Australia donates $500m more for Aceh, infrastructure

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.