Sulawesi EC Scoping Report Final Draft

Strategic Environmental Assessment (SEA) for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Scoping Report Sulawesi Economic Corridor

Photo taken from K.B.A. Tur (Taman Nasional Takabonerate)

Ministry Of Foreign Affairs Of Denmark Scoping Report

May 2014

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

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Strategic Environmental Assessment (SEA) for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Scoping Report Sulawesi Economic Corridor

Prepared for Ministry Of Foreign Affairs Of Denmark Represented by Mr Peter Oksen

Project manager Joshua Jon van Berkel

Project number 61800814 Prepared by Michal Musil; Yesaya Hardyanto Approval date Revision Classification Open/Restricted/Confidential

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

This page is intentionally left blank

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

CONTENTS

1 Introduction ...... 1 1.1 Scoping Methodology and Analysis ...... 2 1.2 Identifying Strategic Social and Environmental Impacts ...... 2

2 Internal Scoping ...... 4 2.1 Methodology and Analysis ...... 4 2.2 General Overview of Scoping Findings ...... 5 2.3 Areas of Specific Concern (with Potential for Cumulative Impacts) ...... 8 2.3.1 South Sulawesi – Makassar Broader Area ...... 8 2.3.2 Manado-Bitung Area of Concern ...... 10 2.3.3 Towuti, Mahalona and Matano Lakes Broader Area ...... 12 2.3.4 Gorontalo Area of Concern ...... 15 2.3.5 Palu Greater Area ...... 17 2.3.6 Southeast Sulawesi Area of Concern ...... 19 2.3.7 Others ...... 21 2.4 Summary of Scoped Issues for Further Analysis ...... 21 2.5 Preliminary Recommendations ...... 23 2.5.1 Agroindustry ...... 23 2.5.2 Heavy Industry and Connectivity – Power Generation ...... 23 2.5.3 Mining ...... 24 2.5.4 Connectivity ...... 24 2.5.5 Coastal development ...... 25 2.5.6 Social concerns ...... 25

3 Stakeholder Consultation ...... 26 3.1 Organisation and Methodology ...... 26 3.1.1 Stakeholder Mapping and Workshops Attendees ...... 26 3.1.2 Objectives and Approach ...... 26 3.2 Summary of Key Feedback ...... 29 3.3 Relevance for Scoped Issues ...... 30

4 Priorities for Further Analysis ...... 32

5 List of Reference ...... 35

FIGURES

Figure 1.1 Position of Scoping Analysis in Overall SEA Project Programme ...... 1 Figure 1.2 Schematic illustrations of the definition of Strategic Environmental Issues ...... 3 Figure 2.1 Map of key baseline features of Sulawesi EC ...... 7 Figure 2.2 Map showing area of environmental strategic impact around South Sulawesi (Makassar, Pangkajene Kepulauan, Barru Regency) ...... 9 Figure 2.3 Map showing area of environmental strategic impact around Manado and Bitung broader area ...... 11 Figure 2.4 Map showing key baseline features for forest and protected areas in Towuti, Matano and Mahalona Lakes Broader Area ...... 13 Figure 2.5 Map showing area of environmental strategic impact around Towuti, Matano and Mahalona Lakes Broader Area ...... 14 Figure 2.6 Map showing area of environmental strategic impact around Gorontalo province ...... 16 Figure 2.7 Map showing area of environmental strategic impact around Palu Greater Area ...... 18 Figure 2.8 Map showing area of environmental strategic impact around South Sulawesi ...... 20

TABLES

Table 2.1 Sustainability receptors used in scoping study ...... 4 Table 2.2 Issues for further SEA analysis related to corresponding areas of Sulawesi EC ...... 21 Table 3.1 Agenda for Sulawesi EC stakeholder consultations ...... 28 Table 3.2 Comments obtained during Stakeholder consultation session for Sulawesi EC ...... 29 Table 4.1 Summary table of EC strategic issues for further analysis ...... 33

APPENDICES

A Baseline Data Sources

A.1 National Data

A.2 Sulawesi EC Data

B MP3EI Planning Information in Sulawesi Economic Corridor

B.1 List of Economic Development Projects

B.2 List of Main Planned Infrastructure Projects

B.3 List of KPI and its allocation for economic activities

C Scoping Matrix

C.1 Fisheries (Aquaculture)

C.2 Mining (i.e. Nickel Mining; Oil & Gas Exploitation)

C.3 Heavy Industry (Nickel, Oil & Gas, Gold – Processing & Smelting; Cement Industry)

C.4 Light Industry (Food & Agriculture [Cocoa], Fish/Shrimp – Processing)

C.5 Agro-Industry (Agriculture Farming, i.e. Rice, Cassava, Cocoa)

C.6 Connectivity – Infrastructure (Including Energy Generation)

D Stakeholder Consultation Meeting

D.1 List of Stakeholder Consultation Attendees

D.2 Scanned of Attendance List

D.3 Minutes from Public/ Stakeholder Consultation Meeting

D.4 Activity Photos ii SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Introduction

1 Introduction

The Scoping Phase of the Economic Corridor Indonesian Master Plan for Accelerated Economic Development (MP3EI) Strategic Environmental Assessment (SEA) applied a combination of internal MP3EI SEA Team Scoping exercises and Stakeholders´ Consultations to identify related strategic social and environmental issues and risks. This was to generate preliminary recommendations on mitigating or avoiding likely adverse effects of the Economic Corridor (EC) plans´ implementation. These findings will then be used to provide interim feedback to MP3EI planners and policy-makers. They will also provide the basis for the next stage of the EC SEAs; namely the further analyses of likely impacts in order to verify strategic issues and risks.

This report outlines the results of this analysis and the associated consultative steps taken for the execution of the Sulawesi Economic Corridor (EC) MP3EI SEA. In doing this, this report outlines:

• The methodologies used to undertake the internal scoping and stakeholder consultation

• The results of the internal scoping process in terms of both preliminary findings and summarised issues in ‘Areas of Concern’

• A number of preliminary recommendations to mitigate likely adverse effects of expected EC developments

• Stakeholder Consultation feedback, both in terms of response overview and summarised conclusions

• A finalised list of strategic MP3EI related environmental and social issues and risks in the Sulawesi Economic Corridor that require further analysis and which present the basis for analysis of likely impacts.

Figure 1.1 Position of Scoping Analysis in Overall SEA Project Programme

1.1 Scoping Methodology and Analysis

Although there are a wide selection and many variations of scoping approaches and methods, the scoping approach designed for MP3EI EC SEAs aimed to combine comprehensive preparatory data collection and mapping, with the appropriate mix of Delphi analyses (i.e. internal scoping) and stakeholder consultation. The aim of this approach was to define the scope of further assessment in a credible way and thereby ensure that the SEA efficiently focusses on the most relevant social and environmental aspects.

The Sulawesi Economic Corridor scoping procedure consists of a two-stage process:

1. The first stage (see Section 2), consisted of an internal scoping workshop utilizing project team experts in relevant fields to identify the key likely strategic social and environmental issues and their locations within the economic corridor.

2. The second stage (see Section 3) was a stakeholder consultation meeting held in Makassar, 11-12 March 2014 consisting of governmental officials / experts, academics, NGOs and others. This event allowed for dissemination of the internal scoping preliminary results and additional expert feedback to verify scoping results and/or to highlight any data gaps or new insights from a more local perspective.

The findings from both stages were then integrated to produce this report and the finalised list of strategic issues in need of further analysis.

1.2 Identifying Strategic Social and Environmental Impacts

Strategic environmental impacts are simply those that can only be adequately addressed at the Planning, Policy or Programme (PPP) stage. This means that SEA should not address impacts which can be effectively analysed at the project level (through EIA / AMDAL or relevant permitting procedures).

The Policy Level In relation to the MP3EI Policy, a strategic issue or risk is where a stated development policy or planning direction clearly deviates from established socio-economic and environmental standards set out as;

• Legislation, regulations or policies • Goals and objectives • International commitments or treaties.

Indonesia’s commitments and treaties relevant to this SEA which are used as indications of expected social and environmental achievement are discussed in full in the MP3EI Policy SEA (Preliminary Report), which was being drafted at the time of writing this report

The Economic Corridor Level Underpinning the analysis and understanding of Strategic issues at the Policy Level, the MP3EI SEA process defines strategic issues at EC planning level as per the following attributes and definitions (see also Figure 1.2)

Cumulative Impacts Cumulative impacts occur when potential effects (i.e. whether compliant or not) from developments accumulate either with each other or with pre-existing environmental stressors. For example, if an industrial zone is established beside existing and future areas zoned for residential use, there is a potential for combined environmental emissions (e.g. air and water pollution) to exceed environmental quality standards related to health and ecological resources.

2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Introduction

Proper positioning of these zones and control of industrial zoning (e.g. type of industries, cleaner production) can prevent this before it occurs. The potential cumulative impacts are of special importance for SEA, as they cannot be adequately addressed at the project level.

Interactive impacts Interactive impacts arise when MP3EI initiatives show the potential conflicts with other planning aspects or sensitive baseline features. For example, the intention of a highway that passes through a conservation area. This is an interactive conflict where the intended development can be better addressed at the planning stage rather than via Project design (i.e. that can sometimes be ineffective and unacceptable).

Scale of Impact The scale of impact plays a role when a planning element(s) shows evidence of potential international or regional significance, (e.g. large scale flooding or water pollution). Here, the scale of impact is considered strategic because its broader implications cannot be adequately dealt with through a more limited AMDAL process.

Figure 1.2 Schematic illustrations of the definition of Strategic Environmental Issues

These definitions are commonly used when identifying environmental and social issues in spatially related planning processes, and they will also allow SEA experts, i.e. in subsequent phases of the EC SEA, to carry out further analysis of the identified issues in relation to the SEA Article 16 principles under Law No 32/2009 concerning Environmental Protection and Management, as noted below:

• Environmental carrying and assimilation capacity • Environmental Impact and Risk • Ecosystem Service Performance • Efficiency of Natural Resource Utilization • Vulnerability and Adaptive Capacity to Climate Change • Biodiversity Potential and Resilience

2 Internal Scoping

The methodology used to carry out internal scoping, along with explanation of the related results and recommendations are outlined in the subsequent subsections.

2.1 Methodology and Analysis

Internal scoping was carried out in three general steps outlined below.

Data Collection The collection and collation of spatially related EC planning information and relevant baseline trend data was considered essential to ensure an acceptable level of scoping analysis. For the Sulawesi EC SEA, and all other Economic Corridors SEAs, mainly secondary data sources and provincial planning data were collected through a ‘Pre-scoping Stage’ (see Pre-Scoping Report in MP3EI website: http://klhs-mp3ei.bappenas.go.id/document) and approximately 70 country- wide spatial data sets were sourced through both government and private agencies (see Appendix A for a list of contributing agencies).

Both MP3EI Planning data and collected spatial sets were compiled within an ArcGIS database, i.e. which is also presented in a semi-public1 web-based map browser (http://klhs- mp3ei.bappenas.go.id/map), in order to allow for overlay and extrapolative techniques during scoping.

Expert ‘Delphi’ Scoping The composite GIS maps were used to overlay the current baseline features (e.g. conservation areas and mangroves, and other levels of planning) with the future MP3EI economic activities and connectivity projects proposed for a given EC; thereby allowing expert identification of locations of likely environmental and social issues or risks.

This was carried out over an intensive 1-day Delphi workshop session where dedicated EC team members and specialist experts in relevant disciplines applied the available data (i.e. including trend data) with GIS map-overly / extrapolation techniques and specifically designed scoping matrices to carry out scoping.

A dedicated scoping matrix was assigned to each MP3EI Economic Sector (e.g. Mining, Agroindustry, Tourism, Connectivity), and the related projects and spatial strategies (e.g. KPIs and Nodes) in the EC were systematically analysed in relation to sustainability receptors categories; namely physiochemical, ecosystems and socio-economic (including human health). Each of these receptors categories were then further broken down to examine impacts on different aspects of each receptor as shown in Table 2.1

Table 2.1 Sustainability receptors used in scoping study

Physiochemical Ecosystem Socioeconomic Land Forest Health Water Coastal Socio - Cultural Air Biodiversity Economic

With the guidance of a scoping facilitator, the scoping team filled in the matrices to identify specific strategic risks in relation to the established definitions (see section 1.2) and to determine locations where these strategic impacts are likely to occur.

1 There is limited access to the public as some of the data has been deemed confidential

4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

The criteria outlined in Section 1 were then applied to the spatial datasets to identify ‘Areas of Concern’ where the likely impacts are deemed to be significant enough to be of strategic importance.

Identifying Areas of Concern & Preliminary Recommendations Internal scoping included follow-up works after the actual Delphi sessions to ‘tidy up’ scoping matrices. Due to the magnitude of scoping results, the findings are summarised to be ‘consumable areas of concern’, i.e. in terms of communication and analysis.

These ‘Areas of Concern’ were typically identified in relation to:

• Particularly sensitive baseline features i.e. ecological habitat and/or socio-economics conditions (customary lands or important urban areas);

• Concentrations of, or interconnection between (e.g. located in one watershed), MP3EI development priorities and/or projects and/or existing unfavourable baseline features, which indicate likely cumulative impacts to multiple environmental and/or social receptors (e.g. coastal waters) in a particular area;

• Risk of likely large scale and/or interactive impacts related to the MP3EI implementation.

It should be noted that scoping and the analysis of ‘Areas of Concern’ considered the entire magnitude of MP3EI planning. Thus, not only were specific EC projects considered, but also the likelihood of development priorities (for specific Economic Sectors), “Nodes” and “KPIs”.

In order to provide input to policy makers, planners and for stakeholder feedback; preliminary recommendations for the most obvious issues were also developed. The recommendations elaborate guidelines for further economic development and project implementation as well as suggest issues to be addressed within the provincial planning or at the policy level.

2.2 General Overview of Scoping Findings

Sulawesi Economic Corridor consists of 6 provinces, namely South Sulawesi (21 regencies / kabupaten, 3 cities); Southeast Sulawesi (10 regencies / kabupaten, 2 cities); West Sulawesi (5 regencies / kabupaten); Central Sulawesi (10 regencies / kabupaten, 1 city); Gorontalo (5 regencies / kabupaten, 1 city) and North Sulawesi (11 regencies / kabupaten, 4 cities).

About 50 percent of the total workforce in Sulawesi finds employment in agriculture, particularly in production of commodities such as rice, corn, soybean, and cassava. Sulawesi is the third largest food producer in Indonesia, which accounts for 10 percent of national rice production and 15 percent of national corn production. Also animal husbandry is of key importance – South Sulawesi is the third cattle-producing province of the country. Cocoa production area in Sulawesi reaches 838,037 Ha (58% of Indonesia total cocoa production area). Fishery contributes approximately 22% of the total GRDP of food agriculture sub-sector (70% catch fisheries and 30% aquaculture) and Sulawesi fishery sector is the largest among all Indonesian regions in terms of production volume. Forestry is also an important economic sector especially in Central Sulawesi.

Nickel mining in Sulawesi contributes approximately 7% of GRDP for Sulawesi, which holds 50% of Indonesia’s nickel reserves. In addition to nickel, there are several other mining-related economic activities, notably asphalt extraction in Pulau Buton (Southeast Sulawesi), gold mining in Gorontalo and North Sulawesi, and limestone extraction in South Sulawesi. Both oil and gas reserves in the Sulawesi Economic Corridor are relatively low compared to the other regions of Indonesia.

The territory of Sulawesi EC is characterized by rich biodiversity and the presence of important coastal ecosystems with a high rate of endemic mammal, bird and fish species (with 62% of

endemic mammal species, Sulawesi belongs to the areas with the highest rate of endemic mammal speciess in the world). The northern peninsula of Sulawesi (Minahasa, Totabuan and Gorontalo) is the most critical area in the region in terms of biodiversity.

Total forested areas in Sulawesi accounts for 66.24% of total land of the region. However, approximately 80% of its original forest cover has lost or seriously degraded. Over 50% of forests are considered to be in poor condition, while only 30% — mostly in the highlands (above 1500 meters) — are classified to be in good condition. Current deforestation rate in Sulawesi is lower than the other Indonesia’s region, primarily because of large-scale loss of forests has already occurred during previous decades. Logging and conversion for different land-use, namely for cocoa and food agriculture production are the main cause of deforestation in Sulawesi.

Seas around Sulawesi are rich with large habitats of seagrass beds and coral reefs, which are home to leatherback turtles, hawksbill turtles, and green turtles, as well as dugongs and six of the world's seven giant clam species. Pressure on coastal ecosystems is triggered by the rapid coastal development activities (expansion of residential areas, ports construction, etc.). Mangrove forests are found in estuaries and along Sulawesi's coastline. Removal or damaging of mangroves (typically for firewood and to develop aquaculture ponds) has resulted not only in direct loss of biotope and ecosystem functions, but also triggering the coastal erosion in the area.

Pressures on marine ecosystems are presented mainly by overfishing, the use of illegal fishing methods (including blast and cyanide practices and the use of illegal gears), as well as sea water pollution by industrial and domestic sewage discharge. Overfishing for big pelagic fishes in North Sulawesi and shrimp in South Sulawesi has already resulted in a drop in the catches of both commercial and subsistent fishermen.

Much of the coral reef areas off the coast of Sulawesi are classified as highly threatened and consistently under pressure along the entire coast of mainland Sulawesi as well as the adjacent islands. Main stressors include overfishing, use of destructive fishing methods, water pollution and silting as well as coastal development.

