summary environmental impact assessment · these studies were part of the feasibility study...

ASIAN DEVELOPMENT BANK

SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

OF THE

P.T. BANJARMASIN AGROJAYA MANDIRI PROJECT

IN

INDONESIA

June 1996

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CURRENCY EQUIVALENTS(as of March 1995)

Currency Unit - Rupiah (Rp)Rp1.00 - $0.000432$1.00 - Rp2,313.00

ABBREVIATIONS

BODCOCODCO2dBADOFIRRH2SNH3NOXPTBAMSBKSDA

SCUSO2SOXTDSTOMTSS

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------

Biochemical Oxygen DemandCarbon MonoxideChemical Oxygen DemandCarbon DioxideDecibel AcousticDissolved OxygenFinancial Internal Rate of ReturnHydrogen SulfideAmmoniaNitrogen OxidesPT Banjarmasin Agrojaya MandiriSub Balai Kelestarian Sumber Daya Alam(Subregrional Officer for the Conservation ofNatural Resources)Soil Chart UnitSulfur DioxideSulfur OxidesTotal Dissolved SolidsTotal Organic MatterTotal Suspended Solids

WEIGHTS AND MEASURES

OC - degree Celsiuscm - centimeterha - hectarekW - kilowattm - metermg/l - milligram per litermm - millimeterph - acidity measurement unitppm - part per milliontpa - ton per annum

NOTE

In this Report, the symbol “$” refers to US dollars.

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CONTENTS

Page

A. Introduction 1

B. Description of the Project 2

C. Description of the Environment 4

D. Anticipated Environmental Impacts and Mitigation Measures 7

E. Development Alternatives 11

F. Cost Benefit Analysis 12

G. Institutional Requirements and Environmental Monitoring Program 13

H. Public Involvement 14

I. Conclusions 15

APPENDIXES 16

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A. Introduction

1. PT Banjarmasin Agrojaya Mandiri (PTBAM) Hybrid Coconut Project is aproposed agro-industry project, consisting of a hybrid coconut plantation and the processingfacilities in Batulicin, South Kalimantan Province, Indonesia. This summary environmentalimpact assessment presents the main result of the studies of the Project’s potential effects ofthe Project on the natural and human resources of three sub-districts of Kotabaru District:Kusan Hulu, Kusan Hilir, and Batulicin.

2. These studies were part of the feasibility study undertaken by local consultants.A detailed feasibility study on the proposed hybrid coconut Project was commissioned byPTBAM in 1993. In conjunction with this feasibility study, in 1994 the World Trade CenterJakarta prepared the market study on the oleochemical products. These studies confirmed thetechnical feasibility and financial viability of the proposed project and that markets exist for theproposed products.

3. The environmental impact assessment was prepared in accordance with theEnvironmental Impact Assessment Guidelines of the Government of Indonesia.

4. The following documents constitute the environmental documentation for theProject, and have been taken into account in the preparation of this summary environmentalimpact assessment:

(i) The Land Survey Report by the Ministry of Forestry (June 1992);

(ii) The Feasibility Study report (April 1994);

(iii) The Project Proposal (April 1995); and

(iv) The Environmental Impact Analysis (July 1995), which presents the detailedresults of the environmental and social studies carried out in 1994; this consistsof the Environmental Impact Analysis (ANDAL), Environmental ManagementPlan, and Environmental Monitoring Plan, which were approved by the Ministry ofAgriculture in August 1995.

B. Description of the Project

5. The Project area is on the southeastern side of South Kalimantan Provincefacing the Pulau Laut Strait (see Appendix 1). Batulicin subdistrict is relatively easy to reach,either from Banjarmasin or other big cities in the area. Batulicin is about 260 kilometers (km)from Banjarmasin, and 4-5 hours by road, and Kotabaru is about 60 km by sea from Batulicin.

6. The Project permit and foreign investment facility approvals were issued by theState Minister of Investment/Chairman of Investment Coordinating Board1. The total areareserved for the Project is approximately 18,920 hectares (ha). Of this, 18,000 ha are to bedeveloped into a hybrid coconut plantation. The remaining 920 ha are allocated for thesupporting facilities and conservation areas.

1 No. 363/I/PMA/1994, dated 21 November 1994.

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7. The Project will allocate sufficient land for housing for staff, employees, andworkers, and for other social facilities such as public health centers, mosques, safety and fireguard stations, schools, shops, and sports areas.

8. The Project's plantation program will be developed in phases. At present, 4,127ha have been planted, and plantation development will be completed in 1999. About 3,000 hawill be planted in 1996, 3,500 ha in 1997, 4,000 ha in 1998, and 3,373 ha in 1999.

9. PTBAM will also establish integrated coconut primary and by-productsprocessing facilities in the area. The primary processing facilities – for oleochemicals, andcrude coconut oil - will be established even before the plantation produces coconut. Part of thefeedstock for the processing plants will come from purchases in the area. Raw material supplyin the area is sufficient to meet the requirements of the plants. By-product processing facilities –coconut shell charcoal, activated carbon, rubberized coir fiber, coir fiber matting, and nata decoco factories – will be established when coconuts from the plantation become available.

10. The Project will consist of the following components :

(i) a hybrid coconut plantation: This will include land acquisition, land preparation, and establishment of the plantation.

(ii) processing facilities:

(a) a crude coconut oil mill (output capacity of 96,000 metric tonsper annum [tpa]): The coconut meat will be washed with treatedwater and dried; and then cut into small pieces, placed in thefluidizing tank, and mixed with oil recycled from the centrifugemachine. The disintegrators then grind the meat finely. The watercontent is removed from the meat by a vacuum evaporator. Themeat is then placed in the conditioner and heated to extract theoil. Crude coconut oil will be used as feedstock for theoleochemical plant and as edible cooking oil, with coconut mealas by-product.

(b) an oleochemical plant (input capacity of 66,000 tpa): This plantwill process the crude coconut oil as raw material into fatty acidsand glycerine and/or fatty alcohols. A high pressure steamgenerator will separate the oil into sweet water and crude fattyacids. The sweet water will be distilled and bleached, producingglycerine. Color and odor are removed from the main distillate byabsorption using activated carbon in a fixed bed bleacher toachieve pharmaceutical quality glycerine. Then the crude fattyacids are fractionated into single chain fatty acids. The fatty acidscould be processed further into fatty alcohols.

(c) an edible cooking oil plant (input capacity of 30,000 tpa):Around 30,000 tons of crude coconut oil will be processed intoedible cooking oil. The crude coconut oil will be heated and thenscreened by weight; the upper portion (the cooking oil) will be

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taken, and the lower portion will be returned to the cookingchamber for further processing.

(d) a coir fiber matting facility (output capacity of 6,000 tpa): Thecoconut husk will be cleaned by soaking it in water for severaldays, and the fiber pounded to facilitate its separation from thesponge. The fiber is then combed to remove the soft fiber.

