Last Updated on January 14, 2025 by Yasmina
Table of Contents
1. Establish a PT PMA (Foreign-Owned Company)
- What is a PT PMA?
A PT PMA is a legal entity that allows foreign nationals or entities to own and operate businesses in Indonesia. A PT PMA is required for the restaurant business because it involves commercial activities.
- Steps to Establish a PT PMA:
- Reserve a company name (1–3 business days).
- Draft a Deed of Establishment through a local notary.
- Obtain approval from the Ministry of Law and Human Rights.
- Register the company through the Online Single Submission (OSS) system to obtain a Business Identification Number (NIB).
2. Comply with Zoning and Licensing Regulations
- Zoning Compliance:
The restaurant must be located in a commercial zone approved for hospitality or food and beverage businesses. Check local zoning laws to avoid legal complications.
- Licenses Required:
- Restaurant License (TDUP): You can legally operate a food and beverage establishment.
- Building Permit (IMB): Ensure the property complies with construction and safety regulations.
- Food Safety and Hygiene Permits certify that the restaurant adheres to Indonesia’s food safety and health standards.
3. Understand Minimum Capital Requirements
- For a PT PMA, the minimum paid-up capital is IDR 10 billion (approximately USD 700,000). This applies to most foreign-owned businesses, including restaurants.
- Small-scale restaurants may need to work with legal advisors to explore options for structuring their investment within these regulations.
4. Register for Taxes
- Obtain a Tax Identification Number (NPWP) for your business.
- Register with the local tax office to ensure compliance with Indonesia’s tax obligations, including corporate income tax, VAT (if applicable), and employee taxes.
5. Hire Local and Foreign Employees
- Employment Quotas:
While you can hire foreign nationals for management or specialized roles, Indonesian law requires a certain ratio of local to foreign employees.
- Work Permits:
For foreign employees, you’ll need to obtain a KITAS (Temporary Stay Permit) and work permits through the Ministry of Manpower.
6. Market Your Restaurant
- Focus on the growing tourism industry in Lombok by offering a unique dining experience. Popular concepts include beachfront cafes, eco-friendly dining, and fusion cuisine that blend local and international flavors.
- Utilize platforms like Google Maps, Instagram, and TripAdvisor to attract tourists and locals.
Legal and Practical Considerations
1. Negative Investment List and Positive Investment List
- Indonesia’s Positive Investment List outlines industries where foreign ownership is allowed. Food and beverage businesses, including restaurants, are permitted but may have restrictions depending on location and scale.
2. Environmental and Social Impact
- Restaurants must adhere to environmental regulations, especially in ecologically sensitive areas like beachfront properties.
- Collaborate with local suppliers and support the community to enhance sustainability and goodwill.
3. Cost of Setting Up a Restaurant in Lombok
- Costs vary depending on location, size, and concept. Common expenses include:
- Land lease or property rental fees.
- Construction or renovation costs.
- Licensing and permit fees.
- Initial inventory, equipment, and staffing costs.
FAQs: Steps to Open a Restaurant in Lombok as a Foreigner
1. Can a foreigner own 100% of a restaurant in Lombok?
Yes, foreigners can own up to 100% of a restaurant in Lombok by establishing a PT PMA, subject to compliance with Indonesian investment laws.
2. What minimum investment is required to open a restaurant as a foreigner?
The minimum paid-up capital for a PT PMA is IDR 10 billion (approximately USD 700,000). However, actual costs depend on the restaurant’s scale and location.
3. Are there restrictions on hiring foreign staff for a restaurant?
Yes, while foreign nationals can be employed for specific roles, quotas require a certain ratio of local to foreign employees. Work permits (KITAS) are mandatory for foreign staff.
4. Do I need special permits for food safety and hygiene?
Yes, food safety and hygiene permits are required to certify that your restaurant complies with health standards.
5. How long does setting up a PT PMA and opening a restaurant take?
Setting up a PT PMA typically takes 1–2 months, while obtaining additional permits and preparing the restaurant for launch can take another 1–3 months.
6. Can I lease land or property for my restaurant as a foreigner?
Yes, foreigners can lease land or property under long-term lease agreements, which are common for setting up restaurants in Lombok.
Conclusion
Given the island’s growing tourism and dining scene, opening a restaurant in Lombok as a foreigner is a promising opportunity. By adhering to Indonesian laws, setting up the appropriate business structure, and catering to the preferences of tourists and locals, you can build a thriving restaurant business in this tropical paradise.
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