Investor KITAS in Indonesia: Residency That Reflects Your Actual Role in the Company

The Investor Temporary Stay Permit (Kartu Izin Tinggal Terbatas or KITAS) index E28A is issued to foreign shareholders who hold a minimum personal shareholding of IDR 10 billion in a PT PMA and actively manage the company as Director or Commissioner. XPND ensures your corporate structure and shareholding position are correctly aligned before the application is submitted.

Is This Your Situation?

Foreign investors who come to XPND about Investor KITAS usually arrive at one of two points in their journey.

The first group has already decided to invest in Indonesia and wants to understand how residency works alongside company establishment. They know they want to be present in the country to manage their business directly, but are not certain whether their planned capital structure qualifies them for an Investor KITAS, or whether a different route is more appropriate.

The second group has already incorporated a PT PMA (Perseroan Terbatas Penanaman Modal Asing) with paid-up capital of IDR 2.5 billion, the minimum under Investment Coordinating Board (Badan Koordinasi Penanaman Modal or BKPM) Regulation No. 5 of 2025, and assumed this automatically qualifies them for an Investor KITAS. It does not, and discovering this gap after the company is already set up creates a structural problem that needs to be resolved before residency can be secured.

The third situation that recurs is an investor who is already in Indonesia on a Working KITAS or tourist-converted visa, managing their own company, and now wants to transition to an Investor KITAS to eliminate the annual Foreign Worker Compensation Fund (Dana Kompensasi Penggunaan Tenaga Kerja Asing or DKP TKA) obligation of USD 1,200 per year and reduce the frequency of permit renewals.

All three situations have a clear path forward. The starting point is understanding where the shareholding structure sits and what adjustments, if any, are needed before the application proceeds.

Not sure which situation applies to you? Walk us through your setup and we will give you a clear answer.

The IDR 2.5 Billion and IDR 10 Billion Distinction That Most Investors Miss

Since BKPM Regulation No. 5 of 2025 reduced the minimum paid-up capital for a PT PMA to IDR 2.5 billion, many foreign investors have assumed that establishing a company at this threshold automatically qualifies them for Investor KITAS eligibility. This assumption is incorrect and it is the single most common structural error XPND encounters at the application stage.

The IDR 2.5 billion figure is the minimum paid-up capital required to legally incorporate a PT PMA. It is a corporate law threshold, not an immigration threshold.

The Investor KITAS is governed separately under Minister of Law and Human Rights (Peraturan Menteri Hukum dan Hak Asasi Manusia or Permenkumham) Regulation No. 22 of 2023 on Visas and Residence Permits, as amended by Permenkumham No. 11 of 2024 and partially revised by Permenkumham No. 3 of 2025. Under this framework, a foreign national applying for an Investor KITAS or KITAS index E28A is required to hold a minimum personal shareholding of IDR 10 billion, registered directly under their personal name in the company deed and verifiable through the immigration system.

This personal shareholding cannot be represented through a nominee arrangement, a corporate holding entity, or a third party. It must be direct, traceable, and supported by a notarized shareholder register reflecting the individual applicant’s equity position.

The practical consequence is that a company fully compliant with corporate law at IDR 2.5 billion paid-up capital may have a shareholder who does not yet meet the IDR 10 billion threshold required for Investor KITAS. Identifying and addressing this gap at the incorporation and capitalization stage is significantly more efficient than attempting to restructure shareholding after the company is already operational.

What the Investor KITAS Provides

For investors who meet the IDR 10 billion personal shareholding threshold, the Investor KITAS index E28A provides a set of practical advantages that the Working KITAS does not.

Residency validity of one to two years

The Investor KITAS can be issued with a validity period of either one or two years, with the two-year option reducing administrative renewal frequency and the associated cost and time of annual processing. The permit can be renewed up to a maximum cumulative stay under KITAS before transitioning to an Investor KITAP (Kartu Izin Tinggal Tetap), which requires a minimum personal shareholding of IDR 15 billion under the current framework.

Exemption from DKP TKA

Investor KITAS holders are exempt from the Foreign Worker Compensation Fund obligation of USD 1,200 per year. For investors on a Working KITAS managing their own company, this exemption represents a direct and recurring cost saving that compounds over the life of the investment.

Right to manage without a separate work permit

An Investor KITAS holder who serves as Director may conduct day-to-day management activities, sign contracts, lead operations, and make business decisions without obtaining a separate Work Permit (Izin Mempekerjakan Tenaga Kerja Asing or IMTA). This applies specifically to the investor’s managerial role within their own company. A Commissioner role under an Investor KITAS does not carry the same work authorization and is limited to supervisory functions.

Multiple entry and re-entry

The Investor KITAS allows unrestricted entry and exit during its validity period. The holder must obtain a Multiple Exit Re-entry Permit or MERP (Izin Masuk Kembali) to maintain this flexibility, which is processed alongside the KITAS.

Territorial tax position for the initial residency period

During the first four years of residency in Indonesia, an Investor KITAS holder may be eligible to pay income tax only on Indonesia-sourced income rather than on worldwide income. This has implications for the investor’s offshore asset and income structure and should be assessed against their specific tax residency position before the permit is obtained.

