More talks with workers on privatization plan suggested<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
Labor experts warned that the government's privatization program
\nwould face serious challenges from workers' unions unless the
\ngovernment intensified its awareness campaign on the crucial
\npolicy.<\/p>\n
Bomer Pasaribu, a former manpower minister, criticized the
\ngovernment for limiting privatization talks in Cabinet meetings
\nwithout making significant attempts to discuss the matter with
\nthe workers of state-owned enterprises (SOEs).<\/p>\n
\"It is high time for the government to discuss the
\nprivatization program (with the workers),\" he told The Jakarta
\nPost.<\/p>\n
Chairman of the high-profile Indonesian Prosperity Trade Union
\n(SBSI) Muchtar Pakpahan concurred, saying the government had to
\nchange the old way of making privatization policy by also
\nlistening to the aspirations of the workers to gain support for
\nthe program.<\/p>\n
\"The political situation under the current reform era has
\nchanged; the government must realize that it can no longer decide
\nby itself,\" he told the Post.<\/p>\n
The comments followed demands on Monday from the labor union
\nrepresenting the workers of the state-owned post and
\ntelecommunications company (ISP Postel) for the government to
\npostpone the planned sale of shares in international
\ntelecommunications operator PT Indosat Tbk to foreign investors
\nthis year.<\/p>\n
The 100,000-member union said it would stage a massive strike
\nif the government decided to proceed with the plan.<\/p>\n
Such threats appears to be a rising trend among labor unions
\nopposed to the government's privatization plans. Workers fear
\nthat the program will lead to layoffs and cuts in benefits.<\/p>\n
Last year, the government was unable to sell a controlling
\nstake in cement maker PT Semen Gresik to Mexico's Cemex SA de CV
\ndue to protests from various parties, including employees.<\/p>\n
Last week's sale of the government's 51 percent stake in the
\ngiant Bank Central Asia (BCA) to a consortium led by U.S.-based
\ninvestment firm Farallon Capital also nearly collapsed when
\nthousands of the bank's employees held a strike to protest the
\ntransaction.<\/p>\n
The privatization program is important for the government, not
\nonly to raise cash to help finance the state budget deficit, but
\nalso to maintain support from international lenders and help
\nrevive investor confidence in the ailing economy.<\/p>\n
Meanwhile, State Minister for State Enterprises Laksamana
\nSukardi said on Tuesday that the government would push ahead with
\nthe privatization program, including the sale of Indosat shares,
\ndespite the protest.<\/p>\n
Speaking on the sidelines of a seminar in Hong Kong, Laksamana
\nsaid that he would talk with the ISP Postel labor union to
\nexplain to them the importance of the sale program, although he
\nacknowledged that should the threat be carried out, it could
\ncause a minor delay in the program.<\/p>\n
The government, which currently holds a 65 percent stake in
\npublicly-listed Indosat, plans to sell a further 15 percent stake
\nin the company in June via the stock market, and another 45
\npercent stake in October to a strategic investor.<\/p>\n
The Indosat sale is part of this year's privatization program,
\naiming to raise some Rp 6.5 trillion (about US$650 million).<\/p>\n
Some 24 SOEs had be listed to be privatized this year,
\nincluding Semen Gresik, pharmaceutical firms PT Indofarma and PT
\nKimia Farma, Indosat, coal mining company PT Tambang Batubara
\nBukit Asam, and Bank Mandiri.<\/p>\n
Separately, Vice President Hamzah Haz appealed to workers to
\nsupport the government's privatization program because of its
\nimportance to the state budget and the overall economy amid
\nlimited available options.<\/p>\n
\"We have to sell our assets ... to cover our debts as other
\nincomes, from tax and the mining industry, are somewhat
\nuncertain,\" Hamzah said in the opening speech of the first
\nnational seminar of the Indonesian Labor Union Confederation
\n(Gaspermindo) on Tuesday.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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