Japan resumes RI's loan program

Japan resumes RI's loan program

JAKARTA (JP): Japan has resumed its US$200 million loan
program to Indonesia to help finance agriculture infrastructure
development in a bid to ensure food security, officials at the
Ministry of Agriculture said.

They said resumption of the loans, which were suspended on
Sept. 10, indicated that Japan held confidence and faith in the
new government of President Abdurrahman Wahid.

Director general for food crops and horticulture Chairil
Rasahaan said on Monday that part of the loans was available
since Dec. 10 after the government fixed the planning and
implementation of the project.

"We almost lost the momentum for the harvest period in
January," he said. "If the suspension continued, it would have
definitely affected our rice stocks."

He said the loans would be stretched through October next year
and were aimed at increasing the production of quick yielding
commodities such as rice, corn and soybeans.

The project is expected to help increase paddy, soybean and
corn harvests by 2.15 million tons, 390,000 tons and 288,000 tons
per annum respectively, he said.

Of the total loans, $75 million would be used to purchase
agricultural machinery, while the remainder will finance
infrastructure rehabilitation and the setting up of training and
information centers at the regency level.

The ministry's secretary-general, Syarifuddin Karama, said
the fund would be disbursed to 194 regencies in 25 provinces.

He said local governments would have full authority to execute
the project, while the central government would monitor its
implementation.

The ministry's inspector general, Suparman, said his office
would ensure that the funds would reach the targets through
auditing from the outset of the disbursement.

"We will perform audits at every phase of the project
implementation to ensure there is no wrongdoing or leakage of
funds."

Chairil said his office was optimistic that Indonesia would
regain its self-sufficiency in rice production by 2001, with rice
output of 54.3 million tons of unhusked rice, or equal to 34.3
tons of husked rice, with per capita consumption of 134.4
kilograms.

The office projected domestic rice production would reach 53.3
million tons of unhusked rice next year, up from the expected 52
million tons this year.

Chairil said the Ministry of Industry and Trade and the State
Logistics Agency should anticipate the rising domestic production
of rice by reducing imports and imposing import duties for the
national staple food. (06)