ESIA for Petrochemical

Complex, PT Lotte
Chemical Indonesia

Executive Summary
 CONTENTS
1. Introduction........................................................................... 1

2. Project Description ............................................................... 2

3. Policy and Legal Framework ............................................... 4

4. Scoping ................................................................................. 4

5. Baseline ................................................................................. 4

5.1 Environmental Baseline ............................................... 4

5.2 Biodiversity Baseline .................................................... 7

5.3 Social Baseline ............................................................ 8

6. Impact Assessment ............................................................ 14

7. Cumulative Impact Assessment ........................................ 20

8. Environmental and Social Management Plan ................... 20

1. Introduction
PT Lotte Chemical Indonesia (hereafter referred to as ‘LCI’) is planning to develop a vertically
integrated petrochemical plant and its supporting facilities (hereafter referred to as ‘Petrochemical
Complex’, or ‘the Project’) in Indonesia. The Project aims to improve the availability of raw materials
such as Ethylene and Propylene for companies within the LOTTE Group, and for the broader plastic
industry market in Indonesia, which currently largely relies on imported polymer products.
LCI has conducted AMDALs (Analaisis Mengenai Dampak Lingkungan, translating as Environmental
Impact Analysis) for the Project, with the first AMDAL (Analisis Dampak Lingkungan, translating as
Environmental Impact Analysis Report i.e., the document of the AMDAL) approved and Environmental
Permit issued in September 2018.
In 2019 LCI commissioned a ‘LOTTE Chemical Environmental and Social Gap Analysis Report’ (Gap
Analysis Report) of the local AMDAL against Equator Principles 4 (EP4) and International Finance
Corporation Performance Standards (IFC PS). The resulting Gap Analysis Report identified a number
of gaps, including lack of sufficient reporting greenhouse gas emissions, sampling and modelling of
Air, Water, and Noise, assessment of impacts on biodiversity and others, Project alternative analysis,
and development of stakeholder engagement plan (SEP) and Grievance Mechanism and included a
recommendation to conduct a full Environmental and Social Impact Assessment (ESIA) in order to
align with international standards.
This document is the resulting ESIA Report and aims to close relevant gaps identified in the Gap
Analysis Report. The Report is structured as followed:
 Chapter 1: Introduction;

 Chapter 2: Project Description and Project Alternatives;

 Chapter 3: Policy and Legal Framework;

 Chapter 4: Impact Assessment Methodology;
 Chapter 5: Scoping;
 Chapter 6: Environmental and Social Baseline;
 Chapter 7: Environmental Impact Assessment;
 Chapter 8: Social Impact Assessment;
 Chapter 9: Unplanned Events Assessment;
 Chapter 10: Environmental and Social Management Plan;
 Chapter 11: Cumulative Impact Assessment; and
 Chapter 12: Stakeholder Engagement.
 Annexes:
- Annex A: Project Specific Numerical Standards and Guidelines;
- Annex B: Supplementary Biodiversity Data;
- Annex C: AMDAL Measures;
- Annex D: Stakeholder Engagement Minutes of Meetings and Photos;
- Annex E: Community Grievance Card and Grievance Log Form;
 - Annex F: Human Rights Impact Assessment;
- Annex G: Climate Change Risk Assessment;
- Annex H: Air Quality Modelling Methodology;
- Annex I: Contour Plots for Operational Phase Air Quality Impact Assessment; and
- Annex: J: Thermal Recirculation Study Report
- Annex K: Sediment Dispersion Study Report.

2. Project Description
The Project will be located on industry designated land in the villages of Rawa Arum and Warnasari,
Cilegon City (refer to Figure. 1). LCI plans to develop the Project in two phases:
 Phase 1, including some reclamation work – this phase is confirmed; and

 Phase 2, expansion – land for Phase 2 is reserved for future development.

Table. 1 summarizes the overview of project plan and capacity.

Table. 1 Overview of Project Plan and Capacity

Unit Product Capacity
Phase 1
Ethylene Unit Ethylene 1,000 Kilo Ton Annum (KTA)
(NCC Unit) Propylene 690 KTA
Benzene-Toluene-Xylene Unit Benzene 260 KTA
(BTX Unit) Toluene 90 KTA
Xylene 50 KTA
Butadiene Unit (BD Unit) 1,3-Butadiene 140 KTA

Polypropylene Unit Polypropylene 250 KTA

(PP Unit)
Major Supporting Facilities of Phase 1
Jetty - One existing berth and three new
berths for Phase 1
Gas turbine generator (GTG) set to 55 megawatts (MW)
support petrochemical complex
operation
Seawater intake station ■ Two seawater intake pipes
and seawater screening
packages
■ Five seawater pumps and
seawater filter packages
Wastewater treatment plant 430 tonne/hour (t/h)
Water treatment system 1,300 t/h
Storage tanks - A total of 33 storage tanks
Figure. 1 Project Location
 3. Policy and Legal Framework
The regulatory framework that applies to the Project comprises national legislation, company-specific
policies, and guidelines, as well as international standards and guidelines, given the involvement of
international lenders. The key policy and legal frameworks are listed below:
 National Administrative Requirements:

- Noting the Government Regulation No. 22 of 2021, which has amended provisions of the
previous Indonesian Environmental Law, and was enacted in February 2021.
 International Standards and Guidelines, including:

- Equator Principles 4;
- International Finance Corporation Performance Standards; and
- World Bank Group Environmental Health and Safety Guidelines.

