Indonesia: Implementing projects, achieving results - 18 months of the Multi Donor Fund for Aceh and Nias

Situation Report
Originally published


18 months of the Multi Donor Fund
Implementing Projects, Achieving Results

Following the unprecedented worldwide support for the victims of the tsunami and earthquakes, the Indonesian Government and the international community established the Multi Donor Fund for Aceh and Nias to assist in the coordination of funds made available for post-disaster reconstruction. The Fund now pools approximately $650 million of pledges from 15 bilateral and multi-lateral donors (European Commission, Netherlands, United Kingdom, World Bank, Sweden, Denmark, Norway, Canada, Asian Development Bank, United States, Germany, Belgium, Finland, New Zealand and Ireland) and has established itself as a trusted partner for the Government of Indonesia in the recovery process.

Eighteen months after its formation, the Multi Donor Fund is firmly focussed on project implementation and achieving strong results quickly. The Fund currently manages a portfolio of 17 projects valued at $713 million with $482 million from the Multi Donor Fund and another $231 million from the Government's Coordinating Agency for the Rehabilitation and Reconstruction of Aceh and Nias (BRR).

Almost 90% of the Fund's initial contributions have been allocated. As of December 2006, the Fund has received $364 million from donors and has already disbursed $214 million to its projects. In recognition of the Fund's success in quickly mobilizing resources to meet critical gaps, four donors (the Netherlands, United Kingdom, Sweden, and Germany) have pledged an additional $110 million to the Multi Donor Fund.

Key Achievements from the first eighteen months include

  • Over 6,000 houses built or under construction and over 8,400 houses under repair using the community-driven approach developed by the Multi Donor Fund Housing and Settlements project. In recognition of this project's success, the Government of Indonesia has established this approach as the model for all housing reconstruction following the Yogyakarta and Central Java earthquakes and tsunami.

  • Establishment of a network of 13,000 facilitators for Multi Donor Fund projects that reach all villages in Aceh and Nias. This network facilitated a democratic decision-making process for communities to plan and prioritize needs in their area. Through this process, communities have built over 1,900 km of roads, 740 bridges, 240 school buildings, 1,143 irrigation and drainage units, 570 water units, and 632 sanitation units, 40 health posts and have granted scholarships to 7,082 recipients and micro-credits to 3,685 recipients. The facilitators are now also assisting the Aceh Reintegration Agency (BRA) to distributed $ 61.75 million of post-conflict village reconstruction funds.

  • Over 10 million days of labor generated through Multi Donor Fund projects, making the Multi Donor Fund the largest non-governmental employer in Aceh and Nias.

  • Over one million cubic meters of tsunami waste cleared, almost 100,000 cubic meters of municipal waste collected and 620 hectares of rice fi elds cleared through the Fund's waste management project. This initiative has introduced municipal waste collection systems in 6 districts and reestablished destroyed collection systems in 2 districts in Aceh and Nias. Communities have agreed on land ownership of over 138,000 land parcels facilitated by NGOs and the National Land Agency in the most devastated areas of Aceh, following a standardized process. Community agreement on land ownership is an important step for the reconstruction of communities on a sound basis and towards the issuance of offi cial land titles.

  • The first 18 months of the Multi Donor Fund have been characterized by community development and empowerment. In the next twelve months, the Fund's portfolio will also be focussing on building key infrastructure, such as roads, ports, drainage facilities and other remaining priority needs, both at district and provincial levels.