Lahendong Units 5 & 6 Supplemental ESIA - : Non-Technical Summary December 2014 Pertamina Geothermal Energy

Lahendong Units 5 & 6
Supplemental ESIA –
Volume I
Non-Technical Summary
December 2014
Pertamina Geothermal Energy

Lahendong Units 5 & 6
Supplemental ESIA –
Volume I
314049 TRD EFR 001 C
314049_Lahendong_NTS_RevC.docx
December 2014
Lahendong Units 5 & 6 Supplemental ESIA – Volume I
December 2014
Pertamina Geothermal Energy
Menara Cakrawala 15th floor, Jalan MH. Thamrin No. 09 - Jakarta 10340,
Indonesia
Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom
T +44 (0)1273 365 000 F +44(0) 1273 365 100 W www.mottmac.com
Issue and revision record
Revision Date Originator Checker Approver Description Standard
A 08/09/ 2014 Shalini Arora Ian Scott Ian Scott 1st Draft
Shalini Arora &

B 08/10/2014 Ian Scott Ian Scott 2nd Draft, for disclosure
Various
C 05/12/2014 Shalini Arora Ian Scott Ian Scott Final
This document is issued for the party which commissioned it and We accept no responsibility for the consequences of this
for specific purposes connected with the above-captioned project document being relied upon by any other party, or being used
only. It should not be relied upon by any other party or used for for any other purpose, or containing any error or omission
any other purpose. which is due to an error or omission in data supplied to us by
other parties.
This document contains confidential information and proprietary

intellectual property. It should not be shown to other parties
without consent from us and from the party which
commissioned it..
314049/TRD/EFR/001/C December 2014

Contents
Section Title Page
Glossary i
1 Introduction 1
1.1 Overview _________________________________________________________________________ 1
1.2 The Project developer _______________________________________________________________ 2
1.3 Opportunity to comment on the Project __________________________________________________ 2
1.4 What are the key ESIA documents related to the Project? ____________________________________ 3
2 The Project 5
2.1 The need for the Project ______________________________________________________________ 5
2.2 Project definition ____________________________________________________________________ 5
2.3 Schedule ________________________________________________________________________ 12
2.4 Selection of Project site and technology _________________________________________________ 12
3 Managing Environmental and Social Impacts 14

3.1 Assessing the Project _______________________________________________________________ 14
3.2 Environmental and social impacts _____________________________________________________ 15
3.3 Cumulative impacts ________________________________________________________________ 32
3.4 PGE’s management of environmental and social impacts ___________________________________ 32
4 Summary 34
Figures
Figure 2.1: Geothermal Power Plant Process Summary ______________________________________________ 6
Figure 2.2: Project Location in relation to North Sulawesi _____________________________________________ 7
Figure 2.3: Main Project Components as assessed in the Original ESIA __________________________________ 8
Figure 2.4: Project Component Scope (Supplemental ESIA) __________________________________________ 11
Tables
Table 3.1: Summary of significant surface water impacts and mitigation measures ________________________ 16
Table 3.2: Summary of significant groundwater impacts and mitigation measures _________________________ 19
Table 3.3: Summary of significant noise impacts and mitigation measures ______________________________ 20
Table 3.4: Summary of significant ecology impacts and mitigation measures _____________________________ 21
Table 3.5: Summary of significant air quality impacts and mitigation measures ___________________________ 24
Table 3.6: Summary of significant climate change impacts and mitigation measures _______________________ 25
Table 3.7: Summary of significant waste management impacts and mitigation measures ___________________ 25
Table 3.8: Summary of significant geology and erosion impacts and mitigation measures ___________________ 26
Table 3.9: Summary of significant land contamination impacts and mitigation measures ____________________ 26
Table 3.10: Summary of significant traffic impacts and mitigation measures ______________________________ 28
Table 3.11: Summary of significant social impacts and mitigation measures ______________________________ 29


Glossary
AIDS Acquired Immune Deficiency Syndrome

AMDAL Environmental Impact Assessment
ANDAL ESIA Report
BAL Basic Agrarian Law
BAPEDAL Environmental Impact Management Agency (or EIMA)
BAPEDALDA Regional Environmental Impact Management Agency
BKSDA Local Wildlife Protection Office
BLH Environment Agency at Provincial and Regency Levels
BOD Biochemical Oxygen Demand
BPLH Environmental Management Agency
CAS Chemical Abstracts Service
CBD Convention on Biological Diversity
CHS Community Health & Safety
CITES Convention on International Trade of Endangered Species of Wild Fauna
and Flora
CLO Community Liaison Officer
CMS Conservation of Migratory Species of Animal Wildlife
COD Chemical Oxygen Demand
EA Environmental Assessment
EHS Environmental, Health and Safety
EIMA Environmental Impact Management Agency (or BAPEDAL)
EMA Environmental Management Act
EPCC Engineering, Procurement, Construction and Commissioning (EPCC also
known as PDSI)
ESIA Environmental and Social Impact Assessment
ESMP Environmental and Social Management Plan
GDP Gross Domestic Product
HGV Heavy Good Vehicles
HIV Human Immunodeficiency Virus
HKm Hutan Kemasyarakatan (Community Forest)
HSE Health, Safety and Environment
IFC International Finance Corporations
ILO International Labour Organisation
IPPKH Ijin Pinjam Pakai Kawasan Hutan (Borrow-Use Permit of Forestry Area)
IUCN International Union for Conservation of Nature
IUP Mining Activity Permit
IUPL Electricity Supply Business Permit
JAMSOSTEK Social Security System
JICA Japanese International Cooperation Agency
KA-ANDAL Terms of Reference of ESIA Report
KLH Kementarian Lingkungan Hidup (Ministry of Environment)
KK Kementarian Kehutanan (Ministry of Forestry)
KSPSI Confederation of All Indonesian Workers' Union
LU Land Use
MDG Millennium Development Goal

i 314049_Lahendong_NTS_RevC.docx
MENKES Decree of. Minister of Health Regulation

MENLH Ministry of Environment
MKLH Decree of Ministry of Environment
MML Mott MacDonald Limited
MPN Most probable number
MT Magneto-telluric
MW Mega Watt
NA Not Available or Applicable
NCG Non Condensable Gas
ND Not Detected
NER Net Enrolment Rate
NGOs Non-governmental Organisations
NJOP Nilai Jual Objek Pajak (Sales Value of the Tax Object)
NW North West
OHS Occupational Health & Safety
OP Indigenous Peoples
OP Operational Policy
PCDP Public Consultation and Disclosure Plan
PDSI Plant Design, Supply and Installation (also known as EPCC)
PE Decree of Ministry of Mines and Energy
Persero Corporation managed by the State or Region
PGE Pertamina Geothermal Energy
PKK Pemberdayaan dan Kesejahteraan Keluarga (Empowerment and Family
Welfare / Women’s Group)
PLN Indonesian State Electricity Company
PLTP Thermal Power Plants
PNOC Philippines National Oil Company
Posyandu Pos Pelayanan Terpadu (Integrated Service Post for Mothers’ and
Children’s healthcare)
PP Government Regulations
PPE Personal Protective Equipment
PT Company Limited
Puskesmas Pusat Kesehatan Masyarakat (Society Health Centre)
RAMSAR Convention on Wetlands
RI Republic of Indonesia
RKL Environmental Management Plan
RPL Environmental Monitoring Plan
RUKN Local Electricity Plan
SAGS Steamfield Above Ground System
SCR Selective Catalytic Reduction
SE South East
SEP Stakeholder Engagement Plan
SPPGE Serikat Perkerja Pertamina Geothermal Energy
SMK3LL HSE System Management
SW South West

ii 314049_Lahendong_NTS_RevC.docx
TEM Transient Electro-Magnetic

TSS Total Suspended Solids
TWA Time Weighted Average
UBL Ulubelu
UK United Kingdom
UKL Environmental Efforts
UN United Nations
UPL Environmental Monitoring Effort
US United States
USEPA States Environmental Protection Agency
UU Acts
UUPA Basic Regulations on Agrarian Principles
WALHI Indonesian Forum for Environment
WB World Bank
WHO World Health Organisation
WMP Waste Management Plan (WMP)
WPS Water Pumping Stations
WWTP Wastewater Treatment Plant

