Every year, millions of people visit Bali, fall in love with its warm climate, tropical paradise, rich culture, and local hospitality, and dream of staying here. In this article, we have already discussed how to obtain a temporary residence permit in Indonesia. Now, let's talk about residency and what is required if you want to stay in the country permanently and become a full-fledged citizen.
To legally stay in the country, have the ability to work, and earn income, you need this permit. The Temporary Residence Permit (ITAS) is issued to those who want to move to Indonesia under one of the following circumstances:
• For work-related reasons — those who want to work in Indonesia can apply for a Temporary Residence Permit, which also requires sponsorship from a local company (employer).
• Marriage — foreign citizens married to Indonesian citizens are eligible for the Temporary Residence Permit.
• Retirement — foreign citizens aged 55 and older with sufficient funds can move to Indonesia under a retirement visa.
• Dependent residence permit — this allows foreign citizens to join a relative and begin the immigration process in Indonesia.
• Business purposes — foreign citizens who want to register companies in Indonesia can apply for a Temporary Residence Permit.
The ITAS has a set duration and must be renewed before expiration if you wish to continue your stay in Indonesia. One of the advantages of obtaining the ITAS is that it can be converted to a Permanent Residence Permit (KITAP) after residing in Indonesia for three years.
The Permanent Residence Permit card in Indonesia, or KITAP, can be obtained after receiving the fourth ITAS. KITAP allows a foreigner to reside in Indonesia for an indefinite period. Special conditions apply to foreign investors interested in investing in Indonesia.
Those looking to reside in Indonesia based on permanent residency must meet the following requirements:
• Investors must hold the position of director in a company with the potential to become a shareholder by investing at least 1 billion IDR.
• Another option for investors is to own shares worth at least 10 billion IDR in a local company.
• Any foreign citizen who has obtained a temporary residence permit can convert it to a permanent one.
• A foreign national with at least one Indonesian citizen parent can also apply for permanent residency.
• The spouse of a permanent resident can also apply for the same status.
It is important to note that for foreign investors, a Temporary Residence Permit is first issued, and after fulfilling the above conditions, they can become permanent residents of Indonesia and qualify for citizenship.
If you intend to reside in Indonesia or have already been in the country for more than 183 days within any annual period, you are automatically considered a tax resident. Residents are required to pay income tax (PPH) on income earned both in the country and abroad. If you earn income in Indonesia, you are required to have a taxpayer identification number (NPWP); otherwise, the tax rate increases by 20 percent.
Additionally, having an NPWP allows you to:
• obtain a driver's license.
• purchase a car and real estate.
• open a bank account or credit card.
• make transfers from an Indonesian account to a foreign one.
It is commonly believed that it is impossible for a foreigner to obtain Indonesian citizenship, but this is not true. According to Article 9 of Law No. 12 of 2006 on Indonesian Citizenship, there are specific requirements for candidates. If these requirements are met, it is possible to apply for a new passport.
Let’s briefly outline these requirements:
1. The candidate must be at least 18 years old.
2. At the time of the citizenship application, the candidate must have resided in Indonesia for at least five consecutive years or a total of 10 years. Only ITAS and KITAP can be used as legal proof of residency.
3. The candidate must be physically and mentally healthy.
4. The candidate must speak Indonesian, know the Indonesian Constitution, and understand the basic principles of the state (Pancasila).
5. If the candidate has a criminal record in Indonesia, the sentence must not exceed one year.
6. Upon obtaining new citizenship, the candidate must renounce their original citizenship. Dual or second citizenship is not allowed in Indonesia.
7. The candidate must have a place of residence and be able to prove employment and income within the country.
8. The application requires paying a state fee.
As you can see, the requirements are fairly standard and achievable. However, it's important to remember that obtaining citizenship is a lengthy process involving significant bureaucracy. You need to obtain recommendations from the immigration service, provide a certificate from your country's embassy permitting the acquisition of new citizenship, gather a large number of documents, write around 20 handwritten applications, undergo medical examinations (including answering 500 questions in Indonesian), and pass a rigorous interview/exam in Indonesian, where your knowledge of the Constitution, Pancasila, the national anthem, the country’s history, and more will be tested.
All of these procedures, not including some we haven’t mentioned, can take up to a year and a half or longer. You will need strong motivation to complete all the steps and obtain the coveted passport.
Despite the seeming difficulties, we know many examples of people who have successfully obtained all the necessary documents and now live in Indonesia, building their businesses or careers. If you also want to open your business in Indonesia and need advice from a qualified specialist, our company is ready to assist you.
