A minister for privatization

A minister for privatization

From Pikiran Rakyat

Chapter XIV, Article 33 of the 1945 Constitution stipulates the following:

1. The economy is arranged as a common enterprise based on the principle of family spirit, and thus such an enterprise should be in the form of cooperatives.

2. Production sectors which are significant for the state and primarily concern the welfare of society must be under the control of the state.

3. Only enterprises which do not concern the welfare of society can be left to the control of the private sector.

In relation to point number 2, it seems unwise to maintain the existence of the state companies including those in the provinces as, instead of contributing to the state and provincial coffers, they have merely become a burden to the nation and a source of corruption, collusion and nepotism.

Many state companies are not involved in vital and strategic businesses which actually must be handled by the private sector or cooperatives.

We all know that state enterprises are supposed to be able to support the national budget to finance our nation as well as regional developments. Their contributions are drawn from the profits gained, and not by putting aside the operational costs during a specific period. Sadly, the companies, more often than not, suffer losses during that period. This is evident from their growing debts which they are unable to pay.

Given this state of affairs, in an effort to make our economy healthy, the government should seriously consider privatizing state companies and putting greater emphasis on the need for intensifying cooperatives. So I suggest that the government appoint a State Minister of Privatization.

YUSUF R.

Tasikmalaya, West Java