Purbaya said the government will review the handling of this issue to ensure a fair resolution for all parties.
"I will check this immediately, as in 2021 I had not yet become Finance Minister. This matter had not reached me at that time. However, I have heard that some vendors or contractors who completed government or ministry projects have not been paid, even though the work has been finished," he said here on Thursday.
The minister pledged to make efforts to settle the outstanding payments. "I will see how far the handling has progressed and study it to ensure it is resolved," he added.
Complaints regarding delayed payments were previously raised by businesses affiliated with the Indonesia Congress and Convention Association (INCCA) and the Indonesian Tour and Travel Companies Association (Asita).
They highlighted unpaid government events, including the PON XX Papua 2021, which concluded four years ago.
INCCA Chairman Iqbal Alan Abdullah stated that Rp340 billion from PON Papua remains unpaid to service providers, mostly small and medium enterprises, including catering, exhibition contractors, transportation, and opening and closing event organizers.
This does not include Rp58 billion owed from Perpanas XVII 2021 in Papua, bringing the total to nearly Rp400 billion.
Iqbal warned that the delayed payments have seriously affected the sustainability of their members' businesses, which rely on short-term cash flow for operations.
He urged the Ministry of Finance under Purbaya's leadership to promptly settle these obligations.
"This is so our members can resume activities, and the national business cycle can continue, supporting economic growth and job creation," Iqbal said.
Furthermore, INCCA and Asita called on the government to facilitate payments to winning bidders of government MICE, event, and multievent projects through advance payments and phased installments until the events are completed, instead of full payment after completion as currently practiced.
They also urged the government to provide easier access to bank credit to support the organization of activities funded by the state budget (APBN), regional budgets (APBD), state-owned enterprises (BUMN), or regional-owned enterprises (BUMD), using invoices or contracts as guarantees of 50–60 percent, similar to practices in Singapore and Australia.
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Translator: Primayanti
Editor: Azis Kurmala
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