Indigenous Peoples Planning Framework

For Ecosystem Restoration Concessions

RP1158

5/27/2011

Introduction

  1. This Indigenous Peoples Planning Framework (IPPF) has been developed for the GEF/WB project, “Promoting Sustainable Production Forest Management to Secure Globally Important Biodiversity”. As basis for this framework document, a social assessment was carried out in the field during four months, from June toSeptember 2010, with visits to two expired logging concessions seeking ERC licenses in the East Halmahera District (North Mollucas) and the Pohuwato District (Gorontalo, Sulawesi) as well as Focus Group Discussions (FGD) held with participants from indigenous peoples’ organizations, Ministries, government agencies and environmental organizations. This framework document is designed to assist ERC project managers in developing a site specific Indigenous Peoples Plan safeguard instrument that will meet the needs of the GOI, the WB and the project. Technical assistance to a select number of Ecosystem Restoration Concessions (ERCs) is expected to be channelled through the World Bank, which means the project and those select ERCs must adhere to the Bank’s Safeguard Policies: “The objective of these policies is to prevent and mitigate undue harm to people and their environment in the development process. These policies provide guidelines for bank and borrower staff in the identification, preparation, and implementation of programs and projects” (

Indigenous Peoples Policy Objectives

  1. The World Bank’s Indigenous Peoples Policy is found in Operational Plan (OP) 4.10. This policycontributes to the Bank's mission of poverty reduction and sustainable development by ensuring that the development process fully respects the dignity, human rights, economies, and cultures of Indigenous Peoples (IP). For all projects that are proposed for Bank financing and affect IPs, the Bank requires the borrower to engage in a process of free, prior, and informed consultation. The Bank provides project financing only where this consultation results in the affected IPs offering broad community support to the project. Such Bank-financed projects include measures to (a) avoid potentially adverse effects on the Indigenous Peoples’ communities; or (b) when avoidance is not feasible, minimize, mitigate, or compensate for such effects. Bank-financed projects are also designed to ensure that the Indigenous Peoples receive social and economic benefits that are culturally appropriate and both gender and inter-generationally inclusive (
  2. Safeguard policies concerning the traditional community applies if a project has direct or indirect impacts toward basic rights, livelihood systems, or the culture of traditional community, as well as affecting a place of living, natural resources or culture that was possessed, applied, occupied or claimed by the traditional community as their land.

Program Description

  1. In Indonesia’s production forests there are areas of high biodiversity value. Sixty million ha of land, about 44% of Indonesia’s national forest estate, is classified as permanent production forest. Production forest is the predominant forest category in the lowlands and in areas where protected area coverage is low. It forms important biological corridors between protected areas, but is also an important habitat in its own right.These areas are outside the traditional protected areas, meaning there is a huge potential for developing alternative models of forest management that integrate economic and biodiversity conservation objectives.
  2. As part of the Indonesian MoFr’s committment to promoting sustainable forest management, the licences of over 163 poorly-managed concessions have been cancelled and the operations of others have been suspended since 2002. However,at present nearly half of the production forest estate (i.e. 30 million ha) is not covered by any kind of exploitation licence, making it prone to illegal exploitation. In order to reverse this trend, the Forestry Department has created a new policy framework that allows licenses for ecological restoration to be granted for logged-over concessions. Known as an ‘Ecosystem Restoration’ license (UUHHK-RE) the concession holder has a initial 60 year permit underwhich the concession holder must return the forests to its ‘natural equilibrium’. There is a moratorium on cutting, but concession holders are allowed to develop non-timber forest products (NTFPs) and Environmental Services such as ecotourism and carbon sequestration. Table 1 presents a list of some ER companies and their proposed activities.[1] As can be seen from the list, the majority of applicants plan to use the ERC license as a means to enter the carbon markets. Other uses of the forest zone include ecotourism, biodiversity conservation and education. In those cases where there are IPs, the project holders will need to ensure that IPs rights and needs are taken into account.

