are managed and implemented by Papuan staff. In the medium- to long- term it is envisaged that ISP will be managed by Papuan staff.

5.4 Grievance Tracking and Resolution

Although the Project’s development activities are based on the concept of partnership, the Project acknowledges the need to recognize all complaints or claims and to have an established grievance tracking and resolution mechanism to efficiently and transparently address issues as they arise. Accordingly, communities resident in the growth centres of Fakfak, Sorong and Manokwari as well as the towns (Bintuni, Babo and Arandai) and villages in the primary impact areas will have access to the grievance tracking and resolution mechanism as described below. The Project commits to ensuring that complainants can lodge grievances without cost and with the assurance of a timely response to the claim.

(i) Complaints may be registered in Project offices located in the growth centres of Fakfak, Sorong, Manokwari, in regency and district centres (Bintuni, Babo, Arandai), and in villages in Bintuni Bay. People wishing to register a grievance will be encouraged to raise the issue with ISP/Tannguh Village Reprsentatives (i.e., staff recruited from within the village). The Village Representatives staff will be responsible for documenting both verbal and written complaints. Complaints will be written onto a complaints log and action form. If however the complainant does not wish to speak to the Village Representative he/she will also be provided with the opportunity to register grievances with an appropriate, respected villager (village head or adat leader) or through a village forum.

84 BP Tangguh Integrated Social Program (ii) All complaints log and action forms will be forwarded to the ISP Field office. Forms will be assigned a number, documented and appropriate actions to close out the complaint will be determined and written onto the form. The complaints log and action form records (a) who reports the complaint; (b) the date the complaint was received and recorded; (c) the nature of the complaint; (d) information of proposed corrective action; (e) date response (verbal and written) was provided to the complainant; (f) corrective actions taken by whom and when; and (g) the date the complaint was closed out. Where necessary the ISP Field team will investigate complaints from the community and an investigation report will be developed.

(iii) Timelines for possible actions will be determined by the nature of the grievance. The ISP Field team will assume responsibility for ensuring all actions are implemented to close out the complaint. Where necessary compensation (monetary or in kind) will be provided.

(iv) Tthe ISP Field Manager will assume primary responsibility for responding to and otherwise dealing with the complainant directly. If unable to address the grievance directly the ISP Field Manager will engage ISP program managers and other Project management units as appropriate. However the ISP Field Manager remains responsible for tracking the complaint and ensuring that it is dealt with.

(v) A written response for every grievance will be prepared within 14 days. The written response will be delivered verbally before a hard copy is provided to the complainant. The complainant will be asked to sign and date the complaints log and action form to confirm receipt of the Project response. If more time is required to implement appropriate actions, the ISP Field team will inform the complainant.

(vi) Major community concerns and complaints will be addressed during community meetings and actions will be communicated during these meetings to ensure transparency of the procedure.

While the majority of individual, group and community grievances will be resolved at the village‑level, a hierarchical grievance resolution mechanism has been developed as follows:

(i) direct resolution at the individual or group level

(ii) community-level resolution through public meetings

(iii) resolution through a stakeholder group comprising government, religious and adat leaders, etc. from within Kabupaten Teluk Bintuni

The Project will establish and maintain a centralized grievance log and tracking system. This database will be utilized to: (a) allow all registered grievances to be tracked and recalled as and when necessary; (b) provide a monthly summary of grievances by type and number, and (c) allow the Project to respond to common grievances through radio and written media. The Project’s performance in managing and closing out grievances will be reviewed as part of internal and external monitoring.

5 Public Consultations, Grievance Procedures and Disclosures 85 The Project will utilize various media to ensure broad community level awareness of the grievance procedure. Specifically, information may be provided through:

(i) commercial and community radios

(ii) posters, to be hung in Kabupaten Teluk Bintuni towns and villages

(iii) a cartoon booklet illustrating grievance procedures, to be distributed to affected communities, and

(iv) direct communications with the ISP field team

5.5 Public Disclosure

In accordance with ADB policy requirements (including the Policy on Communications (2005)), the Project will disclose the Project IPDF, the summary of the ISP and the full ISP. In addition, the Project will provide villagers with a short Indonesian-language summary description of the ISP. The TIAP reports, described in Section 5.2.2, are disclosed and are available on the BP website. Finally, as described in Chapter 11, all monitoring and evaluation reports will also be disclosed.

5.6 Conclusion

This chapter has demonstrated the Project’s substantial efforts to consult with local communities. Both pre-Project and ongoing consultation and the promotion of participation in Project design and implementation are a hallmark of the Project. A simple grievance procedure has been developed for use across Kabupaten Teluk Bintuni including the communities, the towns and all Project sites.

86 BP Tangguh Integrated Social Program SECTION III ASSESSING PROJECT IMPACTS

6 The Tangguh Project Impacts

6 1. Introduction

An assessment of the type, nature, magnitude and location of the Project’s potential impacts on indigenous people is a key step in defining the scope and content of the Integrated Social Program. This chapter identifies and describes the Tangguh Project’s potential benefits and adverse impacts.

6 .2 Project Benefits

The Project potentially brings three core benefits to the Bay, the Bird’s Head and Papua.

I Employment: The Project will provide significant employment opportunities across a broad range of activities (e.g., exploration, construction of Resettlement-affected Villages, construction and operation of the LNG facility) and over an extended period of time. Such employment brings a range of benefits, including on-the-job training, development of skills, and income.

LNG construction-related employment requirements provide the main opportunity for the Bay, Bird’s Head, and Papuan communities to participate and benefit from the Project. Between YR2005-2008, the construction phase labour requirements of the Project will progressively increase from 1,000 labourers in the first year of construction to a peak of over 5,800 labourers in the third year of the Project (Figure 6.1). Labour force requirements include positions for non-skilled, semi-skilled and skilled personnel.

Workforce requirements for LNG facility operations are estimated to be between 300-500 people, the majority of whom will be skilled personnel. In addition, Project requirements for various goods and services (e.g., security, catering, landscape management) will generate local employment opportunities.

6 The Tangguh Project Impacts 89 Figure 6.1 LNG Construction-Related Workforce Requirements

II Business: Construction and operation of the LNG facility (and associated Project activities) provides Papuan businesses with opportunities to supply goods and services to the Project (and its Contractors) and thereby derive direct benefit from the substantial investment associated with development of the Tangguh Project. While income and profit associated with the supply of goods and services represents the primary benefit, secondary benefits include building awareness, knowledge and capacity to do business with multinational corporations adhering to specific business ethics, international standards, etc.

Papuan businesses will be able to participate in competitive tenders for Project needs. Given the state of business development within Kabupaten Teluk Bintuni, it is clear that the majority of goods and services required for construction of the LNG facility will be sourced from outside the kabupaten. Nonetheless opportunities do exist for the supply of agricultural and marine produce, small-scale furniture production, etc. The operational needs of the LNG facility (e.g., landscape management; general maintenance including painting, welding; etc.) will also produce a range of small- and medium- enterprise opportunities that potentially could be met by kabupaten and Bird’s Head businesses.

III Revenue: The Papua Special Autonomy Law, passed in 2001, provides for an increased allocation of revenue derived from natural resource extraction in Papua to be retained by the Province. With regard to gas production, the PSAL stipulates that for the first 25 years the GOI Project-derived revenue will be shared between Papua (70%) and the Indonesian central government (30%). After 25 years, revenues will be shared 50:50 between the central government and the province. The PSAL further specifies that 30% of this revenue is to be spent on the education sector and 15% of revenue be spent on delivery of health services. Hence following completion of cost-recovery and debt repayment, it is anticipated that implementation of the Special Autonomy Law will provide Papua with its share of the Government of Indonesia Tangguh gas profit. It is through the application of the Papua Special Autonomy Law,

90 BP Tangguh Integrated Social Program combined with the regional autonomy/fiscal decentralization laws, that the revenue generated by the Tangguh Project may contribute to provincial income and thereby provide the potential basis for the further social and economic development of Papua. In turn such development has the potential to benefit a much larger number of people across the whole province. (NB. At this time considerable political and legal uncertainty regarding the implementation of the PSAL persists. Consequently the revenue implications of the PSAL are also uncertain).

In addition to these core benefits, the development of the Project in Kabupaten Teluk Bintuni and more generally in the Bird’s Head Peninsula of Papua will serve as a catalyst for enhanced investment and development of the region. The benefits of such investment and development can be predicted to include improved access to goods and services (i.e., transport, communications, etc.) and greater levels of enterprise, employment and income. The kabupaten population, the regional urban centres, and the Bird’s Head in general will be the primary beneficiaries of these changes.

6 .3 Adverse Impacts

There are a wide range of direct/indirect, actual/potential adverse impacts. Planned Project activities may lead to direct physical and/or social adverse impacts while the development and operation of the LNG facility may induce various physical and/or social adverse impacts. The Project’s potential adverse impacts are described below.

6 .3 1. Direct Adverse Impacts

I Impacts on natural resources: The Project will impact directly on natural resources and people’s ownership, access and use of natural resources.

The environmental impacts of the Project are addressed in the Project’s environmental impact analysis. These impacts include:

a) adverse effects on water quality of Bay due to treated waste water discharge, drilling discharges (if technically not feasible to be re‑injected), dredging, disposal of dredged material, and potential spillage of fuel/condensate

b) adverse effects on flora and fauna of the Bay due to potential fuel/ condensate spills, the burial of rocky hard bottom fauna by through disposal of dredged material, and the potential introduction of exotic species by ballast water discharges

c) reduction in shoreline vegetation in the vicinity of the LNG facility associated with developing the pipeline shore approach (if horizontal directional drilling is not used), and also potential fuel/condensate spills, potential changes in water quality, etc.

d) reduction in on-shore soil stability in the vicinity of the LNG facility associated with land-clearing and potential illegal settlement. Reduced soil stability may lead to increased erosion and sedimentation, reduction in water quality, and reductions in the population of flora and fauna, and

e) reduction in onshore fauna in the vicinity of the LNG facility due to noise disturbance

6 The Tangguh Project Impacts 91 The Project AMDAL contains detailed description and analysis of the potential environmental impacts of the Project and mitigation measures. No further reference to potential environmental impacts is made in this document.

II Impacts on cultural sites: Project development may impact upon cultural sites of importance to clans and/or tribes in the kabupaten.

III Directly Affected Villages: The Project AMDAL recognizes Directly Affected Villages (DAVs), a group of nine villages that have been identified as being directly impacted by the Project. The rationale for their selection includes exploration phase impacts, proximity to the Project, involuntary resettlement impacts, etc.

IV Resettlement: As indicated in Chapter 2, the site selection process for the LNG facility resulted in the selection of an area on which the Tanah Merah village community was resident. As a consequence, the Project was required to implement a resettlement program. This program is defined and described in the Project’s Land Acquisition and Resettlement Action Plan (LARAP). The main resettlement impacts include:

a) relinquishment of 3,466 ha of clan lands by the Sowai, Wayuri and Simuna clans of the Sumuri tribe

b) relocation of the Tanah Merah community to two new villages, namely Tanah Merah Baru and Onar Baru. Relocation involved the loss of productive resources, assets and established ways of life and the need to re-establish livelihoods in the new locations

c) disruption of and changes in access to sacred sites (including cemeteries)

d) impacts upon the host communities of Saengga and Onar Lama, e.g., changes to access and use of productive resources, social changes, etc.

e) potential disruption of transport patterns and access to and use of fisheries associated with exclusion zones around offshore platforms, undersea pipes, and in front of the LNG facility

In accordance with ADB involuntary resettlement policy and guidelines, the Project’s Land Acquisition and Resettlement Action Plan (LARAP) identifies and addresses Project-affected People. The LARAP specifies how the Project has and will respond to situations where people’s ownership, access and use of natural resources (and hence their potential to earn livelihoods from these resources) is impacted.

V Project construction and operational requirements: By comparison to the construction phase, the operations phase of the LNG facility has minimal workforce and support requirements. Furthermore, during the operations phase the Tangguh LNG facility will not have any multipliers through which the local economy, and hence the local population, can continue to participate and derive benefit. Post-construction, the majority of employees will return to their villages, their pre-Project employment and previous economic levels. The risk of social unrest and conflict during this period is considered to be high as communities hosting the Project may experience disillusionment and resentment about the loss of benefits.

92 BP Tangguh Integrated Social Program 6 .3 .2 Potential Project-induced Adverse Impacts

The Project has the potential to induce a range of impacts. These impacts centre on:

 the potential impact of employment and increased household incomes

 social envy and conflict regarding participation and benefit distribution

 the inevitable “honey-pot syndrome” whereby the Project serves as a magnet for potential employees, entrepreneurs, etc., thereby inducing high levels of in-migration leading to increased competition for resources, services, employment, and Project business and potentially changing the fundamental environmental, social, and economic character of the Bay

 development-induced marginalization of indigenous peoples

I Potential impact of employment and increased household incomes: In the Bay, construction-related employment may draw much of the population out of their villages to the LNG facility where they will experience a regulated working environment and interact with people from outside their immediate environment. By implication, there will be a reduced participation in traditional livelihood activities that may lead to increased medium- to long-term dependency on the Project.

A lack of familiarity with higher levels of disposable income and hence limited experience in money management may lead to lead to boomtown expenditure patterns where funds are rapidly spent on household goods (e.g., TV, a satellite dish, stereo system) and limited investment in longer term priorities such as education, alternative livelihood opportunities, etc. takes place. Furthermore, experience demonstrates that often the incomes are spent and loans are secured from external moneylenders, resulting in households assuming substantial debt. This may be further exacerbated by the patriarchal society in which men control incomes and the risk that such funds are spent on vices (e.g., alcoholism, gambling, prostitution).

II Social envy and conflict regarding participation and benefit distribution: Implementation of a large-scale project such as Tangguh generates high expectations among multiple stakeholders who compete with one another to participate in and benefit from the Project. Both Project actions and stakeholder competition have the potential to cause social envy that may lead to conflict. Two examples are provided below:

a) North and south shore communities in the Bay: From the outset north shore communities expressed a preference that the LNG facility be constructed on the north shore. The selection of a site on the south shore and subsequent Project implementation has seen substantial investment in, engagement with, and development of south shore communities. In particular, the Project’s focus on—and demonstrated rate of development in—the Resettlement-affected Villages, together with the high standard of housing provided to resettlement-affected households, contrasts markedly with the perceived delays in Project implementation and the lack of direct and immediate benefits experienced by north shore communities. This is especially critical as part of the identified reserves lie under the north shore

6 The Tangguh Project Impacts 93 communities while none of the gas reserves are found under the south shore communities. As a consequence, these issues have rapidly become a source of envy between the north shore communities and the Project and, to a lesser extent, between the north shore and south shore communities.

b) Revenue streams: As previously described, the Papua Special Autonomy Law prescribes that the GOI Project-derived revenue will be shared between Papua (70%) and the Indonesian central government (30%). At this stage, four key issues are associated with this revenue stream:

 implementation of regulations regarding revenue distribution

 current changes in the administrative environment—the sub-division of Papua into two (or more) provinces and the establishment of more regencies has the potential to lead to conflict regarding allocation of the revenue

 within the province, the allocation of revenue between regencies has the potential to lead to conflict�—�����������������������������������this����������������������������������� being especially the case with regard to regencies providing the resources generating the revenue

 the government (many sectors of which are newly formed) has limited capacity to manage the revenue streams and ensure delivery of development benefits

The four issues outlined above present potential sources of conflict at every level of government and civil society and, coupled with limited government capacity, have the potential to undermine the potential development benefits of Project-generated revenue streams.

III The “honey-pot” syndrome: The experiences of other oil, gas and mining industry developments in Indonesia demonstrate that Project-induced impacts should be a concern for the Tangguh Project. In the vicinity of the Freeport mining operations in Timika, Papua statistics show a 40-fold increase in the number of people in the since the start of operations and population growth rates remain high . Similarly, in the vicinity of the LNG facility in Bontang, East Kalimantan the population has increased 28-fold in the 27-year life of the Project. In contrast, the Newmont operation in Sumbawa has seen a doubling of the population during the 13 years of exploration and production.

Given the proximity and publicity associated with Freeport operations, it is not surprising that the local and Bird’s Head population are aware of potential Project-induced impacts and that they express a desire to avoid the problems associated with Freeport. Such awareness was demonstrated during pre- Project AMDAL consultations with Bay communities. However such awareness is not deep-seated and on the whole the communities in the Bay have a limited awareness of the type and scale of induced impacts that a large- scale project can bring and how these impacts might be managed.

 Freeport actively encouraged migration to the area, in part to provide the substantial support services that the operation required.  The Bontang operation has a multiplier effect in that a fertilizer factory has also been established.  The pre-Project AMDAL consultations are described in Chapter 5.

94 BP Tangguh Integrated Social Program In summary while acknowledging that each case is unique, the inevitably of a substantial increase in the Bay population must be recognized and the potential impacts of this population influx must be considered. These induced impacts are described below.

a) Population influx: Both the scale of and the publicity associated with the Project ensure that it will attract migrants to the area. While population increases are not likely to be of the magnitude observed in Timika and Bontang, it remains that an increased population is inevitable and that this population will: (i) put pressure on existing infrastructure and services (e.g., health, education); (ii) increase competition for natural resources and Project-related benefits (i.e., employment, business opportunities, etc.) and (iii) potentially lead to dilution of local culture and customs, marginalization of local groups, and, in so doing, precipitate ethnic tensions.

b) Economic marginalization: Through in-migration, the Project will attract a wide range of people with various skills. The majority of these people will be familiar with the working principles of the mainstream economy (i.e., regulated work hours; contract-based salaried employment; health, safety and environment standards and practices; etc.). In contrast, the local population lacks exposure to and work experience in these conditions. They are further disadvantaged by their low standards of health and education (caused by the poor state of services in the Bay). Finally, local people also have different cultural, social, and economic norms that reduce their competitiveness in a mainstream economic environment. Together, these factors may hinder participation and competition of local people in the developing economy and in this way the local people may be marginalized.

c) Health: The LNG workforce and other migrants will be susceptible to a wide range of locally prevalent communicable diseases including, malaria, dengue, TB, etc. Similarly, a migrant population can introduce various diseases to the local population. Health assessments indicate that the greatest risk is associated with the introduction and spread of Sexually Transmitted Diseases (STDs) and HIV/AIDS. While recognizing that commercial sex workers (CSWs) have been active in the Bird’s Head for some time, it is reported that CSWs are moving to the regional centres as well Bintuni, Babo and the resettlement-affected villages in the Bay. Introduction and transmission of STDs is a particular concern in the local patriarchal society where increased status and wealth often lead to increased participation in the commercial sex industry.

d) Environmental damage: An influx of migrants and business will lead to increased use and exploitation of natural resources. Unmanaged resource exploitation and land use change can significantly disturb the natural wealth of the Bay (e.g., through logging, erosion, and resource depletion (fisheries, forests)) and reduce the potential for sustainable use of these resources. Of particular concern is the medium- to long-term integrity of the mangrove forests located at the far east of the Bay.

e) Crime, social conflict and security: An influx of migrants to the regional centres and the Bay may lead to increased crime. The stresses associated

6 The Tangguh Project Impacts 95 with rapid change together with newfound affluence may lead to increased alcohol use and abuse and increased violence against women. Finally many of the induced impacts described above have the potential to cause social conflict, ethic tensions, and a reduction in the overall security of the environment.

IV Development-induced marginalization of indigenous peoples: Project implementation will bring rapid and significant change to the Bay. Amongst indigenous people such rapid change often leads to insecurity and a perceived loss of control over their lives and their environment. To reduce the risk of this outcome and the inevitable conclusion that change is being forced onto the local communities, special efforts need to be made to encourage participation in the development process so as to create a sense of ownership and responsibility for the management of change. In a related manner, improved education, greater levels of employment, more interaction with outsiders and an influx of migrants all contribute to a dilution of local culture and custom (e.g., adat and hak ulayat). Special efforts are required to ensure that cultures are recognized, respected and able to maintain their integrity in the face of change.

6 .4 Conclusion

This chapter has described the Tangguh Project’s actual and potential impacts. As demonstrated in Chapter 5, stakeholders (including indigenous communities) have expressed similar concerns during pre-Project consultations. Specifically their concerns related to: (a) opportunities to participate in the Project through employment; (b) development of the people through education, training, health services and water and sanitation; (c) the need to respect local culture and customs, and (d) the avoidance of negative Project-induced impacts (e.g., in-migration, alcohol, STDs, etc.). Taken together, an analysis of the public concerns regarding the development of the Tangguh Project and the analysis of the potential impacts of the Project provide the basis for defining the scope and content of the Project’s ISP.

Chapter 7 describes Project positions on a range of matters that together aim to address issues of participation, benefit and mitigation of adverse impacts. Many of these issues are of specific relevance to indigenous people. Chapter 8 lists the programs contained within the ISP and demonstrates how these programs address identified issues and/or impacts. It subsequently provides a more detailed description of the programs contained within the ISP. Chapters 9-10 describes Project implementation and Chapter 11 describes Project monitoring and evaluation.

96 BP Tangguh Integrated Social Program SECTION IV PROGRAM DESCRIPTION AND IMPLEMENTATION

7 Project Positions and Indigenous People’s Issues

7.1 Introduction

As indicated in Chapter 1, the Project has defined Project positions on a range of matters that together aim to address issues of participation, benefit and mitigation of adverse impacts. This chapter sets out relevant Project positions that have general application across the full range of Project activities. The Project positions are based on the Social Responsibility Policy set out in the AMDAL, the aim of which is to achieve the highest standards for the social and environmental aspects of the Project.

As is demonstrated in subsequent sections, there are a broad range of issues, many of which are specifically relevant to indigenous people. While certain ISP program components are designed to address specific indigenous issues, indigenous issues are also addressed generally by the establishment of Project positions that are then applied across the full range of Tangguh Project activities. Section 7.2 to 7.5 discuss issues of general application while Section 7.6 to 7.14 discuss issues of specific concern to indigenous populations.

ISP field experience demonstrates that it is not always straightforward to directly implement these Project positions. The Project faces pressure from multiple stakeholders - local, national and international – with different priorities and approaches. Many exert pressure on the Project to address specific concerns directly and without delay, without full consideration of the political, legal, social, economic and environmental conditions in which the Project is situated and thus the suitability and sustainability of such interventions. The goal of the Project is to identify and promote development initiatives for which the Project may serve as a catalyst, but which have the potential to be sustained, to expand, and to continue well beyond the duration of Project involvement.

This chapter describes the Project positions, explains the rationales for the positions and subsequently provides examples of how the positions have been applied.

7 Project Positions and Indigenous Peoples’ Issues 99 7 .2 Boundaries of Project Responsibility

Together with Project stakeholders (primarily local communities, government and the Project) the Project has defined and promoted awareness and understanding of stakeholder responsibilities. The Project has worked consistently with all stakeholders to establish appropriate boundaries of responsibility. Implementation of all Project activities is consistent with and reinforces the agreed-upon boundaries of responsibility.

A key issue for the Tangguh Project has been to identify, as clearly as possible, the boundaries of the Project’s responsibilities. Comprehensive stakeholder consultation, dialogue and involvement are essential components of the Social Responsibility Policy. The Project seeks to respond in a meaningful way to the aspirations and concerns of multiple stakeholders. Specifically, the Project must satisfy the requirements placed on it as a consequence of its adherence to international guidelines and the AMDAL, must respond to the communities’ aspirations and high expectations, and, overall, work towards ensuring a peaceful and harmonious environment.

While willing to support government, the Project is cognizant of the roles and responsibilities of government and thus seeks to minimize its direct involvement in activities normally implemented by government (particularly in the provision of government services to the communities). Nevertheless, the Project recognizes that local government faces numerous constraints including poor infrastructure, limited capacity and limited budgets. Where the Project does intervene to provide support directly, it does so for a limited period, which is linked to facilitating the capacity of government or local communities. Similarly, the Project seeks to minimize the provision of direct assistance to local communities, such that they become passive recipients of development benefits. Nonetheless, the Project has to deal with the consequence of communities’ experiences with other resource extraction operations in Papua. This has led local communities to have high expectations and place significant pressure on the Project for immediate, tangible deliverables.

Accordingly, the Project has sought to achieve a common understanding and definition of stakeholder responsibilities—primarily that of communities, the government and the Project itself—and a broad recognition and acceptance of the extent and interface of these responsibilities.

7 .3 Human Rights and Security

The Project supports the principles enshrined in the UN Universal Declaration of Human Rights and the US/UK Voluntary Principles on Security and Human Rights and will ensure their application in all Project activities.

The Project recognizes that, given Papua’s history, human rights and security comprise particularly important issues. In recognition of these concerns, several measures have been taken:

 The Project has devised and implemented an Integrated Community- based Security system (ICBS). The ICBS approach recognizes that the key parties in relation to ensuring security in the vicinity of the Project are the local communities. These communities interact with multiple stakeholders including other communities, the Project security and operations staff, the police and the military. The ICBS approach involves building stakeholder awareness and understanding of Indonesian legislation pertaining to law and order, establishment of a district-level security forum, and implementation of community policing. Together, these activities are aimed at promoting

100 BP Tangguh Integrated Social Program a common understanding of security and a sense of shared ownership for security outcomes.

