Aceh and Nias Two Years After the Tsunami - UNISDR · Aceh And niAs two yeArs After the tsunAmi On december 26, 2004, the most powerful earthquake in 40 years struck in the Indian

Aceh and Nias Two Years After the Tsunami

2 0 0 6 P R O G R E S S R E P O R T

BRR ANd pARtNeRsdecemBeR 2006

AdVANce ReLeAse VeRsION

ii2006 Progress rePort

pResIdeNt OF tHe RepUBLIc OF INdONesIA

Jakarta, december 2006

pResIdeNt OF tHe RepUBLIc OF INdONesIA

DR. H SUSILO BAMBANG YUDHOYONO

Aceh And niAs t wo yeArs After the tsunAmiiii

United Nations Nations UniesOffice of the Secretary-General’s Special Envoy for Tsunami Recovery

From the United Nations special envoy for tsunami Recovery, President William J. Clinton

my two years as special envoy for tsunami Recovery have been a truly remarkable experience. during this time, I was profoundly moved by the resilience and determination of the people of Aceh and Nias to push forward and rebuild their lives in the aftermath of the tsunami’s shocking devastation.

two years later, the complexity of this massive recovery process has become apparent to all involved, but I am pleased to report that much progress has been made. some 50,000 permanent homes have been built, new infrastructure, such as bridges and roads, have been constructed across Aceh and Nias, nearly 700 new and repaired schools are ensuring that children receive the education they need to confront of the challenges of the future, and over 300 health facilities are providing much-needed medical services. stakeholders are meeting my challenge to “build back better,” as exemplified by the new land titling policy that provides joint ownership between husband and wife.

While we have made great strides in rebuilding lives and communities in Aceh and Nias, as this two-year report demonstrates, ensuring the long-term sustainability of recovery remains a challenge. BRR’s move to a more decentralized posture and the development of a sustainable economic development strategy will be instrumental in meeting this challenge. the provision of social services at new housing sites, the development of Aceh’s human resources, the encouragement of entrepreneurs, and the enforcement of building standards are all critical goals, and these measures will help protect the Acehnese people from vulnerability to disaster and poverty.

the BRR has worked tirelessly to meet these challenges. the agency is genuinely committed to local communities, putting them in charge of their recovery, and has demonstrated an ability to evaluate results on the ground and modify strategy when necessary.

the strengthened collaboration between BRR and provincial and local governments in Aceh and Nias is also key to the recovery effort’s long-term success. Financial resources from Jakarta have been equally vital to this undertaking. most profoundly, the importance of the Indonesian Government’s commitment to the peace process can hardly be overstated. peace for Aceh is the most powerful statement of “building back better” we can make.

Aceh and Nias’ international friends, including UN agencies, NGOs, international financial institutions, private citizens, and foreign governments, also deserve our gratitude for their extraordinary generosity and commitment to the recovery effort. By working together, we have accomplished so much. I have been deeply inspired by the collaboration between the BRR and the international community, and while great challenges remain, I am confident that continued progress will be made toward our shared goal of “building back better.”

One United Nations plaza, New York, NY 10017 UsA

iv2006 Progress rePort

ACkNOWLEDGEMENTSthis report was produced under the guidance of Kuntoro mangkusubroto (director, BRR)

and Eddy Purwanto (Deputy for Operations/Chief Operating Officer, BRR).

the core team for producing the report included:

BRR Kate clifford, Nabila Hameed, Noviana syrianti

AdB Rehan Kausar

UNORc Neil taylor

this report would not have been possible without the efforts of the BRR Operations centre and the UNORc

Information Analysis Section. Thanks are also due to the many agencies and individuals who made joint effort to

produce this overview report, in preparing written material, help in coordination, or review and insight.

AdB eugenio demigillo, Garry shea, Harry King, michael phillips, pieter smidt, Richard Beresford, Ashley Bansgrove

American Red cross dellaphine Rauch-Houekpon

BRR Alastair morrison, (mdF-UNdp Advisor), Auliana Oebit, dharma Nursani, Gerda Binder (UNdp Advisor), Hanief Arie, John Brady (UsAId Advisor), Kevin evans (mdF-UNdp Advisor), mehrak mervar (UNIFem Advisor), puteri Watson, Rahmad dawood, Rosie Ollier (UsAId Advisor), siti Nur Anisa, tedy Jiwantara sitepu,

cARdI danny HarveycARe International melanie BrooksdHV Bram van der Boon, dick JansenmdF sabine Joukessave the children Jon BuggeUNdp Robin WillisonUN HABItAt Bruno derconUNep John carstensenUNIceF mervyn Fletcher, sayo AokiUNORc satoko Nakagawa, steve Ray, Ferry Wangsasaputra, Anissa elok, Hadi mahrina,

muhammad NasirWHO tomasz staregaWorld Bank Andre Bald, enrique Blanco Armas, Ahya Ihsan, Faisal siddik, Harry masyrafah,

Jock mcKeon, dewi RatnasariWorld Vision Katrina peach

Also thanks for the assistance of HeLp, IFRc, UNdp, UNIceF and UNORc in preparing the Nias section; and to

Widjajanto and Diane Scott (USAID) for editorial support.

photographs taken by Arif Ariadi, Bodi ch, photo research by Oni Imelva (BRR/communication team).

translation by Business Advisory Indonesia (p.t. Laksana tata Indonesia) team.

design and layout by surya mediana (BRR/communication team).

Any requests for additional information should be directed to BRR communication department.

Aceh And niAs t wo yeArs After the tsunAmiv

PREFACE 7

EXECUTIVE SUMMARY 9

FOCUS ON ACEH 17

FOCUS ON NIAS 21

MEETING VITAL NEEDS 27

protecting the most Vulnerable 28

Housing and settlements 29

Land and spatial planning 32

PROVIDING SOCIAL SERVICES 35

Institutional development 36

child protection 37

education 38

Health 40

MANAGING DISASTER RISk AND THE ENVIRONMENT 43

disaster Risk Reduction 44

managing environmental impact 46

ESTABLISHING INFRASTRUCTURE 51

enabling Infrastructure 52

Water supply 54

sanitation 54

Irrigation 55

power 55

IMPROVING LIVELIHOODS 57

Aceh’s economy 58

private sector development 59

Rural Livelihoods 62

FUNDING THE RECOVERY 67Financing in 2006 68

sectoral Allocations and Gaps 69

disbursements and Allocations 71

the challenges Ahead 72

MANAGING THE RECONSTRUCTION 75

the Regional programme 76

coordination with stakeholders 78

Information management 78

Tim Terpadu external services team 79

Logistics, supply chain and shipping services 80

PROMOTING QUALITY, INTEGRITY AND EQUITY 83

Quality Assurance 84

Integrity and counter-corruption 85

public Information 86

Gender equity 88

LOOkING AHEAD TO 2007 89

ANNEXES 95Abbreviations 96

Glossary 99

Financial methodological Note 100

2 Year progress data 101

TABLE OF CONTENTS

Aceh And niAs t wo yeArs After the tsunAmi�

On december 26, 2004, the most powerful earthquake in 40 years struck in the Indian Ocean, 150 km off the coast of the Indonesian province of Aceh. Of the 12 nations hit by the resulting tsunami, Indonesia suffered the greatest: 130,000 people were confirmed dead and 37,000 missing. An additional 500,000 were displaced. the physical damage was inconceivable; 800 km of coastline was devastated, entire villages were obliterated.

On march 28, 2005, another tragedy struck when an earthquake hit off the coast of sumatra, near the island of Nias. Nearly 900 people died as a result, the majority of buildings and infrastructure suffered damage, leaving some 40,000 displaced.

the Aceh and Nias disasters wrought massive damage to infrastructure, schools, hospitals, the environment the economy and devastated communities. Initial estimates to rebuild Aceh and Nias came in at Usd 4.9 billion, which adjusted for current levels of inflation is the equivalent of Usd 6.1 billion: the human costs can never be calculated.

the global community responded swiftly and generously. more than Usd 7 billion of aid was pledged, with more than 500 organizations from more than 40 countries working on the recovery effort. the Government of Indonesia stepped up immediately with financial, practical and governmental support. With the hard work and outpouring of support from Indonesia and around the world, the relief phase was tremendously successful at addressing the immediate concerns.

PREFACE

the Government of Indonesia anticipated the reconstruction and rehabilitation phase that was to follow the relief phase, initiated a master plan and established the Reconstruction and Rehabilitation Agency of Aceh and Nias (BRR). this agency, established by presidential decree, headquartered in Banda Aceh, was tasked to restore livelihoods and infrastructure and strengthen communities in Aceh and Nias by directing a coordinated, community-driven reconstruction and development programme.

The joint effort so far in reconstructing Aceh and Nias has been an enormous undertaking. the initial relief efforts of 2005 were followed by extensive reconstruction works that continue to date, and that have had to overcome significant obstacles both related to the sheer extent of the damage and also to the scale and speed of response. this report describes the accomplishments of the many partner agencies – international, national and local stakeholders - that have worked so hard from through 2005 to 2006 to rebuild Aceh and Nias.

Aceh And niAs t wo yeArs After the tsunAmi�

EXECUTIVE SUMMARY

MEETING VITAL NEEDSActivities in 2006 reflected the successful and appropriate transition from relief to recovery and reconstruction. Specific interventions continued to help meet the needs of the most vulnerable: the temporary shelter plan of Action (tspA) ensured all Idps were able to move out of tents and into transitional housing by mid-2006, delivering more than 11,000 shelters under that programme. WFp continued support to combat micro-nutrient deficiencies, particularly among schoolchildren.

Housing reconstruction in 2006 made significant progress, but continues to face challenges. House construction, though slower than expected, has continued throughout 2006, with around 57,000 permanent houses complete in december 2006 supplemented by almost 15,000 temporary houses (including from tspA), representing 50% of the overall housing reconstruction needs. However, delivery continues to expose weaknesses in alignment of spatial and infrastructure planning with construction, quality of construction and capacity of building contractors, and land titling. As was the case in 2005, 2006 has seen declining commitments to rebuild due to increased costs and unexpected delays, highlighting a pressing challenge to meet all identified permanent housing needs. Between march and may 2006, BRR issued Housing and settlement Guidelines to deliver a housing and settlement programme that reflects and accommodates the specific needs and priorities of various beneficiary groups – including squatters and renters. settlement and connecting infrastructure has not always been provided along with housing, and has highlighted the need for more systematic and coordinated settlement development. the need for increased quality assurance and monitoring to ensure construction of durable permanent housing has also emerged.

Land availability and tenure, and efficient spatial planning are critical issues in the sustainable reconstruction and rehabilitation of Aceh and Nias, having direct implications on the capacity to deliver the development of infrastructure,

restore livelihoods and reconstruct housing. Land titling and spatial planning processes have continued at steady pace through 2006 but have not accelerated as much as was hoped at the end of 2005 and greater intervention is required. The BRR and BPN joint land-titling policy is a strategically important initiative that has been developed to help ensure that men and women have equal rights in land ownership, and to promote equal access to the associated economic benefits. BRR will be working closely with BpN and local government to ensure the joint land-titling policy can be effectively implemented.

PROVIDING SOCIAL SERVICESWith the aim of “building back better”, it is important to develop institutional capacity to enhance the local administration and support the sustainable development of Aceh and Nias, ensuring effective provision of the full range of social services. capacity-building in the recovery programme includes the provision and equipping of health, education, administration, justice and police facilities and the development of human resources such as the recruitment and training of staff. progress has been made in physical reconstruction works, and in filling civil service positions across the spectrum of departments. However, the current emphasis on physical delivery of buildings and equipment needs to be complemented by staff development in administration, governance, medical and education programmes.

Child protection is an important issue in the recovery of Aceh and Nias as the earthquake and tsunami increased the vulnerability of thousands of children. Significant work has been done in tracing and reunification, and through the establishment of 21 Children’s Centres. Specific initiatives are underway to help the government, police and social services to adopt more child-sensitive practices and protect children from abuse and exploitation.

Achievements in the education sector have continued throughout 2006, with almost 750 schools built so far, and the vast majority of children

102006 Progress rePort

in school across Aceh and Nias. Initiatives to support improved quality in education have begun through teacher training programmes and the establishment of early childhood development (ecd) centres. during 2006 the framework for longer term improvements in Aceh were defined through the Aceh Five-Year Education strategic plan (2007-2011), which is due to be approved in early 2007.

Health service provision was supported by the continued reconstruction and rehabilitation of health facilities and infrastructure. A total of 324 health facilities have been repaired or reconstructed and efforts to improve the quality of available health services have begun through the training and capacity development of key health workers. For the longer term a broader strategy is required to improve the implementation of safety net policies and the development of preventative health care strategies.

MANAGING DISASTER RISk AND THE ENVIRONMENT Disaster risk reduction is a key factor in a sustainable recovery. A comprehensive framework is being prepared, along with a number of activities already underway including a sea defence programme, to protect coastal environments and support the safe reconstruction of housing and rehabilitation of agriculture, and the tsunami early Warning system (teWs). particular areas for concern include community awareness and use of community-based planning to provide safe areas and escape routes, and quality of building construction. Flood management and drainage problems are emerging, indicating need for better drainage maintenance, including by households, and that drainage has not always been integrated into settlement design. Urban drainage schemes are underway but under-resourced.

Both the disasters and the reconstruction are having significant impact on the environment, including water contamination, rehabilitation of land and coastal eco-systems, waste management, extensive timber logging and sand and gravel extraction. the tsunami Recovery Waste management programme (tRWmp) has supported the resumption of municipal solid waste management services and the development of tsunami waste recycling initiatives. more capacity is needed to undertake project environmental impact assessments in the reconstruction effort, and for

longer term environmental management. A strategic environmental Framework (seF) has been developed to outline polices, structures and operational guidelines to support environmentally sound reconstruction.

ESTABLISHING INFRASTRUCTUREThe infrastructure base in Aceh and Nias remains insufficient to support fully the reconstruction process. Over 1,500km of roads have been constructed, but remote areas are still isolated without transport networks, particularly for building supplies. Works on the main West coast road are underway. Good progress has been achieved in getting all airports and seaports operational, including completing new construction at malahayati port and Meulaboh jetty. Some ports only have temporary facilities and will need to be upgraded, but designs and improvements are underway for various strategic locations. similarly airports are operational, whilst improvement works are going on. Investments in roads, air and sea terminals is important both for the huge supplies being transported during reconstruction, and also for economic development.

Significant work has been completed to improve water supply and sanitation, with many agencies upgrading facilities provided during the emergency phase. more consideration is needed of the longer-term availability of water sources and the sustainability of sanitation systems. Restoration of power supply is underway, already serving urban areas consistently, and major rehabilitation of irrigation systems is being carried out, which will also contribute to recovery in the agriculture sector.

the Infrastructure Reconstruction enabling programme started tenders for consultants in 2006, and together with the co-funded Finance Facility will be a vehicle for broader and more strategic planning, design and management of infrastructure development.

IMPROVING LIVELIHOODSThe tsunami and earthquake disasters have had a pronounced effect on the economies of Aceh and Nias, both in terms of damage to industry and infrastructure and the economic impact of reconstruction activities. there was a 13% decrease in the overall growth rate of Aceh in 2005, but this included

Aceh And niAs t wo yeArs After the tsunAmi11

a worrying decrease of 9% in the agricultural sector, exacerbating rural poverty, along with a 45% increase in transport and communications, likely to be due to the reconstruction activity. during 2006, although wages have increased in Aceh, the rate of inflation shows prices have risen more sharply in the province than the rest of Indonesia. The increased cost of living offsets the benefits of higher wages. the volume of imports that resulted from large-scale reconstruction, coupled with decreased export capacity, has resulted in a considerable trade imbalance in the province. engaging provincial and local government in the ongoing development of a sustainable and long-term economic development strategy for Aceh is helping to support an effective transition to longer-term development planning and ensuring future economic growth in the province.

Private sector development initiatives are underway and are intended to support the participation of local businesses in the reconstruction effort, and to develop local business skills and capacity for the longer-term. Nias continues to have a weak infrastructure base to support business, and Aceh has had a difficult business environment for years linked to the conflict. The Law of Governance of Aceh (LOGA) presents a major opportunity to improve the enabling business environment. Specific initiatives to improve the capacity of and opportunities for local small and medium enterprises include the provision of microfinance and credit.

Restoration of rural livelihoods is critical to support the effective transition from the relief phase to longer-term development, as half of the rural population is living in poverty. Rehabilitation of 50,000 hectares of agricultural land is a major achievement, but investment is urgently required to tackle poverty and realise the potential of the agriculture and fisheries industries.

FUNDING THE RECOVERYA more up-to-date assessment of financing needs based on changes in operational costs, inflation and other factors is probably necessary. The financial in-flows to support reconstruction after the tsunami were unprecedented with Usd 8 billion committed from the Government of Indonesia, NGOs and donors. the initial damage and loss assessment of USD 4.5 billion is adjusted to USD 6.1 billion with inflation. Approximately USD 2 billion has

been disbursed up to end of 2006. Significant gaps remain across sectors and in some geographical areas including the west coast, south, and Nias. With almost 75% of funds already allocated to projects there is less scope for major adjustments to match outstanding needs.

MANAGING RECONSTRUCTIONDuring the early part of 2006, BRR made the significant decision to develop and pursue a decentralised programme, with widespread stakeholder support. the regional approach was adopted to help ensure reconstruction and rehabilitation in Aceh and Nias is sustainable, to work closer with local government in preparation for BRRs exit, and to be better informed about needs and priorities at local level. Regional heads were appointed mid-2006, and Joint secretariats with local government are being set up. so far, the coordination and Joint secretariat establishment have been constrained by the emphasis in BRR on implementation of government projects.

Coordination has continued to improve during 2006, including through the establishment of the Kecamatan coordination and Implementation mechanism (KcIm), and multi-stakeholder participation in sectoral working groups at both provincial and district level. At sub-district level the establishment of the KcIm in many parts of the West coast has been critical in supporting the BRR regionalisation strategy. engaging local stakeholders, the KcIm provides the facility to collect locally generated information through the Kecamatan Reporting system (KRs) to enhance planning and coordination, and engage locally available capacities to resolve constraints. sectoral coordination at district level has been strengthened through the active participation and leadership of local government.

Information is a vital enabler for the recovery effort and for longer term planning. considerable efforts and resources have been deployed to strengthen information management through ongoing technical improvements to the publicly accessible RAN database, the transition of the spatial Information and mapping (sIm) centre to BRR and continued support from UNORc through the creation of the Information Analysis section (IAs). the IAs has also facilitated the Indonesian Government’s participation in the international tRIAms initiative to collate recovery data from all tsunami affected countries. efforts to improve information management have focused on improving


the quality and accuracy of available data, supporting the analysis of information to support effective coordination and planning, building long-term capacity in information and analysis amongst local government institutions and supporting regional offices and Joint Secretariats to enhance the monitoring of recovery and reconstruction activities across Aceh and Nias.

The Tim Terpadu external services team has provided support throughout 2006 to assist foreign nationals and organisations working in the recovery effort. It is the first initiative of its kind in Indonesia, established in december 2005, streamlining Immigration, customs, Legal and consular services, provided free, and incorporating various legislative measures to assist the international community. In 2006 more than 7,000 individual immigration requests have been processed.

Logistics are central to reconstruction activities. transport in particular continues to present major challenges, but significant progress has been made in the supply of timber, including help desk facility and other support services under Tim Terpadu, and in the establishment of the shipping service managed by WFp. the potential impact of the ongoing reconstruction of housing and upcoming major infrastructure projects on the supply chain remains a concern. NGOs have shouldered many logistical difficulties and learned from experience, however many NGOs and their contractors/sub-contractors still lack logistical capacity, which could make their delivery vulnerable to further pressures on the supply chain.

PROMOTING QUALITY, INTEGRITY AND EQUITY2006 has seen increasing understanding about quality problems. Of particular concern is poor construction quality, in general as a result of low contractor capacity and poor supervision. the problems are recognised and being addressed through training and monitoring, but partners must continue to be vigilant and ensure that resources are assigned. BRR and others have learned lessons about the procurement processes needed for this scale and speed of reconstruction, and BRR were provided with a special decree to make direct appointments to contractors to speed up housing delivery. Anti-corruption remains a prime concern in the recovery programme. BRRs Anti-corruption Unit processed over a thousand complaints in 2006, and the presence of the supreme Audit Agency and corruption eradication commision in Aceh maintains the high

profile of counter-corruption initiatives. BRR is actively working with partner organisations to ensure complaints management systems are in place and effective.

Good public information is vital. Agencies that have succeeded in maintaining a dialogue with the beneficiaries with whom they are working have found that given proper information and explanation, beneficiaries are willing to show patience and understanding when it comes project implementation.

In response to concerns regarding gender equity, BRR launched its policy and strategy paper on “Promoting Gender Equality in the Rehabilitation and Reconstruction Process”. the paper has been developed in partnership with other stakeholders, including the Gender Working Group and a coalition of women’s organisations, to support gender-mainstreaming in policy development, planning and implementation across all sectors. short term priority programmes, with a specific focus on the most vulnerable women, need to be developed.

LOOkING AHEAD TO 2007In meeting vital needs for housing, validation of beneficiaries and land titling are two critical bottlenecks that need attention in 2007. coordination in the housing sector has improved but housing and planning need to be better integrated with other sectors, and activity in 2007 needs to follow a review of gaps in housing provision and associated infrastructure, particularly in remote areas. more investment is required in quality assurance, and in incorporating environmental and disaster risk concerns in settlements.

The provision of social services will be enhanced through programmes to develop the capacity of local government and institutions. Following provision of equipment and construction of facilities, the government needs to develop capacity to manage those assets well and improve quality of services by developing human resources and management systems.

Managing disaster risk and environmental impact are central to “building back better”. the broad frameworks drafted for each should be ratified and implemented in early 2007, to improve the integration of both disaster risk reduction and environmental management across the reconstruction


programme. Additional capacity is needed to tackle the bottleneck of environmental impact assessments required for all projects.

In infrastructure, the IREP programme and finance facility will start to deliver in 2007. It will demonstrate the model for improving infrastructure planning and implementation for reconstruction, for longer-term investment to support economic development and to link government capacity building with physical development.

Livelihoods in Aceh and Nias are still vulnerable, and interventions in 2007 must start to address the long-term economic impacts of the tsunami and reconstruction process and poverty reduction. critical attention must also remain on enhancing the livelihood opportunities in the short-term, particularly in agriculture and fisheries where major investment is needed given the extent of rural population living in poverty. provincial and local governments need to develop and articulate a common vision about the economic development of the region.

Effective management of reconstruction in 2007 and beyond is dependent on BRR leadership, continued and better coordination and improved information management. All agencies must be increasingly careful and rigorous in setting realistic targets, demonstrating real progress and results, and finding ways to work effectively with local government to achieve the right balance between the process of enhancing capacity and the delivery of outputs.

2007 will include the planning of transition and exit strategies, and for some agencies the implementation of those strategies. the recovery programme will continue to become more broad-ranging and complex as it addresses cross-cutting themes and longer-term development goals. communities are key partners in looking beyond the reconstruction to developing the longer-term goals for economic and social development in Aceh and Nias.


2004 Damage 2005 & 2006 progress

MEETING VITAL NEEDS

167,000 dead or missing from tsunami

500,000 displaced from homes in Aceh

900 dead and 13,500 families displaced after march 2005 earthquake in Nias.

