The World Bank RESTRUCTURING ISDS
Institutional Strengthening for Improved Village Service Delivery (P165543)
Integrated Safeguards Data Sheet
Restructuring Stage
Restructuring Stage | Date ISDS Prepared/Updated: 06-Jul-2020| Report No: ISDSR30058
Regional Vice President: Manuela V. Ferro
Country Director: Satu Kristiina Jyrintytar Kahkonen
Regional Director: Benoit Bosquet
Practice Manager/Manager: Janamejay Singh
Task Team Leader(s): Anna Charlotte O'Donnell, Bambang Soetono
The World Bank RESTRUCTURING ISDS
Institutional Strengthening for Improved Village Service Delivery (P165543)
Note to Task Teams: The following sections are system generated and can only be edited online in the Portal.
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I. BASIC INFORMATION
1. BASIC PROJECT DATA
Project ID Project Name
Institutional Strengthening for Improved Village Service
P165543
Delivery
Task Team Leader(s) Country
Anna Charlotte O'Donnell, Bambang Soetono Indonesia
Approval Date Environmental Category
26-Jun-2019 Partial Assessment (B)
Managing Unit
SEAS2
PROJECT FINANCING DATA (US$, Millions)
SUMMARY -NewFin1
Total Project Cost 350.00
Total Financing 350.00
Financing Gap 0.00
DETAILS -NewFinEnh1
World Bank Group Financing
International Bank for Reconstruction and Development (IBRD) 300.00
Non-World Bank Group Financing
Counterpart Funding 50.00
Borrower/Recipient 50.00
2. PROJECT INFORMATION
The World Bank RESTRUCTURING ISDS
Institutional Strengthening for Improved Village Service Delivery (P165543)
PROG_INF O
Current Program Development Objective
To strengthen institutional capacity for improved quality of spending in participating villages.
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3. PROJECT DESCRIPTION
1. In 2014, the Government of Indonesia (GoI) passed the landmark Village Law (Law No. 6 of 2014), significantly
increasing fiscal resources for development and community empowerment in Indonesia’s 74,954 rural villages.
Between 2014 and 2018 annual fiscal transfers to villages increased from approximately IDR 16.8 trillion ($1.2
billion) to IDR 119 trillion ($8.4 billion). The fiscal transfers are large and in 2018 they accounted for approximately
six percent of the national budget, and around 0.5 percent of GDP. On average, a village now receives approximately
IDR 1.6 billion ($113,500) every year, although the amount on a per capita basis varies significantly because the
allocation formula includes a large, fixed allocation and village population sizes vary greatly.1 The new Village Law
also expanded the roles and responsibilities of villages in relation to village administration, infrastructure, basic
service delivery and community empowerment.
2. The central government, as well as provincial and district governments, realize villages require support to
maximize the development impact of the Village Law. Since 2015, the central as well as provincial and district
governments all contribute to financing various programs and systems to improve coordination, village
administration, village development and community empowerment, and accountability. At project appraisal, the
quality of these support systems was assessed to largely be in place, but they were costly, their effectiveness was
mixed, and the efficiency of these systems was low. The four core areas of support included village administration,
village development and community empowerment, inter-village development, and accountability—which are the
responsibility of three main ministries: the Ministry of Home Affairs (MoHA), Ministry of Village, Disadvantaged
Regions and Transmigration (MoV), and the Ministry of Finance (MoF). One overall weakness of the support systems
is that they make little use of new technologies to increase the efficiency and effectiveness of capacity building,
knowledge sharing and accountability. It was also deemed critical that the support systems more systematically help
districts to deliver capacity building and empowerment to villages and community organizations. Key district
government entities involved in implementing the Village Law include: (a) the Department of Community and Village
Empowerment (DPMD), under MoV, which is responsible for village support and supervision at both the provincial
and district levels; (b) the Department of Regional Revenue and Asset Management (DPKAD) which is responsible
for disbursing Dana Desa to villages; (c) the district-level Regional Inspectorate, which is overseen by MoHA; and (d)
the District Development Planning Agency (Bappeda). In addition, at the sub-district level, Technical Advisors for
Village Governments (PTPD) play a coordinating role in village governance and development. One key challenge for
districts is that, while roles and responsibilities vis-à-vis villages have increased with the introduction of the Village
1An average village in Indonesia has around 2,500 people or 500-600 households. However, about one-third of villages have less than 500 people or
100 households (generally in Eastern Indonesia and other more remote locations), and about one-third have more than 5,500 people or 1,000
households.
The World Bank RESTRUCTURING ISDS
Institutional Strengthening for Improved Village Service Delivery (P165543)
Law, districts have not seen a commensurate increase in budget or fiscal transfers to effectively manage these
responsibilities.2 Finally, national coordination of the village support system continues to be weak. Current systems
for national coordination are ad hoc and lack the institutional mandate to effectively enforce decision-making.