iii 314049_Lahendong_NTS_RevC.docx
1 Introduction
1.1 Overview
The purpose of this document is to present in a clear, simple and concise manner, the main findings and
conclusions of studies of the potential environmental and social impacts of the construction and operation
of the Lahendong Units 5&6 Geothermal Power Project (the Project), located in the Tompaso and
Kawangkoan sub-districts of the Minahasa District, North Sulawesi. This document is a non-technical
summary (NTS) of the Environmental and Social Impact Assessments (ESIA) that have been undertaken
to identify and manage impacts. The Project is being developed by Pertamina Geothermal Energy (PGE).
The development of geothermal power seeks to increase the amount of energy generated in Indonesia,
given the existing power shortages and predicted growth in demand for energy and electricity. Geothermal
power is a source of renewable energy and allows Indonesia to use its existing national resources.
The Project involves the development of well clusters, steamfields and a power plant. The steam extracted
from the geothermal wells will power a geothermal power station with an net output capacity of 40 MW,
made up of the two 20MW units, referred to as Units 5&6. This part of the Project included the preparation
of an international-quality ESIA, in compliance with World Bank procedures and guidelines. This ‘Original
ESIA’ was completed in 2011.
Since the finalisation of the Original ESIA, PGE has identified a need to develop additional well clusters
and associated project infrastructure connected with Units5&6 of the geothermal power station. This is
primarily due to insufficient capacity in the existing network of well clusters to maintain future steam supply
(and hence power supply). PGE therefore intends to undertake further development of the Lahendong
Units 5&6 Geothermal Power Project. This work includes the preparation of a ‘Supplemental ESIA’, to
identify any potentially significant environmental and social impacts resulting from the additional Project
infrastructure.
Under Indonesian legislation, environmental assessment as a planning tool is known as Analisa Mengenai
Dampak Lingkungan (AMDAL). Due to the size of the Project, a full AMDAL process is not typically
required, instead, an Environmental Management Effort (Upaya Pengelolaan Lingkungan – UKL) and
Environmental Monitoring Effort (Upaya Pemantauan Lingkungan – UPL), collectively known as a
UKL/UPL, must be prepared. A UKL/UPL for the purpose of permitting and compliance with Indonesian
legislation was undertaken and completed on behalf of PGE by a local university consultancy, Badan
Konsultan AMDAL Unsrat-Universitas Samratulangi (the Local AMDAL Consultants), for the steam field
and another for the power plant (2009 and 2010 respectively); approval of these reports was received from
the Head of the Environment Agency (BAPEDALDA / Badan Lingkungan Hidup (BLH)) of Minahasa
Regency. The UKL/UPL documents were revised as a result of Project changes identified in late 2010 and
were resubmitted for approval in March 2011. A further UKL/UPL study has been undertaken to account
for a number of the proposed new Project components; this received approval, with an Environmental
Permit, from the Head of the Minahasa Regency on 1 April 2013. Some of the proposed new Project
components will be located within or close to the boundary of the Hutan Lindung (watershed protection
forest) and therefore a full AMDAL process will be required for these; however this study has not yet been
commissioned.
1 314049/TRD/EFR/001/C December 2014

The scope of the Original ESIA included the steam field (addressing cluster development for the project,
separators and pipes), the water pumping stations, access roads built for the Project and Lahendong Units
5&6 power plant. The scope of the Supplemental ESIA focussed only on those components which are
additional or modified since the Original ESIA.
1
The Original ESIA report is available on PGE’s website ; it is recommended that this document is
consulted alongside the Supplemental ESIA documents for further information.
1.2 The Project developer
The Project is being developed by Pertamina Geothermal Energy, a subsidiary of the Indonesian national
oil company PT Pertamina (Persero), was established in 2006 as mandated by the Government of
Indonesia (GoI) to develop 14 Geothermal Business Working Areas in Indonesia. Of the 14 Geothermal
Business Working Areas, four are operational sites (Kamojang, Lahendong, Sibayak and Ulubelu Units
1&2), which collectively generate on average 20 million tons of steam per year.
PGE is developing several other sites, including the Lahendong Units 5&6 site which is the focus of this
report.
PGE has received a portion of a grant from The Government of New Zealand, which has been channelled
through the World Bank, to assist them in capacity building and contributing to the costs of development of
the Lahendong Units 5&6 Geothermal Power Project.
1.3 Opportunity to comment on the Project
As part of the UKL/UPL process for the wells (steam field) and for the power plant, “socialisation” or public
consultation has previously been carried out by the Local AMDAL Consultant in accordance with
Indonesian legislation. Formal consultation was also undertaken by MML during preparation of the Original
ESIA. Consultation with heads of villages and with national and regional bodies has been undertaken to
inform the Supplemental ESIA.
Prior to finalisation of the Supplemental ESIA documents, the draft documents were disclosed as follows:
 PGE posted the draft Supplemental ESIA documents (Volumes I to III) on the PGE
(www.pge.pertamina.com) website on 6 October 2014, for a period of 30 days. The Original ESIA
Volume II (main report) and Volume III (Appendices) were also disclosed alongside the Supplemental
documents to provide the necessary background information to read and understand the Supplemental
ESIA. Interested and/or affected stakeholders were given the opportunity to comment on the
Supplemental ESIA, however no comments were received.
 Printed copies of these documents (translated into Bahasa Indonesia) were made available at the PGE
site office and at each Hukum Tua’s office from 6 October 2014, for a period of 30 days to enable local
community members to review the Supplemental ESIA and submit comments. No comments were
received by PGE.
1
http://pge.pertamina.com/index.php?option=com_phocadownload&view=category&id=12:esia-lahendong&Itemid=107&Itemid=108

 PGE submitted the draft Supplemental ESIA documents (Volumes I to III) to the World Bank on 13
October 2014.
 PGE sent copies of the draft Supplemental ESIA to the heads of local PKK groups at Lahendong on 6
October 2014; no comments were received from PKK groups.
 PGE publicised information relating to PGE activities and details of the ESIA disclosure period at the
Kecamatan Office (district office) but no comments were received.
 Notice of the disclosure period for the Supplemental ESIA was also published in a newspaper with
provincial coverage (the Manado Post) on 30 October 2014.
The key channels identified for communicating information to interested parties are as follows:
 Disclosure within the local communities of the Supplemental ESIA;
 Ongoing media communications;
 Ongoing stakeholder meetings and community liaison during construction and operation;
 Community investment activities;
 Annual reports; and
 Open days during operation.
Following completion of the 30 day disclosure and consultation period for comments on the ESIA, ongoing
consultation will be facilitated by the PGE Project Public Relations Officer (PRO). Questions and
comments can be addressed to PGE’s PRO:
PGE – Project Proponent

Name Mr Irvan Prabawa
Address: Jl. Raya Tomohon No. 420 Tomohon, 95362, North Sulawesi - Indonesia
Tel: +62431 351 378
Fax: +62431 351 175
Email: irvan.prabawa@pertamina.com
1.4 What are the key ESIA documents related to the Project?
The ‘Original ESIA’ documentation prepared by MML (finalised in March 2011) comprised four volumes, as
follows:
 Lahendong 5&6 Revised ESIA Report - Volume I, Non-Technical Summary (NTS) (February 2011);
 Lahendong 5&6 Revised ESIA Report - Volume II: Environmental and Social Impact Assessment
(ESIA) (February 2011);
 Lahendong 5&6 Revised ESIA Report - Volume III: Appendices (February 2011);
 Lahendong 5&6 Revised ESIA Report - Volume IV: Environmental and Social Management Plan
(ESMP) (February 2011).
This ‘Supplemental ESIA’ documentation prepared by MML (finalised in December 2014) comprises three
volumes, as follows:
 Lahendong Units 5 & 6 Supplemental ESIA – Volume I: Non-Technical Summary (this document,
which supersedes the Volume I: NTS produced in 2011);

 Lahendong Units 5 & 6 Supplemental ESIA – Volume II: Supplemental Environmental and Social
Impact Assessment (which is supplemental to the Volume II: ESIA produced in February 2011 and also
makes reference to ‘Volume III: Appendices’ produced in February 2011);
 Lahendong Units 5 & 6 Supplemental ESIA – Volume III: Environmental and Social Management Plan
(which supersedes the Volume IV: ESMP produced in 2011).

