Local pipe producers urge PGN to use their products

The association of Indonesian pipes producers (Gapipa) has asked state owned gas company PT PGN to use locally produced pipes for the 422-km gas pipeline project linking Jambi and Batam, Kompas reported Tuesday.

The association?s chairman Soesamto said in Jakarta on Monday that the 72-km section of the project linking Sakernan-Kualatungkal were being tendered, with bidders coming from Indonesia, Malaysia and several other countries.

He said that the price proposed by local company PT KHI Pipe Industries for the supply of about 13,900 tons of pipes for the pipeline project was the third lowest after Shanxii of China and Hicom Petropies of Malaysia.

The association said that the foreign companies could make such low bids because they carried dumping practices. The Indonesian anti-dumping committee is still investigating the alleged dumping practice, Soesamto added.

"The tender is being evaluated by PT PGN both technically and commercially,? he said, adding that the Batam-Jambi project which will be partly financed by the Asian Development Bank (ADB) has been long waited by the local pipe producers, which have since 1997 suffered a major setback due to the lack of demand.(*)