How to Obtain Investor’s KITAP in Indonesia

KITAP is a permit granted to certain foreigners to reside and settle in the Indonesian Territory as Indonesian residents, valid for five years and extendable. One of the foreigners who can submit a KITAP is a foreign investor. KITAP can be given if a foreign investor is a shareholder who also serves as a Director or Commissioner with a shared ownership of at least IDR 1 billion and for a foreign investor who does not serve as a Director or Commissioner with a shared ownership of at least IDR 10 billion.

General Definition of KITAP in Indonesia

In an attempt to invite more investors to come and invest in Indonesia, the government has initiated a simplification of immigration procedures for foreign investors who will invest in Indonesia, including facilitating the issuance of Permanent Stay Permits for investors that meet the requirements. Before we discuss the requirements needed to apply for a Permanent Stay Permit (ITAP/KITAP), it is important to first understand what a permanent stay permit is. Based on Article 1 Point 19 of the Regulation of the Minister of Law and Human Rights Number 29 of 2021 (MoLHR 29/2021) regarding Visas and Stay Permits, a permanent residence permit is explained as a permit granted to certain foreigners to live and settle in the Indonesian Territory as Indonesian Residents.

In the Regulation of the Investment Coordinating Board Number 4 of 2021 (Perka BKPM 4/2021) concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities, it is explained that foreign investors are given the ease of service and/or permits for immigration facilities given after receiving a recommendation from a government institution that administering government affairs in the field of investment, which means the Investment Coordinating Board (BKPM). The recommendation letter is a recommendation to change the status of a limited stay permit to a permanent residence permit for foreign investors.

Investment Requirements in Submitting KITAP for Investors

In the case of an investor’s permanent residence permit, there are several additional requirements to obtain the permit. These requirements are contained in Articles 199 and 200 of MoLHR No. 29/2021 which regulates the requirements for investors before obtaining a permanent residency permit. For investors who are also management of the company, it is mandatory to attach:

1. Recommendation letter from an authorized government institution in investment containing investment participation of at least IDR 1 billion or equivalent in US dollar currency
2. Limited Stay Permit which shows that the person concerned has stayed for more than 3 (three) consecutive years
3. Deed of establishment of the company containing the position of Foreigner.

Furthermore, for investors who are not management of the company, they must attach it:

1. Recommendation letter from an authorized government institution in investment which includes investment participation of at least IDR 10 billion or equivalent in US dollars
2. Limited Stay Permit which shows that the person concerned has stayed for more than 3 (three) consecutive years.

General Requirements in submitting KITAP for Investors

In order to obtain a permanent residence permit, in addition to fulfilling the criteria described above, there are several conditions and documents that need to be submitted to obtain the permit. An application for a transfer of KITAS status to an KITAP must be submitted by a foreigner, guarantor or person in charge to the Head of the Immigration Office or an appointed Immigration Officer with a working area which also includes the residence of the foreigner. The KITAP application for foreign investors must be submitted through an application by attaching the following:

1. A valid national passport
2. residence certificate
3. Declaration of integration
4. The foreigner’s limited stay permit
5. letter of guarantee from the guarantor or proof of deposit of immigration guarantee
6. identity card and family card of the guarantor or responsible person
7. Permanent Stay Permit in terms that the guarantor or responsible person is a foreign national.
8. Limited Stay Permit which shows that the person concerned has stayed for more than 3 (three) consecutive years
9. letter of recommendation from a government institution that regulated investment which includes investment participation
10. deed of establishment of the company containing the position of Foreigner (for foreign investors who also serves as a management company)

Requirements for Letter of Recommendation from the Investment Coordinating Board

Based on Perka BKPM 4/2021 it is explained that a recommendation letter is needed from a government institution that administers government affairs, which means BKPM. The recommendation letter is a requirement for obtaining approval to change the status of a limited stay permit to a permanent residence permit. This recommendation letter is divided into foreigners as shareholders who serve as directors or commissioners of the company and foreigners as shareholders who do not serve as directors or commissioners of the company.

The recommendation letters are given to foreign investors who meet the following criteria:

1. as a shareholder and serves as a director or commissioner of the company with the provision that shares ownership is at least IDR 1 billion or the equivalent in United States dollars stated in the deed
2. as a shareholder and not as a director or commissioner of a company with the provision that shares ownership is at least IDR 10 billion or the equivalent in United States dollars stated in the deed.

KITAP Validity Period

Once issued, ITAP is valid for 5 (five) years, with 2 (two) years of multiple entry permits, and can be extended indefinitely as long as the license is not canceled. For an ITAP extension, the foreign national must report to the Immigration Office every 5 years, an application for an ITAP extension can be submitted no earlier than 3 months and no later than 1 (one) month before the ITAP period ends. Even though ITAP can be extended for an unspecified time, it does not rule out the possibility that the validity period of ITAP can end with certain conditions. Provisions that can end the validity period of ITAP if:

1. leaving Indonesian Territory for more than 1 (one) year or not intending to re-enter Indonesian Territory
2. do not extend the period of Permanent Stay Permit after 5 (five) years
3. obtain citizenship of the Republic of Indonesia
4. the permit is canceled by the Head of the Immigration Office or the appointed Immigration Officer
5. subject to deportation action
6. passed away

If one of the above conditions occurs, the validity period of the residence permit still ends. In addition, there are also provisions that will result in the revocation of the permanent residence permit, if the holder:

1. Proven guilty of committing a crime against the state as stipulated in the applicable laws;
2. Perform acts that endanger the state security;
3. violating the integration statement;
4. employ foreigners without a work permit;
5. providing false information in submitting an application for a permanent residency permit;
6. the foreigner is subject to immigration administrative action;
7. terminate the marriage relationship of a foreigner who is legally married to an Indonesian citizen, due to divorce and/or based on a court decision, except for marriages that are 10 (ten) years and over.

Author: Adam Kausar

Do you need a legal assistance and/or further discussion in obtaining of your KITAP?

Let’s contact us through:

WhatsApp Hotline: 0812-1111-8608

Email: info@ylpconsulting.com

Our experienced Consultant will be delighted to assist you.