Aceh ? What is that?

Aceh (pronounced [ʔaˈtɕɛh], generally anglicized as /ˈɑːtʃeɪ/) is a special region (daerah istimewa) of Indonesia, located on the northern tip of the island of Sumatra. Its first full name: Aceh Darussalam (1205-1959) was given by Sultan Meurah Johan Syah bin Adi Genali of Lingga Gayo. Then, Daerah Istimewa Aceh (1959–2001), Nanggroë Aceh Darussalam (2001–2009) and Aceh (2009–Present). Past spellings of its name include Acheh, Atjeh and Achin. The Aceh province has the highest proportion of Muslims in the country with regional levels of Sharia law.^[4]

It is thought to have been in Aceh where Islam was first established in Southeast Asia. In the early seventeenth century the Sultanate of Aceh was the most wealthy, powerful and cultivated state in the Malacca Straits region. Aceh has a history of political independence and fierce resistance to control by outsiders, including the former Dutch colonists and the Indonesian government. Aceh has substantial natural resources, including oil and natural gas—some estimates put Aceh gas reserves as being the largest in the world. Relative to most of Indonesia, it is a religiously conservative area.^[5]

Aceh was the closest point of land to the epicenter of the massive 2004 Indian Ocean earthquake, which triggered a tsunami that devastated much of the western coast of the region, including part of the capital of Banda Aceh. Approximately 170,000 Indonesians were killed or went missing in the disaster, and approximately 500,000 were left homeless.^[6] This event helped trigger the peace agreement between the government of Indonesia and the Free Aceh Movement (GAM), mediated by former Finnish president Martti Ahtisaari, with the signing of a MoU on August 15, 2005. With the assistance of the European Union through the Aceh monitoring mission as of December 2005, the peace has held. It is close to the Andaman and Nicobar Islands of India and separated from them by the Andaman Sea.

Administration

Within the country, Aceh is governed not as a province but as a special territory (daerah istimewa), an administrative designation intended to give the area increased autonomy from the central government in Jakarta.

Administratively, the province is subdivided into 18 regencies (kabupaten) and 5 cities (kota). The capital and the largest city is Banda Aceh, located on the coast near the northern tip of Sumatra. Some local areas are pushing to create new autonomous areas, usually with the stated goal of enhancing local control over politics and development.

Regencies of Aceh

Name	Capital	Est.	Statute	Area (km²)	Population 2010 Census
Aceh Besar Regency	Jantho	1956	UU 24/1956	2,969.00	350,225
West Aceh (Aceh Barat) Regency	Meulaboh	1956	UU 24/1956	2,927.95	172,896
Southwest Aceh (Aceh Barat Daya) Regency	Blangpidie	2002	UU 4/2002	2,334.01	125,991
Aceh Jaya Regency	Calang	2002	UU 4/2002	3,817.00	76,892
South Aceh (Aceh Selatan) Regency	Tapaktuan	1956	UU 24/1956	3,851.69	202,003
Aceh Singkil Regency	Singkil	1999	UU 14/1999	2,597.00	102,213
Aceh Tamiang Regency	Karang Baru	2002	UU 4/2002	1,939.72	250,992
Central Aceh (Aceh Tengah) Regency	Takengon	1956	UU 24/1956	4,315.14	175,329
Southeast Aceh (Aceh Tenggara) Regency	Kutacane	1974	UU 7/1974	4,189.26	178,852
East Aceh (Aceh Timur) Regency	Idi Rayeuk	1956	UU 24/1956	6,040.60	359,280
North Aceh (Aceh Utara) Regency	Lhoksukon	1956	UU 24/1956	3,236.86	529,746
Bener Meriah Regency	Simpang Tiga Redelong	2003	UU 41/2003	1,457.34	121,870
Bireuen Regency	Bireuen	1999	UU 48/1999	1,901.22	389,024
Gayo Lues Regency	Blangkejeren	2002	UU 4/2002	5,719.57	79,592
Nagan Raya Regency	Suka Makmue	2002	UU 4/2002	3,928.00	138,670
Pidie Regency	Sigli	1956	UU 24/1956	2,856.52	378,278
Pidie Jaya Regency	Meureudu	2007	UU 7/2007	574.44	132,858
Simeulue Regency	Sinabang	1999	UU 48/1999	2,051.48	80,279
Banda Aceh	*	1956	UU 24/1956	61.36	224,209
Langsa	**	2001	UU 3/2001	262.41	148,904
Lhokseumawe	**	2001	UU 2/2001	181.06	170,504
Sabang	**	1967		153.00	30,647
Subulussalam	**	2007	UU 8/2007	1,011.00	67,316

Notes:

1. (*) is a city and also the provincial capital and (**) is a city.
2. UU is an abbreviation from Undang-Undang (the Indonesia statute of law).

