SEML Phase 2 Non-Technical Summary

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SEML PHASE 2 NON-TECHNICAL SUMMARY tt he

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28 May 2025 SE-MSHE-GNS-PRO-0002 Rev. 0 Issued for Use

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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Approval Position

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Prepared By

Date 24 March 2025

Reviewed By Approved By

Revision History Rev. 0

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Approved By

Issued For For Use

PT Supreme Energy [ML/RB/RD] Equity Tower 16th Floor, Sudirman Central Business District (SCBD) Lot 9 Jl. Jendral Sudirman Kav. 52 - 43 Jakarta 12190, Indonesia P +62-21-2788 2222 F +62-21-2788 2333 W www.supreme-energy.com

COPYRIGHT: The concepts and information contained in this document are the property of PT Supreme Energy [ML/RB/RD]. Use or copying of this document in whole or in part without the written permission of PT Supreme Energy constitutes an infringement of copyright.

The Supreme Energy project companies - PT Supreme Energy Muara Laboh, PT Supreme Energy Rajabasa and PT Supreme Energy Rantau Dedap are independent companies developing geothermal projects in Sumatra, Indonesia. Based on the agreement of the shareholders of the individual project companies, the Supreme Energy companies are managed in an integrated way in order to maximize the synergies in terms of use of resources and organization of their core and supporting processes.

Consequently, important portions of the documentation body developed and applied within each company (manuals, procedures, description of processes, guidelines etc.) are common to all project companies. The applicability of each document to one or several project companies is reflected in the reference of each document.

Any document applicable to PT Supreme Energy Muara Laboh contains the characters “ML” in the document reference.

Any document applicable to the PT Supreme Energy Rajabasa project company contains the characters “RB” in the document reference.

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Any document applicable to the PT Supreme Energy Rantau Dedap project company contains the characters “RD” in the document reference.

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If a document applies to all three Supreme Energy companies, the term “Supreme Energy” may refer to any and all of these companies.

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Within each document, for any reference to the project company, the term “Company” will be used. This term will refer to those companies the names of which are referred to in the document reference. The term Project refers to the project developed by the Company.

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Table of Contents 1. INTRODUCTION 2. PROJECT SUMMARY 3. APPLICABLE STANDARDS 4. ESIA METHODOLOGY 4.1. ESIA Screening and Scoping 4.2. Environmental and Social Baseline 4.3. Environmental Impact Assessment 4.4. Social Impact Assessment 4.5. Cumulative Impact Assessment 4.6. Risk Assessment for Unplanned Events 5. SCREENING AND SCOPING 5.1. Screening and Categorisation 5.2. Scoping 5.2.1. Environmental and Social Resources/ Components 5.2.2. The Project Area of Influence and the Project’s Key Receptors 6. STAKEHOLDER ENGAGEMENT 6.1. Identification of Stakeholders 6.2. Stakeholder Engagement before ESIA Phase 2 Scoping 6.2.1. Engagement Process in Phase 1 Project 6.2.2. Grievance Mechanism 6.3. Land Acquisition and Compensation 6.4. Stakeholder Engagement during ESIA Scoping 6.5. Future Stakeholder Engagement 7. ENVIRONMENTAL BASELINE 7.1. Topography 7.2. Geology and Soil Conditions 7.3. Climate and Meteorology 7.4. Greenhouse Gas 7.5. Ambient Air and Noise 7.6. Odour (H2S) 7.7. Noise 7.8. Hydrology 7.9. Water Quality 7.10. Water Quantity 7.11. Landscape Values and Visual Amenity 7.12. Waste Management 8. BIODIVERSITY BASELINE 9. SOCIAL BASELINE 9.1 National and Regional Context

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9.2 Local Context 9.3 Affected Household 9.4 Indigenouse People Screening Assessment 9.5 Human Rights Assessment 10. ENVIRONMENTAL IMPACT ASSESSMENT 10.1 Air Quality Assessment 10.2 Greenhouse Gas Emissions 10.3 Noise Quality Impacts 10.4 Soil Quality Impacts 10.5 Water and Sedimentation 10.6 Biodiversity and Ecology 10.7 Waste Management 10.8 Traffic Management 10.9 Climate Change Considerations 10.10 Monitoring and Compliance 11. SOCIAL IMPACT ASSESSMENT 11.1 Economy and Employment 11.2 Infrastructures 11.3 Local Perceptions 11.4 Community Health and Safety 11.5 Occupational Health and Safety 12. ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN 13. CONCLUSION

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INTRODUCTION

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PT Supreme Energy Muara Laboh (hereinafter referred to as “SEML’’ or “the Project Owner”), a joint venture of PT Supreme Energy, INPEX, and Sumitomo Corporation, is the Owner/Developer of the Muara Laboh Geothermal Power Plant located in Pauh Duo District, Solok Selatan Regency, Western Sumatra Province. The geothermal development area is located in Liki Pinangawan Muara Laboh Geothermal Working Area (WKP), South Solok Regency, West Sumatra Province. The geothermal WKP area has a size of 22,110 ha. Based on SEML’s reserve assessment, WKP Liki Pinangawan Muara Laboh has a prospect of geothermal reserves estimated at 250 MW.

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SEML is looking to develop the Phase 2 geothermal power plant facility (hereinafter referred to as “the Project”) with an extra 87.7 MW net (or 91.2 MW gross) capacity operating in conjunction with the current Phase 1 geothermal power plant together generating a total development of approximately 172.7 MW net (or 180.4 MW gross). The total land area required for the Muara Laboh Geothermal Power Plant development is 223 ha, in which the area of land acquired for the Phase 1 is 181.5 ha and the area of land acquired for the Phase 2 is 41.5 ha as measured by the National Land Agency (Badan Pertanahan Nasional/ BPN) for land certification purpose.

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To ensure regulatory compliance, the Project Owner has commenced the process of obtaining all necessary approvals and certification from the Government of Indonesia (GoI), including approval of a regulatory environmental impact assessment (Amdal) from the Minister of Environment and Forestry as competent approval authority for the Project. , the Project Owner has hired a consultant to undertake the Environmental and Social Impact Assessment (ESIA) for the Project to comply with applicable standards.

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The AMDAL and ESIA studies aim to assess potential impacts of the expansion Project on the environment, biodiversity, cultural heritage and socio-economic development of affected areas, and to propose measures in order to avoid, reduce or mitigate significant negative impacts against the applicable standards.

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PROJECT SUMMARY

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SEML currently operates a geothermal power station at Muara Laboh with a capacity of 89.2 MW gross. Development of the new Phase 2 will result in a capacity increase by 87.7 MW nett or 91.2 MW gross. In general, Muara Laboh geothermal project facilities can be divided into six (6) main groups:

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1. Expansion of the existing wellpad ML-H to allow for additional production wells.

2. Construction of a new wellpad ML-K for re-injection wells; 3. Construction of additional pipe network system i.e., a 2-phase fluid pipe network system and a 1-phase fluid pipe network system, which will run alongside existing road facilities with the exception of Wellpad ML-K where new road will be laid to connect it with the existing access road near wellpad ML-E. Road is required for inspection and pipe maintenance purposes; 4. Construction of a new Geothermal Power Plant (PLTP) using Dual Flash Steam Cycle Technology; 5. Construction of supporting facilities for the development of the new geothermal fields/power plant etc., such as Project offices, worker accommodation camp, domestic water supply and processing, runoff water management, additional temporary storage area (TPS) for hazardous and toxic waste (B3), waste water treatment, material warehouse, warehouse for chemicals, workshops, fire extinguishing systems, electricity supplies, emergency power generator, new explosive bunker, and 6. Drilling of production and injection wells at wellpads ML-D, F, H, and K

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The project activities for Geothermal Power Plant and its facilities in the Phase 2 development are summarized below.

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Table-1 Project Activities for Phase 2 Phase Activities Pre-Construction  Coordination and Agreement  Permit  Land Acquisition Process  Financing Construction  Mobilisation of Equipment and Materials  Site Preparation  Access Road and Bridge Preparation  Well Drilling and Well Testing  Construction and Modification of Production and Supporting Facilities  Pipe Installation  Storage and Laydown Areas  Power Supply  Water Supply  Waste Management  Hazardous Materials Management  Workforce and Accommodation at Construction Phase Operation  Production Target  Production Process  Maintenance and Security  Power Supply  Water Supply

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 Waste Management  Management of Emergency Conditions in Wastewater Treatment Plants (WWTP)  Workforce and Accommodation at Operational Phase  Facility Closure and Decommissioning  Facilities Demolition/Dismantling  Land Rehabilitation, Revegetation, and Land Return  Labour Release

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Decommissioning

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APPLICABLE STANDARDS

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Indonesian Legislation and Regulatory Framework ADB’s Safeguard Policy Statement (2009) ADB’s Social Protection Strategy (2001) ADB’s Gender and Development Policy (2003) ADB’s Access to Information Policy (2019) The Equator Principles IV (2020) IFC’s Performance Standards on Environmental and Social Sustainability (2012) and Applicable Guidance Notes (2019) World Bank Group EHS Guidelines (2007) IFC/WBG (2007) Environmental, Health, and Safety Guidelines for Geothermal Power Generation IFC/EBRD Workers’ Accommodation: Processes and Standards. A Guidance Note by IFC and the EBRD (2009) Japan Bank for International Cooperation (JBIC) Guidelines for Confirmation of Environmental and Social Considerations (May 2022) Nippon Export and Investment Insurance (NEXI) Guidelines on Environmental and Social Considerations in Trade Insurance (June 2022)

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The Phase 1 Project was funded by international lenders, and Phase 2 will follow the same scenario, and as such, this ESIA has been prepared in accordance with the local regulations and internationally applicable standard/guidelines. The applicable standards for this ESIA includes:

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ESIA METHODOLOGY

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The environmental and social impact assessment has undergone the following steps: (1) literature review, (2) screening and scoping, (3) understanding and setting the Project Area of Influence (AoI) and study area, (4) stakeholder engagement, (5) baseline studies, (6) assessment of environmental and social impacts, (7) assessment of cumulative impacts and (8) risk assessment of unplanned events. Overall, the environmental and social impact assessment of the Project is undertaken following a systematic process that evaluates the potential impacts related to physical, biological and socio-economic and cultural environment; identifies preliminary measures that the Project will take to avoid, reduce, mitigate, offset or compensate for potential adverse impacts; and identifies measures to enhance potential positive impacts where possible.

