technical assistance consultant’s report · cemetery or burial, and in this village there is the...

Technical Assistance Consultant’s Report

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Project Number: 47144-001 August 2016

REGIONAL: Mitigation of Hazardous Waste Contamination in Urban Areas: Supporting Inclusive Growth (Financed by the Japan Fund for Poverty Reduction)

(Appendix F [2 of 2])

Prepared by Pure Earth Blacksmith Institute New York, USA

For Urban Development and Water Division, SERD, ADB Ministry of Environment and Forestry, Indonesia Department of Environment and Natural Resources, Philippines

RETA 8458-REG Mitigation of Hazardous Waste Contamination in Urban Areas: Supporting Inclusive Growth,

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2. Hazardous Contamination Issues in Tegal

Lead Poisoning

Lead is a toxic metal whose widespread use has caused extensive environmental

contamination and health problems in many parts of the world. It is a cumulative

toxicant that affects multiple body systems, including the neurological, hematological,

gastrointestinal, cardiovascular and renal systems. Children are particularly vulnerable

to the neurotoxic effects of lead, and even relatively low levels of exposure can cause

serious and, in some cases, irreversible neurological damage (see figure 6). Lead

exposure is estimated to account for 0.6% of the global burden of disease, with the

highest burden in developing regions. Recent reductions in the use of lead in petrol

(gasoline), paint, plumbing, and solder have resulted in substantial reductions in lead

levels in the blood. However, significant sources of exposure to lead still remain,

particularly in developing countries. Further efforts are required to continue to reduce

the use and releases of lead and to reduce environmental and occupational exposures,

particularly for children and women of child-bearing age.

Figure 6. The health impacts caused by lead-poisoning (source: NSW-EPA, 20xx)

Lead is found at low levels in Earth’s crust, mainly as lead sulfide. However,

the widespread occurrence of lead in the environment is largely the result of human

activity, such as mining, smelting, refining and informal recycling of lead; use of

leaded petrol (gasoline); production of lead-acid batteries and paints; jewelry making,

soldering, ceramics and leaded glass manufacture in informal and cottage (home-based)

industries; electronic waste; and use in water pipes and solder. The demand for Lead is


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steadily increasing worldwide. As lead is an element, once it is released into the

environment, it persists. Because of lead’s persistence and potential for global

atmospheric transport, atmospheric emissions affect even the most remote regions of

the world.

Lead smelters emit lead and other metal particulates into the air, which can be

carried downwind and deposited in soil. This deposition is important because lead is

relatively persistent and immobile in the environment and may accumulate at the soil

surface where people may be exposed. In 2011, Ministry of Environment the Republic

of Indonesia and KPBB suspected historical household lead smelting sites in several

districts in Jakarta greater area, District of Tegal Central Java and District of Lamongan

in East Java, and requested an investigation of lead contamination. Due to the lack of

evidence found at that time regarding potential past releases of lead from the smelter

sites, no further action was taken.

Figure 7. Lead poisoning mechanism


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Geographical issue

As mentioned before, we define the study area for urban redevelopment in

Tegal Regency by considering first, the spatial distribution of the ULAB-contaminated

land, second, the presence of relocation area (PIK Kebasen), and third the form of

intervention, especially spatial planning regulation to mitigate the contaminated land.

Based on our random measurement in surrounding smelters in PIK Kebasen and metal

industries in Pesarean, the location of high-contaminated area found in radius 100

meter from the industrial activities. There is no specific wind rose direction where the

Pb-contained land is concentrated. The distance from Pesarean to relocation area (PIK

Kebasen) is only 1.3 km. Having had considered the characteristic of the contaminated

land and based on the planning regulation (Permen PU 6 /2007), the area that can be

proposed to have the planning intervention is about 30-60 ha. Therefore, we propose

the study area is a corridor that lie between Pesarean and PIK Kebasen and named as an

eco-recycling industrial corridor (ERIC) (see figure 6).

Figure 8. Map of ERIC Study Area

Figure 6 shows the delineation of Integrated Special Area is about 100 hectares.

It is one of recommended input how to treat suspected contaminated area and its

surrounding that considers the potentiality of local government intervention, the

similarity of social and economical condition, and the distribution of lead

contamination. The 100 ha-ERIC zone is located in the Adiwerna and Talang sub-

districts. The land use pattern is dominated by the paddy field and rural settlement that

tends to be transformed to urban settlement. The main irrigation still serves the paddy

field continuously and it thus becomes the most productive farming land in Tegal

district. The rural settlement is formed as an agglomerated zone of permanent and non-

permanent houses, which is quite dense and irregular form. There are two main


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distance of smelting area to residential area so that the impact of melting can be

reduced. However, it should be noted that the smelting activities in PIK have not

applied the countermeasure for pollution. The smelting process still adopts the old

techniques and technology that generate hazardous waste and allow for contamination.

Figure 10 showing the location of PIK area.

Figure 10. The PIK Kebasen Area

The green line polygon indicates the area of PIK that was accommodated by the

general spatial plan of Tegal districts. Meanwhile, the yellow line informs the site plan

of PIK development that was taken from the document of environmental impact

assessment (UKL/UPL). Based on the pictures, there is still a vacant land that was

proposed to anticipate the development of industrial activities and it also shows that the

existing building pattern that showed by the Google earth image is not the same as the

site plan. As showed by red points in Figure 10, this PIK area also still indicates the

lead contamination in the certain places, mostly in the north side. The location is

relevant with the daily wind direction in the evening when the burning activities usually

operates.


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"sare" which in Javanese means sleep. "Pesarean" itself in the Java language berate

cemetery or burial, and in this village there is the tomb of Sunan Amangkurat 1 and

Raden Ajeng Kardinah (younger sister of Raden Ajeng Kartini). This cemetery is the

local identity of Pesarean.

Figure 12. The Study Area of Pesarean

This study area for urban redevelopment consists of several blocks and zones

that were based on the similar characteristic of building, administrative boundary, and

the lead concentration. The high-contaminated land of Pesarean is the main reason for

conducting urban redevelopment. It is not only about the environment, but also the

fortune of 5000 people (mostly poor), 38 neighborhood units, and the cultural heritage.

The urgency of redevelopment is very high to help this community find better

environment for living. Since long time ago, Pesarean has been known as ‘Tegal(an)

Arum’, which mean fragrant land. The most interesting land in the Mataram Era, where

the King of Mataram Amangkurat I appointed it as a funeral place for him. The

changing landscape and degraded environment thus need to be redeveloped.

PESTLE Analysis

PESTLE analysis is an essential management tool that assesses the macro-

environmental situation. It is generally conducted to help decision-making of the

project and other management processes. Numerous factors influence or determine the

environment of the contaminated land, which should be identified, understood, and

analyzed by the assessor. The factors consist of political, economical, social,

technological, and environmental aspects.


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Political aspects mainly assess the government agencies and leadership of the

officers in terms of their ability to manage the hazardous contamination. The main

issues addressed in this section include political will, incentive policy, and bureaucracy

and coordination. Economic aspects mainly discuss about the recycling costs, local

labor costs, ULAB market, sludge costs, finance, site costs, worker’s income, and

technology costs. Social aspects basically talk about the health impact, social gap, local

community awareness, campaigns, and tradition. Technological aspects mainly discuss

about processing and managing the smelting activity such as material collection,

smelting technology, sludge collection, sludge processing, dust absorption, sludge

dumping, and clean up. Legal aspect is about hazardous waste protocol, landfill

restriction, land-use and building permit, planning system, spatial planning regulation,

and surveillance and control regulation. Environmental aspects mainly talk about

landfill availability, land population, ground water population, air pollution, and

sanitation hygiene.

Based on our professional judgment after looking at the data, talking with the

stakeholders, and field visit frequently to the project site, we discuss to describe the

situation of Pesarean. In summarizing our description, we categorized into three levels,

-high, medium, and low- to inform the PESTLE situation.

Politic

As stated in RTRW and RPJMD Tegal, the visioning to promote the sustainable

development and healthy living has been clearly perceived as a main principle for

directing the development pathway. In the kick-off meeting, the Bupati has also

asserted the dangerous of smelters if no strong environmental monitoring. He invited

the meeting participants together achieving the healthy and sustainable Tegal.

However, in the technical level, the proper method to ensure the smelter activities can

perform without polluting the environment is still not available. The type of household

industries may create social problems if taking a wrong step in managing the smelters

activities. The chairman of BLHD argues that it was being grateful to have the smelters

relocated in PIK Kebasen. Moreover, asking the smelters to provide the proper

technology. Therefore, the local political situation is strong at the visionary level, but

still weak in technical management part.

In line with this, the enforcement of spatial planning law has not been properly

conducted. The building permit in Tegal Regency is still rare to be found at the village

houses. Only for the large buildings, the building permit has been granted. Based on

our field survey in Pesarean, most of the houses, where recycling activities also take

place, have no building permit. When we asked about the mechanism of building

permission, the representative of Planning Agency said that they are still continuously

promoting the importance of building permit. However, without continuous monitoring

and hard sanctions, the enforcement of spatial planning law only hits the wall.

In addition, the coordination and bureaucracy of this smelters and metal

recycling industries is very weak. The mixed metal and ULAB industries has created

different perception on the division of responsibility among technical department of

Tegal Government. As regulated by the Central Government, the responsibility to

manage hazardous waste industries belongs to the environmental agency (BLHD). But,

the technology transfer in the industrial sector should be belonged to the industrial and

trading department (Disperindag). At this moment, the cooperation between BLHD and

Disperindag is still weak, especially in controlling the PIK Kebasen activities and

managing the metal crafting industries in Pesarean.


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Economic

The business scale of smelters industries in Tegal district is mainly a household-

and smallholder’s size. For the ULAB smelters in PIK Kebasen, the operational cost is

generally spent daily and uses cash money. The worker gets IDR 45 – 75 thousand per

days in average, meanwhile the owner gets vary between IDR 30 million – 250 million

per month or around IDR 1 – 8 million per months. The cheap-wage of labor is not also

supported by the safe environment and health insurance. This phenomenon indicates

the unfairness of economic benefit that generated from the ULAB smelters’ activities.

In general, the smelter industries buy sludge as their raw material from the

outside of region. The sludge is easily to be found. They made tin bars and sell them to

the bigger industries. Based on our questionnaires, the business actors who moved to

PIK were only charged investment fee as much as 7 – 10 million rupiahs per lot (price

in 2007) for area of about 100 m2 per lot. The price of lot in 2015 became 50 million

per lot and even so now there are no more new lots unless over-handed among the

owners/UKM. Then, economic value indicators that can be compared among UKMs

still operating in and outside PIK are seen from their business turnover. Based on the

survey result to 10 out of 40 UKMs in PIK, the average sales turnover is 420 million

IDR per month. While the survey result to 19 out of around 60 UKMs in Pesarean

village is about 85, 8 million IDR per month.

Even though the economic entities of the PIK Kebasen is cooperative, they do

not use the financial institution e.g. bank to access the credit scheme. The traditional

mechanism and counting on the human-power makes this business facing difficulties to

be grown up, but still are feasible enough for individual or group business. The high

rent-cost of PIK without environmental friendly technology also becomes the main

reason why the other metal industries beside of ULAB are not willing to move to PIK

Kebasen.

Due to the limited capacity of PIK and other factors, there are many business

actors including the metal smelters still do their business activities in settlement area

located in Pesarean village area. The business actors who are still in the settlement area

consist of metal smelter (16 people), comprising ULAB smelter (4 people), copper

smelter (1 person), brass smelter, aluminum smelter (3 people), and metal material

craftsmen around 30 people.

Economic condition of business activity for both battery smelters and metal

smelters as well as metal craftsmen before and after relocated to PIK location is not

known for sure, but if seen in term of place, PIK location is more convenient to add the

production capacity.

Social

Based on 2013 census, Tegal District population was about 1.415.009 people

consisting of 703.494 males (49.72%) and 711,515 females (50.28%). The population

growth between 2011-2013 is about 0.53% per year. This growth rate is not so high

compare to the provincial or national growth rate. Tegal population is projected reach

two million people by 2030 (RTRW Tegal, 2011). In addition, the age composition of

Tegal district shows that the young-age group is dominant. Median age describes the

population division into elderly and youth groups. Based on the result of counting using

the population data of Tegal District year 2015, the median age of Tegal District

population is 25 and 18 years old.

Pesarean is one of the villages in Tegal district. The village of Pesarean is the

old village and has long story related to the Mataram Kingdom. Currently, the village


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is led by Head of Village and under control of Sub-district of Adiwerna, one of the sub-

districts among 18 sub-districts in the Tegal District. Adiwerna sub-district itself, has

22 villages include the village of Pesarean. Adiwerna is the second highest area of

population, together with Bumi Jawa and Kramat sub-districts. The population of

Adiwerna sub district reaches 150,545 people. Meanwhile, the population of Pesarean

village in 2013 was 12.675 inhabitants comprising 52% males and 48 % females.!The

median age for the population in Pesarean village is 31 and 36 years old, which is

above the median age of Tegal District. It means that the potentiality of having labor

force in Pesarean is higher than Tegal itself.

As well as typical of villages in Java Island, the village of Pesarean has

autonomy to regulate and manage many aspects of development and social relationship

in the village. The mostly affair in relation with development and social relationship

just manage by village management that is led by Head of Village, except the (1)

education, (2) religion, (3) financial, and (4) defense/security. For another, head of

village have autonomy to manage depend on local wisdom.

The government of village is the oldest democracy system in Indonesia. The

head of village is elected by people, and has mandate to regulate and manage the social,

economy, culture, agriculture, local industry/trading, etc. The head of village is

supported by Secretary of Village as second person in the village, and also supported

by Head of Governance Affair, Head of Development Affair, Head of Social Welfare

Affair, Head of Financial Affair, and Head of General Affair.

In the past, Government of Pesarean Village has main revenue from harvest of

farming on lemah bengkok (village owned land), that cover around 35 Ha, then used

40% result of harvest farming is allocated for operational to manage and regulate all of

affair in the whole of village include to village staff payroll and another overhead cost.

Meanwhile, 60% of remaining is allocated for head of village (25%), Secretary of

Village (10%) and each head of affair (5% each). The surplus fund of operational cost,

added with another revenues are allocated to acquire the land, and accumulated to the

village asset as lemah bengkok. Currently, the lemah bengkok is not enough to

support operating cost and expenses of the village, another status lemah bengkok are

just not manage well, then almost 100% operating cost and expenses are covered by the

subsidy from central, province and district government.

