Military allowed to sell assets from business ventures
Military allowed to sell assets from business ventures
Tony Hotland, The Jakarta Post, Jakarta
The "clearance sale" of assets and properties belonging to
Indonesian Military (TNI) foundations and business ventures could
last for a month, the Minister of Defense says.
Juwono Sudarsono said on Wednesday the TNI would be allowed to
sell certain assets in business ventures before the government
officially took over other businesses under the new law.
"Before a presidential regulation is issued, changes of
ownership are not a problem as long as the procedures are in line
with the law, and the sales are approved by the Ministry of
Finance," Juwono told a hearing with the House of Representatives
Commission I here.
The presidential regulation will come into effect in early
November at the latest. The TNI is still collecting data on its
business ventures, although the defense ministry had set a Sept.
26 deadline for the military to complete the job.
Law No. 34/2004 on the Indonesian Military stipulates that the
government will acquire all the TNI businesses within five years
to create a more professional military that stays away from
business.
The legislation has prompted the quick sales of the TNI's
assets in some companies, although some believe that those assets
belong to the state and should not be sold privately.
The Navy has reportedly released its ownership of several
"unprofitable" companies, while the Army's Kartika Eka Pakci
Foundation has also sold its 11 percent stake in PT Artha Graha
to companies belonging to businessman Tomy Winata, who controls
the holding company.
Army-controlled Mandala Airlines is also now on offer, with
its sale allowed as long as it followed the law, Juwono said.
Mandala president commissioner Lt. Gen. Hadi Waluyo has hinted
he may offer the company to investors because it had suffered
losses in the last two years. The plan surfaced after a Mandala
plane crashed into a crowded residential area in Medan early this
month, killing 149 people.
Juwono could not, however, explain where the money acquired
from the sales of military assets would go. "We will review the
regulations in order to boost accountability," he said.
Defense ministry secretary general Lt. Gen. Sjafrie Sjamsuddin
said every process that did not follow legal procedures would be
a serious violation, but would not detail any sales he believed
were illegal.
Several House lawmakers urged the TNI on Wednesday not to sell
or transfer its assets to any other parties before the enactment
of the new military law.
"While not explicitly, the law suggests that the assets should
not be transferred until the regulation on which ventures will be
taken over by the government is issued. Such sales are against
the law," said Commission I deputy Effendi Choirie said.
Another commission member Ade Daud Nasution also criticized
the quick sales of businesses by military generals.
The defense ministry is working with the Office of State
Minister of State Enterprises, Ministry of Justice and Human
Rights and Ministry of Finance to set criteria on military
businesses -- either enterprises, foundations or cooperatives --
which will then be handed to the government.
The TNI has earlier said it wanted to keep the foundations and
cooperatives under its control to help improve soldiers' welfare,
arguing the government provided less than a half of its military
budget.