|
A total of 25 major companies have satisfied the
pre-qualification requirements in the government tender to provide
400,000 gas stoves for low-income households in Jakarta and Banten.
Among the 25 companies, which specialize in the manufacturing of
kitchen appliances, are PT Star Cosmos, PT Sanken Argadwija, PT Pindad,
PT Rinai Indonesia and PT Maspion.
The winner of the tender, which is part of the government's effort to
reduce kerosene consumption and thereby cut fuel subsidy spending, will
be announced at the end of January, and production will start in early
February.
The government has allocated Rp 58.7 billion out of the 2007 budget for
the production and distribution of the stoves.
"According to Presidential Decree No. 80/2003, the winner of a tender
worth more than Rp 25 billion is obliged to work together with small
and medium enterprises. This also applies to the production of the gas
stoves," said State Minister for Cooperatives and Small and Medium
Enterprises Suryadharma Ali during a media briefing Friday.
"The winning company will have to sign a written commitment to work
with small and medium enterprises, and will face legal consequences if
it breaches that commitment," the minister said.
"We are hoping that at least three small to medium-scale industrial
hubs in Yogyakarta, West Java and Banten will become involved in the
production of the stoves. These hubs have hundreds of people working in
this sector," Suryadharma said.
"The gas stoves will be made using 100 percent local content," he added.
The winning company would be required to conduct quality control over
the production of the stoves.
The ministry expects to distribute a total of one million gas stoves
this year, with the first-phase distribution of 400,000 gas stoves to
be conducted between March and May.
Low-income households will be given the gas stoves for free by
exchanging their old kerosene stoves through their local sub-district
offices.
In mid 2007, about Rp 100 billion more will be allocated from the
budget, if the legislature agrees to approve the second-phase of the
program, which would see the nationwide distribution of 600,000 stoves
between October and December.
According to a government official, the energy content of a liter of
LPG, currently sold at Rp 4,250 (about 46 US cents), is equal to the
energy content of three liters of kerosene, with the price of
subsidized kerosene currently standing at Rp 2,275 per liter.
|
