A Wave Of Rejection Appears, Jokowi Finally Canceled The Presidential Decree On Alcohol Investment

JAKARTA - President Joko Widodo has decided to cancel the attachment to Presidential Regulation (Perpres) Number 10 of 2021 concerning the Investment Business Sector. This Perpres opens the tap for investment in liquor companies (alcohol) in several provinces.

Jokowi said the decision to cancel the opening of alcohol investment was made after receiving input from several organizations and religious leaders who opposed the Perpres.

"After receiving input from Ulama (Cleric of Islamic), MUI (Indonesian Religious Leader), Nahdlatul Ulama (NU), Muhammadiyah, and other mass organizations, as well as other religious figures, as well as input from provinces and regions, I hereby decide on an attachment to the Presidential Decree regarding the opening of investment. It is new in the liquor industry that contains alcohol I declare that it has been revoked", Jokowi said in a YouTube broadcast by the Presidential Secretariat, Tuesday, March 2.

The government had previously designated the liquor industry as a Positive Investment List (DPI). Previously, the alcoholic beverage industry was a closed industrial sector.

This investment licensing policy for the alcoholic beverage industry applies in Papua, Bali, East Nusa Tenggara, and North Sulawesi.

The Presidential Regulation is a derivative rule of Law Number 11 of 2020 concerning Job Creation. Based on the Presidential Decree, the alcoholic beverage industry can obtain investment from various sources, both foreign and domestic investors.

With this permit, cooperatives to MSMEs can also inject investment into the alcoholic beverage industry. The regulation is listed in attachment III of the Presidential Decree, which is about a list of business fields with certain requirements. The alcoholic beverage business is included in it.

One of the reasons the government opens up these investment opportunities is so that existing activities based on culture or local wisdom become legal, thereby strengthening supervision and control over production and distribution.

The Presidential Decree for the opening of alcohol investment has drawn rejection. This Presidential Regulation is opposed by various groups, especially religious leaders such as MUI, NU, and Muhammadiyah.