Economy is main challenge for new Aceh governor-EU
Source: Reuters
BRUSSELS, Dec 18 (Reuters) - Managing natural resources properly to kickstart the economy will be the biggest challenge for the new governor of Indonesia's war-shattered Aceh province, a senior European Union peace monitor said on Monday. Aceh has the potential to triple coffee production and exports, including a possible deal with Starbucks <SBUX.O>, said Pieter Feith, head of an EU peace monitoring mission that ended last week after Aceh's first direct elections for governor. Aceh's problems are immense. More than 15,000 people died in 30 years of war between rebels and the government, while the Dec. 26, 2004, tsunami left 170,000 dead or missing and 500,000 homeless. "The focus is not anymore on security but on economy," the veteran Dutch peace monitor told reporters in Brussels, saying the security situation was now stable. Former separatist rebel Irwandi Yusuf looks certain to become governor after last week's elections. Feith said Yusuf would need to cooperate closely with Jakarta to kick-start the economy. "There is so much money (from natural resources) coming in Aceh in the coming years that it will need a strong administration to deal with this," as well as to prevent corruption, he said. Feith said Aceh would be allowed to keep 70 percent of the revenues from its natural resources. "This is significant because whereas natural gas and oil reserves are running down ... Aceh has significant resources in minerals, in palm oil, in rubber and other agricultural products like coffee," he said. "Coffee is of the highest quality in the world. Starbucks is going to -- hopefully going to -- conclude further arrangements with Acehnese producers." Feith said former U.S. President Bill Clinton, the U.N. special tsunami envoy, was keen for a deal with Starbucks to be concluded. "I think he will help," he added. "You can triple the production and the exports, particularly to America. It would be an enormous gain for the Acehnese economy," Feith said, adding that coffee production had been damaged by the conflict but could quickly be restored.
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