Investor stay permits are a crucial aspect of doing business in Indonesia, particularly for foreign investors. The government provides the Investor KITAS, which allows foreign investors to reside and run businesses legally in Indonesia. However, managing the process of obtaining an investor stay permit can be complex, with many requirements to fulfill.
To support you in handling investor stay permits, let’s explore the types of permits, the application process, the benefits involved, and practical tips to simplify the submission.
Why Are Investor Stay Permits Important?
A stay permit certifies that a foreign investor meets the legal requirements for temporary residency while conducting business activities in Indonesia. Key reasons for its importance include:
Legal Compliance
Foreign investors who conduct business without a valid stay permit are in violation of Indonesia’s immigration laws. A legal permit offers certainty and allows investors to focus on business development.
Regulatory Adherence
Indonesia enforces strict immigration rules for investors. Holding a stay permit signifies compliance and provides legal protection.
Recognition of Economic Contribution
Foreign investment contributes technology, employment, and economic development. The issuance of a stay permit is the government’s way of acknowledging this contribution to national growth.
Types of Investor Stay Permits
According to the Ministry of Immigration and Corrections, several types of investor stay permits are available based on the investor’s profile and business plan:
- Limited Stay Visa for Foreign Direct Investment (E28):
Allows business and investment activities, including holding a director or commissioner role. Valid for 2 years. - E28A Visa:
Similar rights to E28, but requires proof of minimum IDR 10 billion in shareholding. - E28B Visa:
For investors establishing a company. Valid for up to 5 or 10 years. Requires immigration guarantee and minimum investment of USD 2,500 (5-year) or USD 5,000 (10-year). - E28C Visa:
For investments in public company shares, government bonds, or mutual funds. Valid for 5 or 10 years. - E28D Visa:
For directors/commissioners of subsidiaries or branches in Indonesia. Requires minimum investment of USD 25,000 or USD 50,000, with a maximum stay of 5 or 10 years. - E28F Visa:
Same as E28D, but the business is located in Indonesia’s new capital (IKN). - E28E Visa:
For investors in Special Economic Zones. Requires minimum IDR 10 billion in shareholding, valid for 5 or 10 years.
Stay Permit Application Process
The process for acquiring an investor stay permit involves multiple steps and substantial documentation.
Prepare Documents from the Sponsoring Entity:
Including:
- Company’s deed of incorporation and articles of association approved by the relevant ministry
- Company NIB and business license
- Company tax number (NPWP) and taxpayer status certificate (KSWP), business domicile certificate
- Business activity report
- Director’s ITAS and passport or local director’s ID
- Local director’s NPWP and KSWP
Prepare Investor Documents:
- Valid passport
- Digital 4×6 photo
- Vaccination record
- Residential address
- Scanned copy of current visa if applying domestically
Submit the Application:
- Offshore process: If the investor is outside Indonesia, the application is submitted online.
- Onshore process: With a letter of recommendation from BKPM, procedures are completed at the nearest immigration office.
Processing time averages around 4 weeks or more. Ensure all documents are complete and accurate for a smooth process.
Benefits of Obtaining a Stay Permit
In addition to legal protection, a valid investor stay permit offers the following advantages:
- Freedom to Conduct Business Activities:
Includes managing investments, company formation, and overseeing production operations. - Bringing Family Members:
Investors can bring their families to reside in Indonesia, subject to immigration regulations. - Flexible Travel In and Out of Indonesia:
As long as the Re-Entry Permit is valid, investors can travel without reapplying for a visa every time—ideal for business meetings, negotiations, and expansions. - Access to Public Services:
Investor stay permits facilitate access to banking, travel, and even education services for family members—enhancing both operational and lifestyle quality while in Indonesia.
Tips for Managing Investor Stay Permits
While complex, the following tips can help ease the process:
- Stay informed on the latest regulations, as immigration and investment rules can change.
- Prepare complete and accurate documentation to expedite verification.
- Follow the process step by step to avoid administrative delays.
- Allocate sufficient budget and time to avoid disruption to core business operations.
- Use the services of a trusted business consultant experienced in investor visa processing.
Possessing a valid investor stay permit is not just a legal obligation—it’s a strategic move that supports smooth business operations in Indonesia. It strengthens investor credibility and demonstrates a commitment to contributing positively to the national economy.
If you’re unsure where to begin, Elmar Consultant Business Indonesia offers professional assistance with investor stay permit applications. Get in touch now to receive expert support tailored to your investment needs!