Recovery Programme

The rehabilitation and reconstruction of Aceh and the Nias Islands (2005-09) has been an unprecedented challenge.

The destruction of property and loss of life caused by the December 2004 tsunami, followed by the earthquake that devastated the islands of Nias prompted one of the largest recovery programmes in recorded history.

This recovery programme has involved rebuilding the lives of those who survived the tragedy, and this assistance to the private sector has been the first and most immediate challenge faced. An estimated 78 percent of the devastation caused by these natural disasters directly affected private property and, consequently, the capacity of the affected communities to sustain a livelihood.

With around 22 percent of the damage directly affecting the public sector, the recovery programme also has involved the reestablishment of a functioning local government, in particular in Aceh. Whereas in Nias, a part of North Sumatra, the affect on the provincial government was isolated, enabling the government on the mainland to participate in the reestablishment of essential services for the island communities.

Aceh, on the other hand, after decades of civil conflict, the effect of the tsunami destroyed what little remained of a coherent and effective local government.

In this context, the scope of the recovery programme has encompassed both the private as well as the public sector. Now, three years on with the focus on the private sector nearing completion, with significant progress within the public sector, the enabling and strengthening of the local governments is the concluding phase of BRR’s four-year commission.

Strategic Approach

The coordination and implementation of the recovery of Aceh and Nias has been a collective effort involving the Indonesian government, with BRR as the lead coordinator, international and national NGOs, and bi- and multi-lateral organisations.

These participants have all provided significant input in terms of funding, operations and general know-how such that the approach to the recovery, while imbued with a range of different perspectives and methodologies, has been a combined and well-integrated effort.
The approach adopted has been to coordinate as well as possible the output of the hundreds of organisations that have assembled in Aceh-Nias and undertaken more than 12,000 projects, and to ensure an appropriate outcome through comprehensive monitoring and evaluation and, where required, the completion of any remaining gaps.

This approach has been enhanced through 2007 by an increased representation of BRR and other government agencies in the tsunami-affected regions. BRR's regional programme, in collaboration with local government departments, through the establishment of joint secretariats in the regions, has provided a first-hand evaluation of the remaining needs of beneficiaries and development gaps.

More than this, it has provided a collaborative working and planning environment where a division of short and long-term projects have been appropriately matched against all government actors and national and international NGOs, opening the way for a more comprehensive and integrated plan for the completion of the rehabilitation and reconstruction phase, and the structuring of redevelopment programmes for the future.

In addition, underlying this approach has been the strategy to concentrate initially on the private sector whose needs clearly outweighed those of the public sector as a result of the disasters and, importantly, whose needs had to be substantially met before local governments could begin to resume the coordination and delivery of public services. This strategic approach also was designed to support pro-poor economic development.

Private Sector

The impact of the natural disasters on local communities was devastating. A total of 20 districts/municipalities, 150 sub-districts and 1,500 villages were destroyed, and initial damage and loss assessments estimated that rebuilding the physical, social and human capital of these communities would take years. Now, three years on, substantial results have been achieved.

Housing and Settlements

The relocation and reconstruction of new homes has exceeded 100,000 - an impressive achievement especially when considering issues of logistics, tendering processes, and the procurement, resurveying and title (re)issuing of land, which thus far has involved more than 8 million square metres. These achievements, however, have not been without challenges.

The natural difficulties surrounding the collection of accurate data of beneficiaries has been exacerbated by a lack of data continuity between different government and non-government agencies. Over time, this has resulted in some inequitable outcomes, especially for those beneficiaries who require housing rehabilitation rather than reconstruction. Moreover, it has provided opportunity for some unscrupulous elements within the recovery programme.

In addition, the decision not to build temporary shelters, and move directly from emergency facilities to permanent housing during the early periods of the recovery, resulted in beneficiaries remaining in sub-standard (emergency) living conditions for extended periods of time.
In part response to these challenges and to expedite reconstruction targets, the housing programme initiated a number of important and innovative processes, the outcome of which have had broader implications on community development.

