INVESTOR KITAS in Indonesia
The Investor KITAS (Kartu Izin Tinggal Terbatas) is a specific type of limited stay permit in Indonesia designed for foreign investors who intend to invest in and conduct business activities within the country. This permit allows foreign investors to legally reside and operate their business in Indonesia for a specified duration.
What are the benefits of choosing an Investor KITAS instead of a Working KITAS?
Good news for foreign investors residing in Indonesia! Following regulatory updates by BKPM in 2019, investors now enjoy additional benefits. Previously, investors were required to obtain a Working KITAS (Index code 312) and a work permit, incurring a mandatory annual cost of $1,200.
However, these amendments now exempt Investor KITAS holders from the need for work permits. This translates to potential savings of $100 per month or $1,200 per year in visa-related expenses.
How much money can someone save by choosing an Investor KITAS instead of a Working KITAS?
If you qualify for an Investor KITAS, you can realize significant savings. The Investor KITAS is available for either 1-year or 2-year validity periods. For instance, choosing a 2-year Investor KITAS can save you $2,400 over that time. This is because you will not be required to contribute to the non-compulsory DPKK fund and will also avoid annual KITAS processing and associated costs.
Who is eligible to apply for an Investor KITAS?
To be eligible for an Investor KITAS, your company’s authorized capital must exceed 10 billion rupiah, with at least 25% of this capital fully paid up. For companies established before 2009, a lower capital investment may be possible. Additionally, as an investor, you should possess a minimum of 1 billion rupiah worth of personal shares invested in a PMA (Penanaman Modal Asing – Foreign Investment Company) and hold the position of either Director or Commissioner.
Even if you are an investor without an official position in a PMA company but hold personal shares valued at over IDR 1,125,000,000 (one billion, one hundred and twenty-five million rupiah), you can still apply for an Investor KITAS, although work privileges are not permitted in this case.
Can you be employed while holding an Investor KITAS?
If you are officially listed as a Director within the company, you are permitted to work while holding an Investor KITAS. This is stipulated in the Manpower regulation ‘Permenaker No. 10 Year 2018 on Article 10, Article 22, and Article 26 point C.’
However, if you are listed as a Commissioner, you are not allowed to engage in employment. Nevertheless, you can still benefit from a stay permit with a maximum validity of 2 years. If you, as a Commissioner, wish to have work privileges, you will need to own a minimum of IDR 1,125,000,000 (one billion, one hundred and twenty-five million rupiah) worth of shares in the company.
Is it possible for a company to request multiple Investor KITAS?
Yes, absolutely! A single company is allowed to apply for more than one Investor KITAS, provided that the shares owned by the foreign individuals are clearly documented in the Company’s Deed of Establishment and amount to a minimum of 1 Billion IDR per applicant.
Can the Investor KITAS cover visas for family members?
Yes, the Investor KITAS can indeed be extended to cover visas for your dependents.
Which documents are needed to start the process for an Investor KITAS?
To begin the Investor KITAS application process, you will typically need the following documents:
- Investor’s passport: Ensure it has a validity of at least 18 months for a 1-year KITAS application.
- Company’s deed of establishment and amendments (if applicable)
- Ratification from the Ministry of Law and Human Rights (MoLHR) of the company sponsor (SK Kehakiman Pendirian Perusahaan dan Perubahannya) if applicable
- Tax Registration Number (NPWP) of the company sponsor
- Business Domicile
- Business License
- Business Identification Number (NIB)
- ID Card (KTP) and Tax ID (NPWP) of the Indonesian Director of the company sponsor (if required)