Sat, 15 Sep 2001

Plan to appoint Laksamana IBRA chief opposed

JAKARTA (JP): Legislators expressed strong objections on Friday to the government's plan to appoint the State Minister for State Enterprises, Laksamana Sukardi, as chief of the Indonesian Bank Restructuring Agency (IBRA), saying the move would inhibit the privatization program and the sale of IBRA-held assets.

"If the state minister for state enterprises is also appointed as IBRA chief, the targets of both the privatization program and the sale of IBRA-held assets will not be met," said legislator Syamsul Balda of the Reform Faction.

"State Minister Laksamana already has so many problems that have to be resolved by the Office of the State Minister for State Enterprises, we should not be giving him extra work," said Faisal Baasir of the United Development Faction.

Rumors that Laksamana would be appointed IBRA chief surfaced almost immediately after President Megawati Soekarnoputri presented to the House of Representatives (DPR) the 2002 state budget targeting Rp 6.5 trillion (US$714 million) in proceeds from the privatization of state enterprises and Rp 42.8 trillion from the sale of IBRA-held assets.

Proponents argue that with Laksamana as IBRA chief, the privatization of state enterprises and the sale of IBRA assets could be expected to proceed smoothly.

But according to Syamsul, there is no guarantee that the privatization and IBRA asset-sale targets will be achieved if Laksamana holds the two positions concurrently.

"There will be conflicts of interest that could make it difficult for Laksamana to achieve the targets," he said without elaborating.

IBRA chief I Gde Ary Putu Suta told The Jakarta Post on Friday that he had not received any information about his replacement.

"I often meet with State Minister Laksamana and he has never said anything about my replacement," Putu said.

He said he was still in charge of the day-to-day operations of the powerful agency and submitted reports to State Minister Laksamana, Minister of Finance Boediono and Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti.

"Let Putu continue his work so that IBRA can meet its 2002 target," Syamsul said, adding that Putu had demonstrated a good track record and a high degree of professionalism.

"As state minister for state enterprises, Laksamana would have no time to sell off IBRA-held assets," said Golkar legislator Paskah Suzetta, adding that his faction would oppose any move to place IBRA under the Office of the State Minister for State Enterprises. (03)