Table 1. List of ecosystem restoration companies and their proposed business activities

Company Name / Location / Ha / Business Commodity
Ecosystem Services / Use of Forest Zone / Biodiversity / Non-TimberForest Product
Rimba Raya Conservation / Seruyan, Kalimantan Tengah / 101.730 / Carbon
Restorasi Habitat Orang Utan (PT RHOI) Indonesia Unit III / Murung Raya, Kalimantan Tengah / 68.089 / Carbon / Ecotourism / Adopt a tree, adopt a an Orang Utan / Not explained
Rimba Makmur Utama / Kota Waringin Timur and Katingan, Kalimantan Tengah / 227.260 / Carbon / Ecotourism / Education and Training / Rotan, jelutung, gemor
Indo Carbon Lestari / Pulang Pisau and Katingan, Kalimantan Tengah / 198.200 / Carbon* / Jelutung, sagu, rubber, damar mata kucing
Ekosistem Katulistiwa Lestari / Kubu Raya, Kalimantan Barat / 41.258 / Carbon, Payment for Environmental Services (PES)* / Ecotourism / Bamboo, getah jelutung, getah pulai, rubber, crocodile farming,
Restorasi Ekosistem Indonesia (REKI) / Musi Banyuasin, Sumatera Selatan and Batanghari, Sarolangun, Jambi / 53.657 + 49.185 / Carbon, water / Ecotourism / Training and education, Trust fund / Rotan, gaharu, honey, medicinal plants
  1. The IP policy emphasizes the importance of IP participation because local knowledge is required to identify, design and plan the implementation of practical mitigation measures. It is especially important as the success of ERCs depends on community support and action, both in implementing mitigation measures and in monitoring their success. As Table 2 below indicates, more often than not, there will be communities living along the boundary of ER concessions. Not to mention those that are living within the concession’s boundaries. In most cases only a small portion of the local communities can be classified as IPs. As will be discussed below, concession holders will need to map out community interactions with the forest concession and then develop mechanisms to reach an agreement on the use of forest resources. The table below is illustrative of the issue and not a list of ERCs necessarily related to this project

Table 2. Ecosystem restoration sites and surrounding communities

Company Name / Location / Ha / No. of Villages / Total Population (person)
Rimba Raya Conservation*) / Seruyan, central Kalimantan / 101.730 / 25 / 51,613
Restorasi Habitat Orang Utan Indonesia Unit III / Murung Raya, central Kalimantan / 68.089 / 5 / 1,990
Rimba Makmur Utama / Kota Waringin Timur dan Katingan, central Kalimantan / 227.260 / 20 / 33.427
Indo Carbon Lestari / Pulang Pisau dan Katingan, central Kalimantan / 198.200 / 31 / 58.758
Ekosistem Katulistiwa Lestari / Kubu Raya, west Kalimantan / 41.258 / 4 / 16.888
Restorasi Ekosistem Indonesia (REKI) / Musi Banyuasin, Sumatera Selatan dan Batanghari, Sarolangun, Jambi / 53.657 + 49.185 / 10 / 24.082
  1. The target groupsare Indigenous Peoples, but in the case of Indonesia, two broad categories of IPs can be identified:
  2. MasyarakatAdat /Adat communities/Customary law communities

These are based on lineage or locality and are bound by customary law. Characteristics of these communities include: (i) self identification as a distinct indigenous cultural group, (ii) collective attachment to ancestral territories and to the natural resources in the territories; and (iii) and customary cultural, economic, social, or political institutions.

  • KomunitasAdatTerpencil (KAT)/Isolated and Vulnerable communities (IVPs):

This is a government-designated category of customary law communities that live in isolated areas.

The characteristics attributed to these communities include: (i) collective attachment to ancestral territories and to the natural resources in the territories; (ii) customary cultural, economic, social, or political institutions; (iii) an indigenous language. They are also identified by government as: (i) having a subsistence economy, (ii) using simple tools and technology, (iii) having a high dependence on the environment and local natural resources, and (iv) having restricted access to social, economic, and political services.

Project Development Objective and Project Components

  1. The objective of the project is to support the implementation of the Government’s policy on Ecosystem Restoration Concessions whilst ensuring that biodiversity and community participation are mainstreamed into ER Concession management practices and business plans.
  1. The project consists of 4 components to be implemented over 4 years:
  • Component 1: Business Development in Ecosystem Restoration Concessions (implemented by Burung Indonesia)
  • Component 2: Policy and Administration of Ecosystems Restoration (proposed to be implemented by Ministry of Forestry).
  • Component 3: Knowledge and Experience (implemented by Burung Indonesia)
  • Component 4: Project Management (implemented by Burung Indonesia)
  • Component 1relates to development of management frameworks and standards for mainstreaming biodiversity considerations into 6 ERCs yet to be identified and component 2 to assisting GOI with ERC policy development. In providing technical assistanceBurungIndonesia (the implementing agency on behalf of MoFr) and the ERC license applicant/holder has to follow the guiding principles below.The ERC license holder/applicant has to make sure that support to ERC policy development is carried out in consultation with IP associations such as AMAN and TELAPAK and IPs representatives and the policy should not have adverse impacts to IP’s livelihoods based on Regulatory Impact Assessment of the draft of that policy.

