MEDIA RELEASE
Released By:
Downer
I am pleased to reaffirm Australia's continuing support for Indonesia's efforts to reform and rebuild following the Asian financial crisis through our pledge at the Consultative Group on Indonesia (CGI) meeting in Paris.
Australia's commitment to helping Indonesia is reflected in our pledge of A$121 million in assistance for 1999-2000.
CGI participants, including Australia, praised Indonesia's reform efforts over the past year. While there are early signs of recovery, the donor community strongly encouraged Indonesia to stay the course of political and economic reform.
All key bilateral donors, including Australia, also raised the issue of East Timor, noting Indonesia's commitment to provide the security necessary for the conduct of the August popular consultation in a free and fair manner.
The objective of Australia's assistance to Indonesia is to contribute to economic and social stability by helping Indonesia to alleviate the social impacts of the crisis on the most vulnerable groups and to return to sustainable growth and development.
Activities funded by Australia will focus on providing support for social safety nets, strengthening of civil and economic governance, and building the platform for the resumption of sustainable growth and development.
The program of capacity building in economic and financial management, including reform of state-owned enterprises, bankruptcy, and public sector capacity building, that was commenced last year will continue in 1999-2000.
Australia's aid program to Indonesia also recognises the importance of maintaining human resources and social infrastructure as a basis for economic recovery. In the health sector, Australian support will be targeted at primary health care with particular emphasis on the needs of women and children.
Australia is also helping to address the more immediate needs of Indonesians affected by the crisis through the provision of humanitarian assistance. An additional A$10 million in food aid will be provided through the World Food Programme (VYTP) for the distribution of around 16,000 tonnes of rice to help 6 million people mainly in urban centres in Java, targeted at the elderly, pregnant women, mothers and young children. The food aid will also be used for a school feeding program and to assist people who have been displaced as a result of tensions in different parts of Indonesia.
Media contacts:
Matt Francis [Ministerial] (02) 6277 7500 / 0419 206 890
Deb Nesbitt [Departmental] (02) 6206 4960 / 0417 683 126
Media releases and speeches are also available from DFAT via the Internet at http://www.dfat.gov.au