After setting up a PT PMA, several questions arise: Which visa is the most suitable for living and relocating to Indonesia? Can you work in Indonesia and in Bali with an investor KITAS?
For long-term expatriates, selecting the right visa is crucial to ensure a legal and secure stay in Indonesia, as recent news has highlighted the risks of immigration violations. Choosing the right stay permit is crucial to avoid trouble with immigration and to live in Bali, Lombok, or Jakarta.
This article provides a comprehensive comparison of two primary options: the Investor KITAS visa and the Working KITAS. We’ll detail the specific requirements for each, including the minimum share value for investors and the need for a working permit, and clarify the distinction between them in practice.
By understanding the rights and limitations of each visa, from a director’s role to the ability to work in a specific position, you can make an informed decision that aligns with your professional goals and avoids future complications.
At ILA Global Consulting, our extensive experience in Indonesian immigration law allows us to simplify this complex process for our clients. We possess a strong comprehension of the regulations, ensuring your visa needs are met efficiently and without hassle.
Our services have successfully assisted countless foreign visitors in Indonesia, contributing to their problem-free and compliant stays.
What is an Investor KITAS?
An investor KITAS is granted to foreigners owning shares in a PT PMA for a value of 10 billion IDR. This amount, initially at 2.5 billion a few years ago, has been updated recently, and all foreigners willing to apply or renew their Investor KITAS must comply with the amount. This visa is primarily provided to foreigners who invest in Indonesia and are required to deposit 10 billion IDR in a local company.
As per the company law, a shareholder can also be a director or commissioner of the company. It means that the director, who holds 10 billion shares in the company, can obtain an investor KITAS. The Investor KITAS is a temporary stay permit valid for 1 or 2 years, renewable up to 5 years before being eligible to apply for a KITAP (permanent stay permit).
For a director or commissioner with a 10 billion share value in a company, the system will automatically detect them as investors, and the only KITAS they can apply for is the investor KITAS.
Key Terms for Investor KITAS in Indonesia
| Term | Definition |
|---|---|
| Investor KITAS | A temporary stay permit granted to foreigners who invest in Indonesia. To qualify, individuals must own shares in a PT PMA with a minimum value of IDR 10 billion. |
| PT PMA | Perseroan Terbatas Penanaman Modal Asing. A foreign-owned limited liability company in Indonesia. Foreigners must own shares in a PT PMA to be eligible for an Investor KITAS. |
| KITAP | Kartu Izin Tinggal Tetap (Permanent Stay Permit). A long-term residency permit that an Investor KITAS holder may apply for after holding the Investor KITAS for a continuous period (typically 5 years). |
What is a Working KITAS?
A working KITAS is granted to a foreigner obtaining an IMTA (working permit) from the Ministry of Manpower. Once the working permit in Indonesia has been issued, the foreigner can apply for a working visa at the immigration office and obtain a working KITAS (Temporary Stay Permit) for one year.
Despite the immigration website allowing a visa for 2 years, the manpower still issues only a working permit for 1 year, making it impossible to apply for a 2-year working KITAS.
The working permit allows the foreigner to work only for the company that sponsors the permit. It means if a foreigner occupies the role of sales manager in a company, the person can work only as sales manager and cannot work for another company. Furthermore a foreigner can occupy only 1 position in a company and work in only 1 company.
In other words, a person with a company in Indonesia and serving as a director can only hold the director position and not occupy another position within the company, even if the person is a shareholder of the company.
Key Terms for a Working KITAS in Indonesia
| Term | Definition |
|---|---|
| Working KITAS | A temporary stay permit that allows a foreigner to live and work legally in Indonesia for a specific company and in a specific role. It is a one-year permit that can be extended. |
| IMTA | Izin Mempekerjakan Tenaga Asing (Work Permit). This is the official document issued by the Ministry of Manpower that grants a foreigner legal permission to work for a sponsoring company in Indonesia. |
Your Visa Process Made Easy with ILA Global Consulting
Indonesia offers a wide range of visas, each with its own specific requirements, regulations, and duration. With more being issued by the government constantly, it can be challenging to keep track and choose one that is right for you.
With the help of ILA, you can be sure that you’ll get the best visa for your needs as quickly and efficiently as possible without having to worry about any missing documents.
Whether you’re looking for an Investor KITAS, Working KITAS, Second Home Visa, Spouse KITAS, Multiple Entry Business Visa or Remote Worker Visa, we can help make the process efficient and smooth.
Schedule a free consultation today or learn more about the different visa options.
Working KITAS or Investor KITAS: Which One is For a Director or Commissioner?
This topic is often confusing for most foreigners. As mentioned before, a director with a share value of more than 10 billion cannot apply for a working KITAS, but only for an investor KITAS.
In other words, the immigration recognizes that a foreigner can work as a director with an investor KITAS if the share value is above 10 billion. Indeed, if the share value is below 10 billion, then the director or commissioner can apply for a working KITAS.
In Practice, How Does Immigration Treat Both?
In practice, the working permit is more protective, and we recommend that individuals willing to work in Indonesia apply for a working KITAS instead of an investor KITAS if the work they intend to perform involves public work and interaction with third parties.
If the work involves only signing documents and representing the company, then the investor’s KITAS will be sufficient.
Can I Work as a Director with an Investor KITAS?
You can represent the company and sign documents. You can define the company’s orientation and strategy, and provide the general policy.
What is the Role of the Director?
We know it can be frustrating, but the director of a company can work only as the director, even if you are an entrepreneur at 99.9%. In other words, you cannot be a sales or yoga teacher with your own company or a chef in a restaurant if you are the director. You have to choose the position you want to occupy.
Can I Hire People as a Director?
The hiring process falls under the Human Resources department, and a director cannot hire other employees. The HT has to conduct the recruitment process. Of course, the director can sign the working contract.
Do I Need a Salary as a Director or Commissioner?
The director and commissioner are employees of the company and a board member. A salary is declared when the director applies for example for a working KITAS. In other words, the director and commissioner have to contribute to the BPJS system and pay tax on the salary received each month.
Key Terms for Directors and Commissioners in Indonesia
| Term | Definition |
|---|---|
| Director | A key position within a company in Indonesia responsible for the day-to-day management and legal representation of the business. A director can only perform duties related to their role and cannot hold another position (e.g., as a sales manager or a teacher) within the same company. |
| Commissioner | A member of a company’s board that provides oversight to the director(s). Like a director, a commissioner can only hold this single position within the company. |
| BPJS System | Badan Penyelenggara Jaminan Sosial. Indonesia’s national social security system. |
While the options for a KITAS visa may seem confusing, understanding the specific requirements and limitations of the Investor KITAS versus the Working KITAS is crucial. Choosing the right visa from the outset protects you from legal issues and allows you to live and work in Indonesia with confidence.
Don’t leave your legal status to chance. For personalized guidance on which KITAS visa is best for your unique situation and occupation, contact ILA Global Consulting today. Our expertise ensures a seamless process, helping you secure the right stay permit and focus on your ventures in Indonesia.
