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06JAKARTA1141 2006-01-27 11:33:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Jakarta
Cable title:  

ACEH: ADDITIONAL FUNDING REQUEST FOR GOI-GAM PEACE

Tags:   EAID PGOV PREL PHUM MARR ID 
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					  UNCLAS  JAKARTA 001141 

SIPDIS


SENSITIVE

E.O. 12958: N/A
TAGS: EAID PGOV PREL PHUM MARR ID
SUBJECT: ACEH: ADDITIONAL FUNDING REQUEST FOR GOI-GAM PEACE
AGREEMENT IMPLEMENTATION PROGRAMS

REF: A. JAKARTA 0654

B. 05 JAKARTA 015331

-------
Summary
-------



1. (SBU) The Aceh peace process remains on track and now
moves into a more difficult phase in which the parties begin
to develop the parameters of political participation in a
normalized Aceh to give voice to all of Acehenese society.
Acehenese trust the USG as an honest broker because of our
consistent commitment to finding and implementing an
equitable peace -- which we have done politically but also
with effective assistance programs made possible by
Washington's prompt allocation of funds following the signing
of the GOI-GAM MOU August 15. We now require $30 million in
additional funding over the next two years to ensure that the
USG remains engaged to provide longer-term support for peace
in Aceh.



2. (SBU) Funding would include $10 million in supplemental
ESF funds in both FY 06 and FY 07, with USAID providing an
additional $5 million in both FY 06 and FY 07 out of its DDG
budget. We require the additional $30 million to ensure that
the USG can support longer-term reintegration and
peace-building programs, as well as support key political
processes and provide technical assistance and capacity
building to key local institutions. Such funding would
enable us to provide basic capacity for a GAM representative
office, support for local direct elections, and a flexible,
quick response mechanism to address unanticipated problems.
Of this amount, $1.5 million would support continuation of
ongoing ICITAP police training and human rights initiatives.
Consulate Medan would join USAID and ICITAP in implementing
Aceh programs. End Summary.



--------------------------


Status of Peace Process


--------------------------





3. (SBU) As of December 31, 2005, the GOI and GAM met all
disarmament and redeployment targets set out in the MOU. To
date, the Aceh Monitoring Mission (AMM) has accepted,
verified, and destroyed 840 GAM weapons. The Indonesian
Armed Forces (TNI) redeployed some 14,700 non-locally based
troops, and Indonesian National Police (INP) some 9,100
troops, to outside of Aceh. On December 27, the Free Aceh
Movement (GAM) disbanded its armed wing, the Tentara Nasional
Acheh (Aceh National Army) and proclaimed establishment of a
"reintegration committee" which might become the vehicle for
GAM to become a political party.



4. (SBU) The decommissioning of weapons and the redeployment
of non-organic forces out of Aceh represent only the first
hurdles in the process to secure peace and fulfill the
delicate political commitments called for in the GOI-GAM MOU.
In accord with the MOU, the GOI will submit a Draft Law on
the Governing of Aceh (Rancangan Undang-Undang Tentang
Pemerintahan Aceh, or RUU Aceh) to the Indonesian Parliament
(DPR) this month. AMM has played a key role in implementing
the MOU and the GOI has invited AMM to stay on for an
additional 3 months, at lower personnel levels, beyond its
current March 15 completion date. AMM will remain in Aceh
through the local elections.



5. (SBU) Reintegration continues apace throughout the
province in varying degrees. Cooperation between GAM
representatives and provincial government officials remains
high and both stakeholder groups have begun to further invest
in the peace process. Provincial government continues to
reach out slowly to civil society and the donor community
through various mechanisms and informal consultations.
Official "reintegration programs" remain in the starting-up
phase. The GOI has budgeted $50 million in 2006 to provide
direct support to targeted beneficiaries.



