SOEs' labor unions rise to oppose privatization<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Just days after securing legislators' approval to sell 25
\nstate companies this year, the government has met new resistance
\nfrom a federation of state companies' labor unions opposing the
\nprivatization program.<\/p>\n
A group of 50 people claiming to represent State-Owned
\nEnterprises' Federation of Labor Unions (FSP-BUMN) demanded the
\ngovernment established a privatization law first before selling
\nstate companies.<\/p>\n
Without the law, \"FSP-BUMN rejects privatization and urges an
\nend to all efforts towards privatization,\" it said in a statement
\nissued on Thursday.<\/p>\n
A law on privatization is being drafted by the government.<\/p>\n
FSP-BUMN's protest comes after a government announcement that
\nit had secured political support from legislators to sell off the
\nstate companies.<\/p>\n
That would smooth efforts to raise Rp 6.5 trillion from the
\nsale of state companies, the proceeds of which will be used to
\nplug the state's budget deficit.<\/p>\n
Legislators' approval followed a series of closed-door
\nmeetings with the House of Representatives' Commission IX late
\nlast month.<\/p>\n
Commission IX, overseeing financial affairs, agreed on the
\nlist of state companies that the government intends to start
\nselling this year, according to a senior government official.<\/p>\n
Mahmuddin Yasin, the deputy to the State Minister of State
\nEnterprises, said the government had also secured the consent of
\nCommission V, which oversees state companies.<\/p>\n
\"At Commission V we agreed to the criteria of state companies
\nthat we may sell ... the list we presented Commission IX included
\ncompanies that fall in line with the criteria,\" Mahmuddin told
\nThe Jakarta Post.<\/p>\n
But intensifying labor protests against privatization, would
\nlikely test legislators' resolve to defend its decision to
\nsupport the government's privatization program.<\/p>\n
Among the list of companies to be sold is cement maker PT
\nSemen Gresik. Its planned sale last year ran aground amid massive
\nlabor protests rejecting foreign ownership.<\/p>\n
The government's failure to divest its 51 percent stake in
\nSemen Gresik to Mexico's cement company Cemex SA de CV dealt a
\nblow to efforts to attract foreign investment.<\/p>\n
For now, opposition against the sale has subdued, but mainly
\ndue to the government avoiding raising the issue in public.<\/p>\n
Another major sale drawing protests is that of international
\ncall operator PT Indosat, putting at risk a revenue of around Rp
\n4 trillion (about US$420 million) to Rp 5 trillion.<\/p>\n
State Minister for State Enterprises Laksamana Sukardi has
\nsaid Indosat's union had dropped their objections during a
\nmeeting with him on Tuesday. But his claim has yet to be
\nconfirmed by Indosat's labor union.<\/p>\n
Also unclear is whether Indosat's labor union has joined the
\nFSP-BUMN.<\/p>\n
A member of another organization, grouping labor unions of the
\nstate run post and telecommunication services, said the meeting
\nwith Laksamana did not mean the end of its protests.<\/p>\n
In its statement, FSP-BUMN urged for periodical dialogues
\nbetween the government and labor unions to seek common ground on
\nissues like privatization.<\/p>",
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