Finland is to grant eight million euros to the rebuilding fund of Aceh Province in Indonesia.
The region suffered significant damage in the tsunami disaster last December, and it has been the focus of a long-running conflict between the Indonesian government and local guerillas over regional autonomy.
The Finnish Cabinet Finance Committee agreed the rebuilding grant for 2005-2007 yesterday.
Finland will contribute the aid to the multi-donor trust fund, which was founded in May and is governed by The World Bank and the Indonesian Government.
The newly founded grant pool will operate till 2010. Thus far the donor fund is expected to receive 500 million USD from grant resources.
A peace treaty brokered in Helsinki last month by the former Finnish President Martti Ahtisaari brought a formal end to the fighting in the province. The Indonesian government and the Free Aceh Movement (GAM) promised to end hostilities. Under the agreement, GAM fighters are to give up their weapons, and the number of Indonesian government forces is to be reduced sharply.
