Resettlement Planning Document

Resettlement Plan
Document Stage: Final
Project Number: 38919
July 2006

INO: Tangguh LNG Project

Prepared by BP Berau Limited for the Asian Development Bank (ADB).

The resettlement plan is a document of the borrower. The views expressed herein do not necessarily
represent those of ADBs Board of Directors, Management, or staff, and may be preliminary in nature.

BP Tangguh LARAP

Land Acquisition and

Resettlement Action Plan

BP Tangguh Project
BP Berau, Ltd.

www.bp.com
Perkantoran Hijau Arkadia , Tower D
Jalan T.B. Simatupang Kav 88, Jakarta 12520
Tel: +62.(0)21.7883.8000
Fax: +62.(0)21.7883.8333

Update
This document presents a Land Acquisition and Resettlement Action Plan for the
Tangguh Project. Completion of the document and implementation were, to some
extent, occurring simultaneously. To avoid the need to provide a running update,
a cut-off date of March 2005 was utilised to complete the document. As almost
two years have passed since relocation of the Tanah Merah population, a brief
update of progress is provided here.

Physical relocation of Tanah Merah households to replacement villages of

Tanah Merah Baru and Onar Baru was completed in June/July 2004.

Livelihood restoration programs for resettlers in their new settlements

are being implemented and will continue through 2009. Key aspects of
these programs have included:
i. transitional food support allowing households to establish new
gardens,
ii. distribution of agricultural tools, crop seed and fruit trees to all
households,
iii. re-establishment of agriculture through opening of land for
gardening, these activities being supported by extensionists from
the Department of Agriculture, Fakfak Regency
iv. provision of support for households to construct new boats and
provision of an outboard motor to all households with such a boat, as
well as
v. assistance in the development of a village management cooperative
including training on maintenance and repair of facilities and utilities.

Primary and secondary schools in Tanah Merah, Saengga and Onar Baru
are now operating.

The resettlement-affected population is employed in on-going

resettlement and construction activities (e.g., Saengga village renovation
and LNG facility construction).

Construction of improved housing and infrastructure for the host

communities (Saengga and Onar) commenced in October 2004 and
is scheduled to be completed in April 2006 at which time host village
households will move into their new houses.

Contents in Brief

List of Figures

xiii

List of Tables

xv

Acronyms and Indonesian Terms

Executive Summary

Introduction

The Tangguh Project

3 Policy Framework For Land Acquisition and Resettlement

xvii

xxi
1
11
23

4 The Tangguh Project Policy and Legal Framework

5
6

for Project-Affected People

35

 he Resettlement-Affected Communities:
T
Environment, Demography, Productive Activities and
Sources and Levels of Income

71

Impoverishment Risks and Livelihood Restoration Strategies

for the Tangguh Resettlement Program

101

Public Consultation and Disclosure 127

Village Design and Relocation

149

Livelihood Restoration and Development

169

10

Social Services and Community Cohesion 213

11 Implementation of the Resettlement and Livelihood

Reconstruction Programs 227

12

Budget 243

13

Monitoring and Evaluation 249

Appendices 257

Plates

311

Contents

Contents
List of Figures

xiii

List of Tables

xv

Acronyms and Indonesian Terms

xvii

Executive Summary

xxi

Scope of Land Acquisition and Resettlement. . . . . . . . . . . . . . . . . . . . . xxi

Policy Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxii

Entitlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxii

Socio-economic Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxii

Consultation, Participation and Disclosure . . . . . . . . . . . . . . . . . . . . . xxiii

Grievance Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiii

Livelihood Restoration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiii

Employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiv

Implementation Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiv

Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiv

Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiv

Monitoring and Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxv

1.

Introduction

1.1

The Tangguh Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.2

Land Acquisition and Resettlement Action Plan (LARAP) . . . . . . . . . . . . 3

1.2.1

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.2.2.

Land Acquisition and Resettlement Action Plan (LARAP). . . . . . . . . . . . . . . . . 3

1.2.3

Resettlement Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.2.4

Project-Affected People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.2.5

Scope of Involuntary Resettlement Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.2.6

Summary Description of Resettlement Action Plan Program. . . . . . . . . . . . . . 6

Contents

1.2.7

Structure of LARAP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.3

Other Relevant Studies and Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.4

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.

The Tangguh Project

2.1

Project History and Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.2

Project Location. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.3

Project Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.4

Site Selection and Consideration of Alternatives. . . . . . . . . . . . . . . . . . . 14

2.5

2.6

Defining the Project Footprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Offshore Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

2.7

Project Investment and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2.8

Papuan Autonomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2.9

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3. Policy Framework For Land Acquisition and

Resettlement

23

3.1

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3.2

The Basic Concepts of Resettlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3.2.1

Involuntary Resettlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.2.2

Project-Affected People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.2.3

Physical and Economic Displacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.2.3.1

Restricted Access. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.2.3.2

Expropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.2.3.3

Free Land Purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.2.3.4

Entitlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

3.2.3.5

Resettlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

3.2.3.6

Resettlement with Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

3.2.3.7

Rehabilitation and Reconstruction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

3.2.3.8

Host Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

3.2.3.9

Resettlement Plan (RP)/Resettlement Action Plan (RAP) . . . . . . . . . . . . . . . . . . . . . 26

3.3

ii

11

International Policies and Standards for Resettlement . . . . . . . . . . . . . 26

3.3.1

Tangguh Project Policy and Standards for Involuntary Resettlement . . . . . . 26

3.3.2

Development of Involuntary Resettlement Policy and Standards . . . . . . . . . 27

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

3.3.2.1

Asian Development Banks Policy on Involuntary Resettlement . . . . . . . . . . . . . . . 27

3.3.2.2

World Bank Policy and Guidelines on Involuntary Resettlement . . . . . . . . . . . . . . . 29

3.3.2.3

Key Aspects of International Guidelines Relevant to the Project . . . . . . . . . . . . . . 30

3.3.3

3.4

Guidelines for Developing Involuntary Resettlement Plans/Resettlement

Action Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

From Policy to Operational Planning: Adoption of the World Bank

Impoverishment Risk and Reconstruction (IRR) Model . . . . . . . . . . . . . 31

3.4.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

3.4.2

The Impoverishment Risk and Reconstruction (IRR) Model . . . . . . . . . . . . . . 31

3.4.3

Application of the IRR Model to Tangguh Resettlement . . . . . . . . . . . . . . . . . 32

3.5

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

4. The Tangguh Project Policy and Legal

Framework for Project-Affected People

35

4.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

4.2

Entitlement Matrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

4.3

Discussion of Relevant Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

4.3.1

Adat Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

4.3.2

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

4.3.2.1

The Basic Agrarian Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

4.3.2.2

The Inter-relationship of Adat and Formal Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

4.3.2.3

Land Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

4.3.3

Resettlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

4.3.3.1

Presidential Decree 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

4.3.3.2

Eminent Domain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

4.3.3.3

Project-Specific Resettlement Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

4.3.4

ADB Requirements, Indonesian Law and Project Action . . . . . . . . . . . . . . . . 48

4.3.5

Resource Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

4.3.5.1

Forest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

4.3.5.2

Cultivated Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

4.3.5.3

Marine Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

4.4

Implementation of Policy and Legal Framework for Compensation54

4.4.1

Compensation in Relation to Seismic Surveys . . . . . . . . . . . . . . . . . . . . . . . . 54

4.4.2

Compensation for Land Acquisition and Resettlement . . . . . . . . . . . . . . . . . . 54

4.4.2.1

Consultations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

4.4.2.2

Agreed Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

4.4.2.3

Eligibility for Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

4.4.2.4

Agreed Compensation for 1999 Land Acquisition and Resettlement . . . . . . . . . . . 57

Contents

iii

4.4.2.5

Refining Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

4.4.2.6

Key Compensation Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

4.4.2.7

Additional Recognition and Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

4.4.2.8

Compensation for Trees, Plants and Sago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

4.4.2.9

Compensation for Marine Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

4.4.2.10

Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

4.4.2.11

Summary of Compensation Provided to Clans Relinquishing Hak Ulayat

Land Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

4.4.3
4.5

Compensation for Possible Future Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Implementation of Resettlement Specific Agreements . . . . . . . . . . . . 66

4.5.1

1999 Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

4.5.2

Further Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

4.5.2.1

Cemeteries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

4.5.2.2

Sacred Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

4.5.2.3

Land Boundaries Between Tanah Merah Baru and Saengga . . . . . . . . . . . . . . . . . . . 68

4.5.2.4

Settlement Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

4.5.2.5

Handover Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

4.5.2.6

Post-Project Ownership of Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

4.6

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

5. The Resettlement-Affected Communities:

Environment, Demography, Productive Activities
and Sources and Levels of Income
71
5.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

5.2

The Biophysical Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

5.3

Socio-economic Profile of Resettlement-Affected Villages . . . . . . . . . . 73

5.3.1

Recent History of Sumuri Settlement Patterns . . . . . . . . . . . . . . . . . . . . . . . . 73

5.3.2

The Sumuri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

5.3.3

Village Leadership and Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

5.3.4

Family and Household Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

5.3.5

Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

5.3.6

Vulnerable Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

5.3.7

The Village Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

5.3.8

Village Housing, Facilities and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

5.4
5.4.1

iv

Livelihood Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Agriculture and Forest Resource Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

5.4.1.1

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

5.4.1.2

Agriculture Status in Resettlement-Affected Communities . . . . . . . . . . . . . . . . . . . 80

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

5.4.1.3
5.4.2

Harvesting of Forest Produce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Harvesting of Marine Produce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

5.4.2.1

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

5.4.2.2

Fishing Status in Resettlement-Affected Communities . . . . . . . . . . . . . . . . . . . . . . 83

5.4.2.3

Gathering of Marine Produce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

5.4.3

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

5.4.4

Skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

5.5

Baseline Income and Employment Levels of the

Resettlement-Affected Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

5.6

Baseline Education in the Resettlement Villages . . . . . . . . . . . . . . . . . . 95

5.7

Baseline Health in the Resettlement Villages . . . . . . . . . . . . . . . . . . . . . 96

5.7.1

Primary Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

5.7.2

Malaria, Dengue Fever, Japanese Encephalitis and Filariasis . . . . . . . . . . . . . 97

5.7.3

Water and Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

5.7.4

STD Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

5.7.5

Health Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

5.8

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

6.

Impoverishment Risks and Livelihood Restoration

Strategies for the Tangguh Resettlement Program 101

6.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

6.2

Assets Foregone by Resettlement-Affected Communities. . . . . . . . . . 102

6.3

Access to Natural Resources at the Resettlement Sites . . . . . . . . . . . 103

6.3.1

Tanah Merah Baru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

6.3.2

Onar Baru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

6.4
6.4.1

Risk Assessment for the Tangguh Project Resettlement Program . . . 106

Generic Resettlement Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

6.4.1.1

Risks of Homelessness and Loss of Access to Village Infrastructure . . . . . . . . . . 106

6.4.1.2

Risk of Landlessness and Loss of Access to Productive Natural Resources . . . . . 106

6.4.1.3

Risk of Joblessness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

6.4.1.4

Risk of Marginalization or Downward Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . 117

6.4.1.5

Risk of Morbidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

6.4.1.6

Risk of Loss of Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

6.4.1.7

Risk of Food Insecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

6.4.1.8

Risks of Community Disarticulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

6.4.2

Specific Resettlement Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

Contents

6.5
6.5.1

Homelessness and Loss of Access to Common Village Infrastructure. . . . . 121

6.5.2

Landlessness and Access to Natural Resources. . . . . . . . . . . . . . . . . . . . . . . 122

6.5.3

Joblessness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

6.5.4

Marginalization or Downward Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

6.5.5

Increased Morbidity or Health Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

6.5.6

Food Insecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

6.5.7

Community Disarticulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

6.6

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

7.

Public Consultation and Disclosure

7.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

7.2

Public Consultation and Disclosure Plan . . . . . . . . . . . . . . . . . . . . . . . . 127

7.3

Community Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

7.4

Community Consultations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

7.5

Consultations Related to Site Selection, Land Acquisition and

Compensation and Resettlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

127

7.5.1

Site Selection for Resettlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

7.5.2

Land Acquisition and Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

7.5.2.1

Initial Discussions with the Local Government . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

7.5.2.2

Initial Consultations and Socialization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136

7.5.2.3

Negotiation Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136

7.5.3
7.6

Resettlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136

Implementation of Land Acquisition and Resettlement Agreements . . 137

7.6.1

Compensation for Trees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

7.6.2

Land Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

7.6.3

Cemetery Access and Maintenance Agreement . . . . . . . . . . . . . . . . . . . . . . 138

7.6.4

Sacred Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

7.7
7.7.1

Consultations Related to Village Layout, House Design and Allocation . 139

Village Layout and House Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

7.7.1.1

Tanah Merah Baru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

7.7.1.2

Onar Baru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

7.7.1.3

Saengga and Onar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

7.7.2

House Allocation `. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

7.7.3

Allocation of Agricultural Lands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

7.7.4

Ownership and Operation of Public Infrastructure and Utilities `. . . . . . . . . 141

7.8
7.9

vi

Overview of Restoration Strategies and Actions . . . . . . . . . . . . . . . . . . 121

Linkages with Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

Linkages with NGOs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

7.10

Grievance Tracking and Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

7.11

Public Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

7.12

Disclosure of the LARAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

7.12.1

Disclosure of the Compliance LARAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

7.12.2

Disclosure of the Implementation LARAP . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

7.12.3

Project Consultations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

7.13

Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

8.

Village Design and Relocation

8.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

8.2

The Resettlement of Tanah Merah Village . . . . . . . . . . . . . . . . . . . . . . 150

8.2.1

149

Tanah Merah Baru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

8.2.1.1

Village Design and Layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

8.2.1.2

House Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

8.2.2
8.3

Onar Baru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

The Host Communities Saengga and Onar . . . . . . . . . . . . . . . . . . . . . 158

8.3.1

Saengga . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

8.3.2

Onar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

8.4

Contracting Procedures and Construction Sequence . . . . . . . . . . . . . 163

8.5

Physical Transfer of the Tanah Merah Community . . . . . . . . . . . . . . . . 163

8.5.1

Overview of Relocation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

8.5.2

Implementation of Village Move . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

8.6

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

9.

Livelihood Restoration and Development

9.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

169

9.2

A Theoretical Framework for the Reconstruction of Resettlers

Livelihoods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
9.3

Restoration of Natural Resource-based Livelihoods and Income

Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
9.3.1

Agroforestry Development Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

9.3.1.1

Program Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

9.3.1.2

Component Activity Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

9.3.1.3

Implementation of Agricultural Development Plan (YR2002-2004) . . . . . . . . . . . . 176

9.3.1.4

 esettlement-Affected Community Participation Rates and Economic

R
Returns from Agricultural Development and Intensification . . . . . . . . . . . . . . . . . 180

9.3.1.5

Expected Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

Contents

vii

9.3.2

Fisheries Access and Development Program . . . . . . . . . . . . . . . . . . . . . . . . . 182

9.3.2.1

Program Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

9.3.2.2

Component Activity Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

9.3.2.3

Implementation of Fisheries Access and Development Program (YR20022004) . . 186

9.3.2.4 Resettlement-Affected Community Involvement and Economic Returns from

the Fisheries Access and Development Program . . . . . . . . . . . . . . . . . . . . . . . . . . 187
9.3.2.5
9.3.3
9.4

Expected Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

Hunter-Gathering from Forest and Marine Resources . . . . . . . . . . . . . . . . . . 190

Savings and Loans and Small Enterprise Development . . . . . . . . . . . . 190

9.4.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190

9.4.2

Savings/Loan Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

9.4.3

Small Enterprise Development Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

9.4.4

Implementation of Savings/Loan and SED Activities (YR20022004) . . . . . 191

9.5

9.5.1
9.6

Vocational Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

Training and Employment of Resettlement-Affected Communities . . . 192

9.6.1

Training and Employment Role in Income Restoration . . . . . . . . . . . . . . . . . 192

9.6.2

Resettlement-Affected Communities Workforce . . . . . . . . . . . . . . . . . . . . . 193

9.6.3

Resettlement Program-Related Employment . . . . . . . . . . . . . . . . . . . . . . . . . 194

9.6.4

Employment in Village Construction for Resettlement-Affected Villages . . 195

9.6.4.1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

9.6.4.2

Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

9.6.4.3

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

9.6.5

Employment During LNG Plant Construction . . . . . . . . . . . . . . . . . . . . . . . . 198

9.6.5.1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198

9.6.5.2

Mentoring and Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

9.6.5.3

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

9.6.5.4

Income Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

9.6.6

Employment during LNG Plant Operations . . . . . . . . . . . . . . . . . . . . . . . . . . 202

9.6.6.1

Overview of LNG Plant Operations Workforce Requirements . . . . . . . . . . . . . . . . 202

9.6.6.2

Employment During Plant Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

9.6.6.3

Income Flow from LNG Plant Operations-Related Employment . . . . . . . . . . . . . . . 202

9.6.7 Training and Development to Promote Participation in Alternative

Employment Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

9.6.8

viii

Summary of Employment and Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204

9.7

Estimated Income Flows From Livelihood Restoration and

Development Projects for Resettlement-Affected Villages . . . . . . . . . 204

9.8

Risk Analysis for Key Restoration Activities. . . . . . . . . . . . . . . . . . . . . 211

9.9

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

10. Social Services and Community Cohesion

213

10.1

The Social Dimension of Resettlement. . . . . . . . . . . . . . . . . . . . . . . . .

213

10.2

Pre-Move Social Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

10.2.1

Preserving Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

10.2.2

Social Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215

10.2.3

Preparing the Community for Resettlement . . . . . . . . . . . . . . . . . . . . . . . . . 215

10.3

Post-Move Social Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216

10.3.1

Food Security and Transitional Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216

10.3.2

Leadership and Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218

10.3.3

Facilities Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218

10.3.4

Social Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218

10.3.5

On-going Community Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

10.3.6

Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

10.3.7

Vulnerable Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220

10.4

Resettlement-Affected Community Links to Bay-level and

Regional Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221

10.4.1

Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221

10.4.2

Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222

10.4.3

Managing Project-Induced Social Change . . . . . . . . . . . . . . . . . . . . . . . . . . . 223

10.4.4

Diversified Growth Strategy (DGS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224

10.4.5

The Birds Head Alliance (2002-2005) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225

10.5

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

11. Implementation of the Resettlement and

Livelihood Reconstruction Programs

227

11.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227

11.2

Organizational Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228

11.2.1

Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228

11.2.2

Resettlement Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228

11.2.2.1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228

11.2.2.2

Individual Roles and Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232

11.2.2.3

Advisory Panel on Resettlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

11.3

Program Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

11.3.1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

11.3.2

Design and Construction of Host Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . 234

11.3.3

Village Facilities Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234

11.3.4

Village Governance and Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235

Contents

ix

11.3.5

Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235

11.3.6

Fisheries Access and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

11.3.7

Savings/Loan and Small Enterprise Development Program . . . . . . . . . . . . . 238

11.3.8

Vocational Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

11.3.9

Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

11.3.10

Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

11.3.11

Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

11.3.12

Monitoring and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

11.4

Linkages to Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

11.5

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241

12. Budget

243

12.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243

12.2

Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243

13.

Monitoring and Evaluation

249

13.1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249

13.2

Use of Monitoring and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250

13.3

Use of Indicators in Monitoring and Evaluation . . . . . . . . . . . . . . . . . . 250

13.4

Internal Monitoring and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . 252

13.5

External Monitoring and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . 254

13.5.1

Socio-economic Surveys of Resettlement-Affected Communities . . . . . . . . 254

13.5.2

External Monitoring and Evaluation Team . . . . . . . . . . . . . . . . . . . . . . . . . . . 255

13.5.3

Completion Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255

Appendices

257

4.1. . . . . . . . . . . . . . . . .
Key Law and Regulations Relating . . . .
to Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition
and Resettlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257

1.

Land Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

2.

Spatial Layout. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260

3.

Location Permit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260

4.

Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

4.2

Land Acquisition Documentation: The 1999 Agreements . . . . . . . . . 263

1.

The Plant Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263

2.

The Resettlement Site at Tanah Merah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266

3.

Agreements Relating to Trees, Plants and Sago . . . . . . . . . . . . . . . . . . . . . . 268

5.1

Survey Questionnaire. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271

8.1

Housing, Facilities and Utilities Development at Tanah Merah Baru . . 289

8.2

Housing, Facilities and Utilities Development in Onar Baru. . . . . . . . . 291

8.3

Housing, Facilities and Utilities Development in Saengga . . . . . . . . . . 291

8.4
Detailed Plan for the Physical Relocation of the Tanah Merah
Community from Tanah Merah to Tanah Merah Baru and Onar Baru. . 293
1.

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293

2.

Background Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293

3.

Moving Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294

4.

Packing and Moving Household Belongings . . . . . . . . . . . . . . . . . . . . . . . . . 295

5.

Provision of Food Support During the Move . . . . . . . . . . . . . . . . . . . . . . . . . 296

6.

Health, Safety and Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296

7.

Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297

8.

Social Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297

9.

Environmental Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298

10.

Coordination Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298

11.

Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

12.

Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

13.

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301

Plates

311

Contents

xi

xii

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

List of Figures
Chapters
Figure 1.1

Location of Tangguh LNG Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Figure 1.2

Location Map of Land Acquisition and Resettlement Activities. . . . . . . . . . . . 6

Figure 2.1 Location of the Tangguh Project in Berau and Bintuni Bays of the

Birds Head Peninisula, Papua. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Figure 2.2

Tangguh Project Land Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Figure 2.3 Extent of Marine Safety Exclusion Zones associated with the

Tangguh LNG Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Figure 4.1 Boundaries of Sumuri Tribes Clan Land Holdings . . . . . . . . . . . . . . . . . . . . . . 56

Figure 5.1

Distribution of Income in Resettlement-Affected Villages by Sector. . . . . . . 88

Figure 5.2 Distribution of Village Agricultural Income by Activity, Tanah Merah

and Saengga Village . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Figure 5.3 Distribution of Village Fishing Income by Activity in

Resettlement-Affected Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Figure 5.4 Distribution of Total Household Income by Quintile in

Resettlement-Affected Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Figure 5.5 Distribution of Household Income Levels in Resettlement-Affected

Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Figure 5.6 Sector Average Household Income by Quintile in

ResetllementAffected Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Figure 5.7 Inter-Village Comparison of Average Household Income by Quintile

for Tanah Merah, Saengga and Onar Villages. . . . . . . . . . . . . . . . . . . . . . . . . . 94

Figure 5.8 Inter-Village Comparison of Average Per Capita Household Income

by Quintile for Tanah Merah, Saengga and Onar. . . . . . . . . . . . . . . . . . . . . . . 94

Figure 5.9 Educational Attainment of Adult Population (18 years of age) of

Resettlement-Affected Communities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Figure 5.10 Participation Rates in Education for Children (aged 6-18 yrs) for

Resettlement-Affected Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Figure 6.1

Tanah Merah Baru Location Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

Figure 8.1

Zoning Concept Utilized in Village Layout and Design . . . . . . . . . . . . . . . . . 150

Figure 8.2 Spatial Layout of Tanah Merah Baru Village. . . . . . . . . . . . . . . . . . . . . . . . . . 153

Figure 8.3 Model Resettlement House Constructed at Saengga Base Camp . . . . . . . . . 155
Figure 8.4 Planar View of House (as constructed). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Figure 8.5 Spatial Layout of Onar Baru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Figure 8.6 Spatial Layout of Saengga Village . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Figure 8.7 Proposed Layout of Onar Lama. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Figure 8.8 House Design for Onar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Figure 8.9 Construction Schedule for Tanah Merah Baru . . . . . . . . . . . . . . . . . . . . . . . . 164
Figure 8.10 Construction Schedule for Onar Baru. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Figure 9.1 Implementation Schedule of Livelihood and Income Restoration

Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

Figure 9.2 Income Curve from Displacement to Reconstruction . . . . . . . . . . . . . . . . . . 171

List of Figures

xiii

Figure 9.3

Past and Predicted Income Curve for Resettlement-Affected Villages. . . . . 172

Figure 9.4

Vegetable Gardening Area Developments in Tanah Merah Baru. . . . . . . . . . 178

Figure 9.5 Predicted Labour Requirements for LNG Plant Construction . . . . . . . . . . . . 198
Figure 9.6

Model for Village Income by Sector for Resettlers from Tanah Merah. . . . . 208

Figure 9.7

 odel for Total Village Income by Sector for Resettlers from

M
Tanah Merah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208

Figure 9.8

Model for Village Income by Sector, Saengga Village. . . . . . . . . . . . . . . . . . 209

Figure 9.9

Model for Total Village Income by Sector, Saengga Village . . . . . . . . . . . . . 209

Figure 9.10 Model for Village Income by Sector, Onar Village . . . . . . . . . . . . . . . . . . . . . 210
Figure 9.11 Model for Village Income by Sector, Onar Village. . . . . . . . . . . . . . . . . . . . . 210
Figure 11.1 Organizational Structure during Village Construction and Relocation. . . . . 229
Figure 11.2 Organizational Structure of Integrated Social Program

PostResettlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230

Figure 11.3 Activity Schedule for Agricultural Development in

Resettlement-Affected Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

Figure 11.4 Activity Schedule for Fisheries Access and Development in

Resettlement-Affected Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238

Appendices
Attachment 1 Packing Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
Attachment 2 Sample Moving Label . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
Attachment 3 House Allocation Map Tanah Merah Baru. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
Attachment 4 Tide Charts May-June-July 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307

xiv

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

List of Tables
Executive Summary
Table 1

Summary of Involuntary Resettlement Impacts on Project Affected People. . . . . . . . xxvi

Table 2

Entitlement Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxvii

Chapters
Table 1.1

Summary of Involuntary Resettlement Impacts on Project-Affected People. . . 4

Table 1.2

Project Affected Population. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Table 1.3

Summary of Project Affected Land and Resources. . . . . . . . . . . . . . . . . . . . . . 7

Table 1.4

Resettlement Program Implementation Schedule. . . . . . . . . . . . . . . . . . . . . . . 8

Table 2.1

Screening of Alternative LNG Plant Sites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Table 2.2

Qualitative Comparison of Short List Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Table 3.1 Tangguh Project IRR Risk Intensity and Risk Reversal Strategy for

Resettlement-affected Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Table 4.1

Entitlement Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Table 4.2 Comparative Analysis of ADB Policy and Government of Indonesia

Legislation Pertaining to Involuntary Resettlement. . . . . . . . . . . . . . . . . . . . 49

Table 4.3

Project Acquisition of Clan Landholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Table 4.4

Estimated Clan Release of Marine Resource Rights. . . . . . . . . . . . . . . . . . . . . 64

Table 4.5 Calculation of Percentage Entitlements based on Loss of Natural

Resource-Based Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Table 4.6 Summary of Compensation Provided to Clans Relinquishing Hak Ulayat

Land Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Table 5.1

Household Characteristics in Resettlement-Affected Communities. . . . . . . . 76

Table 5.2

Village Facilities and Services in Resettlement-Affected Villages . . . . . . . . . 79

Table 5.3

Household Ownership of Fishing Boats in Resettlement-Affected Villages. . . 85

Table 5.4 Prawn Harvesting by Resettlement-Affected Villages (Nov 2000

Oct 2001) Labour Inputs and Productivity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Table 5.5 Vocational Skills of Working Age Population (1855 yrs) in

Resettlement-Affected Communities, based on data collected 20012002. . . 87

Table 5.6 Employment Structure of Adult Population (18-55 years old) of

Resettlement-Affected Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Table 5.7

Key Health Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Table 5.8 

Maternal and Child Heath Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Table 5.9

Indicators of Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Table 6.1

Assets and Resource Access/Use Foregone by Tanah Merah . . . . . . . . . . . . 103

Table 6.2 Impoverishment Risk, Assets/Resources Foregone and Restoration

and Development Strategies for Tanah Merah Households Moving to

Tanah Merah Baru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Table 6.3

Impoverishment Risk, Assets/Resources Foregone and Restoration and

Development Strategies for Tanah Merah Households Moving to Onar Baru 110

Table 6.4 Impoverishment Risk, Assets/Resources Foregone and Restoration and

Development Strategies for the Saengga Community . . . . . . . . . . . . . . . . . 113

Table 6.5 Impoverishment Risk, Assets/Resources Foregone and Restoration and

Development Strategies for the Onar Community. . . . . . . . . . . . . . . . . . . . . 115

Table 7.1 Chronological Account of Tangguh LARAP-Community Consultations,

YR19992004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

List of Tables

xv

Table 7.2

Agenda of TMRC-Project Resettlement Team Meeting, 7th June 2004. . . . . 130

Table 7.3 Public Disclosure of Key Resettlement Activities to the Tanah Merah

Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

Table 7.4 Public Disclosure of Key Resettlement Activities to the Saengga

Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

Table 7.5 Public Disclosure of Key Resettlement Activities to the Onar Lama

Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Table 9.1 

Allocation of Fruit Trees to Tanah Merah Baru and Onar Baru

Households . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

Table 9.2

Comparision of Household Agricultural Strategies in Berau Bintuni Bay . . . 181

Table 9.3 Predicted Trends in Estimated Gross Income per Household from

Prawn Harvesting in Resettlement-Affected Villages . . . . . . . . . . . . . . . . . . 188

Table 9.4

Potential Workforce in Resettlement-Affected Communities. . . . . . . . . . . . 193

Table 9.5 Resettlement Program-Related Wage Employment for

Resettlement-Affected Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

Table 9.6

Skills Training for Tanah Merah Villagers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

Table 9.7 Targeted and Actual Local Employment Rates in Resettlement-Related

Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

Table 9.8

Household and Village Income from Tanah Merah Baru Construction Jobs. . 197

Table 9.9

Household and Village Income from Onar Baru Construction Jobs . . . . . . . 197

Table 9.10

Household and Village Income from Saengga Construction Jobs . . . . . . . . 197

Table 9.11 Composition of LNG Construction Workforce. . . . . . . . . . . . . . . . . . . . . . . . 198

Table 9.12 
 Minimum Hiring Targets for Each Category of Employment by Region

of Origin for\ LNG Plant Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

Table 9.13 
 Estimated LNG Plant Construction Phase Rates of Employment for

Resettlement-Affected Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

Table 9.14  Estimated LNG Plant Construction Phase Income Flows for

Resettlement-Affected Communities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

Table 9.15

Estimated Operational Workforce Requirements for the LNG Plant. . . . . . . 202

Table 9.16 Targets for Progressive Localization of the LNG Plant Operational

Workforce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

Table 9.17 Assumptions for Eligibility to Participate in Sectoral Activity. . . . . . . . . . . 205

Table 10.1 Potential Post-Resettlement Social Issues and Impacts for

Resettlement-Affected Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

Table 11.1

Summary of Resettlement Personnel by Phase (FTEs) . . . . . . . . . . . . . . . . . 231

Table 11.2

Schedule of Milestones for Saengga Renovation Project . . . . . . . . . . . . . . . 234

Table 12.1 Summary of Land Acquisition and Resettlement Action Plan Budget,

YR19992009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244

Table 12.2 Detailed Land Acquisition and Resettlement Action Plan Budget,

YR19992009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

Table 13.1

World Bank and IFC M&E Guidelines for Resettlement. . . . . . . . . . . . . . . . . 250

Table 13.2 Monitoring and Evaluation Indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252

Appendices

xvi

Table 1

Resident Population Growth in Tanah Merah Village. . . . . . . . . . . . . . . . . . . 294

Table 2

Safety and PPE Procurement to Facilitate Village Move. . . . . . . . . . . . . . . . 297

Table 3

Staff Requirements for Management of Village Move. . . . . . . . . . . . . . . . . . 299

Table 4.

BP and Contractor Staff Requirements to Support Village Move . . . . . . . . . 300

Table 5.

Equipment and Material Requirements to Support Village Move . . . . . . . . . 300

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Acronyms and Indonesian Terms

A&D

Access and Development a Tangguh Project implementation unit responsible

for infrastructure developmentincluding development of resettlement-affected
villagesthat was active between YR2002-2004. Thereafter, Project re-organization led
to separation of LNG plant construction activities and resettlement activities with the
former continuing under the Early Works Program and resettlement-related activities being
integrated into the Tangguh Integrated Social Program.

adat

local and traditional customs, laws and dispute resolution systems used in many parts of
Indonesia

ADB

Asian Development Bank

AMDAL

Analisis Mengenai Dampak Lingkungan Integrated Environmental and Social Impact

Assessment. The AMDAL has three components, namely the assessment (ANDAL),
the mitigation plans (RKL) and the monitoring and compliance plan (RPL). An AMDAL
describes the entire process including the ANDAL, RKL and RPL. The AMDAL serves to
identify and evaluate potential environmental and social impacts generated by a proposed
project and to develop appropriate management and monitoring programs to prevent,
eliminate or minimize negative impacts and maximize positive impacts.

ANDAL

Analisa Dampak Lingkungan literally Environmental Impact Analysis

ARCO

Atlantic Richfield Corp, Inc.

BAL

Basic Agarian Law (of Indonesia), 1960

BAPERKAM

Badan Perwakilan Kampung legislative arm of village government

Bappeda

Badan Perencanaan Pembangunan Daerah (Local Development Planning Board)

BHA

Birds Head Alliance name used to describe a private sector/public sector alliance
(referred to as a Global Development Alliance, or GDA, in USAID parlance) that brought
together USAID, BP, the University of Papua, local and international NGOs and other
development agencies in developing and implementing programs across seven sectors
in the Bird's Head of Papua from 20022005. The BHA was seen as an activity that
supported the Diversified Growth Strategy (DGS).

BMR

PT Bintuni Mina Raya a commercial trawling company operating in the Bay; also
referred to as WIMRO

BPMIGAS

Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas the National Upstream Oil and
Gas Implementing Agency, the legal Government of Indonesia partner in the Tangguh
Project

BPN

Badan Pertanahan Nasional the National Land Agency within Indonesia

BPR

Bank Perkreditan Rakyat a credit bank providing services to local communities

BRI

Bank Rakyat Indonesia a state enterprise bank

CAP

Community Action Plan the DAV support program approach to faciliating communitydriven development projects in Directly Affected Villages

CEMSED

Centre for Micro and Small Enterprise Dynamics, University of Satya Wacana (Central
Java) research institution that focuses on the development of small and medium
enterprises

CEPPS

Acronym describing the core set of principles guiding Tangguh Project implementation of
socio-economic development activities. Acronym refers to Consultation, Empowerment,
Partnership, Participation, Sustainability

CPR

Community Productive Resources

Acronyms and Indonesian Terms

xvii

xviii

Dandim

Komando Distrik Militer Military District Command

DAV

Directly Affected Village term used to describe nine villages which, for various reasons,
were identified as directly affected by the development of the Project. The ISP DAV
recognition program is providing development assistance to these villages in an effort to
mitigate negative impacts and/or promote socio-economic development.

DGS

Diversified Growth Strategy a strategy that promotes the use of income from one
industry and location (the Tangguh Project) to drive growth in many sectors and industries
across a broad region (the Bird's Head Peninsula and Papua). The strategy has been
adopted by regency and provincial governments in Papua and is also supported at the
national level. Development agencies and ISP/Tangguh support the DGS by providing
support for various sectoral programs including revenue management, spatial planning,
strengthening of governance, Papuan business empowerment, and civil society
strengthening. The Tangguh Project is also implementing workforce recruitment policies
that prioritize local hires and limit impacts of the non-local workforce upon Project-area
communities.

DID

Development-Induced Displacement

DIDR

Development-Induced Displacement and Resettlement

DPRD

Dewan Perwakilan Rakyat Daerah local parliamentary body

EPC

Engineering, Procurement and Construction general term to describe the tendering of

contracts for engineering- and construction-related activities

FFS

Farmer Field School

FIRMA

Firma Irian Djaja, a Papua-based construction firm to whom the Onar Baru Construction
Project and the Saengga Renovation Project contracts were awarded

GIS

Geographical Information System

GOI

Government of Indonesia

hak ulayat

Indonesian term describing a local community's traditional rights to natural resources

HBS

Health Baseline Survey

HSE

Health, Safety and Environment operational unit within BP projects concerned with
establishment and maintenance of health, safety and environmental standards

IADB

Inter-American Development Bank

IFC

International Finance Corporation

IRR

Impoverishment Risks and Reconstruction model an internationally recognized

approach to analysis and planning to avoid, mitigate, or otherwise address the
impoverishment risks associated with physical, environmental, social and economic
impacts of major project developments

ISP

Integrated Social Program. ISP refers to an implementation unit within the Tangguh
Project and the social-economic development programs being managed by the unit. There
are currently 15 ISP programs all of which contribute to the broad goal of enhancing and
broadening positive social impacts associated with the Project and avoiding or mitigating
negative social impacts.

ISS

Integrated Social Strategy former name for the Tangguh Project's Integrated Social
Program in use between 20012004

Kabag

Kepala Bagian General title for Division Head within government administration

Kakan Sospol

Kepala Kantor Urusan Sosial dan Politik Head of the Local Office for socio-political
affairs

Kakandepnaker

Kepala Kantor Departemen Tenaga Kerja Head of Local Office of the Department of
Manpower

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Kapolres

Kepala Kepolisian Resort Regency Police Headquarters/Chief

KJP

The construction contractor to whom the bid for construction of the Tangguh LNG plant
has been awarded

Kopermas

Koperasi Peran Kerja Masyarakat a community cooperative; in this document, the term
refers to a community fishing cooperative previously operational in the Bay

KSP

Kelompok Simpan Pinjam a village-level micro-saving initiative typically established in

remote villages without access to more traditional banking services

LA

Land Acquisition

LARAP

Land Acquisition and Resettlement Action Plan the Tangguh Project Resettlement
Action Plan (RAP) describing the involuntary resettlement impacts of the Project

LCT

landing craft transport

LNG

liquefied natural gas

M&E

monitoring and evaluation

NGO

non-governmental organization

OECD

Organisation for Economic Co-operation and Development

PAP

Project-Affected People

PERTAMINA

Perusahaan Pertambangan Minyak dan Gas Bumi Negara the Indonesian state oil and
gas company

Plasma

Name of transmigration settlement located close to Tofoi village

Posyandu

Pos Pelayanan Terpadu a village-level integrated maternal and child health care unit

PSC

Production Sharing Contract

PTD

Participatory Technology Development

PTJO

Panata-Thiess Joint Operations the contractor for construction of Tanah Merah Baru.
PTJO represents a joint operation bringing together an Indonesian and an Australian
construction company

Puskesmas

Pusat Kesehatan Masyarakat a district-level public health centre providing basic health
services to the population

Puskesmas
Pembantu

Pusat Kesehatan Masyarakat Pembantu a supporting unit to a puskesmas

PSAL

Papuan Special Autonomy Law

RAP

Resettlement Action Plan

RK

Rukun Keluarga smallest government-recognized administrative unit within a village

RKL

Indonesian acronym for Rencana Pengelolaan Lingkungan (Environmental Management

Plan), a component of the AMDAL that sets out the plans to mitigate a project's
environmental and social impacts

RPL

Rencana Pemantauan Lingkungan Environmental Monitoring Plan, a component of the

AMDAL that sets out the plans to monitor a project's compliance with the RKL

SED

Small Enterprise Development

Sekwilda

Sekretaris Wilayah Daerah (Secretary to the local government)

Acronyms and Indonesian Terms

xix

xx

SRDC

Saengga Reconstruction and Development Committee a forum, comprising members

of the Saengga village community, that was elected by the Saengga village community
to represent the Saengga village community in their interactions with the Tangguh
Project, primarily but not restricted to addressing issues and concerns pertaining to the
Resettlement Program

SUPM

Sekeloh Usaha Perikanan Menengah a middle-secondary school dedicated to

development of the fisheries sector

TMB

Tanah Merah Baru the site and newly constructed settlement to which 101 Tanah
Merah households elected to move

TMRC

Tanah Merah Resettlement Committee a forum, comprising members of the Tanah

Merah village community, that was elected by Tanah Merah village community members
to represent the Tanah Merah village community in their interactions with the Tangguh
Project, primarily but not restricted to addressing issues and concerns pertaining to the
Resettlement Program

TOR

Terms of Reference

UNCEN

Universitas Cenderawasih The Cenderawassih University based in Jayapura, the capitol

of Papua

UNDP

United Nations Development Program

UNIPA

Universitas Negeri Papua The University of Papua based in Manokwari, Papua

URS

An international consultancy firm providing services to the private and public sectors in
developed and developing countries

USAID

United States Agency for International Development

VEDC

Vocational Education Development Centre, a Java-based organization providing vocational

training services

WIMRO

Local name for PT Bintuni Mina Raya, a fishing company operating in the Bintuni area

WB

World Bank

YPMD

Yayaysan Pengembangan Masyarakat Desa a Papua-based NGO working in community

development

YPPWI

Yayasan Pengembangan Prakarsa Wirausaha a Papua-based NGO with interests

focused on micro-finance and micro-enterprise development

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

EXECUTIVE SUMMARY

Land Acquisition and Resettlement

Action Plan
Tangguh Liquefied Natural Gas Project
Papua, Indonesia

Scope of Land Acquisition and Resettlement

1. The Tangguh Liquefied Natural Gas (LNG) Project is being developed in
Berau and Bintuni Bays on the Birds Head Peninsula of Papua, Indonesias
easternmost province, approximately 3,200 km east of Indonesias capital
of Jakarta. The Project will extract natural gas from large offshore reservoirs
and pipe it to an LNG plant for conversion to LNG after which the LNG will
be exported (by tanker) to markets in the Asia Pacific region and beyond. The
Project will require construction of offshore drilling and production platforms,
submarine gas transmission pipelines and an on-shore LNG processing plant
with associated support facilities (port, airstrip, accommodation). Construction
commenced in 2004 and is scheduled to be completed in 2008. Based on
current reserves and an initial two-train capacity, the operational lifespan of the
LNG plant will be over 40 years.
2. Prior to BPs involvement in the Project, ARCO and British Gas were engaged
in exploration phase activities. Where these activities were terrestrial, survey of
transect lines required felling of forest trees and crops (i.e., sago). Subsequent
commitment to Project development led to a site selection process which
concluded that the optimal site was located on the southern shore of Bintuni
Bay in an area occupied by Tanah Merah village. Subsequently, consultation,
negotiation, and agreement with the clans holding rights to the land and
communities potentially affected by resettlement led to Project acquisition of
two tracts of land. A 3,266-ha plot of land was acquired for the LNG site and
a 200-ha plot was acquired to support the resettlement of the Tanah Merah
community. Finally the imposition of a marine safety exclusion zone around

 The term train describes units that purify and liquefy gas into LNG

Executive Summary

xxi

offshore platforms, submarine pipes and adjacent to the LNG plant may affect
various stakeholders including commercial fisheries and artisanal fishermen.
3. Table 1 presents a summary of involuntary resettlement impacts.
4. The Project has developed a Land Acquisition and Resettlement Action Plan
(LARAP) to address its involuntary resettlement impacts. The objectives of the
LARAP are to achieve resettlement with development and thereby ensure
that resettled households achieve better livelihoods than they would have if
resettlement had not taken place.
B

Policy Framework
5. The Tangguh Project has designed its LARAP with the aim of complying with
both ADBs Involuntary Resettlement Policy (1995) and the World Bank Groups
Operational Directive 4.30. The three key elements of the ADB policy on
involuntary resettlement are: (i) compensation to replace lost assets, livelihood
and income; (ii) assistance for relocation, including the provision of relocation
sites with appropriate facilities and services and (iii) assistance for rehabilitation
to achieve at least the same level of well-being with the project as without it.
6. The Tangguh Project has significant involuntary resettlement impacts and has
thus been categorized as a Category A project requiring development of a
full resettlement action plan. The Projects LARAP has been developed with
reference to the ADBs Handbook on Resettlement: A Guide to Good Practice
and IFCs Handbook for Preparing a Resettlement Action Plan.

Entitlement
7. Using ADB policies referred to above, the Project has identified the following
Project-Affected groups: (i) those affected by exploration phase seismic work;
(ii) people impacted generally by the land acquisition (primarily the three clans)
and (iii) the resettlement-affected communities (i.e. those physically relocated
and the host villages, Tanah Merah, Saengga and Onar).
8. Compensation for felling of productive crops (i.e., sago) and forest trees during
the establishment of transect lines for exploration activities was provided by
ARCO and British Gas to affected communities and clans. Table 2 provides an
entitlement matrix for people affected by land acquisition and the resettlementaffected communities. Eligibility was defined by reference to socio-economic
censi implemented in the resettlement-affected villages in 2001 and 2002.

Socio-economic Background
9. Socio-economic surveys of the resettlement village and host villages were
conducted in 2001 and 2002. The survey involved full enumeration of all
households resident in the villages. The surveys: (a) provided socio-economic
information that has been included in the LARAP; (ii) established a baseline
against which the success of the LARAP can be measured and (iii) formed the
basis of defining eligibility to receive compensation and/or benefits.

xxii

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Consultation, Participation and Disclosure

10. The key objective of the public consultation and disclosure process is to
ensure awareness, support and participation of the Project-Affected People
in planning and implementing activities associated with Project development
and resettlement. The Project engages in continuous consultation with the
resettlement-affected communities. This occurs through the establishment
of formal mechanisms such as village committees, with interest groups
established around sectoral program implementation, and on an informal basis
through continuous interaction with the affected communities, the latter being
facilitated by the establishment and residence of a Resettlement Unit in the
midst of the resettlement-affected communities.
11. As per ADB requirements, the summary and full Land Acquisition and
Resettlement Action Plan (LARAP) will be disclosed. In addition, an Indonesian
language summary of the LARAP has been distributed to resettled-affected
households. The summary provides information on resettlement impacts,
entitlements, compensation, livelihood restoration programs and schedules.

Grievance Procedures
12. In situ residence of the Resettlement Unit has allowed continuous access and
consultation and provided a vehicle for on-the-spot resolution of grievances. As
described in the Land Acquisition and Resettlement Action Plan, the Project is
implementing a formal grievance tracking and resolution procedure in 2005.

Livelihood Restoration
13. As described above, the general objective of the Land Acquisition and
Resettlement Action Plan is to achieve resettlement with development
ensuring that affected households achieve better livelihoods than they
would have if resettlement had not taken place. To achieve this objective the
resettlement plan describes restoration and development programs for the
main components of local livelihood strategies, namely agriculture, fisheries and
micro-enterprise. The primary target group of these programs is the resettled
households.
14. Agriculture: Resettled households retain traditional mechanisms to utilize clan
lands distant from new settlements. The agriculture program initially focuses on
restoration activities including land division and allocation and the establishment
of vegetable and field crop and agroforestry gardens in the vicinity of the
resettlement villages. Benefit packages including agricultural tools, seed and
fruit tree seedlings will be provided to every household. Further development
of agriculture systems will consider market gardening, livestock, and estate
cropping based on interest from households.
15. Fisheries: The harvest and sale of prawns represents the main source of cash
income for households. The fisheries program initially focuses on restoration
activities including access to fishing grounds and availability of fishing
equipment. Supporting activities include the support of boat construction
and distribution of motors. Subsequently increased access to more distant
traditional fishing grounds lying to the east of the LNG facility will be facilitated

Executive Summary

xxiii

through provision of boats to bypass the safety exclusion zone of the LNG
facility and development of an access track connecting the main resettlement
village to the eastern fishing grounds. In addition a range of development
interventions including diversification of markets, post-harvest processing of
marine produce, and access to other markets will be pursued.
16. Micro-enterprise: The program will support savings and micro-enterprise
development as a means of: (i) ensuring that the short-term benefits brought
by the Project (i.e., wage labour) serve as a catalyst for sustainable livelihood
development, and (ii) supporting diversification of livelihood strategies.
H

Employment
17. Employment: Employment of resettlement-affected villagers will be prioritized
during construction of resettlement and host villages. Opportunities for LNG
construction phase employment will be provided to at least one member of
every household of the resettlement-affected villages.
18. Vocational Training: Vocational training initiatives were implemented to support
household participation in construction. From 2006-2009, Resettlement will
support the participation of approximately 15 people/year in selected vocational
training opportunities within the regency and the Birds Head of Papua.

Implementation Framework
19. The Integrated Social Program Unit of the Tangguh Project will be the Executing
Agency of the Land Acquisition and Resettlement Action Plan. Within this
Unit, a Resettlement Unit has been established to manage implementation
(compensation, resettlement, livelihood restoration). Construction of
resettlement and host villages is managed by the Project, and contracts for
construction were awarded to preferred contractors.

Budget
20. The total budget allocated to implementation of the Land Acquisition and
Resettlement Action Plan in the resettlement-affected villages from 1999 to
2009 is US$31,126,451. Land acquisition and compensation is the largest
line item representing 70.8% of the budget. Initiatives aimed at achieving
resettlement with development represent 9.8% of the budget. The Tangguh
Project finances the full budget.

Implementation Schedule
21. The Land Acquisition and Resettlement Action Plan will be implemented from
1999 through 2009. A detailed implementation schedule for the resettlementaffected villages is incorporated into the resettlement plan. The LARAPs key
phases are:
(a) 1999
initial

in principle agreements on land relinquishment and

resettlement;
(b) 2002
detailed

agreements regarding entitlement for resettlement and

host villages;

xxiv

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

(c) 2003-2004 construction of replacement settlements;

(d) 2004
physical

relocation of community;
(e) 2004-2009

implementation of livelihood restoration programs.
L

Monitoring and Evaluation

22. The Resettlement Unit will be responsible for internal monitoring of
resettlement plan implementation. An external monitoring and evaluation
team will review implementation on an annual basis. Such reviews will be
supported by socio-economic surveys. A baseline survey was conducted in
2001-2002. Further surveys will be implemented every two years following
physical relocation (i.e., 2005, 2007, 2009). In 2009 the external M&E team will
implement a Completion Audit.

Executive Summary

xxv

Table 1 Summary of Involuntary Resettlement Impacts on Project Affected People

Category

Type of Loss/ Impact

Temporary Impacts
Communities or Clans
Tomu/Ekam
Weriagar/Mogotira
Tofoi
Otoweri
Saengga
Tanah Merah

Forest and cultivated productive plants felled between 1996-98 to

facilitate the implementation of seismic surveys by BG and ARCO

Permanent Impacts
Land Owners - Clans
Wayuri

Relinquishment of 1,866 ha of land, forest and associated marine

resources for LNG site

Sowai

Relinquishment of 900 ha of land, forest and associated marine

resources for LNG site
Relocation of sacred sites

Simuna

Relinquishment of 700 ha of land, forest and associated marine

resources for LNG site

Resettlement Villages
Communities

Community infrastructure
meeting hall
places of worship (3x)
primary school
cemetery
sporting facilities (volleyball, soccer field)
Area for expansion of settlement
Additonal cost for operating new infrastructure and services

Households

Access to forest (timber, non-timber forest products)

Access to sago
Access to shoreline
Access to shore marine resources
Access to fishing grounds
Access to cultivable land
Cultivated productive trees and perennial crops
Subsistence production
Housing
Kiosks

Host Villages

xxvi

Communities

Adverse impacts on host population stemming from resettlement

Households

Adverse impacts on host population stemming from resettlement

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 2 Entitlement Matrix

Type of
Loss
Eligibility
criteria

Entitlement
Holders of
Hak Ulayat

Community Use

Individual
households

Comment

Sowai, Wayuri and

Simuna clans with
recognized adat/hak
ulayat rights to
affected resources

Project-affected
communities
including
communities affected
by exploration
phase seismic
work, resettlementaffected communities
and communities
and commercial
enterprises potentially
affected by marine
safety exclusion
zones

Households identified
as resident in Tanah
Merah by Project
2001 census
Households identified
as resident in
Saengga by Project
2002 census

Loss of
settlement
land

Negotiated cash and

in-kind compensation
package for landselling clans based on
clan rights and land
boundaries agreed
between clans and
surveyed in March
1999; cash payment
distributed to clan
leaders

Replacement land
for settlement
including community
infrastructure and
utilities (Refer
Appendix 8.18.3 for
details pertaining to
resettlement villages of
Tanah Merah Baru and
Onar Baru)

500m2 house plot /

household in Tanah
Merah Baru and Onar
Baru replacement
village (APs choice).
Project to support
and cover costs for
applications for land
title for plots (in name
of husband and wife)
Preparation of empty
house plots for future
village expansion in
Tanah Merah Baru

Total replacement
settlement area
100 ha for Tanah
Merah Baru
6 ha for Onar Baru

Loss of forest
land

Negotiated cash and

in-kind compensation
package for landselling clans based on
clan rights and land
boundaries agreed
between clans and
surveyed in March
1999; cash payment
distributed to clan
leaders

Access to replacement
forest land through
self-initiated negotiation
with Simuna clan (Tanah
Merah Baru) and Agofa
clan (Onar Baru)

Cash compensation
was calculated

A. LAND

B. COASTAL AND MARINE RESOURCES

Marine
resources
affected by
establishment
and
enforcement
of marine
safety
exclusion zone
for LNG site
and associated
facilities, i.e.,
jetty

Development
foundation with
Project endowment
fund of US$2 million
to generate revenue
stream for three landselling clans
Endowment
distributed among
clans based on
proportional losses as
described in Table 4.5

Facilitate access to
alternative fishing
grounds through
provision of boats to
clans as described
in Section 9.3.2,
Fisheries Access and
Development Program

Facilitate restoration
of fisheries-based
livelihood activities
through the
Fisheries Access and
Development Program
described in Section
9.3.2

Executive Summary

xxvii

Table 2 Entitlement Matrix (cont.)

Type of
Loss
Marine
resources
potentially
affected by
intensification
of use (from
resettlers)

Entitlement
Holders of
Hak Ulayat

Community Use
Mitigate potential
intensification by
facilitating clans access
to alternative marine
resources through
provision of boats. Refer
to Fisheries Access and
Development Program
described in Section
9.3.2

Individual
households
Mitigate potential
intensification by
facilitating resettled
households access
to alternative marine
resources by provision
of motors, etc. Refer to
Fisheries Access and
Development Program
described in Section
9.3.2

Marine fishing
grounds
affected by
restriction of
use (for subsea pipelines,
utilities,
platforms)

Analysis demonstrates
that current
development plans will
not affect artisanal and
commercial fisheries

C. HOUSES AND INDIVIDUALLY OWNED ATTACHMENTS

Loss of house
structures

Replacement house
constructed by project
at APs preferred
replacement village.
Assistance with
packing and physical
relocation of
household goods

Assistance with
demobilisation
of all structures
and subsequent
transport to
APs preferred
replacement village

xxviii

Loss of
additional
infrastructure
(fences, animal
pens, kiosks,
etc)

Assistance with
demobilisation of
all structures and
subsequent transport
to APs preferred
replacement village

Loss of wells
& bores

No privately owned
wells and bores

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Comment

Table 2 Entitlement Matrix (cont.)

Type of
Loss

Entitlement
Holders of
Hak Ulayat

Community Use

Individual
households

Comment

D. GARDENS, PLANTS AND CROPS, FRUIT TREES 1

Loss of
cultivated tree
crops (fruit
trees, estate
crops)

Not applicable

As for individual
households

Cash compensation
to owners of trees on
a per tree basis.
Rates in accordance
with the Decree of
Bupati of Manokwari,
No. 213, 1997
Provision of
replacement
asset (grafted fruit
trees) to resettled
households to
facilitate restoration
of production

Plants not on the

inventory list will
not be eligible for
compensation.
An inventory of all
productive crops
(including fruit trees)
was conducted
jointly by the project
and Tanah Merah
residents in March
1999.
Agreement pertaining
to provision of
compensation
specifies that
trees planted after
the inventory will
not be eligible for
compensation.

Loss of sago

Negotiated lump sum

cash compensation
(IDR75 million)

Agreement by
project to provide
communities with
access to sago areas
lying to east of plant
Path around LNG
terminal site to
connect Tanah Merah
to sago stands (to
be constructed by
project)
Project supply of
boats (one per clan) to
enable marine access
around LNG jetty to
sago stands.
Access to sago
proximate to
resettlement
sites through own
negotiation with
Simuna clan (Tanah
Merah Baru) and
Agofa clan (Onar
Baru)
Agricultural
diversification
programs to reduce
reliance on sago
refer to Section
9.3.1

Not applicable

Original lump sum

compensation
defined in Minutes of
Agreement dated 26
May 1999.
Agreement for
access to sago area
defined in 8 August
2002 Agreement
Commitment
for construction
of access path
bypassing the LNG
site to allow access
to sago stands as
described in 8 August
2002 Agreement
Other commitments
as defined by this
RAP.

Development of house
garden and agroforestry
plots in resettlement
sites as described in
Section 9.3.1

Analysis demonstrates
only usufructuarry use
of garden plots; beyond
initial clearing, no
development of garden
plots

Loss of garden
plots

1 Detailed records of the measurement and inventories of crops and trees in Tanah Merah are retained by the Project

Executive Summary

xxix

Table 2 Entitlement Matrix (cont.)

Type of
Loss

Entitlement
Holders of
Hak Ulayat

Community Use

Loss of forest
plots

Loss of field
and vegetable
crops

xxx

Not applicable

As for individual
households

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Individual
households

Comment

Access to replacement
forest land through
self-initiated negotiation
with Simuna clan (Tanah
Merah Baru) and Agofa
clan (Onar Baru)

Analysis demonstrates
only usufructuary use
of forest plots with
reversion to clan based
communal ownership
after cultivation;
some plots planted
to fruit trees implying
extended usufructuary
use; compensation
provided for fruit trees
as described above

Cash compensation
to owners of crops on
a per plant basis
Rates for medium
and large crops in
accordance with the
Decree of the Bupati
of Manokwari, No.
213, 1997
Rates for plants
categorized as small
to be one-third Bupati
Decree rates for
medium plants
Provision of
replacement asset
(crop and vegetable
seed) to resettled
households to
facilitate restoration
of production

Plants not on the

inventory list will
not be eligible for
compensation
An inventory of all
productive plants
(including crops) was
conducted jointly by
the project and Tanah
Merah residents in
March 1999
Entitlements are
defined in Minutes
of Payment of
Compensation for
Vegetation of 22 July
1999, with minor
addition of 24 July
1999
The Minutes identify
eligible owners of
plants (individuals, a
church, village and
hamlet entities)
Agreement pertaining
to provision of
compensation
specifies that
crops planted after
the inventory will
not be eligible for
compensation

Table 2 Entitlement Matrix (cont.)

Type of
Loss

Entitlement
Holders of
Hak Ulayat

Community Use

Individual
households

Comment

E. FOREST AND FOREST RESOURCES

Loss of
cultivated
forest species

Loss of forest

Loss of access
to non-timber
forest products
& hunting
grounds

Project will provide

access to or
compensation for
Agathis spp. stands
based upon operational
and safety requirements
of the LNG facility
Hak Ulayat payment
for trees felled for
construction of Tanah
Merah Baru and LNG
site. Compensation
rates based on
Governorial decree and
forest inventory.

Access to replacement
forest land through
self-initiated negotiation
with Simuna clan (Tanah
Merah Baru) and Agofa
clan (Onar Baru)

Access to replacement
forest land through
self-initiated negotiation
with Simuna clan (Tanah
Merah Baru) and Agofa
clan (Onar Baru)

Access to replacement
forest land through own
negotiation with Simuna
clan (Tanah Merah Baru)
and Agofa clan (Onar
Baru)

Access to replacement
forest land through own
negotiation with Simuna
clan (Tanah Merah Baru)
and Agofa clan (Onar
Baru)

F. COMMUNITY FACILITIES AND INFRASTRUCTURE

Loss of
meeting hall

Project provision of
meeting hall

Loss of
primary school

Project provision of
kindergarten and
primary school for 6
grades; provision of
teacher housing

Loss of
sporting
facilities (volley
ball, soccer)

Project provision of
volleyball courts (3x),
football field (1x) and
basketball court (1x at
high school)

Loss of places
of worship

Project provision of
one mosque, one
Catholic church and
one Protestant church
in Tanah Merah Baru

Project also provided

lower secondary
school and dormitory

Executive Summary

xxxi

Table 2 Entitlement Matrix (cont.)

Type of
Loss

Entitlement
Holders of
Hak Ulayat

Community Use
Project provision of
centralised bore,
pump and water
storage facilities for
replacement villages.
Project provision
of reticulated
water supply to all
replacement houses.
Project recruitment
and provision of a
Village Facilities
Supervisor for 18
months following
relocation to oversee
operation of water
systems and develop
village capacity to
manage and operate
system
Training and capacitybuilding to village
management and
selected villagers
for management,
operations
(maintenance, cost
recovery) and repair
of the water supply
system.

Loss of wells,
bores

G. CULTURAL SITES
Loss of access
to sacred sites

Loss of access
to cemetery

xxxii

Development
of Sacred Sites
Agreement allowing
for relocation of key
sacred sites (Sowai
clan)
Protection of Simuna
and Agofa clan sacred
sites on resettlement
sites
Development of
Cemeteries Access
and Maintenance
Agreement providing
access on important
religious days

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Individual
households
Reticulated water
supply connection
to each replacement
house.
Project provision of
health and hygiene
training to women
APs.

Comment

Table 2 Entitlement Matrix (cont.)

Type of
Loss

Entitlement
Holders of
Hak Ulayat

Community Use

Individual
households

Comment

H. LOSS OF LIVELIHOOD AND INCOME

Loss of
subsistence/
income
from coastal
resources &
fisheries

Provision of boat and

outboard engine (one
per clan) to facilitate
access to more distant
resources

Provision of 15HP
outboard motors to all
households owning or
acquiring a boat

Loss of
subsistence/
income from
agriculture

Project provision
of transitional food
package for one year
following relocation
allowing garden
establishment and
production
Project agricultural
restoration program
(house garden
and agroforestry
systems) to promote
restoration and
intensification of
agriculture. Refer
Section 9.2.2
Access to
replacement forest
land through own
negotiation with
Simuna clan (Tanah
Merah Baru) and
Agofa clan (Onar
Baru)

Loss of
subsistence/
income
from forest
resources

Project provision
of transitional food
package for one year
following relocation
allowing garden
establishment and
production
Access to
replacement forest
land through own
negotiation with
Simuna clan (Tanah
Merah Baru) and
Agofa clan (Onar
Baru)

Loss of
subsistence/
income
from forest
resources
during
relocation

Households provided
with meals during
relocation

Executive Summary

xxxiii

1. Introduction
1.1

The Tangguh Project

BP, will develop the Tangguh Liquefied Natural Gas (LNG) Project in the Berau and Bintuni Bays
on the Birds Head Peninsula of Papua, one of Indonesias easternmost provinces, approximately
3,200km east of Indonesias capital, Jakarta (Figure 1.1).
The Tangguh Project comprises three license blocks (Berau, Wiriagar and Muturi) located in the Bay.
The development and operation of the LNG Project is being led by BP, as operator in a partnership,
in conjunction with the Government of Indonesia (GOI) through Production Sharing Contracts
regulated by BPMIGAS, the National Upstream Oil and Gas Implementing Agency. The Project will
extract natural gas from large offshore reservoirs and pipe it to an LNG plant for conversion to LNG.
The Project will require construction of offshore drilling and production platforms, submarine gas
transmission pipelines and an onshore LNG processing plant with associated support facilities (port,
airstrip, accommodation). The LNG will be exported (by tanker) to markets in the Asia Pacific and
beyond. Based on current reserves and an initial two-train capacity, the operational life-span of the
LNG plant will be over 40 years.

 Project development and implementation will occur in both the Berau and the Bintuni Bay. In this
document the term Bay is utilized to describe the overall region encompassing both bays.
 The Tangguh Liquefied Natural Gas (LNG) Project encompasses three Production Sharing Contracts
(PSCs) in the Berau and Bintuni Bays. The Project or Tangguh LNG (as it will henceforth be referred
to in this document) consists of both the pro-rated reserves in the PSCs and the planned (LNG)
facility and associated pipelines and production platforms. BP, as the operator of the Project, has
37.16% of reserves, with the balance shared by China National Offshore Oil Corporation (16.96);
Mitsubishi Corporation-INPEX Corporation (16.30%); Nippon Oil Corporation and Japan National Oil
Corporation (12.23%); Kanematsu Gas (10.00%) and LNG Japan Corporation (7.35%).
 The GOI Oil and Gas Law of 2002 mandates that the regulatory function for PSCs previously held
by PERTAMINA, the National Oil Company, be given to a new body, BPMIGAS (Badan Pelaksana
Kegiatan Usaha Hulu Minyak dan Gas--the National Upstream Oil and Gas Implementing Agency), the
legal Government of Indonesia partner in the Tangguh Project.
 The term train describes units that purify and liquefy gas into LNG.

1 Introduction

Figure 1.1 Location of Tangguh LNG Project

The key benefit of the Tangguh Project will be the increased revenue flows to the national and the
provincial governments through Production Sharing Contracts and the Papuan Special Autonomy
Law (PSAL). Specifically, the GOI and the PSC partners will share the revenue stream generated
from marketing of LNG. Under the PSAL the GOI Project-derivedrevenue will be shared between
Papua (70%) and the Indonesian central government (30%) for the first 25 years, after which it will
be shared equally. Thus Papua will receive a significant and continuous flow of production sharing
revenue for the operating life of Project.
The Project also has the potential to generate significant benefits that may accelerate the social
and economic development of the Birds Head Peninsula. The Project will boost the local economy
through purchasing local goods and hiring local labour during plant construction and operation. The
Project will boost the regional economy by generating significant revenue for re-investment.
As with all economic development activities, the Tangguh LNG Project will have both positive and
negative environmental and socio-economic impacts on and around the Bay and more broadly, the
Birds Head of Papua. The Project has prepared an Integrated Environmental Impact Statement
(AMDAL) for the Indonesian government that identifies and describes these impacts and identifies
ways in which they will be managed. Specifically the Tangguh AMDAL commits the Project to: (a)
addressing environmental concerns associated with LNG plant construction and operations; (b)
mitigating the adverse impacts associated with the Project, and (c) developing environmental, socioeconomic and cultural programs for communities in the Bay. The AMDAL was approved in 2002.
The Project is concerned to ensure that the benefits of Tangguh are experienced as widely as possible.
Accordingly in an attempt to maximize the socio-economic and cultural benefits to the Birds Head,
the Project has developed an Integrated Social Program (ISP). The ISP includes:

 AMDAL is the Indonesian acronym for Integrated Environmental and Social Impact Assessment.
The AMDAL has three components, namely the assessment (ANDAL), the mitigation plans (RKL)
and the monitoring and compliance plan (RPL). Preparation of the Project AMDAL commenced
in mid-2000 with a broad range of activities including detailed studies, public consultations and
hearings and external reviews and was concluded with the submission of a 7,000-page document
to the Indonesian government in 2002. The document was reviewed and approved by a government
committee comprising relevant ministries (including the State Ministry for the Environment, the
Ministry of Energy and Mineral Resources and the Ministry of Forestry) on October 28, 2002.

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

 A Resettlement Program focused on the resettlement of Tanah Merah village

and the host villages of Saengga and Onar;

A Community Action Plan guided and implemented by the communities

resident in the Directly Affected Villages ;

Project-implemented sectoral program assistance for communities in the Bay

and beyond (water and sanitation, health, education, micro-finance, small- and
medium-scale enterprise development);
Workforce management and vocational training;
Integrated community based security;
Establishment of a Bay-level community forum and heritage fund;
Capacity-building with government and civil society (as implemented through

the Diversified Growth Strategy and including good governance training with
local government, planning and fiscal impact management, spatial planning for
the Birds Head, etc.).
The ISP will be a catalyst for sustainable socio-economic development (e.g., commerce and
enterprise) in and around the Bay and the Birds Head region.
1.2

Land Acquisition and Resettlement Action Plan (LARAP)

1.2.1

Introduction
The Tangguh Project recognizes that various project activities may result in the loss of land, resources
and means of livelihood and social support systems of people in the Bay. Accordingly the Project has
utilized the Asian Development Bank (ADB) and World Bank (WB) involuntary resettlement policies
and guidelines for identifying Project-Affected People and addressing Project impacts.
Under ADB guidelines, where a Project will have major impacts on 200 or more people it is
categorized as a Category A project requiring a full resettlement plan. The Tangguh Project is a
Category A project.

1.2.2.

Land Acquisition and Resettlement Action Plan (LARAP)

This document specifically addresses the involuntary resettlement impacts of the Project. Both
Indonesian law and international best-practice regarding involuntary resettlement require projects
involving land acquisition and population displacement to develop a Land Acquisition and Resettlement
Action Plan (LARAP). Under Indonesian regulations the preparation of the Integrated Environmental
Impact Statement (AMDAL) requires inclusion of a LARAP if people are to be relocated. Similarly
gaining approval and support from international financial institutions such as the ADB, WB or other
multilateral lending and funding organizations requires development of a LARAP containing detailed
resettlement action and monitoring plans.

 During the AMDAL process the Project categorized nine villages as Directly Affected using various
criteria including implementation of exploration phase seismic work,necessity of physical relocation,
loss of land, proximity to the proposed development and the possibility of future impacts based on
possible offshore development locations.The term Directly Affected is Project- and context-specific
and should not be interpreted as implying that the identified villages experience (in the past, present
or future) resettlement-related impacts. Appendix C of the RKL describes the Recognition Program
for Directly Affected Villages.

1 Introduction

In 2002, the Project submitted the AMDAL to the Indonesian government. The AMDAL contained
a Project LARAP in the Environmental Management Plan (RKL). The AMDAL LARAP (subsequently
referred to as the Compliance LARAP) met and exceeded Indonesian standards for addressing
impacts associated with population displacement.
Nonetheless the Project is committed to achieving standards higher than those specified in the
Compliance LARAP and more in line with those advocated by international best-practice. Accordingly
the Compliance LARAP has been further developed and refined, leading to the production of an
Implementation LARAP as described in this document. In addition, the Implementation LARAP
also incorporates:
Additional information regarding the resettlement process (e.g., land acquisition,

relocation, income restitution and development);

Additional consultations with the resettlement-affected communities;
Additional work, studies and plans for resettlement-affected communities

developed in the 30 months since submission and approval of the Compliance

LARAP;
Activities initiated and/or completed (e.g., village construction, relocation of the

Tanah Merah community, training and recruitment, income restitution, etc.).

This document presents the Projects Implementation Land Acquisition and Resettlement Action
Plan. The document is a key component of the Projects Integrated Social Program (ISP) document
which describes all of the Projects socio-economic development programs.
1.2.3

Resettlement Objectives
The objectives of the Projects Land Acquisition and Resettlement Action Plan are to achieve
resettlement with development and thereby ensure that resettled households achieve better
livelihoods than they would have if resettlement had not taken place.

1.2.4

Project-Affected People
Using ADB policies referred to above, and ADB criteria outlined in Section 3.2.2, the Project has
identified the following Project-Affected People:
Those affected by exploration phase seismic work;
The resettlement-affected communities (i.e. those physically relocated and the

host villages, Tanah Merah, Saengga and Onar);

People impacted generally by the land acquisition (primarily the three clans);

In accordinace with ADB policy, the Project is committed to on-going monitoring of activities and the
development of further plans with appropriate mitigation measures if necessary. For example, while
current Project assessment indicates that the establishment and enforcement of marine safety
exclusion zones will not impact commercial enterprises, the Project will continue to monitor the
situation as these zones are established and enforced.

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

1.2.5

Scope of Involuntary Resettlement Impacts

Table 1.1 presents a summary of involuntary resettlement impacts.

Table 1.1 Summary of Involuntary Resettlement Impacts on Project-Affected People

Category

Type of Loss / Impact

Temporary Impacts
Communities or Clans
Tomu/Ekam
Weriagar/Mogotira
Tofoi
Otoweri
Saengga
Tanah Merah

Forest and cultivated productive plants felled between 1996-98 to

facilitate the implementation of seismic surveys by BG and ARCO

Permanent Impacts
Land Owners - Clans
Wayuri

Relinquishment of 1,866 ha of land, forest and associated marine

resources for LNG site

Sowai

Relinquishment of 900 ha of land, forest and associated marine

resources for LNG site
Relocation of sacred sites

Simuna

Relinquishment of 700 ha of land, forest and associated marine

resources for LNG site

Resettlement Villages
Communities

Community infrastructure
meeting hall
places of worship (3x)
primary school
cemetery
sporting facilities (volleyball, soccer field)
Area for expansion of settlement
Additonal cost for operating new infrastructure and services

Households

Access to forest (timber, non-timber forest products)

Access to sago
Access to shoreline
Access to shore marine resources
Access to fishing grounds
Access to cultivable land
Cultivated productive trees and perennial crops
Subsistence production
Housing
Kiosks

Host Villages
Communities

Adverse impacts on host population stemming from resettlement

Households

Adverse impacts on host population stemming from resettlement

The LARAP briefly describes compensation for felling of trees and crops that was paid during seismic
surveys that were undertaken in 1996-1998 by Atlantic Richfield, Inc. (ARCO) and British Gas (BG).
This was prior to BPs involvement with the Project. See Section 4.4.1 for more details.
The site selection process for locating the Tangguh LNG plant resulted in the selection of a site
occupied by the Tanah Merah village community on the southern shore of Bintuni Bay. As the Project

1 Introduction

did not have recourse to eminent domain or expropriation, all land acquisition was effected through
negotiated settlement. Accordingly consultations with the Tanah Merah community and land-owning
clans were conducted to clarify Project requirements and assess the willingness of the people to
relinquish their lands and be relocated. As a result of the acquisition of land carried out by the
Project, the Tanah Merah community, the host villages of Saengga and Onar, and the land-owning
clans were recognized as incurring permanent involuntary resettlement impacts. Tables 1.2 and 1.3
summarize the Project land acquisition and resettlement impacts. Figure 1.2 presents a location map
of land acquisition and resettlement activities. This document focuses on the land acquisition and
resettlement activities with specific plans for mitigation of impacts and livelihood reconstruction.
The establishment and enforcement of marine safety exclusion zones in 2008 may impact upon
communities access to, and harvest from, selected fishing grounds. The exclusion zones are
described in Section 2.6. Measures to address impacts arising from the introduction of the exclusion
zones are described in Sections 4.4.2.9 and 4.4.2.10.
Figure 1.2 Location Map of Land Acquisition and Resettlement Activities

1.2.6

Summary Description of Resettlement Action Plan Program

The LARAP focuses on addressing the permanent involuntary resettlement impacts described
above. As outlined in Table 1.2, the Resettlement Program involves the physical relocation of the
Tanah Merah community (comprising 127 households) to two locations to the west of the village,
namely the new villages of Tanah Merah (101 households) and Onar Baru (26 households). In addition
the proximity of the new settlements to the existing villages of Saengga (94 households) and Onar
Lama (36 households) have required the Project to identify both as host communities and include
them in various aspects of the Resettlement Program.
The Resettlement Program aims to ensure resettlement with development with households
achieving better livelihoods than they would have if the resettlement had not occurred. The program
addresses the development of new settlements (including houses, public infrastructure and services)
and a livelihood reconstruction program that considers the re-establishment and development of
agriculture, fisheries, and micro-enterprise. In addition, education, vocational training, Project-related
employment, and health are being addressed.

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 1.2 Project Affected Population

Affected Population
Households
People

Affected
Communities

Nature of Project Impacts

Tanah Merah

V
 illage physically relocated from LNG plant site to
new sites close to Saengga and Onar
Loss of access to existing gardens, forest swidden
and forest resources 1
Loss of fruit trees 1
Loss of access to sago 1
Reduced/loss of access to fishing grounds within and
lying to east of marine safety exclusion zone 2
Loss of cultural property

127

654

Saengga

H
 ost village for 101 resettler households
Villagers receive upgraded public infrastructure,
housing and public utilities as offsetting measure
Provided 100 ha replacement site for Tanah Merah
Potential intensification in use of nearshore and
offshore marine resources to accommodate
resettlers
Reduced/loss of access to fishing grounds within and
lying to east of marine safety exclusion zone 2
Loss of access to some of Simuna lands released
to project for construction of LNG plant and
resettlement of Tanah Merah village with limited
impacts on harvesting of forest produce 3

94

407

Onar

Host village for 26 resettler households

Villagers receive upgraded housing and public utilities
and share access to improved public infrastructure
Potential intensification in use of nearshore and
offshore marine resources
Reduced/loss of access to forested lands in vicinity
of Onar Baru with limited impacts on agriculture and
harvesting of forest produce

28

104

1 Detailed records of the measurement and inventories of crops and trees in Tanah Merah as well as those removed from the
replacement village sites are retained by the Project.
2 H
ouseholds in both Tanah Merah and Saengga operate diversified livelihood strategies including harvesting of marine produce
(i.e., prawn
s, shell fish, etc). As such a reduction/loss of access to fisheries will impact upon the majority of households resident
in the village and as such they are already captured in the tabulation of affected households/population.
3 The area of land released for construction of the resettlement villages was little used and there has been no livelihood impact on
host villages stemming from their relinquishment and clearing. Clan owners were compensated for the loss of land and forest on
the replacement sites.

Table 1.3 Summary of Project Affected Land and Resources

Affected
Land Area

Project Component

Affected Group

LNG Plant Site

Affects land belonging to the following clans:

Wayuri clan 1,866 ha; Sowai clan 900 ha;
Simuna clan 500 ha

Tanah Merah replacement village site

Affected lands belong to the Simuna clan

100 ha

Saengga land relinquishment to

facilitate reconstruction

Affected lands belong to the Simuna clan

100 ha

Onar replacement village site

Affected lands belong to Agofa clan (resident in

Tanah Merah)

32 ha

LNG Plant marine safety exclusion zone

Resettlers from Tanah Merah will lose access

to traditional artisanal fishing grounds and
nearshore mud flats

695 ha

Subsea pipeline and platform marine

safety exclusion zones

None platforms and sub-sea pipeline are in

deep waters not subject to artisanal fishing

500m radius around each

offshore platform; 500m
either side of the pipeline

3,266 ha

1 Introduction

Table 1.4 presents the overall schedule for implementation of the Resettlement Program. In 1999
ARCO initiated the program, with consultations and agreements with the Tanah Merah community
and land-owning clans. Implementation of the agreements was delayed by the acquisition of ARCO
by BP. In late 2001, the Resettlement Program started in earnest, with implementation of socioeconomic surveys, participatory development of village layout and house design as well as sectoral
development initiatives. Construction of the new settlements in Tanah Merah Baru and Onar Baru
commenced in late 2002 and was completed by early 2004. Physical relocation of the Tanah Merah
community occurred in JuneJuly 2004. Sectoral development programs were initiated prior to the
move and will be continued until the end of the LNG plant construction period. Construction of the host
villages started after construction of resettlement villages was completed. Finally, a comprehensive
monitoring and evaluation plan has been developed with the objective of reviewing delivery of Project
commitments as well as providing recommendations for improvement as necessary. It is anticipated
that a completion audit will be conducted in 2009.
The Project will bear all the costs of the Resettlement Program and assumes primary responsibility
for its implementation.
Table 1.4 Resettlement Program Implementation Schedule

Activity

Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1. Land Acquisition and Physical Compensation

Cash compensation for land

In-kind compensation

a. Tanah Merah Baru construction

b. Onar Baru construction

c. Saengga renovation project

d. Onar Lama

Foundation

Other compensation

a. compensation for sago

b. c ompensation for productive plants at

Tanah Merah village

c. compensation for productive plants (crops and

fruit trees) - village sites

d. hak ulayat (resource rights) payments for forest

trees on LNG site and Tanah Merah Baru

Payments associated with securing land title

2. Consultation and Design of Resettlement-Affected Villages

Study

Model house development

Village consultations - TMB, Onar Baru

Village consultations - Saengga, Onar Lama

Support for physical relocation

(packing materials, catering, etc)

Transitional food support

3. Physical Move

4. Village Committees
Tanah Merah Resettlement Committee
Saengga Reconstruction and Development
Committee
Onar Development Committee

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 1.4 Resettlement Program Implementation Schedule (cont.)

Activity

Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

5. Post-Resettlement Social Support

Village facilities management and operation

a. facilities manager

b. tools and equipment

c. transitional support (fuel)

d. capacity-building village coop, maint.

Education

a. material support

b. financial support

Supporting studies and activities

Physical development of garden areas

Capacity-building

Material assistance

6. Livelihood and Income Reconstruction

a. Community Development
Agriculture

b. Community Development Fisheries Access and Development

Supporting studies and activities

Fisheries access

i. boats/motors

ii. fishing camp

Market development

Capacity-building

Savings/loan program

Small enterprise development program

c. Community Development Savings/Loans and SED

d. Community Development Vocational Training and Employment

Vocational training

Internal monitoring

Socio-economic/livelihood surveys

External monitoring

7. Monitoring and Evaluation

8. Links to LNG Construction and Operations Activities

a. Construction and Operation of LNG Facility
Offshore Platforms

Submarine Pipes
Drilling of Wells

b. Establishment and Enforcement of Safety Exclusion Zones

LNG Facility

Offshore Platforms

Submarine Pipes

1 Introduction

1.2.7

Structure of LARAP
The LARAP focuses on addressing permanent involuntary resettlement impacts. The LARAP is
presented in three blocks as follows:
Block 1 Chapters 1-6
Describes (a) the project history, context and content; (b) the policy framework and objectives
that guide the Tangguh Project Resettlement Program; (c) the legal basis for land acquisition and
compensation and resettlement; (d) a socio-economic description of the resettlement and host
communities, and (e) an analysis of the impacts of resettlement on the resettlement and host
communities.
Block 2 Chapters 7-11
Describes (a) the community consultation processes undertaken by the Project; (b) the physical
construction activities undertaken in resettlement-affected villages, and (c) the planned income
and social reconstruction strategies for resettlement-affected villages.
Block 3 Chapter 11-13
Describes (a) the implementation plan; (b) the budget, and (c) the monitoring and evaluation
framework to be used by the Project.
Together the chapters present an integrated and comprehensive description of the Tangguh LNG
Projects commitment to implementing a successful, world-class resettlement plan.

1.3

Other Relevant Studies and Reports

The following studies and investigations were undertaken as part of the LARAP preparation:
University of Papua at Manokwari (UNIPA) and the University of Queensland,

Australia Study of Agricultural Potential and Constraints of the Resettlement Site

(April-May 2002);
URS Fisheries Study (2002);
Centre for Micro and Small Enterprise Dynamics (CEMSED) Satya Wacana

Christian University, Assessment of the Potential for the Development of

Microenterprises and Microbanks in the District of Bintuni (December 2002);
URS Regional Market Assessment (February-March 2003).

1.4

Conclusion
In conclusion, this Implementation LARAP represents the Tangguh Projects commitment to
addressing involuntary resettlement impacts. The implementation plan is intended to be flexible and
responsive, with adaptation and improvement occurring in response to further studies, community
consultations, monitoring, verification and evaluation throughout the Projects duration. An adaptive
approach ensures that the Resettlement Plan described in this LARAP meets the developmental
needs and best interests of the affected communities.

10

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

2. The Tangguh Project

2.1

Project History and Context

As a Production Sharing Contractor to the Government of Indonesia (GOI), BP, together with GOI
agencies, has explored for and developed hydrocarbon resources in Indonesia for over thirty years.
To date, these ventures have discovered the equivalent of almost 9 billion barrels of oil and gas in
various regions of the country.
The Tangguh Project is located in the Berau and Bintuni Bays of the Birds Head of Papua (Figure 2.1).
The Project will be Indonesias third LNG center, joining Arun in Aceh, North Sumatra (six trains), and
Bontang in Kalimantan (eight trains). As both the LNG reserves and production levels in Arun are in
decline, Tangguh will significantly replenish Indonesias marketable LNG reserves.
In the 1990s ARCO and BG implemented a gas exploration program in the Berau and Bintuni Bays.
The first substantial gas reserves were identified with the discovery of the Weriagar Deep Field in
1994. In 1997 the super giant Vorwata gas reservoir was discovered with final delineation in 1998. A
total of six fields have been discovered to date.
The Tangguh Project is significant. Its gas fields (the largest being Vorwata and Weriagar Deep) have
certified reserves of 14.4 trillion cubic feet (tcf) and with added probable and possible reserves,
Tangguh has the potential to yield as much as 23.7 tcf of gas in total. The Tangguh LNG Project will
extract natural gas, process the gas into LNG, and transport the LNG and associated hydrocarbon
liquids to traditional markets (i.e., Japan, Korea and Taiwan) and emerging markets (i.e., China, India
and the Philippines) in the Asia Pacific and beyond.

 The term train describes units that purify and liquefy gas into LNG.
 Source: AMDAL, Executive Summary, para. 1.2.
 Source: AMDAL, Executive Summary, para. 1.2.
 The Tangguh Project has market commitments through: (i) a Sales and Purchase Agreement to supply
the Fujian Gasification Terminal in China with 2.6 mpta starting YR2007, and (ii) a Heads of Agreement
to supply SK and Posco of Korea with 1.15 mtpa.

2 The Tangguh Project

11

Figure 2.1 Location of the Tangguh Project in Berau and Bintuni Bays of the Birds Head Peninsula, Papua

INANWATAN
SUBDISTRICT

01o50

Subdistrict level

ARANDAY
SUBDISTRICT
ARANDAI
KECAMATAN
Kampung Baru

02o00'

BINTUNI
SUBDISTRICTManimeri village

Kecap
Inanwatan

Tarof

Riv
er

Weriagar/
Mogotira
villages

02o20

CERAM

Desa Tofoi
Arguni

Toweri village

02o50'

Amutu
Besar

Irarutu III
Babo

Sidomakmur village

SP1 & SP 2
Transmigrasi

Kelurahan Kokas

Desa Sisir
KOKAS
SUBDISTRICT

Asap

Simuri (Saengga) village

SEA
02 40

BINTUNI BAY

Tanah Merah village

BERAU BAY

02 30

ni
bu
m er
Te Riv

Aranday

Taroy village
Sebyar
Rejosari village

Se

Kalitami village

by
ar

Kasweri

Bintuni Town

Manunggal Karya

Tomu/Ekam villages

02o10

SP1 to SP 7
Bomberai Transmigration area

Fak-Fak

Warganusa I

Yaru village

Aroba village

Goras

Warganusa II

BABO
SUBDISTRICT

03o00

132 00

132o10'

132 20

132o30

132o40

132o50

133o00'

133o10'

133o20

133o30

133o40

10 Mil

10

20 Kilometer

133o50'

Construction of the LNG processing plant commenced in 2004. The initial Tangguh LNG Project is
for a two-train launch. The startup of the two LNG trains will occur in two phases. The first train will
be commissioned in 2007. Commissioning of the second train may occur within six months of the
first train. Initially the Tangguh Project will involve production of a maximum of 8.0 million metric
tons of LNG per year from between 1,400 to 1,500 million standard cubic feet per day (MMscfd) of
natural gas feedstock. Additionally, a maximum of up to 9,000 barrels per day (bpd) of condensate
will result. The natural gas feedstock will come from up to four offshore platforms and a total of up
to 48 wells over a 40-year production period.
Operations are scheduled to begin in 2008 and will continue until at least 2047, assuming only
two trains are in operation. Over the anticipated life of the Project, expansion of the plant may be
required in response to global energy demands. Natural gas reserves projected for the two main
natural gas fields, as well as adjacent minor fields, could support up to five LNG processing trains
(and with additional exploration, possibly eight trains). No further land acquisition or resettlement
will be necessary to accommodate these additional trains.
2.2

Project Location
The Project will be developed in the Berau and Bintuni Bays in the Birds Head Peninsula of Papua.
The Bays comprise a 200-kilometer long and 25-kilometer wide sheltered body of water that divides
the Birds Head Peninsula from the remainder of Papua. Much of the Bays shoreline has extensive
sago and nipa palm stands that extend inland for long distances. One of the worlds largest stands of
intact, old growth mangrove forest is located at the eastern end of the Bay approximately 80km from
the Project. The Tangguh LNG site comprises various ecosystems including mangrove habitat, beach
forest, swamp forest, lowland hill forest and savannah habitat. These ecosystems are consistent

 AMDAL, Executive Summary, para. 1.4.

