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