Legislators flex muscles in Indosat privatization polemic

Legislators flex muscles in Indosat privatization polemic

Kurniawan Hari, The Jakarta Post, Jakarta

The House of Representatives (DPR) has gained the momentum to
summon President Megawati Soekarnoputri over the mid-December
sale of the government's 41.9 percent stake in the state
telecommunications firm PT Indosat to Singapore Technologies
Telemedia (STT).

One of the initiators of the move to summon the President,
Rosyid Hidayat of the Reform Faction, said on Friday that the
number of signatories had risen from 12 legislators at the
beginning to 50.

Although the number does not matter -- at least 10 signatories
are required to proceed with the motion -- the vigor with which
the legislators are attempting to bring this economic issue into
the full glare of a serious House hearing would appear to
indicate the emergence of further political bickering.

However, such speculation was denied by legislator Achmad
Muqowam of the United Development Party (PPP) faction, who
claimed that the motion was simply designed to seek transparency
in the divestment process.

"We don't want to create political bickering," Muqowwam told
The Jakarta Post on Friday night.

But, Muqowwam would seem to be ignoring increasing tension
between State Minister for State Enterprises Laksamana Sukardi
and People's Consultative Assembly (MPR) Speaker Amien Rais over
the divestment process.

Laksamana, who is the chief treasurer of Megawati's Indonesian
Democratic Party of Struggle (PDI Perjuangan), and Amien, who is
the chairman of the National Mandate Party (PAN), have been
involved in an acrimonious verbal dispute.

Laksamana has even reported Amien to the police for refusing
to apologize for his statement in a weekly magazine that a
Cabinet minister who always thinks of selling state assets is a
foreign agent.

Given the fact that most of the initiators are members of the
National Mandate Party (PAN), it is obvious that there is
increasing tension emerging between the political parties ahead
of the 2004 general election.

A previous power struggle in the House was evident in 2001
when then president Abdurrahman Wahid was ousted following a
similar motion over the alleged misuse of Rp 35 billion (US$3.8
million) in non-budgetary funds belonging to the State Logistics
Agency (Bulog).

Besides the motion to summon the President, another group of
legislators are planning to seek an explanation from Laksamana
over the sale of the government stake in the state firm.

This second group is planning to question whether the presence
of foreign investors in PT Indosat could endanger the secrecy of
telecommunications between state institutions.

No less than Vice President Hamzah Haz has expressed support
for the plan to summon Laksamana.

"The minister has to explain whether the sale would disturb
state security," Hamzah, who is also the chairman of the PPP,
said.

Some economists have said that from the economic point of view
there was nothing wrong with the divestment of PT Indosat.

Indonesian Corruption Watch (ICW) coordinator Teten Masduki
said there was nothing amiss about the divestment process.
However, Teten questioned the government's decision to sell its
stake in PT Indosat.

The government gets Rp 5.62 trillion from the divestment. The
money will be used to help plug the 2002 state budget deficit.

If the purpose was for state budget requirements, Teten said
it would be better for the government to force big-fish debtors
to repay their debts to the state.

The total debts owed by the major debtors are estimated to
reach Rp 27.6 trillion, much more than the money raised from the
divestment process.