Bappenas wary of hikes in cement prices<\/p>\n
JAKARTA (JP): The hikes in cement prices could jeopardize some
\nof the ongoing development projects sponsored by the government,
\nState Minister for Development Planning Ginandjar Kartasasmita
\nsays.<\/p>\n
Ginandjar, who is also chairman of the National Development
\nPlanning Board (Bappenas), told a hearing with the House of
\nRepresentatives yesterday that unless the cement shortage is
\novercome immediately, the government may see the costs of many of
\nits projects skyrocket.<\/p>\n
Given the government's limited funds, the soaring costs could
\nalso mean that the government must slow down its development
\nprograms, he warned.<\/p>\n
Another troubling factor is the impact of the cement prices on
\ninflation at a time when the government is fighting hard to keep
\nit low, he added.<\/p>\n
During the first eight months of this year alone, inflation
\nreached 6.85 percent, far higher than the five percent per annum
\ntargeted by the government under its Sixth Five Year Development
\nPlan (Repelita VI).<\/p>\n
\"Bappenas is paying serious attention to the problem,\"
\nGinandjar told members of the House's Commission X. \"This
\nsituation serves as a test case for the government.\"<\/p>\n
Housing developers said that they have felt the brunt of the
\ncement price hikes, and this will in turn be passed on to
\nconsumers.<\/p>\n
Chairman of Indonesian Real Estate Association (REI)
\nEnggartiasto Lukito, during the opening ceremony of REI Expo'94
\nyesterday, said he estimated that cement producers have reaped no
\nless than Rp 250 billion (US$115 million) in profits from the
\ncement price boom.<\/p>\n
\"Just imagine that with such money, we could build 55,000 low-
\ncost houses of 21 square meters each for those of low-income
\nlevels,\" Enggartiasto said.<\/p>\n
Halt<\/p>\n
He added that many developers have simply halted building low-
\ncost houses because the higher cement prices have slashed the
\nsmall profit margins to which they are entitled by the
\ngovernment.<\/p>\n
The prices of houses for the middle and upper classes have
\nincreased by around five percent.<\/p>\n
Ginandjar told the DPR yesterday that the government plans to
\nimport some 800,000 tons of cement to ease the domestic shortage
\nand bring the price down.<\/p>\n
Officials had earlier said that Indonesia would buy cement
\nfrom India, Thailand and China.<\/p>\n
The minister rejected an accusation that the cement shortage
\nwas caused mainly by poor planning and anticipation, although he
\nadmitted that the economy has been growing faster than the
\ngovernment had anticipated.<\/p>\n
He said Indonesia must raise its cement production capacity in
\nthe next five years to 33 million tons a year from the present 21
\nmillion tons.<\/p>\n
The Indonesian Cement Association has stated that cement
\nimports from India and Thailand could be sold here at Rp 8,300
\nper 40-kilogram bag at the lowest and those from China at Rp
\n7,500. These prices would still be much higher than the
\ngovernment-set price reference of Rp 5,930 for Java.<\/p>\n
In the past few weeks, cement prices in Jakarta rose to as
\nhigh as Rp 15,000 per sack, in Bali to Rp 11,000, or 57 percent
\nhigher than the local price reference of Rp 6,975, and in
\nJayapura, Irian Jaya, at Rp 48,000, or six times higher than the
\nlocal price reference of Rp 7,965. (par\/als)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bappenas-wary-of-hikes-in-cement-prices-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }