BUILDING RESILIENCE BY STRENGTHENING GOVERNANCE AND ACCOUNTABILITY OF POST-

DISASTER RECOVERY IN INDONESIA: CASE OF ACEH

Dr. Suprayoga Hadi (yogahadi@gmail.com)Deputy Minister for Resources Development, Ministry of Disadvantaged Region

International Converence on Building Resilence for Food and Nutrition SecurityInternational Food Policy Research Institute (IFPRI)

Addis Ababa, Ethiopia, 17 May 2014

REPUBLIC OF INDONESIA MINISTRY FOR DISADVANTAGED REGION

Outline Topics of Presentation

1. Disaster recovery in Indonesia 2005-20102. Policy response on Aceh-Nias Post-disaster Recovery3. Learning from Aceh-Nias Post-disaster Recovery

Process and Results4. Improving Governance scheme on Post Disaster

Recovery in Indonesia5. Lessons Learned and the way forward

2

Various significant disasters that occurs in Indonesia in the last 10 years

No Disaster Event Date Damage & Losses (Billion Rp)Damage Losses Total

1 Tsunami and Earthquake in Aceh and Nias

Des 2004 9.208 32.192 41.400

2 Earthquake in Yogyakarta and Central Java

Mei 2006 2.763 26.386 29.150

3 Earthquake Bengkulu & West Sumatera

Sept 2007 939 949 1.889

4 Jabodetabek Flood, 2007 Feb 2007 649 4.535 5.184

5 Earthquake West Sumatera Sept 2009 2.397 18.470 20.867

6 Flash Flood in Wasior, West Pupua

Sept 2010 237,4 43,17 280,58

7 Tsunami and Earthquake in Mentawai Islands

Okt 2010 271,86 77,42 348,92

8 Mount Merapi Eruption in Yogyakarta and Central Java

Okt 2010 1.685,37 1.943,35 3.628,71

3

EmergencResponse

..…when disaster occurred…..

Disaster

Post RR

Post DisasterAssessment

RRPlan

PhaseOutPlan

LongertermDev’tPlan

MTR

Interrupted development

ReconstructionRehabilitation

NormalDevelopment

4

Pre-Disaster

Post-Disaster

Emergency Relief

Early Recovery

Rehabilitation & Reconstruction

On-site Rehabilitation

Relocation

Disaster

No Stages Necessary Assessment and Initiatives

1 Pre-Disaster Geographic, Demographic, Economy, Social, Infrastructure, Institution

2 Post-Disaster Victims, IDPs, Damage & Loss Assessment, Need Assessment

2.1 Emergency Relief Numbers & Distribution of IDPs & temporary shelters

2.2 Early Recovery Shelters, basic infrastructures, social services, basic livelihoods, facilitation

2.3 Rehab-Recons Housing, infrastructures, social, local economy, institution

2.3.1 On-site Rehab-Recon Identification of Household, rehab location, risk mitigation, financing, time-frame

2.3.2 Relocation Ident. of Household, location preparation, risk mitigation, financing, time-frame

3 Better Livelihood Applying Disaster Mitigation & Risk Reduction for Better Settlement & Livelihood

Better Settlement &

Livelihood

Disaster Risk Reduction

Post-Disaster Recovery Logical Framework

5

Phases of Post-Disaster Recovery

PHASES OF RECOVERING AFTERMATH DISASTERS

Objective:Life rescue

Emergency rescueBuilding up public kitchenRescuing alive victimsCleaning up wreckagesProviding temporary settlement

EMERGENCY RESCUETime: 1 – 2 months

RESCUE PHASE

Objective:Recovering minimum standard public services

Public servicesBasic social servicesBasic infrastructuresRecovering economic facilitiesRebuilding settlementsMental rehabilitation

Time: Month 2 – 12

RECOVERY PHASE

Objective:Reconstructing the whole system, including:

Economy (production, trade and commerce, banking)TransportationTelecommunicationSocial and heritageInstitutional

