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Opening a guesthouse.. advice?

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  • Opening a guesthouse.. advice?


    I am looking to open a guesthouse in the area of canggu or just a little south of that. I am partnering with a Indonesian national, so the property and loans would be in their name. Can anyone shoot me advice on this subject? Have you seen anything that has not worked? Any ideas on what is needed in the area?


  • #2
    Sorry , I don't have any practical experience in having a business , but I learned a little about :

    If you want to officially be one of the owners , you must set up a relatively big company of the "PT PMA" type (see details in the link below) . By owning the PT PMA you are eligible to legally work in it (probably as Director or similar) and get an one year KITAS , and in the 4th KITAS you can apply for a 5 years KITAP .

    If your name does not appear in the company , then you cannot work in it , neither get a KITAS sponsored by it , unless you are eligible for a Work Permit and work as a normal employee (but you would not be allowed to stay , maybe more than 3 years, in a same job there and it would be almost impossible to get a KITAP this way) .

    http://www.livinginindonesiaforum.or...311#post254311 (Business/PMA : references , agents ) (about working legally in Indonesia)


    • #3
      Partnerships that are not structured with local partners often through contracts and not trough share ownership often have issues because your legal position is not strong.
      If you give more detail maybe you can get more specific advice.

      You can work in the company as a director (president director or one of the board members). To be a director in local PT, the company has to have sufficient paid in capital.
      There is no written rule by Ministry of Manpower for the amount of paid-in capital for issuing a work permit to a foreign director, but from personal experience, 600 million paid in capital/2,4 billion registered capital was sufficient.
      The company can sponsor you for KITAS and later for KITAP.
      There is no limit for staying in a board of directors.


      • #4
        be aware bali is overbuilt with accommodation of every type , room rates are low and falling as is occupancy , a recipe to lose money .


        • #5
          Simple advice.  Unless you have an extremely good relationship with your partner that you feel will last the test of time, forget about it.  In the past six years I have known many who have been totally ripped off by "partners."  One a very estute European man who is very successful on Bali and took a huge loss in Yogyakarta with an Indonesian partner...this after living in Indonesia for over 30 it can happen to anyone.