Prime Minister John Howard announced Australias largest ever one off donation, of $1billion. The money will go to Indonesia, to help rebuild its devastated coast.
The announcement came ahead of an International conference in Jakarta to discuss relief efforts. The aid will be given over a 5 year period in the form of grants and long-term interest free loans to the Indonesian government
Prime Minister Howard said it was a historic moment in Australia-Indonesia relations. The two countries will work together in rebuilding the devastated Aceh province, which was hardest hit.