1. Environmental and Social Issues – Port Development &
PPP Pilot Projects in Indonesia
16 June 2014

2. 2
In this session we will:
A. Review the legislation and regulatory framework
o PPP Regulation
o Environmental and Social Study (EIA)
o Land Acquisition and Resettlement Plan (LARAP)
A. Environmental Issues for Port Projects
o Consideration
o Dredged material management
o Marine/Coastal Ecology
o Air Emissions
o Waste Management (General waste, waste water, solid waste)
o Hazardous materials and oil management
o Noise
o Biodiversity & Ecological Resources
o Traffic management
o Visual Impact
o Sustainability and Climate Change
A. Social Issues for Port Projects
o Social & Community Amenities
o Ecosystem Goods/Services
o Public Health and Safety
o Occupational Health and Safety
A. Land Acquisition in the Public Interest
o General Issue from other experiences
o Potential issue for port project
o Mitigation

3. 3
A. Review of Legislation & Regulatory
Overview
A.1 PPP Regulation
– PPP project requiring EIA and LARAP
– PPP Stage of implementation of
Cooperation project
A.2 Environmental and Social Study
– Indonesian Regulation – AMDAL
o Related Regulations
o Activity Required AMDAL
o AMDAL Commencement
o Public Involvement and
Participation
o AMDAL Components
o Environmental Components
Regulation
o AMDAL Process
o Environmental Permit
o AMDAL Permitting Process
– International Framework – ESIA
o Project Requiring International
Funding
o IFC Performance Standard
– Comparison Summary
o ESIA Process vs. AMDAL Process
A.3 Land Acquisition
– National Standard for Land Acquisition
o Related Regulation
o Basis Requirement
o Basis Policy
o Grievance Mechanism
o Flow Activities
o LAP and LARAP
o Parties Involved
– International Standard for Land
Acquisition
o International Standard
Requirements
o Basis Requirement
o Basis Policy
o Grievance Mechanism
o Flow Activities
o LAP and LARAP
o Parties Involved
– Comparison Summary
o Gap between National Standard
and International Standard

4. 4
A.1 PPP Regulation
PPP projects require EIA and LARAP
There are two regulations on PPP that mention the need of Land
Acquisition and Resettlement Plan (LARAP) and Environmental
Impact Assessment (EIA) to support a PPP Project including :
–Bappenas Regulation No. 3 /2012 (Operating Guideline Manual
for Public and Private Partnership in Provision of Infrastructure)
o Environmental Analysis (Article 4 point 3b) and Environmental and
Social Compliance (Article 7 point 4a)
o Land Acquisition and Resettlement Action Plan (Article 4 point 3a)
–Ministry of Transportation Regulation No. PM 83/2010
(Guidelines for Implementing Public Private Partnership in Provision
of Transport Infrastructure)
o Environmental and Social Study (Appendix section IV.A.2.4 and
section C.2.a.4)
EIA and LARAP process will refer to the related regulation which
will be described in the following sections

5. 5
A.1 PPP Regulation
Grey Area in the Regulation - AMDAL
–PPP Regulations require AMDAL and land acquisition documents
as part of the process. However, the starting times are not clear.
–AMDAL regulation stipulates that the AMDAL process cannot
begin until the project is approved and is publically announced
–The AMDAL committee cannot be formed until the project is
approved/announced
–Land acquisition cannot officially commence until the project is
approved/announced.

6. 6
A.1 PPP Regulation
PPP Stage of Implementation of Cooperation Project
Identification and
selection of
Cooperation
Project
Identification and
selection of
Cooperation
Project
Determination of
Priority
Determination of
Priority
Identification and
selection of
Cooperation
Project
Identification and
selection of
Cooperation
Project
Readiness Study of
Cooperation
Project
Readiness Study of
Cooperation
Project
Completion of
Feasibility Pre-
Study
Completion of
Feasibility Pre-
Study
•Procurement Plan
of Business entity
•Implementation of
Procurement of BU
•Preparation of
Signing
Cooperation
Contract
•Procurement Plan
of Business entity
•Implementation of
Procurement of BU
•Preparation of
Signing
Cooperation
Contract
Planning of
Implementation
Management of
Cooperation
Contract
Planning of
Implementation
Management of
Cooperation
Contract
Management of
Implementation of
Cooperation
Contract
Management of
Implementation of
Cooperation
Contract
Output:
List of Project Priority of Documents of
Preliminary Study
Output:
List of Project Priority of Documents of
Preliminary Study
Output:
Obtaining of
Funding; EPC
Contract;
Operational
Contract
Output:
Obtaining of
Funding; EPC
Contract;
Operational
Contract
Output:
Documents of
Feasibility Pre-
Study
Output:
Documents of
Feasibility Pre-
Study
Output:
List of Project Priority of Documents of
Preliminary Study
Output:
List of Project Priority of Documents of
Preliminary Study
Output: Documents
of Cooperation
Contract Documents
of Security &
Regress Contract
Output: Documents
of Cooperation
Contract Documents
of Security &
Regress Contract
Confirmation/Appr
oval of Provision of
Government
Support and/or
Government
Security
Confirmation/Appr
oval of Provision of
Government
Support and/or
Government
Security
Process of Application of Need of Government Support and/or
Government Security
Process of Application of Need of Government Support and/or
Government Security
Process of allocation, clearing, supervision &
monitoring of Provision of Government
Support and/or monitoring & evaluation of
implementation of Security Contract &
Regress Contract
Process of allocation, clearing, supervision &
monitoring of Provision of Government
Support and/or monitoring & evaluation of
implementation of Security Contract &
Regress Contract
ENVIRONMENTAL STUDY / PJPKENVIRONMENTAL STUDY / PJPK ENVIRONMENTAL STUDY /BUENVIRONMENTAL STUDY /BU
PROSPECT OF LAND ACQUISITIONPROSPECT OF LAND ACQUISITION
Output:
Periodical Report
of Implementation
of PK Management
Output:
Periodical Report
of Implementation
of PK Management
Source : Bappenas Regulation 3/2012
2 - 5 Months 6 - 9 Months 10 - 23 Months 9 - 12 Months

