BCA divestment

BCA divestment

From Rakyat Merdeka

The BCA bank divestment will be detrimental to the country and could bring about protracted social problems. Hence, the policy should be reconsidered. Indonesia is premature in selling BCA. It is wise to postpone or cancel the divestment while waiting for the right time.

I believe that the divestment of BCA will result in bankruptcy. An economic and banking crisis that broke out at the beginning of 1998 was one of the factors that caused the national economic collapse.

The government has taken rescue measures in the banking sector, such as providing recapitalization funds and giving liquidity assistance, called Bank Indonesia Liquidity Support Loans (BLBI), to national banks, including to BCA.

As the biggest private national bank in Indonesia, with the majority stake in the hands of the government, BCA is currently still undergoing a revival and striving to strengthen its position in the national or even regional banking world.

While the bank is still struggling to improve its position, it is suddenly forced to go international only because the owner (the government) has decided to release its majority stake as part of the privatization program. However, the actual reason is the need of funds to offset the budget deficit which burdens the government.

Politicians, banking observers, community leaders, stakeholders and even BCA employees and customers have questioned this government's policy. Why should the government choose the BCA? Why should the BCA be released prematurely? The decision to sell the BCA has aroused a lot of controversy.

If this experiment with BCA is successful, other national assets worth a total of nearly Rp 470 trillion are ready for sale. But if the step is unsuccessful, the government will feel upset because of threats by the International Monetary Fund (IMF) that failure in privatization will cause this international monetary body to no longer help Indonesia overcome her economic and financial problems.

Is the government unaware that the IMF has dictated its policy? Some circles believe that the IMF's grand design is giving assistance to third world countries facing funds shortages but with the West's interests, which means colonialist interests, behind the assistance.

BIBIT GUNAWAN

Jakarta