Figure 13. Structure of Tegal Village Government

Formally the village is managed by Head of Village, but unfortunately many

informal leaders, e.g. head of religious organization, head of youth, the richest


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entrepreneur, the head of freeman, etc. also influence the leadership process in the

village. In some cases, sometime the democratic process –head of village election-- in

the village was became worse because the influencing of other interest of informal

leader.

In regard to the social condition, most of Pesarean people perceive the

phenomenon of ULAB smelters and metal industries as a part of their daily life. The

practical knowledge of metal crafting has been institutionalized from generation to the

next generation. Thus, Pesarean is identical with the metal producers, rather than the

location of cultural heritage. However, several NGOs and local media have ever

revealed the lead contamination issues of Pesarean, even though the pro-contra of

smelters is not explicitly raised up to the surface. In addition, at the community level,

people are aware about the danger of smelters, but they do not enact the individual

protection both in the working area and house. The high dependency between the

workers and the smelters’ owner in economy has overridden the health and

environmental impact of smelters.

Technology

ULAB smelting is a process that handles and produces hazardous and toxic

wastes. Therefore, it shall be done using certain technology requirement and rigid

standard of procedure to make sure that the operation does not contaminate the

environment and harm human health. The standard of procedure include stages in

ULAB recycling, i.e. collection, packaging, transportation, and ULAB recycling

process itself. ULAB recycling unit shall concern 4 (four) factors, i.e. environment as

it is shall not cause polluting emissions; safety and hygiene, especially to prevent

occupational hazard; and operating practices.

In an environmental friendly ULAB recycling, ULAB is broken using a

mechanical process, and the combustion is done in an enclosed/hooded facility with a

clean and tidy working environment. The combustion facility must be attached by

hygiene and furnace ventilation to separate bag houses.

Based on our site visit and several interviews with the owner and worker of

ULAB smelters and other metal industries, we found that the way of the industries

operates are still far from the using of high-modern and environmental friendly

technology. If we dis-assembly the metal-recycling process into several steps, such as

the sludge collection/dumping, sludge process, smelting process, dust absorption, and

clean up process, those processes do not use proper technology.

• Smelting technology (low)

• Storage of ULABs (low)

• Dust absorption (very low)

• Slag storage and dumping site (very low)

• Clean up (very low)

Due to declining intensity of smelting activities in Pesarean Village, we did not have

the opportunity to see firsthand how they are carried out. Therefore, we tried to make

assumptions based on equipment that we saw in the field and secondary data, especially

photographs of a field trip ever undertaken by the Ministry of Environment and the

Environment Management Agency of Tegal District,

• Metal and used batteries smelting were done simply with an open burning system.

Material stacked in a drum or wells then burned and molded into metal ingots. All


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process were done completely manual and the workers did not were adequate

personal protective equipment;

• Combustion system with open burning is done without the necessary dust

absorption, so that any dust combustion products dispersed into the surrounding

environment;

• Furthermore, dirt combustion products discharged / stacked around the site of

combustion and at a certain volume to be transported to the open dumping site. One

of the open dumping sites in Pesarean Village was used to wallow with a depth of +

20 meters;

• Information collected from several stakeholders mentioned that there is sludge that

was used as the house foundation of the house and some were transported to CV

Lut Putra Solder as raw materials for brick and paving block;

• Beside the efforts to utilize the sludge as a raw material for bricks and paving

blocks, there are no measures for the recovery of hazardous waste contaminated

land in Pesarean Village.

• There are not found the acid treatment facility, our assumption they received the

drained ULABs or if they receive ULABs with acid than they just discharge the

acid directly to the environment.

Legal

Pesarean also known as the traditional knowledge center of metal crafting since

for many generations it has been locally evolved and socialized to the Pesarean

residents. Up to now, the metal crafters have spread to the neighboring area, such as

Talang, Adiwerna, and Lemah Duwur sub-district. Government of Tegal District

recognizes the metal recycling industries as one of the potentials of local economy. The

mid-term development plan (RPJMD 2009-2014) has stated that the industrial

development focuses on metal-foundry, batik, and karst mining industries. Following

this, the government also aims to focus the empowerment of people-based economy.

However, for the last five years, the number of small industries has decreased from

28.980 units in 2010 to 24.362 units in 2014 (SIPD Kabupaten Tegal, 2015). Therefore,

the small-industrial holders such as the recycling industries are still the main target

group of industrial development for the next five years.

The other relevant information related to the RPJMD 2009-2014 is the absence

of environmental control policies, especially for the mitigation policy. As known by the

Tegal people, the land contamination of Pesarean has been recognized for decades.

However, it seems that the mitigation policies had not been included explicitly in their

last five years program, although the RPJMD 2009-2014 has stated the vision to

develop environmental-friendly industry. In RPJMD 2015-2019, the environmental

problems are an ineffective clean water supply, particularly in rural areas; ineffective

waste management, and to optimize the control pollution because the hazardous

material and waste are still not tackled yet.

The location of the environmental pollution because of the B3 waste located in

the center of the metal industry in Pesarean village that already polluted by the heavy

metal pollution. There are several industries that contribute to this event. Smelter

industries, mainly melts tin and lead, that still using a traditional method by using the

furnace of manual fuel that has not been using chimney. Whereas, the actual smoke that

contains smoke can be recycled by taken back its metal content. In addition, because of


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the lack of attention to the smelting waste, there are many pile of smelting waste in the

yard, thus when it rains, it can dissolve into the ground. Battery recycling industry

gives a significant contribution to the existing situation. The waste of producing the

battery contains acid and heavy metal solution straight to the river nearby. As a result,

ground water in Pesarean area is not healthy anymore. For about 150 metal castings

business, there are only 12 environmental friendly businesses exist.

In regards to the Adiwerna sub-district where Pesarean located, the spatial

development plan has been directed to transform Adiwerna from urban-rural area to

become city together with Slawi and Kramat sub-district, with the target population by

2030 is around 150 thousand people. This urban development plan has been supported

by the planned Java-trans toll road, where the Pejagan-Pemalang section will across

Adiwerna area. The emerging economic activities such as small industries, trading,

services, and agriculture are the potentials that will influence the urbanizing Adiwerna.

In 2007, Adiwerna has accommodated 52 small industries, the highest of Tegal district.

Adiwerna is defined as the strategic area of Tegal district because it has been

being planned to be the first order of the urban system in Tegal district. Various basic

infrastructures (e.g. water, energy, and ICT), economic facilities (e.g. market, bank,

etc.) and social and civic services (e.g. health, education, etc.) will be the main policies

to develop this area. Integrating zoning plan of the big and medium industries and the

small industries would be the main strategy to optimize the strategic value of Adiwerna.

In the other hand, Adiwerna also being proposed as the special are for military interests.

Therefore, the synchronization between the industrial and urban development is the

main challenge for Adiwerna urban development.

In its spatial plan (RTRW 2009-2029), the government of Tegal district has

regulated the criteria of industrial location and the type of activities within the proposed

area for industry, including the environmental-friendly requirement. The location for

polluted industry has been set up to be located far from the human settlement. The land

allocation for industrial activities is preferably given to the small and medium and non-

polluted industry. However, the indicative zoning regulation for the specific recycling

industries is absent.

In term of environmental policy, there is no specific local regulation has been

made to enforce the mitigation of contaminated land because policy-making process

belongs to the central government. Through KLHK, central government endorsed the

Government regulation regarding the hazardous waste management (PP 101/2014). It

pertains the significant role of local government to recover the contaminated

environment. The scope of recovery program covers providing permit to hazardous

waste management, supervising the permit holder, monitoring and controlling the

activities, recovering the contaminated land, and sanctioning. Therefore, the function of

local government is to implement, monitor, and control the hazardous waste activities,

including both ULAB and non-ULAB smelters.

Environment

The burning process of ULAB smelters is no longer disturbing the community

of Pesarean since it has been relocated to PIK Kebasen. However, in certain cases, we

found that there is one in the north side of Kebasen, namely Desa Lawatan that still

experiences the lead smoke in the evening time. To date, this problem does not create

social conflict because the owner of PIK has provided logistic support to compensate

the smoky situation that they had. In Pesarean, the existed burning process comes from

the lead-contained metal. Even though it is only create indoor pollution, but to some

extents, it also has created problem between neighbors due to the smoke problem.


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Figure 15. Urban Redevelopment

In the context of hazardous waste contamination program, urban redevelopment

can be seen as a part of intervention to manage the environmental recovery.

Theoretically, the form of intervention can be an indirect intervention, e.g.

implementing land redistribution, opening new settlement and employment, and

expanding or diversification new employment out of the local area. These indirect

forms are not suitable to the situation that faced by Pesarean specifically and Tegal in

general. The direct intervention, e.g. alleviating and relocating polluted area or

improving and rehabilitating the polluted area is preferably suited to the Pesarean

situation. Therefore, urban redevelopment is also a form of direct intervention from the

government to overcome the contaminated land problem.

In 2009, the government of Tegal District actually has started by relocating the

polluters to the certain place, but has not been followed by the area rehabilitation. In

fact, the relocated area has also developed without strong control to the growing

industrial activities. Therefore, the presence of this study is imperative to strengthen the

local government policies and programs and to provide lesson learnt for the central

government in terms of providing proper intervention for contaminated land.

Based on environmental law (UU No. 23 year 2009), the environmental

pollution and/or damage shall be controlled in the framework of preserving

environmental functions (Article 54 (2) and Article 13 (1). Following that, the control

over the environmental pollution and/or damage shall cover: prevention, mitigation and

restoration. The central government, regional government and parties are responsible

for controlling business and/or activities in accordance with their respective scopes of

authority, role and responsibility. Therefore, the framework for recovering

environmental function should be the urban redevelopment program.

In order to implement the urban redevelopment framework, the urban spatial

planning law needs to be considered. In Indonesia, the technical guidance of urban

redevelopment refers to the regulation of Ministry of Public Work (PemenPU) Number

6 Year 2007 regarding the manual of urban design guideline. The urban redevelopment

is seen as a document to ensure the sustainable urban development that consists of

fulfilling the building codes, improving quality of life, environmental protection, and

increasing economic vitality. The urban redevelopment area can be mixed industrial

area with the area between 30-60 hectares. Therefore, according to this spatial planning

law, this project of urban redevelopment can contribute to the planning system of Tegal

regency as shown of figure 8 bellow.


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Figure 16. Urban redevelopment in planning system

Since urban redevelopment is a part of the government’s responsibilities,

therefore our strategy will focus on strengthening the Tegal government program with

creating stakeholders forum that consists of central government agencies, industrial

owner, banks, local communities, and donors. As shown in figure 9, we will focus on

the cooperation intra-government of Tegal to figure out the detail components of urban

redevelopment. We tried to optimize the local resources to fulfill the ultimate needs of

urban redevelopment. Following that, by identifying the “gap” or insufficient resources,

we embrace the relevant sub-national and national government, especially in the sectors

of industries, tourism, and infrastructures.

Beside of government of Tegal, we identified that the other stakeholders can be

categorized into 4 (four)

• Local government (Tegal District) consists of Environmental Management

Agency (BLH), Development Planning Agency (Bappeda), Sub-district of

Adiwerna (Kecamatan Adiwerna), Public Work Office (Dinas PU), Agriculture

Office (Dinas Pertanian, Perkebunan dan Kehutanan), Department of Tourism,

Art and Culture (Dinas Pariwisata), Department of Health (Dinas Kesehatan),

Community Empowerment Agency (Badan Pemberdayaan Masyarakat dan

Desa), and Industry and Trade Agency (Dinas Perindustrian).

• Government of Central Java Province consists of Environmental Management

Agency, and Center for Preservation of Culture Heritage.

• Central Government consists of Ministry of Environment and Forestry, Ministry

of Public Land and Housing, Board of Creative Industry, and Ministry of

Tourism.


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• Private sectors consist of Bank of Central Java, Private Enterprises, and Industrial

Owners.

• Local communities consist of Keraton Surakarta cq. Heir Amangkurat I, Kepala

Desa Pesarean, and Industrial Workers Association.

• Donors consist of ADB, US-AID, AUS-AID, UN Habitat, UNDP, Danida, etc.

Figure 17. Urban Redevelopment Stakeholder

4. Regulatory Assesment

In regard to the urban redevelopment program that will mitigate the lead

contamination, there are several regulations that need to be discussed in order to see the

possibility the form and way of urban redevelopment being conducted. Those

regulations are (i) RTRW (bahasa acronym for the general spatial plan of Tegal

district), (ii) RPJMD (bahasa acronym for the mid-term development plan), and (iii)

national regulations of environmental management that automatically prevails to the

local governments.

RTRW Kabupaten Tegal 2012-2032

The spatial plan of Kabupaten Tegal states that the main goal of 20-years plan is

to achieve the industrial-based district, which supported by the sustainable agriculture

and eco-tourism. The RTRW endorses seven spatial policies that consist of first, the


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development of small and household industries, including the medium- and large-scale

industry in the north and south side of Kabupaten Tegal; second, the development of

agropolitan in the south part and minapolitan in the north side; third, the tight

controlling the sustainable agriculture land; fourth is the development of urban services

supported by the integrated infrastructures; fifth is the development and establishment

of regional infrastructures system to serve the industrial activities and the production

center of agriculture; sixth is the establishment of protected and conservation area; and

seventh is the development of tourism area and national security interests. Those

policies are interacted among them and need the inter-sectoral cooperation to derive

those policies to the program level.

In term of small- and household industries, the strategies focus on first, how to

develop and empower those industries through the effective utilization of agriculture,

fisheries, forestry, and mining products; second, how to develop industrial center based

on the economic specialization (one village one product); and how to develop

promotion and distribution of the industrial products. In addition, the tourism sector

also provides the marketing space to support the products of these industries, beside of

tourism management and planning.

In term of urban services, the strategies focus on providing the detailed spatial

plan, optimizing the space of urban centre for informal sector and green open space,

developing community-based settlement, revitalizing local market, and providing clean

and clear land for housing development. Meanwhile, the land preservation for

sustainable farming, opening new paddy-field on potential area, and providing

incentives for the sustainable farming land are also being promoted to increase the

production of agriculture sectors. As shown in Figure 10, the location of urban center

(red nodes) is quite far from the corridor of Pesarean-Kebasen or ERIC zone (black

box). The development of urban center in Adiwerna will not affected by the metal

industries activities in ERIC zone in the short periods. However in the long-run, the

tight control through zoning regulation is needed to ensure the sustainability of the

urbanizing Adiwerna and Talang.


