The Chinese government has extended financial assistance amounting to 2 million U.S. dollars to Indonesia to help victims of the Yogyakarta earthquake.

The assistance was presented by Chinese Ambassador to Indonesia Lan Lijun to Indonesian Coordinating Minister for People's Welfare Aburizal Bakrie here Monday.

Aburizal said China's assistance was the first foreign financial aid received by the Indonesian government.

He said the financial aid would be soon transferred to the National Disaster Mitigation Coordinating Agency.

The aid would be distributed to disaster victims in the form of cash hanouts.

"We hope with the cash they can buy food, raw materials to rebuild their houses, and other needs so that it will stimulate the local people's economic activities," he said.

Lan Lijun said, the Chinese government and people paid great attention to earthquake in Yogayakarta which caused huge casualties and material losses. Chinese President Hu Jintao had expressed his deep sympathies and solidarity in a letter to Indonesian President Susilo Bambang Yodhoyono.

Lan expressed his confidence in the Indonesian government and people in overcoming the impacts of the earthquake which killed about 5000 people.