sea for indonesian master plan for accelerated economic...

Ministry Of Foreign Affairs Of Denmark

Report

March 2014

SEA for Indonesian Master Plan for

Accelerated Economic Development

(MP3EI)

Pre-Scoping Report

Sumatra Economic Corridor

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03

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SEA for Indonesian Master Plan for

Accelerated Economic Development

(MP3EI)

Pre-Scoping Report (Final Draft)

Sumatra Economic Corridor

Prepared for Ministry Of Foreign Affairs Of Denmark

Represented by Mr Peter Oksen

Project manager Joshua Jon van Berkel

Project number 61800814

Approval date 01/2014

Revision 0

Classification Open/Restricted/Confidential


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CONTENTS

1 Introduction ................................................................................................................. 1 1.1 Background on MP3EI Project ....................................................................................................... 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 Sumatra EC, provincial Spatial Plans Development

plans ............................................................................................................................................... 3 1.3.3 Developing preliminary list of key potential issues in Sumatra 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 SEA steps .......................................................................................................................... 4

2 Overview of MP3EI Planning in the Sumatra EC ....................................................... 5 2.1 Delineation of the Sumatra EC ...................................................................................................... 5 2.2 MP3EI Planning for EC .................................................................................................................. 6 2.2.1 Main MP3EI Planned Economic Activities ..................................................................................... 6 2.2.2 Main MP3EI Policies and Regulations ........................................................................................... 7 2.2.3 Main Planned MP3EI Infrastructure ............................................................................................... 7 2.3 Overview of Autonomous Provincial Planning ............................................................................... 8 2.4 Overview of Major On-going or ‘To-be-implemented’ Projects .................................................... 11

3 Overview of Baseline Features in the Sumatra EC ................................................. 13 3.1 Environmental Quality .................................................................................................................. 13 3.1.1 Water ............................................................................................................................................ 13 3.1.2 Air and Climate............................................................................................................................. 14 3.1.3 Land and Soil ............................................................................................................................... 15 3.2 Ecosystems .................................................................................................................................. 16 3.2.1 Biodiversity ................................................................................................................................... 16 3.2.2 Forests ......................................................................................................................................... 17 3.2.3 Coastal Areas ............................................................................................................................... 17 3.3 Social and Economic Aspects ...................................................................................................... 18 3.3.1 Human Health .............................................................................................................................. 18 3.3.2 Livelihood ..................................................................................................................................... 19 3.3.3 Industry and Mining ...................................................................................................................... 19 3.3.4 Energy and Waste ....................................................................................................................... 20

4 Preliminary Overview of the Potential Key Issues for Sumatra EC ....................... 21 4.1 Deforestation / Degradation of Forests Functions ....................................................................... 21 4.2 Human Health Risks .................................................................................................................... 22 4.3 Livelihood Opportunities .............................................................................................................. 23 4.4 Land and Soil Degradation .......................................................................................................... 24 4.5 Water and Air Pollution ................................................................................................................ 24 4.6 Loss of Biodiversity ...................................................................................................................... 26 4.7 Coastal Degradation .................................................................................................................... 27 4.8 Environmental Management ........................................................................................................ 27

ii SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03

5 Main Conclusions and Preliminary Recommendations Resulting from Pre-

scoping ...................................................................................................................... 29 5.1 Identified Risks and Opportunities ............................................................................................... 29 5.2 Initial Policy Recommendations ................................................................................................... 30

FIGURES

Figure 2.1 Main Planned Activities (Coordinating Ministry for Economic Affairs, 2013) ................................. 5 Figure 2.2 Main Planned Infrastructure (Coordinating Ministry for Economic Affairs, 2013) .......................... 8

TABLES

Table 3.1 Water quality in priority watershed in Sumatra ............................................................................ 13 Table 3.2 Health cases in Sumatra .............................................................................................................. 18 Table 3.3 Waste generation statistics in Sumatra ....................................................................................... 20 Table 4.1 Potential forest issues .................................................................................................................. 21 Table 4.2 Potential human health issues ..................................................................................................... 22 Table 4.3 Potential livelihood issues ............................................................................................................ 23 Table 4.4 Potential land and soil issues ...................................................................................................... 24 Table 4.5 Potential water and air quality issues .......................................................................................... 25 Table 4.6 Potential biodiversity issues ......................................................................................................... 26 Table 4.7 Potential coastal area issues ....................................................................................................... 27 Table 4.8 Potential environmental management issues .............................................................................. 28

APPENDICES

A MP3EI Planning Information in Sumatra Economic Corridor

B Supporting Information on Pre-scoping Activities

C List of References

Introduction

1

1 Introduction

1.1 Background on MP3EI Project

In 2011, the Government of Indonesia introduced the first version of the Master Plan for

Acceleration and Expansion of Indonesia Economic Development 2011-2025 (MP3EI). The

MP3EI represents a core of Indonesia’s long-term development strategy with its prime objective

“to realize the Indonesia 2025 vision to create a self-sufficient, advanced, just, and prosperous

Indonesia and to transform Indonesia into a developed country by 2025”. The MP3EI includes a

strategic focus on 22 economic activities (i.e. the Policy) and the implementation of these

activities in the defined Economic Corridors (ECs).

While executing the recently released updated version of the MP3EI, however, it was realised

that the MP3EI and associated National Medium Term Development Plan (RPJMN) needed to

deepen their consideration of social and environmental factors to assure the overall vision of

sustainability in Indonesia. Thus, along with several other initiatives, the Strategic Environmental

Assessment (SEA) was chosen as a method for realizing the required level of integrated policy

and planning development. The SEA is required by Indonesian legislation for policy, planning

and program development.

To accomplish the required SEA Greening, Bappenas, together with the Ministry of Economic

Coordination a key MP3EI coordinating body of the Government of Indonesia (KP3EI), was

charged with developing an appropriate SEA approach. This approach entails the execution of

one MP3EI ‘Policy’ SEA and six Economic Corridor (EC) SEAs. Further, Bappenas approached

the Royal Danish Embassy and DANIDA for assistance via the third instalment of the

Environmental Support Program (ESP3).

The project MP3EI SEA was launched in June 2013 and shall last until July 2014. This

document consists of the pre-scoping reporting of one of the six EC SEAs.

1.2 SEA Process for Economic Corridors and Current Phase

In accordance with general objectives of SEA i.e. addressing the strategic levels of decision-

making to effectively minimise risks to environmental resources and human health likely

resulting from policy, plan or program implementation, whilst providing opportunities for growth

and sustainable development options, the MP3EI SEA intends to provide creditable strategic

environmental analyses of the MP3EI Policy and Economic Corridor Planning and, where

necessary, recommendations on how to minimize or avoid associated negative effects and the

means to strengthen positive effects. Optimally, the SEAs shall foster the integrated evolution of

a truly sustainable MP3EI, along with the associated planning procedures (e.g. RPJMN and

provincial planning) as well as – to the extent possible – individual projects.

The SEA process for the Economic Corridor includes following analytical steps:

• Pre-scoping involves the initial analysis of the Economic Corridor (EC) Plans and related

baseline features to focus the SEAs and provides likely feedback on the key issues – this

step includes also first consultations with the relevant stakeholders through workshops in

each EC.

• Scoping Analysis involves comprehensive identification of the key strategic issues via

structured expert analyses and stakeholders´ consultations for each EC.

2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03

• Analysis of likely effects of proposed activities in ECs involves the verification if an

identified issue is strategic through appropriately developed qualitative and (semi)

quantitative analysis techniques.

• Formulation of Mitigation Measures is based on the characterisation of the strategic

issues and likely impacts identified from the previous stage. This will allow for experts to, as

far as possible, pinpoint feasible and implementable measures to avoid or mitigate likely

adverse impacts as well as to enhance potential positive ones.

• Compilation of the SEA Report to summarize all findings including conclusions from

consultations with relevant stakeholders and formulate final set of the recommendations.

This document, as provided above, presents the initial pre-scoping EC feedback and is the

current stage of the SEA EC process. It has been conducted during September – October 2013

and involved initial preliminary analysis of the likely strategic issues for the Sumatra EC. It has

been carried out by the MP3EI SEA Team experts, with support from consultation with the

central authorities and national NGOs; as well as the information obtained from the Pre-scoping

& Baseline Workshop MP3EI SEA for Sumatra EC (Medan, October 2nd

, 2013 – see Appendix

B.3 for detailed information). Besides analytical work and consultations, the data collection –

especially provincial Spatial and Development Plans – has also been undertaken as part of pre-

scoping tasks.

This report summarizes findings from the pre-scoping analyses and consultations i.e. it provides

an overview of the preliminary scope of assessment, baseline data and relevant plans´ review.

Findings from pre-scoping will provide a basis for further and detailed analysis of the key

strategic issues in the scoping phase.

1.3 Pre-scoping Activities

The pre-scoping activities of Sumatra EC were performed to assist definition of the preliminary

scope of the assessment of the EC (i.e. the list of the key strategic issues) in order to support

subsequent scoping analysis and, as deemed necessary, provide data for further analytical

work.

Activities to carry out the aforementioned are described in the following subsections.

1.3.1 Early stakeholder discussions

A variety of pre-scoping issues were discussed with the KP3EI, Bappenas and particularly the

leading ministry of Sumatra EC (Ministry of Forestry) as well as other stakeholders related to

Sumatra EC. The focus of these discussions was:

• Obtaining a list of projects initiated or soon to be initiated, stages of completion for

implemented projects; selection criteria for projects (if applied) in Sumatra

• Determining linkages between MP3EI EC and other plans at the national and provincial

levels

• Uncovering opportunities for SEA input at the EC level (e.g. room for input or modification;

integration of environmental criteria)

• Identifying what KP3EI/Bappenas/KLH considers the key environmental and social concerns

and problems related to the implementation of the MP3EI within Sumatra EC.

• Discover the accessibility of provincial level data and information (both from the GOI and

other stakeholders)

Introduction

3

The summary of discussions is as follow:

• Ministry of Forestry have shown and share the recent information of projects a list of

projects initiated or soon to be initiated, stages of completion for implemented projects;

selection criteria for projects (if applied) in Sumatra and as a leading ministry for Sumatra

EC, they will support the SEA process by share the recent information to SEA team.

• Ministry of Forestry will give access to forestry data and information in Sumatra and other

Islands

• To determining the linkages between MP3EI and provincial plans, Bappenas will provides

notes/letters to provincial government within Sumatra EC to provide the relevant documents

1.3.2 Review the MP3EI Planning for the Sumatra EC, provincial Spatial Plans Development plans

A review of the MP3EI Economic Activities proposed for Sumatra EC and the provincial plans

within the EC has also been undertaken during the pre-scoping phase in order to assist to the

scoping process with a full understanding of the objectives of the relevant plans, proposed

developments and constraints for each area. However, since the most planning documents are

available in the provincial level, only the information regarding the status of the plans are

presented at this stage.

1.3.3 Developing preliminary list of key potential issues in Sumatra EC

Using the master list of key strategic issues identified for the MP3EI Policy SEA, a more specific

overview has been developed for Sumatra EC using secondary literature (e.g. Environmental

Yearbook, etc.). The information has been briefly summarised in line with the following

principles:

• Highlighting existing environmental and social issues of importance in Sumatra EC

• Specify detailed problems and concerns for each issue within Sumatra EC

• Identified the needs for further data/information

• Identification of key stakeholders relevant to specific issues in Sumatra EC

1.3.4 Stakeholder mapping

With assistance from the project stakeholders, the SEA team have prepared an initial list of

relevant stakeholders for Sumatra EC during the pre-scoping phase. The initial list of relevant

stakeholders in Sumatra can be viewed in detail in Appendix C.

1.3.5 Organizing Pre-scoping and data collection workshop

A workshop was organized in Medan on October 2nd, 2013, in order to:

• To get feedback on proposed issues, concerns and problems relevant to a given EC

• To get information on ongoing and planned development

• To obtain baseline data from provincial agencies

Conclusions from the discussions and main comments received are summarized in Appendix

B.3 of this Report.


1.3.6 Finalizing and disseminating Pre-Scoping Report

Considering findings from the activities above, the Pre-Scoping Report has been drafted and

open for additional comments through the MP3EI SEA Project website.

1.4 Further SEA steps

The next immediate step after pre-scoping is to undertake scoping activities. This will include a

number of activities, including: (a) collection of additional data and information needed as

identified in the Pre-Scoping phase; (b) literature review of data and information collected for

supporting the list of potential key issues in the Economic Corridor; (c) undertaking internal

scoping among the SEA experts; (d) undertaking SEA Scoping Workshop with stakeholders;

and (e) completing and submitting final Scoping Report.

Key steps in planning for the scoping phase include:

• Follow up with participants from the pre scoping workshops to collect baseline datasets

identified during the workshops.