4. Scoping
A scoping exercise and identification of the Project activities and their key issues and potential
benefits was carried out. The Project and receptor interactions that were likely to lead to significant
impacts formed the focus of the detailed impact assessment in the ESIA. They are discussed in
Chapter 7 Environmental Impact Assessment, Chapter 8 Social Impact Assessment, and Chapter 9
Unplanned Events.

5. Baseline

5.1 Environmental Baseline

5.1.1 Geology and Soil Quality

The Project Site is located on relatively flat, coastal area, with the land ranging from between +0 –
+20 m above Principal Datum (mPD). The land portion can be divided into three distinct geological
strata:
 Area close to the shoreline: occupied by Gede volcanic rock layer (Qpg) with lava flows and
which provides a very high bearing capacity and resistance to tidal wave erosion;

 Intermediate area: occupied by an alluvium layer (Qa) consisting of pebble, sand, silt and mud;
and

 Farthest area from the shoreline: occupied by the upper Banten tuff layer (Qvtb)1.

Indonesia is prone to earthquakes due to its geographical position in an active tectonic zone. The
closest fault line to the Project is Meramang Fault, which is approximately 11 km away from the
Project Site. Although a number of earthquakes have occurred in the area, none have reached the
Project Site. The most recent earthquake occurred in 2020, with a magnitude less than 4.5 MMI
(Modified Mercalli Scale; scale level from I to XII, with Degree I (not felt) to Degree XII (extreme)).
Soil sampling was carried out in May 2022 across the Project Site and showed that national
(Government Regulation No. 22 Year 2021 or GR 22/2021) and/or international standards were
exceeded for the soil in some sampling locations for arsenic, barium and copper.

1
Soil Investigation Report (After Construction) for Land Preparation of Line Project. PT Tigenco Graha Pesada (2020)
The national GR 22/2021 regulations have three levels of contaminated soil criteria, A, B and C, with
Level A being the most significant and soil being managed as hazardous waste, whereas if detection
is equal to or less than Level C standard values, the soil can be used as base soil or backfilling.
Arsenic and barium detected in various, but not all, soil sampling locations for the Project were greater
than the Level C values but less than the Level B standard values of GR 22/2021. Based on the
regulation, such soils “can be managed using non-hazardous waste management techniques.”
While it is also noted that arsenic in various, but not all, soil sampling locations were greater than the
US EPA RSL for industrial soils, given that the detected concentrations are almost of similar
magnitude across the Site, with no detections exceptionally higher than the others, it is more likely
that the detected concentrations are naturally occurring background levels. Additionally, the US EPA
notes that some heavy metals, including arsenic, aluminium, iron and manganese, ‘are common
elements in soils that have background levels that may exceed risk-based screening levels’ (US EPA,
2021). Its presence in most of the soil bore locations indicate that the Site is not an exception and the
US EPA does not recommend performing response actions to go below the background levels.

5.1.2 Surface and Groundwater Quality

In general, the Project Site has a relatively flat topography with several river flows and overland flow in
the Project Site will directly lead to the sea. Lelean River is located in the north perimeter of the
Project Site and flows from east to west towards Sunda Strait. Another existing surface waterbody
surrounding the site is a man-made channel located in the southern perimeter of the Project Site.
According to the Regional Disaster Mitigation Agency (BPBD), Citangkil and Grogol District have six
and three points respectively that are prone to flooding.
Surface water quality sampling was conducted at two sampling points in 2017 for the AMDAL Report,
prior to site formation or any Project works, and identified several exceedances compared to national
regulations (GR 22/2021) which classifies water into four standards from Class I water that can be
used for drinking to Class IV water that can be used for irrigation or similar. The 2017 results
indicated some organic pollution but no parameters with concentrations of environmental concern and
water quality meeting Class IV water standards. Surface water sampling was later carried out at four
stations in June 2022and certain exceedances found at the sampling stations, with certain parameters
exceeding standards for Class IV waters. Interviews with the local community surrounding the Lelean
River in 2022 also indicated that local communities do not use its water for consumption nor daily
needs because the water quality is low and other data also indicated the majority of people in the
Cilegon area use bottled water and other sources of clean and drinkable water.
In 2020, LCI carried out groundwater sampling within the Project Site and found values for salinity,
chloride and sulphate decreased for most points after the land reclamation. When compared with
national standards (Minister of Health Regulation No. 32/2017), chloride values in 2020 were
exceeding standards for the majority of samples. Additional groundwater sampling at 17 stations was
carried out in June 2022 and found some exceedances compared to national standards in several
sampling locations.
Arsenic, barium and boron were detected at various locations across the site and exceeded one or
more adopted standards. It is noted that the same parameters were detected in the soil samples
collected, and due to the shallow and unconfined nature of the aquifer, it is currently inferred that the
presence of these elements in groundwater is a result of direct soil leaching, a transport mechanism
that is facilitated by tidal fluctuations (which is expected to be prominent in the site setting). A majority
of the onsite samples have arsenic concentrations (nine of 14 samples were in 10-2 mg/L range),
barium concentrations (eight of 14 samples were in 10 -1 mg/L range), and boron concentrations (11 of
14 samples were in 100 mg/L range) falling within the same order of magnitude thus indicating that
their presence in groundwater is likewise naturally occurring, with slight deviations accounted to tidal
variability.
.

