Indonesia: Multi Donor Fund (MDF) continues its commitment to reconstruction five years after the tsunami

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Banda Aceh, December 16, 2009 - Government of Indonesia has shown tremendous leadership in coordinating the US$7 billion reconstruction effort that has yielded remarkable achievements. Since the closure of the special reconstruction agency -BRR - in April 2009, local government and BAPPENAS at the central level now play a leadership role in the continued reconstruction efforts

"The Multi Donor Fund for Aceh and Nias remains committed to supporting the continued reconstruction and rehabilitation of Aceh and Nias until the end of 2012," said Joachim von Amsberg, World Bank Country Director for Indonesia during the launch of the MDF's Annual Progress Report for 2009.

Five years after the tsunami and earthquake, the Multi Donor Fund for Aceh and Nias (MDF) has shown remarkable achievements. The MDF is a partnership of the Indonesian government, the international community, and civil society to support the recovery following the earthquakes and tsunami. It includes contributions from 15 donors: the European Commission, the Netherlands, United Kingdom, World Bank, Sweden, Denmark, Norway, Germany, Canada, Belgium, Finland, Asia Development Bank (ADB), United States, New Zealand and Ireland. The World Bank serves as Trustee of the MDF.

The MDF has committed US$ 601 million to 22 projects in five key areas. This includes supporting the recovery of communities through addressing gaps in the reconstruction of housing and community infrastructure, and also in rebuilding and rehabilitating large scale infrastructure and transportation networks. The MDF has also made significant contributions to the overall reconstruction of Aceh and Nias through support for governance and capacity development at multiple levels. Cross-cutting concerns such as environmental sustainability and support for livelihoods have also been an important focus of MDF efforts, in line with the Government's own reconstruction and development agenda. As the reconstruction winds down, the MDF continues its commitment to Aceh and Nias through scaling up its support for improving economic opportunities and livelihoods to strengthen the recovery process.

"The MDF has helped the government reach its reconstruction targets as outlined in the Master Plan for Aceh-Nias. Under government leadership, the MDF has proved to be a good instrument for harmonizing donor support for local priorities", according to Suprayoga Hadi, Director of Special and Disadvantaged Areas, BAPPENAS.

The GoA now jointly leads the MDF, to ensure reconstruction remains responsive to local needs and priorities and strengthens capacity to carry out accelerated development.

"The Government of Aceh continues to play a strong role in the MDF to guide the overall focus of its reconstruction assistance," says said Vice Governor of Aceh, M. Nazar. Community recovery projects have proved particularly successful in their approach as well as meeting their objectives.

Using a community-driven approach, these projects have been successful in assisting communities to rebuild and rehabilitate houses and vital community infrastructure. As of September 30, 2009, more than 19,000 houses have been constructed or rehabilitated. Other achievements in this area include the completion of 2,655 kilometers of village roads, 936 bridges, and 1,473 kilometers of irrigation and drainage channels.

The large infrastructure investments currently being implemented are drawing to a close, with 41 of 53 sub-projects completed. These investments have provided the people of Aceh and Nias with about 290 kilometers of new and rehabilitated national, provincial and district roads, 9 municipal water systems, and also the rehabilitation of three vital ports.

"We are happy to see that the funds we as partners have contributed for the reconstruction have resulted in significant benefits for the people of Aceh and Nias," said Nona Deprez, First Secretary of the Delegation of the European Union.

An independent review of the MDF concludes that the MDF is performing well and is highly responsive to priorities set by the Government of Indonesia. As the MDF matures and projects reach completion, valuable lessons are emerging. The review notes that the MDF is uniquely placed to identify key lessons from the post disaster experience in Aceh and Nias. These can contribute to more efficient and effective recovery and reconstruction in future post disaster responses, not only in Indonesia but also around the world.


D. Geumala Yatim

Nia Sarinastiti