(e) a rubberized coir fiber facility (output capacity of 3,600 tpa):Viscous latex will be used to make rubberized coir fiber, which hasbroad applications, e.g., foam for mattresses, vehicle seats,furniture, air filters, heat insulators, soundproofing, and packagingmaterial.

(f) a coconut shell charcoal facility (output capacity of 1,800 tpa):Coconut shells are burned in a temperature-controlled furnace orany equipment of the same type. It is then mixed with glue andclay at a proportion of 9:1:1, stirred, and moulded then finallydried at 60oC. The charcoal are usually granular.

(g) an activated carbon facility (output capacity of 900 tpa):Coconut shell is crushed into smaller size (10-40 mesh) andsoaked in a chemical solution (calcium chloride or zinc chloride)for about 12-15 hours and then air dried. The dried coconut shellis burned at 300oC-500oC. Burned coconut shell (charcoal) iswashed with distilled water until the pH of used water is 7.0 orneutral. The washed charcoal is dried at 110oC and the finalproduct is activated carbon.

(h) a nata de coco facility (output capacity of 1,200 tpa): Nata decoco is made by boiling and filtering coconut water, then addingsugar, vinegar acid and a liquid culture to the coconut water.Within about fifteen days, nata de coco is formed and cut into theappropriate size.

(iii) installation of a power generator (capacity 4,500 kilowatts [kW]): The highpressure steam generator to be installed in the plant will use coconut husks andshells as additional fuel. The smoke and gas will be released through a dustcollector/scrubber to reduce the pollution into acceptable levels.

(iv) construction and installation of the water and wastewater treatmentsystem. The water treatment facility will produce clean water for factory andhousehold use. The wastewater treatment plant will process the wastewater toreduce the pollutants to meet the Government's effluent standard beforedisposal.

(v) construction of roads (main, access, harvest); bridges; and canals: Theroads to be constructed will be used for planting, maintenance, and harvestingactivities. Measures to minimize erosion, such as avoiding steep slopes, will be

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incorporated in the Project design. A canal system will be built to drain swampyareas that will be planted to coconuts.

(vi) construction of support facilities: Housing, office buildings, and other supportfacilities for employees and workers will be constructed under the Project.

11. The company has already started developing the area. About 50 km of mainroads and 200 km of harvest roads were built, and 30 km of canals were constructed. Housingand other facilities for staff, employees and workers have been constructed. Land clearing andplantation development activities are ongoing. In the Batulicin area, public infrastructure isadequate and facilities for public transportation, health, education, and religious activities areavailable.

12. The oleochemical processing plant and one production line of the crude coconutoil mill are planned for construction in 1997. The other processing facilities will be built whencoconuts become available from the plantation.

13. The company will purchase feedstock (coconuts, crude coconut oil, and crudepalm oil) for processing into oleochemicals during the first few years of operations. Tocomplement its own coconut production, the company intends to purchase about 100 millionnuts a year from coconut planters. Should the supply be constrained or the price of coconuts orcrude coconut oil become very high, the company plans to shift to crude palm oil or palm kerneloil in the oleochemical plant processing.

14. Based on the Land Development Map issued by the government of SouthKalimantan Province, the Batulicin area is reserved for Hak Guna Usaha (Development UseRights). Kantor Wilayah Badan Pertanahan Nasional1 has issued a permit allowing the land tobe used for hybrid coconut plantation.

C. Description of the Environment

15. Baseline data of the Project have been acquired from several sources: reportsand literature; interviews with individuals; meetings with affected people; public representatives;Government officials; project-related data collection programs (population, geology, soils,water); and field surveys and sampling (water and air quality, plant pest and disease, villagesurvey, income survey and agronomy survey).

1. Physical Resources

16. Most of the Project area is dry land. The Batulicin River flows near the northernportion of the area, and the Kusan river flows near the southern part.

17. Two big river systems found near the project area, – the Kusan and Batulicin rivers –and two small rivers, the Pawaluhan and Serdangan rivers, empty into the Satiung river whichdischarges to the Kusan. The Satiung river runs across the Project area and divides it into two.During the dry season, the Kusan river is shallow, especially near Lasung village. Swampyareas occur at depressions in the Satiung River’s banks. Appendix 2 shows the water quality ofrivers in the Project area.

1 National Land Agency Province Office, No. SK/81/PL-460/1996/Kp-Ktb, 16-2-1996.

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18. Based on the climatic data obtained from Stagen Airport (in Kotabaru nearBatulicin) between 1982 and 1992, the average annual rainfall in the Batulicin Project area is2,384 millimeters (mm); the average number of rainy days in a year is 198; and the averagetemperature is 26.10C, with the lowest recorded temperature at 22.50C and the highest at31.10C. The average relative humidity is 86 percent and the average recorded wind speed is3.2 knots. The air quality in the plantation area and at the factory site of the coconut processingfacilities is good (see Appendix 3). The noise level in the factory areas is approximately 36-47decibels acoustic (dBA) (see Appendix 4).

19. The Project area was surveyed by the Ministry of Forestry in 1992. The land isconsidered non-productive dryland and empty land, with some swamp land. The Project area isrelatively flat, with some undulating land.

20. Based on the soil taxonomy1, the soil in the Project location is primarily ultisol,vertisol, and entisol. The four soil groups are paleudult, hapludult, chromudert, and tropaquent.These consist of five subgroups, plintic paleudult (4,903 ha), oxic hapludult (1,299 ha), aerictropaquent (810 ha), histic-vertic tropaquent (2,492 ha), and aquentic chromodert (3,936 ha).See also Appendix 5.

2. Ecological Resources

21. The land use map (scale 1:50,000) based on air photos in 1982, indicated thatvegetation cover in the Project area consisted of degraded forest, scrubs, and dry agriculturalland. However, a field survey conducted in 1994 and 1995 revealed that most of the area hadchanged to scrub and alang-alang (Imperata cylindrica) grass. The land in the Project areaapparently consists of dry land (abandoned slash-and-burn agriculture), some swampy areasnear rivers (permanently and temporarily inundated land covered with grass and swampvegetation), and some forested area along the Satiung river.

22. Vegetation in the Batulicin area consists mainly of scrub, bushes, andalang-alang grasses. Scrub includes the Melaleuca woods and banyan trees. Bushes andalang-alang grass are common in the area, especially in abandoned clearings. The onlyprotected tree species in the area is the jelutung (Dyera costulata).

23. There are 39 species of wildlife, which include 12 mammalian, 4 reptilian, and 23avian species (based on direct observation and information obtained from local people) withinthe South Kalimantan Province. The Sub-Regional Office for the Conservation of NaturalResources (SBKSDA) indicated that there are 16 protected species in the forest area (6mammalian, 2 reptilian, and 8 avian species).2 Within the Project area, wildlife population is lowand they stay mainly in the forested areas.

