support to bra & peace building in aceh

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REH/2007 / 132-996

Annex I

Support to Aceh Reintegration and Peace Agency BRA)

nd Peace Building n Aceh



REH/2007 1132-996

I THE ACTION

1. Description

1.1 Title

Support to Aceh Reintegration Agency (BRA) and Peace Building in Aceh

1.2 Location(s)

Province ofNanggroe Aceh Danusalam, The Republic of Indonesia.

1.3 Amount requested from the Contracting Authority:

Total eligible cost of the Amount requested from u1cof total eligible cost ofaction t.be Contractin2 Authority action

EUR 2,601,057 EUR 2,450,000 94.19

1.4 Summary

On 5 1h August 2005 the Government of Indonesia (GoI) and the Free Aceh Movement

(GAM) signed a Memorandum of Understanding (MoU) that ended the 30 years of armedconflict. In the MoU chapter 3.2 it is stated that the Gol and the authorities of Aceh will takemeasures to assist persons who have participated in GAM activities, pardoned politicalprisoners and victims of conflict to facilitate their reintegration into society. This includespolitical, social and economic reintegration. Gol and GAM agreed that a reintegration ftmdwould be established under the administration of Aceh but based on national funding. InFebruary 2006 the Aceh Reintegration and Peace Agency (BRA) was established to carry outthis mandate.

The goal of this project is to contribute to the consolidation of peace in Aceh by providingtechnical and operational support to BRA to carry out its reintegration mandate The project

seeks to ensure that BRA has sufficient technical capacity to implement its programme, aswell as providing flanking support for social and economic reintegration of formercombatants, amnestied prisoners and victims of conflict, in selected districts throughlivelihoods assistance projects and socio-cultural initiatives. The project will be implementedon behalf of the European Union as part of its wider Aceh P eace Pro cess Support Pa ckage(APPS). The project complements EU support to justice and police reform in Aceh, supportto the organization of local elections and support for local governance reform and applicationof the New Law on Governing Aceh (2006/N. l l . n the three years ahead, theseinterventions are expected to provide crucial support to the consolidation o f peace anddemocratic governance in Aceb.

This project will also be implemented as part of the UNDP -Gol Strength ening Sustainabl eP ea ce and Devel opment Programme in c eh SSPDA) which provides support to the Gol in

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REH /2007 132-996

the implementation of the Memorandum of Understanding. The programme of work,developed in close collaboration with the government, provides complementary inputs toGol's short- to medium-term priorities. The programme is being implemented under theauspices of, and in close co nsul tation with, the National Planning Board BAPPENAS), theoffice of the Governor and the local government. The aim of the programme is to support the

Government of Indonesia in implementing the MoU with a view to securing sustainable peaceand stability in Aceh, which will contribute to wider reconstruction, recovery anddevelopment of the province. Expected outputs of the European Commission -supportedcomponents of this project are

1 Medium and long -term livelihoods support reintegration strategies are developed andincorporated into the relevant government agenc ies' policies and prog ramme s.

2 Verifie .d and officia lly acknowledged data are accessible and incorporated into thedata management systems of the relevant governmental agencies. The data verificationwi ll be done with the participation of other agencies.

3. Access to sustainab le livelihood and income opportunities for former combatants andvictims of conflict in which a minimum of 40 are women are improved.

4. Soc ial integration of former combatants and communities in selected target locationsare enhanced and potential for tensions and violence are reduced

Duration of the ac ti on 36 monthsObjec t ives o f the act ion The specific objectives of he project are to:

Partner s)

Target gr ou p s)

Exp ected res ults

1.a. Enhance capacity of BRA and other relevant agencies totarget in an inclusive and responsive manner MoU-defined

reintegration beneficiaries .

l .b. Support the incorporation of livelihoods supportreintegration strategies into the PEMDA -BAPPEDA mediumand long-term development plans.

