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)