Reducing Price Disparity of Cement in Indonesia, Minister of State Owned Enterprises Launches Cement Price Reduction Programme

Puncak Jaya, 23 August 2017 – As a response and responsibility of the State-Owned Enterprises (SOE) to the public, Minister of SOE Rini M. Soemarmo has launched Cement Price Reduction Programme in Puncak Jaya, Papua on Tuesday (22/8). The programme meant to lower disparity of cement prices in urban areas within Indonesia’s Outlying, Frontier, and Underdeveloped regions.

In her visit, Rini stated that the Cement Price Reduction Programme is an important step for the One Price Programme in Indonesia. “We will keep updating this programme until the development in Eastern Indonesia can be done at a faster pace, together with President Joko Widodo’s work programme which focused on the development of East Indonesian regions,” said Rini. This programme is made possible by the synergy of four SOEs namely Semen Indonesia, Indonesia Trading Company, Pelindo IV and Pos Indonesia.

Using the Cement Price Reduction programme, SOEs will build networks of distributors and logistics in regions that do not have official cement dealers or distributors. Additionally, SOEs will also increase storage capacity of cement dealers in outlying regions, and hasten the development of land and sea/dock infrastructure to support the smooth distribution of cement.

According to Rini, Cement Price Reduction is SOEs’ real step in realising social justice of all Indonesians. “Through this programme, cement prices in some areas in Papua has successfully been lowered from previous Rp1.5-2million per sack to the Highest Retail Price of Rp500 thousand per sack,” said Rini.

Rini further explained that SOE Present for the Country is not a mere slogan to be echoed, but is the spirit and real work of SOEs to keep contributing and being present for Indonesia. “In line with one of SOE’s role as development agency, the synergy of all SOEs through the Cement Price Reduction programme is expected to have a real impact towards the society and in general and encourage economic growth in Puncak Jaya Regency,” adds Rini.

On the same occasion, Puncak Jaya Regent Drs. Henock Ibo expressed on how expensive daily necessities are in Puncak Jaya. Flour, sugar, and cooking oil can cost twice that of Jayapura’s. To overcome that, Rini gave her commitment through the Director of PPI, Agus Andiani, that prices of sugar, flour, and cooking oil will be down by 25% in one month.

During the event, locals welcomed Rini’s presence enthusiastically. That was further reinforced by the presence of two opposing factions in the Puncak Jaya Regent election, together with Rini and board of directors of numerous SOEs from PPI, Semen Tonasa, PT POS, and Bank Mandiri. Appreciation was also given to Puncak Jaya’s Police Chief Police Superintendent Agustinus F. I. Napitupulu and Military District Commander Lieutenant Colonel of Infantry Lukman Arif who has helped in maintaining security in Puncak Jaya, which helped to smooth up the price reduction cement and other staple goods.

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