SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-scoping Report (Final Draft) Kalimantan Economic Corridor Ministry Of Foreign Affairs Of Denmark Draft Report November 2013 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 Pre-Scoping Report - Kalimantan Economic Corridor / JVB / 2013-11 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-scoping Report (Final Draft) Kalimantan 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 Final Draft submitted 19/11/2013 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 Pre-Scoping Report - Kalimantan Economic Corridor / JVB / 2013-11 CONTENTS 1 Introduction ................................................................................................................. 1 1.1 Background on MP3EI SEA ........................................................................................................... 1 1.2 SEA Process for Economic Corridors and Current Phase ............................................................ 1 1.3 Pre-scoping Activities ..................................................................................................................... 2 1.3.1 Early Stakeholder Discussions ...................................................................................................... 2 1.3.2 Review the MP3EI Planning for the Kalimantan EC, provincial Spatial Plans Development plans ............................................................................................................................................... 3 1.3.3 Developing preliminary list of key potential issues in Kalimantan EC ........................................... 3 1.3.4 Stakeholder Mapping ..................................................................................................................... 3 1.3.5 Organizing Pre-scoping and data collection workshop .................................................................. 3 1.3.6 Finalizing and disseminating Pre-Scoping Report ......................................................................... 4 1.4 Further steps .................................................................................................................................. 4 2 Overview of MP3EI planning in the Economic Corridor ........................................... 5 2.1 Delineation of Economic Corridor .................................................................................................. 5 2.2 MP3EI Planning for EC .................................................................................................................. 6 2.2.1 Main Planned Economic Activities ................................................................................................. 7 2.2.2 Main MP3EI Policies and Regulations ........................................................................................... 8 2.2.3 Main Planned Infrastructure ........................................................................................................... 8 2.3 Overview of Autonomous Provincial Planning ............................................................................. 10 2.3.1 East Kalimantan Provincial Planning ........................................................................................... 10 2.3.2 West Kalimantan Provincial Planning .......................................................................................... 10 2.3.3 South Kalimantan Provincial Planning ......................................................................................... 11 2.3.4 Central Kalimantan Provincial Planning ....................................................................................... 11 2.4 Overview of major ongoing/to-be-implemented projects ............................................................. 11 3 Summary of Relevant Baseline Features................................................................. 13 3.1 Environmental Quality .................................................................................................................. 13 3.1.1 Water ............................................................................................................................................ 13 3.1.2 Air and Climate............................................................................................................................. 14 3.1.3 Land and Soil ............................................................................................................................... 14 3.2 Ecosystems .................................................................................................................................. 18 3.2.1 Biodiversity ................................................................................................................................... 18 3.2.2 Forests ......................................................................................................................................... 19 3.2.3 Coastal Degradation .................................................................................................................... 23 3.3 Socio and Economic Aspects ...................................................................................................... 24 3.3.1 Human Health .............................................................................................................................. 24 3.3.2 Livelihood ..................................................................................................................................... 26 3.3.3 Industry and Mining ...................................................................................................................... 27 3.3.4 Energy and Waste ....................................................................................................................... 28 3.4 Environmental Management ........................................................................................................ 29 4 Preliminary Overview of the Potential Issues for EC .............................................. 30 4.1 Deforestation / Degradation of Forests Functions ....................................................................... 30 4.2 Human Health Risks .................................................................................................................... 30 4.3 Livelihood Opportunities .............................................................................................................. 31 4.4 Land and Soil Degradation .......................................................................................................... 31 4.5 Water and Air Pollution ................................................................................................................ 32 4.6 Loss of Biodiversity ...................................................................................................................... 32 4.7 Coastal Degradation .................................................................................................................... 33 i 4.8 Environmental Management Problems........................................................................................ 33 4.9 Other Specific Issues ................................................................................................................... 33 5 Preliminary Recommendations ............................................................................... 34 5.1 Identified Risks and Opportunitites .............................................................................................. 34 5.2 Initial Policy Recommendation ..................................................................................................... 35 6 References ................................................................................................................ 36 FIGURES Figure 2.1 Delineation map of Kalimantan Economic Corridor ....................................................................... 5 Figure 2.2 Main planned infrastructure in Kalimantan EC .............................................................................. 9 Figure 3.1 Peatland distribution maps in Kalimantan in 2002 (source: Wahyunto, 2006) ............................ 16 Figure 3.2 Extent of Oil Palm plantations on peatland in 1990, 2000, 2007 and 2010................................. 17 Figure 3.3 Historical trend and (linear) future projection of industrial oil palm plantation in Kalimantan (Source: Miettinen et al, 2012; p. 22)........................................................................................... 17 Figure 3.4 Conservation areas in Kalimantan (source: Ministry of Forestry, ND) ........................................ 19 Figure 3.5 a) Forest cover in Kalimantan and its allocated concession areas; and b) Forest in 2010 and Deforestation (2000-2010) .................................................................................................... 20 Figure 3.6 Indicative map of moratorium