This report shows that some investorsstill perceive Aceh as a risky place to do business, despitebeing relatively peaceful for almost four years. Securityincidents, relatively common in post-conflict environments,deter businesses and individuals from investing in Aceh,robbing the economy of necessary capital and innovation.Other consequences of the conflict, including forms ofillegal taxation, also hurt investment. The Government ofAceh is aware that until businesses and people change theirperceptions of security in Aceh and feel confident that theycan reap the full benefits of their investments, littleinvestment will be forthcoming. As a result, growth in theprovince will be limited and efforts to reduce poverty lesseffective. There are other problems affecting Aceh'seconomy. These include the business environment, access tocapital and the quality of infrastructure. This report seeksto show how these different factors affect investment andgrowth, and provides recommendations on how the Governmentmight prioritize and sequence policy changes to improve theinvestment climate.