Bali governor annuls beer levy<\/p>\n
JAKARTA (JP): Bali Governor Ida Bagus Oka has revoked a
\ncontroversial ruling allowing a private firm to impose a levy on
\nsales of alcoholic drinks.<\/p>\n
H.S.A. Yussac, a spokesman for the Ministry of Home Affairs,
\nconfirmed that the ruling was revoked on Friday.<\/p>\n
\"Governor Oka has reported the withdrawal of the ruling
\nallowing PT Arbamass Multi Investico to impose a levy on the
\nsales of alcoholic drinks in Bali to Minister of Home Affairs
\nMoch. Yogie S. Memet,\" he told reporters at his office on Friday
\nevening.<\/p>\n
The revoked ruling appointed Arbamass, a private company
\ncontrolled by Ari Sigit Harjojudanto, the 25-year old grandson of
\nPresident Soeharto, as a supplier of alcoholic drinks in Bali
\nprovince.<\/p>\n
The appointment, which automatically gave Arbamass the right
\nto collect a levy of Rp 600 per bottle of beer, had been widely
\ndebated. Beer producers previously paid only Rp 200 per bottle.<\/p>\n
The ruling was not only opposed by beer producers but also by
\nthe Indonesian Chamber of Commerce and Industry (Kadin), which
\nbranded the levy as against the government's commitment to
\nfurther deregulate the economy and reduce costs.<\/p>\n
The debate peaked late last month when the Association of
\nIndonesian Beer Producers cut off their supplies to Bali in
\nprotest. Hotel owners on the resort island also joined in the
\nchorus protesting the levy.<\/p>\n
Governor Oka earlier defended the ruling, saying that he had
\nnot licensed Arbamass to impose levies on beer sales, but had
\nsimply given the firm a permit to be the sole supplier of
\nalcoholic beverages in Bali.<\/p>\n
With the revocation of the right given to Arbamass, the
\ncoordination of the sales of alcoholic beverages will return to
\nthe province's revenue office.<\/p>\n
Yussac also said that Oka told the home affairs minister that
\nArbamass had withdrawn itself as the sole supplier of alcohol in
\nBali on Feb. 8. (hen)<\/p>",
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