Business partnership campaign launched

Business partnership campaign launched

JAKARTA (JP): President Soeharto launched a national business
partnership drive on Wednesday, appealing to local businesses to
help each other compete in the global market.

Partnerships between large and small enterprises will help
Indonesian businesses face economic globalization and will also
modernize Indonesia's economy, Soeharto said.

"Without striving for economic unity, we will lose in a free
competition, which will become the rule of the game in the
world's future economy," he said when launching the drive.

"Our stance must be clear. Abroad, as a nation, we have to win
this free competition. Inside, as a nation, we have to help each
other so that we will become a reliable force," he said.

The President said Indonesian businesses must benefit from
intensifying international trade. The determinant of winning
global competition, he added, is improving efficiency in order to
produce goods and services with a competitive edge.

He called on companies engaged in partnerships to improve
efficiency so their partnerships will benefit consumers and not
just the companies. "This drive has to benefit not only companies
but also all the people... for the welfare of the people."

The partnership drive should help reduce the concentration of
economic resources, which, if not reduced, could widen the gap
between large and smaller businesses, he said.

Partnerships between large and small enterprises should be
based on mutual benefit, he said.

"In industrialized countries, their economic base lies with
small businesses. Thus, empowering small businesses has the same
meaning as broadening the base of our national economy," Soeharto
said, adding "We believe that small and medium-scale businesses,
which are resilient, independent and efficient, will certainly be
competent enough to compete in the free market."

Soeharto gave books on partnership programs and business
profiles by tycoons of the Jimbaran group to Minister of
Cooperatives and Small Enterprises Subiakto Tjakrawerdaya and
tycoon Anthony Salim.

The forum groups 41 large business leaders who pledged in
Jimbaran, Bali, last year to help the government eradicate
poverty by forging partnerships with smaller enterprises and
cooperatives.

The group has set up PT Mitra Dana Jimbaran with paid-up
capital of Rp 50 billion (US$22.2 million) to provide cheap
financing to the targeted enterprises and cooperatives.

Sudwikatmono, president of the country's largest cement
producer, PT Indocement Tunggal Prakarsa, said the 41 business
leaders have committed to form partnerships with 99,662 small
enterprises and cooperatives across the country, with a combined
partnership value of Rp 2.9 trillion.

PT Astra International leads the gang with a Rp 732.4 billion.
commitment to build partnerships with 28,802 small firms and
4,958 cooperatives.

PT Bank Danamon has committed to forge partnerships with 50
small firms to the tune of Rp 700 billion. It is followed by the
Salim Group, which has promised 22,896 small firms and 992
cooperatives to join a partnership worth Rp 508.2 billion.

Sudwikatmono said that as of last year, 35 business groups
have already formed partnerships with 64,478 small firms and
cooperatives, involving capital of Rp 2.8 trillion.

Astra International again led the pack with existing
partnerships valued at Rp 1.6 trillion and involving 783 small
and medium-sized firms. The Salim Group has Rp 709.8 billion in
38,932 small firms and 3,884 cooperatives. Gajah Tunggal has a
partnership valued at Rp 132.7 billion with one small firm and 74
cooperatives.

President Soeharto witnessed the signing of the partnership
commitment document. Aburizal Bakrie of the Bakrie Group
represented the 41 large businesses. Moechtar Sany, from the
multibusiness cooperative Cipta Bangun Usaha in Lampung,
represented the smaller firms and cooperatives.

Soeharto also witnessed the signing of commitment document on
human resources development and transfer of technology. T.P.
Rachmat of Astra International signed for six large businesses,
and Suharman, a small-scale entrepreneur from West Sumatra,
represented the smaller firms and cooperatives.

Soeharto's son, Bambang Trihatmodjo, who is also chairman of
the Bimantara Group, praised the drive as a way to transfer
technology and management skills from large entities to smaller
businesses.

Eka Tjipta Widjaja, chairman of the Sinar Mas Group, called on
people with annual net incomes of Rp 100 million (US$44,520) or
more to heed the government's call to donate 2 percent of their
income to the government-sponsored poverty alleviation program.

"Those who do not want to donate have no morality -- including
foreign investors here. They should realize...they earn a living
here. If they do not donate 2 percent of their incomes, they
should be ashamed," Eka said after the ceremony. (rid)