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This study examined the effectiveness of Permanent Housing Reconstruction (PHR) in the Reconstruction and Rehabilitation (RR) phase that had a significant effect on the socio-economic climate of affected communities (ACs). This research was based on 60 respondents from Banda Aceh and West Aceh, which was the two most tsunami affected region including beneficiaries from the local administration offices, the local NGOs and INGOs, and the local affected communities. PHR was the only project in this phase that gave ACs a sense of ownership and legitimate participation through Komiter Perumahan Rakyat (KPR), a local housing committee selected due to its trustworthiness and transparency to monitor contractors with the assistance of INGOs. However, the findings show that PHR experienced many problems such as the lack of human capital, resources and skills in Aceh had attracted an influx of contractors from Medan Sumatra. This issue indirectly effect the quality of the PHR depriving the ACs of good socioeconomic and livelihood sustainability due to lack of coordination and instant spending of the tsunami fund. Issues such as pattern of foreign employment caused funding to flow out of the region into other areas, depriving the local market of sustainable business activity. These obstacles eventually affected ACs’ long-term ownership of their houses. This chain of problems kept them vulnerable to disaster, which later affected their capacity building (CB) and livelihood sustainability. This paper discusses the issues, problems and challenges faced by the main stakeholders such as the beneficiaries representing ACs, local government and INGOs in PHR.

Permanent Housing Reconstruction in Post Tsunami Reconstruction in Aceh, Indonesia: Quality vs. Quantity