Currently, there are 12 Special Economic Zones (SEZ) in Indonesia. Each of SEZs is developed for specific sectors. The existing SEZs are:
To establish a foreign direct investment company in Indonesia you must first decide what business sector you are going to invest based on Indonesian Classification for Business Sector (Klasifikasi Baku Lapangan Usaha Indonesia or KBLI).
Then, you must check whether the business sector is open with requirements or closed for foreign direct investment based on the Presidential Regulation about Negative Investment List (Daftar Negatif Investasi or DNI). If the business sector which you are interested in is not regulated, and no other restrictions from related technical ministries, then it means the business sector is open for foreign direct investment with a maximum foreign ownership of 100%.
The legal entity of the Foreign Direct Investment or FDI company should be a Limited Liability Company or Ltd (Perseroan Terbatas or PT). The ‘PT’ company should be owned by a minimum of 2 shareholders. Those can be individual or corporate shareholders or a combination of both.
The minimum investment for an FDI company is above IDR 10 billion (excluding land and building cost), while the minimum paid up and issued capital is IDR 2.5 billion. For each shareholder, at least IDR 10 million or its equivalent in USD is required.
Yes, you can set up a company in any part of Indonesia. However, there are restrictions for some business sectors in certain regions, Industrial Law No. 3 Year 2014 and Government Regulation No. 142 Year 2015 has mandated that any industrial activities shall be located in industrial estates.
Today, the Indonesian Industrial Estates Association (Himpunan Kawasan Industri Indonesia or HKI) has 87 company members, in 18 provinces, covering a total gross area of about 86,059 hectares. There are more than 9,950 manufacturing companies operating and these figures do not include industrial estates non-HKI members.
Main attractions of industrial estates are that the development is comprehensively planned to assure a strategic location, accessibility, building ratio, infrastructure and supporting services, secured land titles, and continuous maintenance and operation management, as well as integrated environmental management.
Several industrial estates will be developed until 2019, 14 of those located outside Java Island will be allocated for the natural resources-based processing industry. While the other 2 in Java Island will be allocated for labor-intensive, high-technology, and consumer goods industry.
The process of company establishment in Indonesia requires Investor to issue Article of Association and legalization of the company, including taxpayer number (Nomor Pokok Wajib Pajak or NPWP), through Public Notary.
Yes, a foreign investor could set up a Representative Office to study the market. Foreign Representative Office (Kantor Perwakilan Perusahaan Asing or KPPA) is an office incorporated by an overseas company to represent itself in Indonesia.
Foreign Representative Office usually has limited functionality and generally are prohibited from directly engaging in operational activities, signing contracts, issuing official invoices, receiving payments from its clients, and directly engaging are other profit-generating activities.
The requirements and procedure to form a representative office in Indonesia is governed by the Regulation of BKPM No. 6 of 2018 regarding Guidelines and Procedures for Licensing and Facility of Investment. To obtain the license, all requirements should be submitted online at https://nswi.bkpm.go.id
The functionality of KPPA is limited to:
Important Notes for KPPA:
The regulation of the Central Bank of Indonesia requires that all banking transactions (such as capital injection, administration of loans, payment of capital equipment, raw material, etc.) of a newly established PT. PMA should be administered through a special foreign investment bank account in Indonesia. In general, the required documents to open such account are as follows:
Basically, to start a business company should obtain the following licenses:
Yes, There are. You can get them through OSS (Online Single Submission). An online system creates by Indonesia Government to simplify your investment registration.
All new and existing individual or business entity (Include MSMEs) and representative office can register through OSS Account.
I. Registering OSS Account
II. Single Business Number (NIB)
1. Log in to https://oss.go.id
2. Fill the data as follows:
3. NIB also serves as:
III. Business License is a license to start business operations
IV. Location Permit (Izin Lokasi)
V. Environmental Permit (Izin Lingkungan)
An environmental permit is given to investors for conducting business and/or activity which requires an environmental protection plan (Analisis Mengenai Dampak Lingkungan or AMDAL, Upaya Pengelolaan Lingkungan Hidup - Upaya Pemantauan Lingkungan Hidup or UKL-UPL):
VI. Building Construction Permit (Izin Mendirikan Bangunan or IMB)
Building Construction Permit is issued by the local government (Regency/City) to the company in order to build new, alter, expand, decrease, and/or foster building:
Maximum 30 days after receiving a building permit from OSS, investors should start to fulfill its commitment to regional government or if the project required AMDAL, the fulfillment of commitment of ‘IMB’ is 30 days after the completion of AMDAL.
