Vico accused of being unfair to local sub contractors

Thursday, December 14 2000 - 02:30 AM WIB

Oil and gas company PT Vico Indonesia in Muara Badak, East Kalimantan, is being accused of being unfair to local sub contractors and suppliers, the Kaltim Post daily reported.

The paper quoted Dahri Yasin of the association of the Muara Badak businessmen (APMB) as saying that Vico had violated the existing procedure in the appointment of sub contractors for developing government-sponsored projects.

Dahri said that, for instance, that a project worth less than Rp 25 million which should be able to be decided by Vico local official was instead being processed by Vico office in Jakarta. He said that this was against the ruling issued by the state-owned oil and gas firm Pertamina and the presidential decree, which stipulated that the development of such project with that size should be given to local companies or cooperatives.

Dahri accused Vico of favoring companies from outside the Muara Badak area.

He also said that Vico had been unfair in the appointment of suppliers of goods and services by favoring suppliers from outside of the Muara Badak area. (*)

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