In Islam alcohol is considered haram (forbidden) because it is intoxicating. It is a view that certainly undermines sales of alcoholic beverages in Indonesia, a country that is home to the world’s largest Muslim population, even though there are quite some Muslims who do enjoy an alcoholic beverage.

Rising conservatism in Indonesia is also visible in law-making and decision-making related to the sales, distribution, and import of alcoholic beverages. For example, in 2015 the government introduced a ban on sales of alcoholic drinks in minimarkets. 

Another interesting example of rising conservatism vis-à-vis alcohol is the decision of Jakarta Governor Anies Baswedan to sell the 26.25 percent stake of the Jakarta provincial administration in beer brewery Delta Djakarta, one of Baswedan’s campaign promises during Jakarta’s 2017 gubernatorial election.

Despite challenging conditions Indonesia's largest beer brewer, Multi Bintang Indonesia, has managed to post growing sales in recent years. Which strategies did this company use to safeguard rising sales amid challenging conditions?

Read the full article in the August 2019 edition of our monthly research report. You can purchase the report by sending an email to info@indonesia-investments.com or a WhatsApp message to the following number: +62(0)8788.410.6944



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