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30

The RTRW has regulated the criteria of location and the activities within the

proposed area for industry, including the environmental-friendly requirement. The

industrial policies emphasizes to the small and medium and non-polluted industry. One

of Tegal government’s plans is to develop zone for polluted industry far from the

human settlement. The zone is functioned to accommodate the ULAB smelters and

other metal industries from Pesarean. The location is only 1.8 kilometer to west side of

Pesarean, namely PIK Kebasen. The 6.8 ha-recycling industrial complex area is

predicted can support the growth of metal industries.

As stipulated in the spatial planning law (UU 26/2007), each district and city

government should provide the detailed spatial plan for urbanized area, strategic area,

and a part of district area. Unfortunately, until this report has been written, the detailed

spatial planning of Adiwerna and Talang is still being proceeded. But this situation has

also given us a great opportunity to provide inputs for the planning process as showed

in Figure 11.

Figure 19. Planning System of Tegal District

RPJMD 2015-2019

One of the issues in RPJMD 2015-2019 that related to the environmental

management is how to optimize the control system for hazardous materials and wastes.

This issue has strong correlation with the smelter industries in Pesarean and Kebasen.

Smelter industries, mainly melts tin and lead, that still using a traditional method by

using the furnace of manual fuel that has not been using chimney. Because of the lack


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31

of attention to the smelting waste, there are many piles of smelting waste in the yard. If

it rains, it can dissolve into the ground. As a result, ground water in Pesarean area is not

healthy anymore. Therefore, the mitigation of hazardous waste management in

Pesarean has been attached to the next five years of Tegal’s development plan.

There are at least two main missions that have also supported this mitigation

effort, which are “cinta produk Tegal” (Love domestic product) and “cinta budaya”

(love local culture and economy). The government of Tegal develops a set of regulation

to keep the momentum of growing metal industries because these businesses can lift up

the economy and the livelihood of Tegal people. The regulations consist of developing

a general framework for innovation, developing a knowledge and technology

institutional, developing a collaboration for innovation and to increase the diffuse of

innovation from the best practice, building an innovation culture, and applying the

information and communication technology.

Building an art and cultural base to empower the local economic is also a part of

Tegal government regulation. The development of art and culture sector has to give a

positive impact for the economic enhancement, especially for the business owner and

the crafter. The regulation for the art and cultural sector consist of forming a general

framework such as identification the economic potential of the art, composing the

regulation to support every businessmen, building a suitable infrastructure,

development of art gallery, build a training and learning center to support and enhance

the knowledge of Tegal people in art and culture, and the regulation to use their own

product.

These developments also elaborate the purpose and how they manage to create

opportunities for Tegal people such as forming the strategic document for development

Machinery Industry, incentive for every businessmen that use the green energy for

industry, regulation for Tegal people to use their own product, empowerment every

local stakeholders, building training and learning center, and utilization the information

and communication technology for every industrial owner. In a short way, Government

of Tegal plans to apply innovative technology to ensure the metal industries can last in

long run and in a sustainable way.

At the programming level, there are also several programs in various

departments that can support or complement the mission of urban redevelopment in

Pesarean. The components of the program may contribute to the achievement of their

development priorities as stated in their Rencana Pembangunan Jangka Menengah

Daerah (RPJMD) 2015-2019. Particular priorities that will be benefited by the project

are listed in the following table.

!

Table 3. Development priorities of Tegal District

No. Development Priorities Responsible Units Priority Components

1 Public health program Dinkes Healthy toilet program

Open defecation free program

Provision of clean drinking water

2 Healthy environment

program

Dinkes Healthy environment for

settlement

3 Drainage tunnel

development

DPU Well functioning village drainage

4 Improvement of drinking DPU Households access to clean water


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32

water and discharge

water management

5 Village infrastructure

development

DPU Good condition of village

infrastructure

6 Housing improvement DPU,

Bapermades

New housing development

Old housing rehabilitation

7 Healthy housing

environment program

DPU,

Bapermades,

Village

Households access to clean water

8 Cemetery area

management

Dinsosnakertrans Cemetery development

9 Pollution and

environmental

degradation control

BLH Controlling UKL-UPL

10 Pollution control

improvement

BLH Reduction of air polluted areas

Reduction of water polluted areas

11 Green open-space

management program

DPU, BLH Increasing ratio of green open-

space to urban areas

12 Supporting system

improvement for SMEs

Dinkop-UKM-

pasar

Increasing access of SMEs to

credit market

13 Revitalization of

koperasi

Dinkop-UKM-

pasar

Well performing koperasi

14 Cultural

heritage management

Disparbud Rehabilitation of cultural and

historical sites

15 Village economy

development

Bapermades Partnership between private

sector and village SMEs

16 Tourism marketing

development

Disparbud Increasing international tourist

visit

17 Tourism destination

development

Disparbud Tourism promotion

Increasing local tourist visit

18 Tourism partnership

development

Disparbud Tourism village (kampung

wisata)

Tourism advertising in the media

19 Street vendor

management program

Disperindag Street vendor capacity building

Managed street vendor areas

20 Technology capacity

improvement of

production system

Disperindag Improvement of small and

medium industries technology

capacity

21 Small and Medium

Industries Development

Disperindag Small and medium industries

partnership

22 Industrial structure

arrangement

Disperindag Support on industrial clusters

Source: Rencana Pembangunan Jangka Menengah (RPJM), Tegal, 2015 - 2019

The table 3 above shows that to some considerable degree there are overlapping

interests between the project components and development priorities of Tegal District.

Therefore, in general, the project could be deemed significance for the district. Those

project items thus can be used as an indicative corridor for detailing urban

redevelopment projects later.


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33

Environmental Regulation

In regards to the environmental regulation that has relation to the mitigation of

hazardous waste, the local government should follow the mandate of the national

regulation, such as:

• Environmental Law (UU 32/2009) has declared the sanction to the government

officers who give the permit and the business owner who operate improper and

unstandardized smelters activities as regulated by the law. The sanction of Law

No. 32 Year 2009 that related to ULABs activities as mentioning in the article

below:

1) Article 102

Anybody managing hazardous waste without the permit as a referred to in

article 59 paragraph (4) shall be subject to imprisonment for one year at

the minimum and 3 (three) years at the maximum and a fine of

Rp.1,000,000,000,- (one bilion rupiah) at the minimum and

Rp.3,000,000,000,- (three billion rupiah) at the maximum.

2) Article 103

Anybody producing hazardous waste and not executing the management

as referred to article 59 shall be subject to imprisonment for one year at

the minimum and 3 (three) years at the maximum and a fine of

Rp.1,000,000,000,- (one billion rupiah) ath the minimum and Rp.

3,000,000,000,- (three billion rupiah) at the maximum.

3) Article 104

Anybody dumping waste and/or materials into environmental media

without the permit as referred to in Article 60 shall be subject to

imprisonment for 3 (three) years at the maximum and a fine of

Rp.3,000,000,000,- (three billion rupiah) ath the maximum.

4) Article 111

(1) Official granting environmental permit that issue environmental

permit without amdal or UKL-UPL as referred to in Article 37 paragraph

(1) shall be subject to imprisonment for 3 (three) years at the maximum

and a fine of Rp. 3,000,000,000,- (three billion rupiah) at the maximum.

(2) Official granting business and/or activity license that issue business

and/or activity lincense without the environmental permit as referred to in

Article 40 paragraph (1) shall be subject to imprisonment for 3 (three)

yaers at the maximum and a fine of Rp.3,000,000,000,- (three billion

rupiah) ath the maximum.

5) Article 112

Every authorized official intentionally not supervising compliance of

parties in reponsible for business and/or activity with legislation and

environmental permit as referred to in Article 71 and Article 72, which

causes environmental pollution and/or damage that costs human live shall

be subject to imprisonment for one year at the maximum or a fine of

Rp.500,000,000,- (five hundred million rupiah) at the maximum.

6) Article 113

Anybody providing fake, misleading information, loosing information,

destroying information or providing untrue information which is needed

in relations to supervision and law enforcement with respects to

environmental protection and environment as referred to in Article 69


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34

paragraph (1) letter j shall be subject to imprisonment for one year at the

maximum and a fine of Rp.1,000,000,000,- (one billion rupiah) at the

maximum.

Pasarean was contaminated by lead and other heavy metals , base on Law n0.32

year 2009 54 :

1) Everybody pollution and/or damaging the environment shall be abliged to

recover the environmental functions.

2) The recovery of the environmental function as referred to in paragraph (1)

shall be done by the following phases:

a. Discontinuation of source of pollution and cleaning of pollutants;

b. Remediation;

c. Rehabilitation;

d. Restoration; and/or

e. Other measure in accordance with scientific and technological

developments.

3) Further provision on procedures for the recovery of the environmental

functions as referred to in paragraph (2) shall be regulated in a

government regulation.

• There is no local government that takes a tax or retribution to those smelters

activities both Pesarean and PIK Kebasen.

• National Government Regulation (PP 27 / 2012) regarding Environmental Permit

that mentions the importance of Environmental Impact Assessment (EIA) to have

environmental permit. The Environmental Permit is a permit that given to every

person who does a business activity and requires the environmental impact

assessment in order to protect and manage the environment as a prerequisite to

gain the business permit. Every business activity requires the environmental

impact assessment that covers composing the assessment, appraisal and

examination the assessment, and petition for publishing an Environmental Permit.

In Tegal context, the Government of Tegal through BLHD has already facilitated

the EIA process of PIK Kebasen. In the EIA report of PIK Kebasen, the smelters

activities can be operated if they follow the site plan pattern that has been

formulated, provide adequate infrastructures for environmental protection, and

report the air monitoring in periodically. However, in practices there are still

many insufficiency of how PIK Kebasen operates. For example, the building

pattern does not follow the site plan recommendation in EIA document. The lack

of environmental infrastructures and the improper way of monitoring the air

quality are also the absences of environmental regulation in Tegal.

• According to PP 101 Year 2014 regarding Hazardous and Toxic Waste

Management states that the hazardous and toxic waste material (B3) is a

substance, energy and/or another form of components in which of its behavior,

concentration, and/or the total in direct or indirect, can pollute and/or damage the

environment, and/or endanger the environment, health, and the viability of human

and other living things. Managing the B3 waste is an activity to reduce, store,

collect, transport, utilization, recycle, and/or hoarding. Every business activity

that produces the B3 waste requires to store, collect and urge to reduce the waste.

The business party also needs to convey a report to the Minister regarding the

preventing action if necessary. The report needs to be renewal every six months.

Prevention of the hazardous and toxic waste consists the identification the level

of emergency regarding the waste, preventing the pollution and/or damage by


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35

evacuated the necessary resources, utilizing environmental management tool,

identify the damaged area, and forming a report to elaborate the potential of the

polluting area and/or damaging area to Minister, Governor, and Bupati.

Collapsing the source of the pollution requires and attention to minimalize the

impact to environment, such as discontinuation the activity regarding producing

and dumping the waste, and composing a report to the higher authority. Higher

authority, such as Minister, Governor, and Bupati has the right to charge every

business owner to prevent the contamination. The charges consist fine and

prevent the contaminating and/or damaging the environment, and recover the

function of the environment. In every activity regarding the preventing

contamination of the B3 waste requires to prioritize the human safety, and every

action requires a written report to the higher authority.

Therefore, even the government of Tegal district has no local regulation

regarding the issue of mitigation of hazardous waste, by law Bupati must implement the

national regulations above to ensure the mitigation process of lead-contaminated area

can be proceeded properly.

5. Initial Environmental Assessment

ULAB recycling in Tegal Regency previously conducted with metal smelting

industry in Pesarean Village, Adiwerna Sub-District. Pesarean is known as a metal

smelting industry that has been existed for hundreds years and has been re-generated

for many generations as their predecessors’ legacy. Metal smelting industry among

others includes tin, aluminum, brass and copper. The KLHK estimates that there are

about 300 household industries in Pesarean before they were gradually transferred to

Small Industry Village (PIK) of Kebasen since 2009.

Photo 2. Peta Kabupaten Tegal dengan highlight Desa Pesarean

Due to lack of understanding about hazardous substance and hazardous waste, the

industrial activities in Pesarean Village complied neither with the environmental

standards nor occupational health and safety (K3) regulations. Smelting activities

carried out by the open burning system, while the waste were piled by the open

dumping system. Our field surveys during March-June 2015 confirmed that there are

still many metal smelters practice without considering the health and environmental

factors. Even though, the smelters are only taking the metal material, no longer ULAB

and the number is only about 40 households.

Photo 3. Peleburan logam sebelum relokasi

Due to a concern from the presence of metal smelting industry in Pesarean

Village, then several studies were conducted to determine the scope of pollution in the

environment and public health. In his statement on November 23, 2011, the Head of

Industry of Tegal Regency mentioned that the environmental pollution in the metal

industry has shown high levels in several parameters. Dust reported in 5429.969 µg /

m3, which means almost 24 (twenty four) times higher than the threshold, i.e. 230 µg /


Tegal Indonesia

36

m3. Levels of lead (Pb) reportedly reached 128 672 µg / m

3, while in a location that no

content production process lead (Pb) of its 2,317 µg / m3.

In 2011, KLHK appointed a research team from Padjadjaran University to

conduct geology and hydrogeology studies in Pesarean Village, and they reported that

the volume of waste dumps reached 16,200 m3. In addition, there are three (3) of the

metal element composition of the waste that has polluted groundwater, namely copper

(Cu), zinc (Zn) and lead (Pb, local only). An estimated area of contaminated

groundwater spread of the copper element reaches + 43903.93 m2 and + 55885.33 m

2 of

the zinc element with a depth of about 3 meters.

Figure 20. Hasil studi Universitas Padjajaran

In December 2014 and January to May 2015, Blacksmith and KPBB measured

Pb concentration in soil in 82 (eighty two) points in Pesarean Village by using XRF, in

which the measurement results indicate the lowest concentration point at 0 ppm and

highest at 398.000 ppm. 50% of the total 82 points are above 400 ppm (WHO

recommended safe level for Pb concentration in soil).

The above results of the study showed that the activities of metal and ULAB

recycling have polluted the environment. Even when the activities had been relocated

to the new area, heavy metal contamination of soil may pose risks and hazards to

humans and the ecosystem through direct ingestion or contact with contaminated soil,

the food chain and drinking of contaminated ground water [Raymond A. Wuana and

Felix E. Okieimen, “Heavy Metals in Contaminated Soils: A Review of Sources,

Chemistry, Risks and Best Strategies for Remediation”]. Therefore, it needs immediate

intervention, including remediation of contaminated land and proper planning on how

the land will be revitalized upon the remediation.

In …. 2015, we also investigated the lead containment through several cases.

In June 2015, BTKL Yogyakarta also did environmental assessment (soil,

surface water, ground water, and plants).

