State-owned companies to help small businesses affected by flood

Jakarta (ANTARA News) - State Minister for State-owned Companies Sugiharto said here Sunday he would formulate working capital assistance for small businesses that had been affected by recent floods in Jakarta, Bogor, Depok, Tangerang and Bekasi.

"We will formulate working capital assistance which could be given in the form of subsidy or without a colateral," he said on the sideline of a clean-up operation by state-owned companies.

He said priority would be given to small businessmen that could not continue their business activities after the recent floods.

The funds for it would be taken from the Environment and Partnership Program (PKBL) funds state-owned companies had so far allocated as part of their corporate social responsibility.

"Every state-owned company every year sets aside three percent of its profit for the PKBL. The funds are indeed for helping people like after recent floods and they will be given in the form of a grant," he said.

He said the capital assistance would be coupled with bank credits for small-scale businesses.

"In principles the state-owned companies have already had funds for those who need to rehabilitate their businesses," he said.

Asked how much that had been collected for the PKBL in 2006 the minister said it reached around Rp1 trillion because the state-owned companies` profit that year reached more than Rp42 trillion.

"I did not say that the Rp1 trillion would be for Jakarta and its environs only. We are now still counting the number of small businessmen that have been affected by the floods," he said.

Asked when the capital would be distributed he said he hoped it could be realized within a week or two weeks.

"The meeting on it happened only on Friday while the working day would only begin on Monday so we could only start formulating it that day. We think in two weeks` time people will start needing the money as now they are still busy cleaning up their residences," he said.