Contact:
Sabine Joukes. sjoukes@worldbank.org
Sarosh Khan. sikhan@worldbank.org
Tel :(62 21) 5299-3235
Jakarta, 20 December, 2006: The Java Reconstruction Fund (JRF) today launched an ambitious project to reconstruct 21,500 permanent homes and 24,500 transitional shelters in earthquake affected Yogyakarta and Central Java, as well as the tsunami ravaged coast of Pangandarang, West Java.
Out of the initial pledge of US$76 million received by the JRF, US$66 million has now been allocated to housing. The JRF was set up soon after the earthquake at the request of the Government of Indonesia and brings together six donors (EU, Netherlands, UK, Canada, Finland and Denmark) to help victims primarily to rebuild their homes and regain their livelihoods. The Fund is administered by the World Bank.
The Community-based Settlements Rehabilitation and Reconstruction Program builds on an existing World Bank-supported Urban Poverty Program (UPP) in Yogya and Klaten which received an emergency reallocation of housing funds immediately after the May 27, 2006, earthquake. Those funds were used to build over 6,480 houses of which 1,500 have been completed and the others are nearing completion.
The total damage and losses of the Java quake and tsunami was assessed at US$3.1 billion and US$100 million respectively. The quake caused massive destruction to housing – some 300,000 units need to be rebuilt or repaired, amounting to 52 percent of overall damage. The remaining 31 percent of losses were sustained in agriculture, trade and tourism.
“The people of Yogya are known for their skill and enterprise and giving them housing support will also help them regain their livelihoods, many of which are home-based. It’s the quickest way to help rebuild their lives and repair the economy,” said Andrew Steer, Country Director, World Bank Indonesia. “Many are already rebuilding their homes with what they can get. A network of UPP facilitators has been working with 500 communities in five districts since May to provide financial and technical support.”
The JRF has allocated US$6 million for 24,500 transitional shelters which will eventually be dismantled and recycled to build permanent homes. The permanent housing project is implemented by the Ministry of Public Works and the transitional homes by the International Organization for Migration and the Cooperative Housing Foundation in partnership with the World Bank.
The Deputy in charge of Yogya Reconstruction at the Coordinating Ministry of Economic Affairs, Pak Bayu Krisnamurthi said: “We are grateful to the Java Reconstruction Fund donors for working alongside the Government as partners in the reconstruction. We believe in community-based mechanism with provide strong quality control.”
“The Multi Donor Fund for Aceh and Nias proved to be an effective, efficient and transparent financing mechanism,” said the Co-Chair of the JRF and EU Ambassador, Jean Breteche. “Donors decided to pool funds again to facilitate a coordinated effort in the reconstruction of Yogya, Central and West Java.”
The Fund will also provide infrastructure support for 156 affected villages.
For more information on the World Bank’s reconstruction program in Yogyakarta visit: www.worldbank.org/id
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