Krakatau Steel`s privatization could harm national interest, lawmaker says

Jakarta, NU Online
The government should cancel its plan to privatize state-owned steel company Krakatau Steel if the move means sacrificing the country`s ability to meet its defense needs, a legislator said.

"The privatization of the steel company should not harm the country`s interest, much less sacrifice the interest of the nation`s defense needs," Mutammimul Ula, a member of the House of Representatives (DPR`s) Commission I on defense affairs, said.<>

The lawmaker was commenting here on Monday on the government`s plan to privatize Krakatau Steel through the Ministry of State Enterprises.

"Almost all of the country`s main armament industries need iron ore as raw material. National metal industries have contributed a lot to the procurement of the nation`s main defense system equipment (Alutsista)," he said.

He said the government should show its commitment to empowering national defense industries, in this case Krakatau Steel as a state-owned strategic industry, to maximize its production capacity.

Being a strategic asset, Krakatau Steel should be maintained as it was the government`s mainstay to develop domestic defense industries, he said.

"We should not lose our strength as a state by letting foreigners take over all of our assets. Therefore, I want to stress once again that the government should cancel its plan to privatize Krakatau Steel," Ula was quoted by Antara as saying. (dar)