Mr. Chairman,
Fellow Governors,
Distinguished Delegates,
Ladies and Gentlemen,

First of all, allow me to congratulate on the election of the United Kingdom as the Chair with Qatar and Bangladesh as the Vice Chairs of the 29th Governing Council of IFAD.  I am sure under your able leadership, the Governing Council will have a fruitful outcomes. In this very occasion, I would also like to welcome our neighbor from Pacific, as a new member of IFAD. I am confident that the participation of Niue in IFAD would bring new perspectives into the organization of IFAD.

Distinguished Delegates,

It is generally known that the Fund has been tackling poverty not only as a lender but also as an advocate for a better future of the rural poor.  As a development institution, the Fund has indispensable responsibilities and tasks in eradicating rural poverty, particularly affecting developing member countries that represent some of the world's highest poverty concentrations.

As the Convernor of List B, I could assure you that the OPEC countries have been following closely the progress that IFAD has achieved so far. We are proud to see that IFAD presence has been felt all over the world. At the same time we are also pleased to learn that IFAD significance is not something that people are still questioning about. IFAD has firmly positioned itself as a financial institution which is truly pro-poor and pro-development. 

Distinguished Delegates,

In its evolution, IFAD has always tried its best to adapt to the new international environment and challenges. Indonesia has always extended its support to the management of IFAD when it comes to making IFAD a more effective and efficient institution. It was in this spirit that we called IFAD for a reform last year. We, as a responsible member country needs to ensure that IFAD in its effort to adapt to new global challenges and opportunities, maintain the principle of equitable distribution among the region, be it resource allocation as well as staffing composition. In this occasion, allow me, once again, to call IFAD to further its reform in order to make it more transparent and democratic. 

The new IFAD should enable to erase any discontentment among its member countries on its performance and management, which in the long run would contribute to the sustainability of this organization. As the Convernor of List B, let me assure you that list B countries have committed to strengthen its role in IFAD to enable it to become more efficient and responsive.

Distinguished Delegates,

We believe that the 29th session of the Governing Council is very timely to choose “Innovation Challenges for the Rural Poor” as the theme for this meeting. IFAD should become a champion to advocate new ideas to eliminate hunger and poverty.

Our Government realizes the importance of innovations in order to achieve the Fund's objectives through expanding its role on programs and projects that focus on (i) developing Agriculture Insurance, (ii) developing Warehouse Receipts System in the agriculture sector, (iii) integrating border-area rural development programs into a Regional Project, and (iv) optimizing capacity building programs and representation among developing member countries.
The Government of Indonesia is fully committed in supporting the Fund's effort to achieve the stated Millennium Development Goals of halving the world's poverty rate by the year 2015.
On the much discussed global issue of Avian Flu, we are acutely aware of the life-threatening consequences and economic havoc this communicable disease has caused on our society.  In this important forum, we would like to seek your commitment to actively participate in various programs in combating the problem of HPAI.

Distinguished Delagates,

We would like to share our experience through South-South cooperation.   In 1981, Indonesia established the Indonesian Technical Cooperation Program (ITCP), which has continuously offered programs to all developing countries in the framework of Technical Cooperation among Developing Countries (TCDC).  Through this program, Indonesia had shared its experience, expertise and vision of development with other developing countries.  This program had been successful in coping some agriculture problems in African countries, such as Gambia.  However, due to economic crisis faced by Indonesia, this program could not be continued.  In this regard, we would like to suggest IFAD on the continuity of this kind of programs through tripartite mechanism, in which IFAD provides fund, a member country provides its expertise and other countries become the beneficiaries.

Distinguished Delagates,

Now, let me turn to a few key developments in Indonesia. In 2005, we achieved GDP growth around 5.8 percent with this year's GDP forecasted at 6.2 percent.

Agriculture is a vital sector for Indonesia contributing 7% of non-oil exports and 15% of GDP. To increase awareness among our society, in June 2005 the Government initiated a revitalization program targeting the agriculture, fishery, and forestry sectors. This program forms an integral, community-focused plan chosen by our President and his cabinet for supporting increased economic growth, employment opportunities, and poverty alleviation. Agricultural revitalization means having the awareness to proportionally reposition this vital sector through improvement of its performance and contribution to the nation's economic development.

Agricultural revitalization also aims to solidify commitments and cooperation among various stakeholders by changing the way we think about agriculture from other than just as source of commodities for consumption.  Agriculture has to be considered as a multi-dimensional sector of which a majority of Indonesian livelihoods depend on.

Over these past 28 years, our priorities and joint efforts have focused on the development of agricultural infrastructure and community empowerment. These initiatives have resulted in tangible benefits in terms of economical, social, environmental, and technological importance.  To this end, we would like to express our sincere appreciation to the Fund and the partnering role it has played in these areas.

Distinguished Delagates,

We would like to re-affirm our government's commitment and support to the Fund. In this auspices occasion, allow me to call on member countries to help institution meet its target of the seventh replenishment by giving their pledges or even further to increase their contribution.  To this end, the Government of Indonesia, despite of the hardship we faced over the tsunami tragedy last year, has decided to maintain a contribution to the Fund's Seventh Replenishment in the amount of USD 5 million. 

Before I conclude, on behalf of the Government of the Republic of Indonesia, I would like to express our sincere appreciation to the President of IFAD and his team for their excellent work in arranging the success of this important meeting of the 29th Governing Council of IFAD.
I thank you for your kind attention.