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Indonesia’s property market continues to attract foreign interest, particularly in regions like Bali, Jakarta, and Yogyakarta. However, navigating property ownership as a foreign national requires understanding the legal framework established by Indonesian law. This article provides an updated overview of the regulations governing foreign property ownership in Indonesia as of 2025. 1.Legal Framework for Foreign Property Ownership Under Indonesian law, the state holds ultimate control over land, and full ownership rights (Hak Milik) are reserved exclusively for Indonesian citizens. Foreigners are prohibited from owning land outright. However, several legal avenues allow foreign nationals to acquire property rights: • Hak Pakai (Right to Use): Grants foreigners the right to use land for residential or commercial purposes. This right is typically granted for an initial period of 30 years, extendable for 20 years, and renewable for another 30 years, totaling up to 80 years. To qualify, foreigners must hold a valid Indonesian residency permit (KITAS or KITAP) and meet minimum property value thresholds, which vary by region . • Hak Guna Bangunan (Right to Build): Allows foreigners to construct and own buildings on land. This right is available to foreign-owned companies (PT PMA) and is typically granted for an initial period of 30 years, extendable for 20 years, and renewable for another 30 years, totaling up to 80 years . • Hak Sewa (Right to Lease): Enables foreigners to lease land for a specified period. Lease agreements typically range from 25 to 30 years, with options for extension. There is no legal limit on the number of leasehold properties a foreigner can acquire . • Strata Title (Hak Milik atas Satuan Rumah Susun): Foreigners can own apartment units under a strata title. However, this ownership pertains to the unit itself, not the underlying land, which remains under a master title . 2.Omnibus Law and Its Impact on Foreign Property Ownership The Omnibus Law on Job Creation, enacted in 2020, introduced significant reforms to Indonesia’s legal and regulatory landscape, including provisions related to property ownership. Notably, Government Regulation No. 18 of 2021 (GR 18/2021) amended several aspects of land rights, making it easier for foreigners to own property in the country. Key provisions include: • Foreigners and foreign legal entities can now own apartments and landed houses, provided the property meets certain criteria, such as being located in special economic zones, free trade zones, industrial estates, or other economic zones. Additionally, the property must meet minimum price thresholds, which vary by province . • The introduction of electronic land registration services to encourage digitalization of land certificates throughout Indonesia . 3.Procedures for Acquiring Property The process for acquiring property as a foreign national involves several steps: 1.Determine Eligibility: Ensure compliance with residency requirements (holding a valid KITAS or KITAP) and verify that the property meets the necessary criteria (e.g., location in an eligible zone, minimum price). 2.Engage Legal Assistance: Consult with a notary or legal professional experienced in Indonesian property law to navigate the complexities of the acquisition process. 3.Due Diligence: Conduct thorough due diligence to verify the property’s legal status, including checking land titles, zoning regulations, and any encumbrances. 4.Agreement Drafting: Draft and sign the necessary agreements, such as a leasehold agreement or a sale and purchase agreement, in the presence of a notary. 5.Land Registration: Register the property with the National Land Agency (BPN) to obtain the appropriate land title. 4.Considerations and Risks While foreign property ownership is permissible under certain conditions, it’s essential to be aware of potential risks and challenges: • Legal Complexity: The legal framework governing property ownership can be intricate, and non-compliance with regulations can lead to disputes or loss of property rights. • Cultural Sensitivity: Foreign developments that disregard local customs and environmental standards may face opposition from local communities and authorities. • Market Volatility: The Indonesian property market can be subject to fluctuations, and investments may carry risks related to market demand and economic conditions. Conclusion Foreign nationals interested in acquiring property in Indonesia must navigate a complex legal landscape that includes restrictions on land ownership and specific requirements for property rights. By understanding the available legal avenues and engaging with qualified professionals, foreigners can make informed decisions and mitigate potential risks associated with property investments in Indonesia. For personalized guidance and assistance with property acquisition, it’s advisable to consult with legal experts and real estate professionals familiar with Indonesian property laws and regulations.

