Soeharto dedicates two new cement factories<\/p>\n
JAKARTA (JP): President Soeharto, amid the current cement
\ncrisis, dedicated two cement factories with a combined annual
\ncapacity of 3.3 million tons and a urea plant with a capacity of
\n460,000 tons in a ceremony in East Java yesterday.<\/p>\n
On the same occasion, Soeharto also presented awards to the
\ngovernors of East Java and Central Java and the executives of
\nnine companies, who won this year's national competition for
\npromotion of family planning programs.<\/p>\n
The two cement factories dedicated by President Soeharto are
\nthe second unit of PT Semen Gresik in Tuban, East Java, with an
\nannual capacity of 2.3 million tons, and the third unit of PT
\nSemen Padang in Indarung, West Sumatra, with an annual capacity
\nof 1.02 million tons. The urea plant, which is owned by the state
\npetrochemical company PT Petrokimia Gresik, has a production
\ncapacity of 440,000 tons of ammonia per annum.<\/p>\n
The construction of Semen Gresik's plant cost Rp 580 billion
\n(US$266 million), Semen Padang's factory Rp 207 billion and
\nPetrokimia Gresik's urea plant in Gresik, East Java, Rp 500
\nbillion.<\/p>\n
\"The construction of these very modern factories, which
\nproduce million tons of cement annually -- from the designing
\nstage through the installation of plant equipment -- was
\nconducted by local constructors,\" the President said during the
\nceremony, which was held at Semen Gresik's industrial complex in
\nTuban.<\/p>\n
Semen Gresik and Semen Padang constructed their cement plants
\nby themselves, while Petrokimia Gresik's urea plant was
\nconstructed by PT Inti Karya Persada Teknik, a company controlled
\nby tycoon Muhammad (Bob) Hasan.<\/p>\n
Strategic<\/p>\n
Soeharto noted that the construction of the two state-owned
\ncement plants has a strategic value as the country is entering
\nthe second phase of its long-term (25-year) development plan
\nperiod, beginning in April.<\/p>\n
\"Cement produced by these two factories is truly important to
\nsupport the country's construction activities,\" the president
\nsaid.<\/p>\n
With the completion of the two cement factories, the country's
\ntotal cement production capacity has increased to 23 million tons
\nper annum, as compared to the domestic demand of 20.9 million
\ntons.<\/p>\n
The cement issue has repeatedly covered the front pages of
\nnewspapers since cement supplies started to become scarce in
\nmarket places last June, resulting in soaring prices in a number
\nof cities where construction activities are very intense.<\/p>\n
Prices of cement yesterday were reported to range between Rp
\n8,000 (US$3.7) and Rp 11,000 per 40-kilogram sack at construction
\nmaterial stores in the greater Jakarta area, far above the
\ngovernment-set local price reference of Rp 5,930. Last week the
\nprices peaked to Rp 12,000 per sack.<\/p>\n
The ruling Golkar faction at the House of Representatives
\n(DPR) has appealed to the government and all related parties to
\ntake immediate actions to curb the soaring prices. Hamzah Haz,
\nchairman of the United Development Party faction, has made a
\nsimilar call.<\/p>\n
Minister of Investment Sanyoto Sastrowardoyo told a hearing
\nwith the House's Budget Commission yesterday that the annual
\ncement crises \"will likely remain there\" until 1997. (rid)
\nEditorial -- Page 4<\/p>",
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