millennium challenge account-indonesia … challenge account-indonesia green prosperity project ......

MILLENNIUM CHALLENGE ACCOUNT-INDONESIA

GREEN PROSPERITY PROJECT

PROGRAM MANAGEMENT CONSULTANT

ROKAN HULU

DISTRICT READINESS ASSESSMENT (DRA) FOR

PARTICIPATION IN MCA-INDONESIA’S

GREEN PROSPERITY PROJECT

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

Under Contract Number GP-B-001

Table of Contents

i

Table of Contents

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

List of Tables .................................................................................................................................................. ii

List of Figures .................................................................................................................................................. ii

List of Appendices .......................................................................................................................................... ii

Acknowledgements ....................................................................................................................................... iii

Executive Summary ...................................................................................................................................... iv

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

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

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

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

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

3.3.1 Performance for the Period 2011-2013 ..................................................................... 3-2 3.3.2 Development Targets for 2011-2015 .......................................................................... 3-3 3.3.3 Low-Emission Economic Development ...................................................................... 3-4

3.4 Renewable Natural Resources Management ............................................................................. 3-5 3.4.1 District Electrical Conditions ........................................................................................... 3-5 3.4.2 Electricity Potential ............................................................................................................. 3-5 3.4.3 Electricity Development Plan .......................................................................................... 3-7

3.5 District Spatial Plan .............................................................................................................................. 3-8 3.5.1 Protected Areas ..................................................................................................................... 3-8 3.5.2 Cultivation Areas .................................................................................................................. 3-9

3.6 Social and Gender Integration ......................................................................................................... 3-9

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

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

Table of Contents

ii

List of Tables

Table 1 Contributions to Rokan Hulu GDP by economic sectors based on constant prices

from 2011 to 2013. ....................................................................................................................................... 3-2

Table 2 Development targets in Rokan Hulu District. .................................................................................... 3-3

Table 3 Development goals, policies and programs related to low-emission economic

development. ................................................................................................................................................... 3-4

Table 4 Electrical Generation and Use by PLN Ranting Pasir Pengaraian within Rokan Hulu

District, 2010-2012....................................................................................................................................... 3-5

Table 5 Renewable energy power plants in Rokan Hulu District. ............................................................ 3-5

Table 6 Operational comparisons of diesel and biogas power generation. .......................................... 3-7

Table 7 Gender-based programs in the medium term development plan for Rokan Hulu

District. .............................................................................................................................................................3-10

List of Figures

Figure 1 Regional income per capita in Rokan Hulu District in 2010-2013. .......................................... 3-3

List of Appendices

Appendix A Map of Rokan Hulu District

Appendix B Photographs of Rokan Hulu Landscape

Appendix C Summary of Field Observation Activities

Executive Summary

iii

Acknowledgements

During the District Readiness Assessment in Rokan Hulu, PMC team received full support from Bappeda staff: Pak Indra JP ( Secretary of Bappeda ), Pak Azhar Mawardi (Head of Cooperation and Development division Bappeda), Pak Fakhruddin (Head of Economic Affairs), Pak Jon Kenedy (Head of Social and Cultural division Bappeda), Pak Afrizal (Head of Physical and Infrastructure), and Pak Rafit ( Head of Sub Division of Natural Resources, Transportation and Telecommunications Agency). Support was also provided by staff from SKPD in the local government: Pak Harisman (Head of Sub Division of Planning, Evaluation and Reporting Forest Service), Ibu Lidya Anna (Staff of Regional Environmental Agency), Pak Bahroina (Head of Sub Division Office of Family Planning and Women's Empowerment), Pak Anang P Putra (Secretary of State for Integrated Services Licensing and Investment), Pak Arkom (Head of Energy Department of Mining and EnergyAgency), Pak Erwan (Secretary of the Office of Food Crops and Horticulture), Pak Zemy (Head of Public Relations Sub Division, the Secretariat of the Regional Government), and Pak Dani (Law Division of Secretariat of the Rokan Hulu Local Government. Particular support was provided by MCA-Indonesia by Pak Sigit, Pak Arief Setyadi and Wawan Heryawan who provided initial information and the field team’s letter of support.

Executive Summary

iv

Executive Summary

This report provides a rapid district readiness assessment (DRA) of the capacity, commitment, and

investment opportunities of Rokan Hulu District, Riau Province, to support environmentally

sustainable and low-carbon economic growth through the MCA-Indonesia Green Prosperity Program

(GPP). This assessment included a field visit from August 18 to 22, 2015.

The objectives of this rapid assessment were to assess the level of readiness of Rokan Hulu District

for GPP activities, and specifically examined: political conditions, institutional capacity, regulatory

frameworks, social and gender analysis, and required conditions under the Millennium Challenge

Compact. The result of this assessment will be used to prioritize the 12 districts for signing of MoUs

with MCA-Indonesia for project implementation.

Rokan Hulu District is located between 100° to 101°52’ east longitude and 0° to 1°30’ north

latitude. Rokan Hulu District is part of Riau Province which is located on Sumatera Island, with a

total land area of 8.521,70 km2, or approximately 7.90% of Riau Province area. Administratively,

the provincial government is divided into 16 sub-districts, 6 kelurahans and 147 villages.

Pasir Pengaraian City is accessible by land (located about 170 km or approximately a four hour

drive) from the provincal capital in Pekanbaru, via Bangkinang, Ujung Batu and then to Pasir

Pangaraian. Currently however, because of road construction, travel time has increased to six hours.

The populationn of Rokan Hulu in 2013 was 545,483, consisting of 280,317 men (51.39%) and

265,166 people women (48.61 %), resulting in a sex ratio of 106:100 (men:women). The total

population is distributed among 16 sub-districts with the highest population density in the Ujung

Batu Sub-district with 541 people/km2 and the lowest population density in Rokan IV Koto Sub-

District with 25 people/km2.

Economic growth in Rokan Hulu is reflected by the increase in Gross Domestic Product (GDP)

throughout 2012-2013, including the oil and gas sector based on constant prices set in the year

2000. GDP in 2012 was Rp. 3,120 billion, and increased to Rp. 3,323 billion in 2013. Similarly,

economic growth increased from 7.48% in 2012 to 7.54% in 2013. Agriculture is a dominant sector

contributing to GDP, and amounted to a 53.56 % contribution to GDP in 2013. The agricultural

sector's contribution to GDP in 2013 compared to 2012 decreased slightly, from 54.45 % to 53.56 %

in 2013. Income per capita of the Rokan Hulu population increases from 2010 to 2013. Per capita

income of Rp 4,894,707 in 2010 increased to Rp 4,969,866 in 2011, corresponding to an increase of

1.5 %. In 2012, per capita income of Rp 5,178,808 increases to Rp. 5,339,925 in 2013, corresponding

to an increase of 3%.

Based on the criteria determined by the DRA described in Section 4, Rokan Hulu received a score of

51 (77 %) of a possible maximum 66 points. This is a relatively high score and indicates a high

commitment and readiness to receive GPP investment. Aspects that received the minimum score of 1

included: contribution of NGOs in the development of a low-emission economy, environmental

services (PES) and local incentives for green investments, and spatial planning is currently at the

draft stage. However, the Local Government of Rokan Hulu stated an interest in the GPP program

especially for the development of new renewable energy made from a liquid waste called Palm Oil

Mill Effluent (POME). In relation to Participatory Land Use Planning, only Task#1 (Participatory

Boundary Mapping) is required in Rokan Hulu District.

Section 1 Introduction

1-1

Section 1 Introduction

1.1 Background MCA-Indonesia, under the Green Prosperity Project (GPP), has pre-selected 12 districts (in addition

to the previous four districts as the pilot project areas) within six provinces as target areas for

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

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

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

to support environmentally sustainable and low-carbon economic growth. Rapid District Readiness

Assessments (DRA) are intended to ensure that these targeted districts can effectively support GPP

activities, and to prioritize these 12 districts for signing of Memoranda of Understanding (MOU) with

MCA-Indonesia. These DRAs are undertaken by the Project Management Consultant (PMC)

supporting MCA-Indonesia. This report represents the first rapid DRA undertaken for the GPP by

PMC, for Rokan Hulu District, Riau Province.

1.2 Objective Objectives of this DRA were to:

Assess the level of district readiness related to: political conditions, institutional capacity,

regulatory frameworks, social and gender analysis, and conformance with Millennium Challenge

Compact conditions;

Support MCA-Indonesia in prioritizing the 12 pre-selected districts for MOU signing; and

Assess investment opportunities within the district for environmentally sustainable and low-

carbon economic growth.

