# ILA Global Consulting

> Your LEGAL and TAX Advisor


## Posts

- [Optimize Tax on Property Investment in Lombok and Bali](https://ilaglobalconsulting.com/optimize-tax-on-property-investment-in-lombok-and-bali/): Investing in property in Bali and Lombok generates a high return on investment. However, the way to invest in property can affect your tax depending on your tax residence. Developers and real estate agents often recommend property investment in Bali under personal names through leasehold agreements. But what’s the reality? What are they not telling you, and how might you be misled? Agrarian Law from 1967 The Indonesian law in Indonesia is clear. Individuals cannot invest in Indonesia under their name if they are not residents. Here are the person or entity authorized to invest in land and property in Indonesia: Resident (Foreigner with a KITAS or local) Foreign entity with a representative office in Indonesia Companies such as PT PMA Despite the agrarian law, some notaries or common practice let foreigners invest under their names and sign rental agreements (Leasehold agreements). Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. What is a leasehold agreement in Bali and Lombok? Lombok doesn’t offer leasehold agreements very rarely. Bali has its specificity historically to provide leasehold agreements to investors, while the rest of Indonesia offers mostly freehold land or villas. The leasehold agreement (Hak Sewa) is a rental agreement for a certain time. This agreement has terms and conditions between two parties. It is important to understand that this type of agreement doesn’t represent a property investment and taxation and capital gain will be treated differently as a freehold. At ILA, we still receive requests regarding mortgages on leasehold property, essentially due to a misunderstanding or misleading from developers or real estate agents advertising foreigners are buying a property. To be clear, when a foreigner buys a leasehold property, they do not buy a land or villa. They rent a villa or land. This has serious implications: Impossibility to mortgage The owner can always resell the property Taxation is different and less advantageous No right to build on the land legally under the foreigner’s name Unfortunately, in property investment in Bali, we have encountered cases where landowners resell the land, and the new owner forces the lessee out by repaying the lease. For a lessee building a villa after having paid only the lease value of the land, this has significant consequences. It means the client loses the value of the construction, and there is nothing legal to do about this. We recommend having a strong contract of origin to protect the buyer. Freehold Property in Bali and Lombok Contrary to leasehold property, the land title is transferable to the PMA or foreigner if the foreigner buys a property under a PMA or, for example, an apartment under a KITAS. The land title has a limited duration of 80 years (30+20+30). However, the buyer can resell the property at the price of a freehold property during the validity period. Read More : Do You Need To Pay Taxes As A Digital Nomad In Bali Tax Optimization and Legal on Property Investment Taxation is important and affects the return on investment and can bring some unlucky surprises.  Why do real estate agents and developers recommend investing under personal names? Some real estate agents and developers recommend investing under personal names. Here are most of the reasons: They want to close the deal quickly and think that opening a company will slow down the process while there is many ways to secure the deal while the company is created If the buyer has a PT PMA, the buyer has to withhold the tax so the seller cannot hide the tax to the tax office. When they resell the property, some buyers want to undervalue it and do not declare the tax, making two agreements with the notary. Those reasons are not acceptable and can create significant challenges for buyers engaged in property investment in Bali when reselling the property or receiving income. In some cases, the resale of a lease or the income derived from it is considered rental income. For example, reselling a lease of 25 years would be considered as receiving an income for 25 years of rent……Taxation, in some cases, can be huge. How do you invest as a tax resident? As a resident, investing under a personal name might be interesting as the taxation on a lease is a final tax of 10%. However, a tax resident as a foreigner cannot receive income from a business without a proper licence. A company with a proper licence is still necessary to obtain legitimate income. How to invest as a non-resident? As a non-resident, the best way to invest is through a PT PMA. This PT PMA will own the lease or the freehold property. As shareholders, the non-residents can get an investor in KITAS. This investor, KITAS, allows the non-resident to be taxed at 10% on dividends (profit). Unlike rental income, dividends are usually included in the non-double taxation in the tax treaty. Investors looking to receive a lower tax on dividends can also have their PT PMA held by a company overseas with a better tax treaty with Indonesia than the one in their home country with Indonesia. For example, if  France has a good tax treaty with Hong Kong, France has a bad treaty with Indonesia and Hong Kong has a good tax treaty with Indonesia. It might be interesting to have Hong Kong invest in Indonesia and take the dividend from Hong Kong to bring it back to France. Investing in Indonesia can sometimes be difficult to master as 10 people can give you different opinions. We recommend talking to a proper professional and tax consultant to understand the best investment method. Each investor has a personal situation
- [Property Investment Opportunities in Sumba: Legal Considerations and Strategies](https://ilaglobalconsulting.com/property-investment-in-sumba-legal-considerations-and-strategies/): Sumba is an island rich in natural beauty and cultural heritage, and it is emerging as a promising destination for property investment in Indonesia for those looking for unique opportunities outside of Bali or Lombok. With 1hour direct flight from Bali, the pristine beaches, hills, and authentic cultural heritage, Sumba offers a different landscape than Bali or Lombok. The island was sought and visited by backpackers or a specific clientele who could afford the luxury hotels on the south coast of Sumba. Why Invest in Property in Sumba? Sumba is often considered as one of Indonesia’s last frontier in the archipelago. While other islands like Bali and Lombok have seen rapid development, Sumba retains its rustic charm, offering investors early opportunities. Growing Tourism Appeal Most tourists heading to Sumba stay in the south coast natural beauty near the pristine beaches like Nihiwatu and Marosi. The island has two main airports in the two main cities, Tambaloka and Waingapu. This strategy works particularly well as demand for property investment in Sumba continues to rise, especially as the region is at the early stages of a growing trend. Tourism in Sumba is rising, with visitors drawn to surfing, horseback riding, and exploring traditional villages. This trend points to increasing demand for accommodations, restaurants, and recreational facilities, creating investor opportunities. Land Opportunities: Sumba offers hectares of land at the price of a villa in Bali. It is a good opportunity for investors looking to buy asset and develop properties or just sit on the land waiting for capital gain. Untapped Market Potential: Unlike Bali, where the market starts to be saturated and land prices are at a premium, Sumba offers an untapped property market with vast tracts of affordable land. This affordability allows investors to purchase larger parcels for development or speculation.  Infrastructure Development: The lack of infrastructure allows contractors and service providers to be part of the development process. Cultural and Natural Uniqueness: Sumba’s cultural richness offers a perfect setting for eco-friendly resorts, boutique hotels, private villas. Despite the accommodation, investors can also look for opportunities for surfing (surf shop, surf school), restaurants, travel agencies, taxis, etc. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. The island is now promoted by some developers and offers cheap opportunities, and it might be the time to purchase hectares of land at the price of a small apartment in Europe or even Bali. However, investing in Sumba requires some legal, due diligence and good strategic planning to maximize returns. Legal Framework for Property Investment in Sumba Foreign investors looking to purchase land or open a business in Sumba must comply with Indonesian regulations. Investments as foreigners are structured through the following legal mechanisms: Establishing a PT PMA for property and land investment With PT PMA, foreigners can acquire land in Sumba in two ways: Acquire land under a Hak Guna Bangunan (HGB). The land title is granted to the foreigner under its company rights and ownership for a total period of 80 years. The company can then develop and operate on the land with an additional business licence. Acquire a land under leasehold (Hak Sewa). The company gets right on the land based on a contract between the landlord and the company. This private agreement defines the terms and conditions. The parties define the duration of the contracts. Once established, the PT PMA acts as a legal entity that can hold land titles and conduct business operations. We recommend to avoid Nominee Arrangements. Some investors attempt to acquire freehold land by using Indonesian nominees, but this practice is fraught with legal risks. The last few years have demonstrated investors being scammed by local persons once they wanted to resell or the business started to work well. Big developers have been scammed by even partnering with certain local companies. We always recommend having strong agreements and always working in Indonesia on legality to avoid any further complications and having those types of arrangements turned against the investors. To know more about PT PMA you can visit our page How To Establish A PT PMA In Bali Things to Consider When Investing in Sumba Due diligence: The due diligence process is important on several aspects. It is a crucial part of the acquisition process if you want to buy land, invest in a business or partner with someone. The process includes verifying land titles, ensuring compliance with zoning regulations, and confirming that the seller has the legal right to transfer ownership, road access, building authorisation, building permit etc. Independent third party to handle the process: Sumba is a small island, and the connection between people is strong. We do recommend to use a third party to avoid collusion between parties. Contracts and notary: Notary is a key person, but a notary, unfortunately, sometimes does not have the time or experience to negotiate contracts and write a proper contract. Their role is not to work on making the best contract for the buyer or the seller. Working with a legal or lawyer is recommended to review or redact the contract. Strategic Investment Approaches Sumba’s growing tourism and untapped market present several lucrative strategies for property investors: Acquiring and Subdividing Land Purchasing large parcels of land at lower per-square-meter rates and subdividing them for resale or lease is a profitable approach. This strategy works particularly well as demand for property investment increases, especially in Sumba, where the trend is just beginning to take shape. Developing High-End Resorts or Villas Sumba has always been a secret gem for HNWI. Sumba is the perfect spot for buying a piece of land and developing Resorts and vills. Act As The Developer and offering Off Plan project in Sumba Sumba is
- [How to buy a property in Bali?](https://ilaglobalconsulting.com/how-to-buy-property-in-bali/): Buying property in Bali can be confusing between all the different articles you can read. This article sheds light on how to buy a property in Bali and Indonesia and how to proceed. Key Takeaways Foreigners can securely invest in Bali real estate through leasehold, Hak Pakai, and HGB titles, with each option offering unique benefits. Investors must navigate legal aspects diligently, such as setting up a PT PMA company for legal entity status, performing due diligence, understanding taxes and fees, and working with real estate professionals to ensure a secure and profitable purchase. Understanding Property Ownership Options in Bali It can be challenging to understand how property ownership works in Bali when buying property in Bali, but being aware of the options set up for you as an investor is crucial. Leasehold, Hak Pakai (right to use), or HGB (right to build) are options available for foreign buyers depending on their price and income level as well as their needs. Only Indonesian citizens can hold land under Hak Milik when buying property in Bali. This knowledge also aids investors in making smart decisions about buying property in Bali. 1. Leasehold Properties for Foreigners Leasehold properties provide foreigners with a reliable and stable option for investment. Individuals, Foreigners or companies can lease a property. The party selling the leasehold is called Lessor while the buyer is called Lessee. A leasehold has no maximum duration as a court in Jakarta has recognized a leasehold for 100 years. Historically, buyers have been looking to buy a leasehold for a period of 25 to 30 years, although some can request a shorter or longer duration. A leasehold can be signed in front of a notary or between 2 parties without a notary A leasehold is a private contract between two parties. The clauses have to respect the Indonesian regulation. A leasehold contract should be reviewed by a legal or lawyer to make sure all clauses are protecting your rights. On a leasehold, the buyer doesn’t become the owner. The owner is still responsible for the land and building tax. The buyer has to make sure each clause on the contract cannot be used to cancel the agreement. 2. Hak Pakai: Right of Use for Foreigners Hak Pakai is a property ownership structure that permits foreign nationals holding a KITAS or KITAP to acquire property in Bali, but only on the condition that the property already has an existing building. This certificate does not allow you to buy bare land, and the property must meet a minimum value that varies from province to province. The first piece is a 30-year term, with 80 years of… 3. HGB Title for Commercial Use Foreign-owned companies (PT PMA) are permitted to hold the Hak Guna Bangunan (HGB), which is the highest property title for them. HGB is different from a leasehold agreement in that it gives the development right, including the right to resell, transfer, or mortgage the property. It is for a 30-year term, extendable to 80 years, making it ideal for those buying commercial properties or an apartment as part of a Second Home Visa. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Legal Aspects of Buying Property in Bali Navigating through the legal intricacies of acquiring property in Bali requires adherence to crucial procedures for people looking to secure their property purchase in Bali. Secure a proper offer with a proper contract Undertaking thorough due diligence Establishing a PT PMA enterprise if you want to do business with your property and apply for a Vila license to list your property on Airbnb Sign a leasehold or purchase agreement and review your contract with a third party to ensure the contract does not favour one side. It is a crucial step, especially on a leasehold. Secure your contract Most issues result from a wrong contract or misunderstanding. The initial offer is the basis of the relationship and the rest of the process. Reviewing a leasehold contract is crucial. The language barrier, even with a notary, can lead to unpleasant situations. Optimize your tax exposure Creating a PT PMA (Perseroan Terbatas Penanaman Modal Asing) helps you to acquire a leasehold or HGB but it also helps you to optimize your tax exposure and make your business and investment legal. The inclusion of no less than two shareholders An allowance for entirely foreign-owned enterprises in the domain of real estate A director and a commissioner Setting a PT PMA company helps you to optimize your taxation and get a better Return on Investment (ROI) and secure your property. Due Diligence and Property Verification Conducting due diligence and confirming the validity of property are essential components in acquiring real estate. This includes: Verifying that the seller is legally allowed to sell the property Verifying liens or encumbrances on land title Confirming that there are no active legal disputes regarding the land Verified the clear and legal owning of the property Verifying that the size of the land corresponds to what’s mentioned on the title Soil test being made to make sure land can be constructed Getting a proper road access agreement Prevent future conflicts over land boundaries or ownership Indonesia classified the land and properties on different zoning. Checking the zoning can influence how you can build and licenses you can get, specially if you are willing to have a license for Airbnb or a restaurant, Hotel etc. Taxes and Fees Involved Freehold Under license property regulations, in freehold property transactions, sellers are subject to the PPH tax of 2,5%, whereas buyers should pay a 5% BPHTB tax according to the government valuation. Owners also pay a yearly 0.5% Property Tax (PBB). Leasehold Non-resident lessors must pay a lease tax of 20%, while those with a KITAS
- [How To Open A Bank Account In Indonesia](https://ilaglobalconsulting.com/how-to-open-a-bank-account-in-indonesia/): A personal or business bank account in Bali or the rest of Indonesia is crucial to facilitate transactions in Indonesia. As a foreigner relocating to Bali or opening a business in Indonesia, using your overseas bank account can lead to high transaction fees. To avoid this, you need to open a bank account in Indonesia. Banks in Indonesia offer multi-currency bank accounts to facilitate your payments and issue invoices in Indonesia. Overview : Foreigners living in Indonesia with a KITAS or KITAP can open a personal bank account by providing a passport, residence permit, proof of address, and local phone number. The process is fast—often completed in under an hour—with instant access to a debit card and e-banking. However, Indonesian debit cards have limited online functionality, and obtaining a credit card requires a work contract or existing business. Some online banks now offer virtual cards to ease online transactions. To open a corporate bank account, the company’s director (who must hold a KITAS) must submit company documents like the deed, tax ID, and business license. The process typically takes 1–4 business days and requires an initial deposit, which varies by bank. For payment solutions, local businesses often use EDC machines and payment gateways like Xendit, with transaction fees between 2–3%. For assistance with taxes and finances, consulting services like ILA offer support tailored to foreigners and businesses in Indonesia. How to open a personal bank account in Indonesia? The regulations in Indonesia authorise residents to open bank accounts there. Foreigners with a KITAS or KITAP can open a bank account in Indonesia. Foreigners with a tourist or business visa are not theoretically allowed to open a bank account in Bali or the rest of Indonesia. However, it has been a common practice for some banks to allow foreigners to open an Indonesian bank account with an Indonesian sponsor. The documents needed to open a personal bank account in Indonesia: Passport KITAS (Limited Stay permit) SKTT (or proof of address) Local Phone number Internet banking is working in Indonesia with local numbers. KITAS holders can obtain a permanent phone number by providing a copy of their passport to the telecom provider. The procedure to open a bank account is fast, with the bank having a branch office in Bali and Indonesia. While in some countries, it can take a few days to get a debit card, the Indonesian bank provides access to the account and the debit during the registration process. The process can take less than 1 hour to use the application and get a debit card. However, the difference between the two countries is that debit cards in Indonesia are very limited in some operations, such as physical payment and withdrawal. Indeed, some online systems reject the debit card during the payment process and require a credit card. Getting a credit card in Bali or Indonesia depends on each bank. It requires some deposit and having a working contract or a business running for a while. This might be annoying for people who usually use their debit cards to pay online. Some new online banks now provide virtual cards that you can use for online payments. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. How to open a corporate account? After establishing a company in Bali, Lombok, or the rest of Indonesia, the important step is to open a corporate bank account in Bali or Indonesia to run and operate the business. To open a corporate Indonesia bank account, banks require the following: Akta of the company (deed) Tax Card (NPWP) SK (Ministry Approval) NIB (Business Identification Number) PKKPR KITAS of the director Indonesian Phone number The person able to open the bank account is the director of the company and not the commissioner of the PT PMA. The director has to be a resident of Indonesia (KITAS holder). Some banks can assist in opening the bank account while the director is still in the process of acquiring its KITAS. Procedure The process of opening a corporate bank account in Bali takes a bit more time than opening a personal bank account, as some verification steps are necessary.  Once the documents provided are approved, the bank will issue the bank account number in a maximum of 4 business days (usually 1 or 2 days) and require the shareholder to inject a minimum deposit. This deposit varies from bank to bank (OCBC can require 51 million IDR while BNI 10 million IDR). Some banks provide multi-currency accounts, but we suggest checking and indicating to customer service which currency you wish to open. After receiving the deposit, the bank can proceed with internet banking, providing a physical or virtual token (mobile). The token is to be able to initiate the transaction (maker) and approve the transaction (approver). Corporate Card Unfortunately, not all banks provide corporate debit cards. Some banks provide only credit cards and require some high guarantee for a small or starting business. Banks like Permata or BNI provide corporate debit cards, which can be useful to be able to withdraw cash instead of going to the bank. Some banks even require you to pay for a chequebook to be able to withdraw your own money at the counter. The traditional banking system is improving a lot in Indonesia and has a lot of innovation. However, the online banking system with corporate banks is still not user-friendly, intuitive and difficult to use for an initiative. Some providers have emerged to provide alternative banking. Key Terms for Open Bank Account Keyword Definition PT PMA A foreign-owned limited liability company in Indonesia, the legal entity for businesses with foreign shareholders. KITAS A
- [Property Investment Trend in Ubud (Updated 2025)](https://ilaglobalconsulting.com/ubud-property-investment/): In 2005, I jumped in a plane to start my journey to Southeast Asia and a ticket to Bali, an island that promised to be a haven of culture and natural beauty. At the time, my knowledge of this distant island was pieced together through documentaries and the vivid stories of the Lonely Planet, as Instagram and social media had not yet shrunk the world. Two places stood out for an authentic Balinese experience: Uluwatu, with its majestic temple perched on a cliff overlooking the Indian Ocean, and Ubud, the cultural heart of Bali, nestled among verdant rice paddies—now a focal point for the property investment trend in Ubud. Back then, Bukit Peninsula, south of Bali, was a sparsely populated area with early signs of development like Pecatu and Dreamland Beach. However, Ubud was already a celebrated hub for its art galleries and rejuvenating spas, the epicenter of Balinese culture as I had imagined it. UBUD the essence of Balinese culture Fourteen years have flown by since that initial voyage, and the landscape of Bali has undergone profound changes. The island has become a magnet for investors and tourists from every corner of the globe. Amidst this transformation, while places like Canggu, Kuta, and Seminyak have seen fluctuating reputations, often swayed by the fleeting whims of influencers, Uluwatu and Ubud have risen above, now leading in terms of occupancy rates. Despite the chatter among expats and long-term visitors willing to stay now in Uluwatu, my intrigue was drawn towards Ubud. I wanted to delve into why it had become an increasingly popular choice for investment and we had to deal more and more investments there. My recent time in Ubud revealed a bustling town with tourists from India, Europe, America, and Korea. It wasn’t just a matter of numbers or client interest; Ubud radiated a magnetism that drew people from all over the world. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Ubud as an investment place Ubud has indeed been the last few years the place for Yoga, wellness and other mystical trends. Despite the trends, it seems that Ubud is this place magneting anybody to visit once in their trip. I was talking to a developer recently who also had the same understanding. Everybody includes UBUD on its list. People might choose to stay in Seminyak one night OR in Canggu but UBUD is always combined in the trip while other areas are an option. UBUD is not an option in a trip and it is a MUST. By correlation the occupancy rate makes UBUD a stable investment place in terms of recurring revenue. Additionally, the property investment trend in Ubud is becoming increasingly significant, as the area’s popularity continues to grow. Read Also: Bali and Lombok Investment Trend for 2025 The essence of travel has evolved. Visitors from hubs like Frankfurt, Paris, London, Delhi, or LA are not traversing the globe to stay in a small apartment. They seek an escape, an experience that transcends the ordinary. While some developers have eyed apartments as a lucrative venture, the true essence of travel lies in its ability to offer an escape from the day to day, a gateway to new experiences. Influencers may flock to Seminyak’s beaches for the perfect picture or story, but the majority of travelers yearn for tranquility and a chance to rejuvenate their souls amidst nature. As an expat, when family or friends visit us, Ubud is invariably on the showcase list, often bypassing places like Sanur, Nusa Dua, or Kuta. The reason? Ubud has managed to preserve its essence. No place remains frozen in time, untouched by the years, but some manage to retain their core identity amidst the change. Maximizing Rental Yields in Ubud: A Strategic Guide for Investors Ubud appears to be a secured market for property investors. From the 80’s to today the market has shown is attractivity and maintained a stable occupancy rate through the decades. While some markets can provide a high and fast ROI yield, Ubud is providing a secured and long term investment with a high ROI. The property investment trend in Ubud underscores this stability, making it an appealing choice for investors. Travelers from countries such as India are also now spending vacation and honeymoon there assuring a continuity of the attractivity of Ubud while some places like Canggu start to have their attractions in question through some travelers. Read Also: Navigating Bali’s Property Maze – A Comprehensive Guide for Savvy Investors How to optimize your return on investment in Ubud? Tourists moving to Ubud are expecting to find the heritage of the balinese culture and staying in a place pervaded by the balinese culture with a touch of modernity. The recents development of some properties in Bali have shown that the most successful projects are the one maintaining the essence of Bali. The property investment trend in Ubud reflects this, as investors are increasingly drawn to the area’s unique cultural appeal and potential for high returns. Expecting a ROI of 15% on an investment in Ubud is reasonable, especially by developing a sustainable villa including materials and decoration in harmony with the environment of Ubud. How this trend will be in 2025? Ubud continues to be at the top of the property investment destination list in 2025, combining cultural charm and natural beauty with an ever-growing demand. With its serene rice fields, vibrant arts scene, and wellness retreats, Ubud offers a haven for tourists, long-term residents, and digital nomads alike, ideal for rental properties and boutique developments. While Ubud doesn’t yet bring in as much money per listing as Seminyak does, its lower initial investment costs and consistently
- [Bali Visa On Arrival Guide For 2025: Requirements And Process](https://ilaglobalconsulting.com/bali-visa-on-arrival/): For foreigners planning to visit Bali in 2025, the first question is: Do I need a visa? Since the COVID-19 pandemic, Bali Airport has no longer issued free visas to most countries except for some ASEAN countries. As a result, the Visa On Arrival is the easiest solution for travellers to enter Bali. Overview : A Visa on Arrival (VOA) for Bali is a convenient option for travelers who plan short stays in Indonesia without applying for a visa in advance. The VOA is issued directly at major airports like Bali or Jakarta upon arrival and is valid for 30 days. It can be extended once for an additional 30 days, allowing a maximum stay of up to 60 days. The cost of the VOA is USD 35, payable in cash or by credit card, and it can also be paid in Indonesian Rupiah or Euros. To obtain a VOA, travelers must have a passport valid for at least six months, a ticket to exit Indonesia, and—although rarely requested—proof of funds of at least USD 1,000 for the duration of the stay. What is a Bali visa on arrival?  A visa on arrival (VOA) is a visa delivered to a foreign national without the need to apply for a visa before arriving at the airport. By nature, a VOA is delivered directly at the airport. In addition, the VOA can either be free or require payment, which is done directly at the airport. The VOA in Indonesia is valid for 30 days, and the traveller can extend the visa for another 30 days. Validity: Initially 30 days, extendable once for an additional 30 days. Usage: It is ideal for tourism, as well as for family visits or brief business engagements. Fee: IDR 850,000 (approximately USD 60), payable at the airport or online. Renewal: A single 30-day extension is permitted. Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. Bali Visa on Arrival Requirements  Document Required To obtain a Visa On Arrival, you need the following documents: A passport with a validity period of at least 6 months at the time of arrival. An onward ticket to another destination (it doesn’t have to be to your home country) A proof of living of at least 1000 USD for the duration of your stay (usually not requested) Cost & Validity The VOA at Bali and Jakarta airports costs 35 USD. You can pay either in Indonesian Rupiah or EUR. It can be purchased in cash or by credit card. The validity period is 30 days. Which Countries Can Get Bali Visa on Arrival? Albania Andorra Argentina Australia Austria Bahrain Belarus Belgium Bosnia Herzegovina Brazil Brunei Darussalam Bulgaria Cambodia Canada Chile China Colombia Croatia Cyprus Czech Denmark Ecuador Egypt Estonia Finland France Germany Greece Hong Kong Hungary Iceland India Ireland Italy Japan Jordan Kuwait Kazakhstan Laos Latvia Liechtenstein Lithuania Luxembourg Malaysia Maldives Malta Mexico Monaco Morocco Myanmar Netherland New Zealand Norway Oman Palestine Peru Philippines Poland Portugal Republic of Korea Qatar Romania Russia San Marino Saudi Arabia Serbia Seychelles Singapore Slovakia Slovenia South Africa Spain Suriname Sweden Switzerland Taiwan Thailand Timor Leste Tunisia Turkiye Ukraine UAE United Kingdom United States of America Uzbekistan Vatican Vietnam Which Visa to Choose If Not Eligible for Bali Visa on Arrival If you are not eligible for a Visa On Arrival or if you wish to purchase your visa before coming to Indonesia, you can purchase a Single Entry Visa (Visit Visa) prior to coming to Indonesia. This is also an advantage as it avoids having to extend your visa, as you can purchase your visa directly for a period of 60 days. How to Extend Your Bali Visa on Arrival If you plan to stay in Bali for over 30 days, you can renew your Visa on Arrival (VOA) one time for an additional 30 days—60 days in total in Indonesia. You must apply for the renewal of your VOA at an immigration office before the expiration of your first 30 days. Having a registered visa agent such as ILA can make it easy for you to extend your VOA, saving you time and avoiding overstay or fines. How to Extend Bali Visa on Arrival To extend your Visa On Arrival (VOA), you need to go to the nearest immigration office. In Bali, the 3 immigration offices are located in: Jimbaran Denpasar Singaraja The documents required to extend your stay are: Firstly, you need a passport with a validity of 6 months. Flight ticket or boat ticket to go out of Indonesia. The ticket has to be in 30 days. Receipt of the VOA you bought at the airport Key Terms for Visa on Arrival Keyword Definition Visa on Arrival (VOA) A visa issued directly at the airport upon arrival in Indonesia, valid for 30 days and extendable once for another 30 days. Validity The VOA is valid for 30 days and can be extended once for an additional 30 days (total 60 days). Cost The VOA costs IDR 850,000 (~USD 60) or USD 35 at Bali/Jakarta airports, payable in cash or by credit card. Required Documents Passport valid for 6 months, onward ticket, proof of funds (USD 1,000, rarely requested), and VOA receipt for extension. Immigration Offices Places where VOA extensions are processed in Bali: Jimbaran, Denpasar, and Singaraja. Frequently Asked
- [How to Import to Indonesia](https://ilaglobalconsulting.com/how-to-import-to-indonesia/): In the fast-paced world of international trade, Indonesia stands out as a source of economic opportunity. As the largest economy in Southeast Asia, Indonesia offers a diversified market for businesses eager to extend their perspectives. Understanding the complexities of importing to Indonesia is critical for entrepreneurs interested in the archipelago’s business prospects. Extending your business to Indonesia gives intriguing potential. Nonetheless, negotiating the country’s complicated import restrictions and procedures can be difficult. Foreign entrepreneurs seeking to establish a business in Indonesia and import goods must get an import license. Regardless of the size of your shipment, you must apply for this permission before importing products into Indonesia. With the necessary license, your products can pass through customs clearance. As a business owner, it is best to plan ahead of time, particularly when it comes to import license needs. You must also know ahead of time what type of license is appropriate for your firm and how to obtain one. What is an import license? An import license, also referred to as an API (Angka Pengenal Impor) in Indonesia, is a permit that the Ministry of Trade issues to businesses to allow them to import goods into the nation. It is essentially a means for the government to regulate and monitor the flow of imported goods, protect domestic sectors, and ensure certain standards are met. Businesses will now simply need a Business Identification Number (NIB) to begin import or export activity under Regulation 29/2021. NIBs can be obtained through the Online Single Submission (OSS) mechanism. The primary import license in Indonesia is the Importer Identification Number (API). However, depending on the nature of the items you are importing, it may be necessary to get extra licenses or permissions. Here is a list of the different kinds of APIs and any other needs that come with them: API-U (General Importer Identification Number): This license is widely used and permits the importation of finished goods for the purpose of commerce or distribution, and it necessitates the registration of a corporation in Indonesia. The API-P (Producer Importer Identification Number) license is intended for enterprises that import raw materials specifically for their own manufacturing operations. To obtain the necessary permits, one must possess an Industrial Business License (IUI) as well as an Industrial Registered License (TDP). However, before importing or exporting goods, businesses should consult the Indonesian Harmonization System (HS) code, which is used to classify and calculate tax and customs rates on all types of things. The classification is conducted due to the necessity of obtaining additional permits or registrations for certain objects. Additional licenses/permits: Specific licenses from the appropriate ministries are necessary for products like food, chemicals, pharmaceuticals, or used goods. Quota permits: restricted products subject to import quotas require a specific authorization. Product Certifications: Certain products may necessitate safety certifications, halal certificates, or other permissions relevant to the product. Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  How to Import your goods into Indonesia Businesses ought to review the Indonesian Harmonization System (HS) Code, which is used to classify each product category, prior to importing or exporting. Due to the fact that particular products might necessitate supplementary licenses or registration. In addition, the HS code is a determining factor in the rate of taxes and customs duties, in addition to any product-specific import/export regulations. Here’s the step and preparation that need to be highlighted before importation: Identify your products and determine if they need additional licenses other than import licenses. Engage with a forwarder and provide support with information about the receiver in Indonesia. Make sure the receiver has the appropriate license for your goods. Provides the receiver with as follows: Commercial Invoice (product-specific details) Bill of Lading (ownership during transport) Packing List (contents of each package) Insurance Certificate (cargo protection) Additional certificates (e.g., origin, safety data sheets) based on product requirements. Customs Declaration for Indonesia (PIB): Ensure the veracity of this vital document while collaborating with your importer. Engage with a local costume brokerage that has the license so you can pay the taxes and tariffs. Organize with a local courier to deliver your goods to the end customer or your warehouse. What are the tariffs and taxes importing to Indonesia? When importing items into Indonesia, you will incur two major costs: tariffs and taxes. Here’s the breakdown of each: 1. Tariffs: Tariffs are import levies levied by the Indonesian government based on your items’ Customs Value (cost, insurance, and freight). The tariff rate changes according to your product’s HS code, which determines its classification for customs reasons. You can get the HS code for your product online or from your freight forwarder. Indonesia’s average tariff rate is 8.1%, but it might vary depending on the commodity. Some commodities are tariff-free, while others may be subject to rates of more than 35%. Also read: How to Register Trademark in Indonesia (2025 Guide) 2. Taxes Value Added Tax (VAT): A 11% VAT applies to most imported goods, calculated on the value of the goods plus the import duty. Excise Tax: Certain goods like alcohol, tobacco, and luxury cars are subject to an additional excise tax, on top of the tariff and VAT. Luxury Goods Tax: For imported luxury goods exceeding a certain value, an additional 10% luxury tax might be applied. What are Indonesia’s Import and Export For Restricted Goods? Indonesia has a list of forbidden items for both import and export, which is intended to protect public health, safety, national security, and the environment. Understanding what your goods categorize will ease your import and export process. Here’s a
- [Strategy To Optimise Your ROI In Bali In 2025](https://ilaglobalconsulting.com/roi-bali-real-estate/): With a market having thousands of properties under construction, ILA is sharing with you the different strategies to apply in order to maximise your return on investment (ROI) while investing in the real estate market in Bali. Bali is an island in Indonesia that has attracted thousands of investors in the last few years. As legal and investment advisors, we advise investors in their investment choices. In the last few years, we have seen thousands of investors making choices between different types of investments and locations. Real estate agents and developers have promised ROI of around 15 to 20%, while investors who bought properties a few years back start to have hidden costs and realize that their investment is not bringing the expected returns. Is Bali a place with a great Return on Investment? Bali is certainly, at the moment, one of the greatest places to invest in Real Estate, even in 2024 and 2025. Indeed, in the last few years, Bali has generated some ROI at 20% or more after the Covid. However, be clear: any real estate agent promising 20% or more would be a fool today or lying. Indeed, after deducting the tax, property management cost, and marketing fee, the return on investment in Bali on the properties is around 10 to 15% nowadays for a well-located property and 7 to 12% on average. So, Bali is a place to invest? The answer is yes, as long as investors are informed correctly and choose the right property project. Despite a drop in real estate return, ROI is higher than in most other countries. Average annual rental yields range from 7% to 15%, which is significantly higher than in other countries. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licenses, and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Property investment strategy to invest in Bali in 2025 When it comes to making choices, there are several types of investment strategies. Putting on the side the leasehold versus freehold and how to get a licence to rent out a property in Bali. Long-term investments and Renting out the property This strategy is the easiest and most commonly used in Bali. It consists of leasing a property or buying a property in the long run and rent out the property on Airbnb, Booking.com, or with other travel and accommodation providers. However, ongoing management fees and high maintenance costs are required to keep the property appealing. Investors can expect returns of 14-25% annually, helping to improve their ROI real estate in Bali. This strategy forces the investor to keep the property and not flip the investment. This strategy can work for a well-located property for daily rental. One of the other options in this strategy is to rent out the property on a monthly basis. This strategy avoids high maintenance costs and management fees. Expect a return on investment from 7 to 12% Off-plan villa (purchase on plan) and Resell The strategy here is to purchase a property off-plan and finance the development of the property. Developers are calling for funds to develop the property. Off-plan villas are usually cheaper than a ready-made property investment, and they allow the investor to invest with an investment plan during the development of the property. These properties can offer a higher ROI real estate, but it’s important to note that the invested cash may not generate returns during the first year or development phase, especially until the property is ready for the market. Average Expected Return on investment from 20% to 40% after reselling Off-plan villa (purchase on plan) and Resell after 5 years Similar to the previous strategy, this option is a mix between the first strategy and the second one. As the price of freehold property is high, we advise clients to invest for 30 years, rent out the property for 5 years, buy an extension of 5 years, and resell the property for 30 years. Investors also have to consider that once the property is on the market, the villas have no review on Airbnb and Booking.com, and some discounts are sometimes necessary or a higher marketing cost. An off-plan property usually needs 2 to 3 years to really bring a return. It is however realistic to consider doubling your investment with this strategy as long as the property market is expanding. Some developers and platforms, such as TokoInvest, offer this type of investment strategy. Average expected return on investment from 50% to 130% Common mistakes in property investment in Bali When it comes to investing in Bali, some investors quickly accept some contracts without checking the terms and conditions. Wrong project with the wrong strategy A strategy works with a good project, and a good project works with a good strategy. Some strategies can match some projects and vice versa. Unfortunately, it is common nowadays to see investors investing in projects such as Lombok or Tumbakbayu and applying a daily rental strategy. Developers are selling some projects off-plan, letting you think the property is close to the beach, while in Bali, it takes 30 minutes to go to the beach from the property. Property management companies Unexperienced property management has emerged in the last few years. It is unfortunate to see property management companies in Bali taking 30% from the clients while a good rate should be between 15 to 20%. Some companies, such as Pulse Villa Management or Bukit Vista, usually offer a complete service at a reasonable price. Developers offering property management If there was a strategy to avoid it would be this one. Indeed a lot of developers are trying to offer the property management services after selling the property. However, most developers have no experience managing properties. Some companies
- [How To Register A Trademark In Indonesia ](https://ilaglobalconsulting.com/register-trademark-indonesia/): As entrepreneurs or business owners, we tend to forget about one small thing when the business is fast growing. If your business is growing and your brand is becoming well-known in the market, it is essential that you register a trademark, whether you are selling a service or a product. Therefore, companies that want to maximize the Indonesian market have to trademark their goods and brands to guarantee the protection of their company’s interests. Want to know more about register a trademark in Indonesia? Let’s dive deep together. What is a trademark? A trademark is a sign that can be graphically displayed in the form of an image, logo, name, word, letter, number, colour arrangement, in two-dimensional and/or three-dimensional form, sound, hologram, or a combination of two or more of these elements, to distinguish goods and/or services produced by individuals or legal entities in the trade of goods and/or services. [Art. 1 Paragraph 1 Trademark Law-2016] Generally, trademark registration aims to protect names, logos, and symbols that set your company apart from competitors or others. Read also: Contracts and Agreements in Bali: Legalities Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  What is the benefit of using a Trademark? The usage of a trademark serves as: A method of identification that enables individuals or organizations to differentiate their goods or services from others. An effective promotional tool that allows for easy product promotion through the mention of its trademark; Ensuring the quality of its goods and clearly indicating the origin of the goods/services produced are important aspects to consider. What can we gain from a Trademark registration? There are a few benefits you can gain when you register a trademark, such as the following: Providing evidence to establish the rightful owner of a registered trademark;  Justifying the rejection of a trademark application that is identical or substantially similar to another party’s application for similar goods/services;  Establishing the grounds for preventing others from using a trademark that is identical or substantially similar to another trademark in circulation for similar goods/services of yours. Legal security for registered trademarks lasts for 10 years from the date the application for registration is received, but this trademark protection can be extended. Who can register a trademark? According to Indonesian Trademark Law No. 20, 2016, a trademark can be applied to by anyone as long as it complies with the requirements; in short, Indonesian citizens, foreigners, and legal entities can apply for a trademark. Read also: Your essential guide for your company registration in Bali Indonesia How do I register a trademark in Indonesia? Trademarks must be filed with the Directorate General of Intellectual Property Office. Here’s what you need to prepare before submitting for IP registration in Indonesia: Logo, name, or picture of your service and products. A clear description of goods and/or services is to be registered for each class in accordance with the brand classification. Applicant details, such as legal entity details or passport or Indonesian ID card, if it’s a person. Application form and account in the Directorate General of Intellectual Property Office. How Long Does It Take to Register a Trademark in Indonesia? It will take 15 working days to submit and undergo formality checks. After passing document inspection, a trademark application in Indonesia will go through a substantive examination, which lasts 2 months. After that, the certificate will be issued within 150 working days. Ideally, a trademark certificate will be issued within 8 months. The large number of applications for trademark registration in Indonesia means that implementation can take up to 2 years. Furthermore, it is crucial to screen and do due diligence on your logo, name, and colour prior to submission to avoid rejection. Last but not least, it is important to understand which classification you fall into.  For more information and assistance on trademark registration, you can book your consultation with ILA.
- [Step-by-Step Guide to Setting Up a PT PMA for Property Investment in Lombok](https://ilaglobalconsulting.com/setting-up-a-pt-pma-for-property-investment-in-lombok/): Lombok Tengah and especially Kuta Lombok have seen the number of listings multiplied by 3 on AirBnb since 2022. This trend indicates a growing offer on the market while an average occupancy rate stabilizes or is slightly below 2023 during the year. The number of people making investment in Lombok is growing alongside the increasing number of visitors. However, with more properties under construction, planning the investment wisely and choosing the best location, such as between Selong Belanak and Kuta Lombok becomes crucial. Setting up a PT PMA is a prerequisite for any person looking to invest as a foreigner following the agrarian law, as individuals are not allowed to own land in Indonesia. This guide is for foreign investors and developers looking to set up their investments and properly optimise their taxes. Why a PT PMA is Essential for Foreign Investors There are several reasons why a foreigner should invest in a property through a PT PMA. The two main reasons are legality and tax. On the legal side a foreigner non-resident cannot own a land title in Indonesia and by agrarian law a foreigner cannot even lease a property despite some notary accepting it.  Land Purchase and Building permit The PT PMA is the simplest way to secure land or property for your investment in Lombok and other Indonesian regions. It enables the acquisition of freehold titles through a sales and purchase agreement (AKTA JUAL BELI; AJB) and grants a right to build, known as HGB (Hak Guna Bangunan). This land title is necessary to obtain a building permit known as PBG under the company name and not be dependent on the land owner or using a nominee in Indonesia. Renting out the property The PT PMA allows the foreigner to obtain the licence to rent out properties under certain conditions and obtain a licence such as Hotel or Apartment Hotel. The licence is called NIB and the PMA can obtain a Sertifikat Standard. Tax payment and efficiency While a foreigner cannot directly obtain a tax identification number, the PT PMA simplifies investment in Lombok by enabling access to a local tax number (NPWPD), a tax identification number (NPWP), and an electronic filing identification number (EFIN). Those tax numbers are necessary to report the tax to the local tax office when the property is rented out or when the company has to withhold the tax on services the PT PMA pays. Flexibility The PT PMA allows different investors to enter an investment by making different classes of shares or selling part of the business without having to resell the property or business. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Key Requirements to Establish a PT PMA Authorized Capital The authorized capital of a PT PMA is equal to 10 billion IDR. A PT PMA needs to have at least 2 shareholders, individuals or companies, and 1 commissioner with at least 1 director. Shareholders and Directors Shareholders can get an investor KITAS if their total shares are worth at least 10 billion IDR. While shareholders may also serve as directors or commissioners, this isn’t mandatory. Consult us or your tax advisor to determine the ideal share percentage and investment approach, as personal or corporate investment in a PT PMA affects dividend withdrawals and tax rates. Business classification A company in Indonesia needs to select one or several business classifications. The business code will vary depending on whether the company operates as developer or focuses on renting out properties for commercial purposes. We advise you to consult us to know more on the set up. However it is important to note that a PT PMA cannot be 100% under foreign investment for any consulting in construction or acting as contractor despite what some PT PMA promote themself as service provider. Step-by-Step Process to Set Up a PT PMA in Lombok Here are the steps to set up a PT PMA in Lombok: Identifying the business code and KBLI related to your activity Define a name of at least 3 words with 3 letters Select a commercial address in Lombok to register (ILA can assist) Deed preparation (AKTA) known as Article of Association Obtention of the Ministry of Law and Human Rights (SK or Ministry Approval) Tax card registration (NPWP) Business licence (NIB) and Sertifiktat Standard Bank account opening Timeline and Costs Setting up a PT PMA for investment in Lombok can be completed within five working days, ensuring a swift process to establish your business presence. The cost varies from the address selected to the business licence if a certificate standard is necessary to be approved, such as Hotel, or Broker. Steps to buy a property in Lombok with a PT PMA Once the PT PMA is set the process to purchase a freehold property is as follows: Select the land and make an offer (do not pay without making the offer and do not pay the seller directly) Conduct due diligence on the land and property Check all authorization and building permit (PBG) Sign a lease agreement or a PJB and AJB Pay the notary and the related tax Process with the changes of the land certificate Also Read : How To Establish A PT PMA In Bali FAQs Can I own land directly through a PT PMA? Yes it is possible to own land under a PT PMA. They will convert the land title into HGB, lasting 30 + 20 + 30 years. Then, you can convert the land title to SHM anytime to resell it as a freehold. How long does the setup process take? The process takes 5 days What taxes apply to PT
- [Financing and mortgage in Indonesia: Discover how to get a loan as a foreigner in Bali](https://ilaglobalconsulting.com/how-to-get-a-loan-as-foreigner-in-indonesia-and-bali/): When it comes to purchasing a property in your home country, several financing sources and acquisition methods are available. However, when expanding and diversifying your investment abroad, the solutions are more limited but not impossible. Indeed, foreigners can secure a loan in Bali and put a mortgage on their property. Foreigners can secure a loan in Bali to buy property, but not directly as individuals instead, they need to establish a local company (PT PMA) that allows legal ownership under HGB and access to financing regulated by OJK. Typically, lenders provide 50–70% of the property’s value with monthly repayments based on the investor’s profile, though only freehold properties can be mortgaged since leaseholds are not eligible as collateral. With proper due diligence, setting up a company, and signing as its director, foreigners can leverage their investment to expand their property portfolio in Bali safely and legally. Leveraging Your Investment in Indonesia In contrast to a leasehold, an investor buying a freehold becomes the owner of the property. This distinction changes the perspective of the investment, allowing you to leverage your investment and acquire a second property without having to spend cash. Example: Consider John, who bought a leasehold for 25 years at 100k and still has 25k to invest. While John has to wait 15 years to buy another property, David, who acquires a freehold at 100k, can put a mortgage on his property, borrow 75k, and buy a second property immediately. In 15 years, David can reproduce the same mechanism, having four properties, while John may only own one property with 10 years left on the lease, possibly able to lease a second one. In 15 years’ time, David can have 4 properties in ownership, while with the leasehold, John will just have 10 years left on one property and maybe be able to lease a second one. Considering that the price will have increased, David will have more than triple its investment compared to John. Also read: Freehold Vs. Leasehold In Bali Property: Which One Better? Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Your Guide to Getting a Loan in Indonesia and Bali   Here are some of the questions that you may have on how to get a loan in Indonesia How can I get a loan in Indonesia to buy a property? Banks in Indonesia are rarely willing to loan money to foreigners due to the risk of them returning to their home countries. However, by setting up a company, foreigners can establish an Indonesian entity with legal representation and identity, enabling them to borrow money. How much can I borrow to buy a property in Indonesia or Bali? Foreigners can borrow 50% to 70% of the value of the property. Will this loan be under Indonesian regulation? OJK regulates bank and financial transactions in Indonesia. By choosing ILA, all transactions are safe and under the regulation of OJK, providing Indonesian and customer regulation protection. How can ILA help me get a loan in Bali and buy a property? ILA Global Consulting can assist throughout the process by checking the land certificate for eligibility and ensuring secure leverage of your investment to obtain a loan. Can I get a loan for a first property acquisition in Bali? Yes, depending on your investor profile, ILA’s experts will analyze your profile, assets, and project. How much will the interest rate be to buy a property? The interest rate will be a monthly rate based on the investor’s profile, with the borrower making monthly payments to reimburse the loan. Can I get a loan on a leasehold property in Bali? No, as a leasehold is not owned, lenders cannot recover their money on a leasehold and resell something the borrower doesn’t own. Is this true? Why do other companies not offer this service? Yes, for years, foreigners faced difficulties borrowing money for property in Indonesia. With companies now able to own property under HGB, opportunities have changed. Traditional banks may not be accessible, but ILA and other market actors offer different solutions, adhering to Indonesian regulations under OJK’s supervision. How long does it take to get a loan, and what are the steps? Discuss your investor profile, project, and project value with our consultant. Check the land title and perform due diligence, taking a few days to identify any existing mortgages. Assist in creating your company, taking 3 days to 1 week, requiring your passport and signatures. Once your entity is created, you can legally sign as the director of the company for loan document processing. Is it secure to invest in a property in Bali or the rest of Indonesia? Security lies in following procedures and rules. Never rush decisions; review legal documents, conduct proper due diligence, and involve third parties. Notaries, real estate agents, and sellers all have an interest in a smooth transaction. Timing is crucial, but patience and a systematic approach are key. Key Terms for Loan in Bali Keyword Definition OJK (Financial Services Authority) The Indonesian regulator that oversees banks and financial transactions, ensuring safety and compliance for borrowers and lenders. ILA Global Consulting A consulting firm that assists foreigners in obtaining property loans in Indonesia, including due diligence and company setup. HGB (Right to Build) A land title in Indonesia that allows companies, including foreign-owned entities, to legally own and use property. Investor Profile An evaluation of a borrower’s financial situation, assets, and project plan to determine eligibility and interest rates for a loan. Leasehold Property A rental/lease arrangement where the borrower doesn’t own the land; thus, banks/lenders don’t accept it as collateral for a loan. Can you help us review legal
- [Indonesia Minimum Wages increase by 6.5% in 2025](https://ilaglobalconsulting.com/indonesia-minimum-wage-increase-2025/): Jakarta, Bali and Lombok have followed the recommendation from the Minister of Manpower (Permenaker) Number 16 of 2024 to increase the salaries by 6.5%. The decision is following the economic growth and inflation rate currently happening in Indonesia. The wages in Indonesia follow Permenaker’s recommendation, which is a decision at the province level. Types of Minimum Wages in Indonesia Upah Minimum Provinsi (UMP) is the minimum provincial wage in Indonesia. This means that no company can offer a lower salary than this amount on a monthly basis. Upah Minimum Sektoral Provinsi (UPMSP) or Provincial Sectoral Minimum Wage is the minimum wage the sector can offer an employee in Indonesia. This UPMSP applies, for example, to the tourism sector or a specific branch. Bali applies, for example, a specific minimum wage in the tourism sector. Upah Minimum Kabupaten/Kota (UMK) or Regency/City Minimum Wage is decided at the Kapubaten level or city level. This amount is usually above the UMP and cannot be below it. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Jakarta minimum wage for 2025 The Provincial Government of the Special Capital Region of Jakarta (Daerah Khusus Ibukota Jakarta – DKI Jakarta) has set the Provincial Minimum Wage, the UMP, for 2025, at Rp. 5,396,761 per month, reflecting a 6.5% increase compared to the 2024 UMP. This new wage will take effect on 1st January, 2025. Bali minimum wage for 2025 The minimum wage for Bali in 2025 (Bali’s UMP) will rise to Rp 2,996,500 compared to Rp 2,813,672 in 2024, while the UPMSP will increase to Rp 3,025,000. The Kapubaten of Bangli, Klungkung, Karangasem, Buleleng, and Jembrana are aligned with the provincial UMP. Denpasar, Gianyar, Badung, and Tabanan will publish their rate from December 18th 2024. Lombok Minimum Wage for 2025 The minimum wage in Lombok will increase by 6.5, following the recommendation of the central government to reach Rp 2,610,000 from Rp 2,450,900. Each Kapubaten will publish their own rate no later than 18th December as well. What business owners need to do Business owners need to increase the minimum salary if the current wage is below the UMP in the province where they have their business or where the worker is registered. We recommend discussing with other employees and being prepared to have requests from employees to have their salary increased, as a 6.5% increment causes some employees to be closer to the minimum wage. Having a minimum wage increase usually causes employees to negotiate their salary at the end of the year. Business owners have until 1st January to comply with the regulations and implement the payroll by the end of January. Contact us to learn more or handle the changes with your payroll and see if you need to pay tax on it now. Also read: Taxation and How to Work Legally in Bali Remotely
- [Taxation and How to Work Legally in Bali Remotely](https://ilaglobalconsulting.com/taxation-and-how-to-remote-working-in-bali/): Bali and Lombok attract digital nomads and remote workers from all over the globe, thanks to their dreamlike scenery and excellent facilities. For those considering remote working in Bali, the region offers a unique blend of lifestyle and practicality. Entrepreneurs, foreign business owners, and employees can relocate to Indonesia, either solo or with their families, and enjoy opportunities to work remotely with potentially lower tax obligations. How to Work Legally from Bali as Digital Nomads or Remote Workers Indonesian immigration is granting remote workers visa E33G to workers wishing to work from Bali or other places in Indonesia. This visa is valid for 1 year and is a multiple entry visa. The worker can obtain a temporary residency in Indonesia for 1 year and can renew its visa. With this visa, the applicant is allowed to engage in remote working in Bali for a company based outside Indonesia, provided they do not generate income within Indonesia. Here’s the revised text with added transition words: The application needs to be submitted through ILA or immigration and, importantly, must meet specific requirements. Fortunately, ILA can assist with fulfilling these requirements, applying, and guiding you through the process. The visa allows the worker to sponsor and move to Bali and the rest of Indonesia with their family. Moreover, the digital nomad can receive the visa within just 5 working days after payment. The requirements to apply for the visa: Working contract showing 60 000 USD salary per year Bank statement showing at least 2000 USD or equivalent Passport copy Picture of the applicant We recommend contacting us if you have difficulty with some requirements and not sure if the visa is the most suitable for your situation. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Taxation for Remote Workers in Indonesia The taxation while having a stay permit or living in a different country is one of the biggest concerns for the applicant or before applying for the visa. Indonesia is a country with low taxation in general on corporate income (PT PMA) for the one who wish to set up a company. For personal income, Indonesia has a progressive tax rate that can lead to high tax exposure for employment tax. Taxable income for 2023 (IDR) Tax rate (%) Up to IDR 60 million 5 Above IDR 60 million to IDR 250 million 15 Above IDR 250 million to IDR 500 million 25 Above IDR 500 million to IDR 5 billion 30 Above IDR 5 billion 35 Here’s the sentence rewritten in active voice: The government applies a final tax rate instead of the progressive tax rate to certain taxes. For instance, it taxes a KITAS holder with a remote worker KITAS at 10% on property sales of a leasehold property, exempting them from the progressive rate. Taxation in Indonesia can be complex, so we recommend consulting us to understand how income would be taxed for remote working in Bali. A remote worker holding a KITAS must apply for an NPWP, Indonesia’s tax card. This card is essential for declaring taxes at the fiscal year’s end, typically between January and March. Also Read : Employer Of Record: How To Hire Indonesian Remotely A remote worker is taxed on worldwide income, but the double tax treaty deducts taxes already paid from those owed in Indonesia. Some KITAS holders do not declare their foreign tax to avoid taxation in Indonesia, which is technically illegal. However, Indonesia offers tax exemptions for foreign workers in specific job positions if they meet certain criteria. We recommend you consult us to know if you meet the requirements.
