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)