If Your Shareholding Is Below IDR 10 Billion

Not meeting the IDR 10 billion personal shareholding threshold does not mean an investor cannot reside and work in Indonesia. It means the Investor KITAS index E28A is not the right route at this stage.

The available alternative is a Working KITAS or KITAS index E23, where the investor’s own PT PMA sponsors them as a foreign worker in the capacity of Director or other managerial position. This route is fully lawful and is commonly used by early-stage founders, startup investors, and operators who are not yet ready to commit IDR 10 billion in personal equity.

The trade-off is that a Working KITAS requires the company to pay DKP TKA of USD 1,200 per year, and the permit is processed under the work permit framework, which includes an Expatriate Manpower Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing or RPTKA) submission.

XPND structures both routes correctly depending on the investor’s current shareholding position, business stage, and residency timeline. The right entry point is a clear assessment of where the shareholding sits before any application is prepared.

Want to know which route fits your current structure? Get a straightforward assessment from XPND.

Investor KITAS vs Golden Visa: Understanding the Difference

Some investors arrive with questions about the Golden Visa as an alternative. The two structures serve different profiles and are not interchangeable.

The Investor KITAS index E28A is designed for active business operators: foreign shareholders who hold equity in a PT PMA and are directly involved in managing the company as Director or Commissioner. The residency is tied to the shareholding and the business activity. It requires ongoing corporate compliance including Investment Activity Report (Laporan Kegiatan Penanaman Modal or LKPM) filing and NIB maintenance by the sponsoring company.

The Golden Visa index E28B is designed for company founders and high-net-worth individuals who establish or invest in an Indonesian company at a minimum threshold of USD 2.5 million. The Golden Visa index E28C is for passive portfolio investors. Both Golden Visa categories are administered by the Directorate General of Immigration and are not tied to active day-to-day management of a PT PMA.

The practical distinction is this: if you are an investor who plans to be in Indonesia regularly, managing your company directly, an Investor KITAS is the appropriate structure. If you are a high-net-worth individual seeking long-term residency without operational management obligations, the Golden Visa is the more appropriate route.

XPND advises on both structures. The correct recommendation depends on the investor’s actual role, capital commitment, and residency intentions.

Post-Approval Compliance for Investor KITAS Holders

Obtaining the Investor KITAS is not the final step. There are administrative obligations that must be completed within defined deadlines after the permit is issued.

Temporary Residence Certificate (Surat Keterangan Tempat Tinggal or SKTT) must be submitted to the Regional Population and Civil Registry Office (Dinas Kependudukan dan Pencatatan Sipil or Dinas Dukcapil) no later than 14 days after the KITAS is issued. 

In Jakarta this is processed through the Silaporlagi platform, in Bali through Taring Dukcapil, and through equivalent regional systems in other cities. Failure to obtain an SKTT creates downstream complications including difficulty opening local bank accounts, obstacles when purchasing certain assets, and potential administrative fines.

Police Registration Certificate (Surat Tanda Melapor or STM) must be obtained from the local police after the KITAS is issued.

Company LKPM reporting must be maintained by the sponsoring PT PMA. Under BKPM Regulation No. 5 of 2025, LKPM reports are submitted quarterly for medium and large enterprises. A lapse in LKPM filing affects the company’s compliance profile in OSS and can create complications for KITAS renewal and extension.

XPND includes SKTT processing and post-approval compliance management as part of the Investor KITAS service so that all obligations are met within their deadlines without the investor needing to track multiple government systems independently.

How XPND Processes the Investor KITAS

Shareholding structure assessment. Before any application is prepared, XPND reviews the investor’s current shareholding position against the IDR 10 billion personal threshold and the company’s corporate structure to identify whether the investor qualifies for an Investor KITAS or whether a Working KITAS is the appropriate interim route.

Company compliance verification. The sponsoring PT PMA must hold a valid NIB, have active business licenses, and be current on LKPM reporting before the immigration authority will process an Investor KITAS application. XPND verifies and resolves any compliance gaps in the company’s OSS profile before the application is submitted.

BKPM recommendation and immigration filing. The Investor KITAS application requires a recommendation from BKPM through the OSS system before the immigration authority processes the Limited Stay Visa (Visa Tinggal Terbatas or VITAS) and subsequent KITAS conversion. XPND manages both the BKPM recommendation and the full immigration filing sequence, whether the application is processed offshore from the investor’s home country or onshore from within Indonesia.

SKTT, STM, and post-approval documentation. After the KITAS is issued, XPND manages the SKTT registration, STM application, and MERP processing so that all post-approval obligations are completed within their statutory deadlines.

Ready to start the process or check your eligibility first? Talk to our immigration team.

Why Investor KITAS

For a foreign investor who is present in Indonesia to manage their own company, the Investor KITAS is the most appropriate residency structure available. It provides legal clarity about the investor’s role and presence, eliminates the ongoing cost of the DKP TKA obligation, and removes the procedural overhead of work permit processing for management activities conducted within the investor’s own company.

The structure works best when the corporate foundation is correctly set up from the beginning. A company whose shareholding, paid-up capital, and OSS data are consistent and accurately reflect the investor’s equity position will process the Investor KITAS without friction. A company with structural inconsistencies will encounter delays at precisely the moment the investor is trying to establish their presence in Indonesia.