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.