Monday, July 6, 2009
Why Indonesia Isn’t Producing Enough Alcohol
Indonesia tops a lot of global lists: It is the world’s largest archipelago; it has the world’s largest Muslim population; and, unknown to many, it is also one of the largest importers of alcoholic beverages. Indonesia is the sixth largest importer of alcohol in the world by volume, just behind Thailand.
The problem is, alcohol production is on the country’s ‘negative’ investment list.
The government is currently preparing a presidential decree on a newly revised negative investment list, which it is expected to share with industry groups on Saturday for comment. The inclusion of alcohol on the negative investment list is more political than economic, Maxi said, and opening up the industry will mean less import taxes to distributors and bring additional benefits, such as new jobs.
Beer manufacturers PT Multi Bintang Indonesia and PT Delta Djakarta, which produces Anker beer are the sole alcohol producers on the stock exchange and cannot meet domestic demand.