Question 1

What entry rights and short-stay conditions apply to foreign nationals in Indonesia?

Accepted Answer

Under Presidential Regulation No. 95 of 2024, in force since 29 August 2024 and replacing Presidential Regulation No. 21 of 2016, Indonesia operates a selective visa-exemption regime known as Bebas Visa Kunjungan (Index A1). The official list maintained by the Directorate General of Immigration currently comprises 16 countries plus certain Singapore permanent residents, for a total of 17 entries: Brunei, Malaysia, Thailand, Vietnam, the Philippines, Cambodia, Singapore, Myanmar, Laos, Timor Leste, Suriname, Colombia, Hong Kong, Turkey, Brazil, and Peru, plus foreign nationals holding Singapore permanent residence who enter through designated immigration checkpoints. The A1 facility allows a maximum stay of 30 days, is strictly non-extendable, and cannot be converted into another stay permit. It covers tourism, business meetings, family visits, conventions and exhibitions, short-term medical treatment, and transit.

The broader framework was consolidated under Minister of Immigration and Corrections Decree No. M.IP-08.GR.01.01 of 2025, effective 2 June 2025, which reduced visa indices from 133 to 110 across Visit Stay Visas and Temporary Stay Visas. Citizens of 97 listed countries, including the United States, the United Kingdom, all European Union and Schengen member states, Canada, Australia, New Zealand, Japan, South Korea, the United Arab Emirates, Saudi Arabia, and several Latin American countries, are eligible for the Visa on Arrival (Index B1). The B1 costs IDR 500,000, grants an initial stay of 30 days, and may be extended once for a further 30 days for a maximum of 60 days. Pre-arrival electronic Visa on Arrival is applied for through the unified official portal evisa.imigrasi.go.id, which replaced the former molina.imigrasi.go.id system.

Foreign nationals who qualify for neither visa exemption nor Visa on Arrival generally apply in advance for a single-entry visit visa, typically the C1 for tourism and general visits, which grants an initial 60 days extendable to a maximum of 180 days, or another C-category visa according to the intended activity. Nationals of countries on the current Calling Visa list, namely Afghanistan, Israel, North Korea, Liberia, Nigeria, and Somalia, are not banned but are subject to a special pre-clearance procedure rather than ordinary Visa on Arrival or visa-exemption processing.

Short-stay entry under visa exemption, Visa on Arrival, or a visit visa does not authorize local employment, operational work for Indonesian entities, the sale of goods or services in Indonesia, or the receipt of wages or other remuneration from Indonesian individuals or companies. Business meetings, participation in conferences and exhibitions, site visits, discussions, negotiations, and in certain cases the signing of business agreements are permitted under the relevant visitor category, but revenue-generating services to Indonesian clients require an appropriate stay permit and work authorization.

Question 2

What long-term residence options exist in Indonesia for internationally mobile individuals?

Accepted Answer

Indonesia operates a Limited Stay Permit (Izin Tinggal Terbatas or KITAS) framework under Minister of Immigration and Corrections Decree No. M.IP-08.GR.01.01 of 2025. Employment-based residence is the Work KITAS (Index E23, 6 months to 2 years renewable) sponsored by an Indonesian limited company (PT) or foreign investment company (PT PMA) holding a valid Foreign Worker Utilization Plan (RPTKA), with the employer paying the Foreign Worker Compensation Fund (DKP-TKA) of approximately USD 1,200 per worker per year. Investment-based residence is the Investor KITAS (Index E28A) requiring minimum personal shareholding of IDR 10,000,000,000 in a PT PMA registered under personal name, with the holder occupying a Director or Commissioner role. The Investor KITAS is valid 1 or 2 years, renewable up to 6 years total, exempt from the Foreign Worker Compensation Fund, and does not require a separate Work Permit. Conversion to permanent residence (Izin Tinggal Tetap or ITAP) becomes available to investors after at least 3 consecutive years of continuous residence, subject to immigration approval and a signed integration declaration.

