Large firms reminded to help cooperatives

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)