Many cases of heavy water pollution have been reported across the region mainly as a result of insufficient municipal waste management (both solid waste and wastewater), industrial wastewater discharge, and contamination of water by highly toxic leachate from the tailings and other residues from mining operations (gold, nickel). Another important factor influencing the freshwater quality as well as coastal marine environment is the sedimentation and accumulation of sediment-attached nutrients.

Ambient air quality is an issue relevant namely for urbanized areas and areas adjacent to industrial sites. Available data indicate serious air pollution situation in the city of Makassar (South Sulawesi) with the average concentration of main polluting substances fairly exceeding standards established by the national legislation and/or WHO guidelines. Similar situations can also be estimated for the other larger urban areas such as Bitung and Manado in North Sulawesi.

Poor environmental management practices, lack of environmental regulations and low enforcement of existing laws are often invoked factors contributing to the worsening of the environmental situation in Sulawesi. Illegal logging is estimated to account for 40% of the total production of timber on the national level, and represents an important problem also in the Sulawesi context (e.g. in the Morowali Conservation Park and Banggai forest in Central Sulawesi).

Cultural diversity with many communities of indigenous people represents an important baseline feature of Sulawesi. Cases of indigenous communities claiming rights to their traditional lands (especially Central Sulawesi) can be found, as well as conflicts between groups of different cultural backgrounds and conflicts over developments in the territories claimed as “customary

6 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

lands” have been recorded e.g. in Palu Region. Main selected baseline features are depicted in Figure 2.1

Figure 2.1 Map of key baseline features of Sulawesi EC

The MP3EI planning indicates the main objective of the Sulawesi EC as “Center for Production and Processing of National Agricultural, Plantation, Fishery, Oil & Gas and Mining”. Conversely the main planned economic activities include agriculture, cocoa, fisheries and nickel mining, complemented with projects focusing on development of infrastructure, including transportation infrastructures (airports, ports, roads), energy infrastructures (power plants, transmission network components) and water resources infrastructures (reservoirs, water treatment facilities). A list of MP3EI planning in the EC is provided in Appendix B.

Reviewing the baseline features and MP3EI economic development in the EC, the internal scoping identified a number of strategic environmental and social impacts:

• Cumulative impact on water from pollution related to nickel mining and processing, as well as from agriculture production (erosion, contamination) and alteration of water regimes (e.g. Palu river, Poso lake, Tondano system)

• Land degradation due to unsustainable agriculture practices and forest conversion for plantation and other economic activities.

• Further deforestation due to mining and agriculture activities

• Interactive impact on protected areas leading to habitat fragmentation and biodiversity loss due to infrastructure development (e.g. roads, ports)

• Coastal ecosystem degradation (i.e. mangrove and coral loss) due to increased coastal development (ports, settlements) and overfishing

• Public health risks related to cumulative impacts on air and water from MP3EI economic activities (i.e. mining, industries, power plants)

• Impact on economic opportunity and livelihood (e.g. loss of local livelihood) driven by MP3EI economic development, and impacts on cultural and social values of local communities through increased migration.

• Social conflict over customary lands due to MP3EI developments.

• Increased pressures on water and waste management capacities, namely in urban areas.

• Public health risks related to environmental quality (air, water and food contamination).

• Increased need for disaster risks management due to developments in risk prone areas (e.g. Morowali, Manado, Makassar).

2.3 Areas of Specific Concern (with Potential for Cumulative Impacts)

Based on the results of the internal scoping exercise, several “areas of concern” were identified within the Sulawesi EC, while taking into account existing baseline features of the area, concentration of envisaged MP3EI-related activities, and preliminary estimations of potential risks and magnitudes of environmental impacts associated with the MP3EI implementation.

2.3.1 South Sulawesi – Makassar Broader Area

Key Baseline Features The South Sulawesi area adjacent to Makassar City belongs to the most populated and economically important regions of Sulawesi EC. Intensive agriculture and urban development caused significant loss of original forest cover already during past decades. Industrial developments and mining (e.g. limestone) are also factors contributing to land cover alteration. Industrial capacities are concentrated in (but not limited to) Makassar, which also serves as regional port/transportation hub and the base of fishing fleets. Existing environmental problems include heavy water pollution in the Jeneberang watershed, accompanied with decreasing capacity of water resources to supply the growing population of Makassar city. Atmospheric emissions from traffic and existing industries contribute to generally low air quality in urbanized areas. Population of urban areas also suffers from lack of capacities for sound waste management. Large coral reefs (partially protected as Marine Protected Area) in the area have experienced partial degradation due to impact of pollution, transport of sediments from watersheds with increased erosion, as well as direct impacts from offshore drilling operations, marine transportation and fishing activities. These factors, together with urban and infrastructure development and expansion of aquaculture establishments also contribute to advancing degradation and loss of coastal ecosystems such as mangroves.

Area Planning The activities associated with MP3EI Sulawesi EC Planning in the concerned area entail incentives for further intensification of food agriculture sector and fishery (namely aquaculture development), and the number of specific projects focusing on further strengthening of existing industrial base (e.g. fishery processing), aquaculture farms, liquefied petroleum gas (LPG) terminal, and others. Envisaged infrastructure developments consist of a significant number of ports (both new establishments and upgrade of existing facilities), energy installations, and roads construction/upgrade.

8 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

Figure 2.2 Map showing area of environmental strategic impact around South Sulawesi (Makassar, Pangkajene Kepulauan, Barru Regency)

Environmental Risks and Concerns

Physiochemical Aspects A key concern is the potential cumulative impact of all proposed activities on water resources. Water pollution and overused have already been experienced in the Makassar area. Although an MP3EI related project is envisaged to improve water supply in Makassar city, the other MP3EI activities (industrial development and food-agriculture investment node) will most likely result in the further increased of pressure on the exisiting water resources, not only due to the increase in water demand, but also due to the further alteration of water regime in watersheds (e.g. Tallo watershed) affected by deforestation and conversion for agriculture (and other intensive forms of land-use).

Amospheric emissions from new industrial and energy generating facilities, as well as from additional transport services to new economic activities and intensification of urbanization and demographic growth will contribute to further decrease of air quality in urban areas.

Ecosystems Concentration of planned coastal developments (ports, aquaculture activities, LPG terminal, etc.) combined with intensification of fisheries industry (Fisheries investment node) will likely further increase pressure on existing large coral reefs in small islands close to Makassar city (e.g. Lae-Lae, Langkai, Lanyukkang, Samalona, Barang Caddi, Barang Lompo, Kodingareng Lompo, Kodingareng Keke, Bonetambung etc) , as well as other coastal ecosystems in the area. In addition, increase of emissions to water (from planned industrial and agriculture development) and increase in erosion (triggered by continuing deforestation and agriculture intensification) can increase pressure on coastal zones as well (pollution and siltation).

Cumulative effects of road infrastructure development and land conversion for agriculture and settlements expansion will likely further reduce the area and limit ecosystem functions of forest land due to its fragmentation (including fragmentation of existing protected areas by the envisaged road network development – especially in central and northwest areas).

Socio-economic Aspects Further acceleration of industrial and transportation infrastrucutre development induced by the MP3EI implementation will likely result in intensification of urbanization and demographic growth (and higher immigration rates), which in turn will increase pressures on existing resources (land and water), and cause exacerbation of already existing environmental problems such as poor air quality in urban areas. Similarly, increasing trends in waste production and waste-water generation reinforced by the MP3EI related investments are likely to follow the economic and demographic development and may impose unbearable burden on existing sanitary infrastrucutre capacities with negative effects on public health.

The above mentioned developments can also trigger social conflicts related to land-use (e.g. industrial and urban development versus subsistence farming) and water resources allocation (e.g. use for economic activities such as energy generation or processing industries versus supply to population).

Planned development of aquaculture (e.g. Maros, Pangkajene Dan Kepulauan, and Barru regencies) in the area with a prospect of further worsening of water quality (industrial and municipal waste waters discharge, influx of sediments and contaminants carried by rivers) can raise concerns about health risks for consumers of this local aquaculture production and also directly reduce the productivity of such projects.

2.3.2 Manado-Bitung Area of Concern

Key Baseline Features The North Sulawesi area adjacent to cities of Manado and Bitung is an important sector of development in the context of entire Sulawesi region. Intensive agriculture and urban development have already caused significant loss of original forest cover during past decades. Industrial capacities are concentrated in both large settlements, which also serve as regionally significant ports. An important natural condition of the area is the vulnerability towards the seismic condition of several active volcanos in the area. A noticeable component of the environmental baseline is the rich coastal ecosystem, particularly off the northern shores of Sulawesi, where a large area of seagrass beds contributes to the marine biodiversity. Mangroves and coral reef areas are still in good condition to a large extent; however they are facing increasing pressure from coastal development, pollution and aquaculture and fishing activities.

An important issue is water pollution and soil degradation and loss of water resources for human use in the Tondano lake and river system. Degradation of the Tondano watershed has far reaching effects, including impacts on the pollution and sedimentation control in the Manado Bay, Bunaken Marine National Park, and coastal waters of Celebes Sea. In general, the alteration of water regimes is triggered by human activity can be identified as significant factor leading to increased risk of floods in the whole concerned area.

An environmental problem typical for urban areas is low air quality resulting from the traffic related emissions (while combination of local fireplaces and industrial pollution sources being further contributing factors). The population of urban areas also suffers from lack of capacities for sound waste management. Specific issues are the pollution and land degradation related to artisanal gold mining, which take place to large extent illegally. Existing pollution-intensive gold mining and processing activities are likely to continue if not properly managed.

10 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

Area Planning The activities associated with MP3EI Sulawesi EC Planning in the concerned area entail incentives for further intensification of the fishery sector (namely aquaculture development), and a number of specific projects focusing on further strengthening existing industrial bases (e.g. fishery processing). Key MP3EI related strategic development is however related to expansion of the Bitung port, thus developing the area into a transportation hub of regional and even international importance. Further envisaged infrastructure development consists of a significant number of ports (both new establishment and upgrade of existing facilities), energy installations (including geo-thermal power plant), and roads construction/upgrade.

Figure 2.3 Map showing area of environmental strategic impact around Manado and Bitung broader area

Environmental Risks and Concerns

Physiochemical Aspects An issue of concern is likely cumulative impact of all proposed activities on water resources. Water pollution and overuse is already prevalent in the Tondano lake and river system. However, the MP3EI objective of developing the area in large-scale transportation hub carry a larger potential for secondary impacts in terms of population growth and development of economic activities including water-intensive food production and processing industries. Such developments will most likely result in the increased pressure on exisiting water resources, not only due to the rise in demand for water, but also due to further alteration of water regime in watersheds affected by deforestation and conversion for agriculture (and other intensive forms of land-use).

Atmospheric emissions from new industrial facilities, as well as from additional transport (including marine shipping) serving new economic activities will contribute to further decrease of air quality in urban areas (in the vicinity of ports). Intensification of urbanization and demographic growth (immigration), will increase pressures on existing resources (land and

water), and cause exacerbation of already existing environmental problems such as poor air and water quality.

Ecosystems Concentration of planned coastal developments (ports, urban areas expansion, aquaculture activities, etc.) combined with intensification of marine transportations and fishing activities will likely further increase the pressure on existing large coral reefs, including the coral and seagrass rich areas of Bunaken. An area that will be affected in particular is the broader Bitung port area and coral reefs off-shore as well as the adjacent Lembeh island and other coastal ecosystems in the area. The anticipated development of aquaculture is likely to have a significant impact on remaining mangrove forests and coral reefs along the whole east coast of North Sulawesi.

The effects of the development of transportation infrastructures and energy generation facilities can further contribute to fragmentation of forest-based ecosystems. The role of regional and international (marine) transportation hub envisaged for Bitung by the MP3EI is likely to contribute to industrial development and urban expansion of Bitung, which can result in spatial conflict with adjacent protected area (Tangkoko-Batuangus Nature Reserve). Negative impact of energy production capacities development (geo-thermal) are already prevalent (impact on nature protected areas of Lokon Mountain Nature Reserve)

Socio-economic Aspects Further acceleration of transportation infrastrucutre development induced by the MP3EI implementation is likely to result in intensification of urbanization and demographic growth (immigration), which in turn will increase pressure on existing public infrastructure such as insufficient waste management capacities in urban areas.

The future intensification of transport developments in Bitung both within and outside of the region will increase the risks of occurence of transmissable diseases as well as the risks of social conflicts related to differences among migrant groups of different cultural backgrounds and social status. It can generate the need for additional capacities of public infrastructure and services (health, safety, education, etc.) including needs for additional funding. Further additional costs are likely to be associated with the management of risks and protection of population and investments against natural disasters (seismic activity, floods, etc).

Significant increases in marine transport intensity and coastal ecosystems degradation can pose risks for the sustainability of local fisheries, thus threatening the livelihood of a significant segment of the population that depends on subsistence fishing. Similarly, it can negatively affect the potential for tourism (e.g. diving) that is being developed in multiple locations throughout the area, especially in the Lembeh strait.

2.3.3 Towuti, Mahalona and Matano Lakes Broader Area

Key Baseline Features The area of mountainous relief with large segments of preserved forests surrounding three great lakes in the bordering zone between the Central, South, and Southeast Sulawesi provinces is endowed with rich both freshwater and terrestrial biodiversity, including a vast number of endemic species. A significant part of the area has a conservation status. At the same time, exploration and utilization of large mineral deposits (nickel, to less extent iron ore) as well as intensive agriculture and growth of human settlements (namely in coastal lowlands) constitute

12 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

the main driving forces responsible for gradual environmental degradation, including deforestation, land and soil degradation, water pollution and biodiversity loss.

Figure 2.4 Map showing key baseline features for forest and protected areas in Towuti, Matano and Mahalona Lakes Broader Area

A significant part of the territory is marked for potential expansion of mining activities (see mining concession areas indicated in the map below).

Area Planning The activities associated with MP3EI Sulawesi EC Planning in the concerned area primarily focus on further developments in nickel mining and processing potential (Nickel investment node), with several specific mining and nickel processing projects and service infrastructure (roads, energy generation and transmission capacity). In Palopo, on the periphery of the focus area, further development of aquaculture and associated processing industries are envisaged by the MP3EI planning.

Figure 2.5 Map showing area of environmental strategic impact around Towuti, Matano and Mahalona Lakes Broader Area

Environmental risks and concerns

Physiochemical aspects An issue of main concern is the impact of all proposed nickel sector activities on water resources (both underground and surface waters). Water contamination and water regime alterations are typical effects of any strip-mining, and the MP3EI objectives for this area of concern clearly indicate risks of large-scale impacts magnified by the existence of sensitive lake watersheds (Pangkeru watersheds) resulting in water and soil contamination. Pollution of coastal waters from strip-mining and tailing depositions into the sea is likely to continue and intensify.

Planned economic development has large potential for secondary impacts in terms of population growth and development of economic activities including water-intensive food production and processing industries. Such developments will most likely result in increased pressure on exisiting water resources, not only due to an increase in water demand, but also due to further alteration of water regime in watersheds affected by deforestation and conversion for agriculture (and other intensive forms of land-use).

Atmospheric emissions from new nickel processing industrial facilities, as well as from additional transport can be of local concern, with potential negative effects managable at the project level EIA, with sound application of technical mitigation measures.

The territories with rich nickel deposits in the Luwu Timur and Morowali regencies are also areas with high risk of seismic activity. This increases the potential for accidental contamination resulting from an impact of seismic events on mining operations (e.g. leakage following the destruction of tailing ponds containments) with possible large scale impacts on the surrounding water and soil.

14 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

Ecosystems The area is characterized by rich biodiversity with unique lake ecosystems hosting a large number of endemic species (e.g. freshwater endemic Sulawesi fishes, endemic Sulawesi mollusk, the Southeast Asia water bird (Anhinga Melanogaster), large hornbills (Rhyticeros), estuarine crocodile and others). The existing nickel mining and processing industrial base will be further developed and broadened with the MP3EI implementation, thus magnifying the potential for irreversible negative impacts on local ecosystems, both terrestrial and aquatic. Lake ecosystems are likely to suffer from continuing water quality degradation caused by both nickel mining and processing operations, and intensive agriculutre (erosion and sedimentation, influx of nutrients, contamination by agrochemistry residues).

Potential for further increases in pressure on coastal ecosystems (coral reefs and mangroves) exist along the whole coast of Gulf of Boni as a result of anticipated aquaculture developments (e.g. Palopo area) and continuing strip mining located in coastal areas (e.g. eastern bank of Boni gulf)

Development of transportation infrastructure and energy generation facilities can further contribute to fragmentation of forest-based ecosystems which still remain relatively intact in he area.

Socio-economic Aspects Further development of the nickel production base accelerated by the MP3EI implementation (Nickel investment node) is likely to result in the intensification of urbanization and demographic growth (imigration), which in turn will increase pressures on existing resources (land and water), and cause exacerbation of already existing environmental problems such as improper waste management in urban areas.

The issue of concern is the well-being of communities of migrant workers seeking opportunities in mining and associated heavy industries and related services. Their presence may increase the risk of outbreaks of transmissable diseases as well as spark conflicts among migrant groups of different cultural backgrounds and social status. It can generate the need for additional capacities of public infrastrucutres and services (health, safety, education, etc.) including needs for additional funding. Further additional costs are likely to be associated with the management of risks and protection of population and investment against the natural disasters (seismic activity, floods).

Coastal ecosystems degradation (e.g. nickel strip mining and tailing deposition to the coastal waters) can pose risks for sustainability of the local fisheries sector and thus threaten the livelihood of significant segments of the population that depend on subsistence fishing.

