Legislators flex muscles in Indosat privatization polemic<\/p>\n
Kurniawan Hari, The Jakarta Post, Jakarta<\/p>\n
The House of Representatives (DPR) has gained the momentum to
\nsummon President Megawati Soekarnoputri over the mid-December
\nsale of the government's 41.9 percent stake in the state
\ntelecommunications firm PT Indosat to Singapore Technologies
\nTelemedia (STT).<\/p>\n
One of the initiators of the move to summon the President,
\nRosyid Hidayat of the Reform Faction, said on Friday that the
\nnumber of signatories had risen from 12 legislators at the
\nbeginning to 50.<\/p>\n
Although the number does not matter -- at least 10 signatories
\nare required to proceed with the motion -- the vigor with which
\nthe legislators are attempting to bring this economic issue into
\nthe full glare of a serious House hearing would appear to
\nindicate the emergence of further political bickering.<\/p>\n
However, such speculation was denied by legislator Achmad
\nMuqowam of the United Development Party (PPP) faction, who
\nclaimed that the motion was simply designed to seek transparency
\nin the divestment process.<\/p>\n
\"We don't want to create political bickering,\" Muqowwam told
\nThe Jakarta Post on Friday night.<\/p>\n
But, Muqowwam would seem to be ignoring increasing tension
\nbetween State Minister for State Enterprises Laksamana Sukardi
\nand People's Consultative Assembly (MPR) Speaker Amien Rais over
\nthe divestment process.<\/p>\n
Laksamana, who is the chief treasurer of Megawati's Indonesian
\nDemocratic Party of Struggle (PDI Perjuangan), and Amien, who is
\nthe chairman of the National Mandate Party (PAN), have been
\ninvolved in an acrimonious verbal dispute.<\/p>\n
Laksamana has even reported Amien to the police for refusing
\nto apologize for his statement in a weekly magazine that a
\nCabinet minister who always thinks of selling state assets is a
\nforeign agent.<\/p>\n
Given the fact that most of the initiators are members of the
\nNational Mandate Party (PAN), it is obvious that there is
\nincreasing tension emerging between the political parties ahead
\nof the 2004 general election.<\/p>\n
A previous power struggle in the House was evident in 2001
\nwhen then president Abdurrahman Wahid was ousted following a
\nsimilar motion over the alleged misuse of Rp 35 billion (US$3.8
\nmillion) in non-budgetary funds belonging to the State Logistics
\nAgency (Bulog).<\/p>\n
Besides the motion to summon the President, another group of
\nlegislators are planning to seek an explanation from Laksamana
\nover the sale of the government stake in the state firm.<\/p>\n
This second group is planning to question whether the presence
\nof foreign investors in PT Indosat could endanger the secrecy of
\ntelecommunications between state institutions.<\/p>\n
No less than Vice President Hamzah Haz has expressed support
\nfor the plan to summon Laksamana.<\/p>\n
\"The minister has to explain whether the sale would disturb
\nstate security,\" Hamzah, who is also the chairman of the PPP,
\nsaid.<\/p>\n
Some economists have said that from the economic point of view
\nthere was nothing wrong with the divestment of PT Indosat.<\/p>\n
Indonesian Corruption Watch (ICW) coordinator Teten Masduki
\nsaid there was nothing amiss about the divestment process.
\nHowever, Teten questioned the government's decision to sell its
\nstake in PT Indosat.<\/p>\n
The government gets Rp 5.62 trillion from the divestment. The
\nmoney will be used to help plug the 2002 state budget deficit.<\/p>\n
If the purpose was for state budget requirements, Teten said
\nit would be better for the government to force big-fish debtors
\nto repay their debts to the state.<\/p>\n
The total debts owed by the major debtors are estimated to
\nreach Rp 27.6 trillion, much more than the money raised from the
\ndivestment process.<\/p>",
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