• For Sumatra EC target additional baseline data focusing on key economic sectors proposed

by the MP3EI

Overview of MP3EI Planning in the Sumatra EC

5

2 Overview of MP3EI Planning in the Sumatra EC

This section provides an overview of the development proposed by the MP3EI for Sumatra EC,

and it also outlines the status and main features of the provincial plans (both spatial and

development plans) based on MP3EI document on August 2013. The presented information will

possibly deviate from the latest MP3EI since it will be continually edited and updated. However,

currently available information is given to provide wider understanding of expected development

within Sumatra EC.

2.1 Delineation of the Sumatra EC

Sumatra island is divided into ten (10) provinces: Aceh, North Sumatra, Riau, Riau Island, West

Sumatra, Jambi, Bengkulu, South Sumatra, Bangka Belitung Island and Lampung. For the

MP3EI, the Sumatra EC consists of 11 economic centres: Banda Aceh, Medan, Pekanbaru,

Jambi, Palembang, Tanjung Pinang, Pangkal Pinang, Padang, Bandar Lampung, Bengkulu and

Serang.

There are 6 Potential Investment Focus Area (Potential KPI) and 13 Priority Investment Focus

Areas (Priority KPI), including KSN Selat Sunda and Iron-Steel Industry in Cilegon (Banten,

Java). Potential KPI Anambas is proposed by local government as well as Potential KPI Danau

Toba, a National Tourism Area, is proposed by Ministry/Agencies.

Figure 2.1 Main Planned Activities (Coordinating Ministry for Economic Affairs, 2013)


2.2 MP3EI Planning for EC

The development of economic corridors in Indonesia is based on the potentials and advantages

inherent in each region throughout Indonesia. As a country consisting of thousands islands and

located between two continents and two oceans, Indonesia archipelago has a unique

combination of economic potentials. Specific major islands or regions having its own strategic

future-role in achieving Indonesia’s 2025 vision.

Sumatra Economic Corridor has the theme Production and Processing Center of the Earth and

the Nation's Energy. In general, the Sumatra Economic Corridor thrives in economic and social

fields with the main economic activities such as oil palm, rubber and coal. Moreover, Sumatra is

expected to be the "Gateway to the national economy markets of Europe, Africa, South Asia,

East Asia, and Australia".

2.2.1 Main MP3EI Planned Economic Activities

The location/node of economic activities is indicated in specific colours in Figure 2.1.

Main MP3EI planned economic activities that developed in 19 KPIs in the Sumatra EC are palm

oil plantation, rubber, coal, shipyard, steel and Sunda Strait development.

The investment value for economic corridor will be IDR458.198 billion in real sector and

IDR838.574 billion in infrastructure including Sunda Strait Bridge. At the ground-breaking stage

(2013-2014), there will be IDR115.639 billion invested in this corridor. The biggest value in real

sector will be invested in coal mining (IDR93.7 billion), tourism infrastructure (IDR75.9 billion),

and iron-steel (IDR58.5 billion).

Palm Oil In Sumatra, the main economic activities of the Palm huge economic contribution, where 65

percent of the land in the Indonesian palm oil producer located in Sumatra. This activity is also

wide open jobs. Approximately 38 percent of palm oil land owned by small farmers

Rubber Indonesia is the second largest producer for natural rubber in the world, supplied about 28

percent of world rubber production in 2011. Sumatra Economic Corridor contributes about 63

percent of the nation’s rubber production. Significant demand for natural and synthetic rubber in

the future will likely happen due to fast growing of the automotive industry.

Coal Indonesia, a rich country for coal and thermal coal, provides 26% of the world coal exports.

Approximately 52.4 billion tons of coal resources are in Sumatra, and about 90% are located in

South Sumatra. Annual Indonesia coal production reaches 246.68 million tons/year.

Shipping Demand for shipbuilding, ship-making industry or ship repair, is determined by vessels demand

and shipping traffic intensity in Indonesia. The number of shipyard with capacity above 10,000

DWT/180.000GT is approximately only 10% from the number of shipyards with capacity less

than 500DWT/20,000GT. This condition indicates that Indonesian large capacity shipyards

building industry needs more investment. Besides, second-hand ships become the preference

for shipping companies due to ship’s large tonnage capacity and shipyard industries in

Indonesia is not yet capable to handle offshore oil drilling equipments transportation.


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Iron – Steel Steel in Banten is also expected to be one of the main activities to support Sumatra Economic

Corridor growth, especially after Sunda Strait bridge construction. In terms of market potential,

steel industry has great economic opportunity considering Indonesia's per capita steel

consumption is only 29 kg/kapita. These figures are relatively low compared to 170 kg/capita as

world average consumption, although demand from the steel industry climbs quite good, mainly

due to demand from automotive, electronic, and infrastructure.

National Strategic Area Sunda Strait / KSN Selat Sunda Sunda Strait as a national strategic area will be developed with the construction of a bridge

connecting the island of Java and Sumatra. The bridge supports the development of the four

clusters in the area of Banten province, includes the Cilegon, Bojonegara, Maja as residential

area, and Tanjung Lesung as center for tourism. In addition, 3 regional clusters from Lampung

will be also developed, including Bandar Lampung, Metro, and Pringsewu (Ministry of Public

Works, 2012).

2.2.2 Main MP3EI Policies and Regulations

A brief summary of proposed policies and regulations for main economic activities for Sumatra

EC as stipulated by MP3EI. A number of planned regulations is aimed to enhance the

implementation of MP3EI projects development while several others are dedicated to control

and manage the economic activities, also to maintain and improve the supporting infrastructure

for Economi Corridors plan implementation. The regulation policies and regulations in MP3EI

are prepared based on the economic activities. The detail planned policy/regulation and

infrastructure can be seen in Appendix A.

2.2.3 Main Planned MP3EI Infrastructure

To support these main economic activities, the main infrastructure planned are Kualanamu

Airport, Kualatanjung Port, high grade highway (toll roads), Sunda Strait suspension bridge,

steam power plant (coal power) and telecommunication coverage. The biggest value in

infrastructure will be invested for road (IDR274.96billion), energy (IDR158.16billion), and railway

(IDR81,74billion). The main planned infrastructures are illustrated in figure below.


Figure 2.2 Main Planned Infrastructure (Coordinating Ministry for Economic Affairs, 2013)

2.3 Overview of Autonomous Provincial Planning

The MP3EI planned development projects for the Sumatra EC are to be implemented for all

province in Sumatra but mostly it will focused in North Sumatra, Riau, South Sumatra and

Lampung provinces and small part in Banten. Therefore, it also imperative to acquire

comprehensive information regarding the autonomous provincial plans, including the RPJPD

(Long-Term Regional Development Plans), RPJMD (Medium-Term Regional Development

Plans) and RTRWP (Provincial Spatial Plans). Considering the key components and priorities of

these provincial plans in the EC in further SEA analyses will help to identify potential conflict or

disharmony between the MP3EI planning within the corridor. To understand profoundly about

autonomous provincial planning status, the key information on the provincial planning relevant to

the MP3EI planned development would be a consideration.

Provincial Planning of Aceh The RPJMD’s Aceh 2012-2017 is focused on following 10 programs: good governance,

implementation sharia law, food security, poverty reduction, infrastructure, education, health,

optimization of natural resources, peace sustainability, environmental and natural hazards.

The RTRWP of Aceh is in development process and waits for an approval from Ministry of

Forestry regarding the forest cover changes. The RTRWP of Aceh consists of plan of

development areas and plan of protected areas.


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Provincial Planning of North Sumatra (Sumut) The RPJPD’s North Sumatra 2005-2025 has been legalized through The Provincial Regulation

No. 12/2008. The existing 2008-2013 RPJMD of North Sumatra will expire in 2013 and new

RPJMD North Sumatra 2013-2017 is currently being prepared, since the new governor was

elected at the beginning of 2013, the PRJMD shall be finalized by the end of 2013.

North Sumatra’s RTRWP 2013-2033 is also in preparation process and waits for an approval

from the Ministry of Forestry regarding the forest cover changes. From the documents received

from Bappeda it is obvious that the spatial plan of North Sumatra contains plan for development

areas and plan for protected areas. Plans for development areas consist of infrastructure

development, more specifically toll road as a part of the national policy in eastern part of the

North Sumatra, new palm oil plantations also in the eastern part of the province and industrial

estates around capitals of kabupaten/kotas. The protected areas´ plan consists of protected

forest, mangroves, nature reserves, and wildlife conservation area.

Provincial Planning of Riau The RPJPD’s Riau 2005-2025 has been legalized through the Provincial Regulation No. 9/2009.

The existing RPJMD of Riau 2009-2013 will expire in 2013. There will be a governor election at

the end of October 2013 and thus the government will be obliged to develop a new RPJMD

2013-2017 afterward.

The RTRWP of Riau is in developing process and waits for an approval from Ministry of Forestry

regarding the forest cover changes. The RTRWP of Riau consists of plan of development areas

and plan of protected areas.

Provincial Planning of Riau Islands The RPJMD of Riau Islands is valid for the period 2010-2015. The RPJMD consists of 5 year

development plan with budget allocation focused on economic equality, social welfare, basic

education, health, reduce un-employment, gender mainstreaming, agriculture, marine and

fisheries and infrastructure.

The RTRWP of Riau Islands is in developing process and waits for an approval from Ministry of

Forestry regarding the forest cover changes. The RTRWP of Riau Islands will consist of plan of

development areas and plan of protected areas.

Provincial Planning of Bengkulu The RPJPD’s Bengkulu 2005-2025 is legislated with Provincial Government Regulation No.

4/2008. The current RPJMD of Bengkulu applied for the timeframe of 2011-2015. The planning

document consists of 5 years development plan with budget allocation for infrastructure, poverty

reduction, social welfare, sustainable natural resources management and good governance.

The RTRWP (Provincial Spatial Plan) of Bengkulu was legislated with Provincial Government

Regulation No. 2/2012. It covers the spatial planning objectives and programs for cultivation

area and protected area. The spatial plan for cultivation area include the planned development

of toll road, power plant (coal power, hydropower, geothermal), production forest, agriculture,

fisheries, mining and industrial estate, while the protected area consists of protected forest,

upstream protected area, nature conservation, geology protected area and disaster vulnerability

area.


Provincial Planning of West Sumatra The current RPJMD of West Sumatra applied for the timeframe of 2010-2015 and was legislated

with Provincial Government Regulation No. 5/2011. The prioritised programs of the planning

document include education, health care, road and bridge infrastructure, housing, transportation,

environment and natural hazard mitigation, food security, energy and mineral resources, and

marine and fisheries.

The RTRWP of West Sumatra 2012-2032 was legislated with Provincial Government Regulation

No. 13/2012. It covers the spatial planning objectives and programs for cultivation area and

protected area. The spatial plan for cultivation area include the planned development of road

and toll road infrastructure, rail road, inter island transportation, production forest, agriculture,

fisheries, mining (coal, oil and gas) and tourism infrastructure. The spatial plan for protected

area includes the planned development of protected forest, nature conservation, cultural sites

and hazards vulnerability.

Provincial Planning of Jambi Jambi Long Term Development Plan applied for 20 years timeframe from 2005-2025, although

this document provided in Jambi government’s website, the legal status information is currently

unavailable. The current RPJMD of Jambi will be applied from 2010-2015 and was legislated

with Provincial Government Regulation No. 1/2011. The priorities of Jambi’s 5 year development

plan include public infrastructure, education, health, religion and culture, agriculture, sustainable

natural resource management and Good Governance.

The Spatial Plan (RTRWP) of Jambi province is currently under preparation and waiting for

technical approval from Ministry of Forestry regarding the forest cover changes. The RTRWP of

Jambi will cover the planning objectives for cultivation area and protected area. In 2010, an SEA

- facilitated by ESP2 and MoHA - was undertaken and applied for Jambi’s Provincial Spatial

Plan as part of the spatial plan preparation

Provincial Planning of South Sumatra The Long Term Development Plan of South Sumatra Province (RPJPD 2005-2025) was

legislated with Provincial Government Regulation No. 17/2007. The current Midterm

Development Plan for 2008-2013 has just finished and the new proposed RPJMD for 2013-2017

is undergoing preparation process and estimated to be finalised by the end of 2013.

The RTRWP of South Sumatra is currently undergoing preparation process and waiting for


South Sumatra will cover the planning objectives for cultivation area and protected area.

Provincial Planning of Bangka Belitung The Provincial Long Term Development Plan of Bangka Belitung (RPJPD 2005-2025) was

legislated with Provincial Government Regulation No. 13/2007. The current RPJMD of Bangka

Belitung will be applied for 5 years from 2012-2017. The prioritised sector of 5 year development

plan in Bangka Belitung include peace, education, good governance, infrastructure, job creation,

environment, legislation, and small and medium enterprise. An SEA for local development plans

was applied as part of the preparation of the RPJMD with the assistance and facilitation from

ESP2-DANIDA and MoHA.

