Contractors or brokers?

Contractors or brokers?

From Koran Tempo

Three months ago, a transaction concerning the right to a toll road construction project was reported. According to Coordinating Minister for People's Welfare Jusuf Kalla, it was a normal transaction and the origin of the money was unknown.

The statement was made in connection with rumors that the funds derived from the scam at Bank Negara Indonesia went to two presidential aspirants of the Golkar Party. He also said he had sold all his shares in the company that had the right to build the road, in 1997.

Such a transaction is indeed common, but if a firm securing construction rights due to its financial and technical capacity later sells them on to another, is it not merely acting as a broker? Won't this be harmful to the economy, law enforcement and the feasibility of a construction accord?

The Indonesian Chamber of Commerce and Industry should warn its members against imitating this practice; the relevant agency, such as the road construction office, should determine whether this type of transaction can be justified. A question also arises on whether the relevant agreement allows for this type of sale.

TAUFIK KARMADI Jakarta