Aceh and Nias Two Years After the Tsunami - International ...

Aceh and Nias Two Years After the Tsunami - International ...


Aceh and Nias

Two Years After the Tsunami

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

BRR and partners

December 2006


Jakarta, December 2006




2006 Progress Report

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


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 t wo years after the tsunami



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:




Kate Clifford, Nabila Hameed, Noviana Syrianti

Rehan Kausar

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.


American Red Cross



CARE International



Save The Children







World Bank

World Vision

Eugenio Demigillo, Garry Shea, Harry King, Michael Phillips, Pieter Smidt,

Richard Beresford, Ashley Bansgrove

Dellaphine Rauch-Houekpon

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,

Danny Harvey

Melanie Brooks

Bram van der Boon, Dick Jansen

Sabine Joukes

Jon Bugge

Robin Willison

Bruno Dercon

John Carstensen

Mervyn Fletcher, Sayo Aoki

Satoko Nakagawa, Steve Ray, Ferry Wangsasaputra, Anissa Elok, Hadi Mahrina,

Muhammad Nasir

Tomasz Starega

Andre Bald, Enrique Blanco Armas, Ahya Ihsan, Faisal Siddik, Harry Masyrafah,

Jock McKeon, Dewi Ratnasari

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

Table of Contents



Focus on Aceh 17

Focus on Nias 21

Meeting Vital Needs 27

Protecting the Most Vulnerable 28

Housing and Settlements 29

Land and Spatial Planning 32

Providing Social Services 35

Institutional Development 36

Child Protection 37

Education 38

Health 40

Managing Disaster Risk and

The Environment 43

Disaster Risk Reduction 44

Managing Environmental impact 46

Establishing Infrastructure 51

Enabling Infrastructure 52

Water Supply 54

Sanitation 54

Irrigation 55

Power 55

Funding the Recovery 67

Financing in 2006 68

Sectoral Allocations and Gaps 69

Disbursements and Allocations 71

The Challenges Ahead 72

Managing the

reconstruction 75

The Regional Programme 76

Coordination with Stakeholders 78

Information Management 78

Tim Terpadu External Services Team 79

Logistics, Supply Chain and Shipping Services80

Promoting Quality,

Integrity and Equity 83

Quality Assurance 84

Integrity and Counter-Corruption 85

Public Information 86

Gender Equity 88

Looking Ahead to 2007 89


Abbreviations 96

Glossary 99

Financial Methodological Note 100

2 Year Progress Data 101

Improving Livelihoods 57

Aceh’s Economy 58

Private Sector Development 59

Rural Livelihoods 62

Aceh and nias t wo years after the tsunami


On December 26, 2004, the most powerful earthquake

in 40 years struck in the Indian Ocean, 150 km off the

coast of the Indonesian province of Aceh. Of the 12

nations hit by the resulting tsunami, Indonesia suffered

the greatest: 130,000 people were confirmed dead and

37,000 missing. An additional 500,000 were displaced. The

physical damage was inconceivable; 800 km of coastline

was devastated, entire villages were obliterated.

On March 28, 2005, another tragedy struck when an

earthquake hit off the coast of Sumatra, near the island

of Nias. Nearly 900 people died as a result, the majority

of buildings and infrastructure suffered damage, leaving

some 40,000 displaced.

The Aceh and Nias disasters wrought massive damage

to infrastructure, schools, hospitals, the environment the

economy and devastated communities. Initial estimates

to rebuild Aceh and Nias came in at USD 4.9 billion,

which adjusted for current levels of inflation is the

equivalent of USD 6.1 billion: the human costs can never

be calculated.

The global community responded swiftly and generously.

More than USD 7 billion of aid was pledged, with more

than 500 organizations from more than 40 countries

working on the recovery effort. The Government

of Indonesia stepped up immediately with financial,

practical and governmental support. With the hard work

and outpouring of support from Indonesia and around

the world, the relief phase was tremendously successful

at addressing the immediate concerns.

The Government of Indonesia anticipated the

reconstruction and rehabilitation phase that was to

follow the relief phase, initiated a master plan and

established the Reconstruction and Rehabilitation

Agency of Aceh and Nias (BRR). This agency, established

by Presidential decree, headquartered in Banda Aceh,

was tasked to restore livelihoods and infrastructure and

strengthen communities in Aceh and Nias by directing

a coordinated, community-driven reconstruction and

development programme.

The joint effort so far in reconstructing Aceh and Nias has

been an enormous undertaking. The initial relief efforts

of 2005 were followed by extensive reconstruction

works that continue to date, and that have had to

overcome significant obstacles both related to the sheer

extent of the damage and also to the scale and speed

of response. This report describes the accomplishments

of the many partner agencies – international, national

and local stakeholders - that have worked so hard from

through 2005 to 2006 to rebuild Aceh and Nias.

Aceh and nias t wo years after the tsunami


Meeting Vital Needs

Activities in 2006 reflected the successful

and appropriate transition from relief

to recovery and reconstruction. Specific

interventions continued to help meet the needs of the

most vulnerable: The Temporary Shelter Plan of Action

(TSPA) ensured all IDPs were able to move out of tents

and into transitional housing by mid-2006, delivering

more than 11,000 shelters under that programme. WFP

continued support to combat micro-nutrient deficiencies,

particularly among schoolchildren.

Housing reconstruction in 2006 made

significant progress, but continues to face

challenges. House construction, though slower than

expected, has continued throughout 2006, with around

57,000 permanent houses complete in December 2006

supplemented by almost 15,000 temporary houses

(including from TSPA), representing 50% of the overall

housing reconstruction needs. However, delivery

continues to expose weaknesses in alignment of spatial

and infrastructure planning with construction, quality

of construction and capacity of building contractors,

and land titling. As was the case in 2005, 2006 has seen

declining commitments to rebuild due to increased

costs and unexpected delays, highlighting a pressing

challenge to meet all identified permanent housing needs.

Between March and May 2006, BRR issued Housing

and Settlement Guidelines to deliver a housing and

settlement programme that reflects and accommodates

the specific needs and priorities of various beneficiary

groups – including squatters and renters. Settlement and

connecting infrastructure has not always been provided

along with housing, and has highlighted the need for more

systematic and coordinated settlement development. The

need for increased quality assurance and monitoring to

ensure construction of durable permanent housing has

also emerged.

Land availability and tenure, and efficient

spatial planning are critical issues in the

sustainable reconstruction and rehabilitation

of Aceh and Nias, having direct implications on the

capacity to deliver the development of infrastructure,

restore livelihoods and reconstruct housing. Land titling

and spatial planning processes have continued at steady

pace through 2006 but have not accelerated as much as

was hoped at the end of 2005 and greater intervention

is required. The BRR and BPN joint land-titling policy is a

strategically important initiative that has been developed

to help ensure that men and women have equal rights

in land ownership, and to promote equal access to the

associated economic benefits. BRR will be working

closely with BPN and local government to ensure the

joint land-titling policy can be effectively implemented.

Providing Social


With the aim of “building back better”, it is

important to develop institutional capacity

to enhance the local administration and

support the sustainable development of Aceh

and Nias, ensuring effective provision of the

full range of social services. Capacity-building

in the recovery programme includes the provision and

equipping of health, education, administration, justice and

police facilities and the development of human resources

such as the recruitment and training of staff. Progress

has been made in physical reconstruction works, and

in filling civil service positions across the spectrum

of departments. However, the current emphasis on

physical delivery of buildings and equipment needs to be

complemented by staff development in administration,

governance, medical and education programmes.

Child protection is an important issue in the

recovery of Aceh and Nias as the earthquake

and tsunami increased the vulnerability of thousands

of children. Significant work has been done in tracing

and reunification, and through the establishment of 21

Children’s Centres. Specific initiatives are underway to

help the government, police and social services to adopt

more child-sensitive practices and protect children from

abuse and exploitation.

Achievements in the education sector have

continued throughout 2006, with almost 750

schools built so far, and the vast majority of children

Aceh and nias t wo years after the tsunami

in school across Aceh and Nias. Initiatives to support

improved quality in education have begun through

teacher training programmes and the establishment of

Early Childhood Development (ECD) centres. During

2006 the framework for longer term improvements in

Aceh were defined through the Aceh Five-Year Education

Strategic Plan (2007-2011), which is due to be approved

in early 2007.

Health service provision was supported by the

continued reconstruction and rehabilitation

of health facilities and infrastructure. A total of

324 health facilities have been repaired or reconstructed

and efforts to improve the quality of available health

services have begun through the training and capacity

development of key health workers. For the longer

term a broader strategy is required to improve the

implementation of safety net policies and the development

of preventative health care strategies.

Managing Disaster

Risk and THE


Disaster risk reduction is a key factor in

a sustainable recovery. A comprehensive

framework is being prepared, along with a

number of activities already underway including a sea

defence programme, to protect coastal environments

and support the safe reconstruction of housing and

rehabilitation of agriculture, and the Tsunami Early

Warning System (TEWS). Particular areas for concern

include community awareness and use of communitybased

planning to provide safe areas and escape routes,

and quality of building construction. Flood management

and drainage problems are emerging, indicating need for

better drainage maintenance, including by households,

and that drainage has not always been integrated into

settlement design. Urban drainage schemes are underway

but under-resourced.

Both the disasters and the reconstruction are

having significant impact on the environment,

including water contamination, rehabilitation of land

and coastal eco-systems, waste management, extensive

timber logging and sand and gravel extraction. The

Tsunami Recovery Waste Management Programme

(TRWMP) has supported the resumption of municipal

solid waste management services and the development

of tsunami waste recycling initiatives. More capacity

is needed to undertake project environmental impact

assessments in the reconstruction effort, and for

longer term environmental management. A Strategic

Environmental Framework (SEF) has been developed to

outline polices, structures and operational guidelines to

support environmentally sound reconstruction.



The infrastructure base in Aceh and Nias

remains insufficient to support fully the

reconstruction process. Over 1,500km of roads

have been constructed, but remote areas are still

isolated without transport networks, particularly for

building supplies. Works on the main West Coast road

are underway. Good progress has been achieved in

getting all airports and seaports operational, including

completing new construction at Malahayati port and

Meulaboh jetty. Some ports only have temporary

facilities and will need to be upgraded, but designs

and improvements are underway for various strategic

locations. Similarly airports are operational, whilst

improvement works are going on. Investments in roads,

air and sea terminals is important both for the huge

supplies being transported during reconstruction, and

also for economic development.

Significant work has been completed to

improve water supply and sanitation, with

many agencies upgrading facilities provided during

the emergency phase. More consideration is needed

of the longer-term availability of water sources and

the sustainability of sanitation systems. Restoration

of power supply is underway, already serving urban

areas consistently, and major rehabilitation of irrigation

systems is being carried out, which will also contribute

to recovery in the agriculture sector.

The Infrastructure Reconstruction Enabling Programme

started tenders for consultants in 2006, and together

with the co-funded Finance Facility will be a vehicle

for broader and more strategic planning, design and

management of infrastructure development.



The tsunami and earthquake disasters have

had a pronounced effect on the economies

of Aceh and Nias, both in terms of damage to

industry and infrastructure and the economic impact of

reconstruction activities. There was a 13% decrease in

the overall growth rate of Aceh in 2005, but this included


2006 Progress Report

a worrying decrease of 9% in the agricultural sector,

exacerbating rural poverty, along with a 45% increase

in transport and communications, likely to be due to

the reconstruction activity. During 2006, although wages

have increased in Aceh, the rate of inflation shows prices

have risen more sharply in the province than the rest of

Indonesia. The increased cost of living offsets the benefits

of higher wages. The volume of imports that resulted

from large-scale reconstruction, coupled with decreased

export capacity, has resulted in a considerable trade

imbalance in the province. Engaging provincial and local

government in the ongoing development of a sustainable

and long-term Economic Development Strategy for

Aceh is helping to support an effective transition to

longer-term development planning and ensuring future

economic growth in the province.

Private sector development initiatives

are underway and are intended to support the

participation of local businesses in the reconstruction

effort, and to develop local business skills and capacity

for the longer-term. Nias continues to have a weak

infrastructure base to support business, and Aceh has

had a difficult business environment for years linked to

the conflict. The Law of Governance of Aceh (LOGA)

presents a major opportunity to improve the enabling

business environment. Specific initiatives to improve the

capacity of and opportunities for local small and medium

enterprises include the provision of microfinance and


Restoration of rural livelihoods is critical to

support the effective transition from the

relief phase to longer-term development,

as half of the rural population is living in poverty.

Rehabilitation of 50,000 hectares of agricultural land

is a major achievement, but investment is urgently

required to tackle poverty and realise the potential of

the agriculture and fisheries industries.

Funding the


A more up-to-date assessment of financing

needs based on changes in operational

costs, inflation and other factors is probably

necessary. The financial in-flows to support

reconstruction after the tsunami were unprecedented

with USD 8 billion committed from the Government of

Indonesia, NGOs and donors. The initial damage and loss

assessment of USD 4.5 billion is adjusted to USD 6.1

billion with inflation. Approximately USD 2 billion has

been disbursed up to end of 2006. Significant gaps remain

across sectors and in some geographical areas including

the west coast, south, and Nias. With almost 75% of

funds already allocated to projects there is less scope

for major adjustments to match outstanding needs.



During the early part of 2006, BRR made the

significant decision to develop and pursue a

decentralised programme, with widespread

stakeholder support. The regional approach was

adopted to help ensure reconstruction and rehabilitation

in Aceh and Nias is sustainable, to work closer with

local government in preparation for BRRs exit, and to

be better informed about needs and priorities at local

level. Regional heads were appointed mid-2006, and Joint

Secretariats with local government are being set up. So

far, the coordination and Joint Secretariat establishment

have been constrained by the emphasis in BRR on

implementation of government projects.

Coordination has continued to improve

during 2006, including through the establishment

of the Kecamatan Coordination and Implementation

Mechanism (KCIM), and multi-stakeholder participation

in sectoral working groups at both provincial and

district level. At sub-district level the establishment of

the KCIM in many parts of the West Coast has been

critical in supporting the BRR regionalisation strategy.

Engaging local stakeholders, the KCIM provides the

facility to collect locally generated information through

the Kecamatan Reporting System (KRS) to enhance

planning and coordination, and engage locally available

capacities to resolve constraints. Sectoral coordination

at district level has been strengthened through the active

participation and leadership of local government.

Information is a vital enabler for the

recovery effort and for longer term planning.

Considerable efforts and resources have been deployed

to strengthen information management through ongoing

technical improvements to the publicly accessible RAN

Database, the transition of the Spatial Information and

Mapping (SIM) Centre to BRR and continued support

from UNORC through the creation of the Information

Analysis Section (IAS). The IAS has also facilitated

the Indonesian Government’s participation in the

international TRIAMS initiative to collate recovery data

from all tsunami affected countries. Efforts to improve

information management have focused on improving

Aceh and nias t wo years after the tsunami


the quality and accuracy of available data, supporting the

analysis of information to support effective coordination

and planning, building long-term capacity in information

and analysis amongst local government institutions and

supporting regional offices and Joint Secretariats to

enhance the monitoring of recovery and reconstruction

activities across Aceh and Nias.

The Tim Terpadu external services team has

provided support throughout 2006 to assist foreign

nationals and organisations working in the recovery

effort. It is the first initiative of its kind in Indonesia,

established in December 2005, streamlining Immigration,

Customs, Legal and Consular services, provided free,

and incorporating various legislative measures to assist

the international community. In 2006 more than 7,000

individual immigration requests have been processed.

Logistics are central to reconstruction

activities. Transport in particular continues to present

major challenges, but significant progress has been made

in the supply of timber, including help desk facility and

other support services under Tim Terpadu, and in the

establishment of the Shipping Service managed by WFP.

The potential impact of the ongoing reconstruction of

housing and upcoming major infrastructure projects

on the supply chain remains a concern. NGOs have

shouldered many logistical difficulties and learned from

experience, however many NGOs and their contractors/

sub-contractors still lack logistical capacity, which could

make their delivery vulnerable to further pressures on

the supply chain.

Promoting Quality,

Integrity and Equity

2006 has seen increasing understanding

about quality problems. Of particular concern is

poor construction quality, in general as a result of low

contractor capacity and poor supervision. The problems

are recognised and being addressed through training and

monitoring, but partners must continue to be vigilant

and ensure that resources are assigned. BRR and others

have learned lessons about the procurement processes

needed for this scale and speed of reconstruction, and

BRR were provided with a special decree to make

direct appointments to contractors to speed up housing

delivery. Anti-corruption remains a prime concern in

the recovery programme. BRRs Anti-Corruption Unit

processed over a thousand complaints in 2006, and the

presence of the Supreme Audit Agency and Corruption

Eradication Commision in Aceh maintains the high

profile of counter-corruption initiatives. BRR is actively

working with partner organisations to ensure complaints

management systems are in place and effective.

Good public information is vital. Agencies that

have succeeded in maintaining a dialogue with the

beneficiaries with whom they are working have found that

given proper information and explanation, beneficiaries

are willing to show patience and understanding when it

comes project implementation.

In response to concerns regarding gender

equity, BRR launched its policy and strategy

paper on “Promoting Gender Equality in the

Rehabilitation and Reconstruction Process”.

The paper has been developed in partnership with other

stakeholders, including the Gender Working Group and

a coalition of women’s organisations, to support gendermainstreaming

in policy development, planning and

implementation across all sectors. Short term priority

programmes, with a specific focus on the most vulnerable

women, need to be developed.

Looking Ahead

to 2007

In meeting vital needs for housing, validation

of beneficiaries and land titling are two

critical bottlenecks that need attention in

2007. Coordination in the housing sector has improved

but housing and planning need to be better integrated

with other sectors, and activity in 2007 needs to follow

a review of gaps in housing provision and associated

infrastructure, particularly in remote areas. More

investment is required in quality assurance, and in

incorporating environmental and disaster risk concerns

in settlements.

The provision of social services will be

enhanced through programmes to develop

the capacity of local government and

institutions. Following provision of equipment and

construction of facilities, the government needs to

develop capacity to manage those assets well and improve

quality of services by developing human resources and

management systems.

Managing disaster risk and environmental

impact are central to “building back better”.

The broad frameworks drafted for each should be

ratified and implemented in early 2007, to improve

the integration of both disaster risk reduction and

environmental management across the reconstruction


2006 Progress Report

programme. Additional capacity is needed to tackle

the bottleneck of environmental impact assessments

required for all projects.

In infrastructure, the IREP programme and

finance facility will start to deliver in 2007. It

will demonstrate the model for improving infrastructure

planning and implementation for reconstruction,

for longer-term investment to support economic

development and to link government capacity building

with physical development.

Livelihoods in Aceh and Nias are still

vulnerable, and interventions in 2007 must

start to address the long-term economic

impacts of the tsunami and reconstruction

process and poverty reduction. Critical

attention must also remain on enhancing the livelihood

opportunities in the short-term, particularly in agriculture

and fisheries where major investment is needed given

the extent of rural population living in poverty. Provincial

and local governments need to develop and articulate a

common vision about the economic development of the


Effective management of reconstruction

in 2007 and beyond is dependent on BRR

leadership, continued and better coordination

and improved information management. All

agencies must be increasingly careful and rigorous in

setting realistic targets, demonstrating real progress

and results, and finding ways to work effectively with

local government to achieve the right balance between

the process of enhancing capacity and the delivery of


2007 will include the planning of transition

and exit strategies, and for some agencies

the implementation of those strategies. The

recovery programme will continue to become more

broad-ranging and complex as it addresses crosscutting

themes and longer-term development goals.

Communities are key partners in looking beyond the

reconstruction to developing the longer-term goals for

economic and social development in Aceh and Nias.

Aceh and nias t wo years after the tsunami



2004 Damage 2005 & 2006 progress


• 167,000 dead or missing

from tsunami

• 500,000 displaced from

homes in Aceh

• 900 dead and 13,500 families

displaced after March 2005

earthquake in Nias.

• 80,000-110,000 new houses in

Aceh needed and 13,500 in Nias

• During 2006, more than 65,000 IDPs have been

moved out of tents into transitional housing

• 15,000 transitional houses built

• 57,000 permanent houses will be built by

the end of 2006 in Aceh and Nias

• 17,400 land titles have been signed and 134,300

parcels have been measured, all in Aceh


• More than 2,000 school

buildings damaged

• Approximately 2,500 teachers died

• More than eight hospitals

damaged or destroyed

• 114 health centres and subcentres

damaged or destroyed

• 623 permanent schools in Aceh and 124 in Nias built/

repaired, supplemented by 379 temporary schools

• More than 5,100 teachers trained in Aceh

and 285 teachers trained in Nias

• 305 health facilities in total built/rehabilitated in

Aceh and 19 in Nias – including satellite health

posts, health centres and sub-centres damaged in the

disasters and 3 hospitals in Aceh and 1 in Nias


• 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

2004 Damage 2005 & 2006 progress


• 3,000 km of roads impassable

• 14 of 19 seaports badly damaged

• 8 of 10 airports damaged

• 120 arterial bridges destroyed,

1,500 minor bridges

• 1,200 km of all type of roads in Aceh and 300

km in Nias have been built/repaired.

• 121 bridges in Aceh and 37 in Nias have been repaired

• All ports operational; 11 ferry terminals and harbours in

Aceh and 3 in Nias are built/under development

• All airports operational; 5 airports and 1airstrip in

Aceh and 2 in Nias built/under development.


• USD1.2 billion damage

to productive sector

• Projected economic decline

of 5% in Aceh; 20% in Nias

• 100,000 small business persons

lost their livelihoods

• 4,717 coastal fishing boats lost

• More than 20,000 ha fish ponds

destroyed or out of action

• 69 % of the male labour force and 36 % of the female

labour force actively engaged in urban areas.

• 68 % of the male labour force and 45 % of the female labour

force are working in rural areas of both Aceh and Nias.

• 4,420 fishing vessels have been replaced

• 6,800 ha of fishponds rehabilitated

• More than 50,000 ha of agricultural land have been rehabilitated

• 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 t wo years after the tsunami


Focus on Aceh

Statement from the Governor

of the Province of Nanggroe

Aceh DarusSalam,

Dr. Mustafa Abubakar


The earthquake of December 2004, and the huge

tsunami it generated, created widespread destruction

and devastation throughout the province of Nanggroe

Aceh Darussalam. As a result, it brought forth one of

the greatest humanitarian outpourings in living memory.

USD 8 billion was pledged for Aceh and Nias relief and


To effectively manage the unprecedented level of

financial assistance pledged by the global community in

the face of a weakened local government, the Agency

for Reconstruction and Rehabilitation (BRR) Aceh and

Nias was established and commenced operations in

May 2005. As the designated Vice Chairman of BRR,

it is my responsibility to assist in the Agency’s optimal


Three months after BRR initiated operations in Aceh,

we experienced another effect from the natural disaster

of December 2004. Although a direct cause and effect

relationship is difficult to determine, it is without

question that the disaster was instrumental in bringing

together GOI and GAM for the historic signing of the

Helsinki Peace Accord in August 2005.

To facilitate implementation of programs geared toward

reconciliation and reintegration, I created in February

2005 the Aceh Peace-Reintegration Agency, BRA. As the

Chairman of BRA, it is my responsibility to oversee the

successful implementation of initiatives that will foster

the reintegration of ex-combatants, non-combatants and

amnestied prisoners into civil society and to undertake

integrated programs aimed at generating employment

and improving livelihoods for thousands of victims

affected by this decades-long conflict.


