"We are applying a tender system for the delivery of fertilizers. Hence, ships and other transportation services are being procured through a tender or auction system," Pupuk Indonesia Corporate Communications Head Wijaya Laksana remarked in Jakarta on Friday.
Laksana elaborated that fertilizers were procured largely through a joint tender method to ensure greater price efficiency and consistent service quality of the transportation providers for that variety.
"Hence, the delivery of fertilizers is conducted through a tender mechanism through ships, trucks, and other means of transportation," Laksana explained.
Laksana also remarked that activities between private companies and one of its subsidiaries, PT Pupuk Indonesia Logistik, were strictly business in nature and pertained to shipping or boat rentals, as well as ships used rather than those for fertilizer distribution.
"All steps we have taken, including cooperation with Pupuk Indonesia Logistik, is in line with the existing mechanism. We have, in fact, committed no violation of rules in our engagement with subsidiaries. All is in harmony with prudent and good procurement mechanisms. We are careful," Laksana noted.
The Corruption Eradication Commission (KPK( had earlier conducted a raid and caught red handed against eight people in a case of alleged bribery related to cooperation for fertilizer distribution. Speaking in this connection, Pupuk Indonesia clarified that no director was netted during the antigraft body's raid.
The directors of Pupuk Indonesia had visited the non-profit agency's office to tender a clarification over the case.
Pupuk Indonesia also revealed that the case did not hinder the fertilizer distribution process of both subsidized and non-subsidized varieties.