Builders concerned about cement shortage
Builders concerned about cement shortage
JAKARTA (JP): Builders, crying out over the substantial
increase in cement prices, yesterday urged the government to take
measures to end shortage of supplies of the construction
material.
"Cement prices in the Greater Jakarta area have increased to
about Rp 8,000 (about US$3.7) per 40-kilogram sack, far above the
government-set local price reference of Rp 6,750," Chairman of
the Association of Indonesian Builders (Gapensi) Agus
Kartasasmita told reporters after meeting with Vice President Try
Sutrisno here.
Agus said the government should be more committed to
overcoming the supply problem.
Minister of Industry Tunky Ariwibowo said Thursday that the
country's cement production can actually meet demand but
distributors are taking advantage of market fears of a possible
shortage by raising prices.
Agus said yesterday that the recent price increase is likely
caused by speculation by distributors. "The government should
find out whether the supply shortage is caused by speculators or
a miscalculation of supply and demand," he said.
He said Gapensi executives had discussed this issue with Try,
who wondered why such a cement supply shortage occurs annually.
Indonesia's cement production, which rose from 17.38 million
tons in 1992 to 19 million tons last year, is expected to further
increase to 21.3 million tons this year, while its total annual
production capacity will increase from 20.1 million tons at
present to 22.4 million tons later this year.
Cement prices have increased particularly in Java, where
monthly demand increased substantially to 1.29 million tons in
June from 999,833 tons in the same month a year ago. Utilization
in Java accounts for almost 70 percent of the country's total
cement consumption.
Agus also said yesterday that Gapensi will hold a national
workshop in Batam on Aug. 22 to Aug. 24. The workshop, which will
be opened by the Vice President, will be attended by some 700
executives.
The association has 33,000 members.(icn)