Draft LARAP STUDY. (Land Acquisition and Resettlement Action Plan)

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized DIF <?<IBN<R<C~DHK<IB@HK<O MINISTRY OF PUBLIC WORK DIRECTORATE GENERAL OF HIGHWAY CONSTRUCTION AND MAINTENANCE SPECIFIC NON-VERTICAL TASK FORCE OF ROAD AND BRIDGE PLANNING AND SUPERVISION (P2JJ) PROVINCE OF WEST SUMATERA JL. Rasuna Said No. 85 A Padang 25114 Phone (0751) 70 51556 Fax (0751) 70 51556 Draft LARAP STUDY (Land Acquisition and Resettlement Action Plan) PADANGSAWAH-SIMPANGEMPAT (STRETCH 047.2) AND CONSTRUCTION OF AIA GADANG BRIDGE IN PASAMANT BARAT ROAD PRESERVATION PROJECT Pasaman and Pasaman Barat Regencies West Sumatra (Sumatra Barat) Province March 2011 RP1040 V9 Road and Bridge Improvement Project of West Sumatera Province i

TABLE OF CONTENTS I. INTRODUCTION AND PROJECT DESCRIPTION 1 II. SOCIAL ECONOMIC SURVEY AND ASSET INVENTORY 4 Result of socio-economic research 9 Public perception into the project 14 Compensation 15 III. COMPENSATION ARRANGEMENTS 15 IV. ACTION PLAN 21 Land acquisition 21 Procedures and process for land acquisition 22 Complaint handling procedures 22 Monitoring and reporting 25 Operational Schedule 25 Matrix of Action Plan 26 Annex 1: Detailed list of affected people and assets Annex 2: Sample form of documentation on socialization and consultation meeting Annex 3: Flow chart of grievance redressed mechanism Annex 4: Sample form of monthly monitoring report of LARAP implementation Road and Bridge Improvement Project of West Sumatera Province ii

LIST OF TABLES Table 1.1 Administration Site of Road Widening Plan for stretch 047.2 and Bridge 2 Construction Table 1.2 Technical Dimension of National Road Stretch Widening Plan for 3 Padangsawah - Simpangempat Table 2.1 Population on Study Area of Pasaman Regency (Condition on 2008) 4 Table 2.2 Resident s Main Profession (ten years above) in Ladangpanjang Village 4 (condition on 2008) Table 2.3 Compilation of Population in Study Area of Pasaman Barat Regency (condition 5 on 2008) Table 2.4 Main Profession Compilation of Nagari Residents (ten years above) 6 in Study Area of Pasaman Barat Regency (condition on 2008) Table 2.5 Questionnaire Distribution based on Study Area 8 Table 3.1 Governmental Standard Price based on Building Construction 16 Table 3.2 Market Price of Building based on Function and Construction 16 Table 3.3 Market Price of other Building under Dimension and Type of Construction 17 Table 3.4 Study Result of LARAP for Economic Plants 17 Table 3.5 Governmental Standard Price for Economic Plants 17 Table 3.6 Market Price (Estimation) for Economic Plants 18 Table 3.7 Cost Recapitulation of LARAP for National Road Improvement of 18 Padangsawah Simpangempat Link 047.2 Table 3.8 Compensation Fee Recapitulation for Road Widening of Pasangsawah 19 Simpangempat in Pasaman Regency Table 3.9 Compensation Fee of Resident s Building in Pasaman Regency 19 Table 3.10 Compensation Fee Calculation of other Resident s Building in Pasaman 19 Regency Table 3.11 Compensation Fee Recapitulation for Road Widening of Pasangsawah 20 Simpangempat in Pasaman Regency (Replace Its Table) Table 3.12 Compensation Fee for Resident s Building under Administrative Area in 20 Pasaman Barat Regency Table 3.13 Compensation Fee Calculation for other Resident s Building in Pasaman Barat 20 Regency Table 3.14 Compensation Fee for Resident s Economic Plants in Pasaman Barat Regency 21 Table 3.15 Handling cost of Nagari Market Area 21 Table 3.16 Action-Plan for Land Acquistion 26 Road Stretch Improvement of Padangsawah Simpangempat (Stretch 047.1) in Pasaman Regency Table 3.17 Action-Plan for Land Acquistion Road Stretch Improvement of Padangsawah Simpangempat (Stretch 047.1) and Construction of Aia gadang Bridge in Pasaman Barat Regency 29 Road and Bridge Improvement Project of West Sumatera Province iii

