Can a Singaporean Open a Restaurant in Batam? The Rules for Food Businesses

Can a Singaporean open a restaurant in Batam? Yes, but only through a PT PMA, a foreign-owned Indonesian company, that invests above Rp10 billion. For food and drink, that test is counted across the city. So a single food stall run by a foreigner alone is not a realistic route.

This guide is written from the regulation texts, checked on 4 November 2026. BatamGems is an independent guide, not an agent or a law firm. We take no fee and file nothing. BP Batam is the body that licenses businesses in Batam.

The short answer

• Restaurants are open to foreigners. They are not reserved for small local businesses.
• The catch is size. A foreign owner must run a large business through a PT, investing above Rp10 billion (land and buildings excluded).
• Counted per city. For food and drink, the test covers your 2-digit business code across Batam, not each outlet.
• Tax: 10% local tax on food and drink, unless monthly turnover is Rp20 million or less (Perda Kota Batam 1/2024, Pasal 22 and 30).
• Halal: certify, or label your food as not halal.

Why a food stall does not work for a foreigner alone

You may hear that a foreigner can run a stall only by marrying a local. That is not the rule that matters.

Restaurants and warung are open fields. Under Perpres 10/2021, Pasal 2(1), every field is open unless closed or kept for the central government. The in-force list of fields reserved for cooperatives and small businesses (Perpres 49/2021, Lampiran II) has no restaurant or food-stall code.

What blocks a stall is the size rule. Pasal 7 of Perpres 10/2021 lets foreign investors run only large businesses, investing above Rp10 billion, and only through an Indonesian PT.

The other shortcut is a local partner's name. For a company, UU 25/2007, Pasal 33 makes any agreement to hold shares for someone else void by law. The owner in that deal has nothing to enforce.

The Rp10 billion test, counted per city

The general rule in Permen 5/2025, Pasal 26(2) counts investment per 5-digit business code per project location. Food and drink gets its own rule.

Under Pasal 26(3)(b) and 26(4), the test for food and drink services is counted per first 2 digits of the code (56), per location. A location means a regency or city. In practice, all your food and drink outlets in Batam City add up towards one Rp10 billion. Land and buildings are excluded.

This is why a group of outlets in one city can work where a single stall cannot. The company must also pay up at least Rp2.5 billion (Pasal 26(10)).

For the company steps, see how to set up a PT PMA in Batam.

Licences: KBLI 56101, risk level and the restaurant standard

The business code is KBLI 56101. In KBLI 2025, it covers both restaurants and warung makan under one title (OSS).

On the OSS page for 56101, a restaurant run by a large business is rated medium-high risk (Menengah Tinggi). Every PT PMA counts as a large business (Permen 5/2025, Pasal 26(1)). The same page also asks you to assess your own readiness for the restaurant standard. It covers facilities, organisation and staff, service, products and management.

In Batam, BP Batam issues the business licences and supporting licences (PP 25/2025, Pasal 20(2)). OSS pages can change, so check the risk level again when you apply.

Serving alcohol

The 56101 page lists a separate certificate, the SKPL-A, for direct sale of class A alcoholic drinks. With it comes a duty: alcohol is sold only to customers aged 21 and over.

We found no official fee, timeline or Batam quota for the SKPL-A, so we do not give one. Ask PTSP before you plan a bar menu.

Restaurant tax in Batam (PBJT)

Batam's local tax law is Perda Kota Batam 1/2024. Food and drink is a taxed object under Pasal 21, and the rate is 10% under Pasal 30. Catering pays 2.5%.

Under Pasal 22(2)(a), food and drink outlets with turnover of no more than Rp20 million a month are outside the tax. A Rp10 billion restaurant company is unlikely to sit under that line, but the rule is there. Prices and tax are paid in rupiah; see money in Batam.

Halal: certify or label

UU 33/2014, Pasal 4 says products sold in Indonesia must carry a halal certificate. Product includes services linked to food and drink.

There is a second route. Under Pasal 26, a business using forbidden ingredients does not apply for certification. Instead, it must label its products as not halal.

The dates moved under PP 40/2026. BPJPH published the new dates on 24 October 2026. According to BPJPH:

Before you sign a lease

• Size the plan against Rp10 billion for all your food outlets in Batam City.
• Decide halal or non-halal before you design the menu.
• Decide on alcohol before you pick the licence set.
• Keep every share in its owner's own name.
• Plan trips to Batam Centre with our getting around Batam guide. Your visa-free entry does not allow work; see Batam entry requirements.

Where to file and ask

BP Batam runs a one-stop licensing office (PTSP).

• Counter: Mal Pelayanan Publik Kota Batam, Batam Centre, Batam 29400.
• Licensing WhatsApp: +62 855-6670-011.
• Email: tuptsp@bpbatam.go.id.
• Online: apply through OSS (oss.go.id) or I-BOSS (iboss.go.id).
• Hours: Monday to Friday. The PTSP site (ptsp.bpbatam.go.id) shows two different times, so confirm on WhatsApp first.

Details are from the PTSP service page (ptsp.bpbatam.go.id). For the other routes, including hotels and property, see investing in Batam from Singapore.