Analysts call for clear, accountable privatization plans<\/p>\n
JAKARTA (JP): The government should create action plans to
\nprivatize state firms and put them into a privatization bill to
\nmake them more accountable, analysts have said.<\/p>\n
Djisman S. Simandjuntak, executive director of the Prasetiya
\nMulya School of Management, told a seminar last week that the
\ngovernment currently does not have clear plans of how to
\nprivatize state firms.<\/p>\n
He suggested that ministers should draft transparent action
\nplans to give a clear direction to its current privatization
\nprogram.<\/p>\n
\"Considering the complications and wide implications of
\nprivatization, such action plans should be prepared to include as
\nmany stakeholders as possible,\" Djisman told the seminar, hosted
\nby the Management Institute of the University of Indonesia.<\/p>\n
Stakeholders should include employees of state firms, their
\npension funds, local administrations where state firms are
\nlocated, cooperatives they are nurturing and the surrounding
\ncommunity.<\/p>\n
\"Such comprehensive action plans should then be incorporated
\ninto a law, just like that on the state budget,\" he continued.<\/p>\n
He noted that with such a law, the privatization program will
\nbe more accountable although still allowing the government
\nflexibility over when to carry out the privatization of each
\nstate firm.<\/p>\n
Minister of Finance Mar'ie Muhammad has said that the
\ngovernment will take a number of measures to improve the
\nefficiency and competitiveness of state firms under a program to
\nprepare them for going public.<\/p>\n
Based on their business characteristics, Djisman noted that
\nall of some 180 state-owned companies are eligible to be
\nprivatized.<\/p>\n
The privatization of state firms can be done by selling some
\nor all of the government's shares in the firms to the public
\nthrough initial public offerings on stock markets or direct
\nplacements, Djisman noted.<\/p>\n
However, for state-owned enterprises which suffer chronic
\nlosses, it is better for the government to liquidate them, he
\nsuggested.<\/p>\n
\"Whatever approach is used, transparency and fair competition
\nshould always be maintained,\" Djisman said.<\/p>\n
The government revealed in December 1994 that out of some 180
\nstate firms, 47 were categorized as unhealthy. Of the 47 firms,
\n15 were suffering chronic losses.<\/p>\n
Monopoly<\/p>\n
Christianto Wibisono, chairman of the Indonesia Business Data
\nCenter, said at last week's seminar that the government should
\nfirst privatize state firms which hold monopolies on certain
\ncommodities, including cement, fertilizers and electricity.<\/p>\n
\"When talking about the privatization of state firms, the
\ngovernment should pursue it through an initial public offering of
\ntheir shares rather than through direct placement,\" Christianto
\nsaid.<\/p>\n
The government has so far privatized four state firms, cement
\nmanufacturer PT Semen Gresik, telecommunications firms PT Indosat
\nand PT Telkom and tin-mining firm PT Tambang Timah. The last
\nthree listed their shares on both foreign and local stock
\nexchanges.<\/p>\n
President of the Jakarta Stock Exchange Hasan Zein Machmud
\ntold the same seminar that at least 10 state-owned companies are
\nqualified to go public during the next two years.<\/p>\n
They are toll road operator PT Jasa Marga, PT Krakatau Steel,
\nBank Negara Indonesia 1946, PT Rajawali Musindo, fertilizer firms
\nPT Pupuk Sriwijaya and PT Pupuk Kaltim, coal-mining firm PT
\nTambang Batubara Bukit Asam, general-mining firm PT Aneka Tambang
\nand port operator PT Pelindo.<\/p>\n
The government has said that it will prioritize the first
\nthree companies to go public either this year or next year. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/analysts-call-for-clear-accountable-privatization-plans-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}