2.3.4 Gorontalo Area of Concern

Key Baseline Features The territory of Gorontalo province is characterized with large central lowland locations of cultivated land and dense rural population, surrounded by large un-fragmented forests covering mountainous terrains. Intensive deforestation trends have manifested along the whole border of the forested area that is continually encroaching towards the higher elevations (see deforestation indicated in the map below). Among the main driving forces for this current trend are the expansion of the agriculture land and gold mining, both industrial and artisanal. Agriculture and gold mining are responsible for existing soil and water resources degradation

(both pollution and overuse). A significant area is potentially available for further expansion of gold mining operations (see area of existing gold mining concessions in the map below). Significant environmental impacts are caused by uncontrolled illegal mining.

Large coastal areas host coral reefs and mangrove forests, that have so far retained their ecosystem functions thus contributing to rich coastal biodiversity and sustainability of fishing yields for local communities.

Area Planning The activities associated with MP3EI Sulawesi EC Planning in the concerned area entail incentives for further intensification of food agriculture sector (Food agriculture investment node). In addition, it envisages an investment project for gold processing industry, as well as several power plants, road network development, and several harbour facilities development projects.

Figure 2.6 Map showing area of environmental strategic impact around Gorontalo province

Environmental Risks and Concerns

Physiochemical aspects The MP3EI related activities will cement the character of the area, with food-agriculture and gold mining as two pillars of economic activities. This is likely to provide incentives for further land and soil degradation and water pollution (extrapolation of existing negative trends). Impacts to Lake Limboto and related watersheds (Limboto-Bone-Bolango watershed) can be expected.

Ecosystems Economic stimulus provided by the MP3EI is likely to reinforce the already intensive deforestation trend with impacts on natural habitats, including conservation areas (potential conflict with protected area in the Eastern part of Gorontalo). Intensification of water and soil

16 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

degradation trends will have an impact on coastal ecosystems. In accumulation with coastal development of settlements and port facilities, these developments can constitute a critical burden to coral reefs. Similarly, coastal developments are likely to contribute to the destruction of remaining mangrove vegetation. Specific areas of concern include coastal ecosytems in the south coast of the Boalemo regency and the north coast of Gorontalo Utara regency.

Socio-economic aspects The potential risk to human health is related to the concurrent pursuit of highly pollution intensive gold mining and processing activities and food agriculture development in the same area. Further deforestation related to promoted economic activities (gold mining, agriculture) can increase the risk of alteration of water regime, thus exposing the population to a higher risk of natural disasters (droughts, flash floods, landslides).

Economic developments (and associated migration) are likely to contribute to the occurrence of land-use disputes and conflicts over existing resources (water, fishing territories). The increased economic activity both in mining and agriculture will increase the demand for waste management infrastrucutre, to prevent the exacerbation of soil and water related issues and impacts on human health

2.3.5 Palu Greater Area

Key Baseline Features Territories in the vicinity of Palu city comprising parts of Central and West Sulawesi provinces are charaterised by large proportions of intensively cultivated agricultural land, both plantations (cocoa, oil palm) and food agriculture farms. Cocoa production is traditionally an important segment of the local economy, with majority of cocoa production plantations being small-scale family holdings. Agriculture activities influence water conditions in inland water bodies (e.g. Palu river system, lake Lindu, or lake Poso on the periphery of the concerned area) together with impacts from aquaculture and fishing, thus contributing to the degradation of water resources (sedimentation, increased concentration of nutrients and other polluting substances). Another issue of concerns are the impacts of gold mining (partly illegal artisanal mining) on water quality and potentially on the health of the exposed population. On the other hand, a substantive part of the territory retains forest cover, partially with conservation status. The area is also significant due to its large cultural diversity, with number of culturally distinctive communities and claiming rights to their customary lands. Some of the issued concessions for oil palm plantation developments are in conflicts with delineation of customary land (see map below).

Area Planning The activities associated with MP3EI Sulawesi EC Planning in the concerned area entail incentives for further intensification of cocoa production sector (Cocoa production node). In addition, it envisages investment projects in agriculture and fisheries related processing industry, as well as several power plants, road network development, and several harbour facilities development projects.

Figure 2.7 Map showing area of environmental strategic impact around Palu Greater Area

Environmental Risks and Concerns

Physiochemical aspects Palu greater area with intensive developed agriculture and plantation sectors are likely to experience further intensification of cocoa plantation development (Cocoa production node) as well as the continuation of oil palm plantation expansion. This is likely to contribute to the exacerbation of existing soil and water resources degradation. Industrial, harbour infrastrucutre, and energy production capacity development investments concentrated in the Palu City area can result in the increased of air and wastewater emissions affecting the population of urban areas. Development of harbour installations and increase intensity of marine traffic will have a negative impact on water quality in Palu Bay.

Ecosystems Deforestation and fragmentation of ecosystems may intensify, unless the incentives for increased cocoa production stipulated by the MP3EI EC planning are not complemented with strictly enforced regulation preventing further conversion of forest land. Infrastrucutre development (MP3EI road from Palu to Parigi) may further contribute to the issue, namely when located in the vicinity (or within) forest area. Freshwater ecosystems are likely to face increasing pressure from both degradation of water quality and intensification of fisheries industry activities.

Coastal ecosystems will continue to experience pressure from watershed management related problems – increased transport of sediments and their accumulation in already heavily degraded Palu Bay, and related water quality problems in the coastal ecosystems. In addition, impacts of increased marine traffic and pollution related to harbour logistical operations are likely to contribute to the ecosystem stress.

18 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

Socio-economic Aspects The plantation expansion can cause social conflicts over customary land rights, as well as conflicts related to market competition between small plantation holders and large-scale industrial plantations (cocoa). The area (especially Poso Lake area) has already experienced permanent social tensions due to differences in economic status and religious affiliation of different groups, which can intensify as a result of alteration of socio-economic dynamic caused by the MP3EI related interventions.

2.3.6 Southeast Sulawesi Area of Concern

Key Baseline Features The area of Southeast Sulawesi combines large territories of intensively cultivated lowland landscape with large hilly regions and preserved primary and secondary forests (partially with protected status), as well as diverse coastal areas and small islands (often with sensitive ecosystems including coral reefs and mangroves, partially protected as marine protected areas). The area is also endowed with diverse mineral deposits, so far only partially utilized. Among already experienced environmental problems caused by ongoing deforestation, land and soil degradation caused by intensive agriculture and water resources loss due to overuse and pollution caused by both agriculture and mining sectors. In addition to food agriculture, Southeast Sulawesi belongs to important cocoa production regions with large parts of the production delivered by small family-operated or community plantations.

Area Planning The MP3EI Sulawesi EC Planning in the concerned area focuses on further capitalization of the existing natural potential. The area is planned to be developed through Cocoa production node, Nickel production node and Fisheries production node. In addition, several specific projects are directly associated with heavy industry (metal processing), indicated along with general investment incentive measures within the MP3EI EC plan. Significant investments are committed to the development of road network and power generation and transmission infrastructure. A number of ports (both new and upgrade of existing ones) are also envisaged.

Figure 2.8 Map showing area of environmental strategic impact around South Sulawesi

Environmental Risks and Concerns

Physiochemical aspects MP3EI-related boosts for the mining and metal processing sector can result in the increase emissions to air and water pollutants. However these effects can probably be sucessfully mitigated at the project level. Of strategic importance are the impacts of strip mining on water regime of likely affected watersheds (Konaweha watershed). Water resources degradation is already experienced in connection with agriculture and the prospect of intensification of cocoa production and mining can further increase the risk of cumulative impacts resulting in problems with ensuring reliable and safe water supply (for industrial use, irrigation and human consumption). Also, closely related is the problem of soil contamination and erosion, caused by unsustainable agricultural practices, both in subsistence farming and industrial-scale plantation sectors.

Ecosystems Deforestation and fragmentation of ecosystems may intensify, unless incentives for increased cocoa production stipulated by the MP3EI EC planning are not complemented with strictly enforced regulation preventing further conversion of forest land. Potential utilization of mining concessions in areas with remaining forest cover (including primary forests in the north part of the area) would be associated with loss of habitats and deterioration of ecosystem functions in affected localities. Infrastructure (road network and energy production and transmission) development may further contribute to the issue, namely when located in the vicinity (or within) protected forests in Konawe and Konawe Selatan regency.

Coastal ecosystems (e.g. Tiworo Strait above Muna Island and regional aquatic conservation area in Lituwongkili Island, Buton Regency) will continue to experience pressure connected to watershed management problems – increased transport of sediments and their accumulation,

20 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

and associated water quality problems in the coastal ecosystems. In addition, impacts of increased marine traffic and pollution related to harbour logistical operations will likely contribute to the ecosystem stress in Wakatobi Marine National Park. Of specific concern are the potential effects of MP3EI envisaged Fisheries node. Any intensification of fishing and aquaculture activities in the area rich in sensitive coastal and small island ecosystems may trigger significant irreversible environmental impacts.

Socio-economic Aspects The interventions aimed at improvement of efficiency of cocoa production sector might have certain potential to cause social conflicts related to market competition between small plantation holders and large-scale industrial plantations. Further developments to the mining and metal processing sector as well as overall acceleration of economic development in the area can attract immigration, namely direct settlements with new oportunities (new mining sites or industrial projects). This in turn can lead to tensions between newcomers and the local population as it can add pressure on the existing social services and infrastructure (capacity of health services, safety and law enforcement, waste management, etc.).

Coastal development and increased fishing activity (ports infrastructure and Fisheries node) in the area of diverse and sensitive coastal and archipelago environments can have negative impacts on the sustainability of fishing yields, thus negatively affecting the livelihood and social situation of fishing communities.

2.3.7 Others Besides issues of strategic importance that can be attributed to a certain extent to one or several of above identified “areas of concern”, the other environmental problems potentially relevant to the MP3EI implementation have more universal nature and will likely appear across the whole territory of Sulawesi EC. It is likely that issues such as deforestation and water resources degradation with different intensity will be present beyond the above identified “areas of concern”. Similarly the issue of unsustainable fishing and corresponding loss of fishing stocks cannot be attributed to a single specific area, but has a wider, regional or even national dimension. The implementation of measures to provide incentives for the fisheries sector (i.e. fishery nodes in South, Southeast and North Sulawesi) thus needs to be regarded as a potential risk considering the already existing depletion of fish stocks and decrease of population of some economically important fish species recorded throughout the Indonesia.

2.4 Summary of Scoped Issues for Further Analysis

Following on from the initial scoping analysis, each identified strategic issue was then considered in terms of the potential geographic locations in which the conflict could occur. Table 2.2 presents a summary of the identified likely strategic conflicts for further analysis along with details of the Sulawesi EC areas affected, which will be addressed in the next SEA stages.

Table 2.2 Issues for further SEA analysis related to corresponding areas of Sulawesi EC

Type Conflict Areas of concern

Makassar broader area, Environmental Increase of air pollution from economic Manado-Bitung area, Palu Quality activities (e.g. mining, processing) broader area

Type Conflict Areas of concern

Makassar broader area Increase of water pollution and water including likely affected resources degradation due to economic watershed (e.g. Jeneberang, activities (e.g. fisheries, mining, Tallo); Matano, Towuti and processing) Mahalona lakes system; Manado-Bitung area

Land and soil degradation due to mining Gorontalo, Palu broader and food-agriculture/ cocoa plantation area, Southeast Sulawesi activities

Further deforestation due mining and Gorontalo, forests agriculture activities (e.g. cocoa surrounding of Matano, plantation, food-agriculture), including Towuti and Mahalano lakes impact on legally protected areas system, Southeast Sulawesi

Habitat fragmentation and loss of Endemic freshwater biodiversity (e.g. endemic species) due to species in Matano, Towuti Ecosystem infrastructure development and economic and Mahalano lakes system activities

Coastal ecosystem in Further coastal ecosystem degradation Manado-Bitung; Buton due to fisheries activities and ports island, Southeast Sulawesi; development Makassar city (Kapoposang Marine Recreational Park)

Increased pressures on water and waste Urban areas in Makassar, management capacities in urban areas Manado, Bitung and Palu

Land use conflict over customary land and Central Sulawesi indigenous communities

Central Sulawesi, Gorontalo, Land use conflict between industrial plantations and subsistence farming Southeast Sulawesi

Socio-economic Public health risks related to Makassar, Manado, Bitung, environmental quality (air, water and food Palu and urban areas in contamination) Kotabaru regency

Flood risks area in Makassar, Seismic area in North Sulawesi (Mando- Increased need for disaster risks Bitung), Palu broader area management and Matano-Towuti- Mahalona lakes broader area

22 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

2.5 Preliminary Recommendations

Following the internal scoping exercise, the following preliminary recommendations are proposed.

2.5.1 Agroindustry Implementation of measures to promote agricultural production should be accompanied with requirement so that the development of cocoa producing areas is based on the good practice of sustainable cocoa production including principles such as:

• Only revitalization and improvement of the current plantations are allowed (instead of expanding new plantation areas).

• Improvement of organizational structure and financial management (e.g. accessible advisory services for local farmers).

• Integrated management of resources across all agriculture sectors (e.g. utilization of organic waste from animal husbandry as fertilizers).

Further, the irrigation capacities should be planned in the context of integrated watershed management planning, in order to prevent depletion and degradation of water resources.

Areas producing palm oil should be firmly established / limited in line with principles outlined in the Roundtable on Sustainable Palm Oil (RSPO) Production / Meja Bundar untuk Produksi Kelapa Sawit Berkelanjutan.

Within the context of Sulawesi EC, a particular attention should be given to the following areas:

• Mamuju regency, West Sulawesi (cocoa plantation) • Kolaka regency, Southeast Sulawesi (cocoa) • Parigi moutong and Poso regency, Central Sulawesi (cocoa)

In addition, it is suggested that within the framework of MP3EI / RPJMN Policy, the above mentioned principles of the ‘Roundtable on Sustainable Palm Oil Production’ should be legislated, enacted and enforced. Similarly, enactment and enforcement of the best practices of sustainable cocoa production (e.g. Ministry of Agriculture strategy on cocoa production; Gerakan Nasional Peningkatan Produksi dan Mutu Kakao) shall be ensured.

2.5.2 Heavy Industry and Connectivity – Power Generation In order to prevent unintended adverse environmental impacts, all planned industrial zones and identified pollution ‘hot spots’ (areas with already high concentration of pollution-intensive activities) should undergo a focused strategic environmental assessment to determine the likelihood for cumulative environmental quality impacts and to determine the need to:

• Relocate the planned industrial activities and/or • Implement retroactive and future programmes to achieve cleaner production

Particular attention in Sulawesi EC should be given to the following areas:

• Broader Makassar area • Broader Bitung area • Morowali, Luwu Timur and Kolaka Utara regency

At the MP3EI / RPJMN Policy level, introduction of stricter air and water quality standards, application of BAT (Best Available Technologies) in all new EIA / AMDAL (permitting procedures), and permit renewals, should be ensured.

2.5.3 Mining In order to minimize potential for adverse environmental impacts, it is advised to develop strict mining site selection criteria for the EC/Provinces and require that all future mining applications (via EIA procedures) comply. For Sulawesi EC, these criteria should particularly exclude mining in the following sensitive areas:

• Luwu Timur, North Kolaka, Morowali regency (nickel) • Gorontalo (gold) • Banggai regency (oil & gas)

In addition, considering the natural conditions in Sulawesi EC, it is advised to design and implement proper risk management plans for mining developments adjacent to disaster prone areas (e.g. volcano eruption, seismic activities, flood, tsunami). Particular attention should be given to these following sensitive areas:

• Central Sulawesi (seismic activities) • North Sulawesi (seismic and flood risks) • Towuti, Matano and Mahalona lakes surrounding area (seismic activities)

At the level of MP3EI / RPJMN Policy it is necessary to introduce strict mining regulations related to the facilities design as well as both operational and post-closure management. The following aspects shall be addressed:

• Hazardous material and tailings ponds (including restriction on deposition of tailings/mining waste to the rivers/sea).

• Site water and waste management.

• Site closure (re-cultivation).

• Legal liability of the site/project developer in relation to emission, contamination or accidents.

2.5.4 Connectivity In order to minimize risks of direct negative environmental impacts, it is advised to develop new planning rules for the routing of roads or location of ports and/or required mitigation measures (e.g. establishing ecological corridors, compensation actions). It is also recommended to extend water and wastewater management initiatives for all growing urban centres within Sulawesi EC, as well as initiatives supporting alternative and clean public transport systems. Particular attention in Sulawesi EC should be given to the following areas:

• Makassar area (coastal developments/ports, energy)

• Bantimurung-Bulusaraung National Park (upgrading of existing road from Siwa-Pare-pare- Barru-Marros-Makassar)

• Central Sulawesi (upgrading road)

• Greater Bitung area (ports)

• Palu city (energy generation)

24 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Internal Scoping

In addition, it is recommended to design and implement proper risk management plans for connectivity developments adjacent to disaster prone areas (e.g. volcano eruption, seismic activities, flood, tsunami), namely in North Sulawesi (volcano and flood risks), and Central Sulawesi (seismic activities).

The MP3EI / RPJMN Policy should set strict goals, investment levels, and operationalized steps to meet national goals for clean drinking water, sustainable modes of transportation, and wastewater/waste management.

