Indonesia: BRR Aceh-Nias receives $884 million reconstruction fund

Lhoknga, Indonesia-Relief - Finally, through a ceremony in Lhoknga, Aceh Besar, Indonesian government today disburse Rp 8.4 trillion ($884 million) of Aceh and Nias reconstruction fund, of which Rp 3.967 trillion ($440 million) goes directly to Rehabilitation and Reconstruction Agency for Aceh and Nias (BRR).

Head of BRR Aceh-Nias Kuntoro Mangkusubroto officially received the fund from Ministry of Finance's Director General of Treasury Mulia Nasution after presenting the BRR Action Plan (DIPA) on a ceremony at Baiturrahim mosque in Ulee Lheue, Banda Aceh. DIPA is a complete, real, and detail list of reconstruction projects that will be managed directly by BRR, but implemented by existing local government offices.

''The Rp 3.976 trillion fund will be managed by 101 task forces that have been approved by BRR. Next Monday (18/7) the fund will be channeled to local government office that will implement the projects,'' Kuntoro said as quoted by Detikcom. He reiterated that the fund is coming from Indonesian national budget for 2005.

The reconstruction budget that already approved by Indonesian House of Representative is totally amounted at Rp 8.4 trillion. ''Half of the remaining 2005 budget will be channeled to Indonesian ministries that already have its own plan in Aceh and Nias. But in the next fiscal year, 2006, all reconstruction budget will goes directly to BRR,'' said Kuntoro.

Of the Rp 8.4 trillion fund, as reported by Antara news agency, Rp 4.4 trillion is coming from grant and debt reallocation, and the remaining Rp 3.967 trillion that channeled to BRR is coming from debt moratorium.

The biggest portion of the BRR fund, Rp 1.619 trillion (40 percent) will be used to finance housing, infrastructure, and spatial planning projects. The second biggest project is institution building that received Rp 769.75 billion (19.4 percent).

The remaining fund goes to: economic and business empowerment (Rp 546.104 billion, 13.77 percent); health and education (Rp 480 billion, 12.10 percent); BRR secretariat, BRR Nias branch, as well as its financial, communication, and information activities (Rp 3.996 billion, 4.8 percent); and reconstruction planning (Rp 90.5 billion, 2.28 percent).=A9 che