Investor Stay Permit (Investor ITAS)
Under certain conditions, investors can apply for an Investor Stay Permit (Investor ITAS) in Indonesia. Investors are categorized as foreign individuals who hold a certain amount of shares in an Indonesian limited liability company (PT PMA), as further explained below. The investor permits have a validity period of 12 months up to 24 months.
The main advantage of the investor permit is that under certain conditions they are allowed to work in Indonesia, without the need to apply for a work permit. This means that investors are not required to pay the monthly fee of USD 100.00 to the Foreign Manpower Compensation Fund (DKPTKA or also know as DPKK).
Under certain conditions Investors can obtain an Investor ITAS valid for up to 24 months.
Who can apply for the Investor Stay Permit (Investor ITAS)?
Investors who are eligible for an Investor Stay Permit must meet any of the following criteria:
- The investor holds a minimum of 1 billion Rupiah in shares in an Indonesian limited liability company (PT PMA) and serves concurrently as director or commissioner in the same company. This type of investors is allowed to work as director or commissioner in Indonesia, without the need for a work permit; or
- The investor holds no position as director or commissioner in the company, but holds a minimum of 1.125 billion Rupiah in shares in the company. These investors are not allowed to perform work activities in Indonesia and are only allowed to reside in Indonesia.
Investors who do not fulfill the requirements above are unable to apply for the Investor ITAS. Depending on their activities in Indonesia, they will need apply for a regular 1-month work permit, short term work permit or long term work permit. If they are not holding a director or commissioner position and are only performing business meetings in Indonesia, then a business visa may be sufficient.
What are the advantages of an Investor Stay Permit (Investor ITAS)?
Investor Stay Permit has the following advantages:
- Shareholders are able to apply for stay permit. This type of stay permit is specifically designed for shareholders of a limited liability company in Indonesia. Especially shareholders who are not concurrently holding a director or commissioner position in the same company, are unable to apply for a regular stay permit (ITAS), as they are not considered to be working in Indonesia.
- No work permit required. Investors who are also active as director or commissioner are not required to apply for a work permit at the Ministry of Manpower. Therefore they are exempted for the payment of Foreign Manpower Compensation Fund (DKPTKA or also know as DPKK) in the amount of USD 100.00 per month.
- Streamlined application process. Since no work permit is required, Investors can immediately apply for their stay permit at immigration. Regular stay permits can only be applied for after the work permit is issued.
As the recommendation letter from BKPM (the investment authority) is no longer required, the application for Investor ITAS has become quicker to process. In order to obtain a an investor permit, the company and foreign investor are required to apply for several licenses at various government bodies. The application procedure can be roughly spit up in 2 steps, immigration and local licenses A detailed description of the permits and reports in each step can be found at the general overview of work permit and stay permit.
For the investor who are eligible for an Investor ITAS, the procedure is as follows:
Step 1: Investor Stay Permit from Immigration
- Telex VTT (Limited Stay Visa). The sponsoring company of the foreign investor will need to apply for a Telex VTT at the Directorate General of Immigration.
- VTT (Limited Stay Visa). Once the Telex VTT has been issued, the foreign investor must collect the VTT visa sticker from the preferred Indonesian Embassy abroad. It is important to note that collection requirements differ per Indonesian Embassy, so it is important to check the collection requirements prior to collection.
- After obtaining the Limited Stay Visa (VTT) at the respective Embassy, the foreign investor may enter Indonesia within 90 days since the date of visa collection.
- e-ITAS (Stay Permit) and MERP (Re-entry Permit). Once the foreign investor enters Indonesia, they must convert the visa to the Investor ITAS at immigration office manually within 30 days since the date of entry into Indonesia. During the application of investor stay permit, the foreign investor must attend a biometric session at the Immigration office and the passport will be retained for a period of up to 10 working days.
Step 2: Permits issued by local authorities
Once the ITAS of the investor is issued, the following local registrations need to be arranged. These can usually be applied for in the background, and no attendance of the investor will be required. Moreover there are no travel restrictions during the applications.
- Police Report (STM) from the local police office.
- Certificate of Temporary Residence (SKTTS) from the civil registration office.