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    Bali Visa > Blog > Company Establishment > Starting a Karaoke Business for PT PMA in Bali, Indonesia: A Complete Guide
How to Start a Karaoke Business in Bali, Indonesia (PT PMA)
May 18, 2024

Starting a Karaoke Business for PT PMA in Bali, Indonesia: A Complete Guide

  • By Syal
  • Company Establishment

Are you looking to start a karaoke entertainment business in Bali, Indonesia? 

If you’re a PT PMA (Perseroan Terbatas Penanaman Modal Asing) and passionate about music, singing, and hospitality, this guide is for you. 

We’ll walk you through the process of starting your karaoke business under the KBLI code 93292, which covers businesses that provide a place and facilities for karaoke as their main focus, with the option to offer food and beverage services. 

Get ready to embark on a journey that combines your love for entertainment and entrepreneurship in the vibrant island of Bali. 

Indonesia’s regulatory framework ensures that your karaoke business operates smoothly, making Bali an ideal spot to start your entertainment journey.

Table of Contents

  • Overview
  • Legal basis
  • Type of License
  • Coverage of Service
  • Business Scale, Land Area, and Risk Level
  • Authorities Granting Licenses
  • Requirements and Obligations for Business Licensing
  • Resource
  • Frequently Asked Questions

Overview

The KBLI Code 93292 covers businesses that provide spaces and facilities mainly for karaoke. 

These establishments may also offer food and beverage services, creating a comprehensive entertainment experience. 

This classification is crucial for entrepreneurs aiming to establish a karaoke business as their primary venture in Indonesia, particularly in the tourist-favored locale of Bali.

Legal Basis

The legal framework for operating a karaoke entertainment business under KBLI Code 93292 is outlined in the regulation from the Minister of Tourism and Creative Economy / Head of the Tourism and Creative Economy Agency of the Republic of Indonesia Number 4 of 2021. 

This regulation sets the foundational legal requirements and standards for such enterprises.

Type of License

Businesses operating under KBLI Code 93292 require a Standard Business Certificate (Sertifikat Standar) as part of their business licensing. 

This certification ensures that the business meets certain standards of operation and service quality, crucial for maintaining the integrity and appeal of the entertainment and hospitality sectors.

Coverage of Service

The service coverage for businesses under KBLI Code 93292 includes the provision of karaoke facilities and potentially, ancillary services such as food and beverages, enhancing the overall customer experience.

Business Scale, Land Area, and Risk Level

The classification of a karaoke business under KBLI Code 93292 is as a large enterprise, which is significant for potential investors or entrepreneurs looking to enter the market. 

There is no specified requirement regarding the land area for such businesses, giving flexibility in choosing a location that best fits the business model and target audience. 

The associated risk level is categorized as medium-low, suggesting that while some oversight is necessary to ensure compliance with regulations, the complexities are not as high as those in industries with greater inherent risks.

Authorities Granting Licenses

The authority to grant licenses for a karaoke business falls under the purview of the Minister or Head of the Tourism and Creative Economy Agency. 

This centralization aims to ensure that standards are uniformly applied and maintained across the sector.

Requirements and Obligations for Business Licensing

To obtain and maintain a business license, karaoke business operators must secure an Environmental Management Effort and Environmental Monitoring Effort Certificate (SPPL) and meet the standards set out in the Standard Business Certificate. 

These requirements are designed to ensure that businesses adhere to environmental and operational standards. 

Business owners have one year from the time of licensing to fulfill these obligations.

Resources:

  • Online Single Submission System (OSS): The official platform for business licensing in Indonesia. 
  • Indonesia Investment Coordinating Board (BKPM)
  • Indonesian Minister of Public Works and Housing
  • Bizindo.com: KBLI 2020 English in English (with Interactive Table) 

Frequently Asked Questions

  • What specific activities are covered under KBLI Code 93292 for a karaoke business?

    KBLI Code 93292 specifically covers the operation of businesses that provide spaces and facilities primarily for karaoke. This can include additional services such as food and beverage offerings, which complement the karaoke experience.

  • What is the duration and validity of the business license for a karaoke operation in Bali?

    The Standard Business Certificate, required for operating a karaoke business, does not have a specified expiration or renewal term mentioned in the provided regulations. However, ongoing compliance with health and safety standards is mandatory.

  • What flexibility is there in choosing a location for a karaoke business in Bali?

    There is considerable flexibility in choosing a location as there are no specific regulations concerning the land area required for a karaoke business. This allows entrepreneurs to select a location based on their business model and target demographic.

  • What are the ongoing obligations after obtaining a karaoke business license?

    After obtaining a license, the business must fulfill obligations such as maintaining a health suitability certificate and upholding the standards outlined in the Standard Business Certificate. These obligations must be met within one year to ensure continued compliance.

  • How can a karaoke business in Bali enhance its customer experience?

    A karaoke business can enhance its customer experience by providing high-quality sound systems, a diverse music library, comfortable and private singing booths, and excellent food and beverage services. Additionally, hosting themed nights and events can attract a broader audience.

Contact us for karaoke services in Bali, Indonesia.

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Syal

Syal is specialist in Real Estate and majored in Law at Universitas Indonesia (UI) and holds a legal qualification. She has been blogging for 5 years and proficient in English, visit @syalsaadrn for business inquiries.

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