Establishment

The Rehabilitation and Reconstruction Agency (BRR - Badan Rehabilitasi dan Rekonstruksi) for Aceh and Nias was established on April 16, 2005, and its mandate is defined by Regulation in Lieu of a Law (Regulation/Perpu) No.2/2005 issued by the President of the Republic of Indonesia. On April 29, 2005, President Susilo Bambang Yudhoyono signed Presidential Regulation (Perpres) No. 34/2005 detailing the organizational structure and mechanism of the Agency.

BRR has a fulltime staff and two Oversight Boards. The Agency, which will operate for a four-year period, will be based in Banda Aceh, with a branch office in Nias and a representative office in Jakarta.

Mission

BRR’s mission is to restore livelihoods and strengthen communities in Aceh and Nias by designing and overseeing a coordinated, community-driven reconstruction and development program implemented according to the highest professional standards.

A coordinated approach to planning, fundraising and implementation will ensure that the reconstruction program is effective, that duplication is minimized, and that donor funds are used optimally.

BRR recognizes the important role of local community input and participation in the reconstruction effort. Aceh and Nias government bodies, community leaders, academics, religious leaders and Non-Government Organizations (NGOs) will be continuously consulted and involved in shaping and implementing the reconstruction plan for Aceh and Nias.

The Agency will adhere to the highest professional standards in fulfilling its mission. This includes providing full transparency to the flow of funds and project prioritization process, instituting effective governance procedures for the Agency?s operations, and establishing clear project implementation guidelines.

Roles

BRR has been established as a coordinating agency to ensure transparency, accountability, and speed in the reconstruction of Aceh and Nias. It has not been designed to directly manage projects currently being carried out by Government Agencies, Donor Institutions, Non-Governmental Organizations (NGOs), or the private sector.

The Agency’s core role is to match donor funds with specific community needs in Aceh and Nias through a process that is rigorous, sensitive to local concerns and priorities, and well-monitored.

As part of its mandate for transparency, the Agency will track and make publicly available the project demands submitted by affected regions, the use of donor funding, and the status of project execution.

BRR will also determine criteria for prioritizing projects and optimizing the use of funds. The Agency will actively compile input from government agencies and local communities to determine priorities reconstruction and rehabilitation.

The Agency will expedite the disbursement of funds to priority areas as well as resolve logistical bottlenecks and other project delays. In matching donors to projects, the Agency will verify that reconstruction activities are aligned with the Government’s Master Plan for Rehabilitation and Reconstruction.

BRR will make use of a team of experts and advisers with extensive knowledge and experience in disaster recovery programs. Each employee and contractor will be held to the highest standards of personal integrity and professionalism. Local government agencies in Aceh and Nias,as well as line ministries will continue to play key roles in project development and implementation.

In order to ensure continuity in the long-term reconstruction of the tsunami affected areas, BRR will place an immediate emphasis on capacity building so that local communities can continue the development program after the four-year mandate of the Agency is complete.

Oversight Boards

To ensure full accountability and transparency, two independent Oversight Boards, which report directly to the President, have been established to oversee BRR’s governance, operations and disbursement of funds:

• Advisory Board: consists of 17 members appointed by the President, including representatives from central and regional governments, religious and adat (local custom) institutions, prominent citizens, and academicians. The Advisory Board may:

- Give direction to the Agency in formulating, planning, and implementing the rehabilitation and reconstruction process.

- Request information and clarification from the Supervisory Board and the Agency on any matters related to rehabilitation and reconstruction.

- Engage the services of experts, professionals, and consultants as well as staff from Government institutions as necessary.

- Supervisory Board: consists of 9 members appointed by the President made up of community representatives and technical advisers, including representatives of donor organizations. The Supervisory Board has the right to request clarification from the Agency and other related parties regarding the reconstruction process. The Supervisory Board is responsible for:

- Supervising and monitoring the implementation of rehabilitation and reconstruction activities.
- Receiving and handling public complaints.

Regulation

BRR was established based on a Regulation in Lieu of a Law (Perpu). In the Perpu, the following points were emphasized:

• Rehabilitation and reconstruction activities will be implemented based on the principles of transparency, accountability, participation, and responsibility by prioritizing public interest and remaining free of corruption, collusion, and nepotism.

• All the activities of BRR must:

- Work within the framework of the master plan.
- Work within the existing legal framework on regional autonomy.
- Take into account the interests of the affected communities.

• The Agency has the authority to coordinate, collaborate, and monitor rehabilitation and reconstruction activities, including those funded directly by foreign donors.

• The Agency’s coordination functions are made retroactive from the end of the emergency phase (March 26, 2005)

• The flow of any Government budget funds (APBN) for rehabilitation and reconstruction activities will be facilitated by a special Treasury Office (KPPN Khusus), which is formed by the Ministry of Finance.

• Financial reporting by the Agency will be in accordance with the Government’s existing accounting and reporting standards. The Agency will be audited by the Supreme Audit Agency (BPK) or independent auditors if necessary.

• The public will have access to the financial reports, performance reports and audit reports of the Agency.

• The Agency will act upon the input of the communities and will abide by special regional autonomy laws.

• The Agency can request information and technical support necessary to execute its duties from the central government, regional governments, and related parties.