How to Set Up an F&B Restaurant or Food Chain in Indonesia as a Foreign Investor

Opening a restaurant chain in Indonesia as a foreigner starts with one question most first-time investors get wrong: which licenses apply to your specific business, not to F&B in general. A dine-in restaurant, a packaged snack brand, and a beverage franchise each trigger a different mix of company structure, KBLI code, and food safety registration. Indonesia’s food service market is on track to reach roughly USD 70 billion in 2026, and the accommodation and food service sector was the fastest-growing part of the economy in the first quarter of the year. The opportunity is real. So is the paperwork.

Is F&B Retail Open to 100% Foreign Ownership?

Most restaurant and food manufacturing activities in Indonesia are open to full foreign ownership. Since 2021, Indonesia has run on a Positive Investment List under Presidential Regulation No. 10 of 2021, which flipped the old logic: a business field is open to 100% foreign investment unless it is specifically restricted. For F&B, the restriction that actually matters is not about foreign ownership caps, it is about business scale.

Indonesian investment law reserves activities classified as micro, small, or medium enterprises (UMKM) for Indonesian citizens. A small neighborhood food stall or warung falls into that reserved category. A restaurant, cafe, or bar operating at medium or large scale does not. That distinction, not a foreign-ownership percentage, is what decides whether you can enter a given F&B sub-sector at all.

Which KBLI Code Fits Your Restaurant or Food Chain?

Every business activity in Indonesia is tied to a KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) code, and the code you register determines your foreign ownership eligibility, licensing pathway, and risk classification under the OSS system. Getting this wrong at incorporation is one of the most common structural mistakes foreign F&B investors make.

The classification system changed in 2025. Indonesia’s Central Statistics Agency (BPS) issued KBLI 2025 under BPS Regulation No. 7 of 2025, replacing KBLI 2020. Foreign investors registering a new PT PMA today use KBLI 2025 codes; companies still on KBLI 2020 codes have until 18 June 2026 to complete the transition. Learn more about the mechanics of how to choose the right KBLI code if your business spans more than one activity.

KBLI 56101: Restaurant

This is the primary code most foreign-owned restaurants, cafes, and dining chains register under. It covers food service from a permanent, fixed premises with cooking and table service, and it is open to micro, small, medium, and large enterprises alike, which is what makes it accessible to a PT PMA. Risk classification depends on business scale rather than seat count: micro enterprises sit at medium-low risk, while small, medium, and large enterprises are classified medium-high risk under current rules.

KBLI 56102: Food Stall

This code covers smaller eateries (rumah makan or warung) and is limited to micro and small enterprises. Foreign investors cannot register under this code. If your concept genuinely fits a food-stall format, it is not available to you as a PT PMA; you would need to scale the concept to restaurant classification or reconsider the business model.

Other Relevant F&B Codes

KBLI 56301 covers bar activities, open only to medium and large enterprises. KBLI 56303 covers cafe activity. Beverage-focused concepts, food manufacturing for retail sale, and catering each carry their own code with different risk levels and, in some cases, different capital triggers. A brand that combines dine-in service with packaged retail products, bottled sauces or branded snacks sold at the counter, for example, may need a primary restaurant code plus a supporting manufacturing or retail code. Each gets checked separately against the Positive Investment List.

PT PMA or Local Franchise: Which Structure Should You Use?

These solve two different problems, and conflating them is where a lot of foreign F&B founders lose time. A PT PMA is the corporate entity that lets you legally operate, hold equity, and earn revenue in Indonesia. Franchising is a licensing mechanism for expanding a proven brand through other operators. You need the first to do business in Indonesia at all. You only need the second if you intend to license your concept to Indonesian franchisees rather than run every outlet yourself.

Setting Up Your Own PT PMA-Owned Outlets

If you plan to own and operate the restaurants directly, a PT PMA is the standard route. Under current rules, a PT PMA needs an investment plan exceeding IDR 10 billion per KBLI business field, excluding land and buildings, with a minimum paid-up capital of IDR 2.5 billion. At least two shareholders, one director, and one commissioner are required. For a full breakdown of how the capital rules apply, review the current thresholds before budgeting your entry. For a wider comparison against other entity types, see how PT PMA compares to a representative office or a domestic PT.