RECONSTRUCTIONTime: Month 7 – 30

REHABILITATION

6

Post Disaster: From Description to Prescription

Damages

Losses

Human Effects

Recovery Needs

Post-Disaster DRR Needs

Early Recovery Needs Rehabilitation

Reconstruction

Long-term Recovery

Recovery Financing

1.APBN2.APBD3.Donors4.Communities

Post-Disaster Risk Assessment

DaLA & Humanitarian

Relief Needs Ass’t

Needs Identification

Recovery Action Plan

Recovery Financing Plan

Post-Disaster Needs Assessment

7

• APBD-P• RKPD• RAPBD

• APBD-P• RKPD• RAPBD

• APBN-P• RKP• RAPBN

• MULTILATERAL• BILATERAL• ONBUDGET• OFF BUDGET

FOREIGN AIDAPBN

PROVINCIAL APBD

CITY/DISTRICT

APBD

Rehabilitation and Reconstruction Funding Sources

8

Financed by private/ company/ community

Financed by community / private with government support

Government Expenditure, support by community

Finance by Government Expenditure

Housing and settlement

Physical rehabilitation

Infrastructure Physical rehabilitation :electricitywater, telecom

Physical rehabilitation :market-place

Physical rehabilitation:road, bridge, irrigation

Social sectors Physical rehabilitation :culture/national and world heritage, health, education

Physical rehabilitation:government offices, public facilities

Economic sectors Financial stimulation, and regulatory support :economic sector in general

Financial stimulation and regulatory support : SME

9

Aceh Post-Disaster Recovery Challenges Related to Livelihood

1. Aceh was a conflict areas for years before the disaster, thus in spite of rich in oil, gas, mining, and agriculture, the region is economically isolated.

2. Nias is an island with poor infrastructure and limited access to market, leaving much of the population in poverty, and the cocoa and rubber as main commodities posses low value.

3. The destruction from earthquake and tsunami added a huge burden to an already struggling population

4. Disasters caused lost of job and livelihood, roads network disappear, and aid delivery difficult.

10

The Multi Donor Fund (MDF) for Aceh and Nias

1. In early 2005, Government requested establishment of a multi donor fund to support the reconstruction.

2. 15 donors contributed USD 655 million,3. The fund are used for 22 projects, group into six, i.e.:

a. Recovery of Communitiesb. Recovery of Large Infrastructure and Transportc. Recovery of Economic Development and Livelihoodsd. Strengthening Governance and Capacity Buildinge. Enhancing the Recovery Processf. Sustaining the environment

4. Each of these projects is attached directly to respective technical ministries

11

Aceh Economic Development Financing Facilities (EDFF) and Nias Livelihood and Economic Development Program (LEDP)

Aceh EDFF1. To improve production, quality,

and value of agricultural product that contribute to job creation and poverty alleviation,

2. Working with all actors in product supply chain, from on-farm pro-duction, processing, manufacturing, trading, to export and end-user retailing, including cooperatives.

3. Covers main commodities in 14 districts, i.e.: cocoa, coffee, rice, -emping, patchouli, cattle, and fisheries

Nias LEDP1. Similar to EDFF in Aceh, except it

covers rubber, cocoa, and rice.2. Also, it is focused mainly on on-

farm, particularly on improvement of agricultural practices, instead of all supply chain.

3. Aids and activities include training on agricultural practices, provision of agricultural input, provision of machinary and tool, establishment of farmer group and women group, proviosn of b;ock grant for training and implementation of of-farm livelihhod.

