Kadin begins campaign to help indigenous businesses

Kadin begins campaign to help indigenous businesses

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
(Kadin) has begun a campaign to lobby for support from the
central bank, large conglomerates and the government to boost
small businesses owned by indigenous entrepreneurs.

"We cannot deny that, in spite of the government's efforts,
the gap between small businesses and conglomerates has
increased," Aburizal Bakrie, Kadin chairman and owner of the
Bakrie Group, told 800 participants of a seminar sponsored by the
Chamber of Commerce here yesterday.

Indonesia's largest corporations are predominantly controlled
by ethnic Chinese tycoons, who often have strong political and
financial support. The ethnic Chinese comprise about 3.7 percent
of Indonesia's 186 million population.

Kadin's seminar was held one day after Presidential Decree No.
16/1994 on the implementation of state budgets, which aims at
promoting small businesses and indigenous entrepreneurs, was
announced.

Aburizal, often fondly referred to as "Ical," aired his
support for the decree. "This is the right move for the
government," he said.

Definition

According to the decree, indigenous small- and medium-scale
enterprises are defined as those run by "indigenous Indonesians
and other ethnic groups which have integrated with indigenous
Indonesians."

The decree allows anyone who falls into that category to
participate in government projects worth no more than Rp 200
million (US$95,000). Prior to this ruling, those projects were
inaccessible to them.

Aburizal insisted that small- and medium-sized enterprises
need greater access to credit, markets and information.

"These must be made more accessible soon," he said.

The tycoon also said that lending procedures for indigenous
entrepreneurs must be relaxed, discounted rates must be offered
and Bank Indonesia -- the central bank -- must award credit
points to commercial banks that provide loans for them.

Aburizal also said that Kadin wants to set up a clearing house
that will channel loans, mainly those derived from the one-to-
five percent portion of state companies' net profits, to small-
and mid-sized enterprises.

He also stated that large conglomerates should finance this
clearing house on a voluntary basis. "We will not force them," he
said.

He also plans to deliver these ideas to the government,
including the central bank.

Aburizal said he is confident that the government will support
Kadin's campaign. (04)