3. Human and Economic Development, and Quality of Life Values

1 Soil survey of 1992, Field Survey Report, South Kalimantan Territorial Office of the Ministry of Forestry, June

1992.2 The protected species are : Malayan sun bear (Helarctos malayanus), Barking deer (Muntiacus muntjak), Forest

cat (Felis planiceps), Mouse deer (Tragulus napu), Rusa deer (Cervus timorensis), Agile gibbon (Hylobatesagilis), Long-billed stork (Leptopilus javanicus), Ruby-cheeked sunbird (Anthreptes singalensis), Olive-backedsunbird (Nectarinia jugularis), Brahminy kite (Haliastur indus), Pacific reef-egret (Egretta sacra), Blue-earedkingfisher (Alsedo meninting), Stork-billed kingfisher (Pelargopsis capensis), White-breasted waterhen(Amauromis phoenicurus), Monitor lizard (Varanus borneensis), and Soft-shelled turtle (Chitra indica).

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24. The population around the Project areas in Batulicin is composed mostly of thelocal Banjar ethnic group, and transmigrants from Java and South Sulawesi (Java and Bugisethnic groups). The Banjar generally depend on agriculture and wood cutting for subsistence.The transmigrants from Java generally work as farmers and plantation workers. Transmigrantsfrom Bugis traditionally depend on sea fishing and boat making for their livelihood, with a fewpeople working in the agriculture and plantation sectors. The people living near the Project areaare not marginalized indigenous people. Officials in the area said that an adequate workforce isavailable to supply the labor requirements of the Project. They also believed that if employmentopportunities were available in the areas, migration from other areas would rise, which mayaccelerate local economic development.

25. The population classification according to age and gender (see Appendix 6)confirms the availability of labor in every subdistrict. It indicates that there are more adults thanchildren; therefore, the potential labor force in the project area is relatively high. Most peopleresiding in Batulicin are Buginese. Batulicin is adjacent to the plantation area that wasdeveloped in stage I. The Banjarensis people are prevalent in the area that will be developedduring stage II: the Serdangan area in Kusan Hilir and Lasung in Kusan Hulu. The relationsamong the three major ethnic groups (Banjar, Bugis, and Javanese) is commonly good.Historically, Banjar and Bugis ethnic groups have very good relations.

26. All-weather bitumen roads connect villages and subdistricts to Banjarmasin andother big cities. The roads leading to the Project area have been improved, although someportions require additional work. Batulicin harbor can handle ships of up to 6.000 tons. PTKodeco Batulicin Plywood, a member company of the Kodeco Group, uses the Batulicin harborto ship its products. This harbor will soon be upgraded as an alternate to Banjarmasin, whichcan handle 30,000-ton vessels.

27. Health facilities are available in the areas. At least one public health center canbe found in every district. Some villages have their own health center. PT Kodeco BatulicinPlywood has a polyclinic that serves the health and medical needs of its employees.Educational facilities, from elementary to secondary schools, are available. (Kodeco built someschools and other public facilities in Batulicin). Almost every village in the area has anelementary school and every subdistrict has at least one senior high school and one junior highschool. The Project area is supported by good public infrastructure and other facilities such aspublic transportation, health, education, and religious facilities.

D. Anticipated Environmental Impacts And Mitigation Measures

28. The development of coconut plantation and processing facilities may affect theenvironment. The environmental and social impact could be positive as well as negative.Environmental changes have been occurring since the area was opened to the operations ofthe plantations and factories. The Project could have the following adverse impacts: (i)increased erosion during land preparation and road construction, (ii) water and air pollution fromthe operation of processing plants and applications of pesticides and fungicides; (iii)displacement of wildlife in the Project area, including the swampy areas, and (iv) social andfinancial impacts on people cultivating the Project area (about 144 people have been providedwith compensation and about 150 more people are to be compensated in accordance with aLand Compensation Action Plan, see Appendix 7). Positive effects may include (i) increasedincome for most of the population and enhanced local economic activities, (ii) rehabilitation of

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degraded land, (iii) preservation of biodiversity in the conservation area, and (iv) improved jobopportunities and social infrastructure in the area.

29. Throughout the studies, the early identification of environmental and socialimpacts has been emphasized. Environmental and social aspects were considered during theprocess of selecting alternatives for siting of structures, design of components, and Projectoperation.

30. Other major activities undertaken include early and frequent interactions withGovernment authorities and local people. This has kept the planning team attuned to publicconcerns and desires, and has facilitated the participation of the local population in the Projectprocess. As a consequence of this approach, it has been possible to identify and avoid, or atleast mitigate, potential serious adverse environmental and social effects. All theaforementioned impacts will be monitored during construction and operation of the Project. Theprincipal impacts are described below.

1. Land Resources

31. A total land of 18,920 hectares is allocated for offices, staff and employeehousing and storage buildings (20 ha); factory and support facilities (15 ha); roads and canals(60 ha); seed gardens (5 ha); conservation areas (820 ha); and hybrid coconut plantation(18,000 ha).

32. The allotment of the total Project area was authorized by the Badan PertanahanKotabaru (The District Land Agency of Kotabaru).1 The Project follows the South KalimantanProvincial land-use plan, therefore, no conflict on land use is anticipated. About 300 peopleutilizing the area will be properly compensated based on Government guidelines.2 The Projectdoes not involve resettlement.

33. Approximately 2,800 ha are swampy and a canal network will be built in thisarea. The canal banks might erode if they are not strengthened (particularly the 30-kmembankment adjacent to the Satiung river). To mitigate this problem, the surplus materialexcavated from the canal will be placed along both sides of the canal and will be compacted foruse as a harvest road. The canal embankment will be planted with vegetation to reduceerosion. The other portion of the land (approximately 300 ha) is undulating. When the roadnetwork is developed through this area, the road surface and the roadside might erode,particularly during rainy season. Because there are no very steep slopes, significant soil erosionis unlikely to happen. However, measures will be taken to minimize soil erosion during Projectimplementation, including avoidance of slopes and provision of drainage. To prevent erosionparticularly in the hilly areas between the coconut trees, vacant land will be planted with legumecover crops.

1 Based on the permit issued by the Governor of South Kalimantan Province and Director General of Estates of

Deparment of Agriculture; location permits from the Badan Pertanahan Kotabaru (The District Land Agency ofKotabaru) No. SK.81/PL-460/KP-KTB, February 16, 1996; and a permit from Ministry of Agriculture forCultivation of Hybrid Coconut in Batulicin, South Kalimantan, No.:HK.350/E4.1074/12.93, December 18, 1993.

2 Compensation has been given to the 144 people who were using 438.5 ha) amounting around US$34,850.00 forthe cultivated land and all properties on the land such as the fruit, rubber, and other plants. The 438.5 ha wereinside a 7,000 ha portion of the Project area. An agreement between the Project company and the affectedpeople has been signed and approved by the District Land Agency. Inside the remaining 11,920 ha of theProject area, an additional 150 people who cultivate illegally within the area will be compensated followingGovernment guidelines. The Land Compensation Action Plan is in Appendix 7.