2 The Project
2.1 The need for the Project
As a whole, Indonesia has been experiencing rapid demand growth in all segments of the energy sector for
several years. Power shortages resulting in frequent blackouts have been experienced in 250 regions,
including Sulawesi. Given the existing power shortages and predicted growth in energy demand the need
for new energy generation facilities to be established and commissioned over the next few years is high.
The following points highlight the national and regional needs for development of additional energy sources
with the objectives of the Project being to:
 Contribute to national energy requirement for sustainable development;
 Contribute to regional energy requirements of Sulawesi;
 Contribute to a diverse energy base to secure energy requirements for Sulawesi;
 Provide continuous, reliable, high efficiency and low cost energy;
 Provide economic and social benefits on both a national and regional level;
 Provide potential employment opportunities to the community residing in the region and nearby;
 Contribute to the local economy, social and technical infrastructure; and
 Increase the diversity of energy resources.
In particular geothermal energy provides an alternative solution to current dependence on coal to supply
majority of baseload demand.
2.2 Project definition
2.2.1 Geothermal power
To utilise geothermal energy, production wells are drilled down into the heated water contained within the
Earth's crust - the geothermal reservoir. Once these geothermal reservoirs are tapped into, the heated
water and steam rise to the surface where the steam is separated and used to power steam turbines,
which then generate mechanical energy that can be harnessed as electricity. Brine and condensate as
one pipe header are returned via reinjection wells back to the geothermal reservoir.
Figure 2.1 presents a high level summary of the overall geothermal power plant process. The process can
be separated in two main areas:
 Steam fields, where steam is extracted, processed and also subsequently re-injected; and
 Power plant, where the extracted steam is used to generate electricity.

Figure 2.1: Geothermal Power Plant Process Summary
Source: PGE
2.2.2 Lahendong Units 5&6 Geothermal Project
2.2.2.1 Project location
The Lahendong 5&6 Project site is located approximately 50 km south of Manado or approximately 60 km
from Bitung’s port, North Sulawesi, Indonesia. Several villages are located in the vicinity of the Project,
including Sendangan, Pinabetengan, Pinabetengan Utara (North), Tompaso II, Kanonang (I and II),
Tonsewer, Touure, Liba, Tember, Kamanga (I and II) and Talikuran in the Tompaso and Kawangkoan
sub-districts of the Minahasa District.
Although the Project is referred to as Lahendong Units 5&6, it is located on the Tompaso geothermal
reservoir which is approximately 20-25km from the separate Lahendong geothermal reservoir where the
existing Lahendong Units 1, 2, 3 and 4 power stations are located. The Project is therefore distinct and
isolated from these other power units and is also referred to within Indonesia as the ‘South Lahendong’ or
development. Following modification of the project components since the Original ESIA, the south western
components of the Project now extend into the watershed protection forest (Hutan Lindung).

A regional map showing the project location is shown in Figure 2.2.
Figure 2.2: Project Location in relation to North Sulawesi
Source: National Coordinating Agency for Surveys and Mapping
2.2.2.2 Original Project definition
The Lahendong Units 5&6 Project originally included three clusters (groups of wells); two for steam
production (Cluster 26 and Cluster 27) and one for condensate and brine reinjection (Cluster 32), and
associated access roads. The steam produced will power a geothermal power station of two 20MW units

referred to as Lahendong Units 5&6 with a total net power output of 40MW. However, following analysis of
preliminary data, the ‘Feasibility Study for Tompaso Geothermal Power Project (produced by the Technical
Consultants AECOM) recommended that the Project should also consider up to two potential additional
production well clusters (P1 and P2) and one potential additional reinjection well cluster. The Project was
intended to be connected by 150kV transmission line to the existing grid at the PLN Kawangkoan
substation which was approximately 2.7km from the original power plant site.
Figure 2.3 presents a summary of the Project components that formed the focus of the Original ESIA for
Lahendong Units 5&6.
Figure 2.3: Main Project Components as assessed in the Original ESIA
Legend:
Source: Mott MacDonald Lahendong 5&6 Revised ESIA Report – Volume III

2.2.2.3 Supplemental Project definition
There is an operational requirement to expand the Tompaso geothermal field. The production capability of
the wells drilled under the scope of the Original ESIA has been shown to be inadequate to meet electricity
generation requirements at the Units 5&6 plant. Therefore, additional production and reinjection wells have
been proposed by PGE to account for this shortfall in generating capacity. With technical feasibility
considerations in mind, the decision has also been made to re-locate the proposed power plant site closer
to the main production wells, as this will minimise steam losses, require a reduced length of pipeline and
improve cooling tower efficiency compared to the Original ESIA location.
The Supplemental ESIA also focuses on the Units 5&6 power plant and the production wells, reinjection
wells and make-up wells proposed to serve it; some of these are the same as the Original ESIA, some
have been modified and others are new additions. Potential cumulative impacts – the impacts of PGE
Units 5&6 combined with impacts of other plant in the area - have been considered where they are beyond
those considered in the Original ESIA. However the Units 5&6 plant is located 20-25km from the separate
Lahendong geothermal reservoir and therefore no cumulative impacts are expected due to the Units 1, 2, 3
and proposed Unit 4 plants.
The modified Project consists of a total of eleven clusters (each comprising one to seven wells). Four of
the clusters (27, P1, P2 and 26-27) may be used for steam production and two (R1 and R2) for condensate
and brine reinjection. Three of the clusters are designated as make-up clusters (A, B and C) to maintain
generating capacity in future years as the productivity of the production wells declines. The remaining
clusters (Cluster 26 and Cluster 32) were installed following the Original ESIA but were deemed unsuitable
for production or reinjection; they are now idle but will be retained for future well monitoring purposes.
The scope of the Supplemental ESIA therefore includes:
Components which are retained and/or modified from the Original ESIA:
 The Units 5&6 power plant is now located approximately 1.9km north-east of the original site, just north
of Cluster 27. Consequently, the transmission line proposed to connect Units 5&6 to the main grid will
also be relocated and its length significantly reduced (approximately 350m rather than 2.7km);
 Cluster 27 (production) has been drilled and tested, although an additional two wells are now required
to be drilled here as a shortfall in production requirements has been identified to generate net capacity
2x20 MW;
 Potential additional production clusters P1 and P2 remain unchanged from the Original ESIA;
 Potential additional reinjection cluster R1 is now referred to as reinjection cluster R2.
New Project components proposed since the Original ESIA:

 A further new production cluster, with a maximum of seven wells, is proposed between Cluster 26 and
Cluster 27; this cluster is called ’26-27’. The use of this Cluster depends on the testing outcome at
Cluster 27 and subsequently, P1 and P2. If these production clusters are found to meet production
requirements, 26-27 will be retained as a make-up cluster. If not, some wells as Cluster 26-27 may also
be required for production;
 A new reinjection cluster, R1, is proposed. This will be located close to cluster R2, which was included
in the Original ESIA;

 Three new make-up clusters (A, B and C) each comprising a maximum of seven wells. Two of these
clusters (B and C) will be located in the Hutan Lindung;
 A new Water Pumping Station (WPS) located in the Hutan Lindung will be required to serve Clusters A,
B, C and possibly P1 and P2; alternatively Clusters P1 and P2 will use the existing WPS;
 Additional pipeline corridors are also proposed to connect Project components. Given the locations of
clusters, certain lengths of pipeline will be located in the Hutan Lindung.
Figure 2.4 presents a summary of the Project components associated with the Lahendong geothermal
development.
2.2.2.4 Status of Project components
At the time of the Original ESIA, clusters 26, 27 and 32 had been drilled and the WPS at Pinabetengan had
been constructed. Since then, no further wells have been drilled although during the site visit in
August/September 2013 it was observed that preparations were underway to drill two new wells at Cluster
27. These preparations were limited to the installation of a concrete base around the proposed wells. It is
understood that mobilisation of the drilling rig at these wells commenced early January 2014. Construction
of Cluster R2 commenced in May 2013 and was completed in November 2013. Construction of Cluster R1
commenced November 2013 and was completed in April 2014.
Land has not been acquired for the majority of new Project components, most of which are located on
private land, although land acquisition for the new power plant was completed on 12 September 2014.
Land acquisition for the brine-condensate pipeline location is underway and expected to be completed mid-
2015. Only Clusters B and C and associated infrastructure will be located within the Hutan Lindung. The
Hutan Lindung is owned by the Government of Indonesia and PGE will apply for a permit (IPPKH) to use
the land for geothermal power. However, it is anticipated that construction of the make-up clusters will not
occur in the near future as they are unlikely to be required for some years.

