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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.

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All regulatory information for exporting wine to Indonesia, including the regulatory environment, duties and taxes, and permitted additives.

Indonesia overview

Indonesia’s middle class is booming, estimated at 45 million people, and with a GDP exceeding one trillion dollars it is a market with significant economic potential.  Indonesia is the largest economy in South East Asia and the International Monetary Fund has projected it to be the world’s seventh largest economy by 2030. Indonesia’s young population is driving demand for international brands and imported products and this has allowed for opportunities for premium wine.

Indonesia is a nation made up of 17,508 islands in South East Asia. It is the world's largest archipelagic state. The main islands are Java, Sumatra, Kalimantan, New Guinea and Sulawesi. It is the fourth most populous country in the world and the most populous Muslim nation. Indonesia was colonized by the Dutch until 1945. Since then, Indonesia has had a turbulent history including political instability and corruption, periods of rapid economic growth and decline, environmental catastrophe, and a recent democratisation process.

In November 2006, Australia and Indonesia agreed to a new broad-ranging security treaty. 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 are no changes to Indonesia’s tariff rates for wine. Indonesia was a founding member of ASEAN in 1967 and entered the ASEAN Economy Community in 2016. Indonesia is a member of the G20 group of nations. 

Indonesia is a predominantly Muslim country and alcohol cannot be consumed under Islam. In general, Indonesians are fairly tolerant towards alcohol. 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 wealth. Wine consumers include middle-income and wealthy Indonesians, the expat community and tourists.

A middle class is rapidly emerging, particularly in Jakarta and Bali, with rising incomes and a new generation interested in incorporating wine into their lifestyles. The influence of foreign visitors, an increase in Western educations and the appeal of Western lifestyles have been attributed to the growing trend. Owing to its strong tourist trade, Bali accounts for the highest volume of wine sales in the region. 

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.

The wine market was estimated by Global Trade Atlas at approximately 914 kilolitres in 2022 valued at almost AUD $19 million. Australia is the number one supplier to the Indonesian market by both volume and value. Australia is followed by France, Italy, Chile and New Zealand. Around 92 per cent of wine exports are red wines, although white wines are preferred in Bali. 

Indonesian Cultural Awareness Training

This virtual tailored workshop will provide you with a strong understanding of the cultural aspects of doing business in Indonesia and equip you with tools to succeed in doing business, building relationships and working with Indonesian customers. You will also gain insight from members of the wine trade with experience in market who will discuss the main intercultural challenges they have faced, the barriers to effective communication and their top tips to help others succeed by doing business.

 

 

Regulatory environment

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 is cited in Regulation No. 27 of 2017 – Registration of Processed Food (as amended by Regulation No. 7 of 2021). Regulation No. 5 of 2021 – Safety and Quality Standards of Alcohol Beverages took effect in 2021 replacing Regulation No. 14 of 2016, and is also administered by BPOM. The Ministry of Health administers Regulation No. 11 of 2019 - Food Additives.

Customs tariffs are governed by Law No. 10 of 1995. The Ministry of Finance administers Regulation No. 158 of 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.

Austrade’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.
 



This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.

Levy payers/exporters
Non-levy payers/exporters
Find out more

This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.