Japan provides $146m grant to RI, promises more help

Japan provides $146m grant to RI, promises more help

Adianto P. Simamora, The Jakarta, Jakarta

The Japanese government has extended a 14.6 billion yen (about
US$146 million) grant to Indonesia for the immediate purchase of
emergency relief goods for Aceh as well as rehabilitation work in
the affected areas.

In a simple ceremony held at the Indonesian Foreign Ministry
building in Jakarta on Monday, the Japanese Ambassador to
Indonesia, Yutaka Iimura, and the ministry's secretary general
Sudjadnan Parnohadiningrat signed a diplomatic note to seal the
transfer. Indonesian Foreign Minister Hassan Wirayuda was also
there to witness the signing.

"This grant was pledged to President Susilo Bambang Yudhoyono
by Japanese Prime Minister Junichiro Koizumi, who visited Jakarta
to attend the Special ASEAN Leaders' Meeting held on Jan. 6,
2005," Ambassador Iimura said.

"This grant will be used effectively for the purchase of
emergency relief goods and restoration work in the affected
areas," Iimura told reporters.

The money, which is going to be disbursed immediately, is part
of the $500 million in aid pledged by Koizumi to all the tsunami-
affected countries.

He said that $250 million of that would be channeled through
the international organizations.

"Our Prime Minister has pledged to provide assistance to the
maximum extent to the Indonesian government," Iimura reiterated.

Japan has focused its humanitarian relief on the western
coastal areas around Meulaboh town, the worst-hit area.

The Japanese government has distributed some $370,000 in food
and non-food items, such as generators, blankets and water
purification equipment to displaced persons camps in Aceh.

Japan has also decided to provide a $1.5 million emergency
grant directly to the Indonesian government for the procurement
of necessary goods and services related to the emergency.

The country has also sent a medical team, including four
doctors and seven nurses, who are currently working in a field
hospital set up in Meulaboh.

In addition, according to Iimura, 670 Japanese military
soldiers, along with three navy ships, five helicopters and 2
Hercules aircraft were now on their way to Aceh. This deployment
is Japan's largest since World War II.

Indonesia and Japan will set up a committee to monitor relief
efforts.

Japan is also willing to continue working with the Indonesian
government in rebuilding the tsunami-devastated areas, Iimura
said while adding that Tokyo was waiting for the results of an
assessment being conducted by Indonesia and other international
organizations.

"We are still waiting for the outcome of the assessment
conducted by Bappenas (the National Development Agency), World
Bank, Asia Development Bank and Japan Bank for International
Cooperation.

"And as soon as we get that, we can begin making concrete
plans for the reconstruction. We will do our best to help and
money will be decided later after the Indonesian government comes
up with a concrete plan," he said.

Coordinating Minister for the Economy Aburizal Bakrie said on
Monday that the rebuilding of Aceh would cost $4 billion over
five years.

Meanwhile, Hassan said that the government had appointed
international accounting firm Ernst and Young to audit all the
assistance provided by foreign countries to the Indonesian
government.