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.