Beer producers protest Arbamass' labeling move
Beer producers protest Arbamass' labeling move
JAKARTA (JP): Indonesian beer producers said yesterday they stopped supplies to Bali ten days ago in protest against the high alcohol levy collected by PT Arbamass Multi Invesco, a private company.
The beer department of the Association of Beverage Producers complained at a press conference here that local beer sold in Bali, Indonesia's most popular tourist destination, has been levied at Rp 400 (17.3 U.S. cents) per bottle by Arbamass.
"The levy we have to pay to the private company is twice as large as the levy collected by the provincial government," Rubian Harahap, an association executive, said.
The beer brewers, he added, cannot understand why a private company has been authorized by the local administration to collect such a high levy for beer and other alcoholic drinks.
"Why do we have to pay the levy to Arbamass ? We cannot sell our beer in Bali without putting it's levy stickers on our beer," Harahap complained.
He added that 60 percent of the beer producers' sales revenues are swallowed by government taxes and levies, such as the 10 percent value added tax, 35 percent luxury sales tax and the Rp 650/liter excise tax.
"So why do we have to pay Rp 200 per bottle for the regional levy and another Rp 400 per bottle to the private company ?" he asked.
Rubian estimated that beer producers paid the government about Rp 350 billion in excise tax alone last year.
Arbamass is reportedly controlled by politically well- connected businessmen Ari Sigit Soeharto and Emir Baramuli.
Authority
According to a director of PT Multi Bintang, Sedyana Pradkasantosa, Arbamass was authorized by the governor of Bali last November as the sole distributor of beer in Bali.
"Other distributors or dealers are obliged to purchase Arbamass levy stickers before they can sell beer and alcoholic drinks in Bali," Sedyana added.
Sedyana added that the Bali military district command recently confiscated approximately 100 crates of "Bir Bintang" beer, a product of PT Multi Bintang, as they were being sold without Arbamass levy stickers.
Sedyana contended that the private company provides nothing in return for the high levy it collects from beer and other alcoholic drinks.
Sedyana said beer brewers had urged the Bali governor to revoke the authority granted to Arbamass to collect the Rp 400/bottle levy, because the private company served no purpose.
The beer companies -- PT Multi Bintang Indonesia, PT Delta Djakarta and PT Balihai -- warned the governor that the levy raised beer prices and could affect the tourism industry in Bali.
"We will abide by any rules issued by the government, but not a private company," Harahap said.
Rene Hooft Graafland of PT Multi Bintang said that two of the largest beer brewers are public companies which are partly owned by foreign investors.
Therefore, according to Graafland, the case may affect Indonesia's image in the eyes of foreign investors.
"I would say that the impact of this case will create a negative impression of legal certainty in the country," he added..
"But it might be premature to consider the relocation of beer plants," Graafland said.
According to Harahap, beer and alcoholic drinks in West Kalimantan, Lampung and Riau have also been subject to the "private" levy as the one in Bali. (08)