As part of Indonesia’s ongoing commitment to improving its investment climate and positioning itself as a leading destination for foreign direct investment (FDI) in Southeast Asia, the Indonesian government through the Ministry of Investment/Investment Coordinating Board (BKPM) has introduced a series of regulatory reforms affecting the issuance of the Investor KITAS (Limited Stay Permit for Foreign Investors).
Under the latest regulatory framework The Minister of Law and Human Rights Regulation Number 22 of 2023 (Permenkumham No. 22/2023) further details of the Visas and Stay Permits Foreigners require to enter and stay in Indonesia, foreign nationals who wish to obtain an Investor KITAS are now required to demonstrate personal shareholding in an Indonesian company of no less than IDR 10 billion.
These changes are aligned with the government’s broader objective of encouraging substantive, long-term investment contributions from foreign individuals, while simplifying certain immigration procedures for bona fide investors. The new regulation not only raises the capital threshold but also tightens compliance with corporate transparency and investor identity.
This article outlines the updated eligibility requirements, the step-by-step application process, the recommendation procedures mandated by the Ministry of Investment/BKPM, and the legal and operational benefits available to holders of an Investor KITAS. Additionally, we will address the practical distinctions between this permit and other visa types, particularly in relation to guarantee fund obligations, duration of stay, and permissible business activities.
Shareholding Requirement: Minimum IDR 10 Billion in Personal Ownership
Under the newly enacted regulatory provisions, foreign nationals seeking to obtain an Investor KITAS (Limited Stay Permit for Investors) in Indonesia must now meet a clear and substantial investment threshold. Specifically, the applicant is required to hold shares in an Indonesian limited liability company (Perseroan Terbatas or PT/PT PMA) with a minimum value of IDR 10 billion, registered directly under their personal name.
This ownership cannot be substituted or represented through a third-party nominee, proxy arrangement, or corporate entity. The regulation mandates personal, direct, and traceable equity ownership to reinforce transparency and legal certainty in the investment process.
The rationale behind this requirement is to filter and prioritize applicants who demonstrate a genuine and committed economic interest in Indonesia. By requiring substantial personal capital investment, the government seeks to ensure that recipients of the Investor KITAS are not passive beneficiaries but are actively contributing to Indonesia’s economic landscape either through equity participation, long-term business activity, or local employment generation.
Furthermore, this policy is aligned with the government’s broader agenda of encouraging responsible foreign direct investment (FDI), enhancing regulatory oversight, and minimizing potential risks associated with shell companies or fronting arrangements.
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Mandatory Recommendation from the Ministry of Investment / BKPM
In accordance with the latest regulatory framework governing the issuance of the Investor KITAS, foreign nationals are required to secure a formal recommendation from the Ministry of Investment/Indonesia Investment Coordinating Board (BKPM) prior to submitting their application to the Directorate General of Immigration.
This mandatory endorsement serves as official validation of the applicant’s investment in Indonesia and confirms their active involvement in the company either as a shareholder with a minimum capital threshold or as a member of the Board of Directors or Commissioners.
The Recommendation Process Includes:
- Submission of Legal Corporate Documents: Applicants must submit comprehensive corporate documentation, including but not limited to:
- Deed of Establishment and subsequent amendments
- Business Identification Number (NIB)
- Operational records from the Online Single Submission (OSS) system
- Proof of Shareholding: The applicant is required to present an updated Shareholder Register (Daftar Pemegang Saham) or legally notarized AKTA reflecting personal ownership of at least IDR 10 billion in company equity.
- Endorsement Filing via BKPM namely OSS: The recommendation request must be submitted through BKPM’s official platform or with the assistance of authorized legal representatives or consultants registered in Indonesia.
This recommendation acts as an administrative gatekeeper, confirming the legitimacy and economic value of the foreign investor’s involvement before the KITAS application proceeds to the immigration authority.
Validity Period: 1 to 2 Years
The Investor KITAS (Limited Stay Permit for Foreign Investors) is issued with a flexible validity period of either one (1) or two (2) years, in accordance with the applicant’s level of involvement in the investing company and the nature of the shareholding structure.
This flexibility in duration allows the Indonesian government to distinguish between passive investors and active executive shareholders, thereby aligning immigration policy with the practical needs of corporate governance and business operations.
