Partnership program ineffective: Analyst

Partnership program ineffective: Analyst

JAKARTA (JP): An economist has criticized the government's
policy of helping small companies, saying the existing
partnership program is ineffective.

Prof. Anwar Nasution of the University of Indonesia's School
of Economics said Thursday the government's policy to help the
small companies still relied too much on big companies.

"We can't leave such things entirely to business
conglomerates," he said to reporters on the sidelines of a
seminar on the empowerment of small entrepreneurs through
partnership programs.

Nasution said partnerships should be undertaken pragmatically,
based on the field of business and background of each partner.

"There are limits to a partnership and we can't expect every
big business to join hands with just any small business," he
said.

Nasution said several cases showed mismatches between small
and big businesses brought no benefit to either partner.

"We can't expect (state-owned steel manufacturer) Krakatau
Steel to assist a small krupuk (rice cracker) home-industry, even
if both are in the same town," he said.

Nasution said the government should do more through its
policies to ensure that businesses should not feel they are
coerced into partnerships.

"Partnerships are not a medicine that can cure every illness
-- although to a certain extent it can help improve the peoples'
income," he said yesterday.

Nasution said partnerships should always be beneficial to both
partners, but should never be considered a gesture of charity.

He said partnership programs, together with solid government
regulations, should also be able to provide more job
opportunities and strengthen Indonesia's role as an agricultural
country.

"Now, for example, we are still importing fruit. We have more
agricultural land than Singapore, yet the small country exports
more agricultural products than us. What is the Ministry of
Agriculture or the Ministry of Industry and Trade doing about
this?" he said.

Nasution said he suspected there was "something wrong" with
the way things were done in this country.

"We must find a solution. Maybe we have the wrong policies,"
he said.

He said a quick solution was needed because global free trade
was now closing in. He suggested the government synchronize its
policies because it was essential to allow Indonesia's
entrepreneurs and businesses to be competitive on an
international level.

"I think it's not that the system is not functioning. Actually
there is no system," he said. (pwn)