Soeharto backs local contractors' appeal

JAKARTA (JP): President Soeharto supported a call yesterday to involve more local contractors in the construction of buildings and roads by the private sector, a building executive said.

Indonesian Builders Association Chairman Agus Kartasasmita said the President also called on developers of buildings, roads and other infrastructure projects to use more local components in their work.

"It sounds strange if the developers of construction projects in the country shun local contractors and locally produced components," Agus quoted the President as saying.

Agus and other association executives met the President to report the results of the association's recent meeting.

In the meeting, the association complained about the reluctance of property and infrastructure developers to hire local contractors.

Speaking to journalists after yesterday's meeting with Soeharto, Agus said he did not know the precise market share of foreign contractors in the country's rapidly developing construction business.

"We cannot monitor the strength of their presence because, unlike in government-funded projects, the number of tenders for privately financed construction projects is limited," he said.

He said that developers often solicit only foreign contractors, leaving domestic contractors "like guests in their own home."

Agus suggested that the government issue a law, allowing local firms equal opportunity to participate in privately financed construction projects.

Agus said tenders of privately funded construction projects should be open to all, in the same fashion as government-funded projects.

He said tenders for privately financed construction projects are generally limited to certain contractors, mainly foreign companies. (hen)