Delta Djakarta building new brewery in Bekasi

JAKARTA (JP): PT Delta Djakarta, a publicly listed brewery, is building a 16-hectare plant in Bekasi of West Java with a total investment of US$62.8 million for the relocation of its Jakarta plant.

Rubian Harahap, a director at Delta Djakarta, said after attending the company's shareholders' meeting at Sangri-La Hotel yesterday that 50 percent of the investment would be financed by loans from a number of domestic and foreign banks.

He said the new brewery, which will have an annual production capacity of 900,000 hectoliters, will be in commercial operation in early 1997.

"We will soon move our facilities in Bandengan of West Jakarta to Bekasi because our current brewery cannot accommodate our growth anymore. Besides, everyday there are traffic jams in Bandengan," Rubian said.

Delta's brewery and office facilities in Bandengan covers a five-hectare plot and has an annual production capacity of 600,000 hectoliters of beer.

At yesterday's meeting, Delta Djakarta reported a net profit of Rp 16.5 billion (US$7.36) last year, up by 37.8 percent from the previous year's Rp 11.9 billion.

Rubian said his company would distribute 29 percent of its total net profit, or Rp 350 per share, in cash dividends. Retain earnings went up by Rp 13 billion last year and equity at year- end made up 60.2 percent of the balance sheet total of Rp 80.18 billion.

Delta Djakarta, which produces beer with the brand names of Anker Bir, Anker Stout, Shanta Super Shandy and Carlsberg Beer, is 49 percent owned by San Miguel Malaysia (L) Private Ltd., 30 percent by the municipal government of Jakarta and 21 percent by public shareholders.

Rubian said his company expected a growth of some 15 percent to 20 percent in profits this year. He added that the projection was based on a few considerations, including the government's initiative to impose a stricter control on the distribution of alcoholic beverages last year and the increase of the excise duty from Rp 500 per liter to Rp 650, which became effective on Dec. 1 last year.

Levies

Toward the later part of last year, Rubian added, some provincial administrations issued local regulations imposing regional levies on the sales and distribution of alcoholic beverages including beer.

"In certain areas, attempts were made by private companies to collect such levies with considerable additional charges, creating confusion and uncertainty in the business operations and trading in the areas concerned. These questionable attempts have been opposed by the beer industry," Rubian said.

The issue on levies broke out early this year when PT Arbamas Multi Invesco, which is controlled by President Soeharto's grandson Ari Sigit, attempted to control liquor trade and distribution in a number of provinces.

However, the issue died down after those involved in the beer industry opposed the move.

Rubian said a number of private enterprises wrestled to control beer distribution in a number of provinces, including Riau, Lampung and West Kalimantan.

"I don't mind helping local administrations by paying the additional regional levies on liquor as long as it is conducted by themselves, not contracted to private companies, and the fund is included in their annual budgets," Rubian said. (rid)