Bali, the iconic Indonesian island, is renowned for its vibrant nightlife and thriving tourism industry.
For foreign investors seeking to tap into this lucrative market, opening a discotheque or nightclub presents an attractive opportunity.
Under the Indonesian Standard Industrial Classification (KBLI) code 93294, foreign direct investment firms can open entertainment venues that cater to both locals and international visitors.
This classification encompasses businesses that provide facilities equipped with lighting and sound systems for music and dancing, along with food and beverage services.
In this blog post, we’ll explore the process of investing in Bali’s nightlife scene and opening a successful discotheque business as a foreign investor.
Overview
Diskotek under KBLI Code 93294 encompasses businesses that provide venues equipped with lighting and sound systems for listening to music or dancing, along with food and beverage services.
These establishments form a core part of the entertainment and nightlife industry, catering to both local patrons and tourists seeking a vibrant night out.
Legal Basis
The operation of discotheques in Indonesia is regulated under the “Peraturan Menteri Pariwisata Dan Ekonomi Kreatif/Kepala Badan Pariwisata Dan Ekonomi Kreatif Republik Indonesia Nomor 7 Tahun 2021.”
This regulation outlines the framework and guidelines for establishing and running entertainment venues in Indonesia, ensuring that they meet specific legal and operational standards.
Type of License
The standard business license required for operating a discotheque is the “Perizinan Berusaha” which includes a Standard Certificate.
This certification ensures that the business meets all necessary conditions related to safety, health, and operational standards.
Coverage of Service
The services covered under this business include the provision of a dance area with adequate sound and lighting, as well as the sale and service of food and beverages.
The goal is to create a safe, enjoyable, and immersive entertainment environment.
Business Scale, Land Area, and Risk Level
The discotheque business is categorized as a large-scale enterprise, reflecting the significant investment and operational scope required.
While there are no specific regulations concerning the minimum land area needed for such venues, the risk level associated with operating a discotheque is rated as medium-high.
This rating is due to the complexities involved in managing a vibrant nightlife spot, which includes ensuring high standards of safety and security for patrons and staff.
Authorities Granting Licenses
The licensing authority for discotheques under KBLI Code 93294 is the Ministry of Tourism and Creative Economy/Head of the Tourism and Creative Economy Agency.
This body is responsible for issuing the necessary business licenses and ensuring compliance with the established regulations.
Requirements and Obligations for Business Licensing
For a discotheque under KBLI Code 93294, obtaining a business license involves specific requirements and obligations.
Businesses must adhere to environmental management and monitoring plans, known as UKL-UPL, and are given a one-year timeframe to meet these requirements.
Additionally, they must secure a Standard Business Certificate and a Health Suitability Certificate to ensure compliance with health and safety standards.
The timeframe for fulfilling these obligations is also set at one year, underscoring the importance of regulatory compliance in maintaining a safe and legal entertainment venue.
Frequently Asked Questions
- What types of services do discotheques in Bali typically offer?
Bali's discotheques provide a vibrant mix of services, including state-of-the-art lighting and sound systems for dancing and music enjoyment, along with comprehensive food and beverage offerings. These services cater to both local and international guests looking for a dynamic nightlife experience.
- What are the risk levels associated with operating a discotheque in Bali?
The risk level for operating a discotheque in Bali is categorized as medium-high due to the operational complexities and public safety considerations involved in managing a nightlife venue.
- How can foreign investors benefit from opening a discotheque in Bali?
Foreign investors can tap into Bali's thriving tourism and entertainment industry, which offers lucrative opportunities due to the island's popularity as a global nightlife destination. The supportive regulatory framework for foreign direct investment also facilitates the establishment of such businesses.
- What ongoing obligations must discotheque owners fulfill to maintain their business license in Bali?
Discotheque owners must continuously adhere to the conditions of their business license, including maintaining environmental, health, and safety standards, as outlined in their initial certification and regulatory requirements. Regular compliance checks and updates to certifications may be necessary to ensure ongoing operations.
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