Retailers substantially raise cement price<\/p>\n
JAKARTA (JP): Many city retailers have raised the price of
\ncement beyond the recent government-decreed 40 percent price
\nincrease.<\/p>\n
As of yesterday, five days after the official price rise, the
\nretail price of cement was between Rp 8,500 and Rp 9,500 (US$3.80
\nand $4.30) per 40-kilogram sack, well above the new government-
\nset reference price of Rp 8,290.<\/p>\n
Some retailers said that, although their stocks were
\nexhausted, they would not buy more cement for the time being
\nbecause, they said, the current situation was unpredictable.<\/p>\n
\"The price can go up or down at any time in such a situation,
\neven though the government has set the local reference price,\"
\nsaid a representative of the retailer Buana Indah in Karawaci,
\nTangerang, 35 kilometers west of the Jakarta.<\/p>\n
\"It seems to us that everyone wants to wait until the current
\nsituation -- in which many parties are trying to speculate --
\nreturns to normal,\" he said.<\/p>\n
Therefore, he said, he was allowing his cement stocks to
\nremain at zero yesterday.<\/p>\n
\"Moreover, the number of buyers is still low,\" he said.<\/p>\n
The price of cement in Karawaci reached Rp 9,500 per sack
\nyesterday.<\/p>\n
Last Friday, the ministry of trade increased the reference
\nprices of cement by between 20.39 percent and 45.50 percent.<\/p>\n
The reference price in Jakarta, as in other areas in Java, was
\nraised to Rp 8,290 per sack, as compared with the previous
\nreference price of Rp 5,930.<\/p>\n
Several days before the government's announcement, the price
\nof cement had already reached Rp 8,000 per sack.<\/p>\n
Another retailer said that he could supply a huge amount of
\ncement -- at a price of Rp 9,500 per sack.<\/p>\n
\"I've been informed that some retailers in the city have
\nfurther increased the price due to their limited stocks,\" he
\nsaid.<\/p>\n
\"But I can assure you that I have enough stocks available at
\nmy reliable distributors,\" he added.<\/p>\n
The cement price rise has already led to an increase in the
\nprice of many related construction goods.<\/p>\n
Speculation on the possibility of a rise in the cement price
\nnormally lasts until producers and distributors are able to
\nsatisfactorily distribute the commodity to meet market demands,
\nretailers told The Jakarta Post yesterday.<\/p>\n
Speculators continued to play a significant role in deciding
\nthe price of cement, they said.<\/p>\n
According to the Jakarta-based Indonesian Foundation of
\nConsumers, the retail price of cement is always 15 to 20 percent
\nabove the government-set reference price.<\/p>\n
\"Given that fact, it's clear enough that the government can no
\nlonger set the price and that the local reference price has no
\npower in the market,\" said Zumrotin K. Susilo, who chairs the
\nfoundation.<\/p>\n
Consumers are bored with the government's arguments in favor
\nof price-fixing, according to Zumrotin.<\/p>\n
Therefore, she urged the government to let the market set the
\ncement price and to remove the import duty on cement.<\/p>\n
At the same time, Zumrotin called on the city authorities to
\nlaunch a massive operation to check the prices being asked by
\ncity retailers and to punish violators harshly. (bsr)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/retailers-substantially-raise-cement-price-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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