The RTRWP of Bangka Belitung is currently undergoing finalisation process and still waiting for


Bangka Belitung will cover the spatial planning objectives for cultivation area and protected area

Provincial Planning of Lampung The RPJPD of Lampung Province for 2005-2025 was legislated with Provincial Government

Regulation No. 6/2007. The current RPJMD is to be applied for 5 years starting from 2010 to

2014. The priorities of 5 year development plan in Lampung include a strengthened regional


11

economic, infrastructure, education, health, social welfare, sciences, religion and culture, natural

resource management, law enforcement, and good governance.

The Provincial Spatial Plan of Lampung was legislated with Provincial Government Regulation

No. 1/2010. The spatial plan for cultivation & industrial area include the planned development of

road and Sumatra toll road network in east coast, rail road network, power plant (coal, hydro

power, geothermal), agriculture, plantation, mining, industry and housing. The protected area

spatial plan covers the protected forest, mangrove, nature conservation area and natural hazard

vulnerability area.

Provincial Planning of Banten The Long Term Development Plan of Banten Province (RPJPD 2005-2025) was legislated with

Provincial Government Regulation No. 1/2010. The current RPJMD of Banten Province is to be

applied for 5 years starting from 2012-2017 and was legislated with Provincial Government

Regulation No. 4/2012. The priorities of 5 year development plan in Banten include food

security, poverty alleviation, reduce unemployment, improving people welfare, improving human

resource capacity, economic equality and growth, infrastructure, environment and natural

resource management, good governance and development of strategic zones.

The Provincial Spatial Plan of Banten province outlines the spatial planning for 20 years

timeframe (RTRWP 2010-2030) was legislated with Provincial Government Regulation No.

2/2011. The spatial plan for cultivation and industrial area in the RTRWP consists of the planned

development of road and Jawa toll road network, airport, sea port, rail road network, power plant

(coal, nuclear, geothermal), agriculture, plantation, mining, industry and housing. Meanwhile, the

spatial plan for protected area consists of planned development of protected forest, mangrove,

nature conservation area, natural hazard vulnerability area, cultural heritage site,

2.4 Overview of Major On-going or ‘To-be-implemented’ Projects

Of the 10 provinces in Sumatra, only 6 provinces is included in Sumatra Economic Corridor.

Within that 6 provinces, only West Sumatra and Lampung have the legalized spatial plan

(RTRWP), while others needs an approval from Ministry of Forestry for forest covers changes.

Most of the projects which are on-going or were prioritised for development are found in the

Sumatra EC. There is no data provided about which projects are already initiated.

From initial review of the Spatial Plans of Lampung and West Sumatra, the major to-be-

implemented projects are only available in Lampung, while the West Sumatra the regional

projects are limited. The major projects in Lampung are:

• Traffic reduction programme on Lintas Tengah (center highway) and Lintas Timur (east

highway) by developing toll road network from Bakauheni – Babatan – Tegineneng

Terbanggi Besar as part of Sumatra Toll Roads Network and develop toll road connection to

Terbanggi besar – Menggala – Simpang Pematang;

• Development of road network connecting Lampung – Banten through Lampung-Banten

Bridge

• Military Airfield Astra Ksetra in Kabupaten Tulang Bawang as fighter training homebase

Indonesia Airforce

• Military Airfield Gatot Subroto in Kabupaten Way Kanan as fighter training homebase

Indonesia Airforce

• Special Airport to support plantation activities in Kabupaten Lampung Tengah, Lampung,

Timur dan, Tulang Bawang


• Special Airport Blimbing in Kabupaten Lampung Barat to support tourism sector

• Airport Pekon Seray in Kabupaten Lampung Barat for navigation purposes and natural

disaster readiness infrastructure.

• Hydropower plant in Way Besai and Batu Tegi

• Steampower plant in Kabupaten Lampung Selatan, Kabupaten Tulang Bawang, Kabupaten

Tanggamus, Kabupaten Lampung Tengah, dan Kabupaten Way Kanan;

• Geothermal power plant in Kabupaten Tanggamus, Kabupaten Lampung Tengah and

Kabupaten Lampung Selatan

• Diesel power plant in Pulau Sebesi, Tarahan, Teluk Betung, Metro, Tegineneng, Teluk

Padang, Bengkunat, Krui, Pugung Tampak, Simpang Pematang, and Wiralaga

• Strategic development area Bakaheuni as a gate of Selat Sunda Bridge in Sumatra

From the initial review of MP3EI in Sumatra EC, the major projects to be implemented as follow:

• Gold mining in South Tapanuli

• Zinc and lead mining and processing plant in forest area in Dairi

• Reclamation for fertilizer plant and port in Tanjung Carat

• Coal mining in forest area in Banyuasin and Muara Enim

• KSN Sunda Strait (suspension bridge and surrounding area)

• Sumatra toll road from Bakaheuni – Medan

Overview of Baseline Features in the Sumatra EC

13

3 Overview of Baseline Features in the Sumatra EC

This section outlines the strategic baseline features in Sumatra EC structured into the following

categories: Environmental Quality (includes Water, Air and Climate, Land and Soil); Ecosystem

(Biodiversity, Forests, Coastal degradation); Socio-Economic Aspects (Human health,

Livelihood, Industry and mining, Energy and waste) and Environmental Management. This

introductory analysis based on literature and elementary statistical data interpretation, focuses

on the strategic baseline categories and is aimed to assist the process of identification of key

issues relevant for the EC SEA. Further analytical activities, including GIS mapping, are

currently being undertaken within the scoping stage.

3.1 Environmental Quality

3.1.1 Water

The Sumatra EC is characterized by several major fresh water bodies, especially its rivers and

lakes, and a significant groundwater basin.

Presidential Instruction No. 1 Year 2009 on Accelerating the Implementation of Priority National

Development 2010, commissioned the Ministry of Environment to undertake the monitoring of

water quality in 13 national watersheds. Four of these priority watersheds are located in the

Sumatra EC.

Table 3.1 summarizes results of water quality monitoring from these priority watersheds,

represented by some parameters such as BOD, COD, DO, and others. These results indicate

that water quality in all four watersheds did not meet the targets established by the MoE for

these watersheds.

Table 3.1 Water quality in priority watershed in Sumatra

Source : PPE Sumatra, 2013

Water Pollution In 2012, the MoE monitored water quality in106 locations across Sumatra. Of these 106

locations, 85 (80%) were heavily polluted, 20 (18%) medium polluted and 1 (1%) regarded as

slightly polluted. The heavily polluted samples were located in Sungai Krueng in Aceh, Sungai

Deli in North Sumatra and Way Sekampung in Lampung.

No Name of River

Catchment

Area

(km2)

Main

River

Lenght

(km)

Location Status Target

1 Batanghari 44,492.50 775

Jambi (80.93%)

West Sumatra

(19.7%)

Lightly - Highly polluted

Class II-IV

Clean - Lightly polluted

Class I-III

2 Kampar 25,708.70 450

Riau (90.19%)

West Sumatra

(9,81%)


Class II-IV


Class I-III

3 Musi 55,029.80 750

Bengkulu (4.27%)

South Sumatra

(95.73%)


Class II-IV


Class I-III

4 Siak 12,180.80 345 Riau(100%)Highly polluted

Class II-IV


Class I-III


The pressure on water quality in Sumatra is reportedly caused by industrial waste, domestic

waste, agricultural waste, livestock waste, and mining activities. The main drivers of the water

quality is dependent on location. For example, illegal mining has a serious impact on water

quality in Bangka Belitung (SLHD Bangka Belitung, 2012) while agroindustry in Lampung

(SLHD Lampung Province, 2012), oil palm processing industry in Riau (SLHD Riau Province,

2011), domestic waste in Aceh and Jambi (PPE Sumatra, 2013) are the main drivers in those

provinces.

Coastal waters The quality of seawater is strongly influenced by the physical conditions (suspended substances

and temperature) and toxic chemicals substance (Hg, Cd, Pb, Cu) in the sea water. Laboratory

results for sea water quality based on Ministry of Environmental Decree No. 51/2004 indicates

that the sea water mostly has not been contaminated (SLHD Riau Province, 2012). However, in

terms of pollution level, the highest polluted parameters are turbidity and total ammonia (SLHD

West Sumatra, 2012). Potential sea water pollution sources in Sumatra are domestic waste from

coastal settlement as well as port industrial activities such as shipping or shipyard construction.

Groundwater The mutual support between surface water and groundwater for efficient and sustainable use is

described in Ulitization Guidelines of Water Resources Regulation, 06/PRT/M/2011 by Ministry

of Public Works. Although prioritizing surface water for activities is stated, groundwater is the

main raw water resources to meet the water demand in Sumatra. Groundwater overexploitation

is mentioned in several secondary literature, such as Lampung and Riau Islands Provincial

Environment Status. Although there is no tabular data for whole province is provided, some

regecies in West Sumatra have records for drinking water sources. In Sumatra, the projection of

drinking water demand increasingly by 100% in 15 years, from 66.000 m3 in 2010 into 113000

m3 in 2025. While the need of water in agricultural sectors estimated 110.200 m3/year.

Based on the Sumatra water balance projection study by Ministry of Public Works Water

Research Centre, PUSAIR, water crisis will not occur qualitatively noticing the island’s 16.125

m3/s surplus water availability in 2030. This huge potential number is not necessarily ensure the

availability of actual water balance, in fact of land’s ability to store water from year to year

continues to decrease due to forest loss. (PPE, 2013).

3.1.2 Air and Climate

Urban Air Pollution Air quality in Indonesian cities is influenced by population density, traffic, and economic activities

(e.g. shipping and industries). Some Provincial Environmental Status in the Sumatra Economic

Corridor stated that air quality in rural areas is generally above the standard, but densely

populated Sumatran cities such as Medan, Palembang, and Pekanbaru are facing problems

with decreasing air quality. World Health Organization (WHO) in 2011 metioned that Medan was

ranked as the most polluted Indonesian city, with 111 mg/m3 PM10 compared to the global

average particle pollution for Indonesian cities of approximately 71 mg/m3, and the

recommended quality standard for this parameter is 20 mg/m3 (Daily Press 2011). Factors such

as widespread use of low quality transportation fuels, rapid industrialisation, and power plants

are cited as contributors to the poor air quality by the WHO.

GHG Emissions The main sources of GHG emissions are land sectors (plantation, agriculture and forestry),

energy sector (energy, transportation and industry), and waste management. On the Business

as Usual scenario (BaU), it was predicted 76% increase of GHG emission in 2020 equivalent to

33,6 million ton CO2eq (DNPI, 2011).

Forest fires are a large contributor to air emissions in local/regional and international contexts. It

is estimated that 85% of all greenhouse gases from Indonesia are produced by land use


15

changes, for purposes such as plantation or agriculture. (Partohardjono et. al. 2011). Land and

forest fires are generally caused by human activities in land clearing to be used for plantations in

Sumatra (SLHD Riau Province). The effects are worsened by the effects of dry El Nino

conditions. El Niño events, which displace warm water into the eastern Pacific Ocean and

produce cool waters near Indonesia, exert their effect by suppressing the monsoon rains (Jeff

Tollefson, 2012).

Burning of forests, in particular peatlands, produces large quantities of air emissions such as

particulate matter, carbon dioxide (peat forests are huge carbon sinks) (Heil et. al. 2006).

Previous haze incidents have led to impacts at socio-economic receptors, e.g. transportation

delays, closure of schools, and health issues in the Sumatra EC as well as in neighbouring

countries. In the summer of 2013, forest fires in Sumatra led to hazardous levels of PM2.5 in

peninsula Malaysia, and Singapore, with levels reaching over 700 PSI in Johor Bahru, Malaysia

(Wee 2013). These fires were linked to fires in Sumatra, in particular the central and northern

parts of the island. Other significant haze incidents leading to drastically reduced air quality in

neighbouring nations occurred in 1997-1998, 2002, 2004 and 2006 in neighbouring countries

which include Thailand, Philippines and Brunei (Field et al 2009; Ketterings 1999).

Rainfall Sumatra climate characterized by high rainfall evenly distributed throughout the year, there is

almost no distinction between the months of wet and dry months. However, the rainfall varies by

location. The western area of Sumatra is generally wetter, with up to 6,000 mm annual rainfall,

while the driy area in the central fault valley will receive as much as 1,500 mm annual rainfall

(PPE, 2013).

3.1.3 Land and Soil

Sumatra is one of Indonesia's largest island with an area of 480,793.28 km2, length of 1,800 km

and the widest span of 400 km (PPE Sumatra, 2013). According to 2011 Indonesia Land Cover

map released by Ministry of Forestry, 42% of Sumatra covered by agriculture, mostly palm oil

plantation, rubber and rice field. Dry forest covers 21% of island, followed by bush as the third

largest land use.

