JAPAN SOCIAL DEVELOPMENT FUND (JSDF)

Grant Funding Proposal (FY11 – Round 33)

A. BASIC DATA

Beneficiary Country: Indonesia

Grant Name: Improving Governance for Sustainable Indigenous Community Livelihoods in Forested Areas

Grant Recipient: AMAN (Aliansi Masyarakat Adat Nusantara – the National Indigenous Peoples’ Alliance of the Archipelago

Name of Implementing Agency or Agencies with Joint Implementation:

AMAN (Aliansi Masyarakat Adat Nusantara ) Jl. Tebet Utara IIC No.22, Jakarta Selatan, Indonesia Phone: +62-21-8297954, Fax: +62-21-8297954, www.aman.or.id

Implementing Agency Type:

CSO

Main Sector: AT Forestry Main Theme: 60 Indigenous Peoples

Recipient Grant Amount: US$ 2,857,143

Bank Incremental Costs Grant Amount: US$ 142,857

Total Grant Amount: US$3,000,000

B. PROJECT SUMMARY

Development Objective: The development objective of the grant is to improve the livelihoods of 250 indigenous communities located in the ten main forest provinces, and to improve the capacity of indigenous communities to participate in, and benefit from, national and international forest policy developments.

Strategic Context: Reducing poverty is a key priority in Indonesia’s development plans. According to the 2010‐2014 National Medium‐Term Development Plan, the Government of Indonesia (GOI) aims to reduce absolute poverty from 14.1% in 2009 to 8‐10% in 2014. This will be achieved through improved income distribution, through social protection that is based on the family, through community empowerment, and through expansion of economic opportunities for the poor.

About a quarter (50-60 million) of Indonesia’s population lives in the mostly rural, state-claimed “forest zone,” and these people are poorer than the national average. This area is also home to most of Indonesia’s customary (adat) communities, many of who are forest-dependent and poor or vulnerable to poverty. Poverty alleviation remains a challenge in the forest-zone. Communities that live there generally do not have formal rights to their land and this leads to open conflict over land use with logging and plantation companies, and a poor investment climate. While forests provide important resources to local communities, unclear use rights, bureaucracy, poor access to markets, and lack of institutional capacity often prevent the full economic use of these resources. Forest dependent people are directly affected by forest policy developments but lack of empowerment has meant that local communities have been excluded from policy processes.

The proposed activity is aligned with the Country Partnership Strategy (CPS) 2009-2012 for Indonesia, particularly Core Engagement Area (CEA) No. 5: Environmental Sustainability and Disaster Mitigation and with the Principles and Practices laid out in the CPS which include strengthening, where possible, the incentives and processes to promote accountability for increased government effectiveness. The project is also consistent with, and complementary to, the Bank’s other policy engagements and TA activities on forestry in Indonesia.

Grant Components: This proposal aims to contribute towards the achievement of the above-mentioned capacity building objectives by strengthening the organizational, technical, and entrepreneurship skills of local community-based organizations. The objective will be achieved through implementation of the following four components: 1) promotion of participatory land use planning; 2) capacity building of indigenous organizations; 3) development of forest resource and cultural-based income generation; and 4) promotion of project management, monitoring and evaluation, and knowledge dissemination.

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GRANT SUPPLEMENTARY INFORMATION

PART I

1. PROJECT INFORMATION

1.1 Strategic Context

Key elements of Indonesia’s poverty alleviation strategy. Reducing poverty is a key priority in Indonesia’s development plans. According to the 2010‐2014 National Medium‐Term Development Plan, the Government of Indonesia (GOI) aims to reduce absolute poverty from 14.1% in 2009 to 8‐10% in 2014. This will be achieved through improved income distribution, through social protection that is based on the family, through community empowerment, and through expansion of economic opportunities for the poor.

Key constraints to achieving poverty alleviation in forest areas. About a quarter (50-60 million) of Indonesia’s population lives in the mostly rural, state-claimed “forest zone,” and these people are poorer than the national average. This area is also home to most of Indonesia’s customary (adat) communities, many of who are forest-dependent and poor or vulnerable to poverty. Poverty alleviation remains a challenge in the forest-zone, and while forests provide important resources to local communities, unclear use rights, bureaucracy, poor access to markets, and lack of institutional capacity often prevent the full economic use of these resources. Communities living in the forest zone generally do not have formal rights to their land and this leads to open land use conflict with logging and plantation companies, and to a poor investment climate. This project strengthen processes to develop and register community land use maps in target areas and will build capacity for entrepreneurship and sustainable management of forest resources.

Forest dependent people have been largely excluded from the forest policy processes that have direct impacts on their lives and have not had the opportunities to become protagonists in their own strategic development due to lack of capacity and empowerment. The project will focus on the communities’ ability to represent themselves and their economic, environmental, and social concerns in the context of governmental policy dialogue, public consultations and decision-making processes.

Consistency with Existing World Bank Programs and Country Partnership Strategy (CPS). The project is consistent with the Indonesia CPS (FY2009-2012) and especially with Core Engagement Area 5 (environmental sustainability and disaster management). The project is also consistent with the Principles and Practices laid out in the CPS which include strengthening, where possible, the incentives and processes to promote accountability for increased government effectiveness, through for example social accountability mechanisms to leverage voice and participation. The activities will complement the existing Bank focus on engaging highly marginalized populations in participatory development processes; provide capacity building and direct assistance measures offered out to poor indigenous communities by strengthening their capacity to participate in the development process. The activities will also support other CPS core engagements areas related to private sector development, infrastructure and community development.

Rationale for JSDF Funding. The proposed grant is in line with JSDF guidelines and broader World Bank priorities. Trust fund instruments are critical for promoting social inclusion and to implement specific capacity building strategies and studies. Trust funds tend to be more quick-disbursing than loan funds, they allow flexibility in carrying out necessary baseline surveys prior to implementation, and they allow for a quick response to issues that arise during field implementation. In the past, this type of funding base has allowed community programs to act in a timely manner as well as commission independent evaluations and studies to inform day-to-day operations and improve program effectiveness. Engagement with vulnerable groups has not been the priority of the government when borrowing. This area of engagement will strengthen knowledge activities from small existing grants that will feed into the broader policy dialogue.

