Foreign Business Setup Guide
How to Start a Restaurant in Bandung as a British Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for British entrepreneurs opening a restaurant in Bandung, Indonesia.
Licenses Required
4
Est. Cost Range
$219 - $987
Timeline
25-102 days
Quick Answer
Yes, British foreigners can start a restaurant in Bandung, 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 25-102 business days. The estimated government and service fees range from Rp 3.400.000 to Rp 15.300.000.
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).
Bandung — Local Compliance Guidance
Specific regulations, costs, and timelines that apply to businesses setting up in Bandung.
Cost Adjustment
15% lower
Costs in Bandung are approximately 15% lower than the national average due to local market conditions and regulatory requirements.
Timeline Adjustment
+3 business days
Processing times in Bandung typically take 3 additional business days compared to the national average.
About Bandung
Bandung is emerging as a tech and creative hub. Lower operational costs make it attractive for startups. The local government actively promotes digital economy businesses. Bandung's creative economy ecosystem includes co-working spaces, tech incubators, and a growing talent pool from its universities (ITB, Unpad).
Additional Local Requirements
These permits and requirements apply specifically in Bandung, in addition to national requirements.
- West Java Provincial Business Registration
Restrictions & Warnings
Bandung has limited industrial zoning - manufacturing may require relocation to outskirts
Traffic congestion may impact logistics-dependent businesses
Local Investment Authority
Authority Name
DPMPTSP Kota Bandung
Contact
dpmptsp@bandung.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 Bandung 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 British entrepreneur setting up a restaurant in Bandung (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 — Bandung
Approximate government and service fees adjusted for Bandung (15% below national average). Excludes ongoing operational costs.
| Item | Low Estimate (IDR) | High Estimate (IDR) | USD Approx. |
|---|---|---|---|
| Company Establishment (Notary + Legal) | Rp 12.750.000 | Rp 29.750.000 | $823 - $1,919 |
| Kemenkumham Registration | Rp 850.000 | Rp 1.700.000 | $55 - $110 |
| 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 850.000 | Rp 4.250.000 | $55 - $274 |
| Izin Usaha Restoran (Restaurant Business License)(Municipal license, costs vary by city. Jakarta and Bali on higher end.) | Rp 1.700.000 | Rp 6.800.000 | $110 - $439 |
| Sertifikat Laik Hygiene (Hygiene Eligibility Certificate)(Required for all F&B businesses. Annual inspection.) | Rp 850.000 | Rp 4.250.000 | $55 - $274 |
| Work Permit (RPTKA + IMTA) | Rp 12.750.000 | Rp 21.250.000 | $823 - $1,371 |
| KITAS Visa | Rp 4.250.000 | Rp 10.200.000 | $274 - $658 |
| Virtual / Physical Office Address(Per year) | Rp 4.250.000 | Rp 25.500.000 | $274 - $1,645 |
| Total Estimated Range | Rp 38.250.000 | Rp 103.700.000 | $2,468 - $6,690 |
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 Britishnational, 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
British 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 British Entrepreneurs
Country-specific information for British nationals setting up a business in Indonesia.
Recommended Visa Pathway
Investor KITAS. UK has no special bilateral agreement simplifying visa processing. Standard RPTKA pathway.
Estimated processing time: 35 business days
Tax Treaty Information
UK-Indonesia DTA in effect. UK taxes worldwide income. No National Insurance totalization. Pension contributions cannot be transferred.
Common Issues for British Nationals
Post-Brexit: no EU trade advantages in Indonesia
Sterling conversion rates affect capital requirements
UK professional qualifications may need separate Indonesian recognition
Document Requirements for British Citizens
- Documents must be apostilled (UK is Hague Convention member)
- DBS check required for KITAS
- UK solicitor-notarized documents accepted
Embassy & Consulate
British Embassy Jakarta: Jl. Patra Kuningan Raya Blok L5-6. British Honorary Consul Bali available for emergencies.
Business Culture Tips
British formality is appreciated in Indonesian business settings. Tea is often served at meetings - accepting is polite. Patience with bureaucracy is essential.
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
Bandung may have specific local permits (izin usaha) beyond national requirements. Check with the local DPMPTSP (investment office) for Bandung-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 British citizen own 100% of a restaurant in Bandung?
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Yes, British nationals can own 100% of a restaurant in Bandung 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 Bandung?
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You will need 4 licenses to operate a restaurant in Bandung. 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 Bandung?
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Based on the 4 required licenses, government and service fees for a restaurant in Bandung range from Rp 3.400.000 to Rp 15.300.000 (approximately $219 to $987). 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 Bandung?
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The typical timeline is 25-102 business days from start to fully operational in Bandung. 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 Bandung without any Indonesian shareholders.
What visa do I need as a British to run a business in Indonesia?
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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 Bandung remotely?
▾
Your PT PMA must have a registered physical or virtual office address in Bandung. 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.