Guiding Principles

  1. The World Bank’s policy guidelines need to be translated into a practical framework that will guide project managers and field staff in formulating a framework that will assist in decision making. As part of the social assessment and focus group discussions, extensive consultations with indigenous peoples’ organizations, GOI, and environmental organizations have been carried out to identify issues that will need to be taken into account in ERCs seeking technical assistance from the project.
  2. The Harapan Rainforest Ecosystem Restoration Concession is the only concession which is fully operational and as such their experience is central to this document. Nevertheless, there other types of projects such as from PERHUTANI, community forestry, and natural resource management projects with communities living on the borders of national parks which can provide input for this framework. The main lessons is that the process should be clearly defined and monitored properly, involving IPs representatives and IPs supporters NGOs.
  3. Before providing technical assistance to the 6 ER concession license holders/applicants Burung Indonesia will ensure that IPs have been consulted by the ERC manager and actively engaged in all decision-making processes, especially when the ERC intervention poses potential adverse impacts to them as a community. The project must, with absolute certainty,assure that the IPs do not suffer adverse effects during or after project implementation, as well as receive culturally compatible social and economic benefits.
  4. The participating ERCs must ensure at all times that the development processesimplemented by the project foster full respect for the IPs' dignity, human rights and cultural uniqueness.
  5. Broad community support from all affected IPs must be determined in accordance with theirrespective laws and practices, free from any external manipulation, interference andcoercion, and obtained after fully disclosing the intent and scope of the project activity,in a language and process understandable to the community. The conduct of field-basedinvestigation and the process of Free and Prior Informed Consultations, will take into consideration the primary and customary practices ofconsensus-building.
  6. The ERC manager must ensure that none of the activities of the ERC will damage non-replicable cultural property. In cases where i.e. roads, irrigation, etc. will pass through sites considered as cultural properties of the IPs, the ERC manager must exert its best effort to relocate or redesign the project, so these sites can be preserved and remain intact in situ.
  7. The IPs should be consulted to ensure that their rights will not beviolated and that they are compensated for the use of any part of their domain, in amanner that is acceptable to them.
  8. Where ERCs’ operations pose potential adverse impacts on the environment and the socioeconomic-cultural-political lives of these IP communities, IPs must be informed of such impacts and their rights to compensation.
  9. Should IPs grant their approval for ERC operations with adverse impacts, the ERC license holder/applicant must ensure that affected IP communities are included in the development of action plans so they may meaningfully participate in the implementation, monitoring and evaluation of the mitigation measures agreed upon.
  10. Should potential effects be positive or beneficial to the IPs, specific plans shall be made so the benefits are culturally responsive.
  11. Project implementers must adhere to the requirements for documentation of meetings conducted with IP communities, especially those related to the Free and Prior Informed Consultations leading to broad community support of IPs.
  12. IP dedicated meetings shall be conducted for purposes of monitoring and evaluation of mitigation measures.

Indonesian Regulations Related to Rights to Information and IPs

  1. Indonesia has adopted the United Nations declaration of IPs rights and Human Rights
  1. Ecosystem Restoration (ER) is governed by theMinister of Forestry Regulation No. P.61 Menhut-II 2008, “On Provisions And Procedures For Issuing Ecosystem Restoration Forest Timber Utilisation Permits For Natural Forests In Production Forests Through Applications” and PP50/2010. Article 1 states:

a)Production Forest Areas are areas designated and/or established by the Government to be maintained as permanent forests with the primary function of producing forest products.

b)Unproductive production forests are forests designated/allotted by the Minister as locations for ER and/or plantation forest development.

c)ER Timber Forest Utilisation Permits for Natural Forest in Production Forests hereafter referred to as IUPHHK-RE are permits as described in Article 1 number 14 of Government Regulation No. 6 Year 2007 in conjunction with Government Regulation No. 3 Year 2008.

d)ER means efforts to restore biotic elements (flora and fauna) and abiotic elements (soil and water) to a region with native species in order to achieve biological and ecosystem balance.