- [How to Open a Spa in Bali and Lombok](https://ilaglobalconsulting.com/how-to-open-a-spa-in-bali-and-lombok/): People all over the world love Bali and Lombok as places to relax and recharge. Counted for beautiful beaches, natural surroundings, and rich cultural legacy, these islands draw millions of visitors looking for an escape from their hectic lives. Beyond being popular tourist destinations, they are ideal locations for a thriving spa business in Bali, thanks to their world-class treatments and leisure activities. Opening a SPA in Lombok or Bali presents both profitable business opportunities and the chance to offer transforming experiences, regardless of what draws people to the calm beauty of either island or the active tourism centers. Here are some basic ideas and insights if you are thinking about starting an SPA in Bali or Lombok, including how ILA Global Consulting may help you at every level. Why Bali and Lombok?  With millions of people yearly looking for luxury and refreshment, Bali’s and Lombok’s tourist business is explosive. Supported by yoga retreats, lavish resorts, and traditional Balinese and Sasak healing methods, the island’s wellness reputation has produced an abundant market for spa treatments. Starting a spa in Bali here lets you reach an audience of residents who value leisure and self-care as well as health-conscious visitors; even the market grabs not only an international tourist but also a domestic tourist.  Registering a Company In Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Understanding the Culture  The cultural and natural history of Bali and Lombok  greatly impacts the spa services. The foundation of a spa business in Bali lies in offering authentic local experiences, such as traditional Balinese massages, Sasak massages, herbal treatments, and aromatherapy. Tourists and locals alike value authenticity, so using Balinese techniques and natural elements like volcanic clay, coconut oil, and herbs will make your spa unique. This timeless healing practice blends acupressure with fragrant oils and traditional methods, creating a unique and rejuvenating experience for clients. Many individuals so like receiving Balinese massages at spas nowadays. Integrating the distinct wellness traditions of both islands into your offerings can help your spa stand out. Choose the Right Location The success of your spa largely depends on its location. Look for serene settings ideal for relaxation or bustling tourist hotspots. Bali offers vibrant hubs such as Seminyak, Ubud, Uluwatu, and Canggu, while spa in Lombok options thrive in peaceful areas like the Gili Islands and Kuta Lombok. Choosing the right location will significantly influence your client base and the overall ambiance of your business. Ubud is famous for the landscape and retreat, Seminyak for high-end spas,  and Canggu for young people that have a healthy consciousness. The Gili Islands and Kuta Lombok offer spa businesses unique benefits. Kuta Lombok attracts tourists with its pristine beaches, rising bohemian attitude, and real culture, while the Gilis are popular with eco-friendly, tranquil, and marine-inspired relaxers. Register your Business  After choosing the right location, now it’s time to start a business.  In Indonesia, which requires compliance with several regulations. Here’s a breakdown of the key legal aspects: Establishing a Foreign Investment Company (PT PMA) is necessary for foreign investors; SPA activity is open 100% for foreign ownership. This PT PMA can be open with just two shareholders. While the SPA is owned by a foreign investor, you might also consider having a local partner to be your general manager that can help with day-to-day business operations. However, if you are planning to hire a foreigner as your staff, make sure they get the working permit (ITAS) as well. You must obtain licenses and permits to operate after establishing the company. You will need a SPA license, which is known as Standard Certifikat (Sertifikat Standar). In addition to this, you also need an environmental license, and to elevate your business to the top, the Ministry of Tourism must certify your SPA.  SPA is also considered a wellness centre that allows you to do water therapy (hydrotherapy), aromatherapy, massage therapy, herbal therapy, foot spa, hand spa, hair and scalp spa, facial spa using machine or tools, heat therapy (thermal therapy), and physical or breathing exercises. Also read : How To Start A Business In Bali – 7 Best Business Opportunities In Bali Everything Else that You Should Do  After you have decided on the location and the structure of your firm, there are further things that you need to complete. Securing your location by having a proper contract, either you lease or buy the place. Hiring staff: other than hiring staff, you need to also secure the contract to be compliant with the labour law to ensure a smooth process.  Designing your SPA Marketing your SPA Starting a spa in Bali and Lombok is an exciting opportunity to create a wellness sanctuary in two of Indonesia’s most captivating destinations. Success starts with thoughtful planning, whether you’re drawn to the tranquility of the Gili Islands, Kuta Lombok’s surf vibe, or Bali’s rich traditions. In order to focus on your business, you can reach out to ILA for a consultation, starting with securing your location, getting your business registered and obtaining all the necessary licenses. 
- [Tax Treaty and Tax Optimization with Indonesia](https://ilaglobalconsulting.com/tax-treaty-and-tax-optimization-indonesia/): Indonesia’s tax treaties help prevent double taxation and support international investment. Tax Treaty Indonesia agreements provide opportunities for businesses to optimize taxes while complying with regulations. Leveraging these treaties ensures smoother cross-border transactions and enhances financial efficiency. Withholding Tax System in Indonesia For companies and individual taxpayers dealing with or in Indonesia, the tax rate to withhold is always an important question. Despite it being uncommon in most countries, the payer is responsible for withholding the tax and paying the tax to the Indonesian tax office if both parties are companies. When a transaction involves a company and an individual, it is the company’s responsibility to withhold the tax. Additionally, this ensures compliance with applicable tax regulations. When it comes to payment to non resident, the taxpayer has to withhold a tax of 20% (Article 26). When payments are made to Indonesian taxpayers, the applicable tax rate ranges from 2–15% (Article 23). Additionally, if the taxpayer acts as a VAT collector, the company may need to charge VAT—set at 11% in 2024 and increasing to 12% in 2025—to ensure compliance. Tax Treaty Indonesia agreements include specific tax rates for services provided by certain countries. For example, a withholding tax of 5% applies to services from Switzerland and the UAE, 7.5% from Germany, 10% from countries like Cambodia, India, and Luxembourg, and 15% for Pakistan. Indonesia Tax Treaty Data with Other Countries Country with Double Tax Treaty with lower Withholding Tax Rate Country Parent company Holding Interest Rate Royalties Algeria 15% 15% 15% 15% Armenia 10% 15% 10% 10% Australia 15% 15% 10% 15% Austria 10% 15% 10% 10% Bangladesh 10% 15% 10% 10% Belarus 10% 10% 10% 10% Belgium 10% 15% 10% 10% Brunei 15% 15% 15% 15% Bulgaria 15% 15% 15% 10% Cambodia 10% 10% 10% 10% Canada 10% 15% 10% 10% China 10% 10% 10% 10% Croatia 10% 10% 10% 10% Czech Republic 10% 15% 10% 12.50% Denmark 10% 20% 10% 10% Egypt 15% 15% 15% 15% Finland 10% 15% 10% 10% France 10% 15% 10% 10% Germany 10% 15% 10% 10% Hong Kong 5% 10% 5% 10% Hungary 15% 15% 15% 15% India 10% 10% 10% 10% Iran 7% 7% 7% 10% Italy 10% 15% 10% 10% Japan 10% 15% 10% 10% Jordan 10% 10% 10% 10% Korea (North) 10% 10% 10% 10% Korea (South) 10% 15% 10% 10% Kuwait 10% 10% 10% 5% Laos 10% 15% 10% 10% Luxembourg 10% 15% 10% 10% Malaysia 10% 10% 10% 10% Mexico 10% 15% 10% 10% Mongolia 10% 10% 10% 10% Morocco 10% 10% 10% 10% Netherlands 10% 15% 5% 10% New Zealand 15% 15% 15% 10% Norway 15% 15% 10% 10% Pakistan 10% 15% 10% 15% Papua New Guinea 15% 15% 15% 10% Philippines 15% 20% 15% 15% Poland 10% 15% 10% 10% Portugal 10% 10% 10% 10% Qatar 10% 10% 5% 10% Romania 12.50% 15% 12.50% 12.50% Russia 15% 15% 15% 15% Serbia 15% 15% 10% 10% Seychelles 10% 15% 10% 10% Singapore 10% 15% 10% 10% Slovakia 10% 10% 10% 10% South Africa 10% 15% 10% 10% Spain 10% 15% 10% 10% Sri Lanka 15% 15% 10% 15% Sudan 10% 10% 10% 10% Suriname 15% 15% 10% 15% Sweden 10% 15% 10% 10% Switzerland 10% 15% 10% 10% Syria 10% 10% 10% 10% Taiwan 10% 10% 10% 10% Tajikistan 10% 10% 10% 10% Thailand 15% 20% 10% 15% Tunisia 12% 12% 12% 15% Turkey 10% 15% 10% 10% Ukraine 10% 15% 10% 10% United Arab Emirates 10% 10% 5% 10% United Kingdom 10% 15% 10% 10% United States 10% 15% 10% 10% Uzbekistan 10% 10% 10% 10% Venezuela 10% 10% 10% 10% Vietnam 15% 15% 10% 15% Zimbabwe 10% 10% 10% 10% To apply the tax rate, the tax office must approve the justification that the receiver is the actual beneficial owner. Moreover, a DGT form must be submitted to comply with tax treaty Indonesia rules and avoid a requalification to the 20% rate. This rate applies specifically to certain services or revenue types and does not extend beyond the outlined scope. Also Read: Comprehensive Guide For Your Tax In Indonesia Never Worry About Taxes and Accounting Again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Final Tax for Companies in Indonesia Companies paying withholding tax under the article 4 are subject to a final tax.  Income Tax rate (%) Lease of land or building and rental income 10 Income from property sales (Freehold not lease) 2.5 Contractor (depending on the licence) 1.75/2.65/4 Consulting company in construction (depending on the licence) 3.5/6 Contractor and Consulting combined (depending on the licence) 2.65/4 Turnover received by companies with annual income not exceeding IDR 4.8 billion in one fiscal year (applicable for 3 years) 0.5 Different tax rates may apply to bonds, cryptocurrency, or financial products. Therefore, we strongly recommend reaching out to us to determine which tax rate is applicable or needs to be withheld in your specific case.
- [Guidelines On How To Find A Property In Lombok](https://ilaglobalconsulting.com/find-property-in-lombok/): Lombok is promoted as the new place to invest in property since Bali has been overdeveloped in the last few years. However, finding the right property in Lombok is not as easy as it could be in Bali. Although it could appear at first sight, Lombok is complex to access. Actors are less welcoming than Bali when it comes to closing a deal, and getting the right information can be confusing for a buyer as sellers are more than Bali tell you everything is possible. Is Lombok a new Eldorado or a market pushed by developers? How to find a good property in Lombok. Return on Investment on Lombok Property Lombok is a booming market currently pushed by developers who are promoting several beautiful projects. In comparison, in Bali, the projects were pushed just after COVID-19 by the demand for accommodation due to a lack of supply, as a lot of people were moving to Bali to visit the Island of Gods. Projects in Lombok are certainly profitable in the long term. However, investors have to be cautious about where and how to select their investment or where to develop their project. The breakeven point can vary depending on how the market is going to grow in Lombok. Indeed, if the number of projects grows faster than the demand for holiday homes, with Lombok being more seasonal, the Return On Investment for buyers can take time. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. The best strategy to invest in Lombok There are several ways to approach a property market with high potential. Below, we describe the different strategies currently applied by actors in Lombok in the real estate market. Acting as a developer in Lombok Often, developers are the ones getting the highest margin in real estate but also assuming the biggest risk. This strategy is to buy land, build a house and resell the house. In his strategy, the investor has to manage the construction by hiring contractors. This strategy has a high return as the developer takes margin on several aspects, from the land value appraisal increasing to the property value. Developing a project in Lombok can take 1 to 2 years, depending on the size of the project.  Land Banking in Lombok Buying land at the right time and not developing it can be a good bet in a growing property market. As the demand for land increases, several investors will need land to develop hotels, villas, restaurants, and commercial buildings. This strategy is beneficial for people not looking for immediate cash flow. Land value in some circumstances can be expected to double or triple depending on the location. Renting out a villa or hotel in Lombok This strategy is the easiest way to apply. The investor buys a villa already developed or off-plan (in construction) and rents out the villa on Airbnb, booking.com, Agoda, etc. This strategy brings a good ROI in a market pushed by demand and when other projects are not yet finalised before the competition arrives. However, this strategy involves some structure to ensure some legalities, as renting out as an individual is illegal. Investors need to go through different structures and ensure to optimise it for better taxation. Also read: 7 Real Estate Investment Mistakes to Avoid in Bali & Lombok Where to find a property in Lombok Finding a property in Lombok is not as easy as in Bali. There are different actors promoting lands, and Lombok is sometimes confusing to buyers. Unfortunately, a few brokers are not yet professionalised, and it is not rare to see several brokers overlapping each other and not having the land in their listing but getting it from another person. We recommend ensuring the broker is in direct contact with the landowner and ensuring this person has all the papers and certificates regarding the land before entering into any deal. Another suggestion is to work with professional sellers or brokers who follow proper rules. One of the red flags is usually to hear that Lombok is different. Lombok real estate and property development has the same rules as the rest of Indonesia. It is usually a sign of forced sales leading to later complications. Work with a proper and licence agent Work with somebody having all the documentation regarding the property Do not pay any fee before any agreement or contract and having seeing the paper of the property Work with somebody in Lombok who do not push the investment with the timing and say there is a lot of buyers (we all know this technique) Some professional agencies are located in Lombok and have a great understanding of the place. Despite receiving commission from the sales, they follow correct procedures and normally do proper due diligence on the product. Location to invest in Lombok As in every country or property market, the investment has to be at the right place at the right time. While the Mandalika area is a great place to invest with Kuta Lombok, Sekotong, and Selong Balanak, each piece of land in each area doesn’t have the same value. All those locations are close to the beach, but the infrastructure with access to facilities and utilities can vary from one land to another. Obviously, land close to the beach, beachfront, or on the hill is a good location. However, it is important to check a few things. While a top hill provides a great sea view, road access management and utilities can lead to several issues in getting the water and all the supplies.  Conduct a proper due diligence and inspection In order to confirm the location, there are several factors to
- [Payroll Management in Indonesia](https://ilaglobalconsulting.com/payroll-management-in-indonesia/): Having a business and employees involved to handle payroll every month. Payroll management in Indonesia can be complicated due to some mode of calculation. There are different aspects to take into consideration. PAYROLL LEGAL ASPECT A person is considered as an employee and under payroll if this person has a working contract under the company. Each employee under the company needs a working contract PKWT or PKWTT. Those 2 types of contract are fixed-term contracts and indefinite-term contracts. The working contract defines the day of the payroll. The common practice is to pay the salary the first day following the month worked by the employee. The salary has to be paid on an Indonesian Bank account in Indonesian Rupiah. MINIMUM WAGE IN INDONESIA Minimum wage in Indonesia is defined by Kapubaten at the local level in each province. For example the minimum wage in Jakarta (Rp5,067,381 )and in Bali can be different but also between each Kapubaten in Bali. Badung Regency: Rp 3,318,628 Denpasar City: Rp 3,096,823 Gianyar Regency: Rp 2,928,713 Tabanan Regency: Rp 2,913,164 Jembrana Regency: Rp 2,813,672 Karangasem Regency: Rp 2,813,672 Klungkung Regency: Rp 2,813,672 Bangli Regency: Rp 2,813,672 WORKING HOURS IN BALI AND INDONESIA Indonesia authorizes employers to fix the working hours in two possible ways: either 7 days a week for 7 hours a day or 5 days a week for 8 hours a day. Additionally, the maximum authorized working hours must not exceed 40 hours per week. Employers are authorized to request overtime from their employees with a maximum of 4 hours per day (18 hours per week). To compensate employees for their extra hours, the employer must pay the first hour 1.5 the hourly wage and 2 times the hourly wage for the overtime. Sick Leave Indonesia is very protective of employees, and sick employees can cost companies a lot. Employees who are sick or injured are forced to pay sick leave if the employee can provide a medical certificate. Employers can request a counter inspection.  First 4 months: 100% of wages. 5th to 8th month: 75% of wages 9th to 12th month: 50% of wages After 1 year until termination: 25% of wages Maternity Leave and Paternity leave Pregnant employees can get 3 months of fully paid maternity leave (1.5 months before giving birth and 1.5 after).  Fathers can also get 2 days of paid leave for the birth of their child. Employees  are also able to get paid leaves for the following: 2 days for the circumcision or baptism of their child. 2 days for their child’s wedding. 2 days for the death of their child. Annual leave Indonesia is one of the countries with the highest number of public holidays. Each religious festive holiday is represented in the calendar. Employers in Indonesia must provide employees with at least 12 days of paid annual leave each year, in addition to all public holidays. The 12 days are granted after completing one year in the company. The number of leave days can be more than 12 days if the employer states it in the contract. Employees can also get additional leave days if they have spent more than six years in the company. Seventh year of service: One month of leave. Eighth year of service: Another one month of leave 13th Salary THR In Indonesia, payroll management must account for unique cultural and legal aspects, such as defining an employee’s religion, which is necessary for calculating THR (Tunjangan Hari Raya). Religion is mandatory in Indonesia and influences employee benefits, including the 13th-month salary paid during major religious celebrations. Employers must integrate these factors into their payroll management Indonesia to ensure compliance and employee satisfaction. The full month is payable only if the employee has been in the company for 1 year (proportionally to the number of months in the company before one year). Muslims Eid Ul Fitr Christians Christmas Hindus Nyepi Buddhists Vesak Confucians Chinese New Year Also read: Working contract in Indonesia: A guide for your agreements Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. CONTRIBUTION AND TAX IN PAYROLL MANAGEMENT INDONESIA Indonesia requires employers to withhold tax and salary contributions before paying the employee the net. Employers must negotiate the Gross salary with their employees as the contribution can change depending on the employee’s marital status and the number of kids. BPJS Kesehatan – Health insurance Benefit Employer Contribution Employee Contribution Health Insurance 4% (capped at IDR 480,000) 1% (capped at IDR 120,000) BPJS Ketenagakerjaan – Pension and retirement Benefit Employer Contribution Employee Contribution Pension Plan on salaries up to IDR 10,042,300 2% 1% Retirement Savings 3.70% 2% Effective Tax Rate and Income Tax Since January 1, 2024, the Indonesian government has simplified the calculation of income tax Article 21 by introducing three categories, each with an effective tax rate applied. Payroll management in Indonesia must consider varying tax rates for different employee types. The tax system treats monthly salaried employees differently from daily or non-monthly workers, such as non-permanent employees. Proper classification and understanding of these distinctions are crucial for effective payroll management in Indonesia. Moreover, ensuring compliance with tax regulations is key to maintaining smooth operations and avoiding potential legal issues. The calculation applies from January to November while the employer still needs to calculate the Article 21 applicable to an individual taxpayer at the end of the year. Category A:  Single Employees The system applies the highest ETR because it excludes additional allowances for dependents or a spouse. Unmarried and without dependents. Category B: Married Employees (No Dependents) Receives an adjusted ETR to account for the spouse. Includes employees with a legally recognized spouse but no dependents. Category C:
- [Learn how to become a contractor in Bali and Lombok](https://ilaglobalconsulting.com/become-a-contractor-in-bali-and-lombok/): In Bali and Lombok, tourism businesses claim fame. Property developments are in progress. Hotels, resorts, and villas can be found in every corner of the city; small or large projects are tempting to build. This has sparked interest in becoming a contractor in Bali, but many are unaware of the strict regulations and requirements within the construction industry. The specific guide will provide the main steps and peculiarities of working in these culturally and economically lively regions. Construction Market Overview The construction sector in Bali and Lombok is not just growing—it’s thriving! Despite the highly regulated nature of the construction industry, it remains one of the most promising business opportunities. Scaling from small to big industries, private or government projects, both are as much as interested to do.  Start your investment journey in Indonesia the right way With so many diverse investment opportunities in Indonesia, you need to make sure you’ve got the right setup to do business here.  Get help from our team of experts to register your company, navigate the real estate market and secure your visa and stay permit. Schedule a free call with us today to plan your next steps with ILA. Types of construction services. Building a resort, hotel, or even a small house requires preparation. We start by making a drawing, managing the budget, and lastly, building. This process type, known as construction, can be classified into several categories: Construction Consultation Services  Construction Work Service  Integrated work between construction, consultation, and work service  Construction Consultation Services Companies that involve tasks such as drafting, project management, engineering, landscape design, assessment, and planning will be considered as consultants for construction companies. There is also a special consultancy that provides scientific and technical analysis.  Construction Work Service This type of construction involves a combination of construction, maintenance, demolition, and reconstruction processes. Essentially, once the planning phase is completed, the construction phase begins. The contractor must align the construction with the consultants’ planned building.  Integrated Construction An integrated refers to a company that performs both building and civil construction tasks, including design, engineering, and procurement, all under one roof. Many foreign companies choose this classification when they are involved in government projects.  Becoming a successful contractor in Bali and Lombok requires not only expertise but also a clear understanding of the legal and cultural nuances of the local construction market. Whether you’re interested in private ventures or government collaborations, knowing the industry’s complexities is key to thriving in this competitive field. Also read: Guide to Check Company Profile Information in Indonesia Steps to Becoming a Contractor in Bali and Lombok Navigating Indonesia’s complex legal system is a key step for those looking to work as a contractor in Bali or Lombok. As a foreigner or foreign company, you cannot just simply become a contractor; you have to structure your business. Once you have understood the concept of type of construction, here are the steps you need to take. 1. Form a Foreign Construction Business Entity Construction services can be provided by an individual or a corporation. For foreign construction service providers, however, there are various restrictions on starting their firm. A foreign company offering building services that can only conduct business in Indonesia has options such as the following: BUJKA (Badan Usaha Jasa Kontruksi Asing) solely offers high-risk, high-tech, high-cost market segments, starting with consultations (engineering/design) and/or monitoring and supervision services and restricted construction services. An Indonesian national or foreigner with a proper work permit (KITAS) and the necessary certificates can lead BUJKA. BUJKA also has to coordinate a combined effort with accredited national business associations. The benefit of setting BUJKA is that you do not need to inject paid-up capital, and this can be a beneficial strategy for participating in government projects.  PT PMA: Foreign Investment Company. PT PMA is limited to classification B (BIG), either for planning, major corporations, or project implementers with project values greater than 100 billion. Forming the company as a Limited Liability Company (PT), it must have a maximum foreign share ownership of 67% for non-ASEAN nations and 70% from ASEAN countries. You have to find a local partner to hold the 30%, and the local partner must have a B classification as well.  2. Getting the Right Licenses The Regulation of the Minister of Public Works and Public Housing No. 8 of 2022 outlines the procedures for fulfilling standard certificates in the construction services sector, aiming to facilitate business licensing for construction service entrepreneurs. Below is a detailed breakdown of the licenses required for Badan Usaha Jasa Konstruksi Asing (BUJKA) and Perseroan Terbatas Penanaman Modal Asing (PT PMA) as stipulated in this regulation.  Badan Usaha Jasa Konstruksi Asing (BUJKA). To legally conduct business, BUJKA must establish a representative office known as Kantor Perwakilan Badan Usaha Jasa Konstruksi Asing (KP BUJKA). The licensing requirements include: Establishment of Kantor Perwakilan BUJKA: Foreign construction companies must set up a representative office in Indonesia to oversee their operations. Obtainment of Business Identification Number (NIB): Through the Online Single Submission (OSS) system, BUJKA must acquire an NIB, which serves as a unified business identity. Getting the Construction Service Business License (IUJK) wallow let BUto JKA provide Indonesian construction services. Possession of a Standard Certificate: BUJKA is obliged to have a Standard Certificate comprising: Sertifikat Badan Usaha (SBU) is a certificate attesting to the classification and qualification of the corporate body in building services. Please note that SBU will be a with the ed with the sub-classification that will be performed by the BUJKA. Sertifikat Kompetensi Kerja (SKK): Certificates for personnel, ensuring that key staff meet Indonesian competency standards. The certifneedse nebe signedo have by someone you will hire in the BUJKA. Membership in a Construction Association (KTA): BUJKA must register with a recognised construction association in Indonesia, such as the Gabungan Pelaksana Konstruksi Nasional Indonesia (GAPENSI) or other relevant associations. Membership ensures adherence to professional and ethical standards in the construction industry. PT PMA (Penanaman Modal Asing) For foreign investors aiming to establish a construction
- [Guidelines on how to work legally in Bali](https://ilaglobalconsulting.com/guidelines-on-how-to-work-legally-in-bali/): Foreigners can work in Bali or even in Indonesia with the proper visa and working permit. There are 3 types of visa companies, and individuals can use to work. General Rules Foreign nationals can work in Indonesia if they obtain a working permit (IMTA) from the Ministry of Manpower, and immigration grants the foreigner with a working visa. Expats working in Bali or Lombok can work exclusively for the sponsor company. Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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 A working visa allows foreigners to work in Bali for a specific position, exclusively within the role and for the company that sponsors them. Some positions and companies, however, are not open to foreign workers. For example, a foreigner cannot apply for a position as a boxing coach under a work permit in Bali if the company operates in the Food and Beverage sector. Indeed, some applications are rejected by the manpower due to the application for the wrong job position. Business owners with a PT PMA need to check their KBLI before applying to a job position for an employee to ensure they can be hired under this job title. The process to obtain a work permit takes 14 working days to 2 months. The sponsor company needs to apply for an RPTKA (work placement) and assistwitho an interview Apply and get the working permit (IMTA) Apply for a visa (working visa) Get the KITAS once the foreigner enters the country with a working visa Once the employee has their working permit and KITAS, then the foreigner can start to work. It is important for the company to contribute to BPJS each month to make sure they can renew their working permit every year. The validity of a working permit is a maximum of 1 year and must be renewed at least one month before the expiry date. Also read: Should You Use a Nominee For Your Company in Indonesia? Visa Trial Work in Bali Foreign workers can obtain only a fixed-term contract due to the limitation of the working permit to 1 year. In the event a company wishes to test a worker, the company can use a work trial visa, which may eventually lead to obtaining a work permit in Indonesia for eligible candidates.  This visa is valid for 60 days and can be extended 2 times. During this period, the company can apply for a working permit. Working as director in a PT PMA The director of a PT PMA needs to apply for a working permit to be able to direct the company. As a director,r the foreigner can only direct the company and the employees. The director cannot exercise work, for example, as marketing director or any other position in the company. For example, the director of a yoga company cannot, in any case, work as a yoga teacher. The investor KITAS allows the director to supervise its investment but not to direct the employees of the company in any form in Indonesian territory. Remote worker KITAS Bali is a place that welcomes thousands of digital nomads and even remote workers every year. Indonesia offers a remote worker visa, allowing foreign workers to work remotely from Indonesia exclusively for their employer located outside the country, including Bali. The remote worker KITAS doesn’t allow foreigners to work for another company located in Indonesia or perform activities that generate income inside Indonesian territory. Also read: Remote worker visa (Digital Nomad) for Bali Working as a freelance in Indonesia It is important to remember that there is no freelance visa in Bali. Foreigners can work exclusively for the company which sponsors the visa. A lot of expats think they can work as a freelancer as a DJ, a sports coach in several places or at a sports centre.  A person with a working KITAS is an employee of the company sponsoring the visa. The company has to pay the contribution with the salary, including income tax and social security BPJS. If the foreign worker wants to perform a service for another company, then the sponsor needs to invoice the company and pay the KITAS holder directly. Basically, the employee provides a service on behalf of the sponsor company. The client is not the client of the freelancer but of the sponsor company.
- [Moving to Bali For Expats Life? Here’s Some Guide](https://ilaglobalconsulting.com/moving-to-bali/): Taxation, political situation, and weather, Bali expats have their own reasons to move to Bali for a few months or long term. In the last few years, thousands of people have relocated to Bali to start a new journey, launch a new business or invest in properties. Moving to Bali requires preparing for travel. This guide goes through the steps to prepare for visas, tax residences, and different administrative tasks before and after moving to Bali. What to do before moving to Bali Preparing for the trip is crucial to not end in Bali with unfortunate circumstances and surprises. Bali is easy to travel as a tourist with a Visa on Arrival but can be difficult to understand when it comes to expatriation. Which visa to expatriate in Bali Indonesia has a wide range of visas when it comes to expatriation. Most expats initially apply for the C1 Visa (B211), but it is not cost-effective. Expats must extend it every 60 days and leave the country or use a bridging visa for extensions. Immigration requires a KITAS to grant residency status. You can obtain this stay permit after securing a visa from immigration, which authorizes stays longer than 180 days. Immigration in Bali grants this type of visa for different kinds of people: Investor in a company (Investor KITAS) Retirement KITAS for retired people Second home KITAS for people investing in a premium property or depositing 130 000 USD in an Indonesian bank account Remote worker KITAS (E33G) for the digital nomad or remote worker Dependent and family KITAS for the family member of a KITAS holder Working KITAS for workers sponsored by a company in Indonesia The visa can be applied for from the applicant’s country of origin. We recommend applying before coming to Indonesia to avoid flying out of the country or going through complicated procedures. The timeline to apply usually takes 5 working days. Also read: Obtaining Residence Permit In Bali (2024 Complete Guide) Where to live in Bali and how to find a property Bali has several expats with different lifestyle conditions. Everyone can find its perfect fit depending on the family situation and the budget. Areas like Umalas, Berawa, and Kerobokan are mostly appreciated by families with a budget allowing them to rent a property monthly or annually. The price per month usually starts around 2,000 USD to 3,000 USD per month. This area is close to the most reputable International school in Bali. Other areas after Canggu or Tombak Bayu are more appreciated by families with a lower budget but are still close to some of the best schools. Regardless of location, living in Bali allows expats to immerse themselves in Bali culture while enjoying a lifestyle tailored to their needs. Here are some of the areas and types of facilities expats can find: Areas Budget Facilities Umalas Kerobokan ++++ School Restaurant Nightlife Central and close to all areas Canggu Perereanan ++++ School Restaurant Nightlife Central and close to all areas Despite the comment, Canggu has no traffic. The traffic is to go there. Tombak Bayu +++ A bit further than the others, this area is close but involved to go through the traffic Uluwatu ++ This area is close to the best beaches. Unfortunately, there is no school yet for long for families. Nightlife is poor, and the facilities are limited. This area is booming and should change in the future Seseh, Cemagi ++ Surrounded by rice fields, this area is convenient to live in but is far from any facilities. It is a solution for the one looking for a lower budget. Kedungu ++ Some promoters are trying to attract people to this area due to cheap land acquisition. This area is far from everything and has no facilities. Families going there will need to move somewhere else after the kids grow. Ubud ++ Beautiful surrounding Restaurant Groceries Poor nightlife The centre of cultural Balinese life, Ubud is a beautiful place to live. Finding a property in Bali might be difficult in the long term since a lot of properties are oriented to the tourism market. However, it is possible to lease a long-term property or purchase land under a company (PT PMA) and build your own villa. Some websites or Facebook (marketplace) offer a range of villas in each area. We recommend contacting the person directly and opening a discussion. Other property agents offer some properties as well by taking a commission on it. Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. What to do After Moving to Bali Once you enter Bali with your visa, you get the KITAS (stay permit). After receiving the KITAS and moving to your house, some administrative actions are necessary to perform SKTT Register your SKTT through the Banjar after applying at the police station. Update your SKTT if you change your address in Bali and also update your KITAS. NPWP, EFIN and Personal Tax The personal tax has to be filed every year between January and March 31st following the civil year. In order to fill out the tax report, the KITAS holder needs to obtain an NPWP (tax number) and EFIN (Electronic Filing Identification Number) through the tax office. Bank account opening in Bali KITAS holders can open bank accounts in Indonesia. Some banks provide a multicurrency account
- [How To Start A Business In Bali - 7 Best Business Opportunities In Bali](https://ilaglobalconsulting.com/business-opportunities-in-bali/): Bali is on the top destinations for tourism and now appears to be on the top destination with a lot of business opportunities for those who want to become entrepreneurs. The new president, Prabowo, wishes to make Bali a destination similar to Hong Kong and Singapore regarding business development. Why Start a Business in Bali? Influence from all over the world Bali, famous for its surf spot, ricefield, rich culture, and vibrant nightlife, is attracting entrepreneurs and investors worldwide. After being a tourist place for decades, Bali now welcomes expats who want to relocate for the long term. Like Dubai, Bali has seen waves of foreigners running away from their country looking for new opportunities. With all nationalities represented in Bali, expats learn from each other, and find a place to develop and confront ideas. Bali expats and local entrepreneurs are germing business ideas. Low Taxation on companies Indonesia offers business opportunities in Bali with its low corporate tax rate. With only 0.5% income tax, new companies can grow without being pressured by high taxes, allowing entrepreneurs to focus on their business ideas. While not a fiscal paradise, Bali provides more tax advantages than even Dubai in some ways. Dividends in Indonesia are taxed at just 10% and can be exempt from tax if the profit is reinvested for 3 years. Strong local economy Being in Bali is being in Indonesia. This country of 280 million people is one the biggest economies in Southeast Asia and plans to be in the top 5 in the world in the next decades. By having a business in Indonesia, you can open a local market of 280 million people to test your business and open your gate to SEA. A lot of investors from property investment to marketing are realising that targeting locals can bring more return than targeting only expats. For example, having a property in Seminyak may have a higher occupancy rate if you also target people from Jakarta. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging, as there are so many documents, laws, and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Key Steps to Unlock Business Opportunities in Bali Legal Structure and Registration The first step to taking advantage of business opportunities in Bali is to register a company called PT PMA. This type of company can be open to 100% foreign investment depending on the business sector. Unfortunately, not all business activities are open at 100% despite most of them having been open in 2021. We recommend consulting in order to determine if the business sector is eligible for foreigners or if a local partner is necessary. For example, some businesses require 33% local participation or even 51% such as: Architect 33% (32% – if the other shareholders are from ASEAN) Construction 33% (32% – if the other shareholders are from ASEAN) Boat ownership 51% The process to register a PT PMA in Bali takes 5 business days. A company requires 2 shareholders minimum. There are several types of companies in Indonesia but those structures are not open to foreigners. Permits and Licensing Having a company open doesn’t necessarily mean you can operate straight away. Indeed, some activities require validation  in order to get a Sertifikat Standard. The activities below require validation from a specific ministry after the business has provided some additional information. Scuba diving Recruitment Real Estate as Broker Clinic Maritime affairs require a SUIPSUS or SIUPAL.  For property developers, additional licences such as UKL UPL or AMDAL can be required for PMA in order to build hotels or apartment hotels. Also read: PSE License in Indonesia: Essential Steps for Online Businesses Local Partnerships and Networking Having a local partner is crucial in some activities. For anyone starting a business in medical tourism, it is important to start by finding doctors in order to validate the licence and navigate through the medical industry in Indonesia. One of the keys to your success in Bali will also be to network with the right environment, depending on your business sector. For example, for somebody looking to develop a surf camp business, having some connections in Uluwatu might be a good place to start to understand the business sector and actors. Hiring Staff and Employment Regulations The success of a business is also the success of a team. For a newcomer to Bali, it might be difficult to understand the employment law in Indonesia, the possibility of hiring foreigners or locals. PT PMA are not restricted to hiring local people but there are some ratios and restrictions on hiring foreigners for some jobs. A ratio of 1 foreigner to 5 locals is required in order to be able to get an IMTA (working permit). A  foreigner who wishes to work in Indonesia can only work for the company sponsoring the foreigner. Indonesia gives 2 types of contract and companies can hire locals with a fixed term contract or offer a permanent contract (PKWT and PKWTT) while companies can hire foreigners only under a fixed term contract. Indonesian regulation is very protective for employees under contract, and it is difficult to fire employees who underperform. On the other hand the number of holidays for a worker in Indonesia is set at 12 days minimum (there are a large number of public holidays). Tax and compliance When you start a business in Indonesia, a company has a few obligations. Some are required monthly, quarterly and annually. Monthly obligations for a company include tax on salary, social security, local tax (restaurant, Airbnb), withholding tax and tax on income. Each quarter companies also need to report their investment in OSS to comply with the LKPM report. This report includes the number of employees and
- [Buying Property in Bali and Lombok? 7 Mistakes to Avoid](https://ilaglobalconsulting.com/real-estate-investment-mistakes-bali-lombok/):  For investors to Lombok and Bali, it is not easy to navigate through all the offers on the market and avoid mistakes during your first investment. From the illegal project to the overpriced property and misleading ROI, the investor coming to Bali or Lombok needs to step carefully with all the information provided. Project with lack of permit (PBG/ SLF) Unfortunately, Bali has some illegal projects on the market, and one of the first real estate investment mistakes is buying into a project without the necessary licenses or permits. As a reminder, each property in Indonesia requires a building permit (PBG) before the contractor can start the construction. Unfortunately, some agents believe or let clients think that the SLF application is sufficient. They sell on purpose to the developer and their client an SLF application that takes ages before seeing the approval. In some circumstances, certain constructions do not respect the norms or comply with regulations, and the PUPR might request amendments, creating issues for the client. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Unlicensed property Buying a property in Bali doesn’t mean the property can be rented out on Airbnb or Booking.com on a daily basis. The property must be located in an area allowing daily rental business. The areas are characterised by different zoning and colours. The zones allowing daily rentals are usually the Pink Zone (tourist zone) and Yellow Zone (under certain conditions). The Yellow Zone typically allows rentals only for local companies or individuals. The property owner must apply for a license (hotel, apartment hotel, Pondok Wisata, or Vila) to obtain a Business Identification Number (NIB). Once the property has got the NIB, the owner has to pay the tax every month under an NPWPD (local tax number). Wrong Location and Unexpected ROI One of the biggest real estate investment mistakes in Bali and Lombok is buying in the wrong location without understanding the potential return on investment (ROI). Before investing in Bali or Lombok, it is important to understand where the property is located. Unfortunately, too many properties on the market are offered by real estate agents in areas unsuitable for daily rentals. Bali’s infrastructure and traffic are so bad that a property seeming close on the map may be 20-30 minutes from the beach. This is due to the fact that a lot of developers could not invest closer to the beach but are not trying to offer those properties to their clients. Unfortunately, those properties will probably not have a high occupancy rate and will lack good comments. Those properties unfortunately cannot get the ROI promised by some agents. The average ROI will turn around 8%. Real Estate Agent and Developers in Bali and Lombok The previous point is, unfortunately, connected with the point here. Bali and Lombok have several actors who are unqualified, do not have real estate agent qualifications, or cannot act as developers or contractors in Indonesia. As a reminder, the property agent needs to be a member of the broker association. It is common to see on contracts “consultant commission” and not directly agent commission as the “real estate agent” are in reality not agents. It could not be an issue if it has no impact as well on clients. We face situations where real estate agents provide incorrect information to clients to push the sale. This impacts the return on investment for clients’ property investments in Bali and Lombok.. Some of the advice has a serious impact on their tax exposure. On the other hand, contractors are usually also unlicensed, and this has some serious consequences on the quality of the construction. A contractor or consultant in construction needs to have a certification in Indonesia and cannot operate without any qualifications. This is to protect clients of vice-cache. Unfortunately, some clients had to sue developers for construction delays, especially with properties showing serious issues after a few years. Also read: Why Now is the Perfect Time for Property Investment in Lombok Weak contract and extension To avoid costly real estate investment mistakes, it’s crucial to protect your investment, whether it’s under Freehold (HGB) or Leasehold (Hak Sewa). Indeed, both parties can notarize and legalize leaseholds as private contracts, defining their terms and conditions. In order to sell fast, some agents provide weak contracts so as not to offend the seller and to accommodate the transaction with the buyer quickly. This situation can have heavy consequences for the buyers, especially in the extension phase. Indeed, some landlords use weak parts of the contract to avoid signing or extending the leasehold. They may only agree if the lessee is willing to pay the construction price again. Other clauses, such as responsibility for taxes and the access road, must be well-covered and secured. Property management selection in Bali and Lombok Once the property has been bought, it now conveys the listing of the property on the platform for daily or monthly rental. “Having a great car is not essential if nobody is able to drive the car and win the race”. Property management companies such as Pulse Villa Management handle your villa from A to Z by focusing on the return of the investor. Looking at the price offered by the villa management company is crucial. A 20% marketing or management fee will significantly impact the return on investment (ROI) in Bali and Lombok. Investment under the personal name in property The seventh mistake to avoid before buying property in Bali is investing under your personal name. This is important if you plan to have a business with your property or generate income from the property management company. Indeed, most of the agents
- [Property Investment in Lombok: The momentum](https://ilaglobalconsulting.com/property-investment-lombok/): More investors are now looking to Lombok for real estate and property investments. With its white sand beach, South Lombok is attracting investors with the help of the Indonesian government. In the last few years, Bali has hidden other investment destinations in Indonesia. However, the game is now changing, and Lombok investment opportunities are growing rapidly. Lombok has started to attract investors from all over the world, especially in the property sector. With its strategic location, government support, and increasing tourism potential, Lombok is now ready to attract investors. This article reviews why you should consider Lombok investment as your next big opportunity. New infrastructure and pristine beach Lombok was known for several years for the Gilis and Senggigi and the Rinjani. Most of the tourists gathered in the north of Lombok, where the infrastructures, hotels and major places to visit were located. In the last few years, other spots have become more and more famous, especially in the South of Lombok. The Lombok invest and development initiatives in the South has been helped by the government to promote other destinations around the country.  Indeed the airport near Mataram is now able to accommodate large aeroplanes with flights directly from Singapore or Kuala Lumpur. This decision from the government has been accompanied by the development of the international Moto GP circuit in South Lombok. The place was for several years known only to surfers or backpackers looking for a place to escape from the crowd. For those who visited Kuta Lombok 10 years ago, they will not recognise the place anymore. The beaches are still pristine and natural. However, the infrastructure and development of restaurants or hotels have been booming over the last few years. While it could take hours to go from Selong Belanak to Kuta Lombok, it now takes only half an hour. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Improvement in hospitality While Bali has been famous for decades for its hospitality, Lombok and the Sasak were more known for being rougher and less welcoming. However, the community and younger generations now recognize that growth can come when everyone works together to create a welcoming atmosphere, positively impacting property investment in Lombok. In some ways, for visitors, Lombok is even now more welcoming than Bali itself. Lombok has worked a lot to change its image. Kuta Lombok now has a main street with bars and restaurants, which makes it pleasant to walk with families and friends at night. For fans of nightlife, Kuta Lombok also offers memorable events and parties. Affordable investments and Great ROI While Bali is now offering properties over a million dollars with no sea view, Lombok is offering a beautiful and natural landscape with a sea view or beachfront for thousands or hundreds of thousands of dollars. For investors looking to buy a property in Lombok, the price will be 80% more affordable than in Bali for a property with the same quality and sea view with a capital gain more interesting. The return on investment in Lombok is indeed, at the moment, more about capital gain and the expectation of seeing a price increase. Investors in Lombok can easily expect a capital gain of 200% in the next few years, with an ROI on Airbnb of around 20%. While Bali has thousands of villas in construction and strong competition between villa owners, Lombok is at the beginning of a new path. Bali is seeing a drop of 40% in daily rental income due to the new villas dropping in price and investors bringing new products onto the market (the number of villas increasing more than the number of tourists). Also read: How to Rent Out A Property in Bali and Lombok as Foreigner Regulation While Bali continues to rely on leasehold, property investment in Lombok offers a more secure approach. Despite what some vendors can promise, the leasehold starts to bring some difficulties. Indeed some investors have difficulties extending their lease in Bali even after 5 years. Balinese understands that the investors will be ready to pay a lot of money to extend the lease. Nobody can blame the Balinese, as every owner would do the same. Would you extend the lease of land if somebody has generously built a villa on your property? You would probably ask for a price of 30% over the market price. Unfortunately, do not expect the notary to help with the extension; the 1% fee is just to sign a document which was not require their signature. Lombok has taken a different approach, with owners selling their land on freehold (SHM) and allowing foreigners to purchase the land or the villa through a PT PMA to acquire an HGB. The legal framework is clear, and the procedure seems to follow the regulations. Developers are still new and some projects however need to be checked. At ILA Global Consulting, we have seen some projects without the application of a building permit (PBG) or with unclear definitions of the zoning and the land title. Moratorium in Bali Bali is facing a situation that could provide good momentum for Lombok. Indeed, Bali has faced an uncontrolled development with some real estate agents and some developers selling properties without building permits (PBG) and promoting the possibility of renting villas on Airbnb without any licence by leasing villas under their own name. This time seems over with locals calling now for a moratorium in Bali.  This moratorium has the objective to stop some development on beach clubs, restaurants, and new villa complexes in areas such as Badung (Canggu, Kuta, Uluwatu), Sanur and Ubud. Those regulations are more than welcomed by ILA if it
- [Guide To Renting Out Legally A Property In Bali And Lombok As Foreigner](https://ilaglobalconsulting.com/renting-out-property-bali-lombok/): In Bali and Lombok, foreigners invest in property in order to rent out a villa to tourists. The high return on investment promoted by developers is attracting several thousands of investors who want to find the dream villa for their investment in Bali or Lombok. Legalities to rent out a property on Airbnb in Lombok and Bali It is not possible to rent out a property on Airbnb in Indonesia as a foreign individual. The legislation authorises Indonesians to rent out a property after applying for a licence or foreign individuals under certain conditions if they set up a corporation (PT PMA). Indonesia authorises daily rental to tourists if the property respects certain conditions: Is located in a proper zoning such as Pink zone and certain yellow zone The property has a SLF (Sertifikat Laik Fungsi) which describes the function of the building and ensures the building meets the requirements for the business purpose or living. There are several types of SLF and the property needs to have a SLF in line with the purpose of the building (Villa, Hotel etc.) The property has been built legally, and the owner has applied for a PBG or IMB. Despite those conditions, many properties in Bali and Lombok do not meet the minimum requirements. Some properties are rented without complying with the legislation. Once the property meets those requirements, the owner or operator must apply for the business license. Business licence to operate daily rental in Bali and Lombok There are several types of business licences to operate a property on the daily rental market. The business licence to operate as an Indonesian or foreign company are: Hotel: The hotel licence is not available to a foreign company if the building is less than 4000 square meters Apartment hotel: Similar to a hotel, this licence cannot be applied if the building is less than 4000 square meters Pondok Wisata and Guest House: This business licence can be applied only by Indonesian individuals or Indonesian companies with 100% Indonesian ownership Vila: Since 2021, a PT PMA cannot apply for this licence Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Tax declaration on daily rental in Bali and Lombok As a hotel operator, a property management company, or a business operator, Indonesian law requires a tax of 10% on top of the price per night. This tax is collected by the taxpayer and is due by the operator or individual who applied for the licence described above. The taxpayer needs to apply for an NPWPD and pay the tax the month following the collection of the income. Also read: Land Ownership and Land Title Transfer in Bali and Lombok How to operate a daily rental business on Airbnb in Bali or Lombok As the licence above restricts the ability to rent out a villa legally, how do some investors rent out properties in Bali legally? Indeed, some use a nominee person or simply do not declare anything and do not apply for any licence. It is a high risk and more controls are done,  Airbnb is also collecting and requiring legal documentation nowadays. One way is to hire a property management company that applies for the license under a staff member or themselves if it’s a local management company. Some management companies also ask the landowner to apply for the license and pay the tax under the landowner’s name. After they receive the money, the property management company sends it to the investor. However, since the investor is not legally allowed to receive the money directly, the property management company or the license owner must send the profit to the investor. As an investor, setting up a PT PMA is the best way to avoid taxes. This PT PMA will make an agreement with the landowner and the management company, invoicing the company to receive legitimate income. The invoice can cover services like managing bookings and marketing. How to operate a monthly or long-term rental business on Airbnb in Bali or Lombok Indonesia authorises PT PMA to directly lease out or rent out a property on a long-term basis. The legislation accords the right to a foreigner under a PT PMA to rent out a per month or more a villa in Bali and pay the tax directly under the company tax number. Things to know before purchasing a villa in Bali and Lombok Check all the licence To ensure a smooth investment, it is recommended first to ensure the property has all the related documents or the developer has applied for a PBG. Despite the information some developers can communicate, it is illegal to start a construction without a building permit called PBG in Indonesia. Invest with the right structure To ensure a legal structure for your investment, the best way to rent out a property in Bali is to set up a PT PMA and focus on tax optimization. Investing in Bali under a personal name exposes the investor to high taxation in their country of residence. It is important to consult with ILA or a professional to understand how to optimize your taxes effectively. A lot of foreigners or developers will recommend under personal name, but: One, this is illegal Two, it exposes to high taxation. Furthermore, despite some recommendations to pay first and sign under a personal name. This action can lead to double payment and some difficulties to transfer the land or property under the company name. Also read: Get your license to run a hotel or villa in Bali
- [Tax on Real Estate in Indonesia: How to invest in Bali and Lombok](https://ilaglobalconsulting.com/real-estate-tax-indonesia/): Navigating the Tax on Real Estate in Indonesia can be difficult to understand, whether you invest under your personal name or under a PT PMA.  Investing in Bali or Lombok with developers or real estate agents seems fast and easy. Most real estate agents and developers will advise you to invest in real estate under a personal name. They suggest doing the transaction in a few days after a quick check on the seller’s rights. However, what are the real tax implications for foreigners investing in property in Bali? Additionally, what is the best setup for these transactions? Property tax in Bali and Lombok Understanding real estate tax in Indonesia is important for investors, especially when considering invest in property in Bali and Lombok. Taxes vary if the investor invests in a leasehold or freehold property and if the investor invests in a personal name or under a company (PT PMA). To be clear, a foreign individual is not allowed to rent out a property on Airbnb, Booking.com or any other platform.  Tax on property acquisitions in Bali and Lombok A foreigner investing in a leasehold property is not entitled to pay any tax. The lessor (seller) has to pay a flat tax (final tax) of 10% or 20% if the seller has no NPWP. In the event the lessee (buyer) is a PT PMA, the leasehold tax has to be withheld and paid by the lessee. The Leasehold tax is 10% for residents and 20% for non-resident In the event of an Akta Jual Beli (freehold purchase), the buyer must pay a tax of 5%, while the seller pays 2.5%. The seller’s income determines the tax base, while the Indonesian government defines the tax base for the buyer. Buyer tax 5% – Seller tax 2.5% Tax on daily rental The tax on daily rentals is set at 10% in Bali and Lombok. This tax is paid to the local government every month. The taxpayer needs to have an NPWPD. On the legal side, the license for daily rental cannot be obtained under a foreigner. It also cannot be paid by the foreigner. Despite reports of the tax office accepting this payment, it comes with complications. It means paying a tax on a business that is not operating with the right license. Land and Building tax The land and building tax is due by the owner of the property. As a reminder, a leasehold does not own a property, so legally, unless there is a different agreement, the taxpayer is the owner of the land and the building. The land building tax is based on the valuation of the building and land from the tax office. The rate is set by the region with a maximum national rate of 0.5%. Each region in Indonesia defines its own rate. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Tax for foreigners investing in properties in Bali Tax on income sent overseas After paying the local tax, money sent overseas for a non-resident is taxable at 20% or a lower rate, depending on the tax treaty with the taxpayer’s country. If the property management company sends money to the foreigner, it must withhold a 20% tax. For a foreigner investing in a leasehold as an individual, the income is a revenue from a rent. It is important to remember that selling a leasehold is not selling a property but selling a rental contract and getting rental income at one time. This income is usually taxable on the personal income tax in the country of residence. The taxable base is not the capital gain, as there is no capital gain on a leasehold contract. If a foreigner invests in a leasehold through a company, the real estate tax in Indonesia applies primarily at the company level. The foreign investor is taxed only on the profits distributed as dividends. Double tax treaty A double tax treaty (DTT) applies once Indonesia has signed an agreement with the country of the foreigner. This double tax treaty applies to a scope of income and not to all types of revenue. It is important to note that leasehold revenue is not part of most of the double tax treaty, and consulting a tax consultant in the taxpayer’s country is crucial. In some countries, the DTT limits provide credit but do not void the taxation in the country of the taxpayer. Also read: How to Invest in Property in Bali & Lombok
- [Employer Of Record: How To Hire Indonesian Remotely](https://ilaglobalconsulting.com/employer-of-record-indonesia/): An Employer of record is an easy way to hire Indonesians without setting up a company in Indonesia. Indonesia has a large educated workforce, which can be beneficial for overseas companies. EOR in Indonesia allows companies to have Indonesian employees working remotely while paying benefits to the employees. Why to use Employer of Record in Indonesia Benefit for the company A foreign company may decide to use EOR for several reasons. The first reason is to avoid having to set up an entity in Indonesia, especially if the clients are not in Indonesia and the company doesn’t need to have a physical office or presence. The second main reason is to prepare an establishment in Indonesia and test the market with some employees without the burden of having to close the company if the business doesn’t work. Benefit for the employee Since COVID-19, a large number of employees have preferred to work remotely but do not get any social benefits such as retirement pension contributions or social security contributions. With the employer of record (EOR), employees get the benefit for themselves and their families. Employers pay the employee’s contribution without having to set up an entity in Jakarta or the rest of Indonesia. Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service. How does EOR work? EOR is simple. The foreign company hires an Employer of Record (EOR) in Indonesia. This EOR company hires the employees on behalf of the employer (the foreign company). The EOR company in Indonesia pays the social security and pension contributions and handles the administrative work on behalf of the employer. The EOR has a working contract with the Indonesian employee while having a service-level agreement with the employer. The real employer is a foreign company, and the EOR does not handle any business relationship with the employee except the human resources and salary part. Cost of the EOR The EOR invoices the employer a percentage of the employee’s salary. There is usually a minimal amount. The employer transfers to the employer of record the following: Salary of the employee Pension contributions Social security contributions EOR company fee The EOR also invoices a deposit at the beginning of the contract in order to pay the employee in case the employer is not paying the employer of record and to have time to break the contract with the employee. In Indonesia, the cost of EOR ranges from 3% to 10% of the salary with a minimum invoice of around 50 USD (higher cost is probably not justified). ILA can assist you in deciding which solution is best for you, namely, establishing an entity and using an EOR. ILA can assist you either in the Philippines or Indonesia. Also read: All You Need to Know About Working Contract in Indonesia
- [How To Establish A PT PMA In Bali](https://ilaglobalconsulting.com/establish-pt-pma-bali/): PT PMA is a foreign investment company that can be established in Indonesia by foreigners in Indonesia. For foreigners coming to Bali, the PT PMA is the unique type of company to establish a business in Indonesia. PT PMA (foreign investment company) A PT PMA  (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company with a foreigner as a shareholder. It is the only way in Indonesia to conduct business activities and have commercial activities with properties. A foreigner who wishes to invest in Bali needs to set up a company in order to obtain a business licence and have a commercial income. The Investment Law Number 25 of 2007 recognises the right of foreignern investors to establish a corporation in Indonesia. Despite some wrong wording, a PT PMA is also a local PT as it is a legal Indonesian company. This PT has not to be confused with PT PMDN, which doesn’t authorise foreigners in the capital. While the PT PMA is a legal entity, the company has limited activity based on the business activity (NIB) registered with the Indonesian authorities. Who can establish a PT PMA? The company can be registered by a minimum of two shareholders. The shareholders can be both individuals and legal entities. Some activities are on a negative list, and only Indonesians are authorised to conduct these activities and or be directors of the company.  For some types of business, the PT PMA is required to have a local partner, such as in construction and architecture. The negative list was updated by Regulation of Indonesia Number 20 of 2018. The director of the company has to be an individual and is responsible for declaring the tax of the company. This director has to have a tax number called NPWP, which can be obtained as a director/ shareholder by applying for an investor KITAS or working ITAS. Capital requirements of a PT PMA The paid-up capital of a PT PMA is set at 10 000 000 000 IDR (10 billion). Despite the company law requiring the investor to deliver 25% of the capital, the BPKM require the investor to deliver at 100%. The authorised capital of a PT PMA is also set at 10 000 000 000 IDR (10 billion) but can be increased with a general meeting of shareholders. The capital of a PT PMA in Bali is also variable depending on the activity of the company. Some activities, such as logistics, mining or crypto companies, require a paid-up capital higher than 10 billion IDR. Also read: How to Open a Representative Office in Bali Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging, as there are so many documents, laws, and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. How to set up a PT PMA The process of setting up a foreign-owned company in Bali takes a few days. However, the verification of the business licence to operate the company varies from a few days to a few weeks or even months, depending on the activity. Requirements to set up a PT PMA 2 shareholders minimum: it is not mandatory to have a local person if the activity doesn’t require it Commercial address: the company needs to be registered with an address having an SLF in line with the business activity. Some businesses cannot be registered with a virtual office and need an office location Director and commissioner: the director of the company has to obtain an NPWP which can be obtained by applying for KITAS Accounting and Local Bank account: the company needs to register in its book its transactions Steps to register a PT PMA in Bali The process to register a PT PMA in Bali is easy and takes only a few days. Here are the steps to register a company in Bali. Provide the documents of the shareholders (passport and company document if the shareholder is another legal entity) Define a name for the company. The name should be at least 3 words. Some words are not accepted, such as company, limited liability, etc. Provide the address of the company Define the business activities (KBLI) Drafting the articles of association (Akta) The director and shareholders need to sign the articles of incorporation Registration of the company with AHU and the ministry Obtain the ministry approval Registration of the tax number (NPWP) Apply for the business licence and obtain the business registration number in OSS. Legal documents of the PT PMA The list of documents to obtain after the registration process varies on the activity of the company. However, some documents are at least similar to all types of business: Article of Association (AktA) Ministry Approval – SK Menkumkam / AHU NPWP Company (tax number) OSS Username and Password NIB and other licenses from OSS Once the NIB is obtained, some activities need to verify their business activity in order to legally operate. If the status of the NIB is belum terverifikasi, other actions are necessary towards some ministry locally or nationally. Common mistakes by opening a PT PMA Setting up a PT PMA company in Bali is easy, but structuring the company can have some legal and tax implications. Unfortunately, some businesses are operating illegally without even knowing their situation, while other businesses could operate with more tax efficiency. It is important to think about the structure prior to the establishment and discuss it with a legal and tax consultant. Not optimising the shareholder structure Operating with the wrong business code (KBLI) Do not verify the NIB Do not report tax even if there is no income Also read: How to Start a Company for Property Investment in Lombok Obligations of the PT PMA Opening a bank account A
