Indonesia's Minol Industry Spans the United States Market

INDUSTRY.co.id - Jakarta, the Ministry of Industry (Kemenperin) gave an appreciation to PT Multi Bintang Indonesia (MBI), which can penetrate the export market to the United States (US).

"With the success of the first Bintang Beer export by PT Multi Bintang Indonesia Tbk to the US, it certainly becomes a breakthrough or new breakthrough given the tight competition of products to enter the market there," said Acting. Director General of Agro Industry at the Ministry of Industry, Achmad Sigit Dwiwahjono at the inauguration ceremony of Star Beer's Prime Export to the United States by PT Multi Bintang Indonesia Tbk in Tengerang, Banten, Monday (08/13/2018).

According to him, producers of alcoholic beverages (minol) in the country are able to produce premium types of products whose quality is not inferior to foreign products so that it can also be a substitute for imported products.

"In fact, along with the increasing number of tourists both local and foreign, it also affects the increase in the productivity of the minol industry in the country," he explained.

However, the Ministry of Industry continues to play a role in controlling and monitoring the production and quality of the Minol industry so that its products are safe for consumption.

"The guidance made for this industry is control and supervision, ranging from aspects of licensing, production, quality to circulation," said Sigit.

This is in line with the application of Presidential Regulation No. 74 of 2013 concerning Control and Supervision of Alcoholic Beverages, as well as Regulation of the Minister of Industry No. 63 of 2014 and amendments to the Regulation of the Minister of Industry No. 62 of 2015 concerning Control and Supervision of Industry and Quality of Alcoholic Beverages.

In addition, there is the application of Presidential Regulation Number 54 of 1993 concerning the List of Business Fields that is closed to Investment.

"This means that new investments in the Minol industry have not been opened," he added.

PT Multi Bintang Indonesia Tbk President Director Michael Chin said, his company was aggressive in exploring new markets for exports such as the United States. We previously exported to South Korea in May 2018.

"This means that Bintang Beer will be available on four continents in the world, namely Asia, Europe, Australia, and most recently the United States," he said.

According to Michael, the export of Bintang Beer to the US is quite interesting because of the high demand from Uncle Sam's country surfers after they made a trip to Indonesia.

"In addition to being popular with US surfers, there is also a proliferation of Southeast Asian restaurants there, where quite a lot of consumers are looking for our beer products," he said.

Based on the records of the Ministry of Industry, the Minol industry plays a role in increasing the state cash from excise value of Rp5.27 trillion in 2017, up around 2.63 percent compared to 2016 excise revenue which reached Rp.5.14 trillion.

Furthermore, in the last five years, the average growth of beer export value was recorded at 12 percent per year. So far, the destination of beer exports is limited to traditional countries such as Malaysia, Thailand, Cambodia, Singapore, East Timor, and other countries with a value of USD 7.6 million in 2017.