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Indonesia

Aceh and North Sumatra (Indonesia) - Tsunami reconstruction strategy 17 Mar 2005

Introduction

Overview

The provinces of Aceh and North Sumatra (on the island of Sumatra) in Indonesia experienced the greatest impact from the Indian Ocean earthquake and tsunami on December 26, 2004:

Dead: More than 200,000

Displaced: 430,000

Most affected sectors: housing, commerce, agriculture, fisheries, transport vehicles, and services.

Significantly affected areas: infrastructure, social sector, government administration.

Environmental impact: Approximately 300 km of coastline have been severely damaged up to 6 km inland; numerous coastal landscapes and habitats have completely vanished.

The tragedy will have a disproportionate impact on the poor, particularly women and girls. Some 78 percent of total damage and losses accrued to the private sector, with the remainder borne by the public sector.

Coordination of rehabilitation and reconstruction

The Government of Indonesia faces several challenges as it begins to plan Aceh's rehabilitation and reconstruction:

  • the sheer magnitude of the destruction;
  • the loss of up to 80 percent of local government personnel;
  • the need to coordinate a large number of foreign organizations; and
  • the lack of progress in peace talks.

Despite this uncertainty, the Government of Indonesia intends to take a leadership role in coordinating the reconstruction of Aceh and North Sumatra, and to maintain full accountability and transparency in the use of donor funds.

The Indonesian government has asked the World Bank and the Asian Development Bank to coordinate reconstruction. It will establish an office in Banda Aceh to oversee rehabilitation and reconstruction, and to coordinate with the local administration, non-governmental organizations (NGOs), bilateral and multilateral donors, multi-donor trust funds, and concessionary loans.

Conflict and security of aid workers

After the tsunami, Acehnese separatist forces and the Indonesian army informally ceased firing, but the respite was only brief. After recent peace talks in Finland failed to bring about a formal truce, shootings and violent encounters have resumed. Long-term peace prospects do not look promising.

While no incidents have involved international aid workers yet, the risk of attacks needs to be carefully monitored. The Indonesian government still maintains the status of "civil emergency" for all of Aceh. The Office for the Coordination of Humanitarian Affairs and the Government of Indonesia are asking relief workers in Aceh to register with them to help ensure their personal security.

Reconstruction programming strategy

International commitments

The international community has pledged more than US$6 billion for relief and rehabilitation work related to the tsunami, of which Canada is contributing $425 million. Canada has designated $160 million for reconstruction efforts for all affected countries over four years.

Canada's priorities

Short-term: relief for the people of Aceh and North Sumatra.

Medium- to long-term: meaningful reconstruction assistance that is coordinated, demand-driven and harmonized, harnessing Canadian capacities.

The reconstruction program will be anchored into the long-running Canadian International Development Agency (CIDA) bilateral program, which focusses on three key areas:

  • improved governance at the local level;
  • growth of small- and medium-sized businesses;
  • equitable access to, and sustainable use of, natural resources.

After four years, the reconstruction program will dovetail into the development program. It will balance CIDA-specific bilateral programming and more harmonized approaches in cooperation with trusted donors. Reconstruction activities should be gender-sensitive and non-partisan, mindful of opportunities to support lasting peace. CIDA's reconstruction strategy

Ultimately, CIDA's reconstruction program in Aceh and North Sumatra will help survivors rebuild their communities and re-establish their livelihoods. In line with the Government of Indonesia's reconstruction strategy, CIDA will focus on:

  • rebuilding and strengthening the system of local governance
  • replacing the lost capacity of local governments and strengthening them to deliver pro-poor public services; and
  • rebuilding the capacity of local civil society organizations, and supporting community empowerment.
  • restoring livelihoods (enterprise assistance and restoration of natural resource base)
  • restoring sustainable livelihoods, including in the agriculture, forestry and fisheries sectors (i.e., capital investment, micro-credit, market development); and
  • rehabilitating the environment that supports restoration of sustainable livelihoods.

Peacebuilding: CIDA will use peace and conflict impact assessment tools to mitigate harmful effects and to identify opportunities to support reconciliation and peace processes.

Coordination: CIDA will work with Foreign Affairs Canada's Human Security Program to identify potential opportunities.

Gender equality: CIDA will ensure that women and girls are represented in decision-making, planning, design, implementation, and monitoring of reconstruction.

Implementation strategy

CIDA has established a presence in Banda Aceh and plans to build on its existing program. As an immediate measure, it will amend existing projects as appropriate in such areas as good governance and decentralization, environment, and small- and medium-size enterprises , to encompass Aceh and North Sumatra.

CIDA can also leverage existing successful projects to design new initiatives, such as coordination of reconstruction activities, NGO capacity building, or community development through religious and cultural leaders.

CIDA also expects to partner with major international financial institutions or organizations such as the United Nations Development Programme, World Bank, and Asia Development Bank on joint initiatives.

The program will take place over four years (2005/06 to 2008/09). Given that the Government of Indonesia's draft strategy goes beyond four years for reconstruction, CIDA could integrate reconstruction efforts into its country development programming framework for Indonesia, starting in 2009/10.

A role for Canadian partners

CIDA will seek opportunities and entry points to make the best use of Canadian expertise. It will work with partners to ensure that communications respond to the needs and expectations of Canadians, providing a fair and balanced view of the situation.

CIDA's Asia Branch will manage the overall tsunami response, providing potential partners with a single point of contact. International Trade Canada has the lead role in communicating opportunities for involvement in reconstruction projects funded by international financial institutions and United Nations agencies to the private sector.

Matching funds

NGOs will be able to use matching funds for rehabilitation and reconstruction. These projects must be consistent with the Indonesian government's plans, priorities, and coordination requirements. Precise amounts of available funds, as well as criteria, will be announced as soon as possible.

Other possibilities for projects

CIDA's reconstruction program in Aceh and North Sumatra will provide opportunities to incorporate the Canada Corps. In addition, CIDA, the Federation of Canadian Municipalities, and provincial representatives have begun to identify possible projects for further development.