Imported cement expected to heal acute shortage

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)