Technical Assistance Consultant’s Report

Project Number: 38479 April 2010

Republic of Indonesia: Regional Roads Development Project (Financed by the Japan Special Fund)

Annexes 6. Assessment of Vehicle Overloading 7. Poverty and Social Analysis 8. Draft Resettlement Framework

Prepared by MMM Group Ltd, Canada In association with Pt Guteg Harindo & Pt Bina Karya (Persero), Indonesia

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

All the views expressed herein may not be incorporated into the proposed project’s design. The contents of this report reflect the project design from early 2010, under a multitranche finance facility lending modality. The project design has been subsequently amended in 2011 and converted to a single project loan lending modality. Therefore the reader should be aware that the report contents and the final design of the Regional Roads Development Project do not directly correlate.

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TABLE OF CONTENTS

1. INTRODUCTION ...... 2 1.1 PURPOSE OF THIS REPORT...... 2 1.2 THE INDONESIAN ROADS SECTOR...... 2 1.3 INSTITUTIONAL ROLES AND RESPONSIBILITIES ...... 3 1.3.1 Government ...... 3 1.3.2 Private Sector...... 3 1.3.3 Other Stakeholders ...... 3 1.3.4 Donors...... 4 2. CURRENT GOVERNMENT INITIATIVES...... 4 2.1 ZERO PERCENT TOLERANCE ...... 4 2.2 WEIGH BRIDGE STATIONS IN JAVA AND KALIMANTAN...... 5 3. RELEVANT PROJECT BACKGROUND ...... 6 3.1 SUMATERA REGIONAL ROADS PROJECT...... 7 3.1.1 Pilot Project on Vehicle Weigh Stations ...... 7 3.1.2 Performance Incentives ...... 8 3.1.3 Staged Enforcement ...... 8 3.1.4 Summary and Conclusions of the SRRP Project ...... 9 4. PROPOSED MODEL ...... 10 4.1 INTRODUCTION ...... 10 4.2 INITIAL IMPLEMENTATION ...... 10 4.3 LOCATION OF WEIGH STATIONS...... 11 4.4 PERFORMANCE BASED CONTRACTS ...... 11 4.5 IMPACT ON MAINTENANCE COSTS...... 12 4.6 EXTERNAL PUBLICITY AND PUBLIC AWARENESS CAMPAIGN...... 13 4.7 MANAGEMENT OF WEIGH STATIONS...... 13 4.8 OTHER ISSUES ...... 14 4.9 LEGAL ASPECTS ...... 14 5. CONCLUSIONS ...... 15

LIST OF FIGURES

Figure 2-1 - Typical Overloaded Truck...... 5

LIST OF TABLES

Table 2-1 Overloading Violations ...... 5 Table 2-2 Weigh Station Status ...... 5 Table 3-1 Maximum Monthly Performance Payments to Seconded Staff...... 8

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1. Introduction

1.1 Purpose of this Report

The Terms of Reference require the Consultant to:

“Assess the degree of vehicle overloading, the condition and operating procedures of existing weighbridge stations in the project provinces. Review and assess recent public- private partnership measures for facility operation to improve sustainability. Assess institutional capacity of all relevant agencies to implement policies and regulations, including enforcement to determine necessary capacity development requirements.”

This review has been prepared based on discussions with the Government employees from the Ministry of Communications (MOC) (in particular Traffic and Transportation Division LLAJ), consultants who have been instrumental in recent or ongoing projects and provincial P2JJ offices and weigh station operators, and finally our own experience.

According to available reports (refer Table 2-2) the re are no weigh stations on any of the Subcomponent 2 roads in Java, one (non-operational) station in West Kalimantan (Tanjung), and one planned in East Kalimantan (Tanjung Redeb – Tanjung Selor).

Categorical data for overloading on the Subcomponent 2 corridor is thus not available. It is known however, both anecdotally and from factual accounts from other provinces that vehicle overloading is a serious issue throughout Indonesia and though a number of different methods have been trialed, no single method to date has been able to totally remove the problem. Each method has provided a number of ‘ways’ to short circuit the process. Our surveys indicate very limited overloaded trucks at present on the Subcomponent 2 roads. This could be partly due to the remoteness of the links from the standard transport corridors, the general standard and quality of the roads and the terrain of a number of the links.

1.2 The Indonesian Roads Sector

As with other developing countries, the roads sector plays an extremely important role in Indonesia’s overall transportation network. With relatively less-developed and under-utilized rail, air and sea transport networks, movement of passengers and goods via roads on each of the country’s islands represents the major means of transport. As such, road transport is a major contributor to the country’s economy, supporting major economic sectors such as manufacturing and agriculture, fostering communications between the country’s rural and urban areas and serving as an income-generating force in itself.

The country’s road network reflects Indonesia’s three levels of government, the national road network is the responsibility of the national government, provincial roads are the responsibility of the provincial governments and city or district roads are the responsibility of local government. The most densely settled island of Java has the highest density of roads and the islands of Sumatra and Bali, and, to a lesser extent, Sulawesi and Kalimantan, also have reasonably well-developed and integrated road networks. Networks on other islands are rudimentary although they play important roles in the local economy and in facilitating communication.

Indonesia has long realized the importance of its roads network and has supported the development of the national network, associated regional networks and connections between rural areas and market/administrative towns and the overall network. Funding for these

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developments has come from national and local budgets, from bi-and multi-lateral donors and, in recent years, from private sector investments.

Shortfalls in funding availability and increased demand for roads sector investments have led to a number of key issues needing to be addressed:

• Insufficient overall road capacity; • Chronic under funding of routine maintenance and road rehabilitation efforts; • Failure to sufficiently support efforts to protect the conditions of existing roads; • Lack of attention to activities designed to increased road safety and prolong road usage and accessibility; and • Difficulties in addressing weaknesses in the policy and institutional frameworks which underlie the sector.

1.3 Institutional Roles and Responsibilities

The main agencies involved in the management and funding, policy and procedures for the Indonesian Road Sector are described below.

1.3.1 Government

At the central level of government, the Ministry of Communications (MoC) is responsible for the overall operation of the country’s transport networks. The Directorate General of Land Communications (DGLC) has overall responsibility for road transportation: policy development, establishment of the road network, regulation of commercial transport, licensing, development and enforcement of standards, provision of road safety and road policing function (additional to police).

The Ministry of Public Works (Bina Marga) bears responsibility for the construction and maintenance of the road network and supporting infrastructure. The National Development Planning Agency (BAPPENAS) develops and implements long-term national plans and policies. The Ministry of Finance is responsible for establishing the overall budgets for central government ministries.

The State Ministry for Administrative Reform (Menpan) is responsible for the general operations of government entities including the national civil service. Road policing functions are undertaken by staff employed by local “traffic and road transport” offices (DLLAJ/Dinas Perhubungan) and office of the national police (POLRI).

1.3.2 Private Sector

The private transport sector, both for passengers and goods, is dominated by a large number of small, undercapitalized companies. Easy market entry and slack regulation have lead to an extremely competitive market, narrow profit margins and, likely, a significant number of failing companies. The pervasive presence of illegal or questionable levies—by rent-seeking individuals or local governments—simply adds to the financial woes of most companies. Transport of most goods is generally contracted out to transport companies rather than by trucks internal to large manufacturing or agricultural concerns. There are a number of associations of road transport operators which attempt to protect the interests of their members, “regularize” the sector and lobby for governmental actions.

1.3.3 Other Stakeholders

As elsewhere in Indonesia, consumers of transport services have relatively little protection in comparison to western or even other Asian countries. The Indonesian Consumers

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Federation provides some degree of assistance. There have been some efforts, mostly in urban areas such as Jakarta, to establish independent agencies which have some role in the establishment of fares and other fees.

1.3.4 Donors

A number of bi-and multi-lateral donors have supported Indonesia in the development of its roads sector. Support has involved a variety of mechanisms: provision of funds for construction or, less often, maintenance or rehabilitation of roads; assistance in the development of overall sectoral policies; provision of technical assistance to key government institutions and support for pilot projects designed to test innovative approaches. In practice, many of these mechanisms are often merged into integrated projects where funding for development of infrastructure is frequently combined with “softer” forms of support intended to develop policies or support institutional change. In keeping with overall donor policies, these projects usually take the form of loans which must be paid back, albeit often with concessional interest rates and with repayment deferred for a number of years. Major donors in the road sector in Indonesia have been the Asian Development Bank, the World Bank and the Japanese Government.

2. Current Government Initiatives

2.1 Zero Percent Tolerance

Discussions held with Ministry of Communication confirmed the policy statements published on the Internet. The Directorate General of Land Transportation, MOC has been in the process of implementing a ‘zero percent tolerance’ policy to overloading since April 2006. A staged approach has been adopted whereby the percentage overloading that is tolerated is reduced every 3 months. As of March 2008 the tolerance was still at 60% and in April 2008 it was reduced to 50%. The 0% target is set to become effective in February 2009.

Though the problem has been evident for many years and the desire to eradicate it has been strong, it was thought that to achieve zero percent in a drastic over-night manner would neither be possible nor acceptable. The impact on economy, transportation logistics, public awareness and acceptance, and training of appropriate staff would have proven difficult. Thus MOC proposed the gradual reduction of the tolerance starting at 90% overloaded, 80%, 60%, and so on. At this time the policy is being applied to the National roads from Jambi in Sumatera to Bali. The related issue is that many of the roads only have an 8T rating or less. Very few have a 10T rating. Thus the delay of setting the 0% tolerance as well as being political also allowed provinces to review the road designs and improve roads and bridges over a period of time. It should be noted that the RRDP project has designed their road projects at a 10T level.

It would appear that this concept has resulted from the SRRP project (2005) in Sumatera (refer Section 3.1). MOC believe that the policy is successful since road maintenance cost has reduced from 7 billion to 3 million Rupiah per year in 2004-2005. (It is not clear what this saving relates to, whether for a province, the roads around the weigh stations etc. It is most likely based on numbers shown in the SRRP report.)

MOC realize that one of the key aspects to achieving their target is proper law enforcement. Monitoring and supervision is very important. There are also issues here for the vehicle design industry to encourage better designed trucks that spread the loads to allow higher capacities but at the lower axle loadings. Thus truck design standards also become an issue.

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After reaching agreements between the regional governments of Java, Bali, Lampung government above, the level of overloading violations is gradually reducing as shown in Table 2-1 below. Table 2-1 Overloading Violations Period % violation 5-30% 30-50% 50-70% >70% >90% tolerance 17.45 3.70 2.43 1.14 May-Jul 2006 >80% 17.37 3.41 2.39 0.89 Jul-Sep 2006 >70% 17.04 3.08 2.31 0.44 Sep-March 2007 >60% 17.08 2.96 1.98 0.29 Jul-Nov 2007

It is important to remember that road damage is not caused by overloading alone. A research report by Dr. Agus Taufik, Professor from the Gajah Mada University, indicates that non standard road construction contributes some 44% to road damage and perhaps as little as 12% from vehicle overloading.

MOC will increase the monitoring of overloading, and MPW will increase the monitoring and supervision of road construction according to the Internet report (Source : Info Hubdar, Sajian Utama, Maret 2008)

Figure 2-1 - Typical Overloaded Truck

2.2 Weigh Bridge Stations in Java and Kalimantan

Another report shown in Table 2-2 below highlights the number of weigh stations as of 1985 and 2000, the number still operational and current plans for extending the weigh station network. Table 2-2 Weigh Station Status

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3. Relevant Project Background

A number of projects have been instigated over the last few years to specifically target the ever increasing problem of vehicle overloading and enforcement. These have met with mixed success. One of the largest and perhaps more successful projects has been the World Bank- funded Sumatera Regional Roads Project.

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3.1 Sumatera Regional Roads Project

Implementation of this project began in 1998 and completed in December 2005. The project supported a number of different components:

• Construction of new roads and betterment of existing roads in the national, provincial and Kabupaten road networks. • Technical Assistance projects to improve transport planning in the provinces of Sumatera. • Technical Assistance project carried out on behalf of DGLC for Road Traffic Safety and Vehicle Weight and Dimension Enforcement.

The key objective for the latter project could be as:

“Reduce road damage due to overloading of vehicles on some 1360 kilometres of roads identified as the most severely affected links of the road network, including 400 kms in Aceh, 550 km in N-Sumatra, 180 km W-Sumatra 230 km in Riau. This shall be achieved by securing the cooperation of road transport operators and companies in preventing overloading of vehicles and by strengthening vehicle weight and dimension (VWD) enforcement activities (especially at entry points to the road system) of all agencies involved, including MOC, Dinas LLAJ and the Police”

There are a number of innovations in their approach which are worth noting and building upon based on Government anecdotal evidence since the project completed. It is worth reviewing a summary of their approach, findings and recommendations as this consultant’s recommendation is based on that and more recent developments and recommendations from the Ministry of Communications.

3.1.1 Pilot Project on Vehicle Weigh Stations

The pilot underlying premise was that improved weigh station management and enforcement activities would lead to reductions in overweight vehicles. Accordingly, it concentrated on the behaviour of staff as influenced by three key components: • a performance based salary system where staff were rewarded for proper weighing and enforcement activities; • an effective management structure, and • a system of performance auditing.

These were supported by enforcement pressure from publicity and public awareness campaigns, provided external support.

A private sector management firm was contracted to manage four recently upgraded weigh stations in West Sumatera, and Aceh, closely supervised by the Consultant and by the Directorate General of Land Transport. Provincial transport office staff were seconded to the pilot project. Although the seconded staff members were regular government employees with the power to issue warnings and enforcement notices, they were managed by the private firm. One exception to this was that one weigh station operation was carried out exclusively by government staff during 2005.

All government staff received their basic civil service salary but also bonuses according to their performance.

The results of the pilot clearly show that proper enforcement can lead to reduced vehicle weights. Observations, review of weigh in motion data and examination of enforcement data indicated that staff were properly weighing vehicles and conducting enforcement activities.

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Site inspections and surveys confirmed that cases of “toll extraction” had been eradicated. These behavioural changes could be attributed to the use of a performance based salary system for seconded staff, monitoring of performance and the imposition of disciplinary measures for poor or corrupt performance of duties.

During 2005 three separate operational models were tested: one group comprised government staff exclusively, a second group was combined government staff and private sector and the third group was private sector with minimum government support to issue the summonses. The analysis of the operations clearly showed that the government-only group were the best and the private sector group the worst. The government staff also acted more professionally and were more consistent in the implementation in the Standard Operating Procedures

In turn, analysis of data showed that overall vehicle weights, particularly at the highest levels of overloading, declined significantly. Because of the high level of overloading a staged enforcement system was incorporated which commenced at a level of 90% overweight for the issuing of a summons. Over the course of the operation of the pilot project this was reduced to a threshold level of 60% for the issuing of a summons. Calculations indicate that in the first year of operation the average cost saving in road damage was approximately Rp. 6 billion / year / per weigh station for the three pilot weigh stations in West Sumatera.

Based on the successes outlined above, the consultant recommended the institutionalization of the basic model on a national basis.

3.1.2 Performance Incentives

The approach included performance bonuses to the operational staff based on the level of compliance with the Standard Operating Procedures. Table 3-1 shows the level of bonuses issued at that time.

Table 3-1 Maximum Monthly Performance Payments to Seconded Staff Dinas Perhubungan seconded staff Maximum monthly performance Position Number per station payments per individual (Rp) Senior Enf. Officer 1 2,000,000 Supervisor 3 1,800,000 Other 25 1,500,000

Payment levels were established from information gathered from a survey of tolls collected at weigh stations prior to the commencement of the pilot project. The maximum monthly performance payments equate approximately to the money being received prior to the project by a particular level of officer after allocation of the toll. It does not account for that part of the toll that was passed “up the line”.

3.1.3 Staged Enforcement

At the commencement of the pilot, the initial level set for the issuance of an enforcement notice was 90% overweight while warnings were issued for vehicles more than 80% overweight. This and subsequent levels were set so as to target the most serious 10% of offenders to ensure that the necessary enforcement procedures could cope with the workload. Following a two month period where the enforcement regime clearly indicated weight reductions, threshold levels were reduced to 80% and 70% respectively. These were further reduced to 70% and 65% and finally, on 1st March 2005, to 60% and 55%.

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The continued success of the project suggests that thresholds can continue to be reduced until an appropriate level is achieved but the consultant believes any further reduction in tolerance limits should be delayed until effective VWD enforcement is established in a much broader area than at present; ideally throughout Sumatra and Java. Concerns are that further reductions may result in transport operators substantially increasing rates in the areas serviced by vehicles passing through the pilot project weigh stations and that this may have serious social and economic repercussions.

3.1.4 Summary and Conclusions of the SRRP Project

The SRRP’s review examined institutional alternatives for the development of an effective nationwide vehicle weights and dimensions enforcement system and the operation of a national network of consistently operated vehicle weigh stations in Indonesia. These included:

1) Provincial Dinas Perhubungan. 2) Existing units of the central Ministry of Communications. 3) A quasi-independent authority reporting to the Ministry of Communications. 4) A state-owned private enterprise. 5) Through a franchise arrangement with a private sector entity.

The degree to which each of the five models would facilitate these components was assessed and it was concluded that a Vehicle Weights Management Authority reporting to MOC would best manage vehicle weights and dimensions control. This would have no direct links with other departments in the Ministry. It would report directly to the Director General and have the direct responsibility for ensuring compliance, managing the operations and research and development. It would have options at its disposal for the actual operation of the weigh stations which could use direct management, or working under an agency agreement with Dinas Perhubungan or private sector involvement and would likely vary from region to region.

This system would support the key components identified above but would also provide some flexibility in the operation of the weigh stations. As a government entity, staff would have the legal authority to carry out enforcement activities. Because of its relatively independent status, the board would be able to introduce performance-based salaries. As civil servants, staff would receive basic national civil service salaries, benefits and pensions. However, a supplemental system of bonuses could also be introduced relatively easily.

It was concluded that the Central Government needs to have the control of the operation of vehicles on national roads which are a national responsibility. This will require changes in the “functional assignment” for this responsibility which at present lies at the provincial level. The consultant recommends this assignment should be explicitly incorporated into a revised Road Traffic and Transportation Law which is was under preparation at that time. This law should specifically address all key issues regarding vehicle weigh stations as well as other aspects of road transportation.

External performance and financial auditing will also be an essential function to be carried out and the provision of an advisory board with effective industry and public representation is also recommended.

This institutional alternative is also considered to be among the most realistic politically as it would involve a government institution rather than a “for profit” entity. There is considerable precedence for such an authority and necessary institutional and organizational changes,

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while not easy, would be manageable. Moreover, costs would be reasonable—less than a private sector model although somewhat more than by a traditional unit of government.

4. Proposed Model

It should be noted that the much of the following model represents the current thinking within the MOC and is not a new concept from this Consultant. The Consultant has reviewed the SRRP documentation and considered the current recommendations from MOC staff and believe that what MOC are proposing has a great deal of merit.

4.1 Introduction

Though the SRRP report rather glowingly reports the successes of the project, anecdotal evidence since then indicates that everything is not going perhaps as smoothly. There is still significant corruption, fine-avoidance, illegal loads being allowed through, certain instances of overloading being undervalued or ignored in return for graft payments. MOC thus have taken the SRRP concept a step further to improve on 1) the implementation process and 2) the operation and management of the weigh stations.

4.2 Initial Implementation

Despite its overall success, the pilot project was certainly not without problems. These included: • Delays in the completion of the weigh station improvements which resulted in delay to the implementation of the pilot project. • Staged suspension of the operation in West Sumatra to enable the reconstruction of collapsed weigh station approaches. • Construction deficiencies which resulted in malfunctioning of the WIM which limited the amount of comparison auditing which could be carried out. • Inaccurate data from the WIM at most locations which did not allow comparisons to be made of performance other than at the Kamang weigh station. • Lack of urgency displayed by the private contractor to carry out repairs to equipment, in particular the weigh station at Sungai Langsat in West Sumatera. This resulted in a lengthy delay of different management options being tested for the different weigh stations in West Sumatera.

One of the key problems is that traditionally weigh stations are constructed after the road works had been completed and by different contractors. They often face delays with the necessary land acquisition for the site. In addition, the necessary approaches, passing and turning lanes into and from the station then have to be ‘added’ to the road, requiring again land acquisition for several hundred meters before and after the station. They recommend that the weigh station and the approaches be designed together with the road, and the land for the weigh station site be acquired all at the same time. Construction of road and station are simultaneous. This brings a more integrated approach to the road network, turning points, lanes, station signage and improves overall road safety. At these sites from a road safety perspective appropriate medians be in place that a truck needing to turn into the station or U-turn back to their intended direction after weighing have appropriate safety in the medians for the length of the vehicles. Adequate road lighting should also be included.

The vast majority of the projects being recommended by the RRDP PPTA contain significant widening and therefore the consultant also recommends that this integrated approach be taken. This would be a key component of the Detailed Design TA that they consider these requirements and prepare appropriate designs. The costing of the weigh stations

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construction and equipping should also be included in the road design costs. MOC estimates that a single weigh station costs in the vicinity of Rp 5 billion (approximately USD 500,000) to construct: inclusive of buildings approaches, weigh scales, office equipment, AC, offices, storage areas, unloading equipment (cranes etc), computers and services.

4.3 Location of Weigh Stations

For the RRDP, MOC staff recommends that weigh stations be established at each provincial border, near harbors and ports or key heavy industrial centers and junctions, in order to capture the vast majority of overloaded trucks.

4.4 Performance Based Contracts

The SRRP project reported the following problems during their project: • Initial management conflicts between the private contractor’s staff and Dinas Perhubungan staff primarily caused by the lack of experience of the contractor’s team. • Weaknesses in management and supervision by the private contractor which led to corrupt behaviour in the initial stages at Seumadam weigh station in Aceh. • Enforcement problems caused by the private contractor continuously diverging from the SOP’s in an apparent aim to appease drivers.

This reflects the issue MOC raised with this consultant, namely; the performance bonuses or incentives applied during the SRRP were not in themselves enough incentive for the complete application of the law. The temptation was still there and there were in fact no consequences or disbenefits for not applying the law in full. In effect, of the management team, neither MOC staff nor the private contractor ‘owned’ the road and therefore their long- term or even short-term passion and commitment for the work and the reason for the work was not high enough to outweigh the temptation for any potential personal gain.

MOC would prefer to build on the Performance Based Incentive concept by including it as part of a Performance Based Road Maintenance (PBRMC) contract. This form of maintenance contract are becoming more common around the world. They are usually focused on the road itself i.e. maintaining the condition of the road, ensuring certain performance indicators are being met over the lifetime of the contract and that the road at the end of the contract is at a specified condition level. With PBRMC, the incentive for the contract holder is to maintain the road in a way that fulfills the contract requirements in the most efficient manner possible, to minimize their expenditure while maximizing their profit. MOC’s logic is that if the company operating the weigh station is also the one looking after the road, there is significant incentive for the contractor to ensure that overloaded trucks are not destroying their road and therefore that all relevant penalties are applied. So doing, the contract holder decreases the damage to the road while maximizing his profit. He would receive no direct benefit (as per the previous incentive scheme) from application of the SOPs for the weigh station, only as a result of the reduction in maintenance costs on the road.

The MOC staff members on that team are not there to monitor the enforcement, ensuring that the private contractor is focused, but simply as the enforcer of the legal aspects of the fines/payments that are due. His incentives/bonuses would be tied to the contractor’s benefits/incentives. Thus, if the contractor is saving money on his road maintenance costs, a component of his profit would be paid as the incentive to the MOC staff member.

The implementation of such a scheme would be even more effective if the road construction contractor then became the PBRMC holder. The advantages would include:

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• As maintainer of the road, he would know what his starting point is, since he built the road • Any ‘short-cutting’ on quality during the construction phase would directly affect his profit potential as the maintainer of the road, thereby encouraging him to build it right so it is possible to maintain • Since he is the maintainer he will work hard to ensure that overloaded trucks are not destroying it

This would be a more difficult to implement in the case where PBRMC contractor other than the road builder is awarded the PBRMC contract as he would be unsure as to the quality of the road for which he is taking responsibility. The other advantages are still there but one might reasonably expect his price to be higher to allow for the unknown risks of initial road quality.

The overarching goal of the overloading policy is to reduce and eventually eradicate overloading by making life so difficult and expensive for perpetrators that there will ‘cease and desist’. In the long term, when the incentives are tied to the ongoing reduction in road maintenance expenditures there is a sustainable system where all benefit.

4.5 Impact on Maintenance Costs

One difficult aspect to measure is the effect on road damage from causes other than overloading. In Section 2.1 it was stated that a research report suggested only 12% of the road damage is directly related to overloading. Despite this, the following extract from the SRRP report would indicate that even a 12% reduction in road damage generates significant savings.

“The following calculation identifies the order of magnitude of the cost savings of the new system of operation at the Lubuk Selasih weigh station based on potential maintenance savings. This compares the cost impact of vehicle weights from February 2004 (prior to enforcement), with cost impact of vehicle weights from June 2005, when the tolerance level was set at 60% overweight before issuing an overloading summons.

The calculation assumes that the equivalent of an asphalt overlay will be required on a section of road every 10 years (current theoretical design practice of Bina Marga) and assuming that the structural deterioration is (similar to the structural design) related to the cumulative heavy axles. In reality, overlays or reconstruction are much more frequent. “

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Assuming that a road with a design truck volume of 2000 trucks per day (with a total of 4000 design 8t axle weights per day) required an overlay every ten years then assuming no growth in truck volumes, the total number of equivalent axles in the ten year period would be 14,600,000. The cost of rehabilitation – Rp 600 million / kilometer would be the equivalent of 41 Rp per 8T axle km. The daily average cost saving based on the comparison of February 2004 and June 2005 would then be: 1, 290,000 x Rp 41 = Rp 52.9 million / day or: Rp 19 billion / year in savings or in the order of Rp 6 billion / year / weigh station These are 2005 prices.

Though these are only very approximate they do give a ballpark figure of the savings that were achieved in just over one year of operation of the SRRP concept. The potential under the new scheme is much higher.

4.6 External Publicity and Public Awareness Campaign

The SRRP initiated public awareness campaigns. These were intended to build and sustain support for the pilot among key government agencies, with the transport industry and among the general public. However, progress in the implementation of these was slowed by institutional constraints and inertia. It is of paramount importance that everyone, both users and operators, truck and fleet owners, small business be made aware of the regulations, the fees, the fines, the limits for each type of truck, the procedures that will occur at the weigh stations, the procedures that will occur if they are found to be overloaded etc. Funding and support for Publicity and Public Awareness Campaigns are therefore strongly recommended in the RRDP project.

4.7 Management of Weigh Stations

The SRRP pilot project introduced a new approach towards the management of weigh station operations. The traditional style of complete operation by the Dinas Perhubungan was replaced, in the first stage of the project (prior to February 2005), with one where seconded staff were subject to the management of an external entity, in this case a private contractor. This model initially raised concerns regarding the relationship between the private and public sectors in law enforcement but, in the end, no major problems were encountered. This was because all enforcement activities were undertaken by government employees who have been given appropriate authority and legal power to undertake enforcement.

Key elements of the managerial approach included:

• Use of Standard Operating Procedures, and a supporting training program, ensured that operational staff were aware of and properly discharged their duties; • On-site management and monitoring by the Consultant was essential in identifying initial start-up glitches and day to day problems and developing responses; • The Consultant took a hand-on approach in supporting the private contractor regarding day to day operations and in facilitating the relationship between the contractor, Dinas Perhubungan and DGLC.

MOC’s current thinking is still along these lines whereby the private contractor is responsible for facility and equipment maintenance, its operation, the management of the facilities daily operations, data collection, reporting etc. The MOC employees are responsible for the control issues, issuing summonses, auditing and enforcement. No money is collected on site. The team would be responsible for ensuring the SOPs are followed precisely, that overloaded vehicles are unloaded to bring them to the appropriate limit, ensuring that

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unloaded goods are properly stored until they are picked up and that stored goods are properly charged (rental of storage space) and returned to the owner on a subsequent trip.

4.8 Other Issues

At the core of the pilot SRRP project was the effort to move from a situation where staff simply extracted a ‘toll” from all vehicles to one where they effectively enforced weight and dimension regulations through the issuance of warnings and enforcement notices. Vehicles issued with warnings were allowed to continue but were issued summonses following the third infraction at a single weigh station. Drivers issued with summonses were required to report to the local court where they were subject to legal proceedings. It was considered impractical, and unfair, to require drivers to immediately unload during the pilot. The rational behind this being that overloading is so prevalent that it is impractical to off-load until some reasonable level of compliance is obtained; danger, congestion and excessive processing delays would be continuously encountered. Exception was provided if there was imminent likelihood of a catastrophic event, in that case enforcement officers have an obligation to protect the public by taking any necessary legal action, including off-loading.

Since MOC is now three years further down this path and there exists at least a modicum of awareness within the transport industry of expectations and the legal process, and coupled with the fact that as of February 2009 a 0% tolerance target is desired, the opportunity to allow a driver to continue with an overloaded truck is not acceptable. It is not beneficial for the road for him, even having paid a fine, to continue on and destroy the next section of road. Neither is there benefit in sending him back and thus further damaging the road he has just driven over (and encouraging him to damage other local roads in an attempt to continue his trip via an alternative un-monitored route). The only logical step is to require him to unload enough of the goods to be within the proper guidelines while still incurring the penalty for the damage he has already done and the fact that he was breaking the law.

In this scenario then, storage facilities for unloaded goods, management of whose goods are whose, storage rental costs etc need to be addressed in the detailed design of the overloading policies developed and implemented during the RRDP project in an appropriate manner.

4.9 Legal Aspects

Analysis of the legal process indicates the following: • Certain Dinas Perhubungan staff had been deputized as PPPS (penyelidik pegawai negeri sipil) and therefore had legal authority to investigate infractions and issue warning notices and summonses; • The volume of court cases generated was quite small relative to the total volume processed by the prosecution authorities and the courts so processing difficulties did not arise; • Levels of penalties varied from region to region and also depending on individual prosecutors and judges; • Levels of penalties were relatively low as compared to the amount of damage caused; • Only drivers were penalized while the owners or operators of the trucks, who likely required or condoned overweight operation, were not (the law currently only provides for drivers to be penalized).

A number of these situations need to be rectified so that blame and fines are placed squarely where they belong and that innocent parties are not wrongly penalised. The methods of payment would need to be addressed; warnings and other punishments meted out to serial

Preparing the Regional Roads Development Project – Final Report 15 Annex 6 – Vehicle Overloading Assessment

offenders and so on. It is understood that central government receives the fine, but the provincial governments can currently charge a fee. The central government fine kicks in at a higher level of overloading than the local government fees do. The breakdown of the penalties needs to be clarified and agreed and appropriately apportioned with adequate monies going to the parties who will be responsible for repairing what was damaged as a result of the offence. The goal is not to have money making venture. The key goal is the eradication.

5. Conclusions

The Consultant recommends that RRDP continues to build on the successes of and the momentum generated by previous projects and continues the eradication of the dangerous and destructive. There is evident strong support from MOC to continue on in this endeavour.

• Trial the new concept on at least some of the corridor roads, or major roads leading to the corridor roads • Include the design and equipment needs in the detailed road construction designs • Construct the weigh stations in conjunction with the road works in order to maximize the integration of the road, access roads and weigh station • Appoint the road contractor to be the maintenance contractor under a suitably prepared performance based maintenance contract • Appoint a TA consultant to facilitate the preparation of the management and operation of the facility in advance to prepare the legal groundwork and standard operating procedures so that they are ready by the time the station is completed • Immediately the road is completed commence operations at zero percent overloading tolerance • Benchmark such a road and future road maintenance requirements with a road that does not receive the weigh station in order to document and ideally affirm the relative benefits of the concept • Facilitate an appropriate public awareness campaign to prepare public, communities and transport operators as to the new guidelines, laws, expectations and procedures

Whilst the above represents the results and recommendations from the STUDY, due to current political structures within the department, it is suggested that these recommendations be shelved until consensus can be reached within the related departments.

Preparing the Regional Roads Development Project – Final Report Annex 7 Poverty and Social Assessment

Table of Contents

1.! INTRODUCTION ...... 5! 1.1! THE PROJECT...... 5! 1.2! OUTPUTS ...... 5! 1.3! OBJECTIVE OF THE POVERTY AND SOCIAL ASSESSMENT ...... 6! 1.3.1! Methodology: Project Data Collection, Surveys, Focus Groups and Key Informants ...... 6! 1.3.2! Project Consultations ...... 8! 2.! INDONESIA OVERVIEW ...... 10! 2.1! POVERTY IN INDONESIA...... 11! 2.2! POVERTY MEASURES...... 12! 2.2.1! National Poverty Measures ...... 12! 2.2.2! National Non-Monetary Measures of Poverty ...... 13! 2.2.3! International Poverty Measures ...... 14! 2.2.4! Inequality...... 14! 2.2.5! Human Development Index...... 15! 2.2.6! Millennium Development Goals ...... 15! 2.3! REGIONAL DISPARITIES IN POVERTY ...... 16! 2.3.1! Rural and Urban Poverty...... 18! 2.4! KEY FEATURES OF POVERTY IN INDONESIA ...... 20! 2.5! GOVERNMENT POVERTY REDUCTION PLANS ...... 20! 3.! POVERTY IMPACT AND DISTRIBUTION OF NET BENEFITS ...... 23! 3.1! SCOPE OF POVERTY IMPACT ANALYSIS ...... 23! 3.2! METHODOLOGY OF PIA...... 23! 3.3! ECONOMIC EVALUATION OF PROJECT ...... 23! 3.4! POVERTY IMPACT ANALYSIS ...... 24! 3.4.1! Distribution of Economic Benefits ...... 26! 3.5! ROAD USER PROFILES ...... 27! 3.5.1! Impact Area...... 27! 3.5.2! Poor in the Project Area ...... 27! 3.5.3! Poor and Non-Poor Road Traffic Proportions ...... 28! 3.5.4! Vehicle Ownership and Competitiveness of Transport Services ...... 29! 3.6! DISTRIBUTION OF BENEFITS TO THE POOR ...... 30! 3.6.1! Assumptions for Distribution of Road User Benefits ...... 30! 3.7! SUMMARY OF DISTRIBUTION ANALYSIS AND POVERTY IMPACT RATIOS...... 34! 3.7.1! Sensitivity Analysis...... 35! 4.! PROJECT AREA SOCIAL ASSESSMENT ...... 38! 4.1! OVERVIEW OF JAVA ...... 38! 4.1.1! West Java ...... 40! 4.1.2! East Java ...... 40! 4.1.3! Central Java ...... 41! 4.1.4! Yogyakarta ...... 41! 4.2! OVERVIEW OF KALIMANTAN ...... 41! 4.2.1! West Kalimantan ...... 42! 4.2.2! East Kalimantan ...... 43! 4.3! POVERTY IN THE PROJECT AREAS ...... 43! 4.3.1! Causes of Poverty...... 45! 4.4! HOUSEHOLD CHARACTERISTICS ...... 49! 4.4.1! Location of Households...... 51! 4.5! LAND OWNERSHIP AND LANDLESSNESS ...... 52! 4.6! EMPLOYMENT AND INCOME SOURCES ...... 53! 4.7! INCOME EARNERS AND SOURCES OF INCOME ...... 54! 4.7.1! Households Selling Goods...... 56! 4.7.2! Unemployment in Project Provinces ...... 56! 4.8! TRANSPORT INFRASTRUCTURE AND ACCESS TO MARKETS ...... 57!

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4.9! EDUCATION ...... 59! 4.10! HEALTH...... 61! 5.! GENDER AND DEVELOPMENT ...... 65! 5.1! GENDER ISSUES IN INDONESIA...... 65! 5.2! WOMEN HEADED HOUSEHOLD...... 66! 5.3! GENDER AND EDUCATION...... 68! 5.4! GENDER AND DECENTRALIZATION...... 68! 5.5! WOMEN'S VOICE IN POLITICS AND DECISION MAKING...... 69! 5.6! WOMEN IN THE LABOR FORCE ...... 69! 5.7! VIOLENCE AGAINST WOMEN AND WOMEN’S ACCESS TO JUSTICE ...... 69! 5.8! MIGRATION AND THE PROJECT BORDER AREA OF KALIMANTAN AND MALAYSIA...... 70! 5.8.1! Female Migrant Workers...... 71! 6.! INDIGENOUS PEOPLES GROUPS ...... 72! 6.1! DEFINTION OF INDIGENOUS PEOPLE IN INDONESIA ...... 72! 6.2! OVERVIEW OF PEOPLE, LANGUAGES AND RELIGIONS BY PROVINCE...... 73! 6.3! INDIGENOUS PEOPLES IN PROJECT AREA ...... 76! 7.! HIV/AIDS AND HUMAN TRAFFICKING PREVENTION PLAN ...... 80! 7.1! RATIONALE FOR THE PREVENTION PLAN ...... 80! 7.2! IMPLEMENTATION ARRANGEMENTS ...... 81! 8.! COMMUNITY PERCEPTIONS OF ROAD IMPROVEMENT ...... 84! 8.1! ROAD USAGE ...... 84! 8.2! COMMUNITY PERCEPTIONS OF ROAD IMPROVEMENT IMPACTS...... 84! 9.! CONCLUSIONS ...... 88! 9.1! PROJECT BENEFITS ...... 88! 9.2! STAKEHOLDER ANALYSIS AND CONSULTATIONS...... 89! 9.3! VULNERABLE PEOPLE AND GENDER STRATEGY ...... 89! 9.4! MITIGATING MEASURES...... 90! 9.4.1! Resettlement Planning ...... 90! 9.4.2! HIV/AIDS and Human Trafficking Prevention Plan ...... 90! 9.4.3! Labor ...... 91! 9.4.4! Protection of Communities from Construction Disturbances...... 91!

Appendix 1: Selected Field Work Meetings and Discussions Appendix 2: Project Road User Survey Instrument Appendix 3: ADB Indigenous Peoples Impact Categorization Forms Appendix 4 : Project Benefit Monitoring Tables

Annex 1: RRDP Public Consultation Report Annex 2: RRDP Poverty Impact Ratio Calculations

LIST OF TABLES Table 1: GDP of Indonesia ...... 11! Table 2: Poverty Lines and Poverty Headcount 2002 to 2007 ...... 12! Table 3: Poverty Line by Province...... 12! Table 4: Non Monetary Poverty Criteria ...... 13! Table 5: Measures of Inequality...... 15! Table 6: Key Human Development Indices ...... 15! Table 7: MDG 1. Eradicate Extreme Poverty and Hunger...... 15! Table 8: Provincial Poverty...... 18! Table 9: Annual Flows of Benefits and Costs (Rp. bn 2010–2029)...... 26! Table 10: Poor and Non-poor Passenger Road Transport by Vehicle Type ...... 28! Table 11: Poor and Non-poor Freight Transport by Vehicle Type...... 29! Table 12: Vehicle Ownership by Vehicle Type ...... 29! Table 13: Share Of VOC and Times Savings Being From Passenger and Freight Traffic...... 32! Table 14: Passenger and Freight VOC and Time Savings...... 33! Table 15: Estimates and Assumptions Held Constant for All Sections...... 34!

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Table 16: Project PIR...... 35! Table 17: PIR With Increased Competition...... 36! Table 18: PIR With Decreased Competition...... 37! Table 19: Project Road Improvements by Province ...... 38! Table 20: Java GDP as % of National Total ...... 38! Table 21: GDP of Project Provinces in Java...... 40! Table 22: GDP of Project Provinces in Kalimantan ...... 43! Table 23: Rural and Urban Poverty in Project Provinces ...... 44! Table 24: Project Area Poverty Estimates...... 45! Table 25: Project Population and Poverty by District and Road Link ...... 48! Table 26: Percentage of Households by Source of Drinking Water, 2006 ...... 50! Table 27: Household Characteristics (%) ...... 50! Table 28: Household Characteristics...... 51! Table 29: Length of Residency and Size of Residence...... 51! Table 30: Location of Household...... 51! Table 31: Land Ownership in the Project Area...... 52! Table 32: Employment Distribution for Selected Districts and Provinces...... 54! Table 33: Minimum and Average Wages by Project Provinces 2006...... 54! Table 34: Number of Income Earners Per Household...... 54! Table 35: Sources Of Income in the Project Area ...... 55! Table 36: Households Selling Goods By Expenditure Group...... 56! Table 37: Where Households Sell Goods By Expenditure Group ...... 56! Table 38: Open Unemployment Rate by Province 2003 - 2006 ...... 57! Table 39: Length of Road By Type of Surface 2002 - 2005 ...... 57! Table 40: Number of Registered Motor Vehicles...... 58! Table 41: Length of Roads by Government Responsibility 2005 ...... 58! Table 42: MDG 2. Achieving Universal Basic Education...... 59! Table 43: Percentage Of Village With Schools In Project Area...... 60! Table 44: Children Not in School...... 60! Table 45: Estimated Life Expectancy by Project Province ...... 61! Table 46: Percentage of Births by Skilled Birth Attendant - 2006...... 62! Table 47: Percentage of Women Using Contraceptives...... 63! Table 48: Proportion of Population Who Conduct Self Treatment...... 63! Table 49: Gender Development Indices ...... 65! Table 50: Percent Male and Female Headed Houses in the Project Area ...... 66! Table 51: Subcomponent 1 Districts - Sex Ratio and Average Household Size ...... 67! Table 52: Illiteracy in Indonesia by Sex and Location 2004 ...... 68! Table 53: Average Educational Duration By Provinces and Gender 2002...... 68! Table 54: People From Project Areas Working Abroad in 2006...... 70! Table 58: Proportion of Villages in Project Districts by Main Indigenous Groups...... 73! Table 55: Number Of Indigenous People by Project Province ...... 74! Table 56: Social Characteristics in Java...... 74! Table 57: Social Characteristics in Kalimantan ...... 75! Table 59: Indigenous People in Living in Project Area by Road Link ...... 76! Table 60: Frequency of Road Use...... 84! Table 61: Main Reason for Road Usage ...... 84! Table 62: Current Road Conditions ...... 84! Table 63: Most Important Benefits From The Improved Road...... 85! Table 64: Most Important Economic Benefits From The Improved Road...... 85! Table 65: Negative Impacts...... 86! Table 66: Have you heard of HIV/AIDS?...... 87!

LIST OF FIGURES

Figure 1: Administrative Region In Indonesia...... 10! Figure 2: Poor Based on International Poverty Measure...... 14! Figure 3: Poverty Map by Percentage of Poor People ...... 17! Figure 4: Poverty Map by Number of Poor People (000's) ...... 17! Figure 5: Urban and Rural Poverty...... 19! Figure 6: Poverty Map of Kalimantan by District...... 46! Figure 7: Poverty Map of Java by District...... 47! Figure 8: Where the Poor Work In Java ...... 53! Figure 9: Where the Poor Work In Kalimantan...... 53! Figure 10: Infant and Child Mortality Rates 2003 ...... 61! Figure 11: MDG 5 - Improved Maternal Health...... 63!

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ABBREVIATIONS

ADB - Asian Development Bank AP - Affected Persons BCR - Benefit Cost Ratio BKKBN - National Family Planning Agency BPS - Central Statistical Agency, Badan Pusat Statistik CPI - Consumer Price Inde CTC - Core Team Consultant DGH - Directorate General of Highways EIRR - economic internal rate of return GoI - Government of Indonesia HAHTP - HIV/AIDS and Human Trafficking Prevention Plan HDI - Human Development Index HDM4 - highway design and maintenance 4 HH - Households IMR - Infant Mortality Rate IOM - International Organization for Migration IPDP - Indigenous Peoples Development Plan ISA - Initial Social Assessment LARAP - Land Acquisition and Resettlement Action Plan MDG - Millennium Development Goals MMR - Maternal Mortality Rate MPW - Ministry of Public Works MTDP - Medium Term Development Plan NAC - National AIDS Committee NPV - Net Present Value PAC - Provincial AIDS Committee PIA - Poverty Impact Analysis PIR - Poverty Impact Ratio PPP - Purchasing Power Parity PPTA - Project Preparation Technical Assistance PSA - Poverty and Social Assessment RF - Resettlement Framework RRDP - Regional Road Development Project PRSP - Poverty Reduction Strategy Paper PRUS - Project Road User Survey RF - Resettlement Framework RP - Rsettlement Plan SCF - Shadow Conversion Factor STI - Sexually Transmitted Disease SUSENAS - National Socioeconomic Survey UN - United Nations TTS - Travel Time Savings VOC - Vehicle Operating Costs WB - World Bank

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1. Introduction

1.1 The Project

During the 2006 country programming mission, the Government of Indonesia (GoI) requested technical assistance to prepare the proposed RRDP for possible ADB financing. The GoI’s medium-term strategy for the Ministry of Public Works (MPW) identified road development in less-developed regions as a priority.

The target corridors are the National highways and strategic roads:

• South of the Southern Trans Java Highway (STJH) in West Java, Central Java, East Java and Yogyakarta Provinces. In both instances these are not developed corridors but the hope is to create functional and efficient corridors in these areas that are not currently serviced by adequate road networks; and, • Including and within the areas of interest near the Malaysia border in West and East Kalimantan Provinces.

The Project will help promote sustainable economic growth and poverty reduction in Southern Java and Northern Kalimantan as a whole and the project areas in particular. It will achieve this by:

• improving transport accessibility and connectivity particularly in Southern Java and East Kalimantan; • enhancing road transport efficiency and safety generally; • improving the road transport network by building a section in West Kalimantan to open up transportation and development opportunities in North Western Kalimantan, and between there and Malaysian; and • improving poor rural and minority villages’ access to income-generating opportunities and social services, particularly in East Kalimantan.

1.2 Outputs

The Project to be phased over 7 years in two tranches. The first tranche will (i) expand carrying capacity through the widening and partial reconstruction of a total of 433 km of roads to a minimum width of 6 meters, (ii) replace or rehabilitate 169 bridges with a total length of 3,848 meters. The Project covers 6 provinces: West Java, Central Java, Yogyakarta, East Java, East Kalimantan and West Kalimantan. West Java and Yogyakarta will not be included in the first tranche projects as no projects meet the readiness criteria. Once rehabilitated, the roads and bridges will require routine maintenance. Roads will be widened within the existing right-of-way wherever possible.

The civil works will be monitored and support through the appointment of consulting services in the form of core team consultants to assist the Project Management Unit and design and supervision consultants to assist contractors with design issues and works quality.

The designs and initial tendering of the tranche 1 projects will be prepared prior to the project loan by Government agencies with independent international auditing. Subsequent tranches will be undertaken within the project, coordinated and certified by the DSC. The GoI will provide the resources necessary to carry out the work by local design consultants.

Preparing the Regional Roads Development Project – Final Report 5 Annex 7 Poverty and Social Assessment

1.3 Objective of the Poverty and Social Assessment

In 1999, ADB formally declared poverty reduction as its overarching goal, describing poverty as an unacceptable human condition that can be eliminated through public policy and action and that effective poverty reduction can only be achieved through promoting economic opportunities, social development and good governance. In 2004, ADB reviewed the relevancy of its Poverty Reduction Strategy1 (PRS), confirming the basic framework and strengthening the approach by recognizing that greater effectiveness could be achieved by aligning ADB operations with a country’s own poverty reduction strategy and the fostering of partnerships around that strategy.

A Resettlement Framework and preliminary cost estimates have been prepared for the project and are provided in a separate document (RRDP Resettlement Framework, revised July 2009). Hence, resettlement issues are not discussed in detail within this PSA.

1.3.1 Methodology: Project Data Collection, Surveys, Focus Groups and Key Informants

In preparing this Poverty and Social Assessment (PSA) the poverty and social team met with local district government agencies and conducted individual and group interviews along all accessible project road links in all 6 project provinces. Local government and NGOs assisted in organizing informal focus groups and the team also carried out impromptu interviews and group discussions. Selected meetings and discussions are presented in Appendix 1 from 2008 survey and a focus group in 2009. As well, additional surveys were conducted on resettlement in 2010 and those results are provided under separate cover in the Resttlement Plans.

In East and West Kalimantan, the team visited indigenous areas and met with local NGOs working in indigenous issues and in HIV/AIDS prevention. As well, a follow up meeting was held in Central Java in March 2010 on HIV/AIDS through the Due Diligence work. The first Public Consultation Report is provided in Annex 1 of this report ("Annex1 - RRDP Public Consultation Report"). The other consultation reports have been submitted under separate cover to the ADB in three Draft Resettlement Plans for East and West Kalimantan and for the Due Diligence work in Central Java that additionally conducted focus groups.

The methodology that was used was in the utilization of a Road User Survey. As there was some uncertainity of which were going to be the final roads under the proposed project a Project User Survey was done in 2008. The questionnaire was administered by a social development specialist after briefing the key village leaders, people and community on the intended project. The sample that is found in the next figure is based on subdistrict and villages of the approximate same size and population during the fall of 2008.

The process in administering the Survey follows ADB Guidelines in Social Development that being that community leaders in each village were appraised of the questionnaires and of the reason for the survey. The leaders were typically village leaders and senior education officials – Head Teacher. The sequencing of the order of the survey conducted again was typical and followed standard ADB practices by following the order of the possible alignment. The sample size is small, however, as there was non-confirmation of the final selection of roads the survey had to proceed. Subsequent to the 2008 Road User Survey additional relevant socio economic data has been collected for affected persons in Central Java and in East and West Kalimantan.

1 Enhancing The Fight Against Poverty In Asia and The Pacific: The Poverty Reduction Strategy Of The Asian Development Bank, December 2004.

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In Java, a Project Road User Survey (PRUS) was undertaken. This survey allowed the team to collect socio-economic data disaggregated to provide a breakdown between poor and non-poor beneficiaries based on a poverty line of Rp 170,000 per person per month. This poverty line provided a reasonable average poverty rate between urban, rural and provincial differences. Characteristics of poverty were surveyed such as household expenditure levels, household size, ethnicity, occupation and access to infrastructure such as water and electricity. The survey also explored beneficiaries’ perceptions of how they would benefit from improved roads and their views on potential negative impacts. Household survey participants were randomly selected and in total 393 people were surveyed.2 Both women and men were surveyed and responses are disaggregated by sex3.

