1

INSTITUTIONAL STRENGTHENING FOR IMPROVED VILLAGE

SERVICE DELIVERY PROJECT

Environmental and Social Management Framework

MINISTRY OF HOME AFFAIRS

and

MINISTRY OF VILLAGES, DISADVANTAGED AREAS AND TRANSMIGRATION

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

2

3

TABLE OF CONTENTS

Table of Contents 3

List of Tables 5

List of Figures 5

List of Annexes 5

List of Abbreviations 6

1. Strategic Context 7

2. Project Description 17

2.1 Theory of Change 17

2.2 Project Development Objectives 20

2.3 Project Components 21

2.4 Project Beneficiaries 25

3. Potential Environmental and Social Impacts and Risks and Potential

Mainstreaming of Environmental and Social Sustainability 26

3.1 Potential Impacts and Strengthening Areas 26

3.2 Institutional Capacity 32

4. Objectives of the Environmental and Management Social Framework (ESMF) 33

5. Environmental and Social Sustainability Aspects in the Current Implementation

of the Village Law and Direction Towards Strengthening 33

6. Framework for Mainstreaming Environmental and Social Sustainability Aspects

in the Capacity Building and Institutional Strengthening of the Implementation

of the Village Law 36

7. Environmental and Social Management Framework for Component 3 and E-Waste 41

7.1 Principles, Screening and Safeguards instruments 43

7.2 Protocol for E-Waste Disposal 46

8. Indigenous Peoples Planning Framework (IPPF) 48

8.1 Objective 48

8.2 Specific Objectives of this Framework 48

8.3 National Regulations and Institutional Arrangements Pertaining to IPs 49

8.4 Objectives and Requirements of OP 4.10 52

8.5 Application of OP 4.10 in Project Component 1, 2, and Component 4 52

8.6 Criteria of Indigenous Peoples 53

8.7 Screening of IPs 54

8.8 Assessment of IPs as beneficiaries or affected by an activity 54

8.9 Indigenous Peoples Plan (IPP) and Sub-Project Design 54

9. Public Consultations and Disclosures 55

10. Grievance Redress Mechanisms (GRM) 56

11. Institutional Arrangements for Implementing the Environmental and Social

Sustainability Aspects 58

12. Capacity Building Plan 60

13. Monitoring and Evaluation 62

14. Budget to Implement the ESMF 63

4

LIST OF TABLES

Table 1: Expected GoI Contributions to Project Activities (2019-2024) 21

Table 2: Project Costing by Component 25

Table 3: Indicative Key Strengthening Areas 39

Table 4: Responsible Agencies for Mainstreaming and Strengthening the ESS Aspects 58

Table 5: Proposed Capacity Building Plan for Mainstreaming and Strengthening 61

the ESS Aspects

Table 6: Cost Components and Responsible Agencies to Provide Budget for the Implementation 65

of the Mainstreaming and Safeguards in Component 3 as Specified in this ESMF

LIST OF FIGURES

Figure 1: Annual Government Expenditures for Village Law (2018) 12

Figure 2: Overall Project Results Chain 18

Figure 3: Project Theory of Change 19

Figure 4: Organizational Structure of the Institutional Strengthening for Improved

Village Service Delivery Project 26

Figure 5: E-Waste Management Procedures 48

LIST OF ANNEXES

Annex 1: Project Implementation Structure and Arrangement 66

Annex 2: Some of the Ongoing Capacity Building Activities in the Ministry of Village and the

Ministry of Home Affairs for the Implementation of Village Law 76

Annex 3: Some of the Ongoing Capacity Building Activities in the Ministry of Home Affairs

for the Implementation of Village Law 78

Annex 4: E-Waste Management 79

Annex 5: Report on Environmental Screening 82

Annex 6: Suggested Screening Form (Generic) 83

Annex 7: Format of Environmental Management Plan and Environmental Monitoring

Plan (UKL/UPL) 84

Annex 8: Format of Statement of Assurance For UKL/UPL Implementation 87

Annex 9: SOP for Environmental Management 88

Annex 10: Format of the “Statement of Commitment to Implement Environmental

Management and Monitoring” (SPPL) 89

Annex 11: Typical Subproject Impacts and Mitigation Measures 90

Annex 12: Environmental Codes of Practices (ECOPs) 91

Annex 13. Form Check List Environmental Code of Practice (ECOPs) 93

Annex 14: Social Assessment of Indigenous Peoples 97

Annex 15: Format of Indigenous Peoples Plan (IPP) 98

Annex 16: Minutes of Consultation Meeting with IPs 100

Annex 17: Notes on Free, Prior and Informed Consultations (FPIC) 101

Annex 18: List of Districts that Potentially Have Indigenous Peoples Presence 104

Annex 19: Chance Finds Procedures 105

Annex 20: Notes from Public Consultations of the ESMF 106

5

LIST OF ABBREVIATIONS

APBD Local Government Annual Budget/ Local Budget

APBDes Village Government Annual Budget/ Village Budget

APBN National Government Annual Budget/ Central Budget

AMDAL Analisis Mengenai Dampak Lingkungan (Environmental Impact Assessment)

B3 Bahan Beracun Berbahaya (hazardous and toxic waste material)

BAPPENAS Badan Perencanaan Pembangunan Nasional (National Development Planning Board)

BAPPEDA Badan Perencanaan Pembangunan Daerah (Local Development Planning Agency)

BKM or LKM Badan/Lembaga Keswadayaan Masyarakat (Community Board of Trustees)

BPS Badan Pusat Statistik (National Statistical Bureau)

BPKP Badan Pengawasan Keuangan dan Pembangunan (National Internal Auditor)

Bupati Head of Regency/ District

CDD Community Driven Development

CPIU Central Project Implementation Unit

DAK Dana Alokasi Khusus (Special Allocation Fund)

DED Detailed Engineering Design

DG Directorate General

EA Environmental Assessment

EMP Environmental Management Plan

ESIA Environmental and Social Impact Assessment

ESS Environmental and Social Sustainability

ESMF Environment and Social Management Framework

ESMP Environment and Social Management Plan

E-Waste Electronic Waste

GOI Government of Indonesia

GRM Grievance Redress Mechanism

IBRD International Bank for Reconstruction and Development

IPs Indigenous Peoples

IPP Indigenous Peoples Plan

IPPF Indigenous Peoples Planning Framework

KAT Kelompok Adat Terasing (Isolated Indigenous Community)

Kecamatan Sub District

Kelurahan Urban Ward

Keppres Keputusan Presiden (Presidential Decree)

KSM Kelompok Swadaya Masyarakat (Community Self-help Group)

KPMD Kader Pemberdayaan Masyarakat Desa (Village Cadre for Community

Empowerment)

LG Local Government

LGDP Local Government Development Program

M&E Monitoring and Evaluation

MA Masyarakat Adat (Customary Community)

MHA Masyarakat Hukum Adat (Customary Law Community)

MIS Management Information System

MoHA Ministry of Home Affairs

MoV Ministry of Village

NGO Non-Government Organization

NMC National Management Consultant

6

OHS Occupational Health and Safety

OP Operational Policy

PAD Project Appraisal Document

PAP Project Affected People

PCR Physical Cultural Resources

PD Pendamping Desa (village facilitator)

PD-P Pendamping Desa Pemberdayaan (village facilitator for empowerment)

PD-TI Pendamping Desa Teknis Infrastruktur (village facilitator for infrastructure)

PDO Project Development Objective

PIU Project Implementation Unit

PMU Project Management Unit

Pokja Kelompok Kerja (National Task Force)

PTPD Pendamping Teknis Pemerintahan Desa (Technical Assistant for Village Governance)

RPJMN Rencana Pembangunan Jangka Menengah Nasional (National Medium Term

Development Plan)

RPJMD Rencana Pembangunan Jangka Menengah Daerah (Regional Medium Term

Development Plan)

RPJMDes Rencana Pembangunan Jangka Menengah Desa (Village Medium Term

Development Plan)

RKPDes Rencana Kerja Pembangunan Desa (Village Development Work Plan)

SA Social Assessment

SMS Short-text Messaging Services

SOP Standard Operational Procedure

SPPL Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan (Letter of

Environmental Management and Monitoring)

TA Tenaga Ahli (Expert)

TMC Technical Management Consultant

TOR Terms of Reference

TPK Tim Pelaksana Kegiatan (Implementing Unit)

UKL/UPL Upaya Pengelolaan Lingkungan/ Upaya Pemantauan Lingkungan (Environmental

Management and Monitoring Plan)

7

1. STRATEGIC CONTEXT

A. Country Context

1. Indonesia is the world’s largest archipelagic state, fourth most populous nation, tenth-

largest economy in purchasing power parity terms and is one of the most socially,

economically and culturally diverse countries in the world. Indonesia has a population of more

than 261 million, with 300 distinct ethnic groups and over 700 languages and dialects spread across

around 6,000 inhabited islands spanning 1.9 million kilometers squared from Aceh in the Indian

Ocean to Papua on the edge of the Pacific. The country has witnessed rapid urbanization since the

1970s. However, with approximately 45 percent of the population or 118.9 million living in rural

areas, it remains less urbanized than most middle-income countries.

2. Indonesia continues to make progress on reducing poverty and has begun to reverse

inequality, with the poverty rate falling to a single digit for the first time in 2018 and the Gini

coefficient declining. Indonesia made large gains in poverty reduction since 1999, cutting the

poverty rate by more than half to 10.6 percent in 2017.1 However, most of the progress happened

before 2012, with poverty rates declining by 4.6 percentage points between 2007 and 2011,

compared to a 2.1 percentage point reduction since 2012. Inequality increased over this period,

rising from a Gini coefficient of 30 in 2000 to 41 in 2010. More recently, both poverty and

inequality have begun to decline. The national poverty rate fell to 9.8 percent in 2018 and the Gini

coefficient to 38.9.

3. Poverty is significantly higher in Indonesia’s rural and lagging regions, and the rural

poor are particularly vulnerable to sliding back into poverty. The rural poverty rate is about 14

percent, compared to 7.7 percent in urban areas. This means that close to 60 percent of the poor

reside in rural areas, where poverty reduction has tended to be slower. From 2014 to 2017 the rural

poverty rate declined by only 0.3 percentage points, from 14.2 to 13.9 percent, compared 0.6

percentage points, from to 8.3 to 7.7 percent, in urban areas. Households living in predominantly

rural districts also lag on several other human development indicators. For example, only 86

percent of births are attended by a skilled health worker and 62 percent have access to safe drinking

water in predominantly rural districts, compared to 98 percent and 83 percent in predominantly

urban districts. Likewise, socioeconomic outcomes are lower, with household heads in

predominantly rural districts attaining lower levels of education (8.5 years vs. 10.0 years in urban

districts), being much more reliant on agricultural employment (49 percent vs. 11 percent in urban

districts) and informal employment (66 percent vs. 38 percent in rural districts).2 Overall, rural

Indonesians remain vulnerable to poverty, and lack the economic security to transition to the middle

class, which is crucial to Indonesia’s future growth.

4. The rural poor are also exposed to shocks from natural disasters and climate change,

threatening their livelihood security and contributing to trapping them in poverty. As the

largest archipelago nation in the world, Indonesia is highly vulnerable to the negative impacts of

climate change. Hydrometeorological events such as floods and droughts, which currently make

1 World Development Indicators for Indonesia, (updated November 14, 2018), World Bank. 2 SUSENAS 2017 data.

8

up 80 percent of disaster occurrences in the country, are projected to increase with climate change.3

In the long run, Indonesia is also anticipating impacts from slow-onset events, namely sea level

rise (SLR), increasing temperatures, and shifting rainfall patterns.4 The poor populations in the

rural and lagging regions are expected to face the negative impacts of climate change through

multiple channels, including increased disaster damage to village infrastructure, water shortage,

reduced agricultural yields, increased food insecurity, more prevalence of climate-sensitive

diseases (such as diarrhea, dengue and malaria), etc. Java, Bali and Sumatra islands face high and

very high risks from climate change compared to other regions, due to their higher concentration

of population and infrastructure. Villages in Eastern Indonesia are also particularly prone to more

droughts.

5. Indonesia’s dynamic digital economy, driven in part by its young tech-savvy

population, together with its infrastructure investments in reducing internet costs and

expanding the fiber backbone to all regions, provides a unique opportunity to bridge the

“digital divide” between urban and rural areas as well as the poor and non-poor. Indonesia is

rapidly digitizing; however, it is concentrated in urban areas despite recent government efforts to

expand access to internet services in rural areas and remote regions. In only five years, the total

number of internet users in Indonesia spiked from roughly 63 million in 2013 to 143 million people

in 2017.5 This rapid growth in internet users is consistent with decreasing mobile data costs. From

2014 to 2018, the cost of one gigabyte in Indonesia decreased from roughly 2 percent of GNI per

capita to less than 0.8 percent, making data costs in Indonesia as low as 50 percent of the cost paid

in neighboring ASEAN countries.6 While in urban areas 72.4 percent of the population had internet

access, for rural areas internet penetration stood at 48.3 percent. To improve connectivity

throughout Indonesia, the government is undertaking an ambitious country-wide infrastructure

investment, the Palapa Ring Project, spanning 67,887 kilometers of broadband fiber-optic cable

over sea and land. The Palapa Ring Project will connect all districts across Indonesia, providing

equality of service to even the most remote locations to boost digital inclusion.

B. Sectoral and Institutional Context

Sectoral Context

6. In 2014, the Government of Indonesia passed the Village Law (2014/6), significantly

increasing fiscal resources for development and community empowerment in Indonesia’s

75,000 rural villages (desa). Between 2015 and 2018, fiscal transfers to villages increased from

IDR 78 trillion (US$5.6 billion) to IDR 119 trillion (US$8.4 billion). The new Village Law, which

was enacted in early 2014, also expanded the roles and responsibilities for villages, including for

village administration, development, basic service delivery and community empowerment. The

fiscal transfers are large and in 2018 they account for approximately six percent of the national

budget, and around 0.5 percent of GDP. On average, a village now receives approximately IDR 1.6

3 Government of Indonesia (2016), Indonesia’s First Nationally Determined Contributions submitted to the

UNFCCC. 4 Government of Indonesia (2013), National Action Plan for Climate Change Adaptation (RAN API): Synthesis

Report. 5 Association for Internet Service Providers in Indonesia (APJII) 6 Google and TEMASEK, e-Conomy SEA 2018, Southeast Asia’s Internet Economy Hits an Inflection Point,

2018.

9

billion ($113,500) every year, although the amount on a per capita basis varies widely because the

allocation formula includes a large fixed allocation and village population sizes vary from an

average of 2,500 to less than 500 people and well above 5,500 people.7

7. The increased financial resources and the new institutional framework offer new

opportunities for villages to invest in larger, multi-year and multi-sectoral development

activities and strategies in alignment with village needs and local district and regional

development priorities. To access and use these financial resources the Village Head and the

village administrative apparatus are required to prepare six-year Village Medium-Term

Development Plans (RPJMDes),8 annual Village Development Plans (RKPDes), annual Village

Budgets (APBDes) and annual financial reports in consultation with community members. The

district government is also required to review and endorse the annual village budget. In contrast to

previous village development activities, which were fragmented across multiple sector programs

and/or tended to by-pass local government planning processes, the Village Law enables villages

to: (a) make larger multi-year investments—for example, instead of one-off sub-projects of around

IDR 150-200 million (US$10,000-15,000), villages can plan larger multi-year activities; (b)

address development problems that require investments across multiple sectors—for example, the

National Strategy for Accelerating Stunting Prevention supports villages to invest in the health

(maternal health and community growth promotion activities), water and sanitation, early child

education services as well as strengthens village leadership and capacity to oversee convergence

of these multi-sectoral services;9 (c) finance a wider variety of investment types—in additional to

infrastructure investment, villages have more scope to inject capital into village-owned enterprises

and manage village assets for village development purposes; (d) align village investments with

local district and regional development priorities; and (e) ensure synergies across a wider variety

of activities.

8. These investment opportunities have opened new “pathways” for villages to address

Indonesia’s gaps in rural infrastructure, jobs and human capital as well as rural connectivity

and digital inclusion, and thereby contribute to poverty reduction and future economic

growth. For addressing remaining infrastructure gaps, improving local services to reduce stunting,

managing natural resources and disaster risks, or improving local economic development, villages

occupy the key position where government meets the community. Playing this role effectively

depends on how well villages can identify their priority needs, and then convert increased financing

into investments and services that effectively meet those needs. In turn, this depends on the capacity

and incentives of the village government to work with the community, as well as with higher levels

of government, to plan, budget and implement village development. Village government capacity,

accountability, and incentives to perform will be a key determinant of the Village Law’s impact.

These still relatively early days of Village Law implementation are a key window of opportunity

7 An average village in Indonesia has around 2,500 people or 500-600 households. However, about one-third of

villages have less than 500 people or 100 households (generally in Eastern Indonesia and other more remote

locations) and about one-third have more than 5,500 people or 1,000 households. 8 The six-year RPJMDes is aligned with the Village Head election cycle; that is, Village Heads are required to

prepare the development plan within one year of their election (or re-election). Village Heads must be a resident

in the village and can be re-elected three times for a total 18 years. 9 See results area 4 of the Investing in Nutrition in Early Years (P164686)

10

for national government to set policies and make large-scale investments to strengthen villages –

both governments and communities – to use their expanded transfers effectively.

9. There are some early signs that some villages are taking advantage of these new

opportunities with the number of “independent villages”10 increasing from 2,894 (3.9 percent)

to 5,559 villages (7.6 percent) and the number of “left-behind villages” declining from 19,750

(26.8 percent) to 13,232 villages (17.9 percent) between 2014 and 2018.11 The government

Village Development Index (IPD) is one attempt to measure village development progress

holistically, albeit one that is imperfect and requires improvements.12 The index consists of five

core components and is based on 42 composite indicators from the Village Potential (PODES)

survey, which is a village census that the Central Statistical Agency (BPS) conducts every 3-4

years. The five components are basic service delivery facilities, village infrastructure conditions,

transportation and accessibility, general services and village administration. The overall index

score increased from 55.7 to 59.4, with most gains coming from improvement to village

infrastructure conditions and village administration. Unsurprisingly, the majority of “left-behind

villages”, which score low on the index, are in Papua, Maluku and Kalimantan as well as pockets

of Sumatra, Sulawesi and NTT.

10. There are also tentative signs that rural poverty reduction is accelerating after three

years of stagnation, although it is too early to know whether this will be sustained, and it is

difficult to directly link this to village investments. The official government statistics on poverty

concluded that rural poverty declined only marginally from 14.2 percent in 2014 to 13.9 percent in

2017. However, as noted above, in March 2018 it recorded the largest year-on-year decline since

March 2011 with the poverty rate for the first time decreasing faster in rural than urban areas. This

is partly the results of a recent expansion in social assistance programs and buoyant labor market

conditions, and some in government have argued that increased financial resources for villages,

which reached the full allocation in 2017, contributed to the decline rural areas.13 Box 1 below

illustrates how one village took advantage of the new village funds to dramatically improve its

ranking on the index and reduce poverty in the village.

11. However, most evidence indicates that most villages have stuck with “typical”

investment strategies that will only contribute marginal improvements to their IPD score and

are unlikely to create new economic opportunities, increase human capital and transform

livelihoods. The Village Public Expenditure Review (ViPER), which the World Bank conducted

in 2016, found that villages spent almost 40 percent of their budget on village administration, 38

percent on village infrastructure, and very little on health, education and livelihoods.14 The

10 The Government of Indonesia has developed a Village Development Index, classifying villages as

“independent”, or advanced development, “developing”, and “lagging”. The index is updated annually, and draws

on 42 composite indicators, with 117 specific indicators, including measurements on five dimensions: basic

services, infrastructure, transportation, public services and governance. 11 The survey was conducted in May 2018, and therefore it covers three effective years of increased financial

resources for villages, i.e. 2015, 2016 and 2017. Villages usually receive the first tranche of fiscal transfers around

March-April and most activities occur in the second half of the year. 12 FN on our views on its general robustness. 13 Santoso & Sandy Maulana (2017) On Constructing Village Fund Impact Evaluation Model (Paper presented at

FKP seminar session– Article 33). 14 World Bank, 2016 Village Expenditure Review (ViPER), 25 August 2017.

11

government’s monitoring data indicates similar patterns in more recent years. The Ministry of

Villages reported that in 2017 spending on village administration had declined to around 30

percent, village infrastructure had increased to almost 60 percent, and spending on human capital

and economic empowerment remained very low.15 Furthermore, systematic qualitative research

indicates that although the quality of individual infrastructure sub-projects are satisfactory overall,

villages tend to simply divide up development spending relatively evenly between hamlets within

a village.16 This results in small and fragmented investments (e.g., small-scale infrastructure sub-

projects or, worse, “beautification” sub-projects), which have little impact on economic growth and

poverty reduction.

12. Villages have not yet realized the potential of the Village Law because of variation in

village leadership, participation and citizen engagement, management and technical capacity,

and incentives to take advantage of the new investment opportunities. Global empirical

research and operational experience relating to local governance and community-driven

development (CDD) emphasize that capacity building through incentives for public sector workers,

improved selection processes and top-down and bottom-up accountability mechanisms are

effective in improving local governance and strengthening development outcomes. Community

participation and citizen engagement can also play a contributing role. Across potential

interventions costs of implementation should be weighed against evidence of impact, with attention

given to lowering investments in less proven interventions.17 For example, reducing investments

in traditional capacity building face-to-face training and education that have variable impact-

records. As summarized in Box 1 below, these factors are all relevant to understanding village use

of the new funds and community development outcomes more generally. Many villages are unable

to envisage and oversee more complex village investment plans, because they lack the requisite

capacity for comprehensive planning, lack basic information on village needs as well as more

complex information on regional development plans, lack access to technical service providers that

15 Ministry of Villages, Program Achievements: Village Development 2014-2018, 5 March 2018. 16 On infrastructure quality, see World Bank, Indonesia Village Law: Evaluation of Infrastructure Built with

Village Funds, October 2018; on village planning, see Sentinel Villages study. 17 World Bank, Building Village Governance Capacity: Literature Review, November 2018.

Box 1: The potential for villages to use the village funds to make transformative investments – the

experience Panjalu village in West Java

Panjalu Village in Ciamis, West Java, which has a population of 12,600, transformed its infrastructure, services

and livelihoods over the past seven years. In 2011 the village was classified as “disadvantaged” but by 2018 it

was classified “independent, with most of the gains coming in the past years with the increased village financial

resources.

To achieve this the village adopted a multi-year development plan that directed the village funds to implement

various fields of development that are mutually supportive: infrastructure for education, health, economy, tourism,

and increasing human resources as well as addressing horizontal conflict among villages and creating

opportunities for village youth.

The village collaborated with neighboring villages and other stakeholders in economic activities, especially in

managing forest and agriculture to maintain spring water for local bathing, washing, latrines, and to upgrade the

tourism and market facilities. With this multi-year planning system, the village succeeded in generating additional

revenue, which now stands at IDR 1.4 billion (US$96,550) and is more than twice what the village receives from

the central government village transfer.

12

could help them implement the plans if they wanted, and lack incentives and community demand

to embark on more ambitious development plans.

13. The challenges of enabling villages to invest effectively is compounded by the scale of

the country and variation in the situation of Indonesia’s 75,000 villages. Given the size and

variation across Indonesia’s 75,000 villages, approaches to support villages must be adaptable,

flexible and demand driven. Current systems of support are often “one size fits all” and supply

driven, addressing village needs with a uniform approach. This not only creates a gap in the services

for village development, but also results in inefficiencies in government expenditures towards

villages. There is no uniform solution that will resolve all problems and ensure all villages take full

advantage of their new investment opportunities in accordance with their local needs and priorities.

For some villages, the challenge will be leadership and not technical capacity, for other

administrative capacity and not incentives, and for others the problem may not be village itself but

the sub-district or district government.

Institutional Context

14. The central government as well as provincial and district governments realize villages

require support and have since 2015 financed various programs and systems to improve

coordination, village administration, village development and community empowerment, and

increase accountability. As summarized in Figure 1 below, the government spends approximately

IDR 9.6 trillion (US$715 million) per year on support to, and oversight of, villages. This is spread

across three levels of government. The central government spends approximately IDR 3.2 trillion

(US$239 million) or 33 percent of the total amount, although most of this is executed by provincial

governments via deconcentrated financing (Dekon). Provincial and district governments spend an

estimated IDR 1.9 trillion (US$141 million) and IDR 4.5 trillion (US$335 million) respectively,

which works out to be about (US$4.1 million) per provincial government and IDR 11.2 billion

($770,000) per district government. These sums are significant and amount to approximately

US$9,000 per village or approximately 10 percent of the amount villages themselves are spending

on village administration and investment.

Figure 1: Annual Government Expenditures for Village Law (2018)

13

Box 2: Local Governance and Community Development –A Summary

Capability Global Literature & Indonesia Assessments

Capacity-

building via

selection and

screening

Selection and delegation of tasks to higher-skilled workers at the village level can

create significant improvements in governance outcomes (Casey et al 2018).

Selecting more skilled, competent, and motivated individuals, governance outcomes

can be improved significantly (Finan 2017).

Designing selection methods that attract officials with higher intrinsic motivation is

a promising approach to improving governance outcomes (World Bank Group WDR

2017)

Capacity-

building via

training

(Indirect evidence via community) The 2017 World Development Report lists some

examples of research on the training of members of the community but lacks evidence

about training of government employees or service providers: Duflo et al found that

schools in Kenya could reduce capture (by civil service teachers) by training parents

in the community (Duflo et al 2015).

Ex post evaluations of capacity-building efforts supported by development partners

have been very critical, especially with regard to a focus on training relative to other

dimensions of capacity” (World Bank, 2017).

Performance-

based

Management via

Incentives

Financial incentives are important for improving governance outcomes, despite

consistent concerns among experts that higher financial incentives could discourage

performance by selecting against intrinsically motivated workers (Finan 2017).

Consider tools that provide incentives, such as pay-for-performance schemes.

Randomized evaluations of these schemes in the context of the frontline provision of

public services find that the performance of public officials in fulfilling their tasks

improves” (WDR 2017).

In Indonesia, incentive-based block grants delivered to villages based on performance

in health and education indicators led to significant on health indicators (.04 standard

deviations) – especially malnutrition rates – and bigger gains for those villages that

started worse off (they report no gains in education and muted gains in health over time)

(Olken, Onishi, Wong 2014)

Top-down

Accountability

Examples, such as inspections by higher subnational agencies, has mixed but mostly

positive evidence in its support. Monitoring can improve outcomes via multiple

channels: (i) Monitoring can enable performance-based management (rewards or

punishments based on observable outcomes); (ii) Monitoring can act as a deterrent; (iii)

Monitoring by higher agencies can deter officials from colluding in policy capture

and generate useful information for third parties interested in preventing capture.

When results from top-down monitoring are made available to the public, it enables

important bottom-up accountability via citizen pressure. (WDR 2017, Finan 2017)

The WDR adds that despite the strong evidence for results from effective monitoring,

that monitors themselves are not immune to capture.

Audits, for example, have been shown to reduce leakage in village-level public

investment programs (Olken 2007)

Bottom-up

Accountability

via Community

Monitoring,

Participation and

Citizen

Engagement

(evidence from

Indonesia and

India)

A cautious approach toward the use and interpretation of score card initiatives is also

recommended, as these attempt to employ citizen satisfaction as a close proxy for

actual quality of services, in nonrandom samples, and without controlling for other

factors. (Lewis and Pattinasarany 2009).

Participants in civic activities tend to be wealthier, more educated, of higher social status

(by caste and ethnicity), male, and more politically connected than nonparticipants

(Mansuri and Rao 2013).

At some point, the opportunity cost of participation must surely eclipse its

instrumental and intrinsic value. Finding that participation is a tax and associated

quotas for the poorest and most marginalized make it a particularly regressive one

(Casey 2017).

Technology In quasi-experimental evidence from India and Indonesia, electronic procurement

leads to quality improvements in infrastructure provision by facilitating entry from

more diverse and higher-quality contractors (though notably they did not find reduced

costs) (Lewis-Faupel et al 2016).

14

15. The quality of these support systems has improved over the past four years, however,

they are costly, their effectiveness is mixed and their efficiency is low. There are four core

areas—village administration, village development and community empowerment, inter-village

development and accountability—which are the responsibility of three main ministries: the

Ministry Home Affairs (MoHA), the Ministry of Villages, Disadvantaged Areas and

Transmigration (MoV) and the Ministry of Finance (MoF):

a. Administrative capacity support. MoHA, via the Directorate General for Village

Government Guidance, is responsible for village government and administration,

including village elections, village boundaries, village administration, village financial

and asset management, and village oversight. It implemented a large-scale cascading

training program for villages in 2015 and 2016 that trained almost all 75,000 villages

on core government tasks, including village elections and village administration as well

as village planning, budgeting and reporting for the increased village funds. The

approach was one-size-fits-all and used a traditional cascading delivery model, which

was arguably justified in the first years of Village Law implementation given the need

to provide basic information to all villages. More recently, the Directorate General has

focused on capacity building for sub-districts offices, although of implementation has

been weak because of limited resources. The Directorate General, like MoHA more

generally, tends towards a legalistic and technocratic approach to capacity building—

setting rules, explaining the rules, and demanding compliance—and focused on core

capacities to hold elections, disburse village funds, and account for financial inputs. It

has focused little attention on leadership and the “soft skills” of village government,

performance-based management and results-based accountability.

b. Village development and community empowerment support. MoV, via the

Directorate General of Village Development and Community Empowerment, is

responsible for Various programs, one-size-fits-all. Its flagship program is the Village

Development and Community Empowerment Program (P3MD), which built on the

CDD facilitation structure of the World Bank-supported PNPM project.18 At a cost of

approximately IDR 2.7 trillion (US$201 million) per year19, the central government

finances via provinces, the provision of 2,484 district-level technical advisers, 15,305

sub-district-level village facilitators (which includes 5,577 technical village facilitators

with engineering qualifications) as well as 19,851 local village facilitators that support

villages to prepare plans, budgets and reports. P3MD deploys traditional approaches to

implementation that focus more on augmenting capacity than building capacity. The

one-size-fits-all approach means there is often a misalignment between village

technical capacity needs and the support available. More recently, MoV has adopted

more innovative and less traditional approaches to capacity building. With support

from the World Bank, it launched a peer-to-peer learning and results-focused

knowledge exchange platform, the Village Innovation Program, which uses video and

knowledge exchange hubs to inspire, incentivize and empower villages to innovate in

18 The government’s Village Law to PNPM Transition Strategy, which ran from 2015 to 2016, saw inter alia

approximately 14,000 district, empowerment and technical facilitators transition from PNPM to supporting

villages to prepare village plans and budgets. 19 Based on 2016 budget allocations

15

how they use their villages funds for infrastructure and human capital. MoV has also

recently established Village Academy 4.0, which it aims to develop as an online

learning platform for courses on village business development.

c. Inter-village development support. MoV is also responsible for inter-village

development, via the Directorate General for Inter-Village Development, and with

some programming for villages dispersed within other Directorate Generals. These

DGs have smaller, more niche programs focused on piloting methods and approaches

to encouraging inter-village development cooperation and aligning village

development plans with regional development priorities.

d. Accountability systems and support. MoHA, MoF and the Supreme Audit Agency

(BPK) as well as district governments all play important roles in the village

accountability system. BPK has ultimate audit authority but has narrowed its focus to

the disbursement of the fiscal transfers from district to villages, MoHA supports

district-level Inspectorates to conduct financial audit of villages and supports

accountability via its role in village elections, and MoF accounts for use of the fiscal

transfer to villages from the central government (Dana Desa). These accountability

systems are heavily input-oriented and there has been relatively little focus on results.

That began to change after the President as well as Parliament begun to demand

information on how the village funds were being used, questions that the input-oriented

reporting and audit systems could not answer. This prompted both MoF and MoV to

establish systems for the collection and compilation of village output data.20 However,

both systems have tended to focus on pulling data up to Jakarta for central government

accountability purposes (i.e. to cabinet and parliament). And there has been little focus

on enabling districts and village—let alone the general public—to access and use this

data for public accountability and local planning purposes.

16. One overall weakness of the support systems is that they make little use of new

technologies for teaching, knowledge sharing and accountability. The administrative approach

to capacity building is overall reliant on expensive and ineffective top-down cascade training

systems. New opportunities in technology-based innovations, coupled with Indonesia’s rapid

digital infrastructure expansion, present potential to expand more flexible, adaptive and demand

driven service delivery. The Village Innovation Program, although innovative and operating at a

scale rarely seen, is still reliant on face-to-face knowledge exchange and learning, and does not

fully maximize online peer-to-peer knowledge platforms. Despite MoV’s “market place approach”

to technical service provision, it has yet to tap the potential of online platforms for matching the

demand and supply of technical service needs. Similarly, the approach to accountability is strictly

hierarchical and focuses on extremely “long paths” of accountability rather than “short path” direct

accountability. These online and digital systems can support a more cost-effective and efficient

system of connecting villages in innovation exchanges and to access services.

20 MoF also recently incorporated a results-oriented scorecard in relation to the National Strategy to Accelerate

Stunting Prevention into its latest ministerial regulation on Dana Desa Reporting (PMK /2018). This was a

Disbursement-Linked Result (DLR) for the Investing in Nutrition and Early Years (P164686) PforR Program.

