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)