Three agricultural projects confirmed

The Jakarta Post, Jakarta

A recent trip by a government delegation to the Middle East appears to be bearing fruit as the Islamic Development Bank (IDB) has confirmed it will provide financing of up to US$120 million (some Rp 1.12 trillion) for the development of agricultural infrastructure projects here.

The Minister of Agriculture Anton Apriyantono said during a hearing with legislators late on Wednesday that the financing, in the form of soft loans, could be disbursed by the end of the year.

The projects consist of the $35 million rehabilitation of the irrigation scheme in Jatiluhur, West Java, the $50 million development of a reservoir to mitigate the effects of drought along the north coast of Java, and the $35 million rehabilitation of damaged agricultural infrastructure in tsunami-wrecked Aceh.

The three schemes are part of 10 agricultural projects worth $1.57 billion that were put on the table during a recent trip to the region by a government delegation led by Minister of Agriculture Anton Apriyantono.

"Of the 10 projects we proposed, these are the ones that have been confirmed by the IDB," said the ministry's director general for agricultural infrastructure Ato Suprapto, adding that a formal agreement was expected to be signed before July.

Ato added that although the details were still being worked out with the IDB, the soft loans could carry interest rates as low as less than 1 percent per annum over 12-year terms.

Ato said that financing for the eight remaining projects was being sought from the Kuwait Development Fund and the Saudi Development Fund.

He added that the Saudi Development Fund had pledged a separate soft loan of about $50 million for infrastructure and agriculture rehabilitation projects in tsunami-devastated Aceh. (002)