The massive reconstruction and rehabilitation effort

that has been on going for nearly two years has achieved

much. Success stories and challenges we still face are

dealt with in other sections of this commemoration

report. However, I do want to make special mention of

the goal I set to have all those living in tents be moved to

temporary shelters by mid-2006. I can proudly say we

successfully achieved this objective, a combined effort

between the provincial and district governments working

in close coordination with UNORC and a number of

other partners.

Building of permanent housing is well underway. The

challenges we faced in providing homes as soon as

possible has meant that we did not have the luxury of

time to do rigorous and detailed spatial planning with

construction sometimes outpacing sound planning.

However, I and partner agencies in the reconstruction

process will focus in 2007 on correcting any weaknesses

in planning to ensure that our communities and their

settlements are being developed and provided with

services in a sustainable way.

We are also implementing key initiatives addressing

the equally important reconciliation and reintegration

process, ensuring the peace created through the August

2005 Accord is sustained.

For many months these two processes have operated

fairly independently of one another. Yet the objective

at the end of the day is to build back a better Aceh.

Knowing that this is our ultimate goal, I view myself as

the “development integrator” trying to slowly merge

these two interdependent processes into a coherent,

comprehensive development strategy for the entire


On one hand, I have the BRR focusing on the critically

important reconstruction and rehabilitation process,

a process leading to prosperity. One the other hand,

I have the BRA addressing the difficult challenge of

reintegration, a process leading to security. It is my

intention and desire to initiate stronger synergy between

BRR and BRA activities.

We often hear that there can be no sustainable

reconstruction and rehabilitation without peace and no

sustainable peace without a solid reconstruction and

rehabilitation process. Aceh is living proof how true this

statement is.

Successful reconstruction and rehabilitation through

BRR remains the number one priority for Aceh. Within

this priority, the rebuilding of major infrastructure is

certainly the most important component.

Although rebuilding infrastructure throughout the

province is critical, current and future focus must be on

expanding opportunities for local economic development

and employment generation.

On December 11, 2006 Aceh held its first ever democratic

election. Millions of people selected who they wanted to


2006 Progress Report

Focus on Aceh

professionally, honestly and transparently govern their

fifteen districts, four municipalities and one province

for the next five years. Unique to Aceh, and to all of

Indonesia, was the opportunity for candidates to run

under independent party banners. This democratisation

process is key for the long-term health of the province.

I also declared 2006 as the Year of Eliminating Corruption

in the province, a worthy goal that has proven difficult to

achieve but absolutely necessary if we are to build back

a better Aceh.

Civil service reform is a priority. I have implemented

a number of important initiatives in the interests of

transparency and accountability. In appointing those

to the highest levels of local government, in particular

mayors and district heads, care is taken to ensure

they support and implement my programme of clean

government. I have also developed an appropriate

performance-based incentive programme for staff, built

in to our HR procedures. And finally, all civil servants,

whether those currently serving or newly recruited, are

required to support and uphold efforts at anti-corruption.

I am working with the BRR and others more broadly in

improving the overall performance and capacity to serve

communities in Aceh. Civil service reform is not just a

slogan; it is a reality.


The prosperity generated from the huge inflow of

financial resources for reconstruction and rehabilitation,

the dividends to be gained as a result of the peace

accord, and the passing of the Law on Governing Aceh

collectively create unprecedented opportunities for us

as we move forward.

There is a critical need for developing Acehnese human

resources, in particular within the government structures

and the private sector; wherever and whenever possible,

utilization of local resources must be prioritized.

Capacity building is not just an outcome but a process

that requires sufficient time for it to achieve its expected


We shall use 2007 to initiate a comprehensive planning

process, including instituting appropriate financial

management processes and procedures, in preparation

for the receipt of additional funds generated from

receiving 2% of the national general allocation fund

(DAU). The funds coming in 2008 and onwards will be


We shall also focus on designing an appropriate BRR exit

strategy. There must be a gradual transition from the

current situation with BRR leading up to their exit in

2009. An abrupt departure without any forward planning

must be avoided at all cost. Fortunately, we have

sufficient time to implement the components of a solid

exit strategy. But we cannot be complacent thinking this

process will unfold on its own. It must be driven by solid

leadership and an assurance that the numerous capacity

building measures have been properly instituted.

Finally, I want to express my sincere appreciation to all

the stakeholders (domestic and international) who have

invested so much time, money and human resources

to implement initiatives under the rehabilitation and

reconstruction umbrella and likewise to our colleagues

involved in providing assistance targeted for the

undertaking programmes as part of the complex and

challenging reintegration process.

This spirit of global solidarity has made it easier for those

of us in Aceh to again be outward looking as opposed to

the many years we spent isolated from the international

community. This is truly the dawning of a New Aceh.

Aceh and nias t wo years after the tsunami


Focus on



Recovery in Nias

Only USD 235 million has been pledged for Nias although

USD 400 million is required to repair damage. However,

given the poor state of Nias prior to the disasters,

an estimated investment of USD 1 billion is needed

– half of which is required for rebuilding transport


Rebuilding the economy is best served by implementing

physical reconstruction as soon as possible and

accompanying it with the restoration of livelihoods

which are heavily dependent on small-scale fisheries

and agriculture, and which were weak prior to tsunami

and earthquake due to isolation from the markets. Many

international agencies are concerned about livelihoods

and are contributing through replacement of lost assets

and services. Restoration of coastal tourism is another

neglected opportunity for Nias.

The gradual recovery of Nias is visible in the rehabilitation

and reconstruction of roads, bridges, houses and

institutions. In 2006 housing construction has significantly

picked up, with almost 5,400 new and 350 non-permanent

houses built by end 2006. The recovery programme in

Nias is supported by 42 International NGOs, 24 National

NGOs, 13 United Nations agencies, 8 government

agencies and many others collectively seeking to realize

the goal of “Building Nias Back Better”.

Nias directing its own Reconstruction

Implementing partners and BRR have devolved significant

decision-making to management based in Nias. It had the

first BRR decentralised regional office, established in June

2005. Whilst emergency relief and initial reconstruction

was provided by UN agencies, international and national

NGOs and the military, BRR’s decentralisation from

head office in Aceh to Gunung Sitoli brought the BRR

reconstruction programme decision-making closer

to local government, implementing partners and

communities. BRR is now establishing a representative

office in Teluk Dalam in the south. Having the authority

to direct recovery has enabled organisations to work

together more efficiently, and in turn allow decisionmaking

at the sub-district level and by people in the

field. Field managers can be given discretion to cater

to individual family needs in housing; to consider the

needs of pedestrians and landowners beside roads; or

to work directly with school committees. The BRR-

ADB partnership is emphasising the redevelopment of

coastal livelihoods through its participative programme

of community contracts backed by technical advice for


2006 Progress Report

BRR Nias is giving priority to making the district

government systems work, especially using the

government funds that flow through BRR to provincial

and district level administrations. Through block grants,

BRR supports and strengthens local governments

to assume responsibility, particularly for meeting the

middle-level infrastructure needs. If local governments

are particularly weak or failing to perform well, BRR will

invoke its own direct implementation capacity to ensure

the pace of reconstruction is maintained.

A data retrieval programme has been launched to

record information from Nias regarding nutrition, life

expectancy, mortality rates, health and livelihoods.

Supported by several international organizations, BRR has

also conducted a local survey and training in information

management, aiming to ensure that the statistical

information gathered can be used by local government

to plan appropriate development programmes in future.


Coordination between BRR, the UN agencies, and the

international and national NGOs has strengthened over

the last year in Nias. Working remotely on an island

with the poorest and most underdeveloped districts

in North Sumatra Province has encouraged closer

cooperation and solidarity between the organizations

who are working on recovery projects. All share the

same challenges – damaged infrastructure, poor or

non-existent communications, and logistical difficulties.

Coordination and cooperation is vital. Consideration

for cultural and language issues in coordinating the

implementation of projects with communities, village

heads and traditional cultural leaders has been one of

the most difficult and challenging tasks, especially given

the complex land ownership and access problem in Nias.

However, the improvements in coordination are making

a difference in getting support to the poorest and most

marginalized communities and in finding solutions to the

many problems that organizations face in carrying out

their projects.

At a district level, early 2006 saw a transition between

the humanitarian coordination meetings that had been

convened by BRR and UNORC (previously by OCHA

in 2005) and the establishment in April 2006 of BRR’s

Recovery Coordination Meetings in Gunung Sitoli. These

meetings have provided organisations with an opportunity

to be briefed on BRR’s on-going reconstruction plans

and to raise issues affecting the implementation of their


Focus on Nias


Nias’ isolation means building materials are either difficult

to obtain in sufficient quantities at affordable prices for

the local population, or periodically unavailable. Sporadic

fuel supplies at exaggerated prices and remoteness from

markets have increased Nias’ economic problems. In

most cases, the primary cause of supply shortages is

insufficient and irregular shipping services on the main

supply routes. The port facilities in Gunung Sitoli are too

small to handle the volume of materials being shipped

and as a result it is extremely congested. The new jetty in

Gunung Sitoli offers an alternative to the main port, but

the jetty can only service small conventional vessels.

For inland transport in Nias, the key bottlenecks are the

sporadic deliveries, lack of fuel pumping stations, high

cost, small size and capacity of the trucking fleet, the

poor state of the road infrastructure, and the lack of

road access to many communities. The material flows

required to complete the reconstruction activity will

require additional trucks, better roads and an improved

fuel supply.

One of the biggest challenges of 2006 has been

coordinating the logistics of bringing in large supplies of

timber to Nias for permanent housing and temporary

shelter construction, as well as for boats. UNHCR in

Nias and Medan purchased and shipped legal supplies

of timber from Kalimantan. With logistical support from

WFP Shipping Service and IOM’s trucking fleet and

despite all the insurmountable obstacles and delays they

distributed 390,038 pieces of timber (or around 7,000

cubic metres) to 11 organizations with construction

projects throughout the island, including to BRR. Similarly,

the IFRC’s operations to provide steel frames and bring

in supplies of timber from international sources to build

temporary shelters for those IDPs still living in tents

was an enormous undertaking that would not have been

successful without the close coordination between the

IFRC, UNORC, BRR and the international and national


Aceh and nias t wo years after the tsunami


Special Considerations for Nias Housing

Even before the disasters, many settlements had

inadequate sanitation and access to clean water, despite

a large number of springs and small rivers. Limited

sanitation is exacerbated by poor hygiene practices,

people using the backyards and gardens as places to

throw both their domestic solid waste and waste water.

The resulting environment creates an ideal breeding

ground for malaria, cholera, dysentery and other

intestinal diseases. The Nias housing project, therefore,

provides a real opportunity to “build back better” by

integrating improvements of access to clean water and

better sanitation, and educating the public to the risks of

current habits, and ways to reduce potential hazards.

Housing delivery in Nias aims to work with traditional

social systems, considering that traditional leaders still

have considerable influence. The dominant form of land

rights is adat, or traditional rights, where land is owned

by the clan and the right of use is controlled by local

leaders. In this system, the position of women’s property

rights is weak even though their presence as working

contributors to family economies is strong. Unlike Aceh,

inheritance of rights to land and property is through

male survivors. BRR Nias is working to ensure special

efforts are made to ensure that women do not lose

out in receiving assistance, especially widows and single

women heirs.

Sensitivity to local traditional architecture and village

planning is important in both rehabilitating and building

new housing. Traditional Nias settlement layout includes

a broad stone-paved street, called an ewali which serves

multiple functions, including meeting areas for informal

and village meetings, and a hoso, for traditional stone

jumping. Many villages still have a substantial number of

traditional houses, many of which have been damaged

and need to be preserved, that preservation also being

in the interest of attracting tourism.


2006 Progress Report

Focus on Nias


2004 Damage 2005 & 2006 progress


• 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


• 755 out of 879 schools

damaged or destroyed

Two hospitals damaged and more

than170 facilities required repair

• 124 permanent schools built/repaired,

supplemented by 214 temporary schools

• 285 teachers trained

• 1 hospital and 19 health facilities rebuilt/repaired


• Nearly all water distribution

networks in sub-districts and

district capitals were damaged

• 3 bridges, 800 km of district roads and

266km provincial roads damaged

• 12 large and small ports/

jetties destroyed

• Rehabilitation of drinking water distribution

networks underway in 5 locations

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

• 37 bridges built/repaired

• 3 ports/jetties and 2 airports built/under development


• Irrigation networks damaged affecting

90% of people’s livelihoods

• 219 markets, shops and

kiosks destroyed

• 518 fishing vessels have been replaced

• 1,510 ha of agricultural land have been rehabilitated

• Irrigation projects underway in 13 villages

• 88 food stalls and temporary markets established

Aceh and nias t wo years after the tsunami



Vital Needs

2004 Damage 2005 & 2006 progress

• 167,000 dead or missing from tsunami

• 500,000 displaced from homes in Aceh

• 900 dead and 13,500 families displaced

after March 2005 earthquake in Nias.

• 80,000-110,000 new houses in

Aceh needed and 13,500 in Nias

• During 2006, more than 65,000 IDPs have been

moved out of tents into transitional housing

• 15,000 transitional houses built

• 57,000 permanent houses will be built by the

end of 2006 in Aceh and Nias

• 17,400 land titles have been signed and 134,300

parcels have been measured, all in Aceh


the most


The recovery and reconstruction, in particular that of

physical assets, during 2006 has picked up momentum

but certain vulnerabilities remain. The recovery

community must also continue to attend to the needs of

the most vulnerable even whilst the main focus in 2007

will continue to be the reconstruction of houses and

infrastructure and medium term development. Particular

care must be given to ensuring that the recovery and

reconstruction does not leave the most vulnerable

behind, but rather places their welfare at the forefront

of the recovery and reconstruction agenda.

Affected populations without

permanent housing solutions

With the recognition of the pace and constraints affecting

permanent housing delivery, the Temporary Shelter Plan

of Action (TSPA) was launched in 2005 to provide an

acceptable and appropriate transitional shelter solution.

The main component of TSPA was the provision of

up to 20,000 temporary shelter units provided by the

International Federation of Red Cross/Red Crescent

and delivered and constructed via a consortium of

33 implementing partners including BRR, Red Cross

Societies, NGOs, UN agencies and donor institutions.

Challenges have included the provision of water and

sanitation facilities and electricity, procurement of

timber and identification of relocation sites, but these

continue to be tackled by implementing partners and

the government, and the implementation of TSPA has

demonstrated excellent collaboration in providing

extraordinary assistance in response to the prolonged

and deteriorating living conditions of IDPs in tents. The

implementation of TSPA picked up speed during the

first half of 2006. Passing a milestone that all those that

started 2006 living in tents were out of tents and in

appropriate transitional housing by the middle of 2006 is

testament to this collaboration. To this date, over 11,000

temporary shelter units have been delivered

The CARDI Temporary Settlement Monitoring project,

which surveyed 439 temporary settlements between

August and October 2006, found over 18,500 households

remaining in barracks, and over 20,000 households

who have returned to their home area are not yet in

permanent accommodation. These households are mainly

living in shelters they have constructed themselves and,

like IDPs who remain in host communities, they are

more scattered and less visible. It is important that their

needs for adequate water sanitation, permanent housing

and assistance to restore their livelihoods are met.

BRR, local government and recovery organisations are

striving to improve the living conditions in barracks. IDPs

continue to move among varying transitional shelter

options. The challenge will be how to identify the most

vulnerable and apply targeted responses whilst ensuring

equity and fairness. A cross-sectoral beneficiary-focused

approach is needed to integrate the reconstruction

of houses, the restoration of livelihoods and the

maintenance of social safety nets so that beneficiaries

are assisted in building back their lives.

Micro nutrient deficiencies and

public health issues

The World Food Programme (WFP) commissioned a

cross sectional survey in 2006 in urban and rural areas

of Aceh Province and Nias to assess the health and

nutritional status of primary schoolchildren and their

cognitive performance . The survey results exposed that

in Aceh, the prevalence of malnourished children ranged

from a mild to high public health problem. Anaemia was

found in 27% of Acehnese children and 28% of Nias

children (moderate public health problem). As for the

proportion of sub-clinical vitamin A deficiency, Aceh

and Nias were 17% and 33% respectively. The vitamin A

deficiency was considered severe on Nias. Malaria and

helminthes infection were also very high on Nias, 46%

and 75% respectively. In Aceh the prevalence was 12% for

malaria and 53% for worm infestation. Further, the survey

revealed that the prevalence of underweight, stunting

and wasting in Aceh were 21%, 27% and 8% respectively.

While in Nias, the prevalence was 22%, 36% and 2%

respectively. The prevalence of stunting and underweight

in Nias was considered as a high public health problem

while prevalence of wasting was considered low. 20%

of primary school children in Aceh had low cognitive

performance. The percentage was higher among stunted

children. On Nias Island, 40% of the children surveyed

had low cognitive performance.

Recognizing the importance of mitigating micro nutrient

deficiencies and improving the cognitive performance

of schoolchildren, WFP continues to provide fortified

biscuits (fortified with 9 vitamins and 5 minerals) to

primary schoolchildren in 9 districts in Aceh Province

with a caseload of 300,000 students.

Further to the UNICEF nutritional survey conducted in 2005 that identified the prevalence of

underweight, stunting and wasting children under the age of 5 years in Aceh was 41%, 38%

and 8% respectively. While in Nias, the prevalence was 48%, 48% and 11% respectively


2006 Progress Report

Meeting Vital Needs

Housing and


Two years after the disaster of the December 2004

tsunami and the March 2005 earthquake, the housing

sector has shown significant progress but gaps still

remain. The sector suffered almost USD 1.4 billion in

damages, which accounted for over 30% of the overall

damage and losses. Hence, it will also require the most

intense and greatest of efforts to restore the province

to its initial state.

The housing sector poses the greatest short term

challenges for all donors, international agencies,

and NGOs which are involved in this mammoth

reconstruction task. Housing requirements were more

than 120,000 new houses and rehabilitation of almost

85,000, both medium and heavily damaged homes. Over

500,000 people were left homeless and until today, many

victims still continue to occupy barracks and other

temporary shelters despite all efforts to reconstruct

quality houses in the shortest time possible.

The housing reconstruction programme revolves around

key issues, namely:

• Households which completely lost their houses

and their land;

• Houses which have become non-repairable and

need to be rebuilt;

• Tenants who lost the accommodation they were

renting; and

• Squatters who lost their temporary shelters

To accommodate the different beneficiary groups created

as a result of the housing disaster, the BRR issued four

guidelines as part of the Housing Settlement framework

between March and May 2006 to provide a uniform

mechanism for all actors involved. The guidelines provide

clear and distinct compensation schemes for each of the


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 subdistrict

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 t wo years after the tsunami


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


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

Location of




Number of





with house and



(Due process


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


Banda Aceh

114 locations 6.7 ± 0.6 6.5 ± 2.0 6.6 ± 2.6


(“± …” indicates 1 standard


Building Code = 7.5

Unsafe < 6.25



requires score

> 5


accountable > 8

Due process not

achieved < 5

Source: UN Habitat. Full results available from

“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

Meeting Vital Needs

The Challenges

Getting people out of barracks into quality new houses

by December 2006 is proving to be more difficult than

originally perceived. The validation and verification

of beneficiaries to filter out the fraudulent and nonlegitimate

claims is an extremely time consuming

exercise and has caused unwanted delays in the overall

reconstruction. Other key issues directly affecting the

programme include:

Land tenure and ownership: The reconstitution of

land tenure and titles has been slower than expected and

further complicates the classification of the beneficiaries.

Land disputes amongst surviving households on one

hand and the paucity of land titles traditionally in most

areas of Aceh further exacerbate the situation.

Damaged land: Due to permanent flooding on some

former housing sites and because of other topographical

changes, almost 12,000 families will require relocation

to new areas. This requires land acquisition as well as

every beneficiary’s consent to be moved.

BRR Housing and Settlement Guidelines









Renters and


(No. 21)


Heavily damaged homes

receive once-off 50% cash

award of a new Type-36

house and medium damaged

ones receive 25% of the


A new house with price

range of IDR 60 million up to

IDR 78 million depending on

the area.

Depending on the victim’s

status prior to the tsunami,

BRR will assist with land

acquisition and resettlement.

A one time cash payment

equal to 40% of the value of a

new Type-36 house.

Source: Rebuilding Lives in Aceh and Nias, Indonesia – Testing the Community Participation Approach

in Housing Reconstruction and Rehabilitation by F. Steinberg (ADB)

Construction materials and costs: Price hikes

and at times an apparent shortage of building materials

and lack of quality supplies has added a further burden on

the initial housing targets committed by the international

agencies and NGOs. Serious efforts have been also made

by the BRR and major agencies to ensure all timber used

is procured from legal and sustainable sources. Many

houses have already shown signs of severe degradation

due to untreated and weak quality timber used.

Provision of adequate infrastructure: Many

donors and NGOs have focused on the provision

of housing with limited investment in associated

infrastructure. This is in part understandable, given

the mandates and profiles of NGOs and that villagers

have indicated that their primary need is housing. The

community-based approach to housing development does

not lend itself easily to the provision of a coordinated

network of primary and secondary services managed by

local government and utilities. NGOs were encouraged

to and did invest in basic community level infrastructure,

however in 2005 much housing construction started

without the provision of basic services (water supply,

drainage, sanitation, power and lighting, roads, and solid

waste disposal). BRR, local government and donors

must ensure that systematic and coordinated plans

are brought into alignment, linking settlements with

infrastructure networks at primary, secondary and

tertiary levels, including water and sanitation, drainage,

and roads. Infrastructure plans must be developed and if

necessary retrofitted for housing or settlements already


The overall challenge still remains that of building houses

with high quality and anti-seismic standards (according

to Government of Indonesia scale of 6 for Aceh and

5 for Nias). Quality and robustness of construction is

a concern in both community and contractor based

construction. Several actors have struggled to maintain

high monitoring and evaluation standards which has

resulted in some non-durable houses, including cases

where recently-built houses have become uninhabitable

prior to the beneficiary occupying the premises. The

ability to build a quality house as part of a properly

serviced settlement is the primary goal in the coming

months and years.

Two-Year Results

During 2005 in particular and to a lesser extent in 2006,

there was a decline in commitments to meet the total

housing needs, due to revisions in programme plans

based on improved budgeting and understanding of

Aceh and nias t wo years after the tsunami


operational constraints. NGOs and other implementing

agencies are not making additional commitments to

undertake further housing projects due to lack of funds

and downsizing of their operations. As at November

2006, a total of 50,000 permanent houses had been

completed, with around 57,000 due by the end of 2006.

Out of a total of more than 120,000 required it means the

reconstruction effort is reaching the half way mark for

delivery needed since the December 2004 disaster. The

permanent houses delivery is supplemented by 15,000

transitional houses that provide adequate housing for a

3-4 year period but more than 60,000 permanent new

houses still remain to be completed.

The trend of declining commitments and the progress of

the housing construction to date highlights some issues

which need to be addressed immediately to prevent a

further slowdown of the reconstruction programme.

• Only 80% of the total requirements have been

committed by the NGOs and the international

agencies which mean a shortfall of 20%, possibly

more, remains.

• The likelihood of commitments not being realised,

or scaled down, has not always been communicated

to or absorbed by BRR in a timely manner, which

has put a further strain on the reconstruction as it

has affected future planning and programming.

