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Jakarta Post

Papua wants more Papuans involved in business, issues new procurement rules

  • Victor Mambor

    The Jakarta Post

Jayapura, Papua   /   Thu, August 1, 2019   /   04:17 pm
Papua wants more Papuans involved in business, issues new procurement rules This picture from the Presidential Palace shows President Joko "Jokowi" Widodo (2nd right) riding a motorbike in Wamena, Papua, on May 10, as he embarks with his delegation to get a first-hand look at the proposed trans-Papua highway. (AFP/Indonesian Presidential Palace)

Papua Governor Lukas Enembe has issued a regulation to help boost the involvement of Papuan businesspeople in procurement projects and speed up development in Indonesia’s easternmost province.

The 2019 gubernatorial regulation on procurement is effective since Thursday. It serves to implement a 2019 presidential regulation on procurement in the provinces of Papua and West Papua.

“We expect more native Papuan businesspeople to be involved in the procurement of goods and services in the province with the issuance of the regulation,” Enembe said in Papua’s capital city of Jayapura on Tuesday.

He explained that the presidential regulation had three aspects to facilitate the involvement of Papuan businesspeople. The first is the direct procurement of goods and services worth up to Rp 1 billion (US$70,855) or consultation services worth up to Rp 200 million. 

The second is a limited tender for native Papuan businesspeople only, and the third is a partnership and subcontract for native Papuan businesspeople.

Enembe expressed hope that the regulation would spur interest of local businessmen to take part in the province’s projects.

This was especially important, he added, because provincial administration tenders for the procurement of goods and services had only reached Rp 2 trillion so far this year, while the province had budgeted Rp 14 trillion of for the procurement of goods and services in 2019.

There was also suspicion that the heads of working units in the administration split procurement projects into smaller projects worth no more than Rp 200 million each, thus enabling them to procure goods or services by direct appointment or self-management rather than through a tender, he added.

Enembe said he was irked because such practices had been conducted for years by rogue officials in the working units.

“Papua’s administration is collaborating with the Corruption Eradication Commission [KPK] in building an electronic government system to deal with such things,” Enembe said.

In response to the gubernatorial regulation, the Papuan Businessman Customary Chamber (KAPP) submitted to the provincial administration the profiles of 65 companies belonging to native Papuan businesspeople.

“We hope all working units will give native Papuan businesspeople wide opportunities,” KAPP chairman Musa Haluk said, adding that the 65 companies were spread out across the province and were active in their businesses.