Indonesian Political, Business & Finance News

KONI wants details of MMI-proposed fund program

| Source: JP

KONI wants details of MMI-proposed fund program

Zakki Hakim and Eva C. Komandjaja, The Jakarta Post, Jakarta

The National Sports Council (KONI) is awaiting a follow-up report
from PT Metropolitan Magnum Indonesia (MMI) on their partnership
in a controversial fund-raising scheme for national sporting
organizations.

"KONI is waiting to see what more they have to present for the
proposal," KONI's sports business and industry commission head,
Andhy Nena Wea, said on Wednesday.

He says MMI must provide further details of the program before
KONI signs the agreement.

MMI, a subsidiary of Malaysian gaming company Magnum
Corporation Berhad (MCB), has obtained a license from the
Ministry of Social Affairs to operate the program.

Many Muslims oppose the program because they say it is nothing
more than a form of gambling. However, Ruchadi, the ministry's
secretary-general, told The Jakarta Post on Wednesday that the
proposal by MMI was to raise funds through ticket sales for
sports games, with spectators to be rewarded in the form of a
lucky draw.

Ruchadi said the ministry had never received a proposal for
any form of number guessing game as described in local media
reports.

"We would not have endorsed the MMI proposal if it contained
any form of gambling such as number guessing.

"As long as the proposal does not violate any law and is not a
gambling game, we will grant them the license," Ruchadi said.

The fund-raising program is run in the form of gambling in
Malaysia, according to Andhy, who said he visited MCB's
headquarters in Kuala Lumpur in September after the MMI proposal
was forwarded to his office.

He said that KONI told MMI to modify the game into something
that would be acceptable to Indonesia's laws and culture.

He said that KONI would only follow up on the proposal if MMI
received the necessary licenses from the relevant institutions,
including the Ministry of Social Affairs and the Indonesian
Council of Ulemas (MUI).

Earlier, KONI secretary-general Djohar Arifin Husin said that
KONI and MMI signed a memorandum of understanding containing a
clause allowing the sports organization to cancel the deal should
the scheme contain any elements of gambling or anything else that
could harm KONI's reputation.

He confirmed that KONI had been promised to receive a fixed Rp
3 billion plus 10 percent royalty every month.

Separately, the Indonesian Council of Ulemas said it could not
issue a fatwa (Islamic religious edict) about the controversial
sports draw until it received more details.

The council's secretary-general, Din Syamsuddin, told the Post
the MUI had not received any details from KONI about the scheme
and therefore could not say whether it would oppose the draw.

However, he said that KONI or the Ministry of Social Affairs
should have discussed the draw with the MUI before signing any
agreements with MMI.

Masdar Mas'udi, an expert on Islamic law at the Nahdlatul
Ulama (NU) Muslim organization, told the Post that if the scheme
was a door prize game it would not be gambling, and therefore
not forbidden to Muslims.

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