Obtaining residence permit in Indonesia

There exist several key routes through which foreign nationals may pursue permission to legally long-term residency in Indonesia:

Options to obtain a residence permit through investment in Indonesia

This residence permit enables foreign businessmen and investors to legally reside and conduct commercial activities in Indonesia. Two variants exist — the 1-year and 2-year Investment KITAS, both renewable up to 5 years.

The key prerequisites are:

• Holding foreign shareholder status in a PT PMA with minimum issued capital of IDR 10 billion (~USD 650,000)
• Personal contribution of at least IDR 1 billion (~USD 65,000) towards share capital
• Possessing a corporate registration number (NIB) in the case of newly formed companies

The immigration authorities have eased the application process by removing the requirement for a recommendation letter from the Investment Coordinating Board (BKPM). Instead, foreigners can now directly apply online for a Telex VITAS, which permits entry into Indonesia within 90 days to convert into an Investment KITAS. The conversion process takes approximately 10-14 working days, upon which the foreigner is officially granted an Investment KITAS to legally reside and work in the country.

Typical processing time is 6 weeks. In Jakarta, the Investment KITAS costs IDR 15 million (~USD 975) for 1 year, and IDR 18 million (~USD 1,170) for 2 years. The 2-year option is generally preferred for greater security and savings.

Golden Visa Programme

This programme enables foreign investors to procure 5 or 10-year residency rights in Indonesia contingent on prescribed investment thresholds into the local economy.

Possible routes under the Indonesia Golden Visa Programme:

New investments:

• 5-year golden visa – Establish a company with a minimum investment of USD 2.5 million
• 10-year golden visa – Company establishment with a minimum investment of USD 5 million

Investment via existing foreign company:

• Minimum deposit of USD 350,000 into government bonds, publicly listed equities or savings accounts.

The Golden Visa in Indonesia thereby presents a valuable opportunity for foreign investors seeking to establish commercial interests in the country alongside secured residence status.

Second Home Programme

Indonesia attracts foreign nationals who can positively impact the local economy for 5 or 10-year residence scheme. Other eligible categories include global talent visa holders, diaspora members and senior tourists.

Key requirements:

• 36-month valid passport
• Proof of funds of minimum IDR 2 billion (~USD 130,000) in personal or guarantor bank account
• Biography

Application process:

1. Engage programme agency as guarantor
2. Verify applicant reliability
3. Submit documents and apply for entry e-visa
4. Enter Indonesia and fulfil investment terms by transferring USD 130,000 to a local bank
5. Pay state fees and register Visa with immigration

Terms for family members:

• Eligible family members like spouses, children, and parents can apply concurrently by meeting the above requirements and paying appropriate state fees.

Besides residence rights, the Second Home Programme permits beneficiaries to undertake business activities, real estate investments and optimise tax exposure in Indonesia. Spending over 180 days a year renders foreign nationals to be deemed tax residents.

The aforementioned schemes offer strategic global investors, businessmen, and high net-worth individuals a pathway to a residency and conducting commercial undertakings in Indonesia.

Benefits and limitations of Indonesian property ownership

Acquiring real estate in Indonesia proffers noteworthy upside but demands prudent evaluation of attendant risks and restrictions.

Indonesia's relatively affordable property prices compared to the West prove favourable, especially for average investors seeking second homes. The extensive selection — from seafront villas to urban condominiums — allows customized picks suiting diverse tastes.

The spectacular locales, sunny climate and cultural riches establish the country as a thriving tourist haven. Consequently, rental yields for well-located holiday homes could plausibly reach 10-15% each year. Moreover, capital appreciation upon resale may clock 50% owing to strong property price growth.

• Legal constraints. Indonesian law largely debars foreign individuals from directly purchasing local realty. However, corporate vehicles with prescribed overseas equity participation may invest in property. But given the fluid legislative landscape, rights may narrow.
• Infrastructure risks. Remote regions in particular may suffer from patchy basic amenities like electricity, water and road connectivity.
• Currency risks. The Indonesian Rupiah exhibits marked volatility against major global currencies.

In summary, whilst Indonesian property investments offer exciting potential returns, interested parties must carefully evaluate inherent legal, infrastructural and economic risks beforehand. We strongly advocate procuring expert counsel to ensure transactions align with personal risk-return preferences and prevailing regulations.

