THE PROVINCE OF
NANGGROE ACEH DARUSSALAM (NAD)
Challenges and Opportunities



THE LAND

        Aceh (also known as Acheh, Atjeh or Achin) is one of Indonesia's provinces that bears the special region status that was formally called The Special Territory of Aceh, in terms of religion, education and culture. By Law No. 18 of 2001 on the Special Autonomy for Aceh, the Province is called Nanggroe Aceh Darussalam (NAD). The capital of NAD is Banda Aceh or previously known as Kutaradja.

        The Province covers an area of 57,365.57 sq. km., including 119 small islands stretching along its western coast, 35 mountains among others Leuser, Anu, Abong-abong, Tangga, Ulumasem, and Peut Sagu; 2 lakes: Laut Realoih and Laut Tawar and 73 rivers among which are the Krueng Aceh, Krueng Tripa, Krueng Peusangan, Krueng Jamboaye.

        Geographically, NAD located in the western most part of the Republic of Indonesia, between latitudes 2N-6N, and between longitudes 95E-98E towards the northern tip of Sumatra Island. The province constitutes 12.26% of area of Sumatra Island. It is surrounded by Malacca Straits in the north, North Sumatra Province in the east, Indian Ocean in the south and west. A mountain range with thick tropical forests runs through the middle of the province.


Flora and Fauna

        The national park of Gunung Leuser is probably the wildest biosphere reserve in Indonesia, located in Southeast Aceh that can be reached either from Kutacane or Takengon. The Leuser ecosystem area - approximately 2.5 million hectares of tropical rain forest, encompassing 890,000 hectares of designated national park, as well as extensive areas of protection and production forest at the border of North Sumatra province and Aceh. Vegetation types include coastal beaches, swamps, and lowland and mountain forest.

        The park also has research facilities for the study of primates, birds, insects, and other animals. Basic accommodation facilities are available at Ketambe. The rapid-infested Krueng Alas River inside the park is popular with rafters. To protect this unique natural heritage, the Indonesian government is experimenting with a novel mode of conservation management by giving a conservation concession to a non-profit making, non-governmental organization, the Leuser International Foundation (LIF). This concession, for thirty years, gives managerial responsibility to the LIF for all activities within the Leuser Ecosystem. This is the first time in Indonesia that such management has been entrusted to a private organization. The Foundation manages the Leuser Ecosystem on behalf of the government on the basis of a Presidential Decree (Keppres 33/1998) issued in February 1998.

        Typical fauna of Aceh includes 512 species of mammals, 313 species of birds, 76 reptiles and 18 species of amphibious animals, among others are the rhinoceros, bear, elephant, orangutan, tiger, gibbon.



PLACES OF INTEREST

Around Banda Aceh

        Banda Aceh is the capital of Aceh and also the main gateway to the province. The Governor's Residence was built by the Dutch in 1880 on the spot where the palace of the sultan once stood. This building is known as one of the historical sites with a unique architecture and completed with traditional house equipments.

Baiturrahman Grand Mosque

        It is one of the most outstanding landmarks in the capital city. The old mosque that stood there before it was burnt down at the beginning of the Aceh War, was rebuilt in 1875, taking its present shape after a number of renovations and expansions.

Museum Negeri

        It is another charm of the city. The museum is filled with antiques. Among the exhibits is a big clock, a gift from the Emperor of China and brought to Aceh by the famed Admiral Cheng Ho in 1414.

Gunongan and Pinto Khop

        Gunongan and Pinto Khop which are located a few steps from the Pendopo are also a charm of the city. Gunongan was erected around the 16th century during the reign of Sultan Iskandar Muda.

Kerkhop or Churchyard

        It is a much visited site especially by Dutch visitors where the remains of more than 2,000 Dutch soldiers lie buried.

The Syiah Kuala Grove

        It is another popular visitors object. Teungku Syiah Kuala was one of Aceh's great Moslem Ulama's of the past. His grave stands near the mouth of the Krueng Aceh River about 2 km from the city, visited by local visitors and from other parts of Indonesia and Malaysia.

Indra Patra Fortress

        This old fort was built during the time of Iskandar Muda. It probably functioned as a defense against invader's attacks.


