Japan to loan rice to RI

Japan to loan rice to RI

TOKYO (DPA): Japan agreed Friday to loan 200,000 tons of rice to Indonesia, in addition to previous commitments, to help Jakarta alleviate a severe food shortage, Japan's Foreign Ministry said.

"We hope the additional food aid will lead to social stability by easing the food shortage," the ministry said.

Japan decided in June on rice aid totaling 550,000 tons - 500,000 tons in rice loans and 50,000 tons in grants. But Indonesia still faces a rice shortage of 1.43 million tons, the ministry said.

According to a joint report released in October by the UN Food and Agriculture Organization and the World Food Program, poor harvest conditions will push Indonesia's rice shortage to 5.14 million tons by March 1999.