Where does the cement go?

Where does the cement go?

In some regions there is a cement shortage, again. The
disappearance of this basic commodity has triggered a price hike.
The public is wondering, why is there a shortage of cement every
year? Some suspect that the producers are not honest. By creating
an imbalance between supply and demand, the price of cement will
go up. Still, consumers buy it.

The minister of Public Housing, Akbar Tandjung, argued that
the price hike is caused by the fact that a lot of houses are
being built. But this argument is rejected by the House of
Representatives. Mathematical calculations will show that if one
house needs 50 sacks of cement, the construction of the planned
240,000 houses a year requires only 240,000 tons of cement, as
the Minister said. This is only a small portion of the annual
combined production, of nine factories, of 21.3 million tons.

The shortage of cement has caused great concern, particularly
for those who are engaged in construction works. Both government
and private projects are upset by this cement shortage.

It should be realized that a prolonged cement problem will
cause inflation, which runs counter to the government's program
of curbing inflation. Therefore, the authorities should make a
thorough study of the situation to ensure a better distribution
system in the future.

-- Media Indonesia, Jakarta