top of page
  • Writer's pictureICMSS

Jokowi Repealed Alcoholic Beverage Investment Permit

President Jokowi dismissed the presidential regulation on alcoholic beverage investment permits, which was previously stated on Perpres No. 10 of 2021 concerning the Investment Business Sector signed by the head of state on February 2, 2021. Jokowi canceled the Perpres after hearing input from numerous community groups, such as MUI, NU, and other mass organizations. "After receiving input from ulama, MUI, NU, Muhammadiyah, and community organizations (mass organizations) and other religious figures, I convey the attachment to the Perpres for the opening of new investment in the alcoholic liquor industry, I declare that the regulation will be revoked," said Jokowi in a press conference, Tuesday (2/3). Previously, Perpres 10/2021 was replacing Perpres 44/2016, in which the government cut the number of closed business fields or negative investment list (DNI) from 20 sectors to six sectors. This declaration implies that 14 sectors beforehand listed as closed business sectors are now open to investors, both domestic and foreign; three of them are alcoholic liquor, wine, and malted drinks. With the late decree's repeal, these alcoholic beverages have returned to the closed investment business sector.

President Joko Widodo's repealing of the regulation to invest in alcoholic beverages heavily impacted some stocks on the capital market. Established liquor producers in Indonesia such as PT Delta Djakarta Tbk (DLTA) and PT Multi Bintang Indonesia Tbk (MLBI) weakened in the first session on Wednesday (3/3) in contrast to the previous two days of trading where DLTA gained 1.6% and 2.9%. PT Multi Bintang Indonesia (MLBI) experienced a landslide up to 2.41% or Rp9,125/unit. IDX trade data records MLBI transactions reached up to Rp160.6 million approaching the first session closing and reaching 17,600 shares traded. Meanwhile, PT Delta Djakarta Tbk (DLTA) recorded a transaction value of shares that reached Rp480.8 million with a volume of sold transactions of 124 thousand shares, and foreign investor's net buy in the regular market reached a value of Rp19.4 million.

The process of relinquishing PT Delta Djakarta beer shares ownership has received several responses from the government. Most government parties have agreed to this matter; some have not and are still in the approval process stage. According to the DKI Jakarta Provincial Government, the sales' profits can be allocated as funds for handling COVID-19, education, and infrastructure. Also, this can be one of the government's actions to support maintaining public health. Meanwhile, the Head of the DKI Jakarta DPRD, Prasetyo Edi Marsudi, denied the DKI Jakarta Provincial Government's plan to release shares in 2019. According to him, the beer company did not inflict a financial loss to the DKI Jakarta Provincial Government, but Delta Djakarta provided dividends for regional finances. Until now, the process is still in the discussion stage and requesting approval from DPRD DKI Jakarta. Recently, the DKI Jakarta Provincial Government also combines share ownership in the DKI Provincial Government and the DKI Jakarta Investment Management Board, seeking 26.25%. The merger that was carried out in 2019 is one of the processes of selling Delta Djakarta shares. All in all, this late regulation impacts the Indonesian capital market and the future of Indonesia's investment prospects.


CNBC Indonesia

CNN Indonesia



25 views0 comments

Recent Posts

See All


bottom of page