VII. Commercial/Operational License
The license is required when the company is ready for starting commercial/ operational stage:
The investor should make payment of non-tax state revenue (Penerimaan Negara Bukan Pajak or PNBP), retribution or regional levies as required and send payment receipt to OSS System:
IX. Expansion of Business Licenses and Data Renewal
Business licenses can be applied online through OSS except for several business sectors. They are financial, mining (oil and gas, mineral and coal, and geothermal), and property sectors.
For these sectors, licenses can be applied through One Stop Service Center (Pelayanan Terpadu Satu Pintu or PTSP Pusat) BKPM.
Regarding the business licenses, PTSP Pusat has 3 types of service, that are:
Other than that, PTSP Pusat BKPM also provides consultation and complaint services.
PTSP Pusat at BKPM is established to provide a simpler, faster, more transparent and integrated service for investors in Indonesia.
At the PTSP Pusat, there are Representative Officers from 19 ministries and government institutions providing consultation and accepting the application for licenses which are not included in OSS.
PTSP Pusat in BKPM offers activities such as:
Priority Service (Layanan Prioritas) is a service provided for eligible investors who meet requirements.
Through Priority Service, investors will obtain:
8 Types of licenses:
The criteria to get this service are:
The exemption from the above criteria is valid for:
Priority Service for ESDM Sector
Yes. Indonesian Government provides investment incentives as follows:
Import Duties as regulated in the Regulation of BKPM No. 6 of 2018 based on the Regulation of Minister of Finance No. 176/PMK.011/2009 of 2009 as amended by No. 188/PMK.010/2015 of 2015.
All investment projects of FDI as well as Domestic Direct Investment or DDI (Penanaman Modal Dalam Negeri or PMDN) projects which are issued by the Online Single Submission (OSS) system, will be granted the exemption of Import Duty so that the final tariffs become 0%. This facility applicable on:
According to the Regulation of Minister of Finance No. 66/PMK.010/2015, the exemption of import duty will also be granted to the importation of capital goods of electricity for an import period of 2 years and can be extended by a maximum 1 year. This facility is not applicable for transmission, distribution, supporting services and repairing equipment.
As stated in the Regulation of Minister of Finance No. 259/PMK.04/2016, the importation of goods in term of Contract of Work or CoW (Kontrak Karya or KK) or Coal Mining Business Work Agreement (Perjanjian Karya Pengusahaan Pertambangan Batubara or PKP2B) will be granted the exemption and/or relief from import duty based on the owned contract.
The application can be requested by attaching a recommendation letter from Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources of the Republic of Indonesia.
Tax Facilities (Tax Allowance) as regulated in the Regulation of BKPM No. 6 of 2018:
Based on the latest Government Regulation No. 18 of 2015 as amended by No. 9 of 2016, pertaining to Income Tax facilities for investment in certain business sectors and/or in certain locations, the domestic and foreign investors will be granted tax allowances in certain sector and/or area.
Facilities provided by the Government Regulation No. 18 of 2015 as amended by No. 9 of 2016 are:
For detailed information on the list of business sectors that are eligible for tax allowance, please refer to the Attachment I & II of Government Regulation No. 9 of 2016. There are 71 business sectors listed in Attachment I and 74 business sectors listed in Attachment II.
Procedure on the Application for Tax Allowance
Below is the framework on the application procedures:
The following procedures are the simplified framework on tax allowance application procedure. The full and complete detail of it is available in the Regulations of BKPM No. 6 of 2018.
