Regulations needed for govt tenders: Associations

Regulations needed for govt tenders: Associations

Leony Aurora, The Jakarta Post, Jakarta

The government should reinstate certification requirements for
firms bidding for public tenders, to ensure they were competent
and qualified, business associations said on Monday.

One executive, Soeryadi, said the government needed to provide
the detail for the Presidential Decree No. 80/2003 on public
procurements, possibly in the form of a ministerial decree.

"We hope that certification can be used as a reference and be
included in the decree's supporting regulations," he told The
Jakarta Post after a seminar on standardization and the role of
associations held by the National Forum on Association
Cooperation (FNKA).

While a full package of supporting regulations already existed
for construction businesses, there were no regulations for other
industries, Soeryadi said.

"The lack of guides for non-construction services will cause
confusion among local governments and project leaders," he said.

Decree No. 80/2003 annulled an earlier law, which required
firms entering government tenders to have certificates issued by
their respective associations. According to the new decree, any
company can submit a tender bid as long as it holds a business
permit.

Such regulations were necessary since the pre-tender period
for regional government projects was drawing near, Soeryadi said.

The National Development Planning Board (Bappenas), which
designed the presidential decree, has said it dropped the
certification requirements to cut costs and stop bribery
occurring in the accreditation processes.

More cost-efficiency in public tenders was one of the
requirements of the World Bank to smooth the way for a loan of
US$1 billion.

FNKA chairman Anthony Sunarjo said while certifications added
costs, they were needed nevertheless.

"Now the power to choose tender winners is held by the local
project leader," Sunarjo said. This would mean rampant bribery
and tenders going to incompetent companies, he said.

Another recommendation from the seminar was for the
development of a regional public procurement forum, which
included all stakeholders, to determine specific local norms
based on mutual consensus.

A report detailing the suggestions would be submitted to the
government soon, Soeryadi said.