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Investor Visa (KITAS) – Who is it for and what are the benefits?
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 Visa / Investor ITAS making it significantly easier to obtain, as well as make some huge financial savings.
What is Investor Visa (Investor KITAS)?
The Investor Visa (ITAS), also known as Izin Tinggal Terbatas 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 ITAS 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 most popular Visa’s to possess in the country.
The benefits of opting for 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$1200 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 monthly /$1200 annualy.
The benefits of opting for 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$1200 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 monthly /$1200 annualy.
Who can obtain the Investor KITAS?
Prior to obtaining the KITAS, 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, a foreign shareholder should first have a deposit with minimum value of 1 billion rupiah in personal shares invested in a PMA company and hold a title of either Director or Commissioner.
You should meet the following investment requirements to obtain an Investor Kitas:
- The investor should have a minimum of 10 billion IDR in shares invested.
- The company’s paid up capital should have a minimum of 10 billion IDR, which also has a requirement to declare minimum investment plan 10 billion IDR.
The sponsor company can start sponsoring Investors once it has obtained a business registration number (Nomor Induk Berusaha) and trading licenses (Ijin Usaha), foreign company investment realization report (LKPM, this report should be conducted every three months), company’s documents, the ID card and tax number of the company’s representative (should be valid)
If the shareholder holds no position in the 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.
Steps to Apply for Your Investor Visa (KITAS)
- To obtain an Investor KITAS, the applicant must have a foreign-owned company (PT PMA) in Indonesia and have the shares. Once the business is set up, you may now apply for the Investor KITAS.
- Provide all documentation related to the KITAS and we will verify to ensure a successful application.
- All documentation will be uploaded to the online immigration system. Once the visa is approved the applicant will receive an e-visa (Electronic Visa), which they will need to print.
- The applicant may now enter Indonesia using an e-visa.
- Upon arrival to Indonesia, the applicant will need to do a biometric whereby; they take a profile photo, as well as provide fingerprints.
- The KITAS (Stay Permit) will be issued and given to the applicant within 3 days.
- Within 14 days of the KITAS issuance, you must register at the Civil Departments, whereby you will obtain your SKSKPS (Certificate of Family Formation of Temporary Residents) and STM (Police Certificate).
Common Questions About Investor Visa
How much money can a foreigner save by choosing an Investor KITAS instead of a Working KITAS?
If you qualify for an Investor KITAS, you could save a significant amount of money. The Investor KITAS is available in two durations: one year and two years.
For example, by choosing the two-year Investor KITAS, you would save US$2,400 over the period because the DPKK fund is not mandatory, and you would avoid annual KITAS processing fees and associated costs.
On average, a visa holder can save approximately 40 million IDR over the course of the two-year visa.
According to subsequent BKPM amendments to Presidential decree BKPM no.5/2019, Indonesia offers additional benefits to Investors residing in the country. Before this regulation was issued, Investors were required to apply for a Working KITAS (Index code 312) and a working permit, which cost US$1200 per year as a mandatory fee.
Consequently, due to this amendment, Working Permits are no longer necessary for Investor KITAS holders, reducing the Visa outlay by US$100 per month or US$1200 per year.
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 Year 2018 on 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 2 years stay permit. If you, as a Commissioner, also want to be allowed to work, you will need to have minimum IDR 1,125,000,000 (one billion, one hundred and twenty-five thousand rupiah) share ownership of the company.
To legally work in Indonesia, you have to first apply for a Work Permit.
Can investors extend their Investor KITAS?
Yes, foreign investors can renew their Investor Visa. The initial KITAS is typically granted for one or two years, and you can apply for renewals before it expires. The renewal process is similar to the initial application, requiring updated documents and fulfilling any new requirements that may have come into effect.
Is it possible to convert my ITAS to KITAP?
Yes, under certain conditions, it is possible to convert your Investor KITAS (ITAS) into a KITAP (Permanent Stay Permit). Generally, you need to have held a KITAS for a certain number of consecutive years and meet other specific requirements, such as having made a significant investment in Indonesia or being married to an Indonesian citizen.
Can a company apply for more than 1 Investor KITAS?
Yes, a company can apply for more than one Investor KITAS as long as each foreign national meets the individual requirements. This typically includes holding a minimum specified amount of shares in the company (often 1 billion IDR or more) and fulfilling other criteria related to their role and investment in the company.
Can the Investor KITAS support Dependent visas?
Yes, the Investor KITAS can support dependent visas for your spouse and children. This allows your family members to stay with you in Indonesia during the validity of your KITAS.
Can this ITAS support Dependent visas?
If you’re referring to a general ITAS (Temporary Stay Permit), whether it can support dependent visas depends on the specific type of ITAS and its underlying sponsorship. Some ITAS categories, such as those based on work or marriage, often allow for dependent visas. However, it’s best to confirm with the Indonesian immigration authorities or a qualified immigration consultant to be certain about your specific ITAS.
Since the Recommendation Letter from BKPM is no longer needed, the Investor KITAS application has become quicker than it used to be. Now we can apply using the online system, directly to the Immigration authorities and in a matter of days, your e-Visa should be granted.
Up until October 2020 all visas were processed in Indonesia and what was known as a TELEX was sent to an Indonesian Embassy overseas. Due to the Covid pandemic, the Indonesia government introduced E-Visas to mitigate risk of spreading the virus. Visa costs to the government which were previously paid to the Embassy are now paid at application stage in Indonesia.
Once you’ve entered Indonesia, you need to convert your 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.
How much is the fee to process the Investor KITAS?
There are 2 options for the Investor KITAS, 1 year and a 2 year KITAS. In Jakarta our prices are 15 Million IDR for the 1-year KITAS and 18 Million IDR for 2-years. Most people opt for the 2-year option as it provides security and increases overall saving over the term of visa.
Check out these other useful guides about Immigration and Company Registration processes in Indonesia!
Why use Lets Move Indonesia to help with your visa application process?
Over the last few years, we have handled thousands of people from all over the world with their immigration, business setup, real estate, and relocation needs in Indonesia.
We have become known as Indonesia’s Most Trusted Agency, and we are proud to have earned that reputation in Jakarta and Bali. We believe in being honest and transparent by maintaining our comprehensive solutions at the same rate for every individual.
Best of all, our customers typically save 25 to 40% compared to our top Google competitors.
We are proud to be the pioneers in the Expatriate Services Industry in Indonesia. Contact us today to learn how we can help you make your move to Indonesia as smooth and stress-free as possible.
Requirements
The documents required include:
- Original 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
- Business License (Izin Usaha)
- 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
- Bank account statement with minimum balance USD 1500
Please note that the duration granted is based on the applicant’s passport validity – with a with a minimum 18 months validity, you will only be granted a 1 year Investor KITAS, whereas if you have more than 30 months validity, you can obtain a 2-years KITAS.
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