2 Support the reintegration process of former combatants andreduce vulnerability of victims of conflict, with a special focuson women and marginalized groups, by improving access tosustainable livelihoods and income opportunities, a minimumof 2,000 selected beneficiaries from the categories defined by

BRA, with specific focus to 40 of women i.e. female headedfamilies)

BAPPENAS, BAPPEDA, BRA and other re levant governmentalagencies, Civil Society Organizations, business associationsFonner combatants, victims of conflict, with a special focus onwome n and marginalized groups within the categories of BRAbeneficiaries, BRA in the province and selected districts.I a Ca pac ity-bu ilding support to the BRA will res ult in an improvedquality of data leading to efficiency in the planning and de li very ofreintegration assistance to former combatants and victims ofconflict.

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Main activ i ties

1.5 Objectives

REH/20071132 -996

I. b Involvement o f PEMDAIBAPPEDA in all project activities willensure the incorporation of livelihoods support reintegrationstrategies into their mediwn- and long -term development planning.

2. Former combatants, amnestied political prisoners and victims o f

conflict are fully integrated into the socio -economic fabric of theircommunity through improved access to livelihood and income -generating opportunities.I) The provision of technical assistance to BRA for improvement

and verification o f data2) The provision o f extension services, training and additional

material inputs to support the livelihoods of fonner combatants,amnestied prisoners and v ictims of conflict.

The overall objective o f the project is to contribute to sustainable peace in Aceh through thereintegration of ex-combatants, amnestied prisoners and victims of conflict into the socioeconomic fabric of their communities.

Specific objectives:

I. a. Enhance capacity of BRA and other relevant agencies to target in an inclusive andresponsive manner MoU defined reintegration beneficiaries.

I. b. Support the incorporation o f livelihoods support reintegration strategies into thePEMDA-BAPPEDA medium - and long -term development plans.

2. Support the reintegration process o f former wmbatants and reduce vulnerability victims ofconflict, with a special focus on women and margina lized b TOups, by itnproving access tosustainuble livelihoods and income opportunities, (a minimum or2,000 selected beneficiariesfrom the categories defined by BRA, with specific focus to 40 o f women i.e. female headedfamilies)

1 6 Justification

Twenty months after the signing of the Helsinki MoU, an assessment of the situation in Acehis largely positive in terms of physical security and the opening of political opportunities forlocal representation and democratic elections. However, tensions at district and village stillneed to be addressed. This is considered to be critical since unemployment figures remainh igh both among former GAM members and victims of conflict.

In February 2006 the Government of Aceh established the Aceh Reintegration and PeaceAgency (Badan Reintegrasi Damai Aceh , BRA), funded by the Government (APBN), with

the mandate to implement the Government s commitment to rehabilitate public and privateproperty destroyed in the conflict, allocate suitable farming land, employment or, in case ofincapacity to work, provide adequate social security, in order to enhance reintegration as in

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REH /20071132-996

the MoU. The target groups for the reintegration mentioned in the MoU are persons involvedin GAM activities, pardoned political prisoners and civilians affected by the conflict.

BRA, headed by the Executive Director , consists of five bodies: the implementing agencyBapel BRA, the multi-stakeholder forum FORBES-DAMAI, the supervisory body Badan

Pengawas and the resource person body Badan Narasumber, in accordance with Governor sDecree 330/145/2007.

Bapel BRA is the body which executes the BRA cash compensations based on collection ofdata from the district authorities or, in the case of GAM, a list of 3,000 former combatants and6,200 non -combatants eligible for reintegration assistance was submitted to BRA. Data onvictims of conflict proved to be challenging to compile and verify . For example SRA s dataon dead and missing persons, private houses damaged and destroyed in the conflict, personswith health problems related to the conflict is still not complete. AJso, BRA has not yetdeveloped mechanism s for prioritization for the most urgent interventions. Due to the budgetdeadlines and political constraints BRA settled for cash disbursements rather than foreseenlivelihood projects for the target groups. The BRA is a temporary institution and as suchshould gradually hand over responsibilities to other relevant local governmental agencies.

