Corporate Immigration 2024 Comparisons

The Indonesian immigration policy is designed to safeguard the interests of the local workforce by prioritising the employment of foreign experts only when their skills cannot be readily found among Indonesian nationals. These foreign professionals are mandated to impart their expertise to local counterparts during their tenure in Indonesia.

In response to the challenges posed by the COVID-19 pandemic and beyond, Indonesia has undertaken significant reforms in its immigration procedures. This includes the digitalisation of application processes and the introduction of new visa categories. These measures aim to streamline application processes while expanding visa options for foreign individuals. Through these updated immigration policies and visa schemes, the Indonesian government anticipates attracting a broader pool of foreign talent, including investors, thereby fostering increased investment inflow into the country.

Expansions in Permissible Activities for Business Visitors

Foreign citizens are now permitted to engage in additional business-related activities while visiting Indonesia as business visitors. These activities include conducting field surveys and feasibility studies for initiating a business venture. Authorities have authorised the use of specific visas for pre-investment purposes. There are two visa options available.

• Single Entry Visit Visa Index C12.
• Multiple Entry Visit Visa Index D12.

New Visa Types Based on Purpose of Visit/Stay and Sponsorship Category

The visa application process in Indonesia has been streamlined to align with the purpose of each visit, simplifying both the visa type and the application process. The following are the latest additions to the available visa types in Indonesia.

• Visa Exemption (Indexes A1-A4).
• Visa on Arrival (Indexes B2-B4).
• Single Entry Visit Visa (Indexes C1-C22B).
• Multiple Entry Visit Visa (Indexes D1-D17).
• Limited Stay Visa (Indexes E23-E35).

Additionally, Indonesia has introduced a new visa classification, known as the Golden Visa, which can be valid for five to ten years. This visa is designed for foreign nationals intending to stay in Indonesia for investment purposes, as a second home, for retirement, as world figures, or for specialised expertise.

Furthermore, effective April 2024, the immigration authorities have announced a new visa option for foreign nationals intending to stay in Indonesia while working remotely for their overseas company. This new visa, called the Remote Worker Visa, is valid for one year and can be extended.

New Immigration Procedure by Online System

As per the recent directive issued by the Ministry of Law and Human Rights, as detailed in Regulation number 22 of 2023 regarding Visas and Stay Permits, the immigration authorities have introduced an enhanced website for visa applications on 9 January 2024. Consequently, companies are required to migrate their accounts from the old system to the new one in order to continue their visa application processes.

Adjustment on Documents Requirement and Minimum Number of Shares for Investors Visa Application

According to the prevailing regulations set forth by the Ministry of Law and Human Rights, investors are mandated to possess a minimum of IDR10 billion (approximately USD652,000) or its equivalent in shares. Failure to meet this share ownership requirement necessitates foreigners intending to invest and hold director or commissioner positions to apply for a valid work permit from the Ministry of Manpower.

More Flexibility on Sponsorship of Visa/Stay Permit

Under specific circumstances, the updated regulations enable foreign nationals to act as sponsors for their own visa or stay permit applications, eliminating the previous necessity of having a local sponsor or guarantor in certain visa application scenarios.

On 23 April 2024, immigration authorities officially launched a brand-new type of visa called a Bridging Visa. This initiative seeks to streamline the visa transition process for foreign residents in Indonesia seeking a new visa. Essentially, the Bridging Visa serves as a temporary measure to bridge the gap between the expiration of the previous permit and the issuance of a new one. The introduction of the Bridging Visa policy marks a notable advancement in facilitating a more seamless visa transition experience for foreign nationals navigating Indonesia’s visa procedures. The implementation of this visa will commence on 3 May 2024, as per the Directive outlined in Regulation No 11 of 2024 by the Ministry of Law and Human Rights, which pertains to the amendments to Regulation No 22 of 2023 regarding Visas and Stay Permits.

Foreign individuals aiming to work and reside in Indonesia have the option of selecting between two categories of work and stay permits, contingent upon the duration of their assignment and role. These categories are delineated as follows:

• Long-Term Work Permit – valid for 7 to 12 months, with the possibility of extension up to five times, totalling six years.
• Short-Term Work Permit – valid for 1 to 6 months and not subject to extension. Any further extension requires the applicant to apply for a new work permit.

