Licensing Requirements for F&B Businesses Selling Alcoholic Beverages in Indonesia (Regulatory Update 2025–2026)

Managing Regulatory Complexity in Indonesia’s F&B Sector

Indonesia’s Food & Beverage (F&B) industry continues to grow rapidly, particularly in sectors such as restaurants, bars, hotels, and entertainment venues that offer alcoholic beverages. While the business opportunity is significant, the sale and distribution of alcohol in Indonesia are strictly regulated by the government because alcoholic beverages are categorized as controlled goods and excisable products.

For investors and business operators, understanding the licensing framework for F&B businesses selling alcoholic beverages is essential to avoid regulatory risks such as administrative sanctions, temporary closure of operations, or revocation of business licenses. This article outlines the latest regulatory framework as of 2025–2026, including the required licenses, regulatory authorities, and the licensing process through Indonesia’s Online Single Submission Risk-Based Approach (OSS-RBA) system.

1. Regulatory Framework for Alcoholic Beverages in Indonesia

The distribution and sale of alcoholic beverages in Indonesia are governed by multiple regulations across sectors including investment, trade, tourism, and excise. The primary legal framework includes:

• Law No. 11 of 2020 on Job Creation

• Government Regulation (GR) No. 5 of 2021 on Risk-Based Business Licensing

• Government Regulation No. 28 of 2025 on the Implementation of Risk-Based Business Licensing (updated OSS-RBA framework)

• Government Regulation No. 29 of 2021 on the Trade Sector

• Minister of Trade Regulations on the Control and Supervision of Alcoholic Beverages

• Minister of Tourism Regulations regarding tourism businesses permitted to sell alcoholic beverages

• Regional Government Regulations (Perda) concerning the distribution and control of alcoholic beverages

With the implementation of the OSS-RBA system, business licensing in Indonesia is now processed through a centralized digital platform that integrates multiple ministries and government agencies. This framework aims to improve transparency, streamline licensing procedures, and provide greater legal certainty for investors.

2. Types of F&B Businesses Allowed to Sell Alcoholic Beverages

Not all F&B businesses in Indonesia are permitted to sell alcoholic beverages. The government restricts alcohol sales to specific types of businesses considered capable of managing and supervising alcohol distribution.

Generally, alcoholic beverages may be sold in the following establishments:

• Star-rated hotels

• Certain types of restaurants

• Bars and pubs

• Nightclubs

• Entertainment venues and lounges

• Designated tourism areas

However, the final authorization often depends on local government policies, as regional governments have the authority to regulate zoning, operational hours, and permitted locations for alcohol sales.

Basic Business Licenses for F&B Businesses

Before obtaining a license to sell alcoholic beverages, an F&B business must first secure basic business licensing through the OSS system.

1. Business Identification Number (Nomor Induk Berusaha – NIB)

The Business Identification Number (NIB) is the primary legal identity for businesses operating in Indonesia and is issued through the OSS system. The NIB functions as:

• Official business identification

• Company registration certificate

• Import identification number (if applicable)

• Customs access for import/export activities

When registering an F&B business, the company must select the appropriate Indonesian Standard Industrial Classification (KBLI) corresponding to its activities. Examples include:

• KBLI 56101 – Restaurant

• KBLI 56301 – Bar

• KBLI 56302 – Nightclub

Selecting the correct KBLI classification is critical, as it determines the additional licensing requirements that apply to the business.

2. Business Standard Certificate

Under the risk-based licensing framework, most F&B businesses fall into the medium to high-risk category, which means they must obtain a Business Standard Certificate before fully operating.

The certification process generally requires compliance with several operational and technical standards, including:

• Food safety and sanitation standards

• Location suitability and zoning requirements

• Operational standards for restaurants or entertainment venues

• Tourism sector compliance requirements

Once all commitments have been fulfilled and verified by the relevant authorities, the certificate will be officially validated, allowing the business to operate legally.

