Multi Bintang (MLBI IJ) is Indonesia’s leading beer producer.

The company started in 1929 as “Nederlandsch-Indische Bierbrouwerijen” back when Indonesia was a Dutch colony. Today, Multi Bintang has a market share of almost 60%. Its flagship beer “Bintang Bir” is by far the most popular brand in the sector.

The company is majority-owned by Heineken, which runs it like a local subsidiary. 100% of profits are paid out as dividends. The management team has a background in other subsidiaries of the broader Heineken group. For example, the current CEO previously ran Heineken in Myanmar and Mongolia.

Indonesia is a peculiar beer market. The majority of the population is Muslim and don’t drink alcohol. That limits the potential upside in overall beer consumption. That said, neighbouring country Malaysia consumes almost 6x as much per capita as Indonesia. And in Malaysia, Islam is the state religion whereas Indonesia has a secular constitution. The numbers clearly show that Indonesian beer rema…