According to the Regulation of the Ministry of Finance No. 35/PMK. 010/2018 and the Regulation of the Chairman of BKPM No. 5 of 2018 the applicant or company should meet the following criteria:
As regulated in the Ministry of Finance No.35/PMK.010/2018 of 2018 and the Regulation of BKPM No.5 of 2018, reduction in Corporate Income Tax (Tax Holiday) is given at 100% (one hundred percent) of the amount of the Corporate Income Tax owed. The period of the reduction is provided with the following conditions:
Starting in 2016, the government accelerates the customs clearance process for imported capital goods, aiming at speeding up a project under construction. Capital goods no longer need screening at the ports. So, it will cut the processing time from five days to only 30 minutes.
Since September 2015, the Indonesian government has been issuing several economic policy packages, among others, to improve the investment climate. We set a minimum wage formula so investors can predict the annual increase of wage, considering inflation and economic growth.
We support business to reduce their production costs, by cutting the price of fuel, gas, and electricity for industry. We revised the Negative Investment List (DNI) to be more open for foreign investment, specifically intended for sectors: industrial, creative economy, and tourism.
In Indonesia, minimum wage is the monthly wage payable to labor. It mainly consist of fixed basic wage that is stipulated by regional governor as safety net.
The latest Government Regulation No. 78 of 2015 regarding Wages (GR 78) introduces several important changes, notably those concerning the calculation of provincial minimum wages and the requirement that all employees in Indonesia be paid in Rupiah.
GR 78 implements the Article 97 of Law No. 13 of 2003 regarding Manpower, and repeals and replaces Government Regulation No. 8 of 1981 regarding the Protection of Wages.
The main points of GR 78 are:
Yes, based on State Law No. 24 of 2011, employer will have to contribute a certain share based on employee monthly wage into the social security funding programme. The programme will provide economic assurance for every employee’s wellbeing.
The new Social Security Agency for Workers and/or Health (BPJS-TK and BPJSKS) will continue to ensure that employer takes part in the mandatory social security programmes such as Pension Guarantee, Life Insurance, and Work-accident Insurance.
For more information on the details to social security pay-out structure, submission of application, working details, and latest updates please directly contact BPJS for Workers at www.bpjsketenagakerjaan.go.id and BPJS for Health at www. bpjskesehatan.go.id.
Yes, in the framework of investment, foreigners are allowed to hold positions where Indonesian nationals are not available or do not meet the requirements to do the job and subject to the conditions that such positions are open for foreigners. Foreigners can be employed in Indonesia only for certain positions and period.
Employers of foreign workers in this shall include:
The employers of foreign labor could be able to hire foreign workers only for a certain position and a certain time.
Employers of Federal Civil Firm (Firma or Fa), the Limited/Federal Partnership (Commandditaire Vennootschap or CV), Associated Business (Usaha Bersama or UB), Trading Company (Usaha Dagang or UD) are prohibited for employing foreign labor except as provided in the State Law.
For all FDI, a foreigner could hold a position as a member of:
According to the Attachment of Manpower Decree No. 40 of 2012, foreigner cannot hold a position as:
Companies employing foreigners are charged USD 100/month (USD 1,200) per year per foreign employee as a compensation fund for foreign workers (Article 40 Manpower Act No. 35 of 2015). This charge is administered through state-owned bank which is appointed by Minister of Manpower of the Republic of Indonesia.
First of all, employer (either DDI or FDI) should submit Foreign Worker Employment Plan (RPTKA) online application to the Ministry of Manpower of the Republic of Indonesia to get approval through link http://tka-online.naker.go.id.
Once approved, Ministry of Manpower of the Republic of Indonesia will issue RPTKA Endorsement to the employer.
Employee will then be able to apply for Limited Stay Visa (Visa Tinggal Terbatas or VITAS). General requirement for application as follows:
There are 2 options for VITAS application:
The foreign worker should apply for Limited Stay apply (Kartu Izin tinggal Terbatas or KITAS) from the immigration Office closest to their area within 7 days after entering Indonesia. The following procedures also applies to the temporary foreigner workers and expertise, such as: specialized technician for temporary repair work, some experts for short-term job position and any affiliated foreigner for specific work function.
Employers who will employ foreign worker shall have RPTKA. RPTKA is a basis to obtain Foreign Worker Employment Permit (Izin Mempekerjakan Tenaga Kerja Asing or IMTA). In order to receive RPTKA, the employer must apply via online to the Directorate General of Guidance Employment and Broaden Employment Opportunities through the Director of Foreign Manpower Management by enclosing:
According to the Article 42 paragraph (4) and (5) of Law of the Republic of Indonesia No. 13 of 2003 on Employment, foreign labor can only be employed in Indonesia for a certain position and department.
