Friday, December 14, 2007

Privatizing Merpati

The government is planning to privatize Merpati. Great.

3 comments:

gocleancorporate said...

I am not convinced Merpati would be better after privatized. There is a lot of private flight companies in Indonesia now; market is pretty competitive, but all companies is awful in delivering services.

We need more than privatization to make better market institution. One of the most important thing is that consumer's rights should be well protected, I guess...

dendi

Aco said...

Of course we need more than privatization to improve services. But that is a necessary stage. You sure don't think Merpati can not be improved from its present situation.

dendi said...

Yes, ownership may be an important variable in Indonesia due to highly political interventions. There is always chance that Merpati's financial performance would be better. But I am always thinking other things: what important variables to enforce not only financial performance but also 'other' performances (e.g. industrial performance or social 'performances'/ benefits), given socio-economic-political constraints in Indonesia.