Indonesia is frequently hit by natural disasters. The archipelagic nature of Indonesia, combined with its placement in the ‘Pacific Ring of Fire’, makes the country naturally vulnerable to earthquakes, tsunamis and volcano eruptions. Deforestation and bad drainage systems have often caused landslides and floods. The country has also been hit by several other disasters.
After the tsunami in December 2004, Norway has supported The World Bank-organized Multi Donor Fund for Aceh and Nias (MDF) with around 19 million USD. The MDF finances projects within the fields of:
- Recovery of communities
- Recovery of larger infrastructure and transport
- Rebuilding Governance
- Sustaining the environment in the reconstruction process
- Recovery of the economy

In addition to supporting the MDF, funds have been channeled through UN organisations, NGOs and Public Institutions. Other projects and organisations that still receive funds in Aceh-Nias:
1. Support to build up a Spatial Information and Mapping Center in Banda Aceh. Implemented by the BRR (Reconstruction and Rehabilitation Agency).
2. Support to Women Entrepreneurs in Aceh, implemented by APINDO (Indonesian Association of Enterprises) in cooperation with their Norwegian sister organisation NHO.
3. Support to UNORC (the United Nations Office of the Recovery Coordinator for Aceh and Nias) as a coordinating agency between the Provincial Government, BRR, UN organisations and other stakeholders in the reconstruction of Aceh and the peacebuilding process.
4. Support to the consolidation of the peace in Aceh through Interpeace (International Peacebuilding Alliance). The project has a special focus on promoting women's participation in the peace building process.
3.5 million USD has been provided for the restoration work after the 2006 Java earthquake. In total, Norway has given 56 million USD to emergency relief and reconstruction work since 2004.