Germany provides $30m fund for RI

Germany provides $30m fund for RI

The Jakarta Post, Jakarta

The German government has agreed to provide Indonesia with US$30
million worth of funds to help finance various development
programs, according to a press statement from the German Embassy
in Jakarta.

Some $28.5 million would be directed towards development
programs in the areas of economic reform, health, transport and
decentralization, and the remaining $1.5 million has been
allocated towards a poverty reduction program.

The statement, however, did not specify whether the fund was
provided as a loan or in the form of grant.

Germany also expressed an interest in examining a possible
contribution to the post-peace agreement process in Aceh
province.

The Indonesian government and the Free Aceh Movement (GAM)
signed the cessation of hostilities agreement last week in
Geneva, Switzerland, to end the war in Aceh.

Earlier this month, the government of Indonesia and Germany
signed a debt swap deal worth around $25.6 million, under which
Indonesia would obtain debt relief of that amount, provided the
government allocates half of the funds to promote science
education.

The debt swap deal with the German government is Indonesia's
first such deal, and another debt swap worth $23 million is
currently being negotiated.

The government is struggling to seek ways to help ease the
huge burden of foreign debts inherited from the previous Soeharto
regime.