 ����������������������������������������������������������������������Together with the Head of the Papuan Police, the Project has executed guidelines for the provision of joint security within the Tangguh LNG Project area. The guidelines set out general principles that form the basis for the provision of security and commit all parties to uphold the principles of human rights. Specifically all parties commit themselves to complying with the Voluntary Principles on Security and Human Rights and the UN Basic Principles of the Use of Force and Treatment of Offenders. Under normal circumstances, the Project’s own security group will be in charge of providing security. Where the Project assesses that a situation warrants the involvement of police, it will request police assistance. The guidelines discuss the procedure and time frames for the Project to request security assistance and for the police to respond to such a request. The guidelines also specify that involvement of the Indonesian army will only be at the request of the Project and the police. The aim of the Project is to minimize the need for external security forces, and to work with the community to ensure that security is maintained.

 ��������������������������������������������������������������������������The Project has developed a human rights incidence procedure that will be widely socialized. These procedures will enable the Project to deal immediately and effectively with any situation that entails human rights issues.

 �������������������������������������������������������������������The Project has engaged international and Papua-based human rights organizations to implement a human rights training program for the Project’s security guards.

All employees and contractors are fully informed of human rights policies, and the importance of these being applied consistently.

7 .4 Gender

The Project integrates a Gender and Development perspective across implementation of all its activities.

The Project is cognisant of the PSAL defined role of women in the MRP, the current status of women, their roles and responsibilities, and the potential impacts of the Project on women and their families. In response to these concerns, the Project has developed and incorporated a specific focus on gender in all of its activities. This program entails:

 ���������������������������������������������������������������the development of a Women’s Empowerment program (described in Chapter 8), including development of a Bay-wide Women’s Forum

 ��������������������������������������������������������������������������������specific support of women’s participation in education, vocational training and microenterprise

 specific consultations with women to discuss program design, etc.

The Project has initiated a number of training programs, covering a range of issues designed to both support women in the immediate term, and to prepare them for the changing environment in which they and their families will live. For example, given the fundamental constraints of the social and economic environment in the Bay, a basic activity such as promoting literacy and numeracy skills will enable women to further participate in more complex training programs.

7 Project Positions and Indigenous Peoples’ Issues 101 7 .5 Compliance with Legislation

The Tangguh Project will comply with all applicable Indonesian legislation.

The Tangguh Project complies with all applicable Indonesian legislation. Identification of the applicable legislation, and the appropriate application thereof, has been made more complicated by the various autonomy laws and related legislation (both national, and with specific reference to Papua). The importance of adat norms and customs in Papua provides a further dimension to this issue. Where Indonesia does not legislate on certain issues, or where the legislation is not comprehensive, the Project has relied on international guidelines and standards to frame its treatment of the issues.

7 6. Papuan Autonomy

The development of the Papuan Special Autonomy Law (PSAL) will have a significant impact on the general social, cultural, political and macro-economic climate within which the Tangguh Project operates. Specifically, the PSAL is significant to the Tangguh Project for the following reasons:

 �����������������������������������������������������������������������������The law transfers considerable administrative and legislative authority from central government to provincial and local levels of government, thereby giving provincial and regional administrations greater authority and responsibility to create and implement development plans.

 �����������������������������������������������������������������������������Financial stipulations of the PSAL indicate that the provincial government’s share of revenues generated by resource extraction should contribute substantially, in due course, to the province’s future income.

 ����������������������The PSAL now requires adat and ulayat rights to be acknowledged and respected .

As described in Section 4.1 the political situation remains dynamic and hence implementation of the Papuan Special Autonomy Law remains uncertain. This uncertainty significantly affects the practical implementation of ISP socio-economic development programs targeting medium-to-long term sustainable development outcomes. Nonetheless, this uncertainty is not preventing the ISP from program implementation. Rather, while specific programs may be at the cutting edge of the evolving situation in Papua, the capacity-building aspects of these programs have general relevance. Hence program implementation is occurring as follows:

 a Papua-level revenue management program

 a Bird’s Head-level government capacity-building program

 a Bird’s Head-level civil society strengthening program

 ��a kabupaten-level government capacity-building program

 ��a kabupaten-level Strengthening of Adat Institutions program

 ��a kabupaten-level women’s empowerment program

 a district- and village-level governance program

 ���������������������������������������������������������������������������������������������������The Tangguh Project has consistently respected such rights in the Project area and Papua, and will continue to do so.

102 BP Tangguh Integrated Social Program 7 7. Papuan Identity

As described in Chapter 1, in recognition of the existing historical mix in Papua of the indigenous and non-indigenous population, the Project has adopted a common social development strategy that provides a more inclusive, integrated and effective social development framework for the area without losing sight of the special needs of the indigenous majority The aim in so doing, is to help mitigate social jealousy and potential conflict over the receipt of benefits generated by the Project.

As discussed in more detail in Chapter 3, the PSAL recognizes a number of different groups within Papua, both indigenous Papuans and Papuan residents. It identifies two differentadat communities, an adat community (masyarakat adat) and an adat law community (masyarakat hukum adat).

A number of ISP program components specifically target Papuans:

 ���������������������The Strengthening of Adat Institutions program applies only to Papuan adat and adat law communities.

 ��������������������������������������������������������������������The Workforce Recruitment and Industrial Affairs Program has Papuan workforce targets. Who may be considered to be Papuan is a sensitive question given the composition of the Papuan population and the distribution of this population in the Bird’s Head region of Papua. Accordingly the Program has a specific activity that seeks to establish a broad-based consensus of who may be considered to be Papuan and what practical means are available for achieving these targets.

7 .8 Recognition of Customs (Adat) and Traditional Rights (Hak Ulayat)

The Project is actively aware of the importance of customs (adat) and traditional rights (hak ulayat) amongst the clans and tribal groups resident in the vicinity of the Project and integrates such recognition into Project planning and implementation.

As described in Chapter 3, until recently there has been limited recognition of indigenous peoples, adat law and adat rights in Indonesia. Over the last six years, the political changes in Indonesia have led to an increasing awareness of adat and hak ulayat rights although, as discussed in more detail in Chapter 3, the scope for defining such rights within the unitary state of Indonesia is limited. In the case of Papua, the passage of the Papuan Special Autonomy Law in 2001 has established a basis for recognition of adat rights in Papua, however such recognition remains subject to the existing statutory regime.

The Project is actively aware of the importance of traditional customs (adat) and traditional rights (hak ulayat) amongst the clans and tribal groups resident in the vicinity of the Project and integrates such recognition into the Project planning and implementation process. This commitment is demonstrated as follows:

 Support of adat ceremonies: Throughout the life of the Project there have been events that local communities have sought to inaugurate or celebrate with appropriate adat ceremonies. Examples include the start of construction activities for the resettlement-affected villages in Tanah Merah, Saengga and Onar as well as the LNG site; the departure of Tanah Merah residents and their arrival in the new villages of Tanah Merah Baru and Onar Baru. Where Project activities have interfaced with the adat communities, the Project has consulted with the adat communities to identify the need for and nature of

7 Project Positions and Indigenous Peoples’ Issues 103 adat ceremonies and has consistently facilitated the implementation of these ceremonies through logistical and financial support.

 Support of adat institutions: The establishment of adat institutions, typically in the form of Lembaga Masyarakat Adat (LMA), commenced in the 1990s but to date has occurred in a variable manner across Papua. This variability is reflected in the bases for formation of these institutions, with instances of LMAs being established along district administrative lines or along tribal lines. The Project is cognisant of the existence of adat institutions in Kabupaten Teluk Bintuni and is committed to working with these institutions both generally to strengthen and build the capacity of these institutions to represent their constituencies and specifically to resolve adat issues as and when they arise. This commitment is seen in the development of a specific program directed at strengthening of adat institutions in Kabupaten Teluk Bintuni (refer to Section 8.3.3).

 Recognition of the cultural importance of sacred sites: From the outset the Project has been cognizant of the existence of cultural sites of importance to local tribes and clans. The Project has consistently sought to respect these sites, consulted with the relevant tribe and clan representatives to address issues arising in relation to these sites, and where necessary facilitated the resolution of these issues. Section 7.10 describes the Project position, guidelines and practice as it pertains to cultural sites.

 Provision of compensation in relation to hak ulayat: The Project is cognizant of the special relationship that exists between local communities and specific natural resources and the practice of providing compensation to clans having established and recognized traditional rights to marine and forest resources as and when such resources are utilized by third parties. Section 7.11 describes the Project position, guidelines and practice as it pertains to compensation for marine and forest resources.

Such recognition is in line with legislation (where it exists) and reflects the socio-cultural relevance and spirit of adat and hak ulayat amongst communities residing in the vicinity of the Project. Nonetheless, as stated above, legal recognition of adat rights in the Papuan Special Autonomy Law is subject to the existing statutory regime. As such, an apparent adat right can only be recognized if it does not conflict with formal law. This is particularly significant in terms of ownership and control of natural resources. As discussed in more detail in Chapter 3, under the Indonesian Constitution, the land, waters and natural resources contained therein are controlled by the State (dikuasai oleh negara) and must be exploited for the greatest benefit of all people. Only the State has the right to control assets that affect the prosperity of the people, and are therefore regarded as the right of all people. There is therefore a need to reconcile the sense of association that adat communities feel with their natural environment with the realities of the Indonesian legal regime. The implicit conflict between the communities’ perception of their rights, and hence their aspirations, and Indonesian law has and will continue to place the Project in a sensitive position. While the Project is sympathetic to the aspirations of local communities, it cannot support claims that are not in accordance with Indonesian law.

104 BP Tangguh Integrated Social Program 7 .9 Cultural Sites

The Project recognizes and supports the physical and cultural importance of sacred sites in a manner commensurate with the importance given to such sites by the local communities.

While Indonesia has a law governing the registration, ownership and supervision of recognized cultural sites, this formalized system is not frequently applied, particularly in more remote areas such as the Bird’s Head. The Project is committed to recognizing and supporting the physical and cultural importance of sacred sites in a manner commensurate with the importance given to such sites by the local communities.

In the 1999 Agreements (relating to land relinquishment and resettlement) the Project committed itself to respecting all sacred sites and to ensuring, as far as practicable, that they were not disturbed or damaged by construction. The Project has, through consultation, attempted to identify all sacred sites located in the vicinity of the plant site. Having identified the sites, the Project has sought to deal with these in as sensitive a manner as possible with regard to the particular nature of each site. Where possible sites have been left undisturbed and, in specific cases, the design of the plant and facilities has been altered to ensure that the site will not be affected. For example, the Combo Dock was relocated to take account of the sacred Kumapa rocks located offshore in the vicinity of the Project.

The cemeteries at Tanah Merah (now the plant site) illustrate the way in which the consultation process has taken place. In the 1999 Agreements, the community agreed that the cemeteries would be moved. Subsequently, the villagers requested that the cemeteries be allowed to remain in place, and accepted that they would be granted restricted access in accordance with the safety requirements of the construction process. While the Project had concerns about not moving these cemeteries, it recognized the preference of the villagers and has agreed to maintain the cemeteries in their current position for the time being. A����������������������������������������������� detailed agreement has been drawn up with the communities with regard to maintenance and access to these cemeteries. ����������������������If further development of the LNG plant takes place, the cemeteries will be relocated.

In certain cases it has not been practical to leave sacred places untouched, either because of construction needs or because access to such sites is no longer feasible or safe. With the commencement of construction activities, it became apparent that a number of sacred sites belonging to the Sowai clan on the plant site would need to be relocated. The Project engaged in lengthy consultations with the three clans that relinquished land for the Project to determine the appropriate mechanisms for relocation of these sites. As a consequence of these consultations, the Project has supported the construction of new spirit houses for the Sowai and Wayuri clans and subsequent adat ceremonies aimed at calling the spirits to their new locations. Finally, physical relocation of the sites (namely sacred rocks) will occur after consultation with and with coordination with the clans. Not all sacred sites have the same significance or can be treated in the same way. The Sowai sacred sites were located on the LNG footprint and it was essential that they be relocated. The Wayuri sacred sites are located on the LNG site but are not subject to disturbance directly by Project activities. Nevertheless, the Wayuri also elected to build a new spirit house and hold ceremonies calling the spirits to a new location. For both the Sowai and the Wayuri, the new spirit house is located outside the boundaries of the LNG site.

7 Project Positions and Indigenous Peoples’ Issues 105 7 10. Compensation

All compensation will be based on verification, relevant legislation (where it exists) and broad consultation. Payment of compensation will take into account the capacities of the indigenous communities and, where legally possible, the spirit of local customs and adat. Compensation will be formalized in appropriate documents and monies will be paid in an open, transparent and inclusive manner.

Several principles underlie the Project approach to compensation:

 ����������������������������������������������������������������������������All compensation is based on verification and recognition of the claimants’ ownership of, or rights to, the affected resources.

 ����������������������������������������������������������������������������Determination of the appropriate level of compensation is based on existing legislation or, where legislation provides insufficient guidance, by reference to precedent and/or independent valuation so as to avoid any perception of arbitrariness in valuation of rights and provision of compensation.

 ��������������������������������������������������������������������������The Project engages in broad consultation regarding the identity of those entitled to compensation, seeking expressions of broad-based agreement regarding such compensation and entitlement, and carefully identifies those entitled to represent claimants, and accept compensation on their behalf. Compensation is provided in an open and transparent fashion.

 ���������������������������������������������������������������������������Finally the Project is sensitive to concerns regarding injections of large quantities of cash into local communities. As appropriate and based on consultations between the Project, local communities and government, the Project provides combinations of cash and in-kind compensation.

As indicated above, with regard to valuation of resources, the Project seeks to utilize existing legislation, precedent and/or independent valuation as the basis for compensation. Legislation providing guidelines for the valuation of land, specific compensation values for productive crops and trees, and adat payments for felled timber exists and has been and continues to be utilized by the Project.

The adat characteristics of the environment in which the Project is to operate has meant that the impact of compensation needs to be carefully considered. The Project has been concerned about the negative impacts of the injection of too much cash and the limited capacity of the environment to absorb it in a positive way. (The Project has initiated savings schemes to partly deal with this pressure.) For example, in relation to land relinquishment and resettlement, in 1999, when the Project first approached the communities with respect to the acquisition of the land, there was considerable discussion about the way in which the Project was to provide compensation. A series of meetings at that time indicated that the communities wished to be given both cash and in-kind benefits. This compensation package, supported by local government, was thought to be the most effective way of dealing with the complex social and cultural issues that compensation would raise in such an environment.

The Project has continued to address recognition and compensation through a dynamic and responsive process involving various stakeholders, including international advisors. It is hoped that the result of this process, which has involved intensive consultation with affected groups, has created an acceptable, locally owned and appropriate recognition and compensation structure.

106 BP Tangguh Integrated Social Program 7 11. Land Tenure

The Project is committed to the provision of tenure security over new assets.

The Project was faced with the need to acquire land for a significant period of time, in a form that would provide sufficient certainty to support the considerable investment that was going to take place. The Project acquired 3,466 hectares of land for the plant site and the resettlement from three clans, namely the Sowai, Wayuri and Simuna. The clans held traditional communal rights to the land; as such, these rights were undocumented and unregistered. The Project needed to obtain a registered land title, of certain duration. The land acquisition procedure adopted by the Project followed Indonesian requirements, and involved the relinquishment by the clans of their traditional rights. It required the Project to map the boundaries of the traditional land, and to document the agreements relating to the acquisition of such land. The boundaries of the plant site were marked in consultation with and with the cooperation of the respective clans, and the acquisition of these 3,466 hectares was set out in detail in the 1999 Agreement.

The acquisition of the plant site and the grant of registered title has introduced a formality into land ownership in the area that is now influencing the approach of individuals to land ownership. From the outset, the communities expressed the desire to be granted certified land titles for the plots on which their new houses have been constructed, and the Project had sought to satisfy this aspiration. As part of this process, each family has signed a Settlement Agreement, which identifies the plot that they have been allocated, and sets out certain obligations with respect to the house, and the way it is utilized. The agreement confirmed that the Project would process land certificates in the names of both husband and wife. One of the reasons for the Settlement Agreement was to provide households with written confirmation of their entitlement to a plot and a house prior to taking possession. This was particularly important, as the process of certification of land in Indonesia takes some considerable time.

7 12. Formalizing Relationships and Agreements

The Project is committed to a transparent, inclusive consultative approach to working with communities. All formal agreements between the Project and households, communities, clans and tribes are documented and have appropriate witnesses from government, and other relevant parties.

The problem of representation, and therefore participation, in any agreement, has been a significant issue for the communities. Given Papuan history, there has always been a tension between the village administration system imposed by central government and adat authority structures. Section 4.4.2 describes the difficulties that tribes and clans have in the election and consistent recognition of tribal and clan leaders (particularly in ensuring consistent representation), in ensuring wide consultation, and in building awareness, understanding and agreement amongst all tribal and/ or clan members.

The Project has therefore deliberately adopted a process involving consultation and documentation, as a way of achieving inclusion, transparency, and certainty. It has consulted as widely as possible over lengthy periods on many issues. The Project documents all formal agreements between the Project and households, communities, clans and tribes and seeks appropriate witnesses from government, and other relevant parties, such as community elders and religious leaders. Such documentation provides the legal certainty that the Project requires, whilst also formalizing agreements and commitments between stakeholders with the aim to establish a common understanding that is not subject to interpretation or change.

7 Project Positions and Indigenous Peoples’ Issues 107 As an example of this approach, in August 2002, a workshop involving the Saengga village community and various clan members was conducted for a period of three days with large groups of people, including local government. The workshop dealt with many issues, including community access to natural resources, employment prospects with the Project, community development, traditional adat law, human rights and the nature of the infrastructure to be constructed by the Project. The workshop gave the many different participants the opportunity to express their views and to participate in achieving the final agreement.

7 13. Minimizing Migrant Workforce Interactions with Local Communities

The Project is committed to minimizing the interaction between the migrant workforce and the local environment.

In recognition of the typical patterns of economic and social development that occur around major resource extraction projects, the Project has committed itself to a series of actions that will minimize interactions between the LNG workforce and the local environment and reduce the likelihood of uncontrolled social and economic development. These actions include:

 �����������������������������������������������������������������������������development of workforce recruitment procedures that require the recruitment of a local workforce from DAVs and non-local workforce through more distant recruitment centres in the regional urban centres of Fakfak, Sorong and Manokwari; Through implementation of this recruitment procedure, the Project anticipates reducing the incentives for spontaneous in-migration into the Project area

 �������������������������������������������������������������������������the maintenance of a closed camp for the LNG construction workforce; all employees will be brought from their point of employment to the LNG site; whilst on site they will reside in a closed camp with no interaction or limited interaction with local communities; during rest periods or at the end of their employment they will be returned to their point of employment

 ��������������������������������������������������������������������������������maintaining the LNG site as a cashless site, thereby reducing the incentive and likelihood that spontaneous unregulated enterprise develops on the boundaries of the LNG plant site

These policies and guidelines and their implementation are further described in the relevant program descriptions provided in Chapter 8.

7 14. Relations Between Locals and Transmigrants

Section 3.4.7 describes Indonesian transmigration policy and programs. Section 4.2.3.3 identifies transmigration settlements in the vicinity of the Project and describes the relations between local communities and the transmigration villages. Section 5.2.1 demonstrates that both the local and transmigrant communities share similar aspirations and concerns in relation to development and participation and benefit from the development of the Tangguh Project, i.e., health, education, employment, and business.

In response to the integration of the local and transmigrant communities and the commonality of their aspirations and concerns, the Project has adopted a common social development strategy that provides a more inclusive, integrated and effective social development framework for the area without losing sight of the needs of the indigenous majority. In so doing the Project helps mitigate social jealousy and potential conflict over receipt of Project benefits.

108 BP Tangguh Integrated Social Program 7 15. Contractor Compliance

The Project will ensure that all contractors are aware of, understand and abide by Project policies and guidelines.

The Project recognizes that it has a responsibility to ensure that its contractors abide by the commitments it has made. To the greatest extent possible, contractors are obliged to comply with the Project’s commitments, for example in relation to human rights, the environment and workforce management. Where relevant, these conditions are included in contracts.

7 16. Conclusion

The chapter has presented a set of Project positions addressing issues of participation, benefit and mitigation of negative impacts for people residing in the vicinity of the Project. Many of the issues addressed have specific relevance to indigenous people. The Project approaches and positions outlined in this chapter should be seen as a Project commitment to how business is conducted rather than a collection of individual positions. Monitoring and evaluation of Project adherence to and implementation of these approaches and positions should be seen as an ongoing activity where in any one year a review of all Project activities should demonstrate a consistent application and adherence to the approaches and positions outlined in this chapter.

7 Project Positions and Indigenous Peoples’ Issues 109 110 BP Tangguh Integrated Social Program 8. ISP Component Description

8.1 Introduction

As indicated in Chapter 1, there are 14 programs that will be implemented from 2006-2010. This chapter describes these ISP programs. The description follows a standard format including background information explaining the context for the program (including activities implemented to date), program objectives, activities (together with an activity schedule) and a description of the implementation plan.

Table 8.1 lists the programs and provides both reference codes and page numbers where program descriptions can be found. The programs range in geographical scope from Papua-level concerns, to the Bird’s Head, Kabupaten Teluk Bintuni and specific village programs. For a number of programs, the geographical scope includes both the Bird’s Head (particularly the urban centres of Fakfak, Sorong and Manokwari) and Kabupaten Teluk Bintuni. For ease of reference, these programs are categorized as Bird’s Head programs.

Table 8.2 shows how the ISP programs address the Project impacts identified in Chapter 6.

8.2 Governance and Revenue Management

8.2.1 Context

The Special Autonomy Law for Papua, enacted by the Indonesian government in 2001, provides for the sharing of government revenues across natural resource sectors including oil and gas, mining and forestry. In relation to oil and gas, the Special Autonomy Law provides for the sharing of after-tax revenues from gas production occurring within Papua between the central and Papuan governments. Specifically the Law specifies a 70:30 split between the province and the central government for 25 years after which revenues will be shared 50:50 between the central government and the province. Accordingly, following completion of cost-recovery and debt repayment, it is anticipated that

 At this time considerable political and legal uncertainty regarding the implementation of the PSAL persists. Consequently the revenue implications of the PSAL are also uncertain.

8 ISP Component Description 111 Table 8.1 List of ISP Programs

Geographical Ref Program Page Ref Focus Papua P1 Governance and Revenue Management 111 BH1 Civil Society Strengthening and Strengthening of Adat Institutions 116 BH2 Bird's Head Business Empowerment 118 Bird’s Head BH3 Workforce and Industrial Relations 121 BH4 Mitigation of In-migration and Adverse Induced Impacts 123 Kabupaten Teluk K1 Regency and Village Governance 132 Bintuni K2 Integrated Community-based Security 135 K3 Health 137 K4 Education 143 K5 Vocational Training 149 K6 Women’s Empowerment 151 K7 Microfinance and Microenterprise 155 Direct Community DCA1 DAV Community Action Program/Community Development 159 Assistance DCA2 Land Acquisition and Resettlement Action Plan (LARAP) 161

Table 8.2 Impacts Addressed by ISP Programs

Issue and/or PROGRAM No Chapter Ref Impact Ref Name 1 Development Ch 3, 4 K1 Regency and Village Governance K3 Health K4 Education K5 Vocational Training K6 Women’s Empowerment K7 Microfinance and Microenterprise 2 Revenue Ch 2, 3, 6, 7 P1 Governance and Revenue Management (including Bird's Head government capacity-building) BH1 Civil Society Strengthening and Strengthening of Adat Institutions 3 Employment Ch 2, 5, 6, 7 BH3 Workforce and Industrial Relations K5 Vocational Training K7 Microfinance and Microenterprise 4 Business Ch 2, 4, 5, 6 BH2 Bird's Head Business Empowerment K7 Microfinance and Microenterprise 5 In-migration and Ch 2-7 BH4 Mitigation of In-migration and Adverse Induced Impacts Adverse Induced BH3 Workforce and Industrial Relations Impacts BH1 Civil Society Strengthening and Strengthening of Adat Institutions K2 Integrated Community-based Security 6 Directly Affected Ch 6 DCA1 Community Action Program/Community Development (DAVs) Villages 7 Involuntary Ch 6 DCA2 Land Acquisition and Resettlement Action Plan (LARAP) Resettlement

112 BP Tangguh Integrated Social Program Papua will receive its share of the Government of Indonesia Tangguh gas profit, thereby potentially increasing the province’s income. How these revenues will be managed to benefit the people of Papua is a critical challenge. It is recognized that the primary responsibility for the distribution and use of revenues lies with the national and provincial governments and that as contractor to the Government of Indonesia, BP and the Tangguh Project cannot act in a governmental capacity. Nonetheless the Project will do the following for various stakeholders: (a) promote awareness of the mechanisms for revenue distribution and management as promulgated in Indonesian Laws (including the Papuan Special Autonomy Law); (b) promote stakeholder awareness and ownership of the GOI Diversified Growth Strategy, particularly its focus on using revenue derived from one industry to promote the social and economic development of a broader area, and (c) supporting capacity-building programs to strengthen provincial and regency governments strategic planning and budget management.

