The report took stock of the mammoth task of rebuilding almost a year after walls of water slammed into 800 kilometres (496 miles) of coastline in Aceh province and Nias island, leaving some 168,000 people dead or missing.

The ministry-level Rehabilitation and Reconstruction Agency for Aceh and Nias (BRR) conceded the government was tardy in formulating a response.

The central budget system almost broke down due to reforms coincidentally beginning this year, "leaving considerable resources assigned by the government for recovery languishing in Jakarta until as late as September 2005".

More than 67,000 people are still living in tents -- many now mouldy -- with some 50,000 still in temporary barracks, the report said. About half a million people were initially displaced but many have moved in with relatives.

Hundreds of international and local charities pledged help that some were ill-equipped to offer. Donors took months to transfer promised money while inappropriate government policies caused further delays, the report said.

Around 30,000 houses are now either complete or being built. "Is it fast or slow? Well it depends on how you want to see it," BRR head Kuntoro Mangkusubroto told a press briefing at the report's launch, noting that the Indonesian housing agency could provide 60,000 houses per year.

"I'm afraid that I don't agree with you saying that it was slow. But knowing 30,000 is only one quarter of the 120,000 that needs to be built -- that means three-quarters are still in tents or barracks -- if those people say we are slow, that is acceptable," he said. "That's why we are working very hard now."

World Bank representative to Indonesia Andrew Steer praised the progress.

"Way back in January or February professionals knew that it would not be possible to build more than 30,000 in a year. There are currently 5,000 houses a month being started and finished. This is very good performance," he said.

Despite the uncertain start, the report said, "the recovery program has now gained momentum and funds are starting to flow for reconstruction projects."

But the BRR warned future housing projects are likely to be tougher than those completed so far.

"Most housing projects today are in easier-to-reach areas and do not require large amounts of new land; the most difficult housing projects are yet to start," it said.

Among the array of data provided, the agency said 235 of 3,000 kilometres of damaged roads have been rebuilt; 335 of 2,000 damaged schools have been built or are under construction; and 13,000 of 60,000 hectares of agricultural land have been restored.

Restoring livelihoods after a loss of some 1.2 billion dollars in fishing, farming and manufacturing has been another major challenge, with a construction boom providing many jobs that will be unsustainable in the long run.

In one brighter area, agriculture has bounced back better than expected, with 40,000 families returning to the land after rains flushed out salinity that they feared would reduce soil fertility.

As reconstruction moves into its second year, the BRR called for better coordination among stakeholders.

"It is time to get beyond sentiments of 'my project, or yours' and recognise the need for active coordination," it said.

More than 400 local and international charities are operating in Aceh and Mangkusubroto had earlier threatened to name and shame those who are not coordinating properly.

But the BRR head said Thursday that they had improved after he sent them threatening letters.

"I cancelled my decision... so they can have a good Christmas this year," he quipped.

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