Environmental and Social Monitoring Report

Project Number: 38919

April – September 2013

INDONESIA: Tangguh Liquefied Natural Gas Project

Integrated Social Programme
Tangguh LNG – Operations Phase

Prepared by BP Berau Limited

Tangguh LNG Project Operator

This report has been submitted to ADB by BP Berau Limited and is made publicly available in
accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of
ADB.
Operator’s 6 Monthly Social Report
Integrated Social Programme
Tangguh LNG – Operations Phase

April 2013 – September 2013

 Contents


1. OBJECTIVE AND SCOPE ......................................................................................... 4
2. REPORT METHODOLOGY ....................................................................................... 4
3. TANGGUH SOCIAL PERFORMANCE – EXECUTIVE SUMMARY ........................... 5
4. TANGGUH LNG UPDATE ....................................................................................... 7
5. INTEGRATED SOCIAL PROGRAM .......................................................................... 7
5.1.
The
Social
Management
Plan ............................................................................................ 7
5.1.1.
Livelihood ........................................................................................................................... 7
5.1.2.
Education ........................................................................................................................... 9
5.1.3.
Health ................................................................................................................................. 9
5.1.4.
Governance ..................................................................................................................... 11
5.1.5.
Community
Relations..................................................................................................... 13
5.2.
Social
Monitoring
Plan....................................................................................................... 14
5.2.1.
Livelihood ......................................................................................................................... 14
5.2.2.
Education ......................................................................................................................... 16
5.2.3.
Community
Health ......................................................................................................... 18
5.2.4.
Governance ..................................................................................................................... 19
6. EXTERNAL PANEL ANNUAL REVIEW AND NON-COMPLIANCE STATUS
UPDATE ...................................................................................................................... 23
7. EVALUATION RESULT.......................................................................................... 24
















































 List of Tables and Figures




List of Tables
Table
1
Number
of
Operation
Workforce
at
Tangguh
LNG
Site
.....................................
16

Table
2.
AMDAL
Workforce
Commitment
vs.
Actual
during
Operation
Phase ................. 28
Table
3
MCU
program
in
Teluk
Bintuni
Hospital
in
2013....................................................... 31
Table
4
Scholarship
program
delivered
for
local
students
in
2008
–
2013 ........................ 34

List of Figures
Figure
1.
Documentation
of
the
agriculture
program
in
Tanah
Merah
Baru
Village.
The

program
supplies
fresh
fruits
and
vegetables
to
Tangguh
Catering ..................... 14
Figure
2.
Documentation
of
renovation
project
and
opening
ceremonial
of
3
new
classes

building
in
Onar ............................................................................................................. 17
Figure
3
.
Malaria
training
for
health
providers
and
malaria
survey
in
one
DAVs. ............. 18
Figure
4 Documentations
of
Community
Action
Projects
in
the
DAVs
Villages ................ 20
Figure
5
Documentation
of
community
cemetery
visit
in
Tangguh
LNG
area
during
2013

Easter
day ...................................................................................................................... 21
Figure
6
Socialisation
for
local
communities
and
military...................................................... 21
Figure
7
Documentation
of
Cultural
Program
during
Independence
Day
and
Opening

Ceremonial
of
Onar
School ......................................................................................... 22
Figure
8
Documentation
of
Agriculture
Program
in
DAVs:
Commercial
and
Subsistence

project ............................................................................................................................. 25
Figure
9. Vegetable,
Fruit
and
Fish
delivery
from
Stocking
Points
to
Tangguh
LNG

Catering......................................................................................................................... 26
Figure
10
Documentation
of
Bicycle
Workshop
in
Babo ....................................................... 26
Figure
11
The
average
of
annual
invome
per
household
in
DAVs
(in
rupiahs) ................... 27
Figure
12

Papuan
Workforce
Composition
Trend
in
Tangguh
Operation
2010-2013
......
29

Figure
13

Student
Graduation
in
National
Exams
and
Participant
Ratio
in
Bintuni
Bay

Regency ...................................................................................................................... 29
Figure
14
Malaria
Prevalence
in
DAVs
and
Selected
Villages............................................... 30
Figure
15
Case
Fatality
Rate
due
to
Diarrhea
in
DAVs .......................................................... 31
Figure
16 Community
perception
on
Welfare
(Welfare
Index)
in
DAVs.............................. 33
Figure
17
The
trend
of
DAVs
and
Papuan
Workforce
in
Tangguh
operation ..................... 33
Figure
18
Capacity
progress
of
Indigenous
Firms
in
the
latest
condition. .......................... 35
Figure
19
Number
of
contract
won
by
local
firms
during
2006
until
September
2013 .... 35
Figure
20
the
handover
ceremony
of
folklore
story
books
from
the
TLO
team
to
Local

government
and
art
performance
of
Babo
community
during
Independence

Day
commemoration
2013.
These
are
as
recognition
and
effort
of
Tangguh

commitment
to
kept
the
local
values ....................................................................... 36
1. OBJECTIVE AND SCOPE


The
progress
of
social
program
implementation
captured
in
this
report
is
provided
for

the
Asian
Development
bank
(ADB)
and
the
Japanese
Bank
for
International

Cooperation
(JBIC)
Lenders
Group
as
per
requirement
under
Section
1.12
of
the
ADB

Tranche
PSC
Parties
Agreement
(or
Section
1.18
of
the
JBIC
Tranche).

The
scope
of

the
report
includes
monitoring
of
the
Integrated
Social
Program
(ISP)
Implementation

for
the
period
of
April
–
September
2013
and
program
evaluation.

2. REPORT METHODOLOGY


This
report
has
been
prepared
with
reference
to
the
ISP
monthly
reports,
site
visits,

discussions
with
various
program
coordinators,
and
reports
from
ISP
implementing

partners,
including
the
British
Council,
Yayasan
Sosial
Agustinus
(YSA),
Mediatama

Cipta
Citra
(MCC),
Bina
Swadaya,
Andalan
Unggul,
LP3BH
Manokwari,
University
of

Cendrawasih,
and
the
Gadjah
Mada
University
(UGM).
Several
documents
on
the

evaluation
aspects
were
also
assessed
to
understand
the
program
achievements
and

challenges.






















































3. TANGGUH SOCIAL PERFORMANCE – EXECUTIVE SUMMARY


As
part
of
the
company’s
commitment
to
mitigate
Tangguh
LNG’s,
social
and

environmental
impacts
and
to
remain
in
compliance
with
AMDAL
and
PSC
parties’

agreement,
BP
continues
to
conduct
the
community
investment
program
with
greater

engagement
with
the
local
administration.
The
second
phase
of
Tangguh’s
social

program
called
the
Community
Investment
Program
covers
the
period
of
2011-2015.


In
this
second
period,
the
strategy
focuses
more
towards
“Working
with
Community”

from
“Working
for
Community”
to
aim
for
the
sustainability
of
development.




The
Community
Investment
Program
is
carried
out
to
support
the
local
development
of

the
Teluk
Bintuni
regency.

There
are
five
priority
programs
namely
Livelihood,

Education,
Health,
Governance
and
Community
Relations.
In
this
reporting
period,
the

program
has
delivered
several
outputs
and
outcomes
targeted
at
beneficiaries
in
the

directly
affected
villages
(DAVs),
particularly
the
indigenous
community.





The
livelihood
program
has
created
opportunities
and
access
for
the
locals
to
increase

their
household
income.
During
this
reporting
period,
the
program
is
focused
in

assessing
and
expanding
the
local
market
and
other
potential
economic
developments

in
order
to
reduce
dependency
towards
Tangguh
LNG.

Some
micro-enterprise

program
initiatives
in
the
community
have
successfully
provided
an
alternative

household
income.





Significant
contribution
to
the
community
health
program,
including
maintaining
a
low

level
of
malaria
prevalence
and
diarrhea
case
fatality
rates
helps
reduce
the
number
of

people
from
Teluk
Bintuni
succumbing
to
these
diseases.
The
Tangguh
community

health
program
continues
to
develop,
provide
new
initiatives,
and
create
adequate

referral
health
system
in
the
community.
However,
there
are
some
challenges
in
the

implementation
of
good
health
practices
for
the
community
due
to
social
and
culture

barriers.





The
education
program
continued
to
improve
the
learning
processes
and
the
capacity

of
key
stakeholder
in
education
including
schools
and
teachers
therefore
contributing

to
the
increase
in
the
overall
quality
of
education
in
Teluk
Bintuni.
Some
significant

contributions
include
the
increase
of
student
final
graduation
passing
rates
at
all
levels

as
well
as
the
quality
of
human
development
index
across
Teluk
Bintuni.

This

continuous
support
will
help
Teluk
Bintuni
regency
in
developing
good
quality
human

resources
to
champion
the
local
development
and
to
fulfill
Tangguh
project
activity
in

the
future.





The
governance
program
continued
to
create
and
improve
the
capacity
of
local

government
in
implementing
good
governance
that
is
strong,
clean
and
transparent.


Those
efforts
are
pursued
through
systematic
approach
in
the
form
of
training
and

technical
assistance
for
the
government
officials,
in
both
the
executive
and
legislative

bodies.

April – September 2013 Page|5

The
program
also
continues
to
optimize
the
role
of
NGOs
and
tribal
institutions
in
local

development
processes.
Civil
Society
Organization
(CSO)
strengthening
programs
in

collaboration
with
LP3BH
Manokwari
has
provided
opportunity
for
local
NGOs
to

improve
their
organization,
capacity,
and
to
build
relationships
among
them.





The
overall
Tangguh
social
programs
have
shown
significant
contribution
to
local

development
and
welfare.
The
participation
and
contribution
of
community
and
local

administration
on
the
implementation
program
have
increased
and
this
needs
to
be

maintained.
However,
Tangguh
needs
to
continuously
promote
independence
for
the

locals
and
communicate
to
the
local
government
to
ensure
the
long
term
sustainability

of
the
social
programs.

In
response
to
the
non-compliance
related
to
the
grievance
process,
which
was
raised

by
the
Lenders
External
Panel
team
after
their
visit
in
early
2013,
a
comprehensive

action
has
been
conducted.

The
grievance
management
and
its
procedure
have
been

clarified
including
the
role
and
responsibility
of
each
function
and
the
process
to
ensure

that
the
response
was
delivered
within
the
time
limit
defined
in
AMDAL.

