Papua Has Already Felt The Price of Cheap Cement

One price cement policy is beginning to show the result. The difference in the price of cement that was previously very wide between in Java region compared to Eastern Indonesia has shrunk.
Marine toll program launched by the government is a major contributor in achieving such a fair price. The synergy of state-owned companies such as PT Pelni, Indonesian Trade Company (PPI) and cement-indonesia-tbk> PT Semen Indonesia Tbk (SMGR) helped to accelerate the realization of price reductions
cement in Eastern Indonesia.

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Agung Wiharto, Corporate Secretary of Indonesian cement company, said that the fair price for cement could be felt at least seven districts in Papua, namely Yalimo l, Jayawijaya, Central Mamberamo, Puncak Jaya, Lanny Jaya, Nduga and Tolikara Regency.
Just a note, before there is a policy price reduction, cement in Papua could reach Rp. 500,000 per sack. Now the price of cement is equal to in Java area between Rp 80,000 per sack to Rp 90.000 per sack.
The high price of cement in Papua was due to the high cost of logistics.
"From the factory brought by boat to Timika, then it was proceeded to use the plane to Wamena, then get there by truck into the interior, well it all made it expensive," said Pupung - Agung's call - to KONTAN, Saturday (29/9).

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The demand for cement in Papua is actually not very much. Each year, it is not up to 1 million tons. SMGR regularly sends cement to Timika as much as 60,000 - 70,000 tons per month.
Chairman of the Indonesian Cement Association, Widodo Santoso, said that logistics shipments through the marine lane was the most efficient means of transportation compared to using air routes.
"The marine toll will have a positive impact on the decline of cement prices, especially in Eastern Indonesia," Widodo said.
On the other hand, Managing Director of PT cement Bosowa, Rachmat Kaimuddin, said that to reduce the price of cement in the eastern region quickly achieved needs the involvement of the private sector. This was because the production capacity of cement by state-owned companies is limited.

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