1-Year KITAS
The 1-year Investor KITAS is generally granted to foreign nationals who qualify based on personal shareholding, but do not actively participate in the day-to-day management of the sponsoring company. This category typically includes:
- Passive shareholders
- Board observers or non-executive stakeholders
- Foreign investors who are not formally registered as Directors or Commissioners
2-Year KITAS
The 2-year Investor KITAS is reserved for foreign nationals who:
- Possess the required shareholding (minimum IDR 10 billion in their personal name), and
- Hold a formal position within the company’s corporate structure, such as:
- Director
- Commissioner
- President Director or equivalent executive position
This extended validity is designed to facilitate longer-term residency and continuity of operational oversight, particularly for those engaged in strategic decision-making and governance within the Indonesian legal entity.
Strategic Flexibility for Investors
This dual-duration framework not only supports short-term project-based investors, but also accommodates those seeking long-term economic presence in Indonesia. It further reinforces the government’s commitment to creating a stable and investor-friendly immigration environment.
Whether the objective is monitoring investments remotely or directly managing business operations on-site, the Investor KITAS provides a legal and practical structure that adapts to diverse investor profiles.
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No Government Guarantee Fund Required
A major advantage of the Investor KITAS over the Work KITAS (Index 312) is its exemption from the mandatory government guarantee fund or security deposit, which is typically required under employment-based immigration schemes.
In most cases, a Work KITAS application mandates that the sponsoring company deposit a fixed sum often up to USD 1,200 per year per expatriate into a government-managed fund, commonly known as the Compensation Fund (DKPTKA). This fund is designed to support skill development and workforce programs for local employees.
However, under the Investor KITAS scheme, this obligation is waived. The rationale is based on the investor’s substantial equity participation in the company, which is viewed as a long-term economic contribution rather than short-term labor engagement.
This exemption offers two significant advantages:
- Cost-Efficiency: Reduces upfront financial commitments for both the applicant and the company.
- Simplified Process: Streamlines immigration compliance by removing an additional layer of regulatory procedure.
This regulatory benefit further underscores Indonesia’s intention to attract genuine investors and promote capital infusion into local enterprises without imposing unnecessary burdens.
Permitted Activities for Investor KITAS Holders
Foreign nationals holding a valid Investor KITAS are granted a broad range of lawful rights and activities in line with their investment role. These permissions ensure that investors are not only able to reside in Indonesia, but also fully engage in the governance and strategic development of the invested company.
Permitted activities under the Investor KITAS include:
- Residency Rights:
Lawful stay in Indonesia for the full duration of the KITAS validity (1 or 2 years), with eligibility for renewal upon fulfillment of conditions. - Active Corporate Involvement:
Participation in management, decision-making, and operational oversight of the sponsored company. - Corporate Office Holding:
Appointment as Director, Commissioner, or other executive roles formally registered in the company’s deed and OSS system. - Access to Financial and Legal Infrastructure:
- Opening of local bank accounts
- Execution of property lease agreements
- Participation in legal transactions under Indonesian law
- Dependent Sponsorship: Right to sponsor dependent KITAS for immediate family members, including spouse and children, allowing family unity and relocation convenience.
Important Note:
The Investor KITAS does not authorize general employment in a company where the holder is not an equity stakeholder. It is strictly intended for those who contribute capital and engage in company governance. Misuse of this permit for unrelated employment purposes may result in administrative sanctions or revocation by immigration authorities.
Conclusion: Begin Your Investor KITAS Journey with ET Consultant
Navigating the complexities of obtaining an Investor KITAS in Indonesia can be a challenging and time-consuming process, especially for foreign nationals unfamiliar with the regulatory landscape. With the recent updates to Indonesia’s immigration and investment policies, including the shareholding requirements and the mandatory recommendation from the Ministry of Investment/BKPM, the need for professional legal assistance has never been greater.
ET Consultant stands at the forefront of providing comprehensive support for foreign investors seeking to establish or expand their business presence in Indonesia. Our team of expert legal consultants is deeply versed in the immigration law, BKPM procedures, and corporate compliance required to facilitate a smooth and efficient Investor KITAS application process.
Choosing ET Consultant means choosing a trusted partner with deep expertise in Indonesian immigration law and business regulations. Our commitment to legal clarity and efficiency ensures that you can focus on your investment, while we manage the complexities of the administrative processes.
Get in touch with us today to begin your Investor KITAS journey with confidence and legal certainty. Whether you’re looking to invest in a new venture or expand your existing operations, we are here to guide you every step of the way.
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ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.
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