16

17. It is also critical that the support systems more systematically help districts to do

capacity building and empowerment differently. In general, government entities involved in

implementing the Law include: (i) DPMD, under the MoV, which is responsible for village support

and supervision at both the provincial and district levels; (ii) the District Finance Office (Badan

Keuangan dan Asset Daerah, BKAD) which is responsible for disbursing Dana Desa to villages;

(iii) the district-level Local Inspector, which is overseen by MoHA; and (iv) the District Planning

Agency (Badan Perencanaan dan Pembangunan Daerah, BAPPEDA). At the sub district

(kecamatan) level, the Technical Guides for Village Government (Pembina Teknis Pemerintahan

Desa, PTPD) play a coordinating role in village governance and development. One key challenge

for districts is that, while roles and responsibilities vis-à-vis villages have increased with the

introduction of the Village Law, districts have not seen a commensurate increase in budget or fiscal

transfers to effectively manage these responsibilities.21

18. Finally, national coordination of the support system is weak. Currently, Kemenko PMK

plays a coordinating role between institutions and ministries related to the Village Law. This brings

together relevant line ministries to regularly discuss policies, regulations, and issues related to

implementation of their respective Village Law functions. Despite effectively bringing together

ministries, however, the coordinating function is ad hoc, and lacks the institutional mandate to

effectively enforce decisions reached as a part of the coordination meetings. This issue is

exacerbated by the fact that several key line ministries to not fall under the coordinating mandate

of Kemenko PMK (e.g. MoHA). BAPPENAS’s planning functions related to Village Law are well

structured and oversees both MoHA and MoV under a single department, but this lacks the

analytical and technical capacity needed to effectively oversee and monitor implementation of key

activities related to Village Law. Finally, there are currently no systematic engagement with the

private sector, which has an important role to play in supporting villages with technical services at

the local level.

C. Relevance to Higher Level Objectives

19. The proposed Project contributes to the World Bank Group’s Country Partnership

Framework (CPF) for the period 2016-2020. The 2016-2020 CPF identifies three pathways for

poverty reduction and shared prosperity: job creation; service delivery and opportunities for all;

and natural resource management. The CPF is structured around six Engagement Areas and two

Supporting Beams. The proposed operation supports Engagement Area 4: Delivery of Local

Services and Infrastructure, and Supporting Beam II: Shared Prosperity, Equality and Inclusion.

Under Engagement Area 4, it is consistent with Pillar 1: Strengthening the decentralization

framework to improve local service delivery, and Pillar 2: Supporting the delivery of quality

education and health services, water and sanitation in rural areas to directly address inequality of

opportunity. Under Pillar 1, the proposed operation is consistent with several of the pillar’s

strategies, including strengthening the capacity of central government to support and oversee local

governments, strengthening the capacity and functions of local governments to deliver local

services, supporting citizens to monitor local service delivery, and establishing a performance-

based fiscal transfer system. Under Pillar 2, the proposed operation is consistent with the Bank’s

21 District Assessment; District expenditure review

17

approach to supporting local implementation of national programs, such as the Village Law of

2014.

20. The proposed operation also supports the government’s National Medium-Term

Development Plan (Rencana Pembangunan Jangka Menengah Nasional, RPJMN) 2015-2019,

and contributes to the Government’s Nawa Cita Strategy that aims to narrow the gaps in

poverty and development in Indonesia’s lagging regions. The Government’s Nawa Cita

Strategy (the administration’s mission statement) and RPJMN 2015- 2019 identify priorities and

goals for reducing poverty and inequality. Nawa Cita includes a strong emphasis on developing

Indonesia’s lagging regions and on improving governance and accountability in the public sector.

Transfers to villages, as mandated by the Village Law, are one of the major instruments through

which the GoI is pursuing the administration’s vision of “building Indonesia from the periphery.”

The RPJMN aims to boost overall development with specific emphasis on achieving a competitive

economy that is based on quality human capital, optimum natural resources management, and

improved technological capacity. The plan sets out national targets for achieving stable economic

growth (with a growth target of 6-8 percent per year), accelerating poverty reduction (with a

poverty rate target of 6-8 percent by 2019), and reducing disparities and inequality (with a Gini

coefficient target of 0.36 by 2019). The RPJMN includes three pillars: (i) developing a national

social protection system, (ii) improving service delivery for the poor and vulnerable, and (iii)

promoting sustainable livelihoods for the poor.

21. The proposed operation also supports the Government’s climate policy objective of

strengthening social resilience to climate change at the village level. Adapting to the impacts of

climate change is a high priority of the GoI. The country’s first Nationally Determined

Contributions (NDC) document articulates a clear climate policy objective of reducing risks from

climate change on all development sectors by 2030 through local capacity strengthening, improved

knowledge management, convergent policy on climate change adaptation and disaster risks

reduction, and application of adaptive technology.22 As climate change impacts are experienced

locally, achieving these policy objectives calls for strong engagement of local governments and

villages. The proposed operation will contribute to achieving these objectives at the local level by

promoting climate-resilient village development planning and spending, facilitating peer-to-peer

exchange of climate-resilient village innovations, and building climate awareness and preparedness

of systems for service delivery to villages in climate-sensitive regions.

2. PROJECT DESCRIPTION

2.1 Theory of Change

22. The Project will support GoI to develop and roll out new and reformed systems of

implementation support for village institutional strengthening, with the objective of improving the

quality of village spending and thereby contribute to an accelerate in rural poverty reduction and

village development. The overall results chain from project inputs to the higher-level objectives is

summarized in Figure 2 (below). It consists of three parts: first, how the project components will

22 Government of Indonesia (2016), Indonesia’s First Nationally Determined Contributions submitted to the

UNFCCC

18

change the village support system; second, how an improved village support system will lead to

better village investment outcomes; and finally, on the pathways through which village investments

can contribute to poverty reductions and economic growth.

Figure 2: Overall Project Results Chain

23. The project investments will focus on developing and supporting the roll out of more

adaptable village support systems that strengthens village governance and development in

according with local institutional needs and development opportunities. The Project will focus

on reforming and improving systems through investments in four sets of activities:

a. National results-oriented leadership and coordination. The Project will strengthen

national leadership and coordination through investments in consolidating, analyzing

and using data to drive national policy making relating to the Village Law and its

support systems.

i. Technology-driven delivery systems. The Project will leverage technology to

reform business processes and improve support systems that promote

innovative and cost-effective learning, in particularly by that will (i) change

accountability in the delivery model; (ii) better match supply of support

services with village demands and needs; and (iii) collect and better use data.

Box 2 below summarizes how the Project will use innovative digital solutions

to drive improvements in the support system and establish a village-focused

platform for transforming rural service delivery (for more details see Annex 1).

b. Roll-out support in priority locations. The Project will also support the phased roll-

out of these new support systems and services in a phase manner in priority districts

(see below for more information on the project phases and priority locations.

c. Performance incentives. The project will also invest in designing, testing and rollout

out village performance system that strengthens villages incentives to adopt and realize

these new adaptive support systems.

Strategic investments in

leadership, technology, roll-

out and performance

incentives

Adaptable village support systems aligned

with village needs

Villages realize improved quality of spending

Greater rural poverty

reduction

19

24. As summarized in Figure 3 (below), these the development and rollout of these systems are

expected to improve cost effectiveness in supporting village institutions and development and

realize efficiency gains in government spending.

Figure 3: Project Theory of Change

Box 3: Driving innovation in service delivery through digital solutions

Indonesia is currently undergoing a digital transformation, with rapidly expanding information and

communication technologies (ICTs). In 2017, Indonesia recorded 143.26 million internet users1, or 53 percent

of the population, representing a 30 percent increase since 2015. As digital infrastructure and connectivity

continues to improve, there will be growing opportunities to harness digital solutions to improve service

delivery. For example, digitizing back end service delivery—such as integrating e-learning systems or

digitizing human resource management functions—has the potential to improve efficiencies, cut costs, and

improve oversight within government systems. Further innovations in digitally based solutions can also

empower citizens and communities.

Global innovations to link end users with services through a platform-based approach, whereby the

government acts as a facilitator or a coordinator of citizen-to-market, or peer-to-peer interactions, allows for

citizens and communities to connect directly with the people or services that they need. Given the size and

scale of solutions needed to effectively cater to the needs of Indonesia’s 75,000 village institutions, digital

solutions have the potential to provide effective support to villages. Digital systems and approaches will be

pilot tested under the Project, with a view to learn and scale up, and with significant resources in place to

support villages, districts and provinces to best adapt to and adopt these solutions.

20

25. With support systems and fiscal transfer systems aligned, villages will be able to

realize improved quality of spending. Improving the quality of spending at the village level

depends on four factors: institutional capacity, timely information; adequate fiscal resources, and

incentives to encourage good spending. The project’s interventions will lead to improved

institutional capacity, including core administrative capacity of village governments for more

efficient and sophisticated planning, and necessary technical and capacity support to villages in

line with village needs. Information systems will be integrated and strengthened, and innovative

platforms for knowledge and innovation exchanges will further strengthen improving information

flows, ideas, inspiration and the enabling environment. Incentives and results will be strengthened

as a result of investments to improve support systems for participation, accountability and

improving knowledge and will pilot test performance grants for village governments. Thus,

systems improvements will help to align with significant fiscal resources to improve quality of

spending at the village level.

26. Improved quality of spending is expected to improve village investments resulting in

contributions to rural poverty reduction. Three types of typical village investments could

contribute to poverty reduction. First, improved capacity and accountability of village institutions

would result in decisions over infrastructure investments that better align with village needs.

Strategic infrastructure investments also have the potential to unlock local economic development,

align better with district level planning and investments to maximize impacts, and support

community labour for direct poverty benefits. Second, village investments in human capital would

support closing urban-rural gaps in access to early education and health services and create

economic value for villages through investments in skills and knowledge. Finally, improving

quality of spending is expected to result in investments in physical and digital connectivity, that

have the potential to drive economic empowerment and reduce poverty.

2.2 Project Development Objectives

PDO Statement

27. The proposed Project Development Objective (PDO) is to “strengthen Institutional

capacity for improved quality of spending in participating villages”. This will be achieved through

investments that improve and modernize support systems that build capacity of village institutions,

enhancements to and integration of information systems, and aligning these to increase with fiscal

transfers to focus on performance and results.

PDO Level Indicators

• Village institutional capacity for improved transparency and accountability is

strengthened (percentage)

• Beneficiaries feel that village investments meet their needs (percentage, by gender)

• Village governments participating in the performance-based incentive see improvements

in quality of spending (number)

21

2.3 Project Components

27. Project approach. The Project will support the GoI to develop and roll out new systems

of implementation support for village institutions, with the objective of improving the quality of

village development plans and programs. This will be achieved by: (i) supporting the design of new

systems and approaches for capacity building, knowledge sharing, technical assistance, and

learning that are adaptable and demand driven; (ii) focusing on aligning results in improved

performance with incentive mechanisms; and (iii) strengthening the village information and data

systems through digital solutions that improve monitoring and evaluation of village performance

(including procurement and payment transactions), as well as promoting the use of data in planning

and budgeting at the village level. Taken together, these interventions will support village

institutions to better access the support systems they need to improve quality of spending.

28. Project financing vis-a-vis government expenditures. With the enactment of Village

Law in 2014, village governments have seen significant increases in budget allocations, as well as

expanded roles and responsibilities for local development. In 2018, fiscal transfers to villages

amounted to around US$8.4 billion. In addition, the GoI supports the implementation of Village

Law through various line ministries and Government programs with an estimated US$715 million

annually. However, these existing support services are currently not leading to high quality

planning or village government expenditures that fulfil higher level objectives of poverty reduction,

and pro-poor, impactful and climate resilient village development. The Project will target

investments of US$350 million over five years to improve the GoI’s implementation support

systems and processes to become more flexible and adaptable to the varied needs of its villages, as

well as more efficient, cost-effective, and demand driven. This support is expected to transform

support to villages by better linking village institutions with capacity support structures and

information systems, and to align these with the right incentive mechanisms. The Project will

leverage expected GoI expenditures on capacity building programs through designated line

ministries of around US$403 million over the project period (see table below). These contributions

are expected based on existing expenditure patterns and government programs for improved village

capacity. In addition, the Project is expected to influence the broader support system to villages,

and interventions under the project would support development of systems that would positively

enhance and improve village planning and spending. All told, the Project will influence an

estimated US$42.5 billion in GoI spending over the project period.

Table 1: Expected GoI Contributions to Project Activities (2019-2024)

IDR (billion) USD (million)

National Budget (ABPN) 2,610.0 180.0 (*)

Provincial Budget (ABPD 1) 145.0 10.0

District Budgets (APBD) 1,087.5 75.0

Sub-district 217.5 15.0

Village Government 1,740.0 120.0 (**)

TOTAL 5,800.0 403.0

Estimated expenditures are based on existing budget allocation patterns and are calculated as those that

are directly relevant to the project’s activities, including capacity building activities and training programs

that exist already and could be leveraged as a part of the project activities. These estimates do not include

government staff salaries, or operational costs for government departments.

(*) including the portion of the national budget currently used to fund village facilitators (TPD) and

experts in districts and sub-districts for community empowerment, an estimate of the portion of the TPD

for capacity development assistance, of which 15% is used for capacity building assistance (**) Village

22

APBDesa portion used for capacity building activities are estimated at less than 1% of all village APBDes

values.

29. Project Components. The Project is organized in four components, which together

comprehensively support the development of systems and approaches, as well as their roll out and

adoption, for improved Village Law implementation. Implementation of these systems and

approaches are expected to lead to improved efficiencies in government expenditures These will

improve delivery systems for institutional strengthening, strengthen mechanisms of oversight and

coordination, and align incentives for improved quality of spending. MoHA, with a mandate for

supporting sub-national government institutions, will be the lead executing agency for the Project,

and will be directly responsible for Components 1 and 3 of the Project. These components will

focus on improving institutional strengthening systems for village governments, as well as pilot

testing incentive mechanisms for improved village government performance. MoV, with a mandate

to support village development, will participate in the Project by overseeing Component 2, which

aims to strengthen community empowerment and improve social accountability within village

development processes. The Ministry of National Development Planning/ National Development

Planning Agency (Badan Perencanaan dan Pembangunan Nasional, BAPPENAS) will implement

Component 4 of the Project, with the objective of improving coordination, monitoring and

oversight of the implementation of the Village Law.

30. Component 1: Strengthening Village Government Institutions (IBRD US$185

million). The objective of this component is to improve the institutional strengthening system for

village governments (apparat) within MoHA, and to support the rollout and adoption of these new

tools and approaches. This will be achieved by supporting the development of a capacity building

platform for village governments that is flexible and adaptable, to address the varied capacity needs

of village governments. This component will also support the rollout of this platform through the

sub-national government institutions, providing an opportunity to leverage existing support

systems and further strengthening and aligning these to better support village governments. The

Project will finance (i) the design of a digital learning platform within MoHA to integrate content

and deliver cost effective and efficient capacity building support to villages; (ii) the development

of expanded content and tools (e.g. animation videos, e-learning, blended learning, distance

learning, and other tools), as well as technical manuals, guidelines, modules and supporting

instruments to bolster administrative capacity; (iii) rollout of a revised institutional strengthening

program through sub-national governments, including support to adoption and transition of these

systems, improved coordination and oversight, and alignment with sub-national spending and

programs on capacity building; and (iv) support to upgrading MoHA’s village level data systems,

management information systems (MIS) and integration of monitoring and performance

measurement systems. This component also provides an opportunity to improve the quality of

village planning and development by mainstreaming training, capacity building, and technical

guidelines to improve social and environmental standards, awareness of climate change hotspots

and impacts on village livelihoods and potential responses to be integrated in village plans,

strengthening inclusion and participation in planning and budgeting, and upgrading and supporting

best practice in procurement systems. This component will also support village financial

management through strengthening current reporting systems and supporting capacity building for

oversight and supervision functions of the district and sub-district through the learning platform.

23

31. Component 2: Promoting Participatory Village Development (IBRD US$95 million).

The objective of this component is to strengthen systems of capacity support and village

development within MoV. Strengthening these systems will leverage the existing facilitator

structure under MoV, which currently supports around 37,000 facilitators, including 14,000 field

level facilitators, across the country, as well as several other programs within MoV to support

community empowerment and village development. These programs will be supported to be more

flexible and adaptable to better respond to needs, and to facilitate innovation and cross learning for

community capacity. This component will also put in place systems to improve support for

improving participatory planning and strengthening social accountability mechanisms. The Project

will finance: (i) improvements to community learning systems that aim to build capacity (e.g.

Akademi Desa 4.0), and peer to peer exchanges, such as village innovation forums (Bursa Innovasi

Desa), including creating and curating content and improving systems to better access and

distribute knowledge; (ii) digitization of the oversight and management systems for village

facilitators (P3MD), and integration of village level feedback on performance for improved

resource deployment; (iii) development of a digital platform (GoDesa) to integrate digital solutions

more effectively within MoV, and support to develop, upgrade and improve digital applications,

hardware and software systems (including a citizen portal with access to comparative information

and statistics about villages (e.g. poverty, health, nutrition, exposure to floods, droughts etc.); (iv)

digital marketplaces for technical service providers, and interactive chat portals (RuangDesa),

among others); and (v) testing of different innovations in village development, including digital or

smart villages, participatory tracking systems, etc.. Social accountability and participatory planning

systems will be strengthened through upgrading training content and guidelines for facilitators to

better support community participation in decision-making, and to ensure the contestability of

different fora for deliberation (e.g. facilitate MusDes, BPD, village meetings, needs assessments,

etc.). Technical assistance to support the development, testing and rollout of these systems will be

provided, as well as support to subnational management of facilitators for the first two years of the

Project. The subnational technical assistance will help monitor results more closely during

implementation to identify adjustments, as needed. The Project will not finance facilitator salaries,

incremental operating costs, training costs for facilitators, or travel and supervision costs.

32. Component 3: Strengthening Village Government Performance (IBRD US$50

million). The objective of this component is to pilot test a performance grant system that would

reward village governments according to key performance metrics of good governance. While

investments in Components 1 and 2 focuses on strengthening the institutional capacity of village

institutions (including village governments and communities), and in improving their capacity for

better governance, component 3 matches these supply side interventions by pilot testing a program

to measure and reward improved outcomes in village governance and quality of spending. A

performance assessment system will be established in Year 1 of the Project to capture simplified

metrics for village government performance; annual assessments will be carried out for

participating village governments, through a combination of a web-based system and in person

assessments. A proposed set of metrics, which will assess if and how village plans address issues

such as local economic development, exposure to and preparedness for climate and disaster risks,

and social and environmental standards etc., is provided in Annex 2 of PAD. This list includes

measurements to capture improvements in the quality of planning (i.e. more inclusive,

participatory, and climate-resilient), capture improvements in output and budget reporting, and

promote transparency and accountability. Participating village governments will be assessed in

24

Year 2 of the Project and will be evaluated against the agreed performance metrics and criteria.

Assessments would be conducted by the National Government Internal Auditor (Badan

Pengawasan Keuangan dan Pembangunan, BPKP), who would recommend qualifying village

governments to MoHA; MoHA would in turn work with the Directorate General of Fiscal Balance

(Direktorat Jenderal Perimbangan Keuangan, DJPK) under the Ministry of Finance, to release the

performance transfer to village government accounts via district governments. The performance

grant system will be pilot tested in 50 districts, or around 8,500- 9,000 villages.

33. Component 4: National Coordination, Monitoring and Supervision (IBRD US$20

million). The objective of this component is to improve and strengthen national coordination,

harmonization of regulations, monitoring, and supervision of village development. This will be

achieved through the establishment of an integrated information management system that offers

real time incorporation of key metrics for village development under a single information system

(InfoDesa). This information management system will draw on existing data collected through a

variety of government agencies, and will integrate these into a single platform, accessible via a

dashboard where data can be visualized by different levels of government through web and

application-based interfaces. Data to be integrated in this platform may relate to village poverty

status, income, health, nutrition, education, existing infrastructure, exposure to disasters and

climate-related hazards (e.g. droughts, floods, storms, coastal inundation, etc.), and community

assets at risk, land and forest fire hotspots and related greenhouse gas emissions, etc. Linkages to

existing real-time data bases (e.g. for disaster early warning, weather forecasts) and indexes (e.g.

climate vulnerability and food security indexes), which are relevant for village-level planning, will

be explored. The Project will finance the hardware, systems and technical assistance required to

establishing this integrated information system and will also ensure that the system contains the

data needed for decision making processes. This component would also finance the formal

establishment of a National Coordination Platform for Village Development. This platform would

be chaired by Coordinating Ministry for Human Development and Cultural Affairs (Kementerian

Koordinator Bidang Pembangunan Manusia dan Kebudayaan, Kemenko PMK), and would be

supported by a Secretariat under BAPPENAS, who would oversee the management and

coordination efforts, and the integrated information system. Finally, this component would support

evaluations, including impact evaluations, of the program’s interventions.

Project Cost and Financing

34. The total project costs are estimated at about US$ 753 million, which is to be financed

through an IBRD Loan of US$350 million. The GoI will contribute equivalent costs of an estimated

US$403 million in the form of expected budget allocations during the project period. These

contributions will be in form of incremental operating costs, cost of capacity building activities,

facilitator staff and management costs, and fiscal transfers to village governments.

25

Table 2. Project Costing by Component

Project Components Project cost IBRD

Financing % Financing

1.Strengthening Village Government Institutions

2.Promoting Participatory Village Development

3.Strengthing Village Government Performance

4. National Coordination, Monitoring and

Supervision

Total Costs

320.0

360.0

50.0

23.0

185.0

95.0

50.0

20.0

100%

100%

100%

100%

Total Project Costs

Front end fees

Total Financing Required

753.0

-

753.0

350.0

-

350.0

2.4 Project Beneficiaries

35. The Project is expected to primarily benefit communities across Indonesia’s75,000

villages. Investments in improved support services and capacity, coupled with community

empowerment and development, are expected to further strengthen participation in village

governance; and better serve the poor, marginalized, or groups that are otherwise excluded at the

village level. The Project is also expected to benefit village governments (apparatus) and

institutions (including village councils), by strengthening their capacity to execute their core

functions, thus leading to improved spending and service delivery at the village level. The Project

will also benefit local governments, especially subdistricts (kecamatan) and district governments,

by strengthening their capacity to support and supervise villages and village governments more

effectively. Nationally, the Project will directly benefit line ministries involved in providing

support to village governments, through improved regulations and systems, as well as through

improved coordination and oversight functions that will help better direct government resources

and spending towards villages. The Project is expected to cover all 75,000 of Indonesia’s village

governments over the five years of implementation.

36. The Project organizational structure is presented in Diagram 1 below, and the details are

presented in Annex 1. Chaired by BAPPENAS, the Project has a Steering Committee comprises of

various ministries and agencies at the national level. Main implementing agencies are MoHA and

MoV at the national level, and there are PIUs and Working Group at the provincial and district

levels. A Consultant team will assist the PIUs at the national level, provincial and district level.

Detail explanation of the project organizational structure and implementation arrangements is

presented in Annex 1.

37. The mainstreaming and strengthening of environmental and social sustainability

(ESS) aspects in the Project will be part of the activities of the project organizational

structure and implementation arrangements. For instance, strengthening the current manuals

and guidelines for the village apparatus on ESS aspects will be the responsibilities of the MoHA

(PIU), as MoHA has been responsible for such manuals and guidelines. Similarly, improvement of

the ESS aspects in the manuals, guidelines and training for the village community and village

facilitators will be in the MoV (PIU). Structure of responsibilities of ESS strengthening and

26

improvement will follow the current responsibility structure between the MoHA, MoV, the

provincial and district governments of the relevant tasks.

Figure 4: Organizational Structure of the Institutional Strengthening for

Improved Village Service Delivery Project

3. POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS AND RISKS AND

POTENTIAL MAINSTREAMING OF ENVIRONMENTAL AND SOCIAL

SUSTAINABILITY

3.1 Potential Impacts and Strengthening Areas

38. Given the nature of the activities explained above, Component 1, 2, and 4 will not

involve any physical investment or preparation of any plans that would lead to the

implementation of physical investment or activities involving downstream environmental and

social impacts and risks. Most Project activities involve establishment of a digitalized, IT-based

tools, development of e-platform and e-services for learning, capacity building, market place for

capacity services, knowledge management, harmonization and simplification of regulations,

oversight and monitoring, and integrated information and data-system management. Anticipated

potential environmental impacts would be in the form of electronic waste as consequences of the

expansion of the existing and/or purchase of information and communication infrastructure

required including hardware, software, design, and upgrading data centers. Expansion of the

existing and/or new installation of IT hardware would take place in the PIUs. With the introduction

of the digitalization using the information technology, the Project will promote social

transformation in the implementation system of the Village Law. This would be a challenge for all

stakeholders involved in the Village Law implementation, including the village communities and

apparatus, consultants, facilitators, sub-districts, districts, provincial and MoHA as well as MoV.

Table 3 (Indicative Key Strengthening Areas) provides the elements of mainstreaming

environmental and social sustainability aspects in the capacity building and institutional

strengthening system.

27

39. Although Component 1, 2 and 4 do not involve any physical investment or preparation of

any plans that would lead to the implementation of physical investment or activities involving

downstream environmental and social impacts and risks, the Project will ensure that improved

capacity of village government include awareness and capacity to implement environmental and

social sustainability (ESS) considerations, through mainstreaming the objectives, key principles

and requirements for environmental and social sustainability in reference to relevant Indonesian

laws and regulations and applicable World Bank Safeguards Policies as well as EHS Guidelines.

This would include among others, improvement of stakeholder engagements, inclusion of

vulnerable groups, Indigenous Peoples community, and gender as well as complaint handling

system into the new and improved village plan, village annual budget plan, guidelines, training

modules, terms of references for the facilitators and monitoring and supervisory team/unit.

World Bank Operational Polices applicable to the Project: objectives, key principles and

requirements

40. The following paragraphs describe the objectives, key principles and requirements to the

World Bank safeguards policies applicable to the Project along with the objectives and key

principles and requirements of the relevant Indonesian laws and regulations, which would be taken

into consideration to the extent possible as elements for the mainstreaming within the activities of

Component 1, 2 and 4 as specified in Section 5 and 6. Applicable World Bank safeguards policies

to the Project are OP 4.01 on Environmental Assessment, OP 4.04 on Natural Habitat, OP 4.36 on

Forest, OP 4.11 on Physical Cultural Resources, OP 4.10 on Indigenous Peoples and OP 4.12 on

Involuntary Resettlement.

41. Environmental Assessment (OP 4.01) - The purpose of Environmental Assessment (EA)

is to improve decision making, to ensure that project options under consideration are sound and

sustainable, and that potentially affected people have been properly consulted. EA is a process

whose breadth, depth, and type of analysis depend on the nature, scale, and potential environmental

impact of the proposed project. EA evaluates a project's potential environmental risks and impacts

in its area of influence; examines project alternatives; identifies ways of improving project

selection, siting, planning, design, and implementation by preventing, minimizing, mitigating, or

compensating for adverse environmental impacts and enhancing positive impacts; and includes the

process of mitigating and managing adverse environmental impacts throughout project

implementation. The Bank favors preventive measures over mitigatory or compensatory measures,

whenever feasible.

42. EA takes into account the natural environment (air, water, and land); human health and

safety; social aspects (involuntary resettlement, Indigenous Peoples, and physical cultural

resources); and transboundary and global environmental aspects. EA considers natural and social

aspects in an integrated way. The objectives, key principles and requirements of the ESS which are

governed under OP 4.01 serve as an umbrella policy for other safeguards policies applicable to this

Project, i.e., OP 4.04, OP 4.36, OP 4.11, OP 4.10 and OP 4.12. The policy also takes into account

the variations in project and country conditions; the findings of country environmental studies;

national environmental action plans; the country's overall policy framework, national legislation,

and institutional capabilities related to the environment and social aspects; and obligations of the

28

country, pertaining to project activities, under relevant international environmental treaties and

agreements. The Bank does not finance project activities that would contravene such country

obligations, as identified during the EA. EA is initiated as early as possible in project processing

and is integrated closely with the economic, financial, institutional, social, and technical analyses

of a proposed project.

43. Natural Habitats (OP 4.04) – This policy seeks to ensure that World Bank-supported

infrastructure and other development projects take into account the conservation of biodiversity, as

well as the numerous environmental services and products which natural habitats provide to human

society. This policy requires the conservation of natural habitats and specifically prohibits the

support of a project that involve significant conversion or degradation of critical natural habitats

which are either legally protected, officially proposed for protection, or unprotected but of known

high conservation value. In other (non-critical) natural habitats, Bank supported projects can cause

significant loss or degradation only when (i) there are no feasible alternatives to achieve the

project's substantial overall net benefits; and (ii) acceptable mitigation measures, such as

compensatory protected areas, are included within the project. The policy further requires the

environmental assessment to identify impacts on biodiversity and species and to determine

endemism, endangered species and to determine project impacts on these species and to propose

acceptable mitigation and monitoring measures.

44. Forests (OP 4.36) – The objective of this policy is to assist borrowers to reduce

deforestation, promote afforestation, harness the potential of forests to reduce poverty in a

sustainable manner, integrate forests effectively into sustainable economic development, and

protect the vital local and global environmental services and values of forests. Bank’s supported

project must not damage critical forests, should avoid or minimize damage to other forests and if

damage to non-critical forests is necessary and justified, it must be adequately mitigated, typically

through compensatory protected areas under the same project.

45. This policy applies to the following types of Bank-financed investment projects: (a)

projects that have or may have impacts on the health and quality of forests; (b) projects that affect

the rights and welfare of people and their level of dependence upon or interaction with forests; and

(c) projects that aim to bring about changes in the management, protection, or utilization of natural

forests or plantations, whether they are publicly, privately, or communally owned. The Bank does

not finance projects that, in its opinion, would involve significant conversion or degradation of

“critical forest areas,” or related critical natural habitats (CNH). As determined by the Bank, if

affected forest areas are “non-critical” the Bank may finance such a project if: (a) no feasible

alternatives to the project or site; (b) “overall benefits substantially outweigh environmental costs”;

and (c) project incorporates “appropriate mitigation measures.” The Bank does not finance projects

that “contravene applicable international environmental agreements.”

46. Physical Cultural Resources (OP 4.11) – This objective of this policy is to avoid adverse

impacts on physical cultural resources or to mitigate such impacts. This policy seeks to avoid the

disturbance and or destruction of PCR as defined by the policy by the projects’ activities. PCR

includes places of worship, buried artifacts, cemeteries and archeological assets, etc. The policy

further requires (i) an environmental assessment to pre-identify and locate PCR’s in the project

29

influence area, (ii) environmental management plan to propose management measures and (iii) to

include chance find clauses in civil works contracts during construction and maintenance stages.

On-site investigations and consultation with the people who value the physical cultural resources

are essential.

47. Indigenous Peoples (OP 4.10) – The objective of this policy is to ensure that development

process fully respects the dignity, human rights, economies and cultures of Indigenous Peoples

(IPs). The policy aims at providing culturally appropriate benefits and gender and

intergenerationally inclusive for the IPs. The policy requires the project to avoid potential adverse

effects on IPs and when avoidance is not feasible, minimize, mitigate or compensate for such

impacts. The policy requires the Government to engage in a process of free, prior and informed

consultations that results in broad community supports for the project in situations where IPs are

present in, or have collective attachment to, the project area and are affected (positive and negative)

by the project and for the preparation of an Indigenous Peoples Plan (IPP) including Social

Assessment (SA) and/or Indigenous Peoples Planning Framework (IPPF).

48. Special attention will also be given for IPs community under OP 4.10. Social sustainability

for Component 1, 2 and 4 will also include measures to enhance the inclusion of benefits to IP and

the delivery of culturally appropriate benefits through the strengthening of the existing systems and

tools (for instance, concerning training, capacity building, knowledge management, manual or

guideline, and M&E). The Project will consider include a more pro-active approach to IP inclusion

and development benefits through a more pro-active targeting of IP communities, additional

support (TA/PD) in areas with IPs, a broader menu of eligible investments for IPs, monitoring and

evaluation of IPs participation and benefits during project implementation. Results of Project

monitoring and evaluation will be used to improve the capacity building delivery (such as for the

PDs and village apparatus) and/or manuals tailored to the needs to increase IPs participation and

benefits.

49. Involuntary Resettlement (OP 4.12) – the overall objectives of this policy are: (a)

involuntary resettlement should be avoided where feasible, or minimized, exploring all viable

alternative project designs; (b) where it is not feasible to avoid resettlement, resettlement activities

should be conceived and executed as sustainable development programs, providing sufficient

investment resources to enable the persons displaced by the project to share in project benefits.

Displaced persons should be meaningfully consulted and should have opportunities to participate

in planning and implementing resettlement programs. Displaced persons should be assisted in their

efforts to improve their livelihoods and standards of living or at least to restore them, in real terms,

to pre-displacement levels or to levels prevailing prior to the beginning of project implementation,

whichever is higher.

50. This policy addresses direct economic and social impacts from the projects’ activities that

will cause (a) involuntary taking of land resulting in (i) relocation or loss of shelter, (ii) loss of

assets or access to assets or (iii) loss of income sources or livelihoods and (b) involuntary restriction

of access to legally designated parks and protected areas resulting in adverse impacts on the

livelihoods of the displaced persons. The policy requires siting of project infrastructure so to be

chosen to avoid these impacts altogether or to minimize them to the extent possible. Where these

cannot be avoided, the policy requires the preparation of either or both of these instruments (i)

30

resettlement policy Framework, (ii) Resettlement Action Plan, and for meaningful consultations

with potentially affected people. The policy prohibits community donations of lands for location-

specific infrastructure.

51. Environmental and social sustainability for Components 1, 2 and 4 will also include

among others, aspects of climate-resilience village, disaster management, labor and gender-

based violence management as well as the World Bank Guidelines on Environment, Health

and Safety. Principles and provisions of these aspects will be mainstreamed in the improvement

of the capacity building and institutional strengthening system of the Project, such as manuals,

guidelines, training modules, training delivery system, terms of references for TA, consultants

and/or facilitators.