7. 7
A.2 Environmental and Social Study
Overview
A.2.1 Indonesian Regulation – AMDAL
o Related Regulations
o Activity Required AMDAL
o AMDAL Commencement
o Public Involvement and Participation
o AMDAL Components
o Environmental Components Regulation
o AMDAL Process
o Environmental Permit
o AMDAL Permitting Process
A.2.2 International Framework – ESIA
o Project Requiring International Funding
o IFC Performance Standard
A.2.3 Comparison Summary
o AMDAL Process vs. ESIA Process

8. 8
A.2.1 Indonesian Regulation - AMDAL
Related Regulations
– Indonesian Government Law No. 32 of 2009 (Protection and
Management of Environment),
– Government Regulation No. 27 of 2012 (Environmental Permit),
– Decree of the Minister of State for the Environment No. 05 of
2012 (The types of Businesses and/or Activities Required to
comply with Environmental Impact Assessment)
– Decree of the Minister of State for the Environment No. 16
of 2012 (Guidelines for Preparation of Environmental
Documents).

9. 9
A.2.1 Indonesian Regulation - AMDAL
Activity requiring AMDAL
Annex 1 to MOE Regulation 5/2012 provides a list of activities
which will require preparation of an AMDAL.
Pursuant to Annex 1 of MOE Regulation 5/2012 a port
development project will require an AMDAL/EIA to be prepared
if it involves:
•Construction of a jetty (sheet pile or open pile) with a length of
more than 200m or size of more than 6,000m2
;
•Construction of a jetty with a massive size;
•Construction of a breakwater with a length of more than
200m;
•Construction of a floating facility with a capacity of more than
10,000 DWT; and
•Reclamation with a minimum reclamation size of 25 hectares,
minimum disposed material of 500,000 m3
, or minimum length
of 50m.

10. 10
A.2.1 Indonesian Regulation - AMDAL
AMDAL Commencement
•Under Government Regulation (GR) No. 27/2012, the AMDAL document
can be assessed by an AMDAL Committee when the location of the port is
in accordance with the spatial plan and master plan of the port
jurisdictional area.
•The AMDAL Committee consists of The AMDAL Committee will be
KLH/environmental agency and other related institutions depending on
the level of project scope consist of (but not limited to) member of
Ministry of Public Works, Ministry of Transportation, Bappeda, Spatial
Planning Agency, Transportation Agency, Public works agency, marine and
fishery agency, experts from university (environmental, social, etc.), NGO,
and impacted community
•The AMDAL can only be compiled by a person/company that has a
certificate of competence of an AMDAL compiler. Under normal
circumstances, the agency that would submit the AMDAL to the
committee is the Port Authority.
•If the project is implemented as a PPP, then the AMDAL should be
prepared by the Government Contracting Agency (GCA) (Penanggung
Jawab Proyek Kerjasama)

11. 11
A.2.1 Indonesian Regulation - AMDAL
Public Involvement and Participation
• Requirements based upon Decree of Bapedal Head no.8
Year 2000
• The Port Authority (who is submitting the AMDAL as the
project proponent) will undertake public announcement
and consultation in line with the regulatory requirements
for engaging all affected stakeholders and the observers
appointed to overview the AMDAL process

12. 12
A.2.1 Indonesian Regulation - AMDAL
Public Involvement and Participation
• The Port Authority will initiate all communications with
the AMDAL Committee, Environmental Agencies, and
relevant local government, institution, NGOs and other
stakeholders associated with the AMDAL activities
• The Port Authority should facilitate and organise public
announcements pertaining to the AMDAL activities
through mass media, arrange and conduct the required
public consultation process with the communities within
the affected Regency, sub districts and any other areas
that are considered as part of the study area

13. 13
A.2.1 Indonesian Regulation - AMDAL
AMDAL Components
Terms of Reference (KA ANDAL)
•Includes: Introduction (Background, Purpose, Study
Implementation), Scooping (Project Description,
Interrelationship the proposed activity with other activity,
Baseline Study, Public Consultation Result, Hypothetical Impact,
Focusing Subject Study) , and Methodology (Data Collection and
Analysis, Important predicted impact method, important
predicted impact method)
•The results of the public announcement and participation are
incorporated into the document
•It is submitted to the regional authority by the AMDAL
appraisal committee.
•It is assessed by a technical team
•Subject to a satisfactory assessment, the committee will
approve the KA ANDAL

14. 14
A.2.1 Indonesian Regulation - AMDAL
AMDAL Components
ANDAL, RKL and RPL
•The ANDAL analyses the impact of the project based
upon the baseline condition and the anticipated project
impacts
•The RKL and RPL provide the mitigation measures and
monitoring requirements for project implementation
•The ANDAL, RKL and RPL are submitted to the regional
authority by the AMDALL appraisal committee
•These parties will coordinate to review the document,
provide comments, and approve the final AMDAL

