To draw in more investments into Indonesia, the government issued a new law on 2nd February 2021, known as government regulation No. 48 of 2021 regarding the third amendment to government regulation No. 31 of 2013, regarding the implementation of regulation of law No. 6 of 2011 regarding immigration.
This is in conjunction with the enactment of law No. 11 of 2020 regarding job creation, otherwise known as the Omnibus Law. Most of the changes relate to foreigners and their visas under government regulation no. 48 of 2021.
Change in Validity of Limited Stay Permit
One of the biggest changes is how long a foreigner can stay on a Limited Stay Permit -an Izin Tinggal Terbatas or ITAS.
Prior to the changes, an ITAS was valid for a maximum of two years, with two possible extensions for two years each. After a maximum of six years, a new ITAS would need to be applied for.
The changes now mean that an ITAS can be obtained for up to five years. The permit can then be extended to give a total stay in Indonesia of up to ten years.
An ITAS for work that is valid for less than 90 days can be extended up to a maximum stay of 180 days.
Change in Validity Period of Visit Stay Permits
A visit stay permit, previously known as a “sosial budaya”, is a single-entry visit visa. These visas are now valid for a total of 180 days with no extension possible.
Before, this type of visa was valid for 60 days and could be extended whilst in the country four times, with a maximum stay of six months.
Further, visit stay permits that are multiple-entry visa visas will be granted 180 days and can be extended to allow for a total stay of no more than one year in the country.
Visa on arrival, which used to offer 30 days with an extension of a further 30 days has been changed. The new regulations state that the visa will be issued for 30 days with no extensions possible.
Introduction of Second Home Category
A new category of visa is being introduced that will allow foreigners to get a limited stay visa – Visa Tinggal Terbatas or VITAS. This visa is not for employment and is intended for people to use Indonesia as a second home.
Foreigners must have settled in Indonesia for five to ten years and fulfil certain requirements to qualify for this new visa category.
This category replaces retirement visas that were available under previous rules. Any visas issued already in the category will remain as a non-working VITAS in the second home category.
Additional Requirements to Obtain a VITAS
To be eligible for the VITAS outlined above, applicants have two new requirements to fulfil, namely:
- A letter of good standing from the relevant authorities or the embassy/consulate of the foreigner’s country of origin; and
- A health examination letter stating that the foreigner is free from any contagious disease that could endanger public health.
Pre-investment and Requirements for Obtaining a Visit Visa
There is a new category of single- and multiple-entry visas, which is pre-investment activities. This refers to a foreigner looking at starting a business, like completing field surveys or feasibility studies, for example.
A guarantee letter is no longer needed as long as the foreigner is able to leave a guarantee payment with immigration offices, which we’ll cover in a moment.
Depending on visas, guarantors are required during the stay of a foreigner and they’re responsible for reporting any change in immigration status or the address of the person guaranteed.
A guarantor isn’t needed for a foreigner who is legally married to an Indonesian, a foreign investor, or those from countries that don’t require a guarantor for Indonesians.
For foreign investors, those in Indonesia as a second home, and foreigners engaged in pre-investment activities can now make an official payment to a Directorate General of Immigration bank account that will be an immigration guarantee to replace the need for a guarantor.
This payment will cover repatriation in cases of deportation, overstay fees, and other outstanding immigration costs liable to the foreigner. If no funds are required to be used from the guarantee of payment, the money will be returned to the foreigner at the end of the stay permit.
Conversion of Stay Permits
Another important change in the regulation is that foreigners can now apply directly to change from a visit stay permit to a permanent stay permit – from ITAS to ITAP Prior to the changes, this request would need to have been made by the guarantor.