The majority of the 2 BRA district offices lack clarity about their roles and responsibilitiesincluding their roles in the collection and verification of data. The district BRA offices areestablished under district regent decrees and follow individual interpretations of the roles ofthe district BRA offices. The financial responsibility of the district BRA offices is l im ited tothe allocations for rebuilding of houses.

The multi-stakeholder forum FORBES DAMAI consists of CSOs, GAM, international NG Osand representatives of the donor community. t is set up to play the role of a think-tank andprovide advisory services to Bapel BRA.

Frequent changes in leadership in the BRA have adversely affected this organization scapacity to strategically plan for medium/longer term reintegration planning, including thephasing out of the DRA, once the national budget alJocation for reintegration ends (after2007). FORBES DJ\M/ \l s role in leading the SRA s strategic thinking has also heen limitedto date. BRA has requested assistance in developing transparent implementation mechanismsthat have the support of the stakeholders in the peace process. The UNDP reintegrationproject will therefore provide technical assistance for the consolidation of data on the BRAcategories of beneficiaries in order to enhance well -targeted reintegration assistance. The

establishment of a reliable data management system on delivered assistance, pending issuesand mo st urgent needs will enable the BRA to gradually hand over responsibilities to otherrelevant local governmental agencies, and the incorporation of reintegration needs in mediumand long-term local development plans of PEMDA/BAPPEDA.

Former combatants potentially retain capacities to undermine security and stability. BRA hasasked for assistance in preventing such an eventuality by engaging the groups directly - thatis, to target the delivery of employment opportunities; in short, to help ensure the politicaldemobilization of the groups by way of enhanced socio-economic reintegration. Althoughsome former combatants have received both initial pay-outs and some financial assistance forlivelihoods from the Reintegration Fund due to the Jack of technical support in engaging in

alternative livelihoods , it appears many o f he former combatants and non-combatants are stillnot engaged in sustainable livelihood activities. Social envy between recipients and nonrecipients of BRA cash disbursements has given rise to vertical conflicts as well as deepened



REH/2007/132-996

the distrust in authorities. These factors have a destabilizing effect on the peace process.Targeted support to ensure that these groups of former combatants have timely and e ffectivesupport for alternative livelihoods options and social integration is critical to ensure thetransition from military to civilian life. The inclusion of victims of conflict in the livelihoodscomponent is important in order to avoid further social jealousy and avoid connotations of

favouring fonner armed groups.

Jn many cases the former combatants from both G M and anti-separatist groups havealready received some limited economic support from the earlier Reintegration Fund payouts but without any associated training or extension services. The BRA cash grants tend tonot be translated into meaningful livelihood activities and cash allocations to individualshave in man y cases given rise to social jealousy and distrust in authorities . In other caseseconomic support has not been sufficient to ensure the sustainability of thei r chosen postconflict livelihoods.

The UNDP project will address this challenge by providing livelihoods assistance

predominantly by providing training materia l inputs assistance to micro -credit schemes andsupport to small- and medium-sized enterprises in selected districts specifically targeting theBRA identified beneficiaries. Specific elements from the BR beneficiaries could potentiallyprove to be spoilers to the peace process . By offering appropriate livelihoods supportassistance and meaningful income opportunities the reintegration process will be strengthenedand lessen the impact of the activities of potential spo ilers. The project will also implementsome limited activities in support of social integra tion of former combatants and communitiesin selected target locations.