Franchising Your Brand Into Indonesia

If you already run an established F&B brand abroad and want Indonesian operators to open outlets under your name, franchising is the vehicle, governed today by Government Regulation No. 35 of 2024, which replaced the older 2007 franchise regulation. To qualify legally as a franchise under this rule, the business must have a documented, replicable operating system covering staffing, procedures, site selection, and marketing; at least three consecutive years of continuous operation with two years of audited, profitable financial statements; registered intellectual property that anchors the concept; and an obligation to provide ongoing support to franchisees. For the basics of how franchising works as a business model, our companion guide covers the fundamentals.

Both the franchisor and the Indonesian franchisee must hold a Franchise Registration Certificate (Surat Tanda Pendaftaran Waralaba, STPW) from the Ministry of Trade before operating, and franchisors must deliver a Franchise Offering Prospectus to prospective franchisees at least 14 days before signing an agreement. A brand entering Indonesia often does both: registers a PT PMA to run flagship, company-owned locations directly while separately registering the STPW to license the brand to local franchisees for wider expansion.

Step-by-Step: Registering Your F&B PT PMA

Once you have decided on structure and KBLI code, the incorporation and licensing sequence follows a consistent order.

1. Confirm KBLI Eligibility and Draft the Company Deed

A licensed Indonesian notary drafts the deed of establishment in Bahasa Indonesia, covering shareholders, capital structure, management, and your confirmed KBLI code. The deed is submitted electronically to the Ministry of Law and Human Rights (Kemenkumham), which formally registers the entity, typically within three to seven business days.

2. Register Through OSS-RBA to Obtain Your NIB

Once incorporated, the company registers through the Online Single Submission Risk-Based Approach (OSS-RBA) system to obtain its NIB (Nomor Induk Berusaha), which functions simultaneously as your business registration number, import license identification, and the entry point for sector-specific licenses. Because restaurants fall into the medium-high risk category at anything beyond micro scale, the NIB alone is not enough; it must be followed by a verified Standards Certificate.

3. Secure Location, Building, and Environmental Approvals

A physical premises is mandatory for restaurant licensing; virtual offices are not accepted for this type of high-risk, customer-facing business. Expect to obtain KKPR (spatial conformity approval), a building permit (PBG), and an environmental document (SPPL or UKL-UPL depending on scale) before your operational license is finalized.

4. Obtain Health, Hygiene, and Sector-Specific Permits

This is covered in detail in the next section, since it is where most delays happen.

5. Complete Halal Certification Where Applicable

Covered separately below given how time-sensitive this has become in 2026.

6. Register for Tax, BPJS, and Ongoing Compliance

After the NIB, register for a corporate tax ID (NPWP) through the Directorate General of Taxes, enroll staff in Indonesia’s social security system (BPJS), and calendar your first quarterly LKPM investment realization report, due regardless of whether operations have started.

Do You Need PIRT or BPOM MD for Your Food Products?

This is the point where most guides blur restaurants and packaged food manufacturers together, and it is worth separating clearly. Indonesia has two main food circulation permits: SPP-IRT (commonly called PIRT), issued by the local Health Office for home-industry-scale packaged food, and BPOM registration (MD for domestically made products, ML for imports), issued nationally by the Food and Drug Authority for larger-scale or higher-risk production.

Neither applies automatically to a restaurant. Food prepared and served directly to a customer for immediate consumption on the premises, ready-to-eat meals, plated dishes, and drinks made to order, is exempt from PIRT and BPOM registration under BPOM’s own guidance. The registration requirement is triggered specifically by retail packaging: if your restaurant also sells retail-packaged items over the counter or through retail partners (bottled sauces, packaged snacks, bagged coffee, frozen items for takeaway), those specific SKUs need PIRT or BPOM MD depending on scale and risk category, not your dine-in menu.

Two further points matter for a foreign-owned operation specifically. First, PIRT is reserved for home-industry-scale production where the facility can be attached to a residence; a PT PMA’s commercial-scale operation does not qualify for PIRT even for a small packaged product line, it goes straight to BPOM registration. Second, certain product categories cannot use PIRT regardless of scale: frozen food, dairy products, canned meat, and any item requiring cold-chain or high-risk processing must register with BPOM (MD/ML) from the first unit sold.

Where SNI Standards Apply

A small set of food commodities carry mandatory Indonesian National Standard (SNI) certification on top of BPOM registration, regardless of who produces them. Bottled drinking water, cooking oil, wheat flour, iodized salt, refined sugar, and cocoa powder are among the products where SNI marking is compulsory before sale. If your restaurant or supply chain sources or repackages any of these categories under your own brand, factor in SNI certification alongside BPOM.

