Indonesian Political, Business & Finance News

Ministers step into beer wrangle

Ministers step into beer wrangle

JAKARTA (JP): Two ministers pledged to solve problems related
to the labeling of beer on the resort island of Bali, while the
Indonesian Chamber of Commerce and Industry (Kadin) expressed
concern over such trade regulations in the liberalization era.

"We are summoning all parties involved in the labeling and
sales of beer in Bali to get first-hand information, based on
which we will look for a solution," Minister of Industry and
Trade Tunky Ariwibowo told reporters yesterday after installing
executives and commissioners of state-owned industrial and
trading companies.

Beer producers have stopped supplies to Bali for more than two
weeks in protest against the labeling by PT Arbamass Multi
Invesco, which collects an alcohol levy of Rp 400 (17.3 U.S.
cents) per bottle. Arbamass is a private company controlled by
politically well-connected businessmen Ari Sigit Soeharto and
Emir Baramuli.

Minister of Tourism, Post and Telecommunication Joop Ave said
here Monday that he would investigate the case, which has
affected the hotel and restaurant businesses in Bali.

Kadin's chairman, Aburizal Bakrie, told the press yesterday
that the beer labeling, which indicates the satisfying of trade
regulations policed by a private company under a ruling by the
Bali governor, is ironical because it has been introduced in an
era when the government is liberalizing trade through
deregulatory measures.

Minister Tunky said he had sent a letter to Bali Governor Ida
Bagus Oka, who issued the regulation on the alcohol levy
collection by the private firm.

"So far I haven't received his answer yet," said Tunky.

Sukamdani Sahid Gitosardjono, president of the Sahid hotel
chain management company, said that a long drought of alcoholic
drinks in Bali might affect the country's target to lure more
foreign tourists to the country. (kod)

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