REH/2007/ 132-996

Annex I

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

REH/20071132-996

I.

THE ACTION Description Title

1.
1.1

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 u1c, of total eligible cost of action t.be Contractin2 Authority action EUR 2,450,000 94.19% EUR 2,601,057 1.4 Summary

On 151h 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 armed conflict. In the MoU chapter 3.2 it is stated that the Gol and the authorities of Aceh will take measures to assist persons who have participated in GAM activities, pardoned political prisoners and victims of conflict to facilitate their reintegration into society. This includes political, social and economic reintegration. Gol and GAM agreed that a reintegration ftmd would be established under the administration of Aceh but based on national funding. In February 2006 the Aceh Reintegration and Peace Agency (BRA) was established to carry out this mandate. The goal of this project is to contribute to the consolidation of peace in Aceh by providing technical 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, as well as providing flanking support for social and economic reintegration of former combatants, amnestied prisoners and victims of conflict, in selected districts through livelihoods assistance projects and socio-cultural initiatives. The project will be implemented on behalf of the European Union as part of its wider Aceh Peace Process Support Package (APPS). The project complements EU support to justice and police reform in Aceh, support to the organization of local elections and support for local governance reform and application of the New Law on Governing Aceh (2006/N. ll). In the three years ahead, these interventions are expected to provide crucial support to the consolidation of peace and democratic governance in Aceb. This project will also be implemented as part of the UNDP-Gol Strengthening Sustainable Peace and Development Programme in Aceh (SSPDA) which provides support to the Gol in

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 to Gol's short- to medium-term priorities. The programme is being implemented under the auspices of, and in close consultation with, the National Planning Board (BAPPENAS), the office 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 peace and stability in Aceh, which will contribute to wider reconstruction, recovery and development of the province. Expected outputs of the European Commission-supported components of this project are 1. Medium and long-term livelihoods support reintegration strategies are developed and incorporated into the relevant government agencies' policies and programmes. 2. Verifie.d and officially acknowledged data are accessible and incorporated into the data management systems of the relevant governmental agencies. The data verification will be done with the participation of other agencies. 3. Access to sustainable livelihood and income opportunities for former combatants and victims of conflict in which a minimum of 40% are women are improved. 4. Social integration of former combatants and communities in selected target locations are enhanced and potential for tensions and violence are reduced

Duration of the action Objectives of the action

36 months The specific objectives of the project are to:

1.a. Enhance capacity of BRA and other relevant agencies to target in an inclusive and responsive manner MoU-defined reintegration beneficiaries. l .b. Support the incorporation of livelihoods support reintegration strategies into the PEMDA-BAPPEDA mediumand long-term development plans. 2. Support the reintegration process of former combatants and reduce vulnerability of victims of conflict, with a special focus on women and marginalized groups, by improving access to sustainable livelihoods and income opportunities, (a minimum of 2,000 selected beneficiaries from the categories defined by BRA, with specific focus to 40% of women i.e. female headed families)
Partner(s) Target group(s) BAPPENAS, BAPPEDA, BRA and other relevant governmental agencies, Civil Society Organizations, business associations Fonner combatants, victims of conflict, with a special focus on women and marginalized groups within the categories of BRA beneficiaries, BRA in the province and selected districts. I a. Capacity-building support to the BRA will result in an improved quality of data leading to efficiency in the planning and delivery of reintegration assistance to former combatants and victims of conflict.

Expected results

REH/20071132-996 I. b Involvement of PEMDAIBAPPEDA in all project activities will ensure the incorporation of livelihoods support reintegration strategies into their mediwn- and long-term development planning. 2. Former combatants, amnestied political prisoners and victims of conflict are fully integrated into the socio-economic fabric of their community through improved access to livelihood and income generating opportunities. I) The provision of technical assistance to BRA for improvement and verification of data 2) The provision of extension services, training and additional material inputs to support the livelihoods of fonner combatants, amnestied prisoners and victims of conflict.

Main activities

1.5

Objectives

The overall objective of the project is to contribute to sustainable peace in Aceh through the reintegration 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 and responsive manner MoU defined reintegration beneficiaries. I. b. Support the incorporation of livelihoods support reintegration strategies into the PEMDA-BAPPEDA medium- and long-term development plans. 2. Support the reintegration process of former wmbatants and reduce vulnerability victims of conflict, with a special focus on women and marginalized b'TOups, by itnproving access to sustainuble livelihoods and income opportunities, (a minimum or 2,000 selected beneficiaries from the categories defined by BRA, with specific focus to 40% of women i.e. female headed families)