- [What's Going On With The Development In Bali](https://ilaglobalconsulting.com/development-in-bali/): For those who have been in Bali since the Covid era, it has been impossible not to see property development happening there. The news and media around the world have been showing the beauty of Bali and the downsides of this development. Politics are now working on a moratorium to stop or control the development of Bali. But how have we arrived at this situation? What are the real problems behind Bali’s development, and how can we fix them? As a legal advisor, ILA Global Consulting has worked with developers, real estate agents and investors. We have seen things changing in the last decade. Regulation in Bali on property investment Some politics and tourism unions are calling for a moratorium on property development to stop developments in some areas. The regulation for property development in Bali is clear. Indonesia has some zoning with a clear spatial regulation where hotels can be built, villas, residential houses etc. Zoning in Bali It has been decades since developers and buyers have been building in unauthorised zones. Bali is famous for its strong community called Banjar. It is unfortunate Banjar did not see the development in Bali and suddenly woke up with a lot of properties developed in a green zone. Banjar is patrolling areas and anything has to pass by them, even local financial contributions. How did it happen? The issue is clearly not a lack of regulation, and another regulation will not change anything as long as the authorities do not apply the regulation to the whole community. Foreigners are not the only ones responsible for this development. The ones selling their land are Balinese themself. Some locals have reported being pressured to sell their land. This situation is clearly unacceptable on an island we all love for its culture and beauty. The government established zoning with a clear purpose and plan. Yet, some foreigners, who are often the first to complain about the lack of infrastructure, collaborate with notaries to change a land’s zoning so they can build there. How can anyone manage the roads and infrastructure when new villas appear daily in areas that weren’t intended for development? Building permit Buildings in Bali require a building permit, and the regulations are clear. Every development has to be approved by the PUPR. Construction cannot start without a PBG. In this building permit story, politics and administration have to take a look. We are facing deals where parties do not have the right building permit. Foreigners are buying consciously without a PBG, and for some reasons that would be complex to describe, some developers succeed in getting an SLF despite having started the construction illegally. How can it happen?  Authorities know this practice, and another moratorium will not change anything if the practice continues. Approving building permits typically requires reviewing architectural plans. Bali enforces regulations for design and construction, but many constructions proceed without following these requirements. Bali is seeing mediterranean houses, what happened to Bali?.. Who approved the design of the houses? Start your investment journey in Indonesia the right way With so many diverse investment opportunities in Indonesia, you need to make sure you’ve got the right setup to do business here.  Get help from our team of experts to register your company, navigate the real estate market and secure your visa and stay permit. Schedule a free call with us today to plan your next steps with ILA. Consequences of property development in Bali Bali is facing several risks that could be dramatically important to the future of Bali: Cultural issue Ecological issue Social issue Financial issue The first risk is obviously the cultural issue. Due to this development, Bali has lost its essence and culture. The pressure of development has seen some sacred trees being cut. Temples have become more of a Disney Land area than a cultural and holistic place. This pressure also has consequences on the ecological side. The south of Bali is in a hydraulic deficit. Pecatu and Uluwatu see hundreds of trucks delivering water every day. Properties in development at the moment are facing a surge of water demand and none know how to face the situation in the next few years. This pressure has some social issues with an emergence of social bashing on foreigners on social media with a hate on some developments. Indeed a few foreigners had bad behaviour but the behaviour has been a mimic of what was happening here. As we used to say, if all locals were having a helmet none foreigners would probably drive with no helmet. All those issues above can lead to some financial issues and tourists suddenly changing their mind coming to Bali. Who would come to Bali if the culture disappeared, you can’t have a proper shower and you feel locals not welcoming you?  We are all responsible for what is happening As foreigners, we also need to say stop. If a villa has no building permit, this villa should not be listed with real estate agents, and this villa should not be accepted by a notary. SLF should not be delivered after the construction, and legal agents should advise their clients. The administration and Banjar should report it, and developers will start tomorrow to apply the regulation.  Only outsiders probably are not supposed to know what is going on. All insiders are suddenly surprised that there is suddenly a moratorium while everybody knows what’s going on. We see developers having media exposure, but everybody knows they do not have the right permit to build and authorise. Rich local investors and foreigners are pushing to change some zoning and get authorisation while other local people or poor families are under pressure to sell. The future of Bali depends on us, especially the Balinese. It is their land, and it is time to reinforce the regulation and kick-off. The regulation doesn’t have to be changed. It is time to apply the regulation and provide the right administration. The Indonesian government and Balinese have
- [Bali Scams on Property: How to avoid it](https://ilaglobalconsulting.com/property-construction-scams-bali/): The main concern of investors is to avoid scams in Bali when buying a property. The last few months have seen uncontrollable developments in Bali properties, leading some local governments and some locals to request a ban on construction. Indeed, this development has been uncontrollable, and everybody knows what has been happening. How to advise foreigners to follow the regulation when, in more than half of the transactions, the local seller requests the foreigner not to declare the tax? How to advise foreigners to follow the building regulations in Bali when the local community advises foreigners to not apply for the building permit before construction? Bali is navigating these issues on two fronts, making it difficult for foreigners to understand what to do and how Bali scams might affect their property or business. Leasehold under personal name The pressure of the third parties When it comes to purchasing a villa, real estate agents, sellers or some contractors always advise their clients to go through a leasehold under their personal name. This solution has the following objective: Fasten the transaction as they do not have to wait for the creation of a structure Avoid paying VAT  Reduce or avoid the leasehold tax This mechanism is offered to foreigners who arrive in Bali and have the impression of buying a villa while, in reality, the leasehold is a Hak Sewa, meaning the contract is a long-term rent.  This distinction is important between owning a property and owning a leasehold. This difference directly impacts how the tax office classifies the overseas investment and how the money is returned and taxed in the investor’s country of residence. Implications of reducing the leasehold tax Indeed, Indonesia has a tax facility with only 10% on leaseholds based on the seller’s charge. However, it is common practice to have notaries sign an agreement with a value lower than the real price. The local person does this to pay less tax. The consequences for the foreigner can be dramatically important with the tax office in its country of residence. Indeed, if the foreigner is not able to justify the amount that has been transferred with a supporting document with a correct value. In fact, some foreigners have had to pay fines due to their inability to show a contract with the proper value because the real contract had disappeared. These scenarios are often a part of real estate scams that target unsuspecting buyers. Implication when it comes to selling the leasehold Again, to be clear, purchasing a leasehold is not purchasing a property. A leasehold itself is not a lease to build, and the foreigner has not its name on the land title. This is important when it comes to selling the leasehold. Indeed, some foreigners on some advice think that selling the property will subject them to only 10% leasehold tax. However, when it comes to bringing the money back, the tax office in the home country can requalify the amount as an income taxable on the personal income tax as this amount is not related to a property purchase or a lease to build as it is simply an income from a contract. Implication when it comes to renting out the property To be clear, a foreigner cannot rent out a property in Indonesia under their personal name. Having a leasehold under a personal name does not allow the foreigner to rent their property on Airbnb in Bali or Lombok. It is possible to have some investment mechanism, but the personal name is not part of the legality. Understanding these implications can help avoid falling victim to real estate scams in bali and ensure a smoother investment experience. Also read: Can Foreigners Rent Out Property in Bali? Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. The scams on construction in Bali Leasehold and Right to Build For people looking to build a villa or apartment, the leasehold does not allow foreigners to build a villa or any apartment. For foreigners, the only possibility of building is to have a right to build on top of the leasehold or to purchase a freehold property and convert it into an HGB. Building permit PBG and SLF Most of the current in Bali are illegal and do not have a right to build. By law, the regulation requires the developer to apply for a building permit before the construction. The applicant must hold the building permit, but foreigners are not allowed to do so under their personal name. However, foreigners can obtain this right to build by establishing a company called PT PMA. As an individual, if the foreigner has no company, he will not be able to apply under its name for the building permit and will always be dependent on the local person. The building permit is required to apply for licenses like hotels or villas to rent out property. Always check the building permit before any transactions, especially for off-plan projects, to ensure they have building authorization. The consequences can be important, such as: An important fine Destruction of the property Impossibility to have the proper licence to rent out the property or run the business Common mistake Deposit payment We have seen a lot of foreigners losing their deposit due to a lack of an unsecured contract or for payment paid to a notary without having made a proper contract before paying a deposit. You pay a deposit under certain conditions, but a strong contract ensures you can get it refunded. Local Nominee in Bali Clients often explain that they deposited money into the bank account of a local friend they met during their vacation, who promised to
- [How To Open A Representative Office In Bali](https://ilaglobalconsulting.com/representative-office-bali-indonesia/): Entering the Bali market might be challenging, considering the complexity of the regulations and culture. However, the government has offered business actors the opportunity to get into the market as easily as possible to establish their presence in the market. One of the most popular entry strategies is establishing a representative office. What is the Representative Office? A representative office (RO)  is an office incorporated by an overseas company to represent themselves in Indonesia. The representative office is not required to have capital injection; this type of office is the best option if you want to do market research, look for a tender, or maintain a relationship with your agent. A representative office is led by the Chief of Representative Office (CRO), who must reside in Indonesia. The CRO cannot hold a concurrent position as head of a company and/or for another representative office. Additionally, if the CRO is a foreigner, it is compulsory to obtain a working permit as well. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging, as there are so many documents, laws, and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Type of Representative Office in Indonesia Representative offices regulated under Government Regulation No. 5 the Year 2021 and BKPM Regulation No. 4 in the Year 2021 are as follow: Foreign Representative Office (Kantor Perwakilan Perusahaan Asing/KPPA); Foreign Trading Representative Office (Kantor Perwakilan Perusahaan Perdagangan Asing/KP3A); Representative Office of Foreign Construction Services Business Entity (Kantor Perwakilan Badan Usaha Jasa Konstruksi Asing /BUJKA); Representative Office of Foreign Electricity Supporting Services (Kantor Perwakilan Jasa Penunjang Tenaga Listrik Asing /JPTLA). Foreign Representative Office (KPPA) Opening a representative office in Bali, specifically a KPPA, is a suitable option for companies wishing to conduct market research or feasibility studies in Indonesia. The limitation of the Representative Office is as follows: Acting as a supervisor, liaison, and coordinator to take care of the interests of the company.  Preparing for the establishment of PT PMA  Not generating revenue, including prohibition from engaging in selling and purchasing transactions for commercial goods and services with local companies or individuals. It needs to be located in the building of the capital city of the province. Foreign Trading Representatives Office (KP3A) If your parent company is a trading company, such as a distributor or an e-commerce business, setting up a representative office in Bali under KP3A is a good option. KP3A is mandatory to obtain a business registry number (NIB) and a business license (SIUP3A). The KP3A can be located in the capital city of a province and any district or regency within Indonesia. KP3A is not allowed to participate in selling transactions from the beginning, such as signing a contract, sending invoices, and settling claims. Obligations that KP3A must follow: KP3A business activities must be carried out by a national trading company or foreign-owned company that has an Import License (API-U). KP3A must appoint a national company as an agent for the promoted goods; KP3A and its branch offices must have a SIUP3A; Foreign Construction Representative Office (BUJKA) Government Regulation No. 5 Year 2021 allows the Representative Office of a Foreign Construction Service Business Entity (BUJKA), a legal entity from abroad, to establish an office in Indonesia for construction business. BUJKA may provide construction consultancy services, construction works, and integrated construction projects, but requires extensive qualifications.  Furthermore, consultation services and construction works are divided into 2 classifications, as follows: Classification Construction Consultancy Service  Construction Works Integrated Construction Works General Architecture  Engineering Integrated Engineering  Landscape architecture and regional planning Buildings Civil Buildings  Buildings; Civil Buildings  Specialized A scientific and technical consultancy Technical testing and analysis Preparation Special Construction Prefabricated  Construction Rental of Equipment Installation  Building completion Similar to a construction company, BUJKA must obtain a business registry (NIB) and its own business license. Additionally, BUJKA must secure a certification in the form of a Business Entity Certificate (SBU) to serve as its commercial license. Once the BUJKA is completed and is going to perform a project, it needs to form a Joint Operation with a local construction company. Representative Office of Foreign Electricity Support Service Companies (JPTLA) According to Government Regulation No. 25 Year 2021 (GR 25/2021), JPTLA operates as a private business entity engaged in electricity supporting services. To conduct its electric power support services business, JPTLA must obtain a business license and a Business Entity Certificate (SBU JPTLA). The business licensing for JPTLA will be issued to the following categories of businesses:  Consultation services related to electricity installation;  Construction and establishment of electricity installations; and  Maintenance services for electricity installations. JPTLA may only be permitted to carry out high-cost electricity supporting services works with the following threshold: Construction and electricity installation setting, at least IDR 100 billion; Consultation in the field of electricity installation or maintenance of electricity installation, at least IDR 10 billion. Also read: Should You Use a Nominee for Your Company in Indonesia? Pros and Cons of a Representative Office Pros  100% foreign owned  No capital investment Can sponsoring visa  Cons Not allowed to generate revenue  Limit to only hiring a maximum of 2 foreigners.  How to apply for a Representative Office in Bali In general, to get a business license for a representative office in Indonesia, including Bali, you must apply through the Online Single Submission (OSS) system. What you have to prepare before the application is the following: Letter of intent legalized by a notary and the Indonesian Embassy located in the parent company’s country of origin; Letter of Appointment by the Indonesian Embassy located in the parent company’s country of origin; Letter or Statement of the CRO that will not engage in any commercial activity Reference letter from the Indonesia Investment Board in the country of origin  Article of Association
- [How To Invest In A Property In Bali and Lombok](https://ilaglobalconsulting.com/invest-property-bali-lombok/): One of the recurring questions of people buying a property in Bali or Lombok is whether they should invest under their personal name or under a company. The article has the objective to reply to this question and give some clues on how to invest in a property in Bali and Lombok and if it is better to invest under a PT PMA or under a personal name. Legal considerations One of the most important points when it comes to investing in a property in Lombok or Bali is the legal considerations. First of all, an individual cannot own a land under its own name or a villa. Building permit (PBG) For anyone considering Bali and Lombok property investment, it’s important to note that it is impossible to build a villa under a foreigner’s name. The ability to build a villa and get the building permit PBG and SLF is only the name of a company if this company has obtained an HGB (Right to Build). Bali has a lot of illegal construction due to the lack of rights for developers on the land. Having a lease without an HGB on the top doesn’t allow the developer to build under its name, and they often use a local person or local company (PT PMDN) to get a building permit if they have one. Licence to Rent out a property in Bali and Lombok The licence to rent out a property in Bali and in Lombok is only available to a foreigner under a company (PT PMA) despite it being available under local Indonesian under their own name. However, renting out a property can be under certain conditions and circumstances depending on the following licence: Villa Apartment hotel Hotel Pondok Wisata (guest house) Some of those short-term rental licences are not open to foreigners, and some mechanisms might be necessary to make it legal. Again, a foreigner cannot legally rent out a property under its own name. For long-term rental, PT PMA can lease out on a monthly basis or more a property. It is important to note that a building permit is necessary to obtain the appropriate licence. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Tax considerations The second aspect to consider is the tax exposure of the foreigner by having a property under their own name or under a company. The section considers the scenario of an investment done properly with all the legal aspects fulfilled. Withholding tax on revenue sent aboard on daily rental income As mentioned earlier, a foreigner cannot rent out a property under its own name. However, some property management offers to use the name of a local person to pay the tax under the local person and send the money overseas to the foreigner. The withholding tax on this transfer should be 20% for non-residents, with an additional VAT. In this scenario, the person will pay 10% local tax with an additional 20% and 11% tax. By investing under their own name, foreigners are exposed to a personal tax heavier than under a company. Indeed, the revenue sent cannot be entered under the double tax treaty as this income cannot be classified. Reselling the property When it comes to reselling, how the investor initially chose to invest property in Bali and Lombok can significantly influence taxation. The country of residence of the foreigner can impose heavy tax, especially on a leasehold. Indeed a lease is not considered as an investment in property as a lease is a long term rent. Reselling or subleasing is similar to receiving a long-term income from rental and not reselling a property. Some countries tax heavier revenue issued from short and long-term rentals than dividends. In the case the foreigner resells the property and takes a dividend, the tax office will apply the double tax treaty on dividends between Indonesia and the country of residence. Another way to optimise is also to resell the shares of the company instead of paying a lease tax and a dividend. To summarise, buying a leasehold under the personal name: Do not fasten the process, as 5 days are usually necessary to open a company.  Expose the foreigner to heavy taxation in their home country after reselling the lease Expose the foreigner to heavy taxation on daily rental by sending the money outside the country By handling a company, the foreigner can: Get tax benefit with the double tax treaty with Indonesia Protect its assets under a company Get a residence permit to live in Bali and in Lombok Get options on the way to resell the property Get all documents under the company name Make the process legal with optimal taxation Also read: How to Start a Company for Property Investment in Lombok
- [Guide To Setting Up A Company To Invest In A Property In Lombok](https://ilaglobalconsulting.com/setting-up-company-for-lombok-property-investment/): Investing in a property in Lombok can be the right thing to do, while Bali is starting to have overpriced property and uncontrolled developments. Lombok offers affordable lands with a sea view. Despite the precautions to take with the project offered, here is a step-by-step guide on how to set up a company in Lombok. Why invest in a company One of the most common questions investors have is whether we should invest under our name or under a company name. Legal reason The only possibility for a foreigner to own a property is to acquire one of the different types of land certificates eligible in Indonesia. A foreigner can use a company PT PMA to purchase a freehold property and apply for the HGB (right to build and own a building). By purchasing the land with the company, the foreigner can apply for all necessary licenses and building permits under the company’s name, making Lombok property investment smoother and more secure. Tax Reason Despite some common misunderstandings, the company in Indonesia aligned with a stay permit (KITAS), which gives some tax benefits. As a reminder, DTT (double tax treaty) are applicable only to a certain type of financial movement. Income generated in Indonesia has to be paid on an Indonesian company account. If this amount is sent overseas, it is subject to a withholding tax of 20% and VAT. A company can help to reduce the amount of tax in Indonesia and in the country of residence of the investor. Start your investment journey in Indonesia the right way With so many diverse investment opportunities in Indonesia, you need to make sure you’ve got the right setup to do business here.  Get help from our team of experts to register your company, navigate the real estate market and secure your visa and stay permit. Schedule a free call with us today to plan your next steps with ILA. Company structure The only form of company allowing foreign investors is a PT PMA. This type of company is a Limited Liability Company. The company is open to 100% foreign investment for most of its activities. To establish a company in Indonesia, a minimum of one director and one commissioner is required. The director is responsible for implementing policies and overseeing the company’s management. Shareholders must reappoint the director every five years. Shareholders The shareholders of a PT PMA can be individuals, foreign entities or other PMA. The individual foreigner must be over 18 years old to be a shareholder. A shareholder is not necessarily a member of the board of directors. Shareholders have to be present at the general shareholders meeting. Commissioner The company has one commissioner. The commissioner of a company is responsible for overseeing the director’s activities and reporting to the shareholders. The commissioner has the authority to suspend the director if their actions are not aligned with the company’s interests. The key responsibilities of the commissioner include: Ensuring compliance with Indonesian law Providing advisory support to the board of directors Approving the annual report Director The director of a company is written in the status of the company in the deed of establishment. The role of the director is important as the director of the company takes responsibility for the orientation of the company. A PT PMA can have several types of directors: President director Director Operational director The director assumes the main responsibility and has the authority over the bank account of the company for the opening. In case of bankruptcy, the director cannot assure this role in another company for a period of 5 years. Capital Requirement of the PT PMA The capital requirements for a PT PMA (Foreign Investment Limited Liability Company) vary based on the company’s business activity and classification. Certain sectors, such as cryptocurrency or construction, may have higher capital requirements. However, the minimum declared capital for a PT PMA is 10 billion IDR. Registration process The registration process to start a company for Lombok property investment takes around 5 days. For other types of activities, it is important to check the required licenses. When choosing the company name, it is important to understand the difference between a legal name and a trademark. The legal name of the company is not a logo and it is a combination of words. Certain words, like “OF,” are not eligible for registration.  Combinations of symbols, letters, and numbers are also ineligible.  Terms that oppose the Indonesian government, religion, or morality are prohibited.  The name must align with the business activity and not be misleading, and it cannot resemble or represent a government institution. The registration process can be done remotely as long as the shareholders are in measure to provide a power of attorney to the signing person. AKTA or Deed of Establishment The articles of association are governed by corporate law, with standardised terms. The AKTA cannot revoke shareholders’ rights to receive financial dividends. However, it may establish different classes of shares to limit certain voting rights or influence within the company. Key elements included in the AKTA are: Names of shareholders and their respective share classes Rights attached to each share and the nominal value Authorised, issued, and paid-up capital Company name and location Description of business activity Board of Directors and commissioners Methods and locations for holding shareholder meetings Procedures for profit distribution and dividend payments Duration of the company’s incorporation (typically 5 years) After the registration of the deed of establishment, the Ministry of Law and Human Rights issues the approval (SK), and the company is officially registered with an address in Lombok. Domiciliation When it comes to a first investment, the company usually has no commercial address with a building permit (SLF) classifying the address as a commercial address. For investors buying a land or pre-establishing a company the address needs to rent a commercial address such as a service provider such as ILA Global Consulting. Tax card – NPWP The company has to get a tax number to
- [Land Ownership And Land Title Transfer In Bali And Lombok](https://ilaglobalconsulting.com/land-ownership-land-title-transfer-bali-lombok/): When it comes to acquiring rights on land in Bali and Lombok, it can be confusing to define which rights and obligations a foreigner gets. While in Bali, most of the transactions are on a lease (Hak Sewa), Lombok’s transactions are on a freehold property (HGB). The article below describes the different types of land ownership in Bali and Lombok. Land Titles in Bali and Lombok Bali and Lombok are part of Indonesia and follow the rules of Indonesia regarding the transfer of ownership. It is important to remember that having a lease doesn’t allow the foreigner to own a house, and taxation in their country of residence might be highly impacted. HGU HGU (Hak Guna Usaha) is a right granted to individuals or legal entities. The title can be translated as Business Use Rights for agriculture, plantations, livestock, fisheries, forestry, etc. It gives the right to have a business on the land. This right is typically granted for a set period of up to 35 years and renewed for another 20 years. There are specific conditions that ensure that the land is used productively and in line with the designated purpose. Local entities such as PMA and Indonesian individuals have the right to use the land, but full land ownership in Bali stays with the state. The owner of the HGU (Hak Guna Usaha) has obligations to meet certain requirements and respect the environment. The duration is stipulated in the contract, and the extension can be done at least 2 years before the expiration. The entity can request to transform the HGBU into an HGB under certain conditions. All the terms are regulated in the Basic Agrarian Law Number 5 of 1960 and Government Regulation Number 18 of 2021. HGB The HGB is a right to build on a land under the name of the entity owning the HGB. The Undang Undang gives rights to build and own buildings on land that initially doesn’t belong to the entity having the HGB. The terms of the HGB are initially for 30 years and are extendable for 20 years with a renewable option of 30 years. The total rights are for a period of 80 years. At the end of the period, the land goes back to the Indonesian state. The owner of the land is no longer the original owner but the government. The HGB is a right provided by the Indonesian government to build and manage the land. One of the advantages of the entity owning a HGB is the ability to use the land as collateral. According to Article 44 in the law 18/2021, holders of HGB (Hak Guna Bangunan) have the following rights: Use and utilise the land as specified in the granting decision and agreement. Build and own structures on the land for personal or business purposes, following legal provisions. Conduct legal actions such as transferring ownership, changing land use, or imposing dependent rights on the property. Hak Pakai The right of use (SHP) grants individuals or entities the ability to use and benefit from land controlled by the state or owned by an individual landlord through an agreement with the landowner. In terms of land ownership in Bali, the Hak Pakai can be obtained by: An Indonesian A legal entity in Indonesia A representative office A foreigner Each area and sometimes Kapubaten in Bali and Lombok define the minimal conditions to obtain a Hak Pakai. For example, the minimum requirement is a 5 billion investment with a building already built on a land with a maximum size of 20 ara in Badung. The Hak Pakai is providing the following rights: using and utilising the land utilising natural resources and water resources on the land  ability to transfer the rights. Similar to the HGB the Hak Pakai can be collateralised with another party. The Hak Pakai has a validity of 30 years with an extension of 20 years and can be renewed for another 30 years. Also read: Complete Guide To Buying Property in Bali as a Foreigner [2024] Right of Freehold (SHM) Sertifikat Hak Milik known as SHM is granted to Indonesian individuals. It is the highest form of land or property ownership in Indonesia. It grants full and indefinite rights to the owner. Unlike the HGB or HGU, which have time limits, SHM is permanent and can be passed down through generations. Despite the certificate having no time limitation, it is important to note that the government and court can revoke the rights in certain circumstances or expropriate the landlord, as has happened in some areas in Bali. Foreigners and Legal entities are not eligible for this type of certificate and land ownership. HPL or Right to Manage The HPL is a certificate granting rights to entities to manage land for a certain period of time. This certificate is provided by the government to manage land owned by the government. Unlike other certificates, it is not possible to collateralise the certificate or transfer the rights to another entity. Make Navigating Real Estate in Indonesia Easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Regulations for Foreigners Transferring Land Titles in Indonesia As described above, only a few types of land titles can be acquired and transferred by foreign entities: HGU or Business Rights HGB or Rights to build and own buildings Hak Pakai or Rights to use It’s important to note that Hak Sewa or Lease, which many foreigners commonly use in Bali, doesn’t grant legal land ownership in Bali or rights over buildings, and it cannot be transferred. The lease itself can be based on the contract but not legal ownership. The titles above are recognised by the Indonesian government in Bali and
- [Should You Use a Nominee for Your Company in Indonesia?](https://ilaglobalconsulting.com/nominee-for-your-company-in-indonesia/): The nominee structure in Indonesia has been used and offered by some lawyers and agents for a while in Indonesia. A recent comment from the Indonesian government was calling for Indonesians not to lose their rights by providing a nominee in Bali. To be clear, a nominee agreement is illegal and is a crime. Here are the things before considering a nominee agreement in Bali, Indonesia. What is a Nominee in Indonesia? Nominee company A company with a nominee in Indonesia is a company using Indonesians as shareholders in a company in order to conduct an activity not allowed by foreigners. Lawyers and agents offer some agreement between the Indonesians and the foreigners to protect the foreigners and compensate the Indonesian nationals. The common practice is to offer: Loan agreement Pledge of shares as collateral Compensation agreement Nominee licence holder The notion of nominee also applies when a foreigner uses the name of an Indonesian in order to get licences that the person could not use if the foreigner was using their own name. This practice is used by some real estate companies and property management companies in order to get licences. Start your investment journey in Indonesia the right way With so many diverse investment opportunities in Indonesia, you need to make sure you’ve got the right setup to do business here.  Get help from our team of experts to register your company, navigate the real estate market and secure your visa and stay permit. Schedule a free call with us today to plan your next steps with ILA. Why Do Companies Use Nominees in Indonesia? Foreign Ownership Restrictions Indonesia imposes restrictions on foreigners in several aspects, which can make it difficult to conduct business activities in certain domains: Real estate Marketplace Laundry Architecture Construction Mining etc The most common case is the one on the land. Indonesia has several types of land ownership, Hak Atas Tanah (HAT), and the most common right is the SHM (Hak Milik). This full right on land has no limitation in time, and some foreigners might be tempted to use their local partner or spouse to buy the land under the name of the Indonesian.  On the other hand, some activities are not open to foreigners under a foreign investment company (PT PMA), and some lawyers or agents suggest opening a company PT PMDN with Indonesian shareholders (sometimes selling their own name) to go around the law to conduct the business. Minimum Capital Requirement in Indonesia Despite the law being sometimes confusing, corporate law is clear for companies. The capital of a company for foreign investment starts at 10 billion IDR (ten billion Indonesian rupiah). The amount of capital to deliver is 25% of this amount. Some investors might be sceptical about delivering this amount or investing it in a small business. At the opposite of a PT PMA, the PT PMDN (local company) requires only 51 million IDR (1 billion if the company hires a foreigner). Nominee Agreements Used in Real Estate The real estate sector is using nominees in several aspects. The most common practice in the last decades has been to purchase land by using the name of an Indonesian. This practice tends to disappear since PT PMAs are allowed to get some rights on Freehold property. Despite the acquisition, the real estate sector has used some stratagem to legitimise property rental in Indonesia on a daily basis by offering Indonesian names to be able to rent out a property on a daily basis or the landlord to apply for the licence. This practice is not secure and legitimate for the foreigner and the Indonesian itself as the tax should be paid under the licence holder, which is the Indonesian person. Having a Pondok Wisata under a local person and using its licence is a nominee licence holder. Other sectors in real estate, such as contractors, also use some nominees to be able to offer service of construction or get the building permit under the name of the landlord. Also read: How to Register a Holding Company in Indonesia (2024 Guide) Potential Risk of Having a Nominee for Your Business Having a nominee for your company in Indonesia is clearly illegal and against the principle of law of having restrictions. It is not rare to see the court cancelling agreements in relation with the nominee practice in Indonesia. The second risk is to have the nominee itself claiming its rights by selling the business, land, or taking over the business. Bali is full of stories of nominees, wives and spouse or partners taking over the business despite the agreements. Can You Make a Nominee Agreement More Secure? By definition, a nominee agreement is illegal. However, it is possible to partner with an Indonesian for certain activities and secure agreements. While some mechanisms, like loans or partnerships with foreign companies, are possible, using a nominee for your company in Indonesia is not a legal or beneficial option. Some lawyers or agents may recommend a pledge of shares, but this isn’t truly advantageous. Since the shares are under the Indonesian’s name (as foreigners cannot own them), the foreign party can only sell the shares to another Indonesian or attempt to force a sale, which ultimately isn’t beneficial for the business. We recommend you contact us to review the partnership agreement before entering into any deal. Alternatives to Nominee Agreement in Indonesia Since 2021, Indonesia has opened a lot of business sectors to foreign investment, and it is now possible to conduct business without having to enter into a nominee agreement. PT PMA can now purchase land certificates and conduct activities in some sectors. Setting up a PT PMA in Bali is a good alternative and a simple process to conduct business without a local person. The PT PMA allows 100% shareholding to foreigners in most of the sectors. The company can have local partnerships with local companies or provide some services as part of the local company’s activities. Also read: Your essential
- [How To Buy A Property In Lombok](https://ilaglobalconsulting.com/buying-property-in-lombok/): When it comes to buying a property in Lombok, buyers might find the scene slightly different from that in Bali if they are used to buying a property in Bali. The government spent a lot of investment to attract property investors. However, it is still sometimes difficult for foreigners to understand how to buy a property in Lombok. Buying property in Bali has long been popular, but many investors are now looking to Lombok for its lower prices, growing infrastructure, and promising return on investment. Unlike Bali, where leasehold is common, Lombok offers more straightforward freehold ownership through a PT PMA, giving foreigners stronger rights, building permits, and long-term security. This makes it an appealing choice for those seeking growth potential in a less saturated market, with the added advantage of leveraging expert guidance for due diligence, legal structuring, and smooth transactions. Lombok is one of the fastest-growing areas in Indonesia for foreigners to invest in. The price is cheaper than Bali and the return on investment starts to be interesting. Find out how to buy a property in Lombok as a foreigner. Buying a property in Lombok Leasehold versus Freehold in Lombok While in Bali leaseholds are the most common practice, Lombok offers a more straightforward and secure solution for buying a property. Most of the transactions in Lombok are done on a freehold property (SHM). The foreigner establishes a PT PMA and purchases the land and the property under its company. The buyer and the seller do a sales and purchase agreement (Akta Jual Beli) in order to transfer the land title under the company. Unlike the leasehold, the buyer acquires the right to build on the property and registers the land under their company. This brings some advantages as the ability in the future to leverage and eventually get a loan with the property. Can a foreigner buy a property in Lombok? A foreigner can buy a property in Lombok if they own a company or they purchase a leasehold (Hak Sewa). However, there are several types of property ownership in Indonesia, from the HAK MILIK to the HGB and HAK PAKAI. The highest level of ownership is HAK MILIK and only Indonesian individuals can own the HAK MILIK and transfer the ownership to the next generation. Foreigners willing to own land need to set up the company (PT PMA) and purchase under the HGB to own rights to build and do business on the land. The HAK PAKAI is a right to use with no real advantages except being able to own some rights to use the property. The process of buying a property in Lombok The process to buy a property in Lombok is simple and follows the different steps: Make an offer or review the offer of the seller and sign the offer Set up a PT PMA, open a bank account and inject the funds Pay a deposit to an escrow account Make an independent due diligence Proceed with the sales and purchase agreement Pay tax on the transaction Change the land title under your company Get the building permit The difference with a leasehold property is that the terms and conditions on the purchase are straightforward as the buyer becomes the registered holder of the land title. However, due diligence on the land is an important step to ensure the land can be developed properly for construction, the buyer can get the proper building permit (PBG), and the property is located in an area where the buyer can do short term rental on platforms such as Airbnb or Booking.com. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Things to consider before buying a property in Lombok Lombok is a new place of investment and the process to buy a property in Lombok can be confusing. Here are the things to consider before purchasing a property in Lombok. Real estate agent The easiest way to buy a property is to go with a real estate agent. There are several legitimate property agents in Lombok, but there are also several ones working closely with developers and having an interest in the seller. We recommend always doing due diligence on the Lombok real estate agent and making sure they have the proper licence to work as a real estate agent. The occupation is regulated by the Indonesian government and a real estate agent is supposed to be part of the AREBI association. Developers Lombok is a new playroom for a lot of developers. New projects are growing fast without a proper study on the Return On Investment for the buyer and proper legal due diligence on how the buyer can obtain the licence to get a legit revenue. Several big players are now investing in Lombok and are offering legitimate projects that are interesting to look at. Infrastructure The infrastructure in Lombok is still not as developed as the one in Bali or Jakarta. Despite the road being in good condition, the access to the property is sometimes unclear or not well-defined. Some villas or projects are still not connected to the public water system or the public electricity. Locations Lombok is a wide island and most of the new Lombok real estate projects are concentrated in the south of the island. Despite Kuta Lombok being the epicentre of this new development, lot of projects start to emerge on the South West of Lombok along Selong Belanak since the new road is connecting it with Kuta Lombok. The East of Kuta Lombok is not surrounded by the moto circuit which makes the area noisy for property owners who want to rent out their property. Business in Kuta Lombok
- [Understanding PT PMA And Indonesia Corporate Tax](https://ilaglobalconsulting.com/indonesia-corporate-tax-and-pt-pma/): As a foreigner, the first question before setting up a company, PT PMA in Bali, is to understand the corporate tax in Indonesia related to the activity. Indonesia offers some tax facilities and lower taxes than some western countries. Only 16% of the GDP is transited by the Indonesian government.  Foreigners setting up a PT PMA in Bali must understand Indonesia’s corporate tax rules, from income tax and VAT to local levies and BPJS. Tax rates vary by turnover, industry, and location, with incentives for small businesses. Compliance with BKPM, tax office, and reporting obligations is essential. PT PMA and Obligations A company such as a PT PMA has several obligations in Indonesia. The obligations are to several institutions such as the Ministry for Investment (BKPM), the tax office (KPP), local government or social security (BPJS). Difference between LKPM and Tax The LKPM report has to be submitted by a PT PMA in OSS every quarter. This report is not in relation to the tax office but to the BKPM. The purpose of this report is to follow the activities of the companies in Indonesia (not only PMA) financially and understand their assets, employees, and environmental impact. Social security (BPJS) Companies in Indonesia need to have employees and register at least 2 employees to the social security system (BPJS). The company has an obligation to pay each month a contribution with a calculation based on the gross salary of the employees. The amount is due the following month. Local tax (NPWPD) and National tax (NPWP) Depending on its activity a company has to pay taxes to the local government and to the national government. The company has to get a tax identification number and report its taxes to the appropriate tax office. The tax number for the local tax is called NPWPD while the tax number for the national tax office is NPWP. Understanding PT PMA Corporate Taxes in Indonesia Corporate Income Tax (CIT) The corporate income tax rate in Indonesia is set at 22%, although certain industries may encounter a special rate. This rate is applicable on the taxable income deducted from the deductible charges (result). For companies with a turnover under 50 billion IDR, the government provides a discount of 50% of the standard rate. The rate is progressive on the part up to 4.8 billion IDR. The government also facilitates business for small enterprises with a turnover of under 4.8 billion IDR per year. The tax rate is set at 0.5% on the turnover during the first 3 years. Final Income Tax Article 4(2) Some incomes in Indonesia are subject to a final tax, which is a crucial aspect of Indonesia corporate tax. The company doesn’t integrate this income into the CIT calculation, and the tax is applied separately. For example, the rental of land or buildings, such as a leasehold, is taxable at 10% and is not taxed again in the Annual Corporate Income Tax declaration. Example of final income tax Rate Land and building rental 10% Sales – Transfer of Lands and Building rights 2.5% Construction tax 1.75 to 6% Consulting on construction 3.5 to 6% Local Tax There are several types of local tax. The tax rate may vary depending on the activity of the company and on the region. Bali and Jakarta can apply different tax rates. The local tax is sometimes set at the same rate as the rental tax (10%) but can differ for activities such as spas or entertainment. We advise you to consult with us or a tax consultant before starting your activity to learn how tax can affect your business.  Withholding Tax (WHT) on service The withholding tax principle is a tax paid by the company on behalf of the seller of the service. The withholding tax on service is set at 2%. On an invoice at 100 the company has to pay 98 to the seller and 2 to the tax office. The payment is made the following month. It is important to request the NPWP of the seller in order to be able to pay the tax on behalf of the seller of the service. Employee and Personal Income Tax (PIT) As part of the Indonesia corporate tax obligations, each month the company has an obligation to withhold the tax on the gross salary of the employee. In other words, the company pays the personal income tax related to the salary on behalf of the employee. Yearly Income Tax rate Up to IDR 60 million 5% IDR 60 million – IDR 250 million  15% IDR 250 million – IDR 500 million  25% IDR 500 million – IDR 5 billion  30% Over IDR 5 billion  35% Value Added Tax (VAT) The VAT rate in Indonesia is at 11% in 2024 (some activities have a tax rate of 15%). Small enterprises don’t invoice VAT on some activities as long as their turnover does not exceed 4.8 billion IDR per year. The VAT has to be paid by the end of the following month. The VAT can be offset in the next month if the VAT collector has a negative balance. Land and Building tax (PPB) The tax known as Pajak Bumi dan Bangunan (PBB) is at a rate of 0.5% of the property valued by the tax office. The tax office defines a property value (NJKP) in relation to the average of the property transactions (NJOP). The PBB is equal to 0.5% of the NJKP. Stamp Duty Indonesia imposes a stamp duty on most of the official documents. The tax is paid on purchase of the stamp (materai). Planning of tax in Indonesia The taxes in Indonesia are paid at different moments during the year. Some taxes are paid monthly, while others are paid annually. Tax Payment CIT Between January and April 30th following the fiscal year Local tax By the 10 of the following month  Withholding tax By the 10 of the following month Tax on Salaries and BPJS By the 10 of the following month
- [Tax On Construction Services and Contractor In Bali & Lombok, Indonesia](https://ilaglobalconsulting.com/final-income-tax-construction-services-indonesia/): For individuals or developers dealing with contractors or a construction company in Bali, Indonesia, it is crucial to understand the tax involved in the construction of their project. Contractor tax on villa, apartment or hotel can differ from the service provider. In 2022, Indonesia has introduced Government Regulation No. 9 of 2022, which modifies Government Regulation No. 51 of 2008 regarding the final income tax on earnings from construction services.  Contractor tax rate in Indonesia Since 2022, this regulation has included updates to the classifications of construction services and adjustments to the final income tax rates in Indonesia: Tax for contractor with a business licence in Indonesia 1.75% for construction work carried out by service providers holding a small qualifying business entity certificate. The same tax rate applies or an individual with a work competency certificate. 2.65% for construction work executed by service providers with certificates other than those for small or individual businesses. 2.65% for integrated construction projects (combining construction work and consulting services) carried out by service providers with business entity certificates. 3.5% for construction consulting services by service providers with a business entity certificate or an individual work competency certificate. Tax for contractor without a business licence in Indonesia 4% for construction work conducted by service providers without a business entity certificate or an individual work competency certificate. 6% for construction consulting services by providers without a business entity certificate or an individual work competency certificate. If the service provider is a permanent establishment (type BUJKA), the income tax rates mentioned above do not include tax on the profits after the final income tax. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Who pays the construction tax in Indonesia? In the event the contractor provides a service to a company taxpayer, the company has to withhold the tax at the tax rate mentioned above. The buyer needs to withhold the tax and pay the contract on a net basis. On the other hand, if the taxpayer is an individual, the payment of the tax is fulfilled by the contractor.  Also read: Personal Income Tax in Indonesia for Residents & Expats
- [Get to know BPJS (Healthcare and Social Security) in Indonesia ](https://ilaglobalconsulting.com/bpjs-healthcare-and-social-security-indonesia/): BPJS is the authority to provide social security in the forms of health and employment benefits. These two aspects are crucial for the general public and workers to enhance their well-being. Actually Health and Social Security is mandatory for companies that are established in Indonesia teritorry and have to onboard their employees in the BPJS program.  BPJS Indonesia is a government-mandated social security system that provides healthcare (BPJS Kesehatan) and employment benefits (BPJS Ketenagakerjaan) for citizens, foreign workers, and employees of companies operating in Indonesia. Established in 2014, BPJS ensures access to medical care, work accident protection, pensions, and other essential benefits, with contributions shared between employers and employees. Registration is compulsory for companies and individuals meeting eligibility requirements, making BPJS an essential part of living and working in Indonesia. What is covered, and what benefit will we get? Let’s dig deeper into it! What is BPJS? BPJS is a legal institution designed to carry out social security programs that have been officially established since 2014. BPJS offers several programs, including National Health Insurance (JKN). JKN is administered through an insurance system, in which citizens pay a small fee to save for future medical bills. In principle, all Indonesian citizens must engage in BPJS Indonesia programs. This also includes foreigners and workers who have lived in Indonesia for at least six months to contribute to the premiums program. Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  Type of BPJS BPJS aims to ensure the provision of guarantees that meet the basic living needs of every participant and/or their family members in a dignified manner. In order to do so, the government classified the type of BPJS as follows: BPJS Kesehatan (Healthcare Program) BPJS Ketenagakerjaan (Social Security Program) BPJS Kesehatan or Healthcare Program What is BPJS Kesehatan? As explained, BPJS Kesehatan aims to offer a healthcare program to all residents, so when you register, you will be covered as follows: Outpatient Service (Rawat Jalan) Basic Health Care Provider: From your current location, you can contact the closest clinic or government clinic provider (Puskesmas) and get treatment with the available doctors you choose. Advanced Health Care Provider: If the basic healthcare provider is not able to provide the service that you need, they will refer you to a hospital or advanced medical clinic. Inpatient Service (Rawat Inap): if you require further medical treatment and are hospitalized. How much is the contribution needed to pay? The rate contribution is as follows: Employer Contribution Employee Contribution 4% 1% The maximum monthly salary or pay used as the basis for computing the contribution amount for participants is Rp12,000,000.00 (twelve million rupiah); the provincial minimum wage is the lowest monthly pay or salary used as the basis for computation. When should I pay the BPJS? Employers pay the BPJS contribution on the 10th of every month, or on the next business day if the 10th falls on a weekend or public holiday. How to register a BPJS Kesehatan? It’s pretty straight forward, you just have to register the company/legal entity and the employee after.  Visit the website of https://new-edabu.bpjs-kesehatan.go.id/registrasibadanusaha/ Fill in the form  Submit  Continue registering the employees, and you will get a notification. Other than that, you need to prepare the following documents Company information, such as location, name, contact, form of business entity, type of main business, and others Company contact person information, such as name, position, telephone number, and email address for the activation link delivery process Information on participation in the JKN program, such as number of workers, number of families, Business License Number, NPWP, and others Also read: Working contract in Indonesia: A guide for your agreements BPJS Ketenagakerjaan or Social Security  What is a BPJS Ketenagakerjaan program? BPJS Ketenagakerjaan is a legal institution that has a program to protect all formal employees and non-formal employees in Indonesia from a specific social risk.  BPJS Indonesia, through BPJS Ketenagakerjaan, administers Employment Social Security through five Employment Social Security Programs: Work Accident Insurance (JKK), Job Loss Insurance (JKP), Old Age Security (JHT), Pension Security (JP), and Death Insurance (JKM). Who paid for the BPJS Ketenagakerjaan insurance? Technically, the ones that paid for the insurance are employer and the employee with the following bracket: Program  Paid by employer Paid by employee Work Accident Insurance 0.24% 0% Old Age Security 3.7% 2% Pension Security 2% 1% Death Insurance 0.3% 0% The government funds the job loss insurance, not the employer, and provides it based on specific terms and conditions if you meet the eligibility criteria. Also read: How to Open a Bank Account in Indonesia for Foreigners. When should I register BPJS Ketenagakerjaan? Ideally, when you start working in a company and pass the probationary period, you will be registered, and it is compulsory for the company to register.  Why is it important?  Having BPJS Ketenagakerjaan provides protection against work accidents, offering additional security for workers and their families. If you’re a foreign worker residing in Indonesia for more than 180 days, you must have BPJS Ketenagakerjaan for your work permit renewal. If a company fails to register its employees, authorities will issue written warnings, impose fines, and restrict access to certain public services. How to register BPJS Ketenagakerjaan? Before you are able to register the employees, you need to register the company, you may see the following how to register: You can either register online by clicking here or going to the nearest branch  Fill in the form  Submit and activation  Fill in the employee information, please note you need at least register two people. Get the bill and pay  You
- [Your Guide to Register Your Product in Indonesia](https://ilaglobalconsulting.com/product-registration-indonesia/): Indonesia, with its vibrant archipelago and rising middle class of over 270 million consumers, stands as a tantalizing prospect for ambitious businesses globally. Its potential is undeniable, driven by a booming economy, a tech-savvy young population, and an increasing demand for imported goods. But unlocking this potential hinges on navigating the intricacies of its regulatory landscape. This article covers the product registration in Indonesia. Indonesia: A Market Ripe for the Picking Imagine a marketplace buzzing with 270 million potential customers, their wallets steadily growing wider. That’s Indonesia, the largest economy in Southeast Asia, where consumer spending is projected to reach a staggering $1.2 trillion by 2025. This market, fueled by a rapidly rising middle class and tech-savvy generation, is a goldmine for distributors willing to venture beyond their borders. Key Takeaways Indonesia’s growing economy and sector liberalization offer attractive opportunities for foreign investors, but challenges such as protectionism and infrastructure issues must be navigated carefully, especially regarding product registration. The BPOM regulates the safety and effectiveness of products in Indonesia, requiring meticulous registration processes and ongoing compliance checks, including initial approvals, inspections, and post-market surveillance. Product quality standards are central to Indonesian market entry, with international certifications such as ISO 9001 being crucial for compliance and market trust, and the BPOM oversees registration for diverse categories including food, beverages, medicines, health supplements, medical devices, and cosmetics. Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  Navigating Indonesia’s Product Landscape The economic advancement of Indonesia has been remarkable, especially under President Joko Widodo’s leadership. The nation is moving steadily towards becoming a higher-income economy with its GDP nearly reaching $1.32 trillion USD by 2022. Thanks to the efforts in diversifying the economy and improving infrastructure, along with sector liberalization, there exists an inviting environment for foreign investors. Nevertheless, Indonesian consumers are exhibiting prudent spending habits due to prevailing economic fears. This behaviour translates into trends like buying smaller product sizes and allocating more budget towards health-related goods and services. Simultaneously, e-commerce platforms have seen substantial growth as consumers shift toward online purchases that offer better deals. It remains crucial for potential investors to be aware of continuing challenges such as protectionist policies, corrupt practices within certain sectors, and inadequate infrastructure that could hamper the operations of foreign companies interested in entering this space. A thorough comprehension of these impediments is essential. Similarly, so is knowledge concerning procedures for product registration in Indonesia if one intends to secure success while penetrating the Indonesian market. The Role of BPOM in Product Registration Companies planning to enter the Indonesian market should become acquainted with Badan Pengawas Obat dan Makanan (BPOM), which serves as Indonesia’s equivalent of the Food and Drug Administration (FDA). BPOM plays a crucial role in drug and food control within Indonesia, requiring that all products be registered with this agency prior to their distribution. The product registration process overseen by BPOM is thorough. It necessitates that local entities carry out the submission for registration. Through its evaluation procedures, BPOM guarantees only those products conforming to safety and efficacy standards are allowed into the consumer market. BPOM’s responsibilities encompass: Initial regulatory approval processes Educational initiatives for consumers Consistent inspection routines Ongoing post-market monitoring These measures are implemented with the objective of maintaining continuous compliance with established safety and quality guidelines. Read also: How to Register Trademark in Indonesia (2025 Guide) Meeting Quality Standards for Products in Indonesia Product registration in Indonesia is an important step to be taken in maintaining quality. Certifications such as ISO 9001 validate compliance with safety and quality standards, fostering consumer confidence and increasing market efficiency. The economic impact of these certifications will continue to be reflected in GDP growth and per capita income as they increase with the number of certified products. The certification bodies are required to obtain Accreditation from the Indonesian National Agency to maintain adherence to quality norms. The investment climate created by this high quality assurance not only builds consumer confidence but also positions Indonesia as a promising destination for foreign investment and global partnerships. Essential Steps for Product Registration with BPOM The commencement of the product registration process in Indonesia with BPOM can be initiated through an online application on either the website of BPOM or Indonesia National Single Window (INSW) using Single Sign-On. This procedure has been established to facilitate a more efficient way to acquire business licenses and import permits. Each product that is registered must adhere to precise labeling standards, which include receiving designations such as ML for imported food products, MD for those manufactured domestically, and SP designated specifically for small and medium enterprises that are being mentored. To successfully navigate the registration process with BPOM, one must submit several administrative documents, including: A drafted application letter The API denoting the Importer’s Permit A formal Authorization Letter from overseas manufacturers Certificates proving adherence to Good Manufacturing Practices (GMP) SIUP refers to Trading License The company’s NPWP signifying Taxpayer Identification Number Specific documentation may vary depending on what type of product is being registered. This might include acquiring a NIB reflecting the Single Business Identity Number, Trade Business License, or an API pointing towards Importer Identification Number. Based on the specific category under which a product falls within their inventory list, BPOM retains discretion in requesting Documents if deemed necessary. Food and Beverage Regulation and Registration in Indonesia The BPOM categorizes food and beverage products into four levels of risk. Very Low Risk: Such items usually have minimal processing and a limited number of ingredients. Low Risk: This group consists of processed foods, such as instant noodles. Medium Risk: These are products
- [Comprehensive Guide For Your Tax In Indonesia](https://ilaglobalconsulting.com/comprehensive-guide-for-your-tax-in-indonesia/): The tax rate in Indonesia can be confusing for a non initiate person or company. This articles review the different types and principles of tax in Indonesia for expats and companies in Indonesia or Bali. Definition of taxpayer in Indonesia In Indonesia, a taxpayer is defined as an individual or entity that is obligated to pay taxes in the country despite being a resident or non-resident. This obligation is due to whether you are earning income, conducting business, or holding assets within Indonesia. Here are the different categories of taxpayers: Individual Taxpayers: Both residents and non-residents who earn income in Indonesia are considered taxpayers Corporate Taxpayers: Legal entities established or domiciled in Indonesia or that derive income from activities conducted in Indonesia. Non-Resident Taxpayers: Individuals or entities that do not reside or are not established in Indonesia. Those non-residents are subject to a withholding tax in most circumstances. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Principle of taxable income and final tax in Indonesia Principle For legal entities and individuals, it might be sometimes confusing to define how the income is taxable. Indeed Indonesia classifies the turnover into 2 different categories: Taxable income under the Corporate Income Tax and Personal Income Tax Taxable income under the final tax By final tax Indonesia defines that an income taxed under the final tax is not subject to a taxation under the personal income tax for an individual and under the corporate income tax for a corporation. Also read: Understanding VAT and Income Tax For Crypto Assets in Indonesia Income under the final tax (Article 4 PPh Final) Interest from deposits, savings, and Bank Indonesia Certificates Interest from bonds Discount on State Treasury Bills (SPN) Lottery winnings Sale of shares and other securities Income of venture capital companies from the sale of shares or the transfer of equity in their portfolio companies Income from the transfer of ownership of land and/or buildings Income from the transfer of real estate under investment contracts Income from construction services Income from the rental of land and/or buildings Income of domestic shipping companies Income of foreign shipping and/or aviation companies Income of foreign taxpayers with trading representative offices in Indonesia Excess depreciation on fixed assets Individual Income Tax (IIT) Rate in Indonesia General rules Individuals in Indonesia are subject to Individual Income Tax (IIT) or Personal Income Tax (PIT) with a progressive rate.  This means the tax rate increases as income rises. The rates range from 5% to 35%, depending on the taxpayer’s income bracket. Residents are taxed on their worldwide income, while non-residents are only taxed on income made in Indonesia. Up to IDR 60 million: 5% IDR 60 million – 250 million: 15% IDR 250 million – 500 million: 25% IDR 500 million – 5 billion: 30% Above IDR 5 billion: 35% Exemption for foreigners Foreigners are taxed on their worldwide income but can claim a tax exemption and require the principle of territoriality during their first 4 years of residence based on the tax attachment II of PMK No. 18/ PMK.03/2021) and if the f reigner has been in Indonesia for less than 4 years (Nomor 18/PMKc03/2021). After 4 years, the foreigner is taxed on its worldwide income. Exemption for lower salaries Indonesia provides a tax exemption and does not tax revenues up to 54 million if the revenue is issued from a salary. Corporate Income Tax (CIT) Rate in Indonesia General Rules The Corporate Income Tax (CIT) rate in Indonesia is at a rate of 22%. However, certain exemption or tax facilities apply for small and medium businesses who are eligible and some revenue are subject to a final tax without being taxed under the CIT. Indonesia provides a tax facility for businesses with a turnover below 50 billion IDR with a tax rate between 11 and 13%. Tax facilities and tax exemptions Certain businesses can claim a tax rate at 0.5% on their turnover during the first 3 years of their establishment for the revenue doesn’t exceed 4.8 billion IDR (around 300,000 USD) per year. However not all businesses are eligible for this tax facility. We recommend consulting your tax consultant or ILA for more information. Additionally, certain industries or regions, such as Sanur and Batam, may benefit from specific tax incentives, including lower rates or tax holidays. Branch Profit Tax (BPT) The profit of branch offices operating in Indonesia for a foreign company is subject to a tax rate of 20%. The tax rate can be lower under certain circumstances. We recommend consulting the tax treaty to identify the applicable tax rate. Dividend Tax Rate in Indonesia The applicable tax rate for residents is at 10% while it is at 20% for non-residents. However certain tax treaties with Dubai, Singapore, Hong Kong allow to get a lower tax. Value-Added Tax (VAT) Rate The VAT in Indonesia is at 11% in 2024 and could increase to 12% in 2025. Legal entities have to invoice the VAT if their revenue exceeds 4.8 billion per year or if they conduct activities with a scope that requires the VAT. The VAT can be offset every month based on the balance between the VAT collected and the VAT paid. Withholding Tax (WHT) Rate The withholding tax system is probably the most difficult system to understand for new taxpayers in Indonesia. The withholding tax system forces the taxpayer to withhold a tax on behalf of the person subject to the tax. Individuals with Legal Entity If the seller of a good or service is dealing with a legal entity (type PT PMA or PT PMDN), the company is in charge of withholding the tax and paying on
- [Company Profile In Indonesia - Indonesia Company Search](https://ilaglobalconsulting.com/company-profile-in-indonesia-company-search/): There are several reasons you might need to check the company profile of a company in Indonesia. Whoever you are, an organisation, a NGO or an individual it is important to know with whom you are dealing and if the company is legit. Overview : This guide explains why checking a company profile in Indonesia is essential for businesses, NGOs, and individuals before entering into agreements. It highlights the importance of verifying a company’s legality, licenses, shareholders, and directors to avoid fraud or disputes, especially when purchasing property or signing commercial contracts. The article explains that before you can check a company’s profile, you first need to collect its legal name, not just the trade or brand name, but the official registered name, usually starting with “PT” in Indonesia. Once you have the legal name, you can use the AHU (Administrasi Hukum Umum) registry, which is the official Indonesian government database, to look up the company’s information. It also emphasizes the complexity of Indonesia’s legal system and recommends seeking professional legal assistance, like ILA Global Consulting’s services, to ensure compliance and protect your interests. Know your partners The KYC process is now commonly used by companies online or banks before entering into business relationships. However, as individuals, it’s important to know how to verify the legitimacy of the company you’re dealing with. This includes conducting a company background check to understand who the shareholders are and whether the director is legitimate. By performing a thorough company background check, you can ensure that the company you are engaging with is a legitimate legal entity in Indonesia. Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  Purchasing properties When it comes to purchasing a property in Bali, it is crucial for your contract to check if the developer is a legit entity, and if the real estate agent has the right licence to take a brokerage commission. Those parties will be in a contract, and you need to make sure you can turn yourself to the court against a legit entity in case of dispute. Commercial agreement As a legal business or individual, doing business in a foreign country can be challenging to know with whom you are dealing. Having a website is not a guarantee of a legitimate entity, and the consequences of entering into a deal with a company without checking the company profile can be serious. No one wants to start a business with a fake company or a director pretending to be one of the legitimate ones. Reasons to check the company profile in Indonesia Check if the company is legal Ensure the licences are still active Make sure the director signing the documents has the right Check the real shareholders and who is the owner of the company How to check the company profile in Indonesia Collect the data The first step is to know the name of the company and ask for the legit name. The portal name or commercial name can be different from the real name or legal name of the company. To conduct a proper company information lookup, you need to request the name of the company, starting with PT. Check to AHU It is possible to check with the Indonesian registry AHU the company profile. Although some websites can request 100 USD to check a company, the Indonesian government only charges a small fee to check the profile of the company. Also read: How to Register a Holding Company in Indonesia Report of a company profile After requesting the report, here are the details you will get: Company type (PT PMA, PT PMDN, etc. )and classification (KBLI) Licensing The date of last revisions to the Deed of Establishment. Registered address Size of capital. Number of shares and price per share. Shareholders and how many shares they own Directors and commissioners Key Terms for Company Profile Indonesia Keyword Definition KYC (Know Your Customer/Partner) A due diligence process used by banks, companies, and individuals to verify the legitimacy of a business entity before engaging in transactions. Company Background Check The process of verifying if a company is legally registered, who its shareholders are, and whether its directors are legitimate. AHU (Indonesian Registry) The official government platform where company profiles can be checked, including ownership, licences, and legal status. Legal Advice in Indonesia Professional support from consultants or lawyers to navigate Indonesia’s complex regulations, licences, and legal documentation. Company Profile Report A formal document that provides key company details such as type, classification (KBLI), licences, capital, shareholders, directors, and address. Ask to ILA If you can’t proceed with the payment or cannot check the company profile on AHU with the Indonesian registry, you can contact us for assistance.
