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Jakarta, 12 March 2007 Japan’s Grant Aid (approx. USD 1.72 million) for Indonesian Farmers
[Bahasa Indonesia]
The Japanese Government has decided to extend a total amount of up to 200 million Yen (approx. USD 1.72 million or RP 15.86 billion) grant aid to the Government of Indonesia (GOI) for supporting Indonesia’s effort to increase food production and to reduce poverty in agriculture sector. The diplomatic notes on this grant aid were signed and exchanged between H.E. Mr. Shin Ebihara, Ambassador of Japan to the Republic of Indonesia and H.E. Mr. Primo Alui Joelianto, Director General for Asia Pacific and African Affairs, Department of Foreign Affairs in Jakarta on March 12, 2007. This grant aid is titled “Grant Assistance for Underprivileged Farmers”, which is known as “Second Kennedy Round (2KR)” assistance..
Enhancing productivity is a key issue for rice production in Indonesia and, for this goal, GOI has been strengthening its effort to promote well-balanced usage of good quality fertilizers among farmers. In order to further extend this activity, GOI requested the Government of Japan (GOJ) 2KR assistance for purchasing MOP (fertilizer of potassium chloride), which cannot be procured in Indonesia. The MOP provided in 2KR assistance this time is planned to be sold in low price to farmers in Nangoroe Aceh Province, who are living in areas where the level of poverty is high because of the damage of the earthquake and tsunami. Furthermore, “Counterpart Funds” accumulated through the sale of the MOP is utilized for the support of small-scale farmers and poverty reduction. Japan expects this 2KR assistance will make a substantial contribution to increasing agricultural production and income of small-scale and poor farmers.
Poverty alleviation has been one of the major pillars in Japan’s Official Development Assistance Strategy for Indonesia, and GOJ has been mobilizing its ODA scheme, mainly through grant aid, to support GOI’s effort to combat poverty for many years. As one of the largest partners in development cooperation in Indonesia, GOJ is committed to closely collaborating with GOI in achieving poverty reduction.
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