INO: Regional Roads Development Project

Transcription

1 Land Acquisition and Resettlement Plan October 2011 INO: Regional Roads Development Project Central Java (Puring-Petanahan Segment of Tambakmulyo-Wawar Road Section) Prepared by Directorate General of Highways, Ministry of Public Works for the Asian Development Bank.

2 CURRENCY EQUIVALENTS (as of 14 October 2011) Currency unit rupiah (Rp) Rp1.00 = $ $1.00 = RP 8,892 ADB AH BAPEDA BAPPENAS COI DGH DMS DP EA IOL LAC LARP MFF MPW NJOP PMU PIC RCS ROW RRDP SES SETDA SPS TA ABBREVIATIONS Asian Development Bank Affected household Provincial / District Development Planning Agency National Development Planning Agency Corridor of impact Directorate General of Highways Detailed measurement survey Displaced person Executing agency Inventory of losses Land Acquisition Committee Land Acquisition and Resettlement plan Multi-tranche financing facility Ministry of Public Works Nilai Jual Obyek Pajak (appraised taxable value of land) Project Management Unit Project Implementing Consultant Replacement cost study Right-of-way Regional Roads Development Project Socioeconomic survey Secretaris Daerah (Kabupaten Kebumen) Safeguard Policy Statement (ABD) Technical assistance NOTE In this report, "$" refers to US dollars. This land acquisition and resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 DEFINITION OF TERMS Compensation - This is payment given in cash or in kind to displaced persons (DPs) at replacement cost or at current market value for assets and income sources acquired or adversely affected by the project. Corridor of impact (COI) - This is the area which will be cleared of all structures and obstructions. In the Tambakmulyo-Wawar Road Section, the entire road right-of-way (ROW) is being acquired and cleared. Cut-off date - Refers to the date after which people will NOT be considered eligible for compensation i.e. they are not included in the list of DPs as determined by a census of persons displaced from assets and livelihoods. In this Project, the DGH and the Land Acquisition Committee (LAC) will disclose the cut-off-date to residents and local officials of each affected village which coincides with the conduct of the detailed measurement survey (DMS). Detailed Measurement Survey (DMS) Displaced person (DP) / Affected Household (AH) - With the use of approved detailed engineering drawings, this activity involves the finalization and/or validation of the results of the IOL, severity of impacts, and list of DPs done during the preparation of this land acquisition and resettlement plan (LARP). The final cost of resettlement will be determined after the DMS. - Refers to any person or persons, household, firm, private or public institution that, on account of changes resulting from the Project, will have its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (e.g., residential, commercial, agricultural, and/or grazing land), water resources or any other fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without physical displacement. In the case of affected household (AH), it includes all members residing under one roof and operating as a single economic unit, who are adversely affected by the project. Entitlement - Refers to a range of measures, such as compensation in cash or in kind, income restoration support, transfer assistance, livelihood substitution, relocation support, etc., which are provided to the DPs or AHs depending on the type and severity of their losses to restore their economic and social base. Income restoration - This involves re-habilitating the sources of income and livelihoods of severely affected and vulnerable DPs and AHs to supplement compensation received for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life. Inventory of Losses (IOL) - This is the listing of assets as a preliminary record of affected or lost assets during the preparation of the LARP where all fixed assets (i.e., land used for residence, commerce, agriculture; dwelling units; stalls and shops; secondary structures, such as fences, tombs, wells; standing crops and trees with commercial value; etc.) and sources of income and livelihood inside the COI are identified, measured, their owners identified, their exact location pinpointed, and their replacement costs calculated. The severity of impact on the affected assets and the severity of impact on the livelihood and productive capacity of the DPs are likewise determined.

4 Involuntary Resettlement - It is the displacement of people, not of their own volition but involuntarily, from their homes, assets, sources of income and livelihood in the COI in connection with the Project. Land acquisition - Refers to the process whereby a person in the Tambakmulyo- Wawar Road Section is compelled by the government through the LAC and DGH to alienate all or part of the land s/he owns or possesses, to the ownership and possession of the government for the Project in return for compensation at replacement cost. Relocation - This is the physical displacement of a DP from his/her pre-project place of residence and/or business. Replacement cost - Means the amount in cash or in kind needed to replace an asset in its existing condition, without deduction of transaction costs or depreciation and salvageable materials, at prevailing market value, or its nearest equivalent, at the time of compensation payment. Replacement Cost - This refers to the process involved in determining replacement Study costs of affected assets based on empirical data. Resettlement - Refers to various measures provided to DPs or AHs to mitigate any and all adverse social impacts of the project, including compensation, relocation (where relevant), and rehabilitation as needed. Resettlement Plan - This is a time-bound action plan with budget, setting out the resettlement objectives and strategies, entitlements, activities and responsibilities, resettlement monitoring, and resettlement evaluation. Severely affected DPs/AHs - This refers to DPs and AHs who will (i) lose 10% or more of their total productive assets, (ii) have to relocate, and/or (iii) lose 10% or more of their total income sources due to the project. Vulnerable groups - These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized due to the project and specifically include: (i) households that are headed by women with dependents, (ii) household heads with disabilities, (iii) households falling under the generally accepted indicator for poverty, (iv) elderly households who are landless and with no other means of support, and (v) landless households.

