INTERIM SESA DOCUMENT MINISTRY OF ENVIRONMENT AND FORESTRY JAMBI PROVINCE REPUBLIC OF INDONESIA October 2019 TABLE OF CONTENTS TABLE OF CONTENTS .....................................................................................I LIST OF TABLES.............................................................................................III LIST OF FIGURES .......................................................................................... IV LIST OF APPENDICES ................................................................................... V LIST OF ACRONYMS ..................................................................................... VI 1.0 INTRODUCTION .....................................................................................1 1.1 BACKGROUND............................................................................................. 1 1.2 OBJECTIVE .................................................................................................. 4 1.3 SCOPE OF THE SESA.................................................................................. 5 2.0 APPROACH ............................................................................................6 2.1 DATA COLLECTION ..................................................................................... 6 2.2 SCREENING AND SCOPING FOR THE SESA............................................. 7 2.2.1 Formulation of Drivers of Deforestation and Forest Degradation ..................................................................................... 7 2.2.2 Identification of Environmental and Social Issues under the Project Document for J-SLMP ....................................................... 10 2.3 STAKEHOLDER ANALYSIS ....................................................................... 12 2.3.1 Stakeholder Identification .............................................................. 12 2.3.2 Stakeholder Mapping ..................................................................... 15 2.3.3 Institutional Capacity Assessment ................................................. 24 2.4 DATA ANALYSIS ........................................................................................ 25 2.4.1 Risk and Impact Analysis............................................................... 26 2.4.2 Gap Analysis ................................................................................. 27 2.5 PUBLIC CONSULTATION .......................................................................... 27 2.6 LIMITATIONS .............................................................................................. 27 3.0 STRATEGIC CONTEXTS OF REDD+ IN INDONESIA ........................27 3.1 KEY PROCESSES OF REDD+ READINESS .............................................. 28 3.2 STRATEGIC RATIONALE .......................................................................... 34 3.3 SAFEGUARD INITIATIVES IN INDONESIA ................................................ 37 3.3.1 SIS-REDD+ Indonesia ................................................................... 37 3.3.2 Safeguards Formulation ................................................................ 37 3.4 SELECTION OF JAMBI PROVINCE ........................................................... 38 3.5 REDD+ CONSULTATION PROCESSES .................................................... 39 3.5.1 Consultation Process ..................................................................... 40 3.5.2 Summary of the Consultation Outcomes ....................................... 42 3.5.3 Next Plan for Consultation and Engagement ................................. 43 3.6 LESSONS LEARNED FROM PREVIOUS ER PILOT ACTIVITIES ............. 43 3.6.1 Policies to Protect Natural and Forest Resources .......................... 44 SESA Document – Jambi i 3.6.2 Participatory Planning and Spatial Planning .................................. 46 3.6.3 Government Capacity to Protect and Supervise Forest Areas ....... 47 3.6.4 Incentives and Capacity for Sustainable Forest and Plantation Management ................................................................. 48 3.6.5 Alternative Livelihoods, Productivity of Agriculture, and Access to Technology and Finance ............................................... 50 3.6.6 Lessons Learned on Conflict and Dispute Resolution .................... 52 4.0 DESCRIPTION OF THE ERP ...............................................................52 4.1 COMPONENT 1: STRENGTHENING POLICY AND INSTITUTIONS .......... 53 4.1.1 Sub-component 1.1: Institutional Strengthening ............................ 53 4.1.2 Sub-component 1.2: Enabling Environment for ER Program ......... 53 4.1.3 Sub-component 1.3: Policy and Regulation ................................... 54 4.2 COMPONENT 2: IMPLEMENTING SUSTAINABLE LAND MANAGEMENT ........................................................................................... 55 4.2.1 Sub-component 2.1: Integrated Forest and Land Management ................................................................................. 55 4.2.2 Sub-component 2.2: Private Sector Partnership for Improved Forest and Land ManagementInvestments and Partnerships ........ 57 4.3 COMPONENT 3: PROJECT MANAGEMENT, MONITORING AND EVALUATION, AND REPORTING .............................................................. 58 4.3.1 Sub-component 3.1: Project Management ..................................... 59 4.3.2 Sub-Component 3.2: Monitoring, Evaluation, and Reporting ......... 60 5.0 BASELINE CONDITIONS .....................................................................60 5.1 GEOSPATIAL DATA QUALITY .................................................................. 60 5.2 LAND COVER AND LAND STATUS IN PERFORMANCE EVALUATION AREA (WPK) ....................................................................... 65 5.2.1 Forestry Sector .............................................................................. 66 5.2.2 Plantation Sector ........................................................................... 69 5.2.3 Mining Sector ................................................................................ 71 5.3 ENVIRONMENTAL BASELINE ................................................................... 72 5.3.1 Biodiversity .................................................................................... 72 5.3.2 Critical Land and Watershed Areas ............................................... 74 5.3.3 Social Forestry .............................................................................. 76 5.3.4 Forest Fire ..................................................................................... 77 5.4 SOCIAL BASELINE .................................................................................... 78 5.4.1 Demographics, Livelihood and Socio-cultural Diversity .................. 78 5.4.2 Forest and Local Communities ...................................................... 83 5.4.3 Land Tenure and Natural Resource Conflicts and Disputes ........... 86 5.4.4 Relevant Gender Aspects in the ER Areas .................................... 96 5.5 ECONOMIC ASSESSMENTS RELATED TO THE ERP .............................. 97 5.5.1 Economic Situation in Jambi .......................................................... 97 5.5.2 Political Economy of Jambi ............................................................ 99 5.6 ENVIRONMENTAL AND SOCIAL RISK INDICATORS ............................ 100 5.6.1 Scenario Analysis ........................................................................ 100 5.6.2 Environmental and Social Components ....................................... 106 SESA Document – Jambi ii 5.6.3 Environmental and Social Indicators ............................................ 107 6.0 POLICY AND REGULATION FRAMEWORK ..................................... 111 6.1 GOI REGULATIONS ................................................................................. 111 6.2 REGULATORY ENFORCEMENT AND CAPACITY ASSESSMENT ......... 114 6.3 IMPLEMENTATION OF SAFEGUARD POLICIES .................................... 118 6.4 GAP/COMPATIBILITY ANALYSIS............................................................ 119 7.0 ENVIRONMENTAL AND SOCIAL IMPACT AND RISK ASSESSMENT ....................................................................................128 7.1 COMPONENT 1: STRENGTHENING POLICY & INSTITUTIONS ............. 129 7.1.1 Sub-component 1.1: Institutional Strengthening .......................... 129 7.1.2 Sub-component 1.2: Enabling Environment for Emission reduction Program ....................................................................... 133 7.1.3 Sub-component 1.3: Policy and Regulation ................................. 136 7.2 COMPONENT 2: IMPLEMENTING SUSTAINABLE LAND MANAGEMENT ......................................................................................... 139 7.2.1 Sub-component 2.1: Integrated Forest and Land Management ............................................................................... 139 7.2.2 Sub-component 2.2: Private Sector Partnerships for improved Forest and Land Management ..................................... 144 7.3 COMPONENT 3: PROJECT MANAGEMENT, MONITORING AND EVALUATION, AND REPORTING ............................................................ 148 7.3.1 Sub-Component 3.1 and 3.2: Program Management, Monitoring and Evaluation, and Reporting ................................... 149 8.0 POLICY IMPLICATIONS AND PROPOSED RECOMMENDATIONS .......................................................................151 8.1 KEY ENVIRONMENTAL AND SOCIAL CONSIDERATIONS ...................