5.1.3 Ambient Air Quality

Data collected for AMDAL suggested that the air quality at the six sampled stations complied with the
national standard (Annex VII of GR 22/2021). The principal sources of air emissions at the time (pre-
Project) were likely to be the existing industry and exhaust emissions from road transportation in the
area.
Two rounds of ambient air quality sampling were completed in 2022 – one in the wet and one in the
dry season. The wet season sampling was carried out at four stations during January and February
2022, and no exceedance was found. Dry season sampling was carried out in May and June 2022,
and the SO2 level in one sampling location during dry season exceeded the national standard.

5.1.4 Noise Quality

Data collected for the AMDAL Report suggested that the 12 sampled stations complied with the
national noise standard (KepMen LH No 48/1996).
Monitoring to international standards was conducted at three sampling points in January 2022. The
three sampling points were selected because they represent the residential area closest to the Project
Site. PS-01, PS-02 and PS-03 are 195m, 150m, and 181m respectively east of the Project Site
boundary. The background noise levels in general exceeded both the noise limits set out in national
standards and IFC guidelines, except for the background noise levels in sampling location PS-01,
which comply with both noise limits during daytime period, and in sampling location PS-01 and PS-03,
which comply with national KepMen LH No 48/1996 Noise Standard during night-time period.

5.1.5 Seawater Quality

Seawater quality sampling was conducted at ten stations for the AMDAL Report and compared to the
Appendix VI of GR22/2021. Sampling location SW4’s coliform level and sampling locations AL-1 to
AL-4’s copper level exceeded the national standard. Apart from the above, the other sampling points
complied with the national standard.
Seawater quality monitoring was conducted every six months in four sampling locations during 2018 –
2021. Several parameters exceeded the Appendix VIII of GR22/2021 for marine biota, including total
hydrocarbon and oil and grease.
Seawater quality monitoring was carried out in six locations at three elevations in June 2022. Total
Petroleum Hydrocarbons were in exceedance at six locations at three elevations.

5.1.6 Marine Sediment Quality

Marine sediment sampling was carried out in 13 locations in June 2022. Sediment quality results were
compared against Australian and New Zealand sediment quality guidelines (‘SQG’) 2 and it was found
there were no exceedances of ISQG-Low values. Based on the collected samples, sediment within
the proposed dredging area is characterised as composed of uncontaminated sediment.

2
Simpson SL, Batley GB and Chariton AA (2013). Revision of the ANZECC/ARMCANZ Sediment Quality Guidelines. CSIRO
Land and Water Science Report 08/07. CSIRO Land and Water.
<https://publications.csiro.au/rpr/download?pid=legacy:965&dsid=DS1>
5.2 Biodiversity Baseline
The Project Site sits within the terrestrial Western Java Rainforest Ecoregion and on the marine
ecoregion of Southern Java, as well as being within the Coral Reefs, Fisheries, and Food Security
(CTI-CFF) Implementation Area (although outside the scientific boundary of the Coral Triangle). In
addition, the Project falls within the Javan Coastal Zone Endemic Bird Area (EBA).
There are also six locally designated Protected Areas (PAs) found near the Project Site, both
terrestrial and marine, but all further than 10 km away. The closest PA is a Marine Nature Recreation
Park 12 km to the west, Pulau Sangiang (Sangiang Island).

5.2.1 Terrestrial Biodiversity

Eight terrestrial habitats/land cover types were identified within the Study Area: mangroves and
wetlands, shrubland/grassland, mixed plantation/ agricultural area, freshwater body, forest area, bare
land, residential area, and industrial area. Overall, the Project Site lies within an area that is
reasonably developed already, adjacent to an existing industrial site and with predominantly modified
habitats in the vicinity and limited areas of natural habitats close by.
Baseline information was collected for biodiversity for the AMDAL but with limited information and was
then supplemented by baseline biodiversity surveys in June 2022, which took place after the land
reclamation and site clearance had occurred. The 2022 surveys identified 147 plant species from 41
different families. Fabaceae was the predominant family of plants with 21 species, followed by
Poaceae family with 19 species, and Cyperaceae family with 11 species. No flora species of potential
conservation significance were identified and a relatively high number of invasive and potentially
invasive flora species were also recorded, reflecting the relatively modified setting of the Project.
The 2022 baseline surveys also identified 166 fauna species across 69 families from the following
taxa: birds, mammals, herpetofauna, and insects. Of these, 14 species were considered to be of
conservation significance, including 12 bird species and two mammal species listed either under the
IUCN Red List of Threatened Species, or under Government Regulation 7/1999. No reptile/
herpetofauna or insect species of conservation significance have been identified for this Project.

5.2.2 Marine Biodiversity

Remote sensing analysis was used to help direct survey locations (details in Annex B1) and corals
were identified in five out of eight survey locations within the Study Area, however these were found
to be of mixed value. Coral areas comprised largely of hard coral (species belonging to Acropora,
Melliphora, Tubipora genera), dead coral, and algae, with the dominating hard coral types across
sites being massive corals, foliose corals, and encrusting corals.
The 2022 baseline surveys also did not identify any seagrass species at the eight sampling locations
within the Study Area.
Plankton, zooplankton, and macrobenthos sampling from the 2018 AMDAL and the RKL RPL
Monitoring Reports (2018-2021) has shown that there are mostly common and widespread species
that occur in the Study Area, which should not be adversely affected by Project activities. Marine
invertebrates like marine molluscs and crustaceans are also included in the macrobenthos category
and are of limited conservation significance and will not be significantly impacted by Project activities.
Pelagic fish around the Study Area have been identified through secondary data during the AMDAL
as well as primary data from interviews with fishermen. Many common species of Tuna, Mackerel,
and Sardinellas have been noted, which have different fishing seasons and abundances. A few shark
and fish species have been highlighted as potentially but generally unlikely to occur in the Study Area.
Marine mammals such as dugongs are unlikely to occur as seagrass habitats (used by dugongs for
foraging) are absent. The 2022 baseline surveys recorded one marine mammal species around the
Project Site - the common bottlenose dolphin (Tursiops truncates) (LC).