12

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

with ecosystems found elsewhere in Papua and contain geographically widespread communities
characterized by common taxa and low endemism (species found in only one location).
The Bay environment supports a relatively small population, distributed in villages scattered along
the northern and southern shores of the Bay. This population comprises tribal groups (suku), namely
the Sumuri (southwestern section), Irarutu (southern section), Uri and Wamesa (eastern section),
Soub (northeast section), Sebyar/Kamberam (northwestern section) and Moskona (north, farther
inland). While the tribes share various commonalities, particularly in traditional customs (adat)
and rights (hak ulayat) and the relative importance placed on natural resources, they are distinct
groupings, this being most evident in the use of distinct languages. While the north and south shore
environments are different, the villages utilize similar livelihood strategies based on sago collection
and consumption, shifting cultivation with tuber crops, and/or commercial prawn harvesting.
Transport and communication services are limited, as are provision of basic government services
(education, health care, etc.). Overall, the socio-economic environment can thus be characterized as
underdeveloped.
While rich in natural resources, the Bay is not a pristine, untouched environment. Rather, commercial
extractive industries utilizing the Bays resource-rich environment have operated for several decades.
Logging companies are operational on the northern and southern shores; oil palm plantation agriculture
commenced in the 1990s, and the Bay itself has been subject to intense (and largely unrestricted)
harvesting of marine resources (i.e., fish and prawns) by commercial trawling operations and local
fishermen since the late 1980s. In addition, several areas have been settled by transmigrants
(primarily from Java) that engage in crop farming while also providing labour to the timber and prawn
industries.
Oil and gas exploration commenced during the Dutch occupation with oil being discovered near
Wasian and Mogoi in 1939 and 1941 respectively. These fields were brought into production in 1954.
Remnants of the former Dutch oil exploration on the north coast of Bintuni Bay can be found near
Bintuni. Most operations were closed before Irian Jaya became a province of Indonesia in 1976. Over
the last 20 years Bay-wide exploration for oil and gas has continued with ARCO and BG operating
in the Bay.
2.3

Project Development
The Tangguh Liquefied Natural Gas (LNG) Project is a greenfield project, meaning that existing gas
reserves are undeveloped. The Tangguh Project comprises three license blocks (Berau, Wiriagar and
Muturi) located in the Bay. These license blocks are operated in conjunction with the Government of
Indonesia through Production Sharing Contracts regulated by BPMIGAS, the National Upstream Oil
and Gas Implementing Agency. The Project will extract natural gas from large offshore reservoirs and
pipe it to an LNG plant for conversion to LNG. The LNG will be exported (by tanker) to markets in the
Asia Pacific and beyond.
Once initial construction of Project infrastructure is complete, it will comprise the following onshore
and offshore components:

 BP acquired Atlantic Richfield, Inc. (ARCO) and all of its Indonesian assets (including its stake in the
Tangguh Project) in September 2000.
 The term greenfield does not imply that the area is pristine or lacks previous development.
 The GOI Oil and Gas Law of 2002 mandates that the regulatory function for PSCs previously held by
Pertamina, the National Oil Company, be given to a new body, BPMIGAS (Badan Pelaksanaan Minyak
dan Gas or the National Upstream Oil and Gas Implementing Agency).

2 The Tangguh Project

13

Two offshore, unmanned production platforms;

One onshore LNG processing facility, consisting initially of two trains able
to deliver 8 million tons per annum (mtpa) of LNG to an export terminal and
potentially expanding to a maximum of eight trains, depending on future energy
demands and markets;

A submarine gas transmission pipeline system, connecting the offshore and

onshore facilities;

A seaport, consisting of docks and loading jetties for LNG tankers and general
cargo;

Additional infrastructure, such as workforce accommodation and offices, and

An airfield, airstrip, control center and maintenance facilities.

(Note: All infrastructure and facilities described above will be developed on the existing LNG site and
will not involve additional land acquisition and resettlement).
The LNG plant will be constructed on a 3,266 ha plot on the southern shore of the Bay. The LNG plant
and its associated onshore facilities accounts for 40 per cent of the land area acquired. The remaining
60 per cent of the land will serve as an ecological buffer zone consisting of wetlands, mangroves,
savannahs and riparian forests.
2.4

Site Selection and Consideration of Alternatives

Site selection for LNG plant construction occurred over a three-year period between 1996-1999.
Following field visits and the collection of secondary information on potential sites, a long list of
17 potential sites located within a 250-kilometer radius of the Berau license block was developed. A
feasibility evaluation of these sites (utilizing environmental, social, economic and other criteria) led
to the elimination of 13 sites leaving a short list of four sites, namely Karaka, Saengga/Tanah Merah,
Ogar Island and Kokas (Table 2.1). At this time Saengga/Tanah Merah was considered to be the
optimal site, with Kokas and Ogar as the first and second alternates.
Conceptual engineering for the three preferred sites was completed in 1996. Site data collection
was completed in 1997. Using these data, in 1997 a second site evaluation considering these sites
(i.e., Saengga, Tanah Merahwith and without resettlementOgar Island) was implemented. The
evaluation also included an additional site, Sebyar (Weriagar/Mogotira) as well as a shallow-water
offshore platform on the north shore. Kokas was dropped from consideration as a consequence of its
religious significance to local inhabitants. Table 2.2 (page 16) presents the results of this analysis.
The conclusion of the second evaluation was that the Tanah Merah site held several advantages:

It was near deep water, requiring a jetty of only approximately 1,000m;

The seabed near Tanah Merah was relatively free from sand waves and potential
sediment build-up, thereby minimizing dredging needs;

14

The mangrove fringe is very thin and in some places does not exist at all;

The shoreline bluff provides considerable protection from storms;

The presence of the savannah area reduces the need for forest clearing and

The ground is relatively dry and firm.

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 2.1 Screening of Alternative LNG Plant Sites

Site

Location

Reason For Elimination

Karakra

North coast of Berau Bay

Mogotira/Weriagar
(Sebyar)

North coast of Berau Bintuni Bays

Requires excessively long jetty to extent beyond

extensive mud flats and shallow water

Tapas

North coast of Berau Bay

Requires excessively long jetty

Saengga/TM

South coast of Berau Bintuni Bay

Ofuweri

South coast of Berau Bay

Requires excessively long jetty

Flur

South coast of Berau Bay

Requires excessively long jetty

Goras

South coast of Berau Bay

Combined with Flur site

Ogar Island

Off the south coast of Berau Bay

Kokas

South coast of Berau Bay

Siang

South coast of Berau Bay

Combined with Kokas site

Bagam

An inlet near the mouth of Berau Bay

High site preparation requirements and need for

long pipelines

Suweri Bay

Southwest tip of Fak-Fak Peninsula

High site preparation requirements and need for

long pipelines

Fak-Fak

South coast of Fak-Fak Penisula

High site preparation requirements and need for

long pipelines

Urkadin Point

On Sebakor Bay, west side of Bomberai

Peninsula

Involves extensive construction in swamps

Maiwawa

Kamrau Bay, east side of Bomberai Peninsula

Involves extensive construction in swamps

Megai

Arguni Bay, east side of Bomberai Peninsula

Excessively long pipelines required

Wariup

Sarera Bay, east coast of Birds Head

Peninsula

Involves extensive pipeline construction through

mountainous terrain

The major disadvantage of the site was the prospect of co-locating the plant immediately adjacent
to the Tanah Merah community or relocating the village (comprising approximately 110 households
at that time). As a consequence, the Project considered Saengga as the most suitable site at this
time.
While the alternative Sumuri (Saengga) village site was well removed from the nearest habitation,
it would have required a jetty to be built through approximately 1,700m of unstable wetland, and
another 1,300m of open water to reach the required sea depth for LNG tanker berthing. An offshore
sandbar would have required maintenance dredging on a long-term basis and could have presented
navigational hazards for LNG tankers. Moreover, construction at this site would have imposed greater
impacts on mangrove forests than at Tanah Merah.
Selection of the other sites was rejected for the following reasons:

Ogar Island had considerable site preparation costs and unacceptable

environmental sensitivities;

Sebyar had high site preparation costs, required hydrological controls and large
amounts of fill.

The option for the LNG plant to be located on an offshore platform was also considered. This would
have avoided all land acquisition and the need to relocate people. In the dynamic marine environment
of the Bay, this option required a level of technological intervention that increased the Project costs
and risks, while prolonging its development schedule.

2 The Tangguh Project

15

Table 2.2 Qualitative Comparison of Short List Sites

Issue

Factor

Feasibility/
Cost

Cost
($MM delta)
Physical
Suitability

Sociocultural

Environment

TM
Relocate

TM
Present

Saengga

Platform

Sebyar

Ogar

24-57

37-70

200-300

250-350

260-540

substrate

++

++

++

--

elevation 2m

++

++

++

++
0

Criteria

coastal

Access to gas

proximity

++

++

Public Safety

2 km

++

Culture

isolation

--

++

--

relocation

--

++

++

++

++

sus. comm.
development

--

++

++

+
++

Availability of
Resources

access

Religious
Areas

avoidance

++

++

++

access

++

Mangroves

avoid

++

++

--

++

minimize

++

--

++

avoid

++

++

--

minimize

++

++

--

++

++

++

++

++

--

Biodiversity
Aquatic

avoid coral
minimize

++

++

--

Community

separation

++

Commercial

access

++

exc zone/
fish rights

future
expansion

Introduced

separation

Endemic

high ground

++

--

Archeology

n/a

n/a

Transportation

People

designated
airport

++

++

++

++

Economy

Health

proximity to
plant

Security

Materials

nav. water

++

--

LNG

proximity to
deep water

++

--

navigation

++

++

++

++

++

fish access

++

distance

++

++

isolation

++

++

++

distance

++

++

isolation

++

++

++

isolation

++

future
migration

--

++

--

large tract

++

++

++

--

Conflict
Trespass

Secondary
Impacts

Migration

Encroachment

limited access
Ancillary
Facilities

isolation

++

++

future

++

++

Future
Activities

isolation

++

++

future

++

++

Pluses indicate degree to which each site satisfies criteria relative to other sites, negative signs indicate degree to which they do not.

16

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 2.2 demonstrates that the Project considered a broad array of social issues in the site selection
process including socio-cultural, economic, archeological and various secondary impacts such as
in-migration and encroachment. Technical factors led to the elimination of alternative sites such as
Ogar and Sebyar. In the case of Tanah Merah (with or without resettlement) and Saengga, social
factors provide little discrimination between sites. Tanah Merah with resettlement would positively
increase the isolation of the LNG facility from neighbouring communities. The Saengga site, with
better access, was recognized as prone to in-migration and future encroachment.
The comparative site analysis determined that the Tanah Merah site was the preferred location for
the LNG plant and tanker terminal. However it was recognized that should this site be chosen it
would be necessary for the existing community of Tanah Merah to be resettled. In order to gauge
the communitys willingness to be resettled, the Project met with the Tanah Merah community over
a period of time in 1998 and 1999. As the community indicated a willingness to be relocated, Tanah
Merah was selected as the preferred site. After BP acquired ARCO in 2000, a detailed re-evaluation
of the plant site selection process re-confirmed these conclusions.
2.5

Defining the Project Footprint

In 1999 the Project acquired two tracts of land. A 3,266 ha plot of land was acquired for the LNG site
and a 200 ha plot was acquired to support the resettlement of the Tanah Merah community (Figure
2.2, page 18). The LNG plant and associated facilities is now estimated to require approximately 500
ha only. However the rationale for acquiring a larger land area included:

Initial development plans had the plant and facilities widely dispersed over the
site thus requiring a large land area;

Security of the site;

Scope for population influx and development of proximate dwellings.

The intention is that the local population will have no access to the plant site. However at the time
of acquisition of the land, the Tanah Merah community expressed concerns regarding access to
resources in the eastern areas of the plant site. These resources include sago swamps inside the
boundary of the site, and lands, sago and fishing grounds lying outside the eastern boundary. In
particular the community felt that continued access to the sago holdings within the plant site was
important. These concerns have been addressed through commitments to facilitate marine and
terrestrial access to these areas. These commitments are outlined in Sections 4.4.2.6 and 4.4.2.7.
2.6

Offshore Works
As described in Section 2.3, the key Project components include (a) two offshore unmanned
production platforms; (b) a submarine gas transmission pipeline system connecting the offshore
and onshore facilities, (c) an onshore LNG processing facility, consisting initially of two trains able
to deliver 8 million tons per annum (mtpa) of LNG to an export terminal and potentially expanding
to a maximum of eight trains, depending on future energy demands and markets, and (d) a seaport,
consisting of docks and loading jetties for LNG tankers and general cargo.
Safety exclusion zones will be established around the offshore platforms, the submarine gas pipeline
and the onshore facility (Figure 2.3, page 19). A 500m radius zero-entry exclusion zone will be
established for the offshore platforms. An exclusion zone, in which anchoring and trawling activities
will be excluded, will apply for a distance of 500m on each side of each pipeline. Finally an offshore
zero-entry safety exclusion zone of 695 ha, will surround the seaport, including an area extending

2 The Tangguh Project

17

620m from all sides of the LNG dock, plus an area extending 120m from the Combo Dock. The
exclusion zones will be established at the start of construction activities. Hence the 695 ha exclusion
zone contiguous with the LNG facility was established in 2005.
Exclusion zones around offshore platforms and pipelines may affect the operations of the commercial
and traditional fisheries. However it is noted that commercial operations have recently ceased in
response to increased fuel prices and that local fishermen only utilize artisanal (nearshore) fishing
grounds. Accordingly it is only the 695 ha exclusion zone around the seaport facilities that will reduce
the area available to local people for harvesting of marine produce and decrease the accessibility
of fishing grounds and sago holdings lying east of the plant. As indicated above, commitments to
facilitate access to alternative fishing grounds as well as marine and terrestrial access to fishing
grounds and sago swamps lying to the east of the plant are outlined in Sections 4.4.2.6 and 4.4.2.7.
Figure 2.2 Tangguh Project Land Acquisition

2.7

Project Investment and Benefits

The Tangguh Projects initial development cost estimate is US$2 billion. The total estimated capital
investment, including operating expenses over the life of the proposed development, is US$5 billion.
This level of investment will have a major positive impact on export earnings, national tax revenues
and national contractors earnings. The investment will provide a favorable signal to the international
community regarding the viability of foreign investment in Indonesia.
The Tangguh LNG Project will also bring significant socio-economic benefits to local communities, to
the region, and to Papua as a whole. These benefits occur as a direct result of the construction and
operation of an LNG facility and also derive from implementation of a broad-based, multi-sectoral
socio-economic development program. Benefits include:

Active support for economic development and income generation activities in

the Project area;

Increased general educational and professional skill training opportunities;

Improved access to health care facilities;

 This program is described in the Projects Integrated Social Program document.

18

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Replacement of houses and community facilities at a considerably higher

standard than those currently inhabited, and

Priority in recruitment for employment opportunities created by the Project,

particularly in the construction phase for the LNG plant.

Figure 2.3 Extent of Marine Safety Exclusion Zones associated with the Tangguh LNG Plant

At a regional level, the Project will support Papuas sustainable, long-term economic development
through employment and training commitments10; local procurement commitments11; socioeconomic development programs developed and funded by the Project; and by establishment of
a forum for dialogue and development. As such the Project can help catalyze the sustainable, longterm expansion and diversification of the Papuan economy.
Production Sharing Contracts form the basis for revenue distribution between Project partners and
the government. Revenue distribution between the central and provincial governments is determined
through regional and special autonomy legislation. Under the SAL, the GOI Project-derivedrevenue
will be shared between Papua (70%) and the Indonesian central government (30%) for the first 25
years, reducing to 50% in the 26th year. While future revenue-flow projections are difficult to predict
accurately (primarily due to the volatility of the price of gas), at this time estimates are that this
income could reach around US$100 million per annum for a two train LNG Project (assuming $16/bbl
Brent oil price). It is important to note that a gap exists between the gas coming on stream and
the peak of the revenue flow. Revenue is only expected to flow once the Project attains full capacity
and the debt payments from financing of LNG plant construction are serviced (estimated to occur
in 2016).

10 See RKL Appendices B and D, Workforce Management Program, and Program for Other
Stakeholders Interests, Section 10.0.
11 Refer to AMDAL Annwx X, Program for Other Stakeholders Interests.

2 The Tangguh Project

19

Ensuring that these revenues benefit the people of Papua is a critical challenge for the province. To help
meet this challenge the Tangguh Project has recognized the need to facilitate programs and policies
that will increase human capacity in government and civil society. The Diversified Growth Strategy
(DGSone component of the Projects Integrated Social Program12) aims to pro-actively address this
concern through a partnership with various stakeholders including UNDP and USAID. The partnership
with UNDP, through the UNDP Capacity 2015 Partnership for Sustainable Development in Papua
Project, provides the Government of Papua with technical staff and financial support (matched by
the government bodies themselves). Between 2003-2005 the Tangguh Project also joined USAID in
a Global Development Alliance (GDA) known specifically as the Birds Head Alliance (BHA). The BHA
partners (i.e., USAID and various Project-contracted implementing organizations) are working on a
diverse range of issues including health; environment; civil society strengthening; local government
capacity building for good governance and transparent fiscal management; micro-credit/microfinance, and small- and medium-sized business development for Papuans. Going forward, Tangguh
is exploring the scope for further collaboration with USAID in the areas of governance, health and
education.
With prudent management and sound governance at provincial and national levels, revenues and
taxes associated with Tangguh LNG will provide valuable funds for public services (e.g., health and
education) that benefit Papua as a whole.
In addition, the Project will play a crucial role in maintaining and enhancing Indonesias position as the
worlds largest LNG exporter, and encouraging the development of Indonesias oil and gas sector.
2.8

Papuan Autonomy
In 1999, the Indonesian central government enacted legislation for decentralization thereby ushering
in regional autonomy for all of Indonesias provinces and promising an even greater degree of
autonomy (known as special autonomy) for two resource-rich provinces, namely Aceh and Papua.
In 2001, the national parliament began drafting a Law on Special Autonomy for Papua that built upon
the previous regional autonomy legislation. Provisions in the Special Autonomy Law fall into four
categories, all of which are relevant to the Tangguh Project. These are:

Creation and strengthening of public administration capacities;

Promotion of Papuan social and cultural concerns through the creation of the
Majelis Rakyat Papua (MRP; Papuan Peoples Assembly) and recognition of the
importance of traditional customs (adat);

Legal arrangements for revenue-sharing between central and provincial

governments with an increased share of revenues deriving from the exploitation
of natural resources being directed toward the province, and

Division of security responsibilities by the central and provincial governments.

Under Special Autonomy, the restructured provincial government includes the Papuan Peoples
Assembly, a body of representatives of traditional customary (adat) leaders, religious groups and
women. The goal is recognition, acknowledgement and strengthening of traditional customs (adat)
and rights (hak ulayat). Revenue sharing between the central and provincial governments will increase
dramatically.

12 Until 2004 the Integrated Social Program was referred to as the Integrated Social Strategy.

20

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

The implementation of Presidential Impress 2002-1 in 2004 led to the temporary division of Papua
into three provinces, namely West Irian Jaya, Central Irian Jaya and Papua. While subsequent interclan unrest led Central Irian Jaya to refrain from pursuing status as a separate province, West Irian
Jaya proceeded with instituting a nascent government and electing representatives to the national
legislature. In October 2004 the Constitutional Court ruled that Presidential Impress 2002-1, dividing
Papua into three provinces, was unconstitutional because it violated the specific decision-making
mechanism included in the Special Autonomy Law for determining whether Papua may be divided
into multiple provinces. Nonetheless, the Court ruled that its mandate was prospective only and that
the province of West Irian Jaya would remain in existence.
In December 2004 the President publicized the issuance of a Presidential Directive governing the
formation of the Majelis Rakyat Papua. Elections for the MRP are scheduled to be held in late 2005
and once complete will represent a key provision of Special Autonomy. The MRP will provide inputs
on candidates for governor and deputy governor proposed by the legislature and on bylaws proposed
by the legislature or the governor, and on any proposed agreements between the governor and third
parties. It seems probable that a parallel MRP will be created for West Irian Jaya and that Special
Autonomy provisions will apply fully but separately to the new province.
These changes are significant to the Tangguh Project for the following reasons:

The law transfers considerable administrative, legislative and legal authority from
central to provincial and local levels of government, thereby giving provincial and
regional administrations greater authority to create and implement development
plans.

Financial stipulations of the Special Autonomy Law state that the provincial
governments share of revenues generated by the Project will contribute
substantially to the provinces future income.

Special Autonomy legislation now requires adat and ulayat rights to be

acknowledged and respected.13

Whereas Project development occurred in the period where Papua was

considered a single province, the recent establishment of the province of West
Irian Jaya (with a capitol in Manokwari) will impact upon the way in which the
Project operates and the benefits from the Project are distributed.

While the political situation remains dynamic it is clear that increased Papuan autonomy will have a
significant impact on the general social, cultural, political and macro-economic climate within which
the Tangguh LNG Project operates.
2.9

Conclusion
The Tangguh LNG Project is a major resource development project that will yield substantial benefits
to the local communities, the Birds Head region, Papua and Indonesia as a whole. However as with
most large-scale resource extraction projects there are unavoidable adverse impacts. Chapters 1 and
2 identify Project-Affected People and the scope of impacts incurred. The most significant impact
derives from land acquisition and population resettlement activities associated with securing the
preferred LNG site.

13
The Tangguh Project has consistently respected such rights in the Project area and Papua, and will
continue to do so.

2 The Tangguh Project

21

In assessing the most appropriate location for the Project within the Bay, the Project considered
technical, economic, social and environmental criteria. Except for the need to resettle, the Tanah
Merah site was identified as the preferred location on the basis of all other relevant criteria. Following
consultations between the Tanah Merah community, the land owners, the Project and the government
an agreement was reached whereby (i) the three land-owning clans agreed to relinquish rights to the
land required by the Project, and (ii) the Tanah Merah community agreed to be resettled to new sites
proximate to the host villages of Saengga and Onar villages.
The Tangguh Project is committed to developing and implementing a Resettlement Program that
will facilitate the physical relocation of the Tanah Merah community and ensure the economic and
social reconstruction of all three resettlement-affected communities. To ensure that the Project
achieves both Indonesian and international standards in resettlement, the Project has developed this
document (the Implementation LARAP). The plans outlined in this document include a combination
of mitigation measures and development initiatives that together aim to balance the adverse impacts
of resettlement, to ensure the reconstruction of livelihoods in the three resettlement-affected
communities and to secure standards of living higher than those attained prior to Project entry (i.e.,
to achieve resettlement with development).
The resettlement of Tanah Merah is an unavoidable step in implementing the Tangguh Project. The
Project is aware of the physical and socio-economic impacts of displacement and is committed to
adhering to world-class standards in resettlement, starting with the adoption of clear policy principles
and standards for guiding the resettlement process and progressing through operational measures
and financial provisions for implementing and translating the resettlement policy into a substantial
action program. The following chapter describes the conceptual and policy framework upon which
the Tangguh Project has developed the Implementation LARAP.

22

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

3. Policy Framework For Land Acquisition

and Resettlement
3.1

Introduction
The Project is currently negotiating financing with a number of international financial institutions.
Some of these institutions require compliance with specific environmental and social policies during
the term of any financing provided by them. With respect to involuntary resettlement, ADB has
indicated that the ADBs Involuntary Resettlement Policy (1995) will be applied by them in the
context of financing the Tangguh Project. The Japan Bank for International Cooperation (JIBC) and
several of the commercial lenders have indicated that the World Bank Groups Operational Directive
4.30 Involuntary Resettlement will be applied. Accordingly, the Tangguh Project has designed its
LARAP with the aim of complying with both ADBs Involuntary Resettlement Policy (1995) and the
World Bank Groups Operational Directive 4.30.
This chapter first discusses the key components of population displacement and resettlement. It
then describes the emergence of international policies, guidelines and standards for resettlement
and specifies the policy framework and operational guidelines that the Tangguh Project has
adopted for its Resettlement Program. It highlights the key aspects of these policies that have been
incorporated into the planning and implementation of the Tangguh resettlement activities. Finally it
describes the World Bank Impoverishment Risk and Reconstruction (IRR) model, which has been
adopted as the basis for analyzing and addressing impoverishment risks faced by the resettlementaffected communities.

3.2

The Basic Concepts of Resettlement

The international guidelines and standards for resettlement, more fully described in Section 3.3,
have been developed in order to deal with the negative impacts that are associated with involuntary
resettlement and to ensure the protection of affected communities. Generally the analysis of
resettlement requires consideration of the concepts set out below.

3 Policy Framework for Project Land Acquisition and Resettlement

23

3.2.1

Involuntary Resettlement
Under ADBs policy framework, involuntary resettlement describes situations whereby the
development of a project leads to temporary or permanent social and economic impacts through:
(a) the acquisition of land and other fixed assets; (b) changes in use of land, and/or (c) restrictions
imposed on land as a result of a project.

3.2.2

Project-Affected People
ADBs Operations Manual defines the term project affected person (PAP) to include any person,
household, firm or private institution who, on account of changes that result from a project, will
have their:
(a) Standard of living adversely affected;
(b) Right, title, or interest in any house, land (including residential, commercial,
agricultural, forest, and/or grazing land), water resources, or any other moveable
or fixed assets acquired, possessed, restricted, or otherwise adversely affected,
in full or in part, permanently or temporarily, and/or
(c) Business, occupation, place of work or residence, or habitat adversely affected,
with or without displacement.

3.2.3

Physical and Economic Displacement

Displacement can be either physical, economic or both. Physical displacement occurs when people
lose their dwellings and have to move from the site where their community is located. In such
circumstances, where they maintain their cultivated lands and access to other resources they may
not be economically displaced. When a projects needs restricts peoples access to their productive
resources (cultivated land, forest areas, fishing areas, etc.) they incur economic displacement. Often
both types of displacements (i.e., physical and economic) take place simultaneously.

3.2.3.1 Restricted Access

Project needs may not only require the acquisition of land but also impose various demands and/or
restrictions upon the local population and the use of, or access to, some natural resources. Such
restrictions represent an opportunity cost for the local population. The restriction of access and
activity is considered as another form of economic displacement.
3.2.3.2 Expropriation
Expropriation takes place when the power of eminent domain is used to compulsorily purchase land
and houses and thus remove, under legal authority, the residing people who otherwise would not
relocate. The eminent domain principle is inscribed in the legal systems and land acquisition laws
of virtually all countries, and is intended for application by governments when expected benefits are
in the general public interest and no other solution can be found. As noted in Section 4.3.3.2, the
Tangguh Project did not have legal recourse to use eminent domain.
3.2.3.3 Free Land Purchase
Increasingly, projects rely on free negotiation to acquire land, and are reluctant to utilize eminent
domain compulsory expropriation even when such recourse is available. They therefore rely

24

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

on willing buyerwilling seller purchase transactions. This provides for an open transaction and
negotiation process for the price and circumstances of the sale.
Resettlement that takes place as a result of a salepurchase land transaction has the effect of
transferring rights to the purchaser, and is guided by the legal arrangements made at the time of
the purchase. The willing seller-willing buyer transaction assumes the existence of land markets
or other opportunities for the productive investment of the revenue from sales, and fair price for
the transferred assets. In the absence of land markets, the buyer must provide an appropriately
structured compensation package enabling the sellers of land and assets to restore their livelihood
or improve it over the levels prevailing at the time of sale. Usually such arrangements also include
provisions for effecting the physical transfer of the population.
3.2.3.4 Entitlement
A range of measures comprising compensation, transfer assistance, income substitution, income
restoration and relocation which are due to affected people, depending on the nature of their losses,
to restore their economic and social base.
3.2.3.5 Resettlement
Resettlement occurs when people are required to relocate their place of habitat and/or their
productive activities to different sites. Resettlement may be voluntary or involuntary.
Resettlement has three distinct phases or social processes:

Displacement of people from the site of their residence or productive activities;

Transfer of the people to a different site, and

Reconstruction of livelihoods and communities.

3.2.3.6 Resettlement with Development

Resettlement with development occurs when the economically and physically displaced population
sees significant improvement over previous standards of living. This includes restoration of previous
levels of living, but goes further by deliberately using the opportunities of change and development
created through resettlement to enhance the conditions of resettlers at their new habitat.
Resettlement with development takes time and does not occur suddenly and simultaneously with
the act of physical relocation to the new location. However, to ensure success, the basic premises
for resettlement with development must be established and planned for before the displacement
process.
3.2.3.7 Rehabilitation and Reconstruction
After relocation, rehabilitation or reconstruction refers to activities intended to restore the
resources and capacities lost by displaced people to enable them to resume their productive
activities, income streams and patterns of life at a level at least equal to that before the project.
Rehabilitation measures include restoration of access to public facilities, infrastructure and services,
and to cultural property and common property resources. Measures to mitigate loss of access to
cultural sites, public services, water resources, grazing or forest resources include establishment
of access to equivalent and culturally acceptable resources and income earning opportunities. Such
measures must be determined in consultation with the affected communities, whose rights may
not be formally recognized in national legislation. Where people are seriously affected by the loss

3 Policy Framework for Project Land Acquisition and Resettlement

25

of assets, incomes and employment, compensation solely for lost assets may not be adequate to
restore their economic and social base. Such people will be entitled to rehabilitation measures for
restoring incomes and living standards.
3.2.3.8 Host Population
Displaced people usually relocate to areas already inhabited by other communities. Often resettled
groups are relocated next to existing communities, and sometimes even within them, a process
described as in-fill relocation. The concept of host population refers to the people who live within, or
in the immediate vicinity of, the area to which physically displaced people will resettle. The resulting
increase in the people-to-land area ratio is likely to increase pressure on available natural resources
and may include other negative effects on the host communities. Therefore, the LARAP must
include comprehensive mitigation measures to protect and benefit the host population.
3.2.3.9 Resettlement Plan (RP)/Resettlement Action Plan (RAP)
A Resettlement Plan (or Resettlement Action Plan) defines a projects involuntary resettlement
objectives and strategy. It also represents the projects commitment to the project-affected people
and financing institutions. The content of a resettlement plan varies depending on the nature of the
project, its impacts and the size of the affected populations. Further details of what is required are
provided in Section 3.3.3.

3.3

International Policies and Standards for Resettlement

3.3.1

Tangguh Project Policy and Standards for Involuntary Resettlement

The Tangguh Project has adopted a policy framework that embodies internationally accepted
principles and best practices. The internationally recognized policy documents on which the present
policy framework for Tangguh relies are:
(a) The Asian Development Banks Policy on Involuntary Resettlement (1995);
(b) The World Banks Operational Policy on Involuntary Resettlement (June 1990) ;
(c) The Organisation for Economic Co-operation and Developments Guidelines on
Involuntary Resettlement for Aid Agencies of OECD Countries ;
(d) The IFC (International Finance Corporation) Handbook for Preparing a
Resettlement Action Plan;
(e) The relevant World Bank/IFC safeguard policies and guidelines referenced
in the Statement of Principles dated June 2003, (referred to as the Equator
Principles).
Reference was also made to the Asian Development Banks Operational Manual Section F2
Involuntary Resettlement (OM Section F2 ) insofar as it provides additional guidance and definitions

 OD4.30 was revised by World Bank in 2001. For World Bank purposes, it has now been replaced
by Operational Manual Operational Policies OP4.12 (December 2001) Involuntary Resettlement;
Operational Manual Operational Policies OP4.12 Annex A December 2001 Involuntary
Resettlement Instruments and Operational Manual Bank Procedures BP4.12 (December 2001)
Involuntary Resettlement.
 OECD, Development Assistance Committee, 1992: Guidelines for Aid Agencies on Involuntary
Displacement and Resettlement in Development Projects.

26

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

relevant to the application of that institutions Policy on Involuntary Resettlement. Specific reference
to the Asian Development Banks Involuntary Resettlement Policy and the World Banks Policy and
Guidelines on Involuntary Resettlement (and related material) has guided the development of this
document.
3.3.2

Development of Involuntary Resettlement Policy and Standards

Over the last two decades both public and private sector agencies have developed and adopted
involuntary resettlement policies and standards.
In the public sector, the World Bank was the first agency to formulate a resettlement policy (first
issued in 1980). This was followed soon thereafter by the Asian Development Bank, Inter-American
Development Bank, the African Development Bank and other major agencies. In addition, in 1991,
the governments of 25 developed nation members of the Organisation for Economic Co-operation
and Development (OECD) adopted similar policy guidelines for their bilateral aid agencies. These
guidelines are binding for development projects assisted by OECD countries in developing countries
(including Indonesia).
The World Bank Policy on Involuntary Resettlement OD 4.30 was adopted by the International
Finance Corporation (IFCthe private sector development arm of the World Bank group) in 1998,
and has now been replaced by the revised policies and procedures issued by the World Bank in
2001. More recently, in June 2003, 10 leading international banks involved in financing private
projects, particularly in emerging markets, adopted a set of principles with the aim of ensuring
that the social and environmental issues in projects funded by them are properly managed .
These principles referred to as the Equator Principles reference a number of the World Bank and
IFC safeguard policies and specific guidelines, including OD 4.30 on Involuntary Resettlement.
In adopting the Equator Principles, the adhering banks (whose numbers have reached 29 by
end-2004) have undertaken, in specified circumstances, to provide loans only to those projects
whose sponsors can demonstrate their ability and willingness to comply with host country laws
and with the relevant World Bank and IFC policies and guidelines. The institutionalization of the
Equator Principles reflects a move by the international financial sector towards convergence with
international public agencies regarding the mechanisms for addressing the social and environmental
issues associated with major projects.

3.3.2.1 Asian Development Banks Policy on Involuntary Resettlement

The ADB Involuntary Resettlement Policy (1995) aims to ensure that people who are dispossessed
or displaced are able to realize development benefits. The intention of the policy is to ensure that
involuntary resettlement becomes a development opportunity, and that those affected actually
benefit from the project that is causing the impacts.
Expanding on the policy, OM Section F2 characterizes involuntary resettlement as occurring in
situations where the development of a project leads to temporary or permanent social and economic
impacts through: (a) the acquisition of land and other fixed assets; (b) change in use of land, or (c)
restrictions imposed on land as a result of a project. Affected People are defined as any people,

 These are currently being reviewed by the IFC. Refer to the Compliance Advisor Ombudsman: A
Review of IFCs Safeguard Policies, January 2003.
 Among the international financial institutions underwriting the Equator Principles are such
major banks as: Citigroup, AMRO, Crdit Suisse, First Boston, Barclays, and others. For more
information, see www.equatorprinciples.com.

3 Policy Framework for Project Land Acquisition and Resettlement

27

households, firms or private institutions who, on account of changes that result from the project
will have their: (a) standard of living adversely affected; (b) right, title, or interest in any house, land
(including residential, commercial, agricultural, forest, and/or grazing land), water resources, or any
other moveable or fixed assets acquired, possessed, restricted, or otherwise adversely affected,
in full or in part, permanently or temporarily, and/or (c) business, occupation, place of work or
residence, or habitat adversely affected, with or without displacement.
The three key elements of the policy are (a) compensation to replace lost assets, livelihood and
income; (b) assistance for relocation, including the provision of relocation sites with appropriate
facilities and services, and (c) assistance for rehabilitation to achieve at least the same level of
well-being with the project as without it. The key principles for assessing and planning involuntary
resettlement as defined in the Asian Development Banks OM Section F2 are as follows:
(a) Involuntary resettlement should be avoided whenever feasible.
(b) Where population displacement is unavoidable, it should be minimized by
providing viable livelihood options.
(c) Replacing what is lost. If individuals or a community must lose all or part of their
land, means of livelihood, or social support systems, so that a project might
proceed, they will be compensated and assisted through replacement of land,
housing, infrastructure, resources, income sources and services, in cash or
kind, so that their economic and social circumstances will be at least restored to
the pre-project level. All compensation is based on the principle of replacement
cost.
(d) Each involuntary resettlement is conceived and executed as part of a
development project or program. Affected people need to be provided
with sufficient resources and opportunities to re-establish their homes and
livelihoods as soon as possible, with time-bound action in coordination with the
civil works.
(e) The affected people are to be fully informed and closely consulted. Affected
people are to be consulted on compensation and/or resettlement options,
including relocation sites and socio-economic rehabilitation. Effective grievance
procedures must be established.
(f) Social and cultural institutions. Institutions of the affected people and, where
relevant, of their hosts, are to be protected and supported. Affected people are
to be assisted to integrate economically and socially into host communities so
that adverse impacts on host communities are minimized and social harmony is
promoted.
(g) No formal title. Absence of formal legal title to land is not a bar to entitlements.
People without formal land title and those with established use rights must be
recognized.
(h) Identification. Affected people are to be identified and recorded as early
as possible in order to establish their eligibility through a population record
or census that serves as an eligibility cutoff date, preferably at the project
identification stage, to prevent subsequent influx of encroachers or others who
wish to take advantage of such benefits.

28

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

(i) The Poorest. Particular attention must be paid to the needs of the poorest
affected people and vulnerable groups that may be at high risk of
impoverishment. This may include those without legal title to land or other
assets, households headed by females, the elderly or disabled and other
vulnerable groups, particularly indigenous peoples. Appropriate assistance must
be provided to help them improve their socio-economic condition.
(j) The full resettlement costs are to be included in the presentation of project
costs and benefits.
Implementation of ADB policy requires that proposed projects be assigned an involuntary
resettlement category depending on the significance of the probable resettlement impacts.
Projects are classified as Category A Significant; Category B Not Significant, or Category C
No Involuntary Resettlement Effects. If a project is categorized as Significant, the policy requires
the development of a full resettlement plan. Significant means 200 or more people will experience
major impacts, which are defined as: (a) being physically displaced from housing, or (b) losing
10% of more of their productive (income-generating) assets. The Tangguh Project is therefore a
Category A project in terms of its involuntary resettlement impacts.
3.3.2.2 World Bank Policy and Guidelines on Involuntary Resettlement
The IFC Policy on Involuntary Resettlement (based on World Bank OD 4.30 1990 ) aims to ensure
that the population displaced by a project receives benefits from it. The policy emphasizes that
resettled people are to achieve livelihood standards at levels above the pre-project situation. The
key elements of the policy are:
(a) Involuntary resettlement should be avoided, or minimized, where feasible,
exploring all viable project alternative designs.
(b) Where displacement in unavoidable, resettlement activities should be
conceived and executed as sustainable development programs, providing
sufficient investment resources to enable the persons displaced to share in
project benefits. Displaced persons should: (i) receive compensation for their
losses at full replacement cost; (ii) be assisted with the move and supported
during the transition period, and (iii) be assisted in their efforts to improve (or
at least restore) their former living standards, income earning capacity and
production levels. Special attention needs to be paid to the needs of the poorest
groups to be resettled.
(c) Community participation in planning and implementing resettlement should be
encouraged. Existing social and cultural institutions of resettlers and their hosts
should be supported and used to the greatest extent possible.
(d) Resettlers should be integrated socially and economically into host communities
so that adverse impacts on host communities are minimized.
(e) Land, housing, infrastructure, and other compensation should be provided
to the adversely affected population, indigenous groups, ethnic minorities,
and pastoralists, who may have usufruct or customary rights to land or other
resources taken for the project. The absence of legal title to land should not be
a bar to compensation.

3 Policy Framework for Project Land Acquisition and Resettlement

29

3.3.2.3 Key Aspects of International Guidelines Relevant to the Project

The following aspects of the policies have been of particular importance to the Project in establishing
its resettlement framework:
Ensuring that measures applied by the Project are socially appropriate;
Ensuring that the affected communities are provided with information, and fully

consulted on an ongoing basis;

Recognition that cash for land acquisition is frequently not a satisfactory mode

of compensation (particularly if there is a risk the cash will be spent quickly and
PAPs will become impoverished, or that women and childrens subsistence
needs may not be met);
A preference for landbased resettlement options;
Where insufficient land of reasonable quality is available, the use of income

generating and retraining schemes to restore and enhance livelihoods;

Providing opportunities for retraining, skills development, wage employment

and self-employment, with access to credit;

Impacts on host communities must be taken into account, and minimized as far

as possible.
The way in which the Project has taken account of the above considerations is illustrated by the
details of the resettlement activities described in this document.
3.3.3

Guidelines for Developing Involuntary Resettlement Plans/Resettlement Action

Plans
Both the ADB  and the IFC  have developed handbooks for planning and implementing involuntary
resettlement programs. These handbooks provide guidelines for developing a Resettlement Plan
(or Resettlement Action Plan).
A Resettlement Plan (or Resettlement Action Plan) defines a Projects resettlement objectives and
strategy. It also represents a projects commitment to the project-affected people and financing
institutions. While the content of a resettlement plan varies depending on the nature of the project,
its impacts and the size of the affected populations, the requisite basic components are:
Identification of project impacts and affected populations;
Baseline socio-economic and cultural information;
Define resettlement objectives as well as the policy and legislative framework

within which resettlement will take place;

Identify the types of losses that affected people will experience and describe

their eligibility and entitlement for compensation and assistance with respect to
each type of loss;

 Asian Development Bank (1998) Handbook on Resettlement: A Guide to Good Practice. Asian
Development Bank, Manila Philippines.
 International Finance Corporation (2002) Handbook for Preparing a Resettlement Action Plan.
International Finance Corporation, Washington DC, USA.

30

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

 Compensation framework for assets and disruption, including eligibility criteria,

an entitlement matrix, and mechanisms for valuation of assets;

Framework for, and description of, community participation and consultations;
Plans for provision of housing, public infrastructure, services and utilities;
Development planning for restoration and improvement of livelihoods;
Transfer assistance plan;
Consultation, participation and grievance resolution mechanisms;
Organizational role and responsibilities and institutional framework;
Implementation schedule;
Budget;
Monitoring and evaluation.

3.4

From Policy to Operational Planning: Adoption of the World Bank

Impoverishment Risk and Reconstruction (IRR) Model

3.4.1

Introduction
While the Tangguh Project recognizes that the various resettlement policies and guidelines aim
to safeguard resettlement-affected communities, it also required a specific tool to analyze key
impoverishment risks (i.e., risks to livelihood continuity) faced by communities affected by relocation.
Specifically, the Project sought an approach that would allow the Project to:
(a) Systematically identify the main poverty risks in the economic and physical
displacement of the Tanah Merah community and host villages (Saengga and
Onar), and
(b) Formulate, develop and implement strategies to mitigate and reverse risks and
ultimately achieve reconstruction at improved income and livelihood levels.

3.4.2

The Impoverishment Risk and Reconstruction (IRR) Model

The World Bank Impoverishment Risk and Reconstruction (IRR) model is an analytical and planning
tool designed to facilitate the identification and prevention of impoverishment risks faced by
resettlement-affected communities.
The IRR model identifies the main poverty risks generally faced by displaced communities as:
Landlessness loss of residential and customarily owned productive land;
Homelessness loss of housing and shelter;
Loss of access to common property resources loss of use of common

productive resources such as forests and ocean fishing areas, as well as loss of
access to community services such as places of worship, cemeteries, etc;
Joblessness loss of jobs and of access to job markets in situations when

people have wage-employment;

Food insecurity loss of opportunities to gather wild food, loss of food

production, access to markets or reduced capacity to purchase food;

3 Policy Framework for Project Land Acquisition and Resettlement

31

 Increased morbidity decline in health status;

Community disarticulation the disruption or loss of community social systems,

changes in clan or kin system patterns or the breakdown of mutual help

networks;
Marginalization a measurable drop in economic/social standing.

3.4.3

Application of the IRR Model to Tangguh Resettlement

At the outset of planning its Resettlement Program, the Tangguh Project used the IRR framework
to make an initial diagnostic estimate of the differential intensities of the basic poverty risks faced
by the resettlement-affected communities (Table 3.1). This analysis helped the Project to allocate
resources proportionately, in relation to pre-assessed risk-intensity, but nonetheless allowed
flexibility for adjustments as additional information came to hand. Chapter 6 sets out this analysis
for each of the affected villages.

Table 3.1Tangguh Project IRR Risk Intensity and Risk Reversal Strategy for Resettlement-affected
Communities

32

Risks

Likely
Intensity

1. Landlessness

High

Communities forgo significant areas of productive

resources

See Chapter 4, 9

2. Homelessness

High

127 families lose their original dwellings and home

plots

See Chapters 4, 5, 8

3. Lost Access to
Common Property

High

Common property resources (marine, sago, forest

and land) on transferred land become inaccessible;
loss of community infrastructure in Tanah Merah

See Chapters 4, 5, 8, 9

4. Joblessness

Low

Very little if any pre-Project wage employment exists

in the area.

See Chapter 5, 9

5. Food Insecurity

Moderate

Area and quality of land resources at resettlement

sites; interruption of agricultural production and
food supplies preceding, during and after population
transfer

See Chapter 5, 8, 9

6. Increased Morbidity

Moderate

Potential adverse health impacts from diseases

brought in by labour force; exposure to new Project
activities.

See Chapter 10

7. Marginalization

Moderate

Temporary or permanent loss of livelihood

opportunities; little change in individual, household
and clan status expected within Sumuri tribe;
competition from influx (migrant) population

See Chapter 9, 10

8. Social Disarticulation

Moderate

Stress resulting from uncertainties of relocation

and uneven impact/benefit distribution; potential
intra-clan conflicts regarding access to and use of
resources; potential inter-tribal jealousy and conflict
regarding distribution of Project benefits

See Chapter 10

Content of Main Risk

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Counter Risk
RAP Strategy

3.5

Conclusion
The Tangguh Project is committed to adhering to international policy and guidelines on involuntary
resettlement. This chapter has provided an overview of international policy and guidelines and
committed the Project to utilizing Asian Development Bank and World Bank policy guidelines in
the planning and implementation of its Resettlement Program. The overall objective in Tangguh
resettlement is that resettled and host communities are assisted to sustainably improve and
surpass their income, standards of living, and livelihoods (in real terms) over and above pre-Project
(displacement) levels or expected levels without the Project.
In accordance with these policies the Project has developed a LARAP as outlined in this document.
In implementing the plan, the Tangguh Project is committed to replace and upgrade existing village
assets and services, as well as improve the livelihood standards of the Tanah Merah community
and of the host villages, Saengga and Onar. Although replacing and improving assets and services
is important for community re-establishment, the core resettlement efforts will be medium- to
long-term programs designed to ensure that the affected communities can increase the sustainable
productivity of their natural resource-based activities (i.e., agriculture and fishing), and offering
expanded and diversified income-generation opportunities (i.e., employment, small business
development) to its residents.

3 Policy Framework for Project Land Acquisition and Resettlement

33

34

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

4. The Tangguh Project Policy and Legal

Framework for Project-Affected People
4.1

Introduction
This chapter describes the policy and legal framework within which the Tangguh Project has carried
out land acquisition and resettlement, and established compensation for Project-Affected People
(PAPs). It then describes in detail the way in which this has been implemented. The chapter is set
out as follows:
The first section identifies the Project-Affected People and sets out an

entitlement matrix.
The second section describes the policy and legal basis for provision of

compensation to Project-Affected People. Based on the identification of

Project impacts, this section focuses on the basis for: (a) land acquisition;
(b) resettlement, and (c) resource compensation including forest, cultivated
crops and marine resource rights. This section includes a comparison of the
Asian Development Banks policy on involuntary resettlement and Indonesian
legislation, and provides a summary of the way in which the Project has fulfilled
ADB requirements.
The third section deals with the implementation of the policy and legal

framework for the three groups of identified PAPs. Implementation includes

the process of establishing appropriate compensation, consultation, and
agreements with PAPs. The section illustrates how the framework adopted
by the Project reflects current Indonesian best practices and international
guidelines issued by the Asian Development Bank and the World Bank.
The final section addresses the complexity of resettlement for relocated

and host communities. It describes the development of specific agreements

between the Project and/or within the communities that facilitated resolution of
the many issues that have arisen during the resettlement process.

4 The Policy and Legal Framework for Project-Affected People

35

4.2

Entitlement Matrix
As discussed in Chapter 1, the Project has identified three Project-Affected groups:
(a) Those affected by exploration-phase seismic work;
(b) The resettlement-affected communities (i.e. those physically resettled and the
host villagesTanah Merah, Saengga and Onar);
(c) People impacted generally by land acquisition (primarily the three clans Sowai,
Wayuri and Simuna), and
Compensation for each of these groups has been dealt with in different ways in light of the timing
of the losses incurred by each of the groups. Project-Affected People who were temporarily
affected by seismic operations were compensated in the manner described in Section 4.4.1 below.
The main groups of PAPs are the villagers resettled from Tanah Merah, the host communities of
Saengga and Onar, and the three clans, compensated as set out in Section 4.4.2. In addition, as
described in Section 4.4.3, the Project commits to on-going monitoring and assessing occurrence
of resettlement-related impacts. Table 4.1 presents an entitlement matrix that identifies the losses
incurred by each group, and the way in which the Project has provided compensation.

Table 4.1 Entitlement Matrix

Type of
Loss
Eligibility
criteria

36

Entitlement
Holders of
Hak Ulayat
Sowai, Wayuri and
Simuna clans with
recognized adat/hak
ulayat rights to
affected resources

Community Use
Project-affected
communities
including
communities affected
by exploration
phase seismic
work, resettlementaffected communities
and communities
and commercial
enterprises potentially
affected by marine
safety exclusion
zones

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Individual
households
Households identified
as resident in Tanah
Merah by Project
2001 census
Households identified
as resident in
Saengga by Project
2002 census

Comment

Table 4.1 Entitlement Matrix (cont.)

Type of
Loss

Entitlement
Holders of
Hak Ulayat

Community Use

Individual
households

Comment

500m2 house plot /

household in Tanah
Merah Baru and Onar
Baru replacement
village (APs choice).

Total replacement
settlement area

A. LAND
Loss of
settlement
land

Loss of
forest land

Negotiated cash and

in-kind compensation
package for landselling clans based on
clan rights and land
boundaries agreed
between clans and
surveyed in March
1999; cash payment
distributed to clan
leaders

Replacement land
for settlement
including community
infrastructure and
utilities (Refer
Appendix 8.18.3 for
details pertaining to
resettlement villages of
Tanah Merah Baru and
Onar Baru)

Project to support
and cover costs for
applications for land
title for plots (in name
of husband and wife)

100 ha for Tanah

Merah Baru
6 ha for Onar Baru

Preparation of empty
house plots for future
village expansion in
Tanah Merah Baru

Negotiated cash and

in-kind compensation
package for land-selling clans based on clan
rights and land boundaries agreed between
clans and surveyed in
March 1999; cash payment distributed to clan
leaders. In-kind payment
included a development
foundation with Project
endowment of US$ 2
million.

Access to replacement
forest land through
self-initiated negotiation
with Simuna clan (Tanah
Merah Baru) and Agofa
clan (Onar Baru)

B. COASTAL AND MARINE RESOURCES

Marine
resources
affected by
establishment and
enforcement of
marine
safety exclusion zone
for LNG
site and
associated
facilities,
i.e., jetty
Marine
resources
potentially
affected by
intensification of
use (from
resettlers)

Development
foundation with
Project endowment
fund of US$2 million
to generate revenue
stream for three landselling clans
Endowment
distributed among
clans based on
proportional losses as
described in Table 4.5

Facilitate access to
alternative fishing
grounds through
provision of boats to
clans as described
in Section 9.3.2,
Fisheries Access and
Development Program

Facilitate restoration
of fisheries-based
livelihood activities
through the
Fisheries Access and
Development Program
described in Section
9.3.2

Mitigate potential
intensification by
facilitating clans access
to alternative marine
resources through
provision of boats. Refer
to Fisheries Access and
Development Program
described in Section
9.3.2

Mitigate potential
intensification by
facilitating resettled
households access
to alternative marine
resources by provision
of motors, etc. Refer to
Fisheries Access and
Development Program
described in Section
9.3.2

4 The Policy and Legal Framework for Project-Affected People

37

Table 4.1 Entitlement Matrix (cont.)

Type of
Loss

Entitlement
Holders of
Hak Ulayat

Community Use

Individual
households

Marine
fishing
grounds
affected by
restriction
of use (for
sub-sea
pipelines,
utilities,
platforms)

Comment

Analysis demonstrates
that current development plans will not
affect artisanal and
commercial fisheries

C. HOUSES AND INDIVIDUALLY OWNED ATTACHMENTS

Loss of
house
structures

Replacement house
constructed by project
at APs preferred
replacement village.
Assistance with
packing and physical
relocation of
household goods

Assistance with
demobilisation
of all structures
and subsequent
transport to
APs preferred
replacement village
Loss of
additional
infrastructure (fences,
animal pens,
kiosks, etc)

Assistance with
demobilisation of all
structures and subsequent transport to APs
preferred replacement
village

Loss of
wells &
bores

No privately owned
wells and bores

D. GARDENS, PLANTS AND CROPS, FRUIT TREES 1

Loss of
cultivated
tree crops
(fruit trees,
estate
crops)

Not applicable

As for individual
households

Cash compensation
to owners of trees on
a per tree basis.
Rates in accordance
with the Decree of
Bupati of Manokwari,
No. 213, 1997
Provision of
replacement
asset (grafted fruit
trees) to resettled
households to
facilitate restoration
of production

Plants not on the

inventory list will
not be eligible for
compensation.
An inventory of all
productive crops
(including fruit trees)
was conducted
jointly by the project
and Tanah Merah
residents in March
1999.
Agreement pertaining
to provision of
compensation
specifies that
trees planted after
the inventory will
not be eligible for
compensation.

1 Detailed records of the measurement and inventories of crops and trees in Tanah Merah are retained by the Project

38

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 4.1 Entitlement Matrix (cont.)

Type of
Loss
Loss of
sago

Entitlement
Holders of
Hak Ulayat
Negotiated lump sum
cash compensation
(IDR75 million)

Community Use
Agreement by
project to provide
communities with
access to sago areas
lying to east of plant

Individual
households

Comment

Not applicable

Original lump sum

compensation
defined in Minutes of
Agreement dated 26
May 1999.

Path around LNG

terminal site to
connect Tanah Merah
to sago stands (to
be constructed by
project)

Agreement for
access to sago area
defined in 8 August
2002 Agreement
Commitment
for construction
of access path
bypassing the LNG
site to allow access
to sago stands as
described in 8 August
2002 Agreement

Project supply of
boats (one per clan) to
enable marine access
around LNG jetty to
sago stands.
Access to sago
proximate to
resettlement
sites through own
negotiation with
Simuna clan (Tanah
Merah Baru) and
Agofa clan (Onar
Baru)

Other commitments
as defined by this
RAP.

Agricultural
diversification
programs to reduce
reliance on sago
refer to Section
9.3.1
Loss of
garden plots

Development of house
garden and agroforestry
plots in resettlement
sites as described in
Section 9.3.1

Analysis demonstrates
only usufructuarry use
of garden plots; beyond
initial clearing, no
development of garden
plots

Loss of
forest plots

Access to replacement
forest land through
self-initiated negotiation
with Simuna clan (Tanah
Merah Baru) and Agofa
clan (Onar Baru)

Analysis demonstrates
only usufructuary use
of forest plots with
reversion to clan based
communal ownership after cultivation;
some plots planted
to fruit trees implying
extended usufructuary
use; compensation
provided for fruit trees
as described above

4 The Policy and Legal Framework for Project-Affected People

39

Table 4.1 Entitlement Matrix (cont.)

Type of
Loss
Loss of
field and
vegetable
crops

Entitlement
Holders of
Hak Ulayat
Not applicable

Community Use
As for individual
households

Individual
households

Comment

Cash compensation
to owners of crops on
a per plant basis

Plants not on the

inventory list will
not be eligible for
compensation

Rates for medium

and large crops in
accordance with the
Decree of the Bupati
of Manokwari, No.
213, 1997
Rates for plants
categorized as small
to be one-third Bupati
Decree rates for
medium plants
Provision of
replacement asset
(crop and vegetable
seed) to resettled
households to
facilitate restoration
of production

An inventory of all
productive plants
(including crops) was
conducted jointly by
the project and Tanah
Merah residents in
March 1999
Entitlements are
defined in Minutes
of Payment of
Compensation for
Vegetation of 22 July
1999, with minor
addition of 24 July
1999
The Minutes identify
eligible owners of
plants (individuals, a
church, village and
hamlet entities)
Agreement pertaining
to provision of
compensation
specifies that
crops planted after
the inventory will
not be eligible for
compensation

E. FOREST AND FOREST RESOURCES

Loss of
cultivated
forest
species

Loss of
forest

Loss of
access to
non-timber
forest
products
& hunting
grounds

Project will provide

access to or
compensation for
Agathis spp. stands
based upon operational
and safety requirements
of the LNG facility
Hak Ulayat payment
for trees felled for
construction of Tanah
Merah Baru and LNG
site. Compensation
rates based on Governorial decree and forest
inventory.

Access to replacement
forest land through
self-initiated negotiation
with Simuna clan (Tanah
Merah Baru) and Agofa
clan (Onar Baru)

Access to replacement
forest land through
self-initiated negotiation
with Simuna clan (Tanah
Merah Baru) and Agofa
clan (Onar Baru)

Access to replacement
forest land through own
negotiation with Simuna
clan (Tanah Merah Baru)
and Agofa clan (Onar
Baru)

Access to replacement
forest land through own
negotiation with Simuna
clan (Tanah Merah Baru)
and Agofa clan (Onar
Baru)

F. COMMUNITY FACILITIES AND INFRASTRUCTURE

Loss of
meeting hall

40

Project provision of
meeting hall

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 4.1 Entitlement Matrix (cont.)

Type of
Loss

Entitlement
Holders of
Hak Ulayat

Community Use

Loss of
primary
school

Project provision of
kindergarten and
primary school for 6
grades; provision of
teacher housing

Loss of
sporting
facilities
(volley ball,
soccer)

Project provision of
volleyball courts (3x),
football field (1x) and
basketball court (1x at
high school)

Loss of
places of
worship

Project provision of
one mosque, one
Catholic church and
one Protestant church
in Tanah Merah Baru

Loss of
wells, bores

Project provision of
centralised bore,
pump and water
storage facilities for
replacement villages.
Project provision
of reticulated
water supply to all
replacement houses.

Individual
households

Comment

Project also provided

lower secondary school
and dormitory

Reticulated water
supply connection
to each replacement
house.
Project provision of
health and hygiene
training to women
APs.

Project recruitment
and provision of a
Village Facilities
Supervisor for 18
months following
relocation to oversee
operation of water
systems and develop
village capacity to
manage and operate
system
Training and capacitybuilding to village
management and
selected villagers
for management,
operations
(maintenance, cost
recovery) and repair
of the water supply
system.

G. CULTURAL SITES
Loss of
access to
sacred sites

Development
of Sacred Sites
Agreement allowing
for relocation of key
sacred sites (Sowai
clan)
Protection of Simuna
and Agofa clan sacred
sites on resettlement
sites

4 The Policy and Legal Framework for Project-Affected People

41

Table 4.1 Entitlement Matrix (cont.)

Type of
Loss
Loss of
access to
cemetery

Entitlement
Holders of
Hak Ulayat

Community Use

Individual
households

Development of
Cemeteries Access
and Maintenance
Agreement providing
access on important
religious days

H. LOSS OF LIVELIHOOD AND INCOME

Loss of
subsistence/
income
from coastal
resources &
fisheries

Provision of boat and

outboard engine (one
per clan) to facilitate
access to more distant
resources

Loss of
subsistence/
income
from
agriculture

Provision of 15HP
outboard motors to all
households owning or
acquiring a boat

For households relocating from Tanah Merah:

Provision of transitional food package
for one year following
relocation allowing
garden establishment
and production
Agricultural restoration program
(house garden and
agroforestry systems)
to promote restoration and intensification of agriculture.
Refer Section 9.2.2
Access to replacement forest land
through own negotiation with Simuna clan
(Tanah Merah Baru)
and Agofa clan (Onar
Baru)

Loss of
subsistence/
income
from forest
resources

For households relocating from Tanah Merah:

Provision of transitional food package
for one year following
relocation allowing
garden establishment
and production
Access to replacement forest land
through own negotiation with Simuna clan
(Tanah Merah Baru)
and Agofa clan (Onar
Baru)

Loss of
subsistence/
income
from forest
resources
during
relocation

42

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Households provided
with meals during
relocation

Comment

4.3

Discussion of Relevant Legislation

A list of the key Indonesian laws and regulations considered in connection with the Tangguh LNG
Project is set out in Appendix 4.1. In carrying out land acquisition and resettlement, the Project
carefully adhered to applicable Indonesian law and best practices. A significant feature of the land
acquisition and resettlement for the Project relates to the presence of traditional indigenous (or
adat) communities. Consequently, the framework for land acquisition and compensation has taken
into account both the formal system of Indonesian law and the customary rights of the affected
communities.
The Project has also referred to international guidelines with regard to the nature of involuntary
resettlement, adat rights and the treatment of adat communities and resettlement. Specifically, the
Project referred to:
The Asian Development Banks Policy on Involuntary Resettlement (1995), ADB

OM F2/BP and OM F2/OP on Involuntary Resettlement (2003) and F3/BP on

Indigenous Peoples (2004), and
The World Banks Operational Policy on Involuntary Resettlement OD 4.30

(1990) and OD 4.20 on Indigenous Peoples (1991).

4.3.1

Adat Communities
From the outset, the Project acknowledged the existence of indigenous or adat communities with
special connections to land and natural resources, and sought to ensure that these communities
benefit as much as possible from the development process. The Project utilized the criteria set
out in WB OD 4.20 (defined as social groups with a social and cultural identity distinct from the
dominant society) to recognize two groups of indigenous people, the Sebyar and Sumuri.
Recognition of adat communities is particularly significant in Papua, and is incorporated in regionspecific legislation to a greater extent than elsewhere in Indonesia. The Papuan Special Autonomy
Law passed in 2001 (two years after the 1999 Project acquisition of land) specifically addresses the
protection of adat communities and the status of traditional rights (hak ulayat) in Papua. The law is
significant in that it deals with issues relating to the protection of adat communities and hak ulayat
within the existing Indonesian statutory framework and forms the basis for future development in
Papua. It defines hak ulayat as the right of association controlled by a specific adat community
over a specific area, covering the right to utilize the land, forest and water, and their contents, in
accordance with statutory regulations. It requires the Government of Papua to acknowledge and
develop the rights of adat communities, guided by the provisions of statutory regulations. The law
states that the existence of adat (hak ulayat) rights in different adat communities within Papua
varies because of the social and economic development of the adat communities themselves.
The Papuan Special Autonomy Law recognizes (in certain cases implicitly) two key difficulties with
adat rights. Firstly, the tension between the statutory or formal legal system and adat rights, which
frequently gives rise to uncertainty and conflict, and secondly, the difficulty of identifying the true
characteristics of adat (hak ulayat) rights and adat norms. As described later in this chapter, the
Project addressed these two difficulties in the acquisition and resettlement process through ongoing consultation, clarification and documentation of agreements.

4 The Policy and Legal Framework for Project-Affected People

43

4.3.2

Land

4.3.2.1 The Basic Agrarian Law

The basis for national land law in Indonesia is the Basic Agrarian Law of 1960 (BAL). The intention of
the law was to abolish the dual land law system under Dutch colonial rule. Under the Dutch system,
certain land was governed by rules of ownership set out in the Netherlands East Indies laws, while
customary Indonesian law governed other land. The aim of the BAL was to simplify this system and
provide the basis for a uniform national land law that would allow for legal certainty, and impose
certain basic criteria in relation to land ownership. Thus, the BAL provided that all land rights should
have a social function and that excessive land holdings should not be permitted. It also stipulated
that land could be acquired by the Government, following due process and the payment of proper
compensation, if this was in the public interest. The BAL identified a number of different types of
land titles, and anticipated the progressive registration of land throughout Indonesia.
However, progress toward the legal certainty to which the BAL aspired has been slow. In many
parts of Indonesia, land title is not registered with the Land Office. In addition, a significant
proportion of land remains under the administrative control of the Ministry of Forestry. In certain
areas of Indonesia, including Papua, the situation is complicated further by the existence of adat
communities holding (or at least claiming to hold) traditional rights to land and natural resources.
4.3.2.2 The Inter-relationship of Adat and Formal Law
The extent to which adat land rights are recognized in national land law and policy is difficult to
ascertain. While the BAL states that adat law forms the basis for the new national agrarian law, it
also states that adat (hak ulayat) rights be recognized only insofar as they are not contrary to national
law and interests. The status and treatment of adat land rights within a legal regime where priority
is given generally to registerable land title has been an on-going source of uncertainty in Indonesia.
Accordingly, in recent years there has been a growing attempt to identify adat rights and to resolve
the tension that exists between these rights and statutory law.
The Regulation of the Minister of Agrarian Affairs 5 of 1999 (BPN 5) sets out the guidelines for
the settlement of issues relating to adat land rights. It describes such rights as communal rights
which belong to an adat community which, pursuant to the customary law of that community,
reside with that specific adat community. Such rights exist over a specific area that constitutes
the living environment of the adat community, in which they may exploit the natural resources,
including the land, for their lives and livelihood. The right to do so arises as a consequence of the
inseparable physical and spiritual relationship existing from generation to generation between the
adat community and its traditional land.
The Decree states that adat land title, providing it actually exists, may be exercised by the adat
community accordingly to the provisions of local adat law. Such land title will be treated as still
existing if:
A group of people exist who feel they are still bound by their customary law

system as traditional members of a particular legal affiliation, and who recognize

and apply the rules of such union in their daily lives;
There is a specific plot of communal reserved land which constitutes the living

environment of the members of the legal affiliation, which is the place from
which they derive the daily necessities for their lives, and

44

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

 A customary law system regarding the settlement, control and use of the adat

land still prevails, and is adhered to by the members of the legal affiliation.
A significant feature of this Decree is the requirement to carry out an examination and determination
of whether adat land title still exists. The Decree states that this will be conducted by regional
government involving customary law experts, the adat community itself, NGOs and government
agencies who are managing natural resources. The Decree requires that the existence of adat land
belonging to a specific adat community must be recorded on a land registration map showing the
boundaries of the land. Such land should be registered at the land registry. The Decree makes it
clear that the exercise of adat land title by adat communities will not apply to plots of land which
(at a specified time) are already possessed by individuals or statutory bodies by virtue of a certified
land title under BAL, or are plots of land already acquired or appropriated by government institutions,
statutory bodies or individuals pursuant to the prevailing provisions and procedures.
The Papuan Special Autonomy Law contains specific provisions relating to land acquisition and title,
requiring consultation to be carried out before any acquisition of any adat land. It aims to achieve
legal certainty, stating that rights or control over ex-hak ulayat land lawfully obtained by third parties
(that is, obtained according to applicable procedures and statutory regulations) must be honoured.
The law makes it clear that a traditional land right that has been relinquished cannot be revived or
reclaimed by heirs.
4.3.2.3 Land Title
The BAL identifies the different land rights that can exist in Indonesia, the way in which they are
created, and their specific conditions. Under Indonesian land law, different land rights can only be
held by specified legal entities and land can only be used in accordance with the conditions of the
existing land title. Therefore, parties must hold the appropriate title for the activity they propose to
carry out. Indonesian citizens may hold a wide variety of land titles. Normally, preference is to hold
Hak Milik (Right of Ownership), which is the strongest land right available under Indonesian law.
Once granted, it can be held indefinitely, and allows the holder to cultivate or construct buildings on
the land and to sell or mortgage the land.
Frequently, obtaining land title is carried out in two stages, involving relinquishment of the existing
title, and application by the purchaser for a new title. Where the purchaser is not entitled to hold the
existing land rights, a Deed of Relinquishment must be executed, pursuant to which the existing
rights are released to the State, enabling the prospective purchaser to apply to the State for the
grant of a new title. Where the rights to be acquired are not formally registered, care must be taken
in identifying the owners of the land and the boundaries of such land. Any other rights or issues
relating to the status of the land (for example, zoning or use rights), which are not compatible with
the title the purchaser wishes to acquire, must be resolved.
Once all existing rights have been relinquished or acquired and all other necessary documentation has
been obtained, the purchaser applies for land title. The purchaser will submit to the local Kabupaten
Land Office documents required for land title application, including the Relinquishment Deed and
any required recommendations or approvals (which will depend on the specific nature of the land
acquired), with documents relating to the identity of the individual and payment of applicable taxes.
Depending on the size of land to be acquired, the application for title will be approved by the head
of the Land Office either at the district, provincial or national level.

4 The Policy and Legal Framework for Project-Affected People

45

4.3.3

Resettlement
There are numerous laws and regulations issued by the Land Office and other ministries in Indonesia
that are relevant to the issues that arise in the context of resettlement. In terms of resettlement
specifically, a key piece of legislation is Presidential Decree 55 of 1993 (PD 55 ), which relates to
the acquisition of land for construction by the government in the interests of the public. This is
implemented by the Regulation of the Head of the National Land Agency 1 of 1994 (BPN 1). Apart
from Presidential Decree 55 (which is in the process of being amended) and the Project-specific
regulations referred to in Section 4.3.3.3 below, there is little specific legislation in Indonesia on
resettlement.

4.3.3.1 Presidential Decree 55

Presidential Decree 55 is applicable for construction undertaken by the government in the public
interest, where the facilities will be owned by the government and will not be used to generate
profit. Generally speaking, it is not intended to apply directly to private sector projects, where
land acquisition is carried out through direct negotiation. Nevertheless, it is significant in terms of
establishing standards for land acquisition and resettlement for infrastructure projects in Indonesia.
It reflects many aspects of international practice regarding consultation, identification of affected
assets, and eligibility for and methods of establishing compensation.
Compensation: The Decree specifies that compensation is payable for land title, buildings, plants
and any other improvements made to the land. Compensation may take the form of money, land in
substitution, resettlement, and a combination of these or any other form of compensation agreed
by the parties. It requires that compensation for land that is jointly controlled (essentially under hak
ulayat) should be in the form of construction of public facilities or other forms beneficial to the local
community. Consultation with the affected people should lead to a consensus on compensation
Compensation for land should be based on the actual selling price of land and/or the relevant Land
and Building Tax. It is recognized however that other factors will influence the price of the land,
including location, the type of land title being acquired, the status of land control, the use designation
of land, whether or not the land is being used in accordance with the regional spatial planning, and
the infrastructure available on the land. In addition to compensation to holders of the registered title,
the Decree specifies that certain people using land without formal rights are nevertheless entitled
to compensation. The local Public Works office assesses compensation for buildings while the
regional Agricultural Department assesses compensation for plants.
Consultation: A key aspect of the Decree is the emphasis on consultation with the affected
community, to be conducted by both the land appropriation committee and the government agency
requiring the land. Consultation must be based on the provision of information to the community.
Inventory: The Decree also requires an inventory of land plots and assets that will be affected by
construction. The intention is that the inventory, once completed, should be available to the public
for comment.
4.3.3.2 Eminent Domain
As mentioned above, the BAL recognizes the possibility of the Government appropriating land rights
in the public interest. This concept is set out in Law No. 20 of 1961 relating to Expropriation of Land
and Objects Attached to the Land. Over the years this general right has been reflected in a number
of regulations, all of which sought to specify the purpose and procedure for such expropriation. At

46

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

no point has the Project resorted to the use of eminent domain for displacing people. The Project
has adopted a fully negotiated approach to the land acquisition (willing buyerwilling seller as
described more fully in Chapter 7) that has required detailed and on-going consultation to reach
agreement with the affected communities.
The most recent legislation relating to eminent domain is Presidential Decree 55. A significant
feature of the Decree is the emphasis that is placed on reaching a negotiated agreement between
the land sellers and the government agency that wishes to acquire the land. If agreement ultimately
cannot be reached, the Decree provides that the situation may be resolved by way of repealing
the land title itself. The request for repeal of the land title must be submitted to the President of
Indonesia by the Head of the Land Office, and should be signed by the Minister of Home Affairs,
the minister in charge of the agency that requires the land, and the Minister of Justice. In such
circumstances, a Committee of Appraisers will decide the compensation. In practice, repeal of title
is an onerous procedure and is rarely used.
4.3.3.3 Project-Specific Resettlement Legislation
At least two Indonesian provinces have gone beyond the national standards set out in Presidential
Decree 55 by adopting regulations that incorporate the World Banks policy on involuntary
resettlement, with modifications appropriate to Indonesian legal principles. These decrees provide
guidelines for land acquisition and resettlement caused by infrastructure projects in each province,
requiring baseline surveys, other socio-economic surveys, the preparation of a Land Acquisition
and Resettlement Action Plan (LARAP), dissemination of information, consultation, compensation
alternatives, resettlement sites, rehabilitation assistance, income restitution, integration, training
and assistance. These are:
Decree of the Governor of Bali No. 3 of 1997 on Guidelines for Land Acquisition,

Resettlement and Assistance for the Persons Affected by the Bali Urban
Infrastructure Project, and
Decree of the Governor of Aceh No. 1 of 1998 on Guidelines for Land

Acquisition, Resettlement and Assistance for the Persons Affected by the Aceh
Regional Roads Project.
The Bali Decree of 1997 (Bali Decree) sets out detailed guidelines for carrying out land acquisition,
resettlement and community development for the affected community. The Decree contains the
following:
Surveys: As part of the planning and land acquisition process, the Kabupaten (Regency) government
should carry out a basic survey and social economic survey in order to acquire data relating to the
social economic situation of the affected community. The basic survey should be carried out at
the start of the project. The date on which the survey is carried out should be used as the basis
for determining the cut-off date for the registration of the community who is going to receive
compensation.
Resettlement Action Plan: Following the completion of the surveys, the Kabupaten government
should prepare a plan that covers the land acquisition, resettlement and community development
activities. The plan should include a description of the reason for the land acquisition and resettlement;
data obtained from the surveys and other sources; policies relating to resettlement and community
development; assets for which compensation will be provided; level of compensation; options for
resettlement; grievance procedures; monitoring and evaluation; budget and financial resources, and
community consultation procedure.

4 The Policy and Legal Framework for Project-Affected People

47

Socialization and Consultation: Detailed consultation must be carried out. The purpose of socialization
is to disseminate information relating to the project and its implementation; to identify the benefits
and impacts of the project, and to understand the attitudes of the community with respect to the
project, compensation, housing, and efforts to minimise the negative impacts of the project.
Compensation: The community affected by the project shall be given a reasonable compensation
so as to increase their livelihood. The compensation for the land, building and assets attached to it
shall be determined based upon (a) the actual compensation value and (b) the market value available
at the time. The actual compensation value for the land shall be determined upon a survey of the
land market value, the relevant Land and Building Tax and input from the experts as well as the
community leaders. Based upon agreement reached during amicable discussions, the community
being resettled should have an option to receive compensation in the form of cash or other forms
of non-cash compensation. The non-cash compensation can include the following: the provision of
land plots which are ready to be developed; affordable housing; housing and the provision of credit
facilities or other appropriate alternatives.
The compensation should be agreed through consultation. The actual agreed compensation
should be sufficient to enable the community to purchase land, building and assets of a size and
quality equivalent to those previously owned. All associated fees and taxes must be included in
the projects costs. Costs relating to obtaining new land certificates for the resettled community
must also be included in the projects costs. The actual compensation value for buildings should
refer to the standards of costs for the building development issued by the Public Works office. The
compensation value for trees, agricultural produce and other assets should use standards issued by
the relevant institutions.
Rehabilitation and Development: In addition to receiving compensation for the land, buildings and
assets, the affected community should be provided with rehabilitation and development assistance.
This should be designed to increase the livelihood of the community and to help the community
make necessary adjustments to the new environment.
Resettlement Village: If the total number being relocated exceeds 100 people or 20 households,
and there is no affordable housing in the near vicinity, the Kabupaten government should develop
a location specifically for resettlement. The Kabupaten government should also build infrastructure
and public facilities at this location. These should include access roads and walking paths; a water
drainage system; drinking water and electricity, as well as medical, education, religious and sports
facilities. The development of the resettlement project, the move of the community to a new
location and the payment of the compensation should take place prior to the implementation of the
constructions of the project.
4.3.4

ADB Requirements, Indonesian Law and Project Action

Table 4.2 provides a comparative analysis of the ADB involuntary resettlement policy and guidelines
and the Government of Indonesia legislation pertaining to involuntary resettlement. Indonesian
legislation relevant to involuntary resettlement was described in Section 4.3.3. Of such legislation,
Presidential Decree 55 of 1993 (due to be revised) sets out standards for land acquisition and
resettlement for government and specified projects, and reflects many aspects of international
guidelines. While not strictly applicable to the Tangguh Project, it provides a basis for assessing
Indonesian best practices and therefore has been referred to below in assessing Indonesian law
requirements. It has formed the basis for two further decrees, issued in Bali and Aceh, described
in more detail in Section 4.3.3.3.

48

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 4.2Comparative Analysis of ADB Policy and Government of Indonesia Legislation Pertaining
to Involuntary Resettlement

ADB Policy Requirements

Indonesian Law

Project Action

Provide compensation for lost

assets, livelihoods and income.

Provide compensation for the

appropriation of land title, buildings,
plants and other objects related the
land (PD 55, A12).

Project has provided compensation

in the form of:

The community affected should be

given reasonable compensation so
as to increase their livelihoods (Bali
Decree)

A combination of cash and

in-kind benefits (as detailed in
this chapter and Chapter 8 and
Appendices 8.18.3).
Food support for interim period
move to new village
Targeted assistance (path, boats,
outboard motors) to facilitate
access to more distant fishing
grounds and sago holdings

Provide assistance for relocation,

including sites for resettlement and
appropriate facilities and services.

Compensation may take the form of

resettlement (PD 55, A13).
If the total number being
relocated exceeds 100 people or
20 households, and there is no
affordable housing in the near
vicinity, the Kabupaten government
should develop a location specifically
for resettlement. The government
should also build infrastructure
and public facilities at this location.
These should include access
roads and walking paths; water
drainage system; drinking water,=
and electricity; medical, education,
religious and sports facilities.

Project acquired 200 ha of land for

construction of the resettlement
village and reconstruction of host
villages. Project facilitated right to
use land at Onar.
Project has constructed houses,
public facilities and services
(as detailed in Chapter 8 and
Appendices 8.18.3).
Assistance was provided for
physical relocation at community
and household level.

Provide assistance for rehabilitation

(at same level of well-being as
without project).

The affected community should

be provided with rehabilitation
and development assistance. This
should be designed to increase
the livelihood of the community
and to help the community making
necessary adjustments to the new
environment (Bali Decree).

Project has established livelihood

restoration programs, including
agriculture, fisheries and microenterprise.

ADB Principle Requirements

Indonesian Law

Project Action

Involuntary resettlement should be

avoided.

Project considered a total of 17

sites during the site selection
process (see Section 2.4). A choice
of possible sites was reduced
to three. The final choice was
made with the agreement of
the community, knowing that it
would require land acquisition and
resettlement.

If population displacement is unavoidable,

impact should be minimized by providing
viable livelihood options.

The resettlement sites were

chosen by the villagers. Both sites
are similar to the situation at Tanah
Merah, and support similar social
interaction and use of resources
(shore line marine resources,
fishing grounds, access to forest
lands for cultivation and access to
forest to collect forest products).

4 The Policy and Legal Framework for Project-Affected People

49

Table 4.2Comparative Analysis of ADB Policy and Government of Indonesia Legislation Pertaining
to Involuntary Resettlement (cont.)

ADB Principle Requirements

Indonesian Law

Project Action

Replace what is lost: Individuals and

communities must be compensated and
assisted through replacement of land,
houses, infrastructure, resources, income
sources, services

Compensation may take the form

of money, land in substitution,
resettlement, a combination of two
or more forms of compensation as
referred to above or other forms
as agreed upon by the parties
concerned (PD 55, A 13).

Project surveyed land and

conducted a consultative land
acquisition process involving
government, advisors, and the
clans, to reach a negotiated
settlement which included cash and
in-kind benefits.

The Land Acquisition Committee

shall conduct an inventory of land
and plots, including buildings, plants
and other objects related to the land
(BPN 1, A 11).

Project conducted an inventory

of assets (houses, infrastructure,
fruit trees, sago, plants) and
assets were either replaced or
compensation was provided in line
with government leglislation.

In cash or in-kind
Restoration of their their economic and
social circumstances to pre-project
levels.
Compensation should be based on the
principle of replacement cost.

After counselling and the

determination of the boundaries,
the Land Acquisition Committee
shall convene a meeting of the
government agency requiring the
land, land titleholders and owners
of buildings, crops or other objects
in order to negotiate the form and
amount of compensation (BPN 1,
A 14).
Compensation for the land controlled
with the right jointly held by a group
of people shall be given in the form
of construction of public facilities or
other forms beneficial to the local
community (PD 55, A14).
The price for land is based on the
real value, taking into account the
latest Land and Building Tax for such
land (PD 55, A15).
Other factors should also be taken
into account when establishing a
value for the land (BPN 1, A 16)
The selling value of buildings and
plants is established by the relevant
Regional Administrations agency
(agriculture and public works)(PD 55,
A15).

Project has replaced in full the

assets lost in Tanah Merah. The
quality of the replacement assets
far exceeds what was previously
owned or used. The Project has
also provided substantial additional
infrastructure, including housing
for teachers, religious leaders and
health staff, a health clinic and
market place, village government
offices and a cooperative building,
as detailed in Appendix 8.1 and 8.2.
Each household in Tanah Merah
Baru has been provided with a
500m2 house plot, together with
gardens and agroforestry. The
Project will assist in obtaining land
title.
Sources of income (primarily
fishing) have been restored and
enhanced with capacity-building
programs.
Heath and education programs
have been introduced, together
with the provision of high school
and boarding house (which did not
exist previously)

Efforts shall be made to ensure

that compensation is in a form that
will not change the living pattern of
the community, taking into account
the possibility of resettlement to a
suitable location (BPN).
Carry out involuntary resettlement as a
development project.

50

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

The involuntary Resettlement

Program has been implemented
with the aim of achieving
resettlement with sustainable
development.

Table 4.2Comparative Analysis of ADB Policy and Government of Indonesia Legislation Pertaining
to Involuntary Resettlement (cont.)

ADB Principle Requirements

Indonesian Law

Project Action

PAPs should be fully informed and closely

consulted on:

Negotiations are to be conducted

directly between the land titleholders concerned and the
government agency requiring the
land (PD 55, A 10).

A key feature of the Project is

on-going consultation. PAPs have
been fully informed and consulted
at all stages and on many aspects
of the Project (land acquisition,
construction, relocation and
restoration).

Compensation
Resettlement options
Socioeconomic rehabilitation
Pertinent resettlement information should
be provided at the key times.
Opportunities should be given to allow
PAPs to engage in choosing, planning and
implementation options.
Grievance procedures must be
established.

If PAPs are particularly vulnerable,

social preparation is needed to enhance
capacity.

A Land Acquisition Committee

(LAC) should be formed in each
regency and municipality. The LAC
should include relevant government
agencies (agriculture, land, public
works), together with the head
of the village in which the land is
situated. The LAC is required to:
Assess and propose the amount
the compensation
Provide information and
counselling regarding the reasons
the land is required
Hold negotiations to establish the
amount and form of compensation
Witness the implementation of the
handing over of compensation to
holders of land title and rights over
buildings, plants and other objects
on the land.
The LAC shall provide explanations
to both parties in order to reach
agreement in the negotiations,
particularly with regard to
compensation (BPN 1, A 16):

Meetings with the clans and

the communities in early 1999
discussed land acquisition,
resettlement and the way in which
compensation would be provided.
Choices regarding resettlement
sites were provided. PAPs have
been consulted on the type of
program to be provided, and
appropriate design.
PAPs have continuous access to
the Resettlement Team through
formal and informal mechanisms.
The Project has recognized the
indigenous nature of most of the
PAPs, and has sought to ensure
that all outcomes adequately
take into account such special
characteristics. The needs of
vulnerable households have been
taken into account in developing
programs and activities.

The government agency requiring

the land should provide counselling
to the community affected by the
construction. The reasons for the
construction should be explained
in order for the community to have
an understanding of and accept the
development (BPN 1, A 9).
Social and cultural institutions to be
protected and supported.
Integrate PAPs and hosts socially and
economically so as to minimise adverse
impacts and promote social harmony.

The Project is cognizant of cultural

and adat institutions, and has
consulted on, and facilitated,
appropriate adat procedure.
Project has provided assistance
to host communities to develop
houses and physical infrastructure
and to develop services (e.g.
health and education). Project has
encouraged the sharing of certain
facilities between resettlers and
host, where appropriate.
Social and adat ceremonies
generally include both resettlers
and hosts.

4 The Policy and Legal Framework for Project-Affected People

51

Table 4.2Comparative Analysis of ADB Policy and Government of Indonesia Legislation Pertaining
to Involuntary Resettlement (cont.)

ADB Principle Requirements

Indonesian Law

Project Action

No formal title: Indigenous groups and

people who have claims to land without
formal legal rights and those with
usufruct/customary rights to land and
resources must be entitled to benefits

LAC is required to conduct surveys

regarding the legal status of the land
title to be relinquished.

Traditional land rights and fishing

rights of the three clans have
been recognized by the Project.
Compensation has been provided
to the three clans based on this
recognition.

Compensation shall be given to

specified categories of people using
land without title (BPN 1, A 20).
Adat land rights (rights for
communal land from which the
adat communities derive their daily
necessities) should be recognized to
the extent that they still exist and are
exercised in accordance with adat
law (BPN 5).
Adat land rights, to the extent that
they still exist, are to be exercised
in accordance with adat law. Such
rights can be relinquished and
acquired by a third party. If such
acquisition is in accordance with
statutory requirements then the adat
title is extinguished and cannot be
revived (PSAL).

Identification of PAPs through census

to establish cut-off date and prevent an
influx of encroachers or others who wish
to take advantage of benefits.

52

The LAC shall survey the boundaries

of the land to be acquired, and
conduct an inventory of the land and
plots, including buildings, plants,
and other objects relating to the land
(BPN 1, A11). As part of the planning
and land acquisition process,
the Regency government should
carry out a basic survey and social
economic survey in order to acquire
data relating to the social economic
situation of the affected community.
The basic survey should be carried
out at the start of the project. The
date on which the survey is carried
out should be used as the basis for
determining the cut-off date for the
registration of the community who is
going to receive compensation (Bali
Decree).

