The Indonesian government recently introduced amendments to the Investor KITAS regulations (PERMENKUMHAM no. 22 Year 2023 about Stay Permit/ Visa to Indonesia) aimed at refining foreign investments in the country. The most significant change involves a tenfold increase in the required investment amount for foreign investors engaging in Foreign Direct Investment (PMA) companies. Formerly set at 1 billion Indonesian rupiah, the new threshold now stands at a minimum of 10 billion rupiah per person, elevating the investment bar for eligibility.
This policy shift strives to elevate investment quality and bolster the national economy by attracting more substantial foreign investments. The government anticipates that larger capital influxes will substantially contribute to Indonesia’s economic advancement.
Key Amendments in the Regulation
The updated regulations necessitate additional documents, including evidence of a minimum share ownership of Rp10,000,000,000.00, a Ministerial Decision concerning the company’s establishment, and the company’s recent bank statements over the past two months. However, it’s worth noting that the Indonesian Government currently still accepts two-year Investor KITAS with a minimum company shares of Rp1,000,000,000.00, valid until further notice.
Requirements for Obtaining the Latest Investor KITAS in 2023
Apart from the revised investment threshold, several other prerequisites must be acknowledged under the 2023 Investor KITAS regulations:
- Limited Stay Visa Application: Foreign nationals aspiring to become investors must apply for a Limited Stay Visa, allowing a maximum two-year stay. Applications are submitted by the foreign national or sponsor through designated Immigration Officers.
- Supporting Documentation: Essential documents include a valid national passport, sponsorship evidence, proof of living expenses during the stay, recent photographs, and other documents affirming the purpose of the visit.
- Cost of Living Amount: This amount is specified by the Director General and ensures the foreign national’s sustenance throughout their stay in Indonesia.
- Shareholding Value: The share ownership value is set at 10,000,000,000 Indonesian rupiah. This value may undergo revisions following consultations with pertinent ministries or agencies.
- Shareholding Requirements: In scenarios where the stipulated shareholding criterion isn’t met, foreign nationals engaged in capital investment activities can apply for a Limited Stay Visa for employment under labour regulations.
Understanding Investor KITAS
Investor KITAS, a category within the KITAS (Limited Stay Permit Card), grants temporary residence for foreign nationals aiming to engage as investors in Indonesian companies. This designation offers diverse benefits, facilitating foreign investment and market access while extending residence periods.
Advantages of Investor KITAS
Investor KITAS entails several advantages:
- Backing Investment: Encourages foreign investment in Indonesia.
- Market Access: Facilitates closer interaction with the local market.
- Prolonged Stay: Allows extended stays of up to two years.
- Shareholders’ Rights: Grants official positions in Indonesian PMA companies.
Navigating through these regulatory changes demands adept legal advice. Tax-Indo offers seasoned consultancy to navigate and comprehend these amendments accurately. Contact Tax-Indo for expert guidance on investing in Indonesia.
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