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4.1. ESIA Screening and Scoping

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The ESIA Screening and Scoping studies were undertaken to identify potential environmental and social impacts and risks of the Project to be assessed in the ESIA study. The studies are to identify and prioritise impacts that are likely to be significant, while avoiding the need for detailed assessment of impacts that are deemed unlikely to be significant or can be effectively addressed through the implementation of appropriate management or mitigation measures. The ESIA document has identified and tabulated potential environmental and social interactions of the Project which are likely to have positive impacts or significant negative impacts, and these were ‘’scoped in’’ for further assessment in the ESIA study. Interactions which are unlikely to have significant negative impacts, or no interactions expected, are ‘’scoped out’’ and accordingly not considered for further assessment in the ESIA study.

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4.2. Environmental and Social Baseline or

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Information provided in the baseline of the ESIA study setting primarily refers to the following references:

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SEML Environmental Impact Assessment/Amdal Addendum Document (2023)

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SEML ESIA (2017)

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SEML Environmental & Social 6-Monthly Report 2022 to 2023

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Environmental Management and Monitoring (RKL/RPL) Report 2021 to 2023

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SEML Environmental & Social Management Plan (ESMP) document

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Livelihood and Restoration Plan, 2024

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Cumulative Impact Assessment

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Climate Change Assessment

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Desktop reviews of secondary data obtained from reliable information sources.

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The impact assessment for the Project has been conducted and reported within the ESIA document respectively. The impact assessment is based on the methodology detailed in the document and used to assess the various aspects within the Construction and Operations phases of the Project, and the potential impacts generated from these Project activities. The impact assessment has been conducted taking into consideration the relevant Government of Indonesia (GoI) laws, regulations, decrees and circulars as well as international standards, guidelines, and requirements. Mitigation measures have been tabled and a residual impact assessment noted.

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4.3. Environmental Impact Assessment

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The various aspects are extensively interrogated during the impact assessment and certain activities and their corresponding impacts are either scoped into an assessment or out of the assessment, based on the information available at the time of compiling the ESIA.

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4.4. Social Impact Assessment

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4.5. Cumulative Impact Assessment

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The socio-economic baseline is presented within the document and the assessment of socioeconomic impacts resulting from the pre-construction, construction, operation, and decommissioning of the Project is based on the baseline data and estimation. The impact assessment methodology is assessed and detailed within the respective chapters of the ESIA report.

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The Cumulative Impact Assessment (CIA) is undertaken in order to gain an understanding of the Project’s overall contribution to impacts within Project boundary and Area of Influence (AoI). Thus, The Project Proponent determines the degree to which multiple projects or other activities are contributing to these overall cumulative impacts on Valued Environmental and Social Components (VEC’s).

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The objectives of the CIA are to use the outcomes of the preceding chapters of the ESIA to determine spatial and temporal boundaries, identify VEC’s and all development and external natural and social stressors affecting them; recognise and identify how the Project, along with other existing and future projects may contribute to cumulative impacts on the predicted future condition of the identified VEC’s; and develop measures to ensure these are avoided and/or minimised to the greatest extent if possible.

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4.6. Risk Assessment for Unplanned Events

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An unplanned event assessment is proposed to cover potential impacts that may arise from unplanned events during the life of the Project. These unplanned events may be considered separately from routine and non-routine activities as they occur as a result of an unexpected incident, which may happen during the Project’s normal construction and operational phase activities. These events could be attributed to accidents, technical failure, human error, or as a result of natural phenomena.

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The ESIA screening and scoping studies for the Project presents the basis of identifying potential environmental and social impacts and risks of the Project assessed in this ESIA study. The purpose of the ESIA screening and scoping studies is to identify and prioritise potential impacts that are likely to be significant, while keeping in view potential impacts that are deemed less likely to be significant or can be effectively addressed through the implementation of appropriate management or mitigation measures.

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SCREENING AND SCOPING

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5.1. Screening and Categorisation

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Based on a high-level description of the Project and its associated facilities and initial findings from the ESIA Scoping site visit undertaken in November 2023 and desktop studies, the Project has been screened and categorised against Indonesian regulatory requirements on Environmental Impact Assessment (EIA), IFC Environmental and Social (E&S) Categorization, and the ADB’s Safeguard Policy Statement.

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The Project is categorised as Category B under the IFC E&S Categorization.

The Project is categorised as Category B under the Environmental Categorisation of ADB’s SPS. The Project is categorised as Category C under the Involuntary Resettlement Categorisation of ADB’s SPS. The Project is categorised as Category C under the Indigenous People Categorisation of ADB’s SPS.

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The scoping process of the Project is undertaken to identify key environmental and social impacts and risks potentially associated with the Project. The scoping process aims to identify potential interactions between the Project and resources/components within the Project Area of Influence (AoI). Interactions that are likely to have impacts will be “scoped in” whilst others will be “scoped out” of the ESIA process. The scoping process includes Understand Project features, schedule, and activities; Gathering information on bio-physical environment and socio-economic conditions of the study area; Identify environmental and social resources/components in the study area; Identifying the Project AoI; Determining potential interactions between the Project activities and environmental and social resources/components by means of a scoping matrix; and Classifying potential interactions as likely or unlikely to have a negative/positive impact by taking into consideration the information gathered on Project activities and existing conditions of resources/ receptors.

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5.2.1. Environmental and Social Resources/ Components

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Environmental and social resources or components are essential constituents of the physical, biological, and socio-economic environment. These also encompass vital elements such as air, water, soil, vegetation, wildlife, fish, birds, terrain, and land use. These components are particularly sensitive receptors, susceptible to the potential impacts of a proposed project or the cumulative effects of multiple projects. This comprehensive identification is crucial for a thorough understanding

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Project Area of Influence (AoI)

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The AoI identifies the physical areas where potential interactions between the Project and the environmental and social resources/components/receptors of the AoI may occur. The AoI varies depending on the nature of the Project and its receptors. As per IFC PS 1, the AoI includes direct and indirect impact zones. The direct impact zone is the area where the project is located, where the project activities are implemented (including laydown area and access roads) and where unplanned but foreseeable development impacts caused by the Project may occur. The indirect impact zone is the area where indirect impacts of the Project may occur (e.g., on biodiversity or ecosystem services on which the livelihoods of 'affected communities' depend).

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The Key Receptors are components around the project area that susceptible to the Project’s impact.

The Project’s activities have the potential to cause impacts on nearby sensitive receptors. The document details the list of key receptors as well as associated potential impacts.

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Stakeholders are individuals and/or organizations that have interest in or are impacted by and/or have influence over an organization's projects, products, services, or surrounding. Stakeholder engagement is the activity and/or process of identifying, analyzing, planning, and implementing actions to influence stakeholders.

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The goal of stakeholder engagement is to align mutual interests, reduce risks, improve results, lead to better decisions, and benefit organizations and their stakeholders.

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Identification of Stakeholders is identifying the closest and potentially most affected key groups who may be involved, influenced, and/or affected by the project as early as possible in the planning stage.

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Stakeholder identification is the first step in the stakeholder engagement process, which determines the actors and key groups who may be involved, influenced, and/or affected by the project.

Stakeholder identification is an ongoing process throughout project lifecycle, giving people a chance to give feedback on future designs and further improve the benefits.

A systematic procedure should be established to gather feedback, relay it to the project for decisionmaking, assess proposed adjustments, and provide the necessary updates to stakeholders.

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5.2.2. The Project Area of Influence and the Project’s Key Receptors

Project Key Receptors

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of the potential environmental and social implications associated with the project or its cumulative impacts.

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Stakeholder analysis is a method for identifying project stakeholders and their influence by considering stakeholder interest and stakeholder impact as its two primary components.

Understanding stakeholders who have a high or low impact on the project and those who have a high or low interest in the project can be facilitated throughout the project life cycle through stakeholder mapping. This allows SEML to effectively communicate with all project stakeholders.

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6.2. Stakeholder Engagement before ESIA Phase 2 Scoping

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The method of stakeholder analysis (SEP, 2021), the communication channel to the stakeholder is in line with the communication principle of SEML policy.

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SEML has been actively involved in engaging with stakeholders in Muara Laboh since 2008. Since this time, they have conducted consultations with diverse stakeholders at the local community level, regional government, and central government to develop and execute the exploration implementation plan starting in 2010. The engagement activity has been consistently implemented to acquire support and trust from stakeholders involved in different SEML activities.

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6.2.1. Engagement Process in Phase 1 Project

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The 2017, ESIA document (Phase 1) describes the social studies process, including social conditions and impacts, land acquisition, employment, stakeholder involvement, and grievance handling. Stakeholder involvement includes consultation processes, as well as participation from various levels of stakeholders in the project's planning and operational activities.

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6.2.2. Grievance Mechanism

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From Phase 1 to the current Phase 2 Development Plan, SEML maintained regular communication with the surrounding community, both directly and indirectly affected, through forums organized by SEML and community representatives. SEML has prepared grievance redress mechanism that has been discussed with local governments, cultural community groups, representatives of vulnerable groups, representatives of affected households, and NGOs. Regular direct meetings with national and local governments are held to establish good two-way communication channels regarding SEML operations.

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6.3. Land Acquisition and Compensation

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The land acquisition process consists of multiple phases, with SEML performing the initial phase and PLN conducting the transmission line phase. Land acquisition for the Phase 1 and 2 Projects was conducted under the "willing buyer-willing seller" arrangement. Compensation payments have been provided to all affected households in accordance with the agreement, which exceeds the market price and is estimated to be around ten times the value of the tax asset in effect at the time the acquisition was executed.

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In conjunction with the preparation of the 2023 Amdal Addendum (for Phase 2 project), SEML conducted consulation with relevant stakeholders. SEML is responsible for coordinating the environmental approval process, the determination of work areas for geothermal development, the issuance of business permits for geothermal utilization, and the assessment of the suitability of space utilization activities.

