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Visiting Indonesia with Business Purpose Amidst Pandemic Covid-19

Depending on the type of business purpose, a foreign business traveler either requires a single entry business visa or a work and stay permit (ITAS)

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Entering Indonesia as business traveler

Indonesia government is opening its borders for international business travelers. In circular number 2 of 2022 issued by the Covid-19 taskforce, it lifts the travel ban for nationals of 14 countries. This effectively means that most nationalities can enter Indonesia again for business purposes. These purposes include business meetings with clients in Indonesia, investing or working in Indonesia. Depending on the type of business purpose, a foreign business traveler either requires a single entry business visa, an investor permit or a work and stay permit (ITAS). Foreigner are to date not yet able to enter Indonesia using visa on arrival , visa exemption, or multiple entry business visa.

Business visa for Business meetings

The single entry business visa is the easiest and fastest type of visa to obtain during the covid-19 pandemic. The application process of the electronic visa (e-visa) only takes approximately 7 working days. Once the e-visa is issued, foreigners can directly enter Indonesia. The business visa grants the business traveler a stay of 60 days in Indonesia. After the 60 day period the visa expires, unless the business traveler extends the visa prior to its expiry date. Foreign business travelers can extend their visa for up to 4 times, 30 days per extension.

Business travelers using a business visa are restricted in their activities. They can have meetings with clients at their office, in a meeting room, or outside. However, business travelers cannot:

  1. come to the office more than 4 hours per day and 3 day per week;
  2. have own desk at the office;
  3. do hand work or touches machines;
  4. receive salary/money/facilities from Indonesian entity; and/or
  5. support any business or activities for Indonesian entity.

To avoid problems with immigration or manpower authorities, we strongly advice business travelers to strictly follow above guidelines.

Investor permit for investors in Indonesia

Foreigners can apply for an investor permit (investor ITAS) if they hold a certain amount in shares in an Indonesian limited liability company (PT PMA). There are 2 types of investor visas available to foreign investors, the index C314 and the index C314. Holders of an index C313 visa are granted a stay permit of 12 months. And holders of an index C314 visa are granted a stay permit for up to 24 months.

Foreign investors are eligible to apply for the the investor permit, have the following options available:

  1. Investor, including managing or supervising the company. An investor can choose to own shares in the company (being a shareholder), and concurrently hold the position of director or commissioner in the company. The minimum required amount of investment is IDR 1 billion in paid-up shares in the company. Under an investor permit, the requirement to obtain a work permit is waived. Consequently, investors do not have to contribute to the manpower development fund (DPKK / DKP-TKA).
  2. Investor only. In case an investor will not perform any management or supervision tasks in the company, the investor can obtain an investor permit as shareholder only. In such case, the investor will not be appointed as director or shareholder. Therefore, such investor cannot perform any work activities in Indonesia. The minimum required amount of investment is IDR 1.125 billion in paid-up shares in the company.

The authorized and paid-up capital of the company where the investor is shareholder in must be a least IDR 10 billion. Once the company obtains its business registration number (NIB) and Business License, the company will be eligible to sponsor investor visa for the investor in Indonesia. More information on Foreign Investment Companies in Indonesia.

Working Permit for employees / Foreign workers in Indonesia

If a foreign business traveler intends to work for a project or on a more permanent basis in Indonesia, the company hiring the foreigner must apply for a work permit. After the company obtains the work permit for the foreign worker, they can apply for the working visa and stay permit (working ITAS). The working visa with index C312, validates that the foreigner is staying in Indonesia as foreign worker.

There are 2 ways to obtain a working permit for foreign workers:

  1. Onshore process. The onshore process applies when the foreigner is already in Indonesia. In such case, the foreigner can enter Indonesia using a single entry business visa. Once the foreign is in Indonesia, the sponsor company can start processing the onshore work permit application at the Ministry of Manpower and the stay permit application at the Directorate General of Immigration. It is important to note that the foreigner cannot perform any work activities in Indonesia, until he/she receives the work and stay permits.  

  • Offshore process. In case the sponsor company applies for the work and stay permits while the foreigner is still outside Indonesia, it must apply for an additional recommendation letter. There are 2 types of recommendation letter. Firstly, the recommendation letter from the Investment Authority (BKPM). Secondly, for national strategic projects, the recommendation letter from the coordinating Ministry for Maritime and Investment Affairs (MarVes). After the sponsor company receives the recommendation letter, they can file the work and stay permit application.

With the developing Covid-19 situation in Indonesia, government regulations and requirements are constantly changing. Therefore, for the latest updates or for tailored advice, please reach out to our firm directly.