- [Employment Contracts in Indonesia: A Comprehensive Overview](https://ilaglobalconsulting.com/decoding-employment-contracts-in-indonesia-a-comprehensive-overview/): As business owner of a PT PMA or foreigner working in Indonesia, the working contract in Indonesia is governed by the Government Regulation No. 35 of 2021, known as GR 35/2021. The law identifies two primary types based on the nature of work: the Fixed-Term Employment Agreement (PKWT) and the Indefinite Time Employment Agreement (PKWTT). Employment contracts in Indonesia play a pivotal role in providing clarity on rights, obligations, and legal protection, especially in the context of employment termination. It is also essential before applying for a working visa to understand the employment rules. What is an employment contract? How is it in Indonesia? An employment contract is a bilateral agreement, typically a private one, between two parties, one of whom (the employer) is in a position of authority over the other (the employee). This relationship is codified in a document called a “work contract.” This is important because, if no formal contract has been signed, a person in that relationship can literally argue that their agreement is a work contract and recast it accordingly. Indonesia regulates the working relations with the Ministry of Law and Human Rights and the Deputy Ministry of Kemnaker. A working contract in Indonesia has to follow some provisions but in general both parties can define clauses as much as they want as long as they are in line with the manpower law. A working contract in Indonesia can refer to the company regulation if this one has been approved by the ministry. The working contract defines the relation and how parties will interact to each other and their rights and obligations during the duration of the contract. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Key Requirements for Working Contract in Indonesia Apart from complying with Article 1320 of the Criminal Code, formulating an employment contract must adhere to specific provisions outlined in Law 13/2003. These include mutual agreement, legal capacity, a specified job, and alignment with public order, decency, and applicable laws. Types of Working Contracts in Indonesia Fixed-Term Working Contract (PKWT) PKWT, often utilized for time-bound projects, is a written agreement registered with the manpower office. It is valid for a maximum of five years or until project completion. If the work extends beyond the contract period, an extension can be agreed upon, not exceeding an additional five years. GR 35/2021 mandates compensation to employees at the conclusion of the working period. Indefinite Time Working Contract (PKWTT) In contrast, PKWTT establishes a permanent employment relationship, applicable to all types of work. Unlike PKWT, PKWTT can be made verbally, with no mandatory registration. If an oral agreement is reached, the employer must issue a written letter of appointment to the employee. Differentiating PKWT and PKWTT The distinctions between PKWT and PKWTT are notable, particularly post the enactment of the 2020 Job Creation Law. A summarized table based on GR 35/2021 highlights differences in terms of the type of work, working period, agreement form, registration, and termination of employment relations. Difference PKWT PKWTT Type of work Limited to specific non-permanent jobs Not limited; encompasses both permanent and non-permanent roles Working period Limited, based on a maximum of 5 years or task completion Unlimited Agreement form Must be written Written or oral (accompanied by a letter of appointment) Registration at Ministry Mandatory within 3 days of signing PKWT Not mandatory Termination of Employment Ends by law at the completion of work or task Either party can terminate; compensation based on PKWT period elapsed Probationary period Not allowed Allowed, with a maximum of 3 months Compensation for Termination PKWT compensation; Article 62 of Law 13/2003 Severance pay, service reward, compensation for rights, or severance pay Essential Elements in Employment Contract in Indonesia According to GR 35/2021, PKWT must include company details, employee information, job specifics, wages, rights and obligations, validity period, and signatures of both parties. PKWTT, as per Law 13/2003, should encompass company details, employee information, job specifics, wages, working conditions, agreement details, and signatures. The Significance of a Written Employment Contract in Indonesia An employment contract is an important document because it clearly defines the rights and obligations of both parties and provides legal certainty by serving as a main reference in the event of disputes. Its significance lies in ensuring clarity on individual rights and duties, legal protection, minimizing potential conflicts, and adhering to agreed-upon terms. Conclusion: Candidates need to careful about what they are signing and whether in these employment contracts all the terms are clearly understood before signing the across as employment contracts are important forms of legal protection for both employee and employer. Understanding their implications well paves the way for a more equally matched and legally protected relationship in the workplace in Indonesia. Special Considerations for Foreign Workers: Temporary Employment Contracts in Indonesia Working Contract for Foreigners in Indonesia and Bali In line with the previously discussed types of contracts contingent on job nature, a distinct provision exists for foreign workers in Indonesia. As stipulated by Article 42 of the Manpower Law, employment contracts for foreign employees must specifically be temporary in nature. In essence, this implies that expatriates are restricted from assuming permanent positions within the Indonesian workforce. However, avenues for further employment with different companies become viable once the existing contract concludes. Position Limitations for Expatriates Moreover, the scope of positions available for expatriates is constrained. As outlined in the Ministry of Manpower Regulation No. 228 of 2019, specific positions are permissible for expatriates. Foreigners cannot conduct any kind of job in any business sector. Some sector are prohibited to foreigners. We recommend checking with ILA or HR which job positions are available for foreigners if you consider working in Bali
- [Driving Licence Requirements For Foreigners In Bali](https://ilaglobalconsulting.com/driving-licence-requirements-bali/): Whether you live in or come to Bali and Indonesia for holidays, you may want to buy or rent a motorbike or a car in Bali. As all countries in the world there are some requirements to have driving licence in Bali. With its beautiful surroundings and great weather, going around by yourself without a driver is an affordable and exciting way to explore the islands. Do I need a driving license in Bali? To drive in Bali legally, you need an Indonesian driving license (SIM) or an International Driving Permit (IDP) attached to your home license. SIM A is for cars, SIM C is for motorbikes. Foreigners can apply in Bali with a KITAS, SKTT, medical check, and by passing theory and practical exams. Requirements to rent a motorbike in Bali Like other countries in the world, Indonesia has signed international treaties and recognised other driving licences from other countries. However, having a licence from your country is not sufficient. The travellers need to have an international driver licence attached to their national licence. The international licence needs to authorise you to drive the type of vehicle you are looking to drive in Bali. For example, if your international driving permit only authorizes you to drive a car, you cannot rent and drive a motorbike, and vice versa. The renter still accepts you to rent the motorbike or the car. However, if there is a police control, you will commit an infraction and need to pay a fine. In a worst-case scenario, if you have an accident, your insurance will not accept to refund you. Remember that hospitals are not like some countries in Europe, and you need to pay the bill if you want to be taken in charge by the hospital. Also read: How to Open a Bank Account in Indonesia for Foreigners (2024) Type of Driving License in Bali Driving licence for car and motorbike in Bali Indonesia has several types of driving licences depending on the type of vehicle you drive. The driver’s license in Indonesia is called a SIM (Surat Izin Mengemudi Indonesia). The minimum age in Indonesia to drive a car or a motorcycle is 17 years old. Obviously, in Bali, a lot of locals drive under age and do not respect this, but again, what you may see is not what needs to be done. Do not let your kids under age drive and expose them to a fine or bigger issues. SIM A: Driving licence for a car SIM C: Driving licence for a motorcycle Requirements to get the driving licence in Bali KITAS and SKTT Application form Fingerprint Medical certificate Psychological test result Pass both theory and practical or simulator examination If you wish to get your driving licence and get more information about it, feel free to reach out to us. We will let you know more about the process and how to get your driving licence. How to purchase a motorbike or a car in Bali As a foreigner, it is possible to purchase a motorbike or a car in Bali. Foreigners can get the administrative documents under its name, and it is cheaper to rent a motorbike or a car continuously. The requirements to purchase a motorbike or a car are as follows: Having a KITAS Get your SKTT (Civil registration) Be above the age of 18 years old Register the motorbike or the car with the local authorities Having an Indonesian driving licence
- [Guide On Types of Companies in Indonesia](https://ilaglobalconsulting.com/type-of-company-in-indonesia/): Indonesia has several types of legal structure depending on the purpose of the activity, the type of shareholders. The type of company in Indonesia can affect the liability and exposure of the shareholders. Type of Company in Indonesia Type of Company Description Foreign Ownership Hiring Foreigners Additional Notes PT PMDN (Local Owned Company) A Limited Liability Company with at least 2 shareholders, where investors are liable for their investment amount. No Yes, as employees or directors Must sponsor a working permit (IMTA) for foreigners. PT Perorangan A Limited Liability Company owned by a single investor. Suitable for individual ownership. No No   CV A legal entity that can be opened under a personal name, without any capital requirement. No No Personal liability extends to personal assets. PT PMA (Foreign Owned Company) A Limited Liability Company with at least 2 foreign shareholder. The capital requirement varies by activity. Yes Yes Shareholders can apply for investor visas and KITAS. KP3A – KPPA – BUJKA Representative Office Represents an overseas company in Indonesia to facilitate relationships without generating income locally. Yes Yes Established in major cities; suitable for non-income activities. Indonesia has different type of legal structure to operate a business activity. Certain type of company structure can only be opened by Indonesian citizens while others accept foreigners as shareholders and investors in the company.  Local owned company (PT PMDN – PT Perorangan) CV is a legal entity allowing a person to open a company under its personal name. This type of entity doesn’t require any capital. The risk is important as the person is responsible under its personal name and assets for any issues occurring with the activity.   PT PMDN (commonly called Local PT) is a Limited Liability company with 2 shareholder minimum. The investors are liable to the paid up capital of the company. A PT PMDN can hire a foreigner as a director or employee. The company needs at least 1 billion IDR as paid up capital to sponsor a working permit (IMTA) for the foreigner. Capital requirements for a PT PMDN: Small enterprise: IDR 50 million – 500 million. Medium enterprise: IDR 501 million – 10 billion. Large enterprise: more than IDR 10 billion.   PT Perorangan is a limited liability company under one single ownership. This form of company is suitable for a single investor. Foreign Owned Company (PT PMA) A PT PMA is a type of company having at least two foreigner as a shareholder. The PT PMA is a limited liability company (LLC). The capital requirement of the PT PMA differ from one activity to another. The minimum capital of a PT PMA is 10 billion IDR. The company can hire foreigners and operate activities in Indonesia based on the business activities approved during the company’s establishment. The shareholders of the PT PMA can apply for an investor visa and obtain a limited stay permit called (KITAS). The director of the company needs to get a KITAS in order to obtain a tax number, namely NPWP. Also read: 12 things to know to create a company in Indonesia Representative Office A representative office is a legal entity representing another company in Indonesia in order to facilitate the relationship between the company overseas and its interests in Indonesia. A company having providers or some projects in Indonesia can choose to open a representative office for its short-term interests or if the mother company doesn’t plan to generate income on the Indonesian territory. A representative office can hire foreigners and Indonesian citizens. The foreign director (CRO) of the representative office has to apply for a working permit. The entity can be established in capital regions such as Denpasar, Surabaya, Jakarta, Batam, etc.
- [Property Tax in Indonesia: A Comprehensive Guide](https://ilaglobalconsulting.com/navigating-property-taxation-in-indonesia-a-comprehensive-guide/): In this article, we’ll review the key aspects of property taxation in Indonesia, focusing on rental income, land and building tax, and income tax implications for property owners. Those tax rates are important to know before leasing or purchasing a property in Indonesia. Property taxation in Indonesia and Bali BPHTB – Sales and purchase tax When it comes to settling a buying property transaction, both parties have some tax obligations. The first one is the land acquisition tax or Bea Pengalihan Hak atas Tanah dan Bangunan (BPHTB). The buyer and seller have to pay the tax before the notary signs the deed. Land and tax is calculated at a flat rate of 5% for the buyer (the seller pays an income tax PPH at 2.5%). The tax for the buyer is calculated as follow. The calculation of the tax varies from a region to another one based on the non-taxable real estate objects, called Nilai Perolehan Objek Pajak Tidak Kena Pajak (NPOPTKP) that is deducted from the Tax Object Acquisition Value, called Nilai Perolehan Objek Pajak (NPOP). BPHTB = 5% x (NPOP – NPOPTKP) Let’s take an example for a property sold at 3 000 000 000 IDR in Jakarta. The NPOP is then equal to 3 Billion IDR. The government is fixing the NPOPTKP at Rp 100,000,000 IDR in Jakarta the calculation becomes: 5% x (Rp 3,000,000,000 – Rp 100,000,000) = Rp 145 000 000 PBB – Land and Building Tax One of the property taxes in Indonesia is PBB. The land and building tax in Indonesia (Pajak Bumi dan Bangunan) is with a maximum national rate of 0.5%. Each region in Indonesia defines its own rate. The local government determines: The NJOP (Nilai Jual Objek Pajak) that can be described as the sales value of the property.  This amount is the average price obtained during the last real estate transaction. If there has not been a real estate transaction recently, the NJOP is determined by the local government by comparing the property on the market. NJKP (Nilai Jual Kena Pajak) is the appraisal value from a calculation using the NJOP. 40% for properties above IDR 1 billion 20% for properties under IDR 1 billion To make it simple, if the property transaction is at 2 000 000 000  the PBB tax will be 20% x 2 000 000 000. The final tax will be 0.5% x 20% x 2 000 000 000 = 20 000 000 IDR. PPH – Income tax and Lease tax in Indonesia Lessors are responsible for this tax. The tax is based on the lease value. The amount of the lease tax in Bali is at 10%. This tax is due after the signature of the lease and the transaction. In case of freehold property, the income tax from the seller is at 2.5%. The tax is calculated on the value of the income (sales price). VAT (PPN) Oftenly missed, buyers may have to pay a VAT on the property called PPN Pajak Pertambahan Nilai. The lessee or the buyer needs to pay the tax when a transaction occurs with a contractor or a developer registered as VAT collector. The tax rate is at 11%. However this tax doesn’t apply for second hand properties. It is important to check if the seller will collect the VAT for the government and is in right to charge the VAT to you. Construction tax 1.75% for a company with a classification as a small business or for individual with a competency certificate 4% if the company has no business qualification 3.5% for a company declaring itself designing and managing the building project as a developer (6% if the company has no business qualification) PPH is due by the contractor except if the client is a company with a tax number in Indonesia. In this case the client needs to withhold the tax. Stamp Duty (DST) The Payment of Documentary Stamp Tax serves as legal evidence during the signature of the both parties. The standard stamp duty has changed the last few years but is stabilizing at less than 1 USD. How can we help you? Property tax compliance and tax planning For individuals and businesses involved in property transactions, ILA Global Consulting offers expert guidance on property tax planning. We help clients to optimize their tax liabilities while ensuring full compliance with Indonesian tax laws. This includes assistance with Transfer Tax (BPHTB), Land and Building Tax (PBB), and other related taxes. Transaction structuring We assists our clients in structuring their transactions in the most tax-efficient manner. By considering the specific details of each transaction, they can provide tailored advice on how to minimize tax exposure while adhering to legal requirements. https://www.pajak.go.id/id/peraturan/perubahan-kedua-atas-peraturan-pemerintah-nomor-51-tahun-2008-tentang-pajak-penghasilan https://www.pajakku.com/tax-guide/12413/UU/1%20Tahun%202022
- [Visa Extension In Bali - Complete Guide For 2025](https://ilaglobalconsulting.com/bali-visa-extension/): For travellers in Bali or KITAS holders, you may wish to extend your visa and stay in Bali and Indonesia longer  This article reviews how to extend your stay permit or KITAS. Visa eligible for the extension Visas in Bali are granted for a certain period of time, depending on the type of visa. Bali visas are extendable while you are still in Indonesia. Most of the visas are now extendable and are done through the online system for visas that have been applied online. Here are the Bali visas that can be extended: Visa on arrival (VoA 30 days) Single entry visa (ex B211A – Type C) Multiple entry visa (type D) KITAS/ KITAP (Investor KITAS, Remote Worker KITAS, Working KITAS etc) Before applying for the Bali visa extension, it is necessary to familiarize yourself with the extension process and know when to apply. Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. Requirements to extend your visa It suits to detail here the two families of visa  Short term visa with a validity below 180 days per year and the residence permit for a validity over 180 days. Passport with a validity of 6 months Address in Indonesia Bank statement Outbound ticket from Indonesia for some visas, such as the VOA Make sure to meet these requirements to smoothly process your Bali visa extension. Also read: Obtaining Residence Permit In Bali (2025 Complete Guide) Visa On Arrival The visa on arrival is granted to travellers entering Indonesia without any online visa. The validity of the visa is 30 days. The initial period of 30 days can be extended for another 30 days directly at the immigration office in Bali. Tourists eligible for a 60 days tourist visa can apply directly online  The list of countries is available on the website of the immigration. To extend at the immigration office in Jimbaran, Denpasar or Singaraja, the traveller needs to bring the following documents: An extension fee of 500 000 IDR Visa on Arrival Receipt Passport Photo Form provided by the immigration Single and multiple entry visa type C and D (ex B211 and D212) You can extend the tourist and business visa, which is valid for 60 days, twice, adding 60 days each time. The total stay cannot exceed 180 days. Indonesian immigration doesn’t accept any extension at the immigration office, and all extensions are now handled online to simplify the process. KITAS extension in Bali KITAS holders need to start their application renewal online  The resident needs to provide a certain number of documents depending on the type of KITAS and show the applicant fulfil the requirements. General requirements: Passport validity with 6-month validity Photo Address in Indonesia SKTT Sponsor Documents KTP of the sponsor Specific requirements Proof of investment for an Investor KITAS BPJS contribution for a worker with a working KITAS NPWP and annual income tax contribution NEW KITAS and KITAS cancellation For a Bali visa extension, KITAS holders must cancel their KITAS if they plan to leave or change sponsors. This process, called EPO (Exit Permit Only), requires applying at least 7 days before the KITAS expires. After cancellation, the foreigner has 7 days to leave the country and can then apply for a new KITAS. If the KITAS expires while the foreigner is outside Indonesia, they must apply for an ERP (Exit Re-Entry Permit) before getting a new KITAS. It is important here to understand the difference between a new KITAS application and a renewal  The renewal application applies when the applicant does not change its sponsor and continues with the same type of KITAS and sponsor  A new KITAS applies when the type of KITAS and/ or sponsor changes. Visa Run with Bali Despite the different discussion, ILA does not recommend proceeding with the different visa runs between Singapore and Bali  Both immigration understand the visa run system and may judge your journey suspicious  Immigration officer has the full right to refuse your entry to the country without any explanation.
- [How to register a PT PMA: Things to know about company registration in Indonesia](https://ilaglobalconsulting.com/register-company-indonesia/): Registering a PT PMA company in Indonesia can be complex or confusing without any help. Some business activities (KBLI) are open to 100% investment, and others require local partnership or are close to foreigners. Wherever you want to register a company in Jakarta, Bali, or Lombok, here is your ultimate guide for Indonesia. The establishment of a company in Indonesia (PT PMA) has to follow different steps. Pre Registration Before starting the registration process, the applicants need to define the following. Company Name The Indonesian ministry requires the name of the company to be written in three words. The name is applied to the Directorate General of Legal Administration Affairs. The words can be in English and the company name has to be unique with no other company using this name. A locally owned company cannot use English words to register its name. The company name is not a brand name and the trademark of the logo or company name has to be registered separately. Some words, such as OF, are not eligible. Combinations of symbols, letters and numbers are not eligible for registration. Terms that are against the Indonesian government, religion or morality are not allowed. Has to be in line with the business activity or not misleading Cannot represent a government institution To register a company in Indonesia, it is essential to adhere to these naming conventions to ensure compliance with legal requirements. Company shareholders and board of directors To register a company in Indonesia, the company needs at least 1 director and 1 commissioner. The director of the company is in charge of conducting policy and ensuring its management. The shareholders have to reappoint the director every 5 years. Commissioner The commissioner of the company supervises the director and reports to the shareholders. The commissioner can suspend the director at any time if the director is conducting activities that are not in accordance with the interests of the company. The main role of the commissioner is: Oversight and Supervision Advisory Role to the board of directors Annual report approval Compliance with the Indonesian law Director The role of the director is to conduct the company’s policy in accordance with the objectives defined in the status of the company. The director is responsible for preparing the financial statements and ensuring the company is complying with all the company law obligations. Shareholders The director is the one who can open the bank account. The shareholders of a PT PMA can be: Another legal entity (Indonesian or oversea) A foreigner A local person It is crucial to analyse and define an optimal structure for the company. Indeed the structure impacts the tax structure and dividend and the capital injection into the PT PMA. We recommend discussing this with a professional before defining the shareholder’s structure to ensure a smooth process when you register a company in Indonesia. Capital Requirement of a PT PMA The capital requirements of a PT PMA vary from one activity to another depending on the classification of the company. Some sectors, such as the cryptocurrency or the construction, may require higher capital. The minimum capital to declare is 10 Billion IDR. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Registration of a PT PMA in Indonesia After defining the name, board of directors and optimal structure of the company, the registration process takes 3 days to 2 weeks for activities requiring no additional approval. The registration can be done with a representative or in person. The deed of establishment of the PT PMA has to be notarised. Articles of Association (AKTA) The articles of association are governed by the corporate law and terms are standardised. The AKTA cannot remove rights to other shareholders to get financial dividends. The AKTA can, however, define a class of shares to limit some voting rights or influence in the company. Shareholders name and class of shares  Rights attached to each share and the nominal value of each share Amount of authorised capital, issued capital and paid-up capital and the amount Company’s name and location Business activity Board of Directors and commissioners Methods and locations to hold shareholder meetings Procedures for using and distributing the company’s profit and dividends Period of incorporation of the company (5 years) The Ministry of Law and Human Rights issues the ministry approval (Sk) after the registration of the deed of establishment. Also read: How to Structure a Holding Company in Bali and Indonesia Domiciliation It is mandatory to use the Online Single Submission (OSS) system to administrate the formalities of the company. While companies previously needed to issue a domicile letter, the new procedure involves registering the company through this web portal. The OSS system streamlines the registration process, enhancing corporate compliance in Indonesia. A company needs to have a domiciliation. The company needs an address and a commercial building permit. In other words, the company cannot register a villa or other building as an address with no legal documents. Tax identification – NPWP To register a company in Indonesia, each company must be registered online on the tax authority website (Kantor Pajak). The company needs to register the tax number (NPWP) before the company’s business identification number.  Create an account using the email address you used for OSS.  Fill in the registration form. Upload the documents through the registration application The tax office issues the taxpayer identification card and tax registration certificate one day after the issuance of the receipt. The tax office sends the card to the company address. Business registration number – NIB The nomor identification business (13 digits) is available through OSS after the registration process. The NIB defines
- [How To Rent Out Property As A Foreign Investor In Bali](https://ilaglobalconsulting.com/foreigners-rent-out-property-bali/): Investing in a property in Bali may seem confusing, as contradicting information is sometimes provided by different actors. If finding a property in Bali is easy, investing legally and making a rental business as a foreigner in Bali requires the investor to comply with the regulations. Despite what some actors or other investors can say, there is only one way to legally rent a property out on Airbnb or on the market. It is important for the investor to understand that different solutions provided by some actors are sometimes illegal or expose the investor to high taxation in case of audit or control. We will study the different options that are suggested and will review the consequences of each option. The number of offers on the market is now increasing and investors have a lot of options and areas where to invest. However, it is crucial for the investors to look at what could be the return of investment and how to select properly the best property to start a rental business in Bali. How to select a property to invest in Bali As mentioned above, in the last few years a lot of developers have taken the opportunity to build a number of properties in Bali. Farmers, Balinese owners and developers are now offering lands and villas in areas that nobody would have considered a few years ago. Find the right location and your target market Despite your budget and your investment plan, the location of a property remains the main criteria when investing in a property in Bali. The location has always to be correlated with your target market. Different projects may fit for one type of client and do not fit for another type of socioeconomic client. While Seminyak and Ubud are certainly places for short-term rental offering a high occupancy rate, other developments, such as in Tumbak Bayu or Kedungu, might find more difficulty in getting a higher occupancy rate. Indeed, investing in property and starting a property business requires a business-minded approach. Are there people willing to rent property in Bali 25 minutes from the beach, restaurants, or cultural activities? The answer is certainly YES. However, how frequently can you rent out this property if 30 new villas are being developed around you in the next 5 months? The market is indeed constantly changing and evolving. The tourism industry is changing and the behaviour, nationality and type of people coming to Bali is moving. Some actors and professional real estate agents can help to find the right place.  Define a proper Investment strategy Investing in a property is like investing in another asset. Each investor has to think about its exit strategy and the terms of the investment. Bali is offering a lot of leasehold property that might affect the exit strategy. While leasehold property requires cashing out quickly, freehold property gives investors more time to get their return on investment. The price of a property plays an important role in the decision to invest. Even if the location is great, an investor may get a quicker Return on Investment on a property slightly further from the beach with an occupancy rate one or two points lower. Here are the things to consider before investing in a property in Bali When do I plan to cash out? What is the occupancy rate in the area? Is this area close to activities? Am I looking to rent out the property for a short-term or long-term stay? Can I resell the asset after a few years? Understand the market trend Even if the location is great and the current numbers predict a good return on investment at the time of the investment, it is important to understand how the market is evolving to understand how it can affect the occupancy rate and the ROI. Indeed, Bali or other areas such as Lombok have today a lot of projects in construction on areas that are not yet developed. Some projects start to attract investors not because of the tourists willing to go to this place but sometimes because the developers are pushing to invest in an area where the developers could get cheaper land.  This presents a chicken-and-egg dilemma: Is there a lack of tourist interest because there’s no property, or is it due to the area being less appealing? Likely, it’s a combination of both. For investors looking to rent out property in Bali or achieve quick returns, this factor is crucial. Some projects make sense due to their proximity to beautiful beaches, while others are developed far from attractions, lacking appealing features like beaches or cultural activities. Understand the Competition Bali has seen such development that it is important to take into consideration how the competition is developing around your investment. Properties take time to develop, and with the current trend, you may be surrounded by other properties around you affecting your occupancy rate but, worse, bringing complaints to your Airbnb account. Indeed, it is not rare to see investors having to cut their price or take out their property from Airbnb due to the development around their villa and offering the villa on long-term rental due to the noise of construction. Make your own numbers Investing is your own responsibility, and no agent or developer will sign on to any numbers. Despite the occupancy rate they can provide or any information, it is important for the investor to make their own mathematical calculations. Each party has an interest to sell something and the only one with an independent view is the investor.  Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. How to purchase the property We have covered
- [Countries With Double Taxation Treaty With Indonesia](https://ilaglobalconsulting.com/double-taxation-treaty-indonesia/): Whether you are investing in Bali or living in Bali, it is important to define how your income will be taxed in Indonesia and in your home country. Indonesia has signed several tax treaties with several countries to avoid double taxation and facilitate tax treatment. The tax residency might sometimes be defined depending on the country, and where the income will be taxed can be interpreted differently depending on several factors. It is important to consult a tax consultant in your home country to confirm how the taxation will be applied. In a general way, tax offices around the world consider the taxpayer to be a tax resident if the person spends more than 180 days in the country or if the person has economic activity or interests in the country. This last definition can be subjected to interpretation and used by the tax office to redefine the base of taxation. Tax Residency in Indonesia As written in a previous article, the Indonesian authorities qualify a person as a taxpayer if the following criteria are matched: Resides in Indonesia; Presents in Indonesia for 183 days or more in any twelve-month period or Presents and intends to reside in Indonesia (this option is more rarely applied) The taxpayer needs to apply for a tax number called NPWP and get its EFIN number (Electronic Filing Identification Number). Indonesia applies the principle of worldwide income. In other words, Indonesia requires the taxpayer to declare, once a year (between January and March), the assets and liabilities and worldwide income. The US applies the same principle by deducting the amount paid overseas from the total amount. Example: If John has 500 USD income from Indonesia and this income is taxed at 10% in Indonesia but was supposed to be taxed at 30% in the US, the US administration will apply a tax of 20% (30-10). Also read: Taxation in Indonesia: How Businesses And Individuals Can Save And Comply Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Double Tax Avoidance Agreement in Indonesia Purpose Indonesia has signed more than 71 tax treaties with several countries around the world. The purpose of those agreements is to avoid double taxation on the income earned by the taxpayers working or trading with Indonesia. So, these treatments apply to dividends, royalties, interests, and withholding tax, making cross-border taxation more manageable. Having this DTAA (Double Tax Avoidance Agreement) facilitates business and relations between countries and encourages investments on both sides. How it applies The taxpayer needs to provide a Certificate of Domicile (KITAS – SKTT) or any other proof of residence to demonstrate the applicability of the DTAA. Obviously, the income has to be proven to respect the rules and anti-abuse regulations with full ownership of the assets. Countries with a DTAA Algeria (Aljazair) Denmark (Denmark) Jordan (Yordania) Norway (Norwegia) Seychelles (Seychelles) Taipei (Taiwan) Australia (Australia) Egypt (Mesir) North Korea (Korea Utara) Pakistan (Pakistan) Singapore (Singapura) Thailand (Thailand) Austria (Austria) Finland (Finlandia) South Korea (Korea Selatan) Papua New Guinea (Papua Nugini) Slovakia (Slovakia) Tunisia (Tunisia) Bangladesh (Bangladesh) France (Perancis) Kuwait (Kuwait) Philippines (Philipina) South Africa (Afrika Selatan) Turkey (Turki) Belgium (Belgia) Germany (Jerman) Luxembourg (Luxembourg) Poland (Polandia) Spain (Spanyol) United Arab Emirates (Uni Emirat Arab) Brunei Darussalam (Brunei Darussalam) Hong Kong (Hong Kong) Malaysia (Malaysia) Portuguese (Portugal) Sri Lanka (Sri Lanka) Ukraine (Ukraina) Bulgaria (Bulgaria) Hungary (Hungaria) Morocco (Maroko) Qatar (Qatar) Sudan (Sudan) United Kingdom (Inggris) Canada (Kanada) India (India) Mexico (Meksiko) Romania (Romania) Suriname (Suriname) United States of America (Amerika) China (China) Iran (Iran) Mongolia (Mongolia) Rusia (Rusia) Sweden (Swedia) Uzbekistan (Uzbekistan) Croatia (Kroasia) Italy (Italia) Netherlands (Belanda) Saudi Arabia (Saudi Arabia) Switzerland (Swiss) Venezuela (Venezuela) Czech Republic (Republik Ceko) Japan (Jepang) New Zealand (Selandia Baru) Serbia (Serbia) Syria (Suriah) Vietnam (Vietnam)   Each DTAA has a specific rate with each country depending on the source of income (dividend, interests, royalties). We recommend consulting us or your tax consultant before making any assumptions about the tax treaty or rate. The DTAA and how it applies can change the profitability of your business and investment decisions. Maximizing Benefits for Business and Tax Residents Strategic tax and incentive management is key for business owners and tax residents regarding financial maximization. Also, by taking depreciation, looking at tax credits, and repaying for growth, the tax burden can be lowered while cash inflow improves. It is equally important to know the international income tax provisions to mitigate double taxation of income earned overseas where one is an earner. To prevent unnecessary tax penalties and new avenues for savings, it is useful to follow updates to tax legislation and communicate with specialists. By being forward-looking, you can increase profits and facilitate the growth of the business in the long-term perspective. FAQ: Double Tax Avoidance Indonesia 1. What is a Double Tax Avoidance Agreement (DTAA)? A DTAA is a treaty signed between two countries to avoid double taxation on the same income. These agreements apply to various types of income, such as dividends, royalties, interests, and withholding tax, making cross-border taxation more manageable. 2. How do tax treaties benefit international taxpayers? Tax treaties prevent double taxation, ensuring that taxpayers do not pay tax on the same income in both Indonesia and their home country. This encourages investments and economic activities between treaty-signing countries. 3. What documents are needed to apply for DTAA benefits? To apply for DTAA benefits, you need to provide a Certificate of Domicile (KITAS – SKTT) or other proof of residence. Your income must comply with anti-abuse regulations and demonstrate full ownership of the assets.
- [Do You Need To Pay Taxes As A Digital Nomad In Bali](https://ilaglobalconsulting.com/digital-nomad-tax-bali/): Bali is a gem for Digital Nomad who wish to get a residency in a country outside their home country. Since the E33G Remote Worker Visa, Digital Nomad can now work legally and remotely from Bali and receive incomes in an Indonesian Bank account. There are several countries offering solutions to Digital Nomad and Indonesia is certainly a place offering one of the best arrangements in terms of Visa and Taxation. Overview : Digital nomads residing in Bali may be considered Indonesian tax residents if they: Stay in Indonesia over 183 days, Hold a KITAS/KITAP, or Intend to reside or have economic interests in Indonesia. Indonesia offers a remote worker visa (E33G), allowing a 1-year stay with multiple entries, and eligible digital nomads may apply for tax exemptions on foreign-sourced income for up to 4 years under certain conditions (PMK No. 18/PMK.03/2021), especially if they have specialized expertise. Alternatively, digital nomads can set up a PT PMA (foreign-owned company) to obtain an investor or working KITAS, allowing longer stays (up to 2 years) and corporate tax benefits like lower rates and tax-free reinvested dividends. Residency in Bali as a Digital Nomad A foreigner is considered a tax resident in Indonesia if the taxpayer:: Resides in Indonesia for more than 183 days Consider having a resident in Indonesia (having a KITAS or KITAP) Intends to reside in Indonesia or has an economical permanent interest Remote worker visa In the battle between countries to attract digital nomads, Bali province has definitely won its place as leader. The last remote worker visa now allows digital nomads to get a limited stay permit (KITAS) for 1 year, and remote workers want to use this opportunity to optimise their personal tax or income taxation.  In addition to allowing a one-year stay in Indonesia with this multiple-entry visa (E33G), remote workers and digital nomads receive some tax benefits detailed below. Setting up a PT PMA (LLC) Another option for digital nomads is to also set up their own company in Indonesia in order to invoice their clients and get tax residency. By setting up their own PT PMA (LLC), digital nomads or remote workers can apply for an investor KITAS or Working KITAS. This allows them to stay in Indonesia for up to 2 years. The company will tax their revenue and offer tax benefits during the first years of business. These benefits include lower corporate income tax and no tax on reinvested dividends. Also read: Understanding VAT and Income Tax For Crypto Assets in Indonesia Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Tax for Digital Nomad or Remote Workers in Bali Principle of worldwide income and territoriality Indonesia applies the principle of Worldwide income. This means that, in theory, all taxpayers have to declare their worldwide income, and the tax office uses this base to apply the taxation. However, the regulation provides some exemptions for some foreigners during the first 4 years of residency in Indonesia. Indeed, the regulator applies the principle of territoriality if the foreign national meets the provisions for having certain expertise (attachment II of PMK No. 18/ PMK.03/2021) and has been in Indonesia for less than 4 years (Nomor 18/PMKc03/2021). In other words, digital nomads can apply for a remote worker tax exemption on their income from outside Indonesia. If they are not taxed in another country, they might pay no tax at all. For example, revenue from an LLC in a country that does not tax corporate income or dividends. However, the digital nomad needs to apply for the tax exemption, and it is not automatically applied. Obligations for the Digital Nomad Despite the tax exemption, the digital nomad or remote worker with a KITAS (or considered a taxpayer, as mentioned) must fulfil their responsibilities and obligations. Apply for a tax number (NPWP) Report its personal income tax between January and March following the fiscal year. Declare its residency (apply for an SKTT) Report its personal assets and liabilities even if they are not taxed We advise the digital nomad and remote worker to take this matter into consideration and account to avoid any issues with renewing their KITAS or any tax penalties in the future. Contact ILA to know more on how to optimise your tax profile and understand how the taxation in Indonesia applies to digital nomad and remote workers in Bali (with a E33G or not).
