millennium challenge account-indonesia ......people/km2 is located in sangir sub district; lowest...

MILLENNIUM CHALLENGE ACCOUNT-INDONESIA

GREEN PROSPERITY PROJECT

PROGRAM MANAGEMENT CONSULTANT

SOUTH SOLOK DISTRICT

RAPID DISTRICT READINESS ASSESSMENT (RDRA)

FOR PARTICIPATION IN MCA-INDONESIA’S

GREEN PROSPERITY PROJECT

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

Under Contract Number GP-B-001

Table of Contents

i

Table of Contents

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

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

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

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

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

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

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

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

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

3.3.1 Performance for the Period of 2005-2010 .........................................................................3-1 3.3.2 Development Targets for 2010-2015 ...................................................................................3-2 3.3.3 Low-Emission Economic Development ...............................................................................3-2 3.3.4 Renewable Natural Resources Management .....................................................................3-2

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

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

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

List of Appendices

Appendix A1 Maps of South Solok District

Appendix A2 Photographs of South Solok Landscape

Appendix A3 Summary of Field Observation Activities

Acknowledgements

ii

Acknowledgements

This report was prepared with the support of MCA-Indonesia and the South Solok District government, by the Program Management Consultant (PMC) team of MCA-Indonesia’s Green Prosperity Project (GPP). Particular support was provided by MCA-Indonesia by Pak Sigit, Pak Arief Setyadi, and Ibu Rubeta, who provided initial information and the field team’s letter of support. In South Solok district, particular support was provided from the Head of Bappeda, Pak Dedi from Bappeda, Pak Yos from Agriculture Agency, and Pak Tri, head of Forestry and Plantations.

Executive Summary

iii

Executive Summary

This report provides a rapid district readiness assessment (RDRA) of the capacity, commitment, and investment opportunities of South Solok (Solok Selatan) District, West Sumatra, to support environmentally sustainable and low-carbon economic growth through the MCA-Indonesia Green Prosperity Program (GPP). This assessment included a field visit from October 26 to 28, 2014. The objectives of this rapid assessment were to assess the level of readiness of South Solok District for GPP activities, and specifically examined: political conditions; institutional capacity; regulatory frameworks; social and gender analysis; and required conditions under the Millennium Challenge Compact. The result of this assessment will be used to prioritize the 11 districts for signing of MoUs with MCA-Indonesia for project implementation. South Solok occupies high, mountainous terrain (ranging from 350 to 430 m asl), and has a wet, tropical climate with an average humidity of 80%. Of the total district area of 359,013 ha, 42% (150,532 ha) is within Protection Forest and the remaining 58% (208,481 ha) is cultivation/production area. The population of South Solok in 2013 was 153,943 people (comprised of 77,525 men and 76,418 women, for a sex ratio of 101.20:100). Surveyed population in 2013 was 3.7% higher than that measured in 2012. Population density averaged 46 people per km2. Recent economic performance of South Solok has shown steady improvements, indicated by an increase in gross domestic regional product (GDRP) from IDR 710.1 billion in 2005 to IDR 1.41 trillion in 2010. Of this total 2010 GDRP, 38% was generated by the agriculture sector, followed by the trade sector (18%). The inflation rate in South Solok during the period of 2005-2010 was stable at 8.53 to 8.62%. Based on the South Solok Mid-term Regional Development Plan for 2010-2015, the incidence of poverty decreased from 2007 to 2010 from 17.43% (21,300 people) to 11.11% (16,027 people). South Solok has high potential for low-carbon economic growth through natural resource management (NRM) and renewable energy (RE) activities. Forest management through HTN (hutan nagari) has provided a good foundation for future intervention in NRM. Hydropower also has great potential for development in the district, with potential sites previously identified by the district, with several micro-hydro facilities in operation since the 1980s.

South Solok scored 49 out of a maximum potential “readiness” score of 60, which indicates a high

level of readiness to receive GPP investment. The lowest of all component readiness scores for South

Solok was recorded for real incentives that the local government could provide for green

development. This area could represent an opportunity for additional intervention in South Solok by

MCA-Indonesia.

Section 1 Introduction

1-1

Section 1 Introduction

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

to the previous 4 districts as the pilot project area) within six provinces as target area for project

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

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

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

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

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

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

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

Consultant (PMC) supporting MCA-Indonesia.

This report represents the first RDRA undertaken for the GPP by PMC, for South Solok District, West

Sumatra.

1.2 Objective Objectives of this RDRA were:

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

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

Compact conditions;

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

To assess investment opportunities within the district for environmentally sustainable and low-

carbon economic growth.

Section 2 Methodology

2-1

Section 2 Methodology

Activities and methods used for this assessment are described below:

Secondary data provided by MCA-Indonesia for South Solok included:

– District Regulation on South Solok Medium-Term Development Plan 2010-2015;

– District Regulation on South Solok Long-Term Development Plan;

– Strategic Plan for South Solok’s Regional Development Planning Board (2011-2015);

– South Solok District Spatial Planning 2012-2032;

– Strategic Plan for South Solok’s Mining and Energy Agency (2011-2015); and

– Slide presentation of South Solok in response to the Green Prosperity investment project.