15. 15
A.2.1 Indonesian Regulation - AMDAL
Environmental Component Regulations
Environmental
Component
Reference
Standard
Concerning
Surface Water Quality Government
Regulation
No.82/2001
Water Quality
Management and
Water Pollution
Control
Air Quality Government
Regulation
No.82/2001
Air Pollution Control
Noise Level Minister of
Environment
Decree 48/ 1996
Noise level
threshold
Vibration Minister of
Environment
Decree No.49/
1996
Vibration level
threshold
Odour Minister of
Environment
Decree No.50/1996
Odour level
threshold
Groundwater Quality Minister of Health
Regulation
No.416/1990
Water Quality
Requirements and
Control

16. 16
A.2.1 Indonesian Regulation - AMDAL
AMDAL Process
• AMDAL is a process
• Consideration at National
Provincial or Regency
Level, depending on the
footprint of the project

17. 17
A.2.1 Indonesian Regulation - AMDAL
Environmental Permit
• The Port Authority of GCA will submit an application for
environmental permit to the mayor or Bupati.
• The application is supplemented with:
– AMDAL documents & letter of feasibility
– Business establishment documents
– Business activity profile
• The environmental permit application will be
publically announced
• The community/stakeholders may comment
• If no changes are required, the permit is issued and it
is announced to the public

18. 18
A.2.1 Indonesian Regulation - AMDAL
AMDAL Permitting Process
• AMDAL generates a
letter of Environmental
Feasibility
• Then follows the
Environmental
Permitting Process

19. 19
A.2.2 International Framework - ESIA
Projects Requiring International Funding
• If international funding is required, this will trigger an
International Environmental and Social Impact
Assessment (ESIA)
• The system to be applied depends on the lender (e.g. IIF,
AusAID, JICA, ABD, IFC etc.)
• IFC Guidelines (EHS Guidelines and Performance
Standards) are usually a good guide to what is required.
• Most follow a convention called the Equator Principles

20. 20
A.2.2 International Framework - ESIA
IFC Performance Standards
• Performance Standard 1: Assessment and Management of
Environmental and Social Risks and Impacts
• Performance Standard 2: Labour and Working Conditions
• Performance Standard 3: Resource Efficiency and Pollution
Prevention
• Performance Standard 4: Community Health, Safety, and
Security
• Performance Standard 5: Land Acquisition and Involuntary
Resettlement
• Performance Standard 6: Biodiversity Conservation and
Sustainable Management of Living Natural Resources
• Performance Standard 7: Indigenous Peoples
• Performance Standard 8: Cultural Heritage
Per IFC’s Policy on Environmental and Social Sustainability (January 2012)

21. 21
A.2.2 International Framework - ESIA
ESIA Process
Assessment
Screening
Scoping
Baseline Studies
Impact Prediction
and Evaluation
Mitigation
Environmental &
Social Action Plan
ESHIA
Public Consultation
Alternatives &
Design Modification
Consultation
Public Consultation
No ESHIA Required
The Environmental, Social and Health
Impact Assessment Process
No Significant
Impacts
Potential Impacts
are expected
Refine/Improve Project Design
Refine/Improve ESAP

22. 22
A.2.2 International Framework - ESIA
ESIA Guidelines
• IFC guidelines consider environmental impacts according
to their Sustainability and EHS Guidelines, there are
three that have relevance for port projects they are:
– Policy on Environmental and Social Sustainability (January
2012)
– Environmental, Health, and Safety General Guidelines (April
2007)
– Environmental, Health and Safety Guidelines for Ports,
Harbors, and Terminals (April 2007)

23. 23
A.2.3 Comparison Summary
ESIA Process vs. AMDAL Process
• Very Similar processes
• Environmental elements very close, however ESIA also
addresses:
– Climate change and sustainability
– Visual impact
– May involve stricter maximum allowable limits
• Social Elements Differ (especially with respect to Land
Acquisition)
– Wider scope of social survey for ESIA
– AMDAL considers the Indonesian legal framework for land
acquisition (Law No. 2, 2012)
– IFC extends to the “informal” loss of income
– IFC extends to squatters
– Big emphasis on informed consent, community consultation and
restoration of livelihoods

24. 24
A.3 Land Acquisition
Overview
A.3.1 National Standard for Land Acquisition
o Related Regulation
o Basis Requirement
o Basis Policy
o Grievance Mechanism
o Flow Activities
o LAP and LARAP
o Parties Involved
A.3.2 International Standard for Land Acquisition
o International Standard Requirements
o Basis Requirement
o Basis Policy
o Grievance Mechanism
o Flow Activities
o LAP and LARAP
o Parties Involved
A.3.3 Comparison Summary
o Gap between National Standard and International Standard

25. 25
A.3.1 National Standard for Land Acquisition
Related Regulations
– UUPA 5/1960
– Regulation of Ministry of Home Affairs No. 15/1975 (Provisions
Regarding of Land Acquisition Procedures) (private and government)
– Indonesian Law No. 2/2012 (Land Procurement for Development in
the public interest) (commercial and public interest) (example port
development on Article 10 d)
– Presidential Regulation 71/2012 (Land Acquisition Implementation
for development of public interest) (commercial and public interest)
Note
– Presidential Decree 55/1993 (public interest only)
– Presidential Regulation No. 36/2005 amended by Presidential
Regulation No. 65/2006 (commercial and public interest)

