Aceh and Nias Two Years After the Tsunami

Home , Aceh, Banyak Islands, Meulaboh, Nias, Weh Island

ADVANCE RELEASE VERSION

2006 PROGRESS REPORT

BRR and partners December 2006 PRESIDENT OF THE REPUBLIC OF INDONESIA

Jakarta, December 2006 PRESIDENT OF THE REPUBLIC OF INDONESIA

2006 Progress Report ii United Nations Nations Unies Office 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

Aceh and nias two years after the tsunami iii Acknowledgements

This 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 Harvey CARE International Melanie Brooks DHV Bram van der Boon, Dick Jansen MDF Sabine Joukes Save The Children Jon Bugge UNDP Robin Willison UN HABITAT Bruno Dercon UNEP John Carstensen UNICEF Mervyn Fletcher, Sayo Aoki UNORC Satoko Nakagawa, Steve Ray, Ferry Wangsasaputra, Anissa Elok, Hadi Mahrina, Muhammad Nasir WHO Tomasz Starega World Bank Andre Bald, Enrique Blanco Armas, Ahya Ihsan, Faisal Siddik, Harry Masyrafah, Jock McKeon, Dewi Ratnasari World 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.

2006 Progress Report iv Table of Contents

PREFACE 7 Funding the Recovery 67 Financing in 2006 68 EXECUTIVE SUMMARY 9 Sectoral Allocations and Gaps 69 Focus on Aceh 17 Disbursements and Allocations 71 Focus on Nias 21 The Challenges Ahead 72

Meeting Vital Needs 27 Managing the Protecting the Most Vulnerable 28 reconstruction 75 Housing and Settlements 29 The Regional Programme 76 Land and Spatial Planning 32 Coordination with Stakeholders 78 Information Management 78 Providing Social Services 35 Tim Terpadu External Services Team 79 Institutional Development 36 Logistics, Supply Chain and Shipping Services 80 Child Protection 37 Education 38 Promoting Quality, Integrity and Equity 83 Health 40 Quality Assurance 84 Managing Disaster Risk and Integrity and Counter-Corruption 85 The Environment 43 Public Information 86 Disaster Risk Reduction 44 Gender Equity 88 Managing Environmental impact 46 Looking Ahead to 2007 89 Establishing Infrastructure 51 ANNEXES 95 Enabling Infrastructure 52 Abbreviations 96 Water Supply 54 Glossary 99 Sanitation 54 Financial Methodological Note 100 Irrigation 55 2 Year Progress Data 101 Power 55

Improving Livelihoods 57 Aceh’s Economy 58 Private Sector Development 59 Rural Livelihoods 62

Aceh and nias two years after the tsunami

PREFACE

On December 26, 2004, the most powerful earthquake The Government of Indonesia anticipated the in 40 years struck in the Indian Ocean, 150 km off the reconstruction and rehabilitation phase that was to coast of the Indonesian province of Aceh. Of the 12 follow the relief phase, initiated a master plan and nations hit by the resulting tsunami, Indonesia suffered established the Reconstruction and Rehabilitation the greatest: 130,000 people were confirmed dead and Agency of Aceh and Nias (BRR). This agency, established 37,000 missing. An additional 500,000 were displaced. The by Presidential decree, headquartered in Banda Aceh, physical damage was inconceivable; 800 km of coastline was tasked to restore livelihoods and infrastructure and was devastated, entire villages were obliterated. strengthen communities in Aceh and Nias by directing a coordinated, community-driven reconstruction and On March 28, 2005, another tragedy struck when an development programme. earthquake hit off the coast of Sumatra, near the island The joint effort so far in reconstructing Aceh and Nias has of Nias. Nearly 900 people died as a result, the majority been an enormous undertaking. The initial relief efforts of buildings and infrastructure suffered damage, leaving of 2005 were followed by extensive reconstruction some 40,000 displaced. works that continue to date, and that have had to The Aceh and Nias disasters wrought massive damage overcome significant obstacles both related to the sheer to infrastructure, schools, hospitals, the environment the extent of the damage and also to the scale and speed economy and devastated communities. Initial estimates of response. This report describes the accomplishments to rebuild Aceh and Nias came in at USD 4.9 billion, of the many partner agencies – international, national which adjusted for current levels of inflation is the and local stakeholders - that have worked so hard from equivalent of USD 6.1 billion: the human costs can never through 2005 to 2006 to rebuild Aceh and Nias. 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.

Aceh and nias two years after the tsunami

EXECUTIVE SUMMARY

Meeting Vital Needs restore livelihoods and reconstruct housing. Land titling and spatial planning processes have continued at steady Activities in 2006 reflected the successful pace through 2006 but have not accelerated as much as and appropriate transition from relief was hoped at the end of 2005 and greater intervention to recovery and reconstruction. Specific is required. The BRR and BPN joint land-titling policy is a interventions continued to help meet the needs of the strategically important initiative that has been developed most vulnerable: The Temporary Shelter Plan of Action to help ensure that men and women have equal rights (TSPA) ensured all IDPs were able to move out of tents in land ownership, and to promote equal access to the and into transitional housing by mid-2006, delivering associated economic benefits. BRR will be working more than 11,000 shelters under that programme. WFP closely with BPN and local government to ensure the continued support to combat micro-nutrient deficiencies, joint land-titling policy can be effectively implemented. particularly among schoolchildren. Housing reconstruction in 2006 made Providing Social significant progress, but continues to face Services challenges. House construction, though slower than expected, has continued throughout 2006, with around With the aim of “building back better”, it is 57,000 permanent houses complete in December 2006 important to develop institutional capacity supplemented by almost 15,000 temporary houses to enhance the local administration and (including from TSPA), representing 50% of the overall support the sustainable development of Aceh housing reconstruction needs. However, delivery and Nias, ensuring effective provision of the continues to expose weaknesses in alignment of spatial full range of social services. Capacity-building and infrastructure planning with construction, quality in the recovery programme includes the provision and of construction and capacity of building contractors, equipping of health, education, administration, justice and and land titling. As was the case in 2005, 2006 has seen police facilities and the development of human resources declining commitments to rebuild due to increased such as the recruitment and training of staff. Progress costs and unexpected delays, highlighting a pressing has been made in physical reconstruction works, and challenge to meet all identified permanent housing needs. in filling civil service positions across the spectrum Between March and May 2006, BRR issued Housing of departments. However, the current emphasis on and Settlement Guidelines to deliver a housing and physical delivery of buildings and equipment needs to be settlement programme that reflects and accommodates complemented by staff development in administration, the specific needs and priorities of various beneficiary governance, medical and education programmes. groups – including squatters and renters. Settlement and Child protection is an important issue in the connecting infrastructure has not always been provided recovery of Aceh and Nias as the earthquake along with housing, and has highlighted the need for more and tsunami increased the vulnerability of thousands systematic and coordinated settlement development. The of children. Significant work has been done in tracing need for increased quality assurance and monitoring to and reunification, and through the establishment of 21 ensure construction of durable permanent housing has Children’s Centres. Specific initiatives are underway to also emerged. help the government, police and social services to adopt Land availability and tenure, and efficient more child-sensitive practices and protect children from spatial planning are critical issues in the abuse and exploitation. sustainable reconstruction and rehabilitation Achievements in the education sector have of Aceh and Nias, having direct implications on the continued throughout 2006, with almost 750 capacity to deliver the development of infrastructure, schools built so far, and the vast majority of children

Aceh and nias two years after the tsunami in school across Aceh and Nias. Initiatives to support longer term environmental management. A Strategic improved quality in education have begun through Environmental Framework (SEF) has been developed to teacher training programmes and the establishment of outline polices, structures and operational guidelines to Early Childhood Development (ECD) centres. During support environmentally sound reconstruction. 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 Establishing in early 2007. Infrastructure Health service provision was supported by the The infrastructure base in Aceh and Nias continued reconstruction and rehabilitation remains insufficient to support fully the of health facilities and infrastructure. A total of reconstruction process. Over 1,500km of roads 324 health facilities have been repaired or reconstructed have been constructed, but remote areas are still and efforts to improve the quality of available health isolated without transport networks, particularly for services have begun through the training and capacity building supplies. Works on the main West Coast road development of key health workers. For the longer are underway. Good progress has been achieved in term a broader strategy is required to improve the getting all airports and seaports operational, including implementation of safety net policies and the development completing new construction at Malahayati port and of preventative health care strategies. Meulaboh jetty. Some ports only have temporary facilities and will need to be upgraded, but designs and improvements are underway for various strategic Managing Disaster locations. Similarly airports are operational, whilst Risk and THE improvement works are going on. Investments in roads, Environment air and sea terminals is important both for the huge supplies being transported during reconstruction, and Disaster risk reduction is a key factor in also for economic development. a sustainable recovery. A comprehensive framework is being prepared, along with a Significant work has been completed to number of activities already underway including a sea improve water supply and sanitation, with defence programme, to protect coastal environments many agencies upgrading facilities provided during and support the safe reconstruction of housing and the emergency phase. More consideration is needed rehabilitation of agriculture, and the Tsunami Early of the longer-term availability of water sources and Warning System (TEWS). Particular areas for concern the sustainability of sanitation systems. Restoration include community awareness and use of community- of power supply is underway, already serving urban based planning to provide safe areas and escape routes, areas consistently, and major rehabilitation of irrigation and quality of building construction. Flood management systems is being carried out, which will also contribute and drainage problems are emerging, indicating need for to recovery in the agriculture sector. better drainage maintenance, including by households, The Infrastructure Reconstruction Enabling Programme and that drainage has not always been integrated into started tenders for consultants in 2006, and together settlement design. Urban drainage schemes are underway with the co-funded Finance Facility will be a vehicle but under-resourced. for broader and more strategic planning, design and Both the disasters and the reconstruction are management of infrastructure development. having significant impact on the environment, including water contamination, rehabilitation of land IMPROVING and coastal eco-systems, waste management, extensive Livelihoods timber logging and sand and gravel extraction. The Tsunami Recovery Waste Management Programme The tsunami and earthquake disasters have (TRWMP) has supported the resumption of municipal had a pronounced effect on the economies solid waste management services and the development of Aceh and Nias, both in terms of damage to of tsunami waste recycling initiatives. More capacity industry and infrastructure and the economic impact of is needed to undertake project environmental impact reconstruction activities. There was a 13% decrease in assessments in the reconstruction effort, and for the overall growth rate of Aceh in 2005, but this included

2006 Progress Report 10 a worrying decrease of 9% in the agricultural sector, been disbursed up to end of 2006. Significant gaps remain exacerbating rural poverty, along with a 45% increase across sectors and in some geographical areas including in transport and communications, likely to be due to the west coast, south, and Nias. With almost 75% of the reconstruction activity. During 2006, although wages funds already allocated to projects there is less scope have increased in Aceh, the rate of inflation shows prices for major adjustments to match outstanding needs. 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 Managing from large-scale reconstruction, coupled with decreased Reconstruction export capacity, has resulted in a considerable trade During the early part of 2006, BRR made the imbalance in the province. Engaging provincial and local significant decision to develop and pursue a government in the ongoing development of a sustainable decentralised programme, with widespread and long-term Economic Development Strategy for stakeholder support. The regional approach was Aceh is helping to support an effective transition to adopted to help ensure reconstruction and rehabilitation longer-term development planning and ensuring future in Aceh and Nias is sustainable, to work closer with economic growth in the province. local government in preparation for BRRs exit, and to Private sector development initiatives be better informed about needs and priorities at local are underway and are intended to support the level. Regional heads were appointed mid-2006, and Joint participation of local businesses in the reconstruction Secretariats with local government are being set up. So effort, and to develop local business skills and capacity far, the coordination and Joint Secretariat establishment for the longer-term. Nias continues to have a weak have been constrained by the emphasis in BRR on infrastructure base to support business, and Aceh has implementation of government projects. had a difficult business environment for years linked to Coordination has continued to improve the conflict. The Law of Governance of Aceh (LOGA) during 2006, including through the establishment presents a major opportunity to improve the enabling of the Kecamatan Coordination and Implementation business environment. Specific initiatives to improve the Mechanism (KCIM), and multi-stakeholder participation capacity of and opportunities for local small and medium in sectoral working groups at both provincial and enterprises include the provision of microfinance and district level. At sub-district level the establishment of credit. the KCIM in many parts of the West Coast has been Restoration of rural livelihoods is critical to critical in supporting the BRR regionalisation strategy. support the effective transition from the Engaging local stakeholders, the KCIM provides the relief phase to longer-term development, facility to collect locally generated information through as half of the rural population is living in poverty. the Kecamatan Reporting System (KRS) to enhance Rehabilitation of 50,000 hectares of agricultural land planning and coordination, and engage locally available is a major achievement, but investment is urgently capacities to resolve constraints. Sectoral coordination required to tackle poverty and realise the potential of at district level has been strengthened through the active the agriculture and fisheries industries. participation and leadership of local government. Information is a vital enabler for the Funding the recovery effort and for longer term planning. Recovery Considerable efforts and resources have been deployed to strengthen information management through ongoing A more up-to-date assessment of financing technical improvements to the publicly accessible RAN needs based on changes in operational Database, the transition of the Spatial Information and costs, inflation and other factors is probably Mapping (SIM) Centre to BRR and continued support necessary. The financial in-flows to support from UNORC through the creation of the Information reconstruction after the tsunami were unprecedented Analysis Section (IAS). The IAS has also facilitated with USD 8 billion committed from the Government of the Indonesian Government’s participation in the Indonesia, NGOs and donors. The initial damage and loss international TRIAMS initiative to collate recovery data assessment of USD 4.5 billion is adjusted to USD 6.1 from all tsunami affected countries. Efforts to improve billion with inflation. Approximately USD 2 billion has information management have focused on improving

Aceh and nias two years after the tsunami 11 the quality and accuracy of available data, supporting the profile of counter-corruption initiatives. BRR is actively analysis of information to support effective coordination working with partner organisations to ensure complaints and planning, building long-term capacity in information management systems are in place and effective. and analysis amongst local government institutions and Good public information is vital. Agencies that supporting regional offices and Joint Secretariats to have succeeded in maintaining a dialogue with the enhance the monitoring of recovery and reconstruction beneficiaries with whom they are working have found that activities across Aceh and Nias. given proper information and explanation, beneficiaries The Tim Terpadu external services team has are willing to show patience and understanding when it provided support throughout 2006 to assist foreign comes project implementation. nationals and organisations working in the recovery In response to concerns regarding gender effort. It is the first initiative of its kind in Indonesia, equity, BRR launched its policy and strategy established in December 2005, streamlining Immigration, paper on “Promoting Gender Equality in the Customs, Legal and Consular services, provided free, Rehabilitation and Reconstruction Process”. and incorporating various legislative measures to assist The paper has been developed in partnership with other the international community. In 2006 more than 7,000 stakeholders, including the Gender Working Group and individual immigration requests have been processed. a coalition of women’s organisations, to support gender- Logistics are central to reconstruction mainstreaming in policy development, planning and activities. Transport in particular continues to present implementation across all sectors. Short term priority major challenges, but significant progress has been made programmes, with a specific focus on the most vulnerable in the supply of timber, including help desk facility and women, need to be developed. 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 Looking Ahead housing and upcoming major infrastructure projects to 2007 on the supply chain remains a concern. NGOs have In meeting vital needs for housing, validation shouldered many logistical difficulties and learned from of beneficiaries and land titling are two experience, however many NGOs and their contractors/ critical bottlenecks that need attention in sub-contractors still lack logistical capacity, which could 2007. Coordination in the housing sector has improved make their delivery vulnerable to further pressures on but housing and planning need to be better integrated the supply chain. with other sectors, and activity in 2007 needs to follow a review of gaps in housing provision and associated Promoting Quality, infrastructure, particularly in remote areas. More Integrity and Equity investment is required in quality assurance, and in incorporating environmental and disaster risk concerns 2006 has seen increasing understanding in settlements. about quality problems. Of particular concern is The provision of social services will be poor construction quality, in general as a result of low enhanced through programmes to develop contractor capacity and poor supervision. The problems the capacity of local government and are recognised and being addressed through training and institutions. Following provision of equipment and monitoring, but partners must continue to be vigilant construction of facilities, the government needs to and ensure that resources are assigned. BRR and others develop capacity to manage those assets well and improve have learned lessons about the procurement processes quality of services by developing human resources and needed for this scale and speed of reconstruction, and management systems. BRR were provided with a special decree to make direct appointments to contractors to speed up housing Managing disaster risk and environmental delivery. Anti-corruption remains a prime concern in impact are central to “building back better”. the recovery programme. BRRs Anti-Corruption Unit The broad frameworks drafted for each should be processed over a thousand complaints in 2006, and the ratified and implemented in early 2007, to improve presence of the Supreme Audit Agency and Corruption the integration of both disaster risk reduction and Eradication Commision in Aceh maintains the high environmental management across the reconstruction

2006 Progress Report 12 programme. Additional capacity is needed to tackle Effective management of reconstruction the bottleneck of environmental impact assessments in 2007 and beyond is dependent on BRR required for all projects. leadership, continued and better coordination and improved information management. All In infrastructure, the IREP programme and agencies must be increasingly careful and rigorous in finance facility will start to deliver in 2007. It setting realistic targets, demonstrating real progress will demonstrate the model for improving infrastructure and results, and finding ways to work effectively with planning and implementation for reconstruction, local government to achieve the right balance between for longer-term investment to support economic the process of enhancing capacity and the delivery of development and to link government capacity building outputs. with physical development. 2007 will include the planning of transition Livelihoods in Aceh and Nias are still and exit strategies, and for some agencies vulnerable, and interventions in 2007 must the implementation of those strategies. The start to address the long-term economic recovery programme will continue to become more impacts of the tsunami and reconstruction broad-ranging and complex as it addresses cross- process and poverty reduction. Critical cutting themes and longer-term development goals. attention must also remain on enhancing the livelihood Communities are key partners in looking beyond the opportunities in the short-term, particularly in agriculture reconstruction to developing the longer-term goals for and fisheries where major investment is needed given economic and social development in Aceh and Nias. 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.

Aceh and nias two years after the tsunami 13 PROGRESS SUMMARY

2004 Damage 2005 & 2006 progress

MEETING VITAL NEEDS

• 167,000 dead or missing • During 2006, more than 65,000 IDPs have been from tsunami moved out of tents into transitional housing

• 500,000 displaced from • 15,000 transitional houses built homes in Aceh • 57,000 permanent houses will be built by • 900 dead and 13,500 families the end of 2006 in Aceh and Nias displaced after March 2005 earthquake in Nias. • 17,400 land titles have been signed and 134,300 parcels have been measured, all in Aceh • 80,000-110,000 new houses in Aceh needed and 13,500 in Nias

PROVIDING SOCIAL SERVICES

• More than 2,000 school • 623 permanent schools in Aceh and 124 in Nias built/ buildings damaged repaired, supplemented by 379 temporary schools

• Approximately 2,500 teachers died • More than 5,100 teachers trained in Aceh and 285 teachers trained in Nias • More than eight hospitals damaged or destroyed • 305 health facilities in total built/rehabilitated in Aceh and 19 in Nias – including satellite health • 114 health centres and sub- posts, health centres and sub-centres damaged in the centres damaged or destroyed disasters and 3 hospitals in Aceh and 1 in Nias

MANAGING DISASTER RISK AND THE ENVIRONMENT

• 5,765,000 cubic metres • More than 1 million cubic metres waste cleared and tsunami waste created 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

2006 Progress Report 14 2004 Damage 2005 & 2006 progress

ESTABLISHING INFRASTRUCTURE

IMPROVING LIVELIHOODS

• USD1.2 billion damage • 69 % of the male labour force and 36 % of the female to productive sector labour force actively engaged in urban areas.

• Projected economic decline • 68 % of the male labour force and 45 % of the female labour of 5% in Aceh; 20% in Nias force are working in rural areas of both Aceh and Nias.

