Government withdraws Damura permit, says minister

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)