Govt reviews privatization strategy<\/p>\n
Berni K. Moestafa
\nThe Jakarta Post
\nJakarta<\/p>\n
Stumbling in the sale of state enterprises, the government
\nsaid on Tuesday it was reviewing its privatization strategy which
\nis expected to come out early next year.<\/p>\n
Coordinating Minister for the Economy Dorodjatun Kuntjoro-
\nJakti said a privatization policy team had already been set up
\nand was now working on the new strategy.<\/p>\n
\"We want to work on it fast. Hopefully we can announce the
\nresults in early 2002,\" Dorodjatun said in a press briefing after
\na meeting between senior economic ministers.<\/p>\n
\"Once we have a road map (for privatization) and have the
\ncooperation of the Ministry of Home Affairs, we'll be able to
\nbuild a better platform to negotiate on without ignoring the
\naspirations in the regions,\" he explained.<\/p>\n
Efforts in divesting the government's stake in state firms
\nhave often faced problems in the regions where the firms operate.<\/p>\n
In some instances, resistance came from legislators who
\nrejected selling natural resources based firms to foreign
\nenterprises.<\/p>\n
The most recent example being the planned sale of cement maker
\nPT Semen Gresik, a holding company with a unit in Padang, West
\nSumatra.<\/p>\n
Padang's political elite oppose the sale, arguing that Semen
\nGresik's unit, PT Semen Padang symbolizes the region's pride.<\/p>\n
Some legislators joined the protest fearing Indonesia would
\nlose control over its cement industry if it sold Semen Gresik to
\na foreign company.<\/p>\n
Another example was the protracted dispute that followed the
\nsale of a large oil palm plantation to a Malaysian company.<\/p>\n
Again legislators raised antiforeign sentiment and moved to
\nblock the sale. The government was able to push ahead with the
\nsale after lengthy debates with legislators.<\/p>\n
Analysts on Monday said the problems that Indonesia's
\nprivatization program faced were common in other countries.<\/p>\n
They cited the public's resistance to change, fear of lay-offs
\nand corrupt management of state firms among the main reasons that
\nhave slowed governments' privatization programs.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-reviews-privatization-strategy-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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