12

Brief overview from Aceh-Nias 2005 - 2009

1) The 1st experience to employ Damages and Losses Assessment for recovery strategy formulation, fully supported by the international community

2) Recovery strategies: outlined in the Master Plan for Aceh-Nias Rehabilitation and Reconstruction (Perpres 30/2005) and its conclusion under Presidential Regulation 47/2008

3) Centralized ad-hoc institutional arrangement (BRR) with multi-dimension role: planning and resource mobilization, implementation, monitoring and evaluation under Law 10/2005

4) Centralized management for restoring communities and social capital, rebuilding infrastructure, revising livelihoods and communicating the recovery progress

5) Insignificant degree of participation of the central line-ministries/agencies and provincial government of Aceh and North Sumatera, high degree of international attention and contribution

6) Innovation: a strong communication strategy for non-government resource mobilization, off-budget tracking MIS and asset-tracking MIS

7) Resource mobilized: Rp 35,36 trillion (APBN+on-budget external assistance or PHLN), USD 685,15 million (committed MDF), USD 3,70 million (non MDF external assistance/off-budget)

13

1) Presidential Regulation No.47/2008 on the Master Plan of RR NAD-Nias and Presidential Regulation No.3./2009 are the legal basis of the rehabilitation and reconstruction work in Aceh and Nias until the end of 2009;

2) The Master Plan of RR NAD-Nias was designed to have same length of duration as the National Medium Term Development Plan (1st RPJMN) of 2005–2009. RPJMN itself was aimed to restructurize and develop Aceh (as part of Indonesia) on a multi dimensional level based on Security and Peace, Justice and Democracy and an Increase of the social welfare;

3) To ensure the existence of regulatory framework for the reconstruction work in Aceh and Nias beyond the year 2009, Bappenas is currently assisting Bappeda of NAD and Bappeda of North Sumatra in formulating the Aceh Action Plan for Reconstruction Sustainability 2010 – 2012;

4) The Aceh Action Plan for Reconstruction Sustainability 2010 – 2012 is designated to be inline with the 2nd RPJMN 2010-2014, with the RPJMN itself, having a particular role in maintaining the development in multi dimensional level based on Capacity Building, Technology enrichment and Economic enhancement in terms of competitiveness.

Policy Framework for Aceh-Nias Recovery Process

14

National Medium-Term Plan (NMTP) 2005-2009 NMTP 2010-2014

President Regulations 30/2005 and 47/2008

15

Action Plan 2010-2012

Accelerated Sustainable Development

16 Apr ‘09Apr ‘05 Dec’09Dec ‘08

BRRImplementation & Coordination

Line Ministries & Local GovernmentsExecution

Liquidation Team, PMU-RRI and PMU

of Line Ministries to sustaining BRR

mandates

BKRAN, BKRA, BKRN

Coordination

Kesinambungan RekonstruksiPenyelesaian Mandat BRRRekonstruksi

Stages toward Reconstruction Sustainability: Case of Aceh-Nias Recovery Process

2010 - 2012

2012

Mag

nitu

de o

f inv

olve

men

t

Stages from Reconstruction to Accelerated Sustainable Development

Transition –Reconstruction Continuation

2012-2014

Accelerated Sustainable Development

(Action Plan)

Local Governments,Line Ministries

Loca Gov’ts,Line Ministries

2010 2011

(Acelerated Development Plan)

“Interface” between Action Plan and Accelerated Development Scheme for Aceh and Nias Recovery Process

16

1) Under the prevailing Law no. 24/2007, Government Regulation no. 21/2008, Government Regulation no. 22/2008 and Government Regulation no. 23/2009; the guideline for rehabilitation and reconstruction has been issued by BNPB through the Chairman’ regulation no. 11/2009

2) National Disaster Management Agency (BNPB) has authorized mandate to discharge the on-call financing from APBN source, based on needs for post disaster recovery

3) Bappenas, Ministry of Finance and BNPB collaborate closely to mobilize APBN-sector funding for relevant line ministries through APBN-P mechanism, and coordinate planning for Government Annual Workplan

4) To prevent delay for reconstruction, this overcome by: a) reconfiguring existing projects and programs in the disaster-affected area; b) drawing on government sources of financing; and c) mobilizing external assistance from donors and NGOs that can flow outside of the government budget to support government policies and programs

5) Bappenas leads the effort to mobilize external assistance through The Indonesian Multi Donor Fund Facility For Disaster Recovery and signing the MoU with The United Nations and the World Bank.

