Starting a Padel Court Business in Jakarta: Essential Legal Steps

The popularity of padel courts is rising fast in Jakarta, fueled by growing interest in health, social sports, and modern lifestyle activities. Yet despite increasing demand, Jakarta has fewer than 60 functional padel courts—far below the level needed to serve its urban population. 

This presents a prime opportunity for entrepreneurs and investors to tap into a high-demand, low-competition niche within Indonesia’s capital city, with the potential for significant returns on investment. 

This guide provides a comprehensive roadmap for opening a profitable padel court business in Jakarta. It covers everything from identifying market gaps and costs to navigating licenses, ensuring you are well-prepared for every process step. 

Challenges of Starting a Padel Court Business in Jakarta 

Starting a padel court in Jakarta has big potential, and while there are some real challenges you should be ready for, they are manageable with the right approach and preparation. 

Low Awareness of Padel 

Padel is still a niche sport in Jakarta. Many locals are unfamiliar with how it differs from tennis or squash, which means you’ll need to: 

• Introduce the sport with demo games or free trials 
• Use social media to build interest 
• Offer beginner classes to attract first-timers 

High Initial Capital and Land Costs 

Jakarta’s real estate costs are among the highest in Southeast Asia, especially in strategic areas like Kemang, SCBD, or Pantai Indah Kapuk. Main costs include: 

• Land or space rental (especially in popular areas) 
• Court construction (glass walls, turf, lighting) 
• Facilities (bathrooms, reception, seating) 
• Equipment imports and setup 

Permits and Legal Steps 

You’ll need several licenses to open legally in Jakarta: 

• Company registration (PT or CV) 
• OSS business license and NIB 
• Building permit (PBG) 
• Zoning approval for sports use

Perm permits may require additional fire safety and environmental impact documents for indoor courts, especially within commercial zones or malls. 

Legal Setup and Licensing for a Padel Court in Jakarta 

To legally operate a padel court business in Jakarta, you must follow local licensing rules and register your business correctly. 

Business Classification (KBLI) 

Padel courts are categorized under KBLI 93114, which includes sports like tennis and badminton. Even though padel isn’t mentioned directly, it fits under this classification. 

This category is considered low-risk, so you generally need only two main licenses: 

• NIB (Business Identification Number): This registers your business with the government. 
• PBG (Building Approval): Confirms your facility meets zoning and building regulations. 

These are the minimum requirements for most small or medium-sized padel courts. 

Additional Permits 

Depending on the location and type of facility, you may also need: 

• Operational Business License (Izin Usaha) 
• Certificate of Building Function (SLF) 
• Environmental documents and neighborhood approval 
• A recommendation from the Jakarta Sports Office (Dispora), especially for public courts 

These may require technical designs, layout plans, and community approval. 

READ MORE:

• Navigating Jakarta Company Registration: DIY or One-Stop Service?
• Comprehensive Guide to Business Opportunities in Jakarta
• Steps to Set Up a Representative Office in Jakarta

Trademark and Brand Protection 

Register a trademark with the Directorate General of Intellectual Property (DGIP) to protect your business name, logo, and identity. Under Indonesian law, only registered trademarks are protected. Once approved, your mark is valid for 10 years and can be renewed. Register a service mark if you offer court rentals or coaching. You may also need a trademark if you sell merchandise like padel gear. 

Tax Obligations on Padel Court Rentals in Jakarta 

If your court is in DKI Jakarta, you must collect a 10% entertainment tax (PBJT) on court rentals. PBJT replaces VAT for padel court rentals in Jakarta. It’s a local tax, collected by the Jakarta provincial government. This tax is based on: 

• Law No. 1 of 2022 on central-local government finance 
• DKI Jakarta Regulation No. 1 of 2024 
• Jakarta Revenue Agency Decision No. 257 of 2025 

Other taxes, such as income tax, still apply and are handled by the national tax office. 

Note: PBJT only applies in Jakarta. Other regions may have different tax rules or none at all.

Open Your Padel Court Business in Jakarta with InCorp 

Opening a padel court in Jakarta is a smart move for entrepreneurs and investors who want to enter a high-growth, low-competition market. InCorp Indonesia (an Ascentium Company) is here to guide you through the process of launching your padel court. 

Our services include: 

• Business incorporation and KBLI classification support 
• End-to-end licensing through OSS, NIB, PBG, and more 
• Legal assistance for zoning, permits, and SLF requirements 
• Trademark registration for your brand, logo, or name 
• Tax advisory for PBJT, VAT, and income tax compliance 
• Ongoing support for legal compliance and business operations 

Don’t let red tape slow down your success. Start your padel business the right way by filling out the form below.

Frequently Asked Questions