As a follow up to the above regulation, Ministerial Decree of Manpower No.10 of 2018 on Procedures for Licensing Hiring Foreign Workers stipulate. There are certain positions which are prohibited for foreigners
Additionally, the employer or sponsor is prohibited from hiring foreign labor who has already worked in other company with exception if the foreign labor is appointed as Director or Commissioner in other company as stated in its General Meeting of Shareholders or certain sectors such as vocational education and training, digital economic and also oil and gas.
According to the Article 35 of Law of the Republic of Indonesia No. 13 of 2003 about Manpower, employer can recruit a local worker directly or through a worker placement service providers or agency. The employer shall provide protection covering welfare, safety, and physical and mental health of the worker. The agency also shall not be exempted to provide protection for their employees.
There are 2 kinds of working relations between employer and employee:
1. Working relation for unspecified period applied to permanent employee. The working agreement for unspecified period can require a probation period for 3 months at the maximum and the wage received by the employee shall not below the minimum wages.
2. Working relation for specified period. This working relation shall be based on the period of time (maximum 3 years) and the completion of a certain job. Working agreement for specified period cannot require a probation period. It can be applied for a period of 2 years at the maximum and only could be extended maximum once for a year.
Please refer to Law of the Republic of Indonesia No.13 of 2003 for further information.
Yes, it is allowed. Outsourcing, in this regard, is defined as obtaining goods or services by contract from an outside supplier. However, in society perspective, majority of the outsource workers are employed under temporary contract.
Related to this, there will be 2 definitions of outsourcing:
1. If outsourcing is perceived as the recruitment of workers who directly conducted by the employer with the status of working relationships are specified for certain period and unspecified period work agreement, thus this outsourcing definition is associated with the Article 56-59, Law of the Republic of Indonesia No.13 of 2003 and Ministerial Decree of Manpower No.100/MEN/VI/2004. Specified period work agreement is for a particular job that will be completed within a specified time, which included in a category, as follows:
Meanwhile, uncertain time work agreement is for the job that does not meet the certain time work agreement’s categories.
2. If outsourcing is understood as obtaining goods or services by contract from outside parties, then outsourcing in this definition must be in accordance with Ministerial Decree of Manpower No.19 of 2012. Outsourcing is divided into 2 types, which are:
Yes. According to the Article 102 of Act No. 13 of 2003 about Manpower, Labors and Labors Unions shall function to execute jobs in accordance with their obligations, maintain orderliness for continuous production, channel their aspirations democratically, and develop their skill and expertise as well as to take part in promoting companies and ensuring welfare of their members and families.
Every labor shall entitle to establish and become a member of labors unions. The labors union shall entitle to accumulate and manage funds as well as to hold accountability for the funds of organization.
According to the Article 102 of Act No. 13 of 2003 about Manpower, Labors and Labors Unions, the government shall function to stipulate policies provide service, supervise, and take action against any violation of provisions of law in force. The government refers to the Ministry of Manpower of the Republic of Indonesia at the national level, and Department of Manpower at provincial level.
Representative of government includes all member of the tripartite cooperation institutions, altogether with employer organization and labors union. Tripartite cooperation institution provides recommendations, suggestions, and opinions for the government and parties concerned in the formulation of policies and settlement of manpower issues.
In the case of industrial relations dispute, employer and labors union should undertake negotiation at the first place. If negotiation fails, the dispute should be brought to tripartite cooperation institution.
Further information about industrial relations dispute settlement can be referred to Act of the Republic of Indonesia No. 2 of 2004 concerning Industrial Relations Disputes Settlement.
Yes, Labors strikes is regulated by the Minister of Manpower Decree No. 232 of 2003. According to this regulation, strike is defined as labors/workers action which is projected and carried out jointly and/or by worker/labors union to stop or slow down the works. Strike is part the human right of workers/labors that should be conducted legally, orderly and peacefully as the consequence of failed negotiation.
