Indonesian-resident taxpayers are subject to tax on worldwide income. Nonresidents are subject to tax on Indonesian-source income only. Diplomats and representatives of certain international organizations are excluded from Indonesian tax if the countries they represent provide reciprocal exemptions.
Individuals are considered resident for tax purposes if they are present in Indo nesia for more than 183 days within a 12-month period or if, within the calendar tax year, they reside in Indonesia with the intent to stay.
Under a tax regulation, which was issued on 12 January 2009, an Indonesian national who works overseas for more than 183 days within any 12-month period is considered a nonresident.
Income subject to tax. The taxation of various types of income is described below.
Employment income. Taxable income of an employee includes wages, salary, commissions, bonuses, pensions, directors’ fees and other compensation for work performed. Compensation in kind for work or services is not taxable income for the employee and is not a deductible expense for the employer. However, this treatment does not apply to employees of the following:
- Oil and gas companies under contracts entered into under pre-1984 law
- Representative offices, which are not subject to Indonesian corpo rate income tax
- Various international organizations and embas sies
- Employers who are taxed based on a “deemed profit” basis
- Employers who are subject to final tax
Although fringe benefits provided to employees, including employer-provided housing and automobiles, are not included in an employee’s taxable income, they are allowable deductions for the employer if the employee works in a remote area. Approval for remote area status must be obtained by the employer. Benefits received in the form of cash allowances are taxable.
Termination pay and lump-sum pension payments are subject to final withholding tax at the rates set forth in Rates.
An Indonesian national who works overseas for more than 183 days within a 12-month period is not subject to tax on his or her employment income that is earned overseas and that is subject to tax overseas.
Self-employment and business income. Members of partnerships, firms and associations, as well as other individuals, may be subject to tax on self-employment or business income.
Taxable income includes trading profits, profits from the sale of property connected with a business, annuities and waivers of debts (except waivers of debts for a small entrepreneur of up to IDR5 million).
Self-employment and business income is combined with other income and taxed at the rates set forth in Rates.
Directors’ fees. Directors’ fees are included in taxable employment income.
Investment income. Dividends paid to individuals, rents, royalties and certain interest are subject to withholding tax at various rates. These types of investment income generally are combined with other income and taxed at the rates set forth in Rates. However, the 20% withholding tax on interest derived from the following in vestments is a final withholding tax:
- Time deposits, including time deposits placed abroad through a bank established in Indonesia or through a branch of a foreign bank
- Certificates of deposit
- Savings accounts
Income from the rental of land and buildings is subject to a final withholding tax at a rate of 10%.
Dividends paid to resident individuals are subject to a final withholding tax at a rate of 10%.
Final income tax regime for small and medium-size business taxpayers. Effective from 1 July 2013, a new final tax regime applies to the business income of certain individuals and corporate taxpayers, excluding permanent establishments, with a gross turnover of less than IDR4,800,000,000 per year. Qualifying taxpayers are subject to income tax at a rate of 1% of their monthly gross turnover, and the income tax is considered to be final. The gross turnover includes a local branch’s gross income, except for income from outside Indonesia.
The following taxpayers are excluded from this final tax:
- Individual taxpayers performing trading and/or service activities who use assembled infrastructure and public facilities that are not intended for commercial use
- Corporate taxpayers who have not yet begun commercial operations
- Corporate taxpayers that generate annual turnover in excess of the IDR4.8 billion threshold within a year after beginning their commercial operations
The business income covered by the final tax regime does not include income from independent personal services, such as services provided by lawyers, accountants, medical doctors and notaries.
Taxpayers qualifying for a different final tax regime (for example, construction companies) are not eligible for this 1% final tax.
Income derived by qualifying taxpayers other than business income that is subject to this 1% final tax, is taxed according to the prevailing tax rules.
