The company purchased land for the sub-projects directly from industrial estate developers or through acquisition of an existing warehouse, and did not involve any involuntary physical or economic displacement. PS5: Land Acquisition and Involuntary Resettlement is therefore not applicable.

 The key environmental & social (E&S) issues and risks associated with this project include: the company’s E&S management capacity (including identification and management of the sub-projects E&S risks for both construction and operations), labor and working conditions, occupational health and safety (OHS), fire protection and emergency response and stakeholder engagement. 

IFC’s review concluded that the potential adverse E&S risks and impacts of this project are considered few in number, and potentially readily mitigated allied with implementation of good international industry practice. This is therefore a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012).

 Environmental and Social Assessment and Management System. The company has developed corporate EHS requirements, including: General Safety Rules and Regulations, risk assessments, templates etc.

The sub-projects will undertake a process of impact assessment to meet local environmental impact assessment requirements in Indonesia.  This includes an assessment of the impacts and development of management and monitoring plans.

Contractors for the sub-projects are required to prepare customized documents to manage EHS during construction, which are reviewed and approved by the company. During construction there is reporting up to the company of key performance indicators (KPIs), such as number of hours of work, number of accidents incidents, etc. and performance is verified by assessments and audits on-site, which are undertaken by an on-site construction consultant whose remit includes overseeing EHS management. 

Based on IFC’s review, the focus has been on EHS aspects during construction although a full documented E&S management system (ESMS) has not yet been developed that systematically organizes the approach and the requirements with respect to E&S management and which also considers the operational stage. Therefore, as part of ESAP #1, the sub-projects will be required to build upon the scope of the existing management processes to develop an ESMS to be applied to the sub-projects and provide sufficient management capacity and training for its implementation for construction and operations.

The ESMS will be completed in accordance with good international practices, will be appropriate to the nature and scale of the sub-projects and commensurate with the level of their environmental and social risks and impacts, and will be consistent with the Performance Standards. The ESMS will incorporate the following elements: (i) policy; (ii) identification of risks and impacts; (iii) management programs; (iv) organizational capacity and competency; (v) emergency preparedness and response; (vi) stakeholder engagement; and (vii) monitoring and review. This should build on and incorporate the existing elements that have been developed to-date and consider construction and operational phases of the sub-projects. 

Organizational Capacity and Competency. The company’s Head of Health & Safety for South East Asia has overall responsibility for EHS at the sub-projects in construction and operational phases. At each sub-project an external construction consultant, who has a dedicated team based at site for the construction phases, is responsible to oversee construction, including EHS aspects, in addition to representatives of the company. The appointed construction contractors of the sub-projects also each have their own EHS representatives to oversee EHS aspects of their own workers during construction.

As per the ESMS developed under ESAP #1, the company will update its E&S organization and will formalize the E&S organization structure for construction and operations phases, with  responsibility for the implementation of ESMS at the sub-projects recorded. This will include specific personnel, including management representative(s), with clear lines of responsibility and authority. Sufficient management support and human and financial resources will be provided on an ongoing basis to achieve effective and continuous E&S performance.  This will also require that sub-project personnel will have the knowledge, skills, and experience necessary to perform their roles.

Emergency Preparedness and Response. The designs of the sub-projects include the design and specification of fire services installation to meet the requirements of US National Fire Protection Association (NFPA) and Indonesian requirements (selecting whichever is stricter) with installation of sprinkler systems, hydrants and portable fire extinguishers. The company General Safety Rules and Requirements include requirements for the Emergency Response Plans including emergency teams and emergency procedures for construction. As part of ESAP #2, the Emergency Preparedness and Response arrangements will be reviewed and updated for the sub-project specific conditions and this should cover both construction and operations and ensure that there are tailored emergency response plans in place, equipment and facilities for emergency response (including firefighting), including procedures for incident investigation. This should include fire drills for tenants during the operational phase, and that the fire safety systems are checked (and tested) on a regular basis appropriately by qualified parties.

