Residence permits/visas for Indonesia

This article discusses how to obtain an Indonesian temporary (1–10 years) residence permit (ITAS aka KITAS), and permanent residence permit (ITAP aka KITAP), based on new rules from September 2023.

In order to obtain a residence permit the usual route is to obtain a VITAS, which is an ITAS visa, that is to say permission to enter Indonesia in order to become a resident (ITAS holder). This requires:

• Passport valid for six months
• Proof of funds to support your stay in Indonesia —(either $2,000 or $5,000 depending on the visa type)
• Colour photograph
• Either a guarantor, being a letter taking responsibility for your activities from an Indonesian sponsor (individual or company), or an immigration guarantee, which typically takes the form of a statement of commitment to invest certain sums within 90 days. Guarantor and guarantee are mutually exclusive, although some categories allow both types, but with differing requirements.

The means to obtain a VITAS with relevant supporting documents and guarantor/ee details are:

• Work –employer is the guarantor:
  - For an Indonesian company who obtains a work permit for you as a worker: work permit approval. For 180 days/1 year/ 2 years.
  - For an Indonesian company who obtains a work permit for you as expert help: work permit approval. For 180 days/1 year/ 2 years.
  - At sea in Indonesian waters: requires approval from government agency and letter from the operator of the vessel/installation. For 180 days/ 1 year/2 years.
  - As a religious leader (priest, imam, etc.): permit from ministry of religion or from the private agency — for one year.
• By active investment investing in a company in Indonesia, which allows you to serve as a director or commissioner but not do hands-on work, either:
  - By owning 10 billion in shares in an Indonesian foreign investment limited company (PT PMA)
  - By making a statement of commitment to invest $2.5 million in a new company
• By statement of commitment of passive investment for 5/10-year ITAS of a certain sum (amounts vary according to the foreigner’s age, background, etc.) in certain forms (discussed below)
• As a former Indonesian citizen with guarantor for 1 or 2 years
• As a foreigner with special talents/skills with guarantor of the government of Indonesia, and a letter from the GOI stating that they are being invited as a foreigner with special talents. Alternatively a statement of commitment to work for an Indonesian government agency/ministry within 90 days, PLUS certificate of proof of skills in a designated shortage area or proof of graduation (graduate/postgraduate not specified) with GPA 3.5+ from a top 100 global university in the past 3 years.
• As a leading global figure, with guarantor of a central government agency and an invitation letter from the same, for 5 or 10 years.
• As a remote worker who has a work contract with a company outside of Indonesia and whose immigration guarantee is proof of annual income of $60k/year, for 1 year.
• As a pensioner aged 60+ with an income of $3k/month who has a guarantor, who is no longer required to be a travel agency.
• To study — requires guarantor which is the place of study OR an Indonesian citizen, plus a letter from the educational institution explaining the duration of their studies. Issued for either 1 or 2 years.
• To perform research — requires guarantor which is connected to scientific research, and permission letter from relevant government agency. Issued for 1 year.
• As a working holiday for one year
• For medical treatment for one year ITAS with guarantor and letter from the relevant government agency or medical facility stating they are undergoing treatment.
• By familial relationship:
  - As the spouse, child/stepchild (any age) or parent of an Indonesian citizen. Issued for 1 or 2 years.
  - As the spouse, parent, or minor child of the holder of a VITAS, ITAS or ITAP. Issued according to the primary applicant’s duration.

Familial relationship

Documentary requirements are:

• As spouse/child/stepchild of an Indonesian: application letter from the spouse/parent, plus a marriage book/certificate issued in Indonesia, or a report to the Indonesian embassy/consulate of a marriage overseas and a non-English marriage certificate sworn translated into Indonesian, or an English marriage certificate. For children/stepchildren the KK of the Indonesian parent is required, plus the birth certificate (sworn translation into Indonesian if not in English) for stepchildren, or report of birth to embassy/consulate for natural children. For children of Indonesians who are not married, then a court ruling that states that the child has a legal relationship with their Indonesian parent is required instead of the marriage certificate.
• As the foreign parent of an Indonesian child aged 21+: application letter from the Indonesian child, KK of the child, plus the Indonesian/English/sworn translation of the child’s birth certificate showing the parentage, or a court ruling for adopted children or those born outside of wedlock.
• For the spouse or minor child of an VITAS/ITAS/ITAP holder: proof of guarantor/guarantee for said spouse, the ITAS/ITAP of the spouse, and an Indonesian marriage book/certificate, or a foreign marriage certificate in English or translated into Indonesian. For children an English birth certificate or sworn Indonesian translation is also required.

