The process of getting a visa in Indonesia, particularly for new business owners, has often been intimidating due to the high cost of work permits. However, in 2019, the Indonesian Government introduced the Investor Visa or Investor KITAS, making obtaining it dramatically simpler and offering substantial financial savings. The Investor KITAS (Kartu Izin Tinggal Terbatas) is a special residence permit designed for foreign investors who want to set up or invest in business activities (PT PMA) in Indonesia. This program is part of the Indonesian government's efforts to attract foreign investment and promote economic growth.
What is the Investor KITAS?
The Investor Visa/Investor KITAS is a visa specifically created as one of the investment requirements in Indonesia, allowing foreign companies to live and run their businesses in the country with ease.
Although the Investor KITAS has been implemented since 2011, based on Law Number 6 of 2011 and subsequently amended in 2018, significant changes were implemented in 2019 to make the application process easier. Since then, this type of KITAS has become one of the most popular visas to hold in Indonesia.
What are the advantages of choosing an Investor KITAS over a Working KITAS?
According to the amendments made by BKPM to Presidential decree BKPM no. 5/2019, Indonesia offers additional benefits to Investors staying in the country. Previously, investors were required to apply for a Working KITAS (Index code 312) and a working permit, which cost $1,200 per year as a mandatory fund. However, with the new amendment, investors holding an Investor KITAS no longer need a working permit, resulting in a reduction of $100 per month or $1,200 per year in visa expenses.
Who can apply for an Investor KITAS?
Before obtaining an Investor KITAS, the company's authorized capital must exceed 10 billion rupiah, with a minimum of 25% of the authorized capital paid up. For companies established before 2009, lower capital investment is possible. Additionally, an investor should have a minimum value of 1 billion rupiah in personal shares invested in a PMA company and hold the title of either Director or Commissioner.
If you hold no position in a company in Indonesia but have personal shares worth over IDR 1,125,000,000, you are also eligible to apply for an Investor KITAS, although work is not permitted.
Can you work using an Investor KITAS?
As a foreign business investor in Indonesia holding the position of Director, you are allowed to work while holding an Investor KITAS. This is stipulated in the Manpower regulation 'Permenaker No. 10 of the Year 2018 under Article 10, Article 22, and Article 26 point C.
However, if you invest in a company and hold a Commissioner position, you are not allowed to work. You can still obtain a stay permit for a maximum of two years. If you, as a Commissioner, wish to work, you must have a minimum share ownership of IDR 1,125,000,000 in the company.
