Poverty is chiefly government's problem: Sofyan<\/p>\n
JAKARTA (JP): The government's decision to hold a quarterly
\ncabinet meeting to discuss poverty eradication is a timely
\nrecognition that poverty is chiefly the problem of the government
\nand not the business community, businessman Sofyan Wanandi says.<\/p>\n
\"All this time, large entrepreneurs have been made the
\nscapegoat for the huge disparity between the rich and the poor,\"
\nSofyan, chairman of the widely diversified Gemala business group,
\ntold The Jakarta Post yesterday.<\/p>\n
He was commenting on Tuesday's cabinet meeting led by
\nPresident Soeharto.<\/p>\n
The meeting, which lasted for four and half hours without a
\nlunch break, focused solely on the government's efforts to
\neradicate poverty and promoting greater income equality.<\/p>\n
The government estimated that 25.9 million, or 14 percent of
\nIndonesia's 200 million population, live below the poverty line.<\/p>\n
The meeting heard the report of nine cabinet ministers on the
\nimplementation of the government's anti-poverty programs. Besides
\nhelping to lift those below the poverty line, the programs
\ninclude promoting small and medium enterprises.<\/p>\n
The government plans to hold the meeting every three months.<\/p>\n
\"Poverty is, first and foremost, the problem and the
\nresponsibility of the government. We, the large corporations will
\nsupport the efforts,\" said Sofyan, who is also the chief
\nspokesman for the Jimbaran Group of conglomerates.<\/p>\n
He said by holding the meeting regularly, the government has
\ntaken the main focus of national development to the poverty
\nproblem, something that has never been done in the history of the
\nNew Order government.<\/p>\n
\"This is a good start,\" he said, adding that hopefully, there
\nwould be even better coordination among government agencies in
\nthe anti-poverty drive.<\/p>\n
Separately, the Indonesian Chamber of Commerce and Industry
\nwelcomed the decision which it said reflect the government's
\n\"political will\" to eradicate poverty and promote equality.<\/p>\n
The chamber, in a short statement, said it is hopeful that the
\ngovernment's objectives would now be achieved in a short time.<\/p>\n
Sofyan said that conglomerates have been willing to assist in
\nthe government's endeavor, but they cannot be expected to carry
\nthe entire burden of guiding the small enterprises.<\/p>\n
\"Our chief role is not to guide the small enterprises. Our
\nchief role in development is in providing jobs, earning foreign
\nexchanges and pay taxes,\" he said.<\/p>\n
Soeharto has repeatedly turned to giant conglomerates to help
\nin poverty eradication drive. Last year he decreed that
\nindividuals and corporations whose after-tax annual income
\nexceeds Rp 100 million must pay an additional 2 percent towards a
\nnew anti-poverty fund.<\/p>\n
Previously Soeharto had also required conglomerates to give up
\n2 percent of equity in their companies to cooperatives.
\nConglomerates are also encouraged to enter into partnerships with
\ncooperatives, small and medium enterprises.<\/p>\n
Sofyan admitted that the various programs were \"burdens\" to
\nthe conglomerates in the short run because they cut into their
\nprofits and possibly even their competitive edge. \"But what can
\nwe do? The political pressure is so strong. If we don't comply,
\nwe'd be in trouble.\"<\/p>\n
The President has often reminded the big conglomerates that
\nthey owed their successes to the New Order government and that it
\nwas only right if now they paid back to society.<\/p>\n
Sofyan is hopeful that the conglomerates will only have to
\nsubsidize the small enterprises for between two to five years
\nbefore they can stand on their own feet.<\/p>\n
\"We will then reap the benefits because these small and medium
\nenterprises will eventually give us something back.<\/p>\n
\"It's a win-win situation,\" he said. \"But initially, it is a
\npolitical cost. There is no other way.\"<\/p>\n
Tuesday's meeting agreed that contracts for government
\nprocurements will only be given to small and medium enterprises.
\nAnother decision was that big conglomerates cannot operate
\nsupermarkets at regency towns and below. The sector is reserved
\nonly for small and medium enterprises.<\/p>\n
In the past, procurement projects were awarded to large
\ncorporations, and they in turn were expected to parcel them out
\nto small enterprises, although this rarely happened, Sofyan said.<\/p>\n
\"With the new policy, the small enterprises get the first
\npriority and if they cannot do it, then they would invite the
\n`biggies',\" he said.<\/p>\n
He welcomed the ruling on supermarket operations. \"We will
\nhave to find shops, upgrade them, and work in partnerships. They
\nwill profit and we will be able to sell even more.\"<\/p>\n
Sofyan cautioned that the various government programs for
\npoverty eradication and promotion of greater equality have
\nencountered problems in their implementations in the field.<\/p>\n
\"The problem is in the implementation,\" he said, adding that
\n\"this has always been our weakness.\"<\/p>\n
He hoped that at the quarterly cabinet meeting on poverty,
\nthese problems would be raised, and eventually dealt with.<\/p>\n
Asked about criticisms doubting the conglomerates' commitment
\nto eradicating poverty, Sofyan said members of the Jimbaran group
\nhave done more than their share in these endeavors, such as
\nallocating shares to cooperatives and in contributing 2 percent
\nof their after tax incomes towards the anti-poverty fund.<\/p>\n
But there were conglomerates outside the Jimbaran group who
\ndid not participate because they did not feel the obligation.
\n\"That's why we urged the government to make them compulsory,\" he
\nsaid. (05\/emb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/poverty-is-chiefly-governments-problem-sofyan-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}