- [Understanding Value Added Tax (VAT) and Income Tax For Crypto Assets in Indonesia ](https://ilaglobalconsulting.com/vat-and-income-tax-for-crypto-assets-indonesia/): Over time, tangible forms of exchange, such as paper or coins, have gradually emerged as alternatives. Cryptocurrency, including crypto assets in Indonesia, is another modern form of transaction that is increasingly popular. How does cryptocurrency work in Indonesia, and why is it taxable? Let’s explore these aspects step by step, focusing on the regulations and opportunities for crypto investors in the region. What is Crypto Currency? Generally speaking, cryptocurrencies are virtual currencies relating on the blockchain. Cryptography makes double-spending or counterfeiting of cryptocurrencies difficult. Thus, even if it is utilized virtually, there is no risk of counterfeiting that could harm the owner. This security is achievable as crypto assets in Indonesia are centrally created on blockchain technology. Consequently, their operation is inherently digital-based, encrypted, and distributed, ensuring reliability and transparency in transactions. Furthermore, in Indonesia, cryptocurrency is not yet a legal payment method. This is in line with the clauses regarding currency usage in Indonesia specified in Law No. 7 of 2011. The Currency Law clearly states that the rupiah, the currency that the Indonesian government created, is the only acceptable form of payment in Indonesia. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Buying and Selling Crypto Assets? Now, buying and selling crypto assets can be conducted through digital asset futures companies registered with BAPPEBTI (The Commodity Futures Trading Supervisory Agency). Some companies that facilitate crypto asset transactions are: Pintu Indodax Tokocrypto Bitocto Binance Why Tax Crypto Assets? For information, many people in many different countries now find income from crypto assets. The regulator is intending to include those assets under its scope. Bappebti claims that imposing this crypto asset less tax is crucial since it can encourage investors—especially foreign investors—to join the crypto market in Indonesia. The Commodity Futures Trading Supervisor Agency (Bappebti) observed that the Indonesian crypto investor count has risen. Domestic crypto investors in January 2024 were 18.83 million; in February, they grew to 19 million. As the number of crypto transactions increases, it becomes even more important to tax these assets to ensure fair regulation and revenue generation for the country. Also read: How to Open a Bank Account in Indonesia for Foreigners (2024) Tax Regulations for Crypto Assets Officially, trading crypto assets in Indonesia is subject to taxes starting on May 1, 2022. PMK 68/PMK.03/2022 claims Value Added Tax (VAT) on the Distribution of Crypto Assets and Income Tax (PPh) on Income from Crypto Asset Sales Transactions.  The tax is applicable since crypto assets are commodities liable to VAT and add to the economic capacity of the taxpayer. Ensuring VAT compliance is crucial for individuals and businesses engaged in crypto trading to avoid legal issues and penalties. Trading cryptocurrencies as commodities can only be done through businesses under the Ministry of Trade (Kemendag) using entities in relation with the Commodity Futures Trading Supervisor Agency (Bappebti). Also read: Get to Know Countries with Double Taxation Treaty with Indonesia Applicable Taxes Meanwhile, crypto asset profits are under Income Tax (PPh) article 22 and Value Added Tax (VAT). The goal is to reduce the burden on taxpayers (WP), individuals, and businesses. Tax Rate No Transaction Tax Collector Tax Rates 1 Crypto Asset Trading: Buying and selling crypto assets using fiat currency and Crypto asset exchange (Swap); Exchange between crypto and non-crypto goods and/or services. VAT  Platform exchangers (PFAK) as another party collecting VAT (Article 32A of the Tax Harmonization Law) Income Tax  Platform exchangers (PFAK), as another party collecting VAT, are not included in PPMSE, which only provides electronic wallet/e-wallet services. VAT: 0.11% VAT from the value of crypto assets registered with Bappebti 0.22% VAT from the value of crypto assets not registered with Bappebti Income Tax: 0.1% Final Income Tax (PPh 22) from the value of crypto assets registered with Bappebti 0.2% Final Income Tax (PPh 22) from the value of crypto assets not registered with Bappebti 2 Exchange/E-wallet Services  Electronic Wallet/Exchanger Services (trade, exchange, storage, and transfer services for crypto assets) VAT VAT-registered Exchanger/e-wallet collects VAT on Exchanger/E-wallet services. Income Tax Exchanger (PPMSE) reports income in the income tax return (SPT PPh). General Rate: VAT Scheme for Taxable Entrepreneur (PK) and Taxable Goods (PM): Tax Base (DPP) is the value of fiat currency and/or the value of crypto assets on the gas fee received, including the fee forwarded to the miner. 3 Mining Services  (verifying crypto asset transactions) VAT:  VAT-registered miners collect VAT on verification services. Income Tax: Electronic System Trade Organizer (PPMSE) if the income is from electronic systems facilitated by PPMSE. Miners if the income is from crypto asset systems. VAT: Specific VAT rate = 1% of the token value on the fee and block reward received Income Tax: Final Income Tax (Article 22) = 0.1% of income related to crypto assets Contact us Understanding and complying with these tax requirements allows you to efficiently manage your investments and operations within Indonesia’s legal framework. For detailed guidance, you better call ILA.
- [How To Register A Holding Company in Indonesia](https://ilaglobalconsulting.com/register-holding-company-in-indonesia/): A holding company in Indonesia is a perfect way to manage subsidiaries, get tax benefits and optimise the management of your company or personal investments. Particularities of the Holding Company in Indonesia Unlike other Limited Liability Companies (PT PMA), the holding company doesn’t operate or sell products or services in Indonesia or overseas. The holding company is a mother or parent company owning assets (shares) of other companies (subsidiaries) with the purpose of controlling and supervising the investment but not making decisions on the day-to-day. The operations and management of each entity are done at the subsidiary level. The top management of a group is usually employed at the holding level to coordinate the strategy and optimize the budget of the group (CFO, Marketing, HR, Head of Group operations, etc.). Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. What is the Purpose of a Holding Company? The purpose of a holding company in Indonesia can be defined as: Harmonise and optimize the group policy Facilitate the repartition of the investment at the group level Overseeing company operations Rationalization of the service and product of the group Limit the financial risk and personal liability Tax optimization Harmonise and optimize the group policy A holding company (PT PMA in Indonesia) is interesting for investors who have several investments or subsidiaries and wish to harmonize their group policy. Indeed, once a group starts to have a few companies or activities, it might be judicious to apply and manage the policy at the holding level. The purpose is to spread the vision of the company through the group and ensure the best practices are applied at the subsidiary level with rules and policies that are not in opposition between subsidiaries. It is not rare to see companies of the same group comparing to each other and bringing friction instead of moving forward together. This strategy involves, for example, applying the same Human Resources policy, the same financial and reporting policy, and the same risk management or Quality control. Facilitate the repartition of the investment at the group level The main purpose of a company is to provide a return on investment (ROI) for its investors. The advantage of a holding company is that it simplifies the investment process for investors, pools their investment into the different activities of the group, and provides one financial return. Having the investment done through the holding company simplifies the way to invest the capital injection and reinvest the profit of some subsidiaries into other activities without having to take the profit at the individual level but by making the capital circulate through the group. For example a company investing in real estate can take the profit of one subsidiary and reinvest its profit into another activity or project without having to withdraw the cash out of the group. Also read: How to Create a Foundation in Indonesia Overseeing company operations As described above, a holding company in Indonesia is a parent company. As a mother, the holding supervises the activities of its child by ensuring the operations are in accordance with the group policy and that the ROI is maximized for the investors.  The holding company has the trust of the investors and it is its primary responsibility to supervise the investment is safe and profitable. As the mother company and main shareholder, the holding company is liable for any loss of its subsidiaries. Rationalization of the service and product of the group Holding companies are used around the world to also rationalize the service and product of a group. Indeed, once a group starts to grow, it might be interesting to merge some activities under one “umbrella” to achieve some economic scale. For example a company investing in the property sector could merge all its development activities under one company and the management of the property under another company with both companies under a holding company. Some groups or conglomerates apply this technique to provide a better vision to the clients on what is the core business of each company. Also, a company that clearly rationalizes its services is able to provide clearer reporting and identify the profit and loss of each of its activities. It helps the top management to take appropriate decisions by having a clear vision on the profitability of each product and services which also can attract confidence to investors. Limit the financial risk and personal liability One of the main reasons for incorporating a holding in Indonesia is to limit the financial risk and personal liability of the investors. Indeed, each PT PMA in Indonesia has a minimum liability of 10 billion IDR. Having several activities under one PT PMA can increase the liability due to the addition of the KBLI. If, for some reason, one activity is suddenly liable and responsible due to malicious activity or a client suing the company for its activity, the liability of the shareholder is exposed to the capital declared. However, if the activities are clearly separated under 2 different companies, the holding can close the company without affecting its other activities. As an investor, it is important to limit its personal exposure and facilitate its reporting to the tax office. The benefit of a holding company is that it can remove its personal name from all subsidiaries by keeping its name at the holding level. Tax optimization Having a holding company helps to optimize the taxation between subsidiaries. Call ILA for a better understanding. Types of Holding Companies in Indonesia Indonesia has only one type of legal structure for establishing a holding company. The regulator in Indonesia classifies the holding as an
- [Relocation Bali Essentials: Finding the Best International Schools for Your Family](https://ilaglobalconsulting.com/relocating-to-bali-finding-the-best-international-schools/): Planning your relocating to Bali? Understand the costs, find the best international school, and settle into Balinese life with minimal hassle. This essential guide offers direct advice on creating a comfortable life in Bali’s warm and culturally vibrant setting. Bypass the fluff and dive into specifics with a focus on what truly matters for families and individuals moving to this tropical haven during their relocation to Bali. Key Takeaways Bali is a popular destination for expatriates considering relocating to Bali due to its rich culture, scenic beauty, friendly community, warm climate, and affordable cost of living. For families relocating to Bali, international schools play a crucial role. These schools, including IB World Schools, bilingual/multilingual schools, and eco-friendly institutions, provide high-quality, diverse educational options that cater to different needs and focus areas. Considerations for curriculum, extracurricular activities, and teacher qualifications are essential when choosing the right school for your child. Financial planning for relocation must account for various expenses such as visa fees, health insurance, and international school tuition, which varies across different schools and may include additional one-time enrolment fees and sibling discounts. Why Relocate to Bali? Bali boasts: A vibrant cultural heritage Breathtaking landscapes encompassing verdant jungles and emblematic terraced rice paddies An amiable local community known for its hospitality Consistently warm temperatures that provide a haven from the chill of colder climates Opportunities to embrace an al fresco, wellness-oriented way of life Irresistible opportunities for swimming and island exploration within this tropical haven Bali is appealing for those considering relocating to Bali because it offers expatriates cost-effective living options. Affordable extended-stay housing in villas combined with access to Western comforts and supermarkets enable one to live economically without sacrificing quality while immersing oneself in Indonesian culture and venturing out into other parts of Southeast Asia. Your visa process is made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. Preparing for Your Move Making a successful transition to Bali requires detailed preparation and thoughtful organization, especially for those relocating to Bali. Assessing visa choices, finding the right accommodation, and arranging for complete health insurance coverage are all essential steps. Expats have access to various living options that cater to different budgets – from affordable local ‘kosts’ accommodations to upscale villas with swimming pools. Employing the services of a property agent, coupled with advice from both expat and local community members, can provide crucial guidance on choosing suitable neighborhoods. It’s equally critical to allocate funds properly for initial expenditures when relocating to Bali. These outlays involve fees associated with obtaining visas and acquiring adequate health insurance policies. One would typically need around $550 USD annually for a KITAS (limited stay permit card) visa and an estimated $700 USD per individual each year for medical insurance coverage. Read also: Which Visa You Should Chose to Live or Invest in Bali Finding the Perfect International School Selecting the right international school is a critical decision in ensuring your family’s transition to Bali goes smoothly. The island boasts numerous top-tier international schools that provide diverse curricula and innovative teaching styles tailored to meet the demands of your child’s education on an international scale. We’ll delve into different choices available, assisting you in making an informed selection for your child’s educational journey. IB World Schools in Bali In Bali, schools designated as IB World Schools deliver an education of global caliber that meets international standards. This includes the provision of the International Baccalaureate Diploma Program alongside other programs within the international baccalaureate framework. The curriculum in these institutions is extensive and designed to equip students with readiness for worldwide engagement. When selecting one such school, it’s important not only to look at its academic offerings, but also to consider additional factors like available extracurricular opportunities, faculty credentials, and class size dimensions. Presently in Bali, four such international schools exist that offer this distinguished IB curriculum. Bilingual and Multilingual Schools In Bali, bilingual and multilingual schools create a dynamic learning environment that fosters cognitive growth and cultural understanding by teaching students in various languages. At the Gandhi Memorial Intercontinental School (GMIS), students benefit from an international curriculum, which is further enriched by language options such as Mandarin, Bahasa Indonesia, Hindi, and French, ensuring diverse learning opportunities. Several other educational institutions on the island also provide opportunities for language immersion. Bali Island School (BIS) is the oldest international school in Bali, offering the IB program across all grades and focusing on holistic education. Canggu Community School (CCS) combines the British curriculum with a vibrant community spirit, offering a range of programs from the Early Years to A-Levels. Dyatmika School provides a unique bilingual curriculum, preparing students for both the Cambridge IGCSE exams and the Indonesian National exam. Green School Bali stands out for its innovative approach to education, with its eco-friendly bamboo campus and a curriculum centred around sustainability and environmental stewardship. For French nationals or those interested in the French curriculum, Lycée Français de Jakarta (LFJ) offers a comprehensive French education, and while there isn’t a Lycée Français in Bali, many schools offer French as part of their language programs. Montessori School Bali follows the Montessori method, focusing on self-directed learning within a thoughtfully prepared environment. Eco-Friendly and Sustainable Schools Schools like Green School Bali are leading the way in environmental education. Their unique curriculum emphasizes sustainability and experiential learning within a natural environment,
- [Necessary Documents To Live In Bali](https://ilaglobalconsulting.com/move-to-bali-document-checklist/): Living in Bali, Indonesia offers a unique and enriching experience, but it’s essential to have the right documents to ensure a smooth and hassle-free stay. Whether you are an expatriate or a long-term visitor, having the necessary paperwork will ease your stay and help you to be in line with the regulations and immigration rules. If you plan to move to Bali and are looking to buy a motorbike or a car or obtain proper health coverage, here is a comprehensive document checklist of essential documents you should have while living in Bali. ITAS If you plan to move to Bali, the first and most important immigration document to be considered a resident in Indonesia is the stay permit called KITAS (Kartu Izin Tinggal Terbatas). The KITAS is delivered by the immigration department to foreigners meeting some requirements such as being an investor, a spouse of Indonesian, in retirement, a worker, a student, a remote worker or a KITAS holder having a dependent or a spouse. The validity of the ITAS varies from 6 months to 5 years, depending on the type of visa. The foreigner can apply for permanent residence (ITAP – Izin Tinggal Tepat) after 5 years in a row with the same sponsor on its KITAS. As a reminder, foreigners who are directors of a company or working in Indonesia are obligated to have a stay permit (KITAS) in line with the immigration rules. Having a KITAS is not a sufficient condition for working in Indonesia. Being a director in a company might involve applying for a working permit (IMTA). Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  SKTT and NIK Number The SKTT (Surat Keterangan Tempat Tinggal) is a document attesting to your residency in Indonesia. It is a civil registration for each citizen or foreigner living in Indonesia. A foreigner with a KITAS or KITAP has to declare any change of residence to the immigration office and provide the SKTT with the correct address. This document is necessary to purchase a motorbike or a car or get an NIK Number. The procedure to get an SKTT has to follow the Get a police report and declare your address Residents in Bali need to contact the local Banjar or go to the Desa, where their residence is located. Resident outside Bali, such as Jakarta, can declare their residency online As a reminder, KITAS holders need to declare their new address to the immigration office and change the immigration office if the address is different from another immigration office. The NIK (Nomor Induk Kependudukan) is a resident identification number valid for the lifetime of the individual. This number is  a unique number for each resident or citizen. This number is important for several admission purposes, such as getting private insurance. Also read: Remote Worker Visa (E33G): Visa for Digital Nomads in Bali NPWP and EFIN NPWP (Nomor Pokok Wajib Pajak) It is not the most pleasant document, but it is definitely one of the most important for any worker, resident, or investor with a KITAS in Indonesia. If you plan to move to Bali, the NPWP is an essential tax number for the taxpayer. The tax card is important for each KITAS holder who needs to declare their tax in Indonesia or wishes to become a tax resident. The NPWP is necessary for tax administration purposes and is essential for the following: Tax Reporting: Individuals and entities use the NPWP to report their income and pay taxes. It is a requirement for filing annual tax returns. Banking: An NPWP is necessary to open bank accounts or to apply for loans, as it provides proof of tax registration. Business Transactions: Companies and businesses are required to have an NPWP to issue invoices, receive payments, and conduct transactions. Government Services: Various government services and permits may require an NPWP to process applications. The tax card is mandatory for a foreign director in a company. The personal NPWP is different from the company NPWP. The tax card is available online with the tax office department. As director of the company, the director is responsible for declaring its personal tax to be able to declare the company tax. A digital nomad or remote worker in Bali needs to also obtain its tax number if while residing more than 183 days in Indonesia willing to become a tax resident in Indonesia. EFIN (Electronic Filing Identification Number) The EFIN is necessary to log in to the tax office website. The taxpayer has to go to the tax office of its residence to get the  identification number. This number is necessary to fulfil the annual tax report for companies and individuals. Also read: Indonesia implements the “Bridge Visa” SIM (Driving licence)   When visiting Bali as a tourist, an international driving license is mandatory for foreigners willing to drive a motorbike or a car. However, if you decide to move to Bali and obtain a KITAS, you must apply for a local driving license (SIM C to drive a motorbike). The driving license can be obtained at the police station. Our team can assist in understanding the process. BPJS. Companies also have to subscribe to the BPJS Ketenagakerjaan for their employee in order to ensure any work accident to their employee, which is a legal document that ensures coverage for work-related accidents. This monthly subscription is compulsory. Companies also need to pay the BPJS Kesehatan to cover any health issues their employees may have.  After applying to the BPJS, the worker will receive a social security number and a card to present while
- [Legal Considerations For Leasehold Property In Bali](https://ilaglobalconsulting.com/leasing-property-bali/): This article identifies the key things to consider when leasing property in Bali and the rest of Indonesia, such as Lombok. There are some steps and factors to pay attention to when dealing with developers, real estate agents, and sellers of a property. As a reminder, a leasehold is a private contract between two parties. This means that the terms and conditions are defined by the content of the agreement, and any dispute will be related to the clauses in the agreement. Due Diligence on the party During my first trip to Bali, I remember arriving to a world at the opposite of the cartesian rules and clear functions of each party involved in a transaction or a contract. As I used to say, Indonesia has clear rules however their application and how some actors play with the rules might be disorienting buyers in their purchase journey. Due diligence on the Broker or Real Estate Agent When purchasing a property, the first party you will probably meet is the broker or real estate agent. Indonesian law clearly states who can be an agent or a property broker. The broker needs to have a special licence and be a member of the Broker Association (AREBI). However, it is unfortunately common to see brokers acting on a system commission without any licence. The broker or real estate agent is taking a commission from the seller. By definition, this broker or real estate agent is not representing your interest but the interest of their client, which is the seller. Professional real estate agents take care of both sides, and there is a lot to recommend when working with proper license and professionalism. The agent is supposed to also advise the client about the regulation and how the process works. However, having an unlicensed agent might cause you to face some issues during the process of leasing property in Bali, with the broker exercising pressure on the buyer. Check on the Seller When leasing property in Bali, whether dealing with an agent or not, it is important to understand who the seller of the leasehold is. It is not rare to see some leaseholders in Bali selling a lease while they are not the owner of the land or the building if they decide to sublease or transfer the lease ownership. The owner of the land or the leasehold will be the person with whom you need to deal on the day-to-day or if something happens. By law, having a leasehold doesn’t mean the lessee is the owner of the land. It is recommended that you initiate good relations with your landowner or lessor in order to prepare the terms and conditions of your contract. It is not rare to see multiple owners on a property in Indonesia. I remember a case with 11 owners all around Indonesia, and the difficulty there was in the end in getting everybody to sign the lease. Those 11 people or their descendants will be the owners and people you will have to deal with. Due diligence on the Developer Bali and Lombok have magically seen developers and contractor companies emerging in the last few years, selling off plan properties. Some developers might have rights on the lease and subletting or transferring you a leasehold property they have purchased in order to build and resell the rights to the lessee. Developer and contractor professions are highly regulated in Indonesia. We recommend analyzing the licence of the developer before entering into an agreement with the party. We have seen several developers on the market who have no experience overseas or even operate here with no license. A proper contractor is required to have at least an Indonesian partner in order to operate in the construction field. Indeed, depending on your contract, a contractor or developer with no licence might disappear and let you have a property once the deal is done without any insurance on who to complain to if there is an issue. The Indonesian procedure might take months and years. Even the recent episode with a big developer in Uluwatu shows that the incident might let investors off-plan property with delays and delays on their project. Other experiences in Sumba have also been reported. Therefore, it is essential to thoroughly vet developers when leasing property in Bali to avoid potential pitfalls. Also read: Property Contracts And Due Diligence In Bali And Indonesia Use an independent Notary Once you have found your property, one of the third parties you or the lessee will engage in the transaction is the Notary. This profession is also highly regulated in Indonesia. However, notaries work closely with developers or sellers. I rarely see a transaction ending with a NO GO from a notary who gets commission on the transaction. We usually recommend that the buyer choose a notary independent of the seller (contact us for recommendations). Fees from notaries usually range from 0.5% to 1% of the transaction. Once all parties in the process have been identified and defined, the next step is to understand the key points to check on the property itself when leasing property in Bali. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Due Diligence on the property Zoning When leasing property in Bali, it’s crucial to consider the zoning regulations, which dictate the permissible activities for each type of zone: Green Zones: Reserved for agriculture. Yellow Zones: Primarily residential with some allowance for business activities. Pink Zones: Designated for tourism and larger-scale activities. However, the color designation alone provides an indication, not a definitive confirmation. Each plot must be thoroughly assessed to verify what activities are permissible based on the
- [Personal Income Tax In Indonesia](https://ilaglobalconsulting.com/personal-income-tax-indonesia/): Individuals are considered tax residents in Indonesia if they are engaging in business, freelance endeavors, or earning income surpassing the Non Taxable Income threshold. They have to register their NPWP (Tax card) in order to report their tax annually between 1st January and 30 March. Married persons meeting their tax obligations independently from their spouses have to obtain an NPWP at the tax office. Generally, tax residents are liable for taxes on their global income, but with the implementation of double taxation agreements (DTAs), these obligations can be waved for those who have income from working on their own behalf, such as working remotely. The provision under the Income Tax Law Nomor 18/PMKc03/2021, specifying that foreign individuals transitioning to tax residency in Indonesia may be taxed solely on income sourced within Indonesia (even if received offshore) for 4 years. In other words foreigners can apply for the territoriality for 4 years before being tax on their worldwide income. It’s important to note that this territorial taxation system may not apply if a foreign individual receives income from overseas and utilises the relevant tax treaty between Indonesia and the source country to avoid taxation on both sides. Who pay personal income tax in Indonesia? An individual is an Indonesian tax resident if the person: Resides in Indonesia Resides in Indonesia for 183 days or more in any twelve-month period Presents and intends to reside in Indonesia (this option is more rarely applied) For non-resident individuals, a general withholding tax (WHT) of 20% is imposed on their Indonesian-sourced income. However, concessions are available in the presence of an active DTA. TAXABLE INCOME IN INDONESIA Taxable income for 2023 (IDR) Tax rate (%) Up to IDR 60 million 5 Above IDR 60 million to IDR 250 million 15 Above IDR 250 million to IDR 500 million 25 Above IDR 500 million to IDR 5 billion 30 Above IDR 5 billion 35 DEAD LINE : 31 March following the previous year TAXATION ON SEVERANCE PAY Taxable income (IDR) Tax rate (%) Up to IDR 50 million 0 Above IDR 50 million to IDR 100 million 5 Above IDR 100 million to IDR 500 million 15 Above IDR 500 million 25 Taxpayers have the convenience of extending the deadline for filing annual income tax returns by up to two months. They can simply notifying the Tax Authority. It’s a hassle-free process that provides you with additional time to ensure accurate and timely submissions. Keep in mind that late tax payments incur a 2% monthly surcharge. Should there be any tax underpayment resulting from voluntary amendments to tax returns, a surcharge of 2% per month or 50% to 150%, depending on the case, will apply. Timeliness is key, as late reporting comes with a penalty of IDR 100,000 for annual individual income tax returns. Taxpayers who are working in Indonesia have to contribute to the social security system. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Capital Gains Ordinarily, capital gains are included in an individual’s overall income and taxed at standard rates. Notably, exceptions apply to the sale of land, buildings, and exchange-traded shares listed on the Indonesian stock exchange. These transactions are subject to final tax. Dividend Dividends received from an Indonesian limited liability company attract a final income tax of 10%. However, this tax is waived if the recipient is a domestic individual taxpayer and the dividends are reinvested in Indonesia within a specified timeframe (3 years). Interest Interest income from time deposits and savings with Indonesian banks or their overseas branches, as well as interest from time deposits placed through Indonesian branches of foreign banks (in any currency), is currently subject to a final income tax rate of 20%. Additionally, interest on bonds incurs a final income tax at 10%, collected through withholding by the payer. Stay informed about these specific tax treatments for optimal financial planning. Read also: Property Taxation in Indonesia : Comprehensive Guide (2024) Exemptions from Personal Income Tax for Certain Foreigners in Indonesia The tax office exempts of personal income tax declaration some person living in Indonesia. Some KITAS holder are not entitle to report their tax in Indonesia if they hold a second home KITAS a retirement KITAS a spouse KITAS and getting revenue with their partner Read Also: Tax Planning: How to Optimise Taxation in Indonesia Reporting Individual Tax Returns in Indonesia Taxpayers need to fill out their personal income by the end of March following the calendar fiscal year. In order to declare their tax, the KITAS holder needs to obtain two essentials documents. NPWP EFIN (Electronic Filling Identification Number) Those documents can be obtain at the tax office of the tax payer. The locations depends on the residence written on the KITAS and provided when the KITAS was issued. It is mandatory to update the address in case of changes with the residency to update the tax office. If for some reasons the taxpayer didn’t declare its tax, the taxpayer will receive a fine for each year that was not fulfil. Contact us about these tax implications to make well-informed financial decisions for yourself and your family.
- [Freehold Vs. Leasehold Bali: Which Is The Better Choice?](https://ilaglobalconsulting.com/freehold-vs-leasehold-bali-property/): Investors and property buyers have to choose between freehold vs leasehold Bali for their investment in Bali, Lombok, or the rest of Indonesia. What is the best option for a foreigner? Which option is better, freehold or leasehold? Plunge in Bali’s history Historically, the Bali real estate market has been selling property under a leasehold agreement. First, foreigners who invest in Indonesia and Bali were looking at options for investing in a property. The law did not allow foreigners to own property. At the time, two options were possible. Invest under a nominee (wife, husband, partners) but without any insurance to get rights on the property as a nominee agreement is illegal even between husband and wife. Invest by renting the property for several years under a leasehold agreement. Indonesians who used to sell their freehold certificate with a notary pursued the process by using notaries with foreigners purchasing leaseholds. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. What is a Leasehold? Purchasing a leasehold property is a long-term rent of a property with some terms and conditions. A leasehold is a private agreement between several parties that defines some rights and obligations. The lessor and the lessee can write an agreement about a land or a building. Both parties can be individuals or corporations. A leasehold agreement delegates some rights on a property to the lessee (the buyer). The rights and obligations are in the agreement for both parties. The agreement frames the relationship between the lessor (seller) and the lessee (buyer). A lease agreement can be notarized or non-notarized. The notarization can be helpful in case of a dispute. A lease agreement can be transferred or subleted to a third party if the agreement authorizes the lessee. In the case of the transfer lease agreement, the lessor has to be informed by the current lessee who is substituting its rights and obligations. Some agreements for freehold property in Bali differentiate between the building and the furniture to minimize tax. Lessees and lessors in Bali often sign both an official agreement and a non-official one, usually stating a minimized amount in the official document to reduce tax while keeping the unofficial document aside until full payment is made. First, this practice is totally illegal. Second, the lessee will not be able to justify the purpose of the funds transferred to the tax office in its country. Third, if the lessee buys through a company, the lessee will not be able to claim this amount as part of the investment. Especially in areas like Bali, where long-term lease agreements are common, understanding the legalities and tax implications is crucial for both parties involved. Also read: How To Buy A Property In Bali: What Is the Most Tax Efficient? What is a freehold (SHM, HGB, Hak Pakai)   A freehold property (Setifikat Hak Milik) in Indonesia is only for an Indonesian Citizen. The SHM will be transferred to the next generation. However, in order to facilitate investment in Indonesia, the regulator has introduced other forms of ownership. Hak guna bangunan (Right to Build) The HGB (Hak Guna Bangunan), or Right to Build, authorizes Indonesian companies to own land and build on this land and property. This form of ownership is valid for a first period of 30 years, extendable for 20 and 30 years. The extension is done at the Badan Pertanahan Nasional (BPN). The company owning the land will see its name written on the land certificate, while the SHM owner will see its property rights revoked. It is possible to convert the HGB to an SHM if the owner decides to resell the land title to another Indonesian or to another company. Hak Pakai (SHP) The SHP (Sertifikat Hak Pakai) or Right to Use is for an individual or a company willing to own a property already built. The initial term of a SHP is 30 years. This certificate is usually for apartments and to encourage foreign investment. It allows foreigners to own the apartment or the house they want to live in. The same principle as the HGB, the Hak Pakai is extendable for a certain period of time (20+30). The conditions for a property under Hak Paki are depending on the province of the property location. For example, Jakarta and Bali apply different criteria based on the size and value of the property. The criteria vary if the property is an apartment or a villa. Also read: Bali Property Market Trends 2023 to 2024 Freehold or Leasehold Bali   The answer to the question of Freehold vs Leasehold in Bali property largely depends on the profile of the investor. From a legal perspective, however, the HGB and SHP grant more rights to the buyer, making the purchase more secure and providing more peace of mind regarding what the buyer can do with the property. From a business or economic point of view, this is depending on several factors: Purchasing power of the buyer and its financial situation Market Value of the Freehold and Leasehold The price of the leasehold has reached such a peak in the last few years in Bali that the gap difference with a freehold is reducing. For an investor looking to invest in a property with more than 25 years’ duration, the price of the freehold should be mathematically advantageous. Another criteria is the investment plan of the investor. If the investor decides to cash out and make its return on investment (ROI) without taking advantage of the capital gain, then the leasehold can be advantageous. A leasehold is surely a good first investment for investors with a lower budget. However, each investor in their home country
- [Why And How To Structure A Holding Company In Bali & Indonesia](https://ilaglobalconsulting.com/structure-holding-company-bali-indonesia/): Indonesia allows investment through a holding company. This holding term is commonly used by investors to define a structure owning some assets. However, what is a holding? What are the advantages and disadvantages of a holding company? For investors in Bali and Indonesia, having a holding company can simplify some financial transactions between subsidiaries and help to optimise the taxation of the activity. The holding system is commonly used in Dubai, Singapore or other countries but is it possible to set up a holding company in Bali and why? What is a holding company? The holding system is frequently used by family offices or big companies. Everybody has heard about Google, but how many have heard about Alphabet? Google decided a few years back to integrate all its activities under one holding company and to distinctly different activities like Walt Disney’s under its holding company, Walt Disney Company. A holding company is a company that primarily owns and controls other companies, known as subsidiaries. Other names are attributed to the holding company, such as Parent company. The holding company itself typically doesn’t manufacture products, sell services, or conduct its own business operations. The operations are proceeded under the subsidiary company. What is the role of the holding company? The role of a parent company can be divided into 3 main roles. The first role of a holding is to clean the structure of the organisation. It applies a hierarchical and optimised structure. The holding is on the top of the group and acts as the main parent supervising its child. Applying a structured organisation gives investors more clarification on what the group is doing and which activities generate revenues. For entrepreneurs looking for investors, applying a holding helps to separate activities and provide a clear vision to the investors by maintaining separate PnL and Balance sheets. The second role of a holding company is to own and maintain interests in the subsidiaries. Holding companies can own more or less than 50% of the assets, but their role is to supervise the activity and the interests of the shareholders of the parent company. The holding usually provides oversight, sets strategic direction, and manages the overall operations of the group. Also read: Comprehensive Guide to Opening a Company in Indonesia [2024] What are the advantages of setting up a holding company? Reduce the risk The first one is as described above to separate the activities. Besides giving a clearer vision, the holding company allows for a reduction in risk. Nowadays, most companies are limited liability companies. Under Indonesian company law, most companies are limited liability companies, meaning shareholders’ liability is limited to their investment in the company. In case of a lawsuit against a subsidiary, the other subsidiary can still run while the one having a lawsuit can close. The holding company protects the other child while one has another issue.  Tax efficiency Being transparent is probably the main reason for the tax efficiency resulting from the establishment of a holding company. A holding company can offer some tax advantages and consolidations. It helps circulate funds between companies and subsidiaries through the holding company.  Cost efficiency Having a holding helps to apply transfer pricing between companies, especially between entities in different countries. Companies working on several projects or with several entities might be required to merge some functions at the top level of the company, such as HR, Finance or Marketing. Those transverse functions are usually located in the holding company. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Holding Company in Bali and Indonesia The Indonesian government recognized holding companies as below in OSS: “Companies that control the assets of a group of subsidiary companies and whose main activity is ownership of the group. “Holding Companies” are not involved in the business activities of their subsidiary companies. Its activities include services provided by advisors and negotiators in designing corporate mergers and acquisitions.” The vision of the Indonesian government regarding a holding company is clearly to classify the holding companies as entities holding assets but not involved in the activities of the subsidiaries. In other words, the holding company cannot own any land itself, and a subsidiary will need to purchase the land.  Also read: 12 things to know to create a company in Indonesia Why set up a holding company in Bali and Indonesia? A holding company starts to be beneficial for investors when they are looking to have more than one project in Indonesia or want to reduce their liabilities in Indonesia. For instance, an investor buying several lands in Indonesia might see some benefit to limiting their responsibility on some projects and having his own name and liability reduced in case of issues. For example having two projects development and one management company under a holding. The other and main reason is certainly the tax advantages. Having a holding company allows a few advantages: Splitting the revenue between subsidiary companies and avoiding some threshold Injecting capital from the holding company in Bali through over subsidiaries without tax Limit the taxation at the company level and get tax facilities by reinvesting dividends By leveraging these holding company benefits, investors can optimize their operations and financial outcomes in Indonesia. How to set up a holding company in Bali? Process A holding company can be set up as a PT PMA in Bali and the rest of Indonesia. However, a holding company needs a specific address, and not all addresses can host a holding company. For example, a foreigner purchasing a villa will not be able to host the holding company in some areas and will need to use another
- [Property Contracts And Due Diligence In Bali And Indonesia](https://ilaglobalconsulting.com/property-contract-due-diligence-indonesia/): Purchasing a property in Bali or Indonesia is a magical experience that can turn into a scam or a nightmare if nothing is done by following some steps of due diligence. Social media are full of happy stories showing happy endings with high return rates on investment. However, some stories can end with some drama. Whoever you are, a buyer looking for a retirement place, a buyer of a villa or a developer, it is crucial to follow some steps and make sure your contracts cover all points and perform due diligence on the property you want to buy. Property Contracts in Bali and the Rest of Indonesia Memorandum of Understanding or Letter of Intent Once the property you found is the one you want to lease or purchase, the first step is to send a formal offer before signing a lease or purchase agreement. The formal offer is a Memorandum of Understanding or Letter of Intent. This document is crucial as it will define the next steps of your purchase. This document has to cover a few points. Name of the party Price and terms of the lease Who will be in charge of the due diligence process Where will the money be transferred and how will the money be released to the seller You are going to purchase the property under a company that you are going to set up, and the final agreement will be made once it is established if you plan to have a business. Who will be the notary appointed in case of purchase (notary is not mandatory for lease agreement) To protect your interests, ensure you formally sign your contract. We recommend avoiding direct payment of the deposit to the seller to prevent future disputes. The process of taking back your deposit can be long and frustrating. Lease Agreement and Purchase Agreement Once the legal team completes the due diligence in Indonesia, the second step is to draft the lease agreement or the sales and purchase agreement.  Those agreements are the proof of the transaction. The regulation doesn’t really define the terms and conditions of a lease agreement as it is a private contract between two parties. However, some minimum recommendations have to be followed. Bali has historically involved notarized agreements. Our experience shows that going to court doesn’t change much in dispute resolution, especially with biased appointed notary. Some notaries historically minimized agreements, causing tax issues. We advise against this practice due to difficulty in recovering full payments during disputes. At the difference with the Sales and Purchase (Akta Jual Beli), the lease agreement (Hak Sewa) has to be strong. It defines the obligations of each party and how the lessee can use the property and how the lessee can extend the lease.  On a separate note, the seller cannot be forced to renew the lease. The last few years a few agreements mentioned conditions to renew the lease, letting some foreigners think they will be able to renew the lease with a prime right. Having a priority doesn’t mean the seller has to accept the renewal. The first extension will happen in a few years and we will see how the market will react. On the other hand, the sales and purchase agreement (AJB) is a standard contract. The buyer becomes the owner and the owner loses its right on the contract. It is important to indeed check the details of the party and the property. Read also: Complete Guide To Buying Property in Bali as a Foreigner [2024] Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. What to Check Before Buying a Property in Indonesia Property Due Diligence in Indonesia Ownership One of the most important steps is property due diligence when you buy a property in Bali, Lombok and the rest of Indonesia.  Checking the ownership and the right of the person to lease the land to the buyer is important, especially when conducting property due diligence in Indonesia. In Bali, it is not rare to see lands belonging to several owners or transferred to a person for a certain period of time without authorization to lease or sell the property. It is indeed rare to see an issue for a sales and purchase agreement but it happened a few times to see the owner or lessor not authorised to sublease the property. The due diligence also has to identify if, for example, the property has some mortgage. The mortgage can have consequences: a bank taking the property and pushing the lessee out of the land by buying back the lease. This could not be an issue if the value of the lease has been clearly declared and the value of the villa is part of the lease. Zoning The other aspect after the ownership is to check the ITR (zoning of the land). The zoning classifies what it is possible to do with the land. For example some residential zones authorise or do not authorise daily rental and to apply for a VIlla License or Hotel License. Areas like Uluwatu are dry areas with a lower access to Water like in South Lombok. Lombok had a lot of land to sell for the last few years without having access to a general system of electricity or water. We recommend including those points in your due diligence and in your contract to cover those points. Some lands, like in Tabanan, have been declassified as a green zone to allow more construction. However, those soils have been used for agriculture for centuries. Those kinds of soil may not be suitable for all types of construction and having a test can help to check
- [How To Buy And Rent A Property In Bali: What Is the Most Tax Efficient?](https://ilaglobalconsulting.com/buy-rent-a-property-bali/): During the process of purchasing a property in Bali, one recurring question we got was how to buy a property in Bali and the rest of Indonesia. The main purpose is obviously to understand the legality of the law and to understand the best way to be tax efficient and protect the investment. While some agents push the process to go fast, considering the best way to optimise the investment is crucial to facilitate the transmission of the investment. As a reminder, nominees are totally illegal in Indonesia and are not secure for investment. We will not study below this option and focus on buying a property as an individual or under a company. Buying a property under a personal name or company Buying a property as an individual Indonesian law authorised individuals to purchase leaseholds. A leasehold contract is a long-term agreement transferring some rights to a party during a certain period. For example, you can rent for a period of 10, 20 or 30+ years a villa in Bali. You will get the rights to a property based on the terms and conditions. The other option is to buy an apartment or a villa under Hak Pakai. The Hak Pakai “Right to Use” gives the right to the buyer on the property for a duration of up to 80 years. The advantage compared to the leasehold is that the buyer becomes the owner of the property and can eventually resell the property at the price of a freehold. Each province, such as Bali, Jakarta, Lombok, etc., defines the minimum requirements for getting a freehold under Hak Pakai. If you’re looking to buy a property in Bali, considering options like Hak Pakai could be beneficial. Buyers can also obtain a stay permit (KITAS), such as a Second Home Visa, by buying a property in Indonesia. The minimum requirements have changed in the last few months, so we invite you to contact us to learn more about the options for property acquisition and property ownership. Buying a property under a company In recent years, the Indonesian government has authorised foreigners to establish corporations to purchase properties under a leasehold or a freehold (Hak Pakai, HGB, for example). In other words, buyers can buy a property or lease a property in Bali under a PT PMA. Differently from the individual, a company can purchase freehold lands while individuals are limited to leasehold. Freehold offers obvious advantages, such as the possibility of transferring ownership to the next generation through some mechanism. Real estate investment is a key consideration in such purchases. One of the important factor is the ability to apply for a “Vila license” under the PMA to be able to manage and rent the property legally. LEASEHOLD vs FREEHOLD LEASEHOLD FREEHOLD Individual Hak Sewa Hak Pakai (only villas and apartments with a minimum value) PT PMA Hak Sewa Hak Pakai HGB Duration No limit 30+20+30 Extension Ownership No Yes Business as individual No No Business as company Terms and conditions in the contract Yes Selling option According to contract Yes Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. How to optimise your tax to buy a property This section will cover the legal ways to optimise taxes in Bali and Indonesia when you buy a property, including tax-saving strategies. There are some common practices for establishing two lease agreements established by the notary that will not be covered here as it has some consequences:  It is illegal You cannot claim your money back in case of litigation and have no proof for the tax office in your home country if they ask you why you had to pay overseas. You will not be able to claim the full amount of your investment in your company. Tax on individual property rental Renting out a property in Indonesia is illegal for Foreigners under their personal name as the operation to rent a property out requires a licence even for Indonesian citizens. One possibility for a foreigner to rent a property out as an individual is to delegate the management of the property to a management company. This management company will need to proceed with the licence under the villa. In this option, we assume the property has the correct legal documents, such as a building permit (PBG/SLF), in order to obtain the licence (Vila or Pondok Wisata, for example). Once the property gets the licence, the property management will distribute the revenue after paying the local tax and paying its management fee.  Tax on Non-resident The taxation will then be 20% of the remaining income. This tax is a withholding tax on money sent to non-residents. Some tax treaties offer lower taxation rates, but they need to be studied case by case. Tax on Resident (KITAS Holder) KITAS holders are responsible each year for declaring their personal income tax. An income coming from a company without any capitalistic relation will highly affect the personal income tax of the resident. Indeed, the progressive rate is important, with a last threshold of 35%. Read also: Bali Development Blueprint: Indonesia Real Estate Developer Guide Tax on companies on property rental A company offers more tax advantages than at the individual level, and it also offers more flexibility to rent out a property legally. In short, a company can be classified as a property management company or real estate company (contact us how to rent out a property legally or consult our other article here) Once the property management company has paid the local tax, then the company will be taxed at 0.5% on its income during the first 3 years if it doesn’t exceed a certain level of
- [Dubai to Bali : Tax Treaty Indonesia and UAE](https://ilaglobalconsulting.com/tax-treaty-dubai-bali/): For those investing in Bali, one of the recurring questions is how to optimize your investment and personal tax (property, business). The tax treaty Dubai Bali highlights some similarities between Dubai and Bali, making it not rare to see investors holding investments in both Bali and Dubai simultaneously. Both destinations have tax facilities and allow business owners and investors to transit and transfer money to Bali and Dubai. Tax treaty between Bali and Dubai The United Arab Emirates (UAE) and Indonesia had a tax treaty in effect on January 1st, 2022. Both countries completed the ratification process in 2021 and it has been an important change in the way to approach investment and trading between Dubai and Bali. Tax on Dividend A company incorporated or resident KITAS holder in Indonesia and Bali has to pay 10% tax on dividends as a resident and 20% as non resident. A company incorporated in Dubai or individuals don’t have to pay tax on dividends. As Singapore, Dubai is a paradise for non resident investors. In addition, the tax treaty between Dubai and Bali offers an interesting tax rate 10%, which is the same tax rate as a resident in Indonesia. Dubai business owners holding companies in Bali will pay only 10% tax on their dividend while Indonesian tax payers will be taxed at 10% while they will declare their annual income tax. Tax on Interests In some ways contracting a loan between subsidiary companies and the mother company can be more interesting than injecting money directly and paying a dividend. Some companies looking for investors use the loan technique to get investment. Based on the treaty between UAE and Indonesia, a company has to pay 7% tax on the interest rate. This withholding tax is to avoid capital without taxation. The previous tax rate was 5%. Read also: Taxation in Indonesia: How Businesses And Individuals Can Save And Comply Tax on Royalties and Branch office Asset owners receiving royalties from companies in one of the countries are subject to a tax of 5%. Subsidiary companies sending a royalty to their mother company for using a pattern or trademark etc have to pay also a tax of 5%. Tax on Services Taxpayer using service from companies using services in Dubai may apply for a reduced withholding tax at 5%. The services are related to consulting, technical services. Double Taxation Relief Indonesia and the United Arab Emirates (UAE) have a double taxation agreement in place. This helps to avoid companies and individuals from being taxed on the same income in both countries. The agreement makes business and investment between the two nations more attractive. Companies need to fulfill a DGT form in order to apply the proper tax rate. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Tax Comparison between Dubai and Bali   Dubai Bali Dividend 0% 0% after 3 years if the dividend is reinvested 10% for resident 20% for non resident Royalties 0% 15% for resident 20% non resident Interest 0% 20% for Permanent establishment and non resident10% for individual resident Corporate income tax 0% up to USD 100 000 9% above USD 100 000 0.5% up to USD 300 000 on income11 to 13% above 4.8 billion IDR Personal income tax none Progressive rate Invest in Dubai or Bali Investing in Bali from Dubai is possible as an individual or through a company. The tax treaty between UAE and Dubai from 2021 makes this structure advantageous for the taxpayer. While Indonesia used to tax at 20% non resident, this treaty reduced the tax to 10% on dividend treating Dubai company and resident as Indonesian resident. Foreign investment in Indonesia and Dubai plays an important role in this scenario. At the same time the money sent by a Dubai company to an Indonesian company will not be taxed. Interesting point of this comparison is the interesting tax rate on companies in Bali.  While Dubai tax at 9% companies with income, Bali appears to be more advantageous for new companies with a tax rate at only 0.5% on the revenue the first 3 years under conditions Bali and Indonesia also have interesting tax facilities with no taxation on dividends when those dividends are reinvested in the economy or the company.  Contact us to know more if you want to open a company in Bali and hesitate between Bali and Dubai. Read also: The Latest Guide to Corporate Income Tax in Indonesia [2024] FAQ 1. What is the significance of the tax treaty between Bali and Dubai for investors? The tax treaty between Bali and Dubai, effective from January 1st, 2022, offers significant advantages for investors. It reduces the tax rate on dividends for Dubai-based companies and residents investing in Bali from 20% to 10%, aligning them with Indonesian residents. 2. How does the tax treaty impact dividend taxation for companies and individuals? Companies incorporated or holding KITAS in Indonesia and Bali are subject to a 10% tax rate on dividends as residents and 20% as non-residents. However, companies incorporated in Dubai or individuals are exempt from dividend taxation, making Dubai an appealing destination for non-resident investors. 3. What are the tax implications for interests under the treaty? According to the UAE-Indonesia tax treaty, companies are required to pay a 7% tax on interest rates paid to third parties, up from the previous rate of 5%. This withholding tax aims to prevent capital from being transferred overseas without taxation.        
- [Indonesia implements the "Bridge Visa"](https://ilaglobalconsulting.com/indonesia-implements-the-bridge-visa/): Indonesia implements a Bridge visa for foreigners currently in Indonesia who are planning to change their visa status or their limited stay permit. The bridge visa allows foreigners to apply for a Limited Stay Permit (KITAS) or a Permanent Stay Permit (KITAP) without having to leave the country. Visa Run from Indonesia The objective of the bridging visa is to prevent foreigners from leaving Indonesia during the transition of their stay permit. Similar to the onshore process implemented during the Covid, this Bridge Visa saves costs to foreigners who do not need to travel overseas to Singapore, Australia, Thailand, or Malaysia and enter Indonesia to activate their visa once this one has been issued. Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. Bridge Visa for KITAS holders changing their type of KITAS KITAS holders who have a limited stay permit going to expire and need to change sponsors can now stay in Indonesia and do not need to fly out and reenter the country to activate their new KITAS. This simplifies the visa application process, making it more convenient and cost-effective. Bridge Visa for Temporary Stay Permit to Limited Stay Permit The great news is that travellers with a temporary stay permit, such as Visa On Arrival who can now use this bridging visa during their transition process to a Limited Stay Permit. This new bridge visa allows the foreigner to stay in Indonesia even if their VOA has expired without overstay. As a reminder an overstay in Indonesia costs 1 000 000 IDR per day of overstay. Application process The process is simple. Foreigners need to apply 3 days at least before the expiration date of their current visa. They need to log in online to https://evisa.imigrasi.go.id/ in order to get a 60-day bridge visa. This time period is sufficient to get the new KITAS. It is important to note that this bridge visa is not a multiple entry visa. You can contact us to know more on how to apply for the bridge visa or if you are currently looking for a Limited Stay Permit (KITAS) for Bali and the rest of Indonesia.
- [How to register a boat or a vessel in Indonesia?](https://ilaglobalconsulting.com/how-to-register-a-boat-or-a-vessel-in-indonesia/): In this article we review how boat owners or business owners can take opportunities to set up a company in diving, water tourism and operate a boat in Indonesia. We also cover the boat registration in Indonesia. The country is the biggest archipelago in the world with 14 000 islands and a lot of tourism opportunities and sea ressources. Boat ownership in Indonesia The Indonesian government authorises crew members and boat owners to sail the Indonesian ocean. While boat owners can sail and transit in Indonesia and get a 3 years authorization with a simple vessel declaration (VD) under a foreign flag. However the process becomes slightly more complicated if a foreigner wishes to register the boat under the Indonesian flag. Indonesia is restricting the ownership of a vessel under an Indonesian name or under an Indonesian entity. Boat registration in Indonesia under 7GT Indonesia makes the registration procedure based on the gross tonnage of the vessel. If the gross tonnage of the boat is under 7GT, the boat has to be registered at the local harbour (PasKecil) and registered in the central base of the government https://paskecil-ditkapel.dephub.go.id/ This type of vessel used for daily scuba diving trips, fishing or other daily activities do not need to get an Indonesian flag to travel overseas and are limited to a few miles from the coast. Boat registration in Indonesia above 7GT Boat ownership is limited in Indonesia to Indonesian national or Indonesian entities with a majority of Indonesian shareholders. Foreigners can register or import a boat under a company called PT PMA and register the vessel under the company. The purchase and boat documents have to be proceeded under the company. The boat documentation is dependent on the gross tonnage of the boat. Each vessel has in common a document called Gross Akta. This document is the ownership of the boat. Vessels above 500GT and 1000 GT require several additional documents or a certification from the BKI (the Indonesian office of classification). To register the vessel with the ministry of transportation, the boat owner has to provide the following documents
- [A Guideline on How to Create a Foundation in Indonesia (Yayasan)](https://ilaglobalconsulting.com/how-to-set-up-a-foundation-in-indonesia/): Foundations in Indonesia are known under Yayasan and are regulated by the Foundations law (Law No. 16 of 2001 amended by Law No. 28 of 2004 (“Foundation Law”), and Law No. 17 of 2013. In this articles we are reviewing how to establish and create a foundation in Indonesia and the criteria to do it. A foundation is a type of legal entity created for purposes such as social, religious, or humanitarian work and is designed to operate indefinitely. Its primary goal is not to generate profit for distribution among its founders or the members. Different types of foundation in Indonesia If you plan to open a foundation in Indonesia or a place like Bali, the government makes a distinction between foundations based on the founders of the Yaysan. Local Foundation A local Yayasan is considered local when all the founders are Indonesian. The contribution of the founders to the local Yayasan is only 10 000 000 IDR. The process to establish is fast and easy. The founders need to sign a deed (Akta) at the notary and get the ministry approval (MOHLR). Foundation founded by a foreign entity If you are planning to open a branch of your foundation in Indonesia  it is not possible to have a legal relation between the entities. However Indonesia offers the possibility to establish a Foreign Yayasan if you already own a company in Indonesia. This entity should exist at least for 5 years. The capital contribution should be 10 000 000 000 IDR which is the same as the PT PMA (LLC). The foundation needs to get a recommendation from the Ministry of Foreign Affairs (MOFA) and then get approval from the Ministry of Law and Human Rights (MOLHR) to create a foundation in Indonesia. Foundation founded by foreign individuals Similar to the previous one, Yayasan with at least one foreign founder, needs to follow the similar process of approval with the MOFA and MOLHR. The foreigner must have been resident in Indonesia for at least 5 years. However, the initial contribution is lower at 1 000 000 000 IDR. Type of YaYasan Initial Contribution Local 10 000 000 IDR Foreign with at least one foreign founder 1 000 000 000 IDR Foreign founded by foreign entity (PMA) 10 000 000 000 IDR Read Also: 12 Things To Know To Create A Company In Indonesia Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process.   Organisation of a foundation – NGO – YaYasan in Indonesia Founders The founders are the person or entity initiating the creation of the foundation, YaYasan in Indonesia.   Board of Trustee Chairman The chairman of the board of Trustee can be one of the founders. If there is more than one founder in the BOT they all sit as chairman of the BOT. Members of the BOT If the foundation is a local YaYasan, foreigners cannot work under the BOT. However if the YaYasan is a foreign one, the BOT can hire foreigners to sit at the board. The foreigners have to apply for a work permit and get a limited stay permit (KITAS) Scope of the BOT The members can dismiss the board of management and supervisors. The BOT prepares and approves the budget and defines the orientation of the foundation.   Board of Management Chairman – Secretary – Treasurer The chairman of the BOM is appointed by the board of Trustee (BOT). The members are appointed for a period of 5 years. At least one Indonesian has to sit at the BOM. However only Indonesians can sit in a local foundation. Scope of the BOM The board of management is responsible for handling the operations on a daily basis. In a foundation, they may face personal and joint liability in cases of bankruptcy or if financial statements are misleading due to their wrongful actions or negligence. They are also at risk of personal liability for failing to fulfil their responsibilities. Board of Supervisors and Advisors Members At least 1 supervisor. Foreigners can sit in the BOS if the YaYasan is a foreign YaYasan. Foreigners need to apply for a work permit and a limited stay permit (KITAS). Scope of the BOM The BOS is responsible for supervising the BOM and can held as accountable in case of bankruptcy or illegal activity of the YaYasan. FAQ Can I hire foreigners under a YaYasan? A foundation can hire foreigners and has to apply for a working permit and get a KITAS for its employee Can foreigners create a foundation in Indonesia or Bali? Yes foreigners can create a foundation is they have been resident for 5 years Can I get a salary from the foundation? Members of a board cannot get a salary from the foundation except if they are members of the Board of Management only.
