Cement prices soar in provinces<\/p>\n
Oyos Saroso H.N., The Jakarta Post, Bandarlampung<\/p>\n
The cement shortage in Lampung and Banten provinces, triggered by
\nmechanical problems at the PT Semen Baturaja cement factory in
\nSouth Sumatra, has propelled the price of the commodity upward.<\/p>\n
A sack of cement, which usually sells for Rp 27,000 (US$3),
\nnow costs Rp 36,000, or even as much as Rp 40,000 in several
\nareas in Lampung.<\/p>\n
Technical problems at Semen Baturaja halted production for 10
\ndays, but the machines were fixed and have been running normally
\nsince Saturday.<\/p>\n
However, distributors had run out of cement stock and market
\nprices remain high, due to the time it takes to deliver new stock
\nfrom the Baturaja factory in Panjang district, Bandarlampung.<\/p>\n
Baturaja cement is more easily found compared to other brands
\nin Lampung and Banten because of the factory's proximity, but the
\nshortage continues in the two provinces.<\/p>\n
Baturaja cement is the leading brand in the two provinces.<\/p>\n
A Baturaja cement distributor in Telukbetung, Bandarlampung, A
\nLing, said he still had no cement stock in his warehouse as of
\nMonday. He said his company trucks had been queuing for three
\ndays at the factory, but were yet to receive their supply quota.<\/p>\n
A Ling also said he was confused about how much he should
\ncharge for the new stock, as the wholesale price listed on the
\ndelivery order had surged to Rp 33,000 per sack.<\/p>\n
A cement distributor in West Lampung, Syarifudin, 40, said he
\nhad to buy cement at Rp 33,000 a sack, and was thus forced to
\nsell it for Rp 36,000 to Rp 38,000 to make a reasonable profit.<\/p>\n
He said the high manufacturer's price had pushed up cement
\nprices to between Rp 39,000 and Rp 40,000 per sack in remote
\nareas.<\/p>\n
Meanwhile, a number of construction shops in Tanjungkarang and
\nTelukbetung are selling cement at Rp 35,000 to Rp 37,000 per
\nsack.<\/p>\n
The shops' owners said they had to raise prices because their
\nwarehouses had emptied of stock, and because they had to queue
\nfor a longer time and pay a higher price for cement supplies.<\/p>\n
"If we didn't raise our prices, we would suffer a bigger loss
\nif the price of cement suddenly dropped," said Along, 50, owner
\nof Along Jaya hardware store in Telukbetung.<\/p>\n
A director of a cement distributor, Sony Aswan, said her
\ncompany had completely run out of cement stock. "We usually get
\n10 truckloads of 320 sacks each. Our stock of cement has been
\ncompletely exhausted for the past 10 days," she said.<\/p>\n
She added that customers were constantly angry and accused
\ndistributors of hoarding cement to raise the prices. "Actually,
\nwe are facing difficulties in obtaining cement," she said.<\/p>\n
The construction sector has also been affected by the
\nshortage. For example, construction on a housing estate in
\nBeringin Raya, West Tanjungkarang, was halted two days ago due to
\nthe cement shortage.<\/p>\n
"We will wait until supplies and prices are normal. If we buy
\ncement at a high price, we are afraid the price of the houses
\nwill be higher and the products less saleable," said Aminudin, a
\nhousing contractor.<\/p>\n
The concern was echoed by Antony, 46, a contractor of a number
\nof shop-houses in Bandarlampung, who said he was forced to stop
\nconstruction activities temporarily in Central Lampung and Metro.<\/p>\n
"The availability of cement is hard to assess right now. Even
\nif there is a supply, the price will be very high. We have to
\nstop the project indefinitely. We feel sorry for the construction
\nworkers because the Ramadhan fasting month is just around the
\ncorner, and then the Idul Fitri holiday. Where will they get the
\nmoney to celebrate Idul Fitri?" he said.<\/p>",
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