Wed, 28 Sep 1994

Skyrocketing cement price

Some argue that the skyrocketing of cement prices and the scarcity of the commodity on the market today is being engineered by a certain party. But who this party is, is not very clear.

It is easy to point the finger at cement producers, while saying that they have purposely limited the supply in order to be able to go over the ceiling price set by the government. But it is not easy to prove this charge.

A possible solution is to lift the ban on importing cement. It is time to end the government's protection as our cement producers have now turned into giant companies. The lift will also serve as a test for cement producers -- whether or not they are able to stand the tough competition in a free market.

In the long run, there might be a need to introduce various qualities of cement. But in the shorter term the government should first overcome the problem of the scarcity of this commodity.

--Bisnis Indonesia, Jakarta