April – September 2013 Page|6

4. TANGGUH LNG UPDATE

Tangguh
is
in
steady
operation
at
design
capacity
and
is
now
focusing
on
continuous

improvement
in
the
safety
and
efficiency
of
all
aspects
of
the
business;
maintaining

production
reliability;
and
strengthening
the
succession
plan
and
nationalization
of
key

leadership
roles
through
robust
people
development
program
and
activities.

As
many
as
57
LNG
cargoes
and
12
condensate
cargoes
were
delivered
during
May
to

October
2013.

By
end
of
May
2013,
390
LNG
cargoes
and
91
condensate
cargoes

have
been
delivered
since
its
start
up
in
2009

In
its
current
operations,
Tangguh
has
six
Sales
and
Purchase
Agreements
(SPA)
to

supply
LNG
to
Posco
and
SK
E&S
Co,
Ltd
in
Korea;
Sempra
LNG
International
LLC
in

Mexico;
CNOOC
Fujian
LNG
Co.
Ltd
in
China;
and
Tohoku
Electric
Power
Company

Inc.
and
Chubu
Electric
Power
Co.,
Inc.
in
Japan.
An
Initial
Phase
Ex-Ship
LNG
Sale
and

Purchase
Agreement
between
Tangguh
and
Kansai
Electric
Power
Company
Inc.,

Japan
is
in
place
in
2013,
while
a
long
term
SPA
with
Kansai
is
under
development

during
the
reporting
period.
BP
continues
to
find
opportunities
to
maximize
the
value
of

Tangguh
LNG
cargoes.
The
mid-term
contracts
for
export
sales
are
to
Kogas,
Tepco

and

Kyushu
Electric,
whereas
the

mid-term
contract
for
domestic
sales
is
to
PT.
PIM.


Additionally,
an
Initial
Phase
Ex-Ship
LNG
Sale
and
Purchase
Agreement
between

Tangguh
and
Kansai
Electric
Power
Company
Inc.,
Japan,
is
in
place
in
2013,
while
a

long
term
SPA
with
Kansai
is
being
developed.

To
further
support
domestic
demand,

in
May
2012
Tangguh
has
signed
a
MoU
with
state
electricity
company
PLN
to
provide

LNG,
and
in
Dec
2013
Tangguh
signed
an
supply
and
off
take
agreement
with
the

same
company
to
provide
electricity
to
Teluk
Bintuni
Regency.

5. INTEGRATED SOCIAL PROGRAM

5.1. The Social Management Plan

The
Tangguh
social
program
continues
as
planned
during
the
reporting
period
of

October
2012
–
April
2013.
The
second
Integrated
Social
Program
(ISP-2)
strategy
is

being
implemented
with
focus
on
the
five
sectors
i.e.
Livelihood,
Education,
Health,

Governance
and
External
Relation
&
Communication.
The
highlights
of
the
programs

are
summarized
as
follows:



5.1.1. Livelihood
Livelihood
covers
many
activities
that
local
people
undertake
to
meet
their
daily
needs

and
to
provide
income.
The
main
objective
of
the
program
is
to
improve
capacity
of

households
in
local
communities
to
create
diversified
and
sustainable
income
sources,

and
the
empowerment
of
indigenous
Papuan.
The
Livelihood
program
is
also
intended

to
reduce
community
dependency
on
jobs
from
Tangguh.

There
are
three
main

activities
including
introduction
of
new
employment
such
as
agriculture
and
micro

April – September 2013 Page|7

business,
opening
of
new
market
opportunities
through
stocking
points,
and
numerous

trainings
and
mentoring
offers
to
support
the
development
of
local
businesses



Fisheries and Agriculture Strengthening
At
the
beginning,
the
fisheries
and
agriculture
program
provided
the
communities

opportunities
to
increase
their
capacity
in
meeting
basic
needs
on
fishery
and

agriculture
products
for
daily
household
consumption.
Throughout
its
development,
the

program
has
grown
into
commercial
activities
through
supply
for
LNG
catering
and
the

local
market.

Several
activities
were
conducted
including
the
development
of
local

products
and
improvement
of
their
quality,
the
promotion
of
village
based
agriculture

and/or
fisheries
products
supported
by
adequate
production
equipment
and
materials,

and
a
comprehensive
training
on
agriculture
and
fishery
product
processing.
These

programs
are
organized
by
community
facilitators
who
work
directly
with
the

community
in
the
villages.

Micro-enterprises and Micro-finance

The
continuing
programs
provided
the
communities
with
wider
economic
opportunities

to
increase
the
incomes
of
both
individuals
and
households
through
support
for

capacity
building
and
access
to
financial
support
and
new
markets.
The
activities

became
more
focused
on
agricultural
and
fishery
programs
including
support
for
the

development
of
new
micro
economical
business
models
e.g.
product
processing

supported
through
local
financial
cooperation.
To
ensure
these
programs
are
delivered

as
planned,
Tangguh
LNG
has
established
a
contract
with
Bina
Swadaya
to
help

farmers;
fishermen;
local
businesses
develop
capacity;
assets;
and,
markets.



Bird’s Head Business Empowerment Program
In
the
Papua
“Bird’s
Head”
area
(,
business
empowerment
program
continued
the
two

objectives
of
mentoring
local
business
people
in
Sorong,
Manokwari,
Fakfak
and

Bintuni,
as
well
as
supporting
Regional
Chamber
of
Commerce
(KADINDA)
and
Forum

of
Oil
and
Gas
Partners
(FPMPM)
Papua
Barat
on
organization
management.
The

scope
of
technical
assistance
delivered
under
BHBEP
includes
business
plan
and

management,
financial
report
development,
managing
the
contract
and
business

licenses
including
safety
and
business
reports.

Workforce Management
During
the
operational
phase,
the
Tangguh
workforce
management
continued
to

maintain
manpower
commitments
to
their
targeted
Papuans.
The
recruitment
process

still
follows
the
previous
procedures
established
during
the
construction
phase.

Employee
recruitment
from
the
DAVs
through
the
Tangguh
Workforce
Management

(WFM)
is
based
on
contractor
requests.
The
WFM
sends
a
letter
to
the
heads
of

villages
to
obtain
recommendations
regarding
the
names
of
community
members
who

are
selected
for
further
health
screening
and
administration
processing.
Applicants

from
outside
the
DAV
recruitment
process
apply
through
respective
contractors

companies;
they
are
then
acknowledged
administratively
by
Manpower
Agency
of

Teluk
Bintuni,
Sorong,
Fakfak
or
Manokwari.

April – September 2013 Page|8

5.1.2. Education

Basic Education & Vocational Program

This
program
aims
to
improve
the
basic
quality
of
education
by
assisting
the
local
Teluk

Bintuni
administration
to
manage
the
education
sector
as
well
as
increase
the

participation
and
teaching-learning
process
of
the
students
and
educational
providers.

A
partnership
was
established
between
Tangguh
LNG
and
the
British
Council
to

provide
technical
assistance
for
the
Education
Agency
of
the
Teluk
Bintuni
Regency

since
2006.
Activities
continued
in
2013.





A
partnership
was
also
developed
with
UNIPA
to
improve
students’
University

preparation
through
a
matriculation
program
for
new
students.




School Model Development.
A
partnership
was
also
formed
with
the
Sampoerna
Foundation
to
accelerate

improvements
to
the
quality
of
the
schools
in
Tanah
Merah
to
meet
the
national

standards.
The
schools
in
Tanah
Merah
are
expected
to
be
a
model
for
other
schools
in

Teluk
Bintuni
which
implement
high
standard
curriculum
and
complete
infrastructure

for
learning.

5.1.3. Health
The
Health
program
objective
is
to
support
local
government
and
local
community
to

improve
health
quality
and
accessibility
of
health
services.

Since
2011,
Mediatama

Ciptacitra
(MCC)
was
awarded
a
3-year
contract
to
provide
community
health
programs

and
technical
assistance
for
the
local
government
of
Bintuni
to
improve
its
health

services,
especially
in
the
DAV
areas.

The
programs
focus
on
7
areas
such
as
mother

and
child
health
program,
sanitation
and
clean
water
program,
malaria
control,
diarrhea,

tuberculosis
(TB),

HIV/
AIDS
preventions,
capacity
building
and
technical
assistance
for

health
providers.

Mother and Child Health (MCH) Program

MCH
programs
provide
support
to
the
local
clinic
health
center
(PUSKESMAS)
in
DAVs

to
cover
the
following
activities:
(i)
Nutrition
posts,
which
encourage
families
to
deal

with
their
children’s
nutritional
problems.
These
integrated
health
posts
(Posyandu)
are

used
to
identify
malnourished
children
and
catch-up
immunization
program
for
children

under
five.
(ii)
The
Pregnancy
Post
involves
village
midwives
who
perform
antenatal

examinations,
and
provide
both
blood/iron
supplement
tablets
and
education
to

pregnant
mothers.
Midwives
are
also
kept
on
call
to
help
with
maternal
emergency

cases.



Sanitation and Clean Water Program
One
of
the
strategies
to
promote
and
sustain
the
effectiveness
of
sanitation
and
clean

water
programs
has
been
the
establishment
of
the
Community-Led
Total
Sanitation

April – September 2013 Page|9

(CLTS)
program,
which
is,
as
the
title
suggests,
spearheaded
by
the
community.
This

concept
aims
to
facilitate
the
community
understanding
of
the
sanitary
problems
and

how
to
fix
them
by
using
these
principles:
no
subsidies,
no
lecturing,
the
community

as
the
program
leader,
and
total
participation
of
the
community.
This
program
starts

with
analyzing
and
planning,
which
then
leads
to
executing
and
evaluating
activities,
as

well
as
maintenaning
its
results.
.




The
CLTS
method
also
emphasizes
the
importance
of
improving
awareness
of

behavioral
changes
to
promote
sanitation,
especially
in
terms
of
developing
the
habits

of
using
clean
restrooms.



Malaria Control
This
program
supports
the
Bintuni
administration
and
village
communities
to
control

malaria.
A
survey
was
conducted
to
determine
the
malaria
prevalence
rates
in
each

DAV
during
the
rainy
and
dry
seasons;
this
survey
involved
the
Village
Malaria
Workers

(JMK).
The
malaria
control
approach
was
also
conducted
by
JMK
through
social

marketing;
the
campaigns
in
many
areas
were
also
supported
by
posters
that
were
put

up
in
various
places
in
the
villages
as
well
as
information
disseminated
through
a
film

on
malaria
and
the
role
of
JMK.
In
the
malaria
program,
the
field
facilitator
also
support

and
provide
stock
of
malaria
drugs
in
community
health
services
in
order
to
increase

community
access
to
malaria
treatment.
This
program
aims
to
reduce
the
risk
of

community
using
illegal
or
inappropriate
drugs
that
can
cause
virus
resistance
to
the

drugs
and
impede
the
treatment
process.









