How to Successfully Open a Restaurant and Bar in Bali 2026

A Definitive Guide for Foreign Investors

Bali remains the “Crown Jewel” of Southeast Asian tourism, attracting millions of visitors and savvy entrepreneurs every year. However, the island’s regulatory environment has entered a new era of digital strictness. To open a restaurant and bar in Bali 2026, foreign investors must navigate a refined legal landscape that prioritizes sustainability, zoning precision, and centralized tax compliance. Gone are the days of informal “trial runs.” Today, the Indonesian government utilizes a sophisticated digital audit system to ensure that every establishment—from the trendiest beach club in Uluwatu to a boutique bistro in Ubud—is fully documented and legally sound.

The 2026 Shift: Why Compliance Can No Longer Wait

The most critical update for any investor is the upcoming enforcement deadline on March 31, 2026. The Ministry of Tourism and the Ministry of Investment (BKPM) have signaled that the “grace period” for unverified business licenses is ending. By this date, all hospitality businesses must have their licenses fully verified within the Online Single Submission (OSS) system.

The pressure is rising because authorities have started a “manual-digital hybrid” audit. 

This involves cross-referencing public listings on platforms like Google Maps and TripAdvisor against the national business registry. If a business is found operating without the correct permits, it faces immediate administrative sanctions or even physical closure. For those looking to open a restaurant and bar in Bali 2026, starting with a clean, fully compliant structure is the only way to protect your capital.

Step 1: Establishing Your Legal Vehicle (PT PMA)

Foreigners cannot legally own a small “Rumah Makan” (local eatery), as these are reserved for 100% Indonesian ownership. To enter the market, international investors must establish a PT PMA (Foreign-Owned Limited Liability Company).

Key requirements for a PT PMA in 2026 include:

• Minimum Capital Investment: Total investment value must exceed IDR 10 billion (excluding land and buildings) per business activity (KBLI).
• Paid-up Capital: At least IDR 2.5 billion must be injected as paid-up capital into a local corporate bank account.
• Shareholding Structure: A minimum of two shareholders is required, which can be individuals or corporate entities.

Step 2: Selecting the Correct KBLI 56101 Restaurant Bali Classification

Choosing the right code in the Indonesian Standard Industrial Classification (KBLI) is where many investors falter. For a standard dining establishment, you will primarily look at KBLI 56101 restaurant Bali standards. This code covers activities where food and beverages are served for consumption on-site. 

However, if your concept includes a vibrant nightlife or high-volume alcohol sales, you must also add KBLI 56301 (Bar). Under the Risk-Based Approach (OSS-RBA), these codes carry different risk profiles. A restaurant is often classified as “Medium-High Risk,” while a bar can be “High Risk” depending on its capacity and alcohol percentage. This classification dictates the level of government verification required before you can legally serve your first guest.

Step 3: Securing Zoning Approval KKPR Bali

In Bali, location is everything, but land use is strictly regulated. Before signing a long-term lease or purchasing land rights, you must secure Zoning approval KKPR Bali (Kesesuaian Kegiatan Pemanfaatan Ruang). 

The OSS system now automatically checks your property’s GPS coordinates against the Digital Spatial Plan (RDTR). If your chosen plot is in a “Green Zone” (Agricultural) or a “Residential-only” zone, the system will block your license application instantly. This digital filter has become the number one reason many hospitality projects stall. It is essential to perform a “due diligence” check on the land’s zoning status before committing any funds.

Step 4: The Mandatory Restaurant Sanitary Certificate Indonesia

Hygiene and safety have become central to the 2026 regulatory push. Every establishment must obtain a Restaurant sanitary certificate Indonesia (Sertifikat Laik Higiene Sanitasi). This is not just a formality; it requires a physical audit of your premises.

To qualify for this certificate, your business must prepare:

• Laboratory Testing: Water quality and food samples must be tested at a government-approved lab.
• Staff Certification: At least 50% of your kitchen and service staff, plus one manager, must complete a certified food safety and hygiene course.
• Kitchen Layout: Your facility must meet specific ventilation, drainage, and waste management standards.

Failure to maintain these hygiene standards can result in the revocation of your NIB, making the sanitary certificate a vital pillar of your ongoing operation.

Key Updates for Alcohol Licensing (SIUP-MB) in 2026

If you plan to open a restaurant and bar in Bali 2026, you must understand the new alcohol licensing (SIUP-MB) protocols. The government has tightened the distribution of “Group B” and “Group C” alcohol licenses (wine and spirits). Under the latest Government Regulation No. 1 of 2026 regarding Food Safety, the supervision of alcohol sales has shifted toward a more digital, traceable model. Businesses must report their monthly alcohol inventory and sales through the centralized portal. 

Furthermore, your location must be a certain distance from religious sites and educational institutions. BusinessHubAsia provides specialized advisory to help investors secure these high-value permits without the usual bureaucratic delays.

Missing the March 2026 Deadline

The urgency cannot be overstated. By March 31, 2026, the Indonesian government intends to “cleanse” the market of unlicensed hospitality inventory.

• The “OTA Purge”: Platforms like Airbnb and Booking.com have been instructed to delist properties that do not have a “Verified” NIB.
• Operational Fines: Operating without a sanitary certificate or a verified KBLI in 2026 will result in heavy daily fines.
• Investor Visa Risk: If your company is flagged for non-compliance, your personal Investor KITAS may be at risk of revocation.

Proactive investors who align their businesses with these standards now will find themselves at a massive competitive advantage when the “purge” begins, as they will capture the market share left behind by non-compliant operators.

Building a Legacy in Bali

Success in the Bali hospitality scene is no longer just about the vibe; it is about the validity. To open a restaurant and bar in Bali 2026 is to participate in one of the most exciting economic stories in the world, but it requires respecting the local laws and the island’s unique spatial constraints. Compliance is not a hurdle; it is your competitive edge. When your licenses are “Verified” and your certificates are in order, you can focus on what matters most: creating unforgettable experiences for your guests.

Don’t wait for the 2026 deadline to catch you off guard. Reach out to BusinessHubAsia today for a comprehensive “Hospitality Health Check” and expert guidance through the licensing maze. Let us handle the bureaucracy so you can focus on building your Bali empire. Contact us for the best assistance on the island.