Land use in the Sumatra EC is undergoing a rapid a rapid rate of change largely due to

coversion of forest cover into agricultural and mining areas. Data from the Land and Agro-

climate Research Center, Indonesian Agency for Agricultural Research and Development (2005)

showed that the total area of degraded land in Sumatra reached 4.8 million hectares. Related to

condition mentioned above, utilization of critical area which is quite extensive as less productive

agricultural areas could be a potential scenario for adding value to MP3EI results (Koh , PL and

Ghazoul, J: 2010).

Peatland The area of peatlands in Indonesia is estimated at 20.6 million ha, representing about 10.8

percent of Indonesia's land area. Approximately 7.2 million ha or 35% of peatland area in

Indonesia is located within the Sumatra. Most peatlands are still covered by forest and a habitat

for various species of fauna and flora . More importantly, peatlands store large amounts of

carbon, as well as water. (Wetlands, 2009).

On the island of Sumatra, the spread of peatlands generally found in the lowlands along the

eastern coast, which is in the province of Riau, South Sumatra, Jambi, North Sumatra and

Lampung (Wahyunto, et.al, 2005).

Peatlands damage in Sumatra is generally caused by land conversion to plantations and forest

fires. It was recorded that oil palm plantations have destroyed 70 percent peat in three districts

namely West Tanjung Jabung, East Tanjung Jabung, and Muaro Jambi (PPE Sumatra, 2013).


Peatland conversion will disrupt all functions of the peatland ecosystem. Drainage of peatlands

causes irreversible lowering of the surface (subsidence) as a consequence of peat shrinkage

and biological oxidation (later leads to loss of carbon stock) (Hooijer et al, 2012).

The rate of conversion of peat tends to increase rapidly, while for non-peat the rate is relatively

slower increase (WWF, 2008).

Karst Karts area in Sumatra stretching out from Aceh to Lampung. Sumatra plays one of the most

essential role for karst science development, especially geology, biology, hydrology, and

archeology (PPE Sumatra, 2013). Important karst in Sumatra is noted to be located in the

following areas:

1. Padang consists of several karst areas, such as 50-60 km2 karst between Tanjungsawah

and Desa Kasih and 10-15 km2

karst area in Padangpanjang as a continuation of Batur

Karst.

2. Payakumbuh has 300-400 km2 karst area with height variations between 500-600 m .

3. Sinamar - Kvantan - Takung riverine has 200 km2 karst area.

The most common utilisation of karst in the area is as the raw material for cement industries such as in the province of South Sumatra, West Sumatra and Aceh.

3.2 Ecosystems

3.2.1 Biodiversity

The Sumatra EC is part of Indonesia’s most bio-diverse regions containing the greatest number

of known mammals (210 species), 582 species of birds (14 of which are endemic), and 300

amphibians and reptile species (23% which are endemic to Sumatra) (Critical Ecosystem

Partnership Fund, 2001). Sumatra holds a biodiversity hotspot known as ‘Sundaland,’

connecting Asia and Australia (Critical Ecosystem Partnership Fund 2005).

Based on International Union for Conservation of Nature criteria, Sumatra has four critically endangered species, the Sumatran tiger (Panthera tigris Sumatrae), Sumatran elephant (Elephas maximus sumatrensis), Sumatran rhino (Dicerorhinus sumatrensis), and the Sumatran orangutan (Pongo abelii)(PPE Sumatra, 2013).

Species such as the Sumatran tigers, pygmy elephants, rhinos, sun bears and orangutans live

in the remaining forest habitats of Sumatra. It is estimated that approximately 400 tigers remain

in Sumatra and 210 elephants (Greenpeace 2013).

In terms of flora species, the Sumatra EC provides important habitat for orchids (Orchidaceae),

semar bags (Nepenthes), Meranti (Dipterocarpaceae), carrion flower (Amorphophallus titanum),

and patma giant (Rafflesia arnoldii) (PPE Sumatra, 2013).

The potential threats to Sumatran biodiversity are illegal logging, forest encroachment resulting

from construction of new access roads, mining activities and land and forest fires which are

mostly related to palm oil plantations (Critical Ecosystem Partnership Fund, 2001). Additional

threats result from conflict between humans and wildlife. A study by WWF (2011), showed a

rapid decline in the habitat of tigers elephant and orang-utan over the last 25 years animals

resulting in a rapid decline in abundance. For example the elephant population in Sumatra

declined by 87% in the 25 years to 2011.


17

3.2.2 Forests

Based on the Ministry of Environment’s Environmental Status report, approximately 37% of

Sumatra was covered by forest in 2007 (MOE, 2008). Sumatran forests consist of 22 types of

vegetation, some of them are mossy forests, mountain forests, ground limestone mountain

forests, wet lowland forests, peat swamp forests, and others (Whitten, 1984). Ministry of

Forestry classifies forests based on its function, such as production forests (permanent

production forest and limited production), protected forests, and conservation forest (nature

reserves and conservation areas).

Forest Cover Loss Sumatra has very rapid rate of deforestation, more than two-thirds of the forest, especially in the

lowlands over the last 25 years. Analysis of natural forest cover 1985 -2008 indicates that

deforestation in Sumatra reached a rate of 500,000 hectares per year (PPE Sumatra, 2013).

Initial removal of forestlands has occurred around coastal areas and around river areas

(Partohardjono et al 2005). The provinces of North Sumatra, Aceh, West Sumatra, Bengkulu

and Lampung were most affected by this initial removal.

Extensive untouched forest exists within Aceh, in part because of the area’s past conflicts,

natural disasters, and in part because of the hilly topography, however, there have been

discussions on converting protected areas to production forests for economic gain (Schonhardt

2013).

The amount of deforestation in the last three years occurs because of the expansion of mining

area, oil palm plantations, infrastructure development, spatial change, and forest fires. Based on

deforestation maps issued by the Ministry of Forestry, the rate of deforestation between 2006-

2009 period reached to 314,298 ha/year and amounted 154,254 ha/year between 2009-2011.

These data shows that the rate of deforestation in Sumatra has decreased.

Deforestation is a threat that even occurs in protected forest areas, for example certain

companies still have permits to operate mines in protected areas (MOE 2007; MOE 2008).

Mining and other logging permits are offered by province, which may conflict with nationally

designated protected areas.

For example, Sumatran tiger habitat in protected areas such as Tesso Nilo National Park has

modified via encroachment for illegal palm oil or paper production (Greenpeace 2013). Despite

the protection offered by the law, enforcement and upkeep of these conservation areas is poor

(Greenpeace 2013). In 2011, it is estimated that 10% of all remaining forested tiger habitat in the

Sumatra EC (approximately 1 million hectares) remained at risk of clearance in pulp and oil

palm concessions (Greenpeace 2013).

3.2.3 Coastal Areas

Coastal Habitat Marine areas surrounding Sumatra are characterised by extensive areas of seagrass,

mangrove, and coral reef habitats (Tony Whitten, 1997). Along the eastern coast of Sumatra,

and the coasts along the plains in western Sumatra mangroves are the predominant habitat type

as a result of the significant sediment loads coming out of Sumatra’s major river systems (Tony

Whitten, 1997).

Fringing reefs and seagrass beds are found around Batam and within the Riau Archipelago as

well as the southern Belitung Island. Corals in the north, around Aceh and surrounding islands

are considered well-developed fringing reefs.

Mangrove forests in Sumatra have been extensively degraded in eastern Sumatra, converted

into aquaculture and agricultural areas such as oil palm (Partohardjono et al 2011). Similarly,


seagrass ecosystems area also threatened by coastal exploitation using potassium cyanide and

disposal of industrial and domestic waste. The seagrass ecosystem is highly dependent on

human activities on land, that are usually influenced by the local culture (SLHD Riau Islands,

2012).

Significant problems in coastal areas in Sumatra exist as a result of coastal ecosystem

degradation (PPE Sumatra, 2013).

3.3 Social and Economic Aspects

3.3.1 Human Health

Life Expectancy The average life expectancy in Sumatra is similar to the national average which is 70.76 years

old, although some provinces indicate smaller number (CIA World Factbook, 2011). The

provinces of Aceh, Bangka Belitung, and Jambi had life expectancy rates lower than the

average.

Communicable Diseases The prevalence of Pulmonary TB in Sumatra is high especially in North Sumatra, while almost

all of the remaining provinces had prevalence rates above the national average (Ministry of

Health 2011).

The number of reported cases for other communicable diseases is detailed in Table 3.2.

Table 3.2 Health cases in Sumatra

Source : Ministry of Health, 2011

Malaria in the Sumatra EC is widespread predominantly across the east coast area. The highest

rates of malaria cases are in Bangka Belitung with rate of 99,1 per mil and Jambi with rate of

52,2 per mil, higher than national average of 22,9 per mil.

According to the data of HIV/AIDS cases in 2010 released by the Directorate General of

Disease Control and Environmental Health - Ministry of Health, the greatest absolute number of

HIV/AIDS patients in Sumatra are mostly in North Sumatra Province (507 cases), followed by

Riau (477 cases) and West Sumatra (410 cases). However, based on the cases rate (per

100,000 population), the highest cases rate is in Riau Islands (24.96) and then Bangka Belitung

(11.65). Both provinces are above the national cases rate (10.46) while other provinces below

the national case rate.

Province

Aceh 1.573 31 31913 121 359 2.359 0 6 693

North Sumatra 4.697 1347 1258 37 163 141 0 0 476

West Sumatra 2.813 212 51840 13 65 274 0 1 964

Riau 1.563 337 9161 44 151 532 0 0 798

Jambi 254 86 40191 4 59 257 0 4 510

South Sumatra 1.854 226 114272 20 200 210 5 7 872

Bengkulu 260 55 59016 2 9 94 0 1 219

Lampung 1.862 93 27947 24 87 74 1 12 1.447

Bangka Belitung 349 85 63978 6 27 207 0 2 72

Riau Islands 1.828 743 17151 3 7 31 0 0 533

Number of Cases, 2010

Tetanus

Neonatorum

Dengue

FeverHIV Malaria

Leprosy

PB

Leprosy

MBFilariasis Diphtheria Pertussis


19

The national index of health service is 80,7%. The availability of health services in Sumatra

province varies from 62% in Bengkulu to 90,5 % population in Riau Islands. From 10 provinces

in Sumatra, the province with health services index higher than national index are Aceh, West

Sumatra, Jambi and Riau Islands.

The national index of access to water is 67,5% of households, while in Sumatra access to water

is vary from 46,1% to 73,9% of households. Riau Islands is the only province has exceeded the

national index, while others are below the national index.1

3.3.2 Livelihood

Livelihood In general the major livelihoods in the Sumatra Economic Corridor include employment in the

oil palm, rubber and coal industries. Agriculture and fisheries classification is the main source of

livelihoods for local residents, followed by Community Services, then Tourism and Product

Sales.

Significant income differences in the Sumatra EC exist, both between urban and rural areas and

between provinces in the corridor. This regional disparity can be seen from the provincial

distribution of GRDP which indicates an uneven distribution of poverty within Sumatra with the

poorest areas found in the north and the south of the island, as well as along the south-east

coast of Sumatra bordering Bengkulu. On the other hand, the percentage of the population living

below the poverty line is less around urban areas such as Medan, Pandang, Pekanbaru, and

Palembang (World Food Program 2013).

Natural Disaster Preparedness The Sumatra Fault which stretches 1650 kilometers from Aceh to Lampung along the Bukit

Barisan, and continuous along 300 km south of Java is one of the most active fault in Indonesia

(Rahmadi, E. et al. 2006). Sumatra fault and active volcanoes are inter-related, so Sumatra is

not only prone to earthquake, but also the other disasters, such as volcanic eruptions and

tsunamis. Other catastrophic disasters in Sumatra are landslide caused by mining activities and

flooding due to aggresive illegal logging as well as disposal domestic waste in river.

The Tsunami disaster that occurred on 26 December 2004 in Aceh province, caused significant

number of deaths and significantly impacted on livelihoods. The impact of the tsunami not only

in coastal areas but also for all economic activities.

3.3.3 Industry and Mining

A variety of industries are found in the Sumatra EC, such as paper processing, mining (e.g.

bauxite and tin), oil extraction and production, and palm oil processing facilities. The forests of

the EC are the main source of pulp for paper industries, for example, Asia-Pacific Resources

International Ltd and Asia Pulp and Paper (APP). APP has been criticised by a wide range of

NGOs including Greenpeace on rainforest exploitation (Greenpeace 2013).

Development of industral areas in the EC has reduced unemployment and poverty in the

Sumatra EC, especially in Jambi which has the provincial highest year-on-year industrial growth

rate in Sumatra. On the other hand, industrial growth also cause environment pressure due to

the negative impact of the waste (liquid, solid, and hazardous materials).

