Badrus Sholeh – Aceh is due to hold its elections for governor in December, an event that underscores the significant contribution democracy has made to peace since Aceh's 2006 ballot, held a year after the peace agreement between the Freedom Aceh Movement and the central government.

Many Acehnese have welcomed this new sense of democracy. About 78 percent of voters participated in the 2009 presidential elections, the largest turnout for direct elections in any region in the country. But as the December poll approaches, flaring tensions among Acehnese leaders – especially between former elites of the movement, known as GAM – have observers concerned about potential threats to the longevity of peaceful democracy in Aceh. A number of former GAM combatants were killed recently and local Acehnese see this as closely related to the tensions and rivalries among political groups in the province.

But the international community has invested billions of dollars in supporting Aceh's democratic transition. At an Asean leaders summit in Jakarta in 2005, just two weeks after the Indian Ocean tsunami, the leaders of 26 nations and international organizations agreed to donate $4 billion in aid for rehabilitation and reconstruction in Aceh.

Australia also contributed a billion Australian dollars ($1.1 billion at today's exchange rate) over five years through the Australia Indonesia Partnership for Reconstruction and Development. Of this aid, millions of dollars were targeted at the support and reintegration of former GAM members. The programs associated with this funding will help to ensure the continuation of rehabilitation and integration by reducing the inequitable distribution of resources, supporting stability and peace, and rebuilding communities.

The Multi-Stakeholder Review, a partnership between the Indonesian Coordinating Ministry for Legal, Political and Security Affairs, the National Development Planning Agency and the Aceh Peace-Reintegration Agency, reports that the total amount committed to the process of reintegration and peace building is Rp 9 trillion ($1 billion) – one-seventh of the tsunami reconstruction funds. And the Acehnese government will receive close to $7.9 billion in special autonomy funding between 2008 and 2027 as a result of the Law on the Governing of Aceh.

Adequate funding is of crucial significance in maintaining the peace building process in Aceh and promoting reconciliation. Decentralization and democratization have positively affected the transition toward peace.

But for the current positive momentum to continue, area-specific institutions will need to be strengthened and, where necessary, created. The importance of institutions for supporting peace in post-conflict regions cannot be understated. In Aceh, strong institutions in local government, the legislature and civil society are needed.

But the ongoing dispute between the winning Aceh Party and the incumbent governor's camp over regulations pertaining to the 2011 elections now threatens to destabilize efforts to implement further reforms. The Aceh Party's threat to boycott the elections is counterproductive. If this dispute is not resolved it will overshadow more pressing issues in Acehnese development and the peace building program.

These include capacity building for rural Acehnese so they can revitalize important agricultural initiatives, such as the region's high-quality coffee plantations. Another issue is the high unemployment rate. Law enforcement training is also important if lawmakers are to work out effective regulations for Aceh's development.

The Truth and Reconciliation Commission regulation, which was keenly anticipated by human rights organizations and victims of conflict, is still pending and is another issue that needs prioritizing.

The World Bank reports that investors still perceive Aceh as a risky place to conduct business, meaning that growth in Aceh will be limited and efforts to reduce poverty will likely lose their effectiveness. This must be remedied.

The Acehnese government must change the perception of the region so it is seen as a secure and safe business environment. Providing high-quality infrastructure will be a big part of this. These challenges will not be overcome unless Aceh's political parties and leaders give priority to the broad interests of local inhabitants.

The fear of political violence is rising after the deaths of local leaders and other violence suspected of being closely related to rivalries among local political groups. If these political elites and civil society groups cannot manage their political conflicts, it will destroy a great deal of important investment in the region.

[Badrus Sholeh is a Ph.D. student at the School of International and Political Studies at Deakin University in Melbourne.]