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Indonesia: New Law Expands Activities Allowed for Visa-Exempt Nationals; Implements Some Restrictive ITAS Rules

December 14, 2023

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  • IndonesiaIndonesia

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At a Glance

The Ministry of Law and Human Rights issued a new regulation which amended several immigration laws. Key changes include:

  • the expansion of permitted activities for visa-exempt nationals and those eligible for visas-on-arrival;
  • increased monetary requirements for individuals who are part of a foreign company who are applying for Investor Limited Stay Permits (ITAS) and Permanent Stay Permits; and
  • increased minimum property value requirements for individuals applying for Second Home Visas.

The situation

The Ministry of Law and Human Rights issued a new regulation which amended a number of immigration laws, effective November 2, 2023.

A closer look

Changes to immigration laws include the following:

Change

Details

Impact

Expanded allowable activities for visa-exempt nationals

 

  • Visa-exempt nationals can now travel to Indonesia for family reunion, medical treatment, or as an on-duty crew member, pilot or captain.
  • Previously, visa-exempt nationals could only enter Indonesia for tourism.

 

This expansion will save money and time for eligible nationals, who previously had to obtain a visa to enter Indonesia.

Expanded allowable activities under visa-on-arrival

 

  • Individuals eligible for a visa-on-arrival can now enter Indonesia for medical treatment and family reunion under this status.
  • Previously, visas-on-arrival only allowed tourism.

 

The expansion of the use of the visa-on-arrival will make it easier and more cost-effective for individuals from eligible countries to enter Indonesia for more activities.

Increased monetary requirements for Foreign Investment Company (Investor Limited Stay Permit (ITAS) and Permanent Stay Permit (ITAP)

 

  • Directors and Commissioners of a company in Indonesia who are also shareholders of the company who are applying for an ITAS are now required to show a personal net worth minimum of IDR 10 billion (approximately USD 647,719), up from the previously required IDR 1 billion. If they are a shareholder who does not hold a position in the company, the minimum has also risen to IDR 10 billion, up from IDR 1.25 billion.
  • Directors and Commissioners of a company in Indonesia who are also shareholders of the company who apply for an ITAP must show a minimum personal net worth of IDR 15 billion (approximately USD 971,578.50), up from the previously required IDR 1 billion. If they are a shareholder who does not hold a position in the company, the minimum has also risen to IDR 15 billion, up from IDR 10 billion.

 

  • The minimum monetary requirements for individuals applying for ITAS and ITAP has risen significantly, which may decrease the number of individuals able to obtain an ITAS or ITAP.
  • Furthermore, individuals should note that the requirements for those holding a Director or Commission position who are also shareholders and those who do not hold such positions but are shareholders are now the same; previously, requirements increased for those who did not hold such a position with the company.
  • Additionally, processing of the ITAS and ITAP may take longer as authorities verify that investors meet the minimum monetary requirements.

Second Home Visa 

 

  • Individuals applying for a Second Home Visa are required to buy a property worth at least USD 1,000,000 or its equivalent, and must prove bank savings of at least USD 130,000, whereas previously, there was no minimum property purchase requirement (only a bank savings requirement of USD 130,000).
  • Additionally, applicants for this visa are no longer required to obtain a domicile letter and Surat Keterangan Tempat Tinggal (SKTT)/Residence permit (a letter from the residence confirming they reside in the property); instead, they can now obtain a statement letter confirming their residence and guarantee letter provided by the applicant or guarantor.

 

Since the statement letter is easier to obtain than the domicile letter, this may in some cases speed up the government processing time for this visa, in some cases.

 

Background

The new regulations, including the Second Home Visa and Investor Visa, are expected to increase investment in Indonesia to spur the economy post-pandemic, by attracting wealthy foreign nationals, professionals, investors and retirees to Indonesia, while maintaining a selective approach toward foreign nationals in order to maintain local employment rates.

Looking ahead

Indonesia’s recent regulatory changes are expected to continue to grow the country’s economy; however, the February 2024 presidential elections could potentially change the direction of these immigration policies, depending on the results. Fragomen will provide updates on any major impacts as they become available.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected]. We worked closely with PNB Immigration Law Firm to prepare this alert.

Country / Territory

  • IndonesiaIndonesia

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