Failed negotiation shall be negotiation that all parties could not reach an agreement in the dispute settlement because the employer is not willing to conduct negotiation or the worker/labors union or the workers/labors have requested in writing the employer 2 (twice) within the period of 14 working days or the negotiation isdeadlocked stated by the parties in the minutes of negotiations.
The strike shall be deemed illegal if it is conducted:
An illegal strike should be considered not happening. Because the employers are required to contact (in written form) the workers for 2 times consecutively within 7 days. The workers/labors who do not respond will be considered to have resigned.
For the case of workers strike legally in raising demand for normative rights which are violated by employer, they shall be entitled to obtain wage.
Termination of employment is regulated in Chapter XII of Law No. 13 of 2003 concerning Manpower. Employment termination occurs because of certain problems that stop the rights and obligations between the workers and the employers.
Employer, labors, labors unions, and the government, by all means, try to avoid employment termination. However, in all efforts made, the employment termination can not be avoided. The employers should negotiate the plans for the employment termination with the labor union individually in the case of the said labor is not a member of the union.
In the case of negotiations, as referred to the paragraph above, it fails to make an agreement. The employers can only terminate the employment relations with the workers/labors after obtaining provisions from the authorities to settle industrial relations disputes.
Application for stipulation of discontinuation of working relations shall be submitted in writing to the institution authorized to settle industrial relations dispute, accompanied by reasons as the basis of the discontinuation.
The institution authorized to settle industrial relations dispute can accept the application for stipulation if it has been negotiated. The institution authorized to settle industrial relations dispute only can issue stipulation of the application for discontinuation of working relations if the plan for discontinuation of working relations has been negotiated by the negotiation failed to result in an agreement.
Employer shall be prohibited from discontinuing working relations with the following reasons:
Application for stipulation of discontinuation of work relations shall be unnecessary, in the case of:
The investors can buy and own land in Indonesia for a certain period of time by using the following rights:
HGU, HGB, and Right of Use can be owned by Indonesian citizens, a foreigner residing in Indonesia, corporate bodies established under Indonesian Law and are based/ having an office in Indonesia, and foreign companies that have a representative office in Indonesia.
The HGU and HGB ownership are allowed to change during the contract period. However, the land usage right can be transferred to other parties with the approval of the relevant government official. The individual land usage right can also change hands.
Yes, it depends on the type of property:
This right can be held by Indonesian individuals or entities as well as the government approved FDI companies and can be pawned.
FDI companies that are property developers can buy land in Indonesia to develop a property. The status of the land is HGB which will be divided into small lots accordingly. Then, the property buyer can submit an application to change the status of the land to Ownership Rights (Hak Milik) which is only allowed for Indonesian citizens.
The basic tax obligation is Income Tax (Pajak Penghasilan or PPh) which is progressive and applied to both individual(s) and enterprises. FDI companies that are located and conduct business activities in Indonesia and foreigners who work and earn income in Indonesia generally must bear the same tax obligations as the resident taxpayers. The self-assessment method is used to calculate income tax.
The Tax Withholding system is used in Indonesia to collect the income tax. If a certain item of income is subject to withholding tax, the payer is responsible for holding or collecting taxes. For example, employers are required to withhold income tax of the salaries paid to their employees and pay the tax to the tax office on their behalf.
Detailed information on Income Tax should refer to The Income Tax Law No. 36 of 2008.
Land & Building Tax (Pajak Bumi dan Bangunan or PBB)
The owners of land & buildings have to pay tax annually on land, buildings and permanent structures. The effective rates are nominal, typically not more than one-tenth of one percent per year (0.1%) of the asset value.
Value Added Tax or VAT
In normal cases, a 10% VAT is applied to imports, manufactured goods, and most services. However, in accordance with the Government Regulation No. 7 of 2007, Free Charge of VAT to the importation of certain VAT charged goods having the strategic term which consist of:
Sales Tax on Luxury Goods (Pajak Penjualan atas Barang Mewah or PPnBM)
This tax ranges from 10% to 75%. The list of the tax should be referred to The Government Regulation No. 12 of 2001 jo. No. 43 of 2002 jo. No. 46 of 2003 and other related tax implementation regulations.
