Venture capital reflects economic democratization
Venture capital reflects economic democratization
JAKARTA (JP): Minister of Finance Mar'ie Muhammad said
Saturday that the establishment of venture capital companies is
one step in the important process of attaining democracy in the
economic field.
He said that the establishment of venture capital firms is an
actual reflection of the democratic process in the economic field
because the companies will not only provide financial aid to weak
firms but also facilitate a fair partnership between big and
small-scale business players.
Speaking in his address at the opening of PT Sarana Kalbar
Ventura, a venture capital firm in Pontianak, West Kalimantan,
the minister said that the establishment of such a business is
part of the government's strategic mission in helping financially
incapable firms.
"The people should not, therefore, doubt the government's
commitment in helping small-scale companies in the country," he
said in his address.
Mar'ie's remark was apparently made to counter an accusation
that the government's economic policy has been far deviated from
the economic principles in the country's legislation.
Economists said that business monopolies and other special
treatment given to certain groups of companies are a good example
of the deviation of the country's economic principles.
"The concept of the Indonesian economic development is based
on the active participation of the people, which is commonly
called the economic democratization," he said at the opening
ceremony of the new capital venture, which was also attended by
Minister of Cooperatives and Small Enterprises Subiakto
Tjakrawardaya.
According to Mar'ie, the government's commitment to help
financially-weak companies through various means, such as the
establishment of a capital venture, undoubtedly reflects the
process of the economic democratization.
The establishment of venture capital companies in provinces is
one of Mar'ie's important contributions in providing capital
access to small-scale companies, which are often rejected by
banks not merely due to their unviable business activities but
also due to their failure to provide sufficient collateral.
Since his appointment as finance minister two years ago,
Mar'ie has opened at least 12 venture capital firms, mostly
established under the sponsorship of the state-owned venture
capital company PT Bahana Artha Ventura.
The already operating venture capital firms include PT Sarana
Jabar Ventura in West Java, PT Sarana Sumut Ventura in North
Sumatra, PT Sarana Jatim Ventura in East Java, PT Sarana Yogya
Ventura in Yogyakarta, PT Sarana Jateng Ventura in Central Java,
PT Sarana Bali Ventura in Bali, PT Sarana Sumsel Ventura in South
Sumatra, PT Sarana Sumbar Ventura in West Sumatra, PT Sarana
Lampung Ventura in Lampung and PT Sarana Aceh Ventura in Aceh.
(hen)