Indonesia: Multi Bintang Indonesia asked by the government to open more breweries

A major Indonesian brewery is expected to expand its production operations beyond Java in order to create more work opportunities in other regions of the archipelago, an official at the Manpower and Transmigration Ministry was quoted as saying by Jakarta Globe on February, 14.

The director general of industrial relations at the ministry, Ruslan Irianto Simbolon, said the ministry had asked domestic beer-producing company Multi Bintang Indonesia to open factories outside the island of Java.

The company’s most prominent product is Bintang beer, a staple of Indonesia’s bars and clubs. It is also a distributor of Heineken and Guinness brands.

“The opening of beer factories in North Sumatra or other provinces outside Java will create new jobs,” Ruslan said in a speech about the cooperation agreement with Multi Bintang Indonesia.

The company’s president commissioner, Cosmas Batubara, said he welcomed the idea.

“This is a very good suggestion, our company will consider it,” he said at the event, in which the company also announced that it had signed a new labor agreement with its employees’ union.

The company currently has breweries in the provinces of Banten, Central Java and East Java.

Cosmas added that further business expansion would be accelerated by ensuring an attractive investment climate, adding that Indonesia’s consistent economic growth continued to draw investors’ gaze.

“For the investors to want to invest their money, our business climate must be conducive and competitive. To support it, it is important to have skilled workers and a good industrial relationship manifested in the agreement between businesspeople and the workers union,” he said.

15 February, 2013