Robert Go, Jakarta – Resistance from workers, leading politicians and labour leaders threatens to derail the Indonesian government's ambitious privatisation programme and slow down the recent positive turnaround for the economy.

Mr M. Subagya, an engineer at Indonesian communications giant PT Telkom, thinks the government's privatisation programme will bankrupt the country.

And yesterday, together with more than 600 workers from Telkom and other state-owned firms, he protested against Jakarta's plans to sell 25 firms before the year's end.

Sporting "Refuse Privatisation" headbands, they carried banners bearing slogans such as: "Privatisation loots the people" and "Are we willing to be colonised again?" Mr Subagya said: "The country cannot afford to continue selling assets. The government needs to think of the people's concerns." Demonstrations are still a dime a dozen in Indonesia.

But events focusing on State-owned Enterprises Minister Laksamana Sukardi's ambitious privatisation strategy are getting some attention from analysts, who warned the resistance threatens to derail or slow down the privatisation programme, and to halt the economy's recent positive progress. The demonstrating workers are not the only cause for concern.

Several leading politicians, including Dr Amien Rais, speaker of the People's Consultative Assembly, and Vice-President Hamzah Haz, have played nationalistic cards and indicated their support for anti-privatisation drives.

Last week, Dr Amien repeated warnings that Indonesia is selling too many assets to foreign investors, and at prices that were too low: "If the government continues this trend, I fear this country will go bankrupt soon."

Labour leaders, such as the head of the Indonesian Prosperity Trade Union, Mr Mukhtar Pakhpahan, and well-respected chairman of the Indonesian Workers' Struggle, Ms Dita Indah Sari, have also resisted privatisation.

Mr David Chang, president-director of brokerage DBS Vickers Ballas Indonesia, said anti-privatisation drives continue to have a negative impact on investor sentiment.

"The demonstrations, and the politicians and labour leaders who support them, dampen investor interest in this country. They definitely slow down privatisation, and could undermine the current positive momentum," he said.

Mr Laksamana's ministry is tasked with raising 6.5 trillion rupiah (S$1.3 billion) this year from selling state assets, but he has set his sights higher and projected potential revenues of up to 9.25 trillion rupiah.

Major assets slated for sale include airport-management firm PT Angkasa Pura, steel-manufacturer PT Krakatau Steel and communications companies Telkom and PT Indosat.