What You Need to Know

In Indonesia, the restaurant scene is booming with trendy, Instagram-worthy eateries attracting both newcomers and seasoned entrepreneurs. These contemporary establishments focus not only on delectable cuisine but also on strategic locations and stylish interiors. But, does diving into the restaurant business entail navigating a labyrinth of permits and regulations?

According to Indonesian laws, establishing a restaurant requires obtaining a Business Identification Number (NIB). This serves as proof of registration for conducting business activities, ensuring compliance with regulations.

So, what are the prerequisites for setting up a café or restaurant? Per Permenparekraf 18/2021, restaurants are classified into two risk categories:

1. Medium-Low Risk Tourism Businesses:

Restaurants with 50 to 100 seats.

2. Medium to High-Risk Tourism Businesses:

Restaurants with seating for 101 to 200 patrons.

Regardless of risk level, restaurants must obtain a standard certificate through the Online Single Submission (OSS) system, confirming adherence to business standards. Additionally, a Tourism Business Certificate from the Business Certification Institute is essential to uphold quality standards in products, services, and management.

Ownership of restaurant businesses is open to both locals and foreigners, with foreign-owned ventures requiring management by a Limited Liability Company. Notably, Presidential Decree 44/2016 removed restrictions on foreign ownership, overturning previous regulations.

But what about hiring foreign chefs? Foreigners seeking employment in Indonesia must secure work and residence permits from the Ministry of Manpower and Immigration. These permits necessitate:

- Educational qualifications relevant to the position.

- Minimum five years of experience in the field.

- Transfer of expertise to local assistants.

The application process involves several documents, including sponsor letters, legal documents, passport copies, health insurance, and educational certificates.

Before embarking on your culinary journey, familiarize yourself with the necessary steps and requirements. Opening a restaurant demands more than just delicious food and a cozy ambiance; it requires adherence to legalities and regulations to ensure smooth operations.