In Indonesia, the trade, production, import, and distribution of alcoholic beverages (“minuman beralkohol” or “minol”) are governed by a complex and highly regulated framework. The Indonesian government enforces strict controls to ensure responsible production, distribution, and consumption of alcoholic beverages, in line with national health, public order, and economic policies.

Any business intending to manufacture, import, distribute, or sell alcoholic beverages must obtain the appropriate licenses from the central and/or regional authorities. Failure to secure these licenses may result in administrative sanctions, suspension or revocation of permits, and, in severe cases, criminal prosecution. This article provides a comprehensive legal overview of alcoholic beverage licensing in Indonesia. It elaborates on the classification of alcoholic beverages (Types A, B, and C), their respective licensing processes, and the key regulatory considerations to ensure full compliance with Indonesian law.

Read more: General Import Regulations and the Planned Implementation of an Excise on Packaged Sweetened Beverages (MBDK) in 2025

Classification of Alcoholic Beverages (Golongan A, B, and C)

Under Indonesian law, alcoholic beverages (“minuman beralkohol” or “minol”) are classified based on their ethanol (ethyl alcohol) content, product type, and intended use or sales channel. This classification determines the regulatory pathway, licensing complexity, excise obligations, and restrictions on distribution and consumption.

Each classification dictates not only the licensing route but also the distribution limitations, reporting duties, and fiscal obligations (e.g., excise duty). The higher the alcohol content, the stricter the supervision and the narrower the permissible distribution channels.

1. Golongan A – Light Alcoholic Beverages (Up to 5% Ethanol)
   Under Indonesian trade and excise regulations, Golongan A refers to alcoholic beverages with an ethanol content not exceeding five percent (≤ 5%) by volume.  This classification covers beverages produced through low-grade fermentation processes that yield mild alcoholic concentration and are commonly consumed for leisure rather than intoxication. Typical Products under Golongan A include:
   1. Beer and malt-based drinks;
   2. Shandy and other light mixed beverages;
   3. Ready-to-drink (RTD) alcoholic sodas;
   4. Fermented fruit beverages with low alcohol content.

      These products are not considered distilled spirits and are therefore treated under a comparatively lenient regulatory regime, although still subject to control on production, labeling, and sales channels.

      Licensing Requirements

      Even though Golongan A beverages are categorised as “light,” they cannot be freely traded without official authorisation. The following licenses and approvals are generally required:

      1. Standard SIUP (Surat Izin Usaha Perdagangan) or NIB through OSS RBA
         • Required for entities engaging in wholesale or retail trade of Golongan A beverages.
         • The OSS (Online Single Submission) system automatically identifies the business risk level as medium-low under the current risk-based licensing framework.
      2. Surat Keterangan Penjual Langsung (SKPL-A)
         • Obligatory for hotels, restaurants, cafés, and other venues that sell Golongan A beverages directly to consumers.
         • Issued by the local trade office (Dinas Perdagangan/DPMPTSP).
         • The permit explicitly lists the premises and limits the scope of sale (on-site consumption only).
      3. Tourism or Hospitality Operating License
         • Required when alcohol is sold within a hospitality setting such as a bar or hotel.
         • Coordinated through Dinas Pariwisata at the regional level.
      4. Excise and Distribution Control
         • Although Golongan A products bear lower excise tariffs, they remain subject to pita cukai (excise band) placement for traceability.
         • Importers must obtain API (Import Identification Number) and be registered with NPPBKC (Excise Business Number) to distribute imported products legally.

2. Golongan B – Medium Alcoholic Beverages (More than 5% up to 20%)
   Golongan B refers to alcoholic beverages containing more than five percent (> 5%) and up to twenty percent (≤ 20%) ethanol by volume. These beverages generally result from natural fermentation of fruits, grains, or other carbohydrates, sometimes followed by blending or mild fortification. They include wines, ciders, sake, and certain fermented fruit liquors. While less potent than distilled spirits, Golongan B products carry a moderate alcohol concentration. They are therefore subject to stricter regulatory oversight than Golongan A, particularly in terms of distribution, labeling, and point-of-sale control.

   Licensing Requirements
   Because Golongan B beverages occupy the medium-risk category, businesses handling them must obtain several layers of authorisation before commencing operations.

   1. SIUP-MB (Alcoholic Beverage Trading License)
      • Mandatory for any company engaging in the importation, wholesale, or distribution of Golongan B alcoholic beverages.
      • Issued by the Ministry of Trade through the Online Single Submission (OSS RBA) system.
      • The SIUP-MB specifically designates the product category (Golongan B) and must be renewed every five years.
   2. SKPL-B (Direct Seller Certificate for Golongan B)
      • Required for businesses that sell directly to consumers, e.g., restaurants, wine bars, hotels, or private clubs.
      • Issued by the regional DPMPTSP following zoning verification and site inspection.
      • Specifies permissible alcohol types, storage facilities, and service conditions (e.g., for on-premise consumption only).
   3. Excise Business Number (NPPBKC)
      • Obtained from the Directorate General of Customs and Excise after verification of production or storage facilities.
      • For importers of foreign wine, cider, or sake, an API-U (General Importer License) is required, along with a dedicated import quota assigned by the Ministry of Trade.

3. Golongan C – High-Strength Alcoholic Beverages (More than 20% up to 55%)
   Under Indonesian law, Golongan C encompasses all alcoholic beverages containing more than twenty percent ( > 20 % ) and up to fifty-five percent ( ≤ 55 % ) ethanol by volume.  These are commonly referred to as distilled or spirituous liquors, produced through distillation or concentration of fermented liquids to achieve high alcohol purity. Examples of Golongan C products include:
   • Whisky, vodka, rum, gin, tequila, brandy, cognac, and similar spirits;
   • Liquor-based liqueurs, aperitifs, or digestifs exceeding 20 % ABV;
   • Locally distilled beverages (arrack, soju, arak bali) that meet purity and packaging standards.

     Because of their high alcohol content and social sensitivity, these beverages fall under the most stringent regulatory category in Indonesia’s licensing regime.

Licensing Requirements

Because Golongan C represents the highest-risk classification, multiple layers of licensing and verification are mandatory before any commercial activity begins.

1. SIUP-MB (Golongan C) — Alcoholic Beverage Trading License
   1. Issued by the Ministry of Trade, via the OSS RBA platform.
   2. Authorises importation, wholesale, and nationwide distribution of Golongan C products.
   3. Must specifically state “Golongan C” on the permit and be renewed every five years.
   4. Applicants must maintain a minimum paid-up capital consistent with medium-to-large enterprise standards and demonstrate warehousing capacity.
2. SKPL-C (Direct Seller Certificate for Golongan C)
   1. Required for hospitality, tourism, and entertainment venues that serve Golongan C beverages directly to consumers, such as 5-star hotels, private clubs, resorts, and airport lounges.
   2. Issued by the regional DPMPTSP or Tourism Office, following inspection and community-zoning clearance.
   3. The permit strictly limits service to on-premise consumption only; take-away or retail sales are prohibited.
3. NPPBKC (Excise Business Number)
   1. Mandatory for all manufacturers and importers of Golongan C products.
   2. Issued by the Directorate General of Customs and Excise after physical inspection of storage or production facilities.
   3. Allows legal possession, distribution, and payment of excise duty for high-alcohol goods.
4. Industrial and Environmental Licenses
   1. Domestic distilleries must obtain Industrial Business Licenses (IUI) from the Ministry of Industry and meet sanitation and safety standards for chemical processing plants.
   2. Environmental permits (UKL/UPL or AMDAL) are required for pollution-control and waste-management compliance.
5. Import Licenses and Quota Allocation
   1. For foreign products, importers must hold API and obtain specific import allocation approval (Surat Persetujuan Impor – SPI) from the Ministry of Trade.
   2. Quotas are strictly regulated and subject to annual review based on domestic consumption reports.

Read More: BPOM Adalah

Regulatory and Social Rationale Behind the Classification of Alcoholic Beverages 

Indonesia’s classification of alcoholic beverages into Golongan A, B, and C reflects a deliberate public policy architecture designed to balance economic liberty, social responsibility, and moral integrity within a diverse cultural landscape. Rather than serving merely as an administrative formality, this tripartite structure represents the state’s pragmatic effort to regulate a sensitive industry in a way that preserves public welfare while maintaining an open investment climate.

At its core, the framework protects public health and safety by differentiating control levels according to alcohol potency. The separation by ethanol content enables the government to calibrate warning labels, taxation, and distribution limits proportionally—lighter controls for low-alcohol beer under Golongan A, and stringent restrictions for spirits and distilled liquors under Golongan C. This proportional approach reduces abuse risk while allowing regulated economic participation.

