Soeharto stops beer levy

Soeharto stops beer levy

JAKARTA (JP): President Soeharto yesterday ordered Minister of
Industry and Trade Tunky Ariwibowo to stop the private company PT
Arbamass Multi Invesco (AMI) from collecting levies on beer sales
on the tourist island of Bali.

"It is against the law for a private company to collect levies
from the public," Tunky told the press after an unscheduled
meeting with President Soeharto yesterday.

A number of local beer producers have stopped supplying beer
to Bali for the last two weeks to protest the collection of
levies through a labeling arrangement by AMI, which is controlled
by Soeharto's eldest grandson, Ari Sigit Harjojudanto, 25.

To collect the levies, the company got permission from Bali's
governor. The levy collection is reportedly aimed at discouraging
alcoholic consumption in the predominantly Moslem country.

Bali Governor Ida Bagus Oka made a ruling recently, requiring
all beer cans and bottles to bear stickers bought from the
company. The stickers have a nominal value of Rp 400 (17.5 U.S.
cents) but brewers reportedly have to buy them for Rp 600 each.

Tunky said yesterday that the levy collection is at odds with
the spirit of the government, which is trying to reduce levies
from the public.

"The government has been trying to eliminate through
deregulation all kinds of levies burdening the public," the
minister quoted President Soeharto as saying.

Tunky said that an investigation into the controversial issue
is underway and that he will soon make a ruling to ban such
collections.

He acknowledged that he got the information on the levy
collection from the mass media. "Having learnt about the issue, I
faxed a letter to the Bali governor. So far I haven't yet
received any answer from the governor but I received a report
from our regional office there. And investigations are now going
on," he said.

"In our country, which is governed by the rule of law, only
the government can collect levies from the public," he said,
stressing that everything has to be based on laws.

Asked by the press when the ban on levy collections will be
imposed, the minister answered: "As soon as possible. And our
decision will be applied throughout Indonesia."

Recent reports said that such levy collections also happened
in Kalimantan.

He said that legal action will be taken against any violators,
whoever they are. "We have to be fair," he added.

Meanwhile, Tunky said that his ministry has taken note of the
public's comments on the new regulation, which he issued jointly
with Minister of Finance Mar'ie Muhammad last Friday.

"We'll use the public's comments as inputs for us to design
the next deregulation measures," Tunky said.

He noted that the January deregulation was only the first
phase of a series of deregulation packages due to be issued this
year.

"In the deregulatory measures, we'll particularly address the
problems of levies that are burdening businesses and raising
costs," he said.

He said that the government will identify all levies raising
costs which make Indonesian exports uncompetitive on the world
market.

"We'll solve the problem gradually and hopefully all the
burdens will be removed," he said.

He said that the elimination of levies is part of the
government's efforts to improve the country's economic
efficiency.

"President Soeharto has called for all-out efforts to promote
exports," he said. (13)

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