Diarrhea Prevention
This
program
supports
the
Bintuni
administration
to
control
diarrhea,
which
has

become
a
seasonal
epidemic
in
the
DAVs.
The
awareness
campaign
has
continued

through
information
sessions
and
promotions
involving
Posyandu
(Integrated
Health

Post)
cadres,
News
from
the
Bay
(Kadate)
bulletins,
posters
and
radio
broadcasts.

Prevention
efforts
have
also
included
providing
Oralit
at
the
houses
of
the
Posyandu

cadres
and
village
drugstores
(KOT3).




HIV/ AIDS Prevention
To
anticipate
the
spreading
of
STDs,
including
HIV/AIDS,
throughout
the
area
and

among
the
Tangguh
LNG’s
workers,
Tangguh
Community
Health
has
developed

programs
to
improve
the
awareness
of
the
risks
of
such
diseases
through

communication,
information
and
training,
as
well
as
the
promotion
and
distribution
of

condoms
to
workers
within
the
LNG
site,
Babo
Base
Camp
and
the
DAVs.
Tangguh

Community
Health
has
also
partnered
up
with
the
Regional
HIV/AIDS
Prevention

Committee
(KPAD)
in
Fakfak,
Manokwari
and
Bintuni
regencies.
HIV
and
AIDS

awareness
was
also
conducted
to
the
high
risk
population
at
DAVs
area.
The
program

aims
to
ensure
their
participation
in
implementing
safe
behavior
and
to
reduce
their

risk
of
becoming
infected
by
HIV
or
STD.

April – September 2013 P a g e | 10

Capacity Building and Technical Assistance for Health Providers
Capacity
building
and
technical
assistance
was
delivered
to
health
providers
at
the

district
level
and
community
level
who
work
on
the
front
lines
in
providing
quality

health
services.
The
program
is
in
collaboration
with
the
Bintuni
Health
Agency
and
has

the
objective
of
ensuring
the
sustainability
of
health
programs
in
the
future.

At
the

district
level,
the
technical
assistance
includes
the
planning
and
budgeting,
monitoring

and
surveillance
program,
as
well
as
data
management.
At
the
community
level,
the

capacity
building
focuses
on
increasing
the
skills
of
community
health
service
provider

and
on
cadres
in
order
to
implement
the
program
in
its
function
of
helping
case

detection
and
patient
referral.

5.1.4. Governance

The
governance
program
covers
three
sub-program
areas
such
as
Government

capacity
building,
Community
Action
Plans
(CAPs),
Integrated
Community
based

Security
(ICBS)
and
Civil
Society
Strengthening.




Government
The
program
aims
to
strengthen
the
capacity
of
local
government
officials
in
the
Teluk

Bintuni
regency,
districts
and
at
village
level.
The
scope
of
the
program
includes

providing
technical
assistance
for
government
officials
to
understand
and
increase
their

knowledge
in
the
development
process
particularly
in
the
DAVs
areass.
The
capacity

building
is
delivered
for
local
stakeholders
and
agencies,
both
executive
and
legislative

institutions.
The
activities
conducted
consist
of
training
and
mentoring
related
to

strategic
planning,
budgeting,
monitoring
and
evaluation,
accountability
and

transparency,
and
also
policy
development.

The
regency
and
district
(village)
level

governance
program
was
carried
out
in
collaboration
with
the
Center
of
Population
and

Policy
Studies
University
of
Gadjah
Mada
(PSKK-UGM).
Meanhile
the
governance

program
in
the
Bird’s
Head
area
is
implemented
in
collaboration
with
Media
Cipta
Citra

(MCC)
as
a
partner
and
focusing
on
awareness
of
revenue
management
for

government
officials
and
stakeholders.




Community Action Plan (CAP) and Infrastructure development
This
section
describes
the
community
development
activities
conducted
as
per
our

commitment
in
Weriagar,
Mogotira,
Tomu,
Ekam,
Taroi,
Tofoi,
Tanah
Merah,
Saengga,

Onar,
Otoweri
and
Tomage,
which
are
the
Directly
Affected
Villages
(DAVs),
and
also

Irarutu
III
and
Sebyar
Rejosari
as
Non-DAVs.




Community
Participatory
Planning
(PBM)

Community
participatory
planning
(PBM
or
Perencanaan
Bersama
Masyarakat)
is
the

process
to
ensure
that
community
aspirations
have
been
adopted.
CAP
documents

produced
from
the
PBM
process
will
ensure
that
the
communities
can
choose
their

own
development
priorities.
Principally,
“PBM
and
evaluation”
is
conducted
annually
in

the
DAVs.
Recently,
the
PBM
process
integrated
with
the
development
planning

meeting
(Musrenbang)
at
village
level.
In
this
process,
the
planning
not
only
focused

April – September 2013 P a g e | 11

on
providing
CAPs
program,
but
also
integrates
with
all
activities
that
are
proposed
by

the
village
and
considers
the
availability
of
all
resources
including
government,

company
and
community.




Clean
Water
Program
for
the
Community

This
program
aims
at
providing
people
in
the
DAVs
with
access
to
clean
water.
The

availability
of
clean
water
is
a
necessity
that
directly
affects
the
improvement
of

community
health
quality.




Infrastructure
Development

This
program
aims
to
support
the
improvement
of
the
social
and
public
facilities
in
the

DAVs,
which
indirectly
affect
the
quality
of
health,
education
and
local
economic

growth.
The
implementations
of
infrastructure
projects
need
the
participation
of

community
members
in
terms
of
manpower
and
materials.



Capacity
Building

This
program
aims
to
improve
the
communities’
livelihood
skills.
The
training
and

mentoring
include
cooking,
fisheries,
agriculture,
post
harvesting,
management
skills,

etc.



Social
Program

As
a
complementary
activity,
the
social
program
supported
and
enhanced
the

community
participation
in
specific
social
activities
such
as
religious,
education
and

youth
programs.





Integrated Community based Security (ICBS)
The
ICBS
program
aims
to
implement
an
integrated
community-based
security
system

that
delivers
effective,
transparent
security
outcomes
for
the
Tangguh
Project.

The

program
implemented
by
the
Security
unit
fostered
collaboration
with
Gardatama

services
unit
and
local
security
stakeholders.
Several
activities
were
conducted

including
development
of
local
content
and
security
enterprises;
community
policing

program,
promotion
of
understanding
of
law
and
order,
conflict
resolution
plans
and

monitoring,
discussion
and/or
response
to
security
issues
as
they
arise
as
well
as

training
in
human
rights
awareness.

Civil Society Strengthening

The
civil
society
program’s
objective
is
to
increase
and
improve
the
participation
of
civil

society
in
overseeing
the
socio
economic
development
and
Tangguh
operation
by

facilitating
civil
society
forums
and
trainings.
The
program
also
provided
support
for
the

establishment
of
an
NGO
forum
to
accommodate
the
communication
process,

including
updates
on
Tangguh
LNG
and
information
sharing.
Recently,
an
MOU

renewal
with
LP3BH,
a
local
NGOs
based
in
Manokwari
for
humanitarian
and
human

right
issues,
was
established.
The
collaboration
with
LP3BH
focuses
on
civil
society

strengthening,
supporting
implementation
of
ICBS
in
the
villages
as
well
as
awareness

building
programs
on
transparency
and
accountability
for
local
government
and

communities.
LP3BH
also
actively
promotes
anti
domestic
violence
to
the
community.

April – September 2013 P a g e | 12

5.1.5. Community Relations
Tangguh
LNG
recognizes
that
the
success
of
the
operation
depends
on
the

relationships
with
various
stakeholders,
including
the
communities,
government
and

non-government
organizations.


The
Community
Relations
(Comrel)
Team
manages
the
communities’
aspirations
and

interests
in
the
DAVs.

Grievance
procedures
are
implemented
in
the
DAVs
to
give

communities
a
chance
to
channel
their
complaints
or
comments
relating
to
the
project

and
the
social
programs.
The
team
also
conducts
regular
visits
to
villages
to
listen
to

community
issues
as
well
as
to
provide
update
on
Tangguh
activities.
Community

relations
program
provides
some
media
communication
such
as
the
Kabar
dari
Teluk

(KADATE)
tabloid,
that
are
used
for
information
sharing
among
the
communities.
As

part
of
the
company’s
commitment
to
provide
continued
support
in
maintaining
local

values
and
cultures,
the
community
relations
team
facilitates
cemetery
visits
to
the

Tangguh
area
for
the
resettled
communities
from
TMB,
Onar
and
Saengga.
Tangguh

social
team
also
actively
supports
cultural
awareness
programs
to
Tangguh
employees

on
site
and
other
events.

April – September 2013 P a g e | 13

5.2. Social Monitoring Plan
During
this
reporting
period
of
April
-
September
2013,
the
Tangguh
social
programs

implemented
several
activities
in
many
areas.
Some
outputs
of
social
programs
have

been
delivered
as
mentioned
bellow:





5.2.1. Livelihood


The
agriculture
and
fisheries
program
are
still
focused
on
improving
the
capability
of

the
community
to
undertake
production
to
meet
household
needs,
local
commercial

activities
and
supply
to
Tangguh
catering.
Several
outputs
were
achieved
during
this

reporting
period
including:

• Distribution
of
more
than
1,000
fruit
trees
including
mango,
rambutan,

klengkeng,
sukun
and
duku,
to
communities
in
Irarutu
III
Babo,
Taroy
and
Onar.




• Conducted
farmer-workshop
(Temu
Tani)
in
Tanah
Merah
Baru,
involving
56

farmers
from
11
villages
in
the
DAV
area.
This
is
an
effort
to
increase
farmer

capacity
as
well
their
knowledge
through
sharing
of
best
practices.


• Facilitated
the
farmer
group
meeting
in
Manimeri
District,
150
people
attended.

This
was
an
important
meeting
initiated
by
the
local
government
in
order
to

increase
community
awareness
on
the
agriculture
program.

• Facilitate
local
market
developments
to
Manokwari
and
Sorong
for
fishery

products
from
the
DAVs.


































Figure
1.
Documentation
of
the
agriculture
program
in
Tanah
Merah
Baru
Village.
The

program
supplies
fresh
fruits
and
vegetables
to
Tangguh
Catering


Micro-Enterprises and Micro-Finance
Micro
enterprise
activities
continued
to
create
opportunity
for
communities
in
the

DAVs
to
access
a
variety
of
livelihood
and
small
business
opportunities
to
increase

household
income.
Several
training
and
mentoring
sessions
were
conducted
during

this
reporting
period:

April – September 2013 P a g e | 14

 • Continued
assistance
on
technical
and
management
aspect
to
the
machinery

workshop
project
in
Taroy
and
Saengga
including
providing
spare
parts
and

equipment
for
the
workshop
and
recruitment
of
one
technical
mentor.
Recently

the
workshops
have
opened
and
are
receiving
orders
from
the
community.




• Provided
two
freezers
to
support
the
stocking
point
program
in
Arguni.

• Continued
mentoring
session
on
technical
and
management
to
seven
stocking

points
in
the
DAVs
to
maintain
product
supplies
to
Tangguh
catering.

• Conducted
training
on
household
economic
management
in
Otoweri,
Tomage,

Weriagar,
Mogotira,
Tomu,
Ekam,
Taroi
and
Babo;
As
many
as
154
people

participated.

• Facilitated
health
certification
from
Health
Regency
Office
for
home
industry

products
from
the
DAVs
such
as
salted
fish
and
sago
crackers.

• Conducted
savings
campaign
for
the
community
in
Otoweri,
Tomage,

Weriagar,
Ekam,
and
Tomu;
106
people
participated.


• Conducted
savings
campaign
for
teachers
in
the
DAV
schools
including
in

Tomu,
Otoweri
and
Tomage;
11
teachers
participated.

• Provided
a
grant

to
support
the
operations
of
a
stocking
point
in
Weriagar,

totaling
IDR
10
million.

• Facilitated
market
network
for
home
industries
products
from
the
DAVs

through
participation
to
the
exhibition
programs
in
Jakarta,
Sorong,
and
Bogor

in
collaboration
with
SMESCO
institute.


• Facilitated
the
opening
of
Babo
outlet
by
the
Head
of
the
Teluk
Bintuni

Cooperative
and
Trade
Office.


• Facilitated
contract
amendment
between
cooperatives
in
the
DAVs
and

Indocater
to
maintain
supply
activity
of
fisheries
and
agriculture
products.


• Supported
cooperative
workshop
in
Bintuni
Township;
as
many
as
84
people

participated
including
cooperative
institutions
in
the
DAV
area.



• Continued
mentoring
session
in
order
to
keep
the
quality
and
product
supply

from
the
seven
existing
stocking
points
in
the
DAVs.The
supply
of
products

from
the
DAVs
including
shrimp,
fish,
fruit
and
vegetables
to
Tangguh
catering

was
on
average
26
tons
per
month.



Bird’s Head Business Empowerment Program (BHBEP)
The
BHBEP
continued
the
mentoring
session
for
mentees
in
the
Bird’s
Head
area
and

capacity
building
of
the
Regional
Chamber
of
Commerce
(Kadinda)
and
Forum
of
Oil

and
Gas
Partners
Papua
Barat
(“Forum”).
During
this
reporting
period
several
activities

were
delivered,
as
follows:

• Continued
one-on-one
business
consultancy
sessions
to
Kadinda,
Forum
and

other
business
associations
in
Papua
Barat.

• Continued
consultancy
for
nine
business
local
firms
in
management
and

invoicing.

• Continued
mentoring
session
on
business
proposal
development
and
tax
report

to
19
local
firms
across
the
Bird’s
Head
region.

• During
this
reporting
period,
10
local
firms
were
awarded
contracts
from
the

local
government
and
private
businesses
for
various
projects.

April – September 2013 P a g e | 15

Workforce Management

The
number
of
workers
continued
to
increase;
as
of
August
2013
a
total
2.645
people

work
in
LNG
Tangguh
Operation.
As
many
as
1413
people
or
53.4%
of
workers
are

Papuan.
The
workforce
distribution
is
summarized
below:




Table
1
Number
of
Operation
Workforce
at
Tangguh
LNG
Site



Skilled Level DAV Bird's Head Rest of Papua National Expatriate Total
Unskilled
48 0 0 0 0 48
Low
Skilled
332 151 4 0 0 487
Semi-Skilled
178 254 34 46 0 512
Skilled
27 224 89 884 14 1238
Managerial/Supervisor
6 48 18 283 5 360
Total 591 677 145 1213 19 2645
Percentage
22% 26% 5% 46% 1% 100%





Source: Tangguh WFM Team, September 2013


The
trend
of
workforce
composition
at
Tangguh
operation
in
this
period
is
similar
tothe
previous

period.
From
2.645
employees,
23%
of
workers
came
from
the
DAVs,with
most
of
them
in
the

low
skilled
level.
However,
compared
to
the
last
reporting
period
the
number
of
Papuan

employees
in
the
managerial/supervisor
level
has
increased
from
68
to
72.







5.2.2. Education


The
education
program
continued
on
capacity
building
of
the
Teluk
Bintuni
Education

Office
and
improvement
on
quality
of
school
and
learning
process
in
the
DAVs
as
well

as
increasing
community
participation
in
basic
education
programs.

Furthermore,
in
an

effort
to
improve
the
quality
of
the
school
and
learning
process
in
Tanah
Merah,
a

special
program
was
created
including
school
model
development,
provision
of

infrastructure
and
part-time
teachers.
The
program
is
facilitated
by
Sampoerna

Foundation
in
collaboration
with
the
Teluk
Bintuni
Administration.





During
this
period
report,
the
education
program
delivered
some
outputs
as
follows:

• Mentoring
for
teacher
working
group
in
Bintuni
on
learning
evaluation;
84

teachers
participated


• Monitoring
the
implementation
of
2013
national
examinations
for
senior
and

junior
high
school
level
across
in
Teluk
Bintuni,
in
collaboration
with
the
Teluk

Bintuni
Education
Office,
UNIPA
and
STIH
Manokwari.
As
many
as
395

students
in
senior
high;
739
students
in
junior
high
and
1080
students
in

elementary
levels
across
Teluk
Bintuni
participated
in
the
2013
national

examination.

• Some
27
students
from
Bintuni,
of
which
six
came
from
the
DAVs,
were

selected
and
participated
in
the
National
Science
Olympiad
in
Bandung
in
June

2013.
They
represented
the
Papua
provinces
in
the
event.
This
is
a
good

April – September 2013 P a g e | 16

 achievement
and
recognizes
the
continued
improvement
of
education
in

Bintuni.


• Conducted
training
of
trainers
on
learning
evaluation
in
Teluk
Bintuni;
as
many

as
20
people
including
school
supervisors,
education
regency
staff
and
local

facilitator
participated.

• Conducted
basic
pedagogy
training
to
increase
teachers’
capability
on
learning

process
development
involving
35
people,
including
head
principals
and
school

supervisors
from
across
Bintuni
Bay.

• Collaboration
with
the
Education
Regency
Office
on
a
workshop
on
education

program
policy
review
in
Bintuni.
As
many
as
203
people
were
involved
from

local
universities,
local
parliament
members,
and
education
foundations.


• Continued
support
for
the
Education
Regency
Office
including

data

management
and
technical
issues
in
education
program
development.

• Continued
mentoring
session
to
strengthen
the
capacity
of
three
education

foundations
in
Bintuni
including
YPKK,
Muhammadiyah
and
YPK
on
school

development
program,
data
management,
finance
administration
and

report,

implementation
of
school
self-evaluation
and
media
development.


• Conducted
awareness
on
education
program
in
Tomage
and
Babo,
as
many
as

93
people
participated
including
teachers,
district
and
village
officials
and

community
members.

(38
from
Tomage;
55
from
Babo).

• Completed
the
renovation
of
3
new
classes
building
of
the
YPK
elementary

school
in
Onar.
The
opening
ceremony
occurred
in
13
September
2013.

Figure
2.
Documentation
of
renovation
project
and
opening
ceremonial
of
3
new

classes
building
in
Onar



• Conducted
training
on
learning
and
evaluation
skills
for
science
teachers
in

elementary
and
high
schools
across
Teluk
Bintuni,
76
people
participated.


Comprehensive
mentoring
was
delivered
after
the
training.

• Provided
scholarships
to
14
students
to
attend
SMK
MIGAS
program
in
Cepu

East
Java;
13
students
to
attend
UNIPA
in
Manokwari
and
3
students
to
attend

SMAN
3
in
Jayapura.
All
students
were
mobilized
and
joined
the
program..



• Facilitated
demobilization
process
of
four
students
who
completed
the

scholarship
program
from
SMK
Migas
in
Cepu
to
Manokwari.

• Facilitated
17
students
who
completed
the
SMK
MIGAS
program
to
join
the

matriculation
at
UNIPA.

April – September 2013 P a g e | 17

 • Capacity
strengthening
for
school
committees
and
school
teachers
in
Otoweri,

Onar,
Babo
and
Aranday
to
increase
community
participation
to
education

program
in
the
villages.
As
many
as
67
teachers
and
school
head
principals

participated.

• Provided
incentives
for
10
selected
part-time
teachers
in
the
DAVs.

• Selected
and
recruited
one
additional
part-time
teacher
on
Bahasa
Indonesia

subject
in
Aranday.



5.2.3. Community Health



Community
health
program
aims
to
increase
community
access
to
health
services
as

well
as
to
strengthen
health
services
in
the
DAV
area.

This
program
is
implemented

by
MediaCiptaCitra
(MCC)
and
Yayasan
Santo
Agustinus
in
collaboration
with
the

Bintuni
Health
Office.
During
this
reporting
period,
the
program
delivered
the
following

outputs:


• Collaborated
with
community
health
services
conducting
malaria
surveillance
in

the
DAVs
and
non-DAV
areas.
During
this
reporting
period,
more
than
2,700

blood
smears
were
collected
where
as
many
as
300
were
malaria-positive

(12%).


• Conducted
refresher
training
on
malaria
surveillance
for
health
providers
in

Beimes,
Manimeri,
SP5,
Sidomakmur,
Atibo,
Yensei
and
Tanah
Merah.

