How to Obtain an Investor KITAP in Indonesia: Step-by-Step Guide

Indonesia offers foreign investors the opportunity to obtain a Permanent Stay Permit — KITAP (Kartu Izin Tinggal Tetap), making it one of the most attractive countries for long-term relocation in Southeast Asia. If you own shares in a PMA company (a foreign-owned legal entity in Indonesia), you may be eligible for an investor Stay Permit/KITAS, which can later lead to a KITAP.

This article provides a detailed breakdown of the path from establishing a company to acquiring permanent residency through investment, including the requirements for investors and key risks to consider in 2025.

What Is an Investor KITAP and Who Is Eligible?

The Investor KITAP is a type of permanent stay permit in Indonesia valid for five years, issued to foreign nationals investing in the country’s economy through participation in PMA companies. It eliminates the need for annual visa renewals, allows for permanent residence and work, business ownership, and tax residency status.

Main Differences Between KITAP and KITAS

• KITAS — a temporary stay permit (up to 2 years), requires annual renewal.
• KITAP — permanent residency (issued after 2 years on a KITAS), valid for 5 years with renewal options.
• With KITAP, you are not required to leave the country or renew your visa annually.
• You can open local bank accounts, own vehicles, register for a tax number, and earn income within Indonesia.

Who Can Apply for an Investor KITAP?

Applicant Requirements

• Must serve as a Director or Commissioner in an Indonesian PMA company.
• Minimum investment — 1 billion IDR (~63,000 USD) in paid-up capital.
• Must own at least a 5% stake in the company, verified through official registration documents.
• Must have held a valid investor KITAS for at least 2 consecutive years.

Important: All documents proving your investment and role in the company must be registered with the Ministry of Law and Human Rights and approved by BKPM (Indonesia Investment Coordinating Board).

Step-by-Step Process for Obtaining an Investor KITAP

Step 1: Register a PMA Company and Structure Your Investment

• Minimum authorized capital for a PMA company is 10 billion IDR (~630,000 USD).
• Your personal contribution must be at least 1 billion IDR (documented through shareholding).
• The management structure should include you, as a foreign shareholder, in the role of Director or Commissioner.
• Registration is completed through the OSS (Online Single Submission) system.

Tip: Engage a lawyer or corporate consultant during company setup to avoid mistakes that could affect your future visa eligibility.

Step 2: Obtain an Investor KITAS

Before applying for a KITAP, a foreign investor must legally reside in Indonesia under an investor KITAS for at least 2 uninterrupted years (per 2025 immigration regulations).

• KITAS is issued for 1 or 2 years via Cekal Online or with sponsorship from your company.
• Approval timelines can range from 2 to 6 weeks depending on the region.

Important: Breaching conditions or stepping down from your role as shareholder or director may result in your KITAS being revoked and make you ineligible for KITAP.

Step 3: Apply for an Investor KITAP

After two years with a KITAS, applicants can submit their KITAP application to the local immigration office.

Required Documents:

• Copy of your valid investor KITAS and passport.
• PMA company registration certificate and Articles of Association.
• Proof of capital ownership verified by the Ministry of Law (SK Menkumham).
• Investment registration decree from BKPM.
• Sponsorship letter from the company outlining your role and responsibilities.
• Proof of residence and a letter of good immigration standing.

Step 4: Review and Issuance of the KITAP

• After submitting documents, you must complete biometric registration at your local immigration office.
• Your application will be forwarded to the central immigration office in Jakarta.
• Processing time: between 30 and 60 working days.
• Upon approval, a plastic KITAP card valid for 5 years is issued.

Additional Administrative Requirements:

• SKTT (Surat Keterangan Tempat Tinggal) — mandatory registration of residential address with the municipal authority.
• NPWP — Indonesian personal taxpayer number (issued by the tax office).

Risks and Key Considerations for Investors

• The KITAP may be revoked if the PMA company is dissolved or its operations are found in violation.
• If your ownership falls below 5%, you may lose your eligibility for Permanent Residency/KITAP.
• All structural and management changes must be officially registered.

Common mistake: Some investors assume they can apply for a KITAP without completing a 2-year period on a KITAS. As of 2025, this is not permitted. The law requires 24 months of legal temporary residency before upgrading to KITAP.

Taxes and Obligations for Investor KITAP Holders in 2025

Once your Permanent Stay Permit is issued, you become an Indonesian tax resident if you stay in the country for more than 183 days per year.

Tax Responsibilities as a Resident:

• Register with the tax office and obtain an NPWP.
• File an annual tax return — SPT Tahunan.
• Report global income.

Current Personal Income Tax Rates in 2025:

• Up to 60 million IDR — 5%
• 60–250 million IDR — 15%
• 250–500 million IDR — 25%
• 500 million–5 billion IDR — 30%
• Over 5 billion IDR — 35%

Dividends and corporate profits are also subject to income tax (PPh 25/29), with a corporate income tax rate of 22% in 2025.

Do You Need a Middleman? Choosing a Reliable Agency and Avoiding Scams

Because the Investor KITAP process is complex and involves interaction with numerous authorities (BKPM, Ministry of Law, Immigration, and the Tax Office), many foreign investors opt to work with licensed visa agencies.

What Agencies Typically Offer:

• Consultations and legal due diligence for investments.
• Setup of PMA companies and assistance with corporate documents.
• Application filing and representation before government bodies.
• Document translation and assistance at immigration offices.

Things to Consider When Choosing an Agency:

• Verify that the consultant has a valid license.
• Check reviews and avoid working with anyone who guarantees results without a written contract.
• Be suspicious of promises like "KITAP in a month" without a KITAS — this is illegal.

Estimated agency service fees for 2025 start from 25 to 40 million IDR (approximately 1,600–2,500 USD), depending on location and service complexity.

Is It Worth Getting an Investor KITAP in Indonesia? Final Thoughts

The Investor KITAP is a great option for those planning to live and do business in Indonesia on a long-term basis. It offers legal stability, removes the hassle of annual renewals, and grants access to tax residency benefits.

However, it’s crucial to follow formal requirements carefully: ownership stake, company position, capital contribution, and lawful time on an investor KITAS. Without a comprehensive approach, the process can be delayed or rejected.

Before starting the process, make sure to:

• Ensure your company complies with BKPM and Ministry of Law requirements;
• Consult a licensed agent or lawyer;
• Allow a realistic timeline — typically 6 to 9 months.

By following best practices and legal guidelines, you can secure permanent residency and realize your investment goals in one of Asia's most promising regions.