The urgency of re-establishing communities in areas without spatial planning was a serious threat to the environment - its natural resources and disaster mitigation. In an effort to overcome this treat and to expedite the reestablishment of communities, a community-led land mapping programme was established where communities, assisted by specialists, agreed upon land boundaries and developed their own land maps through a process of Community Driven Adjudication. This meant that construction of housing and public infrastructure could commence and not be delayed by the process of official land surveying and the issuing of land titles.

In addition, the housing programme, in collaboration with the National Land Agency (BPN), has re-instigated joint-land titling - a practice acknowledged by law but commonly overlooked by local government administrators, and one that provides essential support for single mothers, especially in post-disaster regions where the male line dominates property ownership.

With the near completion and final closure of housing requirements, it is essential that during the remaining period of the recovery programme, attention is directed towards ensuring that the quality of the all houses provided is in accordance with the standards and quality assurance stipulated by the government.

Livelihood Development

The recovery of livelihoods has focused on micro-economic development with agricultural and fishing enterprises being the benchmark for rural development while small-to-medium businesses the centre of urban development.

Agriculture

The Livelihood Connection Centres, which provide farmers with access to information, technology and extension services, and also link farmers to markets and micro-finance services, have been established in districts throughout the affected regions. These centres are being interconnected to each other and to similar centres at the provincial level in an effort to create community clusters and to enhance local-government services to the farming community.

Such initiatives enable farmers to utilise other areas of the agricultural recovery programme where otherwise access or programme knowledge is limited. Some 14,000 units of agricultural equipment and machinery have been made available to the farming sector, and more than 13,000 hectares of agro-inputs are in development. In addition, 17 seed centres have been established at both the provincial and district levels to develop quality-certified seed and planting stock to enhance crops and provide a contingency against the treat of disease.

Animal Husbandry

The rehabilitation of livestock in the disaster-affected regions has progressed rapidly through the assistance of restocking programmes. More than 30,000 head of cattle have been distributed and vaccinated, with a focus on the development of breeding farms for livestock in order to increase the quality and quantity of ruminants. These restocking programmes have been supported by the establishment of district-wide animal-health centres, laboratories for veterinary research, and the construction of abattoirs and markets.

With the recovery of livestock farming well advanced, in 2007 many small and innovative livestock programmes were initiated. These small programmes are focused on provided isolated communities with income opportunity. A goat farming project, for example, now established in several districts, and expanding to others, provides unemployed women/families each with 5 goats, and partnerships are formed where neighbouring communities who own small market gardens provide feed for the goats. In return, the goat owners provide the market gardeners with manure - a cycle that is both sustainable and rewarding.

Fishing

Nearly 15,000 hectares of fish-ponds have been re-established, a significant achievement considering the extent of damage caused by the tsunami waves to these coastal non-reinforced land-based constructions. With the rapid development of these brackish fish ponds, the potential damage to the natural environment, including sea-bed and mangrove forests, remains a challenge.
The provision of fishing boats for shallow and, to a lesser extent, deep-sea fishing, has exceeded initial damage assessments. A total of more than 4,000 boats, in particular motorised medium-sized fishing boats, have been delivered to communities living along the coastal regions affected by the tsunami. In addition, basic infrastructure and equipment have been provided, including: nets and trapping devices; landing, unloading and docking bays, ice plants and cold storage, and renovated wholesale markets.

Notwithstanding these achievements, the recovery of the fishing industry has been struggling to re-establish the social and public networks and institutions that are so critical to its operations. More than 20 percent of the lives lost due to the disasters were from fishing villages scattered along the west and north-east coasts of Aceh and parts of North Sumatra. As an industry that has developed over centuries through accumulated knowledge of its elders - the Panglima Laot - the recovery of the fishing community has required more than just the replacement of its assets.
To this end, during 2007 the recovery programme launched several important and innovative initiatives. In collaboration with local government departments and traditional fishing communities and their institutions, programmes are now in place to establish fishing-community clusters to produce the volume and quality required by both local and export markets.