80,000-110,000 new houses in Aceh needed and 13,500 in Nias

•

•

•

•

during 2006, more than 65,000 Idps have been moved out of tents into transitional housing

15,000 transitional houses built

57,000 permanent houses will be built by the end of 2006 in Aceh and Nias

17,400 land titles have been signed and 134,300 parcels have been measured, all in Aceh

•

•

•

•

PROVIDING SOCIAL SERVICES

more than 2,000 school buildings damaged

Approximately 2,500 teachers died

more than eight hospitals damaged or destroyed

114 health centres and sub-centres damaged or destroyed

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•

•

•

623 permanent schools in Aceh and 124 in Nias built/repaired, supplemented by 379 temporary schools

more than 5,100 teachers trained in Aceh and 285 teachers trained in Nias

305 health facilities in total built/rehabilitated in Aceh and 19 in Nias – including satellite health posts, health centres and sub-centres damaged in the disasters and 3 hospitals in Aceh and 1 in Nias

•

•

•

MANAGING DISASTER RISk AND THE ENVIRONMENT

5,765,000 cubic metres tsunami waste created

• more than 1 million cubic metres waste cleared and processed, including reclaimed rubble for 52km road and almost 17,400 m3 reusable/recyclable timber

Over 33km coastal protection built in Aceh and over 24km saltwater dykes

tsunami early Warning system being tested

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•

•

PROGRESS SUMMARY



ESTABLISHING INFRASTRUCTURE

3,000 km of roads impassable

14 of 19 seaports badly damaged

8 of 10 airports damaged

120 arterial bridges destroyed, 1,500 minor bridges

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•

•

•

1,200 km of all type of roads in Aceh and 300 km in Nias have been built/repaired.

121 bridges in Aceh and 37 in Nias have been repaired

All ports operational; 11 ferry terminals and harbours in Aceh and 3 in Nias are built/under development

All airports operational; 5 airports and 1airstrip in Aceh and 2 in Nias built/under development.

•

•

•

•

IMPROVING LIVELIHOODS

Usd1.2 billion damage to productive sector

Projected economic decline of 5% in Aceh; 20% in Nias

100,000 small business persons lost their livelihoods

4,717 coastal fishing boats lost

More than 20,000 ha fish ponds destroyed or out of action

60,000 farmers displaced

more than 70,000 ha agricultural land damaged

•

•

•

•

•

•

•

69 % of the male labour force and 36 % of the female labour force actively engaged in urban areas.

68 % of the male labour force and 45 % of the female labour force are working in rural areas of both Aceh and Nias.

4,420 fishing vessels have been replaced

6,800 ha of fishponds rehabilitated

more than 50,000 ha of agricultural land have been rehabilitated

•

•

•

•

•

Source : Aceh and Nias One Year After the Tsunami, December 2005 See Annex : Progress Tables for Exact figures, sources and breakdown

FOCUS ON ACEH


STATEMENT FROM THE GOVERNOR OF THE PROVINCE OF NANGGROE ACEH DARUSSALAM,

DR. MUSTAFA ABUBAkAR

Contextthe earthquake of december 2004, and the huge tsunami it generated, created widespread destruction and devastation throughout the province of Nanggroe Aceh darussalam. As a result, it brought forth one of the greatest humanitarian outpourings in living memory. Usd 8 billion was pledged for Aceh and Nias relief and recovery.

to effectively manage the unprecedented level of financial assistance pledged by the global community in the face of a weakened local government, the Agency for Reconstruction and Rehabilitation (BRR) Aceh and Nias was established and commenced operations in may 2005. As the designated Vice chairman of BRR, it is my responsibility to assist in the Agency’s optimal performance.

three months after BRR initiated operations in Aceh, we experienced another effect from the natural disaster of december 2004. Although a direct cause and effect relationship is difficult to determine, it is without question that the disaster was instrumental in bringing together GOI and GAm for the historic signing of the Helsinki peace Accord in August 2005.

to facilitate implementation of programs geared toward reconciliation and reintegration, I created in February 2005 the Aceh peace-Reintegration Agency, BRA. As the chairman of BRA, it is my responsibility to oversee the successful implementation of initiatives that will foster the reintegration of ex-combatants, non-combatants and amnestied prisoners into civil society and to undertake integrated programs aimed at generating employment and improving livelihoods for thousands of victims affected by this decades-long conflict.

Issuesthe massive reconstruction and rehabilitation effort that has been on going for nearly two years has achieved much. success stories and challenges we still face are dealt with in other sections of this commemoration report. However, I do want to make special mention of the goal I set to have all those living in tents be moved to temporary shelters by mid-2006. I can proudly say we

successfully achieved this objective, a combined effort between the provincial and district governments working in close coordination with UNORc and a number of other partners.

Building of permanent housing is well underway. the challenges we faced in providing homes as soon as possible has meant that we did not have the luxury of time to do rigorous and detailed spatial planning with construction sometimes outpacing sound planning. However, I and partner agencies in the reconstruction process will focus in 2007 on correcting any weaknesses in planning to ensure that our communities and their settlements are being developed and provided with services in a sustainable way.

We are also implementing key initiatives addressing the equally important reconciliation and reintegration process, ensuring the peace created through the August 2005 Accord is sustained.

For many months these two processes have operated fairly independently of one another. Yet the objective at the end of the day is to build back a better Aceh. Knowing that this is our ultimate goal, I view myself as the “development integrator” trying to slowly merge these two interdependent processes into a coherent, comprehensive development strategy for the entire province.

On one hand, I have the BRR focusing on the critically important reconstruction and rehabilitation process, a process leading to prosperity. One the other hand, I have the BRA addressing the difficult challenge of reintegration, a process leading to security. It is my intention and desire to initiate stronger synergy between BRR and BRA activities.

We often hear that there can be no sustainable reconstruction and rehabilitation without peace and no sustainable peace without a solid reconstruction and rehabilitation process. Aceh is living proof how true this statement is.

successful reconstruction and rehabilitation through BRR remains the number one priority for Aceh. Within this priority, the rebuilding of major infrastructure is certainly the most important component.

Although rebuilding infrastructure throughout the province is critical, current and future focus must be on expanding opportunities for local economic development and employment generation.

On December 11, 2006 Aceh held its first ever democratic election. millions of people selected who they wanted to

focus on Aceh

Aceh And niAs t wo yeArs After the tsunAmi1�

professionally, honestly and transparently govern their fifteen districts, four municipalities and one province for the next five years. Unique to Aceh, and to all of Indonesia, was the opportunity for candidates to run under independent party banners. this democratisation process is key for the long-term health of the province.

I also declared 2006 as the Year of eliminating corruption in the province, a worthy goal that has proven difficult to achieve but absolutely necessary if we are to build back a better Aceh.

civil service reform is a priority. I have implemented a number of important initiatives in the interests of transparency and accountability. In appointing those to the highest levels of local government, in particular mayors and district heads, care is taken to ensure they support and implement my programme of clean government. I have also developed an appropriate performance-based incentive programme for staff, built in to our HR procedures. And finally, all civil servants, whether those currently serving or newly recruited, are required to support and uphold efforts at anti-corruption. I am working with the BRR and others more broadly in improving the overall performance and capacity to serve communities in Aceh. Civil service reform is not just a slogan; it is a reality.

OpportunitiesThe prosperity generated from the huge inflow of financial resources for reconstruction and rehabilitation, the dividends to be gained as a result of the peace accord, and the passing of the Law on Governing Aceh collectively create unprecedented opportunities for us as we move forward.

there is a critical need for developing Acehnese human resources, in particular within the government structures and the private sector; wherever and whenever possible, utilization of local resources must be prioritized. Capacity building is not just an outcome but a process that requires sufficient time for it to achieve its expected results.

We shall use 2007 to initiate a comprehensive planning process, including instituting appropriate financial management processes and procedures, in preparation for the receipt of additional funds generated from receiving 2% of the national general allocation fund (dAU). the funds coming in 2008 and onwards will be substantial.

We shall also focus on designing an appropriate BRR exit strategy. there must be a gradual transition from the current situation with BRR leading up to their exit in 2009. An abrupt departure without any forward planning must be avoided at all cost. Fortunately, we have sufficient time to implement the components of a solid exit strategy. But we cannot be complacent thinking this process will unfold on its own. It must be driven by solid leadership and an assurance that the numerous capacity building measures have been properly instituted.

Finally, I want to express my sincere appreciation to all the stakeholders (domestic and international) who have invested so much time, money and human resources to implement initiatives under the rehabilitation and reconstruction umbrella and likewise to our colleagues involved in providing assistance targeted for the undertaking programmes as part of the complex and challenging reintegration process.

this spirit of global solidarity has made it easier for those of us in Aceh to again be outward looking as opposed to the many years we spent isolated from the international community. this is truly the dawning of a New Aceh.

FOCUS ON NIAS


RECOVERY IN NIASOnly Usd 235 million has been pledged for Nias although Usd 400 million is required to repair damage. However, given the poor state of Nias prior to the disasters, an estimated investment of Usd 1 billion is needed – half of which is required for rebuilding transport infrastructure.

Rebuilding the economy is best served by implementing physical reconstruction as soon as possible and accompanying it with the restoration of livelihoods which are heavily dependent on small-scale fisheries and agriculture, and which were weak prior to tsunami and earthquake due to isolation from the markets. many international agencies are concerned about livelihoods and are contributing through replacement of lost assets and services. Restoration of coastal tourism is another neglected opportunity for Nias.

the gradual recovery of Nias is visible in the rehabilitation and reconstruction of roads, bridges, houses and institutions. In 2006 housing construction has significantly picked up, with almost 5,400 new and 350 non-permanent houses built by end 2006. the recovery programme in Nias is supported by 42 International NGOs, 24 National NGOs, 13 United Nations agencies, 8 government agencies and many others collectively seeking to realize the goal of “Building Nias Back Better”.

Nias directing its own ReconstructionImplementing partners and BRR have devolved significant decision-making to management based in Nias. It had the first BRR decentralised regional office, established in June 2005. Whilst emergency relief and initial reconstruction was provided by UN agencies, international and national NGOs and the military, BRR’s decentralisation from head office in Aceh to Gunung Sitoli brought the BRR reconstruction programme decision-making closer to local government, implementing partners and communities. BRR is now establishing a representative office in Teluk Dalam in the south. Having the authority to direct recovery has enabled organisations to work together more efficiently, and in turn allow decision-making at the sub-district level and by people in the field. Field managers can be given discretion to cater to individual family needs in housing; to consider the needs of pedestrians and landowners beside roads; or to work directly with school committees. the BRR-AdB partnership is emphasising the redevelopment of coastal livelihoods through its participative programme of community contracts backed by technical advice for sustainability.

BRR Nias is giving priority to making the district government systems work, especially using the government funds that flow through BRR to provincial and district level administrations. through block grants, BRR supports and strengthens local governments to assume responsibility, particularly for meeting the middle-level infrastructure needs. If local governments are particularly weak or failing to perform well, BRR will invoke its own direct implementation capacity to ensure the pace of reconstruction is maintained.

A data retrieval programme has been launched to record information from Nias regarding nutrition, life expectancy, mortality rates, health and livelihoods. supported by several international organizations, BRR has also conducted a local survey and training in information management, aiming to ensure that the statistical information gathered can be used by local government to plan appropriate development programmes in future.

Coordinationcoordination between BRR, the UN agencies, and the international and national NGOs has strengthened over the last year in Nias. Working remotely on an island with the poorest and most underdeveloped districts in North sumatra province has encouraged closer cooperation and solidarity between the organizations who are working on recovery projects. All share the same challenges – damaged infrastructure, poor or non-existent communications, and logistical difficulties. coordination and cooperation is vital. consideration for cultural and language issues in coordinating the implementation of projects with communities, village heads and traditional cultural leaders has been one of the most difficult and challenging tasks, especially given the complex land ownership and access problem in Nias. However, the improvements in coordination are making a difference in getting support to the poorest and most marginalized communities and in finding solutions to the many problems that organizations face in carrying out their projects.

At a district level, early 2006 saw a transition between the humanitarian coordination meetings that had been convened by BRR and UNORc (previously by OcHA in 2005) and the establishment in April 2006 of BRR’s Recovery coordination meetings in Gunung sitoli. these meetings have provided organisations with an opportunity to be briefed on BRR’s on-going reconstruction plans and to raise issues affecting the implementation of their projects.

focus on niAs


ChallengesNias’ isolation means building materials are either difficult to obtain in sufficient quantities at affordable prices for the local population, or periodically unavailable. sporadic fuel supplies at exaggerated prices and remoteness from markets have increased Nias’ economic problems. In most cases, the primary cause of supply shortages is insufficient and irregular shipping services on the main supply routes. the port facilities in Gunung sitoli are too small to handle the volume of materials being shipped and as a result it is extremely congested. The new jetty in Gunung sitoli offers an alternative to the main port, but the jetty can only service small conventional vessels.

For inland transport in Nias, the key bottlenecks are the sporadic deliveries, lack of fuel pumping stations, high cost, small size and capacity of the trucking fleet, the poor state of the road infrastructure, and the lack of road access to many communities. The material flows required to complete the reconstruction activity will require additional trucks, better roads and an improved fuel supply.

One of the biggest challenges of 2006 has been coordinating the logistics of bringing in large supplies of timber to Nias for permanent housing and temporary shelter construction, as well as for boats. UNHcR in Nias and medan purchased and shipped legal supplies of timber from Kalimantan. With logistical support from WFP Shipping Service and IOM’s trucking fleet and despite all the insurmountable obstacles and delays they distributed 390,038 pieces of timber (or around 7,000 cubic metres) to 11 organizations with construction projects throughout the island, including to BRR. Similarly, the IFRc’s operations to provide steel frames and bring in supplies of timber from international sources to build temporary shelters for those Idps still living in tents was an enormous undertaking that would not have been successful without the close coordination between the IFRc, UNORc, BRR and the international and national NGOs.


Special Considerations for Nias Housing even before the disasters, many settlements had inadequate sanitation and access to clean water, despite a large number of springs and small rivers. Limited sanitation is exacerbated by poor hygiene practices, people using the backyards and gardens as places to throw both their domestic solid waste and waste water. the resulting environment creates an ideal breeding ground for malaria, cholera, dysentery and other intestinal diseases. The Nias housing project, therefore, provides a real opportunity to “build back better” by integrating improvements of access to clean water and better sanitation, and educating the public to the risks of current habits, and ways to reduce potential hazards.

Housing delivery in Nias aims to work with traditional social systems, considering that traditional leaders still have considerable influence. The dominant form of land rights is adat, or traditional rights, where land is owned by the clan and the right of use is controlled by local

leaders. In this system, the position of women’s property rights is weak even though their presence as working contributors to family economies is strong. Unlike Aceh, inheritance of rights to land and property is through male survivors. BRR Nias is working to ensure special efforts are made to ensure that women do not lose out in receiving assistance, especially widows and single women heirs.

sensitivity to local traditional architecture and village planning is important in both rehabilitating and building new housing. traditional Nias settlement layout includes a broad stone-paved street, called an ewali which serves multiple functions, including meeting areas for informal and village meetings, and a hoso, for traditional stone jumping. Many villages still have a substantial number of traditional houses, many of which have been damaged and need to be preserved, that preservation also being in the interest of attracting tourism.

focus on niAs



MEETING VITAL NEEDS

900 dead, 6,000 injured and 13,500 families displaced and in need of houses

• 5,440 permanent houses built/repaired and 350 non-permanent/transitional houses

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755 out of 879 schools damaged or destroyed

two hospitals damaged and more than170 facilities required repair

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124 permanent schools built/repaired, supplemented by 214 temporary schools

285 teachers trained

1 hospital and 19 health facilities rebuilt/repaired

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Nearly all water distribution networks in sub-districts and district capitals were damaged

3 bridges, 800 km of district roads and 266km provincial roads damaged

12 large and small ports/jetties destroyed

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Rehabilitation of drinking water distribution networks underway in 5 locations

309 km road built /repaired, repairs underway on 250 km

37 bridges built/repaired

3 ports/jetties and 2 airports built/under development

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Irrigation networks damaged affecting 90% of people’s livelihoods

219 markets, shops and kiosks destroyed

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518 fishing vessels have been replaced

1,510 ha of agricultural land have been rehabilitated

Irrigation projects underway in 13 villages

88 food stalls and temporary markets established

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NIAS PROGRESS SUMMARY

MEETING VITAL NEEDS


167,000 dead or missing from tsunami

500,000 displaced from homes in Aceh

900 dead and 13,500 families displaced after march 2005 earthquake in Nias.

80,000-110,000 new houses in Aceh needed and 13,500 in Nias

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during 2006, more than 65,000 Idps have been moved out of tents into transitional housing

15,000 transitional houses built

57,000 permanent houses will be built by the end of 2006 in Aceh and Nias

17,400 land titles have been signed and 134,300 parcels have been measured, all in Aceh

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PROTECTING THE MOST VULNERABLE the recovery and reconstruction, in particular that of physical assets, during 2006 has picked up momentum but certain vulnerabilities remain. the recovery community must also continue to attend to the needs of the most vulnerable even whilst the main focus in 2007 will continue to be the reconstruction of houses and infrastructure and medium term development. particular care must be given to ensuring that the recovery and reconstruction does not leave the most vulnerable behind, but rather places their welfare at the forefront of the recovery and reconstruction agenda.

Affected populations without permanent housing solutionsWith the recognition of the pace and constraints affecting permanent housing delivery, the temporary shelter plan of Action (tspA) was launched in 2005 to provide an acceptable and appropriate transitional shelter solution. the main component of tspA was the provision of up to 20,000 temporary shelter units provided by the International Federation of Red cross/Red crescent and delivered and constructed via a consortium of 33 implementing partners including BRR, Red cross societies, NGOs, UN agencies and donor institutions. challenges have included the provision of water and sanitation facilities and electricity, procurement of timber and identification of relocation sites, but these continue to be tackled by implementing partners and the government, and the implementation of tspA has demonstrated excellent collaboration in providing extraordinary assistance in response to the prolonged and deteriorating living conditions of Idps in tents. the implementation of tspA picked up speed during the first half of 2006. Passing a milestone that all those that started 2006 living in tents were out of tents and in appropriate transitional housing by the middle of 2006 is testament to this collaboration. to this date, over 11,000 temporary shelter units have been delivered

The CARDI Temporary Settlement Monitoring project, which surveyed 439 temporary settlements between August and October 2006, found over 18,500 households remaining in barracks, and over 20,000 households who have returned to their home area are not yet in permanent accommodation. these households are mainly living in shelters they have constructed themselves and,

like Idps who remain in host communities, they are more scattered and less visible. It is important that their needs for adequate water sanitation, permanent housing and assistance to restore their livelihoods are met.

BRR, local government and recovery organisations are striving to improve the living conditions in barracks. Idps continue to move among varying transitional shelter options. the challenge will be how to identify the most vulnerable and apply targeted responses whilst ensuring equity and fairness. A cross-sectoral beneficiary-focused approach is needed to integrate the reconstruction of houses, the restoration of livelihoods and the maintenance of social safety nets so that beneficiaries are assisted in building back their lives.

Micro nutrient deficiencies and public health issuesthe World Food programme (WFp) commissioned a cross sectional survey in 2006 in urban and rural areas of Aceh province and Nias to assess the health and nutritional status of primary schoolchildren and their cognitive performance1. the survey results exposed that in Aceh, the prevalence of malnourished children ranged from a mild to high public health problem. Anaemia was found in 27% of Acehnese children and 28% of Nias children (moderate public health problem). As for the proportion of sub-clinical vitamin A deficiency, Aceh and Nias were 17% and 33% respectively. the vitamin A deficiency was considered severe on Nias. Malaria and helminthes infection were also very high on Nias, 46% and 75% respectively. In Aceh the prevalence was 12% for malaria and 53% for worm infestation. Further, the survey revealed that the prevalence of underweight, stunting and wasting in Aceh were 21%, 27% and 8% respectively. While in Nias, the prevalence was 22%, 36% and 2% respectively. the prevalence of stunting and underweight in Nias was considered as a high public health problem while prevalence of wasting was considered low. 20% of primary school children in Aceh had low cognitive performance. the percentage was higher among stunted children. On Nias Island, 40% of the children surveyed had low cognitive performance.

Recognizing the importance of mitigating micro nutrient deficiencies and improving the cognitive performance of schoolchildren, WFP continues to provide fortified biscuits (fortified with 9 vitamins and 5 minerals) to primary schoolchildren in 9 districts in Aceh province with a caseload of 300,000 students.

1 Further to the UNICEF nutritional survey conducted in 2005 that identified the prevalence of underweight, stunting and wasting children under the age of 5 years in Aceh was 41%, 38% and 8% respectively. While in Nias, the prevalence was 48%, 48% and 11% respectively

meeting VitAl needs


HOUSING AND SETTLEMENTS two years after the disaster of the december 2004 tsunami and the march 2005 earthquake, the housing sector has shown significant progress but gaps still remain. the sector suffered almost Usd 1.4 billion in damages, which accounted for over 30% of the overall damage and losses. Hence, it will also require the most intense and greatest of efforts to restore the province to its initial state.

the housing sector poses the greatest short term challenges for all donors, international agencies, and NGOs which are involved in this mammoth reconstruction task. Housing requirements were more than 120,000 new houses and rehabilitation of almost 85,000, both medium and heavily damaged homes. Over 500,000 people were left homeless and until today, many victims still continue to occupy barracks and other temporary shelters despite all efforts to reconstruct quality houses in the shortest time possible.

the housing reconstruction programme revolves around key issues, namely:

Households which completely lost their houses and their land;

Houses which have become non-repairable and need to be rebuilt;

tenants who lost the accommodation they were renting; and

squatters who lost their temporary shelters

To accommodate the different beneficiary groups created as a result of the housing disaster, the BRR issued four guidelines as part of the Housing settlement framework between march and may 2006 to provide a uniform mechanism for all actors involved. the guidelines provide clear and distinct compensation schemes for each of the beneficiaries

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Recovery through the kecamatan Development Programme

the Government of Indonesia’s Kecamatan development programme (Kdp) empowers local communities, strengthens the capacities of local government institutions, and provides village infrastructure and working capital in order to help alleviate rural poverty. Kdp provides unearmarked block grants to the villages of a sub-district and through a facilitated, participatory planning process, villagers themselves set priorities, allocate funds for prioritised needs, then implement the subprojects and account for the funds.

This World Bank project has operated in Aceh and Nias since 1998. Immediately after the tsunami hit, the large network of project consultants and village facilitators assisted with a very comprehensive damage and loss assessment. After the tsunami, a decision was made to expand Kdp to all rural villages in Aceh and Nias, tsunami affected or not but in line with the government’s policy that recovery would be community-based. since mid-2005 Kdp has worked in all the villages of the 221 rural sub-districts of Aceh and all 22 sub-districts of Nias with a team of approximately 650 local consultants and over 14,000 village facilitators, half of whom are women.

since mid-2005 Kdp in Aceh has disbursed about Usd 50 million dollars to the target villages level. In late 2005 and 2006, village teams have built or up-graded local-level infrastructure including almost 1,800 km of rural roads and over 700 small bridges, 1,136 irrigation systems, over 350 drinking water systems, almost 500 public toilets and bathing facilities, buildings for 220 schools, 30 health clinics, eight markets and lots of village Koranic schools (tpA) and meunasahs. Over 6,000 scholarships have been granted. Almost 3,700 women received working capital. Over 3.1 million person-days of work were generated on the construction of the village infrastructure the project funded.

The project will continue to fund technical assistance (TA) for Aceh in 2007, but block grants for planning and actual village investments are coming from the Badan Reintegrasi-damai Aceh (BRA) (about Usd 62 million for all 221 sub-districts in Aceh) and the Badan Rehabilitasi dan Rekonstruksi (BRR) (an additional approximately Usd 32 million for the 87 most directly affected sub-districts in Aceh). Kdp in Nias will be fully funded from Central government, both TA and block grants. In Nias a new MDF KDP project for the reconstruction of houses and schools is also approved and implementation will start in January 2007.


Community Satisfaction with Housing

In 2005, BRR encouraged Universitas syiah Kuala, in co-operation with UN-HABItAt, to provide third party monitoring and evaluation. survey teams have been going out since late december 2005 to look at the performance of housing programmes on site and at the progress of settlement recovery within villages in a broad sense.