26. 26
A.3.1 National Standard for Land Acquisition
Basis Requirement
Law No 2/2012 and PR 71/2012 Requirement:
•National, Provincial and Regional Spatial Planning
•Developmental Priorities
•Socio – Economic Survey
•Location Feasibility
•Cost Analysis and Development Benefit
•Estimation of Land Value
•Environmental and social impact
•Other Study

27. 27
A.3.1 National Standard for Land Acquisition
Basis Policy - Involuntary Resettlement
Involuntary Resettlement Regulated Under:
• Law No 2/2012 – umbrella regulation of land acquisition
• Presidential Regulation No. 71/2012
• Head of BPN Regulation No. 5/2012 – details land acquisition
activities
• MOPA Regulation No. 72/2012 – budget and financial
• MOF Regulation No. 13/2013 – budget and financial

28. 28
A.3.1 National Standard for Land Acquisition
Basis Policy - Entitlement Matrix
* Asset Loss is the property that will be impacted by the project (Act No. 2/2012 and PR No.71/2012)
** Eligible parties is the project affected people including land owner, renter, employee, encroacher,
etc.(PR No. 71/2012)
*** Entitlement is having a right to something (Act No. 2/2012 and PR No.71/2012)
Asset Loss* Eligible Parties** Entitlement***
Land Land Right holder Cash Payment
Building Structure Right to Manage Land to Land
Tree & Crops Guardian Resettlement
Object related to land Etc. Shareholding
National Regulation and Policy
Socio Economy Survey
(Primary and Secondary)
Ground Check
(Site Visit and Observation)
Entitlement Matrix

29. 29
A.3.1 National Standard for Land Acquisition
Basis Policy - Entitlement Matrix
Type of Loss base on Act No. 2/2012 and PR No.71/2012
•Land
•Space above ground and underground
•Structure
•Tree and crops
•Objects related to land
•Another Loss can be assessed
Eligibility Parties base on PR No. 71/2012:
•Land Rights Holders
•Right to Manage Holders
•Guardian (nadzir) for waqf land
•Owner of formerly traditionally owned land
•Customary law community
•Party who possesses state land with good faith
•Basic holder of land possession
•Owner of structures, plants, and other objects related to land.
Entitlement base on Act No. 2/2012 and PR No.71/2012:
•Cash payment
•land to land
•resettlement
•shareholding
•Another clausal

30. 30
A.3.1 National Standard for Land Acquisition
Activities Flow

31. 31
A.3.1 National Standard for Land Acquisition
Grievance Mechanism
• No specific Grievance Mechanism required legally
• As best practice many Land Acquisition processes of Government
projects have included a grievance mechanism
• The mechanism allows better communication between the
government and the affected parties
• Provides a formal method for addressing issues

32. 32
A.3.1 National Standard for Land Acquisition
LAP and LARAP
Land Acquisition Plan:
•Purpose and objectives of development plan
•Suitability with the Spatial Planning
•Lay of the land/Project Location
•Requirement of Land Area
•General description of land status
•Estimation of implementation of land acquisition
•Estimated of time period of development implementation
•Estimation of land value
•Budget Plan

33. 33
A.3.1 National Standard for Land Acquisition
Parties Involved (4 Stages)
Law No 2/2012 and PR 71/2012
Planning is conducted by the agency that requires the land, with assistance
from the relevant technical agencies or they can be assisted by a designated
professional body.
Preparation is conducted by the Governor. The Preparation Team will be
established by the Governor and will consist of:
•the mayor (or regent) [bupati or walikota],
•SKPD (regional work units),
•the agency that requires land, and
•other relevant agencies.
In the event of objections from the public, the Governor will establish an
Objection Assessment Team consisting of:
•Provincial Secretary or administration official appointed as Chairman,
•Head of BPN Regional Office,
•the government agency in the local development planning,
•the head of Office of the Ministry of Law and Human Rights,
•the Mayor or appointed officials, and
•academics.

34. 34
A.3.1 National Standard for Land Acquisition
Parties Involved
Law No 2/2012 and PR 71/2012
Implementation Team consisting of at least:
•external valuation team;
•officials in charge of Land Acquisition affairs at BPN Regional
Office,
•head of local land agency,
•provincial officials unit in charge of land affairs,
•district head, and
•headman and/or village head
Submission of results is implemented by BPN and submitted to the
agencies that require land.

35. 35
A.3.2 International Standard for Land Acquisition
International Standard Requirements
• Why follow international standards?
• Projects that require international funding
• Such as: IIF, World Bank, JICA, ADB, etc.
• What are international standards?
• Equator Principles III
• World Bank Social Safeguard - OP 4.12 - Involuntary
Resettlement
• Specific with IFC Performance Standard 5 : Land
Acquisition and Involuntary Resettlement

36. 36
A.3.2 International Standard for Land Acquisition
Basic Requirement
IFC PS 5 Planning Requirement
•Final Project Design
•Compensation and Benefit Policy for Displaced Persons
•Community Engagement
•Grievance Mechanism
•Resettlement and Livelihood Restoration Planning and
Implementation
•Plan for Displacement
•Maintain Private Sector Responsibilities Under Government-
Managed Resettlement

