Jakarta, 2 March 2006

1. In support of the reintegration process stipulated in the Memorandum of Understanding of August 15th, 2005, the Japanese Government decided to contribute JPY One billion (approximately USD 8.6 million) grant aid to IOM Reintegration Program. This program is designed to provide vocational training and income generating services for former combatants and ex-prisoners, and it will be implemented soon with the immediate disbursement of Japanese grant aid.

The Japanese Government has continuously supported the Indonesian Government’s effort to achieve peace and stability in Aceh, such as hosting Tokyo Conference twice, in December 2002 and in May 2003, in connection with COHA.

With this new commitment to the IOM program, Japan’s contribution for peace process in Aceh amounts to approximately USD 12 million since the signing of the MOU on August 15th,2005[See below]. Preparation is underway for further assistance.

2. On March 2nd,2006, the exchange of diplomatic notes on Japanese contribution to IOM Reintegration Program between H.E. Mr. Yutaka Iimura, Ambassador of Japan, and Mr. J. Stephan Cook, Chief of Mission, International Organization of Migration (IOM) was witnessed by H.E. Mr.Mohammad Jusuf Kalla, Vice President of the Republic of Indonesia.

(Note)

Japan’s contribution for peace process in Aceh (In total USD 12 million)

1. Support to Individuals (total USD 11.07 million)

(1) Reintegration Program for former combatants and ex-prisoners (Contribution to IOM, USD8.6 million)

(2) Rehabilitation of Vocational Training Centers in Aceh (Grant, USD 2.48 million)

(3) Training for micro entrepreneurship in conflict-affected areas (including former combatants and ex-prisoners) (JICA technical cooperation, USD 40 thousand)

2. Support to conflict affected communities (total USD 640 thousand)

Community-based quick impact projects in Pidie District, one of the most conflict-affected areas in Aceh (Japanese Embassy and JICA community support program).

3. Support for Governance in Aceh aimed at mid to long term peace consolidation (total USD 330 thousand)

(1) Electoral Assistance for Local Direct Elections (Japanese Embassy community support program and JICA technical cooperation, USD 140 thousand)

- Training for Independent Election Commission (KIP) staffs and funding for the production of election publication materials such as brochures and leaflets.

(2) Capacity-building for local officials (JICA technical cooperation, USD 140 thousand)

- Training for Local Officials on policy-making, after enactment of Aceh Governing Law.

(3) Capacity-building for legal institutions. (JICA technical cooperation, USD 50 thousand)

- Training for Syariah Court judges on Alternative Dispute Resolution (ADR).

The above amount of USD 12 million is mostly on top of last year’s tsunami emergency and reconstruction grant aid which has amounted to USD 294 million, i.e. bilaterally USD 154 million (JICA included) and USD 140 million through multilateral organizations.