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.