INTRODUCTION AND PROJECT DESCRIPTION 1. Background. The Indonesian Government, through the Ministry of Public Works, plans to implement a project of capacity improvement for the National Road segment of Padangsawah Simpangempat (Stretch 047.2) and the construction of the Aia Gadang Bridge (herein collectively referred to as the Project ), located in the District of Pasaman and District of Pasaman Barat, Province of West Sumatera. This project will be financed by a loan from the World Bank through its Western Indonesia National Road Improvement Project (WINRIP). The road segment falls within the Sumatra Central Corridor, which is an alternative road for distributing goods and services on Sumatra. 2. National road widening for the Project will be undertaken to enhance road performance and smooth transportation to and from Padang (Teluk Bayur Seaport). Widening activities will take place in the Right of Way alongside 4040, 693 KM from KM 134+200 till KM 174-893 from Padang City. New bridge construction will take place close to the current Aia Gadang Bridge, in accordance with Government Regulation Number 38/2004 on Roads. 3. Though widening will take place in Right of Way area, there will still be land acquisition activites for buildings, plants and other assets belonging to Project Affected Persons (PAPs). Meanwhile, bridge construction activities will require acquiring land belonging to local communities (ulayat). Acquisition activities will affect sidewalk traders and areas for vehicles to park on the road shoulder at Kinali and Tampuruang Market. These areas are a major area for traffic jams on Monday and Sunday respectively. Because acquisition activities activity will have an impact on the current socio-economic environment, according to Operational Guideline 4.12 of the World Bank, a Land Acquisition and Resettlement Action Plan (LARAP) is required. 4. LARAP activities will examine the current state of land, building and plant assets in the area. Using a participatory approach for local communities to provide their inputs on the Project, the authorities will develop a framework for acquisition activities needed for construction. The road widening activities between Padangsawah Simpangempat will not require resettlement. The result of a preliminary study on the construction results and effects on local communities will be made into the basis of a land acquisition process with the following purposes: Gather information on the social and economic conditions of Project Affected Persons (PAPs) whose land or other assets are affected by the project, and to determine the aspirations of local inhabitants regarding the Project as well as their requested compensation for assets affected by the Project or land acquisition; Prepare policy alternatives for land acquisition and resettlement toward PAPs; Prepare a workplan for land acquisition and resettlement as guidance as well as planning efforts for the land acquisition and resettlement process for PAPs; Propose a market restructuring pattern for Pasar Bawan according to the aspirations of local communities, under the assumption that road widening will be able to enhance road performance without causing serious social issues. 5. Project Location and Description. This Project along the West-Track Trans Sumatra along 40,693 KM is intended to improve road performance and ease transportation routes to and from Padang (Teluk Bayur Seaport). Administratively this activity lies in two (2) regencies and four (4) sub-districts that include one village-level unit (Nagari) as noted in Table 1.1. A location map of the Project is included in Figure 1.1. Road and Bridge Improvement Project of West Sumatera Province 1

Table 1.1 Administration Site of Road Widening Plan for stretch 047.2 and Bridge Construction No. REGENCY/ SUB-DISTRICT NAGARI REMARK A. REGENCY OF PASAMAN 1. Subdistrict of III Nagari Ladang Panjang Link Road 047.2 B. REGENCY OF PASAMAN BARAT 1. Subdistrict of Kinali Kinali Link Road 047.2 2. Subdistrict of Luhak Nan Duo Koto Baru Link Road 047.2 3. Subdistrict of Pasaman Lingkuang Aua Link Road 047.2 Aia Gadang Bridge of Aia Gadang Figure 1.1 Location Map of the Project Setment 6. Stretch 047.2 starts in Padangsawah, Nagari Ladang Panjang, Regency of Pasaman and ends in Simpangempat, Nagari Lingkuang, Regency of Pasaman Barat. This represents a distance from KM 134+200 to KM 174+893 from Padang City. If reviewed from its administration area, then only 2,200 Km of this road stretch lies within the Pasaman Regency, namely from KM 134+200 to KM 136+400, and along 38,493 Km are within the Pasaman Barat Regency from KM 136+400 till KM 174+893. Meanwhile, construction of Aia Gadang Bridge will begin from KM 284+062 to KM 284+424 from Padang City. 7. As noted above, market facilities in Kinali and Tampuruang markets fall adjacent to the roadside. On market day once in a week, namely on Monday and Sunday respectively, traffic jams are frequent as a result of market spill over on the roadside and also because of parked vehicles. There are frequent efforts to better manage the space used by traders but these activities have not been completely successful. Figure 1.2 Images of Pasa Kinali and Pasar Tampuruang Traffic Conditions Road and Bridge Improvement Project of West Sumatera Province 2

8. Technical aspects. Based on a Detailed Engineering Design (DED) study, a road widening project will enlarge the road by 7m of carriage way, complete with a road shoulder and drainage channel. Further technical dimensions of the widening plan are presented in Table 1.2 below. The Aia Gadang Bridge will be constructed with the existing bridge, with a length of 100 m and a width of 9m. This section of the Project will also include improvements to the two-track bridge. Table 1.2. Technical Dimension of Padangsawah Simpangempat Sub-Project No. Planning Unit Dimension 1. Width of Road Surface meter 7,00 2. Width of Road Stretch (Left and Right) meter 4,00 3. Width of Drainage (Left and Right) meter 1,00 4. Hardening Normal Inclination % 2,00 5. Road Shoulder Inclination % 4,00 Source: P2JJ Province of West Sumatera, 2010 9. Process and Methodology. The identification of affected assets belonging to either community groups, corporations or the state was conducted through a field study by considering its position in relation to the existing Right of Way. Asset recording in Right of Way is undertaken for futher examination. Research on public assets will be conducted through enumeration by considering the following issues: People s Assets. Public buildings are distinguished by whether they are permanent, semipermanent or non-permanent; their function as a house or business place; and their location on the roadside in relation to Padang City. Other Buildings are identified by considering the kinds of terrace, fences, culvert and decker, land limit foundations and other assets. The economic value of plants and other assets were also considered by calculating numbers, types and location. The types of plants included Palm, Chocolate, Coconut, Areca, Teak and other Fruit plants such as Mango, Guava, and Durian. Public Assets. Some public facilities belong to the government or businesses. These include electric and telephone poles, an underground cable network, and a clean water pipeline. A survey recorded the numbers of these assets and their sites. The economic activities of sidewalk traders and persons parking on the roadside close to the Kinali and Tampuruang markets were also scrutinized in order to examine the potential impact of the Project on their physical space. There were also focus group discussions (FGD) with participants from Government (staff of Regency, Sub-District, and Village-level governments, public figures and community leaders, and academic and non-governmental organizations. Finally, there was a free interview (spotcheck) with selected respondents. 10. Social Data Research. The LARAP study is a descriptive field research exercise to obtain information regarding the social-economic conditions of the communities around the Project site. The study isneeded to obtain information on public opinion towards the planned road enlargement of the National Road from Padangsawah to Simpangempat as well as the construction of the Aia Gadang Bridge in Pasaman and Pasaman Barat Regencies. 11. The research will use survey research methods, wherein information is compiled from asset owning respondents affected by the widening of the roads and construction of the bridge, as well as sidewalk traders in Kinali and Tampuruang markets. Questionnaires were provided that obtained information regarding aspects of community life that will be affected by the planned Project activities. Four major aspects to be revealed by the study are: Characteristics or conditions of local people s socio-economics aspect; Socio-economic environment of the community; Social knowledge of the Project plans; Road and Bridge Improvement Project of West Sumatera Province 3