1.7 Description of activities

Proposed interventions:

Support fo r BRA is the centrepiece of the UNDP Aceh peace-building strategy. ct ivitiesincluded under the funding provided by the European Commission will focus on enablingBRA at both provincial and district level to carry out its mandate in an effective andaccountable manner. To supplement this institutional support as mentioned above activitiesto support the socio -economic reintegration of ex-combatants including groups noted in theMoU will be undertaken in distric ts where tensions between fonnerly conflicting parties andcommunities remain high and a threat to the on-going peace-process. The following are two

core areas which require increased attention and sustained support from a peace building andcrisis-prevention perspective:

1 Supporting Bapel BR to improve the database management system on conflictvictims and other categories of beneficiaries with the aim of increasing efficiency inplanning and delivery o f reintegration assistance. The UNDP reintegration project willprovide technical assistance for the consolidation of data on the BRA categories ofbeneficiarie s in order to enhance well-targeted r e integration assistance.

2. Providing market -driven and sustainable income opportunities to fonner combatantsand victims of conflict including female headed households that are now demanding

economic support such as livelihood opportunities access to markets and vocationalskills development. Bapel BRA PEMDNB PPED and other relevant governmental

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agenc ies and business associations wi be involved in the livelihoods component toensure sustainability.

l Support for apel BR

UNDP will provide technical assistance to Bapel BRA with a special focus on data collection,ver ificat ion and maintenance o f he database on the BRA beneficiaries.

The data should be compiled, pooled, crosschecked and verified by d ho verification teamsconsisting of, for example, district BRA in coope ration with relevant governmental agenciesas well as the GAM-fo rmed Aceh Tran sition Commit1ee, Komite Peralihan Aceh (KPA) andre levant civil society organiz ation s. Furthermore, the improved quality of the verified datawill enhance PEMDAJBAPPEDA s capacity to include livelihoods support reintegrationstrategies into their medium- and long-term plans.

In order for Bapel BRA to deliver services to beneficiaries at an optimum level, the capacityof BRA need to be enhanced in terms of human resources through trainings, workshops andprovision of management supp rt and teclmical assistance in data management, processrelated issues, development of monitoring systems and set up of verification team.

The Bapel BRA is structur ed in a way that the Bapel BRA district offices are an extension ofthe Bapel BRA provincial level entity, and are responsible for supporting the implementationof the reintegration funds n each district in collaboration with the related local governmentagency (Dinas). The task of the BRA district offices includes collec ting data on beneficiariesand monitoring the delivery o f assistance to individuals and communities. The district BRA

offices only channel reintegration funds for housing rehabilitation , while other elements ofassistance are the responsibility of the Bapel BRA (Provincial Social Affairs Department isresponsible for the transactions of gran ts disbursements to the beneficiaries). Through thisproject, the BRA district offices and related goverrunent agencies will be supported by d ho

verification teams and will play a critical role in ensuring the del ivery of reintegrationassistance from the reintegration fund in a transparent and accountab le manner.

By involving the re levant governmental agencies the project will enhance the capacity of localgovernment, which will continue implementing programmes that are linked to reintegration(such as health programmes, social services etc) once national funding for reintegration ends(expected by 2008).

Teclm ical assistance to Bapel BRA will be provided as follows:

I Combined data verification and needs assessment:

The data compilation and needs assessment of victims of the conflict is not completed andexisting data needs to be clarified. Technjcal assistance (TA) to Bapel BRA will beprovided to ensure that the quality of the data on BRA beneficiaries is improved so thatthese groups and individuals can be better targeted by future projects. The management ofthe data should be the responsibility of BRA and related goverrunenta l agencies, such asBAPPEDA and Badan Pengelola Data Elektronik (BPDE). The data should cover types of

losses suffered as well as the persons current health and socio-economic situation. Thedata will be verified by d ho verification teams consisting of Bapel BRA, KP A, relevantcivil society organizations as well as a professional on data collection. The TA on data

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REH/2007/132-996

management will also include training on updating and management of the data. Specialattention will be paid to ensure that women who have suffered losses and are affected bythe conflict are included in the data. Livelihoods and gender expertise will assist BapelBRA in monitoring the economic benefits their programmes are providing to beneficiariesand ensuring that the needs of women are being appropriately addressed. While the gender

component is not included under the EC element o f the project, gender TA provided byUNDP from other sources will support these efforts.

