Aceh is located on the northern tip of the Indonesian island of Sumatra. Aceh is economically and strategically important to Indonesia. Aceh’s economic value lies in its source of oil and gas deposits, primarily from the Exxon-Mobil-run Arun LNG plant just offshore from North Aceh (Pasai). In 1997 Aceh provided 17 per cent of Indonesia’s almost US$12 billion in oil and gas export revenue, making Arun Indonesia’s fourth largest export earner. Aceh also has extensive mining, forestry and plantation agriculture, and potential as a major centre of trade.
Aceh strategic value is in its bordering the province of North Sumatra, and its position at the northern end of the Malacca Straights, which is one of the world’s busiest waterways and through which travels around a quarter of the world’s oil, two-thirds of liquid natural gas and up to a third of all other trade. Aceh has a distinctive majority language and culture, including a widely held devout adherence to Sunni Islam. Aceh was one of the first regions to be converted to Islam (from the 13th century or even before) and the Kingdom of Aceh had a long history of commercial and cultural links with the Islamic world of the Middle East and India. Today it retains a deeper attachment to Islamic culture than most parts of Indonesia.
After more than 25 years of violent conflict in the regions, both of the warring parties the GAM (Free Aceh Movement) and the Indonesian government decided to start the peace talks facilitated by a Finland-based NGO, the Crisis Management Initiative, and led by former Finnish President Martti Ahtisaari. Earlier efforts of the peace talks had failed, but for a number of reasons, including the tsunami, peace prevailed in 2005.
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