Cement prices raised to adjust rupiah's fall<\/p>\n
JAKARTA (JP): Indonesian cement producers increased yesterday
\nthe factory price of cement by between three percent and five
\npercent to adjust the rupiah's sharp drop against the U.S.
\ndollar.<\/p>\n
Sudwikatmono, president of the country's largest cement
\nproducer PT Indocement Tunggal Prakarsa, said the rise was
\napproved by the Association of Indonesian Cement Producers.<\/p>\n
"Members of the association met here last week and agreed to
\nincrease the cement price between three percent and five percent
\nper bag," Bisnis Indonesia quoted him as saying.<\/p>\n
Sudwikatmono also said the increase in the factory price of
\ncement should not necessarily increase the retail price.<\/p>\n
"I guarantee the increase will not have a bad impact on the
\npublic," he said.<\/p>\n
But according to local media reports, the retail cement price
\nin several cities in Central Java, for example, increased to
\nbetween Rp 12,500 (US$4.38) and Rp 14,000 per 50-kilogram bag,
\nhigher than the retail price of Rp 10,000 per bag set by the
\ngovernment for the province.<\/p>\n
The government periodically sets the retail price of cement in
\nevery province.<\/p>\n
The Minister of Trade and Industry Tunky Ariwibowo previously
\nwarned cement makers not to increase the cement price amid this
\ntight monetary policy.<\/p>\n
Sudwikatmono, a close associate of President Soeharto, said
\ncement makers had to increase the cement price as a result of the
\ntight monetary policy imposed by the government.<\/p>\n
Bank Indonesia raised late last month its key interest rates
\nto between 20 percent and 30 percent per annum to shore up the
\nrupiah, which had lost over 20 percent since the central bank
\nfloated the currency in mid-August.<\/p>\n
This prompted an increase in bank deposit rates to between 25
\npercent and 30 percent. As a result, short-term loan interest
\nrates also increased to above 30 percent.<\/p>\n
Sudwikatmono admitted yesterday the demand for cement had
\ndeclined in the past few weeks as builders and individual buyers
\nhalted their purchases due to the rupiah scarcity.<\/p>\n
"This is seen from the declining demand of cement in the
\nmarket," Sudwikatmono said.<\/p>\n
He said Indocement would soon import 30,000 tons of cement
\nfrom Japan to anticipate cement's scarcity in the country.<\/p>\n
Sudwikatmono said imports were expected to meet a possible
\nsurge in demand in coming months. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cement-prices-raised-to-adjust-rupiahs-fall-1447893297",
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