Period (Date of Exchange of Notes (E/N)):
    November 5, 2003

Place:
    Nationwide

Amount Provided:
    2.5 billion yen (about US$ 22.70 million / Rp 193 billion)

Outline:
This assistance is intended to improve Indonesia's governance sector and consists of 2 programs. The first one is a financial assistance to the General Elections Commission (KPU) for the procurement of equipments (polling booths) needed for the upcoming elections in 2004. The total amount of the fund for this program is 1.25 billion yen (approximatelyUS$ 11.36 million or Rp. 96.6 billion).

[With regard to Japan's assistance for the upcoming elections, the Government of Japan is planning to provide financial and technical assistances. The assistance plan in addition to this assistance includes the grant aid for procurement of ballot boxes, dispatch of experts to the KPU, grass-roots grant aid to NGOs in the field of voter education, and dispatch of election monitors. The total amount of its assistance plan is up to about US$ 23 million. H.E. Mr. Yutaka Iimura, Ambassador of Japan to the Republic of Indonesia, and H.E. Dr. Dorodjatun Kuntjoro-Jakti, Coordinating Minister for the Economy, exchanged letters on this plan at the Coordinating Ministry for the Economy on November 3, 2003.]

The details of the plan are as follows :

1. Financial assistance to the KPU for the procurement of election-related equipments;
2. Dispatch of experts to the KPU for technical advice in such fields as training, voter education and IT technical support;
3. Financial assistance to local and international NGOs in the field of voter education;
4. Dispatch of election monitoring teams to general election and presidential election.

The other program is an assistance for Indonesia's governance sector reform. The total amount of the fund for this program is also 1.25 billion yen (approximately US$ 11.36 million or Rp. 96.6 billion). This fund is to be used initially for the import of foreign materials and the proceeds from the domestic sale of these foreign materials are to be used for projects for Indonesia's governance sector reform.