Export Market Guide - Indonesia
This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.
All regulatory information for exporting wine to Indonesia, including the regulatory environment, duties and taxes, and permitted additives.
Australia and New Zealand signed a Free Trade Agreement with ASEAN (AANZFTA) in February 2009. AANZFTA is the largest FTA Australia has concluded. ASEAN is worth about $89 million in average annual exports of Australian wine. Indonesia and Malaysia have excluded wine and spirits from tariff commitments citing religious concerns. Consequently, there will be no changes to Indonesia’s tariff rates for wine.
Indonesia is a predominantly Muslim country and alcohol cannot be consumed under Islam. In general, Indonesians are fairly tolerant towards alcohol and do not pose any significant barriers to the market. Alcohol sales and distribution are strictly controlled and excise duties are high. The non-Muslim population is predominantly Christian and of Chinese origin. This sector of the population is also recognised as having the disproportionate share of the wealth, so has the capacity to purchase a higher percentage of the alcoholic beverages available. Around 87 per cent of the population adhere to the Muslim faith which means that potentially there is still a total available market of 33 million people.
Growth in the alcoholic drinks market has been slow but fairly steady in Indonesia driven by wealthy Indonesians, the expatriate community and tourists. Alcohol is heavily taxed by the Government in order to discourage consumption and raise revenue. Consequently, a significant black market exists. By all reports, the wine market is expected to continue its steady growth into the future.
The Republic of Indonesia Act No. 18 of 2012 Concerning Food (the Food Law) is the law covering production, import and distribution of food. Under this law food imports must be registered with the National Agency of Drugs and Food Control (BPOM). This registration process was revised in 2016 under Regulation No. 12 of 2016 – Registration of Processed Food. Regulation No. 5 of 2021 – Safety and Quality Standards of Alcohol Beverages took effect in 2021 replacing Regulation No. 14 of 2016. This regulation is administered by BPOM.
Customs tariffs are governed by Law No. 10 of 1995. The Ministry of Health administers Regulation No. 722/MENKES/PER/IX/88 on Food Additives. The Ministry of Finance administers Regulation No. 158/PMK.010/2018 on Excise Rates for Ethyl Alcohol, Beverages Containing Ethyl Alcohol, and Concentrates Containing Ethyl Alcohol.
The Indonesian government appoints importers of alcoholic drinks. There are now over 18 importing companies established in the market. Alcoholic drinks with an ethanol content greater than 5 per cent may only be retailed and consumed through hotels (3, 4 and 5 star), specified restaurants, bar/pub/night clubs, duty free shops or certain places assigned by a mayor of the district.
Indonesia and Australia are parties to two free trade agreements; the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) which came into force in January 2010; and the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) which entered into force on 5 July 2020. Wine has been excluded from Indonesia’s tariff commitments under both agreements
IP Australia’s E-commerce guide for Australian business (PDF) provides detailed research for market opportunities for Australian businesses looking to access Indonesia’s 100 million-plus internet users.