Foreign Business Setup Guide
How to Start a Restaurant in Bali as a Korean Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for Korean entrepreneurs opening a restaurant in Bali, Indonesia.
Licenses Required
4
Est. Cost Range
$310 - $1,394
Timeline
29-106 days
Quick Answer
Yes, Korean foreigners can start a restaurant in Bali, Indonesia. This business activity is open to foreign investment with up to 100% foreign ownership through a PT PMA (foreign-owned limited liability company).
You will need approximately 4 licenses and can expect the process to take 29-106 business days. The estimated government and service fees range from Rp 4.800.000 to Rp 21.600.000.
Foreign Ownership Rules
Foreign Ownership
Up to 100%
DNIB Status
open
Recommended Structure
PT PMA (Foreign Investment Company) (PT PMA)
As a foreign investor opening a restaurant in Indonesia, you will typically establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — a foreign-owned limited liability company. This is the standard legal entity for foreigners conducting business activities in Indonesia.
Minimum investment capital: Rp 10.000.000.000 ($645,161).
Bali — Local Compliance Guidance
Specific regulations, costs, and timelines that apply to businesses setting up in Bali.
Cost Adjustment
20% higher
Costs in Bali are approximately 20% higher than the national average due to local market conditions and regulatory requirements.
Timeline Adjustment
+7 business days
Processing times in Bali typically take 7 additional business days compared to the national average.
About Bali
Restaurants in Bali tourist zones (Kuta, Seminyak, Ubud, Canggu) are subject to additional oversight. Alcohol licenses (SIUP-MB) are classified by alcohol content (Class A/B/C) and require separate processing through the OSS system and NPPBKC excise registration. Establishments serving alcohol must comply with national regulations under MOI Regulation 17/2019.
Additional Local Requirements
These permits and requirements apply specifically in Bali, in addition to national requirements.
- Bali Provincial Tourism Permit
- Environmental Impact Assessment for coastal areas
- Halal certification recommended for local clientele
- Liquor license from Bali Governor office
- Food safety certification (Sertifikat Laik Hygiene Sanitasi)
Restrictions & Warnings
Special zoning regulations in tourist areas (Kuta, Seminyak, Ubud)
Alcohol licensing requires additional Bali Governor approval
Beach-front businesses require coastal permit from Marine Ministry
Tourist zone restaurants face stricter noise and waste regulations
Outdoor seating in Kuta/Seminyak requires additional permits
Alcohol service hours may be restricted during Nyepi and religious holidays
Local Investment Authority
Authority Name
DPMPTSP Provinsi Bali
Contact
dpmptsp@baliprov.go.id
The local DPMPTSP (Investment and One Stop Integrated Service) office handles regional permits alongside the national OSS system.
Required KBLI Codes
KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) codes identify your business activities in Indonesia's licensing system.
| Code | Risk Level | Foreign Ownership | DNIB Status |
|---|---|---|---|
| 56101 | medium_high | 100% | open |
Required Licenses & Permits
Licenses required to operate a restaurant in Bali as a foreign-owned business.
Nomor Induk Berusaha(NIB)
business_id
▾
Nomor Induk Berusaha(NIB)
business_id
Estimated Cost
Free
Free through OSS system
Processing Time
1 business days
Validity
Varies
Izin Lokasi (Location Permit)
location
▾
Izin Lokasi (Location Permit)
location
Estimated Cost
Rp 1.000.000 - Rp 5.000.000
Varies by municipality, free for small plots under 25m2
Processing Time
14 business days
Validity
36 months (renewable)
Izin Usaha Restoran (Restaurant Business License)
sector_specific
▾
Izin Usaha Restoran (Restaurant Business License)
sector_specific
Estimated Cost
Rp 2.000.000 - Rp 8.000.000
Municipal license, costs vary by city. Jakarta and Bali on higher end.
Processing Time
14 business days
Validity
60 months (renewable)
Sertifikat Laik Hygiene (Hygiene Eligibility Certificate)
sector_specific
▾
Sertifikat Laik Hygiene (Hygiene Eligibility Certificate)
sector_specific
Estimated Cost
Rp 1.000.000 - Rp 5.000.000
Required for all F&B businesses. Annual inspection.
Processing Time
14 business days
Validity
36 months (renewable)
Get Your Free Compliance Checklist
Tailored to your specific business type, location, and nationality.
Step-by-Step Setup Process
The typical process for a Korean entrepreneur setting up a restaurant in Bali (12 steps).
Prepare Documentation
~7 daysGather your passport, proof of address, apostilled documents, and prepare a detailed business plan for your restaurant concept including menu, target market, and financial projections.
Reserve Company Name via AHU Online
~3 daysSubmit 3 company name choices to the Ministry of Law and Human Rights (Kemenkumham) through the AHU Online system. Names must be in Bahasa Indonesia and at least 3 words.
Draft Deed of Establishment with Notary
~7 daysWork with an Indonesian notary to prepare your company articles of association, including share structure, KBLI codes for F&B activities, and initial capital composition.