8.2.2 Objectives

1 Improved stakeholder awareness of revenue management (vis a vis the Papuan Special Autonomy Law) and the Bird’s Head Diversified Growth Strategy (DGS)

2 Improved government capacity to manage revenue streams

8.2.3 Activities

As outlined below, this program comprises three components: (i) improve stakeholder awareness and understanding of the provisions of Indonesian laws (including the Papuan Special Autonomy Law) pertaining to revenue allocation and management, (ii) government capacity-building, includi��ng (a) the Bird’s Head Diversified Growth Strategy (DGS), and (b) strengthening of government capacity to manage the revenue flows, working on strategic planning and budget management and also on key sectors (health and education). The Project will also promote the participation of the World Bank, ADB and other multilateral donors.

I Building stakeholder awareness of revenue management and allocation A. Study of fiscal decentralization and the Special Autonomy Law: As a first step in building stakeholder awareness, the Project will commission a background paper describing the finance law, fiscal decentralization and the provisions of the Papuan Special Autonomy Law pertaining to revenue management.

B. Building stakeholder awareness: The Project will develop a communications strategy to build stakeholder awareness. This strategy will target central (Ministry of Finance, Ministry of Home Affairs, BAPPENAS, etc.), provincial and regency governments, civil society, and the communities of Teluk Bintuni. Strategy content and specific order of socialization is as follows:

i. ���������������������������������������������������������Assist stakeholders to be aware of the primary roles and responsibilities of central and provincial government and the principles of revenue-sharing (i.e., stakeholders are made aware of process)

8 ISP Component Description 113 ii. ���Ass�i�s�t �s��ta�k�����������eholders to �b���e a�w�����are of ���the b��������uilding b�����lock �p�����rinci�p���les upon which the Project is predicated. Key points include: (a) the primary long-term benefit that the Projectw ill bring to the Bird’s Head of Papua and the province as a whole is increased revenue flow, the management of which is a government responsibility (with some guidelines provided in the Papuan Special Autonomy Law); (b) most Project work at the community and kabupaten level is based upon an assumption that the government will increasingly assume responsibility for ongoing implementation of successful approaches as revenue streams come on-board; (c) most Project work at the community and kabupaten level is based upon an assumption that the government will utilize its own funds to replicate and expand successful approaches as revenue streams come on board.

iii. ���Ass�i�s�t �s��ta�k�����������eholders to �b���e a�w�����are of ���the s��u��bs���������tantive i��ss������������ues relating to the Papuan Special Autonomy Law and revenue management. For example: (a) revenue allocation and use, and (b) the capacity of newly-formed regency governments to manage revenue streams, especially their ability to develop and implement strategic plans and to be accountable to their constituencies for budget utilization.

II Support government capacity-building programs The Project will support capacity-building programs through three efforts:

A. Bird’s Head government capacity-building: The Project will support broad- based capacity-building activities for local government throughout the Bird’s Head. This will be achieved through agreements and partnerships with development agencies. For example a Global Development Alliance agreement (GDA) may be developed with USAID, providing for Project support of the USAID Local Governance Support Program (LGSP) in the Bird’s Head.

B Diversified Growth Strategy (DGS): The GOI has adopted a Diversified Growth Strategy for the Bird’s Head of Papua. Both the UNDP Capacity 2015 program and Tangguh/BP are supporting the strategy. The DGS aims to: (a) support development of regional development plans for the Bird’s Head; (b) promote development of improved regulations and regulatory processes to manage change associated with large-scale investment projects; (c) support business capacity-building, and (d) promote enhanced partnership among government, civil society and business. The Tangguh Project supports the DGS through: (a) providing direct financial support to the UNDP Capacity 2015 program, and (b) implementation of various programs under the rubric of the Tangguh DGS commitments (i.e., revenue management, capacity-building in governance (as described above), civil society strengthening, business empowerment, and mitigation of in- migration and Project-induced impacts).

C Kabupaten government capacity-building: The Project is supporting a focused village-, district- and regency-level government capacity- strengthening project in Kabupaten Teluk Bintuni. The program, which is being implemented through NGO contractors such as IIP and YIPD/CLGI,

114 BP Tangguh Integrated Social Program aims to strengthen government capacity in strategic planning, budgeting, local government administration, etc. This program is described in Section 8.9.

8.2.4 Implementation

The primary responsibility for implementation of this program lies with Tangguh ISP. At the central government level, ISP will work with the BP Communications and Government and External Affairs units to implement the program. At the provincial and Bird’s Head level the program manager will work with the ISP �����������������������Government and External �Aff�����������������airs Unit �����to im�p����������lement the �p��������������������rogram. Coordination with various units (i.e., communications) and with related programs such as the UNDP Capacity 2015 program and governance programs implemented at the Bird’s Head and regency levels is essential.

The governance component of this program will be outsourced. The Tangguh ISP has been supporting the UNDP Capacity 2015 program since 2005 and will seek to contract an external party to implement a governance capacity-building program across the Bird’s Head. The program will commence in the 3rd quarter of 2006.

Table 8.3 provides an activity schedule describing implementation plans.

Table 8.3 Activity Schedule for Governance and Revenue Management

Year Activity 2005 2006 2007 2008 2009 2010

building stakeholder awareness

bkgrd paper on finance law, fiscal decentralization, PSAL

Jakarta-level consultations

provincial level consultations

Bird’s Head consultations

strengthening government capacity

strengthening capacity of regency govt in Bird’s Head

Diversified Growth Strategy UNDP UNDP UNDP

strengthening capacity of Kab Teluk Bintuni govt see kabupaten-level program description

8 ISP Component Description 115 8.3 Civil Society Strengthening

8.3.1 Introduction

The program comprises two sub-components, namely: (i) strengthening of civil society organizations in the Bird’s Head region of Papua and (ii) strengthening of adat institutions in Kabupaten Teluk Bintuni.

8.3.2 Strengthening of Civil Society in the Bird’s Head Region of Papua

8.3.2.1 Context

The Project supported implementation of a Needs Assessment for Strengthening Civil Society survey in 2004. USAID supported the Civil Society Strengthening Project (CSSP) for Bird’s Head CSOs from 2002 to 2004. The CSSP focused on basic capacity-building of civil society organizations, and implemented a wide range of capacity-building exercises (strategic planning, financial management skills, human rights and advocacy) with over 20 Bird’s Head CSOs. At the conclusion of the CSSP, the Project provided recommendations regarding ongoing CSO capacity-building needs to the Tangguh Project. As an initial step to supporting CSO capacity-building in the wake of the CSSP, the Project supported implementation of a Bird’s Head Lessons Learned – Next Steps NGO Workshop in January 2005.

Taken together, these activities point to the following:

 �F�������������������������������������������������������������������������������urther strengthening of Bird’s Head civil society organizations’ (CSO) capacity is required in various areas including computer skills, English language training, program development, proposal writing, human and organizational development financial management, advocacy, legal drafting, performance-based budgeting, anti-corruption, media and development communications, gender, conflict resolution, social analyzes, facilitation skills, etc.

 ����������������������������������������������������������������������CSOs have limited access to basic resources including communications, computers, literature, etc., which limits their ability to access information, develop skills, develop networks and compete for work

On the basis of past activities and recommendations, the Project will support a civil society strengthening program aimed at addressing these concerns.

8.3.2.2 Objectives

Increased capacity of civil society to represent their constituents and address their needs

8.3.2.3 Activities

I Define ISP Policy: The ISP has defined a commitment to strengthening local CSO capacity. Specifically where ISP activities are outsourced, ISP will seek to contract Bird’s Head and Papuan NGOs. Where there is inadequate local capacity, ISP will develop TORs that include local CSOs and appropriate capacity-building through training, on-the-job learning, alignment with mentors, etc. The ISP policy will be shared with Bird’s Head CSOs to ensure their buy-in and support.

116 BP Tangguh Integrated Social Program II Resource Analysis

A Bird’s Head CSO Meeting to identify resource constraints and mechanisms to address these constraints

B Develop Resource Profile (human and physical resources) for Bird’s Head CSOs (Manokwari, Sorong, Fakfak)

III Supporting CSO Activities: The Tangguh ISP will support Capacity- building and activities for Bird’s Head CSOs. ISP support will be channeled through an ISP subcontractor or existing program or institution operating in the Bird’s Head.

A Resource Centre: The Project will support the establishment of a CSO resource centre in the Bird’s Head peninsula. The centre will serve as: (i) the base for management of the CSO support program; (ii) the training centre for selected training programs, and (iii) a library of development literature.

B Training: The Project will provide US$50,000 per annum to support training to improve human resource capacity. Training may include improved computer skills, English language training, program development, proposal writing, financial management, advocacy, legal drafting, performance based budgeting, anti-corruption, media and development communications, gender, conflict resolution, social analyzes, facilitation skills, etc

C Grants: The Project will allocate $50,000/annum as a grant fund available to CSOs to support local initiatives. The fund will be managed by the manager of the Resource Centre. The Project will define key sectors of interest (i.e., to support key social development issues that the Project is working on) and provide a format to be used for submission of proposals.

D Networking: The resource centre will facilitate opportunities for networking. As an example, it will sponsor annual workshops to provide participants and stakeholders with opportunities for building networks and improving coordination, providing progress reports and allowing review of activities with recommendations for ongoing work, sharing best-practice, etc.

8.3.2.4 Implementation

Tangguh ISP aims to outsource implementation of this program. Several multilateral donor programs have tentative plans for including a civil society strengthening component. Similarly, there are other BP initiatives with which this program could coordinate. Irrespective, the objective will be to outsource program management and implementation and ensure synergies with planned activities so as to maximize sustainable benefits. Table 8.4 provides an activity schedule for the civil society strengthening program. The program should commence in the �3rd quarter of 2006.

8 ISP Component Description 117 Table 8 .4 Activity Schedule for Civil Society Strengthening Program Year Activity 2005 2006 2007 2008 2009 2010

definition and socialization of ISP CSO policy

resource analysis

Bird’s Head NGO coordination meetings

HR and physical resource profile

supporting CSO activities

resource centre

training

grants

networking

Papuan NGO website

annual workshop

8 .3 .3 Strengthening Adat Institutions in Kabupaten Teluk Bintuni

8 .3 .3 1. Context

This component specifically addresses indigenous people resident in the vicinity of the Project. In its broadest context, this program recognizes the historical context of development and natural resource extraction in the Bay and the role of tribal and clan customs (adat) and resource tenure (hak ulayat) as expressed in the Special Autonomy Law. Specifically, the program is developed in recognition of: (i) the indigenous Papuan tribes unique relations with their natural resources and hence the need for industry to recognize, respect and, where appropriate, provide compensation for adat and hak ulayat and (ii) the accelerated cultural change that major projects inevitably induce.

 In the process of extracting natural resources, historically there have been experiences in Indonesia that have led to a breakdown of the traditional leadership system and monetization of adat and hak ulayat, leading to increased conflict within and between tribes (particularly regarding resource ownership). This has resulted in a loss of community trust and cohesion, and environmental degradation (in mechanisms contrary to what the tribal adat would allow). With regard to leadership, experience suggests that the activities of companies in Papua have led to the promotion of multiple leaders, often through a practice of informal, ad hoc “compensation” to such leaders, thereby creating uncertainty and conflict regarding tribal leadership and representation. In the past, certain companies have not engaged in a sufficiently extensive consultation process with tribes and clans to resolve adat and hak ulayat issues. Specifically, some companies promoted and utilized a geographical basis to identify ownership (i.e., proximity of residence) with the hak ulayat basis for resource ownership laid over this analysis. The field reality emphasizes the historical and genealogical basis for resource ownership over and above geography.

 Evolution of adat and hak ulayat systems: Tribal adat and hak ulayat systems have evolved over a long period of time and continue to change. By increasing the rate of change, Projects such as Tangguh inevitably require the systems to respond to new concerns and issues thereby placing pressure on an informal

118 BP Tangguh Integrated Social Program system. As described above, resource extraction companies have encouraged a monetization of adat and hak ulayat and as such have adversely affected leadership and management, specifically the capacity of tribal systems to respond to change in a sustainable manner that promotes improved welfare of the entire clan/tribe (recognizing that short-term monetary gains may not be in the best interest of the tribe).

 ����������Currently adat institutions (Lembaga Masyarakat Adat (LMA)) exist at the village, district and regency level. These institutions appear to be organized on the basis of government administrative boundaries and tend to serve as facilitators for resolution of adat and hak ulayat issues rather than seeking to be representative of clans and tribes. Hence the LMA may represent multiple tribes occurring within the one administrative area. Further the LMA do not necessarily represent the entire tribe. Finally as umbrella organizations facilitating adat and hak ulayat issues there are instance where a specific LMA is neither strongly representative of nor supported by tribes and clans.

The Papuan Special Autonomy Law (2001) has resulted in the formal recognition of adat and hak ulayat systems and elevated the status and role of adat in Papua. However to date no implementing regulations have been developed and considerable uncertainty exists with respect to the representation, structure, leadership, roles and responsibility of adat institutions. This inactivity is further complicated by the uncertainty of proposed political boundaries that are likely to further divide the current province of Papua.

Recognizing all the challenges and uncertainties described above, the Tangguh Project has developed a program seeking to support meeting the challenges to strengthening adat institutions. Specifically while this program aims to ensure that adat systems will be able to respond to the changes that the Tangguh Project induces it also brings together the historical influences on adat systems and the new recognition and status of adat as defined by the Papuan Special Autonomy Law. In this way the program will directly contribute to the broader environment in which adat systems are evolving.

8 .3 .3 .2 Objectives

1 Improved definition and understanding of the roles and responsibilities ofadat institutions in relation to their tribal and clan constituencies, government and non-government bodies and other private-sector companies

2 Improved representativeness of adat institutions amongst their tribal and clan constituents

3 Improved capacity of adat institutions to manage their responsibilities including activities that strengthen culture, adat and hak ulayat

8 .3 .2 .3 Activities

I Phase I: Preparation Several preparatory steps are required:

A Review legal basis for adat institutions

B Regency-level workshop to socialize program: The Project will implement a regency level workshop to promote awareness, participation and support for the program. The workshop will start with an overview of the current state of adat and adat institutions in the evolving political situation and will be followed by socialization of the proposed program. The workshop will bring together representatives of the seven tribes, the leaders of the existing adat institutions, and government.

8 ISP Component Description 119 C Assessment of adat institutions within the kabupaten: As a basis for program development, the Project will support a baseline study of adat institutions existing at the village, district and regency level. The study will consider the extent to which the existing institutions represent the constituency, the institutional capacity, and the activities of the institution. Background studies of programs that have successfully supported the strengthening of adat institutions in Papua will be collated.

II Phase II: Institutional capacity-building of clan leaders and LMA The program will target the seven tribes occurring in the regency. It will be implemented progressively with an initial focus on the tribes most proximate to the Project (i.e., the Sebyar, Sumuri and the Irarutu). The Project will contract a qualified legitimate NGO with experience in capacity-building of adat institutions to: (i) implement specific training programs (e.g., leadership, conflict resolution, etc.), (ii) mentor ongoing activities, and (iii) facilitate cross-visits to adat communities in Papua. The results of these activities will be made available to Tangguh for broader dissemination and learning within the company as well as externally.

III Phase III: Implementing programs – culture, adat and hak ulayat The Project will provide grants to adat institutions as a means of supporting the implementation of programs addressing culture, adat and hak ulayat. Programs that may be developed and supported include: (i) documenting tribal and clan genealogies; (ii) defining hak ulayat through resource mapping; (iii) documenting customary law, and (iv) documenting culture (music, mythology).

8 .3 .3 .4 Implementation

Tangguh ISP will retain primary management responsibility for this program. Implementation of the majority of activities will occur through qualified NGOs. Table 8.5 presents an activity schedule for this program. Program activities will commence in 2nd quarter 2006.

Table 8 .5 Activity Schedule for Strengthening of Adat Institutions in Kabupaten Teluk Bintuni

Year Activity 2005 2006 2007 2008 2009 2010

preparation

review legal basis for adat institutions

kabupaten-level strategy/needs assessment workshop

assessment of adat institutions

institutional capacity-building

tribal leader and adat meetings

training/capacity-building programs

cross-visits

program implementation

implementing tribal and clan programs

building public awareness

120 BP Tangguh Integrated Social Program 8 .4 Bird’s Head Business Empowerment

8 .4 1. Context

The Tangguh Project is supporting a program of small and medium business development that has the dual goals of: (a) maximizing opportunities for Bird’s Head business to meet the procurement and services requirements of Tangguh LNG construction and operations, and (b) developing the capacity of the businesses to participate in and benefit from the longer-term Project-induced economic growth that occurs throughout the Bird’s Head independent of the Tangguh Project.

In 2003 and 2004 the Project conducted a Papuan Companies Empowerment Gap Analysis Study focusing on the business environment of the major urban centres in the Bird’s Head (i.e., Fakfak, Sorong and Manokwari). These studies reported substantial shortcomings in the capacity of Papuan businesses and thereby pointed to the conclusion that, without specific targeted capacity- building initiatives, most Bird’s head businesses will struggle to meet the requirements of, and hence be able to compete for, Project-related contracts. In response to these studies, the Project has developed a Bird’s Head Business Empowerment Program. This program complements the longer-term GOI-owned Diversified Growth Strategy for the Bird’s Head being implemented as a GOI-UNDP-BP program.

8 .4 .2 Objectives

1 Improved capacity of Bird’s Head business to compete for business opportunities associated with construction and operation of LNG plant (i.e., supply of goods and services)

2 To institutionalize an approach to business empowerment and capacity-building in the Bird’s Head region of Papua (enabling local businesses to take advantage of opportunities that arise as a result of the economic development of the Bird’s Head)

8 .4 .3 Activities

The business empowerment program comprises two sets of activities – the first, to be implemented from 2005-2008 focuses on developing the capacity of businesses to bid for work related to construction and operation of Tangguh. The second, to be implemented from 2008-2010, focuses on institutionalization of the business empowerment approach that would improve the capacity of existing and newly formed businesses to develop and compete for contracts as economic growth occurs and new industries develop.

I Building oil, gas and mining (OGM) - business linkages The first phase of the business empowerment program will be implemented in partnership with the IFC. The IFC is currently implementing the Program for Eastern Indonesia Small and Medium Enterprise Development (PENSA) to provide training and expert assistance to small and medium enterprises in eastern Indonesia. PENSA aims to support small-medium enterprises (SMEs) by increasing access to finance; improving business performance, and strengthening the enabling environment for business. One component of PENSA focuses on small and medium enterprise linkages to oil, gas and mining (OGM) companies.

8 ISP Component Description 121 The long-term goal of PENSA’s OGM program is to utilize the OGM presence as a catalyst for increasing the SME business and technical levels thereby establishing a solid base for sustained economic growth beyond the operational life of the OGM partner. The program focuses on developing demand-based supply chain linkages between local enterprises and oil, gas and mining companies. Once IFC reaches agreement with a company, it assumes primary responsibility (through contractors) over a one- to three-year period for a series of activities typically involving:

A Assessing contractors (and their subcontractors) procurement systems (policies, systems, products, partners, quantities, quality needs and specification) and tendering process (bid announcement, bid selection, contract award, post-award, supplier warehousing receipt systems, contract monitoring systems). Based on the assessment recommendations for adapting systems to make them more SME-friendly may be forthcoming. Care will be taken to ensure that these adjustments do not unduly impact cost, quality and efficiency standards.

B Assessing demand (construction, operations) – An analysis of OGM demands will allow identification of demands, what items can be prioritized for local procurement and requirements for facilitating local SME participation in meeting these demands.

C Identifying and assessing capacity of potential suppliers – identification and capacity assessment of local SMEs will allow the program to determine priority needs and plan training/mentoring activities.

D Training and mentoring – Based on needs assessment, the program will develop a customized training/mentoring curriculum for existing and potential SME suppliers and contractors. Topics include: (i) general business skills – business planning, business ethics, financial planning and management, cash flow management, production cost analysis, marketing, HR management, procurement/tendering processes and procedures, QA/QC and safety, health and environmental management; (ii) notional technical skills. The emphasis of the training/mentoring program will be on promoting business and technical professionalism whilst managing SME expectations.

Key indicators of success include: (i) increase in local procurement (value and quantity); (ii) increase in SME profits; (iii) end-user satisfaction with SME-supplied goods and services; (iv) application of new and/or adjusted management systems on both the supply and demand side, and (v) the ability of the SME to transition to servicing sector needs.

II Sustaining capacity-building for sustainable business development The second phase of the program, to be implemented from 2008-2010, focuses on institutionalization of the business empowerment approach such that existing and newly formed businesses can develop and compete for contracts as economic growth occurs and new industries develop. At this stage it is envisaged that institutionalization will involve working and strengthening the capacity of the local Chambers of Commerce and ensuring that all stakeholders recognize and support the central role of the Chambers of Commerce in

122 BP Tangguh Integrated Social Program promoting business development. The approach and activities will rely on the results of Phase I and consultations with local stakeholders, UNDP and IFC.

8 .4 .4 Implementation

The first phase of the program will be implemented by IFC through a three-party MOU involving the IFC, UNDP Capacity 2015 and Tangguh ISP. Specific plans for institutionalization of this initiative are not yet developed. Table 8.6 presents an activity schedule for this program. The MOU was signed in December 2005 and program implementation will commence in 1st quarter 2006.

Table 8 6. Activity Schedule for Bird’s Head Business Empowerment Program

Year Activity 2003 2004 2005 2006 2007 2008 2009 2010

Project-Papuan business linkages

Papuan Business Gap Analysis Study I

Papuan Business Gap Analysis Study II

project implementation (IFC-PENSA)

promoting capacity to participate in Project-induced economic growth

institutionalization of approach

8 .5 Management of Workforce Recruitment and Industrial Affairs

8 .5 1. Context

Project-related employment opportunities are varied and include resettlement-related construction, LNG plant construction, LNG plant operations, LNG construction and operation support, security, etc. The primary sources of employment are: (i) resettlement-related village construction, and (ii) LNG construction. The Project has developed workforce policies, guidelines and commitments to ensure equitable employment opportunities are offered to various stakeholders. These requirements are included in all contractors (and their subcontractors) contracts thereby binding them to develop and implement workforce and industrial affairs management systems that meet or exceed the Tangguh Project requirements.

Resettlement-related construction employment opportunities were preferentially allocated to the resettlement-affected communities, on the basis that it was best to have future residents working on the construction of their own houses and facilities.

Figure 8.1 (page 124) presents LNG construction-related employment requirements. Workforce requirements will increase from 1,000 labourers in the first year of construction to a peak of over 5,800 labourers in the third year of the Project. Labour force requirements include positions for non- skilled, semi-skilled and skilled personnel.

The Project workforce management commitments, policies, and guidelines are outlined in Appendix B of the Project AMDAL. These are summarized as follows:

8 ISP Component Description 123 Figure 8.1 Project LNG Construction Workforce Requirements

Table 8 7. Construction of Workforce Targets (% of total person hours)

Directly Bird’s Head remainder of nationals or Level of skill Affected Papua foreigners Villages unskilled craft 20 25 55 0 semi-skilled craft 10 20 63 7 skilled craft 0 2 10 88 managerial/supervisory 0 1 5 94

Table 8 .8 Localization Targets for Operation Phase Workforce1

total 2005 2007 2010 2015 2025 Level of skill workers L P L P L P L P L P unskilled craft 42 42 - 42 - 42 - 42 - 42 - low-skilled 50 25 25 35 15 45 5 50 - 50 - semi-skilled 184 3 50 15 75 20 125 46 138 58 126 skilled 183 - 15 - 25 2 75 18 125 58 125 supervisory 60 2 4 10 20 10 50

1 ‘L’ refers to people from the DAVs; ‘P’ refers to people from other parts of Papua

124 BP Tangguh Integrated Social Program  �����������������������������������������������������������������������The Project commits to maximize the Papuan content of the workforce at all levels during the lifetime of the Project. The Project’s workforce targets (Table 8.7, page 124) are aimed at promoting the participation of local, Papuan and other Indonesian people in the Project workforce. (Note that local refers to indigenous people living in the DAVs; Papuan refers to people living elsewhere in the province of Papua, and Indonesian refers to people who derive from elsewhere in Indonesia). This means, for example, that during the construction phase of the Project, 100% of all unskilled craft positions must be filled by people from Papua, and at least 20% by people from the DAVs. Local workforce commitments have been defined through a commitment to offer one position to every DAV household. These positions are only available to village residents holding proof of residency and are not transferable. No commitments regarding the type and duration of employment have been made.