Taxation of employer-provided stock options. Employer-provided stock options are not taxable to an individual at the time of grant or exercise. Income tax at the individual’s marginal tax rate is imposed at the time of sale on the difference between the sale price of the shares and the strike price. Sales of stock on the Indonesian stock exchange are also subject to a final withholding tax at a rate of 0.1% on the gross sale value of the stock.
Capital gains and losses. Capital gains are taxed at the same rates as business income and income from employment (see Rates). Capital gains are added to income from other sources to arrive at total taxable income.
The transfer of shares listed on the stock exchange is subject to withholding tax at a rate of 0.1% of the gross value of the transfer if the transferred shares are ordinary shares. An additional tax at a rate of 0.5% of the share value is levied on sales of founder shares associated with a public offering. Both withholding taxes are final. Founder shareholders must pay the 0.5% tax within one month after the shares are listed. Founder shareholders who do not pay the tax by the due date are subject to income tax on the gains at the ordinary income tax rates.
Income tax on land and building transfer. A transfer of land and buildings is subject to final income tax on the deemed gain resulting from the transfer or sale. The tax is charged to the transferor (seller). The tax rate is 2.5% of the gross transfer value (tax base). However, for transfers of simple houses and simple apartments conducted by taxpayers engaged in the property development business, the tax rate is 1%. This tax must be paid on receipt of some or all payments for the transfer of rights to land and buildings. The income tax is calculated based on the amount of each payment received including the down payment, interest, collection fees and other additional payments made by the buyer with respect to the transfer of the land and building.
The tax base is the higher of the transaction values stated in the relevant land and building right transfer deed or tax object sales value (Nilai Jual Objek Pajak, or NJOP). However, for transfers to the government, the tax base is the amount officially stipulated by the applicable government officer in the relevant document. In a government-organized auction, the gross transfer value is the value stipulated in the relevant deed of auction.
The transfer of rights deed can be signed by a notary only if the income tax has been fully paid.
Deductible expenses. To determine the taxable income of regular employees, gross income is reduced by the following amounts:
- Standard deduction at a rate of 5% of gross income, up to a maximum of IDR6 million a year
- Contributions to a pension fund approved by the Minister of Finance and to TASPEN (Pension Insurance Saving Agency), as well as old-age savings or old-age allowance contributions to TASPEN and to the Worker Social Security program (BPJS Ketenagakerjaan), paid by employees
To determine the taxable income of a pensioner, the gross pension is reduced by a deduction of 5% of the gross pension, up to a maximum of IDR2,400,000 a year.
Personal allowances. Annual personal allowances are deductible from taxable income.
In June 2016, the Indonesian government announced new amounts of personal allowances. These new amounts are retroactively effective from January 2016. The following are the new amounts of the personal allowances.
Amount of allowance
Type of allowance IDR
Personal allowance 54,000,000
Married persons’ additional
Wife’s additional allowance if receiving
income not related to husband’s
or other family member’s income 54,000,000
Additional allowance for each
dependent family member in
direct bloodline and for adopted
children, up to a maximum of
three individuals 4,500,000
Business deductions. A self-employed business person may de duct from gross income ordinary expenses connected with earning income, including costs of materials, employee remuneration, bad debts, insurance premiums and administrative costs. Taxes other than income tax are deductible. If employee income taxes are borne by an employer, a grossing-up calculation must be made to claim the expense as a deduction from gross profit.
A business may also deduct the following expenses:
- Depreciation and amortization, in accordance with specified rates
- Contributions to approved pension funds
- Losses from the sale of assets or rights used in a business
- Foreign-exchange losses
- Costs of research and development performed in Indonesia
- Scholarship, apprenticeship and training costs
- Fifty percent of the cost of automobiles provided to employees
- Fifty percent of the cost of mobile phones provided to employees
- Office refreshments provided to all employees
The following expenses may not be deducted:
- Provisions or reserves, with exceptions for certain industries
- Premiums for employees’ life and health insurance, unless paid by the employers and treated as income taxable to the employees
- Benefits in kind provided to employees, including housing
- Gifts, support and donations, with exceptions for certain donations
- Personal expenses
- Salary paid to a member of an association, partnership or a limited partnership whose capital is not divided into shares
- Income tax and administrative sanctions in the form of interest, fines and surcharges, and criminal sanctions in the form of fines in connection with provisions of the tax laws
Rates. The following tax rates apply to individuals.