3. In 2019, the World Bank approved the Institutional Strengthening for Improved Village Service Delivery project.
The project’s development objective is to “strengthen institutional capacity for improved quality of spending in
participating villages.�? This will be achieved through investments that improve and modernize the Government’s
own systems and institutions that build capacity of village institutions, enhancements to and integration of
information systems, and aligning these with fiscal transfers to focus on performance and results. The project
implementation spans across five ministries. The Ministry of Home Affairs is the Executing Agency, with the Ministry
of Villages, National Planning and Development Agency, Ministry of Finance and Coordinating Ministry of Human
Development as implementing agencies under the project.
Rationale for Restructuring.
4. Since project approval, several factors have contributed to a change in the operating environment of the
country. First, national elections in 2019 led to delays stemming from the establishment of a new government, and
new staff appointments. Second, in March 2020, the COVID-19 pandemic broke out in Indonesia. As a result, the
Government of Indonesia counterparts were occupied with the response to the pandemic, including shifting
priorities towards improving data systems to monitor impacts and recovery; tracking financial flows for village fund
use and especially for new programs; and responding to an emerging economic crisis. This meant that critical actions
to advance the project activities were often delayed, in favor of priority government actions. As the country emerges
from the pandemic, the Government is increasingly looking to the role that villages will play in the economic
recovery.
5. Proposed changes for restructuring. Based on the above-mentioned changes, the Government of Indonesia
requested that the current scope of the project would need to be restructured to (i) modify key activities to more
fully align these with emerging priorities of the Government for Village Law implementation; (ii) update
implementation arrangements, including clarifying coordination, with new institutional arrangements put in place
since 2019; and (iii) drop activities that are no longer priorities for the Government. It was agreed that the Project
Development Objective, “to strengthen institutional capacity for improved quality of spending in selected villages�?
remains relevant and unchanged. The restructuring would not seek any modification to the closing date. The
modification and update in implementation arrangement will not trigger any new safeguard policies. All triggered
OP/BP 4.01 (Environmental Assessment), OP/BP 4.04 (Natural Habitat), OP/BP 4.36 (Forest), OP/BP 4.11 (Physical
Cultural Resources) and OP/BP 4.12 (Involuntary Resettlement) remains relevant to all activities under the modified
Components 1, 2 and 3.
6. Revised Project Scope. Under the restructured Project, the activities under each Components will be:
Component 1: Strengthening Village Government Institutions. The component will continue to support the
Ministry of Home Affairs (MoHA) on the development of a Learning Management System (LMS) for village
2World Bank and MoHA, Study Report: Review of Local Government Capacity to Support Implementation of the Village Law (January 2019); World
Bank, District Village Supervision and Support Expenditure Analysis: Synthesis Note (January 2019).
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Institutional Strengthening for Improved Village Service Delivery (P165543)
governments and the rollout. The component will allow social and environmental standards, awareness, and
responses to the climate change hotspots and impacts on village livelihoods to be mainstreamed in the manuals
and guidelines, as well as training modules for the relevant local government staff. This component would also
provide opportunities to strengthen inclusion and participation of the village communities in planning and
budgeting, and in upgrading and supporting best practice in procurement systems. With the restructuring, the
project has identified the potential to strengthen women’s empowerment training programs through the LMS
by leveraging the national Family Welfare Guidance Program (Pembinaan Kesejahteraan Keluarga, PKK) in
conjunction with relevant NGOs and civil society to develop a program to train and empower women in
planning and budgeting at the village level, and also piloting an approach to improve frontline service delivery
in participating village government (approx. 60 districts).
Component 2: Promoting Participatory Village Development. This component will continue to strengthen
participation and social accountability in village governance systems by leveraging systems of capacity support
within the Ministry of Village (MoV) for facilitators as well as for several other programs that support
community empowerment and village development. These programs will be supported to be more flexible and
adaptable to better respond to needs, and to facilitate innovation and cross-learning for community capacity.
The key change of the project restructuring in this component is to drop the activity related to the Village Digital
Platform (GoDesa), and include: (i) development training modules related to social accountability, community
empowerment and participatory planning and the integration of these modules into the facilitator capacity
building program and training rollout; (ii) development of a digitally enabled Learning Management System to
transition the training program to a platform-based approach starting in 2022; and (iii) development of a digital
marketplace platform, as well as associated technical guidelines and regulations for technical service providers
(Penyedia Peningkatan Kapasitas Teknis/P2KTD).
Component 3: National Coordination, Monitoring and Policy. This component continues to support
improvements and strengthening national coordination and harmonization of regulations, monitoring, and
supervision of village development. Under this restructuring, this component will be adjusted and supported:
(i) strengthening Coordinating Ministry for Human Development and Cultural Affairs (Kementerian Koordinator
Bidang Pembangunan Manusia dan Kebudayaan (Kemenko PMK)’s coordination functions and roles for Village
Law implementation; and (ii) development of a national strategy for the improved implementation of Village
Law. The Government of Indonesia will finance the Integrated Village Data System, and strategic evaluation
and leadership for national policy making.