Project carried out a census of

Tanah Merah and Saengga in 2001
and 2002, respectively.

Special attention to the poorest PAPs and

vulnerable groups

The Project has recognized the

indigenous nature of most of the
PAPs, and has sought to ensure
that all outcomes adequately
take into account such special
characteristics. The needs of
vulnerable households have been
taken into account in developing
programs and activities.

Full resettlement costs to be reflected in

Project costs and benefits

The Resettlement Program was

fully budgeted within Project cost.

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

4.3.5

Resource Compensation

4.3.5.1 Forest
Governor of Papua Decree No. 184 of 2004 sets out requirements and standards for payment of
compensation for adat trees collected from hak ulayat forest within the Province of Papua. The
requirement is imposed on the holders of HPH or IUPHK (forest concession license), IPK (a tree
cutting permit) and other valid licenses issued in the Province of Papua.
The total amount of compensation to be paid is based upon the volume of

wood cut. The

compensation requirements depend on the species of tree. The payment of compensation for the
adat trees under the Decree is deemed to include payment of compensation for use of land, access
road, vegetation, trees, logs, and materials used for the access road, and the setting up of a base
camp. The compensation should be paid to the adat community that has rights to the trees based
upon the adat community meeting (hasil musyawarah adat). The existence of the adat community
and the owner of hak ulayat trees should be specified in a Bupati (Regent) decree on the basis of
the adat community meeting, and with inputs from Head of District, the holder of HPH/IUPHK/IPK
and the adat community concerned.
The compensation should be used wholly for the benefit and interest of the relevant adat community
in order to support development of a) the economy of the community, b) adat institutions, c) village
and public utilities, d) education and/or e) religious purposes (all of which are to be determined
on the basis of the adat community meeting). The Bupati and Head of Forestry in the Province of
Papua will monitor the payment of compensation, as well as the use of such compensation.
4.3.5.2 Cultivated Plants
The Decree of the Bupati of Manokwari No. 213 of 1997 sets out guidelines for the price of land
and vegetation located within Kabupaten Manokwari. The first attachment to the Decree sets
out guidelines for land prices on the basis of the location and at specific areas within Kabupaten
Manokwari. The second attachment sets out guidelines for the price of vegetation/cultivated plants
pursuant to the type of vegetation located within Kabupaten Manokwari. The guideline price for
vegetation is calculated in rupiah per unit of vegetation (except for the price of rice plant and a few
other plants).
This Decree has been replaced by a further decree, No. 394 of 2003, which sets out revised price
guidelines.
4.3.5.3 Marine Rights
Law No 9 of 1985 on Fisheries (replaced in late 2004, see below) stated that the Government
of Indonesia has the authority to manage fishery resources. This is primarily carried out through
licensing activities aimed at regulating access to, and the nature of, fishing activities; conserving
marine resources, and generating income for both central and regional governments. The law states
that any individual or legal entity carrying out a fishery business must obtain a fishery business
license, which separately regulates such business including the fees that must be paid.
The law makes it clear that the position of traditional fishermen and those who are dependent
on fishing as their sole source of income is to be treated differently. One of the concerns of the
statutory regime is to protect small-scale fishermen. The law provides that traditional fishermen
and fish farmers who catch or breed fish as their sole means of income (in order to meet their daily

4 The Policy and Legal Framework for Project-Affected People

53

consumption) are not obliged to obtain a permit for their activities, and are exempt from certain
government imposed fees. A government regulation confirms also that fishermen carrying out
fishing activities using non-motorized fishing boats or an outboard motor of specified capacity are
also not required to obtain a fishery business license or to pay the levy which is imposed on fish
catches (a percentage based on the selling price of fish).
The new law on Fisheries, Law No. 31 of 2004, contains no
significant
modification to the concepts
set out under Law No 9. The authority of the Government, however, with respect to the policymaking on the management of fishery resources, is expanded. There are specific provisions
requiring development of an information system database and statistical information with regard to
fisheries. There are also provisions on research and development as well as education and training.
Regarding the protection of small-scale
fishermen and fish farmers, Law No. 31 contains the same
concept as the old law. In addition, there are specific provisions with regard to assisting small-scale

fishermen and fish farmers. The Government is required to empower small-scale fishermen and
fish farmers through the provision of a working capital loan scheme, with low interest rates, that is
both accessible and affordable. It is required to provide education, training and counselling to smallscale fishermen and fish farmers and to encourage the development of associations and fishery
cooperatives.
Law No. 31 confirms that both small-scale

fishermen and fish farmers are permitted to carry out

their activities within the entire fishing territory of Indonesia. However,

they are
required to comply
with regulations relating to conservation and any other regulations as stipulated by the Minister.
While not being required to pays fees, they are required to report their activity to the relevant
fishery authority, to facilitate the collection of statistical data and the empowerment of small-scale

fishermen and fish farmers.

4.4

Implementation of Policy and Legal Framework for Compensation

4.4.1

Compensation in Relation to Seismic Surveys

In the 1990s, Atlantic Richfield, Inc. (ARCO) and British Gas (BG) implemented exploration activities
in Berau and Bintuni Bays. The companies implemented both onshore and offshore activities.
Onshore activities involved the establishment of transect lines and required felling of sago and nipa
palms and small diameter forest trees. As indicated in Section 4.2, the communities where onshore
activities were implemented experienced temporary impacts attributable to the Project, and as
such are recognized as Project-Affected People.
Both ARCO and BG provided compensation to the affected communities in relation to such
activities. Discussions with former ARCO employees implementing exploration phase seismic work
in the north shore communities of Tomu/Ekam and Weriagar/Mogotira indicate that: (a) estimation
of compensation due for felling of sago was based on sampling of sago density on transect lines
with subsequent extrapolation to estimate number of sago plants affected; (b) final settlement
was based on negotiations between the communities and the company. Appropriate compensation
levels were determined with reference to the 1997 Bupati decree defining compensation levels for
productive plants; (c) compensation was paid to the village head during a community meeting.

4.4.2

Compensation for Land Acquisition and Resettlement

The Project has acquired rights to two plots of land, 3,266 ha required for the LNG plant site, and 200
ha required for the resettlement of the villagers of Tanah Merah. Subsequently, to accommodate

54

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

the preference expressed by the Tanah Merah community to separate into two groups, a third
parcel of land was made available to accommodate the villagers who elected to resettle in Onar.
This land was provided by the Agofa clan to accommodate their (and the Siwana and Wayuri clans)
preference to relocate to Onar.
4.4.2.1 Consultations
In 1999, recognizing the special nature of hak ulayat land, initial discussions with local government
led to the setting up of the Tim Penyuluh (Guidance Team) to guide and monitor the process. This
team, established by the government, included representatives of various Government agencies.
Its role was to assist both the community and the Project in achieving a land acquisition that would
enhance the development of the community and facilitate further development and investment in
Bintuni Bay. This underlying aim was reflected in the work plan that required the team to take into
account the development of the community, social and cultural aspects of the land, the participation
of the community in Project activities and the relocation of the villagers. Further details of the
appointment and role of Tim Penyuluh appear in Section 7.5.2.1.
Socialization meetings were held with the local communities, including landowners, villagers and
owners of cultivated plants. These meetings aimed to ensure that the communities understood
the nature of the Project, the extent of land acquisition required, the need to relocate Tanah Merah
village and the implications of this for the area. Simultaneously, the meetings allowed the Project to
understand the concerns of the community, to identify the ways in which they used the land, and
the land- and resource-related rights recognized by the community. At the close, the communities
expressed their agreement to have the plant located near Tanah Merah and their willingness to
relinquish traditional land for the construction of the plant and to be resettled to Tanah Merah Baru.
The Project carried out surveys and mapping together with the clans to establish the boundaries of
the adat land. Further details of community consultations regarding land acquisition and resettlement
are provided in Section 7.5.2.2.
After BP acquired ARCO in 2000, BP carried out a detailed evaluation of the options provided
for the resettlement sites. The outcome of this process (described in detail in Chapter 7) led to
the community being given the opportunity to confirm their preferred resettlement site. Twentysix households elected to move to Onar rather than Tanah Merah Baru. Consequently the Project
committed to developing another village at Onar thereby increasing the complexity of land acquisition
and resettlement but taking into account the preferences of the affected families (as discussed in
Section 7.5.1).
4.4.2.2 Agreed Framework
Several principles underpinned the approach adopted by the Project with respect to agreeing upon
compensation. Taking into account the special characteristics and vulnerabilities of a traditional
community, the negotiating team in 1999 aimed to achieve a compensation package that would
bring long-term sustainable benefits to the affected communities, while minimizing adverse impacts
on social harmony. It was recognized that while the payment of cash was necessary, injections of
large amounts of cash into such a limited economy would have had a severe, detrimental effect
not only on the immediate communities, but also in the greater Bintuni Bay area. After several
meetings between the Project, the resettlement-affected communities, community advisors and
government, it became clear that a compensation package comprising cash and in-kind benefits
would be the most effective way of addressing the complex social and cultural issues associated

4 The Policy and Legal Framework for Project-Affected People

55

with the land tenure and use rights affected by the Project. This was particularly appropriate as the
majority of the members of the land owning clans lived in Tanah Merah, Saengga and Onar.
Once the concept of a package of mixed compensation was established, consultation took place
to identify the nature of the in-kind benefits which would be appropriate and acceptable to the
resettlement-affected communities. A series of negotiation meetings took place between the
Project, the landowners, the villagers and community advisors to: (a) establish ownership and
appropriate compensation for land acquisition; (b) agree upon in-kind benefits to be provided, and
(c) to agree upon ownership and compensation for sago and cultivated plants, loss of buildings,
and restrictions on access and use. (These meetings are described in Section 7.4.) As a result,
cash payments for land and associated rights were made, together with commitments to provide
significant non-cash compensation in the form of social and physical infrastructure and other
development benefits.
4.4.2.3 Eligibility for Compensation
Eligibility for compensation was initially established in the 1999 Agreements. In March 1999 the
Project conducted a survey to identify landowners and land boundaries and to establish Sumuri tribe
statistics. These divisions of ownership are illustrated in Figure 4.1. The ownership of the 3,266 ha
purchased for the plant site was held under traditional land rights by three Sumuri tribe clans: the
Simuna clan owned 500ha; the Wayuri clan owned 1,866 ha, and the Sowai Clan owned 900 ha.
The Simuna clan held traditional land rights to a further 200 hectares of land acquired in connection
with the resettlement site. Table 4.3 provides estimates of the percentages of clan landholdings
released to the Project. The Sowai clan became landless as a result of land release. The Wayuri
retained some land while the Simuna released only a small fraction of their total landholdings.
Figure 4.1 Boundaries of Sumuri Tribes Clan Land Holdings

56

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 4.3 Project Acquisition of Clan Landholdings

Clan

Area Sold (ha)

% of Total Area Acquired

% of Landholdings Sold

1,866

53.8

95

Sowai

900

26.0

100

Simuna

700

20.2

TOTAL

3,466

100.0

Wayuri

The three land-owning (and hence land-selling) clans were identified and the cash portion of the
compensation was paid to the appointed clan representatives, and distributed by them among clan
members.
Entitlement to the in-kind benefits (including housing) outlined above was established with reference
to the censi carried out in Tanah Merah, Saengga and Onar . Specifically, entitlement to houses was
decided by reference to families resident in Tanah Merah and Saengga village at the time of the
census, together with consultation with the village to verify the results of the census. Details of
eligibility and entitlements are elaborated in the minutes of two village-level workshops that took
place in 2001 and 2002.
Subsequent recognition of Onar Lama as a host village led to Project commitments to institute a
community-based and locally appropriate housing program for the Onar Lama community. Eligibility
for this program was also determined by reference to the 2002 census described above.
4.4.2.4 Agreed Compensation for 1999 Land Acquisition and Resettlement
Establishing a specific value for the land for the plant and the resettlement site was difficult because
no market for land existed in that area. Some indication of value was provided in the Decree of
the Bupati of Manokwari No 213 of 1997. This sets out guidelines for land value, suggesting that
rural land outside Kabupaten and Kecamatan towns would be valued at between IDR3050/m2.
However, the Government was concerned about the negative effects, both inflationary and in terms
of sustainability, which a substantial amount of cash compensation would have. It encouraged
the Project to find a way of resolving the compensation issue that would facilitate sustainable
development in both the affected communities and the vicinity of the Project. In accordance with
Government recommendations, a lower cash amount of IDR15/m2 was provided together with an
in-kind compensation package. In summary, compensation included the following:
Cash compensation to the Simuna, Wayuri, and Sowai clans (the land-owning

clans from whom the Project intended to purchase land) in relation to the
acquisition of the 3,266ha of land required for the LNG plant;
Cash compensation to the Simuna clan for relinquishing 200 ha of land for

the relocation of villagers from Tanah Merah and for the land under Sumuri
(Saengga) village;

 Figures are estimates only and are based on reference to the existing clan resource ownership map
presented in Figure 4.1.

The census in Tanah Merah took place in October 2001 and the census in Saengga and Onar in
March 2002. Design and implementation is detailed in Chapter 5.

4 The Policy and Legal Framework for Project-Affected People

57

 Construction of new houses for Tanah Merah villagers at the resettlement site;
Improvement/renovation of existing houses of the residents of Sumuri

(Saengga) village;
Provision of land with certified ownership of house lots for the resettled

villagers of Tanah Merah at Tanah Merah Baru and the residents of Sumuri
(Saengga) village;
Payment of taxes/fees associated with the certification of the land at the

resettlement sites and Sumuri (Saengga) village;

Construction of public and social facilities at the resettlement site for use by the

resettled Tanah Merah Baru community and the residents of Sumuri (Saengga)
village;
Provision of garden sites for the resettled village and the residents of Sumuri

(Saengga) village;
Provision of additional empty plots for construction of houses in the future (at

the expense of the villagers);

Relocation of cemeteries/graveyards to the resettlement site;
Honouring of sacred places located on the site to the extent permitted by the

construction plan for the plant.

Subsequently, following the request from a subgroup of Tanah Merah households to move to Onar
rather than Tanah Merah Baru (described in Section 7.3), the Project agreed to support the building
of houses and public facilities at Onar. Households electing to move to Onar were informed that the
commitment of the Project to facilitate the grant of certified land title for houses would be more
difficult to achieve at Onar because of the land ownership status (refer to Section 7.5.1). While
the Project was initially intending to pursue an in-fill model for village construction in Onar Lama,
discussions with the 26 families led to agreement to construct a separate and distinct settlement
east of Onar Lama. As a consequence of this decision Onar Lama achieved host village status
and a community-based locally appropriate housing program was developed for the Onar Lama
community.
4.4.2.5 Refining Commitments
A description of the Project and its likely effects on the communities was provided in the various
meetings that took place in the first half of 1999, described further in Section 7.5.2.2. Following the
execution of the 1999 Agreements and prior to commencing construction,, the Project recognized
that it would be necessary to familiarize the communities with the detailed activities that were to
take place and the impact these would have on the existing environment. As familiarity increased,
the community itself raised new issues and sought clarification of previous decisions. Two
workshops provided benchmarks for further defining Project commitments to the resettlementaffected communities.
In March 2001, a workshop with the Tanah Merah community provided opportunity to consider various
aspects of the resettlement. Participants at the workshop included members of the communities
of both Tanah Merah and Saengga, representatives from the University of Cenderawasih,
Jayapura (UNCEN), local government, representatives of the Manokwari regency and significant
individuals from Bintuni Bay. Project representatives were also present. Detailed discussions took
place regarding the new village, its design and the public utilities, including lighting, clean water,

58

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

drainage and waste disposal. The community was consulted about the type of house that would
be constructed by the Project. Following the conclusion of the workshop, the community signed a
letter setting out the requirements for the houses, specifying that houses were to be built of wood,
of a minimum size and provided with electricity and clean water.
Following the decision in January 2002 of the 26 households from Tanah Merah to move to Onar
rather than to Tanah Merah Baru, it was necessary to further clarify the number of houses and the
public facilities which would be built at each resettlement site. In August 2002, after community
meetings, an agreement relating to the construction of houses, public infrastructure, facilities and
utilities at Tanah Merah Baru and Onar was executed. This consolidated the various agreements on
houses and facilities to be provided by the Project, specifying in detail what was to be constructed
at the resettlement sites of Tanah Merah Baru and Onar. An associated agreement set out issues
that required further discussion. This included a request to consider the status of the land being
utilized for the LNG plant when it was no longer required by the Project. The community requested
that the land should be returned to the traditional owners and that the Government should issue a
written statement to this effect.
A second workshop involving the Sumuri (Saengga) village community was held in August 2002 to
discuss the impact of the Project on Saengga village. The workshop dealt with community access
to natural resources, employment prospects with the Project, community development, traditional
law, human rights, the nature of the infrastructure to be constructed at Saengga, and support
for the village. Again, the workshop gave the community an opportunity to discuss aspects of
the 1999 Agreements in more detail and allowed the Project and local government to confirm its
commitments.
In this way the Project and the resettlement-affected communities have engaged in a continuous
dialogue that has yielded greater awareness and understanding of the Project and its commitments,
thereby resulting in additional agreements that further refined the 1999 land acquisition and
resettlement agreements.
4.4.2.6 Key Compensation Components
Housing: The 1999 Agreements set out the Project commitment to provide both houses and empty
plots for the community of Tanah Merah that was to be resettled and the villagers of Saengga.
Specific numbers were not included in the 1999 Agreements, although the agreements stated that
the number of houses was to be established with reference to an inventory of houses.
The Tanah Merah workshop in 2001 led to an agreement that the Project would construct 76 houses
and provide 61 empty parcels of land. In August 2002, a final agreement on houses and other
infrastructure in Tanah Merah Baru and Onar was concluded. Based on the censi, the Project agreed
to construct 101 houses at Tanah Merah Baru and provide 54 empty plots and to build 26 houses at
Onar. Together with the additional infrastructure at Onar, this agreement represented a significant
increase in the original Project obligations.
Separately the August 2001 workshop with the Saengga community led to an agreement for the
Project to construct 94 houses and various public facilities in Saengga village.
Land Title: The Project will facilitate applications for Hak Milik land title for each household in Tanah
Merah Baru and Saengga to whom a new house has been allocated. The Project will facilitate
applications for land title in the name of each household, and the Project intends that title will be
in the name of both husband and wife, as representatives of each household. The procedure for

4 The Policy and Legal Framework for Project-Affected People

59

acquisition of title will entail submitting an application with all necessary supporting documents to
the Land Office, mapping the boundaries of each plot and payment of various fees.
The Project will also facilitate the grant of land title to the 26 households in Onar. However, this
will only be possible with the full cooperation of the Agofa clan and the local government. During a
meeting with the local government and representatives of the Agofa clan, both confirmed that they
would also support the process of gaining Hak Milik rights for the 26 households moving from Tanah
Merah. This agreement was documented and witnessed by representatives of the regency, Tanah
Merah and Saengga government officials.
The applications for land title for the villagers will entail submitting an application to the local Land
office in the name of each individual household, together with copies of all necessary supporting
documents. These documents will include the identity card of the individuals representing the
household, copies of agreements evidencing the relinquishment of the land, the Building Permit
(IMB), a map showing the boundaries of the plot of land, and the Settlement Agreement (described
in Section 4.5.2.4 below). For households in Tanah Merah Baru, the Project will facilitate the
submission of Hak Milik land title applications with the Land Office in 2006. Applications for land
title for Saengga households will occur after completion of the Saengga Renovation Project. The
Project will meet all costs associated with the grant of land title to the villagers.
The Project will also facilitate the grant of land title to the vegetable and agroforestry plots that
have also been allocated to the households. This is currently being discussed with the local Land
Office.
Public Facilities, Infrastructure and Services: The Project has provided many public facilities (including
community buildings, places of worship, schools, clinics and houses for religious figures, teachers
and doctors and nurses) at Tanah Merah Baru and Saengga, and to a lesser extent at Onar.
Unlike the houses, which will be handed over to individual households pursuant to the Settlement
Agreement (described in Section 4.5.2.4 below), the public facilities will be handed over to the
community and/or local government as appropriate. The villagers of Tanah Merah Baru and Onar
Baru, local government and the Tangguh Project have agreed upon a phased handover of ownership
and management responsibilities for village facilities and utilities. Such handover will occur: (a)
in accordance with national, provincial or regency laws and regulations; (b) after the village has
ascertained permitting requirements and set preconditions in place; (c) after the village has
established rules and regulations pertaining to use, and (d) after appropriate capacity has been
developed to ensure sustainable operations. Handover of any given infrastructure, facility or utility
will be effected by a Handover Agreement, which will include an agreement by the community
to maintain the facilities and a commitment to use them only for the purpose for which they are
intended.
4.4.2.7 Additional Recognition and Compensation
In the period following the execution of the 1999 Agreements and the delivery of the benefits
specified in those agreements, the on-going process of consultation and empowerment of the
clans and communities has resulted in further claims for additional compensation and recognition
of natural resources.
While it was recognized that international standards for land acquisition and resettlement require
development of a comprehensive entitlement matrix, by the time BP acquired ARCO in 2001
key components of the compensation package had been developed and implemented within an

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Indonesian legal framework. Therefore the Project addressed claims for further recognition and
compensation on the basis of: (a) an acknowledgement that in 1999 ARCOPERTAMINA utilized
a land compensation and acquisition framework that was in accordance with Indonesian legal
requirements; (b) further recognition and compensation would only be provided on the basis that
the Project is committed to a land acquisition and resettlement program aligned to international
guidelines which require a more comprehensive entitlement and compensation framework than
that required under Indonesian law, and (c) recognition of the disconnect between the adat concept
and application of rights of the indigenous population and the statutory Indonesian legal system.
Accordingly, within the existing framework, the Project has continued to address recognition and
compensation through a dynamic and responsive process involving various stakeholders including
international advisors on resettlement, Project management and resettlement-affected communities.
The overall resultinvolving intensive consultation and empowerment of affected groups over a
lengthy time periodhas created an acceptable, locally owned and appropriate recognition and
compensation agreement. The latest document in relation to this was signed between the Project
and the clans in March 2005. It relates to a number of issues including compensation for hak
ulayat trees and Agathis spp. trees which are felled by the Project, the recognition provided by the
Foundation for the three clans loss of land and marine rights, the relocation of specified sacred
sites, and the provision of further support by the Project in relation to the return of ownership of the
land to the adat communities of Sowai, Simuna and Wayuri.
4.4.2.8 Compensation for Trees, Plants and Sago
In 1999 rights relating to cultivated plants (crops and trees) and sago were acquired and compensation
negotiated and paid. Compensation for cultivated plants and sago was documented in two separate
Minutes of Agreement. Compensation for plants was calculated in accordance with the Decree of
the Bupati of Manokwari No. 213 of 1997. Compensation was paid in accordance with an inventory
drawn up by both parties. It was agreed that no compensation would be paid for plants coming into
existence after the inventory. For all sago plants on the site acquired for the LNG plant, a single
lump sum payment of Rp75 million was agreed upon and provided to the clans. Compensation for
cultivated productive trees growing on the resettlement sites in Tanah Merah (Baru), Saengga and
Onar was provided, at the time of clearing for construction in 20032004, with compensation rates
being based on the 1997 Bupati Decree.
The 1999 Agreements specify that the cash and in-kind compensation package includes compensation
for land and trees on the LNG and resettlement sites and such compensation is provided for the
release of hak ulayat claims to both the land and all things growing upon it. Accordingly, there is no
legal requirement to pay further compensation. However the three land-selling clans have continued
to expect that payment should be made for trees felled in connection with Project activities. This
claim has been fuelled by the post-autonomy (and post-1999 Agreements) Decree of the Governor
of Papua in 2001 that requires timber concession holders to pay compensation to adat communities
for timber collected on hak ulayat land. The Project has recognized the importance of these issues
for the community.
The Project will provide additional payments for trees felled to allow construction to proceed.
Payment will be made in accordance with the Governors Decree for any non-cultivated trees that
are felled on the 3,266 ha acquired for the construction of the LNG plant and the 200 ha acquired
for resettlement. Payment will be made only for felled trees identified in the Governors Decree
and in accordance with the rates specified. Payments will be made at the time the trees are felled,
by reference to a cutting and measurement log agreed upon by both Project and the owner of

4 The Policy and Legal Framework for Project-Affected People

61

the trees, in accordance with the Governors Decree or any amendment or updated version of
the Decree. No additional compensation will be paid for naturally occurring forest trees that are
not felled. Such trees will remain in situ and, as indicated in Section 4.5.2.6, form part of the
governments commitment pertaining to return of the land following completion of the Project.
Since 1999, both clans and individuals have raised the issue of compensation for the cultivated stands
of Agathis spp. occurring on the site. The Bupati Decree referred to above does not recognize damar
(the local name for several tree species characterised by production of an aromatic, inflammable
resin) as a cultivated species, reflecting the fact that the majority of dammar trees are naturally
occurring. In assessing how best to address claims for compensation for cultivated Agathis spp.,
the Project recognizes that historically the value of the Agathis spp. centred upon the collection and
sale of the resin but that given that these markets no longer exist, the value of the Agathis spp.
stands now resides in the timber only. The Project has agreed:
Where Agathis spp. have to be felled to allow construction to proceed, the

Project will provide compensation at a rate of IDR50,000/m3 for felled timber (a

rate based on the values designated for ironwood (Intsia spp.; locally known as
kayu besi or merbau) in the Governors Decree).
For Agathis spp. stands within the Project site that are not felled but for which

access will be curtailed for the duration of the Project, the Project will either
provide compensation or facilitate access, this being based upon the safety and
operational requirements of the LNG facility.
4.4.2.9 Compensation for Marine Rights
The Project recognized from the outset the importance of fishery activities for the affected
communities, and has identified the development of such activities as one of the most effective
ways to restore livelihoods and increase incomes. Details of the Fisheries Access and Development
Program are provided in Chapter 9.
Discussions regarding fishing activities and fishing rights within the resettlement-affected
communities occurred during the initial consultation and socialization meetings in 1999. Following
these initial discussions and a number of general studies that included details of fishing rights
and activities, the Project contracted URS to undertake a study of the impact of the resettlement
process upon fishery activities in Tanah Merah. One of the aims of the report was to identify the
type of fishing rights existing within the area and, with regard to Tanah Merah, the way in which
both these rights and villagers fishing activities would be impacted by the resettlement and Projectrelated activities. In preparing the report, URS conducted a series of workshops, interviews and
discussions with the community.
One of the conclusions of the report is that the nature of fishing rights in the area involves: (a) the
clan-based hak ulayat rights to marine resources, and (b) villagers rights to utilize these marine
resources. For the Sumuri, clan-based hak ulayat rights to marine resources are defined for the
area of ocean directly in front of the land area over which hak ulayat rights exist. Householdlevel
commercial harvesting of prawns is the main use of these marine resources. Each fisherman is
required to pay a tax to the clans holding hak ulayat rights to the marine resources and to the village
within whose area the fishing grounds lie. In practice, such payment occurs through middlemen (i.e.,
traders) operating in the village. In addition, where commercial fishery companies access artisanal
fisheries, the clan leaders and the village government also receive payments in recognition of the
fact that harvesting of marine produce is taking place within the clans and village fishing grounds.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Finally, it should be noted that while all members of the Sumuri tribe can fish any Sumuri clan fishing
grounds, reasons such as distance from fishing grounds, transport costs, etc. generally preclude
people outside the village from using the fishing grounds under the jurisdiction of the village. Thus,
the villagers of Tanah Merah and Onar will fish in the sea area in front of their respective villages,
while the villagers of Saengga will fish in the sea area on each side of the Saengga River.
As a practical illustration of the principles outlined above, in Tanah Merah traders reported that
they paid IDR500/kg of prawns harvested to both the relevant clans and village government. Clan
payments were reported to be shared equally between five clans, namely the Sowai, Wayuri, Agofa,
Masipa and Kamisopa. Based on field data indicating a total annual catch of 1015 tonnes, these
payments may be in the order of US$500750 per annum to (i.e., US$100150 per clan). In addition,
the commercial fisheries operator WIMRO made a payment to the clan leaders and the village
government of IDR600,000 (US$60) every four months in recognition of the fact that harvesting of
marine produce was taking place within the clans and villages artisanal fishing grounds. (WIMRO
ceased operations in early 2005.) Hence it is clear that the on-going monetary value of hak ulayat
marine rights is very low.
As described in Chapter 2, the Tangguh Project encompasses three license blocks within which
it operates. Initial Project development plans involve construction of two offshore platforms, a
submarine gas transmission pipeline, an onshore LNG processing facility and affiliated infrastructure
(i.e., seaport, airport). When brought into operation in 2008, marine safety exclusion zones will
be established and enforced. (Figure 2.3 illustrates the location of these facilities and associated
exclusion zones).
From the outset the Project has been aware that the imposition of marine safety exclusion zones
may impact upon communities and commercial fisheries enterprises access to and harvest from
selected fishing grounds. The marine safety exclusion zone associated with the plant will impact
upon the hak ulayat rights of the Sowai and Wayuri clans and will restrict villagers access to and
use of traditional fishing grounds located within the safety zone. With regard to marine safety
exclusion zones associated with the offshore platforms and submarine gas transmission pipeline,
specification of the planned location of the offshore platforms in early 2005 demonstrated that they
were located in deep waters not subject to artisanal fisheries. Hence it was assessed that there
would be no impact on village-level artisanal fisheries.
With regard to potential impacts on commercial fisheries, in early 2005 the Government of Indonesia
reduction in fuel subsidies and the associated increase in fuel costs led to the closure of commercial
fishing operations in the Bay. Separately a Project-commissioned Study on Sustainable Fisheries in
Teluk Bintuni also indicated that the majority of commercial fisheries operations were not properly
permitted. Hence, going forward, no impacts on commercial fisheries are anticipated from the
establishment and enforcement of marine safety exclusion zones. Prior to the start of operations
the marine safety exclusion zones will be verified and placed on nautical maps by the Ministry of
Communications.
On the basis of the information above, the Project recognizes two types of fishing rights that will be
affected by resettlement and the construction and operation of the Project.
Firstly, traditional rights of the clanslinked to hak ulayat of the landwill be affected. For the
Tanah Merah site acquired by the Project, these rights belong to the Sowai and Wayuri clans while
for Tanah Merah Baru and Saengga, rights belong to the Simuna clan. In Onar, the Agofa clan did

 UNIPA (2004) Study on Sustainable Fisheries in Teluk Bintuni.

4 The Policy and Legal Framework for Project-Affected People

63

not release any marine resource rights to the Project to support resettlement. Rather, the impact of
resettlement is to increase resource use intensity. Table 4.4 provides estimates of marine resource
rights released to the Project.
Table 4.4 Estimated Clan Release of Marine Resource Rights

Area Sold (ha)

% of Total Area
Acquired

Marine Resource
Rights Released
(km of coastline)

% of Marine
Resources Sold

1,866

53.8

10.0

100

Sowai

900

26.0

6.0

100

Simuna

700

20.2

1.5

TOTAL

3,466

100.0

17.5

Clan
Wayuri

Figures are estimates only and are based on reference to existing clan resource ownership maps.

Secondly, rights of access to artisanal fishing grounds located within the marine safety exclusion
zone associated with the LNG site, which generally relate to the village and to individuals within the
village, will be impacted.
In light of the above, the Project has addressed two issues related to marine resource use and
access. First, with regard to hak ulayat and the revenue stream that specific clans derive from use
of their marine resources, compensation has been provided through the Foundation (described in
Section 4.4.2.10, below). Second, reduced access to artisanal fisheries and loss of potential income,
whether deriving from the enforcement of the marine safety exclusion zone, smaller proximate
fishing grounds (e.g., Tanah Merah Baru) or increased intensity of harvesting on existing grounds
(e.g., Onar, Saengga and Tanah Merah Baru), will be mitigated through the Fisheries Access and
Development Program articulated in Chapter 9.
4.4.2.10 Foundation
In 2002, the Project established a development foundation. The Project elected to establish an
endowment fund that generates benefits in perpetuity, because such a vehicle moves the Project
away from cash valuation of specific resources and is more in keeping with the particular nature
of the resources to which it relates. All land and marine resources affected by the Project are
included and, in recognition of the difficulty of assigning an economic value to these resources, the
endowment fund, generating benefits in perpetuity for subsequent generations, is an appropriate
vehicle for answering compensation concerns regarding these assets.
The Foundation is a legal entity under Indonesian law, established by a Deed of Establishment
executed before a notary. The basic structure of the Foundation is set out in applicable law, and
requires the setting up of Boards of Trustees, Supervisors and Managers, each of which has specific
duties and obligations with respect to the running of the Foundation.
Based on a series of consultations, described in more detail in Chapter 7, the modus operandi of the
Foundation has been defined as follows:
It will function primarily as a three-clan foundation, specifically targeting the

current and future generations of the three land-selling clans, while a small
percentage will be allocated to the Sumuri tribe to support education.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

 Benefits from the Foundation will be delivered in accordance with an

entitlement formula, which reflects each clans loss of natural resource-based

assets (Table 4.5). Benefits will be weighted based on consideration of loss
of natural resource-based assets, i.e., land resources lost (area of land lost,
percentage of total land holdings lost) and marine resources lost (coastal
frontage lost and percentage of total coastal frontage lost). Percentage
entitlements, once established, will remain constant.
Benefits from the Foundation will also be given to the Sumuri tribe generally.

It has been agreed that 10% will be allocated for educational purposes. This
benefit has been given in recognition of the desire to reduce the potential for
conflict and ensure as broad a distribution of benefits as possible.
The Foundation has been endowed with an initial sum of US$750,000. This will

be increased over a five-year period, in annual increments of US$250,000, to a

total base fund of US$2,000,000. A fund manager will be nominated to manage
and invest the funds. The investment strategy will balance risk with returns
and aim to generate maximum sustainable returns within the global economic
climate. To provide an example, at interest rates of 1% the fund would generate
US$20,000 per annum while at 5% returns would generate US$100,000 per
annum. Based on the entitlement formula outlined above, all clans will derive
benefits significantly above previous returns (as described in Section 4.4.2)
from use of resources surrendered to the Project.
An up-front release of funds (distinct from the endowment) from the

Foundation will be made directly to each of the three land-selling clans and to
the Sumuri generally. The funds will be used to facilitate development activities.
This initial release of funds from the Foundation will be made on the basis of
the delay in implementing the Foundation. The initial up-front release involved
the allocation of US$130,000, shared between the clans and the Sumuri tribe in
accordance with percentage allocations defined above.
Table 4.5 Calculation of Percentage Entitlements based on Loss of Natural Resource Based Assets

Clan

Area
Lost
(ha)

% of
Total
Area
Lost

% of Landholdings
Lost

Marine
Rights Lost
(km of
coastline)

% of
Marine
Rights
Lost

Wayuri

1,866

53.8

95

10

100

35

Sowai

900

26.0

100

100

30

Simuna

700

20.2

1.5

25

Sumuri

TOTAL

Other
Considerations

Agreed %
Entitlement

10

3,466

100.0

100

While the Foundation has been legally established, the internal rules of operation or bylaws have
not yet been drawn up. These will be drawn up in consultation with the clans, and will detail the
way in which applications for benefits will be made, approved and implemented. The proposed way
forward is that members of the clans, assisted by technical assistants funded by the Foundation,
will prepare requests for funding which will be submitted to the administrator for approval. The
Project intends to appoint an independent advisor to develop a fund investment and management

4 The Policy and Legal Framework for Project-Affected People

65

strategies. It is also proposed that the Project recruit an NGO to become the administrator of the
fund for a 35 year period.
4.4.2.11 Summary of Compensation Provided to Clans Relinquishing Hak Ulayat Land Rights
Acquisition of the 3,466 ha of land to support development of the Tangguh Project has required the
relinquishment of hak ulayat claims to the land held by three clans of the Sumuri tribe, namely the
Sowai, Wayuri and Simuna.
Table 4.6 summarises the final compensation package for the three clans relinquishing hak ulayat
claims to the 3,466 ha of land acquired by the Project. When the value of the compensation package
is presented on a IDR/m2 or IDR/ha basis, the compensation rates are IDR716/m2 or IDR7,158,800/
ha. This figure compares favourably with reported rates for land acquisition by other companies in
the vicinity of the Project (IDR6/m2 ) as well as government decreed rates of land compensation for
interior (rural) lands outside of kabupaten and kecamatan towns recognized as tanah adat or over
which hak ulayat rights are recognized (IDR30-50/m2 ).
Table 4.6 Summary of Compensation Provided to Clans Relinquishing Hak Ulayat Land Rights

No

4.4.3

Item

Value (US$)
(Rp15/m2)

1999 Cash Payment

Foundation

Initial disbursement of Foundation

130,000

Hak Ulayat Payment of Felled Trees

300,000

TOTAL

51,990
2,000,000

2,481,990

Compensation for Possible Future Impacts

The Project has consistently referred to international policy and guidelines on compensation
and applied these with due recognition of the traditional (adat, hak ulayat) and legal bases for
compensation. The Project commits to utilizing this approach in the future, with emphasis being
given to:
Early identification of impacts and Project-Affected Peoples;
Consultations with identified Project-Affected People to ensure that all affected

parties are: (a) aware of and understand potential impacts, and (b) understand
and accept the proposed compensation framework;
Use of traditional and legal bases for compensation as appropriate.

To implement this approach, the Project commits to a continuous monitoring process to assess the
impact of any future development.
4.5

Implementation of Resettlement Specific Agreements

4.5.1

1999 Agreements
The initial step in the land acquisition and resettlement process involved discussions with the
local government and socialization meetings with the local communities (as described in Section
4.4.2.1 and Chapter 7). After negotiation meetings, Minutes of Agreement were signed. Separate
documentation was prepared for the plant site and the resettlement site, and two Minutes of

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Agreement were signed in relation to each parcel of land. For each parcel, agreement was achieved
over a period of four months: one set of the Minutes was signed in May 1999 and a further set
was signed in July 1999. Together these Minutes set out the agreements relating to respectively
the plant site and the resettlement site. The time taken to finalize the Minutes was significant in
allowing the communities to express their wishes, to arrive at consensus between themselves and
to reach agreement with the Project.
Once the compensation package was agreed, two Deeds of Relinquishment legally affecting the
release of the land were executed. In these Deeds, the holders of the land rights made it clear that
the relinquishment of rights was for the purpose of the Tangguh Project and confirmed that they had
irrevocably relinquished their rights to the land and their hak ulayat. In connection with the Deeds of
Relinquishment, separate minutes of payment of compensation with regard to the cash portion of
compensation were executed. Further details of documentation appear in Appendix 4.2
The land acquisition procedure at Onar, taking place much later than the acquisition of the plant
and the resettlement site, has developed differently. Unlike Tanah Merah Baru, the 26 households
themselves largely carried out development at Onar, as many are members of the Agofa clan
that owns the traditional rights to the land. Consultation with both the Agofa clan and the existing
community at Onar followed the request of 26 households to move to Onar. The Agofa clan indicated
its willingness to relinquish land for the benefit of the 26 households. This land relinquishment will
be implemented by the execution of a Deed of Relinquishment by the Agofa clan. The Agofa will
retain traditional usage rights over the non-housing plot areas as well as their marine resource
rights.
4.5.2

Further Agreements
As indicated above, the Project has executed a number of additional agreements since 1999. The
process of developing these agreements involved village-level consultations to develop drafts of
the agreements and the subsequent review of these draft agreements. This process has facilitated
the relatively rapid development of mutually acceptable agreements.

4.5.2.1 Cemeteries
In 1999, it was agreed that the cemeteries at Tanah Merah would be relocated to the new
village. However, following requests from the Tanah Merah community, the Project agreed that,
for the period that the Project remains a two-train project as described in the approved AMDAL,
the cemeteries would stay at Tanah Merah. It was pointed out that this would be difficult and
there would be significant safety considerations involved in granting access. However, given the
sensitivity of the issues, the Project agreed with the request. An agreement to define access to
and maintenance of the cemeteries at Tanah Merah was signed in March 2004. This agreement
contains the following:
A commitment by the Project to safeguard and maintain the cemeteries;
An agreement regarding the days on which access is to be allowed to the

cemeteries;
A recognition that all access must take place in accordance with safety

procedures;
A commitment by the Project to provide transportation to the LNG site for all

those requesting access.

4 The Policy and Legal Framework for Project-Affected People

67

4.5.2.2 Sacred Sites

The 1999 Agreements commit the Project to honouring sacred places located on the site to the
extent permitted by the construction plan for the plant. Over time, the Project has identified various
sacred sites including: (a) the village cemeteries as described above; (b) an offshore group of rocks
known as the Batu Kumapa, and (c) various land-based sacred sites. The sacred sites primarily
belong to the Sowai clan. While relocation of the Combo Dock allowed the Project to safeguard the
offshore sacred rocks, the Project has no choice but to relocate the sites situated in the construction
area of the LNG plant.
The need to relocate such sites was recognized from the outset, and has been the subject of ongoing and detailed consultation over the past few years. Because of the nature of the sites and
their significance for the adat community, the clans have made it clear that it is not appropriate for
compensation to be paid, either now or in the future. Rather, they have requested the Project to
assist the community in ensuring that all appropriate adat ceremonies are carried out and that the
new spirit houses are properly prepared. The consultation process and Project facilitation of the
relocation of these sites is described in Section 7.6.4.
4.5.2.3 Land Boundaries Between Tanah Merah Baru and Saengga
With regard to the 200 ha of land acquired to support resettlement to Tanah Merah Baru and
renovation of Saengga village, the 1999 Agreements specified the allocation for land for construction
and agriculture but did not specify the location of the land within the 200 ha to be used for each.
Further the 1999 Agreements specify that the Project and the villagers of Tanah Merah and Saengga
would establish the land boundaries between the villages of Tanah Merah Baru and Saengga jointly.
The consultation process to establish the land boundary is described in Section 7.5.2. Once the
boundaries were agreed, an agreement was executed documenting both the process, and the
conclusion of that process.
4.5.2.4 Settlement Agreement
To facilitate the land title applications and to provide the villagers with preliminary evidence of
ownership to their individual plots and houses, the Project, prior to the move from Tanah Merah,
executed a Settlement Agreement with the heads of each household and their spouses. The
Settlement Agreement identifies the plot of land and the house allocated to each household, and
sets out the other benefits due to, and responsibilities of, the household. Specifically, the Settlement
Agreement defines:
The assistance to be provided by the Project in transporting household assets

from Tanah Merah to the new village;

The right of the household to dismantle their existing house in Tanah Merah;
The benefits that will be provided during the transition period, and
The Projects commitment to facilitate an application for certified land title.

Each household has also accepted a prohibition on sale or mortgage of the house and plot for an
agreed period. This prohibition was discussed and agreed with the community, on the basis that it
will promote stability and harmony in the new village and protect the more vulnerable community
members.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

4.5.2.5 Handover Agreements

As discussed above, the Project will facilitate the progressive transfer of ownership and obligations
of operation, maintenance and repair of infrastructure, facilities and utilities. Until the transfer is
completed, the villagers and, where relevant, local government have the right to use the facilities.
For each type of infrastructure, facility or utility a Handover Agreement will be executed, and will
contain the following:
Confirmation that the Project will hand over the facilities to the authorized

representatives of the village of Tanah Merah Baru, the local government or a

designated third party, for the benefit of the community of the relocated village
of Tanah Merah Baru and re-constructed village of Sumuri/Saengga;
Agreement that the appropriate ownership of the facilities and responsibility for

operation, funding, maintenance and repair will be decided and implemented

through an on-going process of consultation between the Project and relevant
stakeholders, including the Head of Tanah Merah Baru, the village government
(BAPERKAM), the TMRC, representatives of local government, and
representatives of religious groups, as appropriate;
Agreement that the consultation and final agreement regarding ownership of

the facilities and responsibility for operation will take into account the long-term
best interests of the community, applicable laws and regulations, adequate and
consistent funding, and the obligations set out in the 1999 Agreements and the
Further Agreements.
4.5.2.6 Post-Project Ownership of Land
By executing the Deeds of Relinquishment in 1999, the clans extinguished their traditional rights to
the land. As described above, by law these traditional rights are irretrievable. However, the clans
close association with the land and the understanding that the Project will use the land for the plant
site for a finite period only has led to discussion of what will happen to the land when it is no longer
required by the Project. To respond to this concern, the Project approached local government to
explore the possibility of having the land and associated usage rights revertin an appropriate form
and subject to public interestto the traditional landowners.
Based on broad consultations, the Bupati of Manokwari issued a letter in July 2002 addressed to
the Sumuri tribe. The letter refers to the adat land of the Sumuri tribe that is being used for the
Tangguh LNG Project in Tanah Merah, and states as follows:
In principle, the Government of Manokwari supports the statement made by the

Governor of Papua regarding the ownership of the land after the LNG Tangguh
operation ends. The Project will return the land to the Government and the
Government will return the ownership of the land to the adat community (the
Sowai, Simuna and Wayuri clans of the Sumuri tribe).
However, because the community that previously held adat rights has

released the land, the Government has the right to manage the use and future
control over the land, taking into account spatial layout, natural resources and
environmental preservation, and the interests of the previous owner.
The letter from the Bupati of Manokwari confirms that the Government will return the ownership
of land to the adat community of the Sowai, Simuna and Wayuri. However, the letter reflects the

4 The Policy and Legal Framework for Project-Affected People

69

legal position, in that relinquished traditional land rights cannot be revived. Any return of the land
which was previously held under hak ulayat rights is not, legally, a return, but a new grant of land to
the adat community. The nature of the new land rights is a matter for agreement between the State
and the adat community.
Following receipt of the letter, the clans have requested further assurance from the Government that
the land will be returned. Their concerns were fuelled by the changing political and administrative
environment in Papua. As a consequence, the clans have sought the assistance of the Project to
obtain any further confirmation that might be available in order to ensure that the land is returned as
already agreed. The Project will facilitate this confirmation to the best of its ability.
4.6

Conclusion
The acquisition of land for the Project has been complex, taking place within a traditional environment
that is moving, through interaction with third parties, toward a more formalized legal system.
Reconciling the demands of a major international investment with the special characteristics of
the adat system has required persistence and sensitivity. The Project has adhered to applicable
Indonesian law and policy while at the same time seeking to uphold the evolving and unclear
requirements of the adat system.
In the period since 1999, on-going consultation with the community has empowered the communities
to express their views, and allowed the Project to more fully comprehend the significance of these.
In recognition of the sensitivity of certain issues for the indigenous community, the Project has,
over time, refined and enhanced some of the commitments made in 1999. The Foundation is the
most recent attempt by the Project to meet social concerns, in a way that can bring sustainable
benefits to the communities.
In recognition of the dynamic environment in which it is operating, the Project has worked to
increase awareness through on-going and detailed consultation, and has assisted the communities
in documenting the agreements in relation to the land acquisition and the resettlement. In this
way, the Project has endeavoured to achieve legal certainty and provide a sound basis for future
development.

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5. The Resettlement-Affected Communities:

Environment, Demography, Productive
Activities and Sources and Levels of Income
5.1

Introduction
The goal of the Tangguh Project Resettlement Program is to restore and improve the livelihoods of
the resettlement-affected communities. In order to achieve this goal, a baseline socio-economic
survey of the communities provided Project management with key baseline data necessary for
designing, planning, monitoring and evaluating resettlement programs. Specifically the information
collected by these surveys has assisted the development of the Resettlement Program by:
Defining eligibility to receive resettlement-related benefits;
Identifying private and communal assets that will be forgone due to the

resettlement in order to plan their replacement;

Describing the demographic structure of the communities, thereby providing

the Project with a basis for planning resettlement and protecting the social
fabric of the resettled and host communities;
Describing the communities livelihood systems, thereby providing the Project

with a basis for planning income restoration programs;

Providing a socio-economic baseline against which Project impacts can be

measured after resettlement has taken place.

A URS contract team implemented the census/socio-economic survey. Structured interviews
of all families living in the resettlement-affected communities were conducted in Tanah Merah
in November 2001, and Saengga and Onar in March 2002. The formal survey was supplemented

 URS is an international consulting company that the Tangguh Project has regularly contracted to
implement various resettlement-related activities, including the socio-economic census described
above.

5 The Resettlement-Affected Communities

71

by numerous household case studies to verify the data. In addition, photographs of the families
enumerated in the survey, taken in front of their homes, were added to the final survey report.
In Tanah Merah, the survey was conducted in collaboration with the Tanah Merah Resettlement
Committee (TMRC) , which participated in regular reviews of the work and provided local partners
who accompanied the enumerators in data collection. In Saengga and Onar (where a committee
had yet to be formed), the team worked with and was accompanied by village leaders and residents.
The survey questionnaire used for Tanah Merah and Saengga and Onar is presented in Appendix
5.1.
5.2

The Biophysical Environment

The climate of the region is monsoonal. Between November and March the passage of the
northwest monsoon brings high intensity and high levels of rainfall to the area, with peak rainfall
occurring in January. The northwest monsoon is often associated with storms that make marine
transport hazardous, if not impossible. A dry season (coinciding with the southeast monsoon)
occurs between April and August. Daytime temperatures are uniformly high, although heavy rains
are often associated with a temporary reduction in temperatures. In addition the passage of the
southeast monsoon brings cold winds. Relative humidity is also high, reaching its peak during the
rainy season associated with the northwest monsoon.
The resettlement-affected villages occupy a range of ecosystems including shoreline mud flats,
mangroves, swamp forests, extensive nipa and sago palm stands, lowland Dipterocarp forest and
extensive Melaleuca savannahs. Each ecosystem has unique biophysical characteristics (i.e., soils,
hydrology, topography, vegetation, etc).
For the resettlement-affected communities access to the Bay defines the pattern of settlement,
with Tanah Merah and Onar being located on elevated land allowing direct access to the Bay while
Saengga is located on the banks of the Saengga River. Villages are located on areas previously
occupied by lowland Dipterocarp forest and, to a lesser extent, savannah. Over time these areas
have been cleared, cultivated and progressively expanded to allow for expansion of the villages
livelihood activities (primarily fruit tree and vegetable cultivation and collection of fuel wood).
The topography on which the villages (and thus the remaining Dipterocarp forests) are situated
is undulating with elevations of up to 30m above sea level. While various soil types exist they are
characterized by having sandy, shallow (<30cm) topsoils that tend toward a clay subsoil. Soils are
acid (pH 5-6.5) and infertile, being low in macronutrients and organic matter content.
Resource use intensity varies according to the ecosystem. For lowland Dipterocarp forests,
resource use is greatest in the immediate vicinity of the villages and declines with distance. Shifting
cultivation occurs in forest areas close to the villages while specific use of timber, gathering of
non-timber forest products, and hunting progressively become more important as distance from
the village increases. As indicated above other ecosystems have specific usesin particular the
sago and nipa palm swamps have specific uses for harvesting of sago and nipa palm leaves (for
thatching) while the shoreline environment provides a variety of marine products.

 The Tanah Merah Resettlement Committee (TMRC) is an elected body established to work as a
counterpart with the Project Resettlement Team in implementing the resettlement programs. The
TMRC is further described in Chapter 7.

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5.3

Socio-economic Profile of Resettlement-Affected Villages

5.3.1

Recent History of Sumuri Settlement Patterns

Periodic movement along the coastline of their tribal landholdings characterizes the recent history
of the Sumuri of Tanah Merah, Saengga and Onar. Before 1912, Sumuri occupied the area of the
current Tanah Merah village. In 1912, conflict with the Dutch led part of the population to move
to Saengga and Serito. The Masipa, Kamisopa, Mayera, Dokasi, Weripa, Sabandafa, Fossa clans
moved to Serito. When peace was re-established in 1913, the population did not resettle in Tanah
Merah. In 1918, an influenza epidemic led to further out-migration from Tanah Merah with relocation
to Soi, Watinesi, Manggosa, and Tanah Rata. People from the Ateta, Inanosa, Muerena, Siwana and
Bayuni clans moved to Kampung Soi (located adjacent to current Kampung Tofoi and later absorbed
in the Djayanti log milling operations) and joined the Dorisara clan who held hak ulayat rights over
the area. Kampung Soi joined Saengga in 1975. The Sodefa and the Fossa established Kampung
Watinesi (in the current Kampung Tofoi) and in 1960 joined Kampung Saengga. Kampung Tanah
Rata (located in present-day Onar) was established by the Sowai in 1920. Subsequently many of
the Sowai moved to Kampung Saengga. The Serito group returned to Tanah Merah and settled into
RKI ( Rukun Keluarga, the smallest government-recognized administrative unit within a village)
. The
Manggosa group
(Wayuri, Agofa, Siwana)
soon followed and settled in RKII, thus maintaining the
basis of their original segregation.
In 1975, the Indonesian government assigned village status to Kampung Sumuri (Saengga),
simultaneously recognizing Tanah Merah and Tofoi as hamlets of the village. In 1995, the
government village expansion program led to recognition of Tanah Merah as an independent village.
While government recognition of village status (and its consequent benefits) has promoted greater
population stability, employment-related and temporary seasonal movement of the population has
continued. This is evident in the move of large numbers of people from Saengga village to Tofoi
hamlet where the Djayanti prawn and logging subsidiaries sought to employ local labour. Similarly,
pendular seasonal migration is most evident in the Onar hamlet, whose population has reflected the
seasonal presence of Saengga fishermen coming to catch prawns. Even today, the establishment
of seasonal shelters along the coastline is common.

5.3.2

The Sumuri
The Sumuri tribe comprises 18 clans distributed in three villages (Saengga, Tanah Merah and
Tofoi) along the southern coast of Bintuni Bay. A limited number of clans tend to dominate specific
villages. The Masipa (15 families) and Kamisopa (11 families) clans and the Agofa (16 families) and
Wayuri (22 families) clans dominate the populations of RKI and RKII in Tanah Merah. The Simuna
(24 families), Ateta (19 families), Fossa (18 families), Sodefa (13 families) and Sowai (10 families)
dominate the population of Saengga.
It is noteworthy that the Sumuri clans do not derive from the same ancestral lineage. For example,
while the Sowai originate from Tanah Merah, the Wayuri originate from the east of the Bay and the
Simuna originate from the west, close to Fakfak. Nonetheless it remains that in recent times the
clans share a common history. This history and their language, customs and culture form the most
obvious basis of Sumuri identity. While there is no doubt that these remain strong, it must also be
recognized that young children increasingly use Indonesian (the language of education) and the
younger generations are increasingly less concerned with traditional custom and culture. A process
of integration and homogenization with a wider Papuan (if not Indonesian) society is well under
way.

5 The Resettlement-Affected Communities

73

More generally (and also more typically of Papuan societies), identity is strongly expressed in relation
to land, forest and marine resources and adat and hak ulayat (traditional customs and rights). Land
is an integral part of clan (and clan member) identity with linkages to the social, economic, cultural
and religious facets of life. Land holdings confer status, dignity and honor. Patrilineal clan-based
communal land tenure systems are typical with individual households securing user access rights
to land by permission of the eldest son. While important to recognize the cultural importance of
clan landholdings, it remains that the vast majority of the landholdings have limited use, existing
primarily as a passive resource through which clans define themselves. The majority of clans are
neither resident on, nor fully reliant on, their landholdings for their livelihoods. Hence clans in Tanah
Merah reside on and utilize Sowai lands, clans in Saengga reside on and utilize Simuna lands, and
those in Onar reside on and utilize Agofa lands.
Land utilization is based on usufructuary rights to cultivated plots and their products for the period of
cultivation, i.e., no land ownership is associated with the establishment and cultivation of gardens.
Hence in Tanah Merah households would seek permission from the land-owning clan to cultivate
gardens and harvest produce. No ownership rights would be established by such cultivation and
after the completion of the harvest, the land would revert to communal status and once again
would be available for cultivation by other households. The cultivation of perennial crops (e.g., fruit
trees) involves an extended period of usufructuary use during which the individual or household
maintain rights to cultivated crops and their products. However again no land ownership rights are
established by cultivation. Overall it is clear that the majority of households resident in Tanah Merah
maintain rights to access and/or usufructuary use of land and resources which do not belong to
their own clans.
Finally, it is noteworthy that the perception of Sumuri identity has found new life with Project
presence in the Bay and the associated targeting of assistance to the Sumuri.
5.3.3

Village Leadership and Administration

The progressive consolidation of the Sumuri population into government-recognized village units
has led to changes in leadership pattern and authority. Nominally, the Sumuri tribe has an overall
leader who assumes responsibility at the very highest level for Sumuri issues. In practice, however,
both the position and its recognized function is little utilized by the Sumuri themselves although the
government has recognized these positions to facilitate addressing adat and hak ulayat issues.
Clans with members distributed across villages recognize clan representatives in each of the
villages, a process that occasionally leads to internal dissent regarding identification and recognition
of the most senior clan representative. Further, in some circumstances the landholding clans on
which the Sumuri settlements are located are recognized (by other clans in the village) as holding
the power to make decisions affecting the village community and resources. However this power
is variably exercised.
Superimposed upon the clan leadership system are government-recognized village heads (and
various related administrators) who are elected by the community and who serve five-year terms
with the possibility of re-election. Village heads serve to link the village community with government
and to some extent serve to facilitate the delivery of government services (e.g., health, education)
and assistance (e.g., housing, water and sanitation, technical extension services). As might be
expected, the ability of an elected leader to fulfill his duties is variable. This is complicated by the
general perception that position confers authority and privilege rather than responsibility, and the
rather poorly developed capacity of the community to demand representative and accountable
government. Consequently the idiosyncrasy of leadership has the potential to significantly affect

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the development of any one village and in many circumstances, poor leaders are tolerated (and
ignored to the extent possible).
In the target communities, the male individual reigns supreme, while the traditional low status
of women persists  . The weakness of village-level leadership and community cohesion provides
significant room for individuals to express their individuality without consequence. For example, in
village meetings dissatisfied individuals can express their discontent with either process or outcome
by leaving meetings and thereby absolving themselves of responsibility. Similarly, this sometimes
allows physically strong, aggressive and violent individuals to dominate communities.
Government presence in the resettlement villages is minimal. Occasional visits by the sub-district
head occur, but technical extension visits (e.g., agriculture, fisheries, health) are uncommon.
Government services (i.e., education, health) are variably provided. For example, when the Project
started, government health care in the three target villages was limited to a clinic in Saengga and
this clinic closed soon after staff ceased working. Since that time, various private companies that
established clinics for their staff have also provided health services to the population of Saengga
and Tanah Merah. In education, religious institutions manage schools. Teacher-student ratios are
very low (and inadequate). Teachers salaries are low and consequently many teachers frequently
engage in private business, leaving their teaching obligations (and hence education of youth) behind.
This clearly is reflected in the low levels of education and literacy attained by the population.
5.3.4

Family and Household Structure

Traditionally Sumuri households comprise extended families based upon a core nuclear family.
Accordingly, it is common to find three generations residing under one roof, with individuals and
families working together to meet the households subsistence needs.
Table 5.1 presents household characteristics for the three resettlement-affected villages. At the
time of the census/survey, there were 89 houses in Tanah Merah Village, 67 in Saengga and 30 in
Onar. All homes were occupied in Saengga and Onar whereas three of the homes in Tanah Merah
were vacant. In Tanah Merah, Saengga and Onar the average family size was 4.65, 4.70 and 4.00
respectively. In all three communities, most households are single-family households. There were
a significant number of households comprising two or three families, i.e., eight to 12 people per
household.
Households are patriarchal with the head male serving as the representative and decision maker of
the household. Women play a very limited public role although this need not apply to the privacy of
the household.

 Section 5.3.5 discusses gender roles in the household.

5 The Resettlement-Affected Communities

75

Table 5.1

Household Characteristics in Resettlement-Affected Communities

Characteristic

Tanah Merah

Saengga

Onar

Number of houses

89

67

30

Number of inhabited houses

86

67

30

Total number of families

127

94

39

Average family size

4.65

4.70

4.00

53
25
8

47
16
5

22
7
1

Number families/household
one family
two families
three families

5.3.5

Gender
As described above Sumuri community and households are patriarchal and chauvinistic, assigning a
low status, supporting role to women. Women are disempowered across a broad range of activities
including:
Representation, planning and decision making in tribal and clan affairs;
Participation in village planning and decision making;
Control and management of household affairs;
Participation in education, and
Participation in wage employment and income generating activities.

The gender division of labour places a heavy burden on women. While men assume greater
responsibility for tasks requiring physical strength (e.g., clearing forest for agricultural gardens)
women endure the burden of household management (i.e., child bearing and rearing, food collection
and production, fuel wood collection, food preparation, hygiene, sanitation and washing). This
burden places significant pressure and responsibility on women, all the more where household
facilities (e.g., water and sanitation) and government services (e.g., health) are lacking.
While the labour division described above clearly indicates that women contribute substantially to
the household economy, men assume primary responsibility for generating and controlling income.
Hence men tend to engage in income-earning activities (e.g., wage employment) and in enterprises
involving higher and immediate/short-term cash flows (e.g., prawn collection and sale), leaving
behind their spouses to take care of household affairs.
Consultations with women have occurred through-out the resettlement process and across all
activities. These consultations are described in Chapters 7, 8, and 9. Resettlement-related gender
impacts and their mitigation are discussed in Section 10.3.6.
5.3.6

Vulnerable Groups
The Project is concerned with the identification of vulnerable groups (i.e., as distinct groups of
people who might suffer disproportionately from resettlement effects). Census data indicate that
three such groups exist, namely:
Single parents (especially mothers) who need to engage in economic livelihood

activities whilst caring for their children;

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 The elderly, who are too old to engage in economic livelihood activities and who

may or may not receive support from their children;

Special needs people (including disabled people and those debilitated by

disease) who do not actively participate in economic livelihood activities and are
to a large extent dependent on others for their continued existence.
While census data is indicative of the number of vulnerable people living in the communities,
for planning purposes the delayed implementation of resettlement required that specific data be
collected immediately prior to the physical relocation of the Tanah Merah population. To this effect
the data collected in December 2003 indicated the following:
1 disabled dependent;
3 adults affected by chronic disease (TB, intestinal problems);
13 elderly (defined as >60 years of age);
5 single mothers with children.

Separately and inclusive of the vulnerable people listed above, the Project identified the 11 poorest
families, poverty being associated with status as single parent or the elderly not participating in
productive activities and/or not receiving any support from children.
Ostensibly the government has a social department that could provide assistance to vulnerable
groups. However no instances of government identification and provision of support to vulnerable
groups in Tanah Merah have been reported. Furthermore no community-level support mechanisms
exist. Any assistance to these groups is provided through religious institutions (i.e., church and
mosque) or through close relatives. More often than not, close relatives reside with the vulnerable
group and operate on the basis of an extended family. (Special measures to assist and support
vulnerable households before, during and after the relocation are described in Section 10.3.7).
5.3.7

The Village Community

In November 2001, Tanah Merah had a total population of 591. The populations of Saengga village
and the Onar hamlet were 407 and 156, respectively.
The population of Tanah Merah has experienced significant expansion in the past five years. In
1999, there were 74 households with a total population of 367. In 2000 there were 110 households
and a total population of 511. In 2001 there were 127 families with 591 people. By December 2003
there were 144 families with 654 people. The advent of the Tangguh Project and, in particular,
the land compensation and village resettlement package established in the 1999 Agreements, has
encouraged many Tanah Merah and Sumuri people who were not residing in the village to return
to the area. It is likely that similar trends will occur in Saengga and Onar once resettlement-related
housing and development programs begin.
In all three villages, the population is young. The average age ranges from 19 in Saengga to almost
21 in Tanah Merah. This is consistent with the fact that the life expectancy in Papua is 47 years (see
results of the Health Baseline Survey, Section 5.7 at the end of this chapter).
Relations between households are complex, reflecting the linkages established through intermarriage between families and clans, inter-family rearing of children, etc. Such networking of
individuals, families and clans provides tremendous social benefits to the community, although it

5 The Resettlement-Affected Communities

77

also presents greater difficulties for individuals to maintain a distinction between private enterprise
and social obligations and for the community to regulate deviant behavior.
It is paradoxical that the strong social networks described above do not necessarily result in a
cohesive, well-articulated collection of households sharing common goals, i.e., a broad, deep sense
of community. Several factors may explain this including the lack of common genealogical roots for
the clans comprising the Sumuri tribe, the history of migration, and the ambivalent expression of
leadership as described above. In the case of Tanah Merah in particular, the continued separation
of the Serito and Manggosa groups (and indeed their further separation upon resettlement) is
indicative of a long-term, residual division between the groups. Furthermore, less than half (44.6%)
of the current population was born in Tanah Merah. Of the people who have moved to Tanah Merah,
the majority came from other areas of Papua.
In-migration into the villages has and continues to dilute and change the Sumuri profile of the
villages. Although the majority of the residents of Tanah Merah (79%) and Saengga (73%) are
members of the Sumuri tribe, the presence of migrants is most notable in Tanah Merah, this being
particularly true for RKI. In Onar, only half of the population belongs to the Sumuri tribe. The migrant
population derives from various locations throughout Papua and, to a lesser extent, Indonesia.
The migrant population is generally better educated, more industrious, and more enterprising.
Accordingly, they have greater capacity to take advantage of economic opportunities as and when they
present themselves. Both the dilution of the Sumuri content of the villages as well as the migrants
economic prowess have already provoked occasional expressions of jealousy and resentment from
the Sumuri. Together, the increasing sense of Sumuri identity, Sumuri feelings of entitlement,
and the capacity of migrant families to progress more rapidly provide ingredients for a potentially
explosive and undesirable ethnic-based division in the future. Further in-migration (especially during
the construction of the plant) poses a real threat to the integrity of the communities. Resettlement
risks, including spontaneous in-migration are further discussed in Section 6.4. Measures to address
risks arising from in-migration are discussed in Section 10.4.3
Diversity in religion is expressed in all villages with Protestant, Catholic and Muslim faiths being
practiced by the populations. Sixty per cent of Tanah Merah residents are Protestant with the
remainder of the village almost evenly split between Catholic (19%) and Muslim (21%) faiths.
Saengga is predominantly Catholic (91%) with Protestants making up 8% of the population and
Muslims the remaining 1%. In Onar, the population is balanced between Catholics (50%) and
Muslims (42%), with Protestants making up the remaining 8%.
5.3.8

Village Housing, Facilities and Services

The quality of housing, village facilities and services are poor. The typical house is raised off the
ground, has flooring and walls constructed of rough-hewn wooden planks, and nipa thatch or zinc
roofing. The house comprises a living room (often used for sleeping quarters at night), one to two
bedrooms and an open or detached kitchen often serving also as a dining room. Average house area
is 56.8m2, 58.2m2 and 47.4m2 for Tanah Merah, Saengga and Onar respectively. Households do not
have reticulated water systems. Hence, household members tend to bathe at the wells or in the
river. Drinking water comes from nearby wells or springs. Half the households in Tanah Merah have
toilets, with this figure reduced for Saengga and Onar.
Table 5.2 presents details of village facilities and services. Saengga and Tanah Merah have the
most facilities and services while conditions in Onar reflect its status as an isolated, undeveloped
hamlet. Facilities tend to include a primary school, a community hall and places of worship. Services

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are limited. Village-owned and private generators provide electricity (at night, subject to household
contributions for purchase of fuel) while water and sanitation conditions are basic. Education is
provided through NGOs affiliated with Catholic or Protestant churches. Primary schools in Tanah
Merah and Saengga have poorly paid teachers, low teacher numbers and low teacher-student
ratios. Health services are basicSaengga has a government-sponsored clinic. However, the
population of Tanah Merah and Saengga tend to make use of the clinics provided by Project-affiliated
contractors.
Table 5.2
Facilities
Village
and
Services

in Resettlement-Affected
Villages

Community
Infrastructure

Tanah Merah

Saengga

Onar

Village Governance

Meeting hall
TMRC building

Meeting hall
Village office

None

Places of Worship

Protestant church (1x)

Catholic church (1x)
Mosque (1x)

Catholic church (1x)

Catholic church (1x)

Mosque (1x)

Public Recreation

Volleyball/Soccer field

Volleyball/Soccer field

Volleyball field

Education

Elementary school (1x)

Elementary School (1x)

None

Public Health Facilities

None

Community Health Center

Support Branch (1x)

None

Water Sources

Well (1x)
Spring (1x)
Water Tap (6x)

Wells (10 drinking wells,

1 washing well)
Rain water collectors (6x)

Wells (6x)

Electricity

Generator (3x)

Generator (1x)

Generator (1x)

Access to Bay

Public Beach

Dock (1x) on the river

Jetty (1x, damaged)

Cemeteries

Christian Cemetery
Muslim Cemetery

One Cemetery

None

Road Systems

One dirt road circling the playing Two dirt roads which fork
field in RKI and one dirt road
together
running straight up RKII

5.4

One dirt path system

around hamlet

Livelihood Systems
Households in the resettlement-affected communities
operate opportunistic diversified livelihood
strategies
. These strategies have traditionally been reliant on access to and usufructuary use of
natural resources (i.e., agriculture and forest resource use and fisheries), but increasingly involve
wage employment.
As such, to a greater or lesser extent, all households participate in activities in
the agriculture, fisheries and wage employment sectors and no useful dis-aggregation of households
by sector is possible.
In addition, individuals also possess various skills by which they are able to
secure income.
The census/socio-economic survey collected detailed information on the main livelihood activities
in the three resettlement-affected communities. These activities are described in the following
sections.

5.4.1

Agriculture and Forest Resource Use

5.4.1.1 History
Until recent times, Tanah Merah households operated a subsistence-based livelihood system based
upon the harvesting of sago (the primary source of carbohydrates), tuber crop production from

5 The Resettlement-Affected Communities

79

shifting cultivation of forest plots, the collection of forest products, and fishing. Sago was harvested
from naturally occurring stands at the mouth of the Manggosa River. Villagers describe harvesting
as a relatively labour-intensive process indicating that a months supply of sago would require up to
one week of work. During harvesting, family members resided in Manggosa and thus were absent
from the village. Cultivation of forest plots would allow production of carbohydrates (cassava and
banana) and a range of field and annual vegetable crops. Such cultivation also allowed households to
utilize the surrounding (secondary) forests for a range of timber and non-timber products. Fisheries
were a non-commercial activity with catches generally used to supplement the daily diet.
While agriculture and forest resource use continue to be a significant part of rural livelihoods, over
the past 20 years the traditional agricultural system has undergone substantial change. At least three
forces are responsible for these changes: (a) wage employment outside of the village; (b) reduction
in agricultural activities following Project compensation for cultivated plants; (c) the adoption
of prawning/fishing activities at the village level. These forces are described below. The (male)
labour demands of both (a) and (c) above have reduced household ability to partake in agriculture
(specifically in sago collection and cultivation of forest gardens) while simultaneously providing a
source of income that allows households to substitute sago staples with purchased rice. This trend
is confirmed by YR2001 census data on household consumption patterns and expenditure that
indicate that most households purchase their staple food, i.e., rice.
Large commercial companies concerned with fishing, logging and transmigration have been
operational in the area since the 1980s. The male labour force in Tanah Merah has participated in
the employment opportunities provided by these companies. Examples include prawn processing
in WIMRO and sawmill operations with Djayanti in Tofoi, etc.
Following completion of agreements pertaining to the acquisition of land for the development of the
Tangguh LNG plant, ARCO and the community agreed upon a process to count and compensate
for field crops and cultivated fruit trees. Agreements formalizing compensation payments also
stipulated that no further compensation for crops cultivated subsequent to the agreement would
be provided. On the basis of this stipulation Tanah Merah households ceased cultivating long-term
crops (i.e., fruit trees) although short-term field crops continued to be cultivated. As a consequence,
households that elected to continue cultivating forest plots generally tended to establish smaller
gardens.
In 1999 and 2000, an outside commercial fishing/prawning operation, PT Bina Usaha (subsequently
bankrupt and no longer operational), developed the capacity of Tanah Merah and Saengga in fishing
and prawning. It was both readily and widely adopted as an additional livelihood activity, capable of
generating both rapid and significant cash incomes. At the time of the baseline survey, fishing and
prawning provided almost 33% of Tanah Merah communitys total stated income and 103 families
(81%) reported that they derive income from fishing/prawning.
5.4.1.2 Agriculture Status in Resettlement-Affected Communities
(a) Accessing Agricultural Lands
House garden cultivation has a degree of permanence. While many house gardens are within house
plots, many are within the immediate vicinity of the village. While continuous cultivation conveys
a sense of ownership, in principal cultivation of these plots is through usufructuary use rights that
extend only for the period of cultivation.
Similarly, shifting cultivation of forest plots involves households assuming use rights to the plot
during cultivation, after which the plot reverts to lands held in common by the clan. Most households

80

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

plant fruit trees (mango, rambutan, jackfruit, breadfruit, etc) and perennial cash crops on one or two
plots, thereby securing use rights for extended periods of time. (Cash compensation for productive
plants (i.e., field crops and fruit trees) is discussed in Section 4.4.2.8. Restoration of agriculturalbased livelihoods has also led to the distribution of fruit tree seedlings (many grafted improved
varieties that bear fruit in the first 1-2 years after cultivation).
(b) Cultivation of Forest Plots
Forest plots are cultivated under a shifting cultivation system. Suitable plots are identified based
on the forest re-growth and soil fertility indicators (e.g., soil color). Once a suitable plot is identified
and permission obtained for cultivation, the plot is cleared in the dry season before the arrival of
the northwest monsoon (i.e., June to August). Men cut the underbrush with a machete and fell the
larger trees with an axe. After drying, the dry biomass is burned, leaving a cleared field ready for
cultivation.
Forest plots are used to cultivate perennial tuber crops, a range of annual vegetable and field crops,
perennial fruit trees and cash crops. Tuber crops (particularly cassava but to a lesser extent, taro,
sweet potato and yams) dominate the garden area and are harvested in the first and second year
following garden establishment. Similarly, pineapple, papaya and bananas are planted in the first
year and only harvested in subsequent years once they reach maturity. Annual crops (e.g., spinach,
kangkung, pumpkin, maize, peanuts, long beans, eggplant) can be cultivated two to three times
per year. Farmers indicate that after the third cultivation, soil fertility decreases to such an extent
that total crop production as well as crop yields are too low, leading to cultivation of a new plot.
Plots require between three to four years to recover pre-cultivation fertility levels, implying that
each household would have to have a minimum of four plots to sustainably operate a forest garden
system .
Where perennial cash crops are established, they represent opportunistic extensions of the
cultivation of a forest plot with planting of fruit or other estate crops during the active cultivation
period. While a small number of larger fruit tree and estate crop holdings do occur, it remains that
no commercial-scale intensive estate cropping occurs in any of the villages. Coconut and nutmeg
are the most commonly occurring estate crops in Tanah Merah. Coconut is the major perennial
cash crop (both in scale and revenue, although the latter is limited) and is concentrated around the
village. Nutmeg has been planted in extensive holdings some distance from the village. The now
over-mature stands previously contributed to household incomes through collection and sale of
flowers, flesh and nuts but its contribution has diminished, with both market access and low prices
being reported to be disincentives for continued harvesting and sale. Only sporadic examples of
other estate crops (e.g., coffee, cocoa) occur. Fruit trees are planted within the village as well as on
forest plots. The most common cultivated fruit trees are jackfruit, rambutan and mango.
Wild pigs and deer cause significant crop damage, the level of damage increasing with distance
from the village. Hence, both access and incidence of pests tend to limit plot cultivation to areas
reasonably close to the villages.
(c) Household Participation in Agriculture
Each community has structured its agriculture differently. Tanah Merah remains the most agriculturally
oriented community with many families cultivating house (or kitchen) and forest gardens. Saengga
has a lower level of agricultural activities, with families tending to focus on the cultivation of house

 Multiple families reside in one household and cultivate single plots together rather than
establishing individual plots on a family basis.

5 The Resettlement-Affected Communities

81

gardens within or nearer the hamlet. Onar residents do not engage in agricultural activities to any
great extent.
Determining family participation and the number and extent of forest gardens in Tanah Merah has
proven to be difficult because of the 1999 land agreement and the ensuing changes in agriculture .
To account for this, gardens abandoned or not replaced since implementation of the 1999 land
agreements, as well as the new gardens established in the past three years were surveyed  . The
survey by Calmarine, together with Tanah Merah residents, involved detailed measurements of
garden plots.
The survey identified 47 families cultivating agroforestry (i.e., fruit tree) gardens at the time of
the land agreement. Eleven of these families established new vegetable gardens following the
agreement. In addition, a further 13 families have established new vegetable gardens since 1999.
Taken together, these families cultivate 93 plots; 38 families cultivated only one plot and 22 families
have more than one plot, the total area occupied by all gardens being 13.58 ha. The average size of
a garden was 0.15 ha. As several families have more than one plot, the average plot size per family
was 0.23 ha. The smallest of these plots was 0.01 ha and the largest was 1.2 ha. The average area
of old agroforestry gardens (established prior to or at the time of the 1999 agreement) was 1.6 ha
while the average area for vegetable production plots established since that time was 0.07 ha.
As mentioned above, families in Saengga tend to cultivate house gardens. Fifty-one families report
cultivating house gardens. Forty-seven families estimated garden area. The estimate was that nine
ha was cultivated, with an average garden size of 0.2 ha. (Note that while a formal garden survey
was conducted in Tanah Merah, no measurement of gardens occurred in Saengga and Onar as the
Project has had no impact on their garden areas. Hence, estimates reflect farmer estimates of area
cultivated. Experience indicates that farmer ability to estimate area based on metric units is limited
and often grossly inaccurate.)
In Saengga, 25 families reported cultivating forest gardens. Nineteen of these families provided
estimates of farm area. The total area of forest gardens was estimated to be 16 ha, with an average
garden size of 0.85 ha. Finally, only six Onar families reported having a small garden, the three
largest being only 0.02 ha each.
(d) Agricultural Livelihoods
Almost all agriculture practiced in the resettlement-affected communities aims to meet subsistence
consumption needs. Limited sales occur within the village with excess produce sold to neighbors.
In Tanah Merah, the long-term presence of Calmarine in the village has led to some residents

 The 1999 resettlement agreements established the framework through which the Tanah
Merah community and the Project agreed to resettlement. At the same time as concluding the
land acquisition process with the affected communities, the Project also established a cut-off
date for compensation of cultivated plants and sago. Joint field surveys provided the basis for
compensation. Based upon the knowledge that the Project would provide no further compensation
for cultivated plants, and the assumption that relocation would occur soon after these agreements
were finalized, many households reduced the extent of cultivation of longer-term crops.
 Old gardens are agroforestry plots on which long-term perennial crops were planted. New plots
tend only to be vegetable gardens and are thus smaller in scale. The establishment of cut-off
dates for and payment of compensation encouraged a trend toward cultivation of seasonal crops
on smaller plots. Note that payment of compensation did not involve restriction of access to
established gardens.
 Calmarine is a survey company contracted by the Project. The company maintains an operational
base at Tanah Merah.

82

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

selling surplus vegetables to the Calmarine camp. Finally, trading of goods with traders coming from
WIMRO and Plasma (a transmigration area near Kampung Tofoi)) occurs with villagers buying fresh
vegetables from these traders.
5.4.1.3 Harvesting of Forest Produce
The Tanah Merah community gathers both timber and non-timber forest produce from the
surrounding forests. Timber products include lumber for construction, trees for construction of
canoes and longboats, fuel wood, etc. Non-timber products include construction materials such
as nipa palm leaves for making thatch roofs, food products (both from collecting from naturally
occurring plants as well as hunting animals [e.g., wallabies, wild pigs, etc.]), fertile soils from
terrestrial bird nests, etc. Much of the collection of vegetable produce is opportunistic, deriving
from forest trips to collect timber, nipa, etc.
5.4.2

Harvesting of Marine Produce

5.4.2.1 History
Traditional Sumuri livelihoods focused upon the collection, processing and production of sago
for subsistence. Small canoes provided access to naturally occurring sago stands at various river
mouths entering Bintuni Bay (e.g., Manggosa River on the Wayuri clan grounds in Tanah Merah).
Suitable sago palms would be identified, felled and split open, the pith subsequently removed
and processed to produce the sago flour. Besides sago collection, the canoes also were used for
fishingessentially a secondary activity that supplemented the household diet.
The transition from a subsistence to a market economy probably commenced in the 1980s, with
increasing wage employment opportunities within the Bay. Some of this employment was at
Djayantis PT Bintuni Minaraya (BMR, also known as WIMRO), a fishing company, with a fleet
of over 100 trawlers that has been active in the Bay since the late 1980s. Nonetheless, the major
transition from livelihoods based on sago harvesting to commercial prawning (prawns are the major
commercial product derived from fishing activities) happened much more recently. In 1999/2000
PT Bina Usaha (a government-sponsored fishing company) provided villagers with equipment (nets,
cool boxes) to begin prawning and a market to sell their harvest. PT Bina Usaha continued to function
as a purchasing agent until June 2001 after which BMR assumed the role (using an extension
of the Community Fishing CooperativeKoperasi Perikanan Masyarakat or kopermas). The key
point is that over a two-year period, villagers acquired the capacity (i.e., techniques, technology) to
participate in commercial extraction of marine resources and as a result changed the composition of
their livelihood strategy. Today, they identify primarily as fishermen (i.e., artisanal prawn harvesters)
and readily acknowledge that other livelihood activities (sago collection, gardening) have assumed
a secondary role.
5.4.2.2 Fishing Status in Resettlement-Affected Communities
(a) Fishing Grounds
The hak ulayat of the Sumuri specify that each clan has the access and usage rights to the area
directly in front of their lands. However, in practice, the use of marine resources is generally
(although not strictly) defined through the rights of the village. Accordingly, all residents within

5 The Resettlement-Affected Communities

83

the village have equal rights to access and utilize marine resources coming under the jurisdiction
of the clans within the village. Based on access and intensity of utilization, the fishing grounds of
Tanah Merah, Saengga and Onar represent several linked fisheries. Tanah Merah fishing grounds
are areas belonging to the nine clans in the village; Saengga households harvest the fishing grounds
under the customary entitlements of the Simuna clan; Onar households harvest the fishing grounds
proximal to Onar village, all of which are customarily under the Agofa clan.
It is important to note that such access and utilization is not without cost. At the point of sale, traders
note the fishing grounds (and clan rights there over) from which each fisher has harvested his
produce and at various intervals throughout the year, clan use of the various clans fishing grounds is
tallied, and where necessary, appropriate payments are made to the heads of clans to compensate
for use. This system allows fishermen to harvest marine resources from grounds belonging to
other clans. For example, Wayuri clansmen residing in Onar can thus fish in Agofa territory, or
Sowai fishermen residing in Saengga can fish in Simuna territory, paying for use rights. Implicitly,
these payments reinforce the recognition by others of specific clan entitlements on specific marine
areas.
The Sumuri do not permit commercial utilization of the fishing grounds. Nonetheless, in Tanah
Merah BMR gained access and use rights for which they paid Rp600,000 per four-month period
to each clan (this being paid tri-annually). (The Project does not impact the majority of the Sumuri
fishing grounds and thus does not impact upon most clans BMR-derived income streams. Only
in the case of the three land-selling clans (i.e., Simuna, Sowai and Wayuri) would the YR2008
imposition of safety exclusion zones potentially adversely affect such income streams. In any event,
in 2005 BMR ceased operations in response to increased fuel prices. Compensation for the three
land-selling clans loss of ownership of fishing grounds (and hence loss of potential income streams)
was provided by the Projects Foundation. Resettlers loss of access to their fishing grounds has
been addressed by livelihood restoration activities focusing on the facilitation of access to other
fishing grounds.)
Finally women and children engage in nearshore collection of shellfish from the mud flats in front of
Tanah Merah and utilize harvests to meet subsistence needs.
(b) Fishing Techniques and Technologies
Men, women and children participate in prawn harvesting although fishing is primarily a male domain
and responsibility. Table 5.3 describes household boat ownership in resettlement-affected villages.
The majority of households use a small outrigger canoe (usually with one or two pontoons, paddles
and sail) to access the fishing grounds (500m to 1,000m from shore) and subsequently move over
these grounds with the aid of the incoming/outgoing tides. Hence, they may drift eastward on an
incoming tide and return on an outgoing tide or drift westward on an outgoing tide and return on an
incoming tide. In this way, it is estimated that fishermen travel 2 to 3 km on the tide. In Tanah Merah,
tides thus allow a fisherman to reach the Saengga River in the west and the Manggosa River in the
east. Increasing numbers of fishermen are turning to motors (ketinting) as a means of propulsion, a
technology that has allowed them to access all of a villages fishing grounds. However, only a small
number of fishermen own motors. Besides the purchase and operational cost of these motors,
the current boat design limits the efficiency of using motors as a means of propulsion (i.e., safety,
range) and the ability to accommodate the greater catch made possible with the technology.
Motors (ketinting) are available in local towns. Currently most common are 3.5 to 10 HP gasoline
motors, although motors are available in various sizes powered by gasoline or diesel. The cost of
gasoline is Rp4,500/liter while diesel is Rp2,500/liter. It was estimated that a fishing trip would

84

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

require approximately 3 to 4 liters of fuel, implying a cost of Rp18,000 for gasoline or Rp10,000 for
diesel. Fuel is available within the villages. Finally, fishermen can choose between ketinting and the
more expensive outboard motors. The former is preferred because of lower purchase and operating
costs and ease of maintenance.
Prawns are caught with a 2 inch, 50 meter trammel (gill) net which is cast perpendicular to the
current of the tide. Only minimal repairs are made to nets, the average life span being three months
before they are discarded and replaced with a new net purchased in a nearby town (e.g., Sorong,
Fakfak, Babo, Kokas, Tofoi) at a cost of Rp100,000-150,000. Fish also caught with gill nets and lines
are deemed a by-product of prawn harvesting (this however also being related to the lack of export
markets for fish).

Table 5.3

Household Ownership of Fishing Boats in Resettlement-Affected Villages

Tanah Merah

Onar

Saengga

Type of Boat

No. families
owning
equipment

No. Owned

No. families
owning
equipment

No. Owned

No. families
owning
equipment

No. Owned

Outrigger canoe

92

138

19

25

16

18

Ketinting

10

11

14

Long boat

10

14

Outboard motor

Seman

15

15

62

84

Speed boat

Jaring giop

(c) Production
While prawn harvesting is conducted year round, several factors affect the potential catch. First, there
is a marked prawning season (as defined by fishing effort). The northwest monsoon (DecemberMarch) brings high winds and heavy seas and fishing effort correspondingly drops. In contrast, the
southeast monsoon (April-November) is associated with calm waters and fishing effort is highest
during this period. Second, the lunar cycle and tides affects abundance of shrimps, with greater
harvests during the crescent and full moon. Finally, on a daily basis the relations between fishing
conditions, tides and effort define the catch. Fishermen indicate that they usually spend a half-day
(six to eight hours) prawning and are able to catch 2 to 6 kg of prawns. An average of 15 days are
spent prawning every month.
Table 5.4 describes YR2000-2001 monthly activity and harvest data in the resettlement-affected
villages. For Tanah Merah the data shows that prawn harvests peaked in June and September
through November while only a very small catch was reported for December. No harvesting was
reported February to March.
(d) Processing and Marketing
Limited post-harvest processing of prawns takes place, with villagers removing heads before
weighing and sale. Currently marketing channels are limited with middlemen either selling to the
BMR operations in Tofoi or to other commercial operations in Fakfak. The Van Zorge Report  indicates

 Van Zorge, Heffernan & Associates were commissioned to conduct the Berau/Bintuni Bay Fishery
Report (April 2001).