1.2 Main Beneficiaries

The project activity was designed in close consultation with Indigenous Peoples who are the main beneficiaries of the grant. AMAN carried out an extensive consultation process with IP representatives to provide inputs to this program and to build broad based support. Consultations where program components were discussed included a National Council Meeting, three Central Governing Body meetings, three REDD Working Group meetings, and a coordination meeting. IP representatives from Papua, Sumatra, Kalimantan, Sulawesi, Bali, Nusa Tenggara and Maluku participated in the consultation process.

This grant will target approximately 250 indigenous communities and villages and their dependents, amounting to approximately 250,000 direct and indirect beneficiaries in total. Individuals will benefit directly from training, from small grant disbursements, from participation in land use planning and livelihood activities, and from the resulting positive impacts on rural livelihoods. A conservative estimate assumes that 10 households will benefit from each land use plan. With 5 people per household on average in Indonesia, and 250 land use plans developed by the project, the direct beneficiaries from grant inputs will be approximately 12,500 individuals. It is assumed that individuals benefitting from training, capacity building, and small grant allocations will be a subset of this number.

1.3 Project Location

Indonesia. The project will target indigenous communities in ten key forest provinces. These provinces are: Central Kalimantan, East Kalimantan, West Kalimantan, Papua, West Papua, Jambi, South Sumatra, Aceh, Riau, and Central Sulawesi.

1.4 Project Duration: 3 years Project Start: 10/1/2011 Project End Date:

12/31/2015

1.5 Task Team Leader Juan Martinez, EASIS

1.6 GRANT DEVELOPMENT OBJECTIVE

The development objective of the grant is to improve the livelihoods of 250 indigenous communities located in the ten main forest provinces, and to improve the capacity of indigenous communities to participate in, and benefit from, national and international forest policy developments. This objective will be achieved by strengthening community governance, improving local customary institutions, and promoting income generation activities through activities in four components: (1) participatory planning of land use will be conducted in 250 villages; this will identify at least 30 poor marginalized communities where the other three components will be carried out: (2) capacity building of indigenous village and organization representatives; (3) forest resources and cultural-based income generation activities; and (4) project management, monitoring, evaluation, and knowledge dissemination.

1.7 DEVELOPMENT OUTCOME INDICATORS QUANTIFIED TARGET

1.7(a) Communities complete participatory land use plans through participatory mapping and profiling.

250 participatory land use plans completed

1.7(b) Indigenous communities have increased capacity to participate in national dialogues on forest policies.

At least 10 Local Organizations are involved in forest policy discussions, and at least 5 develop feasible forest-related project proposals.

1.7(c) Increased capacity of community representatives, Indigenous Women, and indigenous organization representatives in mapping and business enterprise.

1,545 individuals directly involved in mapping, land-use planning or community enterprises.

1.7(d) Local livelihoods are improved through increased income from new businesses through Community Enterprises.

Income of 30 targeted communities increased by at least 30-50%.

2. GRANT RECIPIENT AND IMPLEMENTING AGENCY

2.1 Recipient Name: AMAN (Aliansi Masyarakat Adat Nusantara- The National Indigenous Peoples’ Alliance of the Archipelago)

2.2 Recipient Background:

Founded in 1999, AMAN is a membership organization of 1,163 Indigenous (traditional or adat) Communities1 from across Indonesia that works to create space for indigenous persons to recover and assert their human rights and fundamental freedoms to welfare and dignity. AMAN’s mission is to empower, advocate and mobilize IPs of the archipelago to protect their collective rights and to live in ways that safeguard the environment for current and future generations. Their programs meet local, national and global challenges by using their own indigenous values, knowledge and solidarity to promote social justice, ecological sustainability and human welfare.

AMAN has the necessary qualifications and experience to oversee the implementation of the grant activities. AMAN has long experience in managing international financial resources from various Donors including European Union, DFID, USAID, NORAD, UNDP, ICCO, CORDAID, and Ford Foundation. AMAN has an approximate annual budget of US $ 660,000. The AMAN national office will provide continuous support to field offices to ensure the success of the project.

AMAN’s diverse and representative governance system contributes to its suitability to implement this project. The organization’s National Council consists of community members from across the archipelago, representing diverse ethnicities, languages, religions (including indigenous belief systems), and cultures. This diversity enriches AMAN’s knowledge and helps the organization understand the basic challenges faced by Indigenous Peoples in Indonesia.

AMAN’s experience has contributed to the design of the project, including suggested approaches for strengthening community-based indigenous organizations, and the introduction of practical schemes for REDD+ applications in forested areas with indigenous communities.

The Ministry of Environment has endorsed the role of AMAN as an executing and implementing agency for this project.

2.3 Implementing Agency Details

Agency Name: AMAN (Aliansi Masyarakat Adat Nusantara )

Address Jl. Tebet Utara IIC No. 22 Jakarta Selatan, INDONESIA

Contact Person in Proposed Implementing Agency

Abdon Nababan (Secretary General) Rukka Sombolinggi (alternate)

Phone: Telp/Fax: +62 21 8297954 Mobile +62(0)811111365 (Abdon Nababan); +62 (0)82114164408

Email: Abdon.nababan@aman.or.id rsombolinggi@aman.or.id

2.4 Implementing Agency Background

Project implementation will be carried out by AMAN through a Project Management Unit (PMU). The PMU will be responsible for implementing the project in the field, and will work in close collaboration with local organizations (LOs) that AMAN has previously established in the project areas. The PMU will include a project coordinator, a procurement officer, an accountant, an administrative assistant, and two technical officers. The project will be implemented through AMAN’s seven Bio-Regional Coordination Offices (Sumatra, Java, Kalimantan, Sulawesi, Bali and Nusa Tenggara, Maluku, and Papua). This territorial approach capitalizes on AMAN’s existing decentralized decision-making process and ensures ownership among AMAN’s members.

1 Adat communities, or Masyarakat Adat, are defined as traditional communities that are still bound together in association, have

adat institutions, customary law that is still adhered to, a territory defined by customary law, and whose existence is affirmed by the community itself together with government.

