Preparing to be A Successful Restaurateur in Indonesia

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Do you like to eat out? Or consider starting up a restaurant? If your answer is the latter, then there are several things you need to know about how to set up a restaurant in Indonesia. Just like two sides of a coin, setting up a restaurant in Indonesia can be tricky. However, if you master the tricks, you will find a way to be a new millionaire. How? Based on data from McKinsey Global Institute, although Rupiah has weakened, the level of consumption is getting stronger. There are approximately 90 million Indonesians – of mostly middle class – who are currently joining the consuming class. These people will spend a lot on the malls, hotels, restaurants, and other kinds of retails. This is why many successful restaurateurs in Indonesia have enjoyed their unlimited passive income now.  How to set up a restaurant in Indonesia?Before you decide to run a business in the restaurant industry, you have to answer the following questions: Are you good enough at cooking? Or do you at least have the passion for food? Have you prepared a business plan for your new restaurant? Have you learned enough about restaurant industry? Have you found a strategically located place with good atmosphere for your restaurant? Do you have any resources such as capital and staff (waiters and chefs) to start your restaurant with?Write down your answer and start working. However, after this step, you will have to get through some more procedures of how to set up a restaurant in Indonesia.  The next step: getting a licenseIn Indonesia, a business that involves food and beverage such as restaurants, cafés, catering services, bars, food stalls, etc. is considered as tourism business. This has been regulated in the Ministerial Regulation of Tourism and Culture Ministry, No. PM. 87/HK.501/MKP/2010. Therefore, every food and drink service business including restaurants must obtain a license/permit before they begin operating by applying for registration to the local government’s agency of tourism and culture and getting your restaurant included in the tourism business list. It usually takes place at the mayor or regent office.Note that before you get your permit in the tourism business, your restaurant has to be registered as a Limited Liability Company/LLC (in Indonesian: Perseroan Terbatas/PT) in Indonesia and Foreign-owned LLC (PT. PMA or Penanaman Modal Asing) for foreigners who also start up their restaurants in Indonesia. Is there any other requirement?Speaking of documents, the required documents that should be submitted to get a license to run your own restaurant are:-           Application form (provided by the local government’s agency of tourism and culture)-          4R-sized photograph of the location and the building of your restaurant (including each room inside)-          Copy of your ID card/passport-          Your company’s taxpayer registration number (NPWP)-          Your company’s Articles of Association-          Building permit (Izin Mendirikan Bangunan or IMB)-          Report of the Environmental Impact Analysis (Analisis Dampak Lingkungan or AMDAL), and Law of Disturbance (Undang-Undang Gangguan).  In addition to that, you also need to obtain other types of license based on the services or products you may offer in your restaurant, such as a Permit for Alcoholic Beverage Trading (Surat Izin Usaha Perdagangan Minuman Beralkohol or SIUP-MB) if your restaurant serves liquor to customers. You will also need a license from a label record or other authorized parties related to music if there is live music or pre-recorded music as an entertainment in your restaurant. So, have you got enough information on how to set up a restaurant in Indonesia? Let’s get to work, then. Good luck! Sources: Smart Legal Consulting Indonesia


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