Six large firms sell 3.4m shares to cooperatives

JAKARTA (JP): Six private companies yesterday agreed to sell 3.4 million of their shares to 83 cooperatives in various parts of the country.

Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya said at a ceremony for the signing of the agreement that the government needs help from big companies to promote the development of cooperatives and small enterprises.

"It's the government's right to ask something from them as they become big due to facilities given by the government," Subiakto said.

The six selling companies are PT Dharmala Sakti Sejahtera with 1.6 million shares, PT Dharmindo Adhiduta with 360,000 shares, PT Berlian Laju Tanker with 71,000 shares, PT Citra Marga Nusaphala Persada with 1.2 million shares, PT Ooysindo Eka Perkasa with 90,000 shares and PT Asuransi Harapan Pratama with 60,000 shares.

Of the six companies, the first three are listed on the Jakarta Stock Exchange (JSX).

Siti Hardiyanti Rukmana, president of Citra Marga Nusaphala Persada, yesterday noted that the sale of shares to cooperatives is in response to President Soeharto's call in 1990 that big companies give attention and technical assistance to cooperatives.

Hardiyanti, also Soeharto's oldest daughter, emphasized that partnerships of large companies with cooperatives and small enterprises is necessary to spur the business of the smaller ones.

"Established entrepreneurs need to involve cooperatives and small enterprises in their business by forging partnerships or selling shares, not giving alms, to them," she said.

Cooperatives

Out of the 3.4 million shares, 40 percent were sold to employee cooperatives of six companies, 40 percent to village- unit cooperatives and the rest to cooperatives of civil-servants and members of the Armed Forces.

The shares were offered at a nominal value of Rp 1,000 (U.S. 46 cents) each, although the actual value on the JSX might be far higher.

"We hope that the cooperatives will not sell what has become their assets now, although the stock market offers a promising capital gain," Hardiyanti was quoted by Antara as saying.

According to Subiakto, the shares were purchased by the cooperatives on credit and can be paid off with 75 percent of the dividends they generate every year. However, when the companies don't garner profits the cooperatives are not required to pay.

When the companies profit, the cooperatives can use the other 25 percent of the dividends to strengthen their capital.

Since President Soeharto made an appeal to 200 conglomerate owners gathered in his Tapos ranch in West Java in 1990, there have been 175 companies selling 69.2 million shares to 1,711 cooperatives. (rid)