• Conducted
malaria
education
to
communities
in
TMB,
Saengga,
and
Beismis

District;
171
people
participated.

• Conducted
awareness
session
on
malaria
treatment
to
all
pharmacists
in
Teluk

Bintuni
Township.

Figure
3
. Malaria
training
for
health
providers
and
malaria
survey
in
one
DAVs.


• Facilitated
training
on
using
microscopes
to
read
data
for
3
laboratory
staff
from

Teluk
Bintuni
Regency
at
the
Health
Research
Institute
in
Jakarta.


• Conducted
mass
malaria
diagnostics
for
the
community
in
TMB;
360
people

participated.

• Conducted
awareness
session
on
malaria
treatment
procedure
to
all

pharmacists
in
Teluk
Bintuni
Township.

April – September 2013 P a g e | 18

 • Conducted
refresher
training
on
malaria
prevention
to
health
providers
in

Dataran
Beismis
District
including
the
appointment
of
one
village
malaria
cadre

(JMK)
in
Suhi
Village.

• Strengthened
the
malaria
prevention
program
in
Kaitaro
District
including

implementing
a
baseline
survey,
appointing
JMK
and
providing
training
on

malaria
program
for
health
providers.
As
many
as
454
blood
smears
were

collected
during
baseline
survey
activity.


• Facilitated
the
implementation
of
nutritional
and
maternity
classes
during

Posyandu
(community
health
clinic)
program
in
all
DAVs;
more
than
700

children
under
5
years
old
were
weighed
and
scaled
during
the
program.


• Conducted
diarrhea
surveillance
in
all
DAVs;
168
diarrhea
cases
were
reported

during
April
–
October
2013.
Two
fatalities
due
to
severe
diarrhea
were

recorded
in
Tofoi
and
Babo.


• Conducted
regular
awareness
program
on
personal
hygiene,
diarrhea

prevention,
clean
water
and
health
sanitation
to
communities
in
all
DAVs,
more

than
430
people
on
average
participated
every
month.


• HIV
campaigns
were
conducted
in
Bintuni,
Babo
and
Tofoi;
more
than
400

people
attended
including
high-risk
group
populations.
After
voluntary

counseling,
as
many
68
people
were
referred
for
HIV
testing
and
early

treatment
at
VCT
&
CST
clinics
in
Bintuni.




• Facilitated
STD
(sexual
transmitted
diseases)
surveillance
in
the
appointed

clinics,
as
many
13
people
voluntarily
participated.


• Collaborated
with
CHAI
institution
for
“on
the
job”
training
for
laboratory
and

nursing
staff
on
STD
prevention
in
Teluk
Bintuni
and
Manimeri.



• Conducted
TB
awareness
program
in
the
village
with
high
prevalence
of
TB

cases
including
Babo,Tofoi
and
Tomu;
more
than
300
people
were
involved

every
month.
The
program
also
identified
12
people
with
positive
TB
and
they

were
referred
to
a
health
service
for
early
diagnostic
and
treatment.



5.2.4. Governance


There
are
several
activities
under
the
governance
program
including
the
Community

Action
Plan
(CAP),,
Government
and
civil
society
empowering,
and
Integrated

Community-Based
Security
(ICBS).
These
programs
have
laid
a
strong
foundation
for

the
other
programs.
During
this
reporting
period
some
outputs
delivered
from
the

governance
program
are
described
below:



CAPs and Infrastructure Development
• Completed
community
participatory
planning
meeting
in
Taroy,
28
people

participated.

• Completed
community
action
projects
including:


- Provided
education
aid
to
273
students
in
Ekam,
Weriagar,
Mogotira,
TMB,

Saengga,
Otoweri,
Onar,
Tomage,
and
Tomu;

- Provided
400
fish
and
shrimp
nets
and
14
fishery
machines
to
fisherman
in

Ekam,
Onar
Lama,
Tomage,
Tomu,
and

Weriagar.

April – September 2013 P a g e | 19

 - Provided
additional
meals
for
children
and
pregnant
women
during
Posyandu

program
in
Weriagar
and
Tomu.

- Completed
4
religious
place
renovation
including
mosques
and
churches
in

Ekam,
Saengga,
Tomage
and
Tomu.

- Completed
renovation
of
two
houses
in
Ekam
and
Taroy.

- Provided
incentives
for
5
village
health
cadres
and
3
part-time
teachers
in

Otoweri
and
Weriagar

- Completed
public
infrastructure
development
including
40
electricity
towers
and

a
200-metre
village
walk
way
in
Otoweri

- Provided
one
package
of
school
equipment
in
Otoweri





















Figure
4 Documentations
of
Community
Action
Projects
in
the
DAVs
Villages



Community Relation Program

Community
relation
program
focuses
on
maintaining
communication
and
relation
with

the
stakeholders
at
district
and
village
levels,
particularly
to
update
the
operation
of

Tangguh
LNG.
Several
activities
conducted
during
this
reporting
period
include:


• Conducted
awareness
on
grievance
mechanism
to
the
community
in
the
DAVs

including
in
Sebyar
Rejosari,
Saengga,
Babo,
Irarutu
III,
Tofoi
,
Tomoage
and

Otoweri;
As
many
as
243
people
participated.


• Continued
to
manage
community
grievances.
During
January-September,
as

many
as
24
community
concerns
were
raised
using
the
grievance
form.
All

grievances
were
responded
in
a
timely
manner.




• Updated
Tangguh
LNG
activities
to
district
and
village
officials.


• Supported
social
activities
in
the
villages
surrounding
the
plant
including
the

commemoration
of
National
Education
Day,
2013
Ramadan,
and
Eid
Day

celebrations.


• Conducted
cultural
awareness
to
Tangguh
employees,
20
people
participated.

• Supported
the
renovation
of
the
port
office
and
soccer
field
in
Babo.

• Facilitated
a
meeting
between
community
in
Weriagar
with
BP
management

and
SKK
Migas,
to
update
and
consult
on
the
Tangguh
Expansion
Project.

• Supported
the
replanting
of
375
fruit
trees
in
Babo.


• Facilitated
community
cemetery
visit
to
Tangguh
LNG
area
during
2013

Ramadan,
Eid
Day
from
three
resettled
areas
of
TMB,
Onar
Baru
and
Onar

Lama.

April – September 2013 P a g e | 20

 Figure
5 Documentation
of
community
cemetery
visit
in
Tangguh
LNG
area
during

2013
Easter
day

Government Capacity Building & Civil Society Organization Strengthening

The
continuation
of
capacity
building,
particularly
for
the
local
government
official
at

province,
regency,
district
and
village
levels,
are
needed
to
ensure
the
principles
of

good
governance
are
implemented.

Several
outputs
for
the
government
capacity

building
program
were
delivered
during
this
reporting
period
including:


• Continued
mentoring
session
on
strategic
planning
and
annual
budgeting
for

village
and
district
officials
in
TMB,
Otoweri,
Tomage,
Saengga,
Weriagar,

Mogotira
and
Babo;
As
many
as
66
villagers
and
district
officials
participated.



• Continued
mentoring
session
on
governance
administration
management
and

the
implementation
of
the
population
administration
system
in
Babo,
Tomu,

Onar,
Taroy,
Weriagar,
Tofoi
and
Otoweri.
As
many
as
131
government
and

village
officials
participated.

• Facilitated
the
implementation
of
Musrenbang
in
TMB,
33
people
participated.



• Facilitated
and
updated
the
village
monograph
in
Weriagar
and
Mogotira

involving
21
people.


• Continued
mentoring
session
on
2014
planning
development
for
health,
marine

and
fishery,
planning
board,
education
and
agriculture
program
at
regency
level.



ICBS
program
is
implemented
to
support
and
secure
the
Tangguh
LNG
plant
with
wide

community
participation
approach.
In
March
2013,
an
MOU
on
ICBS
implementation

was
established
collaboration
with
LP3BH,
a
local
NGO
focusing
on
legal
advice
and

advocacy
as
well
security
issues
in
Papua.
Its
participation
has
provided
significant

outputs
including:





















Figure
6
Socialisation
for
local
communities
and
military

April – September 2013 P a g e | 21

 • Conducted
awareness
sessions
on
exclusion
zone
to
communities
in
Babo,

Tofoi,
Wimro
and
Bintuni
Township.
As
many
as
362
people
participated,

including
people
from
the
local
military,
police
and
NGOs.


• Conducted
audience
with
key
stakeholders
to
getting
more
inputs
on
the

implementation
of
ICBS
in
the
surroundings
of
Teluk
Bintuni.

• Facilitated
in-house
training
on
the
implementation
of
voluntary
principles
on

security
and
human
rights
involving
30
people
from
local
military
and
police
in

Bintuni.




A
collaboration
program
for
CSO
strengthening
with
UNIPA
and
LP3BH
program

delivered
significant
outputs
including:

• Conducted
awareness
on
domestic
violence
policy
in
Teluk
Bintuni
Township,

as
many
as
61
people
participated;

• Conducted
awareness
on
corruption
and
public
information
regulation

in
Teluk

Bintuni
Township,
Teluk
Wondama
and
Kaimana
Regency;
as
many
as
90

people
participated
including
local
government
official,
religious
and
community

team
leader;

• Facilitated
the
establishment
of
an
MoU
between
UNIPA
and
Tangguh
for

capacity
building
and
CSO
program.
The
MoU
will
be
applied
for
the
next
three

year.


• Continued
mentoring
session
on
the
local
policy
development
of
oil
and
gas

revenue
sharing
in
Manokwari,
in
collaboration
with
UNIPA,
UNCEN
and
PSKK

UGM

• Facilitated
cultural
awareness
program
to
the
community
in
the
DAVs.
Four

youth
dancer
groups
from
the
DAVs
performed
traditional
dances
during

Indonesia
Independence
Day
commemoration
in
Babo,
Tofoi
and
Taroy.






























Figure
7
Documentation
of
Cultural
Program
during
Independence
Day
and
Opening

Ceremonial
of
Onar
School

April – September 2013 P a g e | 22

6. EXTERNAL PANEL ANNUAL REVIEW AND NON-COMPLIANCE STATUS
UPDATE
The
External
Panel
visit
in
early
2013
identified
one
repeated
social
non-compliance

issue
on
the
community
grievance
process,
i.e.
some
grievances
were
not
responded

in
the
20-day
limit
as
required
by
AMDAL.
Corrective
actions
have
been
conducted.