5 The Resettlement-Affected Communities

85

the presence of other commercial companies in Sorong. As mentioned above, the lack of export
markets for fish has limited the development of fishing operations (although commercial species
exist in the Bay). The URS Fisheries Report (2001)  indicates that a lack of training, techniques,
equipment, transportation/distribution and markets limit the development of a commercially viable
form of fish processing.
(e) Livelihoods
The 2001 census of Tanah Merah, Saengga and Onar confirm that prawning has become a major
livelihood sustaining activity and the dominant natural-resource-derived income source. The Van
Zorge Report suggests that it is unlikely that any other economic activity can currently match the
earnings potential of shrimping.
Table 5.4

Prawn Harvesting by Resettlement-Affected Villages (Nov 2000

Oct 2001)
Labour Inputs and Productivity1

Tanah Merah
Month

catch
(kg)

# trips

kg per
trip

November 2000

617

224

2.8

December 2000

13

1.4

430

163

2.6

January 2001
February 2001
March 2001

Saengga
catch
(kg)

# trips

Onar
kg per
trip

catch
(kg)

# trips

kg per
trip

Data not collected

this period

Data not collected

this period

April 2001

948

428

2.2

May 2001

727

434

1.7

June 2001

1,870

606

3.1

July 2001

712

260

2.7

662

145

4.6

no data

no data

no data

August 2001

701

230

3.0

682

279

2.4

1,739

616

2.8

September 2001

2,065

577

3.6

1,198

335

3.6

1,232

613

2.0

October 2001

2,756

729

3.8

1,375

520

2.6

1,733

771

2.2

2,008

515

3.9

2,623

779

3.4

281

2.4

1,781

556

3.2

November 2001
December 2001

Data not collected

this period

670

Sources:Tanah Merah data from local shrimp collectors in Tanah Merah, Nov. 2000Oct 2001.
Saengga and Onar data from local shrimp collectors in Saengga and Onar.
1 The data collection process has been somewhat ad hoc, with data collection in Tanah Merah,
Saengga and Onar being implemented by different parties at different times. In Saengga and Onar
no data collection was scheduled to occur between November 2000 and June 2001 and the gap in
the data reflects the lack of data collection activities.

5.4.2.3 Gathering of Marine Produce

Tanah Merah households collects a variety of marine produce from the near-shore environment. The
main activitythe collection of shellfish from mudflatscontributes to household subsistence.

 Commissioned as part of preparation of this LARAP

86

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

5.4.3

Employment
Until the arrival of the Tangguh Project, opportunities for wage employment in the Bay were limited.
Nonetheless household heads from the three villages have been variably employed in commercial
enterprises such as logging, trawling and establishment of palm oil plantations. From the start
of Project exploration activities, both temporary and permanent wage employment opportunities
have progressively increased. Examples include the cutting of transect lines during exploration;
construction of a base camp near Saengga village; camp housekeeping, catering, and maintenance;
support of Project marine and air transport systems, etc. By the time the 2001/2002 censi were
implemented almost a third of the working age male population in Tanah Merah and Saengga was
engaged in wage employment with the Project or its contractors.

5.4.4

Skills
Table 5.5 shows the breakdown of skills among the adult working age population of the resettlementaffected communities. Among men, the most common skills are carpentry, boat building, house
construction and mechanics. For women, skills are concentrated in weaving, sewing and cooking.
A large fraction of the adult population did not identify specific skill sets, tending to describe
themselves as generalists working in agriculture, fisheries and other livelihood activities.

Table 5.5

Vocational Skills of Working Age Population (18

55 yrs) in Resettlement-Affected
Communities1, based on data collected 20012002

Tanah Merah

Saengga

Onar

Total working-age popn

277

182

72

Total reporting skills

122

44.0

108

59.0

24

33.0

Womens Skills Sets

65

47

Cooking

10.8

17.0

62.5

Weaving

35

53.8

39

83.0

37.5

Sewing

6.2

13

27.7

Mens Skill Sets

57

61

16

Carpentry

19

33.3

28

45.9

18.8

Boat building

14.0

21

34.4

26.0

House construction

10

17.5

3.3

6.3

Mechanic

Characteristic

1 The survey instrument asked respondents to list skills for each household member. On the basis
of this list, the skill sets were categorized as mens and womens skill sets. While some specific
vocational skills are identified (e.g., mechanic) the data tends to reflect the traditional division of
labour (and associated skills) occurring within the household.

5.5

Baseline Income and Employment Levels of the Resettlement-Affected

Communities
The socio-economic censi of the resettlement-affected villagers collected household income (both
cash and in-kind) data. Figure 5.1 presents a breakdown of village income by source. Tanah Merah
and Saengga households operate diversified economies with multiple sources of income. In both
villages, wage employment (primarily associated with the Project and its contractors), prawn
harvesting and sales, and trade are the most important sources of household income. It is clear that

5 The Resettlement-Affected Communities

87

by 2001/2002 the resettlement communities economic structure and composition of household

income were moving from a subsistence economy typical of relatively isolated communities to a
more cash-based economy.
Trade comprises a significant proportion of village income (although it is felt that trade-derived
incomes have been over-estimated). Irrespective, trade-derived income is concentrated, with
only a limited number of traders in either village. Tanah Merah maintains a stronger agricultural
base. Finally, the greater relative importance of fisheries-related incomes in Onar derives from low
participation rates in wage employment attributable to the geographical isolation of Onar.
Figure 5.1

Distribution of Income in Resettlement-Affected Villages by Sector1

!'2)#

Tanah Merah



/4(%2



42!$%



7!'%


&)3().'



Saengga

/4(%2



!'2)#



42!$%

&)3().'





7!'%



Onar

/4(%2



42!$%

!'2)#





7!'%



&)3().'



1 For a small number of households, incomes derived from trade represent a significant source of
income. Trade includes operation of kiosks, operating as a middle man collecting prawns from
village fishermen for onward sale, etc.

88

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Figures 5.2 and 5.3 provide a breakdown of income sources for the agriculture and fisheries sectors
in the resettlement-affected villages. The agriculture sector is dominated by the harvest and sale
of tree crops, most notably coconut. (Note: since the survey the relative importance of tree crops
has declined significantly). Garden crops contribute less than 2% to village-level agricultural sector
income. The fisheries sector is dominated by the harvest and sale of prawns. At the time of the
survey, a limited number of villagers were also catching sharks and selling shark fins, but this activity
has since declined in importance.
Figure 5.2

Distribution of Village Agricultural Income by Activity, Tanah Merah and Saengga Village

100%

Percent of Total Agricultural Income

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Tanah Merah

Saengga

AgroForestry

Gardens

Animal Husbandry

Figure 5.3

Distribution of Village Fishing Income by Activity in Resettlement-Affected Villages


0ERCENTOF&ISHERIES)NCOMEBY!CTIVITY











4ANAH-ERAH

3AENGGA
0RAWNS

/NAR

&ISH

5 The Resettlement-Affected Communities

89

Figure 5.4 presents village income by quintile for the three resettlementaffected villages. The
highest income quintile secures the vast majority of village income, this figure declining rapidly, with
the lowest quintiles securing less than 5% of village income. Households in the highest income
quintile tend to have multiple sources of income, e.g., employment and trade. Trade (prawn marketing
middleman, kiosks, etc.) represents a substantial source of income for selected households.
Figure 5.4

Distribution of Total Household Income by Quintile in Resettlement-Affected Villages

Tanah Merah





ST

ND
RD





TH
TH



Saengga




ST



ND

TH

RD



TH



Onar


ST




ND

TH
RD 

TH



90

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Figure 5.5 provides graphical illustration of the level and distribution of household income for the
three resettlement-affected villages. Worthy of note are the slowly rising trend line for household
annual incomes and the marked increase for the highest quintile where trade-derived incomes
come into play.
Figure 5.5

Distribution of Household Income Levels in Resettlement-Affected Villages
Tanah Merah

Annual Household Income (US$)

14,000

12,000

10,000

8,000

6,000

4,000

85

81

77

73

69

65

61

57

53

49

45

37

41

33

29

25

17

21

13

2,000

Household

Saengga

Annual Household Income (US$)

14000

12000

10000

8000

6000

4000

65

61

57

53

49

45

41

37

33

29

25

21

17

13

2000

Household

Onar
14000

Annual Household Income (US$)

12000

10000

8000

6000

4000

2000

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Household

5 The Resettlement-Affected Communities

91

Figure 5.6 illustrates composition of average monthly household income for each quintile for the
resettlement-affected villages. The relative importance of income sources changes with income
levels. In Tanah Merah village, the poorest families (i.e., the lowest quintile) generally comprise
newly established nuclear families reliant on incomes derived from the harvest and sale of prawns.
Similarly, the second quintile is also heavily dependent on fisheries although agriculture and wages
are new components. Thereafter, wage employment is the main contributor to increased income
levels, but participation therein is associated with a reduction in participation and relative importance
of agriculture and shrimp incomes, although these latter two sources remain significant. Finally,
the wealthiest families in the village focus on trade and other sources of income. While prawning
contributes to these households incomes, (because they tend to serve as middle men in the
prawning business) there is virtually no participation in wage employment.
Figures 5.7 and 5.8 provide the average monthly household income by quintile and average monthly
per capita income by quintile for the resettlement-affected villages. In all villages average household
income levels are low. The quintile analysis demonstrates that incomes are not distributed evenly
across the village. For example, in Tanah Merah village, lowest income households have an average
monthly income of US$69; the households in the middle quintile report an average monthly income
of US$139 (over 200% of the lower income group), while the households in the highest 20%
reported average monthly incomes of US$262.80 (189% of the middle group). Hence, the highest
quintile secures incomes that are more than 380 per cent greater than the lowest quintile. A similar
pattern occurs in Saengga and Onar, although this is most marked for Onar where the highest
quintile has income seven times greater than the lowest quintile reflecting their participation as
middlemen in the prawning trade.
Onar reports the highest average per capita monthly income of US$70.40. Saengga reports an
average household income level of US$40.90 while the lowest income levels are recorded in Tanah
Merah (i.e., US$27.90). This translates to an average daily per capita income of between US$1.00
to $2.00 although this is US$0.30 to $0.50 for the lowest quintile.
Note that the baseline income figures do not reflect the pre-Project situation. As described above,
wage employment (especially in Tanah Merah and Saengga where 36 and 32 male household
members reported being employed) already was a major livelihood activity in the villages at the
time of the survey.

92

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Figure 5.6Sector Average Household Income by Quintile in Resetllement-Affected Villages

Tanah Merah

!VERAGE!NNUAL(OUSEHOLD)NCOME53



!GRIC



&ISH
7AGE



4RADE


/THER





ST

ND

RD

TH

TH

1UINTILE

Saengga

!VERAGE!NNUAL(OUSEHOLD)NCOME53



!GRIC



&ISH
7AGE



4RADE


/THER





ST

ND

RD

TH

TH

1UINTILE

Onar



!GRIC

!VERAGE!NNUAL(OUSEHOLD)NCOME53



!GRIC
&ISH
&ISH
7AGE



7AGE
4RADE


4RADE
/THER
/THER









ST

ND

RD

TH

TH

1UINTILE

5 The Resettlement-Affected Communities

93

Figure 5.7Inter-Village Comparison of Average Household Income by Quintile for

Tanah Merah, Saengga and Onar Villages1

!VERAGE!NNUAL(OUSEHOLD)NCOME53



4ANAH-ERAH



3AENGGA


/NAR







ST

ND

RD

TH

TH

/VERALL

1UINTILE

Figure 5.8Inter-Village Comparison of Average Per Capita Household Income by Quintile

for Tanah Merah, Saengga and Onar1

!VERAGE0ER#APITA(OUSEHOLD)NCOME53





4ANAH-ERAH
3AENGGA



/NAR








ST

ND

RD

TH

TH

/VERALL

1UINTILE

Notes: US$:IDR exchange rate: US$1=IDR10,000

94

The figure provides income levels adjusted by reported expenditures. Such adjustment is standard
and accepted practice since in some cases reported expenses are higher than reported income
levels. Hence, it is prudent and good practice to calculate real incomes according to expenses, on
a case-by-case basis. The adjusted income is the result of this calculation. (On the other hand,
the census indicates that Tanah Merah residents, in all likelihood, reported their income levels
more accurately, and thus, these income levels can be used to estimate household wealth in Tanah
Merah and no adjustment is necessary.)

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 5.6 shows the employment structure for the adult population of the resettlement-affected
communities. Men were primarily employed in wage labour and fishing, the former being indicative
of Project impact. Women identified the following forms of employment housewife, fishing,
agriculture, food and trade. Only in Tanah Merah were there substantial numbers of people who
identified themselves as farmers.
Table 5.6

Employment Structure of Adult Population (18-55 years old) of
Resettlement-Affected Communities1
Characteristic

Tanah Merah

Saengga

Onar

Total working-age population

277

182

72

Total reporting employment

210

144

54

Womens Employment

65

50

17

Housewife

10

28

Fishing

19

14

Agriculture

Food

12

Trade

Other

13

Mens Employment

145

94

37

Wage labour

36

31

Fishing

82

59

31

Agriculture and hunting

21

Trade

Other

1 In all resettlement-affected villages, approximately 20% of the adult population (i.e., 67 people
in Tanah Merah, 40 people in Saengga and 18 people in Onar) did not identify any specific
employment

5.6

Baseline Education in the Resettlement Villages

Figure 5.8 presents the educational attainment of the adult population of the three resettlementaffected villages. Few residents have had no schooling whatsoever. Approximately 50% of the
residents have attended primary school although most failed to complete primary school education.
Participation rates in junior and senior high school are lower with completion rates being lower still.
Participation rates in higher education (i.e., post-high school) are limited. Generally, the data reflect
both the limited availability and quality of educational services provided by government.
Figure 5.9 shows current participation (population aged between 6-18 years) rates in education. In
Tanah Merah and Saengga, between 80 and 90% of the children between 6 to 18 years old attend
school. In Onar only 30% of this age group is in school, reflecting the fact that Onar does not have
a school and both access to and willingness to travel to schools outside the community is limited.

5 The Resettlement-Affected Communities

95

Figure 5.9Educational Attainment of Adult Population (18 years of age) of

Resettlement-Affected Communities

% of Population Over 18

40.0%

Tanah Merah
Saengga
Onar

35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%

oo
l
Sc
h
ng

hi
ac

ch
Te

ed

Te

ni

ca

ni

ve

lS
ch

oo
l

rs
ity

ol
Sc
h
ig

H
or
ni
Se

ni
Se
e

et

m
C

om

pl

So

ed
et
pl
om
C

ho

ol
ho
Sc
h
ig

H
or

or
ni
Ju

ni
Ju
e
m
So

oo
l
Sc
h
h
ig

ig
H
or

ed
et
pl
om
C

Sc
ho
h

em
El

em
El
e

So
m

ol

ry
en

ta
en

ol
ho
Sc
o
N

ta

ry

in
g

0.0%

Level of Schooling

Figure 5.10

Participation Rates in Education for Children (aged 6-18 yrs) for
Resettlement-Affected Villages

Percentage of 6 to 18 Year Olds

100.0%
90.0%

Tanah Merah

80.0%

Saengga

70.0%

Onar

60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

No schooling yet

Student

Out of School

School Status

5.7

Baseline Health in the Resettlement Villages

Baseline health data on the resettlement villages of Tanah Merah, Saengga and Onar was derived
from several sources, including: (a) a Baseline Health Assessment conducted by International
SOS in April 2000, and (b) two malaria surveys implemented in 2003 by an international malaria
consultant.

96

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

The objectives of the Baseline Health Assessment were to identify and assess the current
environmental and infectious health hazards and health risks facing the local communities and
developmental work force10. The assessment involved four surveys:
30 cluster epidemiological health questionnaire and prevalence survey;
Entomology survey, detailing the mosquito vectors in the area;
Intestinal and blood parasitology and virology survey examining the prevalence

of intestinal parasites, malaria, dengue fever, Japanese encephalitis, and

filariasis, and
HIV/STD infection survey.

This survey was conducted in 12 villages on both the north and south shores of Bintuni Bay, including
the three resettlement-affected communities. Overall, 656 households were surveyed, including 22
households in Tanah Merah and 15 households in Saengga.
The survey results were aggregated and refer to all villages surveyed. Hence, while the results
can be a reliable indicator of the health situation in the three resettlement-affected communities,
they are not direct data from those locations. The key findings of the baseline Health Assessment
were:
5.7.1

Primary Health Care

Access to health services in the Bay area is poor and contributes significantly to poor health
outcomes in the local population. Confidence in the government-provided health services is low.
Around the Bay less than 20% of births are attended by a trained midwife, maternal anemia rates are
high, usage of contraception is low and, as a result, the Maternal Mortality Rate is around twice the
national average. The Infant Mortality Rate is also twice the national average. Factors contributing
toward this are (a) anemia in two-thirds of children, (b) low immunization coverage (25%) and (c)
high incidence (+/50%) of malnutrition in children. The prevalence of infectious diseases such as
malaria, tuberculosis, hepatitis and enteric infections exacerbate the adverse health conditions.

5.7.2

Malaria, Dengue Fever, Japanese Encephalitis and Filariasis

Mosquito vectors for malaria, Japanese encephalitis, dengue and filariasis are widespread in the
area:
Malaria has an overall prevalence of 20% (ranging from 1% to 70%);
80% of survey population have had previous exposure to dengue fever, and
Over 15% of the survey population has had previous exposure to viral

encephalitis with 2% exposed to Japanese encephalitis.

The Baseline Health Assessment indicated that just over a quarter (29%) of the Tanah Merah and
Saengga population was infected with malaria. Subsequent surveys conducted in YR2003 revealed
similar prevalence rates in these villages, while prevalence rates in Onar exceeded 40%. Most of
the adults in the resettlement-affected villages are immune to severe malaria. Nonetheless, malaria
still contributes to a high mortality rate among children. In addition, malaria is also a risk to the non-

10 Baseline Health Assessment: Tangguh Development Berau/Bintuni Bay, Irian Jaya (Papua), April
2000, p.3

5 The Resettlement-Affected Communities

97

immune adult population, such as workers from non-malaria regions, and former residents returning
from the city.
5.7.3

Water and Sanitation

Overcrowding of houses is common leading to limited access to safe, clean drinking water in the
directly affected villages. During the Baseline Health Assessment, intestinal parasites were found in
66% of those examined. In Tanah Merah and Saengga, respectively 81 and 77 per cent of drinking
water sources were contaminated by fecal matter and only half of the houses had adequate sewage
disposal. As a result of these factors, acute respiratory infection and gastroenteritis are common
causes of illness and mortality, particularly in infants.

5.7.4

STD Survey
Papua is experiencing a rapidly evolving HIV/AIDS epidemic: It currently holds 33% of all the
reported HIV/AIDS cases in Indonesia, although its population represents only 1% of the countrys
population. The cities near Bintuni Bay (i.e., Sorong, Manokwari, Fak-Fak and Kaimana) have active
sex industries. Surveys have reported that HIV prevalence in sex workers in these centres may
be as high as 17%. Behavioral surveillance survey data from Papuan men in other parts of Papua
with similar demography have shown a high level of mobility, multiple sex partners, including sex
workers, and less than 10% regular condom usage by clients. These factors are likely to predispose
the population to a worsening of the HIV epidemic.

5.7.5

Health Summary
In summary, the inhabitants of the resettlement villages are beset with a number of health challenges
typical of rural areas of developing countries where high rates of infectious diseases appear to be
the greatest cause of mortality. This is set against a background of poor access to health care,
education and other infrastructure; low literacy levels; low household income; overcrowding; poor
nutrition, and minimal health promotion activities and interventions aimed at prevention of health
risks such as smoking and unsafe sex.
To place the Baseline Health Assessment results in context, Tables 5.7-5.9 contrast the Key Health
Indicators of the 12 villages surveyed with comparable data from Papua and Indonesia11. In broad
terms, the data show a poorer health environment in the Bay compared with the rest of Papua or
Indonesia as a whole. This is very much the result of inadequate health services for the Bay.

11 Sources:

98

1.1995 Intercensal Population Survey (Supas 1995). Unpublished. Jakarta Central Bureau of
Statistics.

2.DEPKES (Department Kesehatan) (1998): Indonesia Demographic and Health Survey 1997.
Jakarta: Centre for Health Data, Ministry of Health.

3.Soeharsono Soemantri, PhD (1997): National Household Health Survey Series (SKRT) 1995,
Keragaman dan Kecenderungan Kematian Maternal di Indonesia. Jakarta: National Health
Research Center, Ministry of Health.

4.BPS (Biro Pusat Statistik) (1999): Statistik Kesejahteraan Rakyat (Welfare Statistics) 1998, Based
on SUSENAS (National Socio-Economic Survey) 1998. Jakarta: Central Bureau of Statistics.

5.DEPKES (Departmen Kesehatan) (1998): Profil Keshatan Indonesia 1998. Jakarta: Centre for
Health Data, Ministry of Health.

6.BPS (Biro Pusat Statistik) (1999): Statistik Kesehatan (Health Statistis) 1999, Based on
SUSENAS (National Socio-Economic Survey) 1998. Jakarta: Central Bureau of Statistics.

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 5.7

Key Health Indicators

Berau
Bintuni Bay

Papua

Indonesia

Infant Mortality Rate (per 1,000 live births)

147

55

49

Under-5 Mortality Rate

(deaths of children <5yrs per 1,000 live births)

66

92

56

Maternal Mortality Rate (per 100,000 live births)

733

1,025

450

47

63

65

Berau
Bintuni Bay

Papua

Indonesia

Contraceptive prevalence (%)

27

33

57

Total fertility rate (births/women)

5.4

2.5

% women receiving antenatal care (4 visits)

41

32

69

% pregnant women fully immunized against tetanus

55

58

53

% births attended by trained health personnel

14

37

46

% children exclusively breast fed 03 months

42

72

52

% of under-2s completely immunized

25

78

55

% under-5s with moderate and severe malnutrition

46

36

34

Berau
Bintuni Bay

Papua

Indonesia

% population with access to safe water

45

67

74

% population with access to adequate sanitation

58

46

53

Health Indicator

Life expectancy at birth (yrs)

Table 5.8 Maternal and Child Heath Indicators

Health Indicator

Table 5.9

Indicators of Sanitation

Health Indicator

5.8

Conclusion
The information presented in this chapter describes the context in which displacement and
resettlement are taking place. The information was used to formulate the resettlement action plans
that seek to prevent or mitigate adverse impacts of resettlement. These plans appear in Chapters
810.
The information will also serve as a baseline against which Project monitoring and evaluation will
occur. The information will allow the Project to periodically compare the outcomes of planned
resettlement programs against conditions prior to resettlement, thereby allowing identification of
successes and problems and appropriate actions as and when problems are identified.

5 The Resettlement-Affected Communities

99

100

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

6. Impoverishment Risks and Livelihood

Restoration Strategies for the Tangguh
Resettlement Program
6.1

Introduction
This chapter focuses on the application of the Impoverishment Risks and Reconstruction model
(IRR) to the Tangguh Resettlement Project. The chapter describes the assets foregone by
resettlement-affected communities and the natural resources available at each of the resettlement
sites. It subsequently applies the IRR model, analyzing each type of risk (i.e., homelessness,
landlessness, loss of access to common property resources, joblessness, food insecurity, morbidity,
marginalization and social disarticulation) individually and defining a differential intensity of risk
based on this analysis. A tabular summary of this analysis is also provided with separate tables to
describe the situation in each of the three resettlement-affected communities. In addition to the
assessment of general resettlement risks a separate section outlining resettlement risks specific to
this project is provided. A final section describes strategies to avoid and/or mitigate these risks and
achieve resettlement with development.
As described in Chapter 5, Tanah Merah households primarily rely on usufructuary access to natural
resources to secure their livelihoods. Such access is dependent on: (a) the availability of resources,
and (b) the permission of the resource-owning clan to allow households to utilize these resources for
their own benefit. Hence in Tanah Merah the majority of households relied on securing permission
to access and utilize Sowai and Wayuri clan lands to secure their land-based natural resource
needs. As described in subsequent sections, a key aspect of the Projects resettlement strategy
is that the resettlement sites are located on Sumuri lands with abundant land, forest and marine
resources and where the same tenure systems apply. Hence in efforts to promote the restoration
of resettled communities livelihoods, the key building blocks of resource availability and access to
these resources are in place.

 The Impoverishment Risks and Reconstruction Model is an internationally recognized approach to

analyisis and planning to avoid, mitigate or otherwise address impoverishment risks.

6 Impoverishment Risks and Livelihood Restoration

101

Beyond ensuring the availability of and access to resources for resettled communities, the LARAP
strategy for restoration and continuity of livelihoods is based on the following:
Compensation and replacement of privately owned productive resources lost

as a result of resettlement (i.e., productive crops and fruit trees) leading to the
restoration of productive systems in the resettlement location;
Intensification and improved productivity of traditional livelihood activities (i.e.,

agriculture and fishing) to provide basic food sufficiency and increased incomes;
Promotion of alternative economic activities to diversify livelihood activities, and
Provision of wage-based employment opportunities.

These initiatives seek to simultaneously address the immediate need for restoration of traditional
livelihoods and the medium- to long-term changes that resettlement and the development and
operation of the LNG plant will bring to the resettlement-affected communities.
6.2

Assets Foregone by Resettlement-Affected Communities

All of the resettlement-affected communities will suffer loss of access (either partial or total) to both
private and communal assets and natural resources. This section describes the assets foregone by
each of the resettlement-affected communities. Tanah Merah will forgo both private and public
assets while all three communities will experience at least some loss of access to communally
owned productive natural resources.
Assets and Resource Access/Use Foregone by Tanah Merah
Table 6.1 describes assets and resource use and access foregone by Tanah Merah.
Assets and Resource Access/Use Foregone by Saengga
Saengga residents are not forgoing any private or village assets due to the Resettlement Program.
Nonetheless access and use of some resources will be diminished or lost. Specifically,
Loss of access to 700 ha of Simuna lands released to the Tangguh Project

for construction of the LNG plant and resettlement of Tanah Merah village.
(Note: The 700 ha comprise 200 ha associated with the resettlement of Tanah
Merahand re-construction of Saenggaand 500 ha of land representing a
fraction of the 3,266 ha associated with the LNG site.) Saengga residents report
limited use of the area. The area occasionally is used for cultivation of gardens
and as a source of timber for building dugout canoes;
Exclusive use of fishing grounds to the east and west of Saengga River. After

resettlement the area will be shared with residents of Tanah Merah Baru.
Assets and Resource Access/Use Foregone by Onar
Onar residents are not forgoing any private or village assets due to the Resettlement Program.
Nonetheless access and use of some resources will be diminished or lost. Specifically:
Access to lands in the vicinity of the Onar Baru site plan that could be used for

establishment of gardens and collection of forest produce (although as noted in

Chapter 5, there are virtually no agricultural activities in Onar);
Exclusive use of the Bay in the immediate vicinity of the hamlet. After

resettlement the area will be shared with the 26 families from Tanah Merah.

 The analysis is based upon the YR2001 and YR2002 census data for Tanah Merah and Saengga
and Onar respectively.

102

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 6.1 Assets and Resource Access/Use Foregone by Tanah Merah

Household

Community

Resource
Access/Use

Loss/Impact

Description

Housing

68 dwellings

Kiosks

7 kiosks

Meeting hall

Meeting hall

Places of worship

Protestant church; Catholic church; mosque

Elementary school

Primary school; headmasters/teachers quarters (1x)

Cemetery

Christian and Muslim cemeteries

Sporting facilities

Volleyball (2x); soccer field

Water Resources

Wells (4x); spring (2x);

Roads

One dirt road circling the playing field in RKI and one dirt road running
straight up RKII

Access to forest (timber and

non-timber products, hunting)

Access to forest lands within the 3,266-hectate plant site

Access to sago

Access to sago holdings within the 3,266 ha; primary sago holdings
on eastern boundary near Manggosa River remain accessible

Access to shoreline

Ready access to shoreline facilitates transport and participation in

sea-based livelihood activities

Access to nearshore marine

resources

Collection of mollusks, shoreline fishing imposition of marine safety

exclusion zone will exclude +/9km of coastline of which only areas
proximate to Tanah Merah were utilized

Access to fishing grounds

Harvesting of prawns; fishing imposition of marine safety exclusion

zone will exclude 695 ha of which only nearshore areas were utilized
for artisanal fishing

Access to cultivable land (both

permanent agriculture and
swidden gardening)

Access to Sowai, Wayuri and Simuna forest lands located within the
3,266 ha of which lands most proximate to the settlement were most
intensively utilized

Cultivated productive trees and

perennial crops 1

Estate crops, fruit and other cultivated perennial tree species

(existing tenure system implies loss of access to and ownership of
cultivated trees rather than loss of land)

Subsistence production 1

Loss of standing crop at relocation (existing tenure system implies

loss of access to established garden and its products rather than loss
of land ownership)

1 Detailed records of the measurement and inventories of crops and trees in Tanah Merah are retained by the
Project.

6.3

Access to Natural Resources at the Resettlement Sites

6.3.1

Tanah Merah Baru

The majority of Tanah Merah households elected to resettle to Tanah Merah Baru. Tanah Merah
Baru is located on a 100-ha site (Figure 6.1). The area is bounded on the north by Bintuni Bay and
on west by the Saengga River, while to the south and the west the boundary adjuncts with Simuna
clan lands. The site comprises mangroves and swamps in areas adjacent to the shore and the river,
and secondary lowland Dipterocarp forest on dry land. The mangrove and swamp areas occupy a

 The 200 ha allocated to facilitate resettlement comprise two plots, namely a 150 ha plot lying to
the east of the Saengga River and a 50 ha plot lying to the west of Saengga River and on which
the Saengga village is situated. Of the 200 ha, 100 ha (of the 150 ha plot) was allocated for
resettlement of Tanah Merah Baru while the remaining 100 ha comprising the 50 ha of the 150 ha
plot) and the 50 ha on which Saengga village is located were allocated to Saengga.

6 Impoverishment Risks and Livelihood Restoration

103

total area of 37.5 ha leaving 62.5 ha of dry land that can be utilized for construction of the village (20
ha) and garden development (42.5 ha). Village construction is occurring on a flat ridgeline (running
eastwest). North and south of the village the land drops rapidly toward the shoreline and estuarine
mangroves and the swamps.
Figure 6.1 Tanah Merah Baru Location Map

The resettlement site was selected to replace the Tanah Merah settlement. As described above
the settlement area is surrounded by Simuna clan landholdings that comprise lowland Dipterocarp
forest, swamp forest and savanna. While access to the land and forests contained within the LNG
plant area lying to the east will not be
possible, under Sumuri tenure systems
resettlers may access Simuna lands to
the south and west of the resettlement
site and in this way continue to practice
traditional livelihood activities including
agriculture, shifting cultivation, fruit and
estate tree cropping, gathering of forest
produce, and hunting. Finally access and
use of sago swamps, forests and lands
located east of the LNG plant may occur.
Clan lands lying to the east of the LNG
plant will be accessible by land or sea, the
former requiring overland passage to the
eastern boundary of the LNG plant site,
while the latter will require bypassing the
marine safety exclusion zone associated
with the LNG plant. A footpath facilitating
access to sago swamps at the eastern
edge of the LNG property as well as
forest and land resources further east
will be developed along the fence line in
20052006.

104

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Post-resettlement, Simon Simuna, the

head of the Simuna clan, reported that
there were no land problems following
resettlement. He reported that about 20
resettler households had asked for and
been granted permission to cultivate
gardens on Simuna clan lands lying
outside the Tanah Merah resettlement
land allocation. He also indicated that
the resettlers were able to hunt and
gather non-timber forest products
in this area. Customary rules do not
impose restrictions on subsistence
activities. Tanah Merah resettlers
confirmed that they were able to utilise
adjacent forest resources and that these
resources were adequate to meet their
subsistence needs.

As described above, the resettlement site itself has 42.5 ha of dry land available for establishment of
crop gardens and agroforestry systems. This land area is characterized by the following limitations:
(a) a high number of gullies draining the area), (b) moderate to steep slopes associated with a
high risk of erosion, and (c) infertile, fragile, tropical soils requiring appropriate soil management
systems if they are to be cultivated continuously without depletion. These limitations (particularly
those described in (c) above) are typical of the environment in the vicinity of the Sumuri villages.
Development plans for the cultivable land within the resettlement site call for the subdivision of
land into two categories, specifically, (a) smaller house garden plots located on flatter, more fertile
lands located proximate to houses, and (b) agroforestry plots (for cultivation of fruit trees, etc.) on
more steeply sloping lands. Land within these categories will be divided equally and allocated to
each household with appropriate land title, so establishing private tenure. The LARAP also calls for
the implementation of an agricultural extension program following resettlement to build capacity
to intensify agriculture and address key concerns that will arise, i.e., soil erosion, depletion of soil
fertility and pest management.
Finally, the resettlement of the Tanah Merah community to Tanah Merah Baru will not affect
Saengga households access to areas presently used for agriculture, sago harvesting, collection of
forest produce and hunting.
Tanah Merah Baru will be able to lay claim to and utilize shoreline and nearshore marine resources
lying immediately in front of the 100 ha lot on which the village is being constructeda shoreline
length of more or less 1.5 kilometers. To the east, the marine safety exclusion zone to be established
near the LNG plant in 2008 will restrict access to the proximate fishing grounds of Tanah Merah
while traditional fishing grounds lying farther east can be accessed by land or by bypassing the
marine safety exclusion zone. Fishing grounds to the west of Tanah Merah Baru belong to the
Simuna clan. It is anticipated that, like Saengga households, Tanah Merah Baru households will be
allowed to access and use these fishing grounds.
Following physical relocation, the higher population density around the Saengga River could lead
to increased prawn harvesting rates in the immediate vicinity of the river. Consequently there
is potential for resource competition between Saengga and Tanah Merah Baru households and
possible depletion of marine resources. To mitigate this possibility, the LARAP implements a
Fisheries Access and Development Program that aims to promote access and utilization of more
distant fishing grounds. This program is
described in Section 9.3.2.
6.3.2

Onar Baru

Resettlers to Onar Baru reported that

they had experienced no difficulties

Twenty-six Tanah Merah household elected

in negotiating and gaining access to

to resettle to Onar Baru. In Onar, resources

replacement forest and coastal areas

(i.e., land, forest and marine) are relatively

as they were effectively dealing with

more abundant. The agricultural land is

their own clan. Hence there have

flat and covered with lowland Dipterocarp

been no problems accessing land for

forest. Soils are relatively fertile. All land

establishment of vegetable and forest

and forest beyond the village belongs to

gardens. Together the Onar Baru

the Agofa clan. As described in Chapter 5,

community cleared a large contiguous

Onar households have limited participation

area for household vegetable cultivation

in agriculture, thus garden cultivation is

and individual households have

limited in extent. As required by Sumuri

established forest gardens more distant

clan land tenure systems, non-Agofa

from the settlement.

households will have to seek permission

6 Impoverishment Risks and Livelihood Restoration

105

from the Agofa clan to allow cultivation of lands. Similarly, the fishing grounds in front of Onar are
subject to the hak ulayat claims of the Agofa and their use will be subject to informal agreement
with the Agofa clan. Overall, the limited intensity of resource use at Onar means that the increased
resource use associated with the resettlement in Onar Baru is not likely to result in high levels of
competition between the communities.
6.4

Risk Assessment for the Tangguh Project Resettlement Program

6.4.1

Generic Resettlement Risks

This section presents assessments of the eight types of risk identified in the IRR model. The
differential intensity of each risk is determined by assessing the impact of the displacement on each
resettlement-affected community if no mitigation or restoration efforts were undertaken. In turn
this is affected by the type and amount of resources and services the communities are foregoing
and the characteristics of the replacement sites. The assessed risks are then used as a basis for
designing and planning mitigation and restoration strategies. A tabular summary of this analysis for
Tanah Merah Baru, Onar Baru, Saengga and Onar follows, after which a narrative description of
each risk is provided.

6.4.1.1 Risks of Homelessness and Loss of Access to Village Infrastructure

Given that Tanah Merah residents are forgoing their homes and village infrastructure for resettlement,
the risk of homelessness and loss of access to village infrastructure is categorized as high. For both
Saengga and Onar there are no risks of homelessness and loss of village infrastructure. Mitigation
measures to address this risk are presented in Chapter 8.
6.4.1.2 Risk of Landlessness and Loss of Access to Productive Natural Resources
For Tanah Merah households relocating to Tanah Merah Baru the risk of landlessness and loss of
access to productive natural resources is moderate. This is attributable to:
The Tanah Merah site provides small areas for vegetable and field crop

gardening and agroforestry. Extensive gardening will rely on gaining access to

the Simuna clan lands to the south of the site.
Concentration of fishermen around the Saengga River resulting in increased

harvesting pressure and an anticipated downward trend in household catch and

income.
Greater resource availability and lower population pressures imply that this risk is reduced for
resettlers moving to Onar Baru.
For host communities, similar trends are seen. Saengga households will not suffer reduced access
to agricultural and forest resources that they currently access. However, they do face increased
competition for the fishing grounds that they currently utilize. Consequently they face a moderate
risk associated with landlessness and loss of access to natural resources. In Onar, resource
availability and low levels of competition imply that the community faces a low risk of landlessness
and loss of access to productive natural resources.
Mitigation measures to address this risk are presented in Section 9.3.

106

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 6.2Impoverishment Risk, Assets/Resources Foregone and Restoration and Development

Strategies for Tanah Merah Households Moving to Tanah Merah Baru
Risk Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

1. Homelessness
and Loss of
Access to
Village Property
and Assets

Village Housing, Infrastructure,

and Public Facilities

Physical Village Reconstruction

68 houses

101 new houses with land certificates

Reduced access to land adjacent

to village as a result of village
expansion through either
splitting of existing households
or residents returning from
outside the village

54 additional house plots for expansion

Two wells, one spring, and tap

from the Calmarine Camp

Reticulated clean water system providing water to each

house

Meeting hall

Replace community building

Addition of village office

Elementary school

Replace elementary school

Addition of kindergarten
Addition of junior high school and dormitory

Headmasters/teachers quarters

Housing facilities for teachers

Places of worship (two churches

and one mosque)

Replace places of worship

Addition of houses for the Imam, Pastor and Priest

Christian and Muslim

cemeteries

Provision of cemetery areas in new village

Fencing of cemeteries in Tanah Merah and agreement for ongoing maintenance during plant construction and operations,
as well as for provision of periodic visitation rights for Tanah
Merah Baru and Onar Baru households
Possible future relocation of cemeteries depending on
requirement to expand LNG plant

Sacred sites

Re-design of Plant Dock to avoid disrupting the Sowai Batu

Kumapa (sacred sites)
Protection of other sacred sites to extent allowed by
requirements for development of LNG plant
Relocation of sacred sites where necessary
Renovation and protection of sacred site in Tanah Merah Baru

Volleyball courts (2x)/soccer field

Replacement and addition of sporting facilities (one soccer

field, one basketball court, and three volleyball courts)

One dirt road system

Compacted gravel roads throughout new village

Beach access to the Bay at high

tide

Jetty and boat dock on the Saengga river providing 24-hour

access to the Bay
Two boat landings providing high tide access to the Bay

Risk Assessment:
High

Additional assets provided:

House for village babinsa (security official)
Village head visitors residence
Cooperative office and gallery
Health clinic
Market shelter
Solar and electrical power generation and distribution system
Night street lights and dock lights
Sewage, drainage and waste management facilities
Prepared lots for future post office/bank/phone booth;
teachers housing; customary building

6 Impoverishment Risks and Livelihood Restoration

107

Table 6.2Impoverishment Risk, Assets/Resources Foregone and Restoration and Development

Strategies for Tanah Merah Households Moving to Tanah Merah Baru (continued)
Risk Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

2. Landlessness
and Loss
of Access
to Natural
Resources

Access to Natural Resources

and Income-Generating
Activities

Natural Resource Use-Based Income Restoration

Risk Assessment:
Moderate

108

Access and use of existing

gardens including area
required for rotation
of gardens in swidden
agriculture
Access, ownership and
development of gardens in
new location

Payment for productive trees cultivated on land released to

the Tangguh Project (completed in 1999)
Compensation for sago on land released to Tangguh Project
(completed in 1999)
Replacement gardens (~0.2 ha) on new village land
Technical and material assistance supporting establishment of
agroforestry systems in Tanah Merah Baru and on lands to the
east of the LNG plant
Facilitation of overland access to land resources (agriculture,
forest, sago swamp) east of the LNG plant
Facilitation of adat negotiations to ensure Tanah Merah Baru
households have access and use rights to Simuna forests
south of new village

Loss of access to shoreline

marine resources and
artisanal fishing grounds by
development of LNG plant
and imposition of marine
safety exclusion zone
Fishing grounds in front of
Tanah Merah Baru overlap
with current fishing grounds
of Saengga

Support for improved boats allowing fishermen to bypass

marine safety exclusion zone and access other fishing
grounds in the Bay beyond the area in front of Tanah Merah
Baru
Development of overland access to areas east of the LNG
plant
Facilitation of adat negotiations to ensure Tanah Merah Baru
households have access and use rights to Simuna fishing
grounds
Artisanal fisheries development program to increase and
diversify marine produce and promote value-adding initiatives
Facilitation of entry of commercial marine produce buyers
(especially prawn buyers) to the resettlement-affected
communities, including buyers willing to invest in processing
and storage facilities

3. Joblessness

Employment

Employment-Related Income Restoration

Risk Assessment:
Short term: Low
Long term: High

Limited pre-Project employment

Skills training and employment in village reconstruction, LNG

plant construction, and plant operations
Vocational training

Competition from influx

(migrant) population

Project workforce recruitment and management policy and

procedure providing positive discrimination for locals

4. Marginalization
or Downward
Mobility

Small Business

Business-related Income Restoration

Risk Assessment:
Moderate

Business assets (7 kiosks/

businesses)

Market shelter
Cooperative office
Savings/Loan program promoting improved money
management
Small enterprise development programs

Competition from influx

(migrant) population

Savings/Loan program promoting improved money

management
Small enterprise development programs

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 6.2Impoverishment Risk, Assets/Resources Foregone and Restoration and Development

Strategies for Tanah Merah Households Moving to Tanah Merah Baru (continued)
Risk Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

5. Risk of
Increased
Morbidity

Health Facilities

Health Support

One health outpost (posyandu)

Risk of migrant workforce

introducing new disease

Basic immunity of resettlement-affected communities due to

coastal dwelling and regular contact with outside people
Policies and procedures for workforce management and
recruitment limiting contact between workforce and local
population
Health programs for Project workforce
Community health programs including malaria prevention,
HIV/AIDS awareness and prevention, TB control, mother and
child health, water and sanitation and improved health service
delivery
Mosquito control programs around construction camps and
work areas to reduce risk of outbreaks of mosquito-borne
diseases (malaria, dengue)

Food Production Resources

Food Production Restoration

Loss of standing crop at

relocation and temporary loss
of access to productive gardens
(until new gardens established
in new sites)

Provision of weekly and monthly food packages for each

household throughout the 12-month period following
relocation
Technical and material support for the establishment and
sustainable cultivation of vegetable and field crop gardens

Loss of perennial crop harvest

and temporary loss of access
to productive gardens (until
replaced)

Technical and material support for the re-establishment of

perennial estate, fruit and timber crops

Social Assets

Social Restoration

Disruption and/or loss of

established social systems and
networks

Establishment of and capacity-building for the Tanah Merah

Resettlement Committee
Village participation in new village design
Village participation in the construction of new village and
homes
Support ceremonies for move from Tanah Merah and arrival in
new locations
Provide community development training, capacity-building,
and the opportunity for community participation in all
development activities

Inter-tribal jealousy and conflict

regarding distribution of Project
benefits
Influx (migrant) population
introduces new customs,
culture, etc

Outreach promoting Bay-wide awareness and understanding

of rationale and content of Project Resettlement Program
Project workforce recruitment and management policy and
procedure preempting in-migration to bay
Outreach promoting Bay-wide awareness of potential
disruptive effects of influx (migrant) population and promoting
community and government management of these issues
(refer to Project Indigenous Peoples Development Plan)

Risk Assessment:
Moderate

6. Risk of Food
Insecurity
Risk Assessment:
Moderate

7. Risk of
Community
Disarticulation
Risk Assessment:
Moderate

Medical clinic to be shared with Saengga

Two multi-function health posts (posyandu)
Housing for doctor and nurses
Clean water, sewage, drainage and waste management
system
Benefit from Bay-wide health program implemented by
Project
Health practices mandated at Project construction sites

6 Impoverishment Risks and Livelihood Restoration

109

Table 6.3

Impoverishment Risk, Assets/Resources Foregone and Restoration and Development
Strategies for Tanah Merah Households Moving to Onar Baru
Risks Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

1. Homelessness
and Loss of
Access to
Village Property
and Assets

Village Housing, Infrastructure,

and Public Facilities

Physical Village Reconstruction

26 Houses

26 new houses

Reduced access to land

adjacent to village as a result of
village expansion through either
splitting of existing households
or residents returning from
outside the village

None; area large enough to accommodate expansion needs

Two wells, one spring and taps

from the Calmarine Camp

Reticulated clean water system providing water to each house

Meeting hall

None

One elementary school

One elementary school with addition of kindergarten

Headmasters/Teachers quarters

None

Places of worship (two churches

and one mosque)

Use of existing church and mosque at Onar

Use of places of worship in Saengga and Tanah Merah Baru

Christian and Muslim

cemeteries

Fencing of cemeteries in Tanah Merah and agreement for ongoing maintenance during plant construction and operations,
as well as for provision of periodic visitation rights for Tanah
Merah Baru and Onar Baru households
Possible future relocation of cemeteries depending on
requirement to expand LNG plant

Sacred sites

Redesign of Plant Dock to avoid disrupting the Sowai Batu

Kumapa (sacred site)
Protection of other sacred sites to extent allowed by
requirements for development of LNG plant
Relocation of sacred sites where unavoidable

Volleyball courts (2x)/soccer field

One sports field

One dirt road system

Compacted gravel roads

Beach access to the Bay at high

tide

Beach access to Bay at high tide

Jetty and boat dock access to the Bay

Other: None

Risk Assessment:
High

110

Health Post
Electrical power generation and distribution systems
Night street lights and dock lights
Sewage, drainage and waste management facilities
Prepared lots for churches (Protestant and Catholic)
Bridge connecting Onar and Onar Baru

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 6.3Impoverishment Risk, Assets/Resources Foregone and Restoration and Development

Strategies for Tanah Merah Households Moving to Onar Baru (continued)
Risks Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

2. Landlessness
and Loss
of Access
to Natural
Resources

Access to Natural Resources

and Income-Generating
Activities

Natural Resource Use-Based Income Restoration

Risk Assessment:
Moderate

Access and use of existing

gardens including area
required for rotation
of gardens in swidden
agriculture.
Access, ownership and
development of gardens in
new location for existing Onar
residents

Payment for productive trees cultivated on land released to

the Tangguh Project (completed in 1999)
Compensation for sago on land released to Tangguh Project
(completed in 1999)
Technical and material assistance supporting establishment of
agroforestry systems in Onar Baru and for lands east of the
plant

Loss of access to shoreline

marine resources and
artisanal fishing grounds by
development of LNG plant
and imposition of marine
safety exclusion zone.
Fishing grounds in front of
Tanah Merah Baru overlap
with current fishing grounds
of Saengga

Support for improved boats allowing fishermen to bypass

marine safety exclusion zone and access other fishing
grounds in the Bay beyond the area in front of Onar
Artisanal fisheries development program to increase and
diversify marine produce and promote value-adding initiatives
Facilitation of entry of commercial buyers of marine produce
(especially prawns) to the resettlement-affected communities,
including buyers willing to invest in processing and storage
facilities

3. Joblessness

Employment

Employment-Related Income Restoration

Risk Assessment:
Short term: low
Long term: high

None

Skills training and employment in village reconstruction, LNG

plant construction and plant operations
Vocational training

Competition from influx

(migrant) population

Policies and procedures for Project workforce recruitment and

management that provide positive discrimination for locals

4. Marginalization
or Downward
Mobility

Small Business

Business-Related Income Restoration

Risk Assessment:
Moderate

Business assets (7 kiosks/

businesses)

Market shelter
Cooperative office
Savings/loan program promoting improved money
management
Small enterprise development programs

Competition from influx

(migrant) population

Savings/Loan Program promoting improved money

management
Small Enterprise Development programs

6 Impoverishment Risks and Livelihood Restoration

111

Table 6.3Impoverishment Risk, Assets/Resources Foregone and Restoration and Development

Strategies for Tanah Merah Households Moving to Onar Baru (continued)
Risks Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

5. Risk of
Increased
Morbidity

Health Facilities

Health Support

One health outpost (posyandu)

Development of health post (posyandu)

Access to the new medical clinic in Tanah Merah Baru
Clean water, sewage, drainage and waste management
systems
Support for developing community health programs
Benefit from Bay-wide health program implemented by
Project
Health practices mandated by Project at construction sites

Risk of migrant workforce

introducing new disease

Policies and procedures for workforce management and

recruitment limiting contact between workforce and local
population
Health programs for Project workforce

Food Production Resources

Food Production Restoration

Loss of standing crop at

relocation and temporary loss
of access to productive gardens
until new gardens established in
new sites

Provision of a food package for twelve months post-relocation

Technical and material support for the establishment and
sustainable cultivation of vegetable gardens

Loss of perennial crop harvest

until replaced

Technical and material support for the re-establishment of

perennial estate, fruit and timber crops

Social Assets

Social Restoration

Disruption and/or loss of

established social systems and
networks

Establishment of and capacity-building for the Tanah Merah

Resettlement Committee
Village participation in new village design
Village participation in the construction of new village
Support for ceremonies for move from Tanah Merah and
arrival in new locations
Provision of community development training, capacitybuilding, and the opportunity for community participation in all
development activities

Inter-tribal jealousy and

conflict regarding distribution
of Project benefits
Influx (migrant) population
introduces new customs,
culture, etc

Outreach promoting Bay-wide awareness and understanding

of rationale and content of Project Resettlement Program
Policies and procedures for workforce recruitment and
management that preempt in-migration to Bay
Outreach promoting Bay-wide awareness of potential
disruptive effects of influx (migrant) population and promoting
community and government management of these issues
(Refer to ISP document)

Risk Assessment:
Moderate

6. Risk of Food
Insecurity
Risk Assessment:
Moderate

7. Risk of
Community
Disarticulation
Risk Assessment:
Moderate

112

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 6.4
Impoverishment Risk, Assets/Resources Foregone and Restoration and Development
Strategies for the Saengga Community
Risk Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

1. Homelessness
and Loss of
Access to
Village Property
and Assets

Village Housing, Infrastructure,

and Public Facilities

Physical Village Reconstruction

Risk Assessment:
Low

None
This package is based on the
1999 land release agreements
with Saengga

New houses for households (94) counted in census

Reticulated clean water system supplying each household
with water
Sewage drainage and waste management system
Electrical power generation and distribution
Night street lights and dock lights
One village hall with office for Village head
One village health post (posyandu)
One elementary school and kindergarten
One junior high school shared with Tanah Merah Baru
New Catholic Church with house for the Priest
One Rumah Adat
One soccer field; one volleyball court; one basketball court
Two small wooden jetties and an LCT ramp
Compacted gravel roads

2. Landlessness
and Loss
of Access
to Natural
Resources

Access to Natural Resources

and Income-Generating
Activities

Risk Assessment:
Moderate

Loss of access to Simuna Lands

released to the Tangguh Project

None resettlement has no impact on lands currently

accessed; nonetheless access to technical assistance for
agricultural development will be available

Shared fishing grounds

Support for improved boats allowing fishermen to access

fishing grounds beyond the area immediately in front of the
Saengga River and Tanah Merah Baru.
Artisanal fisheries development program to increase and
diversify marine produce and promote value-adding initiatives
Facilitation of entry of commercial marine produce buyers
(especially prawn buyers) to the resettlement-affected
communities, including buyers willing to invest in processing
and storage facilities
Facilitation of adat negotiations to ensure Tanah Merah Baru
households have access and use rights to Simuna fishing
grounds

3. Joblessness

Employment

Employment-Related Income Restoration

Risk Assessment:
Low

None

Skills training and employment in village reconstruction, LNG

plant construction, plant operations

Competition from influx

(migrant) population

Policies and procedures for workforce recruitment and

management that provide positive discrimination for locals

4. Marginalization
or Downward
Mobility

Small Business

Business-Related Income Restoration

Risk Assessment:
Moderate

Competition from influx

(migrant) population

Savings/Loan Program promoting improved money

management
Small Enterprise Development programs

Natural Resource Use-Based Income Restoration

6 Impoverishment Risks and Livelihood Restoration

113

Table 6.4Impoverishment Risk, Assets/Resources Foregone and Restoration and Development

Strategies for the Saengga Community (continued)
Risk Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

5. Risk of
Increased
Morbidity

Health Facilities

Health Support

None

Risk of migrant workforce

introducing new disease

Policies and procedures for workforce recruitment and

management that limit contact between workforce and local
population
Health programs for Project workforce

Infrastructure

Education Restoration

None

One elementary school replaced

One junior high school shared with Tanah Merah Baru
Access to education (scholarships) program

Food Production Resources

Food Production Restoration

None

None

8. Risk of
Community
Disarticulation

Social Assets

Social Restoration

Risk Assessment:
Moderate

Current established social

systems and networks

Establishment of and capacity-building for the Saengga

Development Committee through training and mentoring
Village participation in new village design
Village participation in village reconstruction
Provide community development training, capacity-building,
and the opportunity for community participation in all
development activities
Support inter-community conflict resolution management as
necessary
Support inter-community activities promoting harmonious
links between neighbouring villages

Inter-tribal jealousy and

conflict regarding distribution
of Project benefits
Influx (migrant) population
introduces new customs,
culture, etc

Outreach promoting Bay-wide awareness and understanding

of rationale and content of Project Resettlement Program
Policies and procedures for Project workforce recruitment and
management that preempt in-migration to Bay
Outreach promoting Bay-wide awareness of potential
disruptive effects of influx (migrant) population and promoting
community and government management of these issues
(Refer to Project Indigenous Peoples Development Plan)

Risk Assessment:
Low

6. Risk of Loss of
Education
Risk Assessment:
Low
7. Risk of Food
Insecurity
Risk Assessment:
None

114

Medical clinic to be shared with Tanah Merah Baru

One village health post (posyandu)
Clean water, sewage, drainage, waste management system
Support for developing community health programs
Benefit from Bay-wide health program implemented by
Project
Health practices mandated at Project construction sites

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 6.5Impoverishment Risk, Assets/Resources Foregone and Restoration and Development

Strategies for the Onar Community
Risk Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

1. H
 omelessness
and Loss of
Access to
Village Property
and Assets

Village Housing, Infrastructure,

and Public Facilities

Physical Village Reconstruction

Risk Assessment:
None

None

Self-help community-based program for low cost appropriate

housing program
Reticulated clean water system delivering water to all houses
Renovation of existing electrical system
Jetties and boat docks
Bridge connecting Onar and Onar Baru

2. L
 andlessness
and Loss
of Access
to Natural
Resources

Access to Natural Resources

and Income Generating
Activities

Risk Assessment:
Low

No loss of access to agricultural

lands

Access to technical assistance for agricultural development

Share current prawning and

fishing areas with the 26
resettled families

Support for improved boats allowing fishermen to access

fishing grounds beyond the area immediately in front of the
Saengga River and Tanah Merah Baru.
Artisanal fisheries development program to increase and
diversify marine produce and promote value-adding initiatives
Facilitation of entry of commercial buyers of marine produce
(especially prawns) to the resettlement-affected communities,
including buyers willing to invest in processing and storage
facilities

3. Joblessness

Employment

Employment-Related Income Restoration

Risk Assessment:
None

Limited pre-project employment

Skills training and employment in village reconstruction, LNG

plant construction, and plant operations

Competition from influx

(migrant) population

Policies and procedures for workforce recruitment and

management that provide positive discrimination for locals

4. M
 arginalization
or Downward
Mobility

Small Business

Business-related Income Restoration Package

Risk Assessment:
None

Competition from influx

(migrant) population

Savings/Loan Program promoting improved money

management
Small Enterprise Development programs

5. R
 isk of
Increased
Morbidity

Health Facilities

Health Support

None

Health post shared with Onar Baru and medical clinic to be

shared with Tanah Merah Baru and Saengga
Clean water and sewage system
Support for developing community health programs
Benefit from Bay-wide health program implemented by the
Project
Health practices mandated at Project constructions sites

Risk of migrant workforce

introducing new disease

Policies and procedures for workforce recruitment and

management that limit contact between workforce and local
population
Health programs for Project workforce

Risk Assessment:
Low

Natural Resource Use-Based Income Restoration

6 Impoverishment Risks and Livelihood Restoration

115

Table 6.5Impoverishment Risk, Assets/Resources Foregone and Restoration and Development

Strategies for the Onar Community (continued)
Risk Type/
Intensity

Foregone Assets/

Resources

Restoration/Development Package

6. R
 isk of Loss of
Education

Infrastructure

Education Restoration

None

Access to elementary school and kindergarten in Onar Baru

Access to education (scholarship) program

Food Production Resources

Food Production Restoration

None

None

8. R
 isk of
Community
Disarticulation

Social Assets

Social Restoration

Risk Assessment:
Moderate

Current established social

systems and networks

Village participation in new village design

Support ceremonies promoting integration of two
communities
Assess scope and, if possible, support attainment of village
status
Provide community development training, capacity-building,
and the opportunity for community participation in all
development activities
Support inter-community conflict resolution management as
necessary
Support inter-community activities promoting harmonious
links between neighbouring villages

Inter-tribal jealousy and

conflict regarding distribution
of Project benefits
Influx (migrant) population
introduces new customs,
culture, etc

Outreach promoting Bay-wide awareness and understanding

of rationale and content of Project Resettlement Program
Policies and procedures for workforce recruitment and
management that preempt in-migration to Bay
Outreach promoting Bay-wide awareness of potential
disruptive effects of influx (migrant) population and promoting
community and government management of these issues
(Refer to Project Indigenous Peoples Development Plan)

Risk Assessment:
None

7. R
 isk of Food
Insecurity
Risk Assessment:
Low

6.4.1.3 Risk of Joblessness

The risk of joblessness is low in the short term and high in the medium to long term.
The Tangguh Project poses no threat to local employment for the resettlers and host communities.
However an influx (migrant) population may compete with the local workforce for employment. To
mitigate this risk, the Project has a workforce recruitment policy and procedures that prioritize local
recruitment. The Project as presented the first local employment opportunities to residents of the
three resettlement-affected communities. Employment opportunities have substantially increased
during construction of the resettlement-affected villages (YR20032005) and will remain high
during construction of the LNG plant (YR2004

2008). Staffing requirements for plant operation are

limited by comparison. Completion of plant construction will be marked by a significant reduction
in levels of wage employment in the resettlement-affected communities. To mitigate the risk of
medium- to long-term joblessness, the Project will invest in vocational training, micro- and smallenterprise development to meet the needs of the village community, and Bay-wide economic and
business development to allow local businesses to compete for LNG operations phase contracting
opportunities. In addition, support for the development of fishing enterprises (particularly prawn

116

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

harvesting) and market improvement will bring parity to incomes derived from prawn harvesting
and wage employment. Mitigation measures to address this risk are presented in Section 9.3.2.
6.4.1.4 Risk of Marginalization or Downward Mobility
In the immediate term opportunities to promote livelihood development (e.g., fisheries, small
enterprise development) as well as employment opportunities offered by the Tangguh Project will
facilitate the on-going transition of the resettlement-affected communities to a cash economy. It
is anticipated that this trend will continue with the development and subsequent operation of the
LNG plant and development of the Bay-wide economy. Accordingly, the risk of marginalizing the
resettlement-affected communities from their pre-Project status is low.
The risks for small businesses in Tanah Merah due to the move are assessed to be low. First, there
are seven kiosks in the village that sell basic commodities such as oil, dry goods, drinks, snacks
and cigarettes. These businesses will move with the community and be able to continue serving
their existing markets. Second, it is predicted that Tanah Merah Baru will become an economic
centrewithin the Bay and as such provide significant small business development opportunities.
There will be no resettlement-induced risk to the small businesses existing in Saengga and Onar.
For all the resettlement-affected villages, the risk of marginalization associated with competition from
an influx (migrant) population is moderate to high. ISP is addressing the issue of spontaneous inmigration and adverse induced impacts through: (a) development and implementation of workforce
recruitment policies that preempt arrival of spontaneous migrants to areas in the immediate vicinity
of the Project (and thus the resettlement-affected villages), and (b) a dedicated mitigation program.
The mitigation program will build awareness and understanding of the potential consequences of
high levels of in-migration, promote establishment of monitoring fora in Kabupaten towns and the
resettlement-affected villages and strengthen capacity to manage these issues.
Mitigation measures to address this risk are presented in Section 9.4 and Chapter 10.
6.4.1.5 Risk of Morbidity
The Baseline Health Assessment indicates that the pre-Project levels of public health are low.
The construction of Tanah Merah Baru and Onar Baru is associated with significant improvements
in village and household water and sanitation facilities and as a consequence general health will
improve. Similarly, development of Saengga and Onar also will provide these services and overall
health will improve. In addition the implementation of the ISP community health program (including
components addressing malaria prevention, HIV/AIDS awareness and prevention, tuberculosis
control, mother and child health, water and sanitation and strengthening of the basic health service
will lead to further improvements in the health of the resettlement-affected population.
The construction labour force poses the main health risk for the resettlement-affected communities.
The concentration of workers from throughout Papua and Indonesia increases the risk of spreading
communicable diseases such as sexually transmitted diseases (including HIV/AIDS), tuberculosis,
and dysentery to the resettlement-affected communities. While the risks of malaria and dengue
outbreaks are also increased, such outbreaks will affect the non-resistant
migrant workforce

more
than the local workforce and communities. Strategies for workforce recruitment and management
are being developed to mitigate this risk. Key amongst these strategies are the operation and
enforcement of a closed construction camp thus preempting direct contact between the workforce
and local communities.

6 Impoverishment Risks and Livelihood Restoration

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Overall the resettlement-affected communities face a moderate level of risk of increased health
problems due to the Project. Mitigation measures to address this risk are presented in Section
10.4.2.
6.4.1.6 Risk of Loss of Education
In assessing the impact of displacement and relocation, the Resettlement Team also considered
possible adverse impacts of displacement on education of children. Of greatest importance was the
potential impact of loss of time associated with physical transfer of the Tanah Merah community
during and immediately after the move (i.e., possible disruption of school schedules). The conclusion
of the preliminary assessment has been that the risk of education loss is low because the duration of
the physical move will be limited to only two weeks. Schools in Tanah Merah will be operational up
until the time of the move while schools in the resettlement villages will be operational immediately
after the move. There will be no disruption of schooling in Onar or Saengga.
Nonetheless, it should also be recognized that the poor educational environment in the Bay will
require that the provision of improved facilities be supported by special efforts to ensure adequate
standards of education are met (i.e., teachers, curricula, etc). For example, for Onar Baru,
government support of the primary school will need to be preceded by government recognition
of the administrative status of the new settlement as a village. Similarly, in Tanah Merah Baru
operation of the high school and associated boarding school will require government agreement
and resources.
Mitigation measures to address this risk are presented in Section 10.4.1.
6.4.1.7 Risk of Food Insecurity
The risk of food insecurity for the resettlers from Tanah Merah is moderate.
Survey results show that cassava is the major staple crop produced by Tanah Merah households.
In addition, a large number of secondary annual crops are cultivated. Physical relocation implies
that all Tanah Merah households will forego access to these food crops during the period of garden
establishment in their new locations. The duration of food support will be determined by when
garden development and planting occurs. After planting this period will be seven months in duration,
reflecting the time necessary to secure the first harvest of cassava tubers. In the medium- to longterm, resettled households will be able to access lands outside of the resettlement sites by seeking
permission from the land-owning clans. Hence more extensive garden cultivation will be possible.
Neither Saengga nor Onar substantially engage in agriculture nor are dependent on subsistence
production to the same extent as Tanah Merah. In addition, neither community will be foregoing
access and use of existing gardens and land for agriculture, i.e., there will be no disruption/loss of
supply. Therefore there is low risk of food insecurity.
6.4.1.8 Risks of Community Disarticulation
Physical relocation from Tanah Merah to Tanah Merah Baru and Onar Baru will occur simultaneously,
reducing the risk of social disarticulation within and between these groups. Nonetheless, physical
relocation to a new location where household allocation, facilities and services, etc., are different
from those in Tanah Merah will cause at least a temporary disruption of the existing social relations
and patterns.

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In addition, the proximity of resettlement sites to host communities is associated with sharing of
facilities and services (i.e., health, education) as well as increased competition for natural resources.
The latter is particularly valid for Tanah Merah Baru and Saengga, where land availability may
be limiting and both the resettlers and the host village will be competing for marine resources.
Accordingly, there is an increased risk of social tension and disputes between resettlement and
host communities.
There are two external risks to the social environment of the resettlement-affected villages, namely:
(a) inter-village and inter-tribal jealousies regarding the Resettlement Program benefits extended to
the resettlement-affected communities, and (b) the potentially disruptive effects of influx (migrant)
populations on local culture, customs, etc. These issues are further described in Section 6.4.2. Both
issues require specific Project interventions beyond the geographical boundaries of the resettlementaffected villages. Mitigation measures to address these risks are presented in Chapter 10.
Overall, the risks of community disarticulation for the resettlers and host communities are
moderate.
6.4.2

Specific Resettlement Risks

The previous section assesses generic risks to the Tanah Merah resettlement. While the section
identified specific risks to resettlement, this section describes the specific risks in more detail.
Adequacy of resources: There is a risk that the replacement resource base is inadequate to meet
village requirements. However the provision of replacement resources or comparable access to
such resources in the resettlement site suggests that this risk will be low. In recognition of the
fact that the resource base is more constrained, the LARAP has: (a) a micro- and small enterprise
development component aiming to promote diversification of livelihoods and income sources,
and (b) a vocational training commitment that aims to promote skills allowing participation in the
developing economy of the Bay or in the regional growth centres. Specific concerns in relation to
the agricultural and marine resource base are described below.
Agricultural production on replacement sites: Based on the limited land area of the Tanah Merah
resettlement site and the typical low fertility of the forest soils there is a risk that the resource
base of the site is rapidly depleted leading to reduced production levels. Depletion of forest soils is
not unique to Tanah Merah but may however be exacerbated by more intense resource utilization.
To mitigate this risk, the LARAP agricultural development plans aim to focus more intensive
vegetable and field crop cultivation on flatter, more fertile lands allowing the remainder to be used in
agroforestry systems. Agricultural extensionists will also work with households practicing agriculture
to increase capacity and introduce appropriate new technologies. A key aspect of their work will
be the erosion control and soil fertility management. Finally it is worth noting that: (a) Simuna clan
forest lands that lie to the south of the resettlement site and, under traditional systems, may be
utilized once permission is obtained from the head of the clan, and (b) as indicated in Chapter 5, not
all households practice agriculture.
Adequacy of marine resources: In Tanah Merah Baru resettlers will face different access to shoreline
and artisanal fisheries. These differences will derive from (a) an altered resource base, and (b)
a higher level of resource use intensity stemming from the fact that access is shared between
Saengga and Tanah Merah Baru. Access to resources used while resident in Tanah Merah will no
longer be possible as a result of the imposition of a marine safety exclusion zone around the plant
site.

6 Impoverishment Risks and Livelihood Restoration

119

With regard to shoreline marine resources, the resettlement site has a coastline of approximately
1.5km which can be accessed from opposite ends. This compares favourably with the shoreline
typically accessed by residents of Tanah Merah. Further, given that it lies on the east bank of the
Saengga River (opposite from Saengga village), the new settlement has virtually exclusive access
to this resource.
With regard to artisanal fisheries, in the vicinity of the Saengga River both Tanah Merah and Saengga
residents will access the same fishing grounds. Recognizing the potential for increased harvesting
pressure and competition between the two villages, the LARAP Fisheries Access and Development
Program aims to increase Tanah Merah households access to more distant fishing grounds (i.e.,
those around Manggosa River).
Operation and maintenance of new infrastructure: The resettlement sites are characterized by
new infrastructure and utilities. Both the electricity and water systems are centralized and require
different modes of social organization and responsibility to ensure their operation. Accordingly there
is a moderate to high risk that communities will be unable to manage, operate, maintain and repair
their new infrastructure and utilities. The Project is cognizant of these risks and has planned and is
implementing the following:
To ensure the existence of local capacity to operate, maintain and to a lesser

extent repair the systems, the Project has recruited a Facilities Manager. The
Facilities Manager will ensure operation of the systems and simultaneously
work with the village government to (a) establish a village management
cooperative, and (b) train villagers in basic operations, maintenance and repair.
Recognizing the social changes that a centralized system imposes, the Project

will work closely with the village community to establish a village management
cooperative that assumes management responsibility for the systems including
operations, household payment, maintenance and repair.
Recognizing that the costs of operating, maintaining and repairing the systems

may be considerable, the Project is: (a) providing the community with
options to reduce operating times and thus costs; (b) working with the village
management cooperative to establish village businessesprofits from which
can contribute to operational costs and thereby reduce household burden; (c)
providing households with opportunities to develop micro- and small enterprises
and also to participate in vocational training thereby potentially leading to
increased livelihood options and household incomes, and (d) assuming on-going
responsibility for the cost of major repairs.
Equity of benefit distribution: The implementation of the Resettlement Program has the potential
to cause social envy and clan conflict as a result of perceived inequity of benefit distribution. This
conflict can occur between tribes as well as within the Sumuri tribe (i.e., between Sumuri villages
and the resettlement-affected village) and between the resettlement-affected villages (Tanah
Merah, Saengga, Onar) but more typically is directed at the Tangguh Project as all people would,
understandably, like to benefit from the Program. A

wide range of issues pertaining to perceived

equity of benefits could be raised. Between resettlement-affected villages these could include
(i) differences in provision (and/or duration) of (a) food baskets, (b) fuel support for electricity, (ii)
differences in provision of replacement assets such as agricultural inputs or boats to by-pass the
marine safety exclusion zone, etc. Between other villages and the resettlement-affected villages
the construction of new villages and provision of a high standard of housing, facilities and utilities,
etc may be the cause of social envy. This

risk is high given: (a) the cultural attributes of the tribes

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where equity of distribution of benefits within a clan is particularly important and (b) the tendency
to mix tribe, clan and village rights. The Project mitigates this risk through a commitment to promote
understanding of the rationale for activities, documentation of all agreements, transparency in
implementation, and adherence to a grievance procedure through which genuine concerns can be
addressed.
Spontaneous in-migration and adverse induced impacts: The risk of spontaneous in-migration
and adverse induced impacts is very high for the resettlement-affected communities (particularly
Saengga and Tanah Merah) and more generally all villages and major towns (i.e., Bintuni, Babo)
proximate to the LNG site. Potential adverse impacts associated with such in-migration include: (a)
resource competition and environmental degradation; (b) economic marginalization; (c) exceeding the
capacity of already limited health, education, sanitation and water supply services and infrastructure;
(d) breakdown of indigenous social networks and customs; (e) deterioration in health (particularly
through STDs and HIV/AIDS); (f) social and ethnic conflict, etc. Clearly these are general concerns
throughout the Bay although they are more acute in the resettlement-affected villages given that
Project entry into the Bay occurred in proximity to these villages, that first construction activities
occurred in these villages, that these villages are the most proximate to the LNG site, and that these
villages provide a higher standard of living than others in the region.
As described above, ISP is addressing the issue of spontaneous in-migration and adverse induced
impacts through: (a) development and implementation of workforce recruitment policies that
preempt arrival of spontaneous migrants to areas in the immediate vicinity of the Project (and
thus the resettlement-affected villages), and (b) a dedicated mitigation program. The mitigation
program will build awareness and understanding of the potential consequences of high levels of
in-migration, promote establishment of monitoring fora in Kabupaten towns and the resettlementaffected villages and strengthen capacity to manage these issues.
6.5

Overview of Restoration Strategies and Actions

This section presents an overview of the strategies and actions designed to avoid and/or mitigate
the risks described above and simultaneously improve the resettlement-affected communities
standard of living.

6.5.1

Homelessness and Loss of Access to Common Village Infrastructure

Re-establish the physical village at new village sites in Tanah Merah Baru and Onar Baru:
Replace the family homes foregone by the Tanah Merah community with higher

quality housing;
Provide land ownership certificates for house plots at Tanah Merah Baru (and

Onar Baru);
Establish village site forgone by the Tanah Merah community, and
Replace and add to village assets and infrastructure forgone by the Tanah Merah

community.
Renovation of housing and public facilities in Saengga and Onar:
Re-construct family homes of Saengga and Onar with higher quality housing;
Provide land ownership certificates for house plots at Saengga, and
Replace and add to village assets and infrastructure in Saengga and Onar.

6 Impoverishment Risks and Livelihood Restoration

121

6.5.2

Landlessness and Access to Natural Resources

Restore and improve family production and incomes from agriculture and marine resources:
Locate and construct the new village sites to provide access to land, forest and

sea resources outside the Project property lines;

Provide land titles for replacement land;
Provide technical and material support to resettlers in Tanah Merah Baru and

Onar Baru to establish and sustainably cultivate more productive gardens;

Provide technical assistance, training, and investments to develop settled,

intensive agroforestry systems with the resettlers in Tanah Merah Baru;

Facilitate overland access to areas to the east of the LNG property for Tanah
Merah Baru, thereby allowing households to readily access additional land
and marine resources;

Provide technical assistance, training and investments to develop farming

systems in Onar Baru;

Develop capacity of fishermen in resettlement and host communities to extend

the range of their fishing grounds;

Facilitate overland access to areas to the east of the LNG property for
Tanah
Merah Baru
, thereby allowing households to readily access additional land
and marine resources;

Support development of seaworthy craft capable of circumnavigating the

safety exclusion zone and providing access to fishing grounds to the east of
the LNG plant for Tanah Merah Baru;

Support development of seaworthy craft for resettlers in Onar Baru as well

the host communities of Saengga and Onar allowing fishermen to access
alternative, more distant fishing grounds.

Add value to and diversify the economic catch and production of marine

resources in the resettlement-affected communities;

Provide technical assistance and training to improve both harvest rates and
processing of prawns;

Facilitate entry of commercial buyers of marine produce (especially prawns)

to the resettlement-affected communities, including buyers willing to invest
in processing and storage facilities;

6.5.3

Promote harvest and sale of marine produce other than prawns, and

Add value to marine produce.

Joblessness
Reduce dependence on natural resource-based incomes by promoting alternative livelihood
activities, vocational training and access to employment:
Promote micro- and small enterprise development in resettlement-affected

communities aiming to meet village-level needs and opportunities that arise

through the economic development of the Bay;

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 Promote participation in vocational training to meet employment opportunities

that may arise through the economic development of the Bay as well as
throughout the Birds Head region of Papua;
Implement a Pr
oject workforce recruitment and management policy and

procedure that prioritizes local recruitment;

Provide training and employment opportunities for resettlement-affected

communities to be employed in the construction of new villages at Tanah Merah

Baru and Onar Baru, as well as renovation of Saengga;
Provide opportunities for one member of each household of the resettlement-

affected communities to be employed during the construction of the LNG plant;

Provide training and employment opportunities during the construction of the

LNG plant;
Provide employment opportunities during the Operational Phase of the LNG

plant for qualified residents;

Purchase goods and services from the resettlement-affected communities

where feasible.
6.5.4

Marginalization or Downward Mobility

Increase incomes through:
Provision of the livelihood/income restoration/development assistance

packages (i.e., agriculture, fisheries, savings/loans, small business

development, employment) described above;
Implementation of micro-finance and Small Enterprise Development initiatives

that: (a) support the establishment of savings and credit programs, and (b)
provide training and support for the strengthening of existing businesses and
establishment of new small- and medium-sized businesses;
Provision of other support through various social initiatives, e.g., Sumuri

Foundation, Community Assistance Program funds, Bay-wide education and

health programs;
Implementation of policies and procedures for
workforce recruitment and

management that prioritize local recruitment.

6.5.5

Increased Morbidity or Health Problems

Improve health status in resettlement villages through:
Development of appropriate water and sanitation systems at a village and

household level;
Establishment of community-managed clean water systems;
Provision of public health facilities (i.e., infrastructure and services);
Implementation of a Bay-wide health program that focuses on: (a) malaria

eradication, (b) health awareness, (c) capacity-building with the Department

of Health to improve the provision of health care through existing programs

6 Impoverishment Risks and Livelihood Restoration

123

and facilities, and (d) health and safety measures for plant construction crew,
including education on sexually transmitted diseases and HIV/AIDS;
Implementation of policies and procedures for
workforce recruitment and

management that limit contact between workforce and local population.

6.5.6

Food Insecurity
For Tanah Merah households, maintain and increase access to household food sources by:
Provision of food support during move;
Provision of food assistance package after resettlement until such time

that it can be reasonably expected that newly established gardens become

productive;
Provision of technical assistance in establishing gardens and maintaining soil

fertility in Tanah Merah Baru and Onar Baru;

Development of training and development programs to sustainably increase

garden, forest and marine production;

Provision of employment opportunities during village and plant construction, as

described above.
6.5.7

Community Disarticulation
Promote development of a healthy social environment, both within and between resettlementaffected communities before and after the move through:
Establishment and capacity-building of village committees to (a) represent

the community; (b) work together on resettlement-related matters, and (c)

independently work toward community development;
Community participation in the design of new villages;
Community participation in the construction of new villages;
Community engagement in planning and implementing restoration and

development assistance packages described above;

Community development training, capacity-building, and opportunities for

participation in all development activities;

Support for appropriate ceremonies in preparation for the move from Tanah

Merah and for arrival in new village sites;

Support for development of human resources in traditional and/or tribal

institutions;
Outreach to build Bay-wide awareness and understanding of rationale and

content of Project Resettlement Program to mitigate inter-village and inter-tribal

jealousies;
Policies and procedures
for workforce recruitment and management that

preempt in-migration to Bay;

Outreach to build Bay-wide awareness of potential effects of a massive

population influx

and promote community and government management of

these issues. (Refer to Integrated Social Program document.)

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6.6

Conclusion
All resettlement has impacts, both positive and negative. It is widely accepted that resettlement
programs should aim to avoid and/or mitigate negative impacts. More recently this obligation has
been expanded to encapsulate the notion of resettlement with development, i.e., resettlement
itself is seen as an opportunity to simultaneously promote development. The World Bank
Impoverishment Risk and Restoration (IRR) model provides the conceptual framework to identify
and address impoverishment risks and facilitate development.
Based on input from qualified personnel and extensive fieldwork, this chapter has utilized the IRR
model to establish a benchmark analysis of the impoverishment risks faced by the resettlementaffected communities. Based on this analysis avoidance, mitigation and/or development strategies
have been identified. Detailed plans for implementing these strategies are presented in subsequent
chapters. Chapter 8 describes the development of household and village infrastructure, (i.e., housing
and public facilities) while Chapter 9 and 10 describe the economic and social restoration programs
for resettlement-affected communities.

6 Impoverishment Risks and Livelihood Restoration

125

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

7. Public Consultation and Disclosure

7.1

Introduction
Public disclosure is the process by which the Project sponsors formally provide an opportunity for
the wide range of stakeholders, both within the country and internationally, to analyze and provide
inputs on the Project. Public consultations and disclosure allow two-way communication between
the Project sponsor and the public. They are essential to gaining a comprehensive, mutual awareness
and understanding, and in encouraging mutual responsibility, ownership and trust among all the
stakeholders affected by the Project and other interested parties. Finally, public consultations also
allow early exposure of potential problems and efforts to address them.
This chapter describes the consultation and public disclosure plans for the Tangguh LNG Project
Land Acquisition and Resettlement Action Plan (LARAP). The key objective of the public consultation
and disclosure process for the Tangguh LARAP is to ensure the participation of the Project-affected
people in planning and implementing activities associated with resettlement. Accordingly, this
chapter seeks to describe

the public consultations undertaken and in so doing

demonstrate that
the Project has followed the public consultation and disclosure requirements for projects involving
resettlement.

7.2

Public Consultation and Disclosure Plan

The Asian Development Bank, World Bank and the International Finance Corporation (IFC) provide
guidelines on the public consultation and disclosure requirements for projects involving physical
or economic displacement. These guidelines provide a framework for public consultation and
disclosure that involves (a) public consultation; (b) participation, and (c) the establishment of a
process to address grievances of affected people. The Asian Development Bank, World Bank
and the IFC require open, direct and culturally appropriate communications with the key Project
stakeholders (including the directly affected population), local government officials, civil society

 World Bank OD 4.30 on Involuntary Settlement and the IFC manual Doing Better Business Through
Effective Public Consultation and Disclosure: A Good Practice Guide.

7 Public Consultation and Disclosure

127

and other representatives of the affected population. Project sponsors are required to ensure the
following outcomes:
Open, direct and timely consultations with the Project-affected population and

other stakeholders throughout the entire Project cycle;

Full disclosure to stakeholders regarding their options and rights pertaining to

resettlement, loss of assets or access to assets, and compensation;

Stakeholders full consultation on technology and economy feasible alternatives

for the establishment of sustainable livelihoods;

Documentation and consideration throughout LARAP preparations of views and

feedback from Project-affected people on land acquisition, valuation method,

and compensation;
Establishment of institutional arrangements that allow the affected population

to communicate concerns to Project personnel throughout implementation, and

that ensure that sectors of the population are fairly represented;
Provision of a summary of the LARAP (along with other Project documents

related to land acquisition and compensation) in local languages and in all areas
of the Project.
According to international guidelines, the LARAP Public Consultation and Disclosure Strategy must
include the following specific steps:
Identify all stakeholders and Project impacts, including: (a) a census of the

affected population, (b) inventory of the affected land and assets, (c) socioeconomic surveys and studies, and (d) analysis of those surveys and studies;
Inform representatives of affected people (i.e., local government, village leaders

and local community organizations) of the Project plan and ask that they inform
their constituents;
Brief all Project line managers and staff who will interact with affected people

on the anticipated effects of the Project and measures to mitigate their impact;
After completion of the census and public notice of the eligibility cut-off date,

arrange for the government to issue formal notice banning construction of new
buildings or capital improvements in areas to be affected by the Project;
Prepare an information booklet with details on eligibility, principles of

compensation and other entitlements, a timetable for implementation and all

applicable grievance procedure;
Prepare and issue regular LARAP information updates.

The following sections describe how the Project has adhered to these guidelines and provides
descriptive accounts of public consultations with the affected population. A chronological summary
of public consultations with the affected communities appears in Table 7.1.

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Table 7.1 Chronological Account of Tangguh LARAP-Community Consultations, YR19992004

Month

Overview

Details

May 1999

Release of land for LNG plant

and resettlement

Negotiations with clan and village community on the

release of lands for LNG plant and resettlement and
compensation for the clans and villages. Negotiations
led to: (a) agreement to replace private dwellings, (b)
agreement to replace and upgrade village infrastructure
and services, and (c) initial agreement on the
resettlement site at Tanah Merah Baru.

Compensation agreement on
productive plants and sago

Agreement on compensation payment for productive

tree crops and sago on land released to the Tangguh
Project.

Agreement on resettlement site

Agreement on allocation of land purchased as

resettlement site for Tanah Merah.

Compensation payment

Payment of compensation for release of lands, tree,

crops, and sago.

March 2001

Tanah Merah village

resettlement workshop

Community workshop with the following outcomes:

(a) agreements from villagers that replacement houses
will be made of wood; (b) decision to establish the
Tanah Merah Resettlement Committee; (c) agreements
to move forward with agricultural and non-agricultural
livelihood development; (d) requests for training and
human resource development to take skilled labour
positions with the Tangguh Project, and (e) common
understanding of the need for social, health, and
educational development.

July 2001

Model House completion

Community evaluation of Model House

October 2001

Establishment Tanah Merah

Resettlement Committee

Establishment of Tanah Merah Resettlement Committee

November 2001

Socio-economic census of Tanah

Merah

Implementation Tanah Merah socio-economic census.

Tanah Merah informed that eligibility for resettlement
benefits would be based on this census.

February 2001

Final site selection workshop

Tanah Merah reviewed pros and cons of Onar and Tanah

Merah Baru and families chose the site to which they
would like to be resettled.

March 2002

Socio-economic census of
Saengga and Onar

Implementation Saengga and Onar socio-economic

census.

JuneAugust 2002

Village design workshops

leading to final village layout
and development agreement for
Tanah Merah Baru

Workshops result in Tanah Merah community

agreement on final design for the new village at Tanah
Merah Baru.

August 2002

Saengga Workshop

Elaboration and clarification of commitments made in

the 1999 Agreements.

August 2002

Establishment of Saengga
Reconstruction and
Development Committee

Establishment of Saengga Reconstruction and

Development Committee

Aug 2002Dec 2003

150 ha land sharing agreement

between TMB and Saengga

Facilitation of agreement between Tanah Merah Baru

and Saengga re. land sharing clause in 1999 agreement

Jan 2003Sept 2004

Consultations with Saengga

community re village layout and
house design

Project-community agreement on village layout and

house design and establishment of social contract to
guide community inputs during construction

MarchJune 2003

House allocation for Tanah

Merah Baru and Onar Baru

Facilitation of community selection and implementation

of house allocation process

Jun 2003

Mar 2004

Agreement on Tanah Merah

Cemeteries

Access and maintenance agreement for Tanah Merah

cemeteries

Oct 2003Mar 2004

Onar village layout and house

design consultations

Project-community agreement on community-based low

cost appropriate housing project for Onar.

