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.