Two Golden Visa tracks under Minister of Law and Human Rights Regulation No. 11 of 2024 expand the investor framework. The Individual Passive Investor Golden Visa (Index E28C) requires at least USD 350,000 held in Indonesian government bonds, publicly listed company shares, or regulated mutual funds for a 5-year permit, or at least USD 700,000 for 10 years, with the 10-year tier alternatively satisfied by ownership of an apartment worth at least USD 1,000,000. Proof of ownership of the qualifying assets is required, and the permit is extendable and convertible to other limited stay permits. The Individual Establishing Company Golden Visa (Index E28B) requires the applicant to commit to establishing an Indonesian company with placed capital or investment of at least USD 2,500,000 for a 5-year permit or USD 5,000,000 for 10 years, to be fulfilled within 90 days of entry. Family members including spouse and minor children under 18 qualify for dependent permits under Index E31 codes without a separate qualifying investment. The path to permanent residence follows the same rule of at least 3 consecutive years of continuous residence. The Nusantara Capital Investor Golden Visa (Index E28F) targets foreign nationals serving as director or commissioner of a company established in the new capital (Ibu Kota Nusantara or IKN) in East Kalimantan that is a branch or subsidiary of a foreign company, requiring a foreign company investment commitment of USD 5,000,000 for a 5-year permit or USD 10,000,000 for 10 years, to be fulfilled within 90 days of entry.

Lifestyle, retirement, and remote work pathways complement the investor tracks. The Second Home Visa (Index E33) provides an initial permit of up to 5 years, extendable to a maximum of 10 years total, with a commitment to keep at least USD 130,000 in an account at a state-owned Indonesian bank or to own an apartment worth at least USD 1,000,000, the deposit or property to be evidenced within 90 days of entry and maintained throughout the permit. The Remote Worker Visa (Index E33G) launched in April 2024 grants an initial 1-year limited stay with multiple-entry privileges to digital nomads employed by foreign companies and is extendable online, requiring minimum annual foreign-source income of USD 60,000 and a USD 2,000 personal bank balance over the prior 3 months. Freelancers without a formal foreign employment contract are excluded. The one-year Retirement Second Home Visa (Index E33F) requires a sponsor and proof of income or allowance of at least USD 3,000 per month, is extendable online, and carries no separate qualifying investment. The Silver Hair Visa (Index E33E) under the Golden Visa framework applies to foreign nationals aged 55 and over, requiring a deposit of at least USD 50,000 in an account at a state-owned bank to be evidenced within 90 days, alongside proof of income or allowance of at least USD 3,000 per month, for an initial 5-year stay extendable to a maximum of 10 years. Path to citizenship is exceptional, discretionary, and effectively closed to dual nationals. The Global Citizen of Indonesia program launched on 26 January 2026 grants an indefinite permanent residence permit to former Indonesian citizens, their descendants up to the second degree, legal spouses of Indonesian citizens, and children of mixed marriages, without changing the holder's original nationality, positioned as a response to Indonesia's non-recognition of adult dual citizenship and comparable to India's Overseas Citizenship model.

Question 3

How does taxation apply to residents and foreign-source income in Indonesia?

Accepted Answer

Indonesia operates a residence-based taxation system. Tax residency is triggered when an individual stays more than 183 days in any 12-month period or holds intent to reside, typically evidenced by a Limited Stay Permit. Resident companies and individuals are taxed on worldwide income, with foreign tax credits available under 71 active bilateral double taxation agreements. The standard corporate income tax (CIT) rate is 22 percent post Harmonization of Tax Regulations (HPP) Law No. 7 of 2021, with a reduced 19 percent rate applicable to public companies with at least 40 percent free float on the Indonesia Stock Exchange. A 0.5 percent Final Tax on gross revenue applies to small businesses with annual turnover below IDR 4,800,000,000 under Government Regulation (PP) No. 23 of 2018 as amended by PP No. 55 of 2022, available for a maximum of 7 tax years for individuals, 4 years for cooperatives, limited partnerships and firms, and 3 years for limited liability companies. The Omnibus Law No. 11 of 2020 introduced a conditional exemption for foreign-source dividends, foreign permanent establishment (PE) income, and active non-PE foreign income earned by resident companies if reinvested in Indonesia for at least 3 years, moving the corporate framework from pure worldwide to residence-based with structural carve-outs.

