Indonesian Political, Business & Finance News

YLKI, MUI yet to approve KONI's fund-raising program

| Source: JP

YLKI, MUI yet to approve KONI's fund-raising program

JAKARTA (JP): The Indonesian Consumers Agency (YLKI) and the
Indonesian Ulemas Council (MUI) advised on Monday that they had
not given approval to the proposed fund raising program called
Damura (the People's Fund for Sports) as announced by the
National Sports Council (KONI).

A member of YLKI's executive board, Tini Hadad, said that the
agency has never received a proposal on Damura from PT Mutiara
Mandala Mahardhika (3M).

"We received some proposals from KONI but none of them is
about Damura. KONI has never consulted with us about the program.
Besides, YLKI is not KONI's appraisal team," she said in a
telephone interview.

"It doesn't mean that YLKI doesn't want to give suggestions,
but we would have hoped KONI had discussed the fund raising
program with us before making such an announcement."

Tini also urged both KONI and 3M to seek approval from the
House of Representatives.

"The program must get approval from the House. It will take,
at least, three weeks for the House to arrange its agenda to
discuss the matter."

Separately, MUI acting chairman, Amidhan, said that the
council has never issued an edict on the program.

"I think the company has yet to send the proposal to MUI's
edict commission. If it had, we would have discussed it. But I'm
certain that MUI has never issued an edict on the proposal," he
said.

KONI announced Friday that it had signed a memorandum of
understanding with PT 3M on the fund raising program for sports
development.

PT 3M will commence selling its 10-million coupons in April. A
Rp 5,000 (70 US cents) coupon comprises two parts; the first part
is an insurance policy coupon in cooperation with state-owned PT
Asuransi Jasindo worth up to Rp 2.5 million, and the second part
is the scratch-off coupon which gives consumers a chance to win
cash prizes ranging from Rp 5,000 up to Rp 25 million.

PT 3M general manager, Mutia Farida, said KONI would get 6.5
percent from each coupon selling.

Tini said she doubted PT 3M's assertion that the probability
of winning the cash prize is one in seven.

"The ratio is too close and we don't know about the coupons
distribution. Will the people outside Java have the same chance
to win a prize as the people here? Who will control the
distribution," she said.

Meanwhile Amidhan said he was unable to comment if the program
would encourage gambling, as it must be discussed in MUI's edict
commission.

"If the program includes a luck factor or winning and losing
factor, it might encourage gambling. If it also encourages people
to buy as many coupons as possible while the chance to win a
prize is slim, it will cause disputes among the people," he said.

Amidhan urged the government to pay attention to sports
development by including the development fund in the State
Budget. He also encouraged state enterprises and national
companies to contribute a small part of their profit for sports
development.

"KONI and sports organizations can also encourage organizers
to contribute their events profit to sports development," he
said. (yan)

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