Indonesian Political, Business & Finance News

President reminds people of cooperatives mission

| Source: JP

President reminds people of cooperatives mission

JAKARTA (JP): Commemorating the 51st anniversary of the
country's Cooperatives Day, President B.J. Habibie reiterated
once again the theme that cooperatives are the country's economic
backbone.

Habibie said the development of cooperatives was not only
mandated by the Constitution but cooperatives themselves had
proved that they were much stronger in facing the economic crisis
than big private or even state companies.

"I make an appeal to all board members and operators of
cooperatives all over the country to make cooperatives a means in
turning the wheels of our national economy," Habibie said during
a ceremony at Merdeka Palace.

The ceremony was attended by Rahmi Hatta, wife of the
country's cooperatives founding father the late Muhammad Hatta,
who, along with Sukarno, proclaimed Indonesia's independence.

The 1945 Constitution stipulates cooperatives as the country's
main economic pillar, along with private and state enterprises.

However, the reality that has transpired is that due to
persistent poor management, cooperatives have been marginalized
by the country's economic structure.

"The reason cooperatives have not yet shown their true
important role in our nation's economic order has further
demonstrated the sheer magnitude of problems they face," Habibie
said.

About 500 cooperative members and street singers, and some
ministers, including Minister of Cooperatives, Small and Medium
Enterprises Adi Sasono, were present.

In his report to the President, Adi states cooperatives and
small businesses employ 90 percent of the country's labor force.

"During the (May) riots they did not flee abroad but stayed in
their country. They also love the rupiah and not the U.S.
dollar," Adi said.

Adi, a veteran non-government organization activist, said his
ministry would boost the partnership program between small
businesses, cooperatives and big companies or conglomerates.

"But cooperation must be based on equality and not just on
charity, where big companies act like Santa Claus," Adi remarked.

During the ceremony, the President also presented Satya
Lencana Pembangunan Awards to 40 individuals for their
extraordinary role in promoting the cooperatives' movement.

The recipients included Mubyarto, an economic professor who
has long campaigned for cooperatives, and P.M. Sitanggang, one of
the country's leading activists in promoting credit unions.

As in previous years, yesterday's ceremony saw large companies
presenting "donations" to small cooperatives.

The executive of the giant PT Indofood Sukses Makmur Tbk, Eva
Riyanti Hutapea, officially appointed the Confederation of
Primary Cooperatives, controlled by the Federation of Indonesian
Women Entrepreneurs Cooperatives, to distribute the company's
food and beverage products throughout the country. (prb)

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