• The issue of rehabilitation of damaged homes seems

to be overlooked as providing cash compensation

as per BRR guidelines is not a preferred model by

implementing partners, who find it easier to build

new properties.

• Providing for community and inter-settlement

infrastructure as an integral subset of the housing


Land and



The dramatic destruction of over 800 km of the

Acehnese coastline greatly affected the primary urban

centres of Banda Aceh, Calang, and Meulaboh. The

tsunami wave not only claimed people’s lives but with

it destroyed precious vegetation, fertile soil, habitat,

sensitive estuarine areas, and groundwater. Almost two

years after the tsunami, proper spatial plans for Aceh

and Nias are still being prepared with the aim of reestablishing

basic infrastructure services and support to

the communities and stimulating sustainable livelihood


To rebuild a better and safer Aceh and Nias, spatial

planning at the sub-district and village levels is crucial to

building back better. Although administratively districtplanning

is part of the provincial government’s planning

process, the BRR immediately recognized that spatial

planning at the sub-district and village level would be

the most efficient way of identifying needs and project

requirements. Approximately 90 sub-districts in Aceh

and another 22 in Nias are badly affected; BRR set the

priority of developing spatial and project plans across 60

sub-districts in the coastal area of Aceh and the island of

Nias defined as having the most urgent needs . Similarly,

712 villages have been identified as priority areas for

planning purposes because they comprise both heavily

and medium damaged areas.

Land availability and tenure is central to economic

and social revival. Land issues were a challenge to the

government during the conflict years and were further

complicated in Aceh and Nias after the disaster. From a

total of 300,000 land parcels 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

Meeting Vital Needs

Spatial Planning Progress

The progress of spatial planning of sub-districts and

villages has been slow in the last two years but momentum

is finally picking up. Approximately 20 sub-districts have

been covered to date and village planning activities are

underway in more than 402 areas to date. Some of the

major partners of BRR in the planning exercise include

ADB, MDF, GTZ, AIPRD-Logica, UN Habitat and PT

Wastuwidyawan. The planning outputs at sub-district

level have helped identify budgetary requirements across

the major sectors of infrastructure and livelihood. This

is greatly assisting the BRR and other stakeholders to

identify priority project implementation areas. The village

plans which have been produced for almost 300 villages

to date provide much needed information regarding the

location of future house plots and detailed engineering

designs to restore infrastructure.

Land titling and acquisition are still proving to be

challenging still. Major road projects have been slow

to start in the last two years due to time needed for

land negotiation and acquisition with communities. The

housing sector continues to be plagued with fraudulent

land claims by organised groups, at times at the expense

of vulnerable groups such as widows and orphans. In

the livelihoods sector progress has been significant

where more than 50,000 hectares of agricultural land

has been restored from a total of 74,000 hectares

damaged after the disaster. Most international agencies

have paid particular attention to ascertaining land tenure

prior to housing reconstruction, although a few NGOs

overlooked this due to the urgency of reconstruction

needs. It is now clear with passing time that beneficiaries

will need to be offered security with land titles prior to

the allocation of a house. The RALAS project has been

slower than expected, with BPN suffering from lack of

capacity to deal with the surge in workload and with only

17,390 titles issued. Greater intervention is required by

the provincial government and the BRR to accelerate

the adjudication process.

Joint Land Titling

BRR and the national Lands Agency (BPN) in 2006 initiated a precedent-setting strategy to ensure women and

men equal rights in land ownership by issuing a policy on “Joint-land titling”, with respect to ownership of the

land parcels that will be purchased and distributed to the community by BRR. This policy aims to introduce

joint-titling as an important facility for dealing with land ownership issues in post-disaster situations, and BRR

will work closely with the BPN and Local Government to ensure that beneficiaries of its land parcels are eligible

for joint titling.

Land ownership provides direct economic benefits as it is a source of income either from rental or sale; and as

collateral for credit that can be used for investment and enterprise purposes. Women may not fully participate

in these benefits, however, if they do not share formal rights over the land; only independent or joint-titling can

ensure that women, men and children have equal access and control over land-based earnings.

While joint titling is not prohibited by Indonesian law, or syariah and adat law, it is not commonly used in Indonesia

and consequently there are no administrative mechanisms in place for its implementation. In this regard specific

interventions are required to support full implementation and understanding of these rights.

BRR has been working in cooperation with BPN to ensure that the land it purchases and donates to the

communities left homeless and without land can be registered with BPN using a joint certificate where both

spouses officially can be signatories on the land certificate. BPN, BRR and agencies involved in land acquisition

and relocation have been reviewing the administrative requirements to ensure that their staff can provide the

necessary support for those requiring joint certificates. The initial phase of implementation of “joint land titling”

policy included the development of outreach strategy, information package, training of land registration officers,

identification of beneficiaries and community awareness raising with specific target audience. This first target

group includes those whose houses are already being built on BRR purchased land.

“I can think of nothing that will generate more income over the long run for average families in this region

than actually having title to the land they own. Then, they will be able to borrow money and build a much more

diversified, much more modern economy.”

Bill Clinton, UN Special Envoy for Tsunami Recovery, May 23, 2005, Banda Aceh

Source: BRR Spatial Planning Division

Aceh and nias t wo years after the tsunami



Social Services

2004 Damage 2005 & 2006 progress

• More than 2,000 school buildings damaged

• Approximately 2,500 teachers died

• More than eight hospitals

damaged or destroyed

• 114 health centres and subcentres

damaged or destroyed

• 623 permanent schools in Aceh and 124 in Nias built/

repaired, supplemented by 379 temporary schools

• More than 5,100 teachers trained in Aceh

and 285 teachers trained in Nias

• 305 health facilities in total built/rehabilitated in Aceh and 19 in Nias

– including satellite health posts, health centres and sub-centres

damaged in the disasters and 3 hospitals in Aceh and 1 in Nias



The tsunami disaster took the lives of well over 5,000

local government staff. The combination of the disaster

and the lengthy conflict meant the remaining civil service

in general was far below capacity needed to deal with

reconstruction activities. The creation of the BRR was

in part a response to this, and the primary goal of the

Institutional Development department of the BRR is to

re-establish an institutional capacity for the administration

and sustainable development of Aceh and Nias.

Institutional development is intended to enhance the

capacity of a broad range of government apparatus

including district and provincial government agencies

and the police. This is done through the provision

of physical buildings, equipment, support from an

independent consulting firm to assist in the transfer of

technical and management skills and support for general

institutional development and the provision of training

and educational programmes.

Despite the extensive damage caused by the tsunami and

earthquakes, the redevelopment of a local government

infrastructure in Aceh and Nias has progressed

significantly. The major gaps within the physical structures

have been filled and it is anticipated that in 2007 more

attention will be given to improving these structures and

their facilities.

Significant progress has also been made in filling civil

servant positions. Support has been provided by BRR to

assist in the recruitment of civil servants. This has been

achieved through developing procedures for civil servant

registration and where necessary providing workshops

and training courses to ensure competency standards

are met.

A range of programmes have been underway throughout

2006 to train local government employees, including the

EU/GTZ Aceh Local Governance Action Programme,

USAID Local Government Support Programme and

other training through YIPD, and training for sub-district

and village heads supported by JICA, AusAid, GTZ and

the Government of France. The training ranges from

technical, such as GIS, action planning, budgeting and core

competencies; through to leadership and governance

training. To date civil servants have received 4,158 person

days of training, from provincial to sub-district level, plus

200 village heads have received training. The provincial

government is reviewing its HR requirements, with the

support of BRR, with a view to longer term training and

staff development

Joint Planning and Coordination at

Provincial Level

Through the support of the Governor of Aceh and

through the combined efforts of BRR and Bappeda, a Joint

Planning Team has been established in the fourth quarter

of 2006. The formation of this unit under “one roof” is

to enhance cooperation and assist in the designation

of roles and responsibilities to encourage cooperation

and a coordinated approach in the development of

institutional development strategies and programmes.

More recently, implementation of the regionalisation

strategy has involved the establishment of joint

secretariats in several districts as a tool for both

improved delivery of reconstruction and to enhance

institutional capacity of local government. In addition to

supporting communication flows, the joint secretariats

are a vehicle for a number of programmes to be jointly

funded by BRR and local government.

One of these programmes, referred to as the “KPK

tour”, involved a series of workshops and education

programmes across 23 districts in Aceh and Nias. The

programme was led by the Corruption Eradication

Commission (KPK) and accompanied by the Indonesian

Procurement Watch (IPW) authority, Pemda and BRR.

The programme was funded by both Pemda and BRR

and ran for a period of three months, between August

and November 2006.


2006 Progress Report

Providing Social Services

This type of programme, apart from delivering

important training and the transfer of knowledge to

local government, has also provided the opportunity for

different government agencies to work together in a

unique partnership.


Working in partnership with local government to

define potential capacity development needs and

priorities, and engaging with local people to develop a

genuine understanding of their needs and aspirations,

is extremely challenging and requires significant efforts,

and patience to communicate openly and build trust.

Aceh and Nias have experienced many years of isolation.

The prolonged armed conflict in Aceh has resulted in

at least one generation having very little exposure to

the opportunities gained from broader contact with the

outside world. The extensive activity and resources in

the reconstruction programme and the peace agreement

has created a chance to address that isolation and provide

the people with better and stronger government, that is

more effective and accountable to its constituents.



In “building back better”, the recovery programme

seeks to create a safer and better environment in which

children can grow and develop. The earthquakes and the

tsunami at the end of 2004 had a devastating impact on

children and their families. More than 3,000 children

were separated from their primary caregivers and

an unknown number of children were left with single

parents. Immediate challenges included dealing with the

trauma of tsunami victims and the increased vulnerability

of thousands of separated children and children in single

parent households, who could be vulnerable to abuse,

neglect and exploitation.

Tracing and Reunification

Save the Children, in conjunction with the Provincial

Department of Social Welfare, led an inter agency group

on the formation of a common database and have so

far registered nearly 3,000 children. More than 1,300

children have been reunified with parents or relatives. The

database has now been handed over to the Department

of Social Welfare with secondments of staff from Save

the Children.

In order to ensure proper follow-up of the reunified

children, a targeted cash assistance scheme was

implemented to support a core of fostering families,

including 1,300 caregivers and 1,700 separated and

unaccompanied children. A livelihood support project

is now being developed in collaboration with the ‘Child

Fund Acehand this will benefit up to 1,000 children

along with their respective caregivers.

Children’s Centres

More than 19,000 children benefit regularly from

services provided at 21 Children’s Centres that provide

registration, tracing and reunification of separated

children, psycho-social support activities for adolescents

and younger children, legal protection from abuse and

exploitation, and child participation activities including

children’s committees. 526 child centre staff, 648 teachers,

135 school counsellors, 100 kindergarten teachers, and

325 school principals have been trained in basic trauma

counselling skills.

Safe Play Areas have been established across the

province by a number of international agencies and

provide important places for children in both villages

and temporary living centres to play, study and interact

with their peers.

The establishment of a child protection secretariat at

the provincial level and the signing of a cooperation

framework with the Provincial Office for Social Welfare

(Dinas Sosial) have been two critical measures to ensure

institutional ownership and long term sustainability of

this area of work. Even though the emergency phase

is over, child centres remain indispensable in providing

services such as psychosocial support, legal help, and the

follow-up to family reunifications.

Aceh and nias t wo years after the tsunami


The Social Welfare Departments at provincial, district

and sub-district level are being supported by UNICEF

and Save the Children in establishing a protective policy

and legal environment for children, including integrating

children’s centres with broader community services.

Children’s Homes

A new report, produced jointly by Save the Children and

the Indonesian Department of Social Welfare, shows that

one of the longer lasting impacts of the December 2004

disaster is likely to be the institutionalization of thousands

of children. The research which covered all of the Panti

Asuhan Sosial (or Children’s Homes) in the Province of

Aceh identified over 2,500 children who entered the

Homes as a direct result of the disaster. At the same

time, the research showed that contrary to public and

media statements about ‘tens of thousands’ of children

who had been orphaned as a result of the Tsunami, only

10% of the children who entered the institutions as a

result of that disaster had lost both parents while over

85% had one or even both parents alive.

Justice for Children

UNICEF has trained 195 police women and deployed

them in children’s centres to monitor the situation

of children and adolescents and to prevent abuse and

exploitation. Police officers, judges, prosecutors and

probation officers have been trained to take a more childfriendly

approach in juvenile justice and 75 children’s

centre staff were also trained in legal protection. The

emphasis has been on more family and community-based

approaches to justice.

Child-friendly desks’ which consist of a waiting room,

doctor’s clinic for victims of violence, interview room and

an administrative office are being set up in 12 Acehnese

police stations to handle cases of violence against

children and also cases of child abuse, exploitation and

trafficking, either with the child being the victim or the

perpetrator. The police officers assigned to the children

desks have been trained by UNICEF. A special court

room for children in Banda Aceh District Court has also

been established where juvenile trials are already taking



The role of education is critical to the transition from

emergency to recovery. Education is a fundamental

right of all children in all situations. Through education,

children develop and acquire the skills, knowledge and

competencies to better cope with the prevailing difficult

circumstances and to contribute to the recovery and

the development of their families and communities.

The general perception amongst communities, government

and partners about the importance of educationcreated

a favourable environment for the education sector during

the recovery process. Communities were cooperative,

and they often prioritised children’s education over

other needs. As a result, a vast majority of children had

returned to school in Aceh and Nias in 2005.

School Reconstruction

Almost 750 schools have been reconstructed. Almost

400 temporary schools built by different actors during

the first year continued to benefit children during 2006

by providing adequate space for teaching-learning while

waiting for the permanent schools to be completed.

Improving Quality of Education

The Provincial Department of Education prioritised an

in-service teacher training programme to improve the

quality of teaching and learning for all children in all

schools. The mechanism for in-service teacher training

is the school cluster system for primary schools in 21

districts of Aceh and 2 districts of Nias. A successful

Indonesian model of the Creating Learning Communities

for Children (CLCC) programme which involves teachers,

principals, supervisors, school committees and local

communities in the quality improvement of education,

was selected as a strategy for the in-service teacher

training programme. Introductory orientation and

advocacy workshops targeted key education managers

of Aceh and Nias.

During 2006, coordination meetings and discussion

were held among donors/NGOs, Department of

Education, and a coordinating committee included Syiah

Kuala University. The committee requested all donors

and actors to implement activities within the CLCC

framework. As a result, at least 12 donor and NGO

agencies (UNICEF, Save the Children, CARDI, AIPRD,

Child Fund, among others) have committed to support

the implementation of the CLCC programme for

improving the quality of teaching and learning in primary



2006 Progress Report

Providing Social Services

Five sessions of Training of Trainers (TOT) for CLCC

were conducted with 290 trainers, followed by the 102

sessions of Trainings for Teachers at school cluster level,

reaching 3,366 teachers in 10 districts of Aceh and 2

districts in Nias.

Early Childhood Development

The Aceh Provincial Education Department with the

support of donors are working to encourage remote

communities to create affordable community-based

Early Childhood Development (ECD) centres and early

learning activities for young children of 0-6 years old,

building upon “play groups” which existed prior to the


Currently, stakeholders at provincial, district and

community levels are advocating ECD in order to raise the

awareness and skills of caregivers (mothers, fathers, and

other caregivers) to improve practices on early learning

in the communities. These initiatives, combined with the

training of community teams, will increase the number

of children, especially from disadvantaged communities,

attending the ECD centres and will eventually improve

the learning achievement of children.

Aceh Five-Year Education Strategic Plan


The future direction of education in Aceh has been

defined during 2006 through the development of the

Aceh Five-Year Education Strategic Plan (2007 – 2011).

The Governor of Aceh, in consultation with the director

of BRR, requested the Provincial Education Council to

develop a strategic plan for the sustainable development

of education in the province.

The Steering Committee and the Secretariat were

established to provide the leadership and technical

guidance and to facilitate the planning process. The fiveyear

Strategic Plan has eight sub-sectors:

Disaster preparedness and response is considered

important in the natural disasters prone province of Aceh,

and is integrated as a cross-cutting issue for all levels

of education. Technical task forces for each sub-sector

have been established under the joint leadership of local

government and donors. Community participation and

consultations will continue in early 2007 to ensure the

plan is locally relevant, practical and feasible. Efforts are

underway to have the Five-Year Strategic Plan approved

by the Government of Indonesia during the first quarter

of 2007.


One of the key challenges faced to date concerns ensuring

adequate planning and coordination. A lack of attention

to both these critical processes increases the risk of

duplication and over-lapping in school reconstruction

sites, with implementing agencies competing over sites

to reconstruct permanent schools. There have even

been reports of too many schools being reconstructed,

meaning some lie empty or serve only a tiny population

of children. A lack of effective coordination with

local government has also constrained progress in

reconstruction, as both implementing partners and local

government become frustrated by the lack of information

or communication.

Although BRR started to harmonise the minimum

standards in school reconstruction in August 2005, there

is concern that some schools have been completed or

are under-construction with inconsistent enforcement

of such standards, with implications for children’s

safety in case of future emergencies. It is important to

investigate where compliance with minimum standards

may have been unwisely sacrificed in order to speed up

reconstruction, taking remedial action where necessary.









early childhood education;

basic education;

senior secondary education;

technical and vocational education;

Islamic boarding schools (religious/traditional


non-formal education;

teacher training (pre-service and in-service

training); and

higher education.

Aceh and nias t wo years after the tsunami



Health is always a priority in the aftermath of disaster

and in emergency response. Immediate and short term

needs that must be addressed include malnutrition,

provision of latrines, clean water and sanitation systems

and immunisation against disease. In this regard, health

services provided in the emergency phase successfully

prevented a potentially catastrophic public health


During 2006, efforts continued to support the provision

of medical services through the physical reconstruction

and rehabilitation of health facilities and infrastructure

and providing preliminary training for health workers.

A total of 323 health facilities have been repaired or

reconstructed, including 3 hospitals. However, there is an

ongoing need to ensure adequate medical supplies and

skilled personnel are available to equip and staff these

health facilities. Capacity building needs good planning,

understanding and sustainable long-term funding. In

order to utilise existing resources optimally, efforts

need to be increased to ensure that medical equipment

is allocated to areas where the health infrastructure and

skilled workforce are available to use it.

Providing access to training and education for skilled

health workers has helped to develop capacities and

improve the overall provision of health services. BRR

has provided scholarships for 221 health workers

to attend advanced training, including 116 specialist

surgeons, paediatricians, gynaecologists, internists and

anaesthetists who will serve as permanent specialists in

all general hospitals throughout the Aceh Province.

Indonesia has a relatively good policy and regulatory

framework for dealing with the poor, and ensuring

health provision for the needy, however both doctors

and communities are more used to a ‘cash culture’ and

further awareness raising and training is needed on

entitlements and the government’s safety net policies.

More coherence is needed in the training to enable

the most effective process of calling on and providing



2006 Progress Report

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


• 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 t wo years after the tsunami



Disaster Risk

and The


2004 Damage 2005 & 2006 progress

• 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

Disaster Risk


Disaster risk reduction is a key component of the

recovery and reconstruction process to ensure that

communities are as prepared as possible to mitigate

againts future hazards. Decisions regarding the way

funds are spent can directly affect how the projects will

increase or decrease vulnerability. The international

Hyogo framework of 2005 sets out responsibilities of

key actors in integrating disaster risk reduction into

sustainable development policies and planning, and a

national Disaster Risk Reduction Workshop held early

2006 addressed a range of initiatives required, including

guidelines, policies and projects.

Particular concerns in the reconstruction programme

include building quality and locations, including close

to the coastline. Communities (with implementing

partners) have in some cases re-built close to the coast

on the basis that they did not have land elsewhere and

considered they had little alternative. However, and

appropriate disaster risk management process included in

the community-based mapping provides an opportunity

for improving escape routes and improved awareness.

BRR and UNDP are cooperating to issue a comprehensive

Disaster Risk Reduction framework, linking also with

provincial, local and national government entities. Issuing

such as policy and framework is a priority at the end

of 2006. UNDP are working with Bakosurtanal in

preparing disaster risk maps and indices in relation to

environmental risk management plans.

Substantial support in this sector has been provided

to BRR since March 2006 by the Government of the

Netherlands, through a 30 month USD 9 million

consultancy contract for Sea Defence Consultants.

The contract covers flood control, urban drainage, sea

defence and Tsunami Early Warning Systems (TEWS),

including community awareness programmes.

As part of this programme, escape routes and safe refuge

areas in the event of future disasters are being designed

and developed and BRR and respective consulting teams

will be commencing a pilot project in sub-district Lhoong

to identify suitable locations which will fulfil these

requirements. The BRR is the primary funding source

for capital works, and multi-year contracts have been

used to allow smoother implementation throughout the

year on year government budgeting cycles.

Sea Defence

The impact of the tsunami and earthquakes and the

appropriate sea defence mechanisms required have

been much debated in 2006. At the beginning of the

reconstruction in 2005 there were no overall planning

documents or feasibility studies offering a clear way

ahead. Nevertheless action had to be taken in order

to enable other reconstruction such as housing and

agriculture rehabilitation that were dependent on high

tide protection. Standard designs and experiences of

working elsewhere were applied in order to start works

quickly, modifying as best as possible for field conditions

and community needs. However, this relied a lot on local

knowledge in communities, but often technical expertise

was limited and those with indigenous knowledge

were simply not available, having been displaced by the


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

Managing Disaster Risk

and the Environment

be protected. Decisions have to balance economic,

political, engineering, and environmental factors.

Proper emphasis must be given to the operation and

maintenance of flood defence structures. Failure to

properly maintain and operate defences can have

catastrophic consequences, causing far worse flooding

when defences breach than would have occurred if no

defences had been built in the first place.

Maintenance of flood defences is an expensive and

indefinite commitment. The ability of government

and communities to fund such maintenance must be

confirmed before construction starts. If construction

quality is poor, or if maintenance is neglected even if

in just one or two locations then an entire city can be

flooded as happened in New Orleans in 2005.

2006 has seen debate on the best way forward. Lessons

have been learned and procedures were followed

at a more considered pace, but there is no single

straightforward answer for coastal protection. More

data and expertise has certainly assisted in 2006, but

experts continue to have different views about how the

coastline will settle. Coastlines are still changing, the sea

currents are being modelled, but debris still blocks some

waterways while other areas are being washed away. A

minimum of one year is required to observe the tidal

patterns, but of course several years allow the change to

be more fully understood.

Aside from the technical complexities associated with this

sector, land issues are a constraint. The policy of BRR is to

purchase only the land being used for coastal protection

works – not to compensate for land now submerged

or to purchase the remainder of a plot if not required.

However, people continue to expect compensation for

portions of land on their plots that is now submerged,

and to demand that entire plots be purchased rather

than only portions required for works.

Drainage and Flood Management

In the reconstruction programme there is not enough

attention being paid to flood management. There are

two main aspects to flood management – flood control

and urban drainage. Urban drainage is largely dependent

on flood control so the two are combined and tackled

together with sea defence.

The debates on appropriate sea defence strategies

extend into flood management, with some proposing

that flooding problems are exacerbated or caused by the

sea walls. Pumping stations and similar solutions can be

adopted. With the present capacity in local government

though it is unlikely that sophisticated systems would

be maintained and capacity building in operations and

maintenance would be required.

