Introduction
You might have heard the news of an American woman who had been deported from Bali due to promoting a lavish lifestyle and encouraging other foreign travellers to follow her steps to move to the island to work as a digital nomad, amidst the COVID-19 pandemic that has severely hit Bali’s tourism industry. Working and moving to Bali as a digital nomad is not something that is impossible. However, there are a few things that foreigners must know and consider before arriving on the paradise island.
1) Beware of dubious consulting agencies
If you reach out to one of these agencies, they will tell you that they can give you the two-year stay permit (KITAS). Little do you know that this type of KITAS is only available if you are an investor who owns shares of at least IDR 1 billion in value in a foreign-owned Indonesian company (PT PMA), and holding a position of Director or a Commissioner. It can only mean one thing—they put you as one of the shareholders and a Director / Commissioner in a PT PMA without your knowledge and the PT PMA may have 5-20 other such Directors and Commissioners.
What they do not tell you is that being a Director of a company bears a lot of responsibilities, namely complying with the tax and statutory requirements, and being in charge of the management of the company’s business. Failing to do so will result in severe penalties such as imprisonment and deportation.
2) Don’t be a digital nomad if you can’t afford a work permit
Moving to Bali as a digital nomad under the Social Visit Visa does not actually allow you to work and earn money per se. You must have a sponsoring company to apply for the Work Permit KITAS to be able to work legally in Indonesia and even then you can only work for the sponsoring company, not as a freelancer. There is no freelancer visa in Indonesia and if an agent is talking about this visa, please ask them to show the immigration regulation on this.
3) Ask for an English translation before signing any papers
In the event that you plan to do business in Bali and incorporate a PT PMA, ask the notary to translate the Deed of Incorporation and any other documents into English and review them thoroughly. Do not hesitate to ask questions if there is something that you do not yet understand. They might charge you some money for the translation but it is always better to be safe than sorry.
4) Comply with all the requirements
Once you have incorporated your company, there are tax and legal compliances that you must not fail to look into. Make sure you file your taxes regularly. Make sure that the company abides by the Indonesian company and manpower regulations. This article provides a more detailed explanation of post incorporation compliances.
5) Respect the local customs and values
Bali is famously known for its culture and traditions. Parading a free and easy lifestyle is said to fuel the growing resentment in Bali toward foreigners. The general impression among the Balinese appears to be that foreigners tended to treat the resort island as their playground for fun and financial gain, whilst showing ignorance of and disrespect toward Balinese customs and values. Remember the old saying, “When in Rome, do as the Romans do.”
Closing Thoughts: Moving to Bali
With assistance from the right consultant, moving to Bali as a digital nomad is achievable. Permitindo provides company incorporation and stay permit (KITAS) services to foreigners who plan to live and work in Bali legally. If you have any concerns that are not mentioned in this article, please reach out to us at anita@permitindo.com or by filling out the form below. We look forward to hearing from you.
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