- [How to Create a Travel Agency in Bali?](https://ilaglobalconsulting.com/how-to-create-travel-agency-bali/): If you’re looking to create a travel agency in Indonesia – Bali, you’ll need to understand the local business environment and legal nuances. This article cuts through the complexity to give you a straightforward guide on setting up your travel agency in Indonesia. Key Takeaways Starting a travel agency in Bali involves navigating legal requirements including ownership laws, substantial capital, and multilevel licensing, with registration in ASITA being crucial for integrating travel packages. To establish a successful travel agency in Bali, one needs to differentiate between agency and tour activities, select the appropriate legal entity, understand the registration process, and create partnerships with local businesses to optimize customer experiences. Building strong networks with local hotels, service providers, and domestic flight companies is essential for offering high-quality, tailored travel experiences, competitive rates, and flexible travel options to enhance client satisfaction and facilitate seamless vacations. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Navigating the Legal Landscape for Your Bali Travel Agency Establishing and create a travel agency in Bali Indonesia entails navigating through regulatory frameworks specific to this Indonesian destination. Setting up you travel agency in Indonesia The only legal option to own a travel agency or Tour and Travel is trough a company called PT PMA. This type of company is a limited liability companies (LLC), which provide the essential legal framework needed to conduct travel and tourism activities within Indonesia. The process to start a company takes 3 days to 1.5 week. You can find more details by consulting our guide to register a company in Indonesia. Ownerships for Travel Agency Investors from ASEAN member states are permitted up to 70% ownership in such businesses, whereas non-ASEAN investors may acquire up to 67% stake via a joint venture. Setting up your business here such as a travel agency in Indonesia, involves fulfilling significant financial prerequisites, securing various permits, and setting up corporate governance that includes at least two shareholders alongside an indigenous director. ASITA License Once your company PT PMA is integrated you must enroll with ASITA—the Association of Indonesian Tours and Travel Agencies. To apply the company has to submit specific commercial documents along with endorsements and payment for membership dues. Having a local partner or staff might be essential as a proficiency in Bahasa Indonesia can be particularly beneficial when engaging with local agencies. It enhances communication within Bali’s tourism sector. Travel Agency versus Tour and Travel Activities Indonesia makes a distinction between those 2 activities as below: Travel Agent Businesses whose activities are as intermediaries for the sale of tour packages, both online and offline, packaged by travel agents: ordering tickets for land, sea, and air transportation, both for domestic and foreign destinations, booking accommodation, restaurants, and tickets for cultural arts performances, as well as visits to tourist destinations or attraction, and arranging travel documents in the form of passports and visas or other equivalent documents. Tour and Travel Activities Businesses whose activities are planning and packaging the components of tourist trips including nature tourism, which includes tourist facilities, destinations or tourist attractions and other tourism services, especially those in the territory of Indonesia in the form of tour packages, conducting and selling tour packages by channeling through travel agents and/or selling directly to tourists or consumers, providing tour guide services related to tour packages sold, both online and offline, providing tour transportation services, making accommodation reservations, restaurants, and convention venues, and selling tickets for cultural arts as well as visits to tourist attractions, arranging travel documents in the form of passports and visas or other equivalent documents. Registration Procedures and Licensing Essentials   In order to commence operations in a lawful manner, your agency is required to undergo registration with Indonesia’s Business Registry. This encompasses securing a tourism business certificate and designating an auditor. Association with ASITA is compulsory for functioning within the industry and this process differs across provinces. To fulfill the requirements of ASITA membership, you will need to provide various documents. It includes a tax card (NPWP), business identification number (NIB), recommendation letters, and pay a membership fee. Be aware that there may be substantial extra expenditures involved in setting up your tourism company. These could include costs associated with procuring domicile documentation along with other necessary permits needed for the operation of your business within Indonesia’s regulatory framework. We can accompany you through the process. Partnering with Local Businesses and Service Providers A local partner is important to develop your local network. ASITA can assist you to also make your company legit for your clients. Ensuring all legal matters are in order, the next step is to cultivate a network of local partners to elevate your clients’ experience. Forming strategic collaborations with hotels, restaurants, and various service providers is crucial. Frequently Asked Questions How do I start a travel startup? You can setup your PMA in a few days. We can start the process and finalize the process while you are in Indonesia. You can get an Investor KITAS Can you help with ASITA License? Our legal team can assist you to connect with ASITA and assist you during the process. What percentage of a travel agency in Bali can foreign investors own? Investors hailing from nations within the ASEAN bloc can get 70% Ownership while for investors from countries outside the ASEAN bloc will get 67%. Foreigners can own a tour and travel bureau at 100%. Contact us if you want to know more on how to create your travel agency in Indonesia.
- [Step-by-Step Guide: Opening a Spa in Bali](https://ilaglobalconsulting.com/opening-a-spa-in-bali/): Ready to embark on the journey to open a spa in Bali and establish your wellness center? Bali warmly welcomes foreign investments in spas and wellness ventures, making it a perfect place to start building your dream spa sanctuary today. Key Takeaways Navigating Bali’s legal framework is essential, including understanding foreign ownership through PT PMA and local regulatory compliance in safety, health, and environmental standards. Creating a unique spa concept that aligns with Balinese traditions and modern wellness, alongside a comprehensive market research strategy, is crucial in a competitive market like Bali. Operational excellence in a spa business involves choosing the right location, assembling a skilled team with the necessary certifications, equipping with quality spa apparatus, and developing effective marketing and administrative strategies. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Identifying Your Spa Concept In a market flooded with many spas, having a unique spa concept can set you apart and attract customers. Despite an important number of spa businesses, Bali offers opportunities to develop wellness centers for investors with a clear concept in mind. Researching the Market To ensure the success of your spa, comprehensive market research is imperative. The island of Bali sees a high level of competition in the spa sector due to its reputation as a destination for wellness tourism. Crafting a marketing strategy that aligns with distinct customer inclinations is key. Wellness experiences that are both sustainable and eco-conscious are particularly sought after. Tranquility within the spa setting along with professional services have been highlighted in consumer feedback as crucial factors for drawing in clientele. Studying what competitors offer in locations such as Ubud is key. The last few years Bali has seen a lot of spas and wellness centers opening. Spa with high quality services are full and it is not rate to have to book a few days in advance for the one with a great service coupled with a good marketing strategy. Read Also: How to Open a Clinic in Bali or Indonesia? Securing Your Spa Sanctuary Creating a spa sanctuary extends beyond simply having premises. It involves developing a peaceful and appealing atmosphere that complements your vision and amplifies the customer experience. For example, emulating the peaceful ambiance found at Bali Silent Retreat could draw customers looking for self-improvement opportunities. By providing flexible treatment areas both inside and outside, similar to those offered by Alila Resort in Ubud, you can enhance your spa’s attractiveness by presenting clients with environmental options. Moving forward, you also need to focus on finding an ideal location for your spa. Choosing the Right Location Choosing the right location for your spa is crucial. A location with high visibility and accessibility can maximize customer attractivity. Here are some factors to consider when selecting a spa location: Surrounding is vital for a spa business. Customers do not want to be disturbed by constructions around during their experience. Having a peaceful location increase the experience. Visibility is great but customers know how to find you when your service is great and exceptional. Consider the target market and the type of spa experience you aim to provide. For example, if you want to cater to luxury clientele, a location in an upscale neighborhood may be more suitable. Assess the competition in the area. If there are already several spas nearby, it may be more challenging to attract customers. Look for a location with ample parking space or easy access to public transportation. Consider the cost of rent or purchase in the area and ensure it aligns with your budget. After settling on a location, you need to consider how to acquire the location. Lease Period Considerations Ensuring that you have a lease for the location of your spa is an essential step in establishing your business. It is imperative to obtain at least a three-year lease period to ensure enough time for your spa to grow and stabilize. You do not want to have to find a new place after one year and have to start again your investment and work construction. As Owner you need to secure your lease and make sure your contract is strong enough. You can contact us to review or draft your contract. Lessor usually lease commercial location with a payment upfront. The cost associated with acquiring premises on such terms must be factored into the initial financial planning when opening a spa within Indonesia. Read Also: How to Open a Dream Restaurant in Bali Assembling Your Dream Team HR and staff management are essential in a spa or wellness business as it is the staff who delivers the service. To ensure the prosperity of your spa business, it’s essential to cultivate a team that is both talented and committed. Utilizing expert management knowledge in the spa sector can elevate service quality and contribute significantly to your business’s success. You must also be mindful of legal obligations, including securing proper licenses for your employees. You can contact us to review the working contract and ensure your company having a proper company regulation. Acquiring Employee Licenses In Bali, individuals working as spa therapists or massage therapists must hold appropriate certification from an accredited institution and a health certificate to legally practice. To align with the regulations and quality expectations of Bali’s spa industry, it is essential to: Ensure therapist registration at the Manpower Office. Acquire Health Certificates for all therapists from the local Health Department. Schedule periodic health examinations for your team members. Keep up-to-date employee licenses. Adhering to these protocols will guarantee that your business in Bali’s spa sector operates lawfully while upholding superior standards. Legal Framework to open a spa
- [New Import Policy for Hand-Carry Goods in Indonesia](https://ilaglobalconsulting.com/new-import-policy-for-hand-carry-goods-from-overseas/): For tourists or businesses looking to import goods in Indonesia, Indonesia has introduced significant amendments to its import policy on handy goods imported into the country. Indonesians and foreigners coming from overseas have to be aware of those new implications. This article aims to provide a comprehensive overview of the new regulations, helping you to prepare effectively for your trade and import activities in Indonesia. Overview of the New Import Policy for Indonesia The Indonesian Ministry of Trade has enacted Regulation No. 3 of 2024, amending the previous Regulation No. 36 of 2023 on Import Policy and Provisions. This amendment, effective from 10 March 2024, is designed to optimize the importation process, ensuring a smoother flow of goods into the country. Key Highlights of the Amendment Import-Permit Mechanisms: The amendment outlines specific conditions for amending or extending import permits required to bring certain goods into Indonesia. This amendment is regarding the goods arriving with a certain delay into the country. Adjusted Procedures for Imports of Supporting Goods: Supporting goods, essential for market testing and aftersales services, now benefit from smoother import procedures. These goods, when imported by registered businesses within Special Areas, are exempt from the requirement to obtain statement letters from the Director-General of Foreign Trade. Limitations on Hand-Carry Goods: the amendment imposes restrictions on the quantities and values of personal belongings that foreigners, crew members, and Indonesians can bring into Indonesia. These limitations cover a range of items, from footwear and textiles to electronics and food products. Also read: Get to Know Tax and Accounting in Bali, Indonesia (Updated 2024) Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  Implications for Businesses and Individuals Businesses importing goods into Indonesia need to stay informed about updated permit requirements to avoid disruptions in their supply chain. Individuals traveling to Indonesia should understand the limitations of new hand-carry goods to prevent fines or customs issues during entry. Contact us if you need more information on how to import products to Indonesia. FAQ Section 1. What is the new import policy in Indonesia? The Indonesian Ministry of Trade has introduced Regulation No. 3 of 2024, amending the previous Regulation No. 36 of 2023, to optimize the importation process and ensure a smoother flow of goods into the country. 2. When did the new import policy take effect? The new import policy became effective on 10 March 2024. 3. What changes have been made to import permits? The amendment outlines specific conditions under which authorities may amend or extend import permits when goods arrive late in Indonesia. 4. How have the procedures for importing supporting goods changed? Supporting goods, such as those for market testing and aftersales services, now benefit from smoother import procedures. Registered businesses in Special Areas are exempt from needing statement letters from the Director-General of Foreign Trade.
- [PSE License in Indonesia: Essential Steps for Online Businesses](https://ilaglobalconsulting.com/pse-licence-indonesia/): For any business conducting operations online within Bali or Indonesia, obtaining the PSE License is crucial. This article delineates the procedure for acquiring the PSE license. It covers the importance in meeting data protection standards, and how it supports your online company to comply with Indonesian regulations. The PSE License is vital for online businesses operating in Indonesia, ensuring the electronic system is secure and compliant with data protection standards set by the Indonesian Ministry of Information and Communication. Acquiring a PSE License involves a multi-step process including preparing documentation. Holding a PSE License offers substantial business benefits such as customer trust and compliance with the regulations. Understanding the PSE License in Indonesia Having the PSE License is crucial for any online business within Indonesia. It verifies that an online company complies with Indonesian standards and laws regarding data protection. Granted by Indonesia’s Ministry of Information and Communication, this PSE certification ensures that a company’s electronic system is secure. Read Also: Steps to Open Your Company and Business in Bali and Indonesia The Importance of Having a PSE License Obtaining a PSE License is essential for an e-commerce business, as it represents a mark of trustworthiness. It signals to customers that the security of your electronic system and their data privacy are taken seriously. Consequently, this certification is instrumental in boosting consumer confidence, engaging users more effectively, and securing the operations of successful commerce over the internet. Who need a PSE License in Indonesia All type of business having an activity online offering a range of service and collecting payment online or storing information need to apply for the PSE license. The license is mandatory for: e-commerce mobile application website having electronic transaction or collecting form or data from leads platform collecting information or payment Scope of Electronic Systems Covered by the PSE License The PSE Certificate covers an extensive array of electronic systems, encapsulating everything from e-commerce platforms to mobile applications and web portals. For operations within the jurisdiction of Indonesia, acquisition of a PSE License is compulsory. In other words, each company operating in Indonesia, having clients and the object of the business in Indonesia have to comply with the regulation. This comprehensive approach effectively safeguards Indonesia’s digital ecosystem against various threats. Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  Steps to Acquire Your PSE License Preparing Documentation for PSE Application In the beginning phase of acquiring a PSE License, document preparation is key. This stage sets the groundwork for establishing your online business in Indonesia, including formalizing your company as an authorized entity. You’ll need to secure a business license (NIB) and obtain a Taxpayer Identification Number (NPWP). Foreigners need to set up a PT PMA in regards to have a legal entity in Indonesia in order to get the NIB and NPWP. During this initial step, it’s crucial to work with us to understand the strcturure of your business. Completing this phase involves submitting comprehensive profiles that detail both the Electronic System Provider and its associated electronic system. These overviews present critical information about your online enterprise and form an important base to prepare the next steps. Read Also: 12 Things To Know To Create A Company In Indonesia OSS Platform for PSE Registration After assembling all necessary documents, the next phase is to proceed with the Online Single Submission (OSS). This electronic system represents the only channel for acquiring a PSE license. Businesses aiming to register must first accurately identify their business classification in line with their specific e-commerce operations. The company needs to have the proper NIB. During this phase: Identify and specify your sector Pinpoint your sub-sector Detail your system type, highlighting details of your company’s electronic system State where your server is hosted Elucidate on how the electronic system facilitates and manages business processes Post submission of registration through ‘PB-UMKU’ selection on the online single submission platform, you will receive in this phase an electronically PSE registration certificate. Verification and Approval by MOI Verification Team Securing the PSE License hinges on the final endorsement from the MOI Verification Team.  They will evaluate your business’s risk profile and classifies it accordingly as low, medium or high. The approval will detail the range of services allowed. This step is essential for legitimizing your online platform or website  in Indonesia, marking it as compliant and fit to partake in online transactions. Legal Framework Surrounding the PSE License Operating an online business in Indonesia requires understanding the intricate legal framework, specifically governed by Regulation No. 5 of 2020. Acquiring a PSE license is crucial as it demonstrates your commitment to user data protection and adherence to industry standards. Consequences of Operating Without a PSE License In Indonesia, conducting business without a PSE License can lead to strong consequences. The risks include facing administrative penalties such as being blocked from access, temporarily suspended, and at worst permanently barred from offering services within the country. E-commerce platforms and other businesses utilizing private electronic systems must adhere to PSE license regulations or face severe repercussions. Sanctions for non-compliance with PSE certificate requirements are enforced vigorously by the Indonesian authorities who may either directly impose through internet service providers to limit or completely cut off access to those operating illegally. Updates to PSE Regulations and Compliance Requirements Businesses operating within the Indonesian e-commerce sphere must remain alert and adaptable to retain their foothold in this constantly evolving market, especially when it comes to securing investment from foreign entities. As technological progress and shifts in market conditions occur, the Indonesian government routinely adjusts its PSE regulations accordingly. It’s
- [Essential Guide For Your Tax Declaration in Bali: Simplify Your Accounting](https://ilaglobalconsulting.com/essential-guide-to-tax-declaration-bali-simplify-your-accounting-and-compliance/): For businesses and foreign investors aiming to set up or maintain operations in Bali, gaining a solid grasp of the local tax and accounting system is essential. When establishing new enterprises or dealing with ongoing fiscal responsibilities, it’s crucial to comprehend the intricacies of Bali’s tax regulations. This guide delivers vital information on the process of tax declaration in Bali, shedding light on compliance and reporting. PT PMAs in Bali must navigate tax obligations, including Corporate Income Tax, VAT, withholding tax, and social security contributions. Tax reporting for PT PMAs is guided by a self-assessment system with specified deadlines for various tax submissions, such as annual Corporate Income Tax by April 30th and monthly tax declarations. Non-compliance with tax regulations can result in severe penalties ranging from financial fines to imprisonment, highlighting the importance of accurate and timely tax reporting, documentation, and strategic planning to avoid punitive measures. Taxes and Reporting Applicable in Indonesia Accurate bookkeeping serves as the foundation for a clear financial perspective, ensuring adherence to local regulations and accounting requirements. PT PMA have to maintain financial reporting and accounting. Non-compliance can lead to serious implications for both businesses and individuals. Establishing a business in Bali requires familiarity with local and national tax responsibilities. Here are the most common tax and obligations for a company in Bali and all province in Indonesia. Monthly Reporting Corporate Income Tax Companies based in Indonesia must pay corporate income tax, which is applicable to their global income irrespective of where it is earned. The rate for this tax has been progressively reduced from 25% previously to 22% in the year 2021 and decreased to 20% by the year 2022, calculated on the net earnings of the company. Businesses with an annual revenue under IDR 50 billion get a tax facility with a rate from 11 to 13% calculated on the net profit. New company have a tax facility drug 3 years with a taxable income at 0.5% if the income is under 4.8 Billion IDR. The company has to pay this tax every month. The payment obligation require that any taxes due are settled by the 10th following each month during which income was generated. Withholding Tax on expenses and Salaries Having income or not a company has to pay the withholding tax every month related to invoices the company pays to a service provider. The tax rate is depending on the type of service. Companies need to report the income tax of their employee and pay the tax on their behalf. Valued Added Tax Companies need to pay the VAT collected each month if they are VAT collector. A company with an income above 4.8 Billion IDR becomes VAT collector. The current VAT rate in Indonesia in 2024 is 11%. The VAT is due by the 20th of the month following the collection. Local Tax Each province are also in charge to collect some taxes and have different applicable tax rate. A spa or a property rented on AirBnb are taxed at a different rate depending on the location of the business. The company needs to pay every month the tax to the local tax office. A local tax of 10% is applied on daily rental such as AirBnb while some spa can pay tax at 15%. BPJS (Social Security) Companies have to declare at least two local employees at the social security. The monthly payment is based on the Gross salary of the employee. Read Also: Corporate Income Tax in Indonesia Quarter Report (LKPM) Besides the monthly report and tax, each PT PMA has to report quarterly to the BKPM. The company has to upload their report (LKPM) in OSS. The report contains information about the assets, liabilities, employees, social impact of the company. This report is mandatory and avoiding this reporting can lead to sanctions such as the closure of the company. Annual Corporate Income Tax Reporting The annual reporting (CIT) is a vital element in the taxation protocol for PT PMAs operating in Bali, Lombok, Jakarta or anywhere in Indonesia. The company has to report their annual income tax between January and end of April following the fiscal year. The company needs to present its annual financial statements during this period. In the realm of tax and accounting in Bali, the fixed Corporate Income Tax (CIT) rate applies to taxable income, including capital gains from property sales. All PT PMAs must strictly adhere to Indonesian tax regulations when filing their annual returns to ensure compliance and avoid potential penalties. In order to simplify compliance, the Tax Office provides an electronic platform allowing taxpayers such as PT PMAs, ensuring accurate and timely submission of these critical documents. Annual Tax Declaration for the director and KITAS holder The director of the company has to declare its personal tax every year before the end of March following the fiscal year. If the director fails to declare its tax, the company is not able to declare its tax and no amendment can be also done on the company. This situation happens often and some company are in the incapacity to make changes to operate. Read Also: Employment Contracts in Indonesia: A Comprehensive Overview Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Tax Penalties for non compliance Failing to adhere to tax regulations can result in significant fines. Depending on the type of tax involved, penalties for delayed tax reporting or paying less than what is due range from IDR 100,000 up to IDR 1,000,000. If a taxpayer’s appeal fails, there is an extra fine worth half to the full amount of the unpaid taxes. In the context of tax and accounting in Bali,
- [Your Guide To Become A Real Estate Agent Or Broker In Indonesia](https://ilaglobalconsulting.com/your-guide-to-become-a-real-estate-agent-or-broker-in-bali-and-indonesia/): Are you looking to work legally as broker in Bali, Lombok and other places in Indonesia? Bali have seen the property market booming and lot of new actors entered the market as brokers or real estate agents. The demand from potential buyers for land, villas, or other properties has attracted many agents to work independently without being licensed real estate agents. This article explains how to become a broker in Indonesia as a foreigner and highlights the importance of verifying the licenses of all brokerage firms. The real estate industry in Bali and the rest of Indonesia comes with specific legal requirements for those who want to work as or become an independent broker. Here’s a guide to selling property in Bali as a broker. What is a real estate brokerage? A broker, also known as a real estate trading intermediary company, is a type of business entity engaged in activities such as acting as an intermediary on property between buyers and sellers. Buyers and sellers are considered as the clients of the agent. The broker can also act as an intermediary to rent a property and conducts research for the clients. The real estate agents work independently as an individual or a legal entity such as a real estate agent company. The broker or real estate agent is authorized to advertise and offer marketing service for the property. As we know, real estate brokers or agents consist of two types: those who work under the auspices of a brokerage firm and those who work independently. Foreigners cannot work independently as a an individual broker and need to work under a company. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. What licenses do you need as a real estate brokerage company? Here’s what you need to prepare before embarking on your real estate journey in Indonesia: Getting your company in a form of limited liability company. The real estate agent business also facilitates both local and foreign investment portfolios (PT PMA). Obtain the business license (NIB) through the Online Single Submission (oss.go.id) as a real estate agent company. In addition, the operation of a real estate agent/brokerage necessitate the possession of additional types of licenses. Which is called SIU-P4. SIU-P4/Brokerage Licensed real estate agents SIU-P4 is an abbreviation for Real Estate Trading Brokerage Company Business License known as a brokerage license, which serves as a certificate or license allowing property brokers to work professionally. This is in conformity with the Ministry of Trade of the Republic of Indonesia’s Regulation No.33/M-DAG/PER/8/2008 on Property Trade Intermediary Companies. Every broker company must have a SIU-P4.  The Director of Business Development and Company Registration of the Ministry of Trade, renews the license every five years. As a result, SIU-P4 is a necessity for establishing a property agent and being regarded as qualified to serve as a property broker. Read Also : How to get a building permit in Indonesia How to get a SIU-P4 or brokerage license? Brokers who want to apply for SIU-P4 must meet the following requirements: A Real estate brokerage company (PT PMA) needs to have a minimum of two certified experts. These experts must demonstrate their expertise with a Property Trade Intermediary Competency Certificate and may not work for another real estate brokerage company (Article 5 of Minister of Trade Regulation 51/M-DAG/PER/7/2017). To become a broker in Indonesia as a foreigner, the first step is to register the company with the Indonesian Real Estate Broker Association (AREBI), which offers training for aspiring real estate brokers. Next, complete an expert assessment at the Professional Certification Institute (LSP). After undergoing training at AREBI, prospective brokers must pass an exam. If all requirements are met, the broker will receive expert certification. Once the certification obtained along with the company’s legal documents and the AREBI certifies itself, the broker can get the license from the Ministry of trade. What is the importance of the SIU-P4/Brokerage License in Bali? SIU-P4 is an essential legal requirement for brokers and property agents in Indonesia. Having a SIU-P4 demonstrates that the property agent is a legitimate business company that has met the government’s standards. As a property agent with SIU-P4, you will have an easier time accessing housing developments and obtaining government approvals. SIU-P4 provides legal protection for property brokers when conducting business. If there is a dispute or legal problem involving a property transaction, the presence of a SIU-P4 will provide as confirmation that the property agent is functioning legally, lowering the danger of major legal complications. SIU-P4 is an essential certificate for agents and brokers to operate legally. For those looking to become a broker in Indonesia as a foreigner, understanding these licensing requirements is crucial. Ensuring compliance with local regulations will help you establish a reputable and legally compliant brokerage business in Indonesia. Social media and advertising Facebook and other market places have seen recently a large number of real estate agent claiming themself independent broker. A few locals are also working without the appropriate license. This is due to a lack of knowledge where individuals or company operate without knowing the regulation. If you work independently or as a property agent, this license authorizes you to promote your company as a broker. Things to consider A broker license is also here to bring trust and protect buyer. Professional broker can offer several services. The license is worth if you consider to operate in Indonesia as areal estate agent in Bali. If you aim to become a broker in Indonesia as a foreigner, obtaining the necessary licenses and understanding local regulations are crucial steps. Contact ILA today to schedule a consultation and explore how we can help you navigate the exciting opportunities within the Indonesian
- [Guide to Obtain an Alcohol License in Indonesia](https://ilaglobalconsulting.com/get-alcohol-license-bali-indonesia/): This guide explains how to obtain an alcohol license in Indonesia, specifically in Bali, for businesses and companies looking to sell alcohol as retailers. Retailers include restaurants, bars, or any establishment offering alcoholic beverages to customers. Indonesia, a predominantly Muslim country, does not prohibit alcohol. In cities like Jakarta and Bali, finding popular drinks like Bintang beer is easy. Bali has also seen a rise in local alcohol production, including beer, wine, and spirits. For restaurants and bars, selling alcoholic beverages is essential—even in Ubud, where many vegan restaurants also serve alcohol. Dealing with alcohol in Bali or other parts of Indonesia need some considerations. A few importers have the authorized license to import alcohol on the territory if you consider importing spirits from overseas and respecting the law. Read also: 12 Things To Know To Create A Company In Indonesia Overview of Indonesian Alcohol Licensing Laws Indonesia’s approach to alcohol sales is governed by strict regulations to ensure public safety and compliance with local customs. The Ministry of Trade and the local government bodies are primarily responsible for issuing alcohol licenses, with regulations varying slightly between regions, including Bali and Lombok. It’s crucial to familiarize yourself with these nuances to avoid legal pitfalls. Why do you need an alcohol license for your restaurant or bar in Bali? Indonesia has some restrictions on how you can sell alcohol. The alcohol industry is very specific and need some considerations if you plan to sell beer, spirits or wines. It is important to follow the rules as the local governments can conduct some inspections leading to important penalties with a temporary or final closure of the business you operate. To legally sell alcohol in your establishment, you must obtain an alcohol license in Indonesia. A valid alcohol license not only ensures your establishment operates legally but also builds trust with customers and local authorities. However an alcohol license to sell beer, wine or spirit doesn’t authorize you to produce alcohol. Which criteria to meet to obtain an alcohol license in Bali or Indonesia? Foreigners willing to obtain an alcohol license must meet those major requirements to Business Registration: Your business must be legally registered in Indonesia. You need to establish a PT PMA (foreign-owned company) with a business license (NIB) in line with your business activity. If you plan to open a restaurant or a bar the first step is to make sure your current or new company will be open with the correct license. Visa and Work Permit: Opening a bar or restaurant does not mean you can work in your business and serve alcohol to your customer even if you have the appropriate license. Working permits (KITAS) in Indonesia are really specific and being caught serving alcohol can bring a fine or deportation. Location: Your business location must comply with local zoning laws for alcohol sales, which can vary significantly between Kapubaten and Desa. Contract with a certified distributor: Serving spirits in a restaurant requires to have a partnership agreement with a certified distributor authorized to sell alcoholic beverages or spirit as wholesaler. It is important to check that your distributor has all necessary documents as it can have some consequences on your application itself. You can contact us if you need more details to check their documentation. Read also: How to Register your Company in Bali and Jakarta Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  Different class of Alcohol license in Indonesia The Indonesian government classified alcohol in 3 class depending on the level of ethyl or ethanol contained in the beverage. Class Definition A Containing ethyl alcohol or ethanol (c2H50H) with a level 1% up to 5%; B Containing ethyl alcohol or ethanol (c2H50H) with a level of more than 5% up to 20%; C Containing ethyl alcohol or ethanol (c2H50H) with a level of more than 20% up to 55%. Step-by-Step Guide to Applying for an Alcohol License NPPBKC Required Documents and business requirements for alcohol license The application process requires meticulous preparation of documents, including: Deed of Establishment Ministry Approval Tax ID/NPWP Identity and NPWP of the Director Business Identification Number (NIB) Standard Certificate from OSS System Detailed information about the business location, including floor plans and photo. Procedure The application process involves different parties such as the costumes and local authorities. It is important to make sure that all your documents are up to date before starting the process and not operating before the application. Online single submission (OSS) The first step is to submit your application online through the online single submission system (OSS) to apply for the Operating License (PB UMKU) and select the appropriate business code before applying to get the certificate of Direct Seller of Alcohol Drinks (SKPL) for the class of alcohol your business will sell. You need to submit the payment of your application online before continuing with the alcohol license application. Site inspection The second step to obtain an alcohol license in Indonesia is the site inspection. The local authorities will conduct an inspection to verify where the alcohol is stored and sold to your clients. The director of the company PT PMA will have an interview with the authorities. Issuance Final Submission: Submit additional documents online, including a statement letter and business presentation. Business Presentation: Present your business case at the Customs office. Licence Issuance: After verification, the NPPBKC will be issued, valid for 5 years. Navigating Alcohol Taxation in Indonesia Understanding alcohol taxation in Indonesia is pivotal for any foreign entrepreneur looking to enter the alcohol selling market. Indonesia imposes a hefty
- [How to open a clinic in Bali and Indonesia? - Medical tourism and beauty salon](https://ilaglobalconsulting.com/how-to-open-a-clinic-in-bali/): More foreigners or foreign clinics are now looking at how to open a clinic in Bali, Jakarta, or the rest of Indonesia. Discover in this guide how to do it. 1. Opening a beauty clinic in Bali for foreigners Offering laser, injection, and dermatology services involves multiple licensing procedures. Here’s a detailed breakdown of the process if you consider to open a clinic in Bali or somewhere else in Indonesia and Jakarta. a. Business License (IU/Tanda Daftar Usaha): Register your business online through the Online Single Submission (OSS) system (https://oss.go.id/portal/: https://oss.go.id/portal/). Choose the appropriate business classification based on your clinic’s services (e.g., “Klinik Kecantikan” for a general beauty clinic). Prepare required documents like company deed, shareholder information, and tax identification number. Submit the application and pay the processing fees. Upon approval, receive your Business License, which allows you to operate legally. b. Clinic Permit (Izin Klinik): Apply for the Izin Klinik from the Ministry of Health office in Bali. Meet specific requirements regarding: Clinic facility: Minimum space, ventilation, lighting, accessibility, waste disposal. Equipment: Availability of necessary equipment for laser, injection, and dermatology services as per regulations. Personnel: Qualified doctors and nurses with relevant licenses and experience. Operational procedures: Infection control protocols, patient management systems, emergency plans. Prepare an application package with detailed documents related to your clinic’s infrastructure, equipment, personnel, and operating procedures. Submit the application and pay the processing fees. After inspection and approval by the Ministry of Health, receive your Izin Klinik, authorizing you to operate as a medical clinic. c. Medical Practice Licenses (SIP/Surat Izin Praktik): All doctors and nurses working in your clinic require individual SIP licenses issued by the Indonesian Medical Council (KKI). For Indonesian doctors: Submit their medical degrees, professional licenses, and certificates of relevant specialization to KKI Bali. For foreign doctors: Apply for a competence evaluation by KKI to assess their qualifications and skills for practicing in Indonesia. Complete a three-month adaptation program at a designated Indonesian hospital or clinic to familiarize themselves with local healthcare practices. Upon successful evaluation and program completion, apply for a SIP license from KKI Bali. d. Cosmetics Registration (BPOM): If you plan to use medical product, ensure the product you import and distribute have been registered. Register all cosmetic products used in your clinic with the National Agency for Food and Drug Control (BPOM). This includes injectables, laser equipment consumables, topical medications, and skincare products. Visit the BPOM website (https://www.pom.go.id/: https://www.pom.go.id/) for registration guidelines and required documents. e. Additional Permits: Depending on the specific laser devices or medications used, additional permits may be necessary from relevant authorities. Medical devices in Indonesia need to be registered. You also need to ensure your team received a proper training and got the certification from the official distributor. It is important to notice that you cannot import a medical device by yourself if the device has not been approved and registered. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. 2. How to practice as a foreign doctor in Indonesia and Bali and open a clinic? As of December 2023, yes, a foreign doctor can practice in a private beauty clinic in Indonesia under certain conditions: Law No. 17 of 2023, also known as the Omnibus Health Law, opened the door for qualified foreign medical personnel to practice in Indonesia. This includes doctors specializing in aesthetic procedures relevant to beauty clinics. a. Specific requirements and limitations: Specialization: Foreign doctors can only practice in their area of specialization. For beauty clinics, this would mean doctors qualified in dermatology, plastic surgery, or other relevant fields. Competence Evaluation: Foreign doctors must undergo a competence evaluation conducted by the Indonesian Ministry of Health. This ensures they meet the required standards for practicing in Indonesia. Adaptation Program: After passing the evaluation, foreign doctors must complete an adaptation program at a local hospital or clinic. This program helps them familiarize themselves with the Indonesian healthcare system and medical practices. Work Permit: Foreign doctors need a special work permit to practice in Indonesia. This permit is typically valid for two years, with the possibility of a one-year extension. b. Additional points to consider to open a clinic in Bali: The Indonesian Medical Council (KKI) has issued regulations specifically for foreign doctors practicing in the country. These regulations detail the application process, required documents, and fees. It’s important to note that the regulations around foreign doctors are relatively new and may evolve over time. Staying updated on the latest developments is crucial. Overall, while there are hurdles, it is now possible for qualified foreign doctors to contribute their expertise to the growing beauty clinic sector in Indonesia. Indonesian Ministry of Health website: https://kemkes.go.id/ Indonesian Medical Council website: https://kki.go.id/ Law No. 17 of 2023: https://jdih-bsk.kemenkumham.go.id/ 3. Type of clinic in Indonesia In Indonesia, a diverse range of clinics cater to the healthcare needs of the population, reflecting the country’s vast and varied healthcare landscape. Overall, the diverse array of clinics in Indonesia underscores the country’s commitment to providing comprehensive healthcare services that cater to the diverse needs of its population. While setting up a clinic is straightforward, careful tax planning is essential, particularly in Indonesia a. By Focus/Specialty: Klinik Kecantikan Umum: General beauty clinics offering basic facials, waxing, hair removal, and skin treatments. Klinik Dermatologi: Specialized clinics focusing on skin health, diagnosis, and treatment of skin conditions. Klinik Bedah Plastik: Plastic surgery clinics performing cosmetic and reconstructive surgeries. Klinik Injeksi Kecantikan: Offering cosmetic injections like Botox and fillers. Klinik Perawatan Laser: Utilizing laser technology for various aesthetic procedures. Klinik Gigi Estetika: Focusing on cosmetic dentistry for smile enhancement. Klinik Wellness Holistik: Combining medical aesthetics with traditional therapies and lifestyle guidance for holistic well-being. Spa Medis: Integrating spa treatments with medical procedures for a relaxing and results-oriented experience. Klinik Rawat Jalan: Outpatient clinics
- [HOW TO CREATE A COMPANY IN INDONESIA: 12 ESSENTIALS THINGS TO KNOW](https://ilaglobalconsulting.com/create-company-indonesia/): The largest economy of Southeast Asia is attracting each year more and more foreign direct investments (90 billion USD in 2023). As a company or an individual willing to invest and create a company in Indonesia, there are several types of business entities that investors can choose to enter the market. Despite Indonesia having several forms of companies (PT PMDN, CV, PT Perorangan), only two classes of companies are open to foreigners: the PT PMA (a form of LLC) and the representative office (BUJKA, KPPA, KP3A, JPTLA, KP3A PMSE). Here are the most frequent questions companies or individuals ask before starting a company in Indonesia. 1. Are all sectors open for investment? In 2021, Indonesia opened most of its sectors to foreign investment. Sectors such as e-commerce or clinics are now eligible for foreign investment. Foreigners can open companies in Indonesia without partnering with Indonesians for most of the sectors. Some activities are prohibited in Indonesia as in the image below (from BKPM report 2022). Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. 2. Do I need an Indonesian partner to open a company in Bali or Indonesia? For most business activities, you do not need an Indonesian partner. PT PMA allows 100% foreign shareholding. However, in some sectors, such architecture may require an Indonesian partner. It is important to consult and determine your activity before creating your business in Indonesia. Some sectors such as boat ownership still require 51% Indonesian partner while architecture, or design, travel agencies require 33% Indonesian ownership 3. How many shareholders do you need to open a company? PT PMA is a form of LLC (limited liability company) that requires a minimum of two shareholders. Shareholders can be an individual and/or a corporation. If you have a company outside Indonesia and want to open a branch, the company can be the main shareholder. The second shareholder can be another entity you own or you as an individual. The current minimum percentage of a shareholder is at 0.01% due to the minimum investment a foreign has to invest in a company (100 000 000 IDR). 4. How long does it take to open a company in Indonesia or Bali? Opening a PT PMA in Indonesia takes 3 days to 2 weeks. Indonesia issues the business license based on the risk of the activity (from Low Risk to High Risk). Depending on the level of Risk, some additional licenses might be required, and the verification process can take more or less time. Once the company is open and have your tax card, you may need some additional approval (example: alcohol licence, import licence, education, etc.) 5. Can you open a representative office in Indonesia and Bali? A foreign entity can open a representative office in Indonesia. The representative office (RO) cannot generate income in Indonesia. The RO cannot issue invoices. However, the representative office can hire foreigners and local staff. There are several types of representative offices, such as KPPA, KP3A, and BUJKA. The form of the representative office depends on the activity of the parent company and the activity in Indonesia. In some circumstances, it might be better to open a representative office than a PT PMA. Opening a representative office is fast but requires to certify a few documents at the embassy. 6. What is the procedure to open a company in Indonesia and Bali? To establish a PT PMA in Indonesia, you must follow specific procedures to create a business company in the country, including obtaining the necessary permits and fulfilling regulatory requirements: Sign a deed of establishment with a notary. You can use a company to assist you, and you do not need to come to Indonesia. Get ministry approval from the notary or the person assisting you Get the tax card of the company (NPWP) Obtain the business licenses (NIB and PKKPR) and certificate standards. These steps are crucial to legally creating a company in Indonesia and Bali, ensuring compliance with local regulations and facilitating smooth business operations. 7. Can I open a company remotely? It is not necessary to be in Indonesia to open a company. However, we recommend determining the correct structure based on your activity and tax exposure. The process can start online as long as the foreigner can provide a Power of Attorney. However the opening of the bank account has to be done with the director of the company coming to Indonesia to finalize the process. 8. Do you need a resident director? It is not necessary to live in Indonesia to open a company. However, the company requires a resident director. A foreigner can be considered as a resident director if the director has a limited stay permit (KITAS). The KITAS can be obtained during the process by applying for an investor visa or a working permit. The director of the company will get a personal tax number to be able to declare the tax of the PT PMA or the RO. 9. What is the tax rate for a company in Indonesia? Indonesia has a low tax rate for new companies. Companies are taxed at 0.5% on their revenue for the first 3 years if they do not exceed a certain amount of income. However, there are other taxes to consider in your tax planning. You can consult the article here. As an entity or foreign investor, we do recommend having proper tax planning for your company and planning in advance how your company will be taxed. 10. Can a company own asset in Indonesia? Owning a manufacturer or a property in Indonesia is possible under a company. Your company will own
- [Real Estate Developer in Bali and Indonesia: A Comprehensive Guide](https://ilaglobalconsulting.com/bali-indonesia-real-estate-a-comprehensive-guide/): Are you contemplating an investment in Bali’s real estate market or aiming to collaborate with a Bali Indonesia real estate developers to bring your property vision to life? This guide provides a clear overview of key roles, common mistakes to avoid, and essential legal requirements. Discover the strategic services offered by Bali Indonesia real estate developers and explore attractive locations for your next investment project. Key Takeaways A property developer in Bali and Indonesia is focused on adding value and selling property at a profit, whereas a contractor is responsible for the actual construction; A foreign-owned developer (PT PMA) must partner with a local contractor to operate as contractor When building a villa in Bali, common mistakes to avoid include selecting an overcrowded location, neglecting legal complexities such as road access agreements and lease terms, and ensuring stringent quality checks on materials. Success in real estate development in Bali hinges on legal compliance with Indonesian property laws, deployment of professionals for market studies, and due diligence in aspects such as land ownership, zoning, and tax payments. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. What is a property developer? Developer versus Contractor In the realm of real estate, the roles of Bali Indonesia real estate developers and contractors often intertwine, yet they differ significantly in their objectives and functions. A real estate developer in Bali initiates a venture with the primary aim of adding value to a land acquisition. Whether it’s purchasing land to build a villa, a restaurant, a complex of villas, or any structure that enhances the land’s worth, the developer’s goal is to sell it at a higher price than the acquisition cost. On the other hand, a contractor is hired to bring the developer’s vision to life. They build and manage the project, translating the developer’s concept into reality. The distinction becomes more significant in the context of a foreign-owned company, also known as a PMA. In Bali and Indonesia, a PMA cannot operate as a contractor without partnering with a local company classified as a contractor. 8 mistakes to avoid while building a villa in Bali While the process of constructing your dream villa in Bali can be thrilling, it also comes with potential pitfalls. Recognizing these mistakes will help you avoid them and facilitate a seamless journey to property ownership. Business issues One such mistake is buying a villa from an owner and finding yourself boxed in by other villas. This could limit your privacy and potentially reduce the value of your property. It is common to see landowners leasing properties to foreigners and using the cash to build next to the property, reducing the attractiveness of your development—a situation that knowledgeable Bali Indonesia real estate developers can help you navigate. Road access agreement. Legal complexities can also pose significant challenges. For instance, the absence of a road access agreement to the property can lead to logistical issues later on, a challenge often addressed by experienced Bali Indonesia real estate developers. Some developers or investors had to pay extra fee to access to their property as the road access was not negotiated during the original lease or purchase agreement. Choosing the right location that not suits your target market. Lot of developers are developing properties far from the main attraction or active areas. Finding property 20 to 25 minutes from the main restaurant might suits expat looking to live in a residential area. However this type of location will be unlikely attract tourists booking properties for 2 nights. Not conducting rigorous quality checks on materials used by the contractor to ensure durability and longevity. Trying to cut construction cost and use poor quality materials. Legal issues Weak contracts with the owner or contractor can also spell trouble. If the owner challenges the lease after a few years or the contractor disappears, you could find yourself in a precarious situation. Lack of Legal Compliance and Transparency. Understanding the legal landscape plays a key role in property development in Bali. Ensuring a developer’s adherence to Indonesian property laws, particularly regarding leasehold or PT PMA structures, is vital for legal compliance in property transactions. Equally important is the zoning law, which ensures that development respects cultural and environmental landscapes. Contracts for off-plan investments should have clauses safeguarding the investor’s interests, such as specifying compensation or options for withdrawal in case of project delays. With the increasing significance of sustainable and environmentally friendly development practices, aligning with legal compliance has never been more critical. Not choosing the right partner for the construction might seen your building permit rejected specially if you have ongoing projects. This lack of building permit has consequences for the investor in its ability to rent out its property on Airbnb. How to succeed as Real Estate Developer in Bali? Property development in Bali encompasses a wide array of services designed to cater to the varying needs of investors. Developers, including Bali Indonesia real estate developers, often partner with property management firms and legal experts while executing thorough professional market analyses, ensuring robust support for their clientele. In exploring these auxiliary entities, we will shed light on how they enhance the process of property development within existing endeavors. Partnership with a property management company to increase the value of the project A real estate company in Bali can significantly bolster the worth of a project through collaboration with a property management firm. The expertise of a Bali Indonesia real estate developers is vital for adeptly overseeing the daily aspects of commercial properties, including upkeep, repairs, and fostering positive tenant relationships. Not only does this facilitate seamless operations within these properties, but it also heightens their attractiveness to prospective tenants or purchasers. This enhancement in appeal directly contributes to
- [Bali's Balancing Act: A Crossroads of Paradise and challenges](https://ilaglobalconsulting.com/growth-in-bali-crossroads-of-paradise-and-challenges/): Bali, a tapestry woven from emerald rice paddies, turquoise waters, and time-honored traditions, has always captivated hearts with its intoxicating blend of beauty and serenity. Yet, amidst the growth in Bali, this idyllic island finds itself at a critical juncture. Will it navigate the tumultuous currents of globalization and climate change, emerging as a beacon of sustainable prosperity and cultural vibrancy? Or will it succumb to the siren song of unchecked development, sacrificing its very essence at the altar of progress? Define Bali’s future The Tourist Conundrum: Tourism, the lifeblood of Bali’s economy, pulsates through its veins. But this dependence, like a potent elixir, can become a double-edged sword. Unfettered tourist influxes strain infrastructure, deplete resources, and threaten the delicate fabric of local culture.  Beyond the Beach Blanket: Diversifying the economic orchestra is the key to a sustainable future. Nurturing the fertile soil of agriculture, fostering the tech sector’s budding blossoms, and harnessing the sun’s renewable energy are just a few melodies in the symphony of economic diversification.  Digital Nomads: A New Verse in the Narrative: As the growth in Bali intertwines with the rise of remote work, the island’s allure will draw a new wave of inhabitants – the digital nomads. These skilled professionals, equipped with laptops and a thirst for adventure, present an opportunity to infuse fresh talent and innovation into Bali’s economy. Bali must carefully manage their arrival to prevent widening existing inequalities and to ensure equitable access to resources and infrastructure for all. Nature’s Whispering Warnings: Bali’s low-lying geography, nestled in the ocean’s embrace, makes it vulnerable to the rising sea levels and extreme weather events that climate change unleashes. Adapting infrastructure, shielding coastal ecosystems, and embracing renewable energy are not just whispers on the wind, but urgent calls to action. Waste Not, Want Not: Rapid development, while bringing progress, has also brought with it the burden of waste management. Implementing efficient collection and recycling systems, alongside promoting responsible consumption habits, are critical steps in keeping Bali’s pristine beauty from drowning in its own waste. Cultural Crossroads: Balancing the growth of Bali with the preservation of its rich cultural heritage requires a delicate approach. Safeguarding ancient traditions, languages, and art forms is not about resisting change but about preserving the threads that make Bali uniquely captivating. A Collaborative Symphony: Navigating these challenges and seizing the opportunities requires a harmonious orchestra. Government, businesses, communities, and individuals must join hands, each instrument contributing its unique melody to the symphony of sustainable development. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. The Road Ahead: Navigating Bali’s Future: Sustainable Tourism: Promote responsible tourism practices that minimize environmental impact, support local communities, and preserve cultural heritage. Encourage eco-friendly accommodation, responsible waste disposal, and cultural sensitivity among tourists. Economic Diversification: Invest in agriculture, renewable energy, technology, and other sectors to create new jobs and reduce dependence on tourism. Support local businesses and entrepreneurs, and foster a climate of innovation and creativity. Climate Change Adaptation: Develop and implement comprehensive plans to address rising sea levels, extreme weather events, and water scarcity. Invest in infrastructure that is resilient to climate change and promote sustainable land management practices. Waste Management Revolution: Implement efficient waste collection and recycling systems, and encourage responsible consumption habits among both residents and tourists. Explore innovative solutions like composting and waste-to-energy projects. Cultural Preservation: Support local artists and artisans, promote traditional languages and customs, and ensure equitable access to education for all. Encourage cultural exchange while respecting local traditions and values. Community Engagement: Empower local communities to participate in decision-making processes, ensure equitable distribution of benefits from development, and promote social and cultural cohesion. Bali’s future is not preordained. It is a canvas waiting to be painted, and the brushstrokes we choose today will determine its hue. By embracing a sustainable and inclusive path, we can ensure that the island of God can take and lead changes of the next decades Read also : Is Bali a Bubble About to Explode? Technology: Orchestrating a Sustainable Future for Bali Technology, once viewed as a disrupter, can be a powerful ally in Bali’s quest for a sustainable future. Imagine smart irrigation systems whispering to thirsty rice paddies, precisely delivering life-giving water while minimizing waste. Envision waste management apps connecting residents with efficient collection and recycling services, transforming waste into a resource, not a burden. Picture e-commerce platforms showcasing local crafts and agricultural produce, empowering small businesses and amplifying their reach beyond island shores. These are not mere figments of imagination, but the potential melodies technology can weave into Bali’s sustainable symphony. The growth in Bali can be further supported by smart grids powered by renewable energy, illuminating villages and resorts with minimal environmental impact. Additionally, eco-friendly transportation options, such as electric scooters and bicycles, can play a pivotal role in reducing carbon footprints and enhancing air quality across the island. Precision agriculture techniques can optimize yields, minimize water and fertilizer use, and empower farmers to make informed decisions. Impact on Communities: A Tapestry of Change and Opportunity The tapestry of Bali’s future is not woven in uniform color. Different communities will experience the impact of technology and development differently. Farmers, the backbone of the island’s agricultural heritage, must be equipped with tools to adapt to changing market demands; likewise, they should embrace sustainable practices to preserve their legacy. Similarly, fishermen facing depleting fish stocks can benefit from technology that tracks fish populations and promotes responsible fishing practices. Digital literacy initiatives and access to online marketplaces empower women, who often play crucial roles in household finances development. The conversation must include Indigenous communities, who act as custodians of ancient traditions and knowledge. Efforts must amplify their voices
- [Bali Tourist Tax: What you need to know](https://ilaglobalconsulting.com/bali-tourist-tax-what-you-need-to-know/): Starting February 14, 2024, Bali has implemented a new tourism levy for the travelers. If you are planning to visit Bali as a tourist or for business purposes, here is what you need to know. How does this tax work? Travelers need to register on the application The Love Bali App before their arrival to Ngurah Rai Bali International Airport. Who are exempted from the Bali tourist Tax According to the immigration and the Balinese government, the travelers holding a limited or Permanent stay permit are not subject to the tax and can get an exemption by registering 5 days before their arrival. Holders of Diplomatic Visas and Official Visas Crew Members of Conveyances are exempted KITAS & KITAP Holders (Holders of Temporary and permanent stay permit) Family unification visa holders Student Visa Holders Golden Visa Holders Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. Am I subject to this tax for a business trip? You can be exempted from this tax if your visa has been issued for business purposes. Travelers with a tourist visa are subject to the tax. How much is the tourist tax? The price of the tourist tax in Bali has been set at 150 000 IDR per traveller or 10 USD. How can I pay the Bali tourism tax? You can pay the tax before your departure by downloading the Bali Love app or visiting the website https://lovebali.baliprov.go.id/ Do I need to pay the tax if I arrive from Jakarta or another port of entry in Indonesia? You need to pay the tax even if you just transit in Bali or arrive in Bali from another city in Indonesia. Do I need to pay again if I travel to another island? No, not yet. If you’re planning a trip to the Gili Islands (Gili T, Gili Meno, or Gili Air) or planning to snorkel in Nusa Penida, you won’t need to pay the Bali Tourist Tax again when you return to Bali. Do I need to pay the Bali tourist tax if I do not go to Bali? The tax is a local tax and it is not due if you do not enter Bali. You can travel to other islands and not pay the tax if you do not enter or transit by Bali. What is the purpose of the Bali tourism tax? The purpose of Bali’s tourism tax includes: Funding environmental conservation efforts. Preserving cultural heritage. Enhancing tourism management for sustainability. Supporting local community development. Also read: Taxation in Indonesia: How Businesses And Individuals Can Save And Comply Is Bali the only touristic destination to impose a tax on tourism? This initiative mirrors global trends where destinations like Venice, Bhutan, and Japan implement taxes for sustainability and infrastructure improvements. Venice charges day-trippers to manage overcrowding, Bhutan levies a daily fee for its conservation efforts, and Japan’s departure tax supports tourism infrastructure. These comparisons highlight Bali’s commitment to balancing tourism with environmental sustainability and cultural preservation, ensuring a positive impact on the local community and environment. However, such as Paris, Malaysia, it might be interesting to charge the tax directly while travelers book their hotel or villa to make the process easier (meaning reinforcing tax declaration and payment from business and not making the tourist responsible for the declaration). Also read: Personal Income Tax in Indonesia for Residents & Expats