The project road user survey instrument is provided in Appendix 24 of this report. The sites surveyed in Java and the random sample numbers were as follows:

Province District Respondents Village Adipala, Adipala wetan, Adiraja, Glempangpasir, Karangbenda, Welahan wetan, Widoropayung • Cilacap 24 wetan, Pagubugan kulon

Ambal resmi, Ayah, Kr.Bolong, Pandanlor, Mirit • Central Java Petikusan, Munggu, Banjarejo, Tambakmulyo, 42 99 Survey • Kebumen Weton wetan Respondents • Purworejo 3 Pasiranom Dongklepan wetan, Giribelah, Giritontro, Platarejo, Pucanganom, Sejati, Sirnoboyo, • Wonogiri 30 Pracimantoro, Sambiroto, Suci • Kulonprogo 11 Garongan, Plered kidul, Glagah • Kulon Progo 4 Jangkaran, Karangwuni Tirtosari, Tirtosari, Gadingsari, Poncosari, DI Yogya Trimurti, Paker, Sidomulyo, Trirenggo, Gatak, • • Bantul 37 108 Survey Patalan, Sabdodadi, Donotirto, Parangtritis, Respondents Panjangrejo, Timbulharjo Giriharjo, Girimulyo, Giriwungu, Giriasih, Girijati, Giritirto, Jetis, Monggol, Planjan, Banjarejo, 56 • Gn kidul Kemadang, Tepus, Jerukwudel, Nglindur, Balong, Jepitu, Purwodadi, Purwodadi • East Java Belah, Wareng, Punung, Sooko, Pringkuku, Dadapan, Ploso, Kayen, Karanganyar, 186 Survey • Pacitan 67 Respondents Sidomulyo, Hadiwarno

2 The timing of the social and poverty field work, including the PRUS, was delayed awaiting project identification of Sub-Component 2 road links. As a result, survey work was constrained to the Java corridor and limited to 393 respondents. Hence, the initial results were not analyzed on a sub-project road or provincial basis due to the small sample size. There has been some effort to ascertain whether there were any major provincial differences but based on sample size there were no clear, distinct differences.. 3 Results were not disaggregated by "female headed household". Thus, women's responses are those of women surveyed but not necessarily women heading a household. 4 The Bahasa Indonesia language version of the PRUS is provide in Appendix 2. The English version of the questions can be found in Annex 2-RRDP Poverty Impact Ratio Calculations.

Preparing the Regional Roads Development Project – Final Report 7 Annex 7 Poverty and Social Assessment

Province District Respondents Village

Nglebeng, Banjar, Karanggadu, Prigi, • Trenggalek 45 Tasikmadu • Tulungangung 3 Besole • Blitar 12 Kaligrenjeng, Margomulyo, Serang, Tambakrejo Kedungsalam, Mentaraman, Sumberoto, Tirtomulyo, Pamotan, Rembun, Argotirto, Druju, 34 • Malang Sumbermanjingwetan, Tambakrejo, Talok, Tirtoyudo Jarit, Condro, Pasirian, Oro2-ombo, Pronojiwo, Sidomulyo, Sumberurip, Sumberurip, 25 • Lumajang Tamanayu, Sumbersuko, Lempuni, Sumberjati, Tempeh Tengah Total 393

The Project Road User Survey was also the field survey was that prepared the Poverty Impact Ratio (PIR). For example, the surveys collected data to calculate the road user benefit incidence, the distribution of benefits among the poor and non-poor and helped to assess the structure and performance of the transport market in the project area. Hence, field survey determined profiles of road users by poor and non-poor beneficiaries, the degree to which poor and non-poor use transport services and different transportation modes, and the degree of vehicle ownership. The survey team also interviewed passengers and vehicle operators. All respondents were surveyed for socio-economic status, vehicle ownership and the various modes of transport used for a wide range of travel destinations.

The PIR calculations and the survey results are provided in Excel spreadsheet format in Annex 2 of this report (Annex 2 - RRDP Poverty Impact Ratio Calculations).

The team also used secondary data, in particular, the 2007 statistical yearbooks for each province and the 2006 Census data which is still the most current in 2010.

1.3.2 Project Consultations

Consultations allowed the team to collect qualitative information from both individual households and from government departments, district and sub-district leaders. In particular, representatives of the National AIDS Committee (NAC) and Provincial AIDS Committees (PAC) were canvassed in the project areas for the their knowledge of local issues, opinions on road improvement impacts and risks and mitigating measures. Local officials in East and Central Java were reintroduced to the project in 2010 by a Due Diligence Team and Social Screening Team on potential new roads.

The first public consultation meeting to inform communities about the project, including the Resettlement aspects and the HIV/AIDS and Human Trafficking Prevention Plan, was held in January 2009. A series of participatory disclosure and planning workshop will be held to give MPW the opportunity to inform participating communities about project activities and gather community comments and concerns before RP studies and civil works begin. Local government officials and communities have already been consulted on resettlement planning with two rounds of local meetings and community socialization. Provincial and district governments and community organizations will be involved in the implementation of the three Resettlement Plans that have already been prepared and in subsequent resettlement work .

The analysis and conclusions of this Poverty and Social Assessment are described in the following sections:

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Section 2 of this report provides a socio-economic overview focusing on the key dimensions of poverty in Indonesia.

Section 3 describes the Poverty Impact and Distribution of Net Benefits. These have been prepared in accordance with ADB’s Handbook on Poverty and Social Analysis and Handbook for Integrating Poverty Impact in Economic Analysis of Projects. Primary and secondary data have been used to construct poverty profiles that identify and describe the extent, depth and characteristics of poverty in the project area. The Project Road User Survey (PRUS) has been conducted to provide information on road user patterns by poor and non-poor beneficiaries that allow an analysis of the distribution of the project’s net benefits among different categories of beneficiaries. There were very few differences between the regions in the sample as they followed the transport corridor. This process identifies poverty levels, defines the poor and permits an approximation of the proportion of the poor who use and operate transportation services on the project roads, and whether they are vehicle owners or operators, passengers or using freight services. Based on these findings an estimate of the proportion of the net benefits likely to accrue to each beneficiary group has been conducted. This culminates in a Poverty Impact Ratio (PIR) for the project.

Section 4 of this report provides the Social Impact Assessment. An analysis of the poverty reduction and social impacts of road improvements, with particular attention to the poor, vulnerable and women has been prepared. Project surveys and a village meetings under the RP planning process in 2010 carried out along selected road sections, combined with secondary data, have provided socio-economic profiles of the project area. Furthermore, community consultations and the PRUS provide information related to community views of how road improvements will impact on people living in the project area, including potential negative impacts. This provides an assessment of the ability of the poor to benefit from resulting economic activities and examines the barriers that could prevent the poor from benefiting from economic growth. Overall, the benefits expressed by the communities was positive.

Section 5 describes the Gender and Development issues in Indonesia and in the Project areas. Gender concerns and gender disaggregated data have been mainstreamed throughout this report. In particular, women's perspectives on road improvement impacts, both positive and negative, are highlighted in Section 8. The PSA concludes that a separate Gender Strategy is not required for the project. However, gender issues are explicitly addressed within the HIV/AIDS and Human Trafficking Prevention Program and within Resettlement Plans.

Section 6 describes the Indigenous peoples issues in Indonesia and in the Project areas. In East and West Kalimantan, the project field work found that traditional indigenous communities are living more than ten km from the existing roads. The social assessment concludes that indigenous people will benefit from the project and will not be significantly affected by the project in ways different from non-indigenous people. An Indigenous Peoples Development Plan is not recommended for the project. The ADB's Indigenous Peoples Impact Classification Forms are provided in Appendix 3 of the report.

Section 7 describes the HIV/AIDS and Human Trafficking Prevention Plan. The PSA concludes that an HIV/AIDS and Human Trafficking Prevention Plan is required to mitigate increased risks arising from the road improvements. The rationale, summary of the plan activities and budget are provided in this report. A Framework and TORs for the implementation of the plan are provided in separate a project document (RRDP - HIV/AIDS and Human Trafficking Prevention Plan).

Section 8 describes the key findings of the Project Road User Survey. Community perspectives on both positive and negative expectations are presented.

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2. Indonesia Overview

The Republic of Indonesia has a population of over 222 million and is the world's fourth most populous country. The average population growth rate from 1999 to 2007 was 1.2 percent5 and the total population is expected to reach 251.6 million by 20156. Indonesia consists of 17,508 islands, about 6,000 of which are inhabited, with the largest being Kalimantan, Sumatra, Java, Sulawesi, Papua and Timor. At 1,919,440 square kilometers (741,050 sq miles), Indonesia is the world's 16th-largest country in terms of land area and has an average population density of 134 people per square kilometer.

Figure 1: Administrative Region In Indonesia Indonesia became an independent nation in 1949. Following the resignation of President Suharto in 1998, Indonesian political and governmental structures have seen major reforms. In 2001, Indonesia underwent a rapid process of decentralization, devolving budgetary and implementation authority for many services to the municipality level. Enthusiasm for regional autonomy has led to regions splitting from former administrative jurisdictions and has resulted in prolific growth in the number of regencies/municipalities and provinces. Whereas previously the national level

Regncies/Manicipalities Provinces government set priorities, agendas, and Source: Evaluation Of The Proliferation Of Administrative Region In determined funding, this authority now Indonesia, Bappenas and UNDP, 2008 rests with the 456 regencies/municipalities that are coordinated by 33 provinces across the country7. Thus, sub-national governments have become major players in service delivery and their role in public investment and economic development is increasing.

The Indonesian economy grew by 6.3 percent in 2007, the fastest growth since the economic crisis of the late 1990s. Private consumption grew by 5.0 percent between 2006 and 2007 and by 5.6 percent during the course of 2007, its fastest pace this decade, led by non-food consumption. Total exports increased by 8.0 percent in 2007 from 2006, led by manufactured exports especially automotive goods and chemicals, and by some agricultural products. The strength of Indonesia’s domestic economy, and particularly consumer demand, is evident in the production account shown below in Table 1. Over the year, all production sectors recorded stronger growth in 2007 relative to 2006.8

5 Key indicators for Asia and the Pacific 2008 6 HDR 2007/2008 7 Evaluation Of The Proliferation Of Administrative Region In Indonesia, 2001-2007, Badan Perencanaan Pembangunan Nasional (Bappenas) In Cooperation With United Nations Development Programme (UNDP), July 2008 8 Indonesia Economic and Social Update, World Bank 2008

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Table 1: GDP of Indonesia 2004 2005 2006 22007* Industrial Origin (Billion (Billion (Billion RP) % % % % RP) RP) Agriculture, Livestock, 329,252 14.3 363,928 13.1 430,493 12.9 7.9 Forestry And Fisheries Mining And Quarrying 205,252 8.9 308,339 11.1 354,626 10.6 2.9 Manufacturing Industry 644,342 28.1 771,724 27.7 936,361 28.0 20.5 Electricity, Gas, And Water 23,730.3 1.0 26,693.5 1.0 30,398.5 0.9 1.1 Supply Construction 151,247 6.6 195,775 7.0 249,127 7.5 8.3 Trade, Hotel And Restaurant 368,555 16.1 430,154 15.4 496,336 14.9 22.6 Transport And 142,292 6.2 180,968 6.5 230,921 6.9 15.4 Communication Financial, Real Estate And 194,410 8.5 230,587 8.3 271,543 8.1 11.6 Business Services Services 236,870 10.3 276,789 9.9 338,385 10.1 9.7 Gross Domestic Product 2,295,954 100.0 2,784,960 100.0 3,338,196 100.0 100.0 Source: BPS for 2004, 2005 and 2006; Indonesia Economic and Social Update 2008, World Bank

2.1 Poverty in Indonesia

Poverty had been falling since the end of the financial crisis in 1999 up until 2007. The United Nations now classifies Indonesia as a middle income country. The accelerating growth over the last three years is reflected in Indonesia’s poverty and employment numbers. Indonesia’s poverty rate, measured at the national poverty line, fell from 16.6 percent in March 2007 to 15.4 percent in March 2008. The decrease continued the trend of gradually declining poverty rates. Both urban and rural poverty rates declined in 2008 and the decline was spatially uniform, with even the poorest provinces registering decreases in their poverty rates. Simulations suggest that given the robust growth in 2007 and 2008, poverty would have fallen even further, perhaps by as much as an additional two percentage points had it not been for the nearly 16 percent rise in food prices between April 2007 and April 2008. The global turmoil since mid-September has, however, adversely affected Indonesian economic outlook and recent indicators suggest that poverty rates may rise sharply in 2009. Even without the impact from the global financial crisis, the original target for poverty in 2009 was 8.2% was certainly not attainable.

The most pressing problems, unemployment and underemployment remain, high. In 2007, the national poverty rate was 16.7 percent which meant that more than 37 million people were poor as measured by the Indonesian ‘national poverty line’9. This is an improvement and a reversal of the 2006 experience that saw the poverty rate rise to 17.8 percent from the 16 percent level of 2005, the first increase since the economic crisis. The number of people living below the US$2-a-day poverty line in Indonesia comes close to equaling all those living on or below US$2-aday in all of the rest of East Asia besides China10. Hence, regardless of the UN classification of Indonesia as a middle-income country, the share of the population living in poverty is similar to that of the region’s low-income countries such as Vietnam.

9 Let's Speak Out For MDG - Achieving The Millennium Development Goal in Indonesia, Government of Indonesia Thematic MDG Working Groups and UN, 2007/2008, December 2007 10 Making the New Indonesia Work for the Poor, World Bank, 2006.

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Table 2: Poverty Lines and Poverty Headcount 2002 to 2007 Percentage of Population Below Population Below Year Population National Poverty National Poverty Line (Million) Line 2002 211.063 38.4 18.2 2003 215.276 37.3 17.3 2004 216,381 36.0 16.7 2005 218,869 35.0 16.0 2006 222,192 39.4 17.8 2007 223,000 * 37.0 16.7 Source: National Statistics Bureau and Let's Speak Out For MDG

2.2 Poverty Measures

2.2.1 National Poverty Measures

Similar to many countries, Indonesia uses a number of measures to capture the rate and extent of poverty. The national poverty line is an income based calculation but other non-monetary measures and combinations of the two methods are used by different agencies.

The Government of Indonesia's Poverty Reduction Strategy Paper (PRSP) defines poverty in terms of 10 basic rights related to food security, health, education, decent work, housing, clean water and sanitation, security of land tenure, clean environment, security, and empowerment. Poverty is measured by the Central Statistical Agency, Badan Pusat Statistik (BPS) based on a consumption bundle which consists of food items (to satisfy 2100 calories) and basic non food items determined by the pattern of consumption of reference households near the poverty line. Poverty lines are established at the national and provincial level for urban and rural households. The bundles comprise 52 food items and 47 non food items but the relative weights varies across provinces, which means that comparison across provinces is imperfect. Indonesia has chosen specificity over comparability: using consumption bundles that capture local preferences can provide better indicators of changes of welfare within provinces. However, as the bundles differ across provinces they are less efficient at indicating relative changes in welfare across provinces.

Table 3: Poverty Line by Province 2004 (rupiah/capita/month) Project Provinces Urban Rural West Java 152,144 122,475 Central Java 140,391 116,998 DI Yogya 148,247 114,671 East Java 138,792 119,405 West Kalimantan 160,491 103,400 East Kalimantan 163,976 170,296 2004 143,455 108,725 Indonesia 2005 150,290 117,259 2006 174,290 130,584 Source: Provincial Statistical Yearbooks, GoI, 2007

The National Socioeconomic Survey, Survei Sosial Ekonomi National (SUSENAS) is the principle source of information on household welfare. It consists of a core annual survey and more in-depth modules repeated every three years. The SUSENAS has been conducted since 1984 and was expanded into its present form of core plus modules in 1993, when representation increased from the national to the provincial level. The current sample size for the core is over 210,000 households. Poverty measurement is based on the detailed consumption module of 65,000 households. Since the core component of the survey also

Preparing the Regional Roads Development Project – Final Report 12 Annex 7 Poverty and Social Assessment contains information on expenditures by consumption category, poverty estimates can also be made annually, based on inflation rates for the items in the consumption category from their values and weights in the consumption module.

2.2.2 National Non-Monetary Measures of Poverty

The National Family Planning Agency (Badan Koordinasi Keluarga Berencana Nasional or BKKBN) began to collect alternative household level poverty measures in 1994, recognizing that poverty had other psychological and social dimensions. BKKBN uses non-income indicators to classify households as pra-sejahtera (pre-prosperous) or sejahtera (prosperous). Unlike the SUSENAS which is a stratified random sample, the BKKBN data attempts to cover every household in Indonesia through the use of family planning volunteer cadres. It is the only data set that does this and so is the only one that is available for the individual targeting of means-tested programs. The questions cover the number of meals eaten per day, clothing, housing, literacy, education, income, savings, social and recreational activities and access to information and transport. Two categories, pra-sejahtera and keluarga sejahtera (minimally prosperous), are commonly accepted as representing the poor.

During the financial crisis the government rapidly designed and implemented safety net programs to provide short-term support for the poor. The programs aimed to provide food security, maintain incomes through employment creation, and preserve access to health and educational services. Most of these programs used a combination of the BPS data for regional allocations and the BKKBN data for individual targeting. Local interpretation by the BKKBN cadres sometimes influenced the scoring, particularly when the scoring was linked to entitlements.

BKKBN retained its status as a central government agency following decentralization in 2000. However starting in 2002, BKKBN was reorganized, its district level family planning staff were absorbed by local government, and funding for village family planning cadres ceased. As a result, maintenance of the BKKBN poverty monitoring system was compromised although some districts have continued the monitoring on their own initiative. Plans and pilot efforts are underway to revive and improve upon the system for future poverty targeting.

Table 4: Non Monetary Poverty Criteria Poverty Variable Criteria 1 Wide of floor per family members/familly < 8 m2 2 Type of floor land/wood/low quality 3 Type of wall bamboo, low quality of wooden 4 Facility of toilet None 5 Source of drinking water None 6 Electricity non electricity 7 Firewood used wood/charcoal 8 Frequency eating a day < twice a day 9 Capacity to buy meat/chicken/milk a week None Capacity to buy a new clothes per family 10 None members 11 capacity to visit health centre None small farmer, small fishermen, labor of 12 Job of head of household farming activity never attend school/not completed of primary 13 Level of education of HH head school 14 Having asset minimum Rp 500,000 None Source: National Planning Board, 2008

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2.2.3 International Poverty Measures

To compare poverty across countries, the World Bank uses estimates of consumption converted into US dollars using purchasing power parity (PPP) rates rather than exchange rates. The PPP rate shows the numbers of units of a country’s currency needed to buy in that country the same amount of goods and services that US$1 would buy in the US. These exchange rates are computed based on prices and quantities for each country collected in benchmark surveys. According to the US$1-a-day poverty line calculations, in 1993 the US$1-a- day PPP poverty line was equivalent to Rp 20,811-a-month. Adjusting the PPP poverty line over time by relative rates of inflation and using consumer price index (CPI) data, the US$1 PPP poverty line was equivalent to Rp 97,218 per person per month in 2006, while the US$2 PPP poverty line is equivalent to Rp 194,439 per person per month11.

According to the World Bank, about 42 Figure 2: Poor Based on International Poverty Measure percent of all Indonesians live between the US$1- and US$2-a-day poverty lines. Thus, while Indonesia has recently crossed the threshold to become a middle-income country, the share of its population under US$2-a-day is closer to lower-income countries East Asian countries. The average for Cambodia, Laos, Papua New Guinea and Viet Nam stands at 53.8 percent. This also means that a large proportion of poor are clustered around the poverty line making them vulnerable to expenditure shocks.

2.2.4 Inequality

One of the major strengths of Indonesia’s historical pro-poor growth has been its relatively equal national Source: Making the New Indonesia Work for the Poor, World Bank, 2006 income distribution, which remained fairly stable for decades. The latest estimate of the gini coefficient12 from the SUSENAS household survey data indicate that Indonesia has only a moderate level of inequality with a gini ratio of 34.8 in 200413. Indeed, Indonesia’s Gini coefficient for inequality of 35 percent makes it comparable to the many developed countries and ahead of developing countries14. Nevertheless, this represents an increase over 2003's gini ratio of 31.6. As Table 5 shows, inequality in urban areas has historically been much higher than in rural areas,

11 Making the New Indonesia Work for the Poor, World Bank, 2006 12 The gini coefficient measures the degree to which an economy’s income distribution diverges from perfect equal distribution. A value of zero (0) implies perfect equality while a value of one (1) implies perfect inequality. 13 BPS Statistical Yearbook 2007 14 For example, the Netherlands, a country with an extensive social welfare system, and well ahead of comparable developing countries, such as Brazil (61 percent), China (40) and Malaysia (49): World Bank MSWFTP

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Table 5: Measures of Inequality

Source: From Poverty to Prosperity- A Country Poverty Analysis for Indonesia, ADB, 2006

In recent years, the previously stable Gini ratio has started to register an increase in inequality. The Gini ratio in 2004 was around 34.8 percent or 3.1 percentage points higher than the ratio in 1999.

2.2.5 Human Development Index

The Human Development Report 2007/2008 ranks Indonesia at 107 out of 177 countries in the Human Development Index (HDI) for 2005, which places Indonesia in the medium human development category.

Table 6: Key Human Development Indices 2005

HDI Trend

Source: Human Development Report 2007/2008, UNDP 2008

2.2.6 Millennium Development Goals

Although Indonesia is on track to achieve several key millennium development goals (MDG), it is lagging behind in others. The goal of halving the proportion of people who live on less than $1 a day has been achieved, though this leaves about 7.5 percent of the population still in that category. Notable improvements are evident in progress towards the MDGs related to adult literacy, infant mortality and child malnutrition. Enrolment in primary education has not changed, but more 16 year olds have completed primary school, and the ratio of boys to girls is on track.

Table 7: MDG 1. Eradicate Extreme Poverty and Hunger Target 1. Halve, Between 1990 And 2015, The Proportion Of People Whose Income Is Less Than One Dollar A Day Indicator 1990 Present Target Remark Status Standard is Already 1 Population below $ 1 a day 20,6% 7,5% 10% too low achieved Poverty head count ratio (population below High but Needs 1a 15,1% 16,6% 7,5% national poverty line) coming down improvement 1b Population below $ 2 a day (%) 49% High Poverty gap ratio (incidence x depth of 2 2,7% 2,99% Stagnant poverty)

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2a Poverty Depth Index 0,84 Stagnant Share of poorest quintile in national 3 9,3% 9,7% Stagnant consumption Target 2. Halve, Between 1990 And 2015, The Proportion Of People Who Suffer From Hunger Prevalence of severe underweight children Needs 4a 6,3% 8,8% 3,3% Increasing (under 5 years ) improvement Prevalence of underweight/undernourished Needs 4b 35,5% 28,0% 18% Increasing children (under 5 years) improvement Proportion of population below minimum Decreasing Likely to 5 9,0% 6,0% 5% level of dietary energy consumption slowly achieve Source: Let's Speak Out For MDG, Thematic MDG Working Groups and UN, 2007

Key areas where Indonesia is lagging behind are access to improved sanitation which remains low, maternal mortality rates are amongst the highest in Southeast Asia, and the HIV/AIDS epidemic is accelerating sharply. The empowerment of women has been going slowly and April 2008 elections saw the percentage of female legislators rise to only to 11 percent from 0 percent. Some of the key areas that are in need of improvement are as follows:

• Malnutrition rates are high and have even risen in recent years: a quarter of children below the age of five are malnourished in Indonesia, with malnutrition rates stagnating in recent years despite reductions in poverty. • Maternal health is much worse than comparable countries in the region: Indonesia’s maternal mortality rate (307 deaths in 100,000 births) is three times that of Vietnam and six times that of China and Malaysia; only about 72 percent of births are accompanied by skilled birth attendants. • Education outcomes are weak. Transition rates from primary to secondary school are low, particularly among the poor: among 16- to 18-year-olds from the poorest quintile, only 55 percent completed junior secondary school, compared with 89 percent from the richest quintile from the same cohort. • Access to safe water is low, especially among the poor. For the lowest quintile access to safe water in rural areas is only 48 percent, against 78 percent in urban areas. • Access to sanitation is a crucial problem. Eighty percent of the rural poor and 59 percent of the urban poor do not have access to septic tanks, while less than 1 percent of all Indonesians have access to piped sewerage services.

Although Indonesia's national trends show that it is on track to achieve many of the MDGs by 2015, a number may not be met in many provinces and districts, particularly in the remoter areas. Many regions, especially in eastern Indonesia, are lagging behind and doing particularly poorly in a number of health and infrastructure related indicators. As a result, Indonesia may yet fail to reach several of its MDG targets.

2.3 Regional Disparities in Poverty

National poverty indicators disguise considerable regional variation. For example, in 2007 the poverty rate for Jakarta was only 4.6 percent, 15.7 percent in Java but in Papua it was almost 40.8 percent. Across Indonesia, there exist large areas of regional poverty, in addition to smaller pockets of poverty within regions. Figures 3 and Figure 4 display how the poverty incidence and mass vary greatly across the Indonesian archipelago.

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Figure 3: Poverty Map by Percentage of Poor People

< 5 6 - 10 11 -15 18 - 20 20 + Source: Making The New Indonesia Work for the Poor, World Bank, 2006

Figure 4: Poverty Map by Number of Poor People (000's)

< 300 500 - 1,000 1,000 -1,500 1,500 - 2,000 2,000 + Source: Making The New Indonesia Work for the Poor, World Bank, 2006

Services are also unequally distributed across regions, with an undersupply of facilities in remote areas. In Java the average distance of a household to the nearest public health clinic is 4 kilometers, whereas in Papua it is 32 kilometers. While 66 percent of the poorest quintile in Java have access to improved water, this number is 35 percent for Kalimantan and only 9 percent for Papua. A challenge faced by the government is that although poverty incidence is far higher in eastern Indonesia and in more remote areas, most of Indonesia’s poor live in the densely populated western regions of the archipelago. For example, while the poverty incidence in Java is relatively low, the island is home to 57 percent of Indonesia’s total poor.

As shown in Table 8, the three project provinces of East, West and Central Java are the top three ranking provinces in terms of poverty magnitude, accounting for over 51 percent of Indonesia's total poor. In total, the six provinces in the project area account for 53.5 percent of the total population and almost 20 million or over 55 percent of Indonesia's poor. Despite its relatively low poverty rate of 12 percent, West Java has the third highest number of poor, ranking 28 out of 30 provinces for which there is data and comprising 13 percent of all the poor in Indonesia. Conversely, West Kalimantan with a higher poverty rate of 13.9 percent has only 1.5 percent of the total poor and ranking 14th out of 30 for poverty magnitude due to its low population.

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Table 8: Provincial Poverty Poverty Data 2004 Population Poverty Rate Share of the Province 2,006 Number of in Ascending Poor (000) Poor Order % 1 DKI Jakarta 8,963 3.2 285 0.8 2 Bali 3,432 6.9 235 0.6 3 Kalimantan South 3,346 7.2 241 0.7 4 Banten 9,224 8.6 791 2.1 5 Sulawesi Utara 2,161 8.9 193 0.5 6 Bangka Belitung 1,075 9.1 98 0.3 7 Central Kalimantan 1,938 10.4 202 0.5 8 West Sumatera 4,632 10.5 485 1.3 9 East Kalimantan 2,936 11.6 340 0.9 10 West Jawa 40,738 12.1 4,798 13.0 11 Maluku Utara 919 12.4 114 0.3

12 Jambi 2,683 12.5 334 0.9

13 Riau 6,101 13.1 800 2.2 14 West Kalimantan 4,118. 13.9 573 1.5 15 South Sulawesi 8,621 14.9 1,285 3.5 16 Sumatera Utara 12,643 14.9 1,888 5.1 17 DI Yogyakarta 3,282 19.1 649 1.8 18 East Jawa 37,478 20.1 7,348 19.9 19 Sumatera South 6,900 20.9 1,443 3.9 20 Central Jawa 32,178 21.1 6,793 18.4 21 Central Sulawesi 2,349 21.7 509 1.4 22 South East Sulawesi 2,002 21.9 438 1.2 23 Lampung 7,212 22.2 1,603 4.3 24 Bengkulu 1,568 22.4 351 0.9 25 West Nusa Tenggara 4,257 25.4 1,080 2.9 26 East Nusa Tenggara 4,355 27.9 1,213 3.3 27 Nanggroe Aceh 4,073 28.5 1,160 3.1 28 Gorontalo 941 29.0 273 0.7 29 Maluku 1,271 32.1 408 1.1 30 Papua 2,662 38.7 1,030 2.8 31 Kepulauan Riau - 32 West Sulawesi - - 33 Papua West - INDONESIA 222,192 16.66 36,959 100.0 Source: BPS 2006

2.3.1 Rural and Urban Poverty

As with regional variations in poverty indicators, national indicators disguise considerable variation, between rural and urban areas. As in many Asian countries, most people live in rural areas and poverty is concentrated in rural areas. Rural households account for about 57 percent of the poor in Indonesia and also frequently lack access to basic infrastructure services.

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Only about 50 percent of the rural poor have access to an improved source of water, compared with 80 percent for the urban poor15.

Figure 5: Urban and Rural Poverty

Source: Let's Speak Out For MDG, MDG Working Groups and UN, 2007

Nevertheless, Indonesia is experiencing rapid urbanization and increasing numbers of urban poor. Annual urban population growth rates are estimated at 3.6 percent over the last five years. In 1995, about 35.9 percent of Indonesia's population lived in urban areas and in 2005 about 48.1 percent were living in urban areas resulting in an urban population of over 101 million.16 By 2015 urban population is expected to reach 58.517.

The urban classification covers situations ranging from the mega-city to minor sub district capitals and, as infrastructure and services expand, many rural villages are being reclassified as urban18. Therefore, much of the population that is now classified as urban did not actually move.

It should also be noted that many urban households have "rural" occupations despite living in urban areas. For example, half of the total Indonesian labor force is engaged in agriculture, including 14 percent of the urban labor force and 68 percent of the rural. Around two-thirds of poor households work in agriculture. By the same token, because of the expansion of industry and because of the increased ease of commuting, particularly on Java, households living in rural areas can have occupations associated with urban locations.

15 Let's Speak Out For MDG, MDG Working Groups and UN, 2007 16 Human Development Report, 2007/2008 17 Ibid 18 From Poverty to Prosperity: A Country Poverty Analysis for Indonesia, ADB, 2006

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2.4 Key Features of Poverty in Indonesia

Many households are clustered around the national income poverty line making even many of the non-poor vulnerable to poverty.

A large number of Indonesians live just above the national poverty line. Close to 42 percent of all Indonesian people live between the US$1-and US$2-a-day poverty lines. These “near-poor” households are vulnerable to expenditure shocks, which can drive them into poverty. As a result, there is significant movement in and out of poverty. For example, while only 16.7 percent of Indonesians surveyed were poor in 2004, more than 59 percent had been poor at some time during the year preceding the survey. Recent data also indicate a high degree of movement in and out of poverty over time; over 38 percent of poor households in 2004 were not poor in 200319.

Regional disparities are considerable

Regional difference in poverty rates and number of poor are significant and this is also reflected in disparities between rural and urban areas. Rural poverty is of particular concern and is most severe in isolated populations and indigenous communities.

The income poverty measure does not capture the true extent of poverty

Non-income poverty is a more serious problem than income poverty. In Indonesia; many of those who may not be income poor could be classified as poor on the basis of their lack of access to basic services and poor human development outcomes. When all dimensions of human well-being (adequate consumption, reduced vulnerability, education, health and access to basic infrastructure) then almost half of all Indonesians would be considered to have experienced at least one type of poverty.

2.5 Government Poverty Reduction Plans

Poverty reduction is a major priority of the Government of Indonesia and has set out its polices, strategies, and initiatives to reduce poverty in two key documents

• Poverty Reduction Strategy Paper (PRSP), • Medium Term Development Plan (MTDP).

Poverty: Multidimensional problem Poverty is not only measured by income, but also includes the vulnerability and susceptibility of people, or groups of people, including both men and women, to falling into the poverty trap, and the lack of access of the poor as regards the formulation of public policies that affect their lives. Therefore, resolving the poverty problem cannot be carried out by the government alone through centralized, one-size-fits-all, short-term sectoral policies. Poverty reduction should be based on the views of the poor and the respect, fulfillment and protection [of] their basic rights, such as social, culture, economic and politic rights. Source: Indonesia PRSP, English Translation (November 2005), p.2

19 Making The New Indonesia Work for the Poor, World Bank, 2006

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The PRSP was published in September 2005 and sets out a multidimensional "rights based" approach to poverty reduction. The objectives of the PRSP are to:

• establish the commitment of central, provincial and district governments, NGOs, community organizations, the private sector, international agencies and other concerned parties to solving the poverty issue; • build a general consensus for resolving the poverty issue through basic rights and a participatory approach to formulating strategy and policies; and • underline commitment to achieving the MDGs; and (iv) harmonizing poverty reduction activities undertaken across the range of stakeholders.

The PRSP is not a budget or planning document. It is a statement of principles and general directions. It is grounded on the objective of equality in rights and benefits accrued from development programs and the related principles of participation, transparency, accountability, representation, sustainability, partnerships and integration. It addresses issues for those who qualify as poor as well as those vulnerable and at risk of becoming poor. It recognizes that poverty issues include unfulfilled basic rights of the poor to sustain and develop a life of integrity. It recognizes poverty as a multidimensional phenomenon that cannot be easily seen in absolute terms. The PRSP defines 10 basic rights as:

Availability of good quality, affordable food, improvement in the nutritional status of the poor, especially mothers, babies, and children under five;

• Availability of good quality health care; • Availability of good quality basic education that promotes gender equality; • Opportunity to work and operate private enterprises; • Availability of adequate and healthy housing; • Availability of clean and safe water and good quality sanitation; • Assurance for and protection of rights of individuals and communities to land; • Access to the poor for management and utilization of natural resources and protection of the environment; • Assurance for security from violence and conflicts; and • Improved participation of the poor in the management of poverty-related issues.

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The Medium Term Development Plan, 2004-2009 was officially released in January 2005 and incorporates the PRSP. It focuses on poverty reduction through higher growth rates with job creation and environmental sustainability, and activities and investments to achieve the MDGs. The MTDP identified five priority areas to achieve its goals:

• Job creation and poverty reduction programs; • Macroeconomic stability with stable prices, fiscal sustainability, and financial sector reforms; • Accelerating investments, exports, and tourism through reforms for a healthy business climate and flexible markets; • Improved access to and quality of education and health; and • Infrastructure development by improving the efficiency of existing services and greater private sector participation.

Indonesia has a great deal experience with designing and implementing targeted poverty reduction programs and projects, many of which were launched during the financial crisis (prior to the crisis, government run safety nets were virtually non-existent). These programs can be categorized along four lines:

• Cash transfer schemes in which the net receipts are phased out as income rises; • Benefits, in kind, of rationed/subsidized amounts of essential consumer goods provided to people below a poverty line (using means-testing); • Job Creation schemes for unskilled workers, and, • Universally available price subsidies, with no rationing, for essential goods.

Poverty reduction is central to the MTDP and the objectives of achieving a prosperous Indonesia. The MTDP reflects the rights-based approach and provides targets for the 10 basic rights. Poverty reduction strategies are becoming increasingly localized; local governments are encouraged to set up poverty reduction committees and develop their own strategies. Most recently, the Government announced that the community-driven development and conditional cash transfer programs would become the cornerstone of poverty reduction.

The MTDP targets halving the percentage of those below the poverty line to 8.2 percent by 2009 through programs to improve food security, water supply and sanitation, access to basic health and education services, and shelter. This is an ambitious target, given the official poverty incidence of 16.7percent in 2004. A parallel goal is that open unemployment should be reduced from 9.5 percent in 2003 to 5.1 percent by 2009.

The macroeconomic targets by 2009 include an increase in economic growth from 5.5 percent to 7.6 percent, and a reduction in open unemployment from 9.7 percent in 2004 to 5.1 percent. The plan projects an increase in school enrollment rates, especially in the 9-year mandatory basic education program, to over 99 percent in 2009, and better education. It also projects a significant increase in enrollment in secondary and tertiary education, and a reduction in illiteracy to 5 percent. The plan targets an increase in life expectancy from 66.2 to 70.6 years, a decline in infant mortality from 35 to 26 per 100,000 live births, a decline in maternal mortality from 307 to 226 per 100,000 live births, and a reduction in malnutrition among children under 5 from 26 percent to 20 percent.

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3. Poverty Impact and Distribution of Net Benefits

3.1 Scope of Poverty Impact Analysis

The ADB has contracted a separate Consultant to carry out the economic analysis of the project. Section 3.3 of this report summarizes the results of that evaluation.

The project's economic benefits are primarily derived from savings in vehicle operating costs (VOC) savings and travel time savings (TTS) that will accrue primarily from improvements in road surface, horizontal and vertical alignment, and increased average speed in some sections. Separate EIRRs have been calculated for each sub-project in Java20 (15 sub-projects comprised of 59 roads links).

This poverty impact analysis (PIA) calculates the EIRR for the Java corridor as a whole and provides the distribution of the direct economic benefits among different beneficiaries and calculates the Poverty Impact Ratio (PIR) for the project.

3.2 Methodology of PIA

This Poverty Impact Analysis and Distribution Analysis of Net Benefits has been conducted in accordance with ADB’s Handbook on Poverty and Social Analysis and Handbook for Integrating Poverty Impact in Economic Analysis of Projects. The main steps undertaken in this PIA are broken down into the following sets or interlinked analyses and tasks: • Using primary and secondary data, construct poverty profiles that identify and describe the extent, depth and characteristics of poverty in the project area; • Carryout surveys in the project area to provide information on road users by poor and non- poor beneficiaries that will allow an analysis that distributes the project’s net benefits among the different categories of beneficiaries; • Analyze structural constraints in the transport sector that may hinder the participation of the poor; and • Carryout a poverty impact analysis that estimates the proportion of the net benefits likely to accrue to poor and non-poor beneficiary groups

The processes described above identifies poverty levels in the project area and defines poor and non-poor road users. It permits an approximation of the proportion of the poor and non-poor who use and operate transportation services on the project road, and whether they are vehicle owners or operators, passengers or using freight services. Hence, analysis of poverty profiles within this section of the report are discussed in the context of poor and non-poor road users. Poverty profiles are discussed and analyzed in relation to the social impacts of the project in Section 4.

3.3 Economic Evaluation of Project

The economic appraisal for each subproject has been based on all construction work taking place in year one with a life cycle period covering 20 years. In all cases the appraisal compares a project case (with the roads being improved with partial overlay and widening or full

20 At the time of writing this report, the economic analysis for the Kalimantan road improvements in not available.

Preparing the Regional Roads Development Project – Final Report 23 Annex 7 Poverty and Social Assessment reconstruction) with a without-project do minimum alternative comprising limited investment on the existing route. A 12 percent discount rate is used throughout.

The evaluation uses last quarter 2008 economic prices and is based on other concurrent projects. Additional benefits to “normal” traffic (i.e. traffic that would have been present in the do minimum case) results from improvements in road and traffic conditions between the do minimum and project case and amount to savings in (i) VOCs, (ii) personal travel time for vehicle occupants (other than drivers and crew, whose costs are included in VOCs), (iii) road accident costs and (iv) the value tied up in freight during transit. In addition there are the expected benefits of additional trips made solely as a result of the lower costs brought about by the project (“generated” traffic) and the gains and losses to the new corridor as a result of passengers and goods choosing to divert from existing more northern corridors (in Java). The Kalimantan roads will be evaluated in the same way, i.e. focusing on conventional road user benefits and taking no account of any additional economic gains that may be induced by the introduction of new road capacity.

The EIRR for the projects vary from subproject to subproject but in most cases the project’s EIRR are above the threshold or very close. West Java projects range between 12-25%, Central Java from 12 to 50% and Yogyakarta from 14 to 35% (and these are all 7 m planned roads). For East Java the EIRR range from 7 to 35%. This is indicative of the fact that the terrain in this area is perhaps the more difficult and therefore more expensive to build and the existing traffic is the lowest. In Kalimantan due 1) to the condition of the current roads in East Kalimantan and 2) the current impassable nature of the road for much of the year, the EIRR are low (assumed traffic of 300 AADT) and generally less than 10%. In West Kalimantan the main route from Sosok to Tayan has EIRR 16 to 21% (for widening to 7m) and the new route from Singkawang to Aruk ranges from 2 – 10%.

Sensitivity analyses confirm the robustness of the Java corridor subprojects with those that are already 10% and above, being little affected by an increase of up to 10% in construction costs or lower than expected VOC benefits (as much as 20%). Changes in the principal variables, e.g. construction costs, traffic growth, benefits do not have a significant impact on economic viability, and the EIRR remained above the threshold of 12 percent in most cases. An annual traffic growth has been assumed of around 5.6% and it is expected though not include in the analyses that should the corridor be built to the standard intended, and additional 2% traffic could divert to it from neighboring corridors. The economic analysis of the project also reviewed the viability should motor cycle benefits be excluded. In most cases the viable links remained viable.

3.4 Poverty Impact Analysis

In order to undertake the poverty impact analysis an EIRR has been calculated for the Java corridor as a whole. The analysis uses the same methodology used in the project Economic Analysis. Direct economic benefits are comprised mainly of VOCs and TTS as follows:

• Vehicle Operating Cost (VOC) Savings are mainly determined by surface roughness and speed and VOC savings are calculated by vehicle type. The economic returns are mainly in the form of savings in road user costs due to the provision of a better road facility.

• The analysis for this study used the following conventional motorized vehicles vehicle types:

! Motor Cycle ! Car/Jeep/4WD ! Mini bus ! Medium Bus ! Large Bus

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! Light Goods Vehicle and Light Truck ! Medium Truck ! Heavy Truck ! Articulated Truck

• Travel time savings are obtained when road improvements lead to an increase in vehicle speeds, thus reducing the journey times of passengers. These are the savings in time to the occupants of vehicles other than crew. A value of time per hour for each vehicle type is applied as a unit cost to journey times to produce passenger time costs. Although, both VOC savings and passenger time costs can be derived together as road user costs, passenger time savings are less tangible as benefits than VOC savings, hence, it is desirable to show them separately so that their impact on the results is apparent. The economic analysis for the project has taken them into account and their unit values have been kept constant throughout the evaluation period in terms of $/passenger hour.

• The project start year is defined as 2010. Road sections were given an economic life of 20 years. • Recurrent/Maintenance Costs are estimated to be 0.8 percent of capital costs • Zero residual value is assumed. • Conversion of financial costs to economic costs is obtained by using a factor of 0.85. • A shadow wage rate of 0.85 is assumed.

The forecast annual flows of benefits and costs for the Java Corridor are shown at Table 9 below. The analysis finds that the Java corridor as a whole has an EIRR is 23.9 percent with an NPV of Rp. 4231.4 billion.

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Table 9: Annual Flows of Benefits and Costs (Rp. bn 2010–2029) Costs Savings Year Capital Recurrent VOC Time TOTAL 2010 -3444.0 0.0 0.0 0.0 -3444.0 2011 0.0 0.0 409.3 66.5 475.8 2012 -351.8 0.0 531.2 80.7 260.1 2013 0.0 0.0 464.7 73.4 538.1 2014 0.0 0.0 594.4 89.7 684.2 2015 0.0 0.0 707.2 103.3 810.5 2016 0.0 0.0 838.5 119.3 957.7 2017 -160.7 0.0 998.8 140.0 978.2 2018 0.0 0.0 1137.4 158.5 1295.8 2019 0.0 0.0 1349.6 186.9 1536.5 2020 338.3 0.0 1508.8 207.2 2054.2 2021 0.0 0.0 1717.5 230.2 1947.7 2022 -351.8 0.0 1832.3 245.2 1725.6 2023 0.0 0.0 1408.7 202.8 1611.5 2024 0.0 0.0 1705.1 240.4 1945.5 2025 0.0 0.0 1961.2 267.8 2228.9 2026 0.0 0.0 2136.2 287.0 2423.3 2027 -160.7 0.0 2274.1 305.8 2419.3 2028 0.0 0.0 2367.4 315.6 2683.0 2029 0.0 0.0 2529.2 337.2 2866.4 TOTAL -4,130.7 0 26,471.6 3657.4 25,998.3 EIRR = 0.239 NPV = 4,231.5 Discounted Cost and Benefit Stream BCR = 1.25 Capital Recurrent VOC Time Total NPV -3,394.6 6,680.8 945.3 4,231.5 Source: Project Analysis

3.4.1 Distribution of Economic Benefits

“The poverty-reducing impact of a project is traced by evaluating the expected distribution of net economic benefits to different groups. The first step is to estimate the present value of net financial benefits by participating group. The difference between net benefits by group at economic and financial prices is added to net financial benefits by group to give the distribution of net economic benefits by group. Finally, the net economic benefits accrue to the poor according to the proportion of each group that is poor. A poverty impact ratio expressing the proportion of net economic benefits accruing to the poor can be calculated by comparing net economic benefits to the poor with net economic benefits to the project as a whole.”21

Hence, the poverty impact analysis continues the focus on the investment component of the project but extends the standard economic analysis to distribute benefits in terms of VOC savings and road user time savings among categories of beneficiaries. In moving from the traditional economic analysis to the poverty impact analysis, a number of activities have been carried out, including road user surveys, analyses of poverty data and key informant interviews to prepare poverty and road user profiles for the project area.

In addition to the share going to the poor, the benefit distribution analysis also estimates the percentage of government benefits that can be attributed to the poor and estimates the direct

21 Handbook for Integrating Poverty Impact Assessment in the Economic Analysis of Projects: Asian Development Bank, July 2001, Appendix 1, page 7

Preparing the Regional Roads Development Project – Final Report 26 Annex 7 Poverty and Social Assessment net benefit to labor during construction. Together, these allow the calculation of the poverty impact ratio of the project.

The net benefits have been distributed among the following beneficiaries: • Users of passenger transport; • Users of freight transport; • Vehicle owners and operators (private sector); • Labor; and, • Government/Economy.

The distribution of benefits between poor and non-poor beneficiaries depends on a number of factors. The estimated share of benefits going to the poor as compared to the non-poor depend on the degree to which the each group use the roads and the modes of transportation used by each group. The degree of competition in the transport service markets also impacts on the extent to which benefits are distributed. For example, if passenger and freight service markets are very competitive, then a large share of the net benefits should be passed on to users in the form of lower passenger fares and freight rates. Again, the extent to which these benefits are passed on to the poor will depend on the extent to which they use transport services. The PIA uses the project’s road user survey to estimate these variables.

3.5 Road User Profiles

3.5.1 Impact Area

Effort has been taken to provide accurate and detailed poverty and road user profiles for the impact areas through the Project Road User Survey (PRUS) and secondary data. Hence, poverty rates, vehicle ownership and road use patterns are specific to the project areas.

3.5.2 Poor in the Project Area

Overall, the PRUS found that the project area had a poverty rate of 17.3 percent.22 The PRUS found that both poor and non-poor residents are heavy road users with over 91 percent of people living in the project area using the roads daily and almost 100 percent using the roads at least several times a week. Details of frequency of use and destinations are provided in the Section 4 of this report.

22 This is slightly lower than government statistical data which provides an overall poverty rate of 19.3 percent for the project area.

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3.5.3 Poor and Non-Poor Road Traffic Proportions

Using the same selection of vehicle types adopted for the economic evaluation, local road users were asked a series of questions to construct a profile of road usage by vehicle type for poor and non-poor groups. PRUS respondents were asked which type of transport they usually used for the following: • Short trips to and from home • Trips to work • Trips to school and health services • Trips to local market • Transporting goods to market or point of sale • Trips to district centre • Trips to provincial centre

In total this approach allowed the PRUS to capture data for 1,035 passenger and freight transport events. Both the poor and non-poor use motorcycle transport extensively with motorcycles accounting for 63 percent of all motorized transport events. Overall, the use of motorcycle transport by the poor accounted for only 10.3 percent of motorcycle usage. There were no major differences between the regions by vehicle type when examining the raw data for both poor and non-poor. The proportion of road traffic accounted for by the poor and non-poor by vehicle type is presented in Table 10 and 11 below.

Table 10: Poor and Non-poor Passenger Road Transport by Vehicle Type Medium Light Car/ Medium Motor Mini-Bus Bus Truck Heavy Motor Jeep Truck Cycle (12-25 seats) (25-60 (1- Truck Cycle /4WD (3,5-5T) seats) 3,5T) Passenger Transport: Number of Travel Events by Vehicle Type Poor 107 13 63 18 0 0 0 107 Non-Poor 928 239 223 49 8 1 0 928 Survey 1035 252 286 67 8 1 0 1035 Passenger Transport: Percentage Travel Events by Vehicle Type (%) Poor 10.3 5.2 22.0 26.8 0 0 0 10.3 Non-Poor 89.7 94.8 78.0 73.2 100 100 0 89.7 Survey 100 100 100 100 100 100 0 100 Source: Project Road user Survey

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Table 11: Poor and Non-poor Freight Transport by Vehicle Type Medium Car/ Light Medium Motor Mini-Bus Bus Large Heavy Jeep Truck Truck Cycle (12-25 seats) (25-60 Bus Truck /4WD (1-3,5T) (3,5-5T) seats) Freight Transport: Number of Travel Events by Vehicle Type Poor 56 0 0 0 12 2 0 56 Non-Poor 185 2 0 0 35 5 0 185 Survey 241 2 0 0 47 7 0 241 Freight Transport: Percentage Travel Events by Vehicle Type (%) Poor 23. 0 0 0 25.5 28.6 23.2 0 Non-Poor 76. 100.0 0 0 74.5 71.4 76.8 0 Survey 100 100 0 0 100% 100 100 0 Source: Project Road user Survey

3.5.4 Vehicle Ownership and Competitiveness of Transport Services

The structure and performance of the transport market within the project area will also impact on the degree of benefits that are passed on to passengers and to freight shippers. These factors are important because a reduction in the costs of using the roads will initially be absorbed by the owners and, in some cases, operators of the vehicles. Table 12 below presents the ownership data captured by the PRUS for the project.

Table 12: Vehicle Ownership by Vehicle Type Medium Medium % Car/ Mini-Bus Light Motor Bus & Total All Ownership Jeep (12-25 Truck Cycle (25-60 Heavy Vehicles Poor and /4WD seats) (1-3,5T) seats) Truck Non-Poor Number of Vehicles Owned Poor 21 - - - - - 21 7.9% Non-Poor 201 35 - - 7 2 245 92.1% Survey 222 35 - - 7 2 266 100.0% Source: Project Road user Survey

Overall, the PRUS found that 7.9 percent of motorized vehicles were owned by the poor, and that vehicle ownership among the poor was exclusively motorcycles. Out of 393 respondents, 222 or 56.5 percent owned a motorcycle. Out of 222 motorcycles, only 21 were owned by poor residents, accounting for 9.5 percent of all motorcycle ownership.