Museum Cut Nyak Dien

        It is a historical object. The house is a replica of the heroine Cut Nyak Dhien, from the Aceh War. The house was burned down by the Dutch but a replica was built later, after Indonesia's independence. This house in Lam Pisang is about 6 km from Banda Aceh, and is now a museum.

Beaches

        The most popular beaches are Gapang beach and Iboih beach in Sabang, Kuala Dou beach is west Aceh. Other most popular and uncrowded beaches in Banda Aceh are Ujong Batee beach, Lampu'uk beach and Lho'nga beach which are located 16 km from Banda Aceh. All the beaches have clean water and white sand. Sunsets are quite impressive at all beaches.

Sea Gardens

        Sea Gardens are located off shore from Banda Aceh at about 45 minutes by speedboat. Some can be enjoyed around Rubiah island in Sabang and the rest are around Beras islands, Aceh island and other small islands around them. In these beautiful places, one can see gigantic clams, angelfish, lionfish, sea fans and much more.

Around Takengon and the Lake

        Takengon is the capital of the central area of Aceh, which lies on the west side of Lake Tawar, 1,120 meters above sea level, with an average temperature of 200C (680 F). The city is cool enough for a holiday resort. The scenery is marvelous and the lake can be used for water sports, such as ski. One can tour around the lake by motorboat or other water transportation. There are caves around the lake slopes of the mountain and the mountain itself is suitable for climbing. A number of hotels are being built to encourage a rapidly increasing tourist industry.

Around Lhokseumawe and the former Kingdom of Samudra Pasai

        Lhokseumawe is a town located 274 km from Banda Aceh, which is now being developed as an industrial zone of Aceh. Many gigantic plants are constructed following the discovery of huge LNG resources in the area. A touristic feature of the town is the Samudra Pasai, the first great Islamic kingdom of Indonesia. All that remains of it, however, is a graveyard 18 km east of the town where one can see the grave of Malikul Saleh, the first ruler of the kingdom, and the graves of royal family of Samudra Pasai, including that of a queen named Nahrisyah. The kingdom produced its own gold coins, which still can be found in the surrounding areas. Other objects for visitors are Blang Kolam Falls and Ujung Blang beach.



THE PEOPLE

        Aceh is also known as Mecca's front veranda among Indonesians for the reason that Islam entered the Indonesian archipelago and also Southeast Asia through Aceh. Equally important, the first Islamic Kingdom in the archipelago was established in Aceh, namely the Kingdom of Perlak in the year 804. However, Aceh is not completely exclusive for Moslems as attested by the existence in the Province, in 2000, of 91 Protestant Churches, 19 Catholic churches, 5 Buddhist Temples and 4 Hindus Temples.

        The people of Aceh are of varied origin who are a blend of many races, and many of them could pass for Indians or Arabs. In Lanno, on the west coast, people tend to look more European (the heritage of Portuguese castaways). In the interior, the descendants of people from Batak and Nias add another ethnic twist. Roughly there are about 4 million people who live in Aceh today. By religion, the population of the Province in 2000 consists of 3,796,027 Muslims, 31,631 Protestants, 5,662 Catholics, 708 Hindus and 9.971 Buddhists.

        As to the language, Acehnese speak Bahasa Indonesia in addition to theirs. However, there are several dialects spoken in Aceh, namely those of Banda Aceh, Baruh, Bueng, Daja, Pase, Pidie (Pedir, Timu) and Tunong.



THE ECONOMY

        NAD is bestowed with vast natural potentials scattered over all areas, such as in mining, fisheries, plantation/estates, agriculture, culture with high value, magnificent as well as attractive nature objects for tourism. Indeed, it has ample natural resources that offer potential investment opportunities for domestic as well as foreign investors such as in the sectors of agriculture, forestry, mining, industries, property, fisheries, animal husbandry commodity, and tourism.

