MILLENNIUM CHALLENGE ACCOUNT-INDONESIA GREEN … · Kolaka District is located approximately 165 km...

MILLENNIUM CHALLENGE ACCOUNT-INDONESIA

GREEN PROSPERITY PROJECT

PROGRAM MANAGEMENT CONSULTANT

KOLAKA

RAPID DISTRICT READINESS ASSESSMENT (RDRA)

FOR PARTICIPATION IN MCA-INDONESIA’S

GREEN PROSPERITY PROJECT

Prepared by: CDM International Inc. (CDM Smith) and Hatfield Consultants Partnership

Under Contract Number GP-B-001

Table of Contents

i

Table of Contents

Table of Contents .................................................................................................................................................... i

List of Appendices .................................................................................................................................................. i

Acknowledgements ............................................................................................................................................... ii

Executive Summary ............................................................................................................................................. iii

Section 1 Introduction ............................................................................................................................ 1-1

1.1 Background .......................................................................................................................................................1-1 1.2 Objective ............................................................................................................................................................1-1

Section 2 Methodology ........................................................................................................................... 2-1

Section 3 General Description of the District ................................................................................. 3-1

3.1 Location and Accessibility ..........................................................................................................................3-1 3.2 Demographics ..................................................................................................................................................3-1 3.3 Regional Economy .........................................................................................................................................3-2

3.3.1 Performance for the Period of 2010-2012 .........................................................................3-2 3.3.2 Development Targets for 2010-2015 ...................................................................................3-2 3.3.3 Low-Emission Economic Development ...............................................................................3-2 3.3.4 Renewable Natural Resources Management .....................................................................3-3

3.4 Spatial Plan .......................................................................................................................................................3-3

Section 4 Rapid Assessment Results ................................................................................................. 4-1

Section 5 Conclusions ............................................................................................................................. 5-1

List of Appendices

Appendix A Maps of Kolaka District

Appendix B Photographs of Kolaka Landscape

Appendix C Summary of Field Observation Activities

Acknowledgements

ii

Acknowledgements

This report was prepared with the support of MCA-Indonesia and the Kolaka District government, by the Program Management Consultant (PMC) team of MCA-Indonesia’s Green Prosperity Project (GPP). Particular support was provided by MCA-Indonesia by Pak Sigit, Pak Arief Setyadi, and Ibu Rubeta, who provided initial information and the field team’s letter of support. In Kolaka, special support is given from Pak Zainal (Head of the Research and Development Department, Bappeda), Pak Bachtiar (Head of Socio-culture Department, Bappeda), Pak Mujahidin (Head of Regional Secretary of the Legal Department) and Pak Kamidin (Integrated Services Office).

Executive Summary

iii

Executive Summary

This report provides a rapid district readiness assessment (RDRA) of the capacity, commitment, and investment opportunities of Kolaka District, South Sulawesi, to support environmentally sustainable and low-carbon economic growth through the MCA-Indonesia Green Prosperity Program (GPP). This assessment included a field visit from November 12 to 13, 2014.

The objectives of this rapid assessment were to assess the level of readiness of Kolaka District for GPP activities, and specifically examined: political conditions; institutional capacity; regulatory frameworks; social and gender analysis; and required conditions under the Millennium Challenge Compact. The result of this assessment will be used to prioritize the 11 districts for signing of MoUs with MCA-Indonesia for project implementation.

Kolaka District is located approximately 165 km from the city of Kendari (the capital city of

Southeast Sulawesi Province). Kolaka District is also accessible from Makassar and Bajoe in South

Sulawesi Province by air and by ferry respectively. The population of Kolaka District of 228,602

people in 2012 has been growing, with an average population growth for 2009 to 2012 of 2.3%.

In 2013, there was a decrease in the population because of the establishment of the new separate

district of East Kolaka.

The economic growth of the Kolaka District has been strong, with Gross Domestic Regional Product

(GDRP) growth of between 12.5 and nearly 15.0% annually from 2011 to 2013. The economic

growth in the year 2012 was supported by the positive growth of all sectors in the district, except for

the industrial processing sector which produced a negative growth. The largest sector is mining and

excavation, which also showed the greatest recent economic growth, while the smallest positive

growth was the services sector.

Kolaka has potential renewable resources to support sustainable development. Some potential renewable resources in Kolaka that may be important for GPP include hydroelectricity, micro-hydro and solar power plants. Additionally, the landscape in Kolaka offers the potential for sustainable ecotourism. Based on the criteria set for the DRA, Kolaka received 49 from the possible 60 points. The aspect that received the lowest score of 1 was on the lack of donor institutions who participate in the low-emission development and the lack of regional government incentives for green investment. This is a potential intervention area for MCA-Indonesia in Kolaka.

Section 1 Introduction

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Section 1 Introduction

1.1 Background MCA-Indonesia, under the Green Prosperity Project (GPP), has pre-selected 11 districts within six

provinces (in addition to four districts previously selected as pilot project areas) as target area for

project investments. Prior to proceeding with the GPP in these districts, their readiness to host GPP

activities must be assessed to determine which district has the greatest readiness, based on criteria

set by MCA-Indonesia that include appropriate capacity, commitment, and investment opportunities

to support environmentally sustainable and low-carbon economic growth. These rapid District

Readiness Assessments (RDRA) are intended to ensure that these targeted districts can effectively

support GPP activities, and to prioritize these 11 districts for signing of Memoranda of

Understanding (MOU) with MCA-Indonesia. These RDRAs are undertaken by the Project

Management Consultant (PMC) supporting MCA-Indonesia.

