August 30, 2004
 
U. S and Indonesia Sign Historic US$468 Million 
Development Assistance Agreement

The governments of the United States of America and the Republic of Indonesia today signed an historic pair of agreements that will provide a total of US$468 million in development assistance over the next five years. This is the largest development assistance package that has ever been signed by the two countries. These agreements provide a basis for a multi-year bilateral development program and will help greatly increase the quality of human services in Indonesia. Administered primarily through the United States Agency for International Development (USAID), the programs will support local community goals in education, health, water, nutrition, and the environment.

The first of the agreements was the realization of an Educational Initiative announced by President George W. Bush when he met with Indonesian President Megawati Soekarnoputri in Bali in October 2003. Under the terms of this agreement, the U.S. will provide $157 million over a five-year period to improve the quality of basic education in both public and private schools. Under the terms of the second agreement, the U.S. will provide $236 million, along with $75 million in food assistance, over a five year period to improve the quality of basic human services delivered to Indonesians most in need. The program will target essential services related to health, water and nutrition.

The ceremony was attended by the U.S. Ambassador to Indonesia Ralph Boyce and Coordinating Minister for People’s Welfare Abdul Malik Fajar. During the ceremony, Ambassador Boyce underscored the importance of these two initiatives. “Indonesian parents crave what parents around the world want – healthy children who have access to educational; opportunities. With the signing of these agreements today, Indonesian children will have an improved chance of emerging as greater contributors to Indonesian economic and social growth as healthy, productive and educated citizens.”

Acting USAID Mission Director Jon D. Linborg commented on the importance of these agreements: “Education and health are the two keys to a nation's success. With these two historic agreements, the United States demonstrates its commitment to working with Indonesians as partners in ensuring that the next generation of Indonesians is ready and able to lead a prosperous and stable Indonesia into the future.”

These landmark agreements are part of a U.S. government economic, democratic and social development assistance program that has been assisting the people of Indonesia for more than 50 years. Currently, the U. S government working through USAID is providing approximately US$160 million to Indonesia each year for programs that support Indonesia’s democratic transition, economic growth, educational reform, and the delivery of basic human services. USAID also provides significant humanitarian and food assistance for internally displaced persons and victims of natural disasters.

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