• 100,000 small business persons • 4,420 fishing vessels have been replaced lost their livelihoods • 6,800 ha of fishponds rehabilitated • 4,717 coastal fishing boats lost • More than 50,000 ha of agricultural land have been rehabilitated • More than 20,000 ha fish ponds destroyed or out of action

• 60,000 farmers displaced

• More than 70,000 ha agricultural land damaged

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

Aceh and nias two years after the tsunami 15

Focus on Aceh Statement from the Governor successfully achieved this objective, a combined effort of the Province of Nanggroe between the provincial and district governments working Aceh DarusSalam, in close coordination with UNORC and a number of other partners. Dr. Mustafa Abubakar 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 Context time to do rigorous and detailed spatial planning with The earthquake of December 2004, and the huge construction sometimes outpacing sound planning. tsunami it generated, created widespread destruction However, I and partner agencies in the reconstruction and devastation throughout the province of Nanggroe process will focus in 2007 on correcting any weaknesses Aceh Darussalam. As a result, it brought forth one of in planning to ensure that our communities and their the greatest humanitarian outpourings in living memory. settlements are being developed and provided with USD 8 billion was pledged for Aceh and Nias relief and services in a sustainable way. recovery. We are also implementing key initiatives addressing To effectively manage the unprecedented level of the equally important reconciliation and reintegration financial assistance pledged by the global community in process, ensuring the peace created through the August the face of a weakened local government, the Agency 2005 Accord is sustained. for Reconstruction and Rehabilitation (BRR) Aceh and For many months these two processes have operated Nias was established and commenced operations in fairly independently of one another. Yet the objective May 2005. As the designated Vice Chairman of BRR, at the end of the day is to build back a better Aceh. it is my responsibility to assist in the Agency’s optimal Knowing that this is our ultimate goal, I view myself as performance. the “development integrator” trying to slowly merge Three months after BRR initiated operations in Aceh, these two interdependent processes into a coherent, we experienced another effect from the natural disaster comprehensive development strategy for the entire of December 2004. Although a direct cause and effect province. relationship is difficult to determine, it is without On one hand, I have the BRR focusing on the critically question that the disaster was instrumental in bringing important reconstruction and rehabilitation process, together GOI and GAM for the historic signing of the a process leading to prosperity. One the other hand, Helsinki Peace Accord in August 2005. I have the BRA addressing the difficult challenge of To facilitate implementation of programs geared toward reintegration, a process leading to security. It is my reconciliation and reintegration, I created in February intention and desire to initiate stronger synergy between 2005 the Aceh Peace-Reintegration Agency, BRA. As the BRR and BRA activities. Chairman of BRA, it is my responsibility to oversee the We often hear that there can be no sustainable successful implementation of initiatives that will foster reconstruction and rehabilitation without peace and no the reintegration of ex-combatants, non-combatants and sustainable peace without a solid reconstruction and amnestied prisoners into civil society and to undertake rehabilitation process. Aceh is living proof how true this integrated programs aimed at generating employment statement is. and improving livelihoods for thousands of victims Successful reconstruction and rehabilitation through affected by this decades-long conflict. BRR remains the number one priority for Aceh. Within this priority, the rebuilding of major infrastructure is Issues certainly the most important component. The massive reconstruction and rehabilitation effort that has been on going for nearly two years has achieved Although rebuilding infrastructure throughout the much. Success stories and challenges we still face are province is critical, current and future focus must be on dealt with in other sections of this commemoration expanding opportunities for local economic development report. However, I do want to make special mention of and employment generation. the goal I set to have all those living in tents be moved to On December 11, 2006 Aceh held its first ever democratic temporary shelters by mid-2006. I can proudly say we election. Millions of people selected who they wanted to

2006 Progress Report 18 Focus on Aceh professionally, honestly and transparently govern their Opportunities fifteen districts, four municipalities and one province The prosperity generated from the huge inflow of for the next five years. Unique to Aceh, and to all of financial resources for reconstruction and rehabilitation, Indonesia, was the opportunity for candidates to run the dividends to be gained as a result of the peace under independent party banners. This democratisation accord, and the passing of the Law on Governing Aceh process is key for the long-term health of the province. collectively create unprecedented opportunities for us I also declared 2006 as the Year of Eliminating Corruption as we move forward. in the province, a worthy goal that has proven difficult to There is a critical need for developing Acehnese human achieve but absolutely necessary if we are to build back resources, in particular within the government structures a better Aceh. and the private sector; wherever and whenever possible, Civil service reform is a priority. I have implemented utilization of local resources must be prioritized. a number of important initiatives in the interests of Capacity building is not just an outcome but a process transparency and accountability. In appointing those that requires sufficient time for it to achieve its expected to the highest levels of local government, in particular results. mayors and district heads, care is taken to ensure We shall use 2007 to initiate a comprehensive planning they support and implement my programme of clean process, including instituting appropriate financial government. I have also developed an appropriate management processes and procedures, in preparation performance-based incentive programme for staff, built for the receipt of additional funds generated from in to our HR procedures. And finally, all civil servants, receiving 2% of the national general allocation fund whether those currently serving or newly recruited, are (DAU). The funds coming in 2008 and onwards will be required to support and uphold efforts at anti-corruption. substantial. I am working with the BRR and others more broadly in We shall also focus on designing an appropriate BRR exit improving the overall performance and capacity to serve strategy. There must be a gradual transition from the communities in Aceh. Civil service reform is not just a current situation with BRR leading up to their exit in slogan; it is a reality. 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.

Aceh and nias two years after the tsunami 19

Focus on Nias BRR Nias is giving priority to making the district Recovery in Nias government systems work, especially using the Only USD 235 million has been pledged for Nias although government funds that flow through BRR to provincial USD 400 million is required to repair damage. However, and district level administrations. Through block grants, given the poor state of Nias prior to the disasters, BRR supports and strengthens local governments an estimated investment of USD 1 billion is needed to assume responsibility, particularly for meeting the – half of which is required for rebuilding transport middle-level infrastructure needs. If local governments infrastructure. are particularly weak or failing to perform well, BRR will Rebuilding the economy is best served by implementing invoke its own direct implementation capacity to ensure physical reconstruction as soon as possible and the pace of reconstruction is maintained. accompanying it with the restoration of livelihoods A data retrieval programme has been launched to which are heavily dependent on small-scale fisheries record information from Nias regarding nutrition, life and agriculture, and which were weak prior to tsunami expectancy, mortality rates, health and livelihoods. and earthquake due to isolation from the markets. Many Supported by several international organizations, BRR has international agencies are concerned about livelihoods also conducted a local survey and training in information and are contributing through replacement of lost assets management, aiming to ensure that the statistical and services. Restoration of coastal tourism is another information gathered can be used by local government neglected opportunity for Nias. to plan appropriate development programmes in future. The gradual recovery of Nias is visible in the rehabilitation and reconstruction of roads, bridges, houses and Coordination institutions. In 2006 housing construction has significantly Coordination between BRR, the UN agencies, and the picked up, with almost 5,400 new and 350 non-permanent international and national NGOs has strengthened over houses built by end 2006. The recovery programme in the last year in Nias. Working remotely on an island Nias is supported by 42 International NGOs, 24 National with the poorest and most underdeveloped districts NGOs, 13 United Nations agencies, 8 government in North Sumatra Province has encouraged closer agencies and many others collectively seeking to realize cooperation and solidarity between the organizations the goal of “Building Nias Back Better”. who are working on recovery projects. All share the same challenges – damaged infrastructure, poor or Nias directing its own Reconstruction non-existent communications, and logistical difficulties. Implementing partners and BRR have devolved significant Coordination and cooperation is vital. Consideration decision-making to management based in Nias. It had the for cultural and language issues in coordinating the first BRR decentralised regional office, established in June implementation of projects with communities, village 2005. Whilst emergency relief and initial reconstruction heads and traditional cultural leaders has been one of was provided by UN agencies, international and national the most difficult and challenging tasks, especially given NGOs and the military, BRR’s decentralisation from the complex land ownership and access problem in Nias. head office in Aceh to Gunung Sitoli brought the BRR However, the improvements in coordination are making reconstruction programme decision-making closer a difference in getting support to the poorest and most to local government, implementing partners and marginalized communities and in finding solutions to the communities. BRR is now establishing a representative many problems that organizations face in carrying out office in Teluk Dalam in the south. Having the authority their projects. to direct recovery has enabled organisations to work together more efficiently, and in turn allow decision- At a district level, early 2006 saw a transition between making at the sub-district level and by people in the the humanitarian coordination meetings that had been field. Field managers can be given discretion to cater convened by BRR and UNORC (previously by OCHA to individual family needs in housing; to consider the in 2005) and the establishment in April 2006 of BRR’s needs of pedestrians and landowners beside roads; or Recovery Coordination Meetings in Gunung Sitoli. These to work directly with school committees. The BRR- meetings have provided organisations with an opportunity ADB partnership is emphasising the redevelopment of to be briefed on BRR’s on-going reconstruction plans coastal livelihoods through its participative programme and to raise issues affecting the implementation of their of community contracts backed by technical advice for projects. sustainability. 2006 Progress Report 22 Focus on Nias

Challenges Nias’ isolation means building materials are either difficult One of the biggest challenges of 2006 has been to obtain in sufficient quantities at affordable prices for coordinating the logistics of bringing in large supplies of the local population, or periodically unavailable. Sporadic timber to Nias for permanent housing and temporary fuel supplies at exaggerated prices and remoteness from shelter construction, as well as for boats. UNHCR in markets have increased Nias’ economic problems. In Nias and Medan purchased and shipped legal supplies most cases, the primary cause of supply shortages is of timber from Kalimantan. With logistical support from insufficient and irregular shipping services on the main WFP Shipping Service and IOM’s trucking fleet and supply routes. The port facilities in Gunung Sitoli are too despite all the insurmountable obstacles and delays they small to handle the volume of materials being shipped distributed 390,038 pieces of timber (or around 7,000 and as a result it is extremely congested. The new jetty in cubic metres) to 11 organizations with construction Gunung Sitoli offers an alternative to the main port, but projects throughout the island, including to BRR. Similarly, the jetty can only service small conventional vessels. the IFRC’s operations to provide steel frames and bring For inland transport in Nias, the key bottlenecks are the in supplies of timber from international sources to build sporadic deliveries, lack of fuel pumping stations, high temporary shelters for those IDPs still living in tents cost, small size and capacity of the trucking fleet, the was an enormous undertaking that would not have been poor state of the road infrastructure, and the lack of successful without the close coordination between the road access to many communities. The material flows IFRC, UNORC, BRR and the international and national required to complete the reconstruction activity will NGOs. require additional trucks, better roads and an improved fuel supply.

Aceh and nias two years after the tsunami 23 Special Considerations for Nias Housing leaders. In this system, the position of women’s property Even before the disasters, many settlements had rights is weak even though their presence as working inadequate sanitation and access to clean water, despite contributors to family economies is strong. Unlike Aceh, a large number of springs and small rivers. Limited inheritance of rights to land and property is through sanitation is exacerbated by poor hygiene practices, male survivors. BRR Nias is working to ensure special people using the backyards and gardens as places to efforts are made to ensure that women do not lose throw both their domestic solid waste and waste water. out in receiving assistance, especially widows and single The resulting environment creates an ideal breeding women heirs. ground for malaria, cholera, dysentery and other Sensitivity to local traditional architecture and village intestinal diseases. The Nias housing project, therefore, planning is important in both rehabilitating and building provides a real opportunity to “build back better” by new housing. Traditional Nias settlement layout includes integrating improvements of access to clean water and a broad stone-paved street, called an ewali which serves better sanitation, and educating the public to the risks of multiple functions, including meeting areas for informal current habits, and ways to reduce potential hazards. and village meetings, and a hoso, for traditional stone Housing delivery in Nias aims to work with traditional jumping. Many villages still have a substantial number of social systems, considering that traditional leaders still traditional houses, many of which have been damaged have considerable influence. The dominant form of land and need to be preserved, that preservation also being rights is adat, or traditional rights, where land is owned in the interest of attracting tourism. by the clan and the right of use is controlled by local

2006 Progress Report 24 Focus on Nias

NIAS PROGRESS SUMMARY 2004 Damage 2005 & 2006 progress

MEETING VITAL NEEDS

• 900 dead, 6,000 injured and 13,500 • 5,440 permanent houses built/repaired and families displaced and in need of houses 350 non-permanent/transitional houses

PROVIDING SOCIAL SERVICES

• 755 out of 879 schools • 124 permanent schools built/repaired, damaged or destroyed supplemented by 214 temporary schools

• Two hospitals damaged and more • 285 teachers trained than170 facilities required repair • 1 hospital and 19 health facilities rebuilt/repaired

ESTABLISHING INFRASTRUCTURE

• Nearly all water distribution • Rehabilitation of drinking water distribution networks in sub-districts and networks underway in 5 locations district capitals were damaged • 309 km road built /repaired, repairs underway on 250 km • 3 bridges, 800 km of district roads and 266km provincial roads damaged • 37 bridges built/repaired

• 12 large and small ports/ • 3 ports/jetties and 2 airports built/under development jetties destroyed

IMPROVING LIVELIHOODS

• Irrigation networks damaged affecting • 518 fishing vessels have been replaced 90% of people’s livelihoods • 1,510 ha of agricultural land have been rehabilitated • 219 markets, shops and kiosks destroyed • Irrigation projects underway in 13 villages

• 88 food stalls and temporary markets established

Aceh and nias two years after the tsunami 25

Meeting Vital Needs

2004 Damage 2005 & 2006 progress

• 167,000 dead or missing from tsunami • During 2006, more than 65,000 IDPs have been moved out of tents into transitional housing • 500,000 displaced from homes in Aceh • 15,000 transitional houses built • 900 dead and 13,500 families displaced after March 2005 earthquake in Nias. • 57,000 permanent houses will be built by the end of 2006 in Aceh and Nias • 80,000-110,000 new houses in Aceh needed and 13,500 in Nias • 17,400 land titles have been signed and 134,300 parcels have been measured, all in Aceh like IDPs who remain in host communities, they are Protecting more scattered and less visible. It is important that their the most needs for adequate water sanitation, permanent housing Vulnerable and assistance to restore their livelihoods are met. BRR, local government and recovery organisations are The recovery and reconstruction, in particular that of striving to improve the living conditions in barracks. IDPs physical assets, during 2006 has picked up momentum continue to move among varying transitional shelter but certain vulnerabilities remain. The recovery options. The challenge will be how to identify the most community must also continue to attend to the needs of vulnerable and apply targeted responses whilst ensuring the most vulnerable even whilst the main focus in 2007 equity and fairness. A cross-sectoral beneficiary-focused will continue to be the reconstruction of houses and approach is needed to integrate the reconstruction infrastructure and medium term development. Particular of houses, the restoration of livelihoods and the care must be given to ensuring that the recovery and maintenance of social safety nets so that beneficiaries reconstruction does not leave the most vulnerable are assisted in building back their lives. behind, but rather places their welfare at the forefront of the recovery and reconstruction agenda. Micro nutrient deficiencies and public health issues Affected populations without The World Food Programme (WFP) commissioned a permanent housing solutions cross sectional survey in 2006 in urban and rural areas With the recognition of the pace and constraints affecting of Aceh Province and Nias to assess the health and permanent housing delivery, the Temporary Shelter Plan nutritional status of primary schoolchildren and their of Action (TSPA) was launched in 2005 to provide an cognitive performance. The survey results exposed that acceptable and appropriate transitional shelter solution. in Aceh, the prevalence of malnourished children ranged The main component of TSPA was the provision of from a mild to high public health problem. Anaemia was up to 20,000 temporary shelter units provided by the found in 27% of Acehnese children and 28% of Nias International Federation of Red Cross/Red Crescent children (moderate public health problem). As for the and delivered and constructed via a consortium of proportion of sub-clinical vitamin A deficiency, Aceh 33 implementing partners including BRR, Red Cross and Nias were 17% and 33% respectively. The vitamin A Societies, NGOs, UN agencies and donor institutions. deficiency was considered severe on Nias. Malaria and Challenges have included the provision of water and helminthes infection were also very high on Nias, 46% sanitation facilities and electricity, procurement of and 75% respectively. In Aceh the prevalence was 12% for timber and identification of relocation sites, but these malaria and 53% for worm infestation. Further, the survey continue to be tackled by implementing partners and revealed that the prevalence of underweight, stunting and wasting in Aceh were 21%, 27% and 8% respectively. the government, and the implementation of TSPA has While in Nias, the prevalence was 22%, 36% and 2% demonstrated excellent collaboration in providing respectively. The prevalence of stunting and underweight extraordinary assistance in response to the prolonged in Nias was considered as a high public health problem and deteriorating living conditions of IDPs in tents. The while prevalence of wasting was considered low. 20% implementation of TSPA picked up speed during the of primary school children in Aceh had low cognitive first half of 2006. Passing a milestone that all those that performance. The percentage was higher among stunted started 2006 living in tents were out of tents and in children. On Nias Island, 40% of the children surveyed appropriate transitional housing by the middle of 2006 is had low cognitive performance. testament to this collaboration. To this date, over 11,000 temporary shelter units have been delivered Recognizing the importance of mitigating micro nutrient deficiencies and improving the cognitive performance The CARDI Temporary Settlement Monitoring project, of schoolchildren, WFP continues to provide fortified which surveyed 439 temporary settlements between biscuits (fortified with 9 vitamins and 5 minerals) to August and October 2006, found over 18,500 households primary schoolchildren in 9 districts in Aceh Province remaining in barracks, and over 20,000 households with a caseload of 300,000 students. who have returned to their home area are not yet in Further to the UNICEF nutritional survey conducted in 2005 that identified the prevalence of permanent accommodation. These households are mainly underweight, stunting and wasting children under the age of 5 years in Aceh was 41%, 38% living in shelters they have constructed themselves and, and 8% respectively. While in Nias, the prevalence was 48%, 48% and 11% respectively

2006 Progress Report 28 Meeting Vital Needs Housing and Settlements Two years after the disaster of the December 2004 The housing reconstruction programme revolves around tsunami and the March 2005 earthquake, the housing key issues, namely: sector has shown significant progress but gaps still • Households which completely lost their houses remain. The sector suffered almost USD 1.4 billion in and their land; damages, which accounted for over 30% of the overall damage and losses. Hence, it will also require the most • Houses which have become non-repairable and intense and greatest of efforts to restore the province need to be rebuilt; to its initial state. • Tenants who lost the accommodation they were The housing sector poses the greatest short term renting; and challenges for all donors, international agencies, • Squatters who lost their temporary shelters and NGOs which are involved in this mammoth To accommodate the different beneficiary groups created reconstruction task. Housing requirements were more as a result of the housing disaster, the BRR issued four than 120,000 new houses and rehabilitation of almost 85,000, both medium and heavily damaged homes. Over guidelines as part of the Housing Settlement framework 500,000 people were left homeless and until today, many between March and May 2006 to provide a uniform victims still continue to occupy barracks and other mechanism for all actors involved. The guidelines provide temporary shelters despite all efforts to reconstruct clear and distinct compensation schemes for each of the quality houses in the shortest time possible. beneficiaries

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.

Aceh and nias two years after the tsunami 29 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 Satisfaction Accountability surveyed Number of Construction with house and housing Samples Quality (Due process process programme achieved)

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

Outside 114 locations 6.7 ± 0.6 6.5 ± 2.0 6.6 ± 2.6 Banda Aceh

Flawlessly Benchmarks Overall Building Code = 7.5 satisfaction accountable > 8 (“± …” indicates 1 standard Unsafe < 6.25 requires score Due process not deviation) > 5 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.

