Thousands of Bottles of Balinese Arak Seized by Customs, Identifying the Root Causes
Customs has recorded that around 6,000 bottles of Balinese arak were intercepted between January and August 2026. This arak is part of a total of 16,138 bottles of beverages containing ethyl alcohol (MMEA) seized due to continued illegal circulation.
Adi, the Head of Licensing and Facilities at the DJBC Regional Office for Bali, NTB & NTT, stated that licensing issues and excise stamps are the main obstacles for Balinese arak entrepreneurs. This persists despite the government providing a legal framework through Bali Governor Regulation (Pergub) Number 1 of 2020, which allows businesses, particularly MSMEs, to legalise the production and distribution of Balinese arak.
“Once legalised, Customs can issue the NPPBKC permit, which then enables Balinese arak to be distributed to the public once the permit application is submitted,” he said when met by reporters in Kuta, Badung, on Wednesday (2/9/2026).
However, many entrepreneurs have yet to complete their licensing requirements. This situation is one of the reasons why Balinese arak continues to circulate illegally. Adi noted that in addition to licensing issues, Customs also discovered violations regarding excise stamps on circulating Balinese arak.
“So, the source of the problem is actually twofold: first, the permits, and second, the excise stamps. In the first case, they do not have a permit. In the second case, even if they have a permit, the excise stamps are counterfeit or, in some cases, entirely missing. Those are the common methods,” he explained.
He elaborated that before Customs can grant the NPPBKC permit, entrepreneurs must first complete several permits from various agencies. “Most of the issues stem from permits from the relevant technical departments. To obtain the NPPBKC, requirements include the NIB (Business Identification Number), as well as permits to sell beverages from the Trade Office and the Industry Office. These are sometimes incomplete,” he said.
Balinese Arak Has Export Potential
Beyond the domestic market, Balinese arak that meets all requirements has the potential for export. Adi stated that demand from international consumers could encourage Indonesian entrepreneurs to export Balinese arak.
According to him, one potential market is Europe. Tourists from that region who have tasted Balinese arak while visiting the Island of the Gods are considered potential consumers once they return to their home countries.
“Certainly, Europe is a key market, as many of our tourists come from there. They have already experienced it during their visit to Bali,” he concluded.
Despite the prevalence of illegal products, Adi added that the number of MSMEs processing the legality of Balinese arak has increased since the issuance of Bali Governor Regulation Number 1 of 2020. “It is not a massive increase, but there has been an addition of businesses since the Governor Regulation legalising Balinese arak was released,” he added.