Below
is
the
status
update:

Level-1 Non Compliance Status update
Identified
Not
responding
in
20
days
in
Community
grievance
process
is
managed
by
the
CRP

75%
(3
out
of
4)
cases,

team.


The
Community
Grievance
Procedure


has
been

improved
and
implemented,
including
the
mechanism

Not
logging
grievances

for
a
quick
first
response,
clearer
role
and
structure
of

accurately


grievance
response
as
well
simplification
of
grievance

Not
disclosing
Community

registration
and
documentation
processes.



Grievance
procedure



adequately
so
that
it
is

The
community
grievance
mechanism
procedure
was

understood
and
used
by

simplified
and
communicated
to
create
awareness
for

villagers

other
functions
relevant
to
grievance
response
process.




Regular
monitoring
on
community
grievance
issues

during
the
weekly
meeting
between
CRP
and
the

Jakarta
office
is
still
implemented
including
discussion

of
any
the
outstanding
issues
on
grievance
response.




Moreover,
community
grievance
procedure
socialization

continued
to
be
conducted
in
the
DAVs
to
increase

community
understanding
in
the
process
of
grievance

submission.

During
this
reporting
period,
awareness
on

the
grievance
mechanism
were
conducted
in

Sebyar

Rejosari,
Saengga,
Babo,
Irarutu
III,
Tofoi
,
Tomoage
and

Otoweri;
attended
by
243
people.




Recent
monitoring
showed
that
during
April
–
October

2013,
there
were
twenty
four
community
concerns

submitted
by
the
community
using
grievance
form
and

were
registered
in
the
grievance
database.

However,

out
of
24
concerns,
there
were
only
two
concerns
that

are
considered
as
real
grievances.
However,
all

community
concerns
have
been
responded
to
within

the
time
limit.

April – September 2013 P a g e | 23

7. EVALUATION RESULT


The
implementation
of
the
social
program
in
Tangguh
LNG
is
continuing
as
planned
to

meet
the
AMDAL
commitments.
The
intentions
of
the
current
social
programs
are
not

merely
to
deliver
services
to
beneficiaries,
but
ultimately
to
develop
ownership
and

involvement
by
the
locals
in
development
of
initiatives.
The
program
encourages
local

government
to
take
a
more
active
role
in
the
social
economic
development
of
the

region.
The
mechanism
is
implemented
through
enhancing
the
stakeholder
knowledge

of
role
and
function,
and
involving
them
to
actively
participate
in
planning
and

implementation
of
the
program.
The
continued
capacity
building
and
mentoring
is
done

in
collaboration
with
the
program
implementing
partners.





The
British
Council
and
Poetra
Sampoerna
Foundation,
as
the
key
partners,
were

providing
technical
assistance
for
officials
of
the
Teluk
Bintuni
Regency
in
education

programs.
Meanwhile,
the
MediaCiptraCitra
(MCC)
and
YSA
are
the
key
partners
to

assist
and
enhance
the
capacity
of
the
Regency
Health
Office
in
improving
health

status
at
community
level.
PSKK-UGM
has
provided
training
and
mentoring
for

government
officials
at
the
village,
district
and
regency
level.
These
are
efforts
to

improve
government
awareness
in
accordance
with
good
governance
principal

implementation,
as
well
delivery
public
basic
service
for
the
local.





The
Livelihood
program
continued
to
make
good
progress
in
the
areas
of
agriculture,

fisheries,
micro-enterprise
and
micro-finance
development.
Several
activities
have

been
implemented
during
this
reporting
period
in
DAVs
and
Non
DAVs,
mainly

targeting
women
and
indigenous
people.
The
agriculture
development
program
was

focusing
on
increasing
household
consumption
and
commercial
capacity.
The
recent

fishery
program
continued
through
the
monitoring
of
fishermen’s
activities,
provision

of
mentors
and
equipment,
as
well
as
assessing
opportunities
for
local
market

expansion
for
fishery
products
from
the
community.
The
program
also
provided

scholarships
for
students
from
the
DAVs
interested
in
fishery
program
development.
In

collaboration
with
marine
school
in
Sorong
15
selected
students
from
the
DAVs
were

recruited
every
year.
They
will
study
for
the
next
three
years
with
full
scholarship
from

Tangguh
project.




There
are
two
strategies
in
the
agricultural
development
program;
the
first
is
to

implement
productive
agriculture
with
the
aim
to
generate
a
profit.
This
can
be

achieved
by
planting
crops
that
have
an
economic
value,
such
as
fruit
and
vegetables

that
are
tradable
commodities.

Currently
the
program
is
focused
on
the
Tofoi,
Tanah

Merah,
Saengga
and
Babo
villages
with
the
major
market
being
Tangguh
LNG

Catering.
The
second
strategy
is
to
develop
sustainable
subsistence
agriculture
with

the
aim
of
providing
better
nutrition
to
households
through
the
plantation
of
vegetables

and
herbs.
This
program
is
focused
on
the
villages
of
Weriagar,
Mogotira,
Tomu,

Ekam,
Taroy,
Otoweri
and
Tomage
which
have
low
levels
of
soil
fertility.
Given
that

this
is
a
process
of
cultural
change
for
the
community
in
DAVs,
the
program
is

implemented
in
several
stages
including
training,
group
mentoring
and
one-on-one

April – September 2013 P a g e | 24

assistance.


The
expected
change
should
be
more
sustainable
and
eventually

permanent.
To
help
the
community
in
implementation
of
the
program,
the
project
also

provided
technical
support
including
seed
distribution,
field
development,

maintenance,
storage
and
processing
of
the
agriculture
products.

























Figure
8
Documentation
of
Agriculture
Program
in
DAVs:
Commercial
and
Subsistence

project



Considering
to
the
economic
potential
and
the
future
need,
the
livelihood
program

recently
developed
a
pilot
industrial
agriculture
program
based
on coffee
and

eucalyptus
at
the
village
with
potential,
i.e.

Tomage
and
Onar.
Currently,
the
program

focuses
on
the
assessment
of
land
capacity
as
well
as
the
strengthening
of
farmer

groups
who
will
work
on
the
pilot
project.






The
livelihood
program
continued
to
create
an
opportunity
for
the
community
to

increase
household
income
through
home
based
industry
development
which
uses

local
resources.

Several
products
such
as
shrimp
crackers
&
nugget,
shrimp
ball,
fish

ball,
salted
fish
and
chips
which
have
economic
value
were
produced.
The
products

provide
variety
of
food
for
household
consumption,
as
well
as
for
sale
to
the
visitors.

Furthermore,
as
a
strategy
to
create
a
market
for
community
products,
the
livelihood

program
continued
to
assess
the
opportunity
of
developing
of
new
local
market.
The

outlet
in
Babo
and
kiosk
in
Tofoi
have
been
running
and
providing
benefits
for
the

supplier
from
community
in
DAVs.
Moreover,
there
is
a
plan
to
expand
a
new
outlet
in

Bintuni
Township.
This
project
is
in
collaboration
with
the
local
government
and
will

provide
greater
opportunities
to
market
commercial
products
from
DAVs.
Recent

monitoring
showed
that
the
program
is
still
in
preparation
for
the
management
as
well

as
recruiting
people
who
will
work
to
manage
the
operations
of
the
outlet.
It
should
be

launched
in
the
next
reporting
period.




Technical
assistance
to
the
existing
stocking
points
in
the
DAVs
was
maintained
to

ensure
the
continuity
of
agriculture
and
fishery
supply
to
Tangguh
LNG
catering.

Recently
the
stocking
points
have
shown
professionalism
in
managing
the
community

products.
They
received
technical
support
and
assistance
on
business
and
product

management
from
the
livelihood
implementing
partner.
During
this
reporting
period,

product
supply
from
the
DAVs
to
Tangguh
LNG
catering
increased
compare
the
same

period
in
previous
year.

Total
supply
of
fruits,
vegetables,
fish,
crab
and
shrimp

April – September 2013 P a g e | 25

delivered
to
Tangguh
LNG
Catering
in
January
to
September
was
233
tons.
These

figures
equal
to
5.4
billion
rupiahs
(USD
500
000).



























Figure
9. Vegetable,
Fruit
and
Fish
delivery
from
Stocking
Points
to
Tangguh
LNG

Catering
Source: Tangguh Livelihood Program, September 2013


Moreover,
the
livelihood
program
also
continues
to
create
opportunities
to
increase

community
income
as
an
alternative
to
being
employed
at
Tangguh
LNG.
Several

programs
were
developed
including
machinery
repair
workshop
and
outlet

development
in
Babo
village.
The
program
provided
a
comprehensive
training,

including
technical
and
business
management.
Recent
monitoring
showed
that
the

bicycle
repairing
workshop
has
received
work
from
Tangguh
and
community.
A
work

agreement
between
Tangguh
LNG
maintenance
and
the
workshop
was
established.

Between
February
and
September
2013,
the
workshop
has
received
48
units
of

bicycles
from
Tangguh
LNG
to
be
repaired
with
total
value
of
IDR
94
million.
The

workshop
also
received
repair
orders
from
the
surrounding
community.
























Figure
10
Documentation
of
Bicycle
Workshop
in
Babo



The
machinery
workshop
developed
in
Saengga
and
Taroy
have
started
operations.

However,
technical
support
to
the
workshop
is
still
continuing
to
ensure
standards
are

met.
One
technical
facilitator
was
recruited
to
assist
the
workshop.
The
workshop
is

now
ready
to
receive
orders
from
the
community.




Various
livelihood
activities
delivered
under
Tangguh
LNG
social
program
since
2009

has
resulted
in
a
good
impact
to
the
household
income
in
all
DAVs
areas
for
both

Indigenous
and
non-Indigenous
people.
Based
on
the
2012
livelihood
survey,
there
is
a

April – September 2013 P a g e | 26

significant
increase
of
household
income
in
north
and
south
areas
as
described
in

Figure
37.






































Figure
11
The
average
of
annual
invome
per
household
in
DAVs
(in
rupiahs)

Source: Livelihood Survey in Teluk Bintuni, 2012- PSKK UGM


An
effort
to
increase
community
incomes,
particularly
for
the
indigenous
people,
will

be
pursued
in
the
long
term.
Especially
after
the
implementation
of
the
electrification

program
expected
in
the
next
period,
a
potential
livelihood
program
enhancement
is

being
identified
particularly
microenterprise
in
agriculture
and
fishery
based.