52. Component 3, villages that are assessed to have met performance standards will

receive the incentives, which will be provided through on-granting mechanism to districts

currently estimated at about $10,000 per village. The eligibility for villages receiving the grants

is for (1) any sub-project that was not already financed but approved in the village development

plan; and (2) any sub-project that does not trigger anything from a negative list. The negative list

includes exclusion of any sub-project requiring land or assets attached to land, those affecting

physical and cultural resources, natural habitats or forests (refer to Section 7.1 on the detail of

negative list). The activities will be separate from other activities funded in the village plan (not

blended with the village budget), in other words, the grants will be used exclusively for activities

that will be financed only by the grants and will not co-finance any activities financed by other

source of financing in the APBDes.

53. Type of small scale activities at village level which is eligible to be financed under the

incentive mechanism will be an open menu against the negative list, among others: innovative

activity to strengthen local economic development, women empowerment of productivity, small

scale physical infrastructure (with negative list), small-scale innovative technology of water supply

facilities, disability inclusive facilities for school and early childhood center, and so on. The list of

proposed activities must be included in the annual work plan of a village (or Rencana Kerja

Pemerintah Desa), be consulted with communities and local institutions. The small-scale physical

investments, such as improvement and rehabilitation of existing community roads and bridges,

water supply, sanitation, drainage, as well as health and education facilities will be community-

based and community self-built and/or community’s-contractor built.

54. The project triggers OP 4.01 on Environmental Assessment for the activities to be financed

under Component 1, 2 and 4 for potential e-waste, and for Component 3 that might have potential

E&S impacts, however potential environmental and social impacts are insignificant, site-specific,

non-cumulative, non-irreversible, and can be managed by the community with some guidance by

the facilitators with the improved guidance and practical training that have mainstreamed

environmental and social sustainability aspects. Impacts are mainly taking place during

construction such as dust, placement of construction materials, generation of construction wastes,

water flow blockage, etc. Annex 9 SOP for Environmental Management serves as references for

environmental management of these types of civil works.

31

55. Although the performance grants will finance specific investments separate from other

village investments, the Project will identify any potential linkages to other village investments

and/or potential environmental and social impacts at the village level. Cumulative impact is not

envisaged. This will be identified during the sub-project screening and appropriate measures which

will be developed during the preparation of sub-project design to avoid or minimize impacts or to

address impacts.

56. It is clearly defined in the negative list of the Project (see Section 7.1) that sub-projects

under Component 3 shall not be undertaken in prohibited, critical natural habitats (including critical

forest, coastal and marine habitats), nor will it result in the significant conversion of natural

habitats. The activities will not affect the health/quality of forest or involve any forest management.

Identification of potential impacts with respect to impacts for instance, to natural habitats, pollution

events of aquifers, fatalities and injuries and loss of livelihood, etc. will be done during the sub-

project screening and avoidance will be addressed by the designs and alternative sites. The previous

experience with PNPM Rural and from the recent missions revealed that the location of the

proposed small-scale activities can be changed or rerouted should there are any concerns with

forestry and natural habitat aspects.

57. The list of proposed activities to be financed by the performance grants must be included

in the annual work plan and annual budget plan of a village (or Rencana Kerja Pemerintah Desa

and APBDes respectively). Local community who are consulted during the preparation of any

village plans (such as RPJMDes, RKPDes and APBDes) should be aware of the needs to consider

the negative list for the performance grants (which is part of the Guidance for the Performance

grants). The BPD who reviews and approves these plans should include the negative list for the

performance grants as parts of its considerations. District Environmental Agency (DEA) will have

to provide guidance to the village government and community on the negative list for the

performance grants during the preparation and implementation of the village plans particularly for

activities financed by the performance grants. In addition, the DEA should provide awareness and

capacity training to the PTPD (at the sub-district level) who guides the village governments in

preparing and implementing the village plans.

58. As the Project will cover villages in the districts that are geographically dispersed, IPs

presence and/or beneficiaries in some of the villages is anticipated. The Project expects that IPs

would be part of the village community who will benefit from the Project, particularly under

Component 3. Inclusion of IPs group to participate and benefit from the strengthening of capacity

building and institutional strengthening system by the Project under Component 1, 2, 4 will also

follow the provisions of the relevant Indonesian laws and regulations and World Bank OP 4.10 on

Indigenous Peoples.

Labor and Gender-Based Violence

59. The proposed Project Development Objective of the Institutional Strengthening for

Improved Village Service Delivery Project is to “improve the quality of village spending through

better village governance and development performance”. Financing for this project is expected

to help improve and strengthen institutional capacity, information systems and incentives to

improve the quality of village level spending.

32

60. The World Bank has specific guidelines for the protection of workers, prevention of

gender-based violence (GBV) and standards to manage poor labor conditions, and also prevent

child and/or forced adult labor. These guidelines include definitions of what are worker categories;

what are the labor standards to follow (safety, fair treatment, worker protection) among others.

Likewise, for gender-based violence, Bank guidelines define conditions under which women and

girls are likely to face harm due to project interventions. These are mainly, but not restricted to,

circumstances which arise from large civil works requiring labor influx (either from other countries

or other regions in a country). Large-scale civil works are known to increase GBV risks and

prevention measures must be established.

61. Given that the proposed Project is focused on capacity building and institutional

strengthening to improve local Government’s ability to plan, budget, and implement village

development activities; strengthen Government coordination to implement the village law; and to

improve the data collection, monitoring and evaluation systems, and also the Project only involves

small-scale activities financed by the village performance grants implemented through community-

based scheme, it is not expected that issues related to harmful labor practices nor risk of GBV

apply. To capture a wide range of grievances, the Project’s Grievance Redressal Mechanism will

be tailored to ensure a safe modality of communicating sensitive information using a variety of

methods. Attention to local cultural conditions including on gender norms will be given to ensure

the GRM in place is appropriate and resolution oriented. In addition, the Project will ensure that

improved capacity of village government includes awareness raising on inclusion of vulnerable

groups and gender and that such awareness programming is mainstreamed in learning modules,

village annual plans, guidelines, training modules, and terms of references for the facilitators and

monitoring and supervisory team/unit.

3.2 Institutional Capacity

62. The Implementing Agencies of the Project (PIUs of MoHA and MoV) are responsible to

ensure that environmental and social sustainability is mainstreamed in the Project23. Both agencies

have involved in the PNPM-Rural and are aware of the importance of environmental and social

sustainability aspects in the implementation of the Village Law. Nonetheless, capacity still needs

to be strengthened to ensure that environmental and social sustainability aspects as specified in

various manuals, guidelines, and training modules are consistently implemented. A World Bank

Study on the Evaluation of Infrastructure Built with Village Funds (2018) suggested that 74% of

the sampled sub-projects had been implemented using appropriate environmental safeguards

practices, but only 34% of the sampled sub-projects had correctly followed the social safeguards

mechanisms as stipulated in the Village Development Guidelines24.

63. To address the above situation, in addition to training provided to the PTPD and PD as well

as to the village apparatus with modules and training delivery that have mainstreamed

environmental and social sustainability (ESS), the Project intends to (1) strengthen the monitoring

and supervision activities by including monitoring indicators representing the inclusion of ESS

23 See Annex 1: Project Implementation Arrangements and Support Plan. 24 Peraturan Menteri Dalam Negeri No. 114/2014 on the Village Development Guidelines.

33

sustainability; (2) include the district environmental agency (DEA) to provide awareness and

capacity training to the district inspectorate, PTPD (at the sub-district level) on the ESS; (3) provide

guidance to the village government and community on the ESS and the negative list for the village

grants during the preparation and implementation of the village plans particularly for activities

financed by the performance grants; (4) include the ESS sustainability aspects in the monitoring

and supervision activities to villages carried out by the PTPD; and/or (5) include the ESS and the

negative list as part of the criteria for the performance grants.

4. OBJECTIVES OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT

FRAMEWORK (ESMF)

64. The objective of this Environmental and Social Management Framework (ESMF) is to

provide reference and guidance for the Project management and Project implementation staff at

national, provincial, district, sub-district and village levels, as well as consultants, facilitators and

community groups participating in the implementation of Village Law on

a. strengthening the objectives, principles and the requirements of the environmental and

social sustainability appropriately into the new and current instruments and approaches for

capacity building and institutional frameworks system such as guidelines, manuals, training

modules and deliveries for planning, budgeting, implementation, monitoring and

supervision of village sub-projects.

b. screening and identifying potential environmental and social safeguards impacts of the

physical investment financed by the village performance grants, type of instruments for

mitigation measures or documentation of the mitigation measures;

c. institutional arrangements for implementing the environmental and social sustainability

aspects in the Project; and

d. GRM, public consultations, disclosures, and capacity building plan

e. Monitoring

65. This ESMF is prepared with reference to the relevant Indonesia Laws and Regulations on

environmental and social sustainability, World Bank OP 4.01 on Environmental Assessment, OP

4.04 on Natural Habitat, OP 4.36 on Forests, OP 4.11 on Physical Cultural Resources, OP 4.10 on

Indigenous Peoples and OP 4.12 on Involuntary Resettlement as well as WBG Environmental,

Health and Safety Guidelines. This ESMF also outlines the Indonesian protocols and practices to

manage e-wastes.

5. ENVIRONMENTAL AND SOCIAL SUSTAINABILITY ASPECTS IN THE

CURRENT IMPLEMENTATION OF THE VILLAGE LAW AND DIRECTION

TOWARDS STRENGTHENING

66. Law No. 6/2014 and its implementing regulations stipulate the responsibility and authority

of the village among others, to develop and maintain infrastructure and environment in accordance

with its capacity and available local resources; to carry out environmental management of the

village; to promote inclusive development (including the poor, women, local culture, tradition,

customary community – including IPs) through participatory planning and monitoring; and to

promote disclosure and manage complaints.

34

67. Manuals and training modules. The implementation of the Village Law is guided by

various guidelines, manuals and training modules, issued by the MoHA and the MoV. Relevant to

environmental and social sustainability aspects are:

Guidelines:

a. MoHA Regulation No. 114/2014 on Village Development Guidelines

b. MoHA Regulation No. 20/2018 on Village Financial Management

c. MoV Regulation No. 2/2015 on Guidelines for Decision Making Procedures and

Mechanisms in Village Consultations

d. MoV Regulation No. 3/2015 on Village Mentoring

e. MoV Regulation 16/2018 on the Priority for the Utilization of Dana Desa 2019.

68. Amongst the above-listed guidelines, environmental and social sustainability aspects have

been explicitly stipulated in the Village Development Guidelines, notably in the preparation and

implementation of the Medium-term Village Development Plan (RPJMDes) and Village Annual

Work Plan (RKPDes). For RKPDes, Article 62, 67 and 68 stipulate that the Implementor of the

Activity (Tim Pelaksana Kegiatan = TPK) should prepare documentation for the land and assets

that need to be acquired for the sub-project or activity (voluntary land donation or direct purchase),

prepare a report on the assessment of potential environmental and social impacts, ensure that

documentation of land transfers are properly prepared; ensure that poor households are properly

compensated for their acquired land and assets by the APBDes. Furthermore, the Guidelines also

stipulate the mechanisms for inclusive public consultations (for RPJMDes, Article 25; for RKPDes,

Article 46, including women, poor community); complaint handling (Article 78), monitoring and

supervision of the village community during the planning and implementation of the village

development (Article 85). The Guidelines state that information disclosures of the RKPDes,

APBDes and Work Plan are carried out through public consultations at various levels in the village,

web-based village information system, information board, and other available venues.

69. The MoV Regulation 16/2018 on the Priority for the Utilization of Dana Desa (DD) 2019

stipulates that DD can be used for village development and community village empowerment.

Across these two development areas, it promotes sustainable village development, environmental

preservation, disaster management, also provide special attention for vulnerable groups including

women, the poor families, disabled and stunting. The regulation also requires public consultations

and development of information and communication management through various media. Further,

the regulation stipulates that priority of the utilization of the DD should be discussed in the

preparation of the preparation of the RKPDes through public consultations.

70. Based on the brief reviews of the above-said regulations, the Project is planning to

strengthen the environmental and social sustainability aspects, either in the new and/or each of the

above-listed regulation or by developing a Technical Guidelines for Environmental and Social

Sustainability for the implementation of the Village Law, to the extent relevant and applicable. The

strengthening action will follow the relevant Indonesian laws and regulations and the World Bank

safeguards policies applicable to this Project as explained in Section 3 above, i.e. the objectives,

key principles and requirements of OP 4.01 (Environmental Assessment), OP 4.04 (Natural

Habitat), OP 4.36 (Forest), OP 4.11 (Physical Cultural Resources), OP 4.10 (Indigenous Peoples)

and OP 4.12 (Involuntary Resettlement). Refer also to Section 6 on how the objectives, key

35

principles and requirements of the applicable OPs as well as the Bank’s Guidelines for

Environment, Health and Safety will inform the elements of mainstreaming in the Component 1, 2

and 4 of the Project. A negative list for this Project (see Section 7.1) will be taken into consideration

as element of mainstreaming.

71. Strengthening of the environmental and social sustainability aspect is particularly needed

during the preparation and implementation of RPJMDes and RKPDes; preparation and

implementation of APBDes and design of sub-projects (during the preparation of the Rencana

Kegiatan) to be financed by the APBDes, as well as the monitoring and supervision of the

implementation of these plans. Strengthening areas may include detail guidance of: (1) sub-projects

negative list; (2) identification of potential environmental and social impacts/issues; (3) preparation

of mitigation measures instruments; (4) documentation of the implemented instruments; (5)

meaningful consultation; (6) disclosures; (7) budgeting the preparation and implementation of the

instruments; and (8) monitoring and supervision of the implementation of the RPJMDes, RKPDes,

APBDes and Work/Activity Plan (Rencana Kegiatan).

72. In addition, social sustainability includes measures to enhance the inclusion of benefits to

IP and the delivery of culturally appropriate benefits through the strengthening of the existing

guidelines/manuals, training modules, and training delivery. The Project will include a more pro-

active approach to IPs inclusion and development benefits during the preparation and

implementation of RPJMDes, RKPDes, APBDes and design of sub-projects.

73. The Project is planning to use lessons learned and leverage the relevant materials that have

been developed in the PNPM-Rural Project’s environmental and social safeguards operational

technical guidelines.

Training Modules:

a. Pre-assignment training modules for village facilitator for infrastructure (PD-TI)

b. Pre-assignment training modules for village facilitator for empowerment (PD-P)

c. Pre-assignment training modules for local village facilitator (PLD)

d. Training modules for village apparatus in preparing the RPJMDes, RKPDes and APBDes

(not yet available).

74. Amongst the first three of the above-listed training modules, environmental and social

sustainability aspects is only covered in the pre-assignment training modules for village facilitator

for infrastructure (PD-TI). It covers brief principles on land acquisition, IPs, timber management,

and resettlement, screening criteria, outcome indicators for environmental and social safeguards

management, the roles of PLD and village cadres in ensuring the implementation of environmental

and social safeguards; evaluation and environmental management (physical and social), and

strategy for reducing and mitigating impacts due to disasters. The module also includes the format

for voluntary land donation, identification of potential environmental impacts, and a format on the

commitment for operation and maintenance of the infrastructure. Some of the ongoing capacity

building activities carried out by MoHA and MOV are presented in Annex 2 and Annex 3.

75. Capacity and current practices. Overall, awareness and capacity of the stakeholders

involved in implementing the village law on the environmental and social sustainability (ESS) are

36

limited, including at the central level (MoHA and MoV), provincial, district, sub-district and village

level. Some of the MoHA staff who were involved in the PNPM-Rural are aware of the

environmental and social sustainability. Further, village facilitators who had been involved in the

PNPM-Rural have some awareness and understanding on environmental and social sustainability

and used their knowledge during their facilitation to the village community. However, in general,

facilitators (Village Facilitator (PD: PD-P and PD-TI) and Local Village Facilitator (PLD)) have

a very limited awareness and capacity on environmental and social sustainability.

76. Awareness and capacity of the village apparatus in environmental and social sustainability

aspect for the physical investment financed by the APBDes is very limited. Environmental

mitigation measures were not planned during the sub-project design but implemented based on

needs identified during the construction. Consistent with the findings of the World Bank Study on

the Evaluation of Infrastructure Built with Village Funds (2018) mentioned above, field visit to

villages (such as Kabupaten Aceh Utara) revealed that voluntary land donation was rarely

documented, although the village apparatus agreed that it is important to avoid conflict in the future.

The PTPD (Pendamping Teknis Pemerintahan Desa) who oversees and advices the village in

preparing the RKPDes and APBDes have also limited awareness and knowledge in environmental

and social sustainability aspect, similarly with the PD and the PLD.

77. As explained in Section 3.2, to address the above situation, in addition to training provided

to the PTPD and PD as well as to the village apparatus with modules and training delivery that

have mainstreamed ESS’ objectives, principles and requirements, the Project intends to (1)

strengthen the monitoring and supervision activities by including monitoring indicators

representing the inclusion of ESS sustainability; (2) include the district environmental agency

(DEA) to provide awareness and capacity training to the district inspectorate, PTPD (at the sub-

district level) on the ESS; (3) provide guidance to the village government and community on the

ESS and the negative list for the performance grants during the preparation and implementation of

the village plans particularly for activities financed by the performance grants; (4) include the ESS

sustainability aspects in the monitoring and supervision activities to villages carried out by the

PTPD; and/or (5) include the ESS and negative list as part of the criteria for the performance grants.

6. FRAMEWORK FOR MAINSTREAMING ENVIRONMENTAL AND SOCIAL

SUSTAINABILITY ASPECTS IN THE CAPACITY BUILDING AND

INSTITUTIONAL STRENGTHENING OF THE IMPLEMENTATION OF THE

VILLAGE LAW

78. While the Project supports the implementation of the Village Law through the

establishment and use of digital information technology (internet and off-line), the assessment

presented in the Section 3 and Section 5 above suggest that strengthening areas for environmental

and social sustainability aspects is needed to ensure that ultimately the planning and

implementation process, the various plans and their implementation at the village level ensures

sustainable development that benefits all population segments. The system strengthening is

expected to promote a more effective and sustainable spending of the APBDes as avoidance and

impact mitigation measures will have been planned upstream at the RKPDes, APBDes and activity

design stage.

37

79. The strengthening will follow the relevant Indonesian laws and regulations and the World

Bank safeguards policies applicable to this Project as explained in Section 3.1 and Section 5 above,

i.e. the objectives, key principles and requirements of OP 4.01 (Environmental Assessment), OP

4.04 (Natural Habitat), OP 4.36 (Forest), OP 4.11 (Physical Cultural Resources), OP 4.10

(Indigenous Peoples) and OP 4.12 (Involuntary Resettlement).

80. In addition, the underpinning objectives, key principles and requirements of the ESS which

are governed under OP 4.01 that serve as an umbrella policy for other safeguards policies applicable

to this Project, i.e., OP 4.04, OP 4.36, OP 4.11, OP 4.10 and OP 4.12. will inform the mainstreaming

to the Component 1, 2, and 4. As relevant, this includes:

a. Avoidance, and if it is not possible, minimize environmental and social impacts of a

sub-project; to the extent feasible, preventive measures are preferable over mitigatory

or compensatory measures

b. Screen, identify and assess potential environmental and social impacts using screening

check list25, thresholds requirements, and potential associated risks, if any;

c. Determine tangible measures to prevent, minimize, mitigate or compensate for these

adverse impacts;

d. Mitigate environmental and social impacts through the adjustment of sub-project

design, planning, sites and/or through the preparation of appropriate instruments;

e. Implement the instruments prior to, during and after construction of a sub-projects as

applicable; the instrument includes a set of mitigation, monitoring and institutional

measures to be taken during the design, implementation and operations phases of a

sub-project;

f. Process of environmental and social assessment will involve consultations with the

project affected persons and the public (in this Project with the village community) as

applicable;

g. Disclosure of the environmental and social safeguards instruments to the public (in this

Project with the village community), particularly the project affected persons;

h. Monitor and evaluate the implementation of the instruments ensuring that the sub-

project is environmentally and socially sustainable.

81. Mainstreaming objectives, key principles and requirements of OP 4.04 in Component 1, 2

and 4 includes among others, screening to identify potential natural habitats presence such as

wetland, peatland, forest boundaries, protected forest, and developing a system in preventing

natural habitats from conversion and degradation. The negative list specifies the types and

characteristics of natural habitats which need to be avoided e.g. wetland, peatland, grass land and

outline specific prohibition measures to prevent indirect or induced adverse impacts, such as from

the small-scale access road development toward forest boundaries by allowing only small-scale

road rehabilitation/development in residential areas or surrounding public facilities.

25 Public Works Ministerial Regulation No. 10/PRT/M/2008 on Type of Public Works Activities that need a UKL-

UPL. Requirements for activities that need UKL-UPL are also specified in the Regulation of the Ministry of

Environment No. 5/2012 on the Type of Activities that Require an AMDAL. See also Regulation of the Ministry

of Environment and Forestry No. 26/MENLHK/SETJEN/KUM.1/7/2018 on the Guidelines for Defining

Activities that Require an UKL-UPL and a Statement Letter of Commitment to Manage and Monitor the

Environment (SPPL).

38

82. On OP 4.36, to the extent relevant to the Project, mainstreaming will include among others

the need to identify forest types and boundaries and its functions including services provided to the

villagers. Further, the screening of sub-project will exclude the villages which part of their areas

are forests and villages that are located in the surrounding forests area to prevent potential indirect

impacts from the forbidden of the small-scale road development leading to forest boundaries (road

rehab/development are only allowed for residential areas or public facilities for this village

category).

83. On OP 4.11, to the extent relevant, the mainstreaming will cover among others, screening

that identify potential physical cultural resources in the village during the preparation of a sub-

project, avoid the disturbance or impacts to the PCR through re-design or re-route or choose another

sub-project site. Any civil works contract or community civil works contract will include chance

finds clauses to avoid or manage impacts in the case that during construction the village community

happens to find PCR which were unknown prior to the sub-project design. Chance finds procedures

will be included in the manuals, guidance and/or training modules in the Project.

84. On OP 4.10, mainstreaming of the objective, key principles and requirements of this policy

to Component 1, 2 and 4 will include among others, screening and verification of IPs, provisions

of a free, prior, informed consultations that lead to broad supports of the IPs community to a

subproject, social assessment, preparation of an Indigenous Peoples Plan (IPP) in reference to the

IPPF in this ESMF.

85. Special attention for mainstreaming the objectives, key principles and requirements of OP

4.10 in Component 1, 2 and 4 will also include measures to enhance the inclusion of benefits to IP

and the delivery of culturally appropriate benefits through the strengthening of the existing systems

and tools (for instance, concerning training, capacity building, knowledge management, manual

and guideline, and M&E). The Project will consider include a more pro-active approach to IP

inclusion and development benefits through a more pro-active targeting of IP communities,

additional support (TA/PD) in areas with IPs, a broader menu of eligible investments for IPs,

monitoring and evaluation of IPs participation and benefits during project implementation. Results

of Project monitoring and evaluation will be used to improve the capacity building delivery (such

as for the PDs and village apparatus) and/or manuals tailored to the needs to increase IPs

participation and benefits.

86. To the extent possible, the mainstreaming of the objectives, key principles and

requirements of OP 4.12 into Component 1, 2 and 4 includes among others, (a) avoidance of

involuntary resettlement where feasible either through alternative sub-project designs, change the

sub-project site or re-route; (b) address impacts due to resettlement if avoidance is not possible,

prepare a resettlement action plan through meaningful consultations with the affected persons; (c)

assist the affected persons to improve their livelihoods and standards of living or at least restore

them; (d) disclose the resettlement action plan, etc. Refer to Section 3.1.

87. A negative list for this Project (see Section 7.1) will be taken into consideration as element

in the mainstreaming and the Project will also apply the Bank’s Guidelines for Environmental,

Health and Safety.

39

88. The Project manuals, guidelines, training modules and TORs for facilitators etc. will

include the elements explained above paragraphs as part of the mainstreaming. In addition, other

indicative key strengthening areas on ESS sustainability aspects as presented in Table 3 below

include:

a. aspects of climate-resilience village, disaster management, labor and gender-based

violence management;

b. provisions for managing potential environmental and social impacts, and improvement of

stakeholder engagements, inclusion of vulnerable groups, Indigenous Peoples community,

and gender as well as complaint handling system; in the new and existing manuals,

guidelines, training modules, awareness training, integrated data-base management, and

training delivery system, terms of references for TA, consultants and/or facilitators and

monitoring and supervisory team/unit.

89. The key strengthening areas as summarized in Table 3 will be elaborated and confirmed in

the first year of Project implementation as mainstreaming environmental and social sustainability

aspects in the capacity building and institutional strengthening system will be developed based on

needs.

Table 3: Indicative Key Strengthening Areas26

Manuals/Guidelines/ Training Modules Element of strengthening areas27

- Village Development Guidelines Improvement of the existing environmental and

social sustainability aspects, e.g. screening and

impact identification; disaster management and

climate change; potential natural habitats

presence; forest types and boundaries and its

functions including services provided to the

villagers; potential physical cultural resources;

labor and gender-based violence management; Indigenous Peoples; safeguards instruments;

information disclosures; budgeting, monitoring

and supervision for safeguards instruments.

- Village Financial Management Add environmental and social sustainability

aspects, e.g. screening and impact identification;

disaster management and climate change;

safeguards instruments; information disclosures;

budgeting, monitoring and supervision for

safeguards instruments.

- Guidelines for Decision Making Procedures

and Mechanisms in Village Consultations

Add environmental and social sustainability

aspects, e.g. information disclosures; meaningful

consultation, grievance redress mechanism.

➢ Village Mentoring Add environmental and social sustainability

tasks, particularly the PLD, e.g. provisions for

managing potential environmental and social

impacts, stakeholder engagements, inclusion

of vulnerable groups, Indigenous Peoples

community, and gender as well as complaint

26 Element of strengthening areas will be elaborated and confirmed during the first year of Project implementation. 27 Improvement or additional of the elements of the environmental and social sustainability aspects vary among

these guidelines/training modules depending on the users/target groups.

40

Manuals/Guidelines/ Training Modules Element of strengthening areas27

handling system

➢ Priority for the Utilization of Dana Desa

2019

Add environmental and social sustainability

aspects, e.g. screening and impact identification;

disaster management and climate change;

potential natural habitats presence; forest types

and boundaries and its functions including

services provided to the villagers; potential

physical cultural resources; labor and gender-

based violence management; Indigenous

Peoples; safeguards instruments; information

disclosures; budgeting, monitoring and

supervision for safeguards instruments.

➢ Or, develop new Technical Guidelines on

Environmental and Social Sustainability for the

Implementation of Village Law

As relevant, leverage lessons learned and the

PNPM-Rural Technical Operational Guidelines

Training Modules

Through Akademi Desa 4.0

➢ Pre-assignment training modules for

village facilitator for infrastructure (PD-TI)

Improvement or add of the existing

environmental and social sustainability aspects,

e.g. screening and impact identification; disaster

management and climate change; potential

natural habitats presence; forest types and

boundaries and its functions including services

provided to the villagers; potential physical

cultural resources; labor and gender-based

violence management; Indigenous Peoples;

safeguards instruments; information disclosures;

budgeting, monitoring and supervision for

safeguards instruments.

➢ Pre-assignment training modules for

village facilitator for empowerment (PD-P)

➢ Pre-assignment training modules for

local village facilitator (PLD)

➢ Training modules for village apparatus

and village community group (LKM, KPMD,

etc.) in preparing the RPJMDes, RKPDes and

APBDes

Add environmental and social sustainability

aspects, e.g. screening and impact identification;

disaster management and climate change;

potential natural habitats presence; forest types

and boundaries and its functions including

services provided to the villagers; potential

physical cultural resources; labor and gender-

based violence management; Indigenous

Peoples; safeguards instruments; information

disclosures; budgeting, monitoring and

supervision for safeguards instruments..

Awareness Training

- Awareness training modules for the preparation

and implementation of RPJMDes, RKPDes for the

TAPMD (esp. TA-ID), PTPD, officials of DPMD,

and District Inspectorate (new), provincial satker.

Develop new modules - substance of

environmental and social sustainability are

mainstreamed

Integrated Data-based Management/ InfoDesa Develop attributes related to information on the

environmental and social sustainability aspects,

e.g. information on natural habitats; forest types

and its boundaries; Indigenous Peoples, disaster

management and climate change, physical

cultural resources.

41

Manuals/Guidelines/ Training Modules Element of strengthening areas27

Terms of References – Through Market Place

1. TAPMD (esp. TA-ID)

2. PD-TI

3. PD-P

4. PLD

Add tasks for providing oversight and/or

mentoring in ensuring environmental and social

sustainability aspects are considered in the

RPJMDes, RKPDes, APBDes, Activity Design,

e.g. provisions for managing potential

environmental and social impacts, stakeholder

engagements, inclusion of vulnerable groups,

Indigenous Peoples community, and gender as

well as complaint handling system

Performance Criteria Include ESS aspect as relevant

Socialization of the Performance Criteria to the

villages, sub-districts, and districts

Socialization and training for the BPKP

on the performance criteria

Integrated data-based management Include attributes related to ESS aspects, such as

information on natural resource development,

good practices on environmental and social

sustainability, etc.

7. ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK FOR

COMPONENT 3 AND E-WASTE

90. This section is specifically prepared for ensuring that environmental and social

sustainability aspects are implemented for the Project Component-3 (strengthening village

government performance) on which will pilot test a performance incentive grant to village

governments demonstrating improvements in pre-determined result criteria, as well as

strengthening systems of verification and outcome monitoring. As explained earlier, the

performance grants will be recorded in the APBDes and will be used for activities that are solely

financed by the grants. The grants will not co-finance any other activities.

91. Type of small scale activities at village level which is eligible to be financed under the

incentive mechanism will be an open menu against the negative list, among others: innovative

activity to strengthen local economic development, women empowerment of productivity, small

scale physical infrastructure (with negative list), small-scale innovative technology of water supply

facilities, disability inclusive facilities for school and early childhood center, and so on. As

suggested by the Viper Study and PNPM-Rural, the typical small-scale physical investments would

be improvement and rehabilitation of existing community roads and bridges, water supply,

sanitation, drainage, as well as health and education facilities. Mostly will be community self-built

or utilizing small local contractors hired by the village (Tim Pelaksana Kegiatan). The list of

proposed activities must be included in the RKPDes and in the APBDes, be consulted with

communities and local institutions and approved by the BPD as well.

92. While under project component 1, 2 and 4, the likely impacts have already been identified

in terms of potential electronic waste as consequences of the introduction of a digitalized, IT-based

tools, development of e-platform and e-services for learning, capacity building, knowledge

management, harmonization of regulations, oversight and monitoring, and integrated information

42

and data management. Component 1, 2 and 4 will not involve any physical or preparation of any

plans that would led to the implementation of physical investment or activities involving

downstream environmental and social impacts and risks. The measures for preventing the

environmental impacts of the e-waste to the environment and human health seems quite straight

forward and will follow a procedures or protocol for e-waste disposal which developed by the

Government. However, awareness program and capacity building will need to be arranged, to

educate people and whole community on issue of e-waste, its potential impact and how to manage

the risks. The procedure is described below under section 7.2.

93. The ESMF for Component 3 and e-waste disposal is an instrument that examines the issues

and impacts associated when a project consists of a program and /or series of sub-projects, and the

impacts cannot be determined until the program or subproject activities details have been identified.

The ESMF set out the principles, rules, guidelines, instruments and procedures to assess the

environment and social impacts. It contains measures and plans to reduce, mitigate and/or offset

adverse impacts and enhance positive impacts. Costs for preparing and implementing the

safeguards instruments for component 3 will be covered by the village budget (APBDes) and for

the e-waste disposal management by the PIUs of MoHA and MOV (also refer to Section 14).

94. Overall responsibility for implementing the ESMF under this section 7 belongs to the PIUs

of the MoHA and MoV. The village government or Tim Pelaksana Kegiatan (TPK) will be

responsible to screen the proposed sub-project using screening check list, negative list and identify

potential environment impact as well as prepare mitigation measures. The proposed activities to be

financed by the performance grants will be reviewed by the district PIU with the assistance of the

PTPD of the sub-district. Provincial PIU will review the consolidated proposed activities from all

districts in a particular province and submit the results of the review to the PIUs in MoHA. MoHA

will then submit the approved proposed activities to be financed by the grants to the MoF. With

assistance of NMC, the PIUs in coordination with the provincial and district PIU will monitor the

overall compliance of the activities financed by the performance grants with the ESMF under

section 7.

95. The PIU of MoHA and MoV, with the assistance of the consultants will provide training to

the village governments, PTPD in the sub-district, and facilitators on the screening (including

negative list), identification and assessment of potential impacts, preparation of appropriate

instruments, consultations with the villagers and affected persons, etc. The Project plans to provide

such training in the year 1 of Project implementation. The training will be part of the overall training

modules as specified in Section 12.