Figure 2.4: Project Component Scope (Supplemental ESIA)
Note: Locations of Clusters A, B, C, 26-27, P1 and P2 are indicative only

11 314049_Lahendong_NTS_RevC.docx
2.3 Schedule
PGE anticipate that land acquisition for Cluster P1, the reinjection pipeline (from Cluster 27 to R1/R2),
transmission line towers, power plant and steam/brine pipelines from Cluster P1 to Cluster 27 will be
completed by the end of 2015 although licensing and permitting requirements will not be completed until
the first quarter of 2016. During this time infrastructure developments associated with the new and existing
clusters, such as steam pipelines, water supply pipelines and civil works, will take place. Drilling and well
testing of wells at clusters R1, R2 and Cluster 27 is expected to occur throughout 2014.
Plant, Design, Supply and Installation (PDSI) completion and the Commercial Operation Date (COD) for
Units 5 is currently scheduled for December 2016 / January 2017; PDSI completion and COD for Unit 6 is
expected approximately 6 months later in June / July 2017 providing that the two new wells at Cluster 27
prove to be successful. If not, a later COD of December 2017 is proposed for Unit 6. A detailed schedule
for the construction and operation of the remaining clusters (P1, P2, 26-27, A, B and C) has not yet been
proposed, although it is acknowledged that this process will be dependent on the success of injection wells
at Clusters R1 and R2 and the new production wells at Cluster 27. The timescales involved in obtaining
Land Use permits for the Hutan Lindung will also have implications on the construction schedules for
Clusters B and C.
2.4 Selection of Project site and technology
The Project development and the ESIA process included consideration of alternative sites, technologies
and configurations.
The search for potential geothermal prospects is carried out through geological mapping, geochemical
sampling of springs and streams along with geophysical surveying. Shallow wells are used to map the
extent of the geothermal site and slim holes may be drilled down to 500-1000 m depth to investigate
temperatures at depth prior to location and drilling of production and re-injection wells. The general
location of well pads and power station in geothermal developments is initially constrained by the overall
geothermal resource. However the physical footprints of the power station, well pads, and access roads
required are small in comparison to the overall exploitation area. The use of directional drilling (the hole is
not vertical and the bottom of the well therefore not directly underneath the well head) of wells to reach the
geothermal resource allows for the development of well pad clusters which can be sensitively located away
from important receptors. Site selection process starts with a review of the topography of the area for
selecting the location for well pads and power plant and determining routes for the process, reinjection
pipes and gathering system. The selection of well pads to date has avoided dwellings and taken into
consideration existing land use. In addition, where feasible, wells have been sited away from steep slopes
and paddy field locations and to minimise the removal of trees. The layout chosen has aimed to maximise
the natural elevation and eliminate the need for pumps within the system, which is instead powered by
natural gravity and pressure within the system.
Based on the requirements for base load (continuous electricity production), stable electricity generation,
costs, raw materials availability and other developments envisaged by PLN, the analysis of alternatives
has concluded that a coal fired thermal power plant would be the most likely alternative to the Project. The

environmental and social impacts of the two options were compared in the Original ESIA and the
comparative review illustrates the benefits of geothermal generation over coal for this Project. A
geothermal generation plant is considered to be the most appropriate solution for achieving the objectives
of this project as well as the overall power generation expansion plan for Indonesia.

3 Managing Environmental and Social

Impacts
3.1 Assessing the Project
An assessment of the potential impacts arising from the Project development has been undertaken, as
described in Section 3.2 below; the assessment comprised a detailed review of the potential environmental
and social impacts of the Project. The assessment included:
 Establishing or updating the baseline to understand current conditions at and around the proposed
Project sites;
 Prediction of impacts, using, where relevant, advanced modelling tools;
 Identification of mitigation measures to be included in the design, procedures, development and
management of the Project.
The assessment process was supported by local consultation undertaken during the Original ESIA and the
Supplemental ESIA site visit to ensure that PGE understands and has incorporated the concerns of local
people from the surrounding villages into the process.
The significance of an impact is described based on sensitivity of project affected persons / environment
and magnitude of impacts. Where possible, impact magnitude and sensitivity are described with reference
to legal requirements, accepted scientific standards or accepted impact assessment practice and/or social
acceptability. Where the ESIA found that the project could cause significant impacts then actions or
procedures (referred to as mitigation measures) have been developed to avoid, reduce or otherwise
mitigate the effects and reduce their significance. A great number of potential impacts can either be
avoided or reduced through mitigation; however, some environmental impacts may still occur after the
application of mitigation (known as residual impacts). Each chapter of the ESIA has assessed whether
residual impacts, either beneficial or adverse, remain after mitigation.
A summary of the key findings of the appraisal process is provided below for environmental and social
impacts. A full description of all environmental and social impacts is provided in the ESIA document
(Volume II). Only those impacts assessed as ‘significant’ are presented in detail in this NTS document,
along with a description of the mitigation required and any residual impacts. These represent the most
important findings of the ESIA. A brief description is also provided of other impacts although these are not
presented in detail.
It is recognised that a project of this scale and duration has the potential to impact the environment and the
community, both in a positive and negative way. The phases of the Project are:
 Exploration, drilling and construction (relating to the exploration of the geothermal resource, drilling of
geothermal wells and construction of the SAGS and power plant);
 Operation (relating to the operation of the steamfield and power plant); and
 Decommissioning (relating to the post operation of the power plant)
Project activities were considered to identify potential environmental impacts associated with:
 Water quality and hydrology
 Groundwater
 Noise
 Ecology
 Air quality

 Climate change
 Waste management
 Geology and erosion
 Land contamination
 Traffic management
 Archaeology and cultural heritage
Project activities were considered to identify potential social impacts associated with:
 Employment generation;
 Workers well-being
 Community health, safety and well-being
 Land acquisition
 Community investment
These impacts were assessed in the Original ESIA and where impacts have changed since the Original
ESIA, these have then been assessed in detail in the Supplemental ESIA.
3.2 Environmental and social impacts
The summary tables below display the impacts as assessed in the Original ESIA. Where notable changes
to these impacts or additional impacts have been identified in the Supplemental ESIA, these are presented
in bold font to differentiate them from impacts identified in the Original ESIA. The tables below therefore
represent a combined view of the outputs of the Original ESIA and the Supplemental ESIA.

3.2.1 Environmental impacts
3.2.1.1 Water quality and hydrology
Table 3.1: Summary of significant surface water impacts and mitigation measures
Phase Activity Impact Impact Significance Mitigation Measures Residual Significance
Exploration, Abstraction during Less water available Adverse impact of major Prior to any new river abstractions, identify any local users Adverse impact of low
drilling and dry season for human and significance downstream as far as Tompaso II (Maasem River), Tember significance
construction ecological needs (Panasen River) and Kanonang I (Ranaan and Tempok
Rivers).
Choose abstraction flow rate and timing to minimise impacts
on water course and to ensure minimal stream flow
maintained. Where this cannot be achieved, before drilling
construction, PGE to construct new water supply pipeline
from alternative source to ensure community water supply
unaffected.
Use pond to store water for drilling and recycle “muds” to
minimise need for “new” water.
Include additional locations in the Hutan Lindung to be
regularly monitored for water quality and flow.
Monitoring will commence one year prior to construction
to contribute to an improved baseline dataset and
should continue throughout the construction and
operation of the Project.
Apply closed system for drilling activity / use of
geothermal fluid (if applicable) or treated water from
ponds to minimise need for “new” water.
Adherence to framework Water Management Plan
Vegetation Damage to ecology Adverse impact of major Avoid temporary or permanent diversion of water courses or Negligible
clearance and Potential reduction in significance (increased natural flow paths where possible. If unavoidable, ensure
earth moving flow from moderate that diversion works are of adequate capacity and profile of
including diversion significance in the new channel matches the old channel.
of water course Original ESIA to major
significance in the
Supplemental ESIA)
Vegetation Erosion and Adverse impact of major Good construction practice, including bunding of working Negligible
clearance; earth increased sediment significance areas.
moving load reaching local Minimise vegetation clearance.
water courses
Re-vegetate as soon as possible on completion of works.


