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Aceh Public Expenditure Analysis Spending for Reconstruction and Poverty Reduction

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Aceh Public Expenditure Analysis Spending for Reconstruction and Poverty Reduction 38417 ACEH PUBLIC Public Disclosure Authorized EXPENDITURE ANALYSIS SPENDING FOR RECONSTRUCTION AND POVERTY REDUCTION Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized THE WORLD BANK OFFICE JAKARTA Jakarta Stock Exchange Building Tower II/12th Fl. Jl. Jend. Sudirman Kav. 52-53 Jakarta 12910 Tel: (6221) 5299-3000 Fax: (6221) 5299-3111 Website: http://www.worldbank.org/id THE WORLD BANK 1818 H Street N.W. Washington, D.C. 20433, U.S.A. Tel: (202) 458-1876 Fax: (202) 522-1557/1560 Email: [email protected] Website: http://www.worldbank.org ACEH PUBLIC EXPENDITURE ANALYSIS SPENDING FOR RECONSTRUCTION AND POVERTY REDUCTION ACEH PUBLIC EXPENDITURE ANALYSIS SPENDING FOR RECONSTRUCTION AND POVERTY REDUCTION Acknowledgments This Aceh Public Expenditure Analysis (APEA) is a collaboration between the World Bank and four Acehnese universities: Syiah Kuala University and IAIN Ar-Raniry (Banda Aceh), Malikul Saleh University, and Politeknik University (Lhokseumawe). This report was prepared by a core team led by Oleksiy Ivaschenko, Ahya Ihsan, and Enrique Blanco Armas, together with Cut Dian Rahmi and Eleonora Suk Mei Tan. The core team also included Patrick Barron, Cliff Burkley, John Cameron, Taufi q C. Dawood, Guy Janssen, Rehan Kausar, Harry Masyrafah, Sylvia Njotomihardjo, Peter Rooney, and Chairani Triasdewi. Syamsul Rizal (Syiah Kuala University) coordinated local partners, and Djakfar Ahmad provided outreach to members of provincial and local governments. Wolfgang Fengler supervised the APEA process and production of this report. Andrew Steer (Country Director), together with Victor Bottini (Resident Representative in Aceh), Joel Hellman (Chief Governance Advisor and Aceh Coordinator), and Scott Guggenheim (Lead Social Development Specialist), provided overall guidance throughout the process. The larger team contributing to the preparation of this report consisted of Nasruddin Daud and Ir. Sufi i; valuable comments were provided by Owen Podger; from the World Bank: Francisco Javier Arze del Granado, Andre Bald, Maulina Cahyaningrum, Ahmad Zaki Fahmi, Alicia J. Hetzner, Indra Irnawan, Bambang Suharnoko, Juliana Wilson, Bastian Zaini, Sabine Joukes; and the following university teams: Syiah Kuala University (Banda Aceh). Razali Abdullah, Zinatul Hayati, Teuku M. Iqbalsyah, Fadrial Karmil, Yahya Kobat, Jeliteng Pribadi, Yanis Rinaldi, Agus Sabti, Yunus Usman, and Teuku Zulham IAIN Ar-Raniry (Banda Aceh). Fakhri Yacob Malikul Saleh University (Lhokseumawe). Wahyudin Albra, Jullimursyida Ganto, and Andria Zulfa Polytechnic Lhokseumawe (Lhokseumawe). Riswandi and Indra Widjaya Photographs taken by Kristin Thompson except ‘Polindes in Kecamatan Padang Tiji, Kab. Pidie’ by World Bank staff . The APBD (regional budget) data was gathered and processed by Nova Idea, Sidra Muntahari, Ridwan Nurdin, Cut Yenizar, Miftachuddin, and Akhiruddin (GeRAK). The Public Financial Management (PFM) Survey in Aceh was implemented by the the Local Government Support Program (LGSP) (USAID) team led by Philip Schwehm and Andrew Urban. Peter Rooney coordinated this work for the World Bank. The Governance and Decentralization Survey (GDS) in 10 districts in Aceh was implemented by the World Bank and coordinated by Daan Pattinasarany. Peer reviewers are Islahuddin and Raja Masbar (Syiah Kuala University); and John Clark and Kai Kaiser (World Bank). Last, but not least, the team thanks the acting Governor of Aceh Government, Dr. Ir. Mustafa Abubakar, M.Si, his staff , as well as staff at the Rehabilitation and Reconstruction Agency (BRR), led by Amin Subekti for their support of the APEA initiative. The team of advisors to the Governor as well as staff of the BRR provided valuable comments during the process. Financial support was provided by the Decentralization Support Facility and the Singapore Trust Fund. iii ACEH PUBLIC EXPENDITURE ANALYSIS SPENDING FOR RECONSTRUCTION AND POVERTY REDUCTION Acronyms, Abbreviations, and Non-English Terms Adat Social custom or tradition ADB Asian Development Bank AMDAL (Analisis Mengenai Dampak Lingkungan) Environment Impact Permit AMM Aceh Monitoring Mission APBD (Anggaran Pendapatan dan Belanja Daerah) Regional Government Budget APBN (Anggaran Pendapatan dan Belanja Negara) State Budget APEA Aceh Public Expenditure Analysis ARI Acute Respiratory Infection AusAid Australian Agency for International Development Bappeda (Badan Perencanaan Pembangunan Daerah) Regional Development Planning Agency Bappenas (Badan Perencanaan Pembangunan Nasional) National Development Planning Agency BAKORNAS (Badan Koordinasi Nasional) National Disaster Management Board BCG Bacillus of Calmette and Guerin