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The Case of Aceh, Indonesia Patrick Barron Erman Rahmant Kharisma Nugroho

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The Case of Aceh, Indonesia Patrick Barron Erman Rahmant Kharisma Nugroho THE CONTESTED CORNERS OF ASIA Subnational Conflict and International Development Assistance The Case of Aceh, Indonesia Patrick Barron Erman Rahmant Kharisma Nugroho The Contested Corners of Asia: Subnational Con!ict and International Development Assistance The Case of Aceh, Indonesia Patrick Barron, Erman Rahman, Kharisma Nugroho Authors : Patrick Barron, Erman Rahman, Kharisma Nugroho Research Team Saifuddin Bantasyam, Nat Colletta, (in alphabetical order): Darnifawan, Chairul Fahmi, Sandra Hamid, Ainul Huda, Julianto, Mahfud, Masrizal, Ben Oppenheim, Thomas Parks, Megan Ryan, Sulaiman Tripa, Hak-Kwong Yip World Bank counterparts ; Adrian Morel, Sonja Litz, Sana Jaffrey, Ingo Wiederhofer Perceptions Survey Partner ; Polling Centre Supporting team : Ann Bishop (editor), Landry Dunand (layout), Noni Huriati, Sylviana Sianipar Special thanks to ; Wasi Abbas, Matt Zurstrassen, Harry Masyrafah Lead Expert : Nat Colletta Project Manager : Thomas Parks Research Specialist and Perception Survey Lead : Ben Oppenheim Research Methodologist : Yip Hak Kwang Specialist in ODA to Con!ict Areas : Anthea Mulakala Advisory Panel (in alphabetical order) : Judith Dunbar, James Fearon, Nils Gilman, Bruce Jones, Anthony LaViña, Neil Levine, Stephan Massing, James Putzel, Rizal Sukma, Tom Wing!eld This study has been co-!nanced by the State and Peacebuilding Fund (SPF) of the World Bank. The !ndings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the World Bank and its af!liated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Additional funding for this study was provided by UK Aid from the UK Government. The views expressed in this report are those of the authors and do not necessarily represent those of The Asia Foundation or the funders. www.asiafoundation.org/con"ictstudy Contents List of Terms and Acronyms VIII Executive Summary XIV Understanding Aceh XIV Transforming the Con!ict XIV Aid and Development Programs in Aceh XV Aid and Politics in Aceh XVI Is Aid in Aceh Contributing to Peace and Development? XVII Recommendations XVIII 1. Introduction 1 1.1 Understanding Subnational Con!ict Areas and the Role of Aid: Concepts 2 1.2 Objectives and Focus of the Aceh Study 4 1.3 Data and Methods 5 2. Understanding Aceh 9 2.1 Subnational Con!ict in Aceh 9 2.2 Socio-Economic Conditions in Aceh 16 3. Transforming the Con!ict 23 3.1 Contestation and Con!ict in Aceh 23 3.2 Center-Periphery Contestation 26 3.3 Contestation between Elites in Aceh 31 3.4 Contestation between Aceh Elites and Locals 35 3.5 Inter-communal Contestation 40 3.6 Changing Transformational Needs 43 VI 4. Aid in Aceh 45 4.1 Overview of Aid in Aceh 45 4.2 Early Postcon!ict Aid and Development Programs in Aceh 48 4.3 Current Major Aid and Development Programs in Aceh 53 4.4 Developmental Outcomes 64 5. Aid and Politics in Aceh 67 5.1 Politics and Aceh’s Initial Postcon!ict Programs 67 5.2 Politics and Aceh’s Current Postcon!ict Programs 73 5.3 Community-level Power Dynamics and Development Programs 76 6. Is Aid in Aceh Contributing to Peace and Development? 85 6.1 Initial Postcon!ict Assistance Programs in Aceh 85 6.2 Current Postcon!ict Assistance Programs in Aceh 88 7. Conclusions and Recommendations 91 7.1 Findings 91 7.2 Recommendations for Aid in Aceh 95 7.3 Recommendations for Other Subnational Con!ict Areas 96 References 99 Annexes 107 Annex A. Comparison of Aceh and Other Provinces in Indonesia 107 Annex B. Selected Development Indicators of Districts in Aceh 115 Annex C. Violence Data 117 Endnotes 118 VII List of Terms and Acronyms ABAS : West Aceh and South Aceh (Aceh Barat Aceh Selatan) Adat : Customary law ADB : Asian Development Bank ADRF : Aceh District Response Facility (GIZ program) AGTP : Aceh Governance Transformation Program (UNDP program) ALA : Aceh Leuser Antara AMM : Aceh Monitoring Mission (EU/ASEAN-sponsored peace mission) APBA : Aceh provincial government budget APBK : District government budget APBN : National government budget APPS : Aceh Peace Process Support (EU-funded program) ARLS : Aceh Reintegration and Livelihood Survey ASEAN : Association of Southeast Asian Nations A-TARP : Aceh Technical Assistance Recovery Project (USAID-funded program) AusAID : Australian Agency for International Development Bappeda : Local Development Planning Agency (Badan Perencanaan Pembangunan Daerah) Bappenas : National Development Planning Agency (Badan Perencanaan Pembangunan Nasional) BKPG : Financial Assistance for Village Development - Bantuan Keuangan Pemakmue Gampong (local government-"nanced community development program) BKPP : Training and Education Board – Badan Kepegawaian, Pendidikan