|Taxable income||Tax rate||Tax due||Cumulative tax due|
The final withholding tax rates apply to termination pay.
|Cumulative tax due
The final withholding tax rates apply to lump-sum payments of pensions.
|Taxable income||Tax rate||Tax due||Cumulative tax due|
Nonresident taxpayers are subject to tax at a flat rate of 20% on all Indonesian-source income.
If the resident individual does not have a required Tax Identification Number, the tax rates for withholding tax on employment income are increased by 20%. As a result, the rates range from 6% to 36%.
Credits. If non-employment income is also taxed in the country in which it arises, a foreign tax credit is allowed in computing the Indonesian tax. The credit equals the lesser of the foreign tax or the Indonesian tax applicable to that income.
Relief for losses. In general, losses may be carried forward for up to five years.
A spouse’s business losses may be offset against the business profits of the other spouse.
Land and buildings tax. A new regulation on land and building tax in Indonesia has been introduced. The land and building tax is now a 100% local government tax (Pajak Daerah). Land and building tax is levied on the sales value of the property at a maximum rate of 0.3%. The central government sets the maximum rate. The local government is authorized to determine its own rate though local regulations, provided that it does not exceed the maximum rate set by the central government. The central government also determines the minimum value that is exempt from land and building tax, which is IDR10 million.
The new rules are effective based on each local regulation. By 31 December 2013, all provinces should have their own regulations regarding land and building tax. The existing regulation remains in effect until the local governments issue the new regulations.
Duty on the acquisition of land and building rights. In general, a transfer of land and building rights is subject to duty on the acquisition of land and building rights (Bea Pengalihan Hak Atas Tanah dan Bangunan, or BPHTB). The duty is payable by the buyer or the party receiving or obtaining the rights. Qualifying land and building rights transfers include sale-purchase and trade-in transactions, grants, inheritances, contributions to corporations, rights separations, buyer designations in auctions and executions of court decisions with full legal force. Acquisitions of land and building rights in certain nonbusiness transfers may be exempt from BPHTB.
The tax base for the BPHTB is the Tax Object Acquisition Value (Nilai Perolehan Objek Pajak, or NPOP), which in most cases is the higher of the market (transaction) value or the NJOP of the land and building rights concerned. The tax due on a particular event is determined by applying the applicable duty rate of 5% to the relevant NPOP less an allowable non-taxable threshold. The non-taxable threshold amount varies by region. The maximum is IDR60 million, except in the case of inheritance, for which it may reach IDR300 million. The government may change the nontaxable threshold through regulation.
BPHTB is normally due on the date that the relevant deed of land and building rights transfer is signed before a public notary. The deed of rights transfer can be signed by a notary only if the BPHTB has been paid.
The institution called Badan Penyelengara Jaminan Sosial (BPJS) administers the Indonesia social security program. BPJS has the following two categories:
- Worker Social Security (BPJS Ketenagakerjaan)
- Health Care (BPJS Kesehatan)
Both BPJS Ketenagakerjaan and BPJS Kesehatan are mandatory.
Expatriates are required to participate if they work in Indonesia for more than six months. Indonesia has not entered into a totalization agreement with any country.
The following percentage contributions of monthly salary are required for employers and employees under the Worker Social Security program.
Percentage of contribution
Type of Employer Employee
program % %
(Jaminan Kecelakaan Kerja) 0.24 to 1.74 (a) 0
Life insurance benefits
(Jaminan Kematian) 0.3 0
(Jaminan Hari Tua) 3.7 2
Pension benefit (b)
(Jaminan Pensiun) 2 1
a) The rate depends on the type of industry of the company.
b) The salary is capped at IDR7,335,300 per month, effective from March 2016. The maximum monthly contribution amount is IDR146,706 for the employer and IDR73,353 for the employee. The salary cap is adjusted each year by a factor of one plus the previous year’s gross domestic growth.
