Are you thinking of moving to Indonesia? Whether you’re drawn to the bustling cityscapes of Jakarta or the island life in Bali, Indonesia is a popular destination for expats thanks to its relatively low cost of living and welcoming communities.
While adapting to life in Indonesia isn’t without challenges, these can be managed with the right approach. In this guide, we give you an outline on how you can navigate through visa regulations and help you adapt to Indonesia’s diverse local culture.
Understanding Visa and KITAS Regulations in Indonesia
As an expat, you need to understand Indonesia’s immigration regulations. Visit Visas are primarily used for short-term visits, such as tourism, business, or social purposes. They typically have a validity period ranging from 30 days to one year, depending on the type of visa. Visit Visas in Indonesia do not grant residency status and usually require extensions if you wish to stay longer.
On the other hand, a KITAS (Kartu Izin Tinggal Terbatas) is a Limited Stay Permit Card that allows you to reside in Indonesia for extended periods, typically for work (remote or otherwise), investment, retirement, or family reunification. It is issued after obtaining a Stay Visa, such as a work or retirement visa, and grants temporary residency rights.
After three consecutive years of holding a KITAS, you can then apply for a Permanent Stay Permit (Kartu Izin Tinggal Tetap - KITAP). This permit is valid for 5 years so you don’t need to continuously renew your KITAS every year.
| Visit Visas | Stay Visa |
|---|---|
| Can not be converted to a KITAS/ Stay Permit | Basis to grant a KITAS/ Stay Permit |
| Index visa B, C, and D | Index Visa E |
| Purpose: such as for tourism, family visit, business meetings, employment and any commercial activities is prohibited with this visa | Purpose: working, remote working, family unification, investment, retirement |
Most Common Visa Options for Expats in Indonesia
Short-term Visit Visas in Indonesia
Short-term visas in Indonesia do not permit formal employment but are designed for various business-related activities, such as market research for investment or company expansion. Several visa options cater to these needs:
- Visa on Arrival (VOA): Available to select nationalities, this single-entry visa is valid for 30 days and can be extended once.
- Visa Exemption: offers 30 days non-extendable visit for nine ASEAN nations (Brunei, Philippines, Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand, and Vietnam).
- Single Entry Visit Visa: Allows stays of up to 60–180 days and is suitable for specific business activities.
- Multiple Entry Visas (D1/D2): Designed for longer-term business or governmental purposes, these visas allow multiple entries over one, two, or five years.
- Performer’s Visa: This visa permits receiving honorariums or fees exclusively for cultural events or artistic performances.
These visas provide flexibility for short-term business activities while ensuring compliance with Indonesian regulations. However, none of these options allow employment or earning any income from an Indonesian entity.
Most popular KITAS options in Indonesia
If you are planning to work in Indonesia, there are specific visa options designed to accommodate long-term stays and formal employment. These visas cater to various professional needs, whether you intend to work for an Indonesian company, start your own business, or work remotely for an overseas employer:
| Visa Type | Details | Requirements |
|---|---|---|
| Work KITAS (E23) | - Validity: 6 months to 2 years - For expats who want to engage in employment in Indonesia in various professional fields. - Not allowed to take up additional jobs outside of your work contract. - You are also not allowed to sell goods or services unless directly required by your employer. | - Need to be sponsored by an employer. - Valid passport - Bank statements or proof of financial resources of at least USD 2,000. - Recent color photo |
| Investor KITAS (E28) | - Validity: 2 years - For expats who own shares in a company or invest in public equities. - 2 types of Investor KITAS: - E28A for Shareholders - E28C for Bond or Public Domain Investors | - Evidence of share ownership or investment depending on the type of E28 KITAS. - Valid passportPolice clearance or certificate of good conduct from country of origin - Proof of financial stability - Curriculum Vitae (CV) |
| Remote Worker (E33G) | - Validity: 1 year - For digital nomads and remote workers employed by companies outside Indonesia. - Not allowed to receive compensation from any Indonesian entities. | - Employed by a foreign company outside Indonesia - USD 60,000 annual income - Proof of sufficient financial resources - Recent color photo - Employment contract from a foreign entity |
Emerhub’s local relocation experts can assist you in selecting the appropriate stay permit that fits your goals. By providing expert guidance on Indonesia’s complex visa regulations, our consultants will ensure that you meet eligibility requirements to avoid any delays with your application.
How to Obtain a Visa as an Expat in Indonesia
Visa applications in Indonesia are now primarily done online through the Indonesia e-Visa portal for added efficiency. To ensure that you comply with all the key requirements, Emerhub can manage your application on your behalf by helping you navigate all the key steps:
- E-Visa Online Application – We’ll complete the visa application form, upload all required documents based on the visa type you want to apply for, and ensure that all details and documents are complete before submission.
- e-Visa Notification – Once the application is submitted, you will get a notification regarding your e-Visa status. Most applications are processed within 3 to 7 working days, but this timeframe can depend on the workload of the immigration department. It’s advisable to submit your application at least two weeks before your intended travel date.
- e-Visa Approval – After approval, you can download your e-Visa from the portal. We recommend that you print a hard copy to be presented upon arrival to Indonesia.
- Convert to KITAS – Once you’re in Indonesia, we can help you convert your Visa into KITAS within 30 days after arrival. This step will include submitting your biometrics data to the immigration department.
- Local Registration – After obtaining a KITAS, you will need to register with the local authorities within 14 days. This includes obtaining a Temporary Registration Certificate (SKPPS) from the local police station.
Emerhub provides comprehensive assistance for expatriates navigating the visa process in Indonesia. We’ll ensure a thorough review of your e-visa and Work Permit applications to avoid any delays.
