A$64 million dollars for Indonesian Infrastructure

Infrastructure projects in Indonesia are set to receive a vital boost as work gets underway through a A$64 million dollar Australian funded initiative to assist Indonesia to improve essential services and promote economic growth.

Launching the Indonesia Infrastructure Initiative with the Deputy Minister of Bappenas, Dr Dedy S. Priatna, the Australian Ambassador to Indonesia, Bill Farmer, said “Australia will provide funding for technical assistance, capacity building and small investment grants for proposals submitted by our Indonesian counterparts. This will support infrastructure programs and ultimately help deliver better services to the public”.

The program will initially focus on areas including water supply, sanitation, telecommunications, urban development, transport, and energy.

The three year Initiative is designed to reduce policy and regulatory hurdles, increase project management expertise and encourage private investment in infrastructure.

“A key to the prosperity of both our countries is to improve roads, rails, port infrastructure, electricity networks, water supplies and, increasingly, communications networks. In the long term, these underpin our productivity, competitiveness, exports and prosperity,” said Mr Farmer. “We want to help the Indonesian Government deliver improved services in infrastructure and help foster economic growth”.

Australia is funding the program under the five year Australia-Indonesia Partnership which will provide up to A$2.5 billion dollars to help Indonesia tackle poverty and meet its social and economic development goals.

The Initiative will be managed by a board co-chaired by Australia’s overseas aid agency, AusAID and Indonesia’s national development planning agency, Bappenas.

Media Enquiries:
Natasha Simpson, AusAID Public Affairs tel. (021) 2550 5609 mob. 0811 187 2365