Donor countries from the Consultative Group on Indonesia (CGI) Wednesday committed to disburse 5.4 billion U.S. dollars for Indonesia in 2006, said Coordinating Minister for the Economy Boediono.

"The total we got from the meeting today is 5.4 billion U.S. dollars. The loan comprises 3.9 billion U.S. dollars to be disbursed through the country's state budget and 1.5 billion U.S. dollars in form of grant to be directly channeled to the community, " said Boediono at a press conference held after the 15th annual meeting of CGI was concluded here.

On the same occasion, Indonesian Finance Minister Sri Mulyani said that there are hikes of needs for financing the rehabilitation in quake-hit Yogyakarta and Central Java provinces, education, infrastructure and subsidies for electricity.

The government plans to provide up to 30 million rupiahs (about 3,000 U.S. dollars) in cash to each family whose house was destroyed by the quake. The aid could vary according to the seriousness of the house's damage.

The earthquake on May 27 injured over 40,000 people. More than 300,000 houses and school collapsed.

Meanwhile, Mulyani said that the government needed about 16.7 to 17 billion U.S. dollars' fund this year to pay the state budget deficit which would reach between 1.3 to 1.5 percent of the GDP and to pay 12.3 billion U.S. dollars of foreign loan.

The government would meet the demand by issuing bonds and utilizing other possible sources, she added.

The CGI is a country-level group of creditor countries and multilateral agencies that hold annual meetings to find agreement on development aid in the forms of loans and grants for Indonesia following an assessment of the country's economic progress and financing needs.

The largest contributors to the CGI are Japan, the Asian Development Bank (ADB), the World Bank and the International Monetary Fund.

Source: Xinhua