7.1 Principles, Screening and Safeguards Instruments

96. Principles

a. Subprojects should avoid, and if unavoidable, should minimize negative environmental and

social impacts, including land acquisition and IPs affected, and the village government

should have explored viable alternative location and/or designs to minimize any such

negative environmental and social impacts;

43

b. Sub-project should not make affected persons worse off in terms of environmental

conditions, income, livelihoods as well as other social and cultural aspects. The sub-

projects are expected to generate positive impacts for affected persons.

c. Should such negative impacts be unavoidable, it is necessary to ensure that mitigation

measures are developed to minimize such negative impacts and/or restore to original

conditions, either during the planning, preparation or implementation stage. Any subproject

entailing a negative environmental and social impact should be accompanied by a plan to

mitigate and address such impacts;

d. Environmental management, land acquisition and the management of IPs should be carried

out based on the principles of transparency, public participation and consultation with the

affected persons using adequate information which is to be provided as early as possible,

and involve relevant stakeholders, not limited to Local Government, but also from local

NGOs, academic institutions, and the public.

e. Aspirations and recommendations identified as a result of the public consultation with

affected persons which minimize the negative impact of the sub-project or may maximize

its positive impact must be considered in the design, implementation, operation and

maintenance of the said sub-project.

f. The process of public consultation, results of the agreement and revised plan on the

environmental management, land acquisition the IPs Plan should be publicly disclosed to

the public through available local media and in public facilities accessible to all community

members.

g. The consultation process, agreements, plans and implementation of environmental

management plans, land acquisition as well IPs Plans must be properly documented and

integrated into the proposed sub-projects and in the village report of APBDes

implementation.

h. Subprojects should be in specified in the approved RKPDes and APBDes and avoid

protected areas designated by the Ministry of Environment and Forestry;

i. The subprojects will not trigger World Bank OP 4.04 Natural Habitat, OP 4.36 Forest and

OP 4.11 Physical Cultural Resources. It has been defined in the negative list of

infrastructure/physical investment in Component 3 that the project will not finance sub-

projects to be undertaken in prohibited, critical natural habitats (including critical forest,

coastal and marine habitats), nor will it result in the significant conversion of natural

habitats. The activities will not affect the health/quality of forest or involve any forest

management. The activities will not adversely affect any sites with archaeological,

paleontological, historical, religious or of unique natural value as defined under the policy.

97. Screening

a. The village government or the Tim Pelaksana Kegiatan (TPK) in particular will screen the

proposed sub-projects using screening checklist (see Annex 5 Report on Environment

Screening and Annex 6 on Screening Format for Generic Sub-project)28 and identify

potential environmental impacts, the land need (refer to the negative list), and check

whether IPs or Masyarakat Adat (MA) community are presence in the sub-project area. If

28 Annex 5 and 6 will be expanded during the preparation of the Program Implementation Guidelines in year 1 of Project

implementation.

44

MA presence, identify whether they are part or the sole beneficiaries of the sub-projects or

they will be potentially affected (positively or negatively).

b. Identify the type and intensity of potential environmental impacts; location, amount and

number of land plots, number of land owners, number of occupants/users of land that will

be needed by the sub-project. Verify the IPs presence, benefitted and/or impacted through

meaningful consultations, involving MA leaders, village leaders;

c. Identify linkage and/or potential impacts of the sub-project and inform the person who is

in charge of preparing the sub-project design.

98. Negative list

a. Sub-projects eligible for financing should not include activities with significant, sensitive,

complex, irreversible and unprecedented potential adverse environmental and social

impacts requiring a full environmental assessment to manage and mitigate such impacts in

accordance with Ministry of Environment Regulation No. 5, 2012, Ministry of Public

Works and Housing Regulation No. 10, 2008. Should there be a subproject identified

otherwise, the project will not finance it.

b. Sub-projects involving the following are ineligible for financing under the village

performance grants:

(1) Using material which depletes ozone layer in the atmosphere, tobacco or any products

containing tobacco, and pesticide.

(2) Using asbestos as construction material.

(3) Using raw material and hazardous & toxic waste (B3). The project cannot finance any

project activity which uses, produces, stores or transports raw material and hazardous

& toxic waste such as toxic substance, material which may cause rush or explosion

and any other materials categorized as B3 under Indonesian law.

(4) Carry out sub-project or activity within, traversing or adjacent to forests. The Project

cannot finance any sub-project or activity that is located within, traversing or adjacent to

forests, including conservation forests (natural parks, natural reservation forest,

conservation forest, and hunting parks)29, production forests and protection forests. Some

village infrastructure that are located near forests is allowed if they only involve quality

improvement of existing infrastructure and is necessary for the benefit of IPs, however,

the other ineligibility criteria specified in this negative list shall apply.

(5) Protected and sensitive areas, natural habitat and critical natural habitat. The Project

cannot finance any sub-project of activity that is located within, adjacent to or

traversing protected areas and sensitive areas such as natural conservation areas etc.

or any sub-project or activity which may alter the function or effectiveness of

protected and sensitive areas. Additionally, the Project cannot finance any sub-project

or activity which causes significant conversion and/ or degradation of the natural

habitat or any critical natural habitat environment including those of terrestrial, coastal

and marine ecosystems.

(6) Destroys cultural conservation area. The Project must not finance any project which

degrades or destroys cultural value of a cultural conservation area, not only limited to

29 Based on Government Regulation no. 22 of 2001 on Forest Management and Forest Management Planning, Forest

Utilization and Forest Area.

45

artefact and cultural structure, but also locations considered sacred or having high

spiritual value for local people. In the contract agreement with the contractor, there

must be provisions and guideline concerning what measures must be taken if these

artefacts and structures are found within the project site. Measures should follow the

Chance Finds Procedure as presented in Annex 19.

(7) Those need land or need to acquire assets attached to land

(8) Using timber from illegal logging. The Project must not finance infrastructure related

to or support illegal logging.

(9) The Project must not finance new or rehabilitation irrigation construction in wetland

areas.

99. The PIU of MoHA will have to ensure that one of the eligibility criteria of the performance

grants is the negative list. The district PIU will make the first review of the proposals of the winning

villages to be financed by the grants, which will be then reviewed by the PIU of MoHA. PIU of

MoHA and District PIU will monitor the implementation of the negative list in the activities

financed by the performance grants. The list of proposed activities to be financed by the

performance grants must be included in the annual work plan and annual budget plan of a village

(or Rencana Kerja Pemerintah Desa and APBDes, respectively). Local community who are

consulted during the preparation of any village plans (such as RPJMDes, RKPDes and APBDes)

should be aware of the needs to consider the negative list for the performance grants (which is part

of the Guidance for the Performance grants). The BPD who reviews and approves these plans

should include the negative list for the performance grants as parts of its considerations. District

Environmental Agency (DEA) will have to provide guidance to the village government and

community on the negative list for the performance grants during the preparation and

implementation of the village plans particularly for activities financed by the performance grants.

The DEA should provide awareness and capacity training to the PTPD (at the sub-district level)

who guides the village governments in preparing and implementing the village plans.

100. Environmental and social safeguards instruments

a. Once the sites, delineation of impacts areas, type of impacts and intensity of impacts are

identified, the TPK will select the appropriate instruments. Formats for UKL-UPL (Annex

7 and 8), SPPL (Annex 10) and SOP for environmental management (Annex 9); Typical of

sub-project impacts and mitigation measures is provided in Annex 11. Annex 12 and 13

describes generic format for Environmental Codes of Practices (ECOPs) that are based on

good environmental management practices. More explicit requirements on construction

practices in rural areas based on the main typologies of community investments that can be

adopted during sub-project preparation and implementation under Component 3 is Manual

of “The DOs and DON’Ts: Environmental Management: General Considerations-Site

Screening-Construction Site Management, Roads, Water Supply, Sanitation, Solid Waste

Management, Markets, Rivers” prepared by the PNPM-Rural Project30. The Institutional

30 This Guidance Book, English version can be accessed through

http://documents.worldbank.org/curated/en/925701495170561883/The-dos-and-the-donts-environmental-management-

general-considerations-site-screening-construction-site-management-roads-water-supply-sanitation-solid-waste-

46

Strengthening for Improved Village Service Delivery Project civil work activities should

use these practices to minimize the negative environmental impacts. These good practices

are provided as examples, but measures are not limited to the ones described here, some

measures will be locally specific and can be adapted using the best locally available

technology.

b. The TPK will prepare the appropriate safeguards instruments in consultations with the

affected persons. Consultations, agreements and disagreements should be documented. If

agreement was not reached, the design or location of sub-project has to be changed.

c. The safeguards instruments should be verified by the PLD and PD-TI and approved by the

PTPD. The instruments have to be disclosed by the TPK in the venue and in a way that

villagers can easily access the information.

d. The approved safeguards instruments should be part of the sub-project proposal or plan.

Details on the institutional arrangements at the village level for preparation, review and approval

of the screening process and environmental and social safeguards instruments are provided in

Section 11.

7.2 Protocol for E-Waste Disposal

101. The proposed project activities will not involve any physical investment or preparation of

any plans that would lead to the implementation of physical investment or activities involving

downstream environmental and social impacts and risks. However, likely activities relevant to

establishment or development of e-platform for facilitation services and e-learning platform as well

as strengthening data base system might involve investment in digital/electronic equipment or

hardware, e.g., computers and other electronic equipment. Subsequently, the World Bank’s

Safeguards Policies OP 4.01 on environment assessment will be triggered due to its potential of

electronic waste (e-waste). E-waste is any electronic items or equipment which no longer needed

(whether still functioning or broken) and which intended to be discarded. This type of waste is

categorized as hazardous waste due to its contains of various hazardous and toxic materials such

as lead, mercury, arsenic, cadmium, selenium and chrome. Hazardous waste included e-waste is a

specific waste which need special treatment. Without a proper disposal management, this e-waste

can cause negative impact to the human health and environment. Detail of e-waste management is

presented in Annex 4.

102. The following are a list of some electrical and electronic equipment relevant to Information

Technology (IT) and Telecommunications equipment which subject to e-waste disposal

management:

• Centralized data processing systems: mainframes, mini computer

• Personal computing:

o Personal computer (Central Processing Unit with input and output devices)

o Laptop (Central Processing Unit with input and output devices)

o Notebook computers

management-markets-and-rivers. This Guidance Book, Bahasa Indonesia version can be accessed through

http://documents.worldbank.org/curated/en/188631468042887318/Baik-and-buruk-pengelolaan-lingkungan.

47

o Notepad computers

• Printer including cartridge

• Copying equipment

• Electrical and electronic typewriter

• User terminal and systems

• Facsimile

• Telephones

103. The government is responsible for hazardous waste management. The Law no 32/2009 on

Protection and Management of the Environment and the Law no 18/2008 on Solid Waste

Management cover in general the need to manage hazardous waste from all sources. Government

Regulation No 101 Year 2014 on management of hazardous waste, specifically regulate how to

determine, reduce, storage, collection up to dumping and transboundary movement of hazardous

waste as well as emergency response. The government need to ensure that the e-waste is handled

properly while community/individual must participate in reducing, separating and bringing this

waste to the dropping point or Temporary Collection Facility for further collection by certified

waste collector company.

104. Procedures for e-waste disposal activities from the source of household, commercial, and

government office:

• Separate the e-waste from other waste.

• Place the e-waste in “Dropbox” or other proper container

• Transport e-waste to the E-Waste Shelter: Dropping Point/Temporary Collection Facility31

Other options for removing e-waste:

• “Trade in”. Prior arrangement need to be made during procurement of the electronic

equipment;

• Collection by third party/ certified waste collector company

Diagram 2 below shows the procedures of the e-waste management.

Figure 5: E-Waste Management

31 The disposal of the used IT and other electronic equipment/e-wastes (which part of state assets) should follow removal

procedure of assets/goods belong to the state (Min of Finance Regulation no 96/PMK 06/2007) before transport to E-Waste

Shelter or Temporary Collection Facility or other eligible options for removing the e-wastes.

48

8. INDIGENOUS PEOPLES PLANNING FRAMEWORK (IPPF)

8.1 Objective

105. The main objective of this IPPF is to help ensure that any sub-project activity (including

physical investment) financed by the village performance grants is designed and implemented in a

way that fosters full respect for Indigenous Peoples (IPs)’ identity, dignity, human rights, livelihood

systems, and cultural uniqueness as defined by the IPs themselves to enable them (i) to receive

culturally appropriate social and economic benefits; (ii) not to suffer adverse impacts as a result of

the sub-project activity; and (iii) can participate actively in the activity. This IPPF safeguards the

rights of IPs to participate and equitably receive culturally appropriate benefits from the activities

financed by village performance grants.

8.2 Specific Objectives of this Framework

106. The specific objectives of this framework are to:

a. Ensure that IPs participate in and benefit from any activities in the Project;

b. Avoid or minimize potentially adverse effects on IPs, and if it is unavoidable, develop

and implement mitigation measures based on Free, Prior, and Informed Consultation

(FPIC – see Annex 17) resulting in broad supports from the impacted IPs communities;

c. Maximize the potential positive effects of the project on the IPs, based on FPIC with the

IPs ensuring that the design and implementation of the any activity incorporate

aspirations and needs of the IPs.

8.3 National Regulations and Institutional Arrangements Pertaining to IPs

49

107. The Government acknowledges the presence of Masyarakat Hukum Adat and their rights,

provided that these groups meet eligibility requirements and have obtained legal recognition from

their provincial or district governments (further elaborated in the Minister of Home Affairs’

Regulation No. 52/2014). Such legal recognition serves as a precondition for further recognition of

land rights and natural resources within customary territories. In May 2013 the Constitutional

Court ruled that Hutan Adat are not part of the State forest (hutan negara). This Court decision

modified Hutan Adat from falling under the category of state forest (hutan negara), to the category

of private forest (hutan hak) This decision further implied that Adat forests, wherever legally

recognized, would be assumed to be the collectively owned forests of Indigenous Peoples.

108. The Indonesian legal framework generally refers to Indigenous Peoples as Masyarakat

Hukum Adat (customary law communities).32 Identification criteria of such communities and

protection of their rights to land and natural resources can be found in various legislations. The

following Indonesia laws and regulations recognize the specific rights of IPs:

▪ Indonesian’s Constitution Article 18(B) recognizes the rights of Masyarakat Hukum

Adat;

▪ Basic Agrarian Law No. 5/1960: Apart from defining types of land rights of private

individuals and other entities, the law recognises land rights over customary territories (hak

ulayat) and customary law (adat law) as long as it is not in conflict with the national

interest;

▪ Law No. 39/1999 on Human Rights: Article 6 of the law states that the needs of

Masyarakat Hukum Adat need to be recognised and protected by the law, society, and the

government;

▪ Law No. 6/2014 on Villages: The law acknowledges the existence and rights of

Masyarakat Hukum Adat. The communities can establish adat villages with their own

institutional structures and authority although this law suffers from the lack of guiding

regulations and institutional mandates to make such provisions operational. The Law grants

a desa adat (customary village) the authority to conduct adat-based public administration.

Once recognized, Adat villages are legal entities entitled to village funds (dana desa) and

guaranteed unprecedented levels of autonomy to set up governance structures and manage

the commons. Law 6/2014 has reinforced the rights of IP and adat communities and an

additional route for claiming their rights.

▪ Law No. 23/2014 on Local Government: This Law recognizes the existence of adat

institutions (lembaga adat) by giving them rights to “empowerment”. Second, the Law

32 Relevant regulatory frameworks include Law No. 32/2009 on Environmental Protection and Management, Law

No.41/ 1999 (further revised to Law No 19/2004) on Forestry, Law no 18/2013 on Prevention and Abolition of

Forests Destructions, Presidential Instruction No 88/2017 on Land Tenure Settlements in Forest Areas, and

Ministerial Regulation of the Ministry of Home Affairs No 52/2014 on the Guidelines for the Recognition and

Protection of Adat Community and most recently the Presidential Regulation No 88/2017 on Land Tenure

Settlements in Forest Areas.

50

determines that adat law is an additional rule for purposes such as village elections. Third,

the Law makes adat or adat law the basis upon which to conduct local development, or as

a parameter to measure social cohesiveness;

▪ Law No. 11/2010 on Cultural Heritage: This law recognises Masyarakat Adat as owners

of their cultural heritage and grants them authority to manage it. The law requires

observation and data collection on cultural heritage sites that may be affected by project

activities; and

▪ Forestry Law No. 41/1999: Primarily, the law divides forests into different legal categories

and provides criteria for the recognition of Hutan Adat rights. The law has been amended

by Constitutional Court Decision No. 35/2012 which established that adat forests are not

state forest area but collectively owned private land. The clarification of Article 67 (2) of

Law 41/1999 lists five conditions, based on which the government will recognize a

customary community as Masyarakat Hukum Adat:

o In the people’s daily life, it still is a communal society (paguyuban);

o The community has adat institutions and adat leaders;

o The community has clear boundaries;

o The community has well–functioning customary law institutions, particularly

an adat judicial system; and

o The community still collects forest products for its subsistence.

109. Below the level of national laws, a number of ministerial regulations further define

Masyarakat Hukum Adat and point out the legal procedures for the legal recognition of Masyarakat

Hukum Adat and the recognition of Hutan Adat or other customary land rights. Communal land

rights in the non-forest estates is regulated under Ministerial Regulation of ATR/BPN.

110. Ministry of Home Affairs regulation (Permendagri) No. 52/2014 define Masyarakat Adat

as follows:

a. Customary law communities (Masyarakat Hukum Adat) are groups of Indonesian citizens

who have distinctive characteristics, live in groups harmoniously according to their

customary law, have ties to ancestral origins and or similarities in living, have strong

relationships with land and the environment, and dispose of a distinct value system and

economic, political, social, cultural, legal institutions33;

b. Customary Territory (Wilayah Adat) is customary land in the form of land, water, and / or

waters along with natural resources on top of it with certain boundaries, owned, and

preserved for presence and future generations and utilized in a sustainable manner in order

to meet the needs of the community as inheritance from their ancestors or ownership claims

in the form of ulayat land or customary forests; and

33 Alternatively, The Minister of Agrarian Affairs/National Land Agency (Ministerial Regulation No. 10/2016) defines these

communities as “groups of people bound by their customary law arrangements as members of a group allied by their place of

residence or hereditary base.”

51

c. Customary Law is a set of norms or rules, both written and unwritten, that live and apply

to regulate human behavior that are based on Indonesian cultural values, inherited from

generation to generation, which are always adhered to and respected for justice and public

order and has legal consequences or sanctions.

111. Following Constitutional Court Decision No. 35/2012, several ministerial regulations were

passed that provide further details on how the government can recognize Masyarakat Hukum Adat

and their land rights. The central government (MoEF or MoATR/BPN) can only adat land rights if

there already is a regional form of government recognition. There are two options for the

recognition of Hutan Adat:

a. A regional regulation (Peraturan Daerah or Perda) as stipulated in Article 67 (2) of

Forestry Law 41/1999; and

b. A district head/governor decree (Keputusan Kepala Daerah). Ministerial Regulation of the

Minister of Home Affairs No. 52/2014 concerning Guidelines on the Recognition and

Protection of Masyarakat Hukum Adat, grants district heads/mayors the authority to issue

a decree on recognition based on recommendations from special committees (Panitia

Masyarakat Hukum Adat kabupaten/kota) (Article 6 (2)). These are appointed by the

district head/mayor (Article 3 (1)). They consist of: the regional secretary, the regional

working unit head, the district head of legal affairs and the sub-district head. Article 4

stipulates that the committee has the task to verify the identification (identifikasi),

validation (validasi) and determination (determinasi) of the adat law community involved.

112. After regional recognition has been realized, the following step for Indigenous Peoples to

secure their Hutan Adat rights is recognition by the MoEF. The MoEF has issued a ministerial

regulation on this procedure with regard to the recognition of Hutan Adat rights. This procedure

only appertains to the Forest Estate and not to state land under the jurisdiction of the MoATR/BPN.

Ministerial Regulation 32/2015 concerning Private Forest Rights (hutan hak) regulates the

procedural steps to be taken. A ministerial decree (keputusan menteri) can designate Hutan Adat

and hence, change its from state forest into private forest.

113. Article 6 of the Ministerial Regulation provides the following conditions for the Minister

to recognize adat forests by ministerial decree:

a. An Adat law community or right to avail (hak ulayat) has been recognized by a regional

government through a regional legal decision (produk hukum daerah);

b. There is an Adat territory that is partly or wholly located inside a forest; and

c. There is a formal request from an Adat law community to designate the Adat forest

114. Besides Hutan Adat rights and the other Social Forestry schemes, there are two other legal

options available for communities to secure land rights in the Forest Estate:

a. Hak Komunal (communal rights). This right pertains both to Forest Estate areas and state

land (tanah negara) and was established in Ministerial Regulation No. 10/2016 concerning

Procedures to Determine Communal Rights of Masyarakat Hukum Adat and Communities

in a Specific Zone, by the Minister of ATR/BPN. The Ministerial Regulation provides the

possibility for both Masyarakat Hukum Adat and other communities to obtain communal

52

ownership rights in the Forest Estate or state land. It refers to these communities as

‘communities in a Specific Zone’ (masyarakat dalam Kawasan Tertentu). Special Zone

refers to a Forest Area or to a plantation concession. For communities to obtain hak

komunal, a request has to be filed with their district heads. These shall then form an

inventory team called Tim IP4T.34 After the Tim IP4T verifies the communal land right, the

land in question shall be released either from the state forest or from the plantation

concession. If the land is located inside a Forest Area, the Tim IP4T will hand over its

results to the MoEF, which should then release the land from the Forest Area (Article 11).

If the land is located inside a plantation concession, the holder of the concession rights shall

be requested to exclude the plot of land from its concession (Article 13 (1) b). After the

Tim IP4T has given its approval to the particular district head/governor, a district head

decree or governor decree shall be issued, which shall then be sent to either the Ministry of

ATR/BPN or MoEF (Article 18 (2)) who will be asked to exclude it from their jurisdiction.

b. Land ownership certificate (sertipikat atas tanah). Presidential Regulation No. 88/2017 on

Settling Land Tenure within Forest Estate Areas (PPTKH) put in place procedures to

address issues related to land status and resource conflict within the Forest Estate (kawasan

hutan). According to this regulation, individuals or communities can obtain land ownership

certificates if they have cultivated a parcel of land located in the Forest Estate for more than

20 years (article 20 e). After inspection and verification, this land parcel shall then be

released from the Forest Estate.

8.4 Objectives and Requirements of OP 4.1035

115. OP 4.10 contributes to the Bank’s mission of poverty reduction and sustainable

development by ensuring that the development process fully respects the dignity, human rights,

economies and cultures of Indigenous Peoples. For all projects that are proposed for Bank financing

and affect Indigenous Peoples, the Bank requires the borrower36 to engage in a process of free,

prior, and informed consultation (FPIC). The Bank provides project financing only where free,

prior, and informed consultation (FPIC) results in broad community support to the project by the

affected Indigenous Peoples. Such Bank-financed projects include measures to (a) avoid potentially

adverse effects on the Indigenous Peoples’ communities; or (b) when avoidance is not feasible,

minimize, mitigate, or compensate for such effects. Bank-financed projects are also designed to

ensure that the Indigenous Peoples receive social and economic benefits that are culturally

appropriate and gender and intergenerationally inclusive.

8.5 Application of OP 4.10 in Project Component 1, 2, and Component 4

116. The Project will follow the principles and requirements of the Indonesian laws and

34 IP4T stands for Inventarisasi Penguasaan, Pemilikan, Penggunaan dan Pemanfaatan Tanah (Inventory of control,

ownership, use and benefit of land). 35 Taken from the World Bank OP 4.10 on Indigenous Peoples. 36 In this Project, the MoHA (as Executing Agency and CPIU) and the MOV (as CPIU) will be responsible to ensure that

principles and provisions for Indigenous Peoples are mainstreamed in the Component 1, 2, 4 and IPPF is consistently followed

for Component 3.

53

regulations and OP 4.10 on Indigenous Peoples to ensure that IPs community will have the

opportunity to participate in the planning and implementation process and have culturally

appropriate benefit from the Project with principles that fully respects their dignity, human rights,

economies and cultures. As already specified in the Section 5 on the indicative key strengthening

areas, provisions to enhance the inclusion of benefits to IP and the delivery of culturally appropriate

benefits will be included in the in the new and existing manuals, guidelines, training modules,

awareness training, integrated data-base management, and training delivery system, terms of

references for TA, consultants and/or facilitators and monitoring and supervisory team/unit.

117. In addition, the Project intends to:

a. engage in a more pro-active approach to IP inclusion and development benefits, such as

pro-active targeting of IP communities during the preparation of the RPJMDes, RKPDes,

APBDes and Work Plan/Activity Plan as well as sub-project design;

b. as needed provide additional support (TA/facilitators/consultants) in areas with IPs;

c. as much as possible provide a broader menu of eligible investments for IPs tailored to their

needs; and/or

d. include key provisions of IPs as part of the Project monitoring indicators and evaluation,

perhaps also include IPs to actively monitor the implementation of sub-projects.

8.6 Criteria of Indigenous Peoples

118. There is no universally accepted definition of IPs. In different countries IPs may refer to

by such terms as “indigenous ethnic minorities,” “aboriginals,” “hill tribes,” “minority

nationalities,” “scheduled tribes,” or “tribal groups.” In this IPPF, the term “Indigenous Peoples”

is used in a generic sense to refer to a distinct social and cultural group possessing the following

characteristics in varying degrees:

a. Self-identification as members of a distinct indigenous cultural group and recognition of

this identity by others;

b. Collective attachment to geographically distinct habitats or ancestral territories in the

physical investment area and to the natural resources in these habitats and territories;

c. Customary cultural, economic, social, or political institutions that are separate from those

of the dominant society and culture;

d. An indigenous language, often different from the official language of the country or region.

119. The term “Indigenous Peoples” is often associated with “Masyarakat Hukum Adat” (or

MHA—Customary Law Communities), or “Masyarakat Adat” (or Customary Communities), or

“Masyarakat Tradisional” (or Traditional Communities) which is common terminology used in

Indonesian laws and regulations to describe groups of people with similar characteristics as those

IPs specified above. Ascertaining whether a particular group is considered as Indigenous Peoples,

one should use the above criteria, and for the purpose of this IPPF, may require professional

judgement. This document will use the term “Masyarakat Adat” for IPs with the above 4 (four)

criteria.

8.7 Screening of IPs

54

120. As the Project will ultimately cover all villages in the country, IPs presence in some of the

villages is anticipated. The Project expects that IPs would be part of the village community who

will benefit from the Project. Initial screening of the potential IPs presence will be done using the

World Bank IPs Screening Study 201037. Further screening/verification will be done at the village

level:

a. based on the above four criteria of IPs;

b. confirmation from the village apparatus and TPK on the presence of IPs;

c. confirmation from the village apparatus and TPK whether the IPs are part of the

beneficiaries or only affected (positively and negatively) by the activity;

d. a-c above will have to be verified by the PTPD, PD and the PLD during the review of the

draft RKPDes and APBDes.

8.8 Assessment of IPs as beneficiaries or affected by an activity

121. Once the IPs presence in a village is confirmed, the village government has to carry out the

following:

a. village apparatus and TPK will assess whether the IPs will be part of the beneficiaries of

the activity or will be the sole beneficiaries of the activity, or will only be affected

(positively or negatively) by an activity;

b. a free, prior, informed consultation (FPIC, see Annex 17) with the affected IPs and seek

and agree on the potential impacts and/or benefits for the IPs, and their aspirations and

needs for addressing the adverse impacts or to maximize the benefits.

c. documentation of the consultations process, agreements and aspiration and needs of the

consulted IPs community with a format of Social Assessment (SA). An example of the SA

format is presented in Annex 14, and a sample format for documentation of the consultation

process are provided in Annex 16.

8.9 Indigenous Peoples Plan (IPP) and Sub-Project Design

122. In the case that a sub-project affects the IPs, the village government or TPK will prepare

an Indigenous Peoples Plan (IPP) based on the results of the Social Assessment. Example of the

IPP format is presented in Annex 15. The TPK will have to carry out FPIC for the preparation of

the IPP, to agree on the types, intensity, timing, target groups, and resources of the measures that

will address the adverse impacts and/or that will accommodate the aspirations and needs of the

affected IPs. The PLD will facilitate the consultations. The draft IPP should be agreed by both the

affected IPs community and by the village government or TPK, should be reviewed by the PTPD,

PD and PLD and approved by the PIUs and World Bank.

123. In the case that IPs community is part or the sole beneficiaries of the sub-project, the village

government or TPK will include the aspirations and needs of the IPs beneficiaries in the sub-project

design. The sub-project design should be consulted (FPIC) with the IPs beneficiaries. The village

government or TPK, with the facilitation of the PD-TI or consultant who assist the village

government in designing the sub-project should carry out such consultation.

37 Refer to Annex 20 for the potential IPs presence, based on the World Bank IPs Screening Study (2010)

55

124. IPP and sub-project design should be disclosed at the community level prior to the start of

construction (see also Section 9 on public consultations and disclosures).

125. As mentioned in Sections 3, 5 and 6, elements described in Section 8.7, 8.8 and 8.9 above

will inform the mainstreaming of the Component 1, 2, and 4.

9. PUBLIC CONSULTATIONS AND DISCLOSURES

Public consultations and disclosures of the ESMF

126. The Project (PIU of MoHA and PIU of MoV) carried out public consultations during

January 14-15, 2019 on the Draft ESMF to obtain constructive inputs from the relevant

stakeholders to strengthen the design of the mainstreaming environmental and social sustainability

in the Project. Draft ESMF (in English and Bahasa) was disclosed in

http://binapemdes.id/informasi prior to the public consultation.

127. Public consultation was attended by representatives of DPMD from 33 provinces and 39

districts, as well as five NGOs. One of the important feedbacks received was that on the

practicability of the implementation of the mainstreamed objectives, key principles and

requirements of the environmental and social sustainability in various manuals, guidelines and

training modules, and the implementation of the safeguards instruments at the village level, given

the nature of the subprojects that are relatively small investments. Details of discussions during

public consultations and list of participants are presented in Annex 20. The draft final ESMF will

be uploaded in the MoHA and MoV’s websites (English and Bahasa) and the Bank’s Infoshop

(English) prior to appraisal.

Public consultations and disclosures of the implementation of Component 1, 2 and 3

128. PIUs of MoHA and MoV will consult relevant stakeholders including provincial

governments, district governments, sub-districts and village governments as well as facilitators and

representatives of IPs during the preparation of the improved manuals, guidelines and training

modules so that these documents will reflect the real situation and needs, also test their applicability

on the ground. At the village level, as required by various manuals and guidelines issued by the

MoHA and MoV, all plans (RPJMDes, RKPDes, APBDes, Work Plan of Activity and sub-project

design) will have to be prepared and implemented in consultations with the villagers and these

documents will have to be disclosed through various venues, such as community boards, local

media, website (as available), etc.

129. Manuals, guidelines and training modules will be disclosed in the MoHA and MoV’s

websites and through the digitalized system so that they will be accessible for public including

relevant stakeholders involved in the Village Law implementation. The learning management

system will include e-learning system whereby improved learning modules will be easily accessed

by the villagers and facilitators.

56

130. The preparation of the environmental and safeguards instruments for Component 3, such

as the UKL-UPL, SPPL, ECOPs (as relevant)38, as well as identification of IPs, and IPP will be

done during the preparation of the sub-project design of the activities financed by the performance

grants. The TPK will consult the villagers especially the affected persons during the preparation

and implementation of the UKL-UPL, SPPL, ECOPs, IPP. These instruments will be disclosed in

the village offices or other venues accessible to the villagers and affected persons along with the

sub-project design.

10. GRIEVANCE REDRESS MECHANISMS (GRM)

131. These days, an individual or group or community can file complaints or request for

information or submit an inquiry about the implementation of Village Law through various venues,

that is open to public, fast and relatively without cost. At the central level, the Project provides at

least three channels for public to file complaints and receive responses. These are managed by the

MoHA, MoV and the Ministry of State Apparatus Empowerment (KemenPAN). While at the

village level, villagers are provided complaint handling system managed by the village apparatus

as required by the regulations and/or during the public consultations for the preparation of the

RPJMDes, RKPDes and APBDes. PIU of MoHA and PIU of MoV will work together with the staff

in charge of complaint handling system in each of the Ministry and monitor the status and as needed

will provide the necessary follow-up. The MIS of the Project will also record complaints

documented at the village level. Detail explanation is presented below:

132. MoHA (Executing Agency and CPIU of the Project) operates a GRM through application

for complaints and aspirations called “SAPA”. Public can access the system through

http://www.sapa.kemendagri.go.id. This application is integrated with the GRM system in each of

the district’s website (www.name of district.go.id), which allow one-stop service for complaint

handling. SAPA application is also available in mobile phone (at the moment, it is only available

from play store for Android). Public complaints and aspirations will be forwarded to relevant

agencies including districts. The person in charge of managing the GRM will monitor the follow-

up process of the incoming complaints, and the complainants also can monitor the progress of the

follow-up through the system. The system seems to be using real time and provides information on

the types of complaints (i.e. those related to regulation, permit, area boundary and land,

bribery/corruption, misused of authority, violation, village government, regional development, and

others). Information on the status of complaints (received, being followed-up, and completed) and

on the satisfaction levels (satisfy, not satisfy) of the complainants is available.

133. The MOV (CPIU of this Project) has a GRM system with various venues to receive

complaints, questions and aspirations. One system, called “Village Complaints”, uses call center

38 For various types of village infrastructure, see practical Manual of “The DOs and DON’Ts: Environmental Management:

General Considerations-Site Screening-Construction Site Management, Roads, Water Supply, Sanitation, Solid Waste

Management, Markets, Rivers” prepared by the PNPM-Rural Project. This Guidance Book, English version can be accessed

through http://documents.worldbank.org/curated/en/925701495170561883/The-dos-and-the-donts-environmental-

management-general-considerations-site-screening-construction-site-management-roads-water-supply-sanitation-solid-

waste-management-markets-and-rivers. This Guidance Book, Bahasa Indonesia version can be accessed through

http://documents.worldbank.org/curated/en/188631468042887318/Baik-and-buruk-pengelolaan-lingkungan.

57

(1500040) and short message numbers (081288990040 and 0877 8899 0040), twitter and face book.

Complainants can also come in person to the PPID in the Ministry Office. Another channel for

filing complaints is an application called “LAPOR”, initiated by the President Office and now

managed by the Ministry of State Apparatus Empowerment (KemenPAN). In addition, the MOV

has just launched application for complaint handling accessible in its website. Shor-text Messages

(SMS) is the most popular venue for complaints. The GRM is managed by the Office for

Information and Complain Service (IPP) that records complaints, forwarded complaints to relevant

directorate general offices, and monitor and records the follow-up. In 2017, about 78.5% of the

complaints/inquiries/aspirations received related to the issues under the domain of Directorate

General for Village Development and Empowerment (DG PPMD). Popular issues were about

village funds.

