Millennium challenge account-indonesia green prosperity project

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MILLENNIUM CHALLENGE ACCOUNT-INDONESIA

GREEN PROSPERITY PROJECT

PROGRAM MANAGEMENT CONSULTANT

WEST SUMBAWA DISTRICT

RAPID DISTRICT READINESS ASSESSMENT (RDRA)

FOR PARTICIPATION IN MCA-INDONESIA’S

GREEN PROSPERITY PROJECT

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

Under Contract Number GP-B-001

Table of Contents

i

Table of Contents

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

List of Tables .................................................................................................................................................. ii

List of Figures .................................................................................................................................................. ii

List of Appendices .......................................................................................................................................... ii

Acknowledgements ....................................................................................................................................... iii

Executive Summary ...................................................................................................................................... iv

Section 1

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

1.1

Background .............................................................................................................................................. 1-1

1.2

Objectives ................................................................................................................................................. 1-1

Section 2

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

Section 3

General Description of the District .......................................................................... 3-1

3.1

Location and Accessibility ................................................................................................................. 3-1

3.2

Demographics ......................................................................................................................................... 3-1

3.3

Regional Economy ................................................................................................................................ 3-2

3.3.1

Performance for the Period 2011-2015 ..................................................................... 3-2

3.3.2

Development Targets for 2011-2015 .......................................................................... 3-3

3.3.3

Low-Emission Economic Development ...................................................................... 3-4

3.3.4

Renewable Natural Resources Management ............................................................ 3-4

3.4

Mining and Energy Sector ................................................................................................................. 3-5

3.5

Spatial Plan .............................................................................................................................................. 3-6

3.6

Tourism Sector in West Sumbawa District ................................................................................ 3-7

3.7

Profile of Poto Tano Sub-District and Poto Tano Village ..................................................... 3-9

3.8

Social and Gender Integration .......................................................................................................3-11

Section 4

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

Section 5

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

Table of Contents

ii

List of Tables

Table 1:

Numbers of tourism facilities in West Sumbawa Districts. ................................................. 3-8

List of Figures

Figure 1:

GDP contributions from the mining and excavation sector to the district

economy from 2010 to 2014. ........................................................................................................... 3-5

Figure 2:

GDP contributions from tourism-related sectors consisting of providers of

accommodations, food and beverages (A) and other services (B) from 2010

to 2014. ...................................................................................................................................................... 3-8

Figure 3:

Zonation in Gili Balu island complex...........................................................................................3-10

Figure 4:

GDP contributions from various sectors within West Sumbawa District from

2010 to 2014. .......................................................................................................................................... 5-2

List of Appendices

Appendix A

Maps of West Sumbawa District

Appendix B

Photographs of West Sumbawa Landscape

Appendix C

Summary of Field Observation Activities

Acknowledgements

iii

Acknowledgements

This report was prepared with the support of MCA-Indonesia and the West Sumbawa District

government, by the Program Management Consultant (PMC) team of MCA-Indonesia’s Green

Prosperity Project (GPP). Particular support was provided by MCA-Indonesia by Pak M Sigit Widodo,

Pak Mufid Magfoedin, who provided initial information, facilitation and the field team’s letter of

support. In West Sumbawa District, particular support was provided by the Head of Bappeda (Dr.

Amry Rakhman) Secretary of Bappeda (Pak Abdul Muis); Head of Infrastructure Sub-division (Pak

Arie Hadyata); Representative of Mining and Energy Agency (Pak Eno), Representative of Tourism

Agency (Pak Saleh); Head of Family Planning and Women Empowerment Office (Ibu Hafni);

Representative of Marine Affairs and Small Island Agency (Pak Noto Karyono); Head of Bureau for

Investment and Licensing (Pak Hajamuddin); Secretary of Poto Tano Sub-district (Pak Salahudin);

Representative of Farmers’ association (Pak Nashudin); and Acting Village Head of Poto Tano (Pak

Nandang Suheri) for providing valuable data and information used in this Rapid District Readiness

Assessment (DRA) report.