Public perception of the Project plans; 12. Besides the primary data to be obtained above, the LARAP also drew on secondary data from relevant sources such as the Central Bureau of Statistics (BPS) at the Regency level and various governmental agencies within the Regency administration. This secondary data focused on the socioeconomic and cultural profiles of the affected communities, laws and regulations governing the price assessment of affected goods, as well as models for compensation payment mechanisms. All data and results were used for the purposes of LARAP. These data can be used at a later data by the Land Acquisition Committee (LAC) as part of a more detailed database in order to prepare the land acquisition process and compensation payments. SOCIAL ECONOMIC SURVEY AND ASSET INVENTORY 13. Identification of Project Affected Persons and Assets. The administrative territory applicable to this LARAP falls within 2 (two) regencies and 4 (four) sub-districts: 1 (one) sub-district in Pasaman Regency, namely Sub-district III Nagari, and 3 (three) sub-districts in Pasaman Barat Regency namely Kinali, Luhak Nan Duo and Pasaman. Each sub-district includes one Nagari (same level as a Village unit) repectively Nagari Ladang Padanjang in Pasaman Regency and Nagari Kinali, Koto Baru and Lingkuang Aus in Pasaman Barat Regency. Meanwhile, the construction of Aia Gadang Bridge lies in Nagari Aia Gadang, Sub-district of Pasaman, and Regency of Pasaman Barat. 14. Land in these areas is mainly used for plantation areas of oil-palm, cocoa, corn and other plant products. In the subdistricts of Kinali and Tampuruang, there are markets once a week, Monday at Kinali and Sunday at Tampuruang. There are often traffic jams as a result of economic activity spill over and parked vehicles. Pasaman Regency 15. Population characteristics. The 2008 recorded population in Ladangpanjang was 10,434 people, consisting of 2,613 family units (Kelompok Keluarga, or KK), as indicated in Table 2.1. Population density provides a picture of the number of inhabitants per km 2 within nagari, in this case the lowest administrative level. Based on this administrative boundary of approximately 62.16km 2, the population density of Nagari Ladangpanjang is 168 people/km 2. This district lies at a T-intersection between three regional government centers: Lubukbasung in Agam, Simpangempat in Pasaman Barat and Lubuksikaping in Pasaman. No. Table 2.1 Population Statistics for Pasaman Regency (2008) Land General Data on Demography Area Study mass Man Woman Total Numbers (km 2 ) (people) (people) (people) of KK 1. Sub-district of Tigo Nagari a. Nagari Ladang Panjang 62,16 5.289 5.145 10.434 2.613 168 Source: Subdistrict in Year Number 2008, (processed from respective areas). Density (people /km 2 ) 16. Residents livelihood along the Project area is dominated by agricultural activities, which in this case includes plantations sustained by industrial business and plantation crop processing. This way is also seen from financial sector, Company s Leasing and Service and other services that has close-relationship with plantation sector, such as banking, business cooperative, heavy equipment rental and other plantation production utilities. Table 2.2 Residents Main Profession (10 Year Above) in Nagari Ladangpanjang (2008) Road and Bridge Improvement Project of West Sumatera Province 4

No. Main Profession Total (Life) Remark 1 Agriculture 7.653 2 Excavation Mining 95 3 Processing Industry 134 4 Building 41 5 Trading, Hotel & Restaurant 490 6 Transportation & Communication 111 7 Finance, Rental & Service 416 8 Services 323 9 Other 564 Total 9.427 Source: Sub-district in Year Number 2009, (processed from respective areas) 17. Land-use Patterns and Ownership. Land use in Pasaman Regency depends on its existing natural and human resource potential, as well as the area s topography, geomorphology, and the local community s unique social cultural characteristics and culture. The Project s location lies at a site developed for a plantation business and has high levels of productivity. A large portion of the surrounding area has previously been used for plantation activities. Based on a district-level survey, almost the entire area is used by the surrounding community, either by local residents, non-resident cooperatives, or by agricultural investors. Land ownership falls mainly with the Ulayat Kaum and Ulayat Nagari, belonging mainly to certified companies and individuals. This indicates that in general, land ownership characteristics in Minangkabau are closely tied to local development undertaken by large plantation companies. 18. Socio-cultural characteristics. The community structure of the local population is dominated by the Minangkabau ethnicity, followed by members of the Mandailing, Javanese, Nias and other ethnicities. Although there is a dominant ethnic group in terms of numbers of residents, patterns of interaction suggest relatively harmonious relations. Instead, social relations are dominated by residents groupings in agricultural cooperatives and other social community groups. Pasaman Barat Regency 19. Population characteristics. The population in the Nagari (village level) adjacent to the outlined road area is 111,056 persons and 23,520 households. The population spread follows the administrative boundaries provided in Table 2.3. There are more male residents (56,595) than female residents (56,461). The majority of the population is in Kenagarian Kinali, Subdistrict of Kimali (25.134 people), whereas the lowest population are 10.434 people is in Kenagarian Aia Gadang in Pasaman Regency. There are no significant populations of indigenous people present in this area. No. Area Study Table 2.3 Compilation of Population in Area Study (Condition on 2008) Land General Data of Demography mass Man Woman Total Number (km 2 ) (people) (people) (people) s of KK 1. Subdistrict of Kinali a. Nagari Kinali 365,57 25.314 24.158 49.472 8.663 135 2. Subdistrict of Luhak Nan Duo a. Nagari Koto Baru 211,10 12.785 12.349 25.134 6.041 119 3. Subdistrict of Pasaman a. Nagari Lingkuang Aua 158,54 13.292 12.724 26.016 6.360 164 b. Nagari Aia Gadang 130.44 5.204 5.230 10.434 2.456 80 Source : Subdistrict in Year Number 2009, (processed from respective areas) Density (people /km 2 ) 20. Population density. Population density provides a picture of the number of inhabitants per km 2 within nagari, in this case the lowest administrative level. Based on the administrative boundaries Road and Bridge Improvement Project of West Sumatera Province 5