Equally important is the preservation of public order and moral harmony. Indonesia’s social fabric is deeply influenced by religious norms and community ethics, especially in Muslim-majority regions. Through this classification, business operations involving alcohol remain legally permissible but socially contained, operating only within zones and hours defined by regional regulations (Peraturan Daerah). This system empowers local governments to exercise moral discretion while maintaining national legal coherence, ensuring that economic activity aligns with the community’s ethical standards.

From an economic perspective, the system also embodies sound fiscal governance. Differentiated excise rates (pajak cukai) enable the state to collect revenue proportionate to the product’s alcohol content and perceived public-health risk. High-strength beverages under Golongan C contribute substantially to national excise income, while fiscal disincentives discourage excessive consumption. By promoting licensed and monitored trade, the policy curbs the proliferation of illicit or unregulated alcohol in the domestic market.

The classification further advances Indonesia’s investment and trade balance objectives. Its tiered licensing model provides legal certainty for both domestic and foreign investors, particularly in the hospitality, tourism, and import sectors. Entrepreneurs may engage in Golongan A or B trade under moderate compliance requirements, while Golongan C activities are reserved for entities capable of meeting the highest standards of excise control, safety, and social accountability. This ensures that business growth coexists with moral safeguards and responsible governance.

Culturally, the system mirrors Indonesia’s pluralism. Alcohol is treated as a “restricted commodity” (barang diawasi), lawful but socially managed. Tourism-oriented provinces such as Bali, Batam, Jakarta, and Labuan Bajo implement more permissive frameworks to support economic vitality, whereas conservative regions like Aceh, West Sumatra, or parts of West Java impose stricter controls or even prohibitions. Through decentralised authority, the state grants regional governments autonomy to regulate based on local values while sustaining national legal consistency. This arrangement preserves harmony between economic development and community sensibilities.

The framework is also reinforced by Indonesia’s Risk-Based Licensing Regime under Government Regulation No. 5 of 2021 and the Online Single Submission – Risk-Based Approach (OSS-RBA). Within this model, Golongan A activities are categorised as medium-low risk, requiring standard trade permits and limited oversight; Golongan B as medium-high risk, demanding specialised SIUP-MB licences and excise supervision; and Golongan C as high-risk, necessitating inter-ministerial approvals and intensive regional control. This alignment with modern governance principles ensures proportionality, transparency, and accountability across all tiers of business activity.

Beyond the administrative sphere, the system promotes ethical governance and consumer responsibility. Licensed operators must verify consumer age (minimum 21 years), display clear non-halal and health warnings, prevent sales to intoxicated or underage individuals, and maintain accurate procurement and disposal records. Consumers, in turn, are expected to exercise restraint and respect community norms. In this way, the alcoholic-beverage industry in Indonesia operates not only under a legal licence but also under a social licence to operate, rooted in ethical accountability.

Conclusion

In conclusion, Indonesia’s alcoholic beverage licensing framework is a reflection of the country’s commitment to maintaining a balanced equilibrium between economic development, legal certainty, and social ethics. The classification of Golongan A, B, and C not only establishes regulatory clarity for businesses but also ensures that trade and consumption occur within a controlled and responsible environment. For investors, importers, and hospitality operators, understanding and complying with this framework is essential to achieving operational legitimacy and long-term business sustainability in Indonesia’s regulated alcohol market.

Given the complexity of multi-tiered licensing, from SIUP-MB and SKPL requirements to excise, import quotas, and local zoning compliance, strategic regulatory navigation becomes indispensable. This is where ET Consultant serves as your trusted advisory partner. With a multidisciplinary team of legal consultants, business strategists, and licensing specialists, ET Consultant provides end-to-end assistance in regulatory assessment, document preparation, inter-agency coordination, and ongoing compliance management for alcoholic beverage licensing under Indonesian law.

Whether you are a foreign importer seeking national distribution approval, a hospitality group applying for SKPL, or a domestic producer expanding into the Golongan B or C market, ET Consultant ensures your business operates lawfully, transparently, and efficiently, in full alignment with Indonesia’s evolving regulatory ecosystem. For consultation, licensing strategy, or compliance review, contact ET Consultant today and let our experts guide your entry and success in Indonesia’s highly regulated but promising alcoholic-beverage industry.

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ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.

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