6. Initial Health Assessment (Pak Budi)

The potential for risk to human health seems obvious when high concentrations

and large amounts of heavy metals are found in the environment. However, the simple

presence of heavy metals in the environment does not necessarily result in risks to

human health. Risks to human health only occur if there are exposures to the heavy

metals of concern. Exposure occurs when heavy metals are eaten (ingested), breathed

(inhaled) or absorbed through the skin.

The health condition of Pesarean people is continuously being monitored. In the

periods of 2008-2009, KLHK studied that several diseases that related to the lead

contamination found in Pesarean, such as asthma 137 people, skin allergic: 74 people,

respiratory infection: 363 people, conjunctivitis: 140 org, 5 down syndrome children

(KLHK, 2014). In 2011, Environmental Agency of Central Java province (BLH

Provinsi Jawa Tengah) also found that 46 of 50 respondents are above the average

(blood sample).


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37

In 2012, the KLHK in collaboration with the Health Team of Mer-C provided a

report of the results of the evaluation of the health status of communities around the

small industrial of Pesarean Village. The result showed that 88% of the total 400

respondents detectable levels of lead (Pb) in blood above 10 µg / dL, and 39% of that

amount above 30 µg / dL. Some of the symptoms that correspond to the symptoms of

lead (Pb) poisoning acute found in a number of respondents, including constipation

(9%), white vomiting (4%), and black stools (3%). While the symptoms of chronic lead

(Pb) poisoning found wrist drop as much as 1.8% and 3.3% foot drop. It also carried

out checks on 1 (one) family who had engaged in recycling of used batteries hereditary

(> 30 years) and found:

• Neurological disorders such as muscle weakness in the legs and hands on nearly

all respondents;

• Levels of lead (Pb) in the blood of almost all showed > 30 µg / dL; and

• Mental retardation.

Photo 4. Studi kesehatan Mer-C

Based on the previous studies above, this initial health assessment aims to

evaluate health effects of Pesarean’s residents. The methods used in this study

involving evaluating health effects reported by Tegal District Health Office from year

2003 to 2013, visiting site and observing physical symptoms to selected population,

conducting focus group discussion to metals’ smelter owner and workers and a group

of 35 housewives, retaking and measuring Blood Lead Levels (BLLs) of 46 samples

from cohort population in 2011, and analyzing the BLLs different in 2011 and 2015.

Visiting site and observing the physical symptoms: we begin by attending meeting

with local environmental office and local government of Tegal District. The local

government had shared situation analysis of metals’ smelter activities, business and its

health impacts. Following up the meeting, inventory of data related health impacts, which

is suspected having an association with the exposure of metals’ smelters, was carried out by

directly visited district health office, local bureau of statistics office, office of population

and family planning, and local environmental office. Most of the time was spent at the

metals’ smelters and surrounding neighborhood by observing the owners and their families,

workers, and neighborhood population on their physical symptoms and or diseases related

to metals and lead toxicities.

Evaluating health effects: we begin by reviewing available information about general

prevalence and incidence of diseases reported by Puskesmas and District Health Office.

The report includes yearly diseases occurrence from 2003 to 2013. The first task is to find

out how much the disease-related to metals or lead exposure is present and to determine

whether that exposure could be harmful to human health.

Focus group discussion: we conducted FGD in two groups of population, one group

of male consists of 30 owners and or workers of the metals’ smelters and another group of

female consists of 35 housewives of owners, workers, or surrounding neighbors of the

metals’ smelters. The issues for discussion were the participants’ knowledge on the hazards

of metals’ smelter processing, common diseases’ occurrences, symptoms and severe

disease among the families and neighborhoods, as well as cause of death occurrence.

Retaking and measuring BLLs: we begin by selecting purposively 46 persons from

2011 BLLs data provided by Mer-C and MOE report. We retook their vein blood samples

and analyzed by using Leadcare Analyzer II on site. Further analysis was conducted to find

out the current status of lead toxicity among local population.


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Based on our visiting site and observing the physical symptoms, we found that some

diseases and symptoms related to lead chronic poisoning among several owners, their

family and workers of metals’ smelters. Having read the series of health reports, the cases

of infectious disease is dominant overtime. However, some of diseases related to the

impact of heavy metals (included lead) chronic poisoning were also found in the small

number. In the FGD, it was found that many of children are having difficulty to get

high score in their schools; stunting or problem in physical development was also

common cases among children in the area of study; and mental retarded and paralysis

occurrence was also reported among several families.

The blood lead-level (BLL) sample test had been carried out among Pesarean

village community by initiative of the local government, provincial government, central

government, environmental NGOs and research center of university since 2011 till

2015. The result of the BLLs’ tests is as the followings:

Table 4. The BLL’s sample test (tambahkan std.deviasi dan asumsi yang

diambil+sampling method, serta gambaran responden-nya)

Year # of

Samples

Assessor institution BLLs

Min Max Mean % above 30

µg/dL

2011

50

Local Government

of Tegal District

92.0

2011 365 Mer-C and MOE 0.0 88.4 9.0 8.8

2015 46 Blacksmith Institute 0.2 >65.0 39.3 60.9

The assessment conducted by Tegal’s local government in 2011 and Blacksmith

institute in 2015 involving only adult purposive sampled population, those who work at

metal’s smelters and surrounding neighborhoods. The wider and more heterogeneity

sampled population assessed by Mer-C and MOE in 2011, involving 400 children and

adults (365 with completed data) randomly selected. The data revealed that those adults

working and living at surrounding metal’s smelters are having very high risk to lead

exposure over time. This result indicates that the exposure of lead is still continuously

occurring in Pesarean village. The metal’s smelters are the only possible sources for the

exposure.

The possible effects to human health from lead exposure among 2011 and 2015

respondents (44 cohort persons) are as the followings:

Table 5. Comparing BLL’s 2011 and 2015

BLLs

(µg/dL)

2011

Assessment

(MerC &

MOE) %

2015

Assessment

(Blacksmith)

%

Health Effect/s

< 15

20.5

2.2

No health effect

15 – 24 18.2 23.9 Increased function of erythrocyte


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39

protoporphyrin among men and

women

25 – 34 36.4 19.6 Elevated blood pressure

35 – 44 9.1 13.0 Decreased function nerve conduction

velocity

45 – 54 13.6 19.6 Decreased function hemoglobin

synthesis and female reproductive

effects, male reproductive effects

55 > 2.3 21.7 Frank anemia

Cohort 2011 & 2015 samples’ descriptive comparison

Descriptive

2011

2015

p-value

Minimum

0.8 µg/dL

13.8 µg/dL

Maximum 88.4 µg/dL >65.0 µg/dL

Mean 27.9 µg/dL >39.3 µg/dL 0.742

BLLs’ test was recognized as the fastest and reliable test in describing toxicity

of lead in human body by current environmental lead exposure. The findings show the

exact occurrence of lead exposure in the environment. Since the only source of

exposure in the area of study is metals’ smelters, it is more likely that the metals’

smelter contains of enough number of lead materials.

As the mean of BLLs found higher in the cohort population of 2015 (>39.3

µg/dL) than in 2011 (27.9 µg/dL) with no statistically different, it indicated that

exposure of environmental lead occurred over time and predicted will continue in the

near future if no action for prevention and control conducted.

7. Initial Economic Assessment

Livelihood Assessment

Agriculture has affected the life of Tegal District community, both

economically and cultural socially. Based on the big potential they have, Tegal District

government has determined that agriculture sector is one of the core business and

leading sector besides manufacturing industry and tourism, as well as a mainstay in

economic field development. Based on the data from RPJMD Tegal District 2014 –

2019 that the job field in agriculture is the dominant job field in 2009 – 2013. However,

the number of people working in that sector has declined in the same period of time.

Different condition applies in tourism sector which includes trading, restaurant, and

hotel. The workers working in those sectors were the second biggest sector in Tegal

District in 2009, but then there was an increase and became the sector which absorb the

biggest employment in 2013. Business field data in Tegal District from year to year can

be seen in the table 4.


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41

the producers and traders of various metal handicraft. The number of people working in

those sectors is as many as 3836 people or around 31% of the total number of Pesarean

village people. The composition of livelihood of Pesarean village people can be seen in

figure 21.

Figure 22. Pesarean Village Livelihood

Source: Village Monographic and Consultant Analysis

Work activity of smelting especially used battery (ULAB) currently has been

reallocated to PIK (Perkampungan Industri Kecil/ small industry village) located in

Kebasen village. However, the PIK area can only accommodate around 40 – 50

businesses. There are 4 (four) Used Battery Smelter currently doing their business

activity in PIK.

Figure 23. Distribution of Smelter and Craftsmen in Pesarean Village (outside PIK)

Smelter Business Cycle and Supply Chain

Smelting businesses, both used battery smelting and metal smelting are business

groups that make use of used goods as raw materials. On one side, that business is a

part of the government program concerning waste management in accordance with

Regulation Number 18 year 2008 on Waste Management, which is reduce, reuse and

recycle (3R). However, on the other hand, when that business is committed illegally

and not environment friendly, it will cause new problem in environment management.

Business network of used battery smelting starts from used goods collecting from the

consumers, in this case the community. For used battery smelting, starts from collecting

used battery from battery consumers, individuals or companies. Collecting used battery

from the consumers usually consists of 3 mechanisms which are through pickers who

buy used battery from the consumers, through battery dealers, and through companies

that are battery consumers. The result of collecting then brought to smelter in PIK. The

outcomes from ULAB smelter will produce lead ingot as main product, which then sold

to metal casting factories to be made certain products or Lead Acid Battery

Manufacture. The complete ULAB supply chain can be seen in figure 23.


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44

Figure 27. Land Use of Tegal Residence

Source (Tegal Spatial Planning 2012 – 2032)

However, in reality, the most wanted job field of the people especially in

Pesarean Village is trading especially junk things. The metal-based business activity

has been passed on for generations and has been flesh and blood in the community of

Pesarean village. There are about 30, 83% of 12.444 Pasarean people who work in

trading sector including pickers and 60 people among them are iron smelters. Based on

the result of questioner distribution and interviews of 35 people working in smelting

business, only 3 respondents (9%) who want to have another kind of business, such as

restaurants, daily consumption needs trading, and grocery shops. Nevertheless, they

find it difficult to start it due to lack of capital and business habit that has been passed

on from generations.

Alternative of another business that can be developed by the community of

Pesarean village is actually tourism business especially culinary and souvenir. As part

of Pantura area and is passed from Jakarta and West Java to East Java and vice versa,

Tegal as well as Pesarean can be made as transit area for domestic tourists. Related to


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45

culinary tourism that has been typical of Tegal people is satay, lamb and “blengong” (a

kind of poultry from the breeding of duck with Manuila duck) satay. In addition to it, is

Poci tea also typical of Tegal and cannot be separated from Tegal people. As for

souvenir, in line with the people’s current habit, metal smelting and molding, various

kinds of metal handicrafts can then be developed.

In line with the community business habit that has been passed on from

generations and the majority of people has been familiar with the collecting of used

things up to their process, then Pesarean village has the potential to be the center of

recycle not only for central Java scale but also for the entire Java island. However,

recycle material is not only metal-based but also other based materials such as plastic,

paper, rubber, and others. But then, in developing manufacturing industry by making

use of those waste/garbage, it should be done in environment friendly manner by

following the existing regulations.

Economic Prospectus of Meal Recycling Business

Tegal District in the 70s was called as the Indonesian Japan. That name was

given because Tegal was a qualified metal molding product producer, even the

motorcycle famous brand spare parts including the Japanese motorcycles and the hose

joint of fire fighter were originally made by the people of Tegal. Metal molding

products that are produced are aluminum, brass, copper, and iron. Hundreds of metal

molding product producers existing in Tegal have been well-known for their National

standardized products with low price. Tegal’s claim as ‘the Indonesian Japan’ might

only be a local claim that is only known by Tegal people themselves or people in

around Pekalongan Residency. Even so, this claim is not without reason. Imagine,

Processing Industry contributes 25.81% of the Pendapatan Domestik Regional Bruto

(PDRB), Gross Regional Domestic Income, of Tegal District, It is on the second rank

after Trading, Hotel, and Restaurant (28.64 percent). Not less than 24 kinds of metal

industry can be produced by Tegal craftsmen like motorcycle component and spare part

industry, Heavy equipment, Automotive, Ship and Marine, Electricity, Health, Wind

Gun, Accessories, Workshop, Agriculture, Farming, Building material, Households,

Car Body, Fire Fighter, until Water pump equipment.

Looking at the history and business done by the community of Tegal, especially

Pesarean, the metal-based business is a prospective business. From the availability of

raw material side, which is junk iron, the supply of that material is sufficient, both from

household and industries, as well as from building construction. From the production

cost side, the used iron recycle business activity can be more efficient because the price

of the raw material is relatively cheaper than processing the expensive iron ore. For

that, production result using used metal can offer much cheaper price but with good

quality.

Sustainable prospective business economically begins with used metal

collecting, not only from Tegal and its neighboring area but also from DKI Jakarta,

Bandung, Cirebon and Surabaya. There are no quantity data that describe the potential

of the raw material, however, based on the current data, there are about 3000 business

actors running in informal sector to collect the used metal.

Second prospect is the metal smelting activity, like iron, aluminum, copper, and

brass. Based on the survey result from 4 (four) smelting business actors, the business

investment value is approximately IDR 98,105,000 with average profit of IDR

47,303,750 per month. To know the feasibility and sustainability of that business


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46

financially, it can be seen from the IRR (internal rate of return) value of that business.

By using the financial data from the 4 business actors, the average IRR value is very

fantastic which is 579%.

Table 7. Metal Smelting Business Profit

Respon

dent

Investment

(IDR) Operational Cost (IDR/month) Selling

(IDR/month)

Profit

(IDR/month) Material Cost Salary Other Cost Total

1 21,710,000 206,000,000 8,000,000 3,000,000 217,000,000 269,100,000

52,100,000

2 25,710,000 66,100,000 6,720,000 3,000,000 75,820,000 101,000,000

25,180,000

3 52,000,000 39,340,000 3,625,000 1,400,000 44,365,000 55,000,000

10,635,000

4 293,000,000 225,200,000 6,500,000 - 231,700,000 333,000,000

101,300,000

Total 392,420,000 536,640,000 24,845,000 7,400,000 568,885,000 I 758,100,000

189,215,000

Average 98,105,000 134,160,000 6,211,250 1,850,000 142,221,250 189,525,000 47,303,750

While for business actors of metal handicraft makers, from the 7 business actors that

were surveyed, gained average investment value of IDR 143,388,571 with average

profit of around IDR 30,371,428 per month or around IDR 364,457,143 per year. Based

on the data the IRR value of metal craftsmen business is approximately 254%, a quite

fantastic business seen financially.

