PT Multi Bintang Indonesia (MLBI) has decided to postpone plans to expand its factory in Mojokerto. The decision was made as the company faced difficulties with Trade Minister Regulation on the distribution of alcoholic beverages and the Draft Bill on alcoholic beverages, which is still being discussed by the House of Representatives.
Bambang Britono, Director of Corporate Relationship of the company said that the Trade Minister Regulation No. 6/M-DAG/PER/1/2015 on the Control and Supervision on Procurement, Distribution and License for Alcoholic Beverages have forced the company to reschedule its plant to expand production facilities.
“It is actually depends on time and supply. Previously [our sales] had dropped because of the Trade Minister Regulation. So we have decided to do a reschedule,” Bambang said on Friday, September 23, 2016.
In addition, the government’s plan to pass the Draft Bill on Alcoholic Beverages, which bans the production, distribution and consumption of alcoholic beverages with an alcohol level of one up to 55 percent have disrupted the company’s distribution activities. Nevertheless, Bambang is certain that the government will be able to come up with a just policy for alcoholic beverages company.
“Because the [alcoholic beverages] industry has quite large [contribution], not only in terms of levy and taxes revenue, but also multiplier effect on other industries, such as tourism. So the government will consider its own discretion,” Bambang said.