Temporary waste Pollution of Adverse impact of major Size temporary facilities appropriately and have contingency. Adverse impact of low
water settling pond watercourse by significance Design adequate capacity of treatment ponds / water filters significance
overspill “Muds” to safely manage quantities of waste water arising.
Use of water based drilling muds as opposed to oil-based
drilling muds.
Recycling of drilling muds.
Ponds monitored and cleared of silt periodically to maintain
integrity of treatment and drainage system.
Storage ponds to have impermeable lining such as
HDPE or similar geomembrane of appropriate thickness
bonded together to ensure water-tightness and regularly
checked for rips and tears.
Spills from poor Chemicals or fuel Adverse impact of Development of relevant procedures to avoid and minimise Adverse impact of low
storage of fuels entering local water moderate to major risk of spills, including: significance
and chemicals course used for significance All chemicals and fuels are to be stored in designated sites
domestic or irrigation with impermeable surface and adequate bunding to prevent
supply accidental contamination. Storage areas to be located away
from surface waters.
Suitable spill kits to be provided within storage areas and
near any fuelling / loading areas.
Well Testing Discharge of well Adverse impact of major Ensure settling ponds have adequate storage capacity. Negligible
brines to surface significance Reinjection of water through reinjection wells.
water
Operation Water abstraction Less water available Adverse impact of Choose abstraction rate and timing to minimise impacts on Negligible
to supply water for human and moderate significance water course and to ensure minimal stream flow maintained.
needs of initial ecological needs Record quantity of water abstracted and timing of
charge of cooling abstractions
circuit at the power
plant Water quality and flow monitoring to continue at
additional Hutan Lindung locations. Adherence to
framework Water Management Plan. Monitoring will
commence one year prior to construction to contribute
to an improved baseline dataset and should continue
throughout the construction and operation of the
Project.
Failure of brine / Discharge of brine to Adverse impact of Creation of a brine management plan. Adverse impact of low
condensate surface water moderate significance Position pipeline along line of river to minimise potential significance
pipeline impact to paddy and to allow enhancement of river bank.
Creation of 25 m buffer zone between pipeline and River
Panasen.


In the event of pipeline failure, brine will be diverted via
storage pond of sufficient capacity.
Employ best practice.
Failure of brine Discharge of well Adverse impact of major Minimise risk of brine / condensate discharge through Adverse impact of low
reinjection system. brines to surface significance (increased implementation of reinjection system and provision of significance
water from moderate adequate sized lined storage ponds / system shut down in
significance in the case of reinjection failure.
Original ESIA to major Develop brine management plan to minimise risk of brine
significance in the discharges.
Supplemental ESIA)
In the event of emergency discharge of brine / condensate to
surface waters, treatment will be undertaken prior to
discharge of effluent to comply with Indonesian discharge
geothermal effluent standard.
In the event of pipeline failure, brine will be diverted via
a storage pond of sufficient capacity.
Employ best practice.
Spills from poor Chemicals or fuel Adverse impact of Best practice as for construction. Adverse impact of low
storage of fuels entering local moderate to major significance
and chemicals watercourse used for significance
domestic or irrigation
supply
Draining down of Discharge of effluent Adverse impact of Water to be reinjected into wells. Adverse impact of low
cooling tower to surface water moderate significance significance
Decommissioning Infill of wells As those seen in Adverse impact of Application of same mitigation measures as for construction. Adverse impact of low
construction period moderate significance Adherence to framework Water Management Plan and significance
(increased from low Waste Management Plan to ensure appropriate post
significance in the operational clean-up.
Original ESIA to
moderate significance in
the Supplemental ESIA)
Reinjection cluster construction was assessed to have adverse impacts of low significance. Mitigation proposed includes the creation of bunded areas in low
lying land around reinjection clusters and provision of diversion channel around bunded areas. Residual significance is expected to remain of adverse low
significance.

3.2.1.2 Groundwater
Table 3.2: Summary of significant groundwater impacts and mitigation measures

Exploration, Construction of Introduction of highly Adverse impact of major Good well design with deep casing as used and applied Adverse impact of low
drilling and wells and potential mineralised water from significance previously in this area. significance
construction hydrofracturing deep aquifer into the If water levels are found to have been affected then
creating new shallow groundwater provision of alternative water supplies may be
pathways between used for domestic or considered.
the deep and irrigation supply
shallow aquifer Additional locations in the Hutan Lindung to be
regularly monitored to confirm water quality not
affected. Monitoring will commence one year prior to
construction to contribute to an improved baseline
dataset and should continue throughout the
construction and operation of the Project.
Adherence to framework Water Management Plan
Spills from poor Chemicals or fuel Adverse impact of major Development of best practice measures to avoid and Adverse impact of low
storage of fuels entering local wells significance minimise risk of spills. significance
and chemicals used for domestic or Designated sites for chemical and fuel storage to prevent
irrigation supply accidental contamination.
Suitable spill kits to be provided within storage areas and
near any fuelling / loading areas.
Land levelling Changes in Adverse impact of Additional water level monitoring for the ESMP (as Adverse impact of low
groundwater flow and moderate significance outlined in the framework Water Management Plan) significance
level due to the (reduced from major used to ensure that water levels in local wells are not
levelling of land below significance in the affected by the land levelling and that sufficient water is
groundwater table Original ESIA to available for use. If water levels are found to have dropped
moderate significance in in local wells then deepening of the affected wells may be
the Supplemental ESIA) considered
Vegetation Short term decrease in Adverse impact of Best practice construction methods, such as ensuring Adverse impact of low
clearance and road local groundwater moderate significance slope angles are keep to a minimum, stabilising slopes significance
construction quality where necessary and reseeding of land.
increasing risk of
landslides
Operation Water abstraction Reduced groundwater Adverse impact of major Investigation into water levels and flow during construction Negligible
from shallow levels and potential significance phase.
groundwater to drying of local wells Investigate new source of water for plant if risk is found to
supply water needs used for domestic and be high.
of power plant irrigation supply
Deepen wells affected by reduced water levels.
Provide alternative water supply to residents if affected by


reduced water levels.
Storm water runoff Detrimental change in Adverse impact of major Use of good housekeeping and presence and use of spill Adverse impact of low
from hard standing groundwater quality in significance kits. significance
at power plant community wells
discharged to
groundwater via
soakaway
Spills from poor Chemicals or fuel Adverse impact of major Best practice for the storage of fuels and chemicals. Good Adverse impact of low
storage of fuels entering local significance housekeeping to keep leaks to minimum. significance
and chemicals community wells used
for domestic or
irrigation supply
Decommissioning Infill of wells / Detrimental change in Adverse impact of Application of same mitigation measures as for Adverse impact of low
dismantling of groundwater quality in moderate significance construction. significance
Power Plant community wells
The incorrect disposal of scale, other operational waste and domestic waste has the potential to result in leaching of minerals into shallow groundwater used for
domestic or irrigation supply; this impact has been assessed as low adverse significance. Disposal of any hazardous waste (as determined through toxicity
testing) by licensed third parties according to regulations and disposal of domestic waste through appropriate methods in line with Indonesian regulations would
reduce this to an impact which is not significant.
3.2.1.3 Noise
Table 3.3: Summary of significant noise impacts and mitigation measures

