Bali remains a favorite destination for both domestic and international tourists, making the culinary sector on the Island of the Gods a highly promising business opportunity. For foreign investors looking to start a food and beverage business, establishing a Foreign Direct Investment company (Penanaman Modal Asing / PMA) is the proper route to operate legally in Indonesia. However, specific requirements for PMA restaurant establishment in Bali must be met so that business operations strictly comply with prevailing regulations.
Requirements for PMA Restaurant Establishment in Bali
Regulations regarding PMA capital currently refer to the Regulation of the Minister of Investment and Downstreaming / Head of BKPM No. 5 of 2025. Based on these provisions, foreign investors must fulfill several primary aspects:
- Establishing a PT PMA and Minimum Paid-up Capital
Foreign investors must establish a legal entity as a Limited Liability Company with PMA status (PT PMA). The minimum issued and paid-up capital is IDR 2.5 billion per company. These funds cannot be transferred out of the company account within 12 months from the date of deposit, except for operational needs or acquiring assets such as buildings and equipment.
- Fulfilling Minimum Investment Value Provisions
Foreign-owned restaurants are categorized as large-scale businesses. The required minimum investment value is above IDR 10 billion (excluding land and buildings), calculated per initial 2-digit KBLI code for 1 business site location per regency/city.
- Determining the Appropriate KBLI Code
For a restaurant business located in a permanent building, the applicable code is KBLI 56101 (Food Provision Activities in Permanent Buildings). This code covers restaurant operations and the provision of food ready for on-site consumption. Ensure that your business model aligns with the criteria of this KBLI code.
Licensing and Legal Documents for PMA Restaurants in Bali
Once the corporate setup and capital requirements are fulfilled, the next step is processing business permits through the Online Single Submission (OSS RBA) system to complete all the requirements for PMA restaurant establishment in Bali. Below are the required legal documents and licenses:
- Business Identification Number (NIB)
Issued through OSS, the NIB serves as the primary identity for business entities. Corporate data integrates directly with the Legal Entity Administration System (SABH) of the Ministry of Law and Human Rights.
- Spatial Utilization Suitability Approval (KKPR)
Bali enforces strict spatial planning rules and local cultural zoning norms. The KKPR document is essential to confirm that the restaurant location resides within an approved tourism or commercial zone.
- Standard Certificate
PMA restaurants are classified as medium-high or high-risk businesses, requiring a verified Standard Certificate issued via the OSS system.
- Hygiene and Sanitation License (SLHS)
Issued by the local Health Office (Dinas Kesehatan) following inspections covering sanitation standards, water quality, and kitchen hygiene compliance.
- Building Approval (PBG) and Certificate of Fitness for Occupation (SLF)
PBG and SLF are required to guarantee the legal standing, safety, and structural functionality of the restaurant building prior to opening.
- Alcoholic Beverage License (SIUP-MB)
A specialized distribution and sales permit required if the restaurant serves alcoholic beverages such as wine, beer, or cocktails.
- Foreign Worker Utilization Plan (RPTKA) Approval
An RPTKA approval must be secured if the restaurant employs expatriate staff or an executive chef holding foreign nationality.
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