Indonesia continues to be a prime destination for foreigners seeking to live, work, or invest in Southeast Asia. Understanding the latest regulations for obtaining a KITAS (Limited Stay Permit) and KITAP (Permanent Stay Permit) is crucial for a smooth and legal stay. This guide provides an updated overview of the requirements and processes as of 2025. 1.What Are KITAS and KITAP? • KITAS (Kartu Izin Tinggal Terbatas): A temporary residence permit allowing foreigners to stay in Indonesia for a specified period, typically ranging from 6 months to 2 years, depending on the visa type and purpose of stay. • KITAP (Kartu Izin Tinggal Tetap): A permanent residence permit granted to foreigners who have legally resided in Indonesia for an extended period under a KITAS. The KITAP is valid for 5 years and can be renewed indefinitely. 2.Types of KITAS and Eligibility Criteria As of 2025, Indonesia offers various types of KITAS, each with specific eligibility requirements: 2.1.Work KITAS • Eligibility: Foreign nationals employed by an Indonesian company. • Requirements: A valid work contract, an RPTKA (Foreign Manpower Utilization Plan), and a sponsorship from the employing company. • Duration: Typically 6 months to 2 years, depending on the employment contract. . 2.2.Investor KITAS • Eligibility: Foreign investors establishing or owning a PT PMA (foreign investment company) in Indonesia. • Requirements: Proof of investment, company registration documents, and sponsorship from the PT PMA. • Duration: 1 to 5 years, extendable. . 2.3.Spouse KITAS • Eligibility: Foreign nationals married to Indonesian citizens. • Requirements: Marriage certificate, proof of relationship, and sponsorship from the Indonesian spouse. • Duration: 1 to 2 years, extendable. . 2.4.Retirement KITAS • Eligibility: Foreign nationals aged 55 years and above. • Requirements: Proof of pension or sufficient income, health insurance, and sponsorship from an Indonesian entity. • Duration: 1 year, extendable up to 5 years. . 2.5.Family KITAS • Eligibility: Dependents (spouse and children) of KITAS holders. • Requirements: Proof of relationship and sponsorship from the primary KITAS holder. • Duration: Aligned with the primary KITAS holder’s permit. 3.Transitioning from KITAS to KITAP Foreign nationals holding a KITAS may be eligible to apply for a KITAP under the following conditions: • Work KITAS Holders: After 5 consecutive years of holding a Work KITAS. • Investor KITAS Holders: After 3 consecutive years of holding an Investor KITAS. • Spouse KITAS Holders: After 2 consecutive years of marriage to an Indonesian citizen. • Retirement KITAS Holders: After 4 consecutive years of holding a Retirement KITAS. Note: The application for KITAP must be submitted while the KITAS is still valid, with at least 30 days remaining before expiration. 4.Application Process for KITAS and KITAP 4.1.KITAS Application Process 1.Obtain a VITAS (Limited Stay Visa): Apply through the Indonesian embassy or consulate in your home country or online via the evisa.imigrasi.go.id portal. 2.Enter Indonesia: Upon approval, enter Indonesia with the VITAS. 3.Apply for ITAS (Temporary Stay Permit): Within 30 days of arrival, apply for ITAS at the local immigration office. 4.Receive KITAS: After ITAS approval, the KITAS card will be issued. . 4.2.KITAP Application Process 1.Eligibility Check: Ensure you meet the eligibility criteria for KITAP. 2.Prepare Required Documents: Gather necessary documents, including passport, KITAS, sponsor letter, and other supporting materials. 3.Submit Application: Apply through the local immigration office or online via the evisa.imigrasi.go.id portal. 4.Processing and Approval: The processing time may vary; typically, it takes several months. 5.Receive KITAP: Upon approval, the KITAP card will be issued. 5.Important Considerations • Extensions: KITAS holders must apply for extensions before the permit expires. Extensions are subject to approval and may require additional documentation. • Multiple Entry Re-Entry Permit (MERP): KITAP holders are entitled to a MERP, allowing multiple entries and exits from Indonesia without the need for additional visas. • Work Rights: KITAP holders married to Indonesian citizens may be eligible to work in Indonesia under certain conditions. • Dependents: Dependents of KITAP holders may be eligible for a KITAP under family reunification provisions. Conclusion Obtaining a KITAS and transitioning to a KITAP in Indonesia involves a structured process with specific eligibility criteria and documentation requirements. It’s essential to stay informed about the latest regulations and seek assistance from legal or immigration professionals to navigate the complexities of the application process effectively. For personalized guidance and assistance with your KITAS or KITAP application, consider consulting with immigration experts or legal professionals specializing in Indonesian immigration law.

Indonesia has long been a top destination for digital nomads, thanks to its natural beauty, affordable living costs, and vibrant remote-working community. With tropical beaches, lush jungles, and a rich cultural heritage, Indonesia provides an idyllic setting for remote workers. However, navigating Indonesia’s visa system can be challenging for digital nomads. In this article, we’ll explore everything you need to know about stay permits for remote workers in Indonesia, including the current visa options, how to apply, and the latest regulations for 2025. 1.What is a Digital Nomad Visa? A Digital Nomad Visa is specifically designed for remote workers who are employed by foreign companies or run their own online businesses. Unlike typical work visas, this visa allows individuals to work remotely from Indonesia without needing to be employed by a local business. It gives digital nomads the opportunity to live in Indonesia for extended periods while working for companies based outside the country. . As of 2025, Indonesia is in the process of introducing its Digital Nomad Visa, providing a more streamlined legal framework for remote workers. This visa is expected to make it easier for digital nomads to work legally in the country, offering more flexible terms and benefits than other visa types. . 2.Visa Options for Digital Nomads in Indonesia While the Digital Nomad Visa is still being finalized, there are several visa options currently available for remote workers looking to live in Indonesia. 2.1.Tourist Visa (Visa on Arrival – VOA) The Visa on Arrival (VOA) is the most common visa for tourists visiting Indonesia. It allows a stay of up to 30 days, with the possibility of extending for another 30 days. However, this visa is only suitable for tourists, and working (remotely or otherwise) while on a VOA is not permitted. Therefore, if you are planning to work remotely during your stay in Indonesia, you will need to explore other visa options. . 2.2.B211A Social, Cultural, or Business Visa The B211A Visa is a popular choice for digital nomads, allowing foreigners to stay in Indonesia for up to 60 days. This visa can be extended for an additional 6 months in total, making it an attractive option for those planning to stay longer. It is designed for social, cultural, and business purposes, so while it doesn’t allow for working directly for Indonesian employers, it is suitable for remote workers employed by companies outside of Indonesia. The B211A visa is particularly favored by digital nomads because of its flexibility, but bear in mind that it does not allow you to engage in work that generates income from Indonesian companies. It’s perfect for digital nomads who are working for foreign clients or running online businesses. . 2.3.Digital Nomad Visa Indonesia’s new Digital Nomad Visa is being developed to cater specifically to remote workers. This visa will allow digital nomads to live in Indonesia for extended periods, typically ranging from 6 months to 2 years, with the possibility of extension. . The Digital Nomad Visa will allow foreign workers to legally work remotely for foreign companies without the restrictions placed on the B211A or Tourist Visas. It is a welcomed move to provide more clarity and support for the growing number of digital nomads in the country. The Digital Nomad Visa will likely include benefits such as access to co-working spaces, affordable living, and the ability to work remotely without the complexities of other visa categories. . 2.4.KITAS (Temporary Stay Permit) For digital nomads who plan to stay in Indonesia for a more extended period, the KITAS (Kartu Izin Tinggal Terbatas) might be an option. This visa typically applies to foreigners working with Indonesian companies, but it is also possible for digital nomads working for foreign companies to obtain a KITAS with a sponsor. A sponsor is typically required, and it can be either an Indonesian citizen or a local company. The KITAS allows for stays of up to 2 years and can be extended. . For digital nomads looking to stay in the country long-term, KITAS might be the most viable option. However, it comes with more stringent requirements compared to the B211A visa. 3.How to Apply for a Digital Nomad Visa in Indonesia While the Digital Nomad Visa is still being finalized, here are the steps that digital nomads can follow to apply for other types of visas, such as the B211A or KITAS: 1.Prepare the Required Documents: ◦ A valid passport with at least 6 months of validity. ◦ Proof of financial stability (bank statements, income sources). ◦ Health insurance covering the duration of your stay. ◦ Return flight ticket or proof of onward travel. ◦ Additional documents depending on the visa type (e.g., business registration for the B211A visa). 2.Submit the Application: ◦ You can apply for a visa through the Indonesian consulate or embassy in your home country or online through Indonesia’s immigration portal. ◦ For the B211A visa, you will need to submit a completed application form, documents supporting your business or social activities, and the visa fee. 3.Wait for Approval: ◦ Visa processing time varies, but typically it takes around 7-14 business days for approval. It’s important to check the status and ensure your documents are in order. 4.Visa Extension: ◦ Depending on the visa type, you can extend your visa within Indonesia. For the B211A, extensions are available for up to 6 months. For KITAS, extensions can be processed up to a maximum of 2 years. . 4.Living and Working in Indonesia as a Digital Nomad Indonesia is an ideal destination for digital nomads due to its low cost of living, excellent internet infrastructure, and vibrant expat community. Popular locations like Bali, Jakarta, and Yogyakarta are home to numerous co-working spaces, cafes, and networking events that allow digital nomads to collaborate, share ideas, and maintain a high level of productivity. Additionally, Indonesia offers an unmatched lifestyle with its tropical climate, rich culture, and breathtaking landscapes, allowing digital nomads to balance work and leisure effectively. Conclusion Indonesia’s Digital Nomad Visa, alongside the existing visa options, provides a fantastic opportunity