Since the emergency phase there has been more

concentration on buildings and above ground structure,

with too little design and planning of sub-structure and

civil engineering works. In housing coordination and

community-based planning there is not enough guidance

on spatial planning and drainage needs.

There is little awareness of sustainable drainage systems

in Aceh. Swales, retention ponds, wetlands, infiltration

trenches and rainwater harvesting all reduce flooding

problems, and are considerably cheaper than conventional

concrete drains. They are also easier for communities

to maintain and more resilient, being less likely to be

blocked by rubbish or damaged in earthquakes. An

awareness campaign should be started in 2007 to

introduce sustainable drainage systems.

Because drainage schemes rely on traditional hard

engineering (using concrete channels almost exclusively)

they are relatively expensive compared with house

construction. The drainage scheme for zone 2 of Banda

Aceh will cost USD 4.5 million to cover 110,000 people,

not including sea defence measures. The pattern is

emerging that the neglect of the sub-structure becomes

apparent only when people have moved into their houses

and realised there are drainage problems. At that point

expensive retrofitting is required to avoid public health


BRR have recognised this is an issue and is calling on

NGOs to report immediately where they have not

Aceh and nias t wo years after the tsunami


provided or cannot fund the necessary infrastructure

base for housing, so BRR can apply remaining 2006 funds

immediately wherever possible for remediation. With

current neglect of the sector, continuing into 2007 there

could be increasing gap between demand and budget.

Not including retrofitting needs, Banda Aceh and

Meulaboh drainage designs need to be finished in order

to implement urban drainage and flood control by 2009.

Works for three zones in Banda Aceh remain unfunded.

Meulaboh needs funds for capital works, there is

insufficient funding for flood control in the urban areas

and the infrastructure required for main river flood

protection is still unfunded. A target for BRR is to

fund this by 2009. Lhokseumawe also needs design and

implementation of a drainage and flood control scheme

Singkil is an areas experiencing particular problems since

the land has settled more than 1 metre making the cost

of intervention there very high.

Community practices exacerbate flooding problems

throughout. From years before the tsunami it has

been common for people to dump garbage into the

drains and for households and government to neglect

the maintenance of flood drains. Extensive awareness

programmes are essential if investments in physical

infrastructure are to provide effective flood management

and avoid public health problems.




Environmental assessments and examinations need to be

undertaken in all areas prior to any form of reconstruction.

Although environmental problems did exist prior to

December 2004, major environmental issues need to be

addressed during the ongoing reconstruction process

and should be given high priority in the work plans of

stakeholders involved in reconstruction. Examples of

some major issues of concern include:

• Contaminated drinking water and inadequate

sanitation systems in re-established housing areas,

especially problematic in areas with high water


• The large volumes of timber required for housing

construction and for firing bricks, and the associated

impacts on forest resources in Aceh, North Sumatera

and Kalimantan from unsustainable or illegal logging;

and impacts associated with extraction of sand and

gravel for building and road construction.

• About 1,000 hectares of agricultural land are

covered by a thick sediment layer and other

areas remain saline due to insufficient drainage so


2006 Progress Report

Managing Disaster Risk

and the Environment

requiring improved land drainage. As the restoration

of these areas can be very expensive, alternative

land use practices should be considered such as

animal husbandry. In addition, 27,500 hectares of

aquaculture ponds were affected and should be

restored to environmentally sustainable production

where economically and technically feasible while

at the same time repairing and maintaining the

integrity of the coastal greenbelt.

• The need to rehabilitate and protect coastal

ecosystems that have been damaged by the tsunami

and/or unsustainable resource practices.

• Large quantities of tsunami and household waste

still needs to be cleaned up, as it clogs up drainage

systems and represents a major source of infections.

At the same time waste collection and disposal

facilities are very deficient, and hazardous waste

management is almost non-existent. It is highly

recommended to further improve waste collection

and treatment, with special emphasis on hazardous

waste, and to create safe waste disposal facilities.

• Capacity in environmental management, impact

assessment and spatial planning needs to be

enhanced. The environmental impact assessment

system faces a bottleneck of projects requiring

approval and requires further streamlining and

technical support. Monitoring of the environmental

impacts of the reconstruction process and trends

in environmental quality is limited.

Strategic Environmental Framework

The Strategic Environmental Framework (SEF) for

a More Environmentally Sound Reconstruction of

Aceh Province is a set of policies, structures and

operational guidelines ensuring that environment is

properly considered in Aceh’s complete reconstruction

programme and project cycle – from policy

development to planning, implementation, monitoring,

and compliance promotion.

The objectives include supporting environmentally and

socially sound investments; ensuring that environmental

and social aspects, including cumulative impacts, are

considered at an early stage in the reconstruction

planning process; and preventing inadequate

implementation of environmentally sound plans and

projects. The SEF is designed to assist decision-making

in the project cycle’s early stages and to provide a

practical tool for mitigating project impacts. The

framework proposes a series of interventions, that can

be used independently or as a whole.

Coastal Environments

The earthquake and tsunami disasters caused serious

damage to coastal environments, including coastal forests,

corals and other wetlands. The restoration of the natural

productivity and values of these coastal habitats through

direct interventions or allowing natural processes

of recovery, combined with improved management

of coastal resources, will contribute substantially to

the sustainable recovery and development of coastal

fisheries in Aceh and Nias.

Mangrove planting has made substantial progress during

2006, but substantial work still remains to be done.

Investments in coastal ecosystem rehabilitation have

been marred by poor planning and implementation.

Proper assessments, including appropriate site selection

combined with support to better coastal resource

management will be necessary for the sustainable

recovery of coastal resources in Aceh and Nias. ADB

is contributing to this initiative by supporting coastal

planning through the ETESP Spatial Planning and

Environmental Management (SPEM) component, and

building mangrove rehabilitation programmes into its

investments in the rehabilitation of the fisheries sector.

Fisheries could be one of the backbones of Aceh’s

economy, with its potential backward and forward

linkages, but so far most fishermen use very traditional

techniques and small boats, which prevents them from

accessing richer fishing areas far offshore. In addition, the

fisheries sector was badly affected by the tsunami, with

over 80% of fishermen affected by the tsunami, which

highlights the urgent need to assist this community.

Forestry areas in Aceh are estimated to extend up to

4.13 million hectares or 75 % of the total size of the

territory, with tropical rain forests that contain of a

great variety of wood and wildlife. There are currently

about 20 companies that have been granted licenses to

develop about 1.58 hectares of forest to be production

forest. The reconstruction’s demand for wood amounts

to 740,000 cubic metres RWE (round wood equivalent),

while the supply available on the market is 100,000

cubic metres, thus there is an demand of about 640,000

cubic metres. This increasing demand for wood already

resulted in some illegal exploitation of forests. The use

of salvage woods and alternative construction materials

could somewhat ease this situation.

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

Aceh and nias t wo years after the tsunami


Solid Waste Management

The Tsunami Recovery Waste Management Programme

(TRWMP) aims to build capacity in government, create

temporary employment and longer-term livelihoods in

waste management whilst benefiting the environment

through collection, recovery, and recycling of waste

materials. This project was started by UNDP early 2005,

with USD 15 million provided by the MDF in September

2005, executed in partnerships with BRR and local

Government Sanitation Departments (Dinas Kebersihan).

The funding is expected to be fully spent by end

December 2006, but an extension is being proposed.

The project collects tsunami and other waste, plus

has rehabilitated existing or has provided temporary/

emergency dumpsites. Through waste recycling projects

it has provided interim livelihood opportunities.

The TRWMP was also conceived to address the

environmental impact of the tsunami and earthquake

disasters; in particular the waste generated by the disaster

and the need for appropriate handing and clean up of

this waste and rubble. Much of the waste recovered is

recyclable for use in rehabilitation and reconstruction.

Reuse of recycled timber, concrete and bricks has

directly reduced the need to fell trees for virgin timber

and quarry rock for use in concrete, drainage, roads and


During the last year the TRWMP expanded to eight of

the most impacted districts in Aceh & Nias. Much of the

tsunami waste in the most affected municipal areas has

been cleared. Attention has increasingly become focussed

on restoring and improving municipal waste disposal The

emphasis here is on the provision of support that will

enable sustainable systems to be developed and that will

provide workable and sustainable waste collection and

processing. Significant work is still required to achieve

these aims both within the current 8 districts and in

others not yet reached by the programme.

There is a longer-term need for sustainable properly

sited sanitary landfill facilities in Aceh and Nias. Studies

indicate a disposal facility can be provided for Kota Banda

Aceh/ Aceh Besar that utilizes the Clean Development

Mechanism (CDM) to operate on a self funding basis.

The Tsunami Recovery Waste

Management Programme Progress

Key Performance Indicators





Tsunami waste cleared (m3) 1,060,137

Municipal waste collected / disposed (m3) 88,308

Sawah / tambak /land rehabilitated (ha) 670

Tsunami / earthquake damaged buildings

demolished (no.)


Drains cleared (average km per day) 3,8

Roads swept (average km per day) 11,6

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

Male workers (%) 69%

Female workers (%) 32%

Internally Displaced Persons (IDPs) amongst

workers (%)

Beneficiaries employed in livelihood

projects (average no. per day)

Heavy equipment leased (average no. per





Dump sites upgraded / rehabilitated (no.) 11

Waste cells (ha) 16,5

Daily cover for waste area (ha) 39

Roads rehabilitated / reclaimed with rubble



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

Recovered wood processed into condition

suitable for recycling (m3)


Timber provided to NGOs for

reconstruction efforts (m3)


Furniture units (e.g. table, cupboard, etc)

completed (no.)



2006 Progress Report

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:



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


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


E. score ≤ 2: very low sensitivity, implying no

environmental issues with infrastructure


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 t wo years after the tsunami




2004 Damage 2005 & 2006 progress

• 3,000 km of roads impassable

• 14 of 19 seaports badly damaged

• 8 of 10 airports damaged

• 120 arterial bridges destroyed,

1,500 minor bridges

• 1,200 km of all type of roads in Aceh and 300

km in Nias have been built/repaired.

• 121 bridges in Aceh and 37 in Nias have been repaired

• All ports operational; 11 ferry terminals and harbours in

Aceh and 3 in Nias are built/under development

• All airports operational; 5 airports and 1airstrip in

Aceh and 2 in Nias built/under development.



Lack of significant infrastructure two years after the

disaster is hampering the reconstruction process.

Primary infrastructure including major roads and proper

seaports are still inadequate and linkage with secondary

networks to reach the more remote areas is imperative

Years of conflict left the infrastructure neglected and the

tsunami exacerbated further the problem. Restoration

of national and district roads, access to potable water

and electricity networks will help alleviate poverty issues

and promote economic development

Infrastructure Reconstruction

Enabling Programme

The Infrastructure Reconstruction Enabling Project

(IREP) provides technical assistance at two levels. An

Infrastructure Programme Management Team, under

the supervision of the BRR, will assist in strategic

planning and coordination of all infrastructure

activities. Concurrently, district-based technical

teams develop detailed infrastructure designs and

provide implementation support. The program is a

USD 42 million technical assistance funded by the

Multi-Donor Trust Fund.

Infrastructure Reconstruction

Financing Facility

The Infrastructure Reconstruction Financing Facility

(IRFF), established in September 2006, provides

funds for key infrastructure reconstruction projects

identified through the Infrastructure Reconstruction

Enabling Programme. It combines USD 100 million

of Multi Donor Fund resources and USD 200 million

Government of Indonesia funds managed by BRR for

infrastructure projects throughout Aceh and Nias.


Transportation networks continue to be a top priority for

the reconstruction programme now and for the coming

years. Over 1,500 kms of roads have been repaired in

both Aceh and Nias but in some areas upgrading is still

required. Gaps in maritime transportation have been

filled by the WFP Shipping Service for 2006, but a longer

term solution is required.

Roads and Bridges

The poor condition of roads and bridges is causing serious

delays in the reconstruction process and further isolating

the existing remote areas. To date, local governments

in Aceh and Nias still have insufficient technical and

financial capacities to restore the road system. In 2005

the maintenance of emergency roads exceeded the

capacity of local and provincial government and the

implementation of programmes through BRR had been

lagging, resulting in implementing agencies, often lacking

technical expertise themselves, attempting to fulfil the

essential road works required.

This year, 2006, has seen greater coordination and

capacity building between both the BRR and local

governments. However, more extensive rebuilding and

investment is needed throughout, including non-tsunami

affected areas, to achieve an improved network. Many

bridges are still unable to accommodate more than 10

tonnes loads.

The USAID-funded new road from Banda Aceh to

Meulaboh has started, following design and land

acquisition. The rehabilitation of the 122km Calang-

Meulaboh section is funded by the Government of Japan

and will be complete at the end of 2006, while the MDF

has funded the rehabilitation underway on the Banda

Aceh-Calang section. The ADB is funding rehabilitation

of the 490km east coast road from Banda Aceh to the

North Sumatra border and work is expected to start

early 2007.


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

Establishing infrastruc ture

great amounts of reconstruction materials. An estimated

30 million tonnes of material is to be brought in over

the next 3 to 4 years.

Rehabilitation of seaports and ferry terminals has made

good progress in the two year period. Of those damaged

or destroyed, all are now operational, but some with

temporary facilities. For temporary capacity foreshore

ramps for the use of landing craft were constructed at

Calang, Meulaboh, Malayahati and Sinabang. A temporary

wharf is also being constructed on Pulau Aceh (island)

In Aceh Besar. Ulee Lheu (Banda Aceh) and Balohan

(Pulau Weh island) ferry terminals were refurbished.

New construction has been completed in Malahayati

port in Aceh Besar with 10,000DWT (dead weight

tonnage), funded by a grant from the Government of

the Netherlands and at Meulaboh jetty, funded by the

Government of Singapore through the Singapore Red


The current programme includes improvements

underway at Sosog port, and completed designs for a

new port at Lamno. A new ferry terminal is planned

for Meulaboh, including a land reclamation scheme,

with design due to be complete by end of December

2006. Calang, Sinabang, Gunung Sitoli ports are critical

for bringing in construction and relief materials and

temporary rehabilitation work has been completed with

permanent work expected to commence early 2007

Airports and Airstrips

The Government of Indonesia through BRR is the

major financer of airport and airstrip reconstruction.

The new Calang airstrip was funded by the Mission

Aviation Fellowship (MAF) and was completed in 2005.

All existing airports and airstrips in Aceh and Nias were

made operational since the disasters, although further

improvements are ongoing. . Three new airstrips are

Aceh and nias t wo years after the tsunami


eing designed for Sibigo (Simeulue), Teluk Dalam (Nias)

and Blang Pidie (Aceh), with construction due in 2007.

Improvement works are also planned at Sultan Iskandar

Muda in Banda Aceh in 2007 which served as the first

port of call for all emergency and relief flights right after

the tsunami.

Water Supply

In 2006, a number of significant water supply projects

were initiated, repairing and rehabilitation water

treatment works and pipelines damaged by the tsunami.

The first priority has been to provide appropriate water

supply to reduce the need for water tankers and similar

emergency water interventions. The second priority is to

support the reconstruction of housing, and third priority

is to provide water to key strategic areas such as ports

and industrial areas, to support economic development.

A large number of agencies support the water supply

sector; the IFRC, ICRC and Red Cross/Red Crescent

Societies, UNICEF, Islamic Relief, CARE, World Vision,

Oxfam, USAID, CRS, THW, SAB-SAS among others.

The main Banda Aceh water sources at Gle Tarom,

Mata Ie, Jantho and Meulaboh have been rehabilitated

by PDAM, with support from UNICEF, THW and other

partners. The Government of Kuwait (through Kuwait

Red Crescent) constructed a seawater desalination

plant at Ulee Lheu, Banda Aceh. The Government of

Switzerland (through SDC) are rehabilitating Banda

Aceh’s water treatment plant in Lambaro, with capacity

485litres/sec, while the Government of Japan (through

JICS) are rehabilitating the water supply pipelines in

Banda Aceh and Gunung Sitoli, replacing destroyed pipe

networks and rehabilitating and expanding the capacity

of pipes elsewhere. The programme has suffered some

delays due to land acquisition. UNICEF and partners have

constructed a network of water supply pipelines around

Aceh Besar, serving communities on the west coast as

far south as Lampu’uk and as far east as Darussalam.In

water supply projects, as with other construction works

in the overall reconstruction programme, concerns have

been raised about the quality of the reconstruction

work, as inexperienced contractors have worked with

minimal supervision from consultants.

Water supply schemes have been proposed and

implemented with insufficient consideration as to the

availability of suitable water resources long term. It

is fortunate that Aceh is relatively well endowed with

water resources, nevertheless problems may arise due

to the competing needs of irrigation, industry, drinking

water supply, and the environment. The problems are

most acute along the North and East Coast of Aceh,

which has the high population densities, more industry

and relatively small water catchments.

It is recognised that most of Aceh’s and Nias’s local

water supply companies (PDAMs) lack both technical

capacity and financial resources. They have received

considerable support from ESP/USAID and GTZ/

SLGSR’s capacity building programmes. The World Bank

has commissioned studies into the institutional reform

of the water companies. The issue remains problematic

due to political difficulties involved in raising water tariffs

to a level where they actually sustain the water supply

infrastructure and pay staff salaries.


Sanitation is challenging because of high ground water

levels, low level sites, earthquakes and poor awareness

of good practice. Sanitation standards in pre-tsunami

Aceh and Nias were poor in general. A working group

was formed in 2006 comprising NGOs in Housing and

Watsan services. They have developed and published

a set of sanitation guidelines for Aceh-Nias. These

guidelines, published in November 2006, are a practical

document setting out minimum standards for sanitation

in context.

It is recognised that during the emergency phase,

many NGOs provided rudimentary sanitation (or even

no sanitation at all ) for the houses they constructed.

While this was an understandable initial response to

the disaster, the challenge now is to provide sustainable

sanitation for the permanent housing programmes, and

safeguard indefinitely the health of families.

The sewage treatment plant in Banda Aceh was

rehabilitated with the support of the Government of

Japan (through JICA). During 2007 many organisations

will be upgrading cess pits and sub-standard septic

tanks and providing secondary treatment to meet the

new guidelines. This will prevent wastewater entering

drains, protect water sources and the environment and

substantially reduce water borne diseases (the primary

cause of infant mortality).

The working group recognises that septic tanks

provision must be accompanied by an effective public

health campaign if people are to maintain their tanks and

de-sludge them when they fill up in 2 – 5 years’ time.


2006 Progress Report

Establishing infrastruc ture


The major programme in irrigation is ADB’s USD 30

million ETESP programme that includes rehabilitation of

about 72,000 hectares of irrigation systems with about

64,100 hectares in Aceh and 7,900 hectares in Nias.

The work programme includes the rehabilitation of 21

irrigation systems that were severely impacted by the

tsunami over an area of about 10,000 hectares.

The process includes participatory planning, design

and construction with farmers and Water User

Associations; there have been 230 meetings so far.

Funding for construction is through the Government,

and implementation is through the BRR’s Satker and

the district based PPKs, with contracting of work either

through Community based SP3 contracts or through

Local Competitive Bidding (LCB)/ Kerja Sama Operasi

(KSO) with implementation by Contractors with Water

User Associations (WUA) and farmer participation.

To date, 21 LCB/KSO contracts in Aceh and 5 LCB/KSO

contracts in Nias have been awarded and construction

is underway, total value USD 4 million. The Satker

and PPK expect to award 75 contracts by the end of

December 2006 (approx USD 0.8 million). 57 LCB

contracts, estimated at USD 15 million are due to be

tendered in 2007, along with 120 community-based SP3

contracts. District Working Groups have been formed

to coordinate work at the district level and consist

of district representatives from Bappeda, Agriculture,

DWRS, and Bappedalda. They have operational budgets

and have started coordination at district level.

economies of scale. The major power source is centered

in North Sumatera, while in Aceh, a number of potential

energy resources exist but are not yet developed. These

include geothermal sources (589 MWe), hydro sources

(1,482MWe), and coal (571 million tonnes).

Major rebuilding efforts in the power sector are

being undertaken by BRR in Aceh and Nias through

Government of Indonesia funding of IDR 446 billion

(USD 49 million) through three fiscal years (2005-2007).

ADB is contributing USD 9.5 million for equipment

which aims to improve the electricity distribution

system. in total twelve new diesel-powered generators

have been purchase and installed across Aceh and Nias

to ensure sufficient electricity service, generating an

additional 10.3 MWe of power capacity. Although the

major cities of Banda Aceh and Meulaboh are beginning

to enjoy uninterrupted power supply, restoration of

power supply to the more rural areas is not expected to

be in full swing until 2007.


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 t wo years after the tsunami




2004 Damage 2005 & 2006 progress

• USD1.2 billion damage to productive sector

• Projected economic decline of

5% in Aceh; 20% in Nias

• 100,000 small business persons

lost their livelihoods

• 4,717 coastal fishing boats lost

• More than 20,000 ha fish ponds

destroyed or out of action

• 69 % of the male labour force and 36 % of the female

labour force actively engaged in urban areas.

• 68 % of the male labour force and 45 % of the female labour

force are working in rural areas of both Aceh and Nias.

• 4,420 fishing vessels have been replaced

• 6,800 ha of fishponds rehabilitated

• More than 50,000 ha of agricultural land have been rehabilitated

• 60,000 farmers displaced

• Almost 74,000 ha agricultural land damaged

Aceh’s Economy

Aceh’s economy relies heavily on oil and gas production,

which accounted for 23% of GDP in 2005. Manufacturing,

largely dependent on inputs from cheap gas (e.g. the

fertilizer industry) accounts for a further 20% of GDP.

Aceh’s economy on average has seen lower growth rates

than the rest of Indonesia for the last 20 years, partly

caused by the conflict and its negative impact on the

7% Transportation

& Communication

12% Trade,

Hotels & Restaurants

3% Building

& Construction

13% Services

Aceh’s Economy 2005

20% Manufacturing

22% Agriculture

23% Mining

productive sector (agricultural production, manufacturing

and mining) and investment. The table shows growth

rates in Aceh from 2002 until 2005. Not surprisingly,

the economy shows a pronounced decrease in 2005

(down by 13%), although that was primarily caused by

the slowdown in the mining and quarrying sector and

the closely linked manufacturing sectors. Some services

sectors (particularly transport but also trade, hotel and

restaurants) show a strong increase, probably due to

the reconstruction effort. More worrying for poverty

considerations in Aceh, the agriculture sector also shows

a stark decrease after three years of growth.

These negative growth figures have translated into a

decrease in per capita GDP in Aceh, which has fallen

from IDR 9.5 million (approx USD 1,040) in 2004 to

approximately IDR 8.7 million (approx USD 950) in

2005, a decrease of 9%.

Since the tsunami, prices in the affected regions have

increased more sharply than the national average.

Year on year average inflation in Banda Aceh for 2006

(January to September) was 29.3%, compared to only

16% for Indonesia as an average. These inflation figures

are capturing the hike in prices due to the reduction

in petrol subsidies of October 2005. Monthly average

inflation figures for 2006 are lower, but still higher in

Aceh than the national average (6.5% vs. 4.0% nationally).

The increase in prices has been mostly driven by rising

transportation costs, which have translated in an

increase in prices of construction materials, food and

most other tradable goods. Wages have also increased

substantially - wages for unskilled construction workers

were on average 30% higher in 2006 than in 2004,

whilst wages for semi-skilled construction workers

were almost 65% higher. The reconstruction effort has

had positive backward and forward linkages for many

businesses in Aceh, as well as providing employment

for many Acehnese, but the increasing cost of living will

be reducing any benefits to the population from the

reconstruction effort or higher wages.

