Saturday, May 13, 2006

Brick price plummet


After climbing for several months, nowadays brick price is plunge. Last January the price was double than before tsunami, it was reached 700 Rupiah. But currently we can buy 500 Rupiah each.

The contractors and NGOs who work in reconstruction purchase brick out side this region. This tsunami area was receiving brick from Bireun and Medan. Even though the transportation cost is expensive, the price of brick on site still cheaper compare with local bricks.

The brick business was attracted to some people who saw the opportunity. They opened home business based brick factory. Some NGO working with them as a livelihood program. The result is good. The supply is getting bigger and suit with the demand. Then the economic law is effective, all prices get down.

But the problem of high price is still there. In some area they force NGOs and contractors to buy their bricks. They are serious with their threat, by blocking the trucks which bring bricks which bought not from them. This harassment from the local supplier has an economic terminology, they call it, protection.

Arwin Soelaksono - Disaster Response & reConstruction