Rp 2.8 trillion spent to help small business<\/p>\n
JAKARTA (JP): State Minister of Cooperatives and Small-scale
\nEnterprises Subiakto Tjakrawerdaya said yesterday that state
\ncompanies and the Jimbaran-club tycoons had spent Rp 2.8 trillion
\n(US1.1 billion) helping cooperatives and small business over the
\nlast six years.<\/p>\n
The state companies had provided Rp 687 billion between 1990
\nand November this year in low-interest loans. And the Jimbaran
\ngroup had spent about Rp 2.1 trillion this year on business
\npartnership programs.<\/p>\n
The Jimbaran club is the name of a group of 48 tycoons who
\npledged at a meeting early last year in Jimbaran, Bali, to help
\nthe government eradicate poverty.<\/p>\n
The group began helping cooperatives and small business this
\nyear.<\/p>\n
State companies have been involved in the government's program
\nsince 1990. They are required to set aside up to 5 percent of
\ntheir after-tax profits to help cooperatives and small business.<\/p>\n
Early this year, the Jimbaran group committed to spending Rp
\n2.9 trillion on cooperatives and small business through low-
\ninterest loans or business partnerships.<\/p>\n
Some of the group's members had not fulfilled their promise,
\nthe minister said. He refused to name them.<\/p>\n
\"We shall hold a special meeting with those who are yet to
\nfulfill their promise, urging them to realize them soon,\" he told
\nan end-of-year press conference.<\/p>\n
Subiakto said some Jimbaran members were still studying the
\nbest ways to channel funds to cooperatives and small business.
\nMany of them had set up special divisions to handle the funds.<\/p>\n
He said state companies had allocated about 930 billion in
\ntheir budgets since 1990, but only Rp 687 billion had been
\ndistributed.<\/p>\n
They had allocated Rp 188 billion this year but only Rp 102
\nbillion had been channeled, he said.<\/p>\n
As part of the government's program to cut disparity between
\nlarge and small companies, President Soeharto called on big
\nbusinesses in 1990 to sell their shares to cooperatives and small
\nbusiness. Subiakto said only 110 of the 248 publicly listed
\ncompanies had done this, while 201 unlisted companies had
\nfollowed his appeal.<\/p>\n
The President urged companies to sell their shares to
\ncooperatives at nominal prices or around 10 percent of their
\nmarket value.<\/p>\n
\"We still encourage them to sell their shares as urged by the
\nPresident,\" he said.<\/p>\n
The program to help cooperatives and small business was
\nfruitful: 3,573 small businesses had grown to become medium-scale
\nbusinesses this year, above our target of 3,400, he said.
\n\"Another 3,948 small businesses had become independent (from the
\nprogram), below our target of 7,540,\" he said.<\/p>\n
The government expected to help 15,000 small businesses become
\nmedium-scale businesses and another 20,000 small businesses
\nbecome independent at the end of this Five Year Development Plan
\nin 1999, he said.<\/p>\n
Subiakto said cooperatives had done increasingly well
\nthroughout the year.<\/p>\n
There are now 48,335 cooperatives, up from 46,456 last year,
\nwith 26.9 million members, up from 26.3 million last year.
\nCooperatives' assets are worth Rp 5.9 trillion, up from Rp 5.7
\ntrillion at the end of last year.<\/p>\n
The minister said President Soeharto would name 1997 as the
\nYear of Cooperatives to coincide with the golden anniversary of
\nIndonesian cooperatives.<\/p>\n
The President would also name 1997 as the Year of
\nTelecommunications. (jsk)<\/p>",
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"sponsor": "Okusi Associates",
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