Register with Kemenkumham
~14 daysSubmit the notarial deed for legal entity approval. Once approved, your PT PMA exists as a legal entity with a registration number (SK Kemenkumham).
Obtain NIB through OSS
~1 dayRegister on the OSS (Online Single Submission) system to get your NIB (Nomor Induk Berusaha). Select KBLI code 56101 for restaurant activities. Restaurants are typically medium-risk.
Apply for Izin Lokasi (Location Permit)
~14 daysObtain approval for your restaurant premises location from the local government. This confirms the zoning allows commercial F&B operations at your chosen address.
Pro tip: Verify zoning allows F&B in your area before signing a lease. Some residential zones in Bali have restrictions on commercial restaurants.
Apply for Restaurant License (Izin Usaha Restoran)
~14 daysApply for the specific restaurant operating license through the local Dinas Pariwisata (Tourism Office). This is the primary sector-specific permit for restaurant operations.
Obtain Hygiene Certificate (Sertifikat Laik Hygiene)
~14 daysPass a health and hygiene inspection by the local Dinas Kesehatan (Health Office). Your kitchen, food storage, and preparation areas must meet BPOM standards.
Pro tip: Kitchen must meet BPOM standards - hire a consultant for inspection prep. Water quality testing and pest control documentation are commonly missed items.
Apply for Liquor License (SIUP-MB)
Optional~30 daysIf your restaurant will serve alcoholic beverages, apply for the Liquor Business License (SIUP-MB) through the local trade office. License categories: A (beer), B (wine), C (spirits).
Pro tip: Required for serving alcohol. Only granted in certain zones. Bali is more permissive than Java. Hotels and tourist areas have higher approval rates.
Open Corporate Bank Account
~14 daysOpen a corporate bank account in the company name at a major Indonesian bank (BCA, Mandiri, BNI). Deposit the required paid-up capital as stated in your deed of establishment.
Register for Tax (NPWP & PKP)
~7 daysObtain your company Tax ID (NPWP) from the local tax office. Register as a Taxable Entrepreneur (PKP) if your projected annual revenue exceeds IDR 4.8 billion.
Apply for Work Permits (RPTKA/IMTA) & KITAS
~45 daysApply for the Foreign Worker Utilization Plan (RPTKA) and work permit (IMTA) through the Ministry of Manpower. Then obtain your stay permit (KITAS) through immigration.
Estimated Total Timeline
140 days(5 months)
Based on mandatory steps processed sequentially. Actual timeline may vary depending on government processing speeds and document readiness. Some steps can run in parallel.
Estimated Costs Breakdown — Bali
Approximate government and service fees adjusted for Bali (20% above national average). Excludes ongoing operational costs.
| Item | Low Estimate (IDR) | High Estimate (IDR) | USD Approx. |
|---|---|---|---|
| Company Establishment (Notary + Legal) | Rp 18.000.000 | Rp 42.000.000 | $1,161 - $2,710 |
| Kemenkumham Registration | Rp 1.200.000 | Rp 2.400.000 | $77 - $155 |
| NIB / OSS Registration(Free (government)) | Free | Free | Free |
| Nomor Induk Berusaha (NIB)(Free through OSS system) | Free | Free | Free |
| Izin Lokasi (Location Permit)(Varies by municipality, free for small plots under 25m2) | Rp 1.200.000 | Rp 6.000.000 | $77 - $387 |
| Izin Usaha Restoran (Restaurant Business License)(Municipal license, costs vary by city. Jakarta and Bali on higher end.) | Rp 2.400.000 | Rp 9.600.000 | $155 - $619 |
| Sertifikat Laik Hygiene (Hygiene Eligibility Certificate)(Required for all F&B businesses. Annual inspection.) | Rp 1.200.000 | Rp 6.000.000 | $77 - $387 |
| Work Permit (RPTKA + IMTA) | Rp 18.000.000 | Rp 30.000.000 | $1,161 - $1,935 |
| KITAS Visa | Rp 6.000.000 | Rp 14.400.000 | $387 - $929 |
| Virtual / Physical Office Address(Per year) | Rp 6.000.000 | Rp 36.000.000 | $387 - $2,323 |
| Total Estimated Range | Rp 54.000.000 | Rp 146.400.000 | $3,484 - $9,445 |
Note: Minimum investment capital for a PT PMA is Rp 10.000.000.000 ($645,161). This is separate from the setup costs above.
Visa & Work Permit Requirements
As a Koreannational, you'll need the right visa to live and work in Indonesia while running your restaurant.
Recommended: Investor
KITAS Investor
- Duration: 24 months
- Estimated cost: $1,500
- Company sponsorship required
Alternative: Work Permit
KITAS Investor
- Duration: 24 months
- Min. salary: $1,200/month minimum
- RPTKA approval needed first
Korean citizens can enter Indonesia visa-free for up to 30 days or on a Visa on Arrival (VoA) for tourism. However, to work and operate a business, you must obtain the appropriate stay permit (KITAS/KITAP).
Guidance for Korean Entrepreneurs
Country-specific information for Korean nationals setting up a business in Indonesia.
