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