1.6

Justification

Twenty months after the signing of the Helsinki MoU, an assessment of the situation in Aceh is largely positive in terms of physical security and the opening of political opportunities for local representation and democratic elections. However, tensions at district and village still need to be addressed. This is considered to be critical since unemployment figures remain high both among former GAM members and victims of conflict. In February 2006 the Government of Aceh established the Aceh Reintegration and Peace Agency (Badan Reintegrasi Damai Aceh, BRA), funded by the Government (APBN), with the mandate to implement the Government's commitment to rehabilitate public and private property destroyed in the conflict, allocate suitable farming land, employment or, in case of incapacity to work, provide adequate social security, in order to enhance reintegration as in

REH/20071132-996 the MoU. The target groups for the reintegration mentioned in the MoU are persons involved in GAM activities, pardoned political prisoners and civilians affected by the conflict. BRA, headed by the Executive Director, consists of five bodies: the implementing agency Bapel BRA, the multi-stakeholder forum FORBES-DAMAI, the supervisory body Badan Pengawas and the resource person body Badan Narasumber, in accordance with Governor's Decree 330/145/2007. Bapel BRA is the body which executes the BRA cash compensations based on collection of data from the district authorities or, in the case of GAM, a list of 3,000 former combatants and 6,200 non-combatants eligible for reintegration assistance was submitted to BRA. Data on victims of conflict proved to be challenging to compile and verify. For example SRA's data on dead and missing persons, private houses damaged and destroyed in the conflict, persons with health problems related to the conflict is still not complete. AJso, BRA has not yet developed mechanisms for prioritization for the most urgent interventions. Due to the budget deadlines and political constraints BRA settled for cash disbursements rather than foreseen livelihood projects for the target groups. The BRA is a temporary institution and as such should gradually hand over responsibilities to other relevant local governmental agencies. The majority of the 21 BRA district offices lack clarity about their roles and responsibilities including their roles in the collection and verification of data. The district BRA offices are established under district regent decrees and follow individual interpretations of the roles of the district BRA offices. The financial responsibility of the district BRA offices is limited to the allocations for rebuilding of houses. The multi-stakeholder forum FORBES DAMAI consists of CSOs, GAM, international NG Os and representatives of the donor community. It is set up to play the role of a think-tank and provide advisory services to Bapel BRA. Frequent changes in leadership in the BRA have adversely affected this organization's capacity to strategically plan for medium/longer term reintegration planning, including the phasing out of the DRA, once the national budget alJocation for reintegration ends (after 2007). FORBES DJ\M/\l's role in leading the SRA's strategic thinking has also heen limited to date. BRA has requested assistance in developing transparent implementation mechanisms that have the support of the stakeholders in the peace process. The UNDP reintegration project will therefore provide technical assistance for the consolidation of data on the BRA categories of beneficiaries in order to enhance well-targeted reintegration assistance. The establishment of a reliable data management system on delivered assistance, pending issues and most urgent needs will enable the BRA to gradually hand over responsibilities to other relevant 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 has asked for assistance in preventing such an eventuality by engaging the groups directly - that is, to target the delivery of employment opportunities; in short, to help ensure the political demobilization of the groups by way of enhanced socio-economic reintegration. Although some former combatants have received both initial pay-outs and some financial assistance for livelihoods from the Reintegration Fund due to the Jack of technical support in engaging in alternative livelihoods, it appears many of the former combatants and non-combatants are still not 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
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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 effective support for alternative livelihoods options and social integration is critical to ensure the transition from military to civilian life. The inclusion of victims of conflict in the livelihoods component 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 GAM and anti-separatist groups have already received some limited economic support from the earlier Reintegration Fund payouts, but without any associated training or extension services. The BRA cash grants tend to not be translated into meaningful livelihood activities, and cash allocations to individuals have, in many cases, given rise to social jealousy and distrust in authorities. In other cases, economic support has not been sufficient to ensure the sustainability of their chosen postconflict livelihoods. The UNDP project will address this challenge by providing livelihoods assistance, predominantly by providing training, material inputs, assistance to micro-credit schemes, and support to small- and medium-sized enterprises in selected districts, specifically targeting the BRA identified beneficiaries. Specific elements from the BRA beneficiaries could potentially prove to be spoilers to the peace process. By offering appropriate livelihoods support assistance and meaningful income opportunities the reintegration process will be strengthened and lessen the impact of the activities of potential spoilers. The project will also implement some limited activities in support of social integration of former combatants and communities in selected target locations.

