December 26, 2009 marks five years since the earthquake and tsunami that caused unprecedented devastation and loss of life across Aceh and Nias. The Multi Donor Fund for Aceh and Nias (MDF) was formed in response to the Government of Indonesia's (GOI) efforts to coordinate and mobilize donor support for the reconstruction and rehabilitation of the affected areas. The MDF pools approximately US $ 685 million in grant resources provided by 15 donors to support implementation of the government's rehabilitation and reconstruction program.
The overall goal of the MDF is to contribute efficiently and effectively to the reconstruction of a "better" Aceh and Nias following the earthquakes and tsunami. MDF projects not only reconstruct infrastructure and rehabilitate the economy in accordance with GOI's Master Plan, but also address concerns such as reducing poverty, improving livelihoods, increasing gender equity and the sustainable management of the environment.
Five years after the tsunami and earthquake, the overall recovery and reconstruction of Aceh and Nias can claim remarkable achievements. The MDF contributed 10% of the overall reconstruction funds, and its contributions have supported the Government of Indonesia's efforts and provided a forum for dialogue with central, provincial and local governments, and other major stakeholders on the broader sectoral strategy on reconstruction. The Agency for the Rehabilitation and Reconstruction of NAD-Nias (BRR), the GOI's agency set up to coordinate the recovery and reconstruction in Aceh and Nias, closed as scheduled in April 2009 as its mandate came to an end. BAPPENAS, the national planning agency, has been tasked to coordinate the remaining reconstruction efforts with provincial government and all relevant line ministries. The MDF continues to add value after the closure of BRR by working closely with BAPPENAS and the Governments of Aceh and North Sumatra to identify and respond to remaining needs in the reconstruction process. This evolving role for the MDF will continue until it closes in December 2012.