NEWS
INDONESIA REVOKED POLICY ALLOWING FOREIGN INVESTMENTS IN ALCOHOL PRODUCTION
By Siulan Law Mathews DipWSET
8-3-2021
Credit: Fikri Rasyid/Unsplash
Indonesian President Joko Widodo revoked a policy to allow foreign investments in the manufacturing of alcoholic beverage due to strong opposition from the country’s Islamic groups.
As the world's biggest Muslim country, Indonesia has banned new foreign investment in alcoholic beverages since the 1990s.
But President Widodo issued a regulation last month that would lift the restriction in provinces where Muslims are not the majority of the local population.
However, the relaxation has met with strong opposition from the country’s Islamic groups. The president eventually announced on last Tuesday that the ban on new foreign investment in alcoholic drinks manufacturing will be reinstated.
"After hearing input from ulamas (Muslim elders) ... I hereby declare that the presidential regulation pertaining to opening new investments in the industry of alcoholic beverages revoked," President Widodo said in a television remark.
President Widodo's plan to relax restrictions on foreign ownership of businesses aims at attracting more foreign investments, it does not limit to alcoholic beverage manufacturing. The revoke only affected the plan to open up alcoholic beverages manufacturing to foreign investments.
Alcohol consumption has always been a contentious issue in Indonesia. The Indonesian House of Representatives has included the controversial Alcohol Prohibition Bill among a list of prioritised legislative initiatives for this year.
Based on the draft released by the House, the bill seeks to criminalise producers, distributors, sellers, buyers and consumers of alcoholic beverages.
People caught consuming alcohol will be subject to a maximum of two years in prison and a fine of Rp50million (USD3,500), more than 4 times Indonesian average monthly salary.
Consumption of alcohol in ritual and religious ceremonies, in certain tourist areas and some entertainment venues will be exempt from punishments.
The Alcohol Prohibition Bill was first introduced in 2015 but was put on hold because of wide criticism. Some Indonesian politicians recently renewed calls for prohibition amid a rise in fatalities due to the consumption of illegal moonshine liquor.
(the writer can be contacted at: info@thewinechronicle.com)
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