Home Blog Alcoholic Beverage Companies Required to Obtain Industrial Business Licenses through OSS Business Licenses | Business Setup | Indonesia Alcoholic Beverage Companies Required to Obtain Industrial Business Licenses through OSS InCorp Editorial Team 13 December 2023 5 minute reading time Table of Contents Classes of Alcoholic Beverage in Indonesia Business Alcohol License Indonesia for Alcoholic Beverage Companies Quality Standards of Alcoholic Beverages Restrictions for Alcoholic Beverage Businesses Business Alcohol License Application in Indonesia with InCorp To further solidify the regulations on the alcoholic beverage industry in terms of production, import, or distribution of alcoholic beverages in Indonesia, the Minister of Industry has recently issued Regulation 17/2019: Control and Supervision of Alcoholic Beverage Industry. Regulation 17/2019 replaced the earlier regulations: Regulation of Minister No. 63/M-IND/PER/7/2014 and the amended version Regulation No. 62/M-IND/PER/8/2015 on the Oversight and Control of Alcoholic Beverage Industry. Regulation 17/2019 addresses matters that include classes of alcoholic beverages, business requirements, such as business alcohol license Indonesia for alcoholic beverage companies, and restrictions for this business in Indonesia. Classes of Alcoholic Beverage in Indonesia According to Regulation 17/2019, alcoholic beverages in Indonesia can be categorized into three classes: Class A: ≤ 5% ethyl-alcohol or ethanol Class B: 5% – 20% ethyl-alcohol or ethanol Class C: 20% – 55% ethyl-alcohol or ethanol Business Alcohol License Indonesia for Alcoholic Beverage Companies Industrial Business License for Alcohol License Indonesia There are two major requirements that business owners now need to fulfill in order to operate their alcoholic beverage businesses. Alcoholic beverage companies should apply for an Industrial Business License (Izin Usaha Industri – IUI) through the Online Single Submission (OSS) system Alcoholic beverage companies must comply with the quality standards of alcoholic beverages. IUI Issuance The Minister is responsible for issuing the IUI by considering the following key aspects: The Negative Investment List (NIL) under the Regulation 44/2016: TheList of Business Fields Which Are Closed and Conditionally Open to Investment Issuance of IUI is done through the OSS system according to Regulation 24/2018: Electronically Integrated Business Licensing Services READ MORE:Business License in Indonesia: Risk-Based Classification ApproachRequirements for Obtaining Business License IndonesiaSecuring Industrial Business License in Indonesia is Now Easier as Requirements Have been Simplified IUI Amendments IUI amendments can be done by submitting the amendment applications. Issues with regard to IUI that can be submitted for amendments include the following, along with their criteria: Ownership, name of the company, person in charge Including information in the Deed of Establishment Address of factory Including address change when the factory location has not changed Class of alcoholic beverage Current class downgrade An increase in production capacity is not allowed New class processing methods must use distillation or fermentation technologies Change of location Establishment of new factories No increase in production capacity Companies merging into one location The new location comprises a single-factory location Built-in capacity is not allowed Compliance with a merged built-in capacity Increase of production capacity Companies have known the production capacities under their existing IUI The Minister appoints the surveyors to perform the production capability audits Must settle the relevant previous excise Procedure Prior to IUI Amendments Before submitting any IUI amendment applications, companies that run alcoholic beverage businesses must get the recommendation issued by the Directorate General of Agro-Industry. The procedure for obtaining the recommendation is shown below: Applying online via SIINas (Industrial National Information System) with NIB, IUI, and NPPBKC Going through administrative review by the Ministry of Industry. The recommendation application will be passed to the Directorate General after successful review. Continuing with substantive review by the Directorate General in five business days. Once approved, the Directorate General will issue the recommendation. IUI Revocation Companies will lose their IUI if the following acts are committed: Volumes produced are greater than the built-in production capacities stated on IUI Classes of alcoholic beverages produced are not covered on IUI No production activities for three consecutive years READ MORE:How To Obtain Risk-Based Business License via OSSPermanent Business License: What You Need to Know About ItPT PMA in Indonesia – Several Business Licenses for One Business Entity Quality Standards of Alcoholic Beverages It is compulsory for alcoholic beverage businesses to meet the quality standards of their products: Production Compliance with classes stated on IUI Only food-grade alcohol with a methanol content of less than 0.01% is allowed Implementation of Good Processed Food Production Practices (CPPOB) Compliance with technical provisions such as product type and class Implementation of Indonesian National Standards (SNI) for certain types of alcoholic beverages Methods of processing Utilization of fermentation processes for all classes Utilization of distillation processes for Class C only Restrictions for Alcoholic Beverage Businesses Companies involved in alcoholic beverage businesses are forbidden to: Combine products with non-food-grade alcohol or other harmful substances Manufacture products with more than 55% ethanol or ethyl alcohol Produce products with a packaging volume of less than 180ml Use and store non-food-grade alcohol Repackage products Business Alcohol License Application in Indonesia with InCorp Embarking on the journey of obtaining your business alcohol license can be a daunting task. Let InCorp alleviate the complexity for you. Our dedicated team is here to streamline the application process, ensuring a hassle-free experience for you. Ready to make your move? Fill out the form below to kickstart your application journey. We are dedicated to guide you through obtaining the business license you need. Our consultants are equipped with a comprehensive knowledge on how to run your business in Indonesia Read Full Bio Pandu Biasramadhan Senior Consulting Manager at InCorp Indonesia An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.