 ���������������������������������������������������������������������������Table 8.8 (page 124) sets out the Tangguh LNG Project operations workforce composition targets. The table shows the progressive advancement of local and other Papuan employees to more highly skilled jobs as well as the progressive increase in Papuan content of the workforce. Specifically, it is expected that at commencement of the operations phase, local people from the DAVs will fill all of the 42 unskilled positions, 25 of the 50 low-skilled positions, and three of the skilled positions. Workers from other parts of Papua Province are expected to fill 92 positions at the commencement of operations. Hence 31% of jobs in the initial operations workforce will be performed by Papuans. The Papuan workforce is expected to increase to 62% after 10 years, and 85% after 20 years (including 10 management positions filled by people from the DAVs). Training of local people to fill key positions in the operations workforce has already commenced (as described in the section describing the ISP’s vocational training program).

 T�������������������������������������������������������������������he Project workforce management strategy should safeguard the local communities from an influx of migrants seeking employment. Other than the DAV residents, the Tangguh LNG workforce will be recruited through official hiring points in Fakfak, Bintuni, Manokwari and Sorong. As indicated above, with regard to DAV recruitment, to be eligible for employment DAV residents require local identity cards as proof of local residency. Although the contractor retains the right and responsibility to offer employment, the Project will be responsible for identification of potential DAV employees;

 ���������������������������������������������������������������������������������Prior to the start of construction, the Project will establish a Code of Conduct (CoC) for the Tangguh LNG workforce.

 ������������������������������������������������������������������������������The Project will establish maximum working hours and appropriate rest periods with pay for all workers that are in line with existing Indonesian legislation.

 Contractors’ workers will be remunerated consistently for equal work.

 Contractors will ensure that no individuals under age of 18 are employed.

8 ISP Component Description 125 8 .5 .2 Objectives

1 Existence of a transparent, equitable, workforce recruitment and management system in line with Project AMDAL commitments

2 Ensure participation of local, Papuan and Indonesian people on the workforce in line with Project AMDAL commitments

3 Ensure that all workforce recruitment and industrial relation practices comply with current Indonesian regulations

4 Promote cultural harmony and secure relations within the Project workforce and between the Project, the workforce, and the Bay- and Bird’s Head communities

8 .5 .3 Activities

To achieve these aims the Workforce Recruitment and Industrial Affairs Management Program will:

I Define implementation guidelines for Project policy: The Project needs to develop guidelines to implement Project workforce policies including defining Papuan content, recruitment quotas between growth centres, etc. Where current legislation does not allow for ready application of the policies or is subject to manipulation, the program must seek to promote legislative change as appropriate. Once guidelines are developed, ensure that contractor (and subcontractors) and the Department of Labour apply said policies.

II Ensure compliance with Indonesian legislation: Together with the Department of Manpower and LNG construction contractor (and its subcontractors) the Project must ensure compliance with legislation;

III Develop and implement workforce recruitment systems: Together with the Department of Manpower and the contractor (and its subcontractors) the Project will develop and implement workforce recruitment systems for (i) the DAV population and (ii) all other recruitment occurring through the growth centres of Fakfak, Sorong, Bintuni and Manokwari. These systems will reflect and be in accordance with Project commitments as defined in the AMDAL.

IV Ensure compliance with workforce management: Together with the contractor (and its subcontractors) the Project will design and ensure compliance with: (a) salary payment systems that maintain the LNG construction site as a cashless operating environment; (b) staff rotation and movement plans that ensure non-DAV employees are returned to their point of employment and thereby ensure that the LNG construction site is operated as a closed camp; (c) developing human resource capacity to manage Workforce and Industrial Relations on the LNG construction site.

V Implement monitoring and evaluation: Devise and implement an independent monitoring and evaluation mechanism to ensure that the contractor (and subcontractors) is complying with Project commitments, policies, and guidelines on workforce management and industrial relations. As necessary inform Project Management of identified shortcomings and recommend actions to enforce compliance.

126 BP Tangguh Integrated Social Program 8 .5 .4 Implementation

The Tangguh Project retains primary responsibility for the management of the Workforce Recruitment and Industrial Affairs program. The program manager will work in close coordination with the main contractors and their subcontractors as well as with relevant government authorities in Kabupaten Teluk Bintuni and the growth centres in the Bird’s Head of Papua. Table 8.9 presents an activity schedule for this program.

Table 8 .9 Activity Schedule for Management of Workforce Recruitment and Industrial Affairs

Year Activity 2005 2006 2007 2008 2009 2010

define implementation guidelines

compliance with Indonesian legislation

design and application of workforce recruitment systems

workforce management

monitoring and Evaluation

8 6. Mitigation of In-migration and Adverse Induced Impacts

8 6. 1. Context

From the outset ,the Tangguh Project has been acutely aware of the risk of spontaneous in-migration, with experiences from major resource extraction projects around Indonesia amply demonstrating the honey-pot syndrome that typically draws migrants to potential employment, promotes in situ development of new settlements, and brings a host of induced impacts including increased pressure on basic infrastructure and services, increased competition for training and employment, increased crime and violence, increased prostitution and alcohol abuse, problems with STDs and other diseases, ethnic tension, erosion of cultural (adat) institutions, and environmental degradation. Data on project-induced in-migration on three major resource projects in Indonesia is indicative of the potential scale of in-migration to Teluk Bintuni:

 ���������������������������������������������������������������������������Timika, Irian Jaya: Since the start of operations there has been a 40-fold increase in the population from 3,000 to over 120,000.

 ��������������������������������������������������������������������������Bontang, East Kalimantan: Construction and operation of the LNG plant has seen a 28-fold increase in population.

 �������������������������������������������������������������������������Newmont, Sumbawa: The population in the vicinity of the mine has doubled since the start of operations.

In an effort to pro-actively address this issue, the Project included the mitigation of in-migration into Kabupaten Teluk Bintuni as a key component of the Diversified Growth Strategy. Early efforts at mitigating in-migration have focused on the development of appropriate workforce recruitment and management policies. These included: (i) all non-DAV recruitment is to occur through the regional centres of Fakfak, Sorong and Manokwari; (ii) all employees are to be returned to the points of hire for rest periods as well as at the end of their period of employment; (iii) all wages will be paid at the point of hire, and (iv) whilst employed, workers will be accommodated on site and a closed camp policy minimizing interaction with the local population will be enforced.

8 ISP Component Description 127 Nonetheless, field experience demonstrates that in-migration is a reality with over 200 migrant workers having taken up residence in each of the resettlement-affected villages of Tanah Merah and Saengga and early signs of in-migration to Babo and Bintuni. Furthermore, while the establishment of recruitment centres in the major urban towns of the Bird’s Head may mitigate in-migration to Kabupaten Teluk Bintuni, the induced impacts of the in-migration to these urban centres is also a concern. Accordingly both in-migration and its associated induced impacts remain a real concern for the Project. To this end a specific program for the mitigation of in-migration and induced impacts has been developed.

8 6. .2 Objectives

1 Improved Project and GOI policies and guidelines that reduce spontaneous in- migration to the Project area

2 Improved awareness amongst GOI, civil society and the community of the potential scale of in-migration, the nature and scale of project-induced impacts, and mechanisms available for management of impacts

3 Improved capacity in government (village, kecamatan and kabupaten) and civil society to manage, monitor and respond to spontaneous in-migration and induced impacts

8 6. .3 Activities

I General

A Study of the national and provincial policy and legislation pertaining to internal migration within Indonesia: An understanding of policy and legislation is a key input into assessing the formal basis for advocating strategies to mitigate in-migration.

B Assess key stakeholder views on in-migration (including provincial and regency governments, adat and religious bodies and civil society): The ongoing establishment of new provinces and regencies is in itself a stimulus of in-migration as the development stemming from these changes is a potential source of employment. Furthermore various forces may lead to newly established governments encouraging in-migration. Accordingly at the outset the Project should assess the nature of in-migration occurring in the regional centres and collate stakeholder positions and views on in- migration.

C Identifying management responsibility and assessing capacity: Efforts to manage and monitor in-migration will require identification of the key departments involved in managing population, migration and employment and an assessment of their capacity.

D Development of media: The Project will develop various media to support awareness-building. Existing media channels (newspaper, radio and television) will be used to promote awareness.

128 BP Tangguh Integrated Social Program II Regional Growth Centres (Fakfak, Sorong, Manokwari)

A Building awareness of potential scale and impact of project-induced in‑migration

i �������������������������������������������������������������������Workshops: The Project will facilitate annual workshops in each of the regional centres to build awareness of: (i) the potential for Project- induced in-migration; (ii) potential induced impacts of in-migration; (iii) identification of management strategies, responsibilities and capacity to manage in-migration, and (iv) the Project concerns regarding in- migration an induced change and its commitment to support activities aimed at mitigating in-migration into Project area. These workshops will involve key government departments (planning, population, health, education, police) as well as adat and religious leaders and NGOs.

ii �����������������������������������������������Development and use of media: The Project will utilize and/or develop various media to support awareness-building. Existing media channels (newspaper, radio and television) will be used to promote awareness.

iii �����������������������������������������������������������������������Periodic socialization (through the use of workshops and media) of the results of monitoring (described below), management and impacts.

B Management

i �������������������������������������������������������������Management strategies: The Project, together with UNDP, will support development of population management strategies.

ii �������������������������������������������������������������������Capacity: The Project will support the development of physical and human resource capacity for departments responsible for managing and monitoring in-migration

iii Legislative change

C Monitoring

i ����������������������������������������������������������Verify effectiveness of Project workforce recruitment and management policies and supporting media aiming to mitigate in- migration into Project area

ii ����������������������������������������������������������������������Facilitate development of government capacity to monitor in-migration and induced impacts.

III Kabupaten Teluk Bintuni A Building awareness of potential scale and impact of project-induced in‑migration

i ����������������������������������������������������������������������Workshops: The Project will facilitate workshops in each of the towns (Bintuni, Babo and Arandai) to build awareness of: (i) the potential for project-induced in-migration; (ii) potential induced impacts of in- migration; (iii) identification of management strategies, responsibilities and capacity to manage in-migration, and (iv) the Project concerns regarding in-migration an induced change and its commitment to

8 ISP Component Description 129 support activities aimed at mitigating in-migration into Project area. These workshops will involve key government departments (planning, population, health, education, police) as well as adat and religious leaders and NGOs.

ii ��������������������������������������������������������������������Village-level road show: Based on the results of the workshops, the Project will, together with government, adat and religious leaders, implement a village socialization process. The outreach program will target all coastal villages in Kabupaten Teluk Bintuni.

iii �����������������������������������������������Development and use of media: The Project will utilize and/or develop various media to support awareness-building. Existing media channels (newspaper, radio and television) will be used to promote awareness.

vi �����������������������������������������������������������������������Periodic socialization (through the use of workshops and media) of the results of monitoring (described below), management and impacts.

B Monitoring and management

i ���������������������������������������������������������������Monitoring Fora: The Project will promote the establishment of Monitoring Fora in Teluk Bintuni towns (i.e., Bintuni, Babo and Arandai) as well as in the resettlement-affected villages. (The Resettlement-affected Villages are included as it is recognized that the quality of the infrastructure and facilities and the proximity of the villages to the plant will by default attract immigrants). This process will require (a) building awareness; (b) establishment of forum; (c) definition of membership, indicators to be monitored, method of data collection, frequency of meeting, etc.

ii ���������������������������������������������������������������Management strategies: The Project will work together with the Monitoring Fora and the communities to develop and implement management strategies addressing key negative impacts.

8 6. .4 Implementation

Tangguh ISP retains primary management responsibility for this program. As the program aims to encourage local ownership and responsibility of the spontaneous in-migration and adverse induced impacts issues, the program manger will seek to work closely with government, religious and adat leaders, etc. In addition the program will link with other ISP programs (health, education, women’s empowerment) to strengthen its content and outreach. Various components (e.g., legislative change, development of media, village road show, etc.) will be outsourced.

Table 8.10 presents an activity schedule for this program. Program activities will commence 1st quarter 2006.

130 BP Tangguh Integrated Social Program Table 8 10. Activity Schedule for Mitigation of In-migration and Adverse Induced Impacts

Year Activity 2005 2006 2007 2008 2009 2010

general

assess national and provincial legislation on in-migration

assess provincial and kabupaten position on in-migration

identify lines of responsibility and capacity to monitor and

manage in-migration

develop media to support awareness-building and management strategies; use of commercial media

Regional Growth Centres

awareness-building

annual workshops

periodic socialization of issues with civil society using media, educational, religious avenues, etc.

capacity

Support capacity-building of govt depts, legislative change (as appropriate), development of management strategies

monitoring

verify effectiveness of Project workforce recruitment and management policies and supporting media pertaining to mitigation of in-migration

government-based monitoring unit (2x people/location)

Kabupaten Teluk Bintuni

awareness-building

annual workshops

village-level road show (including government, religious and adat leaders)

periodic socialization of issues with civil society using media, educational, religious avenues, etc.

monitoring and management

monitoring fora (Arandai, Bintuni, Babo and Resettlement- affected Villages)

develop and strengthen capacity to address and manage key negative impacts

8 ISP Component Description 131 8 7. Government and Civil Society in Kabupaten Teluk Bintuni

8 7. 1. Introduction

This program is designed to address issues of governance, government and civil society in Kabupaten Teluk Bintuni. The program has two components, namely strengthening the capacity of kabupaten government and strengthening the capacity of district- and village-level government. Both components include civil society awareness-building.

8 7. .2 Strengthening Kabupaten-level Government

8 7. .2 1. Context

As described in Chapter 4, the regency and government of Kabupaten Teluk Bintuni has been newly established through separation from Kabupaten Manokwari. Preliminary needs assessments conducted by YIPD/CLGI demonstrate the need for strengthening government capacity in areas ranging from strategic planning, performance budgeting to basic administration. The Project will support a medium-term program aimed at strengthening government capacity across levels and sectors.

8 7. .2 .2 Goal

Improved government, with particular emphasis on strategic planning in delivery of services to meet basic needs, increased transparency in decision-making, and the provision to stakeholders of consistent opportunities to shape services

8 7. .2 .3 Objectives

Strengthen the capacity of government in relation to strategic planning, delivery of basic services to their constituency and transparent and accountable management

8 7. .2 .4 Activities

ISP will subcontract the kabupaten-level governance program to qualified NGOs. Three program components have been identified:

I Technical advisors: Provided there is agreement with the kabupaten government, the program will support contracting and placement of technical advisors in government capacity-building and the health and education sectors of the regency government. These advisors will have primary responsibility for assisting the development of sector policy and strategic plans, and will facilitate coordination with the Tangguh Project initiatives in these sectors.

II Strategic planning in basic needs sectors: A short- to medium-term priority is the development of strategic plans for the health and education sectors. It is anticipated that the ISP will contract governance specialists to facilitate this process by: (i) providing training in strategic planning to the department staff; (ii) sourcing sector expertise within Papua to help the departmental staff develop strategic plans, and (iii) encouraging attendance by sectoral experts from key public sector, donor agencies and NGOs.

132 BP Tangguh Integrated Social Program III Capacity-building program: In addition to sector specific interventions, the governance specialists will implement a range of training programs for the new government. The ����������������������������������������������������YIPD/CLGI������������������������������������������� initial capacity/needs assessment with the kabupaten government indicates that the government has identified training needs for basic government administration, strategic planning, performance budget management, change management, human resource development, organizational development, etc.

8 7. .2 .5 Implementation

As indicated above, Tangguh ISP will outsource implementation of this program. Strong linkages between government, the ISP contractor and ISP will be essential to ensure that other programs reliant on government support and action can be delivered. Table 8.11 presents an activity schedule for this program. The program will commence in the 2nd quarter of 2006.

Table 8 11. Activity Schedule for Strengthening of Kabupaten Government

Year Activity 2005 2006 2007 2008 2009 2010

agreement with government

placement of technical advisors in basic needs sectors

strategic planning in basic needs sectors (education, health)

capacity-building program

8 7. .3 District- and Village-level Governance

8 7. .3 1. Context

The Indonesian government legislates the existence of government at village level with laws providing the basis for the establishment of executive and legislative bodies in each village. In Kabupaten Teluk Bintuni awareness of legislated government representation and their roles and responsibilities is limited. Generally, village government only comprises the executive branch of government.

8 7. .3 .2 Goal

Ensure the creation of and/or further strengthening of district- village-level government and governance to reinforce the leadership responsibilities so that the performance and services reflect community needs and priorities

8 7. .3 .3 Objectives

1 Build awareness and understanding of the structure, roles and responsibilities of government amongst the community and elected village government representatives thereby enabling the population to be active, well-informed participants in village-level (and district and regency) government

2 Strengthen capacity of village government to: (a) provide transparent and accountable district- and village-level government; (b) develop sustainable medium and longer-term development plans leading to improved delivery of services

8 ISP Component Description 133 8 7. .3 .4 Activities

The two districts in which the nine Project-identified DAVs are located will be the initial target of the district- and village-level governance program. The requisite period of training and mentoring suggest that further outreach to other villages in the period from 2006-2010 is likely to be limited. The district- and village-level good governance program will be implemented by contracted NGOs together with officials from district and regional government. The ISP contractor will be responsible for the following activities:

I Coordination with government: The contracted party will establish relations with the kabupaten and kecamatan governments to: (i) ensure support of the district- and village-level governance program; (ii) allow government to provide inputs into project design and identify their level of support and involvement; (iii) establish an agreement regarding implementation of the district- and village-level governance program, and (iv) define how kabupaten governments can support the process.

II A review of government legislation: The contracted party will, together with the regency government, review existing legislation pertaining to the structure, roles and responsibilities of village-level government.

III Field assessment: As a basis for project design and implementation, the contractor will conduct a field assessment that will:

A Assess kabupaten- and kecamatan-level government departments and personnel responsible for establishment and operations of village government particularly their awareness of the legal basis for village-level government, their capacity and their interest in supporting the program.

B Describe the state of village government in DAVs, including the existence of the executive and legislative arms of government and their roles and function in day-to-day existence

C Describe the state of awareness both with the village community and elected officials regarding the roles and responsibilities of government and where successes, failures or limitations are identified, seek to elucidate reasons for these.

D Conduct performance evaluation of government identifying the extent to which government structure exists and is functional and where dysfunctional, elucidate reasons for this

E Conduct capacity assessment of current village leadership and identify needs (i.e., changes in process, outputs, performance)

F Identify and share examples of the value of making changes and building capacity

IV Building public awareness: Based on C, above, the Contractor will design and implement an outreach campaign to raise the state of public awareness regarding the structure, roles and responsibility of government and their opportunities to participate in the decision-making process. This outreach campaign should be designed together with government and should utilize a range of approaches including focus group discussions with village leaders, community meetings, and media such as radio, posters and booklets.

134 BP Tangguh Integrated Social Program V Election of government-level bodies: Provide tools and third-party technical assistance as appropriate to ensure that government-led elections of village legislative (BAPERKAM) and executive bodies take place in a fair, transparent and inclusive process.

VII Capacity-building: Based on the results of the field assessment design and implement trainings for the village executive and legislative branches of government; include community leaders, tribal and religious leaders as appropriate.

VIII Mentoring: Following election of executive and legislative branches of government, a period of mentoring will be required to ensure that roles and responsibilities are assumed and implemented.

8.7.3.5 Implementation

Tangguh ISP will outsource this program. The contracted implementor will need to work closely with government to ensure implementation of the program and the achievement of program goals and objectives. Table 8.12 presents an activity schedule for this program. The program will be commence in the 2nd quarter of 2006.

Table 8.12 Activity Schedule for Village-Level Governance

Year Activity 2005 2006 2007 2008 2009 2010

agreement with government

recruitment of government staff

field assessment

building public awareness

election of government level bodies

training (legislative and executive)

mentoring

8.8 Integrated Community-based Security

8.8.1 Context

Tangguh had developed and is implementing an alternative approach to the provision of security. This approach is known as Integrated Community-based Security (ICBS). The ICBS approach recognizes that the key party in ensuring security in the vicinity of the Project is the local communities and that these communities interact with multiple stakeholders including other communities, the Project security and operations staff, the police and the military. Furthermore the Project has coordinated with the police to define the operating procedures, i.e., the definition of the security circumstances under which engagement of police and the military may occur. The Project holds that the first ring of security is the community and the local security force. If an incident is unmanageable, Project management will call the police. Only where the police and the Project deem an incident warrants military intervention will the military be asked to assist. These procedures are described in a document referred to as the Field Guidelines for Joint Security Measures within the Work Area of the Tangguh LNG Project, which is available on the BP website.

8 ISP Component Description 135 8 .8 .2 Goal

An integrated community-based security system that delivers effective, transparent security outcomes for the Tangguh Project.

8 .8 .3 Objectives

1 A primarily locally developed and managed security force capable of delivering the Project’s physical security needs

2 Delivery of Project security outcomes through development and implementation of an effective community policing system that develops awareness, ownership, trust and links between various security stakeholders (i.e., the community and the police)

3 Effective community-based Security Forum in which community leaders (including tribal, clan and adat leaders), local government, representatives from the military and the police and industry representatives meet together to discuss security issues

8 .8 .4 Activities

I �����������������������������������������������������Development of local content and security enterprise: The Project will support development of a Local Security Enterprise (LSE) to deliver the physical security needs of the Project operations and physical assets. In 2002, the Project contracted a security firm to develop the local security enterprise. Development of the Local Security Enterprise requires:

A the recruitment of security guards from around the Bay;

B training of recruits in the delivery of security. Training includes rules of engagement, self-defense, human rights, conflict resolution, etc.

To date the security firm has employed and trained 230 security guards (both men and women) from the DAVs around the Bay. The company will continue to manage development of the LSE until completion of LNG construction at which time it could potentially be able to operate as an independent business entity. The Tangguh Project could subsequently contract the LSE to provide physical security for the LNG plant and affiliated operations. In addition, the LSE can be contracted to provide security services to other industries operating in the Bay and beyond.

II ���������������������������Community Policing Program: The Project will support a Community Policing Program that aims to protect and promote the well-being of communities around the Bay. The program will involve cross-visits for local leaders to locations where community-based policing has been successfully implemented, an awareness-building campaign implemented in the Bay, etc.

III ���������������Security Forum: The Project will support the development of district- level Security Fora to promote understanding of law and order, to promote conflict resolution plan, and monitor, discuss and/or respond to security issues/incidents as they arise. The forum, comprising community leaders (including adat, religious, tribal and clan, and village leaders), local government,

136 BP Tangguh Integrated Social Program representatives from the police and military will meet on a needs basis to discuss security issues.

IV ���������Training: The Project will work together with the local police in developing and delivering training curricula for human rights awareness, first aid, etc.

8 .8 .5 Implementation

Implementation of the ICBS is occurring through ISP subcontractors. Specifically, as described above, the Project has contracted a security firm to develop the Local Security Enterprise. Implementation of activities associated with the security forum and community policing have been contracted to a national group (i.e., PUSHAM-UII). Table 8.13 presents an activity schedule for this program.

Table 8 13. Activity Schedule for Integrated Community-based Security

Year Activity 2003 2004 2005 2006 2007 2008 2009 2010

agreement with police and military

development of local security enterprise

security forum

community policing

8 .9 Health

8 .9 1. Context

As described in Chapter 4, the key findings of a YR2000 baseline health assessment of communities residing on the shores of Bintuni Bay include: (a) the communities have inadequate access to good quality health services; (b) the incidence of malaria and tuberculosis is high; (c) the communities lack access to reliable sources of drinking water; (d) the communities have inadequate sewerage facilities and sanitation practices contribute substantially to illness, and (e) the HIV/AIDS epidemic in Papua has moved from being more highly concentrated in a few high-risk groups to the general population.

While the Project recognizes that the primary responsibility for delivery of health services to communities lies with the government, it also recognizes that health is a basic need for communities in Bintuni Bay. In addition, the Project AMDAL identifies workforce health priorities including potential loss of productivity due to malaria, HIV, water-borne diseases and general poor community health indicators, and concerns regarding increased rates of HIV infection associated with increased population and incomes associated with Project employment. Accordingly, since 2003 the Project has been supporting a five-year health program comprising: (i) maternal and child health; (ii) malaria control; (iii) HIV/AIDS prevention; (iv) water, environment and sanitation, and (v) health service strengthening. These programs are being implemented by the Tangguh Community Health Unit (TCHU) and its subcontractors, in collaboration with local government. The TCHU has subcontracted Project Concern International (PCI - an international NGO Health Service Provider) to implement the Maternal and Child Health and Water, Environment and Sanitation Programs. The TCHU has also contracted Global Assistance and Healthcare to implement the malaria control program.