1. 7 Description of activities

Proposed interventions:
Support for BRA is the centrepiece of the UNDP Aceh peace-building strategy. Activities included under the funding provided by the European Commission will focus on enabling BRA at both provincial and district level to carry out its mandate in an effective and accountable manner. To supplement this institutional support, as mentioned above, activities to support the socio-economic reintegration of ex-combatants including groups noted in the MoU will be undertaken in districts where tensions between fonnerly conflicting parties and communities 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 and crisis-prevention perspective: 1. Supporting Bapel BRA to improve the database management system on conflict victims and other categories of beneficiaries, with the aim of increasing efficiency in planning and delivery of reintegration assistance. The UNDP reintegration project will provide technical assistance for the consolidation of data on the BRA categories of beneficiaries in order to enhance well-targeted reintegration assistance. 2. Providing market-driven and sustainable income opportunities to fonner combatants and victims of conflict, including female headed households, that are now demanding economic support such as livelihood opportunities, access to markets, and vocational skills development. Bapel BRA, PEMDNBAPPEDA and other relevant governmental

REH/2007/132-996 agencies and business associations wi11 be involved in the livelihoods component to ensure sustainability.

l. Support for Bapel BRA

UNDP will provide technical assistance to Bapel BRA with a special focus on data collection, verification and maintenance of the database on the BRA beneficiaries. The data should be compiled, pooled, crosschecked and verified by ad hoc verification teams consisting of, for example, district BRA in cooperation with relevant governmental agencies as well as the GAM-formed Aceh Transition Commit1ee, Komite Peralihan Aceh (KPA) and relevant civil society organizations. Furthermore, the improved quality of the verified data will enhance PEMDAJBAPPEDA's capacity to include livelihoods support reintegration strategies into their medium- and long-term plans. In order for Bapel BRA to deliver services to beneficiaries at an optimum level, the capacity of BRA need to be enhanced in terms of human resources through trainings, workshops and provision of management support and teclmical assistance in data management, process related issues, development of monitoring systems and set up of verification team. The Bapel BRA is structured in a way that the Bapel BRA district offices are an extension of the Bapel BRA provincial level entity, and are responsible for supporting the implementation of the reintegration funds in each district in collaboration with the related local government agency (Dinas). The task of the BRA district offices includes collecting data on beneficiaries and monitoring the delivery of assistance to individuals and communities. The district BRA offices only channel reintegration funds for housing rehabilitation, while other elements of assistance are the responsibility of the Bapel BRA (Provincial Social Affairs Department is responsible for the transactions of grants disbursements to the beneficiaries). Through this project, the BRA district offices and related goverrunent agencies will be supported by ad hoc verification teams and will play a critical role in ensuring the delivery of reintegration assistance from the reintegration fund in a transparent and accountable manner. By involving the relevant governmental agencies the project will enhance the capacity of local government, 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). Teclmical 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 and existing data needs to be clarified. Technjcal assistance (TA) to Bapel BRA will be provided to ensure that the quality of the data on BRA beneficiaries is improved so that these groups and individuals can be better targeted by future projects. The management of the data should be the responsibility of BRA and related goverrunental agencies, such as BAPPEDA 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. The data will be verified by ad hoc verification teams consisting of Bapel BRA, KP A, relevant civil 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. Special attention will be paid to ensure that women who have suffered losses and are affected by the conflict are included in the data. Livelihoods and gender expertise will assist Bapel BRA in monitoring the economic benefits their programmes are providing to beneficiaries and ensuring that the needs of women are being appropriately addressed. While the gender component is not included under the EC element of the project, gender TA provided by UNDP from other sources will support these efforts. Data compilation: Steps and measures of data compilation: step I) development of collection and verification mechanisms. This will involve the definition of categories of victims of conflict; step 2) actual verification and data collection. This will include the recruitment and deployment of ad hoc verification teams, who possess specific skills to identify the types 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. The assessment should take into account the IOM Psycho-social Needs Assessment (2006 and 2007) and the World Bank GAM Needs Assessment (2005).

The MIS Technical Assistant provided under this project and the Communications Technical Assistant, provided from other funds, are responsible for coordinating with Bapel BRA on the preparation and implementation of the data verification and needs assessment. They will produce 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 data from various sources (Dinas Sosial, Dinas Kesehatan; Badan Pengelola Data Elektronik; World Bank, IOM, GTZ Kontras, other local civil society, BRR, BPS NAO, Biro Pemberdayaan Perempuan NAO, BAPPEDA NAO, Dinas Pertanian, Dinas Peindustrian dan Perdagangan, KADIN NAO). ; b) workshops on identifying the categories; c) recruitment of the ad hoc verification teams in cooperation with the district BRA offices; d) training of the ad hoc verification teams to be deployed in the 17 districts. Field Verification - 3 months: all districts will be covered by verification teams comprising 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 three verification teams will cover one district. Data insertion and compilation: the ad hoc verification teams are responsible for inserting the data in the Bapel BRA database, under the supervision of the MIS Technical Assistant.

REH/2007/132-996 The data will be compiled in the Bapel BRA database managed by Badan Pcngeloloan Data Elektronik. The data will provide programme opportunities for governmental agencies as well as local and international actors in support of the medium- and long-term reintegration and development process.

