Soeharto backs local contractors' appeal

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)