134. At the village level, Permendagri No. 114/2014 stipulated that the village should have a

complaint handling management system. The head of the village is responsible for managing and

processing, as well as in following-up the complaints, and in documenting the complaints as well.

Villagers may also file complaints during the public consultations for preparing village plans,

namely, RPJMDes, RKPDes, and APBDes. This complaint handling management system will

benefit the planning process that includes the ESS aspects.

Bank Grievance Redress System (GRS)

135. Communities and individuals who believe that they are adversely affected by a World Bank

(WB) supported project may submit complaints to existing project-level grievance redress

mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints

received are promptly reviewed in order to address project-related concerns. Project affected

communities and individuals may submit their complaint to the WB’s independent Inspection Panel

which determines whether harm occurred, or could occur, as a result of WB non-compliance with

its policies and procedures. Complaints may be submitted at any time after concerns have been

brought directly to the World Bank's attention, and Bank Management has been given an

opportunity to respond. Grievance received for activities that are not financed by the performance

grants financed by the Project under Component 3 are not eligible under the Bank’s GRS.

Verification on the complaints submitted to the Bank’s GRS will be done prior to the follow-up.

For information on how to submit complaints to the World Bank’s corporate Grievance Redress

Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-

services/grievance-redress-service. For information on how to submit complaints to the World

Bank Inspection Panel, please visit www.inspectionpanel.org.

11. INSTITUTIONAL ARRANGEMENTS FOR IMPLEMENTING THE

ENVIRONMENTAL AND SOCIAL SUSTAINABILITY ASPECTS

136. As explained in the Section 1.4 above, the structure of responsibilities of ESS capacity

building and institutional system strengthening and improvement will follow the current

responsibility structure between the MoHA, MoV, the provincial and district governments of the

58

relevant tasks in the implementation of the Village Law (see also Section 5 and 6; and Annex 1).

A summary of the proposed arrangements are as follows39:

Table 4: Responsible Agencies for Mainstreaming and Strengthening the ESS Aspects

Manuals/Guidelines/ Training

Modules

Elements of

strengthening areas40

PIU MoHA

(and assisted

by the

national

consultant)

PIU MoV

(and assisted

by the

national

consultant) - Village Development Guidelines Improvement of the

existing environmental and

social sustainability

aspects

X

- Village Financial Management Add environmental and

social sustainability

aspects

X

- Guidelines for Decision Making

Procedures and Mechanisms in Village

Consultations

Add environmental and

social sustainability

aspects

X

➢ Village Mentoring Add environmental and

social sustainability tasks,

particularly the PLD

X

➢ Priority for the Utilization of Dana Desa

2019

Add environmental and

social sustainability

aspects

X

➢ Or, develop new Technical Guidelines

on Environmental and Social

Sustainability for the Implementation of

Village Law

As relevant, leverage

lessons learned and the

PNPM-Rural Technical

Operational Guidelines

X X

Training Modules

➢ Pre-assignment training modules for

village facilitator for infrastructure (PD-

TI)

Improvement of the

existing environmental

and social sustainability

aspects

X

➢ Pre-assignment training modules for

village facilitator for empowerment (PD-

P)

Add environmental and

social sustainability

aspects

X

➢ Pre-assignment training modules for

local village facilitator (PLD)

Add environmental and

social sustainability

aspects

➢ Training modules for village apparatus

and village community group (LKM,

KPMD, etc.) in preparing the RPJMDes,

RKPDes and APBDes

Add environmental and

social sustainability

aspects

X,

Provincial

and/or District

DPMD,

Provincial

Balai

X,

Provincial

DPMD and/or

District

DPMD,

Provincial

Balai

Awareness Training

- Awareness training modules for the

preparation and implementation of

RPJMDes, RKPDes for the TAPMD (esp.

TA-ID), PTPD, officials of DPMD, and

District Inspectorate (new), provincial

Develop new modules -

substance of

environmental and social

sustainability are

mainstreamed

X X,

Provincial

DPMD

39 Refer to Table 3 on the detail elements of strengthening areas in Section 6. 40 Improvement or additional of the elements of the environmental and social sustainability aspects vary among

these guidelines/training modules depending on the users/target groups.

59

Manuals/Guidelines/ Training

Modules

Elements of

strengthening areas40

PIU MoHA

(and assisted

by the

national

consultant)

PIU MoV

(and assisted

by the

national

consultant) satker

Integrated Data-based Management/

InfoDesa

Develop attributes related

to information on the

environmental and social

sustainability aspects

X and MOF X and MOF

Terms of References

137. TAPMD (esp. TA-ID)

138. PD-TI

139. PD-P

140. PLD

Add tasks for providing

oversight and/or

mentoring in ensuring

environmental and social

sustainability aspects are

considered in the

RPJMDes, RKPDes,

APBDes, Activity Design

X

X

X

X

Performance Criteria Include ESS aspect as

relevant

X X

Socialization of the Performance Criteria to

the villages, sub-districts, and districts

X X

Socialization and training for the BPKP

on the performance criteria

X X

Integrated data-based management Include attributes related

to ESS aspects, such as

information on IPs, natural

resource development, etc.

X X

137. At the village level, the proposed institutional arrangements for the sub-project financed by

the performance grants are summarized as follows:

a. Sub-project screening and potential impacts identification will be done by the TPK

b. TPK will have to ensure that documentation of the screening and instruments (such as

SPPL, VLD, IPP as relevant, etc.) are prepared in consultations with the affected persons.

Consultations, agreements and disagreements should be documented and well-kept.

c. PD-TI will assist the TPK in ensuring that the sub-project design accommodates the

recommendations of the safeguards instruments, ECOPs41, SPPL, aspirations and needs of

the IPs community, etc.

d. The safeguards instruments should be verified by the PLD and PD-TI. PTPD will review

the screening and instruments prepared and provide inputs and approval for instrument that

does not need approval from the relevant local agencies. The head of the village will have

41 For various types of village infrastructure, see practical Manual of “The DOs and DON’Ts: Environmental Management:

General Considerations-Site Screening-Construction Site Management, Roads, Water Supply, Sanitation, Solid Waste

Management, Markets, Rivers” prepared by the PNPM-Rural Project. This Guidance Book, English version can be accessed

through http://documents.worldbank.org/curated/en/925701495170561883/The-dos-and-the-donts-environmental-

management-general-considerations-site-screening-construction-site-management-roads-water-supply-sanitation-solid-

waste-management-markets-and-rivers. This Guidance Book, Bahasa Indonesia version can be accessed through

http://documents.worldbank.org/curated/en/188631468042887318/Baik-and-buruk-pengelolaan-lingkungan

60

to agree on the screening and mitigation measures as specified in the safeguards

instruments (SPPL, IPP, ECOPs42 etc.)

e. Approved safeguards instruments should be part of the sub-project proposal or plan.

f. The instruments have to be disclosed by the TPK in the venue and in a way that villagers

can easily access the information.

g. Budget for the mitigation measures should be part of the overall sub-project costs.

h. PD-TI will supervise the implementation of the activities or physical investments, and

PTPD will have to monitor and provide advice to the TPK or community groups who are

implementing the activities or physical investment

i. The local environmental agency and the relevant local agency (such as public works for

sub-project on road for instance) will have to review the safeguards instruments

(particularly the SPPL) and mitigation measures whether technically sound and appropriate

in accordance with the type and intensity of impacts.

12. CAPACITY BUILDING PLAN

138. The mainstreaming and strengthening of the ESS aspects in the Implementation of the

Village Law will be carried out gradually and continuously along with the digitalization or

development of the e-system of the capacity building and training deliveries, market place,

harmonization of regulations and integrated data base management. The proposed capacity

building plan is presented in the Table 5.

139. The national consultant team will assist the PIU MoHA and PIU MoV to strengthen the

manuals, guidelines, training materials and providing ToTs to the provincial PIUs (or Pokjas) and

provincial consultant teams (refer also to Section 5 and 6 for the elements of mainstreaming, and

Annex 1 on the Project Implementation Structure and Arrangements). Subsequently, the provincial

PIUs and consultant teams will provide TOTs to the district DPMDs and consultant teams, as well

as the TAPMDs. The DPMDs of the districts with the assistance of the consultant teams will then

train the village apparatus, PDs and PLDs. The timing of the training at various levels can be

parallel depending on the readiness of each level.

140. The costs for the capacity building related to mainstreaming and strengthening of the ESS

aspects will be borne by the APBN Rupiah Murni as part of the MoHA and MoV budgets for

capacity building, monitoring and supervising the implementation of the Village Law. As needed,

additional budget needs could be financed by the Project.

Table 5:

Proposed Capacity Building Plan for Mainstreaming and Strengthening the ESS Aspects

42 For various types of village infrastructure, see practical Manual of “The DOs and DON’Ts: Environmental Management:

General Considerations-Site Screening-Construction Site Management, Roads, Water Supply, Sanitation, Solid Waste

Management, Markets, Rivers” prepared by the PNPM-Rural Project. This Guidance Book, English version can be accessed

through http://documents.worldbank.org/curated/en/925701495170561883/The-dos-and-the-donts-environmental-

management-general-considerations-site-screening-construction-site-management-roads-water-supply-sanitation-solid-

waste-management-markets-and-rivers. This Guidance Book, Bahasa Indonesia version can be accessed through

http://documents.worldbank.org/curated/en/188631468042887318/Baik-and-buruk-pengelolaan-lingkungan

61

Manuals/Guidelines/ Training

Modules

Elements43 of

strengthening areas44

Target Year

- Village Development Guidelines Improvement of the

existing environmental and

social sustainability

aspects

PIU of MoHA 1 - 2

- Village Financial Management Add environmental and

social sustainability

aspects

PIU of MoHA 1-2

- Guidelines for Decision Making

Procedures and Mechanisms in Village

Consultations

Add environmental and

social sustainability

aspects

PIU of MoV 1-2

➢ Village Mentoring Add environmental and

social sustainability tasks,

particularly the PLD

PIU of MoV 1-2

➢ Priority for the Utilization of Dana Desa

2019

Add environmental and

social sustainability

aspects

PIU of MoV 1-2 (also for

utilization for

Dana Desa

2020)

➢ Or, develop new Technical Guidelines

on Environmental and Social

Sustainability for the Implementation of

Village Law

As relevant, leverage

lessons learned and the

PNPM-Rural Technical

Operational Guidelines

PIU of MoHA

and PIU of

MoV

1

Training Modules

➢ Pre-assignment training modules for

village facilitator for infrastructure (PD-

TI)

Improvement of the

existing environmental

and social sustainability

aspects

PD-TI Training, year-

1 onwards

➢ Pre-assignment training modules for

village facilitator for empowerment (PD-

P)

Add environmental and

social sustainability

aspects

PD-P Training, year-

1 onwards

➢ Pre-assignment training modules for

local village facilitator (PLD)

Add environmental and

social sustainability

aspects

PLD Training, year-

1 onwards

➢ Training modules for village apparatus

and village community group (LKM,

KPMD, etc.) in preparing the RPJMDes,

RKPDes and APBDes

Add environmental and

social sustainability

aspects

MoHA, MoV

Provincial

and/or District

DPMD,

Provincial

Balai of MoHA

and MoV)

1-2;

Training, year-

1 onwards

Awareness Training

- Awareness training modules for the

TAPMD (esp. TA-ID), PTPD, officials of

DPMD, and District Inspectorate (new),

provincial satker as well as for the Tim

Pelaksana Kegiatan (Activity Implementor

Team) at the village level on the

environmental and social sustainability

aspects in the preparation and

implementation of the RPJMDes,

RPKPDes, APBDes, and activity design

Develop new modules -

substance of

environmental and social

sustainability are

mainstreamed

Provincial

DPMD, PTPD,

officials of

DPMD, and

District

Inspectorate

(new),

provincial

satker

1-2;

Training,

year-1 onwards

Integrated Data-based Management/

InfoDesa

Develop attributes related

to information on the

X and MoF 1-2

43 Refer to Table 3 in Section 6 on the details of elements of strengthening areas. 44 Improvement or additional of the elements of the environmental and social sustainability aspects vary among

these guidelines/training modules depending on the users/target groups.

62

Manuals/Guidelines/ Training

Modules

Elements43 of

strengthening areas44

Target Year

environmental and social

sustainability aspects

Terms of References

141. TAPMD (esp. TA-ID)

142. PD-TI

143. PD-P

144. PLD

Add tasks for providing

oversight and/or

mentoring in ensuring

environmental and social

sustainability aspects are

considered in the

RPJMDes, RKPDes,

APBDes, Activity Design

PIU of MoV 1

Performance Criteria Include ESS aspect as

relevant

PIU of MoHA

and PIU of

MoV

1-2

Socialization of the Performance Criteria to

the villages, sub-districts, and districts

PIU of MoHA

and PIU of

MoV

2

Socialization and training for the BPKP

on the performance criteria

BPKP 2

Integrated data-based management Include attributes related

to ESS aspects, such as

information on IPs, natural

resource development, etc.

PIU of MoHA

PIU of MoV

1-3

13. MONITORING AND EVALUATION

141. Monitoring and evaluation of the implementation of the ESMF will be part of the overall

monitoring and evaluation of the Project. Indicators of mainstreamed ESS provisions will be part

of the Results Framework and Monitoring of the Project (for details refer to Project Appraisal

Document Chapter VI), particularly the Intermediate Results Indicators (monitored annually),

among others as follows:

a. E-learning platform for needs-based capacity building for village apparatus and institutions

established and fully operational

b. Villages where women representatives trained on village development-related core

modules (participatory planning, budgeting, monitoring)

c. Village allocate budget for needs-based village aparatus and BPD capacity building plan.

142. Monitoring for the implementation of activities supported by the performance grants will

be done by the district PIU and the PTPD. As needed the district environmental agency (DEA) and

PTPD will guide the village apparatus particularly the Tim Pelaksana Kegiatan in preparing and

implementing the safeguards instruments. Monitoring of the implementation of the safeguards

instruments will be done periodically along with the completion of each disbursement stage of the

performance grants.

143. Results of evaluation will be used to adjust the ESS mainstreaming in the capacity building

and institutional system strengthening system.

14. BUDGET TO IMPLEMENT THE ESMF

63

144. It is obvious that the implementation of the ESMF elements will be integrated into the

overall Project implementation (refer to Section 5 and 6 on the elements of mainstreaming, and

Annex 1 on Project Implementation Structure and Arrangements). Budget to implement the ESMF

will be part of the costs of the activities under each component as ESS will be mainstreamed in

such activities. The Project will have to ensure that the activities related to the implementation of

ESMF below are properly included in the budget for implementing the activities under each

component:

Component 1 (MoHA):

a. Consultants to strengthen the manuals on Village Development and guidelines on Village

Financial Management

b. Workshops during the development of manuals and guidelines

c. Socialization of the improved manuals and guidelines to provinces, districts, sub-districts and

villages

d. Consultants for the website designer who include the updated manuals and guidelines especially

the ESS elements

e. Consultants to develop training modules for village apparatus in preparing the RPJMDes,

RKPDes and APBDes

f. Resource persons and logistics to implement the training modules for village apparatus in

preparing the RPJMDes, RKPDes and APBDes (provincial and/or district DPMD and provincial

Balai may contribute to the costs)

g. Implementation of awareness training modules for the TAPMD (esp. TA-ID), PTPD, officials

of DPMD, and District Inspectorate (new), provincial satker as well as for the Tim Pelaksana

Kegiatan (Activity Implementor Team) at the village level

h. Consultants to develop integrated data base management

i. Monitoring and supervision of CPIU, DPIU and District PIU

j. Consultants, pre-test and implementation of the development of digitalized tools, learning

management system, and e-learning etc., particularly the inclusion of the ESMF elements

Component 2 (MoV):

a. Consultants to improve the Guidelines for Decision Making Procedures and Mechanisms in

Village Consultations

b. Workshops in preparing the Guidelines for Decision Making Procedures and Mechanisms in

Village Consultations

c. Socialization of the Guidelines for Decision Making Procedures and Mechanisms in Village

Consultations to villages

d. Consultants to improve the Guidelines for Village Mentoring

e. Workshops in preparing the Guidelines for Village Mentoring

f. Socialization and training of the Guidelines for Village Mentoring for the facilitators

g. Consultants to improve the Guidelines for Priority for the Utilization of Dana Desa

h. Workshops in preparing the Guidelines for Priority for the Utilization of Dana Desa

i. Socialization of the Guidelines for Priority for the Utilization of Dana Desa

j. Consultants for improving the pre-assignment training modules for village facilitator for

infrastructure (PD-TI)

64

k. Consultants for improving the pre-assignment training modules for village facilitator for

empowerment (PD-P)

l. Consultants for improving the pre-assignment training modules for local village facilitator (PLD)

m. Resource persons and logistics to deliver the training modules for village community group

(LKM, KPMD, etc.) in preparing the RPJMDes, RKPDes and APBDes (provincial and/or

district DPMD and provincial Balai may contribute to the costs)

n. Resource persons and logistics to deliver the training modules for the PD-TI, PD-P and PLD

o. Implementation of awareness training modules for the TAPMD (esp. TA-ID), PTPD, officials

of DPMD, and District Inspectorate (new), provincial satker as well as for the Tim Pelaksana

Kegiatan (Activity Implementor Team) at the village level

p. Consultants to develop Terms of References for TAPMD, PD-TI, PD-P and PLD

q. Consultants to develop integrated data base management

r. Monitoring and supervision of CPIU, Provincial PIU and District PIU

s. Consultants, pre-test and implementation of the development of digitalized tools and market

place, learning management system, e-learning etc., particularly the inclusion of the ESMF

elements.

Component 3 (MoHA):

a. Consultants to develop the performance criteria whereby negative list is part of

b. Socialization of the performance criteria

c. Resource persons and logistics for delivering training for BPKP on the performance criteria

d. Consultants and BPKP to implement the performance criteria during the village selection

e. Consultants, PIU of MoHA, and/or District PIUs to monitor the implementation of the negative

list

Component 3 (Villages):

a. Prepare and implement environmental and social instruments

b. Prepare sub-project design

c. Specific training as needed

Component 4 (BAPPENAS and/or MoF):

a. Consultants for developing the InfoDesa related to ESMF elements

b. Coordination, monitoring and supervision for the implementation of ESMF

145. The Project estimates that for implementing the ESMF elements roughly it would cost US$

1 million. This initial rough estimation will be contributed by the Project funds and Rupiah Murni,

namely, APBN, provincial and district governments and village budget. Below is the summary of

activities and responsible parties for providing the needed budget that should be included in the

overall Project financing.

Table 6:

Cost Components and Responsible Agencies to Provide Budget for the Implementation of the

Mainstreaming and Safeguards in Component 3 as Specified in this ESMF

Manuals/Guidelines/ Training Modules PIU MoHA

(Budget Component 1)

PIU MoV

(Budget Component 2)

- Village Development Guidelines X

65

Manuals/Guidelines/ Training Modules PIU MoHA

(Budget Component 1)

PIU MoV

(Budget Component 2) - Village Financial Management X

- Guidelines for Decision Making Procedures

and Mechanisms in Village Consultations

X

➢ Village Mentoring X

➢ Priority for the Utilization of Dana Desa

2019

X

➢ Or, develop new Technical Guidelines on

Environmental and Social Sustainability for

the Implementation of Village Law

X X

Training Modules

➢ Pre-assignment training modules for village

facilitator for infrastructure (PD-TI)

X

➢ Pre-assignment training modules for village

facilitator for empowerment (PD-P)

X

➢ Pre-assignment training modules for local

village facilitator (PLD)

X

➢ Training modules for village apparatus and

village community group (LKM, KPMD,

etc.) in preparing the RPJMDes, RKPDes

and APBDes

X,

Provincial and/or District

DPMD,

Provincial Balai

X,

Provincial DPMD and/or District

DPMD,

Provincial Balai

Awareness Training

- Awareness training modules for the TAPMD

(esp. TA-ID), PTPD, officials of DPMD, and

District Inspectorate (new), provincial satker

as well as for the Tim Pelaksana Kegiatan

(Activity Implementor Team) at the village

level on the ESS aspects in the preparation and

implementation of the RPJMDes, RPKPDes,

APBDes, and activity design

X X,

Provincial DPMD

Integrated Data-based Management/

InfoDesa

X and MOF X and MOF

Terms of References

145. TAPMD (esp. TA-ID)

146. PD-TI

147. PD-P

148. PLD

X

X

X

X

Performance Criteria X X

Socialization of the Performance Criteria to the

villages, sub-districts, and districts

X X

Socialization and training for the BPKP

on the performance criteria

X X

Integrated data-based management X X

Village level

Specific training needs APBDes

Prepare and implement environmental and

social instruments

APBDes

Prepare sub-project design APBDes

66

ANNEX 1: PROJECT IMPLEMENTATION STRUCTURE AND ARRANGEMENT

Overview

1. Key objective. A key objective of the project is to strengthen and support the Government’s

own implementation structure for Village Law funding, in order to put in place a sustainable and long-

term system for improved village development. As such, the project looks first to the systems, processes

and institutions in place to support villages, and aims to strengthen and transform these to be more cost

effective, efficient and adaptive to the varied needs of villages. The project will develop new systems

for the delivery of capacity building support to village governments, as well as for learning and capacity

building for communities, and expanding service delivery options through marketplace models.

Project Coordination and Collaboration

2. National Coordination Platform. The project will support formalizing the existing

coordination mechanism currently functioning under Kemenko PMK, that brings together relevant

agencies involved in implementing programs at the village level. The National Coordination Platform

(NCP) will bring together Bappenas, MoHA, MoV, MoF, the National Statistical Bureau (BPS), and

BPKP, and would be chaired by Kemenko PMK. A Secretariat would be established under Bappenas

to support the NCP, preparing reviews or documents as needed. The NCP will be responsible for Project

coordination at the central level and will: discuss and resolve issues that require inter-ministerial

decisions, support policy developments, and monitor achievement of national targets for village

development. In addition, the NCP will have a role in ensuring that the project reaches the PDO, that

incentive mechanisms are developed, and that there is consistency among the policies adopted by

central PIUs. The NCP will act as the Steering Committee for the project.

3. Project Coordination at Provincial and Municipality/District Levels. At the sub-national

level, working groups (Kelompok Kerja/Pokja), or an existing committee with similar functions will be

identified that would serve to strengthen coordination and oversight at each level. These would draw

on strengthening existing mechansims, where relevant, and would support coordination of local policies

relevant to village development and capacity building, and foster collaboration among institutions and

sectors.

Project Implementation Structure

4. Executing Agency and Implementing Unit. The Executing Agency of the Project will be

positioned at the Directorate General of Village Government (Direktorat Jendral Bina Pemerintahan

Desa) within MoHA. Two Central Project Implementation Units (CPIUs) will be established and led

by an Echelon 2 under MoHA’s Directorate General of Village Government (Direktorat Jendral Bina

Pemerintahan Desa) and MoV’s Directorate General of Village Development and Empowerment

(Direktorat Jendral Pembangunan dan Pemberdayaan Masyarakat Desa). Central PIUs will be

supported by technical, financial and administrative staff in each implementing agency, ensuring sound

financial, procurement, contract management, safeguards and overall project implementation conform

with the World Bank policies. Central PIUs will also be responsible for ensuring achievement of the

PDO and KPIs, improving relevant policies and regulation, and ensuring that expenditures are

consistent with the intended activities and outputs. The CPIU within MoHA will manage Components

1 and 3, and the CPIU within MoV will manage Component 2. In each central PIU, a secretariat will

be established with participation of directorates within the respective DGs.

67

5. Secretariat for Program Coordination and Collaboration. Under the National Coordination

Platform, a Secretariat will be established under BAPPENAS, to ensure that coherent policies are

adopted by central PIUs, establish collaborative technical support and a joint monitoring mechanism,

monitor achievement of target KPIs and implementation of the work plan, and recommend performance

grants for village governments. The Secretariat will support the functioning of the National

Coordination Platform, which, in turn, will ensure participation of various central ministries involved

in village development and capacity building activities.

Table 1: Roles and Responsibilities of Each Ministry and Central Institution

Institutions Roles and Responsibility

BAPPENAS Overall program coordination and collaboration, and responsible for

implementing Component 4: National Coordination, Monitoring and

Supervision

Kemenko PMK Coordination of policies and regulations, and together with BAPPENAS,

support to the implementation of Component 4: National Coordination,

Monitoring and Supervision

MoF Support to the budget release for village governments, disbursement of loans,

and rupiah murni funds, as well as support to the timely release of incentive

grants to village governments

MoHA Implementation of Components 1: Strengthening Village Government

Institutions and 3: Strengthening Village Government Performance, as well

as administrative coordination to consolidate and prepare annual project

financial reports and quarterly IFRs.

MoV Implementation of Component 2: Promoting Participatory Village

Development, and support to the implementation of Component 3:

Strengthening Village Government Performance

BPKP Support outputs verification of performance-based grants under Component 3

BPS Support data provision under the integrated information management system

led by the Secretariat

Note: The above roles and responsibility include those of specified in Section 5, 6, 11 and 12 of this ESMF.

6. Provincial PIUs. PIUs will be established at the provincial level to: (a) mobilize technical

support, (b) establish partnerships with provincial-based institutions and sectors, (c) produce training

modules in line with regional development policies and priorities, (d) review and provide clearance to

annual work plans for CB submitted by the municipality/district, (e) recommend districts to receive

grants based on performance, (f) carry out regular supervision, monitoring and evaluation by utilizing

the web-based and mobile integrated information system, (g) undertake quality control and provide

support and coaching to districts in CB activities, and (h) allocate Provincial APBD for CB activities

specifically relevant to provincial priorities.

7. District PIUs. District PIUs will be in charge of project implementation at the district level.

Their roles include: (a) monitoring the implementation of activities and budget allocation, and

achievement of KPIs; (b) establishing PTPDs and coaching clinics; (c) establishing partnerships with

district-based institutions and sectors, (d) managing CB for villages (both for apparatus and

communities) at district level; (e) carrying out supervision and monitoring to PTPD performance and

68

CB delivery by utilizing the web-based and mobile integrated information system; (f) ensuring the

quality of CB delivery (i.e. quality control, feedback mechanism, etc.); (g) supervising PTPD in

implementing village CB plans; (h) organizing assessment of village CB needs; (i) producing training

modules in line with district development policies and priorities, and (j) reviewing the performance of

villages in CB, and proposing incentives accordingly.

8. Subdistrict PTPDs. At the subdistrict level, PTPDs will be established based on a Decree of

the Bupati/Mayor, as part of the village CB program. PTPD will be responsible, among other tasks, for:

(a) carrying out needs assessments, and verifying village proposals for CB; (b) developing annual work

programs for CB at village and subdistrict level; (c) arranging the delivery of the training at subdistrict

and village level; (d) coordinating peer-learnings and identifying sectoral and technical support needs;

and (e) managing supervision, monitoring, evaluation and feedback at the subdistrict level, locally in

each subdistrict.

9. Village Governments and Institutions. Village governments and institutions are responsible

for: (a) identifying the CB needs and submitting proposals for learning, (b) allocating APBDesa for

attending the trainings, printing the training materials and providing the adequate instruments

(smartphones or tablet), and (c) managing CB activities at the village level, including establishing a

learning forum (or kelompok belajar) and selecting champions for learning at the village level.

Advisory and Technical Support

10. Advisory Support. Advisory support will be deployed to support the Secretariat under

BAPPENAS and Kemenko PMK. This will support the central institution in drafting relevant

regulations and guidance for improving the mechanisms for budget transfers, creating incentives for

villages to improve their budgetary performance, developing sectoral support as needed, advising

institutional strengthening activities, etc.

Figure 1. Organizational Structure of the Project

11. National Management Consultant (NMC). The NMC team will be mobilized at the central

level to support both CPIUs within MoHA and MoV. The NMC will be responsible for daily overall

program management, including strengthening the technical and institutional capacities; carrying-out

Project supervision, monitoring, spot-checks, and evaluation of outputs and outcomes; strengthening

sustainability of Project outcomes, and managing the web and mobile based CB. The NMC will include

69

various technical experts across a range of disciplines. Members of the NMC team will serve central

PIUs during the life of the Project contingent on their annual performance.

12. Provincial and District Consultant Teams, and Subdistrict Facilitators. These teams will

be contracted at the provincial level, and will operate at the provincial, district and subdistrict levels.

The recruitment will be jointly managed by central and provincial PIUs through the establishment of a

joint recruitment committee. The joint recruitment committee will develop selection criteria, which will

be used as part of the annual performance review of the teams. All recruitment processes will be

managed and recorded through the web-based integrated information system. Teams will be mobilized

to service for three years, contingent on annual performance.

Implementation Arrangements and Stages

13. Project Cycle. Project management will follow annual cycles, and will involve the

stakeholders depicted in Figure 1. The annual cycle will include the following activities:

a. Planning activities will include needs assessments; annual work-planning and budget

allocation; organizing communities, local institutions and village government apparatus

(including key champions); and learning events at the village, subdistrict or district levels.

b. Implementation activities include training of trainers (if applicable), socialization of the

learning events, distribution of training modules and supplemental tools and instruments, and

registration and recording of the learning events.

c. Feedback and evaluation and learning performance reviews include: review of the contents of

trainings, instruments used, delivery methodology and training duration,

attendees’/participants’ feedback, and the trainer/learning facilitators performance. All

feedback and training evaluation will be submitted through a web-based system. The learning

performance review (for district, subdistrict and village levels) will be carried out against pre-

determined criteria.

d. Follow-up activities conducted after the CB is implemented and reviewed, i.e. coaching clinics,

visits to selected villages for refresher learning/trainings, community or village apparatus

knowledge sharing activities (kelompok belajar), and peer-learning activities among villages.

These activities will be managed by PTPDs and subdistrict facilitators.

e. Outcome performance review. An outcome performance review will be carried out annually; it

will target learning participants based on surveys submitted through the web-based system.

Findings of the review will be used to revise the substance of the learning materials, types of

delivery, instruments used, schedule, tariff, the focus on behavior change, etc. Feedback from

the performance review will also be used by central PIUs and partner institutions for improving

and upgrading training modules and management, as well as further guidance and regulations.

Project Implementation Phases

14. The Project will be implemented in three phases. During the first year (or year and a half),

Project implementation will lay a solid foundation and begin to put in place and socialize the required

systems. During the middle years (years 2 and 3), the Project will pilot innovative modules and

instruments that are more solutions-oriented to encourage peer learning; it will also pilot performance-

based incentive mechanisms. In the longer-term (years 4 and 5), the Project will aim to maintain the

CB management system, improving/upgrading relevant policies and guidelines, and upgrading the

substance of trainings to suit recent local development needs, and bringing successful pilots and good

practices to scale, formalizing and institutionalizing them.

70

a. Short-term (Year 1): activities to be implemented in Year 1 include the following:

i. Development of basic national curriculum and expected competencies, preparation and

modification of mandatory and selected modules on compliance (on procedure,

accountability, performance, and others) and its supporting instruments (i.e.

promotional materials: flyer, video, posters).

ii. Development of program implementation guidelines and operation procedures.

iii. Mobilization of the management and support system, including identification of partner

institutions, training of trainers (to facilitate the learning process), etc.

iv. Development of a web-based integrated information system and e-learning mechanism.

v. Pilot of web-based system for mandatory training modules.

vi. Strengthening the roles of participating institutions at central, provincial, and district

levels, as well as collecting letters of interest from districts for participating in Project

activities.

b. Medium term (Years 2 and 3): activities to be implemented in Years 2 and 3 include the

following:

i. Development of expanded modules, including those provided by provincial and district

levels, and its supporting materials.

ii. Full utilization of the web-based integrated information management system.

iii. Scaling up the modules and CB delivery mechanism, including expanding the use of

partner institutions.

iv. Adoption of a structured supervision, monitoring and feedback, integrated with the

web-based information management system.

c. Longer-term (Years 4 and 5): activities to be implemented in Years 4 and 5 might include the

following

i. Strengthening the institutions for sustainable use of the web-based information

management system.

ii. Formal guidance provided for partnerships and service delivery.

iii. Abolishment of the face-to-face or facilitated training delivery, to rely only on remote

training delivery (with the exception of lagging/disadvantaged areas with limited

internet connection).

iv. National scale-up and institutionalization or formalization of changes introduced.

Phasing in of target areas

15. The project will use a phased approach during implementation. The project will begin with

implementation in 100 districts, with a view to expand into additional districts as per the sequencing

provided in the table below.

Table 2: Phasing of selected districts in the project

Administrative Units (total)/ Year Year 1 Year 2 Year 3 Year 4 Year 5

Provinces 11 19 19 33 33

Districts 100 180 250 330 380

Villages 16,773 34,137 47,038 58,502 66,496

71

16. Given that the project will use a phased implementation approach, three key criteria will

be used as conditions for entry. Interested provinces and districts must submit a letter of interest with

the following elements:

a. Establishment of Project institutions (PIUs, PTPD, and Pokja)

b. Allocation of adequate staff and budget for Project activities (including for monitoring and

supervision), and selection of self-managed CB activities

c. Commitment to comply with the Project’s operational guidelines

17. During Years 1 and 2, the number of participating districts will be limited to 180, in line

with criteria agreed jointly between BAPPENAS, MoHA and MoV. Selection criteria could include,

inter alia: (a) index of village development (Indeks Pembangunan Desa), (b) APBD allocation for CB

activities, and (c) timeliness of transfers of village funds. The Project will scale up the number of

participating villages and districts based on the capacity of PIUs to maintain and operate the web-based

systems for CB (i.e. provision of adequate modules, partnership with at least two national institutions,

and the regular use of the web-based programs by the existing participating districts).

