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Jakarta Post

Govt, council squabble over foreign assistance

The government and the National Council on Climate Change (DNPI) are at odds over how to use foreign aid to mitigate and adapt to climate change

Adianto Simamora (The Jakarta Post)
Jakarta
Thu, January 15, 2009

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Govt, council squabble over foreign assistance

The government and the National Council on Climate Change (DNPI) are at odds over how to use foreign aid to mitigate and adapt to climate change.

The National Development Planning Board (Bappenas) said Wednesday the board and the finance ministry would establish a new climate change trust fund to pool money from donor countries.

"The trust fund will be separate from the council (DNPI), because their concern is with making policy," Bappenas director of forestry and water resource conservation Basah Hernowo told The Jakarta Post after an inter-departmental meeting.

DNPI Executive Chairman Rachmat Witoelar however contradicted Basah's statement, saying all funding for climate change management would fall under council control.

"As a national council, we will manage all activities related to climate change, including spending the donor money," said Rachmat, also State Minister for the Environment.

The minister has repeatedly said Indonesia would receive large donations from foreign countries because it is incredibly vulnerable to the potential impacts of global warming. Already a number of nations have pledged to provide grants and loans to Indonesia.

Basah said the establishment of a climate trust fund was possible because Indonesia had ratified the Paris Declaration on aid effectiveness.

"Once we have set up the climate trust fund, donors will be able to adhere to Indonesia's regulation and deposit funds in the trust," he said.

Bappenas and the finance ministry have intensively monitored climate change development.

A "yellow book", which outlines climate change projects run within Indonesia, has been issued by Bappenas to foreign countries in the hope of funding.

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