The previous Component 3 of the project, entitled Village Performance Awards (previously Component 3 as
per project legal agreement) is being dropped from the loan, as the component did not finance any activities.
There will be no further potential indirect impacts related to the possible associated activities that would
warrant further assessment and all triggered safeguard policies is no longer applicable for this component.
Partial Cancellation. The restructuring will include a partial cancellation of the loan proceeds. No changes to
the disbursement arrangements are being sought. An updated financing table is provided below.
The World Bank RESTRUCTURING ISDS
Institutional Strengthening for Improved Village Service Delivery (P165543)
Table 1: Changes to Financing Allocations
Component Original Allocation Revised Allocation
(US$ million) (US$ million)
Component 1 192.5 160.0
Component 2 102.5 85.5
(Dropped component on Village 0.0 -
Performance Awards)
Component 3 5.0 2.5
Total 300.00 248.0
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4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF
KNOWN)
The overall project implementation continues to be delayed as no activities have commenced in the first
two-years of project implementation. The project is expected to target all 74,965 villages in Indonesia, across
380 rural districts in the country with various physical characteristic from coastal and low-land areas to
inland/highland areas. Many villages are in remote and small islands whereby access can be a challenge. The
Project involves four key line ministries, i.e., MoHA, MoV, Bappenas and Kemenko PMK, as well as various
stakeholders at provincial, district, sub- district, and village levels. As the Project is targeted to benefit all
villages in the country, it is anticipated that IPs might presence in some villages, and therefore might be
affected (positive and negative) by the Project. World Bank IPs Screening Study (2010) indicates that
potential IPs presence are geographically distributed in 174 districts (30 provinces) out of about 434 total
districts in the country (list of districts where IPs would be potentially presence is included in the Annex of
the Project’s ESMF). The presence of the IPs needs to be verified and confirmed in the field once the Project
is implemented in the villages, particularly in the 174 districts where IPs presence were initially identified.
The proposed project activities will not involve any physical investment or preparation of any plans that
would lead to the implementation of physical investment or activities involving downstream environmental
and social impacts and risks. However, activities on the establishment or development of e-platform for
digital marketplace and e-learning platform as well as strengthening data base system at the Central Level
(CPMU and Co-CPMU/CPIUs) will involve the management of electronic wastes (e-waste) which are classified
as hazardous waste in Indonesia. The Government has procedures and protocols to dispose any Government
assets (including the IT hardware registered in the CPMU and Co-CPMU/CPIUs’ asset) and hazardous wastes
or equipment that is considered as hazardous, such as IT hardware. The ESMF has included the e-waste
disposal procedures and protocols which was developed based on the Indonesia regulations on hazardous
waste management as well as the WBG Environmental, Health, and Safety (EHS) Guidelines on Hazardous
Materials and Waste Management.
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5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM
Indira Dharmapatni, Social Specialist
Krisnan Pitradjaja Isomartana, Environmental Specialist
Hani Maisarah Binti Mohamad, Environmental Specialist
SAFEGUARD_TABLE
6. SAFEGUARD POLICIES TRIGGERED
Safeguard Policies Triggered Explanation
Under this project restructuring: (i) Component 1
will continue to support a digitally enabled learning
management system, as well as a village data
system; and (ii) Component 2 supports the
development of a digital marketplace for capacity
services and a digital innovation platform for
villages. Anticipated potential environmental
impacts from these investments would be in the
form of electronic waste (e- waste) due to the
expansion of the existing and/or purchase of
information and communication infrastructure
required including hardware, software, design, and
upgrading data centers (Prodeskel and Siskeudes).
Expansion of the existing and/or new installation of
IT hardware would take place in MoHA. E-waste is
anticipated relevant to the disposal of
old/unwanted electronic equipment from the
current system or future disposal of the equipment
Environmental Assessment (OP) (BP 4.01) Yes when they are no longer needed. E- waste is
categorized as hazardous wastes which need
proper disposal management. The Project has
developed a protocol to manage e-waste disposal
as part of the ESMF. The project is no longer
financing the development of a digital platform in
MOV (GoDesa) or an integrated information & data
system (InfoDesa) in Bappenas.