To legally work and/or engage in work-related activities in Indonesia for Indonesian companies, foreign individuals are required to secure a Work Permit and/or Stay Permit sponsored by an Indonesian company. The Indonesian Immigration Law does not include provisions for unsponsored work arrangements.

There are the following investment permit options available.

• Individual investors who intend to establish a company in Indonesia:
1. Investor Visa (Type E28A) – 2 years’ validity. The foreign investor is required to invest at least IDR10 billion in the form of paid-up share capital in the local Indonesian company.
2. Investor Visa (Type E28B):
1. Five years’ validity – the investor is required to furnish a declaration committing to invest a minimum of USD2.5 million as paid-up share capital in the Indonesian company. Additionally, they must present evidence of turnover/sales exceeding USD25 million from overseas companies, as demonstrated in audited financial statements adhering to international standards.
2. Ten years’ validity – the investor is obliged to furnish a declaration affirming their commitment to invest a minimum of USD5 million as paid-up share capital in the Indonesian company. Additionally, they are required to demonstrate turnover/sales exceeding USD50 million from overseas companies, as evidenced by audited financial statements meeting international standard.
• Individual investors who do not intend to establish a company (Type E28C):
1. Five years’ validity – the investor needs to present evidence of acquiring Indonesian government bonds or mutual funds totalling a minimum of USD350,000.
2. Ten years’ validity – the investor is required to furnish evidence of purchasing Indonesian government bonds or mutual funds amounting to a minimum of USD700,000.
• Second Home (Type E33) – five years’ validity:
1. The foreign individual is required to provide a declaration committing to maintaining funds in an account under their own name at an Indonesian state-owned bank, amounting to a minimum of USD130,000.
2. Alternatively, the foreign individual must furnish a declaration committing to purchasing property in the form of condominiums or apartments in Indonesia, valued at no less than USD1 million.

Foreign visitors’ activities will be subject to limitations based on the type of business visa they possess. Typically, foreign business visitors in Indonesia are prohibited from engaging in any work-related activities or receiving compensation. They are not permitted to:

• spend more than four hours per day and three days per week visiting the office or client’s office;
• work in a private room or have a designated desk – during office visits, they must remain in a meeting room;
• engage in hands-on work activities, such as operating machinery or producing tangible reports;
• offer any advisory services, as this constitutes consulting work and necessitates a work permit;
• sign any company documents;
• present themselves as permanent employees of the Indonesian entity – they should use a visitor tag and only utilise visitor attributes, not those of an active employee; and
• wander around sites, factories or plants – authorities may interpret this as engaging in unauthorised work activities if foreign visitors are found outside the office meeting room.

The Indonesian Directorate General of Immigration recently introduced a visa tailored for remote workers, termed as the Visa Index E33G – Remote Worker Visa. This visa allows foreign nationals to stay in Indonesia for one year, with the possibility of extension, and permits self-sponsorship. It enables them to work remotely from Indonesia, provided there is no affiliation between their employer and any Indonesian company, branch or client. Additionally, they are barred from working for or receiving payment from individuals or entities in Indonesia.

Previously, remote work existed in a legal grey area in Indonesia, lacking regulation. Consequently, there was uncertainty regarding its permissibility for foreign nationals. Several key points should be considered before applying for this visa.

• Foreign nationals who previously held a Work and Stay Permit sponsored by an Indonesian company are discouraged from applying for the remote worker visa. This is because Immigration Officers may assume they will continue working with Indonesian entities, which could have been covered by the Work and Stay Permit.
• It is advisable for remote workers to reside in tourist areas like Bali, Lombok, Sumba, etc, as these are hubs for nomadic/remote workers and align with the visa’s intended purpose of remote work for foreign companies.
• Staying in remote or business areas such as Sumatera or Kalimantan is not recommended, as Immigration Officers might presume involvement with Indonesian entities, potentially requiring an Indonesian Work and Stay Permit instead.
• The Dependent Visa for Remote Workers has not been introduced by the Directorate General of Immigration yet.