No sea turtles were recorded during the 2022 baseline surveys. No species of seabirds were
recorded during the 2022 baseline surveys, including the seabird species highlighted from desktop
review as being found in Important Bird and Biodiversity Areas (IBAs), EBAs and PAs around the
Project Site (for example, Christmas Frigate bird Fregata andrewsi, CR; and Milky Stork Mycteria
cinerea, EN).

5.2.3 Critical Habitat Assessment

As outlined in Annex B2 Critical Habitat Assessment, no Critical Habitat has been identified for this
Project, as per IFC PS6.

5.3 Social Baseline

The social baseline is based on primary and secondary data from the Project Site and additional
baseline studies. The information collected are based on the engagement with the communities from
Rawa Arum Village and Gerem Village in Grogol District, and Warnasari Village in Citangkil District
and concerned government departments. Rawa Arum Village and Warnasari Village are considered
to be primarily affected by the construction of plant and jetty, while Gerem Village will be affected by
the process of mobilization of heavy equipment during the construction phase.

5.3.1 Administrative Divisions, Demographics and Population

Indonesia’s territorial administration is divided by province, followed by regency/municipality (city),
district, and sub-district/village. Districts (urban village) and villages are the lowest government
administration. To ease the coordination within the administrative area, each sub-district village is
divided into hamlets called Rukun Warga (RW) and further broken down into neighbourhoods called
Rukun Tetangga (RT), typically consisting of 30-100 households depending on the size and density of
the area. Heads of village or sub-district are central figures in the study area, i.e., Warnasari, Rawa
Arum and Gerem Villages. They are responsible for implementing government development
programs, for example by distributing social assistance, selecting participants to receive social
programs, etc. The village/sub-district heads also have a role in conflict resolution involving
community members. Usually, community conflicts will be escalated to the police authority only if not
solved by the village/sub-district head. Another central role played by the village/sub-district head is
leading the decision-making process during the village development planning (Musrenbangdes).
The three (3) villages near the Project Site are some of the most populous in Grogol and Citangkil
Districts. The population in Rawa Arum, Gerem and Warnasari is generally gender balanced, with a
gender ratio of 105 in Rawa Arum, and 103 in Gerem and Warnasari. The population in Banten
Province is primarily Bantenese (47 %), Other ethnic groups include Sundanese (23 %) Javanese
(12 %), Betawi (10 %), and Chinese (1 %) 3. Most of the people in northern Banten are Javanese and
have previously migrated from the central and eastern part of Java. Based on the observation and
community interviews during the Scoping Site Visit in January 2022, local communities in Rawa Arum,
Warnasari and Gerem village belong to the Java-Banten ethnic group.

3
Suryadinata et al. (2003). Indonesia's Population: Ethnicity and Religion in a Changing Political Landscape. Institute of
Southeast Asian Studies.
The Central Bureau of statistics has classified religions into six (6) categories; Islam, Christianity,
Catholicism, Buddhism, Hinduism, Konghucu, and others4. Though secondary village data collection
and KIIs, ERM identified that people residing within the study area are predominantly Muslim, with a
small percentage of Christians, Catholics, Buddhists, and Hindus.
With the strong influence of Islam, prolonged ancient cultural activities/ceremonies are not commonly
practiced for people within the study area. For example, the fishers and farming communities do not
practice “sedekah laut/bumi”, traditional feast rituals during certain seasons that are commonly
practiced by fishers and farming communities in other parts of Indonesia. Community members often
consider these practices to be against their religious beliefs.
Cultural practices in affected villages are strongly related to Islam. During the annual commemoration
of the birth of Muhammad (“Mauludan”), the community prepares decorated foods such as cone-
shaped rice and distributes them to Islamic boarding schools.

5.3.2 Land Use and Land Ownership

The industrialisation process in the area began in the 1980s. The planned Project Site is within an
industrial complex that belongs to the state-owned enterprise, PT. Krakatau Sarana Infrastruktur (KSI)
under state land. LCI (the Project proponent) has obtained Building Right Title (Hak Guna Bangunan)
in 2021 from PT. KSI. With the Building Right Title, LCI has the right to use the land for 80 years.
Adjacent areas include community housing predominantly belonging to individual landowners, social
infrastructures belonging to local government, agricultural areas, and fishers’ dwellings. In Rawa
Arum, some parts of the agricultural land near the Project belongs to PT KSI and the Highway
Development Project. Some farmers still use their former land for agricultural activities with permits
from land owners. Two fishing locations, namely Tanjung Peni (Warnasari) and Lelean (Rawa Arum),
are also owned by PT KSI.
Land acquisition was carried out through an agreement with the landowner to buy and sell industry
designated land. There was one land dispute within the Project Site, which has been resolved as of
August 2022.