37. 37
A.3.2 International Standard for Land Acquisition
Activities Flow

38. 38
A.3.2 International Standard for Land Acquisition
Basic Policy - Voluntary and Involuntary Resettlement
• Voluntary resettlement is a willing buyer-willing seller situation,
in which the an agreed upon outcome is established.
• Involuntary resettlement may be required for projects in the
public interest, or sometimes for private development.
• Both voluntary and involuntary resettlement should follow
national laws at minimum.
• Involuntary resettlement under international standards may
follow IFC or World Bank Guidelines (IFC Performance
Standard 5 or World Bank Social Safeguard - OP 4.12 -
Involuntary Resettlement, which provides more detail)

39. 39
A.3.2 International Standard for Land Acquisition
Basis Policy - Entitlement Matrix
*) Asset Loss is the property that will be impacted by the project
**) Eligible parties is the project affected people including land owner, renter, employee, encroacher,
etc.
***) Entitlement is having a right to something
Asset Loss* Eligible Parties** Entitlement***
Land Land Right holder Cash Payment
Building Structure Right to Manage Land to Land
Tree & Crops Guardian Resettlement
Object related to land Etc. Shareholding
International Regulation and Policy (IFC – PS 5)
Socio Economy Survey
(Primary and Secondary)
Ground Check
(Site Visit and Observation)
Entitlement Matrix

40. 40
A.3.2 International Standard for Land Acquisition
Basis Policy – IFC PS 5 - Entitlement Matrix
Type of Loss
•Physical Displacement
•Economic Displacement
•Including temporary or permanent, and commercial area
Entitlement base
•Cash compensation
•Replacement land
•Replacement Cost
•Resettlement
•No depreciation of structure
•the entitlements of displaced persons provided under applicable
national laws and regulations
•etc.
Eligibility Parties
•Owner of asset
•Employers/Worker
•Squatter, Illegal settlement
•All parties that identify as Project Affected Peoples (such as:
Vulnerable peoples)

41. 41
A.3.2 International Standard for Land Acquisition
Grievance Mechanism
IFC PS 5:
•Establish a grievance Mechanism
•Receive and address specific concerns about compensation and relocation
raised by displaced persons or members of host communities in a timely
fashion, including a recourse mechanism designed to resolve disputes in an
impartial manner.
•Timely redress of grievances through an effective and transparent grievance
mechanism is vital to the satisfactory implementation of resettlement and to
completion of the project on schedule.
•Affected households and communities should be informed, as part of the
consultation effort, of the process for registering grievances, should have
access to this grievance mechanism, and know the possibilities of legal
recourse available. It should be readily accessible to all and provide for fair,
transparent and timely redress of grievances and special accommodations for
women and vulnerable and marginalized groups to voice their concerns or
make complaints.

42. 42
A.3.2 International Standard for Land Acquisition
LARAP - Integrated with PCDP
IFC PS 5, including:
•Land Acquisition and Resettlement Action Plan (LARAP) – to
document the plan, policy, affected parties, and results of land
acquisition
•The LARAP should include a Resettlement and Livelihood
Restoration Planning and Implementation
•Create a Public Consultation and Disclosure Plan to document the
plan and implementation of public interaction and consultation
(note: The consultation process should ensure that women’s perspectives and other
minority groups are obtained and their interests factored into all aspects of resettlement
planning and implementation)

43. 43
A.3.2 International Standard for Land Acquisition
LARAP – Outline IFC PS 5
Outline of a Land Acquisition and Resettlement Action Plan
•Description of the project
•Potential impacts
•Objectives and studies undertaken
•Regulatory framework
•Institutional framework
•Stakeholder engagement
•Socioeconomic characteristics
•Eligibility
•Valuation of and compensation for losses
•Magnitude of displacement
•Entitlement framework
•Livelihood restoration measures
•Resettlement sites
•Housing, infrastructure, and social services
•Grievance procedures
•Organizational responsibilities
•Implementation schedule
•Costs and budget
•Monitoring, evaluation and reporting

44. 44
A.3.2 International Standard for Land Acquisition
Parties Involved
IFC PS 5
Requires a Project to Adopt the Local Standard, including:
•The organizational framework for implementing (identification of
agencies responsible for delivery of resettlement measures and provision of
services);
•arrangements to ensure appropriate coordination between agencies
and jurisdictions involved in implementation;
•any measures (including technical assistance) needed to strengthen
the implementing agencies' capacity to design and carry out
resettlement activities;
•provisions for the transfer of responsibilities to local authorities to
manage facilities and services provided under the project

45. 45
A.3.3 Comparison Summary
Gaps between National and International Standard
National Standard International Standard
No consideration for vulnerable
peoples
Consideration for vulnerable
peoples
No compensation to squatters,
illegal settlements
Consideration of squatters,
illegal settlements
Some entitlements are in a grey
area
Clear entitlement structure
No clear requirement for
grievance process
Required grievance mechanism
Compensation for physical loss Compensation for physical and
economic loss
No consideration for indirectly
affected parties
Consideration for indirectly
affected parties

46. 46
B. Environmental Issues for Port Projects
Considerations
• Primary Considerations
– Dredged materials management
– Marine/Coastal Ecology
– Air emissions
– Waste Management (General waste, waste water, solid waste)
– Hazardous materials and oil management
– Noise
– Biodiversity & Ecological Resources
• Other Considerations
– Traffic management
– Visual impact
– Sustainability and climate change

