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    Tax Policy on Alcohol
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    Tax Policy on Alcohol

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    Tax Policy on Alcohol
    Indonesia

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    Version Number
    Content Creation Date
    		Publishing DateSection(s) Updated & Reason(s) for Update
    V0
    10 Feb 2025
    		12 Feb 2025N/A (new report)
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    1. General Requirements on Tax Policy for Alcohol Goods

    In Indonesia, the Ministry of Finance (MoF) is the authority responsible for overseeing national policies and regulations related to taxes and duties on all trade goods. Specifically, in the case of alcoholic products, MoF focuses on determining the duty tariffs (local language: cukai) for alcoholic goods, including alcoholic beverages.

    The Ministry of Finance (MoF) sets the tax and duty tariffs for alcoholic goods under Ministry of Finance Decree No. 160 of 2023 on Duty Tariffs for Ethyl Alcohol, Beverages Containing Ethyl Alcohol, and Concentrates Containing Ethyl Alcohol [1]. The key points of the regulation include the establishment of duty tariffs for:

    • Ethyl Alcohol (or ethanol)
    • Beverages containing ethyl alcohol (including alcoholic beverages)
    • Concentrates containing ethyl alcohol

    Figure 1. Excerpt of Ministry of Finance Decree No. 160 of 2023 [1]

    The duty tariffs for alcoholic goods are outlined in Articles 2-4 and are clearly listed in the Annex of Ministry of Finance Decree No. 160 of 2023 [1]:

    1. Ethyl alcohol or ethanol

    Class

    Ethyl alcohol content

    Duty tariff (per liter)

    Domestic product

    Import product

    No Class

    At any content

    IDR 20,000 (USD 1.25)

    IDR 20,000 (USD 1.25)

    1. Beverages Containing Ethyl Alcohol

    Class

    Ethyl alcohol content

    Duty tariff (per liter)

    Domestic product

    Import product

    A

    Up to 5% 

    IDR 16,500 (USD 1.05)

    IDR 16,500 (USD 1.05)

    B

    >5 – 20%

    IDR 42,500 (USD 2.68)

    IDR 53,000 (USD 3.35)

    C

    >20 – 55%

    IDR 101,000 (USD 6.38)

    IDR 152,000 (USD 9.60)

    1.  Concentrates Containing Ethyl Alcohol

    Class

    Type of concentrate containing ethyl alcohol

    Duty tariff

    Domestic product

    Import product

    No Class

    Liquid form 

    IDR 228,000 (USD 14.40) per liter

    IDR 228,000 (USD 14.40) per liter

    No Class

    Solid form

    IDR 1,000 (USD 0.06) per gram

    IDR 1,000 (USD 0.06) per gram

    Notes
    USD values are estimated based on the current exchange rate as of the date of this report.

    2. Specific Requirements on Tax Policy per Product

    2.1 Beer

    Beer that contains 4-7% alcohol may be classified into Class A (ethanol content up to 5%) or Class B (ethanol content >5 – 20%). The duty tariff can refer to table number 2 (Beverages containing ethyl alcohol) in Section 1 above.

    2.2 Ready-to-drink beverages (mainly Chuhai*)

    Ready-to-drink alcoholic beverages (mainly Chuhai) may be classified into Class A (ethanol content up to 5%), Class B (ethanol content >5 – 20%), or Class C (ethanol content >20 – 55%). The duty tariff can refer to table number 2 (Beverages containing ethyl alcohol) in Section 1 above.

    2.3 Whisky

    Whisky that contains around 45% alcohol may be classified into Class C (ethanol content >20 – 55%). The duty tariff can refer to table number 2 (Beverages containing ethyl alcohol) in Section 1 above.

    Conclusion
    1. In Indonesia, the Ministry of Finance (MoF) is the authority responsible for setting the tax and duty tariffs for alcoholic goods under Ministry of Finance Decree No. 160 of 2023 on Duty Tariffs for Ethyl Alcohol, Beverages Containing Ethyl Alcohol, and Concentrates Containing Ethyl Alcohol.
    2. The duty tariffs are applied for:
      1. Ethyl Alcohol (or ethanol)
      2. Beverages containing ethyl alcohol (including alcoholic beverages)
      3. Concentrates containing ethyl alcohol
    3. Beer, ready-to-drink alcoholic beverages (mainly Chuhai), whisky, and other alcoholic beverages fall under the category of beverages containing ethyl alcohol. The applicable duty tariffs are outlined in Table 2 of Section 1, with the specific rates varying depending on the class of the alcoholic beverages:
      1. Beer: Class A or B
      2. Ready-to-drink alcoholic beverages (mainly Chuhai): Class A, B, or C
      3. Whisky: Class C

    3. References

    1. The Ministry of Finance Decree No.160 Year 2023 on Duty Tariffs on Ethyl Alcohol, Beverages Containing Ethyl Alcohol, and Concentrates Containing Ethyl Alcohol

    https://jdih.kemenkeu.go.id/download/fa52d458-cdd7-4554-aed2-7a649331bb40/2023pmkeuangan160.pdf


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