Heineken in talks with Indonesia on beer ban, underage drinking

1 min readUpdated Apr 22, 2015Apr 24, 20152:00 AM

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Brewing companies and Indonesia’s Trade Ministry will form a joint working group to discuss alternative solutions and programs to prevent underage drinking, Dutch brewer Heineken says.

Heineken, the largest shareholder in Multi Bintang Indonesia, met with Trade Minister Rachmat Gobel on Sunday just days after the government banned alcohol sales at convenience stores and small shops across the country.

In a press release obtained by GlobeAsia, Heineken said that the company applies very strict rules about how to market and sell its beer products that include prevention of underage drinking. It also said that Multi Bintang has worked with a large number of minimart operators to train their staff to make sure they do not sell to people below the legal drinking age of 21 years old.

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What this means

Heineken's proactive engagement with the Indonesian Trade Ministry, forming a joint working group, is a strategically sound defensive move. Rather than a full withdrawal or direct confrontation, this approach allows for dialogue and potential influence over policy, contrasting with the more direct 'store opening' or 'market entry' strategies seen elsewhere in Asia. This move directly pressures the government to consider industry perspectives, but also places Multi Bintang under scrutiny regarding its existing underage prevention programmes. Given similar regulatory challenges in other markets, Heineken's long-standing presence and established training with minimart operators position it to negotiate. We should closely watch the first policy recommendations from this working group.

Maria Santos

Questions & Answers

What is the purpose of the joint working group mentioned in the article?

The joint working group, formed by brewing companies and Indonesia’s Trade Ministry, aims to discuss alternative solutions and programs. Its primary objective is to prevent underage drinking across the country. Heineken confirmed its involvement in this initiative.

When did Heineken meet with the Indonesian Trade Minister?

Heineken met with Trade Minister Rachmat Gobel on Sunday. This meeting occurred just days after the Indonesian government implemented a ban on alcohol sales at convenience stores and small shops nationwide.

What steps has Multi Bintang Indonesia taken to prevent sales to underage individuals?

Multi Bintang Indonesia has collaborated with many minimart operators. They have trained staff members to ensure they do not sell beer products to people who are below the legal drinking age of 21 years old.

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