Both poor and non-poor owners use their motorcycle to generate income by carrying freight and passengers. All motorcycle owners stated that passenger and freight fares were set by negotiation and there was competition in the market. Discussion with truck drivers also revealed that fares were set by operators and were depended on distance and freight. Discussion with the local bus owners revealed that municipal bus fares were set be local government regulation but that mini-buses and other small passenger and freight transport were set by operators. This reflects the general structure of the transport industry in Indonesia where there is government regulation but most sectors are highly competitive.

Based on the results of the PRUS discussed above, the consultant concludes that the passenger and freight service markets in the project area are competitive and a share of benefits should be passed on to users in the form of lower passenger fares and freight rates.

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Based on the evidence from other road project23 and the consultant’s experience it is estimated that 50 percent of VOC savings will be passed on to users of passenger services and 70 percent will be passed on to users of freight services in the project area.

3.6 Distribution of Benefits to the Poor

The distribution analysis has been conducted in accordance with ADB’s Handbook on Poverty and Social Analysis and Handbook for Integrating Poverty Impact in Economic Analysis of Projects.

The PIR analysis distributes the economic benefits (VOC savings, time savings and government savings) to poor and non-poor beneficiaries of the project. In addition, the PIA includes an estimate of direct benefits accruing to labor during construction of the roads. The assumptions for the distribution analysis are summarized below and are based on findings from the PRUS discussed above and other referenced transport studies.

All benefits are distributed among the following categories of stakeholders: (i) end users of passenger transport, (ii) end users of freight transport, (iii) transport providers and users of own motorized transport, (iv) unskilled labor, and (v) Government/ economy. The share of each of these benefit categories accruing to those in poverty has been estimated.

3.6.1 Assumptions for Distribution of Road User Benefits

Economic Standard Conversion Factor: For the evaluation costs and benefits have been calculated from unit prices expressed in economic terms, rather than actual market, or financial, prices to reflect the resource cost or value of an item to the country. An SCF of 0.85, as used in the economic evaluation of the project, has been adopted for this study.

Proportion of Road Traffic Accounted for by the Poor and Non-Poor: The project road user surveys found that 17.3 percent of all road users were poor. Both poor and non-poor use the roads heavily almost 100 percent of both poor and non-poor groups using the road daily or several times a week.

VOCs - Share From Passenger, Freight and Own Use Transport: The share of VOCs arising from passenger and freight vehicles as well as the proportion from vehicles not used for public transport have been estimated for the road using data obtained from the PRUS and from the project’s economic evaluation.

Motorcycles Ownership and Usage: Motorcycles are used both for passenger and freight transport. Data from the PRUS has been used to estimate the proportion of motorcycle VOCs from motorcycle passenger, freight and own use transport. Both poor and non-poor owners use their motorcycle to generate income. The PRUS found that: • 100 percent of motorcycle drivers own their motorcycle

23 The ADB Central Region Transport Network Project 2004 and the ADB Greater Mekong Southern Coastal Corridor 2006, estimated that 50 percent of VOC savings will be passed on to users of passenger services and 70 percent will be passed on to users of freight services in the Project area.

Poverty Impact of Rural Roads and Markets Improvement & Maintenance Project of Bangladesh, Workshop", India Habitat Center, New Delhi, 2000. The Bangladesh road improvement project has a number of similar features to Phase 1: the roads were rural earthen roads that were often impassable during the wet season and, motorized transport included a wide variety of owner operated auto rickshaws, jeeps, motorcycles, pickup vans, bus and trucks. This study found that freight transport charges in the first year after road improvements were nearly 70 per cent lower as compared to the earthen roads that prevailed before road improvements. In addition, the study found that freight transport charges fell by another 8 per cent over the five years after road improvements.

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• 21 out of 222 or 9.5 % of MC were owned by the Poor; 61.9% of Poor MC owners use their MC for Income generation carrying passengers 44.3 % of the time and carrying freight 55.7% of the time • 482 out of 557 or 86.5 percent of motorcycles were owned by the non-poor; 201 out of 222 or 90.5 % of MC were owned by the Non-Poor; 35.8% of Non-Poor MC owners use their MC for Income generation carrying passengers 45.7 % of the time and carrying freight 54.3 % of the time

These proportions have been applied to determine to the percentage of VOC savings that arise from freight and passenger motorcycle transport. The amounts of VOC savings being from freight and passenger motorcycle transport are then added to VOC savings from designated freight and passenger vehicles respectively to arrive at the total VOC savings being from all freight and all passenger transport.

Time Savings - Share of Passenger, Transport Providers and Own Use: Travel time savings are obtained when road improvements lead to an increase in vehicle speeds, thus reducing the journey times of passengers. Where drivers are assumed to be paid crew their time is included as a component of VOCs. Most vehicles, including many cars, have a paid driver. Thus, driver time savings for all designated freight vehicles and for all other motorized transport except motorcycles have been included in VOCs estimated in the project’s economic evaluation and no owner/operator time savings have been included for these motorized vehicles.

Therefore, in the project economic analysis, motorcycles do not have crew costs since motorcycle riders are considered under the ‘passenger travel time’ calculation. However, for the PIR calculations, estimates of travel time savings for motorcycles need to be disaggregated between motorcycle owners who use their motorcycles commercially and those that do not in order to distribute time savings between passengers and owner-users. The share of VOC and TTS from passenger and freight traffic is shown in Table 13 and the share of total time savings to end users of passenger and freight transport are also provided in Table 14.

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Table 13: Share Of VOC and Times Savings Being From Passenger and Freight Traffic

DETERMINATION OF THE SHARE OF VOCS BEING FROM PASSENGER TRAFFIC ($mn) % of MC Share of MC Share of VOCs # of Motor VOCs From MC # of MC Used for % of MC Used for MC VOCs being Sum of VOCs from Sum of VOCs ALL Owned by Usage for being from Cycle Poor and Non- Income Income from Passenger Designated Passenger Poor and Non- Passenger passenger Owned Poor Generation Generation Public Transport Passenger Vehicles Transport Poor Transport transport Poor 21 9.5% 337.2 13 61.9% 44.3% 92.5 Non-Poor 201 90.5% 3,227.7 72 35.8% 45.7% 528.4 Total 222 100% 3,564.9 85 45.5% 620.9 2,020.6 2,641.5 39.5% DETERMINATION OF THE SHARE OF VOCS BEING FROM FREIGHT TRAFFIC % of MC Share of VOCs # of Motor VOCs From MC # of MC Used for % of MC Used for Share of MC MC VOCs being Sum of VOCs from Sum of VOCs ALL Owned by being from Cycle Poor and Non- Income Income Usage for Freight from Freight Designated Freight Freight Poor and Non- Freight Owned Poor Generation Generation Transport Transport Vehicles Transport Poor transport Poor 21 9.5% 337.2 13 61.9% 55.7% 116.3 Non-Poor 201 90.5% 3,227.7 72 35.8% 54.3% 627.8 Total 222 100.0% 3,564.9 85 97.7% 54.5% 744.1 1,095.23 1,839.3 27.5% DETERMINATION OF THE SHARE OF TIME SAVINGS FROM MC TO OWNERS AND PASSENGERS TS to End Users Total MC TTSs Share of Time % of MC of MC Public Total TS From Time Savings to # of Motor Share of MC TS % of MC Used for being from Savings to End Owned by # of MC Used for Transport: Designated Pass End Users Being Cycle Poor and Non- Income Passenger Public Users Being Poor and Non- Public Transport Vehicles (Car/ jeep/ From Public Owned Poor Generation Transport (33.3 % :1.5 pass From Public Poor buses) Trans-port Vehicles occupancy Transport including driver) Poor 21 9.5% 477.9 13 61.9% 295.8 98.6 Non-Poor 201 90.5% 4,574.0 72 35.8% 1,638.4 546.1 Total 222 100% 5,051.9 85 1,934.3 644.8 2,457.2 3,101.9 40.7%

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Table 14: Passenger and Freight VOC and Time Savings Share of Time Share of Share of Time VOCs Savings to VOCs VOCs VOCs Savings to Total From End Users Being From Being Total Time End Users VOCS Passenger Being from Freight from Savings Being Transport From Passenger Transport Freight From Public Transport Transport Public Transport Transport 6,680.8 2,641.5 39.5% 1,839.3 27.5% 7,626.0 3,101.9 40.68%

Overall, for the project the NPV of VOC savings are Rp. 6,680.8 billion. The share of VOC savings being from freight transport is 27.5 percent, or Rp. 1,839.3 billion and the share of VOC savings from passenger transport is 39.5 percent, Rp. 2,641.5 billion. The remainder of VOC savings will accrue to owners of vehicles who do not use their vehicles for public transport.

The consultant's estimate on Government ownership across commercial and non-commercial vehicle classes is small. Motorcycles, buses and trucks remain largely in the private sector and, therefore, no specific benefit has been estimated for the small share of state owned vehicles to accrue to the Government.

Capital Labor Requirements: Labor will be required for the capital works and a portion of this will be poor, unskilled labor. To ensure that the majority of unskilled labor is hired from poor households in the project area during construction, contracting documents will explicitly state that local people must be given first option for this employment. Labor costs for the project are estimated based on labor being 15 percent of capital with 30 percent of capital labor being unskilled.

Road Maintenance Costs: Recurrent/Maintenance Costs are estimated to be 0.8 percent of capital costs. Maintenance labor is estimated to be 25 percent of maintenance cost and that 10 percent of maintenance labor will be unskilled. The poor’s share of unskilled labor is 100 percent.

Shadow Wage Rate for Labor: The market cost of labor can differ from its opportunity cost. Often, skilled labor is not in surplus so the market price for skilled labor is taken as the opportunity cost. Unskilled labor, on the other hand is often in surplus. A “shadow price” is used to place an economic value on the wages paid to unskilled labor. Wages paid are multiplied by the shadow wage rate factor (SWF) to derive the economic opportunity cost. Whenever a cost item has a lower economic than financial value, someone must gain an income greater than that captured by the price of the item in the financial analysis. For a project that employs surplus labor at a higher cost than the opportunity cost of that labor, the difference between the financial and economic value of labor will be a net gain to labor and a net loss to the owners of the project. Hence, employment of surplus labor in the project area is a net gain to the workers and a net loss to the government/economy by the difference between the actual payroll (financial cost) and its economic value measured by the shadow wage rate. Shadow wage rates for rural and skilled labor estimated at 0.55 and 0.85 respectively, an intermediate factor of 0.70 is applied for the shadow wage rate of the poor. Government/Economy: Both benefits and cost accrue to the government. Hence, a parameter in poverty impact analysis is the extent to which government expenditure and taxation accrue to the poor. To apply the approach rigorously requires an estimate of the benefit/tax incidence for the poor from marginal government expenditure and finance.

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Unfortunately, such estimates are rarely available. Hence, for this study the consultant uses the “rule of thumb” of 10 percent24 of the net Government/Economy loss accrues to the poor.

Capital costs are also incurred by the government and a rigorous estimation of the PIR would need to take into account the share of capital costs that would accrue to the poor. However, the analysis and PIR provided in this study does not attempt to explicitly estimate this parameter and assumes that the share of the capital cost to the poor will be minimal and will not significantly impact on the PIR.

3.7 Summary of Distribution Analysis and Poverty Impact Ratios

This section provides the PIR calculations for the project. A summary of estimates and assumption is provided in Table 15.

Table 15: Estimates and Assumptions Held Constant for All Sections Economic shadow price 85.0% Poor shadow wage 70.0% Passenger share of VOC savings 50.0% Freight user share of VOC savings 70.0% Poor share of unskilled labor 100% Poor share of government expenditure 10.0% Government's Share of Passenger and Freight Vehicles assumed nil Share of VOC savings being from public passenger transport vehicles 39.5% Share of VOC savings being from freight transport vehicles 27.5% Poor share of public passenger transport usage 16.3% Poor share of public freight transport usage 23.2% Poor users of own mechanized transport 7.9% Share of Time Savings to End Users Being From Public Transport 40.7%

The estimated direct benefits to the economy in present value terms and the calculation of the PIR are presented in Table 16, using a discount rate of 12 percent. The estimated direct benefits of the project are Rp. 7,626.0 billion (VOCs 6,680.8 + TTS 945.3) in present value terms. These figures simply represent the sum of the present value of benefits to passengers, freight users, vehicle owners, and the Government. The net benefit to the economy as a whole is Rp. 5,176.7 billion. The PIR has been calculated as 0.138. This is a conservative estimate, because only direct benefits of the project have been considered. The PIR reflects the low level of poverty (17.3 percent) and the low level of vehicle ownership among the poor (only 7.9 of all motorized vehicles).

24 Handbook for Integrating Poverty Impact Assessment in the Economic Analysis of Projects: Asian Development Bank, July 2001, page 20-21.

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Table 16: Project PIR Economic Financial Present Economic Passenger Freight Vehicle Item Present Labor Gov/ Net Value – Financial Users Users Owners Value Economy

Benefits VOCs Road - User Benefits 7,626.0 7,626.0 1,507.6 1,469.7 4,648.7 Time Saving - Benefits 945.3 945.3 384.5 560.8 Cost Capital Less - 3,511.1 - 2,885.4 625.7 Capital Labor 625.7 Maintenance Less Main. - 32.2 - 6.8 39.0 1.583 Labor Capital Labor - 619.6 - 509.2 110.4 8.450 Maintenance - 8.3 - 6.8 1.5 0.060 Labor

Net Present - 4,171.1 5,176.7 9,346.4 1,892.1 1,469.7 5,209.5 111.9 664.7 Value

Gains and Losses 1,892.1 1,469.7 5,209.5 111.9 - 3,506.5 5,176.7 Proportion of the Poor (%) 0.163 0.232 0.079 0.039 0.100 Net Benefits for the Poor 307.5 341.5 411.3 4.4 - 350.6 714.0 Poverty Impact Ratio 0.138 Net loss to Government/Economy (-3,506.5) is calculated as -4,171.1 + 664.7

3.7.1 Sensitivity Analysis

A sensitivity analysis has been preformed to examine the impact on the PIRs given a change in the assumptions with respect to the degree of competition in the transport service sector. The assumptions used above was that 50 percent of VOC savings from passenger transport will be passed on to passengers and that 70 percent of freight VOC savings from freight transport will be passed on to freight shippers.

Scenario 1, Table 17, assumes a more highly competitive transport service market that would see 70 percent of VOC savings passed on to passengers and 85 percent of freight VOC savings passed on to freight shippers. Conversely, Scenario 2, Table 18, assumes a less competitive transport service market where only 25 percent of VOC savings would be passed on to passengers and 50 percent of freight VOC savings passed on to freight shippers. These scenarios alter the net benefits arising from VOC savings passed on to all users not only poor users of transport services, while all other benefit categories remain unchanged.

It can be seen that an increase in competition leads to an increase in the PIR and conversely a decrease in competition leads to a reduction in the PIR. However, the PIR for the project ranges between 0.157 and 0.113 under these two scenarios.

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Table 17: PIR With Increased Competition Scenario 1: 70 % of Passenger Transport VOCs Passed on to Passengers and 85% of Freight VOCs Passed on to Freight Shippers Economic Financial Present Economic Passenger Freight Vehicle Item Present Labor Gov/ Net Value – Financial Users Users Owners Value Economy

Benefits VOCs Road - User Benefits 7,626.0 7,626.0 2,110.8 1,784.6 3,780.8 Time Saving - Benefits 945.3 945.3 384.5 560.8 Cost Capital Less - 3,511.1 - 2,885.4 625.7 Capital Labor 625.7 Maintenance Less Main. - 32.2 - 6.8 39.0 1.583 Labor Capital Labor - 619.6 - 509.2 110.4 8.450 Maintenance - 8.3 - 6.8 1.5 0.060 Labor

Net Present - 4,171.1 5,176.7 9,346.4 2,495.1 1,784.6 4,291.5 111.9 5,176.7 Value

Gains and Losses 2,495.1 1,784.6 4,291.5 111.9 -3,506.5 5,176.7 Proportion of the Poor (%) 0.163 0.232 0.079 0.039 0.100 Net Benefits for the Poor 405.5 414.7 338.8 4.4 -350.6 812.8 Poverty Impact Ratio 0.157 Net loss to Government/Economy (-3,506.5) is calculated as -4,171.1 + 664.7

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Table 18: PIR With Decreased Competition Scenario 2: 25 % of Passenger Transport VOCs Passed on to Passengers and 50% of Freight VOCs Passed on to Freight Shippers Economic Financial Present Economic Passenger Freight Vehicle Item Present Labor Gov/ Net Value – Financial Users Users Owners Value Economy

Benefits VOCs Road - User Benefits 7,626.0 7,626.0 753.8 1,049.8 5,822.4 Time Saving - Benefits 945.3 945.3 384.5 560.8 Cost Capital Less - 3,511.1 - 2,885.4 625.7 Capital Labor 625.7 Maintenance Less Main. - 32.2 - 6.8 39.0 1.583 Labor Capital Labor - 619.6 - 509.2 110.4 8.450 Maintenance - 8.3 - 6.8 1.5 0.060 Labor

Net Present - 4,171.1 5,176.7 9,346.4 1,138.3 1,049.8 6,383.2 111.9 5,176.7 Value

Gains and Losses 1,138.3 1,049.8 6,383.2 111.9 -3,506.5 5,176.7 Proportion of the Poor (%) 0.163 0.232 0.079 0.039 0.100 Net Benefits for the Poor 185.0 243.9 503.9 4.4 -350.6 586.6 Poverty Impact Ratio 0.113 Net loss to Government/Economy (-3,506.5) is calculated as -4,171.1 + 664.7

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4. Project Area Social Assessment

The Project target corridors are located on the islands of Java and the Indonesian part of Borneo. Project work on the island of Java encompasses the South of the Southern Trans Java Highway (STJH) in West Java, Central Java, East Java and Yogyakarta Provinces. On Borneo project roads are located in West and East Kalimantan Provinces with a focus on areas of interest near the Malaysia border. In both instances these are not developed corridors but the hope is to create functional and efficient corridors in these areas that are not currently serviced by adequate road networks.

Table 19: Project Road Improvements by Province Project Road Improvements Population % of Project Provinces km as % of 2006 Indonesian Km Subcom- Population ponent (000's) West Java 83.6 5.8 40,738 17.8 Central Java 125.8 8.7 32,178 14.5 DI Yogya 162.3 11.3 3,289 2.5 East Java 553.4 38.4 37,478 16.5 West Kalimantan 307.3 21.3 4,118 1.9 East Kalimantan 209.0 14.5 2,936 1.3 Project Area 1,441.4 100.0 118,763 53.5 Source: Project Documents

4.1 Overview of Java

Home to over 60 percent of Indonesia’s population, the crowded islands of Java is the hub of the country’s political and economic life. Despite mountainous terrain Java is Indonesia’s most industrialized and urbanized island, with two major industrial centers of Greater Jakarta and Surabaya. However, over-population, together with a relative dearth of natural resources, also means that pockets of poverty exist in the region. Recently, the region was shocked by 7.2 on Richter-scale earthquake that followed by small-scale tsunami. The earthquake was followed by two large aftershocks which both measured up to 5.9 and 6.1 on Richter scale respectively.

Table 20: Java GDP as % of National Total As Java is the industrial center of Indonesia, Combined, the four Project provinces of West, Central roads in Java account for a major share of and East Java and Joyakarta made up 37.6 percent of the nation's total GDP in 2006. domestic freight and passenger land travel and Sector % their coverage and condition is crucial to Agriculture, livestock, forestry and Fisheries 45.4% supporting economic growth and social development. Mining and quarrying 7.2% Manufacturing industry 47.9% Overall, the Java region has the highest share of Electricity, gas, and water supply 82.1% nation's manufacturing sector and the trade and Construction 19.9% restaurants and hotels sector and, the four project Trade, Hotel and Restaurant 57.3% Java provinces are key contributors, accounting Transport and Communication 32.0% for more than 48 and 58 percent of the national Financial, Real estate and Business Services 17.1% total respectively. While these four provinces Services 31.5% contribute over 45 percent to the country's Java Project Area as a % of Total 37.6% agricultural GDP, agriculture comprises only a Economy small share of their total provincial GDP. For Source: National and Provincial Statistics Annual Statistics example, the agriculture sector accounts for only Books 2007 about 15 provincial of combined GDP, while

Preparing the Regional Roads Development Project – Final Report 38 Annex 7 Poverty and Social Assessment manufacturing accounts for almost 36 percent. Reflecting their relatively scarce natural resources, these provinces contribute 7.2 to national GDP from extractive industries and this sector accounts for only 2 percent of their combined GDP.

National arterial roads in Java are in relatively good condition but are highly congested pushing up costs for industry and trade. Provincial roads suffer from underinvestment in preservation. Thus, the project responds to a growing backlog of investment needs for network improvement and extension in the region. The improved south Java corridor offers the potential to lower congestion, reduce delays and operating costs, thereby stimulating economic growth as well as improving safety.

While the overall poverty rate of these four provinces is 17.5 percent, just slightly above the national average, due to large populations they contain more than 53 percent of the poor in Indonesia. Many poor kabupaten with poverty rates well above 20 percent are found in western coastal area where the project roads are located. The region of Java has the lowest workforce proportion engaged in agriculture, at only 36 percent. However, the project area is mainly rural and the majority of the population work in the agricultural or fishing sectors.

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Table 21: GDP of Project Provinces in Java (Current Market Price 2006)

Economic Sector West Java Central Java East Java Di Yogyakarta

Billion Rp % Billion Rp % Billion Rp % Billion Rp % Agriculture, livestock, 52,653 11.1 57,365 20.3 80,746 4,574 15.5 forestry and Fisheries 17.2 Mining and quarrying 12,875 2.7 2,870 1.0 9,711 2.1 218 0.7 Manufacturing industry 214,242 45.2 92,646 32.9 137,716 29.3 4,078 13.9 Electricity, gas, and water 12,689 2.7 3,153 1.1 8,730 376 1.3 supply 1.9 Construction 14,349 3.0 15,962 5.7 16,280 3.5 2,867 9.7 Trade, Hotel and 91,885 19.4 55,363 19.6 131,600 5,598 19.0 Restaurant 28.0 Transport and 27,831 5.9 16,802 6.0 26,240 3,050 10.4 Communication 5.6 Financial, Real estate and 12,755 2.7 9,592 3.4 21,305 4.5 2,756 9.4 Business Services Services 34,278 7.2 28,244 10.0 38,298 8.1 5,900 20.1 Gross Domestic Product 473,557 100.0 281,997 100.0 470,627 100 29,416 100.0 As a Percent of Indonesia 14.2% 8.4% 14.1% 0.9% Economy Source: Provincial Statistical Yearbooks

4.1.1 West Java

West Java, with a population of 40.7 million and is the most populous province of Indonesia. It borders Jakarta and Banten province to the west, and Central Java to the east. To the north is Java Sea and to the south is the Indian Ocean. Unlike most other provinces in Indonesia which have their capitals in coastal area, the provincial capital Bandung is located in a mountainous area. Economic activity is dominated by the manufacturing sector which accounts for 45 percent with the trade, hotel and restaurant sector a distant second at with 19 percent of the provincial GDP.

At 12.1 percent, the province of West Java has a relatively low poverty rate but with its high population has the third highest number of poor, 4,798 thousand, in the country. The project districts are relatively poorer, with an overall poverty rate of 14.5 percent and, due to high population density, have the highest number of poor among the projects provinces at 2.1 million.

The province's landscape is one of volcanic mountains, steep terrain, forest, mountains, rivers, fertile agricultural land, and natural sea harbors. It has an area of 34,736 km! and, aside from the province of Jakarta, it is the most densely populated province in the country with an average of 1,150 people per km!.

4.1.2 East Java

East Java is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. The administrative center of the province is located in Surabaya, the second largest city in Indonesia and a major industrial center and port. The manufacturing sector and the trade, hotel and restaurant sector account for about 29 and 28 percent of economic activity respectively with agriculture at 17 percent.

East Java has 37 million inhabitants, second only to West Java among Indonesian provinces and has a population density of 1,124 people per km!, the highest of the project areas. It has a poverty rate of 20.1 percent and with 7,348 thousand poor, has the highest number of poor out

Preparing the Regional Roads Development Project – Final Report 40 Annex 7 Poverty and Social Assessment of all Indonesia's 33 provinces. The Subcomponent 1 area of East Java has a relatively lower poverty rate of 17.5 but this still represents almost 1.9 million people and a quarter of all the poor in East Java.

4.1.3 Central Java

The province of Central Java is 32,548.20 km! in area and a population was 32 million, making it the third most-populous province in Indonesia after West Java and East Java. Similar to East and West Java, it has strong manufacturing and trade, hotel and restaurant sectors but is the most agriculturally based of the four provinces with about 20 percent of economic activity in agriculture.

Located in the middle of the island of Java, the Central Java province is bordered by the West Java and the East Java provinces. To the north and the south, the Central Java province faces the Java Sea and the Indian Ocean. Central Java also includes some offshore islands: Karimun Jawa Islands in the north, and Nusakambangan in the southwest. Although Central java fully encloses the region of Yogyakarta, this special region province, is a separate political entity.

Central Java has the highest poverty rate of the project provinces with 21.1 percent of its inhabitants below the poverty line, accounting for 6.8 million poor. The project area of Central Java is the poorest of all the project areas with an overall poverty rate of 23.9 percent and has 1.4 million poor.

4.1.4 Yogyakarta

The Special Region of Yogyakarta (Indonesian: Daerah Istimewa, or DI), had a population of 3,3 million. The province of Yogyakarta has a total area of 3,185.80 km! making it the second- smallest provinces in Indonesia, after the Jakarta Capital Region. It is surrounded by the province of Central Java and the Indian Ocean in the south. It is the only province in Indonesia that is still formally governed by a precolonial Sultanate. The city of Yogyakarta is the capital of the province.

Along with adjacent areas in Central Java, it has some of the highest population densities of Java. Services and the trade, hotel and restaurant sectors account for about 40 percent of GDP but agriculture is also important accounting for 15 percent of economic activity.

Although the province has a relatively high poverty rate of 19.1 percent, it accounts for only 649 thousand poor due to its small population. The project area of Jogyakarta has a relatively high poverty rate of 20.4 percent and with 486 thousand poor accounts for almost 78 percent of all the poor in the Yogyakarta.

4.2 Overview of Kalimantan

Kalimantan, the Indonesian portion of the island of Borneo, covers a huge area of some 5.4 million km! but has a small population of less than 12 million. Kalimantan and comprises four provinces; East, West, Central and South. It is one of Indonesia’s most sparsely populated regions, less sparse than only Papua. Although Kalimantan has several major commercial and industrial centers, such as Samarinda, Balikpapan and Banjarmasin, which are based on timber and the extractive industries, large tracts of the region’s interior remain remote and accessible only by river.

Kalimantan’s economic wealth is largely based on timber, mining and the oil and gas industry, with precious stones also important. The region’s economy has Indonesia’s second-smallest agricultural sector, contributing only 15.6 percent, with the largest contributions to regional GDP coming from the extractive industries (24.5 percent) and manufacturing (28.6 percent).

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Kalimantan has Indonesia’s two largest coal mines. This means that as a contributor to the regional economy, manufacturing in Kalimantan is almost as high as in Java. Kalimantan has Indonesia’s second-highest per capita revenue at Rp 1,471,000 (US$156), second only to Papua. In terms of government spending, with the exception of Papua, Kalimantan has the highest per capita spending on public health, education, housing, agriculture and mining. As a proportion of spending, Kalimantan devotes more than any other region to public works and transportation.

With only 5.4 percent of Indonesia’s total population, Kalimantan contains only 3.6 percent of the country’s poor and has a poverty headcount of 11.0 percent, significantly lower than the national average of 16.7 percent. Kalimantan has made considerable progress towards development and, unlike any other region, not one kabupaten has a poverty incidence of over 30 percent, even in the remote interior of northern East Kalimantan. Kalimantan's work for has 52.4 percent being concentrated in the agricultural sector. Of these agricultural workers, a large 90 percent work in the informal sector. Overall, more than 63 percent of the entire workforce is engaged in informal work. At 15.7 percent, Kalimantan is second only to the Java region in the proportion of the workforce employed in industry, with 31.8 percent involved in the service sector. Official unemployment is relatively low, at 5.2 percent.

4.2.1 West Kalimantan

West Kalimantan is one of four Indonesian provinces in Kalimantan. Its capital city Pontianak is located right on the Equator. The borders of West Kalimantan roughly trace the mountain ranges surrounding the watershed of the Kapuas River, which drains most of the province. West Kalimantan is subdivided into two urban cities and ten rural regencies.

The province has an area of 146,807 km!, a population of about 4.1 million people and a poverty rate of 13.9 percent. Subcomponent 1 districts have a total population of 1.6 million and with a poor population of 240 thousand and with an overall poverty rate of 8.6 percent is the least poor of all the project areas.

West Kalimantan Province has an abundance of natural resources including agriculture, forestry, fisheries, water, mining as well as tourism. Nevertheless, the agriculture sector remains the regional economic backbone employing 88 percent of the population. Palm fruit, rubber, sugar cane, cacao, and fishery are the main products but corn, coconut, pepper and cattle are also regional commodities.

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Table 22: GDP of Project Provinces in Kalimantan (Current Market Price 2006-Billion Rp) West East Economic Sector % Kalimantan Kalimantan Agriculture, livestock, forestry and 10,230 27.1 10,563 5.3 Fisheries Mining and quarrying 463 1.2 82,701 41.6 Manufacturing industry 6,989 18.5 71,806 36.2 Electricity, gas, and water supply 231 0.6 576 0.3 Construction 3,223 8.5 4,681 2.4 Trade, Hotel and Restaurant 8,558 22.7 12,867 6.5 Transport and Communication 2,530 6.7 6,953 3.5 Financial, Real estate and Business 1,938 5.1 3,467 1.7 Services Services 3,551 9.4 4,964 2.5 Gross Domestic Product 37,713 100 198,579 100.0 As a Percent of Indonesia Economy 1.1% 5.9% Source: Provincial Statistical Yearbooks, 2007

4.2.2 East Kalimantan

East Kalimantan is the second largest Indonesian province, located on the Kalimantan region on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with an oil refinery). Ever since Indonesia opened its mineral and natural resources for foreign investment in 1970s, East Kalimantan province has experienced major boost of timber, oilfield exploration, natural gas, as well as coal and gold mining and exotic forest products.

The total provincial population is 2.9 million with a poverty rate of 11.6 percent. The subcomponent 1 area has a population of only 432 thousand. Although the overall poverty rate for is 16.9 percent, three of the four districts have poverty rates of over 20 percent. The average is lower due to the higher population of Barau with its very low poverty rate of 8.4 percent. However, this district is not included in Subcomponent 2, raising the poverty rate for this area to 21.8 percent.

The main problem to developing economic growth is lack of transportation infrastructure. Transportation depends on traditional boats connecting coastal cities and areas along the main river, Mahakam River. Illegal logging is an extremely serious problem which destroyed much of the rainforest. Less than half the original rainforest still remains in places such as the Kayan Mentarang National Park in the northern part of the province. Other developing economic sectors include agriculture and tourism.

4.3 Poverty in the Project Areas

There is considerable variation in terms of population size and density across the project Provinces and significant disparities in terms the incidence of poverty.

Preparing the Regional Roads Development Project – Final Report 43 Annex 7 Poverty and Social Assessment

Table 23: Rural and Urban Poverty in Project Provinces Poverty Data 2004

Population Rural Project Poverty Poverty Line 2006 Number of Poor (000's) Share Provinces Rate Rp (000's) of Poor % (%) Total Urban Rural Urban Rural West Java 39,649 12.1 4,654 2,243 2,411 51.8 152,144 122,475 Central Java 32,179 21.1 6,844 2,347 4,497 65.7 140,391 116,998 DI Yogya 3,289 19.1 616 301 315 51.1 148,247 114,671 East Java 36,592 20.1 7,313 2,231 5,082 69.5 138,792 119,405 West Kalimantan 4,118 13.9 558 144 414 74.2 160,491 103,400 East Kalimantan 2,936 11.6 318 84 234 73.6 163,976 170,296 Project Area 118,763 17.6 20,303 7,350 12,953 63.8 150,674 124,541 Indonesia 222,192 16.7 36,147 11,369 24,778 68.5 143,455 108,725 Source: Provincial Statistical Yearbook

The project area covers 20 districts, 14 in Java and 6 in Kalimantan. The total population of the project area is 18 million with an average poverty rate of 19 percent.

About 64 percent of the total poor in the project provinces live in rural areas, somewhat below the national average of 68.5. East and West Kalimantan each have about 74 percent of their respective provincial poor living in rural areas, but due to their small overall populations this amounts to less than 650 thousand people.

Table 23 provides population and poverty data for the project by district and road link. Key points regarding projects areas are as follows:

• The roads pass through 20 districts with a total population of 18 million, representing 15 percent of the total population of Indonesia. The significantly lower population in Kalimantan accounts for only a small portion of this total, 1.4 million (8 percent), with the Java project area accounting for 16.6 million (92 percent).

• The overall poverty rate in the project area is 19.3 percent. In Kalimantan it is relatively low at 8.8 percent but in Java the project area the poverty rate is 19.7 percent, 3 percentage points above the national average.

• The total number of poor living in the project area is 3.3 million of which 3.2 million (94 percent) live in Java and 1 million (6 percent) in Kalimantan.

• Shockingly, 40 percent of the poor in the Java project area and 37 percent in the Kalimantan area are classified as food poor, meaning they do not have enough to eat.

The average poverty rate in the project area was 19.3 percent respectively, in 2007, as measured by BPS. The PRUS results showed lower poverty rates for the project area as compared to provincial statistics. Overall 17.3 percent of the survey respondents were poor, living below the poverty line. The lower percentage of poor captured in the survey is not unexpected as households living on or near the roads occupy relatively more urban, developed and thus more costly land, whereas the district poverty rates includes poorer, rural areas that are some distance from the road.

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Table 24: Project Area Poverty Estimates Poverty Survey

Rate Number Poor 17.3 68 Non poor 82.7 325 TOTAL SURVEY 100.0% 393 Women 16.3 49 Source: Project Road User Survey

4.3.1 Causes of Poverty

According to the Indonesia's Poverty Reduction Strategy Paper (PRSP) the causes of poverty are the lack of access to:

• quality and affordable food; • quality health services • quality education services; • jobs and business opportunities; • housing and sanitation services; • clean water; • natural resources, and a deteriorating environment ; as well as • an absence of land rights; (ix) violent conflict; and • a lack of participation.

These causes can be interpreted as a lack of access to various forms of human, physical, financial, natural, and social capital. Three other factors contribute to poverty: inadequate infrastructure, lagging agriculture, and vulnerability. Given the large proportion of Indonesians whose incomes are below the poverty line, small changes in income can have major welfare implications for vulnerable families.

Figures 6 and 7 display the poverty maps by district for Kalimantan and Java.

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Figure 6: Poverty Map of Kalimantan by District

Source: Making Of The New Indonesia Work For The Poor, World Bank, 2006

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Figure 7: Poverty Map of Java by District

Source: Making Of The New Indonesia Work For The Poor, World Bank, 2006

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Table 25: Project Population and Poverty by District and Road Link

No of No of Total Province Total Road Link km Food % Income % No of % /District Population Poor poor Poor West Java 83.6 4119.0 229.2 5.6 417.6 10.1 646.8 15.7 Pameungpeuk - Bts. 29.1 Garut/Tasikmalaya (Ci Garut 2375.7 144.7 6.1 220.2 9.3 364.9 15.4 Bts. Garut/Tasikmalaya (Cikaengan) 12.8 - Cip Tasikmalaya Cipatujah - Kalapa Genep 41.5 1743.3 84.6 4.9 197.3 11.3 281.9 16.2 Central Java 125.8 4521.1 418.6 9.3 698.8 15.5 1117.4 24.7 Adipala - Ayah - Link 4 Cilacap 28.0 1621.7 160.2 9.9 178.2 11.0 338.4 20.9 Ayah - Karangbolong 17.1 30.9 Kebumen Karangbolong - Putureja (Wawar 1203.2 98.2 8.2 273.6 22.7 371.8

Bridge) 42.8 Giri Woyo - Duwet 27.3 Wonogiri 978.8 102.0 10.4 136.9 14.0 238.9 24.4 Giriwoyo - Glonggong 6.6 DI Yogyakarta 161.6 2380.4 190.4 8.0 295.4 12.4 485.8 20.4 Kulonprogo Galur - Congot 23.9 374.1 28.7 7.7 65.4 17.5 94.1 25.1 Srandakan - Kretek 17.4 Bantul 879.8 76.9 8.7 86.3 9.8 163.2 Srandakan - Kretek - Alt 042 9.6 18.6 Parangtritis - Batas Kab. Gn. Kidul 0.7

Girijati - Spg 020 1 13.7 Girijati - Baron 30.0 Yogyakarta Yogyakarta - Parang Tritis 24.8 443.1 18.6 4.2 37.3 8.4 55.9 12.6 City Baron - Tepus 14.6 Gunungkuidu Tepus - Jepitu - Jeruk Wudel 18.2 683.4 66.2 9.7 106.4 15.6 172.6 25.3 l Jeruk Wudel - Baran (Rongkop) 9.5

East Java 553.3 5,543.8 454.9 8.2 563.4 10.2 1,018.3 18.4 Pacitan - Glonggong 40.8 Pacitan 538.6 51.3 9.5 82. 15.3 133.5 24.8 Pacitan - Spg 160 1 31.0 Jarakan - Bts Trenggalek 60.6 Bts. Trenggalek - Pacitan 55.4 Panggul - Prigi 56.0 Prigi - Nglarap Bridge (Bts Trenggalek) 10.8 Nglarap Bridge - Temporary Connector Road 10.9 Temporary Connector - Paritraya Brdg - Popoh Road 5.2 Tmp Connector - Collapsed Culvert 5.1 Trenggalek 670.2 40.8 6.1 120.9 18.0 161.7 24.1 Collapsed Culvert - Bts Blitar - New Alignment 20.0 Bts Blitar - Sta 4.3 - New Alignment 4.3 Sta 4.3 Blitar - Sta 15.1 10.8 Sta15.1 - Sta 46.75 - New Alignment 31.4 Sta 46.75 - Sta 55.45 8.9 Sta 55.45 - 57.8 - New Alignment 2.4 Sta 57.8 - Sta 62.5 Bts Malang 4.7 Tmp Connector - Collapsed Culvert 5.1 Bts Malang - Sendangbiru 57.3 Tulungagung Sendangbiru - Bts Malang (Sta 60) 2.7 984,460 88.5 9.0 73.1 7.4 161.6 16.4 Talok - Druju - Sendangbiru 41.5 Malang Turen - Bts. Kab. Lumajang 36.7 2,350,123 200.9 8.6 181.2 7.7 382.1 16.3 Bts. Kab. Malang - Lumajang 56.9 Lumajang 1000.4 73.3 7.3 106.0 10.6 179.3 17.9

West Kalimantan 307.3 1,173.5 56.6 4.8 87.0 7.4 143.6 12.2 Singkawang Singkawang - Tebas 43.6 163.8 5.2 3.2 11.1 6.8 16.3 9.9 City Sambas Tebas - Sambas 32.2 475.6 28.7 6.0 39.8 8.4 68.5 14.4 Sambas-Tanah Hitam 16.6

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Tj Harapan - Sp3 Bantaran 7.6 Sp3 Bantaran - Sp3 Galing 12.5 Sp3 Galing - Sp3 Tanjung 41.4 Sp3 Tanjung - Sp3 Aruk 11.3 Sp3 Aruk - Bts Serawak 0.4 Sosok - Tayan 46.1 Tanjung - Kembayan 36.2 Kembayan - Balai Karangan 37.2 Sanggau 534.1 22.7 4.3 36.2 6.8 58.9 11.0

Balai Karangan - Entikong 19.3 Entikong - Bts. Serawak 2.4 East Kalimantan 209.0 253.0 17.5 6.7 38.1 15.0 55.0 21.8 Tanjung Selor - Tanjung Palas 12.9 Bulungan Tanjung Palas - Sekatak 87.6 96.8 6.9 7.1 14.2 14.7 21.1 21.8 Sekatak - Malinau 98.6 Jl Raja Pandita (Malinau) 5.2 Jl Lapangan Terbang (Malinau) 2.2 Malinau 48.6 2.9 6.0 8.3 17.1 11.2 23.1 Jl Raja Alam (Malinau) 1.1 Malinau - Mensalong 28.4 Mensalong - Sebuku 102.0 Nunukan Sebuku - Sei Manggaris 30.8 107.6 7.2 6.7 15.5 14.4 22.8 21.2 Sei Manggaris - Serudong 20.5 Total Project 1,440.6 17,991 1366.7 7.6 2100.2 11.7 3467.0 19.3 Source: Project Documents, Provincial Statistical Yearbooks and SENSENUS

4.4 Household Characteristics

Java's poverty profile indicates 6.3 out of every 10 poor households are found in rural areas, only slightly less than the national average. However, only 42 percent of poor households have more than five family members, less than the 48 percent national average for the poor.

Kalimantan’s poor continue to live primarily in rural areas, where 7.5 out of 10 poor households are found. This is higher than the national average of 6.9 out of 10 poor households. Another sign of poverty is that over 60 percent of poor households have more than five family members, the highest level of the six regions.

Java has the highest number of households with electricity, at over 97 percent; Kalimantan comes a distant second, with 80 percent. In addition, the Java region has the highest levels of access to clean water, at 78 percent, and good sanitation. However, while 96 percent of poor households have electricity, almost half of all poor households have no access to safe water, and more than 7 out of 10 have no decent sanitation. Despite Kalimantan's lower poverty rate, overall non-monetary indicators of poverty show that only 46 percent have access to clean water, well behind all other regions, and only 30 percent have access to sanitation.

Indonesia is barely on track to reach the MDG drinking water target of 86 percent by 2015. In addition, it has made insufficient progress towards meeting the MDG sanitation target of 73 percent and is likely to miss that target by about 11 percentage points based on the current trend. Interventions and more resources are needed, particularly in urban slums and in remote and rural areas. Table 26 shows access levels by province to clean water and sanitation in provinces is still low.

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Table 26: Percentage of Households by Source of Drinking Water, 2006 Bore Buy Rain Province Pipe Pump Water Well Spring Rivers Water Others West Java 12.8 24.2 4.4 42.3 15.6 0.5 0.0 0.2 Central Java 16.8 10.8 1.8 53.0 17.0 0.7 0.3 0.2 DI Yogyakarta 14.2 6.4 8.8 58.1 7.3 0.1 4.7 0.5 East Java 17.8 15.2 5.3 48.8 13.1 0.6 0.6 0.7 West Kalimantan 9.3 1.1 2.4 17.9 7.2 23.3 28.4 0.1 East Kalimantan 48.3 3.1 3.7 21.5 3.8 12.4 6.9 0.4 INDONESIA 18.4 13.6 4.4 44.8 12.8 3.0 2.5 0.4 Source: Statistic Yearbook, 2007, BPS

In Kalimantan, poor households experience higher levels of poverty than average poor households across the country. For instance, 6.9 out of 10 poor households have no access to safe water, compared with the national poor households’ average of 5.2 percent. Three-quarters of poor households in Kalimantan have inadequate sanitation, slightly higher than the national average. While 2.1 out of 10 poor households across Indonesia have no electricity, in Kalimantan 3.3 out of 10 poor households are without electricity. Sewerage coverage (estimated at 1.3 percent) is among the lowest is Asia.

Table 27: Household Characteristics (%) Living in Semi-Permanent or Percentage of Households Percentage of Households Non-Permanent Dwelling without Toilet with Earth Floor Province Total Rural Urban Total Rural Urban Total Rural Urban

West Java 25.3 40.1 11.0 39.5 52.5 26.9 8.9 11.7 6.2 Central Java 34.4 45.7 18.0 40.6 46 32.8 31.3 42.3 15.4 DI Yoyakarta 17.5 32.9 7.0 32.4 19.7 41.1 13.3 24.6 5.7 East Java 24.9 33.6 12.6 41.8 49.2 31.2 23.9 33.3 10.7 West Kalimantan 75.9 81.2 61.2 39.2 48.3 13.9 3.0 3.3 2.2 East Kalimantan 73.5 89.8 59.9 25.0 32.3 18.9 4.4 5.2 3.8

INDONESIA 37.8 51.4 19.8 39.6 48.3 28 16.4 22.6 8.1

Source: Statistic Yearbook, 2007, BPS

The PRUS showed that about 73 of people along the project roads live in permanent dwellings. However, only about 49 percent of poor respondents lived in semi-permanent dwellings, but few poor (1.6 percent) lived in simple thatched dwellings.

Although all households had access to electricity, few households had access to tap (5.3 percent) and most households relied on well what (87.9 percent). Only 6.8 percent of households used river water as their main source of water.

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Table 28: Household Characteristics Permanent Semi Groups Simple House Electricity Tap water Well River water Dwelling Permanent Dwelling Poor 49.2 49.2 1.6 100.0 9.1 83.3 7.6 Non-Poor 77.7 22.3 0.0 100.0 4.5 88.8 6.6 Total Survey 73.3 26.5 0.3 100.0 5.3 87.9 6.8 Women 59.2 40.8 0.0 100.0 2.3 88.6 9.1 Source: Project Road User Survey

About 72 percent of poor respondents as compared to 95 percent of non-poor have lived in their current residence for more than five years. This reflects the fact that poorer people move more often in search of work or are due to crisis, such as debt and the need to sell land. Although, overall only 15.7 percent of housing is less then 36 sqm, over 44 percent of poor people live in housing less than 36 sqm.

Table 29: Length of Residency and Size of Residence As a % of Respective Group Groups Length of Residency Size of Residence < 5 years > 5 years <36 M2 >36 M2 Poor 27.1 72.9 44.3 55.7 Non-Poor 4.9 95.1 10.4 89.6 Total Survey 8.4 89.3 15.7 83.5 Women 2.3 97.7 20.4 79.6 Source: Project Road User Survey

4.4.1 Location of Households

Often poor households are disadvantages in terms of proximity and access to roads and tend to live further away because property close to the road is relatively more expensive. Overall, 66.7 percent of respondents lived directly on the road and the remainder, 33.3 percent, lived off the road but in catchment area. As a percentage of the total survey, 57.3 percent of respondents living directly along the road were non-poor and 9.4 were poor. However, as a percentage of poor respondents, 60.7 percent of the poor surveyed lived on the project road as compared to about 67.8 percent of non-poor respondents. This relatively even distribution within poor and non-poor expenditure groups indicates that poor households are not significantly disadvantaged in terms of their proximity to the road. Similarly, women accounted for only 12.5 percent of respondents but 73.5 percent of these women live directly on the project road. Hence, it would appear that women are not disadvantaged from using the roads in terms of their proximity.

Table 30: Location of Household As % of Total Survey As % of Expenditure Group Within 5km of Within 5km of % of Total On the project On the project Group the project the project Survey road road road road Poor 15.5 9.4 6.1 60.7 39.3 Non-Poor 84.5 57.3 27.2 67.8 32.2 Total Survey 100.0 66.7 33.3 66.7 33.3 Women 12.5 9.2 3.3 73.5 26.5 Source: Project Road User Survey

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4.5 Land Ownership and Landlessness

Table 31: Land Ownership in the Project Area Do You Own Land Do you Have a Land Title Expenditure Non- Non- Residential Agricultural Residential Agricultural Group Agriculture Agriculture As % of Total Survey Poor 15.5 0.3 7.6 4.1 0.3 0.3 Non-Poor 84.5 6.1 67.4 16.3 0.3 1.8 Total Survey 100.0 6.4 75.1 20.4 0.5 2.0 Women 12.5 0.5 5.9 5.9 0.0 0.3 As % of Expenditure Group Poor 100 1.6 49.2 26.2 1.6 1.6 Non-Poor 100 7.2 79.8 19.3 0.3 2.1 Total Survey 100 6.4 75.1 20.4 0.5 2.0 Women 100 4.1 46.9 46.9 0.0 2.0 Source: Project Road User Survey

The PRUS found that 100 percent of households claimed to own their residential land but when asked if they had a land title this proportion dropped to only 20.4 percent, with the majority claiming traditional land use rights. Only 6.4 percent stated that they owned non-agricultural land but less than one percent had land title. In total, 75.1 percent owned agricultural land but only 2 percent had title to the land. Thus, it appears that the vast majority of land is owned through traditional land use right rather than official title, and this is true for both poor and non-poor households.

As a percentage of the respective expenditure groups, a significantly lower proportion of poor households, 49.2 per cent, owned agricultural land, compared to 79.8 per cent of non-poor households. This means that a much smaller proportion of poor households have access to productive land as a source of income. Overall, the survey found that 76.5 per cent of all agricultural plots were less than 2,500 sqm and only 8.2 percent of poor households as compared to 19.6 percent of non-poor households owned agricultural plots larger than 2,500 sqm.

The landless and near-landless population in Indonesia is significant and increasing. Many landless families have sold their land because of production failure and sudden economic shocks, such as sickness or natural calamities. Land is sold in order to access capital, often to settle debts. Selling land is therefore often a consequence of poverty, rather than the root cause. For poor households, the risk of insolvency is very high.

With out land as the source for income, poor households have to turn to other jobs to earn their living. Landless households normally work as hired employees for other farming households or work as hired employees in non-farming business. Hence, the sale of land can lead to greater vulnerability as the landless poor become dependent on low and unstable income from laboring. Landless families have consistently higher rates of poverty than other groups in the Indonesia.

Policies and programs to promote agriculture must take into account that most agricultural households are laborers and net food consumers. In 1993, 31 percent of all agricultural households were landless, 33 percent had holdings of less than 0.5 hectare and the remaining 33 percent had

Preparing the Regional Roads Development Project – Final Report 52 Annex 7 Poverty and Social Assessment holdings greater than 0.5 hectares. By 2003, the rate of landlessness on Java was over 40 percent.25

4.6 Employment and Income Sources

The agriculture sector absorbs about 70 percent of the poor in Indonesia. Investment in agriculture has lagged behind other sectors. Increasing labor productivity of workers in the agriculture sector and reducing risk is key to reducing poverty.