intersected by the Project areas reaching 735,210 km 2, the population density range is between 80 164 people per-km 2 with an average density of 151 people/km 2. The most crowded area (164 people per km 2 ) of residents is in Kenagarian Aua, Subdistrict of Luhak Nan Dua and the lowest is in Kenagarian Aia Gadang, Subdistrict of Pasaman, with approximately namely around 80 people per km 2. 21. Economic characteristics. Residents livelihood along the enhanced road stretch is detailed in Table 2.4. Residents are mainly engaged in agricultural activities, in this case mainly large plantatations sutained by industrial business of plantation crop processing. These employment patterns are also seen in the financial sector, including leasing services and other services that have close relationships with the plantation sector, such as banking, business cooperatives, heavy equipment rentals and other plantation production utilities. Table 2.4 Main Profession Compilation of Nagari Residents (ten years above) in Study Area (2008) Sub-district No. Main Profession Luhak Amount Kinali Pasaman Nan 2 1 Agriculture 14.880 7.559 18.379 40.818 2 Excavation Mining 202 61 70 333 3 Processing Industry 452 111 320 883 4 Electricity and Clean Water 5 1 16 22 5 Building 71 83 834 988 6 Trading, Hotel & Restaurant 2.027 803 805 3.635 7 Transportation & Communication 115 32 666 813 8 Finance, Rental & Service 1.516 381 710 2.607 9 Services 2.425 729 522 3.676 10 Other 30 21 8 59 Total 21.723 9.781 22.330 53.834 Source: Subdistrict in Year Number 2009, (processed from respective areas) 22. Utilization Pattern and Land Ownership. Land use patterns in Pasaman Barat regency are similar to those in Pasaman regency. The Project site falls in areas developed for the plantation business and with high productivity value. Nearly the whole land area has been utilized by local residents, non-resident cooperative members, or plantation investors. Land ownership status comprises Ulayat Kaum and Ulayat Nagari, and belongs to certified companies or individuals. 23. Socio-Cultural Characteristics. Similar to Pasaman Regency, the community structure of the local population is dominated by the Minangkabau ethnicity, followed by members of the Mandailing, Javanese, Nias and other ethnicities. Although there is a dominant ethnic group in terms of numbers of residents, patterns of interaction suggest relatively harmonious relations. Instead, social relations are dominated by residents groupings in agricultural cooperatives and other social community groups. Identification results of field data 24. Field research used a questionnaire survey approach after socialization efforts were completed. This was complemented with open-ended interviews and focus group discussions. These methods were used to obtain and identify all lands, buildings and plants with economic value within the Right of Way of the Project site and the bridge construction area. The census survey was conducted on 16-26 November 2010. This date will be the cut of date to record affected persons in the project area who are entitled to compensation, resettlement assistance and livelihood restoration assistance. In case there is a time gap between the LARAP approval and the implementation of the WINRIP project or sub-project under WNRIP, the Land Acquisition Committee will do verification of the current situation based on the list of affected people and assets from the survey. Road and Bridge Improvement Project of West Sumatera Province 6

25. Assets owned by PAPs within the Right of Way on Section 047.2 and the brige construction in the second sub-district are spread throughout sixty two (62) persons. These assets are categorized in the form of land with landmasses of 320 m 2 owned by 2 people; houses or business buildings facing the Right of Way owned by 42 people; and other buildings such as fences, culverts or house terraces and other plants with economic value belonging to 13 people. Description of respective assets under the administration area is explained below. A detailed data table on PAPs is included in Annex 1, including appendix 1a-1e. 26. Project-Affected Assets in Pasaman Regency. Based on result of field data processing, three units are affected by the Project: 1 unit of shack used as garage; 1 unit semipermanent used as small-shop; 1 semi-permanent unit used as house. 27. Both building in the Right of Way will be affected by between 75% - 100% of its landmass. Therefore, they should be dismantled and be replaced by new structures in the lands of the respective land owners close to or behind the Right of Way being used. Other assets affected are terrace of one house and 1 palm-tree in the Right of Way. 28. Project-Affected Assets in Pasaman Barat Regency. Land. Construction of the Aia Gadang bridge will require land belonging to neighboring communities, where currently there are two buildings standing. The Project will require at leas 320m 2 of land belonging to 2 affected people on which had erected 2 units of building and need to be displaced. The status of the affected land is communal land but already acknowledged as private ownership (such as girik). The remaining lands are still large. The 2 affected people will rebuild their replacement building on the remaining land. Building. Based on the results of data management, widening of the road of the Project will affect 37 building units and for the bridge construction 2 units will be affected. A description of the buildings affected by the Project includes: i. Twenty five (25) shacks, of which twenty four are used four businesses and 1 unit is a residence; ii. Ten (10) semipermanent units used for business; iii. Four (4) permanent units, 2 of which are houses and the rest are small-shops. As many 25 shack units and 8 semipermanent buildings in the Project s Right of Way are affected by more than 75% till 100% of their landmass, meaning that they must be dismantled. They will be relocated into their own land close to or adjacent to the Project. 1 semipermanent building and 2 permanent buildings will be affected by the Project s land acquisition. Meanwhile 2 units of permanent buildings located in communal land (Ulayat) that has traditional status due to bridge construction should be dismantled because they will be affected by more than 75 % of their landmass, meaning that the owner should move. Nevertheless because the owners are members of the Ulayat, these buildings will be moved to the closest ulayat space. Following the results of the research, they are asking for compensation in the form of cash money following a subsequent agreement. Other Buildings in the Right of Way. Observation result and field data found that 6 other building sites belong to residents are built in the Project s Right of Way. Those buildings are in form of culvert and fence as explained below: i. Culverts in 2 sites; ii. Fences in 4 sites Economic Plants in Right of Way. Plants with discernible economic value that lay in the Project s Right of Way number as follows: 34 trees owned by 12 Households, consisting of Palm, Cocoa, Coconut, Areca and other fruit trees such as Mango, Rambutan (Nephelium lappaceum), and Jackfruit. Details include: i. Palm 17 stems ii. Cocoa 12 stems iii. Areca 5 stems Road and Bridge Improvement Project of West Sumatera Province 7

