Indonesia: Coral Reef Rehabilitation and Management II

Sovereign Project | 32176-013 Status: Closed

Latest Project Documents

Project Results



households with new or improved water supply



households with new or improved sanitation



kilometers of road that have been built or upgraded

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Project Name Coral Reef Rehabilitation and Management II
Project Number 32176-013
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1962-INO: Coral Reef Rehabilitation and Management II
Asian Development Fund US$ 33.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development - Water-based natural resources management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description ADB will finance Project activities in six districts in Riau, North Sumatra, and West Sumatra. These districts are: (i) Kota Batam, Kepulauan Riau, and Natuna in Riau; (ii) Nias and Tapanuli Tengah in North Sumatra; and (iii) Mentawai in West Sumatra. The Project will have two major components: (i) Institutional Strengthening and Project Management, which will comprise (a) strengthening of national and regional institutions in policy, strategy, and guideline formulation and resource planning and management; (b) establishment and strengthening of a network of coral reef information and training centers (CRITCs); (c) human resources development (HRD) and extension; and (d) Project management; and (ii) Community-based Resource Management and Development, which will involve (a) community empowerment, (b) community resource management, (c) community social services and infrastructure development, and (d) community livelihood and income generation.
Project Rationale and Linkage to Country/Regional Strategy

The coastal zone in Indonesia is a highly productive ecosystem that serves as an important base for the country?s economic growth. Coastal habitats play an important role in the daily lives of the people in in terms of livelihood, economic output, and food production. The Indonesian coastal and marine sector is beset with a number of problems that need to be addressed to ensure its sustainable development and management. Foremost among these are the two critical and interrelated issues of pervasive poverty in coastal communities and resource degradation. The proposed Project is the Acceleration Phase of a national coral healthy coral reef ecosystems and prosperous coastal communities.

The Project support the Government's priority on poverty reduction in coastal communities and the shift in focus from resource utilization to resource protection, conservation, and sustainable management. The Project is the second of planned three phases of multi-year initiatives funded by multiple agencies to strengthen the management and conservation of Indonesia's coral reefs and associated ecosystems. The Project is in line with the Government's Medium-term- Development Program (2001-2005) and the Guidelines of State Policy (1999-2004). It will assist the Government's poverty reduction thrust, which gives priority to developing income generating activities in the coastal zone and small islands particularly for small-scale fishers.


(i) Coral reefs and associated ecosystems rehabilitated, protected, and well-managed.

(ii) Lower incidence of poverty in coastal communities.

Project Outcome

Description of Outcome

1. Enhanced national and local capacity to manage coral reef resources and effectively managed priority reef areas

2. Increased income and improved living standards of poor coastal communities

Progress Toward Outcome

Live coral cover in most sites has increased by more than 2 percent per year. Few years after the tsunami and earthquake in Nias, Nias Selatan, and Mentawai, live coral cover has increased approximately 2.5 percent per year in these sites. In Natuna and Bintan, live coral cover has increased by about 2.7 percent per year and has achieved optimum level, while that in Batam and Lingga, the optimum level of about 50 percent live coral cover has been maintained. Live coral cover in Tapteng has also been maintained at 40 50 percent which is the optimum level for sites near a mainland like Tapteng. Fluctuations in coral cover among healthy coral reefs may be observed but these are considered as natural phenomena.

Socio-economic assessments from 2005 to 2009 show that there is great variation in the annual growth rate of per capita income in the project areas (from 24.9 percent in Bintan Timur to -4.4 percent in Pulau Tiga, Natuna). Per capita income in two locations (Bintan and Nias Utara) increased more than 2 percent per year, and the annual growth rate in 3 locations (Mentawai, Batam and Nias Selatan) increased below 2 per cent. Per capita income in Tapanuli Tengah, Natuna and Lingga decreased from 0.9 to 4.4 per cent per year. One of the reasons in the decrease in per capita income in Natuna is the decline in income coming from destructive fishing as a result of reduction of such activities. In the case of Lingga and Tapteng (Sitardas and Jago-jago), returns from alternative livelihood activities have not totally covered the lost income from capture fisheries due to the decrease in fish catch.

Two hundred and sixty four (264) social infrastructures have been provided to the 57 project villages, with most of them receiving 3 to 4 types of facilities, the most common of which are village information centers (56), MCS patrol boats (58), clean water supply (39), sanitation facilities (37) and jetty/wharf (33). The information centers in many villages are not only being used by the LPSTKs but by the other sectors of the community as well like the village head, the women groups and other projects. Technical and input assistance have been provided to more than 7,000 persons. EA estimates that a total of 7,200 persons could be assisted by the end of project implementation period in 31 December 2011. This performance, as against the target of 10,000 people, could be near the maximum level that the project could attain. The 7,200 persons that could be assisted by the end of project implementation period would represent about 99 percent of these fishing dependent households.