Figure 8: Where the Poor Work In Java Those from poor households in Java work primarily in agriculture (56 percent), with far fewer working in the next most important sectors of trading and industry, at 14 percent and 11 percent, respectively. Despite the region’s relative prosperity, the poor remain closely tied to the land and rural life. Indicating a high level of vulnerability, 7.2 out of 10 workers from poor households work in the informal sector. Among workers from poor families, unemployment in Java is the highest of the six regions, at 12 percent.

In Kalimantan, 71 percent of the poor work in Source: Making the New Indonesia Work for the Poor, WB, 2006 agriculture, followed by 8 percent in trading Figure 9: Where the Poor Work In Kalimantan and 6 percent in industry. Of all those from poor households who do work, three-quarters are engaged in the informal sector with little job security.

Promoting productivity and expansion of the manufacturing to create jobs and reduce poverty has been a major development focus however the demographic composition of the current labor force and low educational level dictates a slow transition from a primarily agricultural workforce to one based on manufacturing and service. Source: Making the New Indonesia Work for the Poor, WB, 2006

25 From Poverty to Prosperity: A Country Poverty Analysis for Indonesia, ADB, 2006

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Table 32: Employment Distribution for Selected Districts and Provinces Mining Province/ Agricul- Manu- Construc- Commu- and Utilities Trade Financing Service Others District ture facture tion nication Quarry Cilacap 37.5 0.5 17.2 0.3 7.4 19.4 4.8 0.3 12.5 0.2 Banyumas 22.9 0.6 19.5 0.2 8.0 25.3 5.3 1.5 16.5 0.1 Kebumen 36.0 1.3 23.4 0.3 6.8 17.3 3.4 0.9 10.6 0.1 Purworejo 41.2 2.6 17.6 0.3 4.2 17.6 4.0 0.7 11.7 0.1 Wonogiri 60.6 0.1 6.2 0.1 4.5 16.8 2.6 0.4 6.5 2.2 Central Java 36.6 0.8 17.9 0.2 7.0 20.5 4.2 1.0 11.6 0.1 Sukabumi 37.7 1.3 9.8 0.2 6.8 20.7 10.5 0.8 11.7 0.3 Cianjur 57.5 0.5 4.5 0.2 5.1 17.5 7.3 1.1 6.3 0.0 Garut 40.4 0.6 9.8 0.1 4.3 24.4 6.9 0.5 12.4 0.7 Tasikmalaya 47.4 0.6 15.5 0.0 3.0 19.7 5.4 0.5 7.7 0.1 Ciamis 37.8 0.3 16.0 0.0 5.6 24.5 5.4 0.9 9.3 0.2 Bandung 24.1 0.6 26.1 0.4 7.3 21.1 8.7 0.9 10.8 0.0 West Java 26.4 0.7 17.4 0.3 5.6 25.6 8.4 1.9 13.6 0.2 West Kalimantan 88.6 2.2 4.9 0.4 3.8 Source: Provincial Statistical Yearbooks

Table 32 shows that manufacturing and trade comprise sizable proportions of the labor force in most of the project districts in Central and West Java. This table also illustrates the vast regional variation between Java and Kalimantan, the latter with almost 89 percent of the labor force employed in agriculture.

Table 33: Minimum and Average Wages by Project Provinces 2006 Minimum Wage per Month Average Monthly Province (Rp) Wage/Salaries/Income (Rp) West Java 447,654 746,554 Central Java 450,000 585,543 Di Yogyakarta 460,000 727,639 East Java 390,000 597,208 West Kalimantan 512,000 816,454 East Kalimantan 701,640 1,476,724 Indonesia 602,702 759,999 Source: Provincial Statistical Yearbooks

4.7 Income Earners and Sources of Income

Employment is one of the principle pathways out of poverty but employment alone is not sufficient. The poor and the non-poor are equally likely to be found in the labor force, and the labor force participation rate of the poor and non-poor differs very little. What determines whether a person is poor is the number of earning persons in the household, the number of dependents supported, and the return to employment.

Table 34: Number of Income Earners Per Household As a % of Respective Group No. of Income Earners 1 2 3 4 Poor 85.2 9.8 3.3 1.6 Non-Poor 70.5 27.4 1.5 0.6

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Total Survey 72.8 24.7 1.8 0.8 Women 42.9 49.0 0.0 8.2 Source: Project Road User Survey

The project survey showed that 85.2 percent of poor households had only one income earner as compared to 70.5 percent of non-poor households. Only 9.8 percent of poor households as compared to 27.4 percent of non-poor households had to income earners, with a very low percentage of either group having more than two income earners.

Table 35: Sources Of Income in the Project Area Primary Source of Income As a % of Total Survey Wage Farm Wage Farm Home Rem- Of Non Livestock Fishing Trading Other Group Labor Owner Industry mitances Farm Poor 22.7 13.6 36.4 0.0 9.1 7.6 1.5 0.0 9.1 Non-Poor 21.7 2.8 46.3 1.3 2.8 17.1 3.5 0.3 4.3 Total Survey 21.8 4.3 44.9 1.1 3.7 15.8 3.2 0.2 5.0 Women 26.7 10.0 25.0 0.0 6.7 13.3 13.3 0.0 5.0 Secondary Source of Income As a % of Respective Group Wage Farm Wage Farm Home Rem- Group Of Non Livestock Fishing Trading Other Labor Owner Industry mitances Farm Poor 40.0 40.0 12.0 4.0 0.0 4.0 0.0 0.0 0.0 Non-Poor 38.3 10.0 40.0 9.2 0.0 1.7 0.8 0.0 0.0 Total Survey 38.6 15.2 35.2 8.3 0.0 2.1 0.7 0.0 0.0 Women 0.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Source: Project Road User Survey

The project road user survey revealed that most households, poor and non-poor, had more than one household income source. Hence, Table 35 should be interpreted in the context that many households that own a farm may also work as wage laborers.

Overall about 46 percent of respondents said that their primary source of income arose from ownership of some kind of agricultural endeavor, be that a rice farm, vegetable plot, livestock or aquaculture. There was no significant difference between the proportion of poor and non-poor for this response, although a larger proportion of the poor fish for a living as compared to non-poor and a greater proportion of non-poor raise livestock.

However, a greater proportion of poor (13.6 percent) as compared to non-poor (2.8 percent) said farm wage labor was a primary source of income and this distinction becomes more significant when considering secondary income sources where 40 percent of the poor as compared to 10 percent of non-poor claim farm wage labor as the most important secondary source of income. Overall, the poor in the project area mainly work in agriculture, with 87.5 percent of poor households claiming this (own production or wages) as a key income source.

Non-farm wage labor accounted for 21.8 percent of primary income sources and 38.6 percent of secondary income, with no significant difference between the proportion of poor and non-poor engaged in these activities. However, although 22.7 percent of poor households earn non-farm wages as primary income and 40 percent as secondary income, there are limited off farm employment opportunities available and most of the employment is unskilled.

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Not surprisingly, a much smaller percentage of poor (7.6 percent) as compared to non-poor (17.1 percent) are primarily involved in trading but the reverse is true when considering secondary income where a greater proportion of poor households (4.0 percent) as compared to non-poor households (1.7 percent) are engaged in trading.

4.7.1 Households Selling Goods

As with income sources, most households that sell goods, sell more than one type For example, vegetable farming may be the main good sold but most households also sold tree crops and many had rice farms. Again, this holds true for both poor and non-poor households.

Table 36: Households Selling Goods By Expenditure Group As a % of Respective Group Group Rice Vegetables Tree Crops Livestock Fish Small Craft Poor 11.5 42.6 24.6 6.6 9.8 4.9 Non-Poor 31.9 59.0 47.0 7.2 3.9 8.4 Total Survey 28.8 56.5 43.5 7.1 4.8 7.9 Women 36.7 28.6 0.0 0.0 6.1 22.4 Source: Project Road User Survey

Almost all people sell their products locally. Overall, 88.4 percent of the total survey said that they sell their goods at the local market, with 100 percent of the poor and the 86.6 percent of the non- poor selling locally. The capacity to sell locally reflects both the high population density and the accessibility of local markets in the project area but may reflect relatively small quantities individual households are selling. As 37.1 percent of the total survey stated that transport costs were the reason for not selling goods at more distant markets, it could mean that if transport costs were lower households would produce a greater quantity of goods for wider distribution.

Table 37: Where Households Sell Goods By Expenditure Group Middle Can Sell All Transport Village Market < 5 Market >5 Dealers Group At Fair Cost Are Market Km Km Offer Too Price Too High Low Price Poor 100 0 0 60.0 40.0 0.0 Non-Poor 86.6 8.7 4.7 53.7 44.7 1.6 Total Survey 88.4 7.5 4.1 45.9 37.1 1.2 Women 100.0 0.0 0.0 66.7 33.3 0.0 Source: Project Road User Survey

4.7.2 Unemployment in Project Provinces

For Indonesia, the open unemployment rate rose from 9.1 percent in 2002 to 10.3 percent in 2006, and fell back to 9.1 percent in 2007. Non-participation rates have also risen, and youth unemployment remains high, while median wages have remained the same since the crisis. In agriculture, productivity levels remain low and growth is stagnating. Only about 30 percent of Indonesia’s growing labor force appears to have made the transition to what might be considered high-value-added activities.26

26 Indonesia Economic And Social Update, World Bank, 2008

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The unemployment rate of young men has risen to above 25 percent and those of young women to above 30 percent. Moreover, close to 60 percent of the youth work in the informal economy. Most jobs in the informal economy are in low productivity activities where earnings are low and unstable. In contrast, the formal sector can provide young workers with better quality jobs and higher wages and better working conditions.27

Table 38: Open Unemployment Rate by Province 2003 - 2006 (%) Province 2004 2005 2006 West Java 12.49 13.69 14.50 Central Java 7.02 7.72 8.20 Di Yogyakarta 5.62 6.26 6.25 East Java 8.79 7.69 7.72 West Kalimantan 6.53 7.90 7.06 East Kalimantan 9.69 10.39 12.11 Indonesia 9.67 9.86 10.45 Source: Provincial Statistical Yearbooks

4.8 Transport Infrastructure and Access to Markets

Indonesia is a middle-income country, with varied development across its provinces and islands. Access to roads is key to the country’s poverty reduction strategy, as improved transport accessibility reduces poverty both directly and indirectly e.g. through better access to education and health facilities.

Access of the poor to markets in Java is important and despite the region’s infrastructure, over 8 percent of poor households still live in villages without asphalt road and 78 percent have no access to telecommunications. Moreover, access of the poor to credit is low, with over 75 percent of the poor have no bank or credit facilities in their village and access to education is limited because secondary schools are not available in the villages of poor households in 49 percent of cases.

In terms of difficulties experienced by the poor in gaining access to markets, almost three times as many poor households in Kalimantan live in villages without an all-weather road as compared with average poor households in Indonesia, highlighting the difficulties of transportation in the more remote areas of the region. Over 81 percent of the poor have no bank or credit facilities in their village, while a similar proportion have no access to telecommunications.

Table 39: Length of Road By Type of Surface 2002 - 2005 % of Non % of % of Year Asphalted Other Total total asphalted total total 2002 211,998 58 131,081 36 25,283 7 368,362 2005 216,714 57 149,054 39 12,131 3 377,929 Source: Statistical Yearbook, BPS, 2007

Improving the quality of Indonesia’s infrastructure is an essential aspect of strengthening Indonesia’s competitiveness. Challenges confronting the transport sector range from weaknesses in capacity, unavailability of long-term financing, to regulatory issues. Both national and provincial road networks suffer from road congestion, a problem which is expected to pose significant

27 Creating Jobs - Indonesia: Ideas for the Future, The World Bank, 2005

Preparing the Regional Roads Development Project – Final Report 57 Annex 7 Poverty and Social Assessment challenges. Road safety is poor due to a rapid increase in vehicle ownership, both two- and four- wheel, on an inadequate road network, which leads to a drastic education and testing, poor vehicle safety standards, low awareness of accident risks, and limited use of road safety measures in accident-prone locations. Vehicle overloading and poor road maintenance add to road safety issues.

Table 40: Number of Registered Motor Vehicles Province Passenger cars Buses Trucks Motorcycles Total West Java 438,310 117,177 319,494 1,415,801 2,290,782 Central Java 205,404 37,751 330,628 5,069,421 5,643,203 DI Yogya 104,584 14,505 50,059 949,715 1,118,863 West Kalimantan 82,704 6,253 44,370 536,309 670,636 East Kalimantan 89,489 21,770 114,256 642,953 868,467 Indonesia 5,494,034 1,164,918 2,920,828 28,556,498 38,156,278 Source: Bureau of Public Statistics

There continue to be considerable operational and financial problems to overcome and the Indonesian transport sector is impacted by considerable governance challenges. Poor interdepartmental coordination and overlapping or ambiguous responsibilities contribute to ineffective implementation of sector-level programs. The Government recognizes the importance of essential infrastructure to promote private sector activity, both through public sector investments and public-private partnerships (PPP), and set up a National Committee on Policy for Accelerating Infrastructure Provision (KKPPI) in 2005. While KKPPI has been successful in preventing non- compliant projects from materializing, it has yet to make a significant breakthrough in developing transparent and competitive PPP projects.

Table 41: Length of Roads by Government Responsibility 2005 National Provincial District Total 27,616 48,905 291,841 368,362 34,629 40,125 303,175 377,929 Source: Bureau of Public Statistics

Weak planning of the transport sector and its various inadequacies also result in the limited attention given to environmental and social issues, especially gender, health, and human trafficking. Adequate laws and regulations are needed to address these issues as particularly in the remote areas. Improving the environment/mitigating impacts and poverty targeting appear are very limited concerns of DGH and MOT although there are important environmental guidelines and legislation as well as affordability being an important objective.

For medium-term developmental goals, the GoI has committed to raising levels of sustainable economic growth, creating jobs, and accelerating achievement of its millennium development goals. It identifies infrastructure development and investment, including that related to road transport, as critical to meeting these objectives. Improved access to markets strengthened intermodal integration and trade opportunities will result from the GoI’s emphasis on road transport. The GoI through MPW has given high priority to improving the road system through:

• Removal of capacity constraints; • Rehabilitation of substandard highways;

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• Development of a sustainable maintenance system to preserve the country’s road system, including increase expenditure; • Investment in less developed area road networks, and • Improved border area connections.

ADB’s objective for the transport sector is to improve Indonesia’s transport network by increasing the quantity and quality of infrastructure and operations. This project directly addresses the inadequate investment in the transport sector by increasing the capacity of selected roads that play important roles in domestic and regional trade.

4.9 Education

Indonesia is on track to meet educational MDGs. The Government has been investing additional resources in public service provision to address capacity weaknesses and the resulting poor development outcomes there has been good progress on primary and secondary enrollment rates.

Table 42: MDG 2. Achieving Universal Basic Education Target 3. Ensure That By 2015, Boys And Girls Alike Will Be Able To Complete A Full Course Of Primary Schooling Indicator 1990 Present Target Remark Status Likely to 6 Net enrolment rate in primary education (SD) 88.7% 94.7% 100% Increasing achieve Net enrolment rate in junior high education Increasing Likely to 6a 41.9% 66.5% 100% level (SMP) slowly achieve Proportion of pupils starting grade 1 who reach Increasing Likely to 7a 75.6% 81.0% 100% grade 5 slowly achieve Proportion of pupils starting grade one who Increasing Likely to 7b 62.0% 75.0% 100% complete primary school slowly achieve Literacy rate of the population aged 15 -24 Likely to 8 96.6% 99.4% 100% Increasing years achieve Source: Let's Speak Out For MDG, MDG Working Groups and UN, 200

After Sumatra, the Java region has Indonesia’s second-highest school enrollment at all levels of the primary and secondary education system. In terms of education, Kalimantan is on a par with Java for primary school enrollments, at 93.4 percent, but as children move up through the school system so enrollments fall off, with 60.3 percent enrolling in junior high school and only 38.2 percent in senior high school. As such, Kalimantan lies in the middle of the six regions in terms of school enrollments.

In Java, similar to the national average, 5.4 out of 10 poor households have less than primary school education while 1.6 out of 10 of the poor is illiterate. While the level of literacy in Java is on a par with the national average, this lags far behind Sumatra, Indonesia’s best performing region. Kalimantan is slightly below the national average for the poor, 5.5 out of 10 people from poor households have received less than primary school education, while illiteracy is close to the average for the poor, at 1.6 out of 10.

Transport projects can improve access to schools. This is especially important in remote and isolated areas. Transport projects can also strengthen schools by supporting the mobility of teachers, teaching supplies, and school inspectors. Better transport connections help school systems maintain teachers in remote locations where they were previously reluctant to work. Access to social services beyond the village tends to improve as well because transportation can make distant services accessible year-round. Attendance at middle and high schools outside the village also increases.

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Table 43: Percentage Of Village With Schools In Project Area Percentage Of Village With School Grade By District District Primary School Junior H School Senior H School West Java Province Garut 98.5 21.3 3.7 Tasikmalaya 99.4 24.6 2.7 Central Java Province Cilacap 100 20.1 2.8 Kebumen 98.5 10.7 2.0 Purworejo 86.8 7.9 1.5 Wonogiri 99.0 12.2 1.9 Yogyakarta Province Kulonprogo 98.9 37.9 9.2 Bantul 98.6 62.2 20.3 Gunungkidul 100 27.1 4.5 East Java Province Pacitan 100 24.5 2.8 Trenggalek 98.7 26.9 4.5 Tulungagung 98.1 18.9 23.4 Blitar 98.8 19.0 2.8 Malang 98.5 16.5 1.8 Lumajang 99.5 19.7 3.7 West Kalimantan Province Sambas 98.9 23.5 4.2 Pontianak 98.8 27.4 5.2 Sanggau 100 19.4 2.1 Kota Singkawang 96 36.0 8.0 East Kalimantan Bulungan 79.1 24.4 2.9 Malinau 42.4 6.5 4.5 Nunukan 74.2 16.5 0.5 Source: Census Data 2006

While enrolment rates have improved and the gender gap is closing at primary level, striking inequalities remain at the junior secondary and senior secondary levels’. School attendance, particularly of poor children, especially girls, in secondary education, is highly dependent on affordable transport services. Disparities between rich and poor, rural and urban are significant. There is a significant group of young people in Indonesia who are effectively disenfranchised for lack of access to school, illiteracy and having to work. Indigenous/minority populations tend to fall into this group due to their isolation and vulnerability. Out of approximately 38 million children aged 7-15, 3.3 million do not attend school. An estimated 1.5 million children (between the ages of 10 to 14) are at work, and 10 percent are illiterate at age 15.

The project road user survey confirmed that many children under the age of fifteen are not in school. On average the PRUS found that 25 percent of children under this age of fifteen were not in school but that rose to 49.4 percent for children from poor families.

Table 44: Children Not in School Number of Children % Children (under age 15) not in School in the Household (under age 15) Poor 1.3 49.4 Non-Poor 1.4 20.8 Total Survey 1.4 25.0 Women 0.8 57.9 Source: Project Road User Survey

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The PRUS showed that women believed that improved access to schools would be the most important overall benefit arising from project road improvement with 38.1 of all women selecting this response. Women also believed that improvements in transport services, such as more bus services, were clearly the most important economic benefit with 36.5 percent. See Section XX of this report for the review of community perspectives on the project.

For the poor, lack of education does not necessarily cause their poverty but poverty limits their opportunity for formal education. Economic factors contribute to drop out rates. Children often fail to attend or drop out of school due to family financial difficulties and parents find it difficult to pay school fees and other school expenses. In addition, the limited experience parents themselves have with the educational system also contributes.

Furthermore, the cost of sending a child to school is often outweighed by the value of the labor the child can provide at home. Families often see limited benefits of further education and are not always eager to support their children attending school. This is particularly true for the agricultural households where going to school does not directly help their children’s future jobs. In most of the project area, primary and secondary schools are relatively close by but most children have to travel out side their villages to attend high school (grades 10 to 12). Hence, the project road may increase high school attendance in this area, particularly if transport services also improved. In Kalimantan and parts of East Java, the improved roads may also attract teachers that would other wise not wish to work in these areas.

4.10 Health

Indonesia has made major improvements over the past three decades in its health system, but is struggling to achieve important health outcomes, especially among the poor. The public health network is extensive and well distributed across the country but it is underfunded and the quality is often poor. Despite substantial increases in public health spending in recent years, overall health spending in Indonesia remains low and continues to be inequitably distributed between and within provinces. Although improvements have been made in increasing access to health services, the performance of the current health system is inadequate. The national average life expectancy is 69 years. At a regional Table 45: Estimated Life level, Java measures up comparatively well with the longest life Expectancy by Project Province expectancy of 70 years, while at 25 deaths per 1,000 live births it Province 2007 also has the lowest infant mortality rate and at almost 40 percent. West Java 68.62 Central Java 68.62 Figure 10 displays the serious disparities demonstrated by large DI Yogyakarta 74.56 variations in the infant mortality rate (IMR) between provinces in the East Java 69.32 project areas. Jogyakarta has the second lowest infant and child West Kalimantan 68.86 mortality rates in Indonesia but those in East Java and West Java East Kalimantan 70.84 Source: Provincial Statistical are significantly higher. Despite the lower poverty rates in Yearbooks, 2007 Kalimantan generally, the region experiences poorer health outcomes, particularly in remote areas.

Figure 10: Infant and Child Mortality Rates 2003

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Source: Investing in Indonesia's Health: Challenges and Opportunities, World Bank 2008

In addition, significant disparities across socio-economic groups exist, with under-five mortality rates as high as 77 per 1,000 live births among the poorest households compared with about 22 per 1,000 among the wealthiest households. Access to services also varies by wealth and region. The project social/road user survey will capture data on distances to and mode of transport used to access health services to assess the potential impact from the proposed improved roads.

In the project areas, child malnutrition is highest at 32.5 percent in Kalimantan and, although Java has the lowest level of child malnutrition, at 23 percent, malnourishment among children from poor households in Java remains high, at 2.5 out of 10. In Kalimantan, child malnourishment is also rather prevalent among poor households, with 3.4 out of 10 children under five malnourished, compared with 2.8 out of 10 for poor children nationally. Not only underweight malnutrition but also micronutrient deficiencies remain a problem in Indonesia: about 19 percent of women in the reproductive ages and 53 percent of children between one and four years of age suffer from anemia.

In the project area, the percentage of women who give birth without a doctor or trained midwife is higher than the average for Indonesia, particularly in West Kalimantan. Overall, Indonesia's indicator 'delivery by skilled birth attendant’ remains at a very low level compared with China, Vietnam and Malaysia. These differences in outcomes even hold when per capita GDP is taken into account.

Table 46: Percentage of Births by Skilled Birth Attendant - 2006 Other Province Doctor Midwife Traditional Family Others Paramedic West Java 7.96 49.73 0.31 40.36 1.51 0.13 Central Java 9.75 62.26 0.28 26.84 0.85 0.01 East Java 10.01 67.48 0.35 20.64 1.39 0.16 DI Yogyakarta 24.71 66.29 1.43 7.1 0.48 none West Kalimantan 4.88 46.85 1.08 42.37 4.52 0.61 East Kalimantan 15.59 60.6 0.8 19.84 2.87 0.31 Indonesia 9.66 56.47 0.57 30.14 2.99 0.17 Source: Provincial Statistical Yearbooks

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Indonesia’s progress towards MDGs is particularly disappointing in maternal mortality and the latest data saw an increase in their maternal mortality rates (MMR). Indonesia’s latest and most accurate estimate is 420 maternal deaths per 100,000 live births. This is very high and, analyzing trend data between 1992 and 2003, there has been little progress in reducing MMR over the past decade.

Figure 11: MDG 5 - Improved Maternal Health Target 1. Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio Indicator 1990 Present Target Remark Status Maternal mortality ratio (per 100,000 No updated Needs 16 390 307 110 live births) data improvement Proportion of births attended by skilled 17 40,7% 72,4% Increasing health personnel Contraceptive use among married No updated 17a 50,5% 57,9% women aged 15 - 49 data Source: Let's Speak Out For MDG, Thematic MDG Working Groups and UN, 2007

The percentage of women using contraceptives has gradually increased over the last decade reaching 57.9 percent in 2006. Within the project area all provinces with the exception of West Kalimantan are above the national level for this indicator.

Table 47: Percentage of Women Using Contraceptives 2002 2006 Province (%) (%) West Java 56.9 62.8 Central Java 58.6 62.1 East Java 56.1 59.5 DI Yogyakarta 59.8 61.1 West Kalimantan 54.5 59.5 East Kalimantan 55.1 54.9 INDONESIA 54.2 57.9 Source: Provincial Statistical Yearbooks

Utilization of health services in Indonesia is low and self-treatment high by international comparisons. Table 48 displays the percentage of people in the project areas who undertake self- treatment and the varying degree to which they rely upon modern or traditional means. Although self-treatment is high in all provinces, the reliance upon traditional methods is significantly higher in East Kalimantan, which reflects both cultural preference and problems in access.

Table 48: Proportion of Population Who Conduct Self Treatment 2004-2006 Modern Traditional Others Province (%) (%) (%) West Java 83.6 33.4 12.1 Central Java 87.7 30.7 9.5 East Java 84.5 43.0 12.2 DI Yogyakarta 84.6 33.8 10.4 West Kalimantan 81.8 37.4 16.2 East Kalimantan 84.7 84.2 13.6 INDONESIA 82.3 38.3 13.2 Source: Provincial Statistical Yearbooks

While decentralization has brought opportunity for increased efficiency, flexibility and accountability, the ability of the central government to influence decisions about priority setting and funding is

Preparing the Regional Roads Development Project – Final Report 63 Annex 7 Poverty and Social Assessment limited. The health system has been also affected by the challenges of intergovernmental relationships functioning in a decentralized system, with some functions such as disease surveillance becoming more difficult.

The health sector has been acknowledged as a priority by the government of Indonesia, but this has not yet translated into a larger budget allocation. The majority of private spending on health is out-of-pocket. Recently an important step was taken by the government to ensure that the poor can access health facilities. Recently the GoI has implemented a national social health insurance scheme for the poor, or Askeskin. Under this program, begun in 2005, the government pays the premiums for 60 million poor. Some studies have shown that this scheme has significantly helped the poor, including

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5. Gender and Development

Gender concerns and gender disaggregated data have been mainstreamed throughout this report. In particular, women's perspectives on road improvement impacts, both positive and negative, are highlighted in Section 8 of this report.

The PSA concludes that a separate Gender Strategy is not required for the project. However, gender issues are explicitly addressed within the HIV/AIDS and Human Trafficking Prevention Program and within Resettlement Planning documents especially pertaining to female headed households.

A gender analysis has been conducted and an overview of gender issues in Indonesia and specific data for the project area are provide in the section below.

5.1 Gender issues in Indonesia

Indonesia has made significant progress towards gender equality but it is still lagging behind its neighboring countries and many inequalities between men and women and between boys and girls exist.

Table 49: Gender Development Indices

Human Development Report, UN, 2007-08

The gender-related development indicates that women still face numerous social barriers although there have been improvement in terms of women’s representation in parliament, the proportion of women in senior official managerial and technical staff positions at work.

The Human Development Report 2007/2008 ranks Indonesia's Gender Development Index (GDI) at 94 out 157 countries. A combination of women's lower literacy rate of 86.8 percent (as opposed to 94 percent for men), women's fewer mean years of schooling (6.5 years compared to 7.6 years ), and women's smaller share of earned income (31.2 percent compared to 68.8 percent) contributed to counteract women's advance in life expectancy resulting in the country's lower GDI ranking. Women’s health is of particular concern in Indonesia, which has one of the highest maternal mortality ratios in the region. The share of women in wage employment in the non-agricultural sector has declined, as has the proportion of seats held by women in the national parliament.

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The most recent ADB Country Gender Assessment for Indonesia (July 2006) identified seven key findings:

• Women's participation in paid employment and access to productive resources need to be improved. • Gender inequality in access to education is most severe among the poor and in rural areas. • Health services are not reaching rural women and girls. • The institutional framework for gender mainstreaming needs to be strengthened. • The participation of women in decision making is essential at all levels. • Violence against women takes many forms, and few services are available to victims. • The rights of international migrants require protection.

5.2 Women Headed Household

Table 50: Percent Male and Female At least six million households in Indonesia are headed by Headed Houses in the Project Area women whose husbands have died, divorced or left them. Project Male Female Provinces They include single women with children or unmarried West Java 93.1 6.9 women who are the main breadwinners of their families. Central Java 91.0 9.0 More than half of these women breadwinners are from poor DI Yogyakarta 90.1 9.9 families. The situation is worsened by existing social and East Java 88.7 11.3 cultural values in Indonesian society which are not always West Kalimantan 93.0 7.0 supportive of women head of households. East Kalimantan 95.7 4.3 Source: Provincial Statistical Yearbooks, 2007 Table 51 displays the sex ratio and average household size for districts in the project areas. The low female to male sex ratio in the East Java, Central Java and Jogyakarta districts corresponds to the overall provinces statistics in Table 50 showing high percentages of female headed households.

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Table 51: Subcomponent 1 Districts - Sex Ratio and Average Household Size

Population Average of Project Area Provinces Total Sex ratio HH and Districts Population Male Female Size

Cilacap 811 811 100.0 3.8 1,622 Banyumas 753 738 102.0 3.8 1,491 Kebumen 599 604 99.2 3.8 1,203 Purworejo 361 356 101.3 3.6 717 Wonogiri 476 503 94.5 3.6 979 Central Java 16,054 16,123 99.6 3.8 32,178 Sukabumi 1,100 1,025 107.4 3.5 2,125 Cianjur 1,151 1,090 105.6 3.5 2,241 Garut 1,178 1,198 98.4 4.0 2,376 Tasikmalaya 879 864 101.8 3.6 1,743 Ciamis 782 783 99.8 2.9 1,565 Bandung 2,221 2,178 101.9 3.9 4,399 West Java 20,579 20,158 102.1 3.7 40,738 Pacitan 274 286 95.7 3.6 550 Trenggalek 340 343 99.2 3.6 688 Tulungagung 490 498 98.5 3.6 984 Blitar 569 581 98.0 3.6 1,141 Malang 1,166 1,189 98.0 4.0 2,420 Lumajang 466 501 93.0 3.8 1,026 Jember 1,069 1,161 92.1 3.5 2,279 Banyuwangi 764 777 98.3 3.6 1,575 East Java 18,277 18,315 98.6 3.7 36,592 Kulonprogo 183 190 96.4 3.6 374 Bantul 407 417 97.6 3.6 824 Gunungkuidul 328 355 92.3 3.5 683 Di Yogyakarta 1,615 1,666 96.9 3.2 3,282 Berau 83 74 4.0 157 Malinau 27 25 111 4.1 52 Bulungan 36 49 109 4.6 106 Nunukan 62 54 74 3.9 117 East Kalimantan 1,529 1,408 114 4.0 2,936 Singkawang City 90 82 109.1 0.3 172 Sambas 245 236 103.4 4.0 481 Sanggau 192 185 103.4 4.4 377 Bengkayang 104.1 93.6 111.2 2.1 197.8 Pontianak City 256.4 253.4 101.2 2.0 509.8 Pontianak District 352.3 338.4 104.1 2.0 690.8 Sintang 178.8 171.5 104.3 2.2 350.3 West Kalimantan 2,110 2,008 105.1 4.5 4,118 Source: Provincial Statistical Yearbooks for 2007, Public Bureau of Statistics

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5.3 Gender and Education

Table 52: Illiteracy in Indonesia by Sex and Location 2004 Urban Rural Total Illiteracy Male Female Total Male Female Total Male Female Total 2.56 6.99 4.79 7.48 15.42 11.45 5.34 11.71 8.53 Source: BPS, People Prosperity Statistic year of 2004

Boys and girls are now enrolled in equal numbers at the primary level. At the junior secondary level there are more girls than there are boys. At the senior secondary level girls have also made good progress, though in urban areas they still lag marginally behind boys. Despite the fact that the enrolment rate of girls for the tertiary level of education increased, they are still represented in smaller proportions. Factors that constrain girls’ access to tertiary education include the physical distance of facilities as well as early marriage.

The general observation that the poorer the family, the lower the proportion of girls enrolled in school does not hold true in Indonesia. In 2002, the net enrolment rates for girls from the poorest quintile were about the same as, or higher than, those for boys at the primary, junior secondary, and senior secondary levels, demonstrating an impressive level of gender equality. Among the richest quintile, a higher proportion of boys than girls are enrolled at the secondary level. The gap between rich and poor in education enrolment is much bigger than the gap between girls and boys.

Table 53: Average Educational Duration By Provinces and Gender 2002 Provinces Girls Boys Jawa Barat 6,7 7,7 Jawa Tengah 5,9 7,2 DI Yogyakarta 7,3 9,0 Jawa Timur 5,9 7,2 Kalimantan Barat 5,8 6,9 Kalimantan Timur 7,8 9,1 INDONESIA 6,5 7,6

5.4 Gender and Decentralization

Indonesia's decentralization process presents both opportunities and further challenges for attaining gender equality. Decentralization presents an opportunity for women to play a greater role, but it has also indirectly decreased women’s participation in the executives. The political transformation toward regional autonomy has the potential for great change in Indonesia and is intended to bring government closer to the people. One of the most positive trends has been a heightened awareness by people that they can and should participate in local governance. The devolution of budget processes to local government institutions has in some cases led to opportunities for greater involvement by citizens, including women, resulting in more gender responsive budgets.

Challenges include that women's representation in public decision making is generally still limited. In some areas decentralization has worryingly been accompanied by a revival of conservative religious interpretations of gender roles and discriminatory local customary laws.

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5.5 Women's Voice in Politics and Decision Making

Women's political participation was very low in Indonesia's New Order period. Recent years have seen changes, particularly in the run-up to the 2004 elections. A 30 percent soft quota was established for women in political party recruitment. While not all parties met this target and none ranked women as high as their male counterparts in the party lists, the discourse about the need for increased political participation of women reached a new level of prominence. As a result there was a small increase in the number of women elected to political office and the April 2008 elections saw the percentage of female legislators rise to only to 11 percent from 0 percent.

5.6 Women in the Labor Force

Labor force discrimination remains evident across the nation. Only 41 percent of women versus 73 percent of men are either working or looking for work. Of those in the labor market, women are more likely to be unemployed than men. Within the formal sector, women receive lower wages. Eighty percent of the difference between men’s and women’s wages is due to the unequal treatment of women.

Unpaid family workers account for 27 percent of the working poor, those in the bottom quintile against 18 percent overall. This is down from 33 percent and 23 percent in 1993. Unpaid family work is very much female dominated. Unpaid family work accounts for 49 percent of women who work in the bottom quintile and 36 percent overall. Measures are needed to increase the productivity of labor in the informal sector, particularly in the occupational niches occupied by the very poor.

5.7 Violence Against Women and Women’s Access to Justice

Women are more often the victims of violence than men, and they are also often the victims of violence in regions of civic strife and military conflict. Violence against women devastates many lives. Aside from the immediate physical injuries, victims of violence suffer emotional and psychological damage that is more difficult to treat. Violence takes many forms, and includes domestic violence, violence against women in conflict and postconflict areas, and human trafficking.

One key issue is that documenting violence is very difficult, given that only a few cases are officially reported. In many cases, violence is considered a private issue rather than a public one. A second challenge is that financial and human resources dedicated to issues of violence against women are generally insufficient to ensure that victims receive the support to which they are entitled. On the institutional front, Indonesia established a National Commission on Violence Against Women in 1998, and Law 23/2004 on the Elimination of Domestic Violence was enacted in September 2004.

The reality that women at the grass root level are experiencing various forms of violence and abuse to their rights has caught the attention of a number of community-based programs. With their very limited knowledge of justice, women are disempowered in fighting against values applied by local culture, social norms, and religious dogma; while the state system does not side with them. Several legal issues related to women have been identified, i.e. inadequate access of women to local laws, limited legal training on women’s rights, perpetration of violence against women by law enforcement and police officers and inadequate support to Special Investigation Rooms in police precincts.

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5.8 Migration and the Project Border Area of Kalimantan and Malaysia

In North Kalimantan the proposed corridors meet the Malaysian and Brunei borders in three places. The project will investigate these sites to review current border facilities and operations, including issues relating to security, customs, immigration, quarantine and heavy vehicle control. The social assessment also considers the impact that improved project roads may have on migration, including illegal migration and human trafficking.

Malaysia is an attractive destination for Indonesian migrants because of the geographical proximity and cultural familiarity between the two countries. The number of Indonesian migrant workers is estimated at around 4 million, with an annual flow of migrants of about 400,000, or 4 percent of the total labor force. The corridor is characterized by a large presence of undocumented migrants and an increasing percentage of women. Best estimates are that there are 1.2 million undocumented workers in Malaysia, of which 60 percent are Indonesian and about 60 percent of Indonesian migrants in Malaysia are women.

The majority of migrants are from the rural areas where poverty is greatest. Irregular migrants are highly vulnerable, with no guarantees for tenure, minimum wages, or good working conditions. Documented cases of abuse and exploitation abound, even where migration occurs legally. Only about 10 percent of the districts in Indonesia send significant numbers of migrants overseas. In certain provinces of Indonesia, remittance inflows are greater than total local income. For example in West Nusa Tenggara, remittances totaling over 300 billion rupiah in 2002 exceeded the 61 billion rupiah in local revenue in 2001.

There are significant costs associated with migration that often force migrant workers into debt, such as administration fees, placement fees, pre-departure accommodation and living costs, and transportation. Migrant workers have to take out loans to cover these costs; though with limited access to the formal financial sector, they are often forced to turn to informal loan providers, including the migration recruitment agents themselves who will deduct the money from migrants’ salaries. The average wage of migrant workers in Malaysia is between US$90 and US$200 per month, and there is little difference between the salaries paid to male and female migrant workers. Estimates from surveys carried out by the of Bank Indonesia indicate that about 45 percent of migrant worker salaries are remitted back to Indonesia.

Table 54: People From Project Areas Working Abroad in 2006 % Going to Province Total Male Female Malaysia Central Java 33,008 11,308 21,700 73.0 East Jawa 129,118 58,954 70,164 62.6 West Java 68,263 7,808 60,455 18.8 Yogyakarta 5,414 2,382 3,032 86.0 East Kalimantan 2,209 1,102 1,107 96.0 West Kalimantan 31,796 12,016 19,780 96.6 Total Project Area 269,808 93,570 176,238 58.7 Source: BPS, Senunas 2006

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5.8.1 Female Migrant Workers

Overseas migration is one of the largest and growing sources of employment among poor rural women. Poverty, unemployment and a lack of formal education are some of the driving forces behind increasing numbers of Indonesian women who seek to migrate abroad.

The migration of Indonesian workers overseas has been going on since the end of the 1970’s and, by the 1980’s, female migrant workers outnumber the men. In 2006, out of 680,000 registered overseas Indonesian migrants, more than 79 percent are women and approximately 88 percent of these women work in the informal sector mostly as domestic helpers. Indonesian men predominate in migration to the Republic of Korea and the United States, but women predominate in migration to most of the other destination countries such as Malaysia, Saudi Arabia, and Singapore.

Women migrant workers remain extremely vulnerable from the moment they leave their villages, throughout the placement period and upon their return to Indonesia. Overseas women workers are vulnerable to persistent violations of worker rights, such as rape, harassment, cuts in wages, dire working conditions and other human rights abuse, as well as falsifying of documents and the consequent illegal status of migrants. Women have less access to formal credit and are more vulnerable to debt associated with migration costs.

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6. Indigenous Peoples Groups

The social assessment conducted for the project concludes that indigenous people will not be negatively affected by the project and will benefit from the project. No indigenous Peoples Development Plan is recommended for the project.

Indigenous peoples will benefit from the project and it is it is not anticipated that indigenous communities will be significantly impacted by resettlement activities; East and West Kalimantan are the provinces least impacted by potential resettlement and projects surveys reveal that traditional indigenous communities are living more than ten km from the existing roads. Nevertheless, resettlement organizations staff will include members of indigenous groups and ensure that communications and public consultations are undertaken with respect for appropriate language groups and cultural sensitivity.

The project analysis and findings on Indigenous Peoples living in the project areas are provided in the sections below. The ADB's Indigenous Peoples Impact Classification Forms are provided in Appendix 3 of the report.

6.1 Defintion of Indigenous People in Indonesia

There is ongoing debate on the definition of indigenous peoples in Indonesia. The term was frequently associated with native people, native groups, isolated people, swidden farmers, forest squatters, and adat communities or adat law communities. Another term used to define the indigenous peoples was ”groups of people who live or are nomadic in geographically remote and isolated areas and are socially and culturally alienated and/or still underdeveloped compared to other Indonesian communities in general.” In addition to the locality factor and limited access to “modern life,” indigenous peoples are also identified by their use of forest resources.

In March 1999, a congress of Indonesian indigenous peoples was held, attended by 208 adat communities representing 121 indigenous groups in Indonesia. The congress agreed to establish an alliance of Indonesian indigenous peoples. AMAN, the national indigenous peoples’ organization of Indonesia, defines indigenous peoples as groups of people having a historical continuity that developed in a given geographical area, and having their own values, ideologies, and economic, cultural, and social systems, as well as territories.

Adat communities live in many parts of Indonesia, in forests, mountains, and coasts. Some are nomadic, some sedentary. They may carry out gathering, rotational farming, agroforestry, fishing, operating small-scale plantations, and mining for their subsistence needs. However, this does not mean that they are never involved in trade. Indeed, it is difficult to find communities really isolated from the external world and interaction occurs to different degrees.

While censes data does not provide population totals for indigenous peoples, it does identify the main indigenous group at a villages level. Table 58 shows the proportion of villages in the project areas of Kalimantan by main ethnic group. In East Kalimantan, the main indigenous group is the Dayak people, which consist of a number of different tribes. Over 50 percent of people living in the East Kalimantan project area are Dayak people. At least 10 other indigenous/ethnic groups live East Kalimantan project area in. In the West Kalimantan, Sambas people dominate with over a 55 percent of villages being mainly of Sambas ethnicity, followed by Sanggua and Taba people at 7.3 and 4.9 percent respectively.

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Table 55: Proportion of Villages in Project Districts by Main Indigenous Groups East Kalimantan West Kalimantan Group Name % Group Name % Dayak Putuk 29.0 Sambas 55.1 Dayak Tagel 10.4 Sanggau 7.3 Dayak Tenggalan 10.1 Taba 4.9 Tagelan 7.5 Jawa 2.6 Dayak 6.8 Ribun 2.6 Punang 6.8 Tebang 2.6 Tidung 6.5 Pandu 2.4 Dayak Kenyah 6.2 Mali 2.2 Bugis/Ugi 5.5 Keramai 1.8 Jawa 5.2 Menyuke 1.8 Bulungan 2.6 Pampang 1.8 Kendayan/Ken Berusu/Burusu 2.3 1.7 ayan Bantik 0.3 Desa 1.5 Dobel 0.3 Gaik/Gali 1.1 Lepo tau 0.3 Peruan 1.1 Semayang 1.1 Total 100% 92%* * The remaining 8 percent are comprised of 19 indigenous groups, each of with comprise less than 1 percent of the total. Source: Census 2006, PBS

During the New Order period, many efforts were made to limit the expression of ethnic identity through policies and programs on development emphasizing uniformity. Raising ethnic identity was considered dangerous to state unity. Politics to eliminate ethnic identity and to unify sociopolitical life were prominent throughout the Saharto regime. Unification affected sociocultural systems and changed structure of local governance. The unification also affected education curricula and only a few religions were officially recognized, namely Islam, Protestantism, Catholicism, Buddhism, and Hinduism. Communities were encouraged to convert from their traditional beliefs to the officially recognized religions. Culture as a system includes all aspects of communities’ life and unification meant disintegration of that system. This loss was also felt through the government’s policy of limiting cultural expression to activities in the arts.

Today, the socio-cultural identity of indigenous groups in Indonesia is going through a process of reawakening and changes are occurring in relationships between and among communities and cultures. In the past, the Javanese were considered dominant because they controlled the national political system, which strongly determined local social, economic, and political systems. Nowadays, with the rise of regional autonomy and ethnic identity, the dominant communities are not always Javanese or in Java. Other parts of the country also appear to have dominant and subordinate classes in this context. Nevertheless, existing legislation does not provide a strong legal base for the protection of adat communities and their rights. There is no generic law in Indonesia that specifically and comprehensively deals with adat communities, rather, provisions related to the recognition of adat communities and their rights are dispersed in various parts of the Constitution, sectoral Acts, and regulations. Law reform is needed not only in substantial issues, but also in the process and mechanism of participatory lawmaking.

6.2 Overview of People, Languages and Religions by Province

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Table 56: Number Of Indigenous People by Project Indonesia's population of around 222 million Province people includes 500 ethnic groups speaking Provinces HH Total Person more than 600 languages. While there are no West Kalimantan 1,324 64,575 census data on the number of persons who East Kalimantan 8715 3356 self-identify as indigenous rough estimates are that more than 2 million people live under the West Java 2057 9427 isolated people category. Table 55 provides East Java 3882 15836 estimates of the numbers of indigenous people Central Java 1376 5471 living in the project provinces. DI Yogya NA NA INDONESIA 267,550 1,192,164 West Java Sources: Ministry of Social of Republic of Indonesia, 2004 The main ethnic group is Sudanese in West Java accounting for 74 percent of the population. In addition to the Indonesian language, Sudanese is widely-spoken and in some areas near the southern borders with Central Java, Javanese is also spoken. The main language spoken in Cirebon and nearby areas (Majalengka, Indramayu, Sumber) is Cirebonese, a dialect of Javanese. Indonesian is widely spoken as a second language, except in some remote rural areas. The majority of the population are Muslim (96%) and the remainder are either Christian, Hindu or Buddhist.

Table 57: Social Characteristics in Java West Java East Java Central Java Yogjakarta Sundanese (74%), Javanese (79%) Ethnic Javanese (98%), Javanese (11%), Madurese (18%), Javanese (97%), groups Sundanese (1%), Betawi (5%), Osing (1%), Sundanese (1%) Chinese, Arab Cirebonese (5%)[2] Chinese (1%) Islam (96.3%), Religion Islam (96.5%) Christianity (2.6%), Islam, Christian, Islam (91.8%), Protestant (1.2%), Hinduism (0.6%), Hindu, Buddhism and Christianity (7.9%), Roman Catholic (0.7%), Buddhism (0.4%), traditional Javanese Hinduism (0.2%), Buddhism (0.2%), Kejawen also beliefs Buddhism (0.1%) Hinduism (0.1%) practised Languages Indonesian, Indonesian (official), Javanese, Madurese, Indonesian (official), Javanese, Sundanese Indonesian Javanese Sundanese

East Java The inhabitants consist of mostly Javanese. Minorities include migrants from nearby Madura, and distinct Javanese ethnicities such as the Tengger people in Bromo, and the Samin and the Osing people in Banyuwangi. East Java also hosts a significant population of other ethnic groups, such as Chinese, Indian, and Arab people. The main religion is Islam but pockets of Hinduism, Buddhism and Animism remain.

In addition to the national language, Indonesian, they also speak Javanese. Javanese spoken in the western part of East Java is indistinguishable from the one spoken in nearby Central Java, with its hierarchy of high, medium, and low speeches. But in the eastern cities of Surabaya, Malang, and surrounding areas, the people speak a more egalitarian version of Javanese. Madurese is spoken by around 15 millions of Madurese, concentrated in Madura Island, Kangean Islands, Masalembu Islands, Eastern part of East Java, and East Java main cities.

Central Java The majority of the Central Javanese population are Muslim (96%). The remainder of the population are either Christian, Hindu or Buddhist. Although the overwhelming majority of Javanese are Muslim, many of them also profess indigenous Javanese beliefs. Santri Javanese are more

Preparing the Regional Roads Development Project – Final Report 74 Annex 7 Poverty and Social Assessment orthodox Muslim while abangan Javanese are nominal Muslim that devote more energy to indigenous traditions.

The vast majority of the population in Central Java are ethnic Javanese and constitute approximately 98 percent of the population. In addition to the Javanese, small pockets of Sundanese communities are found near the border with West Java, especially in Brebes and Cilacap regencies. Sundanese toponyms are common in these regions such as Dayeuhluhur in Cilacap, Ciputih and Citimbang in Brebes and even Cilongok as far away in Banyumas.

The most dominant language is also Javanese but there are several dialects which are spoken in Central Java. The two main dialects are western Javanese (also called Basa Ngapak which includes the "Banyumasan dialect" and the dialect of Brebes-Tegal-Pekalongan) and central Javanese. Sundanese is also spoken in some pockets near the border with West Java, especially in Brebes and Cilacap regencies. In urban centers Indonesian is widely spoken.

Yogyakarta Yogyakarta city is known as a center of classical Javanese fine art and culture such as batik, ballet, drama, music, poetry and puppet shows. It is also famous as a center for Indonesian higher education. Over 97 percent of people are Javanese and about 92 percent are Muslim.

The province of Yogyakarta bore the brunt of a 6.3-magnitude earthquake on 27 May 2006 which killed 5,782 people and left some 36,299 persons injured. More than 135,000 houses were damaged, and 600,000 people are homeless.

East Kalimantan The population is a mixture of people from the Indonesian archipelago with Dayaks and Kutai as indigenous groups living in rural areas. Other prominent migrant ethnic groups include Javanese, Chinese, Banjarese, Bugis and Malays, who mostly live in coastal areas. Indonesian is the official language with Banjar, Dayak and Kutai also spoken.

This province is the location of the oldest Hindu kingdom in Indonesia, Kutai, the existence of which is attested to by a stone manuscript, or Prasasti, which is now kept in the National Museum in Jakarta. Over 85 percent of people are Muslim.

Table 58: Social Characteristics in Kalimantan West Kalimantan East Kalimantan Ethnic Dayak (35%) groups Sambas (12%), Javanese (30%), Chinese (9%), Bugis (18%), Javanese (9%), Banjarese (14%), Kendayan (8%), Kutai (9%) Malay (8%) Religion Islam (57.6%), Catholic (24.1%), Islam (85.2%), Protestant (10%), Christianity (13.2%), Buddhism (6.4%), Buddhism (0.62%) Hindu (0.2%), Hinduism (0.19%) others (1.7%) Languages Indonesian (official), Malay, Dayak, Indonesian (official), Banjar ,Dayak Chinese dialects of Hakka and ,Kutai Teochew

West Kalimantan:

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Major ethnic groups include the Dayak, Sambas, Malay, Chinese, which make up about 90 percent of the total population. The rest are Javanese, Bugis, Madurese, and other ethnicities. Indonesian is the official language but Malay, Dayak, Chinese and dialects of Hakka and Teochew are also spoken. About 57 percent of people are Muslim and about 34 percent are Christian.