Additionally, the PMC team also collected and reviewed the following documents:

– South Solok’s agricultural census 2013;

– South Solok District in Figures 2014; and

– Information from internet, including the South Solok District website: www.solselkab.go.id

Field visit and interviews. A field visit to South Solok District was conducted by the PMC team

from October 26 to 28, 2014, to better understand the local context for future GPP investment.

Target areas visited included: the general landscape of South Solok, rivers with potential for

development of renewable energy, agriculture/agro-forestry resources, and overall conditions

in South Solok including infrastructure and land uses. The PMC team met and conducted

interviews with the following District offices:

– Bappeda (District Planning and Development Board);

– Forestry and Plantation Agency;

– Agriculture Agency; and

– Energy and Mineral Resources Agency.

Minutes of meetings with the above organizations appear in Appendix 1. Photographs taken

during the field visit appear in Appendix 2.

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 Appendix 3.

http://www.solselkab.go.id/

Section 3 General Description of The District

3-1


3.1 Location and Accessibility South Solok is located in the province of West Sumatra, in high, mountainous terrain of the Barisan

Mountain range, southeast of the city of Padang. Given the mountainous area (at altitudes ranging

from 350 to 430 m above sea level), about 70% of the area has very steep slopes (i.e., >40%), while

about 15% is considered flat. Of the total district area of 359,013 ha, 42% is within Protection

Forest (150,532 ha, part of Kerinci Seblat National Park), with the remaining 58% (208,481 ha)

within cultivation/production area. South Solok has a wet, tropical climate, with average rainfall of

1,600-4,000 mm/year and an average humidity level of 80%. Wet seasons normally occur from

January to May and September to December, while dry season is normally occurs from June to

August.

South Solok District was established through Law No. 38/2003. The capital city of South Solok

District is Padang Aro. A map of South Solok District is presented in Appendix A1.

South Solok district can be assessed by road from the city of Padang (the capital city of West

Sumatra), the distance of 160 km or about 4-5 hours driving. Road condition is good with beautiful

mountain views, tea plantations, lakes, and an agricultural landscape along the way to Padang Aro,

the capital of South Solok District (see photographs in Appendix A2).

3.2 Demographics Based on 2013 census data, the population of South Solok is 153,943 people includes 77,525 men

and 76,418 women (sex ratio of 101.20:100), which grew by 5,506 people or 3.7% relative to 2012

figures. Population density averages 46 people per km2. The highest population density of 63

people/km2 is located in Sangir Sub District; lowest population density of 24 people/km2 is in

Sangir Balai Janggo Sub District.

Of the total working-age (>15 yrs) population of 61,449 people, 2,215 people are unemployed

(3.6%). Of the total working population, 27,347 people (46%) work agriculture and forestry, 11,640

(20%) work in community services, 9,435 (16%) work in trade, 1,585 (3%) work in manufacturing,

and 9,227 people (15%) other have other livelihoods.

3.3 Regional Economy 3.3.1 Performance for the Period of 2005-2010 From 2005 to 2010, the economic performance of South Solok has improved, indicated by an

increase in gross domestic regional product (GDRP) from IDR 710.1 billion in 2005, to IDR 817.9

billion in 2006, to IDR 1.41 trillion in 2010, an average increase of 6.15%, which is higher than the

overall West Sumatra provincial average of 5.51%.

Of the total 2010 GDRP of IDR 1.41 trillion, 38% was generated by the agriculture sector, followed by

the trade sector (18%). Four economic sectors showed an over-8% increase in GDRP, including

mining, energy, construction, and services. Agriculture, the dominant economic sector, showed a

GDRP increase of 4.6% from 2005 to 2010.

The rate of inflation in South Solok from 2005 to 2010 was stable, ranging form 8.53 to 8.62%.

Construction and trades are two sectors that have a dominant effect on the inflation rate.


3-2

Based on the Mid-term Regional Development Plan of Solok Selatan 2010-2015, the incidence of

poverty decreased from 17.43% (21,300 people) in 2007 to 11.11% (16,027 people) in 2010.

3.3.2 Development Targets for 2010-2015 From the base condition (2010), South Solok District has targeted the following development

achievements:

Economic growth of 7.24% in 2014 and 7.47% in 2015;

Human development index of 71.67 in 2014 and 72.27 in 2015;

GDRP of IDR 1.966 trillion in 2014 and IDR 2.105 trillion in 2015;

Unemployment rate of 5.68% in 2014 and 5.71% in 2015;

Poverty rate of 9.07% in 2014 and 8.56% in 2015; and

Number of disadvantage region/nagari of 12 in 2014 and 9 in 2015.

