Tycoons' commitment warmly welcomed

JAKARTA (JP): Last week's "Bali Declaration," in which business tycoons vowed to narrow the economic gap separating them from their smaller counterparts, has been warmly welcomed by politicians and observers, although many are anxious to see concrete follow-up.

Bambang Trihatmodjo, deputy chairman of the ruling Golkar party, who attended the Bali gathering which produced the declaration, said here yesterday that the declaration reflected the political will of Indonesia's largest business identities to form partnerships with small entrepreneurs.

"The declaration's objective is the good of all. Thus we should support it," Bambang said. "But we are waiting for the government's response and follow-up actions from the businessmen," he added.

In a similar vein, outspoken Minister of Transmigration Siswono Yudohusodo, while greeting the initiative, said that he preferred to see what the businessmen would do next.

"We have to wait for them to realize their agreement before we can judge their seriousness," he said, adding that people should not be doubtful nor suspicious about their intentions.

Chairman of the Indonesian Cooperatives Council Sri Edi- Swasono also said that there was no need to be skeptical about the declaration.

"But we should wait for its realization. It will be merely rhetoric if it is not implemented," he said.

The "Bali Declaration", announced last Sunday after a two-day meeting of leading Indonesian business figures in Jimbaran, Bali, consisted of seven points.

The declaration said that the success of national development depends on the active participation of all elements in society; that democracy, which should be encouraged through solidarity among all members of the business community, must be the basis of economic development, but that the government should also be more responsive and proactive in accommodating the needs of the business world; and that economic development should be based on Article 33 of the 1945 Constitution, which guarantees equal welfare for all.

The declaration also recognized that to overcome the challenges of development, a forum of dialog between the government and the private sector was necessary; that such a condition would prompt big businesses to be responsible for small and medium-sized businesses, in the long run reducing the wide economic gap between them; and that, to encourage their development, it was necessary to provide small and medium-sized businesses with sound support -- in the fields of human resources, capital, market access and information -- but that pampering them would, conversely, make them weak.

Meanwhile, businessman Sofyan Wanandi, who also took part in the 100-person gathering, said here yesterday that a task force would soon be established to follow up on the declaration.

Sofyan, who is the president of the Gemala group of companies, said the planned task force -- consisting of 15 to 20 business people -- would have an advisory board, with members such as Soedwikatmono, Soedarpo Sastrosatomo, Sudono Salim and Eka Tjipta Widjaja, and an executive board, comprised of younger businessmen, such as Bambang Trihatmodjo, Aburizal Bakrie, Anthony Salim and Prajogo Pangestu.

"Members of the executive board will be the ones who will actively carry out the group's actions," Sofyan said.

The task force's main duty will be to identify the steps which must be taken to narrow the gap between small and big business.

Sofyan said that a consultative meeting would soon be held to obtain input from the government, legislators and the media.

He stressed that business problems were "very complicated" and that, consequently, the public should not hope to see the Bali Declaration implemented soon.

"Be patient. We have to asses all the problems and make a priority scale of them," he said.

The task force, Sofyan said, would also meet with institutions which already have special programs aimed at strengthening small businesses through partnerships, to prevent the task force from overlapping with those programs.

Institutions which have already conducted partnership programs include the Indonesian Chamber of Commerce and Industry, through its Guarantee Fund; the Prasetiya Mulya Foundation (the 2000 Partnership Program) and the Ministry of Finance (the Venture Capital project).

Economist Didik J. Rachbini said that what was most important in the attempt to narrow the economic gap was that small businesses be encouraged to become involved in the network of big businesses, with the government providing them with sound support in that endeavor.

Didik, who is also the director of the Institute for the Development of Economics and Finance, said that big businesses should also open up their business streams to allow smaller players to enter.

Deputy Secretary-General of the Association of Indonesian Indigenous Businessmen Musni Umar, said that the biggest challenge to partnership programs between big businesses and their smaller counterparts was the poor managerial and financial abilities of small business.

He said that some 80 percent of the total number of small businesses in Indonesia were conducted by people of a low level of education.

Such problems, he said, could only be solved through training and education. (kod/swe/aks/pwn/imn)

Inequality -- Page 2