Several concessional corporate regimes apply to qualifying investments. The Tax Holiday for Pioneer Industries under Minister of Finance Regulation (PMK) No. 130 of 2020 as amended by PMK No. 69 of 2024 grants 50 percent CIT reduction for investments between IDR 100 and 500 billion for 5 years, or 100 percent CIT reduction for investments above IDR 500 billion for 5 to 20 years, across 18 designated pioneer industries including pharmaceuticals, electric vehicles, renewable energy, data centers, petrochemicals, and metal smelting. The PMK No. 69 of 2024 application window closed on 31 December 2025, and any successor framework extending it into 2026 remains unconfirmed absent a new official regulation. The Nusantara Capital City (IKN) Tax Incentives under PP No. 12 of 2023 and PMK No. 28 of 2024 extend up to 100 percent CIT reduction for 10 to 30 years to investments of at least IDR 10 billion in the new capital city, with dedicated tracks for the Financial Centre (85 to 100 percent CIT reduction for 20 to 25 years) and headquarters relocation (100 percent for 10 years plus 50 percent for the next 10). The Special Economic Zones (KEK) regime under PP No. 40 of 2021 and PMK No. 237 of 2020 as amended by PMK No. 33 of 2021 covers 24 designated zones including Batam, Mandalika, and Nongsa Digital Park, granting a 100 percent CIT reduction for 10 to 20 years to investments of at least IDR 100 billion, with reduced facilities for smaller qualifying investments. The Tax Allowance under PP No. 78 of 2019 grants a 30 percent net income reduction over 6 years, accelerated depreciation, a reduced 10 percent dividend withholding tax, and extended 10-year loss carry-forward across 183 priority business sectors. All corporate holidays are subject to the Pillar Two Qualified Domestic Minimum Top-Up Tax under PMK No. 136 of 2024 effective 1 January 2025, listed in the OECD Central Record with transitional qualified status as at 18 August 2025, capping the benefit at a 15 percent effective tax rate floor for multinational groups with consolidated revenue above EUR 750 million.

Individual income tax follows progressive brackets post HPP Law: 5 percent up to IDR 60,000,000 of taxable income, 15 percent up to IDR 250,000,000, 25 percent up to IDR 500,000,000, 30 percent up to IDR 5,000,000,000, and 35 percent above IDR 5 billion. Foreign nationals with qualifying expertise under Article 4 paragraph 1a of the Income Tax Law can opt for the 4-Year Territorial Tax Exemption, taxing them only on Indonesian-source income for the first 4 fiscal years from the time they become an Indonesian domestic tax subject, subject to Directorate General of Taxes approval and provided they do not instead rely on an applicable tax treaty. The implementing rules previously sat in PMK No. 18 of 2021 and were partly consolidated into the PMK No. 81 of 2024 framework from 1 January 2025, as subsequently amended, with eligible positions defined as technical and scientific roles evidenced by a certificate, qualification, or at least 5 years of experience. Capital gains on unlisted Indonesian shares depend on the seller status. Resident sellers are taxed under ordinary income tax rules, the corporate rate for companies and Article 17 progressive rates for individuals. Non-resident sellers face a 20 percent Article 26 withholding tax on a deemed net gain set at 25 percent of the sale price, an effective 5 percent of proceeds, reducible under an applicable tax treaty. Gains on listed Indonesian shares are taxed at 0.1 percent of transaction value as a final tax. Inheritance is not subject to individual income tax but real property transfers trigger acquisition duties. Wealth tax does not exist. The VAT statutory rate was raised to 12 percent on 1 January 2025 under PMK No. 131 of 2024 issued on 31 December 2024, but effective application of the 12 percent rate is limited to luxury goods such as luxury residences valued above IDR 30 billion, private jets, yachts, hot air balloons, gliders, private firearms, and luxury motor vehicles subject to Luxury Goods Sales Tax. For all other goods and services, the effective VAT rate remains 11 percent through an adjusted 11/12 tax base mechanism, preserving the pre-2025 burden on essential consumption. Dividends paid to non-residents are subject to 20 percent default withholding tax, reducible to 10 to 15 percent under tax treaties.

