Large firms reminded to help cooperatives

JAKARTA (JP): Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya warned large companies again yesterday to give a portion of their shares to cooperatives to help narrow the gap widening between large and small-business entities.

"I once again appeal to the large companies to fulfill their commitment to give a part of their shares to cooperatives," he said at a ceremony marking the official transfer of a small portion of shares of the publicly-listed PT Keramika Indonesia Assosiasi (KIA) to various cooperatives.

KIA, a tile producer, donated around 600,000 of its Rp 1,000- face value shares to 17 cooperatives in Jakarta.

Subiakto said that the distribution of shares to cooperatives will help to reduce existing social and financial gaps.

However, he complained that only few companies have followed the partnership plan initiated by President Soeharto several years ago to help alleviate society's financial inequities.

The cooperatives minister said that the number of large companies giving their shares to cooperatives has thus far reached a total of 185, mostly listed, companies. The number of shares distributed is roughly 80.9 million, with a market value of approximately Rp 160 billion (US$72.72 million), while the number of the recipients has reached a total of 1968 cooperatives.

He said that the distribution of shares to cooperatives should be considered a donation. Recipients are not allowed to sell their shares and Subiakto promised that his office would impose strong penalties on cooperatives found selling their shares to other parties or to existing shareholders.(hen)