Retail sector deal thrown into doubt<\/p>\n
JAKARTA (JP): City Council has questioned whether a
\ncooperation program between small entrepreneurs and Goro
\nwholesale company would continue after its management was taken
\nover by the Confederation of Primary Cooperative Associations
\n(Inkud) early this month.<\/p>\n
Head of Commission B for economic affairs, Djafar Badjeber,
\nsaid the future of the cooperation program, which they had mulled
\nover in March, was uncertain after the Goro management takeover.<\/p>\n
\"The Goro management has not informed us about the future of
\nthe cooperation after the management takeover. We hope that Inkud
\nwill continue the project because it is a good concept aimed at
\nhelping people lift their living standards,\" he said.<\/p>\n
The so-called \"warung (small shop) Goro\" concept was proposed
\nby the management of Goro to the city administration and accepted
\nby Governor Sutiyoso in February.<\/p>\n
The scheme is also intended to strengthen small shop owners so
\nthat the retail sector would no longer be dominated by
\nsupermarkets and modern stores.<\/p>\n
Under the concept, Goro will offer each store a capital of Rp
\n50 million (US$4,166) in the form of goods. Goro will also train
\nthe shop owner in retail business management.<\/p>\n
According to Djafar, about 500 people have shown interest in
\ntaking part in the cooperation program.<\/p>\n
However, he said, the Goro management has never informed the
\ncouncil on the number of people who have actually opened warung
\nGoro shops.<\/p>\n
Goro, established in 1995, was 55 percent controlled by PT
\nGoro Batara Sakti and 45 percent owned by PT Goro Yudhistira
\nUtama before the takeover. Goro Batara was 80 percent owned by PT
\nHumpuss, headed by former president Soeharto's youngest son
\nHutomo Mandala Putra, and 20 percent controlled by businessman
\nRicardo Gelael. Goro Yudhistira was 75 percent owned by Goro
\nBatara and 25 percent by Inkud.<\/p>\n
But later, Inkud said it had taken over Humpuss' 80 percent
\nstake and Gelael's 20 percent stake in Goro Batara, making it the
\nfull owner of the wholesaler.<\/p>\n
Djafar said the council planned to summon representatives of
\nInkud to discuss the matter.<\/p>\n
\"We will ask whether Goro's new management is still able to
\nsupply merchandise to warung Goro shops because they lost two
\nmarkets in the recent riots,\" he said.<\/p>\n
He added that he was not sure if the meeting could take place
\nin the near future due to the situation.<\/p>\n
Djafar said the administration should take action if the new
\nmanagement failed to continue the project.<\/p>\n
\"An alternative could be that the city speed up the
\nestablishment of its own food distribution company, PT Waserda
\nJaya, to take over the project,\" he added.<\/p>\n
The plan to establish Waserda Jaya was proposed by Deputy
\nGovernor for Economic Affairs Harun Al Rasyid in March.<\/p>\n
The new company is expected to enable cooperatives to compete
\nwith other retailers. (ind)<\/p>",
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