Esia Flexi Merger Should Not Continue

"Landep News"

State Owned Enterprises Minister Mustafa Abubakar says that the proposed merger between two biggest CDMA provider in Indonesia, Esia and Flexi should not be forced if Telkom employee disagree.

“This merger is not initiated from the management and if it goes ahead there will be a massive restructuring take place. There should be a win-win solution for this problem. The state do not intervene in this matter,” said Mustafa in Pekanbaru, Friday (17/12/2010) morning.

SOE Minister Mustafa Abubakar

Mustafa said that this is not an anti corporation effort. He said if employees do not agree with the merger attempt, that it should not be done. Management should listen to their employees. “The management should socialize this, so any decision will be for the good of management and employees. There is no specific target in this case,” he said.

The Proposed merger between Esia which belongs to Bakrie group and Flexi owned by Telkom a state owned enterprise, is rejected by Telkom Workers Union. The union believes that if the merger moves ahead the company will be controlled by foreign companies.

“We ask the government and shareholders to hear the aspirations of employees who do not agree with the proposed merger. If the merger continues, the 20,000 employees of Telkom will be on strike,” said the Telkom Workers Union chairman Wisnu Wuryanto Adhi.

Wisnu said their rejection has been voiced many times. He believes the commissioners and directors has their own personal interest. “There’s a hidden agenda behind this merger plan. This is just another plan to sell state assets and at the end it will only harm the state. ” said Wishnu.

Telkom is scheduled to have its General Shareholder Meeting today (17/12/10). One of the agenda is to replaced its directors and commissioners. “We do not want to have boards that want to sell Telkom. There are already many state assets sold costing the state dearly such as Indosat and Karakatau Steel. This time we will not let it happen”, he added.

Telkom Workers Union held a demonstration yesterday carrying banners that says “Save Flexi, Flexi is State Asset, Do Not let it change hands”, “We are prepare for blood bath if the merger continues”, “No Merger and No Business with Bakrie Group”, and “Avoid Business with Bakrie Group”

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