Young businessmen told not to rely on government

Young businessmen told not to rely on government

JAKARTA (JP): President Soeharto yesterday told members of the Indonesian Association of Young Business People (Hipmi) to reduce their dependence on government initiatives to gain instant success.

"The government's financial role in the country's economic development will continue to gradually decrease and Hipmi members should not depend so much on its projects," Hipmi chairman Bambang Atmanto Wiyogo quoted Soeharto as saying.

Bambang and six other Hipmi executives met Soeharto at the Bina Graha presidential office here to report the results of the association's recent congress and its new programs.

According to the government, Indonesia will need total investments of Rp 815 trillion (US$352.8 billion) in the current sixth five-year development plan period (1994-1999) in order to achieve an economic growth rate of about 7 percent per annum. Seventy per cent of the investments are expected to come from the private sector and the remaining 30 percent from the government.

Soeharto said that there are many business opportunities open to Hipmi members to participate in small businesses and the manufacture of components.

"Do not hesitate to make joint ventures with conglomerates and learn from the success stories of experienced businessmen," Soeharto told the association members, while citing the conglomerates owned by Sudwikatmono and Ibrahim Risjad as examples.

Bambang, a son of former Jakarta governor, Wiyogo Atmodarminto, acknowledged that Hipmi members usually did not usually obtain exclusive rights to obtain contracts from the government. The exceptions are a few people who run businesses in provinces and regencies.

Soeharto also suggested that Hipmi members involve themselves in agriculture and agroindustry. (kod)