In terms of mining, Sumatra is known as the "World's Tin Belt”, has land and sea areas

containing abundant reserves of tin, especially Bangka Belitung islands which are the biggest tin

1 Riset Kesehatan Dasar 2010. Balitbang Kemenkes.


producer in the world. Other mining products are bauxite, iron ore, gold, oil and gas in northen

and southern Sumatra, and coal in West Sumatra.

Mining sector contributes huge benefit in terms of economic aspect while at the same time

polluting water and air and creating new costs for managing the surrounding environment.

Rehabilitation and conservation of post-mining areas are rarely done by mining companies in

Sumatra.

Comparatively other types of mining operations in Sumatra such as sand mining in Bengkulu,

coal mining, and gold mining are smaller than the paper and palm oil and tin mining industries

(Akbar 2006; Bland 2013). However tensions between the mining operator and the local

communities arose after it was reported that the Martabe gold mining company would dispose of

wastes into a river in Northern Sumatra (Bland 2013). In general a trend of disputes over

handling of land, administration, resources and wastes are becoming more commonplace.

3.3.4 Energy and Waste

Oil, natural gas, coal, geothermal, and biomass are the main source of energy in Southern

Sumatra (KEDSAM 2010), but hydropower is the most common energy source in other

provinces in the EC.

The overall waste generated in Sumatra in 2008 is provided in Table 3.3. Domestic waste is

handled by dump truck to landfills in urban area and backfilled, whereas it is usually burnt and

backfilled in rural area. Annual total waste for Sumatra is 8.7 Mton with approximately 0.48 kg

domestic waste is generated by a person daily. According to PPE Sumatra, only 4.13 Mtons or

less than half of the total waste is collected in 2008.

Table 3.3 Waste generation statistics in Sumatra

Region Population

Million

Total Waste

Generation

Mtons/yr

Waste Gen

per person

kg/day

Population

being

served

Million

Actual

waste

Collection

Mtons/yr

Non

collected

Waste Gen

Mtons/yr

Sumatra 49,3 8,7 0,48 23,4 4,13 4,57

Source: PPE Sumatra, 2013

Preliminary Overview of the Potential Key Issues for Sumatra EC

21

4 Preliminary Overview of the Potential Key Issues for Sumatra EC

The following section summarises the potential strategic issues related to the Sumatra EC.

These issues are garnered via two different methods

• Examination of the baseline features / information at the pre-scoping stage described in

Section 3

• Consultations with stakeholders through the pre-scoping workshop and follow-up meetings

It should be noted that over the course of the SEA process, other issues may become apparent,

and vice versa some issues might be determined as irrelevant. Therefore further exploration and

detailed analysis of the likely key strategic issues and topics will be undertaken throughout the

SEA process.

Generally, it is apparent that all urban areas in Sumatra EC are especially sensitive to

environmental quality issues due to improper disposal of wastes, rapid industrialisation and

utilisation of cheap transportation fuels. The remaining habitats/conservation areas face land

use pressures.

4.1 Deforestation / Degradation of Forests Functions

Uneven protection of the high and the lower elevation habitats is one such issue apparent from

the baseline. Coupled with high rates of deforestation and regional/provincial permitting for

conservation areas make it difficult to care for these remaining habitats and maintain them at a

self-sufficient level. Deforestation in Sumatra mainly caused by expansion of mining area, oil

palm plantation, infrastructure development, spatial change and forest fire. Illegal mining activities

for oil, gold, tin and coal are present across the EC and there are further difficulties in reclamation of ex-

mining sites.

Table 4.1 Potential forest issues

Specific topics, concerns and

problems Locations

Information Needed for

Supporting the Issues Data Source

High rate of deforestation and

forest degradation All provinces

Information regarding

forest encroachment Forestry Agency

Local forest use often authorised

inconsistently with national

forest law

All provinces Information regarding

forest encroachment Forestry Agency

Conflict of forest delineation All provinces Information regarding

forest delineation conflict Forestry Agency


4.2 Human Health Risks

Strides have been made in terms of human health in Indonesia, especially in terms of maternal

mortality rates. However, remaining issues related to human health are discussed below.

Table 4.2 Potential human health issues

Specific topics,

concerns and

problems

Locations Information Needed for Supporting

the Issues Data Source

High incidence of

infectious

diseases (TBC,

malaria, dengue)

TBC (North

Sumatra)

Malaria in East

Coast of Sumatra

(Bangka Belitung,

Jambi, Riau Island,

South Sumatra,

Lampung, Aceh)

Dengue in

metropolitan area:

Medan, Padang,

Palembang,

Bandar Lampung

Number of TBC cases

Number of death/incidence of malaria

and other major infectious diseases

prevalence and estimated geographic

area

Number of dengue cases

Health Service

Agencies

High incidence of

emerging

diseases (AIDS)

Highest number of

cases reported in

North Sumatra,

Riau, and West

Sumatra

More recent HIV/AIDS data by

province

Health Service

Agencies

Environmental

conditions

negatively

affecting human

health – air

pollution, noise

In metropolitan

area and east

coast of Sumatra

Air pollution regarding the

industry/transportation/bush/forest/peat

fire in plantation area in east coast of

Sumatra

Environmental

Agencies

Insufficient water

supply

infrastructure

(both in urban and

rural areas)

In metropolitan

area in all province

Water resources and water

infrastructure Public Works

Poor access to

health services in

remote areas

In all provinces in

the mountainous

area

Health service index data, Availability

of health services – no. of doctors, no.

of hospital beds / per capita

Health Service

Agencies

High number of

population living

in disaster-prone

areas

All province in west

coast (Aceh, North

Sumatra, West

Sumatra,

Bengkulu,

Lampung)

Population living in disaster-prone

areas BPBD, BPS


23

Specific topics,

concerns and

problems

Locations Information Needed for Supporting

the Issues Data Source

High number of

population in a

potential risk as a

result of climate

change

All provinces in

coastal area,

mountainous area

and lowland area

Estimated risks from sea level rise and

flooding risks from land subsidence in

the coastal areas BPBD, BPS

4.3 Livelihood opportunities

As noted in the baseline section, there are income discrepancies between urban and rural

populations and conflicting interests between economic development (e.g. land use conversion)

and conservation goals. The majority of Sumatran livelihoods are met through agriculture.

Table 4.3 Potential livelihood issues


problems Locations



High number of social conflicts

involving indigenous

communities – especially in

case of mining and palm oil

plantations development

All provinces, mining

areas in North

Sumatra, West

Sumatra, Bangka

Belitung

Social conflict cases and

its spatial distribution due

to industrial development

(mining, plantation)/land

acquisition of customary

territories/forests

Directorate

General of

Kesatuan

Bangsa and

Politic –

Ministry of

Home Affairs,

HUMA

High poverty rate

Aceh, North

Sumatra, South

Sumatra, Bengkulu,

Lampung

Trend of poverty rate data BPS

Lack of employment

opportunities All provinces Job opportunity data BPS

Rapid urbanisation Batam, Riau Urbanisation data for all

provinces and urban area BPS


4.4 Land and Soil Degradation

Land use conversion for large-scale plantations and mining operations are apparent in the

review of the baseline data. Many of these developments have been focused on the lower-lying

elevations. This land use conversion threatens a huge peatland area found in the lowlands

along the eastern coast. Peatland conversion will disrupt all functions of the peatland

ecosystem.

Table 4.4 Potential land and soil issues

Specific topics,

concerns and

problems

Locations Information Needed for


Increasing rate of

land conversion to

agriculture

All provinces, especially

North Sumatra, Riau,

Jambi, South Sumatra,

Lampung

Plantation area Agriculture Agency

High rate of land

degradation by

industry and mining

All provinces with mining

concession Mining concessions

Public Works,

ESDM

Increasing risk of

land subsidence on

peatlands area

Lowlands along the

eastern coast

Agriculture/Plantation on

Peatlands area Agriculture Agency

The potential

damage to karst

ecosystems due to

the activity of

limestone mining

South Sumatra, West

Sumatra, and Aceh

Cement industries

location and production

Environmental

Agency, Industrial

Agency

4.5 Water and Air Pollution

The Sumatra EC has the most extensive groundwater basin in Indonesia. However these

resources are threatened by industrial discharges, agricultural run-off, land-use conversion and

mining activities, as well as improper disposal of household waste. Growing population and

inadequate sewage system also introduces further stresses on potable water availability.

Conversion of lands e.g. mangrove habitats to shrimp ponds or slash-and burn fires and

developments in proximity of protected catchments, also further threatens water resources in

Sumatra.

Urban areas of Sumatra had some of the worst air quality in all of Indonesia and the world.

Factors such as heavy use of poor quality transport fuels and industries are behind some of the

poor urban air quality. In recent years, implementation of fuel standards (e.g. reduction in lead

concentration) has slowly helped to reduce air pollutant levels, however.

Rural areas, however, are also not spared from these, as forest fires result in extremely poor air

quality, especially during the dry seasons when farmers remove peatland for palm oil plantations

via burning. As previously stated these forest fires are responsible for particulate matter and

GHG emissions.


25

Table 4.5 Potential water and air quality issues

Specific topics,

concerns and

problems



Heavy freshwater and

marine pollution

Metropolitan area in all

provinces

Water pollution status

and distribution

Environmental

Agency

Insufficient waste

water management

systems

In all provinces Water pollution, Waste

water plant

Public Works,

Environmental

Agency

The high

sedimentation in

estuaries and port

Eastern coast Sedimentation rate in

estuaries and port

Environmental

Agency

Air pollution

threatening public

health and

ecosystems

Medan and all province

with plantation and forest

changes

• Air quality data Environmental

Agency

High GHG emissions

from plantation and

deforestation

All provinces with

plantation and forest

changes

Strategy and Action Plan

for National Urban Air

Quality Improvement

(NSAP) and Regional

(LSAP) through Urban

Air Quality Improvement

Sector Development

Program for five urban

areas

Environmental

Agency

Increasing GHG

emissions from

energy, industry,

transport and waste

sector

Metropolitan area in all

provinces

Environmental

Agency

Inefficient energy use

and growing energy

demand

Over demand of electricity

in all provinces.

Energy demand

Indonesia Power

(PLN)

Increasing production

of municipal waste

In all capital city of

provinces faces this

problem

Waste generation and

waste collection

Environmental

Agency

Increasing production

of industrial waste

In industrial are around

capital city in all provinces

Waste treatment and

processing

Environmental

Agency


Specific topics,

concerns and

problems



Low capacities for

waste management

All provinces do not have

sufficient waste

management.

Controlled and

uncontrolled landfill

sites, including

information on small

scale waste burning

practices

Environmental

Agency

4.6 Loss of Biodiversity

The high rate of deforestation and legal land conversion for agriculture, plantation and mining

has increased the loss of biodiversity in the Sumatra EC. The remaining habitat is fragmented

which leads to conflicts between humans and wild life.

Table 4.6 Potential biodiversity issues

Specific topics, concerns

and problems Locations


Supporting the Issues

Data

Source

Habitat fragmentation

All provinces,

mostly in Riau,

Jambi and West

Sumatra

(RIMBA)

Information regarding the invasive

species threats the existence of

endemic species (location, causes)

Distribution of protected species

(endangered and critically

endangered)

Forestry

Agency,

BKSDA,

WWF

High number of threatened

species Undefined

Cases of human-wildlife conflict

(location, causes) BKSDA

High vulnerability of

biodiversity to climate change Undefined

Information on climate change

effects on biodiversity

BKSDA,

Forestry

research

and

development

agency

Ecosystems over-exploitation

(including poaching, illegal

trade of flora and fauna,

human-wildlife conflict)

Poaching in

other protected

areas of

Sumatra

Information regarding poaching,

illegal trade of flora and fauna and

human wildlife conflict

BKSDA,

WWF


27

4.7 Coastal Degradation

The last few years there has been a high damage of mangrove habitat along the coastline of

eastern Sumatra that were gradually converted into fisheries and agricultural purposes. Coastal

exploitation also thretens seagrass, coral reef, and causes coastal erosion that lead to the

damage of coastal biodiversity.

Table 4.7 Potential coastal area issues


problems Locations

Information Needed

for Supporting the

Issues

Data Source

High level of coastal habitat degradation

(including mangroves and coral reefs)

resulting from coastal development,

water pollution (including sedimentation),

and mining (especially offshore)

Coast of Kep.

