Indonesia KITAS Investment Visa: Residency Through Capital Investment

Overview

Indonesia is Southeast Asia's largest economy — a G20 member with over 270 million people, the world's largest archipelago, and one of the fastest-growing middle-income consumer markets. Bali, Jakarta, and the broader archipelago attract a globally diverse community of entrepreneurs, investors, and retirees who seek a long-term presence in the country.

For foreign nationals wishing to reside in Indonesia beyond short-stay and social visas, the primary legal pathway tied to investment activity is the Kartu Izin Tinggal Terbatas, or KITAS (Limited Stay Permit Card). The investor-category KITAS — sometimes referred to as the "investor KITAS" or "investment KITAS" — is obtained by foreign shareholders or directors of an Indonesian company (PT PMA) who meet minimum capitalisation requirements set by the Indonesian Investment Coordinating Board (BKPM, now integrated into the Ministry of Investment).

Indonesia also introduced the Second Home Visa in 2022, a separate product aimed at longer-term lifestyle migrants. The investor KITAS and the Second Home Visa are distinct instruments addressing different profiles; this guide focuses specifically on the investor KITAS pathway.

As of 2026, the investor KITAS remains the primary formal residency route for those building or acquiring a business in Indonesia. Rules, minimum investment thresholds, and permitted business activities can change; seek professional legal advice before committing capital.

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Investment Options

PT PMA Formation and Capital Injection

The standard investor KITAS requires the applicant to hold a qualifying stake in a PT PMA (Perseroan Terbatas Penanaman Modal Asing — a foreign-owned limited liability company). The key requirements as of 2026:

• PT PMA investment plan: A PT PMA is generally expected to have a total investment plan exceeding IDR 10 billion (approximately USD 600,000–650,000 at current exchange rates) per business activity code and location, excluding land and buildings.
• PT PMA paid-up capital: From 2 October 2025, BKPM Regulation No. 5 of 2025 reduced the minimum paid-up capital for most foreign-owned PT PMA companies to IDR 2.5 billion (approximately USD 150,000–160,000), down from the former IDR 10 billion. Some sectors carry different requirements.
• Investor KITAS shareholding: Critically, the investor KITAS itself is more demanding than the PT PMA paid-up capital minimum. Under current immigration rules, each individual investor applying for an investor KITAS must hold shares of at least IDR 10 billion (approximately USD 600,000–650,000) in the PT PMA. A smaller shareholding may support a director/work-permit KITAS but not a pure investor KITAS. These thresholds are subject to periodic revision; confirm current BKPM and immigration requirements with a licensed Indonesian legal adviser.
• Permitted sectors: Many sectors are open to 100% foreign ownership. A small "negative investment list" restricts or caps foreign ownership in specific industries (small-scale retail, certain agriculture, broadcasting, etc.). The list was significantly liberalised in 2021 under the Omnibus Law on Job Creation.
• Business activities: The KITAS is linked to the business activity code (KBLI) registered with the company. The investor must demonstrate genuine business activity — Indonesia does not support passive shell structures for residency purposes.

Alternative Pathways

Some investors use a lower minimum-capital structure in combination with a non-investor KITAS category (sponsored by the company) rather than a pure investor KITAS. However, this approach typically requires the applicant to be an employee-director rather than purely a passive investor.

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Key Benefits

Legal long-term residency. The investor KITAS grants permission to reside in Indonesia for one to two years at a time, renewable provided the PT PMA remains compliant and active.

Multiple-entry and exit. KITAS holders may travel freely in and out of Indonesia. An exit re-entry permit (formerly a separate step) is now generally issued together with the KITAS.

Path to permanent residency (KITAP). After holding a KITAS for five continuous years, applicants may apply for a Kartu Izin Tinggal Tetap (KITAP — Permanent Stay Permit), which is valid for five years and renewable indefinitely.

Work rights. Investor KITAS holders may work for their own PT PMA as directors. Working for other Indonesian entities requires a separate work permit (IMTA).

Family sponsorship. Dependants (spouse and minor children) can be sponsored under a dependent KITAS linked to the primary investor KITAS.

Business establishment. PT PMA ownership confers rights to employ local and foreign staff, enter commercial contracts, issue invoices, and operate a formal Indonesian business — necessary for any substantive commercial operation.

Property access. KITAS and KITAP holders may enter into "right to use" (Hak Pakai) property agreements for residential property, providing more secure tenure than simple lease arrangements available to tourist-visa holders.

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Eligibility Requirements

• Hold a valid passport with sufficient remaining validity.
• Establish or acquire a PT PMA meeting minimum capitalisation requirements.
• Hold a qualifying equity stake (typically a minimum percentage, often 25% or more, but this can vary).
• Demonstrate genuine investment intent — supporting documentation includes company deed, NIB (business registration number), tax registration, and bank evidence of capital injection.
• Pass Indonesian immigration background checks.
• Provide valid health insurance or evidence of ability to fund healthcare.
• No disqualifying criminal history.

