Wed, 17 Sep 2003

Laksamana lambastes ludicrous lawmakers Rendi A. Witular The Jakarta Post Jakarta

State Minister for State Enterprises Laksamana Sukardi erupted in anger on Tuesday during a hearing with House of Representatives legislators, blaming them as the main culprits behind the government's failure to meet the privatization target and schedule.

"How can we work if you (the legislators) keep on wasting our time by asking insignificant questions, and ... quarreling with each other. With all due respect, I don't see any point to this hearing," said Laksamana.

Laksamana made the remarks during a hearing with the House of Representatives Commission IX for financial affairs on the progress of the privatization of state-owned companies.

Laksamana said that it was the House's complicated stance and inconsistency that stalled the privatization program.

"Now you go this way, then that way. There is uncertainty here. I feel like a ping pong ball when dealing with you guys. If you remain like this, the privatization process won't go ahead," Laksamana said.

Based on the existing laws, the privatization of state-owned companies should be approved by the House. But, the House only grants approval after long drawn out debates, which has forced the government delays and meant the disruption of the privatization schedule.

During the hearing, Laksamana asked for the lawmakers' approval for several state-owned firms, but the lawmakers just continued to ask questions, some of which had already been answered and others that had nothing to do with the subject. That went on until the end of the House's official working hours at 5:30 p.m.

The legislators then requested Laksamana to deliver his replies to those questions at the next hearing slated for October. That sparked an hour more of debate among legislators.

Laksamana interrupted the debate, saying he had no time to attend the next hearing just to deliver his answers to their questions.

He argued that the questions asked by the lawmakers were mostly not worthy of replying to because he had answered them in the past and that several questions were personal and had no relation to the privatization process.

The lawmakers were stunned at hearing Laksamana's statement, but surprisingly they did not try to argue further. The Commission then decided to postpone the hearing indefinitely.

According to Laksamana, there are currently 18 state-owned companies that the government failed to sell in 2001 and 2002, partly because of protracted debates at the House.

Among them are pharmaceutical companies PT Indofarma and PT Kimia Farma, shipmaker PT Dok Kodja Bahari, paper producer PT Kertas Padalarang and Soekarno-Hatta International airport operator PT Angkasa Pura II.

For this year, the government planned to privatize 10 companies: Bank Mandiri and Bank Rakyat Indonesia, gas distributor PT Perusahaan Gas Negara, construction companies PT Adhi Karya and PT Pembangunan Perumahan, and five construction consultant firms PT Indah Karya, PT Indra Karya, PT Virama Karya, PT Yodya Karya and PT Bina Karya.

The government also plans to sell minority stakes in several companies such as in cement producer PT Indocement, this year.

Laksamana said that, based on the state budget, the government hoped to raise about Rp 6.2 trillion (US$738 million) from privatization programs this year.

However, as of August, proceeds from privatization had only reached Rp 2.54 trillion, all from the sale of part of the government's stake in Bank Mandiri.