Environmental Cost and Benefit Analysis

ULAB smelter business has given positive impact to the local economy of

Pesarean and Kebasen community. Base on our survey there are four ULAB smelter

located of PIK Kebasen and one of them is not routinely of it business. Economic

potential which can generated from the business is about IDR 329,065,000 per month

or 3,948,780,000 per year, with the minimum income is about IDR 30,440,000 per

owner per month or IDR 365,280,000 per owner per year and the highest income is

about IDR 258,625,000 per owner per month or 480,000,000 per owner per year.

However that the income not include external cost. One of the major types of external

cost is the cost inflicted on people through environmental degradation (Field, 1997)3.

ULAB smelter business in other side will surely have negative impact for the

environment and also health as external cost. To minimize of the impact, smelter business of

PIK Kebasen location must be developed with the environmental friendly principles. If we use

PT Karabha Wiratama (KW) as a benchmarking of smelter business which

environmental standard and with assumption that the capacity of PIK Kebasen ULAB

smelter is half of KW capacity, we need investment is about 3,5 billion with the

operational cost is about 3 billion per year. If we assumption that the inflation rate 2%

per year and technical life of the business investment is 5 years then NPV (net present

value) is only IDR 512,975,262 with IRR (internal rate of return) is about -49% and

3

Field, Barry C. 1997: Environmental Economics. Departement of Resource

Economics University of Massachusetts-Amherst, The McGraw-hill Companies, inc.


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47

benefit cost ratio (BCR) is only 0,15. Base on criteria if BCR < 1 then the business not

financially feasible. As a completely of this calculation we can see of Table …

The calculation does not include the cost of risk both environmental and health

risks as external cost. One of the environmental problems of the ULAB smelter

business is residual which resulted of the process. One option to solve the problem is

the cleaning up program. Based on Cinangka’s case study, the cost of environment

recovery needed to solve environmental problem caused by the smelting business is

IDR 5 billion for 2,700 m3. This method is quite good in minimizing the cost of

cleaning up program. The other way is by choosing the same area where the lead

contamination land took place as the location for cleaning up program. Using the recent

survey’s result from the KLHK and Unpad regarding the volume of lead contaminated

area in Pesarean is 16,200 m3, thus total cost needed to do the cleaning up is around

IDR 20 billion.

Table 8. BCR Analysis of ULAB Smelter Business

Year 0 1 2 3 4 5

Investment/

depreciation*)

3,500,000,000

700,000,000

700,000,000

700,000,000

700,000,000

700,000,000

Operational cost*)

3,000,000,000

3,060,000,000

3,120,000,000

3,180,000,000

3,240,000,000

Total cost

3,700,000,000

3,760,000,000

3,820,000,000

3,880,000,000

3,940,000,000

Benefit/Profit**)

3,948,780,000

3,948,780,000

3,948,780,000

3,948,780,000

3,948,780,000

Cash flow

(3,500,000,000)

248,780,000

188,780,000

128,780,000

68,780,000

8,780,000

NPV***)

cash flow 512,975,262

IRR -49%

BCR 0.15! *)

Benchmarking with PT Karabha Wisatama with assumption of half capacity **)

Base on survey and consultant analysis ***)

Discount rate 12%!!!!!!!!!!!

As we know that besides ULAB smelter business located in PIK Kebasen, there

are many metal smelter and molding craft business which still operation in Pesarean

Village. That business surely has given positive impact to the local community

economy. As stated earlier that for smelting business activity, the average profit gained

by every business doer is about IDR 47,303,750 per month. If the number of smelters in

Pesarean village is as many as 16 businessmen, the economic value generated from that

business is estimated around IDR 756,860,000 per month or around 9 billion per year.

While for the metal craftsmen business activity, the average profit of every craftsman is

IDR 30,371,429 per month. So, if there are 30 craftsmen, the economic value that can

be generated is about IDR 911,142,857 or around 10, 9 billion per year. Thus, the

economic value that can be generated from the metal smelting business activity located

in Pesarean village is about 20 billion per year. However, as well ULAB smelter that

the income not included external cost. Even more that the business still operated in the

settlement area of Pesarean Village.

If metal smelter business not moved to the PIK Kebasen, cost which needed for

the business and environment and healthy risk are very high. Every owner of metal


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48

smelter must have dust collector, sludge treatment and water treatment plant. Moreover

every owner must be provide external cost, including :

a. Healthy cost for community.

b. Opportunity cost: something consists of the maximum vaue of other outputs

we could and would have produced had we not used the resources to

produce the item in question (Field, 1997). For this case included loss of

agriculture land, loss of domestic tourism opportunities to visit of Pesarean

surrounding, etc.

c. Cost for cleaning up.

d. Cost for water supply.

In this case, metal smelter business must developed with the socially efficient. If

rates of output are to be socially efficient, decisions about resource use must take into

account both types of cost – the private costs of producing (of metal smelter) plus

whatever external costs arise from adverse environmental impact. In terms of full social

cost accounting (Field, 1997):

Social cost = Private cost + External (Environmental) costs

If metal smelter business not moved to the PIK Kebasen area, social cost will be

increased year by year.

One of possible solution as part of urban redevelopment project, metal smelter

business which still operated in Pesarean Village must be removed to the PIK Kebasen.

To minimize environmental impact of the industry, metal smelter in PIK Kebasen must

be developed which environmental friendly principles. If assumption that for ideal

metal smelter is same with ULAB smelter and assumption that the PT KW as a

benchmarking industry for it case, the calculation economic feasible and BCR for half

capacity production can we see of the Table …...

Table 9. BCR Analysis of Metal Smelter Business

Year 0 1 2 3 4 5

Cost :

investment/

depreciation

3,500,000,000

700,000,000

700,000,000

700,000,000

700,000,000

700,000,000

Operational cost

3,000,000,000

3,060,000,000

3,120,000,000

3,180,000,000

3,240,000,000

Total cost

3,700,000,000

3,760,000,000

3,820,000,000

3,880,000,000

3,940,000,000

Benefit/profit:

Smelter

2,270,580,000

2,270,580,000

2,270,580,000

2,270,580,000

2,270,580,000

Crafter

2,551,200,000

2,551,200,000

2,551,200,000

2,551,200,000

2,551,200,000

Total benefit

4,821,780,000

4,821,780,000

4,821,780,000

4,821,780,000

4,821,780,000

Cash flow

(3,500,000,000)

1,121,780,000

1,061,780,000

1,001,780,000

941,780,000

881,780,000

IRR 14%


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49

NPV cash flow

3,659,944,886

BCR 1.045698539

The result of financial analysis we can see that IRR value if metal smelter we

moved to the PIK Kebasen is 14%, NPV = IDR 3,659,944,886, and BCR = 1.04. Base

on feasibility of financial criteria can be concluded that the business financially

feasible. Whatever the calculation not included external cost because as ULAB smelter,

the metal smelter can give impact to the environment and healthy. But if metal smelter

business moved to the PIK area environmental impact can be more manageable and

external cost will tend to decrease year by year.

8. Initial Assessment of Capacity of Pesarean Community

The capacity assessment on Pesarean community can be divided into three

sections, first is to know how Pesarean’s people perceive the smelters activities, second

is to explore some neglected potentials in Pesarean, third is to analyze the gap of

capacity, and fourth is to identify the key focus of capacity development.

People Knowledge and Awareness on Lead Exposure

To assess people knowledge on lead exposure, the project conducted survey on

people perception toward their environment. For survey purpose, the project took 500

respondents by using random sampling method refers to their education level, gender,

and the age. With regard to the level education, the most respondents are senior high

school (40%), followed by junior high school (27%), vacation high school (16%),

elementary school (16%) and university (1%).


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50

Figure 28. Population by sex, age, and education

Regarding to the gender, male is the most respondent with 53% meanwhile for

female is 47%. The age of respondents, the mostly are the respondents with 31-40

years old (30%), followed by 26-30 years old (23%), 41-50 years old (20%), 20-25

years old (20%), 51-60 years old (9%) and more than 60 years old (5%). People hear

and understand toward lead exposure in their environment, such in house (indoor, out-

door), street, smelter, paddy field, soccer field, cemetery, etc. (65%), with remaining of

them (34%) did not hear or understand and (1%) give no feedback. 40% respondents

stated that they know and understand that lead is harmful for human health as danger,

poisoning, and suffer the illness or dieses. Meanwhile, 25% give feedback as suffer

illness/dieses, 20% as poisoning, and 15% as danger.

The smelter availability

Toward smelter availability, respondents stated that any smelter in their

surrounding areas (79%), and 13% stated not available with explanation that they did

not know what is the smelter because as long as they stay at Pesarean they did not

know if any ULAB recycling and they just thinking what they have found in Pesarean

is crafting industry.

60% respondents give feedback that they have lead or used battery in their house, and

32% have no lead or used battery, and 8% did not give the feedback.

Regarding to the smelter ownership, just 13% they stated that they have smelter,

meanwhile 73% did not stated that they have it, and remaining of 14% did not give the

feedback.


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51

Continuous question for the smelter owners, we found the fact that 81% of

them (smelter owner) want to end lead poisoning in their environment with reason they

want to stop to disturb another people from their smelter emissions. They stated that

they need the technology support, and of course financial scheme credit, beside the

technical assistance from the government and or another institution that are willing to

help them. They also would like to look at to the situation, if their community and their

suppliers/buyers (read: godfather) will do for the better smelter technology for

environment, they will follow. They concern to the incremental cost that must be added

to the direct production cost when they will have adopted environmental friendly

smelter. Another smelter owners does not willing to stop lead poisoning in the

environment (19%), they stated that they have problem on financing and technology,

beside their concern on profit margin reduction when they will adopt the clean

technology.

Therefore, we conclude that most of people in Pesarean village hear and

understand toward lead, used lead acid battery, and lead smelter, with its effect to the

human health. They understand that keeping the lead and using lead acid battery at

home is danger, poisoning, and have potential to suffer them with illness or dieses.

Most lead smelter owners willing to adopt environmental friendly technology/methods

with consideration to the transfer of technology (free of charge technical assistance),

financial scheme (credit), and allowed by their supplier/buyer.

Regarding institutional set-up, Patron-client, a dependency relationship between

smelter/metal crafting owners, and their supplier/buyers is shown as strong relationship

with bonded debt effect for the smelter/metal crafting owners. Etic and social

institution almost faded, the people are more pragmatism-opportunistic for materialistic

oriented (money, project). Local institution prefers to serve for the production unit

under entrepreneur, rather than to protect the people and preserve the good and healthy

environment.

In regards to the social-economic condition, part of the people is indicated have

below standard of life. Used Lead Acid Battery and lead slag are free sold and

distributed illegally. Metal and scraped metal smelters are economic center could be

interested for multi part (government, community, police, etc.). The patron-client

dependency is the most problem to adopt environmental friendly smelter. There is no

assistance program to implement environmental friendly smelter, whatever central and

or local government. Against the law is usually happening in the process of smelter and

crafting in Tegal District.


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The potentials of Pesarean community

Naturally, the people in Pesarean village have strong character to preserve and

take care for themselves and their family. Their capacity on metal smelting, and

molding which are done in the long time since 17th

century4, gives the people as social

capital to their livelihood in the modern industrial. Today, another specialty on plastic

and rubber molding give the extra-occupation.

Since, the increasing of industrial era, especially on the automotive and

electricity field, the occupation and livelihood in Pesarean also follow the trend. In the

past, the smelting, and molding industry were started by producing defense equipment

–spear, sword, kris, cannon, musket--, housewares5, today extend to another field on

providing spare part and raw material for electricity, automotive, and construction.

Learning process with follow their seniors is the most effective transfer of knowledge

and transfer of technology in relation to produce raw material and or end product to

supply the next chain of industry or to the consumer. They have enough

standardization on producing raw material and end product, even though they have not

enough training or formal education. They have capacity to produce raw material and

end product that fulfill the high level standard that is needed by modern industry. The

problem is leak on environmental friendly process of their production. Their process

affected to the environment, and their health.

Heritage of Amangkurat Cemetery is potential tourism destination, but it is look

like latent gold that is needed to be raised by creating technical aspect, such as creative

industry, and non- technical aspect such as to develop the scenario as one package of

heritage tourism destination e.g. religious tourism, historical tourism; reform the land

use and restoration the heritage cemetery, capacity building for the people and

government official, etc.

The mutual cooperation –gotong royong-- is a potential to be raised up in the

future, even though today the most people busy with their own business. Reclaiming

on the mutual cooperation as their old asset is needed to raise this social capital.

Another social capital is local wisdom on all aspects of life that was developed by

ancestor, and documented as guideline on housing, farming and agriculture, industry,

trading, social relationship, etc. The local wisdom needs to be raised and delivered to

leapfrog from the underdeveloped life to modern welfare life.

Life style with stereo type as not confidence, apathetic, underdeveloped, low

self-esteem encourages them to poverty, poor sanitation, unstandardized housing, and

habitat, and unhealthy life style, and live below the poverty threshold are the people

characteristic in Pesarean Village6.

The people life is depend on the patron is shown in the daily activities7. In the

smelter or molding owner for instance, women are depended on men who control all of

family revenues. Women have not authority to decide the family revenue even just to

improve family welfare. The men who control the revenue use it with no responsibility,

and not transparence. At the outside of family, the man is depended to their patron

who is the trader on both of supplier of raw materials, and buyer for the products that

4 Babat Tanah Jawi

5 Analysis reports refer to the discussion with elders in Pesarean village and Tegal

District, March 2015. 6 PAR-Participatory Action Research, 12 February – 23 March 2015.

7 PAR-Participatory Action Research, 12 February – 23 March 2015.


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53

are resulted by the people. In the smelting case, the patron provide the raw material

such as used battery, lead slag, iron scrap, cooper slag, zinc scrap, tin, etc. and in

another side the patron buys their result of smelter with debt bondage methods. The

patron plays the role without gives chance the client to make bargain. The patron uses

the position to repress the client for long term with potential inter-generation. The

clients are look like as successful entrepreneur, but in the fact they just serve their

patron, and refer to the time goes by they enjoy their oppressed.

Tegal district is well known for its nickname “The Japan of Indonesia”. It has

lasted for decades and has involved for many generations. The knowledge and skills of

metal crafting are actually important assets for Pesarean if they can meet global market.