3.3.3 Low-Emission Economic Development West Sumatra Province plans to develop a Provincial Strategic Action Plan (SRAP – Strategi Rencana

Aksi Propinsi) for the implementation of REDD+, following the Indonesian national commitment on

emissions reduction. South Solok, with a high percentage of forest cover and potential natural

resources to support district development, has a strategic role to play in meeting the provincial

target. At the time of implementation of this DRA, a detailed SRAP had yet to be developed. A

workshop on the West Sumatra SRAP was held in Bogor, West Java on October 2013, where the

following low-emission development programs for West Sumatra were discussed:

Implementation of PSP (Permanent Sampling Plots) in West Sumatra (including one in

Simancuang Nagari forest in South Solok) to support MRV (Measurement, Reporting, and

Verification) REDD+ program; and

Community-based forest management (community forest, customary forest, community timber

estate). South Solok has the potential to development Nagari forest (nagari-traditional

government system, similar to ‘village’ at the national government structure. One ‘nagari’ can

consists of one or several villages. The area of ‘nagari’ is defined based on traditional/cultural

coundary). One Nagari Simancuang at South Solok is one of successful nagari and has become a

pilot for other nagaries in the district and province.

Because South Solok has high potential (due to extensive forest coverage) to become involved in the

REDD+ program, and because the SRAP has already launched (although not finalized), the low-

emission development program in South Solok will be a strategic approach.

3.3.4 Renewable Natural Resources Management South Solok has promising renewable natural resources to support sustainable development.

Potential renewable natural resources in South Solok that may be important to the GPP are:

Renewable energy:

– Geothermal resources , estimated capacity at 450-MW; and

– Hydropower resources, estimated capacity at 60-MW.


3-3

Nagari forest (HTN). There are five HTN already permitted by the Ministry of Environment and

Forestry, namely HTN Simancuang, HTN Pakan Rabaa, HTN Pasir Talang Timur, HTN Koto Baru,

and HTN Pulakek Koto Baru; and

Ecotourism. The landscape of South Solok has great potential for sustainable ecotourism

development, such as rafting, tea plantations and jungle/mountain hiking.

3.4 Spatial Plan The South Solok District spatial plan is legally enforceable through District Regulation No. 8/2012

Concerning Spatial Plan of South Solok District 2012-2031. Within this regulation, the whole area of

South Solok has been divided into the following designations:

Protected areas, consisting of: protected forest, watershed area, areas around water bodies and

traditional/cultural heritage, conservation areas (nature reserve, cultural heritage area, wildlife

sanctuary, areas prone to natural disasters, geologically sensitive areas;

(Renewable energy, such as hydropower and geothermal, may be developed within protected

areas with the permit from the Ministry of Environment and Forestry. Traditional-tenure forest

also can be developed and managed within the protected forest.)

Production areas, consisting of limited-production forest, production forest, convertible

production forest, community forest, agriculture areas, fisheries-production areas, mining-

development areas, tourism areas, and settlement areas; and

Buffer zones around national facilities within the District along national roads, around water

resources, around energy facilities, and around telecommunication facilities.

Section 4 Rapid Assessment Results

4-1


No. Factors

Determining District Readiness

Assessment Scoring and Discussion Document Reviewed

1. Political Analysis 1.1 Government

Transparency Policies

South Solok district has opened its policies to the public related to permitting procedures for renewable natural resources management (forest and plantation, renewable energy and ecotourism). Although it is not yet centralized in a one-stop permitting system (planned for 2015 implementation), it has successfully attracted private sectors and community groups supported by NGOs to participate in natural resources management. Within the Medium-Term Development Plan, South Solok has defined environmental conservation is a priority program and one of the key programs is improvement of quality and access to information related to natural resources and environment.

3 2 1 1. Mid-term Development Plan of South Solok (2010-2015)

2. Long term Development Plan (2005-2025) 3. South Solok District in Figures 2014 4. Presentation Ekspose Bupati Solok Selatan,

Regional Potential for Green Prosperity in South Solok District, 20 October 2014

Score 2 indicates that South Solok has a commitment to transparent governance in the permitting processes and local potential for renewable resources to be sustainably developed. The district website also has a page linked to district budget development: http://www.solselkab.go.id/ transparansianggaran.html but it is not yet working well. From the interview with Bappeda, the website will be redeveloped and improved to include aspect showing more transparent information/data for public. The District website is a positive indication of good governance and a better system in the future.

