Indonesian Political, Business & Finance News

KONI to submit SEA Games account soon

KONI to submit SEA Games account soon

JAKARTA (JP): National Sports Council (KONI) chairman Wismoyo
Arismunandar said yesterday he would be accounting for the use of
Rp 18 million (US$7.8 million) by the Indonesian contingent for
the 18th Southeast Asian Games in Chiang Mai, Thailand, next
month.

The use of the SEA Games fund has become a somewhat thorny
issue for Wismoyo after Indonesia lost its overall SEA Games
title to Thailand, because almost all of the money came from the
country's top business circles.

"Next month I will summon all the donators and report to them
why we, despite the huge financial support we got, still could
not make it," Wismoyo told reporters at the Hotel Indonesia
yesterday, where he was opening the chess duel meet pitting
Indonesian grandmaster Utut Adianto against former world
challenger Nigel Short of England.

Host Thailand wound up the Games with a belting medals
collection of 157 golds, more than twice Indonesia's 77. It was
Indonesia's second defeat, and the worst ever, to Thailand after
its 1985 defeat in Bangkok.

Just a few months after taking KONI's top job in January,
former Army Chief of Staff Wismoyo scrambled to rake up money
needed to fund the national sports development. Winning the 18th
SEA Games was the prime target KONI wanted to fulfill this year.

Wismoyo received financial aid commitment from 50 business
tycoons in March. The business heavyweights disbursed aid for the
SEA Games. The funds were used to finance the national team's
preparations, including the overseas stints.

The government was a minor contributor to the SEA Games
project with just Rp 750 million.

Sports funds

As KONI might ponder how to secure funds to finance its money-
hungry programs, the Ministry of Youth Affairs and Sports on
Tuesday introduced a new fund-raising scheme called Jaspora.

It appeals to ad agencies to donate to the ministry 3 to 5
percent of the 20 to 40 percent discount they receive from the
media, which they normally return to the advertiser as they
already earn the agency fees of 15 to 18 percent.

Statistics show that the money spent on advertisements and
promotions in Indonesia last year reached Rp 2.28 trillion ($9.8
billion). Three to five percent of it would yield Rp 68.4 billion
to Rp 114 billion annually -- enough to fulfill the financial
demands for the country's sports development which KONI estimated
at Rp 300 billion annually.

According to the ministry, this scheme meets all the
ministry's fund-raising criteria.

Unlike the defunct state lottery SDSB, which used to finance
KONI's sports programs and the sending of Indonesian sports teams
abroad, it has nothing to do with lucky draws. The new sport
funding scheme is not aimed at the middle to low-income community
and the money is not directly drawn from the community.

What's more, it does not disturb the state budget, has found
favor with the Indonesian Council of Ulemas and is likely to get
approval from the House of Representatives. President Soeharto is
even scheduled to launch it in April.

Hence, the ministry has turned the procedure into a decree.
The decree appoints the ministry's foundation for the development
of youth and sports.

Wismoyo said yesterday he was not well informed about Jaspora
but welcomed it: "I believe the government will do its best to
help furthering sports in our country. I fully support the move."
(arf)

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