This report represents the first rapid RDRA undertaken for the GPP by PMC, for Kolaka District, Southeast Sulawesi.

1.2 Objective Objectives of this RDRA were:

To assess the level of district readiness related to: political conditions, institutional capacity, regulatory frameworks, social and gender analysis, and conformance with Millennium Challenge Compact conditions;

To support MCA-Indonesia in prioritizing the 11 pre-selected districts for MOU signing; and

To assess investment opportunities within the district for environmentally sustainable and low-carbon economic growth.

Section 2 Methodology

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Section 2 Methodology

Activities and methods used for this assessment are described below:

Secondary data provided by MCA-Indonesia for Kolaka included:

– 2012-2032 Regional Regulation on Kolaka District Spatial Plan;

– Kolaka District Medium-term Development Plan (RPJM) 2014-2019;

– Strategic Plan of the Forestry Agency;

– Strategic Plan of the Agriculture, Horticulture, and Farming Agency; and

– Strategic Plan of the Energy and Mining Agency;

In addition, PMC team also collect and examine the following documents:

– Strategic Plans of government agencies in Kolaka District

– Kolaka District in Numbers 2013

– Collection of Regional Regulations 2005 - 2013;

– Kolaka District Long-term Development Plan (RPJP) 2005-2025;

– Information from the internet, including Kolaka District website: www.kolakakab.go.id

Field visit and interviews. A field visit to Kolaka District was conducted by the PMC team from November 12 to 13, 2014, to better understand the local context for future GPP investment. Target areas visited included: the general landscape of Kolaka, rivers with potential for development of renewable energy, agriculture/agro-forestry resources, and overall conditions in Kolaka including infrastructure and land uses. The PMC team met and conducted interviews with the following District offices: Bappeda (District Planning and Development Board) and Integrated Service Office (Kantor Pelayanan Terpadu);

Minutes of meetings with the above organizations appear in Appendix C. Photographs taken during the field visit appear in Appendix B.

Data analysis. Descriptive analysis was conducted following terms of reference provided by MCA-Indonesia, and focused on components of: policy, regulation, institutional capacity, social conditions and gender, and Compact requirements. For each component, a score of 1 to 3 was provided, based on the assessment team’s estimate of the district’s readiness for GPP investment in that component. A score of 3 indicated that the district fully meets readiness criteria; 2 indicated partial readiness; and 1 indicated low readiness, based on component-specific criteria.

http://www.kolakakab.go.id/

Section 3 General Description of The District

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Section 3 General Description of the District

3.1 Location and Accessibility The topography of the Kolaka District consists of lowlands (in the west along the coast of Bone Bay)

and hills and mountains in the east (bordering East Kolaka District). The lowlands in the western

region of the district have low slopes of 0-8%, while the hilly and mountainous eastern region have

steeper slope of 8-25%.

Based on the Schmidt and Ferguson climate classification, the Kolaka District is distinguished by two

classifications which are Climate Type B with humidity of 14.3-33.3% in the Iwoimendaa to

Wundulako sub-district areas, and Climate Type C with humidity of 33.3-60% in the Pomalaa to

Watubangga sub-district areas. In terms of rainfall, the northern region which encompasses

Wundulako to Iwoimendaa sub-districts is categorized as areas with an average rainfall above 2,000

mm per year, meanwhile the southern region which encompasses Pomalaa to Toari sub-districts is

categorized as areas with an average rainfall below 2,000 mm per year.

Kolaka District is located approximately 165 km from the city of Kendari (the capital city of

Southeast Sulawesi Province) and this district is the economic gate to the western region of the

Southeast Sulawesi Province. Kolaka District can be accessed easily using ground transportation

(Trans Sulawesi highway) from Kendari, sea transportation (Bajoe-Kolaka ferry and Siwa-Kolaka

speed boats) from South Sulawesi Province and air transportation (Sangia Nibandera Airport) from

Makassar or Kendari. Map of the Kolaka District is shown in Appendix A.

3.2 Demographics The population of Kolaka District at the end of 2013 was 228,602 people, with 116,690 men

(51.05%) and 111,912 women (48.95%), producing a sex ratio of 104 men for every 100 women.

The population is spread in 12 sub-districts with an average population density of 69 people/km2. The population of Kolaka District from 2009-2012 has increased with an average population growth

for the last three years of 2.3 %/year. However, in the year 2013 there was a decrease in the

population because of the establishment of the separate district of East Kolaka, which

administratively split the population and included a portion of population from the parent district

onto this new district. In the year 2013, the working age population of Kolaka District was 226,996 people which consisted

of 116.391 men (51.48%) and 110.575 women (48.52%). The working-age population consisted of:

Labor force (163,157 people) which consists of 102,611 men (62.89%) and 60,546 women (37.11%). From this labor force, 152,442 people (93.43%) are currently working and 10,715 (6.57%) are in the process of finding a job.

Non-labor population (63,809 people) which consists of 13,780 men (21.60%) and 50,029 women (78.40%). The main activity of the non-labor population is to take care of the household (42,555 people), go to school (11,774 people), and conduct other activities (9,480 people).


