Proceedings of the International Conference on Trade 2019 (ICOT 2019)

Barriers to the Implementation of One-Price Policy on Cement Commodities and Possible Policy Options

Authors
Avif Haryana, Yati Nuryati, Dwi Wahyuniarti Prabowo
Corresponding Author
Avif Haryana
Available Online September 2019.
DOI
10.2991/icot-19.2019.9How to use a DOI?
Keywords
cement, price disparity, one-price policy, cost and benefit analysis
Abstract

This study aims to address barriers that will arise if a single price cement policy is implemented and propose policy to reduce cement prices disparity between regions. Questionnaires and Focus group Discussion (FGD) are the instruments to collect data. These data were analysed using Regulatory Impact Assesment (RIA). The study found that the cement price disparity only occurs in some remote and border areas where logistics facilities are left far behind. Also, it was found that one price cement policy would be difficult to be implemented. The reasons were due to six barriers: (i) logistical costs from factories to consumers; (ii) differences in the policies for regulating freight transport that vary between regions; (iii) production centers in Java while consumption spread throughout Indonesia; (iv) ownership status of private cement factories; (v) limited of frequency transportation and variation of transportation modes; (vi) consumers' perceptions of cement brands vary in each region. However, from the perspective of CBA of RIA approach, there are only two policies that need to be considered seriously: regional targeted subsidy and ceiling regional retail price policies. This study recommends that regional targeted subsidy can be implemented to target region example Papua as the best option policy.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference on Trade 2019 (ICOT 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
September 2019
ISBN
978-94-6252-798-0
ISSN
2352-5428
DOI
10.2991/icot-19.2019.9How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Avif Haryana
AU  - Yati Nuryati
AU  - Dwi Wahyuniarti Prabowo
PY  - 2019/09
DA  - 2019/09
TI  - Barriers to the Implementation of One-Price Policy on Cement Commodities and Possible Policy Options
BT  - Proceedings of the International Conference on Trade 2019 (ICOT 2019)
PB  - Atlantis Press
SP  - 39
EP  - 42
SN  - 2352-5428
UR  - https://doi.org/10.2991/icot-19.2019.9
DO  - 10.2991/icot-19.2019.9
ID  - Haryana2019/09
ER  -