5 TABLE OF CONTENTS EXECUTIVE SUMMARY I I. PROJECT DESCRIPTION 4 A. Background 4 B. Description of the Puring-Petanahan Road Segment 5 C. Civil Works to be Undertaken 6 D. Measures Adopted to Minimize Resettlement 6 E. Objectives of the LARP 7 F. Parts of this Resettlement Planing Document 7 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 9 A. Sources of Data on Project Impacts for the LARP 9 B. Cut-Off Date for Eligibility to Project Entitlements 9 C. Compensation 10 D. Impacts Survey 11 E. Impacted Population 20 F. Summary of Impacts 20 III. SOCIO-ECONOMIC PROFILE OF AFFECTED HOUSEHOLDS 21 A. Relocating 31 AHs 22 B. 5 AHs in Re-Aligned Road Sections 24 IV. CONSULTATION AND DISCLOSURE 25 V. GRIEVANCE REDRESS MECHANISM 30 A. Related to the Inventory of Affected Assets 30 B. Related to Other Aspects of Land Acquisition and Resettlement 31 VI. LEGAL AND POLICY FRAMEWORK 31 A. Relevant Laws and Regulations in Indonesia 31 B. ADB Policies 32 C. Gaps Analysis and Project Principles 32 D. Project Resettlement Policy 34 VII. PROJECT ENTITLEMENTS 35 VIII. RESETTLEMENT STRATEGY 38 A. Compensation and Allowances of AHs 38 B. LARP Updating and Implementation 39 IX. IMPLEMENTATION ARRANGEMENTS 41 A. Directorate General of Highways 41 B. District Government 41 C. Project Supervision Consultants 42 D. Implementation Schedule of the LARP 42 X. MONITORING AND EVALUATION 42 A. Internal Monitoring 42 B. External Monitoring and Evaluation 43 XI. DUE DILIGENCE OF RESETTLEMENT IN PETANAHAN 43 A. Background 43 B. Calculating Compensation for Affected Fixed Assets 44 C. Affected Fixed Assets and Compensation Given 44 D. Impacted Population 46 E. Corrective Actions 47 XII. RESETTLEMENT COSTS 47 A. Cost Estimates and Inflation Adjustment 48 B. Estimated Costs of Resettlement 48

6 LIST OF TABLES Table 1: Road Sections in Central Java... 4 Table 2: Villages Traversed by Tambakmulyo-Wawar Road Section... 6 Table 3: Summary of Affected Private Lands Table 4: Summary of Affected Village Lands Table 5: Partially Affected Permanent Houses Table 6: Partially Affected Permanent House-and-store Table 7: Partially Affected Semi-permanent Houses Table 8: Partially Affected Temporary Structures (Darurat) Table 9: Entirely Affected Permanent Houses Table 10: Entirely Affected Permanent House-and-store Table 11: Entirely Affected Semi-permanent Houses Table 12: Entirely Affected Temporary Structures (Darurat) Table 13: Affected Permanent Shops Table 14: Affected Semi-permanent Shop Table 15: Affected Temporary Shop Table 16: Affected Permanent Terraces Table 17: Affected Semi-permanent Terrace Table 18: Affected Building Foundation (no superstructure) Table 19: Affected Well Table 20: Partially Affected Public Buildings Table 21: Affected Concrete Fences of Public Elementary Schools* Table 22: Entirely Affected Public Building Table 23: Affected Concrete Fences (Public Facilities) Table 24: Affected Trees, Tambakmulyo Table 25: Affected Trees, Surorejan Table 26: Affected Trees, Waluyorejo Table 27: Affected Trees, Sidoharjo Table 28: Affected Trees, Karanggadung Table 29: Summary of Impacts Table 30: Heads of Relocating AHs by Physical Condition, Age and Ethnicity Table 31: Educational Attainment of Heads of Relocating AHs Table 32: Household Size of Relocating AHs Table 33: Primary Occupation of Heads of Relocating AHs Table 34: Combined Monthly Income of the Relocating AHs Table 35: Home Appliances of the Relocating AHs Table 36: Ownership of Transportation by the Relocating AHs Table 37: Relocation Options Table 38: Physical Condition, Age and Ethnicity of the AHs Table 39: Educational Attainment of the AHs Table 40: Members of the Household Size of the AHs Table 41: Primary Occupation of the AHs Table 42: Quarterly Net Income of the AHs from their Farms Table 43: Highlights of Public Meetings Table 44: Gap Analysis Table 45: Entitlement Matrix Table 46: Compensation due to AHs in 5 Villages Table 47: Schedule of Resettlement Activities Table 48: Losses of AHs Table 49: Losses of Village Government Table 50: Summary of Compensation Given Karangrejo and Tegalretno Table 51: Summary of Impacts Table 52: Summary of Resettlement Costs... 48

7 LIST OF FIGURES Figure 1: Project Location... 4 Figure 2: Southern Java Corridor... 5 Figure 3: ROW in Re-aligned segment of the Project road in Karangrejo... 8 Figure 4: Beginning of Road Section Tambakmulyo... 8 Figure 5: Typical Road Section... 8 Figure 6: Interview with Residents in Surorejan Village (Puring Sub-district)... 8 Figure 7: Sandy Road in Karanggadung Village (Petanahan Sub-district)... 8 Figure 8: Narrow Sandy Road in Tegalretno Village (Petanahan Sub-district)... 9 Figure 9: Roadside Quarrying in Tegalretno Village (Petanahan Sub-district)... 9 Figure 10: New Elementary School in Karangrejo LIST OF APPENDICES Appendix 1 Bupati Decree No. 29 Setting the Unit Costs of Structures Appendix 2 Bupati Decree No. 10 Setting the Unit Costs of Crops and Trees Appendix 3 List of Participants in Public Meetings Appendix 4 Public Information Leaflet Appendix 5 List of Development Programs of BAPPEDA for 2012

