Imported cement expected to heal acute shortage
JAKARTA (JP): The government decided yesterday to open the gates to imported cement to overcome an acute shortage that is already hampering its development programs.
Coordinating Minister for Political Affairs and Security Soesilo Soedarman, making the announcement at his office yesterday, also promised to punish the speculators hoarding cement in order to profit from the shortages.
On a separate occasion, the dominant Golkar faction in the House of Representatives (DPR) condemned the cement speculators, likening their tactics to those employed by the communists in sabotaging the nation.
The prices of cement have skyrocketed in recent months because of shortages caused partly because of the rising demand from the construction sector, but also aggravated by the speculators.
In Jakarta, a 40 kilogram sack of cement now costs up to Rp 12,000, double the official reference price. In the regions, the sacks could sell for more than Rp 20,000.
The cement shortage was discussed yesterday at the monthly meeting of ministers under Soesilo's charge.
The government feels that reopening imports is the best solution, Soesilo told reporters after the meeting. "We have to take immediate action because the scarcity is threatening the development program."
Commenting on reports of hoarding by speculators, the minister promised to take tough action. "No-one should profit from other people's misery," he said.
Details of the imports will be announced by Coordinating Minister for Industry and Trade Hartarto soon.
Government officials earlier said that despite the increase in the country's production capacity, the cement shortage would likely remain until 1997 in the absence of imports.
Golkar
The Golkar faction of the DPR joined in the condemnation of cement speculators yesterday, saying that the profiteers were employing "communist tricks" to serve their personal interests.
The faction supports the government's plan to take action against speculators, although members question the lack of any clear explanation from the government about the shortage.
The faction's deputy chief, Ali Mursalam, told reporters yesterday that the speculators are undermining the government's economic development drive.
The reference to communists was picked up from remarks by the Golkar chairman, who warned on Wednesday against the latent danger of communism in Indonesia.
On Saturday, Oct. 1, Indonesia marks Pancasila Sanctity Day, which is held to commemorate victory over communism when the nation foiled a coup attempt by the Indonesian Communist Party (PKI).
The coup, launched on the evening of Sept. 30, 1965, was aborted during the following morning thanks to the rapid reaction of Army Maj. Gen. Soeharto, now Indonesia's president. (par/pan)