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      Pusat Informasi, Pendidikan dan
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Jakarta, May 5, 2006
The Approval of the Utilization of the Counterpart Funds Deposited under the Grant Assistance for Underprivileged Farmers
(“Strengthening the Capacity of Active Surveillance of Avian Influenza” and other projects for farmers in Indonesia)

[Bahasa Indonesia]



1. The Government of Japan (GOJ) approved the utilization of the counterpart funds deposited under “the Grant Assistance for Underprivileged Farmers” (formerly known as “the Grant Aid for Increase of Food Production”) totaling 7.3 billion Rupiah, proposed by the Government of Indonesia (GOI).


2. One of the approved utilizations is “Strengthening the Capacity of Active Surveillance of Avian Influenza by Using the Rapid Diagnostic Kit” (1.6 billion Rupiah). To prevent the wider infection of Avian Influenza of birds, the early detection and rapid response are crucial. However, there is not enough human and material resource in Indonesia. For the purpose of coping with the current situation, GOI is planning to establish a surveillance system to enable the early detection of the infection by arranging rapid diagnostic kit by utilizing the counterpart funds, together with trainings financed by GOI for staffs working in related laboratories and livestock services.


3. The approved utilizations other than the project mentioned above include;

(1) “Empowerment of Farmers Agriculture and Rural Training Center Institution” for enhancement of the ability of farm management of rural farmers,


(2) “Improving Utilization of Organic Materials and Potential Soil Microbes to Increase Crop Yield in Central and West Java” for finding and extending efficient technology to produce compost which is applicable to farmers, and


(3) “The Strengthening Management Stock Fund System through Optimal Operational Machineries and Infrastructures” for empowerment of farmers organization to better manage stock funds for farmers business and maintenance of machineries and infrastructure.

4. GOJ has provided foreign currency (Japanese Yen) through its assistance schemes such as Food Aid (KR) and the Grant Assistance for Underprivileged Farmers in order to enable recipient countries to import necessary foods, materials and equipments. The recipient countries are required to deposit in bank accounts some of the surplus of domestic currency equivalent to the value of the products purchased with Japan’s grant aid. The deposit is called “Counterpart Funds”, which shall be utilized by the recipient countries for their own economic and social development, especially for aids to small-scale farmers and mitigation of poverty. GOJ hopes to continue close cooperation with GOI so that the problems concerning poor and small-scale farmers in Indonesia will be properly addressed by utilizing the counterpart funds.