investor kitas indonesia

Everything You Need to Know about Investor KITAS in Indonesia

  • InCorp Editorial Team
  • 13 June 2019
  • 4 minutes reading time

Though the US-China trade war has slowed down the global economy and impacted the economy in Indonesia, the investment outlook in Indonesia in 2019 remains positive. It is estimated that Indonesia’s economy will grow at a rapid pace, with a growth rate of 5.3-5.4% in 2020.

Furthermore, the positive outlook is evidenced by investors participating in major projects in Indonesia since the first quarter of 2019.

There is no denying that the investment climate remains great for foreign investors. One of the significant contributors is the government’s efforts to simplify the investment process through various policy changes, including the Ministry of Manpower Regulation No.8/2021 on Foreign Workers.

Indonesian Investor KITAS offers major benefits, with the most attractive ones include the ease of application and the waiver of the work permit fee. If foreign investors were required to pay a hefty fee of USD 1,200 per year, this is no longer the case with an Investor KITAS, provided that they satisfy all the investment requirements. Moreover, foreign investors do not need to wait for months to start working after pouring their initial investment.

As such, Investor KITAS is now an appealing option to many investors who are interested in investing in the country. Read on to know more about Indonesian Investor KITAS.

However, before we go further, please note that currently the Indonesian government no longer issues KITAS in the form of a physical card, so this residence permit is better known as a Limited Stay Permit (ITAS) to avoid confusion.

Types of Investor KITAS/ITAS

In Indonesia, investor KITAS/ITAS can be categorized into two:

  • Index 313: 1-year KITAS/ITAS
  • Index 314: 2-year KITAS/ITAS

 

Both types allow investors to enter and leave Indonesia multiple times within the permit’s specified validity, which is usually based on the validity of your passport.

How to Qualify

As an investor, you are required to have a minimum investment of IDR 1 billion in invested shares to be eligible for an investor KITAS/ITAS. Furthermore, the invested capital of the company has to be over IDR 10 billion.

A newly established company will be able to sponsor the investors upon receiving the business registration number (Nomor Induk Berusaha – NIB) and business licenses (Izin Usaha). For businesses that are already up and running, you need to apply for all necessary licenses through Online Single Submission (OSS).

To know more, learn the Implementation of the Online Single Submission (OSS) System in Indonesia.

How to Apply

As previously mentioned, one of the greatest advantages of an investor visa is its ease of application without the tedious procedure and the expensive fee for a work permit.

Previously, investors were required to pay USD 1200 per year for a work permit to qualify for investment. In addition, they are also required to wait several months to obtain a work permit after the initial capital is being injected.

Luckily, the new regulations have simplified these cumbersome procedures. To summarise, the new process of getting an investor KITAS/ITAS is as follows:

  • Prepare required documents that include a signed application letter and company registration documents
  • Obtain a VITAS
  • Apply an investor KITAS/ITAS upon arrival at an immigration office.

Upon request, Cekindo can provide you with more detailed information on the required documents and application procedure.

Does an Investor KITAS/ITAS Allow You to Work in Indonesia?

According to the BKPM of Indonesia, a director of a company on an investor KITAS/ITAS can work as long as the following criteria are satisfied:

  • All tasks handled by the director shall fulfill the scope of the company’s business activities
  • The company provides equal opportunities to all Indonesians to make a living.

A different condition may apply to a commissioner of a company. According to our inquiry to the Ministry of Manpower, a commissioner can work with Investor KITAS/ITAS.

However, if you are an investor who wants to take a very active role in the company, we highly recommend you take a position as the main director or the second director rather than a commissioner, as this role is expected to have a less active role and involvement in the daily operations of the company.

Apply through Cekindo

Get in touch with us should you require any assistance from us. Our visa and legal experts can assist you in applying for your investor KITAS/ITAS. We will be with you every step of the way.

Fill in the form below or visit our offices in Jakarta, Bali, and Semarang.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

The sponsor must be a company for single and multiple-entry businesses and working visas. The sponsor company is the legal entity that invites you to a business meeting or the business you will be working for. Regarding visit and retirement visas and KITAS & KITAP stay permits, the sponsor must either be an Indonesian legal entity or a citizen. If you need a visa sponsor, InCorp provides sponsorship via HR Outsourcing and manages payroll for your foreign employee.