Passive investment (without guarantor) aka ‘golden visa’

Passive investment requirements vary by ITAS category and subcategory but fall into three types, with all figures specified in US$ or the equivalent in another currency (in practice typically rupiah). The categories cannot be mixed, and their validity depends on the specific ITAS/ITAP subcategory:

· Investment in shares in a public listed company, government debt, or public listed company mutual fund (reksa dana) OR

· Bank deposit in an Indonesian government-owned bank OR

· Ownership of an apartment

For visa issuance you must provide a statement of commitment (i.e. a guarantee in lieu of guarantor) which is a letter promising to make the investment within 90 days of arrival. If the commitment is not fulfilled by that time, the ITAS will be cancelled, and you will be given 7 days to leave the country.

The available subcategories for passive investment are:

• ‘Repatriation’, subcategory ‘ex-Indonesian’. A former Indonesian citizen with investment of $15k for a 1-year ITAS, $35k for a 5-year ITAS, as per the regulation. Visa code E32A NEW. However, it appears that only the 5-year is being offered.
• ‘Repatriation’, subcategory ‘descendant of ex-Indonesian’: The child or grandchild of an ex-Indonesian citizen. Investment of $50k for a 5-year ITAS, 10 years with $100k. Visa code E32B NEW
• ‘Second home’, subcategory ‘elderly’. A 60+ year old with income of $3k/month and $50k bank deposit for a 5-year ITAS. Visa code E33E. NEW
• ‘Second home’, subcategory ‘second home’. Either an apartment costing $1 million or a $130k bank deposit for a 5-year ITAS. Visa code E33 WAS: 2 billion rupiah deposit or house/apartment costing from at least 1 until 5 billion rp depending on region.
• ‘Foreign investment’, subcategory ‘investor who does not intend to start a company in Indonesia’. Visa code E28C. $350k in investment for 5-year ITAS. For 10-year ITAS $700k investment or $1 million apartment. NEW

These visas are collectively deemed ‘golden visas’ earning express service at immigration checkpoints and immigration offices, and possibly other government offices as well.

In addition to the 90-day verification, appropriate proof of the continued meeting of the statement of commitment must be supplied annually to immigration for these ‘golden’ categories.

Property ownership

The passive investment categories represent an expansion of the previous iteration of the ‘second home’ ITAS. Previously it was sufficient to obtain a certificate of hak pakai ownership in a house or apartment to qualify under ‘second home’. The requirements to obtain such a certificate are investment of 5 billion rupiah in a house in Java or Bali, 1 billion for most of the rest of Indonesia, and 2 billion in an apartment in Java or Bali, except 3 billion in Jakarta, and 1 billion for most of the rest of Indonesia.

Such a certificate no longer provides any route to residence, except for an apartment costing $1 million+. There is virtually no chance anyone would buy such a property except in Jakarta, and in that case the ITAS would be almost incidental.

Therefore, those who buy property legally in Indonesia, will in almost all cases need to make further investment of some kind, or qualify under some other route to obtain a residence permit.

Active investment

The active investment category is changed from the previous law.

The previous visa law was centred around proof of involvement in a PT PMA, which is a PT (limited company) designated for foreign investment (penanaman modal asing). A PT PMA is required to have fully paid-up capital of 10 billion rupiah, excluding land and buildings, per location and per business activities. For certain property businesses land and buildings may be included.

The incorporation of a PT is done by a notary and then approved by the ministry of law and human rights (parent ministry of immigration) and requires at least one director and a commissioner. There is a new category of a PT recently which can be set up by one Indonesian person, without using a notary. This is not possible for foreigners.

In general company law requires that a company has paid up capital of at least 25% of the authorized capital. Therefore a limited company with 10 billion rp authorized capital could in general have 2.5 billion or more that is paid-up. However for a PT PMA, paid-up capital must also be at least 10 billion, as from 2021 (for new companies). As of 2021 companies are not only required to have 10 billion in capital but also to realize 10 billion in investment, which means that the money is actually spent on rent, plant and equipment, salaries (the salaries for one production cycle count as realized investment), services of contractors, and so on. This can be realized over time, and is reported to the BKPM, who are supposed to cancel PTs’ business licences if they do not comply. However this is weakly enforced.