2.5.5 Coastal development While planning activities / interventions (i.e. projects in various sectors related to connectivity {e.g. ports, power generation}, agriculture, fisheries, industry, mining, and tourism), in areas of intense coastal development, the application of ‘Integrated Coastal Zone Management’ (ICZM) should be applied to avoid cumulative impacts from uncoordinated development of MP3EI projects and other initiatives. In this regard, particular attention in Sulawesi EC should be given to the following areas:

• Coast of Makassar strait (ports, aquaculture) • Coast of Bitung and Manado city (ports) • Coast of Buton island (ports) • Coast of Talaud and Sangihe islands (ports) • Wajo regency (aquaculture)

While implementing the MP3EI fisheries activities, the compliance with Indonesian Fisheries Management Zones (Wilayah Pengelolaan Perikanan) shall be ensured. MP3EI / RPJMN Policy should ensure that the conditions for the application of the ICZM are fully legislated, enacted and enforced for all relevant coastal activities.

2.5.6 Social concerns In order to address social dimension (namely potential conflicts) promptly, it is recommended to ensure that EC developments respond to the needs for quality and capacity of services in urban areas (waste management, clean water and sanitation, education and health services) taking into consideration the expected intensification of migration flows and presence of considerable migrant population. Particular attention in Sulawesi EC should be given to the areas of Makassar, and to the region of Bitung and Manado.

In addition, it is important to ensure that EC developments respect the livelihoods and territorial rights of indigenous people to avoid social conflict. In this regard, particular attention in Sulawesi EC should be given to the following areas:

• Customary lands in Towuti, Mahalona dan Matano lakes system • Customary lands adjacent to Palu city • Customary lands in Morowali and Luwu Timur regency

At the level of MP3EI / RPJMN Policy it is advised to ensure the coordinating and technical assistance of the responsible ministries (i.e. Coordinating Ministry of Social Welfare, Ministry of Health, etc) are in line to systematically address social issues resulting from the MP3EI developments. It is further advised to ensure the availability of financial funds to develop infrastructure and services necessary to accommodate anticipated additional needs resulting from the MP3EI developments as well as to ensure the streamlining / coordination of policy related to acknowledgement and protection of customary lands and indigenous peoples’ rights.

3 Stakeholder Consultation

Stakeholder or Public Consultation is a key part of the SEA process. Consultation constituents a key procedural step after the internal scoping analysis. Results of the consultation process will be combined with the Scoping results and feed into the further detailed analysis of identified strategic environmental and social issues.

Public and stakeholder consultation is a legal requirement of SEA as per Law No. 32/2009 concerning Environmental Protection and Management (Article 18, paragraph (1)) and the State Ministry of Environment’s Regulation No. 09/2011 concerning General Guidelines on Strategic Environmental Assessment (Introduction; Sections 3, 5, and 6).

Public consultation helps to ensure that the outputs and conclusion given by SEA are justifiable, and to keep the community and decision makers informed in likely environmental and social consequences of implementation of documents assessed. Optimally, consultation should:

• Enhance the legitimacy of Policy, Plan and Program (PPP) for the community • Contribute to ensure the commitment of all involved stakeholders • Allow additional information to be gathered • Gain an overview of the relationship between community groups and institutions

Public and stakeholder consultations were held in Makassar by inviting the relevant EC governmental stakeholders as well as representatives of NGOs and academic sectors to address their concerns of strategic conflicts likely resulting from MP3EI projects.

3.1 Organisation and Methodology

The organisation and methodology of the Scoping Workshops are explained below in relation to who attended, along with a brief explanation of the approaches taken.

3.1.1 Stakeholder Mapping and Workshops Attendees Stakeholder mapping was carried out during the SEA Inception Phase for the purpose of all consultative initiatives for the Project. The approach to developing a list of attendees for the Sulawesi Scoping Workshop was to invite the same attendees and organisations that were invited to the Pre-Scoping workshop. This list was communicated with both Bappenas and the KLH; and, after some minor revisions, the attendee list was finalised. Key stakeholders organisations that participated in the sessions included Bappeda, BLHD, PPE (Ecoregion Office), academics, professional associations, and NGOs.

The Stakeholders that attended the workshop are detailed further within Appendix D.

3.1.2 Objectives and Approach The objectives of the Stakeholder Consultation for the Sulawesi EC SEA were:

• To carry out planning level ‘scoping’ capacity building for future application for the involved agencies and, also, to enhance stakeholder feedback

• To present preliminary findings from Internal Scoping

• To document and respond the questions or concerns from stakeholders for consideration in subsequent analysis stages of the SEA

26 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation

• To obtain additional baseline information and expert input that will aid subsequent analysis stage of the SEA

This approach for achieving these objectives was to hold a day and half workshop, where the first third of the workshop was dedicated to capacity building and the last two thirds of the workshop was focused on presenting Internal Scoping results and obtaining feedback from the workshop participants.

The session included tailored presentations or exercises, with supporting information in the form of hand-outs and maps distributed to the attendees. The approaches and content for the workshop are further explained in the underlying bullets points.

• Capacity building slides aimed to communicate

- The position of ‘scoping’ within the overall SEA process as well as its strengths and limitations

- Various methods and tools for scoping

- What ‘good’ scoping consist of

- The MP3EI approach and GIS database

- Presenting generic animated slides illustrating the definition of strategic issues at the EC level and further illustrating this with real mapped examples uncovered from the MP3EI internal scoping

- Carrying out a hands-on scoping exercise of an identified area of concern

• Internal Scoping results focused on presenting or seeking

- The importance of stakeholder input and position of the scoping analysis with the overall MP3EI EC SEA process

- The EC projects and Strategies (e.g. Nodes and KPIs)

- Each ‘Area of Concern’ and carefully outlining key baseline features, the MP3EI plans, and the key strategic risk identified

- Immediate comments or feedbacks from the stakeholders regarding the findings

- Preliminary recommendations

- Opening the floor in plenary style discussions.

During this consultation, a preliminary finding presentation was given to the audience of stakeholder and public representatives, with supporting information in the form of hand-outs and GIS maps distributed and/or presented to the attendees.

The Stakeholder Consultation was conducted in Makassar on 11-12 March 2014. The outline of the workshop agenda is presented in Table 3.1.

Table 3.1 Agenda for Sulawesi EC stakeholder consultations

Time Agenda Day 1, 11 March 2014 (Half Day) 12.00 – 13.00 Registration and lunch Opening 13.00 – 13. 15  Opening speech from KP3EI Connectivity Working Group  Opening speech from EC PIC Ministry Introduction to MP3EI SEA 13.15 – 13.35  Review of General & MP3EI SEA processes  Scoping Phase Session I: SEA Scoping Methods and Principles a. Purpose 13.35 – 14. 20 b. Common Approaches and Limitations c. MP3EI Approach/ GIS Overlay-Matrix 14.20 – 14. 35 Coffee Break Session II: Hands-on Scoping Exercise a. Definition of strategic issues 14.35 – 16.05 b. Application of scoping matrices c. Example how to use GIS Database d. Execution of hands-on scoping for MP3EI cases 16. 05 – finish Wrap up and closing 19.00 – finish Dinner Day 2, 12 March 2014 (Full Day) 08.00 – 09.00 Morning registration Introduction  General Review of MP3EI SEA and Objectives of 09.00 – 09.45 Consultation Sessions  Overview of MP3EI Policies, Plans and Programs in EC  Definition of Strategic Issues 09.45 – 10.00 Coffee Break Session I : Internal Scoping Findings a. Scoping Approach/Expert Scoping 10.00 – 12.30 b. Presentation of internal scoping findings of MP3EI SEA team using GIS maps c. Discussion and Q&A. 12.30 – 13.30 Lunch 13.30 – 14.30 Continued previous session (If needed) 14.30 – 15.00 Session II : Preliminary recommendations for EC SEA 15.00 – 15.30 Coffee Break 15.30 – 17. 00 Session III : Plenary discussion 17.00 – 17.15 MP3EI Next Steps 17.15 Closing ceremony

28 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation

3.2 Summary of Key Feedback

The key stakeholders´ comments were concerned with the likely environmental and social impacts of the MP3EI planning in the economic corridor, and the planned connectivity infrastructure. This includes concerns over environmental carrying capacity of the region/provinces in relation to MP3EI economic activities (fisheries, minings, heavy industries, cocoa plantation etc); risks and impacts to important ecosystems and biodiversity in the region, and how will traditional culture (including customary rights) be impacted by the new development driven by MP3EI.

In summary, over 20 concerns and substantive comments were raised, addressing situations in individual “areas of concern” (so-called hotspot) identified within Sulawesi EC. Table 3.2 provides the list of these key concerns

Table 3.2 Comments obtained during Stakeholder consultation session for Sulawesi EC

No. Key Concern

South Sulawesi (Makassar Broader Area)

MP3EI economic activities have a potential to increase pressure on land and soil, and water 1 resources capacity in South Sulawesi especially in the Jeneberang river watershed.

MP3EI development will likely to exacerbate the water quality problems in whole watersheds 2 (e.g. Tallo river that has already been polluted and suffered from other forms of degradations from activities upstream)

3 To include disaster management (flood risks in Makassar) in the strategic issues

4 MP3EI is likely to further increase coastal reclamation effort in Makassar and Maros Regency

Further energy capacities needed (energy generation from both coal and hydro) for urban 5 and industrial activities in Makassar. At the same time, water resources infrastructure for hydro energy contributes to the increase of environmental stresses

North Sulawesi (Manado-Bitung Area)

1 Toll road development will conflict with sensitive areas

Unrestricted growth of Special Economic Zones in Bitung (involving reclamation and 2 mangroves removal) to be further increased by MP3EI

Potential land conversion (nature reserve into production forest) can trigger floods, 3 especially relevant in Tondano lakes systems

Bitung international hub will trigger changes of livelihood (e.g. subsistence fishermen will be 4 negatively affected)

Towuti, Mahalona and Matano Lakes Broader Area

1 MP3EI mining activities will negatively affect the swamp biodiversity in the lakes area

Increase of water resources contamination (both surface and groundwater) from MP3EI 2 mining and processing

No. Key Concern

Palu Broader Area

Water resources degradation (i.e. water shortage and pollution) in Poso lake and related 1 watershed due to mining and other existing activities

Coastal reclamation from Palu to Donggala trigger protests from the community and can 2 have impact on coastal degradation

3 Spatial conflicts between oil palm plantations and food-agriculture activities

Increasing pressure to coastal ecosystem in Tomini Bay due to upstream pollution and 4 industrial development

Autonomous development of Special Economic Zones in Palu combined with indicated 5 investment of Cocoa and Automotive will have impact to environmental quality and in- migration related problems

Plantation development will likely threaten the terrestrial habitat in Nature reserve Pangi 6 Binangga (e.g. Maleo birds)

Gorontalo

1 Cases of fish exports affected by heavy metals contamination of the product

2 Oil palm plantation conflict with food agriculture activities

3 Impact to large conservation areas in the eastern part

Other key concerns relevant to Sulawesi

1 Impact on future fish stock from intensive fisheries activities

3.3 Relevance for Scoped Issues

The comments obtained during consultations as indicated within Table 3.2 above, were generally in line with the issues as presented in Section 2 (Strategic Issues in Areas of Concerns). In some cases the comments have helped to improve understanding to the baseline situation and suggested specific locations for more detailed analysis (e.g. information on water quality situation in Tallo watershed, South Sulawesi). Concerns about water supply and flood risks management in Makassar area provided valuable advice in terms of focusing further SEA analysis. Similarly, the comments from stakeholders have helped to improve understanding of complexity of issues affecting water quality in lake systems of Poso, Tondano, and others. Of high value were comments helping to identify potential specific conflicts between planned developments and protected biodiversity (e.g. potential conversion of habitat in Nature reserve Pangi Binangga relevant for Maleo bird protection).

When discussing issues of a socio-economic nature, again, comments obtained were in general consistent with findings reached during internal scoping. Details on the situation in the Palu area and the potential for further social conflicts will help focus further SEA analyses concerning social issues.

The stakeholder discussion has confirmed the internal scoping finding, that concerns about environmental and social consequences of the fisheries sector development (as proposed within the MP3EI) are highly relevant across the whole EC and cannot be separated from the nation-

30 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation

wide trends and problems (fishing stocks management (and protection), and allocation of fishing rights).

In general, a number of comments focused on specific issues, e.g. planning conflicts at the regency or municipality level, or at a level more suitable for further assessment through an individual project assessment (i.e. through EIA / AMDAL process). However, all comments provided during the consultations session were noted for the further consideration during the next stages of the SEA.

4 Priorities for Further Analysis

The results presented in this section were obtained from a synthesis of the results from the internal scoping workshop (Section 2) and the feedback from the stakeholder consultation workshop (Section 3). In terms of identifying the key strategic environmental issues, the findings can be summarised under three major categories.

Environmental Quality Implementation of the MP3EI will lead to intensification of current trends in terms of water and air pollution as a result from both increased economic activity (particularly in pollution-intensive industries such as mining and mineral processing), increased urbanization and infrastructure development at the expense of forests and other natural ecosystems. An intensification of agriculture is likely to contribute to further land and soil degradation (erosion, contamination) and together with the effects of mining can have significant negative impacts on water regime in the affected watersheds. It can also result in potential negative environmental and socio-economic impacts downstream.

Ecosystem Forest-based ecosystems are likely to experience intensification to already severe pressure. Land conversions triggered by demand for agriculture land (namely plantation) by urban development are likely to continue even in formally protected areas, as existing enforcement of environmental protection is often inconsistent. Habitat loss and fragmentation due to infrastructure development and increased economic activities will lead to the loss of biodiversity, especially impacting the already endangered species. In case of Sulawesi EC, an important role in biodiversity such as the lake ecosystems are particularly vulnerable to factors likely enhanced by the MP3EI implementation such as increased agricultural and industrial pollution, water consumption and deforestation of watersheds draining into the lake ecosystems. Coastal and marine ecosystems experience similar pressures not only from coastal and infrastructure development but also from on-shore strip mining leading to water pollution and increased sediment loading.

Socioeconomic Aspects Urban and industrial developments enhanced by the MP3EI planning are likely lead to increased pressures on existing capacities for both water supply and waste management. Particularly with unplanned urban growth occurring as a side-effect of improved employment and livelihood opportunities attracting migration from rural areas or other regions, this can lead to slum development, and other unwanted effects. If left unmanaged, the pollution resulting from accelerated development (in agriculture, industry, traffic, and other sectors) may result in the increase risks to public health, and consequently to increased pressure on public health services. Urbanisation and expansion of industrial sites and cultivated land increases the risk of conflicts between developers and indigenous communities over customary land. Changes in economic environment and rapid new development can also be a source of social conflict as it often poses a challenge to traditional livelihoods and cultural values of indigenous people and/or increase social exclusion of disadvantaged groups (e.g. with their lack of education).

The specific strategic issues in need of further analysis are outlined in more detail for each of the sustainability receptors in Table 4.1 below.

32 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Priorities for Further Analysis

Table 4.1 Summary table of EC strategic issues for further analysis

Areas of Specific Areas for Receptor Type Identified Strategic Issues concern Further Analysis Makassar broader Main urban areas, Increase of air pollution from area, Manado- transportation hubs – economic activities (e.g. Bitung area, Palu e.g. Makassar and mining, processing) broader area Bitung ports Likely affected watersheds in Makassar area (e.g. Makassar broader Jeneberang, Tallo). Increase of water pollution and area; Matano, Lakes Matano, water resources degradation Towuti and Towuti and due to economic activities Mahalona lakes Mahalona, lake (e.g. agriculture, fisheries, system; Manado- Poso, Palu river mining & processing) Bitung area Environmental system, lake and Quality river system Tondano Areas of application of Agriculture-related MP3EI measures Gorontalo, Palu (investment nodes) –

broader area, Gorontalo, South Land and soil degradation due Southeast Sulawesi, Southeast to mining and food-agriculture/ Sulawesi Sulawesi and Palu cocoa plantation activities Central Sulawesi broader area. Matano, Towuti and Mahalano lakes system Further deforestation due to Gorontalo, Forests surrounding mining and agriculture Matano, Towuti Matano and Towuti activities (e.g. cocoa and Mahalano lakes system, forests plantation, food-agriculture), lakes system surrounding including impact on legally area, Southeast Gorontalo and Bone protected areas Sulawesi Bolango regency Lakes Matano, Towuti and Across the EC Mahalona, lake territory, Habitat fragmentation and loss Poso, Palu river East Gorontalo, of biodiversity (e.g. endemic system, lake and Manado Bitung species) due to infrastructure river system area, Ecosystem development and economic Tondano, Southeast activities Protected areas in Sulawesi North Sulawesi.