        Aceh's economy is mainly agricultural. Nevertheless, the Province has large deposit of minerals which can be found in 9 regencies in the Province, such as cooper, gold, iron, sulphur, quartz sand, magnet, marble, coal, limestone, natural gas, etc. Aceh is also part of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) Development Project, which began in 1993. IMT-GT covers 20.5 million people in an area of 230,000 sq. km., including 2 provinces of the northern island of Indonesia (North Sumatra and Daerah Istimewa Aceh), 4 north Malaysian States (Kedah, Perlis, Penang and Perak) and 5 southern border Provinces of Thailand (Songkhla, Yala, Pattani, Narathiwat and Satun). The goals of IMT-GT are to accelerate economic growth of the three nations and to develop closer cooperation at the government level and in the private sectors in the fields of tourism, investment, and trading.

        NAD is one of the provinces with tremendous potentials that have not been completely developed. In addition to oil and natural gas, mining industry in general is still widely open to investors as a great quantity of minerals and deposits has not been fully utilized. Major industries currently in operation are PT. Arun LNG, PT. Aceh Asean Fertilizer, PT. Pupuk Iskandar Muda (Fertilizer), PT. Mobil Oil Indonesia, Pulp and Paper, PT Aromatic, and Andalas Cement Factory. In agriculture, particularly in plantation estates, significant achievement has been made. The production of crude palm oil is over 257,000 tons, while 47,000 hectares of land are reserved for expansion. Therefore, the opportunities to establish downstream processing operations are widely opened.

        It is unfortunate, however, that the prolonged conflict in the province inevitably disturbs economic activities in some areas, and creates disruptions in its economy. However, the government continues to strengthen measures to ensure the security and to create a conducive environment for economic activities in the province.


The Sabang Integrated Economic Zone (IEDZ)

        The Sabang IEDZ (Kawasan Pengembangan Ekonomi Terpadu-KAPET Sabang) is one of the 15 economic development zones established by the Government of Indonesia for developing and promoting the potentials of every zone in the country. The Sabang IEDZ is the only one in the northern part of Indonesia. It was established by a decree of the President of the Republic of Indonesia, No. 171, 1998, and officially inaugurated on September 22, 1998.

        The Sabang IEDZ is an agency established by the government to serve the needs of domestic and foreign investors investing in the zone. The agency will provide a one roof service to any investor interested in investing in the zone such as legal and law services and assisting investors in obtaining permits, recruiting labor/employees, tax services and other services related to investment in the zone. Beside that Sabang IEDZ will provide tax incentives for investors such as Value Added Tax and Sales Tax on Luxury Goods will not imposed, exemption from Income Tax under Article 22 on the import of capital goods and related equipment, accelerated depreciation and or amortization in the sector of Income tax and deductible production cost.

         Sabang is located in the Island of Weh, one of the islands that located at the northern tip of Sumatra Island. The Sabang IEDZ covers an area of 263.75 sq. km. and includes the Weh, Rubia, Rondo, Selako and Klah islands in the Sabang Municipality area and the Brueh, Nasi and Teunom islands in the Regency of Aceh Besar.



THE POLITICAL HISTORY


        Chinese chronicles from as early as the sixth century speak of a kingdom called Po-Li on the northern tip of what is now Sumatra. Arabic writings and Indian inscriptions from around the 9th century also mention this area and its obvious importance. Of all the regions in Indonesia, Aceh, at the northwestern end of Sumatra, was the first to have contact and be influenced by the outside world.

        According to some historians, Islam first entered the Indonesian archipelago, and possibly all of Southeast Asia, through Aceh sometime around the year 700. The first Islamic Kingdom in Aceh was Perlak, established in 804. In 1292, Marco Polo visited Sumatra and reported that in the northern part of the island there were as many as six busy trading ports. For many centuries Aceh was a very distinct and influential political entity. The Sultan of Aceh, along with the Sultan of Malacca, was a major controller of trade through the straits. In 1511, the Portuguese seized the important strategic port of Malacca, pushing many Asian and Arabic traders to call instead on the developing port of Aceh.

        Under the reign of Sultan Iskandar Muda (1607-36), Aceh was the most powerful state in the region. At that time, Aceh was dominant in trade and politics. Since the death of Sultan Iskandar Thani in 1641, the influence of Aceh had gradually declined. As a result, both the British and Dutch began vying for domination. Eventually the signing of the London Treaty 1824 saw the Dutch gain control of all British possessions in Sumatra. It was a long drawn out struggle for the Dutch in attempts to subdue the rebellious and courageous Acehnese. The Aceh War, which lasted intermittently from 1873 to 1942, was the longest ever fought by the Dutch costing them over 10,000 lives.