Indonesia has become a popular destination for digital nomads, offering a perfect blend of natural beauty, affordable living costs, and vibrant workspaces. With its stunning beaches, tropical climate, and rich culture, the country provides an attractive environment for remote workers from around the world. However, as a foreigner planning to live and work remotely in Indonesia, it’s crucial to understand the local immigration regulations, especially as the legal framework evolves. This guide aims to provide digital nomads with an in-depth understanding of immigration rules and visa options in Indonesia for 2025. 1.Visa Options for Digital Nomads in Indonesia In 2025, Indonesia offers several visa options for digital nomads looking to stay in the country for extended periods. Depending on the type of work you do and the duration of your stay, these are the most relevant visas for digital nomads: 1.1.Tourist Visa (Visa on Arrival – VOA) For short stays of up to 30 days, digital nomads can enter Indonesia on a Tourist Visa. This visa is ideal for individuals who are just visiting or testing out the lifestyle in Indonesia. It is possible to extend this visa for an additional 30 days. However, this visa does not allow you to engage in any income-generating activities within Indonesia. . 1.2.B211A Social, Cultural, or Business Visa The B211A Visa is suitable for digital nomads looking to stay in Indonesia for more than 30 days but less than six months. It is primarily intended for social, cultural, or business purposes, including tourism and temporary work. This visa is popular among remote workers because it allows them to stay in the country for extended periods and can be renewed every 60 days for up to six months. However, this visa does not allow you to work for a local company or receive a salary in Indonesia. . 1.3.Digital Nomad Visa In 2025, Indonesia introduce a Digital Nomad Visa, allowing remote workers to stay for a more extended period. This visa will enable digital nomads to legally work for foreign companies while living in Indonesia, providing a more structured option for those planning to spend several months or even years in the country. The visa will also address some of the restrictions associated with tourist and business visas, creating a smoother legal framework for foreign remote workers. . 1.4.KITAS (Temporary Stay Permit) For those intending to stay in Indonesia for a longer period, the KITAS (Kartu Izin Tinggal Terbatas) is an option. This visa typically applies to foreigners working with a local employer or those with a family connection in Indonesia. Digital nomads wishing to engage in freelance work or receive payments from foreign sources can apply for this visa with the help of a sponsor, usually an Indonesian citizen or a company in the country. . 2.Work Permits for Digital Nomads As a digital nomad, you are not employed by an Indonesian company. Therefore, you need to be mindful of the restrictions on earning income while in the country. Some visa options, such as the B211A or KITAS, allow you to work remotely for foreign companies or conduct business activities from within Indonesia. However, if you plan to engage in local business activities or employment with an Indonesian company, you will need to secure a work permit. The most common work permit options for digital nomads are: • Work Permit (IMTA): For those employed by Indonesian companies. • Temporary Work Permit: For specific projects or short-term employment. . 2.1.Remote Work and Taxation As a digital nomad in Indonesia, it’s essential to understand the implications of taxation. Digital nomads working remotely for foreign companies are typically not subject to Indonesian income tax unless they are living in the country for more than 183 days in a year. If you stay longer, you may be considered a tax resident and subject to local taxes on your worldwide income. . 3.Staying in Compliance with Indonesian Immigration Laws Indonesia has a clear legal framework for immigration, and complying with these regulations is essential for a smooth stay. Violating visa conditions or overstaying a visa can result in hefty fines or deportation. To avoid issues: 1.Renew Your Visa on Time: Keep track of the expiration date of your visa and apply for extensions in advance, if applicable. 2.Obtain Proper Documentation: Ensure you have all the necessary documents, such as proof of health insurance, a return ticket, and financial support. 3.Avoid Working Illegally: If you plan to generate income within Indonesia, ensure your visa allows you to do so legally. It is illegal to work for an Indonesian company or accept payments from Indonesian entities while on a tourist visa. . 4.Benefits of Living and Working in Indonesia as a Digital Nomad Indonesia offers several advantages for digital nomads, such as: • Affordable Living: The cost of living in Indonesia, particularly in Bali and Yogyakarta, is relatively low compared to Western countries, making it an attractive destination for digital nomads. • Great Climate: Indonesia has a tropical climate, with warm weather year-round, perfect for those seeking a comfortable, sunny environment. • Networking and Community: Bali, in particular, has become a hotspot for digital nomads, with numerous co-working spaces, meetups, and networking events that allow remote workers to connect, share ideas, and collaborate on projects. • Cultural Experience: Indonesia offers a rich cultural experience, including traditional arts, cuisine, and historical landmarks, which enhances your stay while you work remotely. . 5.Future of Digital Nomad Visas in Indonesia As the demand for remote work continues to grow, Indonesia is likely to implement more flexible policies to attract foreign talent. The Digital Nomad Visa that is currently in the works will likely become a game-changer for remote workers worldwide, allowing them to legally work in the country while enjoying the benefits of living in one of Southeast Asia’s most dynamic and diverse nations. Conclusion Indonesia continues to be a top destination for digital nomads in 2025, thanks to its vibrant lifestyle, affordable cost of living, and increasing support for remote workers. By understanding the various visa options