Economy of Aceh

In 2006, economy of Aceh grew by 7.7% after having minimal growth since the devastating tsunami.^[26] This growth was primarily driven by the reconstruction effort, with massive growth in the building/construction sector.

The ending of the conflict, and the reconstruction program has resulted in the structure of the economy changing significantly since 2003. Service sectors now play a more dominant role, whilst oil and gas production continues to decline. The economy continues to rely upon depleting oil and gas production and agriculture.

Sector (% Aceh GDP)	2003	2004	2005	2006
Agriculture and fisheries	17.0	20.0	21.4	21.2
Oil, Gas and Mining	36.1	30.4	26.2	24.9
Manufacturing Industries	20.2	18.3	15.9	14.3
Electricity and Water Supply	0.1	0.1	0.2	0.2
Building / Construction	3.4	3.8	3.5	5.1
Trade, hotels and restaurants	11.2	12.0	14.3	15.0
Transport & Communication	3.3	3.8	4.8	5.2
Banking & other Financial	0.9	1.2	1.2	1.3
Services	7.8	10.4	12.7	12.9

After peaking at 41.5% in December 2005, inflation has continued to decline steadily and was 8.5% in June 2007, close to the national level in Indonesia of 5.7%. Persistent inflation means that Aceh’s consumer price index (CPI) remains the highest in Indonesia. As a result, Aceh’s cost competitiveness has declined as reflected in both inflation and wage data. Although inflation has slowed down, CPI has registered steady increases since the tsunami. Using 2002 as a base, Aceh’s CPI increased to 185.6 (June 2007) while the national CPI increased to 148.2. There have been relatively large nominal wage increases in particular sectors, such as construction where, on average, workers’ nominal wages have risen to almost Rp.60,000 per day, from Rp.29,000 pre-tsunami. This is also reflected in Aceh’s minimum regional wage (UMR, or Upah Minimum Regional), which increased by 55% from Rp.550,000 pre-tsunami to Rp.850,000 in 2007, compared with an increase of 42% in neighboring North Sumatra, from Rp.537,000 to Rp.761,000.

Poverty levels increased slightly in Aceh in 2005 after the tsunami, but by less than expected.^[27] The poverty level then fell in 2006 to below the pre-tsunami level, suggesting that the rise in tsunami-related poverty was short lived and reconstruction activities and the end of the conflict most probably facilitated this decline. However, poverty in Aceh remains significantly higher than in the rest of Indonesia and a large number of the Acehnese remain vulnerable, reinforcing the need for a smooth landing after the reconstruction boom ends.

[edit] Ethnic and cultural groups

Banda Aceh's Grand Mosque

Aceh is a diverse region occupied by several ethnic and language groups. The major ethnic groups are the Acehnese (who are distributed throughout Aceh), Gayo (in central and eastern part), Alas (in southeastern), Tamiang (in Aceh Tamiang Regency), Aneuk Jamee (descendant from Minangkabau, concentrated in southern and southwestern), Kluet (in South Aceh Regency), and Simeulue (on Simeulue Island). There is also a significant population of Chinese, who are influential in the business and financial communities. Among the present day Acehnese can be found some individuals of Arab, Turkish, and Indian descent. Before the tsunami, the region of Meureuhom Daya (Lamno) used to have an unusually high number of people with fair complexions, blue eyes and blond hair, which local traditions attributed to Turkish or Portuguese ancestry.^[28]

The Acehnese language is widely spoken within the Acehnese population. This is a member of the Aceh-Chamic group of languages, whose other representatives are mostly found in Vietnam and Cambodia, and is also closely related to the Malay group of languages. Acehnese also has many words borrowed from Malay and Arabic and traditionally was written using Arabic script. Acehnese is also used as local language in Langkat and Asahan (North Sumatra), and Kedah (Malaysia), and once dominated Penang. Alas and Kluet are closely related languages within the Batak group. The Jamee language originated from Minangkabau language in West Sumatra, with just a few variations and differences.