5.3.3 Livelihood and Economic Activities

The workforce participation level represents labour supply available to produce goods and services in
Cilegon City. At the level of Cilegon City, 9.68 % of the total active workforce was unemployed in
2019. The total workforce participation in 2019 reached about 62.74 %, although the female
participation rate was 33.6 % for women. A large portion of women in Cilegon City do not take part in
the workforce, with 45.1 % of women being housewives.
Provincial and regency/city minimum wage is regulated through Government Regulation no. 36 of
2021 on wages. The provincial and regency/city minimum wage is determined by few contributing
economic factors such as purchasing power parity, employment, wages, economic growth and
inflation. It is stated under the regulation that regency/city minimum wage must be higher than the
provincial minimum wage.
The provincial government of Banten has determined the provincial minimum wage for Banten
Province in accordance with the Governor of Banten Decree. The provincial minimum wage for
Banten in 2022 is IDR 2,501,203, while the provincial minimum wage in 2021 was IDR 2,460,996 5,

4
Central Bureau of Satistics. Glossary. Retrieved from: https://www.bps.go.id/istilah/index.html?Istilah_sort=keyword_ind
[Accessed February 2022]
5
Kompas. (2021). Daftar UMK Banten 2022: UMK Cilegon 2022 Ungguli Tangerang dan Tangsel. Retrieved from:
https://money.kompas.com/read/2021/12/02/121309526/daftar-umk-banten-2022-umk-cilegon-2022-ungguli-tangerang-dan-
tangsel?page=all [Accessed February 2022]
showing an increase of 1.63 % in the current year. The minimum wage for Cilegon City in 2022 has
been fixed at IDR 4,340,254.18, making it the highest in Banten province.
The majority of people within Cilegon city are working in agriculture, manufacturing industry and
services. As of 2020, a majority of female workers (87 %) are working within the service sector, and
about 12 % and 1 % of female workers are working in the manufacturing industry and agricultural
sectors respectively. Male workers are predominantly in the service sector and manufacturing
industry, while a smaller percentage works in the agricultural sector.
The agricultural sector remains the main activity of local people in most of Indonesia. The shift from
agricultural sector to manufacturing and services in Cilegon City shows that the local economy has
already shifted towards an urban and industry-driven economy.
Farming activities within the study area are not the primary income-generating activities for the
community. Farming activities in the affected villages are mainly seasonal agriculture which depend
on rainfall. The majority of land in the vicinity of the Project Site is used for manufacturing, leaving a
small percentage of land for agriculture.
Fishing is one of the local livelihoods in the area, although not the primary source of income of the
community. Fishing sites in Citangkil and Grogol are among the closest fishing areas to the Project
and access to fishing grounds may be impacted during construction and operation phases of the
Project however the impact will be quite limited due to the wide alternative locations for fishers. Two
fishing sites, namely Tanjung Peni and Lelean, are situated close to the Project Site. The Project
construction activities as well as operational phase and post operational phase will overlap with
fishing activities carried out by the fishers from those areas but impacts will be localized and
temporary, and expected to occur mainly during Jetty construction and dredging activities. As of
January 2021, there are 186 fishers registered in the community-based cooperative unit of Tanjung
Peni, and 136 fishers in Lelean. According to FGDs with Lelean fishers, fishing is not the primary
source of income for the community in Lelean. The participants have other jobs such as helpers, and
non-permanent jobs such as labourers in industrial sector and small traders.
Based on the survey conducted by the Statistical Bureau, there were 133 companies registered in
Cilegon City as of 20186. Chemical companies dominate the industrial sector followed by primary
metal companies, non-metal mining, metal goods, foods, engine and equipment repair and installation
as the top five industries. According to data from Gerem Village Office, a total of 34 companies
including LCI7 are located in Gerem Village, Grogol District8.
The poverty level in Cilegon in 2021 was 4, 24 %, which is lower than the poverty level in Banten
Province. According to the village profile data, a total of 575 people in Rawa Arum are characterized
as people living below the poverty line, amounting to 3.45 % of the village population.

5.3.4 Social Infrastructure and Services

Health facilities in the vicinity of the Project Site include maternity hospitals, community health
centres, integrated healthcare centres, pharmacy, and clinics. According to the data from Site, as of
2021, a total of 15 health facilities existed in Warnasari area and 14 health facilities in Rawa Arum
area, one health centre (Puskesmas) in Grogol district and two health centres in Citangkil. Based on
the data in Health Profile of Cilegon City (2021), several communicable diseases have been observed
in the area categorised as direct infectious diseases (i.e., tuberculosis, pneumonia, HIV-AIDS and