Institutional arrangements for project execution are intended to enable Village and Local Organizations to assume a primary role in project implementation. AMAN identified ten Local Organizations (LOs) through an institutional and technical analysis that took place during proposal preparation. These LOs have extensive experience in working with Adat Communities in several fields, and their work with wide networks of members at the community level has allowed them to make significant contributions to the design of the project. The LOs will be responsible for facilitating and promoting the project at the community level in their respective project areas. Each LO will follow the operational manual's guidelines for criteria and procedures for promoting the project, selecting community proposals, and ensuring efficient implementation.

2.5 Other institutions/NGOs that will be involved in implementation

Activities are centered on strengthening civil society organizations and will also seek to promote formal and long-term alliances between these organizations and private sector enterprises, certification agencies, research institutions such as the World Agroforestry Center (ICRAF), and relevant NGOs.

3. INNOVATION AND SUSTAINABILITY

3.1 Innovation

This project provides Indigenous communities and organizations with innovative means to enable them to be active participants in forest resource management. The grant will introduce and evaluate creative approaches to: (a) institution building for indigenous grass-roots community based organizations; and (b) group approaches to the adoption of forest management schemes through the improvement of non-timber forest production practices, applications of payment for environmental services approaches, and other livelihood activities. All these activities will be undertaken with the objective of forging longer-term social inclusion schemes into Indonesia’s forest policies, specifically for the most disadvantaged groups living in remote areas. The project is innovative because it brings together marginalized and vulnerable Indigenous communities and organizations within a framework of common interest, enabling direct contact with PES markets and opportunities to gain experience, invest, and align their sustainable production practices with international demand for ecosystem services.

3.2 Sustainability

The project is designed for long term sustainability through strengthened institutional, technical, economic and managerial capacity of indigenous communities and organizations, which will provide long-term social and economic benefits. AMAN is participating actively in the design process of a number of Indonesia’s forest policies and will ensure that all outcomes from this grant will be incorporated, for ensuring community participation. Specifically, assisted community-based organizations in target areas will have trained representatives with the capacity to produce and market quality non-timber forest products, and will have developed skills for not only reducing forest loss, but also for accessing and distributing financial benefits from PES approaches. Furthermore, the outcomes from the grant will be a good example for other community-based organizations, motivating them to advance their efforts to initiate similar activities through replication and knowledge transfer.

4. CONSULTATION WITH JAPANESE DEVELOPMENT PARTNERS

4.1 Name of Representative

1. Mr. Ito Taku (Second Secretary, Embassy of Japan) 2. Mr. Ina Yasuharu (Secretary for Forestry, Fishery and Nature Conservation, Embassy of Japan)

Date of Meeting 2/2/2011

4.2 Summary of Consultation:

The Bank Team including the Task Team Leader and representatives from AMAN presented the overall scheme of the JSDF support proposal to Mr. Ito Taku (Second Secretary, Embassy of Japan) and Mr. Ina Yasuharu (Secretary for Forestry, Fishery and Nature Conservation, Embassy of Japan). The Embassy expressed that it would support the request as the proposed activities are highly complementary to other programs being supported by Japan.

4.3 Potential Collaboration:

The Japanese government is developing a Community Forest Plantation program (HTR) in cooperation with the Ministry of Forestry of Indonesia. The Embassy of Japan has indicated that it would try to identify possible strategic links between the proposed initiatives JICA’s existing forestry program.

4.4 Name of Representative

Mr. Takahara Shigeru (Chief Advisor/National Strategy in the Forest and Forestry Sector of JICA)

Date of Meeting 4/7/2011

4.5 Summary of Consultation:

At a second meeting in the Japanese Embassy, the Task Team Leader and the representatives from AMAN presented the hard copy of the full JSDF proposal including an explanation of the JSDF support proposal to Mr. Ito Taku (Second Secretary, Embassy of Japan), Mr. Hibino Yusuke (Secretary for Forestry, Fishery and Nature Conservation, Embassy of Japan); and Mr. Takahara Shigeru (Chief Advisor/National Strategy in the Forest and Forestry Sector of JICA). The Embassy expressed that it would support the request as the proposed activities are highly complementary of other programs being supported by Japan.

4.6 Potential Collaboration

JICA is implementing and financing several programs in the same regions that this project will be implemented; JICA representatives pointed out that there will be a lot opportunities for synergies and complementing activities for benefiting the forest dependent people. Through consultations with JICA implementers, as well as Ministry of Forestry counterparts, the World Bank and AMAN will seek specific ways to interact with and benefit from several GOJ-funded technical cooperation projects, which include activities with local communities in the field and contribute to REDD+ in Indonesia. Some examples of projects identified during consultation include: Community Development and Fire Control in Peat Land Area (West Kalimantan and Riau), a Community Forest Plantation program (HTR), and a Forest Preservation Program, all implemented with the Ministry of Forestry.

5. JAPANESE VISIBILITY

5.1 Confirm that a grant signing ceremony will take place in the recipient country, including representatives from the Embassy of Japan, and that a press release would be issued in local newspapers

Agreed

5.2 Confirm that the Embassy of Japan in the recipient country will be invited to participate in field visits and project events, and will receive copies of progress review mission reports

Agreed

5.3 Describe the measures, other than the above, to be taken to ensure the visibility of Japan’s contribution :

Grant activities will begin with a national workshop, where the Ambassador of Japan to Indonesia will be invited to deliver remarks. Other participants will include key stakeholders in forest policy processes. The workshop will highlight the features of the grant provided and the contributor for this grant. Documentation, press coverage, and reports will include the logo of Japanese donors, and donor representatives will be able to participate in key events. The progress report of the grant activities will be provided to the Embassy every three months. During, and possibly prior, to project implementation, AMAN will schedule pilot site field visits together with Embassy representatives in order to monitor project development and examine challenges as they occur at the project level.

6. DETAILED DESCRIPTION OF GRANT COMPONENTS

6.1 Component 1 Participatory Land Use Planning $ 1,282,649

This component will focus on the wider and systematic application of existing models of participatory planning processes. This component will support production of indigenous peoples’ maps and land use plans and will promote these maps and plans for economic development and PES initiatives. The activities will facilitate institutional learning at different levels for indigenous communities and their organizations. The activities also will assure transparency, and enable community-based organizations to take a primary role in PES schemes at the local level. This component will finance the following activities: 1) Training communities on the effective use of geographic information technology and participatory mapping, 2) Participatory land use planning and design, and 3) Empowerment of Ancestral Domain Registration Agency (Badan Registrasi Wilayah Kelola Adat, or BRWA) offices. In detail, the activities that will be financed under this component are:

1. Trainings and workshops on the effective use of geographic information technology and participatory mapping: AMAN has trained a number of mapping experts who will provide training for communities on the culturally appropriate use of geographic information and communication technologies. Local organizations and communities will be provided with mapping equipment such as GPS units, computers, software and related geographic information and communication technologies. In addition, workshops on Participatory Planning and Land use will be conducted for communities. Finally, selected representatives from the communities will be trained to develop skills in community mapping and cultural-based land use planning.