- [Steps to Open Your Company and Business in Bali and Indonesia](https://ilaglobalconsulting.com/guide-to-open-a-company-in-indonesia/): Expanding your business to Indonesia is an exciting prospect, but it requires meticulous planning and adherence to local regulations. This comprehensive guide explores the key steps to follow before to open a business and company in Indonesia, covering everything from market research and legal compliance to operational setup. Understanding the Indonesian Market in 2024 : Reasons Why You Should Open Company in Indonesia Indonesia offers a favorable environment for starting a business due to significant ease in the company registration procedure. The country allows foreign citizens and investors to own land, enhancing the attractiveness for international investments. With a rapidly growing middle class, Indonesia presents a thriving market with a strong economic outlook, being the largest economy in the Southeast Asian region. Annual GDP growth solidifies Indonesia’s position as a key economic player in the region, promising a fertile ground for new businesses. For investors interested in immigration, specialized legal assistance is crucial, and our Indonesian lawyers offer expert services tailored to navigating immigration laws and business establishment requirements. Should I register my business to open a company in Indonesia Absolutely. Registering your business in Indonesia is essential to comply with legal requirements and avoid harsh penalties such as fines or deportation. It also enhances your business’s credibility, building trust and unlocking access to financial services and potential local investment opportunities. Additionally, establishing a limited liability company (PT) protects your personal assets from business liabilities, offering financial security. Although the registration process can be challenging, professional assistance can help you stay compliant and simplify your entry into the Indonesian market. Registering a company in Indonesia has never been easier  Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. What Every Foreign Investor Should Know Before Open a Company in Indonesia The Indonesian government regulates foreign investments through the BKPM, ensuring a structured but accessible entry into the local market. Comprehensive legal procedures guide company registration in Indonesia, emphasizing the need for a Deed of Establishment and adherence to Indonesia’s Company Law and its recent amendments. A minimum authorized capital requirement and specific shareholder, director, and commissioner mandates underline the seriousness of business setup in Indonesia. The Indonesia Negative Investment List (DNI) plays a crucial role in determining foreign investment eligibility and ownership percentages across different sectors. Practical considerations for foreign directors, including work permits, TAX IDs, and recommendations for appointing local directors, facilitate smoother business operations and legal compliance.   Market Research To embark on a successful business venture in Indonesia, start with comprehensive market research. Understand the local business landscape, your target audience, and the existing competition. Evaluate the demand for your product or service in the Indonesian market to identify potential gaps and opportunities. Feasibility Study Conducting a feasibility study is crucial to assess the viability of your business in Indonesia. Consider factors such as regulatory requirements, cultural nuances, and economic conditions. This study will provide valuable insights to fine-tune your business strategy for the Indonesian market. Business Plan Developing a robust business plan is a cornerstone of any successful venture. Outline your business goals, target market, marketing strategy, financial projections, and operational plan. A well-structured business plan serves as a roadmap and is essential for securing approvals and investments. Legal Structure Choosing the right legal structure is a critical decision that impacts your business’s tax implications, ownership structure, and liability. Common legal structures in Indonesia include a Limited Liability Company (PT  PMA), a Representative Office (KPPA, KP3A, BUJKA). Despite Indonesia has several form of structure such as CV, PT PMDN, PT Perorangan, PT PMA and representative office are the only one that foreigners can open in Indonesia. The PT PMA authorizes foreigners to operate a business activity in relation with the business identification number registered during the incorporation of the company. Despite some revisions in 2021 on the negative list of investments in Indonesia, some activity sectors are not fully open to 100% foreign investment. The Representative office (RO) allows foreigners to open a structure to represent their company in Indonesia. However the RO cannot invoice clients and generate income in Indonesia. The RO can pay salaries and expenses by opening a bank account as well, but the mother company needs to invoice clients directly. Company name registration Before registering your business, ensure that your chosen business name is unique and complies with regulations. Perform a name clearance check and register it with the Ministry of Law and Human Rights to secure the necessary clearance and avoid potential legal issues. Also read: 12 Things To Know To Create A Company In Indonesia Legal Requirements and Permits Identify and obtain the necessary licenses and permits for your business. This may include a business license (Izin Usaha), environmental permits, and industry-specific permits. Compliance with local regulations is essential for a smooth and legal operation. Tax Registration Register for a Tax Identification Number (NPWP) with the Indonesian tax authorities. This is a mandatory step for both the company and the director or representative. Understanding and complying with local tax regulations is critical for your business’s financial health. Bank Account Opening Facilitate financial transactions by opening a local business bank account. Many banks offer multi-currency solutions with fast processing times. Online account opening options, such as those provided by Aspire, can streamline the process. Opening a company bank account is a crucial step in establishing a business presence in Indonesia, enabling financial transactions and operational functionality. A specific set of documents is required to successfully open a company bank account, underscoring the need for thorough preparation and understanding of the process. The process involves coordination with various Indonesian authorities and regulatory bodies, highlighting the bureaucratic nature of business operations in the country. Office Space and Infrastructure Find a
- [How to Register your Company in Bali and Jakarta](https://ilaglobalconsulting.com/your-essential-guide-to-register-company-bali-indonesia/): Ready for your company registration in Bali and Indonesia? Understand how to set up your PT PMA company, including choosing an efficient tax structure. Foreign investors can choose between a PT PMA or a Representative Office in Indonesia. The company registration process of a PT PMA takes between 5 days to 2 weeks. Types of companies for foreign investors in Bali and Jakarta Foreign investors choosing between PT PMA, Local PT Company, and Representative Office in Bali Foreign investors seeking to establish a presence in Bali must first understand the various business entities available to them. The decision on whether to set up as a PT PMA, Local PT Company, or Representative Office should align with your specific business plans and requirements, each offering distinct advantages and constraints. Delving into these legal entity options for conducting business is essential for understanding their individual characteristics and how they can serve different entrepreneurial needs. PT PMA: Foreign-owned Limited Liability Company To establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing), which is a type of limited liability company for foreign investors, it requires to have at least two shareholders. These shareholders can be individuals or legal entities, and there is no restriction on nationality, allowing 100% foreign ownership on some sectors. The capital of PT PMA  is set at IDR 10 billion, which is approximately USD 700,000, depending on the current exchange rate. The capital of a PT PMA is the liability of the shareholders. In other words, this capital is the amount the shareholders are exposed to. The PT PMA is the only type of company foreigners can legally open in Indonesia. Foreigners can work inside the company as directors, commissioners or employees. A PT PMA requires to have a resident director having a tax number (NPWP). Foreigners can become resident by applying for a KITAS in order to get this tax number. An investor can apply for an investor KITAS or working KITAS as company director. It is not mandatory for a company to use a local director. The director of the PT PMA is in charge to conduct and drive the company while the commissioner is representing the shareholders and ensure the company is compliant. Local PT Company (PT PMDN) The capital requirement for a PT PMDN is significantly lower than that of a PT PMA, with the minimum paid-up capital starting from IDR 50 million, depending on the size and scope of the business. However this form of company is not open to foreign investment. Despite some actors sell it as SPV, nominee shareholder is illegal in Indonesia and no contract can legally protect you. However, a foreigner can legally work as director of a local PT if the company increase the declared capital to 1 billion IDR. Representative office KP3A or KPPA A Bali-based Representative Office, also known as Kantor Perwakilan Perusahaan Asing (KPPA) in Indonesia, is a non-income generating extension of an overseas parent company. It is primarily established for the following purposes: Conducting in-depth market research and analysis to understand the local market dynamics and consumer preferences. Maintaining and fostering business relations with local and regional partners, clients, and distributors. Facilitating and coordinating promotional activities, such as participating in trade exhibitions and hosting business seminars, to enhance the visibility and brand presence of the parent company in the Indonesian market. Engaging in other non-commercial activities that support the interests of the parent company, such as overseeing product quality and standards, providing after-sales service, and gathering business intelligence. Setting up a Representative Office in Bali offers several strategic benefits for international companies: It allows for a low-risk entry point to explore the Indonesian market and assess business opportunities without the need for a large capital investment. The establishment procedure is relatively straightforward and faster Representative Offices are exempt from the requirement to submit an investment plan, which is typically mandatory for other types of business entities. They enjoy certain tax advantages, such as being exempt from corporate income tax, since they do not engage in direct sales or revenue-generating activities. However, it is crucial to note that Representative Offices are restricted in their scope and are not allowed to conduct direct sales or transactions that result in income. Their role is limited to preparatory and auxiliary activities that pave the way for the parent company’s future investment or business expansion in Indonesia. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Process to register a company in Bali or Jakarta The registration process takes 5 days to 2 weeks depending on the business sector. The process can be done online or on site. Define the business classification Find a company name Elaborate the best tax structure Register the business with a commercial address Establish the deed of the company Get a tax number (NPWP) Apply for the business identification number (NIB) Executing this process requires thoughtful preparation and attention. We will delve into these steps with greater detail and precision. Legal Requirements and documentation Registering a company in Bali involves meeting key legal requirements. For a foreign-owned PT PMA, necessary details must be provided including the company’s name, scope of business activities, and the official business address. Founders are expected to submit scans of their passports and specify the organizational framework concerning directors and shareholders. Businesses that potentially affect the environment have to comply with certain regulations designed for environmental protection by acquiring appropriate environmental licenses. Depending on what your business entails specifically, you may also be required to register your products, connect your company to the customs or get additional licenses such as an alcohol license or BPOM certification. Securing a Commercial Address or
- [Which Visa to Live or Invest in Bali?](https://ilaglobalconsulting.com/visa-to-live-or-invest-in-bali/): Considering a move to Bali? Understand the essentials of obtaining a visa to live in Bali for long-term living on this tropical island. This article demystifies visa categories like the B211A tourist visa for up to 180 days, various long-stay KITAS, and the Second Home Visa – each with different perks and requirements. Dive in as we navigate the requirements and application processes to help you begin your life in Bali. Key Takeaways Bali offers a variety of visa options for long-term stays and second homes, including tourist visas, multiple entry business visa type C and D, KITAS, and the new Second Home Visa, catering to tourists, investors, retirees, and remote workers. Obtaining a visa for business or investment in Bali requires complying with specific eligibility criteria and completing a series of procedural steps, including company registration and evidence of substantial investment in Indonesia. Integration into Balinese society involves more than securing a visa; it entails engaging with local governance units, respecting community customs and traditions, and fulfilling legal obligations such as tax reporting and visa cancellations upon departure. Exploring Visa Options for Long-Term Living in Bali To consider Bali as a potential second home, it’s essential to familiarize yourself with the different types of visas available for long-term residency. Options range from the ex- B211A tourist visa (qualified now as visa C2 and several KITAS categories to the new Second Home Visa. Starting with the popular choice among travelers, the ex-B211A (visa C2) tourist visa enables an initial visit for 60 days that can be extended twice, each time by another 60 days, totaling up to 180 days without having to exit Bali. But if you’re looking at staying beyond that duration, you might want to progress from a B211A tourist visa toward obtaining a KITAS. KITAS offers more prolonged stays varying between one and two years depending on its type—for instance. There are E28A Sponsored Investment KITAS or Dependent KITAS—both granting multiple entry benefits. Those who are over sixty may take advantage of the Retirement KITAS designed specifically for them which allows yearly renewal after living in Bali initially for twelve months. Unveiled towards the end of 2022 is yet another lucrative path—the Second Home Visa—which has caught attention, particularly amongst retirees, but also caters professionals keen on settling down in Bali longer term—it extends up to five years residence and provides provisions enabling family members’ sponsorship. Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. Visa options for investment in Bali and Indonesia Investor KITAS (up to 2 years) For individuals intending to make investments in Bali or other regions of Indonesia, the Investor KITAS E28A presents an excellent option. This type of visa remains effective for a period of two years and serves as an entry point into Indonesia’s realm of possibilities. To qualify, one must demonstrate ownership stakes amounting to a minimum value of Rp10,000,000,000.00 within a guarantor firm that is recorded with either the Ministry of Investment or the Indonesian Investment Coordinating Board. Securing an Investor KITAS entails multiple stages which consist primarily of: Registering your company Securing an eVisa Completing onshore registration through Indonesian immigration authorities The final step is obtaining your actual KITAS. The passport validity has to be more than 6 months Ordinarily, this procedure takes approximately 3 weeks to 1.5 months from start to finish when public holidays are not considered in the timeframe. Pre-investment visa (up to 2 years) On another note, for those who are at the preparatory stage looking forward to investing in Indonesia there’s provision for them. They may opt for what’s known as pre-investment visas having same longevity tenure that permits engaging in business-related activities such preparations including but not limited ground inspections all through appraisals concerning feasibility even extending invitations relatives friends alongside leisure travels. The passport validity has to be more than 6 months before entering the country. The advantage of this visa is that the Indonesian government doesn’t require to establish a company. The immigration website qualify this visa as a visa to prepare investment in Indonesia. No medical insurance is required. Business visa option for travelers in Bali and remote workers Single entry Business visa (Visa C) Bali presents an idyllic setting for professionals whose work extends beyond geographical limits or for those who operate with a laptop as their mobile office. For these global workers and digital nomads, Bali’s business visa offerings provide adaptable arrangements. Specifically, the Business Visa C2 serves as a single entry visa that remains valid for 60 days and is extendable to up to 180 days. For applicant who plan to stay longer, there are several options such as the multiple entry visa or remote worker visa below. Passport valid for at least 6 (six) months (for holders of travel documents other than passports such as emergency passports, documents of identity, etc. must be valid for 12 months). Personal bank statement with minimum amount USD $2000 or equivalent the last 3 months period (including name, date of period, and balance account).. Latest color photograph. Information, invitations, or correspondence from government agencies or private institutions that Explain the relationship with the Applicant. Read Also: E33G: Remote Worker Visa (Digital Nomad) for Bali Multiple entry visa business visa (up to 5 years) Conversely, individuals who necessitate recurrent travel into and out of Indonesia can
- [Best visa for Remote worker visa and Digital Nomad in Bali](https://ilaglobalconsulting.com/digital-nomad-visa-bali-e33g/): In 2024, Indonesia rolled out the Digital Remote Worker Visa (E33G), which gives digital nomads the ability to legally live and work from Bali and soak up the island’s lifestyle. The new visa also gives remote workers more freedom to make a long-term home in Indonesia without breaking immigration laws. We outline the main visa options for remote workers and digital nomads in Bali below, which you should consider based on your life and work situation. Digital Nomad Visa for Bali Before making your travel plans for Bali, it’s crucial to grasp the visa application procedures. A variety of visa options are available in Bali. Upon landing, you can secure a 30-day Visa on Arrival for a short term stay. This Visa on Arrival is extendable up to 60 days. E33G Remote worker Visa D12 Multiple entry business Visa C2 Single entry Visa For an extended visit up to six months, Digital nomads can look at the C2 Single entry visa for a visit up to 6 months, while people looking for a multiple entry solution will look at the D12 Multiple entry business visa. For remote worker looking to have a KITAS and live in Indonesia the Digital Nomad Visa is the most suitable option. Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. Bali Digital Nomad Visa (Remote Worker Visa E33G) Eligible remote workers are granted the chance to reside and work in Bali with recognized status by acquiring the E33G remote worker visa (KITAS for Bali Digital Nomad Visa), which allows for a 1-year Limited stay permit (KITAS). Requirements for Bali Digital Nomad Visa Passport  with a validity of 6 months minimum. Personal bank statement with a minimum amount of 2000 USD A recent picture of the applicant Bank account that proves income in the form of salary or income of 60 000 USD per year; Employment contract with a company established outside the Indonesian Territory Activities you can do with a Bali Remote Worker Visa Carry out assignments from overseas companies. Bring eligible family to live in Indonesia. Travel to and from Indonesia. Conducting activities related to tourism, and visiting friends or family How to apply for the remote worker visa ILA can assist you in preparing the different paperwork and getting the authorization to work from Indonesia and Bali as a digital Nomad. The process takes 5 days to 2 weeks. D2 Multiple Entry Business Visa (1 or 5 years) People travelling in and out frequently to Indonesia without living here will probably look into the multiple entry business visa D2. Requirements for D2 Multiple Entry Business Visa Passport with a validity of 6 months minimum. Personal bank statement with the minimum amount of 2000 USD or equivalent Recent picture of the applicant Letter from a sponsor (contact us for more information) Activities allowed with the D2 Multiple entry business visa Carry out business, meetings, or purchase of goods including Discuss, negotiate, and/or sign business contracts. Activities related to tourism, and visiting friends or family How to apply for the D2 Multiple entry business visa ILA can assist you to apply to prepare the different paperwork and get the authorization to come to Indonesia and conduct business activities. C2 – B211A Single Entry Business Visa (1, 2 or 5 years) For digital nomad willing to stay in Bali 6 months and looking for a cheaper option can look a the single entry business visa. Document Requirement Passport with a validity of 6 months minimum. Personal bank statement with a minimum amount of 2000 USD A recent picture of the applicant Invitation letter from Sponsor Activities you can do with a B211A – C2 You can carry out business, meetings, or purchase of goods including but not limited to checking goods at the office, factory, or production site of goods. You can negotiate, and/or sign business contracts. Conducting activities related to tourism, and visiting friends or family. How to apply for the B211A – C2 Single entry business visa ILA can assist you to apply to prepare the different paperwork and get the authorization to come to Indonesia and conduct business activities Read also: Employment Contracts in Indonesia: A Comprehensive Overview Frequently Asked Questions Is Bali good for digital nomads? Absolutely, Bali is an excellent choice for digital nomads due to its perfect combination of paradise living and connectivity. Does Bali offer digital nomad visa? Yes. Indonesia has a digital nomad visa called the E33G remote worker visa. Applicant can get a KITAS with this visa. Where do most nomads live in Bali? In Bali, nomads predominantly reside in the areas of Canggu and Ubud, where they are drawn to the serene ambience, an array of cultural experiences and a thriving tourism sector. The cost of living in Bali can be quite affordable, with monthly expenses potentially being as low as $520. Do you need a visa to work remotely in Bali? Indeed, as a digital nomad, it is permissible to legally work remotely from Bali with a remote worker visa for a period of up to 1 year. You also have other option such as the business or tourist or multiple entry business visa. Why is Bali a popular destination for digital nomads? Bali has become a favored spot for digital nomads, attracting them with its cost-effective living, robust high-speed internet connectivity, dynamic
- [Things to know before investing in a property in Bali](https://ilaglobalconsulting.com/what-do-you-need-to-know-before-investing-in-a-property-in-bali/): Are you into property investment in Bali? Everyone who has been to Bali and Indonesia has in mind how to invest in a property in Bali. How to invest in the property market in Bali and Indonesia? There are several ways to enter the market for property investment in Bali (comprehensive guide for investors before investing in property, especially in Bali). The market offers different possibilities for off-plan projects, apartments, villas, and hotel rooms. The type of product depends on the investor’s profile and budget. While a new investor will prefer to invest in an off-plan villa, other investors will prefer to buy land and develop their villa themself for a higher Return on Investment. Off-plan projects offer payment and allow smaller budgets to enter the market. However, we recommend paying attention to the section of the project and having a strong contract with the developer by checking its license. Recently, some developers have been unable to finish their projects. Despite the type of project, the property investment in Bali needs to be approached cautiously: Define the best legal structure before your property investment in Bali, Lombok or the rest of Indonesia Choose the appropriate location Perform due diligence on land, building permits, contractors, developers Never pay a deposit to a seller without a contract reviewed by a lawyer Choose an independent legal or notary Optimize your tax structure Apply for license Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. A stable market with high-return investment It is not unusual to see a 15% return on investment per year from the short-term rental, while other markets usually offer 5 to 10%. Those numbers obviously depend on the location and your tax exposure. The stability of Bali offers an excellent occupancy above 50% with 80% in well-known locations such as Canggu and Seminyak. Other areas, such as Nusa Dua or Amed, have more difficulty reaching this threshold. You can often recoup your entire investment money in 6 years. This means you can expect to purchase additional property quickly, and the levels of passive income can be off the scale if you invest for long periods of time. Digital nomads, in particular, often eschew a permanent residence in favour of owning or buying investment properties in places like Bali. A market entry cost is lower than in the mature market Bali and Indonesia’s market has not reached their maturity and still offer lower entry prices than buying a property in Australia or Europe. The gap with western, Singapore, China or Tokyo is still important. It is feasible to enter the market with 150,000 USD or less and have a property to rent out on Airbnb or booking.com. Some actors nowadays provide fractional investment where investors can even buy a part of the property with only 25,000 USD. Out of the property to accommodate tourists in the form of villas or hotels, the entertainment industry is also following the trend. Restaurants, beach clubs, and nightclubs are also developing and accommodating different and long-term investors. Read also: Bali Property Market Trend 2023 – 2024 What are the limits, or what should you be cautious about before investing in property? 1. Property Regulations The development has not always been done in line with the regulations. Unfortunately, some agents or sellers have contributed to offering some properties in areas that are, for example, not able to get a proper building permit and, as a consequence, a proper license to operate on Airbnb or other platforms legally. Buyers are exposed to sanctions the day the government is going to reinforce the law. Indeed during this period, the investor can take its return on investment but it might happen before. 2. Tax Required The government is indeed responsible for not reinforcing the law, but developers also fail to inform clients about the regulation. Tax is the perfect example of this omission. Taxation is an important factor that can affect the investment. Having proper tax planning on this is crucial. 3. Property Ownership for Foreigners Foreigners can own properties in Bali and Indonesia under a company. This allows foreigners to acquire the property and have the property under the company name. The advantage is that the seller has no rights on the property at all after the transaction. The other advantage is also to make the income legit. The advantage is also in terms of tax. The most common practice has been for years to lease land for a certain period of time. This form of investment can reduce the capital needed to enter the market. A lease at 150,000 USD for 20 years may let you get a return on your investment. 4. Financing and Mortgage As foreigners, it might be difficult to get a loan in Indonesia. Most of the time, the payment of properties requires an upfront payment. Some banks might be able to discuss how to finance the investment of a second property if you already own the first property. As a reminder, having a leasehold agreement is not an ownership. It is a long-term rent, and as a consideration, the bank will not lend money to the buyer or be able to have a mortgage on it. First-time buyers are probably recommended to enter the market by trying to get a loan in their home country or purchase a freehold property. 5. Building Permit and Design Buildings in Indonesia require a building permit (residential, commercial) divided into 2 documents called PBG and SLF. Indonesia does not recognise architects who do not have a license to apply for a building permit in Indonesia. It is possible to hire an architect, but this one will need to collaborate with a local architect.
- [Bali Property Market trend 2023 - 2024](https://ilaglobalconsulting.com/property-market-trend-bali-2023-2024/): The Bali property market trends is undergoing notable shifts as we move through 2023 and into 2024. With occupancy rates stabilizing around 59% and slight increases in property values, the market reflects both opportunities and challenges. Factors such as rising entries into Bali and evolving investor strategies are shaping the landscape. However, questions remain about whether current and upcoming developments will meet future demand. Understanding market dynamics, regulatory changes, and regional alternatives like Lombok and Phuket is essential for navigating investment decisions effectively. How will the Bali property market trends go in 2024? The year has started, and we still hear a few different approaches to looking at the property market. Some real estate agents try to push other destinations, but we have also promoted other areas such as Sumba. But how is this market going now? After reviewing the number for 2023, the occupancy rate for 2023 and the beginning of 2024 is still under the occupancy rate of 2022. The value in USD is slightly higher. Two main factors: However, the revenue at the beginning of 2024 seems to be the same as in 2022. It seems that the number of entries did not follow the property investment done in the last few months. The average of the occupancy rate is stabilising at 59%. Bali seems to have reached a point in July or August 2023. The question is now to know if the person who has invested in 2023 and is currently building will be covered in 2024. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Lombok an alternative? While some are trying to place Lombok on the master plan, we can notice that the occupancy rate was similar to Bali, but with a very low occupancy on average of around 30%. Lombok seems not for now to be the expected market that some promoters try to promise. However for investors with a premium location and a good strategy the place can be interesting to look at. The election in a few months will determine the future of the next few years. While the country is taking a different direction, social factors have a strong influence on how and where people want to spend their money and vacation. Is Thailand better? By continuing our analysis we started to take a look at the numbers in Phuket, Thailand. Phuket seems to have a higher occupancy rate at its peak but is more affected by the variability of the seasons. Phuket has had a lot of construction in the last few months, and the occupancy rate seems also affected by the number of constructions increasing faster than the demand. Where to invest? Bali and Phuket or Lombok will see a lot of new construction finalized in the next few months following the purchase or lease of the last few months. The question is to now identify if the demand will follow or not. In a long time, there is no doubt that this demand will continue. Spain had this issue in the past and Asia has a strong domestic market to come. However, the incertitude is never good for an investor. Politics have to continue to improve infrastructure and send good signals to travelers willing to invest and occupy those properties. A few weeks back, I remember having a discussion about investing in Bali and France. An interesting fact is that Paris has a higher occupancy rate than Bali, despite what we could expect. With 75% compared to 59% in Bali, Paris seems a place where stability of the tourism industry is for example guaranteeing a certain level of revenue to the investor. Indonesia has a strong potential. The location of the investment is key. We do trust that it is the right moment to invest, but knowing how to do it is the key Also read: How to Buy a Property in Bali?
- [Organise an Event in Indonesia](https://ilaglobalconsulting.com/organise-an-event-retreat-indonesia/): Foreign companies or foreigners willing to organize events in Indonesia must comply with the regulations. Organizing a concert with a DJ or organizing a retreat in Bali and the rest of Indonesia requires meeting some requirements. As with other activities, organising events is considered a business activity generating revenue. It is important as a first step to understand if the foreigner is coming to Indonesia to participate in an event or is coming to Indonesia to organize the event. PARTICIPATING IN AN EVENT Here’s the text with the keyword “organize events in Indonesia” inserted: Joining a retreat or a concert as a member of the event is different from organizing events in Indonesia. If a DJ is coming to Indonesia, this person will need a proper visa from a sponsor authorizing the person to join the event. The person in charge of declaring the revenue will be the company, and this company is responsible for paying the proper insurance. For example, immigration defines the visa for music performers as performing music performances. DJs visiting Bali and the rest of Indonesia have to apply. The Indonesian government also requires other speakers or people joining an event to have a special visa for the following. “Carry out activities related to speakers, lecturers, presenters, or public figures but not in an employment relationship with parties in Indonesia.” Conducting activities on the Indonesian territory and generating revenue from this activity is considered work on the territory and requires, as a consequence, the proper associated visa. The website of the Indonesian government is https://evisa.imigrasi.go.id/  allows foreigners to apply for the rights visa. Yoga teachers and sports consultants must comply with the regulation even if the trip is below 1 week. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. ORGANIZING EVENTS IN INDONESIA Foreigners willing to organize events in Indonesia are under the scope of a business activity done in Indonesian territory. As a consequence, the organizer needs to have a proper licence. Option 1: Having a partnership with an organizer in Indonesia If foreigners are willing to organize a single event or retreat in Bali and the rest of Indonesia, the fastest and cheapest solution might be to partner with an existing company here that will sponsor the event and the foreign workers during the event. The organizer will be responsible for the insurance, paying the expenses on your behalf, and legally having the licence to host or organize the event. Option 2: Setting your own event organizer company to organize If you plan to organize more than one event, then the best solution is probably to set up your own event company in Indonesia to organize your retreat, concert, or other form of event. Here’s the text with the keyword “Event planning Indonesia” inserted: The company can have as shareholders individuals or corporations willing to organize the event. The setup usually takes a few days to a few weeks. The company will apply for a business licence related to event planning in Indonesia. Once the company has been established, the Indonesian government will provide a tax number called NPWP. This tax number is necessary to perform commercial transactions as an entity in Indonesia. As a third step, the company can sponsor work permits for foreign workers or hire local workers for the events. Establishing a company also has consequences, such as reporting the monthly tax. Before establishing a company, it is essential to consider your business plan and study which solution is the most suitable for your project. Visa agents and other market entry companies might push for a solution or another. We recommend first to study your objectives before going to a solution. Having your company imply to maintain a company and tax, and having a simple visa doesn’t mean that your visa makes you legal to organize the event. Contact us if you want to know more and need advice on how to study your plan. Check our blog for useful knowledge for your business.
- [How to get a building permit in Indonesia?](https://ilaglobalconsulting.com/how-to-get-a-building-permit-in-indonesia/): When investors buy a property for a business or personal use, the building permit in Bali and the rest of Indonesia becomes a crucial part for some businesses. Restaurant Hotel Manufacture Residential and Airbnb Retail shop Etc The above businesses need to get what is called a building permit. The building permit in Indonesia is one condition to be able to apply for some licence and run a business. In addition, the building permit can be applied under some conditions if the zoning of the land is in line with the purpose of the business. What are the requirements and steps to get a building permit? Indonesia has a law and regulations for buildings authorized to be built. Namely Building Construction Permits (IMB) have been superseded by a Building Construction Approvals (PBG) by the Indonesian government. PBG is a licence to construct new buildings or change the purpose and technicality of existing structures. This is mentioned in Article 1, paragraph 17 of Government Regulation Number 16 of 2021 about Implementing Regulations of Buildings Law Number 28 of 2002 (Regulation 16/2021). IMB versus PBG/SLF While IMB was a permission that the owner had to get before or during the construction of a building, PBG is a licensing requirement that governs how buildings must be constructed. The concerned technical standards include building planning and design, building implementation and supervision, and building utilisation. Apart from that, a Certificate of Worthiness (Sertifikat Laik Fungsi/SLF) is a certificate the government grants to the owner of a building or its representative. It is a statement that the building is functionally fit for purpose and can be used properly according to plan. The current global trend demands better public services in the digital era and it is a challenge for the bureaucracy to adapt to a rapidly changing external environment. The Building Management Information System (SIMBG) is one of the licensing services that offer digital services. It is very common in some areas to hear investors getting a SLF before a building permit (PBG). TO BE CLEAR the law reinforces that you need to apply for a permit before the SLF and get your IMB. Some practices to get the SLF before the PBG are not correct and recommended. Some control can be done and performed and conducted to the demolition of your building. Where to apply? The regulation 16/2021 stipulates that the application of PBG and SLF can be made through the Building Management Information System (Sistem Informasi Manajemen Bangunan Gedung/SIMBG), which is organised by the Ministry of Public Work and Public Housing. Besides Processing PBG and SLG, SIMBG is also used to apply for other building-related permits including: Building Ownership Certificates (Surat Bukti Kepemilikan Bangunan Gedung/SBKBG); Technical Demolition Plan (Rencana Teknis Pembongkaran Bangunan/RTB); Other building data/information. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. How much building permit in Indonesia cost? The cost of the building permit has to be separated in 2 aspects: New building Building built more than 2 years ago While the building built more than 2 years ago just need an SLF, the new construction needs to apply for the PBG before starting to build and also need to follow the new procedures. The cost of the building permit is variable and depends on the size of the building and the service fee of the agent applying for it. The processes to obtain the PBG can take several months and have a few back and forth between the government and the architect to revise the original plan. To limit costs, consult a local architect to ensure the design and construction meet requirements related to land occupancy, roof type, and other regulations. For a villa with two or three bedrooms, the PBG cost will add a few thousand dollars, so include it in your construction budget to avoid unexpected expenses. The official retribution of 50,000 IDR to 70,000 IDR is only a small part of the total cost, as additional permits from Dinas must also be obtained. The SLF costs less than the PBG, provided the PBG has already been approved. However, an SLF for a new building without a PBG is illegal and cannot be legally issued. Building Construction Approvals (PBG – Building permit in Indonesia) A PBG can only be issued if the building technical standards determined by the Central Government or the relevant regional government are met. For this purpose, Regulation 16/2021 provides a detailed list of the technical requirements which must be satisfied which includes those that apply to the following. Requirements the planning and design of buildings; the construction and supervision of buildings; the utilization of buildings; the demolition of buildings; the requirements apply to cultural heritage buildings (Bangunan Gedung Cagar Budaya or BGCB); the requirements apply to buildings for special functions (Bangunan Gedung Fungsi Khusus or BGFK); the requirements apply to green buildings (Bangunan Gedung Hijau or BGH); the requirements apply to state buildings (Bangunan Gedung Negara or BGN); the documentary requirements; and the requirements apply to parties involved in the construction of a building. For the construction of a building, the building owners must engage a group of building service providers, including a construction planning services provider (penyedia jasa perencana konstruksi), a construction services provider (penyedia jasa pelaksana konstruksi), and a supervision services provider (penyedia jasa pengawasan) or construction management services provider before commencing construction.The construction planner services provider must prepare and submit a technical plan to the authorities through the SIMBG when applying for a PBG. Upon receipt of the application Authorities will assess the architectural plan documents and the structural, mechanical, electrical, and plumbing plan documents.If the technical documents meet all requirements, the relevant technical agency in charge
- [Medical Tourism And Investments Opportunities In Bali And Indonesia](https://ilaglobalconsulting.com/indonesia-medical-tourism-and-investments-guide/): The global medical tourism market is projected to reach USD 1.4 trillion by 2027, showcasing the growing demand for cost-effective, high-quality healthcare abroad. This trend is fueled by rising healthcare costs in developed nations, coupled with increasing awareness of affordable and accessible medical options in destinations like Indonesia. Forget expensive Western clinics; Indonesia has emerged as a medical tourism paradise, offering top-notch care at a fraction of the cost, stunning landscapes, and investment opportunities ripe for the picking. Imagine this: Combining a rejuvenating spa treatment in Bali with a cutting-edge medical procedure in Jakarta, all while basking in the turquoise waters of the archipelago. This is the reality Indonesia offers, a booming market projected to reach USD 2.2 billion by 2028. Why Choose Indonesia? Cost-effectiveness: Save up to 70% compared to Western nations, making quality healthcare accessible to a wider audience. High-quality care: Modern hospitals with advanced technology and skilled professionals ensure exceptional medical services. Holistic approach: From traditional Balinese therapies to modern wellness retreats, Indonesia caters to your complete well-being. Diverse offerings: cosmetic surgery, dental care, fertility treatments, and more – find the perfect treatment for your needs. Unforgettable experience: Combine medical care with breathtaking landscapes, vibrant culture, and delicious cuisine. Start your investment journey in Indonesia the right way With so many diverse investment opportunities in Indonesia, you need to make sure you’ve got the right setup to do business here.  Get help from our team of experts to register your company, navigate the real estate market and secure your visa and stay permit. Schedule a free call with us today to plan your next steps with ILA. Investment Opportunities Await The medical tourism boom isn’t just for patients; it’s a gold mine for investors too. Here’s where you can tap into this lucrative landscape: Hospital development and management: Build new facilities or invest in existing ones, particularly in underserved regions. Medical equipment and supplies: Provide high-quality equipment and consumables to fuel the industry’s growth. Wellness and spa tourism: Develop spa resorts and wellness retreats that blend traditional and modern therapies. Pharmaceuticals and biotechnology: Invest in research and development of innovative healthcare solutions for the Indonesian market. Digital health: Implement telemedicine platforms and other digital solutions to improve healthcare access and affordability. Government Support Paves the Way Indonesia is actively backing medical tourism and healthcare infrastructure development through: Medical tourism special economic zones (SEZs): Enjoy tax breaks and other incentives for your investments. Streamlined healthcare regulations: Ensure patient safety and quality care standards. Marketing initiatives: Global campaigns are raising awareness of Indonesia’s medical tourism offerings. Challenges and the Road Ahead Like any burgeoning market, Indonesia faces hurdles: Language barriers: English proficiency among healthcare professionals needs improvement. Uneven infrastructure: Access to quality healthcare varies across regions. Raising global awareness: Continued marketing efforts are crucial to compete with established destinations. However, Indonesia is committed to overcoming these challenges and establishing itself as a leading medical tourism and investment hub. By addressing these issues and capitalising on its strengths, Indonesia can attract patients and investors alike, creating a win-win situation for all. Exploring Investment Opportunities in Bali’s Thriving Medical Industry The geographical location of Bali is a great opportunity for investors looking to invest in Medical tourism. For Australian looking to organize medical or holistic holidays, it is cheaper to book a flight to Bali and spend a week in Bali than to have an operation or full aesthetic treatment in Australia. Thailand used to be a destination due to the lack of investment in Bali on this matter. The last few years several actors emerged on the island making Bali a hub for Australian but also other countries such as South Korea, Singapore. Actors starting to look at Indonesia to operate are coming from divers countries with a demand increasing from Malaysia. Here are the business opportunities to not miss and open to foreign investment: Aesthetic Clinic Health and Wellness center Rehabilitation center Detox center (alcohol for example) Medical Services in Bali Healthcare services in Bali are diverse and comprehensive, catering to both locals and tourists. The island features clinics and hospitals that offer a variety of services. Its like general medical consultations, dental care, and specialized treatments. With facilities conveniently distributed throughout Bali, quality healthcare is easily accessible to everyone. In addition to standard medical care, many clinics in Bali also provide alternative and holistic treatments, reflecting the island’s wellness culture. Services such as traditional Balinese healing, acupuncture, and wellness retreats are increasingly popular among visitors seeking a more integrated approach to health. Sanur’s Rise as a Bali Medical Tourism Hub:  Sanur’s journey towards becoming a medical tourism hub is driven by several factors: Government initiative: The Indonesian government has designated Sanur as a Special Economic Zone (SEZ) for health and wellness tourism, offering tax breaks and other incentives to attract investors and medical facilities. World-class healthcare infrastructure: The Bali International Hospital, a state-of-the-art facility scheduled to open in early 2024, will further elevate Sanur’s medical tourism offerings. Holistic approach: Sanur goes beyond conventional medicine, integrating traditional Balinese therapies, wellness retreats, and stunning natural beauty to promote holistic well-being. Accessibility: Direct flights to Bali from major cities worldwide make Sanur a convenient and attractive destination for medical tourists. Scale and Scope: 50,000 square meters of covered space: BIH will be a sprawling medical facility, equipped to handle diverse healthcare needs. 260 wards and 35 intensive care units: This capacity ensures ample resources to cater to a significant patient volume. 8 operating rooms and 4 Cath labs: Advanced technology and dedicated surgical facilities guarantee high-quality medical procedures. 5 Centers of Excellence (COE): BIH will specialize in cardiology, oncology, neurology, gastroentero-hepatology, and orthopedics, offering comprehensive care in critical areas. Economic Impact : BIH is expected to significantly contribute to Sanur and Bali’s economy: Job creation: Up to 2,000 jobs are expected to be created, boosting local employment and economic activity. Increased tourism revenue: Medical tourists will bring additional spending to the region, benefiting hotels, restaurants, and other businesses. Infrastructure development:
- [How to Open a Dream Restaurant in Bali](https://ilaglobalconsulting.com/your-guide-to-opening-a-dream-restaurant-in-bali-a-step-by-step-journey/): Bali, a jewel in Indonesia’s crown, isn’t just a paradise for tourists but a vibrant canvas for aspiring restaurateurs. From the rice terraces of Ubud to the vibrant Seminyak and Canggu, there is a place for any kind of culinary experience. The development of the expat community also brings a recurring clientele that each restaurant can count on. In this article, we’ll walk you through the exhilarating process of opening your own restaurant in Bali. Understanding Bali’s Market Target Audience Your target demographic could be tourists seeking authentic Balinese experiences, expats looking for a taste of home, or locals interested in international cuisine. Having a structured business plan to identify your target audience is crucial. You do not target the same audience in Uluwatu, Canggu or in Ubud. While you may offer some vegan cuisine in Ubud and Uluwatu, Seminyak might offer more fine dining restaurants. Competitive Analysis Study existing restaurants in Bali. Identify what works and where there’s a gap in the market. Whether it’s a vegan eatery, a seafood hotspot, or a fusion kitchen, find your niche. Some areas such as Uluwatu, Bingin are exploding in popularity and offers. Lombok or Nusa Dua which are more seasonal also requires a specific approach since the target audience might be variable during each season. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Legal and Regulatory Requirements Business Registration (PT PMA) In Indonesia, business registration is crucial. Start by registering your business with the Indonesian government. This process will involve choosing a legal structure suitable for foreign investors, if applicable. Foreigners can open a company with a 100% foreign capital investment and do not need an Indonesian partner. The type of legal structure is called PT PMA. PT PMA is a kind of Limited Liability Company. The process takes 3 days to 1.5 weeks to open the company in Bali or the rest of Indonesia. As a shareholder you can also be the director of the restaurant and work as the director. However it is important to note that the director of the company cannot work as the Chef of the restaurant. Once the company is open the restaurant has to apply for additional licences. Licences and Permits You’ll need several licences, including a general business licence (SIUP), a tourism business licence if you’re catering to tourists (TDP), and potentially a liquor licence. Getting an alcohol licence takes several weeks and inspection. We do not recommend restaurants and bars to serve alcohol in Bali or the rest of Indonesia without the permit approved. Location and Logistics Choosing the Right Location Select a location based on your target audience, budget, and business concept. You need to consider factors like traffic, accessibility, and proximity to competitors. As we discussed previously, the location can totally change your approach, price, menu, clientele and affect sensibly your return on investment (ROI) of your restaurant. Lease Agreements or Freehold – Do a due diligence Companies can buy land or buildings in Indonesia. You can own the building and the land. It is important to perform due diligence on the land or building you want to purchase. The zoning of the land is important to operate your business and if you want to be able to sell alcohol as well and get the proper licences. In Bali, property lease agreements are unique, often requiring upfront payment for several years. You can negotiate terms that protect your business interests. Each terms of the contract are important as they determine what you can do with the property. Kitchen and Dining Setup Your kitchen is the heart of your restaurant. Invest in quality equipment and design a layout that maximises efficiency. Similarly, your dining area should reflect your restaurant’s theme and provide a comfortable ambiance. Bali offers diverse suppliers. The choice of your menu will affect your logistics and how you can manage your supply chain. Indonesia requires some products to be registered at the BPOM (Indonesian FDA) and specially starts to require Hallal certification. Registering your product in Indonesia takes some time and checking if your product is already registered or can be registered is an important step of the process. We can assist you to cover these important steps. Restaurants may need to import some kitchen equipment. Some of those equipment may require SNI (certification) before being able to be used and distributed in Indonesia. Staffing and Management Hiring Staff A great and trustable team is vital. Indonesia has an exceptional experience in terms of tourism. You can hire locally as much as possible, respecting the Indonesian and balinese culture and employment laws. It can be difficult for experts to navigate the Indonesian working culture and law. Having a professional consultant such as HR talents to drafting the first contract for you can save hassle in the future if issues appear with your employees. Indonesia has short term and indefinite contracts terms. The notice period has to be clearly defined and how to stop the contract. You can refer to our article here. Training Invest in staff training, especially if you’re introducing a new cuisine or service style. Well-trained staff contribute significantly to the dining experience and will help in building a loyal customer base. There are some companies in Bali that have developed training programs to empower great service with some international standards. Management Practices For foreigners coming to Indonesia, having a clear standard operating procedure is important. Effective management is key to a successful restaurant. Implement systems for inventory management, quality control, and customer feedback. Embrace technology for reservations and order management to streamline operations. Governments have now implemented some systems to connect your
- [How can a foreigner run a Hotel or a villa on Airbnb in Bali and Indonesia?](https://ilaglobalconsulting.com/run-a-airbnb-villa-in-bali/): Bali has been, since the end of the COVID-19 pandemic, attracting foreigners and Indonesians looking for property investment and opportunities, particularly in relation to the villa license Bali. When it comes to purchasing property, the answer is clear: Yes, a foreigner can buy a villa in Indonesia. However, if the question is whether a foreigner can operate a villa on Airbnb in Bali and Indonesia, especially under the villa license Bali, the answer requires a more detailed explanation. Officially, foreigners are not permitted to run a short-term rental business in Indonesia under their own name. This restriction is not unique to Indonesia – many countries require a tax ID for locals to run a business. Misinformation suggesting otherwise is not only misleading but can lead to legal complications. Our experience as an investment and legal advisory company includes assisting clients who have encountered issues from operating without the proper licence. Hotel Licence The Indonesian regulatory landscape is dynamic, making it challenging for investors to understand the property market in Bali and Indonesia. Foreigners are allowed to operate short-term rentals under a hotel licence, provided they have invested in a company that can hold such a licence. However, Indonesia permits foreign ownership and operation of a hotel only if the land area exceeds 4,000 square meters. The licence will be classified as either Hotel Melati or Hotel Bintang. For smaller land sizes, Indonesian companies without foreign capital are eligible for these licences. For properties with less than 4,000 square meters, alternative solutions exist, and we’re available to discuss these options. Obtaining the licence under the company is one part of the process. Once the company has been established and the licence applied, the company has to follow a process of verification and inspection and apply for additional licence regarding the following points: Safety training Standard operating procedures Proof of laboratory test results resulting from Compliance with Environmental Health Quality Standards (SBMKL) Location and Building Plans of Business Places Business Licensing from the Ministry of Tourism and Creative Economy Certificate of capacity building/training for accommodation cleaners (cleaning service) Food handler training certificate related to food hygiene and sanitation As a foreigner or investor you often hear ” It is OK, it will be fine, no problem”. This kind of affirmation is usually a warning for investors. Indonesia has rules and regulations. You are fine until the regulation changes or somebody starts to make some report. As an investor having professional advice on how to set up a hotel in Indonesia is crucial. Registering a company in Indonesia has never been easier Setting up a business abroad can be challenging with so many documents, laws and regulations to consider. Luckily, the process will be a breeze, and we’ll give you expert advice on which business structure and setup will fit your needs.  Reach out to the ILA team today to set up a free consultation or read more about the company registration process. Pondok Wisata and Vila License Pondok Wisata This licence is normally issued for business owners living on the property and looking to get extra revenue from their place. There is a limitation on the number of rooms. The Indonesian law defines this licence as businesses providing lodging services to the public with daily payments made by individuals using residential buildings occupied by the owner and partially used for rental by providing opportunities for tourists to interact in the owner’s daily life. Per definition this licence is not for foreigners and cannot be applied by a foreigner or an Indonesian company with 100% ownership. As the hotel licence owners have to respect some criteria in terms of Hygiene and safety. If Pondok Wisata is not the most appropriate licence, which licence foreigners can legally  use to rent their villa on Airbnb? Vila License The regulation defines the villa license Bali as businesses providing lodging services to the public, which are private houses. In this arrangement, the tourists use the facilities, and the owners manage the property themselves. Moreover, the interesting point of this licence is that the owner itself is authorised to manage and rent the facility. Since the ownership of a villa or property can be a PT PMA (foreign-owned company), the licence holder has the right to generate income with this licence. Airbnb and other platerform are increasingly checking and reporting revenue, asking for licensing as well. It is forbidden for local and foreigners to rent out a property or villa in Indonesia without a business licence. There are some possibility to delegate a licence to a company but in any case a foreign company or a property management company can get a direct revenue of a property without processing the licence. As a foreigner you would be exposed to important consequences. It is important to always check which income is promised to you. Now that we know which licence is necessary, how to get the licence? How to open a company in Indonesia? Setting up a company in Indonesia In general, foreign investors can set up a company in Indonesia and own land with it. Specifically, in the context of the villa license in Bali, by owning land, we define full ownership and not leasehold. Additionally, it is important to remember that transferring a lease is illegal and not recognized by Indonesian law. Furthermore, a lease is essentially a rent for a longer period, and the lessee has no rights over the property except for its use, and cannot sublease something the lessee doesn’t own. Companies can own a freehold with a building on it or not building on it. The purpose of this article is not to provide all the steps. We do have an article on the company setup here. However setting up a company in Indonesia is fast 3 days to 1 week and allow you to: Own a property Having the proper licence (Hotel, Real Estate, Property management) and make your income legit Optimise your tax (check our article on tax) Avoid your
- [Is Bali a Bubble About to Explode?](https://ilaglobalconsulting.com/trend-property-market-bali/): In the past few months, I have engaged in lengthy discussions with clients, investors, and professionals, all inquiring about whether the Bali property market is on the verge of an explosive bubble. Assessing this appreciation is challenging, as every market is difficult to evaluate and each stakeholder has their own perspective. Investors are seeking reassurance about their investments. Real estate agents, promising  a 25% return on investment (ROI) to sell properties with a limited lifespan. Agents dealing with visas for new resident Notaries having interest in a successful transaction. Developers with large investment engaged Naturally, most actors adapt professional advice to their clients and offer services in the best interest of their clients. As an investor with a financial background, I consistently view a property market as defined by demand and supply, with various variables, much like any other market. Read also : How to Buy a Property in Bali? The Offer in the Bali Property Market: From Uluwatu to Canggu, Ubud, or East Bali, there has been a notable increase in property offers in recent years. Many Balinese have sought to sell or lease their land to generate cash during and after the COVID-19 pandemic. Interestingly, the most significant demand during this period came from Javanese buyers, capitalizing on the crisis to acquire land, while Balinese landowners were eager to liquidate their assets for cash. This trend flooded the market with leasehold or freehold properties, such as villas, land, and hotels. Other nationalities joined the trend, buying and developing properties to offer off-plan villas or land. As we approach the end of 2023, it’s time to evaluate the situation. The number of listings on short-term rentals in Bali has surged, reaching almost 58,500 listings on various platforms, marking a 22% increase. This trend has continued until the end of this year in 2023 and it is now time to assess the situation. If we take the number of listings for short-term rentals in Bali, no words can describe more than a graphic. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Is the demand keeping pace? Investors typically seek returns through short-term rentals, long-term rentals, or capital gains. Due to investors’ confidence in property occupancy, capital gains depend on rising land demand. A bubble occurs when the market experiences capital gains based solely on hope. It can burst if buyers perceive a lack of real demand or if there are no tax advantages for buyers. Current Demand Trends: Airbnb numbers tell a revealing story. The occupancy rate for 2023 is falling below that of 2022, with several factors contributing to this decline: People are less inclined to travel far from their home country. Savings need replenishing. Bali’s reputation as a crowded destination with high traffic is affecting its appeal, especially as other places offer better infrastructure Read also: Bali Property Market Trend 2023 – 2024 Property Occupancy Rates in Bali Property Occupancy Rate in Ubud Property Occupancy Rate in Canggu Area Canggu, in particular, shows a significant drop from over 65% to around 50% in occupancy rate. Despite a declining market trend, revenue took time to follow suit due to higher listing prices. Property owners with short leaseholds aimed for fast ROI by listing at premium prices when demand was high. However, a general trend of declining revenue is emerging, aligning with the total revenue of 2022. This trend indicates that revenue persists but is distributed among more listings with lower occupancy rates. In this competitive landscape, having a strong partner is crucial for differentiation. REVENUE OF BALI PROPERTY MARKET ON SHORT TERM RENTAL To Invest or Not in the Bali Property Market? The answer is both yes and no. We recommend clients formulate a robust business plan and thoroughly understand the location of their investment. Acquiring Freehold property (HGB or Hak Pakai) is crucial, especially in a downturn, as leasehold becomes a double penalty, losing value due to the market and having a shorter lease duration. Key considerations include: Always do a market study and study numbers (not the ones from the seller) Always understand your customers behaviour and their travel trends. A lot of promoters try to bring apartments on the market. Is Bali the place people want to stay in an apartment? Are clients going to fly out from New York to stay in an apartment? Understand the changes. India is becoming one of the biggest markets for Bali. Are Indians staying for 4 days or 2 weeks? Will they spend as much as in other markets? Will it be perfect to stay in a 5-star hotel, an apartment, or a villa? Make sure your contract is secured and you perform the correct due diligence. Is long-term rental another alternative? Can I look at the Indonesian market? Have a proper marketing strategy and property management company Bali will always be Bali. Indonesia is a strong market with an important local market. But Indonesia is more than Bali and offers a lot of new opportunities to develop sustainable forms of tourism. Sumba, Raja Ampat, and those islands on the east coast of Indonesia show that their occupancy rates can stay very high. Some resorts, such as Misool Eco Resort, are fully booked years in advance. Some resorts in Sumba also still have a strong occupancy rate that is increasing. How can you help me decide whether to invest or not in Bali or Indonesia? We can assist you in studying the market, providing insights, data, and recommendations. As investment and legal advisors, we offer comprehensive legal advice and assistance throughout your investment process to ensure your interests are protected. Investors should adopt a medium- to long-term perspective. Indonesia offers various submarkets
- [Tax Planning: How to optimise taxation in Indonesia](https://ilaglobalconsulting.com/tax-planning-indonesia/): Feeling overwhelmed by Indonesia’s tax landscape? As a company, family office, or entrepreneur, minimizing your tax burden while adhering to regulations can seem like a complex puzzle. But worry not, effective tax planning, tailored to your needs, can be your guide to optimizing taxation in Indonesia. What is Tax Planning? Think of it as strategizing your finances to keep more of your hard-earned money. It’s about using legal methods to leverage available allowances, deductions, and exemptions offered by the Indonesian government. Why should I consult for tax planning? Save money: Reduce your tax liability and keep more of your income for growth, investment, or rewarding your team. Peace of mind: Knowing your taxes are handled efficiently can alleviate stress and uncertainty. Stay competitive: Smart tax planning can give you an edge in the dynamic Indonesian market. Tax Planning a Strategies for Success in Indonesia: Investment Savvy: Utilize tax-advantaged investments like Pensiun Dana Manfaat Pemberhentian (PDMP) or Sukuk Wakalah to optimize returns and reduce taxable income. Deduction Detectives: Claim legitimate deductions for business expenses, research and development, or employee training to lower your tax bill. Timing Tricks: Strategically adjust the timing of income and expenses to fall into lower tax brackets or benefit from specific deductions. Compliance Champions: Partner with our team of experienced tax consultants to stay updated on regulations and navigate the evolving tax landscape with confidence. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Is tax planning only for high-net-worth individuals or big companies? No, absolutely not! While complex tax planning strategies might be more relevant for high net-worth individuals or large corporations, the fundamentals of smart tax optimization apply to everyone, regardless of income level or business size. Read also: Corporate Income Tax in Indonesia. Here’s why: Everyone pays taxes: Whether you’re a salaried employee, a freelancer, or a small business owner, everyone faces some form of taxation in Indonesia. Minimizing your tax burden, even by a small percentage, can make a significant difference in your disposable income. Simple strategies can have a big impact: Even basic tax planning measures like claiming eligible deductions, utilizing tax-advantaged accounts, and understanding income brackets can lead to noticeable savings. Here are some concrete examples of how tax planning can benefit individuals and small businesses in Indonesia: Salaried employees: Claiming deductions for medical expenses, education costs, or dependent care can lower your taxable income and reduce your tax bill. Freelancers: Utilizing micro business tax regulations or setting up a Pensiun Dana Manfaat Pemberhentian (PDMP) can offer substantial tax benefits and secure your future savings. Small businesses: Optimizing depreciation deductions, claiming legitimate business expenses, and understanding VAT regulations can contribute to significant tax savings and boost your bottom line. Tax planning is not exclusively for the wealthy or the big players. Even small steps towards optimization can lead to significant savings and contribute to your financial well-being. Don’t underestimate the power of smart tax planning, regardless of your income or business size. Start early: The sooner you implement tax-efficient strategies, the greater the long-term impact on your wealth accumulation. Seek professional guidance: While basic strategies can be managed independently, consulting a qualified tax consultant can unlock more complex optimization opportunities and ensure compliance with regulations. Tax laws are complex and subject to change. Consulting with our qualified tax consultants ensures you stay compliant and optimize your tax strategy. Never engage in illegal tax schemes. We prioritize ethical and transparent approaches to maximize your savings while respecting regulations. Case Study: Simplifying Taxes for a Family Office Meet the Wijayas, a successful family operating a thriving manufacturing business in Indonesia. Their family office manages their diverse portfolio, including the business, real estate investments, and personal wealth. However, their tax bill threatened to significantly eat into their profits and future investment plans. The Wijayas relied heavily on traditional income generation methods, unaware of tax-efficient strategies. This resulted in a higher tax burden than necessary. Additionally, their portfolio lacked diversification, limiting opportunities for optimization. Read also: Personal Income Tax In Indonesia Action plan Our tax consultants partnered with the Wijayas to implement a tailored plan: Investment Diversification: We recommended investing in Pensiun Dana Manfaat Pemberhentian (PDMP), a tax-advantaged retirement scheme offering attractive returns and tax deductions on contributions. Real Estate Optimization: We analyzed their rental properties and identified opportunities to utilize depreciation deductions and optimize rental income timing to minimize tax impact. Expense Management: We reviewed their business expenses and suggested strategies to claim legitimate deductions for essential costs like research and development, employee training, and technology upgrades. By implementing these tax-efficient strategies, the Wijayas: Reduced their tax bill by 20%, freeing up significant capital for reinvestment and family goals. Boosted their long-term wealth through PDMP investments and optimized real estate income. Gained peace of mind knowing their tax affairs were handled efficiently and legally. The Takeaway Working with tax consultants, companies, and family offices in Indonesia can unlock significant tax savings. You can secure financial stability and fuel your future growth. Don’t let taxes be a burden. Contact ILA today to explore personalized tax planning strategies and navigate the Indonesian tax landscape with confidence.
