Jokowi canceled the Presidential Regulation about the investment permits for alcoholic beverages after hearing input from several community groups. Previously he signed this document on February 2, 2021.
“After receiving input from ulama-ulama, MUI, NU, Muhammadiyah, and community organizations (mass organizations) and other religious figures, I convey the attachment to the Presidential Regulation for the opening of new investment in the alcoholic liquor industry, I declare it will be revoked,” said Jokowi in a press conference, on Tuesday (2/3).
Two requirements had to be met by investors who wished to place their capital in the alcohol sector.
First, a new investment could be made in the provinces of Bali, East Nusa Tenggara, North Sulawesi, and Papua by paying attention to local culture.
Second, investments outside the province had to be stipulated by the Head of the Investment Coordinating Board (BKPM) based on the governor’s recommendation.
Vice President Ma’ruf Amin’s spokesman, Masduki Baidlowi emphasized that Ma’ruf had taken several steps so that President Joko Widodo would repeal this rule.
He said Ma’ruf had proposed in a limited meeting last Sunday (28/2) with the ministers so that the regulation should not be accepted.
Ma’ruf, he said, had also contacted several relevant ministers so that the proposal to repeal the rule could reach President Jokowi.
“And before announcing the [revocation] there was also a 4-eye discussion between the president and the vice president to discuss the matter,” said Masduki.
Masduki claimed that Vice President Ma’ruf Amin initially did not know that there were regulations regarding alcohol investment permits in the Presidential Decree because these provisions appeared in the Presidential Decree attachment.
He stated that Vice President Ma’ruf Amin was cornered due to this rule. In addition to serving as vice president, Ma’ruf is also a well-respected scholar of the Indonesian people and his government could not issue a permit allowing something that is prohibited by the Koran.
The Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia confirmed that the investment permits for alcoholic drinks that had been issued before Presidential Regulation Number 10 of 2021 concerning the Investment Business Sector were not canceled.
He also said that there was no systemic impact caused by the revocation of the Presidential Decree by the Head of State. The Decree had not yet come into effect and would only be effective on March 4. “I don’t think it has an extraordinary systemic impact,” he said.
Even though the government suddenly revoked the Presidential Decree, he claims that business and investor confidence in Indonesia as an investment destination is still high.