July 1999

7 Public Consultation and Disclosure

129

7.3

Community Organization
After the acquisition of ARCO in 2000, the Tangguh Project established a framework for regular
consultations with the resettlement-affected communities.
To provide a vehicle for Project-community interaction, the Project promoted the establishment of
village-level committees (in Tanah Merah, the Tanah Merah Resettlement Committee (TMRC) and
in Saengga, the Saengga Reconstruction and Development Committee (SRDC). The objectives of
the committees are to (a) bring community issues to the Project and disseminate information to
the community, (b) participate in design, planning and implementation of community development
initiatives related to the Resettlement Program, and, in so doing; (c) develop the capacity to represent
the community, in planning and implementing development projects that reflect community
priorities.
In Tanah Merah the community nominated 20 members to TMRC in mid 2001. Members included
representatives from village government, clergy and teachers. In March-April 2002 TMRC participated
in capacity-building training conducted by SATUNAMA . The training aimed to (a) develop TMRC
vision and mission statements; (b) define an appropriate committee structure and leadership
system and (c) develop work plans. Following training, a University of Papua mentoring team was
contracted for six months to strengthen the TMRC. In Saengga the community nominated 23 SRDC
members, including representatives from Onar in August 2002. YPMD  implemented a capacitybuilding training in SeptemberOctober 2002, culminating in a study tour of NGOs in Jayapura that
provided committee members with exposure to a range of sectoral activities including community
development, women in development, environment, adat, etc. YPMD was contracted to serve
as mentors for the SRDC for nine months between March and November 2003. Finally the Onar
Development Committee was established in September 2004 after the physical relocation of the
community from Tanah Merah.
Table 7.2 Agenda of TMRC-Project Resettlement Team Meeting, 7th June 2004

TMRC

Project Resettlement Team

1. Letter from Department of

Education, Kabupaten Teluk
Bintuni (Pak Tomas)

1. Resettlement Team letter to community clarifying agreements re

eligibility for and ownership of houses (Rob)

2. Distribution of agricultural tools

to all resettled households (Pak
Hanok)
3. Schedule for household visits
to Onar Baru to commence
planting prior to move (Pak
Tomas)
4. Schedule for TMRC monitoring
visit to TMB and Onar Baru (Pak
Hanok)
5. Establishment of UD PIALA in
Onar (Pak Yohanes Agofa)

2. Simuna clan claims to have a voice in house allocation in Tanah

Merah Baru (Richard)
3. Clarification of progress in implementing village rule requiring nonresidents to temporarily leave Tanah Merah to allow residents to
prepare for and complete move (Irma)
4. Discussion of Agricultural development in Tanah Merah Baru (Irma)
5. Clarification on food baskets to be provided by Project during
transition period (Rob/Irma)
6. Plans for packing and schedule of LCTs to facilitate move of
household goods (Rob/Irma)
7. Discussion of Labour force for moving household goods from
houses to LCT and subsequently into new houses (Richard)

 USC-SATUNAMA, an Indonesian NGO based in Java that works on community consultation and
mobilization, community development, capacity-building, governance, conflict resolution, gender
issues, etc.
 YPMDYayasan Pemgembangan Masyarakat Desa, a Papua-based NGO focused on community
development

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The committees and Project representatives meet formally at weekly intervals. These meetings
provide a forum for discussion of issues, development programs, etc. and often lead to follow-up
meetings with committee subsections. Table 7.2 presents the agenda of a typical meeting with
the TMRC.
Since October 2002 the committees have been provided with financial support in the form of a
monthly administration (US$1,000/month) and development (US$2,500/month) budget. The funds
provide the committees with the independence to plan and implement development interventions for
their communities while providing members with the experience of development fund management
and application. Subject to certain conditions of use, these funds will continue to be provided until
such time that the Community Action Plan (CAP) funds available under Project DAV Recognition
Program become available (i.e., completion of construction and/or relocation).
The committees have encountered various problems:
1. The multiple leadership and responsibility roles promoted by initial capacitybuilding training conflicted with existing authority patterns where, by default,
the most senior peoples viewpoints were adopted in the interests of social
harmony. This contradiction stymied true participatory engagement and debate,
and in many ways prevented committees from becoming representative
community voices.
2. The contracted mentors failed to adequately facilitate and promote capacity in
the committees as a result of limited capacity among the mentors themselves.
Hence while a committee structure existed, capacity was not developed,
leading to frustration over inaction and loss of responsibility for lack of
outcomes.
3. Some committee members participated for personal gain rather than true
engagement in the resettlement and development process.
4. Employment opportunities offered by construction contractors have usurped
committee members (and indeed the community).
5. The village communities progressively have become cynical about the
committees roles and utility. These problems stem from an initial over estimate
of capacity of both committee members and the contracted mentors.
None of the problems are insurmountable, implying revision in expected progress rates rather than
failure. Furthermore it is clear that establishment and operation of the committees has led to (a)
capacity-building among members, placing them in a good position to contribute to developing
their own communities after resettlement and reconstruction are complete, and (b) a recognized,
although variably respected, mechanism and forum through which the community can raise and
discuss issues with the Project. The committees will continue to work for a 6 to 12 month period
after resettlement and reconstruction to ensure that communities have settled into their new
villages and have developed the capacity to manage the new infrastructure, utilities and services.
The Project will promote the integration of committee members into village government and/or
management structures.
It is noteworthy that Project promotion of self-organization and capacity-building has led to the
development of a more equal relationship between the Project and the communities. At one level this
has been seen in terms of partnership the community, the Committee and the Project are better able
to jointly define, implement and assume responsibility for resettlement- and development-related

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interventions. At another level the Committees have become more able and, as a consequence,
more demanding negotiators. In turn there are several instances where negotiations have led to
changes in Project Resettlement plans and budgets.
Following completion of resettlement and reconstruction, both Tanah Merah and Saengga join the
DAV Recognition Program whereby they will receive US$30,000 per year for a 10-year period.
Management of the DAV CAP development funds utilizes a model based on community participation
and decision-making through group consultation.
7.4

Community Consultations
Formal meetings with the village committees were scheduled to occur every week, with the Project
Resettlement Team initially meeting three times a week but with progressive reduction to a weekly
meeting schedule as the Saengga Development Committee and later the Onar Development
Committee became established. In addition substantial interaction has and continues to occur
outside this process, either directly with development groups (e.g., the fisheries development
group, the womens agriculture group, etc.) or through informal social networks. Finally the Project
also maintains an open-door policy for consultation, with all staff available for direct individual or
group discussions as needed. Detailed descriptions of community consultation activities in relation
to livelihood programming appear in Chapter 9.

7.5

Consultations Related to Site Selection, Land Acquisition and

Compensation and Resettlement

7.5.1

Site Selection for Resettlement

The site selection process for resettlement culminated in the offer of two sites to the Tanah Merah
community and the eventual selection of both of them. For various reasons (described below) the
site selection process was lengthy and drawn out, commencing in 1999 and being finalized in 2001.
The process involved three phases: (1) site selection carried out by PERTAMINA/ARCO; (2) a reevaluation by the Project to ensure that the site selection met international standards, and (3) final
site selection and confirmation by the community.
In Phase 1, a team comprising PERTAMINA/ARCO and the governments Tim Penyuluh led
consultations with clan leaders and the communities of Tanah Merah and Saengga. Initial discussions
led to in-principle support for the Project from the Tanah Merah community and a willingness to
relocate the village of Tanah Merah. Subsequent consultations focused on potential resettlement
sites. Three potential locations were identified: (a) return to the parent village (Manggosa) east of
Tanah Merah; (b) return to the parent village (Serito) further east of the village, and (c) a site west
of the village proximate to Saengga Village.
Discussions regarding site selection considered the following criteria: (a) safety (hazards related
to the natural environment); (b) availability of food crops (such as sago swamps); (c) access to the
river systems and sea; (d) maintenance of community integrity and social ties (i.e. with relatives in
Saengga and Tofoi), and (e) distance from the LNG plant site, from which the villagers anticipated
gaining work opportunities.
Proximity to sago stands led to an initial predisposition toward settling in sites east of the village.
However further consideration led to the conclusion that these sites were too swampy, offering
insufficient dry land and poor access to the Bay. The group came to a consensus that the site west
of the plant (an area adjacent to the Saengga Village and henceforth referred to as Tanah Merah

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Baru) met its criteria and was therefore the preferred relocation site. Following consultations in Tanah
Merah, further meetings in Saengga confirmed that the Saengga community would support the
resettlement of Tanah Merah to Tanah Merah Baru. With in-principle support, the final consultations
involved a physical survey of the proposed resettlement site and establishment of an in-principle
agreement regarding land acquisition.
Following selection of Tanah Merah Baru as the resettlement site, teams from University of
Cenderawasih (UNCEN) reviewed the site and developed a village design. Social and physical
surveys were implemented between January and July 2000  . The UNCEN team identified several
site limitations including: (a) a portion of the 150 ha set aside for construction of Tanah Merah Baru
and establishment of agricultural systems for Tanah Merah Baru and Saengga was swampland,
unsuitable for agriculture or construction without major civil engineering and (b) soils on the
resettlement site were identified as poor.
Following the BP purchase of ARCO, a review of the Project identified concerns with the selection
of Tanah Merah Baru. In July 2001 the Project conducted a survey to identify alternative sites,
resulting in the identification of Onar  as another potential site. The Project evaluated the site
and subsequently presented the Tanah Merah Resettlement Committee and the Tanah Merah
community with an opportunity to review the site selection process. Although initially reluctant to
re-open the site selection process (believing that previous agreements should be maintained), the
Tanah Merah Resettlement Committee agreed to work with the Project to review the Tanah Merah
Baru and Onar data sets, to compare and contrast the relative advantages and disadvantages of the
two sites, leading to final selection of a resettlement site.
The Project emphasized that the objective of reviewing the site selection process was to ensure
selection of the most suitable site. It also emphasized that the site selection process belonged to
the community and that the Project would accept the final community decision irrespective of site
selection. Nonetheless the community had difficulty reviewing the initial site selection process
because of strong feelings against changing previous decisions and that the review itself would
cause delays in resettlement. These discussions occurred between October 2001 and January
2002.
A public household vote was held at an all day village meeting on January 13, 2002. After a
presentation by the Project outlining the advantages and disadvantages of each site and lengthy
discussions, the entire community voted in favor of the Tanah Merah Baru site. However, before
the meeting, some villagers indicated to the Project that they would choose Onar as the relocation
site. Hence, the Project was concerned that some village leaders may have placed undue pressure
on households to vote for Tanah Merah Baru.
In late January 2002, private discussions were held between the Project and those families
expressing preference to move to Onar. One week later the TMRC presented the Project with a
letter stating that a section of Tanah Merah (namely Rukun Keluarga IIRKII) preferred to relocate
to Onar because (a) Onar provided better access to natural resources and (b) the limited area of
Tanah Merah Baru could not accommodate future population growth. This letter was signed by all

 Refer to (a) UNCEN (2000). Socio-Cultural and Economic Aspects of the Communities of Tanah
Merah and Saengga Villages, Babo, Manokwari District; (b) UNCEN (2000). Technical Plan of the
Relocation and Resettlement of Tanah Merah and Saengga Village Communities, Babo, Manokwari.
 Sumuri village comprises two dusun or hamlets, Saengga and Onar. The dusun of Saengga is
the main settlement of Sumuri village. In the legal chapter, the hamlet of Saengga is referred to
as Simuri (Saengga) Village to maintain consistency with the legal documents, which describe
agreements for the residents of the hamlet of Saengga of Sumuri village but not Onar.

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RKII members, or about a half the village. Subsequent door-to-door consultations in RKII suggested
that a majority, although not all, did prefer Onar.
Division of opinion in the village facilitated re-opening of the site selection process by (a) calling for
a two-week cooling-off period; (b) providing the community with the choice of splitting between
the two potential sites; (c) providing a clear description of family benefits at each resettlement site;
(d) enabling a well-respected Papuan leader to assist the community, and (e) changing voting from
a public to a private ballot. Each family had two days to deliberate the question of site preference
and could mark their ballot in the privacy of their home. The final vote was conducted between
February 2427, 2002. Ballot counting in a public forum in the village indicated that 101 families
chose to move to Tanah Merah Baru and 26 families chose to move to Onar. Accordingly the Project
committed to construct a new village at Tanah Merah Baru as well as to expand the Onar hamlet
with new housing and village infrastructure for the resettling families.
The ballot also provided each family with the opportunity to record the reasons for selecting their
preferred resettlement site. Fifty-seven family heads took advantage of this and recorded their
reasons for selecting their preferred site. Of the 53 voters that chose Tanah Merah Baru, 32 cited
the fact that Tanah Merah already agreed with PERTAMINA/ARCO to move to that site and this
was the preferred site. Other reasons (none mentioned more than twice) were: Tanah Merah Baru
was near both Tanah Merah and the LNG plant, had good land, and could be constructed faster than
the Onar site thus eliminating further delay. The four respondent families who had voted for Onar
all indicated that they had chosen the site because they felt that it provided greater access to forest
and marine resources.
The site selection process was both difficult and drawn out. Nonetheless PERTAMINA/BP sensitivity
to divisions within the community and commitment to ensuring the community was fully informed
and aware of their choices and were free to express their preference has:
Increased the potential for social cohesion for both groups by ensuring that

none of the resettled population felt forced into a location they did not choose;
Reduced pressure on aspects of land suitability and access to natural resources

by dividing the resettlers among two sites and

Complied with international standards for providing viable choices to resettlers.

The Tangguh Project determined that both of these sites were viable, although each required slightly
different types and levels of intervention to transform the forested sites into human settlements
with housing, services, facilities and productive gardens.
7.5.2

Land Acquisition and Compensation

The Tangguh Project had to acquire two parcels of land, the first a 3,266 ha site for LNG plant
construction and the second a 200 ha site to facilitate resettlement. The land acquisition process
involved: (a) discussions with the local government; (b) socialization meetings with the local
community; (c) negotiation meetings with the land-owning clans  following which Minutes of
Agreement were signed, and (d) the execution of two Deeds of Relinquishment.

 Three clans of the Sumuri tribe held traditional rights (hak ulayat) to the 3,266 ha site purchased for
construction of the LNG plant. Specifically, the Simuna clan owned 500 ha, the Wayuri clan owned
1,866 ha, and the Sowai Clan owned 900 ha. The Simuna clan also held the traditional rights to
lands selected for resettlement at Tanah Merah Baru.

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7.5.2.1 Initial Discussions with the Local Government

In 1998, PERTAMINA/ARCO met with the Governor of the Irian Jaya Province to introduce plans for
developing the Tangguh LNG Project. Thereafter, discussions with the Manokwari Bupati and other
local government representatives occurred in April 1999 to discuss the land acquisition plans for the
Project. These discussions elucidated whether the proposed plant and resettlement locations were
acceptable and whether the local government would support the proposed land acquisition.
April 6, 1999 : At the initial meeting, PERTAMINA/ARCO explained the Project

background and the need to acquire land in a location within the Kabupaten of
Manokwari and simultaneously introduced the possibility that people might
need to be relocated to accommodate the Project. (At this stage, the exact
location of the site remained unidentified). The Manokwari Bupati expressed
support for the Project and urged identification of a suitable location as soon
as possible to allow his office and other local government offices to provide
support for the land acquisition process. Local government emphasized that
land acquisition should be as transparent as possible, with full participation of
the relevant community leaders. Given that the majority of land in Manokwari
District is held under traditional customary rights (hak ulayat), the Bupati
advised that land acquisition should be facilitated by a special team (Tim
Penyuluh) formed by the Bupati. The teams objectives were (a) to provide
information to the community on social, economic and security issues relating
to the impact of land acquisition for the Project; (b) to assist in finding optimal
solutions if community relocation was necessary, and (c) to facilitate reaching
agreements with the community. Reference also was made to the Land
Procurement Committee, the established government team responsible for the
government land acquisition in the area.
April 7, 1999 : A second meeting with the Secretary to the Bupati identified the

members of Tim Penyuluh.

April 8, 1999 : A further meeting with the Manokwari Bupati discussed the

general process of land acquisition and the documents that would be required
to authorize and commence acquisition.
April 9, 1999 : Manokwari District representatives met to discuss the work

plan for Tim Penyuluh. (The formation of Tim Penyuluh, for the purpose of land
acquisition for the Tangguh LNG Project by PERTAMINA/ARCO within the area
of the Bintuni Bay, was pursuant to the Decree of the Bupati of Manokwari
No.79 of 1999, April 7, 1999.) Tim Penyuluh had to periodically report to the
Bupati of Manokwari ). It was recognized that the proposed land acquisition

 Advisors: the Bupati of Manokwari, Heads of DPRD (Local Parliament); Dandim 1703 (Local
Armed Forces); Kapolres (Local Police); Kejaksaan Negeri (District Attorney) and Pengadilan Negeri
(District Court) of Manokwari.

Chairman: Assisten Tata Praja Sekwilda (Government Administration Assistance to Secretary of

Manokwari Kabupaten).

Vice Chairman: Ketua Bappeda (Head of Local Development Planning of Manokwari Kabupaten).

Members: Kakan Sospol (Head of Social and Political Division of the Manokwari Kabupaten); Head
of the Land Office of the Manokwari Kabupaten, Kepala Balai Sub-Inventarisasi dan Perpetaan
Kehutanan (Head of Office of Sub-Division of Forest Inventory and Mapping of the Manokwari
Kabupaten); Kepala CDK XV Bintuni (Head of Sub Forestry Division XV in Bintuni); Kepala
Perekonomian Setwilda (Head of Economy Division of Secretary of the Manokwari Kabupaten);
Kabag Hukum Setwilda (Head of Legal Division Secretary of the Manokwari Kabupaten); Kepala

7 Public Consultation and Disclosure

135

would lead to changes in the local community. The proposed work plan was to
cover the following issues: (a) development planning for the immediate local
community and Bintuni Bay in general; (b) social and cultural aspects such as
ownership, adat, and other related matters; (c) relocation of villages; (d) legal;
(e) land; (f) forestry; (g) participation of the local community in Project activities;
(h) manpower, and (i) security.
7.5.2.2 Initial Consultations and Socialization
Socialization meetings with the local communities included landowners, villagers and owners of
cultivated plants. The intention of these meetings was to ensure that the communities understood
the nature of the Project, the extent of land acquisition required, the need to relocate Tanah Merah
village and the implications of this for the area. Simultaneously, consultations allowed the Project
to understand the concerns of the communities, to identify their livelihood strategies, and the land
related rights recognized by the communities.
The Project realized that it would be important for the community to have support and input from
local well-respected individuals who were not members of the three clans or the villages, and
therefore did not have direct interests in the land release and resettlement process. As there was no
Lembaga Masyarakat Adat in Babo district at the time, the Project approached two individuals who
were well respected in the area. The first was an elder from Babo, who had traveled widely through
Indonesia, and was considered by the community to be very knowledgeable and experienced. This
person was a member of the Iraratu tribe, and had formally been the head of the village in Babo.
The second person was the head of the Sumuri tribe, from the Siwana clan and resident in Tofoi.
These two people acted as advisors, attending meetings and publicly expressing their views to the
community.
7.5.2.3 Negotiation Meetings
Following initial consultations and socialization, the communities expressed their agreement to
have the plant located near Tanah Merah, their willingness to relinquish traditional land for the
construction of the plant, and to be resettled. Subsequently a series of negotiations between the
Project, the villagers and the traditional landholders, established appropriate compensation for
customary land and productive tree ownership, and the need to relocate Tanah Merah village.
7.5.3

Resettlement
The Tanah Merah communitys in-principle support of the Tangguh Project and resettlement is
contained in a set of 1999 Agreements. These agreements were the result of the consultations on
land acquisition and resettlement described above. In addition to articulating a willingness to resettle,
the agreements outline a compensation framework as the basis for resettlement. Specifically the
agreements indicate that the Project will:

Pelabuhan Laut Bintuni (Head of Sea Port in Bintuni); Camat/Uspika ( Heads of the relevant
kacamatan administrations); Kakandep Naker (Head of the local Regional Office of Department of
Manpower in the Manokwari Kabupaten), and members from PERTAMINA and ARCO.
 In carrying out this consultation, guidance came from Tim Penyuluh and the procedures set
out in Presidential Decree No.55 of 1993, specifically the implementing regulations relating to
socialization and consultation with the landowners and local communities.

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 Construct new houses for Tanah Merah villagers at the resettlement site,

with room set aside for further house-building if required, as well as improve/
renovate existing houses of the residents of Sumuri (Saengga) village;
Construct public and social facilities at the resettlement site for use by the

resettled village and the residents of Sumuri (Saengga) village;

Provide land with certified ownership of house lots for the resettled Tanah

Merah villagers in both locations, and the residents of Sumuri (Saengga) village.
In addition, the Project assumes full responsibility for taxes/fees associated
with land certification at the resettlement sites and Sumuri (Saengga) village;
Provide garden sites for the resettled village and the residents of Sumuri

(Saengga) village;
Relocate cemeteries/graveyards to the resettlement site, and
Respect and safeguard sacred places on the LNG plant site to the extent

permitted by the construction plan for the plant.

In March 2001, further consultations with the Tanah Merah community took place to clarify
commitment details and resolve village layout and house design. In August 2002, a final agreement
on village layout and house design was developed with Tanah Merah community.
In August 2002 a workshop involving the Sumuri (Saengga) village community was held to discuss
the impact of the Project on Saengga village. The workshop dealt with community access to natural
resources, employment prospects with the Project, community development, traditional law, human
rights, the nature of the infrastructure to be constructed at Saengga, and support for the village.
Again, the workshop gave the community an opportunity to discuss aspects of the 1999 Agreements
in more detail and allowed the Project and local government to confirm its commitments.
In November 2001 and March 2002, a socio-economic census was conducted in the resettlementaffected villages. The census was subsequently the basis for defining eligibility to receive
resettlement benefits.
7.6

Implementation of Land Acquisition and Resettlement Agreements

7.6.1

Compensation for Trees

A prerequisite to the physical relocation of the Tanah Merah community was compensation for
food and tree crops and the naturally occurring sago stands. Consultations with the community
led to agreement to survey existing stands to ascertain ownership and quantity. Subsequent
compensation was based on the Bupati of Manokwaris Decree No.213 of 1997, May 12, 1997.
The survey and compensation payments for plants on the Tanah Merah site occurred in May 1999.
At the time, it also was agreed that no further compensation would be paid for plants coming into
existence after the survey.

 T
 he agreements cited are contained in a number of Minutes of Agreement, which were drawn
up and signed by representatives of PERTAMINA and ARCO and the communities, witnessed by
members from Tim Penyuluh and in two Deeds of Relinquishment and other documents which are
described in Chapter 4 in more detail. A number of verbal agreements were reached, including an
agreement to provide electrification and water to the resettled villagers of Tanah Merah and Desa
Sumuri (Saengga) and a commitment to provide employment opportunities at the plant.

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A similar process continues to compensate owners of productive, cultivated crops and/or sago on
the resettlement sites. Specifically, as and when it is recognized that the Project is required to fell or
otherwise acquire productive crops, consultations with affected villagers are organized, and a joint
survey is conducted and appropriate compensation is paid.
7.6.2

Land Allocation
The 1999 Agreements refer to the purchase of 200 ha from the Simuna clan to support resettlement.
The agreement specifies the 200 ha is to be used as follows: (a) a 50 ha plot west of the Saengga
River (the site of Saengga village) will be used for village re-construction, and (b) a 150 ha plot
east of the Saengga River will be divided, with 50 ha for Tanah Merah Baru construction and the
remaining 100 ha to be shared equally between Tanah Merah Baru and Saengga for agriculture.
Implementation is complicated by the fact that, of the 150 ha of land east of Saengga River,
approximately half is uncultivable swampland. Hence, only 75 ha of dry lands are available, with 50
ha allocated to village construction and development, leaving only 25 ha for distribution between
the two villages for gardens.
Efforts to implement the land-sharing component of the agreement were conducted between January
2002 and December 2003. Given the length of time between signing of the 1999 Agreements and
the implementation of provisions within the agreements, the process of land allocation between the
two villages was made difficult by limited general awareness of the 1999 Agreements, specifically:
(a) that 50 ha land on which Saengga village is located had been sold, and (b) awareness that
Saengga community had a stake on lands east of the Saengga River. The Resettlement Team
assumed a facilitation role for the two village communities in which the contents of the agreements
were clarified and the communities were asked to settle the location, boundary and land use.
However the lengthy process of Project-led consultation and facilitation between the villages failed
to resolve the issue. In early 2003 subsequent discussions between Tanah Merah, Saengga, local
government and the Project came to a land-sharing agreement in which the villages would share
the swamp and dry lands equally (i.e., each village would receive 37.5 ha and 12.5 ha of swamp and
dry land respectively). Initial proposals for the locations of these areas were accepted. A Manokwari
Department of Lands survey followed by a boundary walk with representatives of all stakeholders
led to an interim agreement recognizing the validity of the boundaries, the mechanism for land
division and sharing. A final agreement with the following key points was signed in December
2003: (a) the outcome of the land division and sharing agreements is in accordance with the 1999
Agreements; (b) the Project has no further responsibility to facilitate discussions regarding how the
land might be used.

7.6.3

Cemetery Access and Maintenance Agreement

As described in Chapter 4, for the period that the Project remains a two-train project as described
in the approved AMDAL, the cemeteries will remain at Tanah Merah. Following consultations with
the Tanah Merah Resettlement Committee Preparation a draft cemetery access and maintenance
agreement was prepared. The draft agreement was circulated within the TMRC and with key
community leaders in the village and with relevant Project sections. Review and revision of the
document led to completion with relevant parties (i.e., village leader, clan leaders, head of TMRC,
representatives from local government and the Project) being signatories.

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7.6.4

Sacred Sites
This section describes the consultation and facilitation processes related to the relocation of the
various land-based ancestral and sacred sites located within the LNG plant construction area. As
part of on-going preparations for the village move, in late 2003 the Sowai clan and the Project
identified a number of land-based ancestral and sacred sites located around the village of Tanah
Merah. Cross reference with LNG plant construction plans indicated that these sites would need to
be relocated to allow construction to proceed.
Initial discussions with the Sowai clan explored the willingness to move ancestral and sacred sites.
At first the Sowai clan expressed reluctance to facilitate the relocation of these sites, citing their
fear that disturbance of the sites may lead the ancestors and spirits to seek retribution by harming
the LNG plant construction workforce. In addition some members expressed their concern that the
relocation of sacred sites was unheard of in Papua and their facilitation of such a process may make
them objects of ridicule. Nonetheless the Sowai agreed to consult with their spirits and within the
clans themselves regarding the proposed relocation.
Following several internal meetings including sances with the spirits, the clans have concluded that
relocation of the sacred sites is in the interest of the community and the sacred sites themselves.
The three land-selling clans have identified and agreed upon the physical procedures and the adat
ceremonies that will best ensure the harmonious relocation of the sites. The Project committed
to facilitating the process with construction of new sacred houses (rumah kramat) for the Sowai
and Wayuri and subsequent facilitation of adat ceremonies calling the spirits to the new houses.
Construction of the sacred house occurred in the 3rd quarter of 2004, and adat ceremonies calling the
spirits to the houses were conducted in November 2004. A final adat ceremony will be conducted
in early 2005 prior to construction starting in earnest.

7.7

Consultations Related to Village Layout, House Design and Allocation

7.7.1

Village Layout and House Design

The Project committed to using consultative and participatory processes in all aspects of village
layout and house design to ensure that the resettlement-affected communities are engaged in the
process, develop a sense of ownership and partnership in the construction projects, and, in the
end, secure a product that meets their requirements (and in this way the Projects requirements).
Given the priority to facilitate resettlement of Tanah Merah, the Project has first implemented this
process with the Tanah Merah community. The same process has (and to some extent still is being
implemented) with the host communities. Detailed descriptions of consultations are provided in
Section 8.2 for Tanah Merah Baru and Onar Baru and Section 8.3 for the host villages of Saengga
and Onar Lama.

7.7.1.1

Tanah Merah Baru

In the case of Tanah Merah Baru, the house design and consultation process was conducted in
2001. In March 2001 a University of Cenderawasih (UNCEN) team led a community workshop
during which material for house construction (i.e., wood) was agreed upon. Further community
consultations led to development of a house design and construction of a model house at Saengga
Base Camp (the future location of Tanah Merah Baru) in July 2001. Villagers had an opportunity to
visit and spend time in the Model House. Community opinions and ideas were collated and the
house design changed accordingly.

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139

The consultation process for village design and layout of Tanah Merah Baru spanned the five-month
period between March and July 2002. This process was based on integration of the UNCEN socioeconomic and cultural analysis of Tanah Merah with physical and technical assessment of the
selected resettlement site. Based on this analysis, five alternative village layouts for Tanah Merah
Baru were developed. These designs were presented to the community, leading to the selection
of one. A scale model was prepared for community appraisal. Repeated cycles of adaptation and
modification in response to community input led to a revised scale model and an agreement in
August 2002 on the final layout for Tanah Merah Baru. Completion of consultations led to the
development of tender documents in September 2002.
7.7.1.2

Onar Baru

The August 2002 agreement also included a statement of requirements for Onar Baru. For the 26
families electing to move to Onar the Project initially proposed an in-fill model where 26 houses
would be added to the existing hamlet with simultaneous improvements in amenities for existing
residents. However, subsequent consultations with the Onar resettlers led to the rejection of this
proposal and the recommendation to build an alternative village site on the east bank of the Onar
River. Preference for the alternative site included reduction of tensions between the resettlement
and host community, better access to the sea, better agricultural resources, scope for expansion,
etc. A process similar to that described for Tanah Merah Baru led to the development of a final
design and layout and development of tender documents.
7.7.1.3

Saengga and Onar

The 1999 Agreements concerning Saengga village allowed for renovation (i.e., re-construction)
of existing homes in the village. Between April and August 2002, intensive consultations clarified
the commitments of the 1999 Agreements with the Saengga community. In August 2002, details
of these consultations were documented in a community workshop and agreement. Workshop
results specified that the Project would provide new housing, public facilities and infrastructure for
Saengga village. Similarly, continued monitoring and evaluation led the Project to commit funds for
a community-based housing project for the Onar host community in October 2003.
While these commitments exceed international standards for host villages, they reflect fundamental
concerns with the impact on host communities of the arrival of a group of people that is both
displaced and in receipt of significant resettlement benefits. Housing projects in Saengga and Onar
aim to provide services comparable to those provided to the resettlers and in so doing reduce
tensions between villages and create a basis that will facilitate development of the newly created
community, i.e., the hosts and the resettlers.
In the case of the host villages, consultative processes similar to those described for Tanah Merah
have also been implemented. In Saengga, additional consultations on social construction-related
issues (house allocation, compensation for trees, safety, etc.) commenced in November 2003.
The primary purpose of these consultations has been to engage the Saengga community in the
process and thereby build general awareness and understanding (as well as resolving a number
of outstanding issues) such that construction could proceed uninterrupted and in the best interest
of all parties. The process concluded in the development of a social contract with the community
spelling out stakeholder roles and responsibilities and the resolution of specific issues. Finally, for
the low-cost appropriate housing project for Onar, community consultations concluded in the 2nd
quarter of 2004.

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7.7.2

House Allocation
The Tanah Merah community relocating to Tanah Merah Baru elected to use a lottery to allocate
house lots, recognizing that random allocation of housing would promote better relations within
the new community and also promote a wider understanding and acceptance of the three faiths
practiced in the village. The lottery was conducted in the period between March to June 2003. In
contrast, the Onar resettlers conducted an internal group meeting during which they agreed upon
allocation of house lots.
In Saengga, the process of village layout, house design and allocation are still under way. The house
allocation process is more difficult because entitlement to new houses in Saengga is related to land
sold by the Wayuri, Sowai and Simuna clans. According to the 1999 Agreements, existing houses in
Saengga will be renovated as part of the compensation package for selling land. This commitment
grew in a 2002 Lokakarya (public consultation) to provide a new house identical to the Tanah Merah
Baru houses for each head of family residing in Saengga as of the March 2002 census. The problem
arises because many Saengga residents who are entitled to houses are not members of the landselling clans while many members of the three land-selling clans living outside the village will not
receive houses.

7.7.3

Allocation of Agricultural Lands

Given the finite area of Tanah Merah Baru, the division and allocation of agricultural lands has
been addressed pro-actively. As described in Chapter 9, the available land area has been divided
into two agricultural land use units, namely vegetable gardening and agroforestry. In late 2003
the Resettlement Team consulted with the TMRC and the community as to what allocation
mechanism was most appropriate for vegetable garden areas. A lottery system was agreed upon
and implemented. Allocation of agroforestry lands occurred after the village move in July 2004. The
Resettlement Team, together with household heads from each RK, walked the area and allocated
plots.
For both vegetable gardening and agroforestry, some households expressed their dissatisfaction
regarding the limited area and the results of lottery systems (i.e., their allocated plot was not
sufficiently close to their home). This has led to some re-allocation of plots and it is now fair to say
that the process and its conclusion have been broadly accepted.

7.7.4

Ownership and Operation of Public Infrastructure and Utilities

The villagers of Tanah Merah Baru and Onar Baru, local government and the Tangguh Project have
agreed upon a phased handover of ownership and management responsibilities for village facilities
and utilities. Such handover will occur: (a) in accordance with national, provincial or regency laws
and regulations; (b) after the village has ascertained permitting requirements and set preconditions
in place; (c) after the village has established rules and regulations pertaining to use, and (d) after
appropriate capacity has been developed to ensure sustainable operations. As described in Chapter
4, handover of any given infrastructure, facility or utility will be effected by a Handover Agreement.
The handover of ownership and operations of village infrastructure, facilities and utilities has been
complicated by: (a) difficulty to engage the community in these issues prior to the move; (b) the
lack of good governance within the village (e.g., lack of a legislative branch of government), (c)
the need to establish an appropriate village structure (i.e., village management cooperative) in
Tanah Merah Baru and Onar Baru, and (d) the need to develop appropriate village management and
technical capacities. The process thus involves promoting community awareness, promoting good

7 Public Consultation and Disclosure

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governance, the establishment and capacity-building of a village management cooperative, and the
development of village-level technical capacity for operations and maintenance.
7.8

Linkages with Government

The Projects Integrated Social Program (ISP) and Resettlement Team have established and
maintain links with government at the district and regency levels. Historically the Projects primary
relationship with government (both district and regency) has involved government participation as a
facilitator and/or witness to agreements between the resettlement-affected communities and the
Project. At various times the Project has sought to engage government departments in training and
delivery of sectoral programs (i.e., agriculture and fisheries) but generally government has proven to
be under-staffed, under-resourced and without capacity to deliver requisite inputs in the specified
time frame.
With the evolving political situation and completion of relocation, new opportunities for engaging
government exist. Hence for education and health service provision links between the Resettlement
Program, Project sectoral programs and relevant government departments have and continue to
facilitate the delivery of these services to the resettlement-affected communities. In addition,
education- and health-related infrastructure and facilities will be handed over to the regency
government. To promote village-level good governance, the Project has approached district
government to assign staff to the resettlement-affected villages to develop capacity of village
government and the communities. In agriculture, the Resettlement Team will again approach the
regency government to assess their interest and capacity to participate in the delivery of agricultural
extension programs to the target communities.

7.9

Linkages with NGOs

In general terms the Project engages NGOs in Project consultations as well as in program
implementation. With regard to Resettlement, all livelihood restoration programs involve subcontracting external expertise (typically NGOs but all Universities, government services) to
implement component activities.

7.10

Grievance Tracking and Resolution

Between 2002 and 2005 the Resettlement Team has utilized an informal approach to tracking and
resolving grievances. While this approach has promoted the use of the village committees as a
vehicle for expressing grievances and managing conflict, it has simultaneously been receptive to
direct approaches by individuals and groups within the community. Documentation of committee
and group meetings exists in Resettlement Team members notebooks. The approach has been
successful as result of the frequency and intensity of contact between the communities and the
Resettlement Team.
Going forward, it is recognized that a formal mechanism for grievance tracking and resolution needs
to be established.
The grievance tracking mechanism will involve:
(a) Resettlement and CAFT staff will be responsible for documenting verbal and
written complaints. Complaints will be written onto a complaints log and action
form.

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(b) All complaints log and action forms will be forwarded to the Resettlement
office. Forms will be assigned a number, documented and appropriate actions
to close out the complaint will be determined and written onto the form. The
complaints log and action form records: (i) who reports the complaint; (ii) the
date the complaint was received and recorded; (iii) the nature of the complaint;
(iv) information of proposed corrective action; (v) date response (verbal and
written) was provided to the complainant; (vi) corrective actions taken by whom
and when, and (vii) the date the complaint was closed out. Where necessary
the Team will investigate complaints from the community and an investigation
report will be developed.
(c) Timelines for possible actions will be determined by the nature of the grievance.
The Resettlement Team will assume responsibility for ensuring all actions are
implemented to close out the complaint. Where necessary, compensation
(monetary or in kind) will be provided.
(d) If the Resettlement Team is not able to respond or deal with the complaint
directly, the Resettlement Manager will refer the complaint to the ISP Field
Manager. However the Resettlement Team remains responsible for tracking the
complaint and ensuring that it is dealt with.
If unable to address the grievance directly, the ISP Field Manager will engage
ISP program managers and/or the broader Project management as appropriate.
(e) A written response for every grievance will be prepared within 14 days. The
written response will be delivered verbally before a hard copy is provided to the
complainant. The complainant will be asked to sign and date the complaints
log and action form to confirm receipt of the Project response. If more time is
required to implement appropriate actions, the Resettlement Team will inform
the complainant.
(f) Major community concerns and complaints will be addressed during community
meetings and actions will be communicated during these meetings to ensure
transparency of the procedure.
While the majority of individual, group and community grievances will be resolved at the villagelevel, a hierarchy grievance resolution mechanisms has been developed as follows:
(a) Direct resolution at the individual or group level;
(b) Community-level resolution through public meetings;
(c) Resolution through a stakeholder group comprising government, religious and
adat leaders, etc. from within Kabupaten Teluk Bintuni;
(d) Final recourse to legal counsel if the grievance cannot be resolved.
The Project acknowledges the need to recognize all complaints or claims (including claims deriving
from customary law). Further it commits to ensuring that complainants can lodge and resolve
complaints without cost and with the assurance of a timely response to the claim.
The Project will establish and maintain a centralized grievance log and tracking system. This
database will be utilized to: (a) allow the Project to respond to common grievances through radio
and written media; (b) provide a monthly summary of grievances by type and number; and (c)
allow all registered grievances to be tracked and recalled as and when necessary. The Projects

7 Public Consultation and Disclosure

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performance in managing and closing out grievances will be reviewed as part of internal and external
monitoring.
7.11

Public Disclosure
Previous sections provide detailed descriptions of community consultation processes undertaken
with the resettlement and host communities. Both subsequent to or in addition to these consultations
the Project facilitated public awareness and understanding of key Project activities through public
dissemination of relevant information. Tables 7.3 to 7.5 provide key aspects of how information was
disclosed to the communities of Tanah Merah, Saengga and Onar Lama respectively.

Table 7.3 Public Disclosure of Key Resettlement Activities to the Tanah Merah Community

Activity

144

Tanah Merah Consultations and Agreements

Agreement to village
relocation

Community meetings with local government and Project (1999)

1999 Agreements

Land relinqusihment and

acquisition

Compensation for plants

(productive plants, sago)

Community mtgs to agree on need, basis and survey for compensation

Copy of proof of payment

Definition of eligibility

November 2001 Socio-economic Census

March 2002 and August 2002 community meetings

Selection of resettlement site

Community meetings (1999

2002)

Entitlements

Community meetings
August 2002 meeting and agreement
June 2004 community meeting

Allocation of land between

Saengga and Tanah Merah
Baru

Meetings between Saengga and Tanah Merah community

Field visits with key community representatives, survey team,
Department of Lands, and Project

Village layout

Community workshops (JanAug 2002) with final agreement

Village model
TMRC and community site visits during construction

House design

Community workshops (JanAug 2002)

March 2002 and August 2002 community workshops with final
agreement
Model House
TMRC and community site visits during construction

Sacred sites

1999 Agreements on land

Meetings with clan leaders (20032004)

Cemetery access and

maintenance agreement

Draft cemeteries maintenance and access agreement circulated to village

head, clan leaders and TMRC
Copies of agreement

Community meetings with local government and Project (1999)

Minutes of Meetings
Power of Attorney
Copy of 1999 Agreements

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 7.3 Public Disclosure of Key Resettlement Activities to the Tanah Merah Community (continued)

Activity

Tanah Merah Consultations and Agreements

Village move

Community meetings
Cartoon move booklet distributed to all households
Poster of new settlement distributed to all households
Village Facilities Management cartoon booklet distributed to all households
Agricultural Development cartoon booklet distributed to all households
Move Notice detailing schedule for move issued ot all households
Settlement agreement issued to and signed by housholds at time of
relocation

House allocation

Community meetings to decide upon mechanism for and subsequent

implementation of lottery to allocate houses in new settlement
Village house map with numbers and recipient

Allocation of agricultural
lands in Tanah Merah Baru

Community meetings to decide upon mechanism for and allocation of

agriculture and agroforestry lands
Village land maps with plots, plot numbers and recipient given to each
household

Development programs

TMRC, interest group and community meetings

Table 7.4 Public Disclosure of Key Resettlement Activities to the Saengga Community

Activity

Saengga Consultations and Agreements

Land relinquishment and

acquisition

Definition of eligibility

April 2002 Socio-economic Census

August 2002 workshop and agreement

Entitlements

Community meetings
August 2002 workshop and agreement
November 2004 Saengga Scoil Contract workshop

Allocation of land between

Saengga and Tanah Merah
Baru

Meetings between Saengga and Tanah Merah community

Field visits with key community representatives, survey team,
Department of Lands, and Project

Village layout

Community workshops with final agreement

Village model

House design

Community workshops
House Models
Model House

Sacred sites

1999 Agreements on land

Meetings with clan leaders (2003

2004)

House allocation

Community and SRDC meetings

Village house map with numbers and recipient

Development programs

SRDC, interest group and community meetings

Community meetings with local government and Project (1999)

Minutes of Meetings
Power of Attorney
Copy of 1999 Agreements

7 Public Consultation and Disclosure

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Table 7.5 Public Disclosure of Key Resettlement Activities to the Onar Lama Community

Activity

Onar Lama Consultations and Agreements

Land relinquihsment and

acquisition

Definition of eligibility

April 2002 Socio-economic Census

August 2002 community workshop and agreement
Onar Lama community meetings

Entitlements

April 2002 Socio-economic Census

Community meetings

Village layout

Community workshops (2003

2004) with final agreement

Village survey and demarcation

House design

Community workshops (2003

2004)
Model Houses

Sacred sites

1999 Agreements on land

Meetings with clan leaders (2003

2004)

House allocation

Community meetings to decide upon mechanism for and subsequent

implementation of lottery to allocate houses
Village house map with numbers and recipient

Development programs

Interest group and community meetings

Community meetings with local government and Project (1999)

Minutes of Meetings
Power of Attorney
Copy of 1999 Agreements

7.12

Disclosure of the LARAP

7.12.1

Disclosure of the Compliance LARAP

As previously indicated, the Compliance LARAP is included as an appendix to the Project AMDAL.
AMDAL disclosure (and thus disclosure of the Compliance LARAP) occurred at the community,
Papua, and national levels with presentations and distribution of hard copies. Internationally copies
of the AMDAL were made available to interested parties.

7.12.2 Disclosure of the Implementation LARAP

The Resettlement Team has prepared and distributed an Indonesian summary of the
Implementation LARAP to all affected households. The summary presented updated information
about compensation entitlements and provided details of the grievance process and avenues for
making a complaint.
Public disclosure of the Implementation LARAP will also occur by posting of an electronic copy of
both the the Executive Summary and the full document on the websites for the Tangguh Project
and ADB.
7.12.3 Project Consultations
During Project implementation, the Tangguh Project is committed to on-going consultation with a
broad range of stakeholders. The objectives of such consultations are to: (i) seek partnership with
stakeholders; (ii) engage stakeholders in selection of program priorities and program design (i.e.,
goals, objectives, activities, methodology, etc), and; (ii) provide stakeholders with opportunities to
assess the Project.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Project consultations on program design involve a range of stakeholders including government, nongovernmental organizations, civil society organizations and the communities. These consultations
occur on a formal and informal basis and may involve: (i) pre-design consultations to ensure that
the program will reflect priorities and/or needs, experiences and lessons learned of the various
stakeholders; (ii) consultations with target groups/beneficiaries as part of program design and
implementation. Participatory monitoring and evaluation of ISP programs including Resettlement
is also a form of consultation with stakeholders that allows them to provide feedback to the
Project.
In addition to consultations with the targeted beneficiaries of the ISP programs and ISP program
implementation partners, the Project implements general stakeholder meetings with NGOs and
with government. An annual NGO stakeholder meeting is conducted in Papua, providing the forum
for project updates and feedback from the NGO community. Similarly the Project also conducts
regular meetings with government in Kabupaten Teluk Bintuni.
Finally, the Project also facilitates independent assessment of the Project through stakeholder
consultations. In February 2005 BP contracted the Tangguh International Advisory Panel (TIAP)
to provide external challenge, advice and assurance to BP in connection with the Tangguh LNG
Project in Papua, and in particular, given that the Project proceeds to completion, how best it may
achieve its potential as a world-class model for development, taking into account: (i) the effect
on local communities; (ii) the effect on the environment and biodiversity, and (iii) the impact on
political, economic and social conditions in Indonesia generally and in Papua in particular. The
Panels work involves a combination of direct physical assessment of the field conditions and
extensive stakeholder consultations with villagers, non-government and multi-lateral organisations
active in Papua, donors supporting projects in Papua, and government at the district, regency,
provincial and national level within the country. The Panels role is an advisory one and the Panel
has no executive authority or responsibility in relation to the Project. The Panel reports to the BP
Group Chief Executive. Following development of a Project response to the TIAP report, generally
the TIAP presents the results of their assessment to stakeholders and other interest groups in
Indonesia; in London, UK; in Washington, USA, and on request in Australia.
7.13

Conclusions
This chapter has described the Project Resettlement Programs substantial commitment to
community consultations in a wide range of areas, including land acquisition and resettlement,
village layout, house design and allocation as well as various issues associated with the
resettlement process.
The Project commitment to working with the resettlement-affected communities, whether
through village government, the resettlement and development committees, or directly with
the communities, has seen progressive development of the capacity of the communities and
relationships with the Project. The outcomemore capable, demanding partnershas in many
instances involved more community demands and increased Project commitments (human
resources, budget).
Going forward, the Resettlement Program will maintain its commitments to consultation with the
resettlement-affected communities. The Resettlement Team will work with different partners as
the resettled communities strengthen village governance and establish new bodies to manage the
new villages. As the Project moves forward and the resettlement-affected communities become
re-established, there will be a greater focus on ownership and responsibility.

7 Public Consultation and Disclosure

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

8. Village Design and Relocation

8.1

Introduction
This chapter describes the planning and implementation of construction of the new villages of Tanah
Merah Baru and Onar Baru and the re-construction of the host villages of Saengga and Onar. It also
describes the plans for and implementation of the physical transfer of the Tanah Merah community
to the new villages at the completion of construction.
Although village construction and relocation represent only one part of the resettlement plan, it must
be recognized that the construction projects represent the most substantial commitment of Project
resources (i.e., human, financial, etc.) to the plan. From the outset, the Project aimed to develop
new settlements that would allow the resettlement-affected communities to enjoy considerably
higher levels of services and amenities (i.e., water and sanitation, health, education, etc.) with
higher standards of construction and building materials than previously experienced.
Construction of Tanah Merah Baru and Onar Baru was completed in April 2004 and August 2004,
respectively. Relocation of the Tanah Merah community occurred in JuneJuly 2004. Following
relocation, attention has been focused on building the capacity to manage and operate village
infrastructure, services and utilities. Construction of Saengga commenced in October 2004 and
is scheduled to be completed in April 2006. Finally, preparatory steps for the community-based
construction program in Onar Lama have been in process since January 2003. Construction
activities in Onar Lama will commence in the second quarter of 2005 and are expected to be
completed by mid-2006.

8 Village Design and Relocation

149

8.2

The Resettlement of Tanah Merah Village

8.2.1

Tanah Merah Baru

8.2.1.1 Village Design and Layout

The community consultation process in designing the new village layout at Tanah Merah Baru was
conducted in three stages:

Stage 1: Consideration of the underlying socio-cultural and socio-economic

behavior of the Tanah Merah community that underpin the village design;

Stage 2: A planning stage, based on the information collected in Stage 1, which

considered the specifics of the village spatial design, and

Stage 3: Numerous consultations over the village layout itself, leading to final
agreement on the new village layout (and requirements) and formalized in the
setting of a traditional village ceremony.

To ensure that the new village design took account of livelihood patterns and existing family and
community social networks and support systems, research on the socio-cultural and socio-economic
behavior of the Tanah Merah community was undertaken. Research indicated that communal areas
and key public infrastructure should be incorporated into the village design. PT Bita prepared an initial
zoning concept for the new village based on the socio-cultural and socio-economic behavior of the
community (Figure 8.1). This was subsequently used to underpin village designs as the planning
process became more detailed and the specific layout of buildings and facilities was determined.
Figure 8.1 Zoning Concept Utilized in Village Layout and Design

Tanah Merah Baru Village Resettlement

Zoning Concept

Sea
Access 2
Sea
Access 1

Shared
Facilities

Central
Core

Sea
Access 3

Moslem
Cemetery
Catholic
Christian
Cemetery
Public Facilities
Houses
Cemetery
Infrastructure
Community Building &Village Office 51 Households
Houses
Jetty
Co-operative Building & Gallery
Head of Village
Boat Dock
50 Households
Lot for Customary Building
Teachers
Doctor&Nurses
Lot for Post Office/Bank/Phone Booth
Utility Building
Teachers
Elementary School & Kindergarten School Keeper
Power Station
Moslem Priest
School Keeper
Electrical Workshop
Christian Priest
Fuel Farm Shelter
Public
Catholic Priest Facilities
Open Space
Open Space
Babinsa
Volleyball Court
Christian
Soccer Field
Public Facilities
Church
Volleyball Court
Intermediate School
Open Space
Dormitory
Utility Building
Clinic
Greenbelt
Pump Station
Market
Mechanical
Volleyball Court
Workshop

From
Saengga
Village

Stage 2 of the village planning process considered other factors including geographical factors such
BP Berau Ltd.
BITA
3 site. Subsequently, a more detailed
as the accessibility,
topography and ecology ofLampiran
the new
village

 Refer to (a) UNCEN (2000). Socio-Cultural and Economic Aspects of the Communities of Tanah
Merah and Saengga Villages, Babo, Manokwari District; (b) UNCEN (2000). Technical Plan of the
Relocation and Resettlement of Tanah Merah and Saengga Village Communities, Babo, Manokwari.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

spatial pattern was developed, allowing for five alternative village designs, wherein each design
presented different layouts of houses, roads, public facilities, sea access points, etc.
Stage 3 of the village design process involved consultations between the design team and the
Tanah Merah community to discuss the five alternative village layout plans. Such meetings occurred
between March and June 2002. During the first meeting, the five alternative designs were presented
to the community and the community selected their preferred design. At a second meeting, the
design team delivered a detailed to-scale model of the preferred village layout and integrated the
villagers comments and suggestions. Villagers responses were recorded. During the third meeting,
the near-final village layout and requirements were presented to the community. At this time the
community added further requirements including the provision of a total of 135 houses (as opposed
to the agreed 127 houses). The expansion would allow for additional land to construct a future bank,
two village security buildings, as well as some other minor design modifications. Presentation of
the final design occurred in a meeting attended by the community, the Project (PERTAMINA/BP)
and local government, and was followed by a traditional village ceremony to celebrate the closure
on all aspects of village design, layout and requirements.
Figure 8.2 (page 153) shows the design and layout of Tanah Merah Baru. The proposed site for the
new village is a 150 ha parcel of land with dimensions of about 1,000m x 1,500m (seaward length).
The site has a narrow (approximately 200-meter wide) low-lying swampy area aligned parallel to
the shore, with a sharp gradient climbing to higher ground farther back from the coast. The new
village is situated on the higher ground, offering some advantages, including greater protection from
strong winds and severe weather conditions. The position also ensures easy, 24-hour access to the
sea from a jetty constructed at Saengga River, and tidal access from two boat landings along the
beach.
The requirement to replace all physical assets that will be lost when the community moves from
Tanah Merah dictated the extent and type of facilities included in the design of Tanah Merah Baru
village. Major features of village design are summarized below while a complete listing of the facilities
provided in Tanah Merah Baru is provided in Appendix 8.1. Key village design features are:
(a) Village access:
An unsealed, gravel road from Saengga River at the southwest end of the
village to the northeastern end of the new village.
(b) Sea access:
Households will have three routes to access Bintuni Bay. The southwestern end
of the main road leads to a jetty on the Saengga River, while two small boat
jetties provide sea access from two intermediate points in the village.
(c) Housing:
101 family dwellings and 54 prepared lots provided for village expansion.
(d) Community areas:
A central community area includes the residence of the head of village
government, village hall, cooperative office, public community building,
buildings of worship (i.e., churches, mosque) and sporting grounds (i.e., football
and volleyball fields). Other communal buildings (i.e., market place), sporting
grounds and open areas occur elsewhere throughout the village.

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151

(e) Facilities:
(i) Education: An elementary school and kindergarten are located near the

central community area and a junior high school and dormitory are located
near the Saengga River. Surrounding communities including Saengga and
Onar will share the junior high school. Teachers accommodation will adjoin
each respective educational facility.
(ii) Health: A clinic is next to the secondary school and available for use by

Tanah Merah Baru, Saengga and Onar households. Accommodation for a

doctor and nurses is provided within the village.
(f) Services:
(i) Electricity: A hybrid electrical generating system includes engine-

driven generators, photovoltaic solar panels and storage batteries. The

photovoltaic panels will supply power in daylight hours, while the storage
batteries backed up by the generators will supply power at night.
(ii) Water: A reticulated system delivers water to each household and to all

public facilities from four water wells at the northeast end of the village
site.
(iii) Sanitation: Sanitary waste disposal by a twin-pit septic system at each

household and all public facilities.

(iv) Waste Disposal: A solid waste disposal burial pit is situated remotely from

the living areas.

The new village will provide a far higher standard of living for the families relocating from Tanah
Merah. Several aspects of the new village will contribute markedly to public health. Most notable
of these improvements are the sealed water system that will deliver clean (although not potable)
water to each household and proper sanitary waste disposal systems for each household. Both will
help reduce infection and disease common in the existing village.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Figure 8.2

Spatial Layout of Tanah Merah Baru Village

8.2.1.2 House Design

The Project recognized the critical importance of house design. To ensure that a suitable design
was developed, the Project held a series of village consultations to ascertain the most important
characteristics for the new house. The socio-economic census of Tanah Merah indicated that the

8 Village Design and Relocation

153

average house size was 58m2, with a range of 15m2 to 124m2. Consultations with the villagers
raised the possibility of providing different-size houses to the households in accordance with the
size of the original dwelling. However villagers indicated that they preferred that all households
receive houses of equal sizes in the resettlement villages.
Based on these consultations, the Project developed a design concept, and constructed a model
house at the Saengga Base Camp in July 2001 (Figure 8.3). An extensive period of consultation
followed the construction of the model house during which time the villagers visited and spent
time in the house. The Resettlement Team made particular efforts to get feedback from women,
especially on the location and design of the kitchen and bathroom.
The villagers made many comments and suggestions on house design. Some key design issues
were debated, including: (a) villagers preference for a concrete rather than a wooden house, and (b)
villagers demands that a toilet be included in every house rather than in communal utility blocks. It
was agreed that houses would be constructed using wood and a toilet would be provided to every
house. (A previous agreement in 1999 was that running water and electricity would be provided in
each house.)
The Project responded to the majority of inputs received, except those that raised Project concerns
for compromised safety and hygiene. The key changes include the addition of a verandah and an
increase in the size of the kitchen. The net result is that the overall size of the house has increased
from 80m2 to 120m2. Generally no problems were incurred if villagers comments were not accepted.
To close out discussions on house design, every village household was requested to sign a form
saying they willingly accepted the house design.
Figure 8.4 presents a planar drawing of a Tanah Merah Baru house as it is constructed. According
to the wishes of the community, the 101 houses in Tanah Merah Baru are of identical design. Each
provides approximately 82m2 of enclosed space (not including the verandah) on a 500m2 plot of
land. The main section of the house comprises three bedrooms and a common living area. A smaller
detached section includes a large kitchen with dining area. A clothes washing area, bathroom and
toilet facilities (with pour-flush toilet) are in the detached section.
The primary construction material is a high quality tropical hardwood known locally as kayu besi
(literally iron wood). Metal roofs, glass windows and finished interior walls are included. Electric
lights and power points are in each room; total service to each house is 900 watts.
The standards of design and construction materials employed for housing in Tanah Merah Baru far
exceed those evident in housing at Tanah Merah, offering the following advantages:
Increase in average space within house. The average enclosed floor space of

housing will increase from 57m2 in Tanah Merah to 82m2 in Tanah Merah Baru
and Onar Baru. Accordingly, the average space per inhabitant will increase from
9.7m2 to 17.6m2.
Improved level of amenities, most notably the supply of water and sanitary

toilet facilities for each household. The electrical system is also vastly improved
compared with current standards.
Improved longevity and reduced repairs and replacement.
Better protection from the elements.

154

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Figure 8.3

Model Resettlement House Constructed at Saengga Base Camp

Figure 8.4 Planar View of House (as constructed)

8.2.2

Onar Baru
The site for new housing and public facility construction is on the northeast side of Onar River. Except
for marsh areas bordering the river, the land area is mostly flat and dry and has good agricultural
potential. Figure 8.5 shows the layout developed for Onar Baru. Development of the new village will
take place in a five-hectare area. The very simple layout provides good access to the sea and forest

8 Village Design and Relocation

155

Figure 8.5 Spatial Layout of Onar Baru

156

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

8 Village Design and Relocation

157

whilst simultaneously allowing for future expansion. The new construction site is approximately
1km from the existing settlement at Onar, on the southwest side of the river.
The houses in Onar will be identical to the Tanah Merah Baru houses. However, because fewer
families are moving to Onar, the public facilities are limited to a kindergarten/elementary school and
small health clinic (puskesmas pembantu). Electric power generation, reticulated water systems
and sanitary waste disposal systems will be provided. A complete listing of the facilities provided in
Onar Baru is in Appendix 8.2.

8.3

The Host Communities Saengga and Onar

8.3.1

Saengga
In 1999 ,the Project acquired 200 ha of land to facilitate resettlement. Of the 200 ha, 50 ha comprised
a plot of land on which the current village of Saengga is located. Saengga will be re-constructed in
its current location.
Based on the 2002 socio-economic census of the Saengga community and the subsequent
Saengga Workshop, agreement was reached that eligibility to receive housing would be based
upon enumeration in the census. Hence 94 houses will be constructed. The Project will assume
responsibility for securing title to the house and plot.
A similar process of community consultation for village layout and house design occurred in
Saengga. The design and layout of the village has been complicated by an unfavorable topography
(i.e., numerous short ridgelines dropping to sago swamp and mangrove areas). The proposed layout
for the re-constructed Saengga village appears in Figure 8.6 (pages 160-161).
With regard to design, from the outset the Saengga community expressed their preference that the
design of housing and public infrastructure be different from Tanah Merah Baru so as to give the
village a distinct identity. While the Saengga community has chosen different designs (households
were offered a choice between two house designs, which differ marginally in the layout of the
house and orientation of the roofing), these are only marginally different from housing provided in
Tanah Merah Baru and Onar Baru. Public facilities and utilities are essentially the same as in Tanah
Merah Baru (i.e., government buildings, places of worship, elementary school, sporting facilities,
centralized electrical and water systems, etc.). As previously indicated Saengga and Tanah Merah
Baru will share access to the market place, the secondary school and the health clinic. A complete
listing of the facilities provided in Saengga appears in Appendix 8.3.
As Saengga re-construction was occurring in situ, the Saengga construction plans called for a phased
block-by-block approach to construction allowing the population to progressively move out of their
old dwellings into their new houses. While construction has involved felling of fruit trees proximate
to houses (and their compensation in accordance with appropriate legislation), construction has
not otherwise directly impacted livelihoods through loss of resources or disruption of activities.
Accordingly no moving assistance or transitional support will be provided by the Project.
The Resettlement Facilities Supervisor will also work in Saengga to ensure that local capacity to
manage, operate, maintain and repair the public infrastructure and utilities is developed.

158

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

8.3.2

Onar
A community-based appropriate housing project will be implemented for the 28 households (15
Sumuri, 13 resident migrant) resident in Onar. This approach is different from that utilized for
resettlement of the Tanah Merah community and the re-construction of Saengga for numerous
reasons:
Initial consultations with the Tanah Merah community led to agreement that the

entire community would relocate to Tanah Merah Baru. Saengga was identified
as a host village. When BP acquired ARCO, this choice was revisited and 26
households expressed their preference to be relocated to Onar. When the
Project accommodated this preference, it did not, at the time, question whether
Onar Lama would become a host village. Hence at the outset no plans for the
renovation of Onar Lama were developed. Subsequently it became clear that
Onar Lama was a host community and a decision was made to renovate the
village.
By this time, various limitations associated with the design, contracting and

construction process of Tanah Merah Baru had become evident. In response

to these concerns the Project elected to implement a community-based
appropriate housing project. The approach involves: (a) the community
assuming ownership and responsibility for the project; (b) the community
participating in the project, working in teams, learning by doing and in so doing
developing the capacity to replicate housing as necessary; (c) the use of locally
available building materials, and (d) the Project bearing the costs of mentors,
tools and building materials.
The 2002 census of Saengga (and the hamlet of Onar) formed the basis for eligibility. However
when the Onar project commenced there had been changes in the resident population. To reconcile
these changes the Project worked with the local population to achieve a common understanding
and agreement on household entitlement for replacement housing.
Community consultations outlining Project commitments, seeking input and creating ownership of
the village site plan and house design, and securing community labour contributions to the Project
were completed in the second quarter of YR2004. Several village layouts were put forward and the
community discussed these internally prior to agreeing to the final layout. House design is similar
to houses in Tanah Merah Baru, Onar Baru and Saengga. Although houses are somewhat smaller
they incorporate key aspects of healthy housing (i.e., ventilation, chimney in kitchen, water supply,
septic tanks, etc.) that were included in the original designs. Figures 87 and 8.8 (page 162) are
drafts of preferred village layout and house design. Finally the long-term prospects for integration of
Onar Baru and Onar Lama into a single village have steered discussion regarding public facilities into
consideration of the two locations. Facilities such as government buildings, health clinics, a primary
school, etc. will be shared between the two settlements.
The Project has no commitment to provide land title to the Onar Lama households. If the community
wishes to pursue titling of their plots, progress will be contingent upon agreement between the
Agofa clan and residents of Onar Lama.
The Onar Lama site plan involves minimal disruption to the original village. As houses are
constructed, households will be able to relocate from their existing dwellings into their new houses.
Furthermore, the Project does has not directly impacted livelihoods through loss of resources or
disruption of traditional activities although household labour contribution to construction is being
compensated in-kind with food supplies. Accordingly the Project will not provide any transitional
support or moving assistance.

8 Village Design and Relocation

159

Figure 8.6 Spatial Layout of Saengga Village

160

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

8 Village Design and Relocation

161

Finally as the village infrastructure and utilities are based on locally available materials and systems,
and construction involves the local population, there are no concerns regarding the communitys
ability to manage, operate, maintain and repair the infrastructure and utilities.
Figure 8.7 Proposed Layout of Onar Lama

Figure 8.8 House Design for Onar

162

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

8.4

Contracting Procedures and Construction Sequence

Construction of Tanah Merah Baru and Onar Baru were commercially tendered and both national
and international contractors bid for the contract. The contract for construction of Tanah Merah Baru
was awarded to Panata-Thiess Joint Operations (PTJO, a joint operation between an Indonesian
and an Australian construction company) in October 2002. The Onar Baru contract was awarded to
a Papua-based construction firmFirma Irian Djaya (FIRMA) in August 2003. Finally, the contract
for the Saengga Reconstruction Scope of Work was awarded to FIRMA.
Figures 8.9 and 8.10 (pages 164-165) provide construction schedules for Tanah Merah Baru and
Onar Baru. The original schedule for Tanah Merah Baru called for village construction completion
over a nine-month period from December 2002. However, for various reasons (including permitting,
securing legal supplies of timber, etc.) there were substantial delays and construction was only
completed in May 2004.
The re-construction of Saengga commenced in October 2004 after completion of Tanah Merah
Baru and Onar Baru construction and the relocation of the Tanah Merah community. The Saengga
Reconstruction Project is expected to be complete within two years. Since this work will take place
within and proximate to the existing village, re-construction activities must be carefully planned and
executed. Finally, construction activities associated with the appropriate housing project for Onar
will be implemented over a 6-12 month period starting in the first quarter of YR2005.

8.5

Physical Transfer of the Tanah Merah Community

8.5.1

Overview of Relocation Plan

The Resettlement Team developed a Move Plan for the resettlement of the Tanah Merah community
to Tanah Merah Baru and Onar Baru. The plan is provided in Appendix 8.4. The development of the
plan occurred one year in advance of the physical move and early preparations started six months
prior to the move. Inputs and coordination with various Project Units ensured that the plan was robust
while early socialization with the community via group meetings and development communications
media allowed for community input while minimizing any sense of insecurity regarding the loss of
existing physical and social systems.
The Move Plan was based upon the following guidelines: (a) movement of the entire population as
rapidly as possible; (b) rapid resettlement and rapid establishment of daily life in the new location; (c)
minimization of the stress of population displacement in terms of food security, lengthy dislocation
of key aspects of life (e.g., religious services, education, health), and (d) engagement of familiar
community leaders as coordinators/facilitators.
The Plan recognized four sequential steps: (a) Pre-Move Preparation; (b) Physical Relocation; (c)
Post-MovePhase I, and (d) Post-MovePhase II. Pre-Move included social and physical aspects of
preparing for the communitys departure from Tanah Merah. This commenced in January 2003 and
continued until the physical move.
Physical Relocation occurred once Tanah Merah Baru and Onar Baru construction activities were
completed. The entire community of Tanah Merah relocated at the same time, irrespective of final
destination. The physical move was set for June 2004. The physical relocation plan for Tanah Merah
community required that people-movement be completed over a two-week period. The Project
provided the community with a move schedule, packing materials and guidelines, etc. To allow
households to focus on the physical move itself, the Project provided meal-catering services for

8 Village Design and Relocation

163

Figure 8.9 Construction Schedule for Tanah Merah Baru

PANATA THIESS - JO
Engineering, Procurement and Construction of Tanah Merah Baru Village - Papua

6-Dec

13-Dec

20-Dec

27-Dec

3-Jan

10-Jan

17-Jan

24-Jan

31-Jan

7-Feb

14-Feb

21-Feb

28-Feb

7-Mar

14-Mar

21-Mar

28-Mar

4-Apr

11-Apr

18-Apr

25-Apr

2-May

9-May

16-May

23-May

30-May

6-Jun

13-Jun

W3

W4

W5

W6

W7

W8

W9

W10

W11

W12

W13

W14

W15

W16

W17

W18

W19

W20

W21

W22

W23

W24

W25

W26

W27

W28

W29

W30

W31

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.103%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.030%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.144%

0.064%

0.064%

0.064%

0.064%

0.064%

0.064%

0.064%

0.064%

0.064%

0.0

0.081%

0.081%

0.081%

0.081%

0.081%

0.081%

0.081%

0.081%

0.081%

3.4 Earthworks

LS

4,207,239

6.59%

6.59%

0.0

0.366%

0.366%

0.366%

0.366%

3.5 Construction Camp

LS

6,603,210

10.34%

10.34%

0.313%

0.313%

0.3

4.1 Construction Houses

LS

18,495,000

28.96%

17.55%

4.2 Other Houses

LS

3,657,501

5.73%

0.00%

1.609%

1.609%

1.6

4.3 Public Facility Buildings

LS

12,123,954

18.98%

8.02%

4.4 Landscaping Works

LS

211,878

0.33%

0.00%

4.5 Public Infrastructures & Utilities

LS

10,042,632

15.72%

6.69%

4.6 Villange relocation Assistance

LS

144,180

0.23%

0.00%

80.00%

0.313%

89%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.366%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.313%

0.804%

0.804%

1.609%

1.609%

1.609%

1.609%

1.4 HOUSE AND FACILITY BUILDINGS

63%

0.034%

0.034%

0.034%

0.034%

0.034%

0.034%

0.034%

0.034%

0.034%

0.058%

0.058%

0.058%

0.058%

0.058%

0.058%

0.058%

0.058%

0.058%

69,172,873
$ 7,685,874.78

Rp.

18,338,490

65%

1.055%

1.055%

1.055%

1.0

0.437%

0.874%

0.874%

0.874%

0.874%

0.874%

0.874%

0.8

0.058%

0.058%

0.058%

4%
3%
2%

W11

W12

W13

9.6%

W14

10.3%

0.058%

0.058%

0.058%

0.058%

W16

W17

39%
30%
25%
21%

21.3%

18%

16.1%

16.5%

17.0%

15.6%

W23

W24

W25

W26

W27

W28

14.1%

14.6%

W20

W21

W22

12.5%

12.5%

W18

W19

22.3%

23.1

19.4%

15.2%

13.6%

12.0%

0.0

35%

37%
29%

22%
18%

W15

11.5%

11%

3% 2%
2%

W6

9.0%
5%
4%

2% 1%
2%

W5

8.3%
4% 10%
3%

1% 1%
1%

1%
1%

W4

0%

0%

0%
0%

0%

4%

W3

0%
0%

0%
0%

W2

0%
0%
2%

W1

0%

W10

1.0%

0%

W9

0.7%

7.6%

11.0%

0.058%

W29

W30

W31

W3

0.000%

0.064%

0.098%

0.158%

0.342%

0.342%

1.239%

0.401%

3.253%

1.046%

0.271%

0.406%

0.681%

0.673%

0.673%

0.673%

0.673%

0.488%

0.543%

0.505%

0.012%

1.020%

0.510%

0.539%

0.637%

0.338%

0.500%

0.388%

0.502%

2.438%

1.881%

0.956%

0.

CUMULATIVE PLAN PROG.

0.000%

0.064%

0.162%

0.320%

0.662%

1.004%

2.243%

2.644%

5.897%

6.943%

7.215%

7.621%

8.302%

8.975%

9.648%

10.321%

10.993%

11.481%

12.024%

12.530%

12.541%

13.562%

14.072%

14.611%

15.248%

15.587%

16.087%

16.475%

16.977%

19.414%

21.296%

22.251%

23.

ACTUAL PROGRESS

0.000%

0.064%

0.098%

0.158%

0.342%

0.342%

1.239%

0.401%

3.253%

1.046%

0.271%

0.406%

0.681%

0.673%

0.673%

0.673%

0.673%

0.488%

0.543%

0.505%

0.012%

1.020%

0.510%

0.539%

0.637%

0.338%

0.500%

0.388%

0.502%

2.438%

1.881%

0.956%

0.

CUMULATIVE PROGRESS

12.530%

12.541%

13.562%

14.072%

14.611%

15.248%

15.587%

16.087%

16.475%

16.977%

19.414%

21.296%

22.251%

23.

651,798

325,734

344,303

407,002

216,115

319,367

248,102

320,338 1,557,065 1,201,512

610,385

55

WEEKLY PLAN PROGRESS

26.51%

W8

0.3%

0%
0%
1%

Rp.

W7

0.2%

W0

US$

2.6%

0.1%
0%

0.00%

7.2%

6.9%

2.2%

0.0%
0%

SUB TOTAL CHANGE ORDER VALUE

0%
0%
3%

7%

5.9%

3%
6%
2%

10.00%

TOTAL CONTRACT VALUE

0.437%

26%

33%
28%
14%

15%
10%

CHANGE ORDER

10%

20.00%

15%

46.42%
25.30%
94.15%

8%

46.42%
26.91%
100.00%

11%

2,460,932
1,426,480
5,301,736

7%

MNTE

MNTE

24%

5.4 Delays 7 Weeks to Mobilization

30.00%

6% 8%

21.14%

19%

3.44%

6%
5%

182,611

37%

37%

1.30%

33%

0.00%

1.30%

5.5 Trees Cutting on selectively logged area

SUB TOTAL PROVISIONAL ITEMS

II

21.94%

68,733

28%

MNTE

1,162,980

1.055%

52%

58%

0.034%
0.058%

24%

LS

1.055%

48%

0.034%
0.058%

19%

5.3 Miscelleneous Items (Provisional)

House

1.055%

41%

0.034%
0.058%

40.00%

5.2 Prov. Sum#2 - Well Test Boreholes & Pump Test

69%

69%
63%
58%

0.034%
0.058%

52%

0.034%
0.058%

1.5 PROVISIONAL SUM

5.1 Prov. Sum#1 - House Panel Fabrication

0.527%

15%

1.79%
61.75%

0.527%

33%

1.79%
100.00%

0.034%
0.058%

14%

1,142,649
63,871,137

0.034%
0.058%

52%

LS

SUB TOTAL LUMP SUM PORTION

0.034%

13%

4.9 Demobilization

0.034%

50.00%

48%

0.61%
1.97%

12%

0.61%
1.97%

42%

391,896
1,259,631

PIONEERING P

60.00%

48%

LS
LS

PRECONSTRUCTION PERIOD

42%

4.7 Permits
4.8 HSE Requirement

70.00%

0.0

75%

0.06%
0.98%

86%

0.64%
0.98%

83%

408,114
623,880

79%

LS
LS

75%

3.2 Demolition Works

3.3 Dredging

90.00%

94%

3.46%

48%

3.46%

92%

2,208,969

3.1 Survey Work

44%

LS

1.3 PIONEERING FACILITIES

89%

1.21%

61%

2.47%

1.21%

99%

2.47%

771,471

86%

1,578,933

57%

LS
LS

92%

1.1 MOBILIZATION
1.2 ENGINEERING

20

100%

29-Nov

W2

100%

22-Nov

W1

100%

15-Nov

W0

97%

8-Nov

100.00%

83%

96%

PROGRESS

79%

Weight

94%

Value
(000 Rp.)

44%

Unit

69%

Revised Based line

DESCRIPTION

Id

0.000%

0.064%

0.162%

0.320%

0.662%

1.004%

2.243%

2.644%

5.897%

6.943%

7.215%

7.621%

8.302%

8.975%

9.648%

10.321%

10.993%

11.481%

12.024%

WEEKLY PROJECT ED REVENUE (Rp. 000)

40,916

62,635

100,907

218,399

218,423

791,372

256,117 2,077,733

668,303

173,248

259,605

434,923

429,752

429,752

429,752

429,752

311,602

346,957

MONTHLY PROJECTED REVENUE (Rp. 000)

103,550.756

1,585,218.935

3,178,889.325

1,724,179.515

1,410,973.202

1,736,403.497

2,660,987.661

3,709,328.0

COMMULATIVE PROJECTED REVENUE (Rp. 000)

103,550.756

1,688,769.691

4,867,659.016

6,591,838.532

8,002,811.734

9,739,215.231

12,400,202.892

16,109,530.9

TOTAL PROGRESS UP TO THIS REPORT PERIOD US$ $ 2,037,610.02

FREEZING DATE

SCHEDULE PERFORMANCE INDEX - SPI

1.00

LEGEND

1.00

1.00

1.00

1.00

1.00

1.00

Original Based Line

1.00

1.00

1.00

1.00

1.00

Rev-7W postponed Mob

1.00

322,662

1.00

7,567

1.00

1.00

1.00

Rev1- Start 1st April

1.00

1.00

1.00

1.00

Rev2- Start 1st May

1.00

1.00

1.00

1.00

1.00

Actual Progress

Figure 8.10 Construction Schedule for Onar Baru

Thiess Contractors Indonesia

164

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Rev3-Sep P

19-Sep

26-Sep

3-Oct

10-Oct

17-Oct

24-Oct

31-Oct

7-Nov

14-Nov

21-Nov

28-Nov

5-Dec

12-Dec

19-Dec

26-Dec

2-Jan

9-Jan

16-Jan

23-Jan

30-Jan

6-Feb

13-Feb

20-Feb

27-Feb

5-Mar

12-Mar

19-Mar

26-Mar

2-Apr

9-Apr

16-Apr

23-Apr

30-Apr

7-May

14-May

21-May

W38

W39

W40

W41

W42

W43

W44

W45

W46

W47

W48

W49

W50

W51

W52

W53

W54

W55

W56

W57

W58

W59

W60

W61

W62

W63

W64

W65

W66

W67

W68

W69

W70

W71

W72

W73

W74

W75

W76

W77

W78

W79

W80

030%

0.030%

0.030%

0.030%

0.030%

081%

0.081%

0.081%

313%

0.313%

0.313%

1.609%

1.609%

0.030%

0.015%

0.015%

0.313%

0.313%

0.313%

0.313%

88%

0.030%

83%
78%
69%

74%

0.313%

0.313%

0.313%

0.313%

0.313%

1.609%

1.609%

1.609%

1.609%

1.609%

1.609%

1.609%

0.804%

0.804%

0.716%

0.716%

0.716%

0.716%

0.716%

0.716%

0.358%

0.358%

0.716%
1.055%

1.055%

1.055%

1.055%

1.055%

1.055%

1.055%

1.055%

0.003%

0.003%

0.003%

0.003%

0.003%

0.003%

0.003%

0.003%

0.874%

0.874%

0.874%

0.874%

0.874%

0.874%

0.874%

0.874%

0.874%

0.874%

60%

1.055%
0.003%

56%

1.055%
0.003%

59.9%

52%

874%

0.030%

64%

PERIOD

055%

0.030%

87%
79%

0.313%

72%

76%

83%

064%

609%

94%

0.030%

90%

0.030%

058%

100%

12-Sep

W37

100%
99%

5-Sep

W36

100%
100%

29-Aug

W35

100%
97%

22-Aug

W34

99%

15-Aug

W33

100%

8-Aug

W32

93%

1-Aug

97%

25-Jul

100%

18-Jul

99%

11-Jul

98%

4-Jul

96%

27-Jun

97%

CONSTRUCTION WEEKS

0-Jun

0.075%

0.003%

0.003%
55.9%

56.7%

57.5%

54.6%
0.075%

53.2%

0.075%

51.4%
50.2%
48.7%
47.2%

0.058%

0.058%

0.058%

0.058%

0.058%

0.058%

39.0%

39.4%

W37

W38

0.058%

0.058%

40.7%

39.9%

0.058%

0.058%

0.447% 42.2%
0.447%
41.3%

0.058%

42.9%
0.447%

0.058% 45.5%
44.0%

46.1%

0.447%

28.7%
27.6%
26.5%
25.2%

1%

32

W33

W34

W35

W36

W39

W40

W41

W42

W43

W44

W45

W46

W47

W48

W49

W50

W51

W52

W53

W54

W55

W56

W57

W58

W59

W60

W61

W62

W63

W64

W65

W66

W67

W68

W69

W70

W71

W72

W73

W74

W75

W76

W77

W78

W79

W80

CONSTRUCTION WEEK

.863%

2.108%

1.264%

1.096%

1.130%

10.273%

0.427%

0.487%

0.774%

0.615%

0.960%

0.659%

1.082%

1.520%

0.599%

1.124%

1.503%

1.488%

1.200%

1.787%

1.362%

1.336%

0.793%

0.830%

1.959%

2.182%

2.383%

1.867%

2.519%

2.543%

2.590%

2.346%

2.380%

2.613%

2.183%

2.271%

2.207%

2.044%

2.044%

1.857%

1.611%

1.523%

1.480%

0.654%

0.654%

0.247%

0.106%

.114%

25.222%

26.486%

27.581%

28.712%

38.985%

39.411%

39.898%

40.672%

41.287%

42.247%

42.906%

43.988%

45.508%

46.106%

47.230%

48.733%

50.221%

51.420%

53.208%

54.570%

55.906%

56.699%

57.529%

59.488%

61.670%

64.053%

65.920%

68.439%

70.981%

73.571%

75.917%

78.297%

80.910%

83.093%

85.363%

87.570%

89.614%

91.658%

93.515%

95.125%

96.648%

98.128%

98.782%

99.436%

99.683%

99.789%

.863%

2.108%

1.264%

1.096%

1.130%

10.273%

0.427%

0.487%

0.774%

0.615%

0.960%

0.659%

1.082%

1.520%

0.599%

1.124%

1.503%

1.488%

1.200%

1.787%

1.362%

1.336%

0.793%

0.830%

2.394%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.000%

0.106%

0.000%

.114%

25.222%

26.486%

27.581%

28.712%

38.985%

39.411%

39.898%

40.672%

41.287%

42.247%

42.906%

43.988%

45.508%

46.106%

47.230%

48.733%

50.221%

51.420%

53.208%

54.570%

55.906%

56.699%

57.529%

59.923%

51,140 1,346,291

807,091

699,912

721,956 6,561,390

272,438

310,976

494,384

392,648

613,408

420,937

690,797

970,780

382,290

717,748

960,040

950,260

766,159 1,141,677

870,054

853,517

506,373

530,010 1,251,255 1,393,492 1,522,240 1,192,449 1,608,704 1,624,057 1,654,032 1,498,261 1,520,334 1,668,763 1,394,164 1,450,327 1,409,581 1,305,394 1,305,394 1,186,071 1,028,810

972,480

945,475

417,734

417,734

157,833

67,392

67,392

67,392

059

8,790,349.004

2,083,854.382

2,464,803.286

4,535,883.950

2,759,953.893

5,359,436.228

7,905,388.332

5,922,836.577

4,825,668.350

2,911,256.899

202,175.147

951

24,899,879.954

26,983,734.337

29,448,537.623

33,984,421.573

36,744,375.466

42,103,811.694

50,009,200.026

55,932,036.603

60,757,704.953

63,668,961.852

63,871,136.999

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.01

0.106%

99.894% 100.000%

Forecast

Page 1 of 1

Data Date : S-Curve PE Dec-03.xls

Print Date: 17-12-03 1:37 PM

8 Village Design and Relocation

165

households immediately before and after the move. Families either walked or were provided with
marine transport (for the 26 households relocating to Onar and for the young, elderly and infirm
relocating to Tanah Merah Baru). Household goods were transferred to the new villages aboard
Landing Craft Transport (LCTs). Following relocation of the communities, households were allowed
to return to Tanah Merah for another two-week period to salvage building materials from previous
residences. LCTs were made available to facilitate transfer of these items.
Post-MovePhase I is a three to six month period of settling in and adapting to circumstances at
the new sites. Various aspects of this phase (e.g., use, ownership, management, maintenance and
repair of facilities and services) are more fully described in Chapter 10. Post-MovePhase II refers
to on-going implementation of post-relocation livelihood reconstruction plans as outlined in this
document, but especially the income restoration/improvement and social re-articulation programs.
These programs are outlined in Chapters 9 and 10, respectively.
8.5.2

Implementation of Village Move

In April 2004, the Resettlement Team nominated the period between June 27th and July 8 th 2004 as
the period for implementation of the village move. Defining and announcing specific dates for the
village move facilitated the completion of move plans and allowed other stakeholders (other Project
Units and the community) to focus on required activities. Furthermore, announcement of the dates
acted as a catalyst setting in motion a sequence of events that culminated in the relocation of the
village community.
It soon became clear that PTJO would complete village construction ahead of schedule and commence
demobilization. Negotiations between PTJO and the Project allowed for such demobilization with
implications for PTJO resource commitments to relocation and on-going camp management. At
the same time, FIRMA was making slow progress in Onar Baru and activities were focused on
completion of housing so that the move would not be delayed. Nonetheless at this point it became
clear that households moving to Tanah Merah Baru would be the first to relocate, thereby providing
FIRMA with more time to complete construction.
The Resettlement Team continued preparations for the village move, using the plan provided in
the Appendix as the basis for work. Attention was focused on pre-move preparations at the village
level, this encompassing:
(a) Development of physical infrastructure to facilitate the transport and loading of
household goods (i.e., slides to households located in RKI and RKII and access
to the village and jetties for LCTs).
(b) Planning, scheduling and facilitating the implementation of ceremonies to
mark the departure from Tanah Merah. This included adat, Christian and
Muslim ceremonies that marked departure from the village and allowed for the
demolition of the places of worship.

166

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

(c) Facilitation of introductory visits by local government representatives and a

panel of independent observers to the site.
During this period, elements within the community attempted to raise doubts regarding the rights
of migrant families long resident in the village to receive new houses, this reflecting pressure by
non-resident Sumuri families to receive housing. Given the existence of established agreements,
the Resettlement Team issued a letter to the entire community defining household rights to housing
and simultaneously met with long-term resident migrant families to reassure them of the Projects
commitment to them.
As the inevitability of the move became increasingly apparent, selected community members called
for a final meeting between the Project and the community to resolve claims raised during the
April Musyawarah Besar (cultural meeting). The mutually agreed upon meeting schedule was twice
delayed by the non-attendance and insobriety of the village head. Nonetheless, when the meeting
eventually occurred, community members asked for clarification of various Project resettlement
commitments (e.g., food basket, access road to lands east of the plant, etc.) while selected
members pressed for additional compensation/claims outside of agreements already established
with the Project. For some, there was clearly a feeling that this was the final opportunity to extract
further benefits from the Project.
The Resettlement Team conducted several internal coordination meetings to clarify and map
individual team members responsibilities. During these meetings, role plays and various what-if
scenarios were discussed. In addition, a move handbook outlining emergency procedures, listing
household move schedules, food allocation, etc., was developed and shared with the group.
The start of the move involved distribution of meals and collection of household goods from those
households scheduled to move first. In many ways, this day served as a practical demonstration
of how implementation of the plans would unfold. It rapidly became clear that, barring adverse
weather conditions or problems with LCTs, collection and loading of household goods could occur
more rapidly than anticipated (i.e., within one day rather than two). Furthermore, it was also evident
that catering requirements would stretch Universal Sodexho resources and, as a consequence,
regular Resettlement field staff were assigned to Universal to provide assistance.
Two social issues with the potential to significantly affect the move also became evident. First,
the Saengga and Tanah Merah communities had organized an upacara adat (cultural ceremony) to
welcome the Tanah Merah households to Tanah Merah Baru. On the evening before the ceremony
it became evident that selected Simuna clan members were endeavouring to utilize the event as a
vehicle for further rent extraction from the Project, claiming an additional IDR100 million to allow
the Tanah Merah households to relocate to their new village. Intensive all-night discussions ensued
with the Project stating that it would follow original agreements, that the adat welcome was an
issue between the two communities and did not involve the Project, and that the move would
occur with or without the participation and blessing of the Simuna clan. In the end, monetary
contributions (IDR15 million) from the regency and district governments provided an exit for the
impasse and the ceremony proceeded the next morning. Second, at the onset of the move several

 Government representatives from Kabupaten Teluk Bintuni were invited to site on two occasions
(i.e., May 2004 and during the village relocation in June-July 2004).
 A panel of external observers was contracted to review and monitor Project relocation plans and their
implementation. The team comprised three well-respected Papuans (drawn from local Universities
and NGOs). A preliminary field visit occurred in May-June 2004 and led to a report on Project
preparations for the village move. The team returned to site during relocation of the Tanah Merah
community and subsequently prepared a report describing implementation of village relocation.

