Sat, 01 Mar 2003

Elections, Bali and Aceh projects boost U.S. aid to Indonesia

Berni K. Moestafa, The Jakarta Post, Jakarta

Preparing for next year's elections, recovering Bali from the terrorist attacks, and building peace in the war-torn province of Aceh have made the case for a US$10 million increase in funds to Indonesia from the United States Agency for International Development (USAID) this year.

Outgoing USAID director in Jakarta, Desaix Terry Myers, said on Friday that the agency's 2003 budget for Indonesia had grown to $130 million from $120 million last year.

"For this year, our main priority is support for the election, support for Aceh, and the recovery of Bali," said Myers, who has worked in Indonesia for almost 10 years.

USAID's budget for Indonesia had increased by more than twice the amount in 1998, which he said was $53 million.

Depending on its need, the agency has prepared another $10 million in food aid assistance, making a total budget of $140 million.

This year's increase of $10 million was approved by Washington in support of USAID's new priorities this year, Myers explained.

USAID assistance to Indonesia has been steadily rising since 1998, the year after the financial crisis in Indonesia broke out.

"They (Washington) have been remarkably supportive, if you think that in 1999 we were suppose to have a budget of $33 million. Instead, we had a budget of $70 million, and now we have a budget of $130 million," said Myers.

"I think a number of people watch Indonesia closely, and are impressed by the ambition of the reform you are trying to undertake," he said, adding, however, that frustration over the slow pace of reforms persist.

Indonesia amended its 1945 Constitution last year to pave the way for the country's first ever direct presidential election in 2004.

Myers said that USAID had set aside $18 million for this year to help prepare for the election.

"The KPU (General Elections Commission) is faced with a huge administrative challenge, so we would like be able to help the KPU," he said, referring to the semi-independent commission which is in charge of organizing the elections.

Drawing upon its experience in assisting Indonesia in its 1999 landmark election, USAID means to help train the election monitors.

"We have new election laws, and you are talking about increasing from 100,000 polling places to 300,000, so (consider) the amount of training that people will have to do," he said.

On Bali, the focus is on helping it recover from the Oct. 12 terrorist bombings that shattered the resort island's image as a safe tourist haven in Indonesia.

Recovery has been made difficult, as several countries like Australia and the U.S. have maintained travel advisories against coming here.

The U.S. plans for a war on Iraq further dims prospects for a speedy recovery, with one industry expert predicting Indonesia to lose about 200,000 tourists and around $200 million in revenue this year.

"We have developed a program in Bali that is about $1 million in value for local groups and universities to identify their needs and to try and help people cope with Bali," Myers said.

USAID has also raised assistance to help build peace in Aceh.

The province has seen almost three decades of war waged by the local rebel group, the Free Aceh Movement (GAM) against the government. More than 10,000 died during the war. Now, hopes for a return to lasting peace run high, following the signing of the peace accord last December.

USAID, Myers said, had developed a more active program, including helping widows' associations with selling machines, providing fishing nets to fishermen cooperatives and working with the Red Cross on blood donations.