Once You Get the Necessary Licenses, You Can Operate Your Restaurant in Peace

Guide to Starting a Restaurant Business in Indonesia

There are only several things in the world that can unite humans all over the world. One of them is food. Food can become a problem solver for most predicaments if not all. What more if you are in a foreign land. Whether you are investing in a restaurant or want to operate one yourself, this guide to starting a restaurant business in Indonesia will prove useful.

 

Start With a Company

Any commercial activities in Indonesia must operate under an Indonesia company. The same applies when you plan to open up a café, eatery or a restaurant. Within the Indonesian law, foreigners wanting to open up a restaurant business have two options. One is to register a foreign direct investment company. It is also known as a limited liability company. Another is to have a local company, with 100% Indonesian ownership. This is where you can only become the investor and has no say in the restaurant management.

The former company type is subjected to the Indonesian Negative Investment List. However, the updated Negative Investment List now allows full foreigner ownership in the business, such as restaurants and cafes. Nevertheless, it all has to begin with a registered company. The registration process of a limited liability company is straightforward. Talk to us if you have issues with registering your LLC in Indonesia, and we will sort it out for you.

 

Permits for License

Restaurant businesses in Indonesia fall into the tourism business category. After the registration of an LLC, the business owner now needs to apply for a restaurant license at the local government tourism department. For Jakarta, applications will be at the governor’s office. To apply for the license, you would need to apply for separate permits to ensure your restaurant license gets approved. The following are permits you need to obtain within the Indonesian provision law:

  • Building Permit (Izin Mendirikan Bangunan / IMB) – It allows the modification, expansion or build-up of the restaurant in the purported location.
  • Nuisance Law Permit (Undang-undang Gangguan) – The permit should state that the location will not disrupt public peace and safety
  • Environmental Impact Analysis – The analysis should cover how the restaurant affects the surrounding environment, waste disposal strategy and toxic evaluation of the restaurant’s waste.
  • Food Safety and Health Certification – It is issued by the Ministry of Health to ensure products sold are up to safety standards. It is also a requirement for every person in the restaurant to have health certification. This is to ensure that proper food and beverage management and handling at all times.

 

The Licenses

After obtaining the required permits, it is time to submit the license application to the local government tourism division. These are necessary for submission of a restaurant license:

  • A copy of all of the permits and certifications
  • One copy of Company Article of Association
  • One copy of ID or Passport and a working visa if you are a foreigner
  • A coloured photograph of the restaurant location, from all exterior angles, as well interior of each room.

If your restaurant is serving alcohol, you need to apply for Alcoholic Beverage Trading License (SIUP-MB). Furthermore, your restaurant could be playing pre-recorded music. You need to apply for the license to play the music as this involves copyright issues.

Guide to Starting a Restaurant Business in Indonesia