Small businesses and cooperatives

Small businesses and cooperatives

From Media Indonesia

Billions of rupiah from state-owned enterprises (BUMN) have been channeled in aid of small businesses and cooperatives for many years. We need to evaluate the effectiveness of the aid program. This must be responded to immediately.

We cannot let the program waste energy and resources, while its impact creates increasingly more collusion and corruption and abuse of authority.

I have a number of ideas which may not be scientific but which may serve as an input for decision makers.

1. Make an inventory of all small businesses and cooperatives which have received aid. How many among them have difficulties in returning the loans?

2. If there are many bad debts, a special team needs to study the causes. Beneficiaries of the loans may not have met the criteria. They may have obtained the loans through nepotism or collusion.

3. If the study shows that most of the aid is ineffective, its mechanism must be reviewed. If the loans have so far been given directly to the beneficiaries, it is advisable to have them channeled through a financial institution.

It is hoped aid is managed properly so as to give the maximum benefit to all. Many more people need the aid provided by the state-owned companies.

TOTONG HERIAWAN

Kuningan, West Java