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)