Executive Summary

iv

Executive Summary

This report provides a rapid district readiness assessment (RDRA) of the capacity, commitment, and

investment opportunities of West Sumbawa District, West Nusa Tenggara, to support

environmentally sustainable and low-carbon economic growth through the MCA-Indonesia Green

Prosperity Program (GPP). This assessment included a field visit from December 1 to 4, 2015.

The objectives of this rapid assessment were to assess the level of readiness of West Sumbawa

District for GPP activities, and specifically examined: political conditions, institutional capacity,

regulatory frameworks, social and gender analysis, and required conditions under the Millennium

Challenge Compact. Additionally, the Rapid DRA assesses readiness for Participatory Land Use

Planning (PLUP) and overview of the renewable energy sector. The result of this assessment is used

as a prerequisite for signing of MoUs with MCA-Indonesia for Partnership Grant under Window 1B.

West Sumbawa District consists of 16 small islands, with elevations ranging from 0 to 1,730 m above

sea level. Approximately half (50%) of the district area consists of steep topography with gradients

of more than 40%. The remaining areas consist of 12% flatlands, 9% undulating terrain, and 29%

steep terrain. Approximately 73% of the district is a national forest area. Limited production forest

HPT covers 36,155 ha, or 20% of district area; permanent production forest covers 18,753 ha, or

10% of district area; while the remaining 43% consists of protected forest including Jereweh Nature

Reserve. West Sumbawa has two seasons (dry and wet), with average days of rain in 2013 were in

range from 8.00 to 15.67 days with precipitation that ranged from 0 to 802 mm/month (averaged

126.33 mm to 218.2 mm per month in Poto Tano and Seteluk sub-districts respectively). The highest

rainfall is observed in December that reach 802 mm. Long exposure to sunlight in 2013 reached

77.5% with an average wind speed of 5.1 knots.

The population of West Sumbawa is 129,724, consisting of 65,727 men and 63,997 women resulting

in a male: female ratio of 103:100. The population grew by 2.83% from 2012 to 2014. Population

density averages 72 people per km

with the highest population density of 144 people per km

recorded in Maluk Sub-District. The lowest population density of 25 people per km

is recorded in

Sekongkang Sub-district.

Economic performance of West Sumbawa District is based on records of GDP in the district from

2009 to 2013. The data show that the economic performance of West Sumbawa has improved, as

indicated by an increase in gross domestic product (GDP). Based on a constant price set in 2010, GDP

in West Sumbawa fluctuated from IDR 14.7 trillion in 2011, IDR 10.8 trillion in 2012, IDR 11.2

trillion in 2013, to IDR 11.2 trillion in 2014. The calculated average annual GDP increase from 2012

to 2014 is 6.3%, which is higher than the overall West Nusa Tenggara provincial average of 5.8%

annual GDP increase. West Sumbawa District relies on mining and quarrying as a main source of

revenue.

West Sumbawa District has implemented several programs and activities that can be linked with the

district’s commitment to the provincial strategy. The use of photovoltaic (solar panel) units in Rarak

Ronges Village in Brang Rea Sub-district, as well as the setup of a large-scale biogas digester in

Senayan, Poto Tano Sub-district, indicates a degree of alignment with provincial commitments to

reduce greenhouse gas emissions through the use of renewable energy sources.

West Sumbawa has promising renewable natural resources to support sustainable development.

Potential renewable natural resources in West Sumbawa that may be important to the GPP are

renewable energy (solar panels in Brang Rea Sub-district, hydropower resources ranging from

micro-hydro to mini-hydro power generators in Rarak Ronges Village, Brang Rea Sub-district) and

Executive Summary

biofuel from Jatropha curcas (88 tons per year, or equal to a maximum production of 47,000 liters of

oil per year). Natural resource management scenarios also include: management of water springs

under the Towards Green Indonesia (Menuju Indonesia Hijau/MIH) program, sustainable coastal

resource management and conservation of small islands in Gili Balu, and Forest Management Unit

(KPH) Brang Rea.