During 2006, the outcomes and impacts of more than 60 housing programmes built in late 2005 and the first half of 2006, providing 23,000 houses in 161 villages in Aceh, were assessed against broad-scale progress, perceived quality of the construction work and provision processes, and the satisfaction levels of the beneficiaries.

The results, published in July 2006, informed the housing programme overall, and quantified some concerns. Overall, most houses were neither considered to meet in full the requirements of the official building code issued by the Indonesian Government, nor considered unsafe.

Most beneficiaries living in districts outside Banda Aceh were satisfied with their new home, its size, the way it was provided and the way they participated in the process. this indicates that the community-driven policy of the Government and the practice of many multilateral and non-governmental organisations has had a positive impact. the decision of BRR to let people return to their villages and to participate in the rebuilding was also been perceived by beneficiaries as right and helpful to start rebuilding lives.

In Banda Aceh, the results were less positive. people in Banda Aceh do not receive less assistance than those living outside the city – on the contrary, but results showed lower construction quality on average, a majority of beneficiaries dissatisfied and processes considered less accountable.

settlement recovery still has a long way to go in Aceh and Nias. It has not started in some areas of the West coast, in small hamlets and in many areas of Nias. But even where reconstruction is well underway such as in Banda Aceh, these results illustrated to recovery agencies the attention required on better planning and infrastructure, and the potential need for a retrofitting programme, including in the more dense urban neighbourhoods.

Indicators for the Provision of Permanent (full-brick) Housing in 171 Locations in Aceh

Location of surveyed housing

programme

Number of Samples

Construction Quality

Satisfaction with house and

process

Accountability

(Due process achieved)

Banda Aceh 47 locations 6.5 ± 0.6 4.8 ± 2.5 5.5 ± 3.2

Outside Banda Aceh

114 locations 6.7 ± 0.6 6.5 ± 2.0 6.6 ± 2.6

Benchmarks

(“± …” indicates 1 standard deviation)

Building code = 7.5

Unsafe < 6.25

Overall satisfaction requires score > 5

Flawlessly accountable > 8

due process not achieved < 5

Source: UN Habitat. Full results available from http://www.unhabitat-indonesia.org

“We insist you give us houses which will last and we can remember you by rather than giving us a house quickly which will not last over one year. We do not want to go through this again.” A female beneficiary for the ADB housing programme in Meulaboh.

meeting VitAl needs


The ChallengesGetting people out of barracks into quality new houses by December 2006 is proving to be more difficult than originally perceived. The validation and verification of beneficiaries to filter out the fraudulent and non-legitimate claims is an extremely time consuming exercise and has caused unwanted delays in the overall reconstruction. Other key issues directly affecting the programme include:

Land tenure and ownership: the reconstitution of land tenure and titles has been slower than expected and further complicates the classification of the beneficiaries. Land disputes amongst surviving households on one hand and the paucity of land titles traditionally in most areas of Aceh further exacerbate the situation.

Damaged land: Due to permanent flooding on some former housing sites and because of other topographical changes, almost 12,0002 families will require relocation to new areas. this requires land acquisition as well as every beneficiary’s consent to be moved.

2 Source: Rebuilding Lives in Aceh and Nias, Indonesia – Testing the Community Participation Approach in Housing Reconstruction and Rehabilitation by F. Steinberg (ADB)

Construction materials and costs: price hikes and at times an apparent shortage of building materials and lack of quality supplies has added a further burden on the initial housing targets committed by the international agencies and NGOs. serious efforts have been also made by the BRR and major agencies to ensure all timber used is procured from legal and sustainable sources. many houses have already shown signs of severe degradation due to untreated and weak quality timber used.

Provision of adequate infrastructure: many donors and NGOs have focused on the provision of housing with limited investment in associated infrastructure. this is in part understandable, given the mandates and profiles of NGOs and that villagers have indicated that their primary need is housing. the community-based approach to housing development does not lend itself easily to the provision of a coordinated network of primary and secondary services managed by local government and utilities. NGOs were encouraged to and did invest in basic community level infrastructure, however in 2005 much housing construction started without the provision of basic services (water supply, drainage, sanitation, power and lighting, roads, and solid waste disposal). BRR, local government and donors must ensure that systematic and coordinated plans are brought into alignment, linking settlements with infrastructure networks at primary, secondary and tertiary levels, including water and sanitation, drainage, and roads. Infrastructure plans must be developed and if necessary retrofitted for housing or settlements already constructed.

the overall challenge still remains that of building houses with high quality and anti-seismic standards (according to Government of Indonesia scale of 6 for Aceh and 5 for Nias). Quality and robustness of construction is a concern in both community and contractor based construction. several actors have struggled to maintain high monitoring and evaluation standards which has resulted in some non-durable houses, including cases where recently-built houses have become uninhabitable prior to the beneficiary occupying the premises. The ability to build a quality house as part of a properly serviced settlement is the primary goal in the coming months and years.

Two-Year Resultsduring 2005 in particular and to a lesser extent in 2006, there was a decline in commitments to meet the total housing needs, due to revisions in programme plans based on improved budgeting and understanding of

BRR Housing and Settlement Guidelines

Guideline reference Highlight

Rehabilitation (No.18)

Heavily damaged homes receive once-off 50% cash award of a new type-36 house and medium damaged ones receive 25% of the same.

Reconstruction (No.19)

A new house with price range of IdR 60 million up to IdR 78 million depending on the area.

Resettlement (No.20)

depending on the victim’s status prior to the tsunami, BRR will assist with land acquisition and resettlement.

Renters and squatters (No. 21)

A one time cash payment equal to 40% of the value of a new type-36 house.


operational constraints. NGOs and other implementing agencies are not making additional commitments to undertake further housing projects due to lack of funds and downsizing of their operations. As at November 2006, a total of 50,000 permanent houses had been completed, with around 57,000 due by the end of 2006. Out of a total of more than 120,000 required it means the reconstruction effort is reaching the half way mark for delivery needed since the december 2004 disaster. the permanent houses delivery is supplemented by 15,000 transitional houses that provide adequate housing for a 3-4 year period but more than 60,000 permanent new houses still remain to be completed.

the trend of declining commitments and the progress of the housing construction to date highlights some issues which need to be addressed immediately to prevent a further slowdown of the reconstruction programme.

Only 80% of the total requirements have been committed by the NGOs and the international agencies which mean a shortfall of 20%, possibly more, remains.

the likelihood of commitments not being realised, or scaled down, has not always been communicated to or absorbed by BRR in a timely manner, which has put a further strain on the reconstruction as it has affected future planning and programming.

the issue of rehabilitation of damaged homes seems to be overlooked as providing cash compensation as per BRR guidelines is not a preferred model by implementing partners, who find it easier to build new properties.

providing for community and inter-settlement infrastructure as an integral subset of the housing commitments.

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LAND AND SPATIAL PLANNINGthe dramatic destruction of over 800 km of the Acehnese coastline greatly affected the primary urban centres of Banda Aceh, calang, and meulaboh. the tsunami wave not only claimed people’s lives but with it destroyed precious vegetation, fertile soil, habitat, sensitive estuarine areas, and groundwater. Almost two years after the tsunami, proper spatial plans for Aceh and Nias are still being prepared with the aim of re-establishing basic infrastructure services and support to the communities and stimulating sustainable livelihood programmes.

to rebuild a better and safer Aceh and Nias, spatial planning at the sub-district and village levels is crucial to building back better. Although administratively district-planning is part of the provincial government’s planning process, the BRR immediately recognized that spatial planning at the sub-district and village level would be the most efficient way of identifying needs and project requirements. Approximately 90 sub-districts in Aceh and another 22 in Nias are badly affected; BRR set the priority of developing spatial and project plans across 60 sub-districts in the coastal area of Aceh and the island of Nias defined as having the most urgent needs3. similarly, 712 villages4 have been identified as priority areas for planning purposes because they comprise both heavily and medium damaged areas.

Land availability and tenure is central to economic and social revival. Land issues were a challenge to the government during the conflict years and were further complicated in Aceh and Nias after the disaster. From a total of 300,000 land parcels damaged5, only 60,000 were registered which has further complicated the restoration of land titles and rights and the allocation of new plots for those that lost them. While some damaged land has been rehabilitated in the last two years, some will never be productive again which will require communities to relocate elsewhere and restart their lives. the mdF programme has channeled Usd 28.5 million to fund BpN6 (National Land Agency) to assist in the registering and titling of land parcels known as RALAs (Restoration of Aceh Land Administration system).

3 Source: Asian Development Bank Package 6 calculations4 Source: BRR Spatial Planning Division5 Source: BRR Estimates6 Badan Pertanahan Nasional

meeting VitAl needs


Spatial Planning Progressthe progress of spatial planning of sub-districts and villages has been slow in the last two years but momentum is finally picking up. Approximately 20 sub-districts have been covered to date and village planning activities are underway in more than 402 areas to date. some of the major partners of BRR in the planning exercise include AdB, mdF, GtZ, AIpRd-Logica, UN Habitat and pt Wastuwidyawan. the planning outputs at sub-district level have helped identify budgetary requirements across the major sectors of infrastructure and livelihood. This is greatly assisting the BRR and other stakeholders to identify priority project implementation areas. The village plans which have been produced for almost 300 villages to date7 provide much needed information regarding the location of future house plots and detailed engineering designs to restore infrastructure.

Land titling and acquisition are still proving to be challenging still. Major road projects have been slow

� Source: BRR Spatial Planning Division

to start in the last two years due to time needed for land negotiation and acquisition with communities. the housing sector continues to be plagued with fraudulent land claims by organised groups, at times at the expense of vulnerable groups such as widows and orphans. In the livelihoods sector progress has been significant where more than 50,000 hectares of agricultural land has been restored from a total of 74,000 hectares damaged after the disaster. most international agencies have paid particular attention to ascertaining land tenure prior to housing reconstruction, although a few NGOs overlooked this due to the urgency of reconstruction needs. It is now clear with passing time that beneficiaries will need to be offered security with land titles prior to the allocation of a house. The RALAS project has been slower than expected, with BpN suffering from lack of capacity to deal with the surge in workload and with only 17,390 titles issued. Greater intervention is required by the provincial government and the BRR to accelerate the adjudication process.

Joint Land Titling

BRR and the national Lands Agency (BpN) in 2006 initiated a precedent-setting strategy to ensure women and men equal rights in land ownership by issuing a policy on “Joint-land titling”, with respect to ownership of the land parcels that will be purchased and distributed to the community by BRR. this policy aims to introduce joint-titling as an important facility for dealing with land ownership issues in post-disaster situations, and BRR will work closely with the BPN and Local Government to ensure that beneficiaries of its land parcels are eligible for joint titling.

Land ownership provides direct economic benefits as it is a source of income either from rental or sale; and as collateral for credit that can be used for investment and enterprise purposes. Women may not fully participate in these benefits, however, if they do not share formal rights over the land; only independent or joint-titling can ensure that women, men and children have equal access and control over land-based earnings.

While joint titling is not prohibited by Indonesian law, or syariah and adat law, it is not commonly used in Indonesia and consequently there are no administrative mechanisms in place for its implementation. In this regard specific interventions are required to support full implementation and understanding of these rights.

BRR has been working in cooperation with BpN to ensure that the land it purchases and donates to the communities left homeless and without land can be registered with BPN using a joint certificate where both spouses officially can be signatories on the land certificate. BPN, BRR and agencies involved in land acquisition and relocation have been reviewing the administrative requirements to ensure that their staff can provide the necessary support for those requiring joint certificates. The initial phase of implementation of “joint land titling” policy included the development of outreach strategy, information package, training of land registration officers, identification of beneficiaries and community awareness raising with specific target audience. This first target group includes those whose houses are already being built on BRR purchased land.

“I can think of nothing that will generate more income over the long run for average families in this region than actually having title to the land they own. Then, they will be able to borrow money and build a much more diversified, much more modern economy.”

Bill clinton, UN special envoy for tsunami Recovery, may 23, 2005, Banda Aceh



more than 2,000 school buildings damaged

Approximately 2,500 teachers died

more than eight hospitals damaged or destroyed

114 health centres and sub-centres damaged or destroyed

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623 permanent schools in Aceh and 124 in Nias built/repaired, supplemented by 379 temporary schools

more than 5,100 teachers trained in Aceh and 285 teachers trained in Nias

305 health facilities in total built/rehabilitated in Aceh and 19 in Nias – including satellite health posts, health centres and sub-centres damaged in the disasters and 3 hospitals in Aceh and 1 in Nias

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INSTITUTIONAL DEVELOPMENT the tsunami disaster took the lives of well over 5,000 local government staff. the combination of the disaster and the lengthy conflict meant the remaining civil service in general was far below capacity needed to deal with reconstruction activities. the creation of the BRR was in part a response to this, and the primary goal of the Institutional development department of the BRR is to re-establish an institutional capacity for the administration and sustainable development of Aceh and Nias.

Institutional development is intended to enhance the capacity of a broad range of government apparatus including district and provincial government agencies and the police. this is done through the provision of physical buildings, equipment, support from an independent consulting firm to assist in the transfer of technical and management skills and support for general institutional development and the provision of training and educational programmes.

despite the extensive damage caused by the tsunami and earthquakes, the redevelopment of a local government infrastructure in Aceh and Nias has progressed significantly. The major gaps within the physical structures have been filled and it is anticipated that in 2007 more attention will be given to improving these structures and their facilities.

Significant progress has also been made in filling civil servant positions. support has been provided by BRR to assist in the recruitment of civil servants. this has been achieved through developing procedures for civil servant registration and where necessary providing workshops and training courses to ensure competency standards are met.

A range of programmes have been underway throughout 2006 to train local government employees, including the eU/GtZ Aceh Local Governance Action programme, UsAId Local Government support programme and other training through YIpd, and training for sub-district and village heads supported by JIcA, AusAid, GtZ and the Government of France. the training ranges from technical, such as GIs, action planning, budgeting and core competencies; through to leadership and governance training. to date civil servants have received 4,158 person days of training, from provincial to sub-district level, plus 200 village heads have received training. the provincial government is reviewing its HR requirements, with the support of BRR, with a view to longer term training and staff development

Joint Planning and Coordination at Provincial Level through the support of the Governor of Aceh and through the combined efforts of BRR and Bappeda, a Joint planning team has been established in the fourth quarter of 2006. the formation of this unit under “one roof” is to enhance cooperation and assist in the designation of roles and responsibilities to encourage cooperation and a coordinated approach in the development of institutional development strategies and programmes.

more recently, implementation of the regionalisation strategy has involved the establishment of joint secretariats in several districts as a tool for both improved delivery of reconstruction and to enhance institutional capacity of local government. In addition to supporting communication flows, the joint secretariats are a vehicle for a number of programmes to be jointly funded by BRR and local government.

One of these programmes, referred to as the “KpK tour”, involved a series of workshops and education programmes across 23 districts in Aceh and Nias. the programme was led by the corruption eradication commission (KpK) and accompanied by the Indonesian procurement Watch (IpW) authority, pemda and BRR. the programme was funded by both pemda and BRR and ran for a period of three months, between August and November 2006.

ProViding sociAl serVices


this type of programme, apart from delivering important training and the transfer of knowledge to local government, has also provided the opportunity for different government agencies to work together in a unique partnership.

ChallengesWorking in partnership with local government to define potential capacity development needs and priorities, and engaging with local people to develop a genuine understanding of their needs and aspirations, is extremely challenging and requires significant efforts, and patience to communicate openly and build trust. Aceh and Nias have experienced many years of isolation. The prolonged armed conflict in Aceh has resulted in at least one generation having very little exposure to the opportunities gained from broader contact with the outside world. the extensive activity and resources in the reconstruction programme and the peace agreement has created a chance to address that isolation and provide the people with better and stronger government, that is more effective and accountable to its constituents.

CHILD PROTECTIONIn “building back better”, the recovery programme seeks to create a safer and better environment in which children can grow and develop. the earthquakes and the tsunami at the end of 2004 had a devastating impact on children and their families. more than 3,000 children were separated from their primary caregivers and an unknown number of children were left with single

parents. Immediate challenges included dealing with the trauma of tsunami victims and the increased vulnerability of thousands of separated children and children in single parent households, who could be vulnerable to abuse, neglect and exploitation.

Tracing and Reunification Save the Children, in conjunction with the Provincial department of social Welfare, led an inter agency group on the formation of a common database and have so far registered nearly 3,000 children. more than 1,300 children have been reunified with parents or relatives. The database has now been handed over to the department of social Welfare with secondments of staff from save the children.

In order to ensure proper follow-up of the reunified children, a targeted cash assistance scheme was implemented to support a core of fostering families, including 1,300 caregivers and 1,700 separated and unaccompanied children. A livelihood support project is now being developed in collaboration with the ‘child Fund Aceh’ and this will benefit up to 1,000 children along with their respective caregivers.

Children’s CentresMore than 19,000 children benefit regularly from services provided at 21 children’s centres that provide registration, tracing and reunification of separated children, psycho-social support activities for adolescents and younger children, legal protection from abuse and exploitation, and child participation activities including children’s committees. 526 child centre staff, 648 teachers, 135 school counsellors, 100 kindergarten teachers, and 325 school principals have been trained in basic trauma counselling skills.

safe play Areas have been established across the province by a number of international agencies and provide important places for children in both villages and temporary living centres to play, study and interact with their peers.

the establishment of a child protection secretariat at the provincial level and the signing of a cooperation framework with the Provincial Office for Social Welfare (Dinas Sosial) have been two critical measures to ensure institutional ownership and long term sustainability of this area of work. even though the emergency phase is over, child centres remain indispensable in providing services such as psychosocial support, legal help, and the follow-up to family reunifications.


the social Welfare departments at provincial, district and sub-district level are being supported by UNIceF and save the children in establishing a protective policy and legal environment for children, including integrating children’s centres with broader community services.

Children’s HomesA new report, produced jointly by Save the Children and the Indonesian department of social Welfare, shows that one of the longer lasting impacts of the december 2004 disaster is likely to be the institutionalization of thousands of children. the research which covered all of the Panti Asuhan Sosial (or children’s Homes) in the province of Aceh identified over 2,500 children who entered the Homes as a direct result of the disaster. At the same time, the research showed that contrary to public and media statements about ‘tens of thousands’ of children who had been orphaned as a result of the tsunami, only 10% of the children who entered the institutions as a result of that disaster had lost both parents while over 85% had one or even both parents alive.

Justice for Children UNIceF has trained 195 police women and deployed them in children’s centres to monitor the situation of children and adolescents and to prevent abuse and exploitation. Police officers, judges, prosecutors and probation officers have been trained to take a more child-friendly approach in juvenile justice and 75 children’s centre staff were also trained in legal protection. the emphasis has been on more family and community-based approaches to justice.

child-friendly desks’ which consist of a waiting room, doctor’s clinic for victims of violence, interview room and an administrative office are being set up in 12 Acehnese police stations to handle cases of violence against children and also cases of child abuse, exploitation and trafficking, either with the child being the victim or the perpetrator. The police officers assigned to the children desks have been trained by UNIceF. A special court room for children in Banda Aceh district court has also been established where juvenile trials are already taking place.

EDUCATIONthe role of education is critical to the transition from emergency to recovery. education is a fundamental right of all children in all situations. through education, children develop and acquire the skills, knowledge and competencies to better cope with the prevailing difficult circumstances and to contribute to the recovery and the development of their families and communities.

the general perception amongst communities, government and partners about the importance of educationcreated a favourable environment for the education sector during the recovery process. communities were cooperative, and they often prioritised children’s education over other needs. As a result, a vast majority of children had returned to school in Aceh and Nias in 2005.

School ReconstructionAlmost 750 schools have been reconstructed. Almost 400 temporary schools built by different actors during the first year continued to benefit children during 2006 by providing adequate space for teaching-learning while waiting for the permanent schools to be completed.

Improving Quality of Educationthe provincial department of education prioritised an in-service teacher training programme to improve the quality of teaching and learning for all children in all schools. the mechanism for in-service teacher training is the school cluster system for primary schools in 21 districts of Aceh and 2 districts of Nias. A successful Indonesian model of the creating Learning communities for children (cLcc) programme which involves teachers, principals, supervisors, school committees and local communities in the quality improvement of education, was selected as a strategy for the in-service teacher training programme. Introductory orientation and advocacy workshops targeted key education managers of Aceh and Nias.

during 2006, coordination meetings and discussion were held among donors/NGOs, department of education, and a coordinating committee included syiah Kuala University. the committee requested all donors and actors to implement activities within the cLcc framework. As a result, at least 12 donor and NGO agencies (UNIceF, save the children, cARdI, AIpRd, child Fund, among others) have committed to support the implementation of the cLcc programme for improving the quality of teaching and learning in primary schools.



Five sessions of training of trainers (tOt) for cLcc were conducted with 290 trainers, followed by the 102 sessions of trainings for teachers at school cluster level, reaching 3,366 teachers in 10 districts of Aceh and 2 districts in Nias.

Early Childhood Developmentthe Aceh provincial education department with the support of donors are working to encourage remote communities to create affordable community-based early childhood development (ecd) centres and early learning activities for young children of 0-6 years old, building upon “play groups” which existed prior to the tsunami/earthquake.

currently, stakeholders at provincial, district and community levels are advocating ecd in order to raise the awareness and skills of caregivers (mothers, fathers, and other caregivers) to improve practices on early learning in the communities. these initiatives, combined with the training of community teams, will increase the number of children, especially from disadvantaged communities, attending the ecd centres and will eventually improve the learning achievement of children.

Aceh Five-Year Education Strategic Plan (2007–2011)the future direction of education in Aceh has been defined during 2006 through the development of the Aceh Five-Year education strategic plan (2007 – 2011). the Governor of Aceh, in consultation with the director of BRR, requested the provincial education council to develop a strategic plan for the sustainable development of education in the province.

the steering committee and the secretariat were established to provide the leadership and technical guidance and to facilitate the planning process. The five-year strategic plan has eight sub-sectors:

early childhood education; basic education;senior secondary education;technical and vocational education;Islamic boarding schools (religious/traditional education);non-formal education;teacher training (pre-service and in-service training); andhigher education.

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disaster preparedness and response is considered important in the natural disasters prone province of Aceh, and is integrated as a cross-cutting issue for all levels of education. technical task forces for each sub-sector have been established under the joint leadership of local government and donors. community participation and consultations will continue in early 2007 to ensure the plan is locally relevant, practical and feasible. efforts are underway to have the Five-Year strategic plan approved by the Government of Indonesia during the first quarter of 2007.

ChallengesOne of the key challenges faced to date concerns ensuring adequate planning and coordination. A lack of attention to both these critical processes increases the risk of duplication and over-lapping in school reconstruction sites, with implementing agencies competing over sites to reconstruct permanent schools. there have even been reports of too many schools being reconstructed, meaning some lie empty or serve only a tiny population of children. A lack of effective coordination with local government has also constrained progress in reconstruction, as both implementing partners and local government become frustrated by the lack of information or communication.

Although BRR started to harmonise the minimum standards in school reconstruction in August 2005, there is concern that some schools have been completed or are under-construction with inconsistent enforcement of such standards, with implications for children’s safety in case of future emergencies. It is important to investigate where compliance with minimum standards may have been unwisely sacrificed in order to speed up reconstruction, taking remedial action where necessary.


HEALTH Health is always a priority in the aftermath of disaster and in emergency response. Immediate and short term needs that must be addressed include malnutrition, provision of latrines, clean water and sanitation systems and immunisation against disease. In this regard, health services provided in the emergency phase successfully prevented a potentially catastrophic public health disaster.

during 2006, efforts continued to support the provision of medical services through the physical reconstruction and rehabilitation of health facilities and infrastructure and providing preliminary training for health workers. A total of 323 health facilities have been repaired or reconstructed, including 3 hospitals. However, there is an ongoing need to ensure adequate medical supplies and skilled personnel are available to equip and staff these health facilities. capacity building needs good planning, understanding and sustainable long-term funding. In order to utilise existing resources optimally, efforts need to be increased to ensure that medical equipment is allocated to areas where the health infrastructure and skilled workforce are available to use it.

providing access to training and education for skilled health workers has helped to develop capacities and improve the overall provision of health services. BRR has provided scholarships for 221 health workers to attend advanced training, including 116 specialist surgeons, paediatricians, gynaecologists, internists and anaesthetists who will serve as permanent specialists in all general hospitals throughout the Aceh province.