In addition, a mapping project was launched to assist the fishing community in identifying potential sea-bed hazards like submerged rocks, deep reefs, sea mounts and sharp rocky pinnacles - hazards that could snag fishing nets and cause extensive damage. This project, which recently has been expanded, focuses on the recovery of local knowledge, and the protection and management of local natural resources.

With limited prospects for establishing an industrial-economic base in Aceh and Nias, and with the majority of the population of these regions dependent on natural-resource based livelihoods, the recovery of the agricultural and fishing sectors remains essential to the sustainability of economic growth and for food security for the future.

Small Business

The development of micro-financing institutions, where some 400 facilities have been established, has been and remains the hallmark of economic and business recovery, with specialised training provided to around 750 managers and support staff of these institutions. The ever present challenge in structuring micro-finance programmes is risk assessment and the provision of appropriate loans, and this challenge has been exacerbated within the recovery context due to a lack of community discernment between grants and loans.

In an effort to assist small-to-medium community enterprises, well over 100,000 people have received grants for the reestablishment of productive assets. In addition, nearly 50,000 people have received skill-development training, aimed at reducing the rising unemployment rate and to strengthen the capacity of small-to-medium enterprises. This combination of start-up grants, the establishment of micro-financing services, and the provision of technical training is providing communities with a basis for establishing and sustaining a viable livelihood.

In addition, through 2007 there has been an increase in the establishment of small-to-medium enterprise support services. The Investment Outreach Office (IOO), which provides information on investment opportunities, mediating between investors/industries and communities/small enterprises, increasingly is identifying, developing and realising the economic potential of the regions. This initiative, in combination with a product identity and branding scheme, is developing strategies for the exploitation of the vast natural resources found across these regions.

In support of these efforts, a one-stop-shop for business registration has been established to provide more efficient and effective registration services for new and expanding enterprises in the regions. This facility has consolidated thirteen registration processes under one roof.
The remaining challenge in the development of community-based enterprises is the degree to which new and expanding businesses are designed to provide equal opportunity and not to cause an increase in the degradation of natural resources.

Public Sector

From the outset of the recovery programme, the disarray of local-government institutions and services created a potentially difficult situation where the engagement of local actors in the planning and implementation of programmes was limited. The central government’s decision to emphasise a strategy of community-driven development for Aceh-Nias was well devised, if not an imperative, in this respect, and BRR’s decision to focus, initially, on the private sector meant that the basis of the recovery remained a bottom-up rather than a top-down approach. Now, three years on, with significant achievements in the public sector, the provincial and district governments, increasingly, are adopting a lead role in the rehabilitation and reconstruction programme.

Institutional Development

During the past three years more than 1,000 offices have been rehabilitated or reconstructed, including village and sub-district offices, courts and a range of other essential administrative buildings. In addition, recruitment programmes have been initiated and over time more than 20,000 public servants have received some form of training. Following on from this training, operational and procedural guidelines have been prepared and distributed to the various administrative institutions and their departments.

In Aceh, following the issuance of the Law on Governing Aceh (UUPA) which concerns the special autonomy for the region, additional assistance has been provided to enhance the capacity of legislators and provincial planning committees. Some 2,000 facilitators and experts have been engaged during the past two years to assist in the development of local regulations (qanun) and strategic planning documentation. A total of 4 regulations were set in law by the end of 2007 with numerous others drafted and awaiting community and government consensus, and some 83 documents concerning local government planning proposals were released.

At the same time, some 300 local organisations have received direct support with the aim to strengthen their general participation in community affairs and, where appropriate, to support the establishment of a balanced and well-represented formulation of provincial regulations and development planning for the regions.

Education and Health

A rapid response to the reestablishment of education facilities resulted in 216 temporary schools being built during the initial phase of the recovery programme. It was critical to provide children with a degree of normalisation following the horrendous events caused by the disasters and, due to the treat of a generation without education, the reestablishment of schools has continued with nearly 900 new facilities being completed at the end of 2007. Each of these educational facilities have been furnished with equipment, and over 1 million books have been distributed.

