This record is a partial extract of the original cable. The full text of the original cable is not available.

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 
 
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Summary 
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¶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. 
 
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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. 
 
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Comment 
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¶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