2. Participatory land use planning and design. Mapping experts will help communities to conduct participatory mapping in the following areas: (1) cultural land use identification, (2) cultural land use mapping; (3) temporal change analysis, (4) sustainability analysis; (5) land management plan design. All of these activities will provide inputs that reflect the needs of indigenous communities in forest policy discussions and negotiations. This component will provide baseline information to Activity 6.3 on Forest Resource and Cultural-based Income Generating Activities.

3. Empowering the existing Ancestral Domain Registration Agency (BRWA). In close cooperation with AMAN,

BRWA offices will have the responsibility to register, verify, and publish maps and cultural based land use plans and to develop knowledge products such as books and video documentaries. The grant will provide direct support to the BRWA offices through funding for equipment, on the ground activities, transportation, and database management.

Outputs: 1. At least 50 Trainings and Workshops to facilitate dialog and knowledge sharing among indigenous peoples, government institutions and policy makers conducted.

2. At least 18 indigenous mapping experts and; 36 indigenous database and GIS specialists trained. 3. At least 250 maps and profiles of indigenous communities available 4. At least 100 community maps registered, verified, and published through websites, knowledge products

etc. 5. At least 18 BRWA offices better able to provide quality service for registration, verification and

publication of indigenous peoples’ maps. 6. At least 18 local indigenous peoples’ organizations equipped with GIS and Mapping Tools (GPS,

Computer, Software etc) and able to operate them effectively.

6.2 Component 2 Capacity Building for Community-Based Organizations $578,800

This component will focus on capacity building activities to strengthen the organizational, technical, and entrepreneurship skills of local community-based organizations engaged in forestry and agro-forestry activities. Special attention will be paid to the inclusion of women, since women play a critical role at the community level. This component also will facilitate the dialogue between local governments and indigenous communities and

organizations on issues related to forest policy. Sub-regional organizations that are members of the AMAN umbrella organizations – in consultation with other local partners and groups - will select the beneficiary groups using clear and transparent criteria. In addition, this component also includes a special focus on indigenous women to promote their full and effective participation in decision-making processes. This component will finance the following activities: 1) Technical and financial support for indigenous communities, 2) Training on PES implementation, 3) Establishment of a learning exchange program, and 4) Capacity building of indigenous women. In detail, the activities that will be financed under this component are:

1. Technical and financial support for indigenous communities and their local organizations. Selected local indigenous representatives and organizations will be trained in organizational management and community organizing. Training on organizational management will be complemented by technical and financial support to strengthen organizational services and communication systems. Training on community organizing will be conducted twice a year and participants will be equipped with skills and knowledge related to community empowerment.

2. Training on forest resource management and Payment for Ecosystem Services (PES) implementation. Climate

Change Experts of AMAN’s Working Group on Climate Change will facilitate training sessions on Indigenous Peoples, forest policies, and PES schemes. The main purpose is to enable participating representatives from indigenous communities to increase their knowledge of administrative and technical issues related to PES schemes. This will enable them to actively participate in the identification of deforestation and forest degradation, and in the development of forest policies that are pro-poor. This activity also includes updating AMAN’s existing guidelines on Indigenous Peoples and REDD+.

3. Indigenous learning exchange program. Indigenous community representatives will be invited for exchange

visits to share their own experiences in forest resource management and PES schemes with other communities. Knowledge and experience shared can be related to economic development, engagement with PES activities, forest management etc. The format of the exchange program can be a stand-alone activity or can be part of or supplementary to other activities. Also, workshops at national and local government level to enable IPs to share their work and ongoing activities with government counterparts will be developed.

4. Capacity building of indigenous women. Workshops and trainings will be conducted to strengthen the existing

indigenous women’s national networks and their capacities to enable them to engage in decision making processes at community, local, sub-national, national, and international levels. In addition, trainings will be provided to ensure that they are equipped with adequate knowledge and skills related to forest policy developments, including REDD+.

Outputs:

1. At least 18 training sessions on organizational management system conducted participated by 180 participants from 18 local indigenous organizations to better serve the needs of adat communities.

2. At least 36 training sessions on Community Organizing for at least 720 community organizers conducted 3. At least 18 Trainings on PES conducted for at least 360 indigenous representatives trained and better

able to engage in PES schemes. 4. At least 30 learning exchanges among indigenous communities. 5. One Training Module and Tools on Indigenous Women and Decision Making Process developed. 6. At least 9 Workshop Trainings on Indigenous Women and Decision Making Process conducted with

participation of at least 180 indigenous women.

6.3 Component 3 Forest Resource and Cultural-based Income Generating Activities $ 635,000

The purpose of this component is to strengthen sustainable economic livelihoods of indigenous peoples. This component will target highly isolated communities in forested areas and will contribute to climate change mitigation initiatives, as well as to poverty alleviation. This component will finance the following activities in 30 villages within 4 to 6 demonstration areas: 1) Assessments of IP’s forest and cultural-based resources for income generation, 2) Development of community enterprises, 3) Indigenous enterprise financing, and 4) Facilitation of access to markets. As part of the operational manual, specific criteria will be set up for avoiding elite capture.

The activities that will be financed under this component are: 1. Assessments of IPs’ non-timber forest and cultural-based resources for Income generation activities. This activity will

build on the results of the Mapping and Land Use Plan activity (please see 6.1 Component 1 Participatory Planning of Land Use and Natural Resource Management: Activities 1 and 2), and will provide a basis for selecting appropriate community enterprises for development. The assessment process will be based on AMAN’s long experience of utilizing customary consultation approaches, which will be conducted through a free prior and informed consultation to ensure broad community support from the communities.

2. Development of community enterprises. The enterprises will serve as managing agencies for community forest resources. Resources managed can cover damar resin, rubber, rattan, other non-timber forest products, eco-tourism, food production, handy crafts, medicines, music and songs. Enterprises will have the responsibility for marketing, production, trading, monetary transactions, and benefit sharing. The component works by giving block-grants directly to each participating “Aman Member Organization (AMO)” located in the proposed demonstration areas, which on average consist of about 5-10 villages (the total number of targeted villages is 30). Each village prepares proposals for discussion at an inter-village meeting facilitated by the working group of each organization. Villages can submit up to three proposals, of which two come from women’s groups. Proposals can be for a wide range of environmentally friendly activities, from improving existing rubber orchards to simple arts and crafts production, and up to 25 percent can be towards providing capital to women’s groups for small businesses. A critical element of the component is that all villagers are given the opportunity to participate in the proposal preparation process and that decisions are under the customary laws of the participant communities.

3. Indigenous enterprise financing. Once villagers have prepared their proposals and have had them verified for technical feasibility by a team which includes project community facilitators, the proposals are discussed at an inter-village meeting where village representatives decide collectively which proposals will be financed through the project. The block grants to the AMO range from Rp. 25 million to Rp. 30 million (approximately US$25,000 to US$30,000). After proposals have been selected for implementation as subprojects, funds are released directly to collective village accounts at the sub-district level. From here, money is withdrawn for the implementation of the approved economic ventures.

4. Ensuring Facilitation of access to market. Products from indigenous enterprises will be promoted through retail

points, e-commerce and exhibitions. This process will be facilitated by AMOs. Indigenous peoples considerations. This project is an Indigenous Peoples project. AMAN has long experience in implementing this type of intervention and demonstrates best-practice principles for indigenous peoples’ involvement in program implementation, including: the recruitment and tailored training of facilitators from individual indigenous communities; use of culturally appropriate mechanisms for consultation such as local language translation and customary participatory planning processes. In addition to being beneficiaries, indigenous peoples are part of the program’s organizational structure. In summary, AMAN’s experience and structure complies with Bank policies on indigenous peoples. The project will include Practical Implementation Guidelines, which will cover Social and Environmental Safeguards; these guidelines will be an integral part of the project’s Operations Manual. Environmental considerations. This project is considered as a capacity building project with a small component on livelihood development. The project itself aims to improve the quality of life of participating communities and access to income generation activities from non-timber forest products. Under the proposed NTFP scheme, it is expected that no significant or irreversible environmental impacts are anticipated. The activities will be very small and it is proposed that the project will develop a negative list, which will be an integral part of the environmental codes of practices of this project for the mitigation of possible minor negative environmental impacts.

Outputs: 1. 20-30 indigenous communities ready for participating in cultural-based income generation activities are identified.

2. At least 4 demonstration indigenous enterprises established

3. At least 1 retail point developed 4. At least 3 annual exhibitions conducted. This can cover handy crafts exhibits, food festivals etc. 5. At least 20 Women’s Income Generating Groups supported.

6.4 Administration, Project Management, Monitoring and Evaluation, and Knowledge Dissemination

$ 360,694

A. Participatory Monitoring and Evaluation (PME) activities will support improved governance in the selected project areas by establishing procedures to facilitate dialogue and stakeholder inclusion in a coordinated process. PME will enable local actors to identify priorities, make decisions, and have the means to follow up in a timely fashion. The component will facilitate learning and adaptation to guide the other project components and potentially become an important means to articulate the voices of broader groups of organizations and donors and other relevant financial agencies engaged in Natural Resource Management. By engaging local organizations and communities in sharing and use of information, PME will: (i) strengthen demand for outputs from other existing monitoring systems; (ii) critically evaluate and ground-truth their major findings; (iii) provide feedback to quantitative monitoring systems about village needs. B. Project Management and Administration. As an implementing agency, AMAN will be responsible for the monitoring, analysis, and reporting of the results on an annual basis. In addition, AMAN will be in charge of financial management, procurement, monitoring, evaluation, and reporting. AMAN, in collaboration with AMAN Chapters, will produce annual reports (based on the above information) and disseminate these nationally and locally and to other project managers in the JSDF portfolio. The project will be administered in an efficient manner, ensuring that results are satisfactorily achieved. Project implementation will be carried out by AMAN through a Project Management Unit (PMU). The PMU will be responsible for implementing the project in the field, and will work in close collaboration with the local organizations (LOs) that AMAN has established in the project areas. The PMU will include a project coordinator, a procurement officer, an accountant, an administrative assistant, and two technical officers. The project will be implemented through AMAN’s seven Bio-Regional Coordination Offices (Sumatra, Java, Kalimantan, Sulawesi, Bali and Nusa Tenggara, Maluku, and Papua). This territorial approach capitalizes on AMAN’s existing decentralized decision-making process and ensures ownership among AMAN’s members. Institutional arrangements for project execution are intended to enable Village and Local Organizations to assume a primary role in project implementation. AMAN identified ten Local Organizations (LOs) through an institutional and technical analysis that took place during proposal preparation. These LOs have extensive experience in working with Adat Communities in several fields, and their work with wide networks of members at the community level has allowed them to make significant contributions to the design of the project. The LOs will be responsible for facilitating and promoting the project at the community level in their respective project areas. Each LO will follow the operational manual's guidelines for criteria and procedures for promoting the project, selecting community proposals, and ensuring efficient implementation. See also Annex 1: Project Organization Structure

1. Collection of baseline data. Baseline data will be collected during the initial phase of Component 1, 2 and 3. This includes: 1) Indigenous Community Profiles; 2) Forest Resources and Cultural-based resources for income generating activities in 21 indigenous communities; 3) operational cost of the 25 AMAN Chapters; 4) Indigenous women who are active in communities and in AMAN Chapters.

2. Measurement of Outcomes and impacts and financial supports. External evaluation of the overall project outcomes will be conducted. Evaluators will be selected through transparent process following a proper service procurement procedure. The impacts of trainings and financial support will be measured throughout and at the end of the activity in terms of: (i) improved knowledge and number of participants; (ii) number of forest resource plans/maps developed and in use; (iii) improved income through community enterprise development.

3. External audits. External audits ensure transparent and effective execution of grant administration and the appropriateness of financial management of financial resources.

Outputs: 1. Baseline Survey Report 2. 6 participatory M&E reports, 2 per year; 3. Annual participatory evaluation session reports; 4. Three audit reports (one per year). 5. Outcome Evaluation Report (based on Development Objective indicators) 6. Project Completion Report by AMAN

7. Knowledge Dissemination Seminar

7. ELIGIBLE EXPENDITURES

List all applicable eligible expenditures below in one or more categories as necessary. Eligible expenditures include consultant services (including audits), local training and workshops, small civil works, goods, sub-grants, and Bank incremental costs.

Category Amount (US Dollars) Percentage of Expenditures to be Financed

Percentage of Grant Total to Recipient

Goods 63,500 2.2%

Services 254,494 8.9%

Training 1,966,949 68.8%

Civil works 0.0%

Operating Costs 169,200 5.9%

Small Grants 403,000 14.1%

Total Grant to Recipient 2,857,143 100%

Bank Incremental Costs 142,857 5.0%

Total Grant Amount: $ 3,000,000

OPERATIONAL RISK ASSESSMENT FRAMEWORK

Project Development Objective(s)

The development objective of the grant is to improve the livelihood and capacity of 250 indigenous communities located in the ten provinces where REDD+ demonstration activities are being conducted and to improve the capacity of indigenous communities to participate in, and benefit from, forest policy developments such as REDD+.

PDO Level Results Indicators :

Communities complete participatory land use plans through participatory mapping and profiling.

Indigenous communities have increased capacity to benefit from REDD+.

Increased capacity of community representatives, Indigenous Women, and indigenous organization representatives in mapping and business enterprise.

Local livelihoods are improved through increased income from new businesses through Community Enterprises.

Risk Category Risk

Rating Risk Rating Explanation Risk Description

Proposed Mitigation Measures

1. Project Stakeholder Risks

1.1 Beneficiaries

M-I Conflicts of interest between the various benefiting organizations could arise during implementation.

The risk that conflicts of

interest arise between the

various benefiting

organizations during

implementation causing

blockages and

disagreements.

Periodic documented and

well facilitated meetings

between the organizations

and national and regional

entities participating in the

project. Transparent

management of the funds

and implementation of the

activities based on the

principles of mutual respect

and inclusiveness.

2. Operating Environment Risks

2.1 Country

M- L

The political will for economic reforms, good governance, and reducing corruption remains relatively strong and the Cabinet is focused on measurable performance targets, although there remain some questions on how to translate these into concrete actions.

Delays and inefficiency due to weaknesses in public procurement, especially in selection of consulting services and applicability of Bank Guidelines on public procurement due to issuance of the new Presidential Decree on public procurement, weak internal control in public financial management, and inefficient planning and execution of the budget.

Implementing the Country Partnership Strategy focus on a) mainstreaming the governance agenda across all aspects of the Bank program, with special attention to strengthening country institutions and greater use of country systems, where existing programs are found to have robust implementation and monitoring, e.g., in community driven development and school-based management, b) improving the quality of local administration and core services delivery; making decentralization more effective; and c) improving public financial management, public procurement, tax

administration, and anti-corruption initiatives.

3. Implementing Agency

Risks (including FM &

PR Risks)

3.1 Capacity

M-I AMAN is used to working with local NGOs and grass roots organization, making lack of coordination unlikely.

Poor coordination between

AMAN, the grass roots

organizations and NGOs in

project areas could lead to

inefficiency.

Significant support is being

provided by the grant to

strengthen AMAN’s capacity.

Periodic Planning meetings

and follow-up will be held

with the different actors

involved to share lessons

learned.

3.2 Governance

L AMAN was closely involved in initiating the project concept and has strong project ownership. The project is closely related to AMAN’s objectives.

Poor alignment of project goals with AMAN’s objectives would lead to poor implementation.

4. Project Risks

4.1 Design

M-I There is a large pool of expertise on indigenous issues available beyond the project boundary.

Sufficient and suitable capacities are not available at the local levels for training and tourism product management.

Source requisite indigenous expertise locally, regionally, and internationally and provide appropriate training and workshops to develop local capacities.

4.2 Social & Environmental

M-I AMAN is an indigenous peoples association and has long experience working with indigenous villages and organizations in Indonesia.

Issues related to World Bank Indigenous Peoples and Physical Cultural Resources policies could raise safeguard concerns.

The activity was designed in close cooperation with AMAN and its members and will continue to be implemented through AMAN, ensuring that IP concerns will be an integral part of project implementation.

4.3 Program & Donor

L There are no foreseen risk relating to strategic fit.

4.4 Delivery Quality

M-L The experience in AMAN demonstrates that the Indigenous community has already faced and overcome technical and cultural obstacles in initiating small scale training and income generation activities. Timing may still be an issue, i.e. the project may require significant start up time to disseminate the proposals and to train village producers and organization leaders

Project start up and calendar may be difficult to maintain given technical issues, (lack of services and infrastructure) as well as the need to accommodate to cultural frameworks.

The time frame of the project has been designed to allow for consultation processes, as well as work in more than one area, allowing progress to continue in different areas at different times.

M-L = Medium Risk: High Likelihood, Low Impact; M-I = Medium Risk: High Impact, Low Likelihood

L = Low Risk: Low Impact, Low Likelihood; H = High Risk: High Impact, High Likelihood

ANNEX 1: Management Arrangements

Project Board:

In running the Project, the Secretary General of AMAN and AMAN’s National Council as the Central

Governing Body, work together and coordinate through the regular annual meeting to decide the following:

1. To Review and approve on the work plan proposed by Project Leader and Project Director (Secretary

General) Formulation and decision-making on the Program of Work of AMAN.

2. To Review the progress of the Project

3. Make recommendations for the improvements to the Project implementation and management

4. Any other important decisions

Project Leader/Manager:

1. To Prepare work plan for the Project Board consideration 2. To ensure the timeliness and quality of the project implementation activities 3. To prepare Annual Review Report share with the Project Board.

