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)