8 Village Design and Relocation

167

Sumuri households from Tofoi decided that they were entitled to receive houses allocated to longterm resident migrant Tanah Merah households and household representatives occupied the front
terraces of these houses. While this was in effect an act of trespass, the Resettlement Team
resolved the issue through consultation.
Despite potential social problems, LCT breakdowns and some inclement weather, the move was
completed ahead of schedule with the Onar Baru move being completed over a two-day period on
3 and 4 July. All community members were moved safely and without incident. Household goods
were, for the most part, transported and delivered with minimal damage and loss. Households
settled rapidly and gratefully into their new premises, responding positively to the new and improved
facilities.
Project commitments to provision of a food basket were implemented prior to the move with a
months supply of dry rations being placed in each house. These will continue to be provided for
12 months. Twice weekly provision of fresh goods (meat, vegetables, fruit) commenced one week
after completion of the move and will be continued for a six-month period.
Immediately after the move households were encouraged to return to Tanah Merah to dismantle
and retain any construction materials that they wished to take to their new residence. This activity
extended beyond the two-week period planned for its completion. While the Project facilitated
the transport of the majority of construction materials, individual households continued to collect
materials for some time after the LCTs departed the site. Final demolition of the remaining structures
and clearing of the site occurred by chainsaw winches and a bulldozer in August 2004.
A completion ceremony attended by Project management and government representatives was
implemented on 17 July 2004, two weeks after the completion of the move.

8.6

Conclusion
The Project is committed to ensuring that families relocating from Tanah Merah are satisfied and
secure in their new villages. The quality of the houses, public facilities and public services are greatly
improved over those of the existing village. Assets and infrastructure provided by the Resettlement
Plan will significantly improve living conditions. Similarly, the host communities will also benefit
from improved standards of living.

168

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

9. Livelihood Restoration and Development

9.1

Introduction
The World Bank Impoverishment Risk and Reconstruction (IRR) model provides a framework
allowing identification of: (a) the main poverty risks involved in the physical and economic
displacement and relocation of Tanah Merah community, and (b) strategies to mitigate and reverse
these risks and ultimately facilitate development of livelihoods.
Chapter 5 provides an overview of the resettlement-affected villages. Section 5.3 describes the
socio-economic status of the households in Tanah Merah and the host villages of Saengga and Onar.
Section 5.4 describes natural resource-based livelihood activities (i.e., agriculture and fisheries)
that together form the main components of Tanah Merah communitys livelihoods. Together this
information presents a set of parameters that guides the restoration and development of natural
resource-based livelihoods in Tanah Merah Baru, Onar Baru and the host communities.
Chapter 6 outlines the World Bank Impoverishment Risk and Reconstruction (IRR) model and its
application to the resettlement of Tanah Merah to Tanah Merah Baru and Onar Baru and to the host
villages of Saengga and Onar. The chapter describes how the IRR risks of landlessness, loss of
access to common property resources, food insecurity and marginalization (and hence the overall
risk of impoverishment) are related to resettlement impacts on natural resource-based livelihood
activities. The chapter also sets out the restoration and development strategies to be used to mitigate
these risks.
This chapter sets out the income restoration and development programs for the resettlementaffected communities. Livelihood reconstruction will rely on productivity (and thus income) increases
in traditional livelihood activities (agriculture, fisheries) and/or through diversification of incomeearning opportunities (e.g., through small business development, through vocational training, etc).
Following an initial focus on restoration of the productive basis (after relocation) of the traditional
livelihood activities, on-going livelihood reconstruction for the resettlement-affected communities
will address: (a) agriculture; (b) fisheries; (c) savings/loans; (d) small enterprise development; (e)
vocational training, and (f) wage employment. A plan for resettlement with development initiatives
in each of these sectors is described. Implementation plans for the period after physical relocation of

9 Livelihood Restoration and Development

169

Tanah Merah are described in Chapter 11. A final section presents income models predicting income
flows for the decade following resettlement.
Figure 9.1 presents an overall schedule for implementation of livelihood and income reconstruction
programs. The description of sectoral development program plans includes a summary of activities
completed to date (i.e., during 20022004).
9.2

A Theoretical Framework for the Reconstruction of Resettlers Livelihoods

Figure 9.2 presents an income curve covering the period before Project entry, through displacement
and onto reconstruction of livelihoods. Without Project entry and associated impacts, the village
experiences slow growth in income over time. When the village is relocated, households experience
significant disruption to normal livelihood activities and, as a result, a drop in income is observed
(Point I on graph). The size of the drop may be mitigated by several factors including: (a) premove preparation of the population including development interventions; (b) pre-move preparation
of resettlement villages (e.g., establishment and development of agriculture prior to move), and (c)
provision of transitional relocation assistance (e.g., food baskets, move allowances to facilitate reestablishment of livelihood activities). After relocation the population experiences a period of zero
or at best slow growth as households adjust to their new circumstances and livelihood activities
are re-established (Point II on graph). The duration of this period is a key variable in determining
the income losses associated with resettlement and should thus be minimized. Thereafter, with or

Figure 9.1 Implementation Schedule of Livelihood and Income Restoration Programs

Year
Activity

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

LIVELIHOOD AND INCOME RECONSTRUCTION

COMMUNITY DEVELOPMENT AGRICULTURE
Supporting Studies and Activities

Physical Dev of Garden Areas

Capacity-building

Material Assistance

COMMUNITY DEVELOPMENT - FISHERIES ACCESS AND DEVELOPMENT

Supporting Studies and Activities

Fisheries Access

i. Boats/Motors

ii. Fishing Camp

Market Development

Capacity-Building

COMMUNITY DEVELOPMENT - SAVINGS/LOANS AND SED

Savings/Loan Program

SED Program

COMMUNITY DEVELOPMENT - VOCATIONAL TRAINING AND EMPLOYMENT

170

Resettlement Const Employment

LNG Construction Employment

Vocational Training

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Figure 9.2Income Curve from Displacement to Reconstruction

en
opm
evel
d
h
it
nt w
C
eme

ttl

Income

rese

III

I
II

Time
(Adapted from M. M. Cernea, (1995) Understanding and Preventing Impoverishment from
Displacement. Reflections on the State of Knowledge. Journal of Refugee Studies, Vol. 8. No. 3.)

without Project assistance, the resettled households engage in income restoration and development
activities (Point III on graph).
With Option A, the village resumes income growth at the same rate as experienced prior to relocation
and, as such, experiences an absolute loss of income because they do not rejoin or pass the original
income growth curve.
With Option B, the village experiences a period of more rapid income growth that allows them to
catch up to income growth curve that existed prior to Project entry. They subsequently follow the
original income growth curve.
Finally, with Option C, the village experiences an enhanced rate of income growth that allows them to
bypass the original income growth curve thus achieving higher incomes. These higher income levels
are associated with a new income growth curve that may subsequently (a) level out and continue to
grow at the same rate as was achieved prior to Project entry, or (b) continue to grow more rapidly.
Option C represents resettlement with development, irrespective of the final rate of income growth
achieved. The biophysical environment and the socio-economic characteristics of the resettlement
villages (i.e., the potential for restoration), and the development assistance provided for accelerating
the pace of re-establishment and development are key determinants of the duration of the transitional
phase (II), the rate at which livelihood reconstruction can take place (III), and the long-term income
growth rates that can be sustained.
For the resettlement-affected communities in the Tangguh Project, physical relocation is only one of
several factors that have impacted upon their incomes. Figure 9.3 presents a predicted income curve
trend line for the resettlement-affected villages for the period 20002009. As described in Section
5.4.3, Project entry prior to resettlement led to wage employment and increases in income, with a
peak in incomes being associated with participation on construction projects for the resettlementaffected villages. Upon completion of construction, retrenchment of employees resulted in substantial
(although only short-term) drops in income with this being exacerbated by physical relocation of the
community.

9 Livelihood Restoration and Development

171

Figure 9.3 Past and Predicted Income Curve for Resettlement-Affected Villages

Income

Early employment and

Resettlement Village
Construction

LNG Plant
Construction

Saengga and
early LNG Plant
Construction

2000

2002

2004

2006

2008

2010

2012

Year

The specific impact of relocation has been mitigated through the provision of food baskets and some
(albeit limited) pre-move development of agricultural gardens. In the period immediately following
relocation, households engaged in restoration activities in traditional natural resource-based livelihood
activities (i.e., agriculture and fisheries). With the start of the Saengga Renovation Project and new
wage employment opportunities, incomes increased yet again with this trend being accelerated as
the LNG plant construction activities started. Maximum incomes are predicted at the time of peak
LNG-related employment after which these levels begin to drop. A post-LNG construction scenario
has the resettlement-affected populations progressing on a new income growth curve with higher
average incomes than achieved prior to Project entry.
The analysis yields the following conclusions relevant to livelihood reconstruction activities in the
resettlement-affected villages:
Pre-displacement measures of household income as conducted in the 2001

census are not exact measures of pre-Project entry household income levels,
as many households were already participating in the incipient Project wage
economy at this time.
Wage employment is the most significant factor affecting the households

incomes in the period 20022008.

The goal of resettlement with development is to achieve sustainable incomes

over and above pre-displacement levels. However, in light of Figure 9.3

above, mitigating the drop in wage income to be expected at the end of the
construction period for all villages (including resettlement-affected villages)
needs to be an additional Project goal.

172

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

9.3

Restoration of Natural Resource-based Livelihoods and Income Sources

This section outlines the plans to restore and develop the natural resource-based livelihood activities
(i.e., agroforestry and fisheries) of the resettlement-affected communities. A common approach
is utilized to plan and design the restoration and development of both sectors. Immediately after
resettlement, priority will be given to restore access to productive resources and re-establish basic
levels of production in the resettled communities. Thereafter the longer-term development of these
livelihood activities is considered. While capacity-building to ensure sustainable resource utilization
(commensurate with changes in their accessibility, availability and quality post-resettlement) is a
basic building block for all activities it assumes greater importance after basic production systems
have been re-established. Specifically, restoration, development and additional capacity-building
cannot be separated chronologically. Capacity-building (through training and extension) that increases
household awareness, know-how and capacity to utilize natural resources in a sustainable manner
and to improve production and income streams from natural resource-based livelihood activities is an
essential and continuous activity implemented throughout the lifetime of the sectoral programs.

9.3.1

Agroforestry Development Program

9.3.1.1 Program Description

The overall goal of the agroforestry development program for Tanah Merah Baru and Onar Baru is to
establish agricultural systems at the resettlement villages and ensure that agricultural production and
income derived from these systems is equal to or above pre-displacement levels and is sustainable.
The program will focus on Tanah Merah households being resettled in Tanah Merah Baru and Onar
Baru because: (a) the Tanah Merah households will experience complete loss of their agricultural and
forest gardens, (b) fieldwork and the 2002 census demonstrate that agriculture was not a significant
livelihood activity in the host villages of Saengga and Onar, and (c) resettlement will not significantly
impact the host villages limited agricultural activities.
Hence the host villages will primarily benefit from Project distribution of agricultural inputs with
capacity-building in agriculture occurring through the trickle-down effects of program implementation
in Tanah Merah Baru and Onar Baru. After construction is completed the resettlement-affected
villages will join the Projects Community Assistance Program. This program provides funds to the
village communities and allows them to select their own development priorities. Hence if the host
villages choose agriculture as a priority, they do have the ability to secure the services of agricultural
extension agents.
For the resettled communities the agriculture development program is being implemented in three
phases during 20022008:
Phase I Planning and Preparation (YR20022003)
(a) Development of agroforestry development plans;
(b) Pre-move capacity-building;
(c) Resolution of inter-village land access and use;
(d) Nursery establishment and operation.

9 Livelihood Restoration and Development

173

Phase II Re-establishment of Agroforestry Systems (YR20042005)

(a) Physical development of vegetable garden and agroforestry areas (including
clearing, establishment of garden areas, placing topsoil, developing of soil
conservation measures, e.g., terracing);
(b) Land allocation;
(c) Material assistance;
(d) Building awareness, knowledge and capacity to develop and operate intensified
agricultural systems;

For households in Tanah Merah Baru (and to a lesser extent in Onar Baru)
this Phase will culminate in the establishment and on-going management of
vegetable and agroforesty gardens.

Phase III Sustainability of Production and the Development of Agroforestry

Systems (YR20062008)
(a) Capacity-building and problem-solving in intensive vegetable and field crop
production systems, i.e., soil fertility management, pest control and weed
control;
(b) Promotion of longer-term agroforestry development initiatives (i.e., diversification
of the agricultural system through establishment of fruit tree and cash crops
gardens, livestock, community forestry, etc.).
9.3.1.2 Component Activity Description
Phase I

Planning and Preparation (YR20022003)
(a) Planning: The design of the agroforestry program for Tanah Merah Baru and
Onar Baru combined the results of formal studies, fieldwork by Tangguh Project
development specialists, and community consultations.
(b) Pre-move preparatory capacity-building: Delays in the completion of construction
of the new villages led to delays in physical relocation. In the interim, the Project
has invested in capacity-building in agriculture, particularly vegetable and field
crop production while simultaneously building awareness of the changes in
the access, availability and quality of agricultural resources associated with
resettlement to the new locations.
(c) Resolution of inter-village land access and use: The 1999 land agreements for
Tanah Merah Baru specify the basis for land allocation between Tanah Merah
Baru and the host village, Saengga. Specifically for the 200 ha secured by the
Project, land allocation was specified as follows (a) 50 ha west of the Saengga
River and under the current Saengga village to be used for renovation of
Saengga village; (b) of the 150 ha east of Saengga River, 50 ha is to be used for
construction of Tanah Merah Baru, while the remaining 100 ha is to be divided
equally between the two villages for use in agriculture. This division of land is to
be completed prior to the relocation of the Tanah Merah community.
(d) Nursery establishment and operation: A nursery to support agricultural
restoration and development activities will be established in Tanah Merah Baru.
The nursery will produce: (i) fruit trees; (ii) a range of perennial food crops and

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(iii) trees and ornamental plants for landscaping of homes and public facilities. All
plants will be distributed to households after relocation from Tanah Merah.
Phase II

Re-establishment of Agroforestry Systems (YR20042005)
(a) Physical development of garden areas: Given constraints in access and resource
quantity and quality in Tanah Merah Baru, the land has been classified suitable
for two forms of agricultural development flatter areas with deeper soils will
be allocated for intensive vegetable and field crop development while sloping
areas will be allocated for agroforesty gardens. Steps for the development of
either land type include identification and survey for division and allocation to
households. All lands will be divided to match the total number of house plots
(i.e., 101 houses and 55 empty plots) thereby ensuring future households have
access to land.

In Onar Baru differences in the circumstances associated with land acquisition

allow the resettled population to have access to a larger area and better quality
agricultural land resource. The resettled community will rely on traditional hak
ulayat and adat mechanisms for securing land use rights from the Agofa clan (as
was done with the Sowai whilst resident in Tanah Merah).

(b) Land allocation: Following survey and demarcation, land will be allocated to
households. Community consultations will lead to selection of the appropriate
allocation process.
(c) Agricultural extension: As gardens are established, agricultural extension
agents will return to Tanah Merah Baru and Onar Baru. They will build on work
conducted in Tanah Merah during Phase I, facilitating the development of
womens groups using a Participatory Technology Development (PTD)/ Farmer
Field School (FFS) approach. During this phase the extension agents will focus
on garden establishment, helping to organize working groups, starting extension
on vegetable and field crop cultivation, etc.
(d) Material assistance: Newly resettled households will be provided with the
following assistance to restore their gardening and agroforestry activities: (i) a
basic tool set comprising crowbar, shovel, hoes, machete and weeding knife; (ii)
vegetable and field crop seed to encourage and support cultivation of vegetable
plots, and (iii) a range of perennial food crops and fruit trees.
Phase III Sustainability of Production and the Development of Agroforestry
Systems (YR20062008)
(a) Agricultural extension: Agricultural extension workers will continue to work in
the resettlement villages during 20052008. Initially the focus will continue to be
on garden development as it cannot be expected that a single round of training
will be sufficient for households to adopt and successfully manage the transition
to intensive vegetable cultivation and agroforestry.

Over time, the focus of agricultural extension will increasingly turn to issues
pertaining to sustainability, i.e., depletion of soil fertility, increased incidence
of pests, weeds and diseases, maintenance of seed stock, etc. A number of
additional subject areas should be addressed, including household nutrition

9 Livelihood Restoration and Development

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and kitchen gardens, commercial vegetable production including savings/credit

options, etc.
(b) Promoting longer-term agroforestry development initiatives: Depending on the
evolving situation and household interest, the Resettlement Team will facilitate
agricultural system diversification through establishment of fruit tree and cash
crops gardens, livestock, community forestry, etc. This represents the final
phase of Project resettlement activities, with on-going work being increasingly
dependent on government and other development agencies to provide
agricultural extension services.
9.3.1.3 Implementation of Agricultural Development Plan (YR2002-2004)
Phase I Planning and Preparation (YR20022003)
(a) Planning: A study assessing the agricultural potential of the Tanah Merah Baru
site, together with the socio-economic aspects affecting re-establishment of
agriculture was conducted by UNIPA and University of Queensland/Australia
in AprilMay 2002. In FebruaryMarch 2003 URS conducted a participatory
Regional Market Assessment and Planning Study involving community
representatives. In 2002 the Resettlement Team also led participatory fieldwork
that included an assessment of: (i) the biophysical constraints to agriculture in
Tanah Merah and the resettlement sites, and (ii) the socio-economic and cultural
parameters for agricultural development. The results of this work were utilized in
designing the agricultural restoration program, the broad outlines of which were
established by October 2002.
(b) Pre-move capacity-building in agriculture: Intensive vegetable cultivation: In line
with womens primary role in managing home gardens and vegetable garden
plots, the Resettlement Team focused on delivering an agriculture-focused
curriculum to womens groups in Tanah Merah. The objectives of the training
were to: (i) build awareness of impending changes associated with resettlement;
(ii) increase awareness and knowledge of the typical risks associated with
intensification (soil erosion, soil fertility decline, increased incidence of weeds,
and increased incidence of pest and diseases), and (iii) increase awareness
of options available for sustainable intensification, thereby enabling women
to design and operate intensive vegetable gardens. The curriculum addressed
training, trials and cross visits supporting agricultural intensification. Cross visits
(e.g., to womens groups in Fakfak and transmigrant farmers in Kelapa Dua)
aimed to expose selected farmers to intensified agricultural systems, annual and
perennial crop production systems, agricultural markets, etc.

Two womens groups comprising 30 women were established in January 2003.

In August 2003 a third group comprising Onar Baru resettlers was established.
In October 2003, government extension officers and farmer-trainers from
womens groups in Fakfak were provided with a nine-month contract to continue
implementing this program. As construction neared completion, the extension
agents and womens groups increasingly focused on visiting and developing
gardens in Tanah Merah Baru.

Agroforestry plots: Given the biophysical characteristics of Tanah Merah Baru

(shallow, sandy textured infertile soils on sloping lands with erosion hazard),

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development and institutionalization of village-level land use management

rules for agroforestry areas was seen are an important component of ensuring
sustainable production. In December 2002, the Resettlement Team facilitated a
three-day, field-based participatory learning exercise with community members.
Participants developed a draft set of land use guidelines that were provided to
the TMRC for further socialization with the entire community.
(c) Resolution of inter-village land access and use: As described above the 1999
land agreements for Tanah Merah Baru specify that 100 ha be divided between
Tanah Merah Baru and Saengga for use in agriculture. Between August 2002 and
June 2003, the Resettlement Team facilitated inter-village meetings to identify
and demarcate the 50 ha. In June 2003, a draft inter-village agreement and map
were prepared and concrete markers demarcated land allocated to Saengga
village at 50m intervals. The final agreement was completed in December 2003.
In addition, Tanah Merah Baru landholding boundaries were demarcated with
placement of concrete markers at 100m intervals. Areas outside the boundary
belong to the Simuna clan.
(d) Nursery Development and Operations: A nursery to support agricultural
restoration and development activities was established in Tanah Merah Baru in
January 2003. Five staff from Tanah Merah village were recruited to work in the
nursery.
Phase II Re-establishment of Agroforestry Systems (YR20042005)
(a) Physical development of garden areas:
(i)

Intensive vegetable production: Between June and November 2003,

approximately five hectares of land (distributed in ten parcels around the
footprint of Tanah Merah Baru village) was identified for use in intensive
vegetable and field crop gardening (Figure 9.3). The selective
logging and
garden clearing teams worked to clear undergrowth and trees from plots
selected for vegetable cultivation between December 2003 and April 2004.
During this time, a subsequent survey facilitated the sub-division of each
of the parcels into equal-sized plots (400m2) which were subsequently
allocated to households.

(ii) Extensive agroforestry systems: Selective harvesting and milling of trees

from the remaining 30 ha of lowland forest surrounding the Tanah Merah
Baru village footprint forms the basis of preparing agroforestry plots where
fruit, timber, medicinal and other commercially valuable trees can be
cultivated. URS Forestry developed a selective harvesting plan in December
2002 and completed an inventory of trees and tree marking in August 2003.
In July 2003, a selective logging team (deriving for the most part from
Tanah Merah and Saengga) was recruited to implement the harvesting plan,
the key activities being felling, milling, processing and storage of timber.

The chainsaw operators received training from URS forestry consultants on

three occasions in 2002 and 2003. The sawmill team received training in the
operation of mobile sawmills on two occasions in August and October 2003,
with another training scheduled for 2nd quarter 2004. The storage team received
training in processing and storage of timber from URS and the sawmill trainer.
Field implementation of the selective harvesting plan commenced in July 2003
and continued until December 2004. At the same time, URS was contracted to

9 Livelihood Restoration and Development

177

Figure 9.4 Vegetable Gardening Area Developments in Tanah Merah Baru

conduct a GIS analysis of land availability and develop a map for land subdivision
based on recommended criteria for division. Based on the results of this analysis,
the area was surveyed and subdivided into equal sized plots (0.2 ha).
(c) Land allocation: Vegetable and field crop garden areas were allocated prior
to relocation of the village. Consultations with the community identified a
mechanism for plot distribution and allocation, i.e., plots in any one parcel to

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be distributed to the most proximate households, with allocation by lottery.

Households were provided with the opportunity to start cultivation in May 2004,
two months prior to scheduled relocation. Agroforestry areas were allocated in
the period immediately after the physical relocation of the village.

As indicated in Chapter 6, the resettlement site of Tanah Merah Baru was

primarily selected to accommodate the needs of settlement. Within the site,
agricultural lands were divided evenly and allocated to every household so as
to provide each household with an opportunity to cultivate house gardens in
plots proximate to their residence and to cultivate agroforestry plots with newly
provided fruit trees in areas proximate to the village. Furthermore equal division
and allocation served to ensure that all households received the same benefit
of titled land. Households wishing to cultivate extensively are able to access
Simuna lands located adjacent to the settlement site (in a situation analogous
to Tanah Merah households usufructuary utilization of Sowai and Wayuri clan
lands).

(d) Material assistance: In the period immediately after physical relocation, the
Resettlement Team distributed the following inputs to all households:
A packet of agricultural tools (crowbar, shovel, hoes, machete and weeding

knife);
A packet of vegetable and field crop seed (21 types);
A range of perennial food crops and fruit trees (many of which are high

quality grafted fruit trees) as listed in Table 9.1.

Table 9.1 Allocation of Fruit Trees to Tanah Merah Baru and Onar Baru Households
Type of Tree

Seedlings per Household

Total Seedlings

Betel nut

762

Coconut (Hybrid)

508

Rambutan

508

Durian

508

Water Apple

254

Jackfruit

254

Breadfruit

127

Soursop

127

Pomelo

127

Sweet orange

127

Lime

127

Lemon

127

Mango

254

Guava

254

Candlenut

762

Nutmeg

762

Coffee

127

45

5,715

TOTAL

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179

9.3.1.4 Resettlement-Affected Community Participation Rates and Economic Returns from

Agricultural Development and Intensification

Section 5.4 outlines household agriculture systems in Tanah Merah. The agricultural restoration and
development program focuses on Tanah Merah households, because relocation from Tanah Merah
to Tanah Merah Baru and Onar implies a complete loss of agricultural and forest production. All
households relocating to Tanah Merah Baru and Onar Baru will participate in the physical development
and establishment of new vegetable and agroforestry gardens. This will establish household tenure
rights for garden areas and will be the basis of restoring household food production, an activity
supported by the Resettlement Team as described above.
Consideration of medium- to long-term participation in agriculture suggests the following development
for vegetable and agroforestry production systems in Tanah Merah Baru and Onar Baru:
Large-scale commercial marketability of vegetables is difficult. The URS Regional

Market Study shows that there are limited commercial vegetable gardening
opportunities (as defined by proximity and scale of markets and market prices of
basic products).
The existing markets ate already well-supplied. Existing regional markets

for vegetables and fruit in Sorong and Fakfak are distant and, in any event,
already well supplied, thus leaving little room for additional sellers (especially
where these additional producers are remote and face considerable hurdles in
transportation to/from market).
The Project will increase the marketability of vegetables. The Projects presence

in Bintuni Bay creates very large, albeit temporary construction-related markets

and a smaller, longer-term market once LNG plant operations commence.
Women will be the principal agricultural producers supplying the Project-related

markets. Project-related markets create specific opportunities for women to

engage in commercial vegetable gardening as most able-bodied men will be
employed during this time. However, womens interest, willingness and ability
to take advantage of this opportunity is likely to be limited because: (a) the
opportunity costs for labour are too high to encourage high participation rates
in labour-intensive commercial vegetable gardening, and (b) women lack the
background for coordinated production and marketing. Entry into commercial
vegetable gardening is made more difficult by the fact that the transmigrant
vegetable gardeners in Plasma/Kelapa Dua and Bintuni will also be competing in
these markets.
Household gardens and agroforestry production will primarily be used to meet

subsistence needs. Various factors suggest both higher levels of participation

in agroforestry and greater productivity from these gardens (i.e., distribution of
grafted fruit trees to all households, distribution of vegetable garden tools and
seed, capacity-building, proximity of plot to houses). The increased disposable
incomes associated with employment in Project construction activities make
it probable that households will choose to continue their current practices
to produce part of their subsistence requirements in vegetable gardens and
agroforestry plots and otherwise purchase produce from transmigrant vegetable
traders from Kelapa Dua. (Results from the 2001 socio-economic survey of the
Tanah Merah community indicate that an average monthly household expense
on agricultural produce is US$69.) At best the economic benefit that will be
gained from gardening will be the money saved from not having to purchase
produce.

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 There will be greater medium-term opportunities for marketing of fruit and

estate crops. In the medium to long term, household fruit and estate crops
(i.e., nutmeg and betel nut) will bear fruit. Household participation in the sale
of these crops is likely if markets are available, especially because these crops
require limited labour input beyond harvesting and transport to market. Given
Project distribution of fruit and estate crop seedlings (many of which are grafted,
improved varieties which will produce higher yields of better quality fruit) there is
a reasonable possibility that this will come to fruition.
Table 9.2 describes production of staple tuber crops for the baseline situation in Tanah Merah and
cultivation of the vegetable, field crop and agroforestry gardens in Tanah Merah Baru (and to a lesser
extent Onar Baru). The potential for commercialization of agriculture through vegetable and field
crop production is also described. The table illustrates the points outlined above, namely: (a) the
most probable scenario is that resettled households production of tuber crops will be equal to that
produced in Tanah Merah, and (b) cash incentives are too low for widespread commercial agriculture
to take place, especially where wages from employment on construction activities continue and
where competition from market gardeners in Plasma/Kelapa Dua exists.
Table 9.2Comparision of Household Agricultural Strategies in Berau Bintuni Bay
I

Vegetable and Field Crop Gardens Tanah Merah

CROP
Cassava

II

Productivity
(kg/ha)

Production (kg)
Veg & Field Crop
Gardens (1500m2)

Production (kg)
Agroforestry
(0m2)

PRODUCTION
TOTAL
(kg)

14,470

1,302

1,302

Sweet Potato

8,000

360

360

Taro

5,400

243

243

With multiple cropping assume

cassava, sweet potato and taro
planted on 60%, 30% and 30%
of land area only.

Agroforestry Gardens + Vegetable and Field Crop Gardens Tanah Merah Baru Model
CROP
Cassava
Sweet Potato

Productivity
(kg/ha)

Production (kg)
Veg & Field Crop
Gardens (325m2)

Production (kg)
Agroforestry
(2000m2)

PRODUCTION
TOTAL
(kg)

14,470

375

1,302

1,677

8,000

52

360

412

35

243

278

Taro

III

Assumptions

Assumptions
With multiple cropping for
vegetable and field crop gardens,
cassava, sweet potato and
taro planted on 80%, 20%
and 20% of land area only. For
agroforestry gardens, 1,500m2
cultivated and cassava, sweet
potato and taro planted on 60%,
30% and 30% of land area.

Commercial Agriculture Transmigrant Farmers in Plasma / Kelapa Dua

CROP
(production period)

Productivity
(kg/ha)

Production (kg)
Veg & Field Crop
Gardens (325m2)

Price (US$/kg)

Gross Income/
Cropping
(US$)

0.70

4.20

Spinach (1 mo)

1,000

Kangkung (1 mo)

1,000

0.70

4.20

String bean (3 mos)

5,000

32

0.70

23.40

Eggplant (4 mos)

10,000

65

0.50

32.50

Chili (3-4 months)

2,000

13

2.00

26.00

TOTAL

GROSS ANNUAL INCOME (3 crops per year)

Assumptions
With multiple cropping,
assuming all vegetables and field
crops are planted on 20% of
available land area.

90.30
271.00

Notes: Data derived from various sources including: (a) group interviews with womens groups in Tanah Merah, (b) group
interviews with commercial vegetable gardeners in Kelapa Dua, and (c) agricultural handbooks for Papua. Field data
collected in 2003.
Productivity figures dervied from agricultural information from the Department of Agriculture, Papua.

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181

9.3.1.5 Expected Outcomes

The major outcomes to be achieved by the agriculture program are listed below.
(a) Establishment of viable and sustainable land use systems in the
resettled communities

The resettled communities must develop viable and sustainable land use
systems in their new place of residence. Phase II activities should culminate in
the establishment and operation of such systems.

(b) The majority of participating households to adopt recommended

agroforestry technologies

Resettled households must be provided with awareness, knowledge and

capacity to develop viable and sustainable agricultural systems. Training activities
incorporated into Phase I and II allow participating households to develop their
capacity and adopt recommended technologies as appropriate.

(c) Participating households in Tanah Merah Baru and Onar Baru

achieve higher productivity and income streams than in Tanah
Merah

The goal of the agroforestry development program is that participating

households should become able to achieve higher productivity and income
streams than in Tanah Merah.

(d) Participating households have increased capacity to develop

intensified agricultural systems

Increasing capacity to operate intensified agricultural systems is intended to

provide households with the capacity to continue developing their agricultural
systems in a post-Project support scenario.

(e) Increased capacity to link into broader development framework

provided by NGOs and local government.

One aspect of achieving (d) is facilitating and encouraging greater links between
communities and the broader social, cultural and economic environment. In a
post-Project scenario, villagers will develop sufficient awareness, knowledge and
capacity to ensure on-going links to the broader environment.

9.3.2

Fisheries Access and Development Program

9.3.2.1 Program Description

The overall goal of the fisheries access and development program for resettlement-affected villages
is to restore and sustain increased harvest levels and income streams derived from marine resources.
This is to be achieved by: (a) mitigating the effect of reduced access to marine resources; (b) promoting
the development of markets for marine produce; (c) developing capacity-building amongst fishermen
in areas such as boat building, motor maintenance and repair, post harvest value-adding processing
of marine produce, and (d) facilitating development of fisheries-based enterprises. Finally, over the
long term, the resettlement-affected villages may become part of a broader initiative promoting
village-level responsibility for development and management of sustainable fisheries. The program
will focus on resettled villages but will include the host villages on the basis that resettlement and the

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resultant increase in population density will lead to increased harvesting pressure and greater risks of
resource depletion for all of the resettlement-affected population.
For the resettled communities the fisheries access and development program will be implemented
in three phases during 20022008:
Phase I Pre-Move Interventions: Access, Market Development and
Capacity-building
(a)
Assessing approaches to facilitating access to fishing grounds
(b)
Market development
(c)
Capacity-building
Phase II

Post-Move:

Restoring Access, Market Development and Building Capacity
(a)
Restoring access
(b)
Market development
(c)
Capacity-building
Phase III
Post-Move
: Developing

the Potential of Artisanal Fisheries

(a)
Long-term access
(b)
Capacity-building
(c)
Promoting small-scale fisheries enterprises
(d)
Promoting sustainable artisanal fisheries
9.3.2.2 Component Activity Description
Phase I Pre-Move Interventions: Access, Market Development and
Capacity-building
(a) Assessing approaches to facilitating access to fishing grounds:
Relocation from
Tanah Merah will impact the resettled communities access to established and
new fishing grounds. For Onar Baru there will be ready access to the fishing
grounds in the vicinity of Onar. Given limited resource pressure, both access
and productivity will be enhanced. Households moving to Tanah Merah Baru
will have more difficult physical access to fishing grounds but will also find
themselves on fishing grounds typically utilized by the Saengga community and
belonging to the Simuna clan. Longer-term access to proximate and familiar
fishing grounds in front of Tanah Merah as well those lying east of the LNG plant
site will be further reduced when the marine safety exclusion zone associated
with the LNG facility is enforced.

In anticipation of these impacts, Resettlement will explore options for mitigating

the effects of reduced access to fishing grounds. This work will focus on
assessing the ability of boats to bypass the safety exclusion zone. Criteria for
assessment will include speed, safety, ease of operation, suitability to support
traditional fishing activities, etc.

(b) Market development:

Fieldwork demonstrates that there are a limited number
of markets for marine produce. Current markets for artisanal fisheries prioritize

9 Livelihood Restoration and Development

183

the purchase of prawns and offer low prices in comparison to prices in

regional centres such as Sorong and Fakfak. Similarly, input markets are few
and generally offer fishing equipment at elevated prices. To increase market
competition and foster more income from these activities in the long run, the
post-resettlement work will aim to facilitate the entry of an increased number of
actors in the market for marine produce.
(c) Capacity-building: Sustainable development of fisheries requires investment in
human resource capacity through:
(i)

Training in improved techniques and technology for increased productivity

of fishing, i.e., increased harvest/unit effort;

(ii) Training in maintenance of fishing input such as motors, nets, etc.;

(iii) Training and extension in product diversification, processing and marketing,
and
(iv) Building awareness and knowledge of sustainable fisheries management
and development of village-level monitoring systems.
Such capacity-building interventions will continue for the duration of the Resettlement Program.
This commitment derives from the high probability that the combined impact of reduced access
and increased intensity of harvesting will have negative effects on the economic and environmental
sustainability of Tanah Merah Baru, Saengga and Onar fisheries. Further, it reflects the need for
repeated training to promote development of human resource capacity as well as providing the
opportunity to allow the fisheries development program to respond to changing circumstances as
the fisheries sector activities are re-established.
Phase II Post-Move:Restoring Access, Market Development and Building Capacity
(a) Restoring access: With

Tanah Merah Baru, construction activities employing

much of the male population of Tanah Merah for the two-year period prior to the
move, there has been a marked decline in the number of households engaging in
fisheries activities and owning boats and motors. Accordingly, immediately after
relocation, Resettlement will prioritize:
(i)

Facilitating

villagers construction

of traditional boats by providing working

groups with a set of tools, and

(ii) Providing

households with a motor for their boat.

(b) Market development:
The market development initiative started in Phase I will

be continued.
(c) Capacity-building: Sustainable development of fisheries requires investment in
human resource capacity through:
(i)

Training

in improved techniques and technology for increased productivity

of fishing, i.e., increased harvest/unit effort;

(ii) Training

in maintenance of fishing input such as motors, nets, etc.;

(iii) Training

and extension in product diversification, processing and marketing,

and
(iv)
Building awareness and knowledge of sustainable fisheries management
and development of village-level monitoring systems.

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Phase III Post-Move: Developing the Potential of Artisanal Fisheries

(a) Long-term access to artisanal fisheries:
As described above, the establishment
of the marine safety exclusion zone will significantly affect access to established
fishing grounds in the vicinity of Tanah Merah and east of the LNG site. To
mitigate these impacts, Resettlement will:
(i)
Build an access track along the LNG plant perimeter fence thereby allowing
Tanah Merah Baru residents to walk from their new village to Manggosa
and thereby access fishing grounds east of the LNG plant;
(ii)
Develop a small fishing village in Manggosa which can serve as a base for
fishermen working the proximate fishing grounds;
(iii)
Provide each clan with a speedboat that allows them to bypass the marine
safety exclusion zone in a timely and safe manner.
(b) Capacity development:
Sustainable development of fisheries requires
investment in human resource capacity through:
(i)
Training in improved techniques and technology for increased productivity
of fishing, i.e., increased harvest/unit effort;
(ii)
Training in maintenance of fishing input such as motors, nets, etc.;
(iii)
Training and extension in product diversification, processing and marketing,
and
(iv)
Building awareness and knowledge of sustainable fisheries management
and development of village-level monitoring systems.
(c) Promoting small-scale fisheries enterprises:
There are opportunities for
households to establish livelihoods singularly dependent on fisheries in the
post-LNG construction period. To the extent that households elect to do so,
Resettlement will facilitate the development of small-scale fisheries enterprises.
Key components of such assistance will include access to small business
development loans to acquire larger boats, requisite fishing equipment, etc.
(d) Promoting sustainable management of artisanal fisheries:
The Tangguh Project
has completed a study assessing the health of the Bay in December 2004.
It is anticipated that this study will demonstrate over-fishing by commercial
trawlers and predict a long-term decline in the sustainability of Bay fisheries.
The government of Kabupaten Teluk Bintuni is currently developing strategic
development plans. In addition, a separate group funded by USAID is developing
a Bay management plan. It is anticipated that these developments will lead
to increased efforts to regulate commercial fisheries and to engage the local
population (including resettlement-affected villagers) in sustainable management
of artisanal fisheries.

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9.3.2.3 Implementation of Fisheries Access and Development Program (YR20022004)

(a) Assessing approaches to facilitating access to fishing grounds

As described above, this activity involves an assessment of approaches to

mitigating the effects of reduced access to fishing grounds. Initial work has
focused on assessing the ability of boats to bypass the safety exclusion zone.
Specifically:
(i) Identification, procurement and trials of boats capable of bypassing the
exclusion zone.
During September to
October
2003, several boats of
various designs were procured from communities in the region and
transported to Tanah Merah for trial by fishermen. Fishermen were asked to
establish criteria for preferred boat design and to trial designs with special
attention being given to enable easy circumvention of the safety exclusion
zone, to boat operation under various weather and marine conditions, etc.
(ii) Boat-building.
Between November
2003

and June

2004, an experienced
boat builder provided on-the-job training to selected boat builders and
fishermen. The boat builder worked with 12 local boat-building trainees
to develop skills and capacity to build boats. Over the eight month period
three large boats were built. However the initial community response has
not been overwhelmingly positive reflecting the fact that the new boats
differ substantially from traditional boats (i.e., the technological jump is
substantial) and that households are evaluating the boats on their ability to
travel to regional centres rather than in terms of the ability to support local
fisheries and safely bypass the marine safety exclusion zone.
(b) Market development Facilitating access to input/output markets

Beyond restoration of access, development of artisanal fisheries in resettlementaffected villages requires improved access to regional markets. In early 2003
URS implemented a regional market study investigating the potential for
product diversification, processing and marketing. The study indicated that: (i)
prawn harvesting offers greatest short- to medium-term opportunities, and (ii)
there may be scope to sell fish as well although this will rely on prawn market
opportunities bringing buyers into the region.

The participatory URS market study brought people from the three villages into
contact with commercial companies operating in Sorong and Fakfak. One such
company (UD PIALA from Sorong) expressed interest in establishing a presence
in the Bay and is prepared to establish an operational base in Tanah Merah Baru.
The presence of such a company will bring market competition, higher selling
prices (i.e., 50100% increase in farm-gate prices) and access to lower cost
inputs from Sorong (e.g., 30% reduction in cost of nets) to many of the villages
in the Bay.

186

The Project will facilitate the entry of UD PIALA to Tanah Merah Baru through:

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

(i)

Provision of transport for plant equipment (e.g., LCT to transport ice makers
blast freezer, cold storage containers, water purifier from Sorong);

(ii) Monetary and in-kind assistance for plant development in Tanah Merah
Baru (i.e., site development, water supplies, etc.), and
(iii) Promotion of the development of UD PIALAcommunity agreements for
plant operation in Tanah Merah Baru.
(c) Capacity-building

In March 2003 training in prawn harvesting was conducted in Tanah Merah with
90 trainees attending. Thereafter an 18-member interest group was established
in June 2003. Each member of the group was provided with five nets on the
condition that: (i) he/she committed to record prawn catches, and (ii) he/she
committed to obligatory savings to ensure that nets can be replaced after three
months. This activity was mentored by the Department of Fisheries from Sorong
and was completed in September 2003. Data from the catch records were used
to develop fisheries-based baseline and potential income streams as described
in Section 9.3.2.4.

In November 2003, a Sorong-based trainer implemented a motor maintenance

and repair training in Tanah Merah. Further training in motor maintenance and
repair is scheduled for the first quarter of YR2004.

9.3.2.4 Resettlement-Affected Community Involvement and Economic Returns from the Fisheries
Access and Development Program

Developing fisheries as a productive, market-oriented activity has the greatest medium- to longterm potential for sustaining increased income streams for both resettled and host households.
Current predictions indicate potential parity between fishing- and employment-derived income
levels. Accordingly, it is anticipated that rates of involvement in fishing will follow an upward sloping
curve with progressively more households choosing to practice fishing as construction-related
employment opportunities decrease.
This trend will accelerate when Resettlement Program-induced improvements result in: (a) improved
access to existing (and new) fishing grounds; (b) improved access to markets; (c) improved capacity
(leading to higher harvest rates and better post-harvest processing), and (d) product diversification,
consequently leading to progressively higher incomes.
Table 9.3 presents data for gross monthly household income derived from prawn harvesting. Three
scenarios are presented, namely:
(a) The current situation;
(b) Improved market access (and farm-gate prices), and
(c) Improved capacity (skills, boats) and improved market access.

9 Livelihood Restoration and Development

187

Table 9.3Predicted Trends in Estimated Gross Income per Household from Prawn Harvesting in
Resettlement-Affected Villages
Current Situation

Non-Motor

Motor

2.7

4.8

15

15

40.5

72.0

Avg catch/day (kg)

Avg no days catching/month
Avg catch/month
Avg no months catching/year

Assumptions

$2

$2

$5.40

$9.60

$81

$144

$648

$1,152

Non-Motor

Motor

Avg catch/day (kg)

Avg no days catching/month

15

Assuming same commitment to fishing

Avg catch/month

90

Avg no of months catching/year

Price/kg

$2

Gross income/day

$12

Gross income/month

$180

GROSS ANNUAL INCOME

$1,440

Non-Motor

Motor

Avg catch/day (kg)

Avg no days catching/month

20

Avg catch/month

120

Avg no of months catching/year

Price/kg

$3

Gross income/day

$18

Gross income/month

$360

GROSS ANNUAL INCOME

$2,880

Price/kg
Gross income/day
Gross income/month

GROSS ANNUAL INCOME

Improved Productivity

Assumptions
Productivity increase stemming from
improved capacity, nets and improved boat
design and means of propulsion

Improved Market Access and Productivity

Source: Data derived from URS Fisheries and Market Studies

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Assumptions
Productivity increase stemming from
improved capacity, nets and improved boat
design and means of propulsion
Assuming greater capacity and increased
commitment to fishing

50% increase compared to prices prior to

resettlement stemming from improved
market access and loss of middlemen

9.3.2.5 Expected Outcomes

The major outcomes to be achieved by the fisheries development program are listed below.
(a) All resettled households have access to and use of fishing
grounds

Resettlement will impact upon resource access and use. Mitigation of these
impacts involves several activities that together will lead to the re-establishment
of household access and use of fishing grounds. In the context of resettlement,
re-establishment of access implies access to fishing grounds beyond the
artisanal fishing grounds lying directly in front of Tanah Merah Baru and Saengga
(i.e., exploitation of more distant, deep water fishing grounds) and changes in
harvest methods as well as the marine produce harvested and sold.

(b) The majority of participating households adopt recommended

techniques and technologies

Households participating in the fisheries access and development program

will increase awareness, knowledge and capacity to develop sustainable and
viable artisanal fisheries. Participating households will adopt, utilize and adapt
recommended fishing techniques and technologies aimed at increasing harvest/
unit effort.

(c) Product diversification and increased capacity to process and

market marine products

Product diversification, processing and value-adding, and marketing are key

strategies in ensuring that households achieve increased income associated
with exploitation of marine resources. Successful diversification, processing and
marketing at the household, group or community-levels will be an indicator of
this outcome.

(d) Participating households in Tanah Merah Baru, Saengga and Onar

achieve higher income streams

The program aims to promote sustainable increases in household production

and/or incomes from harvesting of marine resources. The studies implemented
(i.e., product diversification, processing and market assessment), the facilitation
of access to fishing grounds and markets, the provision of material inputs, and
various training initiatives will ensure households achieve this outcome in the
medium to long term.

(e) Participating households increase capacity to continue

sustainable fisheries development

Increased awareness, knowledge and capacity will form the basis of on-going
development of artisanal fisheries in a post resettlement environment.

(f) Increased capacity for networking, linking to a broader

development framework provided by NGOs and local government

One aspect of achieving (e) is facilitating and encouraging greater links between
communities and the broader social, cultural and economic environment. In a
post-Project environment, villagers will develop sufficient awareness, knowledge
and capacity to ensure on-going links to the broader environment.

9 Livelihood Restoration and Development

189

9.3.3

Hunter-Gathering from Forest and Marine Resources

As described in Chapter 5, Tanah Merah households engage in gathering of various produce
from forest and marine resources. The Resettlement Team specifically considered the availability
(quantity and quality) of replacement
resources in the resettlement sites
of Tanah Merah Baru and Onar
Baru. In Tanah Merah Baru the
resettled community has access
to forests lying to the south of the
resettlement village and is able to
access the shoreline in front of the
resettlement plot. In Onar Baru the
resettled community has similar
access to savanna and forests

Harvesting Shellfish in Tanah Merah Baru

At low tide on any given day, groups of
women from Tanah Merah Baru can be seen
on the mudflats in front of Tanah Merah Baru.
Informal interviews with women about the
availability of shellfish indicates that this food
product is readily available.

around the resettlement village as

well as a long shoreline. In addition,
prior to resettlement, the Resettlement Team specifically asked both men and women from Tanah
Merah about the availability of medicinal plants in the resettlement locations, with the intention of
propagating plants in the nursery if they were limited in abundance. However communities indicated
that medicinal plants were readily available in and around the resettlement locations.
9.4

Savings and Loans and Small Enterprise Development

9.4.1

Introduction
A field assessment of the potential for developing micro-enterprise and micro banks in Bintuni Bay
was conducted in October 2002. Key findings were: (a) local capacity in money management is
limited, with people having no experience is using money as a form of wealth accumulation; (b)
financial services (whether formal or informal) for the Bay are virtually non-existentexisting banks
in larger centres do not provide savings/loan services to the local communities and, where microfinance is available (only in Bintuni), interest rates are exorbitant (80100% per month); (c) there is
significant potential for savings and micro-enterprise development although sustainable development
of the latter requires (a) development of a money management (savings ethic) among target groups,
and (b) identification of appropriate micro-enterprise options.
The rationale for supporting micro-finance and micro-enterprise development in the resettlementaffected villages is two-fold. First, household participation in village (and later plant) construction
may entail a monthly household income of up to IDR2 million. At the village level this translates
to over IDR300 million entering the economy of Tanah Merah (Baru) and Saengga villages
every month. Promotion of better money management (i.e., savings) is aimed at ensuring that
households derive longer-term benefit from the current (temporary) economic boom. Second, it
is clear that the longer-term economic viability of the resettlement-affected communities will be
partially dependent upon their ability to create successful small enterprises, separate from direct
employment opportunities during plant construction and operations. Providing the opportunity and
developing the capacity of would-be entrepreneurs to take advantage of the business opportunities
in the markets around the Bay (including the Tangguh Project itself) is seen as a long-term income
development pathway critical to the success of the LARAP. Particular attention will be given to the
development of micro- and small enterprise opportunities affiliated with supporting the operations

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

phase requirements of the LNG facility. This may include fence maintenance and repair, landscape
management, catering, etc.
9.4.2

Savings/Loan Program
Given the lack of access to and availability of banking services throughout the Bay, Resettlement will
facilitate the development of village-level savings/loans units. Selected villagers will receive training
in village-level bank management and administration and village-level savings/loans units will be
established. Continuous mentoring will be provided for a two to four year period to ensure that a
culture of savings and wealth accumulation is adopted by the community and integrated into the
village economy.

9.4.3

Small Enterprise Development Plans

Resettlement will support Small Enterprise Development (SED) in the three resettlement villages
as a means to: (a) diversify the local economy and thereby promote the reconstruction of resettled
households livelihoods, and (b) prepare the local communities for a post-LNG plant construction
scenario where employment opportunities and associated incomes will drop dramatically.
Resettlement will, together with the broader micro-enterprise program defined in the ISP, provide
business development training and mentoring services to potential entrepreneurs. While Resettlement
will promote use of established means of accessing finance, where appropriate and necessary small
grants may be provided to individuals in the resettlement-affected villages.
The outcomes of the savings/loan and small enterprise development program will be increasing:
Increased savings by households of resettlement-affected villages;
Increased levels of entrepreneurship and business management skills as

reflected in an increased number of sustainable small businesses in these

communities;
Increased levels of local employment associated with business development,

and
Increased income streams associated with business development.

9.4.4

Implementation of Savings/Loan and SED Activities (YR20022004)

As described above, a field assessment of the potential for developing micro-enterprise and micro
banks in Bintuni Bay was conducted in October 2002. Following their field assessment, the consultants
prepared a Kelompok Simpan Pinjam (Savings/Loan Group or KSP) proposal for implementation in
the resettlement-affected villages. The Bank Perkreditan Raykat (BPR) and YPPWP were identified
as trainers/mentors. Nominated candidates attended a three-month applied practical training in
Jayapura and Biak between June and August 2003. In September 2003, an YPPWP mentor and
the candidates returned to site, and presented the Resettlement Team with a field action plan for
KSP development. A number of additional staff (preferentially women) were selected for on-thejob training. Break-even point was anticipated to be 12 months. Resettlement will support YPPWP
administration and staff costs until such time that household participation rates allow the KSP program
to be self-supporting. YPPWP has been contracted to provide monthly mentoring of the KSPs.

 Yayasan Pengembangan Prakarsa Wirausaha di Papua (YPPWP), is a Papua-based NGO focused on

development of community-based micro-finance and micro-enterprise initiatives.

9 Livelihood Restoration and Development

191

At the same time as KSP program implementation, the Resettlement Team also supported financial
management training for selected villagers from the resettlement-affected communities. The threepart training was implemented by YPPWP at monthly intervals between September and November
2003. This training increased basic financial management capacity of key social actors in the
target villages. Participants included village treasurers, committee treasurers, kiosk managers and
entrepreneurs.
9.5

Vocational Training
A vocational training facility will be developed in Arundai (a north shore town). From

the Project
perspective, this centre will fulfill two critical roles:
Provide training to potential LNG construction site employees, thereby providing

them with the capacity to secure jobs during the LNG plant construction period,
and
Serve as a vocational training centre that builds capacity and skills within the

Bay-wide population, allowing them to secure employment in the developing

Bay-wide economy and dampening the reduction in employment and income
associated with completion of construction activities.
The Project will subcontract the Vocational Education Development Centre (VEDC) to provide training
curricula across a broad range of subjects including masonry, carpentry, electrical, plumbing, home
economics, etc. In the long term, government will assume full responsibility for the facility. The
Tangguh Project will support local government to develop a vocational training centre on the north
shore of the bay.
9.5.1

Plans
Every year between 2005-2009, Resttlement aims to support the participation of 15-20 individuals
from the three resettlement-affected villages in selected vocational training courses.
It is anticipated that, in the long term, vocational training will respond to the developing economy of
the Bay thereby ensuring that there is a local workforce capable of participating in the economy and,
in so doing, also address the reduction in employment opportunities that will inevitably take place as
LNG construction draws to a close.

9.6

Training and Employment of Resettlement-Affected Communities

9.6.1

Training and Employment Role in Income Restoration

From the outset, Tangguh Project implementation was planned to maximize employment
opportunities for the resettlement-affected communities, the DAVs, and Papuas Birds Head Region.
These plans are described in the AMDAL section addressing Work Force Management Plans.
For the resettlement-affected communities, training and employment in the Tangguh Project will
provide opportunities for developing skills, gaining experience and significantly increasing household
incomes. Project facilitation of resettlement-affected villagers participation in: (a) Resettlement
Program activities; (b) village resettlement-related construction in Tanah Merah Baru, Onar Baru and
Saengga; (c) plant construction, and (d) plant operations, aim to maximize the immediate, mediumand long-term employment-related benefits of the Tangguh Project. In the short to medium term,
these benefits derive from training, wage employment and on-the-job experience. In the long term,

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

these benefits result in increased regional employment opportunities associated with Project-related
training and work experience and from Resettlement Program activities promoting alternative nonproject related work opportunities.
9.6.2

Resettlement-Affected Communities Workforce

Table 9.4 describes the potential local workforce resident in the resettlement-affected
communities.

Table 9.4 Potential Workforce in Resettlement-Affected Communities

Location

Men

Women

Total

Tanah Merah

122

101

223

Saengga

81

68

149

Onar

31

29

60

234

198

432

TOTAL

The potential workforce has been defined as men and women between 18 and 40 years of age,
reflecting composition of the Projects Saengga Base Camp workforce demonstrated in a Local
Wage Earner Survey, where 88% of the employees were between 20 and 40 years of age. However
experience demonstrates that the total workforce is smaller (and substantially so for women) for the
reasons outlined below:
(a) Role of women:

Womens participation is expected to be considerably lower

than the numbers presented in Table 9.4. Womens traditional role as nurturer
and caretaker in nuclear and extended families implies that only single women
or elder women with older children will take advantage of employment
opportunities. This constraint is further exacerbated by the very strong (and
male-dominated) socio-cultural reservations regarding womens participation
in wage labour, especially where women are removed from their family
responsibilities and where young, single women are placed in a male-dominated
environment.
(b) Education and skills:

Both educational attainment and local standards for skilled

employment are below that required by Project contractors. While contractors
are, to some extent, waiving formal education and training as criteria for
employment thereby allowing local people to be recruited and trained, it remains
that the majority will be engaged as unskilled labour or as helpers to more
technically proficient and experienced personnel.
(c) Health:

All potential employees are required to pass health checks before

employment by Project contractors. Experience to date suggests that the poor
health environment typical of the resettlement-affected (and other) villages
raises some barriers to participation. For example, high incidence of TB in
communities prevents optimal participation.

 Potential workforce defined as men and women between 18-40 years of age. Data obtained
from census/socio-economic survey conducted in Tanah Merah (YR2001) and Saengga and Onar
(YR2002).

9 Livelihood Restoration and Development

193

(d) Cultural attitudes to work:

Experience to date demonstrates that local villagers

have low productivity and high absenteeism rates (reported to be up to 30% by
PTJO) during which time they choose to reside in the village or engage in other
activities rather than work. While this data reflects difficulties for contractors
in engaging an active and reliable workforce it also suggests that there will
be reasonable numbers of people choosing not to join the workforce and/or
dropping out from the workforce after a period of employment.
(e) Securing employment:

Experience demonstrates that recruitment processes in

the resettlement-affected communities and DAVs are subject to economic and
social dynamics that reduce equitable distribution of employment opportunities.
Although the Project actively promoted adoption of fair recruitment processes
guaranteeing local participation over and above migrant labour during village
construction, the field recruitment processes have allowed migrant labour to
be recognized as bona fide residents and subsequently offered employment
opportunities ahead of local people. To preempt similar difficulties during the
LNG plant construction period, the Project, the EPC contractor and government
will develop a Workforce Recruitment and Management Plan for the Bay.
According to the YR2002 census, wage labour is an important, but not major, occupation for Tanah
Merah residents. In February 2002, 17% of Tanah Merahs working adult population classified
themselves as worker/labourers or employees, the majority of which had been only recently hired
by Project contractors. Other pre-Project baselines are not available, although it can be assumed
that only minimal wage employment occurred through large-scale resource extraction (i.e., logging,
prawn trawling) companies operating in the Bay.
9.6.3

Resettlement Program-Related Employment

The majority of the Resettlement Programs rely on individual and household motivation to participate
in capacity-building and livelihood development. Hence there are limited wage-earning opportunities.
Nonetheless, income-earning opportunities exist:
Committees: Members of the TMRC and SRDC receive a stipend for

participation and facilitation of resettlement-related and development

programming. The level of this stipend varies from US$40 for SRDC members
to US$100/month for TMRC members reflecting outcomes of discussions
between the Committees and the community. This stipend will continue
until such time that construction and/or resettlement are completed and the
resettlement-affected villages assume DAV status.
Development programs:

As described in Chapter 8 and previous sections in this

chapter, the Resettlement Program is implementing an Onar housing project,

a Tanah Merah Baru nursery, a selective timber harvest program, a savings/
loan program and boat-building activities in resettlement-affected villages.
Table 9.5 details position, number of employees, monthly wage and duration
of employment of people engaged in these activities. In addition to wage
employment, employment offers significant scope for developing skills and
experience.
Per diems:

Participants in monitoring groups, development groups (e.g.,

womens groups) and training receive an allowance (or per diem) for
participation. The Committees pay these allowances and per diems.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 9.5 Resettlement Program-Related Wage Employment for Resettlement-Affected Villages

No. of
Employees

Monthly Wage
(US$)

Duration of
Employment/
Support (months)

400

3,200

Manager

300

18

5,400

Laborers

250

18

18,000

Activity/Position

Total
Income
(US$)

Onar Housing Project

Project Manager
Nursery

Selective Harvesting of TMB and Garden Development

Managers (chainsaw,
sawmill, storage)

300

12

18,000

Labourers

20

250

12

60,000

Savings/Loan and Small Enterprise Development

Program Managers

150

2,700

Program Assistants

80

1,800

100

3,600

Fisheries Boat Building Program

Boat Builders (training)

TOTAL

9.6.4

33

86

112,700

Employment in Village Construction for Resettlement-Affected Villages

9.6.4.1 Overview
For resettlement-affected villages, employment opportunities related to village construction have
been made available due to the construction of Tanah Merah Baru and Onar Baru, the re-construction
of Saengga and to a lesser extent, the renovation of Onar. This section describes training initiatives
promoting capacity development to meet employment opportunities and presents employment and
income data from participation on these projects.
9.6.4.2 Training
In preparation for resettlement-related construction employment opportunities, the Resettlement
Team implemented skills training in Tanah Merah village between January and June 2002. Following
needs assessment, training design and TMRC selection of participants, a Sorong-based training
institution implemented skills training in Tanah Merah village. Table 9.6 provides details of skills
training and number of participants. After training, carpenters were engaged as apprentices in
on-the-job training in panel prefabrication in Manokwari for a six-month period. After return from
Manokwari, they were recruited by PTJO on TMB construction activities. In a similar fashion, the
women participating in training for catering and camp services (laundry, hygiene, etc.) were recruited
by Universal, the PTJO caterer, in May 2003.
The Resettlement Team originally planned to implement a similar skills training in Saengga. Staffing
constraints preempted timely organization and implementation of the training. In addition variable
relations with the SRDC and their engagement in a capacity-building exercise in Jayapura delayed
development of such training opportunities. As demonstrated by data presented below, it should be
noted that the lack of training has not been a constraint to employment of Saengga households.

9 Livelihood Restoration and Development

195

Table 9.6 Skills Training for Tanah Merah Villagers

Type of Skills Training

Participation Rates

Carpentry

2 x 12 trainees

Plumbing

1 x12 trainees

Electrical

1 x 12 trainees

Catering

1 x 12 trainees

The general low level of skills in the communities implies that skills cannot be developed nor
dramatically improved in short training courses. For example, PTJO skilled personnel (i.e., carpenters,
electricians, etc.) generally have five years experience before they are recognized as independently
capable, technically proficient personnel. Given this wide discrepancy in standards, it is inevitable
that most local people are employed as unskilled labourers or technical helpers to recognized
professionals. In the latter case, they then receive on-the-job training to allow development of
skills and capacity, thereby placing these workers in a better position for subsequent employment
opportunities.
Finally, both village construction contractors (PTJO and FIRMA) conducted pre-employment training
in contract and salary management, HSE, PPE, etc.
9.6.4.3 Employment
The Engineering, Procurement and Construction (EPC) contracts for construction of resettlementaffected villages in Tanah Merah Baru, Onar Baru and Saengga set recruitment guidelines for unskilled,
trained and skilled labour from the resettlement-affected villages. Employment opportunities include
general unskilled labour, carpentry, plumbing, electrical and catering. Table 9.7 outlines targeted and
actual local employment rates in resettlement-related construction.
Table 9.7. Targeted and Actual Local Employment Rates in Resettlement-Related Construction
No. Local Employees for
Tanah Merah Baru

No. Local Employees for

Onar Baru

No. Local Employees for

Saengga

Target

Actual

Duration
(months)

Target

Actual

Duration
(months)

Target

Actual

Duration
(months)

Tanah Merah

NA

146

19

NA

10

10

65

NA

18

Saengga

NA

146

19

NA

22

10

65

NA

18

Onar

NA

NA

14

10

NA

TOTAL

NA

292

19

NA

46

10

130

NA

18

Village

The Project has promoted preferential employment of the population from the resettlement-affected
communities. Experience with the Tanah Merah Baru construction project indicates that managing
in-migration is difficult, with large numbers of non-resident Sumuri returning to Tanah Merah and
Saengga in search of employment. Given the projects significant total workforce requirements,
up to 50% of the number of people employed on the project were from outside the resettlementaffected villages. For the resident population, the majority of households are employed on the Project
and it is noticeable that a substantial proportion of the male population is absent from the village and
traditional activities.

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Income flow stemming from resettlement-related construction employment is received as

wage payments. Tables 9.89.10 describe household and village income flows associated with
resettlement-related construction employment in Tanah Merah Baru, Onar Baru and Saengga,
respectively.
Table 9.8. Household and Village Income from Tanah Merah Baru Construction Jobs
No. of People
Employed

Estimated
Duration
(months)

Estimated
Average
Monthly (US$)

Total Village
Income (US$)

Tanah Merah

146

19

300

833,200

Saengga

146

19

300

833,200

19

300

292

19

300

1,666,400

Origin

Onar

TOTAL

Table 9.9. Household and Village Income from Onar Baru Construction Jobs

No. of People
Employed

Estimated
Duration
(months)

Estimated
Average
Monthly (US$)

Total Village
Income (US$)

Tanah Merah

10

10

200

20,000

Saengga

22

10

200

44,000

Onar

14

10

200

28,000

TOTAL

46

10

200

92,000

Origin

Table 9.10. Household and Village Income from Saengga Construction Jobs

No. of
People
Employed

Estimated
Duration
(months)

Estimated
Average
Monthly (US$)

Total Village
Income (US$)

Tanah Merah Baru

65

18

200

234,000

Saengga

65

18

200

234,000

18

200

130

18

200

468,000

Origin

Onar

TOTAL

The monthly wages provided by the village construction contractors are substantial. Comparison
with baseline income data for the resettlement-affected villages indicates that these salary levels
exceed the average monthly household incomes for four income quintiles in each of the villages, with
only the highest income quintiles in Saengga and Onar achieving higher average monthly incomes.
It is also noteworthy that of the number of local people employed on the Project up to 50% come
from outside the resettlement-affected villages. One may infer that the economic benefits of local
employment extend well beyond the resettlement-affected villages.
Continuity of employment on the Saengga village re-construction project, various LNG plant- related
activities (e.g., fence line construction and repair) and subsequent LNG plant construction (refer
to next section) imply that for a period between physical relocation (YR2004) and completion of
LNG plant construction (YR2008), households will secure substantially higher incomes that those
achieved prior to Project entry.

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9.6.5

Employment During LNG Plant Construction

9.6.5.1 Overview
Construction of the LNG plant will require 3.5 years. Total employment (including labour, support, and
supervision) will be low during site clearing and preparation, increasing to 1,000 people one year into
the project. In the second year, employment needs will increase rapidly, peaking at approximately
5,000 and maintaining that level or higher until a couple of months before construction completion.
Figure 9.5 outlines the labour requirements for LNG plant construction. Table 9.11 shows the
estimated composition of the LNG construction workforce.
Figure 9.5 Predicted Labour Requirements for LNG Plant Construction

Table 9.11 Composition of LNG Construction Workforce

Position
Construction Equipment Operator
Pipe fitter/Welder
Ironworker
Machinist, Millwright

Workforce
245
1,035
787
43

Electrician

147

Instrument Technician

137

Carpenter

297

Insulator

731

Painter
Labourer/scaffolder

TOTAL

71
895

4,388

The Tangguh Project has developed a Workforce Management Program applicable to the LNG
plant construction phase. The Workforce Management Program guidelines are incorporated in the

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Invitation To Bid (ITB) tender documents prepared for contractors. These documents state that the
Owners [Tangguh Projects] intent is to: (a) improve the resourcing of the Tangguh Project with
indigenous Papuan people; (b) promote cultural harmony and secure relations within the Project
workforce, and (c) promote cultural harmony and secure relations between the workforce and
neighboring communities. To this end, the Owner requires the Contractor to maximally use qualified
Papuan people in the construction workforce, and recommends recruitment processes using the
following order of priorities:
Members of resettlement-affected villages and other Directly Affected Villages

(DAVs) (each household will be offered one position on the plant construction
workforce);
Residents of the Birds Head Region of Papua;
Residents of Papua;
Residents of Indonesia.

Furthermore, the document also stipulates recruitment processes and employment targets for LNG
plant constructionthe Owner shall review all subcontractor recruitment plans, and requires the
subcontractor to follow the agreed and established Contractor recruitment plan
and
the Papuan
proportion of total site man-hours will be at least 20% during the EPC Phase. Recruitment from the
DAVs will be equitable, and broadly in proportion to village populations. All recruits from DAVs will be
subject to approval from the Owner to ensure that only bona fide village residents are recruited.
For ease of reference, the construction force is divided into four categories : unskilled craft, semiskilled craft, skilled craft and management/supervisory.
Table 9.12 shows minimum hiring targets
for each category of employment by region of origin. During the construction phase, the EPC will be
required to fill 100% of all unskilled craft positions and 10% of the semi-skilled positions with people
from DAVs (including the resettlement-affected villages).
Table 9.12 M
 inimum Hiring Targets for Each Category of Employment by Region of Origin for LNG
Plant Construction
Employment Category

DAVs

Birds Head,
Papua

Greater Papua

Nationals

Total

Unskilled Craft

100%

0%

0%

0%

100%

Semi-skilled Craft

10%

20%

63%

7%

100%

Skilled Craft

0%

2%

10%

88%

100%

Managerial/Supervisory

0%

1%

5%

94%

100%

Target figures are percentages of total person-hours in each category

 Definitions and examples of the terms used to refer to the construction workforce are provided below:
* Craft A position or job.
* Skill Knowledge or ability generally acquired through education, training or experience.
* Unskilled Craft No specific skills are required to perform the work. Examples include domestic
cleaning, gardening and basic civil work.
* Semi-skilled Craft Low levels of skills are required to perform the work. Basic literacy is a
requirement for these job categories. Examples include drivers, security guards, warehouse yardmen,
helpers and tradesmen.
* Skilled Craft Specialized skills, training and experience are required to perform the work. Examples
include welders, electricians, installation supervisors and technicians.
* Managerial/Supervisory A high level of formal education as well as significant additional experience
and training are necessary for these positions. The positions have responsibility and accountability
for execution of the work, engineering, procurement/logistical support, cost and schedule control,
quality attainment and HSE. Examples include foremen, section heads, contract managers, security
managers, warehouse managers and other positions of advanced technical responsibility.

9 Livelihood Restoration and Development

199

To support the EPC in meeting its obligations, the Project will implement the following:
Carry out a specific skills inventory in the DAVs prior to the Construction Phase.
Identify suitable people from the DAVs who will be offered to the contractors for

employment during construction. The contractors will not be obliged to employ

candidates identified by the Project if the candidates do not meet skill or health
requirements;
Monitor the achievement of these targets and make public these data through

the routine reports on RKL/RPL compliance to government, and

Appoint a permanent Workforce Management staff responsible for identifying

potential recruits from the DAVs, and for the review and approval of any
purchases from the local villages. This position also will be responsible for
managing the grievance procedures with local employees.
9.6.5.2 Mentoring and Training
The EPC Contractor is required to provide a Papuan Workforce Counsellor and Industrial Relations
Officer. Together these staff will work to mentor the workforce and deal with issues as and when
they arise (e.g., motivation and discipline of local workforce). These EPC staff will work alongside
Project Community Liaison Officers assigned to the work site.
As a preparatory step to assist the local population to enter the workforce, the Project will contract a
professional training institution to provide orientation training to candidate employees. Such training
will provide local candidates with an introduction to contracts and salary management systems,
workforce management systems, schedules, discipline, HSE, PPE, etc., as well as basic training
(i.e., basic numeracy, tool handling, etc) that will allow promotion from non-skilled to semi-skilled
employment.
During LNG plant construction it is estimated that an approximately equal number of unskilled and
semi-skilled labourers will be hired. Given that the majority of potential employees in the DAVs will
not possess the requisite skills for employment on a major industrial site, the Project will require
the EPC contractor to train between 400500 potential employees from the DAVs (including the
resettlement-affected communities) to meet this target. (Note that participation of the resettlementaffected communities in resettlement-related construction implies that they already have an adequate
set of skills for recruitment on the LNG construction workforce).
The training programs will be designed to produce semi-skilled and skilled labourers. It is envisaged
that the EPC contractor will either sub contract or implement training programs on the site in the
initial stages of construction. Training courses may address any or all of the following areas: carpentry;
plumbing, electrical, construction-equipment

operator, pipe fitting/welding, ironworking, machining/

millwrighting, insulation, painting, scaffolding, cooking, catering and housekeeping; administration
and clerical/secretarial, services.
9.6.5.3 Employment
Table 9.13 outlines estimated LNG plant construction phase rates of employment for resettlementaffected communities. The Resettlement Program estimates that 70% of households in Tanah
Merah, Saengga and Onar will accept the offer of employment in plant construction. Hence, it is
anticipated that 181 jobs will be accepted. It also is expected that within the first one to two months,
approximately 10% will voluntarily elect to discontinue their employment and return to their villages,
leaving 161 employees from resettlement-affected villages on the workforce. It should be noted that
employment opportunities vary in duration depending on phase of construction and activity. Hence

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the minimum duration of a contract may be 3 months while the maximum may be for the duration of
the LNG construction period.
Table 9.13 E
 stimated LNG Plant Construction Phase Rates of Employment for Resettlement-Affected
Communities

Total Families

Initial No. of
Employees
(70% of households)

Drop Out Rate

(10%)

Final Number of
Employees

127

90

10

80

Saengga

94

66

59

Onar

36

25

22

257

181

20

161

Community
Tanah Merah

TOTAL

The Project will employ a Workforce Management and Recruitment Officer (WMRO) who will be
responsible for monitoring and recording information about training, recruitment and targets reached.
The Contractor and WMRO are mandated to work with the communities to communicate job offers,
arrange training, and maintain employment records. The WMRO also is responsible for ensuring
that contractors meet their employment targets and for working with the communities to address
issues that arise over training and employment. This monitoring and follow-up function is necessary
to minimize rapid declines in local employment during construction and to record why the declines,
if any, occur.
9.6.5.4 Income Flow
Table 9.14 provides estimates of LNG plant construction phase income flow for resettlement-affected
communities. Estimates are based on the hiring assumptions described in the previous section.
Based on these estimates, income levels from wage labour will increase almost 600% during the
Project construction phase. This increase in wage labour income will provide a major, albeit relatively
short-term, increase in per capita income for the resettlement-affected communities.
Table 9.14Estimated LNG Plant Construction Phase Income Flows for Resettlement-Affected
Communities
No. of
Resettlers
Employed

Estimated
Duration
(months)

Estimated
Average Monthly
Salary (US$)

Training

90

150

13,500

Unskilled

90

30

250

675,000

Place or Origin/Type
of Employment

Village Income
per Month
(US$)

Tanah Merah

TOTAL

688,500

Saengga
Training

66

150

9,900

Unskilled

66

30

250

495,000

TOTAL

504,900

Onar
Training

25

150

3,750

Unskilled

25

30

250

187,500

TOTAL

191,250

PTJO paid high wages to their village construction workforce. The LNG Construction Contractor will offer lower wage
rates for their labour force.

9 Livelihood Restoration and Development

201

9.6.6

Employment during LNG Plant Operations

9.6.6.1 Overview of LNG Plant Operations Workforce Requirements

Table 9.15 provides operational workforce requirement estimates for the LNG plant. The total
workforce requirement is 519.
Table 9.15 Estimated Operational Workforce Requirements for the LNG Plant
Skill Level

Number of Positions

Unskilled craft

42

Low-skilled craft

50

Semi-skilled craft

184

Skilled craft

183

Managerial/Supervisory

60

TOTAL

519

9.6.6.2 Employment During Plant Operations

Table 9.16 presents the Project targets for progressively changing the composition of the Tangguh
LNG Project operational workforce. Over a period of two decades, local and other Papuan employees
will progressively advance to more highly skilled jobs, and therefore fill a greater proportion of the
plant total workforce. From the outset of the operations phase of the LNG plant, people from DAVs
will fill 100% of the 42 unskilled craft positions. While it cannot be expected that any villagers from
DAVs will qualify for managerial, supervisory or skilled positions at the start of the operations phase,
by the tenth year of operations (2015) the Projects target is that at least two skilled positions will
be filled from DAVs and by the twentieth year of operations, 18 DAV villagers will be employed in
skilled positions.
Table 9.16 Targets for Progressive Localization of the LNG Plant Operational Workforce
Skill Level

2008

2010

2018

2028

Unskilled craft

12

12

12

12

Low-skilled

10

13

14

Semi-skilled

13

Skilled

Managerial
Positions filled by residents of resettlement-affected villages

9.6.6.3 Income Flow from LNG Plant Operations-Related Employment

The transition from construction to operation of the LNG plant implies a significant reduction in
employment for the resettlement-affected communities. While it is expected that much of the
operations workforce will come from the resettlement-affected villages it is likely that many
residents will find further construction-related, operations-related or other employment outside of
the resettlement area. It is estimated that income streams from employment during plant operation

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will be consistent with, if not higher than, the levels measured by the 2001 census, which already are
a significant increase from pre-Project levels.
9.6.7

Training and Development to Promote Participation in Alternative Employment

Opportunities
The transition from construction to operations for the LNG plant implies a significant reduction in
employment opportunities for resettlement-affected communities and DAVs. ISP/Tangguh Project
is implementing a multi-pronged, capacity-building strategy to develop worker skill base in Papuas
Birds Head Region (including the DAVs and resettlement-affected communities in the Bay) and
thereby promote local participation in employment opportunities associated with LNG plant
operations and beyond. The strategy includes providing: (a) support of basic education; (b) support
of higher education; (c) vocational training, and (d) offshore operations training
(a) Basic education program: The goal of this program is to increase the number of
students graduating from elementary school and entering junior high school. A
brief description of the Program is provided in Chapters 10 and 11.
(b) Support of higher education: To meet the longer-term goal of hiring Papuans in
managerial, supervisory and skilled positions, the Tangguh Project will support a
limited number of scholarships for high school graduates to study for university
degrees, and university graduates to study for advanced degrees. From 2006,
the Project will provide funds to support higher education. These funds will
be divided amongst selected Papuan universities that will be responsible for
allocating scholarships for both local and international study. Scholarships are
to be provided to students to study subjects consistent with the Projects
employment needs.
(c) Vocational training: Between 20052009, Resettlement will support the
participation of 15 people per year from the resettlement-affected villages in
vocational training in either the vocational training centre established on the
north shore of the Bay or in established centres in Manokwari, Sorong and/or
Jayapura.
(d) Offshore operations training: The Tangguh Project is training 20 to 30 Papuans
in offshore operations. This four-year apprenticeship will develop the capacity
of the trainees to manage and run offshore platforms. It is anticipated that the
program will provide the first group of trained Papuan operators for the start of
plant operations. Thereafter, the program will continue providing training and
apprenticeships to ensure continuity of plant operations.
Residents and students from the resettlement-affected communities will be eligible to participate in
training, apprenticeship and scholarships programs.
In addition as described in earlier sections, the Project will promote savings/loans and small enterprise
development programs for employees from RAVs to further diversify livelihood activities and cushion
the loss of income flow at the end of the construction phase. Particular attention will be given to the
development of micro- and small enterprise opportunities affiliated with supporting the operations
phase requirements of the LNG facility. This may include fence maintenance and repair, landscape
management, catering, etc.

9 Livelihood Restoration and Development

203

9.6.8

Summary of Employment and Training

For the resettlement-affected communities, the key aspects of the various training programs
and employment opportunities associated with resettlement-related construction and LNG plant
construction and operations are:
The Project meets criteria developed from other resettlement experiences

for effectively using employment as a reconstruction and income-generating

resource;
The Project will train and hire residents of the resettlement-affected

communities for the construction of their new villages;

The Project will ensure priority employment for construction jobs, offering

at least one position per household, to residents of DAVs (including the

resettlement-affected communities);
The Project will require construction contractors to meet hiring guidelines

and priorities, and to hire qualified candidates from the resettlement-affected

villages;
The Project will require the EPC contractor to organize skills training for selected

candidates from the resettlement-affected communities to qualify them for

employment during construction;
The Workforce Management Officer will keep resettlement-affected

communities informed of employment and training opportunities, and monitor

employment rates and practices of contractors, and
The Project will develop programs to raise awareness of the temporary nature of

employment during construction and to help construction employees prepare for

and adjust to the loss of jobs at the end of the construction period.
9.7

Estimated Income Flows From Livelihood Restoration and Development

Projects for Resettlement-Affected Villages
The overall Resettlement Program objective is to achieve resettlement with development. Specifically
the Resettlement Program commits to ensuring that resettled and host communities are able to
sustainably improve and surpass their income, standards of living, and livelihoods (in real terms) over
and above pre-Project (displacement) levels or levels expected without the Project. Accordingly, an
important indicator of the likelihood of success of planned interventions is the predicted income flow
for the resettlement-affected communities.
This final section of Chapter 9 presents estimates of village-level income flow for the resettlementaffected villages. The analysis allows an integrated picture of the income impact of the individual
livelihood restorations and development projects. The predicted income flows (both sectoral and
integrated) also form the basis of a baseline against which the field reality can be compared.
Prediction of village-level income flows is based upon assumptions regarding participation rates and
per capita income potential of the livelihood sectoral activities (i.e., trade, employment, fisheries,
agriculture, other) available to the target communities.
Participation rates are calculated on the basis of assumptions regarding the fraction of the population
eligible to participate in the said activity. Table 9.17 outlines the assumptions for eligibility. These
assumptions are based on present-day observations of participation rates in the sectors. Participation

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rates are defined on the basis of a hierarchy of preference, with all activities assumed to be mutually
exclusive. Participation in trade and small business opportunities is deemed to be the most preferable
option. Currently households in the top income quintile operate all trade and small businesses. It is
assumed that this pattern will continue and that the male population of the highest income quintile will
be the dominant force in this sector.It is also recognized that women are likely to play an increasing
and socially important role in small business development.
Table 9.17 Assumptions for Eligibility to Participate in Sectoral Activity

Sector

Assumptions

Trade and small enterprise

development

20% of households

Construction-related
employment

100% of males between 18-60 years of age (clamped at 1job/household)

20% of females between 18-60 years of age

Fisheries

100% of males between 18-60 years of age

Variable participation (25-75%) of females between 18-60 years of
age being determined by assumed availability of equipment and male
participation in fishing

Agriculture

100% of males between 18-60 years of age

80% of females between 18-60 years of age

Employment derived from

participation in vocational
training

Progressive build-up to 2007/08; 15% of laid-off workers in 2009;

subsequent slower rate of increase reflecting declining average ability of
remaining labour pool

Other

Assuming 90% of the population is engaged in one or other type of

income-earning activity, this category captures the remainder of the
income-earning population not counted as active in sectors listed above.

Employment is the second preference and participation rates reflect predicted Project-related
employment opportunities. While other sectors, most notably fisheries, could compete with
employment, the benefits of wage employment (status, training, meals, etc.) will encourage higher
participation at the expense of other sectors. As the novelty of the rigid work schedule wears off
and the benefits of the fisheries development program become apparent, it is anticipated that fishing
participation rates will increase. Following employment, it is assumed that the population will choose
to participate in fishing, primarily because it was a dominant livelihood activity and that it has the
potential to provide incomes on par with employment. Agriculture will be the default option reflecting
the low status, hard work and low income potential associated with this activity. Women and children
will form the bulk of the group working in agriculture.
Per capita income potential is calculated on the basis of baseline data, observations of current social
behaviors, and the predicted impacts of the livelihood restoration and development programs.
(a) SED/Trade:

SED/Trade-derived income predictions are based on predictions for the following

enterprises:
(i)

Trade: prawns, fish, value-adding through post-harvest processing (e.g.,

salted fish, prawn paste) and fuel supply;

(ii) Retail goods: dry goods (e.g., food, drinks, personal care, etc.), arts and
crafts, durable goods/house wares (e.g., electronics, bicycles, motorbikes,
kitchen utensils and crockery, bedding), furniture;

9 Livelihood Restoration and Development

205

(iii) Services: boat-building, transportation, motor repair, communications, food

and hairdressing.

In general, SED/trade-derived income is predicted to increase dramatically at

the start of construction, in line with availability of higher disposable incomes
and Project-facilitation of SED. A 1050% drop at the end of construction,
with no growth thereafter, follows growth rates of 1025% per annum during
construction. Figures depend upon capture of the market (i.e., the percentage of
the total trade that is locally owned and thus benefits the target group).

(b) Wage employment:

(i)
It is assumed that one member of each household in the resettlementaffected villages will be employed during plant construction (using census
data as baseline).
(ii)
While it is assumed that relatively few construction workers are likely to
secure permanent Project employment when plant operations commence
(a total of 13 from the three resettlement-affected villages), it is expected
that 15% of the retrenched workforce is able to find alternative postconstruction employment, primarily with service companies catering to
plant operational needs.
(iii)
It is assumed that plant operations will absorb an additional five permanent
workers per annum with recruitments shared among the resettlementaffected villages.
(c) Savings/Loans:
(i)

It is assumed that all households participating in wage employment will

save a portion of their income.
The ability to set aside income as savings
reflects that fact that households in resettlement-affected villages earn
higher incomes and will not incur expenses for housing maintenance and
improvements.

(ii) For this exercise, the following savings rates have been utilized: 5%
during 20052007; 2.5% in 2008 as some villagers are retrenched, with
subsequent withdrawal of all savings over 20092010 to smooth the curve.
(d) Marine resources (prawns, fish):

Income predictions based on daily catch, effort and price estimates.

(e) Agriculture:

Income predictions based on potential productivity and price estimates. Decline

in vegetable and field crop productivity three years after garden establishment
reflecting decline in soil fertility.

(f)

Vocational training-derived employment:

For training prior to end of construction,

(i) For trainingoccurring prior to end of construction,assume 30% of
participants are able to secure employment following vocational training;
(ii)For training occurring after completion of construction,assume only 20% of
participants are able to secure employment following vocational training,
(iii)Assume monthly salaries of Rp2,000,000 for all employment

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

(g) Resettlement benefits:

Resettled households are receiving a food basket entailing twice weekly

provision of fresh goods for a period of six months and monthly provision of dry
goods for a period of 12 months.

Figures 9.69.11 (pages 210212) illustrate predicted income trends for the resettlement-affected
villages for the decade during 20042014. The following observations are relevant:
Wage employment is the most important source of income throughout the

construction period.
Migration of local workforce to employment negatively impacts overall fisheries

income, but this recovers due to price and productivity improving interventions.
Layoff of workforce reduces direct employment but also impacts other sectors

(i.e., SED/trade, fresh marine and agricultural produce markets) as disposable

income declines.
Per capita income is above the baseline throughout the 10year period. Per

capita incomes peak during plant construction, decline when large-scale wage
employment ends, then increase again as laid-off workers migrate to fishing
(major effect) or find employment outside the Project (minor effect). As postconstruction period recovery proceeds and disposable incomes increase again,
SED/trade income recovery follows.
The per capita income trends are similar in all resettlement-affected villages.

Resettlers from Tanah Merah experience higher levels and more rapid growth in
per capita incomes (of Saengga and Onar) due to higher level of employment and
improvements in agriculture and earlier start on fisheries capacity improvement.
However, per capita incomes merge over time as activity sets become
increasingly similar.

9 Livelihood Restoration and Development

207

Figure 9.3
Figure 9.6 Model for VillageProjected
Income by
Sectorbyfor
Resettlers
from
Tanah
Merah
Income
Sector,
Former
Tanah
Merah
Residents
600,000

Employment
500,000

Fishing
Agriculture
SED/Trade

400,000

Savings

$US per Year

Other
300,000

Food Basket

200,000

100,000

Baseline

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

(100,000)

Year

Figure 9.4
Projected Total Income, Former Tanah Merah Residents

Figure 9.7 Model for Total Village Income by Sector for Resettlers from Tanah Merah

900,000

Food Basket
800,000

Employment
Fishing

700,000

Agriculture
Other

600,000

SED/Trade
Savings

$US per Year

500,000

400,000

300,000

200,000

100,000

Baseline

2004

2005

2006

2007

2008

(100,000)

Year

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

2009

2010

2011

2012

2013

Figure 9.5
Figure 9.8 Model for Village Income byProjected
Sector, Saengga
Income byVillage
Sector, Saengga Village
400000

Employment
350000

Fishing
Agriculture

300000

SED/Trade
Savings

250000

$US per Year

Other
200000

150000

100000

50000

0
Baseline

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

-50000

Year

Figure 9.6
Figure 9.9 Model for Total Village Income by Sector, Saengga
Village

Projected Income by Sector, Saengga Village

600000

Employment
500000

Fishing
Other
Agriculture

400000

SED/Trade

$US per Year

Savings
300000

200000

100000

0
Baseline

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

-100000

Year

9 Livelihood Restoration and Development

209

Figure 9.7
Income by Sector, Onar Village
Figure 9.10 Model for Village IncomePredicted
by Sector,Village
Onar Village
160,000

140,000

120,000

Employment
100,000

Fishing

$US per Year

Agriculture
80,000

SED/Trade
Savings

60,000

Other

40,000

20,000

0
Baseline

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

-20,000

Year

Figure 9.8
Projected Total Village Income by Sector, Onar Village

Figure 9.11 Model for Village Income by Sector, Onar Village

250000

Employment
Fishing
200000

Agriculture
SED/Trade
Other

$US per Year

150000

100000

50000

0
Baseline

2004

2005

2006

2007

2008

Year

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

2009

2010

2011

2012

2013

9.8

Risk Analysis for Key Restoration Activities

Table 9.18 provides a risk analysis for key restoration activities. In essence three types of risks
can be identified, namely: (a) the risk that the natural resource base supporting specific livelihood
activities becomes depleted; (b) the inability of the resettlement program to alone solve key issues
affecting livelihood activities, e.g., access to and availability of markets for marine produce, and (c)
community perceptions of entitlement that undermine the development orientation of livelihood
restoration programs. Risks of resource depletion are of greatest concern and these are addressed
through specific interventions in the agriculture and fisheries sectors and will be a focus of on-going
monitoring and evaluation. Broader constraints to economic development may be addressed through
other ISP programs including enterprise development and the Birds Head Business Development
Program. Finally community expectations need to be managed with appropriate communications,
on-going consultation, etc.
The following chapter outlines Project commitments to social services in the resettlement and host
communities and the work for increasing community cohesion. Subsequent chapters outline how
Project commitments are to be delivered and monitored to ensure that resettlement objectives are
being achieved.

