Sydney – A new report from Australia's aid watchdog AID/WATCH, 'International Response to the Indian Ocean Disaster. A Donor Analysis: Focus on Australia', finds that the $1 billion tsunami aid package from Australia is not as generous as most Australians had expected.

The report launched on the eve of the Indonesia-Australia summit finds:

• The $1 billion is dedicated to all areas of Indonesia and not just the tsunami-affected areas raising concerns that the Australian public have been misled about the true intentions of the aid package.


• Half the package is in grants and half will be loans, creating a greater sovereign debt burden for Indonesia.


• Australia's contribution falls well below what Australia has signed onto to deliver via the Millennium Development Goals – At current rates Australia is under delivering to Indonesia by $500 million over the next five years, even with the $1 billion aid package.


• The areas identified in the Prime Ministers media release were the same areas Foreign Minister Downer identified as foci for Australian aid to Indonesia back in May 2004, raising further concerns about how much aid will actually get to the people so badly affected by the tsunami.
• AID/WATCH's Tim O'Connor stated, "It appears the $1 billion aid package is actually more to do with the relationship that Australia has with the Indonesian government rather than any real concern for the people of Aceh".

Even though it is approaching 3 months since the disaster has occurred, the Australian Government has not identified any areas where the Australian aid money will be utilised. The report also finds there has been very little focus on the accountability process of the Australia-Indonesia partnership and this so called 'unique approach' needs clear mechanisms for civil society input and transparency guidelines.

AID/WATCH is an independent organisation monitoring and campaigning on Australian overseas aid policies and programs. We work to ensure aid-funding reaches the right people, communities and their environments.

For more information please call: Tim O'Connor on (02) 9557 8944/ 0419 291 508

URL link to report: http://www.aidwatch.org.au
AID/WATCH: http://www.aidwatch.org.au/assets/aw00686/MR%20final%2016%2003%2005.pdf

AID/WATCH
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NSW 2043 Phone (+61) (02) 9557 8944
Fax (+61) (02) 9557 9822
Email aidwatch@aidwatch.org.au

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