RI biggest recipient of food aid in 1998

JAKARTA (JP): The economic crisis plaguing Indonesia since early July 1997 forced the country to become the world's biggest recipient of food aid in 1998, according to State Minister of Food Affairs and Horticulture A.M. Saefuddin.

Saefuddin said here on Monday that from the time the economic crisis began until the end of 1998, Indonesia had secured food aid commitments, in the form of grants and soft loans, worth US$168 million from donor countries and international institutions.

"The biggest donor is the World Food Program (WFP), providing us with a grant worth $90.5 million, mostly in the form of foodstuff for babies," he said.

In addition, Indonesia had also secured $10.2 million in food aid commitments from Australia, $53 million from the United States, $3.9 million from Canada, $750,000 from Germany, and $3.3 million from other members of the European Union.

The country also received a $5.86 million aid commitment from the International Committee of the Red Cross (ICRC), $1 million from the Office of the Coordination of Humanitarian Affairs (OCHA), $80,900 from the United Nations Development Program (UNDP), and $90.5 million from the World Food Program.

Besides, Indonesia also received grants and soft loans in the form of rice, including that from Japan, Saefuddin said.

Japan has thus far shipped 600,000 tons of rice to Indonesia, Thailand sent 5,000 tons, Vietnam 10,000 tons and Singapore 21,000 tons, he said.

In the past, food aid was only given to countries being hit by prolonged drought or war. The collection of the aid was coordinated by the United Nations. The food was then handed over to the recipient governments, which then distributed it to their people.

Saefuddin contended that food aid was directed to Indonesia because the crisis had forced many Indonesians to live below the poverty line and created dire food shortages.

He argued that the food aid was distributed by both the government and non-governmental organizations to "expedite the distribution and ensure that the aid reaches the most needy."

Most of the food aid was distributed freely to the needy, while the rest, especially the rice aid, was sold below the market price by the State Logistics Agency through market operations in a bid to stabilize prices.

Saefuddin also said the government's program of providing cheap rice for the poor had thus far reached 38.9 percent of the targeted 17.5 million people for the current fiscal year.

In July, the government launched a program to provide the country's poorest families with 20 kilograms of medium-quality rice every month for Rp 1,000 a kilo (13 U.S. cents) -- compared to the normal price of between Rp 2,000 and Rp 3,000 a kilo.

The minister said he was optimistic that the government would be able to sell all the subsidized rice to the needy.

"We are thinking of enlarging the special market operation to areas not yet registered, especially targeting poor urban families," he said. (gis)