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6.4. Stakeholder Engagement during ESIA Scoping

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6.5. Future Stakeholder Engagement

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ENVIRONMENTAL BASELINE

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Addressing issues raised in the AMDAL addendum process for Phase 2 and SEML's social profiling activities, SEML provides inclusive grievance redress procedures and CSR initiatives, with various activities targeted at vulnerable households and women's groups.

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The Environmental Baseline aims to provide an overview of the existing environmental conditions within and around the project area. This will include an assessment of baseline environmental conditions related to the project’s climate and meteorology, greenhouse gas, hydrology, ambient air quality, noise levels, topography, geology, land-use, waste management, surface and groundwater quality, as well as soil quality.

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7.1. Topography

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The Muara Laboh Geothermal Power Plant Project Phase 2 Development project area (Solok Selatan District Area) is characterized by approximately 69% high angle slopes of >40º which is considered steep and therefore prone to landslides. The 15% of the area is classified as flat slopes.

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7.2. Geology and Soil Conditions en

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Land Attribute

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Based on rainfall data 2013 – 2022 from SEML Rainfall Station, the rainfall average is 4,950 mm/year with an average of 412 mm/month. The study area has a potential for very high level of rain erosivity.

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Rock Formation

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The project area location is located in fault zone characterized by faulting and is directly linked to an active volcano. The South Solok Regency is situated along the Sumatran Fault, often referred to as the Great Sumatran Fault System, and is more commonly recognized as the Semangko Fault. This fault is still active today.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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SE-MSHE-GNS-PRO-002 Rev. 0

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The historical condition of seismicity around the project area indicates that since the project is situated along the Muara Laboh Graben Fault, which is connected to the Great Sumatran Fault zone, this demonstrates that the region is an area with a reasonable high seismicity activity, which is designated as Zone 5.

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Seismicity

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Soil Quality

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Based on the latest (Third) AMDAL assessment, the soil quality around the project area is dominated by only one soil type, namely Lithic Cambisol.

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Climate and Meteorology

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Temperature

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The project area region is known to have temperatures ranging from 18.3 to 19.7 degrees Celsius on average. Temperatures are greater throughout the months of April through June than they are during any other month. On the other hand, the temperature variation between the months is not particularly significant.

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Humidity

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Humidity around the project area is relatively significant/high. The highest monthly humidity event happens in November while the lowest monthly humidity happens at June.

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Rainfall

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Rainfall is constantly present throughout the year within the project area. The months of January through May are typically considered to be the rainy season. There is not a single dry month throughout the year and there is an average rainfall of 412 millimetres/month. The month of February showed the highest rainfall, while the month of July showed the lowest rainfall. According to the classification developed by Schmidt and Ferguson, the climatic type of the location where the activity takes place is climate type A.

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Wind Speed and Wind Direction

Natural Hazards

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In general, the predominant wind direction comes from the southeast and south, with speeds ranging between 0.5-2.1 m/s and 2.10-3.6 m/s, particularly in the months of January through April. With speeds ranging from 0.5 to 2.1 m/s and 3.50 to 5.70 m/s, wind gusts from the north are observed to be the most prevalent throughout the months of May and June, with the exception of the Southeast and South directions.

According to the 2012-2032 South Solok Regency Regional Spatial Planning (RTRW) Technical Document, probable hazards in South Solok Regency include earthquakes and volcanic eruptions.

Some of the regions susceptible to natural calamities include:

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7.4. Greenhouse Gas

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The Greenhouse Gas emission current baseline represents existing emission from the project boundary site prior to construction and operation phase of Phase 2 Development. According to Equator Principle IV, it is mandatory for the Project Proponent to do monitoring and public reporting if the total project’s emission exceeds 100,000 tCO2/year. However, following the IFC Performance Standard 3, it is stated that the threshold of 100,000 tCO2/year is reduced to 25,000 tCO2/year.

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7.5. Ambient Air and Noise

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Ambient air, Noise and Odour monitoring are conducted and compared respectively pertaining to the relevant government and international standards.

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Ambient air quality, odour and noise data were taken from the results of the RKL-RPL Implementation Report for the second semester of 2022 and the first semester of 2023.

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According to The Third AMDAL Addendum for Muara Laboh Phase 2 (2023), additional monitoring locations for Phase 2 Development were added.

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Existing Source of Air Emissions

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Ambient Air Quality

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Ambient Air Quality monitoring is conducted in accordance with relevant government and international regulations (Appendix VII PP Number 22 of 2021 and the WBG EHS General Guidelines). These monitoring activities took place at various predetermined locations.

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Refer to the SEML Third Addendum Amdal (2023), from the Environmental Management and Monitoring Plan, it is stated that SEML will continue the semesterly air quality and noise monitoring with additional monitoring points start from January 2024.

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The ambient air quality data collected throughout the project establishment, on average are lower than the standards that has been set by Indonesian and international regulations, indicating that the ambient air quality around the SEML power plant is in good quality.

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Genset Emission Quality

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Generator emissions are monitored in accordance to relevant regulations. Based on the results of monitoring throughout the project establishment, the quality of generator emissions meets the environmental quality standards of local government and international.

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Pauh Duo, Sungai Pagu, Koto Parik Gadang Diateh, and Sangir Districts are areas that are prone to earthquake disaster.

An area that is prone to volcanic eruptions is Sangir District which originates from the eruption of Mount Kerinci.

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

SE-MSHE-GNS-PRO-002 Rev. 0

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SEML PHASE 2 NON-TECHNICAL SUMMARY

In general, the generators at PT SEML locations are not required to be monitored, as they are designed for emergencies and have an operating duration of less than 1,000 hours per year.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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SE-MSHE-GNS-PRO-002 Rev. 0

Odour (H2S)

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7.6.

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During the initial flow of a geothermal well, there is a possibility of the accumulation of NonCondensable Gases (NCG) with a H2S concentration. There will be also continuous H2S emission from the cooling tower stacks during geothermal power plant operations. These could be potentially cause a disturbance in terms of odor and health. The H2S dispersion modelling allows the identification of the potential distribution of H2S emissions towards sensitive receptors in the surrounding area of the SEML Project during the SEML operation. H2S concentration model was conducted using AERMOD.

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Technical Approval

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The AERMOD H2S dispersion modelling was used as reference in the Project Permitting for Emission. Using the model, The Technical Approval for Fulfilling SEML's Emission Quality Standards (letter from the Director General of PPKL No. ) for each emission source was obtained.

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H2S Criteria and Assessment

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Emissions from the Geothermal Power Plant process produce Hydrogen Sulphide (H2S) which has the potential to cause health effect and a distinct and unpleasant odour, depending on the concentration and duration of exposure.

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The project compliance is in accordance with international and Indonesian standards for emissions and ambient air quality. The international standards refer to the guidelines published by IFC and/or the Air Quality Guidelines for Europe, published by the WHO in 2000.

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Emission Standards

Ambient Air Quality Standards

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Emission is routinely monitored according to relevant regulation and permit. The project compliance is in accordance with The Ministry of Environment and Forestry (MoEF) Regulation No. P15/2019 concerning Emission Standards for Thermal Power Generation Activities, Appendix V specifies 30 mg/Nm3 as emission standard for Hydrogen Sulphide (H2S) from a geothermal power plant. There is no applicable IFC emission standard for H2S from a geothermal power plant and therefore only the national emission standard applies.

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Cooling Tower Emission is monitored in accordance with relevant regulations, and based on monitoring results conducted, cooling tower emission meets the environmental quality standards.

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Cooling Tower Emission Quality

Ambient air quality is monitored accordingly to relevant regulation. The project compliance is in accordance with Government Regulation (PP) No. 22/2021 on Implementation of Environmental Protection and Management. This regulation does not specify an ambient air quality standard for

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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SE-MSHE-GNS-PRO-002 Rev. 0

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H2S; hence the relevant WHO Standard applies. The WHO and USEPA air quality guideline for hydrogen sulfide is 0.15 μg/m3 (0.1 ppm) for an average concentration over 24 hours.

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Occupational Exposure Standards

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Occupational Exposure is monitored against Minister of Manpower Decree No. 5/2018 Attachment III on Workplace Safety and Health standards (TLV for workers is 1 ppm for a maximum of 8 hours exposure). The American Conference of Governmental Industrial Hygienists (ACGIH) sets a threshold limit value of 1 ppm as an 8-hour time weighted average (TWA) and a 15 min short-term exposure limit (STEL) of 5 ppm. Concentration considered Immediately Dangerous to Life and Health (IDLH) is set as 100 ppm.

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Odour Standards

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Odor is monitored in accordance with Minister of Environment Decree No 50/1996 of regarding Odour where hydrogen sulfide concentrations should not be allowed to exceed 0.02 ppm.

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WHO standards of Air Quality Guidelines for Europe (WHO, 2000) mentioned that hydrogen sulfide concentrations should not be allowed to exceed 0.005 ppm over a 30-minute averaging period.

Odour monitoring is substantial in order to prevent odour related grievances that may occur in geothermal areas.

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Current H2S in Emission and Ambient

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H2S in Emission

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The GOI threshold for H2S emission from the cooling tower stack is 30 Nm/m3. The stack height and stack design have been calculated so the emission and ambient concentration will fulfil the required threshold. In Phase 1, stack diameter is m with height of m above ground. The Phase 2 electricity production will be of similar capacity (89.2 MW gross for Phase 1 and 91.2 MW gross for Phase 2) with stack design is diameter m and stack height is m above ground. While very low, the baseline/background concertation of H2S has been taken into account within the designing of the modelling.

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Occasionally there will be well testing conducted to measure performance of a geothermal well through the use of Atmospheric Flash Tank. The test will be conducted by opening a well with 0 to 100% opening for a short period of time and therefore would not contribute significantly to the ambient air quality.

