Cement producers have no reason to raise prices: Tunky
Cement producers have no reason to raise prices: Tunky
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
assured the public yesterday that there would be adequate
supplies of cement on the domestic market even though prices for
the commodity have recently been on the increase.
"Traders have no reason to increase cement prices because
production is adequate," Tunky said after addressing a seminar on
the promotion and utilization of local products.
Commenting on the upward trend in cement prices in several
cities over the last few days, Tunky said that he has discussed
the pricing issue with members of the Association of Indonesian
Cement Producers.
He said the producers told him that they had no intention of
increasing prices. "Price increases in the market place are
caused by distortions in the distribution system," he said.
He said that the producers promised to increase cement
supplies in towns where prices were increasing due to shortages.
"The best way to solve the problem is to meet cement demands
in the shortage-hit towns so that there is no reason for
distributors to raise prices," he said.
The association's chairman, Soepardjo, who met with Tunky and
several ministry officials on Monday, confirmed that the price
increases were caused by shortages in some towns. However, he did
not say which towns had experienced the supply problems.
Antara reported this week from Semarang, Central Java, that
several cities in the province have seen increases in cement
prices over the last few days from Rp 12,500 (US$5.40) to Rp
14,000 per 50-kg sack. Cement prices have also increased in
Lampung, the news agency reported.
Tonasa
Meanwhile, South Sulawesi Governor Zainal Basri Palaguna said
after meeting with President Soeharto yesterday that on Sept. 10
the President will officially inaugurate the fourth production
unit of state-owned PT Semen Tonasa in Tonasa, South Sulawesi.
The unit will have a production capacity of 2.3 million tons per
year.
"With the operation of Unit IV, Semen Tonasa's plant will have
a total production capacity of four million tons per year,"
Zainal said.
Semen Tonasa was acquired by the state-owned and publicly
listed PT Semen Gresik in August 1995.
According to the Ministry of Industry and Trade, Indonesia's
cement production will increase to 27.2 million tons this year
from 24.7 million tons last year, while domestic demand is
expected to increase to 28.8 tons from 25.8 million tons. (13)