Foreign National Residence Permits as Shareholders

by admin on September 12, 2024

Provisions for Foreign National Residence Permits as Shareholders

The provisions for residence permits for foreign nationals who make investments are regulated in BKPM Regulation 4/2021. Limited Residence Permits (“ITAS”) for foreign investors are granted to foreign nationals who make PMA with a value that meets the following requirements:

1. as shareholders and serve as directors or commissioners of a company with the provision of share ownership of at least IDR 1 billion or the equivalent in US dollars as stated in the deed.
2.  as shareholders and do not serve as directors or commissioners of a company with the provision of share ownership of at least IDR 1.125 billion or the equivalent in US dollars as stated in the deed.

Meanwhile, Permanent Residence Permits (“ITAP”) are granted to foreign nationals who make PMA with a value that meets the following requirements:

1. as shareholders and serve as directors or commissioners of a company with the provision of share ownership of at least IDR 1 billion or the equivalent in US dollars as stated in the deed.
2. as a shareholder and not as a director or commissioner of a company with the provision of share ownership of at least IDR 10 billion or the equivalent in US dollars as stated in the deed.

In the case of capital invested by a foreign national amounting to less than IDR 1 billion, then the foreign national is required to use ITAS or ITAP. In its administration, an application for permission to use foreign workers must be submitted to the Ministry of Manpower first.