Want to Start a Restaurant Business in Indonesia? – Currently, Instagrammable restaurant businesses are becoming a favorite, both beginners and business people are competing to set up contemporary restaurants. It is contemporary because it does not only rely on good taste but strategic location and interior which are also taken into consideration. Does setting up a restaurant require complicated permits?

Please note that according to Indonesian laws and regulations, to set up a restaurant, every business actor is required to have a Business Identification Number (NIB). NIB itself is proof of registration or registration of business actors to carry out business activities.

Requirements to establish a café or restaurant

Based on Permenparekraf 18/2021, the restaurant classification itself consists of 2 risk level categories, namely:

1. Medium low risk based tourism business

Restaurant with 50 to 100 seats

2. Tourism business based on medium to high risk

Restaurant with seating for 101 to 200 units

Regarding the risk basis, restaurants that are classified as medium-low or high-risk tourism businesses are still required to have a standard certificate (legality in the form of a statement by the business actor to meet business standards through OSS). This standard certificate is issued by the Central Government or Regional Government according to their respective authorities based on the results of verification of compliance with business activity standards.

Apart from that, tourism business actors are also required to have a Tourism Business Certificate issued by the Business Certification Institute, this is important because every tourism business actor is obliged to maintain and improve the quality of tourism products, services and tourism business management.

Ownership of this restaurant business can be owned by both local and foreigners, but for foreign ownership it must be managed by a Limited Liability Company. In Presidential Decree 44/2016, there are no restrictions on foreign ownership in the restaurant business sector.

This is different from the previous presidential regulation, namely Presidential Regulation Number 39 of 2014 concerning the List of Closed Business Fields and Open Business Fields with Requirements in the Investment Sector (“Perpres 39/2014”) which limits foreign ownership in the restaurant sector. With the enactment of Presidential Decree 44/2016, Presidential Decree 39/2014 is declared revoked and invalid.

Can restaurants hire foreign chefs?

Every foreigner who works in Indonesia is required to have a work permit and residence permit obtained through an application to the Ministry of Manpower and Immigration where the foreigner is domiciled. Then, every TKA employed by a TKA employer must have:

1. Education in accordance with the qualifications for the position to be held;
2. Competency or work experience of at least 5 (five) years in accordance with the qualifications for the position to be held; And
3. Transfer their expertise to TKA Assistance Workers.

The conditions for obtaining a work permit and residence permit for foreign workers are:

1. Application Letter from Sponsor
2. Statement and Guarantee from the Sponsor
3. Sponsor’s KTP
4. Company Legality
5. Submission Form
6. TKA passport
7. TKA Current Account
8. Health Insurance
9. Certificate Degree
10. Domicile Certificate

Before starting to get involved in running a business in the food & beverage business, it’s a good idea to know in advance what you must prepare beforehand as a condition for running a business in that field. Because opening a restaurant not only requires good food and beverage or a clean and comfortable place, but also requires licensing as a form of business legality in running the business.

Find out firsthand what are the licensing requirements that must be owned for companies in the tourism sector, restaurant sector in Bali – Indonesia.

For more details, you can contact us Indoservice regarding the legality or licensing of companies in Indonesia.

Indoservice, a secretarial and licensing services consulting company firm that can assist you in establishment a company in Indonesia and business-related licensing. Trusted and experienced in Indonesia, committed to providing the best and fast service to meet your needs. Contact us now for special offers at +62877-1449-8500 or admin@indoservice.co.id.