Probo rejects Bali Declaration

Probo rejects Bali Declaration

JAKARTA (JP): The coordinating board of 12 associations of
medium and small businesspeople rejected yesterday any direct
assistance from big businesses, urging the government to impose a
wealth tax of 2.5 percent instead.

"We hereby state our rejection of any direct assistance from
conglomerates," Probosutedjo, chairman of the board announced in
a statement issued as a reaction to the Bali Declaration of big
businesses late last month.

Probosutedjo said his organization was doubtful that the Bali
Declaration of Aug. 27 really reflected a strong commitment on the
part of conglomerates to helping develop small businesses.

He recalled similar commitments made by conglomerates in 1984
and 1990 which have yet to be realized.

The declaration, issued by 100 of Indonesia's largest
business groups, reaffirmed their commitment to redress the wide
inequity in the distribution of incomes and assets by enhancing
linkages between big, medium and small businesses.

The seven-point declaration, issued after a three-day
refresher course on the state ideology Pancasila, in Bali, also
reaffirms that democracy is the foundation of national
development, calls for talks between the government and the
business community, and reemphasizes the vital importance of
broad-based participation in the development process.

Probosutedjo, considered one of the most outspoken businessmen
in the country, contended that the government is obligated to
develop small businesses.

"The development of small firms should not be left to big
businessmen on a charity basis because most of those
conglomerates have yet to adopt the spirit of national unity,"
insisted Probosutedjo, who controls a widely-diversified business
group.

Probosutedjo said his organization therefore urges the
government to reimpose a 2.5 percent wealth tax.

The wealth tax was integrated into property tax in 1985, and
only covers land and buildings.

"Based on the estimated total wealth of Rp 280 trillion
(US$125.8 billion) owned by the 100 conglomerates, such a tax
will raise Rp 7.5 trillion a year which can be used to develop
small enterprises," Probosutedjo explained. (vin)