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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Indonesia

PT Securiport International Indonesia

$100 million
Services
Environmental and Social Review Summary
Proposed
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Environmental and Social Review Summary

PT Securiport International Indonesia

This Environmental and Social Review Summary (ESRS) is prepared by MIGA staff and disclosed prior to the date on which MIGA’s Board of Directors considers the proposed issuance of a Contract of Guarantee. Its purpose is to enhance the transparency of MIGA’s activities. This document should not be construed as presuming the outcome of the decision by MIGA’s Board of Directors. Board dates are estimates only.

Any documentation that is attached to this ESRS has been prepared by the proposed Guarantee Holder, and authorization has been given for public release. MIGA has reviewed the attached documentation as provided by the applicant and considers it of adequate quality to be released to the public but does not endorse the content.

This Environmental and Social Review Summary (ESRS) is prepared by MIGA staff and disclosed prior to the date on which MIGA’s Board of Directors considers the proposed issuance of a Contract of Guarantee. Its purpose is to enhance the transparency of MIGA’s activities. This document should not be construed as presuming the outcome of the decision by MIGA’s Board of Directors. Board dates are estimates only.

Any documentation that is attached to this ESRS has been prepared by the proposed Guarantee Holder, and authorization has been given for public release. MIGA has reviewed the attached documentation as provided by the applicant and considers it of adequate quality to be released to the public but does not endorse the content.

The Project consists of Securiport Limited Liability Company (LLC) of the United States of America’s proposed investment in the multidimensional modernization and renewal of Indonesia’s border control systems at seven international airports, to facilitate more secure and efficient migration processes at these border crossing points via the provision of an integrated immigration control system technology. Securiport will carry out this Public-Private Partnership (PPP) undertaking on a design-build-finance-maintenance-transfer scheme through PT Securiport International Indonesia (the Project Enterprise, or PE). The Government of Indonesia through Ministry of Law and Human Rights as the government contracting agency, signed the Cooperation Agreement with the PE on 1 March 2022, for the provision of immigration control system technology for a term of 20 years starting from the commercial operation date. Securiport has requested MIGA to cover the shareholder loan investment against the risks of Transfer Restriction (TR), Expropriation (Exp), and Breach of Contract (BoC). The BoC coverage will only be for arbitral award default and will not cover denial of recourse. The guarantee tenor requested is for up to 15 years.

The Project will be implemented in seven international airports in Indonesia including Bali, Jakarta, Surabaya, Medan, Bandung, Yogyakarta, and Padang – with the Project headquarters (HQ) located in Jakarta. At the implementation stage, it will consist of minor civil works and installation of immigration control equipment including computers, servers, CCTV cameras and camera supports, passport readers, fingerprint readers, kiosks and other equipment. The civil works will be limited to renovation and refurbishment and no new construction is anticipated. In addition, the project will create five training centers to support the initial set up and continuous training of immigration services officers at each location and install two data centers to host the Securiport information technology (IT) solutions. For most of the works during the implementation stage the Project selected an international digital automation contractor. It is anticipated that the implementation stage will be completed within a 12-month period.

At the operational stage, the Project will include preventive and corrective maintenance, technical assistance, troubleshooting and IT platform evolution. At all times, the border control systems will be operated by the immigration and border control employees and not by the PE.   

 

This is a Category B project according to MIGA’s Policy on Environmental and Social Sustainability (2013). Key potential risks and impacts associated with the project include (i) occupational health and safety associated with minor civil works and equipment maintenance (dust, noise, vibration, electrical safety); (ii) PE’s ability to implement the HR management system in line with MIGA PS 2 requirements.  In general, the Project is expected to have limited environmental and social (E&S) risks, which will be few, site-specific, largely reversible, and readily addressed through mitigation measures.    

While all PSs are applicable to this Project, current information indicates that the Project will have impacts which must be managed in a manner consistent with the following PSs:

  • PS1: Assessment and Management of Environmental and Social Risks and Impacts
  • PS2: Labor and Working Conditions

PS 3 is not triggered due to the fact that the project activities will not consume significant amount of resources apart from those required for the day-to-day operations of the offices, data rooms and training centers. The project will not contribute to air, water or ground pollution. At the end of the lifecycle, hardware equipment will be considered for reuse outside the Project (government and non-government organizations, schools, etc.) or will be returned to original vendors for recycling.     

PS 4 is not triggered because no impacts on community health and safety are expected. The duration of civil works will be short, and the spatial footprint is limited to the immigration control zones in the airports.  PS5 is not deemed applicable as no land acquisition is involved. PS6 and PS7 are also not triggered for this project.

In addition to the above PSs, the World Bank Group General Environmental, Health, and Safety (WBG EHS) Guidelines (2007) are applicable to the Project. 