8 EXECUTIVE SUMMARY Background. The Tambakmulyo-Wawar road section (38.5 km) is one of 3 sections in Central Java that are being considered for inclusion in the proposed Regional Roads Development Project (RRDP). Tambakmulyo-Wawar is located in Kebumen District, while the Wawar-Congot Purworejo road section and Giri Woyo-Duwet road section are located in Purworejo and Wonogiri Districts, respectively. The land for the first 24 km of the Tambakmulyo-Wawar road section had been acquired by the Government as early as Compensation was completed in 2010 for the sub-districts of Mirit, Ambal, Bulupesantren, and Klirong. In March and April 2010, a number of households were interviewed as part of the due diligence and these households confirmed that they already received payment for their land and assets although they still continue to use the land that were already acquired from them. In July 2011 visit by the Asian Development Bank (ADB) and the Directorate General of Highways (DGH), it was noted that previous landowners were still allowed by the Government to use the land for farming and the trees have not been cut. It was further confirmed by the Kebumen District that the previous landowners will continue to utilize the land for productive purposes and will be provided sufficient time to clear the land prior to civil works construction through socialization during project implementation. This LARP is for the second segment of the Tambakmulyo-Wawar Road Section that traverses the sub-districts of Puring and Petanahan ( km), specifically for 4 villages in the sub-district of Puring (i.e., Tambakmulyo, Surorejan, Waluyorejo, and Sidoharjo) and the village of Karanggadung in the sub-district of Petanhana. During the due diligence carried out by the ADB Mission in July 2011, it was learned that land acquisition had not yet been carried out in said vilages, with the exception of the villages of Karangrejo and Tegalretno in the sub-district of Petanahan. To comply with ADB Safeguard Policy Statement, ADB and DGH immediately mobilized a team of consultants to assist DGH in the preparation of this LARP to ensure that resettlement in the aforementioned 5 villages is carried out in a manner consistent with the laws of Indonesia and with the 2009 ADB Safeguard Policy Statement. Additionally, this document includes a separate section for the 2 villages in Petanahan where compensation to affected households (AHs) had already been given by district authorities, Said section includes (i) an assessment of the adequacy of the compensation and assistance provided to the AHs for their losses, and (ii) corrective actions to make resettlement in said 2 villages compliant with the laws of Indonesia and with the 2009 ADB Safeguard Policy Statement. Scope of Resettlement Impacts. In the villages of Karangrejo and Tegalretno in Petanahan Sub-district, where households have already received in August 2011 their compensation for land, structures, plants and trees, Project impacts include acquisition of 118,409 m 2 of private and village lands; 7 entirely affected houses; 1 entirely affected private mosque; 2 entirely affected village buildings; and 2 entirely affected kiosks. In the remaining 5 villages of Tambakmulyo, Surorejan, Waluyorejo, Sidoharjo in Puring Sub-district, and Karanggadung Village in Petanahan Sub-district where compensation for affected assets has not yet been given, Project impacts include 244,293 m 2 of private and village lands; 24 entirely affected houses; 6 entirely affected kiosks; and 1 entirely affected village mosque. In addition, 169 AHs in Karangrejo and 5 AHs in Karanggadung are affected by the loss of farm land in the re-aligned segments of the road. 106 of these AHs are losing 10% or more of their total productive assets. A number of secondary structures, particularly terraces and fences, are also affected. In Karangrejo and Tegalretno, a total of 17,095 trees are affected, while an estimated 23,483 trees are affected in the 5 other villages. In all, a total of 1,214 households are affected by land acquisition. Socio-economic Conditions. Based on the socio-economic survey covering 205 AHs, income is mostly derived from farming, while other AHs derive their income from employments in the local government, from running small businesses, and from working as

9 farm laborers. There are 10 households who reported that their monthly incomes were below the official poverty line; 3 households that were headed by women; and 31 households that were headed by the elderly. Additional measures are incorporated in this LARP to help ensure that these households, who are considered particularly vulnerable, are not further disadvantaged and that, along with the other affected households, they will equally benefit from the Project. There are no affected ethnic minorities in the Project area. Participation, Disclosure, and Grievance Redress. The AHs were met and interviewed during LARP preparation. Local officials were also met and their concerns and suggestions were gathered during the resettlement planning process. The grievance mechanism has been designed to ensure that the concerns and grievances of AHs are addressed and resolved in a timely and satisfactory manner. Key information in the draft LARP will be disclosed to the AHs in September Legal and Policy Framework. The legal and policy framework for compensation, resettlement and rehabilitation under the Project is defined by the relevant laws and regulations of the Government of Indonesia and the 2009 ADB Safeguard Policy Statement. Objectives of the Project Resettlement Policy are to avoid, if not minimize resettlement impacts, restore livelihoods and improve living standards of poor and vulnerable households. Entitlements. AHs and affected village governments will be provided compensation at replacement cost for Project affected assets. In addition, transportation support and rice subsistence allowance will be provided to those losing entire houses and kiosks. Severely affected and vulnerable AHs will likewise take part in an income restoration program that will be designed during LARP updating. Relocation and Rehabilitation Strategy. The DGH and district Land Acquisition Committee (LAC) will continue to ensure minimal disruption in the livelihood of the 31 relocating households and the 8 kiosk owners whose small stores are entirely affected. This commitment on the part of DGH and LAC has been demonstrated in the fact that although AHs in affected villages in the sub-districts of Klirong, Bulupesantren, Ambal, and Mirit (i.e., the rest of the areas traversed by the Tambkmulyo-Wawar Project road) have already received their compensation, some as early as 2006 and up to 2010, they continue to use the land already acquired by government for production. Per agreement with the LAC during consultations (sosialisasi) with them, the AHs will be provided advance notice about the start of land clearing in their villages. Since AHs in Puring Sub-district and in the village of Karanggadung, Petanahan Sub-district, will only get their compensation and allowances in the first half of 2012, DGH plans to start road construction from Mirit Sub-district. This will allow the AHs in Puring and Petanahan to continue using, and derive economic benefits from, their affected land for at least 1 more year. Civil works in Tambakmulyo-Wawar Road is expected to commence in Hence, households who got their compensation in will continue to benefit economically from land already acquired by the government for at least another year. Similarly, AHs in Puring and Petanahan that are affected by the partial or entire loss of structures, including kiosks, will have at least 1 year to rebuild a replacement of their dwellings and kiosks, in addition to being able to derive benefits from their affected productive lands, before road construction commences in their village. Resettlement Budget. The estimated cost of resettlement for the 4 affected villages in Puring Sub-district and the village of Karanggadung, including the cost for carrying out the corrective actions to bring resettlement in Karangrejo and Tegalretno to compliance is Rp32,664,539,141. This cost also includes the hiring of an external monitoring agency (EMA), the cost of which will be borne by the central office of DGH. The provincial

10 government of Central Java and the district government of Kebumen will share the cost of land acquisition and other entitlements. Institutional Arrangements. The DGH of the Ministry of Public Works is the Executing Agency of this Project, while the Satker (Work Force) of Road and Bridge Construction of Central Java is the project implementation unit (PIU). DGH will establish a project management unit (PMU) headed by a manager (PMU head) with experience in externally financed projects. PMU staff will be responsible for the day-to-day implementation of the Project and will be responsible for technical, safeguards, and financial concerns. With regard to the preparation, updating and implementation of the LARP, the PMU staff will work closely with the PIU and district LAC. The latter is mandated by Indonesian Government Regulation to handle land acquisition and resettlement. Implementation Schedule. The table below presents an indicative schedule of LARP preparation and implementation. PMU will not award civil works contracts until the District Regent (Bupati) confirms in writing that (i) payment of compensation has been fully disbursed to the AHs and that rehabilitation measures are in place as per the updated LARP agreed between DGH and ADB; (ii) already-compensated AHs have cleared the area in a timely manner; and (iii) the area is free from any encumbrances. Indicative Resettlement Schedule Activities Schedule LARP preparation August - September 2011 Distribution of Project information leaflet September/October 2011 ADB concurrence to the draft LARP October/November 2011 LARP updating December 2011 Submission to and ADB concurrence of updated LARP January 2012 Implementation of the approved updated LARP for 4 villages in Puring Sub-district and Karanggadung village in Petanahan Sub-district February December 2012 Implementation of the corrective action plan for the villages of Karangrejo and Tegalretno in Petanahan Sub-district January June 2012 Public meetings to schedule land clearing in each village starting from the sub-district of Mirit going towards Puring July 2012 June 2013 Internal monitoring (submission of quarterly reports) December 2011 June 2013 External Monitoring (submission of semi-annual M&E reports) February 2012 December 2013 Start of Civil Works Construction 2013 Monitoring and Reporting. PMU is the Project internal monitor and it will submit quarterly progress reports to ADB regarding LARP updating and implementation. DGH will hire an external monitor to do compliance review and assessment. The external monitor will submit semi-annual monitoring reports to PMU and ADB. All monitoring reports will be uploaded on the ADB website.

11 I. PROJECT DESCRIPTION A. Background 1. The Tambakmulyo-Wawar road section is one of 3 sections in Central Java that are being considered for inclusion in the proposed Regional Roads Development Project (RRDP). Tambakmulyo-Wawar section is located in Kebumen District, while the Wawar- Congot Purworejo road section and Giri Woyo-Duwet road sections are located in Purworejo and Wonogiri Districts, respectively (see Error! Not a valid bookmark self-reference. for the Project Location Map). These 3 road sections cross the southern seaboard areas of Central Java and form part of the South Java Corridor. Figure 1: Project Location Table 1: Road Sections in Central Java Road No. Road Section District Design Length Design Width of (km) Carriageway (m) Tambakmulyo-Wawar Kebumen Wawar-Congot Purworejo Giri Woyo-Duwet Wonogiri The plan to develop the road network in the southern side of Java, referred to as the South Java Corridor, has been around since 2004 as part of Government s medium-term plan to advance progress in less-developed regions, which include northern Kalimantan. The TA Consultant s Final Report mentioned that the road network in the South Java Corridor was incomplete with a number of road sections being unclassified as national highway, or constructed below national standards, or not classified at all, or not yet constructed (see Figure 2 for a map of the South Java Corridor). 3. Government had been acquiring (i.e., transfer of ownership of private and village lands following payment of compensation) the right-of-way (ROW) of various road sections, including those subsequently identified for inclusion in the proposed RRDP, even before 2007 when the TA commenced. The land for the first 24 km of the Tambakmulyo-Wawar road section had been acquired by the Government as early as Compensation was

12 completed in 2010 for the sub-districts of Mirit, Ambal, Bulupesantren, and Klirong. As part of the due diligence in March and April 2010, households interviewed confirmed that they already received payment for their land and assets and that they have been allowed by the Government to continue using the land that were already acquired from them until such time that the same is needed by the government. In July 2011 visit by ADB with DGH, it was noted that previous landowners are still utilizing the land for farming and that the trees have not yet been cut. It was confirmed by the Kebumen District that the previous landowners will continue to utilize the land for productive purposes and will be provided sufficient time to clear the land prior to civil works construction through socialization during project implementation. Figure 2: Southern Java Corridor B. Description of the Puring-Petanahan Road Segment 4. The Puring-Petanahan segment of the approximately 38.5 km long Tambakmulyo- Wawar road section starts from the location of the village office of Tambakmulyo at a crossing with a provincial road and heads to the east, crossing the villages of Sidoharjo, Waluyorejo, and Surorejan in the sub-district of Puring before entering the sub-district of Petanahan where the road traverses the villages of Karangrejo, Karanggadung, and Tegalretno. From Petanahan, the Tambakmulyo-Wawar continues through the sub-districts of Klirong, Bulupesantren, Ambal, and ends in the sub-district of Mirit. The villages traversed by the Puring-Petanahan segment are rural farming communities relying mainly on rain for irrigation. The topography of Tambakmulyo up to Karangrejo is flat, and the existing 3 ~ 5 m earthen roadway is mainly covered with gravel and rocks. The existing ROW is 7 m wide. The nearest river to the road is about 3 km away. Local residents get water for household use from dug wells and pumps. The aquifer is about 6 m from the ground surface. Main crops grown in the communities are yellow corn, chili, eggplant, and California papaya. Predominant trees and plants found close to the road are bamboo, coconut, jackfruit, acacia, mahogany, and banana. Also, concrete electric posts line the edge of the roadway. 5. The first kilometer or so of the 3 ~ 5 m roadway in Karanggadung is also flat and is paved with asphalt but in deteriorated condition. The vegetation in the area is similar to that of the earlier villages. However, near the end of Karanggadung up to the next village of