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The release of steam into the atmosphere from the AFT stack can cause Non-Condensable Gas (NCG) emissions, the majority of which is CO2 gas. The estimated maximum NCG content in steam is with CO2 level of around in NCG, NH3 level of around in NCG, and H2S level of around in NCG (or H2S level is around of steam). Thus, the H2S content is relatively small. Emission from AFT during geothermal well testing operation is also non-permanent. It is operated in a non-regular period. The emission from AFT can be classified as very minor due to the duration of the well testing period. The AFT for the most part will not be in operation outside of well testing.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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SE-MSHE-GNS-PRO-002 Rev. 0

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SEML conducts 6 monthly monitoring of H2S concentration for both ambient and emission. The impact of Phase 1 power plant operation on H2S concentration to the ambient air has been measured for several years. The results are compared to GOI and WHO requirements.

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H2S in Ambient

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Since Phase 2 has almost similar production capacity, Phase 2 is expected to contribute similar concentration of H2S and would not be expected to exceed the 25% of the WHO Guideline for health protection at sensitive locations (WHO AAQS-Surround threshold).

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H2S Modeling of H2S Concentration in Ambient Air

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The H2S modelling has incorporated recent actual data acquired during routine monitoring in the calculation. A technical study was completed and approved in July 2023 for a Steam Rate of kg/second and NCG estimated maximum design scenario. Additionally an additional H2S modelling study was conducted using an actual NCG value scenario. Both studies were conducted using the meteorological processor AERMET and dispersion model program AERMOD.

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H2S Modeling Results

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The AERMOD View model will be used to forecast the concentration of H2S in the ambient air and the predicted concentration will then be compared to the ambient standard. The results of the H2S modelling study provides a list of scenarios where sensitive receptors across the modelled area.

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The AERMOD modelling conducted provided results for both real case scenario and maximum design scenario. The results are then compared against GOI regulations and WHO standards.

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Modelling using the real scenario ( kg/s steam rate and ) shows that there is no potential odour exceedences when compared to thresholds based on health for GOI (1 ppm) and for WHO (0.1 ppm). Also no potential of exceedance for odour threshold based on GOI (0.02 ppm), however there are potential for exceedance to 7 receptors for between 2 to 4 days per year when compared to WHO’s odour threshold of 0.005 ppm.

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Modelling using the design scenario kg/s steam rate and NCG ) indicates no exceedances within the thresholds of GOI (1ppm) and WHO (0.1 ppm) for health. For odour, the design scenario, however, indicates potential odour dispersal to 33 receptors when compared to GOI’s threshold of 0.02 ppm with an occurrence between 1 to 8 days per year, while, when compared to WHO’s threshold of 0.005 ppm, all receptors might have potential odour exceedance with occurrence between 1 to 103 days per year.

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7.7. Noise Noise level measurement was conducted at the same location as ambient air quality sampling. The monitoring level is monitored against Minister of Environment Decree No. Kep.48/MENLH/II/1996, the standard noise level for work environments in industries, trade, and services as well as WBG EHS General Guidelines (for both day and night). In general the noise value consistently remains below the quality requirement at all times.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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SE-MSHE-GNS-PRO-002 Rev. 0

River System

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The hydrological condition around the project area can be observed using remote sensing images.

The hydrological condition depicts the overall dimension and attribute of the surrounding river system. In general the riverbed comprises substrates of rocks, sand, and stones, while the surrounding vegetation predominantly consists of small trees, shrubs, graminae, and ferns. The surrounding river system exhibits no discernible human disturbances, barring potential impacts from wellpad operations. Some human disturbances, particularly stemming from plantation and agricultural activities, were discerned.

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7.8. Hydrology

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The primary river system consists of three rivers namely: Bangko Hitam River, Bangko Putih River and Liki River.

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Sediment Quality

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The sediment quality across the project area is primarily tied to rainfall and erosion rate. The project is categorized to have high level of rain erosivity.

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The amount of concentrated sediment entering the water bodies will cause shallowing of the river and drainage. The large amount of sediment that concentrates and enters water resource has an impact on the shallowing rivers or drainage channels. Based on sedimentation rate scale criteria, the study area is classified as having very good quality in controlling the sedimentation rate.

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7.9. Water Quality

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SEML is committed to the methodology and and compliance to water discharge quality standards.

There are two sources of wastewater, condensate wastewater and domestic wastewater. Both have potential impact towards the natural water quality, however both are managed and monitored accordingly to relevant regulations (as per imposed in the AMDAL and Technical Justification document).

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Throughout various phases of the project, both surface water and groundwater quality are comprehensively monitored. The monitoring location include Bangko Putih river, Bangko Keruh river, Bangko Hitam river, Liki river, and community waterwells. The surface water quality is monitored in accordance with PP No 22 of 2021 Attachment VI for Class 2 River and ground water is monitored in accordance with Minister of Health Regulation Permenkes No. 2 Year 2023 Attachment Chapter II.2

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Surface Water Surface Water component is a mandatory management as per detailed in SEML’s environmental documents. The project area is surrounded by Bangko Keruh river, Bangko Putih river, Bangko Hitam river, and Liki River. Based on the Environmental Management and Monitoring Plan, SEML has developed mitigation plan to avoid water pollution. Additional monitoring points have been added per SEML’s fourth Addendum AMDAL.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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SE-MSHE-GNS-PRO-002 Rev. 0

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Groundwater

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Groundwater quality parameter component is not mandatory as per detailed in SEML’s environmental documents. Observations are still carried out and monitoring results are compared to relevant regulations.

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Monitoring Results

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Lab analysis results for groundwater monitoring indicate that conditions for groundwater quality is in good condition. Based on the monitoring results, all concentrations monitored are within the relevant threshold and meet the quality standards.

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Well Water

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Environmental component concerning well water quality during operational phase is not mandatory as per the AMDAL documents, however observations are still conducted. The threshold parameter for well water quality is compared to the Minister of Health Regulation (PerMenkes) No. 2 of 2023 regarding Environmental Health, Annex I Chapter II Table 3 Parameters for Hygiene and Sanitation Needs. The mitigation and monitoring plan for well water quality is based on indicators for clear water. Monitoring locations for clean water quality are at the inlet and outlet of the clean water treatment plant.

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Monitoring Results

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Based on the monitoring results throughout the project, the condition of the water before and after treatment meets the quality standards of the Indonesian Ministry of Health Regulation No. 2 of 2023, Annex Chapter II Table 3. This indicates that the treatment of clean water at the Water Treatment Plant (WTP) has been conducted effectively.

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7.10. Water Quantity

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SEML requires a water supply for production and supporting operation needs including drilling activities during Phase 2 development. Geothermal electricity generation activities use water in the form of river water originating from the Bangko Jernih river to fill the cooling tower basin initially.

Afterwards, the tower basin will be filled with condensate originating from the condenser. SEML is not using well water / groundwater for their current Phase 1 operation. Deep well water will be used to supply domestic water for Temporary Labour Camp used during Phase 2 construction and the relevant permit has been obtained. All necessary permits has been obtained prior to the start of Phase 2 construction.

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The results of water monitoring throughout the project period has indicated that in general, surface water quality is in good condition. The chemical parameters show that all concentrations monitored are within the allowed threshold.

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Monitoring Results

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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SE-MSHE-GNS-PRO-002 Rev. 0

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Visual landscape inventories involve the identification, categorization, and documentation of areas perceived as "visually sensitive." These assessments aim to provide a comprehensive understanding of the visual characteristics of a landscape, considering elements such as scenic beauty, cultural significance, and ecological value. Through this process, the goal is to assess and manage the visual impacts of various activities, ensuring the preservation and enhancement of landscapes that hold visual importance.

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7.11. Landscape Values and Visual Amenity

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The project is situated in the Solok Selatan regency, approximately 150 km southeast of Padang, the capital city of West Sumatra province, Indonesia. The Project is located in land that was previously used as a tea plantation and is adjacent to the Kerinci Seblat National Park (Taman Nasional Kerinci Seblat, TNKS) which is a UNESCO world heritage site (Tropical Rainforest Heritage of Sumatera / TRHS). The project aligns with the Great Sumatran Fault along the southwestern coast of Sumatra. Positioned within the Barisan Mountain range at an elevation of approximately 1,500 masl.

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7.12. Waste Management

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According to the SEML Stage-2 Presentation during ESIA Study, as of 28 July 2023, the Additional Main and Supporting Facilities for Stage-2 are situated within the confines of the Stage-1 AMDAL / ESIA. Approximately 41.5 hectares are earmarked for Stage-2, with no anticipated involuntary resettlement. The overall impact of Stage-2 development is expected to be relatively minimal, considering that the Additional Main and Supporting Facilities lie within the pre-established Stage-1 AMDAL / ESIA boundary.

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SEML and its contractors engage in diverse activities, leading to the generation of various types of waste, such as solid waste, domestic liquid waste, industrial waste, drilling waste, produced water, and hazardous wastes. The waste is sorted at the source and disposed of using appropriate methods.

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Solid waste within the project encompasses materials from household activities, construction, drilling cutting, etc. Hazardous and toxic waste materials from SEML's operations, such as used oil, contaminated waste oil, oil filters, used batteries, fluorescent lamps, and printer cartridges, require careful management to prevent harm to people and the environment. Hazardous waste is properly managed as directed by the relevant regulations to prevent it from harming the environment and wildlife. This includes proper storage, proper transport of waste, and disposing of it in a safe and responsible manner.

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Personnel handling waste receive training, and waste data, including hazardous waste storage, nonhazardous waste records, and waste manifests, are documented. Regular inspections, facility inspections, and periodic internal audits ensure the effectiveness of the waste management procedures implemented (Waste Management Plan).

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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For efficient waste management, domestic solid waste from canteens, lodging facilities and offices needs to be separated into organic and inorganic components. Documentation/log based on the type and volume of waste will be maintained.

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Solid Waste

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The domestic solid waste generated comes mostly in the form of packing materials that are easily decomposed, for example food wrappers, drinks, mud bags, cement bags, and wooden/cardboard packaging. The domestic solid waste is temporarily stored at Domestic Waste Temporary Storage (TPS Limbah Domestik) and is hauled routinely to government final disposal by a transporter.

Domestic solid waste transfer is usually conducted once or twice per week.

