Decentralization/Federalism: MoU between the Government of the Republic of Indonesia and the Free Aceh Movement

MEMORANDUM OF UNDERSTANDING

(15 AUGUST, 2005)

1. Governing of Aceh

1.1 Law on the Governing of Aceh

1.1.1 A new Law on the Governing of Aceh will be promulgated and will enter into force as soon as possible and not later than 31 March 2006.

1.1.2 The new Law on the Governing of Aceh will be based on the following principles:

a) Aceh will exercise authority within all sectors of public affairs, which will be administered in conjunction with its civil and judicial administration, except in the fields of foreign affairs, external defence, national security, monetary and fiscal matters, justice and freedom of religion, the policies of which belong to the Government of the Republic of Indonesia in conformity with the Constitution.

b) International agreements entered into by the Government of Indonesia which relate to matters of special interest to Aceh will be entered into in consultation with and with the consent of the legislature of Aceh.

c) Decisions with regard to Aceh by the legislature of the Republic of Indonesia will be taken in consultation with and with the consent of the legislature of Aceh.

d) Administrative measures undertaken by the Government of Indonesia with regard to Aceh will be implemented in consultation with and with the consent of the head of the Aceh administration.

1.2 Political participation

1.2.4 Until 2009 the legislature of Aceh will not be entitled to enact any laws without the consent of the head of the Aceh administration.

1.3 Economy

1.3.1 Aceh has the right to raise funds with external loans. Aceh has the right to set interest rates beyond that set by the Central Bank of the Republic of Indonesia.

1.3.2 Aceh has the right to set and raise taxes to fund official internal activities. Aceh has the right to conduct trade and business internally and internationally and to seek foreign direct investment and tourism to Aceh.

1.3.3 Aceh will have jurisdiction over living natural resources in the territorial sea surrounding Aceh.

1.3.4 Aceh is entitled to retain seventy (70) per cent of the revenues from all current and future hydrocarbon deposits and other natural resources in the territory of Aceh as well as in the territorial sea surrounding Aceh.

1.3.5 Aceh conducts the development and administration of all seaports and airports within the territory of Aceh.

1.3.6 Aceh will enjoy free trade with all other parts of the Republic of Indonesia unhindered by taxes, tariffs or other restrictions.

1.3.7 Aceh will enjoy direct and unhindered access to foreign countries, by sea and air.

1.3.8 GoI commits to the transparency of the collection and allocation of revenues between the Central Government and Aceh by agreeing to outside auditors to verify this
activity and to communicate the results to the head of the Aceh administration.

1.3.9 GAM will nominate representatives to participate fully at all levels in the commission established to conduct the post-tsunami reconstruction (BRR).

1.4 Rule of law

1.4.1 The separation of powers between the legislature, the executive and the judiciary will be recognised.

1.4.2 The legislature of Aceh will redraft the legal code for Aceh on the basis of the universal principles of human rights as provided for in the United Nations International Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights.

1.4.3 An independent and impartial court system, including a court of appeals, will be established for Aceh within the judicial system of the Republic of Indonesia.

1.4.4 The appointment of the Chief of the organic police forces and the prosecutors shall be approved by the head of the Aceh administration. The recruitment and training of organic police forces and prosecutors will take place in consultation with and with the consent of the head of the Aceh administration in compliance with the applicable national standards.

1.4.5 All civilian crimes committed by military personnel in Aceh will be tried in civil courts in Aceh.

Implementation History

2005

Minimum Implementation

Consultation on the drafting of an autonomy bill started in mid-September. The Provincial legislature had formed an 18 member special committee to further refine the draft bill, which was expected to be submitted to the Indonesian parliament in late 2005.1

  • 1. "Controversy over drafting of constitution for Indonesia' Aceh continues," BBC Monitoring Asia Pacific, December 22, 2005.
2006

Full Implementation

The draft bill was submitted to the parliament in January2 and the bill was passed by the parliament on 11 June.3 Under the new law, Aceh would enjoy greater self-governing powers.4

Aceh law has provisions for the economy of Aceh in terms of basic principle (Article 158) and the direction of the economy (Article 159). The law also provides autonomy on investment and trade (Article 163-167) including the establishment of the Sabang Free Trade and Free Port Zone and economic infrastructure.

The law gives Aceh its own executive, legislative and judiciary.

By signing presidential instruction (Inpres 15/2005) on 17 November 2005, representation of GAM in BRR, as provided in the Memorandum of Understanding, was formalized.6

  • 2. "Indonesia submits draft law on Aceh to parliament," Agence France Presse, January 27, 2006.
  • 3. 'Indonesian media reacts to passing of Aceh governance law," BBC Monitoring, July 12, 2006.
  • 4. "Keesing's Record of World Events," Indonesia 52 (July, 2006).
  • 6. "Office of the United Nations Recovery Coordinator For Aceh And Nias,"Humanitarian and Recovery Update – Aceh & Nias," November 16 -December 15, 2005.
2007

Full Implementation

Autonomy provision of the MoU was implemented in 2006. No further developments available.

2008

Full Implementation

No further developments observed.

2009

Full Implementation

No further developments observed.

2010

Full Implementation

No further developments observed.

2011

Full Implementation

No further developments observed.

2012

Full Implementation

No further developments observed.

2013

Full Implementation

No further developments observed.

2014

Full Implementation

No further developments observed.