Cement producers have no reason to raise prices: Tunky<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
\nassured the public yesterday that there would be adequate
\nsupplies of cement on the domestic market even though prices for
\nthe commodity have recently been on the increase.<\/p>\n
"Traders have no reason to increase cement prices because
\nproduction is adequate," Tunky said after addressing a seminar on
\nthe promotion and utilization of local products.<\/p>\n
Commenting on the upward trend in cement prices in several
\ncities over the last few days, Tunky said that he has discussed
\nthe pricing issue with members of the Association of Indonesian
\nCement Producers.<\/p>\n
He said the producers told him that they had no intention of
\nincreasing prices. "Price increases in the market place are
\ncaused by distortions in the distribution system," he said.<\/p>\n
He said that the producers promised to increase cement
\nsupplies in towns where prices were increasing due to shortages.<\/p>\n
"The best way to solve the problem is to meet cement demands
\nin the shortage-hit towns so that there is no reason for
\ndistributors to raise prices," he said.<\/p>\n
The association's chairman, Soepardjo, who met with Tunky and
\nseveral ministry officials on Monday, confirmed that the price
\nincreases were caused by shortages in some towns. However, he did
\nnot say which towns had experienced the supply problems.<\/p>\n
Antara reported this week from Semarang, Central Java, that
\nseveral cities in the province have seen increases in cement
\nprices over the last few days from Rp 12,500 (US$5.40) to Rp
\n14,000 per 50-kg sack. Cement prices have also increased in
\nLampung, the news agency reported.<\/p>\n
Tonasa<\/p>\n
Meanwhile, South Sulawesi Governor Zainal Basri Palaguna said
\nafter meeting with President Soeharto yesterday that on Sept. 10
\nthe President will officially inaugurate the fourth production
\nunit of state-owned PT Semen Tonasa in Tonasa, South Sulawesi.
\nThe unit will have a production capacity of 2.3 million tons per
\nyear.<\/p>\n
"With the operation of Unit IV, Semen Tonasa's plant will have
\na total production capacity of four million tons per year,"
\nZainal said.<\/p>\n
Semen Tonasa was acquired by the state-owned and publicly
\nlisted PT Semen Gresik in August 1995.<\/p>\n
According to the Ministry of Industry and Trade, Indonesia's
\ncement production will increase to 27.2 million tons this year
\nfrom 24.7 million tons last year, while domestic demand is
\nexpected to increase to 28.8 tons from 25.8 million tons. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cement-producers-have-no-reason-to-raise-prices-tunky-1447893297",
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"sponsor": "Okusi Associates",
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