Small business alowed to procure official goods<\/p>\n
JAKARTA (JP): President Soeharto has called for the full
\nenforcement of rulings allowing small businesses and cooperatives
\nto procure goods, equipment or services for government offices.<\/p>\n
Minister of Cooperatives and Small Enterprises Subiakto
\nTjakrawerdaya said Thursday night that the President had ordered
\nVice President Try Sutrisno to strictly punish those violating
\nthe rulings.<\/p>\n
"The instruction makes clear that the government is committed
\nto involving small businesses and cooperatives in the procurement
\nof goods or equipment for government offices," Subiakto said in a
\nmeeting with members of the Indonesian Chamber of Commerce and
\nIndustry (Kadin).<\/p>\n
In the meeting, presided over by Coordinating Minister for
\nProduction and Distribution Hartarto Sastrosoenarto and Kadin
\nchairman Aburizal Bakrie, Kadin members were briefed about the
\nresults of the limited cabinet meeting early this week, which
\ndiscussed the poverty alleviation program and business
\npartnership between small and big companies.<\/p>\n
Also present at the meeting were Minister of National
\nDevelopment Planning Ginandjar Kartasasmita, Minister of
\nPopulation Haryono Suyono, Minister of Public Works Radinal
\nMoochtar, and hundreds of chamber members from throughout the
\ncountry.<\/p>\n
Subiakto said presidential decree No. 16 of 1994 and
\npresidential decree No. 24 of 1995 gives small businesses and
\ncooperatives a privilege in procuring goods and equipment or
\nproviding services to government offices.<\/p>\n
The minister said about 30 percent of the annual state budget
\nwas allocated for the government's routine spending, including
\nfor the procurement of equipment, goods or services.<\/p>\n
"But the implementation of the regulations is weak due to the
\nweakness of the monitoring system," Subiakto said.<\/p>\n
Subiakto said the Coordinating Ministry for Economy, Finance
\nand Development Supervision had recently issued an instruction to
\nform a new mechanism in supervising the implementation of the
\nregulations.<\/p>\n
He said government offices or other related institutions were
\ninstructed to report on the implementation of the regulations
\nevery three months to secretary generals of each ministry and the
\nreports would be audited by the Development Finance Controller.<\/p>\n
Subiakto said the government had also issued a regulation
\nwhich obliged big companies bidding for government projects to
\nstate in their tender applications about their partnership
\nprogram with small businesses and cooperatives.<\/p>\n
The more activities the big companies gave to small business
\nand cooperatives, the bigger their chance to win the tender, he
\nsaid.<\/p>\n
The government would every year issue a directory of projects
\nlimited to small business and cooperatives, he said.<\/p>\n
Also, the government would issue a regulation specifying the
\nsectors which were respectively limited to small business and
\ncooperatives and also open to big companies provided that they
\ncooperated with small businessmen and cooperatives.<\/p>\n
Chairman of the Association of Indonesian Young Entrepreneurs
\n(HIPMI) Bambang Wiyogo said the new policy showed that the
\ngovernment was taking sides with small enterprises and
\ncooperatives.<\/p>\n
In the past, despite the regulations on small business and
\ncooperatives privileges, the government did not clearly show its
\nstanding toward the groups, he said.<\/p>\n
"For me, it (the new policy) is a surprise. It's a new concept
\nof economic policy," he said. (jsk)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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