Multi Bintang will build new brewery<\/p>\n
JAKARTA (JP): PT Multi Bintang Indonesia, one of the major
\nbrewers in Indonesia, plans to set up a new brewery in East Java
\nnext year in a bid to further strengthen its market footholds in
\nthe country.<\/p>\n
Rene Hooft Graafland, the company's president, said on Tuesday
\nthat the planned brewery, which will cost Multi Bintang about
\nUS$820 million, will be one of the most technically advanced
\nHeineken operations in the Asia Pacific region.<\/p>\n
\"The new brewery will replace the existing one in the
\nprovince,\" he told The Jakarta Post following the company's
\nannual shareholders meeting.<\/p>\n
Multi Bintang, 75 percent owned by Heineken Internationaal
\nBeheer BV of the Netherlands, 7.4 percent by another Dutch
\ncompany and about 16.7 percent by the Indonesian public, operates
\ntwo breweries, one in Tangerang, West Java and one in Surabaya.<\/p>\n
Graafland said the replacement of the Surabaya brewery is part
\nof a program to improve its competitive edge in the country's
\nbeer market, which last year booked a modest growth of 20
\npercent.<\/p>\n
He estimated that the growth in the beer market will be flat
\nthis year.<\/p>\n
The government's decision to raise the beer excise, by
\napproximately 30 percent in December last year, will negatively
\naffect the beer market because producers have to raise prices to
\noffset the rise in the excise, he said.<\/p>\n
Levies<\/p>\n
\"Attempts by private enterprises to collect additional levies
\non beer is also creating uncertainty for the beer market,\" he
\nsaid of Arbamass Multi Invesco's alcoholic beverage labeling.<\/p>\n
The politically well connected Arbamass claimed that it had
\nreceived a license from the government to control the liquor
\ntrade in Indonesia, through the sale of stickers to producers.<\/p>\n
Graffland said the move to sell the stickers, worth Rp 600 for
\na bottle of beer, lacked legal basis and that his company would
\ncontinue opposing it, even though the company has, currently, not
\nbeen affected.<\/p>\n
Tuesday's annual shareholders meeting approved the 1994
\nfinancial reports and the company's proposal to pay a cash
\ndividend of Rp 820 (3.7 US cents) per share, of which Rp 185 was
\npaid as an interim dividend in Oct. 3, last year.<\/p>\n
Graffland said that the dividend for the 1994 book year, ended
\non Dec. 31, was within the same level of those distributed last
\nyear, despite a significant growth in the company's net profits.<\/p>\n
\"We have to set aside a significant amount of funds for the
\nconstruction of the new plant in Surabaya,\" he said.<\/p>\n
Multi Bintang's sales rose by 22 percent to Rp 272.93 billion
\nlast year, from Rp 224.39 billion, while the net income increased
\nby about 29 percent to Rp 36.04 billion, from Rp 27.99 billion in
\nthe same period. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/multi-bintang-will-build-new-brewery-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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