Rp 268.74b for small businesses

JAKARTA (JP): The government will distribute Rp 268.74 billion (US$119.97 million), set aside from the after-tax profits of state-owned firms, to support the development of small businesses and cooperatives this year, a senior official said.

"The funds will be distributed to 23,332 small-scale businesses and 18,609 cooperatives in the country's 27 provinces," the directorate general of small enterprises, of the Ministry of Cooperatives and Small Enterprises, Anwar Supriadi, said as quoted by Antara on Saturday.

According to a decree issued by the Minister of Finance in 1989, state-owned companies are required to set aside one percent to five percent of their profits to help develop small-scale companies and cooperatives in the country.

"Every cooperative and company will receive about Rp 6 million each," Anwar said.

From 1989 to March 1995, the government collected a total of Rp 496.36 billion funds from state companies, of which 73.7 percent or Rp 367 billion has already been distributed to small businesses and cooperatives.

Anwar explained that Rp 135.68 billion or 37 percent of the distributed funds were given to 18,791 cooperatives and the other Rp 230.32 billion to 39,993 small-scale businesses. (31)