How to Get a Café Business License Legally in Indonesia
Indonesia’s café culture has exploded in the past decade, driven by a young population, rising middle-class spending, and the popularity of coffee as a lifestyle. From cozy neighborhood cafés to modern coworking coffee spaces, the industry continues to grow rapidly — but many café owners underestimate one critical element: legal licensing.
Running a café legally is not only about serving great coffee. It involves complying with multiple layers of government regulations — from business registration and tax compliance to health, safety, and environmental standards.
This article provides a comprehensive guide to obtaining a café business license (izin usaha kafe) in Indonesia, explaining what makes it different from restaurant licensing, what documents you’ll need, and how to navigate the registration process efficiently.
The Importance of a Legal Café License
Having a proper café license ensures your business operates under legal protection and builds customer trust. Some of the main reasons why licensing is crucial include:
- Legal recognition – Your café is officially acknowledged by the government as a valid business entity.
- Consumer trust – Licensed cafés convey professionalism and commitment to hygiene and food safety.
- Access to funding and partnerships – Financial institutions, delivery platforms, and potential investors require proof of licensing.
- Risk mitigation – Legal permits protect you from penalties, closure, or other enforcement actions by authorities.
- Growth readiness – Properly licensed cafés can expand, franchise, or partner with major brands more easily.
In short, a café license is both a compliance requirement and a strategic investment in your brand’s long-term success.
The Difference Between Café and Restaurant Licenses
Many entrepreneurs assume that cafés and restaurants require the same permits. While both are food-and-beverage (F&B) establishments, their scope and operational focus differ.
| Aspect | Restaurant License | Café License |
| Menu focus | Full meals, diverse menu | Beverages, snacks, light meals |
| Scale of operation | Larger kitchen and seating capacity | Smaller, often lifestyle-oriented |
| Environmental impact | May require UKL-UPL | Often sufficient with SPPL |
| Permitting authority | Ministry of Tourism or local government | Local municipal government |
| Additional permits | Alcohol permit, Halal certification | Music and entertainment permits (if applicable) |
Understanding this distinction helps ensure you apply for the correct permits and meet the right compliance standards.
Required Licenses and Approvals for a Café
To operate legally in Indonesia, a café typically needs to secure the following:
1. Business Identification Number (NIB)
Issued through the Online Single Submission (OSS) system, the NIB is your café’s unique legal identity. It automatically registers your business with multiple agencies, including BPJS, the Ministry of Law and Human Rights, and the tax authority.
2. Commercial or Operational License
This is your primary permit to start operations — legally allowing you to sell food, coffee, and beverages to customers.
3. Environmental Permit (SPPL)
Small-scale cafés are usually required to file a Statement of Environmental Management (SPPL) to confirm that their waste, noise, and emissions are under control.
4. Location and Building Use Permits (PBG and SLF)
The premises must comply with local zoning and building safety regulations. You must obtain a Building Approval (PBG) and a Building Function Certificate (SLF) before opening your café.
5. Health and Hygiene Permits
The local health office will inspect your kitchen, equipment, and employee hygiene to ensure compliance with food safety standards.
6. Halal Certification (Optional but Strategic)
If your café serves Muslim customers, obtaining a Halal Certificate from BPJPH/MUI can increase customer confidence and open access to broader markets.
Required Documents for a Café Business License
Preparing the correct documents ensures a smooth approval process. Below is a general checklist:
| Document | Purpose |
| Deed of Establishment and Legalization | Proof that your business entity (PT/CV) is legally formed. |
| Taxpayer Identification Number (NPWP) | Registration for corporate tax obligations. |
| Business Identification Number (NIB) | Official business ID via OSS system. |
| Lease or Ownership Agreement | Proof of property rights for your café location. |
| Building Approval (PBG) | Verification that the building meets structural and safety standards. |
| Environmental Document (SPPL) | Compliance with local environmental rules. |
| Hygiene & Sanitation Certificate | Ensures safe food preparation and handling. |
| Menu List and Supplier Information | Confirms that your products comply with health regulations. |
| Halal Certificate (if applicable) | Guarantees that ingredients meet halal standards. |
How to Get a Café Business License Legally in Indonesia
Step 1: Establish Your Business Entity
Before applying for any permit, you must legally establish your company — typically as a Limited Liability Company (PT) for medium-sized operations or CV for smaller ones. Korsia Group assists in preparing the notarial deed, Kemenkumham approval, and NPWP registration.
Step 2: Register Your Business on OSS
Access the OSS (Online Single Submission) portal and register to obtain your NIB. The OSS system integrates multiple permit applications into one process, saving time and reducing paperwork.
Step 3: Prepare Environmental and Location Documents
Submit your SPPL (or UKL-UPL, if required) and ensure your café’s location meets zoning regulations. Buildings must have valid PBG and SLF certificates.
Step 4: Apply for the Commercial/Operational License
After obtaining your NIB and environmental approval, apply for your Operational License via OSS. This officially authorizes your café to start selling products.
Step 5: Undergo Health and Hygiene Inspection
The local health authority may inspect your kitchen, equipment, and employee hygiene before granting final approval.
Step 6: Optional Halal Certification
If you want to attract Muslim customers, Korsia Group can assist with the Halal Certification process, ensuring full compliance with BPJPH and MUI regulations.
Step 7: Post-Licensing Compliance
Once approved, you must renew or update your licenses periodically, particularly if you expand, relocate, or change your business ownership.
Benefits of Having a Legal Café License
- Regulatory Protection – Protects you from closure or fines due to non-compliance.
- Business Credibility – A licensed café appears more professional and trustworthy to customers and investors.
- Banking and Tax Benefits – Enables you to open business bank accounts and claim expenses legally.
- Expansion and Partnerships – Legal cafés can collaborate with delivery apps like GoFood, GrabFood, or Traveloka Eats.
- Marketing Advantage – Displaying your permits and certifications reinforces transparency and hygiene commitment.
Common Mistakes to Avoid
- Skipping the OSS registration and operating under a personal name.
- Leasing property without verifying commercial zoning.
- Neglecting environmental requirements (SPPL).
- Failing to renew licenses on time.
- Using unverified food suppliers, which may result in BPOM violations.
Being proactive and compliant from the start saves you from costly administrative and legal issues later.
How Korsia Group Supports Café Entrepreneurs
Korsia Group provides comprehensive consultancy services for café owners — from local startups to international investors entering Indonesia’s thriving F&B scene.
Our team handles every stage of the licensing process, including:
- Business establishment (PT, CV, or PMA)
- OSS registration and NIB acquisition
- Environmental compliance and SPPL documentation
- Food safety, BPOM, and Halal certification support
- Post-licensing maintenance and renewals
With Korsia Group, you gain not only licensing assistance but also strategic legal guidance to ensure smooth, compliant, and scalable business operations.
Conclusion
Starting a café in Indonesia can be a rewarding business venture, but compliance with licensing regulations is non-negotiable. From registering through OSS and obtaining your NIB, to completing environmental, health, and operational approvals, each step is essential to building a trustworthy and long-lasting business.
By partnering with Korsia Group, café entrepreneurs can streamline complex bureaucratic processes while focusing on delivering quality service and customer experience.
A licensed café isn’t just a business — it’s a brand that stands for safety, integrity, and trust.