Standard Operating Procedure for Critical Habitat Assessment in Toll Road Construction Project 1.

0 Scope This SOP is intended to establish a uniform standard in assessing critical habitat around toll road construction project conducted by PT LMS. 2.0 Objective Critical Habitat Assessment in this construction project is conducted to: (1) Identify the presence of critical habitat around the toll road construction project; (2) Ensure minimal disturbance of this habitat 3.0 References and Legal Requirements - Suplemen ANDAL, RKL & RPL = Penambahan Trase Jalan Tol Cikampek Palimanan = 2011 Edition by LMS - Rencana Pengelolaan Lingkungan (RKL) 2008 Edition by LMS - Rencana Pemantauan Lingkungan (RPL) 2008 Edition by LMS - West Java Toll Road Environmental, Social and Health Impact Assessment (2012) - IFC General EHS Guidelines: Performance Standards on Social & Environmental Sustainability - the Endangered Species Act Legal Requirements: Contractor to familiarise themselves with the Indonesian legal requirements

4.0 Identifying Critical Habitat Critical habitat is a habitat area essential to the conservation of a listed species though the area need not actually be occupied by the species at the time it is designated. It must be designated for all threatened species and endangered species under the Endangered Species Act. An area may be excluded from critical habitat if the benefits of exclusion outweigh the benefits of designation, unless excluding the area will result in the extinction of the species concerned. Thus, in order to identify and designate a critical habitat, the first step is to identify the biodiversity living in that habitat. Next, biodiversity risk matrix can be used to help determining whether an area is a critical habitat or not. The steps to make a biodiversity risk matrix are as follows: 1. determine the biodiversity importance of the site 2. determine the likelihood of impact to the biodiversity from the operations (see impact matrix) 3. determine the ability to mitigate the impact (see impact matrix) 4. determine the potential impact, from the likelihood and the ability to mitigate (see impact matrix) 5. determine the risk category, from the biodiversity importance and potential impact (see risk matrix) Where the classification is unknown, priority must be given to close this knowledge gap.

4.1 Risk Matrix (Biodiversity Importance, applies to areas or species)

Potential Impact (from Impact Matrix) Biodiversity Importance Unknown V e ry H i g h H ig h M o d e ra te Low

Unknown

Global

Critic a l

S ig nific a nt

M e d i um

Lo w

National

Critic a l

S ig nific a nt

M e d i um

Low

Local

M e d i um

M e d i um

Low

Low

Low

Lo w

Lo w

Lo w

Low

4.1.1 Definitions Biodiversity Importance (applies to areas or species): Global Legally protected areas (Ramsar wetlands, World Heritage Sites, World Bank Critical Natural Habitat) and area not legally protected but recognized by NGOs and IUCN as globally outstanding or priority for conservation (Key Biodiversity Areas). (source: www.ibatforbusiness.org) Globally threatened species are only those that are classified as critically endangered, endangered, or vulnerable according to the IUCN Red List (source: http://www.iucnredlist.org) Consider areas and species that are located close enough to be potentially impacted. This includes onsite, adjacent (within 500m), or with relevant ecological connection (use 5km as a guide) to such area National Areas include regionally protected areas (e.g., Natura 2000 in Europe), national protected areas (e.g., national parks, forests), or area of national priority for conservation (national biodiversity strategies or action plans)

Nationally rare or threatened species (according to legislation, or national Red List, for example) Consider areas and species that are located close enough to be potentially impacted. This includes onsite, adjacent (within 500m), or with relevant ecological connection (use 5km as a guide) to such areas

Local Areas of local importance include designated areas (indigenous reserves, state parks, nature preserves), landscape with diverse natural ecosystems, or significant local value. Species of local importance include species unique to local environments, species that use the site for breeding, migratory stops, or are present in high populations. Consider areas and species that are located close enough to be potentially impacted. This includes onsite or adjacent (within 500m). Discussions with local stakeholders can be used to determine if any locally important biodiversity is present at the site. Low

Heavily modified landscape (for example, commercial or industrial), or intensely managed (heavy agriculture, or monoculture)

Unknown A desktop study can indicate whether the site may be located in global or nationally important area, and a rapid biodiversity assessment should be conducted to confirm this and identify key biodiversity features.

4.2. Impact matrix ( is determined by the likelihood of impact and the ability to mitigate that impact)
Ability to Mitigate P o s s i b l e : Ca n b e m i ti g a te d b y c o m p a ny a c ti o ns Unknown Irreversible Difficult Reversible: Easily reversed naturally

Likelihood of impact Unknown

Almost certain

V e ry H i g h

V e ry H i g h

H ig h

M o d e ra te

Likely

V e ry H i g h

V e ry H i g h

M o d e ra te

Low

Moderately Likely

V e ry H i g h

H ig h

M o d e ra te

Low

Unlikely

H ig h

M o d e ra te

Low

Low

4.2.1 Definitions
4.2.1.1 Likelihood of Impact Y-Axis of Impact Matrix. Likelihood of impact to the biodiversity from the operations. Almost Certain: Likelihood is very high that biodiversity will be impacted Likely: It is likely that biodiversity will be impacted Moderately Likely: Likelihood is moderate that biodiversity will be impacted Unlikely: It is unlikely that biodiversity will be impacted 4.2.1.2 Ability to Mitigate Impact X-Axis of Impact Matrix. Ability to Mitigate the impact by company actions. Report on those impacts identified above, i.e. affecting the species or sensitive areas which meet the criteria for the site to be listed as being of Global, National or Local biodiversity importance. Mitigation options include the following actions: 1. Avoidance: choosing options for the activities that have the potential to cause impacts so that these impacts do not occur. This may not be possible in the case of advancing mine faces, but may be possible in the case of infrastructure design. 2. Minimisation: taking measures during operations to reduce the intensity, or duration of an unavoidable impact. This may include actions that are routine good practice in quarry rehabilitation, such as topsoil storage when land is cleared for mining. Species relocation, and extreme example of this sort of mitigation, may be possible and necessary in some cases. 3. Rectification: actions to rehabilitate or restore affected ecosystems. This will usually go beyond what has traditionally been required in a rehabilitation plan. The affected ecosystems should be restored in terms of their structure and function, something which almost certainly requires specialist input. 4. Compensation: if impacts are unavoidable and other options for mitigation are not available, the last resort is a biodiversity offset. Unknown: Ability to mitigate impact is not known Irreversible: There are no options available to mitigate the impact Difficult to mitigate: Difficulty can be either due to extremely high costs/high impact to extraction operations or due to ecological reasons (for example relocation of a particular species is theoretically possible, but still very difficult) Possible, Can be mitigated by company actions: It is possible to mitigate impacts based upon actions taken by company Easily Reversible Naturally: Once operations stop, the impact will reverse itself. The previouslyaffected ecosystem or habitat re-establishes itself in the affected area without the intervention of the company. This will be a rare occurrence.

4.3 Determine Potential Impact Place the Likelihood and Ability to Mitigate classifications on the Impact matrix to determine the Potential Impact category 4.4 Determine Risk Category Place the biodiversity importance and potential impact classifications on the Risk Matrix to determine the Risk Category.

4.5 Determine if site is categorized as Sensitive Once the risk category is defined, it is possible to determine whether a site is sensitive. A sensitive site is one that has biodiversity importance of Global or National and a potential impact of Very High, High, or Medium. An Action Plan to ensure minimal disturbance of such site/habitat is critically needed.