If you want to stay in Bali for a longer term, you need a temporary residence permit, also known as a KITAS. There are three most common types of KITAS in Indonesia:
- KITAS sponsored by an Indonesian spouse
- Retirement KITAS for people who are 55 or older
- KITAS sponsored by an Indonesian entity
But, how to live in Bali if you don’t have a company, a job, or a local spouse? In this article, we are going to explain how using an employer of record service allows you to stay in Bali legally and without the need for doing any visa runs.
What is an employer of record?
An employer of record (EOR) by definition is a service provider that hires employees that will be on their payroll but work for other companies. With this service, you can employ people in other countries without needing to establish a legal entity there.
However, the EOR service is also a great alternative if you are an expat who wants to live in Bali but who does not have a company, a job, or local spouse that could allow you obtain a residency permit.
How to live in Bali using an employer of record service?
Getting a KITAS through our employer of record service in Bali is simple. All you need to do is provide us with documents required for a KITAS in Indonesia, and we will take care of the rest on your behalf.
Here are the documents you need to send us if you want to obtain a KITAS using our employer of record service in Bali:
- Your CV
- Copy of your education certificate in English (at least a bachelor’s degree)
- A formal photo with a red background
- Copy of your health or life insurance policy (can be from any country)
- Latest bank statement showing your name and balance equal to at least USD 1,500
- Address in Bali and copy of the lease agreement if staying in a house
- Color scan of all pages of your passport with a minimum validity of 20 months
- Reference letter from your previous company showing at least five years of experience
- Name of the Indonesian Embassy where we send the limited stay approval (telex)
- Monthly salary and other essential terms of the employment contract
In general, the issuance of a limited stay approval (telex) takes up to three months. After that, you have two months to collect the telex from your chosen Indonesian Embassy abroad.
The length of validity of a KITAS can be from 1 month to 12 months, depending on your needs. KITASes valid for less than 12 months are non-extendable.
Working in Bali
Together with a KITAS via an EOR, it is also possible to receive a notification from the Ministry of Manpower that will allow you to work in Indonesia.
Based on the new work permit regulation in Indonesia (No. 20/2018 on the use of foreign workers), effective since July 2018, this notification from the Ministry of Manpower replaces the previous work permit (IMTA) that allowed you to work in Indonesia previously.
However, keep in mind that a lot depends on the type of your work, and you cannot hold every position in Indonesia.
If you have questions regarding any of the requirements or about living and working in Bali, feel free to send them directly to our Bali office via [email protected]. Our experienced consultants will assist you gladly in finding the best solution for you.
Four main benefits of using an EOR in Bali
While using an employer of record service in emerging markets provides several advantages for larger corporations, it also makes the life easier if you are an expatriate who does not plan to make any significant investments in Indonesia.
Here are some of the main benefits of using our employer of record service in Bali.
#1 Obtain a residence permit in Indonesia
As we already mentioned, if you want to stay in Bali longer, you need a temporary residence permit KITAS, and it requires either an individual or a corporate sponsor.
An EOR, however, gives you that residence permit without needing a job, a company, nor a spouse. Furthermore, you don’t have to worry about dealing with any paperwork or doing costly visa runs while constantly explaining the purpose of your stay to the immigration officials either.
Having an EOR gives you the gateway and resources to get everything handled for a KITAS. Moreover, depending on your business and the position in the KITAS, it can help you provide your services or earn income in Indonesia legally.
#2 It is cost-efficient
An alternative to having an individual sponsor is to have a corporate sponsor or set up your own company in Bali.
However, note that the minimum capital requirement for setting up a company in Indonesia is IDR 2.5 billion (~USD 170,000) and the process of company registration requires a fair amount of paperwork.
Therefore, if you don’t plan on staying in Bali long term, an EOR provides you with a residence permit and frees you from the need for setting up a company just to stay in Bali or doing any visa runs.
#3 Compliance with local laws
Local regulations are continually changing, both for businesses and individuals. If you live in Bali or have a legal entity here, you have to make sure that everything complies with the laws continuously.
An EOR allows you to sidestep that hassle. It guarantees compliance with the ever-changing local regulations, thereby giving you one less thing to worry about.
#4 Shift your focus and accomplish things
Getting a KITAS via an EOR also allows you to focus your energy elsewhere instead of constantly being anxious about the legality of your stay and whether you meet the ever-changing local regulations.
Be it your business abroad or your aim to settle down in Bali, using an employer of record service removes the burden of bureaucracy off your shoulders and enables you to dedicate on your goals fully.
Staying in Bali long term
Set up a representative office in Bali
For a permanent stay, however, you can also consider registering a company or setting up a representative office in Bali. Setting up a representative office allows different activities and benefits for business owners. Also, in the long-term, it is more cost-effective compared to EOR.
Staying in Bali for a shorter term
Obtain a business visa
If you are planning a short-term stay in Bali, however, obtaining a business visa would be an easier option. With a business visa, you will be able to conduct business activities and study the market. However, note that a business visa does not allow you to take up any employment in Indonesia.
Interested in using our employer of record service in Bali?
Contact our Bali office directly via [email protected] or send your questions via the form below.