PMA immigration fraud

As an incentive to encourage foreigners to invest in PT PMAs, previously:

1. The director or commissioner holding at least 1 billion rupiah in shares in a PT PMA could obtain an investment ITAS/ITAP
2. Other shareholders holding at least 1.125 billion in shares can also obtain an ITAS/ITAP.

In view of the above, there were various frauds encouraged by unscrupulous visa agents:

• The paid-up capital can take the form of a statement from the founders that they have paid up the stated capital, and agents would encourage foreigners to commit this fraud.
• PT PMAs that were not doing any business were sponsoring numerous supposed shareholders to get ITAS or ITAP, each supposedly having invested 1.125 billion. The foreigner might in fact be working illegally, just living in Indonesia, etc.

PMA rules from August 2023

As of 2023, the rules now state that investors in a PT PMA must provide:

· Proof from the BKPM of a 10 billion (from 1/1,125 billion) shareholding

· The PT PMA’s incorporation documents

· Two months’ company bank statements

· Guarantor

And get a 2-year ITAS. Director/commisioner shareholders in a PT PMA with less than 10 billion shareholdings are instructed to apply for a work permit ($1200/year), and switch to a work ITAS (or possibly marital?) if they wish to continue in their roles.

As an alternative there is the option of a statement of commitment to set up a company with issued shares or investment value of $2.5 or $5 million or to setup a subsidiary of a foreign company with investment value of $25 (twenty five)/$50 million for a 5/10 year ITAS. They must also provide documentation showing they have a specified shareholding in a company outside Indonesia with a specified turnover based on audited accounts. It is not clear if there is an error in the regulation, as it seems that this should only apply to the subsidiary but is clearly written to apply to both types.

There is a further alternative to make a statement of commitment under the ‘second home’, ‘leading global figure’ subcategory to invest $25 million for a 5-year or $50 million for a 10-year ITAS. It is not clear whether ‘leading global figure’ has any meaning beyond ‘wanting to invest $25 million’, in this case, but likely not.

Issue of ITAS

The ITAS (residence permit) is distinct from the VITAS (entry permit).

Previously the procedure was:

• Enter Indonesia with a VITAS and get a 30-day temporary ITAS in the form of entry stamp
• Proceed to the immigration office within 30 days to get this converted to full ITAS

It appears that this is simplified and the entry with VITAS will directly convert to full ITAS at the immigration checkpoint. In addition a new ITAS can be issued via email in response to change of marital status and so on.

Change from visitor to ITAS holder

It is possible to change from a visit permit that originated from a visit visa (multiple/single entry), but not from VOA or visa waiver. This must be done no longer than 30 days before the visit permit expires.

The requirements are the same as for issue of VITAS, plus:

· Visa & entry stamp or visit permit

· Passport has no minimum validity

· No need to show proof of funds

· Proof of guarantor if applicable

· KTP and/or KK of the guarantor if applicable

It should be possible to change from any visitor visa purpose to a different ITAS purpose, however letters to support change of guarantor might be necessary— see below for details.

Renewal of ITAS

Renewal of ITAS is somewhat simplified in that the procedures are now:

• A 180-day ITAS (for certain workers) can be renewed five times (1080 days total).
• A 1-year or 2-year ITAS can be renewed to six years total validity
• A 5-year ITAS can be renewed once
• A 10-year ITAS cannot be renewed

The requirements to renew an ITAS are the same as for issue of VITAS except:

• Passport is not required to be valid for six months.
• Not required to show proof of living expenses
• ITAS held on basis of statement of commitment require proof it has been met. A long list of proof is given such as three months’ bank statements, shareholding, financial statements, etc.
• Can be renewed between 30 days and the day of expiry for ITAS of up to 1 year in validity, and 3 months and the day of expiry for longer ITAS.

ITAP

There is not a huge difference between being an ITAS and ITAP holder, in that both are residents with tax liabilities. However, an ITAP holder must obtain a KTP and in some cases is given cheaper prices for some services (e.g. admission fees to tourist attractions) than ITAS holders. An ITAS holder must get an SKTT, a more lowly document which has the same function as a KTP, and may be issued for only 1 year rather than a longer period, increasing admin. Recently the foreigner KTP was changed from blue to orange, which highlights the inferior (non-Indonesian status) and makes the KTP somewhat less desirable than before.