--------------------------

--
$9.825 M Supplemental ESF Funds Fully Committed


--------------------------

--



6. (SBU) The AID mission has programmed $9,825,000 in
supplemental ESF funds to support the ongoing peace process

-- $825,000 in initial support and a further $9,000,000 in
supplemental ESF. These funds proved crucial in launching
USG-funded support for socialization of the MOU and
jump-starting the reintegration process. USG programs have
had a significant impact on the political and social
stability of Aceh since the MOU.



7. (SBU) We spent an initial tranche of $825,000 on
immediate socialization efforts and technical assistance.
Activities included public information campaigns, public
forums/dialogues, peace concerts, and a new "Aceh Magazine"
-- the first ever Aceh-based news magazine -- which will
target decision-makers province-wide with comprehensive
information related to the peace process, peace building, and
comparative information on peace processes. Funds also went
to bring in two post-conflict advisors who developed the
concept paper that led to the creation of the
multi-stakeholder "Joint Forum to Support Peace in Aceh"
(Forum Bersama Pendukung Perdamaian di Aceh, Forbes PPA),
which has become a cornerstone of the Provincial Government's
reintegration planning and implementation. From 11-13
December 2005, together with UNDP and the Governor's Office
in Aceh, we designed and supported the "Building Lasting
Peace in Aceh Workshop," which brought together for the first
time all stakeholders -- civilian, GAM, government (local and
central), and security forces -- into one room to discuss the
implementation of the MOU and peace more broadly in Aceh.
This set a very high and important benchmark for public
participation in the implementation of the MOU. A key result
became general demand to establish a multi-stakeholder forum
for sustained participation by GAM, civil society, donors,
and government.



8. (SBU) The balance of the $9 million will go for a range
of short term critical programs which support sustainable
implementation of the MOU. This includes $5,000,000 for
community-based reintegration programs to provide immediate
"peace dividends" through community-based redevelopment,
together with strengthening community-based governance and
accountability while increasing collaboration with local
government. Development Alternatives, Incorporated (DAI)
will implement this program through the Support for Peaceful
Democratization (SPD) Project. DAI will provide strategic
support to increase the capacity of key local government
offices and institutions engaged in the peace process and
continue supporting socialization of the MOU.



9. (SBU) We will provide $2 Million to the International
Organization for Migration (IOM) for a short-term, quick-
impact community-based reintegration peace dividend program.
This project responds to GOI requests to provide peace
dividends of small-scale infrastructure and/or community
redevelopment to conflict-affected communities in an
immediate and highly visible manner, thus ensuring Acehnese
recognize the benefits of peace.



10. (SBU) A further $600,000 will fund short- and long-term
TA and capacity building for institutions at various levels
of local government including the Joint Forum, the Governor's
Office, and other line agencies.



11. (SBU) We will provide some $700,000 in support for the
Wartorn Societies Project (WSP) to support work that will
feed into the Joint Forum. WSP has gained buy-in by relevant
senior-level stakeholders, including Vice President Jusuf
Kalla and senior GAM officials. USAID/Indonesia's support,
matched with $300,000 from USAID's Conflict Mitigation and
Management (CMM) Office, will bring initial USG support for
WSP to $1,000,000.



12. (SBU) The balance of some $700,000 will support
political processes required for the MOU's success, including
low-level support for direct local elections. USAID
assistance will facilitate travel for key stakeholders and
government counterparts from Jakarta to work on key issues
related to the MOU, including for example, the draft law on
the Governance of Aceh. This level of funding will suffice
for the short-term and we will need additional funds for the
USG to continue to support key political processes.



--------------------------


Programming USAID Mission Funds, $560,000


--------------------------





13. (SBU) USAID/Indonesia has provided another $560,000 via
the Office of Democratic and Decentralized Governance (DDG)
to support key aspects of MOU implementation. This includes
support to the Aceh Independent Election Commission (KIP) and
community consultation and related work with the Draft Law on
the Governance of Aceh. We have supported these additional
small, yet critical, programs through the Local Governance
Support Program (LGSP) and Democratic Reforms Support Project
(DRSP).



