The aid will help Lebanon rebuild shattered infrastructure, shelter the homeless and remove unexploded artillery after Israel’s 34-day bombing offensive.
Organisers of the aid conference in the Swedish capital said that the latest pledges are in addition to previous aid commitments taking the total amount to US$1.2 billion for recovery and reconstruction.
Lebanese Prime Minister Fouad Siniora told the conference the pledges show that the Lebanese people are not alone.
"I believe we have a long way to go to get the economy back on the growth track," he said, adding: "We will be up to the challenge."
"The direct damage from this last invasion to our infrastructure and to our public and private property is now running into the billions of dollars," Mr Siniora told the aid conference.
Blockade
At the end of the conference the chairman's final statement also urged Israel to heed a call from United Nations Secretary-General Koffi Annan to end its blockade of Lebanon.
Swedish Foreign Minister Jan Eliasson said the blockade "constitutes a major impediment to the early recovery process."
Mr Siniora told the representatives of almost 50 countries and a dozen organisations that any aid effort would be undermined unless Israel lifted its "humiliating" sea and air blockade on Lebanon.
Mr Siniora also urged the United Nations Security Council to take a leading role in mediating peace in the region, and called on Israel to recognize Palestinian statehood and withdraw from all Arab lands it occupies.
"If we are to have real peace and stability in the Middle East, the root causes of this war must be addressed," he said.
Displaced people
The money raised on Thursday is set to be used to provide shelter for those left homeless by the Israeli bombing, access to medical care, repair infrastructure including water and electricity supplies, and remove unexploded munitions.
According to the UN High Commissioner for Refugees, some 300,000 people are still displaced, or seven percent of the Lebanese population. About one million people had to flee their homes because of the conflict.
The aid will be used over the next few months to help the country get back on its feet. Lebanon's long-term reconstruction needs are to be addressed at a conference to be held later this year.
Indonesia to send troops
Later, Indonesia's defence minister told AFP that Israel had dropped its objections to Indonesia's participation in the expanded UN force in Lebanon, and Jakarta would send up to 1,000 troops.
"We are going to carry this out based on the (mandate) from the United Nations ... with the deployment under the UN flags. Automatically, Israel's objection does not apply," said the minister, Juwono Sudarsono.
He said "some officials" from Jakarta had been in contact with their Israeli counterparts through third parties and received clear signs that Israel had accepted Indonesia's troops, when asked if Israel had given the go-ahead.
Annan meets with Syrian president
Mr Annan met early Friday with Syrian President Bashar al-Assad to discuss the truce in Lebanon and charges that Damascus is still funneling arms to the militant group Hezbollah.
The secretary-general met with Foreign Minister Walid Muallem on his arrival but made no comment following the talks.
"During the meeting, the need to maintain the ceasefire, the withdrawal of Israeli troops from southern Lebanon and the lifting of Israel's air and naval blockade on Lebanon were affirmed," the official SANA news agency said.
Mr Annan later said president Assad had pledged to help implement the UN resolution that halted 34 days of fighting between Israel and Hezbollah.
"I had a long and constructive discussion with the president on UN Resolution 1701 and its implementation," Mr Annan said.
He said the Syrian leader had assured him Damascus would cooperate with efforts to cement a truce between Israel and Hezbollah by stemming alleged gun running across the Syrian border to the guerrilla force that had controlled much of southern Lebanon.
Unnamed UN officials told the New York Times that Mr Annan would also ask the Syrian leader to establish diplomatic relations with Lebanon and settle a long-standing border dispute with its neighbour which could include the disputed Shebaa Farms district.
EU commissioner calls for talks
Meanwhile European External Relations Commissioner Benita Ferrero-Waldner has called for head-to-head talks between Israeli Prime Minister Ehud Olmert and Palestinian leader Mahmud Abbas.
Speaking before an informal meeting of EU foreign ministers in Finland, she said talks between the two leaders could reduce tensions in the Middle East, where Israel has led an offensive against Palestinian militants and Hezbollah.
"If we want to take an initiative as the European Union we could put that on the agenda because I think the military conflict has shown that no party really has won," she said.
Militants fire rockets at Israel
Palestinian militants fired homemade rockets into Israel today, defying the latest calls by Palestinian President Mahmoud Abbas to halt the attacks.
The Israeli army said two or three rockets fell in the Negev desert in southern Israel, after five hit Israeli territory yesterday. No injuries were reported either day.
Israel demands proof of life
Israel has demanded proof that its two soldiers abducted by the Lebanese Shi'ite Hezbollah movement are alive before entering into indirect talks over a possible prisoner swap, the Yediot Ahronot daily has reported.
A condition for negotiations on an exchange of prisoners was that the two soldiers first be handed over to the Lebanese government, the daily said, quoting Israeli government sources.
Israel only wanted to negotiate with the Lebanese government so that if a deal were reached, it would not appear as a victory for Hezbollah, the daily said.
An Israeli official secretly visited Germany earlier this week to discuss the issue, the report said.
The German Foreign Ministry confirmed late yesterday that Ernst Uhrlau, the head of Germany's BND foreign intelligence service left for Beirut to start talks on the release of the two soldiers.
Bomb site maps given to UN
The Israeli army said Friday it had provided UN peacekeepers with maps detailing where bombs were dropped in south Lebanon and where unexploded ordnance is believed to remain.
The London-based human rights organisation Amnesty International on Thursday demanded that Israel provide maps showing where it had dropped cluster bombs in Lebanon, as part of efforts to prevent more civilian deaths.
Israel's army spokesman said the maps dealt only with sites in south
Lebanon, where additional foreign troops are being deployed to bolster the UN peacekeeping mission already in place.