18. Conditions for Implementation of Village CB Activities. The project will provide specific

guidance for the CB management, which will include mechanisms for:

a. Rolling out systems for improved capacity building (at village, at subdistrict, and at district

levels). Depending on the needs assessments and quality of materials, the PTPD, District PIUs

and Provincial PIUs may determine that a learning event be held in groups and accounted for

as contribution from the village, subdistrict, or district, without additional costs being borne by

the Project.

b. Delivery type: face-to-face and online (web-based) learnings. The Project will strongly

encourage the use of web-based systems, except for the first years. A waiver will be provided

for remote and lagging areas. The definition of remote and lagging areas will be based on: (a)

limited accessibility (i.e. accessible by only one mode of transport or taking more than 8 hours

of travel time), and (b) geographical conditions (i.e. island based, and border areas).

c. Type of learning: self-learning, facilitated discussions, peer learning, on the job training, and

coaching and forums (kelompok belajar).

Partnership Arrangements

19. Partnerships with national, provincial and district levels institutions will be initiated by

the Project. Partnerships will aim to strengthen the delivery of CB, improve the quality of learning

materials and its supporting instruments, encourage local ownership (from village governments and

local institutions), and support the sustainability of CB mechanisms.

20. Partnership at the national level will be managed by MoHA through the establishment of

Memoranda of Understanding, while partnerships at provincial and district levels will be

facilitated by Provincial PIUs. Selection of partner institutions will be based on competencies and will

consider a variety of services: (a) development of modules, (b) delivery of training/events, (c) provision

of trainers/co-trainers, and (d) coaching and evaluation.

21. Registration of trainers and partner institutions. Registration and verification of partner

institutions will be made through the web system, with approval by MoHA.

72

Village Performance Based Incentive Mechanism (Component 3)

22. The project will pilot test a performance-based grant to qualifying villages who meet

agreed metrics aimed to determine the performance of village governments in improving quality

of planning, budgeting and supervision. Up to fifty (50) districts will be selected to participate in the

performance-based grant program in Year 1 of the project, with all villages within their jurisdiction

having the opportunity to opt into the program. Year 1 of the program will help to finalize the selection

of the villages, and to put in place a system of assessments and reporting for the performance grant. In

Year 2 of the project, village governments will be assessed based on the agreed metrics. Those found

to qualify against quality of governance measures will be recommended to receive the grant, which

would first be disbursed at the start of Year 3 budget cycle (January). The participating villages would

be assessed each year subsequently and would receive the performance grant based on the achievement

of agreed quality metrics.

23. Districts will play a key role in the monitoring and disbursements of performance grants.

The performance-grant fund disbursement process will closely mirror village funds in that they will be

disbursed to districts, and then forwarded on to qualifying village governments for use against agreed

expenditures. The district will play a key role in signing on to the performance grant program, and will

act as the first stop to collect information on village performance to be forwarded on for assessment by

BPKP. Once the final list of villages are recommended, funds would be disbursed to the district, to on-

grant to village governments.

24. Eligible activities. As the performance-based grant is a pilot program, it will look to pilot test

different options for fund usage at the village level, to better understand what best motivates and

rewards good performance. The types of activities that could be eligible for financing under the

performance-based grant include (i) village level investments; (ii) capacity building programs for

village governments; and (iii) performance allowances for village governments. Village level

investments could include innovative activities to strengthen local economic development, women

empowerment, productivity, investment in physical infrastructure, small-scale innovative technology

for water supply, disability inclusive facilities for schools and early childhood centers, digital

infrastructure to promote connectivity, etc. There will be a brief negative list of prohibited infrastructure

types. The list of proposed activities must be included in the annual work plan of a village (or Rencana

Kerja Pemerintah Desa), and it must be consulted with and agreed by communities and local

institutions. MoHA and MoV will develop guidelines to further elaborate the criteria and transfer

mechanism for the incentives.

25. Role of BPKP. BPKP will have a role in sampling villages to verify the outputs. Eligible

outputs will be reported to MoHA and MoV, who will in turn provide recommendations to BAPPENAS

and MoF for granting the funds to the respective districts.

Monitoring and Evaluation Arrangements

26. To improve overall GoI’s capacity to collect and use data to track village development

performance, the Project will develop an integrated village data platform (InfoDesa) that will

compile key village performance data to monitor/track village capacity and development

performance. The Project has identified several village level information systems that can be used to

monitor village governance and development outcomes. These include the Prodeskel (Village Basic

Data), Siskeudes (Village FM), Sipades (Village Assets), Sipede (Village Budget and Outputs) and OM-

SPAN (Village Fund disbursement and outputs). In addition, data on basic health and education service

provisions are available from administrative data of of the Ministry of Health and the Ministry of

Education and Culture. InfoDesa will enable the GoI to pull data from these various sources and use it

73

to monitor village performance. The Project will also help strengthen existing key systems (such as

Prodeskel and Siskeudes) to ensure data availability and quality. The Project will also support

BAPPENAS and BPS to analyze data and results from InfoDesa and utilize the data to inform village

development policies and strategies.

27. The following data sources have been identified to be integrated into an integrated data

platform:

Ministries Data System Information/Variables

Ministry of Home Affair

1. Bina Pemdes Prodeskel Village Data covers:

- Village government capacity

- Population

- Resource

- Agriculture

- Basic Services

2. Dukcapil Civil Registration - Basic information on family

member and background

- Individual background

3. BPKP and District Siskeudes - Village budget

Ministry of Village SIPEDE - Village budget

- Village fund output

Ministry of Finance OMSPAN - District budget

- Village budget

Ministry of Education School - School basic information

- Student examination result

Ministry of Health

1. Basic Service Puskesmas - Puskesmas services

- Medical Staff in puskesmas

- Puskesmas Coverage

2. Balitbangkes Risfaskes - Health facility information

- Medical Staff in each health

facility

- Coverage

3. Balitbangkes Riskesdas - Health status of household

- Basic information about the

household background

Ministry of Social Affair Poverty data - The poor households

background

Geospatial Information Agency Digital Map - Border area of villages

- Agriculture map

BPS

Podes - Village basic information

- Resource

- Population and demographic

- Village government

background

- Basic services

- Agriculture

Population Census - Basic Information of

Population

Agriculture Census - Detail information about

agriculture business

74

Ministries Data System Information/Variables

Economy Census - Detail information about

business, in small to large

scale

Susenas - Household information data

in detail, including access to

education, health, finance,

and poverty program, health

status, consumption, access to

sanitation and clean water, etc

Village digital map - Village border area

Bappenas SEPAKAT - Poverty website for district

28. The integrated data portal (InfoDesa) will integrate data systems into a single portal that will

be able to update on indicators in real time. The project will also develop data dashboards for different

levels of government and to be able to filter and layer different data inputs. This data system will be

publicly available.

Figure 2. Integrated Village Data Platform (InfoDesa)

29. The Project will utilize the PIUs and TA at subdistrict/district levels to collect basic data on

activities and inputs. Data will be compiled at district and province levels and submitted to the National

Management Consultant for quarterly financial and progress reports. The Project’s PIUs will conduct

bi-annual supervision missions together with Bank’s Task Team.

30. The Project will use various mechanisms for evaluation and oversight, such as:

a. E-platform for community monitoring (SmartVillage app), an app that will enable communities

to monitor the use of village funds and their outputs

b. Village audit with BPKP

75

c. Verification protocol with BPKP to assess village performance; this will be done as part of

piloting the performance-based grant transfers to villages

d. Annual PODES (village census). The Project will support and pilot test implementation of

annual PODES with BPS to help verify some village performance indicators

e. Baseline and end line data collection, as needed

f. Mid-term and final evaluations of key Project outcomes

g. Modern electronic system for recording/monitoring procurement, payment transactions and

performance

31. In addition, the Project will conduct an impact evaluations, studies and analyses of project

investments to best capture learning under the project.

76

ANNEX 2: SOME OF THE ONGOING CAPACITY BUILDING ACTIVITIES IN THE MINISTRY OF

VILLAGE AND THE MINISTRY OF HOME AFFAIRS FOR THE IMPLEMENTATION OF

VILLAGE LAW

No. Target Group Module / curricula Duration

TRAINING FOR PROFESSIONAL FACILITATORS IN THE IMPLEMENTATION OF VILLAGE

INNOVATION PROGRAM

1. Experts of Community

Empowerment at District

level (TAPM)

Debriefing training to mentor the Working

Group of PPID and Working Group of P2KTD

5 days

2. Experts of Community

Empowerment at village

level (TAPMD)

Training to mentor the District Innovation

Team (TIK) and Village Innovation

Implementation Team (TPID) in the activities

of capturing innovation

5 days

3. District Facilitator (PD) Training to facilitate the TPID during the

implementation of PPID in the sub-district

2 days

4. Village Facilitator (PLD) Training to facilitate the village on the

innovative village plan

2 days

TRAINING ON INSTITUTIONAL DEVELOPMENT FOR VILLAGE INNOVATION PROGRAM

1. District Innovation Team

(TIK): Working Group

(WG) of Knowledge

Management (PPID); WG of

Providers of Village

Technical Capacity

Strengthening (P2KTD);

Secretary of TIK/Head of

TIK

Orientation training program to promote the

utilization of the Dana Desa for innovative

program through a well-planned and

systematic knowledge management

3-5 days

2. Village Innovation

Implementation Team

(TPID)

Debriefing training to implement the activities

of PPID in the subdistrict and village,

including the financial management of DOK-

TPID

3 days

TRAINING FOR PROVIDERS OF VILLAGE TECHNICAL CAPACITY STRENGTHENING (P2KTD)

1. Provider of Village

Technical Capacity

Strengthening (P2KTD)

Training on planning and implementation of

PEL and entrepreneurship

5 days

2. Provider of Village

Technical Capacity

Strengthening (P2KTD)

Training on planning and implementation of

village infrastructure

5 days

3. Provider of Village

Technical Capacity

Strengthening (P2KTD)

Training on planning and implementation of

human resource development

5 days

TRAINING PIID-PEL

1. Team of Implementing

Partnership Activities

(TPKK)

Management of Financial Administration for

PIID-PEL

3 days

2. Team of Implementing

Partnership Activities

(TPKK)

Procurement for PIID-PEL

3 days

BALAI BESAR LATIHAN MASYARAKAT YOGYAKARTA (MOV)

1. Village Cadre for

Community Empowerment

(KPMD)

• Hydroponic agriculture

• Batik making

• Agriculture product processing

• Fish cultivation

• Decorative plants

77

No. Target Group Module / curricula Duration

2. BUMDes (Village-owned

Enterprise)

Management BUMDes

Entrepreneurship

Village tourism

78

ANNEX 3: SOME OF THE ONGOING CAPACITY BUILDING ACTIVITIES IN THE MINISTRY OF

HOME AFFAIRS FOR THE IMPLEMENTATION OF VILLAGE LAW

No. Target Group Module/Curricula Duration

1. Village apparatus Training PKAD

2. Village apparatus ToMT PKAD

3. Village apparatus ToT PKAD

4. Village Representative Body

(BPD)

Training

BALAI PEMERINTAHAN DESA (MoHA) YOGYAKARTA

1. Village apparatus and Village

Community Organization

(LKD)

Village arrangement; RPJMDes and RKPDes

Village administration

Preparation of APBDes

Management of Village Funds

2. LPMD Preparation of village planning documents

3. LP3 - PKK

4. Neighborhood Association

(RT)

5. Village Representative Body

(BPD)

Institutional and village partnerships

6. Management and Controller

of BUMDes

Control and development of BUMDes

79

ANNEX 4: E-WASTE MANAGEMENT

I. E-Waste Management in Indonesia

1. E-waste is a relatively a new issue in Indonesia. Its physical existence, except used batteries, is not being

so real yet, especially within the chain of waste management. Disposal of e- waste can be processed through

recycling and/or exporting to other countries (for further process). In some area, particularly in Java, e-waste

recovery and handling such as dismantling, segregation of parts, refurbishments of old products and recovery of

metals are done by informal sectors. It handles almost 90% of the total waste generated, particularly from

household, office, commercial areas, recovering materials and refurbishing products. These recyclers use

processes and practices such as open burning, acid baths and heating of circuit boards, resulting in emissions and

release of toxic elements (included brominated flame retardant) into environment. Therefore, the government need

to regulate this practice to prevent the negative impact to environment and human health.

2. Interest regarding hazardous wastes in Indonesia had emerged since 1990s, especially after the

intensified industrial activities. The hazardous wastes management in Indonesia refers to the principles and

guidelines for sustainable development as stipulated in Law No. 4/1982 on Basic Provisions for Managing the

Living Environment. The amendment of this Law has been issued by Law No. 23/1997 on Management of Living

Environment. This Law was amended in 2009 and issued as Law 32/2009 on Protection and Management of the

Environment. Article 59 of this Law refers to hazardous waste management on which mandating that further detail

to be described in the Government Regulation.

3. Below is the national regulations on E-waste in Indonesia:

a. Ratification of Basel Convention by Presidential Decree No. 61 Year 1993 Based on Basel Convention,

Annex VIII: A1080 and A1180;

b. E-waste from household and municipal waste, under the Law no 18/ 2008 on Solid Waste Management,

are categorized as specific municipal solid waste.

c. Government Regulation No. 101 /2014 concerning Hazardous Waste Management

• Based on Annex I, Table 1 List of Hazardous Waste from Not Specific Source: Given Code is B107d

for Electronic Waste including CRT, fluorescent lamp, PCB and wire rubber; and A111d for used

refrigerant from electronic equipment.

• Based on Annex I, Table 3 List of Hazardous Waste from General Specific Source, activity 28:

Electronic manufacturing or electronic equipment; and activity 29: Recondition and

Remanufacturing of Electronic Equipment.

More specific e-waste regulation will be developed under Minister of Environment and Forestry Decree. This

Ministerial Decree for Indonesia National Municipal E-Waste Management from households and municipal

sources, including office is currently being developed. Below is number of industries which has the activity on

collection and dismantling of e-waste in some areas:

Location Number of Industries Kind of collection

Batam Island 1 Rejected small parts of electronic component,

plastic, e-waste, used PCBs, Computer monitor,

and electronic parts (only dismantling, and the

waste produced uses as raw material in smelter

industries)

Central Java 2 Dry cell batteries collection and smelters

West Java 5 All e-waste material (only collection, the waste

goes for export, smelter industries in Batam, and

other smelter industries in Jakarta area)

Tangerang 1 All e waste (only collection) and export

Central Java 1 Recondition of LED monitor, for sale in local and

aboard

80

II. Municipal E-Waste Management

5. According to Law no 32/2009 on Protection and Management of the Environment, the hazardous waste

management as a series of activities related to reducing, storage, transporting, utilization, processing and/or

dumping of hazardous waste, where in each step need permit and reporting. Under the law, indeed, everyone

should be prohibited to dispose the hazardous waste to the environment. Further details on hazardous management

is regulated by Government Regulation no 101/2014 (PP 101/2014). This PP, the management of the hazardous

waste starting from the sources, within temporary collection Facility/dropping point and further e-waste

management by certified companies.

6. The sources of e-waste are from (i) municipal waste (including household, commercial activities and

offices), and (ii) industry. For the later, EPR (extended producer responsibility) is applied where the producer is

responsible to monitor distribution of product and handling of their hazardous waste as mandated in Law 18/2008

on solid waste management.

7. The e-waste management is also involved (i) the consumer and distributor who need to bring their e-

waste to the collection facility, (ii) collector, make cooperation with producer and local government to facilitate

the collection facility sites; and (iii) recondition industry that make recondition and responsible for managing their

waste from the production process.

8. Procedures or protocol for e-waste management in Indonesia, are shown in the following diagram. The

e-waste from the household, commercial activities and offices are transported to the dropping point/temporary

collection facilities. This dropping point can be “trade-in location”, “Waste Bank/Bank sampah” or other

location/site, determined by collector and/or local government. From this e-waste shelter, the e-waste will be

transported to Recycling Center for reused, or to be exported to other countries. Finally, the remaining items

which cannot be reused will be disposed in an authorized dumping area or through other options such as

incinerator.

III. Application of E-Waste Management

9. Below is a good example of e-waste management in the city of Jakarta introduced in May 2017 which

may inspire other cities/districts to do the same. This program has helped the Jakarta resident to reduce their email

through bringing the e-waste to dropping point located in the office of Jakarta Environmental Agency/Dinas

Lingkungan Hidup as well as in several office buildings in Jakarta. Dropping point is also available in Jl. Sudirman

only during ‘car free days.’ Another option that the resident can have pick-up services if the e-waste is amounting

more than 5 Kg.

81

Jakarta starts e-waste collection service in cooperation with PT Prasadha Pamunah Limbah Industri

After long ignoring the issue of the correct disposal of electronic goods, the Jakarta Sanitation Agency has

launched a new initiative for treating the dangerous garbage, involving deploying special trucks to collect it in

cooperation with a private waste-treatment company.

On May 2017, the Jakarta Provincial Government signed a Cooperation Agreement with PT Prasadha Pamunah

Limbah Industri (PT. PPLI) regarding the Program of Managing Electronic Waste Specific for Used Handphones.

The company had treated only industrial waste in the past but was open to working with the administration. It had

actually already looked into treating electronic waste, or e-waste, but had found it difficult to collect.

The Jakarta Provincial Government plans to help the company collect e-waste while it pays compensation to the

garbage facilities. E-waste such as computers, refrigerators, batteries and other broken electronic devices still had

value, so residents could receive compensation. The Environment Agency of Jakarta Provincial Government

would use two ways to collect the e-waste. The first one is residents can actively submit their e-waste through

their local garbage facilities; the second one is consumers could try to return broken devices to producers. Some

producers have 'trade in' programs when you can submit broken or used electronic devices to get some cash.

The agency also conducts the following activities to start in relation to the collection of e-waste in Jakarta, such

as: (i) Socialization and education to the program’s target of collecting Electronic waste; (ii) Placing e--‐waste

drop boxes: (iii) Picking up and transporting e-waste.

82

ANNEX 5: REPORT ON ENVIRONMENTAL AND SOCIAL SCREENING

(Example from a Road Project)

A. SUB-PROJECT ACTIVITY PLAN

1. Name of sub-project activity …………………………………………………………………….

2. Length of Road ………….. km

3. Width of Road

a. Existing width

b. Planned width

c. Existing surface

d. Planned surface

a. ……… m

b. ……… m

c. ……… m

d. ……… m

4. Location

a. City

b. District

c. Province

a. ……………………………………………

b. ……………………………………………

c. ……………………………………………

5. Road Status National/Province/District/City

6. City Status Metropolitan/Big/Medium/Small

7. Project Type Construction/Maintenance

8. Land Acquisition Size ………….. Ha

9. Average Traffic Flow

a. Existing

b. Planned

a. ………………. Vehicles/day

b. ………………. Vehicles/day

10. Project Status Pre-feasibility study/Feasibility study

B. RESULT OF ENVIRONMENTAL SCREENING ON PROTECTED AREA AND OTHER SENSITIVE

AREAS

1. Type of Land Use

a. Type / name of the protected area

b. Location of the road in protected areas

a. ………………..

b. Pass through/share boundary with/close to/far from.…..

2. Other Environmental Components that are

sensitive to changes (if any)

IPs / Vulnerable peoples/ Dense Settlement / Commercial Area /

Cultural Heritage Area / Steep terrain

3. Physiographic conditions of land:

a. Steep terrain (> 40%)

b. Unstable land

c. Other information

1. ………… km

2. ………… km

3. …………. (please mention)

4. Evaluation of Major Impacts Major/Minor

C. CONCLUSIONS (please select one)

1. Must have AMDAL45 Rationale: ……………………

2. Must have UKL/UPL Rationale: ……………………

3. Need LARAP (not applied) Rationale: ……………………

4. Need IPP Rationale……………………

5. Need IPs needs incorporated in the sub-project

design

Rationale ……………………

6. No AMDAL or UKL and UPL needed (only

requires SOP)

Rationale: ……………………

a. BUDGET ESTIMATE FOR STUDY OF

UKL/UPL, SPPL, SOP, LARAP (not

applied), IPP, etc.

Rp…………………………………….

45 Not eligible for financing

83

ANNEX 6: SUGGESTED SCREENING FORM (GENERIC)

Yes No ESMF

Guidance

A. Environment – Will sub-projects during construction and operational phase:

1. Risk causing the contamination of drinking water?

2. Cause poor water drainage and increase the risk of water related

diseases such as malaria?

3. Harvest or exploit a significant amount of natural resources such as

trees, mangroves, fuel wood, fish, or water?

4. Be located within or nearby environmentally sensitive areas (e.g.

intact natural forests, mangroves, coral reefs, wetlands) or threatened

species?

5. Create a risk of increased oil degradation or erosion?

6. Create a risk/potential of landslides?

7. Create a risk of increasing soil salinity?

8. Produce or increase the production of solid or liquid wastes (e.g.

water, medical, domestic or construction wastes)?

9. Affect the quantity or quality of surface waters (e.g. sea, rivers,

streams, wetlands) or groundwater (e.g. wells)?

10. Result in the production of solid or liquid waste, or result in an

increase in waste production, during construction or operation?

If the answer to any of the questions 1-10 is “Yes”, please include an Environmental and

Social Management Plan (ESMP) or SPPL with the sub-project application.

Annex 13

ESMP,

SPPL.

B. Indigenous Peoples:

11. Any there social-cultural groups present in or use the project area

who may be considered as “indigenous peoples”/”ethnic minorities”

/tribal groups” in the project area

12. Any of community member of the indigenous groups in the area

who will get the benefit or impacts from the project?

13. Do such groups self-identify as being part of a distinct social and

cultural group?

14. Do such groups have a close attachment to ancestral territories and

to the natural resources in the project area?

15. Do such groups use indigenous languages that different from the

national language or language used by the majority in project area?

16. Do such groups have customary cultural, economic, social, or

political institutions?

17. Has such groups been historically, socially and economically

marginalized, disempowered, excluded, and/or discriminated?

18. Are such groups represented in any formal decision-making bodies

in the national or local levels?

If the answer to any of the questions 19-26 is “Yes”, please consult the ESMF and, if needed,

prepare an Indigenous Peoples Plan (IPP) with the activity/sub-project application.

IPPF

84

ANNEX 7: FORMAT OF ENVIRONMENTAL MANAGEMENT PLAN AND ENVIRONMENTAL

MONITORING PLAN (UKL/UPL)

The following form is the Format for the Environmental Management Plan (UKL) and Environmental Monitoring

Plan (UPL). It describes the impact of the planned activities on the environment and how it will be managed. As

an integral part of the UKL/UPL, the Statement of Assurance for Implementation of UKL/UPL will be attached

using the template example shown in this annex. This format complies with the Regulation of the Minister of

Environment No. 16/2012 which can be referred to for further guidance.

Title of Chapter/Sub-

Chapter

Content/Remarks

Statement Letter from Project Management

a. The statement letter from project management will state their accountability

to ensure that the Environmental Management Plan (UKL) and

Environmental Monitoring Plan (UPL) will be done. This statement Letter

should be signed on a stamp duty acknowledged by the Head of Bapedalda,

(local environmental agency) and the Head of Local Government

(Governor/Bupati/Mayor).

b. Project management consists of those parties who prepare and implement the

Project Activities, those parties who are responsible for the operations and

maintenance of the Project Activities, and other parties responsible for

environmental management and monitoring.

I. DESCRIPTION OF PROJECT MANAGEMENT

1.1 Company/Village

Name

……………………………….

1.2 Name of Project

Management Entity

Name of project management entity and their job description at each stage of the

Project Activities, which should include:

a. Agency or office responsible for the preparation and implementation of

Project Activities.

b. Agency or office responsible for the operations and maintenance of the

Project Activities after the work is completed.

c. Agency or office responsible for environmental management and

monitoring.

1.3 Address, Number

Phone and Fax,

Website and Email

Clear address of the named agencies or offices related to the Project Activities in

accordance to the point 1.1 above.

II. DESCRIPTION OF PROJECT ACTIVITIES AND ITS IMPACT

2.1 Project Activities

Name

Name of Project Activities in a clear and complete manner.

2.2 Project Activities

Location

a. Location of the Project Activities in a clear and complete manner:

Kelurahan/Village, District/city, and Province where the Project Activities

and its components take place.

b. Location of the Project Activities should be drawn in a map using an adequate

scale (for example, 1:50.000, accompanied with latitude and longitude of the

location).

2.3 Scale of the Project

Activities

An estimation of the scale and type of Project Activities (using accepted units of

measurement). For example: the construction of a market of certain capacity may

need to be accompanied by supporting facilities in line with the Environmental

Management Plan that must mention the type of component as well as the scale.

2.4 Component of

Project Activities in

brief outline

A brief and clear explanation on any component of the Project Activities which

have potential environmental impacts. Work components should be divided based

on stages as follows:

85

Title of Chapter/Sub-

Chapter

Content/Remarks

a. Pre-construction, for example: mobilization of workforce and materials,

transportation, etc.

b. Construction, for example the use of ground water, laying out of utility pipes,

etc.

c. Operations and Maintenance: Post-construction, for example: clearing of

excavated waste material, etc.

Also, attach the flowchart/diagram to explain the flow of work to be done, if

applicable.

III POTENTIAL

ENVIRONMENTAL

IMPACT

Explain in a brief and clear manner about any Project Activities with potential

environmental impacts, type of impacts which might occur, magnitude of impacts,

and other matters needed to describe any potential environmental impacts on the

natural and social environment. Such descriptions can be presented in tabulation,

with each column representing each of the aspects. A description of the size or

magnitude of the impacts should be accompanied with measurement units based

on applicable laws and regulations or specific scientific analysis.

IV. ENVIRONMENTAL MANAGEMENT AND MONITORING PROGRAM

4.1 Environmental

Management Plan

b. The Environmental Management Plan(UKL) consists of the plan itself, as

well as the party in charge, frequency of interventions, implementation

schedule, and types of mechanisms (e.g.: procedures for management,

methods, etc.) in order to mitigate the environmental impacts identified

Section III above.

c. The plan can be presented in a table format, which at minimum contains the

following columns: type of impact, source, magnitude, threshold,

management plan, and frequency of interventions, party in charge, and other

remarks.

4.2 Environmental

Monitoring Plan

a. The Environmental Monitoring Plan (UPL) consists of the plan itself, party

in charge, frequency of interventions, implementation schedule, and types of

mechanisms (e.g.: procedures for monitoring, methods, etc.) in order to

monitor the environmental management plan described in section 4.1 above.

b. The plan can be presented in a table format, which at minimum contains the

following columns: type of impact, source, magnitude, threshold,

management plan, and frequency of interventions, party in charge, and other

remarks. In this monitoring plan, the thresholds should comply with the

prevailing laws and regulations which are applicable according to the

environmental impacts as already identified in Section III above.

V. SIGNATURE AND

OFFICE SEAL

After the UKL/UPL document is prepared and complete, the TPK should sign and

put an official seal on the document.

VI. REFERENCE Insert various references used in the preparation of UKL/UPL.

VII. ATTACHMENTS Attach any relevant documents or information to the UKL/UPL, e.g. tables

displaying the monitoring results, and others.

86

ANNEX 8: FORMAT OF STATEMENT OF ASSURANCE FOR UKL/UPL IMPLEMENTATION

STATEMENT OF ASSURANCE FOR UKL/UPL IMPLEMENTATION

NO: …………………….

In an effort to prevent, minimize and/or address the potential environmental impacts from the Construction Work

of.............................., in the District/Province of.............. as well as in accordance to the duty and authority of the

Village ................, of the District/Province of shall carry out an Environmental Management Plan (UKL) and

Environmental Monitoring Plan (UPL) and include the recommendations from UKL/UPL into the Detailed

Design.

For the next stage, which is the physical work, implementation of the recommendations from UKL/UPL shall be

done by the party in charge for the physical work, which is “TPK Village..................... of the

District/Province..................”.

This statement is duly made, as confirmation to support the Environmental Management Plan (UKL) and

Environmental Monitoring Plan (UPL) on the Construction Work for the Construction of ......................., in the

District/Province of..............,

Location,.........................., Date…..………..

VILLAGE…………….………………............

DISTRICT/PROVINCE OF .......................

Head of Village

NAME .................................

NIP.......................................

87

ANNEX 9: SOP FOR ENVIRONMENTAL MANAGEMENT

1. Roads and Bridges:

a. General Guidelines for Environmental Management (1)- No 008/BM/2009

b. Guidelines for Planning of Environmental Management (2)-No 009/BM/2009, which includes,

among others:

i. General Guidelines for Environmental Management of Sensitive Areas. See Annex 2 of the

Guideline No. 009/BM/2009.

ii. Guidelines for Environmental Management in Forested Areas.

iii. Procedures for obtaining a Use Permit (Leasehold) for Forested Areas.

iv. Implementation Manual for Construction in Forested Areas.

v. Manual for Mitigating Development Impacts on Flora and Fauna in Forested Areas (14

pages), including:

• Methods of Land Clearing;

• Environmental Impact Management Plans for Roads Traversing National Parks.

vi. Guidelines on Environmental Management in Protected Zones Outside of Forested Areas.

See Annex 3 of the Guideline No. 009/BM/2009.

vii. Manual for Mitigating Construction Impacts on Flora and Fauna in Forested Areas.

viii. Manual for Mitigating Development Impacts on Water Resources.

ix. General Environmental Management Guidelines for Protection of Heritage Areas.

x. Manual for Mitigating Air-quality and Noise Pollution from Traffic.

xi. Environmental Screening Procedures for Road Projects. See Annex 4 of the Guideline No.

009/BM/2009.

c. Guidelines for Implementation of Environmental Management Plans (3) - No 010/BM/2009, which

includes, among others:

i. Sample Clauses for Specific Work, related to environmental impact mitigation measures.

See Annex 1 of the Guideline No. 010/BM/2009.

ii. Mitigation Guidelines for Construction Standards (e.g. traffic, construction base-camps,

stockpiles, collecting the material in the quarry, waste management, erosion and

sedimentation, interference of vegetation, handling utilities). See Annex 2 of the Guideline

No. 010/BM/2009.

d. Guidelines for Monitoring of Environmental Management (4) –No 011 /BM/2009.

2. Water Supply:

a. The Regulation of Ministry of Public Works and Housing (MPWH), No. 18/PRT/M/2007, on Water

Supply System Management, which includes among others:

• Guidelines for Master Plan Development, Feasibility Study Preparation, Construction Phase.

b. Guidelines for Simplified Water Supply System Management (SPAM sederhana):

• Guidelines for the construction of water intakes, broncaptering, underground water wells,

simplified water treatment plants, public hydrants, piping installations, and operations and

maintenance.

3. Irrigation:

a. Guidelines for rehabilitation/improvement of irrigation systems, to prevent adverse downstream

effects. Please refer to Regulation of MPWH No 15/PRT/M/2010, Section III.3.2.2 and III.3.3.2.

b. Please follow the MPWH Guidelines for environmental management during construction

(10/BM/2009), as per stipulated in the Regulation of MPWH No 15/PRT/M/2010. Refer to

Appendix 2 - Article III.1.

c. Guidelines for the On-site Agricultural Education for Integrated Pest Management (IPM).

i. Book 1 for Farmers

ii. Book 2 for Extension Workers

iii. Book 3 for Follow Up Actions

4. Sanitation. Can refer to Implementation Guideline of DAK Community Based Sanitation (SLBM)

issued in 2014 by DG of Human Settlements, MPWH.

88

ANNEX 10: FORMAT OF THE “STATEMENT OF COMMITMENT TO IMPLEMENT

ENVIRONMENTAL MANAGEMENT AND MONITORING” (SPPL)

(For activity plan not requiring any UKL/UPL – based on the Regulation of the Minister of Environment No.

16/2012)

We, the undersigned below:

Name :

Job position :

Address :

Ph Number :

As party in charge of the environmental management of:

Company Name/Business :

Address company/Business :

Ph Number of the Company :

Type of Business :

Production Capacity :

Permit already obtained :

Purpose :

Amount of Capital :

Hereinafter, we confirm that we are capable and committed to:

(1) Maintain the public order and always maintain good relations with the neighbouring community.

(2) Maintain the hygiene, cleanliness, and order of the project site.

(3) Be responsible for any environmental damage and/or pollution caused by the business and/or the project

activity.

(4) Be willing to be monitored for environmental impacts of our business and/or project activity by the

authorized officer.

(5) Take the responsibility according to prevailing laws and regulation, if we fail to comply with

commitments stated above.

Remarks:

Environmental impacts already taking place:

1.

2.

3. etc

Measures that will be taken to manage environmental impacts:

1.

2.

3. etc.

This SPPL shall be effective from the date of its issuance, up to the completion of our business and/or project

activity. If the project undergoes any change of location, design, process, type of raw materials and/or

supporting materials, this SPPL must be revised.