The tsunami has also resulted in a large trade imbalance

in the province. Whilst exports remained relatively

constant in 2005, the volume of imports jumped by

500%, as a result of the large reconstruction effort and

the disruption of most production in the affected areas

right after the tsunami. This trade imbalance is currently

being financed by international aid and large revenue

transfers from the Indonesian government. However,

this is not sustainable in the long term and Aceh will

have to produce its own tradables to be able to continue

Economic Growth Rates in Aceh (%)

2002 2003 2004 2005

Agriculture 2.13 3.27 6.04 -8.88

Mining &


66.79 9.86 -24.06 -33.57

Industries 5.45 1.68 -17.8 -20.53

Electricity &




Trade, hotel &


Transport &


Banking &


-3.16 16.98 19.53 -1.83

13.28 0.95 0.92 -23.96

2.18 2.46 -2.68 12.23

4.17 3.87 3.67 45.32

23.95 30.99 19.45 6.34

Services 5.95 6.31 20.14 -0.65

Total 20.07 5.52 -9.63 -13.45


2006 Progress Report

Improving livelihoods

importing at current or even substantially lower levels.

To this end, it is important that the provincial and local

governments develop a common vision about the

economic development of the region.

Private Sector


BRR, the regional government as well as many donors

share the vision of turning Aceh into a modern,

globalized and open economy. To that end, in parallel to

the Sustainable Economic Development Strategy being

developed, many activities are currently underway to

ensure assist local business and private sector to raise

up to the challenge and be a main contributor to the

reconstruction effort in Aceh and Nias as well as to

provide a better living for the people.

Exploring Investment Opportunities

Numerous investment opportunities exist in the region.

The potential sectors of interest include free trade

and free port zone Sabang, fishing and fishery industry,

tourism (particulary in Nias), hotel and restaurant

business, moulding industry, animal husbandry industry,

development of plantations and recreational forests, etc.

But a difficult business environment has hampered the

development of strong and competitive local enterprises

and the interest of foreign and domestic investors to

explore available opportunities in these sectors.

Nias suffers from its remoteness for markets, but

investment in its infrastructure offers economic

opportunity. The Law on the Governance of Aceh (LOGA),

passed in July 2006, provides Aceh with an opportunity

to improve the business enabling environment. The BRR,

together with the Aceh Investment Promotion Board

(BKPMD), as well as IFC and Foreign Investment Advisory

Service (FIAS), is working on promoting investment by

drafting a robust investment law that uses the flexibility

and opportunities entailed in the LOGA. Other initiatives

that will assist in strengthening the local private sector is

the Investor Outreach Office (IOO), which will provide

investment support services and a monthly event (The

Business Gathering) that facilitates networking as well as

information sharing and discussion among the business


Banking and Microfinance

By the end of year 2005, there were 16 conventional

banks in Aceh, with 207 offices and 20 BPR (Bank

Perkreditan Rakyat), with total assets IDR 16,6 trillion

(USD 1,8 billion) and IDR. 13,9 trillion (USD 1,5 billion)

in deposits.

The total growing assets were mostly influenced by

growing deposit (DPK) at 75%, whereas LDR had a

relatively slow growth, because of instability of the

real sector and increasing interest rates. Comparing to

credit composition in 2004, working capital credit grew

the most (23%) whilst consumption grew at 16%. Non

performing loans shows a limited increase after the

tsunami (from 2.8% to 3.1%).

58% of all credit in Aceh’s banking system went to small

and medium enterprises (USD 0,2 billion). Larger firms

with a national or even international presence are likely

to get credit from banking institutions outside Aceh. The

small and medium enterprises are the backbone of Aceh’s

economy. They are also major providers of employment,

so their growth and success, with strong backward and

forward linkages in the rest of the economy, is a key

component of Aceh’s economic development. With the

current reconstruction effort and its scale, there are

many opportunities for Acehnese businesses to provide

goods and services and at the same time expand and learn

new skills. But often, small and medium enterprises are

constrained by a lack of access to finance. Microfinance

and other instruments (venture capital, gap financing)

should be developed to ensure that small businesses

also have access to finance.

Banking Indicators

Indicators 2002 2003 2004 2005


(IDR trillion)



(IDR trillion)


(IDR trillion)

LDR – loan

to deposit

ratio (%)

7.608 9.880 10.784 16.588

6.083 7.656 7.952 13.887

1.578 2.123 3.201 3.634

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

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

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

Aceh and nias t wo years after the tsunami


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

Improving livelihoods

The BRR financial and investment capital institutions

sector is focusing on the development of SMEs through

assisting Micro-Financing Institutions (LKM). The

programme was initially in 2005 oriented towards the

emergency phase, with disaster victims as the target

beneficiaries. In 2006, the programme has broadened

beyond the tsunami and earthquake inflicted areas into

all districts and cities across Aceh. It has also increasingly

addressed the need of capacity building and building

networks, especially through the Aceh Micro-Finance

Center (ACMC).

ADB has a large project to assist Acehnese banks to

provide credit to those smaller businesses. ADB started

preparing the Livelihood & Microfinance Sub-Project

(LMS) in late 2005. The Microfinance component was

designed to deal with the formal financial sector and

registered microfinance institutions, collaborating with

the existing “people’s credit banks” (BPR) in Aceh, 20

in total, eight of which are private-owned. Several BPRs

were directly damaged and affected by the earthquake

and the tsunami, others indirectly affected. Consequently,

collaboration with the BPRs included rehabilitating and

assisting them to further normalise their operations, and

at the same time, providing the capabilities, skills and

technologies to enable the BPRs to provide accessible

financial services and products that are responsive to

the rehabilitation and reconstruction needs in NAD and

Nias. Some of the activities undertaken include :

advocacy and adoption of ‘best practices’, including

the group lending system drawn from Grameen

Bank model,

dissemination of latest technologies in


training for microfinance loan staff of BPR,

complementary re-financing registered and licensed

as a microfinance innovation fund (MIF). The BPRs

that participate in this project have already reached

more than a 1,000 women client savers/ borrowers,

and USD 65,000 in total microfinance loans

disbursed, as of end of October 2006. Repayment

is 100%.

Many small enterprises are agriculture-based, and

farmers also need access to credit facilities. Programmes

and instruments should be extended to ensure that this

group is not excluded, and particularly to help to address

rural poverty.

Business Environment

Often, a major challenge in developing local private

business activity is the lack of skills and capacity in business

basics. Several institutions are assisting businesses

directly to address these issues. An example of this is

a pilot programme implemented by the International

Finance Corporation (IFC). Approximately 500 people -

35% of them women- have participated since April 2006.

Aceh and nias t wo years after the tsunami


Training has consisted of core consulting skills, financial

management, and PC skills for businesses.

Many actors are also assisting the private sector to

come together in business associations and sectoral

associations, such as the NCBA Coffee Forum. Such

associations with similar interests and problems have a

stronger voice than individual businesses, at the same

time as offering economies of scale and coordination

opportunities for activities that individual businesses

may not undertake on their own. Assistance is being

provided to organise those business and sectoral

associations, although their sustainability would require

that members increasingly shoulder the costs.

Business associations can also be useful in advocating

for a friendlier business environment, that minimises

red tape and bureaucracy that impedes private sector

development. Assistance is being provided to a variety

of private sector actors (chamber of commerce,

sector associations) and the government to develop

‘best practice’ solutions, such as ‘One-Stop-Shops’ for

registration of new businesses and a streamlined and

transparent tax administration. As these associations

grow more vocal, other areas that may be constraining

private sector activity should be addressed, together

with the government and the assistance of donors.



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,

food crops and estate crops. Currently poverty in

rural areas is having a negative impact on health and

productivity. The agriculture sector has potential to

make enormous inroads into poverty reduction, but

this will not happen without massive investment into

modernising agriculture.


Currently agriculture (including fisheries) accounts for

22% of Aceh’s economy, and this contribution is expected

to increase as oil and natural gas reserves decline. The

contribution to GDP on Nias is even higher, with the

absence of revenues from oil and natural gas. Agriculture

is also the main source of employment providing work

for over 50% of the labour force. Modernising agriculture

and connecting farmers, both women and men, to

information, extension services, credit, processing, and

markets are seen as the key to poverty alleviation and

sustainable development in Aceh and Nias.

Over 50% of the farm workers in Aceh and Nias are

women, however women represent a lower percentage

of farm or land owners, hence have less decision making

power. Gender equity needs to be mainstreamed

throughout the rehabilitation and reconstruction

process in the agriculture sector to maximise benefits

and ensure the overall success of programmes and

initiatives to benefit women and families.

IOM, “Settlement and Livelihood Needs and Aspirations of Disaster-Affected and Local Community in

NAD:, May 2005.


2006 Progress Report

Improving livelihoods

Until 2004, the agricultural sector had shown mixed

results, with many of the main crops decreasing

production (e.g. soybeans, chilies or banana). Among

agricultural products, the majority (98%) is coffee and

exports of other agricultural products, like cocoa, vanilla

and patchouli, are constrained by small-scale production

and volatile output. Processing of agricultural goods is

rare and many Acehnese products (e.g. rice, coconut) are

processed in North Sumatra and sent back to Aceh for

consumption, robbing Aceh of much needed value added

activities and jobs. Most farmers in Aceh and Nias have

mixed livelihoods, consisting of various combinations of

food crops, livestock, estate crops, and fisheries.

Food Crops

Food crops provide the life line for rural families living

below the poverty line while contributing significantly

to GDP (8.7% in Aceh). The tsunami caused damaged to

over 70,000 hectares of farmlands. To date, about 50,000

hectares of fields have been rehabilitated and brought

back into production, through cash for work, community

contracts, material support for seeds and fertilisers,

and provision of agriculture equipment. This is one of

the major success stories of the rehabilitation process,

and reflects the combined efforts of the communities,

government agriculture services, BRR, ADB, FAO, and

numerous NGOs.

However, thousands of hectares of severely damaged

farmlands remain unproductive, and over half the farmers

in rural areas are still living below the poverty line. Thus,

an urgent programme is required during the period 2007-

2011 to rehabilitate the remaining farmlands or develop

alternative livelihoods, and to develop the potential of

the food crops sub-sector for alleviating poverty and

contributing to GDP.


Livestock raising is mainly carried out by smallholders,

both women and men, and contributes significantly to

the livelihoods of most farming families. Contribution to

GDP in Aceh is about 5.5%, equivalent to that of fisheries,

and there is considerable potential for expansion.

The tsunami devastated the coastal livestock populations,

including the loss of 40,000 cattle, 40,000 buffalo, 58,000

goats, 9,500 sheep, 1,300,000 chickens and 570,000 ducks.

As a result of the conflict and tsunami, there is now a

shortage of livestock in Aceh and livestock products

have to be imported from outside Aceh, resulting in the

highest meat prices in Indonesia: beef USD 7.60/kg and

goat meat USD 8.70/kg.

The 2006 programmes of ADB, BRR and FAO are laying

the foundations for livestock improvements, with direct

financial assistance to livestock groups (revolving funds)

and support for the rehabilitation of support services

(extension and training facilities, Integrated Animal Health

Centers, artificial insemination, control programme for

bird flu, livestock markets, meat markets and abattoirs).

Estate Crops

Most estate crops in Aceh and Nias are grown by

smallholders, and contribute to family livelihoods, as well

as to GDP (4.5% in Aceh).

During the conflict, it was not safe for farmers to tend

their estate crop gardens, and many plantations (total

390,000 hectares) were left unattended and largely

unproductive. The tsunami damaged an additional 28,000

hectares of estate crops (coconut, rubber, oil palm, cocoa,

etc.). To date, about 10,000 hectares of estate crops have

been rehabilitated/developed under the joint BRR/ADB

programme, along with the rehabilitation of important

support services (extension and training, office facilities,

laboratories). In spite of these investments, there is still

a huge need for rehabilitation and reconstruction in this



Rehabilitation and reconstruction in the fisheries sector

will be essential to restore productive assets, reduce

poverty, and develop the potential of the fisheries

sector to contribute to GDP and many thousands

of rural people. Whilst rehabilitation of the fisheries

sector continues to make good progress during 2006,

the need for substantial further investment is becoming

increasingly clear. Estimates suggest USD 900 million is

required during the period 2007-2012 for rehabilitation

and reconstruction of the fisheries sector, and to develop

the potential of the fisheries for alleviating poverty

and contributing to GDP. Such investment is expected

to generate substantial returns with gross revenues in

excess of USD 1.5 billion over a five year period.

Capture Fisheries

Capture fisheries provided food and income for many

poor coastal families before the tsunami. The sector

was dominated by small-scale fishers, and during 2006

progress continue to be made in replacement of lost

Pre-tsunami capture fishery values are estimated as USD 177 million, of which around 68% comes from

capture fisheries and 32% from aquaculture products. Improved investment and management is likely

to bring significant improvements in economic value of capture fisheries, conservatively estimated as a

20%/year increase over 5 years. Pre tsunami farm gate value of aquaculture produce in Aceh was USD

56.5 million. Investment is expected to lead to farm gate values greater than USD 100 million/year.

Aceh and nias t wo years after the tsunami


small vessels with over 4,000 new boats delivered by

BRR, MMAF, other Government agencies and donors,

replacing a high proportion of the lost vessels on

mainland Sumatra.

While smaller vessels have been replaced in many places,

this has not always happened where they are most

needed and where they form an integral part of assets

for livelihoods. Many owners, skippers and crew of larger

vessels still remain unemployed usually through lack of

operating capital which may have previously come from

outside the community, or indeed district. Safety and

quality of boats remains a concern, and in the west coast

islands of Nias, Simeulue and the Banyak islands, many

poorest fishers still await replacement of small boats for

simple subsistence fishing.

Concerns that coastal fishing will sooner or later

become unsustainable, as elsewhere in South East Asia,

have grown during the year. Detailed resource surveys

required to scientifically substantiate the condition of

the stocks, as a basis for rational management measures

are increasingly needed for subsistence and commercial

fleets. Improved capacity of government and fisher

organisations is also essential to better management of

the sectors development. More emphasis is needed on

hygienic handling of the fish starting on board the vessel,

improving and managing the cold chain, fish processing

and ice plants, markets, cooperative development, training,

value additions to fish products and other infrastructure

so that fishing communities can get greater rewards

from their catch.


Progress has been made in aquaculture rehabilitation,

by BRR, ADB, FAO, UNDP and NGOs. Around 6,800

hectares or around 25% of the damaged ponds and

canals along the north-east coast and west coasts have

been rehabilitated by end of 2006, although many ponds

are still not operating at pre-tsunami levels. Progress has

also been made during 2006 in rehabilitation of shrimp

hatcheries , and various small-scale aquaculture activities

such as marine fish cages, and grouper and milk fish

nursing. Further investment is essential to rehabilitate the

remaining damaged ponds and canals, as well as rebuild

and improve supply and marketing chains to restart this

important coastal economic activity. Investment is also

needed to strengthen services for aquaculture farmers,

develop capacity among farmer groups for better

management and improve access to markets.

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

Improving livelihoods

The aquaculture sector, producing valuable and sought

after products such as shrimp, marine fish and seaweed,

has major potential to contribute to the economy of Aceh

and improvement of livelihoods. The coasts of Aceh and

Nias have many suitable areas for growth of marine and

brackish water farming, and the inland areas substantial

potential for freshwater fish farming. Additional public

and private investment in farming, servicing institutions,

supply chains and market access will be essential to tap

the development potential of the aquaculture sub-sector,

and its contribution to rural livelihoods.

Fisheries Infrastructure

The earthquake and tsunami caused major damage to

fish landings, jetties, harbors and fisheries infrastructure.

The shallowing of many estuaries and river entrances

continues to make access to landing places more difficult

and dangerous, and the coastal environment remains

unstable in many areas. Good progress with support

from BRR, ADB, UNDP and others has helped restore

some of the damaged fisheries infrastructure during

2006, but the fisheries infrastructure remains severely

under funded.

Aceh and nias t wo years after the tsunami


Funding the



in 2006

It is important to note that financing needs for

reconstructing Aceh and Nias were calculated based

on data from early 2005 . Furthermore, they are based

on the concept of reconstructing to the level of what

existed before the tsunami; before the tsunami, Aceh had

a 30% poverty rate.

To find the core minimum needs the lowest figures of

the Damage and Loss assessment conducted in January

2005 were put together with Bappenas Masterplan of

The response from the international community to

the tsunami was unprecedented. Adding together the

Government of Indonesia’s contribution with that of

NGOs and Donors, the overall expected spending on

reconstruction is approximately USD 7.1 billion. By end

of October 2006, USD5.8 billion worth of projects and

programs had been allocated to the reconstruction

effort in Aceh and Nias. This is more than 80 percent of

the anticipated total reconstruction programme. Now,

the Government of Indonesia, donors and NGOs are

almost equal in size with around USD 2 billion each.

Reconstruction Need and Allocated Fund








- Upgrading facilities in Tsunami- and

potential soft loan (0.7)

earthquake- affected areas

Building back


grants (0.4)

- Post-conflict reintegation and

development programs

better (1.9)

NGOs (0.4)

GOI ( 0.5)

Inflation (1.2)

NIAS (0.4)

DONORS (2.1)


but not

allocated (2.0)




Damage and

Loss Assessment


Rebuilding (6.1)

NGOs (1.6)

GOI (2.2)


allocated to


projects (6.0)




Source : BRR & World Bank Staff Calculation

April 2005. Then for each sector, an addition was made

on the assumption of 15 percent operational cost and

20 percent inflation. There a growing opinion amongst

those working in Aceh and Nias that a more up-to-date

assessment of financing needs may be required based on

changes in operational cost, inflation, and other dynamics

on the ground, as we move into 2007.

The financing needs for reconstruction in Aceh and

Nias are estimated at USD 6.1 billion. This is comprised

of damages and losses from the tsunami estimated at

USD4.5 billion, the March 2005 earthquake in Nias

added USD400 million, and an additional USD1.2 billion

has been included for rising inflation.

There is an opportunity to “build back better” but rising

inflation makes the reconstruction programme more

expensive. With USD7.1 billion in resources and USD

6.1 billion in needs, additional resources of about USD1

billion could be used to raise Aceh out of a poverty level

of 30% and also to invest in long-term programs. Post

tsunami, the region has experienced high inflation, as high

as 40% at its peak in January 2006, compared to 23% in

Medan and 17% nationwide. This has led to an increase

in the early estimates of the cost of reconstruction,

and a reduction in the additional resources available for

“building back better”.


2006 Progress Report

Funding The Recovery



and Gaps

The diversity and preferences of the players has lead to a

mixed focus on the sectors. The Government of Indonesia

has been focusing on housing and local government

development. Donors are dominant in transport and the

community, whilst NGOs have been playing a leading role

in housing, health, water and sanitation, and livelihoods.

Critical gaps remain across sectors and in regional areas.

Though sufficient funds have been pledged overall to

support the rehabilitation and reconstruction programme,

the current allocation of funds already programmed by

the Government and donors will not meet the minimum

needs against the original damage assessment in some

critical sectors, such as transport and environment. The

extent of rural poverty indicates other major funding

gaps in terms of broader development.

On the regional allocations, areas around Banda Aceh

and Aceh Besar have more than adequate resources

to rebuild, whilst other areas such as a large parts of

the West Coast, south of Meulaboh, and the north-east

coast of Aceh (Kab. Aceh Timur and Aceh Tamiang) still

have inadequate allocations to meet even 50% of their


Sectoral Allocations




Governance & Adm


Community, Culture and Religion


Water & Sanitation

Flood control, Irrigation works

Other Infrastructure

Agriculture & Livestock



- 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 t wo years after the tsunami
















































Rasio Pembiayaan Atas Kebutuhan (%)

> 125

101 - 125

76 - 100

51 - 75

Below 50

Not Affected

District Boundary












0 25 50


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

Batas administrasi: BPS, 2006


2006 Progress Report

Funding The Recovery




Disbursements have been steadily rising since November

2005 and now stand at about USD2.2 billion. On average

in 2006, disbursements have been above USD100 million

per month, which is substantially higher than in 2005

but below expectations. The disbursement rates from

allocated funds vary significantly amongst key players:

NGOs have disbursed 60%, GoI 28% and multilateral/

bilateral donors 31%.

The peak in the reconstruction effort in terms of

disbursements is yet to come. For the planned

reconstruction period (2005-2009), the average

disbursements rate is expected to be USD1.6 billion

per year (approx. USD130 million per month). The

disbursements to date have averaged around USD110

million per month, suggesting that there will be a higher

rate of activity in the years ahead. However, as a group,

NGOs are showing 60% disbursements indicating that

they have in 2006 passed their peak in delivery.

Sector Disbursment Vs Allocated Project


Agriculture & Livestock

Water & Sanitation






Community, Culture and Religion

Governance & Adm (incl. land)


Flood control, Irrigation works



Other Infrastructure

Bank & Finance

0 10 20 30 40 50 60 70 80

Source : BRR & World Bank Staff Calculation

Disbursements and Allocations


US$ Million
















Pledges Allocated Disbursement

Source : BRR & World Bank Staff Calculation

Aceh and nias t wo years after the tsunami


The Challenges


Although there has been much progress and

enormous effort, the challenges ahead will continue

to be demanding. With more than 80 percent (USD

5.8billion) of funds already allocated to projects there

is less scope for major adjustments to match needs in

the years ahead. With current funding being disbursed

more slowly than expected, the peak yet to come, and

a mismatch in allocations against sectoral needs, there

is an opportunity for some of the larger donors to

close the sectoral funding gap in 2007 to ensure that

the reconstruction programme appropriately meets the

needs of the regions.

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


Pledge amount

USD million


Agreement signed

USD million

Cash Received

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

Funding The Recovery

Public Financial Management

A Public Financial Management (PFM) survey

has been conducted across Aceh to evaluate

financial management capacity in district and city

administrations. The PFM results provide a snapshot

of relative strengths and weaknesses in public

financial management. The framework is divided into

nine strategic areas identified as key determinants

of effective public financial management at local

government level. Preliminary results show a wide

divergence between administrations and between

strategic areas within an administration.

PFM scores for 14 sites

For much needed improved planning and

budgeting and for increased transparency and

accountability, action must be taken to improve

financial management capacity throughout local

governments in Aceh. A first, crucial, step is for

local governments to ensure they have proper

working regulatory frameworks in place followed

by working mechanisms to promote participatory

planning. Clear accounting and reporting

procedures need to be put into practice along

with the establishment of an independent and

transparent monitoring and oversight mechanism

with powers of enforcement.

Average scores for 9 strategic areas


Bener Meriah


Aceh Tengah

Banda Aceh







Aceh Jaya

Aceh Besar

Aceh Barat

Nagan Raya

External audit &












Planning &





Aceh Timur

Public debt &





Aceh Utara

Overall, relative weaknesses tend to be in the areas

of public debt and investment (achieving an average

score of only 29%), external audit and oversight

(37%) and local regulatory framework (38%).

Planning and budgeting scores only 44% across the

14 sites surveyed, indicating a clear need to improve

capacity in this area given the huge increase in funds if

medium and long-term development goals are to be

reached. The highest average scores were achieved

for procurement (61%) and internal audit (56%).

