Reviewed by Florent Delente, Founder, ILA Global Consulting. Last updated: October 2026.
A foreigner can still open a restaurant in Bali in 2026, through a foreign-owned company (PT PMA) registered under KBLI 56101 (restaurant). What you can no longer open as a new foreign company is a café, coffee shop or “drinking house” under KBLI 56303, which Bali closed to new PT PMA licences in May 2026. Plan for IDR 2.5 billion of paid-up capital, a verified standard certificate, a hygiene certificate, halal certification or a clear non-halal notice, an alcohol licence if you serve drinks, and a 10% regional restaurant tax collected from your guests.
This guide is for foreign founders, chefs and investors planning a restaurant in Bali, and for owners of an existing venue who want to check that it is compliant. If you want the licensing done for you, ILA’s business setup team checks your concept against OSS before you sign a lease, then handles the company registration and the alcohol licence. Dollar figures use IDR 17,900 per USD, the rate on 5 October 2026 (Katadata), so treat them as approximate.
Can a foreigner still open a restaurant in Bali in 2026?
Yes, but the concept has to be a restaurant in law, not a café. On 22 and 23 July 2026, Governor Wayan Koster announced that Bali had closed OSS access for new foreign investment companies in 18 business codes, a block he said had applied since the third week of May 2026 with the approval of the Minister of Investment (NusaBali; ANTARA). Among them is KBLI 56303, “drinking houses or cafés”. Restaurants (56101) are not on the list.
There is a second layer. In May 2026, before the list was published, OSS was already refusing new Bali PMA applications for every code rated low or medium-low risk (Emerhub, 18 May 2026). A restaurant run by a PT PMA is classed as a large business and rated medium-high risk under PP 28/2025, the risk-based licensing regulation (Hukumonline, 25 June 2026; PP 28/2025). So the restaurant code sits outside both the published list and the wider low-risk block.
| Your concept | KBLI | Risk level for a PT PMA | New PT PMA in Bali, October 2026 |
|---|---|---|---|
| Restaurant (table service, full menu) | 56101 | Medium-high | Open |
| Bar | 56301 | Medium-high | Not on the 18 list; alcohol licence needed |
| Café, coffee shop, juice or drinks house | 56303 | Medium-low | Closed since May 2026 |
| Traditional medicine or jamu shop | 56305 | n/a | Closed since May 2026 |
| Food retail or deli | 47249 | n/a | Closed since May 2026 |
| Catering (events, contracts) | 5621x | Check OSS | Not on the 18 list |
Sources: Hukumonline for 56101; kbli.co.id on 56301 and 56303 for risk levels at large scale; Periskop, 23 July 2026 for the closed list.
The practical trap is the label. A “specialty coffee and brunch” place whose sales are mostly drinks is a café in the eyes of a licensing officer, whatever you call it. If you register 56101 and operate a coffee shop, you risk an audit finding that your activity does not match your licence. Build the concept, the menu and the floor plan as a restaurant from day one. The full list of closed codes and the sectors still open is in our guide to business opportunities in Bali.
Which company structure should you use?
You need a company. A foreigner cannot hold a business licence (NIB) as an individual, and running a restaurant through a local friend’s personal licence leaves you with no legal rights to your own business.
| Structure | Who owns it | Restaurant in Bali | Main risk |
|---|---|---|---|
| New PT PMA | Foreign shareholders, 100% allowed for 56101 | Yes, under 56101 | Capital, verified licences, quarterly reporting |
| Existing PT PMA bought from its owners | You, after a share transfer | Yes, if its licences fit the concept | Hidden tax, LKPM and labour liabilities; a café code cannot be converted |
| PT PMDN (Indonesian-owned) | Indonesian citizens only | Yes, and not affected by the Bali list | A foreigner cannot hold shares |
| Nominee (an Indonesian holds shares “for you”) | Legally, the nominee | Looks possible on paper | Void under Article 33 of the Investment Law; you can lose everything |
KBLI 56101 is not reserved for small businesses and has no foreign ownership cap under the Positive Investment List (Perpres 10/2021 as amended by Perpres 49/2021), so a PT PMA can own 100% of it (Hukumonline; Perpres 49/2021).
