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)