Indonesia says it’s sticking by a plan to curb beer sales at small retail shops, but it might ease up on the rules to exempt foreigners on the popular tourist islands of Bali and Lombok.
Trade Minister Rachmat Gobel, under increasing pressure from retailers and industry associations, said cooperatives in heavily touristy areas on Bali and Lombok would be appointed to distribute the beers to designated retailers. The beers would contain labels stating that they are only intended for purchase by foreigners.
Earlier this year the Ministry of Trade issued a decree that will ban the sale of beverages with between 1-5% alcohol content in convenience stores and small shops across the country starting April 16.
The government says the decree is aimed at regulating alcohol sales to prevent underage drinking and protect public morals. But some industry analysts say it’s a sign of the growing influence conservative Islamic groups have over policy making in Indonesia, where the majority of the population is Muslim but many islands and cities have large Christian, Buddhist and Hindu communities. Bali is majority Hindu.
Though beer will still be available for purchase in supermarkets and restaurants, beverage companies and retailers have put up a fuss, saying the ban will have a significant impact on sales and could deter investors and tourists at a time when the government is looking to them to boost economic growth.
“We’ve faced a lot of complaints from the industry, especially the beer industry, because they’ve experienced a drop in sales for some months,” said Hariyadi Sukamdani, chairman of the Employers’ Association of Indonesia. Retailers have been told to phase out beer stocks from their shops since January.
Trade Minister Rachmat Gobel, under increasing pressure from retailers and industry associations, said cooperatives in heavily touristy areas on Bali and Lombok would be appointed to distribute the beers to designated retailers. The beers would contain labels stating that they are only intended for purchase by foreigners.
“Please don’t think that because we control alcoholic beverage distribution the number of foreign tourists will drop,” said Mr. Gobel, seeking to address concerns about the impact the ban would have on tourism. “They don’t come here not to consume alcoholic drinks but because they want to the natural beauty of our country and our culture.”
Earlier this year the Ministry of Trade issued a decree that will ban the sale of beverages with between 1-5% alcohol content in convenience stores and small shops across the country starting April 16.
The government says the decree is aimed at regulating alcohol sales to prevent underage drinking and protect public morals. But some industry analysts say it’s a sign of the growing influence conservative Islamic groups have over policy making in Indonesia, where the majority of the population is Muslim but many islands and cities have large Christian, Buddhist and Hindu communities. Bali is majority Hindu.
Though beer will still be available for purchase in supermarkets and restaurants, beverage companies and retailers have put up a fuss, saying the ban will have a significant impact on sales and could deter investors and tourists at a time when the government is looking to them to boost economic growth.
“We’ve faced a lot of complaints from the industry, especially the beer industry, because they’ve experienced a drop in sales for some months,” said Hariyadi Sukamdani, chairman of the Employers’ Association of Indonesia. Retailers have been told to phase out beer stocks from their shops since January.