Big suppliers dominate state projects

JAKARTA (JP): Some large suppliers have capped large government projects, leaving small suppliers deprived, the Indonesian Suppliers and Distributors Association said yesterday.

The association's chairman, A. Pawennei, told the minister of industry and trade yesterday that most of its members did not have direct access to large state projects.

"Large state projects have been capped by certain large businesses which are reluctant to join our association," Pawennei said in his report to the minister of industry and trade.

Minister of Industry and Trade Tunky Ariwibowo said after the meeting with the association's executives that the government would take their complaints into consideration.

Pawennei suggested the government require state-agencies or state-owned firms to involve small suppliers in their purchasing.

He also complained that the government's policy that allowed foreign firms to distribute their products at wholesale level threatened their businesses.

And large local firms usually established their own distribution networks to market their products, he said.

"We hope the government will require local and foreign producers to cooperate with distribution firms to distribute their products to all parts of the country," Pawennei said.

He also said members had trouble getting bank loans even when they secured a contract to supply goods to state projects. (rid)