Implementation Progress
Description of Project Outputs

Component 1: Institutional Strengthening and Project Management

Output 1 - National and regional governments strengthened in the development of policies, strategies, and guidelines for sustainable coral reef management.

Component 1: Institutional Strengthening and Project Management

Output 2 - Network of coral reef information and training centers (CRITCs) established

Component 1: Institutional Strengthening and Project Management

Output 3 - HRD and extension programs developed and implemented

Component 1: Institutional Strengthening and Project Management

Output 4 - Project activities implemented on time

Component 2: Community-Based Resource Management and Development

Output 1 - Coastal communities organized and empowered for coral reef management

Component 2: Commmunity-Based Resource Management and Development

Output 2 - CRMPs formulated and implemented by organized communities

Component 2: Community-Based Resource Management and Development

Output 3 - Community social infrastructure facilities and services provided to coastal communities at project sites

Component 2: Community-Based Resource Management and Development

Output 4 - Livelihood and income-generating activities established and operated by coastal communities in target areas

Status of Implementation Progress (Outputs, Activities, and Issues)

- The Ministerial Decree No. 17/2008 Conservation Areas in Coastal and Small Islands has been issued on September 2008.

- Strategic Plans on Coral Reef Management (Renstras) have been issued by the Bupatis in six districts and are being implemented through the District Medium-Term Development Plans (RPJMDs) and various marine resources management activities such as the Marine Management Areas (KKLDs) and local MCS.

- The government regulation on Fisheries Resource Management has been issued through PP 60/2007.

- Local ordinances (PERDAs) have been passed in Natuna, Tapteng, Bintan, Mentawai, Batam, Sumbar and Kepri. That of Nias Selatan has been approved by DPRD and has been submitted to the governor for notification.

- Detailed Coral Reef Management Plans (RPTKs) have been prepared and are being implemented in 57 villages (under 8 project districts).

- SK Bupati delineating MMAs in 7 districts have been done. MMA Plans have been prepared in Nias Selatan, Tapteng, Mentawai, Batam, Bintan and Natuna.

- A national and 8 regional CRITCs have been established.

- Reef health and socio-economic surveys are being conducted regularly as planned. CREEL is now operational in all districts.

- Institutional Assessment completed. A Comprehensive Training Plan prepared and submitted to ADB and was approved in 2007. About 1,500 personnel of MMAF, LIPI and other agencies have been trained on coral reef management; About 400 NGO staff and 800 personnel from the private sector have also been trained.

- Community groups have been formed in 57 coastal villages. More than 7,800 people from coastal communities have participated in formal trainings conducted by PMO, RCUs and PIUs on coral reef management and livelihood development. In addition to these, NGOs and LIPI also provided formal trainings involving 800 and 150 people in coastal communities, respectively.

- site-specific coral reef resource surveys are being done regularly in 17 sites. Moreover, coral reef health surveys are also being conducted annually by the district CRITCs in the DPLs of each of the 57 project villages.

- 7 KKLDs covering more than 130,000 ha of coral reefs and associated ecosystems have been declared through Bupati Decrees. Moreover, management plans have been prepared for these KKLDs. Community-based MCS are protecting portions of these KKLDs, particularly those within the village waters and in the DPLs.

- Community-based MCS is being implemented in all of the 57 project villages in 9 districts (originally 8 districts due to the subdivision of Nias); 75 percent of respondents in a 2009 survey say that destructive fishing activities have been significantly reduced. Discussions with community and Pokmas leaders reveal that known incidence of illegal fishing activities has decreased by more than 50 percent.

- 264 social infrastructures have been provided to the 57 project villages, with most of them receiving 3 to 4 types of facilities, the most common of which are village information centers (56), MCS patrol boats (58), clean water supply (39), sanitation facilities (37) and jetty/wharf (33).

- Technical and input assistance have been provided to more than 7,000 persons. EA estimates that a total of 7,200 persons could be assisted by the end of project implementation period on 31 December 2011.

Geographical Location The Project will be implemented in six districts in three provnces namely (i) Kota Batam, Kepulauan Riau, and Natuna in Riau Province; (ii) Nias Tapanuli Tengah in North Sumatra Province; and (iii) Mentawai in West Sumatra Province

Safeguard Categories

Environment B
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects The Environmental and Management and Monitoring Plan (EMMP) was submitted to ADB on 17 June 2005 and ADB comments were sent on 29 July 2005. Environmental specialist has been mobilized by PMO to assist implementation of EMMP vide letter from PMO in conjunction with EMMP implementation, dated 9/1/2007. Coordinator on CBM at PIUs have been assigned since February 2007 to take care of environmental monitoring and compliance with assistance of a Junior Consultant of PMO. Environmental specialist provided guideline and example of EMMP implementation, using case of micro-projects/social infrastructure which started at PIU Nias District with micro-projects subjected to environmental review. For the other 7 districts, PMO has listed micro-projects requiring environmental review and will adopt the Nias district model.
Involuntary Resettlement

The Project expects no activity that will require resettlement.

