USTDA GRANTS SUPPORT TECHNICAL ASSISTANCE RELATED TO THREE AVIATION PROJECTS IN INDONESIA

FOR IMMEDIATE RELEASE

BALI, INDONESIA (July 26, 2004) – Earlier today, the U.S. Trade and Development Agency (USTDA) awarded three technical assistance grants totaling $1,187,500 for aviation sector development projects in Indonesia.  The grants, awarded to Indonesia’s Directorate General of Air Communications (DGAC), were conferred during a signing ceremony at the 4^th Asia-Pacific Economic Cooperation (APEC) Transportation Ministerial Meeting.  USTDA Director Thelma J. Askey and Director General of Air Communications Cucuk Suryo Suprojo signed the grant agreements on behalf of the U.S. and Indonesian Governments, respectively.  U.S. Secretary of Transportation Norman Y. Mineta and Ad Interim Minister of Communications Dr. Ir. Soenarno signed as witnesses to the grant agreements.

“These grants reflect the U.S. Government’s overall commitment to the APEC objective of advancing regional economic growth and prosperity,” emphasized Director Askey.  “In particular, the technical assistance activities supported by these grants will facilitate Indonesia’s economic development by improving the country’s transportation infrastructure and, in particular, its aviation sector.”

The first grant, in the amount of $443,500, will fund technical assistance to assess safety and security procedures at Indonesia’s airports.  This activity will evaluate current systems and procedures, identify deficiencies, and recommend a program for upgrading safety and security measures.  The assistance will focus on four airports of different capacities and apply final recommendations to comparable airports throughout Indonesia.  USTDA support for this project will advance the goals of the Asian Development Bank’s Regional Trade and Financial Security Initiative (RTFSI), which was established by APEC Leaders to strengthen anti-money laundering efforts, combat the financing of terrorism, and enhance port security in the APEC Region.

The second grant, totaling $627,000, will provide assistance for an air traffic control project on Indonesia’s Natuna Islands located in the South China Sea.  This activity will help the DGAC to identify the technical and financial requirements for resuming airspace management control over these islands.  Currently, this airspace is managed by Singapore and Malaysia. 

USTDA will provide $117,000 under the third grant awarded today to fund technical assistance that will identify and recommend regulations for airline industry use of computer reservation systems in Indonesia.  This project will help to establish market-appropriate regulations to promote competition in Indonesia’s airline industry.

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