Privatization lacks public support: Survey<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The government's crucial privatization program lacked public
\nsupport, a key element for the success of the program, according
\nto a survey conducted by the faculty of social and political
\nsciences at University of Indonesia.<\/p>\n
The survey revealed that 49 percent of respondents in Greater
\nJakarta opposed the privatization of state-owned enterprises
\n(SOEs), citing poor transparency in the sale process as one of
\nthe main reasons.<\/p>\n
\"Transparency has been a crucial problem for most respondents
\nin the privatization program of the state-owned companies,\" Sri
\nBudi Eko Wardhani, a researcher at the university, told reporters
\nduring the announcement of the survey result.<\/p>\n
The survey was carried out via telephone interviews from Feb.
\n28 to March 7, covering 1,033 respondents in Jakarta, Tangerang,
\nand Bekasi.<\/p>\n
The survey said that 43 percent of the respondents agreed with
\nprivatization, and 8 percent abstained.<\/p>\n
The government has listed some 24 SOEs to be privatized this
\nyear in a bid to raise some Rp 6.5 trillion (around US$650
\nmillion) in proceeds to help boost the 2002 state budget deficit.<\/p>\n
During the past two years, the government failed in all its
\nattempts to implement the privatization program partly due to
\nprotests from vested interest groups and anti-foreigner groups,
\nincluding employees of the SOEs and politicians. One prime
\nexample was the failure in the sale of cement company PT Semen
\nGresik last year to Mexico's cement giant Cemex SA de CV.<\/p>\n
Analysts said that without strong public support, it would be
\ndifficult for the government to carry out the privatization
\nprogram.<\/p>\n
But implementing the privatization program is crucial to help
\nrevive investor confidence in the economy and to maintain support
\nfrom the International Monetary Fund, which is providing billions
\nof dollars in bailout cash to the country.<\/p>\n
Experts also said that privatizing SOEs was a significant step
\ntoward rooting out corruption within the SOEs which had long been
\ntreated as cash cows for various vested interest groups including
\npoliticians.<\/p>\n
But a majority of respondents, 43 percent, did not believe
\nthat privatization would benefit the country due to concerns of
\nwidespread corruption regardless of who owns them.<\/p>\n
Some 52 percent of respondents believed that past
\nprivatization attempts had not been transparent.<\/p>\n
There was alleged manipulation and corruption in past
\nprivatization attempts under previous administrations.<\/p>\n
Some of the SOEs up for sale this year include Semen Gresik,
\npharmaceutical firms PT Indofarma and PT Kimia Farma,
\ntelecommunications firm PT Indosat, coal mining company PT
\nTambang Batubara Bukit Asam, airport operator PT Angkasa Pura II
\nand investment bank PT Danareksa.<\/p>\n
The government expects to raise Rp 3.5 trillion in the first
\nhalf of this year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/privatization-lacks-public-support-survey-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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