Friday, July 18, 2008
UN Urges RI Bids in $1.8b Renovation Project
Source: The Jakarta Post

The UN is offering procurement projects valued at up to US$1.8 billion for the renovation of its headquarters in New York -- and urging Indonesian firms to take part.

Visiting UN procurement division director Paul Buades told potential suppliers in Jakarta on Thursday that the renovation, which falls under the nonmilitary procurement category, would start this year and require products such as furniture, ceramics and electronics.

"I hope more Indonesian firms can register with the UN Procurement Division and take advantage of business opportunities provided by each of the projects," Buades said.

With its massive procurement budget, the UN is one of the world's single-largest purchasers of goods and services. In 2006, UN procurement tenders were valued at US$9.4 billion, having steadily grown from $6.5 billion in 2004 and $8.3 billion in 2005.

Indonesian companies interested in the projects, he said, would be required to follow 13 registration steps to be listed as official suppliers before they could participate in bidding processes.

The 13 steps include gathering the usual information on banking, finance and quality assurance certifications.

Registration can be carried out through the Internet at www.ungm.org. As of April 29, the website shows only 11 registered Indonesian companies.

Qualifying for UN procurement projects has been a challenge for many suppliers from developing countries that fall short the imposed standards.

For example, to qualify for soldiers' field rations, a supplier must have their products tested in a laboratory in Europe. For Indonesian suppliers, the requirement means higher costs and delays in production.

Also at the investors gathering, Indonesian Chamber of Commerce and Industry (Kadin) chairman for public policy Utama Kajo agreed that Indonesian suppliers still faced considerable constraints in passing UN standards.

"Many firms here have yet to develop the necessary best practices required by such an international standard," Utama said.

He added that local firms must be able to ensure their products' quality, delivering them on time and being able to maintain long-term cooperation with partners.

To encourage more participation of Indonesian firms, he said, Kadin in cooperation with the Foreign Ministry would hold more seminars to educate potential suppliers about the UN system.

One Indonesian UN procurement suppliers, Siti Ariyanti Adisoediro, said the UN's registration procedure was indeed difficult to follow.

"My company won a tender to supply soldiers' equipment when Indonesia sent its troops on a peacekeeping mission in Bosnia in 1994," she said, adding that the registration process took about six months.