Indonesia has a relatively good policy and regulatory framework for dealing with the poor, and ensuring health provision for the needy, however both doctors and communities are more used to a ‘cash culture’ and further awareness raising and training is needed on entitlements and the government’s safety net policies. more coherence is needed in the training to enable the most effective process of calling on and providing services.



Improving Nias Health Care

the march 2005 earthquake caused an exodus of skilled health sector personnel from Nias, paralysing the

already extremely under-resourced Nias health system. Nias health care has been set-back by damage to

facilities, the death of health workers, trauma of survivors, and an inadequate capacity to deal with emergency

situations. Health sector recovery is focusing on the following key areas :.

Revitalisation of Gunung Sitoli Hospital

Gunung sitoli Hospital was badly damaged by the earthquake. the hospital, which serves more than

700,000 people, is the main referral hospital in Nias. Recovery partners have been working together since

the disaster to provide the hospital with medicine, medical equipment, and other assistance. Additionally,

unregistered or out-of-date drugs donated during the emergency phase have been safely destroyed.

A Usd 6 million programme is underway involving rehabilitation and reconstruction of the building,

providing medical equipment, and sourcing and strengthening skilled health care personnel, with BRR,

WHO, meRcY malaysia and UNIceF working together.

Hierarchical Health Care Development

to address the limited access to health care in remote and underdeveloped areas of Nias, BRR is developing

a new approach. Initiated during a WHO sponsored BRR Health Workshop, hierarchical health care

development recognises four key factors for effectively planning and managing Nias health care.

Health system development

Health care delivery

Facility planning

Workforce development

Puskesmas for Urban, Sub-Urban and Rural Communities

BRR, together with the Asian Development Bank, is implementing a pilot project for the primary care

dimension of the hierarchical health system. In particular support is requested for the reconstitution of

6 Puskesmas ‘plus’ with limited inpatient facilities, serving urban, sub-urban and rural communities. the

programme aims to promote sustainability of the puskesmas and the overall health system, to begin in early

2007.

Strengthening Human Resources: Scholarship Programme

The chronically low number of medical doctors and specialists is a major problem for health services

in Nias. temporary medical support from national and international agencies during the emergency

phase will not resolve this weakness in the longer term. In 2006 the continuous scholarship for Health

Workforces in Nias and Nias selatan programme. In 2006, scholarships were provided for the education

of 16 General Practitioners, 14 specialists and 9 Masters of Health, in collaboration with Gadjah Mada

University, Yogyakarta.

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MANAGING DISASTER RISk AND THE ENVIRONMENT


5,765,000 cubic metres tsunami waste created

• more than 1 million cubic metres waste cleared and processed, including reclaimed rubble for 52km road and almost 17,400 m3 reusable/recyclable timber

Over 33km coastal protection built in Aceh and over 24km saltwater dykes

tsunami early Warning system being tested

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DISASTER RISk REDUCTIONdisaster risk reduction is a key component of the recovery and reconstruction process to ensure that communities are as prepared as possible to mitigate againts future hazards. decisions regarding the way funds are spent can directly affect how the projects will increase or decrease vulnerability. the international Hyogo framework of 2005 sets out responsibilities of key actors in integrating disaster risk reduction into sustainable development policies and planning, and a national disaster Risk Reduction Workshop held early 2006 addressed a range of initiatives required, including guidelines, policies and projects.

particular concerns in the reconstruction programme include building quality and locations, including close to the coastline. communities (with implementing partners) have in some cases re-built close to the coast on the basis that they did not have land elsewhere and considered they had little alternative. However, and appropriate disaster risk management process included in the community-based mapping provides an opportunity for improving escape routes and improved awareness.

BRR and UNdp are cooperating to issue a comprehensive disaster Risk Reduction framework, linking also with provincial, local and national government entities. Issuing such as policy and framework is a priority at the end of 2006. UNdp are working with Bakosurtanal in preparing disaster risk maps and indices in relation to environmental risk management plans.

substantial support in this sector has been provided to BRR since march 2006 by the Government of the Netherlands, through a 30 month Usd 9 million consultancy contract for sea defence consultants. The contract covers flood control, urban drainage, sea defence and tsunami early Warning systems (teWs), including community awareness programmes.

As part of this programme, escape routes and safe refuge areas in the event of future disasters are being designed and developed and BRR and respective consulting teams will be commencing a pilot project in sub-district Lhoong to identify suitable locations which will fulfil these requirements. the BRR is the primary funding source for capital works, and multi-year contracts have been used to allow smoother implementation throughout the year on year government budgeting cycles.

Sea Defencethe impact of the tsunami and earthquakes and the appropriate sea defence mechanisms required have been much debated in 2006. At the beginning of the reconstruction in 2005 there were no overall planning documents or feasibility studies offering a clear way ahead. Nevertheless action had to be taken in order to enable other reconstruction such as housing and agriculture rehabilitation that were dependent on high tide protection. standard designs and experiences of working elsewhere were applied in order to start works quickly, modifying as best as possible for field conditions and community needs. However, this relied a lot on local knowledge in communities, but often technical expertise was limited and those with indigenous knowledge were simply not available, having been displaced by the disasters.

In the later half of 2005 and early 2006, BRR constructed sea defence walls and water barriers throughout Aceh and Nias. It was understood from the start that sea walls would not protect from tsunami but rather protect from high tide and enable reconstruction, especially in more heavily populated areas. However by early 2006 contrary views and concerns were being expressed about whether the physical construction was the best solution considering environmental impact. these views have been taken on board and more emphasis is being given to mangroves and environmental solutions. However, the decisions are not simple. sea defence is expensive per capita, so investment has to be assessed in terms of where it has most impact. mangroves and ecological solutions may take years to give sufficient coastal protection to enable housing developments to

mAnAging disAster risk And the enVironment


be protected. decisions have to balance economic, political, engineering, and environmental factors.

proper emphasis must be given to the operation and maintenance of flood defence structures. Failure to properly maintain and operate defences can have catastrophic consequences, causing far worse flooding when defences breach than would have occurred if no defences had been built in the first place.

Maintenance of flood defences is an expensive and indefinite commitment. The ability of government and communities to fund such maintenance must be confirmed before construction starts. If construction quality is poor, or if maintenance is neglected even if in just one or two locations then an entire city can be flooded as happened in New Orleans in 2005.

2006 has seen debate on the best way forward. Lessons have been learned and procedures were followed at a more considered pace, but there is no single straightforward answer for coastal protection. more data and expertise has certainly assisted in 2006, but experts continue to have different views about how the coastline will settle. coastlines are still changing, the sea currents are being modelled, but debris still blocks some waterways while other areas are being washed away. A minimum of one year is required to observe the tidal patterns, but of course several years allow the change to be more fully understood.

Aside from the technical complexities associated with this sector, land issues are a constraint. the policy of BRR is to purchase only the land being used for coastal protection works – not to compensate for land now submerged or to purchase the remainder of a plot if not required. However, people continue to expect compensation for portions of land on their plots that is now submerged, and to demand that entire plots be purchased rather than only portions required for works.

Drainage and Flood ManagementIn the reconstruction programme there is not enough attention being paid to flood management. There are two main aspects to flood management – flood control and urban drainage. Urban drainage is largely dependent on flood control so the two are combined and tackled together with sea defence.

the debates on appropriate sea defence strategies extend into flood management, with some proposing that flooding problems are exacerbated or caused by the sea walls. pumping stations and similar solutions can be adopted. With the present capacity in local government

though it is unlikely that sophisticated systems would be maintained and capacity building in operations and maintenance would be required.

since the emergency phase there has been more concentration on buildings and above ground structure, with too little design and planning of sub-structure and civil engineering works. In housing coordination and community-based planning there is not enough guidance on spatial planning and drainage needs.

there is little awareness of sustainable drainage systems in Aceh. Swales, retention ponds, wetlands, infiltration trenches and rainwater harvesting all reduce flooding problems, and are considerably cheaper than conventional concrete drains. they are also easier for communities to maintain and more resilient, being less likely to be blocked by rubbish or damaged in earthquakes. An awareness campaign should be started in 2007 to introduce sustainable drainage systems.

Because drainage schemes rely on traditional hard engineering (using concrete channels almost exclusively) they are relatively expensive compared with house construction. the drainage scheme for zone 2 of Banda Aceh will cost Usd 4.5 million to cover 110,000 people, not including sea defence measures. the pattern is emerging that the neglect of the sub-structure becomes apparent only when people have moved into their houses and realised there are drainage problems. At that point expensive retrofitting is required to avoid public health problems.

BRR have recognised this is an issue and is calling on NGOs to report immediately where they have not


provided or cannot fund the necessary infrastructure base for housing, so BRR can apply remaining 2006 funds immediately wherever possible for remediation. With current neglect of the sector, continuing into 2007 there could be increasing gap between demand and budget.

Not including retrofitting needs, Banda Aceh and Meulaboh drainage designs need to be finished in order to implement urban drainage and flood control by 2009. Works for three zones in Banda Aceh remain unfunded. meulaboh needs funds for capital works, there is insufficient funding for flood control in the urban areas and the infrastructure required for main river flood protection is still unfunded. A target for BRR is to fund this by 2009. Lhokseumawe also needs design and implementation of a drainage and flood control scheme singkil is an areas experiencing particular problems since the land has settled more than 1 metre making the cost of intervention there very high.

Community practices exacerbate flooding problems throughout. From years before the tsunami it has been common for people to dump garbage into the drains and for households and government to neglect the maintenance of flood drains. Extensive awareness programmes are essential if investments in physical infrastructure are to provide effective flood management and avoid public health problems.

MANAGING ENVIRONMENTAL IMPACTenvironmental assessments and examinations need to be undertaken in all areas prior to any form of reconstruction. Although environmental problems did exist prior to December 2004, major environmental issues need to be addressed during the ongoing reconstruction process and should be given high priority in the work plans of stakeholders involved in reconstruction. examples of some major issues of concern include:

contaminated drinking water and inadequate sanitation systems in re-established housing areas, especially problematic in areas with high water tables.

the large volumes of timber required for housing construction and for firing bricks, and the associated impacts on forest resources in Aceh, North sumatera and Kalimantan from unsustainable or illegal logging; and impacts associated with extraction of sand and gravel for building and road construction.

About 1,000 hectares of agricultural land are covered by a thick sediment layer and other areas remain saline due to insufficient drainage so

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requiring improved land drainage. As the restoration of these areas can be very expensive, alternative land use practices should be considered such as animal husbandry. In addition, 27,500 hectares of aquaculture ponds were affected and should be restored to environmentally sustainable production where economically and technically feasible while at the same time repairing and maintaining the integrity of the coastal greenbelt.

the need to rehabilitate and protect coastal ecosystems that have been damaged by the tsunami and/or unsustainable resource practices.

Large quantities of tsunami and household waste still needs to be cleaned up, as it clogs up drainage systems and represents a major source of infections. At the same time waste collection and disposal facilities are very deficient, and hazardous waste management is almost non-existent. It is highly recommended to further improve waste collection and treatment, with special emphasis on hazardous waste, and to create safe waste disposal facilities.

capacity in environmental management, impact assessment and spatial planning needs to be enhanced. the environmental impact assessment system faces a bottleneck of projects requiring approval and requires further streamlining and technical support. monitoring of the environmental impacts of the reconstruction process and trends in environmental quality is limited.

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Coastal Environmentsthe earthquake and tsunami disasters caused serious damage to coastal environments, including coastal forests, corals and other wetlands. the restoration of the natural productivity and values of these coastal habitats through direct interventions or allowing natural processes of recovery, combined with improved management of coastal resources, will contribute substantially to the sustainable recovery and development of coastal fisheries in Aceh and Nias.

mangrove planting has made substantial progress during 2006, but substantial work still remains to be done. Investments in coastal ecosystem rehabilitation have been marred by poor planning and implementation. proper assessments, including appropriate site selection combined with support to better coastal resource management will be necessary for the sustainable recovery of coastal resources in Aceh and Nias. AdB is contributing to this initiative by supporting coastal planning through the etesp spatial planning and environmental management (spem) component, and building mangrove rehabilitation programmes into its investments in the rehabilitation of the fisheries sector.

Fisheries could be one of the backbones of Aceh’s economy, with its potential backward and forward linkages, but so far most fishermen use very traditional techniques and small boats, which prevents them from accessing richer fishing areas far offshore. In addition, the fisheries sector was badly affected by the tsunami, with over 80% of fishermen affected by the tsunami, which highlights the urgent need to assist this community.

Forestry areas in Aceh are estimated to extend up to 4.13 million hectares or 75 % of the total size of the territory, with tropical rain forests that contain of a great variety of wood and wildlife. there are currently about 20 companies that have been granted licenses to develop about 1.58 hectares of forest to be production forest. the reconstruction’s demand for wood1 amounts to 740,000 cubic metres RWe (round wood equivalent), while the supply available on the market is 100,000 cubic metres, thus there is an demand of about 640,000 cubic metres. this increasing demand for wood already resulted in some illegal exploitation of forests. the use of salvage woods and alternative construction materials could somewhat ease this situation.

1 FAO Assessment for Demand and Supply of Timber for Post Tsunami Reconstruction in Indonesia.

Strategic Environmental Framework

the strategic environmental Framework (seF) for a more environmentally sound Reconstruction of Aceh province is a set of policies, structures and operational guidelines ensuring that environment is properly considered in Aceh’s complete reconstruction programme and project cycle – from policy development to planning, implementation, monitoring, and compliance promotion. The objectives include supporting environmentally and socially sound investments; ensuring that environmental and social aspects, including cumulative impacts, are considered at an early stage in the reconstruction planning process; and preventing inadequate implementation of environmentally sound plans and projects. The SEF is designed to assist decision-making in the project cycle’s early stages and to provide a practical tool for mitigating project impacts. The framework proposes a series of interventions, that can be used independently or as a whole.


The Tsunami Recovery Waste Management Programme Progress

key Performance Indicators

Total TRWMP to September 2006

tsunami waste cleared (m3) 1,060,137

municipal waste collected / disposed (m3) 88,308

Sawah / tambak /land rehabilitated (ha) 670

tsunami / earthquake damaged buildings demolished (no.) 242

drains cleared (average km per day) 3,8

Roads swept (average km per day) 11,6

temporary workers (average no. per day) 1,451

male workers (%) 69%

Female workers (%) 32%

Internally displaced persons (Idps) amongst workers (%) 69.5%

Beneficiaries employed in livelihood projects (average no. per day) 219

Heavy equipment leased (average no. per day) 185

dump sites upgraded / rehabilitated (no.) 11

Waste cells (ha) 16,5

daily cover for waste area (ha) 39

Roads rehabilitated / reclaimed with rubble (km) 52.5

timber stockpiled for future re-use (m3) 17,442

Recovered wood processed into condition suitable for recycling (m3) 1,458

timber provided to NGOs for reconstruction efforts (m3) 109

Furniture units (e.g. table, cupboard, etc) completed (no.) 2,089

Solid Waste Managementthe tsunami Recovery Waste management programme (tRWmp) aims to build capacity in government, create temporary employment and longer-term livelihoods in waste management whilst benefiting the environment through collection, recovery, and recycling of waste materials. This project was started by UNDP early 2005, with Usd 15 million provided by the mdF in september 2005, executed in partnerships with BRR and local Government sanitation departments (Dinas Kebersihan). the funding is expected to be fully spent by end december 2006, but an extension is being proposed.

The project collects tsunami and other waste, plus has rehabilitated existing or has provided temporary/emergency dumpsites. Through waste recycling projects it has provided interim livelihood opportunities.

the tRWmp was also conceived to address the environmental impact of the tsunami and earthquake disasters; in particular the waste generated by the disaster and the need for appropriate handing and clean up of this waste and rubble. much of the waste recovered is recyclable for use in rehabilitation and reconstruction. Reuse of recycled timber, concrete and bricks has directly reduced the need to fell trees for virgin timber and quarry rock for use in concrete, drainage, roads and fill.

during the last year the tRWmp expanded to eight of the most impacted districts in Aceh & Nias. much of the tsunami waste in the most affected municipal areas has been cleared. Attention has increasingly become focussed on restoring and improving municipal waste disposal the emphasis here is on the provision of support that will enable sustainable systems to be developed and that will provide workable and sustainable waste collection and processing. Significant work is still required to achieve these aims both within the current 8 districts and in others not yet reached by the programme.

there is a longer-term need for sustainable properly sited sanitary landfill facilities in Aceh and Nias. Studies indicate a disposal facility can be provided for Kota Banda Aceh/ Aceh Besar that utilizes the clean development mechanism (cdm) to operate on a self funding basis.



Environmental Sensitivity Map

the environmental sensitivity of each ecounit, indicated by a combined Resource Value and sensitivity score(cRVss), was calculated as follows:

cRVss = BIV * sUV * tIswhere:

1. ecounit Biological Importance Value (BIV): a score, ranging from 1 to 10, assigned to each ecounit, with a higher score indicating a higher biological value;

2. ecounit Special Use Value (SUV) modifier: decreases or increases the BIV score, from 20% to 40%, if an ecounit is under protected area or various forest management land use designations, or has been identified as special biodiversity habitat; and,

3. ecounit tsunami Impact score (tIs): decreases the BIV by up to 40% depending on the extent of tsunami damage.

Ecounit CRVSS scores are classified as follows:A. score ≥ 10: very high sensitivity, implying either

no infrastructure activities or an AmdAL or eIA required.

B. score 7-9: high sensitivity, implying Iee or UKL/UpL required for infrastructure activities.

c. score 5-6: medium sensitivity, implying environmental impacts of infrastructure activities to be considered carefully but no environmental assessment required.

d. score 3-4: low sensitivity, implying environmental impacts of infrastructure activities to be considered.

E. score ≤ 2: very low sensitivity, implying no environmental issues with infrastructure activities.

disclaimer : the Nanggroe Aceh darussalam environmental sensitivity map is preliminary in nature and based on limited data, and should be used as an information tool only. the AdB disclaims any and all liability for damages incurred directly or indirectly as a result of errors, omissions or discrepancies



3,000 km of roads impassable

14 of 19 seaports badly damaged

8 of 10 airports damaged

120 arterial bridges destroyed, 1,500 minor bridges

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1,200 km of all type of roads in Aceh and 300 km in Nias have been built/repaired.

121 bridges in Aceh and 37 in Nias have been repaired

All ports operational; 11 ferry terminals and harbours in Aceh and 3 in Nias are built/under development

All airports operational; 5 airports and 1airstrip in Aceh and 2 in Nias built/under development.

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ENABLING INFRASTRUCTURELack of significant infrastructure two years after the disaster is hampering the reconstruction process. Primary infrastructure including major roads and proper seaports are still inadequate and linkage with secondary networks to reach the more remote areas is imperative Years of conflict left the infrastructure neglected and the tsunami exacerbated further the problem. Restoration of national and district roads, access to potable water and electricity networks will help alleviate poverty issues and promote economic development

TRANSPORTtransportation networks continue to be a top priority for the reconstruction programme now and for the coming years. Over 1,5001 kms of roads have been repaired in both Aceh and Nias but in some areas upgrading is still required. Gaps in maritime transportation have been filled by the WFP Shipping Service for 2006, but a longer term solution is required.

Roads and Bridgesthe poor condition of roads and bridges is causing serious delays in the reconstruction process and further isolating the existing remote areas. to date, local governments in Aceh and Nias still have insufficient technical and financial capacities to restore the road system. In 2005 the maintenance of emergency roads exceeded the capacity of local and provincial government and the implementation of programmes through BRR had been lagging, resulting in implementing agencies, often lacking technical expertise themselves, attempting to fulfil the essential road works required.

this year, 2006, has seen greater coordination and capacity building between both the BRR and local governments. However, more extensive rebuilding and investment is needed throughout, including non-tsunami affected areas, to achieve an improved network. many bridges are still unable to accommodate more than 10 tonnes loads.

the UsAId-funded new road from Banda Aceh to meulaboh has started, following design and land acquisition. the rehabilitation of the 122km calang-meulaboh section is funded by the Government of Japan and will be complete at the end of 2006, while the mdF has funded the rehabilitation underway on the Banda Aceh-calang section. the AdB is funding rehabilitation of the 490km east coast road from Banda Aceh to the North sumatra border and work is expected to start early 2007.

PortsPorts not only play a major role in the overall logistical framework but also serve as an essential element of economic revitalisation. most of the ports on the north and west coast of Aceh, including simeulue, were either badly damaged or destroyed by the earthquakes and the tsunami. In the short term, functioning landing facilities are also very important to facilitate the transport of

1 Source: BRR and UNORC

Infrastructure Reconstruction Enabling Programme

The Infrastructure Reconstruction Enabling Project (IRep) provides technical assistance at two levels. An Infrastructure programme management team, under the supervision of the BRR, will assist in strategic planning and coordination of all infrastructure activities. concurrently, district-based technical teams develop detailed infrastructure designs and provide implementation support. the program is a Usd 42 million technical assistance funded by the multi-donor trust Fund.

Infrastructure Reconstruction Financing Facility

the Infrastructure Reconstruction Financing Facility (IRFF), established in september 2006, provides funds for key infrastructure reconstruction projects identified through the Infrastructure Reconstruction enabling programme. It combines Usd 100 million of multi donor Fund resources and Usd 200 million Government of Indonesia funds managed by BRR for infrastructure projects throughout Aceh and Nias.

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great amounts of reconstruction materials. An estimated 30 million tonnes of material is to be brought in over the next 3 to 4 years.

Rehabilitation of seaports and ferry terminals has made good progress in the two year period. Of those damaged or destroyed, all are now operational, but some with temporary facilities. For temporary capacity foreshore ramps for the use of landing craft were constructed at calang, meulaboh, malayahati and sinabang. A temporary wharf is also being constructed on pulau Aceh (island) In Aceh Besar. Ulee Lheu (Banda Aceh) and Balohan (pulau Weh island) ferry terminals were refurbished. New construction has been completed in malahayati port in Aceh Besar with 10,000dWt (dead weight tonnage), funded by a grant from the Government of the Netherlands and at Meulaboh jetty, funded by the Government of singapore through the singapore Red cross.

the current programme includes improvements underway at sosog port, and completed designs for a new port at Lamno. A new ferry terminal is planned for meulaboh, including a land reclamation scheme, with design due to be complete by end of december 2006. calang, sinabang, Gunung sitoli ports are critical for bringing in construction and relief materials and temporary rehabilitation work has been completed with permanent work expected to commence early 2007

Airports and Airstripsthe Government of Indonesia through BRR is the major financer of airport and airstrip reconstruction.the new calang airstrip was funded by the mission Aviation Fellowship (mAF) and was completed in 2005. All existing airports and airstrips in Aceh and Nias were made operational since the disasters, although further improvements are ongoing. . three new airstrips are


being designed for sibigo (simeulue), teluk dalam (Nias) and Blang pidie (Aceh), with construction due in 2007. Improvement works are also planned at sultan Iskandar Muda in Banda Aceh in 2007 which served as the first port of call for all emergency and relief flights right after the tsunami.

