Badung, Bali. Indonesia’s alcoholic beverage industry contributed about Rp 9.3 trillion ($554 million) to state revenue in 2025, the Industry Ministry said on Thursday.

The figure comprises Rp 8.92 trillion in excise revenue from domestically produced alcoholic beverages and Rp 361 billion from imported products, according to Putu Juli Ardika, director general of agro-based industries at the ministry.

In addition to excise revenue, Indonesia earned $15.75 million in foreign exchange from alcoholic beverage exports between January and November 2025, Putu Juli said.

The largest export contribution came from category C alcoholic beverages — products with alcohol content above 20% — including Balinese arak. Key export destinations include Thailand, China, the Netherlands, and the United Arab Emirates.

Putu Juli said demand for Indonesian-made alcoholic beverages continues to grow, supported by strong links between the industry and local traditions across the archipelago. Beyond Balinese arak, North Sumatra produces tuak, Nias is known for tuo nifaro, East Java for legen, East Nusa Tenggara for sopi, and Papua for swansrai.

He said the distinctive characteristics of traditional alcoholic drinks in each region reflect Indonesia’s cultural richness, closely tied to customary ceremonies, religious rituals, and symbols of social cohesion.

“The diversity of Indonesia’s traditional alcoholic beverages reflects an invaluable cultural heritage and local wisdom that few countries can match,” Putu Juli said.

He added that Indonesia’s natural resources and tourism sector further strengthen the industry’s growth potential. Bali, which receives about 45% of all foreign tourists visiting Indonesia, offers significant opportunities to further develop Balinese arak for both tourism consumption and export expansion.

“This is not only to support the tourism sector, but also to advance our export vision for alcoholic beverages and serve as a new source of economic growth for Bali,” he said.

Alcoholic beverages — particularly category C products — are subject to strict government oversight, with production and distribution limited to licensed companies.

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