Record Details

Title Social Safeguard Measures in Geothermal Exploration: Fulfilling Requirements for the Geothermal Resource Risk Mitigation Program (GREM)
Authors AFANDI, PURBA, DESAK, FERDINO, ASTRI
Year 2024
Conference Stanford Geothermal Workshop
Keywords social safeguard, geothermal exploration, GREM, societal challenges, World Bank, social safeguard policies, social safeguard instruments, drilling, Indonesia.
Abstract Geothermal exploration in Indonesia plays a critical role in achieving the national target for renewable energy development. However, the early exploration phase often faces challenges related to social safeguards, primarily attributed to a communication gap between geothermal developer companies and local communities. To secure funding from lenders, potential borrowers must fulfil specific requirements to demonstrate their commitment to social safeguard measures. Failure to understand and address these requirements can lead to project delays and pose significant risks to the project's success. In this context, the Geothermal Resource Risk Mitigation Program (GREM), a geothermal exploration funding program by The World Bank and The Ministry of Finance, aims to support geothermal exploration projects in Indonesia. This program highlights the urgency to accelerate geothermal exploration activities and emphasizes the significance of effective communication and stakeholder engagement in managing social impacts. The GREM program also sets forth specific requirements that potential borrowers must fulfil to showcase their adherence to social safeguard standards. This paper examines the social safeguard issues that arise during geothermal exploration in Indonesia and explores the necessary measures to fulfil GREM's requirements. Drawing on case studies and best practices, it presents a comprehensive approach to address social safeguard concerns, encompassing social impact assessments, stakeholder engagement plans, resettlement and livelihood restoration measures, indigenous peoples' rights protection, health and safety protocols, local employment opportunities, and sustainable community development initiatives. By understanding and fulfilling GREM's social safeguard requirements, geothermal developers can enhance their eligibility for funding and demonstrate their commitment to responsible and sustainable practices. The paper underscores the critical role of proactive planning, effective communication, and robust monitoring and reporting mechanisms to ensure successful geothermal exploration projects aligned with national targets while safeguarding the interests of local communities and the environment.
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