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Liquid Waste

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Liquid waste, including domestic wastewater and manufactured waste from well testing, undergoes proper treatment at the Sewage Treatment Plant using a bio-fill and bio-reactor system or injected to an injection wells along with brine and condensate. Produced liquid waste from well testing, specifically brine water, is collected in water ponds, and directed to injection wells for pressure maintenance.

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The technical wastewater dispersion modelling study at river, approved through the Technical Approval of Fulfillment of Quality Standards for Disposal of Waste Water to SEML Water Bodies ( , indicates that the furthest point where the highest concentration of the observed condensate wastewater parameters (while is still within the regulated threshold values) is distributed is approximately 25 metres downstream of the outlet at Bangko Keruh river, while for domestic wastewater, the highest distribution is approximately 25 m downstream of the outlet at Liki river.

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Wetland

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The wastewater generated from geothermal main activities will be treated using the wetland system which consist of 5 wetland ponds (cells) with a total capacity of 1,230 m3. Condensate wastewater from either turbine condenser or cooling tower basin will be flowed by gravity into the wetland system and will be allowed to flow within the system before being discharged into Bangko Keruh river. The wetland is designed to treat up to 55 l/s (55 kg/s) of the condensate wastewater.

Furthermore, in an effort to preserve the environment, condensate wastewater is tested for environmental safety before being discharged into surface water.

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As informed on wastewater, condensate wastewater from the Muara Laboh PLTP process essentially meets quality standards and is of a good wastewater quality when it exits the cooling tower basin. Wetlands are used with the goal of anticipating future quantity and quality of condensate wastewater.

Internal Use Only

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SEML PHASE 2 NON-TECHNICAL SUMMARY

Ref:

SE-MSHE-GNS-PRO-002 Rev. 0

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As per the Waste Management Plan, hazardous waste from various areas includes the office, workshop, warehouse, clinics, and field. Examples of hazardous materials include cartridge ink, electronic waste, toner, used batteries, used cloth, hazardous contaminated waste, aerosol spray, light bulbs, liquid chemical cleaners, contaminated hazardous containers, used oil, oil filters, used solvent, resin waste, expired chemical waste, medical waste, expired pharmaceutical products, and infectious waste from clinics. Proper disposal and management protocols have been established to minimize risks associated with these hazardous materials.

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Hazardous Waste

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Hazardous waste is collected at the hazardous and toxic waste temporary facility storage and is hauled to a licensed treatment facility by a licensed transporter. The manifest is filled online through a government portal. SEML has entered MoU for final disposal of hazardous waste disposal with licensed hazardous material transporters and final treatment facilitators.

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The biodiversity data for this study refers to the SEML 6-monthly reports and RKL RPL report as well as SEML Biodiversity Documents. SEML has conducted routine environment monitoring every six months in compliance with its environmental permit, this includes sections on biodiversity. SEML also conducts biodiversity management and monitoring based on biodiversity documents such as Critical Habitat Assessment (CHA), Biodiversity Action Plan (BAP), etc.

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8. BIODIVERSITY BASELINE

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Introduction to Desk-Study Assessment

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The biodiversity desk-study assessment aims to identify general environments regarding existing conditions including species, habitats and important conservation areas in and around the project location that have the potential to become sensitive receptors before conducting a baseline survey.

The results of the desk-study assessment were verified through documents and secondary data reviews and also a field visit to ensure that the existing data was appropriate to field conditions at the SEML Project site.

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National Context Overview

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Indonesia is an archipelago made up of many islands of which most are populated. There are seven main biogeographic regions based on the largest islands and oceans surrounding them. There are plenty of biodiversity hotspots and ecoregions listed by World Wildlife Fund (WWF) in Indonesia.

Indonesia is considered one of a number of countries labelled “megadiverse” nations according to the Conservation International. It also ranks as one of the world's centres for agrobiodiversity of plant cultivars and domesticated cattle. About 12% of the world's mammals (515 species) are found in Indonesia, placing it second globally after Brazil in terms of fauna diversity. Indonesia ranks fourth in the world with 35 species of primates and around 16% of the world's 781 species of reptiles. In addition, 17% of the world's 1,592 bird species and 270 amphibian species are found in Indonesia, which is ranked fifth and sixth in the world, respectively.

Overview of Ecoregions

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With 490 terrestrial protected areas spanning 22,540,170.38 ha and 76 marine protected areas covering 13,529,197.66 ha, Indonesia has 566 national parks with a total area of 36,069,368.04 million ha. 43 National Parks, 239 Nature Reserves, 70 Game Reserves, 13 Hunting Parks, 22 Grand Forest Parks, and 103 Nature Tourism Parks are among the terrestrial protected areas. The local government oversees the 4,589,006.10 acres of marine protected zones. Indonesia has 88,495,000 ha of land covered by forests, many of which are lowland forests with a rich biodiversity.

The list of threatened species contains 140 bird species, 63 mammal species, and 21 reptile species.

Indonesia possesses 728 protected species, including 130 mammals, 390 birds, 48 reptiles, eight (8) fish, 20 butterflies, 12 molluscs, and nine (9) crustaceans (CBD, 2023).

In Sumatra, forest covers land up to and over 1,000 metres (altitude) across the Barisan Mountain Range. The mountains cover the entire length of Sumatra and are included in the ecoregion known as the Sumatran Montane Rainforests. The island is situated along the subduction zone that separates the Eurasian plate from the submerged Indo-Australian plate. Volcanic eruptions and

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frequent earthquakes are caused by continuous geological activity. The Barisan Mountain Range features 93 peaks that rise above 2,000 meters, the highest of which is Mount Kerinci at 3,805 meters. In the north, the gigantic Lake Toba is supported by the crater of a giant volcano that erupted around 75,000 years ago. The western slopes of the mountain range receive more rainfall than the rain shadowed eastern side. The average annual rainfall in the west surpasses 4,700 mm, whereas it is less than half that in the east.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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Sumatera region is home to some rare flora and fauna including the Panthera tigris sumatrae (Sumatran tiger), which are also found in the montane forests. The ecoregion supports the forestdwelling primates, including Symphalangus syndactylus (siamang gibbon), and Hylobates agilis (Agile Gibbon). Thirty-five restricted-range bird species live in this ecoregion, including two endemic species: Cochoa beccarii (Sumatran cochoa) and Carpococcyx viridis (Sumatran ground-cuckoo).

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The lower montane forests have a mixed flora that includes immigrants from when the island was connected to the Java and Borneo. These include species of Dipterocarpaceae, Bombacaceae, and Moraceae that grow in the lower montane forests and transition to species of Lithocarpus, Quercus, Castanea, Cinnamomum, Persea, and Litsea higher up. Cyathea tree ferns are common. The upper montane forest is characterized by conifers and species of Rhododendron and Vaccinium. Lichens, mosses, and liverworts add diversity. The subalpine zone is characterized by smaller trees of the upper montane forest, but also grasslands with Agrostis and Festuca grasses, rushes and sedges such as Juncus, Carex, Scirpus, and Cyperus in bogs, and a variety of small, colourful subalpine herbs. Five of the 16 species of the parasitic Rafflesia plants are found in Sumatra.

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Despite Sumatra's significant human population, the ecoregion retains large tracts of forest. Several of these are already legally protected. The protected area system covers nearly a third of the ecoregion's land area, but encroachment into the montane forests is rising, particularly as smallscale farmers who have been pushed out of the lowlands by huge plantations relocate here.

Sumatra's water sources are represented by the mountains, and conservation of the montane forests is critical for economic development and the survival of human settlements. Wildlife poaching is prevalent in certain areas, even to endangered species such as the tiger.

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Designated Protected Areas

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UN Environmental Programme World Conservation Monitoring Centre’s (UNEP-WCMC) World Database of Protected Areas indicates that Indonesia contains 733 protected areas, with 715 National designated and 18 International designated areas. According to overlaid result between project location with protected areas and Key Biodiversity Areas, there is only one (1) protected area in 50 km radius from project location, namely Kerinci Seblat National Park.

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Kerinci Seblat National Park is an area that has extraordinary importance in the conservation of biodiversity and natural ecosystems in Indonesia. This huge National Park has an area of almost 1.4 million hectares and is spread across four provinces on the island of Sumatra; Jambi, West Sumatra, Bengkulu, and South Sumatra. Most of the TNKS forest area is tropical rainforest which protects the existence of flora and fauna within it. Several types are listed as endemic and endangered species. The existence of this important value has made UNESCO declare Kerinci Seblat National Park a World Heritage Site since 2004.

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Kerinci Seblat is identified as an internationally recognized area. It is assessed as a Key Biodiversity Area (last assessed in 2023). This Key Biodiversity Area (KBA) has 7 species in total considered as “triggers”.

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Internationally Recognized Areas

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Kerinci Seblat is also identified as an Important Bird Area. Kerinci Seblat also designated as Important Bird Area (IBA) by BirdLife International under IBA criteria A1 (Globally threatedned species), A2 (Restricted-range species) and A3 (Biome-restricted species with an area 1,368,000 ha.

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Centres of Plant Diversity (CPDs) are areas identified globally to assist with the conservation of plant species. CPDs are administered by WWF and IUCN and cover 234 sites around the world (UN/WCMC, 2023). CPD's are important for the conservation of global plant diversity and are identified based not only on high irreplaceability of species, but also include high vulnerability of the area.

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Fauna and Flora Diversity

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Diversity of Fauna and Flora around the project area is monitored through SEML Camera Trap Monitoring, RKL-RPL reporting, 6-Monthly reporting as well as direct patrol.

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Legally Protected Species

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SEML has conducted the monitoring survey in 2024 to collect the information especially in the locations for Phase 2 development such as Wellpad ML-H, Wellpad ML-K, and Power Plant area.

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Ministry of Environment and Forestry Decree Number P.106 of 2018 regarding list of protected flora and fauna.

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SEML has carried out routine monitoring of flora and fauna every 6 months at three (3) monitoring points and camera trap installation points within and surrounding the Project area to ensure the presence of species, especially protected species. The most updated data available was from 2024.

