House to Revise Draft Bill on Alcoholic Beverages with Investment Sector in Mind

 
Marcell Sihombing, Rofiq Hidayat


Alcoholic Beverages. Photo by: RES


President Joko Widodo recently announced a grand economic policy package in a bid to revive the nation’s flagging economy. As a result, the House of Representatives (House) is planning to reevaluate various pieces of legislation, including the Draft Bill on Alcoholic Beverages (Draft Bill), with a view to maintaining investment interest in the country and the continuation of the sector.
 
“Obviously we will reevaluate various draft bills, as regulation should be dynamic. We can’t let this affect our investment sector too badly or hamper the growth of our national alcoholic-beverage industry. A total prohibition would be impossible to implement in any case,” stated Firman Subagyo, Vice-Chair of the Legislation Board (Badan Legislasi or Baleg) at the House Office on 17 September 2015.
 
According to Mr. Subagyo, regulations pertaining to the sale of alcoholic beverages are considered to be a part of the trade sector as covered by the new policy package. This is the primary reason why the House must engage in a reevaluation process, so that the currently deliberated Draft Bill on prohibition does not contradict government economic policy. Indeed, moves to revise Minister of Trade Regulation No. 6/M-DAG/PER/1/2015 on the Amendment of Minister of Trade Regulation No. 20/M-DAG/PER/4/2015, which controls and oversees the alcoholic-beverage trade in the country, are already underway.
 
Mr. Subagyo elaborated further on the classification of alcoholic beverages, as laid out in the Draft Bill. Classification of alcoholic beverages comprises of Group A, which covers drinks with an ethanol level of between 1 percent and 5 percent, Group B, for ethanol levels of between 5 percent and 20 percent, and finally Group C, for drinks with ethanol levels of between 20 percent and 55 percent, as well as various kinds of traditional alcoholic beverages, including beverages containing toxic substances such as methanol, propanol, and so forth (commonly referred to as “miras oplosan”).
 
Article 8 (1) of the Draft Bill stipulates that, “The use of alcoholic beverages is permitted for certain specific purposes, which is to be further controlled by government regulation.” Mr. Subagyo, however, has stressed that this provision will inevitably have a huge negative impact on the alcoholic-beverage industry and furthermore insists that regulations that completely ban the production and distribution of alcoholic beverages in Indonesia will lead to legal uncertainty, which will in turn hamper the investment climate.
 
“Investors will hesitate and there’s the risk of this legal uncertainty spurring an investment crisis. We shall be discussing this matter with the government in greater depth,” asserted Mr. Subagyo.
 
Also commenting on the issue, lawmaker Okky Asokawati (Commission IX) asserted that the planned draft of Director General of Domestic Trade Technical Guidelines for Implementing Control, Distribution and Sales of Group A Alcoholic Beverages (Director General Regulation) must be formulated in such a way that does not contradict any higher regulations – specifically Minister of Trade Regulation No. 6 of 2015, which regulates consumer protection as well as public health and security.
 
Mrs. Asokawati firmly believes that the planned revision of the Director General Regulation must not pass into law should it relax rules relating to the distribution of Group A Alcoholic Beverages under the pretext of delegating such authority to local government (Pemerintah Daerah – Pemda). According to Mrs. Asokawati, such delegation would only serve to hamper the effectiveness of Minister of Trade Regulation No. 6 of 2015, as in practice, many regional regulations (Peraturan Daerah – Perda) contradict higher regulations.
 
She further claimed that the inclusion of the draft Director General Regulation into the grand economic policy package is inappropriate, as any intention to revive the national economy should not have any negative consequences for the general public.
 
“There are many less risky ways of readjusting the rules relating to alcoholic-beverage prohibition than revising the Director General Regulation,” concluded Mrs. Asokawati.

(sp)
 
Marcell Sihombing, Rofiq Hidayat


Alcoholic Beverages. Photo by: RES


President Joko Widodo recently announced a grand economic policy package in a bid to revive the nation’s flagging economy. As a result, the House of Representatives (House) is planning to reevaluate various pieces of legislation, including the Draft Bill on Alcoholic Beverages (Draft Bill), with a view to maintaining investment interest in the country and the continuation of the sector.
 
“Obviously we will reevaluate various draft bills, as regulation should be dynamic. We can’t let this affect our investment sector too badly or hamper the growth of our national alcoholic-beverage industry. A total prohibition would be impossible to implement in any case,” stated Firman Subagyo, Vice-Chair of the Legislation Board (Badan Legislasi or Baleg) at the House Office on 17 September 2015.
 
According to Mr. Subagyo, regulations pertaining to the sale of alcoholic beverages are considered to be a part of the trade sector as covered by the new policy package. This is the primary reason why the House must engage in a reevaluation process, so that the currently deliberated Draft Bill on prohibition does not contradict government economic policy. Indeed, moves to revise Minister of Trade Regulation No. 6/M-DAG/PER/1/2015 on the Amendment of Minister of Trade Regulation No. 20/M-DAG/PER/4/2015, which controls and oversees the alcoholic-beverage trade in the country, are already underway.
 
Mr. Subagyo elaborated further on the classification of alcoholic beverages, as laid out in the Draft Bill. Classification of alcoholic beverages comprises of Group A, which covers drinks with an ethanol level of between 1 percent and 5 percent, Group B, for ethanol levels of between 5 percent and 20 percent, and finally Group C, for drinks with ethanol levels of between 20 percent and 55 percent, as well as various kinds of traditional alcoholic beverages, including beverages containing toxic substances such as methanol, propanol, and so forth (commonly referred to as “miras oplosan”).
 
Article 8 (1) of the Draft Bill stipulates that, “The use of alcoholic beverages is permitted for certain specific purposes, which is to be further controlled by government regulation.” Mr. Subagyo, however, has stressed that this provision will inevitably have a huge negative impact on the alcoholic-beverage industry and furthermore insists that regulations that completely ban the production and distribution of alcoholic beverages in Indonesia will lead to legal uncertainty, which will in turn hamper the investment climate.
 
“Investors will hesitate and there’s the risk of this legal uncertainty spurring an investment crisis. We shall be discussing this matter with the government in greater depth,” asserted Mr. Subagyo.
 
Also commenting on the issue, lawmaker Okky Asokawati (Commission IX) asserted that the planned draft of Director General of Domestic Trade Technical Guidelines for Implementing Control, Distribution and Sales of Group A Alcoholic Beverages (Director General Regulation) must be formulated in such a way that does not contradict any higher regulations – specifically Minister of Trade Regulation No. 6 of 2015, which regulates consumer protection as well as public health and security.
 
Mrs. Asokawati firmly believes that the planned revision of the Director General Regulation must not pass into law should it relax rules relating to the distribution of Group A Alcoholic Beverages under the pretext of delegating such authority to local government (Pemerintah Daerah – Pemda). According to Mrs. Asokawati, such delegation would only serve to hamper the effectiveness of Minister of Trade Regulation No. 6 of 2015, as in practice, many regional regulations (Peraturan Daerah – Perda) contradict higher regulations.
 
She further claimed that the inclusion of the draft Director General Regulation into the grand economic policy package is inappropriate, as any intention to revive the national economy should not have any negative consequences for the general public.
 
“There are many less risky ways of readjusting the rules relating to alcoholic-beverage prohibition than revising the Director General Regulation,” concluded Mrs. Asokawati.

(sp)
2026 Hak Cipta Milik Hukumonline.com
Cookies Info