Mon, 13 Jul 1998

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)