Date, Month, Year

Village Head,

(Name/NIP)

Registry number from the local environment agency

Date

Receiver

Stamp duty of Rp, 6,000 Signature Company seal

89

ANNEX 11: TYPICAL SUBPROJECT IMPACTS AND MITIGATION MEASURES

The typical subprojects that will be supported under Component 3 with the potential negative impacts and

mitigation measures are summarized in the following table:

Potential Negative Impacts Mitigation Measures

Roads, Bridge and Drainage subprojects

Erosion from fresh road cuts and fills

and temporary sedimentation of

natural drainage ways

- Limit earth moving to dry periods

- Protection of most susceptible soil surfaces with mulch

- Protection of drainage channels with berms, or fabric

barriers/geo-textile

- Installation of sedimentation basins, seeding or planting of

erodible surfaces as soon as possible

- Selection an alignment that reduces environmental disturbances

- Undertaking maintenance and repairs in a timely fashion

Creation of stagnant water bodies in

borrow pits, quarries, etc. suited to

mosquito breeding and other disease

vectors

Employ measures to avoid creating habitats (e.g. improved

landscaping, re-vegetation, filing or drainage)

Roads/bridges located in critical lands

that are sensitive to erosion and

landslides

- Changing the alignment to reduce steep grades when possible

- Building civil works to stabilize side slopes – terracing or

retaining wall installation

- Using vegetative treatments to stabilize side slopes or prevent

erosion

- Using special treatments to overcome ground water problems,

such as drains

- Regular monitoring and inventory of risks for erosion

Blocked drains (due to design and

maintenance) stop the flow of water

and impact public health

- O&M work must clean the block drains periodically

- Stone masonry or concrete ditch are preferred as water is quickly

transported away (earth ditches drain but they need much more

space and are less stable, earth ditches also need a lot more

maintenance)

- Use of natural slope as it holds up well against erosion

Public Toilets, Sanitation, and Water Supply – Health Risks on the following activities:

Water level of the dug well almost the

same as the soak away, well too close

to the toilets and septic tank

- Check the direction of groundwater flow; the well should be

placed upstream

- Build the soak away as far as possible away from the dug well

(minimum 10 m)

- - Build the proper drainage system to keep the waste water away

of the dug well

A well in the toilet: this is not

acceptable due to high risk of

contamination

- Build a basin in each toilet room and fill them from the well by

pipe channel or container

- - Keep the toilets clean and separate from the well

The sewer pipe laid on the ground

surface may become brittle from the

sun’s UV rays and could also be

damaged by people stepping on it or

other impact

- Burry the sewer pipe all the way to the septic tank

- Install a ventilation pipe and a manhole access in the septic tank

Incomplete septic tank structures Minimum equipment for a septic tank consists of:

1. Access manhole with a lockable cover

2. Inlet pipe

3. Dividing wall of baffle

4. Overflow pipe

5. Ventilation pipe

(To comply with SNI - 2398 – 2002 on septic tank system)

Incomplete public MCK structures

(Mandi/bath, Cuci/wash,

Kakus/toilets)

All essential elements of an MCK need to be included:

1. Toilet (s)

2. Toilet ventilation

90

Potential Negative Impacts Mitigation Measures

3. Water basin with faucet and bottom outlet

4. Slab with raised edge for public washing area

5. Faucets to fill buckets

6. Notch to ditch for surplus water and flow directly to the existing

ditch/drains

Sewage which contains human waste

carries pathogens and must be treated

before discharge into the ground or an

open water course

- A sewer carrying human waste should discharge to a treatment

plant or a septic tank

- A septic tank or other type of settling tank will also partially treat

sewage

Leachate and odor from temporary

domestic solid waste management

must be treated so it will not pollute

the ground or surface water course

- Conduct solid waste segregation to separate the organic and

inorganic waste

- Contain the leachate in cemented bundling floor and channeled to

settling tank before discharged

- Cover organic waste for faster composting and prevent odor

91

ANNEX 12: ENVIRONMENTAL CODES OF PRACTICES46

A. Other Special

Requirements

General responsibility

1. Comply with all relevant regulatory requirements in Indonesia (PerMen PU

No. 45/2007; No. 29/2006 concerning building technical guidelines; and No.

05/2014 on OHS management system).

2. Employ and train suitable qualified staff to be responsible for OHS.

3. During construction, if historical or ancient objects are found, they must be

reported to the directors / leaders.

4. Always keep the construction area free of things that endanger workers and the

surrounding environment.

5. Comply with all rules of safety and security in building design. Example:

ventilation, evacuation routes, evacuation marks, installation of waste

management/ WWTP, pathways for people with disabilities, etc.

Prohibition

1. Cut down trees outside the agreed construction area.

2. Take historical objects found in the construction area.

3. Throw away garbage or construction waste carelessly.

4. Dispose of pollutants such as oil, paint, diesel fuel, in the environment (soil,

waterways).

5. Burn waste and/ or remaining plants from cleared land.

6. Use material containing asbestos.

7. Use wood with unclear origin for construction.

8. Timber that may be used is only timber that is legal/ completed by SKAU.

Dust and pollution

1. The contractor uses water at certain intervals to wet a dusty area, especially

when it is dry and windy.

2. The generator set used does not produce black/ thick smoke.

3. Use proper vehicle (license/ KIR still valid).

Noise

1. Strive to reduce and control noise.

2. Construction activities are only scheduled in the morning (8am to 6pm).

3. Work carried out after working hours must be notified in advance to the

community around the project at least one week before.

Waste Management

1. Provision of temporary trash shelter and daily cleaning at the project site.

2. Accumulated rubbish must be disposed of at an official landfill (evidence or

landfill location must be reported).

3. Oil waste and other hazardous waste (including contaminated soil and oil

spills) must be kept closed and separated from other wastes. This type of waste

must be transported by licensed transporters to a licensed disposal facility.

4. After the work is completed, all debris and the rest of the construction materials

must be removed from the project site/ cleaned.

5. Worker's waste: leftovers, toilets must be managed properly.

46 For various types of village infrastructure, see practical Manual of “The DOs and DON’Ts: Environmental

Management: General Considerations-Site Screening-Construction Site Management, Roads, Water Supply, Sanitation,

Solid Waste Management, Markets, Rivers” prepared by the PNPM-Rural Project. This Guidance Book, English version

can be accessed through http://documents.worldbank.org/curated/en/925701495170561883/The-dos-and-the-donts-

environmental-management-general-considerations-site-screening-construction-site-management-roads-water-supply-

sanitation-solid-waste-management-markets-and-rivers. This Guidance Book, Bahasa Indonesia version can be accessed

through http://documents.worldbank.org/curated/en/188631468042887318/Baik-and-buruk-pengelolaan-lingkungan.

92

Occupational Health and Safety (OHS)

1. The contractor complies with all applicable regulations in Indonesia and the

applicable SOPs for workers.

2. All workers are equipped with adequate personal protective equipment, namely

protective helmets (hard hat), work clothes/ vests, boots, gloves, eye protection,

and others according to the type of work performed.

3. Requirements for workers and visitors on site to use safety/ protective

equipment that meets the standards.

4. The contractor must maintain equipment that can endanger work safety.

5. The contractor must routinely conduct formal and informal OHS inspection

activities.

6. The contractor provides OHS equipment such as stacking stairs, safety fences,

fire extinguishers, OHS equipment, OHS signs

7. A safety fence is built around the construction site.

8. If a work accident / disaster occurs, it must be reported to the directors / leaders

and documentation.

B. Environmental

Management and

Monitoring

Implementation of environmental management and monitoring:

1. The environmental and social impact management / mitigation plan that has

been prepared and used as the basis for the implementation of construction can

be operational and effective in accordance with the Environmental and Social

Management and Monitoring Plan.

2. Meet environmental and social requirements.

3. Complete all check list and reports and evaluate the Environmental Code of

Practices / ECOP determined by the Project Proponent.

4. Implementation of management of environmental and social impacts of

construction work in accordance with the Environmental and Social

Management and Monitoring Plan.

5. Monthly report on construction work and implementation of management of

environmental and social impacts carried out by the construction implementer.

6. Implementation of management of environmental and social impacts of

construction works in accordance with the matrix taken from UKL-UPL or

SPPL documents or other Environmental Management Documents.

93

ANNEX 13: FORM CHECK LIST ENVIRONMENTAL CODE OF PRACTICE (ECOP47)

Working Unit : ...........................................................................................

Title of Activity : ...........................................................................................

Location of Activity : ............................................................................................

A. ENVIRONMENTAL RESPONSIBILITIES FOR CONTRACTORS

1. GENERAL

No. Criteria Yes No Not necessary Recommendations

given

a. Has it complied with all relevant regulatory

requirements in Indonesia (PerMen PU No.

45/2007; No. 29/2006 concerning building

technical guidelines; and No. 05/2014 on OHS

management system)

b. Is there an Information Board for Construction

Activities that contains information on Project

Name, Implementing Contractor Company Name,

Job Type, Job Execution Period, Supervision

Consultant Company Name and Contact Number

contacted to submit a complaint

c. Have you implemented the Environmental and

Social Management Plan (ESMP) for the duration

of the construction period?

d. Monitor the effectiveness of ESMP

implementation and store monitoring data

e. Make a monthly report on data from the results of

monitoring on the implementation of

environmental management to Project Proponents

f. Employ and train suitable qualified staff to be

responsible for OSH

g. During construction, historical objects must be

reported to the head of the Project Proponent

h. Comply with all rules of safety and security

regulations in building design. Example: there is

ventilation, evacuation routes, evacuation marks,

installation of waste management/ WWTP,

pathways for people with disabilities, etc.

i. If there are significant environmental and social

impacts and no mitigation action conducted, the

Contractor stops construction activities after

receiving instructions from the Project Proponent,

and if needed, proposes and carries out repairs

47 For various types of village infrastructure, see practical Manual of “The DOs and DON’Ts: Environmental

Management: General Considerations-Site Screening-Construction Site Management, Roads, Water Supply, Sanitation,

Solid Waste Management, Markets, Rivers” prepared by the PNPM-Rural Project. This Guidance Book, English version

can be accessed through http://documents.worldbank.org/curated/en/925701495170561883/The-dos-and-the-donts-

environmental-management-general-considerations-site-screening-construction-site-management-roads-water-supply-

sanitation-solid-waste-management-markets-and-rivers. This Guidance Book, Bahasa Indonesia version can be accessed

through http://documents.worldbank.org/curated/en/188631468042887318/Baik-and-buruk-pengelolaan-lingkungan.

94

and implements alternative construction methods

to minimize their environmental and social

impacts.

B. ENVIRONMENTAL MONITORING

Ensuring that work activities performed in a way that does not damage the environment and maintain

the environment.

1. PROHIBITION

No. Criteria Yes No Not

necessary

Recommendations

given

a. Cut down trees outside the agreed

construction area.

b. Take historical objects found in the

construction area.

c. Throw away garbage or construction waste

carelessly.

d. Dispose of pollutants such as oil, paint, diesel

fuel, in the environment (soil, waterways).

e. Burn waste and/ or remaining plants from

cleared land.

2. POLUTION AND DUSK

No. Criteria Yes No Not

necessary

actions

Recommendations

given

a. Use of water at certain intervals to wet a

dusty area, especially when it is dry and

windy

b Use of generator that does not produce

thick/ black smoke

c. Storage of diesel/ diesel for generator sets

uses tanks/ drums with secondary

containment to prevent the impact of spills/

spills on the ground

d. Use proper vehicle (license/ KIR still

vaild)

3. NOISE

No. Criteria Yes No Not

necessary

Recommendations

given

a. Construction activities are only scheduled

in the morning (8am to 6pm).

95

b. Work carried out after working hours must

be notified in advance to the community

around the project at least one week

before.

4. WASTE MANAGEMENT

No. Criteria Yes No Not

necessary

Recommendations

given

a. Provision of temporary trash shelter and

daily cleaning at the project site.

b Accumulated rubbish must be disposed of at

an official landfill (evidence or landfill

location must be reported).

d. Oil waste and other hazardous waste

(including contaminated soil and oil spills)

must be kept closed and separated from

other wastes. This type of waste must be

transported by licensed transporters to a

licensed disposal facility.

d. After the work is completed, all debris and

the rest of the construction materials must

be removed from the project site/ cleaned.

e Worker's waste: leftovers, toilets must be

managed properly.

5. OCCUPATIONAL HEALTH AND SAFETY (OHS)

No. Criteria Yes No Not

necessary

Recommendations

given

a. The contractor complies with all applicable

regulations in Indonesia and the SOP

according to the ESMP for workers

b. All staff are equipped with appropriate

personal protection equipment, namely

protective helmets (hard hats) and security

clothing (high visibility clothing)

c A safety fence has been built around the

construction site

6. AVAILABILITY AND USE OF SAFETY EQUIPMENT

No. Criteria Yes No Not necessary Recommendations

given

Legal basis:

Minister of Manpower instruction No. 2 / M /

BW / BK / 1984, concerning ratification of

personal protective equipment

96

a. Work safety equipment: personal protective

equipment: work clothes/ vests, boots, helmets,

gloves, eye protection etc., available

b. The requirement for workers and visitors on site

to use safety/ protective equipment that meets

the standards

c. Is maintenance for equipment that can endanger

work safety carried out?

d. Does the company carry out inspection

activities on OSH implementation both formally

and informally regularly?

e. Are there available environmental equipment

such as stacking stairs, safety fences, fire

extinguishers, OSH equipment, OHS signs?

f. Does the company conduct activities/ meetings/

briefings related to the implementation of OSH?

g Does the Company have a system for

measuring, monitoring and evaluating the

performance of the Safety Management System

Occupational Health and the results

analyzed to determine success or to identify

corrective actions?

h. What approach does the company take to

increase awareness about OHS, for example:

with OHS posters (safety), slogan motivation to

work safely, reward and punishment?

i If a work accident / disaster occurs, it must be

reported to the board of directors and

documentation is made?

Note: Each monitoring item must be equipped with the appropriate photo / documentation

7. SANCTIONS:

If the contractor is proven to have committed a violation of this SOP, a written warning will be given up to 3

times and if the violation is repeated then the project activity can be stopped and the contract can be terminated.

Reported by Supervision Consultant

Name : Signature :

Cellphone :

E-mail :

Acknowledged by Director of Construction Works

Name : Signature :

Cellphone :

E-mail :

97

ANNEX 14: SOCIAL ASSESSMENT OF INDIGENOUS PEOPLES

1. Objectives. The purpose of Social Assessment (SA) is to evaluate the sub-project’s potential

positive and adverse effects on the Indigenous Peoples in the case that Indigenous Peoples are present in, or

have collective attachment to the project area (based on the screening in accordance with the four criteria as

specified in the World Bank OP 4.10 and criteria on Masyarakat Adat and/or local values), and to examine

sub-project alternatives where adverse effects may be significant. The breadth, depth, and type of analysis in

the SA are proportional to the nature and scale of the proposed sub-project’s potential effects on the

Indigenous Peoples, whether such effects are positive or adverse. In carrying out an SA, the village

government will have to be assisted by the PD, a consultant team or individuals who are social scientist whose

qualifications, experience, and terms of reference are acceptable to the PIU or Pokja of the district. Experts

from local universities or local NGOs who have worked and have experienced in working with the IPs are

encouraged to assist the village government.

2. Outline of the SA. The SA will at least cover the following:

a. Description of sub-project Activity

b. Information about the Subproject Activity’s site and condition of the cultural community

c. Social Economic Characteristics of the affected Indigenous Peoples’ community

i. General Characteristics of IPs

ii. Specific characteristics of IPs

• Cultural Social Institutions

• Economic Condition and Source of livelihood for villagers

• Cultural practices

• Etc.

iii. Stakeholders assessments

d. Consultation process during the Social Assessment reflecting a free, prior and informed

consultation that leads to broad support from the affected IPs community on the proposed sub-

project activity.

e. Findings and potential sub-project activity’s impacts (positive and adverse).

i. Any potential negative (give examples)

• Economic domination by outsiders

• Transfer of ulayat rights

• …

ii. Proposed Mitigation (give example)

• Mitigation related to domination by outsiders

• …

iii. Potential positive impacts and efforts to maximize these impacts

f. Proposed Action Plans in form of a Table containing (to be included in the Draft IPP):

i. Plan to maximize the positive impacts

ii. Negative issues as findings from the study which needs mitigation

iii. The mitigation measures

iv. Subproject Activities within the mitigation framework

v. Location where the impact and mitigation are going to be done

vi. Consultation framework for preparing and implementing IPP

vii. Institution in charge for preparing and implementing IPP

viii. Schedule for implementation

ix. Budget

x. Source of budget

xi. Remarks (other matters that need to be put in the report)

98

ANNEX 15: FORMAT OF INDIGENOUS PEOPLES PLAN (IPP)

The following template presents the outline of an IPP. The template can be further developed based on field

conditions and as per characteristics of the Project Activity.

Title of Chapter/Sub-

Chapter

Content/Remarks

1. DESCRIPTION OF THE PROJECT

Summary Description of sub-project activity (concerning area boundary, location, type of

occupation, area size, area of influence, etc.)

2. SUMMARY OF SOCIAL ASSESMENT

2.1. Baseline Data on IPs

• Baseline information on the demographic, social, cultural, and political characteristic of the IPs

community, the land and territories traditionally owned or customarily used or occupied and the

natural resources that they depend

• Identification of key project stakeholders and elaboration of culturally appropriate process for

consulting with the IPs at each stage of project cycle

2.2. Summary of results of the free, prior, and informed consultations with the affected

Indigenous Peoples’ communities that was carried out during Project Activity’s preparation

and led to broad community support for the Project Activity

• Identification of potential adverse and positive effects of sub-project activity of the affected IPs

within the sub-project activity’s area of influence

• Development of measures necessary to avoid adverse effects or identification of measures to

minimize, mitigate, or compensate for such effects and ensure that IPs receive culturally

appropriate benefits from the sub-project activity

• Mechanism to prepare and implement the public consultation with the Indigenous People

(consultation concerning the draft sub-project activity plan, etc. as relevant), to include:

determination of location and schedule of consultation, information dissemination /invitation,

etc.

• Public consultation process

• Result/resolution and mutual agreement obtained during consultation meeting.

• Number and representative of organization/institution presented by participants in the said

consultation meeting.

2.3. A framework for ensuring the free, prior, and informed consultations with the affected

IPs communities during project implementation

3. ACTION PLAN (INPUTS FROM THE RESULTS OF THE SOCIAL ASSESSMENT)

3.1. Activities for IPs to receive social and economic benefits

3.2. Activities to avoid, minimize, mitigate, or compensate for adverse effects

3.3. Measures to Enhance the Capacity of the Project Management

3.4. Consultation with the affected IPs on the Draft IPP

4. COST ESTIMATE AND FINANCING PLAN

In form of table containing information about: type of activity, party in charge, timeline/milestones,

cost, funding source, and remarks.

5. INSTITUTIONAL ARRANGEMENT TO IMPLEMENT IPP

• Agencies responsible for managing the implementation of the Indigenous Peoples Plan

• Agencies (such as TPK) responsible for reporting and monitoring on the implementation of the

Indigenous Peoples Plan

• Arrangements for monitoring of the implementation of the Indigenous Peoples Plan by the

affected IPs

6. GRIEVANCE REDRESS MECHANISM ACCESSIBLE TO THE AFFECTED IPs

99

Title of Chapter/Sub-

Chapter

Content/Remarks

• Mechanism for managing grievances as suggested by the results of the Social Assessment

results

7. PROJECT MONITORING, EVALUATION, AND REPORTING OF IPP

IMPLEMENTATION

Includes arrangement for free, prior, and informed consultation with the affected IPs

• Explaining the Work Plan for monitoring implementation of IPs and Reporting Mechanism.

• Monitoring on progress implementation of IPP

• Monitoring on process implementation of IPP

• Reporting on implementation of (report to whom, which format to use, and deadline for

submission of the report).

ATTACHMENT

Attach original or copy of documents as relevant to IPP, for example:

• Information about the sub-project activity (Map)

• Table containing Baseline Data of IPs

• Minutes of Dissemination and Consultation Meetings

• Minutes of Agreement on Compensation Plan (if any) based on the consultations

• Other relevant documentation

100

ANNEX 16: MINUTES OF CONSULTATION MEETING WITH IPs

Name of sub-project activity :

Date/ Month/ year :

Time :

Place :

Socialization/Dissemination of information about Project Activity

• Project Management should carry out information dissemination to the IPs concerning the objective and benefit of

the sub-project activity in detail and including any potential positive and negative impacts, physical and non-physical

due to the sub-project activity. The territorial boundary for such scope of impact in particular, should be defined.

• Project Management should inform the IPs of the IPP.

• Project Management should provide maps, designs and other related materials for sub-project activity.

• It is recommended that socialization and consultation are done in a manner that is culturally acceptable by the IPs

community and local language is used, as appropriate.

Consultation

• The village government of TPK should encourage IPs to actively participate in the discussions during the

consultation meetings.

• The overall question-and-answer and recommendation/conclusions should be recorded in this Minutes of Meeting.

Summary of the meeting:

• …….

• ……

Representatives agreed on the Minutes

No

Name of the

Community

members

Job position Signature

1 Head of Tribe

2 Head of Village

3 Head of Hamlet

4

5

Attachment

• Full attendance list

• Photo documentation

101

ANNEX 17: NOTES ON FREE, PRIOR AND INFORMED CONSULTATIONS (FPIC)

2. Indigenous Peoples or Masyarakat Adat (Customary Communities) may be vulnerable to the loss of,

alienation/resettlement from or exploitation to natural and cultural resources. IPs communities are often among the

poorest of the poor in the community and closely tied to their settlements, lands and related natural resources upon which

the sustenance of their livelihoods depends. Frequently, these lands and settlements are traditionally owned or under

customary use and often not legally recognized by national laws. In recognition of this vulnerability, interventions

introduced through this project with the objectives to improve land administration and address informal settlements may

potentially alienate and/or displace IPs if the mechanisms for Free, Prior and Informed Consultations (FPICs) to obtain

broad support are not built into project design and implementation.

3. Objective. The extent, frequency and degree of engagement required by the consultation process should

commensurate with the identified project risks and adverse impacts and with the concerns raised by affected IPs. FPICs

are built on mutually accepted process between affected communities and project actors. FPICs serve at least two

purposes:

a. Provide a platform to undertake a process of consultations in good faith and in a manner that provides

affected IPs with opportunities to express their concerns and views on the sharing of development benefits,

risks, impacts, and mitigation measures and explore ways to leverage culturally and socially acceptable

benefits.

b. Provide a two-way mechanism for village apparatus especially the TPK to engage with IPs and their

organizations, including Adat councils, community groups to consider and respond to the views and concerns

expressed by affected IPs prior to project execution.

4. Procedures. FPICs should be orientated towards obtaining broad community support and by which, broad

community support consists of a collection of expressions by affected community members and/or their recognized

representatives in support of the proposed project/sub-project activities. Although FPICs do not necessarily require

unanimity and in some instances, decisions may be achieved even individuals or groups within the community disagree,

FPICs lay out organized and iterative processes through which decisions and measures adopted by the project incorporate

the views of the affected IPs on matters that affect them directly.

5. The Community Participation Framework needs to be built on gender-sensitive and inter-generationally

inclusive approaches. Effective FPICs are built upon two-way processes that should:

a. Involve members of affected communities and their recognized representative bodies and organizations in

good faith.

b. Capture the views and concerns of men, women and vulnerable community segments including the elderly,

youth, displaced persons, children, people with special needs, etc. about impacts, mitigation mechanisms,

and benefits where appropriate as reflected in sub-project design. If necessary, separate forums or

engagements need to be conducted based on their preferences.

c. Begin early in the process of identification of environmental and social risks and impacts and continue on

an ongoing basis as risks and impacts arise.

d. Be based on the prior disclosure and dissemination/socialization of relevant, transparent, objective,

meaningful, and easily accessible information which is in a culturally appropriate language(s) and format

and is understandable to affected IPs. In designing consultation methods and use of media, a special

attention needs to be paid to include the concerns of Indigenous women, youth, and children and their

access to development opportunities and benefits.

e. Focus on inclusive engagement on those directly affected than those not directly affected;

f. Ensure that the consultation processes are free of external manipulation, interference, coercion and/or

intimidation. The ways the consultations are designed should create enabling environments for meaningful

participation, where applicable. In addition to the language(s) and media used, the timing, venues,

participation composition need to be carefully thought through to ensure everyone could express their

views without repercussions.

g. Be documented

6. In deciding whether to proceed with the sub-project, the PTPD, PD and PLD ascertains on the basis of social

assessment and FPICs whether affected IPs provide their broad support to the project. Where there is such a support, the

TPK should prepare:

a. Documented evidence of FPICs as well as measures taken to avoid and minimize risks to and adverse

impacts of the affected IPs. This includes list of participants, meeting minutes and other documentation

(e.g. photos, video, etc.);

102

b. Additional measures, including project design modification, alternative locations, and where applicable

compensations to address adverse effects on affected IPs and to provide them with culturally and socially

appropriate benefits;

c. Action plan and recommendations for FPICs during project implementation, monitoring, and evaluation,

and

d. Any formal agreements reached with affected IPs and/or their representative organizations.

7. The PIUs and the World Bank will review the process and the outcome of the consultation carried out by the

village apparatus and TPK with supervision from the facilitators (PD and PLD) to confirm that the affected IPs have

provided their broad support to the project. The PIU will not recommend the village or TPK to proceed further with

project processing if it is unable to ascertain that such support exists.

8. Requirements. To ensure that FPICs can be ascertained, the following requirements are needed to determine

whether:

a. The level of engagement in a way that enables informed participation of affected IPs is acceptable;

b. The level of support and dissent among affected IPs for the project is taken into account into decision

making and development of mitigation measures.

Consideration Requirements

Project’s strategy and principles on

engagement

- Community Participation Framework to mainstream FPIC;

- Project Operational Manuals on FPICs;

- Budget and personnel provisions;

- Consultation schedules and other supporting documentation.

Stakeholder identification and

analysis - Stakeholder analysis as part of the Social Assessment;

Community Engagement - Consultation plan, public consultation and disclosure plan, and

stakeholder engagement plan;

- Schedule and record of community engagement including discussions

and consultations with community members and their representatives.

Information disclosure - Disclosure plan, including schedules

- Materials prepared for disclosure and consultations;

- Record/minutes of discussions/consultations with community members

and their representatives

Free, Prior, and Informed

Consultations

- Record/minutes of discussions/consultations with community members

and their representatives;

- Documentation of measures taken to avoid/minimize risks to and

adverse impacts on affected IPs based on community feedback;

- Draft of Action Plan;

Consultations with vulnerable

groups

- Engagement and public consultation plan

- Record/minutes of discussions/consultations with members and

representatives of vulnerable groups

- Documentation of measures taken to avoid/minimize risks to and

adverse impacts on vulnerable groups based on community feedback

- Draft of Action Plan

Grievance redress mechanism - Organizational structure and responsibilities and procedures to manage

grievances;

- Record of grievances received, including expressions of support or

dissent;

- Record/minutes of discussions with community members or

representatives with regards to grievance redress.

Feedback to affected IPs (to

demonstrate that concerns and

recommendations have been

accommodated in the project and

rationale why recommendations

have not been accommodated)

- Documentation of risk mitigation measures

- Record/minutes of discussions with community members and their

representatives;

- On-going reporting on implementation of Action plan;

- Revisions in project/sub-project activities and Action Plan;

- Surveys/interview records of affected IPs.

Formal expressions of support or

dissent

- Record/minutes of meetings/public consultations with community

members and their representatives;

103

Consideration Requirements

- Formal letters/written petitions of support/objection submitted by the

community and/or their representatives;

Informal expressions of support or

objection - Photographs, media reports, personal letters or third-party accounts

(NGOs, CBOs, etc.)

Evidence of good faith

consultations

- Face-to-face interviews with community members/representatives in the

consultations;

- Agreements reached with affected IPs (e.g. MoU, Letters of Intent, Joint

Statements, etc.)

- Action plan, e.g. benefit sharing, development plan, etc.

104

ANNEX 18: LIST OF DISTRICTS WITH POTENTIAL IPS PRESENCE

No. Provinces Districts with Potential Indigenous Peoples Presence

1 Central

Kalimantan

Barito Selatan, Barito Timur, Barito Utara, Gunung Mas, Kapuas, Katingan, Kotawaringin

Barat, Kotawaringin Timur, Lamandau, Murung Raya, Sukamara

2 North Maluku Halmahera Barat, Halmahera Selatan, Halmahera Timur, Halmahera Utara, Kepulauan Sula

3 East Java Banyuwangi, Bojonegoro, Bondowoso, Magetan, Ponorogo, Sumenep. Trenggalek,

Tulungagung

4 Jambi Bungo, Merangin, Muaro Jambi, Sarolangun, Tanjung Jabung Timur, Tebo

5 West Sulawesi Majene, Mamasa, Mamuju Utara, Mamuju

6 Lampung No identified IPs

7 Bengkulu Bengkulu Selatan, Bengkulu Utara, Kaur, Lebong, Seluma

8 West Java Ciamis, Cianjur, Garut, Majalengka, Sukabumi, Sumedang, Tasikmalaya

9 Central Java Cilacap, Demak, Pati, Semarang

10 West

Kalimantan

Bengkayang, Kapuas Hulu, Landak, Melawi, Pontianak, Sambas, Sanggau, Sekadau,

Sintang

11 North Sulawesi Bolaang Mongondow, Kep. Sangihe, Kep. Talaud, Minahasa Selatan, Minahasa Utara

12 South Sulawesi Bantaeng, Barru, Bulukumba, Enrekang, Luwu Utara, Luwu, Maros, Palopo, Sidenreng

Rappang, Soppeng, Tanah Toraja, Wajo

13 West Nusa

Tenggara

Bima, Dompu, Lombok Barat, Sumbawa Barat, Sumbawa

14 East Nusa

Tenggara

Alor, Belu, Ende, Flores Timur, Kupang, Lembata, Manggarai Barat, Sikka, Sumba Barat,

Sumba Timur, Timor Tengah Selatan, Timor Tengah Utara

15 Bali Bangli, Karangasem

16 Bangka

Belitung

Bangka Barat, Bangka Selatan, Bangka Tengah, Bangka Timur, Belitung

17 Banten Lebak, Pandeglang

18 Gorontalo Boalemo, Bone Bolango, Gorontalo

19 South

Kalimantan

Balangan, Banjar, Hulu Sungai Selatan, Hulu Sungai Tengah, Kota Baru, Tabalong, Tanah

Bumbu, Tanah Laut, Tapin

20 East

Kalimantan

Berau, Kutai Barat, Kutai Kertanegara, Kutai Timur, Pasir

21 Riau Islands Bintan, Karimun, Lingga

22 Maluku Buru, Kepulauan Aru, Maluku Tengah, Maluku Tenggara Barat, Seram Bagian Barat

23 Riau Bengkalis, Indragiri Hilir, Indragiri Hulu, Kep. Meranti, Pelalawan, Rokan Hilir, Rokan

Hulu, Siak

24 Central

Sulawesi

Banggai Kepulauan, Banggai, Donggala, Morowali, Parigi Moutong, Poso, Tojo Una-Una,

Toli-Toli

25 South East

Sulawesi

Bombana, Buton, Kolaka Utara, Kolaka, Konawe Selatan, Konawe, Muna, Wakatobi

26 West Sumatera Kepulauan Mentawai, Lima Puluh Koto, Pasaman

27 South Sumatera Banyuasin, Lahat, Muara Enim, Musi Banyuasin, Musi Rawas, Ogan Ilir, Ogan Komering

Ilir, Ogan Komering Ulu, OKU Selatan

28 North Sumatera Deli Serdang, Humbang Hasundutan, Langkat, Mandailing Natal, Nias Selatan, Pakpak

Bharat, Serdang Bedagai, Simalungun, Tapanuli Selatan, Tapanuli Tengah, Tapanuli Utara,

Toba Samosir

29 DI Yogyakarta No identified IPs

30 North

Kalimantan

Nunukan, Bulungan, Malinau

*) List of names and locations of IPs in the village level is included in the World Bank Study on IPs Screening (2010)

105

ANNEX 19: CHANCE FINDS PROCEDURES

1. Definition. A chance find is archaeological, historical, cultural, and remain material encountered unexpectedly

during project construction or operation. A chance find procedure is a project-specific procedure which will be followed

if previously unknown cultural heritage is encountered during project activities. Such procedure generally includes a

requirement to notify relevant authorities of found objects or sites by cultural heritage experts; to fence off the area of

finds or sites to avoid further disturbance; to conduct an assessment of found objects or sites by cultural heritage experts;

to identify and implement actions consistent with the requirements of the World Bank and Indonesian law; and to train

project personnel and project workers on chance find procedures. In the contract agreement with the contractor, there

must be provisions and guideline concerning what measures must be taken if these artefacts and structures are found

within the sub-project site.

2. Objectives.

a. To protect physical cultural resources from the adverse impacts of project activities and support its preservation.

b. To promote the equitable sharing of benefits from the use of PCR.

3. Procedure. If the subproject activity discovers archeological sites, historical sites, remains and objects,

including graveyards and/or individual graves during excavation or construction, shall:

a. Halt the construction activities in the area of the chance find;

b. Delineate and fence the discovered site or area;

c. Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive

remains, a night guard shall be arranged until the responsible local authorities or the District/Provincial Department

of Culture, or the local Institute of Archaeology if available to take over;

d. Forbid any take of the objects by the workers or other parties;

e. Notify all subproject personnel (i.e. sub-project workers, Tim Pelaksana Kegiatan or TPK, local agency responsible

for the protection of physical cultural resources) of the finding and take the preliminary precaution of protection;

f. Record the chance find objects and the preliminary actions;

g. Notify the responsible local authorities and the relevant Institute of Archaeology immediately (within 24 hours or

less);

h. Responsible local authorities would be in charge of protecting and preserving the site before deciding on subsequent

appropriate procedures. This would require a preliminary evaluation of the findings to be performed by the local

Institute of Archaeology. The significance and importance of the findings should be assessed according to the various

criteria relevant to cultural heritage; those include the aesthetic, historic, scientific or research, social and economic

values;

i. Decisions on how to handle the finding shall be taken by the responsible authorities. This could include changes in

the subproject layout (such as when finding an irremovable remain of cultural or archeological importance)

conservation, preservation, restoration and salvage;

j. Implementation for the authority decision concerning the management of the finding shall be communicated in

writing by relevant local authorities;

k. The mitigation measures could include the change of subproject design/layout, protection, conservation, restoration,

and/or preservation of the sites and/or objects;

l. Construction work at the site could resume only after permission is given from the responsible local authorities

concerning safeguard of the heritage; and

m. The subproject proponent responsible to cooperate with the relevant local authorities to monitor all construction

activities and ensure that the adequate preservation actions already taken and hence the heritage sites protected.

