Astra expands partnership programs
CEPER, C. Java (JP): The business partnership program that PT Astra International launched in 1991 to develop small casting firms has now expanded to the point of attracting foreign attention.
The Japan Indonesian Association for Economic Cooperation and Kawaguchi, the largest foundry center in Japan, signed here on Saturday a cooperation agreement with the Metallurgical Institute owned jointly by the local casting firms.
"We are committed to helping develop Ceper into the best foundry center in Indonesia," noted Kenichi Masuda, Chairman of the Kawaguchi Foundry Technical Exchange Cooperative Association.
Masuda said his organization was now preparing a pilot project of a modern foundry plant to help improve the quality of local metal goods.
The signing of the cooperation agreement, which was also witnessed by Minister of Finance Mar'ie Muhammad and Minister of Cooperatives and Small Business Development Soebiakto Tjakrawerdaja, coincided with the launching of several other development programs for local companies.
On the occasion, PT Astra Mitra Ventura and state-owned PT Bahana Artha Venture-- both venture capital companies-- put up Rp 800 million (US$360,000) in equity capital in PT Baja Kurnia, a local metal goods company.
Bank Universal, an Astra financial subsidiary, provided Rp 200 million in loan funds also to Baja Kurnia, one of the small firms assisted under the Astra Business Partnership program which has now become a medium-scale enterprise.
Help
"It has always been our commitment to help raise the capability of small and medium-scale enterprises," noted Rini M.S. Soewandi, the chair of the Dharma Bhakti Astra Foundation--the Astra arm for community and small business development.
Rini said at the ceremony that the foundation, in cooperation with Astra subsidiaries, has been conducting various forms of cooperation with small and medium-scale firms in a bid to increase their capabilities.
In addition to equity and loan funds, the Astra subsidiaries have been providing technical, management and marketing assistance as well as apprenticeships to small businessmen in various provinces, added Rini who is also Astra's financial director.
Palgunadi T.Setyawan, President of PT Astra Mitra Ventura, explained that the small business development program in Ceper is part of the Astra Business Partnership Program which was launched in 1980.
"We have been assisting small firms in Jakarta, West, Central and East Java and many of them have now become vendors or sub- contractors for Astra subsidiaries," Palgunadi said.
Rini added the Astra foundation was now preparing financing aid packages for 2,000 oil palm smallholders in South Sumatra and 700 small businessmen at Jombang, East Java.
Astra's Chairman A.R. Ramly said the Astra program should not be seen as a charity activity but as a concerted effort to strengthen small and medium firms.
"We really expect many of the small and medium-scale firms we help develop to eventually become equal business partners for Astra subsidiaries," Ramly noted.
Palgunadi added that PT Astra Mitra Ventura and PT Bahana Artha Ventura had earlier tied up to provide Rp 3 billion in equity capital to 12 small and medium-scale enterprises in Jakarta and West Java. (vin)