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Indonesia Expat
Indonesia Expat
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppCanggu has cemented its reputation as Bali's most dynamic culinary destination, attracting restaurateurs from across Asia and beyond. Establishments s
Canggu has cemented its reputation as Bali's most dynamic culinary destination, attracting restaurateurs from across Asia and beyond. Establishments serving regional cuisines — Thai, Japanese, Korean, Indian — have proliferated across the area's main arteries in recent years, reflecting the neighborhood's evolution from surf village to international lifestyle hub.
However, the Indonesian regulatory framework governing foreign participation in the food and beverage sector is among the most prescriptive in Southeast Asia. Under Kepmenaker No. 228 Tahun 2019, the so-called "positive list" legislation, foreigners are permitted to hold only 12 specifically enumerated roles within KBLI sector 56 (food and beverage service activities). These are exclusively executive or highly specialized positions — titles such as Executive Chef, Food and Beverage Manager, or Restaurant General Manager. Standard operational roles, including line cook, bartender, and front-of-house staff, are explicitly closed to foreign nationals.
Before a single foreign employee can be hired, the operating corporate entity must obtain an approved Foreign Worker Utilization Plan, known by its Indonesian acronym RPTKA, from the Ministry of Manpower in Jakarta. This is a precondition — not a formality completed in parallel with hiring. Only after RPTKA approval can the company proceed to sponsor an E23 KITAS, the specific stay permit category for foreign workers, under the framework established by Permenkumham No. 22 Tahun 2023 and its 2024 amendment.
The enforcement picture in Canggu is particularly acute. The inter-agency Foreigner Surveillance Team, known as TIM PORA, has formally designated Canggu as a primary surveillance zone. Immigration authorities have identified foreigners conducting undisclosed commercial management or culinary work on tourist visas — Visa on Arrival (VOA) or standard Visit Visas — as the single most common violation category in Bali. Such conduct triggers unannounced raids (Sidak) conducted jointly by immigration, police, and regional government officers.
The consequences of a Sidak are immediate and severe: detention, deportation, and entry into Indonesia's immigration blacklist, which can be permanent. Corporate entities found to be employing undocumented foreign workers face substantial administrative penalties and potential criminal liability for responsible directors under Indonesia's Manpower Law.
Every new foreign-concept restaurant that opens in Canggu is, in effect, a compliance test case. The enthusiasm for authentic international cuisine in Bali is real and commercially rewarding — but the
gap between opening a restaurant and opening it legally with foreign involvement is wide, and it catches people every year.
The positive list under Kepmenaker 228 is not a technicality that can be n
avigated around. It is enforced. The distinction between an 'Executive Chef' role that is permissible and a 'working chef' role that is not is one that TIM PORA officers understand precisely. We have seen situations where a foreigner holds the right visa but the wrong job title on paper, and the on-the-ground reality of their day-to-day role triggers a violation finding.
For any foreign national with an ownership stake, a management function, or a culinary role in a Bali F&B business, the compliance pathway must be established before operations begin — not retrofitted after the fact. The RPTKA process alone requires corporate documentation, an approved PT PMA or PT structure, and Ministry review that takes weeks. This is not optional groundwork.
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