Pesarean is also located in the strategic location that easily can be accessed and can

access the huge market. Only 15 minutes from the train station or only 10 minutes from

the national trans-java road are the advantages of Pesarean that need to be maximized.

Inside of Pesarean, the historical and Javanese-traditional asset of Royal Graveyard

Amangkurat is also the potentials of economic development that has not been revealed

yet. Those are potentials of Pesarean that can be lifted up to improve their capacity.

However, the physical condition of housings in Pesarean is highly different each

other, but mostly dominated by the non-permanent houses. Based on Tegal Community

and Village Empowerment Agency in 2015, there are 309,889 housing units in

Pesarean, but 25% of the totals or around 76,076 are the uninhabitable housing. Since

2012, Tegal has allocated the Regional Government Budget for developing new

housing. Tegal District has gradually increased their concern of creating a better

housing, which indicated by total spent for new housing every year.

For instance in 2012, Tegal allocated its budget for 463 new housing. In 2013,

the budget increased but the total of new housing is lower than 2012 due to some

reasons to 437 new housing. The next year, Tegal was taking seriously on developing

the city which shown by the amount of their spending. In 2014, Tegal spent almost

double the budget from previous year to Rp. 4,317,500,000 and built 848 new housing.

Their budget for new housing keep growing and their target for 2015 is to build 921

new housing.

Even though there is a massive development in Tegal, the distribution of the

budget throughout the city is still relatively uneven. For instance, Kecamatan Adiwerna

has 21 villages and makes them one of the biggest districts in Tegal. Although the fact

that Adiwerna has more population than others, in 2015 they only get 51 new housing

yet another district with a lower population can get up to 90 new housing. In Pesarean,

there are 36 uninhabitable housing and 1575 inhabitable. Beside of uninhabitable

housings, the poor sanitation and floods are also the other factors that can reduce the

capacity of Pesarean community.

In Pesarean village, there is royal graveyard of The Great Hamangkurat I.

According to history written by Hermanus Johanes de Graff, Kangjeng Susuhunan The

Great Amangkurat is a great king of Mataram Kingdom. As an ordinary human being,

he also has a deficiency but not lack of goodness in the Great Sultan son. The true

identity of Susuhunan Amangkurat can be seen after his death. Several sources told,

even after hundreds of year buried, most of his body is still intact. His hair and nails is

still growing and every now and then still need to get treatment. The cemetery of The

Great Susuhunan Amangkurat can be seen directly because the cemetery used to be

built with a transparent material. In the same cemetery, there are also buried 21 sons of

the Great Amangkurat.


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54

Gap of Capacity

In the fact, the village institution has powerless and serves the patron, thus the

patron uses village institution include Head of Village as a tool to repress the people on

the supply-chain of smelting/molding industry. The patron have a role to control look

like a CEO control the holding company with subsidiary small scale smelting and

molding industry.

At the higher level of governmental institution, what-ever at the district,

provincial and central level also have powerless thus also serve the patron by de-

emphasize the law enforcement that refer the law must be done strictly. Meanwhile,

the patron also manages the good relationship with high level of defense and security

official to secure their illegal industry. The patron also has capability to be great

general affair to keep relationship with the bank, police, judge, and attorney, even also

with journalist and NGO activist.

As above-mentioned that previously, people in Pesarean have high social capital

as legacy from their ancestor. They have local wisdom “primbon’ on the guideline on

housing, farming, and agriculture, industry, trading, social relationship, reading the

seasons for farming/agriculture purpose, practical astronomy, and democracy. But, the

local wisdom faded since the mass production on the metal smelting and crafting

growth in Pesarean since 19688. The guideline on housing faded and disappears since

the people were distressed by business interest on the smelting and molding industry.

The housing is not regard to the standard of comfortable and healthy anymore, but

more regard to facilitate their business with space for warehouse, smelter, molding

facilities, etc. In the past, farmers have capacity to prepare the seed, fertilizer and

manage the harvest and sell it with high bargain position. Today, they have no capacity

to prepare the seed, and fertilizer, but they are depended to the government, even to

manage their harvest, they are also depended on middleman and the mostly are sinking

to the debt bonded.

The capacity on the practical astronomy, and reading the seasons are also faded

parallel with their dependency to the government on cultivating season. The

democracy at village level also faded, even though it is an oldest democracy in

Indonesia. Since the 1960s, the present of godfather who control the economy process

in Pesarean, involved to determine the winner of head of village together with bookies

who playing the role to get the money. Direct election for head of village is not pure

democracy, but more on by scenario for godfather and bookies interest.

Lack on many capacity as above mentioned, sure it is influence all of aspects of

people life, such as economy, social, health, culture, education, and perspective. Their

missing on guideline of housing pushed them to the slum sprawl in their village, with

problem on internal –not enough toilet and bathroom/showering–, and external

sanitation – not all of village areas are completed with drainage, water catchment, and

balancing green space–. Furthermore, Pesarean has no detail spatial plan except the

raw mapping on the actual land use. The development process that was implemented

by Local Government such Public Work Agency is spontaneous action without

infrastructure plan as the detail spatial planning which referred to the mid/long term

development planning. Musyawarah Rencana Pembangunan (MUSRENBANG) Desa

that is conducted first step by step refer to the RT (neighborhood) level, and RW

8 In-depth interview with gate keeper “mBak Kuncen” Amangkurat Cemetery, 22 – 23

July 2015.


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55

(kampong) level annually also still formality process rather than genuine participatory

process to formulate development plan9.

Identify key focus areas for building capacity

In relation with capacity building, the needs assessment guides us to conduct:

• Civic education, with content: social analysis, dialog development, voter education,

gender sensitivity, pluralism, human right, and people role/right.

• Livelihood training: environmental friendly smelting and molding process, trading,

negotiation, financing scheme, and business project proposal development.

• Village development perspective: aesthetic village landscaping, sanitation

(internal/external), simple comfortable and aesthetical housing, and simple

ecosystem.

9. Project Identification on Urban Redevelopment

Mitigating Interventions

Based on our assessments, the mitigating intervention should cover two major

goals, first is to mitigate the lead-contaminated area and second is to enhance the

hidden potentials of Pesarean simultaneously. As described before, the study area

consists of three different problems that have interconnected each other. Therefore, the

urban re-development program should also recommend (1) Establishment of Special

Zoning Regulation for integrated Kebasen-Pesarean area (ERIC zone) through RDTR

Kawasan Strategis Kabupaten, 2) Re-planning site of PIK Kebasen followed by

applying environmental friendly technology, and 3) Urban Redevelopment at Pesarean

as RTBL Pesarean.

The ERIC zone needs different governmental interventions. At the map scale

1:5,000, the proper planning instrument would be the detailed spatial planning (RDTR)

followed by zoning regulation (PZ). RDTR and PZ will provide spatial guidance for

detailed type of land uses, the density and intensity of land use, and the technical

regulation of allowed or limited or conditional or prohibited activities. The intervention

for PIK Kebasen area would be a site re-planning that followed by environmental

assessment. Since it is belonged to the private sector, thus the local government needs

to enforce them to do re-planning and improving the standard of procedures in this

area. The last but not least is the Pesarean Area. Based on our field survey, this area is

the best location for conducting the urban redevelopment.

9 Decision making process assessment in Pesarean Village, April 2015.


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57

promote investment and development of planning projects. Through this planning

document, the other stakeholder can know how to participant in this re-development.

The urban redevelopment program consists of physical improvement projects, training

and education activities, economic development, community empowerment, and

environmental recovery.

Physical improvement

Low-cost housing design and development is proposed on the former lead-

contaminated area for about 4-5 hectares, which located next to the cemetery. It will

provide around 100 households mostly for Pesarean people who are still live under the

poverty line and works as the metal workers. It will take cost IDR 9.5 billion to build

two towers with each tower has 40 units. This project can be linked to the affordable

housing program (Rusunami Program) from the Ministry of Public works and housing.

It can also attract private investment and community involvement.

Drainage design and construction, is proposed to overcome the hygiene issues

and flood problems in surrounding cemetery. It will cover around 3 km length of

drainage and thus will cost for about IDR 3 billion without land acquisition. The

government of Tegal district will cover the drainage development.

Communal sanitation program is proposed to address the hygiene and health

issues in each neighborhood association (RW). It will cover 10 communal sanitations

and total cost is IDR 3 billion. The National government through Sanimas program and

local government can be the potential actors to do this program.

Development of public cemetery is proposed to solve the needs of cemetery in

the present and future. It will take 0.5 hectares of vacant land in the beginning and will

expand to reach 1 hectare. The Government of Tegal districts should have annual

budget to provide this cemetery.

Installation of public water tank is proposed to provide clean water in the

lead-contaminated groundwater. It will cover 5 (five) units of water tanks and it costs

for about IDR 1 billion. The Government of Tegal supported by the provincial

government of Central Java province is the responsible institution.

Economic Development

Metal Assembling workshop, is a proposed place where local people

demonstrate their skills in making metal craft. The tourists can see and learn how to do

so and it will be integrated with the cultural tourism of Amangkurat Royal graveyard.

The cost would be IDR 500 million, without land acquisition. The private sectors

should take this role together with the local government.

Special smallholders assembling site, will be developed to accommodate all

metal industries which embedded in the resident’s houses. It will take transition time to

shift their workshop to the special site. This site should be belonged to and managed by

the neighborhood associations. It will become a communal pilot project of industrial

places. All smelters activities will be relocated to the PIK Kebasen. This project should

also involve local and national government and private sector as well.

Revitalization of Hamangkurat Cemetery covers improvement of the quality

of cemetery and its surroundings, new installment of supporting facilities, and adding


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58

the new attraction. A collaborative team between the Royal Graveyard Management,

local government, and national government will take in charge of this project.

Micro-credit supporting program for new proposed livelihood is a incentive

project that involves financial institution and local government in order to assist the

smallholders industries willing to move all smelters activities to PIK Kebasen and

making the assembling process at Pesarean. This project will involve the local

government, banks, donors, and national government.

Non-metal recycling business such as plastic, paper, rubber, and others to

support Tegal as “Garbage Recycling City” because recycling business has become an

icon of Tegal society. Pesarean village has the potential to be the center of recycle not

only for central Java scale but also for the entire Java islands. However, recycling

business must be developed with environment friendly manner by following the

existing regulations.

Culinary and souvenir can developed as part economic development of

Pesarean Village because as part of Pantura area Pesarean Village is passed from

Jakarta and West Java to East Java and vice versa, and Pesarean can be made as a

transit area for domestic tourists. Related to culinary tourism that has been typical of

Tegal people is satay, lamb and “blengong” (a kind of poultry from the breeding of

duck with Manuila duck) satay. In addition to it, is Poci tea also typical of Tegal and

cannot be separated from Tegal people. As for souvenir, in line with the people’s

current habit, metal smelting and molding, various kinds of metal handicrafts can then

be developed

Health and Environmental Recovery

Design and construction of lead-contaminated land isolation is a cleaning up

project for the respective area that covers approximately 5-6 hectares with 6-7 meter

depth. This project will involve the donors and national government, especially in

taking the best action for cleaning up.

Development of green open space aims to provide public space for Pesarean’s

residents to do the social interactions. It will require a parcel of land for about 0.5

hectares. This project will be belonged to the local government and private sectors.

Improving Disposal site is necessary because the lack of capacity of the

existing disposal site. It will cost for about IDR 500 million and will be handled by the

local government.

Health recovery program is design for Pesarean residents who diagnosed

highly exposed by the lead. It will take 2-3 years program and involve not only the

local government agency but also the hospital and other stakeholders.

Training and Education

Training and learning center for metal crafting is an important project to

institutionalize the practical knowledge of metal crafting for the young generation and

will be a hub of knowledge where research and development can take place. This centre

also takes a role as an incubator for metal crafters to increase the competitiveness of

their products in the market. This project will involve the national and local

government, private sectors, and academia. It will cost at least IDR 1 billion.


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59

Non-formal education development of healhty living is a continous

promoting agenda, e.g. advertisement, coaching clinic, pamflet, socialization, etc that

will educate the local residents and also health practitioners on how danger the lead

containment for their family’s health and their neighborhood environment. It will take

3-5 years and should be handled by the NGOs, local government, and donors.

Sanction and Penalty mechanism based on indigenous or local knowledge is

a breakthrough of policy-making by using the local knowledge in order to have an

effective sanction for their people if still doing smelting activities in Pesarean. It can be

a policy study that involves the village organization, local government, and relevant

experts.

Community Empowerment

Strengthening youth organization is 3-5 years project to consolidate the

power of young generation in transforming their settlement. It covers the education,

action research, pilot project, etc. that aims to inspire the young people to do better

intervention for its area. It should be belonged to the responsibility of the village

community, local government, and supported by the donors.

Neighborhood association control mechanism is an advocacy and technical

project to enlighten the function of RT and RW in helping the government to manage

their neighborhood area.

Women and religious program is also a social cohesion project that allows

groups of people building trust each other. It will take 3-5 years so these groups can

take a role as a catalyst for their community building. The local government and village

officers will handle this project.

10. Financial and Economic Analysis

Tegal Revenue and Expenditure

Since the most of the urban redevelopment projects belongs to the local

government, thus we need to understand the financial capacity of Tegal’s Government.

The analysis of current Tegal revenues, recurrent internally generated and other

revenue (funds from irregular sources that can vary significantly from year to year);

and recurrent expenditure, other expenditure (e.g. operation and maintenance) and

development (capital) expenditure, if any to support the ULAB mitigation, including

relocation smelters to PIK Kebasen. The current financial capacity of Tegal District is

demonstrated in the following table.

Table 11. Regional Revenue and Expenditure Budget of Tegal District Fiscal year

2015

No Description Amount (IDR)

1 Revenue 1,968,032,415,000

1.1 Own revenue 255,732,920,000

1.1.1 Local tax revenue 61,657,643,000

1.1.2 Local retribution 18,531,704,000

1.1.3 Managed local source revenue 8,174,560,000


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60

1.1.4 Other own revenues 167,369,013,000

1.2 Equity fund 1,169,764,463,000

1.2.1 Tax revenue sharing 33,909,800,000

1.2.2 General purpose fund 1,085,549,293,000

1.2.3 Specific purpose fund 50,305,370,000

1.3 Other revenues 542,535,032,000

2 Expenditure 2,130,472,755,000

2.1 Direct expenditure 773,694,961,000

2.1.1 Staffs 71,766,107,000

2.1.2 Goods and services 366,004,810,000

2.1.3 Capital 335,924,044,000

2.2 Indirect expenditure 1,356,777,794,000

2.2.1 Staff 1,156,988,972,000

2.2.2 Loan interest 60,000,000

2.2.3 Grant 10,392,000,000

2.2.4 Social support 23,308,800,000

2.2.5 Revenue sharing 8,241,333,000

2.2.6 Financial supports 153,786,689,000

2.2.7 Precautionary expenditure 4,000,000,000

3 Local financing / discrepancy 162,440,340,000

Source: Tegal District Regulation No. 12/2014

The funding from higher level of governments received by Pesarean Village in

the on going fiscal year, according to the Head of Village, is presented in the following

table.