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2. Water and Air Pollution

34. Water samples from both the Batulicin and Kusan rivers showed that the water isunsuitable for drinking and may not be usable for processing coconut oil without prior treatment.The water hardness may also affect the water's suitability for boiler use. Therefore, a watertreatment facility will be provided and has been included in the Project financial plan. Thetreated water will be used for the Project’s operations as well as for domestic use. Acombination of chemical treatment (lime, ferrosulphur, calcium chloride and chlorine) andphysical treatment (filtering with sand and carbon, and by a microfiltration process) will beemployed. Water intended for boiler may have to be filtered, using sand and resin filter, and willbe chlorinated.

35. The operation of the oleochemical plant and the associated activities mayproduce wastewater and emissions that may affect the environment quality. Wastewater willcome mainly from processing facilities, including washing of coconuts. Contamination couldalso result from oil leakage or improper disposal of lubrication oil, but this could be controlledthrough proper operation of the plant and implementation of the environmental managementplan.

36. The integrated coconut processing facilities will produce wastewater with thefollowing characteristics: biochemical oxygen demand (BOD) 1,028 mg/l, chemical oxygendemand (COD) 1,850 mg/l, oil and grease 43.0 mg/l, and pH around 4.5. About 350 cubicmeters of wastewater will be produced per day. If directly disposed of into the environment, thewastewater would exceed the Government effluent standard and may deteriorate the quality ofthe receiving body of water and adversely affect the aquatic environment. To mitigate thisimpact, a water treatment plant will be installed to treat the wastewater before its disposal. Thewastewater will pass through the following process during treatment: screening, oil and greaseremoval, equalization, neutralization, an activated sludge process, sedimentation, thickening,and chlorination. The treated wastewater will pass through a maturation pond with fish (as anindicator), and will be released into the river after 5-7 days. Effluent quality after treatment(BOD 120.8 mg/l, COD 185 mg/l, oil and grease 4.3 mg/l, and pH 6-7) will meet theGovernment's effluent standard (BOD 150 mg/l, COD 300 mg/l, oil and grease 10 mg/l, and pH6-7).

37. Air pollution may come from the oleochemical plant, charcoal production, and thepower plant (using steam generator). The emission from the oleochemical plant is primarilytraces of coconut oil and is considered acceptable.,It does not produce significant pollutinggases and the quantity is relatively small compared with the emissions from the charcoal plant.Air pollution from charcoal production could be more significant: about 35 tons of coconut shellwill be produced daily, and this will be processed into charcoal and activated carbon. The gasesproduced during the process include sulfur dioxide (SO2), nitrogen oxides (NOx), ammonia(NH3), hydrogen sulfide (H2S), and carbon monoxide (CO); among which, NOx at 200 parts permillion (ppm) and CO will be at 40 ppm will exceed the Government emission standard. Withthe gas emission, some dust and smoke may be released from the chimney. To mitigate theenvironmental impact, pollution prevention measures have been planned and will be installed,These include attaching a scrubber to the double drum kiln installing a waste heat recovery unitto reduce the release of hot air and other gaseous elements, and constructing at least a 20-meter smokestack for emissions dispersion. Installation of pollution prevention devices willreduce the concentration of pollutants (to 4 ppm of SO2, 40 ppm of NOx, 7.5 ppm of NH3, 7.5

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ppm of H2S, and 8 ppm of CO) to meet the Government emission standards (260 ppm of SO2,92.5 ppm of NOx, 1,360 ppm of NH3, 42 ppm of H2S, and 20 ppm of CO). A dustcollector/scrubber will be installed to minimize the emission of total suspended particulatesfrom the power plant. The total ash produced is estimated at 1.5 tons daily, and this will beapplied to the fields.

3. Biological Resources

38. Most of the Project area had been degraded by previous agriculture activities,characterized by a short fallow period, and increased pressure on the land; therefore, clearingof land for the plantation development and Project facilities is not likely to cause a significantenvironmental impact. Land clearing will be done systematically, so that wildlife in secondaryvegetation and scrub areas will migrate (or be driven) to undisturbed areas. Cages will also beavailable near the land clearing areas to transfer animals into the designated conservationareas.

39. Draining the swamp area may have environmental impacts. However, theBatulicin swamp area is not reported to be visited regularly by migrating waterfowl, and is notpart of the three areas identified by the Asian Wetland Bureau as wetland of potentialsignificance in Kalimantan. Also, the swamp area may not be a spawning or nursery ground forfish. However, considering the importance of maintaining biodiversity in the area, around 200ha of the swamp area will be left undisturbed as representative of the ecosystem in the areaand to maintain the functioning of the ecosystem.

40. To ensure the protection and survival of wildlife in the area, especially theprotected species, the Project will allocate approximately 820 ha for the conservation of floraand fauna. The conservation area consists of swamp along the Satiung river, and the forestnear rivers (the best forest habitat in the area and the habitat of the wildlife). Signboards will beset up at the borders to prevent entrance and disturbance. People living in the surrounding areaand the Project's workers will be informed periodically that the natural vegetation and wildlife inthe conservation area are under protection. PTBAM will monitor the environment conditionscontinuously with the assistance from the staff of SBKSDA Kotabaru. The conservation area isreserved for the protection of wildlife, including the 16 protected species (see para. 23).

41. Any unexpected emergence of disease, particularly that attacking the coconutplantation, will be mitigated by implementing integrated pest and disease control methods underthe supervision of the pest and disease control expert. Biodegradable pesticides and fungicideswill be used during Project operation.

42. If a serious pest outbreak occurs, pesticides will be sprayed from an airplane byan accredited company with suitable expertise, equipment, and licenses. Such spraying has tobe approved by the Central Commission for Pesticide (Komisi Pusat Pestisida) of the Ministry ofAgriculture. The Commission will consider the location, use of approved pesticides, andenvironmental impact before giving its approval. Pesticides classified as hazardous by WHOwill not be used.1 Considering the measures that will be taken, the impact of pesticides on theaquatic environment, including fish, will be minimal and within acceptable levels.

1 WHO Recommended Classification of Pesticides by Hazard and Guidelines to Classification 1986-1987,

Geneva, Switzerland.

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43. The entire coconut plantation will be planted with leguminous cover crops. Thecover crops will (i) help control weeds, (ii) maintain the top soil structure and texture, and (iii)provide additional organic fertilizer. Three legume species will be planted, Pueraria javanica,Calopogonium mucunoides, and Calopogonium celinum.

4. Social and Economical Aspects

44. The Project will avoid significant social effects by various measures, includingthe selection of environmentally and socially acceptable sites.

45. The concession area is scarcely populated. No villages are located in theplantation area. People normally live in the villages. People who live along the Kusan andBatulicin rivers work on their limited agriculture land and may work part-time fishing or asseasonal laborers. Some people collect wood or rattan from the nearby forest for their living.The people who live near the Project area are not marginalized indigenous people.