Government and Corporate-Owned Assets. Public and corporate-owned asset affected by the road widening include electric and telephone poles, cable-line of underground optical-fibre and PDAM network in the Simpangempat area. 29. Kinali and Tampuruang Market. Kinali Market, as well as Bawan Market on Stretch 047.1 are forms of Nagari Markets that are open once a week on Mondays, while Tampuruang Market open every Sunday. On other days, a portion of the shops and food stalls are open but only serve the adjacent community and no sidewalk traders present. The shops and food stalls in the market are all outside of the Project s Right of Way, though on market days to becomes very crowded and a number of sidewalk traders spill into the street and cause traffic to worsen. These conditions are aggravated by unorganized parking. The Administration of Nagari Kinali has tried to better manage this situation but their efforts have been unsuccessful. Total sidewalk traders in Kinali Market occupying ROW and should be moved, based on data from Nagari, will be 15 persons, whereas side walk traders using road rollen-empty land between building and border of ROW, are around 10 persons. The numbers every week vary. This condition is the same with Tampuruang Market. Sidewalk traders on the road shoulder generally sell daily household needs such as vegetables, fruits, dried fish, and other needs like kitchen tools and finished clothes. Particularly traders of agricultural crops make transactions if they get products from farmers. This LARAP s study succeeds to interview 7 respondent side walk traders in Kinali Market, consisting of 4 occupy the road shoulder and 3 are in the road rollen, and 11 respondents in Tampuruang Market (9 occupying road shoulder and two are selling in the road rollen). Nevertheless, considering both locations are also in the widened road stretch, then these sidewalk traders are affecting arrangements. 30. Questionnaire: Project-Affected Asset. A study conducted from 16 18 November 2010 in both regencies showed that as many as 60 people (96.77% of the total respondents) will be affected across 4 Sub-districts and 4 Nagari as explained in next table. Data in Table 2.5 shows that thet rate of respondents in Nagari Kinali, Subdistrict of Kinali, describes that many residents erect the building or its eqipments, or cultivate economic plant in right of way. This way is caused by their ignorance on the function and ownership of right of way, and lack of supervision from relevant parties. 31. Questionnaire: Sidewalk Trader of Kinali and Tampuruang Markets. Total respondents of sidewalk traders in both markets interviewed upon research conducted on Sunday and Monday at January 16 and 17 are as many 18 people, 7 people in Kinali and 11 people in Tampuruang respectively include those selling in road-rollen and road shoulder. This amount represents for those affected widening impact. No. Study Area Table 2.5 Questionnaire Distribution based on Area Study Landmass (km 2 ) Total (Life) Resident Head of Family Respondent (KK) Road and Bridge Improvement Project of West Sumatera Province 8 Total Percentag e Remark A. Regency of Pasaman 1. Sub-district of III Nagari Nagari Ladang Panjang 62,16 10.434 2.613 5 0,191 100% PAP Sub-Total 62,16 10.434 2.613 5 0,191 B. Regency of Pasaman Barat 1. Sub-district of Kinali a. Nagari Kinali 365,57 49.472 8.663 49 0,566 100% PAP 2. Sub-district of Luhak Nan Duo a. Nagari Koto Baru 211,10 25.134 6.041 6 0,099 100% PAP 3. Sub-district of Pasaman a. Nagari Lingkuang Aua 158,54 26.016 6.360 - - b. Nagari Aia Gadang 130.44 10.434 2.456 2 0,081 100% PAP Sub-Total 735,21 111056 23.520 57 0,0242

Total 797,37 121.490 26.133 62 0,237 Source : Subdistrict in Year Number 2009, (processed) and Field Research 2010 RESULT OF SOCIO-ECONOMIC RESEARCH 32. Main Occupation of PAPs in Regency of Pasaman. One of the 5 respondents whose assets are affected by the Project, 2 are working as farmers, two are in service sector and one is a trader. The socioeconomic condition of respondents can be seen from their respective jobs. There were 57 respondents in 3 nagaris in 3 sub-districts interviewed for theis research as demonstrated in Tables 2.1 and 2.2. This is the same amount (100%) as the number of households affected by acquisition for both buildings and land. Of all respondents, most are employed as farmers (61.4%) and traders (19.3%). Figure 2.1. Diagram of Respondent Based on Profession in Pasaman Regency Based on main job Unanswered Service Trader Farmer Figure 2.2. Diagram of Respondent based on Profession in Pasaman Barat Regency Respondent Based on main is jobbased on Main Profession Unanswered Farmer Worker Service Ojek/Driver Trader Private Employee Farmer Public Servant/TNI/Polri 33. Income Level of PAPs in Regency of Pasaman. Of the 5 respondents who were interviewed regarding their income level, 1 said that he earned more than IDR 1.500.100 per month and 3 other people earned between Rp 500.000.- till IDR1.000.000,- per month. This is shown in Figure 2.3 Beyond that, 2 respondents have additional income between IDR 300,000 and 500,000/month and 1 respondent earns more than IDR 800,000 per month. Meanwhile 2 respondents did not provide answers. Figure 2.3 Diagram of Respondent s Income in Pasaman Regency Based on income of main job Unanswered Month Month Road and Bridge Improvement Project of West Sumatera Province 9

