Tue, 15 Jul 1997

Regional cooperative alliance called for

JAKARTA (JP): Coordinating Minister for Production and Distribution Hartarto urged yesterday for the establishment of a strong network between cooperative movements and small and medium businesses in the Asia-Pacific region.

Hartarto said such an alliance was necessary to strengthen the region's cooperatives and small and medium enterprises (SMEs).

"There is an urgent need to set up strategic alliances among the cooperatives and SMEs in the region, so that they can defend their domestic market share and use business opportunities arising from the global market," Hartarto told the Asia Pacific cooperatives and small and medium enterprises network conference.

He said he expected Indonesia would be able to form a strategic alliance, especially in the agricultural sector, with other participating countries in the two-day conference.

"The agricultural sector provides most of Indonesia's employment, and we are encouraging more development of agro- industries and agro-business," he said, but did not elaborate further on the cooperation.

The conference was organized by the Ministry of Cooperatives and Small Enterprises and supported by the United Nations Development Program and the Indonesia Business Cooperative in commemoration of the golden anniversary of Indonesia's Cooperative Day.

Delegates from 19 countries are attending the conference, which ends today. Eleven of the countries are members of the Asia Pacific Economic Cooperation (APEC) including Australia, the United States, Canada, Brunei, Singapore and Indonesia.

The remaining eight are non-APEC countries including Germany, Iran, Slovakia and Vietnam.

The minister of cooperatives and small enterprises, Subiakto Tjakrawerdaya, said yesterday after the meeting that he expected the conference would result in the establishment of a market information center for small and medium businesses and cooperatives.

Subiakto said the center would be a forum where small and medium enterprises and cooperatives in the Asia Pacific region could trade information on their products and business opportunities.

"The forum will help strengthen cooperatives and small and medium businesses in Asia Pacific," he said.

Hartarto said there were 48,391 cooperatives in the country last year, with a about 27 million people as members. He said small and medium enterprises contributed about 84 percent of employment in the country. (das)