IMPROVING IMPLEMENTATION FRAMEWORK AND GOVERNANCE FOR POST-DISASTER RECOVERY POLICY

17

1. The simplicity of recovery framework has been adopted (with locality modification) at post-earthquake in West Sumatera (2007), and post-earthquake in West Java-Central Java (2009), West Sumatera (2009), Mentawai Island, and Merapi Eruption and lava flood (2010)

2. The existing public funding regulations and mechanisms does not allow a quick response to post disaster needs, except from the restricted “on-call” resources managed by the National Disaster Management Agency

3. Immediately after humanitarian relief, an interim intervention is required to address the on-going crisis for the provision of transitional shelter, water and sanitation, temporary health and education facilities, food allowance, protection etc. to the affected communities

4. A national post disaster reconstruction fund may be an alternative mechanism to address current and future disaster response in Indonesia; it should have the following features: Provide flexible financing instrument for systematic response to disaster, preferably for longer-term and future use if desired; and have a focus on financing critical post disaster needs ie: housing, community infrastructure, livelihoods, disaster risk reduction, technical assistance for quality assurance, monitoring and evaluation

5. To fill-out the gap for interim intervention and scarcity of fund for longer term recovery, international assistance is required

IMPROVEMENT FOR FUTURE PERSPECTIVE OF DISASTER RECOVERY FRAMEWORK

18

LESSON LEARNED AND WAY FORWARDS

Since 2005 until 2012, a significant evolution is made on post disaster recovery management:1. Recovery policy incorporated disaster risk reduction and preparedness to

overcome possible future disaster, in alignment with Law no. 24/20072. Strengthening the local capacity for disaster management is become one of the

GoI priority under the RPJMN 2010-20143. Disaster management agency has been established at central and provincial level

to lead and coordinate the pre-disaster, during and post disaster program implementation

4. DaLA and Action Plan for Rehabilitation and Reconstruction adopted as reference for recovery implementation guideline

5. Partnership on external assistance is coordinated through the IMDFF mechanism; led and owned by the GoI, for effective resource mobilization; AS WELL AS complementary approach has been adopted through IMDFF for filling the financing gap

6. Most importantly, on general perspective, recovery management responsibility has been decentralized through lesson-learned and best practices in Aceh-Nias, Yogyakarta-Central Java, West Java, West Sumatera

19

Dr. Suprayoga Hadi, is Deputy Minister for the Development of Resources at the Ministry for the Development of Disadvantaged Regions, Republic of Indonesia. Before joining the Ministry for the Development of Disadvantaged Regions in June 2011, when he was assigned as Deputy Minister for the Development of Special Region until March 2014, he had been assigned as Director for Special Area and Disadvantaged Region from August 2005 until June 2011 at the Ministry for National Development Planning/National Development Planning Agency (BAPPENAS), Republic of Indonesia. His career at BAPPENAS began in 1990. He has various responsibilities for planning, programming and monitoring of the policies and strategies for disadvantaged region and special area development, and has been acknowledged as focal person on disaster reduction and recovery related issues, such as the rehabilitation and

reconstruction of post-disaster areas in Indonesia, particularly in post-disaster recovery process in Aceh and Yogyakarta, as well as post-conflict regions in Aceh, Papua and Maluku. Since 2006 he has been a focal resource person for disaster risk reduction policy initiatives in Indonesia, working with respective international donor agencies, such as the World Bank and UNDP, by which he has been appointed as the National Project Directors for many foreign-assisted disaster reduction and conflict recovery related projects. Along with his assignment as Government official of BAPPENAS and the Ministry of Disadvantaged Region, since 1992 he has been teaching as a lecturer in the graduate program of regional development planning at University of Indonesia in Jakarta. After he obtained his master degree in regional planning at Bandung Institute of Technology in 1990 and a bachelor degree in agricultural economics at University of Lampung in 1987, he enrolled in the doctoral program at University of Southern California in 1998, and obtained his Doctoral degree in Planning and Development Studies in 2002.

THANK YOU