Indonesia is a country where Islam is the predominant religion, but alcoholic beverages are still distributed and consumed.

This article provides detailed information about the alcohol market in Indonesia, targeting Japanese restaurant owners and overseas business development managers considering market entry. It covers Indonesian views on alcohol, distribution channels, and category-specific insights on beer, whiskey, sake, shochu, wine, and other beverages.

Alcohol Situation in Indonesia

A Limited Market

Although approximately 87% of Indonesia’s population is Muslim and the religion prohibits the consumption of alcohol, alcoholic beverages are still available in the country. As a result, the target market for alcoholic beverages consists primarily of the approximately 13% non-Muslim population, as well as foreign expatriates and tourists.

Among non-Muslims, daily alcohol consumption is not as widespread as in Japan. However, a significant number of ethnic Chinese Indonesians do enjoy alcohol. In major cities such as Jakarta, the presence of foreigners further contributes to a viable market segment.

High Import Duties

Indonesia imposes very high tariffs on alcoholic beverages.

According to JETRO, alcoholic beverages imported from Japan are subject to the following tariffs: IDR 14,000 (approx. USD 0.90) per liter for beer, 90% for other brewed or mixed alcoholic beverages, and 150% for distilled spirits. In addition, excise taxes are levied based on the alcohol content.

These taxes significantly increase retail prices. In most cases, alcoholic beverages other than beer are sold at two to four times the prices in Japan.

Reference: JETRO “Indonesia | Import Regulations and Procedures for Alcoholic Beverages”

Restrictions on Availability and Sales Conditions

Unlike in Japan, beer cannot be easily purchased at convenience stores or cafés in Indonesia. In the past, beer was available at convenience stores, but due to legal changes, sales are now restricted to supermarkets with a certain minimum floor area and licensed liquor shops (with Bali being an exception, where convenience stores may still sell beer).

Hard liquors other than beer can only be purchased at liquor shops. Restaurants and cafés typically do not offer alcoholic beverages. During the Islamic fasting month (Ramadan), liquor shops in shopping malls may temporarily close, and when restaurants do serve alcohol, they may do so discreetly—for example, using teapots to conceal the contents.

Status of Alcoholic Beverages by Category in Indonesia

This section provides an overview of the distribution and pricing of various categories of alcoholic beverages. Final retail prices may vary depending on the store, so please consider the following as general reference prices seen at liquor shops.

Prices listed reflect conditions at the time of writing.

Beer

Beer is available at large supermarkets and liquor shops, with a typical price of approximately JPY 200–300 (USD 1.30–1.95) per 330ml can. Due to the relatively easy process of obtaining a liquor license, beer is served not only at izakaya and bars, but also at some restaurants and cafés.

Among alcoholic beverages in Indonesia, beer is the only one that can be enjoyed at a price close to that in Japan. Due to Indonesia’s colonial history under the Netherlands, a wide variety of domestically produced beer is available.

Recently, craft beer production has been growing, particularly in Bali. While more expensive, the quality is good enough to warrant trying. Craft beers typically cost around IDR 45,000–100,000 (approx. USD 2.90–6.45) per 330ml can.

Japanese brands such as Sapporo, Asahi, and Kirin are also available, usually at about double the price compared to Japan.

Examples of Popular Beer Brands in Indonesia

• Bintang: Indonesia’s leading domestic brand and the most widely consumed beer. Approx. IDR 25,000 (USD 1.60) per 330ml can.
• Bali Hai: Another domestic brand and a direct competitor to Bintang. Bali Hai Draft (320ml can) costs about IDR 20,000 (USD 1.30).
• Heineken: Although originally Dutch, it is produced locally in Indonesia and is thus reasonably priced. Approx. IDR 35,000 (USD 2.25) per 330ml can.

Whiskey

Whiskey is available at liquor shops and is generally sold at about two to three times the price in Japan. It is served at izakaya, bars, and upscale dining restaurants that cater to foreign customers. Among non-beer alcoholic beverages, whiskey is particularly popular. However, most establishments sell it by the bottle rather than by the glass.

Recently, Suntory Kakubin has begun to circulate within Jakarta, and some venues have started offering Kakubin highballs (“Kaku-High”). However, this is a premium item, priced at approximately IDR 100,000 (approx. USD 6.45) per glass at restaurants.

Domestically produced whiskey, including brands from Bali, is also available. These typically retail at around IDR 300,000 (approx. USD 19.35) per 700ml bottle.

Examples of Popular Whiskey Brands in Indonesia

• Jameson Irish Whiskey: A well-known affordable brand commonly found in liquor shops. Approx. IDR 450,000 (USD 29.00) per 700ml bottle.
• The Glenlivet 12 YO: A popular mid-range Scotch whisky. Approx. IDR 900,000 (USD 58.00) per 700ml bottle.
• Batavia: Locally produced in Bali. Approx. IDR 300,000 (USD 19.35) per 700ml bottle.

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Japanese Sake

Japanese sake is available at liquor shops, typically at three to four times the price in Japan.

While it is commonly found in izakaya, it is rarely available in bars. Although the category of “sake” is generally recognized, it is not as popular as whiskey. Aside from a few Japanese-run izakaya, sake is primarily sold by the bottle.

Examples of Popular Japanese Sake in Indonesia

• Dassai Junmai Daiginjo 45: Well-known among Japan enthusiasts and often seen in izakaya and liquor shops. Approx. IDR 750,000 (USD 48.40) per 750ml bottle.
• Sesshu Otokoyama: One of the most affordable Japanese sake options available. Approx. IDR 470,000 (USD 30.35) per 750ml bottle.

Shochu

Shochu is available at liquor shops, though it is less commonly stocked and generally sells at three to four times the price in Japan. It is less well-known and less popular than Japanese sake. Outside of a few Japanese-operated izakaya, it is typically sold by the bottle. Shochu is rarely seen at restaurants other than izakaya.

Examples of Popular Shochu Brands in Indonesia

• Beniohtome: A brand frequently found not only in izakaya but also in liquor shops. Approx. IDR 650,000 (USD 41.90) per 900ml bottle.
• Daiyame: A brand that has recently become more visible in izakaya and is also available in retail. Approx. IDR 650,000 (USD 41.90) per 900ml bottle.

Wine

Wine is available at liquor shops and generally sells at two to four times the price in Japan. It is also served at izakaya, bars, and dining establishments popular among foreigners. Among non-beer alcoholic beverages, wine is one of the more favored options. However, restaurants that sell wine by the glass are relatively few, and when available, it is usually limited to house wines. Bottled sales are the norm. Although Bali-produced wine is also distributed, prices tend to be on the higher side.

It is worth noting that red wine is called anggur merah in Indonesian. However, a locally brewed fermented drink also goes by the name Anggur Merah. The version sold by the company Orang Tua is well-known and retails at a few hundred yen per bottle, though it is a different product from traditional wine.

Examples of Popular Wines in Indonesia

• Cono Sur Cabernet Sauvignon: A well-known Chilean wine. Approx. IDR 250,000 (USD 16.10) per 750ml bottle.
• SABABAY: A leading wine brand produced in Bali. Price varies widely, but affordable red wine options start around IDR 200,000 (USD 12.90) per 750ml bottle.

Others

Recently, due to the influence of Korean dramas, soju (Korean distilled liquor) has gained significant recognition. Well-known brands such as JINRO are now commonly seen in the market. Non-alcoholic versions labeled as halal soju have also been introduced and are served in areas with large Muslim populations.

In Bali, a traditional distilled spirit called arak has long existed and is available for purchase at liquor shops. Its taste is similar to that of Japanese shochu.

Examples of Other Popular Alcoholic Beverages in Indonesia

• JINRO: A famous Korean soju brand frequently found in Korean barbecue restaurants. Approx. IDR 90,000 (USD 5.80) per 360ml bottle.
• Dewi Sri Arak Bali: A well-known arak brand produced in Bali. Approx. IDR 160,000 (USD 10.30) per 350ml bottle.

A Limited but Steady Demand for Alcohol in Indonesia

Although Indonesia’s alcohol market is limited due to its predominantly Muslim population, there is steady demand. In particular, alcoholic beverages such as beer, whiskey, and wine are popular among non-Muslim citizens and foreign residents.

In tourist destinations like Bali, new-generation local alcoholic beverages—such as craft beer and domestically produced whiskey—are also emerging. These products reflect a growing trend and suggest potential market expansion in the future.

When considering alcohol sales in Indonesia, it is essential to take into account the high import duties and sales restrictions, while clearly defining the target audience. This sector can be regarded as a niche market with untapped potential.