The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
- Land Acquisition and Compensation
The Project involves an expansion of KAS’ existing site in Surabaya, which occupies a portion of a larger industrial site of 75 ha located in north Gresik in a developing industrial area. The area was formerly occupied by brackish water fish ponds which are now being filled as the city expands. This plant started operation in early 2003. The land was purchased from the previous owners on a willing buyer-willing seller basis, and no residents or land users were displaced.
- Energy and Water Supply
Electricity is sourced from the local grid, with small backup diesel gensets. Steam is used to heat oil for cooking, and is produced in coal boilers (backed up by natural gas-fired boilers) that replaced the existing diesel-fired boilers. The company is in the process of installing another coal boiler that will operate in compliance with local and WB/IFC emission requirements. Water supply is derived from wells on the site, and is properly treated and tested to ensure compliance with Indonesian and WB/IFC standards.
- Raw Material Sourcing and Pesticide Use
The Project sources a variety of ingredients ranging from flour to onions, garlic and chili. Ingredients are procured from local / import suppliers that the company already has established relationships with. The company will adopt appropriate measures to ensure that suppliers adopt pesticide management measures and monitor their supply chains, in conformance with WB/IFC policies and guidelines. This will be included as part of the Environmental Action Plan for the project.
- Management Systems for Quality, Environment, Occupational Health and Safety, and Food, Life and Fire Safety
The company is developing and implementing an integrated quality, EHS, food and fire safety management system for its existing and expanded operations, and is considering to certify the system to ISO 22000. IFC will require that the company achieve certification to an appropriate standard, or standards, which assures that a comprehensive management system is in place covering environmental, social and health and safety issues that meets the requirements of ISO 14001, OHSAS 18001 and HACCP or equivalent, as part of the Environmental Action Plan. EHS and fire safety training is conducted internally every four months on matters ranging from fire safety equipment operation to safe machine operations and heavy lifting to food hygiene. An automatic fire detection and suppression system will be installed that includes thermal detection and centralized chemical sprinkler systems in the seasoning frying areas.
- Liquid and Solid Material and Waste Management
Process wastewater is treated by a primary and secondary treatment system that includes both anaerobic and aerobic digestion and meets local and WB/IFC requirements. Sanitary wastes are treated in septic systems. Secondary containment is provided for all fuel tanks, water treatment acid and alkali tanks. Solid wastes are collected for disposal by licensed contractors.
- Workplace Conditions and Community Relations
PT KAS currently employs 5,000 staff and this will increase to 6,100 once the noodle line expansion has been completed. Compensation, working hours and workplace conditions comply with Indonesian labor standards and requirements. The company provides additional financial compensation based on performance as well as amenity and cultural facilities for staff. To improve ventilation and workplace conditions, the company installed ducting for fresh air intake across the noodle lines as well as roof fans to facilitate heat removal in April 2005. Both internal and ambient noise levels comply with local and WB/IFC standards. To facilitate a positive relationship with the local community, the company has donated significantly to the development of a local school and religious facilities.
