KITAS OR BUSINESS VISA ?

“I am not an Athenian or a Greek, but a citizen of the world”. When Socrates uttered these imortal
words around 450 BC, residency matters were clearly much more straightforward. Perhaps, today
taking into account Greece’s financial troubles he would probably classify himself as a citizen of
the E.U. Similarily, when someone decides to live in Bali , one of the first tasks is to determine your
current situation and circumstances and then apply for the appropriate visa. You will be offered
many shortcuts and tricks to beat the system but I strongly advise against those options and to play
it straight. If you plan to spend many years in Indonesia it is surely worthwhile to take time to
understand the basic application process and familiarize yourself with the paperwork involved in
living and working in Indonesia, legally.

Having decided to live in Bali, and with a job lined up, the next step is to apply for a visa. I know of
many companies who tell their employees to get business visas as it is much easier and quicker.
They are correct in saying it is much easier and quicker but it is also illegal to work in Indonesia
under a business visa. A business visa is only applicable where someone is visiting or staying in the
country short term to conduct business such as sourcing products and services or arranging
contracts with manufacturers. If you are employed by an Indonesian company or an Indonesian
division of a foreign company and are based here long term, then a business visa is not suitable and
you need to apply for a KITAS (temporary stay visa) with work permit. There have been several
incidents over the years of people who were working illegally under business visas being detained,
deported and barred from Indonesia for a period of years.
The KITAS permits are valid for one year and are extendable in-country. To lodge an application
you will need to provide the following documents:
• Copy of your passport.
• Curriculum Vitae and references
• Copy of Acedemic qualifications
• Passport photographs with red backgrounds (21 x 4cm x 6cm, 8 x 3cm x 4cm, 6 x 2cm x
3cm ).

Additionally, you will need your employer to provide the following original paperwork.

• The company Deed (Akte Perusahaan)

• The company’s domicile doccuments (Domisili Perusahaan)
• The company’s tax number (NPWP)
• The company’s business license letter (SIUP)
• The company's registration number (TDP)
• Organisational chart
• Copy of employe contract between you and company
• Director’s identity card (KTP)
• Commissioner's identity card (KTP)
• Certificate of registration to the Department of Labor (UU no. 17, 1981)
• 20 company letter heads, signed by the company director, and sealed with the company
stamp.

It would be wise to check that your prospective employer actually has all these papers before
getting over excited about your career prospects.You must also give instruction as to which
Indonesian consulate abroad you wish to pick up your visa. Before a work permit can be issued the
applicant must pay the sum of 1,200 USD into a government bank account which is supposed to
fund training of professionals who will one day replace expat experts. This payment should be
made in person or at least you should accompany the agent when making this payment. There have
been many cases where unsuspecting applicants had their agents make this payment on their behalf
only to find out that the dodgy agents pocketed the monies leaving the clients with fake work
permits and thus liable to a prison sentence if detected.

Expect the whole application process to take up to a month after which time a fax will be sent to the
Indonesian consulate you nominated authorizing them to issue you with a Kitas. After entering
Indonesia you are allowed about 5 days (exact period will be on immigration stamp in your
passport) to report to Immigration office to validate your visa. Your agent will normally accompany
you on this visit and babysit you through the ensuing fingerprinting process.

On completion of the process you should have in your possession 4 original documents issued in
the following order. A KITAS - identity card, a Blue Book - immigration log book on which will be
logged any changes to your immigration status including changes of address, martial status,etc. a
work permit IKTA and a police certificate SKLD. You should bring your KITAS with you at all
times and remember you are allowed only to work for the company doccumented as your sponsor
and in the capacity listed on your KITAS and IKTA.

Once you are granted a KITAS you are obliged to get a personal tax number NPWP and file your
tax report at end of tax year. You are responsible for this process, not your employer. In many cases,
the employer undertakes to pay taxes on behalf of the employee, however you must be sure to
demand certificate of payment from your employer. There have been many documented cases
where the employee only discovered at the end of a contract that he/she owed a lot of money to the
taxman.

Once a KITAS is issued, you are not allowed to leave the country without an exit permit, there are a
few options here like single re-entry exit permit, multiple re-entry valid for 6 months or multiple re-
entry valid for twleve months. I would reccomend you have a valid permit at all times should you
need to travel abroad for emergencies. At the end of your KITAS period you have the option to
extend in-country. If you are not extending you must apply for a termination certificate EPO, this is
basically a guarantee to the government that you are not leaving with any “unfinished business”.
Overall, it would be advisable to memorise and understand the terms KITAS, IKTA, SKLD, KTP
and EPO as you will hear them over and over again.

If you have much time and patience, you can process the visa and workpermit yourself but be
prepared to spend many days waiting in Government offices. There are many agents “Biro Jasa”
offering visa processing services and though they appear to be selling similar products their prices
vary quite considerably. Shop around until you find an agent you are comfortable with and do not
not base your decision solely on price. Contacting an agent who gave you a great price and whose
office is on the back of a motorbike may be more challenging than communicating with an
established professional firm. A couple of practical questions to ask an agent before committing
would be:
1. How long they have been providing this service?
2. Can they introduce you to somebody who has been a client for years (original application
and extensions).

You should also visit their office and get familiar with the individual handling your application. It
may sound complicated and a hassle but frankly if you plan to live in Indonesia, it is definitely
worth the effort to get familiar with the process and then future extensions will be just a minor
formality. You also wont need to be looking over your shoulder and suffering from anxiety attacks
when you hear rumors of a “razia” or raid by the immigration officals, or end up like Socrates
“philosiphying” about weighty matters, - like why you didn’t go to the trouble of getting the correct
visa in the first place and avoiding the reprecussions.