Government to explain LoI to DPR<\/p>\n
JAKARTA (JP): Economic ministers have offered to explain the
\ncontent of the newly signed Letter of Intent (LoI) to members of
\nthe House of Representatives (DPR), said legislator Zulfan
\nLindan.<\/p>\n
He said Coordinating Minister for the Economy Dorodjatun
\nKuntjoro-Jakti had requested a meeting with House Commission IX
\nfor financial and development planning affairs.<\/p>\n
"We have scheduled the meeting for September 5," said Zulfan
\nof the Indonesian Democratic Party of Struggle (PDI Perjuangan),
\nwhich President Megawati Soekarnoputri chairs.<\/p>\n
The government signed the LoI on Monday for the International
\nMonetary Fund (IMF). The LoI has won praise from economists and
\nfinancial analysts, but it has been condemned by lawmakers.<\/p>\n
Legislators are particularly irked by the government's
\ncommitment with the IMF to sell a 51 percent stake in publicly-
\nlisted Bank Central Asia (BCA), without consulting lawmakers as
\nwas required.<\/p>\n
Zulfan said the House would not allow the government to sell
\nits stake in BCA if the sale was solely based on technical
\nreasons, such as attracting a strategic partner.<\/p>\n
"There should be a guarantee that selling the 51 percent stake
\nin BCA will help revive the country's economy. Otherwise, the
\nHouse will oppose the planned divestment," he said.<\/p>\n
On Tuesday, legislators from the Golkar Party and United
\nDevelopment Party factions objected to the planned sale of a
\nmajority stake in BCA, saying that selling it at its current
\nprice would not yield a profit for the government.<\/p>\n
The government reached an agreement with the House last March
\nto sell a 40 percent stake in BCA through a secondary public
\noffering and private placement. While the secondary public
\noffering was done in July, the government decided to delay the
\nplanned private placement due to low bids that analysts
\nattributed to the small stake up for grabs. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-to-explain-loi-to-dpr-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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