Do you have any questions regarding beer import regulation in Indonesia?
The beer importation market in Indonesia is a tightly regulated industry, governed by laws designed to balance public health, moral values, and the growth of the domestic beer industry. As part of the broader regulatory framework for alcoholic beverages, beer import rules are precise and require careful adherence.
Understanding the legal framework and compliance requirements is essential for businesses looking to enter this market to avoid potential risks and maximize opportunities.
Key Takeaways
- Stringent Licensing Requirements: Beer imports in Indonesia are restricted to companies holding an Approved Importer of Alcoholic Beverages (IT-MB) license, along with an Importer Identification Number (API) and Import Approval (PI).
- Import Quotas to Protect Domestic Industry: The government imposes annual import quotas to control the market and support local beer producers.
- Restricted Distribution Channels: Imported beer can only be sold in licensed locations such as hotels, restaurants, and bars, but not in traditional markets or general retail stores.
- Designated Entry Ports: Beer imports are allowed only through specific ports, including Tanjung Priok (Jakarta), Tanjung Perak (Surabaya), and Benoa (Bali).
- High Taxes and Excise Duties: Beer is subject to excise taxes, import duties, luxury goods sales tax (PPnBM), and value-added tax (VAT), significantly increasing the cost of imports.
- Compliance Standards for Importers: Imported beer must meet Indonesian National Standards (SNI) and be registered with the National Agency for Drug and Food Control (BPOM).
- Strict Sanctions for Violations: Non-compliance can result in seizure of goods, administrative fines, license revocation, and potential criminal charges under Customs and Trade Law.
Legal Basis for Beer Import Restrictions
The following laws and regulations govern beer importation in Indonesia:
- Minister of Trade Regulation No. 25 of 2022: Amendments to Minister of Trade Regulation No. 20 of 2021 concerning import policies and regulations.
- Minister of Trade Regulation No. 25 of 2021: Concerning the distribution and supervision of alcoholic beverages.
- Law No. 39 of 2007 on Excise: Governs excise tax policies for alcoholic beverages.
- Minister of Finance Regulation No. 158 of 2021: Outlines excise tariffs for alcoholic beverages, including beer.
These laws ensure a tightly regulated process, from import approval to distribution, while safeguarding domestic beer production.
Key Provisions on Beer Importation
Indonesia strictly regulates beer imports to ensure compliance with national laws and protect domestic industries. Only licensed companies with the appropriate permits are authorized to import beer, and individuals or unlicensed entities are prohibited from engaging in this activity.
1. Importation by Licensed Companies Only
- Beer imports are exclusively conducted by companies holding a special license as an Approved Importer of Alcoholic Beverages (IT-MB).
- Individuals or unlicensed entities are strictly prohibited from importing beer.
2. Import Quota Restrictions
- The government sets annual import quotas based on domestic market needs.
- These quotas aim to protect local beer producers by limiting foreign competition.
3. Importing Company Requirements
To legally import beer, companies must:
- Hold a valid Importer Identification Number (API).
- Be registered as an IT-MB with the Ministry of Trade.
- Obtain Import Approval (PI) for every shipment from the Ministry of Trade.
4. Designated Entry Ports
- Beer imports are restricted to specific ports with Bonded Logistics Centers (PLB):
- Tanjung Priok (Jakarta), Tanjung Perak (Surabaya), Benoa (Bali).
- Belawan (Medan), Tanjung Emas (Semarang), Bitung (Bitung), and Soekarno-Hatta (Makassar).
5. Restricted Distribution
- Imported beer can only be sold in licensed locations such as:
- Hotels, restaurants, bars, and licensed outlets.
- It is strictly prohibited to sell beer in traditional markets or general retail stores.
Taxes and Excise for Imported Beer
Beer is classified as a Taxable Excise Product (BKC) and is subject to high taxation, including:
- Excise on Alcoholic Beverages: Based on alcohol content and volume.
- Import Duties: Determined by the beer’s HS Code classification.
- Luxury Goods Sales Tax (PPnBM): Ranges up to 40%, depending on classification and type.
- Value Added Tax (VAT): Set at 11%.
These taxes significantly increase the cost of imported beer, making compliance with all import procedures crucial for businesses to remain profitable.
Prohibitions Related to Beer Importation
Strict rules are in place to ensure compliance:
- Licensing Requirements: Importing beer without an API, IT-MB, or PI license is prohibited. Non-compliant products will be confiscated by customs.
- Product Standards: Imported beer must meet Indonesian National Standards (SNI) and be registered with the National Agency for Drug and Food Control (BPOM).
- Unrestricted Sales: Beer cannot be sold in unlicensed outlets or freely in the market.
Sanctions for Violations
Reporting Obligations:
Non-compliance with beer import regulations can lead to severe penalties, including:
- Seizure of Goods: Confiscation of non-compliant products by customs authorities.
- Administrative Fines: Financial penalties imposed on violating companies.
- Revocation of Business Licenses: IT-MB status or business licenses may be revoked for breaches of regulations.
- Criminal Penalties: Severe violations can result in criminal charges under Customs and Trade Law.
How Permitindo Can Help
Navigating Indonesia’s stringent beer import regulations can be overwhelming for businesses. Permitindo offers expert Business License Registration services, guiding companies through the process of obtaining essential permits like IT-MB and API.
With our assistance, businesses can ensure full compliance with the laws, secure import approvals, and streamline operations to succeed in Indonesia’s regulated market. Feel free to contact us by filling in the form below or reach out directly via WhatsApp for personalized assistance.