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How to get a residence permit in Indonesia and legally live in Bali?

01.08.2023
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Russians have become the largest group of foreigners who have received a long-term visa to Bali in 2022; The Russian-speaking community on the hospitable Indonesian island is numerous and active, and those who want to join them and spend a couple of months, and sometimes years, there is no end to the ocean; Only in the 1st quarter of 2023, only slightly fewer visitors arrived from Russia than for the whole past year; What you need to get a local equivalent of a residence permit and legally live in Bali without fear of deportation, read our material.

Residence permit in Bali

We are going to Bali for 2 months or more. Visa on arrival

When it comes to tourism in Indonesia, first of all, we mean, of course, the sensational island of Bali, which receives millions of foreign visitors annually (7.4 million in 2022).

Citizens of many countries, including Russia, Ukraine, Belarus, for a short visit to Indonesia need to obtain a visa on arrival VoA (Visa on Arrival). It is issued at the airport, seaport or when crossing the land border.

VoA is granted for 30 days with the right to extend after another 30 days. Thus, a total of 60 days can be spent in Indonesia on this visa. It is used mainly by tourists, as well as those arriving on a business visit or for the purpose of transit.  

To re-receive a VoA, after 60 days, a visa is needed, that is, it will take at least a day (and preferably 2-3 days) fly abroad Indonesia. As a rule, Malaysia (Kuala Lumpur), Singapore or Thailand are chosen for these purposes.

For VoA registration, you will need:

  • passport that expires in at least six months,
  • medical insurance,
  • payment of duty $35,
  • return ticket (important point!),
  • confirmation of hotel reservation or other place of residence,
  • confirmation of the availability of money in the account,
  • completed questionnaire.

From 2024, a $10 fee will be added to this list, which will be levied on all arriving foreign tourists.

To extend the visa, you can contact the immigration office yourself. In this case, you will need three visits (to submit an application, submit biometrics and to obtain a ready-made permit). The second way is to use the agency's services. It will cost about $50 (the fee is $35 plus a small commission), but two visits will be enough. Another plus of the intermediary is the Russian-speaking employees who will explain the nuances.

Indonesia recently reintroduced visa-free entry for 30 days (without the right to extend) for citizens of 159 countries. But Russians, Ukrainians, Belarusians, Kazakhstanis are not included in this list, and they still need to apply for a VoA or other visa. 

Going to Bali for six months

For those who plan to stay in Bali for up to six months, there is a business visa: for a single visit B211 and for multiple entries - D212.

What can I do with a business visa? This visa does not imply doing business or employment. Its holders are only allowed to conduct business-talks, conduct business negotiations, consultations, attend conferences, interviews.

Last year, a type of business visa was introduced B211A – for tourist trips. This visa is considered the most suitable in terms of conditions for digital nomads – foreigners working remotely for a foreign company. There is no legally defined status for this category of people in Indonesia yet, so the remoters try not to spread about the sources of their income.  

B-211 and B211A allows you to stay in Indonesia for a total of 6 months, but every 2 months the permit must be passed through the immigration office. After 6 months, you can apply for a new visa for another six months, but for this you will need a "visa" for a day. A popular destination for crossing the border is Kuala Lumpur. Many people combine a trip with shopping, as there are pleasant prices for things in Malaysia. You can apply for this visa on the official website.

D212 is issued for a year, but every 60 days it will need to be renewed through a visa. You can apply for this visa at the Indonesian Consulate in your country or at the immigration office.

The cost of obtaining a business visa through the agency is $200-400, the cost of extension is $150. The requirements include the availability of a return ticket (important!) and proof of financial viability (from $2000 per person on the account).

moving to Bali

Going to Bali for 1-2 years and more

In order to settle on the island for a longer period, it is necessary to issue a local equivalent of a residence permit. Strictly speaking, it is not quite correct to apply the concept of a residence permit in Bali. It is more correct to say – permission for a long-term stay.

The most popular option of such a "long-lasting" visa is KITAS. It can be working, investor, family, pension and student. This is one of the most reliable ways to legally stay in Indonesia.

KITAS is issued for up to 2 years with the right to extend and opens the holder not only the opportunity to live in Bali and fly in and out without restrictions, but also a number of other preferences: the right to take a car, motorcycle or bike, get a local driver's license, open an account in an Indonesian bank without a local intermediary, rent land, as well as discounts on services in hospitals (up to 50%) and benefits when visiting attractions.