WATER SUPPLYIn 2006, a number of significant water supply projects were initiated, repairing and rehabilitation water treatment works and pipelines damaged by the tsunami. The first priority has been to provide appropriate water supply to reduce the need for water tankers and similar emergency water interventions. the second priority is to support the reconstruction of housing, and third priority is to provide water to key strategic areas such as ports and industrial areas, to support economic development. A large number of agencies support the water supply sector; the IFRc, IcRc and Red cross/Red crescent societies, UNIceF, Islamic Relief, cARe, World Vision, Oxfam, UsAId, cRs, tHW, sAB-sAs among others.

the main Banda Aceh water sources at Gle tarom, mata Ie, Jantho and meulaboh have been rehabilitated by pdAm, with support from UNIceF, tHW and other partners. the Government of Kuwait (through Kuwait Red crescent) constructed a seawater desalination plant at Ulee Lheu, Banda Aceh. the Government of switzerland (through sdc) are rehabilitating Banda Aceh’s water treatment plant in Lambaro, with capacity 485litres/sec, while the Government of Japan (through JIcs) are rehabilitating the water supply pipelines in Banda Aceh and Gunung sitoli, replacing destroyed pipe networks and rehabilitating and expanding the capacity of pipes elsewhere. the programme has suffered some delays due to land acquisition. UNIceF and partners have constructed a network of water supply pipelines around Aceh Besar, serving communities on the west coast as far south as Lampu’uk and as far east as darussalam.In water supply projects, as with other construction works in the overall reconstruction programme, concerns have been raised about the quality of the reconstruction work, as inexperienced contractors have worked with minimal supervision from consultants.

Water supply schemes have been proposed and implemented with insufficient consideration as to the availability of suitable water resources long term. It is fortunate that Aceh is relatively well endowed with water resources, nevertheless problems may arise due to the competing needs of irrigation, industry, drinking

water supply, and the environment. the problems are most acute along the North and east coast of Aceh, which has the high population densities, more industry and relatively small water catchments.

It is recognised that most of Aceh’s and Nias’s local water supply companies (pdAms) lack both technical capacity and financial resources. They have received considerable support from esp/UsAId and GtZ/sLGsR’s capacity building programmes. the World Bank has commissioned studies into the institutional reform of the water companies. the issue remains problematic due to political difficulties involved in raising water tariffs to a level where they actually sustain the water supply infrastructure and pay staff salaries.

SANITATIONsanitation is challenging because of high ground water levels, low level sites, earthquakes and poor awareness of good practice. sanitation standards in pre-tsunami Aceh and Nias were poor in general. A working group was formed in 2006 comprising NGOs in Housing and Watsan services. they have developed and published a set of sanitation guidelines for Aceh-Nias. these guidelines, published in November 2006, are a practical document setting out minimum standards for sanitation in context.

It is recognised that during the emergency phase, many NGOs provided rudimentary sanitation (or even no sanitation at all ) for the houses they constructed. While this was an understandable initial response to the disaster, the challenge now is to provide sustainable sanitation for the permanent housing programmes, and safeguard indefinitely the health of families.

the sewage treatment plant in Banda Aceh was rehabilitated with the support of the Government of Japan (through JIcA). during 2007 many organisations will be upgrading cess pits and sub-standard septic tanks and providing secondary treatment to meet the new guidelines. this will prevent wastewater entering drains, protect water sources and the environment and substantially reduce water borne diseases (the primary cause of infant mortality).

the working group recognises that septic tanks provision must be accompanied by an effective public health campaign if people are to maintain their tanks and de-sludge them when they fill up in 2 – 5 years’ time.

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IRRIGATIONThe major programme in irrigation is ADB’s USD 30 million etesp programme that includes rehabilitation of about 72,000 hectares of irrigation systems with about 64,100 hectares in Aceh and 7,900 hectares in Nias. the work programme includes the rehabilitation of 21 irrigation systems that were severely impacted by the tsunami over an area of about 10,000 hectares.

the process includes participatory planning, design and construction with farmers and Water User Associations; there have been 230 meetings so far. Funding for construction is through the Government, and implementation is through the BRR’s Satker and the district based ppKs, with contracting of work either through community based sp3 contracts or through Local competitive Bidding (LcB)/ Kerja Sama Operasi (KsO) with implementation by contractors with Water User Associations (WUA) and farmer participation.

to date, 21 LcB/KsO contracts in Aceh and 5 LcB/KsO contracts in Nias have been awarded and construction is underway, total value Usd 4 million. the Satker and ppK expect to award 75 contracts by the end of december 2006 (approx Usd 0.8 million). 57 LcB contracts, estimated at Usd 15 million are due to be tendered in 2007, along with 120 community-based sp3 contracts. district Working Groups have been formed to coordinate work at the district level and consist of district representatives from Bappeda, Agriculture, dWRs, and Bappedalda. they have operational budgets and have started coordination at district level.

POWERAceh enjoyed an electrification rate of over 74 % prior to the tsunami, well above the national average of 57 %. But owing to the absence of economies of scale in Aceh, the cost of supplying power to households in Aceh and Nias is higher. there were excessive damages to generation capacity as well as transmission and distribution networks of the tsunami affected areas. the total value of the damage was calculated to over Usd 50 million. power cuts were common and have become more frequent after the tsunami disaster. There is insufficient power generation and transmission capacity in Aceh to cover the increasing demand. Its power system was built as an integral part of the North sumatra interconnected grid while most power in Aceh is supplied either from North sumatra or by small diesel-powered generators across Aceh. the system is fragmented and lacks

economies of scale. The major power source is centered in North sumatera, while in Aceh, a number of potential energy resources exist but are not yet developed. these include geothermal sources (589 mWe), hydro sources (1,482mWe), and coal (571 million tonnes).

Major rebuilding efforts in the power sector are being undertaken by BRR in Aceh and Nias through Government of Indonesia funding of IdR 446 billion (USD 49 million) through three fiscal years (2005-2007). AdB is contributing Usd 9.5 million for equipment which aims to improve the electricity distribution system. in total twelve new diesel-powered generators have been purchase and installed across Aceh and Nias to ensure sufficient electricity service, generating an additional 10.3 mWe of power capacity. Although the major cities of Banda Aceh and Meulaboh are beginning to enjoy uninterrupted power supply, restoration of power supply to the more rural areas is not expected to be in full swing until 2007.



Usd1.2 billion damage to productive sector

Projected economic decline of 5% in Aceh; 20% in Nias

100,000 small business persons lost their livelihoods

4,717 coastal fishing boats lost

More than 20,000 ha fish ponds destroyed or out of action

60,000 farmers displaced

Almost 74,000 ha agricultural land damaged

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69 % of the male labour force and 36 % of the female labour force actively engaged in urban areas.

68 % of the male labour force and 45 % of the female labour force are working in rural areas of both Aceh and Nias.

4,420 fishing vessels have been replaced

6,800 ha of fishponds rehabilitated

more than 50,000 ha of agricultural land have been rehabilitated

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Aceh’s Economy 2005

22% Agriculture

12% Trade,Hotels & Restaurants

7% Transportation& Communication

23% Mining

20% Manufacturing

13% Services

3% Building& Construction

ACEH’s ECONOMYAceh’s economy relies heavily on oil and gas production, which accounted for 23% of Gdp in 2005. manufacturing, largely dependent on inputs from cheap gas (e.g. the fertilizer industry) accounts for a further 20% of Gdp.

Aceh’s economy on average has seen lower growth rates than the rest of Indonesia for the last 20 years, partly caused by the conflict and its negative impact on the

productive sector (agricultural production, manufacturing and mining) and investment. the table shows growth rates in Aceh from 2002 until 2005. Not surprisingly, the economy shows a pronounced decrease in 2005 (down by 13%), although that was primarily caused by the slowdown in the mining and quarrying sector and the closely linked manufacturing sectors. some services sectors (particularly transport but also trade, hotel and restaurants) show a strong increase, probably due to the reconstruction effort. more worrying for poverty considerations in Aceh, the agriculture sector also shows a stark decrease after three years of growth.

These negative growth figures have translated into a decrease in per capita Gdp in Aceh, which has fallen from IdR 9.5 million (approx Usd 1,040) in 2004 to approximately IdR 8.7 million (approx Usd 950) in 2005, a decrease of 9%.

since the tsunami, prices in the affected regions have increased more sharply than the national average. Year on year average inflation in Banda Aceh for 2006 (January to september) was 29.3%, compared to only 16% for Indonesia as an average. These inflation figures are capturing the hike in prices due to the reduction in petrol subsidies of October 2005. monthly average

inflation figures for 2006 are lower, but still higher in Aceh than the national average (6.5% vs. 4.0% nationally). the increase in prices has been mostly driven by rising transportation costs, which have translated in an increase in prices of construction materials, food and most other tradable goods. Wages have also increased substantially - wages for unskilled construction workers were on average 30% higher in 2006 than in 2004, whilst wages for semi-skilled construction workers were almost 65% higher. the reconstruction effort has had positive backward and forward linkages for many businesses in Aceh, as well as providing employment for many Acehnese, but the increasing cost of living will be reducing any benefits to the population from the reconstruction effort or higher wages.

the tsunami has also resulted in a large trade imbalance in the province. Whilst exports remained relatively constant in 2005, the volume of imports jumped by 500%, as a result of the large reconstruction effort and the disruption of most production in the affected areas right after the tsunami. this trade imbalance is currently being financed by international aid and large revenue transfers from the Indonesian government. However, this is not sustainable in the long term and Aceh will have to produce its own tradables to be able to continue

Economic Growth Rates in Aceh (%)

2002 2003 2004 2005

Agriculture 2.13 3.27 6.04 -8.88

mining & Quarrying

66.79 9.86 -24.06 -33.57

Industries 5.45 1.68 -17.8 -20.53

electricity & Water

-3.16 16.98 19.53 -1.83

Building/ construction

13.28 0.95 0.92 -23.96

trade, hotel & restaurants

2.18 2.46 -2.68 12.23

transport & communication

4.17 3.87 3.67 45.32

Banking & Financial

23.95 30.99 19.45 6.34

services 5.95 6.31 20.14 -0.65

total 20.07 5.52 -9.63 -13.45

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importing at current or even substantially lower levels. to this end, it is important that the provincial and local governments develop a common vision about the economic development of the region.

PRIVATE SECTOR DEVELOPMENTBRR, the regional government as well as many donors share the vision of turning Aceh into a modern, globalized and open economy. to that end, in parallel to the sustainable economic development strategy being developed, many activities are currently underway to ensure assist local business and private sector to raise up to the challenge and be a main contributor to the reconstruction effort in Aceh and Nias as well as to provide a better living for the people.

Exploring Investment OpportunitiesNumerous investment opportunities exist in the region. the potential sectors of interest include free trade and free port zone Sabang, fishing and fishery industry, tourism (particulary in Nias), hotel and restaurant business, moulding industry, animal husbandry industry, development of plantations and recreational forests, etc. But a difficult business environment has hampered the development of strong and competitive local enterprises and the interest of foreign and domestic investors to explore available opportunities in these sectors.

Nias suffers from its remoteness for markets, but investment in its infrastructure offers economic opportunity. the Law on the Governance of Aceh (LOGA), passed in July 2006, provides Aceh with an opportunity to improve the business enabling environment. the BRR, together with the Aceh Investment promotion Board (BKpmd), as well as IFc and Foreign Investment Advisory service (FIAs), is working on promoting investment by drafting a robust investment law that uses the flexibility and opportunities entailed in the LOGA. Other initiatives that will assist in strengthening the local private sector is the Investor Outreach Office (IOO), which will provide investment support services and a monthly event (the Business Gathering) that facilitates networking as well as information sharing and discussion among the business community.

Banking and MicrofinanceBy the end of year 2005, there were 16 conventional banks in Aceh, with 207 offices and 20 BPR (Bank Perkreditan Rakyat), with total assets IdR 16,6 trillion (Usd 1,8 billion) and IdR. 13,9 trillion (Usd 1,5 billion) in deposits.

The total growing assets were mostly influenced by growing deposit (dpK) at 75%, whereas LdR had a relatively slow growth, because of instability of the real sector and increasing interest rates. comparing to credit composition in 2004, working capital credit grew the most (23%) whilst consumption grew at 16%. Non performing loans shows a limited increase after the tsunami (from 2.8% to 3.1%).

58% of all credit in Aceh’s banking system went to small and medium enterprises (USD 0,2 billion). Larger firms with a national or even international presence are likely to get credit from banking institutions outside Aceh. the small and medium enterprises are the backbone of Aceh’s economy. They are also major providers of employment, so their growth and success, with strong backward and forward linkages in the rest of the economy, is a key component of Aceh’s economic development. With the current reconstruction effort and its scale, there are many opportunities for Acehnese businesses to provide goods and services and at the same time expand and learn new skills. But often, small and medium enterprises are constrained by a lack of access to finance. Microfinance and other instruments (venture capital, gap financing) should be developed to ensure that small businesses also have access to finance.

Banking Indicators

Indicators 2002 2003 2004 2005

Asset (IdR trillion)

7.608 9.880 10.784 16.588

dpK (deposits) (IdR trillion)

6.083 7.656 7.952 13.887

credit (IdR trillion)

1.578 2.123 3.201 3.634

LdR – loan to deposit ratio (%)

25,94 27,73 40,25 26,17

NpL (%) 2,98 2,65 2,80 3,06

(Indicative exchange rate USD 1 = IDR �,150)


Economic Development Strategy

After 2 years into the recovery programme, this is an opportune moment to prepare for the transition to a longer-term development programme. the reconstruction effort may boost Aceh’s economy in the short run, but it will not in itself improve Aceh’s competitiveness. some characteristics of the reconstruction effort (dutch disease, environmental concerns) might be detrimental to long term sustainable development. these should be taken into account and addressed. existing gaps of the reconstruction effort in key sectors (transport, environment, energy and communications) will constraint long term sustainable development.

BRR is assisting regional governments to develop a sustainable and long term economic strategy for Aceh. Such a long term economic strategy should take both the current scenario of large aid flows and post-conflict development as well as Aceh’s pre-tsunami economy into account. An additional factor of such a strategy is the increasing financial resources going to provincial and local governments after the implementation of Law 11/2006 (LOGA). LOGA will provide Aceh with greater autonomy regarding policy making, management of natural resources as well as infrastructure financing.

the economic development strategy will build the foundation for a globalized economy, following a sustainable growth path that does not compromise future growth. Key conditions that have been identified for a modern and competitive economy are:

an internally-integrated market and open economy;

a friendly business environment;

a private sector driven economy;

highly developed transport facilities;

a well-trained and educated workforce;

an environmentally balanced growth path; and

an efficient government bureaucracy

the development of the sustainable economic development strategy will be accompanied by a series of initiatives (the setting up of an economic monitoring system, a monthly seminar series on sustainable economic development) that will contribute to leaving behind a better system for analysis, forums for discussion and a better understanding of economic issues in Aceh’s civil society.

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The BRR financial and investment capital institutions sector is focusing on the development of smes through assisting micro-Financing Institutions (LKm). the programme was initially in 2005 oriented towards the emergency phase, with disaster victims as the target beneficiaries. In 2006, the programme has broadened beyond the tsunami and earthquake inflicted areas into all districts and cities across Aceh. It has also increasingly addressed the need of capacity building and building networks, especially through the Aceh micro-Finance center (Acmc).

ADB has a large project to assist Acehnese banks to provide credit to those smaller businesses. AdB started preparing the Livelihood & Microfinance Sub-Project (LMS) in late 2005. The Microfinance component was designed to deal with the formal financial sector and registered microfinance institutions, collaborating with the existing “people’s credit banks” (BpR) in Aceh, 20 in total, eight of which are private-owned. several BpRs were directly damaged and affected by the earthquake and the tsunami, others indirectly affected. consequently, collaboration with the BpRs included rehabilitating and assisting them to further normalise their operations, and at the same time, providing the capabilities, skills and technologies to enable the BpRs to provide accessible financial services and products that are responsive to the rehabilitation and reconstruction needs in NAd and Nias. some of the activities undertaken include :

advocacy and adoption of ‘best practices’, including the group lending system drawn from Grameen Bank model,

dissemination of latest technologies in microfinance,

training for microfinance loan staff of BPR,

complementary re-financing registered and licensed as a microfinance innovation fund (MIF). The BPRs that participate in this project have already reached more than a 1,000 women client savers/ borrowers, and USD 65,000 in total microfinance loans disbursed, as of end of October 2006. Repayment is 100%.

many small enterprises are agriculture-based, and farmers also need access to credit facilities. programmes and instruments should be extended to ensure that this group is not excluded, and particularly to help to address rural poverty.

Business EnvironmentOften, a major challenge in developing local private business activity is the lack of skills and capacity in business basics. several institutions are assisting businesses directly to address these issues. An example of this is a pilot programme implemented by the International Finance corporation (IFc). Approximately 500 people -35% of them women- have participated since April 2006.

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Training has consisted of core consulting skills, financial management, and pc skills for businesses.

many actors are also assisting the private sector to come together in business associations and sectoral associations, such as the NcBA coffee Forum. such associations with similar interests and problems have a stronger voice than individual businesses, at the same time as offering economies of scale and coordination opportunities for activities that individual businesses may not undertake on their own. Assistance is being provided to organise those business and sectoral associations, although their sustainability would require that members increasingly shoulder the costs.

Business associations can also be useful in advocating for a friendlier business environment, that minimises red tape and bureaucracy that impedes private sector development. Assistance is being provided to a variety of private sector actors (chamber of commerce, sector associations) and the government to develop ‘best practice’ solutions, such as ‘One-stop-shops’ for registration of new businesses and a streamlined and transparent tax administration. As these associations grow more vocal, other areas that may be constraining private sector activity should be addressed, together with the government and the assistance of donors.

RURAL LIVELIHOODSConflict, earthquakes and the tsunami have severely damaged the agriculture sector, and have left around 50% of the rural population living below the poverty line. moving on after the relief phase, restoration of livelihoods is the most important immediate challenge. A survey conducted by IOm shows that beyond immediate need of food, water and shelter, what tsunami victims most strongly wants is livelihood support. 1

Rehabilitation and reconstruction in the agriculture sector are aimed at restoring productive assets, reducing poverty, and developing the potential of the agriculture sector to contribute more to Gdp. In restoration of livelihoods, market linkages are of vital importance. many actors have been active in this area, and a variety of studies on individual sectors have been completed such as by IFc on seaweed, palm oil, cocoa and peanuts, UNdp on coffee or FAO on livestock. AdB also has large programmes to develop livelihoods in livestock,

1 IOM, “Settlement and Livelihood Needs and Aspirations of Disaster-Affected and Local Community in NAD:, May 2005.

food crops and estate crops. currently poverty in rural areas is having a negative impact on health and productivity. the agriculture sector has potential to make enormous inroads into poverty reduction, but this will not happen without massive investment into modernising agriculture.

AgricultureCurrently agriculture (including fisheries) accounts for 22% of Aceh’s economy, and this contribution is expected to increase as oil and natural gas reserves decline. the contribution to Gdp on Nias is even higher, with the absence of revenues from oil and natural gas. Agriculture is also the main source of employment providing work for over 50% of the labour force. modernising agriculture and connecting farmers, both women and men, to information, extension services, credit, processing, and markets are seen as the key to poverty alleviation and sustainable development in Aceh and Nias.

Over 50% of the farm workers in Aceh and Nias are women, however women represent a lower percentage of farm or land owners, hence have less decision making power. Gender equity needs to be mainstreamed throughout the rehabilitation and reconstruction process in the agriculture sector to maximise benefits and ensure the overall success of programmes and initiatives to benefit women and families.



Until 2004, the agricultural sector had shown mixed results, with many of the main crops decreasing production (e.g. soybeans, chilies or banana). Among agricultural products, the majority (98%) is coffee and exports of other agricultural products, like cocoa, vanilla and patchouli, are constrained by small-scale production and volatile output. processing of agricultural goods is rare and many Acehnese products (e.g. rice, coconut) are processed in North sumatra and sent back to Aceh for consumption, robbing Aceh of much needed value added activities and jobs. Most farmers in Aceh and Nias have mixed livelihoods, consisting of various combinations of food crops, livestock, estate crops, and fisheries.

Food CropsFood crops provide the life line for rural families living below the poverty line while contributing significantly to Gdp (8.7% in Aceh). the tsunami caused damaged to over 70,000 hectares of farmlands. to date, about 50,000 hectares of fields have been rehabilitated and brought back into production, through cash for work, community contracts, material support for seeds and fertilisers, and provision of agriculture equipment. this is one of the major success stories of the rehabilitation process, and reflects the combined efforts of the communities, government agriculture services, BRR, AdB, FAO, and numerous NGOs.

However, thousands of hectares of severely damaged farmlands remain unproductive, and over half the farmers in rural areas are still living below the poverty line. thus, an urgent programme is required during the period 2007-2011 to rehabilitate the remaining farmlands or develop alternative livelihoods, and to develop the potential of the food crops sub-sector for alleviating poverty and contributing to Gdp.

LivestockLivestock raising is mainly carried out by smallholders, both women and men, and contributes significantly to the livelihoods of most farming families. contribution to GDP in Aceh is about 5.5%, equivalent to that of fisheries, and there is considerable potential for expansion.

the tsunami devastated the coastal livestock populations, including the loss of 40,000 cattle, 40,000 buffalo, 58,000 goats, 9,500 sheep, 1,300,000 chickens and 570,000 ducks. As a result of the conflict and tsunami, there is now a shortage of livestock in Aceh and livestock products have to be imported from outside Aceh, resulting in the highest meat prices in Indonesia: beef Usd 7.60/kg and goat meat Usd 8.70/kg.

the 2006 programmes of AdB, BRR and FAO are laying the foundations for livestock improvements, with direct financial assistance to livestock groups (revolving funds) and support for the rehabilitation of support services (extension and training facilities, Integrated Animal Health Centers, artificial insemination, control programme for bird flu, livestock markets, meat markets and abattoirs).

Estate Cropsmost estate crops in Aceh and Nias are grown by smallholders, and contribute to family livelihoods, as well as to Gdp (4.5% in Aceh).

During the conflict, it was not safe for farmers to tend their estate crop gardens, and many plantations (total 390,000 hectares) were left unattended and largely unproductive. the tsunami damaged an additional 28,000 hectares of estate crops (coconut, rubber, oil palm, cocoa, etc.). to date, about 10,000 hectares of estate crops have been rehabilitated/developed under the joint BRR/ADB programme, along with the rehabilitation of important support services (extension and training, office facilities, laboratories). In spite of these investments, there is still a huge need for rehabilitation and reconstruction in this sub-sector.

FisheriesRehabilitation and reconstruction in the fisheries sector will be essential to restore productive assets, reduce poverty, and develop the potential of the fisheries sector to contribute to Gdp and many thousands of rural people. Whilst rehabilitation of the fisheries sector continues to make good progress during 2006, the need for substantial further investment is becoming increasingly clear. estimates suggest Usd 900 million is required during the period 2007-2012 for rehabilitation and reconstruction of the fisheries sector, and to develop the potential of the fisheries for alleviating poverty and contributing to Gdp. such investment is expected to generate substantial returns with gross revenues in excess of Usd 1.5 billion2 over a five year period.

Capture FisheriesCapture fisheries provided food and income for many poor coastal families before the tsunami. the sector was dominated by small-scale fishers, and during 2006 progress continue to be made in replacement of lost

2 Pre-tsunami capture fishery values are estimated as USD 1�� million, of which around 68% comes from capture fisheries and 32% from aquaculture products. Improved investment and management is likely to bring significant improvements in economic value of capture fisheries, conservatively estimated as a 20%/year increase over 5 years. Pre tsunami farm gate value of aquaculture produce in Aceh was USD 56.5 million. Investment is expected to lead to farm gate values greater than USD 100 million/year.


small vessels with over 4,000 new boats delivered by BRR, mmAF, other Government agencies and donors, replacing a high proportion of the lost vessels on mainland sumatra.

While smaller vessels have been replaced in many places, this has not always happened where they are most needed and where they form an integral part of assets for livelihoods. many owners, skippers and crew of larger vessels still remain unemployed usually through lack of operating capital which may have previously come from outside the community, or indeed district. safety and quality of boats remains a concern, and in the west coast islands of Nias, simeulue and the Banyak islands, many poorest fishers still await replacement of small boats for simple subsistence fishing.

