Investor KITAS – benefits and application
Introduction to the Investor KITAS (Index 313 & 314)
As 2018 comes to an end, those who are currently financially vested in Indonesia have seen numerous positive sentiments that could convince them to loyally keep investments within the country. The Presidential decree no.20/2018 offers significant benefits to Investors residing in Indonesia, one positive outcome in particular is the Investor KITAS.
This article aims at giving you an overview of a general overview, including a walk-through of the application process for an Investor KITAS.
There are two types of Investor’s KITAS; the INDEX 313 has a validity of 12 months, and the INDEX 314 has a validity of 24 months. Every Investor’s KITAS come with multiple exit and re-entry permits. The biggest benefit is the ease of application and the bypassing of work permit procedures and fees. Previous to this, investors had to wait months on end, after making their initial investment, before being allowed to work.
Prior to October 2018, it was necessary for Investors to apply for a Working KITAS (Index code 312), along with a working permit which costs US$1200/year. Working permits for Investors have since been abolished, and will only be applicable for expatriate staff.
Do you qualify for an Investor KITAS?
Before an Investors KITAS can be obtained, an investor should have a minimum of 1 billion rupiah in shares invested. In addition the company’s capital should exceed 10 billion rupiah. Your company can start sponsoring Investors once it has obtained a business registration number (NIB) and trading licenses (Ijin Usaha). For an existing business, it takes around 2 weeks to obtain the necessary licenses through the newly introduced Online Submission System (OSS).
How to apply for an Investor KITAS?
To start your Investor KITAS application, you will have to fill out a set of formal requests in writing to the investment board in Jakarta. In addition, you will also need to submit a copy of your passport and copies of your company’s documents. An appointment should be scheduled a day before your intended date of submission.
Applications are reviewed on a case by case basis, and as this newly implemented visa, the overwhelming response from applicants a successful application can take up to 30 days. Once a recommendation by BKPM is issued, the next step is to apply for a VITAS (or commonly known as a TELEX).
A TELEX visa will be issued to an Indonesian Embassy abroad of your choice. It is a good idea to contact the Embassy prior to your visit, as there are often varying rules and regulations that may affect your Investor KITAS application. The estimated duration of the Investor KITAS process depends on your Embassy. Do check before processing! After receiving your VITAS you will have 60 days to enter Indonesia.
Once you’ve entered Indonesia, the final step of processing your Investor V-ITAS to an Investor KITAS will need to start within 7 working days. During the application process the KITAS applicant is not allowed to work. Once your passport is submitted to an Immigration office closest to your place of residence, you will need to attend a photo and fingerprint session and wait for the final steps of completion. After 10-14 working days, you will receive your New Investor KITAS which allows you to live and manage your company in Indonesia.
As the Investor KITAS has only recently been implemented, there are not yet any indications if this KITAS can be extended, however we believe the procedures to extend will follow in the coming weeks. If you are currently holding a Working KITAS (Index 312), then you have the option of cancelling your current KITAS, applying for an Investors KITAS or applying for a change of KITAS. Many investors opt for canceling their current KITAS as the process for change of KITAS can take up to 2.5 months. Working KITAP holders will also need to change over to Investors KITAP as there are no options to extend associated Working Permits (IMTA) as of October 2018.
Can one work with an Investor KITAS or Investor KITAP?
The investment board and Immigration offices in Bali confirm this frequently asked question – an Investor is able to work and manage his or her business in Bali with this KITAS, as long as the scope of work aligns with the company’s scope of business and fair opportunities are offered to locals to earn a living.
Investor KITAS costs
A 1 year Investor KITAS costs IDR 12,8 million/per person and a 2 year Investor KITAS costs IDR 17,8 million/per person. There are no work permit fees to pay as an investor, and all fees quoted include Government fees and a Multiple exit and re-entry permit. Additional Embassy fees apply when you pick up your TELEX visa abroad.
Costs include the recommendation from the Investment Board, TELEX visa costs, KITAS application fees and Domicile letters for the investor.
With attractively low tax tariffs and strong economic growth, it is easy to see why investors are steadily flocking to Indonesia to invest in 2018. We look forward to assisting you further with your Investor KITAS / Investor KITAP application.
Not an Investor? Read more about the Working KITAS process here.
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