Land titles Indonesia’s growing investment and commercial activity has led to a need for buildings and land. As a result, investors should familiarize themselves with the many sorts of land rights that are recognized and achievable in Indonesia. Freehold The freehold title grants you the right to use the land for any purpose for an endless period of time. Only Indonesian persons and certain Indonesian legal entities meet the standards set by the Indonesian government to be given a freehold title.  ​The freehold title can be transferred to another party. It is the most extensive sort of land rights in Indonesia that may be acquired. As a result, freehold title is the most valuable type of land rights available in Indonesia. Right to Cultivate Hak Guna Usaha (HGU) is the right to cultivate territories directly held by the state, such as farming, fishing, and cattle. The HGU duration is 25 years for people and 35 years for legal companies. However, HGU can be extended for an additional 25 (twenty-five) years and renewed for a maximum of 35 (thirty-five) years. HGU can be obtained by Indonesian nationals and legal entities incorporated under Indonesian law and based in Indonesia, such as PT PMA. Right to Build Right to Use Hak Pakai (HP) refers to the right to use and/or collect products from land directly controlled by the state or land owned by others who have granted the rights and obligations stipulated in the decision upon granting the right by the authorized official or through an agreement with the landowner. HP is classified as: Foreigners who are entitled to live or occupy a home must have immigration documents that comply with the provisions of the laws and regulations. If a foreigner dies, their heirs can inherit the house or residence. If the heir is a foreigner, they must get immigration paperwork in accordance with applicable rules and regulations.  Foreigners can own the following residential houses and the rights that come with them:House treads on land: Foreign ownership of residential properties is subject to the following restrictions: minimum price requirements, area constraints, a cap on the number of land parcels or apartment units, and allotment for residency or occupancy. PT PMA, a property developer, is licensed to purchase land in Indonesia for future development. In addition to the amenities, the government shall make it easier for investment businesses to acquire: Investors may request that the ease of servicing and/or licensing of land titles letter a be granted, extended, or renewed. Land titles can be granted and extended for investment purposes under the following conditions: A land title is renewable if the land is used and cultivated in line with the condition, nature, and purpose of the title granted. The granting and extension of land titles that are given all at once in advance and usable may be terminated or canceled by the government if the investment company abandons the land, harms the public interest, uses or exploits the land in ways that are inconsistent with the objectives and purposes of granting the land title, and violates the provisions of land-related laws and regulations. Foreigners can also purchase property in Indonesia, depending on the type of property:

An Indonesian Exit Permit Only (EPO) is a type of visa permit issued by the Indonesian immigration authorities to foreigners who intend to leave Indonesia and do not plan to return using their current visa. It effectively cancels the validity of the existing visa, allowing the foreigner to exit the country without re-entry privileges under that specific visa. Key Features of the Exit Permit Only (EPO): Steps to Obtain an EPO: Got questions? Digital Nomad Indonesia can seamlessly process your Indonesian Exit Permit Only (EPO), eliminating the hassle of dealing with immigration. Please do not hesitate to reach out to us for more details and information.

Indonesian Transitional Residence Permit (Bridging Visa) Are you a foreigner who had to leave Indonesia and then return because it is required to be able to extend your almost expired residence (stay) visa in Indonesia? Surely, it is expensive and draining. Now, though, you should be less concerned as the Ministry of Law and Human Rights’ Directorate-General of Immigration has instituted a Transitional Residence Permit sometimes referred to as the Bridging Visa. During the period needed to get a new residence permit, this transitional permit serves as a “bridge”. Transitional Residence Permit is given to foreigners as a limited stay permit without having to leave the territory of Indonesia according to Minister of Law and Human Rights Regulation No. 11 of 2024 on the Amendment to the Minister of Law and Human Rights Regulation No. 22 of 2023 (“Regulation”) The Transitional Residence Permit’s validity duration, according to Article 86A of the Regulation, is sixty days (cannot be extended) and is only granted should: The application is submitted by a Foreigner, Guarantor, or Person in Charge from within the territory of Indonesia to the Director-General of Immigration; the previous residence permit is still valid and the application is submitted at least three days before it expires (Article 94A (4);). Foreigners wanting to use a Transitional Residence Permit must fulfill specific guidelines under this Regulation: The Transitional Residence Permit is an attempt by the Directorate-General of Immigration to give legal certainty for foreigners living in Indonesia while they are seeking a new residence permit.