Bangka

Belitung, South

Sumatra, Riau

Coral reefs and

mangrove condition

Degraded coastal

areas

Marine and

Fishery Service

Agency,

Environmental

Agency

High level of coastal erosion

West coast of

Sumatra and

Bangka

Belitung

Rate of coastal

abrasion and

degradation

Marine and

Fishery Service

Agency,

Environmental

Agency

4.8 Environmental Management

Environmental management is arranged by Law No. 32 Year 2009 about Environmental

Protection and Management and Government Regulation No. 38 Year 2007 about Coordination

between Government , Provincial Government and Regency Government. Badan Lingkungan

Hidup Daerah (BLHD) is the only executor of coordinating the technical guidance for

environmental management operational, functional, and technical implementation in Provincial

level (South Sulawesi, 2011). In addition, Pusat Pengelolaan Ekoregion (PPE) also implement

duties and functions of the Ministry of Environment. PPE Sumatra covers environmental

management of Aceh, North Sumatra, West Sumatra, Riau, Riau Islands, Jambi, Bengkulu,

South Sumatra, Bangka – Belitung Island, and Lampung.

Main programs stated from provincial environmental status by BLH are environmental

rehabilitation, monitoring environmental documents, environmental law enforcement, increased

public participation in environmental protection (members of communities, universities,

companies and municipal authorities) (SLHD Riau, 2012).

Monitoring environmental quality in Sumatra, especially in water pollution control is executed

according to Capacity Assessment and Environmental Carrying Capacity. Lakes zoning has

been done in to maintain water quality. Primary Presidential Decree Number 10/2011

concerning two-year moratorium on conversion has become a logging concession of nearly half

of the total forest cover in Indonesia is a strategic momentum in the context of a world

movement for the carbon emissions and greenhouse gases reduction (REDD+, 2013). However

in karst region, Government Regulation No. 28/2008 mentioned on the karst area as a geology

protected area without further explotation limitation.

In term of preserving biodiversity, Intelligence and Law Enforcement Unit (ILEU) is one of the

responsible team for illegal wildlife trading. WWF released 25 years data about rapid decreasing

number of wildlife habitat caused extreme reduction of endemic species population. This causes

local government also included communities living around the forest to press the high rate of

forest. In coastal management, mangrove replanting is conducted for damaged coastal area due

to interference of high abrasion as an implementation of the Presidential Law No. 27/ 2007.


Mining activities as one of the main livelihood in Sumatra is controlled by Law of Republic

Indoneisa No. 4/2009 on Mineral and Coal Mining for supervise mining permit for environmental

protection. Industry as another economic activity is controlled by Law of Republic Indoneisa No.

3/2010 about Water Quality Standard for Industrial Area. MP3EI Sumatra creates new

opportunities in both aspects mentioned above, but also challenge in environmental

management in Sumatra. Peta Jalan Menuju Penyelamatan Ekosistem Sumatra (Ecosystem

Rescue Sumatra Road Map) is part of the environmental management efforts for this project.

Despite commitments to preserve remaining forests, the provincial and district level

governments also have developed spatial plans which may conflict with the developments as

outlined in the nation- and island-wide spatial plans (Barano et. al. 2010). Theoretically, these

spatial plans should consider the ecosystem functions and services of the area, and how they

support the well-being and livelihoods of the surrounding communities.

Sumatra Governor Forum in 2010 has declared the roadmap of ecosystem Sumatra as a policy

guidance to protect the wildlife ecosystem sustainable. This included providing a corridor for

wildlife migration in the Sumatra Island including elephant and tiger. This roadmap have been

facing a challenges since the government planned to build a new infrastructure corridor which

adjacent the wildlife corridor.

Poor environmental management practice, lack of environmental regulation and low

enforcement of existing laws are the key structural nation-wide problems. In Sumatra there is

still poor enforcement of Indonesian environmental legislation and poor or absent institutional

and human resources management capacity.

Table 4.8 Potential environmental management issues

Specific topics,

concerns and

problems

Locations

Information Needed

for Supporting the

Issues

Data Source

High number of

environmental

conflicts

In mining concession all

provinces mostly on gold

and coal

Environmental conflicts

Forestry Service

Agency, Mining

Agency,

Environmental Agency

Weak coordination of

planning systems

Cross-sectoral

coordination in all

provinces

Planning document Planning Agency,


Insufficient quality of

SEA and EIA

In all provinces and

districts/cities

Previous or on-going

EIAs (AMDAL) for

important major

projects and Planning,

Policy and Activity

SEA in province level

Environmental

Agency, Planning

Agency

Lack of proper coastal

management

At all coastal area in all

provinces

Coastal zone

management plans

Marine and Fishery

Service Agency,


Difficulties in protected

areas´ management All provinces

Master Plan and

Action Plan of

conservation area

Forestry Service

Agency, BKSDA,

National Park,


Low level of

environmental

compliance

enforcement

In all provinces and

districts/cities Environmental Agency

Main Conclusions and Preliminary Recommendations Resulting from Pre-scoping

29

5 Main Conclusions and Preliminary Recommendations Resulting from Pre-scoping

Based on the preliminary overview of the baseline conditions and issues identified for further

SEA analyses, this section highlights likely risks and opportunities to be considered within the

planning process and formulates initial policy recommendations.

5.1 Identified Risks and Opportunities

Estimated Risks/Impacts

• Conflicts between industrial operation, especially plantation and mining, with local

communities

• Illegal mining activities.

• Cross sectoral conflict (mining vs plantation vs forest)

• Conflict in land use between national and provinces.

• High protection of higher-elevation parks and low-level to no protection of remaining low-

elevation habitats

• Decreased air and water quality due to rapid industrialisation and related items

• Significant air quality impacts and GHG emissions from burning of forests (illegal), and / or

suitable cost-effective alternatives

• Resulting soil run off and erosion from land exposed after forest fires

• Increased land subsidence due to land conversion to plantation on peatland

• Fragmentation of remaining habitats due to illegal fires.

• Threats to biodiversity due to encroachment and reduced resources.

• Illegal poaching and hunting of Sumatran wildlife

• Improper disposal of wastes in both rural and urbanised communities and inadequate

sewage systems

• Coastal zone vulnerability to natural disasters (e.g. earthquakes, tsunami and flooding)

• Rapid land conversion, especially in lower-elevations

Management Issues

• Illegal mining, logging and forest fires via lack of enforcement of environmental legislation

• Lack of waste water treatment plants and waste management systems

• Inconsistent permitting procedures (e.g. obtained at the provincial level) and issuance of

production permits in a nationally-designated conservation area


5.2 Initial Policy Recommendations

• Improving financing (fiscal) policy for environmentally friendly infrastructure development,

public services facilities and social protection for the poor/weak communities.

• Introduce systematic programme of compensations e.g. in form of investments to public

infrastructure and services for communities affected by envisaged MP3EI investments

• Implement institutional measures to improve coordination between the central Government

and provincial governments regarding land use and conservation areas (permitting

procedures related to mining, palm oil and forestry sectors).

• Strengthening the legal framework and law enforcement to restore the function of

conservation and protected areas

• Ensuring that new proposed development areas (production) are not harming the important

ecosystem, biodiversity and local culture/heritages.

• Low use of innovative technologies and methods in industry (low emission/low waste

technologies etc.

• Application of best available techniques in the various industrial sectors

• Construction and development in areas located along the seismic fault lines should be

accompanied with complete and prepared hazard management and contingency plan, and

proper communication of these plans to the public and decision-makers.

APPENDICES

APPENDIX A – MP3EI Planning Informat ion in

Sumatra Economic Corr idor

MP3EI Planning Information in Sumatra Economic Corridor

A-1

A MP3EI Planning Information in Sumatra Economic Corridor

A.1 List of Economic Development Projects

No Project Name Investment Value (IDR

Billion) Developers

Starting Period

End Period

KPI

Main Economic Activities – Palm Oil

1 Industrial Area Development Project Sei Mangkei (KISMK)

51 SOE 2008 2010 KPI Sei Mangkei,

North Sumatra

2 Industrial Development of Palm Kernel Oil with capacity 400 ton/day


North Sumatra

3 Development to increase Palm Kernel Shell from 30 ton/ hour to 75 ton/hour


North Sumatra

4 NPK (Nitrogen, Phosphorus and Potassium) Factory (100.000 ton)

537 Private 2012 2015 KPI Sei Mangkei,

North Sumatra

5 Oleochemical Plant Development 2045 Private 2011 2014 KPI Sei Mangkei,

North Sumatra

6 Oleochemical Plant Development dan Pure Palm Oil (PPO)


North Sumatra

7 Fame Fractionation Plant 1 234 Private 2011 2013 KPI Dumai, Riau

8 Biodiesel Plant 4 154 Private 2011 2013 KPI Dumai, Riau

9 Oleochemical Phase 2 378 Private 2011 2012 KPI Dumai, Riau

10 Palm Oil Storage Tanks 36 Private 2011 2012 KPI Dumai, Riau

11 Palm Kernel Plant Upgrade 27 Private 2011 2013 KPI Dumai, Riau

12 Refinery Plan 1 & 2 Upgrade 21 Private 2011 2013 KPI Dumai, Riau

13 Spenth Earth Extraction Plant 29 Private 2011 2013 KPI Dumai, Riau

14 HSD Oil Storage Tanks 41 Private 2011 2012 KPI Dumai, Riau

15 Rock Glinding Plant 31 Private 2011 2012 KPI Dumai, Riau

16

The Basic Organic Chemical Industry that is sourced from Agricultural (Glycerine, Palm Fatty Acid Destilate, RBD Palm Oil, RBD Palm Olein, RBD Palm Stearin, Biodiesel) -> Basic Organic Chemical Industry that is sourced from Agricultural Products

666 Private 2010 KPI Dumai, Riau

A-2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03


Billion) Developers

Starting Period

End Period

KPI

17

Palm oil manufacturers, edible oil, vegetable and animal fats, and other organic basic chemicals derived from agricultural products and wholesale trade -> Palm Oil Manufacturers sourced from agricultural products and wholesale trade

2597 Private 2010 2013 KPI Dumai, Riau

18 Oil Palm plantations and vegetable crude oil industries (edible oil) at Kab. Musi Banyuasin

137 Private

KPI Tanjung Api-Api - Tanjung Carat, South

Sumatra

19 Oil Palm plantations and vegetable crude oil industries (edible oil) at Kab. Musi Banyuasin

137 Private


Sumatra

20 Technopolitan development area at Pelalawan

46336 Mix 2012 2014 KPI Pelalawan,

Riau

Main Economic Activities - Oil and Gas

1 Open Access development level 1 RU II Dumai

380 SOE KPI Dumai, Riau

2 Fluidized Chatalitic Cracking Unit at Refinery Unit III Plaju to optimize refinery

1280 SOE

3

Revitalization and relocation of the oil pipeline Tempino-Plaju to improve the reliability of transportation of crude oil (267 km) Validation Pertamina: 265 km

-850 SOE

4 Construction of NGL Plant in South Sumatra, Prabumulih

1790 SOE KPI Prabumulih, South Sumatra

5 Construction of Pressurized LPG terminal 5,000 MT in Lampung Kap. 2 MTPA

200 SOE

KPI Bandar Lampung - East

Lampung, Lampung

6 Construction of FSRU in Lampung (Labuhan Maringgai)

929 SOE 2012 2014

KPI Bandar Lampung - East

Lampung, Lampung

Main Economic Activities - Coal

1 Coal liquefaction of 1 million tons of liquid product/year

12600 Private 2011 2015


Sumatra


A-3


Billion) Developers

Starting Period

End Period

KPI

2 Cluster development project of NPK compound fertilizer (capacity of 1 million ton / yr)

2700 SOE 2012 2017


Sumatra

3 Coal mine (40 million tons per year) 6250 Private 2006 2039 KPI Muaraenim - Pendopo, South

Sumatra

4 Pendopo Coal Up Grading Capacity 5 million tons per year

9000 Private 2011 2019 KPI Muaraenim - Pendopo, South

Sumatra

5 Pendopo Coal Gasification, Coal to SNG


Sumatra

6 Pendopo Coal Gasification, Coal to Propylene


Sumatra

7

Coal Production Enhancement Project in Tanjung Enim in stages from 12 million tons/year to > 80 Million tons/year


Sumatra

8 Proyek Pendopo Integrated Industrial Park (PIIP) sebagai Special Economic Zones


Sumatra

9

Revitalization of fertilizer plant (construction of Pusri 2B plant) with the capacity of 2000 MTPD of ammonia and 2750 MTPD of urea -> Revitalization of fertilizer plant with capacity of 2000 MTPD of ammonia and 2750 MTPD of urea

6247 SOE 2008 2015 KPI Palembang, South Sumatra

Main Economic Activities - Steel

1 Steel Industry Development Project 50600 SOE -Private

2011 2013 KPI Steel Cilegon,

Banten

2 Revitalization Direct Reduction Plant 736 SOE 2008 2012 KPI Steel Cilegon,

Banten

3 Construction of Blast Furnace Factory 5413 SOE 2010 2014 KPI Steel Cilegon,

Banten

4 Industry for prefabricated steel materials for heavy construction buildings

619 Private KPI Steel Cilegon,

Banten

5 Basic Iron and Steel Industry 1170 Private 2009 2011 KPI Steel Cilegon,

Banten

Main Economic Activities - Tourism



Billion) Developers

Starting Period

End Period

KPI

1

Tambling Wildlife Nature Conservation (Forest Conservation, Wildlife, and Marine Nature Reserve; Ecotourism)

2000 Private KPI Tanggamus,

Lampung

2 Tourism development at Tanjung Lesung

73877 Private KPI Tanjung

Lesung, Banten

Main Economic Activities - Timber

1 Industrial forest concessions and other wood panel industry


Sumatra

Main Economic Activities - Shipping

1 Industrial rubber crumb (crumb rubber) in West Sumatra

252 Private 2008 2010 KPI Padang, West

Sumatra

Main Economic Activities - Gold

1 Mining and Processing of Gold, Silver and others in South Tapanuli (Martabe Project)

7000 Private 2007 2021 KPI South

Tapanuli, North Sumatra

Main Economic Activities - Rubber

1 Industrial rubber crumb (crumb rubber) in West Sumatra

252 Private 2008 2010 KPI Padang, West

Sumatra

Main Economic Activities - Other sectors

1 Construction of concentrate plant and mining infrastructure of zinc and lead in Kabupaten Dairi

4500 Private 2013 2019 KPI Dairi, North

Sumatra

2 Construction of BWD (Bucket Wheel Degree) Capacity 2200 ton/unit/year

450 SOE 2011 2014 KPI Bangka Barat, Bangka Belitung

3 Development of Industrial Estate West Bangka - Industrial Anchors: Chemical Tin


4 Technological improvements in the tin smelting process in Ummet Mentok


5 Renovation of Tin Ore Processing Center in Timah Mentok

18 SOE 2012 KPI Bangka Barat, Bangka Belitung

6 Modification of Ship Dredger Kundur 1 to Bucket Wheel Dredger Kundur 1

225 SOE 2011 2014 KPI Batam,

Kepulauan Riau

*) SOE = State-Owned Enterprise (BUMN)


A-5

A.2 List of Main Planned Infrastructure Projects

No Main Planned Infrastructures Developers Description

1 Kuala Namu Airport PT. Angkasa Pura II and Ministry of Transportation

International Hub Airport Operated in 2013

2 Kuala Tanjung Bridge PT. Pelindo I and Ministry of

Transportation International Hub Port

3 Steam Powerplant in Asahan PT. PLN Capacity 2 x 87 MW

4 Steam Powerplant in Dumai PT. PLN Capacity 2 x 150 MW

5 Steam Powerplant in South Sumatra 5 PT. DSSP Power South

Sumatra Capacity 2 x 150 MW

6 Steam Powerplant in South Sumatra 6 PT. DH Energy Capacity 2 x 300 MW

7 Steam Powerplant in South Sumatra 8 PT. Bukit Asam Capacity 2 x 600 MW

8 High Grade Highway BPJT – Ministry of Public

Works Length 1.670 km

9 Palapa Ring Ministry of Communication and

Information Construction and

Rehabilitation

10 Tanjung Enim – Lampung Railway PT. BATR Length 330 km

11 Selat Sunda Bridge Mix Plan for 2014


A.3 Planned Policy/Regulation and Infrastructure in Sumatra EC

No Economic

Activities Planned Regulation Planned Infrastructure/Connectivity

1 Palm Oil

Increase spatial certainty for the development of upstream activities for palm oil (plantations and mills/palm oil processing plants);

Improvement of regulations, incentives, and disincentives for the development of downstream palm oil industries.

Improve the quality of roads from the plantations to palm oil mills, the industrial estates and ports. CPO productivity level is very dependent on the travel time from the plantations to the mills, the quality of FFB (Fresh Fruit Brunch) will decline within 48 hours after picking;

Increase the capacity and quality of railway at several locations to transport crude palm oil from the mills to the ports;

Increase the capacity and quality of port services to transport CPO production. At present, the traffic density in the ports is such that it causes excessive waiting times of 3-4 days.

2 Rubber

Reviewing the Government policy concerning the types of materials and products that should not be exported to support local industries (arranged through the Minister of Trade Decree No. 1 Year 2007);

Improving efficiency of processing and marketing value chain by effectively implementing the Law No. 18 Year 2008 of the Plantation and its implementation rules (Regulation of the Minister of Agriculture No. 38 Year 2008 of Guidelines for Materials Processing and Marketing Sports Rubber, and Regulation of the Minister of Trade No. 53 Year 2009 concerning the Control of Export Commodity Quality Sports Materials Standard Indonesian Rubber Traded);

Increasing the productivity in the upstream (small holder plantations) by replanting gradually on a larger scale, together with subsidy assistance from bank credit, providing a high quality seeds along with the incentives that support the replanting program, providing a sufficient post-harvest’s extension of cultivation and technology (such as: wiretapping, usage of

Improve the quality of roads from the plantations to palm oil mills, the industrial estates and ports. CPO productivity level is very dependent on the travel time from the plantations to the mills, the quality of FFB (Fresh Fruit Brunch) will decline within 48 hours after picking;

Increase the capacity and quality of railway at several locations to transport crude palm oil from the mills to the ports;


A-7

No Economic


tapping bowl, tapping knife, rain shield, clotting materials and clotting containers), and also a support from the National Land Agency (BPN) to collect the land ownership data and provision of land certificate data;

Providing an easier way for investors to invest in the downstream rubber industry with the provision of information along the process and procedures, which are clear and measurable investments.

3 Coal

Setting the coal usage as the primary fuel for electricity power in Sumatra. It is estimated that 52 percent of fuel for power plants in Sumatra will use coal by 2020. This will increase interest for investors for coal mining operations;

Review the tax policies for for converting process from coal to electricity though the c steam power plant (or in general, coal processing industry in minemouth)

Issuance of regulations concerning the operational policies in utilizing low rank coal for the national electricity supply. Apply the direct appointment method for coal companies capable of supplying coal for minemouth Power Plant for a minimum of 30 years, with interest to use for power generation;

Acceleration of the determination of Reference Price of Coal in order to determine the benchmark prices of coal on a regular basis based on location and amount of calories;

Standardization of methods of measuring and reporting the amount of production at the mine and the allocation of export and Domestic Market Obligation (DMO) to obtain coal Mining Permit (IUP) from the Ministry of Energy and Mineral Resources and local government;

Strengthen the regulatory and land policy to solve the issue of land compensation especially for mining concession and forest area.

Control of illegal mining without permit (PETI-Illegal Mining).

Coal mining activities in Central South Sumatra requires rail infrastructure that can be used to transport coal. Given the low CV of coal, transport by road is not economically efficient. By using the railway, transport costs will decrease up to a profitable level for the low CV coal;

Construction of a railway that can carry coal from the inland to the port;

Increasing capacity of the port in Lampung and South Sumatra to improve the delivery of coal out of Sumatra.


No Economic


4 Shipping

Increase the number and ability of the national shipbuilding industry in the construction of ships up to a capacity of 50,000 DWT (Dead Weight Tonnage);

Establish a national shipbuilding facility with production facilities in the form of building berth, graving dock with capability of building or repairing vessels up to 300,000 DWT;

Enforce the development and repairment for ships under 50,000 DWT;

Prioritize shipbuilding to support oil and gas activities, except for the vessel type C;

Remove Value Added Tax (VAT) from upstream to downstream in the shipping industry in order to cut

production costs by 10 percent;

Determine the level of interest rates and reasonable collateral for loans from commercial banks and

granting soft loans from ODA (Official Development Assistance)/JBIC (Japan Bank for International Cooperation) with two step loan schemes through Public Ship Financing Program (PSFP);

Review the Minister of Finance Regulation No. 261/PMK.011/2010 with regard the implementation of Import Duty Covered by Government (BMDTP) policy for shipping industries only for shipping component that is not produced in Indonesia OR

Review the implementation of Import Duty Covered by Government (BMDTP) policy only for shipping component that is not produced in Indonesia or not fulfill the Minister of Finance Regulation No. 261/PMK.011/2010 based on QCD (Quality, Cost, dan Delivery).

Provision of basic infrastructure supporting the shipping industry in Lampung region, such as electrical energy, road network and water treatment;

Provision of supporting infrastructure for industry products shipping, such as ports.

5 Steel

Improve the national’s iron ore concentrate production through policies that provide the requirements by building a manufacturing process of iron ore concentrate near the mining areas;

Increase production capacity of the steel industry through the

Provision of supporting infrastructure (electricity, road network, railways, ports);

Improve basic infrastructure including inter locus related activities (roads, railways, waste managements).


A-9

No Economic


provision of raw materials, particularly iron ore through the Domestic Market Obligation (DMO), issued by the central government;

Improve the competitiveness of national steel products through development of new industries that have not been developed in Indonesia, increase production capacity, and build national upstream and downstream business partnerships;

Develop a business climate that is conducive for the steel industry through increased partnerships, fiscal incentives and disincentives, application of level of domestic content regulations (TKDN) on steel products, and improve facilities support production and marketing of national steel industries;

The Policy for cluster development of downstream steel industry prioritizes industrial estates for efficiency of operation and maintenance of supporting infrastructure or integration of steel smelting and stainless steel production (slab, Hot Roll Coil (HRC) and Cold Roll Coil (CRC)).


A.4 List of KPI and Its Allocation for Economic Activities

No Investment

Focus Area

Economic

Activities Investors

Supporting

infrastructure

Total Investment

(IDR B)

1 KPI Sei Mangkei Palm Oil SOE, Combined

Port, Railway, Road,

Energy, Natural

Resources

4,930

2 KPI Tapanuli

Selatan Other sector Private Energy 7,000

3 KPI Dairi Other sector Private Port 4,500

4 KPI Dumai Palm Oil, Oil & gas SOE, Private Port, Road, Energy,

Natural Resources 4,620

5 KPI Tanjung Api-

api-Tanjung Carat Coal, Palm Oil SOE, Private

Port, Road, Energy,

Natural Resources 15.574

6 KPI Muara Enim-

Pendopo Coal, Palm Oil SOE, Private

Railway, Road,

Energy 72,134

7 KPI Palembang Coal, Oil & gas SOE

Airport, Port, Road,

Energy, Natural

Resources

8,089

8 KPI Bangka Barat Other sector SOE Port and road 1,346

9 KPI Batam Other sector SOE Port 225

10 KPI Lampung

Timur-Tanggamus Shipping, Palm Oil Private

Port, Road, Energy,

Natural Resources 4,929

11 KPI Cilegon (Iron-

steel) Iron-Steel

SOE, Private,

Combined Port and road 58,538

12 KPI Tanjung

Lesung Tourism Private Airport and road 73,877

13 KPI Padang Rubber Private Port, Train, Energy 252

14 KPI Prabumulih Oil & Gas SOE Natural Resources 1,900

15 KPI Bandar

Lampung Oil & Gas SOE

Airport, Road,

Energy, Natural

Resources

818

16 KPI Pelalawan Palm Oil Combined 46,336

17 KSN Selat Sunda KSN Selat Sunda Combined Road 150,000

18 National Combination

Airport, Port, Train,

Road, Energy,

Natural Resources

0


A-11

No Investment

Focus Area

Economic

Activities Investors

Supporting

infrastructure

Total Investment

(IDR B)

19 Others Private Private

Airport, Port, Train,

Energy, Natural

Resources

2,086

Source : Coordinating Ministry for Economic Affairs, 2014

A.5 Updated Number of KPI in Sumatra

No Priority Zone Investment Focus Investment Value (billion IDR)

Real Sector Infrastructure Total

1 Sei Mangkei 6.4 17.921,45 24.4

2 Tapanuli Selatan 7.0 5.3 12.3

3 Dairi 4.5 250.0 4.8

4 Dumai 4.6 52.057,03 56.7

5 Tj. Api-Api – Tj. Carat 15.6 9.1 24.7

6 Muara Enim - Pendopo 72.2 91.400,9 163.6

7 Palembang 8.4 16.056,06 24.4

8 Bangka Barat 1.3 3.668,13 5.0

9 Batam 225.0 42.6 42.8

10 Tanggamus 6.0 2.4 8.4

11 Besi Baja Cilegon 58.5 2.1 60.6

12 Tanjung Lesung 73.9 11.815,5 85.7

13 KSN Selat Sunda - 150.3 150.3

TOTAL 258.7 405.0 663.7

No Potential Zone Investment Focus Investment Value (billion IDR)

