Beer in Indonesia started in 1929, when the Heineken beer company established its first brewery factory in Surabaya, East Java, during Dutch colonial rule of Indonesia. This was one of the earliest beer enterprise in Southeast Asia. In July 1931 the Archipel Brouweriji Compagnie (Archipelago Brewery Co.) was formed in Batavia (now known as Jakarta), by German brewer, Beck's, constructing breweries in both Singapore and Batavia. By 1960s, Indonesians developed their own local brands of beer, which includes Bintang Beer (nationalized from Heineken) and Anker Beer.
As a Muslim majority country, alcohol industry faces ongoing opposition from Islamic parties and pressure groups in the country. Islamic dietary law prescribed prohibition against alcohol consumption. Because of various regulations, alcohol sales are declining in Indonesia. These regulations includes an excise tax hike of 18%, restrictions on where beer can be sold, as well as proposals to ban beer. As the result, the Indonesian beer market declined in 2014 and 2015.
Currently, PT Multi Bintang Indonesia Tbk is the largest domestic brewery of Indonesia, with its Bintang Beer leading the market as the largest selling beer of Indonesia. Multi Bintang Indonesia lead the Indonesian beer market with a commanding total volume share of over 61% in 2012.
Multi Bintang is a subsidiary of Heineken Asia Pacific. In 2011, Bintang Beer won the Gold Medal for Lager Beer Category and awarded 'Champion Beer 2011' at the world's class beer competition, the Brewing Industry International Award (BIIA 2011) in London. In 2014 Bintang Radler was introduced which was the first flavoured beer produced domestically in Indonesia.
Other major beer producers are Delta Djakarta known for its Anker Beer, and PT Bali Hai Brewery Indonesia known for its Bali Hai, an affiliate to an Asian brewery, which also produced under license other brands including San Miguel Beer, Asahi beer and Lowenbrau beer (non-alcoholic).