Tycoons and cooperatives

Tycoons and cooperatives

To ensure enterprises develop pursuant to Article 33 of the
Constitution of 1945 and the Law on Cooperatives, I suggest that
business tycoons consider the following options:

a. Establish limited-liability companies which will provide
permanent infrastructure such as buildings, factories, machinery,
fishing vessels, new estates and so forth;

b. Cooperatives can then lease this infrastructure from such
companies.

c. Money can also be lent to cooperatives as working capital and
the loan would be paid back with interest.

d. Cooperatives can also obtain soft loans, for working capital,
from banks and in this respect the government's assistance is
necessary;

e. Once the cooperatives are strong and enjoy profits from their
undertakings, they gradually purchase the infrastructures or they
may keep leasing;

The advantage for cooperatives is that they will pay income
tax only from the profits earned from the sales of goods and
services to non-members. Sales to members and non-members would
need to be accounted for separately.

Of course cooperatives must have a sound and professional
management. In this regard, the government is expected to help
develop the management of cooperatives. The government must also
provide some facilities in an integrated manner. In this regard,
Malaysia's Mara (People's Message) program is worth holding up as
a model as it has successfully promoted small-scale businesses
run by locals.

The development and growth of cooperatives in Indonesia must
be maintained as President Soeharto is regarded as the Father of
the Cooperatives Movement Mobilization. Business tycoons must be
obliged to team up with and support cooperatives. In this way
Pancasila and the 1945 Constitution will be applied instead of
receiving lip service. For example, a retail supermarket or an
industrial company may allow a cooperative to act in a managerial
role.

Mr. Probosoetedjo will you, ahead of others, set a concrete
example? Don't put small-scale entrepreneurs out of business
with, for example, the issuance of regulations which are not in
their favor and which allow big businessmen to gain complete
control. An example of this is the sea cargo forwarding business
and the transportation of containers for import and export.

SUHARSONO HADIKUSUMO

Jakarta