Private sector to set up consortium for SEA Games
Private sector to set up consortium for SEA Games
JAKARTA (JP): The government's plan to involve the private sector in financing the upcoming 19th Southeast Asian Games here in 1997 is getting closer to becoming a reality.
The National Sports Council's spokesman Ishadi SK told reporters yesterday, after an Idul Fitri gathering with sports organizations in the council's headquarters, that members of the private sector will set up a consortium to organize the sports event.
"I'm sure that private companies will set up a consortium to sponsor the SEA Games because we're talking about big bucks here," he said.
"If each company stood alone, I believe they wouldn't want to get involved," he added.
Ishadi said that the council will soon gather businesspeople to discuss sponsoring the event.
"I hope by the end of April, we'll be able to come forth with a draft on how the Games will be organized," he said.
In a ministerial meeting on Tuesday, the Minister of Youth Affairs and Sports Hayono Isman said that sponsor candidates will be announced in the next meeting on March 26.
Ishadi said international companies are also expected to take part in sponsoring the event.
"Sports equipment producers like Nike, or beverages producers like Coca Cola are expected to participate," he said.
"So far, Konika and Seiko have sponsored the SEA Games. We hope they will also take part in next year's event," he added.
On Wednesday, Hayono said after a meeting with President Soeharto that the private sector will take charge of all sponsorship-related activities, including promotions and advertisements.
The council's treasurer, Setya Novanto, mentioned eight incentives for members of the private sector to sponsor the SEA Games.
"The private sector will get receive advantages from souvenirs, tickets, commercials, broadcasting, sponsorships, stickers, accommodation and transportation," he said yesterday.
Ishadi expressed hope that private sector involvement would reduce the budget set by the Ministry of Youth Affairs and Sports.
"Although the private sector will take charge of all sponsorship-related activities, the government will still provide some of the budget," he said.
"For example, the government will finance the refurbishment of venues," he added.
Earlier, Hayono mentioned that Indonesia will need Rp 70 billion (US$30.5 million) to hold the event and to finance the national contingent's preparation.
Ishadi said that members of the private sector do not have to build a new athletes' village as stated earlier in the ministerial meeting of Tuesday.
"We'll observe the capacity of the nearest hotels here or we can probably restore the Pondok Gede Asrama Haji. But we must also think about transportation," he said.
"We have to consider which is cheaper, building a new athletes' village or providing transportation during the event," he added.
Model
Ishadi said that if Indonesia is successful in holding the SEA Games, it will be the first event sponsored by the private sector in the country.
"The SEA Games in Chiang Mai, Thailand, was also sponsored by the private sector there but they only financed about 30 percent of the total cost of organizing the event," he said.
Ishadi said the Thai government financed some of the last SEA Games. "But it also aimed at establishing Chiang Mai as the second capital of the country. It also aimed at realizing its ambition to host the upcoming Asian Games in 1998 and preparing itself to be picked as host of the Olympics," he said.
"If we can hold a successful SEA Games next year, we can provide a model of holding a big sports event with a limited budget provided by the private sector."
However, he added "The key for the idea is the media. If the media also spreads the idea, I believe that many companies will want to sponsor the event," he said. (05