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New Government Regulation on Alcohol Retail

New Government Regulation on Alcohol Retail

Trade Minister Rachmat Gobel has decided to change the alcohol retail game in Indonesia issuing by the new set of regulations earlier this month. The regulation effectively bans the sales of class A liquor which includes all alcoholic beverages that contains less than 5% alcohol, in all mini markets nationwide, including Bali.



The regulation was signed off by President Joko Widodo on January 16. However, he has allowed a 3-month processing and withdrawing period for all vendors which makes the regulation effectively enforced starting from April 16, 2015. As expected, this new regulation has gained reactions from the parties which will be dealing with the consequences of this change.


As stated by the newspaper Tempo, The Vice Chairman of Indonesia’s Retailers Association, Tutum Rahanta said that this regulation will cause a significant impact in the revenue of the minimarkets all around Bali, especially those located around the popular tourism areas where the revenue is highly affected by the contribution of alcohol sales.



He also explained that the central government should leave these specific trade regulations, especially in this particular case of alcohol trade, to the provincial government, as every region has their own characteristics and needs to be suited. For example, being a resort island, it is only normal that the minimarkets in Bali provide alcoholic beverages to cater the tourists.



The old regulations required minimarkets to have a permit to sell class A alcoholic beverages under a set of rules, such as placing them on a separated shelf, not allowing to consume the beverage in the store area, as well as not selling the beverage to legally underage (which in Indonesia is 21 years old).

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