Special License for Selling Alcoholic Beverages

In addition to basic business licenses, F&B businesses intending to sell alcoholic beverages must obtain specific licenses related to alcohol distribution.

1. Alcoholic Beverage Trading License (SIUP-MB)

The Alcoholic Beverage Trading License (Surat Izin Usaha Perdagangan Minuman Beralkohol – SIUP-MB) is a special license required for businesses involved in the sale or distribution of alcoholic beverages.

This license is required for activities such as:

• Selling alcoholic beverages directly to consumers in restaurants or bars

• Distributing alcoholic beverages within entertainment venues

• Conducting alcohol sales through licensed hospitality establishments

SIUP-MB is typically issued by the local government through the OSS system, after the business fulfills administrative and technical requirements.

Common requirements for obtaining a SIUP-MB include:

• Valid NIB and company legal documents

• Restaurant, bar, or hospitality business license

• Recommendation from the local government

• Proof of business premises ownership or lease agreement

2. Excise License (NPPBKC)

Alcoholic beverages are classified as Excisable Goods (Barang Kena Cukai) under Indonesian law. As a result, certain business actors such as manufacturers, importers, or distributors must obtain a Registered Excise Entrepreneur Number (Nomor Pokok Pengusaha Barang Kena Cukai – NPPBKC) issued by the Directorate General of Customs and Excise.

However, restaurants and bars that only sell alcoholic beverages directly to consumers typically do not require this license, provided that the products are sourced from authorized distributors with valid excise permits.

Classification of Alcoholic Beverages in Indonesia

Alcoholic beverages in Indonesia are categorized based on their alcohol content:

Category	Alcohol Content
Category A	Up to approximately 5% alcohol
Category B	More than 5% up to 20% alcohol
Category C	More than 20% up to 55% alcohol

Different categories may be subject to varying levels of distribution control and sales restrictions.

Role of Local Governments

In addition to national regulations, regional governments play a crucial role in regulating alcohol distribution through local regulations (Perda).

These regulations typically govern:

• Permitted zones for alcohol sales

• Operational hours for establishments selling alcohol

• Types of businesses allowed to sell alcoholic beverages

• Distribution control mechanisms

• Administrative sanctions for violations

As a result, alcohol sales regulations can differ significantly between regions in Indonesia.

Legal Risks of Non-Compliance

Businesses that sell alcoholic beverages without the proper licenses may face various legal sanctions, including:

• Written warnings

• Administrative fines

• Temporary closure or sealing of business premises

• Revocation of business licenses

• Criminal penalties in certain cases involving illegal distribution or excise violations

Ensuring regulatory compliance is therefore essential for businesses operating in the F&B sector.

Conclusion

Operating an F&B business that sells alcoholic beverages in Indonesia requires a combination of general business licensing and specific alcohol-related permits. Businesses must first obtain an NIB through the OSS system, comply with the required business standard certification, and secure a SIUP-MB license before selling alcoholic beverages.

Additionally, investors must pay close attention to local government regulations, which may impose further restrictions on alcohol sales depending on the region.

By understanding the applicable regulatory framework and fulfilling all licensing requirements, businesses can operate legally, minimize regulatory risks, and ensure sustainable operations in Indonesia’s growing F&B market.

Why Advisory Support Matters

In this environment, having the right partner is essential.

As a Korean consulting firm specializing in immigration and visa services, tax and accounting, and legal advisory, we help investors simplify the process and stay fully compliant.

We support clients by:

• Handling end-to-end business licensing

• Providing clear regulatory guidance

• Ensuring tax and legal compliance

• Facilitating visa and work permits for foreign teams

  
  

A Practical Advantage

With the right advisory support, businesses can:

• Enter the market faster

• Avoid costly compliance mistakes

• Focus on operations and growth

In a highly regulated sector like alcohol-related F&B, the difference between delay and success often comes down to execution and having the right expertise in place.