13 Tegalretno, the general area of the road is characterized by sand dunes, which is probably due to desertification. The sea is 3 km away. Every now and then the road skirts around settlements or sand quarries, or is reduced to size just big enough for farm carts. Sand quarrying is rampant in the locality, even in areas that will be traversed by the Project road. Notwithstanding the situation in Karanggadung and Tegalretno, the plants and trees thriving in those parts are similar to those in the other villages, including crops grown by the residents. Table 2: Villages Traversed by Tambakmulyo-Wawar Road Section Sub-district Village Remarks Wiromartan Lemburmartan Mirit Tlogopragoto Compensation provided in (6.267 km) Mirit Tlogodepok Mirit Petikusan Ambal (8.053 m) Bulupesantren (5.114 km)) Klirong (4.088 km) Petanahan (6.250 km) Puring (8.844 km) Sumberjati Kaibon Kaibon Petangkuran Ambal Resmi Kenoyojayan Entak C. Civil Works to be Undertaken Compensation provided in Brecong Setrojenar Compensation provided in Ayam Putih Tanggulangin Jogosimo Compensation provided in Tegalretno Compensation provided on 25 Aug 2011 Karanggadung Compensation scheduled for 2012 Karangrejo Compensation provided on 26 Aug 2011 Sidoharjo Compensation scheduled for 2012 Waluyorejo Compensation scheduled for 2012 Surorejan Compensation scheduled for 2012 Tambakmulyo Compensation scheduled for As in the other road sections in Central Java, the improvement of the Tambakmulyo- Wawar will involve widening of the carriageway into a 2-way road with a minimum carriageway of 6 m, plus a hard shoulder of 1 m and a ditch on each side of the carriageway. The carriageway will be paved with asphalt concrete. Moreover, for the entire Tambakmulyo- Wawar, the entire 30 m ROW will be acquired and cleared of all obstructions. D. Measures Adopted to Minimize Resettlement 7. The DGH erected ROW monuments throughout the entire length of the Tambakmulyo-Wawar road section as early as 2006, which probably explains why most of the houses along the road have been built outside the ROW. In locations where most of the houses are outside the ROW, the improved road will follow the existing alignment, while shifting of the road centerline or realignment of segments of the road will be resorted to in locations where many houses are inside the ROW, such as in Karangrejo and Karanggadung. In addition, payment of compensation and the relocation of AHs will be completed prior to the start of construction works. AHs will be allowed to make use of ROW land for production until construction works begin, the schedule of which will be discussed with the affected households in advance. Owners of entirely affected shops will be allowed to construct a replacement of their structures months before the existing ones are demolished.

14 E. Objectives of the LARP 8. This LARP has been prepared subsequent to the July 2011 ADB Review Mission primarily for the purpose of ensuring that land acquisition and resettlement in 4 villages in Puring Sub-district and in Karanggadung village in Petanahan Sub-district, where land acquisition has not yet been carried out, is done in a manner consistent with the laws of Indonesia and with the 2009 ADB Safeguard Policy Statement (SPS). Gaps and differences between applicable laws of the country and the SPS have been sorted out as discussed in detail in Chapter 5, Project Resettlement Policy. Moreover, in light of the fact that compensation was given in August to AHs in the villages of Tegalretno and Karangrejo in the sub-district of Petanahan, because it had earlier been scheduled by the local government, this LARP also looked into whether or not all the requirements of the ADB 2009 SPS have been met. Corrective actions, as needed, have been included in this new LARP. In addition, this LARP includes time-bound action to ensure that persons still in occupation of ROW land in other sub-districts and villages of Tambakmulyo-Wawar road section that have earlier been acquired between 2006 and 2010 are provided sufficient information and time to harvest their crops and trees. F. Parts of this Resettlement Planing Document 9. This resettlement planning document contains three parts. The first part, covering Chapter II Chapter X, contains the results of the inventory of losses for affected assets and the socioeconomic survey (SES) of affected households (AHs) in the four villages of Puring Sub-district and the village of Karanggadung in Petanahan Sub-district where detailed measurement survey (DMS) and payment of compensation have not yet been carried out. The results of the IOL and SES, in addition to the results of consultations with the AHs and local government authorities, are the principal bases for the preparation of this LARP. Said information will be validated during the updating of the LARP through the conduct of a detailed measurement survey (DMS) subsequent to the concurrence by DGH and ADB to this LARP. 10. The second part of this resettlement planning document is in Chapter XI and is devoted to the due diligence of the impacts survey done and payment of compensation given to AHs for affected assets in the villages of Karangrejo and Tegalretno. Corrective actions, including the cost for implementing said correctives actions, are provided in the second part of this document to make resettlement in the 2 villages compliant with the Project resettlement policy. 11. The third part of this resettlement planning document provides an initial estimate for carrying out resettlement in the 4 affected villages in Puring Sub-district and Kebumen Village, including the cost for implementing corrective actions to make resettlement in the villages of Karangrejo and Tegalretno compliant with the Project resettlement policy. 1 Data gathering for the new RP was done in the second half of August 2011 during which time the District Government of Kebumen delivered compensation to DPs in the 2 villages of the sub-district of Petanahan. Funds for compensation for the Karanggadung (in Petanahan Sub-district) and the 4 villages in Puring Subdistrict are not available until 2012.

15 Figure 3: ROW in Re-aligned segment of the Project road in Karangrejo 30 m wide ROW Figure 4: Beginning of Road Section Tambakmulyo Figure 5: Typical Road Section Figure 6: Interview with Residents in Surorejan Village (Puring Sub-district) Figure 7: Sandy Road in Karanggadung Village (Petanahan Sub-district)

16 Figure 8: Narrow Sandy Road in Tegalretno Village (Petanahan Sub-district) Figure 9: Roadside Quarrying in Tegalretno Village (Petanahan Sub-district) II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT A. Sources of Data on Project Impacts for the LARP 12. First source of data for the LARP is from the inventory of losses (IOL) conducted by DGH consultants in the last quarter of DGH, with assistance from consultants, prepared an RP 2 for the Puring-Petanahan segment of the Tambakmulyo-Wawar road section guided by the July 2010 Resettlement Framework agreed between the Government and ADB when the loan modality being considered for the proposed RRDP was still Multitranche Financing Facility (MFF). The DGH consultants conducted an IOL of structures, trees and crops on the existing alignment. 3 The DGH consultants, however, did not count the trees and crops found in segments of the road in Karanggadung where there are re-alignments and in swathes of ROW land along the existing alignment where there are no houses. Also, the socioeconomic survey conducted by the DGH consultants, which provides very basic household information, only covered households affected by the loss of structures. 13. Second source of information is the results of interviews conducted by ADB consultants of households affected by the loss of entire houses and a preliminary inventory of trees inside the ROW of 4 affected villages in Puring Sub-district and the village of Karanggadung. B. Cut-Off Date for Eligibility to Project Entitlements 14. There are no informal settlers affected by the Project in the sub-districts of Puring and Petanahan. The residents occupy their own land and structures, and they can do anything they want with their properties regardless of the Project until they are compensated for assets acquired by the Project. The residents have been advised, however, that only the assets identified during the DMS are to be compensated for. 4 Thus, for this LARP, the cut-of date for eligibility to Project entitlements coincide with the conduct of the DMS by the LAC in a particular village traversed by the Project road. Subsequent to the concurrence by DGH and ADB to the LARP, the Land Acquisition Committee (LAC) of Kebumen District will announce to the local residents of Puring and Petanahan Sub-districts the schedule of the 2 The RP prepared by DGH consultants had not been submitted to ADB for review and concurrence. 3 The BPN (National Land Agency) district office was responsible for the conduct of cadastral survey of affected lands. Data from the cadastral survey was used by the DGH consultants when they prepared the first RP. 4 The DMS in Karanggadung will have to be updated if payment of compensation for affected assets could not be given within 2011.

17 detailed measurement survey (DMS) in said sub-districts. The DMS is targeted to commence in the first week of December C. Compensation 15. Land valuation is based on assessment conducted by an independent appraiser hired by the LAC, while the final land compensation rate is based on negotiation between the LAC and the affected land owner by using the appraiser result as a reference. The valuation is based on a number of factors, which include information of recent land sales in the village, location of the property, productivity (for agricultural land) or attributes (residential/ commercial land), and type of legal document the occupants has for the land, and the Nilai Jual Obyek Pajak 5 (NJOP) or the declared taxable value of the land. Persons who possess Hak Milik (right of ownership) 6 over a piece of land, which is covered by a Sertifikat or title, are entitled to the full market value of the property. Equally recognized proof of ownership over a piece of land are customary rights, such as adat or ulayat or yasan 7, and these can be conveyed to other persons and used as security for loans, although the market value of land covered by such customary rights may not be as high as properties with a title. Persons with customary rights over their properties also hold surat pembayaran pajak terutang (SPPT) or letter of payable tax payment, as additional proof of recognition of their land rights. 16. Two things need to be emphasized in this LARP. All affected lands are generically classified as tanah darat on dry land primarily because lands in the entire Project road section are used both for production and residence. Secondly, while affected lands have already been compensated for and technically ownership of the same has been transferred to the government, the AHs continue to use the same for production, residence and commerce until such time that road construction activities commence in a particular village. This has been the case in the other sub-districts traversed by the Tambakmulyo-Wawar road section where compensation had been paid to the AHs in This practice has positive implications on the resettlement of AHs. 17. All AHs in the Puring-Petanahan road segment hold customary rights over their affected properties. During the public consultations conducted in Puring and Petanahan Subdistricts in August 2011, representatives of AHs and local officials claimed that the current market rates of land in the Project area range from Rp700,000 to Rp1,000,000 per ubin (equivalent to 14 m 2 ), or Rp50,000 to Rp71,000 per m 2. In 2010, the unit rates of land in Kebumen were reported to be between Rp60,000~75,000 for farmland and Rp66,000~90,000 for front yard of houses. In this LARP, the land rates quoted by representatives of AHs and local officials during the August 2011 consultations were used. 18. The unit costs for structures, trees, and crops are updated every year through a decree issued by the Bupati (District Regent). The Kebumen Bupati issued on 11 January 2011 Decree No. 29 setting the unit costs for structures, and Decree No. 10 on 14 January 2011 setting the unit costs of crops and trees (See Appendix 1 and Appendix 2 for a copy of Decree 29 and Decree 10). The unit costs for structures are based on prevailing market rates of construction materials and labor. When calculating compensation for structures, especially buildings, the LAC uses the unit costs provided in the decree per classification or type of construction materials used, including the number of floors. Following which, the LAC 5 NJOP in Puring is between Rp5,000~Rp10,000 per m 2, while in Petanahan, it is Rp5,000 per m 2. 6 This is the most complete form of individual land right (hak atas tanah) and possession of which has no time limit. The owner can sell or lease or use as security the right over the property. Hak milik right is only possible for Indonesian citizens. 7 These rights are part of the customary law that governed land ownership prior to the promulgation of the 1960 Basic Agrarian Law (BAL). Usually un-surveyed, un-registered and untitled, ownership over a piece of land under this set-up is based on community acceptance of boundaries and claims.

18 calculates in percentage the amount of materials that could be re-used (salvageable materials) in constructing a replacement building. The estimated value of salvageable materials is then deducted from the full replacement cost of the affected structure without the prior and informed consent of the AH. This practice is not consistent with the ADB policy that requires payment of compensation for acquired assets at full replacement cost. 19. There are 3 major categories of buildings in Bupati Decree No. 29 and each major category is broken into smaller categories with corresponding unit costs per square meter. There are 6 sub-categories of permanent structures, the most expensive of which has a unit cost of Rp1,204,000/m 2 while the least expensive has a unit cost of Rp437,000/m 2. Semipermanent structures have 4 sub-categories, with the most expensive having a unit cost of Rp350,000/m 2 and the least expensive having a unit cost of Rp134,000/m 2. Buildings of light or temporary materials (darurat) have 2 sub-categories, the first one having a unit cost of Rp93,000/m 2, while the second one having a unit cost of Rp54,000/m 2. For purposes of this LARP, the unit rates used for calculating compensation for permanent structures is Rp1,204,000/m 2 ; Rp350,000/m 2 for semi-permanent structures; and Rp93,000/m 2 for buildings made of temporary materials. 20. The unit costs for crops and trees are based on prevailing market rates. Trees are classified according to their size (i.e., large/big, medium, and small), which is linked to the age and productivity of the trees. D. Impacts Survey 21. Land. A total of 1,247 private plots of land in 4 villages of Puring Sub-district, in addition to Karanggadung village in Petanahan Sub-district, belonging to 1,214 AHs and with an aggregate area of 227,666 m 2 are inside the 30 m ROW and will be acquired. Plots of land along the Project road are invariably classified as agricultural/residential land with a unit cost of Rp56,000/m 2 on the average. Compensation for these plots of land, which does not include costs of transaction and amendment of land certificates, which will be borne by the Project, is estimated at Rp12,739,296,000. Table 3: Summary of Affected Private Lands No Village Sub-district Count of AHs Count of Plots Affected Land Compensation (m 2 ) (Rp56,000/ m 2 ) 1 Tambakmulyo Puring ,934 1,396,304,000 2 Surorejan Puring ,076 3,700,256,000 3 Waluyorejo Puring ,956 2,013,536,000 4 Sidoharjo Puring ,441 3,048,696,000 5 Karanggadung Petanahan ,259 2,590,504,000 Total 1, ,666 12,749,296, Village authorities (kantor desa) of Tambakmulyo, Surorejan, Waluyorejo, and Sidoharjo in Puring Sub-district, in addition to Karanggadung in Petanahan Sub-district, have 52 affected parcels of land (e.g., desa land and village road) that have to be acquired for the Project. With an aggregate area of 16,627 m 2 and a unit cost of Rp45,000/m 2, the estimated replacement cost of said parcels of land is Rp748,215,000.

19 Table 4: Summary of Affected Village Lands No Village Sub-district Count of Plots Affected Land Compensation (m 2 ) (Rp45,000/ m 2 ) 1 Tambakmulyo Puring Surorejan Puring 25 7, ,795,000 3 Waluyorejo Puring Sidoharjo Puring 17 4, ,175,000 5 Karanggadung Petanahan 4 2, ,010,000 Total 52 16, ,215, Houses. Fifteen AHs in the 4 affected villages of Puring and in Karanggadung village are affected by the partial 8 loss of dwellings that are made of permanent construction materials. With a combined affected floor area of 446 m 2 and at a unit cost of Rp1,204,000/m 2, the estimated replacement cost of the acquired sections of the structures is Rp536,984,000. Additionally, 2 AHs in the village of Tambakmulyo are affected by the partial impact on their house-and-stores that are made of permanent materials. With an aggregate affected floor area of 68 m 2, the compensation due to these 2 AHs is estimated to be Rp81,872,000. Table 5: Partially Affected Permanent Houses No Location Floor Area (m²) Compensation (Rp1,204,000/ m 2 ) Village Sub-district Total Affected 1 Tambakmulyo Puring ,140,000 2 Tambakmulyo Puring ,956,000 3 Surorejan Puring ,508,000 4 Surorejan Puring ,672,000 5 Surorejan Puring ,528,000 6 Surorejan Puring ,120,000 7 Surorejan Puring ,160,000 8 Waluyorejo Puring ,160,000 9 Waluyorejo Puring ,672, Waluyorejo Puring ,672, Waluyorejo Puring ,528, Waluyorejo Puring ,672, Sidoharjo Puring ,568, Sidoharjo Puring ,672, Karanggadung Petanahan ,956,000 Total ,984,000 Table 6: Partially Affected Permanent House-and-store No Location Floor Area (m²) Compensation (Rp1,204,000/ m 2 ) Village Sub-district Total Acquired 1 Tambakmulyo Puring ,712,000 2 Tambakmulyo Puring ,160,000 Total ,872, One AH in Surorejan village and another in Karanggadung village are affected by the partial impact on their houses that are made of semi-permanent construction materials. With a combined affected floor area of 80 m 2 and at a unit cost of Rp437,000/m 2, the replacement cost of the affection portion of the houses of these AHs is estimated to be Rp34,960, In Kebumen District, when the area affected by the Project is 50% or less of the building s total floor area, the building is deemed partially affected and still viable for continued use. Exception to this rule is when Project impact on the building, regardless of the percentage of the area affected vis-à-vis the structure s total floor area, will compromise the structural integrity of the same and renders it not safe for continued use.

20 Table 7: Partially Affected Semi-permanent Houses No Location Floor Area (m²) Compensation (Rp437,000/ m 2 ) Village Sub-district Total Affected 1 Surorejan Puring ,488,000 2 Karanggadung Petanahan ,472,000 Total ,960, One AH in Surorejan and another in Waluyorejo are affected by the partial impact on their dwellings that are made of temporary construction materials. With a combined affected floor area of 63 m 2 and at a unit cost of Rp93,000/m 2, the replacement cost of the affected portions of the houses of these 2 AHs is calculated to be Rp5,859,000. Table 8: Partially Affected Temporary Structures (Darurat) No Location Floor Area (m²) Compensation (Rp93,000/ m 2 ) Village Sub-district Total Affected 1 Surorejan Puring ,511,000 2 Waluyorejo Puring ,348,00 Total ,859, Nine AHs in 3 villages of Puring Sub-district in addition to another AH in Karanggadung are affected by the entire loss of their houses that are made of permanent construction materials. With an aggregate floor area of 1,165 m 2 and at a unit rate of Rp1,204,000/m 2, the replacement cost of the dwellings of these 10 AHs is estimated at Rp1,402,660,000. Additionally, 1 AH in the village of Surorejan is affected by the entire loss of its permanent house-and-store. With a floor area of 126 m 2, the replacement cost of this house-and-store is estimated to be Rp151,704,000. Table 9: Entirely Affected Permanent Houses No Location Floor Area (m²) Compensation (Rp1,204,000/ m 2 ) Village Sub-district Total Acquired 1 Surorejan Puring ,704,000 2 Surorejan Puring ,688,000 3 Surorejan Puring ,320,000 4 Surorejan Puring ,720,000 5 Surorejan Puring ,032,000 6 Waluyorejo Puring ,120,000 7 Waluyorejo Puring ,560,000 8 Sidoharjo Puring ,840,000 9 Sidoharjo Puring ,660, Karanggadung Petanahan ,016,000 Total ,402,660,000 Table 10: Entirely Affected Permanent House-and-store Location Floor Area (m²) Compensation (Rp1,204,000/ Village Sub-district Total Acquired m 2 ) Surorejan Puring ,704, Three AHs in Surorejan, 2 AHs in Waluyorejo, and 6 AHs in Karanggadung are affected by the entire loss of their semi-permanent houses. With an aggregate floor area of 691 m 2 and at a unit cost of Rp437,000/m 2, the replacement cost of the houses of these AHs is estimated to be Rp302,185,500.