  1. Government Regulation, 6/2007, Article 1 No. 14, states that IUPHHK Ecosystem Restoration in natural forest isa business permit that is awarded to develop a sitewith important ecosystem functions. The functions can be restored through activities, such as maintenance, protection and ER. These activities can include planting, enrichment, pruning, wildlife breeding, re-introduction of flora and fauna for the purpose of restoring biotic elements(flora and fauna) and non-biotic elements (soil, climate and topography),so that an equilibrium within biota and its ecosystem is accomplished.
  2. None of the government regulations or decrees that are specifically for ER (PP 6/2007 and PP 3/2008 and Minister of Forestry decee No. 61/2008) addresses the rights of traditional communities. Nevertheless as Table 3indicates, there are legal mechanisms that recognize the communities’ right to information before a development program or project is implemented in their region, and freedom to agree or disagree without any pressure.

Table 3. National Laws Relating to Community Rights to Information

Law No. 14/2008 on Public In-formation Transparency / Article 9 requires public entities to publish public six-monthly information periodicals. This information includes information about the public entity, its activities and performance, financial reports and other information regulated by law. This information should be disseminated by means easily accessed by, and in language understandable to, the public.
Article 11 also obliges public entities to provide information to the public at all times. This includes listing all public information under their control, outcomes of decisions made by the public entity, and its considerations, as well as all existing policies, including supporting documents such as predictions of annual expenditure and the public entity’s agreements with third parties.
Law No. 41/1999 on Forestry / In relation to forestry, communities are permitted to provide input on forestry plans, including project plans relating to state forests. Article 68 paragraph 2 states that communities can be informed about plans for forest allocation, forest product utilisation and forestry information; provide information, suggestions, and considerations for forest development; and undertake supervision of forestry development, either directly or indirectly.

(Source: Steni, 2010, p.21)

  1. In addition, thePerhutani objectives (Peraturanpemerintah 14/2001) and Permenhut on Community Forests (HutanKemasyarakatan) objectives and facilitation (Permenhut P37/2001) there is sufficient basis that IPs should be sufficiently consulted and IPs livelihood should be supported by the ecosystem restoration business plan and policies. The main challenge is on the detailed follow-up and monitoring system therefore this framework will focus on the process and common agreement between stakeholders involved.
  1. The regulations that have potential impact to IP’s livelihoods within the ERCs are stated in table 4 below ( in accordance to PP 6/2007 jo PP 3/2008):

Table 4. Activities that are allowed and not allowed to be undertaken in the ER concession

Activities / Regulation / Allowed / Not allowed / Remarks
Ecosystem
Restoration
activities / P.61/Menhut-II/2008 / -Native species / -Non-native species
Utilization of forest area / PP No.6/2007 Article 32 / -Cultivating medicinal plants
-Cultivating ornamental plants
-Cultivating mushrooms
-Breeding bees
-Breeding wildlife
-Breeding swallow bird nests / -No negative impacts towards biophysics and socio-economy
-No mechanical or heavy equipment
-No developing any facilities that change the landscape / Limitation of total area for processing
Non timber products utilization / PP No.6/2007 Article 43 and 49. / - Rattan, sagoo, nipah and bamboo, including planting, harvesting, enrichment, maintaining, and product marketing activities
- Sap, bark, leaves, fruit or seeds and eaglewood, including harvesting, enrichment, maintaining, and product marketing activities / -Protected wildlife and flora stipulated under the Act (UU) No. 5/1990, concerning conservation of natural resources and the ecosystem / For non timber forest products except protected wildlife and flora, a maximum of 20 ton per household.
Ecosystem servicesutilization / PP No.6/2007 Aricle 33 / -Water flow service and water
-Ecotourism
-Biodiversity protection
-Saving and protecting the environment
-Absorbing and/or storing carbon / -No changes to the landscape
-No damage to environmental elements
-And/or not reducing its main function
Timber utilization / PP No.6/2007 Article 31, and 45 / -Timber products harvested to support the development of public facilities for the local community, at a maximum of 50 (fifty) cubic meters, or to fullfilindividual requirements, at a maximum of
-20 (twenty) cubic meters for every household. / -Timber collected is not to be used for any commercial purposes.
  1. The above limitations will have an impact on community groups that utilize the concession area and its products, both timber and non-timber, including water. There are communities that utilize the forests for agricultural purposes but this is not reflected in the ER regulations. Also, activities undertaken by communities that are using land inside the concession needs further clarification, along with the actual impact of these activities for the ecosystem and the accomplishment of equilibrium within the production forest.

Institutional Setting