BAT backs worker cooperatives<\/p>\n
JAKARTA (JP): PT BAT Kareb, a joint venture between PT BAT
\nIndonesia -- a major Indonesian cigarette producer -- and Kareb, a
\ncooperative of workers in Bojonegoro, East Java, has proven that
\na partnership between a multinational company and a local
\ncooperative can be a mutually beneficial relationship.<\/p>\n
\"Many multinationals are reluctant to foster relationships
\nwith cooperatives because they assume local cooperatives lack the
\nprofessionalism and capability to manage large-scale businesses,\"
\nBAT Indonesia said in a statement on the development of the joint
\nventure near Surakarta, Central Java.<\/p>\n
During a visit to the BAT Kareb threshing facility on Friday,
\nBAT Indonesia president Mark Jennings said BAT Kareb proved this
\nassumption was incorrect.<\/p>\n
BAT Kareb, which is a tobacco processor, was founded in 1995.<\/p>\n
The partnership, however, does not simply encompass supplying
\ntobacco to cigarette producers; BAT Indonesia and Kareb also
\nformed a limited liability company which generates proportional
\nprofits for both parties, BAT Indonesia said.<\/p>\n
\"The joint venture has gained steady growth of over 23 percent
\nin revenue and almost doubled its production output,\" Jennings
\nsaid during a meeting with the cooperative's employees.<\/p>\n
BAT Indonesia said the joint venture's production over the
\npast three years increased from 2,595 tons of tobacco in 1996 to
\n4,440 tons in 1998.<\/p>\n
BAT Indonesia and Kareb are equally represented on the board
\nof directors of the joint venture, with each contributing half of
\nthe members, the statement added.<\/p>\n
\"In this partnership, both parties are equal partners, so
\nneither party controls or is controlled by the other,\" Jennings
\nsaid.<\/p>\n
BAT Indonesia holds 70 percent of the shares in the joint
\nventure, while Kareb holds the remaining 30 percent.<\/p>\n
Jennings said BAT Indonesia helped transfer technology and
\nmanagement know-how to the cooperative.<\/p>\n
The partnership, in return, provides BAT Indonesia with
\naccess to a threshing facility and a continuous supply of quality
\ntobacco which meets the company's standards, he said.<\/p>\n
Besides providing services for BAT Indonesia, Kareb also works
\nwith other cigarette manufacturers.<\/p>\n
The joint venture's assets amounted to Rp 14 billion,
\nincluding a 6,830-square meter factory, two 5,264-square meter
\nwarehouses and a tobacco processing facility.<\/p>\n
BAT Indonesia, established in 1917, was listed on the Jakarta
\nStock Exchange in 1979. The company is now a leading cigarette
\nproducer with a number of familiar international and local
\nbrands, including Lucky Strike, State Express 555, Kent, Benson &
\nHedges, Ardath, Commodores and Escort. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bat-backs-worker-cooperatives-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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