Small suppliers of foreign oil contractors call an end to new tender mechanism
Friday, September 15 2000 - 04:00 AM WIB
The small and medium-sized suppliers of the foreign oil and gas contractors of state-owned oil and gas firm Pertamina feared that they may have to close down their business unless a new tender mechanism is ended, the Bisnis Indonesia daily reported.
Sumantoro Radjiman, head of the suppliers association, was quoted by the paper as saying that under the new tender mechanism, the foreign contractors combine the small tender with the big tender, causing the local small and medium-sized suppliers to be unable to participate in the tender.
"How can small suppliers be able to join a tender worth Rp 150 billion (US$1=Rp 8,500), and also if the contractor like Maxus demands a guarantee worth US$40 million," Sumantoro said.
He said that under the new mechanism, only the foreign suppliers - possibly also related to the oil and gas contractors -- could join the tender.
He said that sooner or later, the local suppliers would have to close down their business.
He said that small and medium-sized suppliers were happy with the previous mechanism, under which the foreign oil and gas contractors separated the big tender from the small tender.
He pointed out as an example that when a contractor needed supply of cable, the contractor divided its needs to small value tender package and big tender package. (*)