The President of the Republic of Indonesia confirms alcoholic beverage sector closed to investment
In a bid to limit the implementation of investment and to ensure tight control and supervision over the alcoholic beverages sector, the President has amended Regulation of the President No. 10 of 2021 on Investment Business Fields through the issuance of Regulation of the President No. 49 of 2021 ("Amendment").
The Amendment states that the various business fields currently open to investment activities comprise commercial business fields. Moreover, the list of business fields that are closed to investment has now been redefined as follows:
- Alcoholic Beverage Industries, specifically industries that comply with the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia – "KBLI") code 11010
- Alcoholic Beverage Industries: Wine (KBLI 11020)
- Malted Beverage Industries (KBLI 11031)
In terms of business fields that are open under certain conditions ("Business Fields"), investors are also now required to comply with a number of other investment requirements, specifically in relation to business fields that are limited and closely monitored. Investors should also ensure that they are in compliance with Regulation of the Minister of Trade ("Minister") No. 20/M-DAG/PER/4/2014 on the Control and Supervision of the Procurement, Circulation and Sale of Alcoholic Beverages, which has been amended several times, most recently through the issuance of Regulation of the Minister No. 25 of 2019.
These Business Fields encompass the following:
- Wholesaling of alcoholic beverages (importers, distributors and sub-distributors) (KBLI 46333)
- Retail trading of liquor and alcoholic beverages (KBLI 47221)
- Small retail trading of liquor and alcoholic Beverages (KBLI 47826).
The Amendment has been in force since 25 May 2021.
Source : Indonesian legal center “Hukum Online”.
