Govt upbeat over 2002 privatization target

The Jakarta Post, Jakarta

Despite facing tough challenges and a close deadline, the government expressed optimism that it would be able to meet the privatization target of Rp 3.9 trillion (US$438 million) this year.

"This is not a mission impossible," State Minister of State Enterprises Laksamana Sukardi told reporters on Wednesday on the sidelines of a ceremony.

He said that so far the government had collected some Rp 2.26 trillion in privatization proceeds, and additional proceeds were expected to come from the sale of shares in publicly listed telecommunications firm PT Indosat, and non-listed property firm PT Wisma Nusantara.

Laksamana, however, added that political support for the privatization program was crucial to ensure that the proceeds target could be achieved.

The privatization proceeds will be used to help reduce the state budget deficit.

For the past couple of years, the government has been facing difficulties in privatizing state-owned enterprises due to strong resistance from politicians, employees, various uncertainties in the country and the global economic slowdown.

The government initially set the 2002 privatization proceeds target at Rp 6.5 trillion, but it recently revised down the target to Rp 3.9 trillion due to the above various obstacles.

In each of the past two years, the government failed to meet the privatization proceeds target.

For next year, the government is targeting to raise some Rp 8 trillion from the privatization program.

Commenting on the higher proceeds target for next year, Laksamana said that it was not out of reach, so long as the world economy improved and there was strong public support.