Newsprint price to increase 35% next month<\/p>\n
JAKARTA (JP): The producers and consumers of newsprint agreed
\nyesterday on a 35.88 percent increase in the price of newsprint
\nto Rp 2,310 (US1.03) per kilogram for the July-September period,
\nfrom the current level of Rp 1,700.<\/p>\n
\"After next month's price increase, I hope there will be no
\nnewsprint crisis anymore,\" Minister of Industry Tunky Ariwibowo
\ntold journalists after chairing the negotiations between
\nnewsprint producers and newspaper publishers -- the main consumer
\nof newsprint.<\/p>\n
The minister added that the new price of newsprint will only
\nbe effective from July 1 through Sept. 30, which will also affect
\nbook publishers.<\/p>\n
Tunky said the new \"reasonable\" price was expected to attract
\nnew investors to the newsprint industry.<\/p>\n
\"A bigger number of producers will provide more choices to
\nthe consumers and will generate more market competition,\" he
\nadded.<\/p>\n
Indonesia at present has three newsprint producers, the state-
\nowned PT Kertas Leces in East Java , PT Aspex Paper and PT Gede
\nKarang of the Post Kota Group in West Java. However, PT Gede
\nKarang started limited newsprint production only recently for use
\nby its own publishing group.<\/p>\n
On hand at yesterday's negotiations were executives from the
\nAssociation of Pulp and Paper (APKI) and the Association of
\nNewspaper Publishers (SPS) as well as officials from the
\nministries of industry, trade and information.<\/p>\n
\"There were no pressures from any party, and we negotiated
\nfreely,\" Lee Won Je, president of Aspex Paper, said. He added
\nthat the two parties -- SPS and APKI -- will meet again in the
\nfuture to negotiate newsprint prices for October.<\/p>\n
Kusmadi, president of Kertas Leces, said earlier that his
\ncompany's production costs stood at Rp 2,320 per kilogram, while
\nLee hinted that his company's production costs were lower than
\nthose of Kertas Leces but higher than the current newsprint price
\nof Rp 1,700.<\/p>\n
Since mid-1994, local newsprint prices have increased from Rp
\n1,170 a kilo in August to Rp 1,270 for the September-December
\nperiod of last year, up again to Rp 1,320 for the January-March
\nperiod, Rp 1,320 for April, Rp 1,700 for May and June and lastly
\nRp 2,310 for the August-September period.<\/p>\n
President Soeharto suggested on Tuesday that, in view of the
\ncurrent high newsprint price, publishers reduce the number of
\nnewspaper pages rather than raising sale prices.<\/p>\n
Subrata, director general of press and graphics at the
\nMinistry of Information, said the price increase of newsprint
\nwill surely affect newspaper publishers. Small publishers
\nespecially will suffer, as newsprint normally constitutes 30 to
\n35 percent of their total production costs.<\/p>\n
\"I hope this increase will not reduce the number of newspapers
\nor their circulations,\" Subrata said.<\/p>\n
Currently Indonesia has 287 publishers of both newspapers and
\nmagazines, with some 13 million copies in circulation. According
\nto the Ministry of Industry, all the publishers need 12,000 tons
\nof newsprint per month, of which Aspex Paper supplies 10,500 tons
\nand Kertas Leces supplies the rest.<\/p>\n
Leo Batubara, head of SPS's special task force on newsprint,
\nsaid SPS-owned PT Inpers trading firm would be reactivated to
\nhandle newsprint orders from newspaper publishers, especially
\nthose outside Java. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/newsprint-price-to-increase-35-next-month-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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