Question 1

1. Can foreigner buy land in Indonesia?

Accepted Answer

Based on the Agrarian Law (UUPA) No. 5 Year 1960, Foreigner can purchase and own land in Indonesia.

This is however comes with a few conditions. The ownership right that can be utilized by foreign nationalities are ownership right of Hak Pakai and Hak Guna Bangunan. Foreign individuals may purchase their land under the Hak Pakai ownership, while a foreign owned Indonesian Legal Entity (PT PMA) may utilizes the Hak Guna Bangungan ownership. Additionally, foreigners may also hold a lease hold to a land in Indonesia

Leasing/Sub-leasing the land is possible under the mentioned ownership rights. However, the regulations that apply to each type of ownerships must be followed. For example: Land with Hak Pakai ownership right, may be leased by the owner (foreign nationality) to other parties but not exceeding the term of the Hak Pakai.

Question 2

2. Can Foreigner work in Indonesia?

Accepted Answer

Foreigner can legally work in Indonesia by registering for the respective kitas (stay permit) in Indonesia. There are two types of stay permit that allows foreigner to work in Indonesia, namely:
1.  Employment Kitas 
2.  Remote Worker Kitas
Employment Kitas must be registered for any foreigners who work at an Indonesian company in Indonesia. They must also be compliant with the regulation and be registered at the company Report to the Ministry of Manpower, BPJS Kesehatan, and BPJS Ketenagakerjaan.

On the other hand, Remote Worker Kitas is aimed to the digital nomads that already have an employment outside of Indonesia. To be eligible for this Kitas, the Remote Workers must have a minimum annual salary of $60,000.

Both Employment and Remote Worker Kitas may sponsor family members stay permit. This includes legally registered spouse and children.

Question 3

3. Can foreigner own a business in Indonesia?

Accepted Answer

Foreigner can own and run a business in Indonesia by setting up a PT PMA (foreign owned company) in Indonesia. However, the investment must meet the minimum of IDR 10 billion.

Key note on setting up a PT PMA
1.    Shareholders must be more than 1 person
2.    Shareholders can be all foreign nationals
3.    Director and Commissioner must be appointed in advance

Question 4

4. What happen if a foreigner overstays the Visit Stay Permit and/or Temporary Stay Permit (KITAS) in Indonesia?

Accepted Answer

Overstaying a Visit or Temporary stay permit does not mean that the foreigner will be immediately deported. The foreigner can still extend their stay permit and/or exit the country with no blacklist by paying the Overstay Penalty of IDR 1,000,000 per day.

Question 5

5. What types of work can a foreign national do in Indonesia?

Accepted Answer

Foreign nationals can only work in roles that correspond to their residence permit and work permit. They are not allowed to take up work outside the scope of their work permit.

The types of work that can be performed by foreign nationals in Indonesia can be seen in the Minister of Manpower Decree No. 228/2019, concerning Certain Positions That Can Be Occupied by Foreign Workers.

It is important to ensure that the work is in accordance with the type of permit held, and any work outside the scope may result in penalties.

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