2006 Progress Report 30 Meeting Vital Needs

Construction materials and costs: Price hikes BRR Housing and Settlement Guidelines 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 Guideline Highlight agencies and NGOs. Serious efforts have been also made reference by the BRR and major agencies to ensure all timber used Heavily damaged homes is procured from legal and sustainable sources. Many receive once-off 50% cash houses have already shown signs of severe degradation Rehabilitation award of a new Type-36 due to untreated and weak quality timber used. (No.18) house and medium damaged ones receive 25% of the Provision of adequate infrastructure: Many same. donors and NGOs have focused on the provision of housing with limited investment in associated A new house with price infrastructure. This is in part understandable, given Reconstruction range of IDR 60 million up to the mandates and profiles of NGOs and that villagers (No.19) IDR 78 million depending on have indicated that their primary need is housing. The the area. community-based approach to housing development does not lend itself easily to the provision of a coordinated Depending on the victim’s network of primary and secondary services managed by Resettlement status prior to the tsunami, local government and utilities. NGOs were encouraged (No.20) BRR will assist with land to and did invest in basic community level infrastructure, acquisition and resettlement. however in 2005 much housing construction started without the provision of basic services (water supply, Renters and A one time cash payment drainage, sanitation, power and lighting, roads, and solid squatters equal to 40% of the value of a waste disposal). BRR, local government and donors (No. 21) new Type-36 house. 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, The Challenges and roads. Infrastructure plans must be developed and if Getting people out of barracks into quality new houses necessary retrofitted for housing or settlements already by December 2006 is proving to be more difficult than constructed. originally perceived. The validation and verification of beneficiaries to filter out the fraudulent and non- The overall challenge still remains that of building houses legitimate claims is an extremely time consuming with high quality and anti-seismic standards (according exercise and has caused unwanted delays in the overall to Government of Indonesia scale of 6 for Aceh and reconstruction. Other key issues directly affecting the 5 for Nias). Quality and robustness of construction is programme include: a concern in both community and contractor based construction. Several actors have struggled to maintain Land tenure and ownership: The reconstitution of high monitoring and evaluation standards which has land tenure and titles has been slower than expected and resulted in some non-durable houses, including cases further complicates the classification of the beneficiaries. where recently-built houses have become uninhabitable Land disputes amongst surviving households on one prior to the beneficiary occupying the premises. The hand and the paucity of land titles traditionally in most ability to build a quality house as part of a properly areas of Aceh further exacerbate the situation. serviced settlement is the primary goal in the coming Damaged land: Due to permanent flooding on some months and years. former housing sites and because of other topographical changes, almost 12,000 families will require relocation Two-Year Results to new areas. This requires land acquisition as well as During 2005 in particular and to a lesser extent in 2006, every beneficiary’s consent to be moved. there was a decline in commitments to meet the total

Source: Rebuilding Lives in Aceh and Nias, Indonesia – Testing the Community Participation Approach housing needs, due to revisions in programme plans in Housing Reconstruction and Rehabilitation by F. Steinberg (ADB) based on improved budgeting and understanding of

Aceh and nias two years after the tsunami 31 operational constraints. NGOs and other implementing agencies are not making additional commitments to Land and undertake further housing projects due to lack of funds Spatial and downsizing of their operations. As at November 2006, a total of 50,000 permanent houses had been Planning completed, with around 57,000 due by the end of 2006. The dramatic destruction of over 800 km of the Out of a total of more than 120,000 required it means the Acehnese coastline greatly affected the primary urban reconstruction effort is reaching the half way mark for centres of Banda Aceh, Calang, and Meulaboh. The delivery needed since the December 2004 disaster. The tsunami wave not only claimed people’s lives but with permanent houses delivery is supplemented by 15,000 it destroyed precious vegetation, fertile soil, habitat, transitional houses that provide adequate housing for a sensitive estuarine areas, and groundwater. Almost two 3-4 year period but more than 60,000 permanent new years after the tsunami, proper spatial plans for Aceh houses still remain to be completed. and Nias are still being prepared with the aim of re- The trend of declining commitments and the progress of establishing basic infrastructure services and support to the housing construction to date highlights some issues the communities and stimulating sustainable livelihood which need to be addressed immediately to prevent a programmes. further slowdown of the reconstruction programme. To rebuild a better and safer Aceh and Nias, spatial • Only 80% of the total requirements have been planning at the sub-district and village levels is crucial to building back better. Although administratively district- committed by the NGOs and the international planning is part of the provincial government’s planning agencies which mean a shortfall of 20%, possibly process, the BRR immediately recognized that spatial more, remains. planning at the sub-district and village level would be • The likelihood of commitments not being realised, the most efficient way of identifying needs and project or scaled down, has not always been communicated requirements. Approximately 90 sub-districts in Aceh to or absorbed by BRR in a timely manner, which and another 22 in Nias are badly affected; BRR set the has put a further strain on the reconstruction as it priority of developing spatial and project plans across 60 has affected future planning and programming. sub-districts in the coastal area of Aceh and the island of • The issue of rehabilitation of damaged homes seems Nias defined as having the most urgent needs. Similarly, to be overlooked as providing cash compensation 712 villages have been identified as priority areas for as per BRR guidelines is not a preferred model by planning purposes because they comprise both heavily implementing partners, who find it easier to build and medium damaged areas. new properties. Land availability and tenure is central to economic • Providing for community and inter-settlement and social revival. Land issues were a challenge to the infrastructure as an integral subset of the housing government during the conflict years and were further commitments. complicated in Aceh and Nias after the disaster. From a total of 300,000 land parcels damaged, 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 BPN (National Land Agency) to assist in the registering and titling of land parcels known as RALAS (Restoration of Aceh Land Administration System).

Source: Asian Development Bank Package 6 calculations Source: BRR Spatial Planning Division Source: BRR Estimates Badan Pertanahan Nasional

2006 Progress Report 32 Meeting Vital Needs

Spatial Planning Progress to start in the last two years due to time needed for The progress of spatial planning of sub-districts and land negotiation and acquisition with communities. The villages has been slow in the last two years but momentum housing sector continues to be plagued with fraudulent is finally picking up. Approximately 20 sub-districts have land claims by organised groups, at times at the expense been covered to date and village planning activities are of vulnerable groups such as widows and orphans. In underway in more than 402 areas to date. Some of the the livelihoods sector progress has been significant major partners of BRR in the planning exercise include where more than 50,000 hectares of agricultural land ADB, MDF, GTZ, AIPRD-Logica, UN Habitat and PT has been restored from a total of 74,000 hectares Wastuwidyawan. The planning outputs at sub-district damaged after the disaster. Most international agencies level have helped identify budgetary requirements across have paid particular attention to ascertaining land tenure the major sectors of infrastructure and livelihood. This prior to housing reconstruction, although a few NGOs is greatly assisting the BRR and other stakeholders to overlooked this due to the urgency of reconstruction identify priority project implementation areas. The village needs. It is now clear with passing time that beneficiaries plans which have been produced for almost 300 villages will need to be offered security with land titles prior to to date provide much needed information regarding the the allocation of a house. The RALAS project has been location of future house plots and detailed engineering slower than expected, with BPN suffering from lack of designs to restore infrastructure. capacity to deal with the surge in workload and with only 17,390 titles issued. Greater intervention is required by Land titling and acquisition are still proving to be the provincial government and the BRR to accelerate challenging still. Major road projects have been slow 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

Source: BRR Spatial Planning Division

Aceh and nias two years after the tsunami 33

Providing Social Services

2004 Damage 2005 & 2006 progress

• More than 2,000 school buildings damaged • 623 permanent schools in Aceh and 124 in Nias built/ repaired, supplemented by 379 temporary schools • Approximately 2,500 teachers died • More than 5,100 teachers trained in Aceh • More than eight hospitals and 285 teachers trained in Nias damaged or destroyed • 305 health facilities in total built/rehabilitated in Aceh and 19 in Nias • 114 health centres and sub- – including satellite health posts, health centres and sub-centres centres damaged or destroyed damaged in the disasters and 3 hospitals in Aceh and 1 in Nias Significant progress has also been made in filling civil INSTITUTIONAL servant positions. Support has been provided by BRR to DEVELOPMENT assist in the recruitment of civil servants. This has been achieved through developing procedures for civil servant The tsunami disaster took the lives of well over 5,000 registration and where necessary providing workshops local government staff. The combination of the disaster and training courses to ensure competency standards and the lengthy conflict meant the remaining civil service are met. in general was far below capacity needed to deal with reconstruction activities. The creation of the BRR was A range of programmes have been underway throughout in part a response to this, and the primary goal of the 2006 to train local government employees, including the Institutional Development department of the BRR is to EU/GTZ Aceh Local Governance Action Programme, re-establish an institutional capacity for the administration USAID Local Government Support Programme and and sustainable development of Aceh and Nias. other training through YIPD, and training for sub-district and village heads supported by JICA, AusAid, GTZ and Institutional development is intended to enhance the the Government of France. The training ranges from capacity of a broad range of government apparatus technical, such as GIS, action planning, budgeting and core including district and provincial government agencies competencies; through to leadership and governance and the police. This is done through the provision training. To date civil servants have received 4,158 person of physical buildings, equipment, support from an days of training, from provincial to sub-district level, plus independent consulting firm to assist in the transfer of 200 village heads have received training. The provincial technical and management skills and support for general government is reviewing its HR requirements, with the institutional development and the provision of training support of BRR, with a view to longer term training and and educational programmes. staff development Despite the extensive damage caused by the tsunami and earthquakes, the redevelopment of a local government Joint Planning and Coordination at infrastructure in Aceh and Nias has progressed Provincial Level significantly. The major gaps within the physical structures Through the support of the Governor of Aceh and have been filled and it is anticipated that in 2007 more through the combined efforts of BRR and Bappeda, a Joint attention will be given to improving these structures and Planning Team has been established in the fourth quarter their facilities. 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.

2006 Progress Report 36 Providing Social Services

This type of programme, apart from delivering parents. Immediate challenges included dealing with the important training and the transfer of knowledge to trauma of tsunami victims and the increased vulnerability local government, has also provided the opportunity for of thousands of separated children and children in single different government agencies to work together in a parent households, who could be vulnerable to abuse, unique partnership. neglect and exploitation.

Challenges Tracing and Reunification Working in partnership with local government to Save the Children, in conjunction with the Provincial define potential capacity development needs and Department of Social Welfare, led an inter agency group priorities, and engaging with local people to develop a on the formation of a common database and have so genuine understanding of their needs and aspirations, far registered nearly 3,000 children. More than 1,300 is extremely challenging and requires significant efforts, children have been reunified with parents or relatives. The and patience to communicate openly and build trust. database has now been handed over to the Department Aceh and Nias have experienced many years of isolation. of Social Welfare with secondments of staff from Save The prolonged armed conflict in Aceh has resulted in the Children. at least one generation having very little exposure to In order to ensure proper follow-up of the reunified the opportunities gained from broader contact with the children, a targeted cash assistance scheme was outside world. The extensive activity and resources in implemented to support a core of fostering families, the reconstruction programme and the peace agreement including 1,300 caregivers and 1,700 separated and has created a chance to address that isolation and provide unaccompanied children. A livelihood support project the people with better and stronger government, that is is now being developed in collaboration with the ‘Child more effective and accountable to its constituents. Fund Aceh’ and this will benefit up to 1,000 children along with their respective caregivers. Child Children’s Centres Protection More than 19,000 children benefit regularly from In “building back better”, the recovery programme services provided at 21 Children’s Centres that provide seeks to create a safer and better environment in which registration, tracing and reunification of separated children can grow and develop. The earthquakes and the children, psycho-social support activities for adolescents tsunami at the end of 2004 had a devastating impact on and younger children, legal protection from abuse and children and their families. More than 3,000 children exploitation, and child participation activities including were separated from their primary caregivers and children’s committees. 526 child centre staff, 648 teachers, an unknown number of children were left with single 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.

Aceh and nias two years after the tsunami 37 The Social Welfare Departments at provincial, district and sub-district level are being supported by UNICEF Education and Save the Children in establishing a protective policy The role of education is critical to the transition from and legal environment for children, including integrating emergency to recovery. Education is a fundamental children’s centres with broader community services. right of all children in all situations. Through education, children develop and acquire the skills, knowledge and Children’s Homes competencies to better cope with the prevailing difficult A new report, produced jointly by Save the Children and circumstances and to contribute to the recovery and the Indonesian Department of Social Welfare, shows that the development of their families and communities. one of the longer lasting impacts of the December 2004 The general perception amongst communities, government disaster is likely to be the institutionalization of thousands and partners about the importance of educationcreated of children. The research which covered all of the Panti a favourable environment for the education sector during Asuhan Sosial (or Children’s Homes) in the Province of the recovery process. Communities were cooperative, Aceh identified over 2,500 children who entered the and they often prioritised children’s education over Homes as a direct result of the disaster. At the same other needs. As a result, a vast majority of children had time, the research showed that contrary to public and returned to school in Aceh and Nias in 2005. media statements about ‘tens of thousands’ of children who had been orphaned as a result of the Tsunami, only School Reconstruction 10% of the children who entered the institutions as a Almost 750 schools have been reconstructed. Almost result of that disaster had lost both parents while over 400 temporary schools built by different actors during 85% had one or even both parents alive. the first year continued to benefit children during 2006 by providing adequate space for teaching-learning while Justice for Children waiting for the permanent schools to be completed. UNICEF has trained 195 police women and deployed them in children’s centres to monitor the situation Improving Quality of Education of children and adolescents and to prevent abuse and The Provincial Department of Education prioritised an exploitation. Police officers, judges, prosecutors and in-service teacher training programme to improve the probation officers have been trained to take a more child- quality of teaching and learning for all children in all friendly approach in juvenile justice and 75 children’s schools. The mechanism for in-service teacher training centre staff were also trained in legal protection. The is the school cluster system for primary schools in 21 emphasis has been on more family and community-based districts of Aceh and 2 districts of Nias. A successful approaches to justice. Indonesian model of the Creating Learning Communities for Children (CLCC) programme which involves teachers, Child-friendly desks’ which consist of a waiting room, principals, supervisors, school committees and local doctor’s clinic for victims of violence, interview room and communities in the quality improvement of education, an administrative office are being set up in 12 Acehnese was selected as a strategy for the in-service teacher police stations to handle cases of violence against training programme. Introductory orientation and children and also cases of child abuse, exploitation and advocacy workshops targeted key education managers trafficking, either with the child being the victim or the of Aceh and Nias. perpetrator. The police officers assigned to the children During 2006, coordination meetings and discussion desks have been trained by UNICEF. A special court were held among donors/NGOs, Department of room for children in Banda Aceh District Court has also Education, and a coordinating committee included Syiah been established where juvenile trials are already taking Kuala University. The committee requested all donors place. 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.

2006 Progress Report 38 Providing Social Services

Five sessions of Training of Trainers (TOT) for CLCC Disaster preparedness and response is considered were conducted with 290 trainers, followed by the 102 important in the natural disasters prone province of Aceh, sessions of Trainings for Teachers at school cluster level, and is integrated as a cross-cutting issue for all levels reaching 3,366 teachers in 10 districts of Aceh and 2 of education. Technical task forces for each sub-sector districts in Nias. have been established under the joint leadership of local government and donors. Community participation and Early Childhood Development consultations will continue in early 2007 to ensure the The Aceh Provincial Education Department with the plan is locally relevant, practical and feasible. Efforts are support of donors are working to encourage remote underway to have the Five-Year Strategic Plan approved communities to create affordable community-based by the Government of Indonesia during the first quarter Early Childhood Development (ECD) centres and early of 2007. learning activities for young children of 0-6 years old, building upon “play groups” which existed prior to the Challenges tsunami/earthquake. One of the key challenges faced to date concerns ensuring Currently, stakeholders at provincial, district and adequate planning and coordination. A lack of attention community levels are advocating ECD in order to raise the to both these critical processes increases the risk of awareness and skills of caregivers (mothers, fathers, and duplication and over-lapping in school reconstruction other caregivers) to improve practices on early learning sites, with implementing agencies competing over sites in the communities. These initiatives, combined with the to reconstruct permanent schools. There have even training of community teams, will increase the number been reports of too many schools being reconstructed, of children, especially from disadvantaged communities, meaning some lie empty or serve only a tiny population attending the ECD centres and will eventually improve of children. A lack of effective coordination with the learning achievement of children. local government has also constrained progress in reconstruction, as both implementing partners and local government become frustrated by the lack of information Aceh Five-Year Education Strategic Plan or communication. (2007–2011) The future direction of education in Aceh has been Although BRR started to harmonise the minimum defined during 2006 through the development of the standards in school reconstruction in August 2005, there Aceh Five-Year Education Strategic Plan (2007 – 2011). is concern that some schools have been completed or The Governor of Aceh, in consultation with the director are under-construction with inconsistent enforcement of BRR, requested the Provincial Education Council to of such standards, with implications for children’s develop a strategic plan for the sustainable development safety in case of future emergencies. It is important to of education in the province. investigate where compliance with minimum standards may have been unwisely sacrificed in order to speed up The Steering Committee and the Secretariat were reconstruction, taking remedial action where necessary. established to provide the leadership and technical guidance and to facilitate the planning process. The five- year Strategic Plan has eight sub-sectors: 1. early childhood education; 2. basic education; 3. senior secondary education; 4. technical and vocational education; 5. Islamic boarding schools (religious/traditional education); 6. non-formal education; 7. teacher training (pre-service and in-service training); and 8. higher education.

Aceh and nias two years after the tsunami 39 Health Health is always a priority in the aftermath of disaster Providing access to training and education for skilled and in emergency response. Immediate and short term health workers has helped to develop capacities and needs that must be addressed include malnutrition, improve the overall provision of health services. BRR provision of latrines, clean water and sanitation systems has provided scholarships for 221 health workers and immunisation against disease. In this regard, health to attend advanced training, including 116 specialist services provided in the emergency phase successfully surgeons, paediatricians, gynaecologists, internists and prevented a potentially catastrophic public health anaesthetists who will serve as permanent specialists in disaster. all general hospitals throughout the Aceh Province. During 2006, efforts continued to support the provision Indonesia has a relatively good policy and regulatory of medical services through the physical reconstruction framework for dealing with the poor, and ensuring and rehabilitation of health facilities and infrastructure health provision for the needy, however both doctors and providing preliminary training for health workers. and communities are more used to a ‘cash culture’ and A total of 323 health facilities have been repaired or further awareness raising and training is needed on reconstructed, including 3 hospitals. However, there is an entitlements and the government’s safety net policies. ongoing need to ensure adequate medical supplies and More coherence is needed in the training to enable skilled personnel are available to equip and staff these the most effective process of calling on and providing health facilities. Capacity building needs good planning, services. 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.

2006 Progress Report 40 Providing Social 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.

1. Health system development 2. Health care delivery 3. Facility planning 4. 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.

Aceh and nias two years after the tsunami 41

Managing Disaster Risk and The Environment

2004 Damage 2005 & 2006 progress

• Tsunami Early Warning System being tested Substantial support in this sector has been provided Disaster Risk to BRR since March 2006 by the Government of the Reduction Netherlands, through a 30 month USD 9 million consultancy contract for Sea Defence Consultants. Disaster risk reduction is a key component of the The contract covers flood control, urban drainage, sea recovery and reconstruction process to ensure that defence and Tsunami Early Warning Systems (TEWS), communities are as prepared as possible to mitigate including community awareness programmes. againts future hazards. Decisions regarding the way funds are spent can directly affect how the projects will As part of this programme, escape routes and safe refuge increase or decrease vulnerability. The international areas in the event of future disasters are being designed Hyogo framework of 2005 sets out responsibilities of and developed and BRR and respective consulting teams key actors in integrating disaster risk reduction into will be commencing a pilot project in sub-district Lhoong sustainable development policies and planning, and a to identify suitable locations which will fulfil these national Disaster Risk Reduction Workshop held early requirements. The BRR is the primary funding source 2006 addressed a range of initiatives required, including for capital works, and multi-year contracts have been guidelines, policies and projects. used to allow smoother implementation throughout the year on year government budgeting cycles. Particular concerns in the reconstruction programme include building quality and locations, including close Sea Defence to the coastline. Communities (with implementing partners) have in some cases re-built close to the coast The impact of the tsunami and earthquakes and the on the basis that they did not have land elsewhere and appropriate sea defence mechanisms required have considered they had little alternative. However, and been much debated in 2006. At the beginning of the appropriate disaster risk management process included in reconstruction in 2005 there were no overall planning the community-based mapping provides an opportunity documents or feasibility studies offering a clear way for improving escape routes and improved awareness. ahead. Nevertheless action had to be taken in order to enable other reconstruction such as housing and BRR and UNDP are cooperating to issue a comprehensive agriculture rehabilitation that were dependent on high Disaster Risk Reduction framework, linking also with tide protection. Standard designs and experiences of provincial, local and national government entities. Issuing working elsewhere were applied in order to start works such as policy and framework is a priority at the end quickly, modifying as best as possible for field conditions of 2006. UNDP are working with Bakosurtanal in and community needs. However, this relied a lot on local preparing disaster risk maps and indices in relation to knowledge in communities, but often technical expertise environmental risk management plans. 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

2006 Progress Report 44 Managing Disaster Risk and the Environment be protected. Decisions have to balance economic, though it is unlikely that sophisticated systems would political, engineering, and environmental factors. be maintained and capacity building in operations and maintenance would be required. Proper emphasis must be given to the operation and maintenance of flood defence structures. Failure to Since the emergency phase there has been more properly maintain and operate defences can have concentration on buildings and above ground structure, catastrophic consequences, causing far worse flooding with too little design and planning of sub-structure and when defences breach than would have occurred if no civil engineering works. In housing coordination and defences had been built in the first place. community-based planning there is not enough guidance on spatial planning and drainage needs. 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 There is little awareness of sustainable drainage systems sector, land issues are a constraint. The policy of BRR is to in Aceh. Swales, retention ponds, wetlands, infiltration purchase only the land being used for coastal protection trenches and rainwater harvesting all reduce flooding works – not to compensate for land now submerged problems, and are considerably cheaper than conventional or to purchase the remainder of a plot if not required. concrete drains. They are also easier for communities However, people continue to expect compensation for to maintain and more resilient, being less likely to be portions of land on their plots that is now submerged, blocked by rubbish or damaged in earthquakes. An and to demand that entire plots be purchased rather awareness campaign should be started in 2007 to than only portions required for works. introduce sustainable drainage systems. Because drainage schemes rely on traditional hard Drainage and Flood Management engineering (using concrete channels almost exclusively) In the reconstruction programme there is not enough they are relatively expensive compared with house attention being paid to flood management. There are construction. The drainage scheme for zone 2 of Banda two main aspects to flood management – flood control Aceh will cost USD 4.5 million to cover 110,000 people, and urban drainage. Urban drainage is largely dependent not including sea defence measures. The pattern is on flood control so the two are combined and tackled emerging that the neglect of the sub-structure becomes together with sea defence. apparent only when people have moved into their houses and realised there are drainage problems. At that point The debates on appropriate sea defence strategies expensive retrofitting is required to avoid public health extend into flood management, with some proposing problems. that flooding problems are exacerbated or caused by the sea walls. Pumping stations and similar solutions can be BRR have recognised this is an issue and is calling on adopted. With the present capacity in local government NGOs to report immediately where they have not

