Your Guide to the Indonesia Investor Visa Program

Planning to invest in and reside in Indonesia? The Indonesia investor visa, or Investor KITAS, may be your solution. It offers residency without the usual work permit requirements and includes other significant advantages. This article lays out what you need to know about the Investor KITAS, covering its benefits, eligibility, and application procedure. Get ready to dive into the essentials of securing your investor visa in Indonesia.

Key Takeaways

• The Indonesia Investor KITAS is a visa program targeting foreign shareholders who have invested over IDR 1.125 billion in Indonesian companies, aiming to simplify their residency and management of investment ventures in Indonesia.
• Eligibility for the Investor KITAS hinges on meeting investment thresholds such as a minimum investment of IDR 1.25 billion for most investors or IDR 1 billion for investors serving as directors, and the sponsor company must meet specific requirements, including having all necessary licenses via the OSS system.
• The Investor KITAS offers a streamlined application process for foreign investors, provides multiple entry benefits, and is renewable, which can be more advantageous compared to other visas as it exempts holders from work permit fees and DKP-TKA contributions.

Understanding the Indonesia Investor KITAS

Indonesia has devised a strategy to attract foreign investment by introducing the Investor KITAS, a special category of visa offering residence permits for foreign investors looking to establish or invest in Indonesian businesses. So, what makes it special? Specifically designed for business investors, the Investor KITAS facilitates their residency in Indonesia, enabling them to manage their investment ventures. It enables them to actively engage in investment-related activities while living in the country.

This approach by the Indonesian government is not just about attracting investors for an Indonesian company; it’s about making their journey hassle-free. The immigration team offers comprehensive assistance throughout the process, ensuring that you, as an investor, can focus on what matters—your business.

You might be wondering about the implications and benefits of holding an Investor KITAS. Let’s delve into the definition and purpose of the Investor KITAS, followed by the key benefits it offers.

Definition and Purpose of Investor KITAS

Foreign shareholders in Indonesian companies are the target audience for the Investor KITAS, a stay permit. It allows them to legally reside in Indonesia and oversee their business activities in the country. It’s not just about having a share in a company; it's about having a significant share. Foreigners who have invested over IDR 1.125 billion in a PT PMA in Indonesia through paid-up shares are eligible for the Investor KITAS. This provides a pathway for them to reside in the country and pursue their business interests.

The purpose of an Investor KITAS is simple yet impactful. It aims to facilitate business investors’ stays and activities in Indonesia. Beyond facilitating your stay, the Investor KITAS comes with numerous advantages.

Key Benefits of Holding an Investor KITAS

The Investor KITAS is not just a visa; it’s a package of benefits tailored for business investors. This visa, specifically designed for them, offers cost benefits such as ease of application and a waiver of the work permit fee, making it a cost-effective visa for overseeing business. But the benefits do not stop at cost-effectiveness.

If you’re planning to bring your family along, the Investor KITAS has got you covered. It allows you to:

• Support your family’s stay in Indonesia with dependent visas
• For directors holding an Investor KITAS, it grants permission to work in Indonesia, provided their activities align with the company’s business objectives and do not include daily operational tasks
• For those who manage investments across borders, the Investor KITAS allows multiple entries into Indonesia, aligning with the needs of business travelers.

Eligibility Criteria for the Investor Visa

Given the numerous benefits associated with the Investor KITAS, you may start questioning your eligibility. Eligibility for an Investor KITAS requires a minimum investment in company shares, commonly set at IDR 1.25 billion. However, for investors holding the position of director, the minimum investment requirement is reduced to IDR 1 billion.

Eligibility extends beyond just the investment amount. The company’s authorized capital should surpass IDR 10 billion with a minimum of 25% paid up. Furthermore, a personal minimum investment of IDR 1 billion in a PMA company is required for investor eligibility. Furthermore, a foreign national must be one of at least two founders to open a PT PMA company in Indonesia to be eligible for an Investor KITAS.

With the eligibility criteria set, let’s dive deeper into the investment thresholds and the sponsor company requirements.

Investment Thresholds

The investment thresholds for the Investor KITAS vary depending on the investor’s role in the company. Under the new regulation, foreign investors are required to invest a minimum of IDR 10 billion to qualify for an investor stay permit and present company bank statements from the last two months. Existing foreign investors must adjust to the new regulations by increasing their investments to maintain their stay permit status.

Investors who do not meet the new minimum investment requirement may have to apply for different types of permits according to prevailing laws and regulations. Investors not serving as directors or commissioners in the company must hold a minimum of IDR 1.125 billion in shares for investor visa eligibility. A PT PMA company is required to have a minimum capital of IDR 10 billion, of which the foreign investor must own more than IDR 1.125 billion in shares to be eligible for an Investor KITAS.

