Soeharto raises specter of economic threats

Soeharto raises specter of economic threats

JAKARTA (JP): President Soeharto said yesterday Indonesia
could not maintain national unity if its economy was flawed.

Addressing about 350 people at the National Conference on
Cooperatives at the State Palace, Soeharto said that national
unity was not only a matter of politics, community and culture,
but also of economics.

Unequal economic growth and unfair wealth distribution were
among the major problems which could endanger the nation, he
said.

To empower people's economy, Soeharto said, the government was
committed to making cooperatives and small businesses strong
enough to participate in national development programs.

"We must continuously convince people that they can improve
their income and living conditions by joining cooperatives,"
Soeharto said.

But he said cooperatives had to overcome management problems
and improve their human resources.

"We must learn from our failures and not lose hope," he said.

The conference is one of the events held to celebrate the 50th
anniversary of national cooperatives.

The President hoped that cooperatives would grow quickly to
match the economic strength of state-owned and private companies.

Indonesian Cooperatives Council chairman Sri Mulyono
Herlambang said the two-day conference was being attended by
managers of cooperatives, government officials and academics. It
would discuss efforts to consolidate cooperatives, seek common
perceptions among members and draw up submissions for the next
Broad Guidelines of State Policies.

Minister of Cooperatives and Small Enterprises Subiakto
Tjakrawerdaya said the growth of cooperatives was very
encouraging.

"The number of cooperatives between 1993 and 1996 has
increased 15.5 percent from 41,903 to 48,391 and their
memberships have increased from 24.65 million people to 27.17
million," Subiakto told a press conference led by Minister of
Information R. Hartono at the Ministry of Information.

Subiakto said cooperatives' assets had increased impressively
from Rp 3.57 trillion to Rp 6.58 trillion, while their turnover
had increased from Rp 9.5 trillion to Rp 12.58 trillion.

"Cooperatives have been able to grow into a modern economic
institution," Subiakto said.

President Soeharto will attend today's commemoration of
Indonesia's 50th Cooperatives Day at the Senayan Eastern Parking
Lot. About 10,000 people, including farmers and members of
cooperatives from across the country, have been invited to attend
the ceremony.

Next Monday, Soeharto will open an international exhibition on
cooperatives involving 500 small enterprises and cooperatives,
including 18 foreign cooperatives.

"The President will also receive (today) an award as the
Patron of Cooperatives' Promoters," said Subiakto. (06)

Editorial -- Page 4