8 ISP Component Description 137 The health program will continue to be implemented as planned. Given its relative success, the TCHU intends to introduce a number of new initiatives and strengthen a number of existing programs, including:

 �������������������������������������������������������������������������������assist government health department in policy development, strategic planning, institutional strengthening

 ������������������������������������������������������������������������������expansion of successful programs (i.e., malaria control, HIV/AIDS prevention, maternal and child health programs) into the remaining districts within Kabupaten Teluk Bintuni and the neighbouring regencies of Sorong Selatan and Fakfak

 ��������������������������������������������������������������������������the transition of the TCHU to a Kabupaten Teluk Bintuni based-health NGO, thereby allowing programs to (i) access alternative sources of funding, and (ii) increase the geographical coverage of health programs into neighbouring regions. Such a development would increase the impact of health programs and the sustainability of health sector interventions and is very much in line with the ISP Tangguh concept of focusing interventions in the kabupaten and subsequently replicating success across a broader geographical area.

 �����������������������������������������������������������������������������the introduction of innovative pilot programs, capacity-building and quality assurance tools, and funding mechanisms to explore alternative models to improving the delivery of basic health services

 �������������������������������������������������������������������������������specific targeting of HIV/AIDS prevention programs at high risk populations in the urban centres of the Bird’s Head (i.e., Kaimana, Fakfak, Sorong, Bintuni and Manokwari)

8 .9 .2 Goals

 ������������������������������Improved health status in the kabupaten population targeted by the ISP, particularly in maternal and child health, water-borne disease, diseases due to poor sanitation, malaria, tuberculosis, HIV and sexually transmitted diseases

 ������������������������������������������������������������������������������Increased access to, confidence in and quality of health service provision in Kabupaten Teluk Bintuni

 �������������������������������������������������������������������������������Increased quality of health services provided to the Tangguh Project workforce in Project facilities

8 .9 .3 Objectives

1 Maternal and Child Health Program:

a ������������������������������������������������������������������Improved health and nutrition status for children <5 and women of reproductive age

b Improved access to quality maternal and child health care services

c ���������������������������������������������������Improved health-seeking and care-giving behaviour;

2 �������������������������Malaria Control Program:

a Reduction in malaria transmission rates

b Reduction in malaria mortality rates

138 BP Tangguh Integrated Social Program 3 HIV/AIDS Prevention Program:

a ��������������������������������������������������������������������������Improved risk-reduction behaviours for the population, especially at-risk groups

b �������������������������������������������������������������Reduced HIV/AIDS and STI transmission and impacts on Tangguh workforce and conversely, limited impact that the workforce has on the development of the HIV/AIDS epidemic in Papua

c �����������������������������������������������������������������������Limited impact of HIV/AIDS and STI transmission in the Bird’s Head and improved capacity of the local community to deal with the HIV/AIDS epidemic

4 TB Control Program:

a ������������������������������������������������������������������������Establishment of effective workplace TB Control program for the Tangguh Project

b ��������������������������������������������������������������������Improved capacity of health providers in Kabupaten Teluk Bintuni to prevent and control TB

5 Water, Environment and Sanitation Program:

a �����������������������������������������������������������������������Increased access to safe drinking water and adequate sanitation in the DAVs

b Increased community capacity to prevent disease due to poor sanitation

c Reduction in reported rates of diarrhea disease in adults and children

d Increased access to adequate sanitation

e Reduction in child mortality due to diarrheal disease

f �����������������������������������������������������������������Increase scientific understanding of causes of diarrheal disease

6 Basic Health Service:

a ��������������������������������������������������������������������������Improved access to and provision of better quality health services in the Directly Affected Villages

b Improved community confidence in local health services

8 .9 .4 Activities

I Maternal and Child Health Program

A Trained Village Health Workers (VHWs) and cadres in each village

B Establishment of a cadre forum

C Support for integrated village health posts (Posyandu)

D Development of village-based health institutions

E Positive Deviance/Health approach to improving the nutrition status

F Improved participation of fathers and male children

G Organizational development of NGO from Papua-based PCI project staff, which includes specialist for health, nutrition and training

H Training of NGO staff in project management

I Increased institutional capacity of other local NGOs

8 ISP Component Description 139 J Training of health care providers in ”Integrated Management of Childhood Illness”

K Training of midwives in “Life-saving Skills”

L Facilitation of community/health provider meetings

M Training of Traditional Birth Attendants

N Village birth huts run by midwives

II Malaria Control Program

A Introduction of a social marketing program to improve early diagnosis and treatment of malaria

B Implementation of a malaria surveillance system

C Education activities within the community

D Strategic implementation of vector control activities to reduce local transmission of malaria

III HIV/AIDS Prevention Program

Program activities will be implemented at three levels:

A Tangguh Workforce:

i ������������������������������������������������������������Provision of education (Peer Group Educators), Information, Communication materials to employees re: ‘Safe Sex’ and condom use

ii ���������������������������������������������������������������������������Provision of facilities for confidential, voluntary counseling and testing for HIV and other STIs

iii ���������������������������������������������������������������������Provision of appropriate care and support for BP employees and their families who are HIV positive

B Local Community:

i ����������������������������������������������������������������Development of a village-level HIV awareness-raising program in Bintuni Bay. The TCHU NGO will work in collaboration with the Ministry of Health, and international NGOs active in the Bird’s Head (i.e., Family Health International (FHI), IHPCP, and Project Concern International (PCI)). This will involve the use of various approaches to women’s, men’s and youth groups, and include radio programming in local tribal languages.

C Bird’s Head:

i �����������������������������������������������������������������������Capacity-building and training for Project and government health staff in management of HIV and STI

ii ��������������������������������������������������������������Direct support for NGOs working with high risk groups and the general population in:

a Kaimana – STI services; Capacity-building; ethical surveillance; care and support

b Fakfak – STI services; capacity-building; ethical surveillance; care and support

c Manokwari – STI services; capacity-building; ethical surveillance; care and support

140 BP Tangguh Integrated Social Program vi ���������������������������������������������Advocacy for 100% Condom Use Program in each kabupaten

vii ����������������������������������������������������������������������Inter-sectoral capacity-building by supporting the development of the District AIDS Prevention Committee

viii ��������������������������������������������������������������������Improved surveillance of HIV in general population groups: Unlinked anonymous testing at ANC; Posyandu at time of testing for anemia or syphilis (with Ministry of Health and Family Health International)

D Papua:

i �����������������������������������������������������������������������Strategic support for improved diagnostic services, such as Eliza, CD4 and Genprobe in locations that serve all regions of Papua

IV TB Control Program

A Tangguh Workplace TB program:

i ��������������������������������������������������������������Pre-Employment Medical Check-up (PEMCU) for current active TB which will include symptoms, TB contact review, chest X-ray and sputum exam for AFB + Tuberculin skin test if indicated

ii Maintenance of a database of workforce TB cases

iii ��������������������������������������������������������������Contact tracing in the community using Village Health Workers (VHWs)

iv TB treatment using DOTS (Directly Observed Treatment Short- course)

B Community TB program:

i �������������������������������������������������������������������Active contact tracing from workforce cases in the local community by village health workers (VHWs)

ii A community-based active TB case detection program by VHWs

iii Improved surveillance and monitoring of TB

iv ������������������������������������������������������������������������Capacity-building in the local health department to ensure provision of DOTS in the community

v �����������������������������������������������������������������Support development of an X-ray facility and microscopy referral centre (MRC) at Bintuni

vi TB Quality Assurance program

V Water and Sanitation

A Water and sanitation program interventions

i Education and behaviour change:

a Awareness program in schools and community

b Health promotion, IEC����������������������� – ��������������������posters, comics etc.

c Community behaviour change – positive deviance based on household survey

d Program promoting of hand-washing with soap

8 ISP Component Description 141 ii ������������������������������������������������������������������Implementation of appropriate technology interventions to improve household water security

a Approach is specific to each village and will be determined by village situational survey

b Need to address water source, community and household water storage and treatment

c Need to identify appropriate sustainable solutions (social, cultural, economic, technical) and validate potential solutions through community consultation process

B Improved public health response to diarrhea outbreaks

i �������������������������������������������������������������������Improved surveillance of water sources and diarrhea disease in the community, to include:

a Assessing fecal contamination of water sources

b Diarrhea cases:

o Collaboration with Health Department

o Monitoring form for Village Health Workers (VHWs) and direct reporting by TCHU

ii ������������������������������������������������������������������Increased collaboration between Health Department and TCHU during epidemics, to improve responsiveness of health services in urgent situations

a Develop a procedure for rapid assessment and mobilization of health resources

b Increase access of community to health care through VHWs and development of health infrastructure (i.e., Puskesmas, Pustu, Pos Obat)

c Training for health staff in Integrated Management of Childhood Illness

d Improve coordination between GOI and TCHU in response to diarrhea outbreak in DAVs

C Validation of program with well-planned research

i �������������������������������������������������������������Describe epidemiology of diarrheal diseases in Teluk Bintuni

a Collaboration with academic institutions - WHO Rotavirus Surveillance Unit, Gajah Mada University, UNIPA, TCHU

b Develop research proposal seeking external funding

ii Situational assessment in each population group in the work area

a Sanitary survey of water source and household water security

b Household survey of KPC

c Improved and coordinated microbiological surveillance of water sources and points of contamination up to consumption

iii �������������������������������������������������������������������Program activities and planning should be informed by operational, action research on a village by village basis, and subject to frequent review

142 BP Tangguh Integrated Social Program 8 .9 .5 Implementation

The Tangguh Community Health programs are currently being implemented by the TCHU, contracted NGOs. From 2006 there will be a progressive transition of responsibility for implementation of programs from TCHU to a stand-alone health NGO based in Teluk Bintuni. The TCHU and its program partners will continue to provide overall management and technical inputs to the local health NGO until adequate competency and capacity is developed.

Whilst establishing a local health NGO and continuing towards increasing local government capacity in this sector, TCHU also plans to achieve greater population and geographical coverage of its programs by establishing partnerships and leveraging funding from bilateral and other donor agencies. The desired mechanism for the expansion of the programs around the Bay is through a Global Development Alliance with USAID. ISP/Tangguh anticipates that a GDA will be developed by the 2nd quarter of 2006. Tangguh’s commitment to funding community health programs will continue throughout the life of the Tangguh Project but in order to catalyze program implementation, this commitment will be higher during start-up and the early part of the Project and be progressively reduced as local capacity and alternative sources of support are identified.

Table 8.14 (pages 144-145) presents an activity schedule for the Health Program.

8 10. Basic Education

8 10. 1. Context

As one component of its broad commitment to supporting the economic, social and cultural development of the Bintuni Bay communities, the Tangguh Project aims to support the delivery of basic and higher education to Kabupaten Teluk Bintuni (including Directly Affected communities).

To better understand how the Project could best achieve this objective, the Project has supported various studies on the education environment including: (i) in 2002 a British Council study focusing on the education sector in the Bird’s Head of Papua and (ii) in 2003 Cenderawasih University (UNCEN) and the National Department of Education conducted a field-level assessment of the educational environment of the Bay. The results of these studies are presented in Section 4.3.3.5. These studies together with direct field experience indicate that:

 ���������������������������������������������������������������������������������An education sector assistance program for Teluk Bintuni must initially focus on primary school education.

 ����������������������������������������������������������������������������An integrated holistic approach to addressing the identified constraints is necessary. By example: (i) improving infrastructure without addressing household and community investment in education or (ii) providing textbooks without addressing teacher competency to utilize up-to-date textbooks in line with new nationally recognized curricula will in all probability be fruitless.

 ���������������������������������������������������������������������������������Successfully and sustainably addressing the identified shortcomings will require the buy-in of key education service providers, namely government, NGOs, the donor and aid agency community, teachers and communities. Ensuring coordination with these stakeholders prior to commencing education sector development initiatives is critical. Securing stakeholder definition of a common vision for education service delivery in Teluk Bintuni is critical to ensuring both the success and sustainability of Project support to the education sector.

8 ISP Component Description 143 Table 8 14. Activity Schedule for Health Program 2010 i on product 2009 maintenance 2008 delivery of MCH programs in DAVs by Teluk Bintuni Bintuni Teluk by delivery of MCH programs in DAVs MCH programs. Health NGO; regionalization of model for Teluk maintenance of community programs throughout local NGO by Bintuni TCHU/Teluk guidance - maintenance phase; technical NGO Bintuni 2007 consolidation TB program of Teluk through NGO Bintuni construct i on 2006 exit strategy ” during 2007 exit consolidation establishment of Teluk Bintuni Health Bintuni Teluk establishment of programs; PCI NGO and support for “ role; consolidation of KPAD place HIV maintenance of work program and community-level interventions; programs of funding for leveraging Head throughout Bird’s 2005 implementation of community-based TB program; collaboration with health of funding for department; leveraging Head programs throughout Bird’s ssurance of fitness for work; prevention of lifestyle-, drug- drug- of lifestyle-, work; prevention for diseases; a ‑ ssurance of fitness mitigation of malaria, HIV and other infectious environment; and alcohol-related disorders; implementationwork of health taskand assurance a healthy analyses hearing protection program; assurance of occupational health, clinical and emergency medicine standards; place health policies and procedures. maintenance of work n re- p 2004 construct i o implementation: Assistance and Healthcare Global TCHU: assess feasibility; implement TB place work program work place work health policy and procedure and development implementation Concern International: Project implementation of maternal and child health programs in DAVs implementation place of work program, community-level interventions and strengthening of Prevention AIDS Regional Head Bird’s local support for (KPAD); Committee NGOs, e.g., PtPS Manokwari prevent sickness and absenteeism, and sickness prevent due to malaria limit the impact of HIV/AIDS and transmission STI Workplace establish an effective TB control program a high standard provide of health care disease, and promote prevent health and safety attendance significantly improve at antenatal of pregnant women clinics significantly increase no. of births trained health provider by attended childhood significantly improve nutrition and immunization coverage reduce the malaria transmission rate in DAVs reduce malaria mortality rates in to zero DAVs limit the impact of HIV/AIDS and Head transmission in the Bird’s STI area the capacity of the local improve community to deal with the HIV/ AIDS epidemic the capacity significantly improve to prevent of local health providers TB and treat

GOALS (‘TCHU Health Plan 03-07’) • • • • • • • • • • • • •

Tangguh Occupational Health Occupational Tangguh Program MCH Program Malaria Program HIV Program TB YR p h a s e

144 BP Tangguh Integrated Social Program Table 8 14. Activity Schedule for Health Program (cont .) GDA “ GDA 2010 “ driving for “ catalyst ” for i on product 2009 2008 maintenance of community programs throughout Teluk Teluk maintenance of community programs throughout local NGO by Bintuni community less reliance on BP as a result of improved funding and increased external health, infrastructure 2007 for public health programs in Bintuni Bay; supports health NGO Bay; public health programs in Bintuni ” for expected outcomes: expected Services Government improved 1. 2. community-controlled clinic models Manual Treatment 3. introduction of Standard 4. integrated health care delivery model / health micro-insurance schemes 5. a functional local health NGO funding; and external Project Tangguh unit, supported by technical force Bintuni; Teluk and consolidation and management of health programs in DAVs under co-funding through partnerships between donor agencies and BP, TCHU input by and technical umbrella ” ; high degree of ‘nurturing’ construct i on 2006 2005 establishment of Teluk Bintuni Health Bintuni Teluk establishment of NGO. role as a Tangguh Head; BP alliances/partnerships with bilateral donor agencies throughout Bird’s new health in the region improving n re- p 2004 construct i o TCHU support for Capacity-building, TCHU support for training of health and strategic to local government advocacy staff, local health infrastructure assistance to develop health program interventions,a high degree of M&E and operational appropriate, evidence-based underpinned by culturally innovative, research and program management unit with community technical Project Tangguh high dependence on focus; ends GDA NGO alliances and collaboration informal Tangguh; high dependence on BP TCHU assists with proposals to donor agencies with government; Project Concern International: Implementationand sanitation Project of water and village groups; program in schools change education/behaviour and and sanitation water infrastructure to improve collaboration with ComDev of operational interventions; high level implement appropriate technology research

significantly increase access to and adequate drinking water safe sanitation increase community capacity disease due to poor to prevent sanitation of provision assist in achieving quality health servicesbetter community confidence in improve local health services community access to Improve health services

GOALS (‘TCHU Health Plan 03-07’) • • • •

GDA

Program Assurance Function NGO Health Funding

Basic Health Services Health Basic Head

Water and Sanitation Sanitation and Water Quality TCHU Bintuni Teluk Program Bird’s Bird’s YR p h a s e

8 ISP Component Description 145 8 10. .2 Objectives

1 Development of capacity to manage the basic education sector in Kabupaten Teluk Bintuni

2 Improved participation, completion and learning outcomes from basic education in Kabupaten Teluk Bintuni

8 10. .3 Activities

I Strategic planning and management capacity Project support for the education sector must start with coordination amongst the education sector stakeholders to allow identification of a common vision and participation in identifying problems and solutions. The stakeholders will participate in a strategic planning training and development exercise implemented by the YIPD/CLGI government capacity-building program.

II Assessment and capacity-building of education service providers The program will assess the capacity of basic education service providers. Where weaknesses are identified, appropriate capacity-building activities (e.g., training, workshops) will be implemented.

III Education resources A Teacher competency: Over the last decades the institutional approaches for developing teachers has changed and as consequence the educational background and skills of the current stock of teachers is variable. New approaches are currently being promoted (i.e., cluster-based programs, competency based learning). This component of the program aims to improve the capacity of teachers through the development and implementation of a sustainable capacity-building program.

B Addressing student/teacher ratios: The Government budget allocation for teachers allows for 1-2 teachers per school. Any improvement on student- teacher ratios and teacher-class time will be dependent on increasing teacher numbers. Experience (e.g., World Bank) point to the fact that user-pay systems whereby the community agrees to pay teacher wages are critical to ensuring ownership and success of education. The Project will facilitate recruitment, placement and wages for additional teachers allowing a reduction in the student/teacher ratio to 20:1.

C Incentive structure for remote postings: Besides the number of teachers, their commitment to teaching in remote postings is affected by living conditions, low salaries, limited resources, etc. To ensure delivery of education services by teachers the Project will work together with the Department of Education and Training and the religious education service providers operating in the Bay to develop an effective incentive structure that promotes attendance and normal teaching hours. Such a structure should consider current salaries, an indexed salary bonus based on location, an effective monitoring and reporting mechanism, training, etc. Once developed, the guidelines should be integrated into government policies and made public.

146 BP Tangguh Integrated Social Program D Provision of current curricula and textbooks: All primary schools should be provided with a minimal set of up-to-date textbooks for primary schools.

E Papuan textbooks: The Project will support a pilot project developing Papuan content textbooks. The design and publication of textbooks focuses on the mainstream population. This activity will develop textbooks specifically applicable to the Papuan context.

F Scholarships for SMP- and SMA-level education: Scholarships will be provided for SMP- and SMA-level education. Mechanisms for determining number, value, allocation and administration of scholarships need to be developed. Allocation should perhaps be based on total number available for north shore and south shore communities with further allocation being performance/merit-based. Specific scholarships should be dedicated to girls so as to increase their participation in education. Under no circumstances should cash-in-hand scholarships be offered. The Project should not provide scholarships for primary school.

G Scholarships for higher education: The Project is providing scholarships for higher education to technical colleges and universities in Papua. Since 2002, scholarships have been provided to the administration of six institutions.

IV Household and community support for education Promoting broader-based community and household support for, and student interest in, education vis a vis recognizing importance of education, supporting child attendance at school, encouraging completion of homework, interest to attend school, etc., will be a key aspect of improving educational achievement. Various initiatives are proposed:

A Strengthening Parent-Teacher Associations

B Role models: Identify a number of local role models who have succeeded in education and have progressed to technical and professional occupations and invite them to visit communities to describe their work and the importance of education.

C Development of media: A multi-faceted media campaign will focus on the value of obtaining an education, clearly demonstrating links to employment opportunities in Tangguh and elsewhere in Papua.

V Direct support of DAV schools ISP also provides direct support to DAV schools through improvement of infrastructure, increases in teacher numbers and teacher competency, etc. This support is provided by subcontracting education service providers and providing grant funds to these service providers.

8 10. .4 Implementation

Tangguh ISP will outsource the kabupaten-level basic education program. Nonetheless, ISP retains responsibility for a number of components including direct assistance to DAVs and the design and award of scholarships (particularly for higher education). The program manager will need to

8 ISP Component Description 147 coordinate strongly with the relevant government department and education service providers as well as the ISP contractor for basic education.

Table 8.15 presents the activity schedule for this program. ISP/Tangguh anticipates awarding a contract for delivery of the basic education program in Kabupaten Teluk Bintuni by the 2nd quarter of 2006. The implementation of the basic education program will be defined by the selected contractor for basic education.

Table 8 15. Activity Schedule for Education Support Program

Year Activity 2005 2006 2007 2008 2009 2010

strategic planning

strategic planning workshop

education stakeholder meetings (2x/yr)

assessment and capacity-building of education service providers

resources

training for improved teacher competency

improved student/teacher ratios

incentive structure supporting remote postings

provision of textbooks

pilot design of Papuan content textbooks

household and community support for education

strengthening parent-teacher associations

visits by role models

media

scholarships

SMA

SMP

higher education

contribution to education-specific personal savings

Tangguh direct support of DAV schools

muhammediyah for north shore DAVs

YPPK for south shore DAVs

SD and SMP in Onar and Tanah Merah Baru (YPK)

Otoweri (YPMD)

148 BP Tangguh Integrated Social Program 8 11. Vocational Training

8 11. 1. Objectives

1 DAV population have increased literacy and numeracy skills

2 Potential employees possess a basic awareness and skill set that enables them to safely participate in regulated, wage-based employment offered during LNG construction

3 The adult Kabupaten Teluk Bintuni population possesses relevant trade-sector skills that allow them to participate in the developing economy of the Bay or regional growth centres (such as Manokwari, Sorong and Fakfak) following completion of LNG construction-related employment.

4 Creation of a national workforce capable of assuming supervisory roles in the LNG operations organization

8 11. .2 Activities

I Functional adult literacy and numeracy: The majority of the Bay population has failed to complete primary education. As a consequence basic literacy and numeracy skills are poorly developed. The Project will support a program aimed at improving the basic literacy and numeracy skills of the DAV population with the objective of bringing the adult population to a level where they can actively and meaningfully participate in the developing economy as well as provide the necessary guidance for healthy, educated family growth.

II Vocational training: Project commitments to supporting vocational training are aimed at: (i) preparing the workforce to participate in LNG plant construction (ii) supporting transition of the LNG construction workforce to non-Project employment as construction-related employment declines, and (iii) building the capacity of the population to access and participate in alternative employment opportunities offered by the economic development of the Bay and the regional growth centres. To meet these objectives the Project is supporting:

A Workforce preparation

i �����������������������������������������������������������������������Pre-employment training: The majority of the potential local workforce has not had experience in regulated wage-based employment nor are they familiar with the standards being applied to construction. Accordingly the Project will facilitate pre-employment induction training for local employees. Once potential recruits have passed necessary conditions (i.e., aptitude and health tests) they will participate in a pre-employment training program. The training program will introduce them to the basic aspects of working on LNG construction including:

 contracts

 wage payment systems

 organizational structure and working for a supervisor

 cross-cultural awareness

8 ISP Component Description 149  ����������������������������������������������������������Health, Safety and Environment (HSE) standards and use of Personal Protective Equipment (PPE)

 basic operations of hand-held implements

 regulated working hours

ii ����������������������������������������������������������������������Vocational training: The Project will provide 75 construction-related employment training opportunities to people in the DAVs. This is being achieved by sending trainees to vocational training institutions in Jayapura and Malang, Java.

B Ongoing vocational training

The Project will support ongoing participation of the population in vocational training. Each year, for the next five years, 50 candidates from throughout Kabupaten Teluk Bintuni will be provided with opportunities to participate in vocational training. A fixed proportion of these opportunities will be offered to women. Priority subject matter will be based on discussions with government and business and will reflect potential employment opportunities within the Bay and the regional growth centres. At this stage it is likely that technical trade skills across various sectors including construction (i.e., masonry, basic carpentry, electrical and plumbing) and service industries will be most in demand.

It is anticipated that such vocational training will reduce the dependency of the Bay population on the Tangguh Project by allowing individuals to access and participate in alternative employment opportunities as they develop within the Bay or in the regional growth centres.

III LNG operational phase employment

To promote local participation in the operation of the LNG facilities, the Project is supporting a LNG Operations Phase Training Program. This program is being implemented in the LNG Plant in Bontang, Kalimantan over a three-year period. There are 61 trainees from Papua and Java.

8 11. .3 Implementation

The majority of vocational training activities will be implemented by ISP subcontractors.

With regard to ongoing vocational training, the Project has committed to the development of a multi-purpose training centre in Arandai on the north shore of Teluk Bintuni. ISP will utilize the centre to facilitate training in vocational skills. Following construction of the centre, the provision of training services will be outsourced. The centre will also be used for training on livelihood skills (e.g., agriculture, fisheries, microenterprise, etc.). In addition to the delivery of vocational training at the multi-purpose training centre described above, the Project will develop relationships with existing vocational training centres in Papua (i.e., Jayapura, Manokwari and Sorong).