However, investors fulfilling the roles of director or commissioner in a company are subject to a reduced minimum investment threshold of IDR 1 billion, which is one of the investment requirements.

Sponsor Company Requirements

In addition to the investment thresholds, there are certain requirements that the sponsoring company must meet. The Indonesian government must register and recognize a company in order to sponsor an investor visa, which requires a business registration number (NIB). For existing businesses to be eligible to sponsor an Investment KITAS, they must have obtained all necessary licenses through the Online Single Submission (OSS) system.

A newly established company can sponsor an Investment KITAS as soon as it has been issued its business registration number (NIB) and business licenses. Besides, the sponsoring company must provide equal opportunities for Indonesians to work, especially when the Investor KITAS holder is also serving as a director.

Steps to Obtain the Investor Visa

Having understood what the Investor KITAS is, its benefits, and eligibility criteria, the next logical question might be, ‘How do I obtain it?’. The Investor KITAS application process involves:

1. Preparing all required documents, such as a signed application letter and company registration documents.
2. Submitting the application to the relevant authorities.
3. Waiting for the processing time, which is approximately 1.5 to 2 months.

Once the VITAS is issued within 60 days, the investor must enter Indonesia within the following 90 days. After arriving in Indonesia, the investor has approximately two weeks (14 working days) to convert the VITAS into an Investor KITAS. Let’s delve deeper into the steps to obtain the Investor KITAS.

Preparing Necessary Documents

The first step in obtaining the Investor KITAS is preparing the necessary documents. A signed application letter is essential for the Investor KITAS application. The passport used must have the passport number registered in OSS where the investor is listed as a shareholder, with the passport having a validity of at least 6 months and at least 4 empty pages.

In addition to the signed application letter and passport, company registration documents are an essential part of the documents required for the visa application. Applicants also need to provide a recent photograph measuring 3x4cm against a white background, with the applicant wearing a collared shirt.

Application Submission and Follow-up

With the necessary documents in hand, it’s time for application submission. The application for a VITAS, which is the initial step towards obtaining an Investor KITAS, is submitted to an Indonesian Embassy abroad as initiated through the Directorate General in Indonesia. After the successful application, the VITAS will be issued within 60 days. This process follows the completion of the necessary requirements..

After arriving in Indonesia with a VITAS, the process to convert it into an Investor KITAS typically takes about 10 to 14 working days. Applicants must enter Indonesia within 90 days after the VITAS is issued to remain eligible for the Investor KITAS. It’s also important for applicants to be prepared for a potential interview as part of the investor visa application process with the Indonesian immigration authorities.

Applicants should be informed about the current processing times for investor visas, including e visa, and plan to apply well in advance of their intended travel dates.

The Role of Business Registration and Tax ID

Alongside the eligibility criteria and application process, business registration and Tax ID (NPWP) significantly influence the investor visa application process. A business registration number (NIB) along with the necessary business licenses obtained through the Online Single Submission (OSS) system enables a newly established company to sponsor an Investor KITAS.

To comply with the investor visa application, companies must provide the following documents:

• Ministry decree for Legalization of the Articles of Association
• NIB (company tax ID)
• Other relevant documents ensuring the company is registered and operational

The necessity of having a Tax ID (NPWP) is implicit in the business licensing process in Indonesia and serves to establish the credibility of the business with Indonesian immigration authorities.

Business registration and having a Tax ID (NPWP) are integral to streamlining the investor visa application process and maintaining the integrity of business operations in Indonesia.

Long-Term Stay Permit and Multiple Entries

A major perk of the Investor KITAS is its provision for a long-term stay permit and multiple entries. The Investor KITAS is renewable and offers the benefit of multiple entries, allowing investors to enter and exit Indonesia as needed. Once issued, the VITAS or pre-approved visa must be converted into an Investor KITAS within 90 days by entering Indonesia.

Multiple entry permits associated with the Investor KITAS offer the following benefits:

• Simplify travel plans by eliminating the need for a separate re-entry permit
• Enhance travel flexibility
• The cost of obtaining the Investor KITAS includes the price for a multiple entry permit, adding value and convenience.

Comparing Investor Visa with Other Visas

Although the Investor KITAS is custom-made for foreign investors, a comparison with other visa types is worthwhile. The Investor KITAS is uniquely beneficial for foreign investors as it allows them to participate in managing investments without the need for a work permit and exempts them from monthly DKP-TKA contributions.