There was a serious outbreak of communal violence in the province between indigenous Dayak and Madurese settlers in late 1996 and early 1997, resulting in about 500 deaths.

6.3 Indigenous Peoples in Project Area

Field investigations were conducted to identify Indigenous communities living in the project areas of West and East Kalimantan, to determine the potential impact road improvement may have on indigenous peoples and to gather information on their perspectives about the project. Secondary data from the National Atlas on Distribution of Indigenous People28 was used to identify the names and location of indigenous communities by district, sub district and village. This data was taken to the field to be verified by sub-district and village heads. Consultations with local authorities found that much of this data was inaccurate and out of date. Local officials responsible for indigenous people in the provinces worked with the team to prepare a new list of villages along the RRDP link roads where indigenous communities reside.

In the West and East Kalimantan project areas, field investigations revealed that people living along and around the link roads could be classified into two main groups (i) indigenous peoples and (ii) migrants from Java (mainly of Madura ethnicity mainly in West Kalimantan), South Sulawesi (mainly Bugis and Makasar in East Kalimatan) and Tiongkok (mainly Chinese). Javanese and South Sulawesi people migrated to Kalimantan under the government's Transmigration Program29 in the 1980's while Tionghoa have lived in West Kalimantan well before modern times.

Indigenous people are mainly Dayak, Sambas, Sanggau, Melayu and Pontianak in West Kalimantan and mainly Dayak and Kutai in East Kalimantan. There are a number of different Dayak sub-groups including Dayak Abai, Dayak Apakayan, Dayak Bakatik, Dayak Iban, Dayak Kenyah, Dayak Toba, Dayak Sonti dan lainnya. Melayu and Kutai people, generally live in coastal and urban areas in Kalimantan, while many Dayak people mainly live in rural areas with many still living in forest and upper river areas. For these people, river transport is often the main mode, sometimes motorized but more often not. Table 59: Indigenous People in Living in Project Area by Road Link Link of Road Remark Sub District Village Total Total Indigenous Household Population Groups 505 Tanjung IP well integrated Bulungan selor-Malinau with non-indigenous. Tanjung Palas Pimping 23 739 Dayak IP not living Utara Sekatak 100 275 Kenyah,

28 National Atlas on Distribution of Indigenous People, Directorate of Indigenous People Empowerment, Directorate General of Social Empowerment , Social Ministry of Republic of Indonesia, 2003. 29 The transmigration program (Indonesian: Transmigrasi) was an initiative of the Indonesian government to move landless people from densely populated areas of Indonesia to less populous areas of the country. This involved moving people permantly from the island of Java, but also to a lesser extent from Bali and Madura, to less densely populated areas including Papua, Kalimantan, Sumatra, and Sulawesi. At its peak between 1979 and 1984, 535,000 families, or almost 2.5 million people, moved under the transmigration program. During the 1980s, the program was funded by the World Bank and Asian Development Bank as well as by bilateral donors. Violent conflict has occurred between some transmigrant and indigenous populations; in Kalimantan, hundreds were killed in fighting between Madurese transmigrants and the indigenous Dayak people. In August 2000 the Indonesian government officially cancelled the large-scale transmigration program.

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traditional life style Sekatak Kelebunan 70 350 Tidung, Berusu No IP living in this Malinau Project area 505 Malinau- “IP” found 10 km < Nunuka Simanggaris from link road Sebuku Kekayat 25 52 Dayak Melasu baru 21 42 Ngabang, Kunyid 30 54 Dayak Apas 22 47 Putuk

505 Malinau – “IP” found 10 km < Nunuka Simanggaris from link road Sembakung Lubuk buat 30 94 Dayak Pulau keras 41 196 Putuk,Daya k Tenggalan 010 Tanjung IP live more 10 Km Sambas Harapan-Galing- from road Galing Tempapan Hulu 218 1,092 No name Sajingan Sago 178 893

010 Galing- IP live more 10 Km Sambas Sajingan-Aruk from road Sajingan Keliau 120 613 No name Besar Subanga 108 541 Sabung 127 637 026 Balai Most IP live more 10 Sanggau No name Karangan – Km from road Entikong Srh tembawang 200 1,137 Entikong Andar sontas 75 379 DayakSonta Some IP have moved Entikong 100 523 s 027 Entikong- to the road in order to Boundary better access Dayak Iban Serawak schools and services No IP living in Project Sanggau No Name area Jangkang Selampung 100 523

No IP living in Project Sanggau area Nanga Mahap Tembaga 75 374 Dayak Iban Sebelangan 100 575 No Name 025 Kembayan- IP live more 10 Km Sanggau Balai Karangan from road Sekayam Malenggang-1 45 229 Dayak Iban Malenggang-2 24 128 Sungai tekam 100 517 024 Tayan - IP live more 10 Km Sanggau Sosok from road Tayan Hilir Subah 249 1,687 Dayak Tobak Source: National Atlas on Distribution of Indigenous People, Published by Directorate of Indigenous People Empowerment – Directorate General of Social Empowerment – Social Ministry of Republik Indonesia, 2003

Traditionally, Dyak people were nomadic and erected 'long houses' (lamin) which accommodated anywhere between 10 to 30 families. This is no longer the case for indigenous communities living along and within 10 km of the RRDP link roads. Indigenous peoples in this project area are settled in permanent locations and live in as individual families in individual dwellings, in the same manner to their non-indigenous neighbors. Many villages still have a 'long house" but these are used as a community meeting place.

Originally, indigenous religion concerned ancestor worship but over the years most have been converted to Christianity, mainly Catholicism. More recently, there has been a trend towards Islam and today there is less and less correlation between ethnicity and religion.

In East Kalimantan, along the link roads in Bulungan District, Dayak Kenyah, Dayak Tidung and Dayak Berutu people were found. In Nunukan District indigenous people were mainly Dayak Ngabang, Dayak Puruk and Dayak Tenggalan people. The main religion of the Dayak population living in these project areas is Christian, mainly Catholic, with exception Dayak Tidung who mainly follow Islam.

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In West Kalimantan, the indigenous peoples in the villages of Singkawang municipality and Sambas district and mostly Sambas and Melayu people with Dayak being in the minority. The road links from Tayan to Entikong located in Sanggau District are mostly Dayak and the Melayu are the minority group. Melayu are mainly Moslem and Dayak are Christian, mainly Catholic. In the past when a Dayak person converted from Christianity to Islam became Christian they also changed their ethnic group from Dayak to Melayu. More recently, this practice is changing and people are maintaining their claim to their original ethnic group regardless of their choice of religion.

The main source of income in the East Kalimantan project area is agriculture, mainly rice plantation. Rice using a rotational system where rice is planted in a different location each season. The rice crop is used both for community consumption and sold. Although rice plots are often some distance from the village and move with the seasons, indigenous communities living along the road are no longer nomadic. These communities also plant durian fruit, mainly in Sekatak Buji and Kelembunan villages in Bulungan District.

West Kalimantan has large rubber plantations and along with rice and other vegetable crops, indigenous people own rubber trees. Many of these are large community owned plots located some distance from the road links. Like those of East Kalimantan, indigenous people in the project area are no longer nomadic and there were no indigenous people living a traditional lifestyle with in 10 km of the link roads.

There are three types of land ownership found in these communities; (i) custom land (tanah adat atau ulayat), (ii) communal land and (iii) private land. Custom land, owned by the community, is usually conservation forest. Although, in the past this land was often used for hunting, this activity has lessened over the years. In Nunukan District, local regulations (Peraturan Daerah No. 8, 2004) explicitly identify customary land and community ownership. Communal lands are owned by a group within the community and are usually used for agricultural activity such as rice and vegetable crops and rubber in West Kalimantan. Most rice plantations are owned communally in these villages but a large degree of communal land has been distributed to individual households and is now owned privately.

In both East and West Kalimantan, private sector plantations and government forestry activity also offer employment for indigenous communities. Indigenous communities are of two mind when it comes to this activity. On one hand, wages earned for planting and maintaining trees provides an important source of secondary income. However, on the other hand, they view the forestland as traditional indigenous land and often feel their ownership rights are not respected.

Indigenous communities along the link roads in East Kalimantan are mainly poor. This is particularly the case for villages in the Nukukan district where in many villagers 100 percent of households are below the poverty line. Conditions are somewhat better in Bulungan district, particularly in Pimping village were only 9 percent of households are below the poverty line.

Poverty is much lower in West Kalimantan with an average of only 12 percent people living below the poverty line. This is mainly due to the fact that many household have rubber plantation which provide relatively good stable incomes.

Indigenous communities along the roads in West and East Kalimantan were unanimously in favour of road improvements. Condition of many sections are poor, gravel roads and not passable for buses. For example, in East Kalimantan a trip from Malinau to Tanjung Selor, about 200 km, takes up to 8 hours by hire car/taxi and cost Rp 200,000. For a trip from Mensalong to Sebuku, a distant of 60 km, passenger pay cost Rp 70,000. Dayak people living along near by rivers have petitioned

Preparing the Regional Roads Development Project – Final Report 78 Annex 7 Poverty and Social Assessment the government to move them to the road once it is improved to avoid flooding and improve their living conditions.

The social analysis conducted for the East and West Kalimantan road section concludes that indigenous people will not be negatively affected by the project and will benefit from the project. No Indigenous People Development Plan is recommended for the project.

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7. HIV/AIDS and Human Trafficking Prevention Plan

The PSA concludes that an HIV/AIDS and Human Trafficking Prevention Plan is required to mitigate increased risks arising from the road improvements. The rationale, summary of the plan activities and budget are provided in this report.

A Framework, TORs and budget for the implementation of the plan have been provided in separate Planning document that includes all the targeted provinces as of 2010.

7.1 Rationale for the Prevention Plan

Social risks have been identified for the project and appropriate mitigation measures are in place in the HIV/AIDS and Human Trafficking Prevention Plan (HAHTP). An HIV/AIDS and Human Trafficking Prevention Program (HATPP) is required to ensure that communities are not subject to increased risk of HIV/AIDS and human trafficking because of the improved road infrastructure. The improved road will increase migration and mobility generally and, in particular, the more open borders between Indonesia and Malaysia will increase economic activity between the two countries. Although these changes to transport facilities will bring many positive economic and social benefits, the increase migration and mobility also have well documented interlinked impacts for HIV/AIDS and human trafficking.

Although the estimated annual number of new HIV infections decreased in South and South-East Asia from 450,000 in 2001 to 340,000 in 2007 (still most up to date data), in South-East Asia and particularly in Indonesia, the prevalence of HIV is growing. The increasing number of new HIV infections in Indonesia makes the epidemic one of the fastest growing in Asia. Most recent estimates indicate that there are more than 200,000 people living with HIV (PLHIV) in Indonesia. In the near future HIV is predicted to be predominantly spread through sexual modes of infection. In Central Java in 2010 the Due Diligence Team updated health data as part of their work and found support for a future prevention plan.

The majority of HIV infections in Indonesia occur through the use of contaminated injecting equipment, unprotected paid sex and, to a lesser extent, unprotected sex between men. Many injecting drug users also buy or sell sex. According to estimates of adult populations at risk of HIV Infection in 2006, the National AIDS Committee reported that at there were 219,200 people injecting drugs and 50 percent of them were infected with HIV. Two of the five provinces most affected by injecting drug use are the East and West Java. HIV/AIDS prevalence rates are disproportionately high in West and East Kalimantan.

Thousands of people have been documented as having been victims of human trafficking. Trafficking instances occur throughout the country, but particularly in West Kalimantan, East Java, Central Java, East Nusa Tenggara, Lampung, West Java and Sulawesi. The most common forms of trafficking revolving around trafficking of women, men, girls and boys into the manufacturing industry and plantations as well as women and girls into domestic work and forced prostitution. Women sold as “mail order brides” and the forced reproductive servitude of expectant mothers for the purpose of selling their babies are also documented forms of trafficking.

Most human trafficking to Malaysia takes place through two major corridors, one of which is known as the western corridor. The western corridor is composed of two points of departure to Malaysia from Batam and Entikong. Once people cross into Sarawak through Entikong, they can then travel by air from Kuching to Kuala Lumpur. Traffickers from most of Sumatra and the western part of

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Java use this corridor. West Kalimantan is seen by experts as a “trafficking hotspot” and is considered a major transit, source and destination area for trafficking. The International Organization for Migration (IOM) has supported existing shelter and service facilities for trafficked persons in Pontianak, Jakarta, Surabaya and Makassar. In July 2006, these facilities provided services to a total of 1,231 trafficked persons – 329 (295 female and 34 male) of them originated from West Kalimantan with the majority of these cases involving exploitation in Malaysia30. Groups vulnerable to HIV/AIDS and human trafficking that are of particular concern to the project are construction workers and communities along the road improvements. Potential impacts of the road project on HIV/AIDS and Human Trafficking include the following:

• Construction activities associated with the road project may affect the spread of HIV/AIDS and STIs. Road workers will be stationed at construction sites and many of these may be poor migrant workers and these workers will be predominantly young, sexually active people. • The communities bordering the construction sites interacting with the construction workers will be vulnerable to HIV/AIDS and trafficking for prostitution. The interaction might lead to the introduction of HIV and sexually transmitted diseases (STI) from the newcomers to the community members and vice versa. After completion of the works, workers with HIV/AIDS and STIs will take them back to their communities of origin. • When the roads are improved there will be the potential for people living away from the roads and outside the project areas to migrate to the road areas. This may crate new residential zones along the road changing the structure of communities. Peoples’ lives may become unstable increasing their susceptibility to drug use and HIV/AIDS. • Improving the roads will promote tourism along the southern coast of Java and in West and East Kalimantan. This may increase the potential risk of HIV/AIDS to nationals and foreigners and may increase the opportunities for human traffickers. • Road improvements may provide more favorable routes for drug dealers increasing the flow of illegal drugs to the areas and the number of drug users in the project area. • The road project will significantly improve access to and from Indonesia and Malaysia. Improving the roads linking Indonesia and Malaysia will facilitate the migration of poor Indonesian workers to Malaysia, which may aggravate the epidemic’s spread. Subsequently, this may also result in increased discrimination against people living with HIV/AIDS. As traffic increases along the Southern Coastal Corridor and between the two countries, truck drivers might also contribute to accelerating the spread of HIV and STIs. • The project will improve the road and border facilities at the Aruk allowing increased passengers and cargo movement. These improvements will make the Aruk border crossing more appealing to commercial transport and tourism. However, it is likely that these improvements will also appeal to human traffickers who will shift their transport routes to this border crossing and may even increase the number of victims originating in the project area.

7.2 Implementation Arrangements

The RRDP HIV/AIDS and Human Trafficking Prevention Plan (HATPP) will be implemented in the province of West Java, Central Java, Jogyakarta, East Java, West Kalimantan and East Kalimantan. All HATPP activities will be consistent with Indonesia's National HIV/AIDS Strategy

30 When They Were Sold, International Catholic Migration Commission (ICMC) and Indonesia American Center for International Labor Solidarity, November 2006.

Preparing the Regional Roads Development Project – Final Report 81 Annex 7 Poverty and Social Assessment and Action Plan and policies to prevent human trafficking. All HATPP activities will support ongoing government prevention programs and will be implemented through the relevant national, provincial, district and sub-district agencies working in the project area. Therefore, HATPP will not only mitigate potential risks arising from the project but will help to build capacity throughout stakeholders and partners. The mitigating measures will take two forms:

1. A specific HIV/AIDS and Human Trafficking Prevention Plan financed under the loan is included. This prevention Plan is consistent with prevention policies of Indonesia and ADB’s social development policies and will target construction workers and resident populations in the Project area.

2. The need for information, education, and communication on HIV/AIDS and STIs and the prevention of trafficking will be made a contractual obligation of the construction contractors. This obligation will include the provision of HIV/AIDS and Human Trafficking awareness training to construction workers and full cooperation with project and local prevention activities.

Action for the control and prevention of HIV/AIDS and Human Trafficking would include:

• Baseline surveys; • Advocacy • Information and education campaigns; • Provision of Medical Packages (HIV/AIDS and STI testing clinics at construction sites); • Reporting and, • Independent Monitoring.

It is recommended that the prevention plan is undertaken through cooperation with Indonesia's National AIDS Committee (NAC) and Provincial AIDS Committees (PACs). These agencies would take the lead roles to plan, coordinate, monitor and report activities in each province. NAC has demonstrated strong support for this prevention plan and, along with West Kalimantan PAC, have contributed advice, costs estimates and prepared proposals for undertaking the work. As the Human Trafficking component will focus on increasing awareness of the problem, NAC's experience with information and education programs can readily accommodate the administration and delivery of this activity within a the single prevention plan.

It is estimated that the total budget of the HIV/AIDS and Human Trafficking Prevention Plan would be Rp. 320 million, to be expended during Tranche 131. Although all provinces involved in the Project will participate in the Prevention Plan, it is highly recommended that greater emphasis is placed on East and West Kalimantan32, where the project will be providing access to new boarder crossings into Malaysia. Hence, besides, the risks to communities from an inflow of construction workers, it is anticipated that the East and West Kalimantan road improvements will significantly increase truck traffic in the longer-term, which will tend to increase the already significant sex industry in these provinces. Furthermore, the boarder areas between Kalimantan and Malaysia are recognized human trafficking "hot spots'. The implementation of these activities should begin at least 3 months prior to the commencement of civil works.

31 Although, West Java and Jogyakarta road improvements do not begin until Tranche 2, it is highly recommended that the HIV/AIDS and Human Trafficking Prevention Plan begin as early as possible. 32 Although, the populations levels in East and West Kalimantan are relatively low in comparison to provinces of the Java Corridor, the risk of the project increasing the severity of HIV/AIDS and human trafficking indicates that Kalimantan should receive funding disproportionately to its population size.

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8. Community Perceptions of Road Improvement

8.1 Road Usage

Overall, both poor and non-poor are frequent road users with 99 percent of respondents stating that they used the road daily or several times a week.

Table 60: Frequency of Road Use As a % of Expenditure Group Several times Several times Less than once Group Daily per week per month a month Total Poor 83.6 16.4 0.0 0.0 Total Non-Poor 90.7 8.1 1.2 0.0 Total Survey 89.6 9.4 1.0 0.0 Women 93.9 6.1 0.0 0.0 Source: Project Road User Survey

There were no significant differences in the reasons that poor, non-poor or women use the road. Table 61: Main Reason for Road Usage As a % of Expenditure Group To Non To To To Health Group Farm Agricultural To Market School Centre Work Land Total Poor 18.8 27.1 12.5 16.7 25.0 Total Non- Poor 17.9 24.6 16.4 15.1 26.0 Total Survey 18.0 24.9 15.9 15.3 25.9 Women 19.2 15.2 15.9 21.2 28.5 Source: Project Road User Survey

About 70% of both poor and non-poor respondents felt that current road conditions met their needs. Overall, about 92% stated that travel was not usually cancelled due to bad road conditions. However, when and for respondents had travel cancelled more often. This most likely reflects the lack of vehicle ownership by this group.

Table 62: Current Road Conditions As a % of Expenditure Group Do the current road conditions Is travel canceled due bad Group meet your needs road conditions Yes No Yes No Total Poor 70.5 29.5 14.0 86.0 Total Non-Poor 70.2 29.8 7.0 93.0 Total Survey 70.2 29.8 8.1 91.9 Women 81.6 18.4 13.6 86.4 Source: Project Road User Survey

8.2 Community Perceptions of Road Improvement Impacts

There does not appear to be a great deal of difference between how the poor and the non-poor believe the road improvements will benefit them. Overall, 62.3 percent all respondents stated that

Preparing the Regional Roads Development Project – Final Report 84 Annex 7 Poverty and Social Assessment the improved road would make traveling easier for them with time saving (13.5 percent) being the second most important. In Resettlement Planning work and Due Diligence work in 2010 the communities and local leaders strongly supported road improvements.

However, women had different perspectives; 38.1 stated that improved access to schools would be the most important benefit whereas only 3.8 percent of respondents overall choose this as the most important. There was little emphasis placed on reduced transport costs by both poor (6.0 percent) and non-poor groups (8.3 percent) but women were somewhat more concerned about costs and 11.4 thought reduced transport costs would be important. This may reflects the relatively short distances to markets and social services in the immediate project area. Less damage to vehicles was noted by both poor and non-poor.

Table 63: Most Important Benefits From The Improved Road Easier and Improved faster access to Improved Lower Less Cleaner movement/ health care Groups access to transport damage to environment Save time improved services/oth school costs vehicles /less dust transport in er social general services Poor 55.4 3.6 13.3 6.0 2.4 2.4 16.9 Non-Poor 63.6 3.8 6.8 8.7 3.6 0.6 12.9 Survey 62.3 3.8 7.7 8.3 3.4 0.9 13.5 Women 36.2 38.1 8.6 11.4 1.9 1.9 1.9 Source: Project Road User Survey

Increased job opportunities and economic development in the area were clearly seen as the most important economic benefits with 38.9 percent and 33.5 percent of respondents selecting these respectively. Non-poor respondents placed greater emphasis on economic development in the area and the possibility of increased income sources whereas poor respondents placed greater emphasis on new job opportunities. Both poor and non-poor respondents anticipated increases in land value, with 14.7 percent stating this would be the most important economic benefit. Increased access to markets was significantly more important for poor respondents (17.6 percent) than for non-poor respondents (5.8 percent). Overall respondents rated improvements in transport services as the least important.

However, women had very different perspectives. Increased land values and improvements in transport services, such as more bus services, were clearly the most important benefits for women with 36.5 percent and 30.2 percent of women selecting these as the most important respectively.

Table 64: Most Important Economic Benefits From The Improved Road Economic Improved development Improved transport in the New job Increase in Group access to services (i.e: area/increase opportunities land values markets more bus in income services ) sources Poor 17.6 22.0 39.6 13.2 7.7 Non-Poor 5.8 35.6 38.8 15.0 4.8 Survey 7.6 33.5 38.9 14.7 5.2 Women 4.8 15.9 12.7 36.5 30.2 Source: Project Road User Survey

Community perspectives of negative impacts differed between poor and non-poor respondents and, once again, women had quite different views. Overall, 42 percent of survey respondents thought

Preparing the Regional Roads Development Project – Final Report 85 Annex 7 Poverty and Social Assessment that disruption during construction would be the most negative impact, however only 27.4 percent of poor respondents selected the most severe negative impact. Overall 20.3 percent of respondents agreed that loss of land would be the most significant negative impact, however, this was viewed with much greater significance by poor respondents (30.1 percent) and women (28.9 percent) then non-poor respondents (18.6 percent). Women rated traffic safety (35.6 percent) as the most significant negative impacts from the road improvements while, overall only 14.7 percent of survey respondents thought this would be a significant negative impact.

Table 65: Negative Impacts Rise in Social Disruption Problems More Dust & Loss of Land Group During Traffic Safety (HIV/AIDS, human Noise After /Resettlement Construction Trafficking had a Drug use) Poor 27.4 23.3 16.4 30.1 2.7 Non-Poor 44.5 20.0 14.5 18.6 2.3 Survey 42.0 20.5 14.7 20.3 2.4 Women 20.0 15.6 35.6 28.9 0.0 Source: Project Road User Survey

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The expectation of a rise in HIV infection rates, trafficking of women and children or increased drug use was very low. However the survey revealed that only 53.5 percent of respondents had heard of HIV/AIDS, with only 31.7 percent of poor respondents stating that they had occurred at HIV/AIDS. Women appeared to be more aware, with 67.3% stating that they had heard about HIV/AIDS. Lack of awareness is one reason why people did not anticipate these negative impacts but, importantly, there is little understanding of the link between road improvements and increases in these problems. Hence, the connection between improving their road and increasing social risks is not made.

Table 66: Have you heard of HIV/AIDS? Group Poor 31.7 68.3 Non-Poor 57.4 42.6 Survey 53.5 46.1 Women 67.3 32.7 Source: Project Road User Survey

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9. Conclusions

The project has clear links to ADB's Country Poverty Analysis for Indonesia and will contribute to the transport sector which has been identified as a national priority for poverty reduction.

The Government’s Medium-Term Development Plan 2005–2009 seeks to raise levels of sustainable economic growth, create jobs, and accelerate the achievement of the MDGs. ADB’s strategy for 2006–2009 is to help the Government achieve higher levels of pro-poor sustainable growth and to enhance social development. The project directly contributes to these objectives by improving road transport efficiency and improving the access to income-generating opportunities and social services. In particular, the less developed areas, such as in East Java and the northern road sections in Kalimantan where road conditions are poor, will have improved connectivity which will help create the conditions necessary for developing local resources and generating employment to raise living standards.

ADB’s objective for the transport sector is to improve Indonesia’s transport network by increasing the quantity and quality of infrastructure and operations. RRDP directly addresses these constraints by focusing on one of the ADB's key areas of engagement, to improve infrastructure. The project will increase investment in the transport sector by improving capacity of 1,274 km of selected roads in the South Java Corridor and in East and West Kalimantan. RRDP will also help improve inefficient institutional structure and inadequate planning through capacity building activities within MPW and provincial transport agencies.

The project will improvement road at the border with Malaysia, thereby promoting regional cooperation, improving cross-border trade, transport services and livelihoods of the poor living in the border area. It will also contribute to the efficient development by strengthening connectivity between the Indonesia and Malaysia, reducing transport bottlenecks and increasing competitiveness.

9.1 Project Benefits

The main beneficiaries of the project will the people and communities living in the project area. The project area covers 20 districts, 14 in Java and 6 in Kalimantan. The total population of the project area is 18 million with an average poverty rate of 19 percent. The road improvements will lead to lower transport costs, improved transport services and improved access to markets and social services, increased competitiveness, expansion of economic opportunities, diversification of rural livelihoods, and poverty reduction.

About 50 percent of people living along the project roads in Java are depended on agriculture as their main source of income but in Kalimantan this is about 85 percent. Farmers will benefit from reduced transport costs, better access to markets, increased opportunities for diversification and increase competition for their products leading to increased incomes and community development.

The project will increase economic development in the area and the growth of off-farm income opportunities, particularly in more rural project areas. These will also open new opportunities and prospects for factories and agro-processing plants. In particular, reduced transport costs and time savings will benefit the fishing industry in both Java and Kalimantan where travel constraints restricts access to ports and urban markets for small-scale fishers.

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Tourism is just starting to develop in the project areas and it is expected that the project could boost international tourism in Kalimantan and local tourism in the Java corridor.

Better roads will encourage better transport services, improved efficiency and affordability of rural passenger services thereby increasing services to villages. This will be most important in areas near the Malaysian border and in East Java where conditions are poor and there is limited bus service. Both poor and non-poor will travel more in response to increased access, lower transport costs and time savings.

Road improvements will help provide better access to jobs, markets, health care, schools and other services and will increase the range of goods and services available in the community. In the project area, over 25 percent of children under the age of 15 are not in school and women stated that improved access to schools was the most important benefit from the project.

Rural road improvements will provide better year round access for more isolated communities (Kalimantan and East Java), help to develop these communities and encourage more medical staff and primary school teachers to work there. The improved project roads and transport services will increase attendance at secondary schools and high schools that are located in larger towns.

9.2 Stakeholder Analysis and Consultations

Project surveys and community participatory consultations were carried out in preparing the poverty and social strategy. This provided an understanding of the concerns and constraints facing communities, farmers and gave people the opportunity to express transport related concerns and opinions of both positive and negative impacts arising from the project. In total 393 local residents living in the project area were surveyed. According to local residents, increased job opportunities and economic development in the area were clearly seen as the most important economic benefits with 39 percent and 34 percent of respondents selecting these respectively. Overall, 62 percent all respondents stated that the improved road would make traveling easier and faster travel and many thought better roads would improve land values. Farmers had a keen understanding of the direct link between transport costs and farm profit margins and expected lower freight costs and improved access to benefit them directly. People also placed a good degree of emphasis on a cleaner environment with less dust. Residents also stated improved roads would provide better access for children traveling to schools and would improve road safety.

The first public consultation meeting to inform communities about the project, including the Resettlement aspects and the HIV/AIDS and Human Trafficking Prevention Plan, was held in January 2009. A series of participatory disclosure and planning workshop will be held to give MPW the opportunity to inform participating communities about project activities and gather community comments and concerns before LARAP studies and civil works begin. Before the alignments are finalized, local government officials and communities will be consulted to minimize losses of high- quality arable land and structures. Provincial and district governments and community organizations will be involved in the implementation of the Resettlement Plan.

9.3 Vulnerable People and Gender Strategy

Indigenous people will benefit from the project. It is not anticipated that indigenous communities will be significantly impacted by resettlement activities; East and West Kalimantan are the provinces least impacted by resettlement activities and projects surveys reveal that traditional indigenous communities are living more than ten km from the existing roads. Nevertheless, resettlement organizations staff will include members of indigenous groups and ensure that communications and

Preparing the Regional Roads Development Project – Final Report 89 Annex 7 Poverty and Social Assessment public consultations are undertaken with respect for appropriate language groups and cultural sensitivity.

Poor women and children will benefit from easier transport, time savings and improved access to medical facilities and other social, and from a general improvement in their quality of life. Women will also benefit from greater access to information and jobs, including migrating women, and increased opportunities for selling and buying goods at local markets. Gender disaggregated indicators will be monitored in the project performance management system.

Gender strategies have been mainstreamed into the Resettlement Plan and the HIV/AIDS and Human Trafficking Prevention Plan (HAHTP). Women are likely to be affected in a number of ways by the project resettlement activity. The RF includes a gender strategy; the socio-economic profile of APs will disaggregate available data by gender; the first three RPs included a gender analysis and data; and RPs will ensure gender-sensitive resettlement and rehabilitation measures that ensure women are actively engaged in the planning and implementation of the resettlement plans, income restoration programs and other programs. The MPW the IMO should be directly involved in all aspects of the development and implementation of the gender strategy, to ensure that these measures are adequate and satisfactory to female APs and other stakeholders.

The HAHTP will also provide specific activities and benefits for women and will take gender differences into consideration, including differences in men’s and women’s duties and work schedules.

9.4 Mitigating Measures

9.4.1 Resettlement Planning

A Resettlement Framework has been prepared (provided in a separate project document) and three Resettlement Plans have been drafted and presented to government. The project will ensure adequate compensation for affected people which will give special consideration for vulnerable people include the elderly, disabled, households headed by women, extremely poor households, and indigenous people. Therefore, RPs will include gender activities and resettlement organizations will ensure that communications and public consultations are undertaken with respect for appropriate language groups and cultural sensitivity.

9.4.2 HIV/AIDS and Human Trafficking Prevention Plan

An HIV/AIDS and Human Trafficking Prevention Plan (HATPP) is required to ensure that communities are not subject to increased risk of sexually transmitted infections and human trafficking because of the improved road infrastructure. The HIV/AIDS and Human Trafficking Plan was reviewed in 2010 and the mechanisms, content, major activities are all deemed relevant.

The RRDP HATPP will be implemented in the province of West Java, Central Java, Jogyakarta, East Java, West Kalimantan and East Kalimantan. All HATPP activities will be consistent with Indonesia National HIV/AIDS Strategy and Action Plan and policies to prevent human trafficking. All HATPP activities will support ongoing government prevention programs and will be implemented through the relevant national, provincial, district and sub-district agencies working in the Project area. Therefore, HATPP will not only mitigate potential risks arising from the Project but will help to build capacity throughout stakeholders and partners. The mitigating measures will take two forms:

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• A specific HIV/AIDS and Human Trafficking Prevention Plan financed under the loan will be included. This prevention Plan will be consistent with prevention policies of Indonesia and ADB’s social development policies and will target construction workers and resident populations in the Project area. • The need for information, education, and communication on HIV/AIDS and STIs and the prevention of trafficking will be made a contractual obligation of the construction contractors. This obligation will include the provision of HIV/AIDS and Human Trafficking awareness training to construction workers and full cooperation with Project and local prevention activities.

It is recommended that implement of the prevention plan is undertaken through cooperation with Indonesia's National AIDS Committee (NAC) and Provincial AIDS Committees (PACs). These agencies would take the lead roles to plan, coordinate, monitor and report activities in each province.

9.4.3 Labor

MPW will ensure that project construction contracts include clauses to encourage local employment for construction and maintenance. MPW will ensure that employment opportunities are announced to local communities and will also ensure that contractors conform with appropriate labor laws are standards. MPW will monitor the use of local labor and appropriate labor laws and standards within the first 3 months of the commencement of each construction contract and take appropriate action were necessary.

Contract documents will include clauses, prohibiting child labor for construction and maintenance activities, ensuring equal pay for men and women for work of equal value, and requiring a timely payment for workers on a monthly basis

9.4.4 Protection of Communities from Construction Disturbances

MPW will ensure that construction contracts contain clauses to prohibit night time construction, ensure the restoration of damaged to irrigation and drainage systems caused be construction activity and the building of pedestrian crossing, over/under passes and culverts. Construction contracts should contain penalty clauses for contractors that pollute surface drinking water or leave damage or debris behind.

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Appendix 1 Selected Meetings and Discussion Groups Date People Met Photos Summary of consultations August 15. Ms. Jany Agustin, Chief, SDEA, Introduction meeting between social team and 2008 Binamarga Binamarga. Ms. S. Nurmala. Asst. Director – Discussion of Social and Resettlement issues with West, SDEA, Binamarga Binamarga chief of social. Ms. Subaiha Kipli, Asst. Chief – East, SDEA, Binamarga

Aug 25, 2008 Village of Karyasari - Communities that live in Cibalong district from groundwater (well) because water clean utility that provided by local government not yet reach out their region. - Although groundwater quality will belong to good but volume in dry season reduce experience even drought.

Aug 26, 2008 Mr. Agus Saepuding, Head of Road development plan of south West Java Subdistrict, Cibalong province especially in Garut regency in general known by Community but road development that funded by ADB , the community not yet known. - The Local government and community that live on alongside of the roadlink in general support this plan activity because : • Access of transportation more Easy. • Development acceleration of their region. • Increasing of economic growth their region because : this region rich of mineral /mining, potential of tourism location, potential nature

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very attractive. • Ease market agricultural produces. Ease transportation access generate their solicitude about environment troubleshoot : • Ease of transportation access / activity investment trigger mining

Aug 26, 2008 Village of Sindangkerta Support of local people for the proposed project Public do not know about the ADB project. Public very happy to the current project and they expected for a whole of existing road should be better soon, covered a whole link between Pangandaran - Pelabuhan Ratu. The awareness of the public about project is related to the land acquisition especially on the prize of the land. People willing to give their land as long as the prize of the land is rational. It is expected the project will make prioritized for using local labour /worker. Aug 27, 2008 Meeting in P2JJ Social Program have been conducted in this area Dr. Fajar, Asst. Project Officer, such RASKIN/ cheap Rice, and BLT/Cash support. RRDP Project, Binamarga Mr Salik asst P2JJ, Mr Dadi Iskandar staf Dinas Social, Mr Priatna BPN, Mr Venkata, Ms Peggy and Mr Darmawan Team Consultant RRDP.

August 27, Mr. Setvogunadi, Deputy Head, Environmental Assessment, Management and 2008 BPLHD (Badan Pengendalian Monitoring plants in West Java. Lingkungan Hidup Daerah) Wawan, Head of AMDAL and Ary staff evaluation in AMDAL

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Sep 2, 2008 Ms. Jany Agustin Follow up meeting between RRDP social team and Ms. S. Nurmala Asst. Director – Binimarga Ms. Jany Agustin, Chief, SDEA, West, SDEA, Binamarga Binamarga Ms. Ririn, PMU, ENRIP Project, Binamarga Mr. Rezar, PMU, RR2P Project, Binamarga Mr. Didik, Project Officer, RRDP Project, Binamarga Oktober 13, Ms Nurmala Simanjuntak Asst. Planning RRDP project and Planning Road in 2008 Director – West, SDEA, Binamarga. Border West Kalimantan. Discussion of ethnic Mr Rusnawi Ka. Bid. Fisik minority issues. Pelaksanaan in Bapeda West Kalimantan. Ms Aqua Rita Staff Bina Program in DGH, Mr Dasmir Good and Mr Ginting Konsultan RRDP Project.

Oktober 13, In the office Dinas Sosial West Dasmir Good RRDP Indigenous People Specialist 2008 Kalimantan meeting in West Kalimantan. Discussion of ethnic minority issues.

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Oktober 14, Sinkawang, W Kalminatan Dasmir Good RRDP Indigenous People Specialist 2008 meeting in West Kalimantan with Focus Group issues.

Oktober 14, Dasmir Good RRDP Indigenous People Specialist 2008 meeting in West Kalimantan with Head of Social Agency. Discussion of ethnic minority issues.

Oktober 14, Ir. H. Burhanuddin A. Rasyid Bupati Road Structure in Sambas-Aruk and Urgent Road 2008 West Kalimantan, Mr Yusran A. Ka Sambas development of the LNG an industrial in PU Kab. Sambas, Ka Bapeda Kab. Paloh Sambas, RRDP Team.

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Oct 15, 2008 Aruk, West Kalimantan Dasmir Good RRDP Indigenous People Specialist meeting in West Kalimantan. With Head of Aruk village to discuss ethnic minority issues.

Oct 15 2008 Sambas- Aruk Typical Ethnic minority housing

October 14 Sambas Dasmir Good RRDP Indigenous People Specialist meeting in West Kalimantan with head of Sambas Regency

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Oktober 18, Paulus uslim Camat Balai Meeting with Indigenous People to discuss attitude 2008 Kabupaten Sanggau, Head of for road development. village and people in Sasok-Tayan road.

Oct 2008 Existing condition of Settlement of Indigenous People (Ethnic Dayak Subah ) in relocation location in near road link Tayan – Pontianak, Tayan Hilir Sub District, Sanggau District .

Nov 18 Sambas Discussion with local fish distributor about road improvement impact on his business

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Nov 18 Sambas Discussion with local fruit distributor about road improvement impact on his business

Oct 28, 2008 Social team in Java Interview with farmer in location (Banjareja village, Tanjungsari, Gunung Kidul District)

Oct 28, 2008 Social team in Java Interview with business car transport driver, Karanganyar Village, Pacitan District

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Oct, 2008 Social team in Java Economic potential fish (Tuna) in Fish Market Sendang Biru, Sumbermanjing SubDistrict, Malang District

November Mrs Rumiyati Store owner Respondent has known about road development 15, 2008 Jl. Raya A. Yani - Adipala plan of southern Trans Java at regency Cilacap from community information, but location of road development not at road link where does she live. Basically , respondent not objection when the project be carried out at where has she lived ,provided give benefit towards region development and can increase society income. There is no problem with existing road Respondent aggress when project is carried out at the area provided given proper compensation when has been carried out land acquisition. November Mrs. Rukhiyah Food store owner Respondent has heard about road development 15, 2008 Jl. A. Yani plan southern trans Java , but not at location of Adipala this road link. Respondent hopes project plant not at location this road link, because in the event road widening will be to be to decrease towards the effort place and when land acquisition, she asks proper compensation.

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November Mr. Sarjian Respondent has known about road development 15, 2008 Sand Miner plan of southern trans Java, that can development on Sentolo acceleration oof this region river He very support the proposed project, especially using material of the project from this area.

November Mr. Karyadi ( local people in Adipla- Forest found beside roadlink is Gunung Selok, and 15, 2008 ayah road existence also activity plan /road widening not affected towards existence of Gunung Selok because distance between Gunung Selok and road existing more than 500m

November Soeratimo Follow the respondent function of Gunung Selok 15, 2008 Security of not protected forest or conservation forest Gunung Selok but used as hindu people religious service place and buddha, because at foothills found hindu class religious service place, while at hilltop found buddha class religious service place

November Mr. Sarmidi Head of Pagubugan Respondents have known road development of 15, 2008 Kulon- southern trans Java at their area, even some years Binangun Village – in Cilacap ago get notification from local government to turn regency and Staff on pole at commentary found beside road and move commentary at location rather far from existing road location. Respondents very support for the proposed project. Main issue regarding the project is land acquisition activity that make communities. Will look for truth this matter information and about project plan certainty.

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November Abdul Malik The Respondent has not known about plan of 15, 2008 (owner furniture Store) Southern Trans Java in her location Petanahan Village – The awareness of the public about project is Cilacap Regency related to the land acquisition especially on the prize of the land. The respondent not agree about the proposed project. If there are land acquisition, because he will losses place for effort/ business.

November Mr. Samijan Owner Rice filed The Respondent has known about plan of 15, 2008 at Karang Bolong. Southern Trans Java Road but not at this road link. Respondent hope road development at this area because follows his opinion is easier land acquisition process is carried out from in at other location. He very support about the proposed project, although will reduce rice field area. Main issues is indistinctness hits project location and when will project be carried out causing diverse perception from communities. November S. Budi H and Nuryanto Traffic The respondents very support for the proposed 16, 2008 Police project, mainly to prevention traffic jam and In Link Galur - Congot transportation smoothes. Respondent will have a notion that project that proposed can decrease traffic accident with repair system transportation but more important vehicle driver discipline in obey traffic fringe

November Mr. Hermawan, Owner material The Respondent has known about plan of road 16, 2008 building Store. development Mugil Village, Panjatan – Kulon of Southern Java Corridor at Kulonprogo regency , Progo but follow the respondent the location of project plan not at roadlink where he live. Uncertainty hits project location and when is project carried out especially land acquisition activity existence evoke perception various from respondent Following the respondent no critical issue or concern by local people regarding the project because the location of the project not yet clear. Following the respondent no critical issue or concern by local people regarding the project

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because the location of the project not yet clear. November Mr. Sarmidi Respondent very will support project plan existence 18, 2008 Gate operator of but follow project location the erudition not at Samas dam location this roadlink and will follow unnecessary Srigading village – Sanden Bantul the opinion solicitude existence about impact that is caused by project because will give benefit towards traffic. The activity of road development not affected towards dam condition that irrigate about 1500 ha rice field and 1 ha fishpond. Respondent very support for the proposed project The Respondent not answered toward this question. November Bp Yono Workers in fishpond to The fishpond name of PT Indokor Bangun Desa 18, 2008 Waru Village there is light road 8 pond and reservoir ± 3 km from right the road.

November Mr. Nanang Owner food Store at For roadlink Giriwoyo - Glonggong community has 22, 2008 Giriwoyo Village –Wonogiri supported project activity, this matter visible entire In Link Giriwoyo-Glonggong roadlink has been released by local government, even construction for road segment that abut on Pacitan regency East Java province has been finished with ROW 24 m, 2 line and width of pavement 7 m.

November Mr. Rudi in Giritontro village, Although road development project plan at rodlink 22, 2008 Wonogiri Regency. Giriwoyo - Duwet known by respondent but follow In link Giriwoyo-Duwet respondent at uncommitted the area land acquisition activity , although in the early roadlink done pole installing row 24 m The respondent support about proposed project with proper land price.

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Nov 17, 2008 Mr Parlan Direct Executive NGO - Main issue from impact Land acquisition for /WALHI and Nanang NGO /WALHI activity the community (Price from land), in Jogyakarta - The road link from the karts area - The NGO’S Not environment aspect - The development of road causes change of land use.

Nov 17, 2008 Mr Sarjuni, ST Head of Komisi For the province, AMDAL of Southern Trans Road Amdal were conducted at 3 (there) regencies that Mr. Rizki Dzultoni staff AMDAL covered; Kulon Progo, Bantul and Gunung Kidul Mr Cahyadi Imran Staf Bag. TAS Regency. BAPEDALDA Jogyakarta The Road link that proposed by RRDP project including in AMDAL, except Yogyakarta- Parangtritis link. AMDAL for Southern Trans Road has approval by Governor Yogyakarta Special Region accordingn to Governor Decree No. 29/KEP/2007. Approval of Amdal given after pass consultations process that institution, community that hit impact, NGO. Consultation execution is done at the time of socialization of activity plan, evaluation of term of reference AMDAL, evaluation draft of ANDAL, RKL and RPL document. Number of member of AMDAL Technical Team that have Amdal Certificate A,B,C 30 person. Main issue of environmental aspect on conduct AMDAL study that is : - Land Acquisition - Disturbance of Karst condition in Gunung Kidul Regency that related with surface water and river under ground existence. - Decreasing of air quality and increasing of noise level.

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Nov 17, 2008 Mr Misno Head Planing engineer, For Southern Trans road at Jogyakarta Province Mr Agus Handoyo Dinas PU activity land acquisition has conducted in Gunung Jogyakarta Kidul Regency. Detail EngineeringDesaign (DED) has prepared by Bina Marga Agency on 2005 For prevention Karst damage in Gunung Kidul Regency, Bina Marga Agency not road development from new alignment but use existing road.

Nov 19, 2008 Mr Joko Surjono Dinas PU In Central Java

November Mr Joko Purwanto Ka. Satker Fisik 20, 2008 Dinas PU in East Java

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November Mrs Diah Susilowati Ketua Komisi 20, 2008 Amdal in Bapedalda/BPLH East Java Province

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Appendix 2

DAFTAR PERTANYAAN (QUESTIONNAIRE) 1.

Nama Provinsi Kabupaten/kota Kecamatan lokasi 1.a ………………………………………………… 1.b ….……………………………………………………… 1.c ……………………………………………………………. Ruas jalan Desa/Kelurahan 1.d ………………………………………………… 1.e ………………………………………………………….

2. proyek ruas jalan ini jika tidak, berapa km jaraknya dengan proyek jalan ini? Apakah rumah tinggal anda berada pada: 2.1.a < 1 km 2.1.b > 1 km 2.1.c 3.

Tanah yang dimiliki saat ini: rumah tinggal (pekarangan) non pertanian pertanian

< 60 m2 < 100 m2 < 2.500 m2 3.1.a 3.2.a 3.3.a

Luas > 60 m2 > 100 m2 > 2.500 m2 3.1.b 3.2.b 3.3.b

Status tanah sertifikat 3.1.c sertifikat 3.2.c sertifikat 3.3.c

Girik 3.1.d Girik 3.2.d Girik 3.3.d Adat 3.1.e Adat 3.2.e Adat 3.3.e Tnh negara 3.1.f Tnh negara 3.2.f Tnh negara 3.3.f Hak milik 3.1.g Hak milik 3.2.g Hak milik 3.3.g HGB 3.1.h HGB 3.2.h HGB 3.3.h Jika bersertifikat, status hak HGU 3.1.i HGU 3.2.i HGU 3.3.i Hak pakai 3.1.j Hak pakai 3.2.j Hak pakai 3.3.j

4. Seberapa sering anda menggunakan jalan Setiap hari 4.a Beberapa kali sebulan 4.c

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ini ? Beberapa kali seminggu 4.b Kurang dari sekali sebulan 4.d

5. Apa alasan anda/keluarga menggunakan kerja non pertanian pergi ke lahan pertanian sekolah pasar/puskesmas jalan ini? 5.a 5.b 5.c 5.d

6. Apakah keluarga anda menghasilkan padi sayuran/buah tanaman tahunan ternak ikan industri kecil produksi untuk dijual? (jika tidak langsung no 10 6.a 6.b 6.c 6.d 6.e 6.f

7.

Kemana anda paling sering menjual hasil Pasar terdekat Pasar local < 5 km Pasar local > 5 km produksi tersebut? 7.a 7.b 7.c

8. dapat menjual produksi dengan ongkos transpor lebih murah harga jual pada pedagang lainnya …. Jika anda menjual produksi di pasar harga wajar pengumpul rendah terdekat, kenapa ? 8.a 8.b 8.c 8.d

9. mobil pribadi / Jenis angkutan umum apa yang sepeda sepeda motor angkutan desa travel bus kecil bus besar truk kecil truk sedang beroperasi (ada) pada jalan ini ? (kota) 9.a 9.b 9.c 9.d 9.e 9.f 9.g 9.h

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10. Jenis moda transport yang biasa anda/keluarga gunakan:

pergi jarak dekat pergi ke ibukota pergi ke ibukota Moda transport pergi ke tempat kerja pergi ke sekolah pergi ke pasar/puskesmas dari rumah kabupaten provinsi sepeda 10.1.a 10.2.a 10.3.a 10.4.a 10.5.a 10.6.a sepeda motor 10.1.b 10.2.b 10.3.b 10.4.b 10.5.b 10.6.b Mobil pribadi/ 10.1.c 10.2.c 10.3.c 10.4.c 10.5.c 10.6.c angkutan kota (desa) travel 10.1.d 10.2.d 10.3.d 10.4.d 10.5.d 10.6.d bus kecil 10.1.e 10.2.e 10.3.e 10.4.e 10.5.e 10.6.e bus besar 10.1.f 10.2.f 10.3.f 10.4.f 10.5.f 10.6.f truk ringan 10.1.g 10.2.g 10.3.g 10.4.g 10.5.g 10.6.g truk sedang 10.1.h 10.2.h 10.3.h 10.4.h 10.5.h 10.6.h

11. Jenis kendaraan yang anda miliki dan peruntukkannya :

Digunakan untuk angkutan penumpang angkutan barang

Jenis kendaraan angkutan penumpang angkutan barang < 25% > 25% < 25% > 25% sepeda 11.1.a 11.2.a 11.3.a 11.4.a 11.5.a 11.6.a sepeda motor 11.1.b 11.2.b 11.3.b 11.4.b 11.5.b 11.6.b Mobil pribadi/ 11.1.c 11.2.c 11.3.c 11.4.c 11.5.c 11.6.c angkutan kota (desa) travel 11.1.d 11.2.d 11.3.d 11.4.d 11.5.d 11.6.d bus kecil 11.1.e 11.2.e 11.3.e 11.4.e 11.5.e 11.6.e bus besar 11.1.f 11.2.f 11.3.f 11.4.f 11.5.f 11.6.f truk ringan 11.1.g 11.2.g 11.3.g 11.4.g 11.5.g 11.6.g truk berat 11.1.h 11.2.h 11.3.h 11.4.h 115.h 11.6.h

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12. Laki-laki perempuan Umur (thn) Hubungan dengan KK: < 25 25-40 > 40 1: KK, 2: suami/isteri, 3: Jenis kelamin lainnya………. 12.a 12.b 12.c 12.d 12.e 12.f 12.g 12.h

13. Suku bangsa, sebutkan ………………………………………………………………………………………… 13.

14. dewasa < 15 tahun Masih sekolah Jumlah anggota keluarga 2 14.1.a 2 14.2.a 2 14.3.a > 2 14.1.b > 2 14.2.b > 2 14.3.b

15. Berapa orang yang memiliki penghasilan dalam rumah tangga ini ? 1 orang 15.a 2 orang 15.b 3 orang 15.c 4 orang 15.d

16. Berapa kira-kira pengeluaran per orang per bulan dalam rumah tangga ini ? Rp. per bulan < 100.000 16.a 100.000 – 170.000 16.b 170.000 – 200.000 16.c > 200.000 16.d

17.