Given the nature of the activities explained in the
Project Description, it is clear that Components 1,
2, and 3 will not involve any direct physical
investment, nor will support the preparation of any
plan that would lead to the implementation of
physical investment or activities involving
downstream environmental and social impacts and
risks. The Project’s funds will not be used, in
anyway, to prepare any village plans, and/or the
design and implementation of subprojects that are
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Institutional Strengthening for Improved Village Service Delivery (P165543)
solely financed by the Government. Having said
this, however, the Project provides an opportunity
to mainstream the objectives, principles and
requirements specified in and consistent with the
OP 4.01 and the EHS Guidelines into the improved
manuals, guidelines, training modules, Terms of
References for the facilitators and monitoring and
supervisory team/unit, and into the awareness
training and improved capacity building delivery of
the village governments. The TORs for the manuals,
guidelines and training modules will be shared to
the Bank’s safeguards specialist for review. For
instance, in identifying natural habitats in the
village planning/manuals/training modules such as
wetland, peatland, forest boundaries and to
preventing them from conversion and degradation.
Also, in identifying climate change impacts and
identifying opportunities for mitigation and
improved resilience at village level in accordance
with the SDGs goal 13 and 14 that have been
implemented in the existing climate resilience
village program. If relevant, to consider also
incremental and cumulative impacts from ongoing
development planning at the village level and their
environmental and social implications, in improving
stakeholder engagements, inclusion of vulnerable
groups and gender as well as complaint handling
system. Component 1, 2, 3 triggers OP 4.01 as the
mainstreaming will be consistent with this policy’s
objectives, principles, and requirements.
Government counterpart contribution in the form
of expected budget allocations during the Project
period will contribute to the village development
and capacity building activities, estimated partial
costs for facilitators staff, management costs, and
incremental operating costs for the continued
implementation of village development activities.
These activities will adopt the improved manuals,
guidelines, training modules, Terms of References
for the facilitators and monitoring and supervisory
team/unit, and improved awareness training and
improved capacity building delivery of the village
governments that have mainstreamed the
objectives, principles and requirements specified in
and consistent with the OP 4.01 and the EHS
Guidelines as explained above. Allocated
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Government budget will ensure that overall Project
management, training for village governments,
facilitators, PTPD at the sub-district level,
monitoring and supervision by the Project
apparatus at all levels, development of integrated
information management system, etc., will take
place using the improved manuals, guidelines,
training modules etc. In conclusion, the Project
provides an upstream intervention through the
above-mentioned mainstreaming to ensure that
overall village law implementation will be
consistent with the objectives, principles and
requirements specified in the OP 4.01.
The previous Component on Village Performance
Awards will be dropped from the loan and there will
be no further potential indirect impacts related to
the possible associated activities that would
warrant further assessment.
Performance Standards for Private Sector The Project is not supporting private sector
No
Activities OP/BP 4.03 activities as defined under the policy.
The Project will not finance activities that involve
significant conversion or degradation of critical
natural habitats or natural habitats. The Project
provides an opportunity to mainstream the
objectives, principles and requirements specified in
and consistent with OP 4.04 into the improved
manuals, guidelines, training modules, Terms of
References for the facilitators and monitoring and
supervisory team/unit, and into the awareness
training and improved capacity building delivery of
the village governments. Mainstreaming covers, for
Natural Habitats (OP) (BP 4.04) Yes instance, in identifying potential natural habitats
presence in the villages such as wetland, peatland,
forest boundaries and developing a system in
preventing natural habitats from conversion and
degradation. Component 1, 2, 3 triggers OP 4.04 as
the mainstreaming will be consistent with this
policy’s objectives, principles, and requirements.
The previous Component on Village Performance
Awards will be dropped from the loan, so potential
risks to natural habitat from the performance grant
proceeds at village level no longer exist.
The Project will not finance activities that involve
Forests (OP) (BP 4.36) Yes conversion or degradation of critical forest areas or
natural forests as defined under the policy. The
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Institutional Strengthening for Improved Village Service Delivery (P165543)
Project is not intended for commercial plantation
and there is no Project component to improve the
forest function. Improved system supported by the
Project under Components 1, 2, and 3 will take into
considerations the objectives, principles and
requirements of critical forest areas and natural
forest. The Project provides an opportunity to
mainstream the objectives, principles and
requirements specified in and consistent with OP
4.36 into the improved manuals, guidelines,
training modules, Terms of References for the
facilitators and monitoring and supervisory
team/unit, and into the awareness training and
improved capacity building delivery of the village
governments. Mainstreaming covers, for instance,
in identifying of forest types and boundaries and its
functions. Component 1, 2, and 3 trigger OP 4.36 as
the mainstreaming will be consistent with this
policy’s objectives, principles, and requirements.
The previous Component on Village Performance
Awards will be dropped from the loan,
consequently the potential risks to deforestation or
significant degradation or conversion to forest from
the performance grant proceeds at village level no
longer exist.
The Project will not procure or use any pesticide or
support activities that may lead to the use and/or a
Pest Management (OP 4.09) No
significant increase in the use of pesticide. The
negative list will include this provision
The Project will not affect or involve any physical
cultural resources. The Project will not finance any
sub-project that affects or involves physical cultural
resources.