Partnering with an Indonesian who owns a PT PMDN can work if they are a real partner who owns and runs the business with you, and you are paid as a supplier, consultant or employee with the right permit. It does not work as a disguise. Any agreement where an Indonesian holds shares on behalf of a foreigner is void (Law 25/2007, Art. 33). The step-by-step company formation is in our PT PMA setup guide, and the PT PMA formation service page explains what ILA handles.
How much capital does a restaurant PT PMA need?
Two numbers apply under BKPM Regulation 5/2025, in force since 2 October 2025 (BPK legal database):
- Paid-up capital: IDR 2.5 billion (about USD 140,000), paid in cash into the company’s bank account (Withers).
- Investment plan: more than IDR 10 billion (about USD 559,000), excluding land and buildings. For food and beverage services, this is counted per two-digit KBLI group (56) per location, and a location means one regency or city (Hukumonline, citing Art. 26(3)(b)).
The investment plan is a commitment, not a deposit. Equipment, kitchen fit-out, furniture, permits and working capital count toward it.
Worked example. A PT PMA opens a restaurant in Canggu (Badung) and later a second one in Seminyak (also Badung). Both sit in KBLI group 56 in the same regency, so one IDR 10 billion plan covers both. A third outlet in Ubud (Gianyar) is a new location and needs its own plan.
If you also want an investor KITAS (E28A), the test is different: you personally need shares worth at least IDR 10 billion (Immigration, E28A). Most restaurant founders with IDR 2.5 billion paid up take a working KITAS (E23) as director instead.
Which licences does a restaurant in Bali need?
The NIB (Nomor Induk Berusaha, business identification number) is only the start. Because 56101 is medium-high risk for a PT PMA, the NIB is not enough to open the doors.
| Licence or registration | What it is | Issued by | Notes |
|---|---|---|---|
| NIB | Business identification number | OSS | Issued after the Ministry of Law approves the company |
| KKPR / PKKPR | Confirmation that the site’s zoning allows a restaurant | OSS, checked against the regency spatial plan | Check before you sign the lease |
| PBG and SLF | Building approval and certificate of fitness for use | Regency or city | Required to build or convert; a house used as a restaurant needs a change of function (PP 16/2021) |
| Verified standard certificate (Sertifikat Standar) | Confirms the business meets the tourism standard for restaurants | OSS, verified by the authority, with certification by a tourism certification body (LSPr) | Self-assessment first, then verification (Hukumonline) |
| SLHS (Sertifikat Laik Higiene Sanitasi) | Hygiene and sanitation certificate | Regency health office (Dinas Kesehatan) | Kitchen inspection, staff health checks |
| Halal certificate or non-halal notice | Halal assurance for food served | BPJPH | See the halal section below |
| Alcohol licence (SKPL) | Direct seller certificate for drinks consumed on site | Through OSS | See the alcohol section below |
| NPWPD | Regional tax registration for restaurant tax | Regency revenue office (Bapenda) | You collect 10% from guests |
| RPTKA and working KITAS | Permits for a foreign chef or manager | Ministry of Manpower and Immigration | See the staff section |
Two older names you may still read online are not separate permits any more: the SIUP-MB alcohol trading licence, replaced by the SKPL certificates issued through OSS, and the TDUP (tourism business registration), whose role is now played by the NIB and the standard certificate, although some local offices still use the term.
How do you choose and secure a location?
The location decides whether you can be licensed at all, so it comes before the lease.
- Zoning. Ask for the site’s zoning under the regency spatial plan (RDTR). A restaurant needs a zone that allows trade and services or tourism. Rice field and green zones do not.
- Building permits. Ask the landlord for the PBG (or old IMB) and the SLF. A villa or house converted into a restaurant without a change of function cannot get its standard certificate verified.
- Lease terms. Make the lease conditional on OSS accepting your KBLI at that address, and on the PBG and SLF being in place or obtainable. Check that the landlord owns the land (certificate in their name, no dispute or block at the land office) and that the lease allows commercial use, signage and alcohol.
- No virtual office. Bali no longer accepts a virtual office as the registered address of a new PT PMA, and the governor named virtual offices as one of the abuses behind the 2026 restrictions (ANTARA). Register the company at the restaurant itself.
Bali enforcement is real. Between 2025 and 2026 the authorities investigated 426 PMA businesses and sanctioned 423, for fictitious companies, missing building permits and environmental approvals, closed activities and unmet investment thresholds (Emerhub). Our PBG and SLF service checks a site’s building file before you commit.
Does a restaurant in Bali need halal certification?
