Tue, 12 Jul 2005

U.S. gives $120m for governance development

The Jakarta Post, Jakarta

The U.S. government has committed an additional US$120 million in technical assistance grants to support Indonesia to strengthen its democracy and build more effective local governance.

The commitment to provide the assistance, which is part of a multi-year government capacity-building program between the U.S. and Indonesia, was marked in a signing of a memorandum of understanding on Monday between the two governments at the National Development Planning Agency (Bappenas).

Representing the Indonesian government was Bappenas deputy for political affairs I Dewa Putu Rai, while the U.S. was represented by the U.S. Agency for International Development (USAID) director William M. Frej.

Witnessing the signing was Bappenas secretary Koensatwanto Inpasihardjo and U.S. Ambassador to Indonesia Lynn B. Pascoe.

Frej said the assistance would be used in three main programs, all of which would involve the participation of U.S. government representatives, Indonesian government institutions -- both at the national and regional levels -- and local civil society groups.

The local governance support program, will provide technical assistance and training to administrations, legislatures, civil society and the media in up to 100 local districts.

The democratic reform support program, meanwhile, will assist national institutions and civil society organizations in promoting open dialog and creating improved policy and laws.

The support for peaceful democratization program will also provide assistance in the area of conflict resolution, helping communities overcome the impact of conflict and advancing the peaceful resolution of strife.

Pascoe anticipated that the assistance would further support Indonesia's democratization process, following last year's general elections -- which was a milestone for democracy -- and this year's regional elections, continuing through to the establishment of good governance for the people's benefit.

"Democracy must go hand-in-hand with good governance," he said.

Frej further said that as of last year, the U.S. had provided some $750 million in technical assistance grants through the bilateral partnership.

The U.S. recently provided $400 million in grants for the rehabilitation and the reconstruction of the tsunami-stricken Nanggroe Aceh Darussalam and North Sumatra's Nias island.