        It is important to recall that Aceh was one of the proponents of Indonesia's independence in 1945 and its contribution is well recognized in the country. Aceh had a big role in building the country from the beginning. At the end of Japanese occupation during the Second World War, local resistance prevented the Dutch from returning. The people of Aceh also gave financial and material support to the nascent Indonesian Republic in the late 1940s. When the Government of the Netherlands formally transferred its sovereignty over the Dutch East Indies, including Aceh, to the Government of Indonesia, in 1949, the territory became legally a part of Indonesia. On 28 September 1950, Indonesia was accepted as a member of the United Nations and since then, the international community has recognized the Aceh province as an integral part of Indonesian territory.

        In 1950 the central government curbed the de-facto autonomy that Aceh had enjoyed within the Republic by merging it with the province of North Sumatra. This threatened the influence of local elites and the ulema, Aceh's influential Islamic scholars, who feared that the role of Islam would be undermined. The result was an armed rebellion that began in 1953. This rebellion was linked to several other revolts across the country, known collectively as the Darul Islam (House of Islam) because of their advocacy of a central role for Islam in the state. The aim of these revolts, like the PRRI and Permesta rebellions of the same period, was to change the character of the government in Jakarta, but not to separate from Indonesia. The rebellion in Aceh only petered out in the early 1960s, after President Soekarno had returned Aceh's provincial status and its autonomy in religious and cultural matters. The settlement calmed tensions between Aceh and the central government for more than a decade.

        The notion that Aceh should secede from Indonesia does not seem to have become widespread until the late 1970s, after the New Order Government had stripped the content out of the autonomy promised by President Soekarno. The growth of oil and gas-based industries along Aceh's northeastern coast also created social dislocations, fueled by resentment at the way the profits of these industries were siphoned out of the province by people from Jakarta and foreign business, with little benefit accruing to the Acehnese.

        The first secessionist uprising began in 1976, under the leadership of Hasan di Tiro, who founded the Aceh Liberation Movement (GAM). The movement had little military strength and was quickly contained by the security forces. Hasan di Tiro fled to Sweden where he lives in exile. The uprising erupted again in 1989, aided by the return to Aceh of a group of guerrillas, reportedly more than 250 persons who had been trained abroad. The rebellion was most intense in the regions along Aceh's northeastern coast, which are home to many industries of the province and half its population, and led to guerrilla war which has continued intermittently to this day. The past central government responded with a repressive approach. From 1989 to 1998, Aceh has been under military operation which was known as Operasi Jaring Merah or Red Net Operation. The excess of this operation which manifested in various human rights abuses, created a deep resentment and distrust of the government which continues to fuel demands for independence, particularly in the northeastern areas.

        The fall of the New Order Government in May 1998 created an opportunity to break with the repressive policy that had been adopted a decade earlier. In August 1998 the government of President B.J. Habibie revoked the status of Aceh as Military Operations Area. He visited Aceh in 1999 and apologised for the past abuses and made a number of pledges to the Acehnese. These promises included legal action against human rights abusers, scholarships for children orphaned during the conflict and measures to boost the economy, such as the repair of a defunct railway to neighbouring North Sumatra and the reopening of the port of Sabang which had been closed a decade earlier.

        The Habibie government offered more political and economic autonomy to all of Indonesia's provinces, including Aceh, through Laws No. 22 and 25 of 1999. These laws, which did not take effect until the start of 2001, transferred extensive governmental powers from the centre to the regions, along with a share of the net income from natural resources in each region. Moreover, Aceh has also been granted its own additional law, No. 44 of 1999, which defined the `special status' of the province as the right to organise its own religious, cultural and educational affairs within the national guidelines set by the central government. However, the law was overtaken by the plans for a much more extensive autonomy law, which is now reflected in Law No. 18 of 2001 on the Special Autonomy for Aceh.

        As the central government failed to deliver on its promises at the speed expected by Acehnese amid the euphoria of new political freedom in the country, GAM re-emerged during this period and spread outwards from the northeastern coastal areas into the west, the south and the mountainous centre of the province. The development in East Timor in 1999 inadvertently encouraged GAM and Acehnese civil activists to widen their demands from justice to self-determination in Aceh.