Small islands in Southeast Sulawesi

Coastal Buton island, Further coastal ecosystem ecosystem in (Kapoposang Marine degradation due to fisheries Manado-Bitung; Recreational Park), activities and ports Southeast Nain Island development Sulawesi; (Bunaken National Makassar area Park)

Areas of Specific Areas for Receptor Type Identified Strategic Issues concern Further Analysis Urban areas in Increased pressures on water Urban areas in Makassar, and waste management Makassar, Manado, Manado, Bitung capacities in urban areas Bitung and Palu and Palu Land use conflict over customary land and Central Sulawesi Palu broader area indigenous communities Areas of application of Agriculture-related Central Sulawesi, MP3EI measures Land use conflict between Gorontalo, (investment nodes) – industrial plantations and Southeast Gorontalo, South subsistence farming Sulawesi Sulawesi, Southeast Sulawesi and Palu broader area. Socio-economic Makassar, Makassar, Manado, Public health risks related to Manado, Bitung, Bitung, Palu and environmental quality (air, Palu and urban urban areas in water and food contamination) areas in Kotabaru Kotabaru regency regency Flood risks area Jeneberang in Makassar, watershed Seismic area in Volcanic area in North Sulawesi North Sulawesi Increased need for disaster (Mando-Bitung), Seismic event-prone risks management Palu broader area area in Southeast and Matano- Sulawesi (Morowali Towuti-Mahalona and Luwu Timur lakes broader regency) area

34 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

List of Reference

5 List of Reference

Kementerian Koordinator Bidang Perekonomian. 2013. Draft Revisi Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia. Jakarta: Kemenko

Kementerian Lingkungan Hidup. 2007. Laporan Pelaksanaan Pemantauan Kualitas Air di 33 Provinsi. Jakarta: KLH

Kementerian Lingkungan Hidup. 2008. Status Lingkungan Hidup Indonesia 2007. Jakarta: Kementerian Lingkungan Hidup (KLH)

Kementerian Lingkungan Hidup. 2011. Status Lingkungan Hidup Ekoregion Sulawesi. Makassar: PPE Sulawesi Maluku

Law No 32 of 2009 regarding Environmental Protection and Management (Undang-undang Perlindungan dan Pengelolaan Lingkungan Hidup)

Urip Darmayasa. “Taman Nasional Taka Bonerate” accessed on 26th March 2014 at http://cerita.kbatur.com/taman-nasional-takabonerate/

This page is intentionally left blank

36 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

APPENDICES

This page is intentionally left blank

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

APPENDIX A – List of Baseline Data Contributor

This page is intentionally left blank

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Baseline Data Sources

A Baseline Data Sources

A.1 National Data

Data Date No. Content Language Source Format Received

1 Land Ecoregion Map SHP Bahasa Ministry of Environment 22-07-13

2 Sea Water Quality Monitoring in Indonesia Book Bahasa Ministry of Environment 22-07-13

3 Lake Water Quality Monitoring in Indonesia Book Bahasa Ministry of Environment 22-07-13

4 Population Excel English Statistic Indonesia 26-07-13

5 Illiteracy Rate Excel English Statistic Indonesia 26-07-13

6 School Participation Rate 2012 Excel English Statistic Indonesia 26-07-13

7 Percentage of Poor People Excel English Statistic Indonesia 26-07-13

8 Indonesia Basemap (Regency, Province) SHP Bahasa Bappenas 30-07-13

9 Indicative Moratorium Map Rev. 4 SHP English UKP4 30-07-13

10 MP3EI Road SHP English Bappenas 30-07-13

11 Investment Focus Area SHP English Bappenas 30-07-13

12 MP3EI Infrastructure Project SHP Bahasa Bappenas 30-07-13

13 GDP Rate Excel English Bappenas 28-08-13

14 Open Unemployment Excel English Bappenas 28-08-13

15 Indonesia Conservation Areas Map SHP English Ministry of Forestry 30-08-13

16 Moratorium Area Map (Forest, Peatland) SHP Bahasa Ministry of Forestry 30-08-13

17 Mangrove Area Map SHP Bahasa Ministry of Forestry 30-08-13

18 Fire Hotspot 2005 - 2013 SHP English Ministry of Forestry 02-09-13

19 Peatland SHP English Ministry of Forestry 02-09-13

20 Mangrove Area Map SHP English Ministry of Forestry 02-09-13

21 World Heritage SHP English UNESCO 06-09-13

22 Health facilities by province PDF Bahasa Statistic Indonesia 13-09-13

23 HIV/AIDS Cases PDF English Statistic Indonesia 13-09-13

24 Malaria Cases PDF English Statistic Indonesia 13-09-13

A-1

Data Date No. Content Language Source Format Received

Ministry of Marine Affair 25 Marine Protected Area SHP English 18-09-13 and Fisheries

World Resources 26 Oil Palm 2010 SHP English 23-09-13 Institute

27 Kalimantan Island Spatial Planning (RTRW) SHP Bahasa Ministry of Public Works 27-09-13

28 Sumatera Island Spatial Planning (RTRW) SHP Bahasa Ministry of Public Works 27-09-13

29 Jawa-Bali Island Spatial Planning (RTRW) SHP Bahasa Ministry of Public Works 27-09-13

30 Sulawesi Island Spatial Planning (RTRW) SHP Bahasa Ministry of Public Works 27-09-13

31 Maluku Islands Spatial Planning (RTRW) SHP Bahasa Ministry of Public Works 27-09-13

32 Papua Island Spatial Planning (RTRW) SHP Bahasa Ministry of Public Works 27-09-13

Nusa Tenggara Islands Spatial Planning 33 SHP Bahasa Ministry of Public Works 27-09-13 (RTRW)

34 MP3EI Main Activities SHP Bahasa KP3EI 07-10-13

LIPI (Indonesian Institute 35 Coral reefs distribution SHP Bahasa 21-10-13 of Science)

LIPI (Indonesian Institute 36 Sea grass distribution SHP Bahasa 22-10-13 of Science)

37 Land Cover 2006, 2009, 2011 SHP Bahasa Ministry of Forestry 23-10-13

Deforestation 2003-2006, 2006-2009, 2009- 38 SHP Bahasa Ministry of Forestry 23-10-13 2011

39 Indicative Moratorium Map Rev. 4 SHP Bahasa Ministry of Forestry 23-10-13

40 Peatland (source: Ministry of Agriculture) SHP Bahasa Ministry of Forestry 23-10-13

41 Illiteracy Rate 2011 and 2012 Excel English Statistic Indonesia 23-10-13

42 School Participation Rate 2011 and 2012 Excel English Statistic Indonesia 23-10-13

BNPB (National Agency 43 Disaster Maps GDB English 24-10-13 for Disaster)

BNPB (National Agency 44 Disaster Risk Maps GDB English 24-10-13 for Disaster)

Ministry of Marine Affairs 45 Coral reefs distribution SHP English 31-10-13 and Fisheries

Ministry of Marine Affairs 46 Sea grass distribution SHP English 31-10-13 and Fisheries

Ministry of Marine Affairs 47 Mangrove distribution SHP Bahasa 31-10-13 and Fisheries

A-2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Baseline Data Sources

Data Date No. Content Language Source Format Received

48 Indonesia Land Customary JPEG Bahasa Ministry of Environment 06-11-13

Wetlands International 49 Peatland SHP English 12-11-13 Indonesia

Orangutan, Tiger, Elephant, and Maleo Wildlife Conservation 50 SHP English 12-11-13 distribution Society

51 Important Bird Area SHP English Burung Indonesia 20-11-13

Fauna and Flora 52 Aceh forest 2006, 2009, 2011 SHP English 22-11-13 International

Fauna and Flora 53 Orang Utan distribution in Aceh 2007 SHP English 22-11-13 International

Fauna and Flora 54 Elephant habitat in Aceh 2009 SHP English 22-11-13 International

Fauna and Flora 55 Tiger Distribution in Aceh 2009 SHP English 22-11-13 International

Waters Concervation Area in Aceh 2012- Fauna and Flora 56 SHP Bahasa 22-11-13 2013 International

Fauna and Flora 57 Mammals in Central Kalimantan SHP Bahasa 22-11-13 International

Fauna and Flora 58 Orang Utan Habitat in Borneo SHP English 22-11-13 International

Fauna and Flora 59 HCV Wild Life in Ketapang SHP Bahasa 22-11-13 International

Dipterocarpaceae, Migran Bird, Tiger 2011 in Fauna and Flora 60 SHP Bahasa 22-11-13 Lombok International

Fauna and Flora 61 Mammals in Nusa Kambangan SHP English 22-11-13 International

Elephant and Tiger in Kerinci Seblat National Fauna and Flora 62 SHP Bahasa 22-11-13 Park International

Fauna and Flora 63 Tiger in West Sumatera SHP Bahasa 22-11-13 International

64 Sumatera Vision SHP Bahasa WWF-Indonesia 26-11-13

65 Kalimantan Vision SHP Bahasa WWF-Indonesia 26-11-13

66 Papua Vision SHP Bahasa WWF-Indonesia 26-11-13

67 Sumatera IBA and KBA SHP Bahasa WWF-Indonesia 26-11-13

68 Traditional Site_Merauke SHP English WWF-Indonesia 26-11-13

A-3

Data Date No. Content Language Source Format Received

69 Settlement_Asmat SHP Bahasa WWF-Indonesia 26-11-13

70 Settlements_Mappi SHP Bahasa WWF-Indonesia 26-11-13

BIG (Badan Informasi 71 Customary Land SHP Bahasa 17-12-13 Geospasial)

BIG (Badan Informasi 72 Custom Community SHP Bahasa 17-12-13 Geospasial)

BIG (Badan Informasi 73 Mangrove SHP Bahasa 17-12-13 Geospasial)

A.2 Sulawesi EC Data

No Content Data Format Language Province Data Received

1 RAD (Rencana Aksi Daerah) GRK DOC and PDF Bahasa Gorontalo 29/10/2013 Gorontalo 2012

2 Luas Terumbu Karang, Mangrove dan XLS Bahasa Gorontalo 7/10/2013 Lamun

3 Data Rehabilitasi Mangrove dan XLS Bahasa Gorontalo 7/10/2013 Terumbu Karang

4 RIPPDA (Rencana Induk PDF Bahasa Gorontalo 16/10/2013 Pembangunan Pariwisata Daerah)

5 KLHS RTRW DOC Bahasa Gorontalo 8/10/2013

6 RPJMD Prov Gorontalo 2012-2017 DOC and XLS Bahasa Gorontalo 16/10/2013

7 Usulan dan Validasi Pelaksanaan DOC and XLS Bahasa Gorontalo 29/10/2013 Proyek Strategis MP3EI Prov. Gorontalo

8 Peta Struktur Ruang PDF (Jpeg) Bahasa Gorontalo 8/10/2013

9 Peta Pola Ruang PDF (Jpeg) Bahasa Gorontalo 8/10/2013

10 Peta Kawasan Strategis PDF (Jpeg) Bahasa Gorontalo 8/10/2013

11 Peta Administrasi PDF (Jpeg) Bahasa Gorontalo 8/10/2013

12 Peta Rawan Bencana Banjir PDF (Jpeg) Bahasa Gorontalo 8/10/2013

13 Peta Rawan Bencana Gempa Bumi PDF (Jpeg) Bahasa Gorontalo 8/10/2013

14 Peta Rawan Bencana Tanah Longsor PDF (Jpeg) Bahasa Gorontalo 8/10/2013

15 Peta Rawan Bencana Tsunami PDF (Jpeg) Bahasa Gorontalo 8/10/2013

A-4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Baseline Data Sources

No Content Data Format Language Province Data Received

16 Peta Kawasan Lindung PDF (Jpeg) Bahasa Gorontalo 8/10/2013

17 Peta Kawasan Rawan Bencana PDF (Jpeg) Bahasa Gorontalo 8/10/2013

18 PERDA No.4 Tahun 2011 Tentang PDF Bahasa Gorontalo 8/10/2013 RTRWP Gorontalo 2010-2030

19 RPJPD Gorontalo 2007-2025 PDF Bahasa Gorontalo 7/11/2013

20 SLHD Gorontalo 2013 PDF Bahasa Gorontalo 7/11/2013

21 RTRW SULBAR (Peta Rencana SHP (GIS Data) Bahasa Sulawesi Barat 8/10/2013 Kawasan Khusus)

22 RTRW SULBAR (Peta Rencana Pola) SHP (GIS Data) Bahasa Sulawesi Barat 8/10/2013

23 RTRW SULBAR (Peta Rencana SHP (GIS Data) Bahasa Sulawesi Barat 8/10/2013 Struktur)

24 Daerah Dalam Angka 2012 PDF Bahasa Sulawesi Barat 8/10/2013

25 Materi Teknis RTRW DOC Bahasa Sulawesi Barat 8/10/2013

26 RAD GRK Sulbar DOC Bahasa Sulawesi Barat 8/10/2013

27 RPJMD Sulbar DOC and XLS Bahasa Sulawesi Barat 8/10/2013

28 Draft RPJMD 2013-2018 PDF Bahasa SulawesiSelatan 8/10/2013

29 RTRW Sulses 2008-2028 PDF Bahasa Sulawesi Selatan 8/10/2013

30 Album Pola dan Struktur 2008-2028 JPEG Bahasa Sulawesi Selatan 8/10/2013

31 Buku Rencana RTRW 2008-2028 PDF Bahasa Sulawesi Selatan 9/10/2013

32 Perda RTRW 2009 PDF Bahasa Sulawesi Selatan 9/10/2013

33 RPJPD Sulsel PDF Bahasa Sulawesi Selatan 9/10/2013

34 Sulses Dalam Angka 2013 PDF Bahasa Sulawesi Selatan 9/10/2013

35 Kawasan Hutan Sulsel SHP (GIS Data) Bahasa Sulawesi Selatan 8/10/2013

36 Coral Reef Indonesia SHP (GIS Data) Bahasa Sulawesi Selatan 8/10/2013

37 DAS Indonesia SHP (GIS Data) Bahasa Sulawesi Selatan 8/10/2013

38 Deforestasi Indonesia 2008 PDF Bahasa Sulawesi Selatan 8/10/2013

39 Tutupan Lahan 2007 PDF (Jpeg) Bahasa Sulawesi Selatan 8/10/2013

40 BIRO HUKUM RAPERDA RPJMD DOC and XLS Bahasa Sulawesi Tengah 9/10/2013 2011-2016 SULTENG - SKPD

41 RD GRK Sulteng 2012-2020 PDF and Word Bahasa Sulawesi Tengah 8/10/2013

A-5

No Content Data Format Language Province Data Received

42 Pedoman Penyusunan RAD GRK PDF Bahasa Sulawesi Tengah 8/10/2013

43 Pedoman Pelaksanaan RAP GRK PDF Bahasa Sulawesi Tengah 8/10/2013

44 Raperda RTRWP Sulteng DOC Bahasa Sulawesi Tengah 8/10/2013

45 Data Perhubungan 2011 DOC Bahasa Sulawesi Tengah 8/10/2013

46 Penyusunan Rencana Zonasi DOC Bahasa Sulawesi Tengah 8/10/2013 Pengelolaan Ekosistem Mangrove (Buku I)

47 Penyusunan Rencana Zonasi DOC Bahasa Sulawesi Tengah 8/10/2013 Pengelolaan Ekosistem Mangrove (Buku II)

48 Penyusunan Rencana Zonasi DOC Bahasa Sulawesi Tengah 8/10/2013 Pengelolaan Ekosistem Mangrove (Buku III)

49 Ringkasan Eksekutif Zonasi Mangrove DOC Bahasa Sulawesi Tengah 8/10/2013

50 SLHD Sulteng XLS and DOC Bahasa Sulawesi Tengah 8/10/2013

51 Buku Data & Analisa RTRW SULUT DOC Bahasa Sulawesi Tengah 8/10/2013 2009-2029

52 Buku Rencana RTRW SULUT DOC Bahasa Sulawesi Tengah 8/10/2013

53 RPJPD Sulteng 2005-2025 PDF Bahasa Sulawesi Tengah 7/11/2013

54 PERDA RTRWP Sulut DOC, PPT, PDF Bahasa Sulawesi Utara 8/10/2013

55 Lampiran Peta RTRWP DOC and JPEG Bahasa Sulawesi Utara 8/10/2013

56 KLHS RTRW Sulut DOC & PPT Bahasa Sulawesi Utara 8/10/2013

57 RPJPD Prov Sulut 2005-2025 DOC Bahasa Sulawesi Utara 8/10/2013

58 RPJMD Prov Sulut 2010-2015 DOC Bahasa Sulawesi Utara 8/10/2013

59 Sulut Dalam Angka 2011-2012 PDF & PPT Bahasa Sulawesi Utara 8/10/2013

60 Profil Daerah Sulut 2012 DOC Bahasa Sulawesi Utara 8/10/2013

61 Kawasan Strategis dan Cepat Tumbuh DOC & PDF Bahasa Sulawesi Utara 8/10/2013

62 Kajian Sinkronisasi Program KAPET DOC & PPT Bahasa Sulawesi Utara 8/10/2013 Manado Bitung

63 Buku Studi Kelayakan KEK (Aspek DOC, JPEG, Bahasa Sulawesi Utara 8/10/2013 Ekonomi Finansial dan Kelembagaan) PSD, XLS 2012

64 RDTR dan PZ KEK Bitung Doc, JPEG, Bahasa Sulawesi Utara 8/10/2013 SWF

A-6 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Baseline Data Sources

No Content Data Format Language Province Data Received

65 Buku RENSTRA Pengembangan KEK Doc, PDF, JPEG Bahasa Sulawesi Utara 8/10/2013 Bitung 2012

66 SLHD Sulut 2012 DOC & PDF Bahasa Sulawesi Utara 8/10/2013

67 Daftar IUP Pertambangan di Sultra XLS Bahasa Sulawesi Tenggara 8/10/2013

68 Gambar Tambang MP3EI JPEG Foto Bahasa Sulawesi Tenggara 8/10/2013

69 Potensi , Kendala, dan Kondisi SDA LH PDF Bahasa Sulawesi Tenggara 8/10/2013 Koridor Sulawesi dalam Implementasi MP3EI