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3.3 Regional Economy 3.3.1 Performance for the Period of 2010-2012 The economic growth of the Kolaka District is reflected by the increase in the Gross Domestic

Regional Product (GDRP) based on the constant prices set in the year 2000. The GDRP of the Kolaka

District based on the constant prices in the year 2010 was around Rp. 2,929.71 billion; in 2011 it

increased to Rp. 3,313.20 billion; and in the year 2012 it reached Rp. 3,808.06 billion. The economic

growth for the last three years was 13.09% (2011), 14.94% (2012), 12.51% (2013).

The economic growth in the year 2012 was supported by the positive growth of all sectors in the

district, except for the industrial-processing sector which showed negative growth (-5.45%). The

sector with the largest growth was the mining and quarrying sector (49.43%), followed by the clean

water, gas, and electricity sector (21.27%), the agriculture sector (4.54%) and with the smallest

positive growth at the services sector (4.21%).

In the economic structure of the Kolaka District in the year 2012, the largest contribution came from

the mining and quarrying sector (24.64%). The second-largest contributor was agriculture

(23.27%), followed by commerce, hotel, and restaurants (18.32%) and industrial processing

(14.74%). The other five sectors contributed less than seven percent each, including: services

(6.16%); construction (5.03%); communication and transportation (3.76%); finance, rental, and

company services (3.73%); and clean water, gas, and electricity (0.36%). One of the benchmarks for the prosperity level of a region is the GDRP per capita. Based on current

prices, the GDRP per capita for Kolaka District from the year 2009 to 2012 shows an increasing

trend. In the year 2009 it was Rp 18,808,897; in 2010 Rp 19,706,462; in 20011 Rp. 22,588,895 and

in 2012 the GDRP per capita reached Rp 26,117,030. Based on constant prices, in the year 2012 the GDRP per capita was Rp 16,658,000 or Rp. 1,388,000

per month per capita.

3.3.2 Development Targets for 2010-2015 From the baseline condition (2013), Kolaka District has targeted the following development

achievements: Growth of GDRP of 7.72% in 2014 and 8.18 % in 2015;

Inflation of 6.22% in 2014 and 5.88% in 2015;

GDRP per capita of Rp. 38 million in 2014 and Rp. 42 million in 2015;

Population above the poverty line of 85.88% in 2014 and 86.33% in 2015;

Availability of electricity (Distributable Power) of 16 MW in 2014 and 17 MW in 2015;

Percentage of families using electricity of 68% in 2014 and 69% in 2015.

3.3.3 Low-Emission Economic Development The REDD+ Management Agency (BP REDD+) has signed an MoU with several regional governments in the province and district levels. Currently, 11 provinces have signed the MoU and the Mutual Agreement for the Implementation of the REDD+ Program and Lincensing Arrangement, but Southeast Sulawesi Province and Kolaka District are not part of that group.


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However, the Kolaka Regional Government in their 2012-2017 Medium-term Regional Development Plan have stated that one of their missions is to optimize the management of natural resources and environment preservation with several programs which include:

Development of effective waste management system;

Control of contamination and damage to the environment;

Rehabiliation and recovery of natural resource reserves;

Improvement of environment and natural resource information quality and access;

Management of open green spaces;

Utilization of forest resource potential; and

Protection and conservation of forest resources.

3.3.4 Renewable Natural Resources Management Kolaka has potential renewable resources to support sustainable development. Some potential

renewable resources in Kolaka that may be important for GPP include: Renewable Energy:

– Tamboli Hydroelectricity Power Plant (Samaturu Sub-district); Konaweha Hydroelectricity Power Plant (Uluiwoi Sub-district); 19-November Mini-hydroelectricity Power Plant (19-November Village, Wundulako Sub-district); Ulu Konaweha Village Mini-hydroelectricity Power Plant (Samaturu Sub-district); a planned Mini-hydroelectricity Power Plant in Wondulako and Wolo sub-districts;

– Solar Power Plants in remote villages of every sub-district.

Ecotourism:

– The Kolaka landscape has potential for the development of sustainable ecotourism such as: Mekongga protected forest; Mangolo hot water springs (Latambaga Sub-district); Tamborasi springs (Wolo Sub-district); and Tongauna waterfall (Uluiwoi Sub-districts).

3.4 Spatial Plan The spatial plan for Kolaka is enforced by law through Regional Regulation Number (PERDA) no:

16/2012 regarding the 2012-2032 Kolaka District Spatial Plan. In this regulation, all of the regions

under the North Kolaka District are divided into the following criteria:

Protected Areas consisting of protected forest (291,745 ha) and conservation forest (21,965 ha) in Baula, Kolaka, Ladongi, Lalolae, Lambandia, Latambaga, Loea, Mowewe, Poli-polia, Pomalaa, Samaturu, Tinondo, Tirawuta, Uluiwoi, Wolo and Wundulako Sub-districts; local protected areas (coastline buffer of approximately 293.45 km in Iwoimendaa, Wolo, Samaturu, Latambaga, Kolaka, Wundulako, Baula, Pomalaa, Tanggetada, Watubangga and Toari Sub-districts ), riverbanks (Tamborasi, Iwoimendaa, Langgomali, Tamboli, Konaweeha, Mangolo, Balandete, Sabilambo, Wundulako, Mekongga, Huko-huko), and city green open spaces in City forest behind Gelora with an area of 1.30 Ha (Lalombaa Nagari Kolaka Sub-district); City forest in front of Larumbalangi Terminal with an area of 0.50 Ha (19 November Village Wundulako Sub-district);

