Very Easy Investment Requirements, MPR Leaders Are Worried About Legal Alcohol In All Regions

Hidayat Nur Wahid (Photo: Antara)

JAKARTA - Deputy Chairman of the Indonesian People's Consultative Assembly (MPR), Hidayat Nur Wahid, is worried that Presidential Regulation (Perpres) Number 10 of 2021 which opens investment in the alcoholic liquor industry will not only apply to the 4 provinces mentioned. Namely Bali, East Nusa Tenggara (NTT), North Sulawesi, and Papua, but also legal opportunities throughout Indonesia.

Hidayat assessed that Appendix III of Presidential Decree Number 10 of 2021 letter a seems to only limit that investment in the alcoholic industry is only carried out in these four regions. In fact, in Appendix III number 31 and number 32 letter b of the Presidential Decree also states that other regions can also open investment in the alcohol industry, if the conditions are met.

Attachment III of Government Regulation number 31 and number 32 letter b states that investment outside (the provinces mentioned in) letter a (mentioned above), can be determined by the Head of the Investment Coordinating Board (BKPM) and based on the recommendation of the Governor.

"This means that the investment permit to produce alcoholic drinks can be valid outside the 4 provinces, therefore it can also apply to all regions, if the two light conditions are met. Namely the determination of the Head of BKPM and on the recommendation of the Governor," Hidayat said in a press statement received by VOI, Monday, March 1.

Apart from having a negative impact, the House of Representative (DPR) Commission VIII member who is in charge of religious affairs said that out of the 4 permitted provinces, these are provinces with the majority of the population being Muslim, which strictly forbids alcohol. So, it is feared that the legalization of these regulations will actually have many harms and will spread more dangers.

"In Jakarta, for example, there has just been a crime related to alcohol, a police officer who was drunk and billed for alcohol, actually went berserk and shot 4 people, 2 cafe workers were killed, and 1 National Army person was also killed," Hidayat said reminding several incidents at RM Cafe last time.

Therefore, the deputy chairman of the Prosperous Justice Party (PKS) Syuro Council, the Presidential Regulation which could bring about this kind of noise should be closed and returned to the previous regulations. Namely making the liquor industry a closed investment field.

It is known, recently the government has set the liquor industry as a positive investment list (DPI). Previously, the alcoholic beverage industry was a closed industrial sector.

The policy is contained in Presidential Regulation (Perpres) Number 10 of 2021 concerning the Investment Business Sector. The regulation which is a derivative rule of Law (UU) Number 11 of 2020 concerning Job Creation has been signed by President Joko Widodo and will take effect as of February 2, 2021.

This rule is a derivative of Law Number 11 of 2020 concerning Job Creation. In Appendix III of Presidential Regulation Number 10 of 2021 in numbers 31, 32, and 33 it is stipulated that the liquor industry business sector contains alcohol, wine alcohol, and malt open for new investment in the Provinces of Bali, East Nusa Tenggara, North Sulawesi, and Papua by considering to local culture and wisdom.