KONI gets Rp 1.5b from state enterprises

KONI gets Rp 1.5b from state enterprises

JAKARTA (JP): The National Sports Council (KONI) received
another Rp 1.5 billion (US$200,000) cash from state enterprises
to cover its expenses for the Olympic Games.

The KONI official in charge of planning and budgeting, Togi
Hutagaol, told reporters Thursday that the money was issued on
April 8.

"We still have another Rp 2 billion which will be handed over
after we make an accountability report on the existing Rp 1.5
billion," he said.

Former state minister for the empowerment of state
enterprises, Tanri Abeng, had promised to hand over Rp 7 billion
in cash.

About Rp 3.5 billion was used to send the national contingent
to compete in the 1999 Southeast Asian (SEA) Games in Brunei
Darussalam.

Togi said the fund would be used specifically to cover the
athletes' bonuses in life insurance.

"By estimating that we'll win two gold medals, two silvers and
a bronze in the Olympics, we provide Rp 3.25 billion for the
insurance. The gold medalist will pocket Rp 1 billion, the silver
medalist Rp 500 million and the bronze medalist will earn Rp 250
million."

"If our athletes fail to reach the objective, the rest of the
money will be used to prepare our athletes for the 2001 SEA Games
in Kuala Lumpur."

Regarding the government's promise to hand over a Rp 4.2
billion fund for the Olympics, Togi said he had received phone
calls from the Ministry of Finance saying that the ministry had
disbursed Rp 2 billion.

"But KONI has yet to receive the money. Perhaps it's in the
transfer process. We are still waiting for another Rp 2.2
billion, and I don't know when the government will hand it over
to us."

KONI has earned Rp 4.2 billion from the government, Rp 2
billion from the Gelora Senayan Management Board (BPGS), Rp 1
billion in goods from fast food firm McDonald's Indonesia,
$100,000 in cash and goods from PT Samsung Electronics Indonesia
and Rp 20 billion in life and accident insurance policies from PT
Asuransi Jiwa Manulife Indonesia -- which are worth a total of Rp
7.7 billion.

The council needs Rp 6.9 billion to groom athletes in a
centralized training center. It still has Rp 800 million to
provide the bonuses, but KONI needs Rp 2.45 billion more to
fulfill its bonus estimation.

Separately, KONI's head of business and sports industry
commission, Fritz E. Simanjuntak, told reporters that his
commission had to be independent to be able to raise funds for
sports development.

"The problem is KONI doesn't have competition events and
athletes. Both factors belong to sports organizations."

Fritz said KONI, as the facilitator of sports organizations,
needed to build its intangible capital and assets.

"Intangibility relates to the organization's reputation, which
is also linked to the reputations of its officials. It means
KONI's intangibility is built on communication, publication and
promotion. The council has to thank the media for all three
aspects."

Fritz emphasized that many proposals addressed to KONI only
suggested the raising of funds, not selling the sports
themselves.

"Some of them suggested earning money by taking a cut of our
taxes and toll fees. I don't call that fund raising."

"Businesses which are interested in investing their money in
sports are consumer-based industries like fast food and tobacco
and food products." (yan)