Govt urged to cater to indigenous entrepreneurs<\/p>\n
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
\n(Kadin) has urged the government to use the economic crisis as a
\nmeans to help indigenous businesspeople gain a bigger share of
\nthe economy.<\/p>\n
The chamber's chairman, Aburizal Bakrie, said yesterday the
\ngovernment could use the crisis as a means to distribute bigger
\nand broader share ownerships of private businesses to indigenous
\nIndonesians.<\/p>\n
\"This is the perfect time to distribute the ownerships of
\nIndonesian companies to the pribumi (indigenous Indonesians)
\nfairly,\" Aburizal, known as Ical, told legislators at a House of
\nRepresentatives commission hearing.<\/p>\n
Indonesians of Chinese descent account for some five million
\nof the country's 200 million people. The small community, which
\ncontrols most of the country's commerce and wealth, has often
\nbecome a target of social resentment.<\/p>\n
Ical said such a move must be taken during the current
\nsituation rather than after the country recovers or under a new
\ngovernment.<\/p>\n
\"If we wait until the leadership changes, it could take about
\n20 to 25 years to achieve anything,\" he said.<\/p>\n
He, however, did not elaborate on whether his proposal would
\ninvolve the sale of company shares owned by Chinese Indonesian
\nbusinesspeople at discounted prices.<\/p>\n
Ical said the country needed to establish a new political
\neconomic system which catered to native Indonesians.<\/p>\n
He said he had recently introduced the idea to the dominant
\nGolkar faction and had received positive responses.<\/p>\n
\"What we need now is the political will of the people to
\nsupport this,\" he told House Commission V for manpower and trade.<\/p>\n
\"I hope other factions will agree with me on this idea so we
\ncould establish a new (system under) the Broad Outlines of State
\nPolicy which would favor us (indigenous Indonesians),\" he said.<\/p>\n
\"As an institution Kadin has no power. That is why we ask for
\nthe support of everyone through their political will,\" he said.<\/p>\n
Ical said the government could begin with the finance sector,
\nfor example, by acquiring the assets of banks which are still
\nsolvent.<\/p>\n
Such a move would help indigenous businesspeople acquire more
\nshares and increase company ownerships since the government has
\nguaranteed all depositors and debtors of private banks, he said.<\/p>\n
With the new system, indigenous Indonesians could eventually
\ncontrol at least 50 percent of the finance sector, which is now
\ndominated by the ethnic Chinese, he said.<\/p>\n
Ical said the government could use funds belonging to certain
\nfoundations -- such as pension funds which at present could
\namount to Rp 20 trillion (US$2.1 billion) -- to finance the
\nprogram.<\/p>\n
Companies seeking long-term loans from state banks, for
\nexample, should be subject to a clause which required the
\ngovernment to take over their shares if they could not pay their
\ndebts, he said.<\/p>\n
The government could then distribute the shares to indigenous
\nIndonesian businessmen, he said. (das)<\/p>",
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"sponsor": "Okusi Associates",
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