Australia donates $500m more for Aceh, infrastructure
Urip Hudiono, The Jakarta Post, Jakarta
Australia has committed an additional $A663 million (just under US$500 million) in aid to support Indonesia in the reconstruction of Aceh, as well as to develop infrastructure and education in other parts of the country.
The assistance, which is part of a five-year Australia- Indonesia Partnership for Reconstruction and Development program, was marked in a joint ministerial agreement on Wednesday between the two countries, represented by State Minister of National Development Planning Sri Mulyani Indrawati -- about five hours before she was sworn in as finance minister, replacing Jusuf Anwar -- and Australian foreign minister Alexander Downer.
With the new funding allocations, the total amount of money in grants and concessional loans committed since March under the program has reached A$950 million, from the total $A1 billion Australia pledged after the tsunami slammed into Aceh on Dec. 26, 2004.
"The new allocations agreed (upon) today will contribute to further post-tsunami reconstruction in Aceh," said Downer, who will be visiting Banda Aceh on Thursday to review Australian- funded relief and rehabilitation projects there.
"They will also help improve growth and living standards elsewhere in Indonesia, where there are still significant development needs."
A total of A$35 million in grants will be allocated for the province, including A$10 million to support the World Food Program (WFP) in meeting the immediate food security needs of communities still recovering from the disaster.
Another A$8 million will also be provided to continue the restoration of Banda Aceh's main seaport of Ulee Lheue, while A$7 million has been allocated to support local enterprise and livelihood development in tsunami-affected areas.
Meanwhile, A$10 million will be provided to assist in the repair, rebuilding and re-equipping of schools throughout Aceh, not only the schools damaged by the tsunami, but also the ones destroyed by war over the past several years.
Improving Indonesia's education sector is among the priorities of the donated money, with A$100 million in grants and A$200 million in loans provided to support the government's efforts in expanding access to junior high education through the rehabilitation and construction of school facilities in poor, under-serviced districts throughout the country.
The loans have come with extremely generous terms; zero interest and a 40-year repayment period in some cases.
Another A$300 million in loans, meanwhile, has also been allocated to improve 2,000 kilometers of roads and approximately 4.5 kilometers of essential bridging across Indonesia, particularly in eastern regions of the archipelago. Funds amounting to A$28 million will be allocated for the project's preparation, maintenance and other technical assistance.
Sri Mulyani said she hoped that the partnership funding would indeed support the government's priority of improving economic growth, creating more jobs and reducing poverty.
"And most importantly, it will surely help the rehabilitation process in Aceh," she added.