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Jakarta Post

Conservative forces thwart alcohol investment plan

  • Dzulfiqar Fathur Rahman and Budi Sutrisno


Jakarta   /   Thu, March 4 2021   /  01:00 am
The booze industry took a hit from the pandemic, as reflected in a steep decline in state revenue from the alcoholic beverage excise, which was down 15.18 percent year-on-year (yoy) at around Rp 250 billion in January.(Shutterstock/Robyn Mackenzie)

Powerful Muslim organizations and Papuan political figures have successfully lobbied the government to revoke new investment rules meant to boost the liquor, wine and beer business in Indonesia, the world’s largest Muslim majority country. The country’s two leading Muslim organizations, Nahdlatul Ulama (NU) and Muhammadiyah, the influential Indonesian Ulema Council (MUI) and various Papuan leaders, among other political figures, pushed President Joko “Jokowi” Widodo to repeal the rules on Tuesday, just one month after they had been passed. Jokowi specifically announced the revocation of three provisions in the third appendix of Presidential Regulation No. 10/2021 that enable investments in the alcoholic beverages industries in Bali, East Nusa Tenggara (NTT), North Sulawesi and Papua. The provisions allow governors of other provinces, with the approval o...