Concerns that coastal fishing will sooner or later become unsustainable, as elsewhere in south east Asia, have grown during the year. detailed resource surveys required to scientifically substantiate the condition of the stocks, as a basis for rational management measures are increasingly needed for subsistence and commercial fleets. Improved capacity of government and fisher organisations is also essential to better management of the sectors development. more emphasis is needed on hygienic handling of the fish starting on board the vessel,

improving and managing the cold chain, fish processing and ice plants, markets, cooperative development, training, value additions to fish products and other infrastructure so that fishing communities can get greater rewards from their catch.

Aquacultureprogress has been made in aquaculture rehabilitation, by BRR, AdB, FAO, UNdp and NGOs. Around 6,800 hectares or around 25% of the damaged ponds and canals along the north-east coast and west coasts have been rehabilitated by end of 2006, although many ponds are still not operating at pre-tsunami levels. progress has also been made during 2006 in rehabilitation of shrimp hatcheries3, and various small-scale aquaculture activities such as marine fish cages, and grouper and milk fish nursing. Further investment is essential to rehabilitate the remaining damaged ponds and canals, as well as rebuild and improve supply and marketing chains to restart this important coastal economic activity. Investment is also needed to strengthen services for aquaculture farmers, develop capacity among farmer groups for better management and improve access to markets.

3 It is estimated that 50 shrimp hatcheries will be rehabilitated by the end of 2006, with 35 already operating. The remaining 60% out of the 223 hatcheries damaged require support.



the aquaculture sector, producing valuable and sought after products such as shrimp, marine fish and seaweed, has major potential to contribute to the economy of Aceh and improvement of livelihoods. the coasts of Aceh and Nias have many suitable areas for growth of marine and brackish water farming, and the inland areas substantial potential for freshwater fish farming. Additional public and private investment in farming, servicing institutions, supply chains and market access will be essential to tap the development potential of the aquaculture sub-sector, and its contribution to rural livelihoods.

Fisheries InfrastructureThe earthquake and tsunami caused major damage to fish landings, jetties, harbors and fisheries infrastructure. the shallowing of many estuaries and river entrances continues to make access to landing places more difficult and dangerous, and the coastal environment remains unstable in many areas. Good progress with support from BRR, AdB, UNdp and others has helped restore some of the damaged fisheries infrastructure during 2006, but the fisheries infrastructure remains severely under funded.

FUNDING THE RECOVERY


GOI (2.2)

Damage and Loss Assessment

(4.5)

NGOs (1.6)

NIAS (0.4) DONORS (2.1)Inflation (1.2)

GOI ( 0.5)

- Upgrading facilities in Tsunami- and earthquake- affected areas

- Post-conflict reintegation and development programs NGOs (0.4)

potential soft loan (0.7)

10

9

8

7

6

5

4

3

2

1

0Needs Programme

Committedbut not allocated (2.0)

Alreadyallocated to specificprojects (6.0)

Rebuilding (6.1)

Building back better (1.9)

grants (0.4)DONORS

Reconstruction Need and Allocated Fund

Source : BRR & World Bank Staff Calculation

FINANCING IN 2006It is important to note that financing needs for reconstructing Aceh and Nias were calculated based on data from early 2005 . Furthermore, they are based on the concept of reconstructing to the level of what existed before the tsunami; before the tsunami, Aceh had a 30% poverty rate.

To find the core minimum needs the lowest figures of the damage and Loss assessment conducted in January 2005 were put together with Bappenas masterplan of

April 2005. then for each sector, an addition was made on the assumption of 15 percent operational cost and 20 percent inflation. There a growing opinion amongst those working in Aceh and Nias that a more up-to-date assessment of financing needs may be required based on changes in operational cost, inflation, and other dynamics on the ground, as we move into 2007.

The financing needs for reconstruction in Aceh and Nias are estimated at Usd 6.1 billion. this is comprised of damages and losses from the tsunami estimated at Usd4.5 billion, the march 2005 earthquake in Nias added Usd400 million, and an additional Usd1.2 billion has been included for rising inflation.

the response from the international community to the tsunami was unprecedented. Adding together the Government of Indonesia’s contribution with that of NGOs and donors, the overall expected spending on reconstruction is approximately Usd 7.1 billion. By end of October 2006, USD5.8 billion worth of projects and programs had been allocated to the reconstruction effort in Aceh and Nias. this is more than 80 percent of the anticipated total reconstruction programme. Now, the Government of Indonesia, donors and NGOs are almost equal in size with around Usd 2 billion each.

there is an opportunity to “build back better” but rising inflation makes the reconstruction programme more expensive. With Usd7.1 billion in resources and Usd 6.1 billion in needs, additional resources of about Usd1 billion could be used to raise Aceh out of a poverty level of 30% and also to invest in long-term programs. post tsunami, the region has experienced high inflation, as high as 40% at its peak in January 2006, compared to 23% in medan and 17% nationwide. this has led to an increase in the early estimates of the cost of reconstruction, and a reduction in the additional resources available for “building back better”.

funding the recoVery


Aceh’s Revenue

Aceh’s revenues increased six fold following decentralization and special Autonomy. the amount managed directly by the Acehnese province and local governments increased five times. Aceh is the third richest province in terms of public resources per capita. At the same time it has the fourth largest poverty head count of all provinces in Indonesia. Following the tsunami, an additional 325,000 people have become vulnerable to falling below the poverty line. In 2006, total funds flowing into Aceh are estimated at IDR 28.2 trillion (USD 3.1 billion). Having such a huge amount of resources, Aceh has a golden opportunity to reduce the current high levels of poverty to below the pre-tsunami levels.

(Source : Aceh Public Expenditure Analysis, World Bank)

- 200 400 600 800 1,000 1,200 1,400 1,600

Environment

Fisheries

Agriculture & Livestock

Other Infrastructure

Flood control, Irrigation works

Water & Sanitation

Enterprise

Community, Culture and Religion

Education

Governance & Adm

Health

Transport

Housing

US$ Million

GoI Multi/Bilateral NGO

Sectoral Allocations


SECTORAL ALLOCATIONS AND GAPSthe diversity and preferences of the players has lead to a mixed focus on the sectors. the Government of Indonesia has been focusing on housing and local government development. donors are dominant in transport and the community, whilst NGOs have been playing a leading role in housing, health, water and sanitation, and livelihoods.

critical gaps remain across sectors and in regional areas. Though sufficient funds have been pledged overall to support the rehabilitation and reconstruction programme,

the current allocation of funds already programmed by the Government and donors will not meet the minimum needs against the original damage assessment in some critical sectors, such as transport and environment. the extent of rural poverty indicates other major funding gaps in terms of broader development.

On the regional allocations, areas around Banda Aceh and Aceh Besar have more than adequate resources to rebuild, whilst other areas such as a large parts of the West coast, south of meulaboh, and the north-east coast of Aceh (Kab. Aceh timur and Aceh tamiang) still have inadequate allocations to meet even 50% of their needs.

�02006 Progress rePort

KOTALHOKSEUMAWE

KOTALANGSA

KOTA SABANG

KOTA BANDAACEH

BENERMERIAHACEH

JAYA

NAGANRAYA

ACEHTAMIANG

GAYO LUESACEHBARATDAYA

ACEHUTARA

BIREUEN

PIDIE

ACEH BESAR

ACEHBARAT

ACEH TENGAH

ACEH TIMUR

ACEHTENGGARAACEH

SELATAN

SINGKIL

SIMEULUE

67

86

74

190

62

5342

42

556967

117

72

38

43

82

68

NIAS

NIASSELATAN

45

40

NIAS

0 5025

Kilometers

Skala peta 1:500.000 pada kertas ukuran A3

Tanggal pembuatan peta: 01 Desember 2006 (AM)

Sumber DataData rasio kebutuhan: World Bank, 1 Desemeber 2006Batas administrasi: BPS, 2006

District Boundary

Not Affected

Below 50

51 - 75

76 - 100

101 - 125

> 125

Rasio Pembiayaan Atas Kebutuhan (%)

FUNDING AND NEEDSACEH AND NIAS ISLANDS

NIAS


Aceh And niAs t wo yeArs After the tsunAmi�1

Disbursements and Allocations


Donor

31%

NGO

60%

GOI

28%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Pledges Allocated Disbursement

US$

Mill

ion

38%

DISBURSEMENTS AND ALLOCATIONSdisbursements have been steadily rising since November 2005 and now stand at about Usd2.2 billion. On average in 2006, disbursements have been above Usd100 million per month, which is substantially higher than in 2005 but below expectations. the disbursement rates from allocated funds vary significantly amongst key players: NGOs have disbursed 60%, GoI 28% and multilateral/bilateral donors 31%.

Sector Disbursment Vs Allocated Project


Bank & Finance

Other Infrastructure

Communications

Transport

Flood control, Irrigation works

Enterprise

Governance & Adm (incl. land)

Community, Culture and Religion

Housing

Fisheries

Environment

Energy

Education

Water & Sanitation

Agriculture & Livestock

Health

0 10 20 30 40 50 60 70 80

the peak in the reconstruction effort in terms of disbursements is yet to come. For the planned reconstruction period (2005-2009), the average disbursements rate is expected to be Usd1.6 billion per year (approx. Usd130 million per month). the disbursements to date have averaged around Usd110 million per month, suggesting that there will be a higher rate of activity in the years ahead. However, as a group, NGOs are showing 60% disbursements indicating that they have in 2006 passed their peak in delivery.


Multi Donor Fund

With such a large influx of funds, one of the biggest challenges faced by the Government of Indonesia is ensuring that the resources are managed effectively and in a coordinated and transparent way. the Government of Indonesia requested the World Bank to set up the multi donor Fund, which to date represents over USD 545 million in pledges from 15 donors with more donors expected to join. Of the total amount pledged by donors, 88% (USD 482 million) has been allocated to 17 defined projects. The Fund has received USD 287 million from donors and disbursed USD 173 million towards those projects to date, of which the implementing partners have spent 71% (Usd 123 million).

Pledges contributions and cash paid into the Multi Donor Fund as of 30 September 2006

Source Pledge amount USD million

Contribution Agreement signed

USD million

Cash Received USD million

european commission* 254.17 254.17 53.27Government of Netherlands 100.00 100.00 100.00Government of United Kingdom 48.25 10.00 10.00World Bank` 25.00 25.00 25.00Government of denmark 18.03 18.03 18.03Government of Norway 17.96 17.96 17.96

Government of canada 11.04 11.04 11.04

Government of sweden 10.44 10.44 10.44Asian development Bank 10.00 10.00 10.00Government of Germany 10.00 10.00 7.40Government of United states 10.00 10.00 10.00Government of Finland* 10.16 10.16 5.56Government of Belgium* 10.16 10.16 2.55Government of New Zealand 8.80 8.80 4.40Government of Ireland 1.20 1.20 1.20

Total Contributions 545.20 506.95 286.85

* Exchange rate as at 30 September 2006, source : World Bank

source : MDF Report

THE CHALLENGES AHEADAlthough there has been much progress and enormous effort, the challenges ahead will continue to be demanding. With more than 80 percent (Usd 5.8billion) of funds already allocated to projects there is less scope for major adjustments to match needs in

the years ahead. With current funding being disbursed more slowly than expected, the peak yet to come, and a mismatch in allocations against sectoral needs, there is an opportunity for some of the larger donors to close the sectoral funding gap in 2007 to ensure that the reconstruction programme appropriately meets the needs of the regions.



For much needed improved planning and budgeting and for increased transparency and accountability, action must be taken to improve financial management capacity throughout local governments in Aceh. A first, crucial, step is for local governments to ensure they have proper working regulatory frameworks in place followed by working mechanisms to promote participatory planning. clear accounting and reporting procedures need to be put into practice along with the establishment of an independent and transparent monitoring and oversight mechanism with powers of enforcement.

Local governments need to be involved as much as possible in the implementation of BRR projects to develop local government capacity. the results can be used to monitor progress in public financial management capacity, signaling both the ability and willingness of local governments to play a larger role in the design and implementation of development projects financed by central government and external partners

Public Financial Management1

A public Financial management (pFm) survey has been conducted across Aceh to evaluate financial management capacity in district and city administrations. the pFm results provide a snapshot of relative strengths and weaknesses in public financial management. The framework is divided into nine strategic areas identified as key determinants of effective public financial management at local government level. preliminary results show a wide divergence between administrations and between strategic areas within an administration.

Overall, relative weaknesses tend to be in the areas of public debt and investment (achieving an average score of only 29%), external audit and oversight (37%) and local regulatory framework (38%). planning and budgeting scores only 44% across the 14 sites surveyed, indicating a clear need to improve capacity in this area given the huge increase in funds if medium and long-term development goals are to be reached. the highest average scores were achieved for procurement (61%) and internal audit (56%). However, even higher scores in strategic areas show weaknesses in some areas. For example, procurement, whilst scoring high overall, only achieves only 33% for systems and procedures to handle complaints. Newly formed districts tended to score significantly lower than their ‘older’ districts (50% compared to 40%, on average).

1 The PFM framework was developed by the World Bank and the Government of Indonesia’s Ministry of Home Affairs. The survey work was financed by BRR, USAID and The World Bank.

For details see: Aceh Public Expenditure Analysis (World Bank, 2006).

PFM scores for 14 sites

0

20

40

60

80

100Banda Aceh

Aceh Jaya

Aceh Besar

Aceh Barat

Nagan Raya

Aceh Timur

Aceh Utara

Pidie

Bieruen

Sabang

Aceh Tengah

Langsa

Bener Meriah

Singkil

Average scores for 9 strategic areas

020406080

100

Regulatoryframework

Planning &budgeting

Cashmanagement

Procurement

Accounting &reporting

Internal audit

Public debt &investment

Assetmanagement

External audit &oversight

MANAGING THE RECONSTRUCTION


THE REGIONAL PROGRAMME At the cFAN2 in may 2006, BRR introduced a regionalisation strategy for recovery and reconstruction. This reflects the recognition that if recovery and reconstruction of Aceh and Nias is to be sustainable and lead to long-term economic development, the greater ownership and responsible management of the recovery processes and assets by local governments was vital. the strategy has been welcomed by stakeholders across the board and has become the main thrust of the UN coordination support to BRR and local governments for 2006 and beyond.

the operationalisation of the strategy has been a challenge. there are three main components to be established within the strategy:

to establish Joint secretariats with local government

to establish leadership in regions for decentralising decision-making

to establish the operational capacity in regions to improve delivery at local level

the concept of “Joint secretariats” was introduced in conjunction with the launch of the regionalisation strategy. BRR Nias first developed a joint secretariat based in Bappeda offices in May 2006. The mechanism recognises the local government as the main stakeholder responsible for the long term development while acknowledging that BRR and other stakeholders involved in recovery efforts are working in Nias for a temporary period. the objective is to support the government in carrying out the rehabilitation and reconstruction process with efficient and effective planning, prioritization and decision-making, including managing information and strengthening links and communications between stakeholders.

the leadership for the regional programme was established by appointing BRR regional heads for the six regions. However, while BRR has recruited staff and is attempting to strengthen the capacity and delegated authority of BRR regional offices, the progress for establishing Joint secretariats has been slow, with BRR at the regional level preoccupied with the implementation of its own programmes, most notably housing reconstruction, and with less capacity and attention on planning and coordination activities. promotion of an area-based collaborative approach with local government has been limited where BRR regional offices have focused more on implementation of BRR-funded programmes.

•

•

•

BRR regional heads in particular need to show greater leadership in coordination in housing, including where the desire to accelerate housing implementation has resulted in BRR housing staff stepping in too fast to take over the beneficiaries and sites of NGOs whose implementation has appeared slow. the challenge for the coming year for BRR will be to achieve the right balance between fulfilling the mandate of enhancing the capacity and capability of local governments to assume greater coordination and planning role and the need to demonstrate significant and measurable progress in its own reconstruction programmes.

mAnAging the reconstruc tion

Aceh And niAs t wo yeArs After the tsunAmi��

The Objectives of the Regionalisation

decentralising the decision making on implementation and problem solving local governments and communities will be further encouraged to become full partners in the recovery and reconstruction process with greater sense of ownership. this is critical for sustainability of recovery and reconstruction and long term responsible management of transferred assets;

Bringing the coordination function of BRR much closer to local governments and communities, policy formulation and decision making will benefit from lessons identified and good practices at the local level. In turn, such informed policy decisions will help to regulate recovery and reconstruction to ensure equity and transparency;

Empowering local level decision making on implementation, gap filling and resource re-allocation, recovery and reconstruction will see more effective, efficient and fair distribution of resources;

Bringing stakeholders together at the local level, they can work more closely to complement each other to remove bottlenecks, achieve a more holistic approach to rebuilding of communities and the restoration of livelihoods;

positioning and strengthening coordination much closer to the community level, the wishes and concerns of beneficiaries can be more easily identified and then communicated to policy decision-makers and, at the same time, beneficiaries will have access to information that is pertinent to their rights and entitlements.

•

•

•

•

•


COORDINATION WITH STAkEHOLDERS From the start of the programme implementing partners have been willing to coordinate. However the scale of the programme, and the number of actors, meant that coordination has not proved easy. All parties have learned that coordination means more than sharing information, it means investing significant staff time to the ongoing coordination process, and assigning those staff with the authority to make operational decisions. experience from 2005 through 2006 has helped partners to improve the coordination process and introduce more appropriate mechanisms.

Coordination at the Sub-District Levelthe coordination and cooperation amongst all stakeholders at the sub-district level has improved during 2006 in many parts of the West coast through the establishment of the Kecamatan coordination and Implementation mechanism (KcIm). UNORc has led the introduction and facilitation of stakeholders in affected areas in and around meulaboh and calang. chaired by the camat and participated by NGOs, mukims and heads of villages, KcIm is deemed as the optimal level to collect data and information, whereby identifying constraints to recovery process, gaps and overlaps, and resolving these with locally available capacities where possible. In this regard, the KcIm is a critical component of the regionalisation strategy. Other organizations such as YIpd, LGsp and AIpRd/LOGIcA are also partnering in this effort. the KcIm is now being rolled out to the rest of the affected areas, including the North east coast districts, Kota Banda Aceh and Nias. to assist the local authorities, notably the camats, in making informed decisions, the standardized Kecamatan Reporting systems (KRs) has been introduced by the UNORc Information and Analysis section (UNORc IAs), as part of the UN support to the BRR information and data management efforts. It is envisaged that the data and information collected through the KcIm also feed into district and provincial level planning and decision making. this in turn will help in development and implementation of practical policies.

Sectoral CoordinationIn key sectors, some of the regional sectoral working groups have become much more effective with active participation and leadership by local government. In meulaboh, cipta Karya leads the shelter and settlement coordination at the district level. It chairs the bi-weekly coordination meetings, updates the activity matrix, and verifies the beneficiary lists with support by UNORC and LGsp respectively. Information from KcIm feeds into the district level shelter and settlement coordination. shelter and settlement coordination has been expanded to include infrastructure and water and sanitation with the aim of establishing linkages the shelter reconstruction and the provision of utilities such as electricity and water. In future, it is necessary to establish closer linkage between the livelihoods sector with the settlement and infrastructure to ensure that a lack of livelihoods opportunities does not prevent people from moving into newly built houses.

INFORMATION MANAGEMENTA highlight in 2006 has been the successful transition of the HIc/UNIms geographic information system to BRR through the establishment of the spatial Information and mapping (sIm) centre. BRR now possesses the spatial data capacities to support decision making and coordination through the development of maps, data packages and digital format products. the sIm centre, funded by the government of Norway, provides an invaluable service to the wider recovery community in support of their recovery and reconstruction projects. the sIm centre is also building the capacity of provincial Government Agencies to use spatial information for planning and decision making, with the eventual aim of facilitating the transition of this capacity out of BRR at the end of term.

the publicly accessible RAN database, BRR’s centralized information system, is based on voluntary NGO and agency information contributions. during 2006, the database has been populated with information on more than 5,000 projects. With continued technical improvements, the RAN database has become a repository of detailed project information and project progress reports. Key performance Indicators (KpI) illustrate sectoral progress and project developments. Financial information, such as commitments and disbursements, captures funding flows that underpin the recovery process and ensure transparency and accountability.



However, the RAN relies on voluntary contributions, hence the strong involvement of stakeholders is needed to ensure data quality and validation. this stakeholder involvement depends on user-friendliness of the system and a focus on priority areas and products to satisfy key stakeholder information requirements which is a continual challenge.

BRR’s expansion from a solely coordination role to implementing recovery projects has heightened the need for accurate data and progress information. stringent internal reporting mechanisms and specifically designed databases complement BRR’s efforts to keep abreast with developments. the challenge ahead is to integrate the various data systems to provide a consistent recovery overview of off-budget and on-budget efforts and help identify remaining gaps.

the newly established UNORc Information Analysis section (IAs) is supporting BRR in these endeavours. UNORc IAs provides an increased capacity to link disparate information sources and conduct analysis that informs decision-making. UNORc IAs has developed strategic partnership with local government institutions, notably Bps (National statistics Agency) and Bpde (Agency for the management of electronic data), to build long term capacity in information management and analysis.

UNORc IAs is also supporting BRR with its commitment to provide relevant information for the tsunami Recovery and Impact Assessment and monitoring system (TRIAMS). In May, Indonesia and the other major tsunami affected countries agreed to provide a common set of output and outcome indicators on recovery. the end of 2006 figures for Indonesia are include in the annexes of this report.

the establishment in 2006 of BRR regional and district offices and Joint Secretariats with the local government and UNORc has made the provision of timely and accurate data on recovery at the sub-provincial level a priority. to support this, Camats from 25 tsunami-affected subdistricts agreed in september to hold regular coordination meetings with organisations working in their areas and to adopt a standardised reporting format. the support of recovery organisations and the Joint secretariats has enabled this process to begin to collect data on recovery and to empower local government involvement and ownership. Moving forward, the joint secretariat offices play a key role in consolidating bottom up progress and needs data to inform effective policy making at the local level.

Tim Terpadu EXTERNAL SERVICES TEAM Tim Terpadu, translated as “external services”, was established in december 2005 as a support unit within BRR that combines a range of government services to assist foreign nationals and organisations participating in the recovery programme of Aceh and Nias. the unit comprises representatives from directorates of various government ministries, including the department of Industry, trade, Finance, Law and Human Rights, Foreign Affairs and the department of manpower and transmigration.

Information Analysis Section (IAS)

Recognizing the urgent need to improve analysis to enable effective policy making, BRR, UNIceF and UNORc signed a letter of agreement on 19 June 2006 to establish the UNORc Information Analysis section (IAs). UNORc IAs is consolidating available data sets from BRR, Bps (statistics bureau), line ministries and other partners within a results-based indicator framework to enable comparative demographic trend analysis on recovery. the objective is to ensure that stakeholders can make informed and timely adjustments to their assistance programmes by tracking the rate and direction of recovery and identifying unmet needs and inequities. this activity adopts a holistic approach by focusing on cross cutting themes, such as gender and vulnerability, to assess the full socio-economic impact of recovery on the lives and livelihoods of the people of Aceh and Nias. the activity will ensure sustainability and strengthening of local capacity in data collation, analysis and reporting through partnership with government agencies, including BRR, Bps and Bpde (electronic data management bureau). UNORc IAs will also continue to support and reinforce local government information management required for the overall recovery planning framework. Furthermore, the UN will commit itself to continue its support for the implementation of the Recovery Aceh Nias (RAN) database of BRR to promote and strengthen the Government’s coordination and monitoring capacity.


