Tanri Abeng launches book

JAKARTA (JP): Former state minister for state enterprises Tanri Abeng (pictured above signing his book for a buyer) sees the privatization of state companies as essential for fueling economic recovery, not so much for the capital flowing in but more because of the market confidence resulting from the process.

"Foreign capital flowing through the sales of state enterprises is much more effective in building market confidence in the country than funds derived from loans from the World Bank or International Monetary Fund," Tanri noted on Saturday.

This was because capital coming in through privatization was private investment driven by market forces, while loan funds from multilateral institutions was based on a combination of political and diplomatic considerations and the government's compliance with the loan conditions, he added.

Tanri was speaking at the launching of his book entitled Indonesia Inc. which chronicles his experiences in restructuring more than 144 state companies between March, 1998 and October, 1999 under both the Soeharto and B.J. Habibie administrations.

The book, published by Time Academic Papers, tells of the problems he encountered in pushing through the reform of state companies amid the competing agendas of generating revenues for the state budget and laying the foundations for a more efficient and accountable public sector.

It also deals with the slippery path he trod in coping with the vested interest groups who fought to maintain the state companies as their cash cows.