The stamp duties nominal are either IDR 3,000 or IDR 6,000 on certain documents. The rate of IDR 6,000 is applicable for letters of agreement and other letters, such as Notary Deed and Land Deed including its copies. For all documents bearing a sum of money, the rate is IDR 6,000 when the value stated in the document is more than IDR 1 million, and IDR 3,000 when the value is between IDR 500,000 and IDR 1 million. Below IDR 500,000 is not subject to stamp duty. For cheques, the rate is IDR 3,000 regardless of money value stated.
Deemed Withholding Tax
Applicable for Trade Representative Office in Indonesia. Decree of Directorate General of Taxation, KEP-667/PJ./2001, states that deemed withholding tax for Trade Representative Office must be paid at the rate of 0.44% out of 1% gross export value.
This is only applicable to foreign taxpayers who have no double-tax treaty agreement. For more information on the payment details, please refer to Directorate General of Taxation Circular No. SE-2/PJ.03/2008.
Beside tax, local government in the provinces or cities usually apply retribution for some business sectors and it varies from region to region.
Yes, foreigners who will travel to Indonesia should apply for a visa from the Indonesian Embassy in their respective countries unless they come from one of the visa-exempt countries or the countries that qualify for Visa on Arrival or VoA (Visa Kunjungan Saat Kedatangan).
All visitors must hold a passport valid for 6 months from the date of arrival and have valid return ticket. The immigration entrance officer at the airport/seaport may ask the passenger to show any necessary documents (such as hotel reservation and other financial evidence).
Regarding the purpose of the visit, ASEAN Countries Nationality Visitors are able to visit Indonesia without any visa for the purpose of official duties, education, tourism, business, government, and social culture purpose. They may stay up to 30 days without renewal or convert to other types of visas.
Presidential Regulation Number 21 of 2016 regarding Visa-Free Visit. This latest regulation replaces its previous preceding the Presidential Regulation Number 104 of 2015 on Amendment of Presidential Decree Number 69 of 2015.
As per this regulation, 169 recipient countries that are free of visit visas are given a stay permit for 30 days and cannot be extended.
The countries are:
Albania; Algeria; Andorra; Angola; Antigua and Barbuda; Argentina; Armenia; Australia; Austria; Azerbaijan; Bahamas; Bahrain; Bangladesh; Barbados; Belarus; Belgium; Belize; Benin; Bhutan; Bolivia; Bosnia and Herzegovina; Botswana; Brazil; Brunei; Bulgaria; Burkina Faso; Burundi; Cambodia; Canada; Cape Verde; Chad; Chile; China; Comoros; Costa Rica; Cote d’Ivoire; Croatia; Cuba; Cyprus; Czech Republic; Denmark; Djibouti; Dominican Republic; Ecuador; Egypt; El Salvador; Estonia; Fiji; Finland; France; Gabon; Gambia; Georgia; Germany; Ghana; Greece; Grenada; Guatemala; Guyana; Haiti; Holy See; Honduras; Hong Kong; Hungary; Iceland; India; Ireland; Italy; Jamaica; Japan; Jordan; Kazakhstan; Kenya; Kiribati; Kuwait; Kyrgyzstan; Laos; Latvia; Lebanon; Lesotho; Liechtenstein; Lithuania; Luxembourg; Macau; Macedonia; Madagascar; Malawi; Malaysia; Maldives; Mali; Malta; Marshall Islands; Mauritania; Mauritius; Mexico; Moldova; Monaco; Mongolia; Morocco; Mozambique; Myanmar; Namibia; Nauru; Nepal; Netherlands; New Zealand; Nicaragua; Norway; Oman; Palau; Palestine; Panama; Papua New Guinea; Paraguay; Peru; Philippines; Poland; Portugal; Qatar; Romania; Russia; Rwanda; Saint Kitts and Nevis; Saint Lucia; Saint Vincent and the Grenadines; Samoa; San Marino; Sao Tome and Principe; Saudi Arabia; Senegal; Serbia; Seychelles; Singapore; Slovakia; Slovenia; Solomon Islands; South Africa; South Korea; Spain; Sri Lanka; Suriname; Swaziland; Sweden; Switzerland; Taiwan; Tajikistan; Tanzania; Thailand; Timor-Leste; Togo; Tonga; Trinidad and Tobago; Tunisia; Turkey; Turkmenistan; Tuvalu; Uganda; Ukraine; United Arab Emirates; United Kingdom; United States of America; Uruguay; Uzbekistan; Vanuatu; Venezuela; Vietnam; Yemen; Zambia; Zimbabwe.
