“Foreign Citizen as a Director/Commissionaire who is also a shareholder at the same time is now no longer obliged to obtain Expatriate Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing / “RPTKA”) and Notification as a basis for the Limited Stay Permit / Permanent Stay Permit issuance.”
Investor and Shareholder:
Investor is a person or an institution which comes from Indonesia or Foreign Country that perform an investment activity for long or short term period to gain profit. However, unlike the shareholder, investor does not have access and power in using assets and company management.
Shareholder is a person or a legal entity that legally owns one or more share in a company. Shareholder has special rights depends on the specification of their share, including right to vote in a Board of Director’s voting. Unlike investor, shareholder has access and power in using company assets.
It is certain that becoming an investor and also a shareholder that is written in the Company’s Article of Association will give many benefits and ease for doing business in foreign direct investment company.
Ease of doing business for the Investor who is also a Director/Commissionaire in Foreign Company:
1.No obligation to obtain RPTKA
According to Article 10 Presidential Regulation No. 20 of 2018 on Utilization of Expatriate regulates that the employer of expatriate has no obligation to obtain RPTKA to employ the expatriate who is a shareholder and also a Director or Commissionaire in the company of the employer.
2.No obligation to obtain Notification
Another advantage that is explained in the Director General of Immigration Instruction related to the Amendment of Immigration Stay Permit Requirement for Limited Stay Permit and Permanent Stay Permit Holder is that for the foreign citizen who works as Director/Commissionaire that is also a Shareholder has no obligation to obtain RPTKA. Therefore, Ministry of Manpower will also not issue the Notification as the basis for Limited Stay Permit/Permanent Stay Permit issuance.
3.No Need to Pay DPKK in the amount USD 100/Month
As for the obligation to obtain Notification is no longer existed, therefore the foreign citizen will not obliged to pay the Mandatory Development Fund (DPKK) in the amount of US$100 per month.
Therefore, without the RPTKA and Notification, the process for obtaining stay permit in Indonesia will become more efficient and save more time.
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