47. 47
B. Environmental Issues for Port Projects
Dredged Material Management
Construction
–Soil contamination
–Geotechnical issue
–Possibility of soil erosion
–Increased sediment suspension (turbidity) in marine water due to
the dispersal of dredged sediment
–Decreasing the water quality by increasing TSS and turbidity
–Possible chemical disturbance to marine and coastal ecology
–Habitat removal/degradation
–Sea water quality decline
Mitigation
–Screening of dredge material
–Appropriate disposal of dredge material
–Careful selection of dredging method
–Reducing the dispersion of contaminants by containment

48. 48
B. Environmental Issues for Port Projects
Marine/Coastal Ecology
Construction
–Possible chemical disturbance to marine and coastal ecology
–Alternations of marine and coastal habitat caused by changes in
sediment structure
–Burial of benthic community caused by disposal of sediment
–Decreasing light transmission to light-depended organism
–Regression of sea grass and meadows
–Disturbance of birds and marine animal
–Reduced fishery resources and degraded fishery quality for
recreational and food gathering activities
–Worsening of water pollution
Operation
–Oil and mixtures leakages from ships damaging fishery resources,
marine biota and habitat
–Biodegradation of oil in water reducing dissolved oxygen needed by
the biota
–Impacted fishery resources by contamination of chemicals from
leakages

49. 49
B. Environmental Issues for Port Projects
Marine/Coastal Ecology
Mitigation
–Construction : Appropriate planning of construction work,
Reducing turbidity by using silt/turbidity curtains, Habitat
enhancement or restoration, Environmental monitoring, Periodic
inspection of construction activities by enforcement authorities or
agencies, careful survey of ecological characteristic and restricting
corridors of work.
–Operation : habitat enhancement and restoration works such as
creation of sea grass habitat for fishery resources recovery,
expanding saltmarsh habitat and intertidal sand and mud flats for
prey species, measuring in environmental management related to
oil spoil and leakages, dust control, water quality protection and
noise reduction measures.

50. 50
B. Environmental Issues for Port Projects
Air Emissions
Construction
–Dust particulates generation from construction activities including
dredge/fill activity, transportation, equipment, grading/clearing,
and onshore activity.
–Exhaust emission from fuel consumption of diesel-fueled heavy
equipment with emit toxic and some carcinogenic,
Operation
–Emissions from ships, cargo handling equipment, port-related
truck trips
–Exhaust emission from construction vehicle, plant, machinery and
vessels.
Mitigation
–Construction - Minimize Dust Emissions, Exhaust Emission, and
Volatile emission
–Operation - Efficient off-loading operations and regulated limits
on idling time

51. 51
B. Environmental Issues for Port Projects
Air Emissions
Threshold Limit
Parameters Averaging Period
Indonesian Standards* IFC**
units concentration units concentration
Ozone 1 hour μg/Nm3
235
8-hour daily
maximum
- - μg/m3 100
1 year μg/Nm3
50
Carbon monoxide (CO) 1 hour μg/Nm3
30,000
24 hour μg/Nm3
10,000
Nitrogen Dioxide (NO2) 1 hour μg/Nm3
400 μg/m3 200
24 hour μg/Nm3
150
1 year μg/Nm3
100 μg/m3 40
Sulfur Dioxide (SO2) 10 minutes - μg/m3 500
1 hour μg/Nm3
900
24 hour μg/Nm3
365 μg/m3 20
1 year μg/Nm3
60
Total Suspended Particles (TSP) 24 hour μg/Nm3
230
1 year μg/Nm3
90
PM10 24 hour μg/Nm3
150 μg/m3 50
1 year - - μg/m3 20
PM2.5 24 hour μg/Nm3
65 μg/m3 25
1 year μg/Nm3
15 μg/m3 10
Lead (Pb) 24 hour μg/Nm3
2
1 year μg/Nm3
1
Source :
*) Government Regulation No. 41/1999 concerning on Air Pollution Control
**) IFC EHS General Guidelines

52. 52
B. Environmental Issues for Port Projects
Waste Management (general, waste water, solid waste)
Construction
–Waste from demolition, clearing and roadway construction
–Hazardous, solid, and waste water during construction
Operation
–Inert solid waste from cargo packaging and administrative office
–Potentially hazardous waste associated with vehicle maintenance
operation (lubricating oils and engine degreasing solvents)
–Effluent and solid waste of visiting ships
Mitigation
-Construction, re-used dredged material, recycled waste concrete,
proper and categorized waste storage, keep clean area,
institutionalized hazardous waste SOP.
-Operation, providing adequate effluents and waste management,
prohibited marine discharge of solid and hazardous, appropriate
storage of waste water from large ships by providing waste water
treatment facilities connected to municipal waste water treatment

