Guide For Obtaining Restaurant License in Indonesia: 2023 Update

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.

Consumer Trends in Indonesia

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.