The following percentage contributions of monthly salary are required for employers and employees under the Health Care program.
Percentage of contribution (%)
For the contributions under the Health Care program, the salary is capped at IDR8 million per month. Consequently, the maximum employer contribution is IDR320,000 per month, and the maximum employee contribution is IDR80,000 per month.
Tax filing and payment procedures The tax year in Indonesia is the calendar year.
Married persons can separately file their own income tax returns even if they did not enter into a prenuptial agreement.
Employee taxes are withheld by the employer. The employer must file a monthly return by the 20th day of the following month. The monthly tax return for December serves as the annual return because it also reports the cumulative income and related tax for the respective calendar year.
Individuals are required to file individual income tax returns by 31 March following the end of the tax year. Individuals earning income only from employment are not required to file monthly tax returns.
Withholding tax is levied on a variety of payments to residents. A self-employed professional, including an accountant, lawyer, architect or consultant, has tax withheld at source on the settlement of invoices. The withholding tax rate is 2% of the gross amount. Withholding tax is an advance payment of income tax.
Self-employed individuals must make monthly advance tax payments. The monthly payment amount is based on the previous year’s tax liability, reduced by tax withheld at source during the preceding year. The payment is due on the 15th day of the month following the income month.
Nonresident foreign taxpayers are not required to file tax returns in Indonesia, unless they conduct business or activities in Indonesia through permanent establishments.
Double tax relief and tax treaties
A taxpayer who has income derived outside Indonesia that is subject to taxation abroad is entitled to a credit, not to exceed the Indonesian tax payable on the foreign income.
Indonesia has entered into double tax treaties with the following jurisdictions.
Algeria Jordan Seychelles
Australia Korea (North) Singapore
Austria Korea (South) Slovak Republic
Bangladesh Kuwait South Africa
Belgium Luxembourg Spain
Brunei Malaysia Sri Lanka
Darussalam Mexico Sudan
Bulgaria Mongolia Suriname
Canada Morocco Sweden
China Netherlands Switzerland
Croatia New Zealand Syria
Czech Republic Norway Taiwan
Denmark Pakistan Thailand
Egypt Papua New Tunisia
Finland Guinea Turkey
France Philippines Ukraine
Germany Poland United Arab
Hungary Portugal Emirates
Hong Kong SAR Qatar United Kingdom
India Romania United States
Iran Russian Uzbekistan
Italy Federation Venezuela
Japan Saudi Arabia Vietnam
The tax treaties generally provide for the elimination of double taxation of personal income and include specific provisions pertaining to artists, athletes, teachers, students and those engaged in employment and independent personal services.
The Government of Indonesia has issued Presidential Regulation Number 21 of 2016 regarding Visit-Visa Exemption. This new regulation is effective from 10 March 2016 and revokes the Presidential Regulation Number 69 of 2015, as amended in the Presidential Regulation Number 104 of 2015, regarding the same matter.
Under the newly enacted Presidential Regulation, the number of jurisdictions whose nationals are exempted from the obligation to obtain a Visit-Visa in advance to enter Indonesia is increased to 169. This exemption is subject to the following terms and conditions:
- The exemption can be applied to carry out various activities such as for tourism, transit, family visits, social, art and cultural activities, government visits, giving lectures, attending business meetings, seminars and conferences, and certain other activities.
- The exemption cannot be used for journalistic purposes.
- The duration of the stay in Indonesia is limited to 30 days.
- The exemption cannot be renewed, extended or converted into another type of visa.
- Nationals of foreign countries eligible for the exemption may only enter Indonesia through certain immigration checkpoints.
This Visit-Visa Exemption is available to nationals from the following jurisdictions.
