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)