dan Pelatihan (Government of Aceh) BPK : State Audit Agency (Badan Pemeriksa Keuangan) BPS : Indonesian Statistics Agency (Badan Pusat Statistik) BRA : Aceh Reintegration Board (Badan Reintegrasi Aceh) VIII BRA-KDP : BRA program, adopted from KDP, providing community-based assistance to con!ict victims BRR : Rehabilitation and Reconstruction Agency (Badan Rehabilitasi dan Rekonstruksi) Camat : Sub-district head CBD : Community-Based Development CDD : Community-Driven Development CMI : Crisis Management Initiative (Finnish NGO that chaired the Helsinki peace negotiations) CoHA : Cessation of Hostilities Agreement (2002 peace agreement, which collapsed in May 2003) CPDA : Consolidating Peaceful Development in Aceh (World Bank program) CSO : Civil Society Organization DAU : General Allocation Grant – Dana Alokasi Umum (grant from central government to regions) DFID : UK Department for International Development Diyat : Compensation for people who had family member killed in the con!ict DOM : Military Operation Zone (Daerah Operasi Militer) DPRA : Aceh provincial legislative council/parliament (Dewan Perwakilan Rakyat Aceh) DPRK : District legislative council/parliament (Dewan Perwakilan Rakyat Kabupaten/ Kota) EU : European Union FDI : Foreign Direct Investment FFI : Fauna and Flora International FK :Sub-district facilitator – fasilitator kecamatan (for PNPM/BKPG program) Forum Bersama :Joint forum (body bringing together GAM, government, IX List of Terms and Acronyms civil society and international donors) FT : Technical facilitator/engineer – fasilitator teknis (for PNPM/BKPG program) GAM : Free Aceh Movement (Gerakan Aceh Merdeka) Gampong : Acehnese term for village GIZ : Dutch Agency for International Development (Deutsche Gesellschaft fur Internationale Zusammenarbeit) GoA : Government of Aceh GoI : Government of Indonesia GDP : Gross Domestic Product GRDP : Gross Regional Domestic Product HDI : Human Development Index HRW : Human Rights Watch ICG : International Crisis Group ICRS : Information, Counseling and Referral Services (IOM program) Imeum : Head of mukim IOM : International Organisation for Migration Jadup : Living allowance/social security payment (given to former GAM shortly after the MoU) JKA : Aceh Health Insurance (Jaminan Kesehatan Aceh) Kabupaten : Rural district KDP : Kecamatan Development Program (Government and World Bank-"nanced community development program) Kecamatan : Sub-district Keuchik : Village head (Acehnese term) KINERJA : USAID-funded program on local governance and public service delivery KKN : Collusion, corruption, nepotism (kolusi, korupsi, nepotisme) X Kontraktor : Contractor Kota : Urban district KPA : Aceh Transitional Council - Komite Peralihan Aceh (organization for former GAM combatants) KPK : National Corruption Eradication Commission (Komisi Pemberantasan Ko- rupsi) KPPOD : Regional Autonomy Watch – Komite Pemantauan Pelaksanaan Otonomi Daerah (Indonesian NGO) LCS : Locality Case Studies LGSP : Local Governance Support Program (USAID-funded program) LoGA : Law on Governing Aceh LOGICA : Local Governance and Infrastructure for Communities MAD : Inter-village meeting – Musyawarah Antar Desa (PNPM) MCFD : Million cubic feet per day (measure of natural gas extraction) MDF : Multi Donor Fund (for tsunami reconstruction) Meunasah : Community prayer hall MKP : Women’s proposal preparation discussion meeting – Musyawarah Khusus Perempuan (PNPM) MoU : Memorandum of Understanding between the Indonesian government and GAM, signed in Helsinki MSR : Multi-Stakeholder Review of Post-Con!ict Programming in Aceh Mukim : Area consisting of multiple villages, below sub-district (kecamatan) level Musrenbang : Government development planning process (Musyawarah Perencanaan Pembangunan) NGO : Non-Government Organization NVMS : National Violence Monitoring System XI List of Terms and Acronyms ODA : Of"cial Development Assistance OECD : Organisation for Economic and Cultural Development PA : Aceh Party – Partai Aceh (Ex-GAM’s political party, established in 2007) Pajak Nanggroe : State tax (tax imposed by GAM during the con!ict) Pangdam : Provincial military commander (Panglima Daerah Militer) Panglima : Military commanders PECAPP : Public Expenditure Analysis and Capacity Strengthening Program (World Bank program) Peusijuk : Traditional welcoming ceremony in Aceh PG : Provincial government PLN : State Electricity Company (Perusahaan Listrik Negara) PNA : Aceh National Party - Partai Nasional Aceh (local party established in 2012) PNPM : National Community Empowerment Program – Program Nasional Pemberdayaan Masyarakat (Indonesian government community development program, formerly called KDP) Puskesmas : Community health centers (pusat kesehatan masyarakat) Qanun : Local by-law in Aceh Rp : Rupiah (Indonesian currency,
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