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The Indonesia Employment Visa E25, commonly associated with the Work KITAS (ITAS), is the official residence permit for foreign nationals who intend to work legally in Indonesia under an Indonesian company. This visa is specifically designed for foreign professionals, executives, and company officers, including commissioners, directors, managers, and specialized experts. Under current Indonesian immigration regulations, the E25 visa category provides a structured legal pathway for foreign workers to live and work in Indonesia while ensuring compliance with both immigration and manpower laws. What Is the Indonesia Employment Visa E25? The Employment Visa E25 is a limited stay visa (VITAS) that converts into an ITAS (Limited Stay Permit) upon entry into Indonesia. This visa is issued to foreign nationals who: are formally employed by an Indonesian company hold a specific position within the company have obtained approval from the Ministry of Manpower (Work Permit / RPTKA approval) Unlike business or visit visas, the E25 visa allows legal employment and income generation in Indonesia, but strictly within the approved job position. Who Can Apply for an E25 Work Visa? The E25 visa applies to foreign professionals holding official roles in Indonesian companies. Main Position Categories Include: E25A – Commissioner E25B – Director E25C – Vice Director E25D – General Manager E25E – Manager E25F – Supervisor These categories ensure that the visa aligns with the applicant’s corporate role and responsibility level. Each applicant must be formally appointed and registered within the company’s legal structure. Validity and Stay Period The Indonesia Employment Visa E25 offers flexible stay durations depending on the company’s needs and approval: Up to 180 days (extendable) Up to 1 year (extendable) Up to 2 years (extendable) The visa must be used within 90 days from the date of issuance. After entering Indonesia, the visa is automatically converted into: ITAS (Limited Stay Permit) MERP (Multiple Exit Re-Entry Permit) This allows the holder to enter and exit Indonesia freely during the validity period. Activities Allowed Under E25 Visa The E25 visa provides a broad range of legal activities for foreign professionals in Indonesia. You are allowed to: Work legally according to your approved position Receive salary or compensation from your employer Perform executive or managerial duties Participate in company operations and decision-making Conduct investment-related activities Travel in and out of Indonesia freely Bring eligible family members (dependent KITAS) Engage in tourism or personal visits during your stay Attend educational programs (if registered properly) This makes the E25 visa one of the most comprehensive residence permits for expatriates in Indonesia. Important Legal Obligations E25 visa holders must strictly comply with Indonesian regulations. You must: Follow all Indonesian laws and immigration rules Work only in the approved position and company Comply with your employment contract Respect local customs and cultural norms Maintain sufficient financial support during your stay Failure to comply may result in: administrative fines visa cancellation deportation blacklisting from Indonesia Prohibited Activities Even though the E25 is a work visa, there are clear restrictions. You are not allowed to: Work outside your approved job position Work for another company without authorization Engage in unauthorized business activities Violate employment or immigration conditions This is one of the most common compliance issues among foreign workers in Indonesia. Requirements for Indonesia Employment Visa E25 Applicants must prepare both personal and company documents. Personal Documents: Passport valid for at least 6 months Recent color photograph Curriculum Vitae (CV) Travel itinerary Bank statement (minimum USD 2,000 equivalent, last 3 months) Company & Legal Documents: Guarantee letter from sponsoring company Work permit approval from the Ministry of Manpower (RPTKA / IMTA equivalent) Company legal documents (establishment, licenses, etc.) All documents must be accurate and consistent, as discrepancies may delay approval. How the Process E25 Works Visa The process of obtaining an E25 visa typically follows these steps: Work Permit Approval The company obtains approval from the Ministry of Manpower. Visa Application (VITAS) The visa is applied through Indonesia’s e-visa system. Entry to Indonesia The applicant enters Indonesia using