2, The provision of livelihoods/economic enhancement assistance (training, extension services, some material inputs, access to financial services) for beneficiaries from the categories identified by BRA (former combatants, victims of conflict and other vulnerable groups)
The former combatants and victims of conflict, as well as the selected districts where the potential for violent conflict remains high and could interfere with the peace-process, will be identified as priority groups for support in collaboration with BRA, PEMDA, KPA and other relevant organizations. In many cases, the former combatants from both GAM and antiseparatist groups have already received some limited economic support from the earlier Reintegration 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 their chosen post-conflict livelihoods. Districts will be selected on the basis of indicators including: poverty levels, number of incidents, conflict intensity, livelihood interventions, including post-tsunami (since some post-tsunami programmes tend to also include limited number of ex-combatants and other BRA beneficiaries). The sdection of individual beneficiaries will be undertaken in consultation with BRA, KP A, etc. Beneficiaries should be identified based on a "do no harm" and gender balanced analysis. To ensure that the implementing organization can apply this approach, a sensitisation workshop will be conducted by UNDP including gender and do no harm elements. The selection of districts as well as mechanisms for identifying the individual targeted beneficiaries will be approved by the Project Steering Committee. Throup,h sustainable and market-driven economic activities, the pr~ject will support the social and economic reintegration of a minimun1 of 2,000 fonner combatants and victims of conflict, with a special focus on women, in selected districts. To enhance prospects for sustainability, the project will also he linked to the local government's medium and long-term economic development goals. Livelihoods support will target those beneficiaries that are excluded from existing support programmes, or where support has heen inadequate, to enahle them to realise the benefits of assistance already provided. For example, UNDP, working with ILO, has developed training modules for farmers, fishermen and small business owners to better manage their business. As the assistance to beneficiaries is immediate and must enable them to establish a livelihood based on the existing market and support frameworks the livelihoods programme should utilise existing resources and capabilities. Longer-term economic development and livelihoods programmes, as being developed by BRR, Local Government and the MDF should ensure conflict-affected communities have access to opportunities to develop livelihoods over the longer term. Assistance should therefore be targeted to the beneficiary's existing skills and knowledge, the existing market opportunities and the locations in which they are re-establishing their livelihoods. The assistance will enable beneficiaries to quickly establish an income stream to meet their family's financi&I needs.

REH/2007/132-996 The livelihood assistance will encompass: Training on assessment of entrepreneurial ideas, market assessment and sector assessment, appropriate for the particular district (for some participants also training of trainers) for individuals, groups or cooperatives or small and mediumsized enterprises; Coaching process, assistance with business start-up, linkages to financial services (micro-finance institutions); Capacity building for partners: BRA, BAPPEDA, Chambers of Commerce, business associations, relevant government agencies, established small and medi urn sized enterprises1 etc.; Capacity building for micro finance institutions, so that financial services are available throughout the project and increase the access to financial services; Financial 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 sustainable microfinance programme. For example, the UNDP/ILO support to Baitul Qiradh Baiturralunan (BQB - Islamic micro-finance/cooperative institution based in Banda Aceh) in providing targeted assistance to women in Aceh to establish small enterprises. Assistance for BQB to expand to new locations to better meet the needs of conflict-affected communities can be mobilised in a relatively short timeframe. Utilising UNDP's existing livelihood programme in Aceh can facilitate the expansion and implementation of livelihood support in a relatively short timeframe. Local NGOs that have demonstrated successful implementation of livelihoods programmes can be quickly contracted to implement. UNDP's Civil Society Organisation Strengthening programme is already providing support to ex-combatants to re-establish farming operations in Pidie. In areas where there are a large number of potential beneficiaries UNDP can contract experienced larger international or national organisations to implement livelihood activities, providing a scope of services clearly defining the target population and the needs of this population. In the highlands, UNDP's coffet: prograrrune (Aceh Prugrarrune for Ecunumit: Devdupmt::nl, furn.Jed by the Decentralisation Support Facility) can quickly support fanners who want to reestablish or establish coffee enterprises through the provision of extension advice, planting materials and access to markets. APED is expanding to assist cocoa farmers in the coastal districts of North East Aceh, including Pidie and Aceh Utara. The livelihoods element of the programme should be implemented in only a few districts to ensure the largest number of beneficiaries can be supported as efficiently as possible. District selection criteria includes incidence of poverty in the district, incidence of continued crime in the district, the impact of the conflict on livelihoods and absence of support by other programmes to support livelihoods. Attachment I outlines a preliminary analysis of districts based on these criteria. The analysis suggests the main districts that should be considered for livelihoods 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 of the Project. The livelihood project should also be coordinated and take into consideration the BRRJMDF infrastructure project for Aceh so that the access to markets for the project members can be

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