With the exception of agreements between the Indonesian Government and the United Nations and other international organizations domiciled in Indonesia, there are no Indonesian laws that specifically regulate the presence of foreign nationals and organizations in Indonesia for recovery assistance purposes. the Tim Terpadu is the first facility of its kind, established to address this situation and facilitate the processing and approval of various government administrative requirements through a ‘one-stop shop’ facility.

the international response to the tsunami and earthquakes in Aceh and Nias has resulted in thousands of foreign nationals and many international organisations working in Indonesia. Under normal circumstances, the administrative procedures for foreigners and international organizations working in Indonesia require a significant period of time to process and can be costly. the de-centralised government facilities offered by Tim Terpadu have streamlined these processes and during this year alone more than 7,000 individual immigration requests have been processed

Apart from the administrative requirements for foreign nationals and organisations working in Aceh and Nias, Tim Terpadu has also been responsible for providing operational assistance and concessions for the importation and transportation of equipment and materials for the rehabilitation and reconstruction programme. this is one of the most challenging aspects of Tim Terpadu’s operations as it relates to logistics and is subject to the level of planning and organisation of

participants in their procurement strategies and supply-chain management. the directorates for trade and customs and excise are responsible for this division within Tim Terpadu and their principle activity is to provide advice and support for the procurement of materials, especially with respect to imported goods and the transportation of goods between provinces. In addition, they assist local authorities in determining tax exemptions.

the inordinate amount of materials required for the reconstruction programme has stretched the logistical capacity of many organisations working in Aceh and Nias and Tim Terpadu operations now include help desk facilities to assist in procurement.

Tim Terpadu is providing services essential to the rehabilitation and reconstruction of Aceh and Nias and by doing so it is exemplifying the cooperation between the Government of Indonesia and the international community. Within a short period of time it has established a model of inter-governmental cooperation and it is anticipated that the operational procedures it has developed will assist in the future formation of a governmental response portfolio to disaster management. the unit’s strategy goes even further. With BRR’s exit strategy planned for 2009, Tim Terpadu will gradually normalise its operations to ensure, upon its disbandment, the hand-over of its operational procedures to local government departments in Aceh and Nias.

LOGISTICS, SUPPLY CHAIN AND SHIPPING SERVICESMany aspects of logistics continue to present major challenges to those engaged in the rehabilitation and recovery effort. The programme has enjoyed significant successes in the areas of timber and the introduction of the United Nations World Food programme shipping service. Other key issues include the impact of infrastructure projects on the supply chain, housing logistics, and an assessment of the logistics of non-governmental organisations engaged in construction projects.

The impact of infrastructure projects on the supply chain has been a significant unknown factor. To resolve this, BRR has hired an experienced civil engineer as a technical adviser to identify all infrastructure projects

Summary of Tim Terpadu Services

For foreign nationals:

Registration of foreign nationals

Visa authorisation

multiple and re-entry permits

temporary stay permits

extension of visitor permits

exit permits

For organizations:

Registration

tax exemptions

Advice and support for:

procurement of materials

Importation of goods

transportation of goods

••••••

•••

-

-

-



with their relevant timelines to determine both the supply chain impact and the ability of the transportation infrastructure to accommodate all requirements. this project commenced in June 2006 and is expected to conclude in december.

Housing logistics continue to remain a challenge. BRR Housing has set up a depot system with a commercial contractor to supply construction materials to all those engaged in the recovery process. the transport portion of this is relatively clear and straightforward. Logistical planning for houses to date has focused on the traditional type of house which is a worst case scenario as that is the most demanding based on overall weight and volume of materials. BRR has used this scenario to determine port throughput capabilities and believe they can move the material necessary but will encounter congestion in some ports. It is vital that the housing materials be moved as soon as practical because as the infrastructure projects are started in 2007 and beyond,

there is potential for increased strains on the transport system.

NGOs have taken up a large part of the housing burden and BRR is particularly grateful for their commitment to this. Because of the number of houses they have volunteered to build, the demands on them are great. there have been concerns about NGOs logistical capacity and ability to manage their supply chains. BRR has had technical advisors for part of this year to work with the NGOs who need assistance in an effort to enhance their planning and logistics capacities.

Timber supplytimber supply has proved problematic for Aceh and Nias reconstruction programmes. problems have occurred in the areas of administration of timber importing and transportation, lack of sufficient supplies of legally and sustainably produced timber, timber quality, appropriate timber usage, and price inflation. In the last year, BRR has implemented several initiatives to address these issues:

BRR has established the timber Help desk (tHd) that is attached to tim terpadu. the tHd has played a key role in providing timber information for relevant stakeholders or users that are dealing with reconstruction and rehabilitation in Aceh and Nias. the tHd organised a timber trade show held in medan on 19 – 20 June 2006. It prepared a list of verified domestic timber suppliers and brochures with information on timber administration procedure, timber quality, and timber suppliers.

tim terpadu provided streamlined procedures for the administration of timber importation and transportation working closely with the departments of customs and Forestry. tim terpadu also worked closely with GOI, UN Agencies and NGO’s whenever requested to resolve administrative problems.

FAO, mdF and AIpRd sponsored the timber Advisers who provided technical assistance to BRR Housing, tim terpadu and the tHd. the activities of the advisors included preparation of documentation, timber needs survey, workshops with stakeholders on needs and concerns, and liaison with ministry of Forestry and local government.

these efforts have resulted in the elimination of the “timber problem” as it was once known. challenges remain, but there is now an effective mechanism in place to provide assistance to NGOs, contractors and others who are engaged in reconstruction and rehabilitation projects

•

•

•

Building in Remote Communities in Nias

Remote communities are often left behind in recovery because of the incredible logistical challenges involved in building. In order to serve the communities of remote villages which are inaccessible by road, HeLp transports building materials by canoes and small rafts through shallow rivers.

the march 28, 2005 earthquake dramatically changed the geography of Nias Islands. muzoi Village, which has no connecting road, lost boat access when the earthquake elevated its nearby river. Now, only canoes and rafts can travel up the river.

In order to transport materials into muzoi Village, HeLp carved a one-kilometer road through surrounding forest to allow its four wheel drive trucks to reach the village river. From the soft river bank, without the help of a pier, building materials are then shifted onto canoes or rafts which travel down the shallow river. Loaded with concrete and other building supplies, this method has proven to be a dangerous but necessary course. these canoes and rafts dock at four different communities of the village along the river, unloading supplies.

HELP arrived in Nias following the December 2004 earthquake. When the March 2005 earthquake hit Nias, HELP began its shelter programme including in remote areas of the island.


The World Food programme Shipping Service

At the request of the United Nations Office of the Recovery Coordinator (UNORC) and the Government of Indonesia’s Agency for Rehabilitation and Reconstruction (BRR), the United Nations World Food programme (WFp) shipping service was established in November 2005 to facilitate sea delivery and logistics coordination for reconstruction and rehabilitation materials thus minimizing disruption in the reconstruction effort. A loan of Usd 3 million from the WFp Working capital Fund started the operation in a very short space of time. A grant of Usd 24.7 million from multi-donor Fund (mdF) enabled WFp shipping service to reach full operational capacity quickly.

WFp shipping service’s activities have included:

managing sea transport for UN, BRR and NGO’s humanitarian and reconstruction materials for tsunami-damaged communities with a fleet of landing craft and conventional vessels, for commodities in break-bulk unit loads or as RORO (roll-on roll-off) cargo.

providing logistics coordination, port captains, load consolidation, materials handling equipment—vital services to the reconstruction of Aceh and Nias.

moving building materials and commodities needed for communities to develop, ranging from sawn timber, steel frames, corrugated sheets, plastic pipes, cement blocks, gravel, sand, watsan equipment, vehicles, rice, noodles and biscuits, vegetable oil, fuel oil in drums and supporting equipment. established temporary landing sites and repairing sea-side access points to serve more than 30 locations in Aceh and on nearby islands where commercial operators have been unable to access, or have been unwilling to serve.

WFP Shipping Service ship fleet has been deliberately designed to be flexible to the demands of the reconstruction effort. When demand has dictated, the fleet size has been adjusted accordingly. As much as 83,572mt (representing 229,022 cubic metres) of construction material and food-aid were shipped during the period November 2005 until 6 October 2006, serving more than 80 organizations: UN agencies, NGOs and Indonesia government agencies.

On 1 August 2006, the shipping service implemented cost-recovery on the direction of the mdF and BRR as a prerequisite for additional funding. this stipulation is embedded in the concept of the shipping service as key to enhancing the potential for commercial operators to enter the market on the routes served and is an inherent element of the BRR strategy for economic stimulus.

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PROMOTING QUALITY, INTEGRITY AND EQUITY


QUALITY ASSURANCEQuality assurance includes development of systems and policies to oversee quality control of individual projects and outputs. Some quality shortfalls in the reconstruction programme relate to lack of skills, supervision or management intervention in delivery. Attempts to manipulate tenders, and compromising or ‘cutting corners’ on the quality or quantity of products used in project implementation, represent some of the ways in which the quality of work may be undermined. some issues of quality clearly relate to ethics and the potential misuse of resources.

Initial BRR work, that started in 2005 and continued until August 2006, in the area of quality assurance included the team of professionals contracted for the procurement Quality Assurance and monitoring (pQAm) programme. the team was deployed to review the tendering processes to identify areas of concern and to oversee the monitoring and delivery of government funded construction projects. Various weaknesses identified ranged from poorly managed tender processes through to lack of remediation of works. the delivery units (‘Satker’) employed to deliver the government projects unsurprisingly also suffered from a lack of experience in dealing with the scale of the projects, and in construction faced similar constraints to that of other implementing partners in logistics, materials supply and managing poorly performing contractors. since the conclusion of the work of the pQAm team a number of institutional arrangements have been put into place, including procurement services and Quality management units under the management of the BRR chief Operating Officer. NGOs have similarly faced problems in delivery quality, and several have taken significant steps in employing larger or more experienced contractors, employing staff and different systems for procurement, and where necessary taking decisive action in revising or re-doing work.

Construction Quality In Aceh and Nias many structures were severely damaged because most of the buildings were not built to withstand earthquakes, despite the region’s predictable and frequent earthquake activity. Rehabilitation and reconstruction must comply with building codes in design and practice in order to provide appropriate earthquake resistance and disaster preparedness.

However, a widespread lack of technical understanding of seismic design and construction detail, poor building skills and a lack of safety culture lead to irresponsibility on the part of building contractors in assuring a safe building. too often cutting costs in construction takes precedence over compliance. close supervision can alleviate some problems but contractors must be managed, taught, and obliged to meet the quality standards. some of the major NGOs in particular realised these weaknesses early on and adjusted their delivery methodology to put in place stronger systems of monitoring combined with extensive training of site supervisors. From anecdotal evidence implementing partners consider that quality and systems have improved. particular action taken has been against common examples of poor quality such as the use of too few or even a single rod as concrete column reinforcement; concrete columns cast in stages reducing concrete strength considerably; non-compliant concrete mix materials and poor mixing, again reducing concrete strength; using smaller diameter reinforcing bars; poor quality bricks, not tied into supporting structure so at risk of collapse. these examples in particular exacerbate the risk to human life in the event of an earthquake. experienced implementing partners have held training workshops on complying with building codes, workmanship standards, seismic design and construction detail in response to the widespread lack of technical understanding. NGOs less experienced in construction have adjusted by investing more in professional engineering expertise. the recognition that, whilst many NGOs have strengths in community based participation, the scale of physical reconstruction work was beyond their capacity, has been a difficult lesson. However, for a number of partners it has led to the engagement of private sector consultants and major contractors, which is resulting in more efficient and improved standards in construction.

Implementing agencies including BRR have employed additional local supervision consultants and trained community members in identifying faults. BRR Nias, for example, has trained supervision consultants on the Nias Building code, in aspects such as good design and construction principles. the supervision consultant must disseminate the Code amongst beneficiaries so that they, in turn, will be better able to monitor the construction of their own homes. Beneficiaries are equipped with a construction checklist and house unit blueprint, and supplied with construction complaint forms in the village office to record problems. A technical field officer will regularly visit the village, respond to any complaints, and conduct regular village meetings to monitor progress.

Promoting QuAlit y, integrit y And eQuit y


Construction quality is notably improving as beneficiaries increasingly have greater confidence in dealing with contractors.

ProcurementA significant ongoing challenge for BRR, local government, donors and NGOs, has been to employ speedy and appropriate procurement processes as close to the point of delivery as possible. capacity was often not available to handle the scale of projects and associated funds in the field; pre-existing capacity was better suited for smaller programmes. Also the standard processes for procurement for the sums of money involved tended not to be sufficiently fast or flexible. Where authority was delegated to the field for emergency response on such a scale, management capacity was stretched: where authority was not delegated, the systems proved slow and unable to respond to rapidly changing needs.

BRR is very keen to accelerate the pace of rehabilitation and reconstruction. A regulatory initiative to accelerate procurement was presidential decree No.70 that gave BRR leeway to directly appoint planning and housing contractors during the first 6 months of 2006. This enabled the appointment of some 900 small contractors to build housing. However one consequence of such fast track procurement practices is that it is more difficult for programme managers to defend the reason for appointment in the current scenario of enhanced and critical public scrutiny, including complaints from those contractors that were not appointed. As a result the authority to use a direct appointment approach has brought both benefits and new pressures. In applying this new system BRR adopted a very open pre-qualification process to vet potential contractors and consultants. this process led to over 3,000 companies putting

forward applications of which approximately 40% were accepted. Of those selected over 88% were Aceh based businesses.

Within BRR, through lessons from the mdF-funded pQAm programme and a recent World Bank analysis, weaknesses have been identified in implementation through the on-budget ‘Satker’ system. efforts are ongoing to improve the system, including establishing a dedicated procurement service Unit (psU) who will oversee procurement and introduce improvements, including e-procurement from early 2007.

INTEGRITY AND COUNTER-CORRUPTIONAnti-corruption remains a prime area of concern in the reconstruction programme. critical to the success of any counter-corruption agenda is to place it within a wider programme of strengthening organisational integrity and programme delivery. NGOs and implementing agencies are handling large fund flows and continue to be keenly aware of the need for vigilance for accountability. An important institutional component to counter corruption has been BRR’s Anti corruption Unit, known in Indonesian as sAK. the Unit, which has been operational since mid-september 2005, operates on the basis that an effective programme to counter corruption requires a combination of work in the areas of corruption prevention, education and enforcement.

the Unit also manages an active complaints management facility. since its inception to the end of september 2006, the sAK has received some 1,030 complaints. It should be noted that one case may consist of several individual complaints, such as in the case of a challenged tendering process. Of these complaints 40% related to tendering issues while a further 16% related to project implementation concerns. this included concerns about quality, timeliness etc. concerns about corruption represented 13% of all complaints received. A total of 767 complaints, approximately 75% of all complaints received, have been investigated and resolved, while 250 complaints remain under investigation. A further 13 complaints have been forwarded to specialised units for further follow up, including 7 complaints which have recently been submitted to the corruption eradication commission (KpK) for further consideration. the Unit is also finalising preparation for submitting further batches of these complaints. Among the 15% in “other” includes

Procurement Certification for Government Officials

presidential decree 8 requires that all government officials have to be certified in order to take part in procurement. this is to have applied from January 2006. However given the low rates of staff passing the required certification, this has been amended so that the requirement to be certified applies from January 2008. In the interim period government officials must have to undertake the required training at least, at the same time as seeking to pass the certification tests.


Other 15%

Rights demandby victim 7%

Rules, procedures& compliance 9%

PotentialCorruption 13%

Projectimplementation 16%

Tenderingissues 40%

Complaints Filed at The Anti-Corruption Unit

matters such as seeking ethical guidance and information as well as suggestions and complaints in relation to non-corruption criminal issues. the Unit does not have authority to prosecute, hence the need to refer to other agencies following its investigation.

BRR has been working with INGOs, donors through the mdF and the UN to establish mechanisms for integrating complaints management. this is to ensure that an effective response to complaints submitted by citizens to any agency is possible. the sAK unit is the key focal point for BRR. separately BRR’s integrity partners have come to agreement on sharing basic information on their contracting partners as part of an effort to enhance disclosure and transparency in the area of contracting.

the supreme Audit Agency, BpK, opened a dedicated provincial representative office in early 2006 and to date various components of the BRR have been subject to 5 separate audit and reviews by BpK. the BpK is also a member of the INtOsAI group of international supreme audit agencies that met in Vienna in 2006 to agree cooperation to enhance the sharing of information among all the key donor nation supreme audit authorities. this will provide all partners with a clearer, more comprehensive and accurate picture of the financial and programmatic situation on the ground across Aceh and Nias.

There is also a representative office the Corruption Eradication Commission, KPK, in Aceh, the first such office established by KPK outside Jakarta, and which will be strengthened in 2007.

The high profile and active presence of such agencies is a critical input towards reducing the potential corruption opportunities to the maximum extent possible.

PUBLIC INFORMATION community consultation and participation has from the outset been identified as a key element of reconstruction in Aceh and Nias. Although methodologies may differ, all agencies consider accessible public information integral to their commitment to accountability to beneficiaries and to a sustainable programme. the importance of two-way dialogue with beneficiaries was highlighted in cFAN in may 2006 and also by the tec report launched in July 2006.

BRR Staff Integrity Pact

BRR as an agency has sought to set a new standard for government and adopted a zero tolerance approach to corruption. Among BRR’s first step towards building a firm system of integrity was the introduction of an Integrity pact system. this has now been in operation for over one year. BRR recognises that having management and staff sign up to an Integrity Pact is but a first step. Implementation of, and compliance with, the pact must be enforced. progress also needs to be reviewed and submitted to public scrutiny. to this end BRR and transparency International Indonesia (tI-I) have agreed that tI-I will conduct an evaluation of the Integrity pact process within BRR. BRR has also asked that the evaluation also involve expertise from tI headquarters in Berlin.

Promoting QuAlit y, integrit y And eQuit y


the dynamic situation that is Aceh and Nias reconstruction at field level requires all players to be adaptable and fully aware of changes that are necessary for effective delivery, most important of these players being the local communities. Keeping expectations realistic and keeping beneficiaries informed of the many obstacles that affect the pace of reconstruction is integral to maintaining social cohesion and preventing disappointment within the affected communities. Agencies that have succeeded in maintaining a dialogue with the beneficiaries with whom they are working have found that given proper information and explanation, beneficiaries are willing to show patience and understanding when it comes to speed of delivery. For example, in some housing programmes, effective communications have led to greater trust from beneficiaries allowing them to make choices relating to their houses based on a solid relationship with the implementing agency involved rather than based on statistics and data alone. the demonstrations at the BRR

offices in September 2006 by a group made up of people living in barracks exemplified a lack of existing effective communications channels. this issue is currently being rectified by the formation of a UN, NGO, BRR Task Force to deal specifically with the needs of those living in barracks.

With much of the reconstruction programme yet to happen in 2007 and 2008, the importance of effective communications channels will become increasingly important. Furthermore, many programmes currently being implemented will be handed over to local partners in 2007, again emphasising the need for proper communications. Issues related to difficulties in obtaining accurate information, inconsistencies in local media reporting and lack of local language knowledge amongst the international players will all need to be overcome in order to meet the collective goals in public information and communicating with beneficiaries.

Nias Public Outreach

The Public Information Centre (PIC) for BRR Nias was established in February 2006. The PIC serves beneficiaries and local media of Nias, as a central point for BRR’s media relations, stakeholder relations and community outreach operations.

pIc conducts public outreach through community consultation village meetings, and public information distribution through a fortnightly publication and weekly interative radio programme.

Fatuhe magazine (Fatuhe means working together in Bahasa Nias) contains news and recovery data and has been published since February 2006. BRR Nias has 5000 copies of Fatuhe published fortnightly which are distributed to beneficiaries through local government, churches, mosques, and local NGOs.

since June 2006 BRR Nias has conducted a Radio talk show every Friday night in Gunung sitoli through RRI radio station. Various topics have been discussed, focusing on the Nias housing programme, policy, and complaints, traffic policy, and Q & A with the community.

Complaints Handling

BRR Nias is working to facilitate a complaints handling mechanism that links community complaints to the relevant source for resolution, be it the BRR Housing sector, a Village chief or the local police. BRR Nias is supporting local communities and local government to take responsibility for the complaints and resolution process where relevant. meanwhile, criminal or corruption issues are passed on to police or the BRR Anti-corruption Unit (sAK). to support this approach, BRR has socialized a standard procedure (sOp) for housing complaints that involves local government (the chief of Village and chief of sub-district) as well as local police

Media Relations

PIC runs a media center to facilitate local journalist with recovery news and data. The media center provides local journalists with phone/facsimile, computer and internet. Local journalists are invited to be part of the BRR socialization team as facilitators for sub-district socialization meetings.

the media center also arranges local media visits to various sectors and performs Nias media monitoring. pIc runs a website for BRR Nias activities, http://pic-brr.blogspot.com, for journalists and BRR staff.


GENDER EQUITY concerns regarding gender equity were expressed by civil society, donors and implementing partners from early 2006. While some concerns were and will be addressed by targeted initiatives, BRR’s director led the creation of a comprehensive framework to better address gender issues across the programme. the Gender Working Group, a coalition of women’s organisations, and others work with BRR in developing policy, strategy and implemention, including programming, development of gender-sensitive progress indicators and monitoring system.

Policy and StrategyBRR in September 2006 officially launched its policy and strategy paper on “promoting Gender equality in the Rehabilitation and Reconstruction process.” the paper has been developed in recognition of the need to identify effective ways to integrate gender-responsive actions in the process of rehabilitation and reconstruction and to provide a framework for agencies operating in Aceh and Nias to further enhance their efforts in working towards greater gender equity. the proposed policies and strategies encompass all sectors, providing a gender-

mainstream perspective in the formulation of policies, planning, and implementation within areas like housing, infrastructure, economic development, health, education and social, religion and institutional development.

In education and economic development, for example, equal distribution of economic resources, vocational training and scholarships are emphasised while, in the health sector, post-natal care and skilled birth attendances at village and sub-district levels are prioritised. A range of policies are proposed to support the creation of a pool of women leaders in fields like religion, technology, media and enterprise development through the introduction of capacity building programs, tailored training, language training, exposure visits and follow up forums. the paper also identifies a number of legal areas where gender issues must be supported and facilitated including domestic violence and inheritance.

conditions in temporary living centres have been hard for women and children due to lack of security, inadequate facilities, lack of privacy and limited financial resources. short term priority programmes to address these concerns, with a specific focus on widows, are required.

LOOkING AHEAD TO 2007


LOOkING AHEAD TO 2007It is 2 years since the tsunami disaster that devastated Aceh, and approaching 2 years since the earthquake that devastated Nias. the progress statistics show considerable achievements towards the reinstatement of what was lost, varying between sectors, with systems in place but with substantial implementation still to go. the delivery partners in the recovery effort have learned from two years experience and have become more conscious of their mandates, areas of interest and strengths, so are improving their delivery or shifting accordingly.

Meeting Vital NeedsIdentification of beneficiaries is critical to ensure that the needs of the most vulnerable are met and for efficient and credible allocation of housing and other resources. It is appropriate for BRR as lead government agency to act on this, and BRR are developing an identification card and registration system for launch in 2007.

Land titling has constrained the housing programme for two years now. policies and the RALAs programme were in place in 2005, but the issuance of certificates remains a bottleneck. Increased focus on land acquisition and tenure issues will help speed up the housing reconstruction process, and particular attention needs to be paid to land acquisition for renters, squatters and non-returning Idps. this will require full attention from the National Land Agency (BpN) from central government down to field level, and a frank assessment of operational capacity and commitment, along with closer coordination with district heads and local government planning agencies.

coordination within the housing sector has improved in the previous two years but housing and settlement planning still needs better integration with other sectors, particularly infrastructure and livelihoods restoration, to ensure sustainable recovery for communities. Greater emphasis will need to be placed on local government participation in the reconstruction process through increased coordination and support for local level planning processes and mechanisms.

spatial planning should have preceded implementation of all reconstruction programmes. the village planning

looking AheAd 2007


programme has exposed weaknesses amongst the major actors, with planning activities overlapping and efforts being duplicated. this has resulted in critical areas being overlooked in the first 2 years of the reconstruction programme. the BRR will need to consolidate with all the stakeholders in this critical exercise and designate geographical and technical areas of responsibility that require urgent attention.

