Govt reviews privatization strategy
Berni K. Moestafa The Jakarta Post Jakarta
Stumbling in the sale of state enterprises, the government said on Tuesday it was reviewing its privatization strategy which is expected to come out early next year.
Coordinating Minister for the Economy Dorodjatun Kuntjoro- Jakti said a privatization policy team had already been set up and was now working on the new strategy.
"We want to work on it fast. Hopefully we can announce the results in early 2002," Dorodjatun said in a press briefing after a meeting between senior economic ministers.
"Once we have a road map (for privatization) and have the cooperation of the Ministry of Home Affairs, we'll be able to build a better platform to negotiate on without ignoring the aspirations in the regions," he explained.
Efforts in divesting the government's stake in state firms have often faced problems in the regions where the firms operate.
In some instances, resistance came from legislators who rejected selling natural resources based firms to foreign enterprises.
The most recent example being the planned sale of cement maker PT Semen Gresik, a holding company with a unit in Padang, West Sumatra.
Padang's political elite oppose the sale, arguing that Semen Gresik's unit, PT Semen Padang symbolizes the region's pride.
Some legislators joined the protest fearing Indonesia would lose control over its cement industry if it sold Semen Gresik to a foreign company.
Another example was the protracted dispute that followed the sale of a large oil palm plantation to a Malaysian company.
Again legislators raised antiforeign sentiment and moved to block the sale. The government was able to push ahead with the sale after lengthy debates with legislators.
Analysts on Monday said the problems that Indonesia's privatization program faced were common in other countries.
They cited the public's resistance to change, fear of lay-offs and corrupt management of state firms among the main reasons that have slowed governments' privatization programs.