However, even higher scores in strategic areas show

weaknesses in some areas. For example, procurement,

whilst scoring high overall, only achieves only 33% for

systems and procedures to handle complaints. Newly

formed districts tended to score significantly lower

than their ‘older’ districts (50% compared to 40%, on


Internal audit

Accounting &


Local governments need to be involved as much

as possible in the implementation of BRR projects

to develop local government capacity. The results

can be used to monitor progress in public financial

management capacity, signaling both the ability

and willingness of local governments to play a

larger role in the design and implementation

of development projects financed by central

government and external partners

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 t wo years after the tsunami


Managing the


The regional


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


• to establish leadership in regions for decentralising


• to establish the operational capacity in regions to

improve delivery at local level

The concept of “Joint Secretariats” was introduced in

conjunction with the launch of the regionalisation strategy.

BRR Nias first developed a joint secretariat based in

Bappeda offices in May 2006. The mechanism recognises

the local government as the main stakeholder responsible

for the long term development while acknowledging

that BRR and other stakeholders involved in recovery

efforts are working in Nias for a temporary period. The

objective is to support the government in carrying out the

rehabilitation and reconstruction process with efficient

and effective planning, prioritization and decision-making,

including managing information and strengthening links

and communications between stakeholders.

The leadership for the regional programme was

established by appointing BRR regional heads for the six

regions. However, while BRR has recruited staff and

is attempting to strengthen the capacity and delegated

authority of BRR regional offices, the progress for

establishing Joint Secretariats has been slow, with BRR at

the regional level preoccupied with the implementation

of its own programmes, most notably housing

reconstruction, and with less capacity and attention on

planning and coordination activities. Promotion of an

area-based collaborative approach with local government

has been limited where BRR regional offices have focused

more on implementation of BRR-funded programmes.

BRR regional heads in particular need to show greater

leadership in coordination in housing, including where

the desire to accelerate housing implementation has

resulted in BRR housing staff stepping in too fast to

take over the beneficiaries and sites of NGOs whose

implementation has appeared slow. The challenge for

the coming year for BRR will be to achieve the right

balance between fulfilling the mandate of enhancing the

capacity and capability of local governments to assume

greater coordination and planning role and the need to

demonstrate significant and measurable progress in its

own reconstruction programmes.


2006 Progress Report

Managing the Reconstruc tion

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 t wo years after the tsunami





From the start of the programme implementing partners

have been willing to coordinate. However the scale of

the programme, and the number of actors, meant that

coordination has not proved easy. All parties have

learned that coordination means more than sharing

information, it means investing significant staff time to

the ongoing coordination process, and assigning those

staff with the authority to make operational decisions.

Experience from 2005 through 2006 has helped partners

to improve the coordination process and introduce

more appropriate mechanisms.

Coordination at the Sub-District Level

The coordination and cooperation amongst all

stakeholders at the sub-district level has improved

during 2006 in many parts of the West Coast through

the establishment of the Kecamatan Coordination and

Implementation Mechanism (KCIM). UNORC has led the

introduction and facilitation of stakeholders in affected

areas in and around Meulaboh and Calang. Chaired

by the camat and participated by NGOs, mukims and

heads of villages, KCIM is deemed as the optimal level

to collect data and information, whereby identifying

constraints to recovery process, gaps and overlaps, and

resolving these with locally available capacities where

possible. In this regard, the KCIM is a critical component

of the regionalisation strategy. Other organizations such

as YIPD, LGSP and AIPRD/LOGICA are also partnering

in this effort. The KCIM is now being rolled out to the

rest of the affected areas, including the North East coast

districts, Kota Banda Aceh and Nias. To assist the local

authorities, notably the camats, in making informed

decisions, the standardized Kecamatan Reporting

Systems (KRS) has been introduced by the UNORC

Information and Analysis Section (UNORC IAS), as part

of the UN support to the BRR information and data

management efforts. It is envisaged that the data and

information collected through the KCIM also feed into

district and provincial level planning and decision making.

This in turn will help in development and implementation

of practical policies.

Sectoral Coordination

In key sectors, some of the regional sectoral working

groups have become much more effective with active

participation and leadership by local government. In

Meulaboh, Cipta Karya leads the shelter and settlement

coordination at the district level. It chairs the bi-weekly

coordination meetings, updates the activity matrix, and

verifies the beneficiary lists with support by UNORC

and LGSP respectively. Information from KCIM feeds into

the district level shelter and settlement coordination.

Shelter and settlement coordination has been expanded

to include infrastructure and water and sanitation with

the aim of establishing linkages the shelter reconstruction

and the provision of utilities such as electricity and

water. In future, it is necessary to establish closer linkage

between the livelihoods sector with the settlement

and infrastructure to ensure that a lack of livelihoods

opportunities does not prevent people from moving

into newly built houses.



A highlight in 2006 has been the successful transition of

the HIC/UNIMS geographic information system to BRR

through the establishment of the Spatial Information

and Mapping (SIM) Centre. BRR now possesses the

spatial data capacities to support decision making and

coordination through the development of maps, data

packages and digital format products. The SIM Centre,

funded by the government of Norway, provides an

invaluable service to the wider recovery community in

support of their recovery and reconstruction projects.

The SIM Centre is also building the capacity of Provincial

Government Agencies to use spatial information for

planning and decision making, with the eventual aim of

facilitating the transition of this capacity out of BRR at

the end of term.

The publicly accessible RAN database, BRR’s centralized

information system, is based on voluntary NGO and

agency information contributions. During 2006, the

database has been populated with information on

more than 5,000 projects. With continued technical

improvements, the RAN database has become a repository

of detailed project information and project progress

reports. Key Performance Indicators (KPI) illustrate

sectoral progress and project developments. Financial

information, such as commitments and disbursements,

captures funding flows that underpin the recovery

process and ensure transparency and accountability.


2006 Progress Report

Managing the Reconstruc tion

However, the RAN relies on voluntary contributions,

hence the strong involvement of stakeholders is needed

to ensure data quality and validation. This stakeholder

involvement depends on user-friendliness of the system

and a focus on priority areas and products to satisfy

key stakeholder information requirements which is a

continual challenge.

BRR’s expansion from a solely coordination role to

implementing recovery projects has heightened the need

for accurate data and progress information. Stringent

internal reporting mechanisms and specifically designed

databases complement BRR’s efforts to keep abreast with

developments. The challenge ahead is to integrate the

various data systems to provide a consistent recovery

overview of off-budget and on-budget efforts and help

identify remaining gaps.

Information Analysis Section (IAS)

Recognizing the urgent need to improve analysis

to enable effective policy making, BRR, UNICEF

and UNORC signed a letter of agreement on 19

June 2006 to establish the UNORC Information

Analysis Section (IAS). UNORC IAS is consolidating

available data sets from BRR, BPS (statistics bureau),

line ministries and other partners within a resultsbased

indicator framework to enable comparative

demographic trend analysis on recovery. The

objective is to ensure that stakeholders can make

informed and timely adjustments to their assistance

programmes by tracking the rate and direction of

recovery and identifying unmet needs and inequities.

This activity adopts a holistic approach by focusing on

cross cutting themes, such as gender and vulnerability,

to assess the full socio-economic impact of recovery

on the lives and livelihoods of the people of Aceh

and Nias. The activity will ensure sustainability and

strengthening of local capacity in data collation,

analysis and reporting through partnership with

government agencies, including BRR, BPS and BPDE

(electronic data management bureau). UNORC IAS

will also continue to support and reinforce local

government information management required

for the overall recovery planning framework.

Furthermore, the UN will commit itself to continue

its support for the implementation of the Recovery

Aceh Nias (RAN) database of BRR to promote and

strengthen the Government’s coordination and

monitoring capacity.

The newly established UNORC Information Analysis

Section (IAS) is supporting BRR in these endeavours.

UNORC IAS provides an increased capacity to link

disparate information sources and conduct analysis that

informs decision-making. UNORC IAS has developed

strategic partnership with local government institutions,

notably BPS (National Statistics Agency) and BPDE

(Agency for the Management of Electronic Data), to

build long term capacity in information management and


UNORC IAS is also supporting BRR with its commitment

to provide relevant information for the Tsunami

Recovery and Impact Assessment and Monitoring System

(TRIAMS). In May, Indonesia and the other major tsunami

affected countries agreed to provide a common set of

output and outcome indicators on recovery. The end of

2006 figures for Indonesia are include in the annexes of

this report.

The establishment in 2006 of BRR regional and district

offices and Joint Secretariats with the local government

and UNORC has made the provision of timely and

accurate data on recovery at the sub-provincial level

a priority. To support this, Camats from 25 tsunamiaffected

subdistricts agreed in September to hold regular

coordination meetings with organisations working in

their areas and to adopt a standardised reporting format.

The support of recovery organisations and the Joint

Secretariats has enabled this process to begin to collect

data on recovery and to empower local government

involvement and ownership. Moving forward, the joint

secretariat offices play a key role in consolidating bottom

up progress and needs data to inform effective policy

making at the local level.

Tim Terpadu


Services Team

Tim Terpadu, translated as “external services”, was

established in December 2005 as a support unit within

BRR that combines a range of government services to

assist foreign nationals and organisations participating

in the recovery programme of Aceh and Nias. The unit

comprises representatives from directorates of various

government ministries, including the Department

of Industry, Trade, Finance, Law and Human Rights,

Foreign Affairs and the Department of Manpower and


Aceh and nias t wo years after the tsunami


With the exception of agreements between the

Indonesian Government and the United Nations and

other international organizations domiciled in Indonesia,

there are no Indonesian laws that specifically regulate

the presence of foreign nationals and organizations in

Indonesia for recovery assistance purposes. The Tim

Terpadu is the first facility of its kind, established to

address this situation and facilitate the processing

and approval of various government administrative

requirements through a ‘one-stop shop’ facility.

The international response to the tsunami and

earthquakes in Aceh and Nias has resulted in thousands

of foreign nationals and many international organisations

working in Indonesia. Under normal circumstances,

the administrative procedures for foreigners and

international organizations working in Indonesia require

a significant period of time to process and can be costly.

The de-centralised government facilities offered by Tim

Terpadu have streamlined these processes and during

this year alone more than 7,000 individual immigration

requests have been processed

Apart from the administrative requirements for

foreign nationals and organisations working in Aceh

and Nias, Tim Terpadu has also been responsible for

providing operational assistance and concessions for

the importation and transportation of equipment and

materials for the rehabilitation and reconstruction

programme. This is one of the most challenging aspects

of Tim Terpadu’s operations as it relates to logistics and

is subject to the level of planning and organisation of

Summary of Tim Terpadu Services

For foreign nationals:

• Registration of foreign nationals

• Visa authorisation

• Multiple and re-entry permits

• Temporary stay permits

• Extension of visitor permits

• Exit permits

For organizations:

• Registration

• Tax exemptions

• Advice and support for:

- Procurement of materials

- Importation of goods

- Transportation of goods

participants in their procurement strategies and supplychain

management. The directorates for Trade and

Customs and Excise are responsible for this division

within Tim Terpadu and their principle activity is to

provide advice and support for the procurement of

materials, especially with respect to imported goods

and the transportation of goods between provinces. In

addition, they assist local authorities in determining tax


The inordinate amount of materials required for the

reconstruction programme has stretched the logistical

capacity of many organisations working in Aceh and

Nias and Tim Terpadu operations now include help desk

facilities to assist in procurement.

Tim Terpadu is providing services essential to the

rehabilitation and reconstruction of Aceh and Nias and

by doing so it is exemplifying the cooperation between

the Government of Indonesia and the international

community. Within a short period of time it has

established a model of inter-governmental cooperation

and it is anticipated that the operational procedures

it has developed will assist in the future formation

of a governmental response portfolio to disaster

management. The unit’s strategy goes even further. With

BRR’s exit strategy planned for 2009, Tim Terpadu will

gradually normalise its operations to ensure, upon its

disbandment, the hand-over of its operational procedures

to local government departments in Aceh and Nias.


supply chain

and shipping


Many aspects of logistics continue to present major

challenges to those engaged in the rehabilitation and

recovery effort. The programme has enjoyed significant

successes in the areas of timber and the introduction

of the United Nations World Food Programme

Shipping Service. Other key issues include the impact

of infrastructure projects on the supply chain, housing

logistics, and an assessment of the logistics of nongovernmental

organisations engaged in construction


The impact of infrastructure projects on the supply

chain has been a significant unknown factor. To resolve

this, BRR has hired an experienced civil engineer as a

technical adviser to identify all infrastructure projects


2006 Progress Report

Managing the Reconstruc tion

with their relevant timelines to determine both the

supply chain impact and the ability of the transportation

infrastructure to accommodate all requirements. This

project commenced in June 2006 and is expected to

conclude in December.

Housing logistics continue to remain a challenge. BRR

Housing has set up a depot system with a commercial

contractor to supply construction materials to all

those engaged in the recovery process. The transport

portion of this is relatively clear and straightforward.

Logistical planning for houses to date has focused on the

traditional type of house which is a worst case scenario

as that is the most demanding based on overall weight

and volume of materials. BRR has used this scenario

to determine port throughput capabilities and believe

they can move the material necessary but will encounter

congestion in some ports. It is vital that the housing

materials be moved as soon as practical because as the

infrastructure projects are started in 2007 and beyond,

Building in Remote Communities in Nias

Remote communities are often left behind in recovery

because of the incredible logistical challenges involved

in building. In order to serve the communities of

remote villages which are inaccessible by road, HELP

transports building materials by canoes and small

rafts through shallow rivers.

The March 28, 2005 earthquake dramatically changed

the geography of Nias Islands. Muzoi Village, which

has no connecting road, lost boat access when the

earthquake elevated its nearby river. Now, only

canoes and rafts can travel up the river.

In order to transport materials into Muzoi Village,

HELP carved a one-kilometer road through

surrounding forest to allow its four wheel drive

trucks to reach the village river. From the soft river

bank, without the help of a pier, building materials

are then shifted onto canoes or rafts which travel

down the shallow river. Loaded with concrete and

other building supplies, this method has proven to

be a dangerous but necessary course. These canoes

and rafts dock at four different communities of the

village along the river, unloading supplies.

HELP arrived in Nias following the December 2004

earthquake. When the March 2005 earthquake hit Nias,

HELP began its shelter programme including in remote

areas of the island.

there is potential for increased strains on the transport


NGOs have taken up a large part of the housing burden

and BRR is particularly grateful for their commitment

to this. Because of the number of houses they have

volunteered to build, the demands on them are great.

There have been concerns about NGOs logistical

capacity and ability to manage their supply chains. BRR

has had technical advisors for part of this year to work

with the NGOs who need assistance in an effort to

enhance their planning and logistics capacities.

Timber supply

Timber supply has proved problematic for Aceh and Nias

reconstruction programmes. Problems have occurred

in the areas of administration of timber importing and

transportation, lack of sufficient supplies of legally and

sustainably produced timber, timber quality, appropriate

timber usage, and price inflation. In the last year, BRR has

implemented several initiatives to address these issues:

• BRR has established the Timber Help Desk (THD)

that is attached to Tim Terpadu. The THD has

played a key role in providing timber information

for relevant stakeholders or users that are dealing

with reconstruction and rehabilitation in Aceh and

Nias. The THD organised a Timber Trade Show held

in Medan on 19 – 20 June 2006. It prepared a list of

verified domestic timber suppliers and brochures

with information on timber administration

procedure, timber quality, and timber suppliers.

• Tim Terpadu provided streamlined procedures

for the administration of timber importation

and transportation working closely with the

Departments of Customs and Forestry. Tim

Terpadu also worked closely with GOI, UN

Agencies and NGO’s whenever requested to

resolve administrative problems.

• FAO, MDF and AIPRD sponsored the Timber

Advisers who provided technical assistance to BRR

Housing, Tim Terpadu and the THD. The activities of

the advisors included preparation of documentation,

timber needs survey, workshops with stakeholders

on needs and concerns, and liaison with Ministry of

Forestry and local government.

These efforts have resulted in the elimination of the

“timber problem” as it was once known. Challenges

remain, but there is now an effective mechanism in place

to provide assistance to NGOs, contractors and others

who are engaged in reconstruction and rehabilitation


Aceh and nias t wo years after the tsunami


The World Food programme Shipping Service

At the request of the United Nations Office of the Recovery Coordinator (UNORC) and the Government of

Indonesia’s Agency for Rehabilitation and Reconstruction (BRR), the United Nations World Food Programme

(WFP) Shipping Service was established in November 2005 to facilitate sea delivery and logistics coordination

for reconstruction and rehabilitation materials thus minimizing disruption in the reconstruction effort. A

loan of USD 3 million from the WFP Working Capital Fund started the operation in a very short space of

time. A grant of USD 24.7 million from Multi-Donor Fund (MDF) enabled WFP Shipping Service to reach full

operational capacity quickly.

WFP Shipping Service’s activities have included:

• Managing sea transport for UN, BRR and NGO’s humanitarian and reconstruction materials

for tsunami-damaged communities with a fleet of landing craft and conventional vessels, for

commodities in break-bulk unit loads or as RORO (roll-on roll-off) cargo.

• Providing logistics coordination, port captains, load consolidation, materials handling equipment—

vital services to the reconstruction of Aceh and Nias.

• Moving building materials and commodities needed for communities to develop, ranging from

sawn timber, steel frames, corrugated sheets, plastic pipes, cement blocks, gravel, sand, watsan

equipment, vehicles, rice, noodles and biscuits, vegetable oil, fuel oil in drums and supporting

equipment. Established temporary landing sites and repairing sea-side access points to serve

more than 30 locations in Aceh and on nearby islands where commercial operators have been

unable to access, or have been unwilling to serve.

WFP Shipping Service ship fleet has been deliberately designed to be flexible to the demands of the

reconstruction effort. When demand has dictated, the fleet size has been adjusted accordingly. As much as

83,572mt (representing 229,022 cubic metres) of construction material and food-aid were shipped during the

period November 2005 until 6 October 2006, serving more than 80 organizations: UN agencies, NGOs and

Indonesia government agencies.

On 1 August 2006, the Shipping Service implemented cost-recovery on the direction of the MDF and BRR as

a prerequisite for additional funding. This stipulation is embedded in the concept of the Shipping Service as

key to enhancing the potential for commercial operators to enter the market on the routes served and is an

inherent element of the BRR strategy for economic stimulus.


2006 Progress Report



Integrity and




Quality assurance includes development of systems

and policies to oversee quality control of individual

projects and outputs. Some quality shortfalls in the

reconstruction programme relate to lack of skills,

supervision or management intervention in delivery.

Attempts to manipulate tenders, and compromising or

‘cutting corners’ on the quality or quantity of products

used in project implementation, represent some of the

ways in which the quality of work may be undermined.

Some issues of quality clearly relate to ethics and the

potential misuse of resources.

Initial BRR work, that started in 2005 and continued until

August 2006, in the area of quality assurance included the

team of professionals contracted for the Procurement

Quality Assurance and Monitoring (PQAM) programme.

The team was deployed to review the tendering

processes to identify areas of concern and to oversee

the monitoring and delivery of government funded

construction projects. Various weaknesses identified

ranged from poorly managed tender processes through

to lack of remediation of works. The delivery units

(‘Satker’) employed to deliver the government projects

unsurprisingly also suffered from a lack of experience in

dealing with the scale of the projects, and in construction

faced similar constraints to that of other implementing

partners in logistics, materials supply and managing

poorly performing contractors. Since the conclusion of

the work of the PQAM team a number of institutional

arrangements have been put into place, including

Procurement Services and Quality Management units

under the management of the BRR Chief Operating

Officer. NGOs have similarly faced problems in

delivery quality, and several have taken significant steps

in employing larger or more experienced contractors,

employing staff and different systems for procurement,

and where necessary taking decisive action in revising or

re-doing work.

Construction Quality

In Aceh and Nias many structures were severely damaged

because most of the buildings were not built to withstand

earthquakes, despite the region’s predictable and frequent

earthquake activity. Rehabilitation and reconstruction

must comply with building codes in design and practice

in order to provide appropriate earthquake resistance

and disaster preparedness.

However, a widespread lack of technical understanding of

seismic design and construction detail, poor building skills

and a lack of safety culture lead to irresponsibility on the

part of building contractors in assuring a safe building.

Too often cutting costs in construction takes precedence

over compliance. Close supervision can alleviate some

problems but contractors must be managed, taught,

and obliged to meet the quality standards. Some of the

major NGOs in particular realised these weaknesses

early on and adjusted their delivery methodology to put

in place stronger systems of monitoring combined with

extensive training of site supervisors. From anecdotal

evidence implementing partners consider that quality and

systems have improved. Particular action taken has been

against common examples of poor quality such as the

use of too few or even a single rod as concrete column

reinforcement; concrete columns cast in stages reducing

concrete strength considerably; non-compliant concrete

mix materials and poor mixing, again reducing concrete

strength; using smaller diameter reinforcing bars; poor

quality bricks, not tied into supporting structure so at

risk of collapse. These examples in particular exacerbate

the risk to human life in the event of an earthquake.

Experienced implementing partners have held

training workshops on complying with building codes,

workmanship standards, seismic design and construction

detail in response to the widespread lack of technical

understanding. NGOs less experienced in construction

have adjusted by investing more in professional

engineering expertise. The recognition that, whilst many

NGOs have strengths in community based participation,

the scale of physical reconstruction work was beyond

their capacity, has been a difficult lesson. However, for

a number of partners it has led to the engagement of

private sector consultants and major contractors, which

is resulting in more efficient and improved standards in


Implementing agencies including BRR have employed

additional local supervision consultants and trained

community members in identifying faults. BRR Nias,

for example, has trained supervision consultants on the

Nias Building Code, in aspects such as good design and

construction principles. The supervision consultant must

disseminate the Code amongst beneficiaries so that they,

in turn, will be better able to monitor the construction

of their own homes. Beneficiaries are equipped with

a construction checklist and house unit blueprint, and

supplied with construction complaint forms in the village

office to record problems. A technical field officer will

regularly visit the village, respond to any complaints, and

conduct regular village meetings to monitor progress.


2006 Progress Report

Promoting Quality, Integrity and Equity

Construction quality is notably improving as beneficiaries

increasingly have greater confidence in dealing with



A significant ongoing challenge for BRR, local government,

donors and NGOs, has been to employ speedy and

appropriate procurement processes as close to the

point of delivery as possible. Capacity was often not

available to handle the scale of projects and associated

funds in the field; pre-existing capacity was better suited

for smaller programmes. Also the standard processes

for procurement for the sums of money involved tended

not to be sufficiently fast or flexible. Where authority

was delegated to the field for emergency response on

such a scale, management capacity was stretched: where

authority was not delegated, the systems proved slow

and unable to respond to rapidly changing needs.

BRR is very keen to accelerate the pace of rehabilitation

and reconstruction. A regulatory initiative to accelerate

procurement was Presidential Decree No.70 that gave

BRR leeway to directly appoint planning and housing

contractors during the first 6 months of 2006. This

enabled the appointment of some 900 small contractors

to build housing. However one consequence of such

fast track procurement practices is that it is more

difficult for programme managers to defend the reason

for appointment in the current scenario of enhanced

and critical public scrutiny, including complaints from

those contractors that were not appointed. As a result

the authority to use a direct appointment approach has

brought both benefits and new pressures. In applying this

new system BRR adopted a very open pre-qualification

process to vet potential contractors and consultants.

