“So, I think we may be able to lower our reference prices for future bidding projects,” said Apisak. Government agencies cannot implement investment projects if bidders proposed investment cost more than the reference price set by the government. Apisak said there are two main factors in calculating reference prices: cost of materials and statistical cost of previous projects. Previously, the fall in crude oil prices also contributed to lower cost of government investment projects, as bidders could benefit from lower energy cost, he said. Meanwhile Agus Prabowo, chairman of the National Public Procurement Agency of Indonesia, said that Indonesia had reformed its public procurement system eight years ago.

Source: The Nation Bangkok November 15, 2017 18:20 UTC