The Project provides an opportunity to mainstream
the objectives, principles and requirements
specified in and consistent with OP 4.11 into the
Physical Cultural Resources (OP) (BP 4.11) Yes
improved manuals, guidelines, training modules,
Terms of References for the facilitators and
monitoring and supervisory team/unit, and into the
awareness training and improved capacity building
delivery of the village governments. Mainstreaming
covers, for instance, in identifying potential
physical cultural resources in the village.
Component 1, 2, 3 triggers OP 4.11 as the
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mainstreaming consistent with the policy’s
objectives, principles, and requirements.
The previous Component on Village Performance
Awards will be dropped from the loan. hence this
Policy is no longer applicable for this component.
The Project covers all villages nation-wide,
therefore, it is expected that some villages would
have potential IPs presence, affected and/or
benefit from the Project. The Project provides an
opportunity to mainstream the objectives,
principles and requirements specified in and
consistent with OP 4.10 into the improved manuals,
guidelines, training modules, Terms of References
for the facilitators and monitoring and supervisory
team/ unit, and into the awareness training and
improved capacity building delivery of the village
governments. An IPPF has been prepared in the
ESMF, the objectives, principles and requirements
specified in the IPPF will be included in the
mainstreaming activities under Component 1, 2,
and 3.
Special attention will also be given for IPs
community under OP 4.10. Social sustainability for
Components 1, 2 and 3 will also include measures
Indigenous Peoples (OP) (BP 4.10) Yes
to enhance the inclusion of benefits to IPs and the
delivery of culturally appropriate benefits through
the strengthening of the existing systems and tools
(for instance, concerning training, capacity
building, knowledge management, regulations, and
M&E). The Project will consider include a more pro-
active approach to IPs inclusion and development
benefits through a more pro-active targeting of IPs
communities, additional supports (TA/PD) in areas
with IPs, a broader menu of eligible investments for
IPs, monitoring and evaluation of IPs participation
and benefits during project implementation.
Results of Project monitoring and evaluation will be
used to improve the capacity building delivery
(such as for the PDs and village apparatus) and/or
manuals tailored to the needs to increase IPs
participation and benefits.
The previous Component on Village Performance
Awards will be dropped from the loan. Hence this
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Institutional Strengthening for Improved Village Service Delivery (P165543)
Policy (OP 4.10) is no longer applicable for this
component.
Components 1, 2, and 3 involve strengthening
government systems related to supporting Village
Law implementation. Components 1 and 2 involve
establishment of a digitalized, IT-based tools,
development of e-platform and e-services for
learning, capacity building, marketplace for
capacity services, knowledge management,
harmonization, and simplification of manuals,
oversight and monitoring and integrated
information and data-system management as well
as establishment of internet-based, demand-driven
marketplace for the village. Given the nature of the
activities described under Components 1, 2, and 3
will not involve any direct physical investment, nor
will support the preparation of any plan that would
lead to the implementation of physical investment
or activities involving downstream environmental
and social impacts and risks. In other words, funds
from these three components will not be used, in
anyway, to prepare any village plans.
Involuntary Resettlement (OP) (BP 4.12) Yes
The Project provides an opportunity to mainstream
the objectives, principles and requirements
specified in and consistent with OP 4.12 into the
improved manuals, guidelines, training modules,
Terms of References’ for the facilitators and
monitoring and supervisory team/ unit, and into
the awareness training and improved capacity
building delivery of the village governments, for
instance, in identifying potential needs of land,
developing measures to avoid or minimize land
acquisition, in improving stakeholder
engagements, inclusion of vulnerable groups and
gender as well as complaint handling system.
Component 1, 2, 3 triggers OP 4.12 as the
mainstreaming will be consistent with the policy’s
objectives, principles, and requirements.
The previous Component on Village Performance
Awards) will be dropped from the loan; hence this
Policy (OP 4.12) is no longer applicable for this
component.
The project will not finance construction and/or
Safety of Dams (OP) (BP 4.37) No
rehabilitation of dam.
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Projects on International Waterways (OP) The project will not be located in the watersheds of
No
(BP 7.50) any international waterways.
The project is not located in any known disputed
Projects in Disputed Areas (OP) (BP 7.60) No
areas as defined under the policy.
KEY_POLICY_TABLE
II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT
A. SUMMARY OF KEY SAFEGUARD ISSUES
1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any
potential large scale, significant and/or irreversible impacts.
Given the nature of the activities explained above, Components 1, 2, and 3 will not involve any physical investment
or preparation of any plans that would lead to the implementation of physical investment or activities involving
downstream environmental and social impacts and risks. Project activities under Components 1, 2, and 3 involve
strengthening the existing data system for oversight and monitoring, development of e-platform and e-services for
learning, capacity building, marketplace for capacity services, knowledge management, harmonization and
simplification of regulations, oversight and monitoring, and establishment of national coordination platform.
Anticipated potential environmental impacts would be in the form of electronic waste (e-waste) due to the expansion
of the existing and/or purchase of information and communication infrastructure required including hardware,
software, design, and upgrading data centers. Expansion of the existing and/or new installation of IT hardware would
take place in the CPMU and CPIUs. The Project has developed a protocol to manage e-waste disposal to manage its
potential impacts as part of the ESMF.
The Project provides an opportunity to mainstream objectives, principles and requirements specified in and
consistent with the triggered policies (OP 4.01, OP 4.04, OP 4.36, OP 4.11, OP 4.10 and OP 4.12) and EHS Guidelines
into the improved manuals, guidelines, training modules, Terms of References for the facilitators and monitoring and
supervisory team/unit, and into the awareness training and improved capacity building delivery of the village
governments. Examples of specific strengthening areas are aspects of climate-resilient village adaptation,
environmentally friendly agricultural practices, as well as items described in the explanation of OPs above, to support
the existing government program to meet the Sustainable Development Goals (SDG) 13 and 14 in establishing the
climate resilience village-program. It is expected that from the improved capacity building and institutional
strengthening system, the village governments will have a better capacity to prepare various village plans (such as
RPJMDes, RKPDes, APBDes) in response to local conditions and village community needs, and that promote efficient
and effective spending and ESS friendly, despite the fact that the Project will not finance, in any way, the preparation
of any village plans.
Government counterpart contribution in the form of expected budget allocations during the Project period will
contribute to the village development and capacity building activities, estimated partial costs for facilitators staff,
management costs, and incremental operating costs for the continued implementation of village development
activities. These activities will adopt the improved manuals, guidelines, training modules, Terms of References for the
facilitators and monitoring and supervisory team/unit, and improved awareness training and improved capacity
building delivery of the village governments that have mainstreamed the objectives, principles and requirements
specified in and consistent with the OP 4.01 and the EHS Guidelines as explained above. Allocated Government budget
will ensure that overall Project management, training for village governments, facilitators, PTPD at the sub-district
level, monitoring and supervision by the Project apparatus at all levels, development of integrated information
management system, etc., will take place using the improved manuals, guidelines, training modules etc. In conclusion,
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Institutional Strengthening for Improved Village Service Delivery (P165543)
the Project provides an upstream intervention through the above-mentioned mainstreaming to ensure that overall
village law implementation will be consistent with the objectives, principles and requirements specified in the OP
4.01. Similar principle also applies for the other triggered policies below (OP 4.04, OP 4.36, OP 4.11, OP 4.10 and OP
4.12).
2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area.
The Project does not envision potential indirect and/or long-term impacts. However, anticipation was made
particularly on e-waste disposal. CPMU and CPIUs need to be educated and made aware of about the danger of this
particular waste and it should be disposed properly in the dropping point facilitated by the Government/local
government, or licensed third-party agencies. The previous Component on Village Performance Awards will be
dropped from the loan and there will be no further potential indirect impacts related to the possible associated
activities that would warrant further assessment.
3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts.
N/A
4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower
capacity to plan and implement the measures described.
The Project has developed an Environmental and Social Management Framework (ESMF) in 2019 to mainstream the
objectives, principles, and requirements of the environmental and social safeguards to strengthen the activities under
Component 1, 2, and 3, and the previous component on Village Performance Awards. The original ESMF has been
updated to reflect the changes due to Project restructuring. The tools in the annex such as screening tools, UKL UPL
format etc., can still be used to mainstream these aspects into component 1,2 and 3 activities. There will be no
additional environmental and social impacts and E&S objectives, principles, and requirements that need to be
mainstreamed in the Project due to the proposed restructuring. Thus, the objectives, principles and requirements as
specified in the ESMF remain consistent with the triggered OPs which will be continuously integrated in the activities
under Components 1, 2, and 3. The lead implementing agencies, MoHA as CPMU and MoV as Co-CPMU play the main
roles in mainstreaming the E&S, and both agencies have involved in the PNPM Rural project and understand the
importance of environmental and social sustainability aspects in the implementation of project as well as in broader
term of the implementation of Village Law. In addition, in 2012, MoHA as CPMU has experienced in safeguard
implementation by establishing environmental and social practical guidance book for National Program for
Independent Community Empowerment (Program Nasional Pemberdayaan Masyarakat Mandiri/PNPM). Also,
several capacity building activities such as facilitator strengthening were conducted during the PNPM project.
