Conglomerates' idea wins support<\/p>\n
JAKARTA (JP): Chairman of the Indonesian Chamber of Commerce
\nand Industry (Kadin) Aburizal Bakrie welcomed yesterday a
\nproposal that large companies allocate two percent of their
\nprofits to helping narrow the gap between rich and poor in
\nIndonesia.<\/p>\n
\"Good. It's a good idea. I think we should arrange the next
\nsteps and how to undertake it,\" he said after attending the
\nofficial launching of a cellular digital radio telephones (CDRL)
\nproject by Minister of Tourism, Post and Telecommunications Joop
\nAve at the Wisma Bakrie building yesterday.<\/p>\n
An Indonesian business tycoon, Eka Tjipta Widjaja, suggested
\non Tuesday that large and medium-sized businesses with profits of
\nor exceeding Rp 100 million (US$44,150) per year might contribute
\ntwo percent of their profits to finance measures aimed at
\nnarrowing the economic gap.<\/p>\n
A number of the country's leading conglomerate owners issued a
\ndeclaration in Bali on Sunday in which they said they would
\ndevelop business partnerships with small and medium-sized
\ncompanies.<\/p>\n
According to Aburizal, better known as Ical, Kadin has already
\nprepared follow-up measures to the declaration.<\/p>\n
\"A number of Kadin executives met on Tuesday with leaders of
\nthe Prasetiya Mulya foundation to discuss possible partnerships
\nin certain areas,\" he said. \"I hope that by the end of this year
\nKadin will be able to commence certain projects.\"<\/p>\n
Economist I Nyoman Moena said that Eka's proposal was
\n\"noteworthy, because it has been put forward by one of our
\nleading businessmen.\"<\/p>\n
Moena, a former president of PT Surveyor Indonesia, said the
\ntwo percent of profits proposed by Eka should be taken from net
\nprofits, so that it does not reduce the companies' taxable
\nincomes.<\/p>\n
The proposal, however, still requires the support of other
\nconglomerate owners, Moena said. He suggested that the country's
\nleading business figures establish a forum to attend to the
\nrealization of the objectives set forth in the Bali declaration.<\/p>\n
He added: \"If Eka's proposal can be realized, there will be a
\nlarge pool of cheap funds which can be used by small and medium-
\nsized enterprises.\"<\/p>\n
Radio phones<\/p>\n
The CDRL project, launched yesterday, belongs to PT Radio
\nTelephone Indonesia (Ratelindo), a subsidiary of the Bakrie
\nGroup.<\/p>\n
Ratelindo is 55 percent owned by PT Bakrie Electronics Company
\nof the Bakrie Group and 45 percent owned by state-owned domestic
\ntelecommunications operator PT Telkom.<\/p>\n
Ratelindo's president, Hardianto Kamarga, said that the
\ncompany had allocated some $82 million for the CDRL project,
\nwhich includes the installation of 21 base transceiver stations.<\/p>\n
The government has licensed the company to install 280,000
\nCDRL lines, of which 250,000 are to be installed in the greater
\nJakarta area and 30,000 in Bandung, West Java.<\/p>\n
Ratelindo's CDRL system, the first of its kind in Indonesia,
\nwill use radio frequencies rather than wire cables. Call tariffs
\nwill be the same as those applying to the use of the fixed lines
\noperated by Telkom. (icn\/rid)<\/p>",
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