Tenders for govt projects to be announced

Muninggar Sri Saraswati, The Jakarta Post, Makassar

To avoid collusion and nepotism, the government will publicize all tenders for projects funded by the state and regional budgets, starting next year.

A draft presidential decree on state tenders will require all companies run by families or relatives of Cabinet members eyeing government projects to announce their bids, Vice President Jusuf Kalla said on Sunday.

Kalla said the government would buy a full page of space in a local newspaper to announce any business opportunities funded by the state, the selection of which will also come through a tender.

"We will invite SPS to open a national bid," he announced in his private residence in Makassar, referring to the Newspaper Publishers Union.

The government will fine any publisher that violates the regulation 20 percent of the contract value, the Vice President said.

He was referring to publishers whose newspapers' circulation do not cover the whole country.

The decree is set to be issued either this month or in December, added Kalla.

"KKN shall be reduced through an extraordinary move for transparency," Kalla said, referring to corruption, collusion and nepotism. "There will be no (government project) tender without a public announcement in newspapers in advance. If such a tender takes place without an announcement, the funds will not be disbursed."

President Susilo Bambang Yudhoyono earlier announced a plan to issue a presidential decree to regulate businesses involving Cabinet members or their relatives.

The policy is expected to reduce corruption and boost public trust in his one-year-old government.

Separately, Coordinating Minister for the Economy Aburizal Bakrie supported the President's move, saying that "it is very good to prevent public condemnation".

"(My family-owned) companies always make public announcements when they plan to join a bid, but accusations have always been made against them. This must be stopped," he said.

Aburizal's family owns PT Bakrie and Brothers, which owns plantation, infrastructure and telecommunications businesses.

Aksa Mahmud, Kalla's brother-in-law, agreed.

"As a person with a business background, I would certainly issue such a regulation if I were president," he said.

Aksa, who is also a deputy speaker of the People's Consultative Assembly, claimed there had never been any collusion involving his family's businesses, notably PT Bosowa holding company.

"Bosowa won a bid to build a toll road in Makassar even though a company of Pak Kalla's relative also joined the bid," he said.

The Bosowa group is involved in infrastructure, transportation and finance.