Mar'ie inaugurates more capital ventures
Mar'ie inaugurates more capital ventures
JAKARTA (JP): Minister of Finance Mar'ie Muhammad inaugurated
three more capital ventures in Sumatra last week as part of the
government's program to promote assistance for financially weak
companies in the provinces.
The new capital ventures -- located in Padang of West Sumatra,
Palembang of South Sumatra and Bandar Lampung of Lampung -- have
increased the number of capital ventures established in Indonesia
since last year to 10. The first two were inaugurated on Friday
and the third on Saturday.
Mar'ie said the establishment of the capital ventures is one
of the government's important programs in helping small-scale
companies, which often face difficulties in raising loans from
banks and other financial institutions.
"We hope the establishment of capital ventures will become a
good solution for helping small-scale companies, which are often
considered unbankable," he said in his address at the opening of
the capital venture in Palembang.
PT Sarana Sumatra Selatan Ventura, the capital venture located
in Palembang, was established by local businessmen with a paid-up
capital of Rp 8 billion (US$3.6 million); PT Sarana Sumatra Barat
Ventura in Padang with Rp 4 billion; and PT Sarana Lampung
Ventura in Bandar Lampung with Rp 4 billion.
Mar'ie said that the establishment of capital ventures in
provinces is also an important breakthrough in encouraging
business activities in provinces.
He said that business activities are still centered in Jakarta
not only due to the lack of business opportunities but also due
to the lack of financial facilities for companies in other
provinces.
Circulation
"This is one of the reasons why about 80 percent of the money
supply in Indonesia circulates in the capital city," he said.
"This is also the reason why most important economic activities
are still controlled by large business groups."
The minister said the inequitable supply of money and the
imbalance in business activities should be minimized by giving
companies in provinces other than Jakarta better access to
financial facilities.
Creating more business opportunities for firms in those
provinces is also a prerequisite in bridging the gap between
business conglomerates and small-scale businesses, he said.
However, the minister warned, running capital ventures is as
risky as that of other financial institutions.
"Even in the United States, a country known for its success in
introducing the capital venture business, many capital ventures
have failed," he said. "The capital venture business should not
only be supported by professional management but also by the
loyalty of their partners."
The three new companies are, respectively, the eighth, ninth
and 10th capital ventures established since last year. The
already operating capital ventures include PT Sarana Jabar
Ventura in West Java, PT Sarana Sumut Ventura in North Sumatra,
PT Sarana Jatim Ventura in East Java, PT Sarana Yogya Ventura in
Yogyakarta, PT Sarana Jateng Ventura in Central Java and PT
Sarana Bali Ventura in Bali.
Their establishments were sponsored by the state-owned PT
Bahana Artha Ventura, which provided an equity of about Rp 1
billion to each of them.
In addition to the equity participation, Bahana also provides
technical assistance in financial management and in assessing the
feasibility of would-be partners.
Bambang Subianto, director general for financial institutions
at the Ministry of Finance, said that a number of provinces are
still preparing the establishment of their respective capital
ventures.
He said that five of the planned capital ventures, mostly
located in Kalimantan, will be officially inaugurated in the next
few months.(hen)