Table 9.18 Risk Analysis for Planned Livelihood Restoration Activities

No

Livelihood Restoration Activity

Risks

Agriculture

Soil fertility decline stemming from continuous cultivation on

vegetable and agroforestry gardens in Tanah Merah Baru
Erosion on sloping lands in Tanah Merah Baru leads to resource
depletion in vegetable and agroforestry gardens

Fisheries

Lack of market development limiting options for marketing of

prawns (and other marine produce)
Limited effectiveness of support to facilitate by-passing of
marine safety exclusion zone and accessing distant fishing
grounds leading to resource depletion in and around the
Saengga River (affecting the Tanah Merah Baru and Saengga
communities) and more limited contribution of fisheries
activities to household income and livelihoods

Savings/Loan and Enterprise Development

Limited willingness/ability of target population to adopt savings

mentality, i.e., wealth accumulation
Issues of trust, social cohesion affect viability of savings/loan
schemes
High expectations regarding Project support of enterprise
development

Vocational Training

Ability to identify and secure community support for candidates

High expectations re subsequent employment

Employment

Project does not meet all commitments to RAVs

High expectations re on-going employment during LNG
construction and operation

9.9

Conclusion
This chapter has set out the substantial Project commitments to achieving resettlement with
development. Interventions in livelihood sectors that span the range of agriculture, fisheries, microfinance and small business development and wage employment form the basis of striving to ensure
that the resettled and host communities are able to sustainably improve and surpass their income,
standards of living and livelihoods (in real terms) over and above pre-Project (displacement) levels or
expected levels without the Project.

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10. Social Services and Community Cohesion

10.1

The Social Dimension of Resettlement

The social impacts of resettlement are many and varied. Table 10.1 is a list of potential postresettlement social issues and/or impacts for resettlement-affected villages.
The comprehensive change induced by resettlement and the uncertainty and insecurity that such
change brings suggests a strong initial (albeit transitional) role for the Project. The development and
implementation of a cohesive social program requires a holistic approach allowing development of
the emerging social dynamic while addressing specific issues. Acknowledging connections between
general and specific impacts, individuals unpredictable responses to change, and the consequent
evolution of the overall social dynamic demands a strong, responsive and dynamic social program
designed, owned and supported by the target communities.
This chapter describes the social component of the Resettlement Program. The social component
will address general and specific impacts with a range of interventions that:
(a) Are being implemented over three to five years, starting one year prior to
physical relocation. While some of these interventions are one-off events, most
have a degree of continuity recognizing that social change is both gradual and
based on actual experience;
(b) Have variably measurable outcomes. Focused interventions designed to address
specific issues have specific outcomes. Interventions aimed at facilitating the
development of a positive emerging social dynamic may not have specifically
measurable outcomes.
At the outset it must be emphasized that analysis of the baseline social context for resettlement
indicates that the social program aims for more than restoration. Information presented in Chapter 5
describes a lack of community cohesion, a fundamental lack of good governance and leadership, and
the right of the individual over and above the collective good. Bringing comprehensive change into this
social context is fraught with difficulty. In this context, adherence to Consultation, Empowerment,
Partnership, Participation, Sustainability (CEPPS) principles in program design and implementation as

10 Social Services and Community Cohesion

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well as planning a phased reduction in the Project role are the basis for addressing the social impacts
of resettlement and attempting to ensure sustainability post-resettlement.
In this chapter the social program is presented in two phasespre-move and post-move.
Table 10.1 Potential Post-Resettlement Social Issues and Impacts for Resettlement-Affected Villages

Scale

Issue

Inter-Village

a. Land disputes
Residual social ownership of land and resources by land-selling clans
Boundary disputes
b. Resource use competition and conflict
Competition over fishing grounds
c. Administrative status of villages
Uncertain status of Onar and Onar Baru in relation to Saengga and Tanah Merah Baru
d. Joint use/management of common property resources
Shared use of secondary school and clinic in Tanah Merah Baru
e. Changing relations between resettlement, host and other villages
Resettlement benefits (between resettlement-affected villages, pressures from other
Sumuri villages, non-Sumuri claims)
Religious differences
Ethnic composition
In-migration

Intra-Village

a. Changing relations between Tanah Merah Baru and Onar Baru

b. Land disputes
c. Resource use competition and conflict
Resource scarcity
Changed tenure systems
Changes in resource use patterns
Food security
d. Managing facilities and services
Staffing of facilities (education, health, religious)
Village-level management and maintenance and repair of facilities and services
e. Management of village-community enlargement
Managing community resources (prepared lots, agricultural lands)
Managing in-migration/out-migration
f. Representative and responsible leadership and government

Household

a. Use and management of facilities and services

b. Changes in tenure and resource use patterns
c. Household-family relations
d. Representative and responsible leadership and government

10.2

Pre-Move Social Programs

10.2.1

Preserving Culture
Project agreements with resettlement-affected communities set out a position of respect and
consultation regarding cultural heritage. This is particularly evident in: (a) Project efforts promoting
documentation of what is essentially an oral heritage (i.e., adat ceremonies, music, dancing); (b)
consultations regarding the location, protection or movement of sacred sites and cemeteries and (c)
dispute resolution.

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From the outset, the Project has attempted to minimize disturbance to culturally important sites. For
example, during public consultations for the AMDAL, public input into LNG plant design led to the
identification of two culturally important issues: (a) the need to move a shallow-water grouping of
sacred rocks (Batu Kumapa) to construct the Combo Dock, and (b) the need to move Tanah Merah
cemeteries to accommodate future development of gas storage tanks (if the LNG plant is expanded
beyond a two-train capacity). The Project responded to community concerns by: (a) re-designing
the Combo Dock and moving it further east so as not to disturb the sacred rocks and (b) agreeing
to maintain the cemeteries in their current location until such time that increased production may
require additional gas storage capacity. Such expansion is a medium-term prospect. At such a time,
expansion plans will be evaluated and if the land on which the cemeteries are located is required
for expansion, the Project team will re-open discussions with the former Tanah Merah community.
Meanwhile, an interim maintenance and access agreement has been developed to allow the relocated
communities continued access to the cemeteries. Similarly two sacred sites on the Tanah Merah
Baru site have been identified. In October 2003, the SRDC and the Project built fences to safeguard
these sites both during and after construction. Finally in 2004 it became evident that a number of
Sowai sacred sites would have to be relocated. Extensive consultation has led to development of
new spirit houses allowing relocation of the sites.
10.2.2

Social Relations
In recognition of the changing social environment brought about by resettlement (i.e., resettlement
host community relations), the Project is promoting increased and varied social contact between
resettlement-affected villages. For example:
(a) Various traditional ceremonies (upacara adat) associated with initial clearing of
the land, relocation of the Tanah Merah community and start of construction
activities in Saengga have brought members of the resettlement-affected villages
together. These ceremonies have been sponsored by the Project;
(b) Various development activities (e.g., womens group agricultural development
activities) have brought people from the various villages together;
(c) In June 2003, the Project sponsored an inter-village youth football competition
for teams from Tanah Merah, Saengga and Onar, and
(d) In June 2003, the Project sponsored a childrens drawing competition and school
children drew landscapes of Tanah Merah.
In addition, substantial recruitment of Tanah Merah, Saengga and Onar residents in the construction
workforce is bringing communities together and indirectly preparing them to be more proximate
neighbors. Social activities targeting different members of the communities will be implemented
periodically over the next five years.

10.2.3

Preparing the Community for Resettlement

Plans for the physical relocation of the Tanah Merah community are described in Chapter 8. Premove activities set the social groundwork for departure from Tanah Merah, the physical move and
preparations for settling in Tanah Merah Baru and Onar Baru. The Resettlement Team has facilitated
these activities since January 2003.
Departure from Tanah Merah involves: (a) appropriate ceremonies for leaving the Christian and
Muslim cemeteries; (b) appropriate ceremonies in the mosque and churches for the communitys

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departure from Tanah Merah and subsequent demolition of these places of worship and (c) personal
preparations for departure. The Project will facilitate the various ceremonies.
Development communications media are being utilized to build community awareness of the
physical relocation plans and new livelihoods in Tanah Merah Baru and Onar Baru (i.e., move plan;
new village environment; facilities management and use, communal management of public facilities
and services, maintenance and repair; household-level participation in agriculture and fisheries, etc.).
Where appropriate, site visits, training and focus group discussions have followed the dissemination
of media.
Two examples follow. First, both limited land area and poor soil quality in Tanah Merah Baru require
changes in current agricultural practices if viable, productive and sustainable agriculture is to be
practiced. Media will promote general awareness of the agricultural situation in Tanah Merah Baru
and explain the basis for land allocation. Since January 2003, womens groups have received practical
training for intensive vegetable gardening and production. At the same time, the womens groups are
participating in site visits that include nursery production activities, land division and development,
etc. Agricultural extension activities will culminate in the development of model gardens in Tanah
Merah Baru, allowing households to start cultivating garden plots in the third quarter of YR2004.
Second, both Tanah Merah Baru and Onar Baru villages will have vastly improved facilities and services.
However, these improvements require: (a) a household-level awareness and ability to utilize the
services; (b) a village-level management system for the facilities and services, and (c) development
of local-level capacity for maintenance and repair. Development communications media will build
awareness of these issues and focus group discussions with village government and the TMRC will
explore communal management options. At the same time, selected villagers will be trained in basic
operations, maintenance and repair.
10.3

Post-Move Social Programs

10.3.1

Food Security and Transitional Support

As discussed in Chapter 6 the risk of food insecurity is moderate. This risk only applies to households
moving from Tanah Merah to Tanah Merah Baru and Onar Baru. Villagers in Saengga and Onar will not
experience adverse effects on food security. For Tanah Merah households, adverse impacts on food
security can be anticipated to occur in the short and medium term.
In the short term, food security will be negatively affected in the period leading up to and including
relocation from Tanah Merah to Tanah Merah Baru and Onar Baru. These impacts stem from villagers
lack of time to:
(a) Engage in livelihood activities (particularly prawning and farming);
(b) Prepare meals, and
(c) Collect fuel wood.
University of Cendrawasih surveys indicate that Tanah Merah households already use cash to partly
fulfill their food needs (i.e., through purchase of rice and vegetables). Thus medium- to long-term
food security is more likely to be determined by cash-income earning activities. Nonetheless, in the
medium term, the changes in livelihood systems resulting from relocation (especially those activities
associated with loss of access to and use of natural resources) will impact upon food security.
Specifically:

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 Households moving from Tanah Merah will experience a complete loss of

access, use and production from existing gardens. This will entail a short-term
lack of subsistence crops until such time that crops can be harvested from
new gardens established in the new locations and a longer-term lack of fruit
production. As described in Chapter 9, vegetable garden development in the
new villages commenced in the second quarter of 2004, a few months ahead of
the scheduled move. Hence, the period without agricultural production will be
minimal. In addition, households in Tanah Merah Baru will have access to smaller
gardens than typically cultivated. The necessary process of intensification implies
a medium- to long-term risk for sustainability of food production stemming from
risks of soil erosion, reduced soil fertility, increased weeds, pests, etc.
Households moving from Tanah Merah will have to access and use different

fishing grounds for prawning and fishing activities. As described in Chapter

6, access to Simuna fishing grounds in front of Tanah Merah and Agofa
fishing grounds in front of Onar should be possible. In addition, the boatbuilding program described in Chapter 9 should mitigate many of the adverse
resettlement impacts on fishing. Accordingly, limited impacts on income and
subsistence are anticipated.
Households moving from Tanah Merah will not experience decreases in income

in the short to medium term as prawning activities will continue and wage
employment in village and plant construction will provide income-earning
opportunities.
To mitigate the risks of food insecurity in the short to medium term, the Project will:
Provide each household with a food basket, the composition of which will be

determined through consultations with villagers and a nutritionist. The food

basket will comprise a fresh goods component (meat, vegetables and fruit) that
will be provided for six months and a dry goods component to be provided for
12 months. The duration for provision of a food basket has been determined by
reference to: (a) when gardens are established, and (b) the time required for
establishment and production of subsistence crop production (i.e., cassava and
sweet potato). The main staple, cassava, requires three to eight months from
planting until harvest.
Ensure ready access to fuel wood (obtained from land clearing activities

associated with garden development).

In the medium to long term, risks of food insecurity will be addressed through the provision of
training and capacity-building in:
Intensive agriculture, ensuring long-term sustainable production;
Fisheries, leading to increased production, product diversification, improved

marketing and higher household incomes, and

Small business development allowing households to develop and participate in

alternative economic activities thereby also diversifying their income sources.

These interventions are described in Chapter 9.

10 Social Services and Community Cohesion

217

10.3.2

Leadership and Governance

The poor leadership and governance in resettlement-affected communities is described in Chapter
5. Accordingly, village-level organization and management of infrastructure and utilities in the new
villages will be problematic. Resettlement will link with the ISP village-level governance program,
and in this way with District government, to promote awareness, responsibility and capacity for
leadership and good governance. The program will commence in 2006.

10.3.3

Facilities Management
The Project will contract a Facilities Manager for up to two years following completion of construction
of new villages. The Facilities Manager will be responsible for:
On-going development of household and community awareness and ability to

utilize facilities and utilities;

Monitoring and evaluation of communal management systems for services

including electricity and water supply and waste disposal;

Ensuring the existence of local capacity in operations, maintenance and repair of

services and appropriate village-level mechanisms to ensure timely correction of

problems;
Ensuring availability and development of market channels to supply spare parts

for village and household systems;

Ensuring community-level awareness, consultation and participation in

addressing issues concerning the public good.

In addition it is clear that the on-going cost of operating the centralized electricity system (and by
extension the water system) as well as ensuring the availability of financial resources to meet the
costs of maintenance and repair is an important issue, especially because the per capita costs
of operating the new systems is considerably higher than households pre-displacement utilities
expenditures. Resettlement will address this issue by promoting the development of a village
cooperative and cooperative enterprises that will reduce the direct cost to individual households.
Resettlement will specifically assess the operational needs of the LNG facilities to identify enterprise
development opportunities that may be met by the village cooperative.
10.3.4

Social Relations
Post-resettlement, the Project will continue to plan and implement inter-village social initiatives with
the objective of promoting and nurturing an overall positive social dynamic. These initiatives will be
implemented through sporting competitions with village youth, through school students, through
development groups, etc.
A major post-resettlement concern is the potential for inter-village and inter-household resource
use conflict. A few hypothetical scenarios follow: (a) escalation of a private complaint regarding
increased prawn harvesting intensity and an arbitrary correlation to declining prawn harvests could
set off a chain reaction with negative outcomes; (b) individuals in Saengga and Tanah Merah Baru
decide to re-open land agreements between the two villages leading to significant friction and loss
of harmony, and (c) households neither respect nor adhere to land distribution agreements leading
to householdand perhaps clan-level

disagreements.

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10.3.5

On-going Community Development

Project obligations in relation to resettlement and the resettlement-affected communities extend over
a nine-year period between 2001 and 2009. Livelihood reconstruction and development programs
for these communities have been described in Chapter 9. Program implementation is described in
Chapter 11.
Additionally, after the physical relocation of Tanah Merah and the re-construction of Saengga, both
resettlement villages (Tanah Merah Baru and Onar Baru) and Saengga will be absorbed into the
Tangguh DAV Recognition program through which the villages are eligible for development funding of
US$30,000/year over ten years. This program is managed by the Projects ISP team. (The application
of CAP funds to Tanah Merah Baru and Saengga will respond to the changed status of Onar, the
residents of which derive from Tanah Merah and Saengga. CAP funds will be allocated on pro rata
basis using household population for allocation). Finally the three land-selling clans (i.e., Wayuri,
Sowai and Simuna) and, to a lesser extent, the Sumuri, will start to receive funds from the Projects
development foundation for use in community projects.

10.3.6 Gender
The process of economic and social dislocation can and often does exacerbate existing gender
disparities and inequalities. The possibility of such an outcome exists at all stages of a Resettlement
Program including: (a) consultations; (b) site selection, village layout and house design and (c)
after relocation. Previous sections have described the inclusion and participation of women in
consultations on most matters related to resettlement. Importantly, in Chapter 4 it was noted that
land title would be provided in the name of the husband and the spouse; in Chapter 8, targeted
consultation with women in site selection, village layout and house design was described, and, as
demonstrated in Chapter 9, several livelihood reconstruction measures specifically engage women.
This section addresses the potential impacts of relocation on women and a more general, longerterm developmental approach to capacity-building and empowerment of women.
As described in Chapter 5 women endure the burden of household management responsibilities (i.e.,
child bearing and rearing, food collection and production, food preparation, firewood collection, water
collection, hygiene, sanitation and washing). The new village and new houses contribute substantially
to a reduction in womens workloads while simultaneously contributing to improved hygiene and
health. Specifically the provision of reticulated water supplies to every house with multiple outlets
in every house greatly reduces the load
of water collection for cooking, clothes
washing and house cleaning. With raised
sinks and cooking fireplaces, the kitchen

Life in Onar Baru

facilitates food preparation and cooking.

Women in Onar Baru are delighted with

Currently the abundance of fuel wood

the move. Quite apart from access to

as garden development occurs on the

agricultural lands they also cite that the

new settlements reduces the burden of

village is quiet at night with far fewer

collection. Hence in many ways women

disturbances than in the old Tanah Merah

are more able to actively participate

and that everybody is in bed by 10 pm.

in re-establishing their livelihoods, i.e.,

agriculture, fisheries, etc.

 Asian Development Bank (2003). Gender Checklist: Resettlement. Asian Development Bank, Manila,
Philippines

10 Social Services and Community Cohesion

219

The impacts of changes in community and

social networks in Tanah Merah are less
apparent. By opting to allocate houses
randomly by lottery, social networks
established at the old village site have
been dismantled. This was apparent
after relocation with women spending
considerable time looking to re-establish
linkages. Intra-household issues are also
of concernin a culture where aggression
and physical violence against women is

Workloads
In 2005 informal discussion with several
women highlighted the changes that
have occurred in their workload. With
proximate gardens, reticulated water
supplies, and improved kitchens they
said their workload was lower than that
in the old Tanah Merah.

commonplace and accepted there are

concerns that post-relocation changes
may increase gender disparities (income, employment) and may increase social stresses leading to
more alcoholism amongst men and related violence against women.
Finally as demonstrated in Chapter 5 the Project is cognizant of the gender stereo typing of roles.
While the immediate priority of livelihood reconstruction may require these roles to be maintained,
there are many and various opportunities
to promote greater gender equality in
the resettlement-affected communities.
These include: (a) promoting womens
participation

in

newly

established

village bodies and development groups/

initiatives; (b) promoting womens rights
to participate in wage employment and
seeking opportunities for them to do so;
(c) promoting womens participation in
decision-making on key household issues
such as food production, nutrition, and
education, and (d) promoting opportunities
for women to further their education
through

preferential

allocation

of

scholarships and participation in vocational

Womens Empowerment
The ISP includes a Womens
Empowerment program. The program
includes women from all the DAVs,
including the resettlement affected
villages, aiming to engage progressive
and empowered women to work in
their own communities to promote
womens empowerment generally and
provide specific extension on education,
vocational training, health and induced
impacts as these relate to women.

training. Gender equality will be a factor in

all programs developed and implemented
by the Resettlement Team.
10.3.7

Vulnerable Groups
Chapter 5 describes vulnerable groups, including single parents, the elderly and special needs
groups. Specifically the following vulnerable groups: (i) 1 disabled dependent; (ii) 3 adults affected
by chronic disease (TB, intestinal problems); (iii) 13 elderly (defined as >60 years of age); (iv) 5 single
mothers with children. Separately and inclusive of the vulnerable people listed above, the Project
identified the 11 poorest families, poverty being associated with status as single parent or the elderly
not participating in productive activities and/or not receiving any support from children.
These people and their households have also been identified as the poorest households in the village.
It is noteworthy that many of these households have come into existence because of the Project

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decision to allocate new houses by families rather than households. Hence elderly people resident
with their children became entitled to receive a house.
Post-relocation, Resettlement recognizes that these households may have difficulties in reconstructing
their livelihoods and meeting the cost of operating infrastructure and services provided in the new
villages. Resettlement is addressing these concerns by:
(a) On-going monitoring of the welfare of these identified groups so as to be able to
respond appropriately if and when the need arises;
(b) Promoting the developing of a social support network system in the village
management cooperative;
(c) Providing specific assistance on a case-by-case basis as and when necessary.
Post-relocation it has been demonstrated that that the social support structures that existed prior to
relocation are still functioning. Specifically:

the majority of the vulnerable elderly people who received a house, have children
(or other relatives) resident in their houses and assuming responsibility the
household, including caring for their parents;

the widows and/or single mothers have participated in livelihood restoration

activities, first receiving support from relatives for opening of garden plots and
then successfully developing productive gardens.

The small number of vulnerable people allows ready monitoring and provision of assistance on a
case-by-case basis. In addition, post-relocation surveys to be carried out in 2005, 2007 and 2009
will also provide data regarding the identity and welfare of the poorest and otherwise vulnerable
groups.
10.4

Resettlement-Affected Community Links to Bay-level and Regional

Initiatives

10.4.1

Education
Construction of primary schools in Tanah Merah Baru, Onar Baru and Saengga and a secondary
school in Tanah Merah Baru will increase accessibility to education in all the resettlement-affected
villages. Nonetheless, specific Project support will be required to ensure that: (a) the new facilities
are integrated into the poorly resourced institutional environment that prevails in Bintuni Bay, and
(b) that the new district of Teluk Bintuni recognizes and provides resources to the new educational
facilities.
Project commitments to continuity in education will include:
(a) Coordination with the Department of Education and nonprofit education
providers to ensure adequate resources are allocated to new schools. In
April 2002 the Project discussed the status of the Resettlement Programs
educational facilities with the Department of Education. Further discussions will
provide the basis for developing an interim agreement addressing ownership and
management of facilities and staffing. Starting in 2005, the Project will assume
partial responsibility for meeting operational costs of these schools. This support
will continue for up to five years after which it is expected that the new facilities
will have become integrated into the existing institutional environment.

10 Social Services and Community Cohesion

221

(b) Provision of scholarships for selected students from resettlement-affected

villages. The Project is developing a Bay-wide scholarship program that will also
be available to members of the resettlement and host communities. Further
scholarships may be granted by the community itself through the CAP funds
provided to DAVs or, to a lesser extent, through the development Foundation
(described in Chapter 4).
Finally, Resettlement education activities will be progressively integrated with the ISP regency-level
(basic) education program.
10.4.2

Health
Construction of a clinic in Tanah Merah Baru and a health post in Onar Baru together with: (a) an
improvement in the standard of housing and (b) the provision of improved facilities and services in
water supply, drainage, sanitation, and waste disposal form the basis for significant improvements
in village health. However, as with education, specific Project support will be required to ensure:
(a) the new facilities are integrated into the poorly resourced institutional environment that prevails
in Bintuni Bay, and (b) that the new district of Teluk Bintuni recognizes and provides resources to
the new health facilities. In addition, the Project is implementing a Bay-wide health improvement
program that will also assist resettlement-affected communities.
The Tangguh Project, with the Department of Health, will discuss collaborative funding and provision
of basic health services for the resettlement-affected villages. As with education, should discussions
with local government not bear fruit, it is envisaged that the Project will assume partial responsibility
for meeting operational costs (i.e., staffing, equipment, materials) for a maximum of two years,
allowing new facilities to be integrated into the existing institutional environment.
The Bay-wide health program will support the design, planning and implementation of community
health projects addressing the key health threats identified by the baseline health assessment. (Refer
to Chapter 5 for the results of this assessment.) The program will: (a) support government health
authorities responsible for delivery of health services in the villages; (b) support improvement in
village water and sanitation systems leading to general improvement in public health and specifically
to a reduction in waterborne diseases; (c) reduce the incidence of mosquito-borne diseases through
a malaria eradication program, and (d) prevent spread of disease into Bay-wide communities from
the Project construction workforce. While not specifically targeted, the resettlement-affected
communities will benefit from the regional health programs.
Given the risk of an HIV/AIDS epidemic in Papua, the Projects Tangguh Community Health Unit
(TCHU) has developed a specific HIV program. This program commenced at the beginning of 2003
and has the five-year goals of limiting the impact of HIV/AIDS in the Birds Head area, limiting the
impact of HIV/AIDS and STD transmission on the Tangguh workforce and develop community capacity
to mitigate the impacts of the HIV epidemic. TCHU has been working, in collaboration with our GDA
partner, Family Health International (FHI), at the village, district and provincial levels to implement
strategies that will achieve these goals.
HIV prevention activities during 2003 included situational assessments in Fak-Fak, Kaimana, Bintuni,
Manokwari, a visit to Tangguh project by the FHI Papua Manager, sponsorship of a photo exhibition
and concurrent HIV awareness-raising activities associated with Cinta Papua, kitorang perangi HIV
in Jayapura, support for a representative from Manokwari to attend the National People Living HIV
and AIDS Peer Support Group Workshop in Jakarta and advocacy to regency government.
Additionally, TCHU began work to implement the BP Global Workplace HIV policy at Tangguh. This
included advocacy to BP Management, prevention of indiscriminate pre-employment HIV testing

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by contractors at Tangguh, awareness raising, educational activities and condom distribution to

employees in the Tangguh workforce, and development of a laboratory facility at Babo to enable full
capacity for Voluntary Counseling and Testing.
HIV prevention activities implemented in 2004 have included establishment of the TCHU HIV Program
Coordinator position, support for a series of workshops on capacity-building and strategic planning
for the KPAD (District AIDS Prevention Committee) in the new province of West Irian Jaya, advocacy
to the Bintuni district and regency governments, and development of a village-level HIV Awareness
raising program in the villages directly affected by the Tangguh Project. TCHUs forward planning for
HIV prevention and care includes further collaboration with Ministry of Health, FHI, Project Concern
International (PCI) and other local NGOs.
10.4.3

Managing Project-Induced Social Change

Like other natural resource extraction projects operating in remote, underdeveloped areas the Project
may induce adverse change. In general terms such change may include: in-migration (from within
and outside of Papua); a weakening of local customs and culture; a breakdown of social cohesion;
introduction of communicable diseases (including STDs); environmental deterioration stemming
from increased resource use; economic marginalization of local people as migrants compete for
employment and in business; increased demand and stress on basic services including housing,
water and sanitation, electricity, transport, education and health, and increased ethnic tension.
The inevitability of these impacts is a major Project concern for the Bay-wide population in general
as well as the resettlement-affected villages in particular. Accordingly a wide range of interventions
is planned to address these potential problems:
A workforce recruitment and management strategy that: (a) promotes local

recruitment and (b) establishes a recruitment procedure for migrant workers

seeking employment specifying that such employment can only be secured
through 'Regional Growth Centres' at Fak-Fak, Sorong, Bintuni and Manokwari;
Implementation of all ISP programs;
Support of the Diversified Growth Strategy that promotes spatial planning and

management of change for the Birds Head region (refer Section 10.4.4);
Broad-based socialization of potential Project-induced social changes through the

Diversified Growth Strategy promoting government and community awareness

of risks and advocating increased participation in managing change. Video, radio
and cartoon booklets will be utilized;
Promotion of community-based radio stations for the tribal groups proximate to

the Project area, and

Implementation of Project health and education sector support programs (see

Sections 10.4.1 and 10.4.2).

For the resettlement-affected villages specific interventions include:
Provision of house and land title in the name of the husband and spouse, with

restriction that houses may not be sold within a five-year period;

Promotion of community awareness, understanding and management of these

issues, with the aim of encouraging village government to develop specific

legislation for controlling in-migration;

10 Social Services and Community Cohesion

223

 Provision of scholarships, vocational training and small business development

training and capacity-building for resettlement-affected villagers to increase

general level of education and skills and thus their competitiveness;
Project monitoring of influx population and related impacts with appropriate

actions where potential problems are identified.

With regard to spontaneous in-migration, Resettlement recognizes that the process of village
construction has led to a substantial population influx. This has since been further exacerbated by
the prospect of employment on LNG construction-related activities. This issue is being addressed
through two other ISP programs, namely:
The Workforce Recruitment and Industrial Affairs program which includes a

recruitment system designed to keep migrants seeking employment in the

Regional Growth Centres of the Birds Head;
The Mitigation of In-migration and Adverse Induced Impacts program. This

program calls for a legal and social approach to address spontaneous inmigration and adverse induced impacts. The program will include partnership
with government, the promotion of legislative change (where appropriate),
the establishment of Monitoring Fora (including the resettlement-affected
villages), and the use of media to develop awareness of potential impacts and
recommend management strategies.
10.4.4

Diversified Growth Strategy (DGS)

The revenues generated from the Tangguh Project will accelerate economic growth and overall social
and environmental development in the province. To ensure that revenue decision-making is carried
out responsibly, the Papuan Government adopted the Diversified Growth Strategy (DGS). The DGS
is one of seven ISP components previously described in Chapter 1. The DGS seeks to ensure that
Project-area development benefits local communities, while promoting responsible diversified and
sustainable economic growth and spatial regional planning in the broader Birds Head region. The
DGS also seeks to strengthen human capacity and infrastructure in existing urban centres to reduce
the incentive for in-migration to the Tangguh site.
The DGS concept was developed and socialized in the Birds Head region through a series of
consultative meetings throughout YR2002. The Strategy was adopted on November 26, 2002, via an
MOU between Papuan Government bodies in the Birds Head, Tangguh Project and UNDP. The DGS
MOU mandates two major components:
(a) Under the MOU, the parties (Bappeda, other Papuan Government bodies, UNDP
and Tangguh Project) agreed to undertake preparatory activities between January
and December 2003 to establish an operational, long-term strategic program
of support for the DGS. This process resulted in the development, socialization
and adoption of the Implementation Agreement (a multi-year work plan).
The Agreement provides the management objectives framework and budget
requests from each of the parties mentioned above to:

 The DGS supports sustainable development using income from one industry source and location to
drive growth in a geographically broad region and in a range of industry and government.

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(i) Assist with the development of a Birds Head Regional Plan;

(ii) Sustainably develop existing urban centres (Manokwari, Fak-Fak, Sorong,

Teluk Bintuni) to minimize unwanted in-migration to the region;

(iii) Empower Papuan Birds Head businesses (increase Health, Safety &

Environment (HSE) standards, and improve competitiveness to bid on

Tangguh and non-Tangguh related work);
(iv) Contribute to Birds Head region human resource development (local

government, community and local business);

(v) Encourage improved natural resource management of renewable resources,

and
(vi) Align with and support on-going Project ISP Community Affairs and

Community Development Teams and community-based development

activities.
(b) The Diversified Growth Strategy is a complex and dynamic strategy. From the
outset the Tangguh Project recognized that it is not a development agency and,
as such, needed to create a partnership with existing development agency
partners to add value to on-going and new activities in the region. The public
private sector partnership that formed is a Global Development Alliance or
specifically Birds Head Alliance (BHA). It is worth noting that the DGS and the
BHA also contribute to the Tangguh LNG sanction process as documented in the
Tangguh AMDAL.
10.4.5

The Birds Head Alliance (2002-2005)

The Birds Head Alliance is a partnership between the Tangguh Project and USAID. The bipartite
approach of the Birds Head Alliance is an innovative effort that combines financial and technical
resources to build and strengthen local government and governance capacities and a sustainable
economic future in the region a vision, the Alliance development team realized, was impossible
to achieve by a single sector or player working in isolation. There was strong recognition that
socio-economic benefits were unlikely to flow to local communities unless local governments and
governance were strengthened, and that without such strengthening, the Project would likely be
seen as a substitute, de facto local government.
The BHA is comprised of seven focus areas: (i) micro-enterprise; (b) performance budgeting for local
governments; (c) performance planning for local governments; (d) health; (e) environment; (f) civil
society strengthening and (g) legislative strengthening. Each focus area has a Project representative
and a USAID representative (except for legislative strengthening, a USAID-led focus area and microenterprise, a Project-led focus group). The BHA decision-making body is called the BHA Steering
Committee and is comprised of the Project and USAID. The key sectors in allowing the Project to

 The Birds Head Regional Plan will use a USAID- and Project-sponsored planning tool called the
Bintuni Bay Atlas (developed through collaboration between technical subject matter experts and
local communities).
 The GDA is a USAID-initiated program with a three-year duration (20022005). The privatepublic
partnership between BP and USAID is recognized as a model GDA. The partnership brings resources
from both partners and receives additional funding from USAID Washington for the USAID Indonesia
Missions Papua activities. The BHA GDA is one of two GDAs currently operating in the Birds Head
region. The BHA will link with the Cocoa Alliance GDA to explore income restitution opportunities for
Papuan Birds Head communities.

10 Social Services and Community Cohesion

225

fulfill its commitment to the DGS are: micro-enterprise, performance budgeting and performance
planning for local governments; health; environment, and civil society strengthening. Regular updates
are compiled and distributed to the BHA, DGS partners and appropriate external audiences.
The BHAs seven focus areas support the DGS management objectives. Each of the DGS management
objectives is listed below together with the supporting BHA focus areas:
Development of a Birds Head Regional Plan (DGS) is supported by all BHA

focus areas;
Sustainable development of existing urban centres (Manokwari, Fak-Fak and

Sorong) to minimize unwanted in-migration to the region is supported by

micro-enterprise, performance budgeting and performance planning for local
governments, health, environment, and civil society strengthening;
Empowering Papuan Birds Head businesses (increase HSE, competitiveness)

is supported by micro-enterprise, performance budgeting and performance

planning for local governments, health, and environment;
Contributing to Birds Head region human resource development (local

government, community and local business) and minimizing in-migration is

supported by micro-enterprise, performance budgeting and performance
planning for local governments, health, environment, and civil society
strengthening;
Encouraging improved natural resource management of renewable resources

is supported by the environment, civil society strengthening, and the local

government performance planning and budgeting focus areas, and
Supporting community-based development activities (linked with ISP Community

Affairs and Community Development teams) are supported by civil society

strengthening, micro-finance, and environment programs.
ISP is seeking to further links with USAID through development of a subsequent GDA covering
governance, health and education for the period 2006-2010.
10.5

Conclusion
This chapter describes commitments to safeguard and develop the social environment of the
resettlement-affected communities post-resettlement. With regard to the relationship between
the communities and the Project, considerable progress has been made on developing an intimate
working relationship with the communities and developing mechanisms for dispute management and
resolution. Similarly there is awareness and understanding of the social aspects of resettlement and
activities have either already been set or planned. In addition to managing the disruption specifically
associated with the physical relocation of the community, a key challenge is to develop and promote
a sense of community that allows the villages to move forward post-resettlement. To facilitate this
process the resettlement-affected villages will be integrated with the Integrated Social Program
Directly Affected Village Recognition program that will continue to facilitate development over the
following decade.

 The Birds Head Regional Plan used a USAID/Tangguh Project-sponsored planning tool called the
Bintuni Bay Atlas (developed in collaboration between technical subject matter experts and local
communities).

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11. Implementation of the Resettlement and

Livelihood Reconstruction Programs
11.1

Introduction
This chapter describes plans for implementation of the Land Acquisition and Resettlement Action
Plan. At the time of completion of this document, the physical construction of the resettlement
villages and the physical relocation of the Tanah Merah community had been completed and the
Resettlement Program began to focus on the construction of the host villages of Saengga and Onar
Lama and reconstruction and development of the resettled and host villagers livelihoods.
To facilitate presentation, LARAP implementation can best be divided into two phases. The first
phase covering the period from initial consultations, village construction, establishment of the
income restoration and social programs, and physical relocation of the Tanah Merah community
occurred during 20012004. A thorough description of this phase is provided in preceding chapters.
The second phase, to be implemented during 20052009, focuses on construction of the host
villages of Saengga and Onar Lama and the reconstruction and development of the resettled and
host villagers livelihoods.
Fortunately the temporal division described above coincides with changes in the Tangguh Project
organizational structure relating to implementation of the Resettlement Program. During Phase I
LARAP implementation has occurred under the Access and Development (A&D) group while
implementation of Phase II will occur under the Integrated Social Program (ISP) group of the
Project.
This chapter first describes the Tangguh Project organizational structures and their changes in
relation to Resettlement programming for the entire implementation period (20012009) and

 It is noteworthy that while this temporal division is useful, livelihood and income reconstruction
and development activities commenced prior to the physical relocation of the village, with efforts
in agriculture, fisheries and microfinance being implemented between 20022004. These activities
are described in Chapters 9 and 10.

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227

subsequently describes the composition of the Resettlement Team. The second section presents the
implementation plans for construction activities in the host villages and the livelihood reconstruction
activities for the period 20042009.
11.2

Organizational Capacity

11.2.1

Organizational Structure
As described above the Resettlement Action Plan (LARAP) is being implemented in two phases: (a)
initial consultations, village construction, livelihood reconstruction and social programs and relocation
of the Tanah Merah community and (b) construction of host villages and on-going implementation of
livelihood reconstruction programs.
During the first phase, the Resettlement Team worked together with construction teams responsible
for the physical development of the resettlement villages (Tanah Merah and Onar Baru) under the
Access and Development (A&D) group. During the second phase the Resettlement Team will be
integrated into the Projects Integrated Social Program (ISP) group reflecting the socio-economic
nature of on-going work while simultaneously promoting integration into the Projects Bay-wide
socio-economic development programs.
Figures 11.1 and 11.2 show the organizational structure for the two phases described above.

11.2.2

Resettlement Team

11.2.2.1 Overview
The Resettlement Team assumes multiple roles including:
(a) Project representation;
(b) Projectcommunity liaison;
(c) Facilitation of village construction;
(d) Facilitation of the village move, and
(e) Design, planning and management of livelihood (income) and social restoration
programs across sectors.
Experience demonstrates that the key factor in working successfully with the resettlementaffected communities is a high level of trust. This only can be achieved through close and consistent
interaction with individuals and community groups. This imperative has significant implications on
team size, composition and operation method. Specifically, to be most effective the team must be
small, focused and readily accessible to all the communities.
Under the A&D group, the Resettlement Team comprised a Resettlement Manager and Livelihood
Development Specialist filling back-to-back roles. The Resettlement Manager and Livelihood
Development Specialist worked with a Livelihood Development Field Officer and Social Development
Field Officer, the former assuming responsibility for facilitating livelihood (income) restoration
programs and the latter for social development programs across the three resettlement-affected
villages. A Village Relocation Coordinator assumed overall responsibility to organize and coordinate
the physical relocation of the Tanah Merah community to Tanah Merah Baru and Onar Baru.

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Site Doctors

Health Coordinator

Technical Program
Development

Manager Projects
(+ Deputy Manager
Access & Development)

Cost Engineer

Admin assistant

Project Engineer

Environment Spec.

Projects
(Airstrip, Tanah Merah
Baru Construction,
Saengga
Construction)

Social Development

Resettlement
Manager

Safety Team Leader

Project Manager
Access & Development

Flight/Marine Coord.

HSE Engineer

Camp Manager

Babo Camp
Superindent

Logistics Coordinator

Figure 11.1 Organizational Structure during Village Construction and Relocation

11 Implementation of the Resettlement and Livlelihood Restoration Programs

229

Figure 11.2 Organizational Structure of Integrated Social Program Post-Resettlement

Coordinator (FR)

South Shore

Coordinator (FR)

CAFT Leader (FR)

North Shore

AMDAL Compliance
(FR)

Institutional Relations
(Jkta)

Team Leader (FR)

Community Affairs

Special Projects

Resettlement
Vocational Training
Basic Education
Microenterprise

Team Leader (Papua)

Govt Relations
External Affairs

Vice President (Jkta)

Deputy Vice President (Papua)

TANGGUH FIELD MANAGER

Tangguh Community Health Unit

Team Leader (FR)

Integrated Community
Based Security

ISP Performance
Management Unit
(Jkta)

Budget and
Administrative Control
(Papua)

Team Leader (FR)

Tangguh Industrial
Relations

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

230

Following relocation of the Tanah Merah community the integration of the Resettlement Team into
the Projects Integrated Social Program (ISP) will allow the Resettlement Program to be implemented
as a special project within the ISPs broader socio-economic program commitments. While the
Resettlement Team will be restructured so as to allow Project use of resettlement experience in
Bay-wide socio-economic program development and implementation, the composition of the team
will remain intact although the position of Facilities Manager will be added to the team. The Facilities
Manager will work with the communities to develop both familiarity and the ability to sustainably
manage and operate the new facilities and utilities.
Finally, a locally recruited workforce has supported the Resettlement Team. This workforce has
assumed responsibility for (a) nursery operations; (b) selective logging, and (c) garden clearing, while
simultaneously facilitating the many and varied activities that Resettlement implements. The local
workforce has been among the first beneficiaries of the training and employment impacts of the
Tangguh Project, and of its substantial and on-going investment in capacity-building. For example,
the nursery operations team has continuous interaction with the Resettlement Team, several of
whom have higher education degrees in agriculture. For selective harvesting, the Resettlement
Team has facilitated training in chainsaw operations, skidding, mobile sawmill operations, and wood
processing and storage.
Table 11.1 provides a summary of resettlement personnel by phase. Section 11.2.2.2 provides a
description of the roles and responsibilities of these positions.
Table 11.1 Summary of Resettlement Personnel by Phase (FTEs)

Position

Pre-Move

Post-Move

Resettlement Manager/
Livelihood Development Specialist

Livelihood Development Field Facilitators

Social Development Field Facilitators

Village Relocation Coordinator

Facilities Supervisor

TOTAL

The Resettlement Team does not assume responsibility for direct implementation of all LARAP plans
and component programs. A few examples follow. A separate Project team is responsible for delivery
of construction. For livelihood restoration programs the Resettlement Team contracts capable NGOs
(and other institutions) to implement programs in accordance with LARAP plans. Hence in agriculture
the Team has worked with the Department of Agriculture, Fakfak Regency; in fisheries the Team has
worked with individual trainers for motor maintenance and repair, a Java-based group working on
post-harvest processing of marine produce, etc, and in cooperative development and microfinance
the Team has worked with various NGOs and individual contractors with expertise in the field.
Furthermore the Project has been cognizant of the need to ensure an appropriate gender balance on
the team and especially ensure opportunities to work with village women. To this end the Resettlement
Team includes several women, including the Livelihood Development Facilitator (one fulltime position
staffed by two women in back-to-back rotation) and the Village Relocation Coordinator.

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231

11.2.2.2 Individual Roles and Responsibilities

(a) Resettlement Manager:

Ensure coordination between Project Senior Management, Project groups
(A&D, ISP, HSE, Environment, etc), and the Resettlement Team;

Provide overall management for Resettlement Team to ensure
responsibilities described above (i.e., Project representation; Project
community liaison; facilitation of village construction process; facilitation
of the village move and design, planning and management of income and
social restoration programs across sectors) are achieved;

Monitor and evaluate resettlement performance;

Implement corrective actions as indicated by performance monitoring, and

Manage A&D resettlement finances.
(b) Livelihood Development Specialist:

Design and plan income restoration programs;

Contract, manage and monitor partners responsible for implementing
income restoration programs and

Design and plan social development programs (e.g., gender, community
development/management, conflict management, and cultural
preservation).
(c) Livelihood Development Field Facilitators:

Facilitate contracting and management of partners responsible for
implementing income restoration programs;

Facilitate socialization and community participation in income restoration
programs including agriculture, fisheries access and development and
savings/loans and small enterprise development, and

Mentor and train development groups as appropriate.
(d) Social Development Field Facilitators:

Liaise with target communities, ensuring community issues and problems
are raised in timely fashion;

Facilitate development and/or implementation of all agreements pertaining
to resettlement, and

Develop, implement and manage social development programs.
(e) Village Relocation Coordinator:

Assume overall management responsibility for the physical relocation of the
Tanah Merah community;

Consult with village community in development and implementation of
move;

Ensure broad community awareness and understanding of plans for
physical relocation and the new resettlement village environment

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(e.g., facilities, agriculture, fisheries, etc) through use of development

communications;

Coordinate with A&D Resettlement Team to facilitate physical relocation,
and

Manage post-resettlement issues including identification of external
Facilities Manager.
(f) Village Facilities Supervisor

Promote awareness of new facilities and utilities amongst resettlers

Develop capacity to manage and operate new facilities and utilities
11.2.2.3 Advisory Panel on Resettlement
In 2001 an Advisory Panel on Resettlement (comprising two international experts in land acquisition
and population resettlement) was constituted to guide and independently monitor LARAP design
and implementation. The Advisory Panel has ensured that the Project LARAP is consistent with
international norms. Following completion of the LARAP document in 2005, the Panel will continue
its monitoring and quality assurance role.

11.3

Program Implementation

11.3.1

Overview
This section describes the implementation plans for sectoral programs for the period 20052009,
described in Chapters 9 and 10. LARAP implementation for the period 20012004 has been
described in previous chapters. Table 1.4 (page 8) presents a Gantt chart schedule for all resettlement
programs and activities. Subsequent sections provide narrative accounts supported by Gantt charts
as appropriate. The following guidelines are relevant to on-going program implementation:
Experience during 20012004 has demonstrated the limited utility of too specific

sectoral plans and schedules. Accordingly, for the period 20052009 only a
general plan is presented. Based on this general plan, at the end of each year,
the Resettlement Team will review progress to date and formulate a specific
annual plan for the subsequent year.
The Resettlement Team will integrate its resettlement with development

programming with ISP regency-wide development programming (e.g., health,

education, micro-finance, micro-enterprise development, vocational training)
as rapidly as possible. This reflects the commonality of Bay-wide development
needs, integrates the resettlement-affected villages into the Bay community, and
will help promote institutional solutions to basic needs issues that affect all the
Bays communities.
Whether at the Bay-level or specific to resettlement-affected villages, sectoral

program implementation will be subcontracted to external partners, such as

international and national NGOs, universities, government and other suitable
bodies with appropriate expertise and resources for implementing sectoral

11 Implementation of the Resettlement and Livlelihood Restoration Programs

233

activities and working in close collaboration with local communities. With regard
to resettlement, these partners will send field teams to the resettlementaffected villages to implement agriculture, fisheries access and development,
savings/loan and small enterprise development activities.
11.3.2

Design and Construction of Host Villages

For both Saengga and Onar Lama community consultations regarding village layout and house design
occurred in 2003. Final village layout and house design for Saengga and Onar Lama are provided in
Chapter 8.
Construction of Saengga will occur over an 18-month period commenced in October 2004. A
construction schedule is provided in Table 11.2. Preparatory work for the community-based housing
program for Onar Lama occurred throughout 2004 (demarcation of village layout, preparation of
warehouse and accommodation; stockpiling of wood, etc). Community-based construction started
in the second quarter of 2005 and will continue for 612 months. The Tangguh Project will provide
support for technical expertise, equipment, tools and materials.

Table 11.2 Schedule of Milestones for Saengga Renovation Project

Milestone

11.3.3

Target

Contract award

Sep 2004

Mobilization

Oct 2004

Camp construction completion

Oct 2004

Commence footing fabrication work

Nov 2004

Commence placing 1st footing on the ground

Nov 2004

Panel fabrication - 1st 20 units (block E/F/B)

Nov 2004

Panel fabrication - 2nd 26 units (block E/F/B)

Jan 2005

Panel fabrication - 15 units (block D)

Mar 2005

Panel fabrication - 7 units (block C)

Apr 2005

Panel fabrication - 5 units (block B)

May 2005

Panel fabrication - 11 units (block A1)

Jul 2005

Panel fabrication - 10 units (block A2)

Aug 2005

Commence wall panel erection

Nov 2004

Completed roof of 1st housing unit

Dec 2004

Block E/F/B ready for occupancy

Mar 2005

Block D ready for occupancy

Jul 2005

Block C ready for occupancy

Sep 2005

Block B ready for occupancy

Dec 2005

Block A1 ready for occupancy

Mar 2006

Block A2 ready for occupancy

Jun 2006

Village Facilities Management

The Project will employ a Facilities Manager for the 1824 month period following physical relocation
of the Tanah Merah community to Tanah Merah Baru and Onar Baru (i.e., in the 3rd quarter of
2004). The Facilities Manager is responsible for addressing construction quality issues, facilitating

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

development of appropriate management systems for services (electricity, water, waste), training
selected villagers to perform regular operations and maintenance, and promoting the development
of a healthy social dynamic. Finally the Facilities Manager promotes the establishment of village
management cooperatives through which the community can assume responsibility for management
of their new villages.
Resettlement will also require the Facilities Manager to work with the Saengga and Onar Lama
communities so as to ensure operation and maintenance of their new facilities and utilities.
11.3.4

Village Governance and Organization

The Resettlement Team works closely with representative committees in the target communities.
The phased approach to addressing resettlement and host villages has implied that such committees
have been formed at different timesthe Tanah Merah Resettlement Committee commenced work
in February 2002 and continues to be operational in Tanah Merah Baru; the Saengga Reconstruction
and Development Committee started work in January 2003, and an Onar Development Committee
(encompassing both Onar Baru and Onar Lama) was established in October 2004. The Resettlement
Team anticipates that these Committees will work during the construction period and in the immediate
period after completion of construction.
Resettlement will work together with the ISP village-level governance program to promote awareness
and development of functional legislated village-governance systems in the resettlement-affected
communities. The program will commence in 2006.
Following completion of village construction the Resettlement Team will promote development of
village management cooperatives in the resettlement-affected villages. In Tanah Merah Baru and
Onar Baru these cooperatives were established in the 4th quarter of 2004. The Project will facilitate
the development of requisite capacity in the cooperatives on a needs basis by seeking external
expertise in developing the capacity to manage cooperatives.

11.3.5

Agriculture
As indicated in Chapter 9 Tanah Merah households have had access to their new villages for planting
of crops prior to physical relocation. Nonetheless it remains that for Tanah Merah Baru and Onar Baru
the majority of the work associated with re-establishment of agricultural systems remains to be
done. Accordingly this remains an important activity following physical relocation from Tanah Merah.
For both villages (but particularly for Tanah Merah Baru where land is limited in quantity and quality)
longer-term concerns for sustainability of agricultural systems include erosion, soil fertility decline,
and increases in weed and pest populations. Finally, but equally importantly, agriculture is also seen
as a major livelihood activity that has the potential to contribute to household incomes. As such,
technical support for households with an orientation to agriculture will be an important activity.
In light of the above, the following activities are planned for Tanah Merah Baru and Onar Baru:
Throughout 20042008 the Project recruits government agricultural extensionists

to work in Tanah Merah Baru and Onar Baru. Project staff work together with
extensionists to develop a plan and an activity schedule. Using a Participatory
Technology Development (PTD)/ Farmer Field School (FFS) approach as well as
drawing on lessons from the group action model developed in Tanah Merah,
the extension workers will form agricultural extension groups based on the
distribution and allocation of vegetable and agroforestry lands. The groups will

11 Implementation of the Resettlement and Livlelihood Restoration Programs

235

initially focus on establishment of agricultural systems and progressively work

towards the longer-term sustainability issues identified above. Group action,
model garden development, field trials and field visits are part of the repertoire
of activities that the extensionists will use to promote participation. Over time
a number of additional subject areas should be addressed, including household
nutrition and kitchen gardens, commercial vegetable production including
savings/credit options, etc.
Finally, in the long term a number of households may express an interest in

developing livestock enterprises (chickens, goats) and/or one or other form

of estate cropping (typically coconut, nutmeg, candlenut but also fruit tree
orchards). The Project will provide support for these households during 2006
2008.
The impacts of resettlement on the agricultural systems of the host villages are minimal by comparison
to the impact of physical relocation. Nevertheless, as part of the Projects investment in accelerating
the pace of development of the resettlement and host communities, the Project will support the
distribution of agricultural tools, vegetable and field crop seed and fruit trees to Saengga and Onar
Lama after construction is completed in 2006. In addition, if interest exists, agricultural extensionists
will also be contracted to work in these villages.
Finally, the plant nursery established in Tanah Merah Baru to facilitate resettlement will continue
operations between 20042008 to support agricultural development activities in the resettlementaffected villages and throughout the Bay.
Figure 11.3 Activity Schedule for Agricultural Development in Resettlement-Affected Villages

Activity

2005

2006

2007

2008

Agricultural extension

Production

Vegetable gardens

Agroforestry

Livestock

Estate cropping

Sustainability

Nursery

Development

11.3.6

2004

Fisheries Access and Development

As indicated in Chapter 9, the overall goal of the fisheries access and development program for
resettlement-affected villages is to restore and sustainably increase harvest levels and income streams
derived from marine resources. This is to be achieved through a multi-pronged strategy that:
(a) Mitigates the adverse effects of reduced access to marine resources;
(b) Promotes the development of markets for marine produce;

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

(c) Facilitates capacity-building amongst fishermen in areas such as boat-building,

motor maintenance and repair, post harvest value-adding processing of marine
produce, etc, and
(d) Facilitates development of fisheries-based enterprises.
As with agricultural development, resettlement is associated with a short-term and immediate need
to re-establish fishing activities (i.e., boats, access to fishing grounds). In parallel, the longer-term
prerogative needs to be addressed.
During the period leading up to physical relocation, it was clear that the number of households
engaging in fisheries and, relatedly, the number of boats and motors owned, had fallen dramatically
below that measured in the 2001 survey. Given this situation, Resettlement will prioritize: (a)
facilitating villagers construction of traditional boats by providing working groups with a set of tools
and (b) providing households with a motor for their boat. This activity commenced in 4th quarter 2004
and will continue through 2005.
At the same time, the Resettlement Team will continue efforts to facilitate market development.
Specifically, an operational base for a commercial prawn company was built in Tanah Merah Baru
in the 3rd quarter of 2004. Thereafter the Resettlement Team will endeavour to facilitate agreement
between a commercial prawning company and the village with a view to having an alternative
company in operation in 2005.
Finally, for the period 20042008 on-going capacity-building activities are being conducted in the
resettlement-affected villages. This includes training in post-harvest processing and value adding of
marine produce, maintenance and repair of motors, etc. The general implementation plan targets
additional training every four to six months.
Longer-term development initiatives address access and sustainability. First, with the establishment
of the marine safety exclusion zone, villagers no longer have access to fishing grounds in the
immediate vicinity of the old village while access to old fishing grounds east of the plant has been
reduced. This is to be mitigated in four ways:
The construction of an access path along the plant fence line will allow villagers

to walk from Tanah Merah Baru to Manggosa. This will be completed in 2006.
A fishing camp will be established in Manggosa in 2006.
Each clan will be provided with a speedboat to facilitate access to the east of

the plant. In this way, traditional fishing boats and equipment may be stored in
Manggosa and transport between the new village and Manggosa managed by
each clan. This will commence in 2006.
Bona fide fishermen (i.e., those seeking to make a livelihood from fishing) will

be offered small business development loans to build and/or purchase larger

boats. This activity will follow on from current boat-building and continue during
20052008.
With increasing physical capacity the sustainability of artisanal fishing grounds will need to be
promoted. Following completion of the assessment of the Bay marine environment in 2004, the
Project works with stakeholders to identify mechanisms to promote sustainability. It is anticipated that
this initiative will lead to village-level programs promoting awareness of sustainable management.

11 Implementation of the Resettlement and Livlelihood Restoration Programs

237

Figure 11.4 Activity Schedule for Fisheries Access and Development in Resettlement-Affected Villages

Activily

2005

2006

2007

2008

Access

(a) Immediate

Tools for boat building

Motors

Fishing camp at Manggosa

Clan speedboats

Lg fishing boats (ketinting)

Capacity-building

Markets

Sustainability

(b) Long-term

11.3.7

2004

Savings/Loan and Small Enterprise Development Program

Resettlement initiatives in micro-finance and small enterprise development are forerunners of
Bay-wide initiatives. To this end the Kelompok Simpan Pinjam (KSP) and small business initiatives
(described below) started in the resettlement-affected villages will be integrated into the Bay-wide
programs in 2005.
As described in Chapter 9 savings/loans groups have been established in Tanah Merah and Saengga.
Following the physical relocation of Tanah Merah, the Onar community has requested that a separate
KSP be established to service the Onar community. YPPWP will be contracted to facilitate this
transition in the first half of 2006. It is also apparent that the supervisors, managers and members
of the KSP need further capacity-building to clarify their rights and responsibilities. Trainings will be
conducted in the first half of 2005. Regular monitoring and capacity-building as and when required
will be provided during 20052008. YPPWP will be contracted to conduct further training and provide
on-going mentoring.
On-going development of the KSP will benefit from: (a) increased incomes and savings from households
working in LNG construction activities, and (b) integration into a Bay-wide KSP framework that links
villages to a community bank being established in Bintuni under the auspices of ISP support.
As indicated in Chapter 9, following relocation Resettlement will support Small Enterprise
Development in the four resettlement-affected villages. Working together with the ISP microenterprise development program, Resettlement will facilitate enterprise development training and
mentoring activities in the resettlement-affected villages. These activities will commence in 2006.
SED mentors will promote program awareness and encourage household initiatives in development
of small enterprise proposals. Sectors for consideration include transport, trade (marketing and
supplies), and general services (furniture, tailoring, hairdressing, home-products, motor repair,
village services, etc). Applicants will be required to participate in a small business development and
management training workshop (including feasibility studies, income projections, business plans)
during which they will develop business proposals for submission to the program.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

11.3.8

Vocational Training
As described in Chapter 9, various stakeholders (local government and ISP) will develop a vocational
training centre on the north shore of the Bay in 2005. Subsequent to the development of the centre,
ISP will subcontract the Vocational Education Development Centre (VEDC) to provide training
curricula across a broad range of subjects including masonry, carpentry, electrical plumbing, home
economics, etc. In the longer term vocational training will respond to the developing economy of the
Bay thereby ensuring that there is a local workforce capable of participating in the economy and in
so doing also addressing the reduction in employment opportunities that will inevitably take place as
LNG construction draws to a close.
For the resettlement-affected villages, for each year during 20052009 the Resettlement Team
will identify 15 suitable candidates to participate in the training opportunities offered at the centre.
Particular attention will be given to two groups of people, namely (a) youth who will not progress in
the formal education system but who have the potential to participate in trade-based employment,
and (b) women.

11.3.9

Education
As described in Chapter 10, the Resettlement Team has/will:
(a) Ensure the operation of primary school education services in Tanah Merah Baru
at the time of the move;
(b) Provide (if required) transitional support to education service providers in
resettlement-affected villages to ensure all schools are operational as soon as
possible;
(c) Facilitate the integration of the resettlement-affected villages into the Projects
Bay-wide education program, and
(d) Facilitate the integration of the newly constructed education facilities in the
resettlement-affected villages with services provided by the government of
Kabupaten Teluk Bintuni.
Under the ISP, Resettlement will provide grant funds to facilitate the start-up and operation of the
secondary high school and dormitory in Tanah Merah Baru and the primary school in Onar Lama.
Between July 2004 and July 2005, ISP and Resettlement discussed management of these educational
facilities with education service providers in the Bay (namely government and YPPK or YPK) with the
aim of identifying and contracting a service provider that will commit to starting up the schools by
July 2005 (i.e., the start of the Indonesian school year). Grant funds will be provided for a five-year
period during 20052009.
In addition to specific assistance to the schools, the resettlement-affected villages will also benefit
from the Projects Bay-wide education program.

11.3.10 Health
As described in Chapter 10, to counter the risks to health the Resettlement Team has/will:
(a) Ensure the availability of government health service staff at the time of the
move;

11 Implementation of the Resettlement and Livlelihood Restoration Programs

239

(b) Provide transitional support (if required) for health service providers through
December 2005;
(c) Facilitate the integration of the resettlement-affected villages into the Projects
Bay-wide health program, and
(d) Facilitate the integration of the newly constructed health facilities in the
resettlement-affected villages with services provided by the government of
Kabupaten Teluk Bintuni.
The Project Tangguh Community Health Unit (TCHU) is implementing a Bay-wide health program.
The resettlement-affected villages health facilities will also participate in this program.
11.3.11 Foundation
Chapter 4 describes the Projects commitments to support for a development foundation. In 2006
the Project will:
(a) Continue socialization of the Foundation with the primary beneficiaries (i.e.,
three land-selling clans) by inviting Papuans who are currently working with other
Foundations to discuss the concept and implementation of foundations with clan
members;
(b) Contract services to advise the Project on investment strategies for the funds
provided to the Foundation, and
(c) Contract services to implement the Foundation. The contracted party will
be responsible for establishing the structure and working mechanism of the
Foundation, developing capacity of local staff and ensuring field-level awareness
of the implementation mechanisms. With Project support, the Contractor will
work for a three to five year period.
11.3.12 Monitoring and Evaluation
LARAP implementation continues until 2009. A monitoring and evaluation framework to measure
performance and allow Resettlement to respond to the changing socio-economic environment and
any issues or problems that may arise is described in Chapter 13. The framework calls for continuous
internal monitoring and reporting and the development of annual work plans in light of progress,
needs, and lessons of past implementation. External monitoring and evaluation will serve to further
verify and analyze these results, provide guidelines for responding to issues/problems, and more
generally serve a quality assurance purpose, ensuring that the Project is achieving the standards it
has committed to in this document.
11.4

Linkages to Government
In general terms government has lacked political stability, staff, resources and capacity to effectively
participate in the delivery of resettlement objectives in a timely fashion. Nonetheless post-relocation,
as the Project aims to promote integration of the new settlement into existing institutions, stronger
linkages with government (including the provision of training and resources where necessary) are
warranted. Specific improvements sought include:
(a) Infrastructure: Government needs to be involved in ensuring appropriate permits
and operating licenses exist for infrastructure and services. The Project will

240

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

hand over key infrastructure related to education and health service delivery to
the regency government to safeguard on-going utilization of facilities for their
intended purposes. It is anticipated that government will allow education service
providers to utilize infrastructure with the understanding that responsibility for
maintenance and repairs will lie with the provider.
(b) Services: Government is expected to assume responsibility for staffing and
resourcing the provision of health and, to a lesser extent, education services.
Resettlement will provide transitional financial assistance for staffing of health
services. Longer-term operational assistance (five years) will be made available
to education service providers asked to operate new facilities.
(c) Training: Government will be asked to participate in the delivery of a number of
sectoral programs, e.g. village-level good governance and agriculture. Provided
interest and capacity exists, government may be contracted to deliver training.
In addition the Project sectoral development programs (water and sanitation,
health, education) will engage government as key stakeholders in medium-tolong-term service delivery.
Progressive engagement and capacity-building with government is seen as a key component
of replicating successful programs once Project revenue streams are channeled from central to
provincial and local governments.
11.5

Conclusion
This chapter outlines the organizational capacity and schedule for implementing the Resettlement
Program for the period 20052009. An initial focus on construction and resettlement required that
the Resettlement Team join the A&D group. With construction completion, the Resettlement Team
has been integrated with the ISP group to continue implementation of development and monitoring
and evaluation activities. Overall, while the small scale of resettlement simplifies implementation,
the Resettlement Team is faced with significant challenges in meeting multiple responsibilities in
the scheduled time frame. Foremost among these challenges are the needs to work in multiple
sectors in three villages and the difficult social environment into which development interventions
are introduced.

11 Implementation of the Resettlement and Livlelihood Restoration Programs

241

242

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

12. Budget
12.1

Introduction
This chapter presents the budget for the Land Acquisition and Resettlement Action Plan. The
resettlement plan is budgeted as a nine-year activity commencing with land acquisition. Following
land acquisition and compensation, two activity sets were put in motion: preparations for design
and construction of resettlement-affected villages, and community-development initiatives aimed
at income reconstruction during and post-resettlement. Following completion of construction and
physical relocation, community-development initiatives and post-resettlement social support for
facilities management, education and health are planned and budgeted through 2008 allowing
villagers to settle into, and significantly develop, their new environment. A final Project audit is
scheduled to occur in 2009.

12.2

Budget
Table 12.1 presents a summary of the Land Acquisition and Resettlement Action Plan budget and
Table 12.2 presents the full budget. The total budget allocated for resettlement-affected villages is
US$31,126,451. Land acquisition and compensation is the largest line item, representing 70.9% of
the total budget. This cost reflects the monetary and in-kind compensation package offered to the
land-selling clans and the resettlement-affected communities. It also reflects the Project commitment
to an inclusive consultation process, high quality construction, provision for healthy homes with
electricity, running water and sanitation, and a greater number and improved standard of public
facilities (e.g., schools, places of worship, etc). There were also additional costs directly attributable
to Project needs (i.e., scheduling priorities and needs, enforcement of national standards, excellent
safety and environmental standards, purchase of verifiably legal timber, installation of a solar power
generation system, BP quality assurance, etc). These costs are Project-incurred costs, many of
which also benefit the resettlement and host communities but nevertheless are not charged to the
Tangguh budget for resettlement. Consequently they have been excluded from the costs of village
re-construction. The resettlement budget includes compensation costs plus additional investments,
over and above compensation, to ensure development of living standards of the resettlement
population.

12 Budget

243

Table 12.1 Summary of Land Acquisition and Resettlement Action Plan Budget, YR19992009

Line Item

Budget (US$)

22,044,766

70.8

Consultation and Design

303,758

1.0

Physical Move

262,500

0.8

1,034,250

3.3

Village Committees

350,500

1.1

Community Development Agriculture

527,900

1.7

Community Development Fisheries Access and Development

674,200

2.2

Community Development Savings/Loan & Small Enterprise Development

104,600

0.3

Community Development Vocational Training

375,000

1.2

Monitoring and Evaluation

470,000

1.5

Operations

2,149,300

6.9

Contingency (10%)

2,825,627

9.1

31,126,451

100.0

Land Acquisition and Compensation

Post-Resettlement Social Support

TOTAL

Initiatives aimed at achieving resettlement with development (i.e., mitigating the adverse impacts
of resettlement and/or promoting development) represent 9.8% of the budget.
In addition to the resettlement-related benefits outlined in the budget, both Tanah Merah and
Saengga will join the ISP DAV CAP program providing a budget allocation of US$30,000 each year
for 10 years to each village. These development funds represent investment resources additional to
the resettlement budget. A participatory community-based process will allow decisions regarding
allocation and use of budgets for development initiatives. Given that the resettlement villages will
have complete new infrastructures, the CAP budget can be used for human resource capacitybuilding initiatives.
The Tangguh Project finances the above budget in full. For instance, work contributed by community
members to village reconstruction is not treated as an in-kind budget component provided by
the community but has been paid as wage employment by the Tangguh Project. By virtue of the
1999 resettlement agreements, no other community contributions were required. A participatory,
consultative approach is utilized to design community development initiatives. Participation is
voluntary.
A post-relocation monitoring program has been designed and will be implemented to ensure that
the resettlement with development program achieves its goals and objectives. The monitoring and
evaluation program is described in Chapter 13.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 12.2 Detailed Land

Acquisition and Resettlement Action Plan Budget, YR19992009

, in US$
Item

2001

2002

2003

2004

2005

2006

2007

2008

2009

TOTAL

1 LAND ACQUISITION AND COMPENSATION

A Cash Compensation for Land (1999)
51,240

51,240

B In-kind Compensation
Tanah Merah Baru
Construction (excluding
special BP costs)

5,470,000 4,730,000

Onar Baru Construction

700,000

Saengga Renovation
Project
Onar Lama

800,000

1,500,000

700,000 5,000,000 2,000,000

7,700,000

10,000

150,000

160,000

C Development Foundation
Initial disbursement

100,000

100,000

Establishment of Fund

750,000

250,000

250,000

250,000

250,000

250,000 2,000,000

D Other Compensation
Compensation for sago
Compensation for
productive plants (crops
and fruit trees) - plant site
Compensation for
productive plants (crops
and fruit trees) village sites

7,500

7,500

17,993

17,993

1,532

4,000

2,500

8,032

200,000

100,000

Hak Ulayat Payments for

Forest Trees on LNG site
and TMB
1 SUBTOTAL

76,733

0 6,171,532 7,094,000 5,602,500 2,350,000

300,000
250,000

250,000

250,000 22,044,766

2 CONSULTATION AND DESIGN OF RESETTLEMENT-AFFECTED VILLAGES

A Design
UNIPA Study - Tanah
Merah

5,000

5,000

Model House
Development

50,000

50,000

Village consultations - TMB

86,335

86,335

Village consultations Saengga

153,543

153,543

Village consultations Onar Baru

8,880

8,880

5,000

136,335

162,423

303,758

LCT

24,000

24,000

Packing Materials

20,000

20,000

Catering

28,500

28,500

2 SUBTOTAL
3 PHYSICAL MOVE

Village Demolition

10,000

Food Security - Fresh

Goods (6 months)

33,000

Food Security - Dry Goods

61,000

61,000

122,000

Development
Communications

15,000

10,000

25,000

15,000

186,500

61,000

262,500

3 SUBTOTAL

12 Budget

245

Item

2001

2002

2003

2004

2005

2006

2007

2008

2009

TOTAL

4 POST-RESETTLEMENT SOCIAL SUPPORT

A Village Facilities Management and Operation
Facilities Manager

17,500

22,500

22,500

Training of Villagers

8,250

62,500
8,250

Tools

10,000

10,000

Fuel

18,000

18,000

36,000

Capacity-building

10,000

10,000

20,000

SD TMB

10,000

SD Onar

7,500

20,000

20,000

20,000

20,000

20,000

107,500

SD Saengga

5,000

SMP TMB

100,000

90,000

90,000

90,000

90,000

460,000

Dormitory

75,000

60,000

60,000

60,000

60,000

315,000

86,250

245,500

192,500

170,000

170,000

35,000

20,000

20,000

15,000

21,000

42,000

30,000

108,000

1,000

B Support
Education

Health
4 SUBTOTAL

170,000 1,034,250

5 VILLAGE COMMITTEES
A Tanah Merah Resettlement Committee
Establishment and
Capacity-building
NGO Mentoring
Operations

35,000

B Saengga Reconstruction and Development Committee

Establishment and
Capacity-building

1,000

Study Tour

10,000

10,000

NGO Mentoring

25,000

25,000

Operations

5,000

42,000

30,000

42,000

20,000

139,000

2,500

10,000

12,500

109,000

62,500

52,000

20,000

350,500

C Onar Development Committee

Operations
5 SUBTOTAL

50,000

57,000

6 COMMUNITY DEVELOPMENT - AGRICULTURE

A Supporting Studies and Activities
Agriculture Study

17,500

17,500

URS Market Study

35,000

35,000

B Physical Development of Garden Areas TMB and Onar

i Vegetable Gardens
Identification

5,000

5,000

Clearing

30,000

30,000

Selective Harvest Plan

including Tree Marking

64,000

64,000

Felling and Milling

57,000

100,000

157,000

Land Division

15,000

15,000

2,000

6,000

8,000

8,000

8,000

8,000

40,000

ii Agroforestry Gardens

C Capacity-building
Training

246

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Item

2001

2002

2003

2004

2005

2006

2007

2008

2009

TOTAL

D Material Assistance
Tools - TMB, Saengga, OL

10,000

5,000

5,000

20,000

Nursery - TMB, Saengga,

OL

27,400

15,000

15,000

7,500

7,500

72,400

10,000

4,000

4,000

2,000

2,000

15,000

10,000

10,000

35,000

Vegetable and Field Crop

Seed in TMB, OB and
sbsqtly in all

22,000

Fruit Tree Distribution for

TMB and OB Agroforestry
Gardens and Saengga and
Onar

Materials for Estate Crop

Development for TMB
and OB

5,000

5,000

5,000

15,000

17,500

193,000

183,400

42,000

47,000

22,500

22,500

527,900

6 SUBTOTAL

7 COMMUNITY DEVELOPMENT - FISHERIES ACCESS AND DEVELOPMENT

A Supporting Studies and Activities
URS Fisheries Study

15,000

15,000

See
above

Source Model Boats

2,000

2,000

Trial Model Boats

2,000

2,000

Build selected boat design

20,000

20,000

20,000

20,000

20,000

100,000

Prawn Catching and

Processing

5,000

5,000

Prawn Catching Trial

(fishing group)

7,300

7,300

Motor Repair and

Maintenance

1,300

3,900

4,000

4,000

4,000

4,000

21,200

Training Boat-building for

8 villagers (TM, Saengga,
Onar)

2,000

14,700

16,700

Post-Harvest Processing of
Marine Produce

20,000

10,000

Other

10,000

10,000

10,000

10,000

40,000

25,000

25,000

Boats

20,000

140,000

75,000

50,000

25,000

50,000

360,000

Camp - Manggosa River

50,000

50,000

15,000

17,600

83,600

236,000

109,000

84,000

59,000

70,000

674,200

URS Market Study

B Fisheries Access

C Capacity-Building

D Markets
Dev of Fisheries Markets
E Material Assistance

7 SUBTOTAL

8 COMMUNITY DEVELOPMENT - SAVINGS/LOANS AND SED

Bay-wide Microfinance and
Micro-Enterprise Study

20,000

20,000

Financial Management
Training

5,000

5,000

5,000

15,000

Savings/Loan Program
On-the-Job Training and
Mentoring

4,200

4,200

4,200

4,000

4,000

4,000

4,000

28,600

SED Program Mentoring

6,000

6,000

6,000

6,000

6,000

6,000

36,000

SED Grant

10,000

5,000

5,000

5,000

5,000

5,000

35,000

8 SUBTOTAL

29,200

25,200

20,200

15,000

15,000

15,000

15,000

104,600

12 Budget

247

Item

2001

2002

2003

2004

2005

2006

2007

2008

2009

TOTAL

9 COMMUNITY DEVELOPMENT VOCATIONAL TRAINING AND EMPLOYMENT

Vocational Training

75,000

75,000

75,000

75,000

75,000

375,000

75,000

75,000

75,000

75,000

75,000

375,000

Internal Monitoring

2,000

2,000

2,000

2,000

2,000

10,000

Independent External
Monitoring

50,000

64,000

64,000

64,000

64,000

64,000

370,000

Baseline Update and

Monitoring/Evaluation
Surveys

30,000

30,000

30,000

90,000

50,000

96,000

66,000

96,000

66,000

96,000

470,000

Resettlement Manager

35,000

200,000

200,000

200,000

30,000

30,000

30,000

30,000

30,000

Development Specialist

75,000

150,000

150,000

125,000

25,000

25,000

25,000

25,000

25,000

Livelihood Development

20,000

40,000

40,000

25,000

25,000

25,000

25,000

25,000

Social Development

20,000

40,000

40,000

25,000

25,000

25,000

25,000

25,000

Relocation Manager

5,000

15,000

2,500

20,000

20,000

20,000

30,000

15,000

40,900

40,900

20,000

20,000

20,000

20,000

11 SUBTOTAL

112,500

410,000

495,900

480,900

155,000

140,000

125,000

125,000

105,000 2,149,300

TOTAL

244,233

635,835 7,193,655 8,252,350 6,585,200 3,014,500

837,500

782,500

781,000 28,296,774

301,450

83,750

78,250

78,100 2,829,677

699,419 7,913,021 9,077,585 7,243,720 3,315,950

921,250

860,750

859,100 31,126,451

9 SUBTOTAL
10 MONITORING AND EVALUATION

10 SUBTOTAL

11 OPERATIONS
A Salaries

Translator
B Local Staff
Program Support

248

Contigency (10%)

24,423

GRAND TOTAL

268,657

63,584

719,366

825,235

658,520

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

13. Monitoring and Evaluation

13.1

Introduction
The ADB and WB policy on resettlement tasks the implementer with adequate monitoring and
evaluation of the activities set forth in the resettlement instrument. Similarly, the International
Finance Corporation (IFC) guidelines for resettlement state that the Project engaged in resettlement
must sponsor monitoring and reporting on the effectiveness of their Resettlement Action Plan (RAP)
implementation, including the physical progress of resettlement and rehabilitation activities, the
disbursement of compensation, the effectiveness of public consultation and participation activities
and the sustainability of income restoration and development efforts among affected communities.
Table 13.1 summarizes World Bank and IFC guidelines for resettlement monitoring. This chapter
utilizes these guidelines to develop a monitoring and evaluation framework for the LARAP.
The Monitoring and Evaluations (M&E) framework defines the means of assessing the overall
success of the RAP and the success of individual programs outlined therein. To do so requires:
(a) the identification of suitable indicators; (b) their measurement at appropriate intervals; (c) the
creation of mechanisms to analyze M&E data against a baseline, and (d) the setting of a system
to regularly respond to M&E results by adapting program design and/or modifying implementation
arrangements.
The M&E framework outlined in this document (the implementation LARAP) integrates the Project
AMDAL commitments (as specified in the RKL Appendix G) and the M&E guidelines contained in
the RPL as well as additional commitments described in this document.

 ADB ( 2003). Operations Manual Section F2/OP Involuntary Resettlement; ADB (1998). Handbook
on Resettlement A Guide to Good Practice; World Bank Operational Policy on Resettlement, 4.12
Article 24, December 2001.
 Page 49, IFC Handbook for Preparing a Resettlement Action Plan, April 2002.

13 Monitoring and Evaluation

249

13.2

Use of Monitoring and Evaluation

The M&E process has three major functions.
First, monitoring the delivery of Project activities provides information about progress and serves
to verify that the Project is implementing the LARAP in accordance with stated commitments
(entitlements, activities, budget) and implementation schedule.
Table 13.1 World Bank and IFC M&E Guidelines for Resettlement

World Bank Guidelines

IFC Guidelines

Clear methodology

Internal/performance monitoring process

Key monitoring indicators derived from

baseline data

Key indicators derived from the baseline survey

Institutional arrangements for monitoring

Institutional and financial arrangements

Frequency and content of reporting

Frequency of reporting and content for internal monitoring

Process for integrating feedback from

monitoring into implementation

Process for integrating feedback from internal monitoring

into implementation
Methodology for external monitoring
Key indicators for external monitoring
Frequency of reporting and content for external monitoring
Process for integrating feedback from external monitoring
into implementation
Arrangements for final external evaluation

Second, they will allow the Project to assess whether the LARAP and its specific program
initiatives are achieving their stated goals and objectives and identify the outstanding problems/
issues in implementation thereby allowing the Resettlement Team to adapt program design and
implementation. For instance, often those who manage the labour departments of large-scale
projects do not work closely with the staff who manage the implementation of LARAP. Many
households may fall through the cracks in the system. Accordingly it is crucial to monitor whether or
not the LNG plant actually recruits from resettlement-affected households as the LARAP requires.
Internal monitoring carried out by the Resettlement Unit, the independent monitoring by the
Advisory Panel and periodic surveys conducted by an independent M&E group can ensure that the
course of developmental action specified in the LARAP is actually followed.
Third, the monitoring process will be used to assess whether livelihoods, living standards and incomes
of resettlement-affected communities are improved to a level over and above pre-displacement
and land acquisition conditions. The Project will track LARAP outcomes and impacts against the
baseline conditions of the affected population prior to economic and physical displacement. The
socio-economic censuses of Tanah Merah, Saengga and Onar (20012002) will serve as the primary
baselines against which the success of the LARAP will be measured.
13.3

Use of Indicators in
Monitoring and Evaluation
The M&E framework encompasses: (a) input and process indicators that reflect Project resource
commitments toward resettlement and the implementation plans for specific sector programs and
activities, and (b) performance indicators that allow the Project to assess the delivery and success
of the aforementioned programs. The indicators are as follows:

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

 Input indicators measure resources in terms of people, equipment and

materials that go into the community development plans described in the

LARAP. Examples of input indicators in the LARAP include: (a) funding of
various LARAP activities, (b) the establishment of a Community Development/
Resettlement Team in the Tangguh Project and staff work inputs, and (c)
training programs offered, (d) educational work for promoting savings, a.o.
Process indicators measure the change in the quality and quantity of access

and coverage of the activities and services. Examples of process indicators in

the LARAP include: (a) increased capacity of government and NGOs to provide
services; (b) the establishment of channels for stakeholder participation in
LARAP implementation, and (c) setting up of regular savings accounts, a. o.
Output indicators measure the results of activities and services produced with

the inputs. Examples of output indicators include: (a) creating and maintaining
a database for tracking employment; (b) creating new economic opportunities
providing alternatives for loss of income, and (c) numbers of people trained, a. o.
Outcome indicators measure the changes in behavior, skills, incomes and

capacity resulting from resettlement activities and outputs. Examples of

outcome indicators include: (a) family and individual income levels; (b)
individual and overall employment rates, and (c) upward changes in the types
of professional work performed by men and women resettlers employed by the
LNG Project.
Impact indicators measure medium- to long-term changes in the living

standards, behavior and attitudes of the target group resulting from

resettlement activities.
In the near term, measurements of input, process and output indicators are feasible and
important since these define whether the planned level of effort is being achieved and whether
early implementation experience is in line with anticipated results. The success of the LARAP,
however, is measured by outcome and impact indicators. These indicators establish: (a) whether
the developmental resettlement programs are having the intended results (outcomes/impacts) on
social and economic conditions, social groups such as women and the elderly, and social institutions
such as the family and communities; (b) whether individuals, families and social groups included in
the resettlement are able to restore and maintain their livelihoods, and (c) whether positive results
can be maintained over the medium and long term.
Clearly, the results measured by outcome/impact indicators are the ultimate measures of the
LARAPs success in restoring and improving livelihoods. If affected families live in better homes,
enjoy access to a range of productive infrastructure, diversify their economic activities and exceed
their pre-Project level of incomes and thus reduce their livelihood risks, learn to prevent exposure to
pandemics and improve their health, and attain better education, LARAP will have not only achieved
desired outcomes (increased incomes), but will have also made sustainable improvements in
peoples lives.
ADB guidelines specify M&E parameters including delivery of entitlements; restoration of living
standards; livelihood restoration; effectiveness of consultation and grievance management, and
levels of Affected People (AP) satisfaction. These parameters are addressed in Table 13.2 which
presents a list of Project-specific output and outcome indicators for monitoring and evaluation of
the LARAP.

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251

13.4

Internal Monitoring and Evaluation

Internal monitoring and evaluation has the following objectives:
To measure and report progress against LARAP schedule;
To verify that agreed entitlements are delivered in full to affected people;
To identify any problems, issues or cases of hardship resulting from the

resettlement process, and to develop corrective actions or, where problems are
systemic, refer them to management;
To monitor effectiveness of the grievance system;
To periodically measure satisfaction of Project-Affected People.
Table 13.2 Monitoring and Evaluation Indicators

252

LARAP
Commitment

Indicators
Inputs/Processes/Outputs
(data collected/reported monthly)

Outcomes/Impacts
(data collected every 6 months or annually)

Compensation and
Other Entitlements

Amount of moving allowances provided

Financial resources set aside for moving
assistance and food basket
Assistance for host communities

Peoples satisfaction with physical

relocation

Village Infrastructure
and Housing

# village community buildings constructed

# village utilities (electricity, water)
functioning
# of houses constructed
# of house and land titles processed
Assistance for host communities
Access to cultural sites
Production and dissemination of
development communications material

Level of use of common property

replacement (e.g. church, mosque,
meeting halls, etc)
Occupation rates for housing and use of
infrastructure
Demographic patterns (settlement
patterns, in-migration, density)

Agriculture

Financial resources spent for agricultural

development
# months of expert support for sector
capacity-building
# of women and men trained in sector
# of vegetable gardens established by
TMB households
# of agroforestry gardens established by
TMB households
# of tools, seed and trees distributed
Production and dissemination of
development communications material

Crop productivity for selected indicator/

staple crops
Household participation in agriculture
activities
Household agriculture production and
incomes
Status of food security for relocated
families
Incomes from agriculture and horticulture
Cash income from agricultural goods sold

Fisheries

Financial resources dedicated to support of

the sector
# months expert support for capacitybuilding
# of people trained in fishing-related
skills, e.g., motor repair, prawn catching,
post-harvest processing and product
diversification by gender
# of people trained in boat-building by
gender
# of fishing boats built

Improved market opportunities and higher

prices for marine produce
Increased participation post-harvest
processing of marine produce
Increased participation in prawn harvesting
and sale
Household incomes from fisheries
Household incomes from post-harvest
processing of marine products

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

LARAP
Commitment

Indicators
Inputs/Processes/Outputs
(data collected/reported monthly)

Outcomes/Impacts
(data collected every 6 months or annually)

Micro-finance and
Small Business
Development

Financial resources devoted to sector

support
# months expert support for capacitybuilding
# villagers trained to operate village-level
micro-finance capability
# of village-level micro-enterprises
established
# of households applying for loans

Household income from micro-finance

Household savings as proportion to
incomes
# of viable village-based small
enterprises
Rates of loan repayment

Employment in the
LNG Plant and Training

#s trained by gender, skills, and

community
#s employed by gender, skills, and
community

Income from employment

Savings from employment

Social Indicators

Level of use of common property

replacement (e.g. church, mosque,
meeting halls, etc)
Operation of village utilities (water and
electrical systems)
Occupation rates for housing and use of
infrastructure
Incidence of house and land sale or rental
Occurrence and extent of in-migration
Consultation, grievance and redress

Demographic patterns (settlement

patterns, in-migration, density)
Re-establishment of social networks

Health

Financial resources devoted to activity

# of health centres established/ staffed
# of health practitioners/ community
members trained

Infant and maternal mortality

HIV, TB, and malaria cases
Patterns and types of diseases treated

Education

Financial resources devoted to activity

# of schools established and supplied
# teachers/student
Average number of schooling hours per
school day
# students by gender

Affected-People (AP)
Satisfaction

Awareness building and dissemination

of information regarding entitlements,
grievance and conflict resolution
procedures, etc
On-going consultation
# of grievances and conflicts registered
and resolved

AP awareness of entitlements
AP assessment of extent to which living
standards and livelihoods have been
restored
AP awareness of grievance procedures
and conflict resolution procedures

Primary school attendance

# graduated
# continuing to next level of education
# of scholarships given/completed

Implementation of internal monitoring and evaluation involves the following activities:

Liaison with stakeholders and Project-affected communities to review and

report progress against the RAP;

Verify delivery of entitlements in accordance with RAP;
Verify that agreed measures to restore or enhance living standards are being

implemented;

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253

 Verify that agreed measures to restore or enhance livelihoods are being

implemented;
Identify any problems, issues, or cases of hardship resulting from resettlement

process;
Assessment of project affected peoples satisfaction with resettlement

outcomes;
Collation of records of grievances (type, number), follow-up that appropriate

corrective actions have been undertaken and that outcomes are satisfactory.
The results of these internal LARAP M&E activities will be reported in accordance with general
Project norms for line reporting i.e., monthly reports from the Resettlement Unit to Tangguh
management. The format and content of the monthly report will be discussed with management.
Monthly reports should include qualitative assessment and quantified information with emphasis
on progress towards achieving various sectoral program objectives including agriculture, fisheries,
micro-finance and small business development. The final reports for each year will also summarize
progress in the context of the overall Resettlement Plan, including all inputs provided for agriculture,
fisheries, micro-finance and small business development and the outputs attained during the year.
The report will also present an annual implementation plan for the following year.
13.5

External Monitoring and Evaluation

13.5.1

Socio-economic Surveys of Resettlement-Affected Communities

It is clear that the internal and external monitoring and evaluation process require collection of
outcome indicators from a sample of the population (20 per cent of households and/or beneficiaries)
at regular intervals. An appropriate survey instrument designed to provide information on outcome/
impact indicators as described in Table 13.2 should be implemented every two years starting 2005
(i.e., one year after resettlement) until 2009 (i.e., five years after completion of village construction
and Tanah Merah community physical relocation and once LNG plant construction has been
completed). Survey results will be used to measure progress, identify weaknesses and new issues,
and help adapt program design and/or redirect implementation work where necessary. The survey
design should replicate questions and data collected in the baseline survey carried out in 2001 and
include additional aspects which became relevant during LARAP preparation and implementation.
The biannual survey should be implemented by an Indonesian monitoring group independent of
the Project. This group should propose a methodology and interview schedule in line with LARAP
objectives and submit it to the Project Resettlement Unit for review. The Resettlement Unit and
the Advisory Panel will review the survey findings and develop a summary and action report for
submission to management.
As outlined in Section 13.1, AMDAL and Implementation LARAP requirements for M&E will be
integrated to optimize use of human, financial and logistical resources. In the field, once the physical
move takes place and the relocation activities are completed, ISP M&E staff will assume the primary
responsibilities to collect and collate data.