Finally, with regard to LNG Facilities Operations Phase employment, the training program is being managed by the LNG Operations section. Training commenced in 2004 and will continue to 2008. Following a period of training in the LNG facilities in Bontang, Kalimantan, the trainees will complete their training during the hand over of facilities at the end of the construction period (i.e., 2007).

Table 8.16 presents an activity schedule for this program.

150 BP Tangguh Integrated Social Program Table 8 16. Activity Schedule for Vocational Training

Year Activity 2004 2005 2006 2007 2008 2009 2010

functional adult literacy and numeracy in DAVs

vocational training

pre-employment induction

pre-employment vocational training

BLK Jayapura

VEDC Malang

Multi-purpose Training Centre (MPTC)

construction and infrastructure

operations

ongoing vocational training

training at MPTC

ongoing (50 pax/year)

training for LNG operational phase employment

8 12. Women’s Empowerment

8 12. 1. Introduction

Women are an effective agent for change in development and as such must play an important role in the Project’s programs. Experience around the world clearly demonstrates women are more focused on important critical development issues such as education and health care, are more successful in microenterprise, are more likely to save, and are more cooperative in group settings than their male counterparts. Therefore, the Project is committed to empowering women so that they may more effectively participate in the development of their communities.

8 12. .2 Context

As described in Chapter 4, in Kabupaten Teluk Bintuni women are disempowered across a broad range of activities including: (i) representation, planning and decision-making in tribal and clan affairs; (ii) participation in village planning and decision-making; (iii) control and management of household affairs; (iv) participation in education, and (v) participation in wage employment and income-generating activities. Much of this stems from the fact that: (i) households are patriarchal with the male head serving as the representative and decision maker of the household and his spouse assuming a supporting role, and (ii) the gender division of labour which places a heavy burden on women. Women endure the burden of household management (i.e., child bearing and rearing, food collection and processing, tending of gardens, fuel wood collection, food preparation, hygiene, sanitation and washing). This burden places significant pressure and responsibility on women, all the more where household facilities (e.g., water and sanitation) and government services (i.e., health)

8 ISP Component Description 151 are lacking. In addition, there are fundamental concerns with the rates of female participation and completion at school, low literacy and numeracy skills and the high incidence of family violence against women. Thus there are both practical and cultural challenges that must be overcome in order for women to play a larger role in village development.

8 12. .3 Goal

Improve the social position and quality of life of women in their society

8 12. .4 Objectives

1 Greater awareness, understanding and respect for the rights, roles and responsibilities of women

2 Improved status of women as reflected in greater participation in decision- making and management of resources at the household and community level

3 ��������������������������������������������������������������������������Outreach to village women on women’s development issues, particularly the recognition and mitigation of the negative impacts induced by Project-driven changes in livelihood patterns and income levels.

8 12. .5 Activities

I Women’s Forum Establishing a Women’s Forum comprised of the most capable women from each village will send a clear signal to both women and men that the Project values the contribution women can make to community development. The Project’s knowledge of individual capabilities will be based on women’s performance in the various training programs completed so far in the villages. The activities of the Forum will feature training and comparative studies conducted outside the village on a regular basis. The opportunity to travel outside the village for these activities will elevate the status of the women, help build their self-esteem and increase the likelihood that the women will be recognized by their home communities as legitimate leadership figures. Conducting activities outside the village will also remove the women from their daily duties which often prove very distracting thus limiting the effectiveness of training programs conducted in the village. Training will focus on leadership skills and on sector-specific content in the fields of education, health, microfinance and microenterprise. Members of the women’s group will be tasked with transferring their knowledge to women in their home village via village-level training programs.

Initially, the Women’s Forum will be made up of women from the nine DAVs. Once established and active, the Women’s Forum will have responsibility for expanding the group to include women from other villages in Kabupaten Teluk Bintuni thus creating a true Bay-wide forum benefiting women.

To ensure the Women’s Forum is able to carry out its activities, funds outside the control of the traditional male-dominated decision-making apparatus will be provided.

152 BP Tangguh Integrated Social Program II Outreach to village women on women’s development issues The Women’s Forum will be engaged in outreach to village women by providing extension on women’s development issues including health, education, savings and microenterprise and adverse induced impacts.

Potential adverse induce impacts are a particular concern. Specifically greater participation in wage-earning activities outside the village induces two negative impacts on women. First, experience clearly demonstrates greater disposable incomes lead to increased alcohol abuse, prostitution and subsequently a greater prevalence of sexually transmitted disease and increased domestic violence against women. Second, participation of men in Project employment outside the village will shift responsibility for daily activities normally performed by men onto women remaining in the village. The Project will raise awareness of these negative impacts by disseminating information through the Women’s Forum, health care providers, religious institutions and schools.

The Project will build awareness of typical destructive negative behaviours associated with larger disposable incomes. Socialization of negative impacts will utilize context-appropriate print media such as cartoon booklets and videos addressing the destructive consequences of alcoholism and domestic violence. The involvement of religious groups will be sought for delivery of these socially sensitive messages. In addition, saving of wage income will be encouraged by emphasizing the benefits of setting aside money for the future and creating mechanisms making saving more convenient and practical. The aim of this two- pronged strategy is to reduce cash in hand and the negative behaviours which inevitably result.

The shifting of responsibilities from men seeking wage employment outside the village to women will also be socialized. For example, the need to consider increased household spending for purchase of kerosene to replace fuel wood and purchase of rice to replace sago will be emphasized as both fuel wood collection and sago harvesting and processing are labour intensive activities that will be difficult for women to manage one their own. Potential wage- earners will also be encouraged to consider how they will compensate for lost agricultural and marine produce should they decide to accept employment with the Project.

III Participation targets Community development programs have tended to favour males in decision- making, participation and distribution of benefits. For example, scholarships for education and loans for small businesses most often go to males. To better empower women, specific targets for participation of women will be established. For education, 50% of scholarships will be awarded to female applicants. In microenterprise, specific funds will be earmarked for women applying for loans. In microfinance, savings programs catering to the needs and capabilities of women will be established. Specific targets will also be established for the participation of women in vocational training supported by the Project.

8 ISP Component Description 153 IV Village-level support for women As noted earlier, the daily duties of village women are arduous and time- consuming, making it difficult for women to participate fully in village-level activities. To offset this limitation, the Project will seek solutions such as organizing babysitting services and providing meals so that women attending training do not have to miss classes to perform their daily duties. Money will be budgeted separately to fund the provision of these services.

It should also be noted that several development programs already in progress will do much to make daily life easier for women. In particular, improved access to clean water and interventions in health care will have greatest impact on women who traditionally bear the responsibility for collecting water and for caring for sick family members. Also, interventions in education which will provide greater access to all students will provide substantial benefit since females are most often the ones excluded when educational resources are inadequate to meet all needs.

8 12. 6. Implementation

Program development will be led by the program development group. Program implementation will be facilitated by the female staff of the community development unit. These staff will be heavily involved in formation of the Women’s Forum, facilitation of training (both across ISP sectoral programs and from external trainers) and comparative studies, etc. Gender-based eligibility and participation rates in education (i.e., scholarships), vocational training and microenterprise have already been factored into the design of the relevant sectoral programs.

Table 8 16. Activity Schedule for Women’s Empowerment Program

Year Activity 2005 2006 2007 2008 2009 2010

Women’s Forum

formation

training

cross-visits (comparative studies)

village-level extension work by Forum

build awareness of negative induced impacts

village-level extension work by Forum

participation targets

education

vocational training

village-level support for women

needs assessment / focus group discussions

support

154 BP Tangguh Integrated Social Program 8 13. Microfinance and Microenterprise Development

8 13. 1. Context

The entry of the Tangguh Project can serve as a stimulus for the development of micro- and small enterprises. This can occur in two ways. First, income derived from employment during LNG construction can serve as the basis for savings and subsequent investment in alternative livelihood activities including microenterprises. Second, the LNG plant operational needs include supplies of vegetables, fruit, fish poultry and meat for catering requirements, and potential opportunities associated with the service and maintenance of the LNG plant (e.g., painting, cleaning, landscape management, etc.). Finally, the development of the new kabupaten together with the Tangguh Project will serve as the stimulus for other enterprises.

To date the Tangguh Project has supported savings programs and individual and group-level microenterprises (most commonly kiosks) in a number of DAVs. These activities have been implemented by national and/or local NGOs including SATUNAMA and YPPWP.

8 13. .2 Goal

The goal of the ISP Microfinance and Microenterprise Program is:

Sound and sustainable savings and enterprise development opportunities that strengthen and diversify long-term economic opportunities and thereby lead to improved livelihoods through improved incomes, employment, etc. and a reduced long-term dependency on the Tangguh LNG Project.

8 13. .3 Objectives

The population of Teluk Bintuni has:

1 Improved individual and household awareness, access to savings vehicles, and level of savings

2 Improved capacity to develop micro- and small enterprise that can meet the operational needs of the LNG plant and/or that responds to new opportunities arising from the ongoing economic development occurring within the Bay

8 13. .4 Activities

I Microfinance

A Establish an institution providing financial and capacity-building services to village communities and Bay-wide micro- and small enterprise development initiatives

The Project has contracted CEMSED to facilitate the establishment and operation of a Bank Perkreditan Rakyat (BPR) in Bintuni. The BPR offers financial services to village communities and Bay-wide micro- and small enterprise development initiatives.

8 ISP Component Description 155 Key activities in establishment and operation of a BPR include:

 securing appropriate permits

 infrastructure

 staffing and capacity-building

 operations

B Develop village-level vehicles providing access to savings and loans

i ������������������������������������������������������������������Develop institutional links to BPR: The ability of BPR to deliver financial services to village communities is contingent upon: (a) the availability of transport; (b) the establishment of savings/loans vehicles in towns and villages, and (c) the interest and knowledge of individuals to utilize the service. Accordingly, an initial step in developing village-level savings/loan vehicles is the development of institutional links with BPR Bintuni along with a community awareness campaign.

ii Identify optimal village-level savings/loans vehicles: Various village- level savings/loans vehicles can be identified. Identification of the most appropriate vehicle should consider logistical, social, cultural, and economic factors as well as the anticipated BPR working mechanism, i.e., how will BPR provide outreach, what staffing BPR will support, etc. In addition, clarification and agreement should be reached regarding how LNG construction contractors will provide salaries to their employees and how these can be delivered to the villagers.

iii ��������������������������������������������������������������������Develop village-level savings/loans vehicles: Based on the activity above, a program promoting the establishment of the selected savings/loan vehicle can be established. The program will: (a) promote community awareness and ownership, and (b) provide training/capacity-building as required along with identifying local champions to promote the value of these services to the villagers.

iv ������������������������������������������������������������������Promote village-level household savings: Promoting individual and household-level use of the financial services will require workshops, use of media, etc., along with continuous deliberate or targeted reinforcement over a pre-determined period to institutionalize this concept. Consideration should be given to providing savings incentives (e.g., matching funds) for education, health, etc.

II Microenterprise

As described above, there are two possible avenues for microenterprise development:

 ����������������������������������������������������������������������Development of microenterprise to meet the common needs and interests of Bay-wide villages (e.g., fuel, food, inputs for livelihood activities). Some sectoral initiatives (particularly efforts to support development of the fisheries sector and women’s enterprise development) are also recommended.

156 BP Tangguh Integrated Social Program  ������������������������������������������������������������������Supporting the development of micro- and small enterprise to meet operational phase requirements of the LNG plant and to take advantage of the economic opportunities that arise from the ongoing development of the Tangguh Project and the kabupaten (i.e., increased hotels, restaurants, transport, etc.).

The following activities are to be implemented to support micro- and small enterprise development:

A At the village-level:

i��������������������������������������������������������������������� Analysis of village community needs and primary needs/constraints to household participation in established/new livelihood activities

ii����������������������������������������������������������� Community focus group discussions (FGDs) to assess history of microenterprise in village, what services/products are sought after and not yet widely available, constraints to microenterprise establishment and operation, existing entrepreneurs and why these people are entrepreneurs, etc.

iii�������������������������������������������������������������� FGD with existing entrepreneurs to identify opportunities and constraints to establishment of microenterprises meeting village community needs

iv���������������������������������������������������������� Assess capacity of existing (and potential) entrepreneurs

v�������������������������������������������������� Analysis of women’s microenterprise opportunities

B At the Bay-level:

i ������������������������������������Analysis of business opportunities:

a �����������������������������������������������������������Kabupaten government: Establish relationship with relevant departments of the kabupaten government

b ����������FGDs with kabupaten and kecamatan governments as well as community leaders regarding ongoing development of main towns (Bintuni, Babo, Arandai)

c������������������������������������������������������������������� Identification and description of possible local-level sustainable natural resource based enterprises and other potential enterprises

d Analysis of LNG operational needs (reference to Bontang experience will be useful)

ii ��������������������������Existing entrepreneurs in kabupaten towns (Bintuni, Babo and Arandai)

a Identification of existing entrepreneurs (refer to previous studies)

b �����������������������������������������������������������������FGD to discuss opportunities and constraints to establishment of micro- and small enterprises (refer to previous studies)

c �������������������������������������������������������������Assess capacity of existing entrepreneurs (refer to previous studies)

8 ISP Component Description 157 iii Ba��y-��le�v��������el entre�p������reneurs ���and �b������usiness �o��pp��������ortunity �w��or�ks���ho�p a ��Ov��er�v��ie�w: �R���oles �������and resp�����onsi�b������ilities �of kabupaten government, BPR and Tangguh supported micro- and small-enterprise development activities � PreentPresent reultresults ���of: o village-level analyses o Bay-wide business opportunities analysis o constraints to business development o capacity assessment c �D�e�v����elop �A����������ction Plan C Implementation of Action Plan i Establish institutional links to kabupaten government, BPR

ii Training: Based on assessment of capacity plan, implement training as appropriate. This may include administration, financial management, technical requirements, networking, etc

iii Business proposals: Support development of business proposals and support submission as appropriate to BPR

iv Mentor business operations including support of business planning, financial and administrative management, marketing, technical assistance, etc.

v Networking with growth centres (Sorong, Manokwari, Fakfak)

vi Quarterly Bay-wide entrepreneurs meetings

8.13.5 Implementation

Tangguh ISP will outsource the majority of this program. It is anticipated that a single contract will be awarded to a larger-scale NGO who can subsequently oversee and integrate various component activities supporting savings and enterprise development. Linkages will be made with the Bird’s Head Business Empowerment Program described in Section 8.6. Table 8.16 presents an activity schedule for the program. ISP/Tangguh anticipates that a Contractor will be identifiedby 2nd quarter 2006. Implementation will thus commence in the 3rd quarter of 2006.

Table 8.16 Activity Schedule for Microfinance and Micro- and Small Enterprise Development

Year Activity 2004 2005 2006 2007 2008 2009 2010

microfinance

promote financial institution supporting S&L needs of community, potential entrepreneurs

develop village-level vehicles providing access to savings and loans

microenterprise

promote development of household and village- level microenterprises

promote micro- and small business capacity in Kabupaten Teluk Bintuni

158 BP Tangguh Integrated Social Program 8 14. Community Development – Community Action Plans

8 14. 1. Context

Implementation of the ESIA led to the identification of nine villages as being“ Directly Affected” by the Project. These villages were identified on the basis of various criteria including implementation of exploration phase seismic work, necessity of physical relocation, loss of land, proximity to the proposed development and the possibility of future impacts based on possible offshore development locations. As a consequence of this categorization the Project committed to facilitating the socio- economic development of these village communities. Project support for community-driven development in the Directly Affected Villages (DAVs) is delivered through the Community Action Plan (CAP) program.

8 14. .2 Objectives

Improved livelihoods of individuals, households and communities by strengthening the capacity to plan and manage their own development, leading to improvements in the physical, social and human resource capacity of the individuals and households

8 14. .3 Program Description

The Community Action Plan (CAP) program commits to providing IDR300 million per year per village (approximately US$30,000/year) for a period of ten years. The Project has various criteria to guide the use of the development funds including: (a) CAP funds will not be presented to the communities as cash; (b) release of funds will only occur in response to acceptance of a community-agreed proposal and work plan; (c) all use of funds is to be accounted for and is subject to both community and Project review. Communities that do not use their allocation in the one-year will have these funds carried over for use in subsequent years.

The ISP Community Development team is responsible for facilitating the implementation of the CAP program. Implementation involves a Community-based Planning exercise whereby the ComRel team member facilitates community consultations and consensus building on needs and priorities. Thereafter a proposal for the topmost priority is developed and, once reviewed by the Project, the community implements the project. Project completion may take between 2-6 months depending on the nature of the project.

Community implementation typically involves selection of a project manager, community organizing, budget administration, and material procurement. Depending on the project, external contractors with specific skills may be contracted to help mentor the project and develop human resource capacity within the village.

A wide range of projects may be suitable for funding through the CAP. Examples to date include public infrastructure (e.g., jetty, boardwalk), community businesses (shops), development of household water and sanitation systems, procurement of equipment (e.g., ketinting and fishing nets), training and capacity-building (e.g., maintenance and repair of ketinting, basic accounting

 The term “Directly Affected” is Project- and context-specific. Appendix C of the RKL (contained within the Project AMDAL) describes the Recognition Program for Directly Affected Villages

8 ISP Component Description 159 for business). Other possible uses of funds include literacy and numeracy training, recruitment of additional schoolteachers, scholarship programs, etc.

Finally, the ISP is also supporting various other community development initiatives that will focus on the DAVs. These include:

I Community-based radios: ISP will support the development of community- based radios for the Sebyar and Sumuri and perhaps also the Iraratu tribes. Such stations were piloted for the Sebyar in Arandai District and the Sumuri in Babo District in 2005 and, if successful, may also be established for the Irarutu in Babo in 2006. These stations have a limited broadcasting range of up to 15‑25 km depending on equipment and environment. Hence radio stations based in Sebyar/Rejosari, Tanah Merah and Babo should be able to reach the majority of the Sebyar, Sumuri and Irarutu respectively. The community radios will be owned and managed by the said tribes. Broadcasts will include local language and Indonesian language programming including music, news and information, sectoral development programming, etc.

II Water and sanitation: ISP will support the development of appropriate water and sanitation systems for DAVs and other villages in Kabupaten Teluk Bintuni. Water supply systems will seek to provide ready access to fresh water. Sanitation systems will seek to improve basic household and community sanitation conditions. Systems will consider technical, social and economic criteria with the aim of being replicated beyond the DAVs.

In many DAVs, interventions seeking to improve access to water have been implemented in 2005. In 2006, the initial focus will be on the completion of these village projects. Thereafter, ISP will seek to develop an approach to water and sanitation that (i) integrates water and sanitation interventions with the TCHU behaviour change work in the same area and (ii) develops local capacity that can provide water and sanitation infrastructure development services in the medium- to long-term.

III Timber utilization: �����������������������������������������������������������The ISP/Tangguh timber utilization program is designed with two objectives, namely: (i) the development of a legal, sustainable local supply of timber, the operation of which would provide resource-derived employment and incomes to local people, and (ii) the facilitation of linkages between timber produced from tree-felling activities on the LNG site and community infrastructure and enterprise activities in villages in Kabupaten Teluk Bintuni While these initiatives are being developed by ISP ((i) above) and other Project Units ((ii) above) in the first half of 2006, it is anticipated that these activities should be implemented on the ground in the second half of 2006.

160 BP Tangguh Integrated Social Program 8 15. Land Acquisition and Resettlement Action Plan (LARAP)

8 15. 1. Context

The Project has developed a Land Acquisition and Resettlement Action Plan (LARAP) to address the involuntary resettlement impacts associated with the Project. The Project Affected People have been identified as including:

 those affected by exploration-phase seismic work

 ���������������������������������������������������������������������������the resettlement-affected communities (i.e., physically relocated and host villages)

 people impacted by land acquisition

 �������������������������������������������������������������������communities and commercial enterprises that may be impacted by the establishment and enforcement of the marine safety exclusion zones

Exploration-phase seismic work implemented by Atlantic Richfield (ARCO) and British Gas (BG) between 1996 and 1998 caused temporary resettlement impacts in affected communities. Both companies carried out onshore and offshore activities. Onshore activities involved the establishment of transect lines, and required felling of sago palms, nipa palms and small-diameter forest trees. The communities where onshore activities were implemented experienced temporary impacts attributable to the Project.

The site selection process for locating the Tangguh LNG plant resulted in the selection of a site occupied by the Tanah Merah village community on the southern shore of Bintuni Bay. As the Project did not have recourse to eminent domain or expropriation all land acquisition was effected through negotiated settlement. Accordingly, consultations with the Tanah Merah community and land owning clans were conducted to clarify Project requirements and assess the willingness of the people to relinquish their lands and be relocated. As a result of the acquisition of land carried out by the Project, the Tanah Merah community, the ‘host villages’ of Saengga and Onar, and the land- owning clans were recognized as incurring permanent involuntary resettlement impacts.

The main Project-Affected People are the Tanah Merah community (comprising 127 households) who were relocated to Tanah Merah Baru (101 households) and Onar Baru (26 households) to allow development of the LNG plant as well as the two host villages of Saengga (94 households) and Onar (36 households).

Finally, the establishment and enforcement of marine safety exclusion zones in 2008 may impact upon communities and commercial fisheries enterprises access to, and harvest from, selected fishing grounds.

8 15. .2 Objectives

Resettled and host communities are assisted to sustainably improve and surpass their income, standards of living, and livelihoods (in real terms) over and above pre-Project (displacement) levels or expected levels without the Project.

 The Project’s Land Acquisition and Resettlement Action Plan (LARAP) is a comprehensive plan addressing the involuntary resettlement impacts of the Project. Readers who wish to focus on the Project’s involuntary resettlement program are referred to this document for more detail.

8 ISP Component Description 161 8 15. .3 Activities

The involuntary resettlement impacts of the Tangguh Project are described in the Project’s Land Acquisition and Resettlement Action Plan (LARAP). This document focuses on the land acquisition and resettlement activities with specific plans for replacement of assets and resources, livelihood reconstruction and mitigation of impacts.

Key program and activities described in the LARAP include:

 Land acquisition took place in 1999.

 ���������������������������������������������������������������������������The resettlement village of Tanah Merah elected to be resettled to two new replacement villages developed in Tanah Merah Baru and Onar Baru. The construction of the replacement villages commenced in January 2003 and was completed in June 2004. Physical relocation of the Tanah Merah community occurred in June/July 2004.

 ���������������������������������������������������������������������Construction in the host villages of Saengga and Onar Lama commenced after the resettlement villages were complete. The Saengga construction project commenced in October 2004 while the Dusun Onar community-based appropriate housing project commenced in early 2005. These projects should be completed within two years.

 �������������������������������������������������������������������The social and economic development activities associated with the resettlement program commenced prior to physical relocation of the Tanah Merah community and are scheduled to continue until 2009 at which time a completion audit will be conducted.

8 15. .4 Implementation

Tangguh ISP has a dedicated resettlement team responsible for implementation for the resettlement program. This team assumes primary responsibility for management, technical projects and social affairs. Implementation of technical projects is generally subcontracted to appropriate, qualified NGOs. A detailed implementation schedule covering the period 2002-2009 is provided in the Land Acquisition and Resettlement Action Plan.

8 16. Conclusion

This chapter has provided ISP program descriptions for the period 2006-2010. The ISP comprises 14 programs addressing various sectors at different levels within Kabupaten Teluk Bintuni and the Bird’s Head of Papua. Chapter 9 describes the ISP approach and resources dedicated to program implementation. The approach to program implementation involves a combination of direct management and implementation and outsourcing to Papuan, national and international NGO (and other) contractors. Chapter 10 describes the budget. Chapter 11 describes the monitoring and evaluation framework for the programs.

162 BP Tangguh Integrated Social Program 9 Project Implementation

9 1. Introduction

This chapter describes the Project approach to implementation of the programs outlined in Chapter 8. The first section describes the overall approach to program implementation and provides a summary of the primary actors responsible for implementing each of the ISP programs and/or components. This is followed by an overview of the stakeholders involved in the implementation of ISP programs and their respective roles and responsibilities. A final section provides a description of Project resources dedicated to implementation of the ISP.

9 .2 Implementation Framework

The Tangguh Project has established an ISP Unit to manage and implement ISP programs. Overall management of the ISP is based in the Project and national headquarters of BP in Jakarta. At this level, primary responsibilities are: (a) management of the ISP; (b) program development; (c) budget management, and (d) links with the Tangguh Project and the national BP Indonesia operations.

Program development staff assume primary responsibility for the design of ISP programs. Programs are either implemented by ISP or outsourced to contractors. Table 9.1 (page 164) presents a summary of plans for program implementation.

