Government to maintain trade restrictions<\/p>\n
JAKARTA (JP): The government will continue to regulate the
\ntrade in a number of commodities to ensure continued marketing
\nand price stability for the benefit of farmers, producers,
\ntraders and consumers, Minister of Trade Satrio B. Joedono said
\nyesterday.<\/p>\n
He told a meeting with the House of Representatives'
\nCommission VII -- which is responsible for finance, trade,
\ncooperatives and logistics -- that the trade regulation is aimed
\nat balancing supply and demand.<\/p>\n
\"The commodities whose trading is still regulated include
\ncloves, fertilizer and cement,\" said Joedono, adding that the
\nregulations are not contradictory to the principles of the World
\nTrade Organization.<\/p>\n
He said the regulation of clove trading is aimed at improving
\nfarmers' welfare. At the same time, the government is encouraging
\nclove farmers to diversify into other crops because clove prices
\nare on the decline, he added.<\/p>\n
\"If, through clove farming diversification, clove supply and
\ndemand have not reached equilibrium by the year 2000, the trade
\nregulation will be extended further,\" Joedono said.<\/p>\n
He said that the regulation of fertilizer trading will also be
\nextended until after the year 2000 because the supply of food,
\nparticularly rice, is essential for the stability of the
\ncountry's economy.<\/p>\n
The minister said that, even though cement prices are
\nvulnerable to increases when demand rises drastically in the dry
\nseason, the government will also continue to regulate its trading
\ndomestically.<\/p>\n
With approval from the government, the Indonesian cement
\nproducers' association determines the areas of distribution among
\nits members, while the government sets local reference prices for
\ncement.<\/p>\n
\"The current instability of cement prices will be able to be
\ncontrolled in 1998, when the construction of new and expansionary
\nprojects has been completed,\" Joedono said.<\/p>\n
By 1998, Indonesia's cement production plants, with a total
\nproduction capacity of about 50 million tons per annum, will
\nproduce 43 million tons per annum, while the country's demand is
\nprojected to be 36.7 million tons per annum, he said.<\/p>\n
He said that PT Semen Padang's annual production capacity will
\nincrease from 3.5 million tons at present to 5.8 million tons by
\n1998, PT Semen Baturaja's will rise from 500,000 tons to 1.2
\nmillion tons, PT Semen Cibinong's will rise from three million
\ntons to 5.5 million tons, PT Indocement Tunggal Prakarsa's will
\nrise from 9.5 million tons to 12.7 million tons, PT Semen
\nNusantara's will rise from 1.5 million tons to 4.1 million tons,
\nPT Semen Gresik's will rise from 4.1 million tons to 8.7 million
\ntons, PT Semen Tonasa's will rise from 1.18 million tons to 3.48
\nmillion tons and PT Semen Kupang's production capacity will rise
\nfrom 530,000 tons to 650,000 tons.<\/p>\n
Joedono also announced yesterday the establishment of several
\nnew cement producers: namely, PT Semen Gombong, with an annual
\nproduction capacity of 1.5 million tons; PT Eraska Semen, with
\n600,000 tons; PT Indocodeco Cement, with 2.4 million tons; PT
\nBalikpapan Daya, with 308,000 tons; PT Prodiso Semen Indonesia,
\nwith 1.5 million tons; and PT Maluku Dinamika Semen, with three
\nmillion tons. (kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-to-maintain-trade-restrictions-1447893297",
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"sponsor": "Okusi Associates",
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