Figure 2.4 Diagram of Respondents Extra Income in Pasaman Regency Based on additional employment Unanswered Month Month 34. Income Levels of PAPs in Regency of Pasaman Barat. From 57 respondents who were asked their income levels, 24 respondents say their income is between Rp 500.000.- till IDR1.000.000 per month and 16 other respondents earn more than Rp 1.500.000.- per month. Figure 2.5 Diagram of Respondent s Income in Pasaman Barat Regency Unanswered Month Month Month 35. Respondents income in this regency is relatively greater than other research area. Respondents also still have extra-income from other business. 12 respondents earn extra income more than IDR 800.000 per month and 11 respondent say that they have extra-income among Rp 500.000 till IDR 800.000,- per month as seen in this diagram below. Figure 2.6 Diagram of Respondent s Extra-Income in Regency of Pasaman Barat Respondent is based on Part-time Profession Income Unanswered Month Month None Month Month 36. Number of family members in PAPs in Regency of Pasaman. Two respondents have between 7 9 family members, and 2 respondents have 4 6 family members. The smallest amount was 1 respondent who had 4 family members. Figure 2.7 Diagram of Respondent is based on Total Family Number in Pasaman Respondent of Family Member that becomes commitment Unanswered Persons Persons Road and Bridge Improvement Persons Project of West Sumatera Province 10

37. Number of family members in PAPs in Regency of Pasaman Barat. Respondents in this regency have small family member (31,58%) to middle (57,89%) with total family member among 4 6 persons per family. Figure 2.8 Diagram of Respondents based on Total Family Member in Pasaman Barat Respondent of Family Member that becomes commitment Unanswered Persons Persons 38. Educational Level Persons of PAPs in Regency of Pasaman. Average respondents have educational levels of Elementary School till Senior High School Graduates. Two of five respondents have educational levels of Senior High School graduate. Meanwhile educational level of respondents, 4 and 5 are Senior High School graduate. Figure 2.9. Diagram of Respondent based on Education in Regency Pasaman Educational Level Unanswered Elementary School graduate Senior High School graduate Junior High School graduate 39. Educational Level of PAPs in Regency of Pasaman Barat. Average respondents in this location are relatively higher than peripheral area namely 42, 11% have educational level of Senior High School graduate and 35,09% have educational level of Junior High School graduate as presented in the following diagram. Figure 2.10 Diagram of Respondent based on Educational Level in Regency of Pasaman Barat Respondents based on Educational Level Unanswered Academic graduate Elementary School graduate Senior High School graduate Junior High School graduate 40. Expected impact of Project on Economic Activities in Regency of Pasaman. Road widening activity is perceived will impact into comprehensive soci-economic life in society. But during implementation of its construction, 3 of 5 respondnets feel their economic business will be interrupted. Figure 2.11 Diagram of Project Influence into Economics in Regency of Pasaman Does implementation of road construction interferes with your economic/business activity? Unanswered No Road and Bridge Improvement Project Yes of West Sumatera Province 11

41. Expected impact of Project on Economic Activities in Regency of Pasaman Barat. It s only 10,33% respondents stating that activity implementation is not interfere with public economic activity, whereas 75.44 % state they are interrupted. Figure 2.12 Diagram of Project Influence into Economics in Regency of Pasaman Barat Does implementation of road construction interferes with your economic/business activity? Unanswered No Yes 42. Income level of Affected Sidewalk Traders in Kinali and Tampuruang Markets. From 7 respondents of sidewalk trader of Kinali Market who probed on their income level, only 1 person has low income from IDR 500.000 per month, whereas 6 other persons, respectively 2 persons have income among IDR 500.000 till IDR 1.000.000, among IDR 1.000.000 till IDR 1.500.000 and above IDR 1.500.000 monthly as presented below. Figure 2.13 Diagram of Sidewalk Respondent s Income in Kinali Market Respondents based on selling income month month month month 43. Reviewed from total of family number, then sidewalk respondents in Kinali Market average are middle and small family with total of small family member in 4 persons and with family member 4 6 persons as the following graph. Figure 2.14 Diagram of Respondent based on Total of Trader s Family Member in Kinali Market Respondent of Family Member that becomes commitment persons persons 44. Income level of sidewalk traders in Tampuruang Market shows a nearly apportionment, either for the lowest Rp 500.000 monthly or for the higher than IDR 1.500.000 monthly. Figure 2.15 Diagram of Sidewalk Respondent s Income in Tampuruang Market Respondents based on selling income month month month month 45. From eleventh respondents, only one is big family, whereas 7 other people are small family with number of family member 4 people. Road and Bridge Improvement Project of West Sumatera Province 12

Figure 2.16. Diagram of Respondent based on Total of Trader s Family Member in Tampurang Market Respondent of Family Member that becomes commitment people people people 46. Educational level of sidewalk traders. Average respondents of sidewalk traders in Kinali Market have educational level of Junior High School and Senior High School Graduates. Respectively 42,86 %, meanwhile in Tampurang Market are dominated by Junior High School and Elementary School Graduates. These educational levels are influential to one s insight and mind-set and result of interview, questionnaires filling and response to the project. Figure 2.17 Diagram of Responden s Educational Level in Kinali Market Educational Level Elementary School Graduate Senior High School Graduate Junior High School Graduate Figure 2.18 Diagram of Responden s Educational Level in Tampuruang Market Educational Level Unanswered Elementary School Graduate Senior High School Graduate Junior High School Graduate Not graduate Elementary School 47. Perception of sidewalk traders on Project. Networking of trader s perception is necessary done before beginning of widening activity, in order that known how many are residents supporting or rejecting this activity. Result of research indicates that all respondents in both markets say to agree and very agree. No respondents disagreeing or rejecting road widening. Figure 2.19 Diagram of Trader s Perception in Kinali Market concerning Activity Plan How about your opinion into widening plan of this road? Very agree agree Figure 2.20 Diagram of Trader s Perception in Tampuruang Market concerning Activity Plan How about your opinion into widening plan of this road? Very agree agree 48. In other side, traders highly know that consequence of this widening will interfere with their existence in bith markets. But based on questionnares, it seems that 5 of 7 traders in Kinali Market and 8 of 11 traders in Tampuruang Market are ready to be arranged and relocated in location offered by government, namely pertinent market site. Road and Bridge Improvement Project of West Sumatera Province 13