Albania Guyana Philippines
Algeria Haiti Poland
Andorra Honduras Portugal
Angola Hong Kong Puerto Rico
Antigua and SAR Qatar
Barbuda Hungary Romania
Argentina Iceland Russian
Armenia India Federation
Australia Ireland Rwanda
Austria Italy St. Kitts
Azerbaijan Jamaica and Nevis
Bahamas Japan St. Lucia
Bahrain Jordan St. Vincent
Bangladesh Kazakhstan and the
Barbados Kenya Grenadines
Belarus Korea (South) Samoa
Belgium Kiribati San Marino
Belize Kuwait São Tomé
Benin Kyrgyzstan and Príncipe
Bhutan Latvia Saudi Arabia
Bolivia Laos Senegal
Bosnia and Lebanon Serbia
Herzegovina Lesotho Seychelles
Botswana Liechtenstein Singapore
Brazil Lithuania Slovak Republic
Brunei Luxembourg Slovenia
Darussalam Macau SAR Solomon Islands
Bulgaria Macedonia South Africa
Burkina Faso Madagascar Spain
Burundi Malawi Sri Lanka
Cambodia Malaysia Suriname
Canada Maldives Swaziland
Cape Verde Mali Sweden
Chad Malta Switzerland
Chile Marshall Taiwan
China Islands Tajikistan
Comoros Mauritius Tanzania
Costa Rica Mauritania Thailand
Côte d’Ivoire Mexico Timor-Leste
Croatia Moldova Togo
Cuba Mongolia Tonga
Cyprus Monaco Trinidad and
Czech Republic Morocco Tobago
Denmark Mozambique Tunisia
Dominica Myanmar Turkey
Dominican Namibia Turkmenistan
Republic Nauru Tuvalu
Ecuador Nepal Uganda
Egypt Netherlands Ukraine
El Salvador New Zealand United Arab
Estonia Nicaragua Emirates
Fiji Norway United Kingdom
Finland Oman United States
France Palau Uruguay
Gabon Palestinian Uzbekistan
Georgia Authority Vanuatu
Gambia Paraguay Vatican City
Germany Panama Venezuela
Ghana Papua New Vietnam
Greece Guinea Zambia
Grenada Peru Zimbabwe
Visitors from 64 jurisdictions may obtain a visa on arrival and pay a visa-on-arrival fee, which is USD35. The visa has a duration of up to 30 days and can be extended only one time for an additional period of up to 30 days. The following are the jurisdictions whose nationals may obtain a visa on arrival.
Algeria Iceland Poland
Argentina India Portugal
Australia Ireland Qatar
Austria Italy Romania
Bahrain Japan Russian
Belgium Korea (South) Federation
Brazil Kuwait Saudi Arabia
Bulgaria Laos Slovak Republic
Cambodia Latvia Slovenia
Canada Libya South Africa
China Liechtenstein Spain
Cyprus Lithuania Suriname
Czech Republic Luxembourg Sweden
Denmark Maldives Switzerland
Egypt Malta Taiwan
Estonia Mexico Timor-Leste
Fiji Monaco Tunisia
Finland Netherlands Turkey
France New Zealand United Arab
Germany Norway Emirates
Greece Oman United Kingdom
Hungary Panama United States
Visitors from other countries must apply for a visa at an Indonesian embassy or consulate abroad.
Foreign visitors wishing to conduct business meetings or noncommercial activities that have governmental, tourism, social and cultural aspects may obtain one of the following entry visas from an Indonesian embassy or consulate abroad:
- Visa Kunjungan (VK) (single entry/single visit visa)
- Visa Kunjungan Beberapa Kali Perjalanan (VKBP) (multiple entries/multiple visit visa)
The VKBP application must be made by a sponsor to an office of the Directorate General of Immigration in Indonesia. The Directorate General of Immigration informs the overseas Indonesian embassy or consulate through a telex confirmation when the visa application is approved. The applicant must obtain telex confirmation from the Directorate General of Immigration Jakarta, before submitting a visa application to the embassy or consulate. The embassy or consulate then issues the visa.