As the largest economy in Southeast Asia, Indonesia offers promising opportunities for foreign investors to own and operate businesses from one sector to another. However, navigating the legal and regulatory requirements in the country can seem daunting. Establishing a PT PMA could be the ideal pathway for a business to engage in various activities in Indonesia, subject to regulations and licenses, and actively contribute to the country’s economic growth while maintaining the foreign ownership status. In this article, we will guide you through the essential comprehension and provide valuable insights on how to establish a PT PMA in Indonesia. From understanding the legal framework to obtaining necessary permits, this guide will equip you with the knowledge and confidence to embark on your entrepreneurial journey and explore business opportunities in Indonesia. What is a PMA? PMA or Penanaman Modal Asing, refers to a foreign-owned company in Indonesia. PMA addresses the PT (Perseroan Terbatas or Limited Liability Company in Indonesia) owned by a foreigner or incorporated upon Foreign Investment. This form of legal entity allows foreign investors to establish and conduct business in Indonesia after completing a set of Company Registration processes according to Indonesian Law. As a foreign investor, you become a shareholder in the PT PMA that could contribute capital, generate revenue and oversee company operations. What is considered a Foreign Company? A business entity in Indonesia can take the form of a local or foreign limited liability company, which is specifically denoted by a direct investment company. A foreign company refers to any private company where the majority of ownership or control is held by foreign investors or shareholders. It is established by foreign individuals or organizations seeking to conduct business activities in Indonesia. The shareholders should provide the paid-up capital requirement and other resources necessary for the establishment and operation of the company. These people typically have a stake in the company’s shares and are actively involved in its decision-making processes. What benefits of a PMA (Foreign-Owned) Company? This type of company offers several benefits for foreign investors: How do I register a Foreign Company In Indonesia? Registering this type of company involves a series of steps and requirements. As a foreign investor, it is important to navigate theregistration process while adhering to Indonesian regulations. Steps for the Establishment of PT PMA To set up a foreign company in Indonesia, determine the desired business activities and secure a local company name that complies with Indonesian naming conventions. The business field you would like to acquire should match the recent Indonesian Investment List. Next, prepare the necessary documents, such as the company’s Articles of Association (Anggaran Dasar) and the Investment Plan (Rencana Investasi). These documents outline the company’s structure, purpose, and investment details.Once the documents are prepared, apply to the Indonesian Investment Coordinating Board (BKPM) online or through its regional office. This application should include relevant information about the shareholders, including their identities and investment shares. There should be at least two shareholders, as Indonesian shareholders are required to hold at least 5% of the company’s shares, while foreign shareholders can hold the remaining shares. Upon receiving approval from the BKPM, obtain a Deed of Establishment (Akta Pendirian) from a notary. This legalizes the establishment of the PT PMA. Following this, apply for a Taxpayer Identification Number (Nomor Pokok Wajib Pajak, NPWP) and register for social security programs. Additionally, secure any necessary business licenses and permits specific to the company’s industry and activities. These may include operational licenses, environmental permits, and other sector-specific requirements. Finally, register the PT PMA with the Ministry of Law and Human Rights, which grants the official legal status of the company.

Top layer: An essential component of the Indonesian tax system is the NPWP Indonesia. It’s crucial to comprehend this 15-digit NPWP number whether you’re looking for work, intending to start a PT PMA, or are just inquiring about buying real estate in well-known locations like Bali. In only a few easy steps, one can apply for an Indonesian NPWP number.. What is NPWP Indonesia? NPWP (Nomor Pendaftaran Wajib Pajak) is the Tax Identification Number in Indonesia used by companies and individuals who are tax residents of Indonesia. NPWP Indonesia, which consists of 15 digits, ensures that everyone, including foreigners living in Indonesia, pays their tax dues according to the country’s taxation regulations. Expats, in particular, are required to have their Indonesian NPWP number and are obliged to pay monthly income taxes, file annual taxes, and pay taxes on income earned outside Indonesia. Foreigners who establish a PT PMA also receive an NPWP number in Indonesia to pay their corporate taxes, even if they’re not tax residents in Indonesia.. Do I need an NPWP number? An NPWP tax number is required for everybody living in Indonesia, including foreign nationals. The following people must apply for an NPWP tax number and submit income tax returns:. Requirements to apply for NPWP Indonesia: To register for an NPWP Indonesia, you’ll need to provide several documents. These are the required documents to start the NPWP application: The Indonesian tax office might request additional documents listed above.

Whether you are presently operating a start-up, a small company with a few people, or a large company in Indonesia, you must already be aware of the need to maintain minimal overhead and expenses.. Most entrepreneurs would concur that, particularly in a major city like Jakarta, leasing costs are among their biggest expenses. For this reason, entrepreneurs are provided with alternatives to avoid paying rent while yet enjoying all the advantages of a real office space. Virtual office is one of the greatest solutions. Since virtual offices have been growing for a while, you might have previously heard of them. Along with enabling you to continue doing business as usual, a virtual office offers the highest degree of flexibility in lowering needless overhead. WHAT IS A VIRTUAL OFFICE? A virtual office offers companies all-inclusive services. Without the actual space needed by a conventional office, it gives you an office address. A top-notch, conveniently located virtual office should provide you with a distinguished office address. Furthermore, a top virtual office provider ought to offer workspace, meeting space if needed, communication services including a dedicated business phone, fax, and email, and a range of administrative services including call and mail handling and reception. WHAT A VIRTUAL OFFICE DOES FOR A BUSINESS? A virtual office is not only a favored workspace solution among digital nomads, freelancers, and entrepreneurs who operate from home or any location worldwide, but it is also a creative approach that companies employ to ensure that their employees remain engaged without the constraints of a traditional 9-to-5 job model. The objective of companies is to reduce the turnover rate by reducing superfluous expenses and providing employees with the maximum flexibility to perform their duties in a more creative manner. In order to remain competitive in the contemporary business environment, an increasing number of organizations have capitalized on the advantages of a virtual office. Additionally, they desire their employees to be aware that they have the autonomy to manage their own time. They are permitted to work at any time and from any location, and they may even combine work and travel. That being said, it provides remote employees with a greater sense of self-discipline, motivation, and responsibility. Additionally, the concept offers organizations access to a broader range of talents from around the globe. It is entirely reasonable that certain conventional organizations continue to harbor concerns regarding the potential loss of connection with their clients and employees as a result of adopting remote work concepts and utilizing a virtual office. This is not necessarily the case, as employers can still ensure that clients feel cared for and that employees are engaged and keep pace with duties using the advanced technology and communications available. BENEFITS OF A VIRTUAL OFFICE: Virtual offices are a popular choice among entrepreneurs and business owners due to the ability to manage their workloads and reduce expenses from the convenience of their homes. The primary advantages of employing a virtual office that you should evaluate for your organization are summarized below:

