Govt told not to push privatization program<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Experts warned the government not to press ahead with its
\nprivatization program without support from employees of the
\nstate-owned enterprises (SOEs) and other stakeholders.<\/p>\n
\"The government has to be patient and must talk with all
\nstakeholders. Don't force it because it's very dangerous,\"
\nsenior economist Mubyarto said at a seminar on economy on
\nWednesday.<\/p>\n
He also warned that selling state assets to foreigners would
\nmake the country's economy vulnerable to foreign interest.<\/p>\n
Former finance minister Bambang Sudibyo concurred, saying that
\nthe stakeholders had often been neglected by the government.<\/p>\n
\"The voice of the employees and the public in general must be
\nheard. This has been neglected by the government,\" he said.<\/p>\n
Outspoken politician, Sri Bintang Pamungkas also opposed the
\ngovernment privatization plan, saying that in SOEs had long been
\ntreated as cash cow by the government to obtain money without
\nlooking into hardship endured by the under-paid employees for
\nyears to develop the SOEs.<\/p>\n
\"And now they're going to sell the SOEs to foreigners,\" he
\nsaid.<\/p>\n
The government plans to privatize several SOEs this year in a
\nbid to help finance the 2002 state budget deficit estimated at
\n2.5 percent of gross domestic product.<\/p>\n
According to a document prepared by the Office of the State
\nMinister of State Enterprises for the House of Representatives
\nCommission IX on financial affairs, the government expects to
\nraise between Rp 7.3 trillion and Rp 9.25 trillion from the sale
\nof six SOEs.<\/p>\n
The figure includes expected proceeds of between Rp 4 trillion
\nto Rp 5 trillion from the sale of a 45 percent stake in the
\npublicly-listed international telecommunications operator PT
\nIndosat to foreigners.<\/p>\n
The privatization proceeds in the current state budget is set
\nat Rp 6.5 trillion.<\/p>\n
But the government privatization plan has recently met strong
\nopposition from various parties including employees. The labor
\nunion of state-owned post and telecommunications companies, for
\nexample, has planned to stage a strike which would affect
\ntelecommunication services unless the government cancels the
\nplanned sale of Indosat.<\/p>\n
The employees fear they would lose their jobs if Indosat falls
\ninto foreign control.<\/p>\n
Meanwhile, State Minister of State Enterprises Laksamana
\nSukardi, said on Wednesday that he planned to hold talks with
\nstakeholders including employees, and legislators to gain support
\nfor the privatization program.<\/p>\n
He did not elaborate.<\/p>\n
Elsewhere, Bambang urged the government not to sell a
\ncontrolling stake in Indosat to foreigners because the company
\nwas considered strategic to national security.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-told-not-to-push-privatization-program-1447893297",
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