A Memorandum of Understanding has been signed between the State Government and the Indonesian Minister for Food and Agriculture, Dr Ahmad M Saefuddin.

The Memorandum is a result of talks between the Premier, Mr. Kennett, and Indonesian President, B.J. Habibe, which identified the following areas of cooperation for assistance:

• Short term food supplementation for those most in need;
• Assistance with long term food production and food supply security;
• Assistance with the development of selected key Indonesian industries;
• Assistance with reform of Indonesian State Owned Enterprises;
• Joint ventures and assistance in education and training, particularly TAFE and business management; and
• Conduct of a feasibility study into the electrification of parts of the Indonesian rail system.

The first project to arise from the agreement is a food assistance package for the region of Tangerang, to provide urgent food supplies targeted at babies aged 6 to 12 months. New blended food products specially-developed by Victorian primary produces, food processors and nutritionists will be provided to the Tangerang, identified by the Habibe Government as being in urgent need of such aid.

A number of private sector companies in the food technology, nutritionist, agricultural, manufacturing and engineering industries have met with the Government to consider further projects. Several new assistance measures for the reform or privatisation of state-owned enterprises, agricultural education and training and rail electrification presently being considered by Indonesia.