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Sumber pendapatan utama keluarga ini dari kegiatan: 1). sumber utama 2). sumber kedua (penunjang) upah non pertanian 17.a pemilik hasil ternak 17.d kerajinan 17.g upah buruh pertanian 17.b pemilik hasil ikan 17.e kiriman uang 17.h pemilik hasil beras 17.c dagang 17.f lainnya 17.i

18. 19. Apakah kondisi jalan yang ada sekarang telah memenuhi kebutuhan anda? Apakah pernah perjalanan ditunda atau dibatalkan dikarenakan kondisi jalan yang jelek (terutama karena cuaca)? ya (sudah) 18.a ya (pernah) 19.a tidak (belum) 18.b tidak (belum) 19.b

20. Menurut anda, manfaat terpenting dari adanya perbaikan (pembangunan) jalan ini ? isi dengan: 1 = manfaat utama, 2 = manfaat kedua. lebih mudah dan cepat untuk pergerakan transportasi pada umumnya 20.a mengurangi kerusakan kendaraan 20.e memperbaiki akses menuju ke pelayanan sosial 20.b debu berkurang 20.f memperbaiki akses menuju ke sekolah 20.c waktu tempuh lebih singkat 20.g biaya transpor rendah 20.d lainnya ……………………………………………………… 20.h 21. Menurut anda, manfaat ekonomi terpenting dari adanya perbaikan (pembangunan) jalan ini? isi dengan: 1 = manfaat utama, 2 = manfaat kedua. memperbaiki akses jalan ke pasar untuk jual beli barang 21.a meningkatkan nilai tanah 21.d pertumbuhan ekonomi lokal 21.b meningkatkan pelayanan angkutan (tambah bus) 21.e peluang usaha baru 21.c lainnya ……………….. 21.f 22. Menurut anda, yang terpenting dari adanya perbaikan (pembangunan) jalan ini akan berdampak negatif pada ? isi dengan: 1 = signifikan, 2 = kurang signifikan. gangguan selama konstruksi jalan 22.a Kehilangan tanah/rumah 22.d debu dan bising 22.b Meningkatkan kriminalitas 22.e kecelakaan lalu lintas 22.c 22.f

23. 23.1). Tipe bangunan rumah tinggal anda permanen 23.1.a listrik 23.1.d

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Semi perm 23.1.b PAM 23.1.e Non perm 23.1.c Air sumur 23.1.f Air sungai 23.1.g

Luas Status kepemilikan Lama tinggal < 36 m2 23.2.a sendiri 23.2.a < 5 tahun 23.3.a

2 23.2). Bangunan rumah tinggal anda: > 36 m 23.2.b Org tua/saudara 23.2.b > 5 tahun 23.3.b Instansi pemerintah 23.2.c sewa 23.2.d

24. ya (sudah) 24.1.a Apakah anda pernah mendengar HIV/AIDS ? tidak (belum) 24.1.b

televisi 24.2.a teman 24.2.d Jika pernah mendengar, dari mana informasi itu anda peroleh? radio 24.2.b petugas kesehatan 24.2.e poster 24.2.c lainnya 24.2.f

25. Bagaimana penyebaran HIV/AIDS ? Transfuse darah 25.a Hubungan seks 25.b Jarum suntik 25.c

26. Bagaimana cara penanggulangan penyebaran HIV/AIDS ? penyuluhan 26.a Program kondomisasi 26.b ……………… 26.c

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Appendix 3

Indigenous Peoples Impact Categorization Form

West Kalimantan A. Project Data

Country/ Project Title: ADB TA-7085 INO Indonesia/Regional Road Development Project

Department/ Division: Public Works Processing Stage: PPTA

Lending X Project Loan Financial Intermediation Loan or Equity Investment Modality: 33 Program Loan Emergency Loan

Sector Loan SDP Loan

Categorization Status: New X Re-classification Previous Category

B. Identification of indigenous peoples in project area Impac on Indigenous t Not Yes No Remarks of identified problems, if any peoples (IPs)/ethnic know minority (EM) X Field investigations revealed that IP communities are located more than 10 km from the link roads in West Kalimantan.

Sinkawang to Sambas From Sinkawang to Sambas the road is paved, average width of 4.6m with water canals running along each side. This is mostly built up area with housing continuous along these links but all are located on the outside of the canals with small bridges connecting then to the road. Widening will not affect housing except possibly in more urban areas. People of indigenous heritage are intermixed but effectively indistinguishable from non-indigenous people.

Galing to Aruk Are there IPs or EM The first sections of these links are cement and bitumen groups present in project for about 21km. Further along road conditions locations? progressively worsen from packed gravel to near impassible (although there is single bus service). The area is rural, mostly forested. Indigenous people live in these districts but their communities are located far from the road. - In Galing, IP live in the villages of Tempapan Hulu (population 1,092) and Sago (population 893) but these are more than 10 km from the Project roads. They represents about 12% of the total population of the sub- district, hence, very low density. - In Sajingan Besar sub-district , IP live in the villages of Keliau (population 613), Subanga (population 541) and Sabung (population 637) but these villages are more than 10 km from the Project roads.

Tayan – Entikong These links comprise West Kalimantan's main highway to

33 Applies to program loans with investment components.

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the boarder with Malaysia. The majority of the road is paved, 6m width, with small settlements and but mainly forest areas. It passes through Tayan Hilir, Balai, Tayan Hulu, Kembayan, Beduai, Sekayam and Entikong Sub District (SD), Sanggau District. IP were not found living along the road. - In Tayan Hilir SD, IP live in the village of Dayask Toba (249 households) - In Sekayam SD, Dayak Iban people (169 households) live in the three small settlements of Malenggang-1, Malenggang-2 and Sungai tekam. - In Entikong sub-district, Dayak Sontas and Dayak Iban (175 households) among other IP (200 households) live in the villages of n Srh tembawang, Andar sontas, and Entikong. All of these villages are more than 10km from the road.

Dayak communities living within 10 km of the road link plant rice and durian fruit and no longer hunt as they did in the past. Rice plantation areas are mainly communally owned and located far from the road. Residential and other land directly along the road is privately owned. Although rice cultivation areas shift from season to season, the Dayak people in the area are no longer nomadic. They live in permanent housing.

Dayak people along the road do not live as exclusive groups but have long been intermixed with non- indigenous people. Nevertheless, Dayak people maintain Do they maintain many customs and apply traditional laws in many distinctive customs or situations. They believe this helps to maintain good economic activities that community relationships will all groups and does not X may make them make them vulnerable. vulnerable to hardship? The investigation and consultations found that in these 9 villages with IP communities - IP do not live in small, isolated, exclusive or homogeneous groups and are not living in a remote forest area (depend on nature environmental only) - although the influence of custom remains strong their social institution are not informal and they share many formal social institutions are shared with non-indigenous people - economic activities of indigenous people are similar to their non-indigenous neighbours - i.e. farming. - They have access to services and political activity;

The Dayak community will benefit from the road improvements. The project will not restrict economic and social activity or make IP particularly vulnerable. Dayak Will the project restrict people, along with the non-indigenous communities their economic and social believe the road project will bring great benefits for activity and make them economic development. They also believe that a better X particularly vulnerable in road will help in transporting agricultural goods more the context of project? easily and with less cost and make travel to other villages and into town easier overall. IP living along near by rivers have petitioned the government to move them to the road once it is built to avoid flooding and improve their living conditions.

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The project road has been in existence for many years, albeit in poor condition in many sections, and improving it will not change cultural integrity of the Dayak community Will the project change significantly but has good potential to improve their their socioeconomic and X socioeconomic status. They have maintained their cultural integrity? culture while living along the road with other groups for

many years. IP believe that Improving the road will provide better access to market and improve human relationship with other social group.

Possibly during construction but not in ways different from Will the project disrupt the non-indigenous populations. No significant land their community life? X acquisition or involuntary resettlement is anticipated along

this link road.

Will the project positively X The improved road will enhance accessibility for social, affect their health, economic, health and other purposes.Yes, the road will education, livelihood or allow easier access to health and education facilities. The social security status? project will create new employment as the number of shop, store and restaurant in the area increase. Will the project negatively An HIV/AIDS and Human Trafficking Prevention Plan is affect their health, recommended for the Project and Dayak people, along education, livelihood or X with other groups (poor, women, mobile population, CSW social security status? and drug users), will be targeted for Plan activities.

Will the project aftect or Dayak ethnic as IP or not, have custom law to manage undermine the recognition their community as well. Custom law also can over come of their knowledge, X conflict among them as well. They consistence to preclude customary continue their culture and socio system to their behaviors or undermine community customary institutions? In case no disruption of indigenous community life as a whole, will there be loss of housing, strip of No significant land acquisition or involuntary resettlement land, crops, trees and X is anticipated along in West Kalimantan. other fixed assets owned or controlled by individual indigenous households?

C. Anticipated project impacts on indigenous peoples

Project activity and output Anticipated positive effect Anticipated negative effect 1. Land acquisition Don’t needed Don’t needed 2. Road construction Potential for a) construction Potential for increased risks of work for local people, b) HIV/Aids, social disruption, supply of goods/services for etc., due to presence of construction. Conduct public construction labor force from campaign for community other region. To over come affected impact by road negative impact, conducted development public campaign for community affected impact by road development 3. Improved road Increased accessibility to a) Potential for increased risks benefit social and economic of HIV/Ais, trafficking condition in project area b) Potential for influx of new population.

D. Decision on Categorization

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After reviewing the answer above, the Mission Leader and Social Development Specialist agree that the project:

Should be categorized as an A project, an Indigenous Peoples Development Plan (IPDP) is required or, for sector/FI projects, an Indigenous Peoples Development Framework (IPDF) is required

Should be categorized as a B project, a specific action favorable to indigenous peoples/ethnic minority is required and addressed through a specific provision in RRP and in related plans such as a Gender Action Plan and a general Community Participatory Plan

X Should be categorized as a C project, no IPDP/IPDF or specific action required

Project Team Comments:

RSES Comments:

Proposed by: Reviewed by:

Project Team Leader, Division Social Development Specialist, RSES Date: Date:

Endorsed by:

RD Social Development Specialist Date: Director, RSES Date:

Endorsed by: Approved by:

Director, Division Chief Compliance Officer Date: Date

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Indigenous Peoples Impact Categorization Form

East Kalimantan

A. Project Data

Country/ Project Title: ADB TA-7085 INO Indonesia/Regional Road Development Project

Department/ Division: Public Works Processing Stage: PPTA

Lending X Project Loan Financial Intermediation Loan or Equity Modality: Investment

Program Emergency Loan Loan34

Sector Loan SDP Loan

Categorization Status: New X Re-classification Previous Category

B. Identification of indigenous peoples in project area Impact on Indigenous Not peoples (IPs)/ethnic Yes No Remarks of identified problems, if any know minority (EM) X Field investigations revealed that IP communities are living in 9 villages in this Project area in the Bulangan and Nunukan Districts.

Demographic data for these 9 villages is as follows:

In Bulungan District, the Dayak and Sub-Dayak groups of Kenyah, Brusu and Tidung live in 3 villages along the road: - Pimping Village: 433 household, 1.746 population and 9 % are poor households. Their main economic activity is rice agriculture. - Sekatak Puji village has 579 household, 2.311 population and 15.9 % are poor households. Their main economic activity is agriculture. - Kelembunan Village has 73 household, 268 population Are there IPs or EM and 76.7 % are poor household. Their main economic groups present in project activity is agriculture. locations?

In Numukan Distrct, Dayak the sub-Dayak groups of Dayak Ngabang, Putuk and Tenggalan in along the Project roads. - Pulau Keras Village has 45 household, 266 population and 48,9 % consist of poor household; their main economic activity are agriculture. - Lubok Buat village has 78 household and 542 population; - Melasu Baru village has 55 household and 280 population; - Kunyit village has 114 household and 487 population; Kekayap village have 73 household and 316 population and - Apas village has 485 household and 2187 population.

Lubok Buat, Melasu Baru, Kunyit, Kekayap and Apas are

34 Applies to program loans with investment components.

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poor villages with 100 % from all household below the poverty line. Their economic activities are in agriculture sector. Dayak communities living within 10 km of the road link plant rice and durian fruit and no longer hunt as they did in the past. Rice plantation areas are mainly communally owned and located far from the road. Residential and other land directly along the road is privately owned. Although rice cultivation areas shift from season to season, the Dayak people in the area are no longer nomadic. They live in permanent housing.

Dayak people along the road do not live as exclusive groups but have long been intermixed with non- indigenous people. Nevertheless, Dayak people maintain Do they maintain many customs and apply traditional laws in many distinctive customs or situations. They believe this helps to maintain good economic activities that community relationships will all groups and does not X may make them make them vulnerable. vulnerable to hardship? The investigation and consultations found that in these 9 villages with IP communities - IP do not live in small, isolated, exclusive or homogeneous groups and are not living in a remote forest area (depend on nature environmental only) - although the influence of custom remains strong their social institution are not informal and they share many formal social institutions are shared with non-indigenous people - economic activities of indigenous people are similar to their non-indigenous neighbours - i.e. farming. - They have access to services and political activity;

The Dayak community will benefit from the road improvements. The project will not restrict economic and social activity or make IP particularly vulnerable. Dayak Will the project restrict people, along with the non-indigenous communities their economic and social believe the road project will bring great benefits for activity and make them economic development. They also believe that a better X particularly vulnerable in road will help in transporting agricultural goods more the context of project? easily and with less cost and make travel to other villages and into town easier overall. IP living along near by rivers have petitioned the government to move them to the road once it is built to avoid flooding and improve their living conditions. The project road has been in existence for many years, albeit in poor condition in many sections, and improving it will not change cultural integrity of the Dayak community Will the project change significantly but has good potential to improve their their socioeconomic and X socioeconomic status. They have maintained their cultural integrity? culture while living along the road with other groups for

many years. IP believe that Improving the road will provide better access to market and improve human relationship with other social group.

Possibly during construction but not in ways different from Will the project disrupt the non-indigenous populations. No significant land their community life? X acquisition or involuntary resettlement is anticipated along

this link road.

Will the project positively X The improved road will enhance accessibility for social, affect their health, economic, health and other purposes.Yes, the road will education, livelihood or allow easier access to health and education facilities. The social security status? project will create new employment as the number of shop, store and restaurant in the area increase. Will the project negatively An HIV/AIDS and Human Trafficking Prevention Plan is X affect their health, recommended for the Project and Dayak people, along

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education, livelihood or with other groups (poor, women, mobile population, CSW social security status? and drug users), will be targeted for Plan activities.

Will the project affect or undermine the recognition Dayak people have custom and law to manage their of their knowledge, X community and can overcome conflict as well. The roads preclude customary will not impact on the culture and socio systems. behaviors or undermine customary institutions? In case no disruption of indigenous community life as a whole, will there be loss of housing, strip of No significant land acquisition or involuntary resettlement land, crops, trees and X is anticipated in East Kalimantan. other fixed assets owned or controlled by individual indigenous households?

C. Anticipated project impacts on indigenous peoples

Project activity and output Anticipated positive effect Anticipated negative effect 1. Land acquisition Don’t needed Don’t needed 2. Road construction Potential for a) construction Potential for increased risks of work for local people, b) HIV/Aids, social disruption, supply of goods/services for etc., due to presence of construction. Conduct public construction labor force from campaign for community other region. To over come affected impact by road negative impact, conducted development public campaign for community affected by road development 3. Improved road Increased accessibility to a) Potential for increased risks benefit social and economic of HIV/Ais, trafficking condition in project area b) Potential for influx of new population.

D. Decision on Categorization

After reviewing the answer above, the Mission Leader and Social Development Specialist agree that the project:

Should be categorized as an A project, an Indigenous Peoples Development Plan (IPDP) is required or, for sector/FI projects, an Indigenous Peoples Development Framework (IPDF) is required

Should be categorized as a B project, a specific action favorable to indigenous peoples/ethnic minority is required and addressed through a specific provision in RRP and in related plans such as a Gender Action Plan and a general Community Participatory Plan

X Should be categorized as a C project, no IPDP/IPDF or specific action required

Project Team Comments:

RSES Comments:

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Proposed by: Reviewed by:

Project Team Leader, Division Social Development Specialist, RSES Date: Date:

Endorsed by:

RD Social Development Specialist Date: Director, RSES Date:

Endorsed by: Approved by:

Director, Division Chief Compliance Officer Date: Date

Explanation of IP Impact Categorization

A. Summary of Categorization

The IP categorization depends on the nature and magnitude of the project’s potential positive and negative impact on indigenous peoples, which may result from its location, the type and scale of the project, and sensitivity of indigenous peoples’ issues.

Category A - Indigenous Peoples Development Plan (IPDP) and/or Indigenous Peoples Development Framework (IPDF) is required Category B - Specific action is required, but not within the framework of an IPDP Category C - No impact

B. Definition of Categories

Category A A proposed project is classified as Category A if it is likely to have significant positive or negative impacts on indigenous peoples. An Indigenous Peoples Development Plan (IPDP) and/or Indigenous Peoples Development Framework (IPDF) is required for Category A Project to avoid negative impacts and ensure appropriate benefits. The circumstances where an intervention is considered having a significant impact on indigenous peoples include:

(i) positive or negative effects on their customary rights of use and access to land and natural resources; (ii) positive or negative effects on their socioeconomic and cultural integrity; (iii) positive or negative effect on their health, education, livelihood, and social security status; (iv) impacts that may alter or undermine indigenous knowledge, preclude customary behaviors or undermine customary institutions; (v) project will be located in, or pass through, areas of significant indigenous peoples’ settlement and/or use; and (vi) project proposes to specifically target indigenous peoples in one or more of its main activities; or is anticipated to have significant negative effects on indigenous peoples (Appendix 735).

In terms of community impacts, the impact area may be considerably broader than the immediate area physically affected by a project. Category A applies to project and its impact area where indigenous peoples maintain distinctive customs or economic activities that may make them particularly vulnerable to hardship. It also applies to project that is likely to adversely affect or disrupt community life. A full-blown IPDP should include specific deliverables, budget and schedules.

An IPDF is required for a project if it is financed under sector investment loans, financial intermediary loans, or a credit line or equity investment to a third party, and other ADB-assisted project with multiple sub-projects, which are anticipated to have either positive or negative significant impacts on indigenous peoples but where the nature of the

35 An appendix of the Handbook for Poverty and Social Analysis (ADB. 2001. Handbook on Poverty and Social Analysis. Manila).

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impacts cannot be determined until the sub-projects are prepared or until after the detailed technical/engineering design is completed, or following a process of community consultation.

Other projects that require an IPDF include program, sector development program, and sector loans that are likely to cover an area where indigenous peoples live. An IPDF sets out the indigenous peoples policy together with the screening and planning procedures, which apply to subprojects, components, or investments that are to be approved during loan implementation. An IPDF provides a strategy to ensure that the requirements of the Policy on Indigenous Peoples are met.

Category B

A proposed project is classified as Category B if it will have limited impacts on indigenous peoples or when there is a risk that the project may not bring the intended benefits to the affected indigenous peoples within a specific plan. Specific action in favor of indigenous peoples is required in order to ensure appropriate benefits and mitigate adverse impact, which action is not necessarily within the framework of a full-blown Indigenous Peoples Development Plan. The favorable action does not require specific deliverables, budget and schedules since it can be embedded in project components or dealt with through the Resettlement Action Plan, the general Community Participatory Plan, or any other appropriate means.

Category C

A project is classified as Category C if it is likely to have very minimal or no adverse or significant impact on indigenous peoples. For this category of project, no IPDP or specific action is required although impact on indigenous peoples still needs to be properly reviewed.

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Appendix 4

Project Benefit Monitoring Tables

DESIGN AND MONITORING FRAMEWORK

Design & Monitoring Framework

Summary Performance Data Sources/ Reporting Assumptions and Risks Targets/Indicators Mechanisms

Impact

1 Improved and Gross domestic product of Government statistical Transport infrastructure sustainable economic project districts and 'regions' publications by district and investment implemented as growth in the Project increased commodity planned. areas Transport study to discern impact of road capacity expansion and network extension (see "Analysis of Road Impact on Poverty in China" , ADB, 2006)

2 Poverty Reduction in Per capita incomes in Project Government statistical data Transport infrastructure Project areas area will increase an additional publications by district and by investment implemented as 4 % per annum. income and employment group planned.

Baseline: average monthly Transport study to discern Opportunities exist for poor income, Rp. 250,000 impact of road capacity to take advantage road expansion and network improvement benefits Average Poverty incidence in extension (see "Analysis of Road the Project area will be Impact on Poverty in China" , reduced from 19.3 (2007) to ADB, 2006) 15% by 2020

Baseline 2007: Average - 19.3% Kalimantan - 8.8 % Java 19.7 - percent

Outcomes Performance Data Sources/ Reporting Assumptions and Risks Targets/Indicators Mechanisms

1 More efficient and Volume/Capacity Ratio (VCR) Traffic counts, speed surveys, safer transport reduced baseline= .12 travel times/CTC Surveys of systems through Target= .09 Traffic counts and IRMS reduced congestion and improved traffic Volume - Annual Traffic Travel times and costs, public flow Growth increased above transport,/CTC Surveys of normal Transport time and traffic costs baseline= 5.6 Target= 7 Transport infrastructure investment implemented as Average Speed of traffic in Speed estimates - vehicle planned. corresponding hours moving with traffic

increased

Baseline= 36 Target= 48

Average Condition of Road Observation at specified improved Average IRI locations Baseline= 9.6 Target= 3

2 Road Safety Number of serious road Government accident statistical Improved accidents decreased data Improved safety design

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Baseline: Accident reports monitoring by incorporated into fatality rate = 9.9 deaths per CTC construction planning 10,000 registered vehicles Design review, non project designs/DSC review

3 Transport services Public transport services Government statistical data Government allows and facilities will (buses) coverage and service publications by district and increased bus licensing improved (increased frequency increase by 10%. village productivity, Fare regulation allows lower availability and Household and transport surveys operating cost savings and affordability): Baseline: average bus service competition to influence to district center is 2.6 fares and lower fares are buses/day (2007) passed on to passengers

4 Improved income The percentage of villages Government statistical data Economic growth rates earning opportunities with paved roads access publications by district and materialize for the poor increases from 57% to 90% by village 2020 Fare regulation allows lower Economic Household and transport surveys operating cost savings and development and Reduced Bus Fares competition to influence social activities fares and lower fares are increased in the Income from non-farm sector passed on to passengers. project area increase by 30% by 2020 Baseline: Local community 22 % of primary income development (PNPM sourced from Non-Farm sector Mandiri system) continues (2008 project survey) 39% of primary income sourced from Non-Farm sector (2008 project survey)

Average wage/salaries increase by 4% pa. Baseline: Rp 759,999/month (2006)

Number of small businesses grow by 10%

Number of tourists visiting Project areas increase

5 Access and Frequency of visits to nearest Government statistical data Economic growth rates Communications in town markets increase by publications by district and materialize the Project Area 10% village improved Fare regulation allows lower Baseline: Household, market and transport operating cost savings and Frequency of visits to closest surveys competition to influence town markets month (2007) = fares and lower fares are 1.5/month passed on to passengers.

Frequency of visits to district markets = 1.4/month (2007)

Percentage of household expenditure on transport falls by 8% Baseline= 10.4% household expenditure (2007)

6 Capacity of GOI GOI agencies adopt more Institutional Analysis GOI embrace new Agencies to plan, effective and efficient procedures and systems implement and procedures and systems GOI Annual Operations and monitor transport Financial Reporting documents infrastructure project GOI agencies improve improved timeliness of activities

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Financial Management activities will be more transparent and effective

GOI agencies will improve reporting and documentation activities::

GOI agencies will implement ACAP procedures:

Outputs Performance Data Sources/ Reporting Assumptions and Risks Targets/Indicators Mechanisms

Capacity Expansion Sub-projects

1 The project will Tranche 1-2: PIP - data from individual sub- Commitment by GOI implement a specified 852 km of road bettered project progress reports number of sub- Sufficient funding and projects and Km. project/studies progress in timely manner

2 Completion of all All Tranche 1 projects ready PIP - data from individual sub- Commitment by GOI necessary works of for tender: Jan 2010 project progress reports preparation prior to Sufficient funding and the start of project/studies progress in implementation. timely manner

Network Extension sub-projects

3 The project will Tranche 1-2: PIP - data from individual sub- Commitment by GOI implement a specified 491 km of road bettered project progress reports number of sub- Sufficient funding and projects and km. project/studies progress in timely manner

4 Completion of all All Tranche 2 projects ready PIP - data from individual sub- Commitment by GOI necessary works of for tender: Jan 2013 project progress reports preparation prior to Sufficient funding and the start of project/studies progress in implementation. timely manner

5 Training for capacity Training programmes Number of GOI staff trained Quality training delivered building at GOI delivered (on-the-job and Agencies course) provided with the Number of training seminars, Staff have the opportunity to project workshops and courses apply training (training will focus on delivered anti corruption, improve road safety Project Training reports and procurement and financial Trainee evaluation reports management)

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Activities with Milestones Milestones Inputs US$m 1 Procurement in accordance with Tranche 1 tendered ADB 350.0 defined procedures Islamic Bank 150.0 CTC Mobilized Total Donor 500.0 DSC Mobilized GOI 153.7

Tranche 2 Tendered 2 Design and Quality Control Total Project 653.7 activities using defined procedures Tranche 2 designed Project Components Tranche 3 designed Civil Works 505.0

Tranche 3 tendered 3 Financial disbursement in Bridge Trusses 15.0 accordance with PIP FM Reports 4 Land Acquisition for sub-projects Tranche 2 Preparation Land acquisition(1) 5 Resettlement for sub-projects Resettlement(1) and 49.8 Tranche 3 Preparation Goods & Equipment 1.3 Contingencies 104.9 Total Project 653.7 Abbreviations ACAP Anti Corruption Action Plan ADB Asian Development Bank CTC Core Team Consultants DSC Design and Supervision Consultants GOI Government of Indonesia

Baseline Data of the Monitoring Indicators

West Java Province Indicator

Tasikmalaya Garut township Tasikmalaya township township TS PmV HH TS KlgV HH TS CpV HH Distance to township center (km) 84 104 97 Villages with grade IV road access (%) 82 91 91 Village with tap water (%) 20 0 0 Villages with access to telephone (%) 91 82 82 Village with (mini)bus service (%) 73 91 91 Bus frequency to district center (bus 3 2 2 service/day) Fertilizer input (%) - - Number of vehicles 50 15 15 Transport expenses (%) 10 8 8 Frequency of visits to county markets 1 1 1 Frequency of visits to township markets 1 1 1 Frequency of visits of doctors (number - - - per 6 months) Income from non-farm sector (%) 28 28 28 HH selling surplus grain (%) 4 - - HH selling animal product (%) - 4 4 Frequency of visits by agricultural - - - technicians (no per 6 month) Number of new or renovated houses 0 0 0 Number of long-term migrants (greater than 6 month) Rural income (Rp000) per year 5,945 3,239 5,945 3,239 5,94 3,23 5 9

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Rural poverty incidence (%) 23 21 19

Central Java Province Indicator Cilacap township Wonogiri township Kebumen township TS AdV HH TS PltV HH TS ArV HH

Distance to township center (km) 22 38 20 Villages with grade IV road access (%) 100 100 95 Village with tap water (%) 20 15 10 Villages with access to telephone (%) 100 73 60 Village with (mini)bus service (%) 100 100 100 Bus frequency to district center (bus 4 4 4 service/day) Fertilizer input (%) - Number of vehicles 50 30 15 Transport expenses (%) 12 8 8 Frequency of visits to county markets 2 3 2 Frequency of visits to township markets 3 3 2 Frequency of visits of doctors (number - - - per 6 months) Income from non-farm sector (%) 28 28 28 HH selling surplus grain (%) - - - HH selling animal product (%) 4 4 4 Frequency of visits by agricultural - - - technicians (no per 6 month) Number of new or renovated houses 0 0 0 Number of long-term migrants (greater than 6 month) Rural income (Rp000) per year 5,945 3,239 5,945 3,239 5,94 3,23 5 9 Rural poverty incidence (%) 20 27 45 Yogyakarta Province Indicator Kulonprogo township Bantul township Gnkidul township TS JgkV HH TS GdsV HH TS Pwd HH V Distance to township center (km) 15 13 32 Villages with grade IV road access (%) 100 100 100 Village with tap water (%) 0 0 21 Villages with access to telephone (%) 95 95 36 Village with (mini)bus service (%) 68 80 100 Bus frequency to district center (bus 4 2 2 service/day) Fertilizer input (%) Number of vehicles 15 10 10 Transport expenses (%) 8 10 10 Frequency of visits to county markets 1 1 1 Frequency of visits to township markets 1 1 1 Frequency of visits of doctors (number - - - per 6 months) Income from non-farm sector (%) 28 28 28 HH selling surplus grain (%) - - - HH selling animal product (%) 4 4 4 Frequency of visits by agricultural - - - technicians (no per 6 month) Number of new or renovated houses 0 0 0 Number of long-term migrants (greater than 6 month) Rural income (Rp000) per year 5,945 3,239 5,945 3,239 5,94 3,23 5 9 Rural poverty incidence (%) 16 12 24 Source: Project survey and County statistical Yearbooks, 2007 East Java Province Indicator Malang township Trenggalek township Pacitan township TS TbjV HH TS PgV HH TS PnV HH Distance to township center (km) 69 45 18

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Villages with grade IV road access (%) 100 100 92 Village with tap water (%) 47 0 4 Villages with access to telephone (%) 94 100 92 Village with (mini)bus service (%) 50 85 27 Bus frequency to district center (bus 2 2 3 service/day) Fertilizer input (%) Number of vehicles 10 15 40 Transport expenses (%) 12 11 10 Frequency of visits to county markets 1 1 3 Frequency of visits to township markets 1 1 3 Frequency of visits of doctors (number - - - per 6 months) Income from non-farm sector (%) 28 28 28 HH selling surplus grain (%) - - - HH selling animal product (%) 4 4 4 Frequency of visits by agricultural - - - technicians (no per 6 month) Number of new or renovated houses 0 0 0 Number of long-term migrants (greater than 6 month) Rural income (Rp000) per year 5,945 3,239 5,945 3,239 5,94 3,23 5 9 Rural poverty incidence (%) 16 8 29 West Kalm Province Indicator Sambas township Sambas township Sanggau township TS PmkV HH TS RtsV HH TS EntV HH Distance to township center (km) 51 39 99 Villages with grade IV road access (%) 94 94 84 Village with tap water (%) 6 6 12 Villages with access to telephone (%) 72 72 24 Village with (mini)bus service (%) 15 15 15 Bus frequency to district center (bus 2 2 2 service/day) Fertilizer input (%) Number of vehicles 15 15 15 Transport expenses (%) 15 15 12 Frequency of visits to county markets 1 1 1 Frequency of visits to township markets 1 1 1 Frequency of visits of doctors (number - - - per 6 months) Income from non-farm sector (%) 28 28 28 HH selling surplus grain (%) - - - HH selling animal product (%) 4 4 4 Frequency of visits by agricultural - - - technicians (no per 6 month) Number of new or renovated houses 0 0 0 Number of long-term migrants (greater than 6 month) Rural income (Rp000) per year 5,945 3,239 5,9 3,239 5,94 3,23 45 5 9 Rural poverty incidence (%) 22 6 10 East Kalm Province Indicator Bulungan township Malinau township Nunukan township TS TjpV HH TS MlnV HH TS Smg HH V Distance to township center (km) 18 7 7 Villages with grade IV road access (%) 90 90 95 Village with tap water (%) 42 67 40 Villages with access to telephone (%) 42 67 40 Village with (mini)bus service (%) 14 10 10 Bus frequency to district center (bus - - - service/day) Fertilizer input (%) Number of vehicles 15 15 15 Transport expenses (%) 12 12 12

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Frequency of visits to county markets 1 1 1 Frequency of visits to township markets 1 1 1 Frequency of visits of doctors (number - - - per 6 months) Income from non-farm sector (%) 28 28 28 HH selling surplus grain (%) - - - HH selling animal product (%) 4 4 4 Frequency of visits by agricultural - - - technicians (no per 6 month) Number of new or renovated houses 0 0 0 Number of long-term migrants (greater than 6 month) Rural income (Rp000) per year 5,945 3,239 5,945 3,239 5,945 3,23 9 Rural poverty incidence (%) 20 12 12 Source: Project survey and County statistical Yearbooks, 2007

PmV: Pameungpeuk village, KlgV: Kelapagenep village, CpV: Cipatujah village, AdV: Adipala village, PltV: Platarejo village, Ambalresmi village, JgkV: Jangkaran village, GdsV: Gadingsari village, PwdV: Purwodadi village, TbjV: Tambakrejo village, PgV: Prigi village, PnV: Punung village, PmkV: Pemangkat village, RtsV: Ratusepudak village, EntV: Entikong village, TjpV: Tanjungpalas village, MlnV: Malinau village, SmgV: Semanggaris village, TS: Township, HH : Household

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Preparing the Regional Roads Development Project – Final Report 1 Annex 7 Poverty and Social Assessment – Annex 1

TABLE OF CONTENTS

I. INTRODUCTION ...... 1 A Aim of the Report...... 1 B Background ......

II. CONSULTATION PROCESS ...... 2

III. SOCIAL AND ENVIRONMENTAL ISSUES ADDRESSED IN THE MEETING ...... 3

IV. SUMMARY OF THE COMMENTS ...... 4

V. CONCLUSION ...... 5

ANNEXES

Annex A Newspaper Advertisement in Indonesia Language

Annex B Invitation for Public Consultation Meeting

Annex C List of Participants in the Consultation Meeting

Annex D Questionnaire (in Indonesia language)

Annex E Comments of Participants and Response the Consultant in Public Consultation

Annex F Photograph in the event

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I. INTRODUCTION

A. Aim of the Report

The Report has been compiled to document the Public Consultation for road link that enclosed in subcomponent-2 in Preparing the Regional Road Development Project (RRDP) and summarized the discussions and comments from the community that hit impact, NGOs, Provincial and the Kabupaten ( regency) Government official . The Methodology of the consultation process and summarizes the environmental issues addressed and feedback received from participants enclosed in the report.

Documentation of the Public Consultation covers environment and social assessment and social to get conception, suggestion or input from participants to be used upon which deliberation or decision making process. The following format of public consultation process document;

(a) Reference of rule or regulations that used as basement for consultation public execution. (b) The Consultation process, including the consultation plan, and schedule of the event. (c) The Consultation that has taken place, with whom and the purpose; (d) Overview of the Regional Road Development Project, environment and social issue involved. (e) Identification of environmental and social issues in road link of West Kalimantan Corridors. (f) Summary of suggestion or comments received from participants.

B. Background

The Public Consultation and Information Disclosure is part of IEE compiling regulated in ADB Guidelines OM20 – Environmental and Social Considerations that require one Public Consultation for project with B category for during project preparation stage. The Guidelines of public consultation process in GOI rule, regulated in Decree of Head Bapedal No. 08 of 2000 concerning Community Involvement and Information Openness in the Process Environmental Impact Assessment. The Consultant involved of participants representing affected people (community that prediction hit impact), community leaders, NGOs, Provincial and Kabupaten Government (related institution). The Consultation concerning environmental and social assessment is meant to achieve the following;

(a) To evaluate of public response towards the project plan; (b) To make the public aware of road development project; (c) To evaluation the public response toward environmental, social issue and environment impact that caused by activity plan (civil works propose) of road development project. (d) To get input or suggestion from stakeholders about road condition, environment and social issue, works program of road development from Provincial or Kabupaten Government. (e) To ensure a broad range of perspectives are considered in any decision.

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(f) To get description about perception and public hope towards regional road development activity plan at their areas. (g) To ensure that the public is provided with opportunities to participate in the decision making process and to influence decisions that will affect them.

II. CONSULTATION PROCESS

Process of public consultation activity planned with prepare list of road link at West Kalimantan corridor (in Table-1) and begun with send the letter to West Kalimantan Public Works Agency to help Consultant as facilitator (consultation execution place, prepare invitation to stakeholders). Public consultation is carried out after workshop activity at Pontianak on January 15, 2009 and announcement execution in provincial newspaper. In public consultation meeting, Consultant recommends the stakeholders that invited to follow consultation meeting among others:

• the Community leader as representative of community at Sambas regency, (Pemangkat district , Seamark district, Tebas and Sebawi district ) Sanggau regency (Tayan Hilir district , Balai Karangan, Kembayan , Beduai, Sekayam and Entikong district ) and Singkawang city (Selakau district, Singkawang Tengah and Singkawang Utara district) • Element of district government in Sambas regency, Sanggau regency and Singkawang city. • NGOs that concern in environment, HIV/Aids and social and cultural conditions in Sambas regency, Sanggau and Singkawang city. • A representative of the Bapedalda in the Province. • A representative of Bappeda (Planning of Development Board) in Province. • A representative of Public Works Agency in Sambas regency, Sanggau regency and Singkawang city. • A representative of Public Works Agency in Province. • A representative of P2JJ in Province. • A representative of Forestry Agency in Province.

Table-1 List of Link at West Kalimantan Corridors

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The information of the public consultation was published in provincial newspapers (Borneo Tribune daily) before execution of consultation meeting. Advertisement announcing the commencement of the IEE (Annex A the copies of advertisement in Indonesia language), the background information document, the schedule consultation and venue of the consultation meeting also solicited public opinion about the IEE study and return addressed of the Consultant and Directorate General of Highway .

A. Feedback to Public and Overview of the RRDP

The Consultant carries out consultation meeting with explain of overview about RRDP that previous done consultation meeting opening by Public Works Official of West Kalimantan and act as moderator in the event is Head of P2JJ West Kalimantan. The Matter for presentation and questionnaire is distributed during this consultation meeting execution. Background of road link conditions, activity plan of RRDP (civil works that proposed), land acquisition /resettlement and social (HIV, Aids and poverty) impact aspect is explained in this consultation meeting.

B. Public Consultation Meeting

According to ADB guidelines, the consultation public for project with B category enforceable once. This consultation meeting is carried out only 1 (one) province because time limitedness and followed by 36 participants from 40 participants that invited in this consultation execution. There some of participants can not present because several problem among others; distance of Pontianak (location of meeting) enough far from address of participant and there are some road link at Sanggau regency is experiencing flood. From 36 participants that present in this meeting covers ; Community leaders that represent of several regencies, 4 representative of NGOs ( Amman Kalbar NGOs, Titian NGOs, and KPA NGOs and VPN NGOs), government officials from village, district, regency and province. List of participant in this meeting can seen in Annex C and photograph in this event can seen in Annex F. Environment and social potential issues as like ; land acquisition, land compensation, HIV /Aids, flood condition of location , increasing dust concentration during construction phase, road using by Crude Palm Oil Company that caused road damage are addressed in during execution of the meeting.

III. SOCIAL AND ENVIRONMENTAL ISSUE ADDRESSED IN THE MEETING

Execution of the public consultation belongs to successful if review from total of participant that present, although distance between participant residence and location of meeting far relative. The Participants in general very enthusiastic to give suggestion and conception about plan of road development at West Kalimantan region. In this consultation meeting, the Consultant explain potential issue from environment aspect, resettlement and social aspect (HIV/Aids, poverty, Indigenous People) begins pre construction stage, construction stage and operation stage. Potential impact that covers in pre construction stage is land acquisition that needed for Right of Way (ROW), land compensation and resettlement. For construction stage cover ; disturbance of water balance ( runoff and current disturbance of drainage), increasing of dust concentration and noise , loss of vegetation in road side, traffic disturbance, while

Preparing the Regional Roads Development Project – Final Report 5 Annex 7 Poverty and Social Assessment – Annex 1 for operation stage covers ; traffic smoothness, increasing of regional economic growth, poverty reduction and increasing of HIV /Aids, and human trafficking. Conception from Titian NGOs (NGOs that concern in environmental) give information about legal procurement material for road and bridge construction because during time there the Contractor that use wood that come from illegal logging, this matter necessary attention to prevent deforestry , while from KPA NGOs (Provincial Aids Committee ) to explain not agree that road development not affect and not necessary to take attention towards increasing of HIV/Aids because the numbers of people who are living with HIV /Aids always increase every day, so be requested to ADB take attention to this issues. AMAN Kalimantan Barat NGOs (West Kalimantan Indigenous People Networks) to explain about Indigenous people should be involving in development planning, executing and evaluating of the project for eliminating the conflict and socialization before that done before road construction is very important.

Conception and opinion that received from Community Leader and Government at district and Kabupaten (regency) level in general agree towards road development project execution at their area and necessary done socialization to community before construction execution so that doesn’t evoke negative impact to community . Some useful information from Public Works of Agency of Sambas regency there several road link that enough ROW and land acquisition has done by local government. Conception or opinion of participants and response of Consultant in public consultation meeting can see in Annex E.

IV. SUMMARY OF THE COMMENTS

Community leaders, head of village, head of district and representative of Government regency and province also NGOs with total 36 persons in meeting in general to give opinion agree with road development plan. Some of the comments in general explain about very important be done socialization to community for road development that needed land acquisition. Conception or comment about environment issue in general is flood condition at several road link , increasing of dust and noise level , road material use that come from illegal logging , traffic problem because road condition not proper ( damage and narrow) . Comments about HIV and human trafficking from participants less jut except from NGOs that concern hit that thing.

From questionnaire (Annex D) that distributed during public consultation execution, so comment or conception of social aspect shall be as follows:

• Generally the communities have already heard about the program and they know from official /regional institution and from survey visit by consultant. • The communities had opinion that the road can be influenced on social life and economic standard for local communities. • Socialization /Consultation/Negotiation; the Communities expected when socialization will be conduct, they want directly consultation in one meeting and discussion. The socialization should be conducted at village/sub district office. They want that all people affected by road widening /project and also community leader will invited on the meeting. • They inform that some important asset will be affected by project such as custom land /bengko, business area, water supply networks.

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• They inform that they agree with relocation but depend on location of resettlement.

Comments that can description about altitude of participant towards plan of road development as follows:

• Care of land acquisition and land compensation (100 % from 26 person) • Sensitive matter that can influence to road repair /development: - Land acquisition (land price) - Found of cemetery that hit. • Supporting and agree with plan of road development (100 %) • Public consultation activity benefit and socialization (100 %) • Hope with regional road development activity existence - Necessary to done socialization - There is no anomaly of budget and project quality. - Legality of material that used - To consider about environmental impact - Hope to involved as project works

V. CONCLUSION

The Result of Public Consultation Meeting was positive with community considering that the road will bring significant economic benefit to an area, which has been ignored for along time. To get description about opinion and public aspiration, activity of public consultation can give profit to see how far immediacy of road link that proposed towards obstacle in construction execution preparation. Public consultation result more constructive when carried out to road link that ready /chosen and there is no obstacle in land acquisition problem, environment and social problem that will disturb the construction execution.

From public consultation meeting inferential that stakeholders at West Kalimantan Province very support to road development plan that proposes by RRDP. Several important thing that get from this event is information for link SP3 Tanjung – Bts Serawak , land for need road widening has been released by local government with ROW 17 – 20 m. For other links according to information that got from meeting result in general community has agree carried out land acquisition provided before that works carry out necessary done socialization. Land acquisition problem usually more jut to proposed in this forum, while related to environment is information the happening of flood in several road link that belong in RRDP proposal, road and bridge material that come from illegal logging and dust pollution.

Road and bridge construction soon carried out , good road quality, transparent in budget is hope that proposed by several participants.

Important recommendation necessary is proposed from result of public consultation the important has been done socialization in community before project implementation stage , execution of environment management and monitoring, minimize social problem can influence project execution.

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Annex A Newspaper Advertisement in Indonesia Language

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Annex B

Invitation to Public Consultation Meeting

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Annex C List of Participants in the Consultation Meeting

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Annex D Questionnaire (in Indonesia language)

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ANNEX E

COMMENTS OF PARTICIPANTS AND CONSULTANT’S RESPONSE IN PUBLIC CONSULTATION

No. Name of Suggestion/Comments Response from the Consultants Institution/Community Leader /NGOs. 1 Mr. Usman , Sos - Socialization activity is important to be Socialization activities will be Head of Sajingan held and consultant should invite and held on the next stage, in present District- Sambas involve community. We would like give time in feasibility study stage Regency appreciate that consultant already involve so the information is limited only community at early stage, so the identification of land acquisition . community got prepare/ready to accept On the next stage we will carry the project. In the next socialization, out detail survey , LARAP study consultant should give information the land should be done when the project will be affected by the project, and how require land acquisition and about the project which affected the land affected more than 40 KK. tenure ?

ADB guideline mention that the

project avoid or minimize a - The Community expect so that there is no resettlement/relocation effects, relocation/resettlement , the community and if resettlement is usually less satisfied with new location unavoidable, the bank help /new settlement because new location not restore the quality of life and good and very far with location of their livelihood of those affected, and activity and minimum infrastructure. minimal their life of affected

people is same with before

project constructed

Compensation for plant have - For link Galing – Tanjung no problem for specific regulation, the project will land acquisition but that necessary give compensation according the attention is vegetation that has by regulation community . Generally the responsible of land

acquisition is provincial/regional - If the project is carried out ,land government, the Bank limited acquisition be whose responsibility ? give loan for physically aspect.

This information is very helps - the Community in general can get the consultant to get description project and ready to release when hit about community perception to project. project plan.

In document IEE pine up about - Increasing of dust and noise will happen management about dust at construction stage and post construction increasing impact in construction stage necessary for attention. stage and post construction stage so that increasing dust preventable or reduced.

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2. Mr. Sabib - Several road link that RRDP proposed , This information is very useful Public Work Agency of the land for road development has ready, and help consultant to decide Sambas regency that begin from TanjungJunction 3 road link that ready with the (Simpang 3) until Serawak border has land need, and can be ROW 17 – 20m. even plants and walk deliberation to tranche 1 store (café) also get change to loss category. proper (fund from local government budget /APBD). When approved by ADB carried - Construction execution for rod link at out detail design beforehand, Sambas regency soon enforceable. before construction execution begun

3. Mr.Jumeno Including for bridge, and this Head of Separuk - Is bridge development also including in information is very useful for District This project, because there are 4 bridge consultant to improve and (Pemangkat bridge, Besi bridge, Gersik accommodate in preliminary Bridge and Separuk Market bridge), 2 design. bridge needed for arising grade and another 2 (two) bridge needed for . widening. Socialization activities will be - Need socialization to community before held on the next stage, and construction execution especially road present time in feasibility study development activity that evoke of impact stage, the Consultant does public towards several cafes and kiosk found at consultation once according to roadside . ADB guidelines. The Policy ADB give more attention on compensation for livelihood.

Generally the responsible of land - In Semparuk district there are land of acquisition is provincial/regional agriculture and oil palm plantation. Who government, the Bank limited Is responsible if some of the agriculture give loan for physically aspect and plantation land will be taken ?

4. Mr. Hariyanto In the end link of Tebas there are many This information is very useful as Head of Tebas district community having economic activity as input for social impact kind in small business (cafes) along the road. They study IEE. are selling all kind of fruit. Who are going to responsible if they should moving another place? Their economic activity will be gone. I suggest to project not to remove them, so they can continue their economic work.

5. Mr. Kukuh T - Sosok – Tayan to Entikong wll pass To value compensation payment, Head of Public Works through plantation and residence. Even the government have land Agency of Sanggau some village is closed with the road. Sub- acquisition Team who has regency District Office can’t conduct socialization capable to build other team has a although they know about the road task to value compensation, planning, but design is not yet clear. especially in Entikong, namely Team Land Price Value Recently at Entikong are will be expensive refer related regulation. area. The land price became increased

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and the community do not want to get some land compensation with low price.

- Balai Karangan – Entikong link needed to For Balai Karangan - Entikong be widening because existing road not link in RRDP to proposed for enough anymore due to increasing vehicle widened. traffic such as bus from Malaysia to Indonesia

- Land acquisition activity necessary stock This suggestion as input of the taking and planned well, use reference study. towards same activity in previous land acquisition.

- In this feasibility study is necessary This information is very useful for considering at several point at link of consultant to improve and Tanjung – Entikong that experiences flood accommodate in preliminary with height 1.5 – 2 m design.

- In construction stage necessary IEE document explained about considering traffic current from CPO traffic disturbance impact that vehicle so that does not evoke traffic caused by construction activity disturbance.

- Plan of border area by regency and This suggestion by Consultant Provincial government necessary be used as input for considered. enclosed in study

- In this study necessary is studied This suggestion by Consultant enhanced of traffic accident impact. used as input for considered

6. Mr. Tedy E - Bappeda agree and support about road This opinion is very helps Bappeda ( Planning of development program at West - consultant to get description Development Board) Kalimantan and several roads at Aruk about perception towards project of West Kalimantan still to want improvement and widening. plan.

- the Impact in this environmental study is In IEE document management best be presented in the matrix form for and monitoring of impact be pre construction stage until post presented in the form of matrix construction stage (operation stage) for pre construction stage , construction stage and post construction stage. 7. Mr. Sutarni Alloy - the Local government not necessary to Enhanced of person total with AMAN NGOs embarrass talking and discuss about HIV /Aids be global rumors at (West Kalimantan IP people living with HIV because United the moment therefore ADB Networks NGOs) Nation already making the agreement concern towards this problem and Indonesian government should be especially for the project that concern also with this issues. gets aid belongs this regional road development activity.

- Indigenous people should be involving This opinion is useful for In development planning , executing and consultant as input the study, but evaluating of the project for eliminating based on field survey result and Conflict. information from related institution not found around road link at RRD propose.

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- the AMAN NGOs networks are working in This information useful as input borders areas already.

This opinion is in line with aim or - Road development at border is very target that want achieved as Important to increase economic growth , regional road development especially in Indonesia area that rich with project execution result. natural resources 8. Yuyun Kurniawan - How with legal aspect when does land Legal aspect for land property Titian NGOs acquisition needed in this regional road that take outside by government development ? (like land certificate, agreement of borrows to wear forest area and others) be necessity in land acquisition for this regional road development project.