Exploration, Increased site Temporary nuisance to Adverse impact of Restricting working hours. Adverse impact of low
drilling and noise during nearby residential moderate significance Use of well maintained plant. significance
construction construction stage receptors
Appropriate positioning of plant considering directionality.
Use of material stockpiles for screening.
Turning off plant when not in use.
Use of appropriate construction methods.
Use of sound reduction equipment (e.g. rock mufflers
during well testing).
Advising villagers in advance of particularly noisy work.
Increased road Temporary nuisance to Adverse impact of Restricting working hours. Adverse impact of low
traffic noise during residential receptors moderate significance Appropriate speed limits (in accordance with PGE policy: significance


construction stage SOP B005/PGE765-3/2014-S0 (TKO Layanan Angkutan
Penumpang dan Barang).
Adequately maintain vehicles and turn off engines when
not in use. Routine vehicle inspection to be carried out
HSE manager
Decommissioning Increased site Temporary nuisance to Adverse impact of As for construction. Adverse impact of low
noise residential receptors moderate significance significance
Impacts on the safety and well-being of workers will be reduced through the use of PPE, including ear protection during drilling. During the operation phase of
the project, increased site noise (due to operation of the plant) and road traffic noise are considered to have a negligible impact on residential receptors.
Nonetheless, mitigation measures including the use of low noise plant, adhering to appropriate speed limits on roads and undertaking maintenance during the
day only have been suggested to further reduce the significance of these impacts. Increased road traffic noise during the decommissioning phase could have an
adverse impact; the same mitigation measures have been proposed as for the construction phase.
3.2.1.4 Ecology
Table 3.4: Summary of significant ecology impacts and mitigation measures

Construction and Construction and Change in aquatic Adverse impact of Weirs built to facilitate water abstraction at the WPS should be Adverse impact of low
Operation operation of weirs biodiversity moderate significance opened regularly where possible. significance
for abstraction Re-vegetate 25m buffer zone between brine / condensate
pipeline and Panasen River with native species thereby
enhancing the river bank biodiversity through replacement of
agriculture with semi-natural riparian habitat. Also provides
further protection of aquatic ecology through prevention of
unlikely spill from pipeline entering Panasen River.
Introduction of Increased hunting and Adverse impact of Prohibit hunting, cultivation and deforestation by PGE and Adverse impact of low
staff to area disturbance to local moderate significance contractor staff members. significance
wildlife Contractor to instruct all personnel with regards to the
prohibition and clearly advise of disciplinary action associated
with non compliance.


Exploration, Construction of Clearance of Adverse impact of The design and location of site access roads will minimise Adverse impact of
drilling and access roads secondary forest major significance land take and focus on modified habitats; low significance
construction and Clusters B An ecologist to advise on final layout design of access reducing to negligible
and C roads to identify micro-siting constraints; (in the medium to
long term)
Forest planting and restoration (which may include the
removal of the Sumatran pine trees and other introduced
species) within the Hutan Lindung; clearance worked
planned to avoid peak period for breeding birds;
Pre-clearance survey to avoid harm to resting nocturnal
species.
Any off-set or resettlement sites for current land uses
(legal or illegal) identified as part of the project that fall
outside the land envelope covered by the components of
this study will be subject to an independent environmental
assessment.
Local community engagement to undertaken in villages in
Project to raise awareness of Hutan Lindung and species
of conservation importance.
Replanting of habitats temporarily disturbed or cleared
during construction, including native trees at a ratio of 3:1
for any that are removed.
Creation of Biodiversity Management Plan
Construction of Removal of mature Adverse impact of Planting of new trees replace those lost; undertake Adverse impact of
access roads trees within moderate significance clearance outside of main breeding period (September to low significance
and Cluster A agricultural land January). reducing to negligible
(in the medium to
long term)
Construction As a result of Hunting and Adverse impact of Restrict use of site access roads to prohibit use for illegal Negligible
and Operation construction of increased human moderate significance logging and hunting of protected species;
access roads in disturbance in Coordinate local community and worker awareness
and near secondary forest programmes to promote understanding of conservation of
secondary biodiversity and education about illegal use of the Hutan
forest. Lindung (no hunting, poaching etc.);
Internal routine patrols around project locations in the
Hutan Lindung;
Sharing of information gathered by PGE during site
monitoring and evaluation activities with local / national
authorities to increase enforcement of legislation
preventing unlawful hunting;


Coordination with local authorities in the case of any
illegal activity occurring (e.g. illegal logging).
Engage with the MoF to identify appropriate measures to
support the Ministry in stewardship of the Hutan Lindung;
Creation of Biodiversity Management Plan.
As none of the original Project components were located in the Hutan Lindung, the Original ESIA concluded that there would not be any major adverse
significant impacts on ecology, however the construction of weirs for water abstraction and the introduction of staff to the area are considered to be of moderate
adverse significance. Vegetation clearance, earthworks, spoil disposal and well drilling / construction could result in changes to terrestrial biodiversity and the
spread of alien invasive plant species; these impacts are considered to be of low adverse significance, reducing to negligible with the introduction of mitigation
measures such as pre-clearance surveys and the use of native species as part of any re-vegetation programme. The Supplemental ESIA includes several
components which are located in the Hutan Lindung and impacts are therefore assessed to be significant, as shown in the above table. However, the
implementation of the mitigation measures is considered sufficient to address these impacts to a level where the effects are not considered to be significant.

3.2.1.5 Air quality
Table 3.5: Summary of significant air quality impacts and mitigation measures
Exploration, drilling Site clearing, Dust nuisance Adverse impact of Dust suppression and control measures, visual monitoring. Adverse impact of low
and construction earthworks and moderate significance PPE for minimising dust exposure from on site receptors. significance
construction
On site traffic NOX, PM10, SO2 Adverse impact of Low emission vehicles and equipment, no idling vehicles Adverse impact of low
and vehicle emissions moderate significance Locate generators away from on site receptors. significance
movements
Off site vehicles Dust resuspension Adverse impact of Dust suppression and control measures, visual monitoring. Adverse impact of low
moderate significance significance
Well tests Hydrogen sulphide Adverse impact of No vertical well testing. Adverse impact of low
(H2S) and particulate moderate significance Use of rock mufflers to elevate emission source. significance
releases
H2S Contractor to implement H2S response plan.
Well blowout H2S and particulate Adverse impact of Site H2S response plan by drilling contractor. Adverse impact of low
releases moderate significance significance
Operation Cooling tower H2S releases Negligible Personal H2S monitors for workers, suitable on site Negligible (reduced
emissions (reduced from ventilation, information on H2S, maintain levels below from low adverse
moderate significance occupational limit, on site H2S monitoring system, significance in the
in the Original ESIA to confined space procedures. Original ESIA to
negligible significance Periodic monitoring of H2S emissions. negligible
in the Supplemental significance in the
Ambient monitoring of H2S concentrations at two Supplemental ESIA)
ESIA) locations (one residential impact site at Pinabetengan
Utara and one background site).
The primary difference between the Original ESIA findings and the Supplemental ESIA findings (as noted in the table above) are that concentrations of H2S as a
result of the operation of the plant are now predicted to be well below the World Health Organization –WHO – H2S guideline and this impact is therefore
considered to be of negligible significance.

3.2.1.6 Climate change
Table 3.6: Summary of significant climate change impacts and mitigation measures
Operation Power Displacement of Beneficial impact of None required. Beneficial impact of
generation Greenhouse Gases (that major significance major significance
would have been
produced in generating
this level of power)
3.2.1.7 Waste management
Table 3.7: Summary of significant waste management impacts and mitigation measures
Exploration, Drilling Day to day Contamination of Adverse impact of low to Implement Waste Management Plan (WMP) which identifies Adverse impact of low
and Construction construction groundwater and moderate significance measures for minimisation of waste and safe disposal of significance
activities streams from waste construction wastes.
including excavation Appropriate facilities/containers for segregation and temporary
drilling mud storage of general wastes on site and establishment of regular
cuttings; scrap disposal to landfill or recycling where possible.
metals, waste
oils, plastics, Use of water based drill muds and recycling of drill muds.
consumables, Storage of muds in lined ponds and of cuttings in dedicated
office wastes. houses.
Regular removal of muds from the settling ponds for re-
injection into total loss wells where available or storage and
subsequent treatment of the muds as relevant waste category
as determined by Indonesia regulation.
Disposal of hazardous waste by third party licensed by MoE.
Segregation of waste streams for reusing and recycling.
Identify reuse and recycle options of non hazardous waste with
local community.
Identification of appropriate site(s) for excavation material
disposal, away from sensitive surface / ground water features.

