Large companies asked to help the smaller

SUKABUMI, West Java (JP): Minister of Finance Mar'ie Muhammad on Saturday called on large private companies to extend a helping hand to cooperatives and small enterprises.

"Please follow in the footsteps of state companies which have put aside small portions of their profits for the development of cooperatives and small businesses," Mar'ie said at the inauguration of the Education and Training Center for Integrated Farming Management.

Under a ministerial decree, state companies are required to earmark up to five percent of their after-tax profits to assist cooperatives and small enterprises.

Mar'ie stipulated that large companies would benefit from helping small enterprises and cooperatives.

"Usually what's in the mind of businessmen is how to get as much benefits possible. That's normal in doing business. However, I want to assure you that by helping small enterprises, you will help narrow the social gap and help alleviate poverty, two potential components which may cause instability," Mar'ie contended.

In addition to stability, Mar'ie said, poverty alleviation will improve the buying power of the people, and thus serve as a prospective market of "their products." It will also be easier for large companies to get qualified and productive laborers.

Partnership

The minister then asked all parties not to make large private companies their enemies, but their partners instead.

"We have to admit that only the larger businesses can help smaller ones. So, let's make them be the partners in a synergy," Mar'ie said at the ceremony which was attended by a number of businessmen.

At the same occasion, Mar'ie witnessed the signing of a cooperation agreement between the education and training center and seven private companies, including Indofood Sukses Makmur, which are committed to marketing agricultural products from farmers affiliated to the center.

The minister noted that efforts of alleviating poverty should especially focus on the agricultural sector, as 60 percent of the 25 million people living below the poverty line work in this sector.

He also asked all parties to pay more attention to the agricultural sector as more and more young people shun working as farmers. "It has been a saddening trend in the last decade."

The education and training center, set up by Bina Pembangunan Foundation and funded by 28 state companies, is expected to participate actively in alleviating poverty with educating and training selected farmers from all over the country.

Cost

According to Director General of State Enterprise Development Martiono, the establishment of the center has cost state companies Rp 600 million (US$275,000). "But it's only a small portion of their profits."

Martiono noted that up to now Rp 300 billion of the funds taken from state companies have been channeled to cooperatives and small enterprises throughout the country.

However, Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya said in his written address Saturday that a large portion of the funds are allocated to cooperatives and small businesses in Jakarta and West Java.

Martiono admitted that the uneven distribution of the funds is a result of the government's past policy of giving aid to those who are ready. "Now, we are designing a new way of distribution in line with the government's program of assisting least- developed villages." (rid)