The Consultative Group on Indonesia (CGI) has pledged 5.4 billion U.S. dollars in total loans and grants this year to support the government's medium-term development and reconstruction of disaster areas, reports said Thursday.

The commitment, which the country's group of major creditors made during its annual meeting with the government here on Wednesday, will consist of 3.9 billion dollars in funds to help finance the 2006 state budget, and 1.5 billion in grants to be disbursed directly to the public outside the budget, reported The Jakarta Post newspaper.

The 1.5 billion dollars grants will mostly consist of CGI's preliminary commitment for the rehabilitation and reconstruction of Yogyakarta and Central Java, which were devastated the May 27 earthquake that caused 29 trillion rupiah (3.1 billion dollars) in losses.

Coordinating Minister for Economic Affairs Boediono said the CGI's 29 members of bilateral and multilateral creditors were still finalizing their grant commitment for the quake-hit areas.

Source: Xinhua