3.2.1.8 Geology and erosion
Table 3.8: Summary of significant geology and erosion impacts and mitigation measures
Exploration, Soil Increased erosion Adverse impact of Site selection. Adverse impact of
Drilling and excavation for major significance Cover of vulnerable soil with erosion resistant material low significance
Construction well pads B (increased from low and re-vegetation. (increased from
and C significance in the negligible in the
Original ESIA) Original ESIA)
Soil Decreased slope Adverse impact of Site selection. Adverse impact of
excavation for stability major significance Support walls with retaining walls or other appropriate low significance
well pads B (increased from low structures. (increased from
and C and significance in the negligible in the
Units 5&6 Original ESIA) Additional ground elevations, subsidence and seismicity Original ESIA)
power plant monitoring.
Soil Increased surface Adverse impact of Site selection. Adverse impact of

excavation for runoff major significance Make water channels to direct water and minimise bank low significance
well pads B (increased from low erosion. (increased from
and C significance in the negligible in the
Original ESIA) Original ESIA)
Operation Aggressive Decreased reservoir Adverse impact of Monitoring of surface geothermal activity. Adverse impact of low
utilisation pressure moderate significance significance
during stream
field operation
In addition to the above, operation phase impacts from seismic and volcanic hazards were assessed as being of low adverse significance in both the Original
ESIA and Supplemental ESIA.
3.2.1.9 Land contamination
Table 3.9: Summary of significant land contamination impacts and mitigation measures
Exploration, drilling Collection, Change in soil chemistry Adverse impact of Use of water based drill muds and recycling of drill muds. Adverse impact of low
and construction storage, and consequent major significance Storage of muds in lined ponds and of cuttings in dedicated significance
transport of restriction of use, other houses.
drilling muds indirect community and
and cuttings environmental risks Regular removal of muds from the settling ponds for re-
injection into total loss wells where available or storage and
subsequent treatment of the muds as relevant waste category
as determined by Indonesia regulation.

Storage, Change in soil chemistry Adverse impact of Appropriate facilities / containers for segregation of waste and Adverse impact of low
transport and and consequent moderate to major temporary storage of chemicals / fuel on site. significance
use of restriction of use, other significance Training of Contractor employees by Contractor.
chemicals, fuel indirect community and
and waste on environmental risks
construction
site.
Operation Storage, Change in soil chemistry Adverse impact of low Appropriate facilities/containers for segregation and permanent Adverse impact of low
transport and and consequent to moderate storage of chemicals / fuel on site. Temporary storage significance
use of restriction of use, other significance facilities available for maintenance periods.
chemical, fuels indirect community and Internal training of PGE operational shift staff / maintenance
and waste on environmental risks staff.
operational
sites
Steam field Change in soil chemistry Adverse impact of Minimise risk of brine / condensate discharge through Adverse impact of low
operation and consequent moderate significance implementation of reinjection system and provision of significance
restriction of use, other adequate sized lined storage ponds / system shut down in
indirect community and case of reinjection failure.
environmental risks Develop Brine Management Plan to minimise risk of brine
discharges.
In the event of emergency discharge of brine / condensate to
land, treatment will be undertaken prior to discharge of effluent
to comply with Indonesian discharge geothermal effluent
standard.
The spill of brine and condensates during well testing could result in changes in soil chemistry and a risk to human health. The same impact could result from
demolition work and the production of hazardous waste in the decommissioning phase. Both of these impacts have been assessed as adverse low significance
both before and after the application of mitigation. Mitigation measures proposed for the operation phase include the implementation of a brine re-injection
system, provision of adequately sized storage ponds and the development of and adherence to a Brine Management Plan. Mitigation proposed for the
decommissioning phase is similar to the construction phase and includes appropriate disposal of hazardous wastes.

3.2.1.10 Traffic management
Table 3.10: Summary of significant traffic impacts and mitigation measures

Construction Traffic Increase in traffic Adverse impact of Development and implementation by PDSI contractor of Traffic Adverse impact of low
associated with resulting in delays on moderate significance Management Plan (TMP). significance
steam field / local traffic network /
power plant increase risks associated
development with road safety
Traffic Physical effects (wear Adverse impact of Traffic Management Plan Beneficial impact of
associated with and tear) of construction moderate significance Potential improvement as part of CSR programme. low significance
steam field / traffic (including
power plant abnormal loads) on local
development road infrastructure.
Construction Traffic Increased duration of Adverse impact of Adherence to the Traffic Management Plan Beneficial impact of
associated works, additional moderate Any road damage specifically associated with the low significance
with number of fleet and significance construction and mobilisation activity of the geothermal
development personnel movements system shall be addressed and repaired by PGE.
of proposed and further
new steam infrastructure wear and
field tear
components
Negligible impacts are predicted to occur due to the increase in traffic associated with staff movements and maintenance.
3.2.1.11 Archaeology and cultural heritage
Excavation works during the construction phase are not expected to have a significant impact on the disturbance of on-site archaeology or cultural heritage.
PGE will require contractors to establish a Chance Find Procedure.

3.2.2 Social impacts
Table 3.11: Summary of significant social impacts and mitigation measures

Phase Activity Impact Impact Significance Mitigation / benefit enhancement Measures Residual Significance
Starting Community Community development Beneficial impact of Development of participatory community investment Beneficial impact of
immediately investment moderate planning moderate significance
continuing through significance
all phases
Starting Community Community Beneficial impact of Villagers and village leaders to be consulted to identify Beneficial impact of
immediately investment development low to moderate community needs to help prioritise the CSR budget. moderate
continuing significance Implementation of CSR to be recorded in an activity significance
through all log, supported by photographs, to assist in future
phases monitoring by project lenders.
Exploration, drilling Employment Generation of Beneficial impact of Disclosure of a published recruitment policy, including Beneficial impact of
and construction Generation approximately 1,365 moderate prioritisation of local employment. moderate significance
temporary low-skilled significance Use of village employment committees.
jobs phased
throughout the whole Vocational training schemes.
of construction period. Local employment to be prioritised, contractor to
provide additional specialised training to local
workforce in skills required by contractor.
Activities within site Risk to community Adverse impact of Mitigation of environmental impacts such as noise, dust Adverse impact of low
and worker camp health, safety and well- moderate and excavation waste. significance
boundaries being from site activities significance Restricting access to sites through appropriate fencing /
and workers signage around site perimeter.
Reducing malarial incidence through maintenance of good
construction site drainage, minimising standing water
within Project areas, managing storage / settlement ponds
to control mosquitoes.
Site security personnel (appropriately vetted and trained).
Site registry/identification system.
Develop and disclose community grievance mechanisms.
Well production Risks to community Avoid vertical testing in favour of horizontal testing.
testing members’ safety and Use of rock muffler to mitigate noise emissions during
damage to crops from horizontal well testing.
debris, health risks due
to H2S exposure

Phase Activity Impact Impact Significance Mitigation / benefit enhancement Measures Residual Significance
Heavy load and other Road safety risks and Road safety plans / maximum speed limits for site and
vehicles driving damage to road access routes and traffic safety sessions for children.
through communities infrastructure and Contractor programme to monitor and enforce safety plans,
drainage systems accident reporting and statistics, establish penalties for
violations.
Maintenance of site and access roads under PGE’s
responsibility to reduce erosion/degradation of drainage
channels.
Traffic safety sessions for children.
Water extraction and Pollution of / shortages in Audits of water infrastructure, maintenance and activities
settling ponds community water and monitoring of ground and surface waters.
Exploration, Land acquisition / Payment of cash Beneficial impact of Updates to LARPF2 to protect tenants and informal Beneficial impact of
drilling and Rent Use of land in compensation for low to moderate land users low to moderate
construction Hutan Lindung acquired land, assets significance Information campaign with Forestry Department on significance
and crops illegal activities (e.g. hunting) in the Hutan Lindung
Operation Employment Generation of Beneficial impact of Disclosure of a published recruitment policy, including Beneficial impact of
Generation approximately 285 moderate prioritisation of local employment. Use of village moderate significance
mainly long-term significance employment committees.
medium-highly skilled Local employment to be prioritised, PGE to provide
jobs. vocational training schemes to local workforce
employed for a minimum of one year via supply
companies in skills required by power plant operation.
Activities within site Risk to community health Adverse impact of Continuation of relevant activities above. Negligible
boundaries and and safety within site moderate Health and safety awareness sessions for communities
steam transmission boundary significance about risks related to tampering with steam pipes
piping
Operation Activities within Risk to community Adverse impact of Raising community awareness on health and safety Adverse impact of low
site boundaries and health and safety from moderate issues related to steam pipelines – information significance
steam transmission contact with hot significance campaigns for residents living close to steam pipes.
piping water/steam Fencing around steam traps to prevent access by
community members.
Post operation / Dismantling of power Risk to community health Adverse impact of Sealing and capping of wells Negligible
decommissioning plant and wells and safety from moderate Land reclamation to remove health and safety hazards
phase decommissioned power significance
plant and wells
2
Land Acquisition and Resettlement Policy Framework (refer to Volume III of the Original ESIA)