Section 2 Methodology

2-1


Activities and methods used for this assessment are described below:

Secondary data provided by PMC team for Rokan Hulu included:

– RTRW Draft of Rokan Hulu District in 2012 – 2032;

– Medium Term Development Plan (RPJMD) Rokan Hulu District in 2011-2016;

– Long Term Local Development Plan (RPJPD) Rokan Hulu District in 2005-2025;

– Regional Regulation No. 2 of 2004 on Licensing Liquid Waste Disposal and Utilization of

Wastewater from Oil Industry In the Land ;

– Regional Regulation No. 347 of 2010 on City Forest Area Designation;

– Regional Regulation N0. 26 of 2012 on the Use of Local Language and Malay Clothes For

Employees of Local Governments;

– Decree No. 45 of 2012 on the Regional Action Plan to Accelerate Achievement of the

Millennium Development Goals of Rokan Hulu District 2012-2015;

– Regent Decree No. 489 / Setda/ 76/2015 on Information and Documentation Management

Officer and Information and Documentation management;

– Strategic Plan for Regional Development Planning Board (Bappeda) 2011-2016;

– Strategic Plan for the Department of Forestry and Agriculture 2011-2016;

– Strategic Plan of the Department of Food Crops and Horticulture 2011-2016;

– Strategic Plan Board of Family Planning and Women's Empowerment 2011-2016;

– Strategic Plan 2011-2016 Regional Environmental Agency;

– Strategic Plan for Integrated Service Agency Licensing and Investment 2011-2016;

– Strategic Plan 2011-2016 the Department of Mines and Energy;

– Strategic Planning Department of Spatial Planning and Human Settlements 2011-2016;

– Regional Secretariat Strategic Plan 2011-2016

– Rokan Hulu in Figures 2014

– Catalog PERDA- PERDA Rokan Hulu 2001 - 2015;

– Information from the Internet, including Rokan Hulu sites: http://rokanhulukab.go.id/;

http://bappeda.rokanhulukab.go.id


2-2

Field visit and interviews. A field visit to Rokan Hulu District was conducted by the PMC team

from August 18 to 21, 2015, to better understand the local context for potential GPP investment.

Target areas visited included the general landscape of Rokan Hulu, agriculture/agro-forestry

resources (especially oil palm plantations), and overall conditions in Rokan Hulu including

infrastructure and land uses. As well, the PMC team met and conducted interviews with the local

Bappeda (District Planning and Development Board).

Maps of rokan Hulu are presented in Appendix A, photographs taken during the field visit are

presented in Appendix B, and minutes of meetings with the above organizations are presented in

Appendix C.

Data analysis. Descriptive analysis was conducted following terms of reference provided by

MCA-Indonesia, and focused on components of: policy, regulation, institutional capacity, social

conditions and gender, and Compact requirements. A description of each component is provided

in the matrix presented in Section 4.

Section 3 General Description of The District

3-1


3.1 Location and Accessibility Rokan Hulu is located between 100° and 101°52 ' east longitude, and between 0° and 1°30' north

latitude. Rokan Hulu is part of Riau province, located on the mainland of Sumatra, and has a land

area of 8521.70 km2, or approximately 7.90% of the total area of the province of Riau.

Adminitratively, the provincial government is divided into 16 sub-districts , 6 kelurahans and 147

villages.

Rokan Hulu has varying topography, ranging from lowland in the north to highland in the south?,

with elevations ranging from 100 m to over 1,000 m above sea level. Areas with elevations between

100 m to 500 m cover approximately 80 % of the district; elevations between 500 m and 1,000 m

cover 17.5 % of the district; and elevations over 1,000 m cover about 2.5 % of the total area of

Rokan Hulu District.

In Rokan Hulu District, there are two major rivers: Rokan Kanan (Right Rokan) and Rokan Kiri (Left

Rokan). As well, several smaller rivers within the district include the Dapung, Dantau, Ngaso, Batang

Lubuh, Batang Sosa, Batang Kumu and Duo Rivers. The upstream section of the Rokan River is

approximately 100 km long, with an average depth of 6 m and an average width of 90 m. The

downstream section of this river passes through Rokan Hilir District. The upstream Rokan River

flows through the Rokan IV Koto District, Pendalian IV Koto, Tandun, Kunto Darussalam, Rambah,

Tambusai, Kepenuhan, and Kepenuhan Hulu sub-districts. Some parts of Rokan Hulu River are still

used for transportation, clean water sources and aquaculture.

Rokan Hulu’s climate is strongly influenced by changes in wind direction. Based on wind direction,

seasons in Rokan Hulu district are divided into four periods: 1) January to March, where winds blow

from the north and northeast, with occasional rain and moderate air temperatures; 2) April to June,

with winds from the northeast/southeast , little rain, and higher air temperatures (approximately

34° C); 3) July to September, with winds blowing from the southeast, relatively high rainfall, and

moderate temperatures (approximately 30° C) , and 4 ) October to December, when wind blows

from the west/north, with high rainfall and relatively cold damp temperatures (particulary at night).

Overall, average rainfall is 193.2 mm per year, with average humidity of 90.4 %, and temperatures

averaging at 25.80° C.

Pasir Pengaraian City is accessible by land from the city of Pekanbaru (approximately 170 km), via

Bangkinang, Ujung Batu and then to Pasir Pangaraian City, in approximately four hours of driving.

However recently, because of road construction, travel time has increased to 6 hours (map of Rokan

Hulu is presented in Appendix A1). In early 2014, Rokan Hulu district government, established air

service out of the North Tuanku Tambusai Airport (in Pasir Pengaraian), with regular daily flights

from Pasir Pengaraian to Pekanbaru at 13:00 hrs, and from Pekanbaru to Pasir Pengaraian at 14:00

hrs every Monday.

3.2 Demographics The total population of Rokan Hulu in 2013 was 545,483, consisting of 280,317 men (51.39 %) and

265,166 women (48.61 %), resulting in a sex ratio of 106:100 (men:women). The total population is

distributed among 16 districts with the highest population density in the District of Ujung Batu with

541 people/km2, and the lowest population density in the District of Rokan IV Koto, with

approximately25 people/km2


3-2

The Rokan Hulu population age structure in 2013 was: age group (< 15 years): 187 306 people

(34.34 %); age group (15-55 years): 321,639 people (58.96%); and age group (> 56 years): 36,538

people (6.70%). The livelihood of people in Rokan Hulu is predominantly within the agricultural

sector (85 %), followed by the services/government sector 7.6 %, trade 3.0%, industry 2.5% and

transportation 1.9 %.

3.3 Regional Economy 3.3.1 Performance for the Period 2011-2013 Rokan Hulu economic growth in this period is reflected by an increase in the Gross Domestic Product

(GDP) including the oil and gas sector on the basis of constant prices set in 2000. In 2012, Rokan

Hulu GDP was approximately Rp. 3,120 billion, and increased in 2013 to Rp. 3,323 billion. Economic

growth showed an increase from 7.48% in 2012, to approximately 7.54% in 2013. The agricultural

sector comprises 53.56 % of GDP, putting this sector as the largest contributor to GDP in 2012 and

2013. The agricultural sector's contribution to GDP decreased slightly from 54.45 % in 2012, to

53.56 % in 2013. Contributions of each sector to GDP are listed in Table 1.

Table 1 Contributions to Rokan Hulu GDP by economic sectors based on constant prices from 2011 to 2013.

No Sector 2012 2013

( % )

1 Agriculture 54.45 53.56

2 Mining & Excavation 0.85 0.86

3 Processing Industry 20.37 20.90

4 Electricity, Gas, and Dringking Water 0.06 0.06

5 Building /Construction 4.51 4.54

6 Trading, Restaurant & Hotel 5.64 5.79

7 Transportation & Communication 3.01 2.98

8 Finance,Tenancy,&Services Bussiness 1.79 1.84

9 Services 9.32 9.47

Amount 100 100

Source : process from BPS Kabupaten Rokan Hulu 2014

Another economic indicator is income per capita which increased from 2010 to 2013. Per capita

income of was Rp. 4,894,707 in 2010 and increased to Rp 4,969,866 in 2011, resulting in a 1.5 %

annual increase. In 2012, per capita income was Rp. 5,178,808 and increased to Rp. 5,339,925 by

2013, an increase of 3 %. The trend of income per capita increase is illustrated in Figure 1.


3-3

Figure 1 Regional income per capita in Rokan Hulu District in 2010-2013.

Source: BPS Kabupaten Rokan Hulu 2014

However, the decline in world oil prices which occurred at the end of 2014 has not been accounted

for in this economic performance analysis of Rokan Hulu. Revenue-sharing (Dana Bagi Hasil/DBH) of

oil and gas decreased from Rp. 460 billion in 2014 to 289 billion in 2015.