 


IN SEARCH OF A LASTING PEACE IN ACEH

        Suffice to say that problems in the Province are multidimensional, caused, among others, by economic injustices resulting from the very centralized system, by violations of human rights perpetrated in the past, and the existence of an armed separatist movement that has in turn provoked certain aspirations among a small number of the Acehnese society to secede from the Republic of Indonesia. The Province of NAD has been an integral part of the territory of the Republic of Indonesia from its very inception and the Government is determined to defend Indonesia's territorial integrity.

        Nevertheless, in dealing with the problems in Aceh, the Government of the Republic of Indonesia strongly believes that a solution could only be found through dialogue and not through the use of force. In fact, the Government is mandated by the People's Consultative Assembly, the highest state organ, to settle the problem of Aceh through dialogue and reconciliation and to grant Aceh a Special Autonomy.

        Indeed, the government's commitment to dialogue has been clearly demonstrated since January 2000 when it began engaging in negotiations with the Free Aceh Movement (Gerakan Aceh Merdeka/GAM) facilitated by the Henry Dunant Institute (later renamed the Humanitarian Dialogue Centre). After a series of meetings in Switzerland, both parties signed a Joint Understanding on Humanitarian Pause for Aceh on 12 May 2000. The main goals of the Understanding were to deliver humanitarian assistance to those effected by the conflict situation; to formulate security modalities with a view to supporting the delivery of humanitarian assistance and to reducing tension and violence which may cause further suffering; and to promote confidence-building measures towards a peaceful solution to the conflict situation in Aceh.

        During the first phase of the implementation of the Understanding, which lasted from June 2 to September 2, 2000, there was an improvement in the security situation in the Province. However, there was also a deep concern that on many occasions, the GAM continued to violate the Understanding, such as raising the flag of GAM, attacks on police outposts, extortion, distribution of threatening letters and intimidation of local government officials from village to district level with the objective of disrupting and stopping government services. Moreover, there has been strong evidence that GAM abused the Humanitarian Pause by consolidating, including recruiting and training more of their armed elements. All these activities were undoubtedly in violation of and contrary to the spirit of the Joint Understanding.

        Despite breaches of the Humanitarian Pause by GAM, in September 2000, the Government agreed that the Humanitarian Pause be extended until 15 January 2001. During the second phase of the implementation, the security situation in Aceh, however, did not show much progress due to the lack of GAM's commitment to genuinely implement the Understanding.

        On 6-9 January 2001, both parties again met and decided to terminate the Pause. Substantially, both agreed to hold a substantive political dialogue seeking a formula for a lasting and comprehensive solution to the conflict by using non-violent means. The meeting also agreed to formulate new security arrangements and to create a mechanism for all-inclusive democratic consultations in Aceh on substantive issues including human rights, socio-economic development, while a one-month moratorium on violence was agreed. As a follow up of the meeting, in February 2001, commanders from the Police/TNI and GAM held a series of commander to commander talks and reached agreements among others: to stop violence and to maintain law and order in Aceh.

        Despite the inability of GAM to fulfill its commitment, a meeting was reconvened in Switzerland on 30 June and 1 July 2001. Its objectives were to re-establish contact and to explore security guarantee so as to enable the operation of vital objects in Aceh. In the political aspect, agreement was reached to conduct an all-inclusive dialogue among the elements of Acehnese society, including GAM. In the security aspect, GAM insisted on a comprehensive cease-fire, while the Government demanded a gesture of good faith from GAM that they issue a guarantee not to disturb the operation of vital objects as well as to involve GAM's regional commander in commander-to-commander meetings. Since GAM could not fulfill these conditions, the government decided to freeze the Committee on Security Matters, until such a time that GAM would change its position.