Question 4

Can foreign residents open bank accounts and deploy capital in Indonesia without friction?

Accepted Answer

Banking is regulated by Otoritas Jasa Keuangan (OJK), Indonesia's Financial Services Authority established under Law No. 21 of 2011, which took over banking supervision from Bank Indonesia at the end of 2013 and whose mandate was later reinforced by the Financial Sector Development and Strengthening Law (P2SK Law No. 4 of 2023). Bank Indonesia (BI), the central bank, retains monetary policy, payment system oversight, macro-prudential supervision, and foreign exchange regulation. The market counts around 105 commercial banks as of mid-2025, with the four state-owned banks (Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Mandiri, and Bank Tabungan Negara) playing a central role in retail and government-linked banking, and the private Bank Central Asia (BCA) ranking as the leading private bank. Account opening for holders of a limited stay permit (KITAS) is generally feasible and often completed within a few business days depending on the bank and branch, with banks commonly requesting a passport, a valid residence permit, residential address details, a Nomor Pokok Wajib Pajak (NPWP) tax identification number, and an initial deposit that varies by bank and account type and frequently falls in the IDR 500,000 to 1,000,000 range. Source of funds checks are applied on a risk-based basis through customer due diligence rather than a single universal threshold, while cash transactions of at least IDR 500,000,000 in one business day must be reported to the financial intelligence unit Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK) under Law No. 8 of 2010. Indonesia became a full member of the Financial Action Task Force (FATF) in October 2023 and is not listed on the FATF grey or black lists.

Indonesia operates a Foreign Account Tax Compliance Act framework with the United States through an intergovernmental agreement, and separately participates in the Common Reporting Standard for automatic exchange of financial account information with partner jurisdictions including European Union member states, the United Kingdom, Singapore, and Australia. Domestic financial transactions must be conducted in IDR under Bank Indonesia Regulation 17/3/PBI/2015 effective July 2015, with limited exceptions for activities such as export and import settlement and interbank foreign currency transactions. Foreign currency cash purchases against the rupiah without underlying transaction documents are capped at USD 50,000 per party per month since 1 April 2026 under Board of Governors Regulation (PADG No. 7 of 2026), a threshold scheduled to be lowered further to USD 25,000 from June 2026. Deposit insurance through Lembaga Penjamin Simpanan (LPS) covers eligible deposits up to IDR 2,000,000,000 per depositor per bank. Foreign nationals with a valid stay permit can own a landed residence under a Hak Pakai (Right to Use) title and an apartment unit under a strata title Hak Pakai certificate (Sertifikat Hak Pakai atas Satuan Rumah Susun), subject to minimum value thresholds set regionally such as IDR 5,000,000,000 in Jakarta, while Hak Guna Bangunan (Right to Build) is available to foreign interests only through an Indonesian foreign-owned company (PT PMA) and Hak Milik freehold remains reserved to Indonesian citizens. Agricultural land ownership is prohibited for foreigners. Crypto asset supervision was transferred from the Commodity Futures Trading Regulatory Agency (Bappebti) to OJK and BI effective 10 January 2025 under Government Regulation No. 49 of 2024 and OJK Regulation No. 27 of 2024, with a transition period running to 10 January 2027 during which legacy Bappebti licences remain valid. Foreign investment in Indonesian listed securities is permitted through the Indonesia Stock Exchange via OJK-licensed local brokers, subject to sector-specific foreign ownership limits set under the Positive Investment List (Presidential Regulation No. 10 of 2021 as amended by No. 49 of 2021), with the banking sector cap at 99 percent.

Question 5

Is Indonesia a viable operational base for foreign professionals?

