Indonesian Political, Business & Finance News

Alcohol stickers are overpriced: Producers

Alcohol stickers are overpriced: Producers

JAKARTA (JP): The row between liquor producers and a private
firm trying to control the industry through compulsory labeling
is intensifying.

Hatta Arpan, chairman of the Association of Alcoholic Beverage
Producers, on Monday accused the company of charging higher
prices for the stickers of alcoholic beverages sold in Central
Java, violating the ruling of the governor.

He said the governor's ruling states that the price of
stickers for drinks with an alcohol content of less than five
percent is Rp 75 (3.5 U.S. cent) per bottle or can of less than
500 milliliters/cubic centimeters.

"However, the private firm which controls the labeling,
charges Rp 112.50 per bottle," Hatta said, referring to PT
Arbamass Multi Invesco, which had been given the authority to
supervise the distribution of alcoholic beverages throughout the
country.

Executives of Arbamass said recently that the supervision is
conducted through the sales of stickers which the company sells
to beverage producers.

Without the stickers, alcoholic drinks cannot be sold or
distributed legally, said Emir Baramuli of Arbamass.

Hatta noted that the price of stickers for drinks with an
alcohol content of over 20 percent, according to the governor's
ruling, is Rp 200 per bottle of less than 500 milliliters, while
Arbamass charges Rp 300.

"We actually support the central governor's ruling on the
labeling of liquor. However, I am unhappy with choice of the
labeling authority being given to a private company, which
charges higher prices," Hatta said, Antara reported in Semarang,
Central Java.

Hatta noted that Arbamass also charges higher prices for
stickers in other provinces which the company already controls.

Arbamass claims that it already controls the distribution of
liquor in East Java, West Kalimantan, Irian Jaya and South
Sulawesi.

Hatta said that members of his association will not pay
anything to Arbamass until the issue of its legality to control
the liquor distribution is settled.

He complained about the circular letter from Arbamass which
stated that starting next month no alcoholic drink can be sold or
distributed legally in Central Java without the stickers from the
company. (rid)

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