JAKARTA (TheInsiderStories) – The Provincial government of DKI Jakarta plans to release PT Delta Djakarta Tbk (IDX:DLTA) shares, said the governor. Currently the regional government owns 26.25 percent stakes at the beer producer.

Anies Bawesdan hopes the new members of the Jakarta House of Representative will smooth the plan caused the company dividends were no longer included as the regional’ income. He has submitted the letter since the previous house of representative era.

According to him, the government is better to sell shares in Delta Djakarta and use the proceeds for the development of the capital city. One of them is for the development of drinking water infrastructure.

The release of the Jakarta Provincial Government’s share in the Delta Djakarta is a promise of Anies and former Jakarta Deputy Governor Sandiaga Salahuddin Uno since the regional election. The Jakarta government has invested in the company since 1970.

The majority shares of the company controlled by San Miguel Malaysia with a percentage of 58.33 percent and the rest of it hold by public. Delta Djakarta has contributed dividends to the city Rp54.65 billion (US$3.90 million) in 2018 and Rp100.4 billion in 2019.

Consequently, the sell of the shares could slice the Jakarta government reveneus from Rp615 billion in 2019 to only Rp581 billion in 2020.

Delta Djakarta is Indonesia’ largest beer market, popular with brands such as Anker, Carlsberg, San Miguel and Kuda Putih as well as Batavia, made exclusively for overseas markets.  It also engages in the non-alcoholic beverages with brands such as Sodaku and Soda Ice.

In 2016, beer began to recover from the heavy blow of trade ministry rule Number 06 of 2015, which banned the sale of class A alcoholic drinks in convenience stores and traditional grocery retailers from January 2015. This has been cited as one of the reasons for the last year closure of 7-Eleven, a convenience store chain, that had earlier enjoyed popularity among young people hanging out over beer.

As a result, manufactures have chosen to focus on areas and channels with higher growth potential, including tourist destinations such as Bali and Lombok, as well as on-trade channels, such as restaurants, bars, and hotels.

Leading player PT Multi Bintang Indonesia Tbk (IDX:MLBI) has also introduced a stream of new non-alcoholic beer product launches in a bid to penetrate retail channels and secure more retail space. Still, beer is gaining popularity in Indonesia, especially in urban enclaves since alcoholic drinks are still allowed to be sold in the larger supermarkets, restaurants, cafes and hotels.

According to the World Bank report, Indonesia, home to world’ biggest Muslim population, consumes the least alcohol in Southeast Asia with its people on average drinking just 0.6 liters of alcohol a year.

What was surprising was that Indonesia was more sober than Malaysia and Brunei Darussalam. South Korea ranked number one with 10.9 liters of average alcohol consumption per person, while Vietnam was in second position with 8.7 liters of alcohol consumption per person per year.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com