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 relaunched the Investor KITAS making it significantly easier to obtain, as well as make some huge financial savings.
In this article we interview Suri Mangiwa, a Visa and Immigration Expert at LetsMoveIndonesia who tells us all about it!
LMI: Firstly, what is the Investor KITAS and when was it introduced?
SM: 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 Number 6 Year 2011 and later edited again in 2018; it wasn’t till the rebranding in 2019 significant changes were noted – making this KITAS type one of the popular Visa’s to possess in the country.
LMI: What are the advantages of picking an Investor KITAS over a Working KITAS?
SM: 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$1200 per year as a mandatory fund.
Consequently, due to this amendment, Working Permits are not longer necessary for Investor KITAS holders – reducing the Visa outlay by US$100 per month/$1200 per year.
LMI: How much money do people generally save by picking an investor KITAS over a Working KITAS?
SM: If you are eligible for an Investor KITAS, you can save a small fortune. The Investor KITAS is available with 2 term lengths, 1 year and 2 years.
As an example, by picking the 2-year Investor KITAS you will save $2,400 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 40 Million IDR over the course of the visa!
LMI: Who can apply for an investor KITAS?
SM: Before an Investors KITAS can be obtained, the company’s authorized capital should exceed 10 billion rupiah, and there should be a minimum of 25% of its authorized capital paid up. For companies that were set up prior to 2009, a lower capital investment is possible. Finally, an investor should first have a minimum value of 1 billion rupiah in personal shares invested in a PMA company, and hold a title of either Director or Commissioner.
As an Investor that holds no position in a PMA company, but with personal shares of over IDR 1.125.000.000 (one billion one hundred and twenty-five thousand rupiah), you will also be eligible to apply for an Investors KITAS, however work is not permitted.
LMI: Can a company apply for more than 1 Investor KITAS?
SM: Yes, one company can apply for more than 1 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 1 Billion IDR.
LMI: Can the Investor KITAS support dependent visas?
SM: The Investor KITAS can support dependents.
LMI: What is the process and how long does it take?
SM: The first step for this KITAS is to obtain a recommendation letter from the Investment board in Jakarta. To apply for this recommendation, you will need to submit a signed application letter by a company’s representative, your passport, the company’s documents and the ID card and tax number of the company’s representative.
Applications are reviewed on a case by case basis and you will get a feedback right after you submit the documents, a successful application can take up to 14 days to be approved. Once a recommendation by BKPM is issued, the next step is to apply for a TELEX VITAS in 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 as 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 1 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 you TELEX VITAS to Investor KITAS. This process will approximately take 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.
LMI: What documents do you need to process the Investor KITAS?
SM: The documents required include:
- Investor’s passport with minimum 18 (eighteen) months validity for 1-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 (SKDP) of company sponsor
- Business License
- Business Identification Number (NIB)
- ID Card (KTP) and Tax ID (NPWP) of the Indonesian Director of company sponsor (if needed)
- Blank document with company’s letter head and duty stamp
- Bank account statement with minimum balance USD 1500
Please note that the duration granted is based on the applicant’s passport validity – with a 30-month validity you will be granted a 1-year KITAS. If your passport validity falls below the required minimum duration, then the 1-year Investor KITAS will be granted with a multiple exit and re-entry permit.
How much does the Investor KITAS cost?
SM: There are 2 options for the Investor KITAS, a 1-year and a 2-year KITAS. Prices are as below. Most people opt for the 2-year option as it provides security and increases overall saving over the term of visa.
LMI: 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 on email@example.com
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! T: 021 300 297 27 E: firstname.lastname@example.org
Found this article interesting? Then check out these other useful guides about Visa and Company Establishment processes in Indonesia!
Why use LetsMoveIndonesia to help with your visa?
Over the past few years, we have helped hundreds of expatriates from all over the world with their Immigration, Company Establishment, Real Estate and Relocations needs.
Commonly referenced as Jakarta’s Most Trusted Agency, we have achieved notoriety by being the first agency in Jakarta to advertise our Visa & Company Establishment prices both on and offline. We believe in ethical practices which means we are completely transparent about our prices – We don’t charge people different prices based upon their nationality, our sales targets or how rich you or your company appears to be – Everyone pays the same.
Most importantly; our customers save on average 25 – 40% by using us rather than our competitors.
Lastly; we are the only Agency in Jakarta to be located in a mall, so our customers can visit us whenever they like. Have a question or need advice? Come on in whenever is convenient for you.
LetsMoveIndonesia is proud to be the trendsetters in the Expatriate Services Industry in Jakarta – Come and see what all the fuss is about and contact us today!