What Licenses Do You Need Beyond the NIB?

Depending on your concept, expect to layer several sector-specific permits on top of your core business license:

Alcohol Service Permit

Restaurants and bars serving alcoholic beverages need a Direct Sales Permit for Alcoholic Beverages (SKPL-B or SKPL-C depending on category), issued alongside your core business license and subject to additional local government scrutiny.

Tourism Business Registration

Restaurants, particularly those in tourism-designated areas, commonly need a TDUP (tourism business registration) alongside the core F&B license, administered through the local tourism office.

Building and Fire Safety Compliance

Beyond the PBG building permit obtained during incorporation, ongoing fire safety and building compliance inspections apply to commercial food premises, particularly for kitchens using gas or high-heat equipment.

What Health and Hygiene Permits Does a Restaurant Need?

Every restaurant, regardless of ownership structure, needs a Sertifikat Laik Higiene Sanitasi (hygiene and sanitation feasibility certificate) issued by the local Dinas Kesehatan (Health Office), governed by Ministry of Health Decree No. 1098/Menkes/SK/VII/2003. The requirement sits on top of, not instead of, your OSS business license.

In practice, the process runs through OSS but is verified locally. After submitting your NIB and selecting the correct KBLI code, the Health Office and local Puskesmas conduct an on-site environmental health inspection (Inspeksi Kesehatan Lingkungan) covering kitchen layout, water quality, food storage, pest control, and staff hygiene practices. Documentation typically required includes a facility floor plan, proof that the person in charge and at least one food handler have completed a Food Hygiene and Sanitation course, and laboratory test results for water and food samples. If the inspection finds gaps, the office issues corrective recommendations and re-inspects before the certificate is issued; there is no shortcut around a failed inspection beyond fixing the underlying issue.

Is Halal Certification Mandatory for Your Restaurant?

Halal certification in Indonesia stopped being optional for most F&B businesses in October 2024, and the second deadline lands in October 2026. Under Government Regulation No. 42 of 2024 on Halal Product Assurance, medium and large F&B businesses were required to obtain halal certification by 24 October 2024. Micro and small businesses have until 17 October 2026, a deadline the halal authority, BPJPH, has publicly confirmed will not be extended again.

For a PT PMA operating at medium or large scale, which describes most foreign-owned restaurant chains given the minimum capital thresholds, this deadline has already passed: certification should be in place before you open, not treated as a post-launch item. Certification runs through BPJPH, with product testing and inspection carried out by an accredited halal inspection body (LPH) and a fatwa decision issued by the Indonesian Ulema Council (MUI). Each outlet in a chain requires its own certificate; certification is not automatically transferable across locations even under the same brand, which has real operational implications for a multi-outlet rollout. Non-halal products remain legal to sell, but must be clearly labeled as such. Our complete guide to halal certification in Indonesia walks through the two registration pathways and the ongoing Halal Assurance System obligations in more detail.

What Happens If You Skip a License or Miss a Deadline?

Operating without the correct Standards Certificate, hygiene certificate, or halal certification exposes a restaurant to enforcement action ranging from administrative warnings and forced closure to product seizure, and repeated non-compliance can affect renewal of your broader business license. For a PT PMA specifically, failing to submit quarterly LKPM investment reports carries its own consequence: license suspension, independent of any F&B-specific violation. None of these risks are unique to foreign investors. But foreign-owned outlets tend to draw more inspection attention simply because they are more visible, so it pays to get the sequence right the first time.

How Long Does It Take to Open a Restaurant in Indonesia as a Foreigner?

Company incorporation itself, from notarial deed to NIB issuance, typically takes one to three weeks once documents are complete. The variable that actually determines your launch timeline is the sequence of physical-premises approvals and inspections: building and environmental permits, the hygiene and sanitation inspection, and halal certification each add weeks depending on how prepared your facility is at the time of inspection. A realistic total runway from incorporation to opening day for a single restaurant is two to four months; multi-outlet chains should plan certification and inspection timelines separately for each location rather than assuming they run in parallel automatically.

For a wider look at market entry beyond licensing, our step-by-step F&B market entry overview covers investment documents and common compliance mistakes in more depth. Once your outlets are running, ongoing compliance includes quarterly LKPM investment reports, which apply to every PT PMA regardless of sector.