Private firm enlisted to raise PON funds

Private firm enlisted to raise PON funds

JAKARTA (JP): A Rp 7 billion (US$3.1 million) deal with a
private firm to help finance next year's 14th National Games
(PON) was signed yesterday by Jakarta Governor Surjadi Soedirdja,
who is the Games' organizing committee chairman.

The deal obliges the firm, PT Citrahasa Promotama, to collect
funds by means of sponsorships, advertising, the sale of
broadcasting rights and other fund-raising activities such as the
sale of souvenirs and gala dinner tickets.

All these fund gathering activities are estimated to bring in
a gross income of Rp 10.75 billion, Rp 7 billion of which is
earmarked for financing the Games, a committee official said
yesterday.

The deal was in the form of a memorandum of understanding.

According to the memorandum, PT Citrahasta was chosen out of
13 companies invited to submit proposals, including private
television stations RCTI, SCTV and advertising house PT Inter
Admark.

Jakarta has hosted the quadrennial Games eight times since
1951. Jakarta was scheduled to host the Games for the ninth time
in 1997, but due to the general election the Games were
rescheduled to 1996.

Two years ago, the Games' organizing committee spent a total
of Rp 18 billion in hosting PON, Rp 2.5 billion of which was
garnered from fees on public services, another Rp 2.5 billion was
from the city budget, around Rp 5 billion was from the now
defunct government-sponsored lottery Sumbangan Dana Sosial
Berhadiah, and the rest was collected from the private sector.

In 1993, the committee spent most of the fund to finance the
reconstruction project of sport venues and half of the daily
expenses of more than 8,000 athletes and officials who took part
in the Games. (arf)