70 Contoh Kapet Pare-pare PDF (Jpeg) Bahasa Sulawesi Tenggara 8/10/2013

71 Kondisi Lingkungna Hidup Sultra, DOC Bahasa Sulawesi Tenggara 8/10/2013 Cover, dan pendahuluan Kajian LH

72 ECA Application JPEG, SHP, Bahasa Sulawesi 8/10/2013 DOC, PDF

73 Data Kehutanan dan Kode Landsystem XLS dan SHP Bahasa Sulawesi 8/10/2013 (GIS Data)

74 MIH Sulawesi SHP (GIS Data) Bahasa Sulawesi 8/10/2013

75 Status Kawasan Hutan Sulawesi JPEG, SHP, Bahasa Sulawesi 8/10/2013 DOC, PDF

76 Sulawesi Marine, Mangrove, SHP (GIS Data) Bahasa Sulawesi 8/10/2013 Penduduk, Tanah, HPH

77 Draft MP3EI-Map-Lampiran DOC Bahasa Sulawesi 8/10/2013

78 System Kerusakan SHP (GIS Data) Bahasa Sulawesi 8/10/2013

79 Master data SHP Sulawesi SHP (GIS Data) Bahasa Sulawesi 8/10/2013

80 Peta Longlat SHP (GIS Data), Bahasa Sulawesi 8/10/2013 JPEG

81 Kawasan Konservasi XLS Bahasa Sulawesi 8/10/2013

82 Kerusakan tiap Administrasi XLS Bahasa Sulawesi 8/10/2013

83 Taman Nasional dan Taman Nasional SHP (GIS Data) Bahasa Sulawesi 8/10/2013 Laut

84 SLHE Mamminasata Buku Bahasa Sulawesi 8/10/2013

85 SLHE Sulawesi 2011 Buku Bahasa Sulawesi 8/10/2013

86 Data Spasial PPE SUMA SHP (GIS Data) Bahasa Sulawesi 8/10/2013

87 SLHE Sulawesi 2011 PDF Bahasa Sulawesi 12/11/2013

A-7

No Content Data Format Language Province Data Received

88 Laporan DAS Tiap Koridor (2008) SHP (GIS Data), Bahasa Indonesia 8/10/2013 XLS

89 Perpres No.61 Tahun 2011 RAN GRK PDF Bahasa Nasional 8/10/2013

90 Peraturan Presiden No.71 Tahun 201, PDF Bahasa Nasional 8/10/2013 Penyelenggaraan Inventarisasi GRK NAS

91 Buku Data SLHD 2012 Sulawesi PDF Bahasa Sulawesi Selatan 26/11/2013 Selatan

A-8 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

APPENDIX B – List of MP3EI Economic Activities and Connectivity Projects in Sulawesi EC

This page is intentionally left blank

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

MP3EI Planning Information in Sulawesi Economic Corridor

B MP3EI Planning Information in Sulawesi Economic Corridor

B.1 List of Economic Development Projects

Investment Starting End No Projects Name Value (IDR Developers KPI Period Period Billion)

Food Agriculture

Pembangunan Industri Benih Tanaman 1 3,5 Swasta 2011 2014 Makassar Pangan di Kab. Sidrap

Kawalan manajemen/budidaya usaha 2 265,0 Pemerintah 2013 Palipi tani, Sulawesi Barat

Pengembangan pembibitan/penangkaran benih padi, 3 15,0 Pemerintah 2013 Palipi jagung, kedelai dan ubi kayu, Sulawesi

Barat

Campuran Pengembangan Industri Benih & 4 4,0 (BUMD, 2007 2010 Pohuwato Pengolahan Jagung Swasta)

Cocoa

1 Pabrik pengolahan Kakao 273,0 Swasta 2010 2013 Makassar

Campuran Mamuju- 2 Pabrik pengolahan kakao 500,0 (Pemerintah, 2012 2017 Mamasa Swasta)

Campuran Pengolahan kakao menjadi butter Mamuju- 3 500,0 (Pemerintah, 2013 2017 maupun powder Mamasa Swasta)

Fisheries

Pembangunan rumah kemasan (beserta 1 1,3 Pemerintah 2011 2012 Makassar mesin kemasan)

2 Pengembangan PP Untia 364,0 Pemerintah 2005 2015 Makassar

Pengembangan budidaya udang serta 3 61,0 Swasta 2011 2013 Makassar pembangunan pengolahan udang

4 Pengembangan budidaya rumput laut 108,0 Swasta 2011 Makassar

5 Pengembangan budidaya udang 93,0 Swasta 2011 2013 Maros

6 Pengembangan budidaya rumput laut 1,0 Swasta 2011 Maros

7 Pengembangan budidaya udang 44,0 Swasta 2011 2013 Maros

8 Pengembangan budidaya rumput laut 53,2 Swasta 2011 Maros

Pengembangan Industri Pembekuan Ikan 9 21,0 Swasta 2011 2012 Wajo dan biota perairan lainnya di Bantaeng

Pengembangan pabrik es dan cold 10 8,0 Pemerintah 2011 2015 Wajo storage

11 PPI Bulukumba 22,0 Pemerintah 2013 Wajo

12 PPI Lappa Sinjai 13,0 Pemerintah 2011 Wajo

B-3

Investment Starting End No Projects Name Value (IDR Developers KPI Period Period Billion)

13 Pengembangan budidaya udang 2,0 Swasta 2011 2013 Wajo

14 Pengembangan budidaya rumput laut 21,7 Swasta 2011 Wajo

15 Pengembangan budidaya udang 67,0 Swasta 2011 2013 Wajo

16 Pengembangan budidaya rumput laut 28,6 Swasta 2011 Wajo

Pengembangan sentra pengolahan ikan Palopo 17 10,0 Pemerintah 2011 2015 asap cakalang di Kab.Luwu (Luwu)

Pengembangan industri rumput laut ATC Palopo 18 10,0 Pemerintah 2011 2015 dan SRC di Kab.Luwu (Luwu)

Pengembangan Depo Pemasaran Palopo 19 2,0 Pemerintah 2011 2015 Rumput Laut (Luwu)

Palopo 20 Pengembangan budidaya udang 75,0 Swasta 2011 2013 (Luwu)

Palopo 21 Pengembangan budidaya rumput laut 49,0 Swasta 2011 (Luwu)

Palopo 22 Pengembangan budidaya udang 4,5 Swasta 2011 2013 (Luwu)

Palopo 23 Pengembangan budidaya rumput laut 5,0 Swasta 2011 (Luwu)

Pengembangan pasar ikan tradisional Pare- 24 1,5 Pemerintah 2011 (rehabilitasi pasar) Pare

Campuran Pare- 25 Pembangunan Pengolahan Udang 78,0 (Pemerintah, 2012 2014 Pare Swasta)

Pare- 26 Pengembangan budidaya udang 34,0 Swasta 2011 2013 Pare

Pare- 27 Pengembangan budidaya rumput laut 27,0 Swasta 2011 Pare

28 Pengembangan PPN Palipi 614,0 Pemerintah 2011 Palipi

29 PPI Manggolo 25,2 Pemerintah 2007 2013 Kendari

Pengembangan PPI dan industri 30 100,0 Pemerintah 2010 Togean pengolahan ikan

31 Pengembangan unit pengolahan ikan 7,7 Swasta 2004 2006 Palu

Campuran 32 Pengembangan industri keraginan 150,0 (Pemerintah, 2009 2014 Morowali Swasta)

Pengembangan industri pengolahan ikan Campuran (Pembangunan PPI Tandaoleo, 33 150,0 (Pemerintah, 2012 2014 Morowali Pembuatan Fish Home, Hatchery Ikan Swasta) Demersal, Industri pengolahan/pabrikasi)

Campuran Pengembangan Kawasan Budidaya 34 15,0 (Pemerintah, 2012 2013 Morowali Rumput Laut dan Industri Karaginan Swasta)

Campuran Parigi 35 Pengembangan industri keraginan 100,0 (Pemerintah, 2009 2014 Moutong Swasta)

B-4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

MP3EI Planning Information in Sulawesi Economic Corridor

Investment Starting End No Projects Name Value (IDR Developers KPI Period Period Billion)

Campuran Tojo Una- 36 Pengembangan industri keraginan 100,0 (Pemerintah, 2009 1014 Una Swasta)

Campuran 37 Pengembangan industri keraginan 100,0 (Pemerintah, 2012 2014 Banggai Swasta)

Pengembangan industri pengolahan ikan Campuran (Revitalisasi PPI Pagimana, Pembuatan 38 150,0 (Pemerintah, 2011 2014 Banggai Fish Home, Hatchery Ikan Demersal, Swasta) Industri pengolahan/pabrikasi)

Campuran 39 Pengembangan industri keragian 100,0 (Pemerintah, 2012 2013 Banggai Swasta)

Campuran Pengembangan industri Budidaya dan 40 30,0 (Pemerintah, 2013 2014 Sigi Pengelolaan ikan air tawar Swasta)

Pengembangan PPI Donggala dan 41 100,0 Pemerintah 2005 Donggala Industri Pengolahan ikan

Campuran Pengembangan industri Budidaya dan 42 30,0 (Pemerintah, 2013 2014 Poso Pengolahan Sidat Swasta)

Pengembangan Tuna dan pengolahan Campuran industri tuna Rakyat di Kab. Buol (bagian 43 30,0 (Pemerintah, 2012 2013 Buol dari pengembangan Outer Ring Fishing Swasta) Port Kab. Toli- toli)

Pengembangan Penangkapan Ikan Terpadu (dengan industri pengolahan 44 263,0 Swasta 2012 2014 Bitung dan pengawetan ikan serta biota perairan lainnya)

Pembangunan Industri pengolahan dan 45 200,0 Swasta 2011 2012 Bitung pengawetan ikan laut

Pengembangan Budidaya Rumput Laut Campuran Minahasa 46 dan Industri Pengolahan Rumput Laut 100,0 (Pemerintah, 2012 2014 Utara (ATC) Swasta)

47 PPI Amurang, Sulawesi Utara 20,0 Pemerintah 2007 Manado

48 PPI Bahoi (Sitaro), Sulawesi Utara 23,0 Pemerintah 2012 Manado

Nickel

Perluasan Pertambangan dan Pengolahan Nikel, Kab. Luwu Timur, Palopo 1 15.000,0 Swasta 2011 2016 Sulawesi Selatan (diluar pembangunan (Luwu) PLTA Karebe)

Modernisasi dan Optimasi Pabrik 2 Feronikel Pomalaa- (Pembangunan Coal 4.500,0 BUMN 2011 2013 Kolaka Fired Power Plant)

Pembangunan Pabrik Nikel Pig Iron Konawe 3 7.578,0 BUMN 2011 2014 Mandiodo Utara

Pertambangan dan Pemurnian Nikel 4 (termasuk Pembangunan Fasilitas 5.000,0 Swasta 2011 2016 Morowali Preparasi Bijih Nikel)

5 Pertambangan Nikel Laterit (Eksplorasi 25.000,0 Swasta 2011 2015 Morowali

B-5

Investment Starting End No Projects Name Value (IDR Developers KPI Period Period Billion) Pertambangan dan Pengolahan Nikel)

Oil and Gas

1 Pembangunan Terminal LPG 6.748,2 Swasta 2009 2014 Makassar

Pengembangan Industri Pemurnian dan 2 5.580,0 Swasta 2011 Wajo Pengolahan Gas Bumi

Pembangunan dan Pengoperasian Kilang 3 25.000,0 Swasta 2011 2015 Banggai LNG Donggi-Senoro

Campuran Eksploitasi Migas Bidang Hulu di Proyek 4 2.600,0 (BUMN, 2011 2015 Banggai Gas Donggi-Senoro Swasta)

Cement

Pare- 1 Pengembangan industri semen 4.138,8 BUMN 2011 2013 Pare

Other sector – Gold

Pengolahan dan pemurnian bijih emas, 1 2.375,0 Swasta 2011 2013 Gorontalo Gorontalo

B.2 List of Main Planned Infrastructure Projects

Main Planned No Developers Description Infrastructure 1 Road: Palu-Parigi Ministry of Public Works Length 36.45 km BPJT - Ministry of Public 2 Toll Road: Manado-Bitung Length 39 km Works Powerplant Lahendong Unit 3 PT PLN & PGE Capacity 3x20 MW IV,V,VI PT Pelindo IV & Ministry of 4 Bitung Port International Hub Airport Transportation North Sulawesi Steam 5 PT PLN Capacity 2x 50 MW Powerplant 2 - Amurang 6 Tampa Padang Airport Ministry of Transportation Airport Expansion 7 Poso Hydro Powerplant PT Poso Energy Capacity 390 MW South Sulawesi Steam 8 PT PLN Capacity 2x50 MW Powerplant - Barru Southeast Sulawesi Steam 9 PT PLN Capacity 1x10 MW Powerplant - Kendari Development and Advancement Water Supply System - 10 Ministry of Public Works of Capacity from 1000 l/s to Makassar City 2000 l/s PT Pelindo IV & Ministry of 11 Makassar Port Port Expansion Transportation Jeneponto Steam 12 PT Bosowa Energy Capacity 2x100 MW Powerplant

B-6 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

MP3EI Planning Information in Sulawesi Economic Corridor

B.3 List of KPI and its allocation for economic activities

Zones of Investment No Designation Province Focus

Food Agriculture, Cocoa, Fisheries, Oil & 1 KPI Makassar Gas, Textile, Food-Beverage, Other South Sulawesi sector

Food Agriculture, Fisheries, Copper, 2 KPI Maros South Sulawesi Other sector

3 KPI Wajo Food Agriculture, Fisheries, Oil & Gas South Sulawesi

4 KPI Palopo (Luwu) Food Agriculture, Fisheries, Oil & Gas South Sulawesi

5 KPI Pare-Pare Fisheries, Food-Beverage, Other sector South Sulawesi

6 KPI Mamuju-Mamasa Cocoa, Palm Oil, Other sector West Sulawesi

7 KPI Palipi Food Agriculture, Fisheries, Other sector West Sulawesi

8 Kendari Fisheries Southeast Sulawesi

9 Kolaka Fisheries, Nickel, Iron-Steel Southeast Sulawesi

Food Agriculture, Nickel, Iron-Steel, 10 Konawe Utara Southeast Sulawesi Tourism, Other sector

11 Palu Food Agriculture, Fisheries, Other sector Central Sulawesi

Fisheries, Nickel, Palm Oil, Rubber, 12 Morowali Central Sulawesi Other sector

13 Parigi Moutong Fisheries Central Sulawesi

14 Banggai Fisheries, Oil & Gas Central Sulawesi

15 Donggala Fisheries Central Sulawesi

16 Poso Fisheries Central Sulawesi

17 Bitung Fisheries North Sulawesi

Food agriculture, Fisheries, Tourism, 18 Manado North Sulawesi Other sector

19 Minahasa Utara Fisheries, Food-Beverage, Other sector North Sulawesi

20 Gorontalo Food Agriculture, Fisheries, Other sector Gorontalo

21 Gowa Food agriculture, Timber South Sulawesi

22 Tana Toraja * South Sulawesi

23 Buton * Southeast Sulawesi

24 Wakatobi * Southeast Sulawesi

25 Toli-toli Fisheries, Other sector Central Sulawesi

26 Togean * Central Sulawesi

27 Sigi Fisheries Central Sulawesi

28 Buol Fisheries, Other sector Central Sulawesi

29 Boalemo Fisheries Gorontalo

B-7

Zones of Investment No Designation Province Focus

30 Gorontalo Utara Fisheries Gorontalo

31 Pohuwato Food agriculture Gorontalo

B-8 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

APPENDIX C – Scoping Matrix

This page is intentionally left blank

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

C Scoping Matrix C.1 Fisheries (Aquaculture)

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Potential Planning

Conflicts

WideScale

Cumulative Climate Change

Environmental Quality

The MP3EI envisages policy towards expansion of aquaculture production (approx. four-times increase between 2009-2015), while maintaining steady level of fish catching. Correspondingly, the need for land conversion (including mangrove forests) associated with Increase of pollution from (aquaculture) fish ponds creation of new fish/shrimp ponds is indicated in (nutrients, and others) can be expected as a result (-) (-) 0 0 the MP3EI. This likely large-scale development Yes of aquaculture expansion; however it is difficult to however has not been so far reflected on the Water predict specific cumulative impacts. project level (i.e. the MP3EI list of specific projects does not include specific projects for aquaculture ponds expansion). The pollution can have cumulative effects, considering the poor water quality of Jeneberang river entering the Makassar strait.

The use of antibiotics and organic and chemical Shrimp and seaweed-related MP3EI projects 0 (-) 0 0 fertilizers in shrimp ponds will cause pollution. are located in Makassar strait There is a potential risk of pollution from ponds to

C-1

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Potential Planning

Conflicts

WideScale

Cumulative Climate Change

be flushed into the surrounding ecosystem by tides. The shrimp ponds also sometimes increase the salinity of surrounding farmland and alter the water chemistry of aquatic ecosystems, but as there is no known information regarding the scale of aquaculture production, this will need to be further verified.

Expansion of aquaculture can create extra The issue can be talked at project level, where pressure on available freshwater sources ? ? ? (-) further research on actual local situation is Yes (especially during dry season) necessary.

Air & Climate None 0 0 0 0 No

Potential for soil degradation from shrimp ponds (e.g. salinization) exists. ? ? ? ? Analysis on existing soil degradation Yes Land & Soil

Land conversion at the expense of productive Further analysis of land use change trends is ? ? ? ? Yes agriculture land (e.g. rice) can occur necessary

Ecosystems

MP3EI related projects development combined Forests & Mangrove loss can be largely attributed to the (-) (-) ? (-) with existing pressures can directly affect the Others aquaculture shrimp ponds development remaining mangroves in the area of Makassar strait (especially at the coast of Maros regency),

C-2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Potential Planning

Conflicts

WideScale

Cumulative Climate Change

as well as at Wajo regency , and around of Palopo city (east coast of South Sulawesi).

