Indocement to raise prices, Indonesia

PT Indocement Tunggal Prakarsa is planning to raise its cement prices in an effort to help offset an increase in subsidised fuel prices.

Indocement’s director, Kuky Permana, told local press that increases have not yet been published as the company is still currently working out new prices. The company’s OPC currently sells at IDR54,000/40kg bag (US$5.3) and IDR64,000/50kg bag.

The Indonesian government has increased the price of subsidized fuel from IDR4500/l to IDR6500/l for Premium gasoline and to IDR5500 for solar diesel fuel.  Indonesia has not implemented a major fuel price rise since 2008, and has some of the lowest prices in the world even after the rise. Because of its heavy subsidies, Indonesia, at the end of 2012 had the lowest fuel prices of any net oil-consuming nation in the world, according to the World Bank.