Aceh disaster management a 'test' to lure investors<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
The government's ability to handle unprecedented relief
\noperations and channel donations from the international community
\nto tsunami victims in Aceh will be a crucial test for convincing
\npotential investors to put their money in the country.<\/p>\n
\"They (the investors) want to see how do we manage the
\nsituation, whether with confidence or confusion,\" State Minister
\nfor National Development Planning\/Chairwoman of the National
\nDevelopment and Planing Agency (Bappeans) Sri Mulyani Indrawati
\nsaid on the sidelines of the two-day Infrastructure Summit 2005
\non Monday.<\/p>\n
She said there were three important issues that should be
\naddressed by the government in Aceh. First, the establishment of
\nan efficient management structure where all relief efforts in
\nAceh and North Sumatra are directly supervised by the President.<\/p>\n
Second, the government has to secure international confidence
\nby establishing a management structure that ensures
\naccountability and guarantees that all funds are directed to
\ndisaster areas.<\/p>\n
The third is a financial element, where \"on-budget\" relief
\nfunds received directly by the government are coordinated by the
\ngovernment, while \"off-budget\" funds, or donations through non-
\ngovernmental organizations given directly to the victims, are
\nmonitored through a soon-to-be-established system. This system
\nwill enable everybody to know who is financing what project,
\nMulyani said.<\/p>\n
After a massive undersea earthquake and ensuing tsunamis hit
\ncountries around the Indian Ocean, nations around the world
\nlaunched a humanitarian relief operation that is the largest in
\nliving memory. Countries, individuals and donor institutions have
\npledged nearly US$8 billion in funds to help victims of the
\ntragedy and tsunami-affected areas rebuild.<\/p>\n
A large part of the funds are likely to go to Indonesia, which
\nbore the brunt of the tsunami with at least 115,000 deaths.<\/p>\n
The unprecedented outpouring of aid, however, has raised
\nconcern of the possibility of abuse of the funds. Indonesia in
\nparticular has a poor record with regards to corruption.<\/p>\n
The government has said it will need at least $4 billion to
\nrebuild homes and infrastructure in the devastated Aceh.<\/p>\n
Mulyani said the government's efforts in Aceh are basically
\ndivided into three stages: emergency, rehabilitation and
\nreconstruction.<\/p>\n
\"We predict the emergency stage will last for the next six to
\n12 months,\" she said.<\/p>\n
She said the most urgent need now was the construction of
\ntemporary shelters for displaced persons.<\/p>\n
The rehabilitation stage will dominate the activity in Aceh
\nfor another 18 months, she said. Finally, the reconstruction
\nstage will continue for at least the next five years. This stage
\ncould include the construction of 500,000 permanent houses at a
\ncost of about Rp 3 trillion (about $326 million).<\/p>",
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