Limited Liability Company (“LLC”) establishment procedure in Indonesia consists of various factors ranging from a certain amount of capital to numerous documents that must be owned. The task of an LLC establishment can prove to be difficult. In this article, we’ll discuss the topic of LLC’s capital structure that will entail details regarding the new LLC regulations and many more. What’s the Law On LLC’s Capital Structure? Taking the latest regulation as reference, Omnibus Law, Article 109 (3) states that a Company is required to have authorized capital, the amount of this capital is determined based on the decision of the company founder and accordingly, at least 25% of the authorized capital must be fully issued and paid-up. This regulation amend some parts of its preceding law, namely Law Number 40 of 2007 on Limited Liability Companies (“Law 40/2007”). What’s the difference Between ‘Issued Capital’ and ‘Paid Up Capital’? ‘Paid Up Capital’ means any amount (even if the capital concerned hasn’t been paid in full) of money that has already been paid by investors in exchange for shares of stock, when the amount of issued share capital has already been fully paid, the ‘Paid Up Capital’ has become ‘Paid Up Share Capital’. Meanwhile, ‘Issued Capital’ means the value of shares the company can actually issue to potential investors, the total amount of shares that have been given to shareholders will then be called ‘Issued Share Capital’. Note: The fully issued and paid-up capital is proven by a valid deposit receipt and any subsequent issue of shares that are performed each time (to increase issued capital) that must be fully paid-up. Prohibitions Concerning Ownership of Company’s Shares Article 36 (1) of Law 40/2007 states, “A Company is prohibited from issuing shares to be owned by itself or to be owned by another company whose shares are directly or indirectly owned by the Company.” This excludes, however, in situations where ownership of shares are acquired from transfer due to law, grant, or bequest. On acquiring shares through mentioned means, the shares concerned must be transferred to another party (not prohibited from owning shares in the Company) within a period of 1 year after the date of acquisition. Stay up to date for more of this insights via our company website: DIGITAL NOMAD INDONESIA DIGITAL NOMAD INDONESIA

Starting on February 14, 2024, foreign tourists will have to pay a tax of Rp 150,000 ($10) when they visit Bali. The Minister of Tourism and Creative Economy, Sandiaga Uno, has made it clear that this tax is meant to protect Bali’s culture and natural treasures. “The Provincial Government imposes levies on foreign tourists every time they enter Bali directly from abroad or indirectly through other regions in Indonesia.” – Article 5 (1) of Bali Government Regulation Number 6 of 2023 on Charges For Foreign Tourists For Protection of Bali’s Culture and Natural Environment A regional rule (Perda) that went into effect in November 2023 states that all foreign tourists who come to Bali must make a one-time payment of Rp 150,000.00 ($10) as a requirement for their full stay in Bali. The payment will be processed electronically by Bank Rakyat Indonesia (BRI) through the Love Bali website (https://lovebali.baliprov.go.id/home) and does not enact cash payment method. On the contrary, they can choose from a number of payment options, such as a virtual account, a bank transfer, or QRIS which they can conduct before their arrival in Bali. After successful transfer, the “Love Bali System” will send a digital proof of payment. People who can’t use the Love Bali System can pay at BRI counters in airports or ports with debit or credit cards or electronic data capture (EDC), in this case, tourists will get a printout as proof of payment. It is necessary for foreign tourists to keep their proof of payment as it will be scanned at the arrival gates during the verification process. The goal of the tax is not only contribute to maintain information services about culture tourism in Bali, but also the result of such tax would be utilized for the improvement of public infrastructure and transport. “The levy regulations aim to establish cleanliness, order, comfort, and safety for tourists,” Sandiaga Uno said in a recent statement. Along with helping to protect Bali’s rich culture, the new tourist tax is meant to improve the general experience for visitors by making infrastructure better and payment processes easier

Alright, where do I start? First thing first, as a foreigner, you are not given a lot of options. Nonetheless, varying business endeavours and opportunities still remain! In this article, we’ll talk about what are the requirements you need to make investments and give you insight on the business fields available for you to undertake. What do I need to know? According to existing laws regarding Investment Activities in Indonesia, a Business Licence is needed to provide legality for Business Actors to start and operate their businesses and/or activities in Indonesia. Individuals, Business Entities, Representative Offices, and Foreign Business Entities. These Business Actors are determined as Business Actors that have the right to procure a business license in Indonesia. Establishing Business Entity (PT PMA) In order to establish a Business Entity in Indonesia, a foreigner may do so by establishing a PT PMA (Limited Liability Company of Foreign Investment). This is because PT PMA is the form of investing activity that is specified only for foreign investors to do business within the territory of Indonesia which can be done by either fully using foreign capital or in the form of joint venture with domestic investors. Read more about PT PMA here. Note: Business Entities consist of entities that are either an incorporated or unincorporated entities that are established within Indonesia that carries out businesses and/or activities in certain sectors. In Indonesia, PT PMA is classified into the a ‘Large-Scale Business’ category, which means it must comply with a minimum investment value of more than Rp 10.000.000.000,- (10 Billion Rupiahs) or per 5 digit of KBLI Business Sector per project location (excluding land and buildings). Such provision can be exempted if stipulated otherwise by the laws and regulations. However, some cases for the total investment values of certain business sectors are regulated differently, these are: 1.Large-scale trading business activities: Total Investment value must be more than Rp 10.000.000.000,- or as much as per the initial 4 (four) digits of KBLI excluding land and buildings; 2.Food and beverage service business activities: Total Investment value must be more than Rp 10.000.000.000,- or as much as per 2 initial digits of KBLI per one point location excluding land and buildings; 3.Construction service business activities: Total Investment value must be more than Rp 10.000.000.000,- or as much as per 4 initial digits of KBLI excluding land and buildings in one activity; 4.Industrial business activities that produce a type of product with a different 5-digit of KBLI in 1 production line: Total Investment value must be more than Rp 10.000.000.000,- excluding land and buildings; and 5.Property construction and exploitation business activities: a.In the form of property which take form of a complete building or an integrated housing complex, total Investment value must be more than Rp 10.000.000.000,-including land and buildings; and/or b.In the form of a property unit not in 1 building as a whole or 1 integrated housing complex, Total Investment value must be more than Rp 10.000.000.000,- excluding land and buildings. What are the Businesses can I do? In general, all businesses that are commercial in nature is available for investors to invest in. This is referenced as business fields that consist of: a.Priority Business Fields; b.Business Fields allocated to or requiring partnerships with Cooperatives and UMKM; c.Business Fields with certain requirements; and d.Business fields that are not included in letter a, letter b, and letter c (this means this type of business field may be entered by all investors. Further information regarding the descriptions of these specific business fields can be read here. In return, there are Business Sectors that are declared to be closed, which include: a.Cultivation and industry of category I narcotics; b.All forms of gambling and/or casino activities; c.Capture of fish species listed under Appendix I of Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES); d.Utilization or taking of corals (koral) and utilization or taking of reefs (karang) from nature which are used for building materials/lime/calcium, aquarium, and souvenirs/accessories, as well as live coral or recent death coral from nature; e.Chemical weapon manufacturing industry; and f.Chemical industry and ozone-depleting substance industry. As well as, Alcoholic Beverages Industry (KBLI 11010), Alcoholic Beverages Industry: Wine (KBLI 11020), and Malt Beverages Industry (KBLI 1103). A further descriptions on these Business Fields for investing opportunities can be read in our previous article here. Establishing Foreign Business Entity (Representative Office) According to the law, Foreign Business Entities (opening up representative offices) are allowed to receive Business Licensing as a way to conduct business activities in Indonesia. The Representative Office in itself can be established depending upon the line of business and the necessary licenses issued by the related government department. These Foreign Business Entities must be in the forms of either: franchisors from abroad, foreign futures traders, foreign private electronic system organizers, and/or permanent establishment (must include a representative office established to conduct business activities in the oil and gas sector). However, Representative Offices have a limitation in which they are not allowed to conduct direct sales and cannot issue Bills of Lading. Furthermore, in accordance with the BKPM Regulation 4/2021, Article 13, these Foreign Business Entities are exempted from the provision regarding he investment value and capital as referred previously towards PT PMA’s Total Investment requirements. Further informations regardin the establishment of these Foreign Business Entities (Representative Office) will be discussed in upcoming articles. Conclusion Investment opportunities for foreigners in Indonesia is limited to the establishment of PT PMA and Foreign Business Entities (Representative Offices). This means that the capacity of Foreign nationals to conduct business should be done in those methods. The requirements for establishing such entities also vary and may change depending on the ever-changing provisions of Indonesia’s regulation system. Therefore, absolut certainty for understanding the laws and requirements of foreign investment in Indonesia may prove to be difficult. Contact us at DIgital Nomads Indonesia and Selaras Law Firm to book your free consultation! DIGITAL NOMADS INDONESIA Digital Nomads Indonesia is your our one-stop shop in

