Multi Bintang Cancels Factory Expansion
In this article (5)
PT Multi Bintang Indonesia (MLBI) has decided to postpone plans to expand its factory in Mojokerto. The decision was made as the company faced difficulties with Trade Minister Regulation on the distribution of alcoholic beverages and the Draft Bill on alcoholic beverages, which is still being discussed by the House of Representatives.
Bambang Britono, Director of Corporate Relationship of the company said that the Trade Minister Regulation No. 6/M-DAG/PER/1/2015 on the Control and Supervision on Procurement, Distribution and License for Alcoholic Beverages have forced the company to reschedule its plant to expand production facilities.
“It is actually depends on time and supply. Previously [our sales] had dropped because of the Trade Minister Regulation. So we have decided to do a reschedule,” Bambang said on Friday, September 23, 2016.
In addition, the government’s plan to pass the Draft Bill on Alcoholic Beverages, which bans the production, distribution and consumption of alcoholic beverages with an alcohol level of one up to 55 percent have disrupted the company’s distribution activities. Nevertheless, Bambang is certain that the government will be able to come up with a just policy for alcoholic beverages company.
“Because the [alcoholic beverages] industry has quite large [contribution], not only in terms of levy and taxes revenue, but also multiplier effect on other industries, such as tourism. So the government will consider its own discretion,” Bambang said.
Questions & Answers
Q.What is the primary reason for Multi Bintang's decision to postpone its factory expansion plans?
What is the primary reason for Multi Bintang's decision to postpone its factory expansion plans?
Multi Bintang postponed its expansion due to difficulties faced with the Trade Minister Regulation concerning alcoholic beverage distribution. The company's sales had previously dropped because of this regulation, leading to a rescheduling of its production facility plans.
Q.Which government initiatives are impacting Multi Bintang's operations and expansion plans?
Which government initiatives are impacting Multi Bintang's operations and expansion plans?
The Trade Minister Regulation on alcoholic beverage control and supervision, and the Draft Bill on alcoholic beverages, which proposes banning production, distribution, and consumption of certain alcohol levels, are impacting the company.
Q.What specific impact did the Trade Minister Regulation have on Multi Bintang's sales?
What specific impact did the Trade Minister Regulation have on Multi Bintang's sales?
The Trade Minister Regulation caused Multi Bintang's sales to drop. This sales decline directly influenced the company's decision to reschedule its planned expansion of production facilities in Mojokerto.
Q.Does Multi Bintang expect the government to introduce a fair policy for alcohol companies?
Does Multi Bintang expect the government to introduce a fair policy for alcohol companies?
Yes, Bambang Britono expects the government to develop a fair policy. He believes the government will consider the industry's significant contribution to levy and tax revenue, as well as its multiplier effect on other sectors like tourism.
Reader pulse
What's the outlook for MLBI?
21,338 votes so far