Entrepreneurs make money from illegally bottled water

JAKARTA (JP): It's no doubt that Indonesia remains a haven for many different kinds of pirated goods. From world-class watches, handbags, perfumes, to computer software, films and mineral water.

Like in many other multibillion rupiah businesses, a number of simple-minded entrepreneurs have got involved in this easy money- making pirated bottled water business.

Some big producers claim that they are not worried about this illegal activity as fake products still only occupy a small portion of the market.

The problem however lies not only with the earnings of large firms but with the health of consumers as many counterfeit bottled-water products use contaminated water and plastic bottles.

Although the pirating of bottled mineral water has been an important issue over the past five to six years, an independent special team has only just been set up to monitor the mushrooming of this dirty business.

No serious government-initiated efforts have been made so far to stop the illegal production of mineral water, even though the Criminal Code clearly states that the punishment for such illegitimate use of trademarks and copyright is a maximum penalty of seven years in jail and a Rp 100 million fine.

It is more than likely that the authorities are waiting for a group to die from consuming illegally bottled water before acting on behalf of consumers.

On several occasions the police have announced success stories in bringing illegal producers to jail.

In January 1996 for example, police smashed a syndicate of producers and distributors of illegally produced bottled water at a house at Binong Permai housing complex in Tangerang. The four lawbreakers told the police that they simply purified groundwater before bottling it in used plastic bottles purchased from scavengers. They then labeled the bottles with plastic packaging bearing the brands of several well-known products, such as Aqua, A21, Aquarin and Asaba.

In many cases, the water, mostly sold on the street and in kiosks, contain tiny white particles, mucus, or have a thin layer of sediment at the bottom of the plastic bottles. A reader of Kompas once commented on fungi that they found in bottled water.

"That's why we repeatedly ask consumers to not buy mineral water which is from a bottle or cup that is heavily covered in condensation because under such conditions it's often difficult to see any strange particles in the water," Tini Hadad, a senior executive of the Indonesian Consumers Foundation (YLKI), said.

Tini, however, admitted that many people are usually attracted by the refreshing look of condensation-covered bottles.

Reports said that some of the 200 bottled water products, usually labeled "mineral water", utilize used bottles, claiming that germs or bacteria in the plastic have been eradicated after being exposed to high temperatures.

Laboratory tests on bottles used by five different brands conducted by YLKI a few years ago found coliforms, bacteria and microbes, including those from human feces.

It's no surprise as the used bottles were collected by scavengers from unhygienic places, such as gutters and rubbish bins.

Willy Sidharta from the Indonesian Bottled Drinking Water Companies Association (Aspadin) said the mushrooming amount of illegally produced bottled water on the market would damage public trust towards genuine products on the market.

"Then, it will affect the producers," said Willy, who is also director for industrial affairs of PT Golden Aqua Mississippi, the leading drinking water producer in the country.

Last week, the Jakarta City Council planned to arrange a meeting with YLKI executives and police officers to discuss how to handle the issue.

"We have to stop this practice so that the public will not suffer any more losses," said councillor Edy Suchro A. Djalal. (bsr)

Some of Indonesia's leading mineral water manufacturers

(Company, Brandname, Annual production capacity in million liters): PT Aqua Golden Mississippi, Aqua, 1,754; PT Ades Alfindo, Ades, 600; PT Tang Mas, 2 Tang Mon Air, 33.4; PT Tirta Mas Megah, Total, 28.8; PT Tirta Bahagia, Club, Viand, JJ, 18; PT Waterindex Tirta Lestari, Grand, 17.5; PT Santa Rosa Indonesia, Oasis, Avion, 4.2; PT Lima Gajah Tirta Persada, Qualiva, Alvaqua, 0.9.

Note: The 1999 data above is from the Ministry of Industry and Trade. The performance of other big players in the business, such as PT Varia Industri Tirta (VIT), and PT Sinar Sosro (Prim-A) is currently unavailable.