Indonesia is a country with a growing economy, attracting a lot of foreign investors. If you’re interested in investing in Indonesia and setting up a company, you’ll need to know about KITAS and KITAP.
What is KITAS and KITAP?
KITAS is short for Kartu Izin Tinggal Terbatas, which means Limited Stay Permit. It’s a temporary residence permit for foreign nationals who will be staying in Indonesia for work or investment purposes.
KITAP stands for Kartu Izin Tinggal Tetap, which means Permanent Stay Permit. It’s a permanent residence permit for foreign nationals who have been living in Indonesia for a certain amount of time.
Why is KITAS or KITAP necessary?
In order to work or invest in Indonesia, foreign nationals need to have a KITAS or KITAP. This is a legal requirement from the government and failure to comply can result in hefty fines or deportation.
What are the requirements for KITAS or KITAP?
To obtain a KITAS, you will need sponsorship from a local company or individual in Indonesia, proof of employment or investment, and various documents such as a passport, certificate of health, and a police clearance certificate.
To obtain a KITAP, you will need to have a KITAS for a certain amount of time, usually five years, and meet various requirements such as holding a valid passport, not having a criminal record, and passing a medical examination.
What are the benefits of having KITAS or KITAP?
Having a KITAS or KITAP allows you to work, invest, and live in Indonesia legally. It also allows you to open a bank account, apply for loans, and get a driver’s license.
Additionally, KITAS and KITAP you have the freedom to enter and leave Indonesia for as long as the KITAS/ KITAP is valid. For KITAS holders, extension will happen every year or two years. While KITAP holders will only have to extend their KITAP in every five years.
Many foreigners who have lived in Indonesia for some time would like to participate in social, environment or education activities and established their own foundation (or yayasan). If you are a KITAP holder, then you have the opportunity to own and established a foundation in Indonesia.
Why is Indonesia a potential market for investment?
Indonesia is the fourth most populous country in the world, with a population of over 270 million people. It’s also the largest economy in Southeast Asia with a GDP of USD 1 billion in 2020.
Indonesia has a growing middle class, with millions of people moving out of poverty and into the middle class every year. This means there’s a huge potential market for investors who want to tap into this growing middle class.
What do you need to know about company setup and incorporation in Indonesia?
If you want to set up a company in Indonesia, you’ll need to have a local partner or a local shareholder. The company must also have a legal structure, such as a PT or Perseroan Terbatas, which is a limited liability company.
You’ll also need to obtain various licenses and permits from the government, such as a Business Identification Number (Nomor Induk Berusaha/NIB) and a Taxpayer Identification Number (Nomor Pokok Wajib Pajak/NPWP).
Conclusion
KITAS and KITAP are necessary for foreign investors who want to work, invest, and live in Indonesia legally. Indonesia is a potential market for investors due to its growing economy and middle class.
Setting up a company in Indonesia requires compliance with various laws and regulations, including obtaining licenses and permits from the government. It’s important to seek legal advice before starting any business in Indonesia.
Contact us today for more details:
WhatsApp: (+62) 859-3323-1567
Email: contact@lglbee.com
Commenti