Privatisasi BUMN: Mengapa dan Beberapa Kunci Sukses

While most of theoretical and empirical assessments of privatization considered as a success, it remains widely and increasingly un popular, partly because of the perception that it is fundamentally unfair both in conception and execution. This article is a literature review of the debate over the ownership of public vis a vis private sectors both from micro and macro economic perspectives. We find that in the context of Indonesia the economic rationale for privatization is very compiling. Therefore, the main reason for a slow the privatization process is more political rather than economic. We then identify some key issues for a successful privatization. First, the design of privatization must be part of an integral economic policy aimed at achieving stability and sustainable growth. In this context, the opening the economy for foreign competion is of utmost importance; Privatization without increased international competition could lead to oligopolistic practices in th economy. This is particularly true for the sectors which have potential natural monopoly characteristic. For that case, adequate regulation should be put in place to insure an efficient pricing policy. The second key important issue is the design of privatization modes. These are particularly important to overcome political. From example the objection of nationalist group who consider privatization as “foreignization”. The reformist should be able to convince the public, that is privatization is an effective way for democratization of capital by allowing common people to own SOEs through capital market. Finally, the third key issue is the establishment of a simple and transparent privatization process. This issue has two important objectives by broadening participation and to ensure there no “new corruption practices” during the process of ownership transfer.