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Culinary Adventures – Set Up a Hawker Stall Business in Indonesia

Unveil your inner chef with 3E Accounting’s concise read on how to set up a hawker stall business in Indonesia.

Indonesia has a seemingly infinite variety of food, and most of it is purveyed by local street vendors. Irrelevant of the time of day, street vendors are always busy feeding the populace. As the fourth most populous country in the world, that’s a lot of food that gets consumed. You can certainly make a good living if you set up a hawker stall business in Indonesia.

 

An Essential Service Industry

Indonesia has a large and upcoming middle class. Their exponential increase in disposable income has had a significant impact on the Food and Beverage (F&B) sector. It has propelled the F&B industry to pole position with regards to the economy. The Indonesian Government’s Ministry of Industry has also invested heavily in this sector to bolster its rise further.

To set up a hawker stall business in Indonesia, you will first need to register your company with the Trade Register or Company Registry. Companies in Indonesia can either be legal entities or business entities. Each has its own requirements – most notably, legal entities need approval, whereas business entities only need registration with relevant government entities.

The following are types of legal entities:

• Local Limited Liability Company (Perseroan Terbatas or PT) which is locally owned
• Limited Liability Company (Perseroan Terbatas Penanaman Modal Asing or PT PMA) which is foreign-owned and needs a Permanent Business License from the Capital Investment Coordinating Board (BKPM)
• Co-operatives

Business entities include:

• Civil Partnerships
• Firms
• Limited Partnerships (Comanditer Venootshcap or CVs)

Its always advisable to speak to company incorporation specialists, such as 3E Accounting. Knowing the pros and cons of each entity will enable you to choose the most appropriate type for your business.

After choosing your company type, you will need to register via the Online Single Submission (OSS) system. The system will issue a Business Identification Number (NIB) which is also the registration certificate and import identification number. You will need to get tax registration done as well.

The F&B industry has much stricter rules and regulations than any other sector as it directly impacts the health of people. You will not be able to begin your hawker business until you get all the necessary licenses. Start this process early as some permits can take up to a year for approval.

All F&B activities are overseen by the National Agency of Drug and Food Control or Badan Pengawas Obat dan Makanan (POM). You will need to register your food products with POM to receive an ML number. Some of the licenses that you may need include:

• Certificate of Free Sales
• HACCP validation
• Certificate of Analysis of Finished Products
• Certificate of Analysis of Raw Materials and Ingredients

As almost 90% of Indonesia’s population is Muslim, halal certification is a preferred option. This certification sets the standard from food preparation to distribution. While it is not strictly required, without halal certification, you will miss out on most of your potential customers.

 

Best Practices With the Right Partners

Setting up a hawker stall business in Indonesia may tie up a lot of your time and energy. To streamline the process, 3E Accounting offers a comprehensive range of services to set up a hawker stall business in Indonesia. You can get assistance regarding incorporation, licensing or compliance regulations from 3E Accounting’s business solution professionals.

Contact 3E Accounting today to work with industry professionals who can help kickstart your business.