53. 53
B. Environmental Issues for Port Projects
Waste Management (general, waste water, solid waste)
Threshold limit – marine water quality for port area
No Parameter Unit Seawater Quality Standard
Physical
1 Clarity m >3
2 Odor - natural
3 Total Suspended Solids (TSS) mg/L 80
4 Waste - -
5 Temperature °C Natural
6 Oil layer - -
Chemical
1 pH 6.5 - 8.5
2 Salinity o
/oo Natural
3 NH3-N mg/L 0.3
4 Sulphide (H2S) mg/L 0.03
5 Total Hydrocarbon mg/L 1
6 Total Phenol mg/L 0.002
7 Total PCB (polychlor biphenil) µg/L 0.01
8 Detergent
mg/L
MBAS
1
9 Oil and Grease mg/L 5
10 TBT (tri butil tin) µg/L 0.01
Dissolved Metals
1 Mercury mg/L 0.003
2 Cadmium (Cd) mg/L 0.01
3 Copper (Cu) mg/L 0.05
4 Lead (Pb) mg/L 0.05
5 Zinc (Zn) mg/L 0.1
Microbiology
1 Total coliform
MPN/100
ml
1000
Source : MoE Decree 51 of 2004 (Appendix I – for Marine Port Area)

54. 54
B. Environmental Issues for Port Projects
Hazardous materials and oil management
Construction
–Hazardous liquids (fuels and chemicals)
–Hazardous waste (contaminated soil, waste fuel and lubricants, oil
filters and batteries)
Operation
–Hazardous liquids (fuels and chemicals)
–Residual paints and solvents in containers.
Mitigation
-Construction, hazardous liquids (fuels and chemicals) stored in
accordance with a dangerous goods management plan in secure
bunded compounds during construction, Storage-treatment and
transportation of contaminated soils, and Institutionalized
hazardous waste SOPs such as proper and covered storage.
-Operation, Institutionalized hazardous waste SOPs such as proper
and covered storage

55. 55
B. Environmental Issues for Port Projects
Noise
Construction
–Noise from equipment and mobilization for land reclamation activity
and construction of access road.
Operation
–Noise and low-frequency vibration from heavier traffic volumes and
increased truck traffic.
Mitigation
–Construction, regularly fitted appropriate muffler, maintained, and
operated efficiently for all machinery and vehicles.
–Operation, intelligent loading for trucks and prohibiting idling of
vehicles from nearby receptors.

56. 56
B. Environmental Issues for Port Projects
Noise
Threshold Limit
Receptor
Indonesian
Standard*
IFC**
Day/night Day night
Work Space
Houses and Residential Areas 55day/45(night) 55 45
Trade and Services 70 70
Offices and Trade 65 70
Green Open Space 50
Industry 70 70
Government and Public Facilities 60 55 45
Recreation 70
Environment of Activity
Hospitals 55
Schools 55 55 45
Religious Buildings 55 55 45
Institutional 55 45
Source :
*) MoE Decree No. 481996 concerning on Noise Level Standard
**) IFC EHS General Guidelines – Table 1.7 Noise

57. 57
B. Environmental Issues for Port Projects
Biodiversity & Ecological Resources
Construction & Operation
–Terrestrial fauna habitat destruction
–Polluted run off
–Polluted roadway
–Loss of estuarine and beach habitat
–Local ecology due to dust and exhaust emissions from the
construction vehicles and machinery
Mitigation
–Limited Vegetation Clearance
–Rehabilitate the destroyed mangrove forests
–Consider native plant species for landscaping works
–Protect remaining mangroves area surrounding project
–Appropriate waste storage to limit proliferation of pests.

58. 58
B. Environmental Issues for Port Projects
Traffic Management
Construction
-Pavement damage during construction causing road safety issues
-Traffic jams along the transport routes affecting local business and
communities
-Increase local traffic increasing noise levels
Operation
-Congestion, increased truck movement to and from the port along
local roads could result in congestion and nuisance.
Mitigation
-Construction, road servicing and maintenance, traffic management
plan and identified heavy vehicles routes.
-Operation, implement a traffic management plan and traffic
calming measure.

59. 59
B. Environmental Issues for Port Projects
Visual Impact
Construction
–Extensive activity on the dock during construction
–Night light spill from the project site and during construction at night
Operation
–The existence of the port and vessels docking for loading and
unloading might create a visual impact to neighbors.
–Lighting for port operation at night
–Unwanted visible emission from trucks, ships, and cargo
Mitigation
–Green belt on sore to reduce any unpleasant view
–Storage located away from road or residences
–Reducing the use of excess lighting in port areas nearby sensitive
viewer Requiring down lighting instead of up lighting
–Use color and materials consistent with existing visual environment
and minimize potential for reflection

60. 60
B. Environmental Issues for Port Projects
Sustainability and Climate Change
Construction
-Cumulative GHG emissions from work equipment and vehicles
during construction
-Changing ecosystems and loss of terrestrial and aquatic habitats
Operation
-Emission from port operation (vessels, harbor ships, cargo
handling equipment and cargo trucks) and Emission from berths,
building, port lighting and terrestrial/cargo vehicles.
-Untreated emission to air, discharge to water, release to soil and
marine sediments from industrial activities, noise generation, waste
generation and disposal, loss and degradation or terrestrial and
aquatic habitats.

