“The foreign investor who had a position as a Director or Commissioner, but still holding a Director or a Commissioner KITAS, now, you are eligible to convert your current KITAS to the Investor KITAS which have many advantages, such no need to pay a DPKK anymore.”
Based on Article 102 Indonesian Government Regulation Number 31/2013 concerning the Implementation Regulation of Regulation Number 6/2011 concerning Immigration, Limited Stay Visa (VITAS) is given to activities on the work category activities and non-work category activities. One of the non-work activities categories is an investment.
Who are Eligible to Obtain an Investor KITAS?
They are some criteria for the Investor to obtain Investor KITAS as stated by the Indonesian Investment Coordinating Board Regulation Number 5/2019 concerning the Amendment of Indonesian Investment Coordinating Board Regulation Number 6/2018 concerning Investment Licensing Guideline and Procedures and Investment Facilities (“BKPM Regulation No. 5 of 2019”).
As stated in the Article 48 point (3), if the shareholder also play a role as director or commissioner at the company with minimum shares owned is IDR 1,000,000,000 (one billion Rupiahs) or equivalent with United States dollar as mentioned in the deed or as a shareholder who does not play a role as director or commissioner at the company with minimum shares owned is IDR 1,125,000,000 (one billion one hundred twenty five million) or equivalent with United States dollar as mentioned in the deed.
Converting a Director / a Commissioner KITAS to KITAS Investor
Mainly, there are 2 (two) options to choose when you decided to convert a Director / a Commissioner KITAS into Investor KITAS.
1. By submitting the New Limited Stay Permit
Choosing this option means you should arrange the Exit Permit Only (EPO) or Entry Re-Entry Permit (ERP) for renewing a Director / a Commissioner KITAS. This is stated on the Article 53 point (1) Ministry of Law and Human Rights Number 27/2014 concerning Technical Procedures for Granting, Extending, Declining, Revoking and Ending of Visit Stay Permit, Limited Stay Permit, and Permanent Stay Permit and The Exception for Responsibility for Obtaining Limited Stay Permit. After that, you can submit the new stay Permit with applying an Investor KITAS.
2. By converting the Occupation
Based on Directorate General’s Instructions Number IMI.3.GR.01.10-1.0855, for converting the Occupation, the Director or Commissioner shall submit the petition for occupation conversion from a Director / a Commissioner KITAS to Investor KITAS to the Immigration Office, by attaching these documents:
a. Company’s Business Number (NIB) or Principal License of Company from Indonesian Investment Coordinating Board;
b. Updated Business License issued by Indonesian Investment Coordinating Board;
c. Deed of Company Establishment.
Advantages holding the Investor KITAS
There are many advantages of having the Investor KITAS as stated below:
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 investor are not be obliged to pay the Mandatory Development Fund (DPKK) in the amount of US$100 per month.
As for conclusion, to convert the Director / a Commissioner KITAS KITAS into the Investor KITAS, you have two (2) options. Firstly, by submitting the new Limited Stay Permit as it requires you to get the EPO/ERP. Secondly, by occupation conversion. Therefore, without the RPTKA and Notification, the process for obtaining stay permit in Indonesia will become more efficient and save more time.
Having a question regarding converting your Director/Commissioner KITAS to Investor KITAS? Let’s contact us on the following alternatives:
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