Investor KITAS vs. Working KITAS: Key Differences in Rights and Responsibilities
Investor KITAS vs Working KITAS: Key Differences, Rights, and Responsibilities
Indonesia offers various types of temporary stay permits (KITAS — Kartu Izin Tinggal Terbatas) depending on the purpose of your stay: from family reunification to investment and employment. Among the most common types are the Investor KITAS and Working KITAS. Despite often being confused, they differ significantly in legal basis, taxation, and work entitlements.
In this article, we’ll break down the differences between Investor KITAS and Working KITAS, their requirements, and which type of permit is best suited based on your goals in Indonesia.
Overview: What Is a KITAS?
KITAS is a limited-term residence permit issued by the Directorate General of Immigration (Ditjen Imigrasi) under the Ministry of Law and Human Rights. It is mandatory for all foreigners who intend to stay in Indonesia long-term for specific purposes such as employment, business, education, investment, or family reunification.
Investor KITAS — Temporary Stay Permit for Investors
Purpose and Legal Framework
The Investor KITAS is intended for foreign nationals who are shareholders or co-founders of companies with foreign direct investment (PMA — Penanaman Modal Asing) in Indonesia. This permit is not for salaried work but rather to legalize the investor’s stay while managing or owning a business in the country.
Under current Indonesian regulations (including the updated PerMenkumHAM No. 22 of 2023), holders of this KITAS are exempt from obtaining a separate work visa, provided certain conditions are met.
Rights and Benefits
- Eligibility to hold official positions in their own company — such as Director or Commissioner.
- Right to reside in Indonesia for up to 2 years, with renewal options.
- Exemption from obtaining an employment permit (IMTA), provided the investor does not receive a salary.
Key Requirements for Obtaining an Investor KITAS (as of end-2025)
- A minimum personal investment of IDR 10 billion (approx. USD 630,000) in a PMA company.
- The investor must be listed as a shareholder or founder in official company records.
- The company must be a registered legal PMA entity in Indonesia.
Taxes and Legal Obligations
- Registration with the Indonesian tax office and obtaining a Taxpayer Identification Number (NPWP).
- Declaration of income (e.g., dividends), taxed under individual income tax regulations (PPh Orang Pribadi).
- In case of earning active income (salary), a separate work permit (e.g., Working KITAS 312) is required.
Working KITAS — Temporary Stay Permit for Employees
Purpose and Legal Regulation
The Working KITAS (visa index 312) is used to legalize long-term stay for foreign professionals officially employed by Indonesian companies. The visa is only issued if there is a foreign manpower employment plan (RPTKA) approved by the Ministry and an electronic work permit through the OSS-RBA system (which replaced the former IMTA process).
Rights and Responsibilities of Working KITAS Holders
- Right to be officially employed in a designated position within a specified company.
- Employment is limited to the employer named in the permit.
- Validity of up to 1 year, renewable.
- The employer is responsible for tax reporting and compliance with the approved RPTKA.
Tax Obligations
- Registration for a Taxpayer Identification Number (NPWP).
- Monthly income tax (PPh 21) withheld by the employer from salary payments.
Restrictions
- Holders cannot own a business (PMA company) or operate as a sole proprietor.
- Work rights are limited to the designated role and cannot be transferred to another employer without re-application.
- Certain job positions (e.g., domestic or administrative roles) are prohibited for foreigners.
Investor KITAS vs. Working KITAS: A Comparison
| Criteria | Investor KITAS | Working KITAS |
|---|---|---|
| Purpose | Investment and business management (PMA) | Formal employment in an Indonesian company |
| Work Permit Required | Not required (for passive income only) | Mandatory registration via OSS-RBA (IMTA equivalent) |
| Maximum Validity | 1 or 2 years | 12 months |
| Income Eligibility | Dividends and passive income allowed; salary requires separate permit | Salaried income under an employment contract |
| Company Role | Executive positions in own company | Restricted to designated role under hiring company |
| Tax Obligations | NPWP, annual filing, tax on investment income | NPWP, monthly PPh 21 tax |
How to Choose the Right Type of KITAS?
Your choice between an Investor KITAS and a Working KITAS depends on your intended activities in Indonesia:
- If you plan to invest and establish a foreign-owned company (PMA), and want legal residency as a co-owner — Investor KITAS is appropriate.
- If you’ve received a formal job offer from an Indonesian employer and don’t intend to run a business — Working KITAS through your employer is the way to go.
Note: A hybrid model — acting as both investor and employee — is possible only with the proper combination of permits and strict compliance with Indonesian labor and tax laws.
Frequently Asked Questions (FAQ)
Can I work on an Investor KITAS?
Not if you intend to receive a salary. You may manage the company as a founder or shareholder, but for salaried employment, a separate work permit is required.
Do I need a work visa if I'm a shareholder in a PMA?
A work visa is required if you perform regular work activities, especially when remuneration is involved.
Can I switch from a Working KITAS to an Investor KITAS?
Yes, but you must register as an investor, meet the minimum capital requirement, and apply for a change of stay status.
What are the risks of choosing the wrong type of KITAS?
Violating visa conditions (e.g., working without authorization) may result in fines, permit cancellation, and deportation.
Conclusion
Investor KITAS and Working KITAS represent two distinct pathways for temporary stay in Indonesia, each with its own legally defined rights and obligations. The former suits those running or investing in a company, while the latter is designed for foreign professionals hired by Indonesian businesses.
It is essential to consider the legal, tax, and operational implications of each visa type. Staying compliant with current law, accurately registering for NPWP, and submitting tax filings will ensure your stay remains lawful and potentially open the door to long-term residency.
Article current as of December 2025. Based on regulations from Direktorat Imigrasi and BKPM as of Q4 2025.
