Japan extending yen 200 million grant to boost RI food production

Jakarta (ANTARA News) - The Japanese governemnt is extendng a Yen 200 million (Rp15.86 billion or US$ 1.72 million) grant to Indonesia in support of efforts to increase food production and alleviate poverty in the agricultural sector.

Diplomatic notes on the grant were exchanged and signed here Monday by Japanese Ambassador to Indonesia Shin Ebihara and Director General for Asia-Pacific and Africa at the Foreign Ministry Primo Alui Joelianto.

A statement fom the Japanse Embasssy said the grant in aid was intended for indigent farmers and given under the "Second Kennedy Round (2KR)".

The Indonesian government had asked the Japanese government for 2KR aid to buy potassium chloride fertilizer (MOP) that is not available in Indonesia.

The Indonesian government would sell the fertilizer at a low price to farmers in Nanggroe Aceh Darussalam (NAD) living in areas where the poverty rate is still high as a consequence of the Dec 2004 earthquake and tsunami.

The proceeds from the fertilizer sales would be used to support small-scale farmers and alleviate poverty.

Poverty alleviation is one of the main pillars of Japan`s strategy in providing ODA (Official Development Assistance) to Indonesia.

As one of Indonesia`s main development cooperation partners, the Japanese governemnt was committed to cooperating closely with the Indonesian government to achieve certain poverty alleviation targets, the embassy said in its statement.