Govt upbeat over 2002 privatization target

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.