Habibie supports asset distribution plan: Adi

Habibie supports asset distribution plan: Adi

JAKARTA (JP): Minister of Cooperatives and Small Enterprises
Adi Sasono said on Tuesday that President B.J. Habibie fully
supported the proposal to distribute the assets of conglomerates
and banks taken over by the government among small and medium-
sized enterprises (SMEs) and cooperatives.

"It's a policy which has been mentioned several times by
Habibie," he told reporters after addressing a seminar on the
redistribution of assets.

The minister said that assets would be distributed in a bid to
bridge the gap between the rich and poor which resulted from
decades of unfair governance.

He did not elaborate on how he planned to redistribute the
assets, but stressed that it should be done in accordance with
the existing law.

"This isn't some reckless, personal agenda to acquire other
people's assets unlawfully," he said.

He said the distribution would be conducted in accordance with
the terms of the new anti-monopoly bill which is currently being
deliberated by the House of Representatives (DPR).

The government put 24 banks under the supervision of the
Indonesian Banking Restructuring Agency (IBRA) after the banks
failed to repay massive liquidity loans provided by Bank
Indonesia. The shareholders of some of the banks have been forced
to surrender assets after failing to repay the loans.

Earlier this month, IBRA began to auction off non-core assets
confiscated from banks closed by the government in April and
August.

Adi said that asset distribution would bring a greater balance
to the distribution of wealth in the country.

Small-scale enterprises make up 99 percent of the 40 million
businesses registered in the country, but only control 12 percent
of the total national assets, he said, adding that the remaining
88 percent of assets were controlled by a handful of large
conglomerates.

"Narrowing the gap between small businesses and conglomerates
will surely improve the current political situation because it
will reduce unemployment, create job opportunities and reduce
poverty," he said.

However, economist Pande Radja Silalahi warned that the
proposal to distribute assets was dangerous and said that a
policy of charity would not resolve the country's economic
problems.

"The policy is not based on the right principle. The minister
is not Robin Hood. The people will not be able to live off
charity alone," Pande said.

He said the government should instead focus on developing the
human resources in small and medium-sized ventures because a lack
of the necessary managerial skills presented them with bigger
problems than a lack of capital.

Economist Umar Juoro said he supported the proposal to
redistribute assets, arguing that it was "politically acceptable
and economically sound".

IBRA Chairman Glenn S. Yusuf said last week that he had not
been informed of any plan to sell the assets of banks under
IBRA's care to cooperatives or small and medium-sized businesses.

"I've yet to see any statement from our minister saying that.
However, it's a noble idea to allow more Indonesians to enjoy the
fruits of growth in the country," he said.

The assets of banks under the agency's supervision are now
worth more than Rp 100 trillion, Glenn said.

During the rule of former president Soeharto, vast wealth
became concentrated in the hands of his closest friends and
family.

Soeharto initiated an abortive program designed to bring large
business groups into working agreements with cooperatives.

Under the program, cooperatives were given stakes in major
companies which they then paid for using dividends from the
shares. (das)