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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