In addition, ITAP holding-spouses have stronger legal rights in case of divorce.

ITAPs are issued by change of status from ITAS, for all types of ITAS except:

• Working holiday
• Medical treatment
• Education
• Research
• Expert (but they can be issued to workers in ‘highest management positions’ only)

An ITAP is issued for 5 years, or in accordance with the primary holder’s ITAP for those acquiring ITAP as family of an ITAP holder.

An ITAP can be directly issued to a person who is the newborn baby of an ITAP holder (within 90 days of birth), or who lost their Indonesian citizenship while in Indonesia, as a result of choosing foreign citizenship as a mixed child or through taking foreign citizenship. This will have the category of ‘repatriation’, and requires the proof of loss of citizenship, guarantor, and a signed statement of integration. Ex-Indonesians will have 14 days to apply for the ITAP from losing their citizenship.

Change of status from ITAS to ITAP

A change from ITAS to ITAP requires:

• Same requirements as for VITAS, except no need for proof of living expenses and passport can be valid less than 6 months
• Application made 30 days or more before expiry of ITAS
• Proof of guarantor if applicable
• KTP or KK if guarantored
• ITAP of spouse/child/parent if following an existing ITAP holder
• Proof of meeting the statement of commitment, if relevant, must be provided.

In addition, there are additional eligibility requirements:

• The spouse of an Indonesian must have been married for 2 years to obtain ITAP
• For those in worker, religious figures, investors, and second home category, they must have held their ITAS at least 3 years. For worker ITAS this can also be met by being married to an Indonesian for at least 2 years.
• For ITAS investors who qualified on the basis of 10 billion rupiah in shares in a PT PMA, to obtain ITAP that must be 15 billion
• Worker ITAS holders must be in ‘highest management’ positions to qualify for ITAP.

Renewal of ITAP

An ITAP can be renewed only for an unlimited period. Despite being unlimited, the foreigner must still report every five years to the immigration office. This report consists of valid passport and ITAP, plus for ITAP based on statement of commitment appropriate proof that they continue to meet the requirements of the statement. The report must includes taking a photograph, and must be done 3 months to the day before the five-year reporting period is up.

As for ITAS renewals, an ITAP renewal does not require a passport to be valid for six months, and does not require proof of living expenses. In addition:

• Renewals of ITAP, as with ITAS, require appropriate proof of meeting the statement of commitment, if relevant.

Effect of divorce from an Indonesian citizen on ITAS and ITAP

ITAS issued on the basis of marriage to an Indonesian is considered ‘voidable’ in the event of divorce, and likewise for ITAP, except for ITAP holders married for 10+ years, in which case the ITAP is not voidable due to reason of divorce.

In both cases the foreigner is required to report the divorce to immigration in 60 days. They may submit an application for change of sponsor, which may result in the ITAS remaining valid.

Exit Permit Only

The holder of an ITAS or ITAP, or their guarantor, must report if they wish the ITAS or ITAP to end, in order to regularize their immigration status for further entry to Indonesia.

Re-entry permit

The re-entry permit is the equivalent of a visa for ITAS and ITAP holders.

It is issued for the full length of the ITAS, or for two years for ITAP holders (or till the expiry of the ITAP, if less than two years).

There is a substantial improvement to the re-entry permit for ITAP holders in that an ITAP holder who leaves Indonesia without valid re-entry permit no longer suffers an automatic expiration of their ITAP, and a new re-entry permit can be applied for while overseas.

Guarantors

A guarantor is an Indonesian citizen or company who vouches for a foreigner’s activities and agrees to pay for the expenses of deportation.

A guarantor can be changed:

· For foreign workers showing proof that they have ended their employment

· For foreign investors no longer investing in/directing in a company, or if the company is no longer active

· If the foreigner no longer wishes to be sponsored by the guarantor.

· If the guarantor no longer wishes to sponsor the foreigner

For Indonesian family members (child (age 21+), spouse, parent) they are termed a ‘responsible person’, and do not have the liability to pay for any possible deportation.