254

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

13.5.2 External Monitoring and Evaluation Team

A team comprising international resettlement and social development experts will be recruited to:
Verify internal M&E findings and provide an objective external assessment;
Assess overall compliance;
Provide objective and periodic assessments of resettlement implementation

plans and their impacts.

Activities of the external team will include:
Review internal monitoring procedures and reporting to ascertain they are being

undertaken in compliance with LARAP;

Review internal monitoring records as a basis for identifying any areas of

non-compliance, recurrent problems, or potentially disadvantaged groups or

households;
Review grievance records for evidence of significant non-compliance or

recurrent poor performance in resettlement implementation;

Discuss with Resettlement staff;
Interview a cross section of affected households to gauge extent to which

Project-Affected Peoples living standards and livelihoods have been restored or

enhanced as result of the Project;
Interview a cross section of affected community people and key informants to

ascertain effectiveness of non-LARAP related social measures;

Assess overall compliance with international standards.

The external team will implement M&E activities on a six-monthly basis, with each member
contributing 20 days time to each visit. The teams M&E reports (and the completion audit described
in the following section) will be disclosed in line with ADBs Public Communications Policy 2005.
13.5.3 Completion Audit
Finally a completion audit will be implemented by the external M&E team in 2009. The completion
audit will verify: (a) that all physical inputs committed to have been delivered and all services
provided, and (b) whether efforts to restore the livelihoods of the affected population have been
properly conceived and executed and have had the desired effect. A successful completion audit
brings to a close the Project liabilities vis a vis resettlement. If the completion audit demonstrates
that resettlement objectives have not yet been achieved, further action will be planned and
implemented as appropriate.

13 Monitoring and Evaluation

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256

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Appendices

4.1 Key Law and Regulations Relating to Land

Acquisition and Resettlement

259

4.2 Land Acquisition Documentation:

The 1999 Agreements

263

5.1 Survey Questionaire

271

8.13 Housing, Facilities and Utilities Development

289

8.4 Detailed Plan for the Physical Relocation of the Tanah

Merah Community from Tanah Merah to Tanah

Merah Baru and Onar Baru

293

Plates

311

Appendices

257

258

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

4.1 Key Law and Regulations Relating to Land

Acquisition and Resettlement

The key laws and regulations that have been considered in connection with the Tangguh Project are
as follows:
1.

Land Acquisition

Law Undang-Undang (UU)

Law No. 5 of 1960 (September 24, 1960) regarding Basic Agrarian Law

Government Regulation Peraturan Pemerintah (PP)

Government Regulation No. 40 of 1996 (June 17, 1996) regarding Right of Cultivation,
Right to Build, and Right of Use of Land

Government Regulation No. 24 of 1997 (July 8, 1997) regarding Land Registration

Presidential Decree (PD) Keputusan Presiden (Keppres)

PD No. 55 of 1993 (June 17, 1993) regarding Land Procurement for the Public Interest

State Minister of Agrarian Affairs/Chairman of BPN (National Land Affairs Agency)

Regulation Peraturan Menteri Negara Agraria/Kepala BPN (Badan Pertanahan Nasional)

Regulation No. 1 of 1994 (July 14, 1994) regarding Implementing Provisions of

PD No. 55/1993

Regulation No. 3 of 1997 (August 25, 1997) regarding the Implementing Provisions of
GR No. 24/1997

Regulation No. 3 of 1999 (February 19, 1999) regarding Delegation of the Authority to
Issue and Revoke Decisions to Grant Rights over State Land

Appendix 4.1 Key Laws and Regulations

259

Regulation No. 5 of 1999 (June 24, 1999) regarding Guidelines for Settling Customary Law
Community Communal Rights Issues;

Regulation No. 9 of 1999 (October 24, 1999) regarding Procedures for the Granting and
Cancellation of Rights on State Land and Rights of Management

State Minister of Agrarian Affairs/Chairman of BPN (National Land Affairs Agency)

Decree Keputusan Menteri Negara Agraria/Kepala BPN (Badan Pertanahan Nasional)

2.

Decree No. 21 of 1994 (December 7, 1994) regarding Procedures to Obtain Land Titles for a
Company within the Framework of Capital Investment

Spatial Layout
LawUndang-Undang (UU)

Law No. 24 of 1992 (October 13, 1992) regarding Spatial Layout

Government Regulation Peraturan Pemerintah (PP)

Government Regulation No. 47 of 1997 (December 30, 1997) regarding National Spatial
Layout Plan

Presidential Decree (PD) Keputusan Presiden (Keppres)

3.

PD No. 62 of 2000 (May 8, 2000) regarding the Coordination on the National Spatial
Layout Plan

Location Permit
State Minister of Agrarian Affairs/Chairman of BPN (National Land Affairs Agency)
Regulation Peraturan Menteri Negara Agraria/Kepala BPN (Badan Pertanahan Nasional)

Regulation No. 2 of 1993 (October 23, 1993) regarding the Procedures to Obtain Location
Permits and Land Titles for a Company within the Framework of Capital Investment

Regulation No. 2 of 1999 (February 10, 1999) regarding Location Permits

State Minister of Agrarian Affairs/Chairman of BPN (National Land Affairs Agency)

Decree Peraturan Menteri Negara Agraria/Kepala BPN (Badan Pertanahan Nasional)

4.

Decree No. 22 of 1993 (December 4, 1993) Regarding Guidelines for Granting Location
Permits in the Framework of the Implementation of Reg. No. 2/1993

Forestry
LawUndang-Undang (UU)

Law No. 41 of 1999 (September 30, 1999) regarding Forestry

Government Regulation (GR) Peraturan Pemerintah (PP)

260

GR No. 28 of 1985 (June 7, 1985) regarding Forest Protection

GR No. 68 of 1998 (August 19, 1998) regarding Nature Preserves and Nature
Conservation Areas

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Presidential Decree (PD) Keputusan Presiden (Keppres)

PD No. 32 of 1990 (July 25, 1990) regarding Management of Protected Zone

Minister of Forestry Decree Keputusan Menteri Kehutanan

Decree No. 55/Kpts-II/1994 (February 7, 1994) regarding Guidelines on Forest Area Borrowing
and Use, as lastly amended by Decree No. 720/Kpts-II/1998 (November 5, 1998)

Decree No. 292/Kpts-II/1995 (June 12, 1995) regarding Forest Area Swapping

Decree No. 140/Kpts-II/1998 (February 25, 1998) regarding Amendment to Minister of

Forestry Decree No. 464/Kpts-II/1995 regarding Protected Forest Management

Decree No. 70/Kpts-II/2001 (March 15, 2001) regarding Designation of Forest Area,
Conversion of Forest Status, and Conversion of Forest Function

Decree No. 20/Kpts-II/2001 (January 31, 2001) regarding the General Pattern, Standards and
Criteria for the Rehabilitation of Forest and Land

Decree No. 32/Kpts-II/2001 (February 12, 2001) regarding the Criteria and Standards for
Confirmation of Forest Areas

Appendix 4.1 Key Laws and Regulations

261

262

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

4.2 Land Acquisition Documentation:

The 1999 Agreements

1.

The Plant Site

Minutes of Agreement Relating to Acquisition of the Plant Site

Two Minutes of Agreement were drawn up, dated 20th May and 19th July 1999.
Minutes of Agreement of 20th May 1999 Between PERTAMINA/ARCO and representatives of the
landowners (the Simuna, the Sowai and the Wayuri).

The Minutes identified the location of the land to be relinquished by reference to

a Statement Letter and Map, both dated 18th May 1999, which were attached
to the Minutes, and stated that the land owners were willing to dispose of/
relinquish their rights to the land (including all things and plants existing on the
land) to PERTAMINA/ARCO. As of this date, the area of land to be acquired was
3,000 ha (it subsequently increased to 3,266 ha after measurement).

The Minutes set out the cash portion of the compensation to be provided for the
land.

The villagers of Tanah Merah Village were not to receive compensation in the
form of cash, but PERTAMINA/ARCO agreed to (i) construct houses at the
resettlement site (each at least the same size as those presently occupied by the
villagers); (ii) build religious facilities and schools (elementary and junior high),
and (iii) relocate the cemeteries to the resettlement site.

 The Minutes of Agreement was witnessed by (1) the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in
Manokwari; (3) Head of Babo Kecamatan; (4) Head of Tanah Merah; (5) Head of Sumuri (Saengga)
Village, and acknowledged by the Bupati of Manokwari.

Appendix 4.2 Land Acquisition Documentation

263

The Minutes further stated the way in which compensation for plants would be
carried out.

PERTAMINA/ARCO also agreed to provide land for gardens to those who

presently owned gardens, to be located near the resettlement site (each of a size
no less than the size of the gardens currently owned).

The Parties agreed that payment of the cash compensation should be made at
the time of execution of a Deed of Relinquishment. The Minutes also stated that
each clan should appoint its legal representative, through a proxy letter, to act on
behalf of the respective clan to execute the Deed of Relinquishment and receive
the cash compensation.

Minutes of Agreement, 19th July 1999 These Minutes refer to the Minutes of 20th May and 19th
June 1999 (in which the area of land to be acquired from the Wayuri clan increased to 1,866 ha, bringing the
total area to be acquired to 3266 ha).

The Minutes contained additional agreements with respect to the plant site:

PERTAMINA/ARCO agreed to allow the land owners and the Tanah Merah
villagers to remain on the land acquired for the Project for a maximum period of
two years after the signing of the Deed on Relinquishment for the acquisition of
Rights to Land for the Tangguh LNG Project location or until completion of the
new location including the supporting facilities.

During the period in which they remain on the land, the Sowai, Simuna and
Wayuri clans and the Tanah Merah villagers may grow plants. They may not build
houses or any other structures on the land without the prior written approval
from PERTAMINA/ARCO.

At the time the Sowai, Simuna and Wayuri clans and the Tanah Merah villagers
leave the relinquished land no compensation will be paid by PERTAMINA/ARCO
for any plants grown or structures erected.

PERTAMINA/ARCO agree to honour sacred places located on the land acquired,

if the Tangguh LNG plant construction plan does not require PERTAMINA/ARCO
to occupy such land. If the construction plan does require PERTAMINA/ARCO
to occupy such sacred places, PERTAMINA/ARCO are permitted to do so and
the clans and the Tanah Merah villagers shall continue to recognize and honour
PERTAMINA/ARCOs rights to the land.

Deed of Relinquishment and Payment of Compensation

Following the Minutes of Agreements, a Deed of Relinquishment was executed, together with a
Statement Letter and Minutes of Payment of Compensation.

 The Minutes of Agreement was witnessed by (1) the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in
Manokwari; (3) Head of Babo Kecamatan; (4) Head of Tanah Merah and acknowledged by the
Bupati of Manokwari.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Minutes of Payment of Compensation for the Plant Site of 22nd July 1999 This
document was between PERTAMINA and the landowners, the Simuna, Wayuri and Sowai clans.
The Minutes confirmed that on 22nd July 1999, monetary compensation amounting to Rp
482,400,000 for the release of adat land was paid to the landowners through the representatives
of each clan, as witnessed by the Land Procurement Committee of Manokwari. It stated that the
payment of compensation was carried out pursuant to the result of the amicable negotiation between
PERTAMINA and landowners as set out in the Minutes of Agreement of 20th May, 19th June and
19th July 1999. The landowners confirmed that they had received the payment of the compensation
in full from PERTAMINA as indicated in the List of Payment of Compensation for Land attached to
the Minutes.
The Minutes stated that, on receipt of such compensation, the landowners would relinquish their
rights to the land in a Deed of Relinquishment to allow PERTAMINA to acquire land rights.
Deed of Relinquishment of 22nd July 1999 PERTAMINA and the representatives of the
landowners executed a Deed of Relinquishment on 22nd July 1999 for the site for the Tangguh LNG
plant. The Heads of each of the Wayuri, Sowai, and Simuna clans represented the landowners in
executing the Relinquishment Deed. These individuals were appointed to represent their respective
clans through proxy letters. S.D. Runtuboy, BA, Head of the Babo Kecamatan drew up the Deed.

The Deed of Relinquishment sets out the agreement of the landowners

to relinquish their rights to an area of land of approximately 3,266 ha. The
landowners state that the relinquishment of rights to PERTAMINA for the
purpose of the Tangguh LNG Project is conducted consciously and sincerely,
without duress, pressure or threats from any party.

It confirms receipt of the compensation from PERTAMINA and states that the 50
ha of land on which Tanah Merah is situated has been voluntarily relinquished by
the Sowai clan.

The landowners warrant that the land is the rightful property of the members of
the Simuna, Wayuri and Sowai clans.

The landowners irrevocably relinquish the rights to the land, and their hak ulayat
will become forever null and void. The status of the land is released to the State,
so that the Government shall grant the title to the land, to PERTAMINA.

Statement Letter of 22nd July 1999 This was signed before S.D. Runtuboy, BA, Head of
the Babo Kecamatan. The signatories were the representatives of the landowners from Simuna, Wayuri and
Sowai clans, and PERTAMINA.

This Statement Letter was a follow-up to the agreement set out in the Minutes of Agreement dated
19th July 1999, and set out details of the non-cash compensation that had been agreed.

 The Minutes of Agreement was acknowledged by the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari.
 The Deed of Relinquishment was witnessed by the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari and the Head of Tanah Merah
Village.
 The Statement of Indemnification is witnessed by (1) the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in
Manokwari; (3) Head of Babo Kecamatan; (4) Head of Tanah Merah.

Appendix 4.2 Land Acquisition Documentation

265

It states that both PERTAMINA and the representatives of the three clans have signed a Deed
of Relinquishment. It confirms that in addition to the cash compensation set out in the Deed of
Relinquishment, PERTAMINA has also agreed to provide houses for the Tanah Merah villages, places
of worship, schools, relocation/preparation of cemeteries at the new location, and sites for gardens
in the location of the resettlement site.
It states also that PERTAMINA/ARCO will reconstruct the houses of the Simuri (Saengga) villagers,
will acquire land certificates for the Simuri (Saengga) villagers and will build public and social facilities
at the resettlement location.
2.

The Resettlement Site at Tanah Merah

As is clear from the discussion above, it was agreed that, in addition to the acquisition of land for the
plant site, PERTAMINA/ARCO would acquire additional land for the resettlement of Tanah Merah
and provision of property rights for Simuri (Saengga) Village. The area deemed most appropriate for
this was 200ha of Simuna land outside the planned location of the LNG plant.
Minutes of Agreement Relating to Acquisition of the Resettlement Site

Minutes of Agreements of 20 May 1999 This was between PERTAMINA/ARCO and

the Simuna clan.

The Simuna clan confirmed its willingness to dispose/relinquish their rights to

200 ha of land with hak ulayat title as identified in the Statement Letter and Map
of 20 May 1999 attached to the Minutes to PERTAMINA/ARCO.

Payment of compensation (agreed for both land and plants on the same basis
as for the plant site) would be paid in cash at the time of execution of a deed of
relinquishment.

The Simuna clan agreed to appoint its representative, through a proxy letter,
for the execution of the Deed of Relinquishment and receipt of payment of the
compensation.

Minutes of Agreement of 19th July 1999 The Minutes relate to the acquisition of 200 ha
of land, and the way in which this land will be allocated between the resettled village and the inhabitants of
Simuri (Saengga) Village. Of the 200 ha, 50 ha will be allocated for the resettlement of Tanah Merah and 50 ha
for the reconstruction of houses in Simuri (Saengga) Village. The remaining 100 ha will be made available as
gardens for Tanah Merah and Simuri (Saengga) Village. The Minutes state further:

Boundaries of the gardens will be jointly made by PERTAMINA/ARCO, Tanah

Merah and Simuri (Saengga) Villagers.

Tanah Merah and Simuri (Saengga) Villagers will share the public and social
facilities to be constructed at the resettlement site.

 The Minutes of Agreement was witnessed by (1) the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in
Manokwari; (3) Head of Babo Kecamatan; (4) Head of Sumuri (Saengga) Village and acknowledged
by the Bupati of Manokwari.
 The Minutes of Agreement was witnessed by (1) the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in
Manokwari; (3) Head of Babo Kecamatan; (4) Head of Tanah Merah and acknowledged by the
Bupati of Manokwari.

266

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Tanah Merah and Simuri (Saengga) Villagers will be responsible for allocating
portions of the designated land for the construction of additional houses for
villagers who presently do not own a house and/or are not residing in the
respective villages.

PERTAMINA/ARCO will not be responsible for construction of houses for the

Tanah Merah and/or Simuri (Saengga) Villagers who, at the time of the housing
inventory performed in May 1999, did not own a house and/or did not reside in
Tanah Merah and/or Simuri (Saengga) Village.

PERTAMINA/ARCO will, at their sole expense, process the registration of title to

the land used for the houses on behalf of the individual Tanah Merah and Simuri
(Saengga) Villagers entitled to a house or reconstruction of their houses, based
on the inventory of assets done by PERTAMINA/ARCO and the entitled home
owners in May 1999.

Deed of Relinquishment and Payment of Compensation

F
ollowing the Minutes of Agreement, a Deed of Relinquishment was executed, together with
Minutes of Payment of Compensation and an agreement relating to the land for resettlement.
Minutes of Payment of Compensation for the Resettlement Site of 22nd July 1999
This document is between PERTAMINA and the landowner, the Simuna clan.
The Minutes confirmed that on 22nd July 1999, monetary compensation amounting to
Rp.30,000,000.00 for the release of adat land was paid to the landowner through the representative
of the clan, as witnessed by the Land Procurement Committee of Manokwari. It states that the
payment of compensation was carried out pursuant to the result of the amicable negotiation between
PERTAMINA and the landowner, as set out in the Minutes of Agreement of 20th May and 19th July
1999.
It states that, on receipt of such compensation, the landowners will relinquish their rights to the
land in a Deed of Relinquishment for the purpose of resettlement of Tanah Merah villagers and
reconstruction of Simuri (Saengga) Village.
The landowners confirmed the receipt of the payment of the compensation in full from PERTAMINA
as indicated in the List of Payment of Compensation for Land attached to the Minutes.
Deed on Relinquishment of 22nd July 1999  The deed was drawn up by S.D. Runtuboy,
BA, Head of the Babo Kecamatan. The signatories to the Deed were the Simuna clan, the Head of
Tanah Merah, and the Head of Simuri (Saengga) Village.
The Simuna clan confirms that it has received compensation for the land in full. The Simuna clan
declares also that the relinquishment is conducted consciously and sincerely, without duress,
pressure or threats from any party.
The Simuna clan warranted that the land was the rightful property of the members of the clan.

 The Minutes of Agreement was acknowledged by (1) the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in
Manokwari; (3) Head of Babo Kecamatan, and (4) Head of Tanah Merah.
 Witnessed by (1) the Head of the Division of the Government Administration under the Secretary to
the Bupati of Manokwari, and (2) Head of BPN.

Appendix 4.2 Land Acquisition Documentation

267

The Deed states that the relinquishment of rights is carried out with the objective that the land shall
be returned to the State for the interest of the villagers of Tanah Merah who will be resettled, and
for the reconstruction of Simuri (Saengga) Village as well as for process of the land title certificate in
Simuri (Saengga) Village.
By signing this Deed, the Simuna clan relinquishes its hak ulayat for an indefinite period, and shall
not, in the future, submit any claim for such hak ulayat rights to the land.
Agreement on Resettlement Land of 22nd July 1999 The signatories were PERTAMINA/
ARCO, the Head of Tanah Merah village, and the Head of Simuri (Saengga) Village.
Under this agreement, the heads of the Tanah Merah and Simuri villages agree to hold all rights
and title to the land on behalf of the relocated community prior to land title being obtained for the
individual villagers.
PERTAMINA/ARCO agree to pay all taxes associated with the transfer of title as well as application
of the title to the land at the relocation site until the land in the relocation site has been split up and
allocated to each individual member who is part of the relocated community.
3.

Agreements Relating to Trees, Plants and Sago

Rights relating to trees, plants and sago also had to be acquired and compensation negotiated and
paid, as described below.
Minutes of Agreement of 26th May 199910 The parties to this agreement were PERTAMINA/ARCO
and the owners of the plants and sago. The names and signatures of a total of 60 individuals were set out in an
attachment to the Minutes.

The Minutes stated that the owners of the plants and sago located in the west of Manggosa River
were willing to dispose of/relinquish their rights to the plants and sago affected by the Tangguh LNG
Project or located within the land to be relinquished to PERTAMINA/ARCO.
For plants, the compensation was to be calculated as follows: (i) for the plants categorized as large
and medium, according to the Bupati of Manokwaris Decree No. 213 of 1997 of 12th May 1997,
and (ii) for the plants categorized as small, one-third of the price indicated for plants categorized as
medium. For the sago, a single payment of Rp.75,000,000 was agreed.
The amount and types of plants for which compensation would be paid was to be based on the
inventory made by both parties. No compensation would be paid for plants coming into existence
after the inventory.
Compensation would be paid in cash form at the time of execution of Minutes of Payment of
Compensation, at the same time of the payment of compensation for the land.

10 The Minutes of Agreement were witnessed by (1) the Head of the Division of Government
Administration under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in
Manokwari; (3) Head of Babo Kecamatan; (4) Head of Tanah Merah; (5) Head of Sumuri (Saengga)
Village, and acknowledged by the Bupati of Manokwari.

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Minutes of Payment of Compensation for Vegetation of 22nd July 199911 These Minutes
were signed on 22nd July 1999 (with a further minor addition on 24th July 1999). It states that compensation for
the land has been made in accordance with the inventory of the plants jointly made by PERTAMINA/ARCO and
the plant owners. The plant owners state that the inventory list has recorded all plants of the plant owners. No
compensation shall be made for plants other than those in the inventory list. Any plant existing after the date of
the inventory will not be compensated.

The plant owners state that any future claims made by them, their descendants, relatives or other
parties related to them on the amount, as well as calculation method of the compensation and other
related issues, shall be settled amicably between and among them, and shall not involve any third
parties, including PERTAMINA/ARCO.
In signing the Minutes, the plant owners confirm that they have received compensation in full
from PERTAMINA/ARCO in accordance with the List of Recipients of Payment Compensation
for Vegetation as witnessed by the Land Procurement Committee. The Minutes attach a List of
Recipients of Payment of Compensation for Vegetation (which lists 86 names of individuals, a
church, Kades Tanah Merah, Sekdes Tanah Merah, and Dusun Sagu).
Minutes of Payment of Compensation for Sago of 22nd July 199912 Monetary compensation
was paid, as witnessed by the Land Procurement Committee, for the sago located in the west side of the
Manggosa River to the members of the community living in Tanah Merah through their legal representative,
pursuant to the result of the amicable negotiation between both parties as set out in the Minutes of
Agreement on Compensation for Vegetation and Sago dated 26th May 1999. Both parties agreed that as a
consequence, the community may no longer harvest the sago.

11 The Minutes were acknowledged by (1) the Head of the Division of Government Administration
under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in Manokwari; (3)
Head of Babo Kecamatan; (4) Head of Tanah Merah.
12 The Minutes were acknowledged by (1) the Head of the Division of Government Administration
under the Secretary to the Bupati of Manokwari; (2) Head of the Land Office in Manokwari; (3)
Head of Babo Kecamatan; (4) Head of Tanah Merah.

Appendix 4.2 Land Acquisition Documentation

269

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Appendix 5.1

5.1 Survey Questionnaire

SURVEY QUESTIONNAIRE
A
census of the Tanah Merah and Saengga (including Onar) communties Respondent
was conducted
in 2001 and
PERTAMINA-BP
Number
2002, respectively. This appendix presents the survey questionnaire.

LNG TANGGUH PROJECT

I.1

TANAH MERAH RESETTLEMENT PLAN

List of Questions: Census & Socio-Economic Survey
Respondent Identity
1 Name

2 Age

Year:

I.3

3 Gender/Sex

: Male

Female

I.4

4 Address

: RT

RW

I.5

I.2

Kampong

I.6

Village

I.7

District.
District.
5 Education

I.8

6 Occupation

a.
___
b. part time 1: ______________________________

I.9
I.10

c. part time 2: ______________________________

I.11

Date of Interview

Interviewer

Supervisor

Review Date

Appendix 5.1 Survey Questionnaire

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

A15

A13

4 Number of family > 15 tahun:

Persons
and working (including family head)

A5

A14

A4

Persons

A3

Status
In
Family

3 Number of family < 15 tahun:

(t

A2

Place Of
Birth

Sex
(M/F)

Persons

A1

Full Name

Date of
Birth/ Age
(Year)

2 Number of Family Members:

(including Head of Family)

1
2
3
4
5
6
7
8
9
10
11
12

No.

1 Data Keluarga

5.

A6a

A6b

Tribe/Clan
A7

Religion
A8

Education
A9

Skills
A10

N a m e

2. Yes, There are:

[A17]

Disability

[APOLOGIES], Are there members of the household who are disabled?

Handicapped/ Disabled family member?
1. No

Marital
Status

[DIRECTION FOR INTERVIEWER: fill out completely respondent's family data, including family head]

A. FAMILY DATA

[A18]

Occupation
A11

A16

A12

Live in
Village
since
(year)

B. HOUSE CONDITION, ENVIROMENTAL SANITATION AND PURE WATER RESOURCES

1 Give the number of this house (according to the number given during the mapping)
B1
2 Ownership status of the house
a. Ownership is under the name of: ___________________________
b. Yearly Contract
c. Monthly Contract
d. Official house owned by Department ______________________
e. Just staying/squatter

B2

3 [IF HOUSE IS NOT SELF-OWNED NOR IT IS AN OFFICIAL HOUSE]

then who is the owner of this house?
a. Owner's name
: __________________________
b. Owner's address : _____________________________________________

B3a
B3b

4 What is the size of this house?

____m x ____m

B4

5 What size is this land area including the yard of this house ?
____m x ____m

B5

In ____________

6 What year was this house built?

B6

7 [PLEASE ASK]: Composition and usage of rooms in the existing house

a. Bed room
: ____ rooms
Bed room size : _____ meter square
b. Guest room
: yes/no
c. Family room : yes/no
d. dining room
: yes/no
e. Kitchen
: yes/no

B7a1
B7a2
B7b
B7c
B7d
B7e

8 Is there a table (place) in the kitchen to store farming equipment/

hunting equipment or harvests ?
a. Yes, there is
b. No, there isn't

B8

[TO FILL OUT QUESTIONS 9 - 13 : PAY ATTENTION TO RESPONDENT'S HOUSE]

9 Type of house:
a. Stage house
10 The wall of this house is made of:
(take the biggest part to determine)
a. Bricks
b. Wooden boards

b. Ordinary house

c. Bamboo templates
d. Gaba-gaba

11 Floor of this house is made of

(take the biggest part to determine)
d. Wood
a. Ceramic
e. Bamboo
b. Tile
c. Cement
f. Gaba-gaba
12 The roof of this house is made of:
(take the biggest part to determine)
a. Sirap
b. Genteng
c. Seng

g. Soil
h. Timber elevated floor

d. Asbes
e. Rumbia/daun sagu dan sejenisnya

13 Main type of lighting the household is using

a. Electrical
d. Cempor
b. Petromax
e. None (use fire)
c. Pelita - kerosene

B9

B10

B11

B12

14 Is there drainage system around the house?

a. Yes
b. No

B13

15 How many doors and windows are in this house?

a. door : ____ doors
b. window : ____ windows

B14a
B14b

16 Does the household have own toilet

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273

a. Yes

b. Not yet

17 If no toilet, where do the household members excrete?

a. Go to neighbor
d. To pool
b. To public toilet and bath room
e. To river
c. Cubluk

B15
f. To beach
g. To farming

B16

18 How do you usually handle the waste of the household?

a. Throw to the river/ beach
b. Throw to any place of the yard
c. Throw to the rubbish hole, when it gets full the hole will then be stacked
d. Thrown to rubbish hole, burnt, when full then stacked
e. There is a rubbish distribution system
19 For drinking water the household uses
a. Tap
c. Well
b. Public tap
d. Rain

e. River
f. Spring water

B18

21 For bathing, the household uses

a. Tap
b. Public tap

c. Well
d. Rain

e. River
f. Spring water

B19

21 For washing clothes the household uses

c. Well
a. Tap
b. Public tap
d. Rain

e. River
f. Spring water

B20

(number)

B21a
B21b
B21c
B21d
B21e
B21f
B21g
B21h
B21i
B21j
B21k
B21l
B21m
B21n

22 household inventories
a. guest couch
b. dining table
c. closet
d. dressing table
e. sewing machine
f. ironing machine
g. clock
h. radio
i. Tape recorder
j. television
k. bycicle
l. motorcycle
m. generator
n. refigerator

: _______ pasang
: _______ pasang
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah

22. farming and carpenter equipments inventories

a. cangkul
: _______ buah
b. sabit
: _______ buah
c. golok
: _______ buah
d. sprayer
: _______ buah
e. pemukul sagu
: _______ buah
f. chainsaw
: _______ buah
g. gergaji potong
: _______ buah
h. gergaji belah
: _______ buah
i. serut
: _______ buah
j. pahat
: _______ buah
k. bor kayu
: _______ buah
l. hammer
: _______ buah
m. Axe
: _______ buah
n. Parang
: _______ buah

B22a
B22b
B22c
B22d
B22e
B22f
B22g
B22h
B22i
B22j
B22k
B22l
B22m
B22n

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Appendix 5.1 Survey Questionnaire

275

1.

C.

C1

Location of
Lot/ Land (1)

(Ha)

C8

Total Size of
Sago lot

C10

Total Size of
Garden Lot
(ha)

(ha)

C2

of

Area (Ha)

Size

C11

C9

C3

Land Obtained by
what process 2)
C4

Owned since
Year

Keterangan:
1)
say which kampong or village
2)
say how it was obtained
3)
Isikan apakah berupa Surat Pengakuan Pemilikan Tanah (SPPT), Surat Keterangan Tanah (SKT), atau Sertifikat
atau keterangan lainnya menurut istilah setempat
4)
Mark on map with coordinates from GPS

Total Size of
Garden Lot
(ha)

5 Lot 5

4 Lot 4

3 Lot 3

2 Lot 2

1 Lot 1

Tanah Kebun(garden/plantation/other)

Total Size of
Sago lot

3 Lot 3

2 Lot 2

1 Lot 1

Dusun Sagu (Sago plantation/plot/trees)

No. of Land/ Lot

Land Ownership Data

OWNERSHIP OF FARMING LAND

C5

Status of
Ownership3)
C6

Current usage of Land

Tanaman(C7.1)
Umur (C7.2)

[DIRECTION FOR INTERVIEWER]

- considering that it is a sensitive issue, apologize to respondent
- say that this issue is related to ensuring adequate access to sources of income when they move to the new village (or when Tanah Merah moves to its new site)
- dig information on the number of areas/fields used/owned, the location and size the land, how was it obtained
and when, the formal or communual ownership status and for what is it currently used.

D. HOUSEHOLD INCOME
1. Income from sago plantation and agro business (annually)
No.

Width
(ha)

Plant Type

number of trees
(batang/rumpun)

age
mount of resu
(years)
(Kg)

price
(Rp.)

value
(Rp.)

Sago field/ forest

Lot 1
Lot 2
Lot 3
Coconut Field
Lot 1
Lot 2
Lot 3
Other Garden
Lot 1
Lot 2
Lot 3
Other Garden
Lot 1
Lot 2
Lot 3
Other Garden
Lot 1
Lot 2
Lot 3
D1
2. Income from fruits or plants (per year)
No.

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Plant type

Width (ha)

No. of Trees
(batang,
rumpun)

Age (yrs)

Production
(kg, buah)

Price (Rp)

Value (Rp)

Jeruk siam/ Orange

Salak/ Snake-skin fruit
Pisang/ Bananna
Manggis
Nenas/ Pineapple
Sawo
Mangga
Durian
Papaya
Alpokat/ Avocado
Rambutan
Pinang/ Areca Nut
Sirih/ betel leaves
Aren/ Sugar Palm
D2

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3. Income from agriculture (in one year).

No.

Type

Rice

Corn

Cassava

Yam/ Sweet potato

Peanut

Soy Beans

Green peas

Water Melon

other

Season 1
Luas Tanam
Hasil (kg)
(ha)

Season 2
Luas Tanam
Hasil (kg)
(ha)

Sale Price
(Rp)

Income (Rp)

10
D3

4. Income from vegetables (in a year)

No.

Type

Chilli

Cucumber

Tomato

Kacang Panjang

Egg Plant

spinach

Papaya Flower

Kangkung

Cassava Leaves

10

Daun pakis

Season 1
Luas Tanam
Hasil (kg)
(ha)

Season 2
Luas Tanam
Hasil (kg)
(ha)

Sale Price
(Rp)

Income (Rp)

D4

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277

5. Income from Raising Cattle per year (dalam satu tahun, hanya dihitung tambahan ternaknya)
No.

Type of Cattle/ Poultry

Buffalo

Cow

Horse

Goat

Sheep

Pig

Chicken

Duck

Swan

Total no. of animal Number of Animal

Increment per year

Sale Price (Rp.) Income (Rp.)

D5
6. Income from Fishing activities (per year)
[Question No 6.1 s/d 6.10 To be asked to RESPONDENT working as fisherman, both full time/ part time]
6.1 Type of boat owned?
a. perahu dayung
b. perahu ketinting
c. longboat
d. perahu dengan motor tempel/johnson

: _______ buah
: _______ buah
: _______ buah
: _______ buah

6.2 Type of fishing gear owned ?

a. jaring giop
b. jaring pantai
c. jaring hiu
d. jaring udang/trammel net
e. jala lempar
f. rawai tetap
g. pancing tunda
h. bubu

: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah
: _______ buah

(number)

D6.1a
D6.1b
D6.1c
D6.1d
D6.2a
D6.2b
D6.2c
D6.2d
D6.2e
D6.2f
D6.2g
D6.2h

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6.3 In one year, how many months do you catch fish/shrimp?

Month
January
February
March
April
May
June
July
August
September
October
November
Desember

Activity

No Activity
D6.3a
D6.3b
D6.3c
D6.3d
D6.3e
D6.3f
D6.3g
D6.3h
D6.3i
D6.3j
D6.3k
D6.3l

6.4 Based on your experience, in what months are there an abundance of shrimp or vice versa, a lack of shrimp?
Month
January
February
March
April
May
June
July
August
September
October
November
December

Abundance of
shrimp

Lack of shrimp
D6.4a
D6.4b
D6.4c
D6.4d
D6.4e
D6.4f
D6.4g
D6.4h
D6.4i
D6.4j
D6.4k
D6.4l

6.5 a. In the months when it is shrimp season, how many days in a month do you catch shrimp?
_______ hari

D6.5a

6.5b Vice versa, in the months when it is not shrimp season, how many days do you
catch shrimp?
_______ hari

D6.5b

6.6a On average, how many kilograms of shrimp do you catch each time you go catch shrimp
in the months when it is shrimp season?
_______ kg

D6.6a

6.6b Vice versa, in the months when it is not shrimp season, how many kilograms of shrimp do you catch
each time you go catch shrimp?
_______ kg

D6.6b

6.7a On average what is the percentage of the catch that you sell?

D7.a

6.7b Where do you usually sell your shrimp?

a. to neighbor
b. to market in village
c. to Camp BP Saengga
d. to Usaha Mina (sebagai penampung)
e. straight to Sorong
f. straight to ke Fak-Fak
g. other (sebutkan): _____________________

_____ persen

D6.7b

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279

6.8a What is the average price that you receive for shrimp during shrimp season?
Rp. _________/kg

D6.8a

6.8b Vice versa, what is the average price you receive for shrimp not during shrimp season?
Rp. _________/kg

D6.8b

6.9. Average income from catching shrimp (on a yearly basis)

No.
a.
b.
c.
d.
e.
f.

Faktor perhitungan
Musim banyak
Cumulative months with activity
Average days catching
average caught (kg)
total amount (axbxc=kg)
average price (Rp)
amount of catch (dxe=Rp)

Musim sedikit

D6.9a

D6.9b

D6.9

6.10 In one year, what months do you go fishing?

Month
January
February
March
April
May
June
July
August
September
October
November
December

Activity

No activity
D6.10a
D6.10b
D6.10c
D6.10d
D6.10e
D6.10f
D6.10g
D6.10h
D6.10i
D6.10j
D6.10k
D6.10l

6.11 Based on your experience, what months are considered as ikan permukaan season or vice versa ikan
dasar season?
Month
January
February
March
April
May
June
July
August
September
October
November
December

Ikan permukaan

Ikan dasar
D6.11a
D6.11b
D6.11c
D6.11d
D6.11e
D6.11f
D6.11g
D6.11h
D6.11i
D6.11j
D6.11k
D6.11l

6.12a In the months of ikan permukaan season, how may days per month do you go fishing?
_______ hari
6.12b Vice versa, In the months of ikan dasar season, how may days per month do you go fishing?

10

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

D6.12a

_______ hari

D6.12b

6.13a How many kilograms of fish do you catch each time you go fishing during the ikan dasar season?
_______ kg

D6.13a

6.13b Vice versa, How many kilograms of fish do you catch each time you go fishing during the ikan permukaan seaso
_______ kg
D6.13b
6.14a On average, what is the percentage of fish that you sell?

______ person

6.14b Where do you usually sell your fish?

a. to neighbor
b. to market in village
c. to Camp BP Saengga
d. to Usaha Mina (sebagai penampung)
e. straight to Sorong
f. straight to Fak-Fak
g. other (sebutkan): _____________________

D6.14a
D6.14b

6.15a What is the average price you receive for fish during the permukaan permukaan season?
Rp. _________/kg

D6.15a

6.15 bVice versa, What is the average price you receive for fish during the ikan dasar season?
Rp. _________/kg

D6.15b

6.16 Average income from catching shrimp (on a yeraly basis)

No.
a.
b.
c.
d.
e.
f.

Faktor perhitungan
Ikan permukaan
Cumulative months with activity
Average days catching
average caught (kg)
total amount (axbxc=kg)
average price (Rp)
amount of catch (dxe=Rp)

Ikan dasar

D16a

D16b

D16

11

Appendix 5.1 Survey Questionnaire

281

6.17 This past year did you catch any wild animals?
a. yes
b. no

D17

6.18 [If yes], what kind of animal did you hunt, how many and what price did you sell them for?
No.

1
2
3
4
5

Deer
Pig
Bird

Type of animals

Number

price

Total price (Rp.)

D18
6.19 What kind of hunting equipment do you have?
a. tombak
: _______ buah

D19a

b. trap

: _______ buah

D19b

c. arrow

: _______ buah

D19c

d. hunting dogs

: _______ ekor

D19d

6.20 Your income from forestry (a year calculation)

No.

1
2
3
4
5
6
7

Jenis hasil hutan

Wood (m 3)
Rotan (kg)
Damar (kg)
Gaharu (kg)
Honey (liter)

Amount

Market Price (Rp)

Tot. price (Rp.)

D20
6.21 Other income beside agricultural
a. trader
Rp. ____________/month
b. hunter

D21a

Rp. ____________/month

D21b

Rp. ____________/month
Rp. ____________/month
d. labourer: private company Rp. ____________/month
Rp. ____________/month
e. retired
Rp. ____________/month
Rp. ____________/month
f. Carpenter
Rp. ____________/month
Rp. ____________/month
g. handycraft producer
Rp. ____________/month

D21c

c. pubic servant

D21d
D21e
D21f
D21g

h. transport

Rp. ____________/month

D21h

i. from relative (outside vill.)

Rp. ____________/month

D21i

6.22 Is your wife has own income?

a. Yes
b. No

D22

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6.23 [Jika YES]

a. What is her occupation? __________________________
b. How much is her monthly income? Rp. _____________

D23a
D23b

6.24 Are there any of your children have their own income?
a. Yes
b. No

D24

6.25 [Jika YES]

a. What is he/ her occupation? __________________________

D25a

b. How much is his/ her monthly income? Rp. __________________

D25b

ZAPP CH5 SurveyQst

Appendix 5.1 Survey Questionnaire

283

E. EATING PATTERN AND HOUSEHOLD EXPENSES

[TO ANSWER THIS QUETIONNAIRE, RESPONDENT IS TO BE ACCOMPANIED BY WIFE]

1. Main menu inyour family is

a. sago
b. rice

E1

2. How many meals a day does the household have?

a. 3rd times a day
b. twice a day
c. once a day

E2

3. [FOR A FAMILY WHO HAS ELEMANTARY STUDENT]

Do your children usually have breakfast
(before they go to school)
a. Yes
b. no
4. Monthly expenses on food (for a month)
No.
Kind of goods

E3

Amount

Price (Rp.)

Sago

Rice

Meals including vegetables

Fried oil

Sugar

kg

Coffee

ounce

Tea

packets

Cigarettes

packets

Other (add more spaces)

Tot. price (Rp.)

tuman
kg
litre

E4
5. Other monthly expenses apart from food
No.
Jenis Bahan Belanja/Pengeluaran

Amount

Price (Rp.)

Kerosene

litre

Detergent

wadah

Soap

packets

Tooth paste

packets

Medicine

Electricity

Other (add more spaces)

Debt (from loans or other)

Tot. price (Rp.)

E5
6. Monthly consuption for transportation and educational fee
a. Transportation
: Rp. _______ / month
b. Educational fee for children
: Rp. _______ / month
c. Other (add)

284

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

E6a
E6b

ZAPP CH5 SurveyQst

7. During this year, how much money do you spend on clothes including shoes and sandals
No
Details
1 Husband
a. Clothes
b. Shoes/ sandals
2 Wife
a. Clothes
b. Shoes/ sandals
3 Children
a. Clothes
b. Shoes/ sandals

Amount

Price (Rp.)

Total Cost (Rp.)

E7
8. Expenses on taxes, village fees, religious celebrations (annualy)
: Rp. _________
a. Tax
: Rp. _________
b. village fees
c. religious celebrations
: Rp. _________
d. other (add)

E8

9. [Apologies] In this last year, do you have any outstanding debts?

a. Yes
b. No

E9

10. [If Yes] To whom or which party do you owe money to?
To___________________________

E10

11. What is the amount? The amount is Rp. ____________________

E11

12. Do you pay monthly installments?

a. Yes
b. No

E12

13. [If Yes] What is the amount? The amount is Rp. ___________ per month

E13

ZAPP CH5 SurveyQst

Appendix 5.1 Survey Questionnaire

285

PERTAMINA-BP
PROYEK LNG TANGGUH
TANAH MERAH VILLAGE
RELOCATION PROGRAM
Public Facilities/Buildings: Census Sheet
Building number

: _________________

Type of building

: __________________________

Year of establishment

: ________

Size of building

: ______ m x ______ m

Land usage for building

: _______ square metre

[FOR CHURCH OR MOSQUE]

Building capacity

: _______ people

[FOR SCHOOL BUILDING]

The building consists of

: _______ local room class

: _______ local teacher room

[UNTUK BANGUNAN PUSKESMAS PEMBANTU]

The building consists of
: _______ treatment room
: _______ nurses workroom

286

The building was build initiated by

: __________________________

Building conditions now

: a. roof condition

1. Good
2. Half damaged
3. Total damaged

b. wall condition

1. Good
2. Half damage
3. Total damage

c. floor condition

1. Good
2. Half damage
3. Total damage

Data census on

: _________________________

Census by

: 1. _
2. _______________________
3. _______________________

Acknowledge

: 1. _______________________ (Head of village)

2. _______________________ (Kepala Dusun)
3. _______________________ (

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

F. COMMUNITY ACTIVITY
1. Are you (Bapak) active in community activities or organizations?
a. Yes
b. No

F1

2. [If Yes] In what activity or organization are you active in ?

Name of Organization / Activity
a. LKMD

Active as
Organizer Member

F2a

b. Komite Pemukiman Penduduk

F2b

c. Religion

F2c

d. Village security

F2d

e. Arisan

F2e

f. Cooperative

F2f

g. Others:

F2g

3. Are you (Ibu) active in community activities or organizations?

a. Yes
b. No

F3

4. [If Yes] In what activity or organization are you active in ?

Name of Organization / Activity
a. LKMD

Active as
Organizer Member

F4a

b. Komite Pemukiman Penduduk

F4b

c. Religion

F4c

d. Posyandu

F4d

e. Arisan

F4e

f. Cooperative

F4f

g. Others:

F4g

Appendix 5.1 Survey Questionnaire

287

F. NOTES FOR INTERVIEWER

A. Remarks about the respondent (s)
1. Attitude and character of respondent
Fa1

2. Who attended
Fa2

3. Third Party Influence

Fa3

B. Questionnaire problems
1. Difficult numbers
Fb1

2. Difficult to express numbers

Eb2

3. Uncertain answer numbers

Eb3

C. T
Ec

D.

288

Follow-up required

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

ZAPP CH5 SurveyQst

8.13 Housing, Facilities and Utilities Development

8.1

Housing, Facilities and Utilities Development at Tanah Merah Baru

Housing:

Land size for each house is 500 square meters.

Maximum of 51 units of House for RK 1 Villagers

27 prepared Lots for house construction at RK 1

Maximum of 50 units of House for RK 2 Villagers

27 prepared Lots for house construction at RK 2

1 unit of Official House for Head of Village

1 unit of House for Police Liaison

3 units of Houses for Elementary School Teachers

3 prepared Lots for Houses of Elementary School Teachers

1 unit of House for Elementary School Keeper

3 units of Houses for Intermediate School Teachers

3 prepared Lots for Houses of Intermediate School Teachers

1 unit of House for Intermediate School Keeper

1 unit of House for Imam (Moslem Priest)

1 unit of House for Christian Priest

1 unit of House for Catholic Priest

1 unit of House for Doctor

2 units of Houses for Nurses

Appendix 8.18.3 Housing , Facilities and Utilities Development

289

Public Facilities:

1 unit of Community Building and Village Office

1 unit of Co-operative Building and Gallery

1 unit of Elementary School and Kindergarten

1 unit of Mosque

1 unit of Christian Church

1 unit of Catholic Church

1 vacant Lot for Customary Building

1 unit of Soccer Field

1 unit of Volleyball Field at the Central Core

1 unit of Volleyball Field at RK 1

1 unit of Volleyball Field at RK 2

1 vacant Lot for future Post Office/Bank/Phone Booth

1 unit of Health Post/Multi Function Post at RK1

1 unit of Health Post/Multi Function Post at RK2

1 unit of Market Shelter

1 unit of Intermediate School

1 unit of Dormitory for Intermediate School Students

1 unit of Clinic

Public Infrastructure and Utilities:

290

Compacted gravel, unsealed Road Network, 6 meters in width

Power Supply and Distribution Network (photovoltaic and genset hybrid system)

Battery shelter

Genset shelter

Fuel farm shelter

Clean Water Supply and Distribution Network

Pump house

Genset Maintenance Workshop and store room

Solar Panel & Battery Maintenance Workshop and store room

Pump/ Piping Maintenance Workshop and store room

Drainage and Sewerage System

Pour flush latrines with twin pit septic system

1 unit of Jetty and Boat Dock

1 unit of Boat Landing for RK 1

1 unit of Boat Landing for RK 2

5 units of Solid Waste Disposal Site

1 unit of Moslem Cemetery

1 unit of Christian Cemetery

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

1 path for Tanah Merah Baru residents to access sago areas outside the
purchased property boundary

Revegetation of areas around Tanah Merah Baru temporarily cleared for village
construction

8.2

Housing, Facilities and Utilities Development in Onar Baru

Housing:

26 units of Houses

Public Facilities:

1 unit of Elementary School and Kindergarten

1 unit of Puskesmas Pembantu

1 Sports Field

Prepared lots for churches

Public Infrastructure and Utilities:

8.3

Compacted dirt roads

Bridge connecting Onar and Onar Baru

Power Supply and Distribution Network (Photovoltaic and Genset Hybrid System)

Fuel Farm Shelter

Clean Water Supply and Distribution Network

Pump House

Pour flush latrines with twin pit septic system

1 unit of Jetty and Boat Dock

1 unit of Solid Waste Disposal Site

Housing, Facilities and Utilities Development in Saengga

Housing:

94 units of Houses

1 unit of House for Catholic Priest

Public Facilities:

1 unit of Official Head of Village Office and Village Hall

1 unit of Customary Building

1 unit of Womens Development Building

1 unit of Elementary School and Kindergarten

1 unit of Catholic Church

1 unit of Soccer Field

1 unit of Volleyball Court

1 unit of Basketball Court

Appendix 8.18.3 Housing , Facilities and Utilities Development

291

1 unit of Health Post

1 unit of Intermediate School (to be shared with Tanah Merah Baru/Onar)

1 unit of Clinic (to be shared with Tanah Merah Baru/Onar)

Public Infrastructure and Utilities:

292

Compacted gravel, unsealed Road Network

Power Supply and Distribution Network (Genset system)

Genset Shelter

Fuel Farm Shelter

Night Street Lights and Dock Lights

Clean Water Supply and Distribution Network

Pump House

Drainage and Sewerage System

Pour flush latrines with twin pit septic system

2 Small Wooden Jetties and LCT Ramp

Solid Waste Disposal Sites

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

8.4 Detailed Plan for the Physical Relocation of the

Tanah Merah Community from Tanah Merah to

Tanah Merah Baru and Onar Baru

1.

Introduction
As construction of Tanah Merah Baru and Onar-26 nears completion, the Resettlement Team is
preparing for the physical relocation of the Tanah Merah community. A generic move plan providing
an overview of physical, social, spiritual, etc considerations related to the resettlement of the
community was prepared in July 2003. This paper presents a detailed and specific plan for the
physical relocation of the Tanah Merah community. Consistent with the July 2003 document, the
following guidelines have been utilized to develop the plan: (a) resettlement of an entire population
as rapidly as possible; (b) rapid resettlement and rapid establishment of daily life in new location;
(c) minimization of the stress of displacement on the population in terms of food security, lengthy
dislocation of key aspects of life, e.g., religious services, education, health, and (d) engagement of
key community leaders as coordinators/facilitators.
The plan provides the context of the move and subsequently addresses: (a) moving the community;
(b) packing and moving household belongings; (c) catering for the community while physical relocation
is underway; (d) HSE, security, social and environmental considerations for physical relocation; (e)
the management team; (f) logistical support; (g) schedule, and (h) other issues related to the move
and the period immediately thereafter.

2.

Background Information
(a) Population: Table 1 presents population data for the resident population of
Tanah Merah (as defined in the 2002 Census). The November 2002 census
recorded 127 families and a total population of 591. In December 2003 an
informal population count indicated an increase in the number of families from
127 to 142 and a related population increase to 654. The increase in families (15)
and population (63) derives from the splitting of households counted in the 2002

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

293

census. In addition there were an additional 16 migrant families (husband, wife

and, in some families, children) and 70 migrant individuals. The Tanah Merah
community does not recognize these migrant individuals and families as part of
their community.

Location

Table 1. Resident Population Growth in Tanah Merah Village

Nov 2002
Census

December 2003 Population Statistics

Mother

Head

Popn

Head

Popn

TM

101

462

113

Onar

26

129

127

591

TOTAL

Children
Disabled

Pregnant

Breastfeeding

0-2

2-6

513

14

26

54

68

10

29

141

17

142

654

17

34

63

85

10

(b) Household Belongings: The 2002 census recorded household belongings.

Since that time the population has experienced significant increases in
household income and this has, to some extent, been used in purchasing a wide
range of household goods such as furniture, stereos, TVs, VCRs, refrigerators,
etc. Accordingly a new estimate of approximate volume of household belongings
was required. Coordination with Sante Fe (an international moving company)
resulted in a site visit to Tanah Merah. The trip report indicated that households
owned between 12-30 m3 of goods (10 households with 25-30 m3, 117
households with 12-20m3 ), with an average of 21 m3 per household. In addition,
the material in public buildings including the churches, the mosque, the school
and the community meeting hall needs to be moved.
(c) Destination: As indicated above, there are 113 households moving to Tanah
Merah Baru and 29 households moving to Onar Baru. The additional 15
households (over and above the 2002 census) will move with the community.
Those moving to Tanah Merah Baru have been allocated empty lots in the new
village of TMB. While the position that these families will have to build their own
houses has been socialized, discussions regarding when and how these families
will build their houses is on-going. If no housing is available prior to the move,
they will have to temporarily lodge with their parental families. The community
has agreed that migrant families and individuals will have to (temporarily) leave
Tanah Merah to allow the resident population to complete the relocation.
3.

Moving Families
All households moving to Onar (29 households, 141 people) will need to be transported by boat.
Households moving to Tanah Merah Baru will either walk or use boat transport. Currently the plans
call for all adults and children (>6 years of age) to walk to Tanah Merah Baru. Pregnant women,
breast-feeding mothers and their babies, children <6 years of age, the infirm and elderly and disabled
people will use boats to get to Tanah Merah Baru. Hence 341 people will walk and 172 people will
need to be transferred by boat. Upon arrival in Onar, families will walk to their new houses. Upon
arrival in Tanah Merah Baru whether arriving on foot or by boat families will be picked up by bus
and transported to their new residences.

294

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

4.

Packing and Moving Household Belongings

As indicated above, the average volume of household belonging is estimated to be 21 m3. The
majority of these belongings are to be packed and transported by Landing Craft Transport (LCT)
from Tanah Merah to the new villages. Prior to the move the Resettlement Team will use guidelines
prepared by Sante Fe to conduct a training of trainers session with selected villagers to promote
awareness and knowledge of how best to pack, including consideration of difficult items including
seedlings, canoes, etc. In addition the Resettlement Team will provide training in box numbering, use
of labels, inventorying of contents, etc. Trainers will subsequently help households during packing.
Packing materials will be distributed to each household 2-4 weeks before the scheduled move
allowing households to progressively pack the majority of their belongings. It is neither practical nor
feasible to insure contents. The Project will replace items damaged or lost in transit.
The rate of the move will be primarily determined by the capacity (surface area/volumetric capacity
(m3 )) of LCTs, the number of LCTs assigned to the move, and the number of trips able to be completed
per day (this being primarily determined by the tide cycle). At the lower end of the scale, the smallest
LCTs have an area of +/- 120m2 while larger LCTs have an area of up to +/- 300 m2. Depending on
how safely household goods can be stacked, the total volume that could be moved per LCT will vary
between 120 m3 600 m3 or between 6-30 families per LCT. Given the limitations imposed by tide
cycles (refer Schedule section below) it is recommended that two LCTs are used.
As a general guideline, the Resettlement Team aims to move 20 households (comprising +/- 100
people) at a time. Hence physical relocation of the village will take 7-10 days. The house-moving plan
(i.e., which households move on what day) will be determined by house ownership at the point of
arrival rather than at the point of origin. Hence any one group of households will all be immediate
neighbours in the new village, thus strengthening social security and facilitating movement of people
and household belongings, provision of meals, etc. While not overly important, it is desirable to move
the Onar-26 households first. If left until last the old village will have lost too many residents, facilities
(e.g., shops) etc for effective sustenance of the 26 households.
Several days before moving, the 20 families will be advised of the schedule for moving. Each family
will be advised to complete packing by a certain day. Families will also be informed who will be
traveling by boat and who will walk. Finally these families will also receive coupons to obtain meals
(3x/day/person) from the mess hall.
As packing is completed, a team of workers will collect boxes and carry them to a temporary staging
area located near the Calmarine camp. Boxes will be stored under cover and under lock and key until
loading onto the LCT. Another team of labourers will assume responsibility for loading of the LCTs.
Upon arrival in the new villages, labourers will unload belongings from LCTs onto flatbed trucks and
then distribute to each house.
During and once physical relocation of families and household belongings is complete, a contingent of
Project security guards will secure and guard the old Tanah Merah site. Households will be given the
opportunity to return to Tanah Merah to dismantle their old houses. Households express a desire to
retain the galvanized iron roofing and planking of the walls. This activity will be facilitated by provision
of hammers, sledgehammers, and crowbars as well as steel banding tools that allow the material to
be effectively bundled and labeled. A maximum of two weeks after completion of relocation will be
allowed for the collection and transportation of house building materials, after which time PTJO will
demolish the old village.
Finally PTJO has responsibility for final demolition of Tanah Merah.

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

295

5.

Provision of Food Support During the Move

As packing is completed and cooking utensils, crockery, and food stocks are packed, families will
be unable to cater for themselves. Similarly, upon arrival and before all households belongings have
been unpacked, families will need to be provided with food support. The Resettlement Team plans to
provide every family with a five-day meal allowance two days prior to the move during which final
belongings are packed, the day of the move, and two days after the move as gear is unpacked. In
addition an interim food basket will be provided to households until such time that gardens become
productive. The first packet of monthly provisions will be provided upon arrival. Food baskets are
further described in Section 13.
The Resettlement Team will ask UNIVERSAL SODEXHO (the Project camp catering contractor) to
cater for the move. Mess halls will need to be established in Tanah Merah (the community hall or
near Calmarine camp), Tanah Merah Baru and Onar Baru. Meals will be provided in lunch boxes over
a 7-10 day period. A meal plan will need to be developed, catering for 3x meals/day.
In addition, UNIVERSAL SODEXHO will also cater for the labour force engaged to facilitate the
move.

6.

Health, Safety and Environment

Various HSE issues will be addressed as follows:
(a) Equipment: Table 2 lists PPE and other safety gear to be procured by the
Resettlement Team.

Fire extinguishers will be provided to mess halls, placed near temporary

staging areas, loading/unloading areas, and in various locations throughout
the villages.

First aid kits will be procured and distributed throughout the villages. Key
people will be trained in use of materials contained therein. In addition, the
paramedics/doctors assigned to Tanah Merah as well as with PTJO and
FIRMA should remain on site during the move.

PPE will be provided to all teams involved in loading/unloading household

belongings.

The Project will need to allow babies and children to travel on speedboats.
Availability of mother and child life jackets is being investigated. Life
jackets for children will be procured.

Water IGLOOS will be procured and placed throughout the villages to

reduce risks of dehydration.

(b) Training: All management staff need to be well-versed in BP HSE standards. In

addition special attention will be given to:

Training of the Transport Coordinator to provide briefings to villagers moving

to their new village, whether that be on foot or on boats.

Training to the Packing/Moving and Loading/Unloading Managers as well as

the teams engaged to load/unload household belongings from home LCT
truck home.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 2 Safety and PPE Procurement to Facilitate Village Move

Item

Specs

Qty

Fire Extinguishers

10

Childrens Life Jackets

40

Blue

45

Safety glasses

45

Overall (orange)

45

Orange ID jackets

20

Gloves

Dozen

30

Boots

6/7/8

15 each

Water Esky

10-20 ltr

10

First Aid Kits

10

Helmets

(c) Move Prior to Completion of Construction: If the Tanah Merah community

is relocated prior to completion of construction in Tanah Merah Baru or Onar
Baru, special attention may need to be given to ensuring safety of the resettled
population.
7.

Security
The period immediately prior to, during, and after the move will be associated with high levels of
emotion and tension and the likelihood of these spilling over into drunkenness and/or violent incidents
is considered to be high. Coordination with the Babo police has already resulted in the posting of
two police to Tanah Merah in January 2004. They will remain in Tanah Merah until after completion
of the move. Regular security operations should be maintained in Tanah Merah Baru and Onar Baru
during the move. It is recommended that a contingent of police be present to ensure that the move
progresses in an orderly fashion as described in this document.

8.

Social Issues
There are various social considerations related to the physical relocation of Tanah Merah:
(a) Household Belongings: As outlined above the Project will need to commit to
replacement of households belongings that are either damaged or lost in transit.
While this seems straightforward, issues of liability and verification should be
considered and clarified as necessary.
(b) Migrants: While the Resettlement Team is promoting awareness and
understanding of the issues associated with the fate of migrant individuals and
families, and indeed is encouraging the community to deal with the issue proactively, it remains that there is a possibility that a small migrant population
remains in situ. Adequate consideration of how the Project will deal with this
situation is needed.
(c) Additional families: As outlined above, several families have split from their
parental families that were recorded in the 2002 census. While it has been made
clear that no houses are being provided for these families, these families may

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

297

dig in their heels in search of some benefits. Adequate consideration of how

the Project will deal with this situation is needed. It may be useful to deal with
this issue pro-actively (i.e., facilitate family access to empty plots in TMB so that
they can start building their houses prior to the move).
(d) Community Refusal to Move: While deemed unlikely, the possibility that the
entire community digs in their heels in search of some additional benefits,
(e.g., a move allowance, payment for their houses, etc., needs to be considered).
Adequate consideration of how the Project will deal with this situation is needed.
(e) Land Title: When is title to land (Hak Milik) to be provided to households in
TMB?
(f) Village Handover: It is desirable to handover the completed villages to the
recipient communities as soon as possible after completion of construction.
Two issues need to be considered: (i) when this is to occur (especially if the
population is relocated prior to completion of all construction) and (ii) what
is the formal mechanism for handing over the village and village/community
acceptance of the village as closure of agreement. (And separately, what type of
ceremony is envisaged?)
A formal handover ceremony will occur two weeks after the move. The Tangguh
Project Director and BP President and provincial, district and local government
will attend the ceremony.
(g) Demolition of Tanah Merah: Are there any legal considerations pertaining to the
demolition of Tanah Merah?
9.

Environmental Considerations
There are no specific environmental considerations for the move itself. Removal of debris from TMB
and the demolition of Tanah Merah requires input as to where all debris should be stockpiled. The
Tangguh Field team will need to liaise with PTJO requiring management of debris and with KJP on
the preferred location of the village debris.

10.

Coordination Team
Table 3 describes the team for management of the physical move. The entire Resettlement Team
(7) will be on-site the Resettlement Managers will provide overall management while other team
members will have specific roles in accordance with the table below. In addition assistance from
CAFT staff assigned at TMB as well as HSE will be required. Other BP contributions (HSE, security,
logistics) are not listed as specific positions.
In addition PTJO and FIRMA contributions are to include:
(a) One staff member to assist coordination of move;
(b) Communications/radio operator;
(c) Medical staff;
(d) Catering staff.

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BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Table 3 Staff Requirements for Management of Village Move

Location

No.

A Tanah Merah

Responsibility

Resettlement Manager (Rob Gerrits)

Liaison Officer (Winfrids Mofu)

General contact person for all villagers concerns

Communications (Calmarine)

Radio Operator ensuring communications between TM

and TMB and Onar Baru

Transport Coordinator (Irma Fernandez)

Ensures families are informed of schedule for moving,

have meal coupons, are packed, are briefed on safety
issues, etc

Loading Coordinator (Richard Kalialago)

Manager of loading of LCT; responsible for loading

documents

HSE Officer

Health Safety and Environment monitoring

Village Team

Counterparts

Labour (3 teams of 10, 2 in TM and 1x in

Onar Baru/TMB)

30

Collection and transport of household belongings; 2

teams in the village, one collecting from houses and
the other loading the LCTs; one team in TMB or Onar
Baru unloading LCT and distributing to houses.

B Tanah Merah Baru / Onar Baru

1

Resettlement Manager (Richard Harrison)

Liaison Officer (Rosalina Rumbino)

General contact person for all villagers concerns

Communications (PTJO/FIRMA)

Radio Operator ensuring communications between TM

and TMB and Onar Baru

Transport Coordinator (Lina Moeis)

Monitor movement of people and belongings and

coordinates buses, trucks, meals, etc

Unloading and Distribution Coordinator

(CAFT staff Habel Simua, Ladis Serang)

Manager of unloading of LCT, loading of trucks and

distribution to houses

HSE Officer

Health Safety and Environment monitoring

Villagers assigned to adult and child orientation and

entertainment in new village

Village Team
Adult and Child Orientation/Entertainment
Officer

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

299

11.

Logistics
Table 4 and 5 outline logistical arrangements to support the physical relocation of Tanah Merah.

Table 4. BP and Contractor Staff Requirements to Support Village Move

No Position

Source

No.
Required

BP

PTJO

FIRMA

Liaison Officer

Communications

Transport Coordinator

Unloading and Distribution Coordinator

HSE Officer

Security

Health (TM/TMB/Onar Baru)

Communications

Contractor Staff

Table 5. Equipment and Material Requirements to Support Village Move

No Item
1

Fuel (at TMB to facilitate continuous operations of

speedboats)

Speedboats (CTB and 1x other)

1

No.
Required

Source
BP

PTJO

FIRMA

LCTs

Flatbed Trucks (in TMB and Onar Baru)

Bus (TMB only)

Car (TMB only)

Communications (Radio TM, TMB, Onar)

Handsets

1 PTJO contractual obligation to provide 1 LCT for 10 days

12.

Schedule
Need specific dates to develop specific plan. General outline as follows:
(a) Utilize two LCTs to facilitate transport of household goods.
(b) Tides will only allow one trip per day. LCT beaches at TM, is loaded and then
sails on high tide to TMB or Onar Baru. At TMB or Onar Baru it is unloaded and
then sails back and beaches at TM at next high tide.

300

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

(c) Can operate two LCTs in tandem or in rotation depending on size of LCT. Prefer
larger LCTs so that we can operate on rotation for TMB. Will operate in tandem
for Onar.
(d) Given readiness of household belongings for loading, i.e., in staging area, this
exercise should not be too difficult.
13.

Other
(a) Participation of government and independent observers
It is strongly recommended that a government move committee be established
to work together with the Project for the period leading up and including the
village move. The establishment and participation of government aims to ensure
that the government and the Project develop a suitable working relationship
with common objectives, awareness and understanding of potential issues and
mechanisms to deal with issues/problems as and when they arise. Participation
from District and Sub-district government should be planned. Participants should
include government, departments of health and education, police and military.
In addition it has also been recommended that the Project identify a number
of independent observers, e.g., university, NGO or other, to witness the village
move.
(b) Village Handover
As indicated above it is desirable to handover the completed villages to the
recipient communities as soon as possible after completion of construction. In
the first week after the move, households will be asked to complete a standard
checklist verifying working condition of all house components and will so be
given an opportunity to report faults, etc.
A formal handover ceremony will occur two weeks after the move. The Tangguh
Project Director and BP President and provincial, district and local government
will attend the ceremony.
(c) Permitting
Operation permits will be required for some of the public facilities in TMB
and Onar Baru, especially the jetties, boat landings and electrical gensets.
Formal handover of these facilities to TMB and Onar Baru is a precondition for
community application for operational permits.
(d) Food Security
BP will need to provide a food basket for a period of 3-8 months after the
physical relocation of the population. The period has been defined in terms
of the minimum time after which cassava may be reasonably expected to be
available for harvest (i.e., six months from time of planting), the additional two
months accounting for the initial disruption associated with the move and hence
lack of time to commence agricultural activities. Household consumption data
indicates that most household food needs are met by purchasing food from dry
goods kiosks or from vegetable traders from Tofoi/Kelapa Dua although there is
a significant amount of intra-village bartering with fresh vegetables. In principle,

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

301

dry goods should not form part of the food basket because resettlement is not
significantly affecting the ability to purchase such goods (although access to
kiosks may be reduced). Nonetheless it is recommended that the food basket
includes some contribution to household dry goods consumption if for no other
reason than keeping the community on-side.
The composition of the food basket to be provided to each household needs to
be defined. The Resettlement Team has been collecting field data regarding the
type and quantity of food consumption and is also coordinating with nutritionists
and doctors regarding the best option. Thereafter the logistics of supply will
need to be evaluated. A warehouse will have to be available on site in TMB and
Onar Baru to store these rations.
(e) Distribution of Seed, Garden Tools and Plants

Households will be provided with a package of vegetable and field crop seed,
fruit tree seedlings, perennial vegetables, spice crops, ornamental plants, and
basic set of garden tools (machete, crowbar, shovel, hoe, weeding knife). These
items will be distributed soon after the physical relocation of the community.
(f) Facilities Manager
A Facilities Manager will be recruited for a 1-2 year period, preferably
commencing 1-2 months prior to the move. The Facilities Manager will assume
responsibility for assisting villagers in operations, maintenance and repair of
facilities and services (electricity, water) sourcing spare parts, and as liaison for
issues related to the physical infrastructure and operation of the village. A Terms
of Reference is currently being developed.
In addition purchase and provision of: (a) spare parts for services and houses,
and (b) fuel supplies for the generator need to be considered. Generator fuel tank
capacity is 5,000 liters in TMB and 2,000 litres in Onar Baru.
(g) Education and Health
The new villages of TMB and Onar Baru have facilities for primary and secondary
school education (the latter with boarding school) and health services provision.
While the Resettlement Team has encouraged the community to approach local
government to ensure provision of staff, equipment and materials there has been
limited action on these issues. Given the time taken to incorporate new staff,
equipment and material requirements into government budgets, the Project will
undertake to provide salaries for personnel for a period of 2 years to ensure that
the new facilities and services are operational. [Note: Extreme caution is needed
in the provision of these subsidies to ensure that the Project does not become
obliged to support these inputs into the future the design of these subsidies
needs to incorporate both government and community obligations and ensure
progressive handover of responsibilities. The World Bank (Indonesia) has useful
experiences from which the Project can learn how to best approach this issue.
GPA, ISP and Resettlement need to coordinate on actioning this item as soon as
possible].
(h) On-going LARAP Commitments
The Land Acquisition and Resettlement Action Plan (LARAP) outlines a
comprehensive, medium-term plan for the social and economic development

302

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

of the resettlement-affected villages. Following relocation, implementation of

the programs contained within the LARAP needs to be continued. In YR2004,
the Resettlement Team can continue in its role (budget provided from A&D) but
progressive integration with ISP is required. In YR2005, both staff and budget for
LARAP implementation will be the responsibility of ISP.
Initial discussions regarding the integration of ISP and A&D Resettlement have
taken place. Further discussions regarding integration and on-going management
of resettlement are scheduled in YR2004.

Attachment 1 Packing Materials (based on estimates provided by Sante Fe)

Item

Specs

Qty

Carton

Large

2,600

Carton

Medium

1,965

Carton

Small

1,270

Labels/Stickers

127x100/hld

Strapping device

20

Nylon tape

metres

2,000

Rope (5 mm nylon)

metres

3,810

Rope (10 mm nylon)

metres

500

Corrugated roll

127

PVC Tape

1,280

Cutting knife

Wrapping paper (rolls)

Newsprint

Bubble wrap (rolls)

Markers

Waterproof

- Black

254

- Blue

254

Pens
Tarpaulins

40
138
33

254
6x8m

30

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

303

304

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

KETERANGAN

TEMPAT KHUSUS

NOMOR KARTON

NOMOR RUMAH

NAMA

KETERANGAN

TEMPAT KHUSUS

NOMOR KARTON

NOMOR RUMAH

NAMA

TMB

TM
1011

45

Gerardus Sabandava

TUJUAN

ASAL

10

Onar

TM
M. Agofa

TUJUAN

ASAL

Attachment 2 Sample Moving Label

Attachment 3 House Allocation Map Tanah Merah Baru

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

305

Attachment 3 House Allocation Map Tanah Merah Baru (cont.)

306

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

307

Latitude :
22552.54S
Constituent
: S0 M2
S2
N2
K2
K1
O1
P1
M4 MS4
Z0
Longitude: 1330720.73E
Amplitude (cm): 183 89
27
20
45
27
3
2 215
Location : Tanah Merah 2000
Phase g (deg) :
179 272 125
- 347 313
- 322
58
Time Zone: GMT+9
Annual correction for K1: 10%
Annual correction for O1: 16%
Period of MAY 2004
Tide unit: centimeter
================================================================================================================================
Day\Time 01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
-------------------------------------------------------------------------------------------------------------------------------1 |
204 224 240 247 240 223 200 178 163 159 167 186 214 246 274 292 293 276 246 210 178 155 144 149
2 |
167 195 228 256 271 268 250 223 195 175 166 171 189 217 251 281 298 293 268 228 184 145 120 113
3 |
124 153 195 241 280 300 297 274 240 206 181 168 172 191 224 261 292 305 292 255 204 151 109
85
4 |
83 104 148 205 264 310 330 322 291 250 210 181 167 173 197 234 275 305 310 285 236 175 117
74
5 |
53
60
95 153 224 292 340 356 340 300 252 208 178 166 176 205 248 290 315 310 273 212 143
83
6 |
42
29
47
96 168 250 322 366 374 348 301 248 203 174 166 182 218 264 304 321 304 254 185 113
7 |
54
20
16
47 108 190 277 347 383 381 346 294 240 196 171 169 191 231 278 312 319 290 232 159
8 |
88
35
9
16
57 128 216 301 364 390 378 337 283 231 191 171 174 201 243 286 313 309 272 209
9 |
137
73
28
11
27
77 152 239 318 371 386 367 324 271 222 187 172 180 209 250 288 306 294 253
10 |
192 126
69
33
25
48 101 176 257 326 367 374 351 308 260 216 185 174 184 213 250 281 293 278
11 |
237 182 125
78
51
48
74 126 196 267 325 356 358 334 294 250 210 183 174 184 210 242 269 277
12 |
263 229 183 136
98
76
77 101 148 208 269 316 341 340 318 282 241 204 179 169 177 200 229 253
13 |
263 255 231 196 158 126 106 105 125 164 213 264 304 325 324 304 271 232 196 170 158 164 185 213
14 |
239 256 257 243 217 186 156 136 131 144 173 213 256 291 311 312 293 260 221 183 155 142 147 167
15 |
199 232 257 269 264 244 215 185 162 150 155 177 210 249 282 302 302 281 246 204 164 135 121 127
16 |
152 190 233 269 289 289 271 242 209 180 163 162 178 208 245 278 296 292 268 228 182 140 111
99
17 |
110 143 191 244 289 313 314 295 261 224 192 170 166 180 210 246 278 291 281 250 204 155 113
86
18 |
81 100 144 203 265 313 337 334 310 272 232 196 174 169 185 216 253 280 286 266 226 175 125
86
19 |
65
69 100 155 224 290 337 356 346 315 274 232 197 176 176 195 228 262 281 276 246 198 144
96
20 |
63
52
67 111 177 251 316 356 365 346 310 267 227 196 181 186 210 243 271 279 261 220 167 114
21 |
72
48
49
78 133 206 280 337 366 363 337 298 256 220 195 188 200 227 258 276 272 241 192 138
22 |
89
56
44
58
99 162 237 305 350 365 351 319 280 242 213 197 198 216 244 268 276 259 219 166
23 |
114
73
51
52
78 128 195 265 322 353 354 331 296 259 228 207 200 209 231 257 274 270 242 197
24 |
145
99
69
58
70 105 160 226 287 330 346 335 307 272 239 215 203 204 218 242 264 272 259 226
25 |
180 133
96
76
75
96 136 191 250 300 328 331 312 281 249 221 204 198 206 224 247 264 266 248
26 |
214 171 132 104
93 100 125 166 217 266 303 318 312 289 258 228 205 192 192 203 223 244 259 258
27 |
240 210 174 143 123 117 127 153 191 234 273 299 305 293 268 238 210 189 179 181 195 215 237 251
28 |
252 239 216 188 163 147 144 154 176 208 243 273 291 293 278 252 221 193 172 163 166 180 202 226
29 |
245 253 248 232 211 189 174 168 174 192 217 245 270 284 283 268 240 207 175 152 141 144 161 187
30 |
217 244 262 267 257 238 216 197 187 187 199 219 243 266 280 279 262 230 192 155 128 115 120 140
31 |
173 214 252 281 293 287 266 239 214 197 192 199 216 241 266 281 280 258 220 174 131 100
87
95
================================================================================================================================

TIDE PREDICTION FOR MAY 2004

Attachment 4 Tide Charts May-June-July 2004 (Data provided by CALMARINE)

308

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Latitude :
22552.54S
Constituent
: S0 M2
S2
N2
K2
K1
O1
P1
M4 MS4
Z0
Longitude: 1330720.73E
Amplitude (cm): 183 89
27
20
45
27
3
2 215
Location : Tanah Merah 2000
Phase g (deg) :
179 272 125
- 347 313
- 322
58
Time Zone: GMT+9
Annual correction for K1: 10%
Annual correction for O1: 16%
Period of JUNE 2004
Tide unit: centimeter
================================================================================================================================
Day\Time 01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
-------------------------------------------------------------------------------------------------------------------------------1 |
122 166 219 270 307 323 315 289 254 222 199 189 194 213 242 270 287 283 255 208 154 105
72
60
2 |
73 110 167 233 295 337 352 337 303 260 221 194 182 189 213 246 279 295 286 249 192 131
78
45
3 |
37
59 108 178 256 324 366 374 350 306 257 213 184 174 186 216 256 290 303 286 239 174 107
53
4 |
23
23
55 117 198 284 352 388 386 352 300 245 200 172 167 186 224 268 301 308 281 224 154
86
5 |
35
11
20
63 135 224 311 374 400 386 343 285 229 186 162 164 190 234 279 308 307 270 208 136
6 |
71
26
11
29
81 161 252 334 386 399 375 325 266 211 172 155 164 197 243 287 310 300 257 193
7 |
124
66
29
22
49 107 189 275 347 387 387 355 302 245 195 162 152 167 204 250 289 305 289 244
8 |
183 121
72
44
45
77 137 214 291 350 376 366 330 278 225 181 154 150 169 207 251 285 295 276
9 |
235 181 129
89
69
75 108 165 233 298 342 356 341 304 256 208 170 149 148 170 206 246 275 283
10 |
267 233 189 147 116 101 108 138 187 244 294 326 332 315 280 236 194 161 143 145 166 200 236 264
11 |
274 264 240 207 174 148 135 140 163 201 245 283 306 308 291 259 220 182 151 135 137 157 189 225
12 |
254 270 270 256 232 205 181 167 166 181 207 240 269 287 288 272 243 206 169 140 124 126 145 177
13 |
215 251 275 285 279 260 235 210 191 184 189 207 231 255 271 273 258 229 192 155 125 109 111 132
14 |
168 212 256 289 306 304 287 260 231 207 193 191 203 224 246 262 262 246 215 176 138 108
93
97
15 |
122 165 218 270 310 329 327 307 276 243 214 194 189 199 220 243 258 256 235 199 157 117
88
77
16 |
86 119 171 233 291 333 350 343 317 282 244 212 192 187 199 223 246 258 250 222 180 135
96
71
17 |
65
83 126 188 256 316 353 363 348 316 276 237 205 188 188 205 231 253 259 242 206 159 113
77
18 |
57
60
90 143 213 284 339 367 366 341 303 261 224 197 186 194 217 244 262 258 231 187 137
93
19 |
62
52
66 107 170 243 311 356 370 356 323 282 241 208 189 188 204 232 258 268 254 217 167 117
20 |
78
56
57
83 134 202 274 332 362 362 336 296 255 219 194 185 194 219 249 270 271 246 201 149
21 |
103
72
60
72 109 167 236 300 344 358 342 307 265 226 197 182 184 203 233 263 278 268 235 187
22 |
137
98
76
75
97 141 202 266 318 345 342 314 274 232 199 178 173 185 212 245 272 279 263 225
23 |
178 134 102
90
98 128 175 233 287 325 335 319 283 241 202 175 162 167 187 219 252 275 277 257
24 |
219 177 140 117 113 127 160 206 257 299 321 318 292 252 211 176 155 149 161 187 221 254 274 274
25 |
254 221 185 156 140 140 157 189 229 270 300 310 298 267 226 186 155 138 137 153 182 218 250 270
26 |
272 257 231 203 179 167 168 183 210 243 274 294 296 278 246 206 167 137 122 124 142 173 210 244
27 |
268 276 269 250 227 206 193 191 202 222 247 270 284 282 263 231 191 152 122 106 108 127 160 200
28 |
240 271 288 289 275 254 231 214 207 210 224 243 262 274 273 255 223 182 140 107
89
90 110 146
29 |
193 241 282 308 314 302 278 251 227 212 210 218 234 254 268 270 253 220 174 128
90
70
70
93
30 |
135 190 250 301 333 341 326 296 261 229 208 201 207 226 249 269 273 256 218 167 115
73
51
53
================================================================================================================================

TIDE PREDICTION FOR JUNE 2004

Attachment 4 Tide Charts May-June-July 2004 (Data provided by CALMARINE) (cont.)

Appendix 8.4 Detailed Plan for the Physical Relocation of Tanah Merah

309

===================================================================================================

Latitude :
22552.54S
Constituent
: S0 M2
S2
N2
K2
K1
O1
P1
M4 MS4
Z0
Longitude: 1330720.73E
Amplitude (cm): 183 89
27
20
45
27
3
2 215
Location : Tanah Merah 2000
Phase g (deg) :
179 272 125
- 347 313
- 322
58
Time Zone: GMT+9
Annual correction for K1: 10%
Annual correction for O1: 16%
Period of JULY 2004
Tide unit: centimeter
================================================================================================================================
Day\Time 01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
-------------------------------------------------------------------------------------------------------------------------------1 |
80 130 196 266 325 360 365 343 304 260 222 196 187 196 220 250 275 281 260 216 158 101
56
34
2 |
40
74 135 211 290 352 383 380 348 300 249 206 179 172 187 219 257 285 290 263 212 148
87
43
3 |
24
35
78 148 234 316 375 398 384 341 285 229 185 161 160 184 225 268 297 296 263 205 137
76
4 |
35
21
40
92 171 260 340 390 402 375 323 262 205 164 145 153 186 234 280 306 299 259 197 129
5 |
72
36
29
57 116 198 286 357 395 392 355 297 234 180 144 134 151 192 245 290 310 296 252 190
6 |
126
75
47
48
82 145 226 306 364 387 371 325 266 206 157 130 128 154 201 254 295 309 290 245
7 |
187 131
89
68
76 113 176 250 317 359 367 341 292 234 180 140 120 127 159 207 258 294 303 283
8 |
242 192 145 111
98 109 146 203 265 317 344 339 308 259 206 159 127 115 128 163 211 257 289 295
9 |
278 244 204 167 141 132 144 176 222 271 307 320 308 275 230 184 144 118 112 129 164 209 252 281
10 |
290 279 255 224 195 174 166 174 198 233 267 289 293 278 247 207 167 133 112 110 127 161 204 245
11 |
275 289 287 271 249 225 206 195 197 212 233 255 269 268 253 225 190 154 124 107 106 123 156 198
12 |
240 275 295 301 293 275 252 231 216 210 215 227 241 250 249 235 210 177 144 116 100
99 117 150
13 |
194 240 281 308 319 314 297 272 247 226 214 211 218 229 237 237 224 200 168 134 107
91
92 111
14 |
147 196 248 295 326 338 331 310 282 252 226 209 204 210 222 232 233 219 193 158 124
96
82
85
15 |
108 150 205 264 314 344 352 340 313 279 245 217 200 197 206 222 234 234 217 186 148 112
85
74
16 |
82 112 161 224 286 334 359 358 337 303 265 230 204 191 194 210 230 243 238 215 178 136 100
76
17 |
70
85 124 182 249 310 351 364 352 321 282 242 209 189 185 197 221 244 254 242 211 168 124
89
18 |
71
73
98 146 210 278 332 360 359 333 294 252 214 188 177 184 207 237 261 264 244 204 157 114
19 |
84
73
84 119 175 242 305 347 359 341 304 259 217 185 168 169 189 222 256 276 271 242 196 148
20 |
108
85
83 105 148 209 273 325 351 345 313 267 220 182 158 153 168 199 239 273 287 274 238 189
21 |
143 110
95 103 132 182 242 299 336 344 321 278 227 182 150 137 144 170 211 255 286 293 273 233
22 |
186 146 120 114 128 164 215 270 315 336 326 291 240 189 148 124 121 139 175 222 266 293 295 272
23 |
232 190 156 137 138 158 195 242 289 320 325 302 258 205 156 121 105 111 137 180 229 272 296 295
24 |
272 237 201 173 161 165 186 221 261 297 314 307 276 228 176 131 101
92 103 135 181 232 273 296
25 |
296 278 249 219 196 186 190 208 238 270 294 302 287 252 205 156 114
88
82
97 132 179 229 272
26 |
297 302 290 267 241 220 208 209 222 244 267 284 286 269 235 190 143 104
79
74
90 125 173 225
27 |
271 301 313 307 288 263 240 224 219 225 240 257 270 272 257 226 184 138
98
72
66
82 117 166
28 |
222 274 312 330 328 310 282 253 230 218 218 228 243 258 263 253 226 185 137
95
66
58
72 108
29 |
161 223 283 328 351 349 327 292 255 225 207 202 211 230 250 262 257 232 189 138
92
60
49
64
30 |
103 162 231 298 348 371 365 335 291 247 210 187 183 196 221 250 269 267 241 194 139
88
54
43
31 |
60 103 169 246 318 368 386 371 331 279 227 187 164 164 184 220 257 281 279 249 198 138
85
50

TIDE PREDICTION FOR JULY 2004

Attachment 4 Tide Charts May-June-July 2004 (Data provided by CALMARINE) (cont.)

310

BP Tangguh LARAP Land Acquisition and Resettlement Action Plan

Plates

Plates

311

BP Tangguh LARAP

Land Acquisition and

Resettlement Plan