MOST AUST. TSUNAMI AID NOT REACHING ACEH

Most Australian Government tsunami aid not reaching Aceh, World Bank says

The World Bank says that only a small amount of the Australian Government's official aid for Aceh in the wake of the tsunami is actually going to the people of Aceh.

Joe Leitman, the World Bank's manager of a multi-donor trust fund for Aceh and Northern Sumatra, says the Australian Government has decided instead to fund education projects across Indonesia.

Mr Leitman says half of Australia's billion dollar donation was made up of loans, which the Indonesian Government does not specifically need for Aceh because of the amount of grant money available.

"The remainder will go to pursue broader strategic interests of the Indonesian and Australian governments throughout Indonesia," he said.

"So it's really maybe an eighth of the initial pledge that will actually go to the people of Aceh."