“ITAP is an immigration permit for foreigners to stay permanently in Indonesia and it is formalised by an immigration stamp in the holder’s passport. After the ITAP has been granted, the immigration office will issue a Permanent Stay Permit Card (KITAP). The KITAP is valid for five years with two years multiple re-entry permits and it can be extended.”
Procedural differences between obtaining a KITAP for investors, expatriates working as director or commissioner, and spouses of mixed marriages in Indonesia.
The Indonesian government is currently encouraging foreign investments in Indonesia to support the country’s development. The government has issued two new regulations, Presidential Regulation No. 20 of 2018 (Perpres 20/2018) on Foreign Workers and the Chairman of BKPM Regulation No. 13 of 2017 on Guidelines and Procedures for Licensing and Investment Facilities (BKPM 13/2017).
Significant in both new regulations is how the government wants to simplify the process of recruiting foreign workers in Indonesia and clarify the filing of KITAP (Permanent Stay Permit Card) for foreign investors.
First of all, what is a Permanent Stay Permit (Izin Tinggal Tetap/ITAP)? As can be seen from its name, ITAP is an immigration permit for foreigners to stay permanently in Indonesia and it is formalised by an immigration stamp in the holder’s passport. After the ITAP has been granted, the immigration office will issue a Permanent Stay Permit Card (KITAP). The KITAP is valid for five years with two years multiple re-entry permits and it can be extended.
Law No. 6 of 2011 on immigration has regulated individuals who are eligible to obtain the KITAP. As stated in Article 54 of the law, a Permanent Residence Permit Card (KITAP) might be given to:
- A foreign national who holds a Temporary Residence Permit as a religious cleric/missionary, expatriate worker, investor, or retiree;
- A member of a mixed marriage family;
- The husband, wife, and/or child of a foreign national who holds a Permanent Residence Permit; and;
- A foreign national who is a former Indonesian citizen or holds dual citizenship of the Republic of Indonesia and another country.
However, the government regulates KITAP more specifically in Perpres No. 20/2018 and BKPM 13/2017. For more details, we will explain the differences between the KITAP for Investor, KITAP for Foreign Worker, and the KITAP for the spouse of an Indonesian citizen in Indonesia (will be in Part Two):
- KITAP for Investors
According to Article 10 Paragraph 1 Letter a, Perpres No. 20/2018, a company that wants to hire a foreign worker does not need an RPTKA if the foreign worker is a shareholder and holding a position as director or commissioner of that organisation. The provision is in line with Article 90 Letter d, BKPM 13/2017, which states that BKPM provides a recommendation to convert the status of a Visiting Stay Permit (Izin Tinggal Kunjungan) into Limited Stay Permit Card (KITAS /Kartu Izin Tinggal Terbatas) and Article 90 Letter e, BKPM 13/2017, which states that BPKM provides a recommendation to convert the status of KITAS into a KITAP for investors.
The recommendation to convert the status of KITAS into KITAP will be given to individuals who meet these requirements:
- An investor, and he or she holds a position as a director or commissioner with a provision of ownership of at least Rp1 billion or equivalent to United States dollars; or
- An investor, and he or she does not hold a position as a Director or Commissioner with a provision of ownership of at least Rp10 billion or equivalent to United States dollars;
Furthermore, here are the requirements and procedures for submitting a recommendation to transfer KITAS status to KITAP at BKPM:
- The original form of the application signed by the management of the company (the guarantor) or its attorney with the stamp and seal of the company;
- Original Letter of Attorney, if the application is not made directly by the management of the company. A company employee of the company can be authorised and show a company ID.
- Identity Recording Company Leader Guarantor:
- Foreigner: Passport and / or IMTA
- Indonesian Citizen: KTP and NPWP
- KITAS records for the last three years, NPWP and passport of the foreigners who will transfer their status.
- KITAP for Foreign Worker
Similar to the KITAP for investors, the foreign worker applying for a KITAP must apply for a KITAS as a director or commissioner first. After obtaining the KITAS for three consecutive years, the applicant will then be qualified for the KITAP. For KITAP applications, foreign workers and sponsor companies need to prepare the following documents:
- Passport with a minimum validity of 18 months;
- Expatriate Working Permit Card (Izin Mempekerjakan Tenaga Kerja Asing/IMTA);
- KITAS, IMTA, SKTT for the previous three years;
- Deed and Ministerial Approval of the sponsor company;
- Taxpayer Identification Number (Nomor Pokok Wajib Pajak/NPWP) of the sponsor company;
- NPWP and KTP of an Indonesian with highest position in the company;
- Company Registration Certificate;
- Business License with a minimum of Rp1 billion as paid-up capital;
- Mandatory Manpower Report (Wajib Lapor Ketenagakerjaan / WLK);
- Expatriate Worker Utilisation Plan (Rencana Penggunaan Tenaga Kerja Asing/RPTKA);
- DPKK (Mandatory Skill Development Fund) funds payment proof (annually US$1,200);
- Domicile Letter of the foreigner’s address in Indonesia.
To be continue to An Update Of KITAP (Permanent Stay Permit) In Indonesia Part II
How Can Elson Help You?
ELSON Indonesia is a company that focus on providing comprehensive legal solution for expatriates, foreigner, and mixed marriage couple in Indonesia.