Soeharto vows to boost cooperatives
JAKARTA (JP): President Soeharto pledged yesterday to promote cooperatives as one of the main pillars of the country's economy.
The President, quoting the Constitution, said the development of cooperatives was absolutely necessary to improve the welfare of the people.
He dismissed criticism that cooperatives would not be able to compete with the private sector in a tightly competitive world economy.
"Such doubt is baseless, other nations' experiences have proved that cooperatives can grow steadily, even in tough economic competition," Soeharto said in a speech at a ceremony in Senayan to commemorate the 50th anniversary of Indonesian cooperatives.
Addressing about 4,000 cooperative members, mostly farmers and fishermen from across the country, the President said the Constitution clearly stipulates that cooperatives are one of the country's economic pillars, in addition to state-owned enterprises and the private sector.
"We must continue efforts with patience and self-confidence to develop cooperatives to enable them to compete in modern society," Soeharto said.
At the ceremony, the Indonesian Cooperatives Council (DEKOPIN) gave the President the title Father of Cooperatives in appreciation of his extraordinary efforts in developing cooperatives over the last 30 years.
The President looked very moved and managed to contain his emotion when he received the title.
"Thank you for this award, I hope this award will not discourage me from living with and working for cooperatives," he said.
Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya said on Friday that cooperatives between 1993 and 1996 increased from 41,903 to 48,391 and members increased from 24.65 million to 27.17 million.
"Their total assets increased impressively from Rp 3.57 trillion to Rp 6.58 trillion (US$2.75 billion), while turnovers surged from Rp 9.5 trillion to Rp 12.58 trillion," Subiakto said.
In the ceremony, the President presented Satya Lencana Wirakarya awards to 61 people for their contributions in developing cooperatives.
The recipients included Governor of Aceh Syamsudin Mahmud, Governor of East Timor Abilio Jose Osorio Soares, vice president of Salim Group, Anthony Salim, and chief commissioner of PT Freeport Indonesia, James R. Moffet.
Soeharto took strong measures in 1990 when he invited the country's 30 richest conglomerates to his farm in Tapos, Bogor.
In the meeting, the President asked large companies in the country to sell a portion of their shares to cooperatives at nominal prices. The shares, according to the President, would be paid for by future dividends of the companies.
Soeharto said sales of big company shares was necessary to narrow the social and financial gaps of the rich and impoverished.
After yesterday's ceremony, Soeharto, accompanied by his eldest daughter Siti Hardiyanti Rukmana and his son Hutomo Mandala Putra and his wife, visited some stands at an exhibition organized by small cooperatives. (06)