Poverty and Social Impact Assessment Project Number: 47084 Grant No:XXXX September 2016 Republic of Indonesia: Community-Focused Investments to Address Deforestation and Forest Degradation Project Prepared by the Ministry of Environment and Forestry for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 2 September 2016) Currency Unit – rupiah (Rp) Rp1.00 = $0.000075 $1.00 = Rp13,280 ABBREVIATIONS ADB – Asian Development Bank APBN – AnggaranPendapatanBelanja Negara (Budget State) BAPPEDA – BadanPerencanaan Pembangunan Daerah (Regional Development Planning Agency) BAPPENAS – BadanPerencanaan Pembangunan Nasional (National Development Planning Agency) BPN – BadanPertanahanNasional (National Land Agency) CBFM – community based forestry management CIF – Climate Investment Fund CSO – civil society organization DAD – DewanAdat Dayak (Dayak Tribal Council) DMF – design and monitoring framework FIP – Forest Investment Program KPH – KesatuanPengelolaanHutan (forest management unit) FPIC – free prior and informed consent GHG – greenhouse gas GOI – Government of Indonesia HH – Households HPH – HakPengusahaanHutan(Natural Forest Concession Holders) HTI – HutanTanamanIndustri (Industrial Forest Plantation) IP – indigenous peoples ITTO – International Tropical Timber Organization LULUCF – Land Use Land-Use Change and Forestry M&E – monitoring and evaluation MDG – Millennium Development Goal MOEF – Ministry of Environment and Forestry MOFor – Ministry of Forestry MOHA – Ministry of Home Affairs NGO – non-government organization NTFP – non timber forest products PPTA – project preparatory technical assistance RAN GRK – RencanaAksiNasional Gas RumahKaca (National Action Plan for Reducing Greenhouse Gas Emissions) REDD+ – reducing emissions from deforestation and forest degradation, conservation, sustainable management of forests and enhancement of forest carbon stocks RTRW – Rencana Tata Ruang Wilayah (Government Spatial Plan) SFM – sustainable forest management STRANAS – StrategiNasional REDD+ (Indonesia National REDD+ Strategy) TOR – term of reference CONTENTS I. PROJECT BACKGROUND AND ASSESSMENT METHODS .............................................1 A. Project Rationale .............................................................................................................1 B. Project Description: Project Impact, Outcome, and Outputs ............................................2 C. The Project Sites .............................................................................................................2 D. Approach and Methods for Poverty and Social Impact Assessment ................................5 II. CONTEXTUALIZING THE FOREST INVESTMENT PROGRAM (FIP) ................................7 A. National Context and Significance of the Kalimantan Region ..........................................7 1.National Perspective .....................................................................................................7 2.The Kalimantan Region ................................................................................................9 B. Social Survey Results .................................................................................................... 10 1.West Kalimantan ........................................................................................................ 10 2.Kapuas Hulu District ................................................................................................... 11 3.Sintang District ........................................................................................................... 14 III. STAKEHOLDER IDENTIFICATION AND ASSESSMENT ................................................. 16 A. Stakeholder Identification .............................................................................................. 16 1.Primary Stakeholders ................................................................................................. 17 2.Secondary Stakeholders ............................................................................................. 23 B.Stakeholder Power Relations ......................................................................................... 24 IV. POVERTY ASSESSMENT ................................................................................................ 26 A. Framework for Poverty Assessment .............................................................................. 26 1.Poverty in Indonesia ................................................................................................... 26 2.Forest Resources and Poverty ................................................................................... 28 B. The Nature of Poverty at the Village Level ..................................................................... 30 1.Poverty, Land and Natural Resources ........................................................................ 30 2.Causes of Poverty at the Village Level ....................................................................... 30 V. SOCIAL IMPACTS, RISKS AND MITIGATING MEASURES ............................................. 32 A. Overall Social Impacts and Strategies to Address Impacts ............................................ 32 1.Indigenous Peoples .................................................................................................... 32 2.Involuntary Resettlement ............................................................................................ 32 3.Impacts on Women ..................................................................................................... 37 B. Social Risks ................................................................................................................... 37 1.Labor .......................................................................................................................... 37 2.Affordability ................................................................................................................. 37 3.Communicable Diseases ............................................................................................ 38 C. Development of Action Plans ......................................................................................... 38 1.FIP Consultation and Participation Plan ...................................................................... 38 2.FIP Communications Plan .......................................................................................... 47 VI. MONITORING AND EVALUATION .................................................................................... 55 A. Targets and indicators ................................................................................................... 55 B. Monitoring and Evaluation Institutional Arrangements ................................................... 55 C. Monitoring Tools and General Procedures .................................................................... 56 VII. RECAPITULATION ON POVERTY AND SOCIAL ASSESSMENT .................................... 58 A. On Beneficiaries ............................................................................................................ 58 B. On Key Poverty and Social Issues ................................................................................. 58 C. On Design Features ...................................................................................................... 59 1.Output 1: Community-focused and gender-responsive REDD+ pilot projects in Kapuas Hulu and Sintang districts implemented ......................................................................... 59 2.Output 2: Provincial REDD+ strategy in West Kalimantan effectively implemented .... 60 3.Output 3: Sub-national policies on carbon stock improvement harmonized with national policies .......................................................................................................................... 60 VIII. REFERENCES .................................................................................................................. 61 List of Tables Table 1. Initial Project-Participating Villages in Sintang and Kapuas Hulu ...................................4 Table 2. Identification and Brief Description of Sample Villages ..................................................7 Table 3. Administrative Units of West Kalimantan ..................................................................... 11 Table 4. Demographic indicators of Kapuas Hulu 2013 ............................................................. 12 Table 5. Demographic feature of villages in project areas ......................................................... 12 Table 6. Highest Education Level attained by Male and Female in Kapuas Hulu 2013.............. 12 Table 7. Education indicators of villages in direct project area .................................................. 13 Table 8. Villagers occupation in the direct project area ............................................................. 13 Table 9. Income and Expenditure Pattern of Villagers in Project Area ....................................... 13 Table 10. Assets possession by villagers .................................................................................. 14 Table 11. Demographic Indicators of Sintang District 2013 ....................................................... 14 Table 12. Education profile of villagers ...................................................................................... 15 Table 13. Villagers occupation in direct project area ................................................................