Figure 2.21 Diagram of Sidewalk Traders Response in Kinali Market Concerning Market Arrangement In case your selling place is affected to road construction, where do you move? Move into other site that self-sought near to original place Move into other site offered by government Figure 2.22 Diagram of Sidewalk Traders Response in Tampuruang Market Concerning Market Arrangement In case your selling place is affected to road construction, where do you move? Move into other site that self-sought near to original place Move into other site offered by government Public perceptions of the project 49. Regency of Pasaman. Result of questionnaire in Pasaman indicates that 60% of PAPs feel that their economic activities are interrupted, but 80% agree with the widening plan. 1 respondent did not provide an opinion. Figure 2.23. Diagram of Residents Perception concerning Activity Implementation In Regency of Pasaman Does implementation of road construction interfere with your economic/business activity? Unanswered No Yes Figure 2.24 Diagram of Residents Attitude concerning Activity Implementation In Regency of Pasaman How about your opinion into widening plan of this road? Unanswered Agree 50. Regency of Pasaman Barat. 74,55 % of respondents in Regency of Pasaman indicated that their economic activities would be interrupted during construction, but all agree or highly agree that the widening should take place. 2 respondents did not provide opnions. Road and Bridge Improvement Project of West Sumatera Province 14

Figure 2.25 Diagram of Resident s Perception about Activity Implementation in Regency of Pasaman Barat Does implementation of road construction interfere with your economic/business activity? Unanswered No Yes Figure 2.26 Diagram of Resident s Attitude about Activity Plan In Regency of Pasaman Barat How about your opinion into widening plan of this road? Unanswered Very agree agree Compensation 51. Regency of Pasaman. PAPs prefer to deliberate on compensation rates before undertaking decisions regarding compensation. They agree fully with the deccision mechanism stated in the Government Regulations. However, if studied from desirable compensation form, 80% of residents want financial compensation and 20 % dosent give opinion. Figure 2.27. Diagram of Desirable Compensation Form from Pasaman s residents Does the form of replacement for building/economic plants affected to road widening plan Unanswered Compensation 52. Regency of Pasaman Barat. Similar to respondents in Regency of Pasaman, 55 of 57 respondents in Pasaman Barat desire financial compensation. Figure 2.28. Diagram of Desirable Compensation Form from Pasaman residents Does the form of replacement for building/economic plants affected to road widening plan Unanswered Compensation COMPENSATION ARRANGEMENTS 53. Principle of compensation. A policy taken by the Project initiator so that all public assets affected by the Project will be compensated. Compensation may be in the form or cash payments or reconstruction of the affected assets following agreements between asset owners/ Project Affected Persons and the Road and Bridge Improvement Project of West Sumatera Province 15

Government. The LARAP study will calculate a budget of the compensation costs to be made available for later implementation. 54. Compensation for land. Compensation for the affected land will be based on its real replacement cost or market price. The sum of compensation will be jointly discussed between the PAPs and Local Government based on land valuation made by Independent Land Appraisal Team in accordance with land acquisition mechanism (as spelled out in Presidential Decree No. 36/2005; Presidential Decree RI No. 65/2006 and the Head of Land Agency Regulation No. 3/2007) on land acquisition for public purpose. The appraisal result will be given to the Land Acquistion Committee (LAC) as a basis for conducting negotiations with PAPs. Costs of any registration and transfer taxes will be paid by the Government. 55. For the budget needs of this LARAP, an analysis has been conducted to assume compensation rate for the affected lands. The assumptions were made by considering market price, the location and the function of affected asset. The market price of the land in the site presently based on the LARAP s analysis is as much 75.000/m 2. This analysis will become input to Independent Land Appraising Team. However, the market price of the land for LAC s reference during negotiation will come from the Land Appraisal Team. 56. Compensation for Buildings. Affected buildings will be compensated based on material market prices for replacement buildings. A thorough LARAP analysis on market price of affected building is conducted in order for involved PAPs to rebuild their acquired assets for budget estimations. This analysis is conducted by considering Government Standard Price and market prices of materials, types and function/usage of the building and asset dimension. The analysis is conducted without calculating depreciation value. This price will then be proposed to the Human Settlement Agency as inputs that then will be given to LAC for negotiation with PAPs. The result of analysis is that the market price ranges of the building from IDR 2.000.000 3.000.000/m2 for permanent buildings and IDR 1.000.000 1.500.000/m2 for semipermanent buildings, and IDR 175.000-500.000/m2 for shack buildings. It is also presented standar price from government and from market price as comparison. Table 3.1 Government Standard Price based on Building Construction No. Construction of Bulding Function Price x IDR1.000/m2) 1. Permanent Shop 425.000,0 2. Semipermanent Shop 310.000,0 3. Shack Stall 145.000,0 4. Permanent House 550.000,0 5. Semipermanen House 400.000,0 6. Shack House 175.000,0 Source: Administration of respective Regencies 2010 (processed) Table 3.2 Market Price of Building based on Function and Construction No. Construction of Bulding Function Price x IDR1.000/m2) 1. Permanent Shop 3.000.000,0 2. Semipermanent Shop 1.500.000,0 3. Shack Stall 250.000,0 4. Permanent House 2.500.000,0 5. Semipermanen House 1.250.000,0 6. Shack House 200.000 Source: Study Result in respective Regencies 2010 (processed) 57. Market pricing for buildings acquisition accounts for size and age of construction, location and function of building and pertinent area development prospect. Studies found that buildings functioning as stalls or shops are more expensive per m 2 in the capital city than similar buildings far from the Government Road and Bridge Improvement Project of West Sumatera Province 16