- In this study necessary considering road/ This suggestion will be input to bridge materials use clarity legally, environment management because at field is found road construction activity that pine up in IEE has used wood from illegal logging result document with give prohibition to Contractor uses wood material from illegal logging.

- In this study necessary considering In environment management community existence that live at road activity at construction stage side towards increasing of dust impact towards dust enhanced will be In construction stage. carried out compaction of the area that passed by vehicle punctually and true and water spray to opened land to decrease of impact towards community that live beside road, this management activity is included at IEE document.

- Necessary be considered to bridge and This suggestion very useful for box culvert existence that to decrease Consultant to improve and flood with considering height of bridge and accommodate in preliminary width of box culvert design.

- In post construction stage with good road This suggestion is as input to condition necessary studied possibility consider in IEE study there are settlement community that move nevertheless this impact to road side and necessary studied nature preventable when is there reserve existence as like Gunung Nyiut and regulation applications Kebun Raya Pasi emphatically to avoid citizen settlement transfer to road side. Based on field survey and information from forestry map at the road link in RRDP propose not found Nature Reserve

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Gunung Nyiut and Kebun Raya Pasi and existing link not influenced of this nature reserve.

9. Mrs. Novila Devi - Bapedalda very support and agree with This suggestion very useful for Bapedalda West plan of road development at West the consultant for get public Kalimantan Kalimantan opinion towards road (Environmental development plan. Management Agency) - What done screening in this study about One of the scope of IEE in RRDP important impact that generated by road will carry out screening each road development according rule of Minister of link that reviewed to determine of Environment Decree No. 11 of 2006 about environmental assessment study AMDAL ? kind that will used. Screening process threaten in environment regulation of GOI (Minister of Environment Decree No. 11/2006 about AMDAL , President Decree No.30/1990 about Protected area and Sensitive area and Regulation of Minster Public Works No.10 of 2008. ) and ADB guidelines . Result of screening each link can be categorized as AMDAL, UKL-UPL or SOP (GOI rule), while based on ADB guidelines can diversified of project with A category, B category or C category.

- What environmental assessment type that Because from screening result prepared in RRDP ? to every link is UKL-UPL and SOP (based on GOI regulation), so appropriate ADB guide is project with B category with duty composed IEE document.

10. Mrs. Sofwan - For opinion that explain HIV /AID not Enhanced of person total with Provincial Aids necessary to take attention in this study , HIV /Aids be global rumors at Committee ( KPA KPA NGOs not agree because the number the moment therefore ADB NGOs) of people who are living with HIV Aids concern towards this problem always increase every day and at West especially for the project that Kalimantan the Provincial AIDS gets aid belongs this regional Committee is leading by Governor. road development activity.

11. Mrs. Suhaini - Community of Tebas very support and This suggestion is very useful by Community Leader agree about plan of road development, Consultant for get description of Tebas (Sambas because will increase economic growth community perception about regency) at Sambas regency project plan.

12 Mrs. Rudy Rahmad - Road development /repairing necessary is This suggestion is very useful by VPN NGOs of support because existing road in not good Consultant for get description Sambas regency condition so community experience community perception about

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Transportation difficulty to market of project plan. agriculture or plantation result.

13. Mrs. Hayam Hanik Plan of road widening necessary be done Socialization activities will be Community Leader of socialization towards community held on the next stage, and Semparuk Village present time in feasibility study stage, the Consultant does public consultation once according to ADB guidelines 14. Mrs. Solichin Realization of road development necessary This opinion very useful by Comunnity Leader of soon carried out because existing road not consultant and enthusiastic of Sambas regency Proper. Community is how does the important road development /repair at this area. 15. Mrs. M. Syerly This public consultation activity necessary is Socialization activities will be District government of continued socialization to community by held on the next stage, and Pemangkat head of district (camat) and attended by present time in feasibility study project consultant. stage, the Consultant does public consultation once according to ADB guidelines

16. Mrs. Ahind S Government of Pemangkat district very This statement is very useful for Tonas Sajuga NGOs support about plan of road development Consultant to get description opinion of community about project plan. 17. Mrs. Ilhamsyah Plan of road development necessary done Socialization activities will be Sambas government socialization to community and necessary held on the next stage, and involve local community when construction present time in feasibility study activity is carried out. stage, the Consultant does public consultation once according to ADB guidelines

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Annex F

Pictures of Event

Preparing the Regional Roads Development Project – Final Report 21 Java Corridor PIR Item Financial Economic Economic – Present Value Present Value Financial Passenger Users Freight Vehicle Gov/ Users Owners Labor Economy Net

Benefits VOCs Road User Benefits 7,626.0 7,626.0 1,507.6 1,469.7 4,648.7 - Time Saving Benefits 945.3 945.3 384.5 560.8 - Cost Capital Less Capital Labor - 3,511.1 - 2,885.4 625.7 625.7 Maintenance Less Main. Labor - 32.2 6.8 39.0 39.0 Capital Labor - 619.6 - 509.2 110.4 110.4 Maintenance Labor - 8.3 - 6.8 1.5 1.5

- 4,171.1 5,176.7 9,346.4 1,892.1 1,469.7 5,209.5 111.9 Net Present Value 664.7

Gains and Losses 1,892.1 1,469.7 5,209.5 111.9 - 3,506.5 5,176.7

Proportion of the Poor (%) 0.163 0.232 0.079 0.039 0.100 Net Benefits for the Poor 307.5 341.5 411.3 4.4 - 350.6 714.0 Poverty Impact Ratio 0.138 Net loss to Government/Economy - 3,506.464 is calculated as - 4,171.144 + 664.680 Annex 8 Draft Resettlement Framework

Table of Contents

1.! INTRODUCTION ...... 1! 1.1! THE PROJECT...... 1! 1.2! PROJECT OUTPUTS...... 1! 1.3! OBJECTIVE OF THE RESETTLEMENT FRAMEWORK ...... 1! 1.3.1! Status of Resettlement Planning for the Project: ...... 2! 2.! LEGAL AND POLICY FRAMEWORK ...... 3! 2.1! RELEVANT LAWS AND REGULATIONS IN INDONESIA...... 3! 2.2! ADB POLICY ON INVOLUNTARY RESETTLEMENT ...... 4! 2.3! GAPS OF INDONESIAN LAWS AND ADB POLICIES ...... 5! 3.! PROJECT OBJECTIVES AND POLICIES ...... 6! 3.1! PRINCIPLE OF REPLACEMENT COST...... 7! 3.2! INSTITUTIONAL ARRANGEMENTS ...... 7! 3.3! CONSULTATION, DISCLOSURE AND GRIEVANCE REDRESS...... 8! 3.4! GRIEVANCE MECHANISMS AND APPEAL PROCESS ...... 8! 3.4.1! Grievance Process...... 9! 3.5! MONITORING AND REPORTING ...... 10! 3.5.1! Entitlement Matrix ...... 10! 4.! RESETTLEMENT STRATEGY ...... 14! 4.1! RELOCATION STRATEGY...... 14! 4.2! INCOME RESTORATION STRATEGY ...... 15! 4.3! VULNERABLE PEOPLE AND GENDER STRATEGY ...... 15!

LIST OF TABLES

Table 1: Entitlement Matrix...... 10

Appendix 1: Draft Terms of Reference for Resettlement Planning Appendix 2: Resettlement Schedule Appendix 3: Summary of Road Links and Conditions Appendix 4: Summary of Public Consultations Held in West Kalimantan

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ABBREVIATIONS

ADB - Asian Development Bank AP - Affected Persons BCR - Benefit Cost Ratio BKKBN - National Family Planning Agency BPS - Central Statistical Agency, Badan Pusat Statistik CPI - Consumer Price Inde CTC - Core Team Consultant DGH - Directorate General of Highways EIRR - economic internal rate of return GoI - Government of Indonesia HAHTP - HIV/AIDS and Human Trafficking Prevention Plan HDI - Human Development Index HDM4 - highway design and maintenance 4 HH - Households IMR - Infant Mortality Rate IOM - International Organization for Migration IPDP - Indigenous Peoples Development Plan ISA - Initial Social Assessment LARAP - Land Acquisition and Resettlement Action Plan MDG - Millennium Development Goals MMR - Maternal Mortality Rate MPW - Ministry of Public Works MTDP - Medium Term Development Plan NAC - National AIDS Committee NPV - Net Present Value PAC - Provincial AIDS Committee PIA - Poverty Impact Analysis PIR - Poverty Impact Ratio PPP - Purchasing Power Parity PPTA - Project Preparation Technical Assistance PSA - Poverty and Social Assessment RF - Resettlement Framework RRDP - Regional Road Development Project PRSP - Poverty Reduction Strategy Paper PRUS - Project Road User Survey RF - Resettlement Framework RP - Rsettlement Plan SCF - Shadow Conversion Factor STI - Sexually Transmitted Disease SUSENAS - National Socioeconomic Survey UN - United Nations TTS - Travel Time Savings VOC - Vehicle Operating Costs WB - World Bank

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1. Introduction

1.1 The Project

During the 2006 country programming mission, the Government of Indonesia (GoI) requested technical assistance to prepare the proposed Regional Road Development Project (RRDP) for possible ADB financing. The GoI’s medium-term strategy for the Ministry of Public Works (MPW) identified road development in less-developed regions as a priority.

The target corridors are the National highways and strategic roads:

• South of the Southern Trans Java Highway (STJH) in West Java, Central Java, East Java and Yogyakarta Provinces.; and, • Including and within the areas of interest near the Malaysia border in West and East Kalimantan Provinces. • In both instances these are not developed corridors but the hope is to create functional and efficient corridors in these areas that are not currently serviced by adequate road networks

The Project will help promote sustainable economic growth and poverty reduction in Southern Java and Northern Kalimantan as a whole and the project areas in particular. It will achieve this by:

• improving transport accessibility and connectivity particularly in Southern Java and East Kalimantan; • enhancing road transport efficiency and safety generally; • improving the road transport network by building a section in West Kalimantan to open up transportation and development opportunities in North Western Kalimantan, and between there and Malaysian; and • improving poor rural and minority villages’ access to income-generating opportunities and social services, particularly in East Kalimantan.

1.2 Project Outputs

The Project will widen significant lengths of road, rehabilitate deteriorated road sections and replace bridges on the strategic Southern Corridor of Java and in the three strategic access roads in Kalimantan to neighboring countries.

The civil works will be monitored and support through the appointment of consulting services in the form of core team consultants to assist the Project Management Unit and design and supervision consultants to assist contractors with design issues and works quality.

The designs and initial tendering of the tranche 1 projects will be prepared prior to the project loan by Government agencies with independent international auditing. A subsequent tranche will be undertaken within the project, coordinated and certified by the DSC. The GoI will provide the resources necessary to carry out the work by local design consultants.

1.3 Objective of the Resettlement Framework

This purpose of this Resettlement Framework (LF) is to guide the land acquisition and involuntary resettlement activities under RRDP, including land acquisition assessment, preparation and implementation of resettlement plans (RPs) and monitoring. The Directorate

Preparing the Regional Roads Development Project – Final Report Annex 8 Draft Resettlement Framework

General of Highway as Executing Agency, will adopted this Land Acquisition and Resettlement Framework (LARF) to address the adverse resettlement-related impacts of RRDP.

1.3.1 Status of Resettlement Planning for the Project:

Preliminary resettlement estimates for land acquisition, number of affected households (AH), acquisition costs and Land Acquisition and Resettlement Action Plan (LARAP) study costs estimates are provided for each sub-project. This includes the assignment of ADB's resettlement categories (A - significant, B- not significant, C - no impact) to each sub-project link. As the preparation of resettlement estimates are based only on preliminary design and initial resettlement surveys, detailed LARAP studies will be carried out during loan implementation. Terms of Reference for tranche1 resettlement activities are provided in Appendix 1.

The first public consultation meeting to inform communities about the project, including the Resettlement aspects and the HIV/AIDS and Human Trafficking Prevention Plan, was held in January 2009 (see Appendix 4). A series of participatory disclosure and planning workshop will be held to give MPW the opportunity to inform participating communities about project activities and gather community comments and concerns before LARAP studies and civil works begin. Before the alignments are finalized, local government officials and communities will be consulted to minimize losses of high-quality arable land and structures. Provincial and district governments and community organizations will be involved in the implementation of the Resettlement Plan.

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2. LEGAL AND POLICY FRAMEWORK

2.1 RELEVANT LAWS AND REGULATIONS IN INDONESIA

The key legal instruments currently in force in Indonesia that are most relevant to involuntary resettlement are Presidential Decree No. 36/2005, entitled “Provision of Land for Realizing the Development for Public Interests”, as amended by Presidential Decree No. 65/2006, entitled “On Land Acquisition for Development Purposes in the Public Interest”, and National Land Agency (BPN) Regulation No. 3/2007 on Land Acquisition Implementation Guideline for Presidential Decrees 65/2006 and 36/2005. Superseding Presidential Decree No. 36/2005 that earlier amended Presidential Decree No. 55/1993, the 2006 Presidential Decree provides for various forms of compensation for private assets needed to pursue Government development projects. Both Presidential Decree No. 65/2006 and Presidential Decree No. 36/2005 build on the provisions of the earlier Presidential Decree No. 55/1993. Essentially, the 1993 Decree lays down the rules on how Government could exercise the State’s inherent power of eminent domain. Private properties could be acquired to pave the way for development projects that serve the public interest. In 2005, the 1993 Decree was replaced allowing private corporations to acquire private properties for development projects with public character. Presidential Decree No. 36/2005 was controversial since the power of eminent domain could be used to profit private entities. Presidential Decree No. 65/2006 corrected this by restricting the use of eminent domain for Government development projects only.

By and large, however, both Presidential Decree No. 65/2006 and Presidential Decree No. 36/2005 are similar, merely introducing refinements in the provisions of Presidential Decree No. 55/1993. As provided for in Chapter V, Article 21 of Presidential Decree No. 36/2005, technical directives for provisions of Presidential Decree No. 55/1993 that are not contrary to Presidential Decree 36/2005 Decree remain effective.

Presidential Decree No. 55/1993 succeeded earlier property laws, including Law Number 5 of 1960, better known as the Basic Agrarian Law, which delineates land ownership and usage based on oftentimes overlapping traditional adat land rights, western concept of land use rights, and recent trends in land tenure. The Regulation of the State Minister of Agrarian Affairs and National Land Agency No. 1 of 1994 on Operational Directives of the Decree 55/93 is the enabling regulation in the implementation of Presidential Decree 55/1993.1 This enabling regulation has been replaced by the BPN Regulation No. 3/2007.

Articles 12 and 13 of Presidential Decree No. 55/1993 provides for compensation for land, buildings, plants and other objects related to the land in any of these forms: (i) cash, (ii) land for land, (iii) land in relocation site, (iv) any combination of the above forms of compensation, and (v) any other mode of compensation agreed by the concerned parties.

In 2003, consistent with the national thrust to devolve central powers to the local governments, Presidential Decree 34/2003 (National Policy on Agrarian Affairs) was issued. Article 2 of said Decree mandates that land acquisition, including determining levels of compensation, for public development projects would be carried out by the district and city governments (Kabupaten/Kota). Where such authority crosses district boundaries within a single province, land acquisition would be carried out by the provincial government. Additionally, the Decree of the Head of the National Land Agency 2/2003 on Mechanisms, Norms, and Standards for

1 A related administrative order is Government Regulation No. 51 of 1993 (Environmental Impact Assessment) that requires a management and monitoring plan for environmental impacts, including land acquisition and resettlement. It also requires mitigation of social impacts, public disclosure, and community consultation.

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Government Authority and Management of Agrarian Affairs provides further detail on how land acquisition and compensation would be carried out. The Bupati (Regent) or Walikota (Mayor) or the Governor would set up a land acquisition committee, the “Committee of Nine”, for the purpose. Members of said Committee of Nine include representatives from the Land Office, Tax Office, Buildings Office, Agriculture Office, the heads of the district and village, and two secretaries. The Committee of Nine has the authority to conduct an inventory of affected land and assets found thereat; to investigate the status of ownership over the affected land; to inform and negotiate with the property owners together with the government agency acquiring the land; to estimate the amount of compensation; and to document and witness payment of compensation.

There are 20 district (kabupaten) local governments in the Project area (14 in Java and 6 in Kalimantan) all of which have regulations which to varying degrees may have a bearing on individual resettlement plans.

2.2 ADB Policy on Involuntary Resettlement

ADB's policy on Involuntary Resettlement was approved by the Bank’s Board in November 1995. Bank-funded projects that change patterns of use of land, water, and other natural resources can cause a range of resettlement effects. Resettlement losses most often arise because of land acquisition requirements of development projects. When this happens, housing, productive assets, community structures and systems, social networks, and social services can be disrupted. The people affected have no option, and must try to rebuild their lives, incomes, and asset base else where.

Affected Persons (APs) are defined as those who stand to lose, as a consequence of the project, all or part of their physical and non-physical assets, including homes, communities, productive lands, resources such as forests, range lands, fishing areas, or important cultural sites, commercial properties, tenancy, income-earning opportunities, social and cultural networks and activities. Such impacts may be permanent or temporary.

To ensure that people are not disadvantaged in the process of development, the Bank helps to restore or minimize resettlement effects. If resettlement is unavoidable, the Bank helps restore the quality of life and livelihoods of those affected. There may also be opportunities to improve the quality of life, particularly for vulnerable groups. All kinds of resettlement losses need mitigative measures. The following Key Principles underpin the ADB Policy on Involuntary resettlement:

a. Involuntary resettlement will be avoided where feasible. b. Where population displacement is unavoidable, it will be minimized by exploring all viable project options. c. All compensation is based on the principle of replacement cost. d. Each involuntary resettlement is conceived and executed as part of a development project or program e. Affected people will be fully informed and consulted on compensation and/or resettlement options. f. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. g. The absence of a formal legal title to land is not a bar to ADB policy entitlements. h. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cut-off date, preferably at the project identification stage, to prevent a subsequent influx of squatters of others who wish to take advance of such benefits.

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i. Particular attention must be paid to the needs of the poorest affected households and other vulnerable groups that may be at high risk of impoverishment. This may include affected households without legal title to land or other assets, households headed by women, the elderly or disabled, and ethnic minority peoples. Appropriate assistance must be provided to help them improve their socio-economic status. j. The full costs of resettlement and compensation will be included in the presentation of project costs and benefits. k. Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and ensure compliance with involuntary resettlement procedures during implementation.

2.3 Gaps of Indonesian Laws and ADB Policies

Gaps exist between Indonesian Law and ADB policies with regard to compensation. The underlying principle of Indonesian laws on property acquisition focuses on the financial and auditing procedures to value and acquire the asset. The focus of ADB Policy is the affected person or household, whether acquiring an asset would adversely impact the AHs current living standards and on compensation seeks to restore the pre-project living standard of the AH.

The following legal and operational restrictions illustrate the gap between existing Indonesian laws and regulations and ADB’s Policy on Involuntary Resettlement: a. Government auditing policies compel Executing Agencies not to compensate at replacement rates for affected fixed assets, such as buildings. The value of the affected asset, even if lost involuntarily, is depreciated and the value of salvageable materials deducted from the amount of compensation. b. In the absence of a law for the purpose, Executing Agencies are not compelled to pay informal settlers any compensation for affected fixed assets. In fact, it is up to the Implementing Agency to decide if these AHs would receive anything at all. c. In the absence of a law that provides for, or prohibits, the granting of income loss arising from business and work disruption, the Implementing Agency in general would rather not grant said compensation entitlement for fear of any legal backlash. d. Current legal framework does not include a definition of non-physical losses or how to apply a value to them, no requirement to identify or address vulnerable groups, no provision for any affected people other than title holders, no requirement for disclosure to affected people, and no opportunity for affected people to participate in planning, implementation or monitoring, and no requirement to develop resettlement plans.

To address the gap in policies, the Project resettlement policy is provided in Section 5.

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3. Project Objectives and Policies

This LARF reflects ADB’s policies on Involuntary Resettlement (1995), Operations Manual (OM) F2 (2006), Indigenous Peoples (1998), Gender and Development (1998), Accountability (2004) and Government regulations and guidelines for the implementation of the Project. The provisions and principles adopted in this framework and subsequent plans prepared will supersede the provisions of the relevant Government decrees and regulations currently in force in Indonesia wherever a gap exists.

The core principles of the Project Resettlement Policy are as follows:

a. Acquisition of land and other assets shall be avoided and minimized as much as possible by identifying possible alternative project designs, and appropriate social, economic, operational, and engineering solutions that have the least impact on populations in the project area. b. All affected persons (APs) shall be eligible for compensation and rehabilitation assistance, irrespective of tenure status, social or economic standing, and any such factors that may discriminate against achieving the objectives outlined above. Neither lack of legal rights to the assets lost or adversely affected, or tenure status or social or economic status will bar the AP from entitlements to such compensation and rehabilitation measures. Non-titled APs or those who have no recognizable rights or claims to the land that they are occupying, (e.g. informal dwellers/squatters), are entitled to compensation for non-land assets and various options of assistance, provided they cultivated/occupied the land before the eligibility cut-off date. c. APs shall be fully consulted and the preparation of RPs and their implementation shall be carried out with the full participation of APs. The comments and suggestions of APs and communities will be taken into account during the design and implementation phases of land acquisition and resettlement activities. d. APs that are physically displaced from housing and/or lose 10% or more of productive land, assets or income are considered to be severely affected. In the event of significant impacts2 upon any APs, compensation for lost assets will be at replacement cost3 and the Project will provide appropriate rehabilitation measures to assist these APs to restore their pre-project living standards, incomes, and productive capacity. e. All APs will be entitled to compensation for all losses at replacement cost. f. Special measures shall be incorporated into subproject RPs and complementary mitigation and enhancement activities to protect socially and economically vulnerable groups that may be at high risk of impoverishment, such as those without legal title to land or other assets, ethnic minority peoples, households headed by women, children, the disabled or elderly, and the poorest people4.3 Appropriate assistance through asset building strategies will be provided to help them improve their socio-economic status.5 g. There shall be effective mechanisms for hearing and resolving grievances during the preparation and implementation of RPs.

2 OM F2/BP para 5 footnote 12 defines significant impact as physical displacement and/or loss of 10% or more of productive assets. 3 Replacement cost will be determined based on market value that reflect recent land and asset sales and in the absence of such recent sales, based on productive value (for productive/ agricultural land) or based on similar location attributes for residential and commercial land. 4 Poor households are those whose income levels are below the respective provincial poverty line of the current year as recorded by the Statistical Office (BPS) or as identified by the community themselves. 5 OM F2/BP para 4; OM F2/OP, para 16

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h. Details of the RPs shall be disclosed to APs and any interested groups through public meetings and in the form of summary RPs or information booklets and leaflets in a language that can be understood by the APs and in an accessible place (such as project and commune offices). i. Appropriate reporting and monitoring and evaluation (M&E) mechanisms shall be identified and set in place as part of the resettlement management system.

3.1 Principle of Replacement Cost

Affected land within government land and all compensation for non-land assets owned by households/shop owners who meet the cut-off-date will be based on the principle of replacement cost and existing government regulations for compensation calculations for building, crops and trees will be used if available. Replacement cost is the amount calculated before displacement which is needed to replace an affected asset as follows:

a. Houses and other related structures based on actual current market prices of affected materials; b. Annual crops equivalent to current market value of crops at the time of compensation; c. For perennial crops, cash compensation at replacement cost is equivalent to current market value given the type and age at the time of compensation. d. For timber trees, cash compensation at replacement cost will be equivalent to current market value for each type and age at the time of compensation based on the diameter at breast height of each tree and the productivity of tree.

Where private land will be affected, affected households who have formal legal rights (hak milik) and customary and traditional rights (adat or ulayat) and those whose claim over the affected land is under application for full title, replacement cost is the amount calculated before displacement as follows:

a. Productive Land (agricultural, aquaculture, garden and forest) based on actual current market prices that reflect recent land sales in the area, and in the absence of such recent sales, based on recent sales in comparable locations with comparable attributes, fees and taxes or in the absence of such sales, based on productive value; b. Residential land based on actual current market prices that reflect recent land sales, and in the absence of such recent land sales, based on prices of recent sales in comparable locations with comparable attributes; fees and taxes.

Non-land assets on affected private land will also be at replacement cost as defined above.

3.2 Institutional Arrangements

MPW will assume the overall responsibility for implementing resettlement according to the approved RPs. Provincial and District offices will take the primary responsibility for the resettlement consultation, implementation and timely delivery of entitlements, with assistance from concerned townships and villages.

Provincial levels will be directly responsible to coordinate the planning, implementation and reporting of land acquisition and resettlement, and district offices will be set up in all the relevant districts with staff assigned to implement resettlement planning.

A step-by-step resettlement schedule is provided in Appendix 2 of this report. Although, this schedule is generic and is intended as guidance in undertaking resettlement planning activity related any of the project road links, it is anticipated that draft final resettlement plans are completed by month 7.

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The Decree of the Head the National Land Agency No.2/2003 on Mechanism, Norms and Standards for Government Authority and Management of Agrarian Affair, stipulates that land acquisition and resettlement will be executed by the Committee establish by Governor, or Bupati (Regent) or Walikota (Mayor) namely “Committee of Nine” (depending on the location and source of budget). The Committee of Nine includes Representatives of Land Office, Agriculture Office, The Head of District and Village, and two Secretary. The Committee of Nine has an authority to conduct an inventory of affected land assets, negotiate with the property owners together with the Government Agency acquiring the land, to estimate the amount of compensation, and to document anything that may have a bearing on individual resettlement plans.

3.3 Consultation, Disclosure and Grievance Redress

Consultations will be conducted with the AH with particular consideration to vulnerable and severely affected households and will be in accordance with ADB policy.

Dissemination of information on resettlement activities will be both through verbal and written communication that are accessible and use language that is easily understood by the APs. These activities will involve focus group discussions and community meetings and especially with the APs and all consultation and disclosure activities will be properly documented. All minutes of meetings, photos, attendance sheets will be prepared and recorded. The issues and suggestions raised by AHs and concerned groups will be will be incorporated in the draft RP. The information will be made publicly available and provided to the affected households in the form of a summary RP, an information leaflet or brochure. Key information to be disclosed to the affected households will include:

• compensation, relocation and rehabilitation options, • detailed asset valuations, • entitlements and special provisions, • grievance procedures, • timing of payments, and • displacement schedule.

Social monitoring reports will also be made available to affected households and will be uploaded on ADB website.

3.4 Grievance Mechanisms and Appeal Process

There shall be effective mechanisms for hearing and resolving grievances during implementation of the resettlement plan. Grievance mechanisms and appeal process, including assurance that project policies and procedures are designed to ensure that APs restore their pre-project living standards. This includes information about the responsibilities of the MPW, provincial resettlement committees and other stakeholders to help to resolve confusion, misunderstandings or problems about land acquisition, compensation rates, rehabilitation and relocation. It will also include information about procedures for filing complaints and the appeal process.

Any AP will have the right to file complaints and/or queries on any aspects of land acquisition and resettlement activities of the subprojects. Guidelines for the complaint and grievance procedures will be submitted to the GoI and the ADB prior to implementation of RP.

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3.4.1 Grievance Process

Grievances related to any aspect of resettlement will be handled through negotiation aimed at achieving consensus. It is recommended that complaints will pass through three stages before they could be elevated to a court of law as a last resort.

First Stage

• An aggrieved AH may bring his/her complaint before any member of the RWG or the area coordinator of SES, either in writing or verbally.

• It is incumbent upon said member of the RWG to notify the Village Chief about the complaint who, in turn, will inform the Camat.

• The Sub-district Chief together with the Village Chief will have 14 calendar days following the lodging of the complaint by the aggrieved AH to act on the case.

• He/she may call, as needed, any member of the LAC, to help him/her come up with an acceptable resolution of the complaint.

• The Kecamatan (Sub-district government) is responsible for documenting and keeping file of all complaints that it handles.

Second Stage

• If after 30 calendar days the aggrieved AH does not hear from the Camat or the Desa/Lurah about the complaint, or if the AH is not satisfied with the decision taken by the Camat, the AH may bring the complaint, either in writing or verbally, to the Bupati (Head of Regency or District) or the Walikota (City Mayor).

• The Bupati or Walikota in turn will have 30 calendar days following the lodging of the complaint by the aggrieved AH to act on the case. He/she may call, as needed, any member of the LAC, to help him/her come up with an acceptable resolution of the complaint.

• The Kabupaten/Kota (Regency/City Government) is responsible for documenting and keeping file of all complaints that it handles.

Third Stage

• If after 30 calendar days the aggrieved AH does not hear from the Kabupaten/Kota, or if the AH is not satisfied with the decision taken by the Bupati or Walikota, the AH may bring the complaint, either in writing or verbally, to the Office of the Provincial Governor.

• The Governor has 30 calendar days within which to resolve the complaint to the satisfaction of all concerned.

• The Office of the Governor is responsible for documenting and keeping file of all complaints that reaches the same.

Final Stage, the Court of Law Arbitrates

• If after 30 days following the lodging of the complaint, the aggrieved AH does not hear from the Office of the Provincial Governor of if he/she is not satisfied with the decision taken by the Provincial Governor, the complain may be brought to a court of law for adjudication

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• The rules of court will be followed in the adjudication of the complaint

3.5 Monitoring and Reporting

The plan for internal and external monitoring and evaluation will be included in the RPs completed during loan implementation. MPW will engage a qualified domestic monitor to carry out independent resettlement monitoring and evaluation. The monitor will ascertain whether APs have (i) received their full entitlements on time and (ii) fully restored their livelihoods, income levels and living standards. The household survey will include a representative number of those severely affected by loss of land, those losing housing, and those classified as economically vulnerable. The monitor will provide ADB and MPW with copies of the monitoring and evaluation reports twice a year during resettlement implementation and once a year after resettlement completion.

Cost estimates for Monitoring and Evaluation are included in the LARAP study costs. Separately, these are expected to be Rp. 2.2 million.

At the national level, as stipulated in MPW decree No.286/PRT/M/2005 on Organization and MPW Framework and Resettlement, the monitoring of Land Acquisition and Resettlement activities comes under responsibility Directorate of Technical Affair, specifically the Sub. Directorate of Environmental Technical Affair. At the Regional level the activities of the committee of nine will be monitored by The Regional Government.

In addition to the above, the activities of the Committee of Nine are also monitored by PMU, directly and/or by using a consultant, and daily performance of PMU, will be under coordination of Directorate of Planning, DGH. Typically a PMU is established for each loan and they have been very successful in monitoring administration, project activities and budget allocation.

3.5.1 Entitlement Matrix

The entitlement matrix summarizes the main types of losses and the corresponding nature and scope of entitlement. It will be used as a guideline during the census and inventory of the losses and will be revised as necessary when LARAP studies are undertaken during loan implementation.

The cut-off date of eligibility refers to the date prior to which the occupation or use of the project area (i.e. area within the corridor of impact) makes resident/user of same eligible to be categorized as affected Household/people and be eligible to project entitlements. The establishment of the eligibility cut-off date is intended to prevent the influx of ineligible non resident who might take advantage of project entitlements.

Table 1: Entitlement Matrix CATEGORY OF Entitled Persons PROJECT ENTITLEMENTS IMPACTS/LOSSES Impacts on LAND Permanent loss of land - Those who have formal legal Cash or in kind compensation agricultural, residential or rights (hak milik) and at replacement cost which is commercial land customary and traditional based on market value that rights (adat or ulayat) and reflect recent land sales and those whose claim over the in the absence of such recent affected land is under sales, based on productive application for full title value (for productive/ agricultural) or based on similar location attributes (for residential and commercial land. Temporary loss of land - Those who have formal legal Payment of rent for residential

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agricultural, residential or rights (hak milik) and land based on existing or commercial land customary and traditional ongoing rental agreement in rights (adat or ulayat) and the area or as per negotiation those whose claim over the with AHs. affected land is under application for full title For productive land, rental will be no less than the net income that would have been derived from the affected property during disruption.

Compensation for affected crops at replacement cost for the duration of the impact, and

Land will be restored to pre- project condition or better

MARGINAL IMPACTS due Users/Occupants who have • No compensation for land, Permanent Loss of Land Use NO formal legal rights (hak • Compensation for crops and milik) nor customary and trees based on replacement traditional rights (adat or cost principle ulayat) : Marginal impacts: Temporary Loss of Land Use Users/Occupants who have • No compensation for land, to construction activities. NO formal legal rights (hak • Compensation for affected milik) nor customary and crops at replacement cost for traditional rights (adat or the duration of the impact, and ulayat): Relocation of AHs Relocation of AHs Those who have formal legal • Compensation for and Shop Owners rights (hak milik) and crops and trees due to Permanent customary and traditional based on Loss of Land Use rights (adat or ulayat) and replacement cost those whose claim over principle the affected land is under • Provision of application for full title transport allowance based on actual cost of moving to new site (labor, transport cost) or provision of transport assistance will be provided. • Provision of transition subsistence allowance will be provided • Entitled to participate in Livelihood restoration program Relocation of AHs and Shop Informal Dwellers but have • No compensation for land, Owners due to Permanent Other Land on Which Outside • Compensation for structures Loss of Land Use the Project Area based on replacement cost principle • Compensation for crops and trees based on replacement cost principle • Provision of transport allowance based on actual cost of moving to new site (labor, transport cost) or provision of transport assistance will be provided in the form of program within the LRP. • Provision of transition subsistence allowance will be provided.

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• Entitled to participate in Livelihood restoration program. Relocation of AHs and Shop Informal Dwellers but Have • No compensation for land Owners due to Permanent NO Other Land Outside the • Compensation for structures Loss of Land Use Project Area based on replacement cost principle Compensation for crops and trees based on replacement cost principle • For house and house-cum- shop, the Project will facilitate access to a residential plot (and with commercial advantage for house-cum- shops) within the village or nearby, with affordable renewable lease or lease-to- buy agreement. The area will be with similar or better conditions as before with latrine • For shops, the Project will facilitate access to a place/plot to lease/rent with similar commercial advantage either in existing market sites or a plot of land suitable for putting up stalls/shops (new market). Lease arrangement will be with a provision to renew and shall be facilitated by the project. Provision of transport allowance based on actual cost of moving to new site (labor, transport cost)or provision of transport assistance will be provided in the form of the LRP. • Provision of transition subsistence will be provided in the form of the LRP. • Entitled to participate in Livelihood restoration program. NON-LAND ASSETS Houses/Shops and Owners regardless of whether • Compensation at Secondary Structures or not the owner has hak replacement cost based on guna bangun (building permit) actual current market prices of materials and actual cost of labor for dismantling, transfer and rebuild Renters of Structures • Assistance to (house/shops) tenants/renters to find a new place to live or do business • Assistance to find new rental property • Entitled to participate in Livelihood restoration program. Public Infrastructure and Owner (Government) • Rebuild the facilities Facilities based on agreement by both parties. Crops and Trees Owners • Annual Crops. If standing crops are destroyed or cannot be harvested, compensation based on replacement cost principle

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• Perennial Crops. Compensation based on replacement cost • Timber Trees. Compensation at current market rates based on type of tree and diameter of trunk at breast height INCOME LOSS Significant Impact Due to House-cum-shop and shop- • Entitled to participate in the Relocation of Shops or owners whether or not with Livelihood Restoration House-cum-shops land outside the Project Area Program (LRP) HIGH RISK OF IMPOVERISHMENT /HARDSHIP Due to loss of resource base Poor and vulnerable • Entitled to participate in the Households even if marginally Livelihood Restoration affected Program and LRP Allowance. IMPACTS DURING CONSTRUCTION Non-Land Assets Owners of affected non-land • Compensation at assets Replacement Cost as indicated above

The provision of a Livelihood Restoration Program will be determined based on the LARAP Study. At the conclusion of the study, the results are discussed with the related Government, the national and/or regional level and the Lending Agency to determine if one is appropriate.

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4. Resettlement Strategy

Efforts to minimize resettlement effects will be made through consultations with MPW, local officials and the communities during detailed design. Within tranche 2 options for bypasses and realignments will be considered in order to avoid towns and large clusters of rural housing.

Where relocation is required, all efforts will be made to allow those loosing housing to acquire new housing sites with their existing group or village, and close to a road. All sites will be provided with water supply, electricity, telephone and other key facilities. There will be no reduction in house compensation for depreciation, and people can salvage materials from their old houses. Those people losing land temporarily during construction will receive a payment equivalent to production value foregone. The land used temporarily will also be restored by the contractor to the original condition.

The resettlement strategy will include measure to encourage the participation and understanding of people affected by project activities. Provision of information on the projects will start early6 and will continue throughout all stages of project development, in order to facilitate dialogue with affected people and other stakeholders. MPW will develop a project communications plan and designate a focal point to maintain contact with affected people. With respect to land acquisition, compensation and resettlement, information will be distributed to affected peoples (APs) and publicized in the following manner: (i) prior to loan appraisal, the draft Resettlement Plan (RP); (ii) following completion of the final RP, the final RP; and, (iii) following any revisions, the revised RP. This information can be in the form of brochures, leaflets or booklets, in the local language(s) as well as English, the working language of the ADB. When APs include non-literate people, other appropriate methods of communications will be used.

4.1 Relocation Strategy

Households will be consulted with regard to their option for relocation. For households who are entitled to payment for land, it will either be land-for-land in a resettlement site or individual site or cash/in-kind compensation or in the form of a special program under the LRP at replacement cost.

For those who have no rights to their land, the implementing agencies will facilitate in finding replacement land for these AHs in a resettlement site, group or individual sites.

The arrangements will be on a renewable lease agreement, lease-to buy arrangements. The area will be with similar or better conditions as before. They will also be provided transport and transitional assistance in the form of a special program under the LRP while relocating and re- establishing their houses.

For independent shops/stalls, the Project will facilitate access to a place/plot to lease/rent with similar commercial advantage either in existing market sites or a plot of land suitable for putting up stalls/shops (new market) with lease arrangement with a provision to renew.

They will also be provided transport and transitional assistance in the form of a special program under the LRP while relocating and re-establishing their businesses. Thus, they will be in a position to be able to reestablish and restore their income sources and their income losses will be minimized.

6 Public consultations were held in West Kalimantan in January 2009.

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The amount of the lease will be determined in consultation with AHs, and will take into account the ability of each AH to pay. For vulnerable AHs who may not have the ability to generate much income, consideration will be given to either adjusting the lease amount accordingly until they are able, in the form of a special program under the LRP, to increase their income level sufficiently to be able to pay the full amount of the lease.

4.2 Income Restoration Strategy

In addition, the resettlement plan will comprise an Income Restoration Program (IRP). The project will establish a Resettlement Working Group (RWG) to will coordinate the identification of those eligible for IRP.

The IRP will include a needs assessment and be tailored for different needs of affected people and different provincial settings and may include: • livelihood activities aimed at income generating and poverty reduction • improved agricultural techniques and small business training • general allowances (e.g. transport and transitional) related to relocation and livelihood restoration • special considerations for severely affected and vulnerable people

The project may engage the services of a local NGO or other organization who have expertise in social development and training to assist in the development of the IRP.

4.3 Vulnerable People and Gender Strategy

Vulnerable AHs are distinct groups of people who might suffer disproportionately of face the risk of being further marginalized by the effects of resettlement. The project will ensure adequate compensation for affected people which will give special consideration for vulnerable people include the elderly, disabled, households headed by women, extremely poor households, and indigenous people.

• Separate consultation meetings will be conducted with these households on specific resettlement concerns, such as compensation and entitlements, rehabilitation of livelihoods and relocation as relevant. • All public information and consultation meetings will ensure that vulnerable households are present.

It is not anticipated that indigenous communities will be significantly impacted by resettlement activities; East and West Kalimantan are the provinces least impacted by resettlement activities and projects surveys reveal that traditional indigenous communities are living more than ten km from the existing roads. Nevertheless, resettlement organizations staff will include members of indigenous groups and ensure that communications and public consultations are undertaken with respect for appropriate language groups and cultural sensitivity.

Women are likely to be affected in a number of ways by the Project resettlement activity. A number of strategies are, therefore, recommended to ensure gender-sensitive resettlement and rehabilitation measures and to engage women actively in the planning and implementation of the resettlement program and other programs. The MPW and the Independent Monitoring Organization (IMO) will be directly involved in all aspects of the development and implementation of the gender strategy, to ensure that these measures are adequate and satisfactory to female APs and other stakeholders. Therefore, the socio-economic profile of APs will disaggregate available data by gender and LARAP study will include a gender analysis. The RP will also develop a Gender Strategy to define specific measures to ensure that women share in the project benefits, for example, project-related employment and to minimize risks to women

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associated with land acquisition and resettlement, or with changed conditions due to the road improvements. The gender strategy will include specific activities as outlined below:

• Consultation meetings on resettlement activities will be held separately with women, female headed households and elderly women; • The resettlement working group will include women representatives from affected households; • At the inception of the Project, a capacity building training program on resettlement activities will be designed for the female and male local officials, and women and men from affected households to orient them about resettlement activities. Participation of poor women and women heading households will be ensured; • Income Restoration activities will be planned with active involvement of women; need assessment for livelihood activities and skill development of livelihood activities will be conducted separately for women members, poor women, female-headed households, and elderly women. • Assistance for affected non-land assets and other allowances will be given to both men and women from the households; Specific attention will be provided for the poor women headed households, elderly women in paying the compensation on time and developing suitable livelihood activities for elderly and poor female headed households; • Separate discussion with women members, female headed households, elderly women, ethnic minority household for selection of relocation sites, housing structure, and other social infrastructures, including timing of relocation; • Special measures will be taken in the relocation of elderly, disabled and female headed households in terms of location of new site together with their extended families/relatives. • Disaggregated monitoring indicators by gender will be developed for monitoring of Social benefits, economic opportunities, livelihood program, and resettlement activities.

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Appendix 1

Draft Terms of Reference for Resettlement Planning

The Rural Road Development Project (RRDP) will be a Multitranche Financing Facility with 2 tranches implemented over 7 years and will improve 1274 km of roads. These are existing roads7 with carriageways ranging from 4m to 7m which will be widened/improved to 6m to 7m. In total, the Multitranche project passes through 20 districts comprising a total population of 18 million.

As these are existing roads and the main transport route in most locations, there is considerable ribbon development along them, most particularly in the densely populated Java corridor. Preliminary surveys for land acquisition requirements, based on the final ROW requirements8, indicate that about 2.7 million m2 of land and potentially 2,722 housing structures (approximately 10,888 people) will be impacted. Preliminary surveys show that 73 percent of household structures are permanent, constructed of brick and/or timber, 27 percent semi permanent dwellings, constructed mainly of timber and thatching and 44 percent are less than 36 m2. Seventy-three percent of residents have lived in their house for more than five years but only 20 percent of owners had an official land title deed. LARAP studies undertaken during loan implementation will update these estimates and provide impact assessment of other affected assets including telecommunications lines and electrical power lines, irrigation systems, roads, sheds, walls, graves and trees.

The RRDP multi-tranche programme of works, will implement sub-projects which are approved and ‘ready’ in the first tranche for implementation in the first three years of the programme. A key factor in determining readiness was the degree of resettlement impacts and those selected for tranche 1 are sub-projects where resettlement impacts are the least severe. Bases on preliminary design of the 444.5 km of road to be improved during tranche 1, it appears only one link will impact structures (63 AH) while several links will require land acquisition (approximately 475 thousand m2 of land). Therefore, the categorization of resettlement plan activity for the RRDP tranche 1 is "Category A - significant" and requires a full resettlement plan. Short resettlement plans may suffice for tranche 1 project roads where only land acquisition is needed. The need for full and short RP will be updated during loan implementation as detailed design information becomes available.

No civil works will begin until resettlement plans have been finalized and compensation, relocation and other entitlements have been approved.

Tranche 1 resettlement activity will include internal and external monitoring and evaluation. The MPW will engage a qualified domestic monitor to carry out independent resettlement monitoring and evaluation. The monitor will ascertain whether APs have (i) received their full entitlements on time and (ii) fully restored their livelihoods, income levels and living standards. The monitor will conduct a baseline survey prior to resettlement, semi-annual investigations during resettlement and annual survey updates for two years after the completion of resettlement. The household survey will include a representative number of those severely affected by loss of land, those losing housing, and those classified as economically vulnerable. The monitor will provide ADB and MPW with copies of the monitoring and evaluation reports twice a year during resettlement implementation and once a year after resettlement completion.

7 There are about 60 km of new alignment being considered in Central Java. 8 Initial estimates of resettlement impacts assume that construction activities will have limited impact beyond the preliminary design ROW requirements. This will need to be verified during detailed design.

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A second tranche has been identified as sub-projects but will require additional studies, including those for land acquisition and resettlement and any new alignments.

Objectives

The study objective is to prepare a Resettlement Plan (RP) for tranche 1 of the RRDP and update resettlement estimates for tranche 2.

The Resettlement Framework has sets out broad strategies to mitigate adverse effects and to maintain living standards of those affected by land acquisition and any other resettlement effects. The current study will further define the parameters for the entitlements package for those affected, the institutional framework, mechanisms for consultation and grievance resolution, the timeframe and cost estimates.

The agreed entitlements package will include both compensation and measures to restore the economic and social base for those affected. It will address the policy objectives of the Bank and of the government for land acquisition and resettlement.

Time Frame

The full RP for tranche 1 will be completed during loan implementation and before the commencement of civil works. It is anticipated that tranche 1 resettlement activities will take 8 months to complete.

Personnel

The study requires one international consultant (4 person months) together with five local assistants (8 person months) for survey work. The local consultant team will include a senior resettlement specialist with extensive experience in carrying out Land Acquisition and Resettlement Plan (LARAP) activities.

The consultants will work in close cooperation with the Construction Supervision Consultant and the Executing Agencies, who will provide personnel to assist in the preparation of the RP.

Tasks for Resettlement Team

i) Document any steps taken to reduce land acquisition and resettlement impacts through changes in the alignment or scope of project components. Prepare options for discussion with other team members to minimize resettlement effects through modifying the preliminary and final technical designs. ii) Conduct participatory rapid appraisal (PRA) in the tranche 1 project area. Update and verify tranche 2 resettlement estimates. iii) Identify key stakeholders and consult closely with them on their views about the project and resettlement effects, including the people likely to experience resettlement effects. Identify any vulnerable groups (for example the very poor, those without formal title, households headed by women, indigenous peoples, isolated groups, the disabled) who might require special assistance and consult with them. iv) Decide whether a process of social preparation is required for some or all of the people affected in order to build their capacity to address resettlement issues. If so, design a social preparation phase as part of the RP preparation. If not, choose methods to foster the participation of all key stakeholders in the process of resettlement planning and implementation. v) Conduct a census of all of the people potentially affected by RRDP tranche 1 activity, to determine the scope and magnitude of likely resettlement effects, and to list likely losses. Suggest a cut-off date for entitlements.

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vi) Conduct a socioeconomic survey of a sample of 20 percent of the people affected. Establish a baseline of incomes and expenditures, occupational and livelihood patterns, use of resources, arrangements for use of common property, social organization, leadership patterns, community organizations, and cultural parameters. vii) Consult with the agencies responsible for land acquisition and resettlement on the Bank policy on Involuntary Resettlement. Review the laws, regulations and directives of the government that apply to land acquisition and resettlement to determine whether they would allow full restoration of living standards and livelihoods, including for those without formal title. In this review, consider the scope of the power of eminent domain, the method for valuing assets, the timing and method for paying compensation, the legal and administrative procedures applicable, land titling and registration procedures, and the framework for environmental protection. viii) Update the entitlements matrix listing all likely effects, both of permanent and of temporary land acquisition. Establish criteria for the resettlement eligibility of affected households. Prepare standards for compensation and restoration of the social and economic base of the people affected to replace all types of loss. Prepare a formula for setting replacement values for assets lost, including land. Establish options for culturally acceptable replacements for lost services, cultural sites, common property or access to resources for subsistence, income or cultural activities. ix) Prepare options for relocation and for income restoration which build upon the existing social, economic and cultural parameters both of the people affected and of any host populations. Make special provision for any vulnerable groups, including those without legal title to assets. Provide for relocation costs, lost income and income support during transition. Where appropriate, prepare relocation plans including selection and preparation of relocation sites. Make provisions for landownership, tenure and transfer, and access to resources. Where incomes must be restored, provide for needs assessment, employment generation and credit disbursement. Where affected people are to change their occupation, provide for training and vocational support mechanisms. Review the likely environmental impact of the resettlement process, and build in plans to mitigate any adverse environmental effects. x) Prepare a framework for participation of people affected in the finalization of project component designs, entitlements and the implementation of land acquisition and resettlement. Prepare special measures for consultation with any vulnerable groups. Specify mechanisms for the resolution of grievances and an appeals procedure. xi) Prepare an institutional framework that designates responsibilities to prepare the detailed assets inventories, provide compensation, undertake relocation work, take responsibility for income restoration, supervise, manage and monitor the implementation of land acquisition and resettlement. This includes the environmental management and monitoring for the resettlement process. Recommend an institutional strengthening strategy and or formation and training of a resettlement unit within the executing agency, if required. xii) Prepare a monitoring and evaluation plan, identifying the responsibilities, time frame and some key indicators. This will include ongoing monitoring by key agencies supplemented by an independent evaluation. Specify the time frame for monitoring and reporting. xiii) Prepare a time frame and implementation schedule for land acquisition and resettlement in conjunction with the agreed implementation schedule for project components, showing how affected people will be provided for before demolition begins. xiv) Prepare an indicative budget. Identify indicative land acquisition and resettlement costs. Prepare budgetary allocation and timing. Specify sources of funding and approval process. Prepare an annual budget estimate for resettlement by major category of expenditure.

Descriptions for Full and Short Resettlement Plan

The screening criteria based on the degree of resettlement impacts are:

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• Significant - as a result of the subproject, 200 or more people (approximately 47 households) will experience major impacts, that is, being physically displaced from housing, or losing 10 per cent or more of their productive (income-generating) assets. A full resettlement plan will be required;

• Not significant - as a result of the subproject, fewer than 200 people will be physically displaced from housing or lose less than 10 per cent of their productive (income-generating) assets. A short resettlement plan will be required; or

• No resettlement effect - the subproject does not require temporary or permanent land acquisition, and there are no impacts involving the loss of land, structures, crops and trees, businesses or income. No resettlement plan is required.

The same essential elements must be addressed in a full and short RP; however, the level of detail will differ depending on the level of impact.