In addition, more than 23,000 teachers and technical personnel have received training during the past two years in an effort to ensure that the extensive redevelopment, if not in some cases oversupply, of educational facilities is not deprived of a quality pedagogic capacity. Moreover, to compensate for the potential loss of a generation capable of moving into management and leadership roles in the future, nearly 35,000 scholarships and fellowships have been awarded to the regions’ most capable young students and teachers.

Similarly, the response to health services was rapid and substantial. The pre-existing condition of health services in the regions was extremely poor, and following the disasters this situation was exacerbated by the threat of communicable disease and a significant increase in community health needs.

In response, some 55 satellite health posts were established in and around the affected districts supported by 9 mobile clinics with some 350 physicians and 500 nurses deployed. Over time, these facilities were replaced with more permanent community health centres (Puskesmas), village polyclinics, and health support centres which, by the end of 2007, totalled nearly 400 units spread out across the regions.

By the end of 2007, the major achievements within the health sector included the construction of 18 hospitals supported by the establishment of 30 health agencies and health-educational institutions, and 2 laboratories and 14 pharmaceutical storage complexes.

With these significant achievements in the education and health sectors, the challenge now facing the community and its local administrators concerns the degree to which these services will be utilised effectively and, in turn, the degree to which the local government can provide and sustain maintenance. These two challenges are interdependent, while it is the responsibility of the governments to provide adequate education and health facilities, the continuation of such services can only be guaranteed through responsive and supportive community interaction.

Infrastructure

The infrastructure programme, like other sectors, has faced numerous cross-sector issues, affecting both the pace of its implementation and its medium-to-long term sustainability. Of particular importance has been the impact of medium-to-large infrastructure redevelopment on the environment, and the need to incorporate disaster-risk reduction spatial and demographic planning.

The physical and social infrastructure programme has involved several different phases; the recovery of immediate and urgent structural needs in order that other recovery programmes could commence; the rehabilitation and reconstruction of essential public services; and the design and preparation of large-scale redevelopment programmes.

The rehabilitation and reconstruction of community, district and provincial roads and bridges was an initial priority for the government, and once access to remote and heavily affected disaster areas was overcome, the process of rehabilitation and reconstruction of roads began, and by the end of 2007, nearly 2,000 kilometres of roads and 230 bridges were completed. In addition, the redevelopment of national highways gained momentum during 2007 and over 300 kilometres have now been completed with the preparations for further development well underway.

Similarly, electricity was a critical service from the outset of the recovery, and during the initial phase low-to-medium voltage lines were reconnected across vast areas of the affected districts. The subsequent increase in energy requirements was addressed through the provision of 1,338 solar- and 12 diesel-powered generators for remote areas, and 8 micro hydro-powered electrical plants were built including 427 electrical distribution sub-stations.

While significant progress has been made, the demand for electricity continues to grow, coinciding with the developments in the recovery programme, and to meet this increasing demand medium-to-long term plans are being development through collaboration with the provincial and district governments.

The supply of clean water also remains a challenge for the infrastructure programme, despite the significant progress made within this sector. As wells and other natural reserves were inundated by seawater and sediment deposits, it has been necessary to distribute clean water manually by trucks or through the installation of domestic water treatment plants. By the end of 2007, over 1,000 small-to-large water treatment plants were installed, 60 small reservoirs constructed, and some 244 kilometres of drainage systems repaired or rebuilt.

The hallmark of the progress achieved within the infrastructure sector centres on transportation. With the rapid rehabilitation and reconstruction of 11 air-landing facilities and 18 sea-docking facilities, the infrastructure programme has enabled the recovery programme to address issues of logistics, and has opened the way for the regions’ social and economic development.

