President Declares War on Mark-Ups

Friday, 16 January 2009

TEMPO Interactive

President Susilo Bambang Yudhoyono stated that the culture of marking up the cost of goods and service procurement is the source of corruption and collusion that we must fight against. “This is a disease,” he said, officially opening the National Indonesian Consultant Association (Inkindo) convention at the Presidential Palace yesterday.

The president said he was not yet satisfied with the state’s financial accountability implementation. According to him, even one cent of the state’s treasury must be held accountable. He also called the procurement process to be strictly monitored. “All ministries, institutions, central and regional governments, the Indonesian Armed Forces and the Police, are not immune,” he said.

He added that the amendment to Presidential Decree no. 80/2003 on Government Goods and Service Implementation can also be changed if necessary. “In the future, goods and service procurement must be done more effective, faster, easier, cheaper and corruption-free,” the president said.

Inkindo chairman Bachder Djohan called on the government to facilitate the procurement system. Inkindo, he said, is pressing for regulations on the procurement of government goods and service to be improved, so that local businessmen can be protected in the global market era. “We hope the government will use national consultants, products, goods and services,” he said.

Inkindo, established 30 years ago, today has a membership of 6.600 consulting companies throughout Indonesia. Meanwhile, Public Works minister Djoko Kirmanto stressed that auctions and biddings are being carried out fairly. “We will not let mark ups and collusion take place. I close my eyes so I don’t know who the owners (of the consulting companies) are,” he said.