Big suppliers dominate state projects

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)