The Papua and West Papua Development Acceleration Unit (UP4B) and 18 local business and trade organizations have signed a memorandum of understanding to oversee the implementation of Government Regulation No. 84/2012 on the procurement of government goods and services to speed up development in both provinces.
“The MoU is to monitor the implementation of the government regulation so it can be effective in assisting Papuan firms, so that one day they can compete with entrepreneurs from outside the province,” said UP4B head Bambang Darmono.
The agreement was signed by Bambang and the trade and business association chairmen at the UP4B office in Jayapura on Saturday.
The agreement is aimed at supporting Papuan entrepreneurs as well as assisting them in raising their management capacity so they can compete with non-Papuan businesses.
Apart from overseeing the regulation, the agreement is also aimed at enhancing the role of the crisis center in overcoming disputes arising from the imposition of the regulation, as well as a means for consultation, the exchange of data and information, and the preparation and development of a database covering business capacity, company classification and strategic measures.
Chairman of the Papua chapter of the Indonesian Chambers of Commerce and Industry, John Kabey, said the MoU would have a positive impact on native Papuans, especially as Government Regulation No. 84/2012 was the result of a struggle.
“This is a beginning of siding with native Papuan entrepreneurs. This is the result of a struggle,” said Kabey after signing the MoU with UP4B as representative of native Papuan entrepreneurs.
He expressed hope that in the future native Papuan entrepreneurs would prepare a full membership database. “An association should have a proper office to facilitate members to coordinate, because only then can Papuan entrepreneurs can deal with the bureaucracy.”
The regulation stipulates that projects worth up to Rp 500 million (US$55,000) implemented in coastal areas and Rp 1 billion in mountainous areas of Papua and West Papua should be directly allotted to native Papuan entrepreneurs.
Projects worth over Rp 5 billion should go through a tender process and entrepreneurs from outside the provinces should collaborate with native Papuan entrepreneurs if they wish to tender.
Bambang said the essence of Law No. 21/2001 on Papua special autonomy supported native Papuans in every aspect of life.
Government Regulation No. 84/2012 was the result of UP4B’s year-long struggle in its duties in Papua and West Papua, he claimed.