A VK is issued for a visit of up to 60 days. The company or sponsor must provide a valid reason for requesting the visa, which may be renewed for additional one-month periods, subject to a maximum duration of the visa of six months (may be renewed four times). A VK application may be submitted directly to the Indonesian embassy or consulate in the home country. A holder of a VK or VKBP is not eligible for a work permit. A VK becomes invalid on exit from Indonesia, and another similar visa is required for any subsequent similar visits.
A VKBP is valid for a maximum period of 12 months. Under this type of visa, each visit may not exceed 60 days. A multiple-entry visa is recommended for people who regularly visit Indonesia to conduct business meetings and who do not establish residency in Indonesia.
Work permits and self-employment
The Indonesian government prefers that expatriates be employed in Indonesia only in positions that cannot currently be filled by Indonesian nationals. Companies that wish to hire expatriates must provide the necessary education and training programs for Indonesians who will replace the expatriates within a reasonable time period.
Employers must require their expatriate employees to obtain work permits. Obtaining the necessary visas and work permits in Indonesia can be a protracted and complex process. It is strongly recommended that a prospective employer work with a local agent to obtain the permits and visas necessary to employ expatriates. Work permits are usually issued for a maximum period of 12 months and may be extended, subject to approval from the government.
Under Article 4 of the Regulation of Minister of Manpower Number 16 of 2015, the following types of employers may employ foreign nationals:
- Government institutions, international bodies and representative of foreign countries
- Representative offices of foreign companies, including foreign trading companies and foreign news companies
- Foreign private companies
- Legal entities established under Indonesian Law or foreign enterprises registered with the relevant authorized institutions in Indonesia
- Social, religious, educational and cultural institutions
- Impresariat service enterprises
Under Article 4 (2) of the Regulation of Minister of Manpower Number 16 of 2015, the following types of employers cannot employ foreign nationals:
- Commanditaire partnerships
- Commerce enterprises
- Limited partnerships
Application procedure. An employer or sponsor must submit a Foreign Manpower Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing, or RPTKA) document to the Ministry of Manpower (Kementerian Ketenagakerjaan, or Kemenaker) or to the Investment Coordinating Board (Badan Koordinasi Penanaman Modal, or BKPM). The manpower plan should include job titles for the expatriate applicants, a description of the job requirements, the number of individuals required, the time frame planned for each function, the number of Indonesians to be trained to replace the expatriates (not required for expatriates who will hold director or commissioner positions) and the educational and training programs planned for the Indonesian employees. With respect to the training of Indonesians to replace expatriates, the employer must train at least one Indonesian counterpart for every expatriate employed. A manpower plan must be approved before the submission of a work permit application.
Under Article 38 of the Regulation of Minister of Manpower 16 of 2015 regarding the Procedures for Foreign Manpower Utilization, to apply for work permits, the employer should pay in advance the Foreign Manpower Utilization Compensation Fund Levy (Dana Kompensasi Penggunaan Tenaga Kerja Asing, or DKPTKA) in the amount of USD100 per month for each foreign person employed.
