Home Blog F&B Services’ Compliance in Indonesia: Tending to Clipped Wings Business Licenses | Business Setup | Indonesia | Legal Consultation | Secretarial Services F&B Services’ Compliance in Indonesia: Tending to Clipped Wings InCorp Editorial Team 25 June 2025 4 minutes reading time Table of Contents The Importance of Legal Compliance in F&B Services The Aftermath In June 2022, the provincial government of DKI Jakarta executed a joint field inspection by its relevant institution on Holywings Group (HW). HW is famous among F&B services chains specializing in bar businesses. The Importance of Legal Compliance in F&B Services Holywings Group held 12 outlets throughout Jakarta. It was then inspected by two offices: the Office of Tourism and Creative Economy (Disparekraf) and the Office of Industry, Trade, Cooperation, and Small Business Enterprise (DPPKUKM). In the same month, both offices issued joint findings. They found that some of the inspected outlets of their F&B services do not have a verified business license necessary to operate bar business (KBLI 56301) in the Online Single Submission Risk-Based Approach (OSS RBA). Furthermore, the outlets did not have proper business licenses to conduct direct alcoholic sales of F&B services. In addition, 7 of the 12 outlets also only possessed business licenses to sell alcoholic drinks for takeaway purposes (KBLI 47221). While the public would expect an administrative warning and fines to be applied to the group, the governor of DKI Jakarta apparently said his final word. Under Regional Regulation Number 8 the Year 2007 concerning Public Order and DKI Jakarta Governor Regulation Number 18 the year 2018 concerning Implementation Tourism, Anies Baswedan ordered the Municipal Police of DKI Jakarta to close all 12 branches of Holywings effective immediately. The Aftermath Their ambitions bring down another dark cloud after recently opening due to relaxed government COVID-19 policy regarding public gatherings. The action by the governor abruptly terminated their F&B services activities. It is worsened with thousands of employees left uncertain of their livelihood due to the termination. Other regional governments emulated the action of DKI Jakarta’s governor regarding any F&B services of HW Group. Provincial and regional governments in Surabaya, Bogor, Semarang, and Tangerang conducted inspections of their Holywings’ outlets. They discovered legal violations, prompting another wave of outlet closures numbering fewer than 11 branches. News media raised their concern about this predicament to stir uncertainty in Holywings’ future business prospects in Bali as their largest ongoing branch is under construction. Indonesian news media offered a complementary perspective from the recent Holywings Group’s marketing promotion. Their out-of-the-box communication strategy resulted in public complaints and inspections by the provincial government of DKI Jakarta. Readers should be able to objectively view that gaps in legal compliance contributed to a loss of company operations and may very well potentially cease it altogether. How Holywings Group will resolve its F&B services predicament will depend on the legal-business dynamics of the management. The lesson from the current event is that business owners should obtain suitable business licenses and set structured company policies accordingly. Expedite Your Legal Matters with InCorp It is imperative to complete all the necessities prior to opening their business or expedite the license procurement process while business is ongoing. Constant communication with local government and critical stakeholders is vital in preserving business sustainability. To avoid such cases, InCorp Indonesia (an Ascentium Company) provides business license consulting services to new and existing business owners to explore or maintain their presence in the Indonesian market (Jakarta, Semarang, Surabaya, Bali, Batam). Please contact us now to better understand your business in Indonesia. Disclaimer: InCorp assumes no responsibility or liability for any errors or omissions in the content of this article. The information contained in this site is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness, or timeliness. The information contained herein is not intended to be a source of legal advice or analysis with respect to the material presented and the information and/or documents contained in this article. Please see a qualified consultant for this matter. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions Is it required to hire Indonesian staff in the PMA company? In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations. What are the shareholder rights in a PMA company? Shareholders of a PMA Company in Indonesia have various rights, including voting rights in general meetings, entitlement to dividends and liquidation proceeds, and access to information. They must approve significant matters through general meetings of shareholders with specified quorums, such as: Amending articles of association Changing share capital Appointing or dismissing directors and commissioners Approving major transactions, dividends, and financial statements Company reorganization How is the process of liquidating a PMA company in Indonesia, and how long does it take? The procedures for (voluntarily) liquidation typically involve the following steps: Conduct a general shareholder meeting to approve the liquidation and the liquidator’s nomination Notify the Ministry of Law and Human Rights as well as the creditors of the liquidation and the distribution plan for the assets by newspaper notice All business licenses and tax numbers should be canceled or revoked; the tax office will conduct a tax audit to revoke the tax number Make sure creditors are paid and that any liquidation funds are distributed to shareholders (if any) Conduct a general meeting of shareholders to approve the liquidator’s discharge and acquittal Notify the Ministry of Law and Human Rights of the liquidation’s outcome. After receiving the notification, the Ministry of Law and Human Rights will deregister the company’s status as a legal entity and remove its name from the Company Registry Release the liquidation’s outcome in a newspaper Completing the liquidation process can take around two years. Can a foreigner form a CV? A foreigner is not allowed to form a CV in Indonesia Get in touch with us. 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