4. Requirements. The TPK should include the chance finds procedure in the Work Plan or community’s contract.

106

ANNEX 20: NOTES FROM PUBLIC CONSULTATIONS OF THE ESMF

Public Consultation on Draft Environmental and Social Management Framework

Institutional Strengthening for Improved Village Service Delivery Project (P3PD)

14 – 15 January 2019

Day 1, 14 January 2019

Talk Show Session: Strengthening the Village Government and Development towards an Increased Quality of Village

Expenditures

Resource Persons:

1. Deputy for Regional Development, Bappenas

2. Director General of Village Development, Ministry of Home Affairs (represented by the Secretary of the

Directorate General)

3. Director General of Village Community Development and Empowerment, Ministry of Village, Development of

Disadvantaged Regions and Transmigration

Q&A and Discussion:

1. DPMD Barito Kuala Regency (Batola)

- In the learning of modules for village facilitators, the principles of equality and openness including gender

equality and partiality for the poor, have been applied. This must be strengthened by technical instruments up

to the level of planning and implementation of the village development program.

2. DPMD Central Kalimantan Province

- The village development programs that include physical investment should be able to consider environmental

and social aspects. We agree with the aim of integrating environmental and social management framework in

all village development guidelines and modules.

- Through this program, capacity building must be measurable and sustainable. If this program is completed, it is

expected that the trained human resources will be able to transfer their knowledge to other village facilitators

and village communities in general.

107

Day 2, 15 January 2018

SESSION 1 - Explanation of Components of the P3PD Activities Program

Materials:

1. Strengthening of Village Government Institutions and Strengthening of Village Government Performance by

the Director of Facilitation of Capacity Development for Village Apparatus, Ministry of Home Affairs (MoHA)

2. Promoting Participatory Village Development by the Director of Village Community Development, Ministry of

Village (MOV)

3. National Level Coordination, Supervision and Monitoring by the Director of Disadvantaged Regions,

Transmigration, and Rural Areas, Bappenas

Resource Persons:

1. Mr. Endang Basuni (MoHA)

2. Ms. Evi (MoV)

3. Mr. Sumedi (Bappenas)

Moderator: Ms. Lily (World Bank)

Mr. Endang Basuni (Ministry of Home Affairs): P3PD Component 1

- There are 62 selected districts participating in this consultation. It is important for all parties to understand what

is and what are the objectives of environmental and social management and to subsequently integrate them into

the program.

- There are 4 components of P3PD, as follow:

1. Strengthening village government institutions.

2. Promoting participatory village development.

3. Improving village performance.

4. National monitoring coordination and supervision.

- Components 1 and 3 P3PD are to be managed by Ministry of Home Affairs’ DPMD, Component 2 by MOV,

and Component 3 by BAPPENAS. Some of the objectives of the P3PD Program are:

1. How to improve the performance of the government and village apparatus through capacity building

systems based on demand and needs.

2. Improvement of community assistance system.

3. Management of a performance-based incentive transfer system.

4. Technology-based village governance information system to improve village performance.

- In the end, it is hoped that the P3PD can help improve the quality of village spending as expected to improve

the quality of life of the community.

- Related regulations have been established including: Village Law UU No. 6, Government Regulation PP No.

43 that has been revised to PP No. 47, Ministry of Village Regulation that oversees village development, and

there is also the Regulation of Head of LKPP regarding the execution of APBDes implementation process.

- Portrait of the day, from almost 75,000 villages, not all of them have prepared RPJMDes properly as a base for

APBDes allocation for the village development program implementation. MoHA Regulation No. 66/2014 is to

support village governments to be able to exercise their authority. This will affect the planning process of the

RPJMDes and RKPDes into the village budgeting process. At present, there are still many villages that carry

108

out activities that are not within their authority. Many of the districts have not responded to the order of Regent

Regulation (Perbup) regarding village authority.

- The P3PD program is expected to address such matters. It is hoped that in the future all districts will immediately

establish a list of village authorities so that the village can follow up with village regulations towards an

accountable APBDes. Especially considering the funding sources provided to the villages that reaches the

amount of IDR 450 trillion. This must be accompanied by the readiness of adequate capacity of the village

apparatus.

- Three challenges in village governance:

1. Regulations that are not aligned, and the roles and responsibilities of stakeholders that are not integrated

have an impact on well-structured and measurable patterns of guidance and supervision.

2. Village Government human resources in carrying out the functions of:

– Planning and budgeting, implementation, reporting and accountability,

– Results in village expenditure that has not been able to contribute optimally to the four areas of

authority in the village.

3. Development and supervision that have not been optimally implemented by the village authorities or

supra desa.

- Many cases were found where the village did not conduct a development and supervision or binwas due to

unavailability of budget. There has been a revision of Permendagri No. 38/2018, which regulates the budget for

developing village administration. The role of binwas is to guard. Capacity in sub-districts will be strengthened

through the role of village technical facilitators in the sub-districts.

Ms. Evi (Ministry of Village): P3PD Component 2

- Current conditions, of the 500 districts/cities not half of them have established the regulation of Perbup regarding

the List of Village Authorities. As part of capacity building, this will be facilitated through technical guidance

and training.

- The Ministry of Village's specific activity in the P3PD Component 2 is to encourage a participatory village

development. The village consultative forum (Musyawarah Desa or Musdes) and village development planning

forum (Musyawarah Perencanaan Pembangunan or Musrenbang) does not only involve the village government,

but also the village representative council (Badan Permusyawaratan Desa or BPD) and community elements.

How to increase the capacity of these elements in synergy and balance.

- The unavailability of budget allocation from the Provincial or District Budget for training of the BPD. This is a

big homework and is still has a long way to go. It is expected that the program activities can address this issue.

- The general objective of Component 2 is to build the capacity of village community and community groups to

be able to improve the quality of achievements of village development. In order to achieve quality development,

achievements must be measurable.

- We have comprehensive data regarding the use of village funds. Most village funds are used for infrastructure.

The problem is, can the results of this utilization show an increase in the progress of the village development?

To measure the village development progress, we need to have reliable data and information regarding the social

and economic conditions in the village. The Component 2 will also help to address this issue.

- Specific objectives of Component 2 are to strengthen systems of capacity support and village development

within MoV. This will be achieved by revamping and supporting programs within MoV to be more flexible and

adaptable to better respond to the needs, and to facilitate innovation and cross learning for community capacity.

This component is divided into the following sub-components.

- Specific objectives of Sub-component 2A are:

1. Improving the village support service by building the competency of village facilitators using digital

tracking systems, improving learning media, and adopting digitally-based applications (GoDesa);

2. Encouraging the simplification of village development guidelines and regulations to strengthen the

implementation of participatory development in villages

109

- Activities under Sub-component 2A includes:

1. Technical assistance to support to the design and development of the GoDesa PLD digital application

for facilitator management.

2. Updating and digitizing capacity building modules and programs for village facilitator training.

3. Monitoring the performance of delivery systems for capacity building, facilitator support, etc.

4. Supporting technical assistance for harmonization of regional regulations.

- The specific objectives of Sub-component 2B is to improve the quality of community participation and social

accountability in village development governance. Activities under this subcomponent will focus on improving

the performance of community cadres and the development of community learning centers.

- Activities under Sub-component 2B includes:

1. Improving the performance of community cadres and the development of community learning centers.

Strengthening of village cadres, or community volunteers, with a view to reactivate their role in village

development.

2. Continued technical support to Community Learning Centers, including development of peer-to-peer

exchanges, “people’s schools” (Sekolah Rakyat), joint learning activities and facilitated interactions.

These programs were developed under the Village Innovation Program and would be further supported

and replicated across all participating villages.

3. Develop social accountability monitoring mechanisms that, alongside the reactivation of cadres, is

expected to improve the quality of participation and accountability in village governance

All activities in subcomponent 2B will be digitally integrated in stages through the community learning system

Akademi Desa 4.0, which will be developed under component 2C.

- Subcomponent 2C focuses on the development and deployment of digital systems for improved village

innovation and development.

- Activities under Sub-component 2C includes:

1. Establish a digital community learning platform (Akademi Desa 4.0).

2. Develop a smart village digital system as a platform to accommodate and disseminate learning

materials and knowledge to village communities.

3. Develop and implement a modern electronic system for recording/monitoring procurement, payment

transactions and performance.

- There are 8 locations for training centers so far, and although the trainings have been carried out throughout

during 2015-2018, the target has not been achieved, it has only reached 1,360 villages out of the entire villages

in Indonesia. Through the Akademi Desa, the capacity building of community and facilitators in all villages will

be faster.

- Specific Objectives of Sub-component 2D are:

1. To manage the integration of work plans and realization of annual activities, based on proposals from

each directorate involved in Component 2.

2. To ensure the roles, functions and responsibilities of each directorate to carry out Component 2

activities in accordance with the responsibilities and work plan.

3. To ensure the availability of budget allocations and technical assistance needed by each directorate in

carrying out their activities, including the availability of Rupiah murni.

4. To integrate input into required reporting, both in Management Information Systems (SIM) and other

reports, for example Interim Financial Report (IFR).

110

- The program structure of Component 2 is as follows:

Mr. Sumedi (Bappenas): P3PD Component 4

- Village development is part of socio-economic and cultural transformation. In this transformation, it is important

for us to push for a change from comparative advantage into a competitive advantage.

- The objective of the Component 4 is to improve and strengthen national coordination, harmonization of

regulations, monitoring, and supervision of village development. This will be achieved through the

establishment of a National Coordination Platform under the project. This platform would be chaired by the

Coordinating Ministry for Human Development and Cultural Affairs (Kementerian Koordinator Bidang

Pembangunan Manusia dan Kebudayaan, Kemenko PMK), and would be supported by a Secretariat under

BAPPENAS, who would oversee the management and coordination efforts, and the integrated information

system.

- Component 4 will provide for the development of an Integrated Data and Information Systems on Villages

(InfoDesa), including the provision of technical assistance, procurement of hardware and software, preparation

of procedures for collecting, verifying and integrating various village data systems, and data analysis by various

stakeholders (i.e. a dashboard). Detailed descriptions of InfoDesa will be developed in the General Guidelines

and the Project’s Technical Guidelines.

- The current challenge is basic services and public services that still need to be addressed. Bappenas will

encourage transformation through:

1. Improvement and simplification of regulations, for example the village financial report into just one

sheet that covers reporting on what outputs have been achieved, what is used for, etc.

2. Development of integrated data and information systems. The latest BPS data, the 2018 Podes, shows

some improvements. The basic service performance index has improved, infrastructure also increased

by 4% even though it is still below 50%, transportation has been above 50%, and public services have

only increased slightly but have also been above 50%, village administration has shown improvements.

3. Knowledge is also important to manage, in addition to data and information.

4. Improvement of basic infrastructure.

5. Strengthening the role of the sub-district. For example, in Japan, sub-districts are the spearhead of

development. It is hoped that improvements can be realized through this program cooperation with the

World Bank.

6. Capacity building of the apparatus, how to strengthen village and sub-district officials as part of the

changes.

111

- Our task is to manage these changes from the village to grow and then become independent. Once they have

become independent villages, the challenge of the next 5-10 years is whether the village will remain a village

or become a village characterized by a city with the development of facilities and infrastructure.

- This component would also finance the formal establishment of a National Coordination Platform for Village

Development. This platform would be chaired by Coordinating Ministry for Human Development and Cultural

Affairs (Kementerian Koordinator Bidang Pembangunan Manusia dan Kebudayaan, Kemenko PMK), and

would be supported by a Secretariat under BAPPENAS, who would oversee the management and coordination

efforts, and the integrated information system. Finally, this component would support evaluations, including

impact evaluations, of the program’s interventions.

Q&A and Discussion:

1. DPMP Kabupaten Kupang, Bapak Yohanes

- The role of facilitation and supervision: internal supervision (inspectorate) is still inadequate and the scope of

the audit is very broad, includes all OPDs, schools, health centers, sub-districts, and the 160 villages spread

across 24 sub-districts in Kupang District. Auditors are still very limited, compared with the village budget that

needs to be audited. Many villages have not been audited for several years, unless there is a special request. If

there is no request, it is considered as operating well without problems.

- Sub-district facilitators: there are verification team and assistance team but there are still limitations in terms of

capacity, facilities and infrastructure, so that improvements are needed.

- Digitizing the village: this is a big problem because the telecommunications network in Kupang is not all over

reliable.

- Village facilitators: the capacity of recruited facilitators is inadequate, especially in regards to knowledge about

environmental and social management. In addition to the quality of human resources, quantity is still very

insufficient. It is very difficult to reach villages in Kupang with the current ratio of 1: 3 or 1: 4 between

facilitators and villages. It would be very good if the village facilitators could be multiplied and the ratio

increased to 1 per village. Suggestions for nomenclature modification related to Experts (Tenaga Ahli or TA) in

the district to become Faskab or District Facilitators. The expenditure on TA is quite large but the impact to date

is not comparable.

- Until now, village facilitators and technical facilitators have been trained more on data collection than providing

facilitation or facilitating participatory deliberations. Directions are on track but in terms of implementation still

need improvement.

2. DPMD Kabupaten Badung, Bapak Sridana

- The village apparatus and facilitators were overwhelmed with technological innovations which make them quite

confused. Various kinds of regulations issued by the Ministry of Home Affairs and Ministry of Village also

created confusion due to overlapping of authorities in the villages.

- These 4 P3PD Project Components – Component 1 and 3 (Ministry of Home Affairs), Component 2 (Ministry

of Village), and Component 4 (Bappenas) – if not managed properly would have the potential to create more

confusions for the villages.

- Village data must be strengthened: existing village profiles can be improved, so no need to make new ones.

3. DPMD Sumatera Selatan, Bapak Tabrani

- It is important to explore the village's potential. The community and village apparatus must be trained.

Facilitation to apparatus, village facilitators and community must be carried out consequently and consistently.

The Village Head is a policy maker and political apparatus, not a bureaucratic apparatus.

- Akademi Desa must be close to the region. It would be good if the Akademi Desa was built in each province.

Indeed, there will be consequences of budget costs, but this academy will produce a group of people with a

common vision and mission and have a well understanding on the village development program planning and

implementation.

112

4. DPMD Kabupaten Sumbawa, Bapak M. Ikhsan

- Facilitation must be consistent (facilitation to the facilitators and community in the villages). In agreement on

the Akademi Desa, but should be close to the region, there should be an Akademi Desa in each province for

village development cadres.

- In agreement with the concept of developing digital-based villages. Through village digital-based development,

updating and processing data will become easier.

- Back to the village's main task in accordance with Law No. 6/2014: governance, development, community and

empowerment. Prioritized use of village funds should not be determined by just one institution but shall be

because of the synergy of various related institutions.

- Status of village development, we need to synchronize one index that can describe village development status up

to the independent village level.

- To strengthen the villages, the strengthening of the BPD should always be carried out in the development of rural

areas.

Response from Resource Persons:

1. Bappenas

Regarding the data, it has been agreed with the Ministry of Home Affairs and Ministry of Village to determine one village

index for the basis of the preparation of development policies and strategies on village development, which will later be

incorporated into the RPJMN 2020-2024 and will be measured annually. With this accurate database there will be 1 data

and 1 map. Coordinate-based village maps will be sought, but beforehand the village boundaries issues must be addressed

first. Institutions must be reorganized. Bappenas as the coordinator will ensure synchronization before the Ministry of

Home Affairs, Ministry of Education and Ministry of Religion issue regulations.

2. Ministry of Home Affairs

All components of the activity program will be utilized to the maximum extent possible for activities in the villages.

Synchronization of regulations based on Joint Decree (Surat Keputusan Bersama or SKB) between 4 Ministries and

coordination are important for the success of all activity components of the program. The program context is so that as

many benefits are received by the village government.

Facilitation is part of the role of binwas. The Ministry of Home Affairs will play a role in the sub-district, village

government and BPD.

3. Ministry of Village

This program will maximize the existing guidelines, technical guidelines or modules, and will not make new instruments.

The environmental and social management aspects will be strengthened through guidelines, technical guidance or

existing learning modules.

The capacity of facilitators is currently inadequate. It is hoped that this P3PD can answer that problem.

Based on PP No. 43 the village's main facilitator is OPD. Despite the availability of professional facilitators, the OPD

facilitators shall not be forgotten. Knowledge transfer will be able to address the issue of current capacity or regulation,

113

SESSION 2 – Integrating the Environmental and Social Management Framework into the P3PD program

Resource Persons:

1. Mr. Beni, Head of Sub Directorate of Capacity Standards, Directorate of Facilitation of Capacity Development

for Village Apparatus, Village Government, Ministry of Home Affairs

2. Mr. Marwoto, Head of Planning Division, Planning Bureau, Ministry of Village

3. Ms. Hindun, Head of Sub-Directorate of Rural Affairs, Bappenas

Moderator: Ms. Indira Dharmapatni (World Bank)

Moderator

This program is an opportunity for stakeholders of the Ministry of Home Affairs, Ministry of Village, Bappenas,

provinces, districts and villages to further strengthen the aspects of environmental and social management into all

program components.

Mr. Beni (Ministry of Home Affairs)

- Regarding the Environmental and Social Management Framework or ESMF, there are 12 main issues, from the

Ministry of Home Affairs side. We will focus on 2 main issues: mainstreaming and integrating the environmental

and social management framework in implementing and achieving the objectives of the P3PD.

- Ministry of Home Affairs is responsible for the implementation of Components 1 and 3. The structure of program

implementing organizations includes PIUs at Bappenas, Ministry of Home Affairs, and Ministry of Village,

which will be supported by management consultants at the national level. Then there is the PIU at the district

level, then Experts at the provincial, district, and sub-district levels, and the Steering Committee that will guide

and provide program direction.

- This ESMF concept framework will not only be a reference and guide at the central level but will also at the

provincial, district, sub-district and village level. The substance of the program will be carried out in each layer

of government. Capacity building will be carried out at all central, provincial, district, sub-district and village

levels.

- The objective of the ESMF development is to provide references and guidance for project management staff at

national, provincial, district, sub-district and village levels, as well as consultants, facilitators, and community

groups involved in the implementation of the Village Law to:

1. Strengthen and integrate environmental and social sustainability appropriately into new instruments

and approaches, such as guidelines, manuals, training modules, etc. This is not new, we have done this

and have considered environmental and social management in the implementation of the development

program so far. For example, in Bali that is very concerned about environmental and social issues,

indigenous peoples, etc. We will integrate this into the instruments that are being prepared in the P3PD

program.

114

2. Screen and identify the potential impacts of environmental and social safeguards from physical

investments financed by village incentives, types of instruments for mitigation measures.

3. Conduct institutional arrangements and capacity building for integrating the environmental and social

sustainability aspects into the project implementation; and

4. Ensure public consultation, disclosure, grievance redress mechanisms are to be disclosed, so that the

public are informed and understand, and can channel complaints regarding environmental and social

issues.

5. Capacity building plan.

6. Monitoring and evaluation.

- If these ESMF aspects along with regulations, guidelines, modules are not integrated and are not understood by

village officials, there are potential risk impacts including planning that is not environmentally friendly, lack of

attention to aspects of disaster/climate change in the planning and implementation of the village development

program. Through this P3PD, we will improve this, so that the environment and social management are integrated

in the regulations, guidelines or modules that will be used for village officials and facilitators.

- The Ministry of Home Affairs as PIU at the central level, the DG of PMD and the balai team have prepared the

relevant regulations and guidelines. Also, in the regions there are regional regulations, guidelines, training

modules in each province, which are expected to accommodate environmental and social issues. Through the

P3PD, the the environment and social management aspects will be integrated into the existing regulations at the

central or regional level.

- There have been efforts to accommodate these issues in central and regional level. Several regulations to ensure

environmental and social sustainability in village development, including Law No. 6, Permendagri No. 114 and

No. 20, training modules, and TOT which have begun to include environmental and social issues in them. Then

also the RPJMDes, RKPDes. We need to encourage all actors in the program planning and implementation to

consider and integrate environmental and social sustainability aspects, so we will be able to reduce the potential

for environmental and social impacts.

- Another issue that needs to be accommodated is planning and budget documents. Does the RPJMDes have the

sense and spirit to strengthen the village community, what about the issues of indigenous peoples, women,

children, people with disabilities, climate change and disaster risk management. Laws relating to indigenous

peoples are being discussed. We must encourage these so that this complements the regulations, training modules,

and all documents to strengthen the capacity of village and institutional apparatus.

- Specifically, Component 1 will include the proposed strengthening of the following elements:

1. Minister of Home Affairs Regulation No. 114/2014 – Village Development Guidelines

Strengthening environmental and social sustainability aspects in the regulations and guidelines, such

as consideration of disaster risk/ climate change mitigation; inclusion of persons with disabilities within

the community; inclusion of indigenous peoples.

2. Minister of Home Affairs Regulation No. 20/2018 – Village Financial Management Guidelines

There are already environmental and social sustainability aspects in the details of the budget, but

specific activities need to be specified that are in accordance with environmental and social

management needs.

3. Training modules for village officials in preparing the RPJMDes, RKPDes and APBDes. Improvement

of environmental and social sustainability aspects, for example: identification and screening of

potential environmental and social impacts/ problems; aspects of disaster and climate change; aspects

of indigenous peoples; preparation of required environmental and social management instruments;

disclosure of information; budgeting for preparation and implementation of the instruments;

monitoring and supervision of the program implementation.

4. It could be also developing a new Technical Guidelines on Environmental and Social Sustainability for

the Implementation of the Village Law by utilizing voluntary learning obtained from the experience of

PNPM-Rural Technical Operational Guidelines implementation.

- Component 3 will be related to the incentive system, including: innovative activities to strengthen regional

economic development, women's empowerment in productivity, small-scale physical infrastructure (with a

115

negative list), innovative technology in small-scale water supply facilities, disability inclusive facilities for

schools and early childhood education centers. We will pay attention and we will assess and measure the

performance of the village and then provide more incentives. Then we will also pay attention to the negative list

in the program instruments, such as the prohibition on the use of hazardous materials (tobacco, pesticides,

asbestos, etc.). This list was also previously used on the PNPM negative list.

- Regarding indigenous peoples, we agree to concentrate on maintaining the existence of indigenous peoples and

we intend for them to get added value and benefits from this program.

- Some general provisions of the ESMF regarding Governance:

1. The responsibility for implementing the entire ESMF is in the Ministry of Home Affairs and Ministry

of Village.

2. The NMC will assist the PIU in screening compliance with the proposed activities and assess impacts

and appropriate mitigation measures. The NMC will discuss these with PIU in the Central and Regional

level.

3. The village government or Activity Implementing Team (Tim Pelaksana Kegiatan or TPK) will be

responsible for screening project proposals by using screening checklists and identifying potential

environmental impacts and mitigation measures.

4. Components 1, 2 and 4 will not involve physical or preparation of any plan that will lead to the

implementation of physical investment but focus on mainstreaming and integrating the environment

and social aspect into the existing guidelines and modules of village development program. Measures

to prevent the environmental impact of electronic waste on the environment and human health can

follow procedures or protocols for electronic waste disposal developed by the Government.

- Some general provisions of the ESMF related to the Principle:

1. Avoid or minimize negative impacts.

2. If negative impacts cannot be avoided, mitigation measures must be taken to minimize the impacts that

transpire.

3. Environmental management, management of indigenous peoples must be based on the principles of

transparency, participation and public consultation not limited to the Regional Government, but also

from local NGOs, academic institutions, and the community.

- Some of the environment and social management instruments are describes in the ESMF and can be used and

adjusted with the local context. We hope that these instruments can be considered by the facilitators in both the

village and the local areas through coordination with technical and village facilitators.

- There is a SAPA complaint handling system in the Ministry of Home Affairs related to issues relevant to the

Ministry of Home Affairs, there was other complaint mechanism system in the past adopted under the PNPM.

Mr. Marwoto (Ministry of Village)

- This Draft of ESMF is the initial concept or initial framework of the P3PD. Suggestions and inputs are highly

expected to make this framework better.

- It is important to know the quality of utilization of village funds. Output can be made but what are the significant

benefits? We must be able to see the gaps. This capacity has not been maximized and must be observed more

profoundly. How can the output and outcome of village funds be maximized? There are other funding sources

and through collaboration with relevant Ministries/Institutions and the World Bank we optimize synergy.

- Village innovation so far has been quite successful. But then, how can the apparatus absorb knowledge from

other villages that are quite successful with regard to village innovation.

- Ministry of Village is responsible for Component 2 of the P3PD. How can we promote participatory process in

the village development? For example, through digital info on GoDesa; digital market technical service provider;

Akademi Desa 4.0; community learning centers; interactive chat portal – such effective 2 directions between the

central and the province can establish communication on village development planning; and Smart Village -

community learning system related to village innovation.

116

- Regarding mainstreaming environmental and social management aspects, for example related to the GoDesa

village digital info platform, how to add information about the environment and social activities including

disaster, indigenous peoples and other matters that have not been previously considered will influence the process

of preparing village development program.

- Akademi Desa 4.0 will consider also environmental and social management aspects, among others, by identifying

potential environmental and soial impacts and problems, include disaster risk management and climate change

aspects into consideration in preparing village development program. There are also community learning centers,

interactive portal that can function as a knowledge-sharing tools.

- We also integrate environmental and social sustainability aspects into the current technical guideline, modules

and as well as other references for priority decision making.

- But the essence of all this is not the module, but how environmental and social management aspects

mainstreaming is included in the module content. So far, environmental and social management aspects have not

been a concern in village development.

Ms. Hindun (Bappenas)

- Component 4 aims to improve and strengthen national coordination, harmonization of regulations, monitoring,

and supervision of village development.

- This will be achieved through the establishment of an integrated information management system that offers real

time incorporation of key metrics for village development under a single information system (InfoDesa). This

information management system will draw on existing data collected through a variety of government agencies,

and will integrate these into a single platform, accessible via a dashboard where data can be visualized by

different levels of government through web and application-based interfaces. Data to be integrated in this

platform may relate to village poverty status, income, health, nutrition, education, existing infrastructure,

exposure to disasters and climate-related hazards (e.g. droughts, floods, storms, coastal inundation, etc.), and

community assets at risk, land and forest fire hotspots and related greenhouse gas emissions, etc. Linkages to

existing real-time data bases (e.g. for disaster early warning, weather forecasts) and indexes (e.g. climate

vulnerability and food security indexes), which are relevant for village-level planning, will be explored.

- Integrated data management system related to digital platforms, Akademi Desa 4.0, InfoDesa. Environment and

Social Sustainability is expected to be included in the central and regional development systems.

- The ESMF implementation should not hamper potential dynamics. It is hoped that the social dynamics of the

government will be managed well to bring forth new innovations in village activities. So that with this dynamic,

environmental mainstreaming can be done in the sustainable development corridor.

Key Notes:

1. Capacity Building is a concern of all parties. This is the key to the 5-year of Village Law Implementation.

2. Mainstreaming of environment and social management aspects is expected not to hamper but instead to improve

the quality of village development. The implementation of the administration on managing or integrating

environment and social management aspects should not be complicated, must be practicable and there must be

standards applicable for all villages.

3. Support is also needed from Bappenas – allocation of funds to each component. Mainstreaming is not only about

methods or instruments, there is also a need for budget allocation to mainstream for strengthen environmental

and social aspects into the relevant regulations, guidelines and modules.

4. These are just the first steps. Detailed technical guidelines in integrating environment and social management

aspects into the village development program require further consultations in the field.

Q&A and Discussion:

1. Balai Pemerintahan Desa Provinsi Lampung, Bapak Effendi

- The lack of social justice in village development still occurs, especially in relation to village spending. There

are tasks that cannot be implemented due to the rules regarding the prioritized use of village funds.

117

- Monitoring and evaluation for the implementation of village development in accordance with the mandate of

the Village Law must be carried out.

2. Pusdatin of Ministry of Village, Bapak Arif

- Based on the MCA-Indonesia project experience, there are three levels of ESMF at MCA-Indonesia (policies,

guidelines and implementation/ instrument). This ESMF will be a binding document through the later

implementation in the field. During the MCA-Indonesia project, farmers in Tanjung Jabung Timur who intended

to build canal blocks must follow the requirements of the ESMF document that had been prepared. Based on the

experiences, preparing SPPL requires a much more expensive cost than the value of the project. The USD 10,000

incentive per village needs to be reviewed more carefully so as not to cause problems related to regulation later,

reflecting on the MCA-Indonesia experience where there are no specific regulations to cover small projects so

that the treatment applied was equated with large- scale projects.

- Matters governing. In agreement with the aim to maximize benefits for indigenous peoples. There have been

several recent regulations that have opened up access for indigenous peoples to forest management. Please

include the regulations in the environmental and social management framework and conduct further review of

the ESMF instrument pertaining to the indigenous peoples.

- Bappeda and Environment Affairs Agency in the regional level must be included in integrating the

environmental and social management aspects into the programs and learning modules.

3. Provinsi Banten, Ibu Enong

- There must be a synergy over the 4 components. The many rules and regulations often create confusion.

- Coordination with OPD. The village should now be able to foster as they have become independent village.

Village is now no longer an object but the subject of development. The role of the province is related to guidance,

coordination and evaluation. We strongly encourage to clearly define village authority, it is hoped that there will

be no overlap between district and village authorities.

- Need to involve the Ministry of Environment in this matter.

4. Asosiasi Pemerintah Desa Indonesia Provinsi Gorontalo, Bapak Habibullah

- Learning from PNPM there was a simpler mechanism, where there was only a list of exceptions for activities

that may not be carried out, the rest can be carried out in accordance with Musdes.

- Environmental issues exist if there is a disaster, it is necessary to include environmental and social management

aspects in developing capacity for village apparatus, village facilitators and village communities, especially

disaster risk management issues.

Response from Resource Persons:

1. Ministry of Home Affairs

Participants agreed to mainstream environmental and social management, but the implementation of mainstreaming shall

not complicate the implementation of the program. There must be environmental and social management instruments

that are adapted to the local context and field conditions in the regions.

Capacity building is important for village officials, village facilitators and village communities. This has been done since

2015 but the target has not been achieved as expected and also requires substantial funds.

Ministry of Home Affairs and Ministry of Village will conduct more technical consultations and discussions with NGOs

or local actors engaged in the environment and social management.

The capacity building modules have considered social aspects including equality and openness. The Ministry of Home

Affairs has also coordinated and invited technical institutions (such as BNPB for disaster aspects, Ministry of ATR/BPN

for land acquisition, etc.) to jointly develop the guidelines and modules.

118

2. Ministry of Village

The preparation of capacity development modules will be done in coordination with governments and actors at the local

level.

3. Bappenas

Bappenas will support coordination at the central level and ensure the integrating environmental and social management

aspects into this program can be carried out by various stakeholders at the central and regional levels.

119

Summary of Results of Public Consultation

Public Consultation on Draft Environmental and Social Management Framework

Institutional Strengthening for Improved Village Service Delivery Project (P3PD)

14 – 15 January 2019

Mr. Imran, Head of Planning Division, Directorate of Village Development, Ministry of Home Affairs

➢ In order to ensure a successful implementation of the Institutional Strengthening for Improved Village Service

Delivery Project (P3PD), the Government of Indonesia prepares an Environmental and Social Management

Framework that refers to the applicable environmental and social management laws and policies in Indonesia.

➢ This public consultation was designed as a participatory process to receive input from stakeholders: relevant

Ministries/Agencies, regional governments, non-governmental organizations, village development practitioners,

observers, and academics in fine-tuning the draft of Environmental and Social Management Framework document

that will serve as guidelines in implementing or integrating the environmental and social management aspects in the

P3PD.

➢ Some of the inputs and suggestions that have been discussed include:

o This environmental and social management framework document is the property of the Government of

Indonesia, which must be carried out as mandated by applicable laws and regulations, especially on aspects

of environmental and social management in village development.

o This program will maximize existing guidelines, technical guidelines or learning modules, and will not

make new instruments. Environmental and social management aspects will be strengthened and integrated

into technical guidelines or learning modules for village apparatus, village facilitators and village

communities.

o It is important to be aware of the practicability of the implementation of the mainstreamed objectives and

principles of the environmental and social sustainability in various manuals, guidelines and training

modules, and the implementation of the safeguards instruments at the village level, given the nature of the

subprojects that are relatively small investments.

o The concept of digital-based village development is impressive. Village profiles and information already

exist but they still cannot be accessed or further processed. This program is expected to facilitate the actors

and beneficiaries to access and process village information digitally, both from the central level to the

regions, to the communities in the village. There is a need to provide environment and social informations

into the digital-based village information.

o The involvement of indigenous peoples in village development is important. There are already several

regulations that regulate in detail the involvement of village community in village development. This must

be included in the technical guidelines and learning modules and their implementation.

➢ Coordination, synchronization and harmonization at the central level will continue to be improved and through the

P3PD program, there have been several components that focus on increasing coordination and synchronization

among stakeholders.

➢ Mainstreaming environmental and social management in technical guidelines or learning modules is important, but

implementation shall not make the implementation of the program complicated. There must be environmental and

social management instruments that are adapted to the local context and field conditions in the regions.

➢ Ministry of Home Affairs and Ministry of Village will conduct more technical consultations and discussions with

NGOs or local actors engaged in environmental and social management and informed of the conditions in the field

to improve environmental and social management instruments that will be implemented in this program.

➢ In the draft ESMF document, there is a statement letter about the willingness of the Regional Government to

implement environmental and social management. The process of discussion related to the agreement of the Regional

Government’s must commence in advance. The draft of this document must be shared to all relevant agencies in the

Regional Government so that it can be understood comprehensively in its implementation.

120

➢ It is hoped that participants attending this first public consultation can attend the next consultations to ensure

continuous delivery of information related to the ESMF through the implementation of the program later.

➢ Suggestions and input (written) regarding the draft ESMF document are highly expected from all participants. The

draft ESMF can be accessed through http://binapemdes.id/informasi

======================================

121

DOCUMENTATION

122

LIST OF ATTENDANCE

123

LIST OF ATTENDANCE

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141