Table 12. Government Funding Received by Pesarean Village Fiscal year 2015

No. Source of funding Amount (IDR) Allocation

1 District government 406 millions 15% allocated to infrastructure

development.

The rest goes to consumption

expenditure and officials empowerment.

2 Provincial

government

50 millions Infrastructure development.

3 Central government 303 millions 5 % goes to officials’ empowerment, the

rest is allocated to infrastructure

development.

Source: Focus Group Discussion, Tegal, July 2nd

2015.

Central government transfer to Pesarean Village is expected to increase in the

following years. In 2016, the transfer will amount to 600 millions IDR, and it is

expected to reach 1 billion IDR in 2017.

Project Revenues and Financial Viability

A little portion of the project goals are designed to have the revenue since those

projects are the social services. There are some projects that perhaps can also bring

back of revenue such as (i) the low-cost housing, (ii) assembling site, (iii) water tank,


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61

(iv) tourism development, etc. However at this stage, the nature of this project whether

to gain revenue back or not are still being discussed within the stakeholders.

Nevertheless, the potential revenue may be estimated roughly. For instance, the

revenue earned by the housing project. According to the Permen PU No. 20/2014,

government may support the low-income households to buy the low-cost housing with

the price of maximum 7.2 millions IDR/m2. Thus, the low-cost housing project may be

expected to bring back the revenue around that amount.

Tourism centered around the revitalized Amangkurat tomb could also be

projected to generate the income. The tomb has a significant historical value for

education purposes. The tomb exhibits important cultural values for the Javanese

society particularly in Tegal, in which the origin of Tegal is closely associated with the

Amangkurat. The tomb is also a destination for religious tourism, approximately 20

buses of pilgrims coming annually.

Currently, the tomb is not used as the main tourist attraction to generate income.

However, once the revitalization takes place, the amount of visitor is projected to

increase significantly, equal to the number of visitors of similar sites. The government

or the management in charge of the tomb may charge the visitor with ticket fee. The

tourism may create the market for street vendors (pedagang kaki lima) who sell

souvenir, food, etc. As comparison, the street vendors in similar sites, such as the

tomb of Ki Ageng Pandanaran in Klaten and the tomb of Syeh Abdullah Mudzakir in

Demak, could earn the monthly income around 1 million IDR to 1.5 mllions IDR

(Kusuma, 2013; Rochmah, 2013). Off course, the street vendors should be organized by

the tomb management, and they are obliged to pay the retribution fee.

Economic Analysis (Pak Satori)

Assess the overall costs and benefits of the project(s). An EIIR analysis is to be

prepared in which the social, environment and economic benefits of the project(s) are

assessed together with the financial analysis. Provide the underlying assumption as

well.

Linking to Finance (Deden)

The urban redevelopment project will also need to look clearly the role of national

government budget e.g. Ministry of Environment and Forestry plan and National

Planning board in providing access to governmental budget. The funding sources could

be identified among public sources (government and governmental agencies) and

private sources (banking sector, donors). The government sector includes the

government operational units in Tegal district and Environment Ministry of Indonesia.

The Environment Ministry has committed to provide 1.5 billion IDR for environmental

recovery. Thus, the money could be allocated for encapsulation projects. On the other

hand, the potential financing capacity of each operational unit in Tegal District is

presented in the following table 4.

Table 13. Potential sources of budget for urban redevelopment

No Operational unit Total direct Relevant expenditure components


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62

expenditure (IDR) (IDR)*

1 Local planning agency

(Bappeda)

6,379,000,000 175 millions (Industrial

technology capacity building)

2 Environment agency

(BLH)

3,844,923,000 # 670 millions (pollutant-

drainage development)

# 866.25 millions (provincial

grant for pollutant-drainage

development)

# 80 millions (households

education on hazardous waste

(B3) )

3 Health agency (Dinkes) 90,196,288,000 160 millions (environment health

promotion)

4 Cooperation, small-

medium enterprises, and

market agency

(Dinkopukmpasar)

24,692,782,000 250 millions (market

infrastructures development)

5 Tourism and culture

agency (Disparbud)

5,924,300,000 25 millions (cultural values

promotion)

6 Public work agency

(PU)

257,018,265,000 # 10 billions (village settlement

arrangement)

# 1,875 millions (cemetery

development program)

# 75 millions (community

housing empowerment)

# 2.5 billions (tourism

infrastructure development)

# 50 millions (water and

sanitation infrastructure

development)

# 150 millions (pollution

impact control)

# 3,091 millions (drainage

development)

7 Industry and trade

agency (Deperindag)

4,370,000,000 # 30 millions (entrepreneurship

development for small-

medium enterprises)

# 50 millions (technology based

entrepreneurship

development)

# 25 millions (industrial

technology development and

support)

Source: Dokumen Pelaksanaan Anggaran - Satuan Kerja Perangkat Daerah, Tegal.

2015

* Potential expenditure components to match the projects.


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63

In addition, the project may give emphasize on revitalization of Palace Tomb

Hamangkurat. The tomb has a significant historical value for education purposes. The

tomb also exhibits important cultural values for the Javanese society particularly in

Tegal, in which the origin of Tegal is closely associated with the Hamangkurat. The

tomb is also a destination for religious tourism, approximately 20 buses of pilgrims

coming annually. The investment planning may involve the Solo Palace, archaeological

department in Central Java province, and the families of Hamangkurat descendants facilitated by Pak Kuncen (the key keeper).

11. Implementation Arrangement

In order to implement the urban redevelopment program, the institutional

arrangement should involve the Head of Pesarean village and the local government as

the acting actors to manage this program. In order to have the program can run

properly, therefore we need a planning process that ensure the role and responsibilities

of each stakeholders. The participation of the PIK Kebasen’s owner is also highly

appreciated because the relocation of the metal industries from Pesarean to Kebasen

depends on the availability of the PIK Kebasen.

12. Potential Risks

Clearly describe initial assessment of the key risks for each proposed project (political,

institutional, social [including gender], economic, capacity, and environmental) and

identify the major assumptions made for recommended projects.

Institutional barrier

The existence of Law no. 23/2014 that prohibits the district operational units to provide

direct grant for villages. The law requires the grant to be directed to the law recognized

local bodies with at least three years of operational experiences. Special consideration

should be taken to deal with this. One alternative is not to ask for a grant; instead, the

team may negotiate and propose the inclusion of certain project components within the

budget plan of relevant operational units.

In addition to that, the strong patronage relationship between smelting businessman

with the bureaucrats, particularly the officials of BLH and KLH, potentially hinder the

law enforcement. This type of relationship may lead to the reluctance of concerned

officials to enforce the environmental law. They incline to rely on persuasive

approaches, which is so far not as effective to change the production behavior. This

condition requires the involvement of higher ups in KLH, to provide a direct and clear

guidance to the responsible officials with respect to the necessity of enforcing the

existing environmental law.


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64

Social barrier

Existing social behavior among the SMEs actors in similar business, where they are

used to work in secrecy and isolation. This behavior prevents them from working in the

communal space, unless their secrecy are prevailing. Special attention should be paid

to the designing of communal production space, so that they could work in isolation

while enabling the pollution treated collectively.

Financing Risk

In general, the sources of financing could be classified into tree components, the

government, the banking sector, and donor/creditors. Each component has its own risk.

The financing from government is allocated through governmental budget which is

determined annually. When the priorities of government is changed, there is a

possibility that the allocation of budget for the project components is altered.

Consequently, the commitment with the concerned governmental units should be

established for the rest of the project life. Meanwhile, the credit from banking sector

subject to the national and global market conditions. Pessimistic situation of national

economy will be responded by the increase in credit interest rate, thus burdening the

project costs. The same logic also applies to the loan from international donor/creditors.

Pessimistic prediction of national economy that lead to the decrease in exchange rate of

national monetary will weight down the projects. To mitigate the risk, available

schemes in the money market such as forward contract and swap should be considered.

13. Future PS, if necessary

The next steps of financial analysis would be to work out preliminary project

cost estimates, including the project components that are not yet estimable, in greater

detail. The following main categories will be distinguished: investments; operation and

maintenance; and re-investments during the life cycle. Afterward, conducting cost

effectiveness analysis for non-revenue earning project components, and financial cost-

benefit analysis (CBA) for revenue earning project components. Financial CBA aims to

assess the financial viability of the proposed project, i.e., whether the proposed project

is financially attractive or not from the Blacksmith’s viewpoint. Instead of the entire

economy, the unit of analysis in the financial benefit-cost analysis is the project.

The financial benefit-cost analysis will include the following eight steps:

• determining annual project revenues;

• determining project costs;

• calculating annual project net benefits;

• determining the appropriate discount rate (i.e., weighted average cost of

capital serving as proxy for the financial opportunity cost of capital);

• calculating the average incremental financial cost;

• calculating the financial net present value;

• calculating the financial internal rate of return; and

• conducting risk and sensitivity analysis.


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65

14. Conclusion and Recommendation

Based on our initial assessment on Pesarean in regard to its feasibility to have

urban redevelopment, we conclude that firstly the life environment of Pesarean has

shifted from fresh air to contaminated land. The old village that actually has a beautiful

landscape in the past has become urbanizing region that are not developed orderly and

sustainably. The lead-contaminated area is a triggering factor that opens public eye of

how bad the degraded environment has taken place in Pesarean. Starting from the low

quality of groundwater and polluted land to the health impacts for the workers, women,

and children, this contamination should have a strict intervention and it should be done

immediately.

In order to have an orderly proper intervention, therefore we need to look at the

other factors that may influence the success of this transformation. Having reviewed the

regulation aspects that prevail in Tegal, we thus suggest the three main interventions to

overcome the problem in a comprehensive way. First, establishing the zoning

regulation of ERIC zone, second, enforcing the site re-planning of PIK Kebasen, and

implementing the urban redevelopment in Pesarean.

Based on our stakeholder mapping, economic and financial analysis, and

capacity assessment, we focus our mitigating intervention on the urban redevelopment

program in Pesarean. Counting on the commitment from the national and local

government, community aspiration, and highly concerned private sectors, and initial

engagement with donors as well, the institutional arrangement of urban redevelopment

is quite established for now. Even though, this collaborative team has not yet been

legally established, but the mutual understanding of the role is starting to be developed.

The result of our economic assessment also showed that it is difficult for local

people to shift their livelihood to the other profession as a metal crafter. Beside of

income gap, the traditional value and the positive trend of machinery industries are the

other main reasons why they are not willing to shift their livelihood. Therefore, metal

smelter business as a business that has become a habit of Pasarean community, remains

the choice of businesses in urban development program. However, the business must be

developed with equitable businesses, both economically and environmentally. As

economically equitable must be calculated fair salary for workers and tax. As

environmentally equitable the business must be moved to PIK area and implemented

cleaner production technology. One of the things that are important of cleaner

production technology is good hose keeping of PIK area.

However, according to our health assessment, in term of protecting human

health from the lead exposure from metals’ smelters, the only choice is to remove all of

metals’ smelters far away from municipality of population. It is important to separate

the harmful smelters process from their daily life activities. IThus, the urban

redevelopment requires the re-planning process of Pesarean development.

In order to push the social transformation process in the community, we need to

provide:

• Civic education, with content: social analysis, dialog development, voter

education, gender sensitivity, pluralism, human right, and people role/right.

• Livelihood training: environmental friendly smelting and molding process,

trading, negotiation, financing scheme, and business project proposal

development.


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66

• Village development perspective: aesthetic village landscaping, sanitation

(internal/external), simple comfortable and aesthetical housing, and simple

ecosystem.

We also recommend to link, and learn by introducing multi-sectoral action plan

group approach: smelter owners, waste traders/hazardous waste agent, investors

(banking, financing institution, entrepreneur), technology and knowledge transfer

agency, local and national regulator/law enforcement, and civil society in the process of

environmental friendly smelter adoption.

At the community level, strengthening local Civil Society Organization in the

framework to escort the process of social transformation is important. It should be

followed by transferring knowledge and technology by leading public awareness, and

pressure group; implementing strict liability of law enforcement with regard to the law

and regulation on environmental protection and management; and monitoring

environmental impact of metal/scraped metal smelter, and molding/crafting process in

Tegal District.

Conclution & Recommendation;

1. Clean up of contaminated site, where this effort should be under coordination

with MOEF, Local Government and also the business person of the smelters

support by public surrounding.

2. The person that having high Lead contamination, should give support by

Ministry of Health to continuing their medical treatment and observation by the

public health office and support by MOH.

3. Socialization & education for reducing the impact of Lead to human health

should be continuisly done by Local Government with supporting by MOEF

and MOH to all people that are living and working in the smelter of crafting in

Kebasen and Pasarean.

4. Moving of all smelters from Pasarean by Local Government , but in the PIK

Kebasen itself should having re-planning of KIP, technology that comply with

environmental standard and the organization of the smelters to complay with

environmental regulation.

5. With supporting by the smelters organization, Local Government these

activities will having environmental permit and business permit to make these

activities are legal.

6. Having continuing the socialization and education to all stake-holders.

7. After having support for clean up, redevelopment of Pasarean and redesign of

PIK Kebasen , Local Government and MOEF should do the Law enforcement

as mentioning by Law 32 Year 2009.