Nature and heritage reserve areas such as: Lamedai reserve with an area of 635.16 Ha (Tanggetada Sub-district); Rawa Aopa Watumohai National Park with an area of 12,825 Ha (Tirawuta; Loea; Ladongi; Dangia; Lambandia and Aere Sub-districts); Mangolo Nature Tourism Park with an area of 5,200 Ha (Latambaga Sub-district); Laut Nature Tourism Park at Padamarang Islands with an area of 36,000 Ha (Wundulako Sub-district); and cultural/scientific sites (Complex site of Sangia Nibandera Cemetery in Tikonu Village Wundulako Sub-district,


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Complex site of Mekongga Kings Cemetery in Silea Village Wundulako Sub-district and Site of Mekongga Empire Palace in Wundulako Sub-district);

Natural disaster-prone areas such as landslide-prone areas in Tirawuta, Latambaga, Kolaka, Samaturu, Baula, Watubangga and Mowewe sub-districts; landslide-prone areas in Tirawuta, Latambaga, Kolaka, Samaturu, Baula, Watubangga and Mowewe sub-districts; and flood-prone areas in Tirawuta, Mowewe, Samaturu, Baula and Kolaka sub-districts;

Geologically protected areas such as natural disaster prone areas (see above); groundwater protection areas (springs in Kolaka, Tanggetada, Bungku, Ambesea and Ewolangka and areas around springs in Tahoa Spring Kolaka Sub-district); and karst region in Wolo and Uluiwoi sub-districts; and

Cultivation areas, which are divided into: 133,646 ha of limited production forest; 42,890 ha of permanent production forest, 11,137 ha of production forest; agriculture areas; fishery; mines; industrial area; tourism area; plantations; settlement areas (cities and villages) and other types of areas.

Section 4 Rapid Assessment Results

4-1


No. Factors

Determining District Readiness

Assessment Scoring and Discussion Document Reviewed

1. Political Analysis 1.1 Government

Transparency Policies

In the 2014-2019 Kolaka District Mid-term Development Plan, mission IV is aimed for the Good, Efficient, Clean, and Dignified Implementation of Government Spatial Plan. The synergy between the government, private sector and the community to achieve this target is facilitated by giving a larger room for the private sector and the community to participate in monitoring and evaluating the performance of the government and the development programs.

On October 14, 2014, the Kolaka District Government received a national award for the best Government Governance Index (1st Place) from 34 districts/cities in Indonesia. This award was given by Partnership, a multi-party organization from UNDP (United Nations Development Program) alongside the Indonesian Home Affair Ministry.

3 2 1 1. Mid-term Development Plan of Kolaka (2014-2019);

2. Interview with staff of Bappeda, (12-13 November 2014); and

3. http://kolakakab.go.id;

4. http://www.kolakakab.go.id/TPAD/index.html;

5. http://www.bappeda.kolakakab.go.id; and

6. http://www.suarakendari.com/kolaka-raih-penghargaan-

indeks-tata-kelola-pemerintahan-terbaik-di-indonesia.html

Although Kolaka District, as part of the Southeast Sulawesi Province is committed to implement the Law 14/2008 and Government Regulation 61/2010, there is no real witness that the system is in place to implement the public information openness. The Southeast Sulawesi Province has scored less than 50% by the National Information Committee for 2014 among other 34 provinces in Indonesia.

Some indication that the Kolaka government has the committment to implement public information transparencyare public accesss to the district information such as District in Figures, Midterm Development Plan, and other information related to the dictrict development achievements.

http://kolakakab.go.id/

http://www.kolakakab.go.id/TPAD/index.html

http://www.kolakakab.go.id/TPAD/index.html

http://www.bappeda.kolakakab.go.id/

http://www.suarakendari.com/kolaka-raih-penghargaan-



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No. Factors



1.2 Commitment to low emission economic growth

The Green Prosperity program is targeted to invest on low emission economic growth development. This will include agroforestry, crops plantation (cocoa, rubber, etc), ecotourism, and renewable energy. Kolaka district government has stated their commitment to this low emission development in the Mid-term Development Plan, where the development mission is optimization of natural resource management and environment preservation. The goal is to increase the quality of the environment by protecting the ecological function of forest ecosystem and also protecting the community from the threat of natural disasters.

3 2 1 1. Mid-term Development Plan of Kolaka (2014-2019)

2. Strategic Plan of Energy and Mineral Mining Agency (2014-2019);and

3. Interview with staff of Bappeda, (12-13 November 2014).

On the implementation side,Kolaka District has had several programs implemented, including renewable energy, such as hydroelectricity power plants, solar power plants, and geothermal power plant.

Some examples of renewable energy development plans include:

- Tamboli hydroelectricity power plant (Samaturu Sub-district); Konaweha hydroelectricity power plant (Uluiwoi Sub-district); 19-November mini-hydroelectricity power plant (19-November Village, Wundulako Sub-district); Ulu Konaweha Village mini-hydroelectricity power plant (Samaturu Sub-district);

- A plan for mini-hydroelectricity power plant in Wondulako and Wolo Sub-districts; micro hydroelectricity in Wondulako and Wolo sub-districts; and

- A plan for solar power lants in remote villages of every sub-district.

