“There is no denying that the investment climate in Indonesia attracts foreigners to invest in Indonesia. Thus, an investor must have an investor stay permit to stay and maintain the business in Indonesia.”
As a developing country with abundant natural resources and rising economic growth, Indonesia offers excellent opportunities for foreign investors to invest. Therefore, many foreign investors come to Indonesia to stay and make an investment.
Foreign investors are categorized as foreigners who hold a certain number of shares in an Indonesian limited liability company (PT Penanaman Modal Asing); thus, foreign investors are obliged to have an investor stay permit (Investor ITAS) to stay in Indonesia.
The Difference between an Investor KITAS and a Work KITAS
The difference between the Work Permit KITAS is that Investor KITAS do not need to apply for a work permit as they will not be considered as an employee; therefore, investor ITAS holders are not required to pay for the DKPTKA (Development Funds in Exchange of Hiring a Foreign Worker) of USD 1,200.
Index of The Investor KITAS
Foreigners who hold an Investor KITAS have a lot of benefits, different from the ordinary KITAS, which only have a validity maximum for 1 (one) year. While there are two types of Investor KITAS, namely the C313 and C314, the only difference between C313 and C314 is that C313 is valid for one year, whereas C314 is valid for two years and both types are extendable for up to five years.
Hold a Position as a Director or Commissioner
Suppose the investor holds a position as a Director or Commissioner stated in the Articles of Association of the Company. In that case, they are required to have a minimum investment of IDR 1 billion shares to be eligible for an investor KITAS/ITAS. If the investor does not hold a position as a Director or Commissioner, they must have a shares minimum of IDR 1,125 billion.
Converting the Investor KITAS to the Investor KITAP
Besides ITAS for workers and ITAS for investors, another stay permit for foreigners is KITAP. KITAP or Kartu Izin Tinggal Tetap (Permanent Stay Permit) is valid for 5 (five) years, and after five years, if there are no changes to the status of the expatriate, it can be extended.
Foreign investors who hold investor stay permits are eligible to apply for ITAP after receiving a recommendation letter from BKPM (Badan Koordinasi Penanaman Modal/Indonesian Investment Coordinating Board). The recommendation letter can be given to a foreigner with the following qualification;
- An investor who take a position as director or commissioner with a minimum investment of IDR 1 billion or equivalent in US Dollars and stated in the Articles of Association of the Company; and
- Investor who did not take position as director nor commissioner with minimum investment of IDR 10 billion or equivalent in US Dollars and stated in the deed of establishment.
The benefit of holding a KITAP is you do not have to go back and forth to the immigration office every year to renew your stay permit because it is valid until 5 (five) years; besides that, there are many more advantages, such as:
- Driver’s license (SIM) with a validity of five years;
- Non-Consuming Loan;
- MERP with a validity of two years, allowing you to enter and exit the country as you like.
Author: Sutria Puti Dwirahayu
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