Visa for Doing Business in Indonesia: A Thorough Investor Guide

Indonesia emerges as one of the most lucrative countries to do business in South East Asia. It has the SEA’s largest economy and a population of over 260 million people. There are also a number of free trade agreements in place that allow access to markets in ASEAN, China, Japan, South Korea, and India. With stable economic growth and a young population, the country provides numerous opportunities for businesses. Not surprising if you want to take your next business ventures to this country. Before entering the country, however, you need visa—and Indonesia has multiple kinds of visas for business that you need to understand.

The Business Visa

Before starting your business in Indonesia, you might need to enter the country for some research purposes, meet prospective partners, visit potential locations, conduct negotiations, or any other activities related to your business. The business visa allows foreigners to enter the country to carry out business activities. However, this visa does not give you permission to start a business in Indonesia, work for a company, or receive any kind of salary.

Single Entry Business Visa

For investors who are still testing the waters and see if Indonesia is a good fit for their business, they might only need a single-entry business visa. A single-entry business visa has a maximum stay of 60 days.

This type of visa must be obtained from an Indonesian embassy abroad. The single-entry visa can be extended five times by applying to the Immigration Authorities in Indonesia. However, if you leave Indonesia after your single-entry visa has expired, you will be unable to renew it and will be required to apply for a new visa.

Multiple Entry Business Visa

The multiple-entry business visa is perfect for investors who need multiple trips to Indonesia in order to prepare and establish their businesses. The Immigration Office in Indonesia issues the multiple-entry business visa, which is valid for up to 12 months.

This visa allows you to enter and exit Indonesia multiple times within a 12-month period. However, because each stay is limited to 60 days, you will need to leave Indonesia on a regular basis.

Working Permit

In Indonesia, many people do not understand the distinction between a work permit and a business visa. Whether you’re an aspiring businessman, attending a business conference in the country, or a company sending employees to Indonesia for a project, determining which of the two visas is required can be quite tricky.

A business visa, as explained above, is required for conducting business tasks such as attending a conference, taking unpaid training, or meeting a business partner. With this visa, you are not permitted to work in an Indonesian (whether local or foreign-owned) company or take any kind of earnings. The working permit, on the other hand, allows you to work legally in Indonesia for a certain period of time. The working permit in Indonesia is called ITAS (izin tinggal terbatas or limited stay permit). It is the responsibility of the employer to apply for an ITAS on behalf of potential employees.

The process starts with the employer applying for a VITAS (visa izin tinggal terbatas or limited stay permit visa). They will require formal government approval before proceeding. The employer must also apply for an Expatriate Placement Plan (Rencana Penempatan Tenaga Kerja Asing, or RPTKA for short) from the Ministry of Manpower in Indonesia. When it’s approved, the working permit is valid from one to twelve months, depending on the type of industry and the type of sponsor from the expatriate placement plan. There are three types of working permit validity;

The Emergency Working Permit – The validity lasts only for one month, suitable for urgent jobs that need immediate action.

Temporary Working Permit – The validity lasts for two to six months, and it is intended for temporary foreign employees who were temporarily working in Indonesia for machinery installations, consultations, services, consulting, and more.

Long-Term Working Permit – It is also known as a standard work permit and is valid for 7 to 12 months for ex-pats in higher management positions such as managers, directors, and commissioners.

The Investor Visa

The Investor Visa, also known as the Investor KITAS, is a type of stay permit available only to foreigners who own shares in an Indonesian company. It is designed specifically for business investors in Indonesia, allowing them to live and manage their businesses in the country. The investors can legally stay and conduct the business with just the investor visa without applying for a separate working permit. There are two types of investor KITAS or investment visas: Index 313, which allows investors to stay in the country for one year, and Index 314, which allows investors to stay for two years. Both permit multiple entries and exits from the country.

The Investor Visa, also known as the Investor KITAS, is a type of stay permit available only to foreigners who own shares in an Indonesian company. It is designed specifically for business investors in Indonesia, allowing them to live and manage their businesses in the country. The investors can legally stay and conduct the business with just the investor visa without applying for a separate working permit. There are two types of investor KITAS or investment visas: Index 313, which allows investors to stay in the country for one year, and Index 314, which allows investors to stay for two years. Both permit multiple entries and exits from the country.