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get Post May or June, '92
Page 9

Small enterprises not fully involved in exports

JAKARTA (JP): Government agencies and financial institutions in developing countries have failed to adequately promote the role of small and medium enterprises (SME) in export activities, said financial experts at a one-day international symposium here yesterday.
T.S.R Subramanian, a senior consultant at the Geneva-based International Trade Center, told the symposium that many governments in the region had established a network of SME institutions such as small industry boards, small industry corporations and SME training institutes, but these focused only on the domestic sector.
"In most countries, the range of advice and services available from the SME institutions does not include export orientation," Subranian told the symposium on export development and financing of small and medium enterprises held at the Horison Hotel.
He said the role of SME units in exports was consequently very small despite their substantial contribution to export earnings.
The symposium, attended by around 75 participants from the Asia and Pacific region, was held by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) in cooperation with the International Trade Center, a trade-promoting agency of the United Nations Conference on Trade and Development (UNCTAD) and Indonesian Development Bank (Bapindo).
Bapindo president Subekti Ismaun said most Indonesian SME still relied on large companies to export their products. "This is not only because of financial difficulties but also because of a lack of export management skills," he said.
Such dependence could only be lessened if small and medium companies were given sufficient export management skills, which could significantly help them to tap the export opportunities.
Indonesia's exports of handicrafts and products of small-scale industries increased by 40 percent to US$1.4 billion last year. This account for around 10 percent of the total non-oil export earnings of $14.75 billion in the first 10 months of last year. (hen)


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JKT Post Apr. 28, 92

More equal wealth distribution remains illusive after 25 years

JAKARTA (JP): Indonesia has made remarkable progress in the battle against poverty over the past 25 years but equal distribution of wealth remains elusive, a respected economist says.
The New Order government under President Soeharto has boosted income per capita from US$80 in 1966 to $550 at present, Professor Mubyarto said in a recent seminar in Yogyakarta.
"But only a small group of people have enjoyed the economic progress. The majority of the people in rural areas still live in poverty," Mubyarto was quoted by Antara as saying.
Mubyarto, from prestigious Gadjah Mada University and a former rector of the Yogyakarta institution, is renowned for his research on the rural economy and development.
Economic development success and the disparity in the distribution of wealth were also discussed at another seminar in Jakarta on Saturday.

Growing

Sayogyo, an expert at the state ministry for research and technology, predicted the Indonesian economy would continue growing and the number of people living below the poverty line would decrease.
The official data says some 27 million out of 180 million people in the country still live below the poverty line.
He said most Indonesians would continue to consider themselves poor because the gap between the rich and poor would remain wide despite the steady economic growth.
"To narrow the gap, the wealthy should develop a sense of solidarity and contribute to the efforts to eradicate poverty," he said in the seminar marking the 19th anniversary of the Indonesian Farmers Association (HKTI).
Sayogyo questioned the effectiveness of organizations to improve farmers'welfare because their programs lacked input from the farmers.
He suggested that the government allow farmers to develop their own initiatives in solving their problems.
The official lamented the loss of the traditional mediating institution which allowed farmers and village officials to discuss issues of land ownership.
The institution no longer functions because under the present administrative system it is the subdistrict head (camat) who has the authority to handle land affairs,Sayogyo said.
The demise of the traditional mediator has prompted farmers to refer their disputes over land ownership to the House of Representatives (DPR) rather than to local officials. 
(pan)