Saturday, January 28, 2006

Construction material price soars


This is the day when the construction material vendors are the KINGs.

Since last month, the construction works amongst the implementing agencies have been on fire. Everyone in Aceh reconstruction is like a participant in the racetrack. All of us are working hard, to complete the work on time. All agencies who work in the reconstruction are craving for construction materials. Timbers, cement, steel rebar, zinc roofing and bricks go through the economic law. The construction material production is not fast enough as the speed of construction. Scarcity of bricks, cement and other material has started to happen. The price goes up with no one to prevent it.

One brick before tsunami which was IDR 300 but nowadays it is IDR 700 each. Even though, it was easily sold out. Payment should be in hard cash. Just like in the stock market, every hour and even every minute, the vendor can change the price. The vendor will give to the best bidder who comes to them with the highest price and with enough money in their pocket.

The nightmare is not over yet. The quality of the brick is poor. Generally, the brick burned within 3 days, to reach its strength. But because the buyer is already in front of their gate, they just burn it in 2 days.

This is too much and has to be stopped. There are 3 things we have to do to end this madness.

First, just stop the work. Stop and watch. We should not have allowed someone to take advantage of making a fool upon us by playing the price. If we follow their game, the price will continue to skyrocket. If other agencies are still willing to dance to their rhythm, let them, it won’t be long; they will be short of cash soon.

Second, we have to buy materials outside Aceh region. We must even pay the transportation cost; the price is still lower compared to the local supplier. And still, we will get better quality bricks.

Third, we produce construction material by ourselves. We just need to find enough space to build our factory and the quarry for material. We can enhance the quality of life of the local people to work with us.

The first idea might be the easiest and the last suggestion is to idealistic. But if we just do one of them, the kings will wake up and smell the coffee.

Arwin Soelaksono - Disaster Response & reConstruction