Indosat demonstrations will only hurt workers

Wimar Witoelar, Public Communication, Specialist, Jakarta

If PT Indonesia Satellite Corporation (Indosat) employees continue in their militant actions, the odds are that they will hurt themselves. If the Indosat share sale to Singapore Technologies Telemedia Pte. Ltd (STT) is canceled, employees will be the first victims of the ensuing crisis. If the divestment succeeds, employee activists will be marked as troublemakers. They might well be given negative marks in their files.

Politician Amien Rais and other politicians accuse government officials of getting illegal gains for themselves. State Minister for State Enterprises Laksamana Sukardi defends himself and issues a lawsuit. They may both be right, or they may be wrong. But both could profit from the Indosat sale, either financially or politically.

The losers are the employees who take part in the demonstrations. Militant action to "defend the nation's assets against foreign domination" are not in the interests of the employees. Protection of national assets, national security and the prevention of foreign domination are political issues. If the government is seen to neglect these duties, citizens should raise their voices politically. They can go to the legislature but should stay away from politicians with hidden agendas. Labor unions will not benefit from mobilizing thousands of workers on nationalist issues. They should, in fact, beware of the maneuvers of the political elite and state enterprise managements who are defending their vested interests.

In his article Privatization, the golden chariot with two horses, economist Faisal Basri writes, "In their journey to deliver precious crystals, the golden chariot of privatization will climb hills of vested interests. Employees, managers, suppliers and other stakeholders will worry about being cast aside as a result of privatization. They will oppose privatization strenuously for fear that they will not be able to enjoy the facilities of the past."

Faisal Basri continues: "It is quite possible that certain interest groups might do certain things such as provoking employees to conduct demonstrations. After the hills of vested interest, the golden chariot has to negotiate the sharp curves of xenophobia."

The issue of xenophobia appears also in the cases of Semen Gresik, PLN and other state enterprises. State enterprises need serious efforts to improve their performance. Privatization is one such effort. But privatization is obstructed by slogans attacking foreigners. The purpose of this obstruction is clearly linked to the interests of company officials who are now free to engage in corrupt practices.

It is quite possible that some cases of privatization are tainted with corruption. In the Indosat case, legislature members are doing the right thing in demanding accountability from government officials as regards alleged corruption. But there is no call for sweeping condemnation of the principle of privatization. Quite the contrary, state enterprises were always major victims of corruption before privatization moved in.

That does not mean that the government should be adamant in its position. It has stated they it not reconsider the Indosat sale of shares. "If we reverse this decision our name will be ruined," says Laksamana Sukardi. True, reputations must be preserved, but a closed attitude can be, in fact, counterproductive.

If the government is indeed innocent then it should show sincerity and the humility to be communicative. Government officials should be accessible to the media, analysts and the public. Sticking stubbornly to the law and formal decisions does not impress the public. The government has the duty to educate the public and it should not be arrogant. The public has a right to know.

With the smell of corruption in the air, transparency becomes extremely important. For instance, it would help if the government would explain that the Special Purpose Vehicle (SPV) is not a cover for kickbacks. The public is not clear on how the SPV entered the deal. There is compelling need for the government to provide information in a user-friendly format, keeping away from bureaucratic language.

The worst problem comes from politicians who pretend not to understand the need for privatization. They do not only sow discontent but also mislead the public. The legislature, which is supposed to empower the public, should not take people back to outdated notions of nationalism without common sense.

Actually, the political rhetoric of Amien Rais often conceals some truths. Take the line where he says that the sale of Indosat shares to foreign parties has serious and dangerous implications. That makes sense. The regrettable part is where he executes a logical jump to condemn privatization in its entirety. The evils of corruption are clearly undesirable, in this case an alleged commission to government officials and political party leaders. But privatization itself can and must be executed under principles of good governance.

Government officials and the House of Representatives members must change their behavior if they still want the respect of the public. This change is not possible without the pressure of the media and political groups.

Labor unions have their own important role in maintaining company productivity by improving the condition of workers. The negotiations between Indosat and STT actually came out with promises of better conditions for the workers. This is the time for workers to pressure the new Indosat/STT management about their commitment to the workers.

Should the demands regarding the workers' interests not be met, then the workers should stage mass protests. Not now, not when demonstrations only serve the vested interests of politicians. Workers who hope for better conditions may well be used and sacrificed.