Conglomerates 'may not control economy'
Conglomerates 'may not control economy'
JAKARTA (JP): President Soeharto insisted yesterday
conglomerates would not be allowed to control the national
economy and called for more emphasis on the development of small
businesses and cooperatives.
"In fact, we don't want the national economy to be controlled
only by conglomerates. We also don't want a national economy
which benefits only conglomerates," Soeharto said.
The President said the national economic system should
emphasize partnerships. Thus, small businesses and cooperatives
should be given opportunities and assistance to develop.
Soeharto said conglomerates could not stand alone and were
also dependent on small businesses and cooperatives.
But the President said the government would still support
conglomerates despite giving more attention to small companies
and cooperatives.
Their presence is needed to enable Indonesia to compete in the
global economy, he said.
"What we have to do is give a little economic support,
facilities and chances to improve their role in the national
economy," Soeharto said at a ceremony inaugurating the Management
Development Center of PT Astra International, Indonesia's largest
car maker.
Present at the ceremony were Astra's president commissioner,
Muhamad "Bob" Hasan and State Secretary Moerdiono and the
minister of cooperatives and small enterprises, Subiakto
Tjakrawerdaya.
Nusamba, a business group owned by three foundations chaired
by Soeharto, bought about 8 percent of the publicly listed Astra
last year.
Only recently the group, headed by Bob Hasan, also bought 49
percent of PT Indocopper Investama Corporation, which owns 9.6
percent of Freeport Indonesia.
The group, through its subsidiaries, also has a 30 percent
stake in the huge Busang gold mine in East Kalimantan.
Soeharto said the responsibility of helping small businesses
and cooperatives did not only lie only with the government but
also with conglomerates.
He said the government and conglomerates had taken some
measures to help small businesses and cooperatives.
The government has asked banks to give more credit to small
businesses and cooperatives. He said about a fifth of bank loans
went to small companies.
State-owned companies and conglomerates had also earmarked
some of their profit to alleviate poverty.
But small businesses and cooperatives still had human resource
and management problems, he said.
To help solve this problem the government will establish
business consultancy clinics run by jobless university graduates,
to train small businesses and cooperatives. The clinics will
initially be set up across Java.
The President called on conglomerates to take the government's
effort to bridge the gap between the rich and the poor seriously.
"Honestly speaking, as long as the gap exists, the issue will
be used by people who don't like Indonesia progressing. They will
use it as a political issue to excite people," he said.
"Finally, if those who listen to them can't control themselves
and ruin everything. It's us who suffers the loss," he said.
Soeharto praised Astra for assisting small businesses and
cooperatives in 16 countries. Other conglomerates could imitate
Astra's efforts, he said.
Bob Hasan said the company had given managerial, technical and
marketing assistance to 66,274 small businesses and cooperatives.
(jsk)