1.2 Commitment to low emission economic growth

West Sumatra Province has already developed the Strategic Action Plan for Province (SRAP) and has been socialized throughout all districts. South Solok has also prepared to respond the provincial target for low carbon emission development. On the forestry sector, there are five HTN (Nagari forest) that were granted a permit from the Ministry of Forestry in 2014. On the renewable energy, one geothermal project is started, 9 hydropower projects are permitted, and there is high potential in ecotourism and agro-forestry

3 2 1 1. Presentation Ekspose Bupati Solok Selatan, Regional Potential for Green Prosperity in South Solok District, 20 October 2014

2. SRAP West Sumatra for REDD+ (2013) 3. Strategic Plan of Energy and Mineral Mining

Agency (2010-2015)

South Solok scored 3 on its commitment to the low-emission economic development. The commitment is stated in the Province level and also translated into sectoral strategic plan (e.g., strategic plan of energy and mineral mining agency related to development of renewable energy as an alternative electricity source for remote communities located far from the grid).

http://www.solselkab.go.id/%20transparansianggaran.html



4-2

No. Factors



1.3 Potential land use conflict

There were several land conflicts identified between logging and mining companies and community within Nagari. A few conflicts were considered to be high intensity and have created local security issues. NGOs working on advocacy exist that are supporting communities dealing with private companies and government. Considering this situation, potential for land-use conflict is relatively high.

3 2 1 1. http://padangekspres.co.id/ ?news=berita&id=28085 (27 April 2012)

2. http://www.mongabay.co.id/2012/09/12/ lahan-pertanian-di-sumatera-barat- dilibas-tambang/ (12 September 2012)

3. http://www.hukumonline.com/berita/baca/ lt4e4cc1435b211/nasib-pengakuan-hak-nagari-dalam-pengelolaan-sumber-daya-alam-broleh--nurul-firmansyah- (18 August 2011)

4. Interview with Bappeda, Forest and Plantation Agency, Mining and Energy Agency, and Agriculture Agency, 26-27 October 2014

Despite the land conflicts between private companies and local community supported by NGOs, potential for renewable natural resources through a community-based approach are still promising. From the interview with Bappeda, Mining Agency, Forestry and Plantation Agency, and Agriculture Agency, district government agencies have a consistent commitment to reduce potential for conflicts in South Solok. Coordination among government agencies is important to peacefully resolve conflicts.

2. Institutional Analysis 2.1 Bappeda and Sector

Agencies South Solok Bappeda has a strategic plan for 2011-2015 that describes strategic issues for organizational tasks and function, description of the vision/mission/objective of the strategic plan, and performance indicators that link to the mid-term and long term development plan. Each District agency also has a specific strategic plan similar to the Bappeda’s.

3 2 1 1. RENSTRA Bappeda 2010-2015 2. RENSTRA Energy and Mining Agency 2011-

2015 3. Mid-term Development Plan of South Solok

(2010-2015) 4. Long term Development Plan (2005-2025) 5. Interview with head and staff of Bappeda, staff

and head of forestry and plantation agency, staff from energy and mining agency, and staff from agriculture agency (26-27 October 2014)

From the document review and discussion with the head of Bappeda, head of Forestry and Plantation agency, Mining and Energy agency and Agriculture agency, all related organizations have their own strategic plan that is linked with the District mid-term and long term development plan. The head of Bappeda said that all government institutions are ready to support the GPP and are happy to know that the grant budget allocated will directly flows to the community/ private sector under the approved program. Head of forestry and plantation agency expect that the GPP will strengthen and complement existing government programs.

http://padangekspres.co.id/

http://www.mongabay.co.id/2012/09/12/

http://www.hukumonline.com/berita/baca/


4-3

No. Factors



2.2 NRM Licensing process/procedures

Community forest, traditional-tenure forest, and community timber estates are established following the Ministry of Forestry Regulation No. 49/2008 (Village Forest), No. 52/2011 (Community Forest), and No. 23/2007-No. 31/2013 (Community Timber Estate). The role of local government (province and district) in those procedures is to facilitate and require local community to apply for a concession permit. District of South Solok is in the process of developing an action plan for regional investment that will be completed in 2015. At the mining agency of South Solok, a clear process of licensing for hydropower and geothermal is in place.

3 2 1 1. Interview with head and staff of Bappeda, staff and head of forestry and plantation agency, staff from energy and mining agency, and staff from agriculture agency (26-27 October 2014)

2. Presentation Ekspose Bupati Solok Selatan, Regional Potential for Green Prosperity in South Solok District, 20 October 2014

3. Ministry of Forestry Regulations No. 31/2013, No. 49/Menhut-II/2008, No. P.59/Menhut-II/2011, No. P.52/Menhut-II/2011, and No. P.37/Menhut-II/2007

South Solok has already in the implementation stage for natural resources management licensing. Examples of those license are: 9 licenses are granted for hydropower license

during the period of 2012-2013. More sites are being offered to public

There are 5 license for Nagari forest already granted in 2013-2014. One of the Nagari (Simancuang), is one of the best model in Indonesia (2014)

Community plantations are already in production, e.g., cacao (production capacity of 932 ton/yr), rubber (11,561 ton/yr), coffee (1,738 ton/yr), etc

2.3 Non-government actors affecting district development

NGOs exist and are involved in the development of South Solok. National and International NGOs include WARSI, WWF, Rainforest Foundation, HUMA, universities in Padang and Jakarta, and private companies and their CSR foundation. South Solok district has an MOU with those external organizations to accelerate their meeting of development goals and targets.


