House concerned over alcohol monopoly

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)