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Donors pledge $5.1 billion to Indonesia JAKARTA - A grouping of donor nations has pledged to provide Indonesia with $5.1 billion in aid this year, comprising $3.4 billion in regular assistance, as well as $1.7 billion to help rebuild northern Sumatra, where about 166,000 people were killed by last monthís earthquake and tsunamis.
The $1.7 billion for emergency relief, rehabilitation and reconstruction in tsunami-hit Aceh and North Sumatra provinces consists of $1.2 billion in grants and $500 million in soft loans, Coordinating Minister for the Economy Aburizal Bakrie said Thursday (20/1/05) after the conclusion of the 14th annual meeting of the Consultative Group on Indonesia (CGI) in Jakarta.
He said the $3.4 billion in regular aid consists of $2.8 billion in fresh loans and a further $600 million in grants. Most of the loans will go toward reducing the state budget deficit, while the grants will be channeled through non-government organizations or directly to the people, he added. The CGI, which comprises 21 donor countries and 11 multilateral donors, provided Indonesia with $3.1 billion in soft loans and grants in 2004. The groupís major donors are Japan, the World Bank and the Asian Development Bank (ABD).
Bakrie said countries including Germany, France and Italy plan to allocate additional assistance to Indonesia in the form of debt swap deals, the amounts and details of which will be discussed in the future. He said several countries also agreed to give Indonesia a debt moratorium, in line with a decision taken by the Paris Club group of creditor countries on January 12, aimed at allowing the government to reallocate its resources for reconstruction of tsunami-affected areas.
The CGI meeting was attended by delegations from the 21 donor countries and 11 multilateral institutions, as well as representatives of 13 non-governmental organizations. Indonesia was represented at the meeting by 13 cabinet ministers.


Link to related event Related event:
Boxing Day tsunami in Indonesia


Posted in Earthquake @ 21 January 2005 00:01 CET by Jeroen · 'Blog' RSS feed · permalink

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