Your Ultimate Bali Guide

Why Is Alcohol So Expensive in Bali?

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You don’t need to worry about finding alcohol drinks in Bali. Alcohol can be found easily on the island. However, the price is higher than in many western cities and other tropical tourist destinations in Asia.

Excise and Import Tax

What makes the alcohol expensive in Bali is the excise and import tax. As one of the products with limited distribution in Indonesia (but not in Bali), alcoholic drinks become an object of excise. The price of excise increased by 10% in 2015.

As for imported alcohol drinks, there is import tax around 150% of the basic price. This tax regulation has been effectively implemented since 2015. As a consequence, imported drinks in Bali are more expensive than the local alcohol drinks. For instance, a bottle of liquor sold at US$11 in the United States is sold around US$40 in Bali. Domestic beer, on the other hand, is cheaper. In a local bar, you can order a glass of beer with US$5.

Before the regulation change in 2010, alcohol drinks were also subject to a luxury tax. Now, the regulation is no longer applied to alcohol drinks, so there is only excise and import tax added to the price you pay.

Cheap Alcohol in Bali

Even though alcohol in Bali is expensive in general, you can still get your hands on some affordable local booze. You can choose local Bali wine or beer. The former is available in bars and supermarkets. Expect to pay more than US$ 15 per bottle. While the latter is cheaper, you can easily find it in a minimarket with US$5 or less.

In Bali, you can also find a type of strong liquor called arak. The alcohol in this drink is around 40%. Arak in Bali is mostly made from coconut palm flower or rice. Be careful ordering cheap mix drinks in bars and clubs, because there have been numerous cases of methanol poisoning..

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