Grant Aid for Increase of Food Production

Period (Date of Exchange of Notes (E/N)):
    March 18, 2004


Amount Provided:
    600 million yen (about US$ 5,45 million / Rp. 46,4 billion)

Poverty alleviation is one of the focused areas of Japanese ODA towards the Republic of Indonesia. The government of Japan has a policy to support this area mainly through grant assistance.

Because an increase in the production of rice, which is an Indonesia’s main food source, is required, the Government of Indonesia tries to promote a well-balanced fertilizer system. By providing good quality and comparatively cheap fertilizers and introducing a model system of fertilizers to farmers in selected areas, this grant assists the Government of Indonesia in purchasing MOP (fertilizer of potassium chloride), which cannot be acquired in the domestic market. In addition, its counterpart fund, which is reserved by selling MOP in the domestic market, will be utilized for small farming or poverty reduction.