Liberalize cement prices: Kadin

Liberalize cement prices: Kadin

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) proposed yesterday that the government abolish the local reference prices of cement and ease importation restrictions to balance domestic supply and demand.

"Let the market mechanism balance the supply and demand of cement," Kadin's chairman, Aburizal Bakrie, said in a press conference here.

He said the current government-set local reference prices of cement is useless because the government never reprimands traders selling the construction material above reference prices.

Cement prices frequently jump during the dry season, when demand increases beyond the capacity of local producers and importation is restricted by government decree.

Aburizal said that whenever the local market is in short supply and prices are high, the government should allow cement to be imported.

According to the Ministry of Industry and Trade, Indonesia's cement production is expected to increase from last year's level of 24.7 million tons to 27.2 million tons this year, while demand is projected to rise from 25.8 million tons to 28.8 million tons.

Aburizal also said yesterday that Kadin will hold a national workshop and leadership meeting on Jan. 18 and Jan. 19 to discuss the chamber's long-term plans.

The workshop will be attended by about 700 executives and several cabinet ministers, including Coordinating Minister for Production and Distribution Hartarto, Minister of Finance Mar'ie Muhammad, Minister of Industry and Trade Tunky Ariwibowo and Governor of Bank Indonesia J. Soedradjad Djiwandono.(kod)