Construction materials in hih demand

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The sales of construction materials in the city increased slightly over the last six months, revealing the growth of construction development amid otherwise gloomy economic conditions in the country.

The sales, particularly of cement, started to increase in March following the huge flooding which swamped the city for days, according to several vendors.

"Before the flooding, I only sold about 20 to 40 sacks of cement a day. After the flooding, I was selling more than 60 a day. Now, the sales have settled down somewhat to about 30 to 50," said Andi, who owns a construction material store in South Jakarta.

Sand for concrete and paint are among the most wanted materials in his store at present.

Most of his customers buy the materials for private use.

He predicted that the situation would last until the end of this year.

"People are using their savings to renovate their homes or to build new ones in flood-free areas," Andi speculated.

Another vendor in the Petamburan area, Ayati, confirmed Andi's statements.

"Consumers continue to buy construction materials although the prices have increased over the last two months," she said.

A sack of cement is sold for between Rp 27,000 and Rp 28,000, and 25-kilogram bucket of paint ranges from Rp 200,000 to Rp 400,000. A cubic meter of sand for concrete can be purchased for about Rp 100,000 in the market.

Earlier this month, the cement industry association (ASI) predicted that domestic consumption of cement would increase this year. ASI data shows that in the first six months of this year, domestic cement consumption reached 12.6 million tons.

Economists supported the prediction, saying that the rise in worker salaries and the banking sector's move to ease requirements on consumer loans had played a big part in boosting domestic cement consumption.

Meanwhile, a marketing agent for a housing developer said that the housing demand is mostly for simple houses with prices below Rp 100 million per unit.

"We were able to sell about 10 homes during our three-day exhibition last month," Kristi said referring to the property exhibition at the Jakarta Convention Center in Central Jakarta.

Meanwhile, Tineke, an exhibition visitor, told The Jakarta Post that her family intended to buy a Rp 70 million house in Bogor this year because they did not want to rent anymore.

"I don't mind buying a house in a suburban area. What's important for me is that I have my own house and no longer rent one. Besides, we couldn't afford to buy a house in a strategic location in the city," said Tineke, who was recently married.