One of the most off-putting things about obtaining a visa in Indonesia is the cost of the work permit – particularly for new business owners!
However, in 2019, the Indonesian Government re-launched the Investor KITAS making it significantly easier to obtain, as well as make some huge financial savings.
In this article, we interviewed Suri Mangiwa, a Visa and Immigration Expert at LetsMoveIndonesia who tells us all about it.
Firstly, what is the Investor KITAS and when was it introduced?
The Investor KITAS is a visa specifically designed for business investors in Indonesia, allowing them to live and manage their business within the country with relative ease. Although the Investor KITAS has actually been in effect since 2011, based on Law No. 6/ 2011 and later edited again in 2018; it wasn’t until the rebranding in 2019 when significant changes were noted – making this KITAS type one of the most popular visas to possess in the country.
What are the advantages of picking an Investor KITAS over a Working KITAS?
According to the subsequent BKPM amendments to the Presidential decree BKPM no.5/2019, Indonesia offers further benefits to investors residing in Indonesia. Prior to this regulation issuance, it was necessary for investors to apply for a Working KITAS (Index code 312), along with a working permit which costs US$1,200 (Rp17.3 million) per year, as a mandatory fund.
Consequently, due to this amendment, Working Permits are no longer necessary for Investor KITAS holders – reducing the visa outlay by US$100 (Rp1.4 million) per month/$1200 (Rp17.3 million) per year.
How much money do people generally save by picking an investor KITAS over a Working KITAS?
If you are eligible for an Investor KITAS, you can save a small fortune. The Investor KITAS is available with two-term lengths: one year and two years.
As an example, by picking the two-year Investor KITAS, you will save US$2,400 (Rp35 million) over the term because of the non-compulsory DPKK fund as well as yearly KITAS processing and associated costs. On average, our customers save approximately Rp40 million over the course of the two-year visa!
Who can apply for an Investor KITAS?
Before an Investor KITAS can be obtained, the company’s authorised capital should exceed Rp10 billion and there should be a minimum of 25 percent of its authorised capital paid up. For companies that were set up prior to 2009, lower capital investment is possible. Finally, an investor should first have a minimum value of Rp1 billion in personal shares invested in a PMA company and hold the title of either director or commissioner.
As an investor that holds no position in a PMA company, but with personal shares of over Rp1.125 billion, you will also be eligible to apply for an Investors KITAS. However, work is not permitted.
Can you work using an Investor KITAS?
If you are an investor that is stated as a Director, you are allowed to work while holding an Investor KITAS. This is stipulated in Manpower regulation Permenaker No. 10/ 2018 in Article 10, Article 22, and Article 26 point C. If an investor is stated as a commissioner, you are not allowed to work – but you can still get the facility of maximum two-year stay permit. If you, as a commissioner, also want to be allowed to work, you will need to have minimum Rp10 billion share ownership of the company.
Is the Investor KITAS renewable or do you need to cancel it once the term is up?
Yes, it is renewable.
Is it possible to obtain an Investor KITAP?
Yes, it is possible.
Can a company apply for more than one Investor KITAS?
Yes, one company can apply for more than one Investor KITAS as long as the foreigner’s shares are stated in the Deed of Establishment of the Company and the shares are a minimum Rp1 billion.
Can the Investor KITAS support dependent visas?
The Investor KITAS can support dependents.
What is the process and how long does it take?
Since the recommendation letter from BKPM is no longer needed, now the Investor KITAS application has become quicker than it used to be. Now we can apply for a Telex (Visa Approval) directly on the immigration system.
A TELEX VITAS will be automatically sent to an Indonesian embassy abroad of your choice. We suggest you contact or check the Indonesian embassy of your chosen destination to ensure you are aware of the requirements to collect your visa and also check the processing time since there are often varying rules and regulations that may affect your Investor KITAS application. We would recommend using an agent to process your application in the collection country as it will speed up the collection to only one day.
After receiving your VITAS at your respective embassy, you will have 90 days to enter Indonesia. Once you’ve entered Indonesia, you need to convert your TELEX VITAS to Investor KITAS. This process will take approximately 10-14 working days. After you submit your passport to the immigration office, you will get a schedule for a biometric session, and then wait for the final steps of conversion. After the process, you will receive your New Investor KITAS which allows you to live and manage your company in Indonesia.
What documents do you need to process the Investor KITAS?
The documents required include:
- Investor’s passport with minimum 18 (eighteen) months validity for one-year KITAS application.
- Company’s deed of establishment and its amendments (if any).
- Ratification from the Ministry of Law and Human Rights (MoLHR) of company sponsor / SK Kehakiman Pendirian
Perusahaan dan Perubahannya (if any).
- Tax Registration Number (NPWP) of company sponsor.
- Business Domicile.
- Business Licence.
- Business Identification Number (NIB).
- ID Card (KTP) and Tax ID (NPWP) of the Indonesian Director of the company sponsor (if needed).
- Blank document with the company’s letterhead.
- Bank account statement with a minimum balance of US$1,500 (Rp22 million).
Please note that the duration granted is based on the applicant’s passport validity. With a minimum of 18 months’ validity, you will only be granted a one-year Investor KITAS, whereas if you have more than 30 months’ validity, you can obtain a two-year KITAS.
How much does the Investor KITAS cost?
There are two options for the Investor KITAS, as previously mentioned. In Jakarta, our prices are Rp15 million for the one-year KITAS and Rp18 million for two-years. Most people opt for the two-year option as it provides security and increases overall saving over the term of the visa.
If someone has any questions or needs to know more, how can they contact you?
If you have any further questions, you can reach me at firstname.lastname@example.org or call 021 300 297 27. If you are looking to process your next visa or need help with your relocation, company establishment or real estate needs, then contact LetsMoveIndonesia – Jakarta’s Most Trusted Agency via a call to 021 300 297 27 and email to email@example.com.