Land Acquisition and Resettlement Action 
                                                             Plan (LARAP)
                                       for Waesano Geothermal Exploration 
                                                                   Project
                                  Manggarai Barat Regency, Nusa Tenggara 
                                                 Timur Province, Indonesia
                                                                MARET 2019
                                                GEUDP-WS-RPT-HSE-005-1 Waesano LARAP 
              Funded by: World Bank Group and New Zealand Foreign Affairs & Trade Aid Programme
                         Table of Contents
                         EXECUTIVE SUMMARY .......................................................................................................................IX
                         1.    INTRODUCTION ........................................................................................................................... 1
                           1.1.  BACKGROUND .............................................................................................................................. 1
                           1.2.  SCOPE OF LARAP ....................................................................................................................... 1
                           1.3.  REPORT STRUCTURE .................................................................................................................... 2
                         2.    DESCRIPTION OF THE PROJECT ............................................................................................. 3
                           2.1.  PROJECT STATUS ......................................................................................................................... 3
                           2.2.  PROJECT LOCATION ...................................................................................................................... 3
                         3.    POTENTIAL IMPACTS ................................................................................................................. 6
                           3.1.  PROJECT COMPONENTS REQUIRE LAND ........................................................................................ 6
                           3.2.  SCOPE OF IMPACTS ...................................................................................................................... 9
                           3.3.  VULNERABLE PEOPLE ................................................................................................................. 10
                           3.4.  SEVERELY PAPS ........................................................................................................................ 10
                           3.5.  SHARECROPPERS ....................................................................................................................... 10
                         4.    SOCIO ECONOMICHOUSEHOLD SURVEY OF THE PROJECT AFFECTED PERSONS ...... 17
                             4.1.   Stakeholder Interview and Households Socio Economic Survey of the PAPs ..................... 17
                             4.2.   Overviewon the Result of Households Socio Economic Survey .......................................... 18
                             4.3.   Demographic Characteristic of PAPs .................................................................................... 19
                             4.3.1.   Age and Gender Distribution ............................................................................................. 19
                             4.3.2.   Education ........................................................................................................................... 19
                             4.4.   Economic Condition and Livelihoods .................................................................................... 20
                             4.4.1.   Livelihoods of the PAPs ..................................................................................................... 20
                             4.4.2.   Land Tenure and Land Use ............................................................................................... 22
                             4.4.3.   Level of Welfare ................................................................................................................. 23
                            4.5. HOUSING CONDITION..................................................................................................................25
                           4.6.  COMMUNITY PERCEPTION ........................................................................................................... 26
                             4.6.1.   Participation in Socialization .............................................................................................. 26
                             4.6.2.   Knowledge of the Project ................................................................................................... 27
                             4.6.3.   Concern toward the Project Land Acquisition ................................................................... 27
                             4.6.4.   Willingness for Land Acquisition ........................................................................................ 28
                             4.6.5.   Knowledge of the Project Grievance Process ................................................................... 29
                         5.    LEGAL ANALYSIS ...................................................................................................................... 30
                           5.1.  INDONESIA LAW AND REGULATIONS ............................................................................................. 30
                             5.1.1.   Land Acquisition ................................................................................................................ 30
                             5.1.2.   Forestry Land Use ............................................................................................................. 32
                             5.1.3.   Other Related Regulations6 .............................................................................................. 33
                           5.2.  WORLD BANK SAFEGUARDS POLICY ON LAND ACQUISITION ......................................................... 34
                           5.3.  WORLD BANK POLICY ON GENDER .............................................................................................. 35
                           5.4.  SMIGEUDPESMF ON RESETTLEMENT POLICY ......................................................................... 36
                         6.    PROJECT ENTITLEMENT, ASSISTANCE AND BENEFICIAL MEASURES ............................ 43
                           6.1.  GENERAL APPROACH.................................................................................................................. 43
                           6.2.  LAND ACQUISITION AND RESETTLEMENT SCHEMES ...................................................................... 43
                             6.2.1.   Resettlement of Individually-OwnedLand and Assets ....................................................... 44
                             6.2.2.   Land Acquisition of Access Road Widening Area .............................................................. 44
                             6.2.3.   Non-Individually Owned Asset ........................................................................................... 45
                           6.3.  ELIGIBILITY, CUT-OFF DATE, AND ENTITLEMENT OF COMPENSATION .............................................. 45
                         LARAP 
                                                                                                                                    ii 
                         7.    VALUATION OF ASSETS AND CALCULATION OF COMPENSATION FOR LOSSES .......... 49
                           7.1.  VALUATION OF ASSETS ............................................................................................................... 49
                             7.1.1.   Compensation for Land Lease .......................................................................................... 50
                             7.1.2.   Compensation of Non-Individually Owned Asset .............................................................. 50
                             7.1.3.   Entitlement to Vulnerable and Severely PAPs................................................................... 50
                           7.2.  CALCULATION OF COMPENSATION ............................................................................................... 51
                         8.    CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE ............................... 52
