"If granted to a group, the members of the group will jointly estimate the losses and also their own needs," Social Affairs Minister Bachtiar Chamsyah said in Yogyakarta, according to the Pikiran Rakyat daily.

The government has said that it would grant financial aid ranging from 10 to 30 million rupiah (110-325 dollars) per family for reconstruction, based on the extent of the damage to their homes.

Chamsyah said each community group, formed by the residents themselves, would have 20 to 30 members and be approved by village authorities.

He said the government has so far earmarked 1.5 trillion rupiah (162 million dollars) for the reconstruction scheme in Yogyakarta and Central Java provinces, where more than 139,000 homes were damaged or destroyed.

National Development Minister Paskah Suzetta said the community-based plan was aimed at preventing conflict among quake survivors over aid funds and promoting self-help efforts among the stricken population.

Suzetta said the move would also help revive the local economy, as commercial contractors would not be involved in the rebuilding process, the Media Indonesia newspaper reported.

The community groups were to be formed before June 14 when the Indonesian government meets with its largest group of Western donors, the World Bank-chaired Consultative Group on Indonesia (CGI).

"We are targeting completion for June 12 or 13 so that on June 14, we will be able to make a presentation at the CGI meeting," Suzetta said.

"We will negotiate with the states or institutions committed to help us," he added.

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