Indonesia employment and residence visas
All immigration to Indonesia is controlled by the federal government through the Department of Immigration and Citizenship (DIAC) in Jakarta. The Indonesian government does not encourage employment of expatriates, instead jobs are usually reserved for local residents only. Any employment offered to a foreigner must absolutely be necessary for local company operations. To support the engagement, Healy Consultants will assist our Client with all immigration matters:
- Following Indonesia company formation, the entrepreneur visa will be approved if i) the foreign entrepreneur has a successful track record of managing companies ii) the business in Indonesia will benefit the country’s economy;
- A foreign entrepreneur who wishes to relocate to Indonesia to run his company must first submit a Foreign Manpower Utilization Plan to the authorities. The Plan outlines his position in the company, the duration of his term, details of other foreign employees etc. Thereafter the entrepreneur obtains a Visa for Limited Stay from the Indonesian embassy or Consulate in his country of residence. Upon arrival at Indonesia, he applies for the Limited Stay Permit and a Work Permit in order to stay in Indonesia.
- Employees receive Indonesian work permits known as KITAS. All work permit applications are processed in Jakarta and usually take 1 month for the authorities to approve or reject an application;
- The applicant provides a considerable number of documents to the authorities including i) the company’s business license letter ii) locality letter iii) tax number iv) company structure v) bank account statements vi) character and professional references vii) employment contract and viii) resume. The foreign employee visits the Indonesian embassy or consulate in their home country to obtain the final valid Indonesia visa. Once the foreign professional arrives in Indonesia, they must report to the immigration department within 7 days from arrival and complete the necessary paperwork and formalities.
Short term visit visas
Entrepreneurs frequently visiting Indonesia need a Multiple Entry Business Visa (MEBV). The MEBV is valid for 12 months and you can stay for 2 months at a time. A MEBV does not entitle you to work in Indonesia.
Migrate to Indonesia
International business people and entrepreneurs, migrate to Indonesia with Healy Consultants’ straight forward and comprehensive relocation services. Our immigration services include:
- Assistance obtaining Indonesia employment and residence visas from the Indonesian Immigration Office. Healy Consultants helps entrepreneurs and their families of all nationalities obtain permits allowing them to migrate to Indonesia, live and work there. Our fees to assist your Firm to secure work permits is US$3,950 for the first employee, US$2,950 for the second employee, US$1,950 per employee thereafter;
- Examples of Indonesia visas available to international entrepreneurs and business people include i) the KITAS card (grants residency for for the working expatriate and each dependent for a one year period.) ii) Permanent Stay Visa (KITAP) (only for directors in companies, with a director position held for a minimum of 5 consecutive years and foreign spouses of Indonesian citizens) and iii) a Service Visa (DINAS), (these are given to foreign citizens bearing service passports, on assignment to Indonesia for diplomatic purposes. Furthermore, Healy Consultants assists Clients to obtain Dependent’s Visas for family members;
- To support the visa application, Healy Consultants prepares a comprehensive business plan detailing our Client’s proposed business activities in Indonesia, a market analysis and financial projections, and a convincing outline of reasons for migration to Indonesia;
- Healy Consultants offers personalised orientation programmes for international entrepreneurs planning migration to Indonesia. Typical programmes include introductions to banks to open personal bank accounts, visits to key points of business interest in the neighbouring countries around Indonesia, as well as tours of commercial and residential property (see also point 5 below), international schools (see also point 6 below), social clubs and recreational facilities. In summary, Healy Consultants offers a one-stop service for migrating to Indonesia;
- Prior to or following Indonesia immigration, Healy Consultants guides Clients through all aspects of renting or buying a property in Indonesia, including in Jakarta, Bali, Solo, Sumatra, Sulawesi, and Kalimantan. We arrange property viewings according to Client specifications and budget, provide assistance with the drafting of lease agreements, and arranging for efficient connection of utilities. Furthermore, Healy Consultants provides introductions to Indonesia or international banks (for example in banks in Singapore) to obtain property financing;
- Prior to or following migration to Indonesia, Healy Consultants assists Clients to find suitable schools in Indonesia for their children. Examples of assistance provided includes providing information on international school fees, waiting lists, and curricula;
- Prior to or following migrating to Indonesia, some international entrepreneurs request tailored cross-cultural training programmes covering Indonesia business etiquette and protocols, as well as Bahasa and Chinese language courses. Some Clients request advice on communication, conflict management and negotiation, and sales, and marketing techniques in Indonesia.
Grants and funding programs
Healy Consultants assists our Clients successfully obtain government assistance for Indonesia company formation. Incentives to attract foreign entrepreneurs include:
Regional Tax Incentives for Foreign Investors Interested in Indonesia company formation
On September 23, 2008, the government issued government Regulation (“GR”) No. 62 of 2008 allowing a reduction of corporate tax by 30% of the total investment amount, deducted for 6 years. The business sectors to benefit from this incentive includes coal mining, textile and clothing, oil and natural gas, milk and dairy food, paper, chemical, rubber industries, iron and steel industries, machinery and equipment, land transportation industries, ship and boat building, horticulture development, plastic goods, cement, lime and gypsum industries, Furniture industries.
Integrated Economic Development Zone (KAPET)
Companies doing business in Indonesia’s Integrated Economic Development Zones are also eligible a reduction of corporate tax by 30% of the total investment amount, deducted for 6 years. The application for the facilities is to be submitted to the Directorate General of Taxation. Currently, around 25 areas are designated as KAPETs.
A postponement of import duty and excise and non-collection of VAT for those companies importing goods that will be processed further for further exportation.
Frequently asked questions
How long will an Indonesia visa be issued for business purposes?An Indonesia business visa is issued short-term to entrepreneurs flying regularly into the country. While, this visa will be valid for 12 months, it only allows the entrepreneurs to stay in the country for a continuous period of 2 months.