It is worth noting that for foreigners, even if they have a long-term visa, medicine and education in Indonesia are paid. Treatment in local clinics can cost a visitor a tidy sum, so it is important to take care of insurance in advance.

Having received KITAS, a person also becomes a tax resident of the country, which imposes certain obligations on him.  

A worker KITAS is issued for a foreigner by an employer (acts as a sponsor). If there is an offer from an Indonesian company, you can make KITAS while still in your country. This option is preferable, because it is more reliable and less costly. However, sometimes a person first comes to Bali on a business visa, looks for a job, goes for interviews, then the company that makes an offer of employment issues KITAS to its new employee. It will not be possible to switch to KITAS with a visa on arrival – only through an intermediate business visa.

To apply for a working KITAS, you will need a completed questionnaire, a copy of your passport, diploma, resume, and medical insurance policy. It is also advisable to add a letter of recommendation from a previous job to this. The employer will provide information about your planned income level.

All serious companies that employ expats take care of KITAS for their employees.

The cost of registration: $2200-2600. The company usually pays, but it happens that part of the costs fall on the employee himself.

Investor's KITAS, for one year or two years, with the right of extension, is issued to foreign citizens investing in foreign companies (PT PMA) in Indonesia.

A group of investors must invest at least 1 billion rupees ($66,525) in shares of a company with an authorized capital of at least 10 billion rupees ($665,250) and at least 25% of the paid-up capital. A company can become a sponsor of an investor visa for its founder or shareholder after it receives the statutory documents, tax number, permits and protects the investment project.

Many people are looking for a way to join a company established by someone as a shareholder and solve the issue of legalization in this way, but it is worth carefully choosing partners. Sometimes dummy companies that do not conduct real activities are opened specifically for the KITAS trade. The authorities periodically expose such enterprises and punish those who took advantage of an illegal loophole.   

Note that the investor KITAS does not give the right to work. The founder or shareholder of a company can be a director or a commission agent (observer) in it, but cannot work for it.

Not so long ago it became known that the Indonesian authorities are planning extend the terms of stay on this type of visa, but also tighten control over applicants. 

The cost of starting a company: about $3,500. The cost of maintaining the company, including virtual office rental: approximately $800 per year.

Family KITAS can be obtained by family members (spouse and children under 18) of holders of working and investment KITAS. It is granted for the same period as the permit for the main applicant.  

Pension KITAS is designed for people over 55 years old. It is issued for a year with the right to renew annually for 5 years. After this period, you can apply for KITAP – an analogue of permanent residence.

Pension KITAS in Indonesia presupposes financial security. It is necessary to have an income of $18,000 per year, get medical insurance and hire an au pair.

This type of visa is not granted to citizens of all countries. For Russians , heit is available, but not to residents of other states of the former USSR.

The cost of registration: about $1000.

bali visa

Going to Bali for 5-10 years or more

In the fall of 2022, a Second Home Visa appeared in Indonesia. The program is still "young", and there is little practice on it, but it may soon become a popular option for legalization in Bali for wealthy foreigners.

Second Home Visa is issued for 5 and 10 years with the right to extend (subject to the preservation of investments). In addition to the main applicant, family members (spouse, children under 18) also receive a residence permit.

To get a visa for a "Second home", a foreigner must either buy a property worth from 2 billion rupees ($140,000), or put this amount into an account in an Indonesian bank.

An important remark – housing under the program must be purchased on the terms of Hak Pakai, which gives the buyer the exclusive right to use the object. This criterion is met by a smaller part of the supply on the market, about 25%. Basically, the property is sold on the rights of a long-term lease. Learn more about the nuances buying a villa in Indonesia read our material.    

It is believed that the Second Home Visa is an Indonesian version of the digital nomad visa, which the country's authorities talked a lot about last year. However, the financial conditions for this program are quite tough compared to analogues in other countries. Usually, the requirements are limited to confirming monthly income in the form of a salary from a foreign company, as well as renting housing, and not buying expensive real estate. It is not surprising that lovers of the Balinese lifestyle are remote disappointed with the innovation.

The cost of registration: from $3000.

Note that the Second Home Visa does not give the right to conduct business or work for hire in Indonesia. You can conduct business negotiations, but you cannot hire employees.

