NO.109

OVER $660 MILLION IN NEW PARTNERSHIP FUNDING AGREED BY AUSTRALIAN AND INDONESIAN MINISTERS

Australian and Indonesian Joint Commission Ministers have today agreed new reconstruction and development activities worth $663 million. This brings the total amount of funds committed under the $1 billion Australia Indonesia Partnership for Reconstruction and Development (AIPRD) to almost $950 million since March this year.

Overall priorities for the AIPRD are to help Indonesia to achieve broad-based economic growth and to improve Indonesia’s systems of emergency preparedness and response.

The new funding allocations agreed today will contribute to further post-tsunami reconstruction in Aceh. They will also help improve growth and living standards across Indonesia, where close to 100 million people still live in abject poverty.

The new activities agreed by the Joint Commission comprise:

• $300 million in highly concessional loan funds and a further $28 million in grants to be made available to support a major program of national road improvement designed to support regional economic and social development, particularly in Eastern Indonesia;
• $200 million in highly concessional loan funds and a further $100 million in grants to be made available to support the Government of Indonesia’s efforts to expand access to junior secondary education through construction and rehabilitation of school facilities in poor, under-serviced districts throughout Indonesia;
• $10 million to assist the World Food Program (WFP) meet the food security needs of Acehnese communities and families still recovering from the tsunami disaster;
• $10 million to repair primary and junior secondary schools in conflict affected areas in northern Aceh, complementing ongoing work by Australia to rebuild and re-equip schools damaged elsewhere in Aceh by the tsunami;
• $8 million to complete rebuilding the main port facility in Banda Aceh and restore port services for small traders, reconstruction authorities and passengers from outlying islands; and
• $7 million to support local enterprises and livelihoods development in tsunami affected areas.

Mr Downer will travel to Banda Aceh tomorrow to review progress in implementing Australian funded relief and reconstruction projects.

CANBERRA

7 December 2005

Contact:

David Alexander   Treasurer’s Office   02 6277 7340

Chris Kenny   Mr Downer’s Office   02 6277 7500