Indonesian Political, Business & Finance News

KONI gets 31 fund-raising proposals

| Source: JP

KONI gets 31 fund-raising proposals

JAKARTA (JP): The recent cancellation of a plan to raise funds
for sports through the sale of coupons has elicited a positive
response from the public, a National Sports Council official said
yesterday.

Sudharno, who is in charge of planning and budgetary matters
at the council, said he had received 31 new fund raising
proposals from the public since the government rejected the
council's scheme earlier this month.

"I have submitted the proposals to the council's deputy
chairman (Arie Sudewo) and he told me he would study them,"
Sudharno said.

The government said the earlier scheme proposed by the council
could tempt people to gamble because of the whopping prize money
it offered.

Among those who have submitted proposals were private
companies in West Sumatra, West Java, Lampung, South Kalimantan,
Bengkulu, East Java, South Sumatra, North Sumatra, Yogyakarta and
Jakarta.

"I have recommended that the council pick the proposal which I
think is the best," Sudharno said.

PT Elmy Prima Lestari general manager Jimmy Iskandar sent in a
proposal suggesting a joint venture between the council, state
insurance company PT Asuransi Umum Bumiputeramuda 1967, and state
toll road operator PT Jasa Marga.

Jimmy said, as quoted by Sudharno, that the council could get
Rp 35 from every ticket purchased by motorists using toll roads
throughout the country. With an average of 340 million vehicles
passing through toll gates every year, the council would earn
nearly Rp 12 billion annually.

Jimmy said that PT Jasa Marga had enjoyed a surplus of Rp 100
on every ticket sold since the government approved a price
increase in June 1996.

"For example, the government increased the price of traveling
on the city toll road to Rp 2,900, but rounded the price up to Rp
3,000. The difference goes into PT Jasa Marga's coffers," Jimmy
said.

Under the draft proposal PT Asuransi Umum Bumiputeramuda and
the council would share the difference. The insurance company is
included in the joint-venture because motorists using toll roads
do not currently have accident insurance. Only passengers on
public transport vehicles have insurance cover.

Sudharno said the council would give the proposal top priority
in the on-going discussion on how to raise funds for sports.

"Other proposals only go as far as to suggest that the council
collect money from the public, but without going into
satisfactory detail," Sudharno said. (yan)

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