The Bali government assesses that the issuance of Presidential Decree No. 10/2021 on the investment business sector makes Arak Bali, Brem Bali, and Balinese Tuak drink now a legitimate business to be produced and developed.
The Presidential Decree Number 10/2021 is an implementation of Law Number 11 of 2020 concerning Job Creation. Previously, Presidential Decree Number 39 of 2014 concerning List of Business Fields Closed and Business Fields Opened with Requirements in the Investment Sector, as the elaboration of Article 12 paragraph (3) of Law Number 25 of 2007 concerning Investment, stipulated that the beverage industry alcoholic is a closed line of business.
Meanwhile, in Law Number 11 of 2020, there is a provision that amends Article 12 of Law Number 25 of 2007 by stipulating that alcoholic drinks are not a closed business sector for investment.
The follow-up to the amendment to Article 12 of Law Number 25 of 2007 is contained in Attachment III, numbers 31, 32, and 33 of Presidential Decree Number 10 of 2021 which stipulates that the business sector of the liquor industry contains alcohol, wine alcohol, and open malt for new investment in Bali Province, East Nusa Tenggara Province, North Sulawesi Province, and Papua Province by paying attention to local culture and wisdom.
In a release received by Bisnis, Bali Governor Wayan Koster has submitted a letter from the Governor of Bali Number 530/2520 / Ind / Disdagperin, on April 24, 2019. The letter is related to 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 regarding Presidential Decree Number 39 of 2014.
“Regarding the request, received a response from the Minister of Industry of the Republic of Indonesia through the Director-General of Agro-Industry to facilitate the revision of Presidential Decree No. 39/2014. While waiting for the amendment of the Presidential Decree, he proposes a regulation in regional legal products to organize fermented and/or Balinese distilled drinks,” he said on Monday (22/2/2021).
Then, the Government of Bali on January 29, 2020, enacted the Governor of Bali Regulation Number 1 of 2020 concerning the Management of Balinese Fermented and/or Distilled Drinks which provides strengthening and empowerment of crafters of raw materials for Balinese fermented and/or distilled drinks, standardizing production to ensure safety and legality, as well as the welfare of Balinese.
“With the issuance of Presidential Decree No. 10 of 2021, industrial business licenses and the expansion of Balinese fermented and/or distilled beverages, namely Balinese tuak, Balinese brem, Balinese arak, artisanal products, and arak / brem for religious ceremonies are very open to being developed by Krama Bali”, he said.
Koster admits that he will take a policy in developing industrial businesses along with expanding the business of Balinese fermented and/or distilled beverages through community-based Small and Medium Industries (IKM) in arak craftsmen centers.
Strengthening is carried out with cooperatives or MSMEs so that these people’s businesses can be facilitated through access to capital, quality assistance, packaging, branding, and markets.
Production process practices that are not following traditional processes will be prohibited to maintain the Balinese fermentation and distillation processes that have been carried out traditionally and for generations.