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Pushing the boundaries of local wine
While Indonesian wine holds promise, the industry could do with some help to improve distribution channels.
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Let’s talk about wine: Joshua says the local industry must overcome the impression that Indonesian wines are of lower caliber than their European or Australian counterparts. (JP/Yohana Belinda/Yohana Belinda)
T
he craft of winemaking has come a long way in Indonesia over the past decade, from humble beginnings in East Java's hip-hop community via burgeoning artisanal products to big operations. Bali plays a central role in the business today.
With a predominantly Muslim population, alcohol consumption is low in Indonesia. Yet, Indonesians have been making alcoholic drinks for centuries. Tuak, a local liquor made from palm sugar that contains about 8 percent alcohol, can be found in shops around Indonesia, especially in Sumatra and Lombok. The fermented mixture of coconut juice and other fruits that goes into Arak Bali, another popular alcoholic beverage, ranges in alcohol content from 30 to 50 percent.
Per capita alcohol consumption among adults aged 15 and older dropped to an estimated 0.33 liters in 2022, according to Statistics Indonesia (BPS) data, falling significantly from the prior year's figure of 0.36 liters and thereby continuing a downward trend.
Nevertheless, the domestic wine industry has enormous market potential, claims chef and entrepreneur Vania Wibisono, who is also the founder of the Indonesian Wine Community.
Unsurprisingly, much of the demand is driven by Bali as an international tourism magnet, and winemakers are hoping that the local industry will develop as visitors return to the Island of the Gods now that the COVID-19 pandemic lies behind us.
Exports of Indonesian wine are still small. According to data from the Observatory of Economic Complexity (OEC), US$177,000 worth of wine was exported to Singapore in 2021, followed by Malaysia ($32,200), Australia ($6,040), Switzerland ($1,560) and Timor-Leste ($1,560).
That suggests that Bali will remain the primary market for local wine, at least for now.
