House concerned over alcohol monopoly

JAKARTA (JP): House of Representatives members expressed concern yesterday over the appointment of PT Tebet Indraya as the sole distributor of alcoholic drinks in the country.

"Allowing only one distributor could increase spirit prices and result in the deteriorated quality of services to consumers," said Lili Asdjudiredja, vice chairman of House Commission VI for industry, mining, manpower and investment.

Lili, a Golkar representative, was commenting on a letter from the Indonesian Association of Hoteliers to the state-owned company PT Rajawali Nusantara Indonesia -- the country's sole importer of alcoholic drinks which appointed Tebet Indraya to be its sole distributor.

In the letter, dated Sept. 13, the association stated, among other things, its objection to the appointment of Tebet Indraya.

Lili said that the monopoly will hurt the interests of the association's members and could encourage the smuggling of alcoholic drinks into the country.

Rajawali Nusantara, a diversified business group, responded by saying that the appointment was made to help prevent smuggling.

The company added that its decision to appoint Tebet Indraya was approved by the Ministry of Industry and Trade. The ministry gave its approval because, he said, the business of alcoholic drinks is complicated and hampered by illegal levies.

"The appointment can be reviewed next fiscal year," the statement said.

However, commission deputy chairmen Budi Hardjono and Muchsin Bafadal, respectively from the Indonesian Democratic Party and the United Development Party, shared Lili's view, saying that monopolies in the country should be eradicated because they result in unhealthy competition and harm public interests. (13)