Japan, Australia to extend food aid to Indonesia

JAKARTA (JP): Japan is to extend 400,000 metric tons of rice aid to Indonesia over the next few months, while Australia will send another 11,000 tons of wheat by the end of this year, reports said on Thursday.

A Japanese foreign ministry official was quoted by AFP as saying in Tokyo that half of the rice would be sent from Japan and would later be gradually returned by Indonesia.

Indonesia will import the rest of the rice from other countries using yen loans provided by Japan, he added.

"The rice aid is in response to a request from Indonesian President (B.J.) Habibie in August," the official said.

Japan promised 150 billion yen (US$ 1.3 billion) in loans to Jakarta in July.

Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita arrived in Tokyo on Thursday on a snap visit to discuss a US$30 billion Japanese aid program for Southeast Asia and South Korea.

He was scheduled to meet with Prime Minister Keizo Obuchi and to hold talks with foreign minister Masahiko Komura on Friday.

Meanwhile, Antara reported that Australia would send 11,000 metric tons of wheat worth A$7 million to Indonesia. The food aid was organized as emergency assistance under the World Food Program and is expected to arrive before the end of December 1998.

Australian Foreign Minister Alexander Downer said in Canberra that Indonesia had been informed of the aid through State Minister of Food and Horticulture A.M. Saefuddin.

The program, to be organized by AusAID, will seek to help the poorest and most malnourished contingent population, Downer said.

"As an all-weather friend, Australia remains committed to helping Indonesia overcome these difficult times," he said.

Earlier this year Australia sent 45,000 metric tons of wheat. The new aid brings total assistance provided to Indonesia by Australia to A$60 million, according to the news agency.

Meanwhile, Saefuddin said in Melbourne on Tuesday that Indonesia's food supply is expected to return to normal by the year 2002.

"It could be sooner if the economic recovery, which is already beginning, runs speedily and smoothly," Saefuddin, who was on a three-day visit to Australia, said.

Saefuddin arrived in Melbourne on Monday to discuss an Australian food aid program. He also met with the Indonesia- Australia Business Council on Tuesday.

On Thursday, the Indonesian and Victoria State governments signed an agreement to cooperate in the food industry and work to develop research and human resources in the field of food technology.

"It is a follow-up on a memorandum of understanding signed between the Indonesian government and the State Government of Victoria in June 1996 by then food minister Ibrahim Hasan and Victoria State Food Minister Patrick McNamara," Saefuddin said.

The aim of the agreement was to speed up development of Indonesia's food industry, encourage business and trade activities in food products and encourage human resource development in food technology and food control, said the minister.

"Therefore I have come to Australia accompanied by 29 businesspeople from the food industry and the food retail trade," Saefuddin said.

Among notable business people in the delegation are Eva R. Hutapea, president director of PT Indofood Sukses Makmur, Franky Welirang, director of PT Bogasari, Steve Sondakh, director of PT Hero Supermarket and Adi Goenawan, director of PT Charoen Pokphan. (byg)