Government withdraws Damura permit, says minister
JAKARTA (JP): The government gave a thumbs down on the fund raising scheme called Damura (the People's Fund for Sports) and decided to withdraw the permit -- issued by ex-ministry of social services on Sept. 15, 1999.
State Minister for Social Affairs and chairman of the National Social Welfare Agency (BKSN) Anak Agung Gde Agung told a press conference on Friday that the decision was made after considering complaints from citizens.
"We concluded that Damura has not followed through on its original objectives, including the time schedule to launch the product, the printing of the coupons in the United States by American partner Scientific Games International (SGI), not to mention the overbudgeted prize money which has jumped from Rp 6 billion (US$800,000) to Rp 166 billion."
"Besides the people's complaints, we also have letters from the House of Representatives Commission VII on Population and Welfare affairs and the Indonesian Consumers Agency (YLKI). We also received good feedback from the press regarding the people's negative feelings about Damura."
Anak Agung said he gave 14 working days for Damura operator, PT Mutiara Mandala Mahardhika (3M), to improve its program in accordance with the conditions.
"We don't have ant other option but to enforce the law and protect consumers.
"We realize that sports are very important in building national character. We know the old phrase 'in a healthy body lies a healthy spirit.' Sports teach us sportsmanship and toughness which are important in building character.
"I believe PT 3M and the National Sports Council (KONI), which cooperates with the company, understand and can accept our decision."
PT 3M, which planned to sell 10 million Damura scratch cards for Rp 5,000 (0.70 U.S. cents) each, failed to fulfill the 12 conditions announced by BKSN on March 24.
Anak Agung said the printing process in the United States would halt BKSN from supervising the coupons and insurance policies 10 days before being printed, as stated earlier in the first and second conditions.
The launching should have begun on Nov. 1, 1999, but PT 3M has yet to do so.
"They have been late for nearly six months. Should they force themselves to launch Damura we're afraid they'll suffer heavy losses," he said.
Speaking of the prize money, Anak Agung said the winning ratio of 1:7 would encourage people to gamble.
PT 3M general manager, Mutia Farida, had declined to lower the cash prize saying that it would not be enticing enough to consumers.
She considered prize money in the amount of Rp 25 million fair enough for consumers, and followed MUI's guidelines of not offering big prizes which might encourage people to gamble.
Anak Agung said he would suggest that the government conduct the tax deductibility program and that the ministry of finance reduce the taxes of companies 3 and 5 percent and then allocate the money to develop sports, health and social welfare programs.
"I believe this idea will encourage many large companies to take part in this program because they won't be burdened giving their money to the government."
KONI vice chairman, Arie Sudewo, said the council could accept the decision without disappointment.
"I'm not disappointed. If we fail in this program, let's find another way to raise funds that is acceptable to society." (yan)