First thing first,  Many foreigners working in Indonesia share the same concerns when it comes to their safety and security of working legitimately in Indonesia. Varying between concerns of their ability to get paid or being able to be visibly online for their work. These concerns of course don’t appear without reason, numerous occasions have arisen where foreigners experience difficulties and persecutions for sharing and in some cases, for promoting their works. Let’s break this down even further. Why do foreigners experience these? According to Indonesia’s immigration law, only foreigners that hold certain visas and permit can work in Indonesia. To begin with, a working visa is categorized within the C31- Limited Stay Visa, which falls under the ‘Multiple Entry’ category. Although a B211A visa (‘Single Entry Visa’) may also enable foreigners to work, the scope of its capacity to provide foreigners to work (the other needed rights to work properly) are not determined under this particular visa. Therefore, we suggest applying for C31- type of visas that may provide foreigners with a sound, comfortable, and full proof package of not having to deal with the bureaucracy as often. Additionally, one criteria that might also fall under the Working Visa category is for those who identify as persons that stay in Indonesia for the ‘ease of doing work while on vacation’. This provision falls under its own category and further provisions specifically regulating this is still unclear. However, basing from the visa types and regulations that have existed thus far, it can be concluded that this particular provision also encompasses as a bridge for foreigners who identify as digital nomads in Indonesia. About C31- Limited Stay Visa What does holding a C31- Visa entail? In short, by holding this visa, foreigners are able to choose for a longer period of time that ranges from 6 months, 1 year, and 2 years. Additionally, this visa can be used for ‘Re-entry’ purposes and be extended. Which means, the Limited Stay Visa also provides the ability to gain a Limited Stay Permit. Within the C31- Visa, there are several sub-criterias of visa each with its own purpose, these are: Working Visa (C312 Visa), Foreign Direct Investment (“PT PMA”) Visa (C313 & C314 Visas), Training & Research Visa (C315 Visa), Education (C316 Visa), Family Unification Visa (C317 Visa), and Repatriation Visa (C318 Visa). The visas mentioned above include all the available visas falling under the C31- category. In this article, we’ll talk in further details of the visas you’d need to work properly in Indonesia. 1. Working Visa (C312) This visa is aimed for foreigners who identify as experts and/or workers. The application of such visas can be done through submission for applications by the Foreigner themselves or their Sponsors. An ‘expert’ may also include prospective foreign workers who work as part of a skills trial. Meanwhile, the term ‘workers’ might be vague, thus to give a better understanding, below we mention several conditions that categorized such term: 2. Foreign Direct Investment (PT PMA) Visa [C313 & C314] The Foreign Direct Investment visas only apply towards foreign nationals who conduct foreign investment activities in Indonesia. Foreign investment activities are grouped into Three categories based on the maximum length of stay of two, five and ten years. Based on the maximum period of stay, the maximum period of 5 and 10 years of stay are further broken down into three sub-categories, these are whether the foreigners intend to establish a company in Indonesia; do not intend to establish a company in Indonesia; and if the foreigner will serve as members of the board of directors or members of the board of commissioners in a company to be established in Indonesia which is a branch or subsidiary of a company outside Indonesian Territory. When it comes to Foreign Direct Investment Visa, certain capital expenditures are needed to gain the Foreign Direct Investment Limited Stay Visa. Below are the requirements of each maximum period of stay: 1. 2 years maximum period of stay Applicant of 2-years maximum period of Direct Investment Visa must provide: 2. 5 years maximum period of stay Applicant of 5-years maximum period of Direct Investment Visa must provide: 3. 10 years maximum period of stay Applicant of 10-years maximum period of Direct Investment Visa must provide: Note: Further informations regarding ‘Visa’ can be read here and update for the ‘New Immigration Policy’ can be read here.  Bonus Round: Digital Nomad Visa We must all have heard by now about the appetizing and elusive proposition of the ‘Digital Nomad Visa’. In reality, we might want to hold down our horses as no progress have actually appeared since 2021 (when we first heard of the idea) relating to this actually coming true. In 2022, the Indonesia’s government had instead introduced the ‘Second Home’ Visa. In accordance with the definition provided by existing provision,  a ‘Second Home Limited Stay Visa’ encapsulates a not-in-the-framework of work Visa that’s given to foreigners and/or their family to stay in Indonesia for a period of either 5 years or 10 years, of course, after fulfilling certain requirements. The Second Home Limited Stay Visa, however is given to: people who are planning to do ‘Second Home’ purposes in Indonesia, a person that identifies as a special expertise, world leader; elderly persons aged 60 (sixty) years old or older; and remote worker who is bound by an employment relationship with a company outside Indonesian Territory. Conclusion Foreigners who are planning to work visibly in Indonesia require the fitting visa relevant to the work field. Holding the right visa and understanding the legal capacity it provides for the owners do make life more convenient in the long run for foreigners who just want to be able to work properly and conducively in Indonesia.  Have Further Questions? Contact us at Selaras Law Firm to get your free consultancy on all the legal matters you have.  @selaraslawfirm Selaras Law Firm +62 819 4412 6600 SELARAS COMPANY PROFILE Selaras is a Market Entry and Investment Consulting Firm.

