Tender Procurements and Contract Opportunities Indonesia

JAKARTA. Commitment payments procurement contracts for goods and services between the contractor cooperation contract (SCC) with the providers of goods and services through the bank state-owned enterprises (SOEs) nearly broke the USD 50 trillion.

Deputy Head of Executive Agency for Upstream Oil and Gas (BPMIGAS), Hardiono said, per June 16, 2010, procurement transactions that have been recorded and will be done through state-owned Bank reached U.S. $ 5.434 billion (approx. USD 49.86 billion). Meanwhile, for the placement of funds abandonment and site restoration (ASR) on owned banks amounted to U.S. $ 144.513 million (about USD 1.32 trillion).

He said, the procurement of goods and services portion of about 70 percent of total spending upstream oil and gas. BPMIGAS encourage 70 percent of contract payments oil and natural gas procurement is done through a state bank.

"We are optimistic at the end of the year through the national banking transactions could reach U.S. $ 7 billion," said Hardiono in Jakarta, Thursday (17 / 6).

Effective April 2009, BPMIGAS issued a circular letter to all contractors PSC to use the facilities of national banks in each shopping transaction PSC Contracts for goods and services. The letter also contains the policy that the contractor ASR PSC to transfer funds from overseas banks to state-owned 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.

Hardiono welcomes the commitment shown to the national banking system and pioneered the search for financing and underwriting opportunities are not at high risk in the upstream oil and gas industry. Exemplified, BNI, which has formed a special division in charge of taking care of new oil and gas upstream sector.

"This is the real form of the concept of Indonesia Incorporated, which confirms oil and gas upstream sector became one of the driving stimulus of the national economy," said Hardiono.

Although Therefore, said Hardiono, 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 interest rates than private banks and foreign bank cooperation contract that the contractor 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," continued Hardiono.

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