Caltex denies it practices unfair competition
Saturday, October 21 2000 - 04:30 AM WIB
Oil and gas contractor PT Caltex Pacific Indonesia (CPI) has denied allegations that it practices unfair competition in the piping tender procedures. Nevertheless, CPI expresses its readiness to cooperate with the Business Competition Supervisory Commission (KPPU) that is going to investigate Caltex's piping tender procedures.
Caltex senior vice president Wahyudin Yudiana acknowledged that the company had changed the procedures and requirements for its piping tender.
However, Yudiana denied allegations that the changes were conducted following accusations of unfair practices. He noted that the changes in procedures and requirements was aimed to cut bureaucracy and save costs.
With the changes would have saved Caltex $10 million per annum.
Yudiana noted that the changes were made following an independent audit by PricewaterhouseCoopers.
"In the audit, it was found that there were a number of unnecessary costs that actually could be dropped," he said.
He noted that the changes in the tendering procedures had been approved by the Foreign Contractor Supervisory Agency at the state oil and gas company Pertamina (BPPKA-Pertamina).
KPPU announced earlier it would investigate Caltex's piping tender procedures following complaints from businessmen participating in the tender. (*)