Wed, 27 Sep 1995

Speaking about collusion

For quite some time Indonesians have been exposed to the existence of collusion, monopoly and other practices which not only harm the community and the country but are also against the 1945 Constitution. There is indeed a basis for concern because big and strong businesses have emerged while small and medium businesses languish.

When receiving participants of the Third National Conference of the Fraternity of Small and Medium Entrepreneurs at his farm in Tapos, Bogor, on Sunday, President Soeharto had an explanation of the apparent root of the issue. According to the President, there was never any collusion between himself and Liem Sioe Liong that could have led to PT Bogasari Flour Mills and PT Indocement flourishing.

The President explained that at one time Liem Sioe Liong had come to him to ask for advice on what he could do since he wanted to work for the good of the people. The President reminded Liem that he should not merely think about doing business in order to gain profits, but build industries that were needed by the people, such as food industries. This reasoning led Liem to build a cement plant, as cement was needed in development efforts.

The President's words reveal a long-range strategy that takes into account the existing realities without deviating from the basic fraternity principle, manifested through a partnership mechanism. Our homework now is to develop that partnership mechanism in a way that small and medium-scale entrepreneurs will actually reap the benefits. In our view, considering the fact that ours is a country based on law, a legal foundation is needed in order that all parties involved may have a clear notion of what is required.

-- Suara Karya, Jakarta