- [Navigating Bali's Property Market – A Comprehensive Guide to Investing in Bali Real Estate](https://ilaglobalconsulting.com/due-diligence-bali-real-estate-comprehensive-guide-for-savvy-investors/): Bali’s allure transcends its breathtaking landscapes and vibrant culture. For many, it whispers the promise of a dream property, a haven of tranquility nestled amidst emerald rice fields or overlooking the azure expanse of the Indian Ocean. But before embarking on this exciting journey, navigating Bali’s unique land ownership laws and regulations is crucial for a smooth and secure investment. This comprehensive guide demystifies the complexities of Balinese property, offering vital insights on leasehold and freehold rights, unraveling due diligence procedures when investing in Bali real estate, and illuminating hidden gems – ensuring your investment journey is not just rewarding, but also well-informed. Understanding the Land Landscape: Leasehold vs. Freehold Unlike many countries, foreigners cannot directly own land in Bali. However, despair not! Enter the Hak Pakai, a long-term leasehold right granting you the privilege of possessing and enjoying a property for up to 30 years, with renewable options stretching for generations. This practical solution offers benefits for both investors and the environment, ensuring responsible land use and safeguarding Bali’s natural beauty. Choosing between Hak Pakai (leasehold) and Hak Milik (freehold) through nominee arrangements requires careful consideration of your long-term vision and budget. Here’s a breakdown to help you decide: Leasehold (pros and cons) More affordable: Requires a smaller upfront investment compared to freehold. Renewable: Offers the security of extending your lease beyond the initial 30 years, often with preferential renewal rates depending on the negotiation. Lower maintenance burden: Landowner typically handles major maintenance and repairs. No direct land ownership: You don’t own the land itself or the property itself, but rather the right to use and enjoy it. Potential rent increases: Leases may have clauses allowing for rent adjustments over time. Inheritance limitations: Leasehold rights are typically not inheritable in the same way as freehold property. Freehold (HGB or Hak Pakai) Full ownership: You legally “own” the land through a company Higher resale value: Offers greater potential for capital appreciation compared to leasehold. Inheritance potential: Can be passed down to heirs under specific legal conditions. Greater control: Provides more freedom in terms of development and renovations Possibility to leverage and get a mortgage to develop another property Higher upfront cost: Requires a significantly larger investment Maintenance responsibility: You are responsible for all maintenance and repairs on the land and property. Nuances and Considerations Beyond the basic framework, each option presents unique nuances to consider. For example, leasehold properties may have restrictions on certain types of construction or business activities. Conversely, nominee arrangements can be complex, requiring careful selection of a trustworthy trustee and ensuring clear legal documentation. Case Study: Finding Your Perfect Fit Imagine Sarah, a yoga enthusiast planning to open a retreat center in Bali. After careful research, she decides on a beautiful villa on freehold. She negotiates favorable terms and understands the potential for rent increases. With expert legal guidance, Sarah secures her dream property and takes the next step in investing in Bali real estate by using her first property as mortgage collateral to acquire a second one. After 4 years Sarah can now double her investment each time she refunds the mortgage by renting on AirBnb her properties. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Understanding Due Diligence for Investing in Bali Real Estate Due diligence when you investing in Bali real estate or Indonesia is your shield against hidden pitfalls. Here are some key steps to ensure a smooth and secure investment: Land Title Verification: Engage a reputable lawyer to verify the property’s land title, ensuring it’s free of encumbrances and held by a legitimate owner. Zoning Regulations: Understand the zoning of the land to avoid restrictions on your desired use of the property. Building Permits and Licenses: Confirm if necessary permits and licenses for construction or renovation exist, avoiding future complications. Environmental Considerations: Research potential environmental risks like flooding, landslides, or proximity to hazardous materials. Structural Integrity: Conduct thorough inspections to assess the property’s structural soundness and potential repair needs. Road access: Check if you have full right to access to your property Read also: Things to Know Before Investing in a Property in Bali Case Study: Paradise Lost – The Price of Skipped Due Diligence in Bali when buying a property The Dream: John, a globetrotting entrepreneur, stumbled upon a breathtaking cliffside villa in Bali. Lush greenery tumbled down to the turquoise ocean, and the whispering palms promised endless sunsets. He envisioned yoga retreats, art workshops, and a life dipped in island serenity. The price was a steal, the seller persuasive, and John, blinded by his Bali dream, rushed headlong into a purchase. Skipping Steps: In his haste, John neglected thorough due diligence. He skimmed the land title, ignored whispers of zoning issues, and didn’t bother with inspections. The seller’s charm and promises of “flexible regulations” were enough. The Nightmare Begins: Soon after moving in, the cracks started to show. Construction on a neighboring property blocked the ocean view, violating zoning regulations. Local authorities halted work, citing John’s lack of permits. His dream retreats became a legal nightmare. Hidden Costs: Inspections revealed structural issues, requiring costly repairs. The “flexible regulations” turned out to be costly bribes, draining John’s finances. The seemingly affordable price tag ballooned, leaving him with a property he couldn’t use and a mountain of debt. Lessons Learned for not doing a due diligence in Bali before investing a property:  John’s Bali dream turned into a cautionary tale. His eagerness to own a piece of paradise overshadowed the importance of due diligence. His mistakes cost him dearly: Financial Loss: The hidden costs and legal fees spiraled, leaving John with a financial burden. Lost Time and Opportunity: Years were spent battling legal issues
- [Corporate Income Tax in Indonesia: The latest rate and rules](https://ilaglobalconsulting.com/company-taxation-in-indonesia/): Indonesia has a legal basis in Article 23A of the 1945 Constitution (UUD 1945) for corporate income tax. There are various types of tax in Indonesia, especially for corporates. If you are a foreigner planning to open a business, it is important to understand them. Here’s the tax information in Indonesia that you must know: Corporate Income tax in Bali and Indonesia Taxation in Indonesia for resident corporations is subject to taxation on their global income. Foreign companies engaging in business through a permanent establishment (PE) in Indonesia assume similar tax obligations as resident taxpayers. The corporate income tax in Indonesia is set at 22% of the net profit. However new companies or certain sectors might benefit from a certain tax regime. Enjoy tax advantages tailored for small enterprises Corporate taxpayers with an annual turnover of up to 50 billion rupiah (IDR) are eligible for a 50% tax discount from the standard rate. This discounted rate applies proportionally to taxable income on the portion of gross turnover up to IDR 4.8 billion. Enterprises with a gross turnover not exceeding IDR 4.8 billion are subject to a final income tax rate of 0.5% based on turnover. Particularly of the regime, taxpayers are required to install the CIT on a monthly basis with self-assessment principle. Therefore, tax planning is necessary because the Annual Income Tax Return (SPT) must be submitted no later than the end of April of the following tax year. Branch Taxation in Indonesia Branch Profit Tax (BPT) is an additional tax imposed on a Permanent Establishment (PE), complementing the Corporate Income Tax (CIT). The BPT rate stands at 20% and is levied on the PE’s net profit. However, this rate may be subject to reduction based on the statement of a tax treaty between where the Branch is tax resident. Notably, an exemption from Branch Profit Tax is granted if the net profit after tax of the PE is reinvested in Indonesia, provided it meets specific requirements. This provision serves as an incentive for strategic reinvestment in the Indonesian business landscape. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Corporate Income Tax Payments and Deadlines in Indonesia Understanding Deductible and Non-Deductible Business Expenses in Indonesia A company starting in Indonesia has the first 3 years no advantages with deductible expenses. Indeed, the tax office applies the tax on the income and not on the net profit. However it is still important to record the expenses in order to maintain the balance sheet and PnL (profit and loss) of the company to fill the LKPM report out every quarter. Most of expenses of the company are deductibles. It includes: salaries rent donations expenses related to the business activity However, the tax office doesn’t recognize the expenses below as deductible: rent for private use taxes and penalties reimbursement for an employee if the expense is not related to the activity of the company (to avoid the withholding tax and tax on salary) Read also: Dubai to Bali : Tax Treaty Indonesia and UAE Other taxes Regional Taxes Corporate taxpayers may incur various regional taxes and retributions, with rates spanning from a minimum of 0.2% to a maximum of 75%. These rates are applied to a diverse set of reference values established by the respective regional governments. Businesses such as hotels, restaurants, villas, renters, spas, fitness centers have to pay a local tax called PB1. The rate is variable in instance from 10 to 12.5%. Import tax in Indonesia Luxury tax on import goods in Indonesia Despite a regulation from 2021 certain products are still subject to a luxury tax in Indonesia. This tax usually applies on top of the VAT. Import duty Importer or resident companies have to face import duty on top of the VAT. HS codes are primordial to determine the correct tax amount. Withholding tax on payment Particularly the Indonesian tax system requires that a taxpayer pays a tax on a payment done to another taxpayer. The party A buying a service or paying a dividend to another taxpayer needs to withhold a tax and requires the tax number of the second party to pay on its behalf. This amount is from 2 to 10% based on the type of payment. Taxpayers are subject to withhold a tax of 20% for any payment made to non resident. Transfer pricing is important to be planned in advance to optimize the tax payment. Read also: Tax Planning: How to Optimise Taxation in Indonesia Capital gain and Interest rate The system treats capital gain as income and applies the tax regulations described above. A withholding tax rate of 15% applies on the gross amount of interest. The WHT applied domestically on this interest serves as a tax credit, offsetting against the standard income tax rates of 22% for corporate taxpayers. VAT in Indonesia The Value Added Tax (VAT) law in Indonesia permits the government to adjust the VAT rate between 5% and 15%. As of April 1, 2022, the applicable VAT rate on deliveries of goods and services within Indonesia is 11%, with exceptions. Companies can export at 0% while the import of goods incurs an 11% VAT. Certain services related to movable and immovable goods outside the Customs Area fall under 0% VAT, including toll manufacturing, repair services, and consultation for construction. Services performed within the Customs Area for customers outside are subject to the standard 11% VAT. Consumption of foreign services and intangible goods, delivered via e-commerce to users in Indonesia, incurs an 11% VAT. The VAT is due on the accrual principle goods when the company delivers the goods or services . VAT filing is a monthly requirement,
- [Navigating Cross-Border Transactions with Indonesia: Comprehensive Insights for Business Success](https://ilaglobalconsulting.com/navigating-cross-border-transactions-with-indonesia/): In an era of global interconnectedness, Indonesia emerges as a key player in the realm of cross-border transactions. This archipelagic nation, with its diverse culture and economic dynamism, offers a plethora of opportunities for international businesses. However, to harness the potential of this thriving market, companies must delve deeper into the intricacies of cross-border payments with Indonesia. This comprehensive guide explores the five pivotal considerations, providing an in-depth roadmap for navigating the complexities and ensuring success amid new regulations. What is Cross-Border Transactions? Cross-border practices are the entry of imported goods from abroad without passing through the customs administration inspection process. Imported goods without this inspection are usually sold through e-commerce and shipped directly to the buyer. Indonesia’s regulatory landscape is multifaceted, encompassing a wide array of industry-specific regulations, trade policies, and foreign investment laws. To embark on a successful cross-border journey, companies must meticulously research and understand the regulatory intricacies relevant to their sector. Seeking guidance from local legal experts becomes imperative to navigate compliance requirements effectively. Engaging in thorough due diligence will not only ensure adherence to Indonesian laws but also mitigate legal risks, fostering an environment conducive to sustained growth. Furthermore, understanding Indonesia’s approach to foreign investment is crucial. The country has implemented various regulations to attract foreign capital while safeguarding its national interests. Navigating through the Investment Coordinating Board (BKPM) and comprehending the Negative Investment List, which outlines sectors with restricted foreign investment, is vital. Staying abreast of regulatory changes and maintaining a flexible strategy will empower businesses to adapt to evolving compliance landscapes. Cultural Sensitivity and Business Etiquette in Indonesia Indonesia’s rich cultural tapestry plays a pivotal role in shaping business interactions. Establishing and nurturing relationships with Indonesian counterparts requires a keen understanding of cultural nuances and business etiquette. Unlike many Western cultures, interpersonal relationships hold significant value in Indonesian business practices. Taking the time to build trust and rapport through face-to-face meetings can greatly enhance the success of cross-border ventures. Businesses should invest in cross-cultural training programs for their teams, fostering cultural sensitivity and effective communication. Recognizing the hierarchical nature of Indonesian society and adhering to formalities in both written and verbal communication is crucial. Demonstrating respect for local customs and traditions not only facilitates smoother interactions but also contributes to the development of long-lasting partnerships. Also Read: New Import Policy for Hand-Carry Goods in Indonesia in 2024 Currency Exchange and Financial Considerations in Indonesia The Indonesian Rupiah (IDR) serves as the official currency, and its exchange rates can significantly impact the financial aspects of cross-border transactions. Businesses engaged in international trade must closely monitor currency trends, assessing potential exposure to currency risk. Implementing risk mitigation strategies, such as hedging, provides a safeguard against volatile exchange rates. Collaborating with local financial institutions is essential for secure and efficient fund transfers. Ensuring compliance with Indonesia’s financial regulations and exploring avenues for cost-effective currency exchange solutions can contribute to financial stability in cross-border dealings. Transparent communication with financial partners and a proactive approach to currency risk management will fortify the financial foundation of cross-border engagements. Customs and Import/Export Regulations in Indonesia Efficient navigation of customs and import-export Indonesia regulations is critical for ensuring the seamless flow of goods in cross-border transactions. Businesses must comply with Indonesia’s specific rules, which include tariff structures, documentation, and the broader Indonesia trade policy framework. Understanding these elements prevents delays and ensures compliance. Partnering with experienced customs brokers or logistics providers can streamline processes, reducing bottlenecks at borders. Understanding Indonesia’s customs procedures, including its electronic customs system, helps optimize supply chains. Pre-shipment inspections and proper permits further support efficient import-export Indonesia operations. Also read: How to Register Trademark in Indonesia (2024 Guide) Tax Optimization in Cross-Border Transactions in Indonesia Optimizing tax considerations is a crucial aspect of cross-border transactions. Indonesia, like any other country, has its tax regulations, and businesses must navigate these complexities to ensure compliance while maximizing efficiency. ILA Consulting, with its expertise in investment and legal advisory, plays a pivotal role in guiding businesses through the intricacies of tax optimization in cross-border ventures. ILA Consulting’s tax experts delve into the specifics of Indonesia’s tax laws, providing tailored strategies to minimize tax liabilities legally. This includes exploring tax incentives available for certain industries and structuring transactions in a tax-efficient manner. The goal is to strike a balance between compliance and efficiency, ensuring that businesses meet their tax obligations while optimizing their overall financial position. The complexities of international tax law require a nuanced understanding, and ILA Consulting brings its wealth of experience to the table. By partnering with ILA, businesses can navigate the intricate landscape of cross-border taxation, mitigating risks and leveraging opportunities for tax optimization in the Indonesian market. Intellectual Property Protection in Indonesia As businesses engage in cross-border transactions, safeguarding intellectual property (IP) becomes paramount. Indonesia has made significant strides in enhancing IP protection, yet proactive measures are essential for comprehensive coverage. Conducting thorough due diligence on existing IP rights, registering trademarks locally, and formulating robust contractual agreements with local partners contribute to a robust IP protection strategy. Indonesia’s legal framework provides avenues for the protection of trademarks, patents, and copyrights. Businesses should leverage these mechanisms to secure their intellectual assets effectively. Crafting contracts that clearly delineate IP ownership and usage rights, coupled with periodic IP audits, fortifies a company’s position against potential infringements and legal challenges. How ILA Global Consulting Can Assist You in This Journey Embarking on cross-border transactions with Indonesia requires a strategic partner who can navigate the intricacies and ensure a smooth journey. ILA Global Consulting, a leading firm in investment and legal advisory, stands ready to be your guide. Tailored Legal Guidance: ILA Consulting’s legal experts specialize in Indonesian regulations, offering precise guidance to ensure compliance and mitigate legal risks effectively. Strategic Financial Advice: Our financial analysts monitor currency trends, providing real-time insights and strategies to mitigate financial risks associated with cross-border transactions. Cultural Sensitivity Training: Cultural advisors at ILA Consulting provide cross-cultural training programs, fostering awareness and understanding to navigate the
- [Retiring in Indonesia: Unlocking Paradise with Visas, Property, and Blissful Living](https://ilaglobalconsulting.com/retiring-in-indonesia-guidance/): Indonesia’s siren song beckons louder than ever, promising sun-drenched shores, vibrant festivals, and a warm embrace for retirees seeking a serene haven. But before you pack your bags and book your flight, navigating the legalities and logistics of relocation can feel like deciphering ancient hieroglyphics. Fear not, intrepid dreamers! This comprehensive guide illuminates the path to retire in Indonesia, covering the intricacies of visas, property investments, and the secrets to unlocking your blissful Indonesian retirement. Discover the beauty of an Indonesia retirement visa, explore the details of a visa for Indonesia, and understand the cost of living with this complete guide. Who Can Apply for a Retirement Visa in Indonesia? Indonesia gives the opportunity to retired people to spend their golden days into the country and apply for a limited stay permit (KITAS). People having reached 60 years can apply for the E33F Retirement Visa or E33E Silver Hair.   Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard 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. Visa Options: Your Key to Paradise Awaits E33F – Retirement Visa (KITAS) This visa is valid for 1 year with proven income (minimum US$2000/month), is ideal for active retirees exploring the diverse tapestry of Indonesia. Document requirements: Passport valid for at least 6 (six) months (for holders of travel documents other than passports such as emergency passports, documents of identity, etc. must be valid for 12 months). Personal bank statement with minimum amount USD $2000 or equivalent the last 3 months period (including name, date of period, and balance account). Recent photograph. Curriculum Vitae. Travel Itinerary. Guarantee from the guarantor. Bank account proving income or allowance with a value of US$3,000 per month. E233E Silver Hair (KITAS) This visa grants you a 5 stay permit with multiple entries, minimal restrictions, and the freedom to bring your loved ones. Your tropical escape awaits! Document requirements: Valid Nationality Passport at least 6 (six) months. Latest color photograph. Curriculum Vitae. Travel Itinerary. Statement of commitment that the applicant will deposit funds in an account in his/her own name worth at least US$50,000 (fifty thousand US dollars) in a state-owned bank. Proof of income or benefits with a minimum value of US$3,000 (three thousand US Dollars) per month. E33 – Second home visa: The Gilded Gateway to Luxury For high-net-worth individuals, the Second home Visa (E33) opens the doors to a life of exclusivity. You can obtain this visa with a validity of 5 years with a possible extension to 10 years. This KITAS is a perfect solution for people wishing to establish Indonesia as their second home or willing to retire in Indonesia. The applicant of the second home visa must fulfil at least one of the requirements below. The property investment cannot be a leasehold and has to be purchased under Hak Pakai. Deposit funds in an account under the name of the Foreigner at a state-owned bank with a value of US$ 130,000 (one hundred thirty thousand US Dollars) Purchase property in Indonesia such as an apartment/flat house with a value of US$1,000,000 (one million US Dollars). Read Also: E33G: Remote Worker Visa (Digital Nomad) in Bali Beyond the Visa: Building Your Dream Property Portfolio Your Indonesian retirement isn’t just about a visa; it’s about building a life you love. Where to retire Beachfront villas: Wake up to the sound of waves lapping at your shore in Bali or Lombok. Charming traditional houses: Immerse yourself in the rich culture of Yogyakarta or Ubud. Vibrant city hubs: Experience the energy of Jakarta or Surabaya, with modern amenities and cultural offerings. Serene mountain retreats: Find peace and tranquility in the lush highlands of North Sumatra or West Java. Investment Options: Direct purchase: Own your slice of paradise with complete control. Leasehold : Enjoy 30+ years of property rights without land ownership. Co-ownership projects: Share costs and maintenance responsibilities while enjoying a piece of the dream. Leaseback options: Generate passive income through guaranteed rental agreements Remember: Seek professional guidance: Consult experienced lawyers and real estate agents to navigate legalities, understand property taxes and maintenance costs, and ensure a smooth investment. Plan for the future: Consider potential property appreciation, exit strategies, and long-term maintenance costs for financial security.   Living Your Blissful Indonesian Dream: Embrace the local culture: Learn Bahasa Indonesia, connect with communities, and immerse yourself in the warmth of Indonesian hospitality. Healthcare: Research healthcare options and consider international health insurance for peace of mind. Lower cost of living: Enjoy a comfortable life on a budget compared to many Western countries. Activities and exploration: From diving in coral reefs to trekking through volcanoes, Indonesia offers endless possibilities for adventure and discovery. Bonus Tips for Success: Start early: Visa applications and property transactions can take time. Plan ahead to ensure a smooth transition. Be flexible and adaptable: Embrace the Indonesian way of life and be prepared for unexpected situations Invest in Yourself: Learn new skills, pursue hobbies, and stay active to make the most of your Indonesian retirement. For spend your retire in Indonesia you can join local yoga classes, take up painting, or volunteer in your community. An active life keeps your mind and body vibrant, enriching your golden years in paradise. Explore Beyond Tourist Destinations: Venture off the beaten path and discover hidden gems. Visit traditional villages in Sulawesi, hike through the rice terraces of Bali, or lose yourself in
- [REITs in Indonesia: From Concept to Market](https://ilaglobalconsulting.com/building-reits-in-indonesia-from-concept-to-market/): Indonesia’s Real Estate Investment Trusts (REITs), officially known as Dana Investasi Real Estat Berbentuk Kontrak Investasi Kolektif (DIREs in Indonesia), are on an exciting growth trajectory. If you’re interested in tapping into this potential, understanding the process of creating a DIRE is crucial. Here’s a breakdown of the key steps, along with further insights into the Indonesian REIT landscape: What are REITs (DIREs) in Indonesia? Real Estate Investment Fund (REIT) is a container used to collect funds from the public or investors to be invested in real estate assets, assets related to real estate, and/or cash and cash equivalents. Meanwhile, the Infrastructure Investment Fund (DINFRA) is a container in the form of a Collective Investment Contract used to raise funds from the investor community to be invested mostly in infrastructure assets by the Investment Manager. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Conception and Planning of DIREs: Identify a Niche: Research market demand and choose a focus for your DIRE, such as retail, office, healthcare, or logistics. Analyze existing DIREs to avoid saturation in specific sectors. Assemble a Team: Gather experienced professionals in real estate development, finance, legal matters, and REIT management. Develop a Business Plan: Define your investment strategy, target properties, funding sources, and expected returns. Regulatory Compliance DIREs: Form a Legal Entity: Establish a corporation that will become the DIRE (REITS in Indonesia). Consult legal advisors to ensure compliance with Indonesian regulations. Obtain OJK Approval: File an application with the Financial Services Authority (OJK) for DIRE registration. This involves submitting detailed documentation about your business plan, financial projections, and team expertise. Meet REIT Qualification Criteria: Ensure your DIRE adheres to the minimum requirements, including: Investing at least 75% of assets in real estate or related assets. Generating at least 75% of gross income from rents, real estate sales, or mortgage interest. Distributing at least 90% of taxable income to shareholders as dividends. Capital Raising and Investment: Initial Public Offering (IPO): List your DIRE on the Indonesia Stock Exchange (IDX) to raise capital from public investors. This requires meticulous preparation and adherence to IPO regulations. Private Placement: Secure funding from institutional investors or high-net-worth individuals through private placement deals. This can be a faster route to market but may involve higher interest rates or stricter investment terms. Acquire Target Properties: Use the raised capital to purchase income-generating real estate assets that align with your DIRE’s focus. Conduct thorough due diligence and ensure property titles are clear. Ongoing Management and Operations: Establish a Management Team: Build a team with expertise in property management, tenant relations, financial reporting, and compliance. Maintain High Occupancy Rates: Implement effective leasing strategies and property maintenance to attract and retain tenants, ensuring steady income generation. Distribute Regular Dividends: Pay out at least 90% of taxable income to shareholders as dividends, fulfilling a key REIT requirement and attracting investors seeking regular returns. Ensure Transparency and Reporting: Maintain accurate financial records and prepare regular reports for shareholders and regulatory bodies. Beyond the Basics: A Deeper Dive into Indonesian REITs Government Incentives: The Indonesian government actively supports DIRE growth through tax benefits like double taxation exemption and simplified regulations. This creates a favourable environment for REIT development. Market Potential: Indonesia boasts a thriving economy and a burgeoning middle class, driving demand for diverse real estate sectors. DIREs offer investors exposure to this growth potential through various property types. Challenges and Opportunities: While the market is promising, liquidity concerns and limited diversification options remain challenges. However, government efforts to encourage broader sector representation and improve market depth are underway. Investment via a REIT Scheme Review Double taxation hurdle cleared for Indonesian real estate investors! The government recently made a big move, eliminating double taxation for anyone investing in property through a special program called the “Collective Investment Contract” (CIC). You can now invest in Indonesian real estate and keep more of your hard-earned money. Think of it like this: Imagine a group of friends wanting to buy a building together. Instead of each person buying directly, they pool their money in a joint account and appoint someone to manage it. The CIC does that for real estate investments, similar to REITs Indonesia. You join forces with other investors, combine your money, and reap the benefits of owning income-producing properties. Previously, investing this way meant paying taxes twice: once on your share of the profits and again on the group’s activities. But thanks to the new regulation, that’s no more! You keep more of your profits, making it a much more attractive option for investors. So, if you’ve ever dreamed of owning a piece of Indonesian real estate, now’s the time to explore the CIC program. It’s a simpler, more tax-friendly way to invest and potentially enjoy a steady stream of income from your property holdings. REITs Investment Limits Real estate assets, such as buying an office building and renting it out. Assets related to real estate, such as buying shares/bonds of property companies In the form of cash or cash equivalent Overview of prospective licenses and permits required to conduct business operations The creation of the DIRE-KIK and the transfer of the land and building assets into the DIRE-KIK involves the following steps: Establish DIRE-KIK; Appoint Investment Manager and Custodian Bank to manage DIRE-KIK and oversee and execute cash handling and payments, respectively Relevant parties, including Holdco to subscribe for units in the DIRE-KIK; Dire-KIK uses the funds to acquire: The shares of existing companies owning the land Establish its own PMA company, inject the funds into the PMA, and the PMA company acquires the land and building assets. The Benefits and Disadvantages of Reits in Indonesia Investing in REITs certainly has
- [Indonesia: A Hidden Gem For Mining Opportunities](https://ilaglobalconsulting.com/explore-mining-investment-in-indonesia/): Indonesia, an archipelago jewel nestled between the Indian and Pacific Oceans, boasts more than just sun-kissed beaches and vibrant coral reefs. Beneath its lush landscapes, Indonesia holds vast reserves of mineral coal, attracting investors eager to meet global demand for critical resources. The country offers opportunities in mining a range of valuable commodities. Its from the glittering allure of gold to the essential nickel used in electric vehicle batteries. Indonesia truly presents a compelling landscape for ambitious mining ventures. A Geological Tapestry Indonesia’s geological tapestry is a testament to its mineral abundance. Formed at the crossroads of tectonic plates, the country is endowed with a diverse spectrum of metal deposits, making it a global leader in several key sectors: Nickel: Ranked the world’s top producer with an estimated 75 million tons in reserves, Indonesia sits at the helm of the electric vehicle revolution. Nickel’s role in lithium-ion batteries fuels a projected demand surge of 250% by 2025, making it a lucrative prospect for investors. Gold: With an estimated 2,100 tons of gold reserves, Indonesia holds the seventh-largest gold deposits globally. Its long history of gold mining and the metal’s inherent value as a safe haven during economic uncertainty make it a compelling investment option. Coal: Though transitioning towards renewables, Indonesia remains a major coal producer, boasting the world’s sixth-largest reserves. This readily available resource caters to domestic and international demand for energy generation, offering potential for investment in efficient and sustainable coal utilization technologies. Copper: Home to the Grasberg mine, the world’s largest copper deposit, Indonesia is a significant player in this versatile metal’s market. Copper’s applications range from electronics and construction to renewable energy infrastructure, presenting diverse investment opportunities. Beyond the Big Four: While these minerals dominate the headlines, Indonesia’s geological bounty extends far beyond. Tin, bauxite, manganese, and even rare earth elements like lithium and cobalt further enrich the investment landscape, offering opportunities for specialized investors seeking unique niches within the mining sector. Start your investment journey in Indonesia the right way With so many diverse investment opportunities in Indonesia, you need to make sure you’ve got the right setup to do business here.  Get help from our team of experts to register your company, navigate the real estate market and secure your visa and stay permit. Schedule a free call with us today to plan your next steps with ILA. Data-Driven Insights To fully grasp the potential within Indonesia’s mining industry, let’s delve into some concrete data: Indonesia contributes 9% to the global nickel supply, with a projected annual growth of 7.5% in the next five years. This translates to a potential market value of over $100 billion by 2027, attracting major players like Tesla and LG Energy Solution to invest in Indonesian nickel projects. Gold production in Indonesia reached 188 tons in 2022, and experts predict a steady rise to 250 tons by 2025. This translates to a potential market value exceeding $15 billion, making gold a consistently attractive investment option. Coal exports from Indonesia surpassed $25 billion in 2022, with projections for continued growth in the near future. While the industry faces pressure to transition towards renewables, efficient coal utilization technologies offer investment potential in the short to medium term. The Indonesian government has pledged $60 billion for infrastructure development by 2024, significantly impacting the mining sector. This includes upgrades to ports and transportation networks, facilitating easier mineral transportation and boosting the industry’s efficiency and competitiveness. Investment Mining in Indonesia Opportunities Unfold These insights paint a promising picture for investors. Here are some potential avenues to consider: Direct investment in mining projects: Partnering with established or emerging mining companies to explore, develop, and extract valuable minerals. Investing in mining technology and services: Providing innovative solutions for automation, safety, and environmental sustainability within the mining sector. Supporting downstream processing industries: Investing in facilities and infrastructure to refine extracted minerals within Indonesia. Investing in renewable energy solutions: Partnering with mining companies to develop and implement renewable energy projects within their operations. By mitigating environmental impact and attracting ESG-conscious investors. Challenges and Considerations While the potential is vast, navigating the Indonesian mining landscape requires careful consideration of certain challenges: Regulatory compliance: Ensuring adherence to environmental and social regulations, which can be complex and subject to change. Community engagement: Building strong relationships with local communities and ensuring mining projects benefit the surrounding population. Sustainability practices: Implementing responsible mining practices that minimize environmental impact and promote long-term sustainability. Market fluctuations: The mining industry is inherently volatile, and prices of minerals can fluctuate significantly, requiring a risk management strategy. A Model for Success: Martabe Gold Mine and Beyond The Martabe Gold Mine in North Sumatra serves as a prime example of responsible investment in Indonesian mining. This gold and silver mine, operated by PT Agincourt Resources, adheres to strict environmental and social responsibility standards. The company has invested in education, healthcare, and infrastructure projects in the surrounding communities, fostering sustainable development and goodwill. Martabe’s success demonstrates the potential for mining ventures to be not just economically viable but also socially beneficial. Beyond Martabe: Embracing ESG Principles Investors seeking to navigate the Indonesian mining landscape can further their success by embracing Environmental, Social, and Governance (ESG) principles. Integrating ESG practices into mining projects can lead to: Reduced operational costs: Efficient resource management, waste reduction, and renewable energy adoption can translate to significant cost savings. Enhanced brand reputation: Adherence to ESG principles fosters positive community relations, strengthens investor confidence, and improves brand perception. Greater access to capital: ESG-focused investors are increasingly seeking opportunities aligned with their values and incorporating ESG. Examples of ESG Implementation in Indonesian Mining PT Vale Indonesia, a nickel producer, partnered with local communities to develop  a mangrove restoration program, mitigating environmental impact and creating sustainable livelihoods. PT Freeport Indonesia, a copper and gold producer, invested in renewable energy projects and established a biodiversity conservation program, showcasing a commitment to environmental sustainability. PT Bukit Asam, a coal producer, implemented community development programs focused on education, healthcare, and infrastructure. Indonesia’s
- [Navigating Contracts and Agreements in Bali: Legalities](https://ilaglobalconsulting.com/navigating-contracts-and-agreements-in-bali/): The allure of Bali’s emerald rice paddies, turquoise waters, and vibrant culture is undeniable. But beyond the postcard scenery lies a complex legal landscape, especially when it comes to contracts and agreements in Bali. Whether you’re purchasing your dream villa, launching a business venture, or securing employment, understanding the nuances of Balinese contracts is crucial for protecting your interests and ensuring a smooth experience. This comprehensive guide delves into the intricacies of contract navigation in Bali, offering practical tips for drafting, reviewing, and understanding agreements across three key areas: property purchases, business partnerships, and employment contracts. Legal Steps for Purchase Property in Bali Bali’s property market offers diverse options, from charming traditional houses to luxurious beachfront villas. However, purchasing property comes with a unique set of legal considerations. Here are some key points to remember: Land Ownership Foreigners can own or lease land in Bali. You can ensure that your contract explicitly mentions the Hak Pakai and its duration. Nominee Arrangements While frowned upon by some, nominee agreements allow foreigners to indirectly own land through a local trustee. These agreements, however, require meticulous drafting and legal expertise to avoid disputes as Indonesia does not recognise those agreements. Due Diligence Don’t be swayed by idyllic views. Thoroughly research the property’s legal status, zoning regulations, and potential encumbrances. Engage a reputable lawyer to conduct due diligence and review the sales agreement. Contract Clauses Pay close attention to clauses regarding payments, completion timelines, warranties, and dispute resolution mechanisms. Ensure your contract is clear, concise, and translated into English if necessary. Case Study: Securing Your Dream Villa in Bali John, an American entrepreneur, fell in love with a traditional Balinese villa overlooking a rice paddy. Before signing the purchase agreement, John followed these steps: He hired a lawyer specializing in Balinese property law to conduct due diligence. The lawyer reviewed the land title, zoning regulations, and any potential encumbrances. John negotiated the contract clauses, ensuring clarity on payment terms, completion timelines, and warranty coverage. He had the contract translated into English for his complete understanding. By taking these precautions, John secured his dream villa with confidence and avoided potential legal pitfalls. Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.  At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.  Legal Key Points for Business Partnerships in Bali Bali’s burgeoning entrepreneurial ecosystem offers exciting opportunities for collaboration. However, before shaking hands in a partnership, ensure you have a solid legal foundation. Here are some considerations: Partnership Structure Decide on the most suitable structure for your venture, such as a joint venture, limited liability company (LLC), or partnership agreement. Each structure has different legal implications and tax consequences. Memorandum of Understanding (MOU) While not legally binding, an MOU can establish the core principles and intentions of your partnership before finalizing a formal agreement. Shareholder Agreements For LLCs, a shareholder agreement outlines ownership percentages, voting rights, profit-sharing, and dispute resolution mechanisms. Intellectual Property (IP) Clearly define ownership and usage rights for any intellectual property developed within the partnership, including trademarks, patents, and copyrights. Example: Drafting a Watertight Shareholder Agreement Emma and Liam, two friends, decided to open a yoga retreat in Bali. They created a detailed shareholder agreement that included: Defined ownership percentages and voting rights for each partner. Established clear profit-sharing formulas based on investment and contribution. Outlined dispute resolution procedures for any potential disagreements. Addressed intellectual property rights for the retreat’s branding and marketing materials. This agreement provided Emma and Liam with a secure framework for their partnership, promoting transparency and preventing future conflicts. Understanding Employment Contracts in Bali  Whether you’re hiring local talent or working remotely in Bali, a well-defined employment contracts is essential. Here are some key points to remember: Contract Language Ensure the contract is in English or a language you understand and make it bilingual to binding the Indonesian law. Job Description Clearly define the employee’s role, responsibilities, and performance expectations. Compensation and Benefits Specify salary, bonuses, overtime pay, leave entitlements, and other benefits. Research and adhere to Balinese labor laws regarding minimum wage, working hours, and mandatory benefits. Termination Clauses Clearly outline the grounds and processes for termination of employment for both the employer and employee. Understand the concept of “mutual termination” and its implications for severance pay. Dispute Resolution Establish a mechanism for resolving any disputes that may arise. Consider mediation or arbitration as alternatives to lengthy and expensive litigation. Example: Protecting your Interests with a Fair Contract Sarah, an Australian digital nomad, secured a freelance writing job with a local Bali-based tourism company. Before starting, she negotiated and signed a contract that included: A detailed job description outlining her specific writing tasks and deliverables. Clear payment terms with deadlines and specified currencies. Entitlement to paid leave is based on Balinese labor laws. A dispute resolution clause specifies a mediation process for any disagreements. By having a well-drafted contract, Sarah protected her rights, ensured fair compensation, and established a clear working relationship with her employer. Important Tips for Managing Contracts and Agreements in Bali Seek Professional Help Engaging a reputable lawyer and legal like ILA familiar with Balinese law is crucial for navigating the complexities of contracts. Their expertise can save you time, money, and potential legal headaches. Cultural Sensitivity Be mindful of cultural differences and communication styles. Directness may be perceived as disrespectful, and building trust takes time. Practice patience and open communication. Don’t Rush Thoroughly review and understand the contract before signing. Don’t be pressured into rushed decisions. Take your time to clarify any doubts or concerns with your counterpart. Maintain Open Communication Clear and consistent communication with your counterparts is essential for building
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- [Joint Venture and Joint Operation in Indonesia](https://ilaglobalconsulting.com/joint-venture-and-joint-operation-in-indonesia/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
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- [How to Apply for an Indonesian Multiple Entry Business Visa](https://ilaglobalconsulting.com/how-to-apply-indonesian-multiple-entry-business-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Why and how to open a company in Hong Kong](https://ilaglobalconsulting.com/why-and-how-to-open-a-company-in-hong-kong/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Bali and Lombok Investment Trend for 2025](https://ilaglobalconsulting.com/bali-and-lombok-investment-trend-for-2025/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Top 5 Investment Opportunities in 2025 in Bali](https://ilaglobalconsulting.com/top-5-bali-investment-opportunities-in-2025/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are

## Pages

- [Install & Repair Machine Visa](https://ilaglobalconsulting.com/install-repair-machine-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Work Trial Visa C18](https://ilaglobalconsulting.com/work-trial-visa-c18/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Social Volunteer Visa C6](https://ilaglobalconsulting.com/social-volunteer-visa-c6/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Short Course Training Visa C9](https://ilaglobalconsulting.com/short-course-training-visa-c9/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Music Performer Visa C7A](https://ilaglobalconsulting.com/music-performer-visa-c7a/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Internship Visa C22](https://ilaglobalconsulting.com/internship-visa-c22/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Event Speaker Visa C10](https://ilaglobalconsulting.com/event-speaker-visa-c10/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Art Performer Visa C7C](https://ilaglobalconsulting.com/art-performer-visa-c7c/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Contracts](https://ilaglobalconsulting.com/contracts/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Driving License](https://ilaglobalconsulting.com/driving-license/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Company Dissolution](https://ilaglobalconsulting.com/company-dissolution/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Business Setup](https://ilaglobalconsulting.com/business-setup/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Building Permit pbg-slf](https://ilaglobalconsulting.com/building-permit-pbg-slf/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Birth Reporting](https://ilaglobalconsulting.com/birth-reporting/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Bridging Visa](https://ilaglobalconsulting.com/bridging-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Visa On Arrival](https://ilaglobalconsulting.com/visa-on-arrival/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Visa Kitas Extensions](https://ilaglobalconsulting.com/visa-kitas-extensions/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Virtual Office](https://ilaglobalconsulting.com/virtual-office/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Alcohol Licence](https://ilaglobalconsulting.com/alcohol-licence/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Address Mutation](https://ilaglobalconsulting.com/address-mutation/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Vat NPWP Registration](https://ilaglobalconsulting.com/vat-npwp-registration/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Tax Declaration](https://ilaglobalconsulting.com/tax-declaration/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Single Entry Visit Visa](https://ilaglobalconsulting.com/single-entry-visit-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Single Entry Visa](https://ilaglobalconsulting.com/single-entry-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Residency Certification sktt](https://ilaglobalconsulting.com/residency-certification-sktt/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Notary Assistance](https://ilaglobalconsulting.com/notary-assistance/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Additional Immigration Services](https://ilaglobalconsulting.com/additional-immigration-services/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Passport Mutation](https://ilaglobalconsulting.com/passport-mutation/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Accounting Services](https://ilaglobalconsulting.com/accounting-services/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Multiple Entry Visit Visa](https://ilaglobalconsulting.com/multiple-entry-visit-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Multiple Entry Visa](https://ilaglobalconsulting.com/multiple-entry-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [kitas kitap](https://ilaglobalconsulting.com/kitas-kitap/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [KITAP Permanent Stay](https://ilaglobalconsulting.com/kitap-permanent-stay/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Indonesian Passport Help](https://ilaglobalconsulting.com/indonesian-passport-help/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Due Diligence](https://ilaglobalconsulting.com/due-diligence/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Dual Nationality Affidavit](https://ilaglobalconsulting.com/dual-nationality-affidavit/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Our Services](https://ilaglobalconsulting.com/our-services/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Visa & Immigration](https://ilaglobalconsulting.com/visa-immigration/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Accounting & tax in Indonesia](https://ilaglobalconsulting.com/accounting-tax-in-indonesia/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Company registration in Indonesia](https://ilaglobalconsulting.com/company-registration-in-indonesia/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Indonesia](https://ilaglobalconsulting.com/indonesia/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Our consultants](https://ilaglobalconsulting.com/our-consultants/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Insights & blog](https://ilaglobalconsulting.com/insights-blog/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Free Guides](https://ilaglobalconsulting.com/free-guides/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [FAQ](https://ilaglobalconsulting.com/faq/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Real estate & property](https://ilaglobalconsulting.com/real-estate-property/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Legal services in Indonesia](https://ilaglobalconsulting.com/legal-services-indonesia/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Local Company (PT PMDN)](https://ilaglobalconsulting.com/local-company-pt-pmdn/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Foreign Investment Company (PT PMA)](https://ilaglobalconsulting.com/foreign-investment-company-pt-pma/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Global page](https://ilaglobalconsulting.com/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [About Us](https://ilaglobalconsulting.com/about-us/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Retirement Visa - E33F](https://ilaglobalconsulting.com/retirement-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Second Home KITAS - E33](https://ilaglobalconsulting.com/second-home-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Spouse Visa - E31A](https://ilaglobalconsulting.com/spouse-kitas/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Single Entry Pre-Investment Business Visa - C12](https://ilaglobalconsulting.com/single-entry-pre-investment-business-visa-c12/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Single Entry Business Visa - C2](https://ilaglobalconsulting.com/single-entry-business-visa-c2/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Multiple Entry Pre-Investment Business Visa - D12](https://ilaglobalconsulting.com/multiple-entry-pre-investment-business-visa-d2/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Multiple Entry Business Visa - D2](https://ilaglobalconsulting.com/business-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Remote Worker visa  - E33G](https://ilaglobalconsulting.com/remote-worker-visa/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Working KITAS](https://ilaglobalconsulting.com/working-kitas/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Investor KITAS](https://ilaglobalconsulting.com/investor-kitas/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Visa Service](https://ilaglobalconsulting.com/visa-application-agency-bali-indonesia/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Thank You](https://ilaglobalconsulting.com/thank-you/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Representative Office](https://ilaglobalconsulting.com/representative-office/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Thank You Newsletter Submissions](https://ilaglobalconsulting.com/thank-you-newsletter-submissions/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Blog](https://ilaglobalconsulting.com/blog/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are
- [Contact Us](https://ilaglobalconsulting.com/contact-us/): Insights Guidance from the ground Practical analysis on business, tax, property and immigration across our markets — written by the people who handle it every day. SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More No posts found SKTT for KITAS Holders: Registration, Requirements and Deadlines in Indonesia The SKTT (Surat Keterangan Tempat Tinggal) is a population-registration document for foreigners holding... Read More Insurance for Expats in Indonesia: Why You Should Get Covered Early Insurance in Indonesia follows its own rules, and many expats are

## Optional

- [Agent (MCP protocol)](websites-agents.hostinger.com/ilaglobalconsulting.com/mcp)

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