Mr Rudy Pasik, Chairman of the Board of Dana Mitra Linkungan, Mr. Rama Boedi, Chairman of the Board of the Indonesian Society of Sanitary and Environmental Engineers, and honored guests from these organizations.

[I have been informed that Dana Mitra Linkungan celebrates its 15^th anniversary of service to the nation this week. I extend my best wishes to its members for continued success. You have had a remarkable 15 years. Congratulations.]

The signing of these memoranda of understanding between the US Agency for International Development and Dana Mitra Linkungan and the Indonesian Society of Sanitary and Environmental Engineers in an important development.

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, as many of you may know, will more than double in size this year, growing to more than $125 million. It includes programs in civic and community participation, health and family planning, food, economic reform, and environmental management.

The grant to the Indonesian Society of Sanitary and Environmental Engineers is part of a larger effort to assure clean, safe water delivery to Indonesians. USAID and US-AEP are working with the Government of Indonesia�s interministerial Water Authority Rescue team and nearly 100 water enterprises to increase water supply efficiency and improve water services. Protection of water supply not only safeguards the health of thousands of families but affects activities such as farms and fisheries that generate income and require dependable water quality.

The U.S.-Asia Environmental Partnership program grant to Dana Mitra Lingkungan addresses issues affecting Indonesia�s manufacturing sector. Part of the grant will assist small- and medium-sized manufacturers increase their efficiency and cut costs. Another part, the waste exchange program, will encourage the efficient use for waste materials by creating new products and better recycling or extraction techniques. Both parts, we hope, will help maintain jobs and reduce pollution.

In addition, let me mention that the foreign commercial service of the US Department of Commerce, in partnership with US-AEP, maintains a technology representation office in Indonesia. This office provides technology information to the manufacturing sector, maintains contacts with core industrial firms that could benefit from technical assistance on environmental matters, and encourages U.S. firms interested in trading with Indonesia. This is a further sign of our confidence in Indonesia and our desire to help speed economic recovery.

The United States is committed to helping Indonesia through this difficult period. We have already allocated $152 million to meet short-term humanitarian needs for food and medicines. We will be providing more than 500,000 tons of wheat this year. We have expanded the availability of agricultural trade credits to facilitate the purchase of food and agricultural inputs. This includes $540 million in credit guarantees and concessional loans for purchase of food, livestock and agricultural equipment and services. We are making $1.0 billion in Export-Import bank Credits available and encouraging investment through two of our agencies: the Overseas Private Investment Corporation and the Trade and Development Agency.

To get the most benefit from these assistance efforts by the United States and many other countries, the Government of Indonesia will also need to do its part to create a hospitable business climate. Desirable steps include implementing financial and real sector reforms, abolishing obstacles to international and domestic trade, equalizing opportunity, demonstrating fairness and objectivity, taking firm action against corrupt, collusive and nepotistic privileges, and ensuring the momentum towards fair and transparent systems is maintained.