Costs for opening restaurant and B&B in Labuan Bajo?

Hi everyone.
I'm from Italy and I have been in Indonesia twice.
I have travelled a lot around the world and after my experiences I'm thinking to open my own business in Indonesia with a few friends.
We know that there are inconvenient law, a foreigners can't buy lands.
I have many question about opening a restaurant(ground floor) and B&B (first floor)in Labuan Bajo.

How much money does a properties of 100/120mq cost in Labuan Bajo in Street Soekarno Hatta(in the city centre)?
How much does it cost to demolish the old structure and building a two floors building? (the restaurant in the ground floor and the B&B in the first floor)
Anyone know a good construction company (or local people) in Labuan Bajo?
They provides also for the indoor plumbing and electrical system during the building?
How I can know how many floors I can build? Are there any particular rules about it?
Can I assign the 100% of restaurant and B&B properties to myself? (I know the last law of 2016/17 permits to a foreign to have the 100% of restaurant properties but i  couldn't  find info about the B&B)
How much do the restaurant and B&B permit cost?
How much does it cost to equip a kitchen restaurant of about 20/25 tables and where I can find the providers who sell professional kitchens? (I couldn't find any information online about the cost's in Indonesia)
How can I organize myself with the food providers? (When I was in Labuan Bajo any expat told me that the nearest food provider are in Bali and I would like to know how to find a good one and how much is the shipping.)


Thank you for reading and I really hope that someone will answer me.
I'm sorry for my English, thank you for your patience.

I suggest you pay to have a feasibility study made before starting the business.

I also think you should employ the services of an architect which will also give you an idea of the cost. An architect might cost you Rp10 million to Rp30 million or more for the drawings but they will charge highly for building the project so consider using a contractor directly by inviting at least three or four to quote you the cost of building.

Are you all foreigners or do you have local partners? Do you know the regulations for investing in Indonesia? Building permission can take more than a year unless you have a contact at the right department. You should know that it won't be easy. Your plans can easily get rejected so contacts are important.

To be honest, it sounds as if this is a dream but that you have no idea or experience at all and you are not at all familiar with the amount of paper work and difficulty that will be involved. Perhaps you can indicate how much investment you and your friends are prepared to make for this project? You already know that only Indonesians can buy land right?

Hi, I'm so sorry if you think that.
One of us is an architect.
I know the regolamentation but i'm not sure about a copule of info.
We are all foreigner but it's not a problem. (It's easy to find a local, ).
It's doesnt exist an easy activity.
I'm From Italy and i have a company here and in morocco. (Your name is arabic so you know it's harder to make business in arabic country) and probably you don't know how many paper and document you need to do everything in Italy.
To be honest I don't want to put the budget here because my mail it's full of expat that try to rob me or asking money to getting information.
One of my partner have already an activity in Thailand (koh samui) and one of my best friend have a restaurant in south Africa (Unkomas a city bear Durban).
I'm so grateful if you can answer to my question in the first post.
I want to have information also of how I can have fast permission (Who I have to pay for that) and thing like that.
Thank you so much.

Foreigner can't legally buy land except under very strict regulations, and you can't run a legal business without more very strict regulations being followed.
Apart from anything else, you'll never get legal visas and you have no hope of work permits or any other documents you'll need to open a business.
Assuming the local government officers are doing their job properly, they'll reject applications for anything if you don't have the correct immigration documents, and are very likely to report you to immigration for arrest.
As for any land you buy illegally, that would be taken by the government with a 100% loss for you.
You won't get so much as a local ID card, and risk arrest if you try.

Sorry but i want to know the cost, please dont get off topic.

Dreamer993 wrote:

Sorry but i want to know the cost, please dont get off topic.


I suggest you take Fred's advice seriously.

Before you worry about costs, there is a formidable immigration process you will have to go through as a foreigner,with no guarantee of success.

In all honesty, the OP is not asking about immigration and visa, suggesting that he may already have that worked out, but that is not our concern.

He is asking specifically about the building and the future business. But as per the rules of this forum we cannot publicly give advice about how to fast-track an application with a payment because it is not legal.

I see a lot of posts like this. I am more familiar with Malaysia but this is usually how it goes.

1..foreigner invests heavily. Rules are "circumnavigated" by methods we cant discuss. Foreigner pays x3 going rate for building work

2.. when the business is running well suddenly the cost of business shoots up. More "fees to pay". They increase rapidly until you have to sell at 95% loss to a local or

3..You are arrested. Business is locked up. Its confiscated and sold at 100% loss via auction to a local who reopens business straight - sometime next day by some miracle.

Often the new owner seems to be a good friend of local head of police. Well its good no network isnt it? Trying complaining? Try stopping a bullet....

Long term expat friend of mine also had leases tripled over might despite legal agreement for fixed lease, sudden loss of business licence and weirdly a local gets one for your business the next day with a new lease outbofnthe blue and all sorts. The funniest was a whole bunch of bar owners in KL who opened bars in Bangsar years ago and suddenly all bars lost their licences. Several didnt open at all. All promised no problems by agents.

Morroco and ME is a walk in the park as locals happy to take the "fees" and see you as a cash cow. In SE Asia they want the whole cow even if they end up killing it.

Nemodot wrote:

I see a lot of posts like this. I am more familiar with Malaysia but this is usually how it goes.

1..foreigner invests heavily. Rules are "circumnavigated" by methods we cant discuss. Foreigner pays x3 going rate for building work. All promised no problems by agents.

Morroco and ME is a walk in the park as locals happy to take the "fees" and see you as a cash cow. In SE Asia they want the whole cow even if they end up killing it.


Sounds roughly correct, but different people get the land.

......