Bulog adopts competitive bidding system
Bulog adopts competitive bidding system
JAKARTA (JP): The State Logistics Agency (Bulog) has adopted a
competitive bidding system for the procurement of essential
foodstuffs from international markets, the agency's chief, Beddu
Amang, said here yesterday.
The first competitive bidding for the import of wheat flour
was opened yesterday, he said, adding that the agency would also
invite international tenders for the future import of other
commodities, including rice and soybeans.
Beddu hoped the open bidding system would allow the agency to
purchase commodities at the best price.
The agency previously used what it called a "silent
operations" policy, in which deals were done on a government-to-
government basis or between the Indonesian government and private
firms.
Beddu said the new program was fully supported by
international institutions, including the World Bank and the
United States government, through the training of its human
resources.
Bids will be directly supervised by the Supreme Audit Agency
(BPK) and the Development Finance Comptroller (BPKP) to ensure
full transparency in all transactions.
"The President has instructed us to conduct well organized
international bids for all imported commodities," Beddu said
after meeting with President B.J. Habibie at the Bina Graha
presidential office.
Beddu assured that the government would be consistent in its
implementation of the policy, though he acknowledged that some
problems needed to be resolved before the system would be ideal.
"Of course it won't run perfectly in the beginning."
Beddu also said the President would soon revise former
president Soeharto's decree which revoked Bulog's right to import
basic commodities except rice. The order was made as a part of
his agreement with the International Monetary Fund (IMF) in
January in exchange for a US$43 billion bailout package.
Beddu said the government's latest memorandum of understanding
with the IMF, signed late last month, would allow Bulog to help
the private sector import all basic commodities.
"In the commitment to the IMF, Bulog is obliged to distribute
and market basic commodities for social safety net purposes,"
Beddu said.
According to the memorandum, the government is to ensure that
sufficient amounts of essential foodstuffs are made available to
the market through Bulog. The government will also subsidize
rice, soybeans, sugar, wheat, flour, corn, soybeans, meat and
fish meat in an effort to stabilize market prices.
Beddu said the government would maintain its decision not to
subsidize wheat imports because it could no longer afford large
outlays for the sector.
"We will gradually abolish the subsidy," Beddu said. (prb)