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)