COVID-19 Response: As a result of COVID-19 protocols to manage the construction sites have been introduced, including health declarations, checks before accessing the worksites, workforce education and sanitizing.  The company has not had retrenchment in Indonesia as a result of COVID-19.   

Monitoring and Review. There are some existing processes for monitoring and review at the sub-projects with regular reports to the senior management on EHS aspects, including audits and assessments for construction, carried out by the on-site construction consultant. As part of ESAP #1 these should be formally incorporated into the ESMS to monitor and measure the effectiveness of the management programs, as well as compliance with any related legal and/or contractual obligations and regulatory requirements.  This will include necessary key performance indicators (KPIs) covering the construction and operational phases of the sub-projects.

Working Conditions and Management of Worker Relationship. As of August 2020, the company employs a total of 269 employees across its operations in Asia Pacific, there are 25 employees at the company’s operations in Indonesia of which, 20 are male and 5 are female. All are full time employees. Of these there are 7 Project/Development Management staff in charge of various projects in Indonesia.  For the sub-projects the largest labor aspects relate to the construction labor engaged through various contractors, with much of this being locally recruited. At the peak of construction each sub-project will have approximately between 500 to 800 workers on site.

During the operation of the sub-projects, as these will be operations run by tenants, the company will not have significant numbers of staff based at the sub-projects. 

Human Resources Policies and Procedures. The company has developed HR policies and procedures relating to its own operations and workforce; and is committed to creating a safe and inclusive workplace culture. The company supports diversity and requires employees to behave in a manner that is appropriate and respectful to others.  Equal opportunity is promoted with hiring and promotion being merit-based. There is no difference in terms of salary for female and male employees with the same experience. The company’s HR policies and procedures generally are consistent with the local labor laws and the requirements of PS2.

No instances or risks of child- or forced labor were noted during the construction phase, and no immigrant workers are reportedly directly employed by the company., Once the sub-projects become operational, the company will review its policies that apply to the sub-projects and develop relevant HR policies for the sub-projects, including in local language and ensure that they align with local requirements and IFC PS2.

Workers’ Organization. The company respects the Freedom of Association and does not prevent its employees from forming the trade unions; and has reported that currently there are no unions in its operations or at the sub-projects. Indonesia has ratified ILO conventions relation to freedom of association and collective bargaining. 

Grievance Mechanism. The company has a Workplace Behavior Policy and a Speak Up Policy that includes a process for raising of grievances and resolution.  As set forth in ESAP #4, the company will update this and make a grievance mechanism available for the sub-projects that will comply with IFC PS2 requirements, will also allow for anonymous complaints to be raised and addressed and, incorporate a formal anti-harassment policy into its HR policy documents whose scope will be extended to contactor and subcontractor workers (and be communicated to workers).

Occupational Health and Safety. The company has developed General Safety Rules and Regulations that covers safety programs, including those for contractors and subcontractors at the sub-projects for construction.  Contractors are then required to adapt/develop their policies, procedures etc. to meet the General Safety Rules and Regulations in addition to local requirements. A third-party construction consultant is engaged for each sub-project that includes responsibilities for occupational health & safety management. There have not been any reported significant accidents or incidents at the sub-project construction sites.

As part of ESAP #1, management of contractor occupational health & safety will be included in the ESMS, including requirements, oversight and monitoring.

Additionally, as part of ESAP #1, under the ESMS there will be a need to develop occupational health & safety procedures for the operational stages of the sub-projects including (i) identification of potential hazards to workers, particularly those that may be life-threatening; (ii) provision of preventive and protective measures, including modification, substitution, or elimination of hazardous conditions or substances; (iii) training of workers; (iv) documentation and reporting of occupational accidents, diseases, and incidents.

Workers Engaged by Third Parties. The company requires that its contractors (and their sub-contractors) follow the company’s EHS policies and procedures, including compliance with labor law through contractual requirements. The sub-project’s construction is overseen by a third-party consultant whose roles include review of contractor performance (including EHS) and includes audits and reviews during the construction period.  There is no migrant labor, except for some expatriate managers/supervisors of the construction companies.  The workforce will be predominantly male with limited numbers of female workers for support roles during in construction (e.g. housekeeping, catering services).  As part of ESAP #1, contractor E&S management procedures will be incorporated into the ESMS, including the oversight of labor and working conditions for workers.