The Indonesian government continues to surprise with new visa programs. So, "Golden visa" should come into effect very soon, after the bill is agreed with some departments and signed by the president.

Individuals will need to invest at least $350,000 in government bonds to obtain a "golden visa" for 5 or 10 years.

Foreign companies will also be able to participate in the program. To do this, they will need to invest at least $50 million in the economy.

The investment bar is quite high, but also the degree of freedom for the "lucky ones" too. Holders of "golden visas" will be able to live in the country, come at any time, conduct business or other activities, own assets.

«I was banned in Bali». Why are foreigners being deported?

In recent months, Bali's policy towards foreigners has become much tougher due to local discontent, and a wave of deportations has swept across the island. In the first half of 2023, according to the immigration service, 163 foreigners were deported for various offenses, including acts of disrespect for Balinese culture. So, in June, a Danish woman was expelled from the country for exposing herself to the public while riding a motorcycle. In April, a Russian tourist was deported from Bali for publishing a nude photo in front of a sacred tree. A month later, a guest from Germany was arrested after she disrupted a dance performance in a Hindu temple by going on stage naked.

The reason for outrage is not only the provocative antics of visitors, but also the facts of illegal work. Admittedly, this practice is flourishing here. Often people arrive with little money, rent inexpensive housing and enjoy earning the necessary minimum, illegally providing services to compatriots or turning dubious businesses. For a long time, the authorities turned a blind eye to this, but, apparently, their perception of the situation has radically changed.

It is quite easy to catch a foreigner illegally providing services on the territory of the island. A specially created group of law enforcement officers, in particular, monitors the chats of guests in social networks, and also receives complaints from the indigenous population through a recently opened hotline. The chances of deportation are especially high if a foreigner encroaches on the provision of services in the field of beauty and body care. For example, it offers massage, SPA treatments, tattoos. The Balinese authorities are harshly suppressing cryptocurrencies (operations with crypto are prohibited in Indonesia), sending guys who rent bikes to their homeland, without having legal grounds for that.

The Bali administration has accumulated especially many complaints about Russians and Ukrainians. The governor of the island, Wayan Koster, even appealed to the Indonesian government in March with a request to tighten the visa regime for citizens of Russia and Ukraine, however, fortunately, his initiative has not yet been satisfied. 

On the one hand, it is possible to understand the Indonesians, given that often relaxed guests go too far in their curage. But, on the other hand, deportations are sometimes indicative, disproportionate to the mistakes made and do not affect those who really deserve them.

It should be noted that the fight against unreasonable visitors is in line with Bali's new policy towards foreigners. Representatives of the Indonesian authorities, including the Minister of Tourism Sandiago Uno, have repeatedly stated that they want to make the island beloved by people from all over the world a place not for the "poor", but for the "rich". All legislative innovations in the field of hospitality and immigration are aimed at this.

Despite the information foam associated with the search and punishment of violators, the life of most ordinary tourists and immigrants in Bali is quite calm. Those who have been familiar with the island for a long time and firsthand say that the Indonesians are friendly, phlegmatic and patient. They are very sensitive to their traditions, and if the guest respects them, then the relationship will develop in the best way.

Summary

  1. Wealthy foreigners who have serious intentions to invest or open a business in Bali, create jobs, will meet the assistance of the Balinese authorities.
  2. According to the working KITAS, it is relatively easy for professionals in the field of IT, medicine, and real estate specialists with extensive experience to move to Bali.
  3. It is quite difficult to provide services as a self-employed or sole proprietor in Bali, this is the prerogative of the locals.
  4. Despite the fact that Bali is consistently among the leaders in the ratings of the best places for digital nomads, there is still no adequate program for this category of people.
  5. The Second Home Visa program is likely to gain popularity for real estate investors (from $140,000), including for wealthy digital nomads or people with passive income.  
  6. Control over foreigners in Bali has intensified. Now is definitely not the moment when you can just come without a clear plan and "improvise".
  7. Having a visa or a permit for a long stay, it is necessary to carefully monitor the validity of these documents and contact the agency or immigration office in advance about the extension. It is known that there are a lot of holidays in Bali, and it may turn out that there are fewer working days left in stock than you expected.

Thank you for your help in preparing the material:

Svetlana Engelhardt, head of the Russian-speaking direction Ilot Property

Anton Bezgachev, senior broker Magnum Estate

 

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