Although the government’s minimarket beer ban has only gone into effect today, the negative economic impact of the new regulation is already hitting two of Indonesia’s biggest beer producers hard.
Stock in PT Multi Bintang Indonesia (best known for producing Bintang and Heineken beers) and PT Delta Djakarta (best known for producing Anker, San Miguel and Kuda Putih beers) have both fallen sharply in the past three months, when the minimarket beer ban was first announced.
Stock in Multi Bintang, which trades on the Indonesian stock exchange under MLBI, has fallen 19.16% since the Trade Ministry announced the ban in January, whereas Delta Djakarta, which trades under the symbol DLTA, has fallen 22.22%.
An analyst for PT Mandiri Invest Suggestions, Kiswoyo Adi Joe, told CNN Indonesia, “”I expect sales to drop by about 10 percent if the companies are not able to find a new means of distribution or strategy to boost sales.”
The Jakarta Government actually owns about 23.34% of Delta Djakarta shares, an investment that has earned the capital over Rp 200 billion over the last five years. It is clear that the minimarket beer ban will have a significant negative economic impact on that revenue stream and could end up costing Jakarta billions or rupiah in revenue over the next few years.
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