JAKARTA, December 8, 1998 � U.S. Ambassador J. Stapleton Roy announced today that the United States-Asia Environmental Partnership (US-AEP) will step up its commitment to Indonesia�s economic recovery by contributing about US$750,000 to social safety net programs. US-AEP is an interagency program led by the United States Agency for International Development (USAID).

On behalf of US-AEP, Ambassador Roy signed memoranda of understanding with two local non-profit organizations that will carry out the programs -- Friends of the Environment Fund (Dana Mitra Lingkungan, DML) and the Indonesian Society of Sanitary and Environmental Engineers (Ikatan Ahli Tehnik Penyehatan dan Teknik Lingkungan Indonesia, IATPI).

According to the Ambassador, "These agreements are representative of our broad support for efforts to strengthen Indonesia�s social safety net and to speed economic recovery. The current USAID program will more than double in size this year, growing to more than $125 million."

US-AEP has allocated US$350,000 to the Eco-Productivity Outreach Corps and Waste Exchange Program. This two-part program aims to assist small- and medium-size industries in contributing to Indonesia�s economic recovery. Part of US-AEP�s financial commitment to this program is a US$100,000 grant to DML.

With this grant, DML will assign teams of engineers to selected industries around Jakarta, Semarang, Surabaya, and Bandung. These engineers will identify no-cost and low-cost changes to production processes that will improve efficiency. The teams will also identify waste that can be reused or converted into new products. DML will facilitate the meeting of waste processors and waste generators, such that waste disposed into the environment can be reduced, and waste processors can enter into new businesses.

Through these two activities, small- and medium-size industries are expected to reduce production costs that will allow them to stay in operation. The labor force engaged in this sector can thus be maintained, if not expanded, and the environment can be protected.

The grant to the Indonesian Society of Sanitary and Environmental Engineers (IATPI) is just part of a larger US-AEP effort to ensure the delivery of clean, safe water to millions of Indonesians. US-AEP has committed about US$400,000 to the emergency water supply efforts of the USAID-supported Water Efficiency Team (WET).

Working in concert with the interministerial PDAM (Perusahaan Daerah Air Minum) Rescue Team at PERPAMSI, the Water Efficiency Team will visit the hardest hit PDAMs and will provide technical advice on how to maintain the quality and flow of clean water at an affordable rate.

"Protection of Indonesia�s water supply not only safeguards the health of thousands of families, but also affects activities such as farms and fisheries that generate income and require dependable water quality," said U.S. Ambassador Roy.

According to Ir. Rama Boedi, Chairman of IATPI, "Up to 90 of Indonesia�s more than 300 water enterprises are in danger of terminating service due to the higher operational costs. Interruption of water supply has an impact on those at the poverty line. It intensifies poverty, increases sanitation problems and potential for epidemic diseases."

In its first phase, the Water Efficiency Team is conducting technical and administrative audits of water enterprises that most urgently need support. With a US$20,000 grant from US-AEP, IATPI sanitary and environmental engineers will help the Water Efficiency Team to audit an estimated 90 critical PDAMs.

The second phase will focus on working with targeted PDAMs to identify and implement self-help activities and other means to improvement. These PDAMs are expected to receive technical advice on how to increase their efficiency and maintain the water quality through upgraded management, re-rating, and streamlining.

# # #