Yes, unless you serve non-halal food, in which case you must say so clearly. The rules come from Law 33/2014 on halal product assurance and PP 42/2024.
- Medium and large businesses, which includes a PT PMA, have been under the food and beverage obligation since 18 October 2024.
- Micro and small businesses must comply from 18 October 2026, when their transition period ends (Gebrak, 3 September 2026; BPJPH).
- Pork and alcohol are not banned. The head of BPJPH, the halal agency, told Parliament in February 2026 that selling pork or alcohol is allowed as long as it is labelled non-halal (Bisnis, 9 February 2026).
- Sanctions were tightened by BPJPH Regulation 2/2026 of 5 June 2026: written warnings, fines, revocation of certificates and withdrawal of goods (Tilleke & Gibbins).
What this means for you: if your menu is halal, certify the restaurant and its kitchen with BPJPH. If it includes pork, lard, alcohol in cooking or wine pairings, display a clear non-halal notice and do not use halal claims anywhere, including on delivery apps. Mixed menus with a “halal section” in a non-halal kitchen are where complaints and inspections start.
How does the alcohol licence work for a restaurant?
Indonesia sorts alcoholic drinks into three classes: A (up to 5% alcohol, such as beer), B (over 5% to 20%, such as wine) and C (over 20% to 55%, such as spirits) (Kontrak Hukum). A restaurant that serves drinks for consumption on site needs a direct seller certificate: SKPL-A for class A, and SKPL-B and SKPL-C for wine and spirits.
Requirements published by the Denpasar trade office for SKPL-B and C include a tourism business licence, a letter appointing you as a direct seller from a licensed distributor or sub-distributor, a technical data form and, for renewals, an excise registration number (NPPBKC) from Customs (Denpasar Trade Office). Alcohol may only be served to customers aged 21 or over, and venues near schools, hospitals and places of worship face local restrictions.
Three practical points:
- Buy only from licensed distributors. Your appointment letter comes from them, and undocumented stock is the fastest way to lose the licence and face Customs.
- Arak is regulated. Bali has legalised local arak production under a governor’s regulation, but you still buy it through licensed channels.
- The licence is renewable, so diarise it. ILA’s alcohol licence service handles first applications and renewals.
Which taxes does a restaurant pay in Bali?
The old version of this guide said “local tax 11% plus service 5%”. That mixed up two different things, and the VAT figure was wrong.
| Tax | Rate | Who bears it | Basis |
|---|---|---|---|
| Restaurant tax (PBJT on food and drinks) | 10% of the bill | The guest; you collect and pay it to the regency | UU 1/2022 (HKPD) caps PBJT at 10%; Badung applies its Perda 7/2023 as amended by Perda 8/2025 from 1 January 2026 (Pasal.id) |
| VAT | Not charged on restaurant service | n/a | Food and drink served by a restaurant is a regional tax object, so it is outside VAT (DDTC) |
| Corporate income tax | 22% of net profit, with a 50% discount on part of the profit for turnover up to IDR 50 billion | The company | PwC |
| Employee income tax (PPh 21) | Withheld monthly from salaries | Staff, withheld by you | Monthly filing in Coretax |
| Dividends to a foreign shareholder | 20%, or lower under a tax treaty | The shareholder, withheld by the company | PwC |
Service charge is not a tax. Many Bali restaurants add one and share it with staff. The Ministry of Manpower’s rule on service charge distribution (Permenaker 7/2016) covers hotels and restaurants inside hotels (BPK legal database); for a standalone restaurant, set the distribution in your company regulation or employment contracts, show the charge on the menu, and apply it consistently.
Worked example. A dinner bill of IDR 1,000,000 with a 5% service charge: IDR 1,000,000 + IDR 50,000 service + 10% PBJT on the taxable amount. Whether the service charge is part of the PBJT base depends on the regency regulation, so confirm it with Bapenda before you program your point of sale. The restaurant’s profit then pays 22% corporate tax after costs. Full company tax obligations are in our guide to company taxation in Indonesia, and ILA’s accounting team runs the monthly filings.
What does it cost to hire staff in Bali?
Restaurant staff are permanent workers, so most should be on permanent contracts (PKWTT), not rolling fixed-term ones. The 2026 monthly minimum wages for staff in their first year are IDR 3,791,002.57 in Badung (Canggu, Seminyak, Uluwatu), IDR 3,499,878.78 in Denpasar and IDR 3,316,798.48 in Gianyar, which includes Ubud (Merdeka, 27 December 2025).
