Soeharto dedicates two new cement factories
JAKARTA (JP): President Soeharto, amid the current cement crisis, dedicated two cement factories with a combined annual capacity of 3.3 million tons and a urea plant with a capacity of 460,000 tons in a ceremony in East Java yesterday.
On the same occasion, Soeharto also presented awards to the governors of East Java and Central Java and the executives of nine companies, who won this year's national competition for promotion of family planning programs.
The two cement factories dedicated by President Soeharto are the second unit of PT Semen Gresik in Tuban, East Java, with an annual capacity of 2.3 million tons, and the third unit of PT Semen Padang in Indarung, West Sumatra, with an annual capacity of 1.02 million tons. The urea plant, which is owned by the state petrochemical company PT Petrokimia Gresik, has a production capacity of 440,000 tons of ammonia per annum.
The construction of Semen Gresik's plant cost Rp 580 billion (US$266 million), Semen Padang's factory Rp 207 billion and Petrokimia Gresik's urea plant in Gresik, East Java, Rp 500 billion.
"The construction of these very modern factories, which produce million tons of cement annually -- from the designing stage through the installation of plant equipment -- was conducted by local constructors," the President said during the ceremony, which was held at Semen Gresik's industrial complex in Tuban.
Semen Gresik and Semen Padang constructed their cement plants by themselves, while Petrokimia Gresik's urea plant was constructed by PT Inti Karya Persada Teknik, a company controlled by tycoon Muhammad (Bob) Hasan.
Strategic
Soeharto noted that the construction of the two state-owned cement plants has a strategic value as the country is entering the second phase of its long-term (25-year) development plan period, beginning in April.
"Cement produced by these two factories is truly important to support the country's construction activities," the president said.
With the completion of the two cement factories, the country's total cement production capacity has increased to 23 million tons per annum, as compared to the domestic demand of 20.9 million tons.
The cement issue has repeatedly covered the front pages of newspapers since cement supplies started to become scarce in market places last June, resulting in soaring prices in a number of cities where construction activities are very intense.
Prices of cement yesterday were reported to range between Rp 8,000 (US$3.7) and Rp 11,000 per 40-kilogram sack at construction material stores in the greater Jakarta area, far above the government-set local price reference of Rp 5,930. Last week the prices peaked to Rp 12,000 per sack.
The ruling Golkar faction at the House of Representatives (DPR) has appealed to the government and all related parties to take immediate actions to curb the soaring prices. Hamzah Haz, chairman of the United Development Party faction, has made a similar call.
Minister of Investment Sanyoto Sastrowardoyo told a hearing with the House's Budget Commission yesterday that the annual cement crises "will likely remain there" until 1997. (rid) Editorial -- Page 4