IV-240 ACEH : SETTING THE PACE FOR AGRICULTURAL MODERNIZATION IN INDONESIA 1 Tahlim Sudaryanto 2 Armen Zulham 3 Introduction Following the tsunami of 26 December 2004 in Aceh, there was an enormous international and national relief effort in Aceh for restoration of various economic and environment aspects both in the affected and unaffected areas. During the eleven month After tsunami, the government, international and national NGO began to look beyond the action for short term and long term need to restore and strengthen the livelihoods of people affected by tsunami. In NAD’s agriculture sector there was a big awareness of the tsunami impacted to agriculture production. During the post tsunami, there are two issues related to agriculture planning and development namely : 1. The way to rehabilitate agriculture land areas and the direction of agriculture development policy in tsunami affected area. 2. Whether farmers from the non affected areas face any problem in the distribution of agriculture products from the producer center to the market places including the price of the products at the producer level?. Related to issue in point 1, We need to identify the potential area for agriculture production system, in the tsunami affected region. This issue also relate to the availability of factor production required for the cultivation areas and the direction of agriculture policy in 656 villages, a long the coastal areas affected by tsunami. (Figure 1). The second issue related to off farm aspect both in the affected and non affected areas. To tackle this issue special effort needed to encourage the development of agro industries and the market of agriculture products as an incentive to agriculture production sector. Therefore, it is expected during the post tsunami the role of agro industry in NAD’s agriculture become important and 1 Paper Presented at the Agriculture Rehabilitation and Consolidation Workshop in Banda Aceh on 22 – 23 Nov. 2005. Sponsored by, FAO and BRR. 2 Director of, the Center for Agriculture Socio Economic and Policy Studies, Ministry of Agriculture 3 Research Staff at the Center for Agriculture Socio Economic and Policy Studies, Ministry of Agriculture