Arak Bali is officially produced and developed

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Arak Bali. PHOTO - SPC.

BALI, THE IMAGE – Bali Governor I Wayan Koster emphasized that when alcoholic drinks such as Balinese arak, Balinese brem and Balinese tuak have been declared legal and official to be produced, developed and sold to the public. This is in line with the enactment of Presidential Regulation (Perpres) Number 10 of 2021 concerning the Investment Business Sector, which is set on 2 February 2021 in Jakarta. This means that Balinese arak, Balinese brem, and Balinese tuak become legitimate business to produce and develop. Presidential Decree Number 10 of 2021 is the implementation of Law Number 11 of 2020 concerning Job Creation.

Previously, Presidential Decree No. 39/2014 on the List of Closed Business Fields and Business fields that are open with requirements in the investment sector, as the elaboration of Article 12 paragraph (3) of Law Number 25 of 2007 concerning Investment, stipulates that industry alcoholic beverages is a closed business sector. In Law Number 11 of 2020, there is a provision that amends Article 12 of Law Number 25 of 2007 by stipulating that alcoholic drinks are not a closed business sector for investment. Follow-up to amendments to Article 12 of Law Number 25 of 2007 contained in Appendix III, numbers 31, 32, and 33 of Presidential Decree Number 10 of 2021 which determine the fields industrial liquor containing alcohol, wine alcohol, and malt is open for cultivation new capital in Bali Province, East Nusa Tenggara Province, North Sulawesi Province, and Papua Province by paying attention to local culture and wisdom.

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“The liquor industry contains alcohol, wine alcohol, and malt as an open business area for new investment in Bali Province as a response to the efforts of the Governor of Bali through Surat Governor of Bali Number: 530/2520 / Ind / Disdagperin, dated April 24, 2019, regarding a revised facilitation request for fostering the traditional alcoholic beverage industry in Bali to increase income rural communities in Bali regarding Presidential Decree Number 39 of 2014, “he said.

Regarding the request for the Bali Governor’s Letter Number: 530/2520 / Ind / Disdagperin, received a response from the Minister of Industry of the Republic of Indonesia through the Director General of Agro Industry to facilitate the revision of Presidential Decree Number 39 of 2014 and while waiting for the amendment of the Presidential Decree proposes regulations in regional legal products to organize fermented drinks and / or a typical Balinese distillation.

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The Provincial Government of Bali on January 29, 2020 enforced the Governor of Bali Regulation Number 1 2020 concerning Management of Balinese Fermented and / or Distilled Beverages that provide strengthening and empowering craftsmen of raw materials for Balinese fermented and / or distilled drinks, standardizing production to ensure safety and legality, as well as the welfare of Krama Bali. With the issuance of Presidential Decree No.10 / 2021, the industrial business license and the expansion of the beverage business will be issued Balinese fermentation and / or distillation, namely Balinese tuak, Balinese brem, Balinese arak, artisanal products and arak / brem for religious ceremonies are very open to being developed by Krama Bali.

The Governor of Bali will take policies in developing industrial businesses and expanding businesses Balinese fermented and / or distilled beverages through Small and Medium Industries (IKM) based people in the centers of arak craftsmen. Strengthening is carried out with cooperatives or UMKM so that This people’s business can be facilitated through access to capital, quality assistance, packaging, branding, and market. These strategies and policies are implemented in order to increase the value of the people’s economy, in order improve people’s welfare. This is a concrete manifestation of siding with the traditional-based people’s economy. “To maintain the typical Balinese fermentation and / or distillation process that has been carried out traditionally and from generation to generation and to maintain public confidence in Balinese traditional drinks, production process practices that are not in accordance with traditional processes will be prohibited,” he said.

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The Governor of Bali on behalf of the Government and Balinese manners expressed his utmost appreciation and gratitude to the President of the Republic of Indonesia, Ir. Joko Widodo, who has issued Presidential Decree Number 10 of 2021. This Presidential Decree strengthens the existence of the Governor of Bali Regulation Number 1 of 2020 concerning Management of Balinese Fermented and / or Distilled Beverages.***

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