What’s the ‘New Immigration Policy’? Introduced on November 1st 2023 in the Regulation of the Minister of Law and Human Rights No. 22 of 2023 on Visas and Stay Permits, new policy changes related to Shares within the framework of Foreign Direct Investment (FDI) regulations in Indonesia take into effect. This means that PT PMA that apply for ITAS will need to pay attention to the number of shares owned by foreign nationals (WNA) in its company structure.  What does the ‘New Immigration Policy’ entail? For Limited Stay Permit (ITAS) As well as some additional requirements that is applicable to PMA who wish to apply for a new application or extension of ITAS since November 1st 2023: For Permanent Resident Permit (ITAP) Aside from policy changes relating to the minimum shares value of Directors/Commissioners and shareholders without position, following the “New Immigration Policy” PMA is required to make changes to the share value and capital value in the Company Deed before a Notary. How long is the ‘New Immigration Policy’ transition period? All applications and extensions of ITAS PMA will follow the new policy effective as of January 1st 2025. Meanwhile, new applications and extensions of PMA ITAS for companies with the number of shares that are below 10 billion is temporarily allowed until December 31st 2024 with a period of stay that will only be granted following the visa owned.

Indonesia’s Ministry of Immigration officially added Panama, Guatemala and Macau to the list of Countries and Special Administrative Regions subject to Indonesia Visa on Arrival (VOA). The new regulation was announced through Circular Letter Number IMI-0133.GR.OI.OI Year 2023. At the moment this article is published, there are 92 countries eligible to use Indonesia Visa on Arrival. Prior to the regulation coming into effect, the Indonesian immigration ministry had granted permission to use visas on arrival gradually for 89 other countries. The most recent are Kenya and Rwanda in February 2023, joining Kazakhstan which has pocketed the Indonesian VOA eligibility in January. See the picture below to understand the complete list of countries subject to Visa on Arrival: About Indonesia visa on Arrival From the first quarter of 2022, the VOA scheme has helped simplify many nationals’ access to travel to Indonesia. As an alternative to a tourist visa, Visa on Arrival allows foreigners to stay for 30 days and is often regarded as the simplest entrance permission to obtain instantly upon arrival. This visa provides foreign nationals with an initial 30-day visa to Indonesia. The visa is also extendable for 30 days, granting a maximum stay of 60 days within the country. Applying for VOA is also easy. Foreigners can ask the Immigration officer or straight look for the BRI counter (Official Bank of Indonesia) upon their arrival and make the payment for the visa application on the spot.Furthermore, applying for a Visa on Arrival can also be done using an Electronic Visa on Arrival (e-VoA) through molina.immigration.go.id before leaving for Indonesia. Both the eVoA and VOA applications would not require a guarantor with a flexible payment gateway, using cash, credit/debit card with a Visa, Mastercard or JCB logo.To apply for a Visa on Arrival on the spot, we recommend you prepare IDR 500,000 IDR or USD 35 in cash as the best option. Stay longer in Indonesia using visa on Arrival Extension Questions are spreading around wondering if we could stay longer in Indonesia with a Visa on Arrival. Is it really possible?Initially, Indonesia Immigration provides another 30 days you can get after extending your VOA. The fee charged for a foreigner toextend their Indonesia VOA is 500,000 IDR. With the price, applicants still have to visit the immigration office 3 times to performseveral technical procedures before finally getting their visa extended.

Overview of the visa application process in Indonesia The COVID-19 pandemic has brought about significant changes in various aspects of life, including travel and immigration procedures. Since 2021, Indonesian Immigration has issued several additional regulations regarding visas and residence permits for foreigners willing to enter the country. An online visa application scheme was released to accommodate the easy process of getting a visa to Indonesia. However, recent developments indicate that some services might undergo massive amendments. This article discusses the recent updates about upcoming visa regulations coming around the middle starter of 2023. Visa Online Onshore Disablement Visa Onshore is a way of applying for a visa that serves as a residence permit for foreigners already in Indonesian territory. Before the COVID-19 outbreak, the concept of visa online onshore application did not exist in Indonesia. These measures were to respond to the lockdown regulation, allowing individuals to apply for visas within Indonesia to repress international traffic in and out of the country. However, with the pandemic situation gradually improving and restrictions revoked, the immigration authorities have decided to deactivate the online process for the onshore visa application process. Immigration proposes to abolish the online onshore visa application policy that would require foreigners to continue the visa application process in their respective countries (offshore). Despite the changes in visa regulations, the option to change the status from B21 IA (visitor visa) to ITAS (Limited Stay Permit) will still be available. This process existed even before the pandemic and will continue to be a viable option for individuals who wish to extend their stay in Indonesia. Changes in Visa Health Requirements As we are slightly surpassing the pandemic situation, the need to provide additional documents such as vaccination certificates andhealth insurance is proposed to no longer be mandatory for visa applications. When will the regulations become effective? While the regulations have been proposed, it may take some time for the immigration authorities to update the other regulations accordingly. There may be a new circular issued by the immigration authorities in the near future. This circular could provide further guidance and updates on visa regulations, including any changes to the visa application process or requirements. Therefore, it is important to keep updated and stay on top of the Indonesian visa regulations. Check out our articles to understand the latest visa updates in Indonesia.