1.3 Potential land use conflict

Based on Regional Regulation No.16/2012 about Kolaka RTRWK 2012-2032 on the Allotment of Agriculture (plantation) Areas Article 29 Clause 1 Point c and Allotment of Mining Areas Article 31, the existing allotment areas already correspond to spatial plans. However, in the field, land use conflict still occurs between the private companies (nickel mine and palm oil plantation) and the community.

3 2 1 1. PERDA 16/2012 on the Kolaka RTRWK 2012-2032;

2. Interview with staff of Bappeda, (12-13 November 2014);

3. https://m3sultra.wordpress.com/2010/02/22/1500-hektar lahan-djl-tumpang-tindih/;

4. http://www.antarasultra.com/berita/267171/dibentuk-tim-penyelesaian-konflik-tanah-pt-djl;

5. http://www.antarasultra.com/berita/267423/pemkab-kolaka -diminta-tuntaskan-sengketa-lahan-sawit; and

6. http://www.mongabay.co.id/2012/05/09/massa-amuk-lokasi-tambang-di-kolaka/.

The result of interviews with Bappeda and regional government work units such as the Mining, Forestry, Agriculture, Plantation, and Environment Agencies indicate that the potential for land use conflict in the Kolaka region is moderate. One of the efforts conducted by the Kolaka government to minimise land use conflict is to provide a one-roof licensing service mechanism/procedures (i.e., an integrated service office).

https://m3sultra.wordpress.com/2010/02/22/1500-hektar%20lahan-djl-tumpang-tindih/

https://m3sultra.wordpress.com/2010/02/22/1500-hektar%20lahan-djl-tumpang-tindih/

http://www.antarasultra.com/berita/267171/dibentuk-tim-penyelesaian-konflik-tanah-pt-djl



http://www.antarasultra.com/berita/267423/pemkab-kolaka%20%20-diminta-tuntaskan-sengketa-lahan-sawit



http://www.mongabay.co.id/2012/05/09/


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No. Factors



2. Institutional Analysis 2.1 Bappeda and Sector

Agencies In the Kolaka Regional Regulation No. 2/2013 about the Organization and Work Procedures of Inspectorates, Bappeda and Kolaka District Regional Technical Agency, an explanation of the position, main task and function of the technical agency are provided.

Every organization/agency/body also has its strategic plan which are in line with Bappeda (Medium and long term development plan). The strategic plans describe strategic issues based on the task and function of the organization, and a description of the vision-mission-goal including performance indicators. These strategic plans were developed with guidance from the Kolaka District Mid-term Development Plan 2014-2019.

3 2 1 1. Mid-term Development Plan of Kolaka (2014-

2019);

2. Interview with staff of Bappeda, (12-13 November 2014); and

3. District Regulation (PERDA) Kolaka No. 2/2013 regarding Organisation and work guideline for inspectorate, Bappeda and District technical working units (SKPD).

The institutional structure at Kolaka District in general has the required capacity to support the GP investment program. Bappeda will be the main coordinator for program implementation in the field. GP investment program can be linked with strategic plans in each institution, mainly Bappeda, Forestry and Plantation Office, Environmental Office, and other relevant offices in the district.

2.2 NRM Licensing process/procedures

Community forest, tenurial forest, and community crop forest are established based on Ministry of Forestry Regulation No. 49/2008 (Village Forest), No. 52/2011 (Community Forest), and Number 23/2007-No. 31/2013 (Timber Estate Community).

With the changes of the Ministry of Forestry and Environment, it is expected that there will be no changes in the implementation of those regulations. Forestry Offices in the district is the main institution implementing and coordinating the process of NRM licensing (forestry and plantation), and Mining and Energy Office for the renewable energy licensing process.

3 2 1 1. Ministry of Forestry Regulations No. 31/2013,

No. 49/Menhut-II/2008, No. P.59/Menhut-II/2011, No. P.52/Menhut-II/2011, and No. P.37/Menhut-II/2007

2. Mid-term Development Plan of Kolaka (2014-2019); and

3. Interview with staff of Bappeda, (12-13 November 2014).

Kolaka District has a clear licensing process in natural resource management. Some Regional Regulations that regulate the licensing process include:

Regional Regulation No.5/2005 about Water Polution Management;

Regional Regulation No.4/2005 about the Implementation of Environmental Impact Assessment (AMDAL and UKL-UPL)

Although not regulated in a specific Perda, permit procedures for renewable energy and other investments has the standard process and procedures that are open and clear for investors.


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No. Factors



2.3 Non-government actors affecting district development

Some non-government organization which are involved in Kolaka development include:

WALHI; Local Self-help Forum (Forsda); Community Democracy Circle (LIDER); KPP-OTDA Kolaka; Foundation for the Environment Caring Community (YASTAMPIL); Kontak Indonesia Kolaka-Southeast Sulawesi; Projusticia Kolaka; Lira Southeast Sulawesi; Tampil Foundation; Korps Citaka Kolaka NGO; LIDIK (Community Information and Investigation Agency); IDRAP (Village and Local Community Empowerment Institution); Anti-corruption Movement (GAKI); KOMNASDESA-SULTRA; and Nature Lover Foundation (Yascita).

3 2 1 1. Interview with staff of Bappeda, (12-13

November 2014);

2. http://www.mongabay.co.id/2012/05/09/ massa-amuk-lokasi-tambang-di-kolaka/;

3. http://www.antarasultra.com/berita; and

4. http://www.idrap.or.id/idn/environment.php;

The Kolaka government has collaboration with external organizations to speed the process of reaching the goals and target of development.

