Cement prices to remain stable<\/p>\n
JAKARTA (JP): Cement prices will not be raised again this year
\ndespite the continuing depreciation of the rupiah against the
\nU.S. dollar, the president of the country's largest cement
\nproducer, PT Indocement Tunggal Prakarsa, said.<\/p>\n
Sudwikatmono said a drop-off in cement sales precluded local
\nproducers from increasing the price of their product.<\/p>\n
\"How can we increase cement prices again while we have trouble
\nselling our product now?\" Sudwikatmono said after attending the
\nground-breaking ceremony for Techpark Cikarang Industrial Estate
\nyesterday.<\/p>\n
Sudwikatmono, a close associate of President Soeharto,
\nadmitted that demand for cement had declined by at least 10
\npercent in the past two months.<\/p>\n
He said builders and individual buyers stopped buying cement
\nafter the government imposed a tight monetary policy in early
\nAugust.<\/p>\n
The postponement of some industrial infrastructure projects,
\nboth by the government and private investors, had slowed down
\ndemand, he said.<\/p>\n
The Indonesian Cement Producers Association increased last
\nmonth the factory price of cement by between 3 percent and 5
\npercent per bag in response to the sharp drop in the rupiah's
\nvalue against the U.S. dollar.<\/p>\n
Sudwikatmono hailed the decision, saying last month that the
\nrupiah's depreciation against the greenback had increased cement
\nproduction costs as some raw and supporting materials like gypsum
\nand coal were imported from Thailand and Australia respectively.<\/p>\n
The imported components in cement production accounts for some
\n3 percent of total production costs.<\/p>\n
The unilateral increase in cement factory prices had resulted
\nin higher retail prices than the government-set reference prices
\nfor provinces.<\/p>\n
Consumers in Jakarta, for instance, have to pay between Rp
\n11,000 (US$3) and Rp 12,500 for a 50-kilogram bag, more than the
\nofficial price of Rp 10,000.<\/p>\n
Sudwikatmono has warned Indocement's distributors not to raise
\nretail prices too high because it would have a bad impact on the
\npublic.<\/p>\n
The current drop in cement sales was caused by diminishing
\ndemand rather than the increasing prices, he said.<\/p>\n
Publicly listed Indocement, the nation's largest cement
\nmanufacturer, has nine production units in West Java and another
\nin South Kalimantan, which is jointly owned by Kodeco of South
\nKorea.<\/p>\n
It currently produces more than 10 million tons of cement
\nannually. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cement-prices-to-remain-stable-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}