Outline of Full Resettlement Plan Topic Contents Scope of land • Describe, with the aid of maps, scope of land acquisition and why it is acquisition and necessary for main investment project. resettlement • Describe alternative options, if any, considered to minimize land acquisition and its effects, and why remaining effects are unavoidable. • Summarize key effects in terms of land acquired, assets lost, and people displaced from homes or livelihoods. • Specify primary responsibilities for land acquisition and resettlement. Socioeconomic • Define, identify and enumerate people to be affected. information • Describe likely impact of land acquisition on people affected, taking into account social, cultural, and economic parameters. • Identify all losses for people affected by land acquisition. • Provide details of any common property resources. • Specify how project will impact on the poor, indigenous people, ethnic minorities, and other vulnerable groups, including women, and any special measures needed to restore fully, or enhance, their economic and social base. Objectives, • Describe purpose and objectives of land acquisition and resettlement. policy • Describe key national and local land, compensation and resettlement policies, framework, and laws, and guidelines that apply to project. entitlements • Explain how Bank Policy on Involuntary Resettlement will be achieved. • State principles, legal and policy commitments from borrower executing agency for different categories of project impacts. • Prepare an eligibility policy and entitlement matrix for all categories of loss, including compensation rates. Consultation, • Identify project stakeholders. and • Describe mechanisms for stakeholder participation in planning, management, grievance monitoring, and evaluation. redress • Identify local institutions or organizations to support people affected. participation • Review potential role of nongovernment organizations (NGOs) and community-based organizations (CBOs). • Establish procedures for redress of grievances by people affected. Relocation of • Identify options for relocation of housing and other structures, including housing and replacement housing, replacement cash compensation, and self selection. settlements • Specify measures to assist with transfer and establishment at new sites. • Review options for developing relocation sites, if required, in terms of location, quality of site, and development needs. • Provide a plan for layout, design, and social infrastructure for each site. • Specify means for safeguarding income and livelihoods. • Specify measures for planned integration with host communities. • Identify special measures for addressing gender issues and those related to vulnerable groups. • Identify any environmental risks and show how these will be managed and monitored. Income • Identify livelihoods at risk.

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restoration • Develop an income restoration strategy with options to restore all types of strategy livelihoods. • Specify job opportunities in a job creation plan, including provisions for income substitution, retraining, self-employment and pensions, where required. • Prepare a plan to relocate and restore businesses, including income substitution, where required. • Identify any environmental risks and show how these will be managed and monitored. Institutional • Identify main tasks and responsibilities in planning, negotiating, consulting, framework approving, coordinating, implementing, financing, monitoring and evaluating land acquisition and resettlement. • Review the mandate of the land acquisition and resettlement agencies and their capacity to plan and manage these tasks. • Provide for capacity building, including technical assistance, if required. • Specify role of NGOs, if involved, and organizations of APs in resettlement planning and management. Resettlement • Identify land acquisition and resettlement costs. budget • Prepare an annual budget and specify timing for release of funds. and financing • Specify sources of funding for all land acquisition and resettlement activities. Implementation • Provide a time schedule showing start and finish dates for major resettlement schedule tasks. • Show how people affected will be provided for before demolition begins. Monitoring and • Prepare a plan for internal monitoring of resettlement targets, specifying key evaluation indicators of progress, mechanisms for reporting, and resource requirements. • Prepare an evaluation plan, with provision for external, independent evaluation of extent to which policy objectives have been achieved. • Specify participation for people affected in M&E.

Outline of Short Resettlement Plan Topic Contents Scope of land •Describe alternative options, if any, considered to minimize land acquisition acquisition and and its effects, and why the remaining effects are unavoidable. resettlement •Summarize key effects in terms of land acquired, assets lost, and people displaced from homes or livelihoods. Objectives, • Describe key national and local land, compensation and resettlement policies, policy laws, and guidelines that apply to project. framework, and • Explain how Bank policy on Involuntary Resettlement will be achieved entitlements Consultation, • Describe consultation processes and procedures for redress of and grievances. grievance redress participation Compensation, • Describe arrangements for valuing and disbursing compensation. relocation, and • Describe arrangements for housing relocation, including transfer and income establishment. restoration • Describe income restoration measures to be implemented. • Identify any environmental risks, describe management and monitoring steps. Institutional • Identify main tasks and responsibilities in planning, managing framework and monitoring land acquisition and resettlement. Resettlement • Identify land acquisition and resettlement costs and funding budget and sources. financing Implementation • Provide time schedule showing how people affected will be schedule provided for before demolition begins. Monitoring and • Specify arrangements for M&E. evaluation

Survey Requirements for RP Preparation

Detail 1. The census and detailed measurement survey (DMS) of lost assets will collect data Measurement on the affected assets from 100% of APs following detailed engineering design a Survey 2. The data collected during the DMS will constitute the formal basis for determining AP entitlements and levels of compensation. For each AP, the scope of the data will

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include: Total and affected areas of land, by type of land assets; Total and affected areas of structures, by type of structure (main or secondary) Legal status of affected land and structure assets, and duration of tenure and ownership; Quantity and types of affected crops and trees; Quantity of other losses, e.g., business or other income, jobs or other productive assets; estimated daily net income from informal shops; Quantity/area of affected common property, community or public assets, by type; Summary data on AHs, by ethnicity, gender of head of household, household size, 3. Data will be gender and indigenous peoples disaggregated. 4.It will include gender analysis and data will be gender and ethnic minority disaggregated. 5. If there are new categories of APs and/or losses identified during the DMS (other than those described in the entitlement matrix), the entitlements will be derived in a mutually acceptable way in accordance with Government’s and ADB’s policy and guidelines. 6. Primary and secondary source of household income viz-a-viz poverty line, income level, whether household is headed by women, elderly, disabled, poor or indigenous peoples;. 7.Identify whether affected land or source of income is primary source of income; and 8. AP knowledge of the subproject and preferences for compensation and, as required, relocation sites and rehabilitation measures. 8. Socioeconomic 1.At a minimum, the socioeconomic survey (SES) will collect information from a sample Survey of 10% of affected people and 20% of severely affected AHs, disaggregated by gender and ethnicity. 2.The purpose of the socioeconomic survey is to provide baseline data on AHs to assess resettlement impacts, and to be sure proposed entitlements are appropriate, and to be used for resettlement monitoring. 3.The scope of data to be collected includes: Household head: name, sex, age, livelihood or occupation, income, education and ethnicity; Household members: number, livelihood or occupation, school age children and school attendance, and literacy, disaggregated by gender; Living conditions: access to water, sanitation and energy for cooking and lighting; ownership of durable goods; and D. Access to basic services and facilities. Replacement 1.The replacement cost survey (RCS) will be done in parallel with DMS and SES Cost Survey activities by collecting information from both secondary sources and primary sources (direct interviews with people in the affected area, material suppliers, house contractors, local governments), and from both those affected and those not affected. 2.Compensation rates will be continuously updated to ensure that APs receive compensation at replacement cost at the time of compensation payment.

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Appendix 2

Draft RRDP Resettlement Implementation Schedule Activities Timing MPW to designate Ministry staff for positions in the PMU, as well staff Month 1 responsible for RRDP resettlement program. MPW and staff responsible for resettlement program to oversee Month 1 establishment of other institutional arrangements including Resettlement Sub-Committees, Grievance Committees (GC) and establish grievance redress procedures MPW and staff responsible for resettlement program to establish Month 1 (ongoing) procedures for internal monitoring of resettlement program, and start program of regular monthly reporting. Staff responsible for resettlement program with assistance from PSC to Month 1 (ongoing) conduct training needs assessment, develop training program and initiate training activities. MPW to appoint local consultant as Independent Monitor and submit Month 2 (ongoing) regular monitoring reports Staff responsible for resettlement program with assistance from PSC to Month 2 (ongoing) develop and initiate implementation of the Information Dissemination and Consultation Program. Conduct consultations with local officials and APs to inform them about a) procedures for Detailed Measurement Survey and Socio-Economic Survey, b) cut-off date and official list of eligible APs, c) grievance redress. Staff responsible for resettlement program to conduct Detailed Months 3 and 4 Measurement Survey of 100% of APs, Socio-Economic Survey of 100% (or soonest following severely affected APs and at least 20% of other APs; and, update detailed engineering) computerized databases for Detailed Measurement Survey and Socio- Economic Survey. Staff responsible for resettlement program to compile official list of eligible Month 4 APs and disclose to APs (and Inter-ministerial Resettlement Committee, Resettlement Sub-Committees and local authorities) Staff responsible for resettlement program in collaboration with local Month 3 offices to conduct Replacement Cost Study; prepare schedule of compensation rates; and, submit to Inter-ministerial Resettlement Committee for review Inter-ministerial Resettlement Committee to approve schedule of Month 4 compensation rates for RRDP. Staff responsible for resettlement program to organize a series of Months 5 and 6 community and focus group consultations with APs and other stakeholders about a) scope of land acquisition and resettlement impacts, b) entitlements and compensation rates, c) relocation, income restoration and rehabilitation strategies to assist APs. Staff responsible for resettlement program to update draft Final RP and Month 7 involve MPW and Inter-ministerial Resettlement Committee. Staff responsible for resettlement program to publicly disclose draft Final Month 7 RP to APs. Staff responsible for resettlement program to submit draft Final RP to Month 8 MPW, Inter-ministerial Resettlement Committee and ADB for approval. Staff responsible for resettlement program to integrate data and Month 9 suggestions from APs, local authorities, MPW, Inter-ministerial

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Activities Timing Resettlement Committee and ADB into updated and revised Final RP and submit for approval of the RP. Staff responsible for resettlement program and MPW to disclose publicly Month 10 the approved Final RP; ADB to upload the approved Final RP on ADB Resettlement Website. Staff responsible for resettlement program to negotiate compensation Months 11 and 12 packages and sign contract with APs; IMO to monitor negotiation process. Staff responsible for resettlement program in collaboration with Months 11 and 12 Resettlement Sub-Committees to acquire replacement land, as required, for individual plots and/or group resettlement site(s). GRC to hear and resolve any complaints or grievances of APs; IMO to Month 11 (ongoing) monitor grievance redress process. Staff responsible for resettlement program in collaboration with Month13 Resettlement Sub-Committees to allocate replacement land, as required, and pay cash compensation and allowances to APs; IMO to monitor process Staff responsible for resettlement program in collaboration with Month 13 (ongoing) Resettlement Sub-Committees to initiate income restoration and other rehabilitation measures provided in the RP to assist APs to restore pre- project living standards and income levels; IMO to monitor process. APs to rebuild houses and/or business premises on remaining land Months 13 - 16 behind COI and/or on new sites outside ROW; and, remove from the COI (ongoing) (and ROW, as relevant). Staff responsible for resettlement program in collaboration with Months 13 - 16 Resettlement Sub-Committees to undertake the development, as (ongoing) required, of resettlement sites, including sub-division into residential and agricultural plots and provision of basic services (roads, water supply, sanitation, drainage, electricity, etc.). Staff responsible for resettlement program/MPW to confirm to Month 16 (ongoing) Resettlement Sub-Committees notice of possession of land in the COI and final removal of APs from COI (and ROW, as relevant). MPW to instruct IMO to undertake completion report of monitoring Month 16 MPW and Staff responsible for resettlement program to compile Terms of Month 28 (1 year after Reference and initiate Post Implementation Evaluation Study by IMO completion)

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Appendix 3

Summary of Road Links and Conditions

West Java Province

Link 147.1 (Pamengpeuk – Bts Garut/Tasikmalaya (Ci)) has 29.1 km length, 4.6 m road width and 8 – 10 m existing ROW. Some part of length has 20 m of width (Sta 12+000 – Sta 19+000 and Sta 20+000 – Sta 26+000). This link lied in Garut District, Pamengpeuk Subdistrict and going through some village namely Paas, Sinarbakti, Pamengpeuk, and Mancagahar. The condition of topography varies from flat to rolling terrain, and types of land use mostly is residential area, ‘low to medium density’, and plantation and agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 163.000 m2 (16.3 Ha) for land acquisition and affected 777 unit of houses with total cost estimate up to Rp. 120.400.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A)

Link 147.2 (Bts Garut/Tasikmalaya (Cikaengan)- Cip.) has 12.8 km length, 6.1 m road width and 12 m existing ROW. In some location has 10 m ROW (Sta 11+000 – Sta 12+000). This link lied in Garut District, Cibalong Subdistrict and going through some village namely Mekarsari, Karyasari, Karyamukti, Karyasagara and Sancang. The condition of topography varies from flat to rolling terrain, and types of land use is residential area, mostly as ‘low density’, and plantation and agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 106.000 m2 (10.6 Ha) for land acquisition and affected number of houses 261 units with total cost estimate up to Rp. 120.400.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 148 ( Cipatujah – Kelapa Genep.) has 41.5 km length, 4.7 m road width and average 10 m existing ROW. This link lied in Tasikmalaya District, Cikalong Subdistrict and going through some village namely Cikalong, Kelapa Genep, Sindang Jaya and Cimanuk. The condition of topography is mostly flat, except in some location between Sta 37+000 – Sta 39+000 is rolling terrain, with land use form is residential area, as ‘low density’, and in some location as plantation and agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 426.000 m2 (42.6 Ha) for land acquisition and affected number of houses 1441 units with total cost estimate up to Rp. 157.853.333.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A). 12.1.2 Central Java Province

Link 802 (Ayah - Karang Bolong) has 17.1 km length, 5.0 m road width and average of existing ROW is 13.5 m, but in Sta 10+000 – Sta 16 + 000 only has 8.0 m of ROW. This link lied in Kebumen District, and pass through Ayah and Buayan Sub District, and some village such as Srati, Pasir, Jintung,, Banjaraja, Argosari, Kalipoh and Ayah (Ayah Sub District) and then Karang Bolong and Jladri village (in Buayan Sub District). The condition of topography is rolling terrain, with land use residential area, as low density and other land use as forest and agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 148.000 m2 (14.8 Ha) for land acquisition and affected number of houses 322 units with total cost estimate up to Rp. 33.160.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 803 (Karang Bolong - Putureja) has 42.8 km length, 4.7 m road width and average of existing ROW is 11.5 m, but in Sta 0+000 – Sta 5 + 000 has 8.0 – 10.0 m of ROW. This link lied in 2 (two)

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District Kebumen and Purworejo District, and pass through 9 (nine) Sub District namely Puring, Petanahan, Klirong, Bulus Pesantren, Ambal Mirit, Grabag, Ngompol and Purwodadi Sub District. Total village number going through are 47 (forty seventh). The condition of topography is flat, with land use residential area, as ‘low - medium density’ and dominated by agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 358.700 m2 (35.87 Ha) for land acquisition and affected number of houses 283 units with total cost estimate up to Rp. 76.625.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 127 (Giriwoyo - Duwet) has 27.3 km length, 5.4 m road width and average of existing ROW is 24.0 m. This link lied in Wonogiri District, and pass through Giritontro Sub District, and some village such as Giriwoyo and Pucanganom. The condition of topography is rolling terrain, with land use residential area, as ‘low – medium density’ and dominated by plantation area. Related to the proposed road betterment with 20 m of ROW, this road is not required for land acquisition (the detail are attached). Base on ADB and Indonesia policy for this link is not required LARAP study (Category C).

Link 109 (Giriwoyo - Glonggong) has 6.6 km length, 6.6 m road width and average of existing ROW is 24.0 m. This link lied in Wonogiri District and passing through at 3 (three) Sub District namely Pracimantoro, Giritontro, and names of village going through such as Suci, Sambiroto, Pracimantoro, Giriwoyo, Sejati, Platarejo, Sirnoboyo. The condition of topography is mostly rolling terrain, with land use residential area, as ‘low density’ and dominated by plantation area. Related to the proposed road betterment with 20 m of ROW , this link were not needed for land acquisition (the detail are attached). Base on ADB and Indonesia policy this link is not required LARAP study (Category C).

Jogyakarta Province

Link 044 (Galur - Conggot) has 23.9 km length, 4.5 m road width and average of existing ROW is 11.5 m, but in Sta 15+000 – Sta 20 + 000 still has 20.0 m of ROW. This link lied in Kulon Progo District, and pass through 3 (three) Sub District namely Panjatan, Temon and Wates. Some village is going through such as Garongan, Plered Kidul, Glagah, Jangkaran dan Karang Wuni. The condition of topography is mostly flat, with land use residential area, as low – medium density and dominated by agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 190.000 m2 (19.0 Ha) for land acquisition and affected number of houses 155 units with total cost estimate up to Rp. 31.373.333.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 050 (Parang Tritis – Bts Kab. Gunung Kidul) has 0.7 km length, 5.1 m road width and average of existing ROW is 10.0 m. This link lied in Bantul and going through Kretek Sub District and village of Parang Tritis. The condition of topography is mostly flat, with land use dominated by residential area, as low. Related to the proposed road betterment with 20 m of ROW estimated needed 19.000 m2 (1.9 Ha) for land acquisition and affected number of houses 8 units with total cost estimate up to Rp. 1.163.333.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required simple LARAP study (Category B).

Link 501 (Girijati – SPG 020) has 13.7 km length, 5.6 m road width and average of existing ROW is 9.0 - 10.0 m. This link lied in Gunung Kidul District, and passing through 3 (three) Sub District namely Panggung, Purwosari and Saptosari. Some village is going through such as Giriharjo, Girimulyo, Giriwungu, Giriasih, Girijati, Giritirto, Jetis, Monggol, Planjan. The condition of topography is mostly rolling terrain, with land use residential area, as low density and dominated

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by plantation area. Related to the proposed road betterment with 20 m of ROW estimated needed 144.000 m2 (14.0 Ha) for land acquisition and affected number of houses 241 units with total cost estimate up to Rp. 33.680.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 052 (Baron – Tepus) has 14.6 km length, 4.5 m road width and average of existing ROW is 8.0 m. This link lied in Gunung Kidul District, and passing through Tanjung Sari Sub District with village such as Banjarrejo and Kemadang. The condition of topography is mostly rolling terrain, with land use residential area, as ‘low density’ and dominated by plantation area. Related to the proposed road betterment with 20 m of ROW estimated needed 180.000 m2 (18.0 Ha) for land acquisition and affected number of houses 121 units with total cost estimate up to Rp. 27.680.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 052 (Tepus – Jepitu – Jeruk Wudel) has 18.2 km length, 4.7 m road width and average of existing ROW is 8.0 m. This link lied in Gunung Kidul District, and passing through at 2 (two) Sub District GiriSubo and Tepus with village such as Balong, Jepitu, Purwodadi. The condition of topography is mostly rolling terrain, with land use residential area, as ‘low density’ and dominated by plantation area. Related to the proposed road betterment with 20 m of ROW estimated needed 228.000 m2 (22.8 Ha) for land acquisition and affected number of houses 679 units with total cost estimate up to Rp. 71.120.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 055 (Jeruk Wudel – Baron (Rongkop) has 9.5 km length, 5.0 m road width and average of existing ROW is 8.0 m. This link lied in Gunung Kidul District, and passing through Girisubo Sub District with village such as Jeruk Wudel and Nglindur. The condition of topography is mostly rolling terrain, with land use residential area, as ‘low density’ and dominated by plantation area. Related to the proposed road betterment with 20 m of ROW estimated needed 120.000 m2 (12.0 Ha) for land acquisition and affected number of houses 315 units with total cost estimate up to Rp. 37.200.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

East Java Province

Link 065 (Pacitan – Glonggong) has 40.8 km length, 7.0 m road width and average of existing ROW is 11.0 m. This link lied in Gunung Kidul District, and passing through at 3 (three) Sub District Donorejo, Punug, Peringkuku with village such as Belah, Wareng, Punung, Sooko, Peringkuku dan Dadapan. The condition of topography is mostly rolling terrain, with land use residential area, varies as ‘low density’ to high density, espeally in Sta 4 +000 – Sta 5 + 000 and Sta 12 + 000 – Sta 13 +000 and Sta 19 +000 – Sta 20 + 000, and dominated by plantation and forest area. Related to the proposed road betterment with 20 m of ROW estimated needed 306.000 m2 (30.6 Ha) for land acquisition and affected number of houses 773 units with total cost estimate up to Rp. 97.840.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 511 (Pacitan – SPG 160.1) has 31.0 km length, 4.0 m road width and average of existing ROW is 24.0 m, but in some location the existing of ROW is 10.0 m (Sta 0 +000 – Sta 3 + 000). This link lied in Pacitan District, and passing through at 3 (three) Sub District namely Pacitan, Kebonagung, Ngadirojo, with village such as Ploso, Kayen, Karanganyar, Sidomulyo, Hadiwarno. The condition of topography is varies from flat to rolling terrain, with land use residential area, varies as ‘low density’ to high density, and dominated by agriculture and plantation area. Related

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to the proposed road betterment (limited for 9.0 km of road length of survey result; the others part of road is not passable) with 20 m of ROW estimated needed 30.000 m2 (3.0 Ha) for land acquisition and affected number of houses 112 units with total cost estimate up to Rp. 11.960.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 512 (Panggul – Prigi) has 56.0 km length, 4.0 m road width and average of existing ROW is 10.0 m but in some location has already 24.0 m of ROW. This link lied in Trenggalek District, and passing through at 2 (two) Sub District Panggul and Watulimo with village such as Nglebeng, Banjar, Karangbadu, Prigi, and Tasikmadu. The condition of topography is mostly rolling terrain, with land use residential area, varies from ‘low density’ to ‘high density’ and dominated by plantation, agriculture and forest area. Related to the proposed road betterment (limited for 9.0 km of road length of survey result; the others part of road is not passable) with 20 m of ROW estimated needed 30.000 m2 (3. Ha) for land acquisition and affected number of houses 112 units with total cost estimate up to Rp. 11.960.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 097 (Talok – Druju – Sendang Biru) has 41.5 km length, 4.9 m road width and average of existing ROW is 8.0 m but at some location (Sta 0+000 – Sta 5 + 000) has 14.0 m of ROW. This link lied in Malang District, and passing through at 3 (three) Sub District namely TUren, Gampit, Sumbermanjing Wetan with village such as Argotirto, Druju, Sumbermanjing Wetan, Tambakrejo. The condition of topography is mostly rolling terrain, with land use residential area, varies as ‘low density’ to high density and dominated by plantation and agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 448.000 m2 (44.8 Ha) for land acquisition and affected number of houses 1460 units with total cost estimate up to Rp. 161.626.667.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 098 (Turen – Bts Kab. Lumjang) has 36.7 km length, 4.0 m road width and average of existing ROW is 12.0 – 14.0 m.. This link lied in Malang District, and passing through at 2 (two) Sub District Talok and Tirtoyudo with village such as Talok and Tirtoyudo. The condition of topography is mostly rolling terrain, with land use residential area, varies from ‘medium density’ to ‘high density’ and dominated by plantation area. Related to the proposed road betterment with 20 m of ROW estimated needed 30.000 m2 (3. Ha) for land acquisition and affected number of houses 893 units with total cost estimate up to Rp. 97.666.667.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

West Kalimantan Province

Link 024 (Sosok - Tayan) has 49.0 km length, 5.7 m road width and the existing of ROW is varies between 8.0 -18.0 m. This link passing through at 13 (Thirteen) village namely Demabo, Tamiangtaba, Senyabang, Kebadu, balai Karangan, Hilir, Temiang Mali, Mak Kawing, Cempedak, Kawat, Tayan Hilir. The condition of topography is mostly rolling terrain except Sta 41 + 000 – Sta 42 + 000 and Sta 47 + 000 – Sta 49 + 000 are flat area, with land use residential area, mostly as ‘low density’, except at Sta 13 +000 – Sta 14 + 000; Sta 24 + 000 – Sta 26 + 000 and Sta 27 + 000 – Sta 209 + 000 are medium density, and dominated by plantation area, except at Sta 22 + 000 – Sta 25 + 000; Sta 27 + 000 – Sta 28 + 000 and Sta 46 + 000 – Sta 47 + 000 are agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 426.000 m2 (42.60 Ha) for land acquisition and affected number of houses 876 units with total cost estimate up to Rp. 92.153.333.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

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Link 025.1 (Tanjung - Kembayan) has 36.0 km length, 6.0 m road width and existing of ROW is varies between 12.0 - 14.0 m. The condition of topography is mostly rolling terrain, with land use residential area, varies as ‘low density’, except at Sta 14 +000 – Sta 15 + 000 and Sta 33 + 000 – Sta 36 + 000 are medium density, and dominated by plantation area. Related to the proposed road betterment with 20 m of ROW estimated needed 368.000 m2 (36.8 Ha) for land acquisition and affected number of houses 481 units with total cost estimate up to Rp. 56.880.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 025.2 (Kembayan – Balai Karangan) has 36.0 km length, 6.0 m road width and existing of ROW is varies between 12.0 - 18.0 m. The condition of topography is mostly flat except Sta 3 + 000 – Sta 4 + 000 is rolling terrain , with land use residential area, varies as ‘low density’ to high density, and dominated by plantation area. Related to the proposed road betterment with 20 m of ROW estimated needed 268.000 m2 (26.8 Ha) for land acquisition and affected number of houses 124 units with total cost estimate up to Rp. 23.293.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 026 (Balai Karangan - Entikong) has 19.3 km length, 5.9 m road width and average existing of ROW between 12.0 - 14.0 m, except at Sta 11 + 000 – Sta 12 + 000 is 18,0 m of ROW The condition of topography is varies flat to rolling terrain , with land use residential area, varies as ‘low density’ to high density, and forest and plantation area. Related to the proposed road betterment with 20 m of ROW estimated needed 144.000 m2 (14.4 Ha) for land acquisition and affected number of houses 274 units with total cost estimate up to Rp. 29.146.667.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

Link 027 (Entikong – Bts Serawak) has 2.4 km length, 5.9 m road width and average existing of ROW is 12.0 m. The condition of topography is rolling terrain , with land use residential area, varies as ‘low density’ to medium density. Related to the proposed road betterment with 20 m of ROW estimated needed 44.000 m2 (4.4 Ha) for land acquisition and affected number of houses 168 units with total cost estimate up to Rp. 7.256.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required full LARAP study (Category A).

East Kalimantan Province

Link 530 (Malinau - Mensalong) has 29.0 km length, 6.0 m road width and average of existing ROW is 14.0 m but at some location (Sta 24+000 – Sta 29 + 000) has 12.0 -13.0 m of ROW. The condition of topography is mostly flat, with land use residential area, varies as ‘low density’, except at Sta 4 +000 – Sta 6 + 000 and Sta 25 + 000 – Sta 26 + 000 are medium density, and dominated by plantation. Related to the proposed road betterment with 20 m of ROW estimated needed 191.000 m2 (1.91 Ha) for land acquisition and affected number of houses 38 units with total cost estimate up to Rp. 22.140.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required simple LARAP study (Category B).

Link 531 (Mensalong –Sewuku) has 102.0 km length, 6.4 m road width and average of existing ROW is 14.0 – 16.0 m, except Sta 0+000 – Sta 1 + 000) has 9.0 m of ROW. This link lied in Nunukan District, and passing through at 3 (three) Sub District namely Lumbis, Sewuku and Nunukan with village such as Mensalong, Asap, Merayu, Tuwung, Sei Kunyit, Sekayak, Pembelingan and Sanur. The condition of topography is mostly rolling terrain, with land use residential area, varies as ‘low density’, and dominated by forest. Related to the proposed road betterment with 20 m of ROW estimated needed 535.000 m2 (5.35 Ha) for land acquisition and

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affected number of houses only 2 units with total cost estimate up to Rp. 53.633.333.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required simple LARAP study (Category B).

Link 533 (Simanggaris – Serudong) has 27.0 km length, and average of existing ROW is 20.0. This link lied in Nunukan District, and passing through Nunukan Sub District with village such as Serudong, Tujung, Sekikilan, Tinalang, Talang. The condition of topography is mostly rolling terrain, with land use dominated by forest. No residence in this area. Related to the proposed road betterment with 20 m of ROW , this link were not needed for land acquisition (the detail are attached). Base on ADB and Indonesia policy this link is not required LARAP study (Category C).

Link 527 (Tanjung Selor – Tanjung Palas) has 13.0 km length, 6.0 m road width and average of existing ROW is 14.0. This link lied in Tanjung Selor District, and passing through Palas Sub District with village such Siaga Parung, Timping, and Selor. The condition of topography is mostly rolling terrain, with land use dominated by forest except at Sta 11 +000 – Sta 12+000 is plantation area and Sta 12 +000 – Sta 13 + 000 is agriculture area. No residence in this area. Related to the proposed road betterment with 20 m of ROW estimated needed 78.000 m2 (7.8 Ha) for land acquisition and with total land cost estimate up to Rp. 7.800.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required simple LARAP study (Category B).

Link 528 (Tanjung Palas - Sekatak) has 88.0 km length, 6.4 m road width and average of existing ROW is 14.0. This link lied in Bulungan District, and passing through Palas Sub District with village such as Palas, Siaga Paling, Pingping. The condition of topography is mostly rolling terrain, with land use dominated by forest area. No residence in this area. Related to the proposed road betterment with 20 m of ROW estimated needed 528.000 m2 (52.8 Ha) for land acquisition and with total land cost estimate up to Rp. 52.800.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required simple LARAP study (Category B).

Link 529 (Sekatak - Malinau) has 99.0 km length, 6.0 m road width and average of existing ROW is 14.0 except at Sta 0+000 – Sta 1 +000 has 11.0 m ROW. This link lied in Malinau District, and passing through at 3 (three) Sub District namely West Malinau , Sesayang and Sekatak with village such as West Malinau, Simpayang, Sesayang, Sebawang, Muning, Putih, Bureu, Sedilun, Paru Bawah, Klising, Klembunan, Ujang, maritang, Bekilian and Sekatak Buji. The condition of topography is mostly rolling terrain, with land use dominated by forest area except Sta 0 + 000 – Sta 2 + 000 and Sta 13 + 000 – Sta 14 + 000 are agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 597.000 m2 (59.7 Ha) and affected number of houses 12 units with total cost estimate up to Rp. 60.660.000.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required simple LARAP study (Category B).

Link 529 (Jl Raja Pandita Malinau) has 8.5 km length, 5.2 m road width and average of existing ROW is 18.0 except at Sta 0+000 – Sta 1 +000 has 16.0 m ROW, Sta 8 +000 – Sta 8 + 500 has 20 m of ROW. This link lied in Malinau Town, and passing through Malinau Sub District with village such as Malinau, Pelita, Kanakan and Malinau Hulu. The condition of topography is mostly flat, with land use dominated by agriculture area. Related to the proposed road betterment with 20 m of ROW estimated needed 66.000 m2 (6.6 Ha) and affected number of houses 14 units with total cost estimate up to Rp. 7.746 667.000,- (the detail are attached). Base on ADB and Indonesia policy for this link required simple LARAP study (Category B).

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Appendix 4

Summary of Public Consultations Held in West Kalimantan

INTRODUCTION

Aim of the Report

This Report has been compiled to document the Public Consultation for road link (enclosed in subcomponent-2). This report summarises the discussions and comments from the community that will be affected by the Regional Road Development Project (RRDP), such as; NGOs, Provincial and the Kabupaten (regency) Government official.

The Methodology of the consultation process summarizes the environmental issues addressed and offers feedback received from participants...

Documentation of the Public Consultation covers environment and social assessment. Suggestion or inputs from participants were used to assist in the decision making process. The following format of public consultation was used to process the document;

• Reference of rule or regulations that were used as basement for consultation public execution. • The Consultation process, including the consultation plan, and schedule of the event. • the Consultation that has taken place, with whom and the purpose ; • Overview of the Regional Road Development Project, environment and social issue involved. • Identification of environmental and social issues in road link of West Kalimantan Corridors. • Summary of suggestion or comments received from participants.

Background

The Public Consultation and Information Disclosure is part of IEE compiling regulated in ADB Guidelines OM20 – Environmental and Social Considerations that require one Public Consultation for project with B category for during project preparation stage. The Guidelines of public consultation process in GOI rule, regulated in Decree of Head Bapedal No. 08 of 2000 concerning Community Involvement and Information Openness in the Process Environmental Impact Assessment. The Consultant involved of participants representing affected people (community that prediction hit impact), community leaders, NGOs, Provincial and Kabupaten Government (related institution). The Consultation concerning environmental and social assessment is meant to achieve the following;

• To evaluate of public response towards the project plan; • To make the public aware of road development project; • To evaluation the public response toward environmental, social issue and environment impact that caused by activity plan (civil works propose) of road development project. • To get input or suggestion from stakeholders about road condition, environment and social issue, works program of road development from Provincial or Kabupaten Government. • To ensure a broad range of perspectives are considered in any decision.

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• To get description about perception and public hope towards regional road development activity plan at their areas. • To ensure that the public is provided with opportunities to participate in the decision-making process and to influence decisions that will affect them.

CONSULTATION PROCESS

Process of public consultation activity planned with prepare list of road link at West Kalimantan corridor (in Table-1) and begun with send the letter to West Kalimantan Public Works Agency to help Consultant as facilitator (consultation execution place, prepare invitation to stakeholders). Public consultation is carried out after workshop activity at Pontianak on January 15, 2009 and announcement execution in provincial newspaper. In public consultation meeting, Consultant recommends the stakeholders that invited to follow consultation meeting among others:

• The Community leader as representative of community at Sambas regency, (Pemangkat district , Semparuk district, Tebas and Sebawi district ) Sanggau regency (Tayan Hilir district , Balai Karangan, Kembayan , Beduai, Sekayam and Entikong district) and Singkawang city (Selakau district, Singkawang Tengah and Singkawang Utara district) • Element of district government in Sambas regency, Sanggau regency and Singkawang city. • NGOs that concern in environment, HIV/Aids and social and cultural conditions in Sambas regency, Sanggau and Singkawang city. • A representative of the Bapedalda in the Province. • A representative of Bappeda (Planning of Development Board) in Province. • A representative of Public Works Agency in Sambas regency, Sanggau regency and Singkawang city. • A representative of Public Works Agency in Province. • A representative of P2JJ in Province. • A representative of Forestry Agency in Province.

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Table-1 List of Link at West Kalimantan Corridors

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The information of the public consultation was published in provincial newspapers (Borneo Tribune daily) before execution of consultation meeting. Advertisement announcing the commencement of the IEE (Annex A the copies of advertisement in Indonesia language), the background information document, the schedule consultation and venue of the consultation meeting also solicited public opinion about the IEE study and return addressed of the Consultant and Directorate General of Highway.

Feedback to Public and Overview of the RRDP

The Consultant carries out a consultation meeting; to explain the overview about RRDP that previous done consultation meeting opening by Public Works Official of West Kalimantan and act as moderator in the event is Head of P2JJ West Kalimantan.

The Matter for presentation and questionnaire is distributed during this consultation meeting execution. Background of road link conditions, activity plan of RRDP (civil works that proposed), land acquisition /resettlement and social (HIV, Aids and poverty) impact aspect is explained in this consultation meeting.

Public Consultation Meeting

According to ADB guidelines, the consultation public for project with B category enforceable once. This consultation meeting is carried out only 1 (one) province because time limitedness and followed by 36 participants from 40 participants that invited in this consultation execution. There some of participants cannot present because several problem among others; distance of Pontianak (location of meeting) enough far from address of participant and there are some road link at Sanggau regency is experiencing flood.

From 36 participants that present in this meeting covers ; Community leaders that represent of several regencies, 4 representative of NGOs ( Aman Kalbar NGOs, Titian NGOs, and KPA NGOs and VPN NGOs), government officials from village, district, regency and province.

List of participant in this meeting can seen in Annex C and photograph in this event can seen in Annex F. Environment and social potential issues as like ; land acquisition, land compensation, HIV /Aids, flood condition of location , increasing dust concentration during construction phase, road using by Crude Palm Oil Company that caused road damage are addressed in during execution of the meeting.

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ENVIRONMENTAL AND SOCIAL ISSUES ADDRESSED ATHEL MEETING

Execution of the public consultation belongs to successful if review from total of participant that present, although distance between participant residence and location of meeting far relative. The Participants wherein general very enthusiastic to give suggestion and conception about plan of road development at West Kalimantan region.

In this consultation meeting, the Consultant explain potential issue from environment aspect, resettlement and social aspect (HIV/Aids, poverty, Indigenous People) begins pre construction stage, construction stage and operation stage.

Potential impact that covers thein pre construction stage areas: land acquisition that needed for Right of Way (ROW), land compensation and resettlement . For construction stage cover ; disturbance of water balance ( runoff and current disturbance of drainage), increasing of dust concentration and noise , loss of vegetation in road side, traffic disturbance, while for operation stage covers ; traffic smoothness, increasing of regional economic growth, poverty reduction and increasing of HIV /Aids, and human trafficking.

Conception from Titian NGOs (NGOs that concern in environmental) give information about legal procurement material for road and bridge construction because during time there the Contractor that use wood that come from illegal logging, this matter necessary attention to prevent deforestation , while from KPA NGOs (Provincial Aids Committee ) to explain not agree that road development not affect and not necessary to take attention towards increasing of HIV/Aids because the numbers of people who are living with HIV /Aids always increase every day, so be requested to ADB take attention to this issues.

AMAN Kalimantan Barat NGOs ( West Kalimantan Indigenous People Networks) to explain about Indigenous people will be involved in development planning , executing and evaluating of the project for eliminating the conflict and socialization before that done before road construction is very important.

Conception and opinion that received from Community Leader and Government at district and Kabupaten (regency) level in general agree towards road development project execution at their area and necessary done socialization to community before construction execution so that doesn’t evoke negative impact to community . Some useful information from Public Works of Agency of Sambas regency there several road link that enough ROW and land acquisition has done by local government.

Conception or opinion of participants and response of Consultant in public consultation meeting can see in Annex E.

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SUMMARY OF THE COMMENTS

Community leaders, head of village , head of district and representative of Government regency and province also NGOs with total 36 persons in meeting in general to give opinion agree with road development plan.

Some of the comments in general explain about very important be done socialization to community for road development that needed land acquisition. Conception or comment about environment issue in general is flood condition at several road link , increasing of dust and noise level , road material use that come from illegal logging , traffic problem because road condition not proper ( damage and narrow) .

Comments about HIV and human trafficking from participants less jut except from NGOs that concern hit that thing.

From questionnaire (Annex D) that distributed during public consultation execution, so comment or conception of social aspect shall be as follows :

• Generally the communities have already heard about the program and they know from official /regional institution and from survey visit by consultant. • The communities had opinion that the road can be influenced on social life and economic standard for local communities. • Socialization /Consultation/Negotiation ; the Communities expected when socialization will be conduct , they want directly consultation in one meeting and discussion. The socialization will be conducted at village/sub district office. They want that all people affected by road widening /project and also community leader will invited on the meeting. • They inform that some important asset will be affected by project such as custom land /bengko , business area, water supply networks. • They inform that they agree with relocation but depend on location of resettlement.

Comments that can description about altitude of participant towards plan of road development as follows:

• Care of land acquisition and land compensation ( 100 % from 26 person) • Sensitive matter that can influence to road repair /development : • Land acquisition (land price) • Found of cemetery that hit. • Supporting and agree with plan of road development (100 %) • Public consultation activity benefit and socialization (100 %) • Hope with regional road development activity existence • Necessary to done socialization • There is no anomaly of budget and project quality. • Legality of material that used • To consider about environmental impact • Hope to involved as project works

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CONCLUSION

The Result of Public Consultation Meeting was positive with community considering that the road will bring significant economic benefit to an area, which has been ignored for along time. To get description about opinion and public aspiration, activity of public consultation can give profit to see how far immediacy of road link that proposed towards obstacle in construction execution preparation.

Public consultation result more constructive when carried out to road link that ready /chosen and there is no obstacle in land acquisition problem, environment and social problem that will disturb the construction execution.

From the public consultation meeting stakeholders at West Kalimantan Province are supportive to a road development plan proposed by RED. Several important things from this event is information for link SP3 Tanjung – Bts Serawak, land for need road widening has been released by local government with ROW 17 – 20 m. For other links according to information that got from meeting result in general community has agree carried out land acquisition provided before that works carry out necessary done socialization. Land acquisition problem usually more jut to proposed in this forum, while related to environment is information the happening of flood in several road link that belong in RRDP proposal, road and bridge material that come from illegal logging and dust pollution.

Road and bridge construction soon carried out, good road quality, transparent in budget is hope that proposed by several participants. Important recommendation necessary is proposed from result of public consultation the important has been done socialization in community before project implementation stage, execution of environment management and monitoring, minimize social problem can influence project execution.

COMMENTS OF PARTICIPANTS AND CONSULTANT’S RESPONSE IN PUBLIC CONSULTATION

Name of Suggestion/Comments Response from the Consultants Institution/Community Leader /NGOs. Mr. Usman , Sos Socialization activity is important to be held Socialization activities will be Head of Sajingan and consultant will invite and involve held on the next stage, in present District- Sambas community. We would like give appreciate time in feasibility study stage Regency that consultant already involve community so the information is limited only at early stage, so the community got identification of land acquisition . prepare/ready to accept the project. In the On the next stage we will carry next socialization, consultant will give out detail survey , LARAP study information the land will be affected by the will be done when the project project, and how about the project which require land acquisition and affected the land tenure? affected more than 40 KK.

The Community expect so that there is no ADB guideline mention that the relocation/resettlement , the community project avoid or minimize a usually less satisfied with new location /new resettlement/relocation effects, settlement because new location not good and if resettlement is and very far with location of their activity unavoidable, the bank help and minimum infrastructure. restore the quality of life and livelihood of those affected, and For link Galing – Tanjung no problem for minimal their life of affected land acquisition but that necessary people is same with before attention is vegetation that has by project constructed

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Community . Compensation for plant have If the project is carried out ,land specific regulation, the project will acquisition be whose responsibility ? give compensation according the regulation the Community in general can get the Generally the responsible of land project and ready to release when hit acquisition is provincial/regional project. government, the Bank limited give loan for physically aspect. Increasing of dust and noise will happen at construction stage and post construction This information is very helps stage necessary for attention. consultant to get description about community perception to project plan. In document IEE pine up about management about dust increasing impact in construction stage and post construction stage so that increasing dust preventable or reduced.

Mr. Sabib Several road link that RRDP proposed , This information is very useful Public Work Agency of the land for road development has ready, and help consultant to decide Sambas regency that begin from TanjungJunction 3 road link that ready with the land (Simpang 3) until Serawak border has need, and can be deliberation to ROW 17 – 20m. even plants and walk tranche 1 category. store (café) also get change to loss proper (fund from local government budget /APBD). When approved by ADB carried out detail design beforehand, Construction execution for rod link at before construction execution Sambas regency soon enforceable. begun

Including for bridge, and this Mr.Jumeno information is very useful for Head of Separuk Is bridge development also including in consultant to improve and District This project, because there are 4 bridge accommodate in preliminary (Pemangkat bridge, Besi bridge, Gersik design. Bridge and Separuk Market bridge), 2 bridge needed for arising grade and . another 2 (two) bridge needed for widening. Socialization activities will be held on the next stage, and Need socialization to community before present time in feasibility study construction execution especially road stage, the Consultant does public development activity that evoke of impact consultation once according to towards several cafes and kiosk found at ADB guidelines. roadside . The Policy ADB give more attention on compensation for livelihood.

Generally the responsible of land acquisition is provincial/regional In Semparuk district there are land of government, the Bank limited agriculture and oil palm plantation. Who give loan for physically aspect Is responsible if some of the agriculture and plantation land will be taken ?

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Mr. Hariyanto In the end link of Tebas there are many This information is very useful as Head of Tebas district community having economic activity as input for social impact kind in small business (cafes) along the road. They study IEE. are selling all kind of fruit. Who are going to responsible if they should moving another place? Their economic activity will be gone. I suggest to project not to remove them, so they can continue their economic work.

Mr. Kukuh T Sosok – Tayan to Entikong wll pass To value compensation payment, Head of Public Works through plantation and residence. Even the government have land Agency of Sanggau some village is closed with the road. Sub- acquisition Team who has regency District Office can’t conduct socialization capable to build other team has a although they know about the road task to value compensation, planning, but design is not yet clear. namely Team Land Price Value especially in Entikong, refer related regulation.

Recently at Entikong are will be expensive area. The land price became increased and the community do not want to get some land compensation with low price. For Balai Karangan - Entikong link in RRDP to proposed for Balai Karangan – Entikong link needed to widened. be widening because existing road not enough anymore due to increasing vehicle traffic such as bus from Malaysia to Indonesia This suggestion as input of the study. Land acquisition activity necessary stock taking and planned well, use reference towards same activity in previous land acquisition. This information is very useful for consultant to improve and In this feasibility study is necessary accommodate in preliminary considering at several point at link of design. Tanjung – Entikong that experiences flood with height 1.5 – 2 m IEE document explained about traffic disturbance impact that In construction stage necessary caused by construction activity considering traffic current from CPO vehicle so that does not evoke traffic disturbance. This suggestion by Consultant used as input for considered. Plan of border area by regency and Provincial government necessary be enclosed in study This suggestion by Consultant used as input for considered In this study necessary is studied enhanced of traffic accident impact.

Mr. Tedy E Bappeda agree and support about road This opinion is very helps Bappeda ( Planning of development program at West - Kalimantan consultant to get description Development Board) and several roads at Aruk about perception towards project of West Kalimantan still to want improvement and widening. plan.

the Impact in this environmental study is In IEE document management best be presented in the matrix form for and monitoring of impact be pre construction stage until post presented in the form of matrix construction stage (operation stage) for pre construction stage, construction stage and post

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construction stage. Mr. Sutarni Alloy The Local government not necessary to Enhanced of person total with AMAN NGOs embarrass talking and discuss about HIV /Aids be global rumors at (West Kalimantan IP people living with HIV because United the moment therefore ADB Networks NGOs) Nation already making the agreement concern towards this problem and Indonesian government will be especially for the project that concerned also with this issues. gets aid belongs this regional road development activity.

Indigenous people will be involved This opinion is useful for In development planning , executing and consultant as input the study, but evaluating of the project for eliminating based on field survey result and Conflict. information from related institution not found around road link at RRD propose. The AMAN NGOs networks are working in borders areas already. This information useful as input

Road development at border is very This opinion is in line with aim or Important to increase economic growth , target that want achieved as especially in Indonesia area that rich with regional road development natural resources project execution result.

Yuyun Kurniawan How with legal aspect when does land Legal aspect for land property Titian NGOs acquisition needed in this regional road that take outside by government development? (like land certificate, agreement of borrows to wear forest area and others) be necessity in land acquisition for this regional road development project.

In this study necessary considering road/ This suggestion will be input to bridge materials use clarity legally, environment management because at field is found road construction activity that pine up in IEE has used wood from illegal logging result document with give prohibition to Contractor uses wood material from illegal logging.

In this study necessary considering In environment management community existence that live at road activity at construction stage side towards increasing of dust impact towards dust enhanced will be In construction stage. carried out compaction of the area that passed by vehicle punctually and true and water spray to opened land to decrease of impact towards community that live beside road, this management activity is included at IEE document.

Necessary be considered to bridge and This suggestion very useful for box culvert existence that to decrease Consultant to improve and flood with considering height of bridge and accommodate in preliminary width of box culvert design.

In post construction stage with good road This suggestion is as input to

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condition necessary studied possibility consider in IEE study there are settlement community that move nevertheless this impact to road side and necessary studied nature preventable when is there reserve existence as like Gunung Nyiut and regulation applications Kebun Raya Pasi emphatically to avoid citizen settlement transfer to road side. Based on field survey and information from forestry map at the road link in RRDP propose not found Nature Reserve Gunung Nyiut and Kebun Raya Pasi and existing link not influenced of this nature reserve.

Mrs. Novila Devi Bapedalda very support and agree with This suggestion very useful for Bapedalda West plan of road development at West the consultant for get public Kalimantan Kalimantan opinion towards road (Environmental development plan. Management Agency) What done screening in this study about One of the scope of IEE in RRDP important impact that generated by road will carry out screening each road development according rule of Minister of link that reviewed to determine of Environment Decree No. 11 of 2006 about environmental assessment study AMDAL? kind that will used. Screening process threaten in environment regulation of GOI (Minister of Environment Decree No. 11/2006 about AMDAL , President Decree No.30/1990 about Protected area and Sensitive area and Regulation of Minster Public Works No.10 of 2008. ) and ADB guidelines . Result of screening each link can be categorized as AMDAL, UKL-UPL or SOP (GOI rule), while based on ADB guidelines can diversified of project with A category, B category or C category.

What environmental assessment type that prepared in RRDP ? Because from screening result to every link is UKL-UPL and SOP (based on GOI regulation), so appropriate ADB guide is project with B category with duty composed IEE document.

Mrs. Sofwan For opinion that explain HIV /AID not Enhanced of person total with Provincial Aids necessary to take attention in this study , HIV /Aids be global rumors at Committee ( KPA KPA NGOs not agree because the number the moment therefore ADB NGOs) of people who are living with HIV Aids concern towards this problem always increase every day and at West especially for the project that Kalimantan the Provincial AIDS gets aid belongs this regional Committee is leading by Governor. road development activity.

Mrs. Suhaini Community of Tebas very support and This suggestion is very useful by Community Leader agree about plan of road development, Consultant for get description of Tebas (Sambas because will increase economic growth community perception about

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regency) at Sambas regency project plan.

Mrs. Rudy Rahmad Road development /repairing necessary is This suggestion is very useful by VPN NGOs of support because existing road in not good Consultant for get description Sambas regency condition so community experience community perception about Transportation difficulty to market of project plan. agriculture or plantation result.

Mrs. Hayam Hanik Plan of road widening necessary be done Socialization activities will be Community Leader of socialization towards community held on the next stage, and Semparuk Village present time in feasibility study stage, the Consultant does public consultation once according to ADB guidelines Mrs. Solichin Realization of road development necessary This opinion very useful by Comunnity Leader of soon carried out because existing road not consultant and enthusiastic of Sambas regency Proper. Community is how does the important road development /repair at this area. Mrs. M. Syerly This public consultation activity necessary is Socialization activities will be District government of continued socialization to community by held on the next stage, and Pemangkat head of district (camat) and attended by present time in feasibility study project consultant. stage, the Consultant does public consultation once according to ADB guidelines

Mrs. Ahind S Government of Pemangkat district very This statement is very useful for Tonas Sajuga NGOs support about plan of road development Consultant to get description opinion of community about project plan. Mrs. Ilhamsyah Plan of road development necessary done Socialization activities will be Sambas government socialization to community and necessary held on the next stage, and involve local community when construction present time in feasibility study activity is carried out. stage, the Consultant does public consultation once according to ADB guidelines

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