This process led to over 3,000 companies putting

Procurement Certification for

Government Officials

Presidential Decree 8 requires that all government

officials have to be certified in order to take part in

procurement. This is to have applied from January

2006. However given the low rates of staff passing

the required certification, this has been amended so

that the requirement to be certified applies from

January 2008. In the interim period government

officials must have to undertake the required training

at least, at the same time as seeking to pass the

certification tests.

forward applications of which approximately 40% were

accepted. Of those selected over 88% were Aceh based


Within BRR, through lessons from the MDF-funded

PQAM programme and a recent World Bank analysis,

weaknesses have been identified in implementation

through the on-budget ‘Satker’ system. Efforts are

ongoing to improve the system, including establishing

a dedicated Procurement Service Unit (PSU) who will

oversee procurement and introduce improvements,

including e-procurement from early 2007.


and countercorruption

Anti-Corruption remains a prime area of concern in

the reconstruction programme. Critical to the success

of any counter-corruption agenda is to place it within

a wider programme of strengthening organisational

integrity and programme delivery. NGOs and

implementing agencies are handling large fund flows and

continue to be keenly aware of the need for vigilance for

accountability. An important institutional component

to counter corruption has been BRR’s Anti Corruption

Unit, known in Indonesian as SAK. The Unit, which has

been operational since mid-September 2005, operates

on the basis that an effective programme to counter

corruption requires a combination of work in the areas

of corruption prevention, education and enforcement.

The Unit also manages an active complaints management

facility. Since its inception to the end of September

2006, the SAK has received some 1,030 complaints. It

should be noted that one case may consist of several

individual complaints, such as in the case of a challenged

tendering process. Of these complaints 40% related to

tendering issues while a further 16% related to project

implementation concerns. This included concerns

about quality, timeliness etc. Concerns about corruption

represented 13% of all complaints received. A total of

767 complaints, approximately 75% of all complaints

received, have been investigated and resolved, while

250 complaints remain under investigation. A further

13 complaints have been forwarded to specialised units

for further follow up, including 7 complaints which have

recently been submitted to the Corruption Eradication

Commission (KPK) for further consideration. The Unit is

also finalising preparation for submitting further batches

of these complaints. Among the 15% in “other” includes

Aceh and nias t wo years after the tsunami


matters such as seeking ethical guidance and information

as well as suggestions and complaints in relation to

non-corruption criminal issues. The Unit does not have

authority to prosecute, hence the need to refer to other

agencies following its investigation.

Complaints Filed at The Anti-Corruption Unit

Rights demand

by victim 7%

Rules, procedures

& compliance 9%

Other 15%


Corruption 13%


issues 40%


implementation 16%

BRR has been working with INGOs, donors through the

MDF and the UN to establish mechanisms for integrating

complaints management. This is to ensure that an

effective response to complaints submitted by citizens

to any agency is possible. The SAK unit is the key focal

point for BRR. Separately BRR’s integrity partners have

come to agreement on sharing basic information on

their contracting partners as part of an effort to enhance

disclosure and transparency in the area of contracting.

The Supreme Audit Agency, BPK, opened a dedicated

provincial representative office in early 2006 and to

date various components of the BRR have been subject

to 5 separate audit and reviews by BPK. The BPK is

also a member of the INTOSAI group of international

supreme audit agencies that met in Vienna in 2006 to

agree cooperation to enhance the sharing of information

among all the key donor nation supreme audit authorities.

This will provide all partners with a clearer, more

comprehensive and accurate picture of the financial and

programmatic situation on the ground across Aceh and


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.

BRR Staff Integrity Pact

BRR as an agency has sought to set a new standard

for government and adopted a zero tolerance

approach to corruption. Among BRR’s first step

towards building a firm system of integrity was the

introduction of an Integrity Pact system. This has

now been in operation for over one year. BRR

recognises that having management and staff sign up

to an Integrity Pact is but a first step. Implementation

of, and compliance with, the Pact must be enforced.

Progress also needs to be reviewed and submitted

to public scrutiny. To this end BRR and Transparency

International Indonesia (TI-I) have agreed that TI-I will

conduct an evaluation of the Integrity Pact process

within BRR. BRR has also asked that the evaluation

also involve expertise from TI headquarters in




Community consultation and participation has from the

outset been identified as a key element of reconstruction

in Aceh and Nias. Although methodologies may differ, all

agencies consider accessible public information integral

to their commitment to accountability to beneficiaries

and to a sustainable programme. The importance of

two-way dialogue with beneficiaries was highlighted in

CFAN in May 2006 and also by the TEC report launched

in July 2006.


2006 Progress Report

Promoting Quality, Integrity and Equity

The dynamic situation that is Aceh and Nias reconstruction

at field level requires all players to be adaptable and

fully aware of changes that are necessary for effective

delivery, most important of these players being the local

communities. Keeping expectations realistic and keeping

beneficiaries informed of the many obstacles that affect

the pace of reconstruction is integral to maintaining

social cohesion and preventing disappointment within

the affected communities. Agencies that have succeeded

in maintaining a dialogue with the beneficiaries with

whom they are working have found that given proper

information and explanation, beneficiaries are willing to

show patience and understanding when it comes to speed

of delivery. For example, in some housing programmes,

effective communications have led to greater trust from

beneficiaries allowing them to make choices relating

to their houses based on a solid relationship with the

implementing agency involved rather than based on

statistics and data alone. The demonstrations at the BRR

offices in September 2006 by a group made up of people

living in barracks exemplified a lack of existing effective

communications channels. This issue is currently being

rectified by the formation of a UN, NGO, BRR Task

Force to deal specifically with the needs of those living

in barracks.

With much of the reconstruction programme yet to

happen in 2007 and 2008, the importance of effective

communications channels will become increasingly

important. Furthermore, many programmes currently

being implemented will be handed over to local

partners in 2007, again emphasising the need for proper

communications. Issues related to difficulties in obtaining

accurate information, inconsistencies in local media

reporting and lack of local language knowledge amongst

the international players will all need to be overcome in

order to meet the collective goals in public information

and communicating with beneficiaries.

Nias Public Outreach

The Public Information Centre (PIC) for BRR Nias was established in February 2006. The PIC serves beneficiaries

and local media of Nias, as a central point for BRR’s media relations, stakeholder relations and community

outreach operations.

PIC conducts public outreach through community consultation village meetings, and public information

distribution through a fortnightly publication and weekly interative radio programme.

Fatuhe magazine (Fatuhe means working together in Bahasa Nias) contains news and recovery data and has been

published since February 2006. BRR Nias has 5000 copies of Fatuhe published fortnightly which are distributed

to beneficiaries through local government, churches, mosques, and local NGOs.

Since June 2006 BRR Nias has conducted a Radio Talk Show every Friday night in Gunung Sitoli through

RRI radio station. Various topics have been discussed, focusing on the Nias housing programme, policy, and

complaints, traffic policy, and Q & A with the community.

Complaints Handling

BRR Nias is working to facilitate a complaints handling mechanism that links community complaints to the

relevant source for resolution, be it the BRR Housing Sector, a Village Chief or the local police. BRR Nias is

supporting local communities and local government to take responsibility for the complaints and resolution

process where relevant. Meanwhile, criminal or corruption issues are passed on to police or the BRR Anti-

Corruption Unit (SAK). To support this approach, BRR has socialized a Standard Procedure (SOP) for housing

complaints that involves local government (the Chief of Village and Chief of Sub-District) as well as local


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,, for journalists and BRR staff.

Aceh and nias t wo years after the tsunami


Gender Equity

Concerns regarding gender equity were expressed by

civil society, donors and implementing partners from

early 2006. While some concerns were and will be

addressed by targeted initiatives, BRR’s director led

the creation of a comprehensive framework to better

address gender issues across the programme. The Gender

Working Group, a coalition of women’s organisations,

and others work with BRR in developing policy, strategy

and implemention, including programming, development

of gender-sensitive progress indicators and monitoring


Policy and Strategy

BRR in September 2006 officially launched its policy and

strategy paper on “Promoting Gender Equality in the

Rehabilitation and Reconstruction Process.” The paper

has been developed in recognition of the need to identify

effective ways to integrate gender-responsive actions in

the process of rehabilitation and reconstruction and

to provide a framework for agencies operating in Aceh

and Nias to further enhance their efforts in working

towards greater gender equity. The proposed policies

and strategies encompass all sectors, providing a gendermainstream

perspective in the formulation of policies,

planning, and implementation within areas like housing,

infrastructure, economic development, health, education

and social, religion and institutional development.

In education and economic development, for example,

equal distribution of economic resources, vocational

training and scholarships are emphasised while, in the

health sector, post-natal care and skilled birth attendances

at village and sub-district levels are prioritised. A range of

policies are proposed to support the creation of a pool

of women leaders in fields like religion, technology, media

and enterprise development through the introduction

of capacity building programs, tailored training, language

training, exposure visits and follow up forums. The paper

also identifies a number of legal areas where gender

issues must be supported and facilitated including

domestic violence and inheritance.

Conditions in temporary living centres have been

hard for women and children due to lack of security,

inadequate facilities, lack of privacy and limited financial

resources. Short term priority programmes to address

these concerns, with a specific focus on widows, are



2006 Progress Report


Ahead to 2007

Looking ahead

to 2007

It is 2 years since the tsunami disaster that devastated

Aceh, and approaching 2 years since the earthquake

that devastated Nias. The progress statistics show

considerable achievements towards the reinstatement

of what was lost, varying between sectors, with systems

in place but with substantial implementation still to

go. The delivery partners in the recovery effort have

learned from two years experience and have become

more conscious of their mandates, areas of interest and

strengths, so are improving their delivery or shifting


Meeting Vital Needs

Identification of beneficiaries is critical to ensure that the

needs of the most vulnerable are met and for efficient

and credible allocation of housing and other resources.

It is appropriate for BRR as lead government agency to

act on this, and BRR are developing an identification card

and registration system for launch in 2007.

Land titling has constrained the housing programme for

two years now. Policies and the RALAS programme were

in place in 2005, but the issuance of certificates remains a

bottleneck. Increased focus on land acquisition and tenure

issues will help speed up the housing reconstruction

process, and particular attention needs to be paid to

land acquisition for renters, squatters and non-returning

IDPs. This will require full attention from the National

Land Agency (BPN) from central government down to

field level, and a frank assessment of operational capacity

and commitment, along with closer coordination with

district heads and local government planning agencies.

Coordination within the housing sector has improved

in the previous two years but housing and settlement

planning still needs better integration with other sectors,

particularly infrastructure and livelihoods restoration, to

ensure sustainable recovery for communities. Greater

emphasis will need to be placed on local government

participation in the reconstruction process through

increased coordination and support for local level

planning processes and mechanisms.

Spatial planning should have preceded implementation

of all reconstruction programmes. The village planning


2006 Progress Report

Looking Ahead 2007

programme has exposed weaknesses amongst the major

actors, with planning activities overlapping and efforts

being duplicated. This has resulted in critical areas being

overlooked in the first 2 years of the reconstruction

programme. The BRR will need to consolidate with all

the stakeholders in this critical exercise and designate

geographical and technical areas of responsibility that

require urgent attention.

Housing delivery must continue at full pace but with

a stronger eye on quality and increased capacity for

intervention and remediation. An accurate beneficiary

database is crucial to providing one new house per

household and avoid a surplus of housing stock or

fraudulent claims. BRR must take a more decisive role

in monitoring and coordination. While the housing

needs in many areas such as Banda Aceh have been well

addressed by donors and NGOs, numerous gaps remain,

particularly in remote areas and on the islands of Nias

and Simeulue. BRR needs to ensure a more efficient

reallocation of resources for primary and unfulfilled

reconstruction needs.

Improving the quality of housing reconstruction is a key

issue for 2007 and significant investments to support

quality assurance in housing construction are necessary.

In addition, mitigating the risk of longer-term negative

impacts requires that land policy, spatial planning

guidelines, and building codes be respected. Greater

attention must also be given to disaster risk reduction

and potential environmental hazards in the planning,

design and construction of housing.

Providing Social Services

The coming year is crucial in ensuring the successful

transfer of assets to government agencies with the

capacity to manage and maintain them and offer

the appropriate range and standard of services to

communities. To support this, specific initiatives are

needed to develop local government capacity.

In education, much of the focus to date has remained

on school reconstruction, and there will need to be

greater focus on addressing the quality of education in

2007. There has been progress in improving access to

education, but improving quality of education is a long

and slow process, and it requires much institutional

capacity strengthening, as well as community participation

and social surveillance. Effective implementation of the

Aceh Five-Year Education Strategic Plan should establish

excellent foundations for the continuous improvement

and development in education.

In health, activities in 2005 were primarily focused on the

provision of adequate emergency health services, while in

2006 activities have focused more on the construction of

health facilities and infrastructure as well as preparations

for the development of human resources in the health

sector. Effort in 2007 will continue to develop the

human resource base and strengthen health system

management by providing and determining standards of

health services, which cover posyandu, village maternity

posts, auxiliary community health centres, community

health centres, hospitals, health education and training

agencies as well as health programme innovations by

applying local-wisdom-based services. A concern for

the sector is also how to shift from the emphasis on

curative services towards preventative health services

and programmes.

Managing Disaster Risk and

Environmental Impact

A Disaster Risk Reduction policy and framework will need

to be ratified and socialised amongst all reconstruction

partners. This process must emphasise and describe

the inherent role of disaster risk reduction in “building

back better” and in underwriting and safeguarding

the extensive human and financial investment that has

characterised the reconstruction so far. Early warning

systems will need to be expanded to as many vulnerable

areas as possible.

The BRRs proposed Strategic Environmental Framework

should be aligned with Disaster Risk Reduction Strategies

and both be supplemented with appropriate rapid

appraisals that can highlight the overall opportunities

and risks of the recovery effort portfolio. The current

procedure for assessing expected environmental

impacts of reconstruction projects is regarded as

deficient, one bottleneck being the limited resources

and capacity of local government and service providers

in Aceh to carry out the required environmental

impact assessments (EIAs/AMDALs). local government

capacity must be improved significantly and at short

notice; due to the transient character of this demand,

possibly taking into account additional short-term

external help. As an important tool for environmental

management, environmental monitoring capacities in

Aceh must be installed or improved. This will require

complementing some laboratory equipment, a capacity

development programme and the installation of a GIS

based environmental information system.

Aceh and nias t wo years after the tsunami


Establishing Infrastructure

The IREP and IRFF programmes are poised to offer

the planning and implementation framework for a

solid infrastructure base for longer-term development

that goes beyond the needs of reconstruction. The

programmes do not cover all geographical areas, but

offers a model to be used throughout, with an appropriate

vehicle for funding and harnessing international high-level

expertise. However, building up the government capacity

to manage utilities and deliver services still requires a

stable political and administrative base and supportive

policy framework. The scenarios in Aceh and Nias offer

potential for innovation in means and quality of delivery

to all members of communities. That is likely to require

significant effort to create effective and accountable

partnerships between government, donors and private


Improving Livelihoods

Livelihoods for the vast majority of people in Aceh and

Nias remain vulnerable and 2007 must improve the

short-term opportunities available to people, particularly

the poor and to combat the increasing cost of living

and inflation. Addressing rural poverty, particularly

for women, will be one of the long-term challenges

facing Aceh and Nias. The stark decrease in growth in

agriculture in 2005 was accompanied by a sharp increase

in poverty. There is still a huge need for investment in

agriculture, fisheries and other rural livelihood options.

Reform within the fisheries and agriculture sectors

offers excellent chances for poverty reduction and

economic development through developing higher

value added activity. Programmes have been formulated

for 2007-2011, aimed at immediate impact in critical

areas of agriculture and fisheries, but these still require

substantial funding.

Provincial and Local Government must urgently develop

and present a common vision about the economic

development of the region. The current situation of high

import levels in Aceh, the weak enabling base in Nias,

and the level of the reconstruction funds being spent on

services and invested is not sustainable. Interventions to

address the long-term economic impacts of the tsunami

and the reconstruction process will need to begin in


Managing the Reconstruction

BRR and partners will need to be realistic in the goals

they set for 2007 and avoid setting targets which may

not be possible to achieve. Victims of the disaster have

repeatedly expressed that realistic deadlines are more

acceptable so that they can better plan their own

futures. The current year showed that the housing

target of 78,000 units in 2006 was not achieved due to

coordination and operational constraints. Continued

and greater cooperation between all partners and the

BRR will hopefully reduce bottlenecks and find ways to

overcome them as a joint effort. The local government

at provincial and district level will need to play an

increasingly important role in the planning and design of

reconstruction projects, but Joint Secretariats are widely

perceived as an appropriate mechanism.

Where commitments were made but unfulfilled. BRR as

leader in the reconstruction process will need to actively

identify areas where progress is not visible and then

recommend a decisive course of action in the interests

of all partners.

Information management is still challenging and the

enormous scale of actors, projects, and assistance

requirements make it incredibly difficult to provide an

accurate and consistent picture of the recovery efforts

to decision-makers and implementers. However, as we

begin 2007 the need to demonstrate real progress and

results becomes more relevant than ever. A shift towards

more results-based monitoring, including qualitative

as well as quantitative information, and effective data

collection on cross-cutting issues is required to help

demonstrate the outcomes and potential longer-term

impacts of reconstruction and rehabilitation. The need

for a beneficiary database as accurate as possible is a

essential to ensure that no victim receives more than its

legitimate entitlement. Gender-related concerns must

be integrated into the reconstruction and rehabilitation

activities and programmes of all agencies operating in

Aceh and Nias. To date, gender disaggregated data of

target beneficiaries is not available which hampers

efforts to ensure systematic gender-sensitive planning,

budgeting and monitoring which reflects the ongoing

need to strengthen information management systems.

BRR must oversee this effort but all international

agencies and NGOs will need to make a conscientious

effort to help create a reliable information system.

The challenge for the coming year for BRR will be

to achieve the right balance between fulfilling the

mandate of enhancing the capacity and capability of

local governments to assume greater coordination and


2006 Progress Report

Looking Ahead 2007

planning role, and the need to demonstrate significant

and measurable progress in the overall reconstruction

program. BRR will need to continue to build the capacity

of its regional offices, strengthening its coordination

function and promoting an area-based collaborative

approach with local government.

The capacity of the BRR project implementation units,

Satker, must be increased as quickly as possible. The last

two years has seen the Satker stretched to the limit with

too many projects and insufficient staff numbers which

directly impacted the timely completion of the task and

drastically affected the quality of the final product, along

with drawing the resources of BRR staff into resolving

the government-funded projects operational issues when

they could have devoted those resources to higher-level

facilitation. A greater number of field inspectors who are

well trained and motivated will be essential to improve

quality standards and meet completion deadlines.

The Scenario in 2007

The effective transition from the relief phase to ensuring

longer-term development outcomes in the recovery

process will be well underway in 2007. Coordination

and open-sharing of information between all partners is

pivotal. The challenge for 2007 will be the coordinated

implementation of policies in a way that seeks to optimise

our delivery, not merely standardise our procedures. As

the programme aims towards sustainable development

goals, the programme becomes more complex and the

division between post-conflict and post-disaster will be

less distinct. Working together and aligning competencies

and comparative advantage of each implementing agency,

and planning together for optimal sharing and sequencing

of work will help support successful recovery of

communities and livelihoods.

The picture that is emerging for 2007 is of complementary

but increasingly clear streams: One continuing to focus

on achievement of reconstruction targets, getting the

houses and infrastructure constructed at community

level, ensuring restoration of basic livelihoods, and

essential community services such as schools. The

second stream will focus on longer-term development,

capitalising on the reconstruction effort in the most

strategic way possible, to create a basis and supporting

infrastructure for economic growth, with the government

and social processes required to support sustainable


A number of NGOs have expressed that they have

already passed the peak of their reconstruction activity

and are looking at some form of exit during 2007.

Others are considering transitional strategies from/to

particular geographical or programme areas. The MDF

and others are keen to look longer-term towards

economic development and are taking keen interest in

an economic development strategy. Donors and partners

are promoting gender, environment, and disaster risk

reduction as cross-cutting themes that must be addressed

for sustainable development. BRR will articulate its

strategy for handover to local government and exit in

2009. Where partners have come together, such as at

the Coordination Forum for Aceh and Nias (CFAN), the

discussion has ranged from how we collectively meet

those targets at the scale required, but also how we are

moving from emergency and recovery towards more

development oriented goals.

Two years on, that the stakeholders show sufficient

confidence in progress so far to debate the longer term

scenario is both a sign of achievement and a sign of the

pace and scale of change that continues to mark this

recovery programme. In 2007 it will be beneficial to

articulate as soon and as clearly as possible what we

collectively want to achieve in terms of development. The

year could be pivotal in setting a longer term agenda, but

equally this will hinge on maintaining the commitment

and momentum that has been in place through 2006 in

overcoming the still considerable challenges of immediate


The most important group in considering the success

and potential of recovery is the community at large. For

the longer-term development scenario to be considered,

articulated and be plausible, the views and voices of the

people cannot be overlooked, and their suggestions and

requests play a critical role in “building back better”.

Experience has shown that when communities have

access to proper information combined with their local

knowledge of the workplace and the living environment,

their suggestions are extremely meaningful.

Economic and social development, to accompany

physical rebuilding, will not only help revitalise a province

devastated by one of the greatest natural disasters ever

known but will also help maintain the existing peace

accord. The coming year will be a successful step on the

path to recovery if there is a combination of a continued

collective rebuilding effort with vital engagement in what

the BRR, implementing and donors partners, the local

government, communities and individuals aim to achieve

in the years to come.

Aceh and nias t wo years after the tsunami



Aceh and nias t wo years after the tsunami
















































Agency for Technical Cooperation and Development (Agence d’Aide à la Coopération Technique Et au Développement)

Asian Development Bank

Australia Indonesia Partnership for Reconstruction and Development

Environmental Impact Assessment (Analisa Mengenai Dampak Lingkungan)

Aceh Monitoring Mission

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

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

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

Australian Agency for International Development

National Coordinating Board for Disaster Management (Badan Koordinasi Nasional Penanggulangan Bencana dan

Penanganan Pengungsi)

National Coordinating Agency for Surveys and Mapping (Badan Koordinasi Survei dan Pemetaan Nasional)

District Environmental Impact Management Agency (Badan Pengendalian Dampak Lingkungan Daerah)

Executing Agency of BRR (Badan Pelaksana)

National Development Planning Board (Badan Perencanaan Pembangunan Nasional)

Agency for the Regional Civil Services (Badan Kepegawaian Daerah)

Agency for Financial Audit (Badan Pemeriksa Keuangan)

Financial and Development Supervisory Agency (Badan Pengawasan Keuangan dan Pembangunan)

National Land Agency (Badan Pertanahan Nasional)

Resettlement Development Assistance (Bantuan Pembangunan Permukiman Kembali)

Bureau of Statistics Indonesia (Biro Pusat Statistik)

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

Coordination Forum for Aceh and Nias

Canadian International Development Agency

Cessation of Hostilities Agreement

Consumer Price Index

Catholic Relief Services

Civil Society Organization

Disarmament Demobilization and Reintegration

UK Department For International Development

Provincial Government management or implementing unit

Issuance of spending authority (Daftar Isian Proyek Anggaran)

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

European Commission

Environmental Impact Assessment

Education Management Information System

Emergency Response and Transitional Recovery

Earthquake and Tsunami Emergency Support Project

European Union

Food and Agriculture Organization

Free Aceh Movement (Gerakan Aceh Merdeka)

Gross Domestic Product

Geographic Information System

Government of Indonesia (Pemerintah Republik Indonesia)

German Cooperation Agency (Gesellschaft fuer Technische Zusammenarbeit)

Indonesia Corruption Watch


2006 Progress Report


Internally Displaced Person


Indonesian Rupiah


International Federation of Red Cross and Red Crescent Societies


International Labor Organization


International Medical Corps.


