RI firms urged to participate in UN tenders

Andi Haswidi, The Jakarta Post, Jakarta

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.