Soeharto stresses business partnership

JAKARTA (JP): President Soeharto yesterday stressed the importance of partnerships between small and big companies to develop the industrial sector.

The President said big and small companies could not survive or develop fruitfully without helping each other.

Industrial development could only succeed if all its components joined hands, he said.

"Large companies often become more efficient if they have small and medium companies as their partners and raw material suppliers," he said while presenting Upakarti awards.

The awards were given to 67 individuals, institutions and companies that were considered outstanding in developing small companies and home industries.

The awards were also given to regents and mayors who were dedicated to developing small enterprises and home industries.

The President said the relationship between small and medium companies and their larger counterparts should be based on interdependency and mutual benefit.

"For this reason, it is only natural that large businesses which helped small and medium enterprises through partnership deals accept Upakarti awards as well," he said.

Soeharto said that in the First Five-Year Development Plan, which started in 1969, the industrial sector contributed only 10 percent to gross domestic product.

Last year the figure more than doubled to almost 25 percent.

"This means our economic structure is becoming stronger. The rapid development of the industrial sector is partly the result of the growth of small-scale and home industries across the country," he said.

In the last three years, more than 100,000 small enterprises have begun, providing jobs to almost 870,000 workers.

Small and home industries exported more than US$2 billion worth of products last year.

"What is more impressive is that some of these small industries have already obtained ISO 9000 certificates (for quality management)," Soeharto said.

He urged businessmen at yesterday's ceremony to make a detailed assessment of international agreements and commitments, such as those within the Association of Southeast Asian Nations, the Asia Pacific Economic Cooperation forum and the World Trade Organization.

"Assessments are needed so that businesses can use every opportunity in the market," he said.

"We have to know what the market wants and observe the industrial development of other countries which may become our competitors," he said. (pwn)