Govt told not to push privatization program
Govt told not to push privatization program
The Jakarta Post, Jakarta
Experts warned the government not to press ahead with its
privatization program without support from employees of the
state-owned enterprises (SOEs) and other stakeholders.
"The government has to be patient and must talk with all
stakeholders. Don't force it because it's very dangerous,"
senior economist Mubyarto said at a seminar on economy on
Wednesday.
He also warned that selling state assets to foreigners would
make the country's economy vulnerable to foreign interest.
Former finance minister Bambang Sudibyo concurred, saying that
the stakeholders had often been neglected by the government.
"The voice of the employees and the public in general must be
heard. This has been neglected by the government," he said.
Outspoken politician, Sri Bintang Pamungkas also opposed the
government privatization plan, saying that in SOEs had long been
treated as cash cow by the government to obtain money without
looking into hardship endured by the under-paid employees for
years to develop the SOEs.
"And now they're going to sell the SOEs to foreigners," he
said.
The government plans to privatize several SOEs this year in a
bid to help finance the 2002 state budget deficit estimated at
2.5 percent of gross domestic product.
According to a document prepared by the Office of the State
Minister of State Enterprises for the House of Representatives
Commission IX on financial affairs, the government expects to
raise between Rp 7.3 trillion and Rp 9.25 trillion from the sale
of six SOEs.
The figure includes expected proceeds of between Rp 4 trillion
to Rp 5 trillion from the sale of a 45 percent stake in the
publicly-listed international telecommunications operator PT
Indosat to foreigners.
The privatization proceeds in the current state budget is set
at Rp 6.5 trillion.
But the government privatization plan has recently met strong
opposition from various parties including employees. The labor
union of state-owned post and telecommunications companies, for
example, has planned to stage a strike which would affect
telecommunication services unless the government cancels the
planned sale of Indosat.
The employees fear they would lose their jobs if Indosat falls
into foreign control.
Meanwhile, State Minister of State Enterprises Laksamana
Sukardi, said on Wednesday that he planned to hold talks with
stakeholders including employees, and legislators to gain support
for the privatization program.
He did not elaborate.
Elsewhere, Bambang urged the government not to sell a
controlling stake in Indosat to foreigners because the company
was considered strategic to national security.