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Jakarta. The Indonesia Cement Association on Thursday denounced a recommendation by the Business Supervisory Commission that it be disbanded to avoid the possibility of price-fixing.

The recommendation came the day after the commission, also known as the KPPU, cleared eight cement producers of charges of collusion.

But it said the association should be dissolved because of fears it could “provide room for possible cartel practices.”

Urip Timuryono, chief of the cement group, also known as the ASI, said he was pleased the firms had been cleared but was confused by the KPPU’s order, saying his association had always avoided cartel practices.

The commission’s findings marked the end of a six-month investigation into claims that cement producers had been involved in price-fixing, resulting in losses for consumers and businesses.

The KPPU said there was no evidence the companies conspired to manipulate production volumes, distribution systems or the price of cement.

Commission member Tri Anggraini said obtaining proof had been difficult.

“We could have gotten more evidence if we had the authority to install wiretaps and conduct raids,” he said.

Tri accused the ASI of hindering the probe by providing data full of discrepancies.

Urip denied Tri’s claims, saying the data was probably provided by the individual producers. “The KPPU never talked to us about any differences,” he said.

Jannus O. Hutapea, director for legal affairs at Holcim Indonesia, one of the accused cement producers, also welcomed Wednesday’s decision.

“We always support government regulating healthy business rivalry,” Jannus said.

Teguh Satria, head of the Real Estate Developers Association (REI), which made the initial complaint, said he expected cement prices to remain stable after the ruling. “As long as prices don’t go higher, we’re OK,” Teguh said. He said he would urge the government to allow cement imports if prices rise again.

Domestic cement costs about Rp 52,000 ($6) for 50 kilograms, according to Teguh.

“Prices have been steady since we reported the case, while the price rose from Rp 38,000 up to Rp 50,000 per 50 kilograms at the beginning of 2009,” he said.

Teguh said cement accounted for 20 percent of building costs.

According to KPPU data, the eight suspected cement producers manufactured only 35.4 million tons in 2008, just 62 percent of capacity. Meanwhile, cement demand for that year had been 38.8 million tons.

The commission said all eight firms produced gray cement, mostly used for houses, bridges and high buildings.

The cement makers probed were Semen Gresik, Indocement Tunggal Prakarsa, Holcim Indonesia, Semen Baturaja, Lafarge Cement Indonesia, Semen Tonasa, Semen Padang and Semen Bosowa Maros.

Semen Gresik controls 43 percent of the market, followed by Indocement Tunggal Prakarsa with 32 percent.