Observer: Presidential Decree Does Not Mean The Government Supports People To Drink Alcohol

Illustration (Photo: Unsplash)

JAKARTA - Presidential Decree Number 10 of 2021 concerning the Investment Business Sector which legalizes investment in alcoholic drinks is still reaping the pros and cons. Some parties think that the Perpres is believed to be able to stimulate the regional economy. Especially areas that are visited by many foreign tourists such as Bali, East Nusa Tenggara, and North Sulawesi.

"Even though our country is predominantly Muslim, there are areas that are predominantly non-Muslim and there are areas that rely their economies on foreign tourism", said the Research Director of the Indonesian Center of Reform on Economics (CORE) Piter Abdullah in his statement, Tuesday, March 2.

Piter assessed that the production of these drinks can meet the needs of foreign tourists as well as open investment opportunities, not to encourage people in the area to consume alcohol.

"The issue of alcoholic drinks is very sensitive. This Presidential Regulation does not mean that the government supports people drinking alcohol", said Piter.

Moreover, it is explained in the requirements in letter B that investment outside the said regions must be determined by the Head of BKPM based on the governor's proposal.

"This Presidential Regulation opens investment in alcoholic drinks not throughout Indonesia and is bottom-up in nature. Investments are permitted if the Governor as a regional leader proposes", he explained.

However, Piter suggested a further policy to control alcohol consumption. Namely, by imposing excise or directly prohibiting the public from drinking alcoholic beverages.

It is known that Presidential Decree No.10/2021 is only enforced in four provinces based on cultural considerations and local wisdom, including Bali, North Sulawesi, NTT, and Papua.

Bali Governor Wayan Koster said that Arak Bali, Brem Bali, and Tuak Bali drinks are legitimate businesses to produce and develop. For that, he appreciates the issuance of Presidential Decree No. 10/2021 which allows the alcohol industry to become an open business field.

According to Koster, the Perpres strengthens the existence of Bali Governor Regulation No.1 of 2020 concerning Management of Balinese Fermented Drinks and/or Distillations.

Koster said that the liquor industry containing alcohol, wine alcohol, and malt as an open business field for new investment in Bali Province is also a response to the efforts of the Governor of Bali through the Governor of Bali Letter Number 530/2520/ Ind/Disdagperin (Department of Trade and Industry), dated April 24, 2019.

The letter contained a request for revision facilitation for the development of the traditional alcoholic beverage industry in Bali to increase the income of rural communities in Bali related to Presidential Decree Number 39 of 2014.

"Regarding the request for the Bali Governor's Letter, the Minister of Industry of the Republic of Indonesia through the Director-General of Agro-Industry responded to facilitate the revision of Presidential Decree No. 39 of 2014 and while waiting for the amendment to the Presidential Decree, proposes regulations in regional legal products to organize Balinese fermented and/or distilled drinks", explained Koster, Monday, March 1st.