House rejects probe into Indosat sale
House rejects probe into Indosat sale
Kurniawan Hari, The Jakarta Post, Jakarta
The House of Representatives (DPR) on Friday voted against a
proposal to launch an investigation into the sale of the
government's 41.9 percent stake in state-owned telecommunications
company PT Indosat in December 2002.
Of 187 legislators attending the plenary meeting, only 36
voted for the investigation, 149 voted against the proposal, and
2 abstained.
The legislators, however, agreed that the Supreme Audit Agency
(BPK) should examine the sale process, which they said was "not
transparent".
"The plenary meeting agreed to discontinue the proposed
investigation. But, we also agreed to ask the Supreme Audit
Agency (BPK) to examine the sale of PT Indosat," House deputy
speaker Tosari Widjaja said after announcing the result of the
vote.
The controversies surrounding the sale of the state's majority
stake in Indosat emerged shortly after the government announced
that Singapore Technologies Telemedia (STT) had won the stake for
Rp 5.62 trillion (about US$634 million). The government now still
owns a 15 percent stake in the publicly-listed Indosat, with the
remainder in the hands of the investing public.
The proceeds were used to help finance the 2002 state budget
deficit.
A group of legislators, mostly from the National Awakening
Party (PKB) and the Reform factions, on Feb. 27 last year
proposed for a House inquiry into the sale.
Several of them also called for the resignation of State
Minister for State Enterprises Laksamana Sukardi who was
responsible for the sale.
Laksamana is an influential figure in the Indonesian
Democratic Party of Struggle (PDI-P), which is chaired by
President Megawati Soekarnoputri.
They argued that the sale had violated a number of laws and
the Constitution.
Explaining his motion, Rosyid Hidayat of the Reform faction
said that the sale of Indosat would allow STT to monopolize the
country's telecommunications sector.
Syaifullah Adnawi from the PKB added that the sale process
revealed some flaws and violations.
Defending the sale process, Indonesian Democratic Party of
Struggle (PDI-P) spokesman Soemaryoto said that allegations that
the sale violated the prevailing laws had been shown to be
baseless.
Soemaryoto added that the sale of Indosat as part of the
privatization program had been recommended by a decree of the
People's Consultative Assembly (MPR).
Besides, the government had consulted the House's Commission
IX for financial affairs and House Commission V for trade and
industry affairs before it carried out the sale.
"There is no reason for the House to reject the privatization
process," Soemaryoto added.
Apart from complaints from the legislators, the sale of
Indosat also prompted protests from the employees of the company.