3.3.2 Development Targets for 2011-2015 Rokan Hulu District has set development targets in the medium-term development planning

(RPJMD) document. From the base condition (2012), Rokan Hulu District has targeted the

development achievements listed in Table 2.

Table 2 Development targets in Rokan Hulu District.

No Local Development Performance Indicators

Performance

condition in the

early period of

RPJMD

2012

Performance condition in the

end period of RPJMD 2016

1 Economic Growth with Oil and Gas (%) 5.08 4.46

2 Economic Growth without Oil and Gas (%) 6.72 8.20

3 PDRB Oil and Gas on the basis of a constant price (billion)

2.879 3.187

4 PDRB Oil and Gas on the basis of current price (billion)

14.130 19.026

5 Human Development Index 71.94 74.81

6 Poor Citizens (%) 10.28 4.50

7 Education, literacy rates 99.50 100

8 Health , life expectancy Rates 69.80 72.0

9 Open Unemployment Rates (%) 3.37 3.0

Source: RPJMD Kabupaten Rokan Hulu 2011-2016

4,894,707

4,969,866

5,178,808

5,339,925

4,600,000

4,700,000

4,800,000

4,900,000

5,000,000

5,100,000

5,200,000

5,300,000

5,400,000

2010 2011 2012 2013

Pendapatan perkapita regional (Rp/tahun)


3-4

3.3.3 Low-Emission Economic Development

Rokan Hulu District has included low-emission development in the Medium Term Development Plan

(RPJMD) from 2011 to 2016. The plan includes goals, policies, and regional development programs

aimed at improving human welfare and reducing environmental risks. These objectives are

summarized in Table 3.

Table 3 Development goals, policies and programs related to low-emission economic development.

Goals Policy Direction Development Program

Continuing the realization of economic empowerment.

Increased reforestation, Industrial Plantation Forestry (HTI) and replanting of commercial forestry products.

Forest and land rehabilitation →

manufacturing of seeds/seedlings for

forestry, reforestation and forest

rehabilitation.

Protection and conservation of forest

resources → Socialization on the

prevention and control of forest fires and

land.

Continuing the realization of improving the quality of human resources.

Control of the use of green open space (RTH) in urban and rural areas.

Management of green open space (RTH)

→ structuring RTH

Control of pollution and environmental

destruction → monitoring environmental

quality, environmental impact

assessment, EIA coordination and

increased public participation in

environmental control.

Protection and conservation of natural

resources → damage control and forest

land.

Increased pollution control → motor

vehicle emissions testing, emissions

testing/air pollution caused by industrial

activity and extension and control of

pollution and contamination.

Improving the quality of and access to

information resources and environment

→ organizing the environmental status of

the region.

Continuing the realization of infrastructure availability including transportation, health, and education, economic and social.

Increasing feasibility and rehabilitation of water resources infrastructure, and efficient use of water and increasing the security of rivers.

Development, management and conservation of rivers, lakes and other water resources → rehabilitation of degraded land, catchment areas of rivers and lakes.

Develop transportation facilities and infrastructure that supports the distribution of goods and services.

Increasing feasibility of operating a motor vehicle → development and procurement of motor vehicle testing centers.

Improve management capacity for improving environmental quality.

Improving performance of waste management system→ infrastructure and waste treatment facilities and the improvement of operatiosn and maintenance of infrastructure and waste facilities.

Source: Medium Term Development Plan Rokan Hulu 2011-2016


3-5

3.4 Renewable Natural Resources Management 3.4.1 District Electrical Conditions Electricity demand is increasing every year for both household and commercial consumers. One

source of electricity in Rokan Hulu is from two diesel power plants in Tanjung Belit, one diesel

power plant in Sungai Kuning and one Hydropower dam in Koto Panjang (Kampar District).

Electricity is distributed by PLN Ranting Pasir Pengaraian with a production of 110,459,752 kW and

peak load of 12,091 kW. Electricity supplies and distribution in Rokan Hulu is summarized in Table

4.

Table 4 Electrical Generation and Use by PLN Ranting Pasir Pengaraian within Rokan Hulu District, 2010-2012.

Types Units 2010 2011 2012

Generating Unit Numbers 6 6 4

Installed Power kW 20,700 28,700 34,500

Maximum Power kW 16,560 23,060 30,000

Production kW 57,014,869 80,296,549 110,459,752

Electricity Sold kWh 46,934,669 58,428,488 82,047,312

Peak Load kW 5,658 9,027 12,091

Consumer Customers 22,998 38,053 49,037

Source: Rokan Hulu District Statistics, 2014

Compared to total households in Rokan Hulu (124,207 households), these data show that only 39.5

% of households in this district are registered electricity customers.

3.4.2 Electricity Potential

Rokan Hulu District has promising renewable natural resources to support sustainable development.

Potentially important renewable natural resources in Rokan Hulu, for GPP, include micro-

hydropower, solar panel and biogas power plants, as listed in Table 5.

Table 5 Renewable energy power plants in Rokan Hulu District.

No Power Plant Capacity Year of

Manufacture Location

Home Construction

Description

I. PLTMH

1 Sei Kijang 40 KVA 2005 Desa Cipang Kiri Hulu, Kec. Rokan IV Koto

APBD

Provinsi RIAU Working

2 Rokan Timur KVA 2010 Desa Rokan Timur

Kec. Rokan IV Koto

APBD

Provinsi RIAU Not working

3 Banjar Datar KVA 2010 Desa Cipang Kiri Hilir

Kec. Rokan IV Koto

APBD

Provinsi RIAU Working

4 Pemandang KVA 2009 Desa Pemandang

Kec. Rokan IV Koto

APBD

Provinsi RIAU

Working

5

Pintu Kuari

10 KVA

20 KVA

2012

Desa Cipang Kiri Hulu

Kec. Rokan IV Koto

Swadaya Masyarakat

Working

6 Sei Kijang 10 KVA 2013 Swadaya Working


3-6

No Power Plant Capacity Year of

Manufacture Location

Home Construction

Description

Masyarakat

II. PLTS

1

Kec. Rokan Iv Koto

2450 KWP

2004

Kelurahan Koto Ruang

Kec. Rokan IV Koto

APBN

Spread

15 KWP 2008 Dusun Batas Desa Cipang Kanan

APBD I

Centralized

15 KWP 2014

Dusun Lubuk Ulek/ Desa Cipang Kiri Hulu

Under construction/centralized

2

Kec.Rambah Samo

18 KWP

2007

Desa Pasir Baru

Kec. Rambah Samo

APBN

Centralized/Not working

3

Kec. Rambah

6 KWP 2009 Tanjung Belit Selatan APBD I Spread

1000 KWP 2008 Tanjung Belit Timur/ Barat APBN

Centralized/Not working

2450 KWP 2004 APBD I Spread

4

Kec. Rambah Hilir

1500 KWP 2012 Dusun Tanjung Betung APBN Centralized

2012 Okak Dalam APBN Spread

2013 Sei Dua Indah APBD II Spread

2013 Desa Rambah APBD II Spread(1 unit upp rohul)

15 KWP 2012 Desa Serombou Indah APBD I Centralized

III PLTBiogas

Kec. Tambusai Utara 1 MW 2013 Desa Rantau Sakti APBN Working

Source: Mining and Energy Agency Rokan Hulu District 2014

In Rokan Hulu District, there are approximately 60 private palm oil companies with extensive

estates covering a total of 157,071 ha. There are 34 mills (PKS) with a combined oil processing

capacity of between 30-80 tons/hour. The palm oil industry generates liquid waste called Palm Oil

Mill Effluent (POME), which contains organic compounds that can be converted into methane gas

and potentially used as a power plant fuel. One example is the Biogas Power Generation (PLTBg)

Rantau Sakti facility, located in Rantau Sakti Village, North Tambusai Sub-District. PLTBg is capable

of producing 1 mW of electricity. Currently, PLTBg Rantau Sakti is serving up to 1,730 households in

three rural regions, consisting of Rantau Sakti Village (1,113 households), Rantau Kasai Village (264

households), and M Sakti Village (353 households). This PLTBg operation provides benefits to the

people in surrounding villages, because in addition to cheaper prices, electricity from PLTBg can be

provided for 24 hrs/day. Conversely, diesel power plants provide electricity for only 12 hrs/day

(usually evenings). A comparison between the price of diesel and biogas power generation is

provided in Table 6, which illustrates the lower price of biogas electricity compared to diesel-

generated electricity.


3-7

Table 6 Operational comparisons of diesel and biogas power generation.

Operation Average bill Rp/customer

Price Rp/kWh

Diesel 120,000,- 4,000,-

Biogas 45,000,- 1,900,-

Differences 75,000,- 2,100,-

PLTBg Rantau Sakti has been running for one year and is managed by village communities through

village-owned enterprises (BUMDesa Rantau Sakti) in conjunction with the associated company (PT.

