Japan is to donate nearly forty million dollars worth of aid to Indonesia in aneffort to help reduce poverty and boost food production which fell last year.

The agreement was signed by the visiting Japanese foreign minister, Masahiko Komura, and his Indonesian counterpart, Ali Alatas, in Jakarta.

Mr Komura paid tribute to Indonesia for implementing reforms in an effort to overcome its economic crisis, and pledged Japan's continued support.

Part of the aid money will pay for the import of fertilizers, and equipment such as tractors to help accelerate crop production.