Government Targeting 36.000 Small Industries newly established by State-owned Government Enterprises

This subject was informed by the Secretary of State Minister of BUMN, Bacelius Ruru, after opening The Indo SME'S Expo 2003 in the Jakarta Convention Center (JCC)on Thursday, August 28. The mentioned establishment by BUMN, said Ruru, remained focusing in small industries, namely people economic activity having small scale asset with maximum of Rp 200 billion, excluding real property and business construction.

Business turnover as stated in the Act number 9, 1995, was not more than Rp 1 billion per year. This requirement, add Ruru, is related to the limitation of BUMN capability in obtaining profit. In addition, at present, with the asset of about Rp. 700 trillion, with the rate of return on equity ( ROE) merely three percents.

This reason, said Ruru, which pushed the government to continually strive for making healthy sectors of BUMN. The objective is to make BUMN able to book profit before tax which will be put aside by one up to three percents for partnership program and environmental establishment. Until the end of 2002, BUMN had distributed soft loan of amounting Rp. 2.87 trillion to about 355,000 units of small industry. Donating fund of Rp. 380 billion especially to support marketing, education, and improve the ability of small industry products which become the establishment partner of BUMN. Although the small industry getting aid from BUMN was only nine percent of 40 million units of small industry all over Indonesia.

Therefore, said Ruru, the partnership program cannot be evaluated only from the side of the amounted fund, but also the establishment partner as well. Nevertheless, the quality of establishment partner should have a prioritized attention. Beside the aid of financial capital, BUMN was also obliged to give technical guidance to enhance the partners’ skills, managerial aspects, product technology quality control, and standardization fulfillment. (ETA)
(Source : Kompas)