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Jakarta, January 24, 2007
Japan's Grant Aid to the Republic of Indonesia (Project for Water Supply in Gunungkidul Regency of Yogyakarta Special Territory)

1. The Government of Japan has decided to extend grant aid to the Government of the Republic of Indonesia for “Project for Water Supply in Gunungkidul Regency of Yogyakarta Special Territory”, total amount of up to￥525 million (approximately US$ 4.35 million or Rp 39.45 billion). The diplomatic notes were signed and exchanged between Mr. Shin Ebihara, Ambassador of Japan to the Republic of Indonesia, and Mr. Primo Alui Joelianto, Director-General for Asia Pacific and Africa Affairs, Department of Foreign Affairs of the Republic of Indonesia, in Jakarta on January 24, 2007.

2. Summary of the project;
    The National Medium-term Development Plan aims refer to “improving access of the people to quality health service” as one of the important challenges of Indonesia and aims at providing facilities for clean water and basic sanitation under the program for healthy environment.

    Gunungkidul Regency, which is located in the south part of Yogjakarta Special Territory suffers severely from water shortage during the dry season. Only 30% of the residents in the area have access to safe water. One out of six people suffer from water-borne diseases, such as, diarrhea. Improving sanitation, especially developing the water supply system is among the most important challenges. Especially, during the dry season, many residents are obliged to depend on buying expensive water or to utilize unsanitary water from rivers or shallow wells because, in order to save water, supply is suspended for 8 days out of 10.

    Under such a situation, the Government of the Republic of Indonesia requested the grant aid to develop the water supply system in the southwest part in the Gunungkidul Regency, to support the operation of the water supply system, and to build capacity for maintenance and management.
    Through this project, it is expected that about 93,800 residents will benefit from the stable supply of safe water, and consequently, leading to a reduction in cases of water-borne diseases and implementation in the living environment. In addition, the burden of carrying water is expected to be reduced..

3. The Government of Japan, as the largest donor country to Indonesia, will continue to assist Indonesia’s development efforts.