Cement deal necessary: Soeharto<\/p>\n
JAKARTA (JP): President Soeharto denied yesterday that he had
\never colluded with businessmen or extended monopoly rights over
\ncertain products to particular parties.<\/p>\n
Soeharto was speaking before some 200 members of the
\nAssociation of Small and Medium Businesses at his Tapos ranch in
\nBogor, West Java, on the subject of his relationship with the
\ncountry's wealthiest tycoon, Sudono Salim, also known as Liem
\nSioe Liong.<\/p>\n
Touching upon the assignment he gave to Sudono two decades ago
\nto build a cement factory -- which was later criticized as
\namounting to a cement monopoly -- Soeharto said: \"It wasn't based
\non collusion between me and Liem. No. It was for the sake of the
\ncountry and the nation.\"<\/p>\n
Soeharto said it was started when an American investor
\npromised to build cement plants with a production capacity of two
\nmillion tons per annum.<\/p>\n
The American investor promised to build the first phase plant
\nwith an annual capacity of 500,000 tons, he said.<\/p>\n
However, Soeharto said, the investor asked the government not
\nto extend any new licenses to other investors for other cement
\nplants before the American investor could accomplish his promise
\nof building the two cement plants.<\/p>\n
\"It meant that his cement plants abroad could export their
\nproducts to Indonesia. Therefore, we would never be independent
\n(in the cement industry),\" Soeharto said.<\/p>\n
\"Then I summoned Liem and asked him: 'Are you capable of
\nbuilding cement plants?' and he answered: 'Yes, I'm'.\"<\/p>\n
Liem started his cement venture in 1973 by establishing PT
\nIndocement Tunggal Prakarsa. With a current annual production
\ncapacity of 9.7 million tons, Indocement controls 40 percent of
\nthe country's total annual output of some 24 million tons.<\/p>\n
\"Many have accused us of collusion. The truth is that it is
\nfor the sake of the independence of domestic industries,\" he
\nadded.<\/p>\n
Soeharto denied that PT Bogasari Flour Mill, which is owned by
\nLiem, had a monopoly over wheat milling in the country.<\/p>\n
\"Bogasari is just like a tailor. This company gets fees from
\nmilling wheat into flour... Anything else out of the milling,
\nincluding flour trading, subsidies and so forth are managed by
\nthe National Logistics Agency (Bulog),\" Soeharto said.<\/p>\n
Under wheat trade regulations, Bogasari was appointed by the
\ngovernment, together with state-owned PT Berdikari Sari Flour
\nMill in Ujungpandang, South Sulawesi, to process wheat grain into
\nflour.<\/p>\n
Critics have said that Bogasari practically holds a monopoly
\nover domestic wheat milling, since it also controls the
\nmanagement of Berdikari's flour milling plant.<\/p>\n
Bogasari gets wheat from Bulog, which monopolizes the
\nimportation and distribution of wheat and other agricultural
\nproducts in Indonesia, and pays the agency after its products are
\nmarketed.<\/p>\n
\"They think that Bogasari holds wheat monopoly rights. The
\npeople think so because they actually don't understand the
\nproblem. Some might understand it but have turned the case into a
\npolitical issue,\" Soeharto said.<\/p>\n
At yesterday's gathering, Soeharto was accompanied by Minister
\nof Cooperatives and Small Enterprises Subiakto Tjakrawerdaya and
\nChairman of the Indonesian Chamber of Commerce and Industry
\nAburizal Bakrie.<\/p>\n
Soeharto also called on the people to nurture a positive image
\nof big business. \"The people have rudely accused large entities
\nof being greedy. This notion should be eliminated,\" he said.<\/p>\n
He said large businesses are necessary to help the small ones
\nto become larger through a partnership framework.<\/p>\n
\"Don't confront each other and don't curse each other.
\nInstead, establish partnerships.\"<\/p>\n
He said the initiative of the country's most influential
\nbusiness tycoons to help small businesses, which was announced in
\nBali last month, should be welcomed.<\/p>\n
\"Those big businessmen feel a responsibility to help eradicate
\npoverty in this country,\" Soeharto said, adding that September's
\ncabinet meeting had discussed possible follow-ups of tycoons'
\nannouncement. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cement-deal-necessary-soeharto-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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