Pasadena Engineering Indonesia). Additionally, local authorities, village administration and palm oil

mill companies benefit from this PLTBg operation. The PLTBg electricity supply has reduced the

need for electricity procurement, especially in surrounding villages. For palm oil companies (MCC),

POME utilization greatly reduces the cost of wastewater management, which is usually built around

the plant in the form of a waste water management installation (WWTP).

PLTBg is a pilot project developed by the Mining and Energy Agency (Distamben) of Rokan Hulu

with the support of the Ministry of Energy and Mineral Resources through the State Budget (APBN)

2013. District government (represented by Distamben) collaborates with the palm oil company PT

Arya Rama Initiative (PT ARP) as a provider of POME.

3.4.3 Electricity Development Plan

The draft spatial plan (RTRW) for Rokan Hulu District 2012-2032, states that the government will

build facilities and infrastructure network systems, including the development of an

energy/electricity network. These electricity development plans include:

1. Development of Hydroelectric Power Plants (PLTA) :

Rokan Kiri River, in Lubuk Bendahara Village (Kec. Rokan IV Koto), capacity 132 MW

Rokan Kanan River, in Sibodak Village, Rambah Sub-district, capacity 56 MW

2. Development of Steam Electric Power Plants (PLTU) :

Tanjung Belit, Tanjung Belit Village, Rambah Sub-District, capacity 10 MW and

North Tambusai, Mahato Village, North Tambusai Sub-district, capacity 2 MW

3. Development of High Voltage Substation (GITT) distribution at Rambah Village, Rambah Hilir Su-district;

4. Optimizing Solar Power Generation (PLTS) :

Rokan Koto Ruang Village (Rokan IV Koto Sub-district), capacity 85 watt peak;

Pasir Baru Village (Rambah Samo Sub-district), capacity 1.3 KW

Tanjung Belit VIllage (Rambah Sub-district), capacity 85 watt peak;

Sialang Jaya Village (Rambah Sub-district), capacity 50 watt peak; and

Sontang Village (Bonai Darussalam Sub-district), capacity 85 watt peak.

5. Optimizing of Micro Hydro Power Plants (PLTMH) :

Sei Kijang Village, Cipang Kiri Hulu Village, Pemandang, Rokan Timur Village and Cipang Kiri Hilir Village (Rokan IV Koto Sub-district), each with a capacity of approximately 20 kW.


3-8

Energy network systems to increase power generation capacity are developed using the following criteria:

1. Supporting the availability of electrical power supply in the region for the benefit of urban settlements and rural areas;

2. Supporting the use of high-tech energy generation options to reduce dependence on nonrenewable energy sources; and

3. Choosing locations that are safe from natural hazards, and safe for other activities (e.g., not located in protected areas).

The development of an electrical energy network system is defined by the following criteria:

1. Supporting the availability of electrical power in the region for the benefit of urban

settlements and rural areas; and

2. Supporting use of high-tech generation options to reduce dependence on non-renewable

energy sources.

3.5 District Spatial Plan Description of the spatial pattern refers to the draft Spatial Plan (RTRW) Rokan Hulu 2012 to 2032.

The spatial plan is currently in the draft stage, and is not yet formalized consistent with district

regulations (PERDA). In this draft, spatial patterns of Rokan Hulu are divided into the following

criteria:

3.5.1 Protected Areas

Protected areas are areas defined by the primary function of protecting environmental sustainability

that includes natural and artificial resources. Proper management of protected areas can reduce the

level of danger posed by natural disasters such as floods, landslides, silting of dams, and drought. In

addition to natural disasters, damage to a protected area may also have social consequences as a

result of loss of life and other assets. Protected areas include:

1. Areas That Provide Protection for the adjacent / downstream areas in Rokan Hulu:

Protected Forest (69,458.70 ha): Mahato River (28,800 ha in North Tambusai and

Tambusai sub-districts); Suligi Hill (23,731 ha in Rokan IV Koto, Ujung Batu, Tandun,

Kabun and Pendalian IV Koto sub-districts); Rokan River (16,254 ha in Rokan IV Koto and

Pendalian IV Koto sub-districts);

2. Local Protected Areas:

River buffer (30,517.75 ha): Rokan Kanan Creek and Kiri River, located in Pendalian IV Koto, Bonai Darusalam, Rambah, Rambah Samo, Tambusai and North Tambusai sub-districts;

Area around the reservoir and mini-reservoir (embung): Embung Bukit Suligi (5 ha, in Tandun Sub-district); Cipogas Reservoir (10 ha, in Rambah Sub-district);

Green Open Space (RTH): Regional Activity Center (PKW), Local Activity Center (PKL), Promotion Local Activity Center (PKLp), Area Service Center (PPK), Environment Service Center (PPL).

3. Nature Reserve Area, Nature Conservation, and Heritage:

Major forest area (1,341 Ha), in Bangun Purba and Rambah.


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Natural heritage and science areas distributed across Rokan Hulu: Public School, local government office, Rokan Hulu Vice Regent Office Home, Harangan house, Suri Andung Jati cemetery, Fort Tebing Tinggi, (Rambah Sub-district), Tombs of Rambah Kings (Rambah Hilir Sub-district), Fort Tujuh Lapis/Seven-layers (Tambusai Sub-district), Tombs of Rokan kings (Rokan IV Koto Sub-district);

4. Natural Disaster Prone Areas:

Prone to Landslide: Bangun Purba, Pendalian IV Koto, Rambah, Rokan IV Koto, Kabun and Rambah Samo sub-districts.

Prone to flood: Bangun Purba, Kepenuhan, Kepenuhan Hulu, Bonai Darussalam, Kunto Darussalam, North Tambusai, Tambusai, Rambah, Rambah Hilir, and Ujung Batu sub-districts.

5. Other Protected Area:

Arwana Conservation Area (3,814.40 Ha) in North Tambusai Sub-district.

3.5.2 Cultivation Areas

Cultivation areas are areas defined by cultivation as the main function. Development areas set aside based on the draft document spatial RTRW 2012-2032 Rokan Hulu include:

Production Forest Area: limited production forest (132,689.85 ha); permanent production

forests ( 43,258.33 ha ); and convertible production forest (53,801.39 ha) ;

Community forests: 23,077.88 hectares;

Plantation areas: large plantations ( 192,686.08 ha ); community plantations (123,657.00 ha) ;

Agricultural Region: wetlands (23,842.39 ha); dry land (77,735.52 ha); and livestock (1,899.04

ha);

Fishing Zones: 637.07 ha;

Mining areas: 9,355.85 ha;

Industrial Areas: Large Industries (625.07 ha ); small – medium sized industries (62.11 ha);

Tourism Region: an area of 472.60 ha;

Residential: urban (13,612.86 ha); and rural areas (26,878.73 ha);

Trade and Services areas: (763.53 ha);

Commercial areas: (1,041.67 ha); and

Other areas: the airport (1,067.27 ha).

3.6 Social and Gender Integration Rokan Hulu District has established the Agency for Family Planning and Women's Empowerment

(BKB & PP) enforced through the District Regulation (PERDA) No. 4 of 2011. The main task of this

institution is to carry out the preparation and implementation of regional policy in the field of Family

Planning and Women's Empowerment.


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In 2011, the National Family Planning and Women's Empowerment Rokan Hulu in collaboration with the Central Statistics Agency (BPS) of Rokan Hulu District prepared the selection of data profiles to be published. The data is used to formulate gender-responsive programs in Rokan Hulu. Some policies and development programs based on gender mainstreaming explicitly stated in the

Medium Term Development Plan (RPJMD) of Rokan Hulu 2011-2016 are listed in Table 7.

Table 7 Gender-based programs in the medium term development plan for Rokan Hulu District.

Policy Direction Program Reduce maternal and infant mortality

Improving maternal and child health; and Deliveries for mothers of poor families.

Expanding work and career opportunities for women.

Improved quality of life and protection of women; and Increased Role of Women Towards Healthy Family Welfare (P2WKSS) and the Clean and Healthy Lifestyle (PHBs).

Improving the welfare and protection of children

Harmony policies to improve the quality of children and women; and Disseminating information on the regulations for improving the quality of children and women as well as facilitating the establishment of child-friendly cities (KLA).

Improving the physical and mental quality of children and women

The development of information materials on parenting and child development ; and The collection of information materials on parenting and child development coaching.

strengthening gender mainstreaming ( PUG ) and child institutions

Institutional strengthening of gender mainstreaming and children; and Advocacy and facilitation of gender mainstreaming for women.