46. The land in the Project area belongs to the Government (under forestry landstatus, although it is not necessarily forested). The people cultivating the area and working onthe land are fully aware of the status of the land. In the past, slash-and-burn agriculture wascommonly practiced, and traces of such practices can still be observed. However, most of thepeople have moved from the area to nearby villages. As 7,000 ha has been developed for theProject, 144 affected people who have been cultivating the land have been provided faircompensation. A compensation agreement has been signed between PTBAM and the affectedpeople and acknowledged by the local government, and there are no outstanding issuesregarding their compensation. PTBAM is committed to providing fair and prompt compensationto persons who lose their plants or other properties as well as to those whose livelihood isdirectly affected by land acquisition. District, subdistrict, and village heads have worked withPTBAM (as a team) in implementing and supervising the process of compensation payment.The rate of compensation was in accordance with the Government's guidelines and inconsultation with the affected population. Another 150 affected people, who illegally cultivateabout 500 ha of the remaining 11,920 ha of land, will be compensated when the land clearingstart. The detailed Land Compensation Action Plan is in Appendix 7.

47. In addition, the Project will provide employment, training, and social facilities tohelp the displaced people adjust to the new environment. Highest priority for jobs in the Projectwill be accorded to the people living near the Project area and families that lost their earnings(from collecting wood from the forest and cultivating land inside Project area). This maysignificantly stimulate the local economy and enhance the living standard of some of the peoplewho are still considered poor. The Project will employ 15,000 people, including around 300affected people, and on-the-job training will be provided. The Project’s hiring policies will givepriority to the local people, who may work as seasonal labors, employees, and even as staff forthe hybrid coconut plantation and in the integrated coconut processing plants.

48. Some of the swamp will be drained for plantation development. Social impactsfrom draining swampy area in the Project site will be insignificant because the Batulicin area isnot considered productive for fishing.

49. The effect of the Project on rural development, although not quantifiable, isexpected to be very significant. Clearly, the Project supports the Government program toenhance the economic conditions of rural population. The Project will improve local people’s

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incomes, facilitate the development of the local economy, and improve social infrastructure inthe Project area.

50. Mitigating measures have been prepared for the Project. Key elements of themitigation plan are summarized in Appendix 8. A monitoring plan has also been prepared (seeAppendix 9). Appendix 10 summarizes the estimated cost of environmental management forthe Project.

E. Development Alternatives

51. Without the Project, most of the land will continue to be degraded by local peoplefor agricultural purposes. Extensive land was covered by scrub and alang-alang grass, withsome standing burned tree trunks indicating slash-and-burn agriculture. Some empty huts inthe Project area, particularly near rivers, were left by part-time farmers or fishermen. This landappeared to be abandoned and unproductive. The residual forested and swamp areas alongrivers may be cleared for agriculture by local people who need land. The alternatives are to (i)leave the land as it is (without development); or (ii) develop the land using an environmentallysound development approach.

52. The first alternative is not recommended, as the present activities in the area areunsustainable and have led to land degradation and environmental deterioration. Furtherdegradation could happen. Factors that contribute to the deterioration of the environmentinclude (i) increased pressure by local people who need land or other natural products for theirsubsistence; (ii) slash-and-burn agriculture, which would cause further degradation; and (iii)overexploitation of the land resulting to poor natural regeneration. If this situation is notcorrected, further degradation will occur, including that of the remaining forested areas withconsequent effects on its associated wildlife.

53. The second alternative will arrest the trend of environmental degradation. Theenvironmentally sound development approach is selected to fit the land capacity and capability,social considerations, and availability of infrastructure. Agriculture and agroprocessing are themost feasible and viable option to rehabilitate the degraded land, alleviate poverty, and arrestfurther degradation of the land and forest by providing work through the Project. The Project willalso help to conserve the forest and the associated wildlife in the area by demarcating theforest and some of the swamp as conservation areas for the preservation of biodiversity.

54. Hybrid coconut plantation was selected because it is considered most suitablefor the area (presently South Kalimantan has around 60,000 ha of coconut plantation producingan estimated 400 million coconuts per year). Maintenance is not a problem because plantationwork is familiar to local people. Unlike oil palm, which merely provides its oil, coconuts provideoil and other useful and readily marketable products, i.e., coconut meat, husk, shells, andwater. Even the roots, trunks, and leaves of coconut trees can be used. Several alternatives forthe agroprocessing were considered, including oleochemical, crude coconut oil, desiccatedcoconut, and edible cooking oil. The oleochemical processing was selected mainly because ofits financial viability, but also because it will provide biodegradable oleochemicals. The Projectwill produce valuable by-products such as coconut shell charcoal, activated carbon, coir fibermatting, rubberized coir fiber, and nata de coco. Various Project activities will provide jobopportunities for the local people. The Project will provide stable incomes, improve standards ofliving, and hence reduce pressures on the natural ecosystem.

15

F. Cost-benefit Analysis

55. Total Project cost until 2000, including interest during construction and otherpreoperating expenses, is estimated at US$182.5 million in 1996 prices. The Project costcomponents include land acquisition, land preparation, plantation establishment, civil works,machinery and equipment, water treatment system, working capital, and housing and othersupport facilities. The Project has a financial internal rate of return (FIRR) of 15.4 percent. Thesensitivity analysis showed that the FIRR will drop (i) to 12.3 percent if the selling price falls by10 percent because of the unfavorable market conditions, and (ii) to 14.8 percent if the yielddeclines by 10 percent.

56. The quantifiable environmental mitigation costs have been included as anintegral part of the Project budget. It includes US$469,130.00 for environment equipment,US$27,910.00 per annum for mitigation measures, and US$3,200.00 per annum for theenvironmental monitoring program.

G. Institutional Requirements and Environmental Monitoring Program

1. Institutional Requirements

57. PTBAM will have the overall responsibility for the environmental impactmanagement and monitoring of the Project. It will undertake environmental management andcoordinate monitoring activities with related government agencies and institutions. Whenevernecessary, PTBAM Environment Team will undertake additional studies or surveys to gaininformation about particular issues regarding the Project. Reports on environmental aspects ofthe Project will be made every six months, and submitted to the responsible governmentagencies at local, provincial, and central levels.

58. PTBAM will (i) strengthen its Environment Team by adding a social scientist tothe team to deal with social issues, (ii) appoint consultants (when necessary) to support theenvironment team in handling particular environmental issues, and (iii) work with relatedagencies.

59. The Government Environmental Section (at the District level) has assisted andwill continue to assist PTBAM in coordinating with the local population on matters related toland acquisition, compensation, labor/worker recruitment, and the area allocation ofdevelopment public activities. The Government will also help monitor the social aspects of thearea during construction and operation periods.

60. One important step to be taken by PTBAM is strengthening its EnvironmentTeam, which will be responsible for overseeing the environmental and social aspects of theProject during and after construction. This team will use the field office as well as the mainoffice. The field office will be primarily for operations and the main office will be primarily forcoordination with related agencies and institutions. In its operation, the environment team willhelp implement the environmental management plan and environmental monitoring plan. Inaddition, PTBAM will ensure proper operations of all pollution prevention devices by enhancingthe technical capabilities of its staff. To achieve this objective, PTBAM will

16

(i) draft environmental guidelines on the operation of the pollution preventiondevices, such as the wastewater treatment plant, dust collector/scrubber, andwaste heat recovery unit;

(ii) prepare an environmental management plan for plantation and factory operationand provide standard operating procedures for each activity;

(iii) implement institutional and labor force development, including environmentalmanagement training; and

(iv) establish an environmental data management information system within PTBAMand providing training on the system.