A Social Infrastructure Development Plan has been prepared by PMO and RPIUs. Although very unlikely, in case of resettlement issues occur, any decision to be reached shall take into consideration the local community's desires and aspirations.

Plan for monitoring the application of the monitoring criteria in consultation with village organization will be prepared by PMO and RPIUs.

The construction of social infrastructure facilities being monitored in light of ADB's Resettlement Policy and as part of the project implementation progress thru QPRs.

Indigenous Peoples

PMO has included in the project sites Tambelan islands for indigenous people in P. Laut, and Saibi Samukop and Saliguma in Siberut island for indigenous people of Mentawai

Monitoring mechanisms will incorporate consultation, participation and empowerment of indigenous people beneficiaries in Project activities including community-based law enforcement and microenterprise training.

Stakeholder Communication, Participation, and Consultation
During Project Design The Project will adopt the participatory process approach by which coastal communities will have the opportunity to organize themselves, with the assistance of local governments and Project facilitators, identify their specific needs, and plan and implement their community-specific resource management and livelihood programs based on their own needs.
During Project Implementation The village-level coral reef management plan - Rencana Pengelolaan Terumbu Karang (RPTK) in all project districts have been socialized and are being implemented. Village-level patrol operations have been on-going in all of the 57 project villages which have been provided with traditional MCS boats. Regular routine patrol activities around its marine protected area (DPL) are being conducted in Tapanulit Tenga. Public awareness campaigns are regularly being aired thorugh the community radio. Of the 52 RPTKs (village-level coral reef management plans) 19 RPTKs have been validated and endorsed byt he village heads. Of the 52 target villages, 44 have prepared their draft CRMPs (RPTKs), with 19 endorsed by their village heads. For the district level RPTKs, 3 have been drafted for approval by Bupatis (mayors) for submission to the local parliament and enactment into local regulation. Community-based MCS groups (POKMASWAS) have been organized and trained in each project site. These groups have also been provided with their respective patrol boats. About 5,500 persons have received technical and financial assistance for livelihood development. Monitoring mechanisms incorporate consultation, participation and empowerment of indigenous people beneficiaries in Project activities including community-based law enforcement and microenterprise training.

Business Opportunities

Consulting Services International and domestic consultants will be engaged through an international consulting firm in accordance with ADB?s Guidelines on the Use of Consultants and other arrangements acceptable to ADB for the engagement of domestic consultants. The selection of consultants will follow the Quality and Cost-based selection system. A total of 553 person-months of consulting services, consisting of 55 international and 498 domestic person-months, will be required for effective Project implementation. The consultants will support PMO and the PIUs in two broad areas: (i) Project management; and (ii) technical advice in specific areas like coral reef management, community MCS, community development, policy planning, training and extension, database management, and public communications.
Procurement PMO will be responsible for the procurement of all goods and services under the Project. All services, supplies, and equipment to be financed by ADB will be procured in accordance with the ADB Guidelines for Procurement. All goods to be purchased through local competitive bidding (LCB) will be procured in accordance with Government procedures acceptable to ADB. Equipment and materials for packages valued at $500,000 or more will be procured through international competitive bidding (ICB) procedures. Some supply contracts estimated to cost less than $500,000 and certain specialized items will be procured using international shopping (IS) procedures. Minor items of equipment and materials costing less than $500,000 will be procured through direct purchase (DP). The civil works packages are estimated to cost less than $1 million each and will therefore be awarded on the basis of LCB procedures among prequalified contractors in accordance with the Government's standard procurement procedures. The EA and IAs have been advised of the need to maintain transparency and accountability, as required under ADB's Anti-corruption Policy, in procuring goods and services.

Responsible Staff

Responsible ADB Officer Mohammed Nasimul Islam
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Ministry of Marine Affairs & Fisheries
*Mr. Agus Dermawan
MMAF Building 9th Flr., Jl. Medan Merdeka Timur No. 16, Jakarta, Indonesia


Concept Clearance 08 Mar 2002
Fact Finding 06 May 2002 to 25 May 2002
MRM 24 Jun 2002
Approval 06 Dec 2002
Last Review Mission -
PDS Creation Date 06 Dec 2006
Last PDS Update 03 Mar 2011

Loan 1962-INO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Dec 2002 10 Feb 2003 07 Nov 2003 31 Dec 2009 31 Dec 2011 01 Aug 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 42.00 Cumulative Contract Awards
ADB 33.00 06 Dec 2002 35.95 0.00 98%
Counterpart 9.00 Cumulative Disbursements
Cofinancing 0.00 06 Dec 2002 36.74 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory
Title Document Type Document Date
Coral Reef Rehabilitation and Management Project Phase II Project/Program Completion Reports Nov 2012
Coral Reef Rehabilitation and Management Project, Phase II Reports and Recommendations of the President Nov 2002

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Coral Reef Rehabilitation and Management Project Phase II: Indigenous Peoples Development Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Aug 2004

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

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