Guide For Obtaining Restaurant License in Indonesia

Guide For Obtaining Restaurant License in Indonesia: 2023 Update

  • InCorp Editorial Team
  • 22 May 2023
  • 4 minute reading time

Although it might not be as easy as it looks, millions dream of opening their own restaurant. However, obtaining a restaurant license in Indonesia poses some challenges. Furthermore, opening and turning a new restaurant into a success requires more than hard work and dedication.  

As with any business, obtaining a restaurant license requires a lot of paperwork. Failing to get proper licenses and permits will result in closing from the local government.

The retail sector, including hotels and restaurants, is changing rapidly as personal income and consumer spending increase. According to McKinsey Global Institute, 90 million new Indonesians will likely join the consuming class, making it as big as about 135 million by 2030. 

A sizeable middle-class population will be an essential part of this story. This group will look for a new house and car, filling shopping malls and restaurants. 

Restaurant Industry Is Going Strong

Despite the struggling economy, the food and beverage industry is one of the critical sectors that supports the performance of the non-oil and gas processing industry. 

In the first quarter of 2022, the food and beverage industry contributed more than a third, or 37.77%, of the GDP of the non-oil and gas processing industry.

The Regulation of Food and Beverage Industry

Since the food and drink service business is referred to as a tourism business, the owner may direct the regulations to the Ministerial Regulation of the Ministry of Culture and Tourism No. PM. 87 /HK.501/MKP/2010. 

Based on the regulation, the tourism business provides food and drinks, including restaurants, food stalls, bars, café, catering services, food courts, and other food and beverage service businesses.

However, there are still some questions left to answer for business actors who want to expand their business into the restaurant industry. 

Read More: The Halal Industry in Indonesia: Trends and Future Prospects

Who’s allowed to obtain Restaurant License?

Local and foreign investors are welcome to enter the restaurant business. Opening a restaurant is similar to registering another type of company in Indonesia. Founders must set up a Direct Investment Company. 

This is a limited liability company (LLC) called Perseroan Terbatas (PT) in Indonesia. For foreign investors, there is also a foreign-owned LLC called PT. PMA – Penanaman Modal Asing.

Specific business fields have limitations for share ownership for foreigners. For example, according to Presidential Decree Number 39 Year 2014, foreign investors are allowed to have 51% ownership of restaurants; 49% of bars and café.

How to Obtain a Restaurant License?

To get a restaurant license, the application for registration shall be addressed to the tourism and culture agency at the local government where the tourism business is located. For example, it could be at the Regent or Mayor’s Office, except for the Special Capital Province of Jakarta at the Governor’s Office.

The process of registration of tourism businesses covers the following:

  • Application for the registration of tourism businesses
  • Verification of applications
  • Inclusion in the list of tourism businesses
  • Issuance of certificates of tourism business registration
  • Updating the list of tourism businesses in the event of changes in supporting documents

What Documents Should Be Prepared?

Required documents to obtain a restaurant license are as follows:

  • Filled Application Form
  • Copy of Company Article of Association
  • Copy of ID/Passport
  • Copy of taxpayer registration number (i.e., NPWP) of the company
  • Copy of Building Permit (i.e. Izin Mendirikan Bangunan/IMB)
  • Copy of Disturbance Law/Hinder Ordonnantie (i.e., Undang-Undang Gangguan/HO)
  • Copy of Environmental Impact Analysis (i.e. Analisis Dampak Lingkungan/AMDAL)
  • Colored picture of business location with size-4R showing front, left, and the right look, including each room inside.

Besides the required documents above, the restaurant requires an additional license regarding the service offered. For example, if the restaurant plans to provide alcoholic beverages, it is vital to get Alcoholic Beverage Trading License (SIUP-MB). 

Obtaining a Restaurant License with InCorp Indonesia

Furthermore, restaurants featuring live or pre-recorded music must obtain licenses from a label record or competent foundation that facilitates using such material. Failure to do so could trigger expensive penalties.

Thinking about starting your own restaurant? If you need further detailed information to acquire a restaurant license in Indonesia, feel free to contact InCorp Indonesia (formerly Cekindo).  

We will provide all the required information and assist you in successfully opening a new restaurant in Indonesia.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.