6
Statistics Office of Cilegon City (2018). Cilegon Municipality in Figures, 2018. Retrieved from:
https://cilegonkota.bps.go.id/publication/2018/08/16/16e6cbe31ff8ca9b02b71055/kota-cilegon-dalam-angka-2018.html
[Accessed February 2022]
7
Although the Project Site is located in Warnasari and Rawa Arum village, LCI office is registered in Gerem Village.
8
Gerem Village Office, 2022 (Unable to physically retrieve or take digital documentation for this data).
syphilis, and leprosy). Acute upper respiratory infections of multiple and unspecified sites are the most
common health issue in Grogol and Citangkil districts. It is noted that female have more health issues
than male in general except injury and skin related health problems in Citangkil District.
The literacy rate is the proportion of people aged 15 and above who can read and write, and is an
important indicator to assess how open a society is to education. It is noted that the literacy rate in
Cilegon City is higher than national and province levels and there is a 100 % school participation rate
for 7-12 years old children. There are a total of 8,835 school facilities in Banten Province. It is noted
that Warnasari has a limited education infrastructure compared to Gerem and Rawa Arum although
the populations in those three villages are similar.
Besides the formal education, the Government of Indonesia has also established vocational training
centres to provide job-specific technical training. These programs generally focus on providing hands-
on instruction, and can lead to certification. Vocational training programs are usually preferred by
community members who wish to work directly after graduating from secondary school.
There are six (6) vocational training centres in Banten Province and they are located in the areas with
high potential for industrial sectors.
As of 2016, 81.3 % of households had access to a proper source of drinking water in Grogol and
Citangkil District, forming the highest percentage of Cilegon City.
88.3 % of Cilegon City’s population has access to proper sanitation and Grogol District is one of the
districts with the best access to proper sanitation, with 93.5 % of the population having access.
Citangkil District remains above Cilegon City’s average, reaching a proportion of 91.3 %. It was
reported that some household still do not have lavatory system in Gerem.
In general, domestic waste management awareness is considerably low in the villages near the
Project Site. Based on desktop research, there are three waste facilities in Cilegon City, two of which
are in Warnasari9. It is noted that waste segregation is not commonly practiced and there are no
waste collection services for domestic waste from the community. There is an informal service to
collect the waste but there is no information on the final location of the collected waste disposal point
and the waste treatment. Community members usually throw waste on vacant land surrounding their
houses and burn it, or dispose waste into the river.
According to the field visit information, local communities have access to electricity and all areas
within Warnasari, Rawa Arum, Gerem are connected to the national grid facilities provided by PLN
(National Electricity Provider Company). It is noted that 98 % of household have an access to state
electricity company in Cilegon City.
Cilegon City has a high connectivity and it connects Java Island and Sumatera Island through Merak
Port; and it is also well-connected to Jakarta through Merak-Jakarta toll road. According to Cilegon
2020 data, 52.89 km out of 384.858 km of road in Cilegon City are in good condition, 273.140 km of
road are in moderate condition, 38.276 km are damaged and 20.582 km are heavily damaged in
2019. During holiday seasons such as Ramadan and Christmas, the traffic in the port area is
particularly high, causing heavy traffic jams.
In terms of sea transport, Merak port is located approximately 16 km from the Project Site. Port of
Merak is a major service provider for passenger and commercial ferry from Merak to Bakauheni. The
Roll on Roll off (Ro-ro) ferry is operated to transport passengers, cars, trucks, motorcycle from Merak
to Bakauheni. The port is also serving petrochemicals facilities, which are located in Cilegon City.

9
https://wastecinternational.com/en/facilities
There are several active civil society organizations and non-governmental organizations (NGOs) in
villages near the Project Site particularly women and youth associations.

5.3.5 Preliminary Indigenous People and Cultural Heritage Screening

According to ERM’s a preliminary screening of potential (IP) and Cultural Heritage (CH) near the
Project location, there is no finding on potential indigenous people and nationally recognized cultural
heritage sites within and near the Project Site. There is no indication that the community living near to
the proposed Project around Gerem, Rawa Arum, and Warnasari villages display the characteristics
of IP. There are religious monuments and burial sites in the villages around the Project Site.

5.3.6 Stakeholder Engagement

Stakeholder engagement was conducted across different administrative levels, subject to permissions
of responsible authorities. Scoping and ESIA engagement were undertaken in two phases in January
2022, and May, June 2022. ERM consultation team and LCI representatives conducted meetings and
consultations at the administrative levels and the village level.
Consultation involved face-to-face meetings with a range of stakeholders including a representative
for the Health Department, Environmental Protection Department, Head of Citangkil District, Village
leaders, fishers from two fishing pools, women, youth and community representatives from the Project
Area. The date, location, stakeholders of each meeting and engagement activities is summarised in
Table. 2.

Table. 2 Consultation Activities Undertaken during Scoping and ESIA

phases
Date, time Location Stakeholders and engagement activities
Scoping Stage
17 January, 2022; Warnasari Village, Citangkil ■ FGD with youth association and youth
11:00am District representatives
17 January, 2022; Gerem Village, Grogol District ■ KII with head of Gerem Village
13:00pm
17 January, 2022; Gerem Village, Grogol District ■ KII with head of Citangkil District
15:00pm
18 January, 2022; Warnasari Village, Citangkil ■ FGD with community leader and other figures
09:30am District from Warnasari Village, including fishers’
representatives
18 January, 2022; Rawa Arum Village, Grogol ■ FGD with Tanjung Peni fishers
11:00am District
18 January, 2022; Gerem Village, Grogol District ■ KII with fishers’ formal representative
14:00pm
19 January, 2022; Rawa Arum Village, Grogol ■ FGD with community figures from Rawa Arum
10:00am District Village
19 January, 2022; Rawa Arum Village, Grogol ■ FGD with women from Rawa Arum Village
12:00pm District
19 January, 2022; Gerem Village, Grogol District ■ FGD with community and youth leaders as
14:00pm well as local residents in Gerem Village
10 March, 2022; Rawa Arum Village, Grogol ■ Consultation with residents of Rawa Arum
14:00pm District
 Date, time Location Stakeholders and engagement activities
11 March, 2022; Gerem Village, Grogol District ■ Consultation with residents of Gerem Village
10:00am
11 March, 2022; Warnasari Village, Citangkil ■ Consultation with residents of Warnasari
14:00pm District Village
ESIA Stage
24 May,2022; Warnasari Village, Citangkil ■ Consultation with residents of Warnasari
10:30am District Village
21 June, 2022; Gerem Village, Grogol District ■ FGD with Lelean fishers
13:00pm
21 June, 2022; Gerem Village, Grogol District ■ FGD with women from Gerem Village
14:30pm
21 June, 2022; Gerem Village, Grogol District ■ KII with informal leader of Gerem Village
19:00pm
22 June, 2022; Health Department Office, ■ KII with representative of Health Department
9:00am Cilegon City Officer
22 June, 2022; Tamansari Village, Citangkil ■ KII with Village Chiefs of Gerem Village,
17:00pm District Warnasari Village and Rawa Arum Village
23 June, 2022; Rawa Arum Village, Grogol ■ FGD with youth from Rawa Arum Village
9:00am District
23 June, 2022; Rawa Arum Village, Grogol ■ FGD with women from Rawa Arum Village
16:00pm District
23 June, 2022; Gerem Village, Grogol District ■ FGD with youth from Gerem Village
19:00pm
24 June, 2022; Gerem Village, Grogol District ■ Consultation with residents of Gerem Village
10:00am
24 June, 2022; Environmental Protection ■ KII with Environmental Protection Officer
13:00pm Office, Cilegon City
24 June, 2022 Rawa Arum Village, Grogol ■ Consultation with residents of Rawa Arum
16:00pm District Village

