Biodiversity Offset Management Plan Project Number: 42916-014 October 2020 INO: Sarulla Geothermal Power Generation Project Prepared by Sarulla Operations Limited The biodiversity offset management plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area Biodiversity Offset Management Plan Sibualbuali Corridor Biodiversity Offset Site 2 October 2020 Project No.: 0496296 The business of sustainability Document details Document title Biodiversity Offset Management Plan Document subtitle Sibualbuali Corridor Biodiversity Offset Site Project No. 0496296 Date 2 October 2020 Version 3.0 Author DN, SM, AS, and JG Client Name Sarulla Operations Limited Document history ERM approval to issue Version Revision Author Reviewed by Name Date Comments Draft 00 David David Samantha 15.10.2019 Nicholson, Nicholson McCrea Sebastian Madden & Anisa Salsabilla Draft 01 David David Samantha 21.02.2020 Nicholson, Nicholson McCrea Jessie Gan, & Anisa Salsabilla Final 02 David David Samantha 14.05.2020 Nicholson & Nicholson McCrea Anisa Salsabilla Final 03 David David Nat 02.10.2020 Nicholson & Nicholson and Vanitchyangkul Anisa Les Hatton Salsabilla www.erm.com Version: 3.0 Project No.: 0496296 Client: Sarulla Operations Limited 2 October 2020 Signature Page 2 October 2020 Biodiversity Offset Management Plan Sibualbuali Corridor Biodiversity Offset Site Nat Vanitchyangkul Partner PT ERM Indonesia Centennial Tower 40th Floor Suite B1 Jl. Jend. Gatot Subroto Kav. 24-25 Jakarta 12930, Indonesia © Copyright 2020 by ERM Worldwide Group Ltd and / or its affiliates (“ERM”). All rights reserved. No part of this work may be reproduced or transmitted in any form, or by any means, without the prior written permission of ERM. www.erm.com Version: 3.0 Project No.: 0496296 Client: Sarulla Operations Limited 2 October 2020 BIODIVERSITY OFFSET MANAGEMENT PLAN CONTENTS Sibualbuali Corridor Biodiversity Offset Site CONTENTS EXECUTIVE SUMMARY ....................................................................................................................... IV 1. BACKGROUND ............................................................................................................................ 1 1.1 Project Description ......................................................................................................................... 1 1.2 Biodiversity Objectives ................................................................................................................... 1 1.3 Relevant Environmental and Social Action Plan items .................................................................. 1 1.4 Summary of legal and other obligations ......................................................................................... 2 Asian Development Bank Safeguard Policy Statement ................................................ 3 IFC PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources ..................................................................................................................... 3 Business and Biodiversity Offsets Programme (BBOP) Guidelines .............................. 5 ADB Safeguard Policy Requirements ........................................................................... 6 2. RESIDUAL IMPACTS ON BIODIVERSITY VALUES .................................................................. 7 2.1 Residual Impacts to Habitats ......................................................................................................... 7 2.2 Area Required to Achieve No-Net-Loss ......................................................................................... 8 2.3 Critical Habitat Species .................................................................................................................. 9 3. BIODIVERSITY OFFSET OPTIONS CONSIDERED ................................................................. 10 3.1 Proposed Biodiversity Offset Options .......................................................................................... 10 3.2 Stakeholder Consultation ............................................................................................................. 10 3.3 Peer Review ................................................................................................................................ 11 3.4 Analysis of Biodiversity Offset Feasibility ..................................................................................... 11 4. RECOMMENDED BIODIVERSITY OFFSET ............................................................................. 14 4.1 Description of Biodiversity Offset Area ........................................................................................ 14 4.2 Biodiversity Offset Management Actions ..................................................................................... 15 4.3 Time Period Biodiversity Offset Actions Apply ............................................................................. 19 4.4 Roles and Responsibilities ........................................................................................................... 19 Responsibilities of SOL ............................................................................................... 19 Responsibilities of the Biodiversity Offset Advisory Committee .................................. 21 Responsibilities of the Community .............................................................................. 22 Responsibilities of NGO Service Provider ................................................................... 22 4.5 Five Yearly Review of BOMP and CCA ....................................................................................... 23 4.6 Roles and Responsibilities ........................................................................................................... 23 4.7 Capital Equipment ....................................................................................................................... 24 5. NO-NET-LOSS ASSESSMENT ................................................................................................. 26 5.1 Biodiversity Offset Area ............................................................................................................... 26 5.2 Results of Habitat Hectare Calculations for Biodiversity Offset Area ........................................... 30 5.3 Assessment of No-Net-Loss for Species that Trigger Critical Habitat .......................................... 30 6. BIODIVERSITY VALUES OF BIODIVERSITY OFFSET AREA ................................................ 36 6.1 Biodiversity Survey Results ......................................................................................................... 36 7. ECONOMIC AND SOCIAL VALUES OF BIODIVERSITY OFFSET AREA .............................. 41 7.1 Land Use within the Biodiversity Offset Area ............................................................................... 41 Social, Economic and Land Use Survey ..................................................................... 41 Social Profile ............................................................................................................... 41 Economic Profile of Landowners................................................................................. 43 Results of Land Use Survey ....................................................................................... 43 Assessment of Potential Economic Displacement ...................................................... 47 Economic Value of Commodity Production ................................................................. 48 Livelihood Support (Compensation) ............................................................................ 49 www.erm.com Version: 3.0 Project No.: 0496296 Client: Sarulla Operations Limited 2 October 2020 Page i BIODIVERSITY OFFSET MANAGEMENT PLAN CONTENTS Sibualbuali Corridor Biodiversity Offset Site 8. BIODIVERSITY OFFSET MANAGEMENT ACTIONS ............................................................... 50 8.1 CCA Management Actions ........................................................................................................... 50 Hunting, Poaching and Logging Management ............................................................ 50 Timber and NTFP Harvest Strategy ............................................................................ 51 Ground and Arboreal Habitat Management Strategy .................................................. 52 Injured Wildlife Management Protocol ........................................................................ 53 Patrols ......................................................................................................................... 54 Wildlife Corridor Enrichment Planting ......................................................................... 55 Agroforestry Development Program ............................................................................ 57 Environmental Education Support Program ...............................................................