2. A Green WWF US and WWF Indonesia-Natural Capital Project. February 2012

3. Interview with head and staff of Bappeda, staff and head of forestry and plantation agency, staff from energy and mining agency, and staff from agriculture agency (26-27 October 2014)

WARSI implements a program related to strengthening the Nagari institution and natural resources management, as well as on renewable energy and REDD+ initiatives.

Rainforest Foundation supports the management of Nagari related to community-based NRM.

WWF initiated a RIMBA ecosystem which includes the entire South Solok District.

A MOU between South Solok Bappeda and Universities was signed in October 26, 2014.

2.4 Low level government offices (sub district and villages)

South Solok, as in all district of West Sumatra, has a traditional low-level government model called Nagari. One Nagari can be formed from one or several villages, depending on traditional territory from the historical aspect of the community. In 2014, Nagari Lubuak Malako achieved the best Nagari in West Sumatra. There are 7 sub districts and 39 Bagari in South Solok.

3 2 1 1. South Solok District in Figures 2014 2. Presentation Ekspose Bupati Solok Selatan,

Regional Potential for Green Prosperity in South Solok District, 20 October 2014

There are only few Nagari recognized as having outstanding achievements as Lubuak Malako. Many of them are still modifying their traditional governance to include national concepts of village governance. In few nagaries, they are worried if the Nagari, if not seriously managed, will slow change into the national village concept.

2.5 Other donor funded/NGO on

There are few programs implemented by international donors, such as:

3 2 1 1. A Green WWF US and WWF Indonesia-Natural Capital Project. February 2012 From assessment of selected past and existing


4-4

No. Factors



low-emission development (NRM RE)

UNDP baseline data collection and cadastral mapping for REDD+ implementation in West Sumatra (include South Solok) (ongoing)

WWF RIMBA ecosystem program (national and provincial level) (ongoing)

UNESCO Strategic Environmental Assessment related to road development across the Kerinci Seblat National Park connecting South Solok with South Pesisir District (ongoing).

World Bank FEATI (Farmer Empowerment Agricultural Technology and Information). There are 40 villages involved on that program (2012)

Those programs are quite relevant to the GPP focus area. UNDP cadastral mapping will support the PMAP (Participatory Mapping) program, WWF RIMBA program could have the synergy of the landscape approach adopted by the GP program, the UNESCO program could provide information on other sensitive areas and potential threats of road construction to future GPP implementation in South Solok. The FEATI program could provide good baseline data on farmers to be further engaged by the GPP.

international donor program, which could potentially collaborate with the GPP, South Solok will have a more competitive and conducive business climate to be further intervened by the GP program.


3. http://sumbar.litbang.pertanian.go.id/ind/. Advokasi Inovasi Teknologi FEATI di Kabupaten Solok Selatan (19 November 2012)

http://sumbar.litbang.pertanian.go.id/ind/


4-5

No. Factors



2.6 Public participation Public participation in South Solok is considered high and conducive to the GPP. The key factors of this success are active participation from government officers in working together with communities, and also selected programs that directly deal with important community-livelihood sectors. However, there are issues related to rapid generation of income through illegal logging and artisanal mining. Hunting and selling wildlife also occurs in South Solok.


2. http://selasarselusur.blogspot.com/2013/06/ Teras Dunia Maraknya Perburuan Harimau Sumatra

Beside high participation from the community in development programs initiated by government or by external organizations, there remains potential risk of people to contribute to and participate in counter-productive activities such as illegal logging, artisanal mining, land clearing, and wildlife hunting and trading.

3. Regulatory Analysis 3.1 Regulatory

framework enabling GP Project Investment

Regulations concerning management of community forest, village forest and community timber estate follows central government regulations (regulations of the ministry of forestry). South Solok District is in the process of developing an action plan for investment in natural resources management. Permitting and regulation related to renewable energy already is well developed but would be improved by a one-stop permitting process utilizing an eProcurement system.


2. Ministry of Forestry Regulations No. 31/2013, No. 49/Menhut-II/2008, No. P.59/Menhut-II/2011, No. P.52/Menhut-II/2011, and No. P.37/Menhut-II/2007

A permitting process for natural resources management is already in place, with some important projects have already started. However, an improved permitting system is still needed. South Solok is in the process of establishing one-stop permitting services, planned to start in 2015. The district also will improve the performance of electronic data services for effective implementation of electronic procurement and data management through an Information Management System.

3.2 Safeguards on human health, livelihood and environment

South Solok District does not have an Environmental Monitoring Agency. The Environmental Office does not yet have the capacity for evaluation or recommendations for environmental permits for any development. However, they have good coordination with provincial agencies. Environmental safeguards (standards, guidelines) follow national/provincial regulations. Ministry of Health regulations are followed for human health safeguards. EIA regulation (Government Regulation 27/2012) includes human health assessment.