Source: Medium term development plan (RPJMD) Rokan Hulu 2011-2016

Section 4 Rapid Assessment Results

4-1


No. Factors

Determining District Readiness

Assessment Scoring and Discussion Documents Reviewed & Sources of

Information

1. Political Analysis 1.1 Government

Transparency Policies

The Medium Term Development Plan (RPJMD) Rokan Hulu 2011-2016 stated the need for improved performance of the government apparatus, including: public service, good governance, clean government. This includes implementing transparency in all governance sectors.

3 2 1 Interview with staff of Bappeda Rokan Hulu ,

(19-21 August 2015 ) ;

Discussions with the relevant SKPD.

Mid - term Development Plan of Rokan Hulu

(2011-2016);

The local government of Rokan Hulu has committed to implementing transparency or public disclosure despite the lack of specific district regulation (Perda) related to the Public Transparency and Public Participation.

Rokan Hulu has had a Documentation and Information Management Officer (PPID), based on a decree (SK) Regent Rokan Hulu No. 489 /2015 which refers to Law No. 14/2008 on the Openness of Public Information. Rokan Hulu already has a web site: http://rokanhulukab.go.id. Bappeda (http://bappeda.rokanhulukab.go.id); Department of Mines and Energy (http://distamben.rokanhulukab.go.id), including the Electronic Procurement Service (LPSE), namely http://lpse.rokanhulukab.go.id ; etc. . The website can access various information, including: general information about the government, the


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development plan, profile and potential of the region, local investment and local facilities.

1.2 Commitment to low emission economic growth

Rokan Hulu is ready to respond to the target for the development of low carbon emissions, as indicated in the draft of District Spatial Plan (RTRWK). This document stated the plan for developing the renewable energy sector including: Solar Power Plants (PLTS); and Micro Hydro Power (MHP); and Power Generation Biogas (PLTBg).

There are district regulations (Perda) that support the implementation of low carbon development such as; Perda No. 2/2004 on permit for Liquid Waste Disposal and Utilization of Wastewater from Palm Oil industry (supporting biogas facility) in Rokan Hulu; Rokan Hulu Regent Decree No. 347 of 2010 on City Forest Area Designation;

3 2 1 1.Interview with staff of Bappeda Rokan Hulu , ( 18-21 August 2015 ) ; 2. Discussions with the relevant SKPD ; 3. Mid - term Development Plan of Rokan Hulu ( 2011-2016 ) ; 4. Strategic Plan Department of Public Works , Mines and Energy 5. Draft Spatial Plan Rokan Hulu 2011-2016

Rokan Hulu government is committed to the development of a low-emission economy. Some of the conditions in the field include: the use of solar power in remote villages; Micro hydro and Biogas. Funding comes from district budget, as well as independent financing by local communities.

1.3 Potential land use conflict

Existing land use in the Rokan Hulu is in accordance with the Rokan Hulu draft spatial plan 2012-2032. Land use conflicts and boundaries are more prevalent between people and companies. Conflicts also occur between small firms with companies, as well as between

3 2 1 1. Interview with staff of Bappeda Rokan Hulu ,

( 18-21 August 2015 ) ;

2. Discussions with the relevant SKPD.

3. Interview with Head Office of Integrated

Licensing Services and Investment ;

4. Interview with staff of the Department of

Forestry and Agriculture ;

Results of interviews with the Agency and the local government unit (SKPD) such as the Mining and Energy Agency; Forestry and Plantation; Integrated Services Office of Licensing and Investment that potential conflicts of land use and boundaries in the region Rokan Hulu still occur.


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companies with local government. The issuance of Decree ( SK ) Minister of Forestry No. 878/2014 on the changes to non-forest status gives rise to problems related to the use and demarcation of forest and non-forest areas. There are discrepancies between the draft spatial plan and this decree. Rokan Hulu government has issued Regulation No. 4/2011 regarding the regional organization governing the organization and procedures for conflict resolution, including land conflicts.

Data on Forestry and conflicts of use and boundaries include: commercial plantation forestry

company, HTI (PT. Sumatera Sylva

Lestari) with the public, land use

conflicts (± 2,600 ha) since 2004, the

conflict is being resolved by the sub-

district head (Calmat) and the district

head (Bugatti);

HTI Company (PT. Bina Power NCO)

by the public, land use conflicts (±

15,000 Ha), the settlement is

processed by the Department of

Forestry and Agriculture;

palm oil plantation company with the

surrounding community (PT.

Torganda; PT. Hutahean; PT.

Sumberjaya Industry, etc.); and

Companies with inter-regional

companies Rokan Hulu (PT. Bina Daya

Bintala) with Siak (PT. Bina Daya

Bintala) 150 ha. Completed by the

Ministry of Forestry (DG BUK) through

a revision of SK IUPHHK PT. Bina Daya

Bintara.

Based on other sources of conflict and the use of land boundary demarcation, also still occur among others: There is a boundary conflict between Rokan Hulu with Kampar districts

5. Document RTRWK Rokan Hulu , 2012-2032 ;

6. http://www.goriau.com/opini/rtrw-riau-

terbukti-tidak-pro-rakyat.html ; and

7. http://rokanhulu.com/terima-masyarakat-

desa-sengketa-rohul-kampar-pemkab-rohul-

tegaskan-tetap-perjuangkan-5-desa/

8. http://tapem.rokanhulukab.go.id


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involving administrative boundaries of some villages such as Tanah Datar, Rimbo Jaya, Intan Jaya Makmur Rimbo and Muara Intan, Pagarantapah Darussalam and Kunto Darussalam villages in Rokan Hulu. Local Government Rokan Hulu has conflict resolution mechanisms and the use of land boundary demarcation. The issue of administrative boundaries of the village, sub-district and district is managed by the Governance Section (Regional Secretariat). This shows that Rokan Hulu District has a conflict resolution mechanism.

2. Institutional Analysis 2.1 Bappeda and Sector

Agencies Perda No. 4/2011 on regional organization contained an explanation on the organizational structure, position and main task. Each office/agency/department (SKPD) has a strategic plan that is consistent with the Agency. The strategic plan describes strategic issues based on the duties and functions of the organization, a description of the vision - mission - objectives including performance indicators. SKPD strategic plan including Bappeda becoming part of the Perda No.7/2011 in the Medium Term Development Plan (RPJMD) Rokan Hulu Year 2011-2016.


( 18-21 August 2015 ) ;


3. Rokan Hulu District Regulation No. 4

Tahun2011 of the regional organization;

4. Regulation of the Head of Planning Agency

Rokan Hulu No. 1 Year 2012 on BAPPEDA

Year Strategic Plan 2011-2016 ; and

5. Mid - term Development Plan of Rokan Hulu

(2011-2016).

The results of discussions with the Agency obtained information that –in addition to the head and the secretary- this institution consists of five divisions (economic; social and cultural; physical and infrastructure development cooperation and research), technical executing unit and functional groups. Bappeda through these five areas have the task of carrying out the preparation and implementation of regional policies in the field of regional development planning ; and perform the functions of coordinating development planning

2.2 NRM Licensing Government of Rokan Hulu already 3 2 1 Interview with Secretary BPTP2M Office ;


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No. Factors



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process/procedures

has a mechanism/licensing process under the Integrated Service Agency Licensing and Investment (BPTP2M). BPTP2M office of Rokan Hulu already has a website: http://bptp2m.rokanhulukab.go.id. The webisite contains a service menu consisting of: Terms; services; procedures; mechanism; costs and time as well as licensing Complaints Mechanism.

Government of Rokan Hulu has a licensing procedure and the authority to issue a business license and/or activities that exploit natural resources and utilize the environment as well as the expected impact on the environment. In 2015 Rokan Hulu was awarded the gold predicate (highest rank) for attractiveness of potential districts to invest. Licensing procedures require that the BPTP2M get recommendation from relevant technical agencies in reviewing a license application.

1. Discussion with related SKPD. 2. http://bptp2m.rokanhulukab.go.id ;

2.3 Non-government actors affecting district development

Based on data from the Office for National and Political Unity (Kesbangpol) in Rokan Hulu, the number of Governmental Organizations (NGOs) is about 10 institutions, while there are approximately 20 community and youth organizations. Several institutions and organizations there are quite active in monitoring the implementation of development, such as Monitor Counter Corruption and Clean Governance.

3 2 1 1. Interview with staff of Bappeda Rokan Hulu , ( 18-21 August 2015 ) ; 2. Discussions with the relevant SKPD. 3. Interview with the Secretary of the Office of BPTP2M ; 4. http://www.rohultoday.com/news-796/bupati-rohul-minta-ormas-jadi-jembatan-ke-masyarakat.html

Local Government of Rokan Hulu has established cooperation with NGOs/CBOs and youth organizations. The local government through the Office of Kesbangpol conducts training activities for NGOs/CBOs and youth organizations. The aim is that NGOs/organizations can help facilitate information dissemination and communication between the district and the community. Some existing NGOs indirectly affect the direction of development in the area Rokan Hulu. NGOs in the district are a benefit to society.

