In Indonesia’s evolving investment environment, foreign professionals and entrepreneurs frequently encounter the terms KITAS and Investor KITAS. Both are central to establishing a compliant and efficient presence in the country, particularly for those looking to participate in long-term business activities.
Understanding the distinctions between these permits is essential for structuring operations, managing human resources, and ensuring regulatory adherence.
KITAS (Kartu Izin Tinggal Terbatas or Limited Stay Permit) is Indonesia’s core temporary residency authorization for foreigners who intend to remain in the country for an extended period. A KITAS is required for various categories of foreign nationals, including employees of Indonesian companies, spouses of Indonesian citizens, students, retirees, and investors.
For businesses, the most relevant category is the Work KITAS, which allows foreign talent to be legally employed in Indonesia. Obtaining this permit involves securing a work permit, fulfilling manpower regulations, and paying the government’s Foreign Worker Compensation Fund (DKP-TKA), which can be a significant cost consideration for employers.
The Investor KITAS, however, is a specialized variant designed specifically for foreign shareholders of a Foreign Investment Company (“PT PMA”). This permit reflects Indonesia’s strategic efforts to attract investment by streamlining residency and work permissions for bona fide investors.
Unlike the Work KITAS, the Investor KITAS does not require payment of the DKP-TKA fee, making it a cost-efficient solution for foreign directors or commissioners who hold equity in the company.
New investment rules in Indonesia have been reaffirmed through the issuance of Head of BKPM Regulation No. 5 of 2025, which clarifies capital standards for PT PMA. This regulation is designed to ensure that foreign investment aligns with national economic priorities and delivers long-term value.
Under these new investment rules in Indonesia, investors must comply with strict capital allocation guidelines per KBLI code and location. Under Head of BKPM Regulation No. 5 of 2025, the minimum total investment for a PT PMA is more than IDR 10 billion (excluding land and buildings) for each 5-digit KBLI code per project location.
Exceptions apply for specific sectors, which among others are:
The minimum paid-up capital has been reduced from the previous IDR 10 billion to IDR 2.5 billion per PT PMA.
The government sets these thresholds to ensure that PT PMA is aligned with development objectives: generating large-scale investment, creating jobs, enabling technology transfer, and strengthening domestic industrial competitiveness.
However, this reduction does not affect other related requirements, such as the capital threshold for obtaining an Investor KITAS.
Although the minimum paid-up capital for a PT PMA has been lowered to IDR 2.5 billion, the requirement to obtain an Investor KITAS remains set at IDR 10 billion.
This is affirmed under Minister of Law and Human Rights Regulation No. 22 of 2023 on Visas and Residence Permits as amended by Minister of Law and Human Rights Regulation No. 11 of 2024 and partially repealed by Minister of Law and Human Rights Regulation No. 3 of 2025, with the following provisions:
Accordingly, only investors with significant capital commitments are entitled to the privilege of long-term residence permits.
Investors with less than IDR 10 billion in capital who wish to stay in Indonesia may apply for a work permit under Minister of Manpower Regulation No. 8 of 2021.
They must pay the Foreign Worker Compensation Fund (DKP-TKA) of USD 100 per month (USD 1,200 per year), in addition to visa, residence permit, and PNBP fees.
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