Firms not clear on poor funds

Firms not clear on poor funds

JAKARTA (JP): Foreign-owned companies may leave Indonesia if the government fails to explain the nature of the "two percent of profit" donation for its poverty alleviation program, a tycoon warned over the weekend.

Sofyan Wanandi, chairman of the Gemala Group, questioned wether large foreign companies are really willing to donate two percent of their profits to the Dana Sejahtera Mandiri Foundation.

The foundation was established by President Soeharto and a number of local tycoons last month to implement Presidential Decree No. 90/1995, which calls on companies and individuals with after-tax income of more than Rp 100 million (US$43,252) to set aside up to 2 percent of their profits for the "poverty eradication program".

"I doubt if large foreign companies really want to pay it. As for large domestic firms, I think most of them will pay," Sofyan was quoted by Antara as saying.

Concurring with Sofyan's argument, Sudwikatmono, president of PT Indocement Tunggal Prakarsa, said 10 local tycoons will meet President Soeharto today to express their commitment to helping the poverty eradication program.

Among the ten tycoons are Sudono Salim (better known as Liem Sioe Liong), Eka Tjipta Widjaja, Henry Pribadi, Prajogo Pangestu and Sudwikatmono himself. (kod/rid)