If you plan to open a restaurant in Indonesia, you will need to obtain licenses and permits. Without them, you may face legal issues, which can hinder your business.
You need a Business Identification number, Business license, location permit, building construction permit, F&B license, environmental permit, Halal certification, health and hygiene permit, alcohol license, fire safety permit, employee work permit, and tax registration.
Having these licenses isn’t enough, you need one more secret ingredient to ace the recipe of your restaurant business. Read more to find out what this secret ingredient is.
1. Business Identification Number (NIB)
The first thing you need is a Business Identification Number (Nomor Induk Berusaha or NIB). This is obtained through the Online Single Submission (OSS) system and serves as your official business registration. The NIB is essential because it allows you to apply for other necessary permits, open a business bank account, and operate legally.
2. Business License (Izin Usaha)
After getting the NIB, you need a Business License (Izin Usaha), which is also issued through the OSS system. This permit ensures that your business is legally recognized. The cost varies depending on the location and size of your restaurant, but it generally ranges from IDR 500,000 to IDR 5,000,000.
3. Location Permit (Izin Lokasi)
You must have a Location Permit (Izin Lokasi) to confirm that your restaurant operates in an approved area. Certain zones in Indonesia are restricted for businesses, so you need this permit to avoid legal trouble. Check with your local government to confirm the zoning regulations.
4. Building Construction Permit (IMB/PBG)
If you are constructing or renovating a building for your restaurant, you need a Building Construction Permit (Izin Mendirikan Bangunan or IMB). This has now been replaced with Persetujuan Bangunan Gedung (PBG) under new regulations. The cost depends on the size and location of your building, typically starting from IDR 10,000,000.
5. Food and Beverage Business License (TDUP)
A Tourism Business Registration Certificate (Tanda Daftar Usaha Pariwisata or TDUP) is required for food and beverage businesses, including restaurants. This license ensures that your business follows health and safety standards. You can apply for this through the OSS system.
6. Environmental Permit (AMDAL or UKL-UPL)
Restaurants produce waste and emissions, which is why you need an Environmental Permit. If your business has a significant environmental impact, you must apply for an Environmental Impact Analysis (AMDAL). For smaller restaurants, an Environmental Management and Monitoring Plan (UKL-UPL) is enough. The cost varies, but obtaining an AMDAL can cost up to IDR 50,000,000.
7. Halal Certification (If Needed)
If you want to serve halal food, you need a Halal Certification from the Indonesian Ulema Council (Majelis Ulama Indonesia or MUI). Since 2019, halal certification has been mandatory for food businesses. The process includes ingredient verification and kitchen inspections. The cost ranges from IDR 3,000,000 to IDR 10,000,000.
8. Health and Hygiene Certificate (Sertifikat Laik Hygiene Sanitasi)
Your restaurant must meet health and hygiene standards, and for that, you need a Health and Hygiene Certificate. Local health authorities inspect your kitchen, food storage, and hygiene practices before issuing this certificate.
9. Alcohol License (If Serving Alcohol)
If you plan to sell alcohol, you need an Alcohol Sales License (Surat Izin Usaha Perdagangan Minuman Beralkohol or SIUP-MB). Indonesia has strict regulations on alcohol sales, and not all areas allow it. The licensing cost varies, but it can be between IDR 10,000,000 and IDR 50,000,000.
10. Fire Safety Permit (Izin Kebakaran)
Since restaurants use gas and fire, you need a Fire Safety Permit from the local fire department. They will inspect your kitchen for fire hazards and ensure you have the necessary safety equipment, like fire extinguishers and emergency exits.
11. Employee Work Permits (If Hiring Foreign Workers)
If you are hiring foreign staff, you need an Expatriate Work Permit (Izin Mempekerjakan Tenaga Kerja Asing or IMTA) and a Stay Permit (KITAS). These permits ensure that your foreign employees can legally work in Indonesia.
12. Tax Registration (NPWP and PKP)
You need a Taxpayer Identification Number (Nomor Pokok Wajib Pajak or NPWP) for your business. Suppose your restaurant earns more than IDR 4.8 billion per year. In that case, you must also register as a Taxable Entrepreneur (Pengusaha Kena Pajak or PKP) and charge Value-Added Tax (VAT) on your sales.
As much as you need to have the necessary licenses in place. You need to have a POS system for your restaurant that can help you manage all the different processes. There are a lot of POS systems in the Indonesian Market but there is only one brand that is specifically designed for restaurants. EasyEat makes tailor-made POS systems for your restaurant. You can get solutions specific to your restaurant problems.
FAQs
- What licenses and permits are needed to open a restaurant in Indonesia?
To open a restaurant in Indonesia, you need a Business Identification Number (NIB), Business License (Izin Usaha), Location Permit (Izin Lokasi), Building Permit (PBG), Food and Beverage Business License (TDUP), Environmental Permit (UKL-UPL or AMDAL), Halal Certification (if applicable), Health and Hygiene Certificate, Alcohol License (if selling alcohol), Fire Safety Permit, Employee Work Permits (if hiring foreigners), and Tax Registration (NPWP and PKP). - How much does it cost to get restaurant licenses in Indonesia?
The cost varies depending on the type of permit, location, and restaurant size. Business registration can cost between IDR 500,000 and IDR 5,000,000, while an Environmental Permit (AMDAL) can cost up to IDR 50,000,000. Halal certification costs between IDR 3,000,000 and IDR 10,000,000. If you plan to sell alcohol, the Alcohol Sales License can cost between IDR 10,000,000 and IDR 50,000,000. - How long does it take to get restaurant licenses in Indonesia?
It depends on the type of permit and the efficiency of local authorities. Some licenses, like the NIB and Business License, can be obtained within a few days through the OSS system. Others, like the Environmental Permit (AMDAL) or Halal Certification, can take several months due to inspections and approval processes. - Do I need a POS system for my restaurant in Indonesia?
Yes, having a POS system for your restaurant in Indonesia is important for managing sales, inventory, and finances. POS software in Indonesia can also help with tax compliance, employee management, and accepting digital payments, making it an essential tool for running your business efficiently.