        Following the meetings in 2001, the Indonesian Government and GAM continued to have dialogue facilitated by the 'Henry Dunant Center' (HDC), and managed to produce some more agreement inter alia: agreement on 'Points for Further Consultation' on February 2002; a joint statement, underlining the acceptance of NAD Law as a starting point for a democratic all-inclusive dialogue, involving all elements of Acehnese society on May 2002; and an agreement on the cessation of hostilities signed by the Government of the Republic of Indonesia and the Free Aceh Movement on 9 December 2002 in Geneva, Switzerland. Under this latter agreement, both sides agreed inter alia: not to increase their military might in Aceh; to support the process of all-inclusive dialogue in Aceh facilitated by the HDC; to reactivate the Joint Security Committee (JSC) in order to formulate the implementation of the agreement and to monitor the security situation in Aceh. The JSC was also empowered to undertake investigations of any security violations, to take appropriate action to restore the security situation and to apply the sanctions. To focus its attention in establishing and maintaining the security in Aceh, the JSC would establish certain regions in Aceh as 'peace zones'; and that issues or disputes arising from the implementation of the agreement were to be solved through a joint council composed of the most senior representatives of the Indonesian government, the Free Aceh Movement and the HDC.



RECENT INITIATIVES

        In its efforts to solve the problems of Aceh, the Indonesian government had decided to adopt a comprehensive approach, and to address the political, economic, social, law and order, security and information and communication aspects of the problem. This policy was reflected in Presidential Instruction No. 4/2001 on "Comprehensive steps in the context of resolving the Aceh problem" issued in April 2001. It defined the problem as the dissatisfaction of the people and the existence of an armed separatist movement. It outlined a six-point plan which included restoration of peace and security, the passing of the autonomy law, the restoration of the functioning of local government, restoration of economy and society, the reassertion of the rule of law and an information campaign to explain the strategy to the Acehnese.

        In accordance with the change of national leadership and developments in the field, the administration of President Megawati Soekarnoputri conducted some adjustment to the Instruction through the issuance of Presidential Instruction No. 7/2001 which essentially revised the earlier instruction and reaffirmed the comprehensive approach to the solution of the problems in Aceh.

        Against its true spirit and objective, the instruction has mistakenly been construed by several quarters as a new military approach. It is worth mentioning however that the security aspect is only one dimension to the comprehensive approach. In this regard, the security apparatus will avoid casualties among innocent people, which are usually used as human shields by the armed separatist movement. Any necessary operations would be conducted by well-trained professional counter insurgency units of the TNI, preceded by intelligence operations to gain accuracy of the target, that is, the members of the armed separatist movement. The Government is also convinced that the limited security operation would create a more conducive environment necessary for the implementation of development programs including humanitarian assistance badly needed by the Acehnese which have been hindered by the activities of GAM.

        Although the government has been confronted by its own domestic critics for pursuing a policy of allowing itself to be equal with the separatists, the dialogues have been conducted by the good offices of the Henry Dunant Center, as have been explained earlier in this book (see: In search of a Lasting Peace in Aceh). But while its efforts to solve the problems of Aceh through persuasion and dialogue with GAM are time-consuming, they have so far brought out minimum results. Some progress had actually been made, in particular following the cessation of hostilities agreement in December 2002, such as the establishment of the first peace zone in Aceh covering Indrapuri District in the Greater Aceh regency on 25 January 2003 by JSC; the designation of peace zones by JSC covering Kaway XVI in West Aceh regency, Peusangan in Bireuen regency, Tiro in Pidie regency, Sawang in West Aceh regency, Simpang Keramat in North Aceh regency and Idi Tunong in East Aceh regency.

        Regrettably, this encouraging progress did not materialise further as the rebels capitalised on the relatively calm environment to further consolidate their forces by continuing activities to recruit new members for their military wing and by establishing a new administrative structure; as well as running campaigns to have a referendum for independence in Aceh, all of which are not in accordance with the agreement. In addition, the rebels continue their intimidatory tactics on large companies, on the public from various professions and ordinary people to raise what are so called 'Nanggroe taxes' to fund their independence cause. Furthermore, the rebels have shown their defiance by refusing to start the five-month disarmament process as required by the agreement. Under the agreement, the rebels in phases were to begin the process of disarming in those designated areas.

        These unwelcome situations have yet again forced the Indonesian government to revisit the military option, a difficult one, but it should not be ruled out to meet the rebels' uncompromistic stance for Aceh independence.

 

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Source: Directorate General for Socio-Cultural Relations and Foreign Information, Department of Foreign Affairs Republic of Indonesia, 2001


Embassy of Indonesia in Canberra, Australia