Investor KITAS – benefits and application
Introduction to the Investor KITAS (Index 313 & 314)
As we start 2019, those that are currently financially vested in Indonesia have seen numerous positive sentiments, indicating that the investment climate in Indonesia is significantly improving. One of these sentiments comes in the form of the Presidential decree no.20/2018, which offers significant benefits to Investors residing in Indonesia – The Investors VITAS or commonly known as KITAS Investor.
In this article, I will be providing a general overview, including a walk-through of the application process for the Investors KITAS.
There are two index codes of Investors KITAS; the 1 year KITAS (Index 313) has a validity of 12 months, and the 2 year Investors KITAS (Index 314). The duration granted will be based on your passport validity – with a 30 month validity you will be granted a two year VITAS. Both the 1 year and 2 year option come with multiple exit and re-entry permits.
The major benefits of the Investor’s KITAS is the ease of application and the waiver of the cumbersome (and hefty) work permit fee of US$1200 per year. Prior to this, Investors had to wait months on end, after making their initial investment, before being allowed to work.
In previous years, it was necessary for an Investor to apply for a Working KITAS (Index code 312), along with a working permit which costs US$1200/year. Working permits are no longer necessary for Investors that meet Investment requirements.
Do you qualify for an Investor KITAS?
Before an Investors KITAS can be obtained, an investor should first have a minimum value of 1 billion rupiah in shares invested in a Foreign Investment Company. The company’s authorized capital should exceed 10 billion rupiah, and there should be a minimum of 25% of its authorized capital paid up. For companies that were set up prior to 2009, a lower capital investment is possible.
The 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 NIB and Company licenses through the newly introduced Online Submission System (OSS).
How to apply for an Investor KITAS?
Step 1 of applying for an Investors KITAS is to obtain a recommendation letter from the Investment board in Jakarta. To apply for this recommendation, you will need to bring along a signed application letter by a company’s representative, passport, company’s documents, and the ID card and tax number of the company’s representative. An appointment should be scheduled a day before your intended date of submission.
Applications are reviewed on a case by case basis, and a successful application can take up to 14 days to be approved. 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. I highly recommend checking with your Embassy before heading there. Upon receiving your VITAS at your respective Embassy, you will have 90 days to enter Indonesia.
Once you’ve entered Indonesia, the final steps of converting your Investor VITAS to an Investor KITAS will take a further 10-14 working days, do bear in mind you will need to initiate the process within 7 days of arrival. During the application process you will not be 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 the process, you will receive your New Investor KITAS which allows you to live and manage your company in Indonesia.
If you are currently holding a Working KITAS (Index 312),you have the option of cancelling your current KITAS, applying for an Investors KITAS or applying for a change of KITAS type within Indonesia.
Many investors opt for canceling their current KITAS as the process for change of KITAS can take over 2 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 of Jakarta, and Immigration offices in Bali confirm this frequently asked question – a Director is able to work and manage all aspects of the 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. At present, a Commissioner on an Investors KITAS is not permitted to work. However, an appeal can be submitted to the Manpower agency for further considerations.
Investor KITAS costs
A 1 year Investor KITAS costs IDR 14 million/per person, and a 2 year Investor KITAS costs IDR 19.5 million/per person. The fees include the recommendation letter needed from the Jakarta Investment board, multiple exit and re-entry permits, Immigration processing fees, a police registration and a domicile card for 1 year. Additional Embassy fees apply when picking up your visa abroad.
With attractively low tax tariffs and strong economic growth, it is easy to see why investors are steadily flocking to Indonesia to invest in 2019. CCI looks 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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