Mining (mainly by PT Newmont Nusa Tenggara) currently contributes a large portion to the

economy of West Sumbawa District with 79.5% GDP contribution. PT Newmont Nusa Tenggara

(PTNNT) was assigned a contract of work area in 1986 to explore and exploit copper in Batu Hijau

area, and began operations in March, 2000. PTNNT planned to ramp down production in 2014 due

to a delay in securing an export permit. In 2015, the export permit was secured with a commitment

to export processed materials (rather than the raw ore) in collaboration with a smelter plant in

Gresik, East Java Province. Based on GDP contributions from 2010 to 2014, a contribution from the

mining and excavation sector to the district economy indicates a decreasing trend.

West Sumbawa District has a valid spatial plan that has been legalized by a local regulation. District

spatial plan of West Sumbawa is legally enforceable by Perda of West Sumbawa District No. 2/2012.

Within the district spatial plan, the vision of West Sumbawa District is to focus on agro-industry,

agro-business, agriculture, fishery, and tourism potentials. The district spatial plan also emphasizes

sustainable land-use, support for economic growth, conservation, and strategic defenses.

Recommendations for West Sumbawa District include advising district government on the

significance of participatory mapping (Task #1), updating the geospatial data (Task #2), and

concurrently providing capacity building and training for mapping personnel in Bappeda (Task #4).

Therefore, the complete PLUP package is recommended for West Sumbawa District.

West Sumbawa District possesses 46 tourism destinations consisting of 34 natural and 12 man-

made (artificial) locations. The Bureau of Statistics indicates that the Sekongkang, Jereweh, Maluk,

and Taliwang sub-districts are the main locations for tourist visitation. Visitors in 2014 consisted of

14,480 (80%) domestic and 3,537 (20%) international visitors. International visitors increased by

113% from 1,659 to 3,537 visitors in 2011 and 2014, respectively.

Poto Tano District is known as the gateway to Sumbawa Island, because it has a ferry port located in

Poto Tano Village. This port is the main connector between Sumbawa and the provincial capital in

Sumbawa islands. The livelihood of the local people is mainly fishing (coastal-based), with some sisal

(Agave sisalana) and cattle farming practices. Sub-district officials have provided recommendations

for PT ESL and PT NOP in relation to the licensing process for these tourism companies. Poto Tano

Village consists of three hamlets (dusuns): Pinamin, Poto Tano A, and Poto Tano B. The livelihood of

residents in Poto Tano Village is mainly fishing (mackerels and squids with some molluscs, sharks

and rays) with indications of dry-land agriculture (ladang) practices on 380 ha of the village area.

Tourism is not yet developed in the area, and transportation to the islands is arranged through

individual boat owners in the village.

West Sumbawa scored 50 out of the possible maximum 66 points. This is a moderate score (75%)

and indicates some degree of commitment and readiness of West Sumbawa to receive GPP

investment. Aspects that received a minimum score of 1 were found in the regulatory aspects due to

an absence of recognition of customary laws, the lack of incentive mechanisms for green investment,

and a lack of payment of environmental service scenarios. West Sumbawa also scored low (1) on the

PLUP assessment due to the need for participatory mapping, geospatial data updating, and training.

The West Sumbawa District development plan for optimizing nature tourism is consistent with local

resources available in the district landscape. With 73% of the district area as forest, and the

potential of coastal tourism along the west coast and small islands of West Sumbawa, the district

offers potential for nature-based tourism development. It is worth noting that, based on the GDP

Executive Summary

projection; potential sectors that can boost the local economy in West Sumbawa District consist of

agriculture, forestry, and fisheries. From an environmental services perspective, the landscape of

West Sumbawa District consists of protected forests (Forest Management Unit/KPHL Brang Rea)

that are crucial in providing water for agriculture practices and the daily needs of residents in West

Sumbawa District.

