Firm measures required<\/p>\n
The problem of cement scarcity and the consequent rise in
\nprices continues with no clear solution in sight. This newspaper
\nbelieves that only President Soeharto, as head of the government
\nof the Republic of Indonesia, will be able to surmount the
\nproblem of cement scarcity which has caused the price of this
\ncommodity to soar in the past few months. This year's cement
\ncrisis has probably lasted longer than any we have experienced in
\nthe last ten years.<\/p>\n
Certain parties have proposed that the level of government
\napproved standard prices be raised, in effect benefiting cement
\nproducers. Others, however, favor maintaining current prices, a
\nlevel that has clearly proven profitable for producers. According
\nto the manufacturer's own financial calculations, cement
\nproducers are already reporting more than 30 percent in profits,
\nuncommonly high even for most big businesses.<\/p>\n
Cement producers have also proposed abolishing the government
\nset standard pricing system all together, favoring reliance on
\nmarket mechanisms. In light of the fact that one producer already
\ncontrols 45 percent of the market in Indonesia, this is no
\nsolution either. Such domination would certainly distort prices,
\nprecluding any possibility of free market fairness.<\/p>\n
Given the gravity of the cement scarcity problem this year,
\nthe most promising hope for surmounting the difficulties lies
\nwith President Soeharto. We are confident that if President
\nSoeharto decides to intervene on behalf of the nation's
\ninterests, the well being of everyone will be secured.<\/p>\n
-- Kompas, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/firm-measures-required-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }