Though the US-China trade war has slowed down the global economy and impacted the economy in Indonesia, the investment outlook in Indonesia in 2019 remains positive. It is estimated that Indonesia’s economy will grow at a rapid pace with a growth rate of 5.3-5.4% in 2020. Furthermore, the positive outlook is evidenced by investors participating in major projects in Indonesia since the first quarter of 2019. There is no denying that the investment climate remains great for foreign investors. One of the significant contributors is the government’s efforts to simplify investment process through various policy changes, including the Presidential decree no. 20/2018 on Investor KITAS in Indonesia.
Indonesian Investor KITAS offers major benefits, with the most attractive ones include the ease of application and the waiver of work permit fee. If foreign investors were required to pay a hefty fee of USD 1,200 per year, this is no longer the case with an Investor KITAS, provided that they satisfy all the investment requirements. Moreover, foreign investors do not need to wait for months to start working after pouring their initial investment.
With that being said, Investor KITAS is now an appealing option to many investors who are interested in investing in the country. Read on to know more about Indonesian Investor KITAS.
In Indonesia, investor KITAS can be categorised into two:
Both types allow investors to enter and leave Indonesia multiple times within the permit’s specified validity, which is usually based on the validity of your passport.
As an investor, you are required to have a minimum investment of IDR 1 billion in invested shares to be eligible for an investor KITAS. Furthermore, the invested capital of the company has to be over IDR 10 billion.
A newly established company will be able to sponsor the investors upon receiving the business registration number (Nomor Induk Berusaha – NIB) and business licenses (Izin Usaha). For businesses that are already up and running, you need to apply for all necessary licenses through Online Single Submission (OSS).
To know more, learn the Implementation of Online Single Submission (OSS) System in Indonesia.
As previously mentioned, one of the greatest advantages of an investor visa is its ease of application without the tedious procedure and the expensive fee for work permit.
To summarise, the new process of getting an investor KITAS is as follows:
Upon request, Cekindo can provide you with more detailed information on the required documents and application procedure.
From our perspective and through years of experience in handling KITAS applications, the best option would be to cancel your working KITAS. This option is a much faster way if you cannot wait to hold an investor KITAS. The process of KITAS convertion takes approximately 2 months, while your investor KITAS can be issued within 2 weeks (14 working days).
According to the BKPM of Indonesia, a director of a company on an investor KITAS can work as long as the following criteria are satisfied:
However, a different condition applies to a commissioner of a company. According to our inquiry to the Ministry of Manpower, a commissioner can work with Investor KITAS. However, if you as investor expect to take a very active role in your company business, we highly recommend you to position yourself as the main director or the second director. In general, a commissioner is expected to have a less active role and involvement in the daily operations of the company.
Get in touch with us should you require any assistance from us. Our visa and legal experts can assist you in applying for your investor KITAS. We will be with you every step of the way.
Fill in the form below or visit our offices in Jakarta, Bali and Semarang.