--------------------------


Leveraging Other Funding Sources, $1,050,000


--------------------------





14. (SBU) We have in the final stages of development an
agreement with ExxonMobil for $750,000 channeled through
USAID's community-based redevelopment and reintegration
programs around Lhokseumwe. As noted, we anticipate $300,000
from USAID/CMM to support the WSP project.



--------------------------


Donor Coordination


--------------------------





15. (SBU) Donor coordination and liaising with the
Government of Indonesia continue as critical aspects of USG
support for the peace process. The Embassy has initiated
donor coordination meetings to limit duplication of efforts
and ensure that the GOI understands and can explain
donor-funded programs in a manner underscoring GOI meeting
MOU commitments. The Embassy coordinates on a regular basis
with key donors working on community-based programs: the
European Union, World Bank, UNDP, JICA/Embassy of Japan,
Embassy of Canada, and the International Organization for
Migration (not a donor, but a part of the donor group).
Agencies not yet directly involved in direct assistance to
the process, attend coordination meetings as well, including
AUSAID, UNICEF, ILO, GTZ, and others.



16. (SBU) The Embassy has emphasized donor coordination in
community-based reintegration and peace-building programs.
In our coordination efforts, donors identify and coordinate
methodologies and constraints to avoid overlap and mitigate
potential harm when two programs occur in the same geographic
area. Donors have agreed with us to develop indicator data
that we can collect monthly or bi-monthly across all
donor-funded community-based programs. This data will go to
the government to demonstrate concrete progress in its MOU
obligations. We will map this data with implementing partner
DAI, allowing the donor group, in consultation with GAM and
the Government of Indonesia, to identify gaps, thus shifting
resources and strategies when necessary. We belong to the
informal donor group supporting the GAM-GOI MOU Socialization
Team. Through close contact with donors and the GOI, USAID
has ensured that timely, strategic and non-duplicative
programs. The activities we propose for longer-term support
will not receive sufficient funding from other donors.



--------------------------


Additional Funding: $30 Million Required


--------------------------





17. (SBU) The United States should continue as a reliable
and responsive partner in the implementation of the historic
MOU between the GOI and GAM. The initial assistance we have
provided gave proof of our commitment to peace, demonstrated
our respect for Indonesian ownership of the peace process,
and confirmed our ability to respond quickly. Even though
USAID/DDG proposes to contribute part of its FY06 and FY07
budgets to continue supporting the Aceh peace process, we
will need additional ESF for the U.S. to remain a strategic
and responsive partner.



18. (SBU) While USAID will program an estimated $10 million
of its own funds ($5 million in FY 06 and $5 Million in FY
07), we urgently require an additional $20 million of new ESF
commitments ($10 Million in FY 06 and $10 million in FY 07).
We propose using the additional $30 million for the following
activities: expanded community-based reintegration
activities; support to key political processes; technical
assistance/capacity building to key local institutions;
functional capacity for GAM representative office; local

direct elections; local political party development; WSP
program; peace building initiatives among Aceh NGOs; support
for the establishment of key institutions; support for higher
education; attitudinal surveys; Joint Forum; community-level
police training and human rights initiatives; and a
flexible/quick response mechanism to address unanticipated
problems. We detail these programs below.



--------------------------

--
Proposed Uses of $30 Million Additional Funding


--------------------------

--



19. (SBU) Expansion of Community-based Reintegration and
Peacebuilding activities: $6,000,000.

The GOI and GAM have identified community-based redevelopment
(reintegration) activities as the cornerstone of efforts to
provide concrete and visible peace dividends. The activities
maximize community participation from all stakeholder groups,
including former GAM combatants, in the implementation of
small-scale development projects. Our Aceh Community
Empowerment and Ownership (ACEO) Project (implemented by DAI)
strengthens village-level democratic governance, enhances
positive participation of the local government in citizens
lives, and develops community-based approaches to resolving
inter-group conflicts that will arise over time as
expectations rise and fall vis--vis the implementation of
the MOU. With additional resources, we could build upon
IOM's strategic partnership with the GAM and the GOI to
enhance community development initiatives over the next 2
years.



