Foreigners Working In Bali: What Do I Need To Ensure To Work Legitimately In Indonesia?

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:

  1. Someone who does activities related to certain professions and receive payment;
  2. Conduct activities in purpose to create a movie that has commercial characteristic and have received permit from relevant authorities; 
  3. Installing and repairing machines;
  4. Someone that holds art performance, music, and/or sport events; and 
  5. Perform After-Sales Service.
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:

  1. Proof of Share Ownership with at least, the value of Rp 10,000,000,000.00 or equivalent to such as stated in the data of the ministry or agency in the capital investment sector; 
  2. Decree of the Minister on the approval of the establishment of an incorporated limited liability company; and 
  3. Company’s current account for the last 2 (two) months
2. 5 years maximum period of stay

Applicant of 5-years maximum period of Direct Investment Visa must provide:

  1. Proof of Immigration Guarantee for Foreign Nationals as individual investors intending to establish a company in Indonesia that is in the form of 
    – A statement of commitment that the Foreign Nationals will establish a company in Indonesia with issued capital (shares) or investment value of at least US$2,500,000 (must be fulfilled within a maximum period of 90 Days from the date the Limited Stay Permit is granted).
  2. Proof of Immigration Guarantee for Foreign Nationals as individual investors who do not intend to establish a company in Indonesia that include:
    • A statement of commitment to purchase Indonesian government bonds of at least US$350,000 
    • A statement of commitment to purchase shares of a publicly-listed company in Indonesia of at least US$350,000; or 
    • A statement of commitment to purchase mutual funds from a publicly-listed company in Indonesia of at least US$350,000 (must be fulfilled within a maximum period of 90 Days from the date the Limited Stay Permit is granted).
  3. Proof of Immigration Guarantee for Foreign Nationals who will serve as members of the board of directors or members of the board of commissioners of a company to be established in Indonesia which is a branch or subsidiary of a company outside Indonesian Territory that is in the form of: 
    • A statement of commitment from the company to establish a branch or subsidiary in Indonesia with an investment value of at least US$25,000,000 (must be fulfilled within a maximum period of 90 Days from the date the Limited Stay Permit is granted).
3. 10 years maximum period of stay

Applicant of 10-years maximum period of Direct Investment Visa must provide:

  1. Proof of Immigration Guarantee for Foreign Nationals as individual investors intending to establish a company in Indonesia that is in the form of:
    • A statement of commitment of the Foreign Nationals to establish a company in Indonesia with issued capital (shares) or investment value of at least US$5,000,000 (must be fulfilled within a maximum period of 90 Days from the date the Limited Stay Permit is granted).
  2. Proof of Immigration Guarantee for Foreign Nationals as individual investors who do not intend to establish a company in Indonesia that include:
    • A statement of commitment to purchase Indonesian government bonds of at least US$700,000; 
    • A statement of commitment to purchase shares of a publicly-listed company in Indonesia of at least US$700,000; a statement of commitment to purchase mutual funds from a publicly-listed company in Indonesia of at least US$700,000; or 
    • A statement of commitment to purchase multi-story housings or apartments with a minimum value of US$1,000,000 (must be fulfilled within a maximum period of 90 Days from the date the Limited Stay Permit is granted).
  3. Proof of Immigration Guarantee for Foreign Nationals who will serve as members of the board of directors or members of the board of commissioners of a company to be established in Indonesia which is a branch or subsidiary of a company outside Indonesian Territory that is in the form of:
    • A statement of commitment from the company to establish a branch or subsidiary in Indonesia in the form of issued capital (shares) or investment value of at least US$50,000,000 (must be fulfilled within a maximum period of 90 Days from the date the Limited Stay Permit is granted).

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. 

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Selaras is a Market Entry and Investment Consulting Firm. We provide strategic consulting for your investments and provide various services to companies, investors and individuals doing business in Indonesia. From remote hiring to setting up local operations, we can help.

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