More aid sought for small firms in eastern provices

AMBON, Maluku (JP): East Timor's governor, Abilio Jose Osorio Soares, called on the government and large businesses yesterday to provide more assistance to small firms and cooperatives in Indonesia's eastern provinces.

He said the government should give subsidized credit to small businesses in the region so they could grow rapidly and develop their own region.

"If companies in Java can get credit with an interest rate of 18 percent per annum, for instance, companies in eastern Indonesia should get something better, like 15 percent. Not even 15 percent, just 17 percent would be good," Soares said.

The governor was here to attend the first Australia-Indonesia Development Area (AIDA) ministerial meeting. AIDA is a sub- regional economic zone involving Australia and Indonesia's eastern provinces.

Soares said AIDA should help eastern Indonesian provinces tap their business potential and grow much faster and catch up to the level of development in Indonesia's western provinces.

But he warned that AIDA would not mean much if the central government did not give more assistance to local administrations and businesses.

Besides AIDA, Indonesia is involved in three other sub- regional growth areas.

These are the Indonesia-Malaysia-Singapore Growth Triangle, the Indonesia-Malaysia-Thailand Growth Triangle and the Brunei- Indonesia-Malaysia-the Philippines East ASEAN Growth Area.

The coordinating minister for production and distribution, Hartarto, promised the government would help local administrations and businesses provided they worked together to benefit from sub-regional economic zones.

"If local businesses feel incapable, they should form partnerships with stronger businesses from their neighboring provinces," Hartarto said.

Hartarto said local administrations needed to improve their efficiency and professionalism if there were to maximize the benefits sub-regional zones created.

"This is important because the role of local administrations is instrumental in developing local businesses," he said.

Soares also called on big businesses in Jakarta to venture into eastern provinces.

"They should not come in just for the sake of investing here but come and involve local people as partners," he said.

He cited the partnership formed by the president of PT Bakrie & Brothers, Tanri Abeng, with local East Timorese in general trading activities.

Soares promised his administration would do its best to help investors implement their investment projects in East Timor.

But he reminded investors to involve as many locals as possible.

"I always call on investors. Please, do not develop in East Timor, but develop East Timor," he said.

He said that despite political problems investment in East Timor was improving.

He said before the end of his term in September he would open three factories including a textile plant.

The Rp 3 billion (US$1.23 million) textile plant in Dili, owned by the Dili-based Heart Foundation, is being built by the Texmaco Group.

Texmaco will supply raw materials and help the factory market its products.

President Soeharto's youngest son, Hutomo Mandala Putra, would set up a sugar mill using local sugar cane, he said.

When asked about East Timor's political situation, Soares said: "Who said the East Timor problem has not been resolved? The United Nations? Let the United Nations continue to question East Timor, but we will continue to develop our region. (rid)