Indonesian Political, Business & Finance News

Social Affairs Minister bans staff from meeting vendors to prevent collusive practices

| Source: ANTARA_ID Translated from Indonesian | Regulation
Social Affairs Minister bans staff from meeting vendors to prevent collusive practices
Image: ANTARA_ID

Jakarta (ANTARA) - Social Affairs Minister Saifullah Yusuf has reaffirmed the ministry’s commitment to maintaining clean practices free from budget deviations by issuing a circular that prohibits all ministry personnel from meeting vendors or company representatives outside official forums to prevent collusive practices or “kongkalikong”. “I have issued a letter stating that no ministry personnel may meet with vendors or company leaders participating in tenders within the Social Affairs Ministry, except in official forums,” he said during a press conference in Jakarta on Tuesday. Saifullah stated that this measure is intended to close loopholes for lobbying in the procurement of goods and services (PBJ) within the ministry, particularly related to the strategic Sekolah Rakyat programme. The policy is seen as a concrete effort by the Social Affairs Ministry to abandon past practices that have often tarnished the institution’s reputation. “We require assistance from the Attorney General’s Office and the Police. We have a special request to the Attorney General and the National Police Chief to provide supervision in procurements within the Social Affairs Ministry to make the process very strict,” he explained. Regarding negative issues on social media about alleged price mark-ups, Saifullah emphasised that the ministry is open to criticism and audits from authorised institutions. However, he assured that if strong evidence of deviations is found, the ministry will be the first to report it to law enforcement authorities. “If there is evidence, we will be the first to report it to law enforcement. Do not tarnish the President’s strategic programme with practices that are no longer relevant,” he asserted. Each Sekolah Rakyat student receives four pairs of shoes consisting of daily shoes (sneakers), sports shoes, shoes for Daily Uniform (PDH), and shoes for Field Uniform (PDL). All these items are domestically produced products as a commitment to the Domestic Component Level (TKDN). Based on realised data, the budget for PDL shoes for students is Rp700,000 with a tender realisation price of Rp640,000. Meanwhile, for daily shoes at the junior and senior high school levels, the realised price is Rp300,000 from a budget of Rp500,000, and for primary school level, it is Rp250,000. “Well, for 2025 it’s already set, which is why this year the allocation for students is around 32,000 but we have procured up to nearly 40,000 pairs to prepare for possible needs like replacements for damaged children’s shoes and so on. So for 2025, everything has been allocated and distributed entirely to Sekolah Rakyat students. That can be checked directly at the schools,” he affirmed.

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