Mercedes Benz Cancels to Win Indonesian Government Tender

After got the good news, now PT Mercedes Benz Indonesia just gets a bad news. A few days ago, PT. Mercedes Benz Indonesia announced as the winner of a tender held by the Indonesian government. Unfortunately, the issued came up in the public force the Indonesian minister of state secretariat to void this tender. In Wednesday, 10 Sept 14, Indonesian government announced to cancel the contract that will signed with PT Mercedes Benz of Rp 91,94 Billion or about USD 8,5 million for a number of 72 Mercedes Benz car type E400.
image source: yogaretnam.com

In the first announcement before, the government was pretty sure that this was a proper decision based on several considerations, including about the lower price. But, the protest spread out from the public of Indonesia has forced the government to cancel this policy. Many people though that the minister’s decision about buying cars from Mercedes Benz is not that wise. Mercedes Benz, just like others European car is known as a prestigious car, no matter the price. This is about value and culture of Indonesian people. Using such a prestigious car like this is able to hurt the image building of the next government because it looks too high and luxurious.
Indonesian chosen president, Joko Widodo (known well as Jokowi) is known as a low profile government that very close to the people. People like him because his populist character and he is so simple so that the people believe that Jokowi is able to bring social welfare to all the people. That’s why Indonesian government under his cabinet is not match to that prestigious cars as well. The next government needs to pay attention about this case to totally build a strong image of humble and simplicity.
Moreover, the new cabinet has not been started yet. This policy should be taken by the next government, instead of the current government. About the cooperation plan with the PT. Mercedes Benz, it should be decided under the Jokowi’s Cabinet. The Jokowi’s cabinet may go on the tender with Mercedes Benz or may take the others way. But there is an opinion about using Esemka – the cars that produced by Indonesian senior high school. Using these cars is deemed to be a wise policy to develop domestic automotive industry. This way can be chosen to promote the competitive advantages of domestic product. Moreover, it will contribute to the increase of social welfare. Even, this can show to the people that the government has no longer an exclusive group that has to be afraid of.
The Indonesian government’s decision to cancel cooperation with PT Mercedes Benz must be regrettable. However, in this case, PT Mercedes Benz Indonesia admits to respond it wisely. They can understand about how hard the government position to take this decision. Nevertheless, The contract is not signed yet between the two party. The government also does not pay anything yet to the Mercedes Benz. This policy should not give any financial loss to the both side.


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