MMI to allocate 5% of revenue for sports

MMI to allocate 5% of revenue for sports

Musthofid, The Jakarta Post, Jakarta

Metropolitan Magnum Indonesia (MMI), which is KONI's partner
in a planned sports fund-raising program, will earmark 5 percent
of its revenue for sports development, an official said.

While he was insistent that it would be purely door prizes
instead of gambling, Andi Baso, MMI's vice-chairman, said that
the program would begin in the second week of March and would be
expected to garner a rough projection of Rp 5 billion per week.

"We expect Rp 3 billion come from ticket sales and the rest
from sponsorships," Andi said during a press conference here on
Tuesday.

Speaking further about the details of the allocation of the
funds, Andi said that 40 percent of the revenue would be spent on
prizes and 36 percent for the operational costs.

The Ministry of Social Affairs will be entitled to 10 percent
in the form of tax deductions from the prizes.

The fund-raising campaign, which comes at time when the
National Sports Council (KONI) is in need of funds to run the
sports program, has drawn suspicion that it might be a form of
gambling which is prohibited in predominantly Muslim Indonesia.

Following KONI Chairman Agum Gumelar's defense of the program,
MMI also concurred, with Andi trying to convince people that it
would be purely door prizes.

"The prizes are not big. However, they aim to encourage people
to come to sports events, where they can expect some prizes,"
Andi said.

With at least a draw a week, MMI, which Andi said is a
franchise -- instead of the subsidiary of the Kuala Lumpur-based
Magnum Corporation Berhad -- will be looking to draw 52 times
throughout the year.

Andi said that the expected Rp 3 million from ticket sales
would be met with the prediction that about 150,000 people would
come to various sports events while the tickets are tagged at Rp
20,000 each on average.

Data of the tickets will be processed online in Jakarta with
the results all accessible to the public.

There will be 1,200 lucky winners with the prizes to be given
in the form TV sets, DVDs, refrigerators, as well as cash.

However, MMI appears desperate to convince people that the
program will run as smooth as expected given their lack of
coordination with the KONI-affiliated sports organizations.

While they are expecting to start in March, on Tuesday they
could not provide the details about what sports or what places
would be their first tournaments.

Meanwhile, KONI's secretary-general said that it was not
compulsory for the sports organizations to team up with MMI.