61. The staff needed for the mitigation and monitoring activities for the Project area,particularly for the plantation, has been identified and posting of staff has started. TheEnvironment Team will have both an overseeing and a participatory role in planning,implementing, and monitoring activities for the Project.

2. Monitoring Program

62. Monitoring will be conducted on a regular basis. Results of the environmentalmonitoring will be used as feedback to improve the environmental management plan. Appendix9 summarizes the monitoring program.

a. Land Resources

63. The road and canal development may cause erosion on approximately 300 ha ofthe Project area that is sloping (5-8 percent). Erosion will be monitored periodically on roadsand canal banks, especially during the rainy season.

b. Water Resources and Air Quality

64. A regular program of effluent and air quality monitoring will be conducted toensure that the effluent and emissions produced by the processing plants will meet theGovernment effluent and emission standards. For water quality monitoring, samples will betaken from factory outlets, and from river water near the factories, particularly the portions ofrivers that pass through settlements. Air quality will be monitored in factory areas and nearbysettlements.

c. Biological Resources

65. Although important wildlife species are not likely to inhabit the secondaryvegetation, scrub, and grassland; their presence will be looked for when vegetation is beingcleared. Any such species noted will be brought into the conservation forest, and will bereported to SBKSDA.

66. The conservation area will be monitored to ensure that the representativeecosystems in the area are conserved to ensure their sustainability and to provide a habitat forthe protected species.

17

d. Social Aspects

67. Although the Project will utilize Government land, only about 300 people in thearea will be affected. The Project mitigation program includes compensation and giving suchpeople high priority to work in the Project. As social issues are sometimes fluid, monitoring willbe necessary to ensure that mitigation measures are properly implemented.

H. Public Involvement

68. During the feasibility and environmental studies, public in and around theaffected area have been adequately informed and consulted on the proposed plantation andfactory development. About 125 households have been consulted during the study. The Projectpaid attention to their concerns. Community participation, mostly in human resources aspects,has been an important feature throughout the Project environment studies.

69. A social study was conducted in some villages in the three affected subdistricts.The study included informing the people about the Project and obtaining their views. Theinterviews indicated that people in the area support the Project and expect to benefit from it.Those who are directly affected generally expect to be able to work in the Project to replaceincome lost from agriculture and fisheries.

70. During implementation, meeting with the public and dissemination of informationwill be continued, so that people can participate in the Project's various activities and supply thecompany with services, agricultural products, and other items.

I. Conclusion

71. Negative impacts foreseen during Project implementation include soil erosion,impacts on flora and fauna, air and water pollution, risk of pests and disease, and socialimpacts. Mitigation measures will be implemented to minimize environmental impacts toacceptable levels. Mitigation measures that will be implemented include: (i) controlling erosionby avoiding construction on steep slopes and by providing ground cover vegetation soon afterthe land becomes stable; (ii) conserving about 820 ha of existing forest and part of the swampareas; (iii) installing air and water pollution control devices; (iv) implementing the integrated pestand disease control methods with the supervision of a disease and pest control expert; and (v)compensating the affected people and providing them with job opportunities.

72. Positive impacts will be enhanced and developed to support all Project activities.The major positive impacts of the Project include job opportunities, new business opportunities,rehabilitation of degraded land, and preservation of biodiversity in the conservation area. TheProject will raise the people’s income, enhance social infrastructure, and improvesocioeconomic conditions in the area.

73. The effect of the Project on rural development, although not quantified, isexpected to be significant. Clearly, the Project support the Government's program to enhancethe economic conditions of rural population. The Project is expected to stimulate greatly thelocal economies around the Project area and to benefit people who have a low standard ofliving.

18

APPENDIXES

Number Title Page Cited on (page, para.)

1 Location and Project Maps 17 1, 5

2 Water Quality 19 5,17

3 Results of Air Quality Sampling 20 5, 18

4 Noise level Measurements 21 5, 18

5 Soil Chart Units 22 5, 20

6 Population Classification 23 6, 25

7 Land Compensation Action Plan 24 7, 28

8 Mitigation Measures Program 26 11, 50

9 Environmental Monitoring Program 27 11, 50

10 Cost of Mitigation Measures 28 11, 50

Appendix 2

WATER QUALITY

Parameter Unit Sampling Station1 2 3 4 5 6 7 8 9 10 11

Physical : 1. Temperature oC 29 29 28 28 28 29 29 29 30 29 28 2. Clarity cm 20 15 25 15 10 20 50 20 50 30 >50

3. Turbidity

NephelometricTurbidity

Unit 8 11 67 10 12 42 17 17 11 47 0.56

4. ConductivityMicromho/

cm2 250 260 120 250 260 20 130 1400 1750 94 17 5. Smell - no smell no smell no smell no smell no smell no smell no smell no smell no smell no smell no smell 6. Taste - rather acid rather acid rather acid rather acid rather acid rather acid rather acid neutral neutral rather acid neutral 7. Colour - dark brown dark brown dark brown dark brown dark brown dark brown light brown brown brown light brown clear8. MPT mg/l 352 359 248 296 448 204 304 256 180

Chemical :1. pH 5 5 4 4 5 6 6 6 7 7 7 2. Alkalinity Total mg/l 15.60 26.20 49.00 67.80 118.05 26.80 106.10 103.50 130.70 125.90 132.40 3. Total Hardness mg/l CaCo3 138.14 145.20 90.09 145.15 147.15 17.02 78.08 359.36 437.44 82.08 139.14 4. Total Fe mg/l 0.214 0.232 0.832 0.380 0.431 0.658 0.372 0.093 0.002 0.434 <0.011 5. Mangan (Mn) mg/l 0.054 0.060 0.049 0.030 0.054 0.026 0.023 0.032 0.042 0.023 0.003 6. Kalium (K) mg/l 3.890 3.960 1.619 3.328 3.138 1.889 0.345 30.720 38.960 1.828 0.429 7. Magnesium mg/l 0.24 3.13 11.08 10.84 9.88 3.13 12.05 57.35 28.19 10.13 8.42 8. Calsium (Ca) mg/l 48.85 50.62 17.62 40.04 42.44 1.60 11.21 48.05 128.13 16.00 41.64 9. Amonium mg/l 0.040 0.060 0.040 0.060 0.070 0.040 0.040 0.060 0.00110. Nitrate mg/l 0.315 0.500 0.211 0.446 0.520 0.223 0.324 0.080 0.135 0.215 0.12511. Nitrit mg/l 0.0034 0.0046 0.0028 0.0050 0.0060 0.0026 0.0030 0.0048 0.000812. Sulphate mg/l 58.170 59.781 14.327 59.781 65.190 12.140 17.434 79.469 105.811 16.308 <0.00113. Phosphate mg/l 0.025 0.027 0.119 0.018 0.027 0.056 0.046 < 0.001 < 0.001 0.045 0.01114. Sulphete mg/l 1.6 1.8 2.0 2.0 2.2 0.0 0.0 0.1 ttd15. Chloride mg/l 50 60 50 70 120 80 70 80 9016. DO mg/l 6.0 5.6 5.8 5.0 4.7 6.2 6.1 5.5 7.417. CO2 mg/l 2.0 2.6 2.4 2.3 3.2 2.3 2.6 2.4 1.018. BOD5 mg/l 0.20 0.20 0.85 0.70 0.85 1.15 0.20 5.10 4.20 0.35 0.2019. COD mg/l 33.00 37.01 12.01 31.50 22.51 40.49 10.51 67.48 119.94 49.49 5.7220. TOM mg/l 31.60 38.15 13.27 25.28 12.01 13.90 11.38 8.85 8.22 11.38 5.06