center (rural). Subsequently, houses are cheaper than shop or stall buildings. This is consistent for all forms of construction: permanent, semipermanent and shacks. 58. Compensation for other affected structure. Residents fences and terraces falling in the Right of Way will be replaced through compensation. The results of questionnaires and interviews with owners of the terraces and fences reveals that a portion of the PAPs want the physical product to be re-constructed by the Project, and another portion prefer financial payment as agreed by the LARAP study. Because the Government has no standard for the reconstruction of these assets, a thorough analysis should be done for affected assets. Compensation costs are explained below and are a result of the LARAP study done by considering dimension and type of resident s fence and terrace. Table 3.3. Market Price of Other Buildings under dimension and type of construction No. Construction of Building Function Price under study result of LARAP Remark A. Terrace 2. Permanent Cement-Floor 250.000,0 4. Semipermanent Cement-Floor 200.000,0 5. Wooden Frame of Cement-Floor 150.000,0 6. Wooden Frame of Ground-Floor 100.000,0 B. Fence Iron Fence of Stone-Frame 100.000,0 Stone-Fence 150.000,0 C. Ground Border Foundation (Helical) Relocation Fee of Border Foundation 50.000,0 Source : Result of Study 2010 (processed). 59. Economic Plants Price. Compensation for affected plants will be based on age and size of the affected plant and also presently crop price. An analysis on the compensation rate for the affected plant was conducted as inputs for responsible institutions (Agriculture/Plantation Agency) and also for LAC and to estimate budget. This analysis used Government Standard Price and also market price from the survey result. The result of the analysis is on Table 3.6 and ranges from IDR 2.500.000 1.500.000/tree for cropped plam plants and not too old (highly productive) and RP 1.500.000 1.000.000/tree for palm had been aged more than 20 years or still bear fruit of sand. Table 3.4 Study Result of LARAP for Economic Plants No Standard Price (IDR/batang) Type of Plants. Big Middle Small 1. Palm 600.000,0 1.000.000,0 350.000,0 2. Coconut 200.000,0 300.000,0 150.000,- 3. Chocolate 450.000,0 600,000,0 200.000,0 4. Areca 150.000,0 200.000,0 100.000,0 5. Other Fruits 150.000,0 250.000,0 100,000,0 Source : Result of study in respective Regencies 2010 (processed). Table 3.5 Government Standard Price for Economic Plants based on age or size No Standard Price (IDR/stem) Type of Plants. Big Middle Small 1. Palm 250.000,0 200.000,0 100.000,0 2. Coconut 75.000,0 60.000,0 40.000,0 3. Chocolate 200.000,0 175.000,0 100.000,0 4. Areca 75.000,0 60.000,0 40.000,0 5. Other Fruits 100.000,0 75.000,0 50.000,0 Source : Administration of respective Regencies 2010 (processed) Road and Bridge Improvement Project of West Sumatera Province 17

Table 3.6 Market Price (estimation) for Economic Plants based on field research (type, age and presently crop price) No Standard Price (IDR/stem) Type of Plants. Big Middle Small 1. Palm 500.000,0 750.000,0 250.000,0 2. Coconut 175.000,0 250.000,0 100.000,- 3. Chocolate 350.000,0 600,000,0 150.000,0 4. Areca 125.000,0 160.000,0 60.000,0 5. Other Fruits 125.000,0 250.000,0 75,000,0 Source : Administration of respective Regencies 2010 (processed) 60. All affected buildings and assets will be dismantled after compensation payments are finished and construction of the replacement buildings is completed. Research into market prices and and problem handling efforts of road widening and market condition that always spill upon market day is conducted through structured discussion and interview, and continued with focus discussion group (FGD). Result of research indicates that residents realize that every day the market always crowded and occurrence of traffic jam and hope existence of market area arrangement. Therefore, executive society of road widening project, namely P2JJ Province of West Sumatera may outright undertake arrangement with parking and stall yard preparation for sidewalk traders. 61. Existence of sidewalk trader stall and vehicle parking, either trader s fleet, village transportation, or private two-wheel vehicle and ojek in every market day namely on Friday, had caused traffic jam in this road stretch. Though residents realize this, but heretofore had not been problem-solving effort like sidewalk trader arrangement or vehicle parking. 62. Action plan submitted for this problem is parking yard and sidewalk trader yard as well. Required landmass for Tampuruang Market is 1.500 m2 and 1000 m2 for Kinali Market just with surface hardening of asphalt construction. This effort certainly requires land preparation besides the hardening itself in Bawan Market area around 20-30 s from the border of right of way. Outlet arrangement will be surrendered to market administrator namely the administration of Nagari, where this project-stricken people are prioritized to obtain this place. 63. Estimated Compensation Budget. The estimated value of public assets is IDR 1.789.200.000, as shown in Table 3.7. Preparation is needed for land compensation payments, house buildings, garage-shop, other economic facilities, and other public building such as fences, home terraces or residents land border, and economic plants that all lie in the Right of Way. This budget is allocated for the improvement of some market utilities in Kinali and Tampuruang. These cost are also allocated for the LACs, both at the Regency and Provincial levels. The financing for respective regencies is described below in Table 3.7. Table 3.7 Recapitulation of LARAP Costs for National Road Stretch Impovement (Padangsawah Simpangempat Link 047.2) No. Description RAB Remark A. 1. 2. 3. REGENCY OF PASAMAN Compensation of Building Compensation of Terrace and Other Building Costs of Land Acquisition Committee and Compensation 66.400.000,00 4.400.000,00 15.000.000,00 Sub-Total 84.400.000,00 Regional Revenues and Expenditure Budged I&II Road and Bridge Improvement Project of West Sumatera Province 18