Indonesian Political, Business & Finance News

State enterprises to give financial aid for KONI

| Source: JP

State enterprises to give financial aid for KONI

JAKARTA (JP): The National Sports Council (KONI) finally
received financial funding from State Minister of the Empowerment
of State Enterprises Tanri Abeng to finance not only the 20th
Southeast Asian (SEA) Games contingent, but also sports
development in general.

A memorandum of understanding was signed on Friday by Tanri
and KONI's chairman Wismoyo Arismunandar.

Tanri said after the signing that President B.J. Habibie
approved the arrangement and would issue a presidential decree
soon.

"Through a presidential decree, the contribution from state
enterprises' profits to the sports community will keep on going
in the future even if Indonesia has a new president and Cabinet
members," said Tanri, who is also chairman of the Indonesian
Tennis Association (Pelti).

A total of 159 state enterprises will allocate a portion of
their annual profits to sports development through KONI.

"But we have yet to decide on the percentage of the profits,"
he said.

State enterprises are expected to provide between 1 percent
and 5 percent of the profits to struggling and small businesses
under partnership programs established by Tanri's office.

Tanri said that state enterprises could promote their products
in any sports event as part of the partnership deals with KONI.

He was confident the cooperation could also boost profits of
the state enterprises.

"The contribution is sustainable. If state enterprises can
make larger profits from this deal, they will in return give a
greater contribution," he said.

KONI and the minister's office will invite public accountant
Tanubrata and Partners to audit their financial reports for
public disclosure.

SEA Games fund

KONI has received Rp 10 billion (US$1.5 million) in funding
from the National Development and Planning Board (Bappenas) and
the Gelora Senayan Management Board (BPGS).

Tanri hoped the deal could help financing athletes to the SEA
Games in Brunei Darussalam from Aug. 7 to Aug. 15. The fund to
cover the deficit for the Games preparation will be taken from
last year's profit.

"We'll help Pak Wis to cover the deficit. In return, I will
ask KONI chairman to back me up in case I am being defamed by the
public," he said with a laugh.

KONI treasurer, Setya Novanto, said the minister's office
would give around Rp 7 billion for the SEA Games budget.

"Previously we had asked for Rp 10 billion but Pak Tanri only
approved to hand over Rp 7 billion. Hopefully the money will be
disbursed next week," he said.

Wismoyo himself seemed very pleased with the deal, saying it
was time the government wanted to financially help sports
development.

"The government must help to fund sports development in the
country as it is a way to build national character. When our
sports have stepped into an industry, the government can stop
helping us financially and turn their attention to help the
business world," he said.(ivy)

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