Alcohol production Permit

[Renzo]

Hi There,

I'm doing a Mktg degre at uni in Perth & one of the assignments is on worldwide alcohol production. I am focussing on Indonesia & was wondering if anyone here knows the in's & outs of the system in Bali. I understand that small Arak producers would hardly need to apply for a permit but what about larger producers such as Hatten wines etc? Is there even a permit required?

Any help in this area would be appreciated.

[vandor]

1. All alcohol production, including arak, requires license in Indonesia.
2. Since a government decree of the early 90's, the government has not issued new licenses and alcohol production has been declared as a sector closed for investment in the investment law.
3. The investors of Hatten Wine have tied up with a local company which already had the license from before the 90's.

[gilbert de jong]

Hi renzo,

I would like to add to Vandor's reply ..if he doesnt mind :) ,
Hes right that all production of alcoholic beverages have to be licensed, and if he means with
"a sector closed for investment in the investment law" that foreigners cannot have a license in their name..he again is right.
However about getting a license for production of alcoholic beverages..thats not entirely right..according to my humble opinion :) .
I know someone who had applied for a license..and got it.After "paying" the necessary administration fee..(bribes)hahaha.I believe, but not entirley sure this was in 1998.
Ok thats all for now.
greeetings and goodluck with ur study renzo.
Gilbert.

[Jimbo]

Nice to see a new face Gilbert....Welcome

[Renzo]

Thanks Vandor & Gilbert for your replies. Interesting. Ive done some research and found Bali Moon, Indico wines and a couple of others that have started up in recent times. I guess it's all about paying the right person the right "admin fee". :D

Is there a gove dept that deals with this area in Denpasar or is it done via Jakarta?

[KaBIm]

Is there a gove dept that deals with this area in Denpasar or is it done via Jakarta?

Concerning the production of alkohol in RI I would advise you to contact the Departemen Perindustrian dan Perdagangan (http://www.depperin.go.id/) that should be the one dealing with the issuance of license authorising the production of alkohol. An interesting text of law that you should try to get if you speak bahasa indonesia is the "Keputusan Presiden nomor 3 tahun 1997 tentang Pengawasan dn Pengendalian minuman beralkohol". It defines the different categories of miras (minuman keras), the taxation that apply, the standard of prod...etc Everything that you should need for your survey
If you are unable to get the text from the departemen perindustrian, I should be able to provide you with a copy if you allow me a bit of time... I have to first find it in my database :oops:

Concerning the sales of alkohol, I think that the license are issued by kabupaten/cities and are usually regulated by Peraturan Daerah different in each kapupaten/cities ! Good luck to get the text of law :wink:

Concerning the importation of alkohol, I would advise you to contact the Departemen Keuangan RI (http://www.depkeu.go.id/Ind/) and the Direktorat Jenderal Bea dan Cukai/Directorate of Customs and Excise (http://www.beacukai.go.id). The later should have pages in English if you do not speak bahasa Indonesia. Not sure/don't remenber for the first one. The text of law that you may want to consult is then the "undang undang nomor 11 tahun 1995" and the "undang undang nomor 39 tahun 2007"

[vandor]

if he means with
"a sector closed for investment in the investment law" that foreigners cannot have a license in their name..he again is right.

No! With the new investment law the sector is closed both for foreign AND DOMESTIC investment as well. See

http://www.legalitas.org/database/pu...res77-2007.pdf

I know someone who had applied for a license..and got it.After "paying" the necessary administration fee..

I guess something else happened. Maybe the authorities have "confiscated" someone's previous license, and have "sold" this again.

Ive done some research and found Bali Moon, Indico wines and a couple of others that have started up in recent times.

I am not sure that all these are producing under their own license, and I think, some of them have already burnt their hands with this...

In either case: Renzo seems to be quite enthusiastic about the idea of alcohol production here - and I would strongly advice him/her against that. It is a very very dodgy sector.

[KaBIm]

I guess something else happened. Maybe the authorities have "confiscated" someone's previous license, and have "sold" this again.

Though I am not very confident with the subject, I think you may have it right. No license are issued but I guess that one license can be sold to another party. I have friends who are "illegally" producing an interesting "anggur papaya" and "anggur pala" who told me something like a couple of years ago. They wanted to buy a license that was potentially for sale to produce it on a larger scale.

[goldminer]

Is it possible to buy "home brew" beer kits in Bali? It is very popular in aussie, and becoming quite hi-tech as well. Many different types of ales and brands are available and quite cheap compared to the manufactured beers.
Would home brewing, made in large quantities, say ten dozen, require a permit?

[ronb]

Is it possible to buy "home brew" beer kits in Bali? It is very popular in aussie, and becoming quite hi-tech as well. Many different types of ales and brands are available and quite cheap compared to the manufactured beers.
Would home brewing, made in large quantities, say ten dozen, require a permit?

I haven't seen any - and I am interested enough to take note if I saw them.

Require a permit? - I guess there are two answers:
1. what the law actually says - I cannot answer this for you, but would not be surprised if the answer is "yes"
2. the practical answer - if you are brewing at home and not selling or distributing outside the home it would be very unlikely to come to the attention of anyone

An earlier thread talks of bringing in equipment through customs
http://balipod.com/bali-tips-tricks-...nt-t21184.html