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Rebuilding Communities in Indonesia

In response to the massive tsunami and earthquake that struck Indonesia, the Aceh Technical Assistance Recovery Project helped rebuild communities and increased government capacity to respond to future disasters.
​USAID, like other government aid agencies around the world, stepped in to help rebuild the disaster-affected region after the tsunami and earthquake that devastated the lives of hundreds of thousands in southeast Asia. The Aceh Technical Assistance Recovery Project became a vital component of this support and was implemented by Chemonics. Operating from May 2005 to May 2008, this project was designed to provide technical assistance to help rebuild the communities of Aceh and Nias. Responding to the needs of the government of Indonesia, the project provided assistance to strengthen democratization and support the peace process in Aceh and worked to bolster economic growth and counter corruption in Jakarta-based government institutions.
Groundbreaking ceremony for new house construction in Lamjabat Village, Banda Aceh.
Just months after the tsunami, the Indonesian government formulated a plan for the rehabilitation and reconstruction of Acehand Nias, which established the Badan Rehabilitasi dan Rekonstruksi (Agency for the Rehabilitation and Reconstruction. The agency, later supported by the project, was the designated government agency to manage a $7 billion disaster recovery program. Chemonics worked with the agency, recovery program partners, the government of Aceh, and businesses to help build a prosperous, vital economic future for the region. The project linked Acehnese farmers and fishermen to new markets, resulting in better prices for their products, in addition to creating a $50 million facility to fund economic development projects.
Using the first community-drive approach to planning in Indonesia, Chemonics helped develop village mapping and infrastructure guidelines and through their implementation, 33 villages completed spatial plans. Additionally, Chemonics helped formally establish the Aceh Joint Forum to Support Peace in 2005, which serves as a policy think-tank for the government after the landmark peace agreement between the government of Indonesia and the Free Aceh Movement.
Project Results:
  • Resolved 1,348 out of 1,372 of complaints to the government anticorruption unit
  • Facilitated purchase of 98 percent of land needed to built the West Coast Highway, an essential transportation route
  • Created a $50 million facility to fund economic development projects

Economic Indicators:

  • Direct investment rose 346%, from $5.6 billion to $25 billion.
  • The Indonesia Stock Exchange Index jumped 229%, from 850 to 2,800.
  • Gross domestic product increased 121%, from $165 billion to $365 billion.
  • Exports grew 72%, from $69 billion to $119 billion.
  • Per capita income rose 64%, from $1,130 to $1,850.
  • Currency reserves increased 53%, from $36 billion to $55 billion.
  • Government debt as percentage of gross domestic product fell 29%, from 52% to 37%.


Final Report

Project Duration: 2005 - 2008.


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