Recommended Visa Pathway
Investor KITAS. Korean nationals benefit from ASEAN-Korea FTA. K-culture businesses (F&B, entertainment, beauty) have strong market demand.
Estimated processing time: 30 business days
Tax Treaty Information
Korea-Indonesia DTA active. South Korea taxes worldwide income. Korean pension contributions not transferable.
Trade Agreements & Bilateral Benefits
ASEAN-Korea FTA (AKFTA) provides tariff reductions and trade facilitation. Korea-Indonesia bilateral cooperation framework active.
Common Issues for Korean Nationals
K-culture wave creates business opportunities in F&B, beauty, entertainment
Large existing Korean community in Jakarta (Kebayoran area)
Korean-Indonesian bilingual staff readily available
Competition high in Korean restaurant segment
Document Requirements for Korean Citizens
- Apostille from Korean Ministry of Foreign Affairs
- Criminal record from Korean National Police Agency
- Korean degree verification through Ministry of Education
Embassy & Consulate
Korean Embassy Jakarta: Jl. Jenderal Gatot Subroto Kav.57. KOTRA Jakarta office for trade assistance.
Business Culture Tips
Korean culture is very popular in Indonesia due to K-pop and K-drama. This creates natural brand affinity for Korean businesses. Hierarchy and respect for elders align between cultures.
Common Pitfalls & Tips
Operating on a Tourist Visa
Many foreigners try to start a business while on a tourist visa or VoA. This is illegal and can result in deportation and blacklisting. Always obtain proper business documentation first.
Using Nominee Structures Illegally
While nominee arrangements are common, undisclosed nominee structures violate Indonesian law. If foreign ownership is restricted, work with a qualified lawyer to find compliant alternatives.
Underestimating Capital Requirements
PT PMA companies have minimum investment and paid-up capital requirements. Ensure you meet these thresholds before starting the registration process for your restaurant.
Ignoring Local Permits
Bali may have specific local permits (izin usaha) beyond national requirements. Check with the local DPMPTSP (investment office) for Bali-specific requirements.
Missing Tax Obligations
Indonesia has strict tax reporting requirements including monthly VAT returns, employee tax withholding (PPh 21), and annual corporate income tax. Non-compliance leads to significant penalties.
Frequently Asked Questions
Can a Korean citizen own 100% of a restaurant in Bali?
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Yes, Korean nationals can own 100% of a restaurant in Bali through a PT PMA (foreign-owned limited liability company). All 1 KBLI code required for this business type allow full foreign ownership.
What licenses do I need to start a restaurant in Bali?
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You will need 4 licenses to operate a restaurant in Bali. These include: NIB, Izin Lokasi (Location Permit), Izin Usaha Restoran (Restaurant Business License), Sertifikat Laik Hygiene (Hygiene Eligibility Certificate). All licenses are obtained through Indonesia's OSS (Online Single Submission) system and sector-specific authorities.
How much does it cost to set up a restaurant in Bali?
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Based on the 4 required licenses, government and service fees for a restaurant in Bali range from Rp 4.800.000 to Rp 21.600.000 (approximately $310 to $1,394). This excludes the minimum investment capital of Rp 10 billion required for PT PMA companies, office rental, and ongoing operational costs.
How long does it take to set up a restaurant in Bali?
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The typical timeline is 29-106 business days from start to fully operational in Bali. This includes company registration, obtaining all 4 required licenses, and visa processing. Working with an experienced agent can help run some steps in parallel and reduce the total time.
Do I need a local partner to start a restaurant in Indonesia?
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No, you do not need a local partner. All 1 KBLI code for a restaurant allow 100% foreign ownership, so you can establish a fully foreign-owned PT PMA in Bali without any Indonesian shareholders.
What visa do I need as a Korean to run a business in Indonesia?
▾
You will need either an Investor KITAS (stay permit) or a Work KITAS, sponsored by your Indonesian company. Tourist visas and Visa on Arrival do not permit business activities. The Investor KITAS is typically recommended for business owners, while the Work KITAS is for employees of the company.
Can I operate my restaurant from Bali remotely?
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Your PT PMA must have a registered physical or virtual office address in Bali. You can manage operations remotely as long as you maintain compliance with tax and reporting obligations, including monthly VAT returns and quarterly LKPM (investment activity reports). Directors must attend certain regulatory meetings in person.
What are the ongoing compliance requirements?
▾
You must file monthly tax returns (VAT, employee tax), submit an annual corporate tax return, renew applicable licenses (you have 4 to track), maintain LKPM (investment activity reports) quarterly, and keep company records with your notary. Non-compliance can result in license revocation and penalties.
Data verified against official Indonesian government sources
Every data point is marked with its verification status. We source from OSS.go.id, BKPM, Imigrasi.go.id, and Peraturan.go.id. This is informational guidance — always confirm with a licensed Indonesian lawyer for your specific situation.
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Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or professional advice. Regulations in Indonesia change frequently. Always consult with a qualified Indonesian lawyer and licensed tax consultant before making business decisions. Information on this page was last reviewed in March 2025 and may not reflect the most current regulations. IndonesiaCompliance is not a law firm and does not provide legal services.