Aceh and nias two years after the tsunami 45 provided or cannot fund the necessary infrastructure base for housing, so BRR can apply remaining 2006 funds Managing immediately wherever possible for remediation. With Environmental current neglect of the sector, continuing into 2007 there could be increasing gap between demand and budget. impact Not including retrofitting needs, Banda Aceh and Environmental assessments and examinations need to be Meulaboh drainage designs need to be finished in order undertaken in all areas prior to any form of reconstruction. to implement urban drainage and flood control by 2009. Although environmental problems did exist prior to Works for three zones in Banda Aceh remain unfunded. December 2004, major environmental issues need to be Meulaboh needs funds for capital works, there is addressed during the ongoing reconstruction process insufficient funding for flood control in the urban areas and should be given high priority in the work plans of and the infrastructure required for main river flood stakeholders involved in reconstruction. Examples of protection is still unfunded. A target for BRR is to some major issues of concern include: fund this by 2009. Lhokseumawe also needs design and • Contaminated drinking water and inadequate implementation of a drainage and flood control scheme sanitation systems in re-established housing areas, Singkil is an areas experiencing particular problems since especially problematic in areas with high water the land has settled more than 1 metre making the cost tables. of intervention there very high. • The large volumes of timber required for housing Community practices exacerbate flooding problems construction and for firing bricks, and the associated throughout. From years before the tsunami it has impacts on forest resources in Aceh, North Sumatera been common for people to dump garbage into the and Kalimantan from unsustainable or illegal logging; drains and for households and government to neglect and impacts associated with extraction of sand and the maintenance of flood drains. Extensive awareness gravel for building and road construction. programmes are essential if investments in physical • About 1,000 hectares of agricultural land are infrastructure are to provide effective flood management covered by a thick sediment layer and other and avoid public health problems. areas remain saline due to insufficient drainage so

2006 Progress Report 46 Managing Disaster Risk and the Environment

requiring improved land drainage. As the restoration Coastal Environments of these areas can be very expensive, alternative The earthquake and tsunami disasters caused serious land use practices should be considered such as damage to coastal environments, including coastal forests, animal husbandry. In addition, 27,500 hectares of corals and other wetlands. The restoration of the natural aquaculture ponds were affected and should be productivity and values of these coastal habitats through restored to environmentally sustainable production direct interventions or allowing natural processes where economically and technically feasible while of recovery, combined with improved management at the same time repairing and maintaining the of coastal resources, will contribute substantially to integrity of the coastal greenbelt. the sustainable recovery and development of coastal • The need to rehabilitate and protect coastal fisheries in Aceh and Nias. ecosystems that have been damaged by the tsunami Mangrove planting has made substantial progress during and/or unsustainable resource practices. 2006, but substantial work still remains to be done. • Large quantities of tsunami and household waste Investments in coastal ecosystem rehabilitation have still needs to be cleaned up, as it clogs up drainage been marred by poor planning and implementation. systems and represents a major source of infections. Proper assessments, including appropriate site selection At the same time waste collection and disposal combined with support to better coastal resource facilities are very deficient, and hazardous waste management will be necessary for the sustainable management is almost non-existent. It is highly recovery of coastal resources in Aceh and Nias. ADB recommended to further improve waste collection is contributing to this initiative by supporting coastal and treatment, with special emphasis on hazardous planning through the ETESP Spatial Planning and waste, and to create safe waste disposal facilities. Environmental Management (SPEM) component, and • Capacity in environmental management, impact building mangrove rehabilitation programmes into its assessment and spatial planning needs to be investments in the rehabilitation of the fisheries sector. enhanced. The environmental impact assessment Fisheries could be one of the backbones of Aceh’s system faces a bottleneck of projects requiring economy, with its potential backward and forward approval and requires further streamlining and linkages, but so far most fishermen use very traditional technical support. Monitoring of the environmental techniques and small boats, which prevents them from impacts of the reconstruction process and trends accessing richer fishing areas far offshore. In addition, the in environmental quality is limited. 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. Strategic Environmental Framework Forestry areas in Aceh are estimated to extend up to The Strategic Environmental Framework (SEF) for 4.13 million hectares or 75 % of the total size of the a More Environmentally Sound Reconstruction of territory, with tropical rain forests that contain of a Aceh Province is a set of policies, structures and operational guidelines ensuring that environment is great variety of wood and wildlife. There are currently properly considered in Aceh’s complete reconstruction about 20 companies that have been granted licenses to programme and project cycle – from policy develop about 1.58 hectares of forest to be production development to planning, implementation, monitoring, forest. The reconstruction’s demand for wood amounts and compliance promotion. to 740,000 cubic metres RWE (round wood equivalent), The objectives include supporting environmentally and while the supply available on the market is 100,000 socially sound investments; ensuring that environmental cubic metres, thus there is an demand of about 640,000 and social aspects, including cumulative impacts, are cubic metres. This increasing demand for wood already considered at an early stage in the reconstruction resulted in some illegal exploitation of forests. The use planning process; and preventing inadequate of salvage woods and alternative construction materials implementation of environmentally sound plans and projects. The SEF is designed to assist decision-making could somewhat ease this situation. 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. FAO Assessment for Demand and Supply of Timber for Post Tsunami Reconstruction in Indonesia.

Aceh and nias two years after the tsunami 47 Solid Waste Management The Tsunami Recovery Waste Management Programme The Tsunami Recovery Waste (TRWMP) aims to build capacity in government, create Management Programme Progress temporary employment and longer-term livelihoods in waste management whilst benefiting the environment Total TRWMP to through collection, recovery, and recycling of waste Key Performance Indicators September materials. This project was started by UNDP early 2005, 2006 with USD 15 million provided by the MDF in September 2005, executed in partnerships with BRR and local Tsunami waste cleared (m3) 1,060,137 Government Sanitation Departments (Dinas Kebersihan). The funding is expected to be fully spent by end Municipal waste collected / disposed (m3) 88,308 December 2006, but an extension is being proposed. Sawah / tambak /land rehabilitated (ha) 670 The project collects tsunami and other waste, plus has rehabilitated existing or has provided temporary/ Tsunami / earthquake damaged buildings 242 emergency dumpsites. Through waste recycling projects demolished (no.) it has provided interim livelihood opportunities. Drains cleared (average km per day) 3,8 The TRWMP was also conceived to address the environmental impact of the tsunami and earthquake Roads swept (average km per day) 11,6 disasters; in particular the waste generated by the disaster Temporary workers (average no. per day) and the need for appropriate handing and clean up of 1,451 this waste and rubble. Much of the waste recovered is Male workers (%) 69% recyclable for use in rehabilitation and reconstruction. Reuse of recycled timber, concrete and bricks has Female workers (%) 32% directly reduced the need to fell trees for virgin timber Internally Displaced Persons (IDPs) amongst and quarry rock for use in concrete, drainage, roads and 69.5% fill. workers (%) During the last year the TRWMP expanded to eight of Beneficiaries employed in livelihood 219 the most impacted districts in Aceh & Nias. Much of the projects (average no. per day) tsunami waste in the most affected municipal areas has Heavy equipment leased (average no. per been cleared. Attention has increasingly become focussed day) 185 on restoring and improving municipal waste disposal The Dump sites upgraded / rehabilitated (no.) 11 emphasis here is on the provision of support that will enable sustainable systems to be developed and that will Waste cells (ha) 16,5 provide workable and sustainable waste collection and processing. Significant work is still required to achieve Daily cover for waste area (ha) 39 these aims both within the current 8 districts and in others not yet reached by the programme. Roads rehabilitated / reclaimed with rubble 52.5 There is a longer-term need for sustainable properly (km) sited sanitary landfill facilities in Aceh and Nias. Studies indicate a disposal facility can be provided for Kota Banda Timber stockpiled for future re-use (m3) 17,442 Aceh/ Aceh Besar that utilizes the Clean Development Mechanism (CDM) to operate on a self funding basis. 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

2006 Progress Report 48 Managing Disaster Risk and the Environment

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 * TIS where: 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

Aceh and nias two years after the tsunami 49

Establishing Infrastructure

2004 Damage 2005 & 2006 progress

• 3,000 km of roads impassable • 1,200 km of all type of roads in Aceh and 300 km in Nias have been built/repaired. • 14 of 19 seaports badly damaged • 121 bridges in Aceh and 37 in Nias have been repaired • 8 of 10 airports damaged • All ports operational; 11 ferry terminals and harbours in • 120 arterial bridges destroyed, Aceh and 3 in Nias are built/under development 1,500 minor bridges • All airports operational; 5 airports and 1airstrip in Aceh and 2 in Nias built/under development. Enabling Transport Infrastructure Transportation networks continue to be a top priority for the reconstruction programme now and for the coming Lack of significant infrastructure two years after the years. Over 1,500 kms of roads have been repaired in disaster is hampering the reconstruction process. both Aceh and Nias but in some areas upgrading is still Primary infrastructure including major roads and proper required. Gaps in maritime transportation have been seaports are still inadequate and linkage with secondary filled by the WFP Shipping Service for 2006, but a longer networks to reach the more remote areas is imperative term solution is required. Years of conflict left the infrastructure neglected and the tsunami exacerbated further the problem. Restoration Roads and Bridges of national and district roads, access to potable water and electricity networks will help alleviate poverty issues The poor condition of roads and bridges is causing serious and promote economic development 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 Infrastructure Reconstruction financial capacities to restore the road system. In 2005 Enabling Programme the maintenance of emergency roads exceeded the capacity of local and provincial government and the The Infrastructure Reconstruction Enabling Project implementation of programmes through BRR had been (IREP) provides technical assistance at two levels. An lagging, resulting in implementing agencies, often lacking Infrastructure Programme Management Team, under technical expertise themselves, attempting to fulfil the the supervision of the BRR, will assist in strategic essential road works required. planning and coordination of all infrastructure activities. Concurrently, district-based technical This year, 2006, has seen greater coordination and teams develop detailed infrastructure designs and capacity building between both the BRR and local provide implementation support. The program is a governments. However, more extensive rebuilding and USD 42 million technical assistance funded by the investment is needed throughout, including non-tsunami Multi-Donor Trust Fund. affected areas, to achieve an improved network. Many bridges are still unable to accommodate more than 10 tonnes loads. Infrastructure Reconstruction Financing Facility The USAID-funded new road from Banda Aceh to Meulaboh has started, following design and land The Infrastructure Reconstruction Financing Facility acquisition. The rehabilitation of the 122km Calang- (IRFF), established in September 2006, provides Meulaboh section is funded by the Government of Japan funds for key infrastructure reconstruction projects and will be complete at the end of 2006, while the MDF identified through the Infrastructure Reconstruction has funded the rehabilitation underway on the Banda Enabling Programme. It combines USD 100 million Aceh-Calang section. The ADB is funding rehabilitation of Multi Donor Fund resources and USD 200 million of the 490km east coast road from Banda Aceh to the Government of Indonesia funds managed by BRR for North Sumatra border and work is expected to start infrastructure projects throughout Aceh and Nias. early 2007.

Ports Ports 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

Source: BRR and UNORC

2006 Progress Report 52 Establishing infrastructure great amounts of reconstruction materials. An estimated The current programme includes improvements 30 million tonnes of material is to be brought in over underway at Sosog port, and completed designs for a the next 3 to 4 years. new port at Lamno. A new ferry terminal is planned Rehabilitation of seaports and ferry terminals has made for Meulaboh, including a land reclamation scheme, good progress in the two year period. Of those damaged with design due to be complete by end of December or destroyed, all are now operational, but some with 2006. Calang, Sinabang, Gunung Sitoli ports are critical temporary facilities. For temporary capacity foreshore for bringing in construction and relief materials and ramps for the use of landing craft were constructed at temporary rehabilitation work has been completed with Calang, Meulaboh, Malayahati and Sinabang. A temporary permanent work expected to commence early 2007 wharf is also being constructed on Pulau Aceh (island) In Aceh Besar. Ulee Lheu (Banda Aceh) and Balohan Airports and Airstrips (Pulau Weh island) ferry terminals were refurbished. The Government of Indonesia through BRR is the New construction has been completed in Malahayati major financer of airport and airstrip reconstruction. port in Aceh Besar with 10,000DWT (dead weight The new Calang airstrip was funded by the Mission tonnage), funded by a grant from the Government of Aviation Fellowship (MAF) and was completed in 2005. the Netherlands and at Meulaboh jetty, funded by the All existing airports and airstrips in Aceh and Nias were Government of Singapore through the Singapore Red made operational since the disasters, although further Cross. improvements are ongoing. . Three new airstrips are

Aceh and nias two years after the tsunami 53 being designed for Sibigo (Simeulue), Teluk Dalam (Nias) water supply, and the environment. The problems are and Blang Pidie (Aceh), with construction due in 2007. most acute along the North and East Coast of Aceh, Improvement works are also planned at Sultan Iskandar which has the high population densities, more industry Muda in Banda Aceh in 2007 which served as the first and relatively small water catchments. port of call for all emergency and relief flights right after the tsunami. 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 Water Supply considerable support from ESP/USAID and GTZ/ SLGSR’s capacity building programmes. The World Bank In 2006, a number of significant water supply projects has commissioned studies into the institutional reform were initiated, repairing and rehabilitation water of the water companies. The issue remains problematic treatment works and pipelines damaged by the tsunami. due to political difficulties involved in raising water tariffs The first priority has been to provide appropriate water to a level where they actually sustain the water supply supply to reduce the need for water tankers and similar infrastructure and pay staff salaries. 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. Sanitation A large number of agencies support the water supply Sanitation is challenging because of high ground water sector; the IFRC, ICRC and Red Cross/Red Crescent levels, low level sites, earthquakes and poor awareness Societies, UNICEF, Islamic Relief, CARE, World Vision, of good practice. Sanitation standards in pre-tsunami Oxfam, USAID, CRS, THW, SAB-SAS among others. Aceh and Nias were poor in general. A working group The main Banda Aceh water sources at Gle Tarom, was formed in 2006 comprising NGOs in Housing and Mata Ie, Jantho and Meulaboh have been rehabilitated Watsan services. They have developed and published by PDAM, with support from UNICEF, THW and other a set of sanitation guidelines for Aceh-Nias. These partners. The Government of Kuwait (through Kuwait guidelines, published in November 2006, are a practical Red Crescent) constructed a seawater desalination document setting out minimum standards for sanitation plant at Ulee Lheu, Banda Aceh. The Government of in context. Switzerland (through SDC) are rehabilitating Banda Aceh’s water treatment plant in Lambaro, with capacity It is recognised that during the emergency phase, 485litres/sec, while the Government of Japan (through many NGOs provided rudimentary sanitation (or even JICS) are rehabilitating the water supply pipelines in no sanitation at all ) for the houses they constructed. Banda Aceh and Gunung Sitoli, replacing destroyed pipe While this was an understandable initial response to networks and rehabilitating and expanding the capacity the disaster, the challenge now is to provide sustainable of pipes elsewhere. The programme has suffered some sanitation for the permanent housing programmes, and delays due to land acquisition. UNICEF and partners have safeguard indefinitely the health of families. constructed a network of water supply pipelines around The sewage treatment plant in Banda Aceh was Aceh Besar, serving communities on the west coast as rehabilitated with the support of the Government of far south as Lampu’uk and as far east as Darussalam.In Japan (through JICA). During 2007 many organisations water supply projects, as with other construction works will be upgrading cess pits and sub-standard septic in the overall reconstruction programme, concerns have been raised about the quality of the reconstruction tanks and providing secondary treatment to meet the work, as inexperienced contractors have worked with new guidelines. This will prevent wastewater entering minimal supervision from consultants. drains, protect water sources and the environment and substantially reduce water borne diseases (the primary Water supply schemes have been proposed and cause of infant mortality). implemented with insufficient consideration as to the availability of suitable water resources long term. It The working group recognises that septic tanks is fortunate that Aceh is relatively well endowed with provision must be accompanied by an effective public water resources, nevertheless problems may arise due health campaign if people are to maintain their tanks and to the competing needs of irrigation, industry, drinking de-sludge them when they fill up in 2 – 5 years’ time.

2006 Progress Report 54 Establishing infrastructure

economies of scale. The major power source is centered Irrigation in North Sumatera, while in Aceh, a number of potential The major programme in irrigation is ADB’s USD 30 energy resources exist but are not yet developed. These million ETESP programme that includes rehabilitation of include geothermal sources (589 MWe), hydro sources about 72,000 hectares of irrigation systems with about (1,482MWe), and coal (571 million tonnes). 64,100 hectares in Aceh and 7,900 hectares in Nias. Major rebuilding efforts in the power sector are The work programme includes the rehabilitation of 21 being undertaken by BRR in Aceh and Nias through irrigation systems that were severely impacted by the Government of Indonesia funding of IDR 446 billion tsunami over an area of about 10,000 hectares. (USD 49 million) through three fiscal years (2005-2007). The process includes participatory planning, design ADB is contributing USD 9.5 million for equipment and construction with farmers and Water User which aims to improve the electricity distribution Associations; there have been 230 meetings so far. system. in total twelve new diesel-powered generators Funding for construction is through the Government, have been purchase and installed across Aceh and Nias and implementation is through the BRR’s Satker and to ensure sufficient electricity service, generating an the district based PPKs, with contracting of work either additional 10.3 MWe of power capacity. Although the through Community based SP3 contracts or through major cities of Banda Aceh and Meulaboh are beginning Local Competitive Bidding (LCB)/ Kerja Sama Operasi to enjoy uninterrupted power supply, restoration of (KSO) with implementation by Contractors with Water power supply to the more rural areas is not expected to User Associations (WUA) and farmer participation. be in full swing until 2007. 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. Power Aceh 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

Aceh and nias two years after the tsunami 55

Improving Livelihoods

2004 Damage 2005 & 2006 progress

• USD1.2 billion damage to productive sector • 69 % of the male labour force and 36 % of the female labour force actively engaged in urban areas. • Projected economic decline of 5% in Aceh; 20% in Nias • 68 % of the male labour force and 45 % of the female labour force are working in rural areas of both Aceh and Nias. • 100,000 small business persons lost their livelihoods • 4,420 fishing vessels have been replaced

• 4,717 coastal fishing boats lost • 6,800 ha of fishponds rehabilitated

• More than 20,000 ha fish ponds • More than 50,000 ha of agricultural land have been rehabilitated destroyed or out of action

• 60,000 farmers displaced

• Almost 74,000 ha agricultural land damaged inflation figures for 2006 are lower, but still higher in Aceh’s Economy Aceh than the national average (6.5% vs. 4.0% nationally). Aceh’s economy relies heavily on oil and gas production, The increase in prices has been mostly driven by rising which accounted for 23% of GDP in 2005. Manufacturing, transportation costs, which have translated in an largely dependent on inputs from cheap gas (e.g. the increase in prices of construction materials, food and fertilizer industry) accounts for a further 20% of GDP. most other tradable goods. Wages have also increased substantially - wages for unskilled construction workers Aceh’s economy on average has seen lower growth rates were on average 30% higher in 2006 than in 2004, than the rest of Indonesia for the last 20 years, partly whilst wages for semi-skilled construction workers caused by the conflict and its negative impact on the were almost 65% higher. The reconstruction effort has Aceh’s Economy 2005 had positive backward and forward linkages for many businesses in Aceh, as well as providing employment 7% Transportation for many Acehnese, but the increasing cost of living will & Communication 12% Trade, be reducing any benefits to the population from the Hotels & Restaurants 22% Agriculture reconstruction effort or higher wages. 3% Building The tsunami has also resulted in a large trade imbalance & Construction 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 13% Services the disruption of most production in the affected areas 23% Mining right after the tsunami. This trade imbalance is currently being financed by international aid and large revenue transfers from the Indonesian government. However, 20% Manufacturing this is not sustainable in the long term and Aceh will have to produce its own tradables to be able to continue

productive sector (agricultural production, manufacturing Economic Growth Rates in Aceh (%) and mining) and investment. The table shows growth rates in Aceh from 2002 until 2005. Not surprisingly, 2002 2003 2004 2005 the economy shows a pronounced decrease in 2005 (down by 13%), although that was primarily caused by Agriculture 2.13 3.27 6.04 -8.88 the slowdown in the mining and quarrying sector and Mining & 66.79 9.86 -24.06 -33.57 the closely linked manufacturing sectors. Some services Quarrying sectors (particularly transport but also trade, hotel and Industries 5.45 1.68 -17.8 -20.53 restaurants) show a strong increase, probably due to the reconstruction effort. More worrying for poverty Electricity & -3.16 16.98 19.53 -1.83 considerations in Aceh, the agriculture sector also shows Water a stark decrease after three years of growth. Building/ 13.28 0.95 0.92 -23.96 These negative growth figures have translated into a Construction decrease in per capita GDP in Aceh, which has fallen Trade, hotel & 2.18 2.46 -2.68 12.23 from IDR 9.5 million (approx USD 1,040) in 2004 to restaurants approximately IDR 8.7 million (approx USD 950) in Transport & 2005, a decrease of 9%. 4.17 3.87 3.67 45.32 communication Since the tsunami, prices in the affected regions have Banking & increased more sharply than the national average. 23.95 30.99 19.45 6.34 Year on year average inflation in Banda Aceh for 2006 Financial (January to September) was 29.3%, compared to only Services 5.95 6.31 20.14 -0.65 16% for Indonesia as an average. These inflation figures are capturing the hike in prices due to the reduction Total 20.07 5.52 -9.63 -13.45 in petrol subsidies of October 2005. Monthly average

2006 Progress Report 58 Improving livelihoods importing at current or even substantially lower levels. Banking and Microfinance To this end, it is important that the provincial and local By the end of year 2005, there were 16 conventional governments develop a common vision about the banks in Aceh, with 207 offices and 20 BPR (Bank economic development of the region. Perkreditan Rakyat), with total assets IDR 16,6 trillion (USD 1,8 billion) and IDR. 13,9 trillion (USD 1,5 billion) in deposits. Private Sector The total growing assets were mostly influenced by Development growing deposit (DPK) at 75%, whereas LDR had a relatively slow growth, because of instability of the BRR, the regional government as well as many donors real sector and increasing interest rates. Comparing to share the vision of turning Aceh into a modern, credit composition in 2004, working capital credit grew globalized and open economy. To that end, in parallel to the most (23%) whilst consumption grew at 16%. Non the Sustainable Economic Development Strategy being performing loans shows a limited increase after the developed, many activities are currently underway to tsunami (from 2.8% to 3.1%). ensure assist local business and private sector to raise up to the challenge and be a main contributor to the 58% of all credit in Aceh’s banking system went to small reconstruction effort in Aceh and Nias as well as to and medium enterprises (USD 0,2 billion). Larger firms provide a better living for the people. 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 Exploring Investment Opportunities economy. They are also major providers of employment, Numerous investment opportunities exist in the region. so their growth and success, with strong backward and The potential sectors of interest include free trade forward linkages in the rest of the economy, is a key and free port zone Sabang, fishing and fishery industry, component of Aceh’s economic development. With the tourism (particulary in Nias), hotel and restaurant current reconstruction effort and its scale, there are business, moulding industry, animal husbandry industry, many opportunities for Acehnese businesses to provide development of plantations and recreational forests, etc. goods and services and at the same time expand and learn But a difficult business environment has hampered the new skills. But often, small and medium enterprises are development of strong and competitive local enterprises constrained by a lack of access to finance. Microfinance and the interest of foreign and domestic investors to and other instruments (venture capital, gap financing) explore available opportunities in these sectors. should be developed to ensure that small businesses Nias suffers from its remoteness for markets, but also have access to finance. investment in its infrastructure offers economic Banking Indicators opportunity. The Law on the Governance of Aceh (LOGA), passed in July 2006, provides Aceh with an opportunity Indicators 2002 2003 2004 2005 to improve the business enabling environment. The BRR, Asset together with the Aceh Investment Promotion Board 7.608 9.880 10.784 16.588 (BKPMD), as well as IFC and Foreign Investment Advisory (IDR trillion) Service (FIAS), is working on promoting investment by DPK drafting a robust investment law that uses the flexibility (deposits) 6.083 7.656 7.952 13.887 and opportunities entailed in the LOGA. Other initiatives (IDR trillion) that will assist in strengthening the local private sector is Credit the Investor Outreach Office (IOO), which will provide 1.578 2.123 3.201 3.634 investment support services and a monthly event (The (IDR trillion) Business Gathering) that facilitates networking as well as LDR – loan information sharing and discussion among the business to deposit 25,94 27,73 40,25 26,17 community. ratio (%)

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

(Indicative exchange rate USD 1 = IDR 9,150)

Aceh and nias two years after the tsunami 59 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: i. an internally-integrated market and open economy; ii. a friendly business environment; iii. a private sector driven economy; iv. highly developed transport facilities; v. a well-trained and educated workforce; vi. an environmentally balanced growth path; and vii. 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.

2006 Progress Report 60 Improving livelihoods

The BRR financial and investment capital institutions • advocacy and adoption of ‘best practices’, including sector is focusing on the development of SMEs through the group lending system drawn from Grameen assisting Micro-Financing Institutions (LKM). The Bank model, programme was initially in 2005 oriented towards the • dissemination of latest technologies in emergency phase, with disaster victims as the target microfinance, beneficiaries. In 2006, the programme has broadened • training for microfinance loan staff of BPR, beyond the tsunami and earthquake inflicted areas into all districts and cities across Aceh. It has also increasingly • complementary re-financing registered and licensed addressed the need of capacity building and building as a microfinance innovation fund (MIF). The BPRs networks, especially through the Aceh Micro-Finance that participate in this project have already reached Center (ACMC). more than a 1,000 women client savers/ borrowers, and USD 65,000 in total microfinance loans ADB has a large project to assist Acehnese banks to disbursed, as of end of October 2006. Repayment provide credit to those smaller businesses. ADB started is 100%. preparing the Livelihood & Microfinance Sub-Project Many small enterprises are agriculture-based, and (LMS) in late 2005. The Microfinance component was farmers also need access to credit facilities. Programmes designed to deal with the formal financial sector and and instruments should be extended to ensure that this registered microfinance institutions, collaborating with group is not excluded, and particularly to help to address the existing “people’s credit banks” (BPR) in Aceh, 20 in total, eight of which are private-owned. Several BPRs rural poverty. were directly damaged and affected by the earthquake and the tsunami, others indirectly affected. Consequently, Business Environment collaboration with the BPRs included rehabilitating and Often, a major challenge in developing local private assisting them to further normalise their operations, and business activity is the lack of skills and capacity in business at the same time, providing the capabilities, skills and basics. Several institutions are assisting businesses technologies to enable the BPRs to provide accessible directly to address these issues. An example of this is financial services and products that are responsive to a pilot programme implemented by the International the rehabilitation and reconstruction needs in NAD and Finance Corporation (IFC). Approximately 500 people - Nias. Some of the activities undertaken include : 35% of them women- have participated since April 2006.

Aceh and nias two years after the tsunami 61 Training has consisted of core consulting skills, financial food crops and estate crops. Currently poverty in management, and PC skills for businesses. rural areas is having a negative impact on health and Many actors are also assisting the private sector to productivity. The agriculture sector has potential to come together in business associations and sectoral make enormous inroads into poverty reduction, but associations, such as the NCBA Coffee Forum. Such this will not happen without massive investment into associations with similar interests and problems have a modernising agriculture. stronger voice than individual businesses, at the same time as offering economies of scale and coordination Agriculture opportunities for activities that individual businesses Currently agriculture (including fisheries) accounts for may not undertake on their own. Assistance is being 22% of Aceh’s economy, and this contribution is expected provided to organise those business and sectoral to increase as oil and natural gas reserves decline. The associations, although their sustainability would require contribution to GDP on Nias is even higher, with the that members increasingly shoulder the costs. absence of revenues from oil and natural gas. Agriculture Business associations can also be useful in advocating is also the main source of employment providing work for a friendlier business environment, that minimises for over 50% of the labour force. Modernising agriculture red tape and bureaucracy that impedes private sector and connecting farmers, both women and men, to development. Assistance is being provided to a variety information, extension services, credit, processing, and of private sector actors (chamber of commerce, markets are seen as the key to poverty alleviation and sector associations) and the government to develop sustainable development in Aceh and Nias. ‘best practice’ solutions, such as ‘One-Stop-Shops’ for registration of new businesses and a streamlined and Over 50% of the farm workers in Aceh and Nias are transparent tax administration. As these associations women, however women represent a lower percentage grow more vocal, other areas that may be constraining of farm or land owners, hence have less decision making private sector activity should be addressed, together power. Gender equity needs to be mainstreamed with the government and the assistance of donors. throughout the rehabilitation and reconstruction process in the agriculture sector to maximise benefits and ensure the overall success of programmes and Rural initiatives to benefit women and families. Livelihoods Conflict, 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. 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,

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

2006 Progress Report 62 Improving livelihoods

Until 2004, the agricultural sector had shown mixed The 2006 programmes of ADB, BRR and FAO are laying results, with many of the main crops decreasing the foundations for livestock improvements, with direct production (e.g. soybeans, chilies or banana). Among financial assistance to livestock groups (revolving funds) agricultural products, the majority (98%) is coffee and and support for the rehabilitation of support services exports of other agricultural products, like cocoa, vanilla (extension and training facilities, Integrated Animal Health and patchouli, are constrained by small-scale production Centers, artificial insemination, control programme for and volatile output. Processing of agricultural goods is bird flu, livestock markets, meat markets and abattoirs). rare and many Acehnese products (e.g. rice, coconut) are processed in North Sumatra and sent back to Aceh for Estate Crops consumption, robbing Aceh of much needed value added Most estate crops in Aceh and Nias are grown by activities and jobs. Most farmers in Aceh and Nias have smallholders, and contribute to family livelihoods, as well mixed livelihoods, consisting of various combinations of as to GDP (4.5% in Aceh). food crops, livestock, estate crops, and fisheries. During the conflict, it was not safe for farmers to tend Food Crops their estate crop gardens, and many plantations (total 390,000 hectares) were left unattended and largely Food crops provide the life line for rural families living unproductive. The tsunami damaged an additional 28,000 below the poverty line while contributing significantly hectares of estate crops (coconut, rubber, oil palm, cocoa, to GDP (8.7% in Aceh). The tsunami caused damaged to etc.). To date, about 10,000 hectares of estate crops have over 70,000 hectares of farmlands. To date, about 50,000 been rehabilitated/developed under the joint BRR/ADB hectares of fields have been rehabilitated and brought programme, along with the rehabilitation of important back into production, through cash for work, community support services (extension and training, office facilities, contracts, material support for seeds and fertilisers, laboratories). In spite of these investments, there is still and provision of agriculture equipment. This is one of a huge need for rehabilitation and reconstruction in this the major success stories of the rehabilitation process, sub-sector. and reflects the combined efforts of the communities, government agriculture services, BRR, ADB, FAO, and Fisheries numerous NGOs. Rehabilitation and reconstruction in the fisheries sector However, thousands of hectares of severely damaged will be essential to restore productive assets, reduce farmlands remain unproductive, and over half the farmers poverty, and develop the potential of the fisheries in rural areas are still living below the poverty line. Thus, sector to contribute to GDP and many thousands an urgent programme is required during the period 2007- of rural people. Whilst rehabilitation of the fisheries 2011 to rehabilitate the remaining farmlands or develop sector continues to make good progress during 2006, alternative livelihoods, and to develop the potential of the need for substantial further investment is becoming the food crops sub-sector for alleviating poverty and increasingly clear. Estimates suggest USD 900 million is contributing to GDP. required during the period 2007-2012 for rehabilitation and reconstruction of the fisheries sector, and to develop Livestock the potential of the fisheries for alleviating poverty Livestock raising is mainly carried out by smallholders, and contributing to GDP. Such investment is expected both women and men, and contributes significantly to to generate substantial returns with gross revenues in the livelihoods of most farming families. Contribution to excess of USD 1.5 billion over a five year period. GDP in Aceh is about 5.5%, equivalent to that of fisheries, and there is considerable potential for expansion. Capture Fisheries Capture fisheries provided food and income for many The tsunami devastated the coastal livestock populations, poor coastal families before the tsunami. The sector including the loss of 40,000 cattle, 40,000 buffalo, 58,000 was dominated by small-scale fishers, and during 2006 goats, 9,500 sheep, 1,300,000 chickens and 570,000 ducks. progress continue to be made in replacement of lost As a result of the conflict and tsunami, there is now a shortage of livestock in Aceh and livestock products Pre-tsunami capture fishery values are estimated as USD 177 million, of which around 68% comes from have to be imported from outside Aceh, resulting in the 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 highest meat prices in Indonesia: beef USD 7.60/kg and 20%/year increase over 5 years. Pre tsunami farm gate value of aquaculture produce in Aceh was USD goat meat USD 8.70/kg. 56.5 million. Investment is expected to lead to farm gate values greater than USD 100 million/year.

Aceh and nias two years after the tsunami 63 small vessels with over 4,000 new boats delivered by improving and managing the cold chain, fish processing BRR, MMAF, other Government agencies and donors, and ice plants, markets, cooperative development, training, replacing a high proportion of the lost vessels on value additions to fish products and other infrastructure mainland Sumatra. so that fishing communities can get greater rewards from their catch. 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 Aquaculture for livelihoods. Many owners, skippers and crew of larger Progress has been made in aquaculture rehabilitation, vessels still remain unemployed usually through lack of by BRR, ADB, FAO, UNDP and NGOs. Around 6,800 operating capital which may have previously come from hectares or around 25% of the damaged ponds and outside the community, or indeed district. Safety and canals along the north-east coast and west coasts have quality of boats remains a concern, and in the west coast been rehabilitated by end of 2006, although many ponds islands of Nias, Simeulue and the Banyak islands, many are still not operating at pre-tsunami levels. Progress has poorest fishers still await replacement of small boats for also been made during 2006 in rehabilitation of shrimp simple subsistence fishing. hatcheries, and various small-scale aquaculture activities such as marine fish cages, and grouper and milk fish Concerns that coastal fishing will sooner or later nursing. Further investment is essential to rehabilitate the become unsustainable, as elsewhere in South East Asia, remaining damaged ponds and canals, as well as rebuild have grown during the year. Detailed resource surveys and improve supply and marketing chains to restart this required to scientifically substantiate the condition of important coastal economic activity. Investment is also the stocks, as a basis for rational management measures needed to strengthen services for aquaculture farmers, are increasingly needed for subsistence and commercial develop capacity among farmer groups for better fleets. Improved capacity of government and fisher management and improve access to markets. 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, 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.

2006 Progress Report 64 Improving livelihoods

The aquaculture sector, producing valuable and sought Fisheries Infrastructure after products such as shrimp, marine fish and seaweed, The earthquake and tsunami caused major damage to has major potential to contribute to the economy of Aceh fish landings, jetties, harbors and fisheries infrastructure. and improvement of livelihoods. The coasts of Aceh and The shallowing of many estuaries and river entrances Nias have many suitable areas for growth of marine and continues to make access to landing places more difficult brackish water farming, and the inland areas substantial and dangerous, and the coastal environment remains potential for freshwater fish farming. Additional public unstable in many areas. Good progress with support and private investment in farming, servicing institutions, from BRR, ADB, UNDP and others has helped restore supply chains and market access will be essential to tap some of the damaged fisheries infrastructure during the development potential of the aquaculture sub-sector, 2006, but the fisheries infrastructure remains severely and its contribution to rural livelihoods. under funded.

Aceh and nias two years after the tsunami 65

Funding the Recovery Financing in 2006 The response from the international community to the tsunami was unprecedented. Adding together the It is important to note that financing needs for Government of Indonesia’s contribution with that of reconstructing Aceh and Nias were calculated based NGOs and Donors, the overall expected spending on on data from early 2005 . Furthermore, they are based reconstruction is approximately USD 7.1 billion. By end on the concept of reconstructing to the level of what of October 2006, USD5.8 billion worth of projects and existed before the tsunami; before the tsunami, Aceh had programs had been allocated to the reconstruction a 30% poverty rate. effort in Aceh and Nias. This is more than 80 percent of To find the core minimum needs the lowest figures of the anticipated total reconstruction programme. Now, the Damage and Loss assessment conducted in January the Government of Indonesia, donors and NGOs are 2005 were put together with Bappenas Masterplan of almost equal in size with around USD 2 billion each.

Reconstruction Need and Allocated Fund

8 - Upgrading facilities in Tsunami- and potential soft loan (0.7) Committed DONORS earthquake- affected areas Building back grants (0.4) but not 7 - Post-conflict reintegation and better (1.9) allocated (2.0) development programs NGOs (0.4) GOI ( 0.5) 6 Inflation (1.2) 5 NIAS (0.4) DONORS (2.1) 4

NGOs (1.6) 3 Damage and Rebuilding (6.1) Already allocated to Loss Assessment 2 specific (4.5) projects (6.0) 1 GOI (2.2)

0 Needs Programme

Source : BRR & World Bank Staff Calculation

April 2005. Then for each sector, an addition was made There is an opportunity to “build back better” but rising on the assumption of 15 percent operational cost and inflation makes the reconstruction programme more 20 percent inflation. There a growing opinion amongst expensive. With USD7.1 billion in resources and USD those working in Aceh and Nias that a more up-to-date 6.1 billion in needs, additional resources of about USD1 assessment of financing needs may be required based on billion could be used to raise Aceh out of a poverty level changes in operational cost, inflation, and other dynamics of 30% and also to invest in long-term programs. Post on the ground, as we move into 2007. tsunami, the region has experienced high inflation, as high The financing needs for reconstruction in Aceh and as 40% at its peak in January 2006, compared to 23% in Nias are estimated at USD 6.1 billion. This is comprised Medan and 17% nationwide. This has led to an increase of damages and losses from the tsunami estimated at in the early estimates of the cost of reconstruction, USD4.5 billion, the March 2005 earthquake in Nias and a reduction in the additional resources available for added USD400 million, and an additional USD1.2 billion “building back better”. has been included for rising inflation.

2006 Progress Report 68 Funding The Recovery Sectoral the current allocation of funds already programmed by Allocations the Government and donors will not meet the minimum needs against the original damage assessment in some and Gaps critical sectors, such as transport and environment. The The diversity and preferences of the players has lead to a extent of rural poverty indicates other major funding mixed focus on the sectors. The Government of Indonesia gaps in terms of broader development. has been focusing on housing and local government On the regional allocations, areas around Banda Aceh development. Donors are dominant in transport and the and Aceh Besar have more than adequate resources community, whilst NGOs have been playing a leading role to rebuild, whilst other areas such as a large parts of in housing, health, water and sanitation, and livelihoods. the West Coast, south of Meulaboh, and the north-east Critical gaps remain across sectors and in regional areas. coast of Aceh (Kab. Aceh Timur and Aceh Tamiang) still Though sufficient funds have been pledged overall to have inadequate allocations to meet even 50% of their support the rehabilitation and reconstruction programme, needs.

Sectoral Allocations

Housing

Transport

Health

Governance & Adm

Education

Community, Culture and Religion

Enterprise

Water & Sanitation

Flood control, Irrigation works Other Infrastructure

Agriculture & Livestock

Fisheries

Environment

- 200 400 600 800 1,000 1,200 1,400 1,600 US$ Million

GoI Multi/Bilateral NGO

Source : BRR & World Bank Staff Calculation

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)

Aceh and nias two years after the tsunami 69 FUNDING AND NEEDS ACEH AND NIAS ISLANDS

KOTA SABANG 74

190 KOTA BANDAACEH 117 ACEH BESAR

KOTA LHOKSEUMAWE BIREUEN 67 67 69 55 ACEH PIDIE UTARA 62 BENER ACEH MERIAH JAYA 38 ACEH BARAT ACEH TIMUR ACEH TENGAH KOTA 86 72 LANGSA ACEH NAGAN TAMIANG RAYA 42 53

ACEH GAYO LUES BARAT DAYA 42

ACEH ACEH TENGGARA SELATAN

Rasio Pembiayaan Atas Kebutuhan (%) > 125 101 - 125

76 - 100 SIMEULUE 51 - 75 68 Below 50 82 Not Affected SINGKIL District Boundary

NIAS 45

NIAS SELATAN 40

0 25 50

Kilometers Skala peta 1:500.000 pada kertas ukuran A3 Tanggal pembuatan peta: 01 Desember 2006 (AM) Sumber Data Data rasio kebutuhan: World Bank, 1 Desemeber 2006 NIASNIAS Batas administrasi: BPS, 2006

2006 Progress Report 70 Funding The Recovery Disbursements and The peak in the reconstruction effort in terms of Allocations disbursements is yet to come. For the planned Disbursements have been steadily rising since November reconstruction period (2005-2009), the average 2005 and now stand at about USD2.2 billion. On average disbursements rate is expected to be USD1.6 billion in 2006, disbursements have been above USD100 million per year (approx. USD130 million per month). The per month, which is substantially higher than in 2005 disbursements to date have averaged around USD110 but below expectations. The disbursement rates from million per month, suggesting that there will be a higher allocated funds vary significantly amongst key players: rate of activity in the years ahead. However, as a group, NGOs have disbursed 60%, GoI 28% and multilateral/ NGOs are showing 60% disbursements indicating that bilateral donors 31%. they have in 2006 passed their peak in delivery.

