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)