Secure Your Residency and Business Control in Indonesia with the 2026 Investor KITAS (Index E28A)

If you are a shareholder, business founder, or investor who intends to manage a company directly in Indonesia, then certainty of residency status and the legality of your managerial role are two elements that must be secured from the very beginning, before you inject capital, assume a formal position, or begin day-to-day operational activities.

In 2026, the Investor KITAS (Index E28A) is no longer treated merely as a stay permit for shareholders. It is now positioned as a policy filter designed to distinguish investors who hold substantial equity commitments and actively exercise managerial and strategic responsibilities within the company.

As a result, eligibility is assessed through cross-verification between the shareholding structure in the company deed, data in the Online Single Submission Risk-Based Approach (OSS RBA) system, and the integrated digital immigration system.

XPND helps ensure that your corporate structure, shareholding value, and administrative compliance framework are positioned in a way that is defensible under Indonesian regulations and prepared for verification across multiple authorities.

Our approach does not stop at “visa processing”. We help you build a residency foundation that can withstand scrutiny, so you can live, lead, and operate your business in Indonesia with full clarity and confidence over your legal standing.

Understanding the Difference Between IDR 2.5 Billion and IDR 10 Billion, and Its Impact on Investor KITAS Eligibility

Many foreign investors assume that once they establish a foreign investment company (Perseroan Terbatas Penanaman Modal Asing / PT PMA) with paid-up capital of IDR 2.5 billion (in line with BKPM Regulation No. 5/2025), they automatically qualify to apply for an investor KITAS.

Note: Under BKPM Regulation 5/2025, this declared paid-up capital is subject to a 12-month lock-up period and cannot be withdrawn immediately unless it is genuinely deployed for business operations.

This is where misunderstandings frequently arise.

At the corporate level, paid-up capital of IDR 2.5 billion is indeed sufficient to legally incorporate a company. However, to obtain an Investor KITAS (Index E28A), the immigration authority applies a different eligibility standard, because this permit is intended for investors who are assessed as having a significantly larger capital commitment to their company.

To be eligible for an investor KITAS, a shareholder is required to hold:

A minimum personal shareholding value of IDR 10 billion, recorded in the company deed and visible within the immigration verification system.

In practice, this often leads to two common situations:

• the company is fully compliant and valid from a corporate law perspective,
• but the shareholder does not yet meet the threshold required for an investor KITAS.

Many clients only discover this gap once their process is already underway.

For this reason, XPND starts its engagement from the assessment stage, reviewing both the shareholding structure and residency objectives. The goal is to ensure that decisions taken at the incorporation and capitalisation stage do not create obstacles later during the immigration validation process.

Capital Below IDR 10 Billion? There Is Still a Lawful Path You Can Take

If your personal shareholding value is still below IDR 10 billion, it does not automatically mean you cannot live and work in Indonesia. Under the current regulatory framework, there is a compliant alternative route:

Working KITAS (Index E23) 

Under the Working KITAS (Izin Tinggal Terbatas Kerja) scheme, your own company sponsors you in the same way it sponsors a foreign professional. This route allows you to:

• Hold the position of Director or other managerial roles
• Perform day-to-day work functions
• Receive salary and benefits legally
• Manage operational activities as an expatriate professional

The consequence is that the company is required to pay the Foreign Worker Compensation Fund (Dana Kompensasi Penggunaan Tenaga Kerja Asing / DKP-TKA) amounting to USD 100 per month (USD 1,200 per year).

This is a fully lawful and recognized route, particularly suitable for:

• Early-stage startup founders
• Businesses with mid-level capitalisation
• Investors who are not yet ready to lock in personal share capital of IDR 10 billion

XPND’s principle is straightforward, regardless of your current capital capacity, there is always a residency and work authorization pathway that can be structured in full compliance with prevailing regulations.

Key Advantages of the 2026 Investor KITAS (Index E28A)

For clients who meet the IDR 10 billion shareholding threshold, the investor KITAS scheme offers several advantages that are more efficient financially and operationally when compared to a standard work permit route.

Longer Validity

An investor KITAS can generally be issued with a validity period of one to two years.

This flexibility helps reduce the frequency of renewals and makes the overall administrative process more efficient in terms of both time and cost, particularly for investors with medium- to long-term business assignments in Indonesia.