The following documents were reviewed by MIGA:

  • Securiport LLC Employee Handbook (October 2021)
  • Feasibility Study - Modernization of the Immigration Control System (February 2023)
  • Cooperation Agreement between Ministry of Law and Human Rights of the Republic of Indonesia and PT Securiport International Indonesia (March 2022)
  • Statement of Ability to Manage and Monitor the Environment (SPPL, part of business license, June 2022)
  • Securiport LLC Purchase Management Procedure (October 2019)

In addition to reviewing the above documents, MIGA conducted virtual due diligence in December 2022- January 2023, including calls with key Securiport representatives. 

MIGA’s due diligence review considered the E&S and HR management procedures and documentation, and gaps between these and MIGA’s requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period are summarized in the paragraphs that follow and in the Environmental and Social Action Plan (ESAP) attached to this ESRS. Through the implementation of these measures, the Project is expected to be designed and operated in accordance with MIGA’s PSs.

Key E&S issues associated with the Project’s business activities are summarized in the paragraphs that follow.

PS1:  Assessment and Management of Environmental and Social Risks and Impacts

Environmental and Social Assessment and Management System

Based on the Law No. 32 of 2009 on Environmental Protection and Management (“Law 32/2009”) no environmental impact assessment is required for the Project. As a standard requirement in the business licensing process, on June 22, 2022, the PE issued a Statement of Ability to Manage and Monitor the Environment which declares PE’s obligation to comply with environmental legislation in their business activities.        

For the implementation stage the Project has contracted an international digital automation company which has established a Global Safety Strategy and has a Safety and Occupational Health Policy (January 2021) in place. This policy is in line with the MIGA PS 1 and sets the requirement to systematically identify and mitigate hazards. It also declares management commitment and responsibility for occupational health and safety with a target of achieving zero incidents.

The PE will develop an overarching E&S and OHS Policy in line with the requirements of the MIGA PS 1 and will communicate it to all levels within its organization (as per the ESAP). The Policy will provide a framework for the E&S and OHS management process, specify that the PE’s business activities will comply with the applicable Indonesian laws and regulations and outline the responsibilities for the Policy execution.

Organizational Capacity and Competency

The qualified HR Manager located in PE’s office in Jakarta will have overall responsibility for managing issues related to labor and working conditions and occupational health and safety.

Emergency Preparedness and Response

The PE will develop emergency response procedures for their offices, data rooms and training centers in line with the requirements of MIGA PS 1 (as per the ESAP).

Monitoring and review

The Project will be required to provide annual monitoring reports to MIGA in line with the requirements of MIGA contract of guarantee.

PS2:  Labor and Working Conditions

During the implementation phase the Project will involve around 350 people out of which 300 will be employed with digital automation contractor. This workforce will mainly consist of electricians, heating, ventilation and air conditioning specialists, IT specialists and general construction workers.

During operations, the PE will directly hire around 750 workers including 350 in Jakarta, 105 in Denpasar, 60 in Surabaya, around 40 in each of Medan, Bandung, Yogyakarta, and Padang, and 25 in Bali. This workforce will mainly consist of airport support engineers, customer support engineers (payment platform, immigration systems), developers and IT support, quality assurance specialists, various office support staff (drivers, couriers, kitchen) and administration and accounting staff.   

Working Conditions and Management of Worker Relationship

The GH, Securiport LLC, has developed a comprehensive Employee Handbook (October 2021) which is compliant with the requirements of MIGA PS2. It includes equal opportunity and anti-discrimination policy, harassment and complaints procedure (including sexual harassment), recruitment and performance review process, work-week and hours of work, separation from employment, workplace safety, ethics policy and code of conduct, whistleblowers protection and other. Following the same principles, the PE will develop an Employee Handbook commensurate to its operations in line with MIGA PS 2 (as per the ESAP).     

Occupational Health and Safety (OHS)

The selected digital automation contractor has developed a set of procedures to address the common OHS hazards that are associated with the installation works including electrical safety, operation of machinery, driving/transportation and falls. Based on the company policy safety improvement opportunities, near-misses, and incidents are analyzed and communicated in a systematic manner.

The Employee Handbook developed by the Securiport LLC contains requirements on workplace safety which include training on emergency response, first aid and ergonomic hazards, as well as reporting on accidents and incidents. The PE will apply the requirements of the workplace safety in their operations.   

Supply chain

Securiport LLC has developed a global Purchase Management Procedure (October 2019) which is in line with MIGA PS 2 requirements. It prohibits child and forced labor in Securiport operations worldwide and its supply chains. The procedure contains the requirement for evaluation of suppliers including the aspect of forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery, or trafficking of persons.

 

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MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability) in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities.

In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA.

Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm.

Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address below:

 

Compliance Advisor/Ombudsman
International Finance Corporation
2121 Pennsylvania Avenue NW
Room F11K-232
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
E-mail:
cao-compliance@ifc.org

 

The above listed documentation is available electronically as a PDF attachment to this ESRS at www.miga.org.

 

Local Access of Project Documentation:

Graha Mustika Ratu Floor 10, Jakarta Selatan, DKI Jakarta, Indonesia

 

 

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