Beginning in 2007, as a part of the medium-to-long term infrastructure programme, assistance has been provided through the Infrastructure Reconstruction Enabling Program (IREP). This programme, funded through the Multi Donor Fund, has five components ranging from project design and planning through to management and supervision. In addition, the programme provides funding for the completion of remaining infrastructure projects. The programme is designed to assist in accelerating the pace of infrastructure reconstruction while ensuring sustainability and, importantly, it aims to establish a model that the provincial government can apply in the future for long-term redevelopment programmes.

Cross Sector

While the recovery strategy has focused initially on the rehabilitation and reconstruction of the private sector followed by the reintegration of public sector development, across both sectors particular issues have been at the forefront of all activities. These cross-cutting issues include, but are not limited to, governance and integrity, poverty reduction, social strengthening and gender awareness, and capacity development and awareness programmes in preparation for the hand-over of the rehabilitation and reconstruction programme to communities and their local governments.

Governance and Integrity

An important innovation instigated by BRR has been the establishment of an anti-corruption unit. This unit, known as Satuan Anti-Korupsi (SAK), is the first of its kind within an Indonesian government agency/department, but more than this, its innovation stems from its broad approach which is not limited to traditional modes of auditing. Rather, the unit has developed a three-tiered approach involving prevention, education, enforcement and monitoring. The aim of this approach is to acculturate the community and the local government in principles of good governance and integrity - principles that will assist the regions to sustain the current redevelopment which in turn will provide a better foundation for future prosperity.

In 2007 there was a significant decrease in the number of complaints registered with SAK compared to the previous year; allegations of contravention of procurement procedures fell by 17 percent; reported acts of corruption and/or nepotism by 23 percent; and alleged cases of extortion nearly 50 percent. These figures can be partly attributed to BRR’s regional operations where an increased presence in the field during 2007 has enhanced transparency and conversely supervision. Be that it may, there are indications that the public education campaigns initiated by SAK and supported through other supervisory and monitoring divisions within BRR and related government agencies are beginning to have an impact on the community and local governments.

Poverty Reduction

The populations of Aceh and Nias are among the poorest within Indonesia with approximately two-thirds living below the poverty line. The isolation of the Nias Islands and the prolonged conflict in Aceh has meant very low investment levels in these regions, resulting in significant structural deficiencies, infrastructure bottlenecks and out-dated production technologies. For this reason and others, the initial rehabilitation and reconstruction programme for Aceh and Nias has been based on the development of a pro-poor economy.

While the focus of developing a pro-poor economy is focused on the establishment of sustainable livelihoods as described above, efforts have been made by the recovery programme to involve all sectors in the aim to eliminate the abnormal levels and degree of poverty in Aceh and Nias.
This objective has been addressed through a number of initiatives which in the main have centred on the strengthening and enabling of key social elements within rural and urban life. The reestablishment of traditional institutions, for example, through the religion, social and culture sector has enabled the redevelopment of social safety nets; and the redesign and restructuring of local government institutions through the institutional and human resource development sector has encouraged a more proactive public service equipped with the necessary know-how and will to serve the community.

Nevertheless, the rehabilitation and reconstruction programme continues to be a principle source of short-term employment opportunities which, for the long-term employment, remains a challenge unless significant investments are realised for sectors like agriculture or traditional industries like fishing which can absorb a large work force.

Social Strengthening

Underlying the progress and achievements of the recovery programme is the social structure for which the outcome of the recovery programme is intended. The degree to which this structure can be redeveloped to support a future for the communities of Aceh and Nias following one of the worst disasters in recent times, requires also a strengthening of the social, religious and cultural aspects of the community.

To this end, significant attention has been given to the development of socio-religious institutions. In addition to the more than 700 mosques that have been rehabilitated or reconstructed, by the end of 2007 a similar number of meunasah have been built. These small Islamic places of prayer serve not only a religious function but also provide an important venue for communities to meet and deliberate on current issues affecting their village, their land and/or fishing regions. In addition, at the end of 2007, a total of 126 churches have been reconstructed.

