Australia and Indonesia work together to improve rural development

The Australian Ambassador to Indonesia, Greg Moriarty, welcomed a new program to help bolster food security in Indonesia and improve the lives of poor Indonesian farmers.

The $112 million Australia-Indonesia Rural Development program was announced by Australia’s Prime Minister, Julia Gillard, after a bilateral meeting with President Susilo Bambang Yudhoyono yesterday in Bali.

The Ambassador said this six-year program will focus on two issues that are strategically important to both Indonesia and Australia—food security and reducing poverty.

“The new program will increase the productivity of poor Indonesian farmers by at least 30 per cent, so they can produce enough food to feed their families, and give them better access to markets,” said Ambassador Moriarty.

Indonesia is a developing country with a large population of 240 million people. Around 30 million people live below the national poverty line, and tens of millions just above it. Poor people spend three-quarters of their income on food, which means that even the smallest rise in prices can have a devastating effect on poor families.

Agriculture is a critical source of income for Indonesia’s rural poor. More productive farms can lead to significant poverty reduction. Evidence suggests that growth in the agricultural sector is four to six times more effective in reducing poverty than growth outside that sector.

The program will target provinces that have some of the highest rates of poverty in Indonesia: West and East Nusa Tenggara, West Papua, Papua and East Java.

“This new partnership will build on the work Australia is already doing with Indonesia to help tackle food insecurity such as building infrastructure, improving natural resource management, creating trade opportunities, and preventing emerging infectious diseases,” said Ambassador Moriarty.

Media enquiries:
Mia Salim – AusAID public affairs - 08121070237