2.4 Low level government offices (sub districts and villages)

Local Government of Rokan Hulu implements hierarchical model of government beginning with the district, sub-district and village levels. In the last five years the community


( 18-21 August 2015 ) ;


3. Interview with the Secretary of the Office of

BPTP2M ;

Some rural development programs have been implemented by local governments and the central government in Rokan Hulu (PNPM, Pamsimas; MDGs) or other programs that have involved the


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villages in the district of Rokan Hulu have run government programs, including: Rural Infrastructure Services

(RIS) or rural infrastructure

services for the National

Program for Community

Empowerment (PNPM);

Drinking Water Treatment and

Sanitation Society (Pamsimas)

financed through the district

budget from 2008 to 2015. This

program has reached 119

villages out of 147 villages in 16

districts; and

Millennium Development Goals

(MDG's) is an effort to improve

the well-being of society

through the reduction of

poverty and hunger, education,

women's empowerment, health

and environmental

sustainability.

Members of the public are involved in every stage of participatory activities, from planning, decision-making in the use and management of funds according to the needs of the most priority in the village, to the implementation and preservation.

community. Such programs involve public participation as actors in the planning, implementation and monitoring and evaluation. In the implementation of the PNPM program, Pamsimas and MDGs roles of Village Government and the District Government are very important. Since 2009 the local government facilitated the formation of village-owned enterprises (BUMDes). It is estimated that there are about 122 BUMDes in 16 districts, Rokan Hulu. The legal basis is the establishment of BUMDes Village Regulation (Perdes) and Regulation No. 8/2007 on village-owned enterprises, with various areas of business as well as working capital estimated at between Rp. 350 million and Rp. 1.8 billion. The learning process of any development program and BUMDes is expected to help the readiness of governments in the district and village level as well as the community at this GP project.

4. Review the data on the village-owned

enterprises Community Empowerment

Board and Village Government, Kab. Rokan

Hulu ;

5. http://distarcip.rokanhulukab.go.id/24-

desa-rokan-hulu-dapat-ris-pnpm-mandiri.


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Information

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

Government of Rokan Hulu is committed to maintaining appropriate resource conservation mission in 2011-2016 RPJMD documents, consisting of: Control of pollution and

environmental destruction →

monitoring environmental

quality, environmental impact

assessment, EIA coordination

and increased public

participation in environmental

control.

Protection and conservation of

natural resources → damage

control and forest land.

Increased pollution control →

motor vehicle emissions testing,

emissions testing/air pollution

caused by industrial activity and

extension and control of

pollution and contamination.

Improving the quality of and

access to information resources

and environment → preparation

of the environmental status of

the region.

However, no NGOs and/or donor supports are recorded for the above activities.

3 2 1 1. Interview with staff of Bappeda Rokan Hulu , ( 18-21 August 2015 ) ; 2. Discussions with the relevant SKPD .; and 3. Interview with Secretary BPTP2M Office.

Results of discussions with the Head of Development Cooperation and the Office of Bappeda BPTP2M that in the area of Rokan Hulu there has been no involvement of NGOs/NGO (donor) in environmental management and facilitation activities contributing directly or indirectly to the development of low emissions.


4-8

No. Factors



Information

2.6 Public participation Law No. 32/2004 on Regional Government (Autonomous Regions) have brought a paradigm shift from centralized development to decentralization to the district/city level. Implementation of Regional Autonomy, which is based on the principle of participation, democracy, justice, equality, and the potential and diversity of the regions. Community involvement began in Rural Development Plan Meeting (Musrenbangdes) at the village and district level. The local government also invites Governmental Organization (NGO)/local community organizations - particularly in delivering development results.

3 2 1 1. Interview with staff of Bappeda Rokan Hulu , ( 18-21 August 2015 ) ; and 2. Discussions with the relevant SKPD.

Local Government has a commitment to transparent government and public disclosure. The transparency mechanism involves communities in all stages starting from the planning, decision making, implementation, monitoring to the maintenance of the results of activities. Planning begins with brainstorming in groups at the village level, then continues with Rural Development Planning Meeting (Musrenbangdes ) to set priorities proposed in village and inter-village meetings held at the district level in order to determine the priorities of the proposals and funding. In the discussion at the district level, the district government involves representatives of the community (education, religious and community leaders).

3. Participatory Land Use Planning Analysis 3.1 Analysis on existing

conditions related to 4 Tasks in Participatory Mapping and Planning (Pap) and specific recommendations (if any)

Task # 1: participatory mapping

of land is not optimal. Regional

Secretariat Rokan Hulu through

Governance (which has the

power to arrange boundaries)

has been carrying out the

identification and resolution of

boundary. Approximately 300

km out of 3,000 km are its

responsibility. Arrangement of

the boundary plan will involve

3 2 1 1. Interview with staff of Bappeda Rokan Hulu , ( 18-21 August 2015 ) ; and 2. Discussions with the relevant SKPD ; 3. Overview PLTBg Overseas Way ; and 4. Interview with a companion BUMDes (PT staff. Pasadena).

In the task # 1, participatory mapping has not been carried out. District government has completed boundary mapping in five (5) villages (including part of the 300 Km). However, the interest to avoid boundary disputes between villages and districts, the activities will involve the community boundaries; Task # 2, showed that the capacity of human resources and/or technology is adequate in Bappeda and also in the


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No. Factors



Information

various parties (districts,

villages, traditional leaders,

community leaders, religious

leaders and others);

Task # 2: geo-spatial data

acquisition and preparation of

GIS database of land use/land

cover takes place in BAPPEDA

Rokan Hulu. Bappeda still use

the plan as a reference spatial

pattern used in permit

coordination with other

agencies such as forestry and

plantations;

Task # 3: compilation and geo-

reference to land and use of

natural resources can be found

at Bappeda.

Task # 4: Rokan Hulu local

government has the capacity to

undertake various mapping and

planning processes.

Department of Forestry; Task # 3, the conditions, procedures and mechanisms for licensing as well as the existing infrastructure is adequate to support the distribution of permits for the implementation of the grant (existing infrastructure is inadequate, e.g., office, internet, processes); and Task # 4, Although the current spatial plan is still in the draft format, there has been indication that the capacity within the district govenrnment of Rokan Hulu is sufficient for using geospatial tools for planning purposes. This suggests that Rokan Hulu only requires PLUP Task #1.

4. Regulatory Analysis 4.1 Regulatory

framework enabling GP Project Investment

The draft spatial plan 2012-2032 includes the renewable energy sector: Solar Power Plants (PLTS); and Micro Hydro Power (MHP); and Power Generation Biogas (PLTBg). There are few local regulations related to the development of low carbon emissions. Some regional regulations that can

3 2 1 1. Interview with staff of Bappeda Rokan Hulu , (18-21 August 2015) ;

2. Discussions with the relevant SKPD ; and 3. Mid - term Development Plan of Rokan

Hulu (2011-2016).

Rokan Hulu has had several regional regulations governing environmental management. However, they are still limited and they do not have regulations related to renewable energy. However, with a GP program associated with a focus on new renewable energy development, there are some regional regulations that


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support the GP projects may include: Regulation No. 2/2004 on Permits for Liquid Waste Disposal and Utilization of Wastewater from Oil industry on Land in Rokan Hulu; Regulation No. 8/2007 on village-owned enterprises; Regulation No. 11/2007 on Village cooperation

will support the implementation of the program. The spatial plan is in a draft stage and has not been formalized through any Perda.

4.2 Safeguards on human health, livelihood and the environment

Local Government of Rokan Hulu has regulations related to the protection of human health and the environment, including: Regulation No. 2/2004 on Permits for Liquid Waste Disposal and Utilization of Wastewater from Oil industry on Land in Rokan Hulu; Rokan Hulu Regent Decree No. 347 of 2010 on City Forest Area Designation; Regulation No. 1/2009 concerning the Prohibition and Control of Disease Society; Regulation No. 2/2015 on Corporate Social Responsibility; and Rokan Hulu Regent Regulation No. 45/2012 about Regional Action Plan to Accelerate Achievement of the Millennium Development Goals target Rokan Hulu Year 2012- 2015.

3 2 1 1. Interview with staff of Bappeda Rokan Hulu, (18-21 August 2015);

2. Discussions with the relevant SKPD ; and 3. Mid - term Development Plan of Rokan

Hulu (2011-2016).

Rokan Hulu has an Environment Agency (BLHD). The agency has the capacity to evaluate and provide recommendations on environmental permitting for construction in the district. For matters relating to environmental protection (standards and guidelines), the district refers to the provincial and national regulations.

