Piter Abdullah : Alcohol Consumption Could Move Regional Economy

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NUSADAILY.COM – JAKARTA – Research Director of the Center of Reform on Economics (CORE) Indonesia Piter Abdullah said Presidential Regulation No. 10 of 2021 on Investment Business that legalizes the investment of alcoholic beverages can drive the regional economy.

“This presidential regulation opens the investment of alcoholic beverages not throughout Indonesia and its nature is bottom up. Investment is permitted if the Governor as the regional leader submits a proposal,” Piter said in a statement in Jakarta on Tuesday.

According to him, the investment of alcoholic beverages can boost the economy of the region, especially the area visited by many foreign tourists such as Bali, East Nusa Tenggara, and North Sulawesi.

“Although our country is majority Muslim but there are areas that are majority non-Muslim and there are those areas that rely on their economies to foreign tourism,” he said.

He also stressed that the production of the drink can meet the needs of foreign tourists or open the opportunity to invest, not to invite people in the area to consume alcohol.

“The issue of alcoholic beverages is very sensitive. This presidential decree should not mean the government supports people drinking alcohol,” Piter said.

Piter even proposed a further policy to control the consumption of alcoholic beverages, namely by imposing a tax or prohibiting people directly to drink alcoholic beverages.

However, he warned the application of such provisions should be accompanied by clear and effective law enforcement. So that the implementation of this investment policy does not deviate from that stipulated in the presidential regulation.

“Keeping people from drinking alcohol is another policy context,” Piter said.

Alcoholic Beverage Industry Investment Licensing

Investment licensing policy for the alcoholic beverage industry in Papua, Bali, East Nusa Tenggara, and North Sulawesi is contained in Presidential Regulation No. 10 of 2021 concerning Investment Business sector signed by President Jokowi on February 2, 2021.

The presidential regulation is a derivative rule of Law No. 11 of 2020 on Copyright Work.

Based on the regulation, the alcoholic beverage industry can obtain investments from various sources, both foreign investors and domestic investors.

With the permit, cooperatives to MSMEs can also inject investment into the alcoholic beverage industry.

The regulation is listed in appendix III perpres, which is a matter of business field list with certain requirements. The field of alcoholic beverage business is included in it.

One of the reasons the government opens up these investment opportunities on a limited basis is that existing activities and based on local culture or wisdom become legal. So as to strengthen supervision and control over production and distribution. (lal)