"The aid is part of efforts to settle problems in the Rakhine State," Indonesian Ambassador to Myanmar, Sebastianus Sumarsono, said here on Wednesday on the sidelines of an Indonesia-Myanmar bilateral meeting.
The financial aid was extended to the Myanmarese government around three weeks ago, he said.
He said this was the initiative of the Indonesian government in view of that elementary education in the region was still poor.
He said the schools would be completed with multi-purpose buildings for public gathering.
Besides schools he said houses are also urgently needed in the state because "they are still living in makeshift tens" after the conflicts.
He said the Myanmarese government has welcomed the aid from Indonesia.
The Indonesian Red Cross and several non-governmental organizations have also extended social aids to the people in the state.
In 2008, Indonesia also sent US$1 million to build a hospital located near the Andaman Sea.
"Aid distribution to Myanmar is not very difficult but there is also mechanism that has to be followed," he said.
Rakhine is one of the seven states in Myanmar with its population consisting of various ethnic background with the Rakhine as the majority population.
The Rakhine is one of the ethnic groups that has not been recognized by the Myanmarese government.
Indonesia and Mynamar have historical relations since before Indonesia`s independence.
He said Myanmar sent rice and ammunition including the Seulawah aircraft to help Indonesia gain independence.
"The relations between Indonesia and Myanmar have closely developed since independence," he said.(*)