Producers hail plan to ax beer levy in Bali
Producers hail plan to ax beer levy in Bali
JAKARTA (JP): Indonesian beer producers welcomed the
government's plan to resolve the dispute on levy stickers in Bali
and hoped that it will be realized as soon as possible.
The chairman of the beer department of the Association of
Beverage Producers, Rubian Harahap, told The Jakarta Post that
they really appreciated the government's response to the dispute.
On Thursday, Minister of Industry and Trade Tunky Ariwibowo
told reporters after an unscheduled meeting with President
Soeharto that he had been ordered to stop the private company PT
Arbamass Multi Invesco from collecting levies on beer sales on
the tourist island of Bali.
"We are very pleased that the government has taken into
consideration what we say. I would also thank the mass media for
their impartial reports on the dispute. I'm sure that such
reports have made the government realize what is going on," said
Rubian, who is also a director of PT Delta Djakarta.
Furthermore, Rubian said that the minister's statement came
earlier than expected because Bali Governor Ida Bagus Oka has yet
to answer the association's letter sent two weeks ago.
The commercial director of publicly-listed PT Multi Bintang,
Sedyana Pradjasantosa, told the Post that government's move
reflects its strong commitment to create a fair business climate
in the country.
"I would say that the minister's statement means that the
government wants to end the dispute not only in Bali but also in
other provinces," he said.
Data from the association said that beer and alcoholic drinks
in West Kalimantan, Lampung and Riau have also been subject to
the "private" levy like the one in Bali.
Sedyana underlined that beer producers actually did not suffer
too much just because of the levy stickers.
"Our main concern is not the losses we have suffered but how
to do business fairly based on an equal, legal treatment," he
said.
"It becomes more critical for us because Multi Bintang and
Delta Djakarta are public companies controlled by foreign
investors who are very sensitive about legal issues," he added.
He said that the consumption of domestically-made beer in Bali
is estimated at seven million liters per annum. The island
represents 10 percent of the total beer market in the country.
Rubian also noted that the boycott of beer distribution in
Bali during the last there weeks may have reduced the incomes of
their distributors' employees in Bali, who usually get commission
fees based on sales, in addition to their regular salaries.
Meanwhile, the vice governor of Bali, Ahim Abdurahim, said on
Friday that they are now preparing a comprehensive report for the
minister of industry and trade to explain that Arbamass has been
legally appointed as the sole beer distributor for Bali based on
the governor's regulation No. 521/1994.
He was quoted Saturday by Kompas as saying that the governor's
regulation was actually based on a circular letter issued by the
director general of regional autonomy to provincial authorities,
issued in February 1994.
Ahim said that the letter authorized Arbamass as the sole
distributor in West Kalimantan, Bali, Irian Jaya and South
Sulawesi.
"I will also tell the minister that it is the local
administration which collects the levies. But in practice, we are
helped by our partner, Arbamass," he said.
He promised that the local administration will later take over
the job currently done by Arbamass if the minister wants it to do
so. But he warned that it would be more difficult to meet the
income target of Rp 1 billion (US$432,900) from beer levies as
stated in the provincial budget plan.
Ahim, who is also a former military official, added that it is
normal for Arbamass to sell its levy stickers at 200 percent
higher than the local levy.
The stickers have a face value of Rp 200 each, but Arbamass
reportedly sells them at Rp 600.
"It was a result of a pure market mechanism," Ahim contended.
(08)