Yes, that bill that would essentially ban the production, sale and consumption of all alcohol in Indonesia is still alive and under review in Parliament. Primarily being pushed by two Islamic political parties (PPP and PKS), some believe the bill was drafted just to win some pre-Ramadan political points among conservative voters and has little chance of realistically passing into law.
But considering the minimarket beer ban became real earlier this year, there is at least some chance the total alcohol ban could could still be realized.
One NGO is calling on legislators to seriously review the potential economic fallout from the bill, arguing that it could have disastrous effects on certain industries and possibly destroy millions of jobs.
“Before being passed into law, the bill should be reviewed while aspects of state revenues and employment are seriously considered,” said Hans Suta Widhya, the coordinator for The People Ranks of Anti-Corruption and Criminalization (BRAKK), as quoted by Antara.
“Millions of people could lose their jobs as a result of the policy. Therefore we ask that the law should not ban but control the distribution of alcoholic drinks,” Hans said.
Hans said that research by the Centre for Strategic and International Studies (CSIS) showed that a ban on production and consumption of alcoholic drinks in Indonesia would result in the state losing Rp21.82 trillion ($2.08 billion or about 0.11 percent of Indonesia’s GDP!).
“That does not include the income from excise taxes on alcoholic drink which amounted to Rp 4.9 trillion in 2014 and Rp 6 trillion in 2015. There would also be losses in income taxes from the restaurant and hotel sector since production and distribution activities would be halted,” Hans said.
Research also showed that more than 100,000 workers would lose their jobs in factories that produce alcoholic beverages and related companies and industries including those working in transportation, distribution and agriculture sectors.
The largest number of workers losing their jobs would actually be in the agricultural sector as they are the supplier of the basic ingredients for alcoholic drinks.
“Worse still, the ban on alcoholic drinks would revive the black market, which could not be easily controlled,” he said.
The Indonesian government would never ban the production or sale of tobacco products because of the massive effect it would have on the economy. This research shows that, even though a relatively small percentage of Indonesians drink alcohol, banning it would have a hugely adverse effect on the economy.
And that is the reason that will finally force lawmakers to drop this bill (we hope!)
