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Alcohol License in Indonesia
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The distribution of alcohol within Indonesia is governed by a unique regulatory framework shaped by its diverse cultural landscape. Although not officially prohibited, alcohol is heavily restricted and regulated in Indonesia. Anyone wanting to make, sell, or distribute alcohol needs the proper licenses to stay on the right side of the law.
Indonesian law mandates that businesses involved in the manufacture, distribution, or sale of alcoholic beverages must obtain an Alcohol License. License type is determined by the nature of the business (production, distribution, or retail) and the specific alcoholic beverages handled.
What Can Be Sold Under Alcohol Licenses
- Category A: Beverages with ≤ 5% alcohol (e.g., beer, shandy, light alcoholic beverages)
- Category B: Beverages with 5% - 20% alcohol (e.g., wine, cider, fruit wine)
- Category C: Beverages with 20% - 55% alcohol (e.g., spirits like whiskey, vodka, rum)
- Traditional Indonesian alcoholic beverages (e.g., Anggur Brem Bali)
- Imported alcoholic beverages that comply with regulations
What Cannot Be Sold Under Alcohol Licenses
- Alcoholic beverages without proper licenses or permits
- Medicated alcoholic beverages without specific licenses
- Homemade or illegally produced alcoholic beverages
- Alcoholic beverages that do not meet local regulations
- Alcoholic products that exceed the allowed alcohol content
What regulation rules alcohol distribution in Indonesia?
To regulate the alcoholic beverage industry, the Ministry of Industry implemented a new policy, MOI Regulation 17/2019: Control and Supervision of the Alcoholic Beverage Industry.
A new Indonesian regulation now governs the production, import, and distribution of alcoholic beverages, replacing Minister Regulations No. 63/M-IND/PER/7/2014 and the amended No. 62/M-IND/PER/8/2015.
How many categories of alcoholic drinks exist in Indonesia?
Indonesia categorizes alcoholic beverages in many ways, based on:
Alcoholic beverages classified by their origin.
- Imported alcohol.
- Locally produced alcoholic beverages.
- Non-traditional alcoholic beverages.
- Traditionally produced alcoholic beverages.
According to the Government Regulation No 17/2019
- Class A contains up to 5% ethyl-alcohol or ethanol
- Class B contains around 5% – 20% ethyl-alcohol or ethanol
- Class C ranges around 20% – 55% ethyl-alcohol or ethanol
Document Requirements
- Business Licence (NIB)
- Documentation showing your appointment as a direct seller by a distributor or sub-distributor.
- The NPPBKC (Excise Taxable Goods Entrepreneur Identification Number) is required for companies selling alcoholic beverages.
- Technical data form for the Certificate of Direct Seller of Alcoholic Beverages for Groups B and C (SKPL-B and SKPL-C).
- Other required document
Register an Alcohol License in Indonesia with LMI Consultancy
- Consult your inquiry with our professional consultant
- Submit necessary document
- Proceed with the payment
- Application process
- Receive the complete document
Other Popular Legal Licensing Services in Indonesia
Setup a Business in Indonesia with LMI Consultancy
Established in 2016, LMI Consultancy has been supporting countless individuals in understanding the intricacies of visas, business setup, tax & accounting, and property investment in Indonesia, providing a comprehensive and dependable service.
We take pride in being an ethical and innovative company that places a strong emphasis on exceptional customer service and strives to set a new standard in our industry, guaranteeing a smooth and encouraging experience for our clients.
FAQ
Can an alcohol license expire?
There is no expiration date on an alcohol license. However, any other licences related to your alcohol and alcohol beverage business may have different periods of expiry.
Are there any restrictions for business that sells Alcoholic Beverages?
Companies involved in alcoholic beverage businesses are forbidden to:
- Combine products with non-food-grade alcohol or other harmful substances
- Manufacture products with more than 55% ethanol or ethyl alcohol
- Produce products with a packaging volume of less than 180ml
- Use and store non-food-grade alcohol
- Repackage products
What are the standard Quality Assurance for Alcoholic Beverages in Indonesia?
Alcoholic beverage businesses must meet product quality standards.
Production
- Compliance with classes stated on IUI
- Permissible alcohol must be food-grade and contain less than 0.01% methanol.
- Execution of Current Good Manufacturing Practices for Food Products (cGMP)
- Compliance with technical provisions such as product type and class
- Implementation of Indonesian National Standards (SNI) for certain types of alcoholic beverages
Methods of processing
- Utilisation of fermentation processes for all classes
- Utilisation of distillation processes for Class C only
How can businesses in Bali navigate the Alcohol License in Indonesia and what is NPPBKC?
To operate legally in Bali and sell alcohol, businesses must navigate the Alcohol License system in Indonesia, including registering for an NPPBKC (Nomor Pokok Pengusaha Barang Kena Cukai) – a mandatory excise number. The process involves applying through the Online Single Submission (OSS) system and complying with all excise and trade regulations. Without this, the sale of alcoholic beverages is prohibited, and businesses risk heavy sanctions.
What should I know about obtaining a visa, business consulting, and permits if I want to sell alcohol in Indonesia?
If you’re a foreign investor seeking a visa and engaging in business consulting to open an establishment that sells alcohol in Indonesia, be prepared for strict regulations. You must secure the correct permits and adhere to custom rules, including potential bans in certain regions. International standards apply, including regulations about the minimum age for alcohol sales, and local laws governing where and how alcohol can be sold.
How do I obtain an alcohol licence under Indonesian law and comply with regulations if I want to invest in the alcohol industry?
To obtain an alcohol licence in Indonesia, applicants must comply with local laws and demonstrate alignment with strict regulations governing the alcohol industry. This includes applying for an Industrial Business Licence through the OSS platform. If you’re planning to invest in Indonesia’s liquor market, thorough legal compliance and documentation are essential to operate within the formal sector and avoid regulatory issues.
How can I navigate the Alcohol License Indonesia process as an entrepreneur looking to invest in Indonesia’s alcohol industry?
Foreign entrepreneurs aiming to invest in Indonesia’s growing alcohol industry must first obtain the correct alcohol sales licence. The process is complex and regulated. To ensure compliance, many turn to trusted experts like LMI Consultancy, who can help navigate legal procedures, licensing requirements, and the OSS system. Having the right support helps streamline the application and protects your investment.
Disclaimer : Our services in LMI Consultancy provide consulting services focused on ensuring client compliance with applicable immigration and legal regulations in Indonesia. We do not provide or facilitate the production of official government documents, nor do we offer any expedited or preferential access to government services.
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