The
presence
of
the
Tangguh
LNG
Plant
in
the

Bintuni
region
has
provided
the
opportunity
for

communities
to
be
employed
in
the
LNG

industry.
Data
in
September
2013
showed
that

2,645
people
were
employed
at
Tangguh
LNG,

of
which
53.4%
came
from
Papua.
In
addition,

there
were
157
Papuan
employees
who
worked

for
various
temporary
projects
in
the
Tangguh

area.





Furthermore,
in
order
to
help
Tangguh
employee

in
accessing
and
managing
their
salary,

particularly
the
people
from
DAVs,
two

automatic
teller
machines
(ATM)
have
been

recently
installed
in
Tangguh
LNG
site
(Stenkol

area
and
Admin
Building).
These
ATM
machines

can
be
used
by
employee
from
Direct
Affected
Documentation
of
New
ATM
in

Village
(DAV)
to
withdrawals
their
salary
prior
to
Tangguh
LNG
Site

being
“off-duty”.
They
are
for
non-cash

transactions
for
all
employees
who
work
in

Tangguh
LNG
Site.

April – September 2013 P a g e | 27

However,
as
part
of
Tangguh
LNG’s
commitment
to
AMDAL,
it
is
necessary
to
keep

the
Tangguh
LNG
project
site
free
from
cash
transactions
(no
trading)
even
though
the

ATM
machines
are
available.
Therefore
Tangguh
LNG
will
not
promote
or
facilitate

trading
at
site.



The
target
of
Papuan
Workforce
in
the
AMDAL
commitment
versus
the
achievement

is
as
follows:







Table
2.
AMDAL
Workforce
Commitment
vs.
Actual
during
Operation
Phase

2009 Amdal Commitment 2013 Amdal Commitment

DAV Rest of Papua DAV Rest of Papua
SKILL LEVEL Target
Actual
Target
Actual

Target

Actual

Target

Actual


(%)
(%)

2013
Sep’13
2013
Sep’13

(%)
(%)

(%)
(%)
(%)
(%)

Unskilled 100
70
0
30
100
100 0
0

Low skilled 50
44
50
56
70
68 30
32
Semi-skilled 2
15
27
61
8
35 41
56
Skilled 0
0
8
20
0
2 14
25
Managerial/
0
0
3
11
0
2 7
18
Supervisory
Source: Tangguh Workforce Management, September 2013

Generally,
the
actual
progress
of
Papuan
workforce
shows
that
most
targets
have

already
been
met.
However,
the
numbers
of
unskilled
and
low-skilled
workforce
in

DAVs
are
below
target;
these
low
numbers
are
compensated
by
the
number
of

unskilled
and
low
skilled
level
workers
from
Irarutu
III,
which
is
non-DAV,
hired
to
work

in
the
Babo
Operation
facility
including
camp,
airport
and
jetty.
This
resulted
in
Papuan

workers
numbers
exceeding
the
target
for
non-DAV
employment.





This
reporting
period
showed
an
increase
of
local
manpower
skills.
Currently
as
many

as
875
Papuans
are
employed
in
the
skilled
and
semi-skilled
level
areas.
Meanwhile

there
is
an
increasing
number
of
Papuan
who
reached
the
positions
of

supervisory/managerial
level
(72
people).

April – September 2013 P a g e | 28



































Figure
12

Papuan
Workforce
Composition
Trend
in
Tangguh
Operation
2010-2013
Source:
Tangguh
Workforce
Management,
September
2013



Although
the
recruitment
from
DAVs
is
close
to
meeting
the
AMDAL
commitment

target,
there
was
an
increasing
expectation
from
the
community
to
get
more

opportunities
to
work
at
Tangguh
LNG,
particularly
with
the
Tangguh
expansion

project.
It
is
important
to
reduce
the
community
dependency
of
Tangguh
project
by

creating
other
potential
jobs
in
the
villages
as
well
as
Bintuni
Bay
area.
The
micro-
enterprise
program
continues
to
develop
the
home
businesses
in
the
village
involving

the
indigenous
people.
Two
machinery
workshops
in
Saengga
and
Taroy,
Outlet
and

Bicycle
workshop
in
Babo,
as
well
as
stocking
points
programs
in
several
villages
are

well
established
and
provided
opportunities
for
the
local
to
improve
their
household

income.




On
the
other
side,
the
overall
education
program
has
shown
good
achievements
in
the

outcome
level
including
a
high
rate
of
student
graduation
in
the
national
exams
and

student
participant
ratio
in
the
learning
process.



10 0 % 10 0 %
99% 99.6%
96%

96% 93%
10 0 %
93% 9 1% 9 4 % 99.5
86%
90%

88.7
80% 86.1

71.1
66% 65.8





20.5

E le m e nt a ry J unio r H igh Se nio r H igh

2006 2007 2008 2009 2010 2011 2012

2009 2 0 10 2 0 11 2 0 12 2 0 13
Elementary Junior high Senior high

Figure
13

Student
Graduation
in
National
Exams
and
Participant
Ratio
in
Bintuni
Bay

Regency

Source: Tangguh Education Unit, September 2013

April – September 2013 P a g e | 29

In
2013,
student
graduation
rate
at
all
education
levels
(elementary,
junior
and
senior

high)
in
Bintuni
Bay
is
100%.
This
is
the
first
time
for
Bintuni
Bay
to
get
such
a

successful
achievement.
Continuous
support
to
improve
student
graduation
was

provided
including
capacity
building
for
teachers
in
preparing
learning
material
that
are

standardized
and
aligned
with
the
national
curriculum.
Nevertheless,
as
is
usual
in

Papua,
there
is
still
a
gap
of
teacher
number
in
the
schools,
including
the
DAVs.

The

Tangguh
education
program
has
recruited
several
teachers
to
assist
learning
process
in

DAVs.
Currently
there
are
21
part-time
teachers
(13
of
them
are
women)
recruited
for

DAV
schools
with
full
support
from
the
Tangguh
project.




In
the
Health
sector,
the
partners
of
community
health
programs,
MCC
and
YSA,
are

working
in
close
collaboration
with
the
Health
Office
at
regency
and
district
levels
as

well
as
with
the
community
health
services
at
village
level.
Several
outputs
were

delivered
during
this
period
including
malaria
control,
mother
and
child
health
program,

water
and
sanitation,
community
awareness
and
community
referral
for
early
diagnosis

and
treatment.
Recent
monitoring
showed
the
program
is
successful
in
maintaining

the
morbidity
of
malaria
in
DAV
areas,
as
well
as
reducing
mortality
cases
among

children
due
to
the
diarrhea.





The
figure
below
shows
the
malaria
prevalence
rate
until
August
2013.
Compared
to

2012,
malaria
prevalence
in
2013
decreased
from
0.3%
to
0.09%.
A
robust
effort
in

malaria
control
during
this
reporting
period
contributed
to
a
successful
low
level
of

malaria
prevalence
in
this
region.
The
efforts
included
ensuring
the
implementation
of

early
diagnostic
and
treatment
(EDAT)
in
community
health
services,
conducting

surveillance
and
mitigation
of
malaria
cases,
developing
malaria
cadres
in
the
village

and
company
level,
distributing
required
medicines
and
providing
adequate
treatment

at
community
level.













Malaria prevalence in DAVs areas & selected


villages

















Figure
14
Malaria
Prevalence
in
DAVs
and
Selected
Villages


Source:
Tangguh
PEH,
September
2013



The
fatality
trend
of
diarrhea
cases
was
successfully
kept
at
a
low
level.
Based
on

routine
surveillance,
there
were
two
fatality
cases
recorded
due
to
severe
diarrhea
in

Tofoi
and
Babo,
due
to
increasing
number
of
diarrhea
cases
during
dry
season
and

delayed
treatment.
Regular
awareness
program
on
personal
hygiene
and
diarrhea

April – September 2013 P a g e | 30

treatment
management
continued
to
be
conducted,
involving
health
cadres
in
the

villages.
During
this
reporting
period,
as
many
as
430
people
from
all
DAVs
participated

on
diarrhea
education
program.
It
is
expected
that
the
community
knowledge
on

diarrhea
prevention
will
increase,
and
a
healthy
lifestyle
will
be
adopted.





























Figure
15
Case
Fatality
Rate
due
to
Diarrhea
in
DAVs

Source:
Tangguh
PEH,
September
2013



Trained
health
cadres
and
community
health
services
in
the
village
have
contributed
to

improving
people’s
access
to
early
treatment.
Collaboration
between
traditional

treatment
and
health
providers
was
also
developed
to
ensure
people
get
adequate

treatment.
Social
survey
was
concluded
and
showed
that
the
community
people
in

DAVs
have
increased
their
awareness
to
seek
medical
treatment
instead
of
traditional

treatment
in
cases
of
sickness
in
the
family.




In
the
last
two
years,
Tangguh
LNG
Community
Health
program
has
supported
Teluk

Bintuni
hospital
development
in
Bintuni
Township.
Continued
technical
support
was

provided
covering
management,
technical
aspect
and
infrastructure.
In
the
future,
the

hospital
will
become
one
of
the
main
health
service
referral
in
this
region.
Currently
the

hospital
is
functioning
and
is
delivering
medical
checkups
(MCU)
for
Tangguh
LNG

employees
and
communities
around
Bintuni.




Employees Total
Month associated with Other
Tangguh Project
February 5 5
March 7 10 17
April 49 6 55
May 16 37 53
June 17 25 42
July 13 24 37
August 7 6 13


Table
3
MCU
program
in
Teluk
Bintuni
Hospital
in
2013
Source:
Tangguh
PEH,
September
2013

April – September 2013 P a g e | 31

On
the
HIV
and
AIDS
issues,
the
community
health
program
actively
promoted

prevention
and
awareness
programs
in
particular
to
high
risk
people,
as
well
as
in
the

DAVs.
This
is
an
effort
to
encourage
them
to
have
safe
behavior
and
to
prevent
the

spread
of
STI
and
HIV
cases
among
the
community.
STI
surveillance
with
volunteer

approach
was
conducted
to
understand
the
HIV
epidemic
at
community
level.

There

were
four
clinics
providing
STI
diagnostic
and
treatment
that
received
full
support
from

the
local
government.
A
voluntary
counseling
and
testing
(VCT)
clinic
was
established

at
the
RSUD
Bintuni
Bay
giving
community
the
opportunity
to
understand
their
HIV

status.
However,
the
absence
of
a
Local
AIDS
authority
(KPAD)
in
Bintuni
Bay
slightly

inhibited
the
acceleration
of
the
program
to
combat
HIV
and
AIDS
in
this
region.

