Indonesian Political, Business & Finance News

Fictitious projects

Fictitious projects

From Bisnis Indonesia

State Minister of National Development Planning and Chairman
of the National Development Planning Board (Bappenas), Kwik Kian
Gie, has said that the implementation of marked-up or fictitious
projects in various ministries, should offend the dignity of the
relevant ministers.

They should launch various strategies in order to prevent and
eliminate the corrupt practice that inflicts considerable losses
on the state.

Worse still, according to chairman of contractors association
Inkindo Kristya Kartika, most government agencies have ignored
Presidential Decree No. 18/2000 on guidelines for the procurement
of goods and services. In this way, their projects are realized
by directly appointing contractors without tenders, which has the
potential of creating a high-cost economy.

This practice can in fact be ended by applying the principle
of transparency. The chairman of the Indonesian Bank
Restructuring Agency (IBRA) can announce through the print media
the assets to be auctioned. Projects should also be announced by
mentioning the jobs offered, locations, requirements for eligible
contractors, tender dates and if necessary owners' estimate
prices to avoid excessive mark-ups.

Contractors will then be able to prepare themselves
individually or collectively in consortia to join such tenders
according to their capability.

WISDARMANTO GS, Jakarta

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