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)