The work permit application is then submitted to the General Director of Manpower Development and Placement (Direktur Jenderal Pembinaan dan Penempatan Tenaga Kerja) at the Ministry of Manpower office or to the Head of the BKPM at the BKPM office. The application for each foreign national must include the following items:
- Color copy of passport (validity of passport must be at least 18 months from the date of arrival)
- Color copy of signed curriculum vitae (résumé)
- Color copy of Certificate of Education in English, signed by the expatriate
- Color copy of Certificate of Competency in English
- Color copy of reference letter from previous employer
- Color copy of medical or health or life insurance certificate in the expatriate’s name
- Copy of domicile letter from the building management or landlord of the proposed residence address in Indonesia
- Soft copy of recent color photographs with red background
For the renewal of a work permit, the following documents are also required:
- Color copy of Tax Registration Number (Nomor Pokok Wajib Pajak or NPWP)
- Color copy of National Social Security Program registration certificate (Badan Penyelenggaraan Jaminan Sosial Ketenagakerjaan, or BPJS) from both the employer and the employee
The application must also include the following documents for dependents (if any):
- Color copy of passport (validity of passport must be at least 18 months from the date of arrival), including blank pages
- Color copy of marriage certificate in English (for spouse)
- Color copy of birth certificate in English (for children)
- Soft copy of recent color photographs with red background
On approval of the application, copies of all required documentation for a work permit application are forwarded to the Kemenaker or BKPM. For each new application and renewal, the employer must pay in advance the Skill Development Fund levy of USD100 per month or USD1,200 per year before the work permit (Izin Mempekerjakan Tenaga Asing, or IMTA) can be approved. The Kemenaker or BKPM then issues the work permit.
The IMTA is the basis for the Directorate General of Immigration’s limited-stay visa (VisaTinggal Terbatas, orVTT) recommendation.
The expatriate must identify an Indonesian embassy or consulate abroad where the VTT may be collected. The Indonesian embassy in Singapore is commonly used for this purpose. The Direc torate General of Immigration informs the overseas embassy by telex when clearance is given for the issuance of the VTT. It is recommended that the expatriate bring a copy of the telex to the embassy with the request for the VTT.
Within 30 days after entering Indonesia, the holder of the VTT and all family members must report personally to the District Immigration Office of the district where the applicant resides to obtain limited-stay permit cards (Elektronik Kartu Izin Tinggal Terbatas, or E-KITAS; see Section H). Fingerprinting and a photo session are required.
The E-KITAS holder is granted a multiple re-entry permit, which is valid for 12 months.
The expatriate and all of his or her family members must register with the regional police office after the E-KITAS card and work permit are issued, to obtain a Police Report Certificate (Surat Tanda Melapor or STM).
On the expiration of the work permit and the final exit from Indonesia, a final exit permit, known as the Return on Immigration Document (RID), is required. The RID is valid for seven calendar days after the submission date.
Self-employment. Only Indonesian citizens may conduct business in Indonesia as self-employed persons. Citizens of other countries must obtain the sponsorship of employers in Indonesia.
A residence visa, known as a limited-stay visa (Visa Tinggal Terbatas, or VTT; see Section G) is valid for a period of 30 days on arrival. It is issued exclusively to expatriates who are working in accordance with the prevailing government regulations.
Expatriates working in Indonesia on work permits must obtain a residence card, called a limited-stay permit card (Elektronik Kartu Izin Tinggal Terbatas, or E-KITAS) and other relevant stay permits. They should apply for the E-KITAS within the 30-day period mentioned above.
A VTT, E-KITAS and other stay permits may also be applied for by dependents who accompany the expatriates to reside in Indonesia.
An E-KITAS is renewable up to five times. Each extension is valid for one year.
Family and personal considerations
Family members. A foreign national possessing an E-KITAS and IMTA may apply for his or her spouse and children to reside in Indonesia if they fulfill the necessary requirements. A copy of the marriage certificate and a complete copy of the passport are required for the spouse, and birth certificates and complete copies of the passports are required for the children. In addition, the spouse and children must register at the local immigration office for E-KITAS cards. The entire family must also register with the police.
The spouse of a foreign national who wishes to work in Indonesia must obtain a separate work permit.
Driver’s permits. Foreign nationals may not drive legally in Indonesia using their home country driver’s licenses. Inter national driver’s licenses are acceptable. Indonesia provides no driver’s license reciprocity with other countries.
To obtain an Indonesian driver’s license, foreign nationals must take a written and a physical exam. Photocopies of the passport and E-KITAS card must be attached to the driver’s license application.
In view of the driving conditions and commuting time, it is recommended that foreign nationals hire Indonesian drivers. The base salary for drivers is about USD170 per month.