3 2 1 1. Decree of the Governor of West Sumatra No. 660-30-33/1996

2. Governor Regulation No. 25/2010 concerning implementation of environmental standard in West Sumatra

3. Regional Regulation of West Sumatra No. 4/1989 concerning management and protection of environmental

South Solok follows Provincial and National regulations/safeguards related to environment, social and human health for any development related to natural resources management and community livelihood. There are no local district regulations related to environmental and social standards. The environmental monitoring office also has not yet has the capacity to review and approve EIA for development.

http://selasarselusur.blogspot.com/2013/06/


4-6

No. Factors



3.3 PEST (payment for environmental services)

Beside high potential for natural resource development that are also potential for initiation of payment for environmental services. Regarding renewable energy, there is a mechanism of payment for sustainable services and operation of hydropower facilities for nagari. There are 27 micro-hydro sites managed and operated by local communities, with total energy generation of 512 KW. This was developed and operated from 1985-2013 and was initially funded by central government, province and the PNPM program. Ecotourism in South Solok also already implemented and the PES system also used.



3. Suyanto, S., et al (2005). Review of the Development environmental services market in Indonesia. ICRAF

The implementation of PES in water resources through the operation of micro-hydropower is very good and has contributed to the village electricity program. Its real contribution to economic development has not yet studied, but a positive contribution to local economic development is highly likely. There are not just water and tourism resources that can be managed using the PES system; South Solok needs to advance the coverage of the PES to other natural resources available in the district.

3.4 Local government incentives for green investment

There are no specific incentives provided by the district government for any green investment or lower-emission development. This is because most developments are already categorized as green (forestry, plantation, hydropower, etc).



3. http://www.antarasumbar.com/berita/ nasional/d/0/216800/ kemenperin-siapkan-insentif-untuk-industri-hijau.html

The incentive for green investment or development is regulated by the Ministry of Trade and Industry. It is not clear if the province or district uses this incentive to attract more companies to apply green technology or development to increase investment in South Solok.

3.5 Local government and community contribution to environment

From the above assessment related to NRM, transparency of policies, community participations, involvement of external organization, etc, it can be concluded that both local government and community has contributed to environmental sustainability. South Solok implements trees planting, even though 60% of South Solok area is forest/vegetation cover. Hydropower studies and attracting public to be involved in these developments also shows the contribution of local government to a support a cleaner environment.



3. RENSTRA Bappeda 2010-2015 4. RENSTRA Energy and Mining Agency 2011-


(2010-2015) 6. Long term Development Plan (2005-2025)

It is concluded that government of South Solok and community has a strong commitment to the environment. Traditional nagari governance is the key component of the capacity and ability of local community and lower government to contribute to their environment.

4. Social and Gender


4-7

No. Factors



4.1 Status of gender mainstreaming in the district

South Solok, as it is part of the Minangkabau ethnic group, is matrilineal and therefore it has allowed women to hold a relatively strategic position in the society compare to other patriarchal society. In the Minangs community, most property and other economic assets pass through female lines.

3 2 1 1. Meiyanti and Syahrizal. 2005. Gerakan Perempuan dan Keterlibatan Perempuan dalam Pembangunan Nagari di Era Kembali ke Nagari. Andalas University.

2. Syahtizal, Sabani, Leila, dan Damsar. 2010. Partisipasi Perempuan Minangkabau dalam Pembangunan Nagari

3. Ministry of women empowerment and child protection and the National Statistic Bureau. 2013. Gender based human development.


The traditional wisdom of Minangs related to women participation in the community is an advantage for any programs to be gender mainstreamed. Related to nagari government, research conducted by an expert from Andalas University concluded that the Nagari governance gives more opportunity for women to be involved in local economic development (Meiyanti and Syahrizal, 2005). Publication from the Ministry of Women Empowerment and Child Protection (2013) stated that South Solok has a women participation index of 64.80 (average for West Sumatra is 70.11), women empowerment index of 57.34 (average for West Sumatra is 65.22), participation of women in parliament of 8% (average west Sumatra is 12.73%), women as manager or professional position of 58.95% (average for west Sumatra is 54.19%) and contribution of women to family income of 33.95% (average for west Sumatra is 35.55%).

4.2 Vulnerable community groups

Vulnerable groups in South Solok are primarily people who live in poverty, who constitute 9% of the total population. From interview with Bappeda and other government officer from several agencies, there is not suppression or marginalization of vulnerable groups in South Solok. Instead, government and Nagari try to improve their economic level out of poverty.


2. RENSTRA Bappeda 2010-2015 3. RENSTRA Energy and Mining 2011-2015 4. Mid-term Development Plan of South Solok


Existence of vulnerable poor people in South Solok is a challenge to be targeted for reduction or alleviation. Government commitment for alleviate this vulnerable groups is high and this will be consistent with the mandate of the GPP.