According to Indonesian regulations, companies are obligated to provide Indonesian language education and training for foreign workers holding long-term work permits. However, certain individuals, such as members of the Board of Directors and Commissioners, Head of Representative Offices, and those with short-term work permits, are exempt from this requirement. The Ministry of Manpower has specified that foreign workers must obtain a language training certificate from an authorised institution. Currently, the Ministry has not enforced the Indonesian language requirement, and it remains uncertain whether or when this will occur in the future. Historically, the international business community in Indonesia has strongly opposed the language requirement. The Indonesian government aims for equitable treatment regarding the use of the Indonesian language, encouraging all stakeholders and companies to understand and utilise Indonesian for official communication, including interactions with government authorities. In cases where language barriers arise, translators can be utilised.

During the pandemic, presenting a medical certificate or proof of COVID-19 vaccination was mandatory for obtaining a visa or immigration clearance in Indonesia. However, this requirement has been rescinded, and it is no longer obligatory, unless specifically requested by the company for internal purposes.

In order to submit an application for a Work and Stay Permit, it is necessary to furnish evidence of professional skills recognition, typically through certificates or documents. These credentials should be pertinent to the proposed job position. The requisite skills qualifications include:

• Possession of a degree certificate, with at least a bachelor’s degree, and/or relevant skilled/training certificates.
• Accumulation of a minimum of five years of work experience and/or training certificates relevant to the role.

The following aspects, while not stipulated in regulations, are based on internal policies set by the Ministry of Manpower:

• For long-term assignments lasting between 7 to 12 months, the Ministry of Manpower generally requires the company to demonstrate employment of 5 to 10 Indonesian workers for every foreign worker.
• Typically, authorities request a minimum salary of USD2,000 to ensure adequate coverage of living expenses in Indonesia.

Work permits and stay permits must be sponsored and applied for by an Indonesian company, which must be either a limited liability company or a representative office. Typically, other forms of companies are not authorised to hire foreign workers.

Prior to the entry of a foreign worker into Indonesia, the sponsoring entity must apply for the following documents:

• Feasibility Assessment and Approval of Expatriate Placement Plan (Hasil Penilaian Kelayakan – RPTKA) – this initial application must be submitted to the Ministry of Manpower. It typically takes approximately 10–15 working days for this document to be processed.
• Attestation of RPTKA (Pengesahan – RPTKA) – this follows the first stage and needs to be submitted to the Ministry of Manpower. It serves as the final document for the working permit of a foreign worker in Indonesia. Processing time for this document is around 7–8 working days.
• Electronic Visa (E-Visa) – the processing time for this visa is approximately 7–8 working days until it is issued and can be utilised for travel to Indonesia.

After submitting a visa application, it is recommended that foreign nationals refrain from entering Indonesia using any other type of visa while their application is being processed. This precautionary measure is crucial to prevent any complications or interruptions in the visa application procedure. Adhering to this guideline ensures compliance and helps avoid potential delays or issues.

There is no fast track or expedited option for the visa application in Indonesia’s jurisdiction.

After the issuance of the E-Visa, foreign nationals are allowed to travel to Indonesia within 90 days from the date of issuance of the E-Visa. Upon arrival in Indonesia, they will undergo biometric verification at the immigration checkpoint at the airport. Subsequently, they will be provided with stickers affixed to their passports, indicating their stay permit (ITAS) and re-entry permit (MERP).

A few days following the receipt of the stay and re-entry permit stickers in their passports, foreign nationals will receive an electronic limited stay permit (E-ITAS) sent to their registered email address by the immigration authorities. If, for any reason, the stay permit (ITAS) and re-entry permit (MERP) cannot be issued through the immigration system, foreign nationals must report to the local immigration office, and their original passport will be retained by the immigration officer during the process.

Upon completion of immigration formalities, local registration must be submitted to the relevant government authorities, as outlined below:

• Local Police Office – to obtain a Police Report (Surat Tanda Melapor).
• Local Civil and Registry Office – to obtain a Temporary Residence Permit (Surat Keterangan Tempat Tinggal).
• Local Manpower Office – to obtain an Existence Report (available only in some cities).

The government fees for new work and stay permit applications are as follows.

• Manpower Skill and Development Government Fund (DPKK) – USD100 per month.
• ASTAKA health insurance for short-term work permit:
1. One month – IDR762,000.
2. Three months – IDR1.715 million.
3. Six months – IDR2.477 million.
• E-Visa – USD150.
• Stay Permit and re-entry permit:
1. (1–6 months) – IDR1.8 million.
2. (7–12 months) – IDR2.7 million.

