IFAD FINANCES SMALLHOLDER FARMING SYSTEM AND LIVESTOCK DEVELOPMENT PROJECT
Press Release
IFAD/515
IFAD FINANCES SMALLHOLDER FARMING SYSTEM AND LIVESTOCK DEVELOPMENT PROJECT
19951221 ROME, 18 December (IFAD) -- The International Fund for Agricultural Development (IFAD) and the Government of Indonesia signed today an $18 million loan agreement to help finance the Eastern Islands Smallholder Farming Systems and Livestock Project. The agreement was signed at IFAD headquarters in Rome, by the Ambassador of Indonesia to Italy, Witjaksana Soegarda and IFAD President Fawzi H. Al-Sultan.The Project worth a total of $39.3 million will be co-financed by the Islamic Development Bank and the Government of New Zealand and will raise the standard of living of the most marginalized of the rural communities in Sulawesi and Maluku islands. It aims at increasing the incomes of some 30,000 poor rural households through provision of livestock (cattle and goats) and improved animal health and nutrition, infrastructure development, production support for annual and perennial crops, and institutional support. The project will help smallholder families overcome shortages in farm labour by providing them with draught animals under credit-in-kind arrangements, financing development of rice-fields in irrigated areas and creating additional and more productive employment opportunities for the landless, marginal and small farmers, financed by small, collateral-free credit.
The project will also encourage poor farmers to establish self-help institutions and build up their capital through increased awareness, human development and a wider access to targeted credit. The project will also specifically benefit women who would be able to earn substantial incremental annual cash income and gain financial independence within the household. Their active participation and their full integration in the activities will enhance the sense of community ownership of the project and full participation in general.
To date, Indonesia has received nine loans, amounting to $233.3 million. The terms of the loans are highly concessional, repayable in 40 years including a grace period of 10 years, with a service charge of 0.75 per cent per annum.
* *** *