Under the current system, safeguard implementation arrangement at the district level is the responsibility of the
Local Environmental Agency for environment and Local Planning Agency for coordinating the social aspect. Whereas
the “Dinas Pemberdayaan Masyarakat dan Desa�? (Local Agency on Community and Village Empowerment) is
responsible for supporting and supervising the villages including development and the environmental and social
aspects. At the village level, the Section of Governance under the Head of the village is responsible for overseeing and
managing environmental and social issues. These institutions manage environmental and social aspects in accordance
with the Government Laws and Regulations. It is expected that future performance in managing environmental and
social issues would be improved through the capacity strengthening with the guidelines and training modules that
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Institutional Strengthening for Improved Village Service Delivery (P165543)
have mainstreamed the objectives, principles and requirements as specified in the ESMF. The roles of village
facilitators in making this happen will be key to strengthen the management of environmental and social issues at the
village level.
Currently, the Project is experiencing delays in the implementation of several activities, including the development
the learning management system and guidelines and training modules under Component 1. Post restructuring, the
MoHA, as CPMU, will accelerate the recruitment of E&S Specialist, which has been delayed due to the procurement
of National Management Consultant (NMC) package. The main tasks of the consultant will include: (a) developing the
guidelines for E&S management, (b) developing training modules on E&S and delivering training for P3PD staff, local
governments, local consultants, and facilitators, and (c) ensuring the inclusion of E&S aspects in the management
information system. The Project will continue to include and mainstream the E&S objectives, principles and
requirements specified in the triggered OPs as reflected in the ESMF in Component 1, 2, and 3. The updated ESMF
covers principles, procedures, requirements, and organizational arrangements for managing environmental and
social impacts and risks, strategy for capacity building to implement the ESMF, GRM, disclosures, results of ESMF’s
public consultations, monitoring and budget. An e-waste disposal protocol has been developed and included in the
ESMF.
The draft updated ESMF has been virtually consulted with all project management staff and PIUs consultants on
March 24, 2022. It was confirmed that the objectives, principles, and requirements of the triggered environmental
and social safeguard policies updated ESMF remain relevant to the modified activities under Component 1,2 and 3
and will continue to be mainstreamed in the Project guidelines, manuals and training modules for the respective local
government staff and facilitators.
During Project implementation, the MoHA and MoV are expected to carry out awareness environmental and social
sustainability ESS) training for its management staff, i.e., CPIUs at national, provincial and district levels, as well as
for the TAPMD (esp. TA-ID), PTPD, officials of DPMD, and District Inspectorate (new), provincial satker, and technical
training for village facilitators and local village facilitators. In addition to training provided to the PTPD and PD as well
as to the village apparatus with modules and training delivery that have mainstreamed the ESS particularly the
objectives, principles and requirements of the triggered OPs, the Project needs to (1) include E&S aspects in the digital
platform/tools developed by the implementing agencies; (2) strengthen the monitoring and supervision activities by
including monitoring indicators representing the inclusion of ESS sustainability; (3) include the district environmental
agency (DEA) to provide awareness and capacity training to the district inspectorate, PTPD (at the sub-district level)
on the ESS; and (4) include the ESS sustainability aspects in the monitoring and supervision activities to villages carried
out by the PTPD.
5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with
an emphasis on potentially affected people.
Key Project’s stakeholders involved in the mainstreaming the environmental and social sustainability (ESS) aspects
especially the objectives, principles, and requirements of the triggered OPs in the capacity building and institutional
strengthening of the Village Law implementation are CPMU/Co-CPMU/CPIUs of the MoHA, MoV, Bappenas and
Kemenko PMK; provincial PIUs, district PIUs, sub-districts and village administration and community. Other
stakeholders include the regional experts (Tenaga Ahli), village facilitators, and local village facilitators hired by the
MoV as well as village communities.
The Project carried out public consultations for the original ESMF on 14-15 January 2019 attended by all key line
ministries mentioned above. As the nature of the Village Law implementation is community-based at the village level,
the mainstreamed ESS aspects particularly the objectives, principles and requirements of the triggered OPs in various
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Institutional Strengthening for Improved Village Service Delivery (P165543)
manuals and training materials for the village facilitators, local village facilitators and village apparatus will be
adopted by them during the preparation and implementation of the RPJMDes (village mid-term plan), RKPDes (village
annual plan), APBDes (village annual budget) and activity plan. The manuals which have mainstreamed the ESS
aspects particularly the objectives, principles and requirements of the triggered OPs will be used as references during
the consultations with the villagers in preparing and implementing such plans. As part of the Project restructuring,
the ESMF has been updated and consulted with all project management staff including PIUs consultants on March
24, 2022. The updated ESMF will be disclosed in MOHA and MOV’s websites, as well as in the World Bank website.
On Grievance Redress Mechanism (GRM), the project use the existing complaint handling venue of SP4N LAPOR!, a
national complaint handling system managed by the MenPANRB which is connected with 34 ministries, 96 central
agencies and 493 local governments in the country. The system is active and publicly accessible through
http://kemendagri.lapor.go.id/. The Project is planning to utilize the current complaint handling venue and moving
forward the CPMU (MoHA) plans to (i) assign a dedicated staff (with support from consultant under NMC) to manage
complaints related to the P3PD; (ii) develop the Standard Operation Procedure (SOP) that sets clear procedures and
mechanisms on complaint handling; and (iii) hire a complaint handling specialist in the NMC to support the Project’s
complaint handling management. It is expected that with the Project restructuring, CPMU can accelerate the
procurement of the NMC package within which a complain handling specialist will be made available. At the village
level, Permendagri No. 114/2014 stipulated that the village should have a complaint handling management system.
The head of the village is responsible for managing and processing, as well as in following-up the complaints, and in
documenting the complaints as well. This complaint handling management system will benefit the planning process
that includes the ESS aspects.
DISCLOSURE_TABLE
B. DISCLOSURE REQUIREMENTS
ENV_TABLE
Environmental Assessment/Audit/Management Plan/Other
Date of receipt by the Bank Date of submission for disclosure
24-Mar-2022 29-Apr-2022
For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors
“In country�? Disclosure
Country Date of Disclosure
Indonesia 09-May-2022
Comments
RESETTLE_TABLE
Resettlement Action Plan/Framework Policy Process
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Institutional Strengthening for Improved Village Service Delivery (P165543)
Date of receipt by the Bank Date of submission for disclosure
24-Mar-2022 29-Apr-2022
“In country�? Disclosure
Country Date of Disclosure
Indonesia 09-May-2022
Comments
INDIG ENOUS_TAB LE
Indigenous Peoples Development Plan/Framework
Date of receipt by the Bank Date of submission for disclosure
24-Mar-2022 29-Apr-2022
“In country�? Disclosure
Country Date of Disclosure
Indonesia 09-May-2022
Comments
COMPLIANCE_TABLE
C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL
EA_TABLE
OP/BP/GP 4.01 - Environment Assessment
Does the project require a stand-alone EA (including EMP) report? Yes
If yes, then did the Regional Environment Unit or Practice Manager (PM) review
Yes
and approve the EA report?
Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes
NH_TABLE
OP/BP 4.04 - Natural Habitats
Would the project result in any significant conversion or degradation of critical
Yes
natural habitats?
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Institutional Strengthening for Improved Village Service Delivery (P165543)
If the project would result in significant conversion or degradation of other (non-
critical) natural habitats, does the project include mitigation measures Yes
acceptable to the Bank?
PCR_TABLE
OP/BP 4.11 - Physical Cultural Resources
Does the EA include adequate measures related to cultural property? Yes
Does the credit/loan incorporate mechanisms to mitigate the potential adverse
Yes
impacts on cultural property?
IP_TABLE
OP/BP 4.10 - Indigenous Peoples
Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate)
Yes
been prepared in consultation with affected Indigenous Peoples?
If yes, then did the Regional unit responsible for safeguards or Practice Manager
Yes
review the plan?
If the whole project is designed to benefit IP, has the design been reviewed and
NA
approved by the Regional Social Development Unit or Practice Manager?
IR_TABLE
OP/BP 4.12 - Involuntary Resettlement
Has a resettlement plan/abbreviated plan/policy framework/process framework
NA
(as appropriate) been prepared?
If yes, then did the Regional unit responsible for safeguards or Practice Manager
NA
review the plan?
FO_TABLE
OP/BP 4.36 - Forests
Has the sector-wide analysis of policy and institutional issues and constraints
NA
been carried out?
Does the project design include satisfactory measures to overcome these
Yes
constraints?
Does the project finance commercial harvesting, and if so, does it include
No
provisions for certification system?
PDI_TABLE
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Institutional Strengthening for Improved Village Service Delivery (P165543)
The World Bank Policy on Disclosure of Information
Have relevant safeguard policies documents been sent to the World Bank for
Yes
disclosure?
Have relevant documents been disclosed in-country in a public place in a form
and language that are understandable and accessible to project-affected groups Yes
and local NGOs?
ALL_TABLE
All Safeguard Policies
Have satisfactory calendar, budget and clear institutional responsibilities been
Yes
prepared for the implementation of measures related to safeguard policies?
Have costs related to safeguard policy measures been included in the project
Yes
cost?
Does the Monitoring and Evaluation system of the project include the monitoring
Yes
of safeguard impacts and measures related to safeguard policies?
Have satisfactory implementation arrangements been agreed with the borrower
Yes
and the same been adequately reflected in the project legal documents?
III. APPROVALS
Anna Charlotte O'Donnell
Task Team Leader(s)
Bambang Soetono
Approved By
Safeguards Advisor Ekaterina Romanova 17-Jun-2022
Practice Manager/Manager Janamejay Singh 19-Jun-2022
.
Note to Task Teams: End of system generated content