International Organization for Migration


International Rescue Committee


International Relief and Development


Infrastructure Reconstruction Enabling Program


Japan International Cooperation Agency


Japan International Cooperation System


Kecamatan Development Program


Presidential Decree (Keputusan Presiden)


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


German Development Bank (Kreditanstalt fuer Wiederaufbau)


Corruption, Collusion and Nepotism (Korupsi, Kolusi dan Nepotisme)


Corruption Eradication Commission (Komite Pemberantasan Korupsi)


Logistics Coordination Service


Loan and Deposit Ratio


Micro-Financing Institutions (Lembaga Keuangan Mikro)


lembaga swadaya masyarakat


Multi-Donor Fund (for Aceh and North Sumatra), formerly known as Multi-Donor Trust Fund (MDTF)


Micro Finance Institutions


Memorandum of Understanding


Medecins Sans Frontieres


Indonesian Transparency Society (Masyarkat Transparansi Indonesia)


Nanggroe Aceh Darussalam


Non-Governmental Organization (Lembaga Swadaya Masyarakat)


Nias Islands Stakeholders Meeting


Non-Performing Loan


United Nations Office of the Special Envoy for Tsunami Recovery


Government-Owned Water Enterprises (Perusahaan Daerah Air Minum)

PERDA Local government regulation (Peraturan Daerah, ‘Qanun’ - arabic term )


Presidential Regulation (Peraturan Presiden)


Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang Undang)


Public Health Office


Public Information Centre


The National Electricity Company (Perusahaan Listrik Negara)


Coordination Post (Pos Koordinasi)


Procurement Quality Assurance and Monitoring


Procurement Services Unit


Health Center at Sub-District Level (Pusat Kesehatan Masyarakat)


quality assurance


Restoration of Aceh Land Administration System


Recovery Aceh-Nias Database


Red Cross/Red Crescent


Recommended Daily Allowance


Anti-corruption Unit (Satuan Anti Korupsi)


Labor Force Survey (Survey Tenaga Kerja Nasional)


Work Units (Satuan Kerja)

Aceh and nias t wo years after the tsunami






SIM Centre































Save the Children Fund

Primary School

Swiss Agency for Development and Cooperation

Sea Defence Consultants

Spatial Information and Mapping Centre (Pusat Informasi Spasial dan Pemetaan)

Senior High Schools (Sekolah Lanjutan Tingkat Atas)

Public High School (Sekolah Menengah Atas)

Small to Medium Enterprise (Usaha Kecil Menengah)

Standard Operating Procedure

Support for Poor and Disadvantaged Areas project

Internal Supervision Unit (Satuan Pengawas Internal)

North Sumatra (Sumatera Utara)

Tsunami Evaluation Coalition

Tsunami Early Warning System

Transparency International Indonesia

temporary living centre

Indonesian Military (Tentara Nasional Indonesia)

Tsunami Recovery Impact Assessment and Monitoring System

Temporary Shelter Plan of Action

United Nations (Perserikatan Bangsa-Bangsa)

United Nations Development Programme

United Nations Environment Programme

United Nations High Commissioner for Refugees

United Nations Children’s Fund

United Nations Development Fund for Women

United Nations Information Management Service

Office of the United Nations Recovery Coordinator for Aceh and Nias

Office of the United Nations Recovery Coordinator, Information Analysis Section

Urban Poverty Project

Development Service Unit (Unit Pelayanan Pengembangan)

United States Agency for International Development

World Food Programme

World Health Organisation

World Wildlife Fund for Nature

Center for Local Government Innovation (Yayasan Inovasi Pemerintahan Daerah)


2006 Progress Report








Multi Donor Fund

dana multi donor

Advisory Board

Dewan Pengarah

National Land Agency

Badan Pertanahan Nasional



off budget

di luar anggaran


daerah, kawasan

on budget

dalam anggaran



Oversight Board

Dewan Pengawas

basic commodity



build back better

building codes


capacity building


Chief of Sub-district


civil society

complaints handling

Corruption Eradication



customs, (traditional) law

damage and loss assessment


delivery (of work)

delivery unit


district head

emergency response

escape route


gender equity

government authority

Government Regulation

head of sub-district

internally displaced people

Islamic law

komoditi andalan



membangun menjadi lebih baik

ketentuan-ketentuan tentang



pengembangan kemampuan




masyarakat madani, sipil

Penanganan Keluhan

Komisi Pemberantasan Korupsi

lintas sektoral


penilaian kerusakan dan kerugian

pangkalan data

pelaksanaan (pekerjaan)

satuan kerja



tanggap darurat

jalan untuk menyelamatkan diri


kesetaraan gender

instansi pemerintah

Peraturan Pemerintah (PP)




Procurement Quality

Assurance and Monitoring

Procurement Service Unit

Promoting Gender Equality

in the Rehabilitation and

Reconstruction Process

Public Financial Management

Public Information Centre


Rehabilitation and

Reconstruction Agency for

the Region and Community

of the Province of Aceh

and the Nias Islands in the

Province of North Sumatra

Restoration of Aceh Land

Administration System

settlement (Ach.

administrative division larger

than a village)

settlement, head of


sub-district head

sustainable development

temporary living centres

temporary shelter

Temporary Shelter Plan of


traditional fishing community


transitional housing



Village Chief

village head

Jaminan dan Pemantauan Mutu


Satuan Layanan Pengadaan

Memajukan Kesetaraan Gender

dalam Proses Rehabilitasi dan


Manajemen Keuangan Pemerintah

Pusat Informasi Publik

qanun (arabic term)

Badan Rehabilitasi dan Rekonstruksi

Wilayah dan Kehidupan Masyarakat

Provinsi Nanggroe Aceh Darussalam

dan Kepulauan Nias Provinsi

Sumatera Utara

Pemulihan Sistem Administrasi Tanah

di Aceh


mukim, imuem mukim



pembangunan yang berkelanjutan

tempat tinggal sementara

hunian sementara

Rencana Tindak Hunian Sementara

Ach. panglima laot

perumahan transisi


desa, gampong, kelurahan

Kepala Desa

Ach. keucik

Islamic place of prayer in


Ach. meunasah

Islamic School


Islamic theologian, scholar


joint-land titling

sertifikat tanah gabungan


mata pencaharian

Master Plan

Rencana Induk

Aceh and nias t wo years after the tsunami


Financial Methodological Note

Definitions of Needs



The Damage & Loss Assessment estimated the total cost to replace damages and losses caused by disaster

(replacement value). Total Damages and Losses Aceh and Nias were estimated at USD 4.9 billion, and after

being adjusted for inflation the total is 6 USD. Billion.

Core Minimum Needs are a sub-set of the Damage and Loss Assessment and of the Master Plan. Core

Minimum Needs are defined as (i) full replacement of all public sector damage, (ii) financing of private sector

needs such a housing or agriculture up to a limit as determined in the Master Plan, (iii) partial financing of

environmental damage, which can only be addressed to very limited degree by external interventions, and (iv)

inflation adjustment given the recent price trends.

Key Parameters








Many projects will take more than one year to complete or less than one year. The database of funds from

donors and NGOs contains single and multi year projects.

On- and Off-budget. The tables in this report covered both On- and Off-budget data. Donors’ funds

channeled through the Government are defined as “On budget”. “Off budget” funds refer to projects funded

and implemented external to the Government.

Donor disbursements are defined as those funds that have been spent on projects by donors. This

information is directly collected from the major donors.

NGO disbursements refer to the funds that had been spent on projects directly by NGOs or an executing

agency. This data is gathered from direct sources for the top 20 NGOs and Recovery Aceh Nias (RAN)

database for smaller NGOs.

GOI disbursement are Central Government disbursements, consisting of BRR funds. This data has been

provided by BRR’s Finance Unit

Double Counting. Funding figures are vulnerable to double counting due to the complexity of aid funds

channeled, thus the funds are calculated based on the executing agency rather than the financing source. This

may lead to underestimation of bilateral/multilateral donor funds, and an overestimation of NGO funds, or vice


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

2 year Progress data




houses and





houses built

(projected year



houses built


(projected year



houses built


(projected year


No. of land



# of land



# of land



Aceh Barat 3,187 4,961 4,473 488 100 100 12,984

Aceh Barat Daya 52 772 465 307

Aceh Besar 2,863 13,429 11,100 2,329 2,516 5,088 35,388

Aceh Jaya 4,721 3,811 3,609 202 10 107 9,248

Aceh Selatan 0 283 0 283

Aceh Singkil 0 165 20 145

Aceh Tamiang 0 0 0 0

Aceh Tengah 0 0 0 0

Aceh Tenggara 0 0 0 0

Aceh Timur 0 423 52 371

Aceh Utara 271 2,826 2,237 589 300 652 5,608

Banda Aceh 1,785 11,703 7,038 4,665 4,238 9,008 37,195

Bener Meriah 0 0 0 0

Bireuen 61 4,126 2,811 1,315 536 18,024

Gayo Lues 0 0 0 0

Langsa 0 0 0 0

Lhokseumawe 0 578 370 208 150 750 2,494

Nagan Raya 419 2,028 1,333 695 5 223 2,540

Pidie 294 5,049 3,815 1,234 384 926 10,810

Sabang 254 143 143 0

Simeulue 730 1,385 1,377 8

ACEH TOTAL 14,637 51,682 38,843 12,839 7,703 17,390 134,291

Nias 293 4,012 1,225 2,787

Nias Selatan 56 1,429 161 1,268

NIAS TOTAL 349 5,441 1,386 4,055 0 0 0

GRAND TOTAL 14,986 57,123 40,229 16,894 7,703 17,390 134,291

Source BRR Nov 2006,

BRR Nias Nov 2006,

IFRC TS Update Nov


Comments Actual figures

for November 2006

BRR Nov 2006

and BRR Nias Nov


Total of on + off


BRR Nov 2006

and BRR Nias Nov


Off-budget: funded/

built by NGOs/IAs

BRR Nov 2006

and BRR Nias Nov


On-budget: houses

funded through GoI

BRR and BPN Nov


BRR and BPN Nov


BRR and BPN Nov


Aceh and nias t wo years after the tsunami


2 year Progress data




built /



built /



built /



built /


Pustu built /



health posts


Total health facilities built /


All health


Hosp, Pusk,


Aceh Barat 26 1 10 6 5 48 16

Aceh Barat Daya 0 0 0

Aceh Besar 8 33 8 3 15 67 11

Aceh Jaya 2 11 9 19 4 45 28

Aceh Selatan

Aceh Singkil

Aceh Tamiang 0

Aceh Tengah

Aceh Tenggara

Aceh Timur 1 1 0

Aceh Utara 11 5 6 22 5

Banda Aceh 1 3 0 4 7 2 17 14

Bener Meriah 2 2 3 7 5

Bireuen 8 5 7 10 30 12

Gayo Lues


Lhokseumawe 0 0 3 3 0

Nagan Raya 0 0 0 0 2 2 0

Pidie 34 6 16 7 63 22

Sabang 0 0 0 0

Simeulue 0 0 0 0 0

ACEH TOTAL 37 3 100 49 61 55 305 113

Nias 0 10 8 18 18

Nias Selatan 1 incl. in Nias incl. in Nias 1 incl. in Nias

NIAS TOTAL 0 1 0 10 8 0 19 18

GRAND TOTAL 37 4 100 59 69 55 324 131

Source BRR November 2006

Comments Posyandu is an

integrated healthpost

at sub-village


Polindes is a

village birthing


Puskesmas is a

sub-district health


Pustu is a village

health centre

Satellite health

posts are

auxiliary health



2006 Progress Report

2 year Progress data



Number of



(SD) built /


Number of

junior high


(SMP) built /



of senior

high schools

(SMA) built /


Number of


(TK) built /


Total number

of permanent

schools built /


Number of


schools built

Number of



Aceh Barat 33 19 3 1 56 33 1,120

Aceh Barat Daya 1 15 1 0 17 0 5

Aceh Besar 17 40 1 22 80 33 1,246

Aceh Jaya 17 5 2 7 31 42 529

Aceh Selatan 0 28 1 0 29 0 10

Aceh Singkil 0 20 0 0 20 0

Aceh Tamiang 0 22 1 0 23 0 102

Aceh Tengah 0 17 0 0 17 0

Aceh Tenggara 0 30 0 0 30 0

Aceh Timur 4 23 0 0 27 0 8

Aceh Utara 1 33 0 4 38 0 138

Banda Aceh 21 11 3 5 40 15 996

Bener Meriah 1 16 1 0 18 0

Bireuen 3 32 5 2 42 0 128

Gayo Lues 2 7 0 0 9 0

Langsa 0 9 0 0 9 0

Lhokseumawe 0 0 0 0 0 0 65

Nagan Raya 9 19 3 5 36 4 203

Pidie 9 49 7 0 65 0 565

Sabang 4 6 0 0 10 0 9

Simeulue 10 15 1 0 26 38

ACEH TOTAL 132 416 29 46 623 165 5,124

Nias 86 28 8 2 124 214 260

Nias Selatan incl. in Nias incl. in Nias incl. in Nias incl. in Nias incl. in Nias incl. in Nias 25

NIAS TOTAL 86 28 8 2 124 214 285

GRAND TOTAL 218 444 37 48 747 379 5,409

Source BRR October 2006 BRR RAN Oct 2006

Aceh and nias t wo years after the tsunami


2 year Progress data




protection built



dykes built














/ reclaimed

with rubble




for future






into condition

suitable for

recycling (m3)

Aceh Barat 2,005 750 362 50 119,683.84 17.90 4,031.09 252.89

Aceh Barat Daya 432 0 0

Aceh Besar 2,313 2,165 600 573 10,499.00 2.00

Aceh Jaya 2,327 0 450 355 446,187.00 10.90

Aceh Selatan 3,213 0 0

Aceh Singkil 2,196 1,110 1,460 2,125

Aceh Tamiang 0 0 16,095 2,550

Aceh Tengah 0 0 0

Aceh Tenggara 0 0 0

Aceh Timur 1,460 1,350 10,454 3,050

Aceh Utara 480 0 800 634

Banda Aceh 11,615 14,216 300 100 457,452.00 19.19 12,954.00 1,177.00

Bener Meriah 0 0 0

Bireuen 2,662 0 350 295

Gayo Lues 0 0 0

Langsa 0 3,500 300 200

Lhokseumawe 1,450 0 309 300

Nagan Raya 0 0 0 6,299.14 1.99 447.89 28.09

Pidie 2,630 930 600 506 20,186.00 0.40 9.00

Sabang 0 0 0

Simeulue 450 0 3,057 1,200

ACEH TOTAL 33,233 24,021 35,137 11,938 1,060,307 52 17,442 1,458

Nias 0 0 0 0

Nias Selatan 0 0 0 0

NIAS TOTAL 0 0 0 0 0 0 0 0

GRAND TOTAL 33,233 24,021 35,137 11,938 1,060,307 52 17,442 1,458

Source BRR Oct 2006 BRR Oct 2006 BRR 2005 BRR Nov


Comments Includes all types: biofencing,

seawalls, quay

walls and breakwaters



2006 Progress Report


2 year Progress data



and minor

roads built

/ repaired



& national

roads built

/ repaired





Number of

bridges built

/ repaired






built / under



built / under



built / under


Aceh Barat 296 49 345 45 1 0 0

Aceh Barat Daya 6 6 0 1 0 0

Aceh Besar 104 17 121 16 1 1 0 0

Aceh Jaya 122 74 196 33 0 0 1

Aceh Selatan 10 10 0 1 1 0 0

Aceh Singkil 24 19 44 0 2 0 1 0

Aceh Tamiang 5 5 0 0 0 0

Aceh Tengah 14 3 17 0 0 0 0

Aceh Tenggara 5 5 0 0 0 0

Aceh Timur 13 13 0 0 0 0

Aceh Utara 18 18 0 0 0 0

Banda Aceh 132 132 0 1 0 0 0

Bener Meriah 6 6 0 0 1 0

Bireuen 37 37 21 0 0 0

Gayo Lues 7 7 0 0 0 0

Langsa 10 10 0 0 0 0

Lhokseumawe 18 18 0 0 0 0

Nagan Raya 21 21 0 0 1 0

Pidie 110 110 3 0 0 0

Sabang 13 10 23 0 1 0 1 0

Simeulue 24 35 59 3 1 0 1 0

ACEH TOTAL 994 207 1,201 121 7 4 5 1

Nias 234 75 309 22 2 1 0

Nias Selatan incl. in nias incl. in nias incl. in nias 15 1 1 0

NIAS TOTAL 234 75 309 37 0 3 2 0

GRAND TOTAL 1,228 282 1,510 158 7 7 7 1

Source BRR Nov 2006,

BRR Nias Nov


Comments Roads by district

includes district,

subdistrict, village

and local roads.


2006, BRR

Nias Nov



2006, BRR

Nias Nov


BRR Oct 2006

and BRR Nias

Nov 2006

BRR Oct 2006 BRR Oct 2006, Dinas Perhubungan (Provincial Transportation

Office) 2006

1 ferry terminal in

aceh barat and 1

in aceh jaya are

under design

Further 5 are in


Further 2 in design

Aceh and nias t wo years after the tsunami


2 year Progress data




land damaged







damaged (ha)

Area of


restored (ha)

Fishing vessels

damaged /


Number of Fishing

Vessel Replaced


Aceh Barat 3,016 7,443 285 40 662 424

Aceh Barat Daya 2,570 984 10 15 108 76

Aceh Besar 6,912 6,243 835 573 1,330 605

Aceh Jaya 3,255 8,544 440 300 455 246

Aceh Selatan 736 150 108 12 409 20

Aceh Singkil 0 150 0 0 659 247

Aceh Tamiang 0 0 0 140 1,577 20

Aceh Tengah 0

Aceh Tenggara 0

Aceh Timur 119 428 2,384 400 561 150

Aceh Utara 1,026 2,446 1,443 2,023 952 242

Banda Aceh 283 220 293 318 208

Bener Meriah 0

Bireuen 3,100 7,875 2,390 877 1,393 222

Gayo Lues 0

Langsa 0 0 0 0 524 30

Lhokseumawe 44 0 19 144 783 145

Nagan Raya 28,190 3,800 480 60 512 179

Pidie 24,901 7,542 18,979 1,913 1,321 830

Sabang 0 0 0 10 356 216

Simeulue 0 2,942 0 0 846 42

ACEH TOTAL 73,869 48,830 27,593 6,800 12,766 3,902

Nias N/A 1,510 0 0 917 278

Nias Selatan N/A incl. in Nias figure 0 0 145 240

NIAS TOTAL 0 1,510 0 0 1,062 518

GRAND TOTAL 73,869 50,340 27,593 6,800 13,828 4,420

Source BRR 2005 BRR Nov 2006 BRR 2005 BRR, FAO, ADB ETESP

Fisheries Nov 2006

FAO September 2005 BRR Nov 2006

Comments Note these figures not directly comparable. Total Boats

lost was 4,717(source: One Year After the Tsunami report),

comparable with boats replaced. Figures for repaired boats

not available at Nov2006


2006 Progress Report

Progress Tables

2 year Progress data



Urban Male

Labour Force Participation Rate (%) Number of loans

(< IDR 5 million)


Female Rural Male



to micro business


% population under

poverty line (Based

on living costs for

each city.)

Monthly average

household income


Aceh Barat 68.9 28.4 74.1 51.5 4,806 42.0 1,260,110

Aceh Barat Daya 71.8 38.6 72.9 47.2 0 60.1 972,159

Aceh Besar 65.5 29.6 69.3 37.1 13,054 30.1 1,441,680

Aceh Jaya 77.7 50.7 73.1 56.3 5,843 45.2 1,019,732

Aceh Selatan 69.8 29.6 71.1 45.5 0 60.6 1,019,325

Aceh Singkil 68.2 31.6 71.2 38.5 413 65.9 1,109,009

Aceh Tamiang 69.2 25.2 72.8 33.4 0 46.5 1,228,021

Aceh Tengah 69.1 45.7 76.9 69.7 0 42.8 1,393,238

Aceh Tenggara 69.3 50.1 68.6 58.8 18 85.7 1,078,036

Aceh Timur 63.9 26.1 71.4 42.5 1,843 62.1 1,141,513

Aceh Utara 67.3 26.3 68.8 44.2 2,575 46.0 903,864

Banda Aceh 65.6 28.2 7,594 2.9 2,562,525

Bener Meriah 71.1 52.1 76.6 67.3 0 45.8 1,080,404

Bireuen 68.9 36.3 69.1 47.2 1,680 46.9 1,066,921

Gayo Lues 63.6 32.2 72.4 60.7 NA 86.3 1,283,354

Langsa 65.6 25.7 70.6 28.9 NA 43.7 1,297,032

Lhokseumawe 65.6 26.3 63.1 30.7 1,235 33.1 1,458,058

Nagan Raya 75.0 52.8 76.2 54.8 136 60.2 1,057,446

Pidie 67.5 39.1 69.6 50.8 3,547 57.5 1,129,907

Sabang 73.4 40.8 77.5 40.2 3 15.9 1,471,203

Simeulue 70.6 36.6 70.3 42.3 516 78.2 1,149,718

ACEH TOTAL 68.9 35.8 68.4 45.1 43,263 49.8 1,206,744


Nias Selatan

NIAS TOTAL 0 0 0 0 0 0.0 0

GRAND TOTAL 68.9 35.8 68.4 45.1 43,263 49.8 1,206,744

Source BPS SPAN 2005 BRR Nov 2006 BPS Pendataan Sosial Ekonomi,

Social-Economy Recording 2005

(Corrected Aug 2006)

Source: BPS _SUSENAS 2005,

February 2006

Comments LFPR shows the percentage of the population age 15 and above who are active economically in the country/

region. LFPR is the ratio of labor force to the total population in working age ( >15 )

Beneficiaries of loans only, not grantbased


In Banda Aceh = individual income

less than IDR180,000/month. For

other cities lower.

Proxied by total expenditure on food

and non-food at household level

Aceh and nias t wo years after the tsunami



Inflation Rate based on Consumer Price Index (CPI) change in Banda Aceh

2 year Progress data

Year Variable Jan Feb Mar Aprl Mei June Jul Agt Sep Oct Nov Dec Total

2005 CPI 124.9 123.3 128.2 133.9 133.5 132.7 134.1 138.4 138.6 155.8 159.5 164.7

Inflation (%) 7.0 -1.2 3.9 4.4 -0.2 -0.5 1.0 3.2 0.1 12.4 2.3 3.2 41.1

2006 CPI 168.4 171.7 166.7 164.2 169.4 170.9 172.4 174.0 175.5 178.2

Inflation (%) 2.2 1.9 -2.9 -1.4 3.1 0.9 0.8 0.9 0.8 1.5 (8.1)

Source: BPS (Nov, 2006)

Banda Aceh only


2006 Progress Report

2 year Progress data


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 t wo years after the tsunami


More magazines by this user
Similar magazines