IFAD signs loan to help develop cashew plantation
IFAD signs loan to help develop cashew plantation
JAKARTA (JP): The government and the Rome-based International
Fund for Agricultural Development (IFAD) signed a loan agreement
yesterday providing US$26.01 million in aid to help finance
cashew plantations for small landholders in eastern provinces.
The agreement was signed here by IFAD president Fawzi al-
Sultan and Director General for Budgetary Affairs Darsjah.
Jeremy G.L. Wall, IFAD's project controller for the Asia
division, told reporters that the fund, the eighth aid package
given by the organization to develop such projects in the
country, will mature in 20 years, including a five-year grace
period, and carry four percent interest per annum.
He said the government will contribute $12.96 million and the
United Nations Development Program an additional $0.99 million
for the project, which will cost $43.16 million.
"We expect that the project, which will introduce cashew
planting in ergonomically suitable areas, will help increase
incomes as well as improve the nutritional status of some 52,000
poor farm families," he said.
A Ministry of Agriculture report said that the project will
include the development of small cashew plantations in four
regencies in East Nusa Tenggara, five regencies in West Nusa
Tenggara and one regency in Maluku.
"In addition to the plantations, IFAD will provide technical
assistance to help improve food crop production," Wall said.
He expects the project to double Indonesia's current cashew
production to some 35,000 tons a year, of which 70 percent will
be exported.
Infrastructure
Suharyo Husen, head of the bureau for international affairs of
the Ministry of Agriculture, said that besides technical
assistance for 5,525 farmers on 506 farms, the funds will also be
used to develop infrastructures, including water supply, well-
digging activities and inter-town roads.
"We also expect to set up several centers for agricultural
studies in East and West Nusa Tenggara," he added.
Al-Sultan said that IFAD is now negotiating with the
Indonesian government on new funds for livestock projects and the
piping system in Sulawesi and Ambon.
Wall told The Jakarta Post that IFAD will provide $25 million
to $50 million for the two projects.
IFAD, which is one of the members of the Consultative Group
for Indonesia chaired by the World Bank, has thus far financed
eight smallholder and transmigration resettlement projects in the
country with total aid of $177 million. (fhp)