On top of wages, budget for:
- BPJS Kesehatan (health): 4% of salary paid by the employer and 1% by the employee, on salary up to IDR 12,000,000 (Perpres 82/2018), plus BPJS Ketenagakerjaan (work accident, death, old age and pension). See our BPJS guide.
- THR, the religious holiday allowance, one month’s wage per year.
- Overtime at the statutory rates; restaurant hours make this the cost most often underestimated.
A foreign head chef or general manager needs a working KITAS (E23) sponsored by your PT PMA, an approved RPTKA (foreign worker plan), and the DKPTKA levy of USD 100 per month (SSEK; PP 34/2021). The KITAS fee is IDR 7,000,000 for one year (Immigration, E23). Working in your own kitchen on a visa on arrival is illegal work and can end in deportation (Law 6/2011). The contract rules are in our employment contracts guide and the visa side in how to work legally in Bali.
How long does it take and what does it cost to open?
The sequence below assumes the site already has zoning that allows a restaurant and a usable building permit. If not, add the PBG and SLF process first.
| Step | Typical time | Government fee or amount | Source |
|---|---|---|---|
| Concept, KBLI and site check in OSS | 1 to 2 weeks | None | OSS |
| Deed of establishment and Ministry of Law approval | 1 to 5 working days | IDR 5,000,000 (about USD 279) where authorised capital is above IDR 5 billion; IDR 1,500,000 between IDR 1 and 5 billion | PP 30/2026 |
| NIB and tax number (NPWP in Coretax) | A few working days | None | OSS |
| Bank account and capital deposit | 1 to 3 weeks | IDR 2.5 billion paid up, stays company money | Withers |
| PBG and SLF (if building or converting) | Weeks to months | Regional retribution, varies by size | PP 16/2021 |
| Verified standard certificate, SLHS | Weeks | Regional fees where applicable | Hukumonline |
| Halal certification (if halal) | Weeks | BPJPH tariff | BPJPH |
| Alcohol licence (SKPL) and NPPBKC | Weeks | Check with the trade office and Customs | Denpasar Trade Office |
| Director’s or chef’s KITAS | Several weeks | IDR 7,000,000 per year plus USD 100 per month DKPTKA | Immigration, E23 |
What can go wrong when opening a restaurant in Bali?
These are the problems we see most often:
- Registering a café as a restaurant. If your sales are mostly coffee and drinks, an inspector may call it 56303, which is closed to new PT PMAs. Design the concept as a restaurant.
- Signing the lease first. Rent paid on a site you cannot license is money gone. Make the lease conditional on OSS and zoning.
- Using a nominee. A PT PMDN in a friend’s name is void as a holding structure and has cost foreigners their whole investment.
- Ignoring music royalties. Playing music in a restaurant requires royalties paid through LMKN, the national collective management body, under PP 56/2021 and Ministerial Regulation 27/2025 (SIP Law Firm). In July 2025, Bali police named the director of the company behind Mie Gacoan’s Bali outlets a suspect over unpaid royalties. The 2016 LMKN tariff for restaurants and cafés is IDR 60,000 per seat per year for copyright plus IDR 60,000 for related rights (SmartLegal).
- Halal claims you cannot back up. A “halal-friendly” label on a delivery app with pork in the kitchen is a complaint waiting to happen.
- Single-use plastics. Bali’s governor banned the production of bottled water under one litre on the island in April 2025 as part of a wider single-use plastic policy (ANTARA Bali). Plan glass bottles or filtered water from the start.
- Missing LKPM reports. A PT PMA files an investment activity report every quarter in OSS, even before opening. Missed reports lead to warnings and, eventually, licence problems.
- Undocumented alcohol stock. Buy only from your appointed distributor and keep the invoices.
Get your restaurant licensed in the right order
The 2026 rules reward founders who check first and spend second. ILA confirms your KBLI and site in OSS, forms the PT PMA, coordinates the PBG and SLF, prepares the standard certificate, halal and alcohol files, and sets up payroll and tax. Contact our team before you sign a lease, in English, French or Indonesian.
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Frequently asked questions
Can a foreigner own 100% of a restaurant in Bali?
Yes, through a PT PMA registered under KBLI 56101. Restaurants have no foreign ownership cap and are not on Bali’s 2026 list of codes closed to new foreign companies.