4.3 PES Initiatives and efforts towards the management of natural resources and integrated with efforts to solve economic challenges of society, in


2. Discussions with the relevant SKPD; and 3. Interview with Secretary BPTP2M Office.

Although hydroelectric power (MHP) has been running in some locations, there are no payments for the environmental


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fact, have been done by the government or the people themselves. An example is the development of new renewable energy in several locations : MHP funded by the government and NGOs in some regions Rokan Hulu; Solar Power Plants (SPP ) in remote villages; PLTBg runs in Rantau Way, District of North Tambusai.

services program associated with this activity. This is due to the Government of Rokan Hulu’s failure to provide rules that provide clarity and legal force to guard the management of environmental services.

4.4 Local government incentives for green investment

Provisions concerning the incentives stipulated in Government Regulation (PP) No. 18/2015 regarding Income Tax Facilities for Investment in Certain Business Fields and or in Certain Regions. In general, Regulation No. 18/2015 provides some tax facilities, including, reduction of net income of 30% of the total investment in the form of fixed assets, including land used for business activities. Businesses in the field of environmentally friendly products or green investments are entitled for such incentives and include the operation of geothermal power, industrial refining and natural gas processing, industrial organic basic chemicals derived from agricultural products, industrial tube lights gas, power generation, and procurement


2. Discussions with the relevant SKPD; and 3. Interview with Secretary BPTP2M Office.

Government of Rokan Hulu has the one-roof licensing office (BPTP2M) to help service processes, procedures and mechanisms of investment licensing. In exercising these duties, BPTP2M still coordinates with the relevant technical departments. But the Local Government of Rokan Hulu has not made any policy package specific to green investment or low emission development. This is because most of the development is categorized in the forestry sector, (plantations, infrastructure, etc.) . Incentives for green investment or development are regulated by the Department of Trade and Industry.


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of natural gas. Others include, purification and water storage reservoirs, clean environmentally friendly urban transport, tourism region, as well as the management and disposal of non-hazardous waste.

4.5 Local government and community contribution to the environment

The Medium term development plan 2011-2016 (RPJMD) aims for development through four main strategies consisting of: Encouraging growth (pro -

growth);

Expanding employment

opportunities (pro -job);

Tackling poverty; and

friendly environmental

conservation (pro -

environment)


2. Discussions with the relevant SKPD; 3. Mid - term Development Plan of Rokan

Hulu ( 2011-2016 ); 4. http://dishutbun.rokanhulukab.go.id/in

dex.php/component/; and 5. Search / forest % 2Bdan % 2Blahan?

ordering = & search phrase = all.

Programs that have been implemented by

the district government involving the

public and private sectors include:

Renewable energy development

programs such as PLTBg and MHP.

Some local governments in the

implementation program involve the

community, including:

Thursday → planting trees for

greening and preserving the

environment

Greening (mahogany, matoa and

ketapan) → elementary school, junior

high, high school, university Sand

Pengaraian, village office/village and

agency offices.

Identification of landowners in

conservation areas for golden red

arowana fish breeding in Thousand-

village Marsh in Mahato village, of

North Tambusai sub-district.

Fire-care community (MPA) to prevent

land and forest fires ;


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Development of green space in the

Regent's Office, around the offices

SKPD.

5. Social and Gender

5.1 Status of gender mainstreaming issues in the district

Government of Rokan Hulu gives considerable attention to gender. The existence of SKPD that specifically addresses the issue of gender is a family Agency for Planning and Women's Empowerment (BK & PP). This SKPD has a mission to Enhance the role of women in various fields of development by: Eliminating the role

stereotyping, double burden,

subordination, marginalization

and violence against women as

well as men;

Eliminating discrimination

between women and men;

Having access to, the chance to

participate, and control over

development; and

Obtaining equal and equitable

benefits from development.


2. Discussions with the relevant SKPD; 3. Strategic Plan BK & PP; and 4. Mid - term Development Plan of Rokan

Hulu (2011-2016).

Government of Rokan Hulu is committed to mainstreaming gender in development process. This was indicated by the direction of policies and programs in 2011-2016 RPJMD Rokan Hulu, which include: Expanding the policy to ensure work

and career opportunities for women;

Increasing Role of Women Towards

Healthy Family Welfare (P2WKSS) and

the Clean and Healthy Lifestyle

(PHBs);

Policies: Strengthening institutional

PUG and children;

Institutional strengthening of PUG and

children; and

Advocacy and facilitation of PUG for

women.

Nonetheless, the absence of female officers at the head office level (even the Head of Women Empowerment is a male) indicates that gender mainstreaming has not worked in this district. Another problem is the low level of appreciation for the value of gender equality, and the limited access to information. Implementation of gender mainstreaming is not optimal and there is


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a lack of cross-sectoral coordination in the implementation of women's empowerment.

5.2 Vulnerable community groups

Government of Rokan Hulu participates and is committed to the achievement of the MDGs (Millennium Development Goals ) 2012-2015; National Community Empowerment Program (PNPM) 2011-2015; Increased Role of Women Towards Healthy Family Welfare (P2WKSS); Clean and Healthy Lifestyle (PHBs); Family Hope Program (PKH); Drinking water programs and community-based sanitation ( PAMSIMAS ); Rice subsidy, etc.


2. Discussions with the relevant SKPD; 3. http://www.segmennews.com/2015/03

/petugas-pkh-; 4. trouble -data - poor families - in - ryokan

- iv - kobo - Rohul; 5. https://pnpmmpdrohul.wordpress.com; 6. / author / pnpmrohul /; and 7. http://sanitasimasyarakat.blogspot.com

/

In the implementation of the eight MDGs, district government coordinates with the province, including the preparation of the achievement of the MDGs in 2012-2015. The availability of the data in Rokan Hulu from several community-based programs/poor (vulnerable) and access difficulties in meeting basic needs (economy, education, health, etc.) is adequate.

5.3 Customary laws and its effect on district development

Within the region, there is a Rokan Hulu Malay Customary Institution (LAM) consisting of five Indigenous Institutes (LKA): Luhak Tambusai, Rambah, Rokan, Kepenuhan and LKA Luhak Kunto Darussalam. LAM status in Rokan Hulu is validated by Regional Regulation No. 2/2013. A draft of local regulations related to Indigenous Villages is being prepared. There are 27 villages proposed as traditional villages in Rokan Hulu. If a law on the establishment of indigenous villages is approved, the village obtains communal land.


2. Discussions with the relevant SKPD; 3. http://kiramnews.com/berita-1139-

perda-desa-adat-; and 4. passed 27 - village - in - ryokan -

upstream - would - have - ground - ulayat.html.

Indigenous governance structures anywhere in Indonesia consist of traditional elements and elements of the clergy - including LAM Rokan Hulu. Customary law in Rokan Hulu is known as the Thousand Suluk- which means the path of the spiritual to reach God. LAM functions as a government partner in the effort to increase the welfare of the society. Main tasks include: Organize and seek harmonious and

beneficial cooperation with all other

segments of society and government;

To advise , whether requested or not


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Customary rights will be returned to the village and the village will have its own rules, such as authority and finance (the village will be assisted through the district budget and the provincial budget).

requested to the Regional Government

in increasing the participation of

indigenous peoples to move the

process and implementation of

regional development of Rokan Hulu

as well as the preservation of

traditional values .

In the village customary rules, elected village heads automatically become Chairman of the Institute of Indigenous density (LKA). This includes legal problems, which can be solved by custom; there is no need to rely on law enforcement authorities.

6. Status of Requirements for Compact Conditions 6.1 Approved

RTRW/Spatial Plan Rokan Hulu has a draft Spatial Plan (RTRWK) 2012-2032, in the process of preparation and revision.

3 2 1 1. Interview with staff of Bappeda Rokan Hulu, (18-21 August 2015); and


Approval of RTRW Rokan Hulu is waiting upon RTRW Riau Province. Riau Province RTRW status at this point in the discussion is pending approval.

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

Rokan Hulu regency administration is quite open to the inquiries of data and information necessary to support the regional development program which has implications for local economic development. In the Medium Term Development Plan (RPJMD) Rokan Hulu 2011-2016 there were six goals, where the first stated the aim for improved performance of the government apparatus, including: public service, good governance, and clean



Government of Rokan Hulu has been providing a website to provide data and presenting information electronically. Almost all the Local Government Units (SKPD) and the Department/Agency/Office have also provided space for relevant groups/individuals to access data and information.


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government. 6.3 Demonstration of

the potential value added to the district’s ability to further support intervention from the GP

Landscape and land use in Rokan Hulu are mostly forests and palm oil plantations (and mills). In the region there are 200 lakes, 300 rivers including five major rivers (Left Rokan River, Right Rokan River, Batang Sosah, Batang Kumu and Mahato River), as well as two dams and reservoirs (Cipogas and Menaming). Developing the potential of forests, plantations, rivers, lakes and reservoirs has a strategic meaning in the context of the economic empowerment of the local community, tourism, preservation of biodiversity and the environment.



