Taiwan agrees to give Indonesia rice as aid

Taiwan agrees to give Indonesia rice as aid

TAIPEI (Reuters): Taiwan, eager to lend a helping hand to the financially battered Southeast Asia, said yesterday it would aid Indonesia with 200,000 tons of rice.

Taiwan's state radio said the agriculture council and foreign ministry have decided to aid Indonesia with 200,000 tons of rice worth over US$50 million.

Indonesia could pay for the rice in cash or through a barter deal, the radio said. It gave no further details.

An official at the Council of Agriculture reached by telephone declined to confirm the deal but said Taiwan has plenty of rice in storage.

"The foreign ministry has asked if we have 200,000 tons of rice and the answer is yes," the council's vice chairman Lin Shiang-nung said by telephone.

A foreign ministry official said the government was studying various plans to help.

"We are sincere to help but the deal has not been finalized," the official said.

Taiwan, the sixth biggest foreign investor in Indonesia, on Thursday urged its people to be cautious about investing and travelling in the riot-torn country.

"We should adopt a wait-and-see attitude for investments and visits in Indonesia until after the situation calms down," Economic Minister Wang Chih-kang told reporters.

Wang, who met a visiting Indonesian delegation led by Indonesia's Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita earlier on the day, said the sides did not discuss a reported "oil for rice" deal.

Taiwan media said Ginandjar, who arrived in Taipei on Wednesday, would propose giving Taiwan oil in exchange for 200,000 tons of rice during meetings with Taiwan leaders, including Premier Vincent Siew.

Taiwan imports liquefied natural gas from Indonesia every year.

Officials declined to reveal Ginandjar's itinerary, citing political sensitivity.

Indonesia recognises Taipei's arch-rival, the communist People's Republic of China, not Taiwan's exiled Republic of China.

Relatively unscathed in Asia's financial turmoil, Taiwan has used its financial muscle to defy a diplomatic embargo enforced by rival China, which has warned Southeast Asia not to allow the wealthy Nationalist-ruled island to exploit their difficulties for its political gain.