Can a foreigner open a café or coffee shop in Bali?
Not through a new PT PMA. KBLI 56303 (cafés and drinking houses) has been closed to new PT PMA licences in Bali since May 2026. An existing licensed company keeps its licence; a new project must be a genuine restaurant.
How much money do I need to open a restaurant in Bali as a foreigner?
The PT PMA needs IDR 2.5 billion (about USD 140,000) of paid-up capital and an investment plan above IDR 10 billion per regency for its food and beverage activities, excluding land and buildings. The lease, fit-out and equipment come on top of government fees, which are small.
What is the restaurant tax in Bali?
A regional tax on food and drinks (PBJT) of up to 10%, collected from guests and paid to the regency. Restaurant meals are not subject to VAT.
Does my restaurant need halal certification?
If your food is halal, yes: medium and large businesses, including PT PMAs, have been covered since October 2024, and micro and small businesses from 18 October 2026. If you serve pork or alcohol, you do not certify but must clearly state that the food is non-halal.
Which alcohol licence does a restaurant need?
A direct seller certificate for on-site consumption: SKPL-A for beer and drinks up to 5%, and SKPL-B and SKPL-C for wine and spirits, plus an excise registration with Customs. You must buy from a licensed distributor.
Can I work in my own restaurant on a tourist visa?
No. Working on a visa on arrival or visit visa, even in your own business, can lead to deportation. You need a working KITAS sponsored by your company, or an investor KITAS if you hold IDR 10 billion of shares.
Sources
- NusaBali: Governor Koster limits OSS access for PMA (22 July 2026)
- ANTARA: Bali blocks foreign investment in 18 business categories (23 July 2026)
- Periskop: Bali closes PMA access in 18 business fields (23 July 2026)
- Emerhub: Bali closes low and medium-low risk PMA licensing in OSS (18 May 2026)
- Hukumonline: Can a PT PMA open a restaurant? (25 June 2026)
- BKPM Regulation 5/2025, JDIH BPK
- Withers: Key takeaways from BKPM Regulation No. 5 of 2025
- PP 28/2025 on risk-based business licensing, JDIH BPK
- Perpres 49/2021 amending the Positive Investment List, JDIH BPK
- Law 25/2007 on Investment, JDIH BPK
- PP 16/2021 on Buildings (PBG and SLF), JDIH BPK
- PP 30/2026 on Ministry of Law non-tax revenue tariffs, JDIH BPK
- PP 42/2024 on halal product assurance, JDIH BPK
- BPJPH: Welcoming the October 2026 halal obligation
- Gebrak: From 18 October 2026, restaurants and UMK products must be halal certified (3 September 2026)
- Bisnis: BPJPH says selling pork and alcohol is fine if labelled non-halal (9 February 2026)
- Tilleke & Gibbins: BPJPH Regulation 2/2026 on halal sanctions
- Denpasar Trade Office: Business requirements in the trade sector (alcohol)
- Kontrak Hukum: Alcohol licence for restaurants (24 November 2025)
- Law 1/2022 on Central and Regional Financial Relations (UU HKPD), JDIH BPK
- Pasal.id: Badung Perda 8/2025 amending Perda 7/2023 on regional taxes
- DDTC: Restaurant meals are a regional tax object, not subject to VAT
- PwC Worldwide Tax Summaries: Indonesia corporate income tax
- PwC Worldwide Tax Summaries: Indonesia withholding taxes (reviewed 11 June 2026)
- Permenaker 7/2016 on service charge in hotels and hotel restaurants, JDIH BPK
- Merdeka: Bali 2026 regency minimum wages (27 December 2025)
- Perpres 82/2018 on Health Insurance, JDIH BPK
- PP 34/2021 on the Use of Foreign Workers, JDIH BPK
- SSEK on Permenaker 8/2021 and the DKPTKA
- Directorate General of Immigration: E23 working visa
- Directorate General of Immigration: E28A investor visa
- Law 6/2011 on Immigration, JDIH BPK
- SIP Law Firm: Music royalty guide (27 December 2025)
- SmartLegal: Mie Gacoan director named suspect over royalties (24 July 2025)
- ANTARA Bali: Bali bans bottled water under one litre (April 2025)
- kbli.co.id: KBLI 56301 Bar and KBLI 56303 Cafés
- Katadata: Rupiah at IDR 17,916 per USD (5 October 2026)
