Small businesses, cooperatives urged to form consortiums
Small businesses, cooperatives urged to form consortiums
JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana said
yesterday his office will promote the establishment of
consortiums comprised of small enterprises and cooperatives to
handle projects for the state companies under its supervision.
"The plan is intended to give small enterprises and
cooperatives access to the development of various projects owned
by the state companies overseen by the Ministry of Mines and
Energy," Sudjana told reporters after a meeting with Minister of
Cooperatives and Small Enterprises Subiakto Tjakrawerdaya
yesterday.
Sudjana and Subiakto discussed the involvement of the Ministry
of Mines and Energy in the program for the promotion of small-
scale companies and cooperatives.
Sudjana said that his ministry has not yet detailed the
requirements on the establishment of consortiums, but he expects
that each planned consortium will be coordinated by a relatively
large company, which has a strong financial structure, as well as
access to expertise in certain fields.
"Through cooperation with big companies, the small enterprises
will be able to take advantage of the expertise, management and
financing of their larger partners in dealing with certain
projects," he said.
"Once such planned consortiums grow stronger, they will be
allowed to participate in bidding for large projects," he said.
He added that some of the state electricity company's
projects, such as those for power distribution and transmission,
could be tackled by small-scale companies.
Sudjana said he expects that his ministry and the companies it
supervises will start the establishment of the consortiums this
year.
Pilot project
Cooperatives minister Subiakto said that the establishment of
consortiums made up of small companies and cooperatives will be
introduced at other ministries as well.
"We expect that the planned consortiums under the management
of the Ministry of Mines and Energy will function as pilot
projects to be followed up by other ministries, especially those
which have large projects planned," he added.
The government requires all state companies to set aside up to
five percent of their after-tax profits to help small-scale
enterprises.
Sudjana reported that from 1990 to 1994, state companies
overseen by his ministry set aside a total of Rp 119.33 billion
(US$54.27 million), which will be used to support the development
of small businesses and cooperatives. Out of the funds, Rp 30.38
billion was collected from the state-owned oil company Pertamina;
Rp 69.64 billion from the state electricity company, PLN; Rp 6.58
billion from the tin mining company, PT Tambang Timah; Rp 3.79
billion from PT Aneka Tambang, a general mining firm; Rp 4.65
billion from the coal mining company, PT Tambang Batubara Bukit
Asam, and Rp 4.26 billion from PT National Gas Company.
"Of the total funds, Rp 105.54 billion has been distributed to
5,844 cooperatives and 15,108 small enterprises," Subiakto said.
(fhp)