15. Appendix

1. Surat rekomendasi Blacksmith Institute dan persetujuan Kementerian Lingkungan

Hidup dan Kehutanan

2. List of villages and sub-districts of Tegal District


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Table A.1 Sub-districts and Villages in Tegal District

Kramat Munjung Agung, Mejasem Barat, Mejasem Timur, Dinuk,

Jatilawang, Kemantran, Babakan, Kertaharja, Ketileng,

Kepunduhan,Bangungalih, Tanjung Harja, Kemuning,

Plumbungan, Maribaya, Kramat, Kertayasa, Bongkok, Padaharja,

Kelurahan Dampyak

Warureja Banjaragung, Banjarturi, Demangharja, Kedungjati, Kedungkelor,

Kreman, Sidamulya, Sigentong, Sukareja, Warureja, Kendayakan

Suradadi Bojongsana, Gembongdadi, Harjasari, Jatibogor, Jatimulya,

Karangmulya, Karangwuluh, Kertasari, Purwahamba, Sidaharja,

Suradadi

Tarub Brekat, Bulakwaru, Karangmangu, Kesamiran, Kesadikan,

Mangunsaren, Marga Padang, Mindaka, Kalijambe, Karangjati,

Kedokansayang, Purbasana, Setu, Tarub, kemanggungan

Talang Talang, Wangandawa, Pacul, Cangkring, Dawuhan, Bengle,

Kebasen, Tegalwangi, Kajen, Pegirikan, Pekiringan, Pekiringan

Dukuhturi Pepedan, Debong Wetan, Grogol, Kepandean, Bandasari,

Pagongan, Sutapranan, Pekauman Kulon, Karanganyar, Kupu,

Sidakaton, Sidapurna, Lawatan

Adiwerna Pedeslohor, Lumingser, Kedungsukun, Pagiyanten, Penarukan,

HarjosariLor, HarjosariKidul, TembokLor, TembokKidul,

TembokBanjaran, TembokLuwung, Adiwerna, Kalimati,

Lemahduwur, Pesarean, Ujungrusi, Pegedangan, Kaliwadas,

Pecangakan, Gumalar, Bersole

Dukuhwaru Blubuk, Bulakpacing, Dukuhwaru, Gumayun, Kalisoka, Kebunan,

Pedagangan, Salapura, SelarangLor, Sindang

Slawi Dukuh Salam, Dukuhwringin, Kalisapu, Slawi Kulon, Trayeman,

Kagok, Kudaile, Pakembaran, Procot, Slawi Wetan

Pangkah Pangkah, BogaresLor, Bogareskidul, Penusupan, Pener,

DukuhjatiKidul, DukuhjatiLor, Dermasuci, Dukuhsembung,

GrobogKulon, GrobogWetan, Bedug, Pecabean, Kalikangkung,

Purbayasa, Rancawiru, Paketiban, Balamoa, Jenggawur, Talok,

KendalSerut

Kedungbanteng Dukuhjati Wetan, Karang Anyar, Karangmalang, Kebandingan,

Kedung Banteng, Margamulya, Penujah, Semedo, Sumingkir,

Tonggara

Jatinegara Argatawang, Capar, Cerih, Dukuhbangsa, Gantungan, Jatinegara,

Kedungwungu, Lebakwangi, Lembahsari, Luwijawa, Mokaha,

Padasari, Penyalahan, Setail, Sumbarang, Tamansari, Wotgalih

Lebaksiu Balaradin, Dukuhdamu, Dukuhlo, Jatimulyo, Kajen, Kambangan,

Kesuben, Lebak Goah, Lebaksiu Kidul, Lebaksiu Lor, Pendawa,

Slarang Kidul, Tegalandong, Timbangreja, Yamansari


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Balapulang Balapulang Kulon, Balapulang Wetan, Banjar Anyar, Batuagung,

Bukateja, Cenggini, Cibunar, Cilongok, Danaraja, Danawarih,

Harjawinangun, Kalibakung, Kaliwungu, Karangjambu,

Pagerwangi, Pamiritan, Sangkanjaya, Sesepan, Tembongwah,

Weringin Jenggot

Pagerbarang Jatiwangi, Karanganyar, Kedungsugih, Kertaharja, Mulyoharjo,

Pagerbarang, Pesarean, Rajegwesi, Randusari, Semboja, Sido

Mulyo, Srengseng, Surokidul

Margasari Danaraja, Dukuh Tengah, Jatilaba, Jembayat, Kaligayam,

Kalisalak, Karangdawa, Marga Ayu, Margasari, Pakulaut, Prupuk

Selatan, Prupuk Utara, Wanasari

Bumijawa Batumirah, Begawat, Bumijawa, Carul, Cawitali, Cempaka,

Cintamanik, Dukuh Benda, Guci, Gunung Agung, Jejeg,

Muncanglarang, Pagerkasih, Sigedong, Sokasari, Sokatengah,

Sumbaga, Traju

Bojong Batunyana, Bojong, Buniwah, Cikura, Danasari, Dukuhtengah,

Gunungjati, Kajenengan, Kalijambu, Karangmulyo, Kedawung,

Lengkong, Pucang Luwuk, Rembul, Sangkanayu, Suniarsih,

Tuwel

3. Calculation table of Redevelopment costs.

Preliminary estimation and summary of project costs of identified and prioritized

projects as stated in section 3.2, are presented in the following table.

Table A.2 Preliminary estimates of project costs

No Project tittle Cost estimation

1 Low-cost housing design and

development

2,300,000 IDR / m2, total cost of house with

one floor 1

, or 7.2 millions IDR/m2, selling

price for small flats with 20 floors 2

2 Drainage design and construction 1,100,000 IDR / m23

3 Land acquisition for encapsulation

program

Free, the land is belong to the village*

4 Design and construction of

encapsulation

18.5 millions IDR/m3

5 Communal sanitation program 1,500,000 IDR/m21,3

6 Relocation program of Elementary

school and 3-5 housings

2,300,000 IDR / m2, equivalent to the total

cost of house with one floor1

7 Development of special smallholders

industrial site



8 Training and learning center for

metal crafting



9 Revitalization of Amangkurat Tomb Not yet estimable

10 Urban signage 150,000 IDR/unit

11 Development of green open space Not yet estimable


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on July 28, 2015, at 04.06 pm.

http://ketikketik.com/gaya-hidup-3/rekreasi-2/jalan-jalan/2014/08/20/si-jepangnya-

indonesia-tegal-2.html, accessed on July 04, 2015, at 02.46 P.M.).

[http://www.ecomena.org/managing-lead-acid –batteries]

http://ketikketik.com/gaya-hidup-3/rekreasi-2/jalan-jalan/2014/08/20/si-jepangnya-

indonesia-tegal-2.html, accessed on July 04, 2015, at 02.46 P.M.).

Dirjen Cipta Karya, 2013. Katalog Infrastruktur Bidang Cipta Karya yang Potensial

dibiayai melalui Program CSR, Jakarta

Kurnia Sari, A.W., 2013. Peran Kredit Usaha Rakyat (KUR) Bank Jateng terhadap

Perkembangan Usaha Mikro di Kabupaten Boyolali, Skripsi, Universitas Diponegoro,

Semarang.

12 Development of public cemetery 500,000 - 1,000,000 IDR/m21, for land

acquisition in Pesarean Village, depend on the

distance to the public road.

13 Development of disposal site 1,500,000 IDR/m21,3

14 Installation of public water tank 25-60 millions IDR for water pump, plus

150,000/capita for public water tank4

15 Micro-credit supporting program for

new proposed livelihood

Not yet estimable

16 Relocation of smelter and metal

craftsmen to PIK Kebasen

30 milions IDR/person1

17 Installation of environmental

friendly rotary furnace for lead-

battery recycling.

1.5-2 billions IDR/unit5

1 Field data

2 Permen PU No. 20/2014

3 Permen PU No. 11/2013

4 Dirjen Cipta Karya

5San Lan International


Tegal Indonesia

70

Kusuma, H.A., 2013. Pemberdayaan Masyarakat dan Dampak Ekonomi Pariwisata di

Desa Wisata Paseban Kecamatan Bayat Kabuaten Klaten, Skripsi, Universitas Sebelas

Maret, Surakarta.

Peraturan Menteri PU No. 20/2014, Jakarta

Peraturan Menteri PU No. 11/2013, Jakarta

PT Sarana Multi Infrastruktur, 2014. Panduan Penyelenggaraan Kerjasama

Pemerintah-Swasta (KPS) dalamPenyediaan Infrastruktur, Jakarta.

Rokhmah, R.H., 2013. Distribusi Spasial dan Kontribusi Obyek Wisata pada

Pendapatan Rumah Tangga di Kecamatan Ungaran Barat Kabupaten Semarang,

Skripsi, Universitas Negeri Semarang, Semarang.

Developing Environmentally Sound ULAB Recycling in the Developing World and

Countries in Transition,” by Brian Wilson, ILMC Program Manager, 2014

Table&of&Contents&

BASELINE!STUDY:!URBAN!REDEVELOPMENT!OF!LEAD4CONTAMINATED!AREA!IN!PESAREAN!

TEGAL,!INDONESIA!.....................................................................................................................!1!

Abbreviation!..........................................................................................................................!2!

1.!Introduction!......................................................................................................................!3!Background!.....................................................................................................................................!3!

Objective!PFS!...................................................................................................................................!6!

Methodology!....................................................................................................................................!7!

Schedule!............................................................................................................................................!8!

Involved!consultants!and!counterpart!...................................................................................!8!

2.!Hazardous!Contamination!Issues!in!Tegal!............................................................!10!Geographical!issue!.....................................................................................................................!10!

PESTLE!Analysis!..........................................................................................................................!16!

3.!Urban!redevelopment!strategy!and!governance!context!................................!24!

4.!Regulatory!Assesment!.................................................................................................!27!RTRW!Kabupaten!Tegal!2012T2032!....................................................................................!27!

RPJMD!2015T2019!......................................................................................................................!30!

Environmental!Regulation!......................................................................................................!33!

5.!Initial!Environmental!Assessment!!!.........................................................................!35!

6.!Initial!Health!Assessment!!!.........................................................................................!36!

7.!Initial!Economic!Assessment!!!...................................................................................!39!Livelihood!Assessment!.............................................................................................................!39!

Smelter!Business!Cycle!and!Supply!Chain!..........................................................................!41!

Possible!Alternative!of!Pasarean’s!People!Livelihood!...................................................!43!

Economic!Sustainability!Analysis!of!Metal!Recycling!Busines!....................................!45!


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71

Environmental!Cost!and!Benefit!Cost!Analysis!.................................................................!46!

8.!Initial!Assessment!of!Capacity!of!Pesarean!Community!!!................................!49!

9.!Project!Identification!on!Urban!Redevelopment!................................................!55!Mitigating!Interventions!..........................................................................................................!55!

Projects!Description!of!Urban!redevelopment!at!Pesarean!........................................!56!

Physical!improvement!..............................................................................................................!57!

Economic!Development!............................................................................................................!57!

Environmental!Recovery!.........................................................................................................!58!

Training!and!Education!............................................................................................................!58!

Community!Empowerment!.....................................................................................................!59!

10.!Financial!and!Economic!Analysis!..........................................................................!59!Tegal!Revenue!and!Expenditure!...........................................................................................!59!

Project!Revenues!and!Financial!Viability!...........................................................................!60!

Economic!Analysis!(Pak!Satori)!.............................................................................................!61!

Linking!to!Finance!(Deden)!.....................................................................................................!61!

11.!Implementation!Arrangement!...............................................................................!63!

12.!Potential!Risks!.............................................................................................................!63!Institutional!barrier!..................................................................................................................!63!

Social!barrier!...............................................................................................................................!64!

13.!Future!PS,!if!necessary!..............................................................................................!64!

14.!Conclusion!and!Recommendation!.........................................................................!65!

15.!Appendix!........................................................................................................................!66!

Reference!..............................................................................................................................!69!

List&of&Figures&

Figure 1.! Recyclable elements of ULAB [www.greencarreports.com] ........................ 3!

Figure 2.! Proses daur ulang aki bekas ........................................................................... 3!

Figure 3.! Foto dan Tabel: Kajian lingkungan hidup dan kesehatan .............................. 5!

Figure 4.! Alur proses pemilihan lokasi pilot ................................................................. 5!

Figure 5.! Methodology of Study ................................................................................... 7!

Figure 6.! The health impacts caused by lead-poisoning (source: NSW-EPA, 20xx) .. 10!

Figure 7.! Lead poisoning mechanism .......................................................................... 11!

Figure 8.! Map of ERIC Study Area ............................................................................. 12!

Figure 9.! Map of Talang sub-district Area .................................................................. 13!

Figure 10.! The PIK Kebasen Area .............................................................................. 14!

Figure 11.! RTRW Adiwerna ....................................................................................... 15!

Figure 12.! The Study Area of Pesarean ....................................................................... 16!

Figure 13.! Structure of Tegal Village Government ..................................................... 19!

Figure 14.! PESTLE Analysis ...................................................................................... 23!

Figure 15.! Urban Redevelopment ................................................................................ 25!

Figure 16.! Urban redevelopment in planning system .................................................. 26!

Figure 17.! Urban Redevelopment Stakeholder ........................................................... 27!

Figure 18.! RTRW Tegal on Adiwerna sub-district ..................................................... 29!

Figure 19.! Planning System of Tegal District ............................................................. 30!


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72

Figure 20.! Hasil studi Universitas Padjajaran ............................................................. 36!

Figure 21.! Tegal Livelihood Trend ............................................................................. 40!

Figure 22.! Pasarean Village Livelihood ...................................................................... 41!

Figure 23.! Distribution of Smelter and Craftsmen in Pasarean Village (outside PIK)41!

Figure 24.! ULAB Supply Chain .................................................................................. 42!

Figure 25.! Metal Supply Chain ................................................................................... 42!

Figure 26.! Metal Smelter Business Mechanism .......................................................... 43!

Figure 27.! Land Use of Tegal Residence .................................................................... 44!

Figure 28.! Population by sex, age, and education ....................................................... 50!

List&of&Photos&

Photo 1.! Proses peleburan informal ............................................................................... 4!

Photo 2.! Peta Kabupaten Tegal dengan highlight Desa Pesarean ............................... 35!

Photo 3.! Peleburan logam sebelum relokasi ................................................................ 35!

Photo 4.! Studi kesehatan Mer-C .................................................................................. 37!

List&of&Tables&

Table 1.! Matriks pembobotan lokasi ............................................................................. 6!

Table 2.! Time Schedule ................................................................................................. 8!

Table 3.! Development priorities of Tegal District ....................................................... 31!

Table 4.! The BLL’s sample test ................................................................................... 38!

Table 5.! Comparing BLL’s 2011 and 2015 ................................................................. 38!

Table 6.! Livelihood Trend ........................................................................................... 40!

Table 7.! Metal Smelting Business Profit ..................................................................... 46!

Table 8.! BCR Analysis of ULAB Smelter Business ................................................... 47!

Table 9.! BCR Analysis of Metel Smelter Business ..................................................... 48!

Table 10.! Mitigating Intervention ................................................................................ 56!

Table 11.! Regional Revenue and Expenditure Budget of Tegal District Fiscal ......... 59!

Table 12.! Government Funding Received by Pesarean Village Fiscal year 2015 ...... 60!

Table 13.! Potential sources of budget for urban redevelopment ................................. 61!

technical assistance consultant’s report · cemetery or burial, and in this village there is the...

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