Note: 1. Upstream Serdangan River 7. Upstream Batulicin River2. Downstream Serdangan River 8. Downstream Mati River3. Upstream Satiung River 9. Upstream Mati River4. Middle Satiung River 10. Camp Dam5. Downstream Satiung River 11. Downstream Batulicin River6. Downstream Batulicin River

Source: The Water Laboratory, IPB, Bogor, West Java. Physical and Chemical of Water Analyses Results, 1994.

(Physical and Chemical Analyses of the Rivers in the Project Area)

1

Appendix 3

RESULTS OF AIR QUALITY SAMPLING

Sample Station SO2(ppm)

NOx(ppm)

NH3(ppm)

H2S(ppm)

Dust(ppm)

Batulicin Riverside 0.39 0.74 4.17 2.48 36.8

Factory Location 0.09 0.25 1.49 0.62 19.5

200 m South from thefactory

0.89 0.36 18.1

Average 0.13 0.33 2.17 1.15 21.4

Minister of EnvironmentDecree No. 02/1988

260.0 92.5 1360 42 260.0

Source: The Air Quality Laboratory, Geophysics and Meteorology, FAMIPA-IPB, Bogor,West Java,29 October 1994.

2

Appendix 4

NOISE LEVEL MEASUREMENTS

Sample Location Sound LeveldBA

Batulicin Riverside 41-47

Factory area 38-45

200 m, South from the Factory 36-41

Sound Level StandardMinister Manpower Decree 01/78

85

Source: The Air Quality Laboratory, Geophysics and Meteorology, FAMIPAIPB, Bogor,West Java, 29 October 1994.

3

Appendix 5SOIL CHART UNITS

SCU - 1 Plinthic Paleudult soil; clayey texture; rapid drainage; 5 percentrock content; effective depth of 60 cm; pH 4.2; surging form ofterritory. This unit area covers about 1,227 hectares.

SCU - 2 Plinthic Paleudult soil; clayey texture; rapid drainage; 5 percentrock content; effective depth of 80 cm; pH 4.1; wavy formterritory. This unit area covers about 3,676 hectares.

SCU - 3 Oxic Hapludult soil; clayey texture; medium drainage; 2 percentrock content; effective depth of 90 cm; pH 4.4; wavy formterritory. This unit area covers about 1,299 hectares.

SCU - 4 Aeric Tropaquent soil; clayey texture; quite blocked drainage 10percent rock content; effective depth of 50 cm; pH 4.8; flatterritory. This unit area covers about 810 hectares.

SCU - 5 Histic - Vertic Tropaquent soil; dusty clayey texture; blockeddrainage; < 2 percent rock content; effective depth of 40 cm; pH5.3; concave-flat form of territory. This unit area covers about2,492 hectares.

SCU - 6 Aquentic Chromudert soil; dusty clayey texture; quite blockeddrainage; < 2 percent rock content; effective depth of 50 cm; pH5.7; flat form of territory. This unit area covers about 3,936hectares.

Note: SCU – Soil Chart UnitSource: Agribusiness Research and Development Center, Jakarta, April 1994:

“Plantation and Agroindustry Project of Hybrid coconut, Batulicin,Katabaru, South Kalimantan”.

Appendix 6

POPULATION CLASSIFICATION(Kotabaru District)

Sub District Area Adult Children Household Total Density(km2) Male Female Subtotal Male Female Subtotal Population Per km2

Batulicin

Kusan Hulu

Kusan Hilir

1,250

825

1,315

15,817

14,020

5,219

13,827

14,099

4,636

13,827

14,099

4,636

12,369

10,253

3,456

11,331

9,832

3,322

23,700

20,085

6,778

12,972

10,233

4.061

23,700

20,085

11,414

43

59

13

Source: Kotabaru District Statistics Office, Katimantan Selatan, 1994, “Kotabaru Statistics, 1994”.

Appendix 7, page 1

LAND COMPENSATION ACTION PLAN

1. Total area for the proposed Project is 18,920 hectares (ha) consisting of 18,000 ha ofhybrid coconut plantation plus 920 ha allocated for supporting facilities and conservation areas.The Project does not involve resettlement, because all the affected people have a permanentresidence in a village near the Project area (Lasung, Serdangan, and PT Perkebunan KarangBintang), and only work as part time wood and rattan collectors or part time farmers, in the areaduring the day.

2. Compensation to 144 affected people, who cultivated about 438.5 ha (inside a 7,000 haportion of the Project area), had been provided according to the Government guidelines. Anagreement between the Project company and the affected people has been signed and wasapproved by the District Land Agency on 24 August 1995 with document No. 02/PH-VIII/1995/KP-KPB, in which the District Land Agency released the land rights of 438.5 ha to theProject company. The total amount of compensation is approximately Rp 80 million orUS$34,782.60.

3. Land clearing of the remaining 11,920 ha will be done in the future. About another 150people, who cultivated approximately 500 ha, will be affected by the Project. These people areillegally working on the land, do not have ownership nor land-use right, and work as part timewood and rattan collector or farmers cultivating crops and rainfed rice during the rainy season.Compensation will be provided to these people when the land clearing starts. According to theplanting program, the land clearing will be implemented as shown in Table 1.

Table 1: Planting Program

Year PlantingProgram

LandClearing

EstimatedCultivated

Land

AffectedPeople

1993-19951996199719981999

4,127 ha3,000 ha3,500 ha4,000 ha3,373 ha

4,500 ha3,000 ha4,000 ha4,500 ha2,920 ha

200 ha a238.5 ha a

200 ha250 ha50 ha

72 a

72 a

707010

a To date, total 144 people with 438.5 ha have been provided with fair compensation

Compensation of the 150 people will follow the procedures implemented during 1993 to providefair compensation to the affected 144 people who have been paid already.The future actionplan to handle the 150 people includes the following:

1) Establishment of a land release team, consisting of Project staff, Government apparatus,and village members.

