Thu, 19 Mar 1998

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)