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Species of Conservation Concern

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Based on the studies conducted in the Critical Habitat Assessment (CHA, 2024), there are four bird species that were categorized as threatened species on the IUCN Red List (one of them also categorized as an endemic species), 13 bird species were categorized as endemic species, and nine species were listed as migratory species. Of the mammalian taxa, there are 15 species which were categorised as threatened in IUCN Red List, where four of them are also listed as endemic species; and five of the endemic mammal species are not listed as threatened on the IUCN Red List.

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SEML conducted an invasive species identification and has developed invasive species monitoring study and management action. Species in this category are species that are confirmed as invasives and have a negative impact on native biodiversity. The study explored potential invasive species within a 100-meter radius surrounding SEML main project facilities. The study recorded 24 species categorized as invasive. SEML has developed the management priority recommendation for invasive plant species in Phase 2 Project Site.

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Invasive Species

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Natural and Modified Habitat Assessment

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A habitat assessment according to IFC PS 6 categorisation was carried out by analysing satellite images sourced from Sentinel-2. The assessment was carried out using rapid screening by identifying differences in canopy density. This identification is confirmed by the results of direct (ground-truthing) observation.

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Based on observations and information from SEML representatives, historically disturbed forest areas have been cleared by the community for coffee and cinnamon plantations.

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According to SEML AMDAL Third Addendum (2023), the Phase 1 and Phase 2 project sites are listed as Other Use Area (APL). The land use at the location of the planned activity is a former tea, coffee, and quinine plantation area owned by PT Pekonina, PT Tri Usaha Bakti, and community land. Currently, the areas of former tea, coffee, and quinine plantations are identified as shrubs (modified habitat).

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Ecosystem Services

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A screening of Ecosystem Services was undertaken to identify services that are important to community surrounding the project site. The screening assessment was conducted in three villages including Nagari Alam Pauh Duo, Nagari Pauh Duo Nan Batigo, and Nagari Persiapan Pekonina.

This assessment referred to existing information from SEML Ecosystem Services Assessment Report (2017) for Phase 1. According to the screening results, there are three ecosystem services within and surrounding the project site which include provisioning services, regulating services and supporting services.

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IFC PS6 requires SEML to identify priority ecosystem services and assess the impacts to those services. The prioritisation process is aimed to identify the project impacts that would be most likely to result in adverse impacts to affected communities and other beneficiaries. The prioritisation result showed that the ecosystem services identified as high priority or major priority were considered as Priority Ecosystem Services (SEML Ecosystem Services Assessment Report, 2017).

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Critical Habitat Assessment CHA studies were carried out in 2017 and 2024. The results of the assessment show that the project site and the surrounding habitat are critical habitat to several trigger species. The 2024 critical habitat assessment was carried out by SEML and referred to the IFC PS 6 Guidance Note (2019). The CHA also refers to several data sourced.

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IFC PS 6 requires identification of Ecologically Appropriate Area of Analysis (EAAA) to determine the presence of critical habitat for each species with regular occurrence in the Project’s area of influence, or ecosystem. The boundaries of an EAAA are determined by taking into account the distribution of species or ecosystems (within and sometimes extending beyond the project’s area of influence) and the ecological patterns, processes, features, and functions that are necessary for maintaining them. This approach ensures that all important biodiversity within the project footprint and linked surrounding habitats are taken into consideration.

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Ecologically Appropriate Assessment Area

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The CHA used KSNP as a discrete management unit (DMU) with the justification that this area is known to support a number of threatened and endemic species. KSNP area contains the habitat connected within a wide landscape that supports a number of threatened and endemic species, ecosystem, and the ecological patterns, processes, features, and functions that are necessary for maintaining them. In addition, KSNP is also designated as IUCN management area category II, key biodiversity area, and a part of a tiger conservation landscape area.

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A relevant socio-economic baseline of the project covers the socio-economic indicators at the regional level (South Solok Regency and Pauh Duo District) and an overview of the local context in Nagari Alam Pauh Duo and Nagari Pauh Duo Nan Batigo (PDNB).

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9. SOCIAL BASELINE

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Introduction

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SEML is a clean-energy enterprise focusing on geothermal power in Muara Labuh, South Solok regency, West Sumatera province. The environmental permit issued by regent government in 2013 allows SEML to explore and exploit the geothermal energy in WKP Liki Pinangawan Muara Laboh.

The project covers an area of 160 km2 situated in Nagari Alam Pauh Duo and Nagari Pauh Duo Nan Batigo and is estimated to be capable of producing 250 MW of electricity.

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For Phase 2, SEML has planned an additional production well and has been working on land acquisition of a total area of approximately 41.5 ha for power plant and its associated facilities, expansion of the existing Wellpad ML-H, and the development of a new wellpad, known as Wellpad ML-K with its access road. The residents of Nagari Alam Pauh Duo, Nagari Pauh Duo Nan Batigo, and Nagari Persiapan Pekonina villages will be directly impacted during the preparation and construction of the project.

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9.1 National and Regional Context

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The Presidential Decree No. 22 of 2017 on the General Plan of National Energy or Rencana Umum Energi Nasional (RUEN) indicates that geothermal is one of the seven renewable energy sources with estimated potential energy of 29,544 MW or 6.67% of the total renewable energy estimation.

SEML with its main business core in geothermal is committed to support GoI to achieve the target.

The Regional Regulation of West Sumatera Province No. 11 of 2019 on the General Planning of Regional Energy or Rencana Umum Energi Daerah (RUED) 2019-2050 issuance is strategized to facilitate land procurement for geothermal power plan in Muara Laboh.

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SEML project with its main business core in geothermal power is committed to support GoI in achieving its target of energy mixture and renewable energy. The regional government of West Sumatera aligned their regional strategy with RUEN. The issuance of Regional Regulation of West Sumatera Province No. 11 of 2019 on the General Planning of Regional Energy or Rencana Umum Energi Daerah (RUED) 2019-2050, in which one of the strategies is to facilitate land procurement for geothermal power plant in Muara Laboh, is in line with the SEML and GoI mission.

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9.2 Local Context

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The South Solok regency was established in 2004, as the proliferation of Solok Regency, through Law No. 38/2003 on the establishment of Dharmasraya, South Solok, and West Pasaman regencies. It is a land-locked area with the total land mass of 3,346.2 km2 and is bordered with Solok regency to north, Jambi Province to south, Dharmasraya regency to east, and Pesisir Selatan regency to west. South Solok has become a home to seven (7) districts including 47 villages (nagari) and 275 hamlets (jorong) with a total population of 188,649 people.

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The Phase 2 Development will be undertaken within WKP Liki Pinangawan Muara Laboh which is located in Pauh Duo subdistrict, South Solok regency, and as indicated will impact on three villages Nagari Pauh Duo Nan Batigo, Nagari Alam Pauh Duo and may also impact Nagari Persiapan Pekonina. The Nagari Alam Pauh Duo is the most populated village amongst the Pauh Duo subdistrict. BPS Pauh Duo (2023) shows that 46% of the population in the subdistrict settle in this village, followed by Luak Kapau Pauh Duo and Kapau Alam Pauh Duo at 20% and 17% respectively.

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Demographic Profile

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Pauh Duo is one of the most recent districts, established in 2007 based on the South Solok Local Regulation No. 2/2007 and has five (5) villages, which are Alam Pauh Duo, Nagari Persiapan Pekonina, Pauh Duo Nan Batigo, Kapau Alam Pauh Duo, and Luak Alam Pauh Duo.

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Within the last three years the number of Pau Duo residents has increased at a rate of 4% per year, except from 2020-2021 when the population grew significantly up 22%. Along with the growing population, the sex ratio and population density are expanding. In comparison with West Sumatera population, Pauh Duo district is within the less dense category.

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Ethnicity and Religion

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People of West Sumatera province are known for their robust bond as Minang ethnic groups (Rizaldi & Irawan, 2019), with 98% of the total population is Moslem (BPS West Sumatera, 2023). The data also indicates that 96% of people in South Solok are also Moslem, while other religions (Protestant, Catholic, Hinduism, Buddhism, and other beliefs) account for less than 4%.

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The province of West Sumatera is also known as ranah minang or Alam Minangkabau meaning the land of Minang people. The only ethnic census to be conducted was by BPS in 2011 and notes that Minang is one of the major ethnic groups or suku in Indonesia. The presence of Minang as a native ethnic group of West Sumatera is also confirmed through local regulation. The Minang is the dominant ethnic group in the population of Nagari Alam Pauh Duo, Nagari Pauh Duo Nan Batigo, and Nagari Persiapan Pekonina.

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Economy, Employment, and Livelihoods

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The South Solok economy has grown positively between 2020 - 2021. The income of South Solok regency is primarily dependent on the agricultural sector, including forestry and aquaculture.

Agriculture contributed the most of the location’s gross regional domestic product (PDRB), with other contributions coming from the wholesale & retail trade, construction, mining & quarrying, transportation & storage, and public administration.

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Education

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The majority of population of South Solok regency attended school. The BPS South Solok (2023) records that 57% of population are completing secondary and tertiary education, and 20% of the population did not finish primary education.

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Infrastructure

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South Solok has a total of 407 health facilities across the seven districts in 2021 (BPS South Solok, 2022). The only hospital is located in Sungai Pagu district. The health facilities reach up to hamlet/jorong level, known as Polindes and Posyandu. There are 88 Polindes and 257 Posyandu delivering services on maternal and children health programmes in remote hamlets in South Solok.

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Healthcare

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Diseases prevalence

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Diseases such as Tuberculosis (TB), Diarrhea, Dengue Fever (DB) and AIDS have become a serious health concern from the Health Department of South Solok. Particularly Tuberculosis, Diarrhea, and DB have had a number of cases amongst areas.

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BPS (2022) records the diseases prevalence in South Solok regency. Upper respiratory tract infection (ISPA) is identified as the most infectious disease in 2021, followed by gastritis and hypertension.

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Infrastructure and Public Facilities

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During the operation of Phase 1, SEML has produced Community SHE Security Plan, and it has identified Communicable Disease for project stage. In addition, SEML has conducted various activities for prevention awareness of HIV/AIDS to employees and school students as well as for Tubercolosis. The Project should commit to continue implementation program to prevent HIV/AIDS and other communicable disease. The Community SHE Security Plan is still implemented throughout Phase 2 of the project.

