State companies' aid to small firms: Rp 542b
State companies' aid to small firms: Rp 542b
JAKARTA (JP): State-owned companies have spent over Rp 541
billion (US$234.3 million) in the last five years to help small-
scale businesses and cooperatives, a minister said yesterday.
Minister for Cooperatives and Small-Scale Enterprises Subiakto
Tjakrawerdaya said here that around Rp 366 billion of the total
funds was distributed between 1990 and 1994 and the remainder of
Rp 175 billion in the period between June and December of last
year.
"We plan to distribute around Rp 72 billion in the remaining
two months of the 1995/1996 fiscal year," he told a hearing with
Commission VII of the House of Representatives (DPR).
The government requires state-owned companies, beginning early
1990, to set aside up to 5 percent of their after-tax profits to
help small-scale businesses and cooperatives.
The Ministry of Cooperatives and Small-scale Enterprises was
assigned last June to coordinate the distribution of the
financial aid, which was previously carried out by state-owned
companies.
The ministry has been also assigned to coordinate the
distribution of shares of the country's large and medium
companies to cooperatives. Unlike state-owned companies, big
private companies are required to sell at least 1 percent of
their shares to cooperatives at a nominal value, which can be
paid off in installments with the dividends accruing to the same
shares.
During the routine hearing with the commission, which is in
charge of finance, banking, trade and cooperatives, Subiakto
acknowledged that there are still many problems in the
distribution of financial aid.
"Many state-owned companies have not yet authorized their
local branches to deal with aid applications from small
businesses and cooperatives," he said, adding that many branches
of state-owned companies have no authority to supervise and guide
the business activities of the recipients.
Subiakto also said that his ministry expects to have a budget
of Rp 198.2 billion in 1996/1997, which begins in April. (hen)