Ginandjar asks for more rice aid from Japan

JAKARTA (JP): Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita asked the Japanese government yesterday for 400,000 metric tons of additional rice aid, saying that Indonesia's rice production might be lower than forecast.

"This year's rice production forecast is probably a little bit too optimistic. The country's real production will probably be much less than the forecast," Ginandjar said in a speech while receiving a shipment of 500,000 tons of rice from Japan in a soft loan.

Ginandjar said the State Logistics Agency (Bulog) had faced difficulties in procuring rice during the harvest season this year.

It is an indication that we need more supplies and stocks, he said.

"We will probably need to increase imports. I would like to use this opportunity... if there is any possibility, to ask the Japanese government for this assistance," Ginandjar said.

Japanese Ambassador to Indonesia Takao Kawakami said that Japan's rice aid to Indonesia was the largest ever.

"For Japan, this assistance is the biggest aid in history... as Japan is also currently facing economic difficulties. However, Japan will continue assistance as Indonesia is a very important friend to Japan," Kawakami said.

Ginandjar pledged that the rice aid from Japan would be delivered to those most severely hit by the economic crisis.

"We will assure you that the rice will reach the right people, the needy... the people severely impacted by the economic crisis," Ginandjar said.

The Japanese government has pledged to send 600,000 tons of rice to Indonesia, 500,000 tons of which would be delivered through the government in soft loans, 40,000 tons through international institutions and 10,000 tons as a grant would be delivered through non-governmental organizations. The remaining 50,000 tons is being prepared as a grant.

The Central Bureau of Statistics has predicted that Indonesia's unhusked rice output is expected to drop 6.25 percent to 46.29 million metric tons this year, down from 49.38 million tons in 1996, due to the planting season being delayed by the drought.

The government estimated in February that this year's rice production would drop 3.80 percent.

Indonesia is expected to import 3.1 million tons of rice from Thailand, Japan, India, China, Vietnam and Pakistan to make up for shortages in domestic production this year.

Earlier yesterday, Dow Jones newswires reported that Taiwan was in the process of reviewing a 200,000-ton rice deal with Indonesia, along with other bilateral programs, in view of anti- Chinese incidents that occurred during the May riots in Indonesia.

Indonesia plans to import up to 200,000 tons of rice from Taiwan in the form of a 10-year soft loan. The shipment is expected in September. (gis)