Working KITAS vs. Investor KITAS: What’s the difference?
As Bali's premier visa and business consulting agency, clients often reach out to us looking for ways to stay longer-term in Bali. Many of them have questions about Working and Investor KITAS and wonder if they would be able to fulfill the eligibility requirements. If you have been trying to understand which visa would suit you, let us help you make an informed decision and clear up any confusion you may have about the differences between these two popular visa options.
What is a KITAS?
KITAS stands for Kartu Izin Tinggal Terbatas, which translates to ‘Limited Stay Permit Card.’ In the past, the government issued physical cards but this process has since been digitized, which means KITAS is now known as ITAS. Either way, you may hear it being referred to as a Working KITAS or ITAS, although they mean the same thing. Having one will allow you to stay in Indonesia longer-term, open a bank account and travel in and out of the country freely as long as it's valid.
Working KITAS/ITAS: Employment in Indonesia
If you plan to work for an Indonesian company, it's an absolute must that you obtain a Working KITAS. It's important to note that working without the correct paperwork can result in expensive fines and even deportation, so it really isn't worth the risk. Getting a Working ITAS will entitle you to live and work in Indonesia doing the specific role for which you were employed. However, in order to get a Working KITAS, you need to be sponsored by an Indonesian company - you can't apply for it by yourself. The duration of your Working KITAS will depend on the type of work you do. For some roles, it could grant you up to one year of residency, whereas for the Entertainment Working KITAS, the duration is only 6 months.
Foreigner coaches are required to hold Working KITAS permit to legally work in Indonesia.
Eligibility Requirements and Limitations:
You can only work for your sponsoring company in the job title stated on your Working KITAS. You must provide several documents, such as a college diploma, a work experience certificate and travel insurance.
The company that sponsors you must provide their sponsoring paperwork correctly too, including registering their PT with BPJS (national healthcare & social security system) and proving a certain number of Indonesian employees hired to justify hiring a foreign national.
You must fulfill your tax obligations in Indonesia. For more information on personal income tax brackets in Indonesia, please read our guide here.
Investor KITAS: Investing in Indonesia
If you don't have an Indonesian sponsoring company, then unfortunately, a Working KITAS isn't an option, but it may still be worth exploring an Investor KITAS. The Investor KITAS is a multi-entry visa that grants you two years in Indonesia and is valid for individuals who invest in an Indonesian company, which is also known as a PT PMA. In order to be eligible, you need to be a legal shareholder with a personal share of at least 10 billion rupiah. It's important to note that this isn't a working visa but more of a residential visa that gives you the option of living here and travelling in and out of the country freely.
Legitimate shareholders in Indonesian PT PMA may qualify for 2 years Investor KITAS.
Eligibility Requirements and Limitations:
As of October 2023, the eligibility requirements for Investor KITAS have changed. Previously, the required share for applicants was 1 billion rupiah, but this has since increased tenfold to 10 billion rupiah. You should provide PT PMA paperwork proving your ownership. New applicants have to meet the latest requirements, and existing holders have until January 2025 to become compliant.
You can't work using this KITAS, unless you are the Director of a PT PMA. In such a case, you can do the duties of a Director only.
You should have personal bank statements from the last 3 months with a minimum closing balance of 2,000 USD
Your PT PMA should have business bank statements from the last 2 months with a minimum closing balance of 35,000,000 rupiah.
Choosing the Right Visa
Whether you choose to get a Working KITAS or Investor KITAS really depends on the options you have available to you, your finances and your career goals. If you have an employment offer from an Indonesian company, a Working KITAS is the appropriate choice. If, on the other hand, you're planning to invest in a PMA and live in Indonesia, the Investor KITAS would be more suitable.
Many people aspire to both work in and invest in their own company, but for foreigners in Indonesia, it's not always that straightforward. Take the example of a yoga teacher who dreams of owning a yoga business while simultaneously teaching students. As a foreigner with a company in Bali or Indonesia, the only role you can actually hold is that of Director. This means you cannot teach in your own company, since the Director is only permitted to do certain duties related to their role. In such a case, you must determine which role is better suited to your goals, and in the case that your passion is for teaching, you may need to pursue being sponsored for a Working KITAS at a yoga school rather than having your own company.
If you need help with assessing your options, eligibility, or starting your application, don't hesitate to contact us here at Bali Solve. We love helping people find ways to make their plans and goals a reality whilst freeing them from the stress related to getting a visa. You are welcome to contact our knowledgeable team via Whatsapp or drop by our office in Pererenan for assistance.
Written by Team Bali Solve