20. (SBU) Support to Key Political Processes: $2,500,000.

In October 2005, we presented our draft strategy for support
to the Peace Process to Minister of Justice and Human Rights
(and head of the GOI negotiating team in Helsinki) Hamid
Awaluddin. He focused upon USAID's plans to assist key
political processes required for successful implementation of
the MOU. Because of our relationships of trust with the GOI,
GAM, and local government and security forces counterparts,
we have become positioned to support implementation of
sensitive issues outlined in the MOU.



21. (SBU) Technical Assistance and Capacity Building to Key
Local Institutions: $3,000,000.

The Aceh provincial government and local actors must
undertake a range of responsibilities in accordance with
Presidential Decree 15/2005. Provincial government has a
pivotal role in reintegration and implementation of the MOU.
Recognizing the limited sensitivity of local actors to
address redevelopment (reintegration) issues, we will provide
robust technical assistance to strategic local institutions.
Planned activities include provision of international and
national advisors to the Health Department, Social Affairs
Agency, Governor's Office, local DPRD (Parliament), Industry
and Trade Office, Education Department and other important
institutions.



22. (SBU) Provide Functional Capacity to GAM Representative
Offices: $500,000.

GAM continues to demonstrate commitment to peace in Aceh,
with its leadership becoming invested in the process. The
successful disarmament, the dissolution of GAM's armed wing
(the TNA) on December 27, 2005, and GAM's unequivocal
statements abandoning independence and the use of violence or
armed struggle point to a strong commitment to live by the
terms of the MOU. A successful partner is a capable partner.
The GOI needs an interlocutor to engage in dialogue,
collaboration, coordination, and building peace throughout
the province. Currently, GAM has little operational support
for these activities. It has extremely limited
communications equipment, computers, transportation, and
capacity among its Banda Aceh-based leaders. Local
government, civil society leaders, AMM, and GAM have
requested that we provide functional capacity to the GAM
Representative Offices to the AMM. These offices would later
become the locus of interaction with GOI and provincial
government counterparts.



23. (SBU) Support for Local Direct Elections and Issuance of
New ID Cards: $3,000,000.

The April 2006 elections (most likely delayed by 3 months)
remain crucial to the future of peace in Aceh and must
succeed. We intend to continue to support the local
Independent Elections Commission (KIP) -- the local
government body charged with overseeing elections -- via
technical assistance, computer hardware, training support,
and other assistance. Presidential Decree 15/2005 makes the
Governor responsible to ensure that the GOI issues all
Acehenese new ID cards. Our assistance will help minimize
extortion that normally accompanies ID card procurement and
distribution. Technical and material assistance will enhance
the effectiveness of responsible agencies in replacing ID
cards and registering voters.



24. (SBU) Local Political Party Development: $1,000,000.

Through partner organizations such as the National Democratic
Institute (NDI), International Republican Institute (IRI) or
other international actors, we will ensure successful
implementation of another critical element of the MOU, that
of local political parties. Successful integration of GAM
into Aceh's peaceful civic life requires that it better
understands and develops strategies of a modern political
party. Our assistance would target a range of stakeholders
including GAM, existing and new local political parties.



25. (SBU) Wartorn Societies Project (WSP): $3,000,000.

WSP has a methodology to support the process of building
peace and reconciliation. WSP's program has an estimated
cost of $8,000,000 over five years. Additional assistance
from the U.S., together with a small group of other donors
(such as Canada, Norway, Sweden and the European Union),
would further confirm our commitment to sustainable peace in
Aceh. WSP would facilitate active involvement of local,
national, and international actors in ongoing collective
dialogue and research that allows societies emerging from
conflict to respond to the challenges of social, economic and
political rehabilitation.



26. (SBU) Longer term Peace-building Initiatives with
Acehnese Civil Society: $3,000,000.

