Set lower paper prices for textbooks: Tunky
Set lower paper prices for textbooks: Tunky
JAKARTA (JP): Minister of Industry Tunky Ariwibowo called on local pulp and paper producers Tuesday to set lower prices for paper used for the production of textbooks.
"In a time like now, when international prices of pulp and paper are very high, we ask them to share the windfall profits with the people, especially students," Tunky said after reporting to President Soeharto.
Tunky explained that international prices for pulp currently reached highs of between US$800 and $900 per ton, sharply rising from a range of between $260 and $300 per ton two years ago.
Domestic prices of newsprint surged from Rp 1,320 per kilogram in the January-March period to Rp 1,600 last April and went up again to Rp 1,700 a kilogram this month. The prices of HVS paper, also rose to a range of between Rp 2,600 and Rp 2,800 a kilogram.
He said that domestic prices of newsprint and HVS paper are still lower than international prices. The current price of imported newsprint is US$880 per ton or Rp 1,960 per kilogram, while the price of imported HVS paper is Rp 2,870 a kilogram.
A number of parties, especially educators and intellectuals, have voiced their concern over the steep price increases of newsprint and other types of papers, saying that this could threaten the reading habits and ultimately the education of Indonesian children.
Tunky said he has summoned the Association of Indonesian Pulp and Paper to discuss the matter. "But we haven't yet reached an agreement," he said.
He has also reported the problem to Soeharto and was advised to do his best to help the students.
Tunky indicated, however, that he will not take drastic measures to compel paper factories to bow to the government's appeal, saying that this would be counterproductive in terms of the country's investment policy image.
"Don't forget that we have to attract more private investment, and that's why we have to keep our policy consistent," Tunky contended.
Currently there are 62 pulp and paper producers operating in Indonesia with a total installed capacity of 2.9 million tons for pulp and 3.8 million tons for paper.
Tunky acknowledged that the production of pulp and paper is still dominated by private-sector companies, mainly Sinar Mas Group, Raja Garuda Mas and Aspex Paper.
"Currently we have only the state-owned PT Leces paper company. But the government will strengthen control over the paper industry through a regulation which will be introduced soon. And, of course, the continuity of the industry in the long run will be considered," Tunky said.
He projected that the country's total demand for paper of all types will reach 2.26 million tons this year. Of the projected demand, newsprint demand might reach only 150,000 tons, or seven percent of the total demand.
Indonesia's newsprint is supplied by Aspex, which has a monthly production capacity of 16,000 metric tons, and Leces with a capacity of 3,000 tons. Aspex exports part of its products, while Leces has recently reduced its newsprint capacity in favor of higher quality paper. (rid)