Appendix 7, page 2

2) Meetings in the village office or in Project office between the affected people and Projectstaff, attended by the land release team. In these meetings, issues including the price ofplants, structures and other things, as well as when the compensation will be provided, willbe discussed and negotiated. Values of the compensation are based on the Decree of theKotabaru District Head No.:94/1994, date 7 July 1994 on "Compensation evaluation of landand all structures based on percentage proof rights and agreement for releasement of therights implementation, in Kotabaru district area."

3) The team will visit the fields and make inventory of affected people and locations andevaluate the cultivated areas, plants and structures on the cultivated area. The inventoryand evaluation will be based on the Decree of the Kotabaru District Head No. 165/1994,date 19 October 1994, on basic price value of plant and crops in Kotabaru.

4) After all the parties agree, a surat pernyataan kesepakatan bersama (memorandum ofunderstanding) will be made and signed by all parties, then approved by the land releaseteam.

5) Compensation will then be provided to the affected people.

6) When all of the 150 people have been compensated, the Project will apply to the DistrictLand Agency of Kotabaru to issue an akta pelepasan hak atas tanah (certificate of releasefor land rights) which contains the summary of all the memoranda of understanding.

Appendix 8MITIGATION MEASURES PROGRAM

Environmental Management Cost ($) InstitutionEnvironmentImpact to beControlled

Source of Impact Parameters to beControlled Mitigation

MeasuresPositiveImpact

Enhancement

Time and PeriodInvestment Operational Supervising

AgenciesReport Submission

Air QualityDegradation

factory emission andsmoke

SOxNOxH2SDust

20-M chimneywaste heat rec. unit

double drum kilnscrubber

- throughout projectlifetime,

3 times a month

21.739 3,130 Industry EnvironmentBureau

Industry EnvironmentBureau

Deterioration ofWater Quality

factory waste anddomestic waste

COD, BOD, pH, DO,temperature, electric

conductivity, TSS, TDS,salinity/oil/grease

Wastewatertreatment plant &domestic waste

control


3 times a month

417,391 10,435 AgriculturePublic Work

IndustryEnvironment Bureau

AgriculturePublic Work

IndustryEnvironment Bureau

Flora land clearing vegetation structuresbiodiversity

establishconservation area


once a year

2,174 Forestry EnvironmentBureau

Forestry EnvironmentBureau

BanjarmasinFauna land clearing biodiversity

& populationpest potential

establishconservation area


once a year

2,174 Forestry EnvironmentBureau

Forestry EnvironmentBureau

BanjarmasinPest AndDisease

coconut plantationdevelopment

potential pestand disease,

potential attack

integrated pestcontrol


at anytime

1,739 3,478 Agriculture-EstateAgriculture-Crops

EnvironmentBureau

Agriculture-EstateAgriculture-Crops

EnvironmentBureau

PublicDissatisfaction

land acquisition social unrest public participation - throughout projectlifetime,

land acquisition phase

6,522 National Land AgencyManpower Offices

EnvironmentBureau

National Land AgencyManpower Offices

EnvironmentBureau

WorkOpportunity

work component atfactory andplantation

work volume/kindworker quantityskill/education

- developeducation skill

project developmentand construction

4,348 2,609 Manpower OfficesAgriculture-EstateAgriculture-Crops

EnvironmentBureau

Manpower OfficesAgriculture-EstateAgriculture-Crops

EnvironmentBureau

New BusinessOpoortunity

daily requirementsby workers and

employees

daily requirementsby projects

worker incomeworker demandworker quantity

project demand

-

-

economyfacility

purchase localcoconut

throughout projectlifetime

6,522 2,609 Environment Bureau Environment Bureau

Appendix 9ENVIRONMENTAL MONITORING PROGRAM

InstitutionEnvironmentImpact to beMonitored

SourceOf

Impacts

ParametersTo be

Controlled

MonitoringLocation Methods

MonitoringTime and Period

MonitoringCost ($) Supervision

AgenciesReport Submission

Air QualityDegradation

factory emissionand smoke

SOXNOXH2SDust

factory area settlement AirQuality

Analysis

throughout periodlifetime

(once per quarter)

696 MeteorologyIndustryDistrict

Environment Bureau

IndustryDistrict

Environment Bureau

Deteriorationof WaterQuality

factory waste anddomestic waste

COD, BOD, pH, DO,temperature, electric

conductivity, TSS, TDR,salinity/oil/grease

wastewatertreatment plant

outlet, andriver near factory

and settlement areas

titrimetricelectrode

spectrophotometric


(once per quarter)

957 EstatePublic Works

IndustryPublic Health

DistrictEnvironment Bureau

Agriculture

Industry


Flora land clearing

flora conservation

vegetation structurebiodiversity

vegetationstructures biodiversity

Project site(plantation area)

conservation area

observation

observation

During land clearing

(once a year)

91 ForestryDistrict

Environment Bureau

ForestryDistrict

Environment Bureau

Fauna land clearing

fauna conservation

biodiversity& populationpest potentialbiodiversity

conservation area

conservation area

observation

observation

During land clearing

(once a year)

91 ForestryDistrict

Environment Bureau

ForestryDistrict

Environment Bureau

Aquaticecosystem

domestic waste PlantonBethos

water parts used bypopulations

titrimetricelectrode

spectrophotometric


(once per quarter)

87 FisheryDistrict

Environment Bureau

AgricultureDistrict

Environment BureauPest anddisease

coconut plantationdevelopment

potential pest anddisease,

potential attack

entire plantation area observation throughout periodlifetime

(at anytime)

809 EstateAgriculture


AgricultureDistrict

Environment Bureau

PublicDissatisfaction

land acquisition compensation Villagesparticularly at the

project border area

observationand interviews

During projectdevelopment

(once a month)

183 Land BoardHuman Resources


District EnvironmentBureau

WorkOpportunity

work componentat factory

and plantation

work volume/kindworker qualityskill education

potential people atthree subdistricts

BatulicinKusan HuluKusan Hilir


andsecondary data


(once per quarter)

130 Human ResourcesEstate

AgricultureDistrict

Environment Bureau

AgricultureDistrict

Environment Bureau

New businessOpportunity

daily requirementsby workers

and employees

daily requirementsby projects

worker incomeworker demandworker quantity

project demand


andsecondary data


(once per quarter)

130 District EnvironmentBureau

District EnvironmentBureau

Appendix 10COST OF MITIGATION MEASURES

Investment Cost Operating Cost(yearly)

Activity Total Cost ($) Activity Total Cost ($)

a. Waste Heat Recovery Unitb. Double Drum Kilnc. Dust Collectord. Wastewater Treatment Plante. Water Treatment Plantf. Domestic Waste Facilityg. Pesticide Equipmenth. Training Facilitiesi. Market Facility

Total

13,0434,348

21,739130,435217,39169,5651,7394,3486,522

469,130

a. Erosion preventionb. WHU, Double Drum Kiln and Dust Collectorc. Wastewater Treatment Plantd. Maintenance Conservation Areae. Pest and Disease Controlf. Manpower Development

Total

3,1305,2175,2174,3483,4786,522

27,913

summary environmental impact assessment · these studies were part of the feasibility study...

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