Fingers are crossed for a spirited New Year

Prodita Sabarini, THE JAKARTA POST, JAKARTA | Sun, 12/27/2009 2:05 PM

The Indonesian Hotel and Restaurant Association (PHRI) is optimistic booze will be flowing on New Year's Eve as shipments of alcoholic beverages are scheduled to be delivered to the Jakarta port this week, the association chairman said.

PHRI Jakarta chairman Khrisnadi said this week that hoteliers and restaurateurs were counting on the country's sole importer of wine and spirits, PT Sarinah, to deliver the alcohol soon.

He said they were experiencing shortages of wine and spirits and needed fresh supplies to meet increased end of year demand.

Earlier this month, custom officials detained 34 containers of wine and spirits in Tanjung Priok Port because Sarinah officials under-reported the value of the shipment.

The Finance Ministry's custom and excise office said Sarinah had to pay a fine equal to 1,000 percent of the total value of the goods.

"It was agreed that Sarinah would deliver the alcohol *after paying the fine*," Khrisnadi said.

PT Sarinah director Jimmy Gani said they were working to deliver the alcohol. "Some of the shipment is still being detained in the warehouse because of technicalities. We have to pay the fines and have not yet done so fully," he said.

He said the cost of the fine would not be passed on to consumers. "Most consumers are foreign tourists who will complain if the price goes up," he said.

Alcohol is heavily taxed at around 500 percent.

Khrisnadi said it would be disgraceful for Indonesia if the alcohol failed to be delivered.

"The alcohol shortage would not affect expatriates who have lived here for a while. We have had shortages previously so they understand the situation," Khrisnadi said. "But it will be a problem for foreign tourists who are here on vacation and want to celebrate New Year's Eve and find there's no alcohol."

Jimmy said Sarinah had imported 270,000 crates of alcohol this year, around "70 percent of our quota".

In 2008, PT Sarinah, reported only Rp 62 billion (US$5.8 million) in collected tax revenue from its alcoholic imports. The government has reported recently that up to 60 percent of alcohol consumption in Indonesia is supplied by the black market, causing annual losses about Rp 1.5 trillion in alcohol tax revenue.

The Customs and Excise Office has urged the Trade Ministry to allow more companies to import alcoholic beverages, instead of just Sarinah, to help curb smuggling.