A bottle of Bintang beer chilled at a beer factory in Jakarta. (Reuters Photo/Beawiharta)
Beer Business Still Bubbly Despite Tough Regulation, Multi Bintang Profit Nearly Doubles
BY :SARAH YUNIARNI
APRIL 19, 2017
Jakarta. Multi Bintang Indonesia, Indonesia's largest brewer, nearly doubled its net income last year thanks to strong sales and product innovations.
Multi Bintang booked Rp 982 billion ($74 million) in net income last year, up 98 percent from Rp 497 billion in 2015.
Net revenue grew by 21 percent to Rp 3.26 trillion from Rp 2.69 trillion in 2015.
"We are pleased to report very strong financial results driven by growth in key tourist areas as well as in the hotel and restaurant segments," Multi Bintang President Director Michael Chin said in a statement received by the Jakarta Globe on Tuesday (18/04).
The company, which sells popular beers Bintang and Heineken, expanded its product range in 2016 by launching new variants of its non-alcoholic and low-alcohol beverages, including Bintang Radler and Bintang Maxx beers, soda drinks Green Sands Lime & Lychee and Lime & Grape and malt-based soda beverages, Fayrouz.
The company said weak sales in 2015 were due to a government regulation that banned sales of alcohol beverages in small retailers.
In April 2015, the Trade Ministry issued a regulation that banned convenience stores and small shops from selling alcohol beverages containing less than 5 percent of alcohol by volume like beer.
However, in September 2015 the government relaxed the regulation by allowing regional governments to determine where sales of alcoholic beverages are allowed, as long as they are not located near houses of worship, schools or hospitals.