Development of new aquaculture ponds in coastal areas could generate erosion and degradation. The Existing mangroves areas in the EC MP3EI provides only limited info regarding the ? (-) ? - scale and location of these developments. See above.

Coastal Areas MP3EI does not specify projects supporting wide scale mechanized fisheries. Considering the Locations are unknown. There is need for existing problems of overfishing (admitted by verification for what additional mechanized MP3EI document) both in the coastal areas and in (-) (-) ? No fishing activities were occurred and it should be Yes some deep sea areas there is substantial risk of mentioned that there may be illegal fishing may further wide scale degradation of coastal fish result from this policy. stocks, coral reef system and seagrass.

Considering the risks of introduction of alien E.g. potential sensitive endemic species in species from aquaculture and secondary effects of Matano and Towuti lakes system destroyed habitat and (to less extent) water (-) (-) ? ? Yes pollution, there is a clear cumulative and potential Further information on aquaculture practices (shrimp species/hybrids introduction) is Biodiversity wide-scale strategic impacts to diversity of local fish stocks species in the EC. needed.

Loss of important spawning and nursery grounds Further analysis on the existing mangroves (-) ? (-) Yes affects local fisheries resulting in reduced yields for quality due to shrimp farming/fish activities local fishermen, as many coral reef species spend

C-3

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Potential Planning

Conflicts

WideScale

Cumulative Climate Change

a portion of their lifecycle in mangrove forests

Socio- economic Aspects

Shrimp and seaweed-related MP3EI projects Potential secondary impact of industrial pollution on are located in Makassar strait – area with quality of shrimp/fish/seaweed products substantial industrial base. Human Health 0 (-)? 0 0 Yes (contamination from industrial pollution, antibiotics Potential for conflicts between aquaculture and residua from aquaculture treatment, and the like) industry exist in most locations adjacent to urbanized areas

Any overfishing/ mechanized industrial fishing activities will have (wide-scale and cumulative) The MP3EI does not envisage any major negative impacts on employment and livelihood of projects aiming at increase of fishing intensity local artisanalal fishermen/ fisheries community areas. Vice versa, shrimp farming may generate (+)/(-) (-) ? ? Yes benefits (increase wealth) of the local community There is opportunity in sustainable aquaculture Livelihood but compared to the loss from overfishing activities, to diffuse the local conflicts in natural fisheries further investigation on the scale of this aquaculture resources. production in Sulawesi is required.

There is potential loss of cultural resources (more traditional fishing technique) due to the introduction ? ? 0 0 of new technology of fishing and aquaculture.

C-4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

C.2 Mining (i.e. Nickel Mining; Oil & Gas Exploitation)

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

Environmental Quality

• Massive territorial expansion of nickel mining areas in East Luwu regency; Pomalaa district and Maniang island (Kolaka regency) – existing • MP3EI specific projects are located in Morowali regency and Banggai , but existing nickel concessions are in North Kolaka, North Konawe, East Luwu and Morowali Possible physical disturbance to alter surface • Potential issue of conflict between and underground water flows, and destroy Water (-) (-) 0 (-) existing concession areas and water Yes water resources or water regimes associated quality in lake system Matano, Towuti with large-scale open-pit mining (nickel). and Mahalona. • Coastal waters quality concerns (Morowali regency, North Kolaka regency) • River systems: Larongsangi river, Bahadopi river, Mupai, and Pankeru river system entering Bone bay. • Further analysis regarding the estimation of potential future impacts from overall

C-5

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

mining development in Sulawesi is required. • Further study on the actual impacts

Location see above Pollution and contamination of water from Existing gold concessions are located in tailings leakages and waste water discharge North Sulawesi, Gorontalo, Central Sulawesi from mining sites (nickel and gold). Existing (-) (-) ? mining activities already contribute heavily to Only one MP3EI gold processing related existing water pollution. project – located in Gorontalo (no location specified)

Provisions for safety and sound environmental management of oil & gas processing Possible concerns regarding waste water operations needs to be ensured at the project discharge from Oil & Gas activities (e.g. level. water treatment from maintenance of the 0 0 0 Only only one MP3EI related project (LNG infrastructure), but can be dealt in a project plant) located in Central Sulawesi (Banggai level. regency).

Oil & Gas accidental spill risks but considering the nature of the impacts is Water quality already deteriorated in many project related. However, taken together with locations, the accidental leakage can be 0 ? o 0 cumulative impacts with industrial further contributing factor to water resources developments in the future, it will have likely degradation. risks.

C-6 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

Marine/coastal water pollution (addressed in

coastal ecosystems)

Considering the scale, and cumulative effects Air pollution resulting from mining and raw (combination with heavy industry and energy material handling operations – particularly generation), the issue is of local importance dust particles. Potential clustering with other (-) ? and can be handled at project planning level existing mining activities, the produced emissions can cause impacts to regional air Location is the existing nickel concessions and quality. possibly (urban) settlement areas close to mining activities.

Oil&Gas contribution for air quality needs to be Oil & Gas related air polluting emissions 0 ? 0 further investigated. (E.g. Banggai regency, NOx, SO2 and others (?) Air & Climate Sidenrengrapang, and Makassar area)

Sector represents almost 50% of RGDP, indicated MP3EI project thus represent only small contribution to the total burden. However Fugitive emissions (methane) from oil and MP3EI aims to create stimulating environment gas drilling are significant contributor to total for further investment, in the long term it is GHG emissions, in combination with already (-) (-) potentially significant negative impact. On the existing emissions of the sector in the region, policy level, we believe that this should receive but its management is more project-related. particular attention though on the project level, there is no known information regarding the scale of the projects.

Large scale land up-take will result from Land & Soil (-) (-) (-) Land-use conflict of mining concessions and Yes expansion of mining operations (including

C-7

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

tailings deposition). Palm oil developments in Luwu Timur regency.

The ex-post management of mining sites (reclamation) is not consistently applied in

regular basis

Ecosystems

Deforestation resulting from the surface In terms of forest area – largest potential mining expansion. conflicts occur with Gold concessions with Central Sulawesi, North Sulawesi Although there is no MP3EI mining projects (Bolaangmongondouwu, Bitung, Minahasa), in the forests area, considering the existing Forest & others (-) (-) (-) (-) throughout of Gorontalo, Central Sulawesi mining concession areas and palm oil (e.g. Parigimouton). concession areas, there will be large-scale deforestation to continue under the MP3EI Nickel concession areas in in North Kolaka, policy. North Konawe, East Luwu and Morowali

High risk of secondary impact from major Territorial expansion of nickel mining areas in offshore drilling and mining project - East Luwu regency; Pomalaa district and destruction of habitats, disturbance of Maniang island (Kolaka regency) etc. see ecosystems (mangroves, coral), accidental above. spilling, discharge of wastewater. Coastal Areas (-) (-) (-) Oil&Gas concession with potential conflict with Secondary impacts from water pollution; acid coral reefs - Banggai and Morowali, East water runoff change the pH of the coastal coast of South Sulawesi (Luwu, Wajo, Bone), water and Makassar strait area - Polewalimandar, Pollution associated with gold mining – Majene , and South-West off South Sulawesi sediments + mercury (small islands)

C-8 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

Oil & Gas activities induce developments of adjacent areas – settlements - urbanization, servicing infrastructure developments will further exacerbate the negative impacts on coastal ecosystems

Potential effects of tailings and coal disposal Extension of already existing extensive mining (intentional or accidental) directly to sea base water/coastal areas

Already occurring in Tojo-una una regency. Coastal erosion from mining operations Potential risk of similar development in projects under MP3EI

Conflict of mining concessions with conservation areas Gold in North Sulawesi (Bitung, Minahasa, Minahasa Selatan, Bolaangmongondow Direct disturbance and loss of biotopes from selatan, Bone Bolango , Gorontalo (-) (-) (-) the mining areas expansion (Pohuwato), Central Sulawesi (Toli Toli, Parigi Biodiversity Moutong, Palu city),

Oil and gas concessions in Morowali, Banggai, Nickel mining concessions with conservation areas in East Luwu, South Sulawesi

Fragmentation of biotopes of sensitive Bird areas South and East coast of NOrht

C-9

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

species – Bird areas, endemic species Sulawesi (gold consessions), Banggai, Dungala and Morowali of Central Sulawesi

Endemic species in Lake systems in East Luwu Endemic Makak nigra (North Sulawesi – Bitung)

Secondary impacts from pollution and Further analysis regarding the estimated risks contamination of air, water, soil on of the water pollution in the mining concession ecosystems including endangered species areas is required.

Oil&Gas extraction has significant potential for exacerbating conditions of already degraded coastal ecoystems, localized impact on marine ecosystems Localized risks of accidental spill but to be addressed in project-level.

Socio- economic Aspects

Increased employment opportunities, will increase migrations and thereby increase the Migrant population will constitute extra burden (-) (-) (-) likelihood of the transmission of disease to on existing underdeveloped health services Human Health the local residents.

Health impacts from environmental Project related,

C-10 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

degradation related to mining (water Cumulative effects with heavy industries pollution, tailing ponds etc.) associated with nickel production and gold (especially illegal mercury use)

Employment opportunities can contribute to Poverty ? (+)? the alleviation of poverty

Former traditional livelihood will be impacted by the influx of alternative culture and values brought by the migrant mining workers. Locations may be established through further Risk of conflict between mining activities (-) (-) (-) research, if necessary related to existing concessions and

subsistence farming and other economic activities employing local population resulting in loss of likelihood opportunities.

Livelihood Potential conflicts over customary land There is clear risk of land-use disputes and identified (GIS overlapping) for East Luwu (-) conflicts over customary land (nickel), North Luwu (gold) and Parigimountong (gold) in Central Sulawesi.

Income for public budgets – better infrastructure in the area can increase well- ? ? being of population

Improved livelihood opportunities for ? (+) population capable of participating in mining

C-11

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

and associated developments

Illegal mining can be an important source of livelihood in some communities. Expansion Not related to the MP3EI projects ? (-) of industrial mining can strip them of livelihood

Concerns regarding under-age workers Need for further analysis

C-12 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

C.3 Heavy Industry (Nickel, Oil & Gas, Gold – Processing & Smelting; Cement Industry)

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate Related

Change

Potential Planning

Conflicts

WideScale Cumulative

Environmental Quality

Potential problem of capacity of wastewater High production of wastewater, often treatment facilities. The integrated system for containing toxic polluting compounds handling the water in technological process (including final treatment) should be required Impacts of acid leaching to water sources at the project level (EIA, project design Cumulative impacts with other activities approval) (agriculture and mining in concession areas). (-) (-) ? For locations – see mining Additional heavy industries and the related water discharges can lead to cumulative Cumulative effects with existing industrial non-compliances with water quality zones can be expected in Makassar city and Water guidelines standard. Maros regencies of South Sulawesi Specific locations of MP3EI related projects are yet to be established

Regional wide risks from the breach of tailing Nickel mining and processing in North Kolaka, ponds particularly from nickel and gold (-) (-) North Konawe, East Luwu and Morowali processing to the water quality Gold processing in Gorontalo

High consumption of technological water locations see above (-) Yes creates pressure on water resources Potential problem of capacity of water

C-13

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate Related

Change

Potential Planning

Conflicts

WideScale Cumulative

resources. The balance of water resources (availability of water for other purposes and human use) shall be ensured through the planning at the regional level (before the project level decision making is concluded) for further clarification – projections of water balance is required

High emissions of dangerous pollutants Largely depending on technology and level of relevant to both local and regional context: (-) (-) (-) environmental management of the facilities SO2, NOx, …

Risk of cumulative air quality impact to the local residents in Makassar from combined activities from heavy industries, transport Makassar city, to less extent also in Maros (-) (-) Air & Climate and future power generations and existing regency, and minor risk in Banggai regency power generations and likely future traffic congestion.

High energy-intensity triggering the emissions of GHG Emissions generated by power supply are (-) (-) (-) Potential for climate change impact from considered in Energy sector industrial development.

Risk of soil contamination , both in situ and locations see above Land & Soil through toxic (atmospheric) deposition (-) Non-ferrous metals industry is associated with Uncontrolled industrial landfills, in principle highly toxic emissions throughout the whole

C-14 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate Related

Change

Potential Planning

Conflicts

WideScale Cumulative

can lead to potential wide-scale impacts to production process groundwater and soils quality but it can be managed in a project level.

Regional wide risks from the breach of tailing ponds particularly from nickel processing. Impacts to the land used for the tailing ponds (-) (-) Mandiodo (Konawe Utara), Pomalaa (Kolaka) will be unproductive/unusable after (being left) the processing activities.

Possible localized pollution impact – Oil&Gas Considered existing scale of operations, the -spilling from transport and processing additional risks associated with indicated operations. MP3EI projects are not of strategic importance.

Ecosystems

Impacts on forests mostly related to supporting infrastructure (addressed in Connectivity) No major impact on deforestation expected Forest & others 0 0 0 0 (impacts associated with mining, not Not major impacts expected from Gas&Oil processing) sector, possible risks fragmentation from pipelines

Impact on coastal areas through integrated Industrial developments in Makassar area & industrial development around ports and Maros regency can lead to secondary impact Coastal Areas coastal areas (transport of raw materials, (-) 0 on coral habitats. production, disposal of wastes, etc.) Primary impact from the industrial projects to the Potentially also in Bitung area (with light coastal zone and secondary impacts to industries and port development and operation

C-15

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate Related

Change

Potential Planning

Conflicts

WideScale Cumulative

water, leading to potential impacts to the will be major issues) coastal ecosystem (mangroves, to some Cumulative also with Manado development extent seagrass and the least to coral) area

Possible risks of contamination of the Lake ecosystems with endemic species nearby ecosystems (including protected species) the nickel mining concessions (Lake Towuti, through emissions (air, soil, water) – Matano and Mahalona) (fish and mammals) secondary impacts. Developments take place mostly in already Biodiversity Cumulative secondary impacts on water 0 (-) 0 Yes degraded areas, nevertheless additional quality with mining could cause wide -scale burden constitute a critical situation for certain (strategic)impacts sensitive species Secondary and tertiary impacts on coastal Makassar strait – coastal sensitive species areas

Socio- economic Aspects

Contamination of environmental components Areas are mostly already affected by existing can be important health factor for (existing economic activities –e.g. Makassar and future) population in the vicinity or Risk of cumulative impact with existing air and downstream from industrial sites water quality issues and urban growth – Human Health Existing population and future incoming (-) chronic issues migration may require additional health Considering the location of of heavy industries services/facilities out of major cities – the risk is relatively minor. Presence of migrants workers can increase Spatial distribution – in relation of urban areas the spread transmissible disseases (i.e. HIV) needs to be verified.

C-16 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate Related

Change

Potential Planning

Conflicts

WideScale Cumulative

Employment opportunities can contribute to Poverty (+) the alleviation of poverty

Increase of employment opportunities for

certain professions

Possible loss of livelihood for certain Further analysis on types of existing livelihood communities (e.g. agriculture, turism) in the on regional level needed Livelihood vicinity of industrial sites

Education capacity should be developed in Increased migration of workforce, both accordance with the potential labor-market (+/-)? (-)? skilled and non-skilled situation. The issue should be addressed at the strategic level (provincial?)

C-17

C.4 Light Industry (Food & Agriculture [Cocoa], Fish/Shrimp – Processing)

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

Environmental Quality

Production of wastewater, often containing Potential problem of capacity of wastewater nutrients polluting compounds treatment facilities. The integrated system for Impacts of nutrients leaching to water handling the water in technological process sources (including final treatment) should be required at the project level (EIA, project design Definite cumulative impacts in association (-)? ? approval) with other activities and mining concessions. Additional light industries and the related Further analysis is required if it accumulates water discharges can lead to cumulative with other activities/projects non-compliances with water quality Locations need to be further established guidelines standard Water Potential problem of capacity of water resources. The balance of water resources (availability of water for other purposes and human use) shall be ensured through the Potential risks from industry water planning at the regional level (before the consumption to create pressure on water (-)? ? project level decision making is concluded) resources, can be managed in project level For further clarification – projections of water balance is required

C-18 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

Largely depending on technology and level of Air & Climate None 0 environmental management of the facilities

Soil uptake as a result of territorial expansion ? (-) of the industrial facilities

Risk of soil contamination , both in situ and through nutrients deposition

Land & Soil Uncontrolled industrial landfills, in principle (-) Further analysis needed Yes can lead to potential wide-scale impacts to groundwater and soils quality but it can be managed in a project level.

Possible risk of contamination through (-) unsound waste management

Ecosystems

Impacts on forests mostly related to Forest & others supporting infrastructure (addressed in 0 0 0 0 Connectivity)

Impact on coastal areas through integrated industrial development around ports and (-) 0 coastal areas (transport of raw materials, Coastal Areas production, disposal of wastes, etc.)

Primary impact from the industrial projects to (-) 0 the coastal zone (habitat destruction) and

C-19

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

secondary impacts to water, leading to potential impacts to the coastal ecosystem (mangroves, to some extent seagrass and the least to coral) Cumulative impacts with other developments (mining, heavy industries, etc) may contribute to the coastal degradation

Possible risks of contamination of the Developments take place mostly in already Yes (mainly) coastal ecosystems (including degraded areas, nevertheless additional protected species) through emissions (air, burden constitute a critical situation for certain Biodiversity soil, water). (-) 0 sensitive species

Secondary and tertiary impacts on the same Further analysis on the exact location of the Yes locations with coastal areas projects

Socio- economic Aspects

Secondary impacts from the industrial developments in existing areas with already Human Health (-) poor air quality and water quality, but can be managed in a project level.

