Muslim population, the issue of alcohol consumption in Indonesia has raised debates in the country for a long time with the current debate revolving on the possibility of banning alcoholic drinks in the country. Although the rate of alcohol consumption in the country remains relatively high, strong Islamic beliefs held by most Indonesians has made it difficult for investors to invest in alcoholic beverages. Consequently, most alcoholic beverages consumers in Indonesia are tourists. However, some Indonesian youths engage in alcohol drinking although this is mostly restricted to urban areas (Grant 98).
The country’s ban on alcohol advertising on media would also mean that Paulaner has limited platform on which to market its products. As a way of regulating alcohol consumption, the government of Indonesia in 1990 banned alcohol advertising on media which has since made it difficult for new entries in the market to thrive. Other forms of alcohol advertising in the country are also governed by strict rules further making it difficult to reach new markets.
Laws on certification on alcoholic products in Indonesia are also strict and can involve a long process before one gets a license. The country further classifies alcoholic beverages in the closed business field meaning that commercialization of any business related to alcoholic beverages is illegal (Grant 98). Consequently, businesses in this industry are restricted from expansion through investment. When the above factors combine, they present a significant challenge to any investor planning to invest the alcoholic beverages industry in Indonesia.
Among the factors that might negatively impact on a business is poor quality products coupled with poor customer services. Equally detrimental is the effect of negative actions by an employee within a business more so when it comes to dealing with clients. Additionally, irresponsible financial management that includes ill-advised investment can also impact on a ...
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