Singapore's Experience in SOEs Reform: Lesson Learned for Indonesia's Privatization

Abstract

Privatization has been perceived as a tool for restructuring State Owned Enterprises (SOEs) and the engine for an export earnings and economy growth. The two effects of privatization is cope with highly industrialization and economic efficiency for more than two decades. It started in Chile and British economy, and abruptly the jargon has spread across the world and penetrated for both countries, most notably developed and developing countries. However, privatization has pros and cons associated with its affects to debt burden and economic downturn in countries of South East Asia and South America during 1980’s and 1990’s. In some countries, privatization was a really important for easing twin-deficit – fiscal and current account deficit, while other countries with the absence of privatization has led a better economy growth. Singapore has successfully reformed the enterprises over the two last decades. Singapore’s success story with regard to SOEs reform seems to be a best-practice for Indonesian privatization framework.