Thu, 13 Jul 2000

Government pledges to support cooperatives

JAKARTA (JP): President Abdurrahman Wahid reiterated on Wednesday his government will uphold Article 33 of the 1945 Constitution because it ensures people's rights to the state riches.

Speaking in a ceremony to mark the country's 53rd Cooperatives Day at the State Palace, the President said he would fight any plan to amend the ruling.

"I hope that Article 33 in its current form will not be replaced, because the government is determined to promote cooperatives," Abdurrahman said.

The article stipulates the economy shall be organized as a common endeavor based upon the principle of the family system. Meanwhile branches of production which are important for the state and which affect the life of most people shall be controlled by the state.

"Land and water and natural riches contained therein shall be controlled by the state and shall be made use of for the people," the article says.

The President also disclosed the government's strategy to encourage private sectors, including foreign investors, to provide financial credits for private development. The government will concentrate on providing loans for cooperatives and small scale businesses.

"The credits derived from the government will be provided for small and medium scale businesses, which means for cooperatives," Abdurrahman remarked.

During the ceremony, the President was accompanied by Vice President Megawati Soekarnoputri, and State Minister of Cooperatives Zarkasih Nur.

Zarkasih's predecessors Subiakto Tjakrawerdaja and Adi Sasono were also present.

Adi's presence attracted attention, because he reportedly was on a list of people to be questioned by the Attorney General's Office for his political activities.

Earlier this month Adi, a close confidant of former president B.J. Habibie, told an Australian newspaper that Abdurrahman should be replaced by Megawati due to his poor performance in leading the country.

During the ceremony, a Memorandum of Understanding was signed between the Indonesian Cooperatives Council (Dekopin), represented by its chairman Nurdin Halid, and PT Siwani Trimitra, represented by businessman Edward Soeryadjaya. (prb/byg)