Setting Up Hospitality Company Indonesia
- Roger Pay
- 3 hours ago
- 6 min read
Setting Up Hospitality Company Indonesia
Setting up a hospitality company in Indonesia is a strategic move, especially given the country's push for "10 New Balis" and the continued strength of its tourism sector.
For a foreign investor, the process centers on the PT PMA (Foreign-Owned Limited Liability Company) structure. Here is a breakdown of the key steps and regulatory requirements for 2026.
1. Corporate Structure & Capital Requirements
To maintain full or majority control, you must establish a PT PMA.
Minimum Investment: The Indonesian Investment Coordinating Board (BKPM) requires a total investment plan of at least IDR 10 billion (approx. $630,000–$650,000 USD), excluding land and buildings.
Paid-up Capital: At least IDR 2.5 billion must be deposited as paid-up capital.
Shareholders: At least two shareholders are required (individuals or corporate entities).
2. Foreign Ownership Limitations (KBLI)
Ownership limits depend on your specific business classification (KBLI codes). In 2026, the rules generally follow:
3, 4, and 5-Star Hotels: Usually allow 100% foreign ownership.
1 and 2-Star Hotels: Often restricted to domestic investors or require a local partner.
Restaurants: Large-scale restaurants (typically 40+ seats) allow 100% foreign ownership, whereas small "café" setups are often reserved for local SMEs.
3. The Registration Process
Indonesia uses the OSS RBA (Risk-Based Approach) system to streamline licensing.
Deed of Establishment: Prepared by a local notary and legalized by the Ministry of Law and Human Rights.
NIB (Business Identification Number): This is your primary "identity card" for the business, acting as a basic license, import ID, and customs access.
Location Permit (KKPR): You must ensure your land is "zoned" for hospitality. This is a critical first step, as building a hotel on agricultural or residential land is strictly prohibited.
4. Sector-Specific Licenses
Once the PT PMA is active, you will need:
PBG & SLF: These have replaced the old "IMB" building permits. They certify that the building meets construction and safety standards.
Environmental Permits (SPPL, UKL-UPL, or Amdal): Required based on the size and impact of your project.
Standard Certificates: Based on the risk level assigned in the OSS system, you may need a "verified" certificate to prove you meet national hospitality standards.
Alcohol License (SIUP-MB): If you plan to serve alcohol, this is a separate and often location-specific application.
5. Strategic Considerations
Feature | Detail |
Investor KITAS | As a director/shareholder with sufficient capital, you are eligible for a 2-year residency permit (KITAS), which simplifies staying in the country to manage operations. |
Land Rights | Foreigners/PT PMAs cannot "own" land (Hak Milik) but can hold Hak Guna Bangunan (HGB), which is a "Right to Build" for up to 30 years (extendable to 80). |
Tax Incentives | Check for "Tax Holidays" or "Tax Allowances" if you are building in Special Economic Zones (SEZ) like Mandalika or Tanjung Lesung. |
A Quick Tip on Location
While Bali remains the primary target, the government is currently offering significant administrative and tax "red-carpet" treatment for developments in the "Super Priority Destinations" (Borobudur, Likupang, Labuan Bajo, Mandalika, and Lake Toba).
Are you looking at a specific region for this setup, such as Bali or one of the emerging islands?
Fees
Setting up a hospitality company in Indonesia involves two distinct financial buckets: the Capital Injection (what you must invest in the business) and the Administrative Costs (what you pay to government bodies and consultants).
As of 2026, the regulatory landscape has shifted significantly under BKPM Regulation No. 5 of 2025, which reduced the "entry ticket" for foreign investors.
1. Capital Requirements
The most critical change for 2026 is the decoupling of "Paid-up Capital" from the "Total Investment Plan."
Category | Requirement (IDR) | Approx. USD | Timing |
Paid-up Capital | IDR 2.5 Billion | ~$155,000 | Deposited once company bank account is open. |
Total Investment | > IDR 10 Billion | ~$620,000 | Realized progressively (typically over 3–5 years). |
Note: The IDR 10 billion requirement applies per 5-digit KBLI code. If you are doing both a Hotel (55111) and a large Restaurant (56101), your total investment plan must exceed IDR 20 billion.
The 12-Month Rule: New for 2026, the IDR 2.5 billion paid-up capital is subject to a "lock-up" period. It cannot be moved out of the Indonesian account for 12 months unless deployed for genuine business expenses (e.g., payroll, rent, equipment).
2. Administrative & Setup Fees
These are the out-of-pocket costs to get the legal entity live and the team on the ground.
Incorporation & Licensing
Professional/Consultant Fees: For a full PT PMA setup (including name reservation, deed drafting, and OSS registration), expect to pay between $3,000 and $5,000 USD.
Notary Fees: Usually 1% – 2% of the transaction value if purchasing land/property, or a flat fee of IDR 10M – 20M for standard incorporation deeds.
NIB & Basic Licensing: Free (IDR 0) on the OSS-RBA system, though most consultants bundle this into their setup fee.
Residency & Work Permits (KITAS)
If you or your directors are moving to Indonesia, these are the costs per person:
Investor KITAS (Index E28A):
Government Fee: Approx. IDR 1.5M – 3M depending on the duration (1 or 2 years).
