Privatization of state enterprises

The State Minister of Investment and State Enterprises Development Mr. Rozy Munir told journalists that the target to raise about Rp 6,5 trillion in privatization proceeds this year is a very tough job (The Jakarta Post, April 27, 2000).

Nevertheless in a discussion which was broadcast by Radio Trijaya FM on May 2, 2000 he expressed his optimism to reach the target and he even said that he is prepared to step down if such target cannot be achieved.

The minister also said that eight state enterprises are to be privatized this year and PT Pupuk Kaltim would be one of the first.

As a pensioner of this company, I was astonished by the news because after PT Pupuk Kaltim entered the commercial phase several years ago, it has never sustained a loss. PT Pupuk Kaltim has given undeniable evidence that the company not only has been surviving but has made great profits from exports even though Indonesia is still facing economic turbulence. Nobody can deny the fact that PT Pupuk Kaltim is one of the productive profit making companies.

As a common person, I don't understand why, under the circumstances, PT Pupuk Kaltim has been selected by the government as one of the companies to be privatized this year. Anyhow, it is a policy of our government and we must be confident that it is in the best interests of the nation.

In order for the privatization of PT Pupuk Kaltim to be more effective, efficient, practical, advantageous and to avoid wasteful and bureaucratic procedure prior to the privatization, the Minister of Investment and State Enterprises Development should immediately arrange for a new Presidential Decree that will supersede place PT Pupuk Kaltim in its previous status where all shares are owned by the state.

Based on its performance as a productive profit making company, it is obvious that the privatization of PT Pupuk Kaltim will support achievement of the target of Rp 6.5 trillion from the privatization of state enterprises.

HASAN BASRI MUCHTAR

Jakarta