CultureWhat is the Legal Base of Alcohol Production?

What is the Legal Base of Alcohol Production?


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Citizens were finally allowed to produce alcohol. But not just any alcohol. Only the beverages which are a part of local culture and tradition.

Bali Governor Wayan Koster said that Arak Bali, Brem Bali, and Tuak Bali drinks are legitimate beverages to be produced and developed, along with the enactment of Presidential Regulation Number 10 of 2021 concerning the Investment Business Sector.

“Presidential Decree Number 10 of 2021 which was enacted on February 2, 2021, is the implementation of Law Number 11 of 2020 concerning Job Creation,” said Koster.

Previously, he said, Presidential Decree Number 39 of 2014 concerning List of Closed Business Fields and Business Fields Opened, as the elaboration of Article 12 paragraph (3) of Law Number 25 of 2007 concerning Investment, stipulated that the alcoholic beverage industry was a closed business sector.

However, in Law Number 11 of 2020, there is a provision that amends Article 12 of the Investment Law by stipulating that alcoholic drinks are not a closed business sector of investment.

In the Presidential Decree No.10 of 2021, the business sector of the liquor industry containing alcohol, wine alcohol, and malt is stipulated for new investment in Bali Province, East Nusa Tenggara Province, North Sulawesi Province, and Papua Province by paying attention to local culture.

Koster added 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 expressed in Letter Number 530/2520, dated April 24, 2019.

The letter contains a request for revision of 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. 39/2014 and while waiting for the Presidential Regulation amendment to propose regulations in regional legal products to organize Balinese fermented and/or distilled drinks,” said Koster.

Previously, the Bali Provincial Government on January 29, 2020, enforced the Governor of Bali Regulation Number 1 of 2020 concerning Management of Balinese Fermented Drinks and/or Distillations.

“Through the Regulation, Bali provides strengthening and empowerment of crafters of Balinese fermented and/or distilled beverage raw materials, production standardization to ensure safety and legality, as well as the welfare of Balinese manners,” he said.



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