Accepted Answer

Indonesia offers heterogeneous operational quality depending on location. Jakarta is the dominant business hub, with a city and province population of around 11 million inside the much larger Jabodetabek metropolitan region of roughly 32 million, the broader urban agglomeration approaching 42 million on 2025 estimates. Fixed broadband is adequate rather than exceptional by advanced Asian standards, with leading fixed providers in the 35 to 50 Mbps range, while mobile performance sits in roughly the 40 to 50 Mbps range, among the slower ASEAN markets though improving year on year, with strong 4G coverage in populated areas and expanding 5G in major urban zones. Soekarno-Hatta International Airport (CGK) is the main international gateway, with around 90 non-stop passenger destinations across roughly 24 countries, including direct links to Singapore, Hong Kong, Dubai, Tokyo and Amsterdam, the last being the only non-stop European route and the longest at close to 15 hours. There are no direct services to North America, which is reachable only on one-stop routings through Tokyo, Seoul or Gulf hubs. Bali, served by Ngurah Rai International Airport (DPS) in Denpasar, is the secondary international hub with around 66 non-stop destinations, and remains one of Southeast Asia's densest digital-nomad ecosystems, especially in Canggu, Seminyak and Ubud, where fiber internet and coworking capacity are generally sufficient for remote work though reliability stays property-specific. Bahasa Indonesia is the official language, with English common in business and tourism settings in Jakarta and Bali but limited in provincial cities and rural areas.

Cost of living in 2026 reflects strong regional divergence. In Jakarta, a standard city-centre one-bedroom apartment runs roughly USD 350 to 600 per month, while premium expat-grade and serviced units in central business districts such as Kuningan and Sudirman move into the USD 800 to 1,500 range depending on building quality and lease terms. Mid-range restaurant meals sit around USD 5 to 12 and local transport is inexpensive, though daily comfort depends more on traffic and ride-hailing than on transit cost. Bali's Canggu and Seminyak zones command materially higher lifestyle pricing than most of the country, with two-bedroom villas commonly between USD 1,200 and 3,000 per month in mid-range to premium long-stay inventory, monthly scooter rental near USD 80, and restaurant meals around USD 6 to 15. Healthcare is bifurcated between international-standard private hospitals in Jakarta and Bali, where specialist consultations run roughly USD 50 to 200, and materially weaker public and provincial provision outside Java. Foreign residents should carry international health insurance covering serious treatment, hospitalisation and medical evacuation.

Security is generally manageable for foreign professionals in Jakarta and Bali, but the risk profile is not negligible. Petty crime and scams concentrate in tourist zones, while official travel advisories continue to flag terrorism nationwide, with authorities periodically disrupting planned attacks, alongside frequent demonstrations and a do-not-travel designation for Central Papua and Highland Papua due to armed separatist conflict. Natural-hazard exposure is structural because the country sits on the Pacific Ring of Fire, with recurring earthquakes, tsunamis, volcanic eruptions including Mount Merapi and Mount Agung, flooding and landslides, intensified during the monsoon period that runs broadly from November to March. Political continuity has held since the inauguration of President Prabowo Subianto on 20 October 2024, but investors should price in regulatory volatility across tax incentives, immigration rules and foreign-exchange measures. The most relevant of these is not a blanket capital control but a sector-specific retention regime under Government Regulation 8 of 2025, effective March 2025, requiring natural-resource exporters in mining outside oil and gas, plantation, forestry and fisheries to keep 100 percent of export proceeds onshore for 12 months.

Indonesia

Lucky Nomads Proprietary Indices

Country snapshot

General facts

Tax system

Special tax regimes

Visa and mobility

Your access

Overview

Programmes

Residence by investment

Business founder routes

Work (employer sponsored)

Talent (outstanding)

Retirement routes

Family and dependant routes

Dimensions breakdown

Strongest dimensions

Weakest dimensions

FAQ

What entry rights and short-stay conditions apply to foreign nationals in Indonesia?

What long-term residence options exist in Indonesia for internationally mobile individuals?

How does taxation apply to residents and foreign-source income in Indonesia?

Can foreign residents open bank accounts and deploy capital in Indonesia without friction?

Is Indonesia a viable operational base for foreign professionals?

Lucky Nomads editorial note

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