61. 61
B. Environmental Issues for Port Projects
Sustainability and Climate Change
Mitigation
-Construction, emission control using air pollution treatment
methods, ship/truck idling reduction strategies and energy-efficient
and less polluting, lower emission work equipment and vehicles,
and eco-efficient building design and energy efficient lighting
-Operation, Incentive for more fuel-efficient vessel and vehicles ,
cleaner fuel regulation, alternative green power, air emission
reduction strategy, green port initiative project, and tree planting

62. 62
C. Social Issues for Port Projects
Introduction
- Social and Community Amenities
- Cultural Heritage and Indigenous Peoples
- Ecosystem Goods/Services
- Public Health and Safety
- Occupational Health and Safety

63. 63
C. Social Issues for Port Projects
Social & Community Amenities
Construction
-Reducing usage of local community amenities
-Reducing access to community amenities
-Decreasing the number of tourists
-Creating nuisance to scenic views of the harbor
-Loss of recreational options for nearby residents
Operation
-Noise, dust generation and exhaust emissions from vehicles in the
port area, connecting road or supporting facilities
-Concentration of pollutants causing health impacts
-Less attractive visually depending on views cape
Mitigation
-Construction, air pollution, noise, traffic calming measures and visual
amenity
-Operation, ensuring access to public amenities for the lifetime of port
operation, tree planting along the access road and to block unpleasant
views, and the view scape from existing amenities

64. 64
C. Social Issues for Port Projects
Cultural Heritage and Indigenous People
Construction
-Disturbance of ethnographic and archaeologically heritage sites
Mitigation
-Avoid the project activity near ethnographic and archaeologically
heritage sites (King Tallo’s burial site)
-Prohibited entry into King Tallo’s Burial site for unauthorized
persons
-Promptly report if any other heritage sites discovered in the
vicinity of operations
-Appropriate management and protective measures for heritage
sites (King Tallo’s Burial site) including fencing, signage, salvage,
and scientific studies
-Implementation of a Heritage Management Plan

65. 65
C. Social Issues for Port Projects
Ecosystem Goods/Services
Construction
-Disturbance of coastal ecosystem influencing health of marine
and terrestrial environments.
-Impacted marine organisms and marine habitats
Operation
-Ecosystem services impacted by unsustainable practices causing
emissions from sea and land transportation, improper waste
management, and/or leakage of chemical substances.
Mitigation
-Waste from construction disposed properly
-Restricted sea disposal
-Identified and conserved important area for biodiversity

66. 66
C. Social Issues for Port Projects
Public Health and Safety
Construction
-Increased public health risk caused by emission of particulates from
vegetation clearing, earthworks and traffic movement and improper
wastewater and waste management.
-Increased respiratory health disease due to dust emissions during
construction
-Increased mosquito-borne disease (malaria and dengue fever) due to
ponded area
-Traffic hazards due to increased traffic and mobilization of equipment
Operation
-Incorrect handling of cargo containing dangerous goods (flammable,
explosive, toxic, pathogenic or corrosive materials)
-Indirect risk such as consumption of contaminated fishes and plants
associated with port activities such as spillage or leakage of oil and
other chemical substance
-Increase of respiratory health diseases to nearby community and
sensitive receptor caused by traffic congestion, cargo handling and
movement, and ships emissions.

67. 67
C. Social Issues for Port Projects
Public Health and Safety
Mitigation
-Construction: Reducing dust emissions, mosquito control
measures implementation, proper solid waste management,
training and awareness program to employers and contractors
before the project commence and periodically during construction
works, educating project personnel and contractors regarding the
importance of public health and safety, providing public health
facility for community and employee, preventing the contagious
disease through employees.
-Operation: Dust control and air quality monitoring SOPs, periodic
health risk assessments taken to identify the level of impact during
port operations, implementation and monitoring of hazardous
cargo operational procedures, and developing a proper health
safety and emergency plan to every possible impact in cooperated
to every day port operations activity

68. 68
C. Social Issues for Port Projects
Occupational Health and Safety
Construction
-Potential for vehicle collisions
-Machine-related injuries or accident.
-Hearing loss due to hazardous levels of noise and vibration in
working environment
-General health damaging to the liver, kidney, reproduction,
nervous system, respiratory disturbances and cancer came from
spills or leaks of solvent (chemical hazards)
-Working in high temperature environment for a long period,
working with electricity, and worked accident such as falls from
height

69. 69
C. Social Issues for Port Projects
Occupational Health and Safety
Operation
-Noise-related disturbance (from engine and transportation
equipment) affecting workers within vicinity of the sources.
-Fatigue affecting workers health safety and overall working
performance
-Workers’ health and safety exposure to dangerous goods and
hazardous substances through transport and cargo handling
Mitigation
-Preserving worker’s health and working capacity
-Improving the working environment
-HSE Plan

70. 70
D. Land Acquisition Issues in Public
Interest
Overview
• General Issue from other experiences
• Potential issue for port project
• Mitigation

71. 71
D. Land Acquisition Issues in Public
Interest
General Issue from other experiences• Socio – economic issues
• Environmental issues
• Vulnerable People
• Evidence of land ownership
• Land ownership and Squatters and illegal settlement
• Asset loss price
• Time of implementation / delay
• Negotiations
• Broker and Provocateur
• Objection from community and Project Affected Peoples

72. 72
D. Land Acquisition Issues in Public
Interest
Potential issue for port project
• Commercial area
• Relocation of Public facilities
• Loss of land
• Loss of settlement
• Loss of livelihood/income
• Public Road / access
• Utilize marine resources and existing conditions of PT
Industri Kapal Indonesia (IKI)
• Expectation of people who live around the port
construction

73. 73
D. Land Acquisition Issues in Public
Interest
Mitigation
• Conduct Socio economic census as baseline for LARAP
document development
• Measuring settlement property right status
• Livelihood
• Community Income
• Family members
• Area
• Plantation or Livestock
• Public facility or cultural heritage facility
• Community positive or negative perception of the proposed
project impact
• Develop recommendation based on the baseline in the LARAP
document