Project Management and Administration:

As an implementing agency, AMAN will be responsible for the monitoring, analysis, and reporting of the

results on an annual basis. In addition, AMAN will be in charge of financial management, procurement,

monitoring, evaluation, and reporting. AMAN, in collaboration with AMAN Chapters, will produce annual

reports (based on the above information) and disseminate these nationally and locally and to other project

managers in the JSDF portfolio. The project will be administered in an efficient manner, ensuring that results

Project

Leader/Manager

Project Board

Central Governing Body Secretary General

(Executive)

National Council

Participatory Monitoring

and Evaluations

Project

Management and

Administration

Project Organisation Structure

Component 1. Participatory

Land Use Planning

Component 3. Forest Resource

and Culturally-based Income

Generating Activities

Component 2. Capacity Building

for Community-based

Organizations

are satisfactorily achieved.

Participatory Monitoring and Evaluation (PME): To support improved governance in the selected project areas by establishing procedures to facilitate dialogue and stakeholder inclusion in a coordinated process. PME will enable local actors to identify priorities, make decisions, and have the means to follow up in a timely fashion. The component will facilitate learning and adaptation to guide the other project components and potentially become an important means to articulate the voices of broader groups of organizations and donors. By engaging local organizations and communities in sharing and use of information, PME will: (i) strengthen demand for outputs from other existing monitoring systems; (ii) critically evaluate and ground-truth their major findings; (iii) provide feedback to quantitative monitoring systems about village needs.

MONITORING FRAMEWORK AND EVALUATION

The project will be monitored through the following:

Within the annual cycle

On an annual basis, an annual assessment shall record progress towards the completion of key results

Project Progress Reports (PPR) shall be submitted by the Project Leader/Manager to the Project Board

through Project Assurance, using the standard report format available in the Executive Snapshot.

a project Lesson-learned log shall be activated and regularly updated to ensure on-going learning and

adaptation within the organization, and to facilitate the preparation of the Lessons-learned Report at the

end of the project

Annually

Annual Review Report. An Annual Review Report shall be prepared by the Project Manager and

shared with the Project Board. .

Annual Project Review. Based on the above report, an annual project review shall be conducted during

the fourth quarter of the year or soon after, to assess the performance of the project and appraise the

Annual Work Plan (AWP) for the following year. In the last year, this review will be a final assessment.

This review is driven by the Project Board and may involve other stakeholders as required. It shall focus

on the extent to which progress is being made towards outputs, and that these remain aligned to

appropriate outcomes.

JSDF -- DETAILED COST TABLE DATE: 2 August 2011

PROPOSED ACTIVITY: Improving Governance for Sustainable Indigenous Community Livelihoods in Forested Areas

COUNTRY/PROGRAM: Indonesia

Components & Activities Expenditure

Category

Procurement Method

1

Quantity

Unit Unit Rate

(US$) Total Cost

(US$)

% of total costs

(checking

purposes

1. COMPONENT: Participatory Land Use Planning

1.1. Training communities on adequate and effective use of geographic information technology and participatory mapping

Training package 2 for community facilitators (1 week operational

and technical livelihoods training) Training 54 community facilitators $ 500.00 $ 27,000.00

Training for Mapping Spesialist (covering costs of community facilitators stipend, travel & per diem)

Training 18 packages $ 5,000.00 $ 90,000.00

Training for Database (covering costs of community facilitators stipend, travel & per diem)

Training 18 packages $ 5,000.00 $ 90,000.00

Training for GIS Specialist (covering costs of community facilitators stipend, travel & per diem)

Training 18 packages $ 5,000.00 $ 90,000.00

Providing Mapping equipments (GPS, Computer, Software etc) and related geographic information and communication technologies for 18 offices

Goods shopping 18 packages $ 2,500.00 $ 45,000.00

Workshops on Participatory Planning and Land use (covering costs of facilitators stipend, travel & per diem/honor)

Training 44 Local level in 3 years $ 2,242.02 $ 98,648.88

Workshops on Participatory Planning and Land use. (covering costs of facilitators stipend, travel & per diem/honor)

Training 6 in 3 years $ 15,000.00 $ 90,000.00

1.2. Participatory planning and design

Facilitator fees for training Community mapping Training 36 months and for 250 training

$ 500.00 $ 18,000.00

Maps and profiles of indigenous communities (covering cost for facilitator stipend, travel & perdiem)

Training 250 training community mapping

$ 2,000.00 $ 500,000.00

Mapping Documentation (Still and Video Camera) Training 250 package rent $ 24.00 $ 6,000.00

1.3. Empowering of Ancestral Domain Registration Agency (Badan Registrasi Wilayah Kelola Adat, or BRWA) offices

Empowering of BRWA Local Office better able to provide quality service for registration, verification and publication of IPs maps.

Training 57 package ($4,000 x 3 year x 19 offices )

$ 4,000.00 $ 228,000.00

SUBTOTAL COMPONENT 1: $ 1,282,648.88

2. COMPONENT: Capacity Building for Community-Based Organizations

1. Empowerment and Technical and financial support for indigenous communities and their local organizations

1.1. Technical and financial support for indigenous communities

Local IPs Organization strengthened to better able serve the needs of Indigenous Communities. (financial software)

Training 18 Local IPs Organization x years

$ 1,500.00 $ 27,000.00

Facilitator travel for technical support (covering costs of facilitators stipend, travel & per diem)

Training 18 field trips x 1 facilitator over 3 yrs.

$ 500.00 $ 9,000.00

Facilitator/Trainer Fee for training management Training 18 facilitators $ 500.00 $ 9,000.00

Package Trainings on organizational management system conducted (covering costs of facilitators stipend, travel)

Training 18 Package in each training in Local IPs Organization

$ 3,000.00 $ 54,000.00

1.2. Conducting trainings on Community Organizing

Package trainings will target at least 720 indigenous youth and leaders will be provided by skills in community organizing. (covering costs of 72 facilitators stipend, travel & per diem)

Training 36 Package training x 2 year $ 5,000.00 $ 180,000.00

Local facilitators Training 252 36 training x 7 facilitators $ 400.00 $ 100,800.00

2. Training on Forest Resource Management and PES Implementation

Training package 2 for facilitators (1 week operational and

technical livelihoods training) Training 36 facilitators $ 500.00 $ 18,000.00

Costs of 50 facilitators stipend, travel & per diem Training 18 trainings $ 4,500.00 $ 81,000.00

3. Indigenous Learning exchange program

Package Learning exchanges among indigenous communities participated by indigenous representatives (covering costs for Indigenous representatives stipend, travel & per diem)

