Sale of alcoholic beverages in Indonesia

The sale of alcoholic beverages in Indonesia is a strictly regulated activity. Alcohol is an excisable good, so its production, storage, and sale are under state control. For a restaurant, this means one thing: without appropriate permits, alcohol cannot be sold.

An alcohol license is a mandatory document that gives a restaurant the right to legally sell and serve alcoholic beverages in Indonesia. Operating without a license is considered a violation of the law and can result in fines, confiscation of products, suspension of operations, and closure of the establishment.

Why a license is mandatory

1. Compliance with Legislation
   The license confirms compliance with the requirements of the Ministry of Trade, tax authorities, and customs and excise bodies. Selling alcohol without a permit is a violation of the law.
2. Legal Business Protection
   During inspections, a restaurant must confirm the legality of alcohol purchases, the presence of excise stamps, proper product storage, and the assortment's compliance with the permitted category.
3. Financial Security
   Fines for illegal alcohol sales can significantly exceed the cost of licensing. Legal registration reduces the risks of business blocking and investment loss.
4. Commercial Efficiency
   Having a license allows for the creation of a full-fledged alcoholic beverage menu, increasing the average check and working with the tourist segment.

Categories of alcoholic products in Indonesia

Category A
Up to 5 percent alcohol. Beer and low-alcohol beverages.

Category B
From 5 to 20 percent. Wine, sparkling wine, cider, sake, and similar beverages.

Category C
From 20 to 45 percent. Whiskey, rum, gin, vodka, and other strong spirits.

The license must correspond to the categories of products that the restaurant plans to sell. Strong alcohol cannot be sold if only a Category A permit is held.

NPPBKC Registration

It is important to understand that an alcohol sales license is not the only mandatory document. Since alcohol is an excisable good, a restaurant must obtain NPPBKC registration.

NPPBKC, Nomor Pokok Pengusaha Barang Kena Cukai, is the registration number for entrepreneurs dealing with excisable goods. It is issued by the Directorate General of Customs and Excise.

This number is mandatory for companies that:

• store alcoholic products
• purchase alcohol from suppliers
• sell alcohol to end consumers

Without NPPBKC, the activity is considered illegal, even if the restaurant has an alcohol sales license.

Both documents are necessary for a restaurant to operate legally. The absence of one of them creates a legal risk during any inspection.

Additional Requirements

In addition to the license and NPPBKC, regulatory bodies pay attention to:

• the correct KBLI business code in the OSS system
• valid tax registration
• a lease agreement or proof of ownership
• compliance of the premises with storage requirements
• purchasing alcohol only from official distributors
• the presence of excise stamps on products

Even with documents, non-compliance of actual activity with the declared category can lead to sanctions.

Steps to obtain NPPBKC

1. Business Structure Verification
   The company must be registered through the OSS system and have a correct KBLI business code.
2. Document Preparation
   Founding documents, tax registration, premises documents.
3. Premises Inspection
   Assessment of compliance with storage requirements for excisable products.
4. Application Submission
   Submission of documents to customs and excise authorities.
5. Obtaining a Registration Number
   After verification, the company is assigned an NPPBKC.

The timeline depends on the completeness of documents and the correctness of business registration. On average, the process takes up to several weeks. Errors in the business code or non-compliance of the premises with requirements can significantly increase the timeline.