Oxfam accuses world leaders of indifference on RI

Oxfam accuses world leaders of indifference on RI

WASHINGTON (AFP): The international aid agency Oxfam has warned that Indonesia, struggling with debt and drought, faces a four-fold increase in poverty this year and accused world leaders of indifference.

The agency based its dire prediction on "the savage effects of the economic crisis, which has triggered rising unemployment, soaring prices and food shortages".

A statement here charged that Asian and European political leaders planning to meet in London from April 2 to April 4 had done "too little to protect Indonesia's poor people from the impact of the economic crisis".

It said the failure of this year's harvest, in response to a prolonged drought, would force Indonesia to import eight million tons of rice -- a burden that will cost US$5 billion.

Oxfam reported that in West Timor, 75 percent of the families are down to one meal a day, which is frequently of putak, the bark of a tree normally used as cattle feed.

According to the latest official data, in 1996 the number of Indonesian poor was 22.6 million or 11.3 percent of the population.

The agency appealed to the International Monetary Fund, leading industrialized nations and the Indonesian government to take immediate measures, including the provision of funding for emergency food aid and public works projects in the poorest districts.

It also recommended that claims of foreign commercial banks be rescheduled and where necessary reduced.

The United States announced Tuesday that it was providing $56 million in food and medical assistance to Indonesia.

In addition, the World Bank has called an international meeting of Indonesian creditors on April 1 to discuss additional measures.

From Tokyo, Antara reported that Japan would grant 3 billion yen ($23 million) in humanitarian aid to Indonesia to fulfill the promise made by Japanese Prime Minister Ryutaro Hashimoto during his visit to Jakarta last March 15.

The aid will come in the form of food, milk and medical supplies, the Japanese Foreign Ministry's director general for press and public information, Sadaaki Numata, announced yesterday.

This is Japan's second aid package to Indonesia this month after the 1.02 billion yen it granted on March 6 to help the country purchase medical supplies.

Japan has also extended emergency aid to Indonesia in the form of medical supplies and equipment worth more than 1 billion yen.

Numata said the Japanese government had been following the monetary crisis in Indonesia which had caused the rupiah to plummet against the U.S. dollar, thus raising the prices of various commodities including chemical products and other raw materials for drugs, milk and other basic needs.

The situation had prompted the Japanese government to grant the additional 3 billion yen, he said.

Numata said the aid would be sent to Indonesia as soon as possible.