For many entrepreneurs, 2026 represents the perfect year to finally launch that dream business in Bali, from boutique resorts in Uluwatu to tech consultancies in Ubud. However, the regulatory landscape for foreign capital has tightened significantly under the latest investment directives. What used to be a straightforward application process has evolved into a rigorous audit of capital allocation and corporate compliance, leaving many unprepared founders facing administrative roadblocks or even entry denials.
The agitation of having your business capital locked in a bank account while your immigration papers remain stuck in limbo is a nightmare scenario for any investor. In 2026, the Investment Coordinating Board (BKPM) and immigration authorities are cross-referencing data more aggressively than ever before. A simple mismatch between your declared shareholding and your actual paid-up capital can trigger an immediate rejection, costing you months of operational time and millions of Rupiah in non-refundable fees.
Fortunately, navigating this complex environment is entirely manageable with the right blueprint. This guide breaks down the essential requirements for securing your residency through investment, ensuring your PT PMA meets the 10 billion Rupiah threshold and your personal documents align with Permenkumham No. 22 of 2023. By following these verified steps, you can secure your legal footing and focus on growing your enterprise in the archipelago.
Table of Contents
- Defining the Legal Framework for Foreign Shareholders
- Eligibility: Capital Thresholds and Personal Shares
- Structuring Your PT PMA for Immigration Compliance
- Step-by-Step: From Offshore Application to ITAS Issuance
- Real Story: Marcus’s Corporate Turnaround in Pererenan
- Rights vs. Restrictions: Managing Directors vs. Working
- 2026 Policy Shifts: BKPM Enforcement and Audit Risks
- The Path to Permanency: Converting to KITAP
- FAQ's about Investment Visas
Defining the Legal Framework for Foreign Shareholders
The specific residency permit for foreign shareholders is legally categorized as a Limited Stay Permit (ITAS) based on investment. In 2026, this permit is anchored in the regulations set forth by Permenkumham No. 22 of 2023, which governs visa and stay permits. It is designed specifically for foreign nationals who hold a significant stake in a Foreign Direct Investment company, known locally as a PT PMA (Penanaman Modal Asing).
Unlike a standard work permit, this status acknowledges the holder as an owner rather than an employee. It grants the right to reside in Indonesia and perform high-level management duties such as attending shareholder meetings, signing contracts, and steering the company’s strategic direction. However, it is crucial to understand that this is not a license for freelance work or operational labor. The primary purpose is to allow you to oversee your capital investment within the specific jurisdiction of your registered company.
Eligibility: Capital Thresholds and Personal Shares
Eligibility in 2026 is strictly tied to financial commitment. The days of setting up “shell companies” with minimal capital are effectively over. To qualify, the sponsoring PT PMA must demonstrate a total investment value exceeding IDR 10 billion per business classification (KBLI), excluding land and building values. This “large business” classification is non-negotiable for foreign-owned entities wishing to sponsor an Investor KITAS Indonesia.
On a personal level, the applicant must hold a minimum share value of IDR 1 billion recorded in the company’s deeds and the Ministry of Law and Human Rights (Menkumham) database. If you hold the position of Director or Commissioner, this IDR 1 billion shareholding usually exempts you from the separate obligation of obtaining a work permit (IMTA), although you must still pay into the mandatory social security and health schemes if you receive a salary. For shareholders who do not hold a formal position in the company, the minimum personal investment requirement often rises to IDR 1.125 billion or higher depending on current enforcement trends.
Structuring Your PT PMA for Immigration Compliance
Before applying for any visa, your corporate house must be in perfect order. The process begins with the execution of the Deed of Establishment by a public notary and obtaining the Decree of Approval from the Ministry. Once the legal entity exists, you must register for a Business Identification Number (NIB) through the Online Single Submission (OSS) Risk-Based Approach (RBA) system.
Crucially, the capital structure declared in these documents must match the reality of your bank transfers. The OSS system now integrates closely with immigration data. If your company’s paid-up capital is recorded as less than IDR 2.5 billion (25% of the authorized capital), or if your investment realization reports (LKPM) are missing, the system may automatically block your visa sponsorship application. Ensuring your capital structure is robust from day one is the most effective way to prevent future immigration headaches.
Step-by-Step: From Offshore Application to ITAS Issuance
The application process has become increasingly digitized, allowing for greater efficiency but requiring higher precision. The sponsoring company initiates the request through the official immigration portal, uploading the company’s NIB, deed amendments, and bank statements proving capital solvency. For the investor, a passport with at least 18 months of validity is standard for a one-year permit, while a two-year permit typically requires 30 months or more.