Workers Accommodation: For one sub-project there will be accommodation provided for contractor workers on-site (to accommodate around 350 to 400 workers at peak construction) . The specifications for the design and management of these are using updated Singapore dormitory requirements (updated in light of the COVID-19 situation) and the original planned density of accommodation has been reduced.  In addition, the company has developed Worker Accommodation Standards based on the IFC/EBRD guidance on “Workers’ accommodation: processes and standards” which will be used in all its future development.

 Resource Efficiency. The sub-projects will be connected to the national power grid for power supply. As part of the measures to improve energy and resource efficiency, the sub-projects are targeting obtaining Green Mark Gold award certification from the Building & Construction Authority of Singapore (BCA) in accordance with the standard “Green Mark for Non-Residential Buildings (NRB) 2015”.  This certification includes consideration of energy efficiency, water efficiency, environmental protection and indoor environmental quality. The sub-projects will be installed with Building Management Systems that will monitor energy use, air conditioning & ventilation, fire protection amongst other services and will allow tracking of energy and water use to then bill tenants. 

There will be no major air emission sources installed, such as combustion equipment, at the sub-projects.

Water. Water for the sub-projects will be sourced from the local public water supply systems. Wastewater will be generated mainly from sanitary and domestic use and will be directed to an on-site small sewage treatment plant with the treated water used for irrigation-site.  The sub-projects are not expected to be major users of water or generators of wastewater.

GHG Emissions. As noted above the sub-projects intend to obtain Green Mark Gold award certification in addition to other measures to reduce GHG emissions during the design and operation of the sub-projects. Roof spaces are required to be solar panel ready.  The sub-projects are calculated to each produce less than 25,000 tonnes of CO2- equivalent annually from power consumption.

Solid Waste Management. The company has developed requirements for waste management for the construction phase and requires contractors to develop waste management plans for the segregation, handling and disposal of wastes.  For the operations phase, waste management will align with local requirements and as part of the green building certification will be required to segregate and manage its wastes. The waste management plans shall be incorporated in the ESMS. .

Hazardous Materials. During the construction period there will be limited hazardous materials such as oil, paints and fuels used at the sub-projects.  The company has articulated hazardous materials management practices that align with local requirements, however, should be formalized as part of the ESMS. 

Based on the company’s business plans the sub-projects are not expected to store hazardous materials such as restricted items like explosives or hazardous chemicals/materials.

 Community Health and Safety. The sub-projects are located in existing areas of industrial parks and warehousing close to major roadways with good access to other large industrial estates and manufacturing facilities around Jakarta. 

The sub-projects are not being designed for the storage or handling of large quantities of hazardous materials.

The sub-projects are being developed according to the company’s requirements in relation to design specifications and construction is overseen by a dedicated consultant team to ensure that the building design and construction specifications are adhered to.  The design specifications include international and local standards for structural design, seismic and wind resistance. 

Security Personnel. The sub-projects (in construction and in future for operations) are guarded with unarmed security guards from private security agencies.  For any serious issues, security personnel will be required to report to police stations any issues.

Currently, the sub-projects do not have a formal mechanism for stakeholder engagement or external communications, although contact numbers are available on information boards near the entrances of each sub-project.  The sub-projects, as part of ESAP #5, will develop and implement an external communications mechanism which will describe the sub-project’s procedures to: (i) receive and register external communications (including any grievances from the public); (ii) screen and assess the issues raised and determine how to address them; (iii) provide, track, and document responses, if any; and (iv) capture the lessons learned within the ESMS, as appropriate.

 Contact Person: Jason Teo- Corporate Treasurer     

Company Name: LOGOS Indonesia Logistics Venture L.P.
PT LOGOS Indonesia Deltamas One

                            PT LOGOS Indonesia Prime One    

Address: 50 Collyer Quay, #05-05 OUE Bayfront, Singapore  

Email: JasonTeo@logosproperty.com     

Phone:               +65 6491 0068