Housing delivery must continue at full pace but with a stronger eye on quality and increased capacity for intervention and remediation. An accurate beneficiary database is crucial to providing one new house per household and avoid a surplus of housing stock or fraudulent claims. BRR must take a more decisive role in monitoring and coordination. While the housing needs in many areas such as Banda Aceh have been well addressed by donors and NGOs, numerous gaps remain, particularly in remote areas and on the islands of Nias and Simeulue. BRR needs to ensure a more efficient reallocation of resources for primary and unfulfilled reconstruction needs.

Improving the quality of housing reconstruction is a key issue for 2007 and significant investments to support quality assurance in housing construction are necessary. In addition, mitigating the risk of longer-term negative impacts requires that land policy, spatial planning guidelines, and building codes be respected. Greater attention must also be given to disaster risk reduction and potential environmental hazards in the planning, design and construction of housing.

Providing Social Services the coming year is crucial in ensuring the successful transfer of assets to government agencies with the capacity to manage and maintain them and offer the appropriate range and standard of services to communities. To support this, specific initiatives are needed to develop local government capacity.

In education, much of the focus to date has remained on school reconstruction, and there will need to be greater focus on addressing the quality of education in 2007. there has been progress in improving access to education, but improving quality of education is a long and slow process, and it requires much institutional capacity strengthening, as well as community participation and social surveillance. effective implementation of the Aceh Five-Year education strategic plan should establish excellent foundations for the continuous improvement and development in education.

In health, activities in 2005 were primarily focused on the provision of adequate emergency health services, while in 2006 activities have focused more on the construction of health facilities and infrastructure as well as preparations for the development of human resources in the health sector. effort in 2007 will continue to develop the human resource base and strengthen health system management by providing and determining standards of health services, which cover posyandu, village maternity posts, auxiliary community health centres, community health centres, hospitals, health education and training agencies as well as health programme innovations by applying local-wisdom-based services. A concern for the sector is also how to shift from the emphasis on curative services towards preventative health services and programmes.

Managing Disaster Risk and Environmental ImpactA disaster Risk Reduction policy and framework will need to be ratified and socialised amongst all reconstruction partners. this process must emphasise and describe the inherent role of disaster risk reduction in “building back better” and in underwriting and safeguarding the extensive human and financial investment that has characterised the reconstruction so far. early warning systems will need to be expanded to as many vulnerable areas as possible.

the BRRs proposed strategic environmental Framework should be aligned with disaster Risk Reduction strategies and both be supplemented with appropriate rapid appraisals that can highlight the overall opportunities and risks of the recovery effort portfolio. the current procedure for assessing expected environmental impacts of reconstruction projects is regarded as deficient, one bottleneck being the limited resources and capacity of local government and service providers in Aceh to carry out the required environmental impact assessments (eIAs/AmdALs). local government capacity must be improved significantly and at short notice; due to the transient character of this demand, possibly taking into account additional short-term external help. As an important tool for environmental management, environmental monitoring capacities in Aceh must be installed or improved. this will require complementing some laboratory equipment, a capacity development programme and the installation of a GIs based environmental information system.


Establishing Infrastructurethe IRep and IRFF programmes are poised to offer the planning and implementation framework for a solid infrastructure base for longer-term development that goes beyond the needs of reconstruction. the programmes do not cover all geographical areas, but offers a model to be used throughout, with an appropriate vehicle for funding and harnessing international high-level expertise. However, building up the government capacity to manage utilities and deliver services still requires a stable political and administrative base and supportive policy framework. the scenarios in Aceh and Nias offer potential for innovation in means and quality of delivery to all members of communities. that is likely to require significant effort to create effective and accountable partnerships between government, donors and private sector.

Improving LivelihoodsLivelihoods for the vast majority of people in Aceh and Nias remain vulnerable and 2007 must improve the short-term opportunities available to people, particularly the poor and to combat the increasing cost of living and inflation. Addressing rural poverty, particularly for women, will be one of the long-term challenges facing Aceh and Nias. the stark decrease in growth in agriculture in 2005 was accompanied by a sharp increase in poverty. there is still a huge need for investment in agriculture, fisheries and other rural livelihood options. Reform within the fisheries and agriculture sectors offers excellent chances for poverty reduction and economic development through developing higher value added activity. programmes have been formulated for 2007-2011, aimed at immediate impact in critical areas of agriculture and fisheries, but these still require substantial funding.

provincial and Local Government must urgently develop and present a common vision about the economic development of the region. the current situation of high import levels in Aceh, the weak enabling base in Nias, and the level of the reconstruction funds being spent on services and invested is not sustainable. Interventions to address the long-term economic impacts of the tsunami and the reconstruction process will need to begin in 2007.

Managing the ReconstructionBRR and partners will need to be realistic in the goals they set for 2007 and avoid setting targets which may not be possible to achieve. Victims of the disaster have repeatedly expressed that realistic deadlines are more acceptable so that they can better plan their own futures. the current year showed that the housing target of 78,000 units in 2006 was not achieved due to coordination and operational constraints. continued and greater cooperation between all partners and the BRR will hopefully reduce bottlenecks and find ways to overcome them as a joint effort. The local government at provincial and district level will need to play an increasingly important role in the planning and design of reconstruction projects, but Joint Secretariats are widely perceived as an appropriate mechanism.

Where commitments were made but unfulfilled. BRR as leader in the reconstruction process will need to actively identify areas where progress is not visible and then recommend a decisive course of action in the interests of all partners.

Information management is still challenging and the enormous scale of actors, projects, and assistance requirements make it incredibly difficult to provide an accurate and consistent picture of the recovery efforts to decision-makers and implementers. However, as we begin 2007 the need to demonstrate real progress and results becomes more relevant than ever. A shift towards more results-based monitoring, including qualitative as well as quantitative information, and effective data collection on cross-cutting issues is required to help demonstrate the outcomes and potential longer-term impacts of reconstruction and rehabilitation. the need for a beneficiary database as accurate as possible is a essential to ensure that no victim receives more than its legitimate entitlement. Gender-related concerns must be integrated into the reconstruction and rehabilitation activities and programmes of all agencies operating in Aceh and Nias. to date, gender disaggregated data of target beneficiaries is not available which hampers efforts to ensure systematic gender-sensitive planning, budgeting and monitoring which reflects the ongoing need to strengthen information management systems. BRR must oversee this effort but all international agencies and NGOs will need to make a conscientious effort to help create a reliable information system.

the challenge for the coming year for BRR will be to achieve the right balance between fulfilling the mandate of enhancing the capacity and capability of local governments to assume greater coordination and

looking AheAd 2007


planning role, and the need to demonstrate significant and measurable progress in the overall reconstruction program. BRR will need to continue to build the capacity of its regional offices, strengthening its coordination function and promoting an area-based collaborative approach with local government.

The capacity of the BRR project implementation units, Satker, must be increased as quickly as possible. the last two years has seen the Satker stretched to the limit with too many projects and insufficient staff numbers which directly impacted the timely completion of the task and drastically affected the quality of the final product, along with drawing the resources of BRR staff into resolving the government-funded projects operational issues when they could have devoted those resources to higher-level facilitation. A greater number of field inspectors who are well trained and motivated will be essential to improve quality standards and meet completion deadlines.

The Scenario in 2007the effective transition from the relief phase to ensuring longer-term development outcomes in the recovery process will be well underway in 2007. coordination and open-sharing of information between all partners is pivotal. the challenge for 2007 will be the coordinated implementation of policies in a way that seeks to optimise our delivery, not merely standardise our procedures. As the programme aims towards sustainable development goals, the programme becomes more complex and the division between post-conflict and post-disaster will be less distinct. Working together and aligning competencies and comparative advantage of each implementing agency, and planning together for optimal sharing and sequencing of work will help support successful recovery of communities and livelihoods.

the picture that is emerging for 2007 is of complementary but increasingly clear streams: One continuing to focus on achievement of reconstruction targets, getting the houses and infrastructure constructed at community level, ensuring restoration of basic livelihoods, and essential community services such as schools. the second stream will focus on longer-term development, capitalising on the reconstruction effort in the most strategic way possible, to create a basis and supporting infrastructure for economic growth, with the government and social processes required to support sustainable development.

A number of NGOs have expressed that they have already passed the peak of their reconstruction activity and are looking at some form of exit during 2007.

Others are considering transitional strategies from/to particular geographical or programme areas. the mdF and others are keen to look longer-term towards economic development and are taking keen interest in an economic development strategy. donors and partners are promoting gender, environment, and disaster risk reduction as cross-cutting themes that must be addressed for sustainable development. BRR will articulate its strategy for handover to local government and exit in 2009. Where partners have come together, such as at the coordination Forum for Aceh and Nias (cFAN), the discussion has ranged from how we collectively meet those targets at the scale required, but also how we are moving from emergency and recovery towards more development oriented goals.

Two years on, that the stakeholders show sufficient confidence in progress so far to debate the longer term scenario is both a sign of achievement and a sign of the pace and scale of change that continues to mark this recovery programme. In 2007 it will be beneficial to articulate as soon and as clearly as possible what we collectively want to achieve in terms of development. the year could be pivotal in setting a longer term agenda, but equally this will hinge on maintaining the commitment and momentum that has been in place through 2006 in overcoming the still considerable challenges of immediate reconstruction.

the most important group in considering the success and potential of recovery is the community at large. For the longer-term development scenario to be considered, articulated and be plausible, the views and voices of the people cannot be overlooked, and their suggestions and requests play a critical role in “building back better”. experience has shown that when communities have access to proper information combined with their local knowledge of the workplace and the living environment, their suggestions are extremely meaningful.

economic and social development, to accompany physical rebuilding, will not only help revitalise a province devastated by one of the greatest natural disasters ever known but will also help maintain the existing peace accord. the coming year will be a successful step on the path to recovery if there is a combination of a continued collective rebuilding effort with vital engagement in what the BRR, implementing and donors partners, the local government, communities and individuals aim to achieve in the years to come.


ANNEXES


ABBREVIATIONS

Acted Agency for technical cooperation and development (Agence d’Aide à la coopération technique et au développement)

AdB Asian development Bank

AIpRd Australia Indonesia partnership for Reconstruction and development

AmdAL environmental Impact Assessment (Analisa mengenai dampak Lingkungan)

Amm Aceh monitoring mission

ApBd Government of Indonesia’s Regional Annual Budget (Anggaran Pendapatan Belanja Daerah)

ApBN Government of Indonesia’s National Annual Budget (Anggaran Pendapatan Belanja Negara)

ApBN-p Government of Indonesia’s National Annual Budget Extension (Anggaran Pendapatan Belanja Negara Perpanjangan)

AusAId Australian Agency for International development

BAKORNAs pBp National coordinating Board for disaster management (Badan Koordinasi Nasional penanggulangan Bencana dan penanganan pengungsi)

BAKOsURtANAL National coordinating Agency for surveys and mapping (Badan Koordinasi survei dan pemetaan Nasional)

BApedALdA district environmental Impact management Agency (Badan pengendalian dampak Lingkungan daerah)

Bapel executing Agency of BRR (Badan pelaksana)

BAppeNAs National development planning Board (Badan perencanaan pembangunan Nasional)

BKd Agency for the Regional civil services (Badan Kepegawaian daerah)

BpK Agency for Financial Audit (Badan pemeriksa Keuangan)

BpKp Financial and development supervisory Agency (Badan pengawasan Keuangan dan pembangunan)

BpN National Land Agency (Badan pertanahan Nasional)

BppK Resettlement development Assistance (Bantuan pembangunan permukiman Kembali)

Bps Bureau of statistics Indonesia (Biro pusat statistik)

BRR Agency for the Rehabilitation and Reconstruction of Aceh-Nias (Badan Rehabilitasi dan Rekonstruksi NAd-Nias)

cFAN coordination Forum for Aceh and Nias

cIdA canadian International development Agency

coHA cessation of Hostilities Agreement

cpI consumer price Index

cRs catholic Relief services

csO civil society Organization

ddR disarmament demobilization and Reintegration

dfId UK department For International development

dinas provincial Government management or implementing unit

dIpA Issuance of spending authority (daftar Isian proyek Anggaran)

dIsNAKeRtRANs Regional Office of Manpower and Transmigration Department (Dinas Tenaga Kerja dan Transmigrasi)

ec european commission

eIA environmental Impact Assessment

emIs education management Information system

eRtR emergency Response and transitional Recovery

etesp Earthquake and Tsunami Emergency Support Project

eU european Union

FAO Food and Agriculture Organization

GAm Free Aceh movement (Gerakan Aceh merdeka)

Gdp Gross domestic product

GIs Geographic Information system

GOI Government of Indonesia (pemerintah Republik Indonesia)

GtZ German cooperation Agency (Gesellschaft fuer technische Zusammenarbeit)

IcW Indonesia corruption Watch


Idp Internally displaced person

IdR Indonesian Rupiah

IFRc International Federation of Red cross and Red crescent societies

ILO International Labor Organization

Imc International medical corps.

IOm International Organization for migration

IRc International Rescue committee

IRd International Relief and development

IRep Infrastructure Reconstruction enabling program

JIcA Japan International cooperation Agency

JIcs Japan International cooperation system

Kdp Kecamatan development program

KeppRes presidential decree (Keputusan presiden)

Kerap An elected local committee that handles and monitors reconstruction funds under the Urban Poverty Project

KfW German development Bank (Kreditanstalt fuer Wiederaufbau)

KKN corruption, collusion and Nepotism (Korupsi, Kolusi dan Nepotisme)

KpK corruption eradication commission (Komite pemberantasan Korupsi)

Lcs Logistics coordination service

LdR Loan and deposit Ratio

LKm micro-Financing Institutions (Lembaga Keuangan mikro)

Lsm lembaga swadaya masyarakat

mdF multi-donor Fund (for Aceh and North sumatra), formerly known as multi-donor trust Fund (mdtF)

mFI micro Finance Institutions

mOU memorandum of Understanding

msF medecins sans Frontieres

mtI Indonesian transparency society (masyarkat transparansi Indonesia)

NAd Nanggroe Aceh darussalam

NGO Non-Governmental Organization (Lembaga swadaya masyarakat)

NIsm Nias Islands stakeholders meeting

NpL Non-performing Loan

Ose United Nations Office of the Special Envoy for Tsunami Recovery

pdAm Government-Owned Water enterprises (perusahaan daerah Air minum)

peRdA Local government regulation (peraturan daerah, ‘Qanun’ - arabic term )

peRpRes presidential Regulation (peraturan presiden)

perpu Regulation in Lieu of Law (peraturan pemerintah pengganti Undang Undang)

pHO Public Health Office

pIc public Information centre

pLN the National electricity company (perusahaan Listrik Negara)

posko coordination post (pos Koordinasi)

pQAm procurement Quality Assurance and monitoring

psU procurement services Unit

puskesmas Health center at sub-district Level (pusat Kesehatan masyarakat)

QA quality assurance

RALAs Restoration of Aceh Land Administration system

RANd Recovery Aceh-Nias database

RcRc Red cross/Red crescent

RdA Recommended daily Allowance

sAK Anti-corruption Unit (satuan Anti Korupsi)

sAKeRNAs Labor Force Survey (Survey Tenaga Kerja Nasional)

satker Work Units (Satuan Kerja)


scF save the children Fund

sd primary school

sdc swiss Agency for development and cooperation

sdc sea defence consultants

sIm centre spatial Information and mapping centre (pusat Informasi spasial dan pemetaan)

sLtA Senior High Schools (Sekolah Lanjutan Tingkat Atas)

smA public High school (sekolah menengah Atas)

sme small to medium enterprise (Usaha Kecil menengah)

sOp standard Operating procedure

spAdA Support for Poor and Disadvantaged Areas project

spI Internal supervision Unit (satuan pengawas Internal)

sUmUt North sumatra (sumatera Utara)

tec tsunami evaluation coalition

teWs tsunami early Warning system

tII transparency International Indonesia

tLc temporary living centre

tNI Indonesian military (tentara Nasional Indonesia)

tRIAms tsunami Recovery Impact Assessment and monitoring system

tspA temporary shelter plan of Action

UN United Nations (perserikatan Bangsa-Bangsa)

UNdp United Nations development programme

UNep United Nations environment programme

UNHcR United Nations High commissioner for Refugees

UNIceF United Nations children’s Fund

UNIFem United Nations development Fund for Women

UNIms United Nations Information management service

UNORc Office of the United Nations Recovery Coordinator for Aceh and Nias

UNORc, IAs Office of the United Nations Recovery Coordinator, Information Analysis Section

Upp Urban Poverty Project

Upp development service Unit (Unit pelayanan pengembangan)

UsAId United states Agency for International development

WFp World Food programme

WHO World Health Organisation

WWF World Wildlife Fund for Nature

YIpd center for Local Government Innovation (Yayasan Inovasi pemerintahan daerah)


GLOSSARY

English indonesian

accountability pertanggungjawaban

Advisory Board Dewan Pengarah

agency badan

area daerah, kawasan

barat west

basic commodity komoditi andalan

billion miliar

board dewan

build back better membangun menjadi lebih baik

building codes ketentuan-ketentuan tentang bangunan

bureau biro

capacity building pengembangan kemampuan

certification sertifikasi

chief of sub-district Camat

city/town kota

civil society masyarakat madani, sipil

complaints handling Penanganan Keluhan

corruption eradication commission

Komisi Pemberantasan Korupsi

cross-cutting lintas sektoral

customs, (traditional) law adat

damage and loss assessment penilaian kerusakan dan kerugian

database pangkalan data

delivery (of work) pelaksanaan (pekerjaan)

delivery unit satuan kerja

district kabupaten

district head bupati

emergency response tanggap darurat

escape route jalan untuk menyelamatkan diri

fish-ponds tambak

gender equity kesetaraan gender

government authority instansi pemerintah

Government Regulation Peraturan Pemerintah (PP)

head of sub-district camat

internally displaced people pengungsi

Islamic law Syariah

Islamic place of prayer in Aceh

Ach. meunasah

Islamic school Pesantren

Islamic theologian, scholar ulama

joint-land titling sertifikat tanah gabungan

livelihood mata pencaharian

master plan Rencana Induk

English indonesian

multi donor Fund dana multi donor

National Land Agency Badan Pertanahan Nasional

off budget di luar anggaran

on budget dalam anggaran

Oversight Board Dewan Pengawas

procurement Quality Assurance and monitoring

Jaminan dan Pemantauan Mutu Pengadaan

procurement service Unit Satuan Layanan Pengadaan

promoting Gender equality in the Rehabilitation and Reconstruction process

Memajukan Kesetaraan Gender dalam Proses Rehabilitasi dan Rekonstruksi

public Financial management Manajemen Keuangan Pemerintah

public Information centre Pusat Informasi Publik

regulation qanun (arabic term)

Rehabilitation and Reconstruction Agency for the Region and community of the province of Aceh and the Nias Islands in the province of North sumatra

Badan Rehabilitasi dan Rekonstruksi Wilayah dan Kehidupan Masyarakat Provinsi Nanggroe Aceh Darussalam dan Kepulauan Nias Provinsi Sumatera Utara

Restoration of Aceh Land Administration system

Pemulihan Sistem Administrasi Tanah di Aceh

settlement (Ach. administrative division larger than a village)

kemukiman

settlement, head of mukim, imuem mukim

sub-district kecamatan

sub-district head camat

sustainable development pembangunan yang berkelanjutan

temporary living centres tempat tinggal sementara

temporary shelter hunian sementara

temporary shelter plan of Action

Rencana Tindak Hunian Sementara

traditional fishing community leader

Ach. panglima laot

transitional housing perumahan transisi

trillion triliun

village desa, gampong, kelurahan

Village chief Kepala Desa

village head Ach. keucik


FINANCIAL METHODOLOGICAL NOTE

Definitions of Needs

the damage & Loss Assessment estimated the total cost to replace damages and losses caused by disaster (replacement value). total damages and Losses Aceh and Nias were estimated at Usd 4.9 billion, and after being adjusted for inflation the total is 6 USD. Billion.1

core minimum Needs are a sub-set of the damage and Loss Assessment and of the master plan. core Minimum Needs are defined as (i) full replacement of all public sector damage, (ii) financing of private sector needs such a housing or agriculture up to a limit as determined in the Master Plan, (iii) partial financing of environmental damage, which can only be addressed to very limited degree by external interventions, and (iv) inflation adjustment given the recent price trends.

key Parameters

Many projects will take more than one year to complete or less than one year. The database of funds from donors and NGOs contains single and multi year projects.

On- and Off-budget. the tables in this report covered both On- and Off-budget data. donors’ funds channeled through the Government are defined as “On budget”. “Off budget” funds refer to projects funded and implemented external to the Government.

Donor disbursements are defined as those funds that have been spent on projects by donors. This information is directly collected from the major donors.

NGO disbursements refer to the funds that had been spent on projects directly by NGOs or an executing agency. this data is gathered from direct sources for the top 20 NGOs and Recovery Aceh Nias (RAN) database for smaller NGOs.

GOI disbursement are central Government disbursements, consisting of BRR funds. this data has been provided by BRR’s Finance Unit

Double Counting. Funding figures are vulnerable to double counting due to the complexity of aid funds channeled, thus the funds are calculated based on the executing agency rather than the financing source. This may lead to underestimation of bilateral/multilateral donor funds, and an overestimation of NGO funds, or vice versa.

Sectoral Analysis. The financing figures are classified into four categories: social sector, infrastructure, productive sectors and cross sectoral.

1 Damage and Loss Assessment, January 2005 IOM

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(%)

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(8.1

)

Sour

ce: B

PS (N

ov, 2

006)

Band

a Ac

eh o

nly


2 YEAR PROGRESS DATAIMPROVING LIVELIHOODS

Number of Person Employed by Different Sectors for NAD (2006)

No Sector Male Female Total Percentage

1 Agriculture 577,727 288,607 866,334 56

2 mining 7,670 0 7,670 1

3 manufacture 40,646 31,851 72,497 5

4 electricity, gas and water 4,724 598 5,322 0

5 construction 72,901 1,501 74,402 5

6 trade 141,408 74,260 215,668 14

7 transportation and communication 67,517 1,561 69,078 4

8 Finance 2,798 545 3,343 0

9 services 115,680 108,500 224,180 15

Total 1,031,071 507,423 1,538,494 100

Source: BPS SAKERNAS, National (February, 2006) Province only

Export by Main Commodity in Aceh (2005)

No Commodities Volume (Kg) Value (US$)

1 dairy produce 54 6,750

2 edible fruits and nuts 20,000 1,842

3 coffee, tea, mate and spices 38,090 26,552

4 mineral fuels, mineral oil products 5,167,063,912 2,035,162,772

5 Inorganic chemicals 42,730,000 10,274,225

6 Fertilizers 91,000,000 22,334,170

7 plastics and articles thereof 1,400,077 357,923

8 Raw hides and skins and leather 4 291

9 Wood and articles of wood 3,084,803 1,564,002

10 Articles of iron and steel 10 156,532

11 elect. machinery, sound rec., tv etc 21,092 25,708

12 Ships, boat, and floating structures 2,400,000 2,400,000

13 Furniture, bedding, lamps, illum, signs 6,324 4,493

Total 5,307,764,303 2,072,415,260

Source: BPS_Aceh in Figures (2005)

Gross Domestic Regional Product (GDRP) at Current Price by Industrial Origin (2005)

No Industrial Origin Value (in Billion rupiah)

1 Agriculture 11,669.91

2 mining 11,513.89

3 manufacturing Industries 10,242.81

4 electricity and Water supply 114.38

5 Building and construction 1,323.72

6 Hotels and Restaurants 6,246.67

7 transportation and communication 3,359.97

8 Banking and Other Financial Intermediaries 1,044.36

9 services 5,583.54

GDRP 51,117.34

GDRP (Non Oil and Gas) 31,252.09

Source: BPS_Aceh in Figures (2005)

Documents

Aceh and Nias Two Years After the Tsunami - UNISDR · Aceh And niAs two yeArs After the tsunAmi On december 26, 2004, the most powerful earthquake in 40 years struck in the Indian