Contamination of environmental components can be important health factor for (existing and future) population in the vicinity or downstream from industrial sites (-) Existing population and future populations may add the burdens

C-20 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

Climate

Change

Potential Planning

Conflicts

WideScale Cumulative

Poverty Not strategic

Livelihood Not strategic

C-21

C.5 Agro-Industry (Agriculture Farming, i.e. Rice, Cassava, Cocoa)

The policy in Sulawesi EC indicates objectives to increase /intensify the production of agro-forestry/agriculture sector, but this is not reflected in proposal of specific projects. Further analysis is required to predict potential scale and character of impacts of the Policy on the land-use trends in Sulawesi. As there is no clear information regarding the scale and spatial distribution of the MP3EI projects within this economic activity component, large scale environmental impacts may occur if agriculture production continues to increase in the future. Past trend analysis and worst-scenario analysis of agriculture development can be developed to formulate recommendations to prevent significant adverse impacts (i.e. impact on biodiversity and forests).

It is not clear to what extent the MP3EI implementation would affect the planning (budget) for agriculture development at local and regional levels and further verification would be required to assess the strategic impacts.

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

lative required

Climate Related

Change

Potential Planning

Conflicts

WideScale Cum

Environmental Quality

n/a Water

n/a Air & Climate

Land & Soil n/a

Ecosystems

n/a Forest & others n/a

C-22 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

lative required

Climate Related

Change

Potential Planning

Conflicts

WideScale Cum

n/a Coastal Areas n/a

n/a Biodiversity n/a

Socio- economic Aspects

Human Health n/a

Poverty n/a

n/a Livelihood n/a

C-23

C.6 Connectivity – Infrastructure (Including Energy Generation)

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

mulative

Climate

Change

Potential Planning

Conflicts

WideScale Cu

Environmental Quality There is a strong likelihood of cool water discharges used for the ports development that could lead to the degradation on coastal Further analysis on the use category of port water quality. If these locations of ports development is required (for mining or general (-) Yes development are adjacent with other purpose) residential areas and industrial development, there will be apparent cumulative impacts, not wide-scale.

Hydropower plants development is likely to Water Planned hydropowers in Central Sulawesi, cause deterioration to water quality in river South Sulawesi and Central Sulawesi system (watershed) but only in project (Kendari) specific; not wide scale. There is no known information (at least from Potential cumulative risks to watershed from (-) (-) the MP3EI projects) regarding wastewater Yes water resources infrastructure (reservoirs treatment facilities/infrastructure. Further etc) in specific areas analysis on specific areas for the location of Similar issues to coastal water in association water infrastructure is required. Locations to be to ports development determined. Decreased air quality from Existing areas with poor air quality in urban clustered/cumulative impacts from (-) Air & Climate (-) (-) areas where ports and coastal development powerplants development and ports take place (i.e. Makassar, Manado, Bitung) development, more considerations are

C-24 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

mulative

Climate

Change

Potential Planning

Conflicts

WideScale Cu

required for future industrial land use around the new ports. Potential changes in watershed hydrology may affect the groundwater level. Existing Further analysis regarding the scale of water Land & Soil land use depended from the groundwater infrastructrures development (and source of Yes may be degraded due to the changes the watershed) is required. (tertiary impact)

Ecosystems In addition to the road network expansion through projects envisaged in MP3EI, the A strong likelihood of conflict of land use intended corridor line through Central Sulawesi where planned roadways to cut through the (-) (-) (-) (as indicated in MP3EI Corridor Line) need to Yes protected forests areas. be further verified. The future spatial intentions regarding this deserve further verification.

Increased potential for forest conversion for new planned roadways. Forest & others Footprints of the forestry and the roadways (-) Locations need to be further established Yes itself to forest and other sensitive habitats (-) (-) Habitat fragmentation from the roadways development Increased roadway access to formerly inaccessible areas leading to increased ? (-) (-) opportunity and likelihood of illegal logging (forestry activities)

C-25

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

mulative

Climate

Change

Potential Planning

Conflicts

WideScale Cu

Cumulative impacts from ports development to coastal degradation and if some powerplants planned adjacent to coastal areas. Locations: coastal areas close to ports Coastal Areas Upgraded roadways and ports development (-) (-) along and/or adjacent to the coastal areas development (i.e. Makassar, Manado, Bitung). will contribute to disturbance to coastal ecosystem (coral, seagrass, and some endemic birds migratory habitat near the coast (i.e. Maleo))

Impacts to coastal biodiversity where ports development are planned in/adjacent to coral/ mangrove sensitive areas Further analysis regarding the exact locations Knock-on strategic impacts to protected (-)? (-) (-) of the infrastructure projects in association with Yes (terrestrial) species due interaction of habitat sensitive areas in coastal corridors/fragmentation with wide scale impacts in correlation to endangered Biodiversity protected species.

Infrastructure projects on protected areas (-) (-) Potential impacts from the energy infrastructures surrounding the Endemic Lakes system (Matano, Towuti) and (-) (-) combined with other activities and projects may generate cumulative impacts to the biodiversity.

C-26 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Scoping Matrix

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

mulative

Climate

Change

Potential Planning

Conflicts

WideScale Cu

Secondary impacts from ballast water in association to large-ports development that (-) Location in particular: Bitung may lead to the introduction of alien species (i.e. algae, invertebrates) Increased roadway access to formerly inaccessible areas leading to increased ? (-) opportunity and likelihood of illegal poaching

Socio- economic Aspects Secondary impacts from the infrastructure projects combined with other coastal development/industries contribute to the air (-) Locations to be further investigated Yes quality affecting public health of community Human Health living in coastal urban areas Potential impacts of transmissible diseases (i.e. HIV) from migrant workers working in the 0 (-) ports or human activities from coastal development.

Potential improved wealth and local economy through provision of better Poverty (+) (+) facilities/infrastructures in education and health services.

Infrastructure developments provide better

facilities leading to potential increased wealth Livelihood Potential secondary impacts from changes in ? ? Further analysis is required Yes water regimes to local agriculture (changes

C-27

Strategic Risk/Opportunities

Categories

Further

Sustainability Further Explanation & Likely Locations of Potential Issues of Concern Verification Receptors Strategic Issue

required

mulative

Climate

Change

Potential Planning

Conflicts

WideScale Cu

in irrigation system) and aquaculture.

Potential risks of inundation of settlements or production lands as a result of hydropower ? ? Further analysis is required Yes projects.

Potential risks of social conflicts with the indigenous people where planned Major conflicts are through mining but not in roadways/infrastructures take-up their ? (-) infrastructure development. Further analysis is Yes customary lands or provide access to the required formerly inaccessible areas with high cultural conservation value.

C-28 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

APPENDIX D –Stakeholder Consultation

This page is intentionally left blank

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation Meeting

D Stakeholder Consultation Meeting

D.1 List of Stakeholder Consultation Attendees

Day 1 – Tuesday, 11 March 2014

No Name Institution 1 Nizhar Marizi Bappenas 2 Dewi Safitri Bappeda Sulawesi Tengah 3 Amram BLH Sulawesi Barat 4 Muhammad Ramli Konsorsium Mitra Bahari, Sulawesi Tenggara 5 Naharuddin Universitas Tadulako, Palu 6 Melodi Tiolemba BLHD Prov. Sulteng 7 Mulyadi Joyo Martono BKSDA Sulteng 8 Ahmad Luthfi Hadiyanto LAPAN Parepare 9 Tity Iriani D Bappeda Provinsi Gorontalo 10 Firna Thamrin PPE Suma 11 Wakit Hasim PPE Suma 12 Doan Sitorus BLH Prov. Sulawesi Utara 13 Sofia Bappeda Sulut 14 Daniel Gagarin BLHD Sulteng 15 Amiruddin Ditjen Bangda 16 Nurina Kemenko Perekonomian 17 Afrike W.S Kemenko Perekonomian 18 Khairunnisa Kemenko 19 Rwan Barase Bappeda Sulawesi Tengah 20 Sondang L.G Ministry of Home Affairs 21 Fidaan Azuz Bappeda Sulawesi Selatan 22 Rima Yulianti KLH 23 Suminarto BBKSDA Sulsel 24 Laksmi Widyajaya KLH Amdal 25 Muh. Ridwan BLHD Sulsel 26 Hendrik BKSDA Sulut 27 Fany Matheus Bappeda Prov.Sulut 28 Sri Hidayat BLHD Prov. Sulsel 29 Frans BLHD Sulsel 30 Laode Asrul PPLH Universitas Hassanudin 31 Hasyim Universitas Negeri Gorontalo 32 Waode Muslihatun Bappeda Sulawesi Tenggara 33 Hanipa Bappeda Sulawesi Tenggara 34 Nanda Ratna Bappenas 35 Roni Megawanto Conservation International

D-1

Day 2 – Wednesday, 12 March 2014

No Name Institution 1 Nizhar Marizi Bappenas 2 Dewi Safitri Bappeda Sulawesi Tengah 3 Amram BLH Sulawesi Barat 4 Muhammad Ramli Konsorsium Mitra Bahari Sulawesi Tenggara 5 Naharuddin Untad 6 Melodi Tiolemba BLHD Prov. Sulawesi Tengah 7 Mulyadi Joyo Martono BKSDA Sulawesi Tengah 8 Ahmad Luthfi Hadiyanto LAPAN Pare-Pare 9 Tity Iriani D Bappeda Provinsi Gorontalo 10 Wakit Hasim PPE Suma 11 Doan Sitorus BLH Prov. Sulawesi Utara 12 Sofia Bappeda Sulawesi Utara 13 Daniel Gagarin BLHD Sulawesi Tenggara 14 Amiruddin Ditjen Bangda, MoHA Bappenas 15 Rwan Barase Sulteng 16 Sondang L.G Ditjen Bangda, MoHA 17 Fidaan Azuz Bappeda Sulawesi Selatan 18 Rima Yulianti KLH 19 Suminarto BBKSDA Sulawesi Selatan 20 Laksmi Widyajaya KLH 21 Muh. Ridwan BLHD Sulawesi Selatan 22 Hendrik BKSDA Sulawesi Utara 23 Fany Matheus Bappeda Prov.Sulawesi Utara 24 Sri Hidayat BLHD Prov. Sulawesi Selatan 25 Waode Muslihatun Bappeda Sulawesi Tenggara 26 Hanipa Bappeda Sulawesi Tenggara 27 Nanda Ratna Bappenas 28 Roni Megawanto Conservation International

D-2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation Meeting D.2 Scanned of Attendance List

D-3

D-4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation Meeting

D-5

D.3 Minutes from Public/ Stakeholder Consultation Meeting

MP3EI SEA

Minutes of Meeting

Meeting: MP3EI SEA Scoping Workshop for Sulawesi EC Date: 11-12 March 2014 Attendees: as attached Time: - Absent : - Venue: Hotel Santika, Makassar

Issues Action/Remarks

Day 1 – 11 March 2014 Agenda As attached in presentation 1. Introduction  Opening speech from KP3EI Connectivity Working Group Bappenas  Round Introductions of participants  Objectives of the workshop 2. Review of General and MP3EI SEA Processes 3. SEA Scoping Principles and Methods  Purpose  Common Approaches and Limitations  Scoping Examples  MP3EI Approach 4. Hands-on Scoping Exercise  Definition of Strategic Issues  Application of Scoping Matrix  Example of how to use GIS Database  Execution of hands-on scoping MP3EI Cases 5. Wrap up/ Closing Day 2 – 12 March 2014 Agenda As attached in presentation • Introduction • Review of the Definition of Strategic Issues • Review of Baseline Information & Autonomous Planning • Presentation of Findings − Approach to Expert Scoping − Illustration of EC SEA Scoping findings − Discussions and Q-A session • Lunch • Continued: EC SEA Scoping Findings and Discussion • Preliminary Recommendations • Plenary Session • Next Steps in MP3EI

Remarks and Feedbacks related to preliminary identification of “hotspots” South Sulawesi (Makassar broader area) All to note

Issues to consider: - Flood risks in Makassar. Makassar is formerly swamp areas and the present pressures from urban development has reduced the catchment areas. - Issue of watershed management (pollution, pressures from upstream activities) results in mangroves loss in Tallo watershed with impact to flood risks to Makassar city. - A study undertaken in Bone bay, South Sulawesi. Data in Bapedalda South Sulawesi. Bone bay partnership between South Sulawesi and Southeast Sulawesi to study the biodiversity and non-biodiversity aspect.

D-6 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation Meeting

- Existing coastal reclamation in Makassar and Maros regencies - Industrial development is concentrating in Makassar; as well as existing smelting industries - Energy generation, both coal and hydro (further capacities needed, existing potential needs to be investigated) - Traffic problems in Makassar - Conflicts over land-use, namely in forested north part of the region - Disaster management is of high importance – intensive flood risks in Makassar (formerly large swamp areas) - Issues of land capability and water capacity in South Sulawesi (e.g. Jeneberang river). Makassar has very low carrying capacity and will likely to continue in the future. - Watershed management improvement needed – water stress, intrusion of sea weater (verification needed), industrial pollution, water dams/reservoir for hydro energy contributes to stress - Fisheries potential assessment exist (3 years) – for consideration in further analysis - Bappeda: o consider reclamation, plantations development a nickel o lack of interaction of PPPs o classification/categorization for water and land (carrying) capacity for individual sectros should be considered in SEA o intensive use of pesticides is a problem

North Sulawesi (Manado-Bitung area) All to note

Issues to consider: - Toll-road development related conflict (direct impact on sensitive areas) - Unrestricted grow of Special Economic Zones (involving reclamation and mangroves removal and other coastal degradation) - Large land cover conversions – triggering floods, among other locations in Tondano lakes system. Case(s) of Natural reserve converted into production forest - Geothermal energy plant located in the vicinity of protected area – indirect impacts (water regime ?) - Bitung international Hub – will trigger change of livelihood, e.g. subsistence fishermen will be negatively affected - Issue of conflicting regulations and planning conflicts: governor regulations entail restriction of land-use change in protected areas x national regulations on energy development contradict Towuti, Mahalona and Matano lakes broader area All to note

Issues to consider: - Mangroves in the lakes, substantial swamp biodiversity - land-use conflict over oil plam plantation development, due to existence of two inconsistent concessions systems - contamination of water resources (both surface and ground water), lakes have status of water conservation area - future aquaculture development - Public health issues related to poor water quality in watersheds around lakes

Gorontalo All to note

Issues to consider: - Cases of fish export affected by heavy metals contamination of the products - Large conservation area in the east not considered in scoping map - Conflicts of subsistent agriculture and mining - Heavy metals pollution exceeds standards (Mercury) - Illegal gold mining difficult to address - Oil palm plantation development conflicts with food agriculture production

Palu broader area All to note

Issues to consider: - Increased urbanization, in conflict with protected areas – buffer zones of protected areas are under increasing pressure - Gold mining related pollution

D-7

- Water pollution of Palu city exceeds standards - Social conflict (historic roots) in the region, with impact on reputation of the region (decreasing turism potential) - Water shortages in the lakes (e.g. Poso lake), hosting endemic species; Poso lakes heavily polluted – loss of fish species, poaching, mining activities also present - Existing condition of Poso watershed contaminated from the mining activities - No data on water consumption by the mining activities, water used for powerplant in Poso - Biodiversity issue (endemic species of Sulawesi – e.g. maleo, anoa) - Reclamation in Palu from Donggala– triggers protests from the community - Social conflict of artisanal mining and industrial mining - Special Economic Zone in Palu – indication of investment in Cocoa and Automotive - Road conflicting with protected area - Seismic active areas around Palu - Concern over natural reserve Pangi Binangga – e.g. Maleo bird threatened by plantation development - Tomini Bay under pressure from pollution and industrial development

Other concerns relevant to MP3EI in Sulawesi EC - Water pollution issue should be seen not from one specific hotspot but also the entire island as the impact may come from upstream sector. Therefore, it is important to also review the PPP of each sector related to the issue.

Final discussions All to note

- Agro-industry recommendations – need for conditions on timber plantation around lakes - Connectivity issues – impacts of road Pare-Pare – Maros – Makassar - Need for location/area-specific recommendations and conditions - Community plantations shall not be limited (?) - Impact of erosion on reservoirs that supply water for human use – e.g. Jeneberang river (reservoir for Makassar) – sedimentation, water quality is less of issue than water quantity – carrying capacity of the watershed(s) shall be assessed as a part of planning/SEA - East Luwu regency, there are heavy metals pollution from natural sources (not from industry) – particularly relevant in Tempe lake. - Agriculture land suitability – classification of MoA – shall be considered in planning/SEA

D-8 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation Meeting

D.4 Activity Photos

Nizhar Marizi of KP3EI Connectivity Working Group officially opened the workshop

Wahyu Indraningsih from Ministry of Environment officially gave her opening speech at the workshop

D-9

Josh Van Berkel, MP3EI SEA Team Leader delivered his presentation at the workshop

Situation at the scoping workshop

D-10 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05

Stakeholder Consultation Meeting

Participant delivered her feedbacks at the workshop

Participants took a group picture together at the end of the workshop

D-11

This page is intentionally left blank

D-12 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) / Scoping Report / JVB / 2014-05