Jakarta – A powerful politician has expressed fears a privatisation programme will turn Indonesia into a "nation of coolies."
"With the government so easily selling off state-owned company shares to foreign parties, Bung Karno's [ex-president Sukarno's] fears about Indonesia becoming a nation of coolies may yet come true," Amien Rais, the chairman of the People's Consultative Assembly, said.
The privatisation programme, seen by international lenders as a key part of economic reforms, is already faltering amid opposition from some sections of the public.
Rais, quoted by the state Antara news agency late Wednesday, said selling all state-owned companies was unpatriotic, un-nationalistic and completely wrong. He said millions of hectares of palm-oil plantations in Sumatra were now owned by a Malaysian company and the situation would worsen if the government sold its 51-percent stake in PT Semen Gresik to Mexican cement company Cemex.
"I know and believe that if, one by one, the country's assets are sold to foreign parties, we will end up as a nation of coolies," Rais said, using the term referring to unskilled native labourers in East Asia. He said he would urge members of the House of Representatives (lower House) to stop the planned sale of Semen Gresik.
Last November the government, bowing to regional pressure, said it would only go ahead with a partial privatisation of Semen Gresik, the country's largest cement producer. But the announcement failed to mollify objectors.
The World Bank has warned Jakarta to overrule provincial government attempts to take over Semen Gresik's local affiliates or put its future asset sales at risk.
This year's budget envisages a deficit of 42.134 trillion rupiah, equivalent to 2.5 percent of gross domestic product. To help cover the shortfall, a privatisation programme is scheduled to contribute 3.952 trillion rupiah. Asset sales by the Indonesian Bank Restructuring Agency are to generate 19.548 trillion and the rest is due to come from foreign financing.
Among impending asset sales is that of Bank Central Asia, the country's largest private retail bank. An official of the bank's labour union, quoted by Thursday's Jakarta Post, said 80 percent of the employees would go on strike if the sale went ahead.
Leading bidders are British-based Standard Chartered and a consortium led by US investment firm Farallon Capital.