Experts bemoan legislators' role in privatization

Berni K. Moestafa, The Jakarta Post, Jakarta

Experts called on legislators on Wednesday to refrain from meddling with state asset sales, saying it slowed down the government's privatization program at a time the country was in dire need of funds.

Senior economist M. Sadli said legislators oftentimes overstepped their rights when discussing asset sales with the government.

Imposing conditions on a planned divestment hinder the government's ability for decisive action, he said.

"Legislators should get their act together; there must be a concession on what constitutes a national priority," Sadli said prior to a discussion on privatization.

He said asset sales were a vital element in pushing the country's economic recovery. By law, the government is not obliged to secure the House's approval on privatizing firms.

But legislators now play an active role in deciding asset sales, slowing the process to the point of risking missing deadlines.

"The general complaint is that the DPR's (the House of Representatives) decision-making process is too complicated. It lacks discipline, everybody just talks as they please, and there is no accountability to it," he said.

Sadli said seeking the legislators' approval started out under former finance minister Bambang Sudibyo, as a way of securing political support.

"Now it has turned into a habit, and it will take political will to break it," he said.

Political observer Wimar Witoelar pointed out that many state firms were serving as cash cows for political parties.

This vested interest then translates into public campaigns against the sale of specific state firms, he explained.

"It's not enough to be right, you must also be perceived as being right," he said, calling this the "battle of perception".

American business consultant James Castle said the government and the legislators should agree on a set of guidelines for state asset sales.

Since privatization is financing the budget, legislators should voice their objections on specific assets sales before the budget is approved, he said.

"Everything else is up for sale. They (legislators) should only review the fairness and the transparency of the process," he said.