Data comp ilation:

Steps and measures of data compilation:

step I development of collection and verification mechanisms. This will involve thedefinition of categories of victims of conflict;

step 2) actual verification and data collection. This will include the recruitment and

deployment of d hoc verification teams, who possess specific skills to identify thetypes of victims.

Needs assessment:

The needs assessment aspect will include the victims of conflict current economic,social and health situation, to enable better targeted assistance in the future. Theassessment should take into account the IOM Psycho-social Needs Assessment 2006and 2007) and the World Bank GAM Needs Assessment 2005).

The MIS Technical Assistant provided under this project and the Communications TechnicalAssistant, provided from other funds, are responsible for coordinating with Bapel BRA on thepreparation and implementation of the data verification and needs assessment. They willproduce a final report on the findings.

Implementation is expected lo be undertaken during the first year of the project

Preparation - 3 months: Preparation activities will include: a) pooling of existing datafrom various sources Dinas Sosial, Dinas Kesehatan; Badan Pengelola DataElektronik; World Bank, IOM, GTZ Kontras , other local civil society, BRR, BPSNAO , Biro Pemberdayaan Perempuan NAO, BAPPEDA NAO, Dinas Pertanian,

Dinas Peindustrian dan Perdagangan, KADIN NAO). ; b) workshops on identifyingthe categories; c recruitment of the d ho verification teams in cooperation with thedistrict BRA offices; d) training of the d ho verification teams to be deployed in the17 districts.

Field Verification - 3 months: all districts will be covered by verification teamscomprising of teams of 3-4 members such as KPA, local civil society organizations ,District BRA. Depending on the number of villages per district, an average of threeverification teams will cover one district.

Data insertion and compilation: the d ho verification teams are responsible for

inserting the data in the Bapel BRA database, under the supervision of the MISTechnical Assistant.

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The data will be compiled in the Bapel BR database managed by Badan Pcngeloloan DataElektronik. The data will provide programme opportunities for governmental agencies aswell as local and international actors in support of the medium- and long-term reintegrationand development process.

2, The provision of livelihoods/economic enhancement assistance (training, extensionservices, some material inputs, access to financial services) for beneficiaries from thecategories identified by BRA former combatants, victims of conflict and othervulnerab le groups)

The former combatants and victims of conflict, as well as the selected districts where thepotential for violent conflict remains high and could interfere with the peace-process, will beidentified as priority groups for support in collaboration with BRA, PEMDA, KPA and otherrelevant organizations. In many cases, the former combatants from both GAM and antiseparatist groups have already received some limited economic support from the earlierReintegration Fund pay-outs, but without any associated training or extension services. In

other cases, economic support has not been sufficient to ensure the sustainability of theirchosen post-conflict liv elihoods .

Districts will be selected on the basis of indicators including: poverty leve ls , number ofincidents, conflict intensity, livelihood in terventions, including post-tsunami (since somepost-tsunami programmes tend to also include limited number of ex-combatants and otherBR beneficiaries). The sdection of individual beneficiaries will be undertaken inconsultation with BRA, KP A etc. Beneficiaries should be identified based on a do no harmand gender balanced analysis. To ensure that the implementing organization can apply thisapproach, a sensitisation workshop will be conducted by UNDP including gender and do noharm elements. The selection of districts as well as mechanisms for identifying the individua ltargeted beneficiaries will be approved by the Project Steering Committee.

Throup,h sustainab le and market-driven economic activities, the r ~ j e twill support the socialand economic re in tegration o f a minimun1 of 2,000 fonner combatants and victims of conflict ,with a special focus on women, in selected districts. To enhance prospects fo r sustainability,the project will also he li nked to the local government's medium· and lon g-term economic

development goals. Livelihoods support will target those beneficiaries that are excluded fromexist ing support programmes, or where support has heen inadequate, to enahle them to realisethe benefits of assistance already provided. For example, UNDP, working with ILO, hasdeveloped training modules for farmers, fishermen and small business owners to better

manage their business.

As the assistance to beneficia ries is immediate and must enable them to establish a livelihoodbased on the existing market and support frameworks the livelihoods programme shouldutilise existing resources and capab iliti es. Longer-term economic development andli velihoods programmes, as being developed by BRR, Local Government and the MDFshould ensure conflict-affected communities have access to opportunities to developlivelihoods over the longer term. Assistance should therefore be targeted to the beneficiary'sexisting ski lls and knowledge, the existing market opportunities and the locations in whichthey are re-establishing their livelihoods. The assistance will enable beneficiaries to quicklyestablish an income stream to meet the ir family 's financi&I needs.

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The livelihood assistance will encompass:

Tra ining on assessment of entrepreneurial ideas, market assessment and sectorassessm ent , appropriate for the particular district for some participants alsotraining of trainers) for individual s, groups or cooperatives or small and medium

sized enterprises;Coaching process, assistance with business start-up, linkages to financial servicesmicro-finance in stitutions);

Capacity building for partners: BRA, BAPPEDA , Chambers of Commerce,business associations, relevant government agencies, established small andmedi urn sized enterprises etc.;Capacity building for micro finance institutions, so that financial services areavailable throughout the project and increase the access to financial services;Financia l assistance to micro finance institutions.

As a result of the Tsunami response a significant number of microfinance institutions MFis)have been established by NGOs, BRR and donors with varying degrees of success. However,there are a number of successful MFls now emerging, capable of implementing a sustainablemicrofinance programme. For example, the UNDP/ILO support to Baitul QiradhBaiturralunan BQB - Islamic micro-finance/cooperative institution based in Banda Aceh) in

providing targeted assistance to women in Aceh to establish small enterprises. Assistance forBQB to ex pand to new locations to better meet the needs of conflict-affected commun ities canbe mobilised in a relatively short timeframe.

Util isin g UNDP s existing livelihood programme in Aceh can facilitate the expansion andimplementation of livelihood support in a relatively short timeframe. Local NGOs that have

demonstrated successful implementation of livelihoods programmes can be quickly contractedto implem ent. UNDP s Civil Society Organisation Strengthening programme is alreadyproviding support to ex-combatants to re-establish farming operations in Pidie. In areas wherethere are a large number of potential beneficiaries UNDP can contract experienced largerintern ational or national organisations to implement livelihood activities, providing a scope ofservices clearly defining the target population and the needs of this population. In thehighlands, UNDP s coffet: prograrrune Aceh Prugrarrune for Ecunumit: D evdupmt::nl , furn Jed

by the Decentralisat ion Support Facility) can quickly support fanners who want to reestablish or establish coffee enterprises through the provision of extension advice, plantingmaterials and access to markets. APED is expanding to assist cocoa farmers in the coastaldistricts of North East Aceh, including Pidie and Aceh Utara.

The livelihoods element of the programme should be implemented in only a few districts toensure the largest number of beneficiaries can be supported as efficiently as possible. Districtselection criteria includes incidence of poverty in the district, incidence of continued crime inthe district, the impact o f the conflict on livelihoods and absence of support by otherprogrammes to support livelihoods. Attachment I outlines a prelimin ry analysis of districtsbased on these criteria. The analysis suggests the main districts that should be considered forlivelihoods assistance are Aceh Utara, Bener Meriah, Aceh Timur, Aceh Tengah and Pidie.Target populations will be identified in each of the above districts in the first two months ofthe Project.

The live lihood project should also be coordinated and take into consideration the BRRJMDFinfras truc ture project for Aceh so that the access to markets for the project members can be

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support to bra & peace building in aceh

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