Securing permanent residency in Indonesia

Indefinite Leave to Remain (ILR), known locally as KITAP, represents the permanent Indonesian residence rights. Key eligibility criteria are outlined below:

Length of residence

Save for certain exceptions, foreign nationals must generally accrue 5 years of unbroken residence under a valid KITAS visa to apply for ILR. This demonstrates meaningful connections with Indonesia. Exceptions: a shorter 2-year tenure suffices for foreign spouses of Indonesian citizens before ILR eligibility kicks in.

Financial sufficiency

Applicants must furnish ample proof of financial capacity to independently sustain themselves and any dependents. Common documentation includes bank statements and income proofs.

Supporting documents

A comprehensive bundle of valid identification and background clearance certificates need submitting alongside the ILR application. This includes:

• Valid KITAS
• Passport
• Biometric information
• Police clearance certificate
• Application mechanisms

ILR requests must be directly filed with the Immigration Authority. Applicants may undergo interviews and verification checks on submitted documents.

Guarantor requirements

Some visa categories necessitate formal sponsorship from either an Indonesian citizen or locally registered entity.

Fees

Prevailing ILR administrative charges are set by government tariffs, subject to periodic revisions.

Post-grant rights

ILR conferrals greatly strengthen foreign beneficiaries' prospects and liberties to study, work and reside in Indonesia through relaxed mobility conditions. ILR holders also progress towards full Indonesian citizenship after fulfilling residency prerequisites.

Evidently, securing ILR warrants advance planning and examination of Indonesia's multi-faceted immigration system. We strongly advocate that interested parties obtain expert legal guidance to navigate current requirements before proceeding.

Please contact us if you need any clarification or have additional questions to further steps on obtaining habitual residency in Indonesia.

Naturalisation as an Indonesian citizen

Acquiring Indonesian citizenship demands extensive residency spanning 5 continuous or 10 cumulative years, and satisfying additional prerequisites:

• Applicants must be over 21 years old.
• Adequate mastery of the state language must be evidenced through recognised qualifications to demonstrate sociocultural integration.
• Robust documentation affirming the capacity for economic self-sufficiency for oneself and dependents is necessitated.
• Applicants should carry no historical or ongoing criminal convictions in Indonesia or elsewhere.
• Gainful employment or active participation in socially impactful work holds additional merit.
• As Indonesian law prohibits dual nationality, applicants must be prepared to relinquish existing citizenship status held in other countries.

Substantive documentation must be submitted to the Immigration Affairs Directorate in Indonesia for extensive verification which may encompass language testing, intercultural fluency assessments and background screening procedures.

The Indonesian citizenship process mandates thorough counsel to traverse the complex statutory terrain, which is subject to change over time. We therefore strongly advise advance consultation with accredited Indonesian immigration law experts to evaluate eligibility and acceleration prospects.

Comparing residence options in Indonesia

In summary, Indonesian citizenship furnishes the deepest degree of socioeconomic participation — spanning unconstrained rights to live, work, conduct business, own property and access public services. KITAP holders operate under moderately fewer restrictions relative to KITAS beneficiaries across those dimensions, but do not enjoy full privileges.

Conclusion

Obtaining residential rights in Indonesia's resplendent archipelago unlocks a gateway to participating in one of Asia's most vibrant emerging economies whilst residing in locales famed for cultural richness and awe-inspiring natural beauty.

Yet, prospective applicants must carefully evaluate if they meet the stringent eligibility criteria for the various immigration pathways on offer. Securing any variant of stay permission — whether temporary, permanent, or full citizenship — mandates submitting comprehensive documentation affirming one's professional, financial and character credentials for intensive vetting by the authorities.

Whilst Indonesia's burgeoning economy promises lucrative opportunities, navigating the complex regulations necessitates expert guidance. Interested foreigners are thus strongly advised to first contact our firm's accredited immigration specialists to book counsel on the Indonesian visa programmes aligned with their background, resources, and aspirations in Indonesia.

Our consultants would be pleased to schedule an initial consultation to discuss preliminary prospects and key considerations for those keen on relocating to or investing in Indonesia. Please reach out through the communication channel most convenient for you from the options listed on our website.