In an effort to enhance the quality of foreign investments in Indonesia, the government has announced significant changes to the Investor KITAS regulations. The updates are stipulated through PERMENKUMHAM no. 22 Year 2023 about Stay Permit/ Visa to Indonesia.
One of the most important changes is the increase in the required investment amount to meet the criteria for foreign investors to invest in Foreign Direct Investment (PMA) companies. Previously, foreign investors could invest with a minimum of 1 billion Indonesian rupiah. However, with this change, Investor KITAS holders must now have at least 10 billion rupiah per person to be eligible to invest in Indonesia.
This step is taken with the goal of creating better investment quality and a positive impact on the national economy. With the increased investment requirement, the government aims to attract larger foreign investments, which, in turn, will contribute more significantly to economic development in Indonesia.
Highlight of the Regulation Amendment
Additional documents include proof of minimum share ownership of Rp10,000,000,000.00, Ministerial Decision regarding the establishment of a limited liability company, and the company’s bank statements for the last 2 months. However, as of the time this article is released, Indonesian Government still accepts 2 years Investor KITAS with minimum company shares of Rp1,000,000,000.00 and will still valid until further notice.
Requirements for Obtaining the Latest Investor KITAS in 2023
In addition to the change in the investment amount, there are other requirements to be aware of in the latest 2023 Investor KITAS regulations. These requirements include:
- Application for Limited Stay Visa: Foreign nationals wishing to be foreign investors must apply for a Limited Stay Visa for a maximum stay of two years. This application is submitted by the foreign national or sponsor through an application to the Immigration Officer appointed by the Directorate General of Immigration.
- Supporting Documents: Documents to be attached to the application include a valid national passport, sponsorship evidence, proof of living expenses for themselves and/or their families during their stay in the Indonesian territory, recent colour photographs, and other documents supporting the purpose of the foreign national’s visit.
- Cost of Living Amount: The cost-of-living amount is determined by the Director General. This amount is the sum of money that the foreign national or sponsor must possess to ensure they can maintain their livelihood in Indonesia during their stay.
- Change in Shareholding Value: The required value of share ownership as mentioned is set at 10,000,000,000 Indonesian rupiah or equivalent. This value can change after coordination with the relevant ministries or agencies.
- Shareholding Requirements: In case the shareholding requirement mentioned above is not met, foreign nationals engaged in capital investment activities and occupying positions as board members or board of commissioners can apply for a Limited Stay Visa for the purpose of employment in accordance with the prevailing labour regulations.
About Investor KITAS
What is Investor KITAS?
KITAS, or Limited Stay Permit Card, is a temporary residence permit granted to foreign nationals who wish to live in Indonesia for a specified period. One of the prominent KITAS categories that is currently under discussion is the Investor KITAS. As holders of Investor KITAS, foreign nationals are granted residence permits in Indonesia with the purpose of engaging in activities as foreign investors in their partner companies in Indonesia. The presence of Investor KITAS offers various advantages, both for the Indonesian government and foreign investors.
What Are the Benefits of Having Investor KITAS?
Why is having Investor KITAS highly valuable? Investor KITAS provides the following advantages:
- Supporting Investments in Indonesia: Investor KITAS offers residence permits to foreign investors planning to invest in Indonesia, thereby promoting increased foreign investment in the country.
- Access to the Local Market: Investor KITAS provides foreign investors with closer access to the local market, which can assist in managing and developing their businesses.
- Extended Stay: With Investor KITAS, the duration of stay granted is relatively long, lasting up to two years, allowing investors to remain in Indonesia for an extended period without the need to renew their residence permits every few months.
- Shareholders’ Rights: Investor KITAS allows foreign shareholders to hold an official position in Indonesian PMA (Foreign Direct Investment) companies.
How to Obtain Investor KITAS through LetsMoveIndonesia
Adhering to the changes in the Investor KITAS regulations is crucial for foreign investors planning to invest in Indonesia. To further understand these changes and proceed with the application process correctly, it is highly recommended to consult with experienced legal consultants.
LetsMoveIndonesia is one of the institutions that can assist foreign investors in understanding the new Investor KITAS regulations. They have the experience and knowledge required to guide you through this process. Feel free to reach out to them for the necessary assistance when investing in Indonesia.