While it is uncommon, individuals have the option to bear the expenses for an employment visa. However, even if an individual chooses to cover the costs, these expenses are generally regarded as part of the employer’s overall sponsorship responsibilities. This ensures that the visa process and its associated costs remain consistent with the official sponsorship agreement between the employer and the employee.

The authorities will take enforcement measures against individuals and/or sponsors under the following circumstances.

• Failure to promptly report any changes in civil status, citizenship, occupation, guarantor/employer, or address.
• Failure to present and provide travel documents or stay permits upon request by immigration officers for immigration control purposes.
• Providing inaccurate information or failing to fulfil obligations as a foreign national or guarantor.
• Illegally entering Indonesia with an invalid visa or document.
• Intentionally creating, using or altering documents for entry, exit or stay within Indonesian territory.
• Misusing stay permits for purposes other than their intended use or engaging in activities not aligned with the permit’s purpose.
• Deliberately providing false letters, information or data to obtain a visa or gain entry or stay within Indonesian territory.
• Concealing, sheltering, providing housing, sustenance or employment opportunities to foreign nationals known or reasonably suspected to be residing illegally in Indonesian territory and/or whose stay permits have expired.

As an employer of foreign workers in Indonesia, there are specific obligations that must be adhered to, failure to comply with which may lead to sanctions and penalties as outlined in the regulations.

• Fines – these penalties are imposed on employers of foreign workers who violate the following provisions.
1. Not possessing a work permit issued by the Ministry of Manpower.
2. Employing foreign workers without a work permit while they are currently employed by other employers.
3. Employing foreign workers in technology-based and vocational start-up companies without a work permit exceeding a maximum period of three months.
• Temporary suspension of foreign workers’ work permit process – this sanction is imposed on employers of foreign workers who breach the following provisions.
1. Failing to provide Indonesian language education and training for foreign workers.
2. Not enrolling foreign workers in the National Social Security programme for those employed for a minimum of six months or in an insurance programme provided by Indonesian incorporated insurance companies for those employed for more than six months.
3. Failing to annually report to the Ministry of Manpower regarding the utilisation of foreign workers, the implementation of co-labour education and training, and the transfer of technology and knowledge from foreign workers to co-labour.
4. Not reporting the utilisation of foreign workers under temporary work permits to the Ministry of Manpower after the termination of employment agreements.
5. Not reporting the termination or conclusion of employment agreements for foreign workers before the agreed-upon employment period ends.
6. Failing to make the required fine payment within the maximum period of two weeks.

Revocation of foreign workers’ work permit – this sanction is imposed on employers of foreign workers who violate the following provisions.

• Employing foreign workers not in accordance with the issued work permit.
• Employing foreign workers with multiple job titles within the same company.
• Employing foreign workers for personnel positions (Human Resources Division).
• Not paying DPKK for every employed foreign worker.
• Failing to fulfil the obligations outlined in the temporary suspension criteria within the maximum period of three months.

To verify a foreigner’s eligibility to work in Indonesia, both the corporate documents of the sponsoring company and the personal documents of the foreign individual must be comprehensive and meet the minimum standards established by the Ministry of Manpower and Immigration.

Corporate Documents

Limited Liability Company

• Deed of Establishment along with the related Decree of the Ministry of Law and Human Rights.
• Deed of Amendments along with the related Decree of the Ministry of Law and Human Rights.
• Location permit/Domicile Letter/Company Building’s Lease Agreement.
• Tax Identification Number (Tax ID).
• Business Registration Number (NIB) issued by OSS system (Online Single Submission).
• Business Licence issued by OSS system (Online Single Submission).
• Mandatory Manpower Report (WLTK).
• Company organisation chart indicating expatriate name and position which will be applied in the company.
• ID Card/KTP, Family Card, Tax ID, and Company Badge of the authorised person of the Company who is authorised to sign any related immigration matters – eg, Director or HR Manager.
• Company Profile issued by Ditjen AHU – this document is not applicable if the Company has obtained/registered visa online account.
• Suitability of Space Utilisation Activities (PKKPR – Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang) issued by OSS system – this document is not applicable if the company has obtained/registered a “manpower online account”.
• User ID and Password of Ministry of Manpower.
• User ID and Password of Directorate General Immigration.
• User ID and Password of Online Civil Registration Office if the residence permit (SKTT) will be applied in Jakarta.
• Additional documents:
1. for long-term work permit (7–12 months, Non-Director Level) – ID Card/KTP of the Indonesian worker who is appointed by the authorised person of the sponsor company as counterpart of the employed expatriate, job title, job description, photo, curriculum vitae and highest education degree).
2. for work permit as Director or Commissioner – Deed of Appointment and Decree of Minister of Law and Human Rights as Director or Commissioner.
3. if the work location of the foreign worker is in more than one city – Company Domicile Certificate or Co-operation Agreement or Project Contract or Purchase Order with another company for additional work location in the work permit.

