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)