Kadin accuses Maxus of conducting unfair practices
Thursday, September 14 2000 - 03:30 AM WIB
The Jakarta chapter of the Indonesian chamber of commerce and Industry (Kadin) has charged Maxus Indonesia, one of Pertamina's oil production contractor, with conducting an unfair business practice in the procurement of equipment and repair services.
The chairman of Kadin's Jakarta branch Daniel Hutapea said in Jakarta on Thursday that the requirement to provide a guarantee of worth US$40 million when joining the American oil company's tender was another form of a business barrier to prevent local companies from taking part in the bidding process.
"With such a requirement, it is almost impossible for the local companies to win the tender," he was quoted as saying by Bisnis Indonesia.
He acknowledged that Maxus had done nothing wrong in the bidding process because it had followed the procedures such as by announcing the bidding transparently to the public.
But he said that none of 100 local companies taking part in the tender passed the pre-qualification due to their inability to provide the guarantee. "As the consequence, only foreign companies - Wilson Supply and National Well International, both of the United States - could pass the pre-qualification," he added.
Daniel also complained the inability of Pertamina to stop such unfair practice, saying that the oil Pertamina which had 85 percent ownership in the oil block which is operated by Maxus should be able to protect the local companies.
In addition, according to Daniel, the practice conducted by Maxus did not only breach the regulation on the procurement of goods and services, but also the newly introduced anti-monopoly law.
A senior official of Maxus, however, denied the charge when he was contacted to comment on the accusation.
M. Syahul, the manager for the oil company's materials and supply base, told Kompas daily that the requirement to provide guarantee worth up to $40 million was not aimed at preventing local companies to take part in the tender.
He said that the American company needed a big supplier, which did not only have the capacity to supply the materials in time but also to store the goods. (*)