Indonesia’s growing economy presents exciting possibilities for foreign investors. To empower entrepreneurship and attract foreign capital, the government offers the Investor KITAS (Limited stay permit for investors), a visa specifically designed for business owners. This article explores the Investor KITAS, highlighting its advantages, requirements, and the application process.
The Benefits of Investor KITAS
While the ability to establish or hold leadership positions in a foreign-owned company is a core benefit of Investor KITAS, the temporary stay permit offers additional advantages compared to the regular Working KITAS. Among others are:
1. Extended Validity: Investor KITAS typically holds a two-year validity period, exceeding the regular Working KITAS duration. This extended stay allows for more focused business development and project management.
2. Family Sponsorship: Investor KITAS holders can apply for additional KITAS applications for their dependents, spouses and children. This enables them to relocate their families and have a life in Indonesia.
3. Operational Exemption: Unlike Working KITAS, which ties residency to a specific employer, Investor KITAS grants independence. This specific type allows the holder to reside and work in Indonesia without a separate work permit. Thus, they are exempt from the monthly contributions to the Development Funds in Exchange of Hiring a Foreign Worker (DKP-TKA or Dana Kompensasi Penggunaan Tenaga Kerja Asing).Â
Investment Options for Investor KITAS
The minimum investment requirement for Investor KITAS is IDR 10 billion (approximately USD 650,000). This investment can be fulfilled through various means:
1. Direct Capital Injection: A direct investment into the company’s capital or shares is the most common method.
2. Alternative Investments: In some cases, property or equipment purchases within Indonesia may qualify as part of the investment.
3. Phased Investments: Negotiating a phased investment plan with authorities may be possible, spreading the investment amount over a specific timeframe.
4. Government Incentives: The Indonesian government may offer reduced investment thresholds for specific industries or locations to attract foreign investment in those sectors.It’s advisable to research any applicable incentives before finalizing your investment strategy.
Company Requirements for Investor KITAS
Not all companies can sponsor an Investor KITAS. Here are some key considerations:
1. Legal Status: The company must be a legally registered entity in Indonesia.
2. Financial Standing: A healthy financial track record and sufficient operational capacity are crucial for successful company sponsorship.
3. Documentation: The sponsoring company will need to provide various documents during the application process, including business licenses, registration certificates, and bank statements as the proof of financial stability.
Investor KITAS Application Process
Obtaining an Investor KITAS in Indonesia involves several steps. First, you’ll need to establish your company and acquire the necessary licenses to operate legally. Gather all the required documents, including your personal documentation, proof of investment, and any additional documents mandated by the authorities.
With everything compiled, you can then submit your application electronically through the Online Single Submission (OSS) system. Once your company is set up, you can secure sponsorship from them to proceed with the investor KITAS application.
Renewal Process for Investor KITAS
It’s crucial to initiate the renewal process for your Investor KITAS before the current one expires. The specific requirements and timelines may vary, but generally involve:
1. Renewing Company Sponsorship: Ensure your sponsoring company remains eligible and willing to sponsor the renewal.
2. Maintaining Investment: The minimum investment amount typically needs to be maintained throughout the validity period of your KITAS.
3. Updated Documents: Submit updated versions of documents like your passport and company registration.
4. Potential Changes: Investment requirements or company conditions may change over time. Stay informed about any updates that might impact your renewal eligibility.
Avoid Confusion and Complications
Indonesia’s Investor KITAS paves the way for a rewarding entrepreneurial journey. By securing your investor KITAS, you have the convenience to manage your business, reside in Indonesia, and potentially bring along your family too.
Ready to start this exciting venture? Seven Stones can be your trusted partner throughout the Investor KITAS application or renewal process. We can assist you with the company setup as well. Our team of experts will handle the complexities, ensuring a seamless experience that frees up your valuable time. Avoid the confusion and complications of going through every legal procedure on your own. Contact Seven Stones Indonesia today to discuss everything you need to start your investment.Â
