After the government declared the Covid-19 pandemic over, businesses in Indonesia began to recover and expand. We can see an increasing number of new businesses being established. One such business that is currently experiencing rapid growth is the restaurant industry. Quoting from CNBC Indonesia, in an article dated May 26, 2023, entitled Bisnis Kuliner Booming, ESB Bagikan Tips Jadi Juara Pasar menyebutkan:
Currently, the restaurant and catering industry is booming as the economy recovers after the COVID-19 pandemic. The Indonesian Ministry of Industry recorded a 3.68% increase in growth in the restaurant and catering industry in 2022. This figure is up from 2.95% in 2021.
As we know, the restaurant business is one of the businesses that has been greatly impacted by the Covid-19 pandemic.
For foreign investors who want to set up a restaurant in Indonesia, this article will help you understand the restaurant business in Indonesia.
THE MEANING OF FOREIGN INVESTMENT
Based on Article 1 number 6 of Law Number 25 of 2007 concerning Investment, the definition of foreign investment is:
"investment activities to conduct business in the territory of the Republic of Indonesia carried out by foreign investors, either using foreign capital entirely or jointly with domestic investors.”
Therefore, based on the above meaning, apart from using foreign capital entirely, foreign investment can also work together with domestic investors to establish a business in Indonesia.
You can read the article below to understand more about foreign investment companies:
What is meant by a Foreign Investment Company (PMA)?
THE INDONESIAN STANDARD CLASSIFICATION OF BUSINESS FIELDS (KBLI) OF RESTAURANTS
A restaurant's business activity involves selling food and beverages for on-site consumption. To find the KBLI that best suits your business, you can search using keywords via the link this.
Based on our research, the following is the KBLI that is suitable for the restaurant business activity:
56101 Restaurant
This group includes types of service businesses that serve food and drinks for consumption at their business premises, located in part or all of a permanent building, equipped with service services including cooking and serving according to orders.
Therefore, for those of you who want to set up a restaurant business, whether it is domestic investment or foreign investment, you can use KBLI 56101 as your KBLI to carry out restaurant business activities.
ARE THERE ANY PROHIBITIONS OR RESTRICTIONS ON FOREIGN INVESTMENT?
Based on our research, KBLI 56101 is not a KBLI prohibited or restricted from use by foreign investors. Therefore, foreign investors can use it to conduct business in Indonesia, and there are no restrictions on share ownership.
CONCLUSION
Based on the above descriptions, we can conclude that there is no prohibition or capital restriction for foreign investment to establish restaurants in Indonesia, which means that foreign investment can establish restaurant businesses in Indonesia and can own 100% of the capital in the company that runs the restaurant business activities.
Thus the article “Are there any prohibitions or restrictions on foreign investment in establishing restaurants in Indonesia??”, hope this can help you.
