Land Aquisition Completion and Audit Report
Executive Summary
PT Supreme Energy Muara Laboh (SEML) successfully completed the second phase of land acquisition for the Muara Laboh Geothermal Project in December 2023, covering a total area of approximately 41.5 hectares and involving 31 Project Affected Persons (PAPs). Anwar Muhammad Foundation (AMF) conducted an evaluation and audit to ensure that the process was carried out in accordance with principles of fairness, transparency, and social–environmental sustainability. The study also highlighted the importance of enhancing stakeholder communication, finalising the Livelihood Restoration Plan (LRP), and strengthening the Grievance Redress Mechanism (GRM). Follow-up recommendations emphasised the need for continuous monitoring and the development of a CSR framework that is responsive to local needs. Overall, the second phase of land acquisition was found to have been implemented in compliance with regulations, with some areas identified for improvement in long-term social aspects.
Background
PT Supreme Energy Muara Laboh (SEML) is developing the Muara Laboh Geothermal Project in South Solok Regency, West Sumatra, to sustainably increase national electricity capacity. The project is implemented in two stages: Phase 1 involved exploration drilling and resource confirmation, while Phase 2 comprised production drilling, power plant construction, and utilisation. By December 2023, the land acquisition for Phase 2 covering approximately 41.5 hectares for wellpads, access roads, and pipeline systems, had been completed using a “willing seller–willing buyer” approach, without any physical displacement of households, and with appropriate compensation. Anwar Muhammad Foundation (AMF) recognised the importance of conducting an evaluation and audit to ensure that the land acquisition procedures were implemented fairly, transparently, and sustainably for both local communities and the surrounding environment.
Client
PT Supreme Energy Muara Laboh
Year
2024/Indonesia
Location
South Solok Regency, West Sumatra
Objectives of the Intervention
- To audit and assess the compliance of the Phase 2 land acquisition process for the Muara Laboh Geothermal Project conducted by PT SEML with national regulations and the Asian Development Bank’s (ADB) Safeguard Policy Statement (SPS).
- To provide recommendations and an action plan to address gaps identified in the implementation of Phase 2 land acquisition.
Implementation
- Conducted a comprehensive Land Acquisition Audit in accordance with ADB SPS (2009) and national policies.
- Prepared the Land Acquisition Completion and Performance Audit Report.
Prepared the Land Acquisition Completion and Performance Audit Report.
The Phase 2 land acquisition process by PT SEML complied with national regulations.
The process was carried out with principles of fairness, transparency, and community participation.
The recommendations and follow-up actions strengthened communication, grievance mechanisms, and long-term community relations.
Challenges Encountered
- Ensuring that the Grievance Redress Mechanism (GRM) remains inclusive, transparent, and effective in addressing community concerns.
Lessons Learned
- The GRM mechanism must be further optimised to function as a transparent and independent platform for complaint handling.
- Continuous, clear, and intensive communication with PAPs and stakeholders is crucial from the early stages of the process.
Documentation
Anwar Muhammad Foundation
Jl. O Kavling No. 12, RT. 10 RW. 14, Kebon Baru, Tebet, Jakarta Selatan – Indonesia 12830