Full outsourcing of programs may involve: (i) ISP becoming a contributing partner to an existing program to be implemented in the Project’s geographical area, e.g., IFC, USAID, etc., or (ii) the letting of a specific contract to implement the ISP program. With regard to the former, before entering any partnership, ISP assesses the program and experience of the potential partner. Where common objectives and synergies are identified, ISP then develops specific agreements pertaining to program implementation and provision of ISP support. With regard to the latter case, ISP identifies potential contractors and assesses their experience and programs. Potential contractors are then asked to submit a proposal for consideration.

9 Project Implementation 163 Table 9 1. Summary of Primary Responsibilities for ISP Program Implementation

Primary Responsibility for Ref Program Implementation P1 Revenue Management Revenue Management ISP and G&EA/Tangguh Governance and Capacity-building USAID, UNDP BH1 Civil Society Strengthening and Strengthening of Adat Institutions

Civil Society Strengthening ISP/Tangguh and partners Strengthening of Adat Institutions ISP/Tangguh and contractors BH2 Bird’s Head Business Empowerment phase I IFC phase II – institutionalization ISP/Tangguh, UNDP, KADIN BH3 Workforce and Industrial Relations ISP/Tangguh (together with contractors) BH4 Mitigation of In-migration and Adverse Impacts ISP Tangguh K1 Regency and Village Governance contractors and government K2 Integrated Community-based Security ISP/Tangguh and contractors K3 Health ISP/Tangguh and contractors K4 Education basic education contractor and government ccholarships contractor and government direct assistance to DAVs ISP/Tangguh and education service providers K5 Vocational Training construction and operations of vocational training centre, Arandai contractor

regional vocational training centres existing institutions managing participation of kabupaten population ISP/Tangguh and government K6 Women’s Empowerment ISP/Tangguh and contractors K7 Microfinance and Microenterprise contractor DCA1 Community Action Program/Community Development (DAVs) ISP/Tangguh DCA2 Land Acquisition and Resettlement Action Plan (LARAP) ISP/Tangguh and contractors

164 BP Tangguh Integrated Social Program Where ISP assumes primary responsibility for managing program delivery, the program is assigned a program manager who assumes overall management responsibility. Together with the program development staff, the program manager develops an implementation framework addressing the goals and objectives of the program and defining activities, an activity schedule, an annual implementation plan, monitoring and evaluation requirements, and the need for outsourcing to support implementation. Typically even programs managed in-house involve considerable outsourcing of work to local contractors. Such outsourcing involves the development of a Terms of Reference and identification of suitable Contractors. Potential Contractors submit proposals from which one is selected to implement the program component.

At the field-level, a kabupaten-level ISP management unit oversees delivery of kabupaten-level program management and implementation. Further, to support Bird’s Head and field-level program implementation, ISP has established Bird’s Head, Kabupaten Teluk Bintuni and field-level bases as appropriate. Specifically, the Project has established liaison offices in each of the regional centres in the Bird’s Head (Fakfak, Sorong and Manokwari) as well as in Bintuni.

In addition, the ISP Unit also comprises a number of supporting groups including: (i) a monitoring and evaluation team assuming responsibility for ensuring appropriate and regular reporting, monitoring and evaluation; (ii) a government and external affairs (G&EA) group responsible for building and managing government relations in Kabupaten Teluk Bintuni as well as the regional centres (Fakfak, Sorong, Manokwari); (iii) a community relations (ComRel) team that assumes primary responsibility for maintaining relations with communities in the Bay. Both the G&EA team and the ComRel teams play critical roles in networking, stakeholder consultation and coordination, and facilitating the entry of ISP programs, and; (iv) a communications team responsible for development of IEC media supporting program implementation as well as guiding corporate communications pertaining to the Tangguh Project.

9 .3 Project Resources

9 .3 1. Human Resources – The ISP Team

9 .3 1. 1. Overview

As described above, the ISP assumes responsibility for: (a) management of ISP policy and programs; (b) development of programs and, where appropriate, contract management of program implementors; (c) implementation of programs; (d) monitoring and evaluation of programs (e) government and community relations, and (e) communications. To meet these responsibilities the ISP Unit has identified the human resource needs and recruited personnel to the ISP team. Figure 9.1 (page 166) presents the ISP organizational chart. Table 9.2 (page 166) presents a breakdown of staff numbers by roles and responsibility.

9 Project Implementation 165 Figure 9.1 ISP Team Organizational Chart

VP INTEGRATED SOCIAL PROGRAM (JKT)

PAPUA ADMIN ASSISTANT RELATIONS (JKT) SR. ADVISOR (JKT)

INT’L STANDARD ISP PERFORMANCE ISP PAPUA DEVELOPMENT COMMUNICATION COMPLIANCE MANAGER MANAGER SPECIALIST PRODUCT MANAGER ADVISOR

DEVELOPMENT BUDGET & CONTROL PAPUAN COMM. SUPV. SPECIALIST/ OFFICER (JKT/PAPUA) PROGRAM DEVELOPMENT

MONITORING & PROGRAM COMMUNICATION EVALUATION DEVELOPMENT FIELD OFFICER (JKT/PAPUA)

ICBS CAP. ISP FIELD TEAM IN-MIGRATION NGO LIAISON GOV’T EXTERNAL BUILDING LEADER CONT’L OFFICER AFFAIRS PROG. OFFICER SPECIALIST SUPERVISOR

GOVERNMENT LIAISON OFFICER GRIEVANCE LOGISTICS/ FIELD ACCOUNTING OFFICER ADMIN.

TCHU ADVISOR WORKFORCE & COMM. LIAISON SUPV. COMM. DEV. SUPV. RESETTLEMENT SUPV. EDU. SUPPORT & RELIGIOUS LIAISON INDUSTRIAL REL. (DAV CAPS PRGM) (LARAP) VOC.ATIONAL OFFICER SUPV. TCHU TRAINING (BABO) COORDINATOR (BABO) COMM. LIAISON COMM. DEV. TECHNICAL LNG PROJECT OFFICER OFFICER SPECIALIST SUPPORT

INDUSTRIAL REL. VILLAGES REPS COMM. DEV. OFF. SOCIAL SPECIALIST SPECIALIST (LNG SITE) WFM OFFICER VILLAGE FACILITY SUPV. WFM ADMIN. & DATA BASE SAENGGA PROJ. (BABO) SUPPORT

Table 9 .2 Breakdown of ISP Staff by Roles and Responsibility

No Prog Ref Responsibility Qty

1 Management 4 2 Support 3 3 Program Development & Contract Management 2 4 Program Implementation P1 Revenue Management 1 BH1 NGO Relations and Strengthening of Adat Institutions 1 BH3 Workforce Recruitment and Industrial Affairs 6 BH4 Mitigation of In-migration & Adverse Induced Impacts 1 K2 Integrated Community Based Security 1 K3 Health 2 K4 and K5 Education and Vocational Training 1 DCA1 Community Action Program (CAPs) in Directly Affected Villages (DAVs) 6 DCA2 LARAP (Resettlement-Affected Villages) 5 5 Performance Mgr, Budget and Monitoring and Evaluation 3 6 Grievance Tracking and Resolution 1 7 Government and External Affairs 1 Tangguh Liaison Officers 5 8 Community Liaison 13 9 Religious Affairs Liaison Officer 1 10 Communications 3 TOTAL 60

166 BP Tangguh Integrated Social Program 9 .3 1. .2 Roles and Responsibilities

The ISP organization is comprised of 14 functional groups. These are:

1. Program Development, with responsibility for designing short- and medium- term sectoral community development programs and for long-term capacity- building and partnership programs targeting government and a wide range of civil society 2. Civil Society and Strengthening of Adat Institutions, responsible for providing management oversight to these programs 3. Workforce Recruitment and Industrial Relations, with responsibility for: (i) implementing Tangguh Project commitments to prioritizing employment of Papuans and to providing training to enable more meaningful and rewarding Papuan participation in Project development and (ii) responsibility for monitoring Tangguh contractor compliance with AMDAL and government labour laws 4. Mitigation of In-migration and Adverse Induced Impacts, with responsibility for managing the program 5. Integrated Community-based Security, with responsibility for establishing a Papua-based organization capable of managing the delivery of security services to the Project and ensuring establishment of community-oriented policing systems in Kabupaten Teluk Bintuni

6. Tangguh Community Health Unit, with responsibility for design and implementation of development and assistance programs in the health sector 7. Vocational Training and Education, with responsibility for managing the vocational training and education programs 8. Community Development, with responsibility for implementation of Community Action Plans (CAP) 9. Resettlement Team, with responsibility for implementation of Tangguh Project obligations specific to the Resettlement-affected Villages of Tanah Merah, Saengga and Onar 10. Performance Management and Monitoring and Evaluation, with responsibility for developing and maintaining systems for Project-independent data collection and analysis enabling objective assessment of development program economic and social outcomes 11. Grievance Tracking and Resolution, with responsibility for grievance tracking and resolution 12. Government and External Affairs, with responsibility for establishing and maintaining close links to district, regional and provincial governments; promoting the involvement of religious, adat and NGO organizations in the Project’s social commitments; facilitating processes related to obtaining government permits; building the capacity of Bird’s Head businesses to enable greater participation in the Project; and communicating on a regular basis with all stakeholders within the Province of Papua 13. Community Relations, with responsibility for ensuring high quality communication to and from stakeholder communities and for facilitating entry to the communities for development program implementation 14. Papuan Communications, with responsibility for delivery of Project messages to government, NGO and other civil society stakeholder groups, and the community through a variety of media including print, radio and the web

9 Project Implementation 167 9 .3 .2 Other Resources

ISP implementation relies upon the broader Tangguh Project logistical support framework that includes a chartered aircraft that flies from the Tangguh Project base of operations in Babo, Kabupaten Teluk Bintuni to the regional centres; office and support facilities (i.e., communications) at the Project’s base in Babo, and marine transport around the Bay. In addition, as indicated above, ISP has established offices in the regional centres of Fakfak, Sorong, Bintuni and Manokwari.

9 .4 Implementation Partners

9 .4 1. Government

Project relations with government involve a broad spectrum of activities including:

(a) Awareness-building, information sharing and progress reporting: There is a need for continuous interaction with all levels of government to build awareness, ensure understanding and in general, keep government stakeholders up-to- date regarding project activities. It is important to note that the different levels of government do not act as a single stakeholder. Rather governments in neighbouring regencies and at different levels have differing interests in relation to the development of the Project and its impacts (i.e., potential for participation, benefit from and occurrence of adverse impacts).

(b) Permitting: Compliance with Indonesian laws and regulations requires the Project to secure a wide range of permits across sectors, from various departments, and from the regency, provincial and/or national levels of government.

(c) Consultation, Partnership and Joint Implementation: ISP programs involving delivery of basic needs (i.e., health, education) as well as those directly relevant to government (i.e., governance programs) need to ensure consultation, coordination and partnership with relevant government departments to ensure efficient delivery of programs, shared ownership and responsibility, and their medium- to long-term sustainability. As an example, the Diversified Growth Strategy initiated by the Project in 2002 is now owned and supported by the national, provincial and regency levels of government. Similarly, a framework agreement will be developed with the Kabupaten Teluk Bintuni government to ensure government support, and hence efficient delivery, of programs.

Implementation of the majority of ISP programs requires government support. The various programs require different forms of support. While some programs merely seek endorsement from the government, others seek to engage government as an active partner in implementation. Programs targeting sectors which are the primary responsibility of government (i.e., health, education) are reliant upon effective government input to achieve sustainable outcome. Table 9.3 summarizes the type of government support required by ISP programs.

168 BP Tangguh Integrated Social Program Table 9 .3 Dependence of ISP Program Implementation on Government Support

Ref Program Role of government

P1 Revenue Management • coordination with central and provincial government on all aspects of revenue management • support and participation of Bird’s Head and Kabupaten Teluk Bintuni governments in all aspects of governance and capacity-building BH1 Civil Society Strengthening and • support and participation of Kabupaten Teluk Bintuni Strengthening of Adat Institutions government for strengthening of adat institutions, especially as government is a key stakeholder with whom adat institutions will interact BH2 Bird’s Head Business Empowerment • support of government in regional growth centres and Kabupaten Teluk Bintuni BH3 Workforce and Industrial Relations • support of government in regional growth centres and Kabupaten Teluk Bintuni • support of government in developing legislation favourable to ensuring participation of Papuan people • active participation of government Departments of Manpower in regional centres and Kabupaten Teluk Bintuni BH4 Mitigation of In-migration and Adverse • support of government in promoting awareness and Impacts understanding of concerns

• support of government in developing legislation aimed at mitigating spontaneous in-migration and addressing adverse induced impacts K1 Regency and Village Governance • support and active participation of Kabupaten Teluk Bintuni government in developing and implementing program K2 Integrated Community Based Security • support of government and relevant bodies K3 Health • health department to define sector strategy • health department facilitates stakeholder workshops • relevant government department works with stakeholders to identify sustainable solutions to core problems affecting achievement of health sector outcomes K4 Education • relevant government department to define sector strategy • relevant government department facilitates stakeholder workshops • relevant government department works with stakeholders to identify sustainable solutions to core problems affecting achievement of education sector outcomes K5 Vocational Training • support and partnership with government to establish vocational training centre in Arandai K6 Women’s Empowerment none K7 Microfinance and Microenterprise • support of government department to establish formal savings bodies and BPR DCA1 Community Action Program/ none Community Development (DAVs) DCA2 Land Acquisition and Resettlement Action • participation of government in initial consultations and Plan (LARAP) negotiations pertaining to acquisition of land

• support of government in all matters pertaining to resettlement, especially integration of new settlements into existing institutional environment

9 Project Implementation 169 9 .4 .3 NGOs

As indicated, ISP program implementation involves both in-house implementation and outsourcing. As a consequence, the Project looks to external sources of expertise to implement specific programs or components thereof. Accordingly programmatic links to Papuan, Indonesian and/or international non-government organizations occurs in the majority of programs.

The mechanism by which NGO contracts are established involves:

(i) definition of a Terms of Reference in support of a specific program or a subset of a program’s objectives

(ii) identification of suitable candidate NGOs and request for submission of proposals; suitable NGOs defined in terms of sector expertise and experience working in Papua or similar environments

(iii) review of proposals and selection of best proposal

(iv) establishment of a contract with the selected NGO

(v) monitoring of NGO implementation, and

(vi) review of monitoring and evaluation (M&E) to ensure program objectives, etc. are being achieved

In relation to Papuan NGOs, ISP has adopted a policy of engagement and capacity building. Specifically, if Papuan NGOs lack the expertise, experience and/or resources to compete for a contract, non-Papuan NGOs competing for the contract will be required to seek local partners and include capacity-building as part of their Terms of Reference.

9 .4 .4 Community Participation

While recognizing the short-term advantages of delivering immediate and direct benefits to the target beneficiaries, it has been demonstrated that substantial investments in capacity-building are required to allow the population to participate in and derive sustainable benefit from the economic development that the Project will induce. It is on the basis of this analysis that the ISP programs generally combine delivery of direct and immediate benefits with capacity building initiatives that target medium- to long-term sustainable outcomes.

Examples of how programs incorporate individual, household and community consultation and participation include:

 Community Action Plan program aimed at the Directly Affected Villages (DAVs): implementation of the program relies on community mapping of needs and priorities to identify village-level programs. Once priorities are established and village-level projects designed, implementation typically involves participation from the community. For example building of boardwalks, bridges, jetties etc relied on active participation of male household members. Similarly training in sewing, production of snack food, etc engaged female household members as program participants.

 Resettlement Program for Resettlement-Affected Villages, where establishment of village-level resettlement committees provided the forum for regular consultation with the resettlement team. Specific programs implemented as a result of these consultations (e.g., prawn harvesting, boat building, motor repair,

170 BP Tangguh Integrated Social Program post-harvest processing of marine produce, agriculture, etc.) relied on active participation of the target population.

9 .5 Conclusion

This chapter has set out the ISP approach to program implementation and the resources dedicated their delivery. The remote and under-developed location of the Project requires substantial investments in human resources and logistics to ensure delivery of the programs.

Program implementation involves partnership with various other stakeholders including communities, NGOs and government. Furthermore, at the field-level there are significant logistical constraints to implementation. Taken together these factors may cause significant delays in program implementation and, in this way, the rate of expenditure as outlined in the budget. Chapter 10 presents the ISP budget.

A monitoring and evaluation framework has been designed and will be implemented to ensure that the ISP achieves its goals and objectives. The monitoring and evaluation framework is described in Chapter 11.

9 Project Implementation 171 172 BP Tangguh Integrated Social Program 10 ISP Budget

10 1. Introduction

This chapter presents the budget for the Integrated Social Program. The ISP budget is presented as a five-year budget covering the period between 2006 and 2010. Nonetheless to reflect the fact that program implementation is ongoing, planned expenditures in YR2005 are also presented.

10 2. Budget

10 2. 1. Total Budget

Table 10.1 presents a summary of the five-year Integrated Social Program budget for the period 2006-2010. The Integrated Social Program budget for the period 2006-2010 totals $58,259,000 (which includes the Land Acquisition and Resettlement Action Plan (LARAP) budget for the period 2006 to 2009). Total expenditure to date (from 2001-2004) on ISP programs is US$18,700,000.

10 2. 2. Program Budgets

The budget can be broken into three specific components, namely programs (59.6%), project and program support (5.2%) and staff (35.2%). Nine per cent of the budget is allocated to the Bird’s Head programs while 35.3% are allocated to programs directed to Kabupaten Teluk Bintuni. Within Kabupaten Teluk Bintuni, ISP programming focuses on three basic development sectors—namely health, education (including vocational training) and governance—which together draw 77% of the Kabupaten Teluk Bintuni budget (or 27.2% of the total budget). Finally, two Project-specific programs, namely the DAV CAPs program and the Resettlement program, represent substantial program commitments (i.e., 8.7% and 6.4% respectively).

 Budget subject to GOI approval  Unless otherwise stated all percentages are reported in terms of total budget

10 ISP Budget 173 10 .2 .3 Financing

The Tangguh Project finances the majority of programs in full. There are only two programs being implemented with partners where the Project budget does not reflect the total cost of the program. These programs are:

(i) Government capacity-building in the Bird’s Head:

(a) The Project is anticipating establishment of a public-private sector partnership with USAID to jointly fund the implementation of the USAID Local Governance Support Program (LGSP) in regencies in the Bird’s Head of Papua. The estimated cost of the program is US$1,000,000 per year for three years. While USAID and ISP/Tangguh are currently discussing the terms of an agreement, the ISP budget provides commitments for ISP to provide 50% of the budget.

(b) The UNDP Capacity 2015 – Partnerships for Sustainable Development in Papua Program is currently being implemented in Papua. In the Bird’s Head region of Papua, the UNDP program has four components, namely (i) networking between stakeholders; (ii) development of legislation to support mega-projects; (iii) Bird’s Head Business Empowerment, and (iv) the development of spatial plans for Papua. Coordination between the UNDP and the Tangguh Project has resulted in the definition of a common set of objectives and an MoU whereby Tangguh ISP will support the program. The total budget for the UNDP program is US$1,225,000 for three years, of which ISP/Tangguh will contribute US$600,000 (i.e., US$200,000 per year for a three year period).

(ii) Bird’s Head Business Empowerment: The IFC PENSA program targets small and medium enterprise development in various sectors across eastern Indonesia. One component of the program focuses on enterprise development associated with oil, gas and mining industries. IFC, UNDP and ISP/Tangguh have agreed to jointly fund the implementation of the program for a maximum period of three years subject to program outcomes. The total cost of the program is estimated to be US$450,000 per year for three years. ISP/Tangguh will contribute US$150,000 per year to the program.

In addition, the ISP Civil Society Strengthening program is seeking to coordinate with similar World Bank and UNDP initiatives, although the program is not contingent on their support. Finally a number of programs (i.e., health, education) are seeking to develop public-private sector alliances whereby both the public and private sectors contribute to the sector or program. While the ISP health and education programs described in this document are fully financed by ISP/Tangguh, the development of such alliances will increase the level of sectoral program investment in the Bird’s Head, will expand the scale and/or geographical scope of sectoral activities, and allow various forms of consultation and synergies to be developed between similar programs.

10 .2 .4 Sustainability

Previous chapters have described the Papuan Special Autonomy Law and its provisions for increased allocation of revenue derived from natural resource extraction in Papua to be retained by the Province. With regard to gas production, the PSAL stipulates that for the first 25 years the GOI Project-derived revenue will be shared between Papua (70%) and the Indonesian central government (30%). After

174 BP Tangguh Integrated Social Program 25 years, gas-derived revenue will be shared between Papua (50%) and the Indonesian central government (50%). The PSAL further specifies that 30% of this revenue is to be spent onthe education sector and 15% of revenue be spent on delivery of health services.

An underlying assumption guiding ISP program development and implementation is that through the Papuan Special Autonomy Law (and its provisions regarding the retention and use of gas sector derived revenue flows), the revenue generated as a consequence of the Tangguh Project may contribute substantially to provincial income, and thereby provide the potential basis for the further social and economic development of Papua, including enabling the government to make increasing contributions to sectoral development interventions initiated by ISP. While the political situation remains dynamic, implementation of the Papuan Special Autonomy Law remains uncertain. Nonetheless, in relation to the sustainability of ISP programming it is important to note the following points:

 �������������������������������������������������������������������������������during the cost-recovery and debt repayment period revenue flows to Papua will be minimal

 �����������������������������������������������������������������������������������irrespective of the specific application of the PSAL and its provisions pertaining to revenue flows, other political changes including the establishment of new provinces, regencies and districts justify substantial investment in government capacity-building programs that help the government better serve its constituencies; such capacity-building will further assist government to sustainably utilize increased revenues if and when they eventuate

 kabupaten-level programs in health and education will work together with government to identify appropriate bases for incorporating sustainability concerns into implementation. ISP/Tangguh will not support program design and implementation that encourages long-term dependency on the Project

 ������������������������������������������������������������������������������in light of the uncertainty described above regarding potential revenue flows and their application, the Tangguh Project is committed to financing the current ISP program 2006-2010. Beyond 2010, the Tangguh Project, together with government, will provide ongoing support to socio-economic development initiatives based on an assessment of needs and risks as well as the evolving political situation

10 .3 Conclusion

The Tangguh Project is a stakeholder in the ongoing development of the kabupaten, the Bird’s Head region and of Papua generally and the Project seeks to develop partnerships with relevant stakeholders so as to actively participate in this process. The Tangguh Project itself will support a broad range of social and economic programs focusing on the participation, benefit and development of Kabupaten Teluk Bintuni (and its indigenous population) but simultaneously looking more broadly to the Bird’s Head and Papua as a whole.

The Project is directly funding the majority of programs described in this document. The total cost of these programs for the period is US$34,748,000 representing 60% of the ISP budget for the period. In addition ISP/Tangguh seeks to promote further socio-economic development programming in the Bird’s Head by linking with multilateral donors, NGOs, etc. Hence through a combination of direct investment and providing a focus on Papua and the Bird’s Head in particular, the Project will contribute substantially to development within the region.

10 ISP Budget 175 Table 10 .1 Summary of Integrated Social Program Budget (2006-2010) % 7.0 1.1 1.7 0.4 4.0 3.1 0.6 5.9 3.0 3.8 0.3 3.1 8.7 6.4 10.5 193 193 250 650 330 975 6,110 6,110 4,103 4,103 2,217 2,217 2,350 1,828 3,438 1,750 5,056 1,800 3,700 Total 50 30 50 37 910 910 100 100 418 418 185 333 638 350 703 350 500 1,044 2010 50 30 50 37 910 910 100 100 135 135 418 418 333 681 350 350 800 800 1,044 2009 50 68 37 150 150 418 418 630 359 681 350 235 350 800 800 1,035 1,044 2008 50 73 37 150 150 418 418 185 830 359 686 350 350 900 800 1,460 1,044 2007 50 88 47 150 150 830 443 751 350 545 235 879 900 400 800 1,795 2006 - - 30 80 115 115 410 410 180 180 209 209 350 991 648 862 400 1,582 2005 Revenue Management Revenue Capacity-building (Bird's Head) Government Civil Society Strengthening Business Empowerment and Industrial Relations Recruitment Workforce Induced Impacts Adverse Mitigation of In-Migration and Capacity-building Gov't Village Kabupaten, District & Integrated Community-based Security Community-based Health Education Training Vocational Empowerment Women's Savings Micro-inance & Personal Microenterprise Plans (CAPs) Action - Community DAVs (RAVs) Villages Resettlement-Affected Program Papua P1 P1 Bird's Head BH1 BH2 BH3 BH4 Bintuni Teluk Kabupaten K1 K2 K3 K4 K5 K6 K7 K7 Assistance Direct Community DCA1 DCA2

176 BP Tangguh Integrated Social Program Table 10 1. Summary of Integrated Social Program Budget (2006-2010) cont . % 1.7 2.6 0.9 5.2 59.6 64.9 35.1 100.0 550 3,050 1,500 1,000 Total 37,798 37,798 34,748 34,748 20,461 58,259 200 200 5,698 5,898 2,861 2010 8,759 100 100 250 550 200 6,088 6,638 3,353 2009 9,991 150 150 750 400 200 7,757 7,757 7,007 7,007 4,153 4,153 2008 11,910 11,910 150 150 750 400 200 7,692 7,692 8,442 5,000 2007 13,442 150 150 450 200 800 ,157 8,263 9,063 5,094 2006 14

100 100 121 121 350 571 4,100 4,100 6,066 6,637 2005 10,737 10,737 External Communications Affairs & External Government Monitoring & Evaluation Program General a b c Cost Direct Program General Cost Budget Program Total Cost Staff TOTAL

10 ISP Budget 177 178 BP Tangguh Integrated Social Program 11 Monitoring and Evaluation

11 .1 Introduction

The Project is required to monitor the implementation, outcomes and impacts of the ISP and its component programs. Monitoring and evaluation serves two major functions. First it allows the Project to identify issues/changes needed in program implementation. Second it allows assessment of whether the ISP and its component programs are achieving their stated goals and objectives. In both cases the information gathered will allow the Project to adapt program design and implementation in a timely manner.

