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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