                           8.1.  CONSULTATION AT PRIOR TO PREPARATION OF LARAPDOCUMENT .............................................. 52
                           8.2.  CONSULTATION/SOCIALIZATION DURING PREPARATION OF LARAPDOCUMENT ............................. 53
                           8.3.  DISCLOSURE .............................................................................................................................. 55
                         9.    ORGANISATIONAL ARRANGEMENT AND RESPONSIBILITIES ........................................... 56
                         10.   IMPLEMENTATION SCHEDULE ................................................................................................ 58
                         11.   COST AND BUDGET.................................................................................................................. 61
                           11.1.    COMPENSATION COST ............................................................................................................. 61
                             11.1.1.    Estimated Compensation for Land ................................................................................. 61
                             11.1.2.    Estimated Compensation for Affected Secondary Structure .......................................... 61
                             11.1.3.    Estimated Compensation for Affected Plants/Trees....................................................... 61
                             11.1.4.    Estimated Compensation for Forestry Land ................................................................... 61
                             11.1.5.    Livelihood Restoration Budget ....................................................................................... 62
                             11.1.6.    Budget for Land Certification .......................................................................................... 62
                           11.2. TOTAL BUDGET FOR IMPLEMENTATION OF LARAP ......................................................................... 62
                         12.   GRIEVANCE REDRESS MECHANISM...................................................................................... 64
                         13.   MONITORING AND REPORTING .............................................................................................. 67
                         14.   BIBLIOGRAPHY ......................................................................................................................... 68
                         APPENDIX A QUESTIONNAIRE FORM .............................................................................................. 69
                         Figures
                         Figure 2-1 Proposed Waesano Project Exploration Facilities .................................................................................. 5
                         Figure 3-1 Waesano Exploration Project Area of Interest (AOI) and Social Impact Zone........................................ 8
                         Figure 9-1 Project Management Unit (Jakarta Based) .......................................................................................... 57
                         Figure 9-2 Exploration Site Team .......................................................................................................................... 57
                         Figure 12-1Grievance Redress Mechanism .......................................................................................................... 66
                         Tables
                         Table 3-1 Land Requirement ................................................................................................................................... 6
                         Table 3-2 Scope of Impacts ..................................................................................................................................... 9
                         Table 3-3 Vulnerable and Severelly PAPs...............................................................................................................11
                         Table  3-4. List of Project Affected Peoples (PAPs)................................................................................................13
                         Table 4-1 Stakeholders Interview during LARAP Study ........................................................................................ 17
                         Table 4-2 Age ofProject Affected Peoples (PAPs)…...............................................................................................19
                         Table 4-3 Gender of PAPs ..................................................................................................................................... 19
                         LARAP 
                                                                                                                                    iii 
               Table 4-4. Education Level per Gender Category ................................................................................................. 19
               Table 4-5. Occupation of the PAPs ........................................................................................................................ 20
               Table 4-6 Education and Occupation of the PAPs Affected by Well Pad and Main Facilities ................................ 21
               Table 4-7 Education and Occupation of the PAPs Affected by Access Road Widening ........................................ 21
               Table 4-8. Livelihood of the Affected Household ................................................................................................... 21
               Table 4-9 Average Land Ownership Area .............................................................................................................. 23
               Table 4-10 Average Land Ownership .................................................................................................................... 23
               Table 4-11. Expenses per Capita .......................................................................................................................... 24
               Table 4-12. Income per Capita .............................................................................................................................. 24
               Table 4-13 Social Assistance Programs ................................................................................................................ 24
               Table 4-14 Land Status ......................................................................................................................................... 25
               Table 4-15 House Building Condition .................................................................................................................... 26
               Table 4-16. PAPs Participation in Project Socialization ......................................................................................... 26
               Table 4-17. PAPs Knowledge of Planned Project and Land Acquisition Plan ........................................................ 27
               Table 4-18 PAPs Concern toward the Land Acquisition Plan ................................................................................ 28
               Table 4-19.PAPs Willingness for Land Acquisition ................................................................................................ 28
               Table 4-20 Knowledge of Project Grievance Mechanism ...................................................................................... 29
               Table 5-1 Gap Analysis ......................................................................................................................................... 37
               Table 6-1 Entitlement for the Project PAPs............................................................................................................ 46
               Table 7-1. Replacement COst Assessment Using Indonesia's Valuation Approaches .......................................... 49
               Table 8-1 Consultation Prior to Preparation of LARAP Document  ..................................................................... 532
               Table 8-2 Consultation /Socialization During Preparation of LARAP Document   ............................................... 533
               Table 9-1 Roles and Responsibility of the Project Land Acquisition Process ........................................................ 56
               Table 10-1 Land Acquisition Schedule .................................................................................................................. 58
               Table 11-1 Total Budget for Implementation of LARAP ......................................................................................... 62
               LARAP 
                                                                               iv