In addition to the significant impacts detailed above, the following non-significant impacts were also identified:
 Beneficial impacts were identified for land acquisition from the payment of cash compensation for acquired land, assets and crops;
 Adverse impacts were identified for the well-being of workers on site and in camps; however these could be reduced to negligible impacts through the
implementation of mitigation measures such as the distribution of health awareness brochures, the installation of safety ladders to settling ponds and the
development of labour management and staff grievance policies, including policies / clauses for contractors to prohibit the use of child and forced labour and
to promote non-discrimination and equal opportunities.

3.3 Cumulative impacts
PGE currently owns and operates geothermal steam production and reinjection fields in the Lahendong
geothermal reservoir area. These production wells provide steam for the Lahendong Units 1, 2 and 3
geothermal power plant owned and operated by the state-owned PLN. Units 1&2 are located separately
from Unit 3. Unit 4 is currently under development and will be located adjacent to Unit 3. Each unit has an
output capacity of 20MW.
Although the Project is referred to as Lahendong Units 5&6, it is located on the Tompaso geothermal
reservoir which is 20 to 25km distance from the separate Lahendong geothermal reservoir where the
existing Lahendong Units 1, 2 and 3 and future Lahendong Unit 4 power stations are located. The Project
is therefore distinct and isolated from these other power units and is also referred to within Indonesia as
the South Lahendong or Tompaso Units 1&2 project. The air dispersion modelling for Lahendong Units
5&6 has indicated that any potential contributions of pollutants from the power plant are already well
dispersed 5km from the plant and would be further dispersed by the time they reached the other Units and
not contribute to impacts in the areas around Units 1 to 4. No interaction of the plumes from the Units 5&6
with Units 1 to 4 would therefore be expected. The existing and future Lahendong Units 1 to 4 are outside
the scope of the Project and of this ESIA.
Due to the distance, negligible cumulative impacts are expected and are not considered further within this
assessment.
3.4 PGE’s management of environmental and social impacts
PGE has developed an Environmental and Social Management Plan (ESMP) that draws upon the
management and mitigation measures which have been defined within the Original and Supplemental
ESIAs. The ESMP is presented as Volume III of the Supplemental ESIA documentation. The primary
objective of an ESMP is to safeguard the environment, site staff and the local population from site activity
that may cause harm or nuisance. The management plan, which also covers monitoring, is the basis of
the environmental and social protection measures to be implemented by PGE and its contractors.
In addition to the ESMP, a number of complimentary framework plans, policies and procedures have been
developed including the following:
 Air quality (H2S) monitoring programme;
 Recruitment plan;
 Retrenchment plan;
 Labour grievance mechanism framework;
 Biodiversity management plan;
 Waste management plan;
 Water management plan;
 Traffic management plan;
 Temporary worker accommodation management plan; and
 Chance finds procedure.

Responsibilities for implementation are outlined in the ESMP and fall to either PGE or the contractors
undertaking the work. The implementation of the ESMP provides the framework to manage environmental
and social impacts (including World Bank operational policies and guidelines) and best practice.

4 Summary
The development of geothermal resources in Indonesia is important in meeting growing demand for
energy. Geothermal power generation at Lahendong will contribute to providing electricity in North
Sulawesi. The environmental and social impacts of development of the geothermal field, including the
construction of Units 5&6 power plant, steam field and access roads have been assessed. The majority of
the infrastructure was assessed and reported in 2011 in the Original ESIA and additional infrastructure
(mainly the development of additional well pads) assessed and reported in 2014 in the Supplemental ESIA.
The findings of the ESIA identified only a few issues that were likely to result in significant residual effects
on the environment or people. These issues are:
 The generation of power by means of geothermal resources would have a beneficial effect in terms of
greenhouse gas emissions compared to generation of power from non-renewable sources
 Employment generation during the construction (around 1,350 jobs) and operation (around 300 jobs) is
considered to have a beneficial effect
 Commitments by PGE to work with local people to identify priorities for investment in community
development are considered to be beneficial impacts.
A number of potential impacts have been avoided or reduced through the adoption of a range of mitigation
measures. These are identified in the impact assessment and often take the form of management plans for
specific issues. For example, management plans will control activities relating to water, waste, biodiversity
and traffic, each containing specific objectives and actions to protect and manage the environment.
Monitoring will be adopted as part of construction and operational environmental management in order to
ensure that impacts will be maintained at or below the predicted level of impact. Information gathered from
water quality monitoring will be used to refine the mitigation measures proposed. Ecological surveys, in
particular pre-clearance surveys at proposed sites in the Hutan Lindung will be used to inform the
construction schedule and influence site selection. Similarly, ground subsidence and seismicity monitoring
results will be used in the site selection process for certain cluster locations. Air quality monitoring in the
Lahendong project area will commence on operation on the Units 5&6 plant, using portable H 2S monitors,
to enable any potential risks to the protection of the local community to be identified.
Management plans and monitoring systems are public commitments by PGE to protect the environment
and local people and these responsibilities are also applicable to contractors appointed by PGE.


Lahendong Units 5 & 6 Supplemental ESIA - : Non-Technical Summary December 2014 Pertamina Geothermal Energy

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Lahendong Units 5 & 6 Supplemental ESIA - : Non-Technical Summary December 2014 Pertamina Geothermal Energy

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Lahendong Units 5 & 6

Pertamina Geothermal Energy

Pertamina Geothermal Energy

Issue and revision record

Revision Date Originator Checker Approver Description Standard

Shalini Arora &

C 05/12/2014 Shalini Arora Ian Scott Ian Scott Final

This document contains confidential information and proprietary

314049/TRD/EFR/001/C December 2014

Section Title Page

3 Managing Environmental and Social Impacts 14

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AIDS Acquired Immune Deficiency Syndrome

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MENKES Decree of. Minister of Health Regulation

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TEM Transient Electro-Magnetic

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1.2 The Project developer

1.3 Opportunity to comment on the Project

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PGE – Project Proponent

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2.1 The need for the Project

2.2 Project definition

2.2.1 Geothermal power

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Figure 2.1: Geothermal Power Plant Process Summary

2.2.2 Lahendong Units 5&6 Geothermal Project

2.2.2.1 Project location

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A regional map showing the project location is shown in Figure 2.2.

Figure 2.2: Project Location in relation to North Sulawesi

Source: National Coordinating Agency for Surveys and Mapping

2.2.2.2 Original Project definition

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Figure 2.3: Main Project Components as assessed in the Original ESIA

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2.2.2.3 Supplemental Project definition

The scope of the Supplemental ESIA therefore includes:

New Project components proposed since the Original ESIA:

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2.2.2.4 Status of Project components

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Figure 2.4: Project Component Scope (Supplemental ESIA)

Note: Locations of Clusters A, B, C, 26-27, P1 and P2 are indicative only

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2.4 Selection of Project site and technology

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3 Managing Environmental and Social

3.1 Assessing the Project

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3.2 Environmental and social impacts

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3.2.1 Environmental impacts

3.2.1.1 Water quality and hydrology

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Phase Activity Impact Impact Significance Mitigation Measures Residual Significance