This chapter outlines the ISP monitoring and evaluation (M&E) framework. The M&E framework seeks to define the means by which the Project will assess the overall success of the ISP and its component programs. The framework requires: (i) the identification of suitable indicators; (ii) their measurement at appropriate intervals; (iii) the creation of mechanisms to analyze M&E data against a baseline and (iv) the establishment of a system to regularly respond to M&E results by adapting program design and/or modifying implementation arrangements.

11 .2 Monitoring and Evaluation Framework

The ISP monitoring and evaluation framework requires both internal and external monitoring and evaluation of the ISP programs. The objectives of internal monitoring and evaluation are: (i) to measure and report progress against ISP program activity schedules (i.e., to measure output indicators); (ii) to verify that program commitments are being delivered in full to affected people; (iii) to identify issues and develop corrective actions; (iv) to maintain and monitor effectiveness of the Project grievance tracking system, and (v) to ensure the Project meets its AMDAL compliance obligations. The objectives of external monitoring and evaluation are: (i) to provide independent verification of Project compliance with the ISP; (ii) to provide periodic objective assessments of ISP program implementation and their outcomes and impacts; and (iii) to identify issues and develop corrective actions.

11 Monitoring and Evaluation 179 Figure 11.1 illustrates the ISP internal progress reporting and M&E framework. The program development group defi nes programs in terms of their goals, objectives, activities, and appropriate M&E indicators and the requisite frequency of measurement. As program implementation (either internal or outsourced) occurs, monthly progress reports (reporting activity indicators) are provided to the ISP M&E group. Each program manager is also responsible for managing evaluation against outcome and impact indicators at appropriate intervals. Where this involves implementation of surveys of the programs’ target groups, ISP/Tangguh will utilize the research services of a Papuan university. The results of these M&E activities are also provided to the M&E group. These M&E results are also shared with fi eld management and the program development group who review the reports and discuss concerns regarding program implementation and/or outcomes with the Program Manager or party contracted to implement the program.

The ISP will also be subjected to semi-annual external monitoring and evaluation. External monitoring and evaluation will be implemented through a Lenders’ External Panel.

Figure 11.1 ISP Internal Monitoring and Evaluation Framework

ISP MANAGEMENT

Program Design FIELD MANAGEMENT Monitoring and Evaluation

M&E Indicators Progress Reporting M&E Reports

Program Implementation

Direct Implementation

Outsourcing

11.3 Defi ning Program M&E Indicators

Different types of indicators will be utilized to assess program delivery. These include:

• Input indicators measure resources in terms of people, equipment and materials that go into the programs described in the ISP.

• Process indicators measure the change in the quality and quantity of access and coverage of the activities and services.

• Output indicators measure the results of activities and services produced with the inputs. Examples of output indicators include: (i) creating and maintaining database for tracking employment; (ii) creating new economic opportunities providing alternatives for loss of income; (iii) numbers of people trained; a. o.

180 BP Tangguh Integrated Social Program • Outcome indicators measure the changes in behaviour, skills, incomes and capacity resulting from program activities and outputs.

• Impact indicators measure medium- to long-term changes in the living standards, behaviour and attitudes of the target group resulting from ISP programs.

In the near-term, the measurement of input, process and output indicators are feasible and important since these define whether the planned level of effort is being achieved and whether early implementation experience is in line with anticipated results. These indicators are captured by regular progress reporting. However the success of the programs and ISP as a whole is measured by outcome and impact indicators. These indicators establish whether the programs are having the intended results (outcomes/impacts) and whether these results are sustainable.

The Program Development and M&E groups will together specify:

(i) input, process and output indicators that reflect Project resource commitments and implementation plans for programs and activities

(ii) performance indicators (i.e., outcome and impact indicators) that allow the Project to assess the delivery and success of the aforementioned programs, and

(iii) the method and frequency of measurement

Table 11.1 presents a draft list of indicators that may be used for assessing program delivery. Where analysis of outcome and impact indicators require establishment of baseline data, each program will be responsible for assessing whether adequate baseline data exists and, where necessary, developing and implementing baseline data collection activities prior to further program implementation.

11 .4 The Monitoring and Evaluation (M&E) Unit

The ISP M&E group will be responsible for managing and coordinating internal reporting and monitoring and evaluation. ISP M&E group responsibilities include:

 ������������������������������������������������������������������������coordination with the program development group to ensure awareness and common understanding of program design and especially M&E requirements (i.e., output, outcome and impact indicators, reporting, type and frequency of formal M&E activities, etc.)

 ������������������������������������������������������������������������development of M&E calendar for all ISP programs and assurance that all programs (internal or external) meet their reporting and M&E requirements

 ����������������������������������������������������������������������collation and filing of progress and M&E reports for all ISP programs

 �������������������������������������������������������������������������review of progress and M&E reports with field management and the program development group and flagging of issues needing follow-up

 development and maintenance of grievance tracking and response system

 ���������������������������������������������������������������������������coordination with an external survey team contracted to implement periodic surveys to evaluate programs

 ���������������������������������������������������������������������������������coordination with external M&E team including facilitation of field work, access to progress and formal M&E reports, filing of reports, etc.

 development and timely submission of AMDAL compliance reports

11 Monitoring and Evaluation 181 The results of internal M&E activities (i.e., progress reports) will be reported in accordance with general Project norms for line reporting (i.e., monthly reports from program leaders to Tangguh management). The format and content of monthly reports will be discussed with management.

In addition each program manager will prepare annual reports to describe advances, identify emerging issues and outline priorities for the following year. These reports will: (i) summarize progress in the context of the overall program, including all inputs and outputs attained during the year; (ii) discuss challenges and issues pertaining to program delivery and outcomes and where appropriate describe actions for changes; (iii) present an annual implementation plan for the following year including alternative actions, inputs to program budgets, etc.

Finally ISP/Tangguh will provide Lenders with six-monthly progress reports.

11.5 External Monitoring and Evaluation

As indicated, a Lenders’ External Panel comprising social development experts will be contracted to provide objective periodic assessments of ISP program implementation, program outcomes and impacts, and to verify compliance with the ISP. Activities of the external team will include:

 review internal monitoring and reporting procedures as well as internal monitoring records so as to identify any areas of non-compliance, recurrent problems, or potentially disadvantaged groups or households

 review grievance records for evidence of significant non-compliance or recurrent poor performance in program implementation

 discussion with Tangguh ISP staff responsible for program delivery

 interview a cross-section of affected households to gauge extent to which project-affected people’s living standards and/or livelihoods have been affected as result of program implementation

 assess overall compliance with international standards

 conduct a Project mid-term review during the latter half of year three of the ISP implementation

The external team will implement M&E activities on a semi-annual basis with the objective that each program is reviewed once every year. Individuals on the team will be assigned to and thus focus on different programs. A trip report will be prepared synthesizing the overall assessment of ISP progress after each visit while at the end of Year 3 a mid-term review report will be issued instead. Reports will be provided to Project management and will also be made available within BP and to the ADB.

11.6 Conclusion

As demonstrated in this chapter, ISP has a comprehensive monitoring and evaluation framework to verify implementation and performance. The monitoring and evaluation activities combined with the resultant M&E reports will be utilized to continuously improve upon program design and delivery and simultaneously demonstrate Project compliance with commitments.

182 BP Tangguh Integrated Social Program Table 11 .1 M&E Indicators for Assessing ISP Program Delivery and IMPACTS OUTCOME (data collected at spec i fied ntervals) participation of and coordination between awareness, improved stakeholders as it relates Law Autonomy Special clarity of application Papuan management to revenue strengthened understanding, and application of increased ownership the DGS tools (capacity-building trainings etc.) shared; increased media skills capacity information increased Project and engaged public in informed to report accurate information; decision-making at all scales GOI; of strategic long-term planning by institutionalization hired based on budgeting; staff transparent performance-based and promotions based recruitment standardized competencies; staff on standardized competencies and supported regional spatial land use a completed, locally owned responsible and future current for the framework plan that forms Bird's Head sectors and sustainableall Papuan decision-making for

kabupaten INPUT/PROCESS/OUTPUT (data collected/reported monthly) paper describing the finance law, background of the fiscal decentralization and the provisions pertaining Law to Autonomy Special Papuan management revenue stakeholders consultations with relevant coordination with GOI and UNDP DGS stakeholders and use of media to promote development awareness programs that demand-driven and deliver develop capacity within the government build sought after bodies at the pace, depth and scope that will and of knowledge result in successful transfer tools the DGS through multi-sectoral institutionalize partnerships including GDAs, capacity-building Interventions, with government UN and targeted mentoring WB, partners like with regional and national partners opportunities local engagement of all sectors in the and implementation of the regional development spatial land use plan as it encompasses all the elements and groups governance the Papuan Special the Papuan vis a Program Management Revenue Management Revenue of revenue stakeholder awareness improved management ( Head and the Bird’s Law) Autonomy Strategy (DGS) Growth Diversified Governance capacity to manage government improved decision-making regarding finances, budgets, planning, ethics and transparency in and operations, management, hiring of staff use of public resources in a transparent and and efficient equitable manner effective a b No 1 Ref PAPUA P1

11 Monitoring and Evaluation 183 Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) adat leadership recognized leadership recognized adat leaders adat stakeholders throughout Bay achieve clarity on roles and achieve stakeholders throughout Bay awareness, knowledge, documentation, knowledge, etc awareness, and IMPACTS OUTCOME (data collected at spec i fied ntervals) resource centre serves as a model centre and regional node linked to other centers of similar disciplines in the region and nationally CSOs and new apprenticeships for resource centre provide university graduates donor- practice; sharing best networking; serves for basis as website CSO linkages, etc. increased CSO capacity as reflected in scope and quality of projects; funding; scale and independent operation of CSOs ability to attract the grants build on civil society projects funded by strengthening training and capacity building; projects related to ISP programs and within the Bird's to development outcomes broadly relevant have Head context networking between CSOs leading to sharing of best improved practices, coordination, etc adat responsibilities consistent representative tribal and clan and other stakeholders clan, tribe, government by capacity of improved capacity of allocation and use of grants lead to improved institutions to tribal and clan level use of grants generates results relevance adat institutions institutions adat adat workshop INPUT/PROCESS/OUTPUT establishment of resource centre report on legal basis for kabupaten assessment of capacity of (data collected/reported monthly) establishment of NGO resource web-site number and type of trainings implemented; participation allocation and use of grants implementation of annual workshops stakeholder consultations consultations tribal and clan level number and type of trainings implemented; participation allocation and use of grants hak and

adat adat institutions in institutions adat institutions to institutions adat Institutions Adat Program Civil Society Strengthening Civil Society Strengthening increased capacity of civil society to represent and address their constituents for and work their needs Strengthening definition and understanding of the improved roles and responsibilities of relation to their tribal and clan constituencies, bodies and and non-government government companies other private-sector representativeness of improved amongst their tribal and clan institutions constituents capacity of improved manage their responsibilities including activities that strengthen culture, ulayat a b No 1 Ref BIRD'S HEAD BH1

184 BP Tangguh Integrated Social Program Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) and IMPACTS OUTCOME (data collected at spec i fied ntervals) and quantity) increase in local procurement (value increase in small and medium enterprises (SME) profits with SME-supplied goods and servicesend-user satisfaction SMEs transition to service sector needs and profit increased business, revenue targets achieved workforce and Papuan DAV absence of enterprise on periphery site of Project trends being reported describing equitableall participation by groups employment interested prospective incidence of ethnic disputes on site incidence of industrial disputes on site INPUT/PROCESS/OUTPUT assessment of contractors, demand, capacity of potential suppliers of implementation existence guidelines - definition recruitment content, quotafor systems of Papuan centres, cashless LNG site monthly summary reports reporting recruitment against origin and skill level (data collected/reported monthly) no. and type of trainings; participation rates mentoring of suppliers and/or adjusted management application of new on both the supply and demand side systems and Tangguh implementation of guidelines by Contractors, i.e., cashless site, closed camp and use of media to promote development systems of established recruitment awareness regular (frequent) multimedia updates clear, targeting local communities and their representative organizations ensuring current is shared and reducing the information spreading misinformation for opportunities resulting in unnecessary conflicts and use of media to promote cultural development and secure relations harmony Program Head Business Empowerment Bird’s Head business capacity of Bird’s improved business opportunities to compete for and operation of associated with construction LNG plant (i.e., supply of goods and services) to business of an approach institutionalization and capacity-building in the empowerment (enabling local Head region of Papua Bird’s businesses to take advantage of opportunities that arise as a result of the economic Head) of the Bird’s development Affairs and Industrial Recruitment Workforce of Management of an transparent, equitable, existence and management recruitment workforce AMDAL in line with Project systems commitments and ensure participation of local, Papuan in line Indonesian people on the workforce commitments AMDAL with Project and recruitment ensure that all workforce industrial relation practices comply with Indonesian regulations current and secure relations harmony promote cultural and between the workforce within the Project and Bird’s and the Bay the workforce, Project, Head communities No 1 1 Ref BH2 BH3

11 Monitoring and Evaluation 185 Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) and IMPACTS OUTCOME (data collected at spec i fied ntervals) legislation aimed at of new and/or development enforcement mitigating in-migration limited in-migration to vicinity of Project and capacity to monitor and respond in- increased awareness induced impacts migration and negative impacts limited incidence and/or mitigation of adverse of, lack absence of complaints from local individuals, households and impact of in-migrants communities re negative INPUT/PROCESS/OUTPUT (data collected/reported monthly) of GOI legislation review assessment of stakeholder position identification of responsible GOI departments workforce Project of of effectiveness verification aimed at polices and systems recruitment mitigating in-migration legislation pertaining of government development to in-migration and issuance of KTPs (residency cards) and use of media development Teluk implementation in Kabupaten of road-show Bintuni Sorong, centres (Fakfak, in growth workshops Bintuni Teluk and Kabupaten Manokwari) Babo, (Bintuni, establishment of Monitoring Fora villages) Arandai, resettlement-affected or seminars that clearly demonstrate workshop consequences of selling, and positive the negative leasing, land, homes and business locations to outsiders ) and civil society to kabupaten Program Induced Impacts Adverse and of In-migration Mitigation and GOI policies Project improved guidelines that reduce spontaneous in- area migration to the Project amongst GOI, civil awareness improved society and the community of the potential and scale of scale of in-migration, the nature project-induced impacts, and mechanisms management of impacts for available (village, capacity in government improved kecamatan and manage, monitor and respond to spontaneous in-migration and induced impacts No 1 Ref BH4

186 BP Tangguh Integrated Social Program Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) , young, adat and IMPACTS OUTCOME (data collected at spec i fied ntervals) capacity in strategic planning, increased government performance of strategic plans, etc. budgeting, administration, etc; development delivery of basic servicesimproved to regency constituency and ability to increased awareness civil society (villagers) have demand representative government plans; measurable of village development development in the delivery of the services,improvement their scope and equitable distribution amongst stakeholder sectors (i.e., handicapped, elders etc.) women, security of local securitycapable providing existence force services needs meeting Project consultation and coordination between securityincreased trust, stakeholders reporting and coordination on resolution of security improved incidents reduced incidence of security incidents INPUT/PROCESS/OUTPUT (data collected/reported monthly) no. and type of training; participants and use of media; village-level development presentations no. and type of trainings; participants no of women origin of employees; no. recruited; and no of men no. and type of trainings; participants no. of cross-visits; participants and use of media to build awareness development no of community meetings; location; participants establishment no. of of Security Fora; stakeholders; no. origin and gender of participants no. and frequency of meetings; participants; issues leaders), local government, leaders), local government, adat Program Governance Government Regency in strengthen the capacity of government relation to strategic planning, delivery of basic services and transparent to their constituency and accountable management Government Village and understanding of build awareness roles and responsibilities of the structure, amongst the community and government representatives elected village government enabling the population to be active, thereby (and participants in village-level informed well district and regency) government strengthen capacity of village government transparent and accountable to: (a) provide (b) develop government; village-level sustainable medium and longer-term plans leading to improved development delivery of services Security Community-based Integrated and managed a primarily locally developed the security capable of delivering force security needs physical Project’s delivery security of Project outcomes through and implementation of an development communitythat policing system effective and trust ownership, awareness, develops security links between various stakeholders (i.e., the community and the police) community-based Security Forum effective community leaders (including tribal, in which clan and representatives from the military and the police and industry representatives meet together to discuss security issues a b No 1 1 Ref and RAVs DAVs KABUPATEN, K1 K2

11 Monitoring and Evaluation 187 Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) and IMPACTS OUTCOME (data collected at spec i fied ntervals) mortality (KPC) Survey; infant rate; Coverage Practice, Knowledge, maternal mortality rate (KPC) Survey; adult mortality Coverage data; Practice, Knowledge, Tables. Life surveys population prevalence surveillance behaviour survey population-based surveillance data estimates TB prevalence monitoring for each village: attendance, village: attendance, each monitoring for INPUT/PROCESS/OUTPUT (data collected/reported monthly) and maternal mortalityinfant data Posyandu immunization, antenatal nutrition, childhood care, maternal tetanus immunizations, Iron A; village health profiles Vitamin supplements & surveys surveillance data, school adult mortality data program activity reports: condom and outreach rates coverage and HIV case notifications from project clinics STI program activity reports TB cases, completed clinic data: new workforce TB treatments TB program & Health department data: new TB treatments cases, completed improved health seeking and care giving improved limited impact of HIV/AIDS and STI behaviour Head and transmission in the Bird’s the capacity of the local improve community to deal with the HIV/AIDS epidemic improved access to quality maternal and improved reduction in malaria mortality rates transmission reduced HIV/AID and STI capacityin of health providers improved child health care services child workforce Tangguh and impacts on limited impact that the and conversely, of the has on the development workforce HIV/AIDS epidemic in Papua and to prevent Bintuni Teluk Kabupaten TB control improved health and nutrition status for for health and nutrition status improved the for risk-reduction behaviours improved TB workplace establishment of effective children <5 and women of reproductive age of reproductive <5 and women children population, especially at-risk groups Project Tangguh the Control program for Program Health Maternal & Child Health Program (i)  (ii)  (iii)  Malaria Control Program (i) reduction in malaria transmission rates (ii)  Program HIV/AIDS Prevention (i)  (ii)  (iii)  TB Control Program (i)  (ii)  a b c d No 1 Ref K3

188 BP Tangguh Integrated Social Program Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) and IMPACTS OUTCOME (data collected at spec i fied ntervals) (KPC) Survey Coverage Practice, Knowledge, (KPC) Survey Coverage Practice, Knowledge, (KPC) Survey Coverage Practice, Knowledge, project research (KPC) Survey Coverage Practice, Knowledge, (KPC) Survey Coverage Practice, Knowledge, planning and delivery of basic education servicesimproved performance completion rates; improved improved INPUT/PROCESS/OUTPUT (data collected/reported monthly) Infrastructure; Watsan program activity reports on monitoring biological water program activity reports - community outreach, program Watsan school village monthly notifications - each Infrastructure Watsan program activity reports on mortalityInfant data training and program activity reports, government capacity-building capacity assessment with education service capacity-building (training, providers; mentoring) with education service providers teachers; training for competency-based and living in rural working program for incentive of resource availability; level areas; improved SMP and SMA for scholarships increase access to adequate sanitation understandingscientific increase causes of of diarrheal disease of diarrheal reduction in reported rates of diarrhea reduction in reported rates of diarrhea disease in adults and children reduction if child mortality due to diarrheal reduction if child disease increase community capacity to prevent community confidence in local improved disease due to poor sanitation health services increase access to safe drinking water & drinking water increase access to safe of better access to and provision improved adequate sanitation in the DAVs quality health services in the DAVs Program Health (continued) & Sanitation Environment Program Water, (i)  (ii)  (iii)  (iv)  (v)  (vi)  Health Service Strengthening (i)  (ii)  Education of capacity to manage basic development Bintuni Teluk education sector in Kabupaten participation, completion and improved learning outcomes from basic education in Bintuni Teluk Kabupaten e f No 1 1 Ref K3 K4

11 Monitoring and Evaluation 189 Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) and IMPACTS OUTCOME (data collected at spec i fied ntervals) and productive increased participation rates in alternative, employment economically rewarding on LNG operations and employment readiness of national workforce workforce INPUT/PROCESS/OUTPUT (data collected/reported monthly) training; participation number of people training; type of training number of people participating in training; annual reports Program Training Vocational increased literacy and population have DAV numeracy skills possess a basic potential employees and skill set that enables them to awareness participate in regulated, wage-based safely during LNG construction offered employment population Bintuni Teluk the adult Kabupaten trade-sector skills that possesses relevant them to participate in the developing allow or regional growth of the Bay economy Sorong as Manokwari, centres (such completion of LNG following and Fakfak) related employment construction capable creation of a national workforce of assuming supervisory roles in the LNG operations organization No 1 Ref K5

190 BP Tangguh Integrated Social Program Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) and IMPACTS OUTCOME (data collected at spec i fied ntervals) as role models in the communities; recognized no. of women issues throughout the Bay; of women's awareness improved issues into village, district and regency level integration of women's planning including health and education participating and using increase in number of women progressive the skills from training decrease in number of incidents violence against women, supporting their daughters increase in the number of families primary and secondary in educations; numbers of women businesses of Papuan media stories reporting on the challenges no. of relevant as on the success stories of these women as well women learning graduating from high school; increased numbers of women labour; establishing trade skills and being engaged in wage micro- enterprise INPUT/PROCESS/OUTPUT (data collected/reported monthly) activities of Forum; Women's establishment of including throughout the Bay Forum Women's health, building (health, reproductive awareness to mitigate nutrition, education) and efforts aspects of in-migration and induced negative violence against women, impacts (i.e., HIV/AIDS, etc) no. and type of training; participation rates and use of media to promote development of importantin role of women awareness households, community and society (i.e., food gathering, production and preparation; child rearing; sanitation, health and nutrition, education, induced etc) and mitigation of the negative (i.e., HIV/AIDS, women to affect impacts likely etc) violence against women, training positions, vocational no. of scholarships, to/directed to micro-enterprise activities awarded women Program Empowerment Women's understanding and respect greater awareness, the rights, roles and responsibilities of for women as reflected in of women status improved greater participation in decision-making and management of resources at the household and community level recognition and mitigation of the negative in changes Project-driven impacts induced by and income levels patterns livelihood No 1 Ref K6

11 Monitoring and Evaluation 191 Table 11 .1 M&E Indicators for Assessing ISP Program Delivery (cont .) and IMPACTS OUTCOME (data collected at spec i fied ntervals) accounts established no. of savings annual rate of savings - household and investment use of savings no. of sustainablebusinesses established new to support village- economy needs, LNG operations and the developing level livelihoods improved community participation in selection of priorities improved capacity to plan, accommodate multiple interests of improved etc stakeholders, link with government, community participation in project implementation improved LARAP to Project refer INPUT/PROCESS/OUTPUT (data collected/reported monthly) institutions/ and access to savings availability vehicles and use of media development SMEs training for access to demand-driven and to trainings demonstrating the value linked loans necessity before of participating in savings are obtained no. of trainings, participation rates, etc. no. and typerates, etc. of loans, repayment implementation of community-based planning exercise sub-projects implementation of DAV delivery of planned budget allocation LARAP to Project refer Program enterprise and Micro Microfinance individual and household awareness, improved of and level vehicles, access to savings savings micro- and capacity to develop improved small enterprise that can meet the operational needs of the LNG plant and/or that responds arising from the ongoing opportunities to new within the occurring economic development Bay Plans (DAVs) Action Community of individuals, livelihoods improved households and communities by strengthening the capacity to plan and leading to development, manage their own social and in the physical, improvements human resource capacity of the individuals and households LARAP (RAVs) and host communities are assisted resettled and surpass their to sustainably improve income, standards of living, and livelihoods pre-Project and above (in real terms) over levels or expected (displacement) levels without the Project a b No 1 1 1 Ref K7 DCA1 DCA2

192 BP Tangguh Integrated Social Program