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The electricity in Pauh Duo district is supplied by the state-owned electric company (PLN ULP-Muara Laboh).

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The ration of electrification in South Solok regency indicates that the percentage of households accessing electricity is 99.57% (RPJMD, 2020).

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Clean Water Supply

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Clean water supply is provided by regional water management company (PDAM) with limited operation area. PDAM mainly operates in urban areas, while in subdistricts and villages areas, clean water supply is provided by Pamsimas. Other than the two water service providers, villagers fetch water from springs and streams.

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SEML used domestic water from treated surface water sourced from Bangko Putih river and from a water well. Permits to use those sources of water have been granted by the authorities.

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Most transportation within the South Solok regency is traversed and accessible mainly by inland transportation such as motorbikes, cars, trucks, and buses.

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Traffic and Transportation on Land and Marine

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According to the information from Solok Selatan Police Department, low awareness of traffic rules, and inadequate supporting infrastructure and facilities are the main reasons for traffic accidents in South Solok. There is limited public transport available in the area, and people tend to rely on their private vehicles such as motorbikes and cars.

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Traffic accidents occur quite often with victims being of working age. There are some hazardous locations where traffic accidents occur frequently such as Padang Aro, Timbulun, Bariang Sangir in Sangir, Lalu Pulakek in Sungai Pagu, and Pekonina in Pauh Duo district.

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SEML has established Journey Management Plan to manage mobilisation and demobilisation of equipment and personnel to/from site.

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The majority of areas in South Solok regency receive proper coverage, outside of specific service providers. There are however still blank-spots in South Solok regency, and more than half of them are situated in Sangir Batang Hari subdistrict. The most reliable telecommunication coverage areas are in Sungai Pagu and Pauh Duo subdistricts.

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Land Tenure and Land Use

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Land Tenure

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Land from the perspective of the Minang ethnic is one of the essential components in life. An area of land is a legacy passed down from generation-to-generation following maternal lineage within a clan (Suku). To Minang communities, land is considered a place to be born, to live, and to die.

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Unlike most of the traditional communities in Indonesia which operate on patriarch kinship system, Minang ethnic bases their kinship system on matriarch.

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A mamak (a woman’s oldest brother) is responsible for looking after and support his nephews and nieces, and one way to do so is through distribution of suku’s (clan’s) legacy including parcels of land. An area of land belongs to suku is known as tanah ulayat.

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Land Use

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The land in Pauh Duo district is mainly used for agricultural activities including rice paddy field, horticulture, and plantation. Rice paddy fields make up most of the total land use, of which almost half is cultivated up to three times a year. Following paddy fields, plantation makes up a quarter of the land use in Pauh Duo. Most of the area is allocated for rubber plants, followed by robusta coffee and cocoa.

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Archaeological, Cultural Heritage, and Religious sites

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The ADB Environmental and Social Framework (ESF) 2012 categorises cultural heritage into two kinds, intangible and tangible. The intangible refers to story of the origins, which in this case is the origins of Pauh Duo people, and tangible which are mainly in the form of mosques and castles of the Kings of Surambi Sungai Pagu, located around 20 km from the project site. Those stories and buildings are highly related to the local communities in Pauh Duo district, and South Solok regency in general.

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Gender and Vulnerability

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One of the primary characteristics that distinguishes the identity of the Minangkabau (shortened as Minang) people is matrilineal. In accordance with their culture and traditions, women inherit kinship and inheritance property. The ownership of land by women ensures their authority and status on equal with men.

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In Minang custom, mothers or women have a special position in the system of descendants, fields, and houses of residence. Men, however, have equal rights and houses, with their lineage inherited from generation to generation to male and female nephews. Customary law and manners are inherited by all children, nephews, and nieces in a nagari, ensuring a balance between men and women in sako.

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Vulnerability refers to various factors, including race, colour, sex, religion, and economic disadvantage, as well as individual or group characteristics that were marginalized in the community.

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A socio-economic survey was conducted that includes an assessment of the vulnerability of the landowners. The result of the survey is Social Stakeholder Mapping (2023) report which was used as reference throughout this study.

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Based on the Report of Social and Stakeholders Mapping in Pauh Duo Subdistrict, it is identified that various groups such as the elderly, children, the poor, pregnant women, people with disabilities, refugees, ethnics, and migrant workers. Additionally, the Indonesian Ministry of Social Affairs identifies recipients of Social Welfare Services (PPKS) as individuals, families, groups, or communities that are unable to perform their social functions due to obstacles, difficulty, or disorder.

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The report found that individuals or families in Pauh Duo district fit the definition of vulnerable, including members of society with disabilities and low-income families. These families often provide attention and care to these individuals, but face challenges in accessing health and education facilities. Residential houses under Program Keluarga Harapan (PKH) also identify this community group. Minang society does not categorize women as vulnerable groups, as they inherit economic assets to influence their role in family decision-making. However, with relatively strong kinship in the community, vulnerable community residents can receive protection and assistance from the

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The South Solok regency also adapts a number of traditional Minang ethnic local traditions, among others: Mambantai Kabau Nan Gadang, Makan Bajamba, Upacara Turun Mandi, and Balimau.

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Local Tradition

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community. The survey results show that households in Pauh Duo district are generally low-income households, with factors such as high operational costs of farming, poor yields, and low prices for agricultural products contributing to the community's low economic status.

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Affected Households

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Those who settle in villages Nagari Alam Pauh Duo, Nagari Pauh Duo Nan Batigo, and Nagari Persiapan Pekonina are considered as the project affected people. The directly impacted people of Phase 2 development are the 52 land owners of 31 land parcels that were acquisitioned by Phase 2. The project activities might affect the community safety and security, including additional traffic, noise, and air pollution in the three villages.

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Demography

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Nagari Alam Pauh Duo and Nagari Pauh Duo Nan Batigo (PDNB) are directly impacted areas. At the time the ESIA Scoping Study report was written, Nagari Alam Pauh Duo was in the process of village proliferation. The result is that a new village known as Nagari Persiapan Pekonina will be set up in the current area of Alam Pauh Duo.

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The designated area for Phase 2 is located in Jorong Pinang Awan, Nagari Pauh Duo Nan Batigo (PDNB). The Nagari PDNB comprises four Jorongs which are Taratak Bukareh, Paninjauan, Bukit Sikumpa, and Pinang Awan. The latest data points out that the distribution of population is uneven.

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Education

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A census by BPS Pauh Duo conducted in 2020 shows that around 65% of the Pauh Duo district population attended school. The comparison between female and male who attend school is almost equal. Amongst those who attended school, most completed elementary school, while there are those who completed secondary level, a minority completed tertiary level. Most of those who completed tertiary school are primarily female.

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The Social and Stakeholder Mapping (2023) shows that the community education is relatively high.

This is seen from the high numbers of millennials that have completed tertiary education.

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Infrastructure

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There are 26 educational institutions distributed in Pauh Duo district, and most of them are elementary school. Most of the basic education schools (SD/MI) are situated in villages and are accessible by village roads.

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Employment and Livelihoods

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The employment sector is primarily dominated by the agricultural sector, followed by trading. The commodities traded include rice, green beans coffee, snacks, and basic needs.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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Income

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The main source of income of the affected households are paddy, tea plantation, horticulture, and agroforestry. Men and women of the households work together in supporting their households.

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Income and Expenditure

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Rice paddy is cultivated by both men and women and tea plantation is primarily done by women.

Other source of income of the affected households come from horticulture and agroforestry.

Horticulture and agroforestry products such as shallot is grown by majority of the affected area.

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The Pauh Duo district comprises 45 health facility units spread across the five nagaris, with the community health centre or Pusat Kesehatan Masyarakat (Puskemas) Pakan Salasa in Nagari Alam Pauh Duo. This central health facility provides various services; inpatient and outpatient, individual health services, including preventive, curative, and rehabilitative health services.

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Disease Prevalence

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9.3 Affected Household

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The record of disease prevalence is served to provide understanding on commonly disease patterns occur in the communities in the project area. According to Puskesmas Pakan Salasa, the most prevalent disease is hypertension, which not a disesase associated with the development of the project. The second most common disease is Upper Respiratory Tract Infection (Infeksi Saluran Pernapasan Atas / ISPA). This disesase can be attributed to dust exposure and air pollution.

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The ESIA report for the Supreme Energy Muara Laboh Phase 2 Project focuses on the households affected by the Phase 2 project. The report identifies 52 landowners of 31 land parcels that were acquisitioned for Phase 2. The report also emphasizes potential disruptions such as increased traffic, noise, and air pollution. This development overlaps with key community infrastructure, which could affect safety and living conditions for residents during the construction phase.

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The report also highlights the demographic and socio-economic profile of the affected households.

The population in these villages has grown significantly, with low-density living conditions of approximately 65 people per km². Residents primarily depend on agriculture, exposing them to vulnerabilities such as fluctuating product prices, land ownership challenges, and climate variability.

Notably, Nagari Alam Pauh Duo's population has seen a notable increase, reflecting regional growth and potential pressures on local resources and infrastructure. These insights provide a foundation for targeted mitigation strategies to minimize adverse effects on community health, safety, and livelihoods.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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The Indigenous People screening examines the Indigenous Peoples (IP) screening assessment for the Minang ethnic group in the Supreme Energy Muara Laboh Phase 2 Project area. Using international frameworks such as the Asian Development Bank's Safeguard Policy Statement (ADB SPS) and Indonesian regulations, the assessment determines whether the Minang people meet the criteria of Indigenous Peoples. The methodology combined desktop reviews of regulatory frameworks and field observations conducted in late 2023 and early 2024. Key criteria evaluated include self-identification as an indigenous group, collective attachment to ancestral territories, distinct cultural and social institutions, and language uniqueness.

