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