25 June, 2022; Warnasari Village, Citangkil ■ FGD and KII with farmers from Gerem, Rawa
14:00pm District Arum and Warnasari villages

25 June, 2022; Warnasari Village, Citangkil ■ FGD with women from Warnasari Village
15:30pm District

The major concerns of the local communities regarding the Project among the population of the
Project Area are:
 Flood and Dust;

 CSR program;

 Employment, Training Support and Business Opportunities;

 Fisheries Activities Impact;

 Health Impact; and

 LCI communications.
Key questions raised during stakeholder engagement activities are described in Chapter 12. All
stakeholder concerns were used to inform this ESIA Study.

6. Impact Assessment
LCI developed a list of mitigation measures in the AMDAL (2022) (see Annex C). It is considered that
the mitigation measures listed in Annex C are existing embedded / in-place measures for the current
ESIA report. The ESIA has assessed the potential impacts and proposed additional mitigation
measures to reduce the level of the impact where necessary. Significance of impact refers to the
impact with existing embedded / in-place measures, while residual impact refers to the impacts after
implementing both existing embedded / in-place measures and the additional mitigation, management
and monitoring measures identified within this ESIA. These potential impacts are summarised in
Table. 3 (Environmental) and Table. 4 (Social).
In terms of environmental impacts, the residual impacts range from negligible to minor.
In terms of social impacts, managing community expectations is one of the key issues. Communities
have expressed their interest in the potential employment, training support and business opportunities
offered by LCI.
 Table. 3 Summary of Environmental Impacts
Project Phase Significance of Impact Significance of Residual Impact

Climate Change and GHG Emissions

Refer to the standalone Climate Change Risk Assessment (Annex G)
Air Quality
Site preparation and construction – Moderate at worst Minor at worst
Construction Dust (depending on the type of
construction activities)
Site preparation and construction – Negligible Negligible
Vehicular Emission from Induced Traffic
Operations NOx: Negligible to Minor Minor at worst
SO2: Negligible
PM10: Negligible
PM2.5: Negligible
VOCs/Benzene: Negligible
(Normal Operation),
Negligible to Moderate*
(RTO Bypass)
* For short-term VOCs
impact under “RTO Upset”
scenario only
Noise
Site preparation and construction Moderate Minor
Pre-commissioning and commissioning, Negligible Negligible
operations, and decommissioning
Surface Water
Site preparation and construction – Silt Minor Negligible
Laden Run-off
Site preparation and construction – Negligible Negligible
Domestic Wastewater from Workforce
Pre-commissioning and commissioning - Negligible Negligible
Hydrotesting and Flushing
Pre-Commissioning and Commissioning Negligible Negligible
- Chemical Cleaning and Passivation of
Equipment and Piping
Soil and Groundwater
Site preparation and construction Minor Negligible
Pre-commissioning and commissioning Minor Negligible
Operations Moderate Minor
Decommissioning Minor Negligible
Waste
Site preparation and construction Moderate Minor
Pre-commissioning and commissioning Minor Negligible
Operations Moderate Minor
Seawater and Marine Sediment
 Project Phase Significance of Impact Significance of Residual Impact

Site preparation and construction - Minor Minor

Reclamation
Site preparation and construction - Jetty Minor Minor
Construction
Site preparation and construction - Moderate Minor
Dredging
Operational - Wastewater Treatment Minor Minor
Plant Discharge
Operational - Cooling Water Discharge Minor Minor
Terrestrial Biodiversity
Site Preparation and Construction Phase Minor Negligible
– Employment of Labour and Presence
of Workforce
Site Preparation and Construction Phase Minor Negligible
– Transportation of Manpower,
Equipment, Materials to / from Site
Site Preparation and Construction Phase Moderate Minor
– Land Clearance (Soil and Vegetation)
and Site Levelling

Site Preparation and Construction Phase Minor Negligible

– Construction of Land Based
Infrastructure and Establishment of
Supporting Facilities
Pre-Commissioning and Commissioning Negligible Negligible
Phase – Flaring and Venting
Operational Phase - Transportation of Minor (for any potential Negligible
Manpower, Equipment, Materials to / invasive species)
from Site