4.3 Customary laws and its effect in district development

West Sumatra, including South Solok, has local traditional/customary laws that have been used from long in the past. The Minangkabau customary laws now is seen as local potential factor that can potentially used to strengthen economic development. Empowerment of Nagari in South Solok is one example on how important of local customary laws in the economic development in West Sumatra, including South Solok.


2. RENSTRA Bappeda 2010-2015 3. RENSTRA Energy and Mining Agency 2011-



Existence of Minangkabau customary law, through the Nagari empowerment program, is very positive and could strengthen the development in South Solok and West Sumatra. These customary laws have rules related to land ownership and management, natural resources utilization, women participation, resolution of conflicts, etc, which are important to support any program in the district development.


4-8

No. Factors



5. Status of Requirements for Compact Conditions 5.1 Approved

RTRW/Spatial Plan South Solok has an approved Spatial Plan that has been used to plan and develop the district. It is regulated under the District Regulation No. 8/2012 concerning Spatial Plan of South Solok District 2012-2031.

3 2 1 1. Perda No. 8/2012 concerning Rencana Tataruang Wilayah Kabupaten Solok Selatan tahun 2012-2031

2. RENSTRA Bappeda 2010-2015 3. Mid-term Development Plan of South Solok


Approval of the District Spatial Plan will provide certainty for the GPP in South Solok. However, a system to enforce the spatial plan and to anticipate any potential conflict needs to be further improved. A Spatial Plan Coordination Agency (BKPRD – Badan Koordiasi Perencanaan Ruang Daerah) exists and should become an important institution to ensure project compliance with the spatial plan.

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

District of South Solok provides open access to data and information to support the local economic development. A centralized, web-based system is being developed and an office (electronic data center) will be established to implement that plan.

3 2 1 1. http://www.solselkab.go.id/ transparansianggaran.html


The electronic data center is already exists under the Bappeda, but does not yet function well. A website indicating information openness also has been developed but similarly does not yet function optimally. Bappeda of South Solok states their commitment to support GPP investment.

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

South Solok is located in an area surrounded by primary forest and some of those forest area are designated as Protected Forest and National Park (Kerinci Seblat National Park). WWF, in partnership with province government in Sumatra, and with the Ministry of Environment and Forestry, has also delineated a RIMBA ecosystem, in which the whole area of South Solok are within the RIMBA ecosystem. WWF and other international and National organizations are very keen to support South Solok, and this become an important value added.


2. Presentation Ekspose Bupati Solok Selatan, Regional Potential for Green Prosperity in South Solok District, 20 October 2014

3. South Solok District in Figures 2014

Ongoing and promising area for future integration with GP intervention: District government has identified potential for

renewable energy development.Approval of five HTN (Nagari Forest) by the Ministry of Forestry.

Nagari system can strengthen any development program. One Nagari (Simancuang) is one of the best Nagari in West Sumatra and at is recognized at the national level.

Land suitability for prime commodity such as cacao, rubber and other product.

Summary 1. POLITICAL ANALYSIS 7 2. INSTITUTIONAL ANALYSIS 16 3. REGULATORY ANALYSIS 10 4. SOCIALAND GENDER 8 5. STATUS OF REQUIREMENT FOR COMPACT CONDITIONS 8 TOTAL 49



Section 5 Conclusions

5-1

Section 5 Conclusions

Based on prescribed RDRA criteria described in Section 4, South Solok scored 49 out of the possible

60 points. This is a very good score and indicates a commitment and readiness of South Solok to

receive GPP investment. The only aspect that received a minimum score of 1 was real incentives that

the local government can provide for green development. This is a potential area of intervention for

MCA-Indonesia in South Solok.

The South Solok government expressed their great interest in GPP investment, and anticipate the

next step of the program, which is mapping of potential areas for intervention. Related to this

intervention, South Solok District has proposed to include four HTN (Nagari Forest) to be mapped

out through a participatory-mapping approach. Those four HTN are:

1. HTN Pasir Talang Tuo, at Sungai Pagu Sub District. Total area of 2,395 Ha, consists of 783 Ha

within Protected Forest and 1.612 ha within Limited Production Forest). Already obtained the

Permit from the Ministry of Forestry No. SK 854/Menhut-II/2013, 2 December 2013;

2. HTN Koto Baru, at Sungai Pagu Sub District. Total area of 1,145 Ha, consists of 319 ha within

protected forest and 826 within limited production forest. Permit from Ministry of Forestry No.

SK 855/Menhut-II/2013, 2 December 2013;

3. HTN Pakan Rabaa, at Koto Parik Gadang Diateh Sub District. Total area of 4,260 Ha, consists of

2,460 ha within the Protected Forest and 1,800 ha within Limited Production Forest. Permit No.

SK 852/Menhut-II/2013, 2 December 2013; and

4. HTN Pulakek Koto Baru, at the Sungai Pagu Sub District. Total area of 4,265 Ha, consists of

2,255 ha within the Protected Forest and 2,010 Ha at the Limited Production Forest. Permit No.

