Firm measures required

The problem of cement scarcity and the consequent rise in prices continues with no clear solution in sight. This newspaper believes that only President Soeharto, as head of the government of the Republic of Indonesia, will be able to surmount the problem of cement scarcity which has caused the price of this commodity to soar in the past few months. This year's cement crisis has probably lasted longer than any we have experienced in the last ten years.

Certain parties have proposed that the level of government approved standard prices be raised, in effect benefiting cement producers. Others, however, favor maintaining current prices, a level that has clearly proven profitable for producers. According to the manufacturer's own financial calculations, cement producers are already reporting more than 30 percent in profits, uncommonly high even for most big businesses.

Cement producers have also proposed abolishing the government set standard pricing system all together, favoring reliance on market mechanisms. In light of the fact that one producer already controls 45 percent of the market in Indonesia, this is no solution either. Such domination would certainly distort prices, precluding any possibility of free market fairness.

Given the gravity of the cement scarcity problem this year, the most promising hope for surmounting the difficulties lies with President Soeharto. We are confident that if President Soeharto decides to intervene on behalf of the nation's interests, the well being of everyone will be secured.

-- Kompas, Jakarta