Policy Document

This document defined the assistance policy of the MDF in providing rules and guidance for prioritizing relevant assistance/ funding to meet the urgent needs of the recovery effort, taking into account the finite resources of the MDF in comparison to the overall needs of the recovery program.

Click here to download the Recovery Assistance Policy

Operations Manual

Based on resolutions setting up the Trust Fund with the International Development Association (IDA World Bank) as Trustee, the Operations Manual formed the main reference as to the structure and organization of MDF, its processes and operational procedures.

Click here to download the Operations Manual


About the Multi Donor Fund for Aceh and Nias

The Multi Donor Fund for Aceh and Nias (MDF) was established in April 2005 in response to the Government of Indonesia’s request to coordinate donor support for the reconstruction and rehabilitation of affected areas following the December 2004 earthquake and tsunami, and the subsequent March 2005 earthquake. The MDF provides a successful model for post-disaster reconstruction based on partnerships between government, donors, communities and other stakeholders.

The MDF pools US$655 million in contributions from 15 donors: European Union, the Netherlands, the United Kingdom, the World Bank, Sweden, Canada, Norway, Denmark, Germany, Belgium, Finland, the Asian Development Bank, the United States, New Zealand, and Ireland. These funds amount to nearly ten percent of the overall reconstruction funds. At the request of the Government of Indonesia, the World Bank serves as Trustee of the MDF.

Grant funds are provided to projects that are implemented by government, international organizations, non-government organizations and communities, with partner agencies providing oversight. Partner agencies include the United Nations Development Programme (UNDP), the World Food Programme (WFP), the International Labour Organization (ILO) and the World Bank.

The MDF Governance

The MDF was governed by a Steering Committee comprised of donors, representatives of national and provincial government, and civil society representatives. The United Nations Coordinator and a representative of the international NGO community were official observers.

A Technical Review Group (TRG) carried out more detailed reviews and made recommendations to the Steering Committee, streamlining the governance process.

The Steering Committee was co-chaired by the national government, represented first by the Badan Rekonstruksi dan Rehabilitasi Aceh-Nias (BRR), the Government of Indonesia’s Agency for the Rehabilitation and Reconstruction of Aceh and Nias. This role was later taken up by Bappenas, the National Planning Agency. Other co-chairs were the Government of Aceh, the European Union representing the donors, and the World Bank as trustee of the fund.

The MDF Projects

Under the MDF portfolio, 23 projects were financed in six outcome areas:
  1. Recovery of Communities;
  2. Reconstruction and Rehabilitation of Large Infrastructure and Transport;
  3. Strengthening Governance and Capacity Building;
  4. Sustaining the Environment;
  5. Enhancing the Recovery Process; and
  6. Economic Development and Livelihoods.
These projects reflected the priorities of the Indonesian government throughout the reconstruction process.

The MDF worked in all 17 districts and cities in Aceh, and the four districts and one municipality on the island of Nias. All of these areas were affected by the tsunami and earthquake. Click here to see a map of the MDF program areas.

Go to the Java Reconstruction Fund Site