KPU urged to summon alumina producers

KPU urged to summon alumina producers

Moch. N. Kurniawan, The Jakarta Post, Jakarta

A monopoly watchdog has called on the General Elections
Commission (KPU) to summon all alumunium producers that supply
raw materials to two consortiums producing ballot boxes to avoid
any pricing conspiracy.

"There is a need to make a gentlemen agreement among aluminium
producers to avoid unnecessary hike in aluminium price.

"Such an agreement will also prevent those aluminium producers
from blaming each others if any problems emerge," Monopoly Watch
chairman Samuel Nitisaputra said on Sunday.

In the absence of pricing conspiracy, KPU would manage to
estimate accurately the production capacity, distribution and
price of aluminum offered to the two consortiums, he added.

KPU has controversially named PT Tjakrindo Mas which finished
second behind bid winner PT Survindo Indah Prestasi to take 40
percent of 2.19 million boxes given to PT Survindo, following the
latter's inability to produce the boxes on schedule.

Survindo has a total score of 92, far above the minimum score
of 80, while Tjakrindo falls short to surpass the minimum score
with a total score of 66.

Under the split on Dec. 23, Survindo had the right to produce
60 percent of the 2.19 million boxes, while Tjakrindo the rest.

But later on, Tjakrindo complained with KPU over the
increasing price of aluminium by Rp 1,800 per kilogram from Rp
18,500 to Rp 20,200, in which the supply was mainly controlled by
PT Alumindo Light Metal Industry of Maspion Group.

Based on Monopoly Watch data, Alumindo supplied 100 percent
aluminium required by Tjakrindo, and 50 percent of aluminium
needed by Survindo.

PT Indo Aluminium, PT Inti Bumi Medan supplied the remaining
50 percent of aluminium required by Survindo.

KPU chairman Nazaruddin Sjamsuddin warned Maspion not to
increase the price of aluminium arbitrarily as its' measure could
endanger the 2004 elections.

Both Survindo and Tjakrindo welcomed the call to summon
aluminium producers so that it was clear the reason behind the
aluminium price hike.

However, a source said Survindo also started blaming KPU for
cause of its' failure to meet its boxes production plan because
the commission refused to pay the 20 percent down payment as
stipulating under its working contract with KPU.

KPU deputy secretary general Sussongko Suhardjo has repeatedly
said there was no down payment in the working contract of ballot
boxes with Survindo, which was also stated during the explanation
period of the tender.

Separately, Antara reported KPU member Chusnul Mar'iyah
attended on Saturday the ceremony of the first delivery of ballot
boxes to Papua and Sulawesi conducted by Tjakrindo from Surabaya.

"These boxes are an absolute needs for elections, without the
boxes the elections will not run well," she said.

Tjakrindo has said that it would deliver 50,000 boxes on
Saturday to East Indonesia. Earlier, Survindo also sent 30,000
boxes to Papua and East Indonesia.

KPU planned to re-evaluate the proportion of boxes to be made
by Survindo and Tjakrindo on Jan. 15 referring to the performance
of the two consortiums in producing the boxes.

Based on its proposal to KPU, Survindo with production
capacity of 40,000 boxes per day, has the obligation to produce
925,000 boxes as of Jan. 14, which is almost impossible to
fulfill.

Tjakrindo plans to produce 210,000 boxes, which is reasonable
to meet with its production capacity of 60,000 boxes per day.