Negligible (for noise

disturbance)
Operational Phase - Flaring and Venting Minor Negligible
Marine Biodiversity
Site Preparation and Construction Phase Minor Minor
– Reclamation of Coastal Land
Site Preparation and Construction Phase Negligible Negligible
– Construction of Seawater Intake and
Cooling Discharge Channel
Site Preparation and Construction Phase Minor Minor
– Construction of Marine Based
Infrastructure (Underwater Piling and
Marine Vessel Use)
Site Preparation and Construction Phase Negligible Negligible
– Dredging Activity (Direct loss)
Site Preparation and Construction Phase Minor Minor
– Dredging Activity (Dispersion and
 Project Phase Significance of Impact Significance of Residual Impact
deposition of suspended sediments
during dredging)
Site Preparation and Construction Phase Negligible Negligible
– Dredging Activity (Collision risk from
marine vessel use)
Operational Phase – Marine Negligible Negligible
Transportation of Equipment and
Materials To and From Site (Underwater
noise during transport of materials and
equipment)
Operational Phase – Marine Negligible Negligible
Transportation of Equipment and
Materials To and From Site (Shading of
seabed by constructed jetty)
Operational Phase – Marine Negligible Negligible
Transportation of Equipment and
Materials To and From Site (Collision
risk of marine vessels with marine fauna)
Operational Phase – Marine Minor Minor
Transportation of Equipment and
Materials To and From Site (Introduction
of invasive species)
Operational Phase – Operation of Negligible Negligible
Cooling System
 Table. 4 Summary of Social Impacts
Potential Impact / Issue Significance of Impact Significance of Residual Impact
Social and Cultural Structure
Presence of non-local workers and off- Moderate Minor
site housing – Construction
Presence of non-local workers and off- Negligible Negligible
site housing – Operations
Local Economy, Livelihood and Employment
Managing community expectations – Major Minor
Construction
Managing community expectations – Moderate Minor
Operation
Employment opportunities – Positive Positive
Construction and operation
Economic opportunities for local Positive Positive
suppliers and indirect employment –
Construction and operation
Opportunities to develop work skills and Positive Positive
experience – Construction and operation
Disturbance to fishing activities and Moderate Minor
fishers’ loss of income – Construction

Disturbance to fishing activities and Minor Negligible

fishers’ loss of income – Operation

Disturbance to Transportation
Road traffic – Construction and operation Moderate Minor
Marine traffic – Construction and Minor Negligible
operation
Infrastructure and Public Services
Presence of non-local workers – Moderate Minor
Construction
Presence of non-local workers – Negligible Negligible
Operation
Off-site housing – Construction Moderate Minor
Off-site housing – Operation Negligible Negligible
Waste generation and disposal – Minor Negligible
Construction and operation
Occupational Health and Safety
Health and safety of workers for all Moderate Minor
Project activities – Construction and
operation
Community Health, Safety and Security
Increased exposure to hazardous Moderate Minor
materials – Construction and operation
Security personnel attitude and use of Minor Negligible
force – Construction and operation
 Potential Impact / Issue Significance of Impact Significance of Residual Impact
Perceptions about flood risk – Moderate Minor
Construction and operation
Potential risk to fishers’ safety – Moderate Minor
Construction and operation
Increased risk of GBV - Construction Moderate Minor
Increased risk of GBV – Operation Negligible Negligible
Presence of non-local workers – Moderate Minor
Construction
Presence of non-local workers – Negligible Negligible
Operation
Indirect health impacts from Project Minor Negligible
activities – Construction and operation
Spread of COVID-19 – Construction Moderate Minor
Spread of COVID-19 – Operation Negligible Negligible
Increased transmission of STIs, including Moderate Minor
HIV/AIDS – Construction
Increased transmission of STIs, including Minor Negligible
HIV/AIDS – Operation
7. Cumulative Impact Assessment
One project, i.e., Warnasari Terminal and Supporting Facilities was identified in vicinity of the Project
Site. Since the details are limited, and the implementation of this project is yet to be confirmed at the
time of preparing this Report (October 2022), it will not be further assessed in the cumulative impact
assessment. AMDAL / ESIA of the other projects in vicinity of the Project are also unavailable.
Overall, it is concluded that no projects are eligible to be considered for cumulative impacts.

8. Environmental and Social Management Plan

Table. 5 summarises the mitigation measures for environmental and social aspects, as well as
unplanned events. For further details on the environmental and social management plan (ESMP),
refer to Chapter 10.

Table. 5 Summary of Mitigation Measures

Potential Impact / Existing Additional Monitoring Design Changes
Issue Controls Mitigation and Required# Recommended
Identified Management
Measures
Environmental Aspects
Climate change – ✓ ✓ X X
physical climate change
Climate change – X ✓ X X
transition risk
Air quality ✓ ✓ ✓ X
Noise ✓ ✓ ✓ (change of X
monitoring locations)
Surface water ✓ ✓ ✓ X
Soil and groundwater ✓ ✓ ✓ X
Waste ✓ ✓ X X
Seawater and marine ✓ ✓ ✓ (sample at three X
sediments depths; additional
parameters)
Terrestrial biodiversity ✓ ✓ ✓ X
Marine biodiversity ✓ ✓ ✓ X
Social Aspects
Social and culture ✓ ✓ ✓ X
structure
Local economy, ✓ ✓ X
livelihood and
employment
Disturbance to ✓ ✓ X
transportation
Infrastructure and public X ✓ X
services
Occupational health and ✓ ✓ X
safety
Potential Impact / Existing Additional Monitoring Design Changes
Issue Controls Mitigation and Required# Recommended
Identified Management
Measures
Community health and ✓ ✓ X
safety
Unplanned Events
Loss of primary ✓ ✓ X X
containment
(resulting in release of
toxic gas)
Fire and explosion ✓ ✓ X X
Loss of primary ✓ ✓ X X
containment
(spills and leaks)