Exemption from DKP-TKA

Holders of an investor KITAS who meet the IDR 10 billion shareholding threshold are exempt from the obligation to pay the Foreign Worker Compensation Fund (Dana Kompensasi Penggunaan Tenaga Kerja Asing / DKP-TKA) of USD 1,200 per year.

For companies with a long-term business horizon, this exemption becomes a meaningful financial advantage when compared with the standard Working KITAS scheme.

Unlock the Territorial Tax Exemption: As an Investor KITAS holder, you may be eligible to pay tax only on Indonesia-sourced income for the first four years, providing legal protection for your foreign passive income and offshore wealth structure during the initial 4 year residency period.

Right to Actively Manage the Company

With an investor KITAS, you can:

• Serve as Director or Commissioner
• Lead operations and business strategy
• Sign contracts and make key decisions

without having to apply for a separate work permit (Izin Mempekerjakan Tenaga Kerja Asing / IMTA or Notifikasi).

This scheme is particularly suitable for:

• Owner-operators
• Founders who are directly involved in day-to-day operations
• Strategic investors who participate in critical decision-making

Post-Approval Compliance for Investor KITAS Holders

Many investors assume that the process is complete once the investor KITAS is issued. In reality, by 2026, civil registration requirements have become an integral part of the compliance standard.

One of the key documents is the Temporary Residence Certificate (Surat Keterangan Tempat Tinggal / SKTT).

The SKTT functions as a “temporary ID card” for KITAS holders. This document must be submitted to the Population and Civil Registry Office (Dinas Kependudukan dan Pencatatan Sipil / Dinas Dukcapil) no later than 14 days after the KITAS is issued.

The process can now be handled via regional digital platforms such as:

• Silaporlagi (DKI Jakarta)
• Taring Dukcapil (Denpasar)
• and similar local systems in other regions

Without an SKTT, an investor may experience:

• Difficulty opening local bank accounts
• Obstacles when purchasing certain assets
• Issues at the time of KITAS renewal
• Administrative fines in the event of delays

XPND includes SKTT processing and related civil-digital obligations as part of its assistance package, so you do not merely “hold a visa”, but are fully integrated into Indonesia’s administrative ecosystem.

Investor KITAS or Golden Visa: Which Is More Appropriate for You?

Not all investors act as business operators.

Some only require long-term residency without holding a managerial function. To support better decision-making, the following is a simplified comparison:

Criteria	Investor KITAS (Index E28A)	Golden Visa (E28B/E28C)
Investor profile	Active business owners / directors	– Company founders / high-net-worth individuals (HNWI) (E28B) – Passive portfolio investors (E28C)
Capital base	Personal shareholding > IDR 10 billion in a PT PMA	– Investment of USD 2.5 million (E28B) – Portfolio investment of USD 350,000 (E28C)
Validity period	1-2 years, renewable	5-10 years
Right to work	Yes, in a Director/Commissioner role	No, residency only
DKP-TKA	Exempt, if the shareholding threshold is met	– Exempt (E28B) – Not applicable (E28C)

If your primary objective is to:

• lead the company,
• be actively involved in operations,
• and hold a formal structural and managerial position,

then the investor KITAS will generally be the most relevant option.

However, if your main goal is to obtain long-term residency without building or managing a company in Indonesia, a Golden Visa may be a simpler and more cost-efficient choice from an operational perspective.

Why Work with XPND for Your Investor KITAS Strategy?

In 2026, the systems for:

• Business licensing (Online Single Submission / OSS),
• Legal entity administration (General Legal Administration / Administrasi Hukum Umum – AHU),
• Immigration,
• Taxation, and
• Civil registration (Population and Civil Registry / Administrasi Kependudukan)

no longer function in isolation. Data across these systems is cross-checked and evaluated for consistency.

Because of this, obtaining an investor KITAS can no longer be approached as a purely administrative exercise.

XPND does not stop at submitting documents to immigration. We position ourselves as a strategic compliance partner, ensuring that:

• your shareholding structure and Standard Industrial Classification are aligned with investor KITAS requirements,
• data in the company deed, OSS system, and visa application are consistent,
• your residency pathway is aligned with your tax residency and income structure,
• civil obligations such as SKTT are not overlooked.

Regulatory gaps in 2026 can be costly. Do not risk a rejected visa application due to mismatched capital structures or permit categories. Schedule your Investor KITAS eligibility assessment with XPND to ensure your corporate, immigration, and residency frameworks are fully aligned.