Passport holders from 15 countries and territories can visit Indonesia for the purpose of tourism, business, education, government-related tasks, socio-culture, journalism, or transit. These 15 countries can enter and exit Indonesia through any airport or harbor. Meanwhile, nationals from 75 countries and territories can visit Indonesia for the purpose of tourism only and can only enter and exit Indonesia through certain airports and harbors These 75 countries can obtain Visa-Free Visit at certain airports and harbors.
Nationals from the following 4 countries may apply for a VoA for 30 days length of stay by paying a certain amount of money. The rate is the same for any passenger of any age, including infants. The Indonesia VoA can be extended once for 30 days:
Nationals who are not eligible for Visa Free Visits or VoA should apply for a visa at the Indonesian embassy or consulate.
Nationals from 10 following countries require approval from Immigration Office in Indonesia before travelling for business, tourist and social visits purposes:
All the applicants for any types of visa must comply with the general requirements below:
In regards to visa application fees, the currency fluctuation visa fees are adjusted accordingly to each country’s currency. For this reason, each visa applicant is advised to contact directly to the Indonesian Embassy or Consulate General located in the respective country. In the case where the Indonesian Government representative is not available at the applicant resident city or area, please contact the Ministry of Foreign Affairs of the Republic of Indonesia at the following website, www.kemlu.go.id.
The applicant can apply online by visiting website www.imigrasi.go.id and click Visa Section or come directly to Directorate of Immigration. Foreigners intending to work and stay in Indonesia must get Limited Stay Visa (VITAS).
To get VITAS, applicants must have a sponsor both from their home country and in Indonesia.
The application should be submitted by the sponsor in Indonesia to the Directorate General of Immigration in Jakarta.
Once the application is approved, Directorate General of Immigration in Jakarta will give the approval letter to the sponsor or counterpart in Indonesia and to the Indonesian Embassy where the visa will be collected.
The embassy will issue the VITAS only after receiving approval from the Directorate General of Immigration in Jakarta. Once the foreigners enter Indonesia by using VITAS, they should apply for a Limited Stay Permit Card (KITAS) from the local immigration office.
Application of working permit will be explained further in the Chapter of ‘Labors Law’.
Yes, you can bring your family to Indonesia. They should get a Limited Stay Visa (VITAS) and Limited Stay Permit Card (KITAS) by following the same procedures mentioned above.
Yes, there is a visa facilitation scheme applicable for the investor in the Special Economic Zone or SEZ (Kawasan Ekonomi Khusus or KEK). Currently, Head of One Stop Service (Kepala Pelayanan Terpadu Satu Pintu or PTSP), which has been designated by the Director General of Immigration to implement the licensing authority in the provision of facilities for licenses and investment to investors who are in a SEZ which cover certain areas in Batam, Bintan and Karimun in Riau Islands Province.
Immigration officials can grant approval of Limited Stay Visa (VITAS) to foreigners who live in the SEZ for people coming as:
Officials at the Overseas Indonesian Representative can grant a Limited Stay Visa (VITAS) for 2 years for investors after receiving approval from the immigration officer at PTSP in SEZ.
In the framework of assessment or business development in the SEZ, Authorized Overseas Indonesian Representatives are allowed to provide a Multiple-Trip Visa which is applicable for 1 year for foreigners with a period of stay of 60 days.
In regards to the provision of short-term work for the development of SEZs, foreigners with access to Visa-Free Temporary Visit (Bebas Visa Kunjungan Singkat or BVKS) can be given VoA for a period of 7 days.
Limited Stay Visa (VITAS) Requirements (for SEZ area):
Multiple Visit Visa Requirements (for SEZ area):
There are 2 ways to export product to Indonesia:
1. Appointing local company in Indonesia as your agent or distributor. A local distributor company will fulfill all the requirements to import your products. If the products are related to food and drugs, it should be registered to the National Agency of Drug and Food Control (BPOM) (www.pom.go.id). However, the ownership right of product registration can only be obtained by the local distribution company. Therefore, there might be a risk such as the ownership right of product registration may cause conflicting issues on the possession of the rightful owner of the market trademark.
