Friday, 5 June 2009

State-Owned Enterprises Ready to Synergize in The Procurement of Main Equipments of Defence System

Secretary to the Minister of State-Owned Enterprise [BUMN] Said Dudu, assured that his office were ready to synergize state-owned enterprises for procuring main defence system equipments [Alutista] in the aspects of technology as well as in funding.

“BUMN like Pindad [arms and weapon industry] and PT Krakatau Steel have excellent technology, while state-owned [BUMN] have the fund to finance the projects”, he stated to the press in Jakarta Friday [22/5].

However, according to Said, the process of procurement was still hindranced by problems of government loan, because BUMN banks were not in a position to extend loan without guarantee, as required by Bank Indonesia regulations.

So far he had been doing a lot of negotiations with the Department of Defence on the procurements of Alutista, still the guarantee was not included in the State Budget [APBN] “If they were imported arms the APBN would gladly guarantee. And yet domestic purchases were not only less expensive, but also competitive in terms of quality” Said remarked, while saying that Krakatau Steel and Pindad had built tanks at half the price offered by overseas producers.

No comments: