The city's trade and industry agency has increased the quota of imported alcohol in order to provide for year end parties in the city. The quota has been increased from 230,000 boxes to 450,000 boxes, effective for six months.

According to the deputy head of the agency, Soepeno, the quota would also fulfill the needs of several other big cities in Indonesia.

He said several cities had been suffering from a shortage of imported alcohol for months.

"Actually, we plan to reduce imported alcohol in the city. That's why we were so tight about giving licenses for imported-alcohol," Soepeno told The Jakarta Post recently.

"But there is an increasing demand for alcohol for the Christmas and New Year occasions, about 20 percent higher than normal," Soepeno said.

He added that the government had appointed state-owned importer PT Sarinah as the sole controller of imported alcohol throughout Indonesia.

"Hopefully the quota will be enough, also we have tried to cut the distribution of illegal alcohol in the city," Soepeno said.

Soepeno said that he was aware of the black market of alcohol.

"We know about it already and we are trying our best to stop those illegal markets. We do not want teenagers taking the opportunity to get imported alcohol from these illegal markets," Soepeno said.

Hospitality industry sources have said restaurants, hotels, and bars were forced to buy alcohol from illegal markets throughout Jakarta since the shortages began.

"We face difficulties getting alcohol from PT Sarinah, the only importer, since stocks ran out three months ago," a hotel staffer who requested anonymity told The Jakarta Post.

According to the staffer, many foreign customers complain about the shortage of alcohols and hotel operators have bought alcohol on the black market even though the price was high, almost three times the usual price.

"We don't have any choice because our place offers alcohols on the menu. It is a shame when we fail to fulfill what we have promised," he said.

During the shortage, Johnny Walker whisky, for instance, was tagged at Rp 350,000 (US$30) on the black market, higher than the normal price of Rp 120,000.

Many customers are forced to buy local brands such as Topi Miring as a substitute.

"I visited a bar in Matraman, East Jakarta and the place provides cheap alcohol like Suba Indah or Mansion House," Rizal, a resident said.

Under normal conditions, when there is no shortage in legal alcohol, prices on the black market are much lower, because they do not include taxes, duties or customs. Imported alcohol is subject to duty fees, value added taxes of 10 percent, luxury good taxes of 40 percent and customs fees according to alcoholic content.

Customs fees for alcohol content vary from Rp 2,500 per liter for drinks with less than 1 percent alcohol to Rp 26,000 per liter for liquors containing more than 20 percent alcohol for domestically manufactured drinks. Imported beverages can be taxed up to Rp 50,000 per liter if they have an alcohol content of more than 20 percent. (naf)

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