We have the longest and most robust relations of any donor
with Acehnese civil society; we adapt to circumstances, back
local groups, and respect local initiatives. Only with
additional support can we continue this long-term commitment
for local ownership of the peace process.



27. (SBU) Support Establishment of Key Institutions:
$1,000,000.

Other key elements of the MOU include establishing an Aceh
Human Rights Commission and a Truth and Reconciliation
Commission (TRC). AMM and the governor's office have asked
that the U.S. provide technical assistance in the development
of these bodies. USAID's past relationship with
Jakarta-based ELSAM -- the only NGO to remain committed to
the national TRC -- would prove a valuable resource for
Acehenese counterparts. We would provide critical start-up
costs and office equipment and fund province-wide
socialization campaigns.



28. (SBU) Vocational Training/Non-Formal Education for
former GAM Combatants and Conflict-Affected Citizens:
$2,500,000.

Many of GAM's post-1998 recruits comprised young men who had
no jobs or sought revenge for the deaths of family members.
Many had not finished their formal educations or had the
opportunity to pursue university educations. Former
combatants and conflicted-affected citizens need vocational
skills training and other non-formal educational
opportunities to reintegrate into society. We hope to
leverage funds from private sector companies, such as
ExxonMobil to support such initiatives.



29. (SBU) Continued Support to the Joint Forum: $1,000,000.

We played critical role in developi(ng this
multi-stakehole forum. Committed assista nce over the next
two and half years would provide JF a secure source of
support.



30. (SBU) ICITAP Police Training and Support for Human
Rights : $1,500,000.

ICITAP developed the Aceh Transformation and Restoration
Project from current projects and existing resources within
our portfolio. ICITAP has delivered the successful Human
Rights for Senior Leadership Program in collaboration with
the Australian Embassy in November of 2006. We will deliver
the following programs within the next six months:
Institutional Transformation Community-Based Assessment and
Planning Program, Anti-Corruption Financial Transparency
Program, Mid-Level Management training, Human Rights-Force
Options Continuum training, and Civil Disorder Management
training and associated equipment. Once these programs
finish, we have no additional funding to continue our
presence in Aceh. Embassy requests $1.5 in additional funding
for this ICITAP program.



31. (SBU) With additional funding ICITAP would expand the
Human Rights training program to include all levels of INP
personnel, developing a training cadre of INP instructors
from already HR trained management personnel. The HR
component would include curriculum integration into basic and
in-service training syllabi; deliver modern law enforcement
management and leadership training modules for INP Command
and mid-level management personnel; provide capacity building
within Aceh Kapolda, and criminal investigation training. We
would continue collaborating with the Australian Embassy.



32. (SBU) Flexible/Quick Response Mechanism: $2,000,000.

Addressing unanticipated problems remains the biggest
challenge. Our in-kind, fast and flexible funding mechanism
to provide corruption-free assistance to local NGOs,
government institutions, community groups, and international
partners would assist us in responding quickly to unforeseen
emergencies. At a minimum, a flexible fund of $1,000,000 a
year could maintain our advantage in providing fast,
flexible, and responsive support. No other donor has this
capacity.



--------------------------


Comment


--------------------------





33. (SBU) ASEAN and the European Union performed an
important role in implementing the GOI-GAM MOU through the
Aceh Monitoring Mission. The United States has remained
visibly engaged and provided important support for Aceh's
transformation, thanks to supplemental funding agencies
provided in Fall 2005. We have strategic and effective
relationships with stakeholders of all levels in GAM,
government and civil society. Our ability to respond
effectively and rapidly, and in a manner that prioritizes
local ownership has allowed us to have a significant impact
on the peace process. We need to maximize this momentum for
Aceh and to ensure we remain a visible peace partner. We
urge Washington provide an additional $20 million in
supplemental ESF over two years to augment the $10 million
proposed commitment from USAID FY 06/07 budgets.
PASCOE