Soeharto calls for more cooperatives

Soeharto calls for more cooperatives

JAKARTA (JP): President Soeharto yesterday called for the
country's large and medium scale firms to support the formation
and operation of employee cooperatives.

"Because it is obvious that cooperatives can enhance the
welfare of company employers, I call for big and medium scale
firms to form cooperatives with their employees," the President
said at the opening an annual seminar of the Association of
Employee Cooperatives (Inkopkar), at the State Palace yesterday.

"The government expects that, during the current Sixth Five
Year Development Plan (Repelita VI) period, a total of 11,000
employee cooperatives will be formed," Soeharto said.

The Repelita VI period started in April 1994.

The Indonesian government has been encouraging the creation of
cooperatives as a means to narrowing the gaps between rich and
poor.

"One evidence that cooperatives can enhance employees' welfare
is the fact that they can help finance the purchase of houses for
employees," said Soeharto.

Soeharto also said that, as of July, Inkopkar has built more
than 22,000 homes for its members.

"The enhancement of employees' welfare is essential in raising
their productivity, which is the key for firms to improve their
comparative advantage in the globalization era," he added.

The President also encouraged other agencies, including the
All Indonesian Trade Union (SPSI) and the Association of
Indonesian Employers (Apindo), to help Inkopkar in forming the
cooperatives.

He reminded that cooperatives are not political organizations
but business partnerships. (hdj)