Legislators set to investigate Indosat sale to foreign firm
Legislators set to investigate Indosat sale to foreign firm
Kurniawan Hari, The Jakarta Post, Jakarta
A total of 117 legislators submitted a petition on Friday urging
the House of Representatives (DPR) to exercise its investigative
powers to examine the sale of 41.9 percent of PT Indosat to
Singapore Technologies Telemedia Pte Ltd (STT).
In the petition, the legislators urged the House to set up a
special committee to study the controversy surrounding the
divestment of the government's shares in PT Indosat.
"This proposal will be discussed by the steering committee for
further action," House Speaker Akbar Tandjung said after
receiving the proposal.
He was accompanied by his deputies, Soetardjo Soerjogoeritno
of President Megawati Soekarnoputri's Indonesian Democratic Party
of Struggle (PDI Perjuangan), Tosari Widjaja of the United
Development Party (PPP), Muhaimin Iskandar of the National
Awakening Party (PKB), and A.M. Fatwa of the National Mandate
Party (PAN).
None of the signatories were from the PDI Perjuangan or the
Indonesian Military/Police factions.
PKB legislator Erman Suparno, on behalf of the signatories,
said that the sale of the 41.9 percent government stake in PT
Indosat to STT was a violation of People's Consultative Assembly
(MPR) decrees and other laws that required any divestment to be
made transparently and selectively.
He said that the legislators had never received explanations
about the divestment targets or mechanisms.
STT won the Indosat stake for Rp 5.62 trillion (about US$634
million) on Dec. 15. It was the largest single privatization deal
of last year. The proceeds were used to help finance the 2002
state budget deficit.
Data provided by the legislators showed that in June 2002, PT
Indosat acquired 100 percent of telecommunications operator PT
Satelindo for a total payment of Rp 11.5 trillion (US$ 1.3
billion).
After the purchase, PT Indosat injected $75 million into PT
Satelindo. The Satelindo stake was valued at Rp 13,000 per share.
By selling Indosat's stake at Rp 12,950 per share, the state
suffered potential losses of Rp 1.8 trillion.
"Our goal is to seek out the truth behind the transaction as
there have been protests from Indosat employees. We also want to
know the details of the transaction," Erman added.
Fellow legislator Rosyid Hidayat, meanwhile, said that the
legislators would require Rp 290 million (US$32,584) to finance
the formation of the special committee.
The money would be spent for snacks during meetings,
stationery, field visits and attendance fees.