Some non-government organization indirectly affect the direction of development regulations in the Kolaka District. The concern and activity of each NGO have different focuses but in general are focused on the community and environmental interest. In the Kolaka area there is a University (19 November University) which has an important contribution and role in the development of the region.

2.4 Low level government offices (sub district and villages)

Kolaka, like all districts in the Southeast Sulawesi, hierarchically consists of goverments in the district, sub-district, and village level. There are 12 sub-districts in the Kolaka District (approximately 102 villages and 33 kelurahans). In the last five years the village communities in the Kolaka District are aware of the Independent PNPM Program which was established on April 30, 2007. There are three main aspects that are conducted by the Independent PNPM Program which covers the economic, social, and environment sectors. The community is invited to participate in every step of the activities starting from planning, decision making in fund use and management based on each village’s need, and the implementation and monitoring of the activities.


November 2014);

2. http://pnpm-sultra.blogspot.com; and

3. http://www.kolaka.pnpm-sultra.org.

Some village development programs have been implemented by Kolaka government and central government (PNPM Program) or other programs that involve the community.

Independent PNPM was initiated as an umbrella (coordination) for the poverty reduction program which use a community empowerment concept as the operational approach. The programs take the involvement of the community as the executor of the planning, implementation, monitoring, and evaluation process. In the PNPM Program, the role of the village and sub-district government is very important. However, support to the sub-district and villages are currently limited only to PNPM programs. NGOs and donor agencies have not had significant contributions to the strengthening of the sub-districts and villages.

The learning process from the development programs are expected to help in the government preparation in the sub-district and village level as well as the community for this GP project.

http://www.mongabay.co.id/2012/05/09/

http://www.antarasultra.com/berita

http://www.idrap.or.id/idn/environment.php

http://pnpm-sultra.blogspot.com/


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No. Factors



2.5 Other donor funded/NGO on low emission development (NRM RE)

NGO involvement in low-emission development is still lacking. NGO that guide the community to care for the environment is limited, one of them the Nature Lover Foundation (Yascita) implementing a honeybee cultivation program.


November 2014); and

2. Mid-term Development Plan of Kolaka (2014-2019).

The result of the discussion with Bappeda shows that there are currently no collaborations between donor organizations/NGO for low emission development.

2.6 Public participation The participation of the Kolaka community is rated as high and conducive. Community participation starts with development plan meetings in the village, sub-district, and district levels. There are NGOs that play a facilitation roles and supporting community participation in the regional development program (see item No. 2.3)


November 2014); and

2. Mid-term Development Plan of Kolaka (2014-2019).

3. http://www.bappeda.kolakakab.go.id;

4. http://www.kolakakab.go.id; and



Community participate in any government program, whether the program is directly implemented by the government or through other organization such as NGOs. PNPM program is an example and community is highly involved and participated in that program. Community as received the benefit of that program for their economic development and therefore they are very keen to participate.

3. Regulatory Analysis 3.1 Regulatory

framework enabling GP Project Investment

The Kolaka District does not have a regulation for renewable energy management. The most relevant regulation with this issue is objective V in the regional regulation No. 7/2014 to optimize natural resource management and environmental preservation.

For regulation on the management of community forest, village forest and community crop forest, the district still follow regulation from the central government (Regulation from the Ministry of Forestry).


November 2014);

2. Interview with Local Government Secretariat (12-13 November 2014);

3. Mid-term Development Plan of Kolaka (2014-2019);

In general, the Kolaka government does not have a Regional regulations related to renewable energy resources. The existing regulation support natural resource management and environment preservation.






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No. Factors



3.2 Safeguards on human health, livelihood and environment

In relation to human and environmental health, the Kolaka government have District regulations which include:

District Regulation No.5/2005 about Water Polution Management;

District Regulation No.4/2005 about the Implementation of Environmental Impact Assessment;

District Regulation No.7/2007 about Waste Management:

District Regulation No.11/2007 about District Health System;

District Regulation No. 7/2011 about Mother, Newborn Infant, Infant and Toddler Health;

District Regulation No. 12/2007 about Community Health Insurance; and

District Regulation No. 6/2005 about Minimal Health Service Standard.

The Kolaka District has an Environment and Health Agency, but this agency does not have the capacity to authorize environment lincensing.

3 2 1 1. Interview with staff of Bappeda, (12-13 November 2014);


3. District Regulation No.5/2005 about Water Polution Management;

4. District Regulation No.4/2005 about the Implementation of Analysis Instruments for Environment Impact (AMDAL) and Environment Management Effort/Environment Monitoring Effort;

5. District Regulation No.7/2007 about Waste Management:

6. District Regulation No.11/2007 about District Health System;

7. District Regulation No. 7/2011 about Mother, Newborn Infant, Infant and Toddler Health;

8. District Regulation No. 12/2007 about Community Health Insurance; and

9. District Regulation No. 6/2005 about Minimal Service Standard in the Health Sector.

Based on the list of available environmental and human health safeguards, it is concluded that Kolaka district has sufficient safeguards to ensure any program will not potentially causing damage to the environment and human health.