Tax Regulations for Expats in Indonesia
Expats in Indonesia are required to report income earned locally or globally depending on their residency status. A foreigner is considered a tax resident if they reside in Indonesia for more than 183 days within any 12-month period or is a KITAS holder with the intention of residing in the country.
Once classified as a tax resident, you are obligated to report and pay taxes on worldwide income, regardless of where the income is generated or received. This includes income from employment, business activities, investments, or other sources outside Indonesia. However, foreign tax credits may be available to mitigate double taxation under applicable double taxation agreements (DTAs) or Indonesian tax laws.
Tax rates for expats in Indonesia are progressive, ranging from 5% to 35% based on income brackets:
| Income (IDR) | Tax Rates (%) |
|---|---|
| 0 - 60,000,000 | 5% |
| 60,000,001 - 250,000,000 | 15% |
| 250,000,001 - 500,000,000 | 25% |
| 500,000,001 - 5,000,000,000 | 30% |
| 5,000,000,001 onwards | 35% |
For expats, income is broadly defined as any economic benefit you receive while in Indonesia. This includes the following:
- Compensation from work or services
- Lottery, prizes, and awards
- Profits from individual business activities
- Gains from the sale or transfer of assets
- Interest income, dividends, royalties, and rents
- Benefits in Kind (BIK)
Emerhub can help you ensure compliance with tax regulations in Indonesia. Our local experts will help you obtain a Tax Identification Number (NPWP) from the local tax office as well as navigate tax compliance requirements for both yourself and your company in Indonesia.
Finding Accommodation in Indonesia
One of the first steps you’ll need to consider when planning your move is where you want to move to and finding the right accommodation. Here are popular locations in Indonesia that are popular for expats:
- Jakarta: offers a vibrant urban lifestyle with numerous job opportunities in finance, technology, and healthcare. It has a diverse cultural scene and modern amenities, making it ideal for expats seeking professional development and urban living.
- Surabaya: Second-largest city in Indonesia with rich cultural experience and lower cost of living compared to Jakarta. Surabaya offers diverse work opportunities in industries like finance and education, along with quality education options for expat families.
- Bandung: Dubbed the "Paris of Java," Bandung is famous for its cool climate and creative vibe. It's a popular spot for digital nomads due to its affordable living costs and vibrant cultural scene.
- Yogyakarta (Jogja): This city is renowned for its cultural heritage and friendly locals. It offers an affordable lifestyle and is a favorite among remote workers and expats seeking a more relaxed pace of life.
- Malang: Located in East Java, Malang is a charming city with a cool climate and vibrant food scene. It's a hidden gem for digital nomads looking for a peaceful yet engaging environment.
In Indonesia, you cannot own property outright and would need to enter a leasehold agreement with a property owner. The lease should clearly outline the rental amount, security deposit requirements (usually one or two months' rent), and any specific tenant responsibilities or restrictions.
You have the option to rent furnished or unfurnished accommodations in Indonesia. Furnished rentals are more expensive but are more convenient since you can quickly move into the property. Meanwhile, unfurnished properties are recommended if you plan to stay in Indonesia long-term.
Cultural Considerations and Integration
Understanding the local culture is crucial for a successful transition, especially for expats from Western countries. Indonesia is a rich tapestry of ethnicities and traditions with over 300 ethnic groups contributing to its diverse cultural landscape.
The country is predominantly Muslim, with Islamic practices influencing daily life, such as prayer times and fasting during Ramadan. It's important for expats to be respectful of these practices and adapt to local customs, including modest dress codes, especially in more conservative areas. Additionally, there is a strong cultural emphasis on respect for elders and authority figures, with proper titles and deference being essential in interactions.
Learning Bahasa Indonesia is not a requirement but it helps integration within the community. Even basic phrases like "how are you?" (apa kabar?), "thank you" (terima kasih), and "excuse me" (tolong) can significantly improve interactions and show respect for the culture.
How can Emerhub Help with Your Move to Indonesia?
Emerhub offers comprehensive end-to-end support for expatriates relocating to Indonesia. We help to ensure your transition is seamless from the initial stages of the visa application process to post-arrival services. We can handle all the permits and local registration for you so you can skip the hassle and focus on planning your move.
Want to plan your move to Indonesia? Fill out the form below and one of our relocation experts will get in touch with you.
Frequently asked questions
How long can I stay in Indonesia on a Tourist Visa?
Expats can stay in Indonesia on a Tourist Visa for a maximum of 30 days. This visa can be extended once for an additional 30 days, allowing for a total stay of up to 60 days if the extension is applied for before the initial visa expires. The extension process must be initiated at an Immigration Office in Indonesia, typically requiring a fee similar to the original visa cost. For those eligible, the Visa on Arrival (VOA) option also permits a 30-day stay, which can similarly be extended for another 30 days under specific conditions. However, travelers entering Indonesia without a visa waiver cannot extend their stay and must leave before the initial 30 days are up to avoid overstay penalties.
Is it necessary to have a job offer before moving to Indonesia?
Having a job offer before moving to Indonesia is not strictly necessary. Aside from a Work KITAS, you can also relocate to the country as a student, investor, retiree, or with a spouse or dependent visa.
How do I open a bank account in Indonesia as an expat?
To open a bank account in Indonesia as an expat, you need to have a valid residence permit, either a KITAS or KITAP, since foreigners cannot open bank accounts with just a tourist visa. The general process involves choosing a bank, visiting a local branch in person, and submitting the required documents.. Once you've gathered the necessary documents and visited the bank, you'll fill out an application form and make your initial deposit to activate your account. After processing your application, which can often be completed within one day, you'll receive your Indonesian debit card and access to online banking services.