Australia to increase aid for Indonesia
JAKARTA (JP): Australia is committed to increasing aid to Indonesia under the Consultative Group for Indonesia (CGI) this fiscal year.
"As I told Mr. Ginandjar, Australia has always supported Indonesia in CGI because, back to the 1960s, we were in fact one that introduced and founded the consultative group," visiting Australian Minister for Foreign Affairs, Senator Gareth Evans, told reporters here on Saturday after signing an aid agreement with Minister of National Development Planning Ginandjar Kartasasmita.
He did not elaborate on the planned aid increase, but said: "We are very strongly committed to helping development of the country ... as far as it is needed."
Australia, one of Indonesia's creditor members of CGI, last year pledged to provide US$40.2 million in aid for Indonesia, as compared to $73 million in 1992/1993, $38.8 million in 1991/1992, $38 million in 1990/1991 and $35.8 million in 1989/1990.
Government officials have frequently said that CGI's aid for this fiscal year will remain at last fiscal year's level of $5.11 billion. The World Bank-chaired CGI is scheduled to meet in Paris on July 7 and July 8 to arrange new pledges for Indonesia.
Priority
Evans said Saturday that Australia's aid is aimed mainly at supporting Indonesia's program of poverty alleviation.
He said some 40 percent of Australia's aid for ongoing projects is used for development programs in eastern provinces, which are geographically close to Australia.
Evans said that the current A$25 million (US$18.44 million) aid, whose agreement was signed on Saturday, for example, will be used for the construction of water supply and sanitation projects for some 350,000 of the 1.5 million inhabitants of Flores Island.
The Indonesian government will provide some Rp 15.17 million ($7,023) and the public some Rp 3.33 million for the projects.
Flores is still recovering from the devastating effects of an earthquake and tidal waves which struck in December 1992, killing some 2,000 people and destroying community infrastructure, including water supply and sanitation facilities.
Evans said that Australia will also grant A$15.6 million this year for watershed area development in Bobonaro, East Nusa Tenggara, another A$3.02 million grant for an integrated agricultural project in East Timor, in addition to a new grant of A$25.33 million for reconstruction and development of water supply and sanitation facilities in Flores.
In a related development, a consortium of Australian and Indonesian companies is now cooperating on surveying and registering millions of land parcels, Evans said.
"Accurate land titles are an essential requirement for development as they verify legal rights and allow individuals and institutions to obtain approvals and credit to develop their land," he said.
"The $192 million project will ease conflicts over land acquisition, ownership, compensation and resettlement and relieve procedural delays," Evans said.
Australia is providing $26 million over five years for the project. (fhp)