Delta Djakarta building new brewery in Bekasi

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)