Unlike the Investor KITAS, which is tailored for active business involvement, the Retirement KITAS is designed for retirees with no work intentions and the Family Visas cater to those with familial ties to Indonesians. Second Home KITAS offers a longer-term stay of 5-10 years for retirees and investors, presenting an alternative to the Investor KITAS which may have different validity periods and requirements for business activity.

Remote workers and digital nomads currently utilize the B211A visa due to the lack of a specific remote work visa, whereas the Investor KITAS could provide a more formalized path for those engaging in investment activities in Indonesia.

Legal Amendments and Updates on Investor Visa Policies

Like all countries, Indonesia’s investor visa policies, including the golden visa, may undergo legal amendments and updates. On August 22, 2023, Indonesia’s Ministry of Law and Human Rights issued Regulation No. 22 of 2023, revising visa and stay permit regulations to foster investment and economic expansion. Indonesia has approved a new digital nomad year visa designed for remote workers, which permits a stay of up to five years without the requirement to pay taxes on income sourced outside of Indonesia.

The specifics of the digital nomad visa are currently being refined by the Indonesian government, focusing on the criteria and advantages that it will provide. The Investor KITAS underwent substantial reforms in 2019, bringing about a more streamlined application process and cost reductions for applicants. It’s essential for investors to stay informed of the frequent changes in Indonesian immigration laws and regulations to adjust accordingly.

Navigating the Directorate General of Immigration

Understanding the workings of the Directorate General of Immigration is a vital component of the investor visa application process. The sponsor company must register for a visa online account with the Directorate General of Immigration to process the investor visa application. Accurate and consistent document preparation is recommended for a smooth investor visa application process.

The ‘Tanya Jawab’ online system provided by the Directorate General of Immigration offers assistance with visa and immigration-related inquiries. Applicants from certain nationalities may experience more complex visa processes due to diplomatic relations with Indonesia.

Additional Considerations for Foreign Investors

Despite the Investor KITAS paving the way for foreign investors, there are other factors that warrant attention. Foreign investors in Indonesia must navigate complex regulations regarding foreign control and ownership, especially in strategic sectors like telecommunications, healthcare, and natural resources. Investors may encounter legal and regulatory uncertainty tied to economic nationalism and protectionism, adding complications to the investment landscape.

There are expectations for foreign investors to partner with Indonesian companies and to adhere to local manufacturing or service procurement requirements. The Indonesian legal system approaches dispute resolution through arbitration or judiciary, and there can be external influences on this process. Seeking advice from professionals experienced in Indonesian immigration could prove beneficial, particularly for complex investor visa applications.

The Future of Remote Workers and Investor Visas

The outlook for remote workers and investor visas appears promising. Over 25 countries have launched digital nomad visas, recognizing the growing trend of remote work and adapting their visa policies accordingly. The digital nomad visa will differ from tourist or business visas by recognizing the needs of remote workers who travel and work simultaneously, providing more legal clarity and security.

The cost of living in Indonesia is relatively low. Some of the reasons why it is an enticing destination for digital nomads include:

• attractive locales
• available coworking spaces
• diverse cuisine
• ease of visa application processes

This opens up a new window of opportunities for remote workers and investors alike.

Summary

In conclusion, the Investor KITAS is a golden ticket for foreign investors looking to tap into the thriving Indonesian market. Its unique benefits, eligibility criteria, and application process make it an attractive option for investors. However, it’s crucial to stay updated with the latest legal amendments and visa policies and navigate the Directorate General of Immigration effectively.

As the world moves towards a more remote working environment, the future of investor visas looks promising. With the introduction of digital nomad visas and other changes, Indonesia continues to make strides in attracting foreign investment. So, are you ready to unlock your potential with the Investor KITAS?

Frequently Asked Questions

How much is the investor visa in Indonesia?

The Investor KITAS in Indonesia costs 15 Million IDR for 1 year and 18 Million IDR for 2 years in Jakarta.

How can I get permanent residency in Indonesia?

To obtain permanent residency in Indonesia, you can apply for the KITAP (Kartu Izin Tinggal Tetap) after living in Indonesia for five years on an ITAS, or after two years if you are married to an Indonesian national.

What is an Investor KITAS?

An Investor KITAS is a special stay permit for foreign shareholders in an Indonesian company, allowing them to live in Indonesia and oversee their investment activities.

What are the eligibility criteria for obtaining an Investor KITAS?

To be eligible for an Investor KITAS, you need to make a minimum investment in company shares, usually set at IDR 1.25 billion, and meet the sponsor company's requirements.

How does the application process for the Investor KITAS work?

The Investor KITAS application process involves preparing required documents, submitting the application, and following up. After the VITAS is issued within 60 days, the investor must enter Indonesia within the following 90 days to convert the VITAS into an Investor KITAS.

‍