Tender Procurements and Contract Opportunities Indonesia

JAKARTA: Commitment payment of procurement contracts between contractors and service cooperation contracts (KKKS) and providers of goods and services through the bank state-owned enterprises (SOEs) were almost through the numbers of Rp50 trillion.
 
Deputy Head of Executive Agency for Upstream Oil and Gas (BP Migas) said Hardiono per June 16, 2010 carrying the procurement transaction that has been and will be done through state-owned Bank reached U.S. $ 5.434 billion, or Rp49, 86 trillion. Now, for the placement of abandonment and site restoration fund (ASR) on the Bank of enterprises has reached U.S. $ 144.513 million approximately Rp1, 32 trillion.

He said the procurement of goods and services portion of about 70% of total spending upstream oil and gas. BP Migas, he said, pushing to 70% of contract payments oil and natural gas procurement is done through a state bank.

"We are optimistic that by the end of the transaction through the national banking could reach U.S. $ 7 billion," he said as written the official site of BP Migas today.

Effective April 2009, BP Migas issued a circular letter to all contractors KKKS to use the facilities of national banks in each transaction of goods and services KKKS shopping. The letter also includes policies for ASR KKKS to transfer funds from foreign banks to state banks in Indonesia.

"The policy does not violate the rules because the funds used to replace expenditures for goods and services are in-cost recovery," he said.

Currently, he said, has begun an aggressive national banking pioneer and seek financing opportunities and guarantee that no high risk in the upstream oil and gas industry. He pointed out that BNI has established a new division, specifically in charge of handling oil and gas upstream sector.

However, Hardiono told state-owned banks still need to find a breakthrough effort that prioritizes service standards, accelerating the process, and ease the requirements. Not only that, the banks must provide competitive rates compared to private banks and foreign banks in order KKKS interested in using his services.

"It would be better if the state-owned banks can attract cheap funds from both inside and from abroad to finance all petroleum activities in Indonesia," he explained. (MSW) By: Rudi Ariffianto (Bisnis.com)

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