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.