USAID Announces Development Partnership with Chevron in Indonesia

(2005-05-27)

WASHINGTON, DC, May 26, 2005 -- The United States Agency for International Development (USAID) and Chevron Corporation today announced a $10 million public-private alliance to support immediate and long-term vocational training needs in Indonesia. The alliance supports the Government of Indonesia’s plan to assist in restoring people’s livelihoods following the devastating December 2004 tsunami.

USAID Administrator Andrew S. Natsios and John Watson, President of Chevron International Exploration and Production, announced the Vocational Training Alliance for Aceh at a signing ceremony today at the US Chamber of Commerce in Washington, DC. The partnership will develop training programs to build local capacity and provide the people of Aceh with skills needed to obtain jobs. Indonesia’s Aceh province was greatly affected by the tsunami.

The partnership calls for Chevron and USAID to commit up to $5 million each over the next two years for a total of $10 million. The program will increase the involvement of Acehnese in the reconstruction process and generate economic impact in local communities. Short-term training in construction skills, teacher training and community development at a Government of Indonesia and Chevron vocational training facility in nearby Riau province will be provided as well as longer-term education programs focused on computers, electronics, and telecommunication. Based on a feasibility study, the alliance may support the rehabilitation or construction of a vocational training center to serve Aceh province in the future.

"This partnership reconfirms the American people’s commitment to helping those whose lives were disrupted by the tsunami," Administrator Natsios said. "The alliance with Chevron will help ensure long-term economic opportunity for tsunami victims."

Mr. Watson added, "This demonstrates Chevron’s continued long term commitment to tsunami reconstruction, leveraging our collective strengths and capabilities for the benefit of Indonesia." Chevron Corporation has had a presence in Indonesia since 1924 when it began exploration activities, through a wholly owned subsidiary, P.T. Caltex Pacific Indonesia. The corporation has contributed to developing human capacity through education, training and local business development in Riau Province.

News of the alliance was welcomed by Mr. Kuntoro Mangkusubroto, the Chairman of the Agency for Rehabilitation and Reconstruction in Aceh and Nias. He said, "I enthusiastically endorse this alliance between Chevron and USAID to provide capacity building support for the reconstruction and rehabilitation of the Aceh region. Their initiative meets many of the needs that have been identified in the Government's blue print for the reconstruction of Aceh and Nias. I applaud both Chevron and USAID for their commitment to provide some immediate vocational training at the 'Politeknik Caltex Riau' in Pekanbaru, Riau Province, which will help Acehnese participate in the reconstruction process. "

This is the second Chevron and USAID partnership; in 2002, USAID and Chevron Corporation formed a public-private alliance to revitalize the peace-time economy of Angola. Each committed $10 million for projects to assist refugees and decommissioned soldiers returning home after a 27-year civil war. USAID, through its Global Development Alliance business model, harnesses the expertise and resources of private corporations, foundations and other non-governmental actors in support of international development.

The Vocational Training Alliance for Aceh complements the broader USAID $157 million education initiative for Indonesia to improve the quality of basic education throughout the country. Education is a major component of the overall USAID assistance strategy for Indonesia which also aims to strengthen decentralized and democratic governance, foster economic growth, and improve the delivery of critical services such as health, water, and the environment. As part of the U.S. government’s immediate tsunami assistance, USAID has provided over $53.3 million in emergency assistance and other support for affected communities in Indonesia.