Govt urged to cater to indigenous entrepreneurs
Govt urged to cater to indigenous entrepreneurs
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
(Kadin) has urged the government to use the economic crisis as a
means to help indigenous businesspeople gain a bigger share of
the economy.
The chamber's chairman, Aburizal Bakrie, said yesterday the
government could use the crisis as a means to distribute bigger
and broader share ownerships of private businesses to indigenous
Indonesians.
"This is the perfect time to distribute the ownerships of
Indonesian companies to the pribumi (indigenous Indonesians)
fairly," Aburizal, known as Ical, told legislators at a House of
Representatives commission hearing.
Indonesians of Chinese descent account for some five million
of the country's 200 million people. The small community, which
controls most of the country's commerce and wealth, has often
become a target of social resentment.
Ical said such a move must be taken during the current
situation rather than after the country recovers or under a new
government.
"If we wait until the leadership changes, it could take about
20 to 25 years to achieve anything," he said.
He, however, did not elaborate on whether his proposal would
involve the sale of company shares owned by Chinese Indonesian
businesspeople at discounted prices.
Ical said the country needed to establish a new political
economic system which catered to native Indonesians.
He said he had recently introduced the idea to the dominant
Golkar faction and had received positive responses.
"What we need now is the political will of the people to
support this," he told House Commission V for manpower and trade.
"I hope other factions will agree with me on this idea so we
could establish a new (system under) the Broad Outlines of State
Policy which would favor us (indigenous Indonesians)," he said.
"As an institution Kadin has no power. That is why we ask for
the support of everyone through their political will," he said.
Ical said the government could begin with the finance sector,
for example, by acquiring the assets of banks which are still
solvent.
Such a move would help indigenous businesspeople acquire more
shares and increase company ownerships since the government has
guaranteed all depositors and debtors of private banks, he said.
With the new system, indigenous Indonesians could eventually
control at least 50 percent of the finance sector, which is now
dominated by the ethnic Chinese, he said.
Ical said the government could use funds belonging to certain
foundations -- such as pension funds which at present could
amount to Rp 20 trillion (US$2.1 billion) -- to finance the
program.
Companies seeking long-term loans from state banks, for
example, should be subject to a clause which required the
government to take over their shares if they could not pay their
debts, he said.
The government could then distribute the shares to indigenous
Indonesian businessmen, he said. (das)