Good afternoon. I have a foreign boss who plans to establish a foreign investment company that is 100% foreign capital and at the same time wants to become a director of the company. The problem is my boss, does not have a connection with an Indonesian Citizen so he cannot obtain a limited stay visa for foreign investment purposes, which as far as I know requires a guarantor from an Indonesian Citizen to obtain a limited stay visa. What should my boss do to fulfill his plan?
DAFTAR ISI
INTISARI JAWABAN
Every foreigner who enters Indonesia must have a legal and valid visa. So, what type of visa is required by Foreign Citizens who wish to conduct Foreign Investment in Indonesia? What are the requirements for obtaining such a visa?
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Definition and Legal Requirements of VITAS
Before answering your question, we should first understand what is meant by a visa. According to Article 1 number 15 Regulation of the Minister of Law and Human Rights 29/2021, a visa of the Republic of Indonesia, hereinafter referred to as a visa, is a written statement, either manually or electronically given by an authorized official to travel to the territory of Indonesia and become the basis for granting a residence permit.
Furthermore, basically, the Immigration Law regulates that every Foreign National or foreigner who enters Indonesian Territory is obligated to have a legal and valid visa unless otherwise stated under Immigration Law and international agreements.[1]
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In general, there are 4 (four) types of Indonesian visas regulated in the legislation, namely diplomatic visas, service visas, visitor visas, and temporary stay visas a.k.a limited stay visas (Visa Tinggal Terbatas/ “VITAS”).[2]
There are 2 (two) categories in granting types of limited stay visas to foreigners, namely as:[3]
as spiritualists (rohaniawan), experts, workers, researchers, students, investors, second homes, and their families, as well as Foreign Citizens legally married to Indonesian citizens, who will travel to the Indonesian Territory to reside for a limited period of time; or
in the framework of joining to work on ships, floating equipment, or installations operating in the archipelagic waters, the territorial sea, the continental shelf, and/or the Indonesian Exclusive Economic Zone.
Foreigners who enter the territory of Indonesia with VITAS are given an Entry Mark by an Immigration Officer at an Immigration Checkpoint.[4] The Entry Mark is valid as a Limited Stay Permit (Izin Tinggal Terbatas/ "ITAS") which is temporary for a period of 30 (thirty) days.[5] Limited Stay Permit is granted for a maximum period of:[6]
5 (five) years;
2 (two) years;
1 (one) year;
180 (one hundred and eighty) days; or
90 (ninety) days.
Limited Stay Visa for Foreign Investment
Furthermore, regarding Foreign Investment, it is included in the granting of a limited stay visa not for the purpose of working, as stipulated in Article 30 section (2) letter a Regulation of the Minister of Law and Human Rights 29/2021. Thus, Foreign Citizens of foreigners may obtain VITAS with the aim of investing in Indonesia.
Application for a limited stay visa not for the purpose of working for foreigners who conduct foreign investment is submitted by the foreigner concerned to the Immigration Officer at the Directorate General of Immigration through the Online Visa Approval application by attaching:[7]
proof of deposit of Immigration Guarantee;
legal and valid Nationality Passport:
at least 12 (twelve) months for those who will carry out work in the Indonesian Territory for a maximum period of 180 (one hundred eighty) days;
at least 18 (eighteen) months for those who will carry out work or stay in the Indonesian Territory for a maximum period of 1 (one) year; or
at least 30 (thirty) months for those who will work or stay in the Indonesian Territory for a maximum period of 2 (two) years;
proof of having living expenses for himself and/or his family while in the Indonesian Territory of at least US$2000 (two thousand American dollars) or equivalent;
proof of insurance ownership in an Indonesian incorporated insurance company that covers health financing while the Foreigner is in the territory of Indonesia;
a recent coloured photo with a size of 4 cm x 6 cm (four centimeters by six centimeters) with a white background of 2 (two) sheets; and
recommendation letter from the authorized agency in the field of investment.
Basically, Article 221 section (1) Regulation of the Minister of Law and Human Rights 29/2021 regulates that certain foreigners residing in the Indonesian Territory are obliged to have a guarantor who guarantees their existence. However, the provisions regarding guarantees do not apply to business actors with foreign citizenship who invest as their investment in Indonesia.[8] Nevertheless, foreigners in the context of investment must attach proof of immigration guarantee deposit as a substitute for a guarantee letter from the guarantor.[9]
In conclusion, to answer your question, for foreign investment purposes, foreigners can obtain VITAS by completing the document requirements mentioned above. In addition, the provisions regarding guarantors do not apply to foreigners who invest as their investment in Indonesia. However, as a substitute for a guarantee letter from the guarantor, foreigners are required to attach proof of immigration guarantee deposit.
These are the answers we can provide, we hope you will find them useful.