Thu, 09 Apr 1998

Govt denies report on Goro

JAKARTA (JP): Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita denied yesterday that the government granted a privilege to wholesaler PT Goro Batara Sakti to distribute basic commodities across the country.

"The government will no longer tolerate any monopoly in any form to anybody or to any company," Ginandjar said during a media conference after the monthly cabinet meeting on economic affairs.

Ginandjar pointed out that President Soeharto himself had repeatedly expressed his strong commitment to eradicating monopolistic practices.

"I want to correct some mass media reports that implied that Goro will hold a monopoly in the distribution of non-essential goods in the provinces," he said in reply to reporters' questions.

Wholesaler Goro is 45 percent owned by President Soeharto's youngest son Hutomo Mandala Putra through his Humpuss business group, 40 percent by cooperatives and 15 percent by the State Logistics Agency (Bulog).

Minister of Cooperatives and Small Cooperatives Subiakto Tjakrawerdaja said Monday after a meeting with President Soeharto that Goro was asked by the government to help distribute nationwide basic commodities, other than food staples, in a bid to help small scale enterprises and cooperatives.

Subiakto added that Goro would not use Bulog's distribution facilities but the two institutions would cooperate in assisting the development of cooperatives and small businesses.

Minister of Industry and Trade Mohamad (Bob) Hasan stressed at the same media conference yesterday that all companies could distribute goods to the provinces. Goro will not get any special treatment from the government.

"Every company can become a distributor in the provinces like Goro as long as it is willing to develop its own warehouses," he said.

Minister of Information Muhammad Alwi Dahlan pointed out that Ginandjar's statement on Goro was the government's official stance. (prb)