Subject: Defense ministry seeks direct appointment for arms procurement

The Jakarta Post [web site]

December 11, 2009

Defense ministry seeks direct appointment for arms procurement

In its arms purchase for the Indonesian Military (TNI) and National Police, the Defense Ministry has asked for exemption from an obligation to procure goods and services through open tenders.

“This is our wish and the authority rests with Bappenas. We can only propose this,” Defense Minister Purnomo Yusgiantoro told Antara on Friday, referring to the National Development Planning Board.

A 2003 presidential decree requires state institutions involved in the procurement of goods and services worth at least Rp 50 million to use an open tender system to avoid abuse of power and corruption. A draft revision of the decree stipulates that electronic procurement will be mandatory in 2011.

Purnomo said the Defense Ministry was seeking a direct appointment and financing through foreign loans to support the empowerment of the national defense industry.

The ministry had prepared a mechanism to prevent irregularities in the arms procurement through the direct appointment.

“The mechanism includes the formation of a procurement evaluation team that would strictly select parties to be awarded procurement projects,” he said.

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