2. Establishing your own company as the Trading (import/export/distributor) Company. Through this scheme, your company can apply the ownership right of your own products. If your trading company is just importing, your company is not allowed to distribute the products hence you still have to appoint a local distributor or agent company.
In both ways, the company should obtain Single Business Number (NIB) via the OSS website, www.oss.go.id.
There are restrictions and limitations to export and import some specified products and commodities. Please refer to the website of Indonesia National Single Window or INSW as follows, http://eservice.insw.go.id.
Visit the INSW website as mentioned in the previous question.
In a general and simplified explanation, the steps of customs clearances for imported products are as follows:
Once the custom is cleared, the importer will be issued Customs Clearance Approval Certificate (Surat Perintah Pengeluaran Barang or SPPB).
The importer will be able to release the goods from custom by enclosing:
Indonesian Import-Export Prohibition and Restriction Regulations (Larangan dan/atau Pembatasan Ekspor-Impor or LARTAS) maintain the full details of products restricted from import and export activities. LARTAS information can be found on the INSW website, www.insw.go.id.
All food and drug products such as a drug, traditional medicine, cosmetics, food supplement, and processed food, must fulfill all safety requirements to enter the Indonesian market. This imported food and drug registration is regulated under Indonesian National Agency of Drug and Food Control (BPOM), one of the provisions in the Regulation of the Head of the Agency of Drug and Food Control Republic of Indonesia No. 12 of 2015 concerning the Oversight of Food and Drug Imports into Indonesian Territory.
The registration must be done by the local company, local agent, or distributor before the products cleared to Indonesian customs. To import drug and food, the importer must apply Letter of Import (Surat Keterangan Impor or SKI) to the Head of BPOM.
The procedure to obtain SKI are as follows:
Indonesia is the fourth most populous country in the world with young work force and a large and growing domestic market due to the demographic bonus, making Indonesia one of the world’s leading economies.
Despite heightened global uncertainty, Indonesia’s economic outlook continues to be positive, with domestic demand being the main driver of growth. Supported by robust investment, stable inflation, and a strong job market, Indonesia’s economic growth is forecast to reach 5.2% in 2020.
As the only G-20 member in Southeast Asia and an active voice to develop world concerns, Indonesia plays a more significant role in the global stage. Standard Chartered foresees Indonesia’s entry into the G-7 by 2030, and projects that the Indonesian economy could become the 10th largest by 2020 and the 5th largest by 2030.
Being the world’s 3rd largest flourishing democracy with the largest Muslim populations, Indonesia has a stable policy situation with high commitment to implement structural reforms. Worldwide Governance Indicators Survey conducted by World Bank indicated that Indonesia has improvements in several indicators such as Government Effectiveness, Regulatory Quality, and Control of Corruption.
Indonesia has progressed in Ease of Doing Business over the past few years, with rank of 73 among 190 economies in ease of doing business 2019. In addition to that, Indonesia has leaped to the fourth place, from previously on the eight place, as a prospective investment destination 2017-2019 based on the survey of the United Nations Conference on Trade and Development (UNCTAD).
Indonesia has abundant of natural resources. It also has the second highest biodiversity level in the world after Brazil. Aside from the flora and fauna, Indonesia is a home to many ecosystems. From beaches, small islands, coral reefs, seaweed beds, sand dunes, tidal flats, coastal mud, mangroves and others make Indonesia the most attractive place for investment especially in the tourism sector.
The challenges with Indonesian infrastructure have a lot to do with the geographical realities in the country, as a vast archipelago. The fiscal budget allocated for infrastructure increased more than doubled in the last five years and private sector’s contribution is strongly encouraged and facilitated.
The Government has issued several policies, including the provision of government guarantees, land acquisition for development projects, and viability gap fund for part of Public-Private Partnerships or PPP (Kemitraan Pemerintah dan Badan Usaha or KPBU) project’s construction cost. In addition, the government established some financial institutions to help finance PPP projects and increase their bankability.