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)
- Owning shares of at least IDR 10,000,000,000 for Directors/Commissioners.
- Having shares of at least Rp. 10,000,000,000,- for shareholders without positions.
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:
- Boarding Pass when entering Indonesia using Investor Visa;
- Company (PMA) Bank Statement for the last 3 (months) to show that the capital has indeed been deposited in the company’s account.
For Permanent Resident Permit (ITAP)
- Having minimum shares of Rp. 15,000,000,000,- for Director/Commissioner.
- Owning shares of at least Rp. 15,000,000,000,- for shareholders without positions.
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.