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)