Real Sector Infrastructure Total

14 Padang 252 13.382,14 13.634

15 Prabumulih 1.79 - 1.79

16 Bandar Lampung – Lampung Timur 1.129 6.145,74 7.275

17 Pelalawan 46.336 - 46.336

18 Anambas* - - 0

19 Danau Toba** - - 0

TOTAL 49.507 19.527,88 69.034,88

Source: Sumatra EC Working Team, 2014

APPENDIX B – Supporting Information on Pre-scoping

Activities

SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / NOA / 2014-03



B-1

B Supporting Information on Pre-scoping Activities

B.1 List of Relevant Stakeholders for Sumatra EC

No Institution Groups Issues/Sectoral Relevance

1 Bappeda, Aceh Government Regional planning

2 BLHD, Aceh Government Envrionmental management

3 Bappeda, North Sumatra Government Regional planning

4 BLHD, North Sumatra Government Envrionmental management

5 Bappeda, West Sumatra Government Regional planning

6 BLHD, West Sumatra Government Envrionmental management

7 Bappeda, Riau Government Regional planning

8 BLHD, Riau Government Envrionmental management

9 Bappeda, Jambi Government Regional planning

10 BLHD, Jambi Government Envrionmental management

11 Bappeda, South Sumatra Government Regional planning

12 BLHD, South Sumatra Government Environmental management

13 Bappeda, Bengkulu Government Regional planning

14 BLHD, Bengkulu Government Envrionmental management

15 Bappeda, Lampung Government Regional planning

16 BLHD, Lampung Government Envrionmental management

17 Bappeda, Bangka Belitung Government Regional planning

18 BLHD, Bangka Belitung Government Envrionmental management

19 Bappeda, Kepulauan Riau Government Regional planning

20 BLHD, Kepulauan Riau Government Envrionmental management

21 PIC EC Sumatra Government Envrionmental management

22 Universitas Andalas – Center for

Environmental Studies (PSL) University Network Environmental issues

23 Universitas Sam Ratulangi – Center for


24 Universitas Riau – Center for Environmental Studies (PSL)

University Network Environmental issues

25 Universitas Lampung – Center for


26 Universitas Universitas Sriwijaya – Center

for Environmental Studies (PSL) University Network Environmental issues

27 Universitas Sumatra Utara – Center for Environmental and Population Studies

(PSL) University Network

Environmental & Indigenous people issues

28 Universitas Syiah Kuala – Land Resources

Conservation University Network Environmental issues

29 PPLH Regional Sumatra Government Environmental management

30 Planning and Rural Development, Planning

Division KP3EI Government Regional planning

31 National Spatial Planning Department, Government Regional planning

B-2 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03

No Institution Groups Issues/Sectoral Relevance

Ministry of Public Works

32 Spatial Planning and Environment

Department, Ministry of Home Affairs. Government Regional planning

33 Environment Department, Bappenas Government Environmental management

34 Transportation Department, Bappenas Government Regional planning

35 Water Resources and Irrigation

Department, Bappenas Government Regional planning

36 Natural Resources and Environment

Regional Policies, Ministry of Environment Government Environmental management

37 WARSI NGO Environmental issues

38 WALHI NGO Environmental issues

39 AMAN NGO Indigenous people issues

40 JATAM NGO Mining issues

41 KIARA NGO Fisheries and Marine Issues

42 CIFOR Research Institution Forestry issues


B-3

B.2 Minutes of Consulative Meeting

MP3EI SEA Minutes of Meeting

Meeting: Consultation for Baseline Mission with Ministry of Forestry (MoForest)/2013

Attendees: 1. MP3EI SEA Team (Budi Wiryawan, Asep Sukmara, Dwi Nurcahyadi) 2. MoForest, PIC for Sumatra EC (Pak Waspodo, Pak Joko Suwarno, Ibu Dwita

Hidayati)

Absent : n/a

Date: 12/09/2013 Time: 10.00-11.30 Venue: Gedung VII Lantai 2, Biro Perencanaan Meeting Room Kementerian Kehutanan, Jakarta

Issues Action/Remarks

1. Introduction and overview of the baseline workshop plan by team Introduction of the EC team members for Sumatra EC Overview of the baseline workshop plan and required

provincial dataset the team wish to collect from the workshop/missions

Request on contacts with local/provincial stakeholders for further communication and coordination

Clarification on the planning mechanism of the M3EI EC Plans in Kalimantan and their linkages to provincial planning

Request for information of the updated projects (on going and to be implemented) in Sumatra EC a

Request for baseline study/previous study regarding the forestry and water issues in Sumatra (if any)

Baseline workshop would be held on 2nd of October in Medan by inviting local govt institution, university networks and local NGOs. Pak Waspodo suggest to invite BPKH in MP3EI influenced, KSDA, TNC, Sriwijaya University, Unila, UNRI, USU, Syah Kuala University, and Andalas University, and WARSI (local NGO)

The MoForest is confirmed with the schedule and will attend the Workshop but Pak Waspodo ask what would be the role of the PIC in the WS?Do they need to present or opening or just attending the meeting? The invitation should be submitted to Sekjen Ministry of Forestry as head of secretariat of working group of Sumatra EC.

MoForest will give the contacts list of provincial governments and other relevant stakeholders

MoForest confirmed that the latest MP3EI document will be ready on this September

MoForest gave the recent updated list

of projects to the team and confirmed that there are 19 KPI in Sumatra EC included KPI which have been proposed by local government

MoA confirmed that baseline data on

forestry will be found in Bappeda

MP3EI SEA team should bring a formal letter indicating that they are assigned by Bappenas to carry the activities

MP3EI should invite Sumatra EC contact person from Ministry of Industry



2. MoForestry presented the latest MP3EI in Sumatra Corridor, and raised some issues: Social conflict in Tapanuli Selatan related to tailing from

Gold mining Overlap concession between coal mining and production

forestry (HTI) Infrastructure, mining and agriculture development in

forest area

To be considered in the baseline analysis and potential issues identification.


B-5

B.3 Minutes of Prescoping & Baseline Workshop

MP3EI SEA Minutes of Meeting

Meeting: Prescoping MP3EI SEA – Sumatra EC/2013

Attendees: As attached

Absent : -

Date: 2 October 2013 Time: 09.00-16.00 WIB Venue: Grand Hotel Elite Medan


1. Opening of the workshop by KP3EI Connectivity WG Framework for activities Greening MP3EI and SEA process Expected output of the activities

All to note (presentation)

3. Introduction from DHI-Integra Introduction of SEA Team Overview of workshop agenda Expected output of the workshop

All to note

4. Introduction of the participants Attached 5. Screening for SEA video Moved to coffee break session 6. Workshop 1st Session

a. Introduction on SEA Overview of potentials and threats to environmental conditions from the

proposed development. Overview of the importance and principles of SEA SEA development in Indonesia Objective of baseline data workshop

b. MP3EI SEA Project Implementation & Deliverables Project Background, Team, Output and Scheduling MP3EI SEA Approaches and Workplan (both for Policy and Economic

Corridors) Economic Analysis Input

- Coffee Break (Screening for SEA video)

c. Expected output of MP3EI SEA Prescoping

Importance of Baseline Data MP3EI SEA Database/Information System Management Hands on Baseline Data Collection

- Overview of Potential National Strategic Issues - Assignment for group work activities - Overview of plenary discussion

d. More on SEA Usual SEA steps SEA and Planning, SEA and EIA Next stage: Scoping!

All to note

7. Questions/concerns/feedbacks: 6.a Bonie Dewantara – Conservation Indonesia Suggestion to link all SEA documents in spesific level avoid conflicts between

stakeholders. 6.b Dedy Harlan – Bappeda North Sumatra


Analysis process for SEA is the most hard work to do for North Sumatra Province

6.c Slamet Budi Yuwono – Lampung University SEA should be done before the activities start 6.d Joko Suwarno – Ministry of Forestry More explanation about KLHS MP3EI isrequired. MP3EI programs, including

the terminated and alternative projects should be revised for next meeting. The positive impacts for local communities should be the main purpose for the programs.

6.e M Yudi Agusrin - WWF Riau Sometimes, SEA has some conflicts with local government concept. 6.f Anisa Wisati – Badan Geology – Ministry of Energy and Mineral Lack of coordination, especially in data sharing, is a problem for KLHS team. 6.g Zainuddin – KKI Warsi Jambi SEA is expected to not revise any provincial SEA that was already done.

Revising existing SEA documents might create another conflicts. 6.h Zuchri Abdi – PPE Sumatra The members of Bappenas team who attend this workshop are relatively

young and inexperience, the result of the SEA might be questionable. The existing policies should be the reference for MP3EI SEA preparation.

6.i Haruki Agustina – KLH Suggestion to conduct a special meeting only to discuss the perception of SEA

to avoid conflicts between stakeholders. The required national dataset can be provided by Ministry of Enviroment if available.

6.j. Ardinis Arbain – Andalas University The possibilities of revising MP3EI project and RTRW based on SEA

reccomendation.

-

KP3EI – Bappenas : MP3EI document based on green economy is already one. Nizhar Marizi – Bappenas There is no guarantee that SEA can be applied effectively. SEA will be the reference for evaluation and revision that required for every project creating substantial negative impacts.

8. Group Assignments Division into groups and debriefing on group assignments

- Identification of issues relevant to Sumatra (based on list of nation-wide issues) regarding the available data and its spatial distribution

- Groups divided into 2. Each group consisted of participant from central government, provincial government, NGO and universities.

Exercise on potential key issues identification and baseline data collection

9. Plenary discussion Discussion were guided by Mr. Dwi Nurcahyadi and Mr. Budi Wiryawan. The discussion led by the matrix and maps provided to figure the related locus. The participants actively delivered comments, inputs, correction and information regarding the related data needed to support those issues. Some of the participants illustrated geographical scope of their relevant issues on the maps given. The point of the discussion was mostly the data needed are available in the ministries that was not invited to this workshop. Then, Bappenas and KLHS team need to collect that data and information. The participants from Sumatra Utara, Sumatra Barat, Kepulauan Riau and ministry of energy and minerals resources have shared their data to the team.


B-7

Most of data were non spatial data. At the end of discussion, each group presented their group discussion result and commented by others. More participants should be invited on the next workshop to gather wider issues. The attendances commited to actively support the SEA activities in the future. Since the workshop held in Medan, Capital of Sumatra Utara, the participants from Sumatra Utara asked the team to visit Bappeda office to collect more data/publication related to the economic development in Sumatra Utara.

The following points from the discussion: - Apply SEAs to integrating MP3EI - Invite more stakeholder relevant to the issues - Compose new letter from Bappenas to get spatial data from provincial

government - Involve Jatam and Walhi into the process - Arrange upcoming workshop not in the end of the fiscal year (the

provincial governments are hectic with workload) - Provide larger meeting room - Provide sufficient administration staff for workshop

Recommended Follow-up

- The upcoming workshop should consider the fiscal year - One person for administration person should be stand by to confirm

the attendances and handle the administration/ reimbursement process.

- SEA team need to visit Jatam and Walhi to gathered their point of view regarding MP3EI

- SEA team should strengthen the coordination with Bappenas and EC PIC regarding the data collection.


B.4 List of Attendance

Event : SEA Prescoping & Baseline Workshop for Sumatra EC

Date : 02 October 2013 09.00-16.00 WIB

Place : Grand Hotel Elite Medan

No Name Institution

1 Dwi Nurcahyadi DHI-Integra

2 Ardinis Arbain Universitas Andalas

3 Dikarama Kaula Bappedalda Sumatra Barat

4 Zainuddin KKI Warsi Jambi

5 Budy Wiryawa DHI-Integra

6 Dimitra Viantari MP3EI Bappenas

7 Elly Damayanty MP3EI Bappenas

8 Imelda S.Y. Sinaga MP3EI Bappenas

9 Mahmud WWF Indonesia

10 Zuchri Abdi PPE Sumatra KLH

11 Denny PPE Sumatra

12 Anton S. Hadiputro KESDM

13 M. Fazwa R. Daulan Bappeda Sumatra Utara

14 Mhd Irsyad S. Bappeda Sumatra Utara

15 Dwi Suranto USU Medan

16 Slamet Budi Yuwono Unila Lampung

17 Dedy Wahyudi Hamidy Bappeda Kepri

18 Ade Kumiadi Bappeda Kepri

19 Mubarak Universitas Riau

20 M. Yudi Agusrin WWF

21 Joko Suwarno Kemenhut

22 Annisa W. KESDM

23 Bonie Dewantara Conservation Indonesia

24 Nizhar Marizi Bappenas

25 Haruki Agustina KLH

26 Almar R. Bappeda Sumatra Utara

27 Dedi Harlan Bappeda Sumatra Utara

28 Irine Pratiwi C. Hutagaol KP3EI

29 Selly Galvani KP3EI

30 Hadi Nugroho KESDM

31 Aryaning Dyah W. Dinas Kelautan dan Perikanan

32 Kadir Dinas Kelautan dan Perikanan


B-9


B-11

APPENDIX C – LIST OF REFERENCES

List of References

C-1

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C-4 SEA for Indonesian Master Plan for Accelerated Economic Development (MP3EI) Pre-Scoping Report / 2014-03


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