Ginandjar clarifies rice distribution

Ginandjar clarifies rice distribution

JAKARTA (JP): Responding to Japan's concern over reports of
problems in the distribution of its rice loan, Coordinating
Minister for Economy, Finance and Industry Ginandjar Kartasasmita
invited on Thursday any parties, including journalists and
nongovernmental organizations (NGOs), to directly check the
distribution of the rice.

"I have told the Japanese government to send their
investigators here," Ginandjar said after accompanying President
B.J. Habibie to a ceremony installing the executive board of the
National Scout Movement at the State Palace.

Ginandjar's stance, however, appeared to differ from that of
Minister of Trade and Industry Rahardi Ramelan, who blamed
Japanese NGOs for what he believed was an unnecessary uproar over
the distribution of the rice.

Ginandjar will leave for Japan on Sunday for a three-day visit
to meet with Japanese Prime Minister Keizo Obuchi and other
economic leaders. The controversy over the distribution of
Japan's loan of 500,000 metric tons of rice is expected to become
one of the main topic of the meetings' agenda, although the
primary reason behind the visit is to discuss more loans for
Indonesia.

A senior diplomat at the Japanese Embassy here, Norio Hattori,
met with Rahardi, who is also head of the State Logistics Agency
(Bulog), on Wednesday. Hattori conveyed his government's concern
over negative reports in the Japanese media about the rice
distribution.

Hattori told Rahardi that Tokyo needed evidence that the rice,
bought from Japan under a soft loan agreement, had been promptly
distributed to the poor as previously agreed by the two
governments.

"It's only the Japanese press and NGOs who have been making
noise about the rice aid," Rahardi said on Wednesday.

Rahardi said he met with Hattori, whom he identified as
Japanese vice ambassador, and claimed that the diplomat
understood his explanation of the distribution of the loaned
rice.

Rahardi confirmed that Bulog replaced the loaned rice intended
for the poor with lower quality rice, saying that the Japanese
rice's quality was too excellent and Japan had no right to
dictate to the Indonesian government the terms of its
distribution. He pointed out that the rice was a loan and not a
grant.

The rice for the poor is sold at the subsidized price of Rp
1,000 per kilogram, while the price of the Japanese rice is at
least Rp 2,700 per kg.

"He (Hattori) admitted that the distribution system
implemented here was smooth," Rahardi said on Wednesday.

Japan has sent 500,000 metric tons of rice as of December, and
another 100,000 metric tons are expected to arrive soon.

The World Food Program is to distribute 40,000 metric tons of
the rice, while Indonesian NGOs have also been asked to take part
in the delivery of the rice. The NGOs, however, have complained
that they were asked to finance the transportation of the rice
from Bulog's depots to its final destinations.

The already received 500,000 metric tons of rice was grown in
Japan, while the expected 100,000 metric tons was bought on the
international market. The total value of the rice is about 11
billion yen.

Japanese Foreign Minister Masahiko Komura said in October that
his country was ready to supply another 400,000 metric tons if
Indonesia was faced with further rice shortages.

Major Japanese newspapers, such as Yomiuri Shimbun and Asahi
Shimbun, reported alleged irregularities in the rice
distribution. The two newspapers have foreign correspondents
based here.

A Japanese source said Indonesia should be more sensitive of
Japanese taxpayers' concerns and their growing criticisms over
how the loaned rice was distributed.

"Our taxpayers have the right to be assured that their taxes
are properly used," the source said on Thursday.

The government has calculated up to US$3 billion in loans from
Japan into its 1999/2000 state budget. The loans are expected to
come from the $30 billion Miyazawa Plan, designed to help Asian
countries recover from the region-wide economic crisis.

"We will be in a very difficult position if our taxpayers find
that our loan has been misused and not effectively spent," said
the source. (prb)