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Indonesian firms should take advantage of procurement tenders
organized by the United Nations that are worth billions of dollar each
year, government officials say.
With its massive procurement budget, the United Nations is one of the
world's single largest purchasers of goods and services. In 2005, for
example, the UN procurement tenders were valued at a staggering US$8.33
billion.
Yet, firms from developing nations, including Indonesia, seldom benefit
from them as the bidding procedures are considered too restrictive,
said Salman Al-Farisi, director for development, economic and
environmental affairs at the Foreign Ministry, on Monday.
Salman said that the issue was no longer a question of lack of
procedural know-how, but more one of cost and timing for Indonesian
firms in following the procedures as compared to their Western
counterparts.
"The bidding requirements are less favorable for developing countries.
Just take the requirements for the procurement of soldiers' field
rations in past tenders, for example. The testing of samples had to be
conducted at a laboratory in Europe, which made it more costly and
time-consuming for Indonesian firms."
In terms of product quality, Salman said that Indonesian companies had
the capacity to delivering quality products.
"Indonesian firms that enter UN procurement tenders are obviously those
with experience in international bidding procedures. Some of them have
entered previous UN tenders," he said.
This March and April alone, the UN procurement service is scheduled to
carry out 28 tenders in New York for various types of goods and
services, including air charters, communications equipment, freight
forwarding, printing services and miscellaneous goods with an estimated
value of $6 billion, Industry Ministry data reveals.
Industry Minister Fahmi Idris also voiced his concerns about the lack
of Indonesian firms participating in UN procurement tenders, saying
that local firms would actually have good chances of winning if the
procedures were less restrictive.
"So far, we have only succeeded in winning a few tenders in the past.
The procedures are just too difficult," Fahmi said.
He suggested that an association be established specifically for
Indonesian companies wishing to participate in UN tenders.
The UN procures goods and services through competitive solicitations
from qualified and registered vendors in its procurement service
department. The solicitation for the vendors is issued as a request for
proposal (RPF), invitation to bid (ITB) or a request for quotation.
Detailed information on vendor registration is posted at a registration
menu on www.un.org/Depts/ptd/.
For those interested in doing business with the UN, potential suppliers
of goods or services are also encouraged to register their company with
the United Nations Global Marketplace (UNGM).
The UNGM acts as an important procurement tool to shortlist suppliers
for competitive bidding.
All information is available at www.ungm.org.
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