There is no minimum age requirement. Investors are not required to live in Indonesia for any minimum period per year to maintain the KITAS, though tax residency rules may apply if extended stays exceed 183 days in a tax year.

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Application Process

Step 1 — Company establishment. Instruct an Indonesian corporate law firm to form a PT PMA (or acquire an existing clean PT PMA). This involves: obtaining a Deed of Establishment from a Notary, registering with BKPM (via the OSS — Online Single Submission — system), obtaining a Nomor Induk Berusaha (NIB — Business Identification Number), and registering with the Tax Office (NPWP).

Timeline: four to eight weeks for a standard new establishment.

Step 2 — Capital injection. Transfer qualifying investment capital into the PT PMA's Indonesian corporate bank account and obtain bank confirmation letter. Retain all international transfer documentation.

Step 3 — KITAS application. The PT PMA (as sponsor) submits the investor KITAS application to the Directorate General of Immigration through the online immigration portal (evisa.imigrasi.go.id) or via an immigration consultant. Supporting documents include: PT PMA legal documents, NIB, NPWP, capital injection evidence, applicant's passport, and photographs.

Step 4 — Approval and issuance. On approval, the applicant attends an Indonesian immigration office or Indonesian Embassy/Consulate to submit biometrics and collect the KITAS card.

Step 5 — IMTA (if required). If the investor will draw a salary as a director, a separate IMTA (Izin Mempekerjakan Tenaga Asing — Expatriate Employment Permit) may be required, along with payment of the expatriate worker levy.

Typical total timeline: Three to six months from initial company formation to KITAS issuance.

Important: Indonesia's immigration regulations are frequently updated. Working through a licensed immigration consultant or law firm with current BKPM and immigration authority relationships is strongly advised.

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Tax Implications

Residency-based taxation. Indonesia taxes on a residency basis. A foreign national present in Indonesia for more than 183 days in a 12-month period is deemed a tax resident and is subject to Indonesian income tax on worldwide income.

KITAS holders who spend fewer than 183 days per year in Indonesia are non-residents for Indonesian tax purposes and are taxed only on Indonesia-sourced income (such as dividends from the PT PMA, Indonesian rental income, and Indonesian employment income).

Corporate tax. The PT PMA is subject to Indonesian corporate income tax at 22% on net profits (as of 2026). Small companies meeting certain criteria may qualify for a reduced rate of 11%. Transfer pricing rules apply to transactions with related parties.

Dividend withholding. Dividends paid by a PT PMA to a foreign individual shareholder are subject to 20% withholding tax, reducible under an applicable Double Taxation Agreement (Indonesia has DTAs with approximately 70 countries).

Value Added Tax. Most goods and services supplied by the PT PMA are subject to VAT at 11% (standard rate as of 2026, increased from 10% in 2022).

Exit tax and capital gains. Capital gains on the sale of shares in an Indonesian company by a non-resident may be subject to Indonesian withholding tax. The applicable rate depends on DTA provisions. Investors should model exit scenarios carefully.

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Practical Considerations

Corporate governance. A PT PMA requires a minimum of two shareholders and two commissioners. Local nominee structures are sometimes used but carry legal and commercial risks; independent professional advice on governance structure is essential.

Banking. Opening a PT PMA corporate bank account requires physical presence in Indonesia and comprehensive KYC documentation. The process can take four to eight weeks. Major Indonesian banks (BCA, Mandiri, BNI, BRI) and international banks (HSBC, Standard Chartered, Citibank branches) accept PT PMA accounts.

Language. Indonesian law requires company documents, contracts, and correspondence with government authorities to be in Bahasa Indonesia. Legal translation is an additional cost.

Compliance burden. A PT PMA is subject to annual reporting obligations with BKPM (activity report), the Tax Office (annual corporate and VAT returns), the Ministry of Law and Human Rights (annual GMS report), and social security agencies (BPJS). Non-compliance can jeopardise KITAS renewal.

Bali-specific restrictions. Certain business activities in Bali — particularly tourism-related services — have specific zoning, environmental, and local government licensing requirements beyond the national PT PMA framework.

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How Global Investments Can Help

Global Investments has supported clients in structuring Indonesian business and residency arrangements as part of broader Asia-Pacific wealth and mobility planning. Our Indonesia advisory services include:

• Investment structuring — determining the optimal PT PMA capitalisation, ownership structure, and business activity code for your investment goals and residency objectives.
• Legal partner coordination — working with our vetted network of Indonesian corporate and immigration lawyers in Jakarta and Bali.
• Capital flow planning — advising on the most efficient route for capital injection in light of international wire transfer documentation requirements and Bank Indonesia reporting.
• Tax residency analysis — modelling day-count positions and advising on DTA applicability to minimise double taxation.
• Ongoing compliance support — annual reporting coordination for PT PMA entities.
• Multi-jurisdiction integration — incorporating Indonesian residency into a broader multi-country mobility and tax strategy.

Indonesia's regulatory environment is dynamic. Requirements and thresholds change, and personal circumstances vary significantly. Please seek independent professional legal and tax advice before committing to any Indonesian investment or residency structure. Contact our team to begin a tailored assessment.