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)