Suba Indah stops production of liquor<\/p>\n
JAKARTA (JP): PT Suba Indah, a manufacturer of sausages,
\ncondiments, spirits, wines and soft drinks, has stopped its
\nliquor production due to Operation Cleansing.<\/p>\n
\"Our liquor sales have been hampered since the operation was
\nintensified in April. We have totally stopped the production of
\nliquor,\" Suba's president Lukman Djuhandi told reporters after
\nattending the company's annual shareholders meeting yesterday.<\/p>\n
He said that because of the unfavorable conditions, about 100
\nworkers have been shifted to other units within the company which
\nis a subsidiary of the Hero Group.<\/p>\n
\"We are trying to avoid dismissals, but we also urge the
\ngovernment to understand our problem,\" he said, adding that Suba
\nemploys more than 600 workers.<\/p>\n
He said that the Ministries of Health, Industry and Trade will
\nsoon set up a coordinating team with domestic liquor
\nmanufacturers to anticipate possible problems caused by Operation
\nCleansing.<\/p>\n
The operation, involving personnel from the Police and Army as
\nwell as officers from the district administration, launched a
\ncrackdown on liquor at shops, supermarkets, manufacturers and
\ndistributors.<\/p>\n
\"Actually Suba has the license for the alcoholic drinks, but
\nthe small, unlicensed plants upset the whole market,\" Suba's
\ndirector Steve Sondakh said, adding that licensed manufacturers
\nactually have the right to do business.<\/p>\n
Last year, the company netted a profit of Rp 5.87 billion
\n(US$2.72 million), up 15.1 percent from 1992's Rp 5.1 billion
\n($2.36 million). Suba's sales reached Rp 43.3 billion in 1993,
\nincreased by 18.5 percent from Rp 36.6 billion in the previous
\nyear.<\/p>\n
According to Lukman, Suba manufactures some 200 items
\nincluding 25 brands such as Fiesta, Sunquick, Marjan Boudoin,
\nHunt's. Only 25 percent of the company's profit in 1993 was
\nderived from liquor products, including the brands Drum, Mansion
\nHouse, Sea Gram and Hakutsuru.<\/p>\n
He said that his company started last year to export about
\nfive percent of the products to Eastern European nations and
\nVietnam.<\/p>\n
\"We will also diversify our business into processed meat and
\nother various beverages,\" he said.<\/p>\n
Suba, established in 1975, wants to lessen the country's
\ndependence on imported food and beverages. Suba was listed at the
\nJakarta and Surabaya Stock Exchanges in December 1991. The
\ncompany's shares are currently traded at around Rp 6,000 and Rp
\n7,200.<\/p>\n
Yesterday's meeting agreed that Suba will distribute cash
\ndividends of Rp 65 per share to its shareholders on August 10.
\n(icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/suba-indah-stops-production-of-liquor-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}