Indocement hike cement prices<\/p>\n
JAKARTA (JP): A rise in cement prices was essential to cover
\nrising production costs, president of the country's largest
\ncement producer PT Indocement Tunggal Prakarsa, said yesterday.<\/p>\n
Sudwikatmono said the rupiah's depreciation against the dollar
\nhad increased the production cost of cement as some raw materials
\nlike gypsum from Thailand and coal from Australia were imported.<\/p>\n
Sudwikatmono said the value of import components in cement
\nproduction reached about 3 percent of the total production cost.<\/p>\n
\"As imported materials were paid in dollars, cement producers,
\nwith the sharp drop in rupiah, should pay more for imports,\"
\nSudwikatmono told reporters at the palace after attending the
\nopening ceremony of the Ministry of Tourism, Post and
\nTelecommunications' work meeting.<\/p>\n
Sudwikatmono said cement producers had increased the factory
\nprice of cement between 3 percent and 5 percent and the move was
\napproved by the Association of Indonesian Cement Producers.<\/p>\n
He said state-owned cement producers like PT Semen Gresik and
\nPT Semen Baturaja had increased the factory price of their cement
\nearlier than Indocement.<\/p>\n
\"Other companies have increased factory prices of their
\ncement. Why can't we follow suit?\" he said.<\/p>\n
Sudwikatmono said the increase in the price of cement had
\ngiven more profit to distributors.<\/p>\n
Sudwikatmono warned cement distributors not to raise the
\nretail cement prices too high since it would have a bad impact on
\nthe public. Indocement was ready to stage market operations to
\nreduce the price if distributors raised it too high.<\/p>\n
\"I guarantee the increase will not have a bad impact on the
\npublic,\" he said.<\/p>\n
Local newspapers reported the retail cement price in several
\ncities in Central Java, for example, increased to between Rp
\n12,500 (US$4.38) and Rp 14,000 per 50-kilogram bag, higher than
\nthe indicative retail price of Rp 10,000 per bag set by the
\ngovernment for the province.<\/p>\n
The government periodically sets the retail price of cement in
\nevery province.<\/p>\n
The Minister of Trade and Industry Tunky Ariwibowo previously
\nwarned cement makers not to increase the cement price amid this
\ntight monetary policy.<\/p>\n
Sudwikatmono said Indocement imported 30,000 tons of cement
\nfrom Japan in anticipation of cement scarcity in the country.
\n(jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indocement-hike-cement-prices-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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