Minimum Shares Ownership of Investor for Obtaining a Limited Stay Permit

“Investors which willing to obtain a Limited Stay Permit must have minimum shares in the Company in regard to obtain a Limited Stay Permit (KITAS).”

According to Regulation of Ministry of Law and Human Rights No. 29 of 2021 concerning Visa and Stay Permit (“RMoLHR No. 29/2021”), Stay Permit is defined as a permit which granted to a Foreigner by an Immigration Officer or a Foreign Service Office either manually or electronically to be in Indonesia. One of a kind for Stay Permit namely Limited Stay Permit or Izin Tinggal Terbatas. The definition of ITAS itself is a permit granted to foreigners to live and be in Indonesia for a limited period of time.

Based on Article 72 of RMoLHR No. 29/2021, Limited Stay Permit can be given to foreigners which consist of:

1. Foreigners in the framework of investment;
2. Working as an expert;
3. Perform duties as a clergyman;
4. Participate in an education and training;
5. Conduct scientific research.

Limited Stay Permit can be given to foreigners in the maximum period of 5 (five) years, 2 (two) years, 1 (one) year, 180 (one hundred and eighty) days or 90 (ninety) days.

In this article, we will specifically convey below regarding the Limited Stay Permit for Investor.

Characteristic of an Investor Stay Permit

Any Investor which willing to apply for a Limited Stay Permit in Indonesia are required to obtain for a Visa of Limited Stay Permit or Visa Izin Tinggal Terbatas first. In Article 31 of RMoLHR No. 29/2021, the issuance of Limited Stay Permit is carried out by an immigration officer that appointer by the Directorate General of Immigration. The process of granting the Visa of Limited Stay Permit can also be done upon arrival by a designated officer at certain immigration checkpoints. Visa of Limited Stay Permit is granted for a maximum stay of 180 (one hundred and eighty) days.

As stipulated on Article 73 para. (1) of RMoLHR No. 29/2021, foreigners which enter Indonesia with a Visa of Limited Stay Permit are given an Entry Sign by an immigration officer at the immigration checkpoint. Entry Sign is valid as a temporary Limited Stay Permit for a period of 30 (thirty) days. In regard to obtain a Limited Stay Permit, foreigners must submit an application to the Head of the Immigration Officer no later than 30 (thirty) days after the Entry Sign has issued.

Based on Article 34 of RMoLHR No. 29/2021, Visa of Limited Stay Permit for investors is submitted to the Immigration Officer through an application by attaching:

1. Immigration Guarantee deposit proof;
2. Valid Passport with a requirement of:
3. The shortest which 12 (twelve) months for those who will do work in the territory of Indonesia for a maximum period of 180 (one hundred and eighty) days;
4. A minimum of 18 (eighteen) months for those who will work or live in the territory of Indonesia for a maximum period of 1 (one) year; or
5. At least 30 (thirty) months for those who will work or live in Indonesian territory for a maximum period of 2 (two) years;
6. Proof of having living expenses for himself and/or his family while in Indonesia of at least USD 2,000 (two thousand US dollars) or equivalent;
7. Evidence of insurance ownership in an insurance company incorporated in Indonesia which includes health financing while the foreigner is in Indonesian territory;
8. 2 (two) recent color photographs with a size of 4×6 cm with a white background; and
9. Letter of recommendation from the competent authority in the field of investment.

Converting from the Visit Stay to the Investor Stay Permit

In the condition that, the Investor does not yet have a Limited Stay Permit but has a Visit Stay Permit, then the Investor must first have a Visit Stay Permit and then transfer the status from a Visit Stay Permit to a Limited Stay Permit. In Article 83 of Regulation of the Investment Coordinating Board No. 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities (“Regulation of ICB No. 4/2021”), the recommendation to change the status of a visit stay permit to a limited stay permit is a requirement to obtain approval to change the status. The recommendation is given to foreigners as shareholders who serve as directors or commissioners or shareholders who do not serve as both positions.

In Article 83 para. (3) of Regulation of ICB No. 4/2021, shareholders whom can get this recommendation must meet the following criteria:

1. As a shareholder and serving as a director or commissioner of the Company with the provision that share ownership is at least IDR 1 billion or the equivalent in United States dollars stated in the deed; or
2. As a shareholder and not as a director or commissioner of a company with the provision that the share ownership is at least IDR 1,125 billion or the equivalent in United States dollars stated in the deed.

If approved, the recommendation becomes a Limited Stay Permit and is issued no later than 3 (three) days after receipt of a complete and correct application.

Procedure for Investor to Obtain Stay Permit

According to Article 77 of RMolHr No. 29/2021, a Limited Stay Permit is submitted based on an application and submitted no later than 30 (thirty) days from the date of Entry Sign or Tanda Masuk is given. The submission is implemented through an application by attaching:

1. Valid Passport which contains an Entry Sign; and
2. Guarantee letter from guarantor.

Furthermore, according to Article 79 of RMolHR No. 29/2021, the investor also needs to attach:

1. Proof of immigrations guarantee deposit in lieu of a letter of guarantee from the guarantor; and
2. Investment recommendation letter from the investment institution (if needed).

This requirement also applies in the condition that the Investor willing to apply for a Limited Stay Permit through a status change from a Visit Stay Permit to a Limited Stay Permit as stipulated on Article 167 of MoLHR No. 29/2021.

Based on Article 221 of MoLHR No. 29/2021, Investors do not need a guarantor so that the guarantee letter can be replace with proof of immigration guarantee deposit.

In conclusion, any investor which willing to submit a Limited Stay Permit should obtain their Visa first namely Visa for Limited Stay Permit or Visit Stay Permit that can be change to Limited Stay Permit through the immigration office. However, the investor will need minimum shares in regard to require a Limited Stay Permit namely: IDR 1 billion if the Investor are served as a Director or Commissioner while IDR 1,125 billion with non-served both positions.

Author: Naomi Catherine Felencia

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