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No. Factors



3.3 PES The initiative and effort for natural resource management to alleviate poverty problems have been implemented by the government and the community itself. For example, the development of several renewable resources such as:

Tamboli Hydroelectricity Power Plant (Samaturu Sub-district); Konaweha Hydroelectricity Power Plant (Uluiwoi Sub-district); 19 November Mini-hydroelectricity Power Plant (19 November Village, Wundulako Sub-district); Ulu Konaweha Village Mini-hydroelectricity Power Plant (Samaturu Sub-district); a planned Mini-hydroelectricity Power Plant in Wondulako and Wolo Sub-districts;

Solar Power Plants in remote villages of every sub-district;


November 2014);



Even though hydroelectric power plants are operational in some locations, the initiative dedicated for Payment for Environment Services program management to date are not present. This is because the Kolaka government has not made a regulation that explains in detail and gives legal strength for environmental service management programs.

3.4 Local government incentives for green investment

The Kolaka District government has not created a specific regulation package for green investment or low-emission development.


November 2014);



4. http://www.kemenperin.go.id/artikel/6297/Pemerintah-Janjikan-Insentif-Khusus-Bagi-Industri-Hijau

There is no policy related to incentives provided by the government for the green investment. Although the District government will support the MCA Green Prosperity as this program will benefit the district in accelerating development program.


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No. Factors



3.5 Local government and community contribution to environment

Programs that have been implemented involve the regional government, community and private sector which include the Gerbangmastra Program (Prosperous Community Development Movement Village Model) proposed in 2005. This program consists of three main aspects: free education operational fee, free medication fee and block grant assistance. Other programs include the development of community-based hydroelectric power plants (micro-hydro) around the river area.


November 2014);



http://korpcitaka.wordpress.com/2008/05/0/05/08/9-

5. perusahaan-pemegang-izin-kp-dihentikan

The result of the interviews shows that the Kolaka government, community, NGOs, and the private sector have contributions in the development of the region. These parties have shown their concerns for sustainable development. In the year 2008-2009, the Kolaka government stopped the activities of nine nickel mining companies that disturbed the community and damaged the environment. However, the government cannot explain in detail the success and failure of their programs.

4. Social and Gender 4.1 Status of gender

mainstreaming issues in the district

The Kolaka District Government has put significant attention towards gender issues. The organization that specifically deals with gender issues is the Office for Family Planning and Women’s Empowerment. This office strives to increase the involvement of women in the development. Programs from the government (Ministry of Women’s Empowerment) that have been implemented in Kolaka are as follows: P2WKSS Integrated Program is one of

the program that try to increase women’s involvement in development. The program strives to develop human resources and natural resource and environment to realize a healthy, prosperous, and happy family. In terms of community development in the village/kelurahans, women are the driving force.


November 2014);



4. http://www.antarasultra.com/print/265466/desa-puundaipa-wakili-kolaka-lomba-p2wkss-tingkat-sultra; and

5. District Regulation No. 2/2012 regarding participation of women in drafting regional policy.

In general, Kolaka does not have a problem related to gender or women’s participation in regional development programs. Women are involved in livelihood activities and in programs that have been initiated by the government or external organizations. In regional development, gender equality always becomes basic requirement in every activity. For example, the Kolaka government has responded to women’s involment in the development process through the presence of Regional Regulation No. 2/2012 about Women Participation in the Formulation of Regional Regulations.

http://korpcitaka.wordpress.com/2008/05/08/9-%20%20perusahaan-pemegang-izin-kp-dihentikan



http://www.antarasultra.com/print/265466/desa-puundaipa-wakili-kolaka-lomba-p2wkss-tingkat-sultra




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No. Factors



4.2 Vulnerable community groups

Vulnerable groups in Kolaka are families that live below the poverty line (disadvantaged families). The number of families in poverty in the year 2012 was about 7,513 families or 9.54% from 78,763 families in the Kolaka region.

There are no cases of suppression or marginalization towards disadvantaged families. The government makes serious effort in impoving the condition of their economy with programs for these families living in poverty. The Kolaka government delegates the main tasks and function related to community empowerment to the Community Empowerment and Village Government Board and Social Services.


November 2014);



4. Central Bureau of Statistics, Kolaka in Figures 2013;

5. http://www.antarasultra.com/print/274065/kemensos-bantu-2914-kk-miskin-di-kolaka

The presence of families living in poverty in Kolaka is a challenge that needs to be targeted for a reduction. In the 2014-2019 Kolaka Regional Mid-Term Development Plan the target for the population living above the poverty line is 85.88% in 2014 and 86.33% in 2015.

The Kolaka District Government participates in the National Program from the Social Ministry for the Prospective Family Program. In the Kolaka area, around 2,914 families will receive aid through the Prospective Family Program.

The commitment of the government to aid these vulnerable community groups is high and will be consistent with the mandate from the MCA-Indonesia GP Intervention Project.

4.3 Customary laws and its effect in district development

In the Kolaka area there are several ethnic groups and customs. The indigenous people of the Kolaka region are the Tolaki and Mekongga ethnics. The Mekongga is one of the sub-ethnic of the Tolaki. However, in the Kolaka region indigenous customary and laws are not or are less applied in general.

The Mekongga community, in terms of preserving and using the environment around them have their own ethnic rules and regulations. Opening up land with burning (shifting agriculture) is still practiced by the Mekongga, but with their own rules and regulations. The Mekongga never excessively clear land and all activities are regulated by the system in the Mekongga tribe, so the preservation of the environment is maintained.


