Gulf offers online auction in procurement of goods and services

Gulf Resources Indonesia has used online auction for the procurement of goods and services through website IOGonline.com provided by PT Prosinergi Multitama in a bid to reduce costs and to speed up the process of delivery, Bisnis Indonesia reported on Friday.

Prosinergi's CEO Sonny Sumarno said in Jakarta on Thursday that the online auction could reduce costs by about 50 percent for the bidders because they no longer needed to file a number of documents in the bidding process or to come to the oil company's office to file their bids.

"For vendors or suppliers who have been given access to the website are no longer needed to come the Gulf office in processing their bidding. The only need to file their bids through e-mail and password given to members," he said at the launching of the website.

Up to know, at least 827 vendors have used the online procurement facility. Each vendor is required to pay Rp 250,000 in membership fee.

According to him, Gulf Indonesia has 7,000 purchase orders a year, with a procurement value of up to Rp 200 million. The procurement of goods and service worth more than Rp 200 million is carried out through the oil company's head office.

Sonny said that the online tender for goods or services with procurement value of up to Rp 200 million will not break the procurement regulation issued by state-owned oil and gas company Pertamina. (*)