Foreigners who provide an immigration guarantee, which is typically a statement of commitment to invest, as per the ITAS/ITAP category, do not have a guarantor. The statement of commitment must be fulfilled within 90 days of the issue of ITAS or ITAP. If it is not, the ITAS or ITAP will be cancelled and the foreigner given 7 days to leave the country.

KITAS vs ITAS and KITAP vs KITAP

The ‘K’ refers to a kartu, the card. In many cases there will be no card, so it makes sense to refer to ITAS or ITAP only. Previously there has been e-ITAS or ITAS elektronik, however in future the immigration products consist of

• ‘virtual’ ITK (visit permit)
• ‘virtual’ ITAS or ‘kartu’ ITAS
• ‘virtual’ ITAS or ‘kartu’ ITAP
• ‘virtual’ re-entry permit

In the case that a ‘kartu’ is issued, this will be done some days after the issue of the initial ITAS or ITAP and can be collected either by the foreigner or their guarantor/responsible person.

Working rights

There is no longer any formal distinction between ITAS and ITAP for work and not for work. In theory all types are open to both work and non-work. In practice this seems to mean that for example the holder of a repatriation or spouse ITAS could get a work permit. Working rights for foreigners are governed by manpower law, which issues the work permits, not immigration, in any case, but this seems to be a reasonable step to acknowledge this fact.

Living expenses

In general you are not required to show you have sufficient income to live in Indonesia to obtain a residence permit - it is sufficient to show a certain sum of savings. The exceptions to this are for the pension visa, which requires an income of $3,000/month, and the remote worker, which requires income of $60k/year.

The savings required to support a VITAS, ITAS or ITAP application are $2,000 for all categories except for those starting a new business, where it is $5,000. Note that where you are subsequently meeting a ‘statement of commitment’ by means of passive investment, then the $2,000 could be ‘reused’, so these living expenses do not represent a significant requirement for most people.

Notes and thoughts

• The PT PMA ITAS has been gutted and will mean that fake PT PMA ITAS holders should be kicked out, but also affects foreigners who own shares in smaller but legitimate PT PMAs. It is somewhat inconsistent with investment law in that a PT PMA having at least two shareholders and 10 billion investment for the whole company, but 10 billion investment per shareholder for the PMA ITAS. There are two consequences: non-director shareholders (holding 1.125 billion+ in shares under current laws) will simply lose their residency (or perhaps try to qualify under some other route), while director shareholders will have to obtain work permits and switch to a working ITAS. As ‘highest leadership’ of their companies they will qualify for ITAP.
• The core ‘second home’ ITAS concept of buying a property to qualify for residence has been destroyed by the $1 million apartment qualification, which is unlikely to interest more than a tiny handful of people.
• The passive investment route requires $350,000 investment for the ‘open’ category, but it is in legitimate investments (shares and funds), not just a bank deposit, so is more attractive — it is perfectly sensible for someone with sufficient assets to buy investments.
• The pension visa is formally restored as a subcategory of ‘second home’, and there is no longer a requirement to use an agent (any Indonesian sponsor), but the age is increased from 55 to 60, and the monthly income from $1500 to $3000. However there is no longer a requirement to use a visa agent, which can be substituted for any sponsor, or by a $50k bank deposit in your own name
• It is now easier for family members of Indonesians to settle in Indonesia
• The ‘remote worker’ visa carries the trap that you declare an income of $60,000+/year, become an Indonesian tax resident (by virtue of being an ITAS/ITAP holder) and then get a large tax bill (there are double taxation treaties which can help, as well as other provisions of tax law which can reduce tax liabilities for income from overseas). For this reason many remote workers are likely to use other ITAS types, or visit visas, and not declare their offshore income.
• All of the $ numbers above can be adjusted by separate pronouncement, so it may be that some get revised.

Fees

Fees are (per September 2023):

You should expect to pay:

• the 500k VITAS fee + 1000/2000k visa verification fee for first application starting from outside of country
• the ITAS or ITAP fee for first applications, change of status and renewals
• the re-entry permit fee for first applications, change of status and renewals
• the 500k change of status fee for change from visit to ITAS or ITAS to ITAP

References

• Ministry of Finance Regulation 9 of 2022 on Immigration fees (old!)
• Ministry of Law and Human Rights Regulation 22 of 2023 on Visas and Stay Permits (this article)
• Government Regulation 28 of 2019, Ministry of Finance Regulation 9 of 2022, and 82 of 2023, covering fees