November 2014);


3. http://protomalayans.blogspot.com/2012/11/suku-mekongga-sulawesi.html;

4. http://kotakolaka.blogspot.com/;

5. http://pusaka.or.id/massa-demo-desak-kembalikan-tanah-adat/

In general, local community has regulations related to land management and ownership; natural resource use; women participation; and conflict resolution. There are no regulations (based on local customs) integrated onto the administrative regulation in Kolaka District. The existence of the indigenous or local community and also immigrants in the Kolaka region have the same contribution in the regional development process.

http://protomalayans.blogspot.com/2012/11/suku-mekongga-sulawesi.html

http://protomalayans.blogspot.com/2012/11/suku-mekongga-sulawesi.html

http://kotakolaka.blogspot.com/


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No. Factors



5. Status of Requirements for Compact Conditions 5.1 Approved

RTRW/Spatial Plan Kolaka has a District Spatial Plan that has been approved and used for the planning and development of the district area. This Spatial Plan is enforced through District Regulation (PERDA) Number 16/2012 about Kolaka District Spatial Plan 2012-2032.

3 2 1 1. Regulation No.16/2012 Spatial Plan Kolaka

2012-2032;

2. Spatial Plan Kolaka 2012-2032

The approval and validation of the District Area Spatial Plan will provide a guarantee for the GP program at Kolaka. However, the system to uphold the spatial plan and anticipate potential conflict has to be improved. A Spatial Plan Coordination Body needs to be present and has to become an important body in guaranteeing the implementation of the spatial plan.

5.2 Openness on information related to: data and information to support GP Financing Compact

Kolaka District is very open about their data and information as long as it is used to support regional development programs which have implications on the local economic growth. Some of the data and information can be accessed through the Kolaka District Government website: http://www.kolakakab.go.id; and http://www.bappeda.kolakakab.go.id. On October 14, 2014, the Kolaka District Government received a national award for the best Government Governance Index (1st Place) from 34 districts/cities in Indonesia. This award was given by Partnership, a multi-party organization from UNDP (United Nations Development Program) alongside the Indonesian Home Affair Ministry.


2. http://www.bappeda.kolakakab.go.id;

3. http://www.kolakakab.go.id; and



The Kolaka District Government has provided a website to provide data and information electronically. Every District Government Work Unit or Agency (SKPD) have also given space fore the community to access their data and information.







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5.3 Demonstration to potential value added to district ability to support further intervention from the GP

Kolaka District has abundant natural resources for renewable energy development and sustainable agriculture. The geographic conditions such as the watershed area, forest cover, and land-use offer the potential for renewable energy development, sustainable agriculature, and sustainable ecotourism.




The Kolaka District Government have not set a specific area for the development of the GP program. However, some of the potential opportunities for GP intervention include: development of hydroelectrical renewable energy (hydroelectric power plant; mini-hydroelectric power plant; and micro-hydroelectric power plant); solar power plant; agriculture – plantation (cocoa and clove platations); and development of sustainable ecotourism.

Summary 1. POLITICAL ANALYSIS 6 2. INSTITUTIONAL ANALYSIS 15 3. REGULATORY ANALYSIS 10 4. SOCIALAND GENDER 8 5. STATUS OF REQUIREMENT FOR COMPACT CONDITIONS 9 TOTAL 48

Section 5 Conclusions

5-1

Section 5 Conclusions

Based on the criterias set by the DRA explained in Section 4, Kolaka received 48 from the possible 60

points. The aspect that received a score of 1 was on the donor institutions who participate in the low

emission development and the regional government incentive for green investment. In the Kolaka

area, there is currently no participation from donor institutions and green investment including

renewable energy; ongoing organic farming and sustainable agriculture do not receive special

incentives from the government. This is a potential intervention area for MCA-Indonesia in Kolaka.

The Kolaka regional government has stated its interest in the GPP investment, but to date they have

not set and proposed the type of green investment that is to be developed.

A-1

Appendix A

Maps of Kolaka District

B-1

Appendix B

Photographs of Kolaka Landscape

Rice farming in Kolaka District

Mangrove forest in the coastal area of Kolaka District

B-2

Small river in Kolaka District (Pomalaa Sub-District)

Secondary forest in Kolaka District

C-1

Appendix C

Summary of Field Observation Activities

Date location Activity Information

12 /11/ 2014 Bappeda Kolaka

Coordination, convey the intent and purpose of the data collection activities related to Green Prosperity Project;

Provide extensive details MCA-Indonesian concise in Green Prosperity Project;

Delivering up activities after this DRA; Discussion and data collection

Head of Bappeda is on official trip to Makassar.

Meeting and discussion is delegated to: o Head of Research and Reporting

Division: Pak Zainal Arifin and staff o Head of Socio-culture Division: Pak

Bachtiar and staff

13/11/2014

Regional Secretariat

Coordination and data access related to district regulations (PERDA) natural resource management and renewable energy

Meeting and discussion with Pak Mujahidin

Collecting data and compilation of district regulations relevant with natural resource

Integrated service office

Coordination and access to data / information investment licensing procedures

Meet with Pak Kamidin Collecting data and compilation of

district regulations relevant with natural resource

Bappeda Data collection

District regulations, spatial plans and spatial plan documents;

Long term and medium term development plan, strategic plan of district working units (SKPD)

Kabupaten Kolaka on numbers 2013 Regent’s report

MILLENNIUM CHALLENGE ACCOUNT-INDONESIA GREEN … · Kolaka District is located approximately 165 km...

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