Smart Way To Start Your Business In Lombok

As one of the most popular vacation spots in Indonesia, Lombok is known amongs the international community for the incredible beauty of its nature and the warm hospitality of its people. Therefore, it is of no surprise that the tourism sector is the fastest developing sector in Lombok, which in turn causes what we call “a snowball effect” to business in other sectors in the island, such as the trading and industrial sector. With all its untapped potential in both the natural and human resources, Lombok is a hotbed for both local and foreign investors (Foreign Direct Investment/FDI) to establish their business.

One of the most important aspect in establishing a business is of course, the Legal Aspect. Awareness of laws and regulations that govern certain important business sectors in a country helps investors to mitigate business risk, and that also applies for business in Lombok. Therefore, SMART Consulting will explain to you in a systematic way, how to establish a company in Lombok, Indonesia.

Lombok Map


Prior to establishing their business, all investors must first determine which field of business they want to enter. Is it tourism? Industry? Trading? After determining such field, the next step will be determining the business entity most suitable to perform business activities in the field. In Lombok, which is located in Indonesia, the laws and regulations recognize several forms of business entities, including Limited Liability Company (Perseroan Terbatas/PT) and Limited Partnership business entities (Persekutuan Komanditer/CV).

Each decision by the investors in determining their business scope in Indonesia carries different legal implications. For example, some business sectors require the establishment of a legal entity for investors to start their business. In Indonesia, PT is recognized as a legal entity, while CV is not. Furthermore, there are other requirements concerning capital that must be fulfilled, and such requirements differs in each different business sectors. The establishment of a PT in Indonesia must fulfill a minimum quota of capital, while a CV does not have such requirements.


We understand very well that the establishment of a company is connected with the permit to perform the business itself. Without the business license, the establishment of a company is considered worthless.

Therefore, we will share from our experiences in dealing with Our Clients which are located in Lombok, including the business license requirements that must be fulfilled in accordance with each type of business.

In general, in order to establish a company in Lombok, investors must ensure that their company has obtained the following permits:

  1. Location Permit / Izin Lokasi (ILOK);
  2. Building Permit / Izin Mendirikan Bangunan (IMB);
  3. Certificate of Company Registration / Tanda Daftar Perusahaan (TDP);
  4. Certificate of  Warehouse Registration / Tanda Daftar Gudang;
  5. Certificate of Industry Registration / Tanda Daftar Industri (TDI);
  6. Place of Business License / Surat Izin Tempat Usaha (SITU);
  7. Hotel License / Izin Hotel dan Penginapan;
  8. Tourism Services Business License / Izin Usaha Jasa Pariwisata (IUJP);
  9. Restaurant License Izin Usaha Rumah Makan;
  10. Tourism Business License / Izin Usaha Pariwisata;
  11. Road Transportation License / Izin Bidang Angkutan Jalan;
  12. Land Use Permit / Izin Pemanfaatan Penggunaan Tanah;
  13. Dangerous Waste Storage Permit / Izin Tempat Penyimpanan Sementara Limbah B3; and
  14. Waste Permit / Izin Pembuangan Air Limbah.



SMART Legal Consulting has extensive experience in helping investors set up a company in Indonesia. Our connections with the local government in Lombok will make the process of obtaining the permits and/or licenses for your business more effective and efficient.

If you need immediate assistance, please contact the SMART Help Desk at:


H: +62821-1234-1235

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