Domestic beer sales on the rise<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After three straight years of decline, brewer PT Multi Bintang
\nIndonesia's (MBI) domestic beer sales grew last year by 18
\npercent to 110 million liters.<\/p>\n
MBI's sales mirrored the 18 percent growth in the overall
\ndomestic beer market, which totaled 160 million liters, up from
\n135 million liters in 2003.<\/p>\n
"We were not expecting this growth at all. It was quite
\nsurprising," said MBI president director Michiel Egeler, whose
\ncompany is the market leader in beer sales, holding about two
\nthirds of the domestic market.<\/p>\n
Egeler, whose company sells products under the Bir Bintang,
\nBintang Zero, Heineken, Guinness and Green Sands brands, said
\nthat the strong growth came on the heels of increased consumer
\nconfidence and improved purchasing power resulting from the
\neconomy's strong performance.<\/p>\n
"In past years people were not optimistic and since
\nbeer is a luxury product in Indonesia, sales largely depended on
\nthe consumer's level of disposable income," explained Egeler.<\/p>\n
He said that there was still room to grow as Indonesia's per
\ncapita beer consumption was still around 0.6 liters per year, as
\ncompared to Malaysia's 8 liters per year and the Netherland's 80
\nliters per year.<\/p>\n
"Our projection is that the overall beer market will grow by 3
\npercent this year," said Egeler.<\/p>\n
He explained that growth would be significantly less than last
\nyear due to factors such as inflation and the gradual removal of
\nfuel subsidies, which has led to a decline in disposable incomes.<\/p>\n
However, he warned that sales would significantly decline if
\nthe government decided to increase the excise duty of Rp 2,300
\nper liter and 40 percent luxury tax imposed on beer.<\/p>\n
Egeler added that aside from the weak economic growth in past
\nyears, the government's decision in 2001 to increase excise duty
\nwas a significant factor that led to the decline of beer sales
\nfrom 170 million liters in 2001 to 135 million in 2003.<\/p>\n
"The market has only begun to recover from the previous excise
\nduty increase," said Egeler, whose company's beer sales
\ncontributed Rp 687 billion to government revenue last year.<\/p>\n
"We hope the government doesn't increase it this year as it
\nwould be counterproductive." (002)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/domestic-beer-sales-on-the-rise-1447893297",
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"sponsor": "Okusi Associates",
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