Representative Office

• Letter of Appointment (LOA) of Establishment Representative Office.
• Letter of Intent (LOI) of Establishment Representative Office.
• Letter of Statement (LOS) of Establishment Representative Office.
• Tax Identification Number (Tax ID).
• Location permit/Domicile Letter/Company Building’s Lease Agreement.
• Business Registration Number (NIB) from OSS system (Online Single Submission).
• Business Licence of Foreign Representative Office issued by OSS system (Online Single Submission).
• Mandatory Manpower Report (WLTK).
• Company organisation chart indicating expatriate name and position which will be applied in the company.
• ID Card/KTP, Family Card, Tax ID, and Company Badge of the authorised person of the Company who is authorised to sign any related immigration matters – eg, Chief Representative or Local HR.
• User ID and Password of Ministry of Manpower.
• User ID and Password of Directorate General Immigration.
• User ID and Password of Online Civil Registration Office if the residence permit (SKTT) will be applied in Jakarta.
• Additional documents:
1. for long-term work permit (7–12 months, Non-Director Level) – ID Card/KTP of the Indonesian worker who is appointed by the authorised person of the sponsor company as counterpart of the employed expatriate, job title, job description, photo, curriculum vitae and highest education degree).
2. if the work location of the foreign worker is in more than one city – Company Domicile Certificate or Co-operation Agreement or Project Contract or Purchase Order with another company for additional work location in the work permit.

Personal Documents From Foreign Nationals

Main applicant

• Passport of foreign nationals, minimum validity at least 18 months and 3–4 blank visa pages.
• Digital photograph of the foreign nationals with size of 4cm x 6cm and red background.
• Health/travel insurance from the insurance company (for a long term of 7–12 months).
• ASTAKA insurance from local consortium insurance company (for a short term of 1–6 months).
• Curriculum Vitae and Resume.
• Reference letter from current and/or previous employer, indicating at least five years of work experience.
• Bank statements in the last three months with a minimum balance of USD2,000 (can be provided by the Indonesian company).
• Highest education degree (ie, bachelor’s degree or master’s degree).
• Employment Agreement of the Foreign Nationals from Indonesian sponsoring entities.
• Plan of Residential Address in Indonesia (ie, Hotel/Apartment).

Family members

• Passport of wife and children – minimum validity at least 18 months and 3–4 blank visa pages.
• Marriage Certificate (for wife).
• Birth Certificate (for children under 18 years old).
• Photograph of wife and children.

All documents must be in Bahasa Indonesia, English or accompanied by a certified English translation.

The requirements for obtaining a dependent visa are as follows.

• The spouse must be from a legally recognised marriage.
• Children:

1. Typically, children above the age of 18, even if unmarried, are not eligible as dependents. However, exceptions may apply for foreign nationals under guardianship (due to disability or similar circumstances).
• Parents:

1. can join their biological child who is an Indonesian citizen aged 21 years or older; and
2. can join their biological child holding either a Limited Stay Permit (ITAS) or a Permanent Stay Permit (KITAP).

These criteria specify who qualifies for a Dependent Visa based on their familial relationships and legal statuses. It is important to note that Indonesia only acknowledges family relations with legally married opposite-gender partners.

Individuals with a Dependent Visa in Indonesia are prohibited from engaging in any form of employment, including receiving payment or compensation from individuals or companies within Indonesia. Therefore, dependents must secure separate work authorisation sponsored by an Indonesian company if they wish to work in the country.