Sector Disbursment Vs Allocated Project

Health Agriculture & Livestock Water & Sanitation Education Energy

Environment Fisheries Housing Community, Culture and Religion Governance & Adm (incl. land) Enterprise Flood control, Irrigation works

Transport Communications

Other Infrastructure Bank & Finance 0 10 20 30 40 50 60 70 80

Source : BRR & World Bank Staff Calculation

Disbursements and Allocations

8,000

7,000

n 6,000 GOI

5,000

4,000 NGO

US$ Millio 3,000

2,000 28% Donor 38% 1,000 60% 31% 0 Pledges Allocated Disbursement

Source : BRR & World Bank Staff Calculation

Aceh and nias two years after the tsunami 71 The Challenges the years ahead. With current funding being disbursed Ahead more slowly than expected, the peak yet to come, and Although there has been much progress and a mismatch in allocations against sectoral needs, there enormous effort, the challenges ahead will continue is an opportunity for some of the larger donors to to be demanding. With more than 80 percent (USD close the sectoral funding gap in 2007 to ensure that 5.8billion) of funds already allocated to projects there the reconstruction programme appropriately meets the is less scope for major adjustments to match needs in needs of the regions.

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

Contribution Pledge amount Cash Received Source Agreement signed USD million USD million USD million

European Commission* 254.17 254.17 53.27 Government of Netherlands 100.00 100.00 100.00 Government of United Kingdom 48.25 10.00 10.00 World Bank` 25.00 25.00 25.00 Government of Denmark 18.03 18.03 18.03 Government of Norway 17.96 17.96 17.96 Government of Canada 11.04 11.04 11.04 Government of Sweden 10.44 10.44 10.44 Asian Development Bank 10.00 10.00 10.00 Government of Germany 10.00 10.00 7.40 Government of United States 10.00 10.00 10.00 Government of Finland* 10.16 10.16 5.56 Government of Belgium* 10.16 10.16 2.55 Government of New Zealand 8.80 8.80 4.40 Government 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

2006 Progress Report 72 Funding The Recovery

Public Financial Management

A Public Financial Management (PFM) survey For much needed improved planning and has been conducted across Aceh to evaluate budgeting and for increased transparency and financial management capacity in district and city accountability, action must be taken to improve administrations. The PFM results provide a snapshot financial management capacity throughout local of relative strengths and weaknesses in public governments in Aceh. A first, crucial, step is for financial management. The framework is divided into local governments to ensure they have proper nine strategic areas identified as key determinants working regulatory frameworks in place followed of effective public financial management at local by working mechanisms to promote participatory government level. Preliminary results show a wide planning. Clear accounting and reporting divergence between administrations and between procedures need to be put into practice along strategic areas within an administration. with the establishment of an independent and transparent monitoring and oversight mechanism with powers of enforcement. PFM scores for 14 sites Average scores for 9 strategic areas

Banda Aceh 100 Regulatory Singkil Aceh Jaya framework 80 100 Bener Meriah Aceh Besar External audit & Planning & 60 oversight 80 budgeting 40 60 Langsa 20 Aceh Barat 40 Asset Cash 0 management 20 management 0 Aceh Tengah Nagan Raya

Public debt & Sabang Aceh Timur investment Procurement

Bieruen Aceh Utara Internal audit Accounting & Pidie reporting Overall, relative weaknesses tend to be in the areas of public debt and investment (achieving an average Local governments need to be involved as much score of only 29%), external audit and oversight as possible in the implementation of BRR projects (37%) and local regulatory framework (38%). to develop local government capacity. The results Planning and budgeting scores only 44% across the can be used to monitor progress in public financial 14 sites surveyed, indicating a clear need to improve management capacity, signaling both the ability capacity in this area given the huge increase in funds if and willingness of local governments to play a medium and long-term development goals are to be larger role in the design and implementation reached. The highest average scores were achieved of development projects financed by central for procurement (61%) and internal audit (56%). government and external partners 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).

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).

Aceh and nias two years after the tsunami 73

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, BRR regional heads in particular need to show greater including managing information and strengthening links leadership in coordination in housing, including where and communications between stakeholders. the desire to accelerate housing implementation has resulted in BRR housing staff stepping in too fast to The leadership for the regional programme was take over the beneficiaries and sites of NGOs whose established by appointing BRR regional heads for the six implementation has appeared slow. The challenge for regions. However, while BRR has recruited staff and the coming year for BRR will be to achieve the right is attempting to strengthen the capacity and delegated balance between fulfilling the mandate of enhancing the authority of BRR regional offices, the progress for capacity and capability of local governments to assume establishing Joint Secretariats has been slow, with BRR at greater coordination and planning role and the need to the regional level preoccupied with the implementation demonstrate significant and measurable progress in its of its own programmes, most notably housing own reconstruction programmes. 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.

2006 Progress Report 76 Managing the Reconstruction

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.

Aceh and nias two years after the tsunami 77 Sectoral Coordination Coordination In key sectors, some of the regional sectoral working with groups have become much more effective with active participation and leadership by local government. In Stakeholders Meulaboh, Cipta Karya leads the shelter and settlement From the start of the programme implementing partners coordination at the district level. It chairs the bi-weekly have been willing to coordinate. However the scale of coordination meetings, updates the activity matrix, and the programme, and the number of actors, meant that verifies the beneficiary lists with support by UNORC coordination has not proved easy. All parties have and LGSP respectively. Information from KCIM feeds into learned that coordination means more than sharing the district level shelter and settlement coordination. information, it means investing significant staff time to Shelter and settlement coordination has been expanded the ongoing coordination process, and assigning those to include infrastructure and water and sanitation with staff with the authority to make operational decisions. the aim of establishing linkages the shelter reconstruction Experience from 2005 through 2006 has helped partners and the provision of utilities such as electricity and to improve the coordination process and introduce water. In future, it is necessary to establish closer linkage more appropriate mechanisms. between the livelihoods sector with the settlement and infrastructure to ensure that a lack of livelihoods Coordination at the Sub-District Level opportunities does not prevent people from moving The coordination and cooperation amongst all into newly built houses. 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 Information Implementation Mechanism (KCIM). UNORC has led the management introduction and facilitation of stakeholders in affected areas in and around Meulaboh and Calang. Chaired A highlight in 2006 has been the successful transition of by the camat and participated by NGOs, mukims and the HIC/UNIMS geographic information system to BRR heads of villages, KCIM is deemed as the optimal level through the establishment of the Spatial Information to collect data and information, whereby identifying and Mapping (SIM) Centre. BRR now possesses the constraints to recovery process, gaps and overlaps, and spatial data capacities to support decision making and resolving these with locally available capacities where coordination through the development of maps, data possible. In this regard, the KCIM is a critical component packages and digital format products. The SIM Centre, of the regionalisation strategy. Other organizations such funded by the government of Norway, provides an as YIPD, LGSP and AIPRD/LOGICA are also partnering invaluable service to the wider recovery community in in this effort. The KCIM is now being rolled out to the support of their recovery and reconstruction projects. rest of the affected areas, including the North East coast The SIM Centre is also building the capacity of Provincial districts, Kota Banda Aceh and Nias. To assist the local Government Agencies to use spatial information for authorities, notably the camats, in making informed planning and decision making, with the eventual aim of decisions, the standardized Kecamatan Reporting facilitating the transition of this capacity out of BRR at Systems (KRS) has been introduced by the UNORC the end of term. Information and Analysis Section (UNORC IAS), as part The publicly accessible RAN database, BRR’s centralized of the UN support to the BRR information and data information system, is based on voluntary NGO and management efforts. It is envisaged that the data and agency information contributions. During 2006, the information collected through the KCIM also feed into database has been populated with information on district and provincial level planning and decision making. more than 5,000 projects. With continued technical This in turn will help in development and implementation improvements, the RAN database has become a repository of practical policies. 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.

2006 Progress Report 78 Managing the Reconstruction

However, the RAN relies on voluntary contributions, The newly established UNORC Information Analysis hence the strong involvement of stakeholders is needed Section (IAS) is supporting BRR in these endeavours. to ensure data quality and validation. This stakeholder UNORC IAS provides an increased capacity to link involvement depends on user-friendliness of the system disparate information sources and conduct analysis that and a focus on priority areas and products to satisfy informs decision-making. UNORC IAS has developed key stakeholder information requirements which is a strategic partnership with local government institutions, continual challenge. notably BPS (National Statistics Agency) and BPDE (Agency for the Management of Electronic Data), to BRR’s expansion from a solely coordination role to build long term capacity in information management and implementing recovery projects has heightened the need analysis. for accurate data and progress information. Stringent internal reporting mechanisms and specifically designed UNORC IAS is also supporting BRR with its commitment databases complement BRR’s efforts to keep abreast with to provide relevant information for the Tsunami developments. The challenge ahead is to integrate the Recovery and Impact Assessment and Monitoring System various data systems to provide a consistent recovery (TRIAMS). In May, Indonesia and the other major tsunami overview of off-budget and on-budget efforts and help affected countries agreed to provide a common set of identify remaining gaps. output and outcome indicators on recovery. The end of 2006 figures for Indonesia are include in the annexes of this report. Information Analysis Section (IAS) The establishment in 2006 of BRR regional and district Recognizing the urgent need to improve analysis offices and Joint Secretariats with the local government to enable effective policy making, BRR, UNICEF and UNORC has made the provision of timely and and UNORC signed a letter of agreement on 19 accurate data on recovery at the sub-provincial level June 2006 to establish the UNORC Information a priority. To support this, Camats from 25 tsunami- Analysis Section (IAS). UNORC IAS is consolidating affected subdistricts agreed in September to hold regular available data sets from BRR, BPS (statistics bureau), coordination meetings with organisations working in line ministries and other partners within a results- their areas and to adopt a standardised reporting format. based indicator framework to enable comparative The support of recovery organisations and the Joint demographic trend analysis on recovery. The Secretariats has enabled this process to begin to collect objective is to ensure that stakeholders can make data on recovery and to empower local government informed and timely adjustments to their assistance involvement and ownership. Moving forward, the joint programmes by tracking the rate and direction of secretariat offices play a key role in consolidating bottom recovery and identifying unmet needs and inequities. up progress and needs data to inform effective policy This activity adopts a holistic approach by focusing on making at the local level. 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 Tim Terpadu and Nias. The activity will ensure sustainability and strengthening of local capacity in data collation, External analysis and reporting through partnership with government agencies, including BRR, BPS and BPDE Services Team (electronic data management bureau). UNORC IAS Tim Terpadu, translated as “external services”, was will also continue to support and reinforce local established in December 2005 as a support unit within government information management required BRR that combines a range of government services to for the overall recovery planning framework. assist foreign nationals and organisations participating Furthermore, the UN will commit itself to continue in the recovery programme of Aceh and Nias. The unit its support for the implementation of the Recovery comprises representatives from directorates of various Aceh Nias (RAN) database of BRR to promote and government ministries, including the Department strengthen the Government’s coordination and of Industry, Trade, Finance, Law and Human Rights, monitoring capacity. Foreign Affairs and the Department of Manpower and Transmigration.

Aceh and nias two years after the tsunami 79 With the exception of agreements between the participants in their procurement strategies and supply- Indonesian Government and the United Nations and chain management. The directorates for Trade and other international organizations domiciled in Indonesia, Customs and Excise are responsible for this division there are no Indonesian laws that specifically regulate within Tim Terpadu and their principle activity is to the presence of foreign nationals and organizations in provide advice and support for the procurement of Indonesia for recovery assistance purposes. The Tim materials, especially with respect to imported goods Terpadu is the first facility of its kind, established to and the transportation of goods between provinces. In address this situation and facilitate the processing addition, they assist local authorities in determining tax and approval of various government administrative exemptions. requirements through a ‘one-stop shop’ facility. The inordinate amount of materials required for the The international response to the tsunami and reconstruction programme has stretched the logistical earthquakes in Aceh and Nias has resulted in thousands capacity of many organisations working in Aceh and of foreign nationals and many international organisations Nias and Tim Terpadu operations now include help desk working in Indonesia. Under normal circumstances, facilities to assist in procurement. the administrative procedures for foreigners and Tim Terpadu is providing services essential to the international organizations working in Indonesia require rehabilitation and reconstruction of Aceh and Nias and a significant period of time to process and can be costly. by doing so it is exemplifying the cooperation between The de-centralised government facilities offered by Tim the Government of Indonesia and the international Terpadu have streamlined these processes and during community. Within a short period of time it has this year alone more than 7,000 individual immigration established a model of inter-governmental cooperation requests have been processed and it is anticipated that the operational procedures Apart from the administrative requirements for it has developed will assist in the future formation foreign nationals and organisations working in Aceh of a governmental response portfolio to disaster and Nias, Tim Terpadu has also been responsible for management. The unit’s strategy goes even further. With providing operational assistance and concessions for BRR’s exit strategy planned for 2009, Tim Terpadu will the importation and transportation of equipment and gradually normalise its operations to ensure, upon its materials for the rehabilitation and reconstruction disbandment, the hand-over of its operational procedures programme. This is one of the most challenging aspects to local government departments in Aceh and Nias. of Tim Terpadu’s operations as it relates to logistics and is subject to the level of planning and organisation of Logistics, Summary of Tim Terpadu Services supply chain For foreign nationals: and shipping • Registration of foreign nationals services • Visa authorisation • Multiple and re-entry permits Many aspects of logistics continue to present major challenges to those engaged in the rehabilitation and • Temporary stay permits recovery effort. The programme has enjoyed significant • Extension of visitor permits successes in the areas of timber and the introduction • Exit permits of the United Nations World Food Programme For organizations: Shipping Service. Other key issues include the impact of infrastructure projects on the supply chain, housing • Registration logistics, and an assessment of the logistics of non- • Tax exemptions governmental organisations engaged in construction • Advice and support for: projects. - Procurement of materials The impact of infrastructure projects on the supply - Importation of goods chain has been a significant unknown factor. To resolve - Transportation of goods this, BRR has hired an experienced civil engineer as a technical adviser to identify all infrastructure projects

2006 Progress Report 80 Managing the Reconstruction with their relevant timelines to determine both the there is potential for increased strains on the transport supply chain impact and the ability of the transportation system. infrastructure to accommodate all requirements. This NGOs have taken up a large part of the housing burden project commenced in June 2006 and is expected to and BRR is particularly grateful for their commitment conclude in December. to this. Because of the number of houses they have Housing logistics continue to remain a challenge. BRR volunteered to build, the demands on them are great. Housing has set up a depot system with a commercial There have been concerns about NGOs logistical contractor to supply construction materials to all capacity and ability to manage their supply chains. BRR those engaged in the recovery process. The transport has had technical advisors for part of this year to work portion of this is relatively clear and straightforward. with the NGOs who need assistance in an effort to Logistical planning for houses to date has focused on the enhance their planning and logistics capacities. traditional type of house which is a worst case scenario as that is the most demanding based on overall weight Timber supply and volume of materials. BRR has used this scenario Timber supply has proved problematic for Aceh and Nias to determine port throughput capabilities and believe reconstruction programmes. Problems have occurred they can move the material necessary but will encounter in the areas of administration of timber importing and congestion in some ports. It is vital that the housing transportation, lack of sufficient supplies of legally and materials be moved as soon as practical because as the sustainably produced timber, timber quality, appropriate infrastructure projects are started in 2007 and beyond, timber usage, and price inflation. In the last year, BRR has implemented several initiatives to address these issues:

Building in Remote Communities in Nias • BRR has established the Timber Help Desk (THD) that is attached to Tim Terpadu. The THD has Remote communities are often left behind in recovery played a key role in providing timber information because of the incredible logistical challenges involved for relevant stakeholders or users that are dealing in building. In order to serve the communities of with reconstruction and rehabilitation in Aceh and remote villages which are inaccessible by road, HELP Nias. The THD organised a Timber Trade Show held transports building materials by canoes and small in Medan on 19 – 20 June 2006. It prepared a list of rafts through shallow rivers. verified domestic timber suppliers and brochures with information on timber administration The March 28, 2005 earthquake dramatically changed procedure, timber quality, and timber suppliers. the geography of Nias Islands. Muzoi Village, which has no connecting road, lost boat access when the • Tim Terpadu provided streamlined procedures earthquake elevated its nearby river. Now, only for the administration of timber importation canoes and rafts can travel up the river. and transportation working closely with the Departments of Customs and Forestry. Tim In order to transport materials into Muzoi Village, Terpadu also worked closely with GOI, UN HELP carved a one-kilometer road through Agencies and NGO’s whenever requested to surrounding forest to allow its four wheel drive resolve administrative problems. trucks to reach the village river. From the soft river • FAO, MDF and AIPRD sponsored the Timber bank, without the help of a pier, building materials Advisers who provided technical assistance to BRR are then shifted onto canoes or rafts which travel Housing, Tim Terpadu and the THD. The activities of down the shallow river. Loaded with concrete and the advisors included preparation of documentation, other building supplies, this method has proven to timber needs survey, workshops with stakeholders be a dangerous but necessary course. These canoes on needs and concerns, and liaison with Ministry of and rafts dock at four different communities of the Forestry and local government. village along the river, unloading supplies. These efforts have resulted in the elimination of the HELP arrived in Nias following the December 2004 “timber problem” as it was once known. Challenges earthquake. When the March 2005 earthquake hit Nias, remain, but there is now an effective mechanism in place HELP began its shelter programme including in remote to provide assistance to NGOs, contractors and others areas of the island. who are engaged in reconstruction and rehabilitation projects

Aceh and nias two years after the tsunami 81 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 ofthe 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.

2006 Progress Report 82 Promoting Quality, Integrity and Equity However, a widespread lack of technical understanding of Quality seismic design and construction detail, poor building skills assurance and a lack of safety culture lead to irresponsibility on the part of building contractors in assuring a safe building. Quality assurance includes development of systems Too often cutting costs in construction takes precedence and policies to oversee quality control of individual over compliance. Close supervision can alleviate some projects and outputs. Some quality shortfalls in the problems but contractors must be managed, taught, reconstruction programme relate to lack of skills, and obliged to meet the quality standards. Some of the supervision or management intervention in delivery. major NGOs in particular realised these weaknesses Attempts to manipulate tenders, and compromising or early on and adjusted their delivery methodology to put ‘cutting corners’ on the quality or quantity of products in place stronger systems of monitoring combined with used in project implementation, represent some of the extensive training of site supervisors. From anecdotal ways in which the quality of work may be undermined. evidence implementing partners consider that quality and Some issues of quality clearly relate to ethics and the systems have improved. Particular action taken has been potential misuse of resources. against common examples of poor quality such as the use of too few or even a single rod as concrete column Initial BRR work, that started in 2005 and continued until reinforcement; concrete columns cast in stages reducing August 2006, in the area of quality assurance included the concrete strength considerably; non-compliant concrete team of professionals contracted for the Procurement mix materials and poor mixing, again reducing concrete Quality Assurance and Monitoring (PQAM) programme. strength; using smaller diameter reinforcing bars; poor The team was deployed to review the tendering quality bricks, not tied into supporting structure so at processes to identify areas of concern and to oversee risk of collapse. These examples in particular exacerbate the monitoring and delivery of government funded the risk to human life in the event of an earthquake. construction projects. Various weaknesses identified Experienced implementing partners have held ranged from poorly managed tender processes through training workshops on complying with building codes, to lack of remediation of works. The delivery units workmanship standards, seismic design and construction (‘Satker’) employed to deliver the government projects detail in response to the widespread lack of technical unsurprisingly also suffered from a lack of experience in understanding. NGOs less experienced in construction dealing with the scale of the projects, and in construction have adjusted by investing more in professional faced similar constraints to that of other implementing engineering expertise. The recognition that, whilst many partners in logistics, materials supply and managing NGOs have strengths in community based participation, poorly performing contractors. Since the conclusion of the scale of physical reconstruction work was beyond the work of the PQAM team a number of institutional their capacity, has been a difficult lesson. However, for arrangements have been put into place, including a number of partners it has led to the engagement of Procurement Services and Quality Management units private sector consultants and major contractors, which under the management of the BRR Chief Operating is resulting in more efficient and improved standards in Officer. NGOs have similarly faced problems in construction. delivery quality, and several have taken significant steps Implementing agencies including BRR have employed in employing larger or more experienced contractors, additional local supervision consultants and trained employing staff and different systems for procurement, community members in identifying faults. BRR Nias, and where necessary taking decisive action in revising or for example, has trained supervision consultants on the re-doing work. Nias Building Code, in aspects such as good design and construction principles. The supervision consultant must Construction Quality disseminate the Code amongst beneficiaries so that they, In Aceh and Nias many structures were severely damaged in turn, will be better able to monitor the construction because most of the buildings were not built to withstand of their own homes. Beneficiaries are equipped with earthquakes, despite the region’s predictable and frequent a construction checklist and house unit blueprint, and earthquake activity. Rehabilitation and reconstruction supplied with construction complaint forms in the village must comply with building codes in design and practice office to record problems. A technical field officer will in order to provide appropriate earthquake resistance regularly visit the village, respond to any complaints, and and disaster preparedness. conduct regular village meetings to monitor progress.

