Jakarta – Employees of PT Indosat, a state-owned overseas call operator, threatened here on Monday to stage a strike later this week if the government does not cancel the recent sale of its stake in the company.

"If, by December 27, the government doesn't cancel the sale, we will go on strike indefinitely period," said Bahrun Syah, a member of the advisory council of the Indosat employees' union, as quoted by Dow Jones newswire.

Hundreds of Indosat employees held a protest at midday on Monday to express their opposition to the recent sale of a 41.9% stake in Indosat to Singapore Technologies Telemedia, arguing that the deal would "harm the country's security and economy." Indosat employs around 3,000 people across the country.

Earlier this month the government signed a deal to sell the stake to the Singapore company for over $600 million. It is one of the largest sales of an Indonesian asset to a foreign investor since the 1997-98 Asian financial crisis. After the deal, the Indonesian government will retain a 15% stake, down from 56.9% now.

The Indosat sale is part of the government's efforts to raise Rp 6.5 trillion this year to help finance the budget deficit, which is expected to be 2.5% of gross domestic product.

Last week, State Minister for State Enterprises Laksamana Sukardi denied on Friday that the government decision to divest its shares in the satellite telecommunications company was legally defective.