The Asia Development Bank (ADB) has reached an agreement on US$ 600 million (Rp 8 trillion) loan for Indonesia to improve its irrigation system. The project is aimed at strengthening food security and reducing the number of poor people in villages. ADB water resources specialist Eric Quincieu in a written statement last week said that the program will help farmers in regencies by improving water delivery.

Quincieu says that ADB support will be integrated with the national irrigation development and management program that will finance irrigation system upgrade in 74 regencies across the country.

Aside from irrigation system, the loan will focus on the operations, maintenance, and supply of water to farmers. ” The aim is to improve the incomes and livelihoods of these rural communities, as well as to help Indonesia achieve a sustainable and more productive irrigated agriculture,” Quincieu said.

At present, despite positive trend in agriculture production, Indonesia still sees increase in food imports. It also faces skyrocketing food prices and sporadic food scarcity.

Public Works and Public Housing Ministry, in charge of irrigation infrastructure, in 2014 estimated that only 55 percent of the national irrigation system functioned in full capacity. It has resulted in declining harvest and planting intensity. Water availability has also been a problem in various regions.

In addition, climate change hampers Indonesia in the efforts to improve food production. Therefore, ADB loan will focus on improvement on irrigation system performance in target regencies. Support will also be provided to increase farmers participation in a bid to boost water supply.

To ensure sustainability, the program will help improve asset management, budgeting, and irrigation infrastructure planning. The project will introduce latest technology and climate change recovery measures to enhance irrigation services, including water management.

The irrigation project support also include financing from International Fund for Agricultural Development through Agriculture Minister to improve agriculture service and maximize the benefit of irrigation system upgrade.

As such, ADB loans for development projects totaled US$ 31,7 billion, including US$ 14 billion under complimentary financing scheme.

source: tempo.co