Support
for
the
establishment
of
KPAD
to
coordinate
the
HIV
prevention
program

needs
to
be
planned
in
the
next
period.





The
governance
program
provides
comprehensive
support
for
local
government

officials
to
improve
their
capacity
in
leading
local
development
programs.
Since
Bintuni

Bay
regency
is
a
new
authority
that
was
established
in
2004,
the
governance
program

is
still
focusing
on
improving
the
local
government
mind-set
to
deliver
better
public

services
including
through
planning,
budgeting
and
administration
aspects
at
village,

district
and
regency
levels.
Continuous
training
and
comprehensive
mentoring
was

delivered
during
this
reporting
period
in
order
to
improve
local
government
capacity.

The
program
achieved
significant
progress
in
supporting
the
local
government
to

produce
several
strategic
documents
including
a
draft
of
revenue
sharing,
annual
plan

for
5
key
sectors,
as
well
as
strategic
planning
at
district
and
village
level.
The
program

will
continue
to
provide
technical
assistance.

A
series
of
workshops
to
raise
awareness
on
the
anti-corruption
regulation
was

conducted
in
several
regencies
including
Bintuni,
Teluk
Wondama
and
Kaimana,
in

collaboration
with
LP3BH.
As
many
as
90
people
participated
including
local

government
officials,
community
team
leaders
and
legislative
members.
This
is
an

effort
to
promote
the
principle
of
accountability
and
good
governance
to
the

community
as
well
as
changing
their
mind-set
and
behavior
to
be
more
transparent,

particularly
in
relations
to
public
issues
and
development
programs.




Tangguh
social
programs
were
implemented
since
2002
and
have
contributed
to

improvement
of
community
welfare
in
the
DAVs.
A
comprehensive
survey
on
social

economic
which
is
conducted
regularly
also
included
measuring
community
perception

on
welfare
index
combining
health,
economic
and
education
indicators.
The
latest

survey
showed
an
increasing
trend
suggesting
that
the
community
perceive
that

welfare
is
improving
in
the
DAVs.

April – September 2013 P a g e | 32




Best: 100

Poor: 0

Figure
16 Community
perception
on
Welfare
(Welfare
Index)
in
DAVs

Source:
Social
economic
survey,
2007,
2009,
2011
and
Livelihood
Survey
2012;
PSKK
UGM



Indigenous People Development


As
defined
in
the
Indigenous
People
Development
Plan
(IPDP)
document
and
aligned

with
the
Company’s
strategy
and
commitment,
efforts
to
support
the
Indigenous

people
development
continue.
Special
programs
targeting
indigenous
people
were

created,
including
a
workforce
program
and
capacity
building
in
micro-scale
business

opportunities
that
link
to
the
Tangguh
project.






Papuan
involvement
on
Tangguh
workforce
is
stable
for
the
last
two
years,
at
nearly

54%
of
the
total
employees.

Of
the
2,628
total
employees
in
October
2013,
22%

came
from
the
DAVs,
of
which
most
are
low
skilled
level
workers.

To
improve
their

skill
level
over
time,
a
development
program
for
these
workers
being
provided
to.


Currently,
there
are
six
people
from
DAVs,
who
reached
manager
and
supervisor

position
which
is
an
increase
compared
to
2010
where
there
was
only
one
DAV

worker
in
a
managerial/supervisory
position.

The
number
of
female
workers
involved

in
the
Tangguh
project,
either
from
DAVs
or
Papua,
is
still
quite
low.
Based
on
current

monitoring,
there
were
less
than
200
female
workers
for
all
activities
in
the
Tangguh

LNG
operation.



























Figure
17
The
trend
of
DAVs
and
Papuan
Workforce
in
Tangguh
operation

April – September 2013 P a g e | 33

Tangguh
continues
to
provide
opportunities
for
indigenous
people
to
work
in
Tangguh

and
meet
the
AMDAL
target
(e.g.
by
2029
at
least
85%
of
the
Operation
Tangguh

employees
should
be
Papuan).

As
we
have
shown
on
Table
1
above,
the
employees

from
DAVs
primarily
filled
the
un-skilled
or
semi-skilled
positions.

Therefore,
to

improve
their
capacity,
a
set
of
comprehensive
targets
were
defined
in
the
Papuan

Development
program,
which
involves
contractors
and
other
key
local
stakeholders

including
UNIPA.

Moreover,
to
develop
basic
capacity
for
employment
in
the
future,
a

scholarship
program
was
created
for
students
in
DAVs.
The
scholarships
are
provided

for
various
levels
of
education
to
provide
a
talent
pool
for
Tangguh
manpower

requirements,
as
well
as
other
needs
in
Bintuni.

The
table
below
describes
the

scholarship
program
for
students
in
DAVs
from
2008
to
September
2013:






Table
4
Scholarship
program
delivered
for
local
students
in
2008
–
2013
Provided 2008 2009 2010 2011 2012 2013
Oil & Gas senior high 2
26
41
28
34
39

Marine and fishery
5
7
10

senior high
General senior high 3 3
3
3

University

25
85

including AKAMIGAS, UNCEN, UNIPA,
TIER 1*


Source:
Tangguh
Education
Program,
October
2013



The
livelihood
program
continues
to
create
opportunities
for
micro
businesses
targeted

directly
to
indigenous
people.
The
program
still
focuses
on
agriculture
and
fishery

products
in
order
to
provide
supply
to
Tangguh
catering
and
local
market.
To
optimize

the
distribution
of
DAV
products,
some
new
initiatives
were
created
including

expansion
of
the
local
market
through
a
new
outlet
in
Bintuni
Township.
The
outlet
in

Bintuni
replicates
the
Babo
outlet
and
sells
DAVs
products
such
as
sago
crackers,

banana
crackers,
salted
fish
and
fresh
shrimp
to
the
locals.
Further,
new
community

businesss
such
as
bicycle
and
machinery
workshop
in
Babo,
Saengga
and
Taroy
are

functioning
and
receiving
orders
from
the
Tangguh
maintenance
department
and
the

local
community.
These
businesses
are
mostly
managed
by
the
indigenous
people

who
received
a
comprehensive
training
on
technical
and
management
skills.
Current

monitoring
showed
that
the
bicycle
workshop
has
a
capacity
to
repair
15
bicycles
with

total
business
of
approximately
IDR
30
million
in
average
per
month.






On
a
macro
scale,
the
BHBEP
program
continues
to
support
the
capacity
building
of

indigenous
firms
on
business
management
and
to
increase
their
opportunity
to

compete
and
get
involved
in
a
variety
of
projects
including
for
Tangguh.
There
have

been
18
indigenous
firms
from
across
the
Bird
Head
regions
(Manokwari,
Sorong,

Fakfak
and
Teluk
Bintuni)
who
received
technical
assistant
on
business
management

delivered
by
PT
Andalan
Unggul
Consultant.
The
mentoring
increases
the
indigenous

firms’
capacity
in
business
management
and
improves
their
ability
to
deliver
good

businesses.

April – September 2013 P a g e | 34





























Figure
18
Capacity
progress
of
Indigenous
Firms
in
the
latest
condition.

Source:
PT
Andalan
Unggul,
October
2013



The
indigenous
firms
have
participated
in
some
various
projects
and
business
that

organized
by
government,
private
sectors,
as
well
oil
and
gas
companies
including
BP.

Since
2008,
there
was
a
significant
increase
in
the
number
of
local
firms
receiving
new

contracts
in
projects.
However,
there
were
very
few
local
firms
that
have
opportunity

to
be
involved
in
the
Tangguh
project
due
to
high
standard
requirement.
BHBEP

continues
to
advocate
and
increase
the
local
firm
capacity
to
meet
BP
requirements.






2.7




BP


1.58 1.6 Oil & Gas Non BP

1.5 1.4

Private Sector-Non Oil & Gas

Government



0.4





2008 2009 2010 2011 2012 Sep-13


Figure
19
Number
of
contract
won
by
local
firms
during
2006
until
September
2013


(in
million
dollars)

Source:
PT
Andalan
Unggul,
October
2013

A
comprehensive
assessment
in
understanding
the
cumulative
impact
of
the
Tangguh

project
operation
and
other
development
in
Bintuni
Bay,
especially
to
the
indigenous

people,
was
conducted
involving
experts
from
universities.

The
result
provided
several

strategic
recommendations
for
consideration
during
the
formulation
of
the
new

AMDAL
and
the
future
Tangguh
social
programs.

The
experts
recommend
BP

April – September 2013 P a g e | 35

continue
its
local
capacity
development
program
with
more
emphasis
on
indigenous

people
development.





At
the
community
level,
Tangguh
continues
to
build
awareness
on
the
impact
of
influx

migration
for
village
and
district
officials.
The
Tangguh
social
team
also
provided

comprehensive
mentoring
on
migration
control
through
the
implementation
of

population
information
and
administration
systems.
Recently,
several
villages
have
also

established
a
local
regulation
on
migration
management
in
order
to
anticipate
the

increasing
number
of
local
migrants
and
the
social
condition
in
the
villages.




From
a
cultural
aspect,
Tangguh
continues
to
keep
the
preservation
of
local
values

including
history,
customs,
languages
and
arts.
Several
efforts
were
conducted

including
documentation
of
cultural
values
through
research
and
assessment
on

cultural
issues,
collection
and
publication
of
folklore
and
support
of
cultural
events
in

communities.
As
mandated
in
AMDAL,
Tangguh
has
also
kept
its
commitment
to

maintain
the
heritage
of
local
cultural
sites
by
the
communities
in
surrounding
of

Tangguh
site
project.







































Figure
20
the
handover
ceremony
of
folklore
story
books
from
the
TLO
team
to
Local

government
and
art
performance
of
Babo
community
during
Independence
Day

commemoration
2013.
These
are
as
recognition
and
effort
of
Tangguh
commitment
to

keep
the
local
values



To
ensure
the
Indigenous
people
development
programs
meet
its
objective,
The

Tangguh
project
will
evaluate
and
enhance
the
program
in
the
future
to
involve

external
stakeholders,
in
particular
the
local
government,
for
program
collaboration
and

implementation.

April – September 2013 P a g e | 36