Indonesian Political, Business & Finance News

Tenders for govt projects to be announced

| Source: JP

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.

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