2006 Progress Report 84 Promoting Quality, Integrity and Equity

Construction quality is notably improving as beneficiaries forward applications of which approximately 40% were increasingly have greater confidence in dealing with accepted. Of those selected over 88% were Aceh based contractors. businesses. Within BRR, through lessons from the MDF-funded Procurement PQAM programme and a recent World Bank analysis, A significant ongoing challenge for BRR, local government, weaknesses have been identified in implementation donors and NGOs, has been to employ speedy and through the on-budget ‘Satker’ system. Efforts are appropriate procurement processes as close to the ongoing to improve the system, including establishing point of delivery as possible. Capacity was often not a dedicated Procurement Service Unit (PSU) who will available to handle the scale of projects and associated oversee procurement and introduce improvements, funds in the field; pre-existing capacity was better suited including e-procurement from early 2007. 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 Integrity was delegated to the field for emergency response on such a scale, management capacity was stretched: where and counter- authority was not delegated, the systems proved slow corruption and unable to respond to rapidly changing needs. Anti-Corruption remains a prime area of concern in BRR is very keen to accelerate the pace of rehabilitation the reconstruction programme. Critical to the success and reconstruction. A regulatory initiative to accelerate of any counter-corruption agenda is to place it within procurement was Presidential Decree No.70 that gave a wider programme of strengthening organisational BRR leeway to directly appoint planning and housing integrity and programme delivery. NGOs and contractors during the first 6 months of 2006. This implementing agencies are handling large fund flows and enabled the appointment of some 900 small contractors continue to be keenly aware of the need for vigilance for to build housing. However one consequence of such accountability. An important institutional component fast track procurement practices is that it is more to counter corruption has been BRR’s Anti Corruption difficult for programme managers to defend the reason Unit, known in Indonesian as SAK. The Unit, which has for appointment in the current scenario of enhanced been operational since mid-September 2005, operates and critical public scrutiny, including complaints from on the basis that an effective programme to counter those contractors that were not appointed. As a result corruption requires a combination of work in the areas the authority to use a direct appointment approach has of corruption prevention, education and enforcement. brought both benefits and new pressures. In applying this new system BRR adopted a very open pre-qualification The Unit also manages an active complaints management process to vet potential contractors and consultants. facility. Since its inception to the end of September This process led to over 3,000 companies putting 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 Procurement Certification for tendering process. Of these complaints 40% related to Government Officials tendering issues while a further 16% related to project implementation concerns. This included concerns Presidential Decree 8 requires that all government about quality, timeliness etc. Concerns about corruption officials have to be certified in order to take part in represented 13% of all complaints received. A total of procurement. This is to have applied from January 767 complaints, approximately 75% of all complaints 2006. However given the low rates of staff passing received, have been investigated and resolved, while the required certification, this has been amended so 250 complaints remain under investigation. A further that the requirement to be certified applies from 13 complaints have been forwarded to specialised units January 2008. In the interim period government for further follow up, including 7 complaints which have officials must have to undertake the required training recently been submitted to the Corruption Eradication at least, at the same time as seeking to pass the Commission (KPK) for further consideration. The Unit is certification tests. also finalising preparation for submitting further batches of these complaints. Among the 15% in “other” includes

Aceh and nias two years after the tsunami 85 matters such as seeking ethical guidance and information as well as suggestions and complaints in relation to BRR Staff Integrity Pact non-corruption criminal issues. The Unit does not have BRR as an agency has sought to set a new standard authority to prosecute, hence the need to refer to other for government and adopted a zero tolerance agencies following its investigation. approach to corruption. Among BRR’s first step towards building a firm system of integrity was the Complaints Filed at The Anti-Corruption Unit introduction of an Integrity Pact system. This has now been in operation for over one year. BRR Other 15% recognises that having management and staff sign up to an Integrity Pact is but a first step. Implementation Rights demand by victim 7% of, and compliance with, the Pact must be enforced. Tendering Progress also needs to be reviewed and submitted issues 40% Rules, procedures to public scrutiny. To this end BRR and Transparency & compliance 9% International Indonesia (TI-I) have agreed that TI-I will conduct an evaluation of the Integrity Pact process Potential within BRR. BRR has also asked that the evaluation Corruption 13% also involve expertise from TI headquarters in Project implementation 16% Berlin.

BRR has been working with INGOs, donors through the Public MDF and the UN to establish mechanisms for integrating Information complaints management. This is to ensure that an effective response to complaints submitted by citizens Community consultation and participation has from the to any agency is possible. The SAK unit is the key focal outset been identified as a key element of reconstruction point for BRR. Separately BRR’s integrity partners have in Aceh and Nias. Although methodologies may differ, all come to agreement on sharing basic information on agencies consider accessible public information integral their contracting partners as part of an effort to enhance to their commitment to accountability to beneficiaries disclosure and transparency in the area of contracting. and to a sustainable programme. The importance of two-way dialogue with beneficiaries was highlighted in The Supreme Audit Agency, BPK, opened a dedicated CFAN in May 2006 and also by the TEC report launched provincial representative office in early 2006 and to in July 2006. 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.

2006 Progress Report 86 Promoting Quality, Integrity and Equity

The dynamic situation that isAceh and Nias reconstruction offices in September 2006 by a group made up of people at field level requires all players to be adaptable and living in barracks exemplified a lack of existing effective fully aware of changes that are necessary for effective communications channels. This issue is currently being delivery, most important of these players being the local rectified by the formation of a UN, NGO, BRR Task communities. Keeping expectations realistic and keeping Force to deal specifically with the needs of those living beneficiaries informed of the many obstacles that affect in barracks. the pace of reconstruction is integral to maintaining social cohesion and preventing disappointment within With much of the reconstruction programme yet to the affected communities. Agencies that have succeeded happen in 2007 and 2008, the importance of effective in maintaining a dialogue with the beneficiaries with communications channels will become increasingly whom they are working have found that given proper important. Furthermore, many programmes currently information and explanation, beneficiaries are willing to being implemented will be handed over to local show patience and understanding when it comes to speed partners in 2007, again emphasising the need for proper of delivery. For example, in some housing programmes, communications. Issues related to difficulties in obtaining effective communications have led to greater trust from accurate information, inconsistencies in local media beneficiaries allowing them to make choices relating reporting and lack of local language knowledge amongst to their houses based on a solid relationship with the the international players will all need to be overcome in implementing agency involved rather than based on order to meet the collective goals in public information statistics and data alone. The demonstrations at the BRR 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.

Aceh and nias two years after the tsunami 87 Gender Equity Concerns regarding gender equity were expressed by mainstream perspective in the formulation of policies, civil society, donors and implementing partners from planning, and implementation within areas like housing, early 2006. While some concerns were and will be infrastructure, economic development, health, education addressed by targeted initiatives, BRR’s director led and social, religion and institutional development. the creation of a comprehensive framework to better In education and economic development, for example, address gender issues across the programme. The Gender equal distribution of economic resources, vocational Working Group, a coalition of women’s organisations, training and scholarships are emphasised while, in the and others work with BRR in developing policy, strategy health sector, post-natal care and skilled birth attendances and implemention, including programming, development at village and sub-district levels are prioritised. A range of of gender-sensitive progress indicators and monitoring policies are proposed to support the creation of a pool system. of women leaders in fields like religion, technology, media and enterprise development through the introduction Policy and Strategy of capacity building programs, tailored training, language BRR in September 2006 officially launched its policy and training, exposure visits and follow up forums. The paper strategy paper on “Promoting Gender Equality in the also identifies a number of legal areas where gender Rehabilitation and Reconstruction Process.” The paper issues must be supported and facilitated including has been developed in recognition of the need to identify domestic violence and inheritance. effective ways to integrate gender-responsive actions in Conditions in temporary living centres have been the process of rehabilitation and reconstruction and hard for women and children due to lack of security, to provide a framework for agencies operating in Aceh inadequate facilities, lack of privacy and limited financial and Nias to further enhance their efforts in working resources. Short term priority programmes to address towards greater gender equity. The proposed policies these concerns, with a specific focus on widows, are and strategies encompass all sectors, providing a gender- required.

2006 Progress Report 88 Looking Ahead to 2007 Land titling has constrained the housing programme for Looking ahead two years now. Policies and the RALAS programme were to 2007 in place in 2005, but the issuance of certificates remains a bottleneck. Increased focus on land acquisition and tenure It is 2 years since the tsunami disaster that devastated issues will help speed up the housing reconstruction Aceh, and approaching 2 years since the earthquake process, and particular attention needs to be paid to that devastated Nias. The progress statistics show land acquisition for renters, squatters and non-returning considerable achievements towards the reinstatement IDPs. This will require full attention from the National of what was lost, varying between sectors, with systems Land Agency (BPN) from central government down to in place but with substantial implementation still to field level, and a frank assessment of operational capacity go. The delivery partners in the recovery effort have and commitment, along with closer coordination with learned from two years experience and have become district heads and local government planning agencies. more conscious of their mandates, areas of interest and Coordination within the housing sector has improved strengths, so are improving their delivery or shifting in the previous two years but housing and settlement accordingly. planning still needs better integration with other sectors, particularly infrastructure and livelihoods restoration, to Meeting Vital Needs ensure sustainable recovery for communities. Greater Identification of beneficiaries is critical to ensure that the emphasis will need to be placed on local government needs of the most vulnerable are met and for efficient participation in the reconstruction process through and credible allocation of housing and other resources. increased coordination and support for local level It is appropriate for BRR as lead government agency to planning processes and mechanisms. act on this, and BRR are developing an identification card Spatial planning should have preceded implementation and registration system for launch in 2007. of all reconstruction programmes. The village planning

2006 Progress Report 90 Looking Ahead 2007 programme has exposed weaknesses amongst the major In health, activities in 2005 were primarily focused on the actors, with planning activities overlapping and efforts provision of adequate emergency health services, while in being duplicated. This has resulted in critical areas being 2006 activities have focused more on the construction of overlooked in the first 2 years of the reconstruction health facilities and infrastructure as well as preparations programme. The BRR will need to consolidate with all for the development of human resources in the health the stakeholders in this critical exercise and designate sector. Effort in 2007 will continue to develop the geographical and technical areas of responsibility that human resource base and strengthen health system require urgent attention. management by providing and determining standards of health services, which cover posyandu, village maternity Housing delivery must continue at full pace but with posts, auxiliary community health centres, community a stronger eye on quality and increased capacity for health centres, hospitals, health education and training intervention and remediation. An accurate beneficiary agencies as well as health programme innovations by database is crucial to providing one new house per applying local-wisdom-based services. A concern for household and avoid a surplus of housing stock or the sector is also how to shift from the emphasis on fraudulent claims. BRR must take a more decisive role curative services towards preventative health services in monitoring and coordination. While the housing and programmes. 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 Managing Disaster Risk and and Simeulue. BRR needs to ensure a more efficient Environmental Impact reallocation of resources for primary and unfulfilled A Disaster Risk Reduction policy and framework will need reconstruction needs. to be ratified and socialised amongst all reconstruction partners. This process must emphasise and describe Improving the quality of housing reconstruction is a key the inherent role of disaster risk reduction in “building issue for 2007 and significant investments to support back better” and in underwriting and safeguarding quality assurance in housing construction are necessary. the extensive human and financial investment that has In addition, mitigating the risk of longer-term negative characterised the reconstruction so far. Early warning impacts requires that land policy, spatial planning systems will need to be expanded to as many vulnerable guidelines, and building codes be respected. Greater areas as possible. attention must also be given to disaster risk reduction and potential environmental hazards in the planning, The BRRs proposed Strategic Environmental Framework design and construction of housing. should be aligned with Disaster Risk Reduction Strategies and both be supplemented with appropriate rapid Providing Social Services appraisals that can highlight the overall opportunities and risks of the recovery effort portfolio. The current The coming year is crucial in ensuring the successful procedure for assessing expected environmental transfer of assets to government agencies with the impacts of reconstruction projects is regarded as capacity to manage and maintain them and offer deficient, one bottleneck being the limited resources the appropriate range and standard of services to and capacity of local government and service providers communities. To support this, specific initiatives are in Aceh to carry out the required environmental needed to develop local government capacity. impact assessments (EIAs/AMDALs). local government In education, much of the focus to date has remained capacity must be improved significantly and at short on school reconstruction, and there will need to be notice; due to the transient character of this demand, greater focus on addressing the quality of education in possibly taking into account additional short-term 2007. There has been progress in improving access to external help. As an important tool for environmental education, but improving quality of education is a long management, environmental monitoring capacities in and slow process, and it requires much institutional Aceh must be installed or improved. This will require capacity strengthening, as well as community participation complementing some laboratory equipment, a capacity and social surveillance. Effective implementation of the development programme and the installation of a GIS Aceh Five-Year Education Strategic Plan should establish based environmental information system. excellent foundations for the continuous improvement and development in education.

Aceh and nias two years after the tsunami 91 Establishing Infrastructure Managing the Reconstruction The IREP and IRFF programmes are poised to offer BRR and partners will need to be realistic in the goals the planning and implementation framework for a they set for 2007 and avoid setting targets which may solid infrastructure base for longer-term development not be possible to achieve. Victims of the disaster have that goes beyond the needs of reconstruction. The repeatedly expressed that realistic deadlines are more programmes do not cover all geographical areas, but acceptable so that they can better plan their own offers a model to be used throughout, with an appropriate futures. The current year showed that the housing vehicle for funding and harnessing international high-level target of 78,000 units in 2006 was not achieved due to expertise. However, building up the government capacity coordination and operational constraints. Continued to manage utilities and deliver services still requires a and greater cooperation between all partners and the stable political and administrative base and supportive BRR will hopefully reduce bottlenecks and find ways to policy framework. The scenarios in Aceh and Nias offer overcome them as a joint effort. The local government potential for innovation in means and quality of delivery at provincial and district level will need to play an increasingly important role in the planning and design of to all members of communities. That is likely to require reconstruction projects, but Joint Secretariats are widely significant effort to create effective and accountable perceived as an appropriate mechanism. partnerships between government, donors and private sector. Where commitments were made but unfulfilled. BRR as leader in the reconstruction process will need to actively Improving Livelihoods identify areas where progress is not visible and then recommend a decisive course of action in the interests Livelihoods for the vast majority of people in Aceh and of all partners. Nias remain vulnerable and 2007 must improve the short-term opportunities available to people, particularly Information management is still challenging and the the poor and to combat the increasing cost of living enormous scale of actors, projects, and assistance and inflation. Addressing rural poverty, particularly requirements make it incredibly difficult to provide an for women, will be one of the long-term challenges accurate and consistent picture of the recovery efforts facing Aceh and Nias. The stark decrease in growth in to decision-makers and implementers. However, as we agriculture in 2005 was accompanied by a sharp increase begin 2007 the need to demonstrate real progress and in poverty. There is still a huge need for investment in results becomes more relevant than ever. A shift towards agriculture, fisheries and other rural livelihood options. more results-based monitoring, including qualitative Reform within the fisheries and agriculture sectors as well as quantitative information, and effective data collection on cross-cutting issues is required to help offers excellent chances for poverty reduction and demonstrate the outcomes and potential longer-term economic development through developing higher impacts of reconstruction and rehabilitation. The need value added activity. Programmes have been formulated for a beneficiary database as accurate as possible isa for 2007-2011, aimed at immediate impact in critical essential to ensure that no victim receives more than its areas of agriculture and fisheries, but these still require legitimate entitlement. Gender-related concerns must substantial funding. be integrated into the reconstruction and rehabilitation Provincial and Local Government must urgently develop activities and programmes of all agencies operating in and present a common vision about the economic Aceh and Nias. To date, gender disaggregated data of development of the region. The current situation of high target beneficiaries is not available which hampers import levels in Aceh, the weak enabling base in Nias, efforts to ensure systematic gender-sensitive planning, and the level of the reconstruction funds being spent on budgeting and monitoring which reflects the ongoing services and invested is not sustainable. Interventions to need to strengthen information management systems. address the long-term economic impacts of the tsunami BRR must oversee this effort but all international and the reconstruction process will need to begin in agencies and NGOs will need to make a conscientious 2007. 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

2006 Progress Report 92 Looking Ahead 2007 planning role, and the need to demonstrate significant Others are considering transitional strategies from/to and measurable progress in the overall reconstruction particular geographical or programme areas. The MDF program. BRR will need to continue to build the capacity and others are keen to look longer-term towards of its regional offices, strengthening its coordination economic development and are taking keen interest in function and promoting an area-based collaborative an economic development strategy. Donors and partners approach with local government. are promoting gender, environment, and disaster risk reduction as cross-cutting themes that must be addressed The capacity of the BRR project implementation units, for sustainable development. BRR will articulate its Satker, must be increased as quickly as possible. The last strategy for handover to local government and exit in two years has seen the Satker stretched to the limit with 2009. Where partners have come together, such as at too many projects and insufficient staff numbers which the Coordination Forum for Aceh and Nias (CFAN), the directly impacted the timely completion of the task and discussion has ranged from how we collectively meet drastically affected the quality of the final product, along those targets at the scale required, but also how we are with drawing the resources of BRR staff into resolving moving from emergency and recovery towards more the government-funded projects operational issues when development oriented goals. they could have devoted those resources to higher-level facilitation. A greater number of field inspectors who are Two years on, that the stakeholders show sufficient well trained and motivated will be essential to improve confidence in progress so far to debate the longer term quality standards and meet completion deadlines. scenario is both a sign of achievement and a sign of the pace and scale of change that continues to mark this The Scenario in 2007 recovery programme. In 2007 it will be beneficial to The effective transition from the relief phase to ensuring articulate as soon and as clearly as possible what we longer-term development outcomes in the recovery collectively want to achieve in terms of development. The process will be well underway in 2007. Coordination year could be pivotal in setting a longer term agenda, but and open-sharing of information between all partners is equally this will hinge on maintaining the commitment pivotal. The challenge for 2007 will be the coordinated and momentum that has been in place through 2006 in implementation of policies in a way that seeks to optimise overcoming the still considerable challenges of immediate our delivery, not merely standardise our procedures. As reconstruction. the programme aims towards sustainable development The most important group in considering the success goals, the programme becomes more complex and the and potential of recovery is the community at large. For division between post-conflict and post-disaster will be the longer-term development scenario to be considered, less distinct. Working together and aligning competencies articulated and be plausible, the views and voices of the and comparative advantage of each implementing agency, people cannot be overlooked, and their suggestions and and planning together for optimal sharing and sequencing requests play a critical role in “building back better”. of work will help support successful recovery of Experience has shown that when communities have communities and livelihoods. access to proper information combined with their local The picture that is emerging for 2007 is of complementary knowledge of the workplace and the living environment, but increasingly clear streams: One continuing to focus their suggestions are extremely meaningful. on achievement of reconstruction targets, getting the Economic and social development, to accompany houses and infrastructure constructed at community physical rebuilding, will not only help revitalise a province level, ensuring restoration of basic livelihoods, and devastated by one of the greatest natural disasters ever essential community services such as schools. The known but will also help maintain the existing peace second stream will focus on longer-term development, accord. The coming year will be a successful step on the capitalising on the reconstruction effort in the most path to recovery if there is a combination of a continued strategic way possible, to create a basis and supporting collective rebuilding effort with vital engagement in what infrastructure for economic growth, with the government the BRR, implementing and donors partners, the local and social processes required to support sustainable government, communities and individuals aim to achieve development. in the years to come. 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.

