100,000 metric tons of rice a year for five yearsSiem Reap (ANTARA News) - Indonesia agreed to buy 100,000 metric tons of rice a year for five years from Cambodia and in return Cambodia would import fertilizers and agricultural equipment like tractors and rice hullers.
The agreement was signed on Tuesday on the sidelines of the 44th ASEAN economic ministerial meeting by Indonesian trade minister Gita Wirjawan and his Cambodian counterpart Cham Prasidh.
The signing of the agreement was also witnessed by Indonesian ambassador to Cambodia Hardjono Sastromihardjo and a number of Indonesian businessmen who run businesses in Cambodia such as Rudy Halim from PT Padi Tonle and Mohamad Helm from PT Galuh Prabu Trijaya.
"This is the first historic signing of an agreement," Gita Wirjawan said.
"And more agreements like this one will be signed later," he added.
Cham Prasidh looked happy at the signing of the agreement.
Cambodia produced 8.25 million tons of rice in 2011 and this year that country has set itself a target of exporting 180,000 tons and minimally one million tons until 2015.
Prasidh said talks on the rice purchase deal actually had been done for a long time and so he was glad hat it was finally realized.
Asked on what Cambodia would buy in exchange for the rice purchase Prasidh said it would buy anything Indonesia has and needed by Cambodia.
As 80 percent of the Cambodian population are farmers what Cambodia would therefore need fertilizers and agricultural technology including post-harvest technology, he said.
"We need fertilizers, tractors and hulling equipment. So, Indonesian businessmen are invited to supply them in cooperation with our partners," he said.
Gita Wirjawan meanwhile said that the agreement would become a legal umbrella which would later be implemented by state-owned logistics company Bulog.
He said Indonesia had also signed similar agreements with Thailand and Vietnam before.
(H-YH/A014)
Editor: Ella Syafputri
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