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9.4 Indigenous People Screening Assessment

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The findings of the screening indicate that while the Minang culture exhibit cultural distinctiveness and self-identify as an ethnic group, they are well-integrated into mainstream society, utilizing national legal and political systems. The community has no claims of ancestral landownership or separate institutions distinct from the dominant culture. Furthermore, the Minang people speak a regional language, they are fluent in Bahasa Indonesia, demonstrating societal integration.

Consequently, the Minang do not qualify as Indigenous Peoples under the ADB SPS. However, the project recognizes the importance of respecting their cultural heritage and ensuring that activities do not adversely affect their traditional practices or livelihoods

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9.5 Human Rights Assessment

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The project also addresses the Human Rights Impact Assessment (HRIA) for the Supreme Energy Muara Laboh Phase 2 Project. The assessment concludes that a separate Human Rights Impact Assessment (HRIA) for Phase 2 is unnecessary because the assessment conducted during Phase 1 remains applicable, however an additional Human Rights Impact Assessment Study was conducted to further strengthen the stance. No additional activities have been identified that would alter the findings of the earlier HRIA, given the project's consistent location and boundaries. The company ensures human rights compliance through contractual obligations, which align with international standards like IFC Performance Standard 2.

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Furthermore, the project has incorporated human rights considerations into operational frameworks, emphasizing ethics, sustainable development, and workplace practices. While all components of HRIA were reviewed and integrated into corporate documentation, ongoing consolidation efforts ensure compliance with evolving standards. The project's proactive approach underscores its commitment to maintaining high ethical standards and mitigating any potential adverse impacts on human rights during its development.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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This Environmental Impact Assessment evaluates environmental impacts arising from the Supreme Energy Muara Laboh Phase 2 Project during construction, operation, and decommissioning phases.

It identifies potential risks, assesses significance, and outlines mitigation measures to minimize adverse effects on air, water, soil, biodiversity, and human health.

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10. ENVIRONMENTAL IMPACT ASSESSMENT

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10.1 Air Quality Assessment

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Activities such as land preparation, transportation, and operational emissions have the possibility to influence air quality around project area and surrounding community. Initial data indicated pollutant levels below thresholds, however potential risks include dust, particulate matter, and H2S emissions.

Mitigation measures include air quality monitoring, control measures such as water sprinkling, and adherence to safety standards and good practices.

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10.2 Greenhouse Gas Emissions

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The project follows IFC and national guidelines for Greenhouse Gas (GHG) management. Direct and indirect emissions are quantified, with alternative energy solutions evaluated. SEML uses a dual-flash system (capable of extracting more energy from the same quantity steam) instead of single-flash to optimise steam for electricity production. Although contributions to Indonesia’s total GHG emissions are minor, efforts include optimizing fuel use and monitoring emissions on a regular basis.

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Construction and drilling can produce noise pollution and can impact the surrounding community as well as cause occupational hazzard. Noise levels are assessed against residential and industrial thresholds, with mitigation like equipment maintenance and operational scheduling. Noise levels are also monitored on a regular basis both within the project area as well as surrounding community receptors.

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10.4 Soil Quality Impacts

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Construction and and drilling also has the potential risk to soil contamination. Soil is monitored regularly and visual observation for potential degradation of land (pollution, erosion, landslip, landslides, etc.) is also conducted regularly and logged for action plan. For soil, handling drilling mud and managing runoff are also critical interventions.

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10.5 Water and Sedimentation Water and sedimentation impact covers the impact of surface and groundwater, including contamination risks from construction runoff. Measures like sediment traps and water quality monitoring ensure compliance. Water quality monitoring is conducted accordingly to the relevant regulation. Sediment management plans (sediment traps, management of run-offs, etc.) address potential ecological disruptions in nearby water bodies.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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The project's potential to disturb wildlife (flora and fauna) and spread invasive species is analyzed and assessed. Biodiversity management plans and species-specific conservation strategies mitigate these risks. Habitat restoration and ecological monitoring are integral. A number of documents serve as reference to the projects management effort such as the BAP, CHA, BOMP, etc.

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10.6 Biodiversity and Ecology

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10.7 Waste Management

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Increased waste from construction necessitates rigorous waste sorting and disposal systems, complying with non-hazardous and hazardous waste material guidelines. Plans focus on minimizing impacts on local ecosystems. Waste management within the project area is managed accordingly to the type of waste. Hazardous waste is managed, stored temporarily and transported using a certified third party and domestic waste is managed, stored and transported on a weekly basis to a local government facility. Waste on site is also segregated according to type. Waste is also managed as to prevent any exposure to the surrounding community.

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10.8 Traffic Management

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Increased traffic and climate vulnerability are addressed through sustainable transport logistics and adherence to climate adaptation strategies. Emergency response plans are aligned with potential climate risks.Traffic is assessed and managed through speed limits and regular speed checks.

Project commuting and operational vehicles are equipped with GPS to track speed limit violations.

Company drivers are mandated to have a valid driver license as well as company driver license (SIMPER). Drivers are regularly trained in defensive driving courses.

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The climate change assessment assesses the climate change risks and impacts for the Supreme Energy Muara Laboh Phase 2 Project. The assessment focuses on both physical risks, such as extreme weather events, and transition risks related to greenhouse gas (GHG) emissions. The project is classified as Category B under the Equator Principles. The physical climate risks include increased rainfall intensity, potential landslides, and flooding, while GHG emissions align with Indonesia’s National Climate Change Commitments. The project emphasizes adherence to international guidelines, such as the Task Force on Climate-Related Financial Disclosures (TCFD), and highlights the need for early risk identification and mitigation strategies during all phases of the project lifecycle.

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Mitigation measures are designed to reduce the impact of extreme weather and operational risks.

During construction, stormwater management systems and careful site planning aim to minimize vulnerability. For the operational phase, heat stress management, fire risk precautions, and lightning protection are integrated into the plant design. Climate change projections, including scenarios of RCP 8.5, guide risk assessments and adaptation planning. Monitoring includes regular assessments of stormwater management, water quality, and operational safety against climate-related disruptions. These strategies ensure compliance with regulatory frameworks and international standards, reducing the project's environmental and social risks

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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The chapter emphasizes regular monitoring, stakeholder engagement, and reporting to ensure environmental safety and regulatory compliance throughout the project lifecycle. The company’s efforts and obligation to monitoring and compliance is further elaborated within the Environmental and Social Management Plan (ESMP).

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10.10 Monitoring and Compliance

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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The Social Impact Assessment of the Supreme Energy Muara Laboh Phase 2 ESIA focuses on the social impacts of the project during its various phases, including pre-construction, construction, operation, and decommissioning.

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11. SOCIAL IMPACT ASSESSMENT

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11.1 Economy and Employment

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Workforce mobilization during construction offers employment opportunities, yet it may disrupt existing livelihoods. Positive effects are expected with proper integration of local hiring practices and support for local businesses. The project could impact agricultural activities and other local income sources, particularly for those dependent on land use. Mitigation strategies include compensations and livelihood restoration programs in accordance to relevant regulations.

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11.2 Infrastructures

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Increased transportation of materials and personnel may strain local roads and public utilities, requiring effective coordination and resource sharing to reduce inconvenience. This is managed and monitored in several of the company’s documents such as the Journey Management Plan (JMP).

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Community project is influenced by worker conduct, traffic, and resource utilization. Engagement with local stakeholders, grievance redress mechanisms, and awareness campaigns are recommended to mitigate negative perceptions. Grievance redress mechanism has been established. Grievance is logged and addressed in timely manner.

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11.4 Community Health and Safety

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Risks to community include diseases and potential safety hazards linked to operational activities.

Comprehensive safety measures, health education, and emergency response plans are critical in addressing these issues. The company ensures that community health is not significantly impacted by the project operation.

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Construction activities require strict adherence to safety standards, training programs, and regular health checks.The occupational health and safety programs uses a robust methodology, including stakeholder feedback, socio-economic data, and identification of vulnerable groups. It emphasizes continuous monitoring, gender mainstreaming, and targeted interventions to enhance the project's social sustainability.

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12. ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN

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The Environmental and Social Management Plan of the Supreme Energy Muara Laboh Phase 2 ESIA elaborates on the Environmental and Social Management Plan (ESMP), a framework designed to mitigate potential risks and impacts identified during the project's lifecycle. The ESMP is built on international standards, national regulations, and Good International Industry Practices (GIIP). It prioritizes adaptive management measures, ensuring that mitigation actions align with evolving project conditions and stakeholder feedback.

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The ESMP also emphasizes the integration of the ESMP with the Environmental and Social Management System (ESMS) to streamline implementation and monitoring efforts. Key objectives include defining monitoring protocols, ensuring stakeholder clarity on management strategies, and setting clear accountability structures for contractors and the project proponent as well as a defined timeline of action.

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The ESMP details several thematic management plans, including air quality, noise, waste, biodiversity, community health and safety, and traffic. Each plan specifies mitigation measures, monitoring requirements, and responsible entities, ensuring environmental and social objectives are met during construction, operation, and decommissioning. Furthermore, the ESMP addresses stakeholder engagement and emergency preparedness to enhance community relations and safety.

The chapter underscores the importance of periodic review and updates to the management plans, ensuring they remain effective and responsive to project developments.

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SEML PHASE 2 NON-TECHNICAL SUMMARY

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The conclusion and recommendation section of the ESIA focuses on concluding the findings and providing actionable recommendations for the Supreme Energy Muara Laboh Phase 2 Project. It emphasizes the project's potential environmental and socio-economic impacts, categorized by phases and mitigated through outlined strategies. Impacts range from air and water quality disturbances to socio-economic shifts like employment and local infrastructure demands. The chapter synthesizes findings from earlier chapters to offer a comprehensive summary of both adverse and positive outcomes, emphasizing that mitigation measures reduce negative impacts to acceptable levels while enhancing beneficial ones.

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13. CONCLUSIONS

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The project aligns with international standards like the IFC and ADB environmental and social categorizations, classified under Category B for limited, site-specific impacts. The project proponent is to engage continuously with stakeholders, ensure rigorous implementation of the Environmental and Social Management Plan (ESMP), and address any gaps in documentation or compliance identified in the ESIA process. The project will utilise adaptive management and ongoing monitoring to ensure project sustainability and community well-being.

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