Export Market Guide - Indonesia

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

Unless an exemption has been granted by Wine Australia, grape products exported from Australia must comply with the Food Standards Code. Accordingly, the labelling and wine standards information in Wine Australia’s Export Market Guides should be read in conjunction with Wine Australia’s Licensing and Compliance Guide which contains the requirements of the Food Standards Code and applicable exemptions.

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.