Indonesian Political, Business & Finance News

Labor-intensive programs prioritized

| Source: JP

Labor-intensive programs prioritized

JAKARTA (JP): New Minister of Public Works Rahmadi Bambang
Sumadhijo said yesterday his office would focus on labor-
intensive projects to help ease the country's unemployment
problem.

Rahmadi said the labor-intensive program would include road
maintenance and irrigation development projects.

He said the projects would employ laborers who have lost their
jobs due to the economic crisis, which began last July. Many of
the country's companies have been forced to halt their
activities, leaving hundreds of thousands of workers newly
unemployed.

"The ministry has allocated a budget of more than Rp 1
trillion (US$100 million) for the labor-intensive program
covering fiscal year 1998/1999," Rahmadi said after a ceremony in
which outgoing minister Radinal Moochtar handed him the
ministry's reins.

Rahmadi said his office would also focus on facilitating the
smooth distribution of basic public necessities, especially rice.

Indonesia, which became self-sufficient in rice several years
ago, will import millions of tons of rice this year from several
countries across the region due to domestic supply shortages.

The country's rice output has been decreased due to a long El
Nio-induced drought.

Increased rice prices over the past few months has prompted
some people to loot shops in several areas due to a lack of cash.

Several countries have sent or pledged food aid to help
Indonesia cope with the food crisis.

Rahmadi said his ministry would coordinate with local regents
to map out locations in need of infrastructure rehabilitation as
well as areas with laid-off workers.

Rahmadi, who earned a doctorate degree from the University of
Maryland in the United States, previously held the post of
director general of human settlement in the ministry. (jsk)

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