Experts bemoan legislators' role in privatization

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.