Aceh and nias two years after the tsunami 93

ANNEXES

Aceh and nias two years after the tsunami 95 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

2006 Progress Report 96 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)

Aceh and nias two years after the tsunami 97 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)

2006 Progress Report 98 Glossary

English Indonesian English Indonesian

accountability pertanggungjawaban Multi Donor Fund dana multi donor Advisory Board Dewan Pengarah National Land Agency Badan Pertanahan Nasional agency badan off budget di luar anggaran area daerah, kawasan on budget dalam anggaran barat west Oversight Board Dewan Pengawas basic commodity komoditi andalan Procurement Quality Jaminan dan Pemantauan Mutu billion miliar Assurance and Monitoring Pengadaan board dewan Procurement Service Unit Satuan Layanan Pengadaan build back better membangun menjadi lebih baik Promoting Gender Equality Memajukan Kesetaraan Gender in the Rehabilitation and dalam Proses Rehabilitasi dan building codes ketentuan-ketentuan tentang Reconstruction Process Rekonstruksi bangunan Public Financial Management Manajemen Keuangan Pemerintah bureau biro Public Information Centre Pusat Informasi Publik capacity building pengembangan kemampuan regulation qanun (arabic term) certification sertifikasi Rehabilitation and Badan Rehabilitasi dan Rekonstruksi Chief of Sub-district Camat Reconstruction Agency for Wilayah dan Kehidupan Masyarakat city/town kota the Region and Community Provinsi Nanggroe Aceh Darussalam of the Province of Aceh dan Kepulauan Nias Provinsi civil society masyarakat madani, sipil and the Nias Islands in the Sumatera Utara complaints handling Penanganan Keluhan Province of North Sumatra Corruption Eradication Komisi Pemberantasan Korupsi Restoration of Aceh Land Pemulihan Sistem Administrasi Tanah Commission Administration System di Aceh cross-cutting lintas sektoral settlement (Ach. kemukiman administrative division larger customs, (traditional) law adat than a village) damage and loss assessment penilaian kerusakan dan kerugian settlement, head of mukim, imuem mukim database pangkalan data sub-district kecamatan delivery (of work) pelaksanaan (pekerjaan) sub-district head camat delivery unit satuan kerja sustainable development pembangunan yang berkelanjutan district kabupaten temporary living centres tempat tinggal sementara district head bupati temporary shelter hunian sementara emergency response tanggap darurat Temporary Shelter Plan of Rencana Tindak Hunian Sementara escape route jalan untuk menyelamatkan diri Action fish-ponds tambak traditional fishing community Ach. panglima laot gender equity kesetaraan gender leader government authority instansi pemerintah transitional housing perumahan transisi Government Regulation Peraturan Pemerintah (PP) trillion triliun head of sub-district camat village desa, gampong, kelurahan internally displaced people pengungsi Village Chief Kepala Desa Islamic law Syariah village head Ach. keucik Islamic place of prayer in Ach. meunasah Aceh Islamic School Pesantren Islamic theologian, scholar ulama joint-land titling sertifikat tanah gabungan livelihood mata pencaharian Master Plan Rencana Induk

Aceh and nias two years after the tsunami 99 Financial Methodological Note

Definitions of Needs 1. 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. 2. 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 1. 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. 2. 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. 3. Donor disbursements are defined as those funds that have been spent on projects by donors. This information is directly collected from the major donors. 4. 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. 5. GOI disbursement are Central Government disbursements, consisting of BRR funds. This data has been provided by BRR’s Finance Unit 6. 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. 7. Sectoral Analysis. The financing figures are classified into four categories: social sector, infrastructure, productive sectors and cross sectoral.

Damage and Loss Assessment, January 2005 IOM

2006 Progress Report 100 0 9,248 5,608 2,494 2,540 12,984 35,388 37,195 18,024 10,810 134,291 134,291 BRR and BPN Nov BRR and BPN Nov 2006 # of land parcels measured 0 100 107 652 536 750 223 926 5,088 9,008 17,390 17,390 BRR and BPN Nov BRR and BPN Nov 2006 # of land certificates signed 5 0 10 100 300 150 384 2,516 4,238 7,703 7,703 BRR and BPN Nov BRR and BPN Nov 2006 No. of land certificates distributed 0 0 0 0 0 0 0 8 488 307 202 283 145 371 589 208 695 2,329 4,665 1,315 1,234 2,787 1,268 4,055 12,839 16,894 2 year P rogress data BRR Nov 2006 BRR Nov and BRR Nias Nov 2006 On-budget: houses On-budget: GoI funded through Permanent Permanent houses built on-budget (projected year end) 0 0 0 0 0 0 0 20 52 465 370 143 161 4,473 3,609 2,237 7,038 2,811 1,333 3,815 1,377 1,225 1,386 11,100 38,843 40,229 BRR Nov 2006 BRR Nov and BRR Nias Nov 2006 Off-budget: funded/ Off-budget: NGOs/IAs built by Permanent Permanent houses built off-budget (projected year end) 0 0 0 0 0 0 772 283 165 423 578 143 4,961 3,811 2,826 4,126 2,028 5,049 1,385 4,012 1,429 5,441 13,429 11,703 51,682 57,123 BRR Nov 2006 BRR Nov and BRR Nias Nov 2006 Total of on + off Total budget Permanent Permanent houses built (projected year end) 0 0 0 0 0 0 0 0 0 0 52 61 56 271 419 294 254 730 293 349 3,187 2,863 4,721 1,785 14,637 14,986 BRR Nov 2006, BRR Nov 2006, BRR Nias Nov TS Update Nov IFRC 2006 Actual figures Actual figures 2006 November for Temporary Temporary houses and transitional shelters completed amiang engah enggara T T T T imur Aceh S ingkil Aceh Aceh Barat Aceh Aceh Aceh Besar Aceh Jaya Aceh Aceh Utara Aceh Barat D aya Banda Aceh Banda Bireuen Aceh S elatan S imeulue Gayo Lues Gayo Langsa Lhokseumawe Nagan Raya ACEH TOTAL ACEH Nias S elatan Bener M eriah Nias Source Comments P idie S abang District MEETING VITAL NEEDS MEETING VITAL NIAS TOTAL GRAND TOTAL

Aceh and nias two years after the tsunami 101 0 0 5 5 0 0 0 0 16 11 28 14 12 22 18 18 113 131 incl. in Nias incl. Hosp, Pusk, Hosp, Pustu 0 0 1 7 3 2 0 0 1 48 67 45 22 17 30 63 18 19 305 324 Total health facilities built / Total repaired All health facilities 5 4 1 6 2 3 2 7 0 15 10 55 55 Satellite health posts are auxiliary health centres Satellite health posts built 6 3 7 3 7 0 0 0 8 8 19 16 61 69 incl. in Nias incl. Pustu is a village Pustu is a village health centre Pustu built / repaired 8 9 5 4 2 5 0 0 6 0 0 10 10 49 10 59 2 year P rogress data incl. in Nias incl. Puskesmas is a Puskesmas sub-district health centre Puskesmas Puskesmas built / repaired 1 0 2 8 0 0 33 11 11 34 100 100 Polindes is a Polindes birthingvillage facility Polindes Polindes built / repaired 0 3 0 0 0 0 1 3 1 4 Hospitals built / repaired 8 2 1 0 26 37 37 BRR November 2006 BRR November Posyandu is an Posyandu health- integrated sub-village at post level Posyandu Posyandu built / repaired amiang engah enggara T T T T imur Aceh Barat Aceh Besar Aceh Jaya Aceh Barat D aya Aceh S elatan Aceh S ingkil Aceh Aceh Utara Banda Aceh Banda Aceh Aceh Aceh Bireuen Gayo Lues Gayo Langsa Bener M eriah Lhokseumawe Nagan Raya ACEH TOTAL ACEH Nias P idie S abang S imeulue NIAS TOTAL GRAND TOTAL Source Comments Nias S elatan District PROVIDING SOCIAL SERVICES PROVIDING

2006 Progress Report 102 5 8 9 10 65 25 529 102 138 996 128 203 565 260 285 1,120 1,246 5,124 5,409 BRR RAN Oct 2006 Number of teachers teachers trained 0 0 0 0 0 0 0 0 0 0 0 0 0 4 0 0 33 33 42 15 38 214 165 214 379 incl. in Nias incl. Number of temporary schools built 9 9 0 56 17 80 31 29 20 23 17 30 27 38 40 18 42 36 65 10 26 124 623 124 747 incl. in Nias incl. Total number Total of permanent schools built / repaired 1 0 7 0 0 0 0 0 0 4 5 0 2 0 0 0 5 0 0 0 2 2 22 46 48 incl. in Nias incl. 2 year P rogress data Number of kindergarten kindergarten (TK) built / repaired 3 1 1 2 1 0 1 0 0 0 0 3 1 5 0 0 0 3 7 0 1 8 8 29 37 incl. in Nias incl. Number of senior high schools (SMA) built / repaired 5 7 9 0 6 19 15 40 28 20 22 17 30 23 33 11 16 32 19 49 15 28 28 416 444 incl. in Nias incl. Number of junior high schools (SMP) built / repaired 1 0 0 0 0 0 4 1 1 3 2 0 0 9 9 4 33 17 17 21 10 86 86 132 218 incl. in Nias incl. BRR October 2006 Number of elementary schools (SD) built / repaired amiang engah enggara T T T T imur Aceh Barat Aceh Barat D aya Aceh Besar Aceh S elatan Aceh Jaya Aceh S ingkil Aceh Aceh Aceh Aceh Utara Bener M eriah Aceh Banda Aceh Banda Bireuen Gayo Lues Gayo Langsa Lhokseumawe P idie Nagan Raya S abang S imeulue ACEH TOTAL ACEH Nias S elatan Nias NIAS TOTAL GRAND TOTAL Source District PROVIDING SOCIAL SERVICES PROVIDING

Aceh and nias two years after the tsunami 103 0 28.09 1,458 1,458 252.89 1,177.00 Recovered Recovered wood wood processed processed into condition suitable for (m3) recycling 0 9.00 447.89 17,442 17,442 4,031.09 12,954.00 Timber Timber stockpiled for future re-use re-use (m3) 0 52 52 2.00 1.99 0.40 17.90 10.90 19.19 Roads rehabilitated rehabilitated / reclaimed with rubble with rubble (km) 0 6,299.14 10,499.00 20,186.00 119,683.84 446,187.00 457,452.00 1,060,307 1,060,307 UNDP/TRWMP Nov 2006 Nov UNDP/TRWMP Tsunami Tsunami waste cleared cleared (m3) 0 0 0 50 573 355 634 100 295 200 300 506 2 year P rogress data 2,125 2,550 3,050 1,200 11,938 11,938 BRR Nov BRR Nov 2006 Mangrove Mangrove restored restored (ha) 0 0 0 0 0 0 0 0 0 0 0 362 600 450 800 300 350 300 309 600 1,460 3,057 16,095 10,454 35,137 35,137 BRR 2005 Mangrove Mangrove damaged (ha) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 750 930 2,165 1,110 1,350 3,500 14,216 24,021 24,021 BRR Oct 2006 Saltwater Saltwater built dykes (m) 0 0 0 0 0 0 0 0 0 0 0 432 480 450 2,005 2,313 2,327 3,213 2,196 1,460 2,662 1,450 2,630 11,615 33,233 33,233 BRR Oct 2006 Includes all types: bio- Includes all types: quay seawalls, fencing, walls and breakwaters walls Coastal built protection (m) amiang engah enggara T T T T imur Aceh Barat D aya Aceh Barat Aceh Besar Aceh Jaya Aceh Aceh Aceh S ingkil Aceh S elatan Aceh Aceh Utara Aceh Banda Aceh Banda Bener M eriah Bireuen Gayo Lues Gayo Langsa S abang Lhokseumawe P idie Nagan Raya Nias S elatan ACEH TOTAL ACEH S imeulue Nias NIAS TOTAL GRAND TOTAL Source Comments District MANAGING DISASTER RIS K AND THE ENVIRONMENT MANAGING

2006 Progress Report 104 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 Further 2 in design Airstrips Airstrips built / under development 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 1 0 1 1 1 1 5 2 7 Airports Airports built / under development 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 1 4 3 7 BRR Oct 2006, Dinas Perhubungan (Provincial Transportation Transportation (Provincial Dinas Perhubungan BRR Oct 2006, Office) 2006 Further in 5 are design Harbours Harbours built / under development 1 1 2 1 1 1 7 0 7 BRR Oct 2006 1 ferry terminal in and 1 aceh barat in aceh jaya are are in aceh jaya under design Ferry Ferry terminals under development 2 year P rogress data 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 3 45 16 33 21 22 15 37 121 158 BRR Oct 2006 and BRR Nias 2006 Nov Number of built bridges / repaired 6 5 5 6 7 10 44 17 13 18 37 10 18 21 23 59 345 121 196 132 110 309 309 1,201 1,510 incl. in nias incl. BRR Nov BRR Nov 2006, BRR 2006, Nias Nov 2006 Total Total roads (km) 3 49 17 74 19 10 35 75 75 207 282 incl. in nias incl. BRR Nov BRR Nov BRR 2006, Nias Nov 2006 Provincial Provincial & national built roads / repaired (km) 6 5 5 6 7 10 24 14 13 18 37 10 18 21 13 24 296 104 122 132 110 234 994 234 1,228 incl. in nias incl. BRR Nov 2006, 2006, BRR Nov BRR Nias Nov 2006 Roads by districtRoads by includes district, village subdistrict, and local roads. District District and minor built roads / repaired (km) amiang engah enggara T T T T imur Aceh Barat Aceh Barat D aya Aceh Besar Aceh Jaya Aceh S elatan Aceh S ingkil Aceh Aceh Aceh Aceh Aceh Utara Banda Aceh Banda Bener M eriah Bireuen Gayo Lues Gayo Langsa Lhokseumawe Nagan Raya P idie S abang S imeulue ACEH TOTAL ACEH Nias Nias S elatan NIAS TOTAL GRAND TOTAL Source Comments District ESTABLISHING INFRASTRUCTURE ESTABLISHING

Aceh and nias two years after the tsunami 105 76 20 20 30 42 424 605 246 247 150 242 208 222 145 179 830 216 278 240 518 3,902 4,420 BRR Nov 2006 BRR Nov Number of Fishing Replaced Vessel (unit) 662 108 455 409 659 561 952 318 524 783 512 356 846 917 145 1,330 1,577 1,393 1,321 1,062 12,766 13,828 FAO September 2005 FAO Note these figures not directly comparable. Total Boats comparable. not directly Note these figures lost was 4,717(source: One Year After the Tsunami report), Tsunami report), After the Year One 4,717(source: lost was comparable with boats replaced. Figures for repaired boats repaired for Figures with boats replaced. comparable not available at Nov2006 Fishing vessels Fishing vessels damaged / destroyed 0 0 0 0 0 0 0 0 0 0 40 15 12 60 10 573 300 140 400 293 877 144 2,023 1,913 6,800 6,800 BRR, FAO, ADB ETESP FAO, BRR, Fisheries 2006 Nov Area of Area fishponds (ha) restored 0 0 0 0 0 0 0 0 2 year P rogress data 10 19 285 835 440 108 220 480 2,384 1,443 2,390 18,979 27,593 27,593 BRR 2005 Fishponds damaged (ha) 0 0 0 0 984 150 150 428 283 7,443 6,243 8,544 2,446 7,875 3,800 7,542 2,942 1,510 1,510 48,830 50,340 incl. in Nias figure incl. BRR Nov 2006 BRR Nov Agricultural Agricultural land rehabilitated (ha) 0 0 0 0 0 0 44 736 119 N/A N/A 3,016 2,570 6,912 3,255 1,026 3,100 28,190 24,901 73,869 73,869 BRR 2005 Agricultural Agricultural land damaged (ha) amiang engah enggara T T T T imur Aceh Barat D aya Aceh S elatan Aceh Barat Aceh S ingkil Aceh Aceh Besar Aceh Aceh Jaya Aceh Aceh Bener M eriah Aceh Utara Banda Aceh Banda Bireuen P idie Gayo Lues Gayo S abang Langsa S imeulue Lhokseumawe Nagan Raya Nias S elatan ACEH TOTAL ACEH Nias NIAS TOTAL GRAND TOTAL Source Comments District IMPROVING LIVELIHOODS IMPROVING

2006 Progress Report 106 Progress Tables 0 972,159 903,864 1,260,110 1,441,680 1,019,732 1,019,325 1,109,009 1,228,021 1,393,238 1,078,036 1,141,513 2,562,525 1,080,404 1,066,921 1,283,354 1,297,032 1,458,058 1,057,446 1,129,907 1,471,203 1,149,718 1,206,744 1,206,744 Source: BPS _SUSENAS 2005, BPS _SUSENAS 2005, Source: February 2006 Proxied by total expenditure on food on food total expenditure by Proxied at household level and non-food Monthly average Monthly average household income (IDR) 2.9 0.0 42.0 60.1 30.1 45.2 60.6 65.9 46.5 42.8 85.7 62.1 46.0 45.8 46.9 86.3 43.7 33.1 60.2 57.5 15.9 78.2 49.8 49.8 BPS Pendataan Sosial Ekonomi, Sosial Ekonomi, BPS Pendataan 2005 Recording Social-Economy Aug 2006) (Corrected In Banda Aceh = individual income In Banda For less than IDR180,000/month. other cities lower. other cities lower. % population under line (Based poverty on living costs for each city.) 0 0 0 0 0 3 0 18 NA NA 413 136 516 4,806 5,843 1,843 2,575 7,594 1,680 1,235 3,547 13,054 43,263 43,263 BRR Nov 2006 BRR Nov Beneficiaries of loans only, not grant- Beneficiaries of loans only, based programmes Number of loans (< IDR 5 million) business to micro (beneficiaries) 2 year P rogress data 0 51.5 47.2 37.1 56.3 45.5 38.5 33.4 69.7 58.8 42.5 44.2 67.3 47.2 60.7 28.9 30.7 54.8 50.8 40.2 42.3 45.1 45.1 Rural Female 0 74.1 72.9 69.3 73.1 71.1 71.2 72.8 76.9 68.6 71.4 68.8 76.6 69.1 72.4 70.6 63.1 76.2 69.6 77.5 70.3 68.4 68.4 Rural Male 0 28.4 38.6 29.6 50.7 29.6 31.6 25.2 45.7 50.1 26.1 26.3 28.2 52.1 36.3 32.2 25.7 26.3 52.8 39.1 40.8 36.6 35.8 35.8 Urban Female 0 Labour Force Participation Rate Participation (%) Labour Force 68.9 71.8 65.5 77.7 69.8 68.2 69.2 69.1 69.3 63.9 67.3 65.6 71.1 68.9 63.6 65.6 65.6 75.0 67.5 73.4 70.6 68.9 68.9 BPS SPAN 2005 BPS SPAN LFPR shows the percentage of the population age 15 and above who are active economically in the country/ who are 15 and above of the population age the percentage LFPR shows ( >15 ) to the total population in working age of labor force LFPR is the ratio region. Urban Male amiang engah enggara T T T T imur Aceh Barat Aceh Besar Aceh Jaya Aceh Utara Aceh Barat D aya Banda Aceh Banda Aceh S elatan Bireuen Aceh S ingkil Gayo Lues Gayo Aceh Langsa Lhokseumawe Aceh Nagan Raya Aceh Aceh Bener M eriah ACEH TOTAL ACEH Nias Nias S elatan NIAS TOTAL GRAND TOTAL Source Comments P idie S abang S imeulue District IMPROVING LIVELIHOODS IMPROVING

Aceh and nias two years after the tsunami 107 41.1 (8.1) Total 3.2 164.7 Dec 2.3 159.5 Nov 1.5 12.4 155.8 178.2 Oct 0.1 0.8 138.6 175.5 Sep 3.2 0.9 138.4 174.0 Agt 1.0 0.8 134.1 172.4 Jul 2 year P rogress data 0.9 -0.5 132.7 170.9 June 3.1 -0.2 133.5 169.4 Mei 4.4 -1.4 133.9 164.2 Aprl 3.9 -2.9 128.2 166.7 Mar 1.9 -1.2 123.3 171.7 Feb 7.0 2.2 124.9 168.4 Jan Variable Inflation (%) CP I Inflation (%) CP I 2005 2006 Source: BPS (Nov, 2006) BPS (Nov, Source: Aceh only Banda PROGRESS Index (CPI) changeInflation in Banda Aceh Rate based on Consumer Price Year

2006 Progress Report 108 2 year Progress data

IMPROVING 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) Aceh and nias two years after the tsunami 109