-
Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
Are you looking to relocate for retirement? Indonesia is increasingly popular as a destination for retirees looking for a rich culture and appealing climate.In this article, we will explore the key requirements for applying for a retirement visa in Indonesia and provide valuable insights for planning your relocation to the country.
Benefits for Retirement Visa holders in Indonesia
Indonesia’s retirement visa is specifically designed to enhance the quality of life of those looking to embrace their golden years in the country’s vibrant and diverse culture. As a retirement visa holder, you can enjoy the following benefits:
- Long-term residency options – Depending on the stay permit, a retirement visa in Indonesia allows you to stay in the country for up to 5 years, with the possibility of renewal.
- Flexibility in travel – you are allowed to enter and exit Indonesia within the validity of your retirement visa. You can explore neighboring countries or return home for visits without losing your residency status in the country.
- Opportunities for leasing property – With a retirement visa, you can lease property in Indonesia, which provides you with more flexibility in moving to a location that is adapted to your needs.
- Open an account from a local bank – with a retirement visa, you can open a local bank account in Indonesia. You can manage finances, receive pensions, and handle daily expenses without incurring high international transaction fees.
How to Apply for a Retirement Visa in Indonesia
Eligibility Requirements for securing a Retirement Visa
If you are intending to retire in Indonesia, you must ensure that you meet eligibility requirements. Retirement visas do not allow you to work in Indonesia and acquire income from local sources, meaning that you will need to demonstrate your ability to support yourself. To qualify for a retirement visa in Indonesia, you must meet the following criteria:
- Must be at least 55-60 years old (minimum age varies depending on the visa classification)
- Must have no intention of working in Indonesia.
- Must have health and life insurance with a minimum of Rp 25 million (approximately USD 1,600) coverage
- Required to sign a one-year lease agreement for your accommodation
- Must hire a domestic helper or maid as part of their living arrangements
- Provide proof of sufficient funds, which typically includes a minimum pension or deposit account showing at least USD 18,000 per year.
Different Types of Retirement KITAS in Indonesia
As a requirement, you need a Kartu Izin Tinggal Terbatas (KITAS) to reside in Indonesia as a foreigner. It’s a limited-stay permit that allows foreigners to live in Indonesia long-term. There are two types of retirement KITAS:
| Types of KITAS | Eligibility Requirements | Description |
| E33F Retirement KITAS | – A monthly income of at least USD 3,000 is required, which can come from pensions or other stable sources. – A personal bank statement showing a minimum balance equivalent to USD 2,000 over the last three months may also be necessary. | Valid for 1 year, starting from the date of arrival in Indonesia and can be extended to a maximum of 4 extensions. After holding the Retirement KITAS for four years, holders may apply for a permanent residency permit (KITAP). |
| E33E Golden Visa | – Proof of living expenses for self and family amounting to at least USD $2,000 – Deposit of at least USD $50,000 in a state-owned bank- Proof of income of at least USD $3,000 per month | Valid for five years and is also extendable. It is specifically designed for retirees aged 60 and above who wish to live in Indonesia. Both types of permits prohibit employment within the country. |
Retirement Visa Application Process in Indonesia
A retirement visa application is overseen by the Directorate General of Immigration under the Ministry of Law and Human Rights. Emerhub’s visa application service can help review all the documents necessary for your application, as well as coordinate with the local consulate throughout the entire process:
- Document Preparation – Emerhub can prepare all the documents before submitting your application to the Ministry of Human Rights. Here’s what you will need for the retirement visa application:
- A valid passport with at least 18 months remaining before expiration with 6 blank pages.
- Recent passport-sized photographs with a red background.
- Proof of health and life insurance policy.
- A copy of your lease agreement that includes the property owner’s name, address of the residence, amount of rent, and the owner’s identity card (KTP).
- Financial statements demonstrating your income or savings or proof that you’re holding a pension.
- A letter that states you will employ a maid, will not be working in Indonesia, and have secured accommodation.
- Visa Pickup Process – Once your application is approved, you will receive a Telex visa, which allows you to pick up your visa at an Indonesian embassy or consulate from your home country.
- Additional Requirements at the Embassy – At the embassy, you may be asked to provide additional documentation or complete forms related to your application. It’s essential to follow all instructions carefully to avoid delays. To assist you with this step, you can get in touch with our compliance experts in Indonesia to help you obtain additional requirements.
- Conversion to Temporary Residence Permit (KITAS) – Upon arrival in Indonesia with your retirement visa, you will need to convert it into a Temporary Residence Permit (KITAS). This process involves visiting the local immigration office where you will provide biometric data and complete the necessary paperwork. As a retirement KITAS holder, you will receive the following documents:
- A retirement KITAS
- A certificate of registration of temporary residency (SKPPS & SKTT)
- Resort police report (STM)
- Police card (SKLD)
Key Considerations for Retiring in Indonesia as an Expat
Tax Obligations for Retirees in Indonesia
Once you obtain a retirement KITAS, you become a tax resident in Indonesia. This means you are required to pay income tax and comply with Indonesian tax laws. As a tax resident, all income earned within Indonesia, including pensions, may be subject to progressive tax rates based on your total income level. Retirement visa holders may be eligible for the following benefits:
However, retirement KITAS holders in Indonesia may also benefit from specific tax exemptions.
- If a retirement KITAS holder does not work or earn income from Indonesian sources, they may be classified as a non-tax resident. This classification means that there is no requirement to report income to the Directorate General of Taxes (DGT).
- Under current regulations, foreigners transitioning to tax residency in Indonesia may only be taxed on income sourced within the country for only up to four years. This system provides retirees with a degree of financial flexibility while living in Indonesia.
- For those who do have taxable income, Indonesia has established agreements with various countries to prevent double taxation. This means that if a Retirement KITAS holder pays taxes on their income in their home country, they may not have to pay them again in Indonesia.
Emerhub’s local compliance experts can help you navigate your tax obligations as a retirement KITAS holder via our tax and accounting service. We can also provide you with support in registering for a Tax Identification Number (NPWP) or help you apply for tax exemptions from the DGT.
Domestic Help Services for Retirees Living in Indonesia
Hiring domestic help for retirees in Indonesia is not only a requirement for a retirement visa in Indonesia but it can also significantly enhance your living experience in the country. Numerous agencies offer maid services tailored to foreign retirement visa holders. Remember, when planning your application, you must demonstrate your intention to hire these services.
Housekeepers (Pembantu Rumah Tangga) can assist with general household tasks such as cleaning, cooking, and laundry. For retirees needing more specialized support, personal care assistants can help with daily living activities like bathing, dressing, and medication management. If you have not yet found a domestic helper, our local team can find one for you.
With Emerhub, you can retire in Jakarta’s urban jungle or Bali’s captivating paradise beaches. Fill in the form below and get in touch with one of our relocation experts in Indonesia today.