SK 852/Menhut-II/2013, 2 December 2013.

The South Solok Forestry and Plantation Agency also proposed that a study be conducted to

inventory tenurial forestry activities within all forests of South Solok District. This is essential to

manage forestry activities from individual/community groups, which can be more difficult than

management of forest-concession companies. Inventory of tenurial forest activities will be important

for future improvement of forest management in South Solok District.

Appendix A

Maps of South Solok District

Appendix B

Photographs of South Solok Landscape

Landscape of Barisan Mountain Ranges and the Kerinci Seblat National park, on the way from

Padang to South Solok District.

Landscape of South Pesisir District showing agriculture and forest landscape.

Landscape of South Solok district showing paddy field combined with plantation (palm oil). South

Solok is one of paddy producer in West Sumatera Province.

One of river in South Pesisir district, a potential for hydropower development.

One of river in South Solok District, looking from the bridge at the main district road.

South Solok has many waterfalls and some of them have been used to operate micro-hydro power

development.

Appendix C

Summary of Field Observation Activities

No. Activities Notes

1. 27 October 2014, Arrive in

Padang and visited Bappeda

Province. Met and discussed

with the head of Economy

Division

Introduction of the visit and informed the general plan and

objective. Item discussed: the next step after the DRA, and in

general the content of the MoU (was not discussed about the

content, since this is not part of the DRA scope). A contact for

person in South Solok Solok was provided and an appointment

was made for a meeting with Bappeda at South Solok.

2. 27 October 2014. Travelled

to South Solok.

A 4.5 hours drive. A very beautiful landscape and view along the

way (RIMBA forest and Kerinci Seblat National Part, tea

plantation, lakes, and agriculture areas. Arrived at Padang Aro,

South Solok, safely.

3. 28 October 2014. Meetings

were conducted with:

Bappeda (Pak Dedi and

the head of Bappeda of

South Solok)

The Head of Forestry

and Plantation Agency

Mining and Energy

Agency

Agriculture Agency

Meeting with the head of Bappeda discussed the following

agenda:

The mission of the DRA visit and overview of the MCA-

Indonesia Green Prosperity project and what next after the

DRA

Bappeda is very welcome with the program and will

provide necessary support to the MCA-Indonesia

(permitting, coordination and facilitation, data support)

South Solok has a lot of potential in its natural resources to

support the GP MCA-Indonesia e.g., forest area,

agroforestry, renewable energy (hydropower, geothermal)

On the village level, South Solok has at least four or five

pilot Nagari (village) that can be seen as a target for the

MCA-Indonesia Green Prosperity program.

Bappeda is also happy if the MCA-Indonesia GP program

will finance the project directly to the beneficiaries, and not

through the government budget planning. Bappeda needs

this kind of complementary or program partner to speed up

the development of the district.

Bappeda will facilitate and support the DRA visit and has

coordinated with other offices for further discussion and

meetings.

Discussion with Mining and Energy Agency:

South Solok has identified almost all resources potential

for renewable energy (hydropower and geothermal).

Assessment on other potential will be continued as a

regular program of the Agency;

Permit for micro-hydro, mini-hydro, and geothermal has

made into public and everybody can have an access to it

and apply for a permit.

Currently one company is in the construction for the

geothermal. There are also mini-hydro projects being

developed. The issues of mini-hydro located within

protected forest or in conservation areas are it takes a long

time for the AMDAL, although from the size of the mini-

hydro, it is only require an UKL-UPL study.

The Agency regularly check the operations of micro-hydro

and mini-hydro to identify any issues and to ensure that

electricity supply to the remote areas will not be disturbed.

There are not many mining operations in South Solok. One

gold mining is still in the exploration. Illegal mining

activities are getting increased and has created issues

within community. People believe that South Solok has a

high potential of gold deposit.

Sand mining practices has created environmental issues,

where the wastewater used for cleaning the sand and also

transferring sand from high altitude to lower area and the

very turbid water is discharge directly to the river.

Discussion with Forestry and Plantation and Agriculture

Agency:

Forestry agency support the MCA-Indonesia as this

program is inline with the national and provincial objective

of emission reduction. Before any program can be

implemented, it is important to delineate the area (which

will be within the village/nagari), therefore, area boundary

mapping is important.

Potential projects in South Solok: agroforestry, biodiversity

program involving local community, silvo-fishery

(freshwater aquaculture).

Forestry agency is aware of the REDD+ baseline and

cadastral mapping and has discussed with the consultant to

include one nagari, out of 5 permitted nagaries, to have a

boundary mapping project. It will be good to include the

other four nagari mapping into the participatory mapping

under the MCA-Indonesia.

3. 29 October 2014 Site seeing and observation (along the way back to Padang) in

the morning and travelled back to Padang and continue to South

Pesisir in the afternoon.

millennium challenge account-indonesia ......people/km2 is located in sangir sub district; lowest...

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