BKN (Badan Kepegawaian Negara) National Personnel Agency BOS (Biaya Operasional Sekolah) Block grant from central government to schools to cover primary and junior school operational costs BPD (Bank Pembangunan Daerah) regional Development Bank BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) Land and Building Transfer Fee BPK (Badan Pemeriksa Keuangan) National Auditing Agency BPN (Badan Pertanahan Nasional) National Land Agency BPR (Bank Perkreditan Rakyat) Rural Credit Bank BPS-SK (Statistik Keuangan) Financial statistics from Indonesian National Statistics Offi ce BQ (Baitul Qiradh) Syariah Financial Cooperative BRA (Badan Reintegasi Aceh) Reintegration Agency for Aceh BRR (Badan Rehabilitasi dan Rekonstruksi) Rehabilitation and Reconstruction Agency Bupati Head of District Camat Head of Subdistrict CDA Community-driven adjudication CDD Community-driven development CFAN Coordination Forum for Aceh and Nias CoHA Cessation of Hostilities Framework Agreement CoSA Committee on Security Arrangements CPI Consumer price index CSO Civil society organization Dana otsus (Dana Otonomi Khusus) special autonomy fund DAK (Dana Alokasi Khusus) earmarked grant D&L Damage and Loss DAU (Dana Alokasi Umum) general allocation grants DBH Revenue-Sharing DBHDR Revenue-Sharing Reforestation Fund DDR Disarmament Demobilization and Reintegration iv ACEH PUBLIC EXPENDITURE ANALYSIS SPENDING FOR RECONSTRUCTION AND POVERTY REDUCTION Decon Deconcentration funds Desa Village Dinas Regional Sector Offi ce DIPA (Daftar Isian Proyek Anggaran) issuance of spending authority DOM (Daerah Operasi Militer) military operational area DPRD (Dewan Perwakilan Rakyat Daerah) Provincial House of Representatives (regional parliaments) DPT3 Combined vaccination against diphtheria: pertussis-whooping cough-tetanus DSCR Debt Service Coverage Ratio EEZ Exclusive Economic Zone ERTR Emergency Response and Transitional Recovery ETESP Earthquake and Tsunami Emergency Support Project FGD Focus Group Discussions FIRM Financial Intermediation and Mobilization FM Financial Management GAM (Gerakan Aceh Merdeka) Free Aceh Movement GCF Gross Capital Formation GDP Gross Domestic Product GDS Governance and Decentralization Survey GER Gross Enrollment Rate GeRAK (Gerakan Rakyat Anti Korupsi) People’s Movement for Anti Corruption GOI Government of Indonesia GRDP Gross Regional Domestic Product ha Hectare(s) HDI Human Development Index HH Households IAIN (Institut Agama Islam Negeri) Public Islamic Institute IDHS Indonesian Demographic and Health Survey IDP Internally displaced person ILO International Labour Organisation IMR Infant Mortality Rate INPRES (Instruksi Presiden) Presidential Instruction IOM International Organization for Migration IPTEK (Ilmu Pengetahuan dan Teknologi) Science and Technology IRD International Relief and Development JPK–Gakin (Jaminan Pemeliharaan Kesehatan-Keluarga Miskin) government health insurance for poor households JPK-MM (Jaminan Pemeliharaan Kesehatan-Masyarakat Miskin) government health insurance for the poor Kabupaten District (regency) KDK (Komite Darurat Kemiskinan) emergency humanitarian committee Kecamatan Subdistrict Kelurahan Urban Village Kepmen (Keputusan Menteri) Ministerial Decree v ACEH PUBLIC EXPENDITURE ANALYSIS SPENDING FOR RECONSTRUCTION AND POVERTY REDUCTION Keppres (Keputusan Presiden) Presidential Decision KERAP Elected local committee that is in charge of and monitors reconstruction Kesbanglimas (Kesatuan Kebangsaan dan Perlindungan Masyarakat) regional agency in charge of social and political life in the community Km Kilometer Kota City (urban district) LG Local Government LGSP Local Government Support Program LOGA Law on Government in Aceh M&E Monitoring and Evaluation MCFD Million Cubic Feet per Day MDF Multi-Donor Fund Mesjid Mosque MoE Ministry of Environment MoF Ministry of Finance MoNE Ministry of National Education MoRA Ministry of Religious Aff airs MoU Memorandum of Understanding MPW Ministry of Public Works NAD (Nangroe Aceh Darussalam) Province of Aceh (formal name) NBFI Nonbank fi nancial institution NGO Nongovernmental Organization O&M operations and maintenance OCHA Offi ce for the Coordinator of Humanitarian Aff airs PAD (Pendapatan Asli Daerah) Own-source revenue PBB (Pajak Bumi dan Bangunan) Land and Building Tax PDAM (Perusahaan Daerah Air Minum) Local water supply enterprise PEACH Public Expenditure Analysis Capacity Harmonization Perpu (Peraturan Pemerintah Penggati Undang-undang) regulation in lieu of law Perda (Peraturan Daerah) Regional Regulation Pesantren Islamic school PFM Public Financial Management PLN (Perusahaan Listrik Negara) the national electricity company PMU Program Management Unit PODES (Potensi Desa) BPS village potential statistics Polindes (Pos Persalinan Desa) village maternity post Posko (Pos Kordinasi) coordination post PPS Proportional to Size Puskesmas (Pusat
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