Ministry of Law and Human Rights Issue New Regulations Concerning Visa & Stay Permit

Recently, the Government of the Republic of Indonesia through the Ministry of Law and Human Rights and the Directorate General of Immigration has issued several Legislative Regulations in the field of immigration which revoke and replace the provisions regarding Visas and Stay Permits which were previously regulated in the Regulations of the Minister of Law and Human Rights Number 29 of 2021 concerning Visas and Stay Permits and several implementing regulations. The new regulations include:

1. Regulation of the Minister of Law and Human Rights Number 22 of 2023 concerning Visas and Stay Permits (hereinafter referred to as "Permenkumham 22/2023 concerning Visas and Stay Permits");
2. Decree of the Director General of Immigration Number IMI-0260.GR.01.01 of 2023 concerning Documents for Residence Permit Service Products and Documents for Residence Permit Requirements (hereinafter referred to as "Decree of the Director General of Immigration 0260/2023");
3. Decree of the Director General of Immigration Number IMI-0262.GR.01.01 of 2023 concerning the Amount of Living Costs While in Indonesian Territory as a Requirement for Applying for a Visit Visa and Limited Stay Visa (hereinafter referred to as "Decree of the Director General of Immigration 0262/2023"); And
4. Decree of the Director General of Immigration Number IMI-0257.GR.01.01 of 2023 concerning the Amount of Share Ownership and Turnover/sales value in Companies Outside Indonesian Territory for Individual Foreign Investors (hereinafter referred to as "Decree of the Director General of Immigration 0257/2023").

The promulgation of the aforementioned provisions affects the requirements for obtaining a Limited Stay Visa for Foreign Citizens who intend to invest in Indonesia, especially the minimum investment value as follows:

• LIMITED STAY VISA FOR A MAXIMUM OF 2 YEARS:
  1. proof of share ownership of at least IDR 10,000,000,000.00 (ten billion rupiah) or the equivalent stated in the data of the ministry or institution in the investment sector;
  2. Ministerial Decree regarding ratification of the establishment of a limited liability company legal entity; and
  3. Company bank statement for the last 2 (two) months.

• LIMITED STAY VISA FOR A MAXIMUM OF 5 YEARS:
  • For foreigners as individual investors who intend to establish a company in Indonesia
    1. proof of Immigration Commitment, in the form of a statement of commitment that the Foreigner will establish a company in Indonesia with issued capital (shares) or an investment value of at least US$2,500,000 (two million five hundred thousand US dollars) which must be fulfilled within 90 (nine) thirty) Days from the date the Limited Stay Permit is granted;
    2. proof of share ownership in companies outside the Indonesian Territory of at least 20%;
    3. proof of turnover/sales value in overseas companies with a value of at least US$ 25,000,000.00 (twenty-five million United States dollars)/per year.
  •  
  • For foreigners as individual investors who does not intend to establish a company in Indonesia

Proof of Immigration Commitment in the form of:

1. a statement of commitment to purchase Indonesian government bonds of at least US$350,000 (three hundred and fifty thousand US dollars);
2. statement of commitment to purchase shares in a public company in Indonesia for at least US$350,000 (three hundred and fifty thousand US dollars); or
3. a statement of commitment to purchase mutual funds from a public company in Indonesia for at least US$350,000 (three hundred and fifty thousand US dollars),

which must be fulfilled within a maximum period of 90 (ninety) days from the date of issuance of the Limited Stay Permit.

• For foreigners who will serve as members of the board of directors or members of the board of commissioners in companies to be established in Indonesia which are branches or subsidiaries of companies outside the territory of Indonesia:
  1. proof of Immigration Commitment, in the form of a statement of commitment from the company to establish a branch or subsidiary in Indonesia with an investment value of at least US$25,000,000 (twenty-five million US dollars) which must be fulfilled within a period of no more than 90 (ninety) days from the date the limited Stay Permit is granted;
  2. proof of share ownership in companies outside the Indonesian Territory of at least 20%;
  3. proof of turnover/sales value in overseas companies with a value of at least US$ 25,000,000.00 (twenty-five million United States dollars)/per year.

• LIMITED STAY VISA FOR A MAXIMUM OF 10 YEARS:
  • For foreigners as individual investors who intend to establish a company in Indonesia
    1. proof of Immigration Commitment, in the form of a statement of commitment that the Foreigner will establish a company in Indonesia with issued capital (shares) or an investment value of at least US$5,000,000 (five million US dollars) which must be fulfilled within 90 (nine) thirty) Days from the date the Limited Stay Permit is granted;
    2. proof of share ownership in companies outside the Indonesian Territory of at least 20%;
    3. proof of turnover/sales value in overseas companies with a value of at least US$ 50,000,000.00 (fifty million United States dollars)/per year.
  •  
  • For foreigners as individual investors who does not intend to establish a company in Indonesia

Proof of Immigration Commitment, in the form of:

1. a statement of commitment to purchase Indonesian government bonds of at least US$700,000 (seven hundred thousand US dollars);
2. statement of commitment to purchase shares in a public company in Indonesia for at least US$700,000 (seven hundred thousand US dollars); 
3. a statement of commitment to purchase mutual funds from a public company in Indonesia for at least US$700,000 (seven hundred thousand US dollars); or
4. a statement of commitment to buy a flat or apartment worth at least US$1,000,000 (one million US dollars).

which must be fulfilled within a maximum period of 90 (ninety) days from the date of issuance of the Limited Stay Permit.

• For foreigners who will serve as members of the board of directors or members of the board of commissioners in companies to be established in Indonesia which are branches or subsidiaries of companies outside the territory of Indonesia.
  1. proof of Immigration Commitment, in the form of a statement of commitment from the company to establish a branch or subsidiary in Indonesia with an investment value of at least US$50,000,000 (fifty million US dollars) which must be fulfilled within a period of no more than 90 (ninety) days from the date the limited Stay Permit is granted;
  2. proof of share ownership in companies outside the Indonesian Territory of at least 20%;
  3. proof of turnover/sales value in overseas companies with a value of at least US$ 50,000,000.00 (fifty million United States dollars)/per year.

Considering that Share Ownership and Investment requirements to be able to obtain a Limited Stay Visa have been increased, based on Article 38 paragraph (5) Permenkumham 22/2023 concerning Visas and Stay Permits, Foreigners who are unable to fulfil the Share Ownership requirements can apply for a Limited Stay Visa for work by holding positions as a Member of the Board of Directors or Member of the Board of Commissioners of their duly established Company in Indonesia (PT PMA).

Any inquiries regarding the new Visa & Stay Permit Law, please contact us at info@baslawfirm.co.id