Foreign Business Setup Guide
How to Start a Restaurant in Yogyakarta as a Chinese Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for Chinese entrepreneurs opening a restaurant in Yogyakarta, Indonesia.
Licenses Required
4
Est. Cost Range
$206 - $929
Timeline
27-104 days
Quick Answer
Yes, Chinese foreigners can start a restaurant in Yogyakarta, 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 27-104 business days. The estimated government and service fees range from Rp 3.200.000 to Rp 14.400.000.
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).
Yogyakarta — Local Compliance Guidance
Specific regulations, costs, and timelines that apply to businesses setting up in Yogyakarta.
Cost Adjustment
20% lower
Costs in Yogyakarta are approximately 20% lower than the national average due to local market conditions and regulatory requirements.
Timeline Adjustment
+5 business days
Processing times in Yogyakarta typically take 5 additional business days compared to the national average.
About Yogyakarta
Yogyakarta as a Special Region (DIY) has unique regulations governed by the Sultanate. Land ownership is restricted under Sultanate rules - the 1975 vice-governor instruction prohibits land ownership by non-native Indonesians, and Sultan Ground (Tanah SG) can only be leased. Lower costs but limited commercial infrastructure outside the city center. Cultural heritage requirements can add time for businesses in the Malioboro/Keraton area.
Additional Local Requirements
These permits and requirements apply specifically in Yogyakarta, in addition to national requirements.
- Special Region cultural impact assessment for businesses in heritage zones
Restrictions & Warnings
Yogyakarta Special Region has unique land ownership rules - foreigners cannot own land directly
Businesses near Keraton (Sultan Palace) require cultural preservation approval
Sultanate ground lease (Sultan Ground) applies to most land - review carefully with a local lawyer
Local Investment Authority
Authority Name
DPMPTSP DIY
Contact
dpmptsp@jogjaprov.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 Yogyakarta 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 Chinese entrepreneur setting up a restaurant in Yogyakarta (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 — Yogyakarta
Approximate government and service fees adjusted for Yogyakarta (20% below national average). Excludes ongoing operational costs.
| Item | Low Estimate (IDR) | High Estimate (IDR) | USD Approx. |
|---|---|---|---|
| Company Establishment (Notary + Legal) | Rp 12.000.000 | Rp 28.000.000 | $774 - $1,806 |
| Kemenkumham Registration | Rp 800.000 | Rp 1.600.000 | $52 - $103 |
| 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 800.000 | Rp 4.000.000 | $52 - $258 |
| Izin Usaha Restoran (Restaurant Business License)(Municipal license, costs vary by city. Jakarta and Bali on higher end.) | Rp 1.600.000 | Rp 6.400.000 | $103 - $413 |
| Sertifikat Laik Hygiene (Hygiene Eligibility Certificate)(Required for all F&B businesses. Annual inspection.) | Rp 800.000 | Rp 4.000.000 | $52 - $258 |
| Work Permit (RPTKA + IMTA) | Rp 12.000.000 | Rp 20.000.000 | $774 - $1,290 |
| KITAS Visa | Rp 4.000.000 | Rp 9.600.000 | $258 - $619 |
| Virtual / Physical Office Address(Per year) | Rp 4.000.000 | Rp 24.000.000 | $258 - $1,548 |
| Total Estimated Range | Rp 36.000.000 | Rp 97.600.000 | $2,323 - $6,297 |
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 Chinesenational, 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
Chinese 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 Chinese Entrepreneurs
Country-specific information for Chinese nationals setting up a business in Indonesia.
Recommended Visa Pathway
Investor KITAS. Chinese nationals benefit from ASEAN+3 business facilitation. B211A available with sponsor.
Estimated processing time: 40 business days
Tax Treaty Information
China-Indonesia DTA active. China taxes worldwide income for residents. Transfer pricing scrutiny is high for Chinese-Indonesian business structures.
Trade Agreements & Bilateral Benefits
ASEAN-China Free Trade Area (ACFTA) provides tariff reductions. ASEAN+3 business facilitation framework applies.
Common Issues for Chinese Nationals
Language barrier is common - hire bilingual Indonesian-Chinese staff
Capital transfer from China subject to SAFE regulations (max $50,000/year for individuals)
Anti-Chinese sentiment exists in some regions - use local business partner
WeChat Pay/Alipay not widely accepted - need Indonesian banking
Document Requirements for Chinese Citizens
- Documents must be notarized by Chinese notary public and authenticated by Chinese Ministry of Foreign Affairs
- Criminal background check from local Public Security Bureau
- Education certificates must be verified by CDGDC
Embassy & Consulate
Chinese Embassy Jakarta: Jl. Mega Kuningan No.2. Chinese Consulates in Surabaya, Medan, and Denpasar.
Business Culture Tips
Indonesia has a significant ethnic Chinese population. Mandarin-speaking staff are available in major cities. Business dinners are common for relationship building. Gift-giving customs are similar.
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
Yogyakarta may have specific local permits (izin usaha) beyond national requirements. Check with the local DPMPTSP (investment office) for Yogyakarta-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 Chinese citizen own 100% of a restaurant in Yogyakarta?
▾
Yes, Chinese nationals can own 100% of a restaurant in Yogyakarta 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 Yogyakarta?
▾
You will need 4 licenses to operate a restaurant in Yogyakarta. 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 Yogyakarta?
▾
Based on the 4 required licenses, government and service fees for a restaurant in Yogyakarta range from Rp 3.200.000 to Rp 14.400.000 (approximately $206 to $929). 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 Yogyakarta?
▾
The typical timeline is 27-104 business days from start to fully operational in Yogyakarta. 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?
▾
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 Yogyakarta without any Indonesian shareholders.
What visa do I need as a Chinese 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 Yogyakarta remotely?
▾
Your PT PMA must have a registered physical or virtual office address in Yogyakarta. 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.