U.S. to offer $56m in aid to Indonesia
U.S. to offer $56m in aid to Indonesia
WASHINGTON (Dow Jones): The U.S. will offer US$56 million in
food and medical supplies to meet immediate humanitarian needs in
Indonesia, a government official said Tuesday.
Stuart Eizenstat, undersecretary of State for economic,
business and agricultural affairs, said the U.S. has significant
national security and economic interests in the Asian country.
A fact sheet distributed after Eizenstat briefed reporters
said the U.S. Agency for International Development will make
available $25 million in PL-480 Title II funds to provide food
aid to be distributed by private voluntary organizations to rural
poor in eastern Indonesia, where the economic crisis has been
exacerbated by an ongoing drought.
In addition, USAID will provide $6 million in essential
medical supplies to meet immediate needs of the poor.
Furthermore, the U.S. Department of Agriculture will make
available $25 million in concessionary loans under the PL-480
Title I program for public sector purchases of U.S. food.
The precise amounts and commodities must be negotiated, but
the assistance will facilitate imports of products that USDA has
identified as being in short supply - such as wheat, soybeans and
rice - as a result of drought-induced crop reductions, much less
favorable exchange rate and the general economic downturn.
In addition to the new programs, USAID and USDA have other,
ongoing programs totaling about $520 million designed to help
Indonesia.
Eizenstat said efforts are being made to restore stability in
Indonesia and prevent worsening of the economic crisis.
"We continue to be concerned about the potential humanitarian
effect of this crisis on the Indonesia people, particularly the
poorest members of society," he said.
"This crisis comes at a time when the country is also coping
with the worst drought in 50 years brought on by El Nio," he
said. "Higher prices combined with lower incomes caused by the
economic downturn will make food and other essential goods
increasingly unaffordable by the poor.
"Although multilateral and bilateral balance of payments
financial assistance cannot move forward absent the appropriate
policy framework and implementation, humanitarian assistance can
and should move forward as necessary."