PT BA asked not to politicize privatization program

Non-government organizations in South Sumatera have warned the management of the state owned coal mining company PT Tambang Batubara Bukit Asam (PT BA) not to politicize the company?s privatization program, Media Indonesia reported Saturday.

During a socialization program held in Palembang on Friday, the chairman of the South Sumatra Youth Council, Syamsuddin Kunci, said that the privatization was laden with political interests of certain political parties in their efforts to win the 2004 election.

"I believe that the privatization of PT BA has been created for the interest of certain political parties. If it is true the South Sumatra Youth Council would strongly oppose the privatization," he said during the occasion which was also attended by PT BA?s president director Mahmub Iskandar.

PT BA which operates coal mining in Tanjung Enim, South Sumatra is of several state firms which will be privatized to raise funds to finance the government?s budget deficit. The company has received a green light from the government and legislators to launch initial public offering between October and November this year.

However, the company has not yet disclosed the percentage of the company?s shares that would be sold to the public in the privatization program which has been delayed for years due to opposition from the local residents and its workers.

The local people and its workers feared that the divestment of the government?s stake divestment in the coal mining company would cause massive layoffs and reduce the company?s community development commitment. (*)