RI eyes barter deal with Cambodia

The Jakarta Post, Jakarta

While still struggling to clinch a barter deal to buy about 200,000 tons of rice from Thailand, Indonesia will also propose a similar scheme to buy 50,000 tons of rice from Cambodia.

Speaking after a meeting with President Megawati Soekarnoputri, head of State Logistics Agency (Bulog) Widjanarko Puspoyo said in exchange Indonesia would offer aircraft, train wagons and fertilizers to Cambodia.

He admitted however that there were not yet any technical negotiations between Indonesia and Cambodia over the plan.

Indonesia is currently trying to buy about 200,000 tons of rice worth US$40 million from Thailand through a barter scheme in which Indonesia has initially offered aircraft, train wagons, and fertilizers.

Officials of both countries met in Bangkok early this week, but failed to reach an agreement.

Although the Bangkok meeting failed to bring results, Minister of Industry and Trade Rini M. Soewandi said Indonesia was still optimistic about finalizing the deal within the next few weeks.

Bulog plans to import one million tons of rice this year while private companies are projected to import about two million tons.

However, Bulog's deputy head Andy Chaeruddin recently said the agency might raise its imports to 1.6 tons if local output was hit by abnormal weather.

Experts have warned that the El Nino weather phenomenon might return to the country this year, which would cause drought and ruin rice harvests.

Indonesia imported 1.5 million tons of rice in 2001.