Levy (DPKK): $0 (Investors are exempt from the $1,200/year "foreigner tax" required for regular employees).
Working KITAS (Standard Employees):
DPKK Levy: $1,200 USD/year (Paid upfront to the Ministry of Manpower).
Visa/KITAS Processing: Approx. IDR 10M – 15M per person including agent fees.
3. Real Estate Transaction Fees (If applicable)
If your hospitality project involves acquiring land rights (HGB):
Buyer Tax (BPHTB): 5% of the declared transaction value.
Notary/PPAT Fees: 1% of the transaction value for the Sale and Purchase Deed (AJB).
Due Diligence: $1,000 – $4,000 USD (Highly recommended for title verification and zoning checks).
Summary Checklist for Budgeting
Entry Capital: IDR 2.5 Billion (liquid).
Legal Setup: ~$4,000 USD.
Visa/Permits: ~$1,500 USD per person.
Office/Domicile: Variable (Virtual offices are accepted for initial setup in many cities, typically $500 – $1,000 USD/year).
Important Deadline: Ensure your business activities are mapped to the KBLI 2025 codes. All companies must complete migration to these new codes by June 18, 2026, to avoid administrative freezes.
Scaling Hospitality in Paradise: How Bestar Indonesia Simplifies Your Market Entry
Expanding your hospitality brand into Indonesia in 2026 is no longer just about finding the right location in Bali or Lombok; it’s about navigating a high-tech, "Agentic-First" regulatory environment. As the Indonesian government pushes its "Super Priority Destinations" and streamlines licensing through the OSS-RBA system, the barrier to entry has evolved.
At Bestar, we bridge the gap between complex Indonesian bureaucracy and your business goals. With over 30 years of regional expertise, we provide the "Launchpad" services necessary to transform your hospitality vision into a compliant, operational reality.
1. Strategic PT PMA Setup & KBLI Optimization
The foundation of your Indonesian venture is the PT PMA (Foreign-Owned Limited Liability Company). However, the secret to a smooth setup lies in selecting the correct KBLI 2025 codes.
100% Ownership: We identify the specific classifications—such as 3 to 5-star hotels or large-scale restaurants—that allow for 100% foreign control.
Capital Structuring: Under BKPM Regulation No. 5 of 2025, the minimum paid-up capital is IDR 2.5 billion. Bestar assists in structuring this injection and managing the required IDR 10 billion total investment plan per business activity.
Regulatory Migration: We ensure your entity is fully compliant with the June 18, 2026, deadline for KBLI 2025 code migration, preventing any administrative freezes on your NIB (Business Identification Number).
2. Digital-First Licensing via OSS-RBA
The Indonesian Online Single Submission (OSS) system is now risk-based. Hospitality projects—ranging from boutique resorts to beach clubs—often fall into medium-to-high risk categories.
NIB & Sectoral Permits: We handle the end-to-end registration to secure your NIB, which acts as your business ID, import license, and customs access.
Environmental & Building Compliance: Bestar coordinates the acquisition of PBG (Building Permit) and SLF (Certificate of Occupancy), alongside mandatory environmental assessments (SPPL or UKL-UPL).
Specialized Hospitality Licenses: From Halal certification for your kitchens to SIUP-MB for alcohol service, we manage the secondary permits that are often the biggest bottlenecks for new operators.
3. "Agentic-First" Financial & Compliance Support
In line with our philosophy of "Invest To Live, Not Live To Invest," Bestar integrates AI-driven automation into your back-office from day one.
SMART Audit & Accounting: We implement cloud-based systems like Xero or QuickBooks, allowing you to monitor your Indonesian resort's performance in real-time from our Singapore or Hong Kong offices.
Tax Efficiency: Our experts navigate the Indonesian corporate tax landscape, ensuring you take advantage of Tax Holidays or incentives available in Special Economic Zones (SEZ) like Mandalika.
Payroll & HR: We manage local social security (BPJS) and payroll for your hospitality staff, ensuring 100% compliance with Indonesian labor laws.
4. Immigration & Executive Mobility
Opening a hospitality company requires on-the-ground leadership. Bestar simplifies the residency process for you and your key executives.
Investor KITAS: We facilitate the E28A Index Investor KITAS, allowing you to live and manage your business in Indonesia for up to 2 years (extendable) with zero DPKK levy fees.
Work Permits: For your specialized chefs or general managers, we handle the Working KITAS and the associated Ministry of Manpower (TKA) filings.
Why Choose Bestar for Your Indonesia Expansion?
Feature | Bestar Advantage |
Regional Reach | Seamless coordination across Singapore, Malaysia, and Indonesia. |
Compliance Speed | Proactive KBLI 2025 migration and OSS-RBA optimization. |
Tech Integration | Agentic-First models that automate your front and back office. |
Transparency | "Zero Bill Shock" pricing with no hidden ad-hoc administrative charges. |
Ready to Launch?
The Indonesian hospitality market is ripe for "lifestyle engineered" brands that prioritize both luxury and digital efficiency. Don't let paperwork delay your opening.
Contact Bestar today to schedule a consultation with our regional expansion team and secure your place in Indonesia’s growing tourism economy.
Email: admin at bestar-asia.com
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