These developments have not been in isolation, and to support the socio-religious activities of the communities, nearly 50 related government buildings, including staff training and equipment, have been provided over the past 3 years of the recovery programme. Direct support has been provided to nearly 900 teachers of Islam, and scholarships issued to some 3,000 students. Furthermore, these teachers and students now have been provided with over 200 new schools and boarding centres (dayah) across the regions.

The focus on social strengthening has not been limited to religious activities, although in many respects, particularly in Aceh, religion is a nucleus for the majority of community social activities. By supporting the foundations of social interaction and participation it is anticipated that through the process of time other social institutions will emerge to provide the necessary support and social reinforcement necessary for a traumatised society to regain its strength and willingness to move forward.

Gender Awareness

The issue of gender has been raised throughout the recovery programme, and while quantitative outcome of government and non-government policies towards this issue requires time, significant attention has been directed towards the improvement of gender equality. The impact of the disasters had the potential to further marginalize the role of women and, from the outset of the recovery programme, efforts were made to ensure the participation of women in the rehabilitation and reconstruction programme. This was particularly emphasised in terms of implementing a community-driven programme and a pro-poor economic recovery where the role of women was identified as paramount.

Furthermore, and based on alarming statistics of the loss of life and property due to the disasters, there were concerns during the early phase of the recovery that women and children were considerably more vulnerable to the impact of the tragedies. Given these concerns, the establishment of a health and education department within BRR included a special unit designed to assist women and children. As of 2007, nearly 1,300 women and children had received legal assistance, with some 43 one-stop centres (P2TP2) reconstructed for providing support services. These initiatives were supported by a range of workshops, research, the production of documentary films, the development of policies and media campaigns.

Additional support has been directed towards awareness programmes within local governments, including some 55 short courses for government employees, supported by 140 programmes designed to identify equal opportunity issues within government institutions.

Transition

During 2007, preparations for the process of transferring assets and the lead role of the recovery programme to the local community and their government was initiated by BRR in conjunction with the central government and participating stakeholders. By the end of 2007, policies and strategies were formulated and in some instances assets were handed over to the local government.

The particular focus of the transition plan is to achieve a seamless process of exchanging specific roles related to the rehabilitation and reconstruction programme, and to ensure that those assets to be managed by the local government can be adequately maintained. With respect to the former, there have been several important achievements. The geo-spatial centre at BRR, for example, is now being moved to a local government office. This facility, apart from providing sophisticated mapping services, is equipped to generate a range of statistics which can be diagrammatically represented on detailed maps. Once established within the local government, the regional development planning agency and other related departments will have the facility to generate geo-spatial information - a facility that has yet to be established locally in other provinces in Indonesia.

The transition process represents an important milestone in the rehabilitation and reconstruction programme, and during 2008 considerable focus will be given to enhancing local government's capacity to manage and maintain the achievements of the recovery programme.

Conclusion

The strategy of the recovery programme to concentrate initially on the private sector and then the public sector has enabled a gradual and timely intertwining of the various components of what is one of the largest rehabilitation and reconstruction programmes in recent history.
At the outset of the programme, as the head of the government’s implementing agency, BRR, explained when asked what can we do? "Pick up a rock, throw it anywhere, and start there!" The enormity of the devastation was inconceivable and so demanding that no one had a congruent view, far less a comprehensive plan on how or where to proceed.

There was a Master Plan - a blue print prepared by the National Planning Agency (Bappenas), in collaboration with major stakeholders, which provided a detailed framework. Nevertheless, it was necessary to develop an entire organisation to coordinate the way forward - a situation once described by the Aceh-Nias Coordinator for the World Bank, as being similar to: "... cooking the meal while building the kitchen."

In the months following the establishment of BRR in April 2005, as the lead coordinator and government arm of the recovery programme, a general sense of cohesion and clarity was quickly achieved, resulting in the formulation of recovery strategies, policies and short, medium and long term development plans. The decision to focus initially on the private sector was prudent and practical. The subsequent recovery of the public sector have been challenging, but successful, and now after three years both sectors are preparing to a return to normal life.