Bali governor annuls beer levy

Bali governor annuls beer levy

JAKARTA (JP): Bali Governor Ida Bagus Oka has revoked a controversial ruling allowing a private firm to impose a levy on sales of alcoholic drinks.

H.S.A. Yussac, a spokesman for the Ministry of Home Affairs, confirmed that the ruling was revoked on Friday.

"Governor Oka has reported the withdrawal of the ruling allowing PT Arbamass Multi Investico to impose a levy on the sales of alcoholic drinks in Bali to Minister of Home Affairs Moch. Yogie S. Memet," he told reporters at his office on Friday evening.

The revoked ruling appointed Arbamass, a private company controlled by Ari Sigit Harjojudanto, the 25-year old grandson of President Soeharto, as a supplier of alcoholic drinks in Bali province.

The appointment, which automatically gave Arbamass the right to collect a levy of Rp 600 per bottle of beer, had been widely debated. Beer producers previously paid only Rp 200 per bottle.

The ruling was not only opposed by beer producers but also by the Indonesian Chamber of Commerce and Industry (Kadin), which branded the levy as against the government's commitment to further deregulate the economy and reduce costs.

The debate peaked late last month when the Association of Indonesian Beer Producers cut off their supplies to Bali in protest. Hotel owners on the resort island also joined in the chorus protesting the levy.

Governor Oka earlier defended the ruling, saying that he had not licensed Arbamass to impose levies on beer sales, but had simply given the firm a permit to be the sole supplier of alcoholic beverages in Bali.

With the revocation of the right given to Arbamass, the coordination of the sales of alcoholic beverages will return to the province's revenue office.

Yussac also said that Oka told the home affairs minister that Arbamass had withdrawn itself as the sole supplier of alcohol in Bali on Feb. 8. (hen)