The Indonesia Retail Association (Aprindo) is urging the government to lift a ban on alcohol sales from minimarkets amid slowing retail sales growth.
The latest data from Nielsen shows that minimarket sales from 113 product categories grew by 8.7 percent in the January to May period this year, a contrast from the 19.8 percent increase in sales during the same period last year.
Alcohol, banned in minimarkets since 2015, contributed roughly 11 percent to minimarket sales, according to Aprindo.
Aprindo chairman Roy Mandey said there were three consequences of continuing the ban.
First, the ban proves that the government is not accommodating globalized modern trade.
Second, it is not accommodating consumer demand.
Third, it is fuelling an expansion in the black market, with people selling drinks in cars or in makeshift tents.
“Instead of giving a chance to the tax-free black market, it is better to allow sales in shops that pay taxes,” Roy said as quoted by Kompas.com on Monday.
Furthermore, the ban is bad for beer and alcohol producers. These producers might move from Indonesia to other more welcoming countries, he claimed.
Source : The Jakarta Post