21 Table 11: Entirely Affected Semi-permanent Houses No Location Floor Area (m²) Compensation (Rp437,000/ m 2 ) Village Sub-district Total Acquired 1 Surorejan Puring ,928,000 2 Surorejan Puring ,607,500 3 Surorejan Puring ,598,000 4 Waluyorejo Puring ,480,000 5 Waluyorejo Puring ,244,000 6 Karanggadung Petanahan ,740,000 7 Karanggadung Petanahan ,330,000 8 Karanggadung Petanahan ,330,000 9 Karanggadung Petanahan ,976, Karanggadung Petanahan ,976, Karanggadung Petanahan ,976,000 Total ,185, One AH each in Tambakmulyo and Surorejan are affected by the entire loss of their homes that are made of temporary construction materials. With an aggregate floor area of 168 m 2 and at a unit cost of Rp93,000/m 2, the replacement cost of the houses of these 2 AHs is calculated to be Rp15,624,000. Table 12: Entirely Affected Temporary Structures (Darurat) No Location Floor Area (m²) Compensation (Rp93,000/ m 2 ) Village Sub-district Total Acquired 1 Tambakmulyo Puring ,928,000 2 Surorejan Puring ,696,000 Total ,624, Independent Shops. One AH in Tambakmulyo is affected by the partial impact on its independent shop that is made of permanent construction materials. On the other hand, 1 AH each in Surorejan and Waluyorejo are affected by the entire loss of their permanent independent shops. With an aggregate affected floor area of 109 m 2 and at a unit cost of Rp1,204,000/m 2, the replacement cost of the affected permanent shops is estimated to be Rp131,326,000. Additionally, 1 AH in Surorejan is affected by the entire loss of its independent shop that is made of semi-permanent construction materials. The replacement cost of the 72 m 2 entirely affected semi-permanent shop of this AH is calculated to be Rp31,464,000 based on a unit cost of Rp437,000/m 2. Three AHs, all living in Surorejan, are affected by the entire loss of their independent shops that are made of temporary construction materials. With an aggregate floor area of 64 m 2 and at a unit cost of Rp93,000/m 2, the replacement cost of the 3 shops is estimated to be Rp5,952,000. Table 13: Affected Permanent Shops No Location Floor Area (m²) Compensation (Rp1,204,000/ m 2 ) Village Sub-district Total Acquired 1 Tambakmulyo Puring ,100,000 2 Surorejan Puring ,896,000 3 Waluyorejo Puring ,240,000 Total ,236,000 Table 14: Affected Semi-permanent Shop Location Floor Area (m²) Compensation (Rp437,000/ m 2 ) Village Sub-district Total Acquired Surorejan Puring ,464,000

22 Table 15: Affected Temporary Shop No Location Floor Area (m²) Compensation (Rp93,000/ m 2 ) Village Sub-district Total Acquired 1 Surorejan Puring ,232,000 2 Surorejan Puring ,232,000 3 Surorejan Puring ,488,000 Total ,952, Secondary Structures. Affected secondary structures of private households include terraces (porches), building foundation (with no superstructure), and a well. Nine AHs are affected by the entire or partial loss of terraces that are made of permanent construction materials. With an aggregate affected floor area of 171 m 2 and at a unit cost of Rp1,204,000/m 2, the replacement cost of said affected terraces is estimated at Rp205,884,000. One AH in Surorejan is affected by the partial impact on its terrace that is made of semi-permanent construction materials. The replacement cost of the 12 m 2 affected portion of the semi-permanent terrace of this AH is calculated to be Rp 5,244,000 based on a unit cost of Rp437,000/m One AH in Karanggadung is affected by the partial impact on a house foundation with no structure built on it. 9 The replacement cost of the 12 m 2 affected portion of the building foundation is estimated to be Rp1,192,000 at a unit cost of Rp74,500/m 2. Another AH in Waluyorejo is affected by the loss of its open well. The replacement cost of said well is estimated to be Rp10,836,000. Table 16: Affected Permanent Terraces No Location Floor Area (m²) Compensation (Rp1,204,000/ m 2 ) Village Sub-district Total Acquired 1 Tambakmulyo Puring ,080,000 2 Tambakmulyo Puring ,160,000 3 Waluyorejo Puring ,816,000 4 Waluyorejo Puring ,224,000 5 Waluyorejo Puring ,284,000 6 Waluyorejo Puring ,120,000 7 Sidoharjo Puring ,856,000 8 Karanggadung Petanahan ,672,000 9 Karanggadung Petanahan ,672,000 Total ,884,000 Table 17: Affected Semi-permanent Terrace Location Floor Area (m²) Compensation (Rp437,000/ Village Sub-district Total Acquired m 2 ) Surorejan Puring ,244,000 Table 18: Affected Building Foundation (no superstructure) Location Floor Area (m²) Compensation Village Sub-district Total Acquired (Rp74,500/ m 2 ) Karanggadung Petanahan ,192,000 9 Said building foundation must have been built shortly before the Kebumen District erected the monuments of the 30 m ROW. Subsequently, the DP built its building beyond the 30 m ROW.

23 Table 19: Affected Well Address Number of Concrete Rings Compensation Village Sub district Total Acquired (Rp1,204,000/ring) Waluyorejo Puring ,836, Public Structures and Facilities. The concrete village office of Tambakmulyo is partially affected. With an affected area of 15 m 2 and at a unit cost of Rp1,204,000/m 2, the replacement cost of the affected office is estimated at Rp18,060,000. One concrete building of the elementary school in Surorejan is also partially affected. The replacement cost of the 40 m 2 affected portion of this building is estimated to be Rp48,160,000 at a unit rate of Rp1,204,000/m 2. Table 20: Partially Affected Public Buildings No Location Floor Area (m²) Compensation (Rp1,204,000/ m 2 ) Village Sub-district Total Acquired 1 Tambakmulyo Puring ,060,000 2 Surorejan Puring ,160,000 Total ,220,000 66,220, It should be pointed out that there are 5 elementary schools that are located adjacent to the existing alignment of the Puring-Petanahan road segment. One of these elementary schools is in Karangrejo village. The District Office of Education and Sport has constructed in 2010 a replacement of the entire school away from the ROW for safety reasons, notwithstanding the fact that the old school was only partially affected. Edge of 30 m wide ROW Figure 10: New Elementary School in Karangrejo 34. The district government plans to build entire replacements of the 4 elementary schools located close to the present road in Puring Sub-district to help ensure the safety of school children. These schools will not be demolished, however, until the construction of their replacements has been completed. Nonetheless, for purposes of this LARP, the replacement cost of the affected concrete fences of these 4 elementary schools is presented below. With an aggregate length of 110 linear meters and at a unit cost of Rp113,500/lm, the replacement cost of the affected school fences is estimated to be Rp12,485,000.