Section 1

Introduction

1-1

Section 1

Introduction

1.1

Background

MCA-Indonesia, under the Green Prosperity Project (GPP), has selected 12 districts to be assessed

using Rapid District Readiness Assessments (DRA) for project investments in regards to Renewable

Energy (window 3B). Prior to proceeding with the GPP, selected districts must be assessed to

determine which districts have the greatest readiness to host GPP activities, based on criteria set by

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

support environmentally sustainable and low-carbon economic growth. DRAs are intended to ensure

that targeted districts can effectively support GPP activities, and to prioritize these districts for

signing of Memoranda of Understanding (MOU) with MCA-Indonesia. The Rapid DRAs are

undertaken by the Project Management Consultant (PMC) supporting MCA-Indonesia. This report

represents the results of a Rapid DRA undertaken for the GPP by PMC, in West Sumbawa District,

West Nusa Tenggara Province.

1.2

Objectives

Objectives of this Rapid DRA were to:



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

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

Compact conditions;



Identify and assess critical issues at the district level;



Compile relevant secondary data;



Support MCA-Indonesia in prioritizing pre-selected districts for MOU signing and partnership

(Window 1B) agreement;



Assess investment opportunities within the district for environmentally sustainable and low-

carbon economic growth; and



Address social and gender issues in relation to GPP specifications.

Section 2

Methodology

2-1

Section 2

Methodology

Rapid District Readiness Assessment (DRA) consists of three major components of secondary data

collection: (1) Readiness Analysis (using the same matrix used in previous rapid DRAs) combined

with geospatial and spatial plan analyses; (2) Strategic Environmental Assessment; and (3)

stakeholder mapping and analysis based on renewable energy resources within each respective

district. This rapid DRA also includes an assessment of perception and preferences of local

government stakeholders towards a renewable energy scenario in West Sumbawa District.

Secondary data collection focuses on compiling documents such as the long-term and medium-term

development plans, West Sumbawa District statistics, Strategic plans from relevant district

government agencies, the Regional strategy, the Strategic Environmental Assessment, and the

regional strategy for reducing greenhouse gas (RAD-GRK). In addition to these documents, a spatial

plan map (preferably in .shp file format) is collected and compiled to improve our understanding of

each district from a spatial planning perspective. The emphasis of the spatial plan data is to

understand the context of land designation, forest cover, and natural resources. Whenever possible,

the spatial plan data should also include data on moratorium and indigenous land ownership to

allow more comprehensive analyses of relevant context in each district.



Collection of Secondary data for West Sumbawa District consisted of:

–

West Sumbawa District Spatial Planning 2010-2030;

–

Strategic Plan (RENSTRA) and Report of Performance (LAKIP) for West Sumbawa District;

–

Medium Term Plan (RPJMD) 2011-2015;

–

Long Term Plan (RPJP) 2006-2025;

–

District Regulations (PERDA) relevant with Spatial Plans, environmental and social

safeguards; and

–

West Sumbawa District Statistics 2015.



Field visit and interviews. A field visit to West Sumbawa District was conducted by the PMC

team on October 1 and 2, 2015, to better understand the local context for future GPP investment.

Target areas visited included: the general landscape of West Sumbawa, and overall conditions in

West Sumbawa including infrastructure and land uses. The PMC team met and conducted

interviews with the following District offices:

–

Bappeda (District Planning and Development Board);

–

Bappeda Secretary;

–

Infrastructure Sub-Division, Bappeda;

–

Energy and Mining Agency;

–

Division for Women Empowerment (under the Bureau of Family Planning and Women

Empowerment);

Section 2

Methodology

2-2

–

Bureau of Tourism;

–

Bureau of Marine Affairs and Small Islands; and

–

Farmer’s foundation (Yayasan Serikat Tani Pembangunan/YSTP).

Maps of West Sumbawa District are presented in Appendix A. Photographs taken during the field

visit appear in Appendix B. A Summary of meetings with the above organizations is presented in

Appendix C.



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