World Bank Assisting Government to Assess Losses and Support Reconstruction in Yogyakarta

Jakarta, May 30, 2006 -- The President of the World Bank, Mr. Paul Wolfowitz, has promised the full support of the World Bank Group for reconstruction in the aftermath of the devastating earthquake in Yogyakarta.

As the humanitarian relief effort gathers pace, the World Bank will focus immediately on assisting the Government of Indonesia in the preparation of a full assessment of the earthquake damage and losses to determine the overall needs for the coming phase of rehabilitation and reconstruction. The Government
is aiming to table a report by mid-June when the Consultative Group for Indonesia will hold its annual meeting between the Government and donor partners.

Yesterday, the Government of Indonesia and the World Bank chaired a meeting of over 100 donors to begin the coordination of the reconstruction phase.

Discussions are now underway on the major task of repairing vital infrastructure and rebuilding houses. To ensure the most rapid and effective delivery of this assistance, the Government and the Bank are discussing how to reallocate the resources of existing projects with already established networks in Yogyakarta and Central Java.

Through community-driven projects such as the Kecamatan Development Program and Urban Poverty Program, there are already up to 500 professional facilitators on the ground that can be mobilized to work with communities to channel assistance in a transparent and accountable manner to high priority needs, such as housing and local infrastructure. “The local communities in Yogyakarta and CentralJava are among the strongest in Indonesia, even after this horrible tragedy, “said Country Director Mr. Andrew Steer. “We are working to ensure that they get funds into their own hands quickly and efficiently to take charge of their own recovery.”

Already, efforts to restructure and refocus existing programs in supporting provincial health care provision, community infrastructure, and rural water supply are underway by which the Bank could reallocate $50-60 million to reconstruction in Yogyakarta. Other sources of funding including grants are also being actively discussed especially for rebuilding houses. “We will do our utmost to ensure there are enough funds for the recovery and reconstruction,” said Mr. Steer, “but the challenge will to find mechanisms that make the most of the incredible wealth of talent and experience already existing across this historic and important region.”

In Jakarta: Prabha Chandran & Wiwiek Sonda
Tel :(62 21) 5299-3084/ 3146,

In Washington: Mohamad Al-Arief
Tel: 1-202-458-5964;
_________________________ Indonesian Business and Investment News Aggregator