European Commission - Humanitarian Aid Office (ECHO)

Date: 9 September, 2005

MEMO/05/310

Brussels, 9 September 2005 - The Indonesian Government and the Free Aceh Movement (GAM) signed on 15 August 2005 a peace agreement that offers an end to nearly 30 years of fighting in the resource-rich province of Aceh. The conflict has led to over 10,000 casualties, displaced thousands more, caused severe hardship to the population of the conflict-affected areas and has been a major obstacle to humanitarian access and sustainable development in the whole province of 4.2 million people. The economic and political impact of the conflict has been felt by the country as a whole.

On 26 December 2004 the Indian Ocean region suffered, in the form of a tsunami, one of the worst natural disasters in recorded history, with Aceh as one of the most affected areas. The true scale of the tragedy is now clear, with some 300,000 dead and a half-a-million people displaced. The European Union response (covering both Commission and Member State donations) to the Tsunami crisis was immediate and generous with contributions amounting to around €1.5 billion, making the EU the largest donor to the appeal.

The Commission contribution to alleviate the effects of the Tsunami in the whole region is being implemented in two phases:

- An immediate emergency and humanitarian assistance: €123 million.

- Longer-term support to reconstruction: €323 million spread over two years.

- An additional €27 million are being mobilised under regional programmes and through the Community Rapid Reaction Mechanism.

What is the Commission support to Aceh?

Peace process

Peace efforts in Aceh have been constantly encouraged by the European Commission. The Commission was one of the co-chairs of the "Tokyo Preparatory Conference for Peace and Reconstruction in Aceh", together with Japan, the US and the World Bank. When the Cessation of Hostilities Agreement was signed between the Government of Indonesia and the GAM in December 2002, the Commission supported the agreement monitoring process through the Centre for Humanitarian Dialogue.

During 2005, the Commission has also financially supported former President Ahtisaari's non-governmental organisation "Crisis Management Initiative" in its efforts to resume talks between both parties, that concluded successfully last August with the peace agreement.

With the task of observing compliance with the peace agreement and resolving disputes, the European Union and five ASEAN countries[1] are preparing to launch the Aceh Monitoring Mission (AMM). An Interim Monitoring Presence has been in the field since the signing of the agreement. The European Commission also encourages the Indonesian Government and GAM to involve other non-state actors in the peace process, such as grassroots organisations, women's groups, the Ulema's (Indonesian religious leaders) councils and human rights groupings.

While the Commission is not participating in the AMM, it is preparing a support package to ensure sustainable implementation of the peace process, based on the Memorandum of Understanding and corresponding programmes set up by the Indonesian authorities.

Both the Indonesian government and the GAM recognise that the success of the peace process and the AMM in stabilising Aceh will depend in important measure on the ability of former combatants to reintegrate into normal society. This will need to be followed closely by a wider reintegration programme addressing the needs of both the former GAM and the conflict-affected communities.

The Commission has allocated €4 million under its Rapid Reaction Mechanism to help integrate former political prisoners and fighters of the conflict into civilian life.[2]

The other important area of support to the peace process identified by the Commission is consolidation of governance and democracy in Aceh in the framework of the revised Special Autonomy Law of Aceh.

Post-Tsunami reconstruction

Commission support to the implementation of the peace agreement will be integrated into the more general efforts of post-tsunami reconstruction in Aceh, where the Commission is a lead reconstruction donor. The Commission pledged €207 million reconstruction package for Indonesia, which includes €7 million under the Rapid Reaction Mechanism to kick-start long-term reconstruction work. This support comes in addition to the Commission's €123 million humanitarian aid assistance to all tsunami-affected countries which started flowing only days after the disaster struck.

The Tsunami emergency phase has been successful: victims have received shelter and support, and the fear of disease has been avoided. Now, the Commission is committed to reconstructing the affected areas in a sustainable way. Short-term rehabilitation activities will last until the end of 2006, allowing Commission aid to build on the humanitarian aid phase.

In Indonesia, the Commission's Humanitarian Aid Office, ECHO, has funded the establishment of a disease early warning system by WHO; the provision of access to primary health services and psychosocial support for 90,000 people; the creation of 20 child centres to register, trace and reunify separated/unaccompanied children; access to safe water and sanitation and distribution of food to around 150,000 people; improving the living conditions of people living in camps and at the same time assisting those willing to return to their places of origin to rebuild their houses and restart their agriculture and fishing activities.

The Commission has allocated €203.5 million (€200 million from ALAT budget and €3.5 million from the Rapid Reaction Mechanism) to Indonesia to assist in the arduous task of rehabilitation and reconstruction. Commission funds are channelled through a Multi-Donor Trust Fund, with the World Bank as a trustee. The Commission is the largest contributor to the Trust Fund and co-chairs its steering committee together with the World Bank and the Government of Indonesia.

This €203.5 million reconstruction package will focus on three areas: (i) reconstructing damaged areas; (ii) restarting livelihoods, and (iii) repairing larger infrastructures. The key beneficiaries will be the local communities affected, including fishermen, local businesses and the general population, with an emphasis on the most disadvantages and excluded groups, and a particular focus on women and children.

During summer 2005, €71.3 million have already been released to the Trust Fund[3] to support repair and construction of housing, building up of basic public infrastructure and services, as well as restarting economic activities and securing the livelihoods of affected people. They will also go towards strengthening the capacity of the new Reconstruction Agency and local government in Aceh.

Another €3.5 million package from the Rapid Reaction Mechanism will be directed to facilitating the role of civic society, to provide satellite imagery for reconstruction and to support Aceh local governance Action Plan.

Europe's commitment to maximise the effectiveness of funds is also demonstrated by the newly established "Europe House" in Banda Aceh which will provide high-level co-ordination of joint EU Member State and European Commission actions whilst ensuring that money is being spent in a transparent and accountable way.

Footnotes:

[1] Brunei, Malaysia, Philippines, Singapore and Thailand. Switzerland and Norway will also contribute to the mission in association with the EU.

[2] IP/05/1116 Aceh: Commission releases €4 million to support the peace process.

[3] See IP/05/1115 Aceh: Commission reconstruction activities post-Tsunami.