Training 30 learning exchange visits $ 800.00 $ 24,000.00

4. Capacity building of indigenous women

Training package 2 for facilitators (1 week operational and

technical livelihoods training) Training 18 facilitators $ 500.00 $ 9,000.00

Package Training on Indigenous Women and Decision Making Process Conducted (covering costs for Indigenous Communities stipend, travel & per diem)

Training 2 times $ 12,500.00 $ 25,000.00

Package Workshop Trainings on Indigenous Women and Decision Making Process Conducted (covering costs for Indigenous Communities stipend, travel & per diem)

Training 7 Local Community $ 6,000.00 $ 42,000.00

SUBTOTAL COMPONENT 2: $ 578,800.00

3. COMPONENT: Forest Resource and Cultural-based Income Generating Activities

1. Assessments of IPs’ non-timber forest and cultural-based resources for Income generation activities

Preparatory steps to identify participating indigenous communities (covering costs of facilitators stipend, travel & per diem)

Training 10 10 field visit/package $ 2,250.00 $ 22,500.00

2. Development of community enterprises

House Outlet developed Operational Expenses

3 3 years and rent 1 galery, household

$ 27,000.00 $ 81,000.00

Design Outlet Services IF 1 Designer, $ 3,000.00 $ 3,000.00

House Outlet developed (household) Goods shopping 1 package, Household for gallery

$ 7,500.00 $ 7,500.00

3. Indigenous enterprise financing

Facilitator fees Services 36 months (36 mo. X 1 facilitator)

$ 500.00 $ 18,000.00

Facilitator travel Services 30 field trips (30 visits. x facilitator over 3 yrs.)

$ 500.00 $ 15,000.00

Capital: indigenous entrepreneurs established Small Grants SG 13 est. no. of community livelihood grants

$ 31,000.00 $ 403,000.00

4. Ensuring Facilitation of access to market

Package e-commerce and exhibitions Training 3 3 times/3 years $ 5,000.00 $ 15,000.00

5. Financial Support for Indigenous Women Groups Training 20 indigenous women groups

$ 3,500.00 $ 70,000.00

SUBTOTAL COMPONENT 3: $ 635,000.00

4. COMPONENT: Administration, Project Management, Monitoring and Evaluation, and Knowledge Dissemination

4.1. Administration Cost

Administative Staff Time

Project Director Services IF 36 month $ 850.00 $ 30,600.00

Project Manager Services IF 36 month $ 730.00 $ 26,280.00

Accountant Officer Services IF 36 month $ 462.00 $ 16,632.00

Financial Officer Services IF 36 month $ 420.00 $ 15,120.00

Administration Officer Services IF 36 month $ 420.00 $ 15,120.00

Project Executant Services IF 36 month (3 Project Officers x 36 month)

$ 2,016.00 $ 72,576.00

Operational Cost

Operating Materials and supplies Operational Expenses

1 pack for 3 years suplies $ 7,200.00 $ 7,200.00

Office Rent Operational Expenses

36 month $ 1,000.00 $ 36,000.00

Communication (Internet, telepon, etc) Operational Expenses

36 month $ 450.00 $ 16,200.00

Transportation for Coordination Operational Expenses

36 month $ 100.00 $ 3,600.00

Vehicles Operational Expenses

36 rent Car/month for operational

$ 700.00 $ 25,200.00

Goods

Office Equipments (desks, chairs, bookshelf etc) Goods shoping 1 pack $ 5,000.00 $ 5,000.00

Computers etc Goods shoping 5 set $ 1,200.00 $ 6,000.00

SUBTOTAL COMPONENT 4.1:

$ 275,528.00 9.6%

4.2. Monitoring and Evaluation

Annual Monitoring Evaluation Meeting Training 2 time/year $ 6,500.00 $ 13,000.00

Mid-Year Monitoring Evaluation Meeting Training 6 2 times/year $ 5,000.00 $ 30,000.00

Consultant Services for Audits Services LCS/FQS 3 annual audits/year $ 10,000.00 $ 30,000.00

External Evaluators Services IF 60 days $ 202.77 $ 12,166.00

SUBTOTAL COMPONENT 4.2: $ 85,166.00

SUBTOTAL COMPONENT 4:

$ 360,694.00

TOTAL RECIPIENT-EXECUTED GRANT AMOUNT: $ 2,857,142.88

TOTAL INCREMENTAL BANK SUPERVISION COSTS: $ 142,857.12 5.0%

TOTAL GRANT REQUESTED: $ 3,000,000.00

SUMMARY TABLE BY COMPONENT AND EXPENDITURE CATEGORY Percentage of total cost

Component 1

Goods 45,000

Services 0

Training 1,237,649

Civil Works 0

Operational Expenses 0

Small Grants 0

Sum of expenditures 1,282,649 44.9%

Component 2

Goods 0

Services 0

Training 578,800

Civil Works 0

Operational Expenses 0

Small Grants 0

Sum of expenditures 578,800 20.3%

Component 3

Goods 7,500

Services 36,000

Training 107,500

Civil Works 0

Operational Expenses 81,000

Small Grants 403,000

Sum of expenditures 635,000 22.2%

Component 4

Goods 11,000

Services 218,494

Training 43,000

Civil Works 0

Operational Expenses 88,200

Small Grants

Sum of expenditures 360,694 12.6%

Total for All Receipient-executed Components (1+2+3+4)

Goods 63,500 2.2%

Services 254,494 8.9%

Training 1,966,949 68.8%

Civil works

0.0%

Operating Costs 169,200 5.9%

Small Grants 403,000 14.1%

TOTAL RECIPIENT-EXECUTED COSTS 2,857,143

100.0%

Incremental Bank Costs 142,857 5.0%

TOTAL GRANT AMOUNT 3,000,000

Footnotes:

1 Procurement Methods

IF: Individual Facilitator

FQS: Facilitator Qualification-based Selection

LCS: Least Cost Selection

Shopping: Goods

Small Grant SG

2 Training Packages: these include costs of participant travel, accommodation, meals, equipment and facility rental, administrative support and training materials unless otherwise indicated as separate

expenditures. Costs vary significantly depending on location of trainings (in remote communities, in district, provincial or national capitals)

3 Local Service Providers: this may include district and local officials and extension agents, community facilitators and other community based service providers to be identified in the operations manual