Rokan Hulu region consists of watersheds, forest cover and land use (plantations). There is potential for the development of renewable energy, agriculture and natural tourism development. Some of the potential that can be considered related to the condition of Rokan Hulu are: watershed area (DAS) in the five major

rivers;

oil palm plantation area of ± 400,000

ha and a palm oil mill with oil

processing capacity of 25,000 - 40 000

tons/hour and as much as ± 40 units;

BUMDes have been formed in every

village; and

Utilization and development of new

renewable energy (MHP/SPP/PLTBg )

is already running

7. Perception and Preference 7.1 Perception and

preference towards renewable energy scenario.

In the process of communication, coordination to develop an understanding of the environmental program at the district Government of Rokan Hulu (Bappeda and related SKPD) - PMC team did a presentation primarily on community-based and commercial renewable energy development programs.


2. Discussions with the relevant SKPD; and 3. Overview PLTBg Rantau Sakti.

The stakeholders (staff) representing Bappeda and the district government of Rokan Hulu generally accepted and chose to express their interest in the GP program plan and to focus development on new renewable energy (specifically the utilization of palm oil mill effluent to be converted into electrical energy). They support GP investment so that this project


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Renewable energy scenario suitable for Rokan Hulu is the biogas development, for the district contains areas with oil palm plantation with its processing industry (palm oil mills, MCC approximately 34 units) that can supply the raw materials for the biogas plants. Moreover, the biogas plant is expected to also address the waste issues currently faced by these palm oil plantations/mills.

Local Government funds through state and local budgets have developed a pilot project on the use of wastewater PLTBg Palm Oil Mill Effluent (POME) from the MCC PT. Rama Arya Initiative, Rantau Way in North Tambusai Sub-district.

can help the development of new renewable energy (electricity) and will also have implications for economic development in the Rokan Hulu. There is some preference to develop PLTBg for off grid electricity supply in remote areas, but it can also be undertaken in cooperation with PLN.

Summary of Scoring 1. POLITICAL ANALYSIS 7 2. INSTITUTIONAL ANALYSIS 15 3. PLUP 3 4. REGULATORY ANALYSIS 10 5. SOCIAL AND GENDER 8 6. STATUS OF REQUIREMENT FOR COMPACT CONDITIONS 7 7. PERCEPTION AND PREFERENCE 3 TOTAL (maximum possible = 66) 51

Section 5 Conclusions

5-1

Section 5 Conclusions

Based on criteria determined by the DRA described in Section 4, Rokan Hulu received a score of 51 (77 %) of a possible maximum 66 points. This is a relatively good score and indicates a high degree of commitment and readiness to receive GPP investment. Aspects that received the minimum score of 1, include: contributions from NGO/NGOs in the development of a low-emission economy, Payment for Environmental Services (PES) and local incentives for green investments, and spatial planning that is still in the draft stage. This indicates that the Government of Rokan Hulu has not been cooperating with donor agencies/NGOs, and environmental services are not developed because there is no program and they do not have a policy of incentives for green investment/sustainability. However, the government of Rokan Hulu has stated an interest in the GPP program, mainly for the development of new renewable energy made from a liquid waste called Palm Oil Mill Effluent (POME). In relation to Participatory Land Use Planning, only Task#1 (Participatory Boundary Mapping) is required in Rokan Hulu District.

A-1

Appendix A

Map of Rokan Hulu District

Sumber : Draft Spatial Plan Rokan Hulu 2012-2032

Rokan Hulu Administration Map

B-1

Appendix B

Photographs of Rokan Hulu Landscape

Source : https://www.google.com/search?q=landscape+Rokan+Hulu&source= kebun+ sawit+ di+wilayah+ Rokan Hulu

Landscape view of Rokan Hulu District (palm oil plantation)

B-2

Source : Pasadena Engening Indonesia, PLT Biogas, 1 MW Rantau Sakti

Palm oil mill (PKS) PT. ARYA RAMA PRAKARSA (PT. ARP), di Desa Rantau Sakti – Sub-district Tambusai Utara, Kab. Rokan Hulu.

Methane gas trapping facility

B-3

Source: PLT Biogas, Desa Rantau Sakti Sub-district Tambusai Utara. Mining and Energy Agency Rokan Hulu, 2015.

Biogas generator facility in Rantau Sakti Village, North Tambusai Sub-district, Rokan Hulu District

C-1

Appendix C Summary of Field Observation Activities

Date/day Location Activity Information Sources

19 /08/ 2015

Wednesday

Bappeda

Rokan

Hulu

(Rohul)

Coordination with

Bappeda Secretary

conveying the intent and

purpose;

limited discussion with

the Secretary of the Head

of Bappeda and some

related data collection plan

(invite) several related

SKPD ; and

The main activities of the

PMC is collecting data and

information related to GP

Project;

Head of Planning Agency ( Nifzar , SP )

field visits;

Secretary of Bappeda direct meetings and

discussions with the participation of

(limited) staff of Bappeda Rohul :

– Head of Economic Affairs (Pa

Fakhruddin);

– Cooperation and Development Head

of Bappeda (Pa Mawardi Azhar);

– Head of Physical and Infrastructure

(Pa Afrizal);

– Head of Sub Division of Natural

Resources, Transportation and

Telecommunications, (Pa Rafit);

20 /08/ 2015

Thursday

Bappeda

Rokan

Hulu

(Rohul)

Implement presentation: presentation of GP program to build understanding and continued discussions and data collection according to the directions within the DRA guide

The participants included:

– Secretary of Bappeda (Pa Indra JP);

– Cooperation and Development Head

of Bappeda (Pa Mawardi Azhar);

– Head of Sub Division of Planning,

Evaluation and Reporting Forest

Service (Pa Harisman);

– Staff Regional Environmental

Agency (BLHD, Lidya Anna);

– Head of Sub Division Office of

Family Planning and Women's

Empowerment (FP & PP, Mrs.

Bahroina);

– Secretary of Integrated Services

Licensing and Investment (Ministry of

Agriculture & PM, Pa Sam P Putra);

– Head of Physical and Infrastructure

(Pa Afrizal);

– Head of the Social and Culture

Bappeda (Pa Jon Kenedy);

– Head of the Department of Energy

Mines and Energy (Pa ARKOM);

– Secretary Office of Food Crops and

Horticulture (Pa Erwan);

– Head of Public Relations Sub

Division, Secretariat of the Local

Government (Pa Zemy);

– o Data access RPJMD; RPJPD; RTRWK;

BUMDesa; MDGs; Profile data

Governmental Organization (NGO);

Strategic Plan SKPD (Bappeda; FP &

PP; BLHD; BPTP & PM; Food Security

and Extension; Food Crops and

Horticulture; Forestry and Estates;

Spatial and Settlements; Mines and

Energy; and the Regional Secretariat).

C-2

Date/day Location Activity Information Sources

21 /08/ 2015 Friday

District Secretariat

Coordinate with Legal sub- section Rokan Hulu (Pa Dani);

Access Catalogue Regional Regulation and decree as required in the Rapid DRA guidelines

Mining and Energy Agency

Coordination with Head of Energy (Pa ARKOM);

Access data and information related to the development plan and the existing condition of renewable energy: Solar Power Plant (SPP) and Power Generation Biogas (PLTBg).

One-roof licensing office

Coordination with the Secretary of State for Integrated Services Licensing and Investment (Pa Anang);

Access to information related to the procedure for the issuance of a permit process -procedure activities ;

Forestry Agency

Coordinate with sub Head of Planning , Evaluation and Reporting Forest Service ( Pa Harisman ) ;

Access data and information related to land use conflicts according to existing maps and in the field.

Field visit Rantau Sakti Village Sub-district North Tambusai

Looking at the development of renewable energy -based liquid wastes (methane) from palm oil mill (MCC) PT. ARYA RAMA INITIATIVE (PT. ARP )

o Government of Rokan Hulu build PLTBg (at the expense of the state budget, or the state budget and the local budget); o The composition of the state budget (± Rp . 28 billion) for the construction and equipment (machinery) and regional (± Rp . 4 billion) to the transmission network ; o The development of energy -based palm oil mill effluent (PKS) capable of producing electrical energy ± 1 MW; o PLTBg was operating ± 1 year with an installed capacity of 950 kW. When this has been serving ± 2,000 households in three villages surrounding, unused energy ± 450 kW, 400 kW still available.

22 /08/ 2015 Saturday

Travel to Rokan Hilir

Journey of Pasir Pengaraian - Bagansiapi - api