Once the application is vetted and the state fees are paid, an Electronic Visa (e-Visa) is issued. You must enter Indonesia within 90 days of this issuance. Upon arrival at a major port of entry like Ngurah Rai Airport, your e-Visa is scanned, and in many cases, your ITAS is activated immediately. However, you will still need to visit the local immigration office for biometric data capture (photo and fingerprints) to receive your electronic stay permit card and formalize your residency status.
Real Story: Marcus’s Corporate Turnaround in Pererenan
Marcus, a 45-year-old tech entrepreneur from Hamburg, moved to the up-and-coming neighborhood of Pererenan to establish a boutique software consultancy. He had successfully registered his PT PMA and secured his Investor KITAS Indonesia with a two-year validity. Marcus spent his days coding in a sleek co-working space and his evenings enjoying the sunset at Lima Beach. He felt secure, believing his administrative work was finished for the next 24 months.
The trouble started six months later when he received a notification from the tax office regarding a discrepancy in his corporate tax filings and his personal dividend declarations. He had assumed his visa agent was handling his fiscal compliance, but they had only managed the immigration paperwork. Facing a potential audit and the risk of his visa being revoked due to company non-compliance, the humidity of the tropical air suddenly felt suffocating. Marcus immediately engaged a trusted tax management company to audit his books. They corrected his monthly tax reports and aligned his investment realization data with his visa status. This intervention saved his company from hefty fines and ensured his residency remained valid, teaching him that a visa is only as secure as the company sponsoring it.
Rights vs. Restrictions: Managing Directors vs. Working
Understanding the distinction between “managing” and “working” is vital to staying out of trouble. As an investor and Director, you are legally permitted to steer the company. You can define marketing strategies, hire and fire staff, attend board meetings, and sign checks. These are considered acts of ownership and management.
However, you are strictly prohibited from performing operational tasks that could be done by a local employee. For example, if you own a restaurant, you cannot serve drinks behind the bar or cook in the kitchen. If you own a villa rental company, you cannot act as the pool cleaner or the driver for guests. Immigration officers frequently conduct spot checks, and finding a foreign investor performing manual or operational labor is grounds for immediate deportation and a ban on future entry.
2026 Policy Shifts: BKPM Enforcement and Audit Risks
The most significant shift in 2026 is the aggressive enforcement of capital realization by the Investment Coordinating Board (BKPM). In previous years, many investors could get by with declaring capital on paper without deploying it. Now, renewing an Investor KITAS Indonesia often requires proof that the declared funds have actually been spent on business activities—whether that’s office rent, equipment, or salaries.
Furthermore, the integration of tax data with immigration systems means that your company must be active and tax-compliant to sponsor visas. Dormant companies, or “PT PMA tidur,” are being systematically purged. If your company reports zero activity for consecutive quarters, authorities may deem your entity invalid for sponsorship, leading to the cancellation of all associated investor visas.
The Path to Permanency: Converting to KITAP
For those committed to Indonesia for the long haul, the Investor KITAS offers a clear pathway to a Permanent Stay Permit (KITAP). Under current practice, an investor who has maintained their ITAS status for a continuous period—often cited as three to five years depending on the specific track—may apply for a KITAP. This permanent permit is valid for five years and is automatically renewable, offering a level of stability comparable to citizenship without the need to surrender your original passport.
The KITAP allows for easier travel, longer validity, and a deeper integration into Indonesian society. However, the requirement to maintain your shareholding in the PT PMA remains. If you sell your shares or dissolve the company, your KITAP, which is tethered to your role as an investor, will be cancelled. Thus, maintaining a healthy, compliant business is the rent you pay for your permanent residency in paradise.
FAQ's about Investment Visas
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Can I work as a freelancer with this visa?
No, this visa is strictly tied to your role as a shareholder in your specific PT PMA and does not authorize freelance work for other clients.
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What happens if my company does not make a profit?
Profitability is not a strict visa requirement, but the company must show activity and investment realization (spending) to remain a valid sponsor.
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Can I bring my family?
Yes, investors can sponsor their spouse and unmarried children under 18 for dependent visas (ITAS Penyatuan Keluarga).
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Is the IDR 10 billion capital requirement per shareholder?
No, the IDR 10 billion requirement is for the company's total investment plan per business sector, not per individual shareholder.
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Do I need a return ticket to enter?
Yes, having a return or onward ticket is a standard requirement for entry, even for temporary residency holders, to prove you do not intend to overstay.
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Can I open a personal bank account?
Yes, holding an ITAS allows you to open personal bank accounts with most major Indonesian banks.
