Soeharto dedicates two new cement factories

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