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