Questioning privatization now<\/p>\n
The Bali blast has weakened the financial markets in Indonesia
\nalthough in the last few days there has been a modest rebound.<\/p>\n
This situation has led to a question about the government's
\neconomic program such as privatization of state-owned enterprises
\nand bank divestment. When the financial market is weak, the
\nresult of this program will certainly be far from satisfactory.<\/p>\n
However, the government is faced with a dilemma. To go on with
\nthe program would mean a low yield (unfavorable price for
\nprivatized assets) while to postpone the program would lead to
\ndoubts about its commitment to reform.<\/p>\n
In such a situation, in which the investors' trust in our
\ngovernment is low, the government must do something to enhance
\nits credibility. Most important of all is that it seriously
\ninvestigates and solves the Bali bomb case and shows its strong
\ncommitment to eradicate terrorism by, for example, issuing a
\nregulation in lieu of a law against terrorism.<\/p>\n
If the restoration of security takes longer than expected, the
\ngovernment may postpone its economic program. The government must
\nnot sacrifice the long-term purpose of privatization for its
\nshort-term demand, such as covering the budget gap.<\/p>\n
It must be remembered that, given the fairly weak market, even
\nstrategic sales will benefit only the investors.<\/p>\n
-- Bisnis Indonesia<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/questioning-privatization-now-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }