Preliminary Damage Assessment

A preliminary damage assessment prepared by the Indonesian government, the World Bank, and other international donors, finds that Aceh and northern Sumatra will face significant challenges recovering from the devastating effects of the tsunami. The report estimates that total damages and losses amount to $4.5 billion – almost equal to the entire GDP of Aceh.

The assessment finds that the disaster primarily affected the private sector, undermining many of the assets and activities that support livelihoods – housing, commerce, agriculture, and fisheries. Loss of roads, government buildings, and other public infrastructure accounted for just 22 percent of the damages and losses, while the report placed private sector impacts at 78 percent of the total damages.

The immense private-sector losses will pose particular challenges for reconstruction. The report concludes that priorities for reconstruction "must lie in ways to rebuild the livelihoods and social fabric of the devastated communities."

Housing as a first step

The report estimates that houses and buildings in the affected areas incurred about US$1.4 billion worth of damages and losses. Reconstruction of houses needs to be the first step in rehabilitating livelihoods in the disaster struck area, as a significant share of the total damage was due to the loss of housing.

"Repairing and reconstructing homes will be less costly when carried out at the community level and will also generate income at the local level," the report says.

Generating income

The report says a local economic revival strategy should also focus on local entrepreneurship and the promotion of small enterprises. During the rehabilitation phase, many people will turn to micro-enterprise activities to generate income, according to the report. These people will need access to ideas and micro-finance.

Rebuilding rural lives

The livelihoods of people in the agricultural and fisheries sectors were the hardest hit, according to the assessment. The loss of income in those two sectors alone makes up more than one-third of the total losses of the disaster. The report says in order to minimize people’s income losses, it will be important to resuscitate the fisheries and agricultural sectors as quickly as possible, possibly through extended micro-credit and grant programs.

Providing public services

In many areas, local administrations no longer function. The assessment recommends that these governing bodies be rebuilt as quickly as possible, through standard procedures for village elections. With village councils elected early, they could then aid in local reconstruction.

Helping the vulnerable

The report highlights the plight of newly created vulnerable populations – such as single mothers and orphans. It’s estimated as many as 7,700 children may have lost both their parents. Future aid efforts need to pay particular attention to orphans, says the report. Preliminary estimates have suggested that 75 percent of children who have a surviving mother don’t live in extended families, and now lack any support network.

Rebuilding communities

The report says that reconstruction of houses, markets, and other community infrastructure will provide an opportunity for the Acehnese to take part in their own governance and society building. However, revival of the social fabric after the disaster will require empowering leaders to take an active part in rebuilding communities.

Reconstruction

The report concludes that developing a reconstruction strategy will require "vision, the focus and involvement of communities affected, strong implementation arrangements and monitoring systems."

While estimated damages and losses to Indonesia have been preliminarily assessed at $4.5 billion, the report warns that reconstruction costs will be higher.

The damage estimates are only for replacement – how much it would cost to replace all the original homes, roads, and other assets back at their original location. The report says reconstruction costs will be eventually calculated on the basis of a reconstruction plan that may involve rebuilding in different locations, or to different specifications.