Denmark to finance local fish breeding project

JAKARTA (JP): The Danish government has agreed to provide Indonesia with a US$2.7 million soft loan to finance a fish breeding project in Gondol, Bali.

The agreement was signed in Jakarta on Friday by Danish Ambassador to Indonesia Michael Sternberg and Director General of State Budget at the Ministry of Finance A. Anshari Ritonga.

Under the agreement the Danish government will also reschedule its debt owed by Indonesia in compliance with the memorandum of understanding on debt rescheduling signed in Paris between Indonesia and member states of the Paris Club in September last year.

Outstanding Danish government loans and commercial credits to Indonesia total approximately 150 million Danish krone, the embassy said.

The Danish government agreed to reschedule all repayments of the principal until March 31, 2002 from the original due date of April 1, 2000, worth about 20 million Danish krone, as well as commercial credits for US$20 million and 12.6 million Deutsche- marks, the embassy said in a statement.

"These arrangements are a very clear indication of Denmark's continued strong support of Indonesia's young democracy and the political and economic reforms that are underway," Sternberg said in the statement.

Sternberg said that the $2.7 million in financial assistance was the first soft loan provided by the Danish government to Indonesia.

He said that the loan has a grant element of 50 percent.

The project is an intensive, high-technology plant for breeding high value marine fish species, which would be run by the Central Research Institute for Sea Exploration and Fisheries (CRISEF) under the Ministry of Maritime Affairs and Fisheries.

"Even though it is a relatively small project ... with a grant element of around 50 percent it is expected to have a very significant impact on the future of Indonesian aquaculture and the preservation of coral reefs," Sternberg explained. (tnt)