the approved visa. ITAS Issuance Upon arrival, the visa is automatically converted into: ITAS (stay permit) MERP (re-entry permit) Optional Physical Card Although Indonesia uses digital systems, a physical KITAS card can still be issued at the immigration office if needed. Why Choosing the Correct Work Visa Matters Indonesia has become stricter in monitoring foreign workers. Using the wrong visa category (e.g., business visa instead of work visa) can result in: heavy fines deportation long-term entry bans The E25 visa ensures full legal protection for both the employee and the sponsoring company. Conclusion The Indonesia Employment Visa E25 (Work KITAS) is the primary legal pathway for foreign professionals to work and reside in Indonesia. With flexible validity options, broad permitted activities, and full compliance with Indonesian law, it is essential for anyone planning to build a professional career or executive role in the country. However, due to strict regulatory requirements involving both immigration and manpower authorities, proper structuring and documentation are critical. Need Professional Assistance? Sam Consulting provides end-to-end support for: Work KITAS (E25) processing Company sponsorship setup RPTKA and manpower compliance Immigration and legal advisory If you want a fast, compliant, and secure process, our expert team is ready to assist you.   Do you need our help? Please contact us by WhatsApp  

What Is KITAS / ITAS? ITAS (Izin Tinggal Terbatas) is a Limited Stay Permit for foreigners or expatriates to stay or work in Indonesia for a period of time. In addition, the Indonesian government issued a physical card for an ITAS known as KITAS (Kartu Izin Tinggal Terbatas) Limited Star Permit Card, but now KITAS is issued digitally.  This Limited Stay Permit (ITAS) is valid for 6 (six) months, 1 (one) year up to 2 (two) years. This permit can be extended by an applicant according to laws and regulations. Then, after 2 (two) years, it is still possible for foreigners to extend it.    Laws and Regulations Meanwhile, the Indonesian Government regulates regarding KITAS (limited stay permit) as follows: Law number 13 of 2013 concerning Manpower. Government Regulation (PP) number 31 of 2013 concerning Implementing Regulation of Act number 6 of 2011 concerning Immigration. Regulation of Ministry of Law and Human Rights (Permenkumham) number 27 of 2014. Government Regulation number 26 of 2016 concerning Amendment to Government Regulation number 31 of 2013 concerning Implementing Regulation of Act number 6 of 2011 concerning Immigration. (PP 26 / 2016). Regulation of Ministry of Law and Human Rights number 16 of 2018 concerning the procedure of issuing visa and stay permits of foreign workers. Presidential Regulation number 20 of 2018 concerning the use of foreign workers.  A Sort of KITAS The government issues three kinds of KITAS (limited stay permit), namely: KITAS Working Visa KITAS or ITAS is commonly used for foreigners who want to work in Indonesia. However, foreigners also need a work permit known as the Approval of Foreign Worker Utilization Plan (Pengesahan RPTKA) mentioning the job titles,  specific tasks, and the length of employment of a foreign worker.  Furthermore, to apply for a working visa KITAS, you must obtain sponsorship from your employer which is a registered company within Indonesia. These companies include: An Indonesian-owned company (PT PMDN). A foreign-owned company (PT PMA). A representative office. A working KITAS/ITAS holder also can re-enter Indonesia multiple times with one permit that is referred to as a MERP (Multiple Exit and Re-entry Permit).   KITAS Spouse Visa  The main requirement to obtain a Spouse Visa KITAS /ITAS is getting married to an Indonesian citizen. You also need an official marriage certificate approved by the Indonesian government. Authorized offices that can perform marriages are religious affairs offices (Kantor Urusan Agama / KUA) and civil registry offices (kantor catatan sipil). Furthermore, getting married directly in Indonesia is the best choice for a spouse visa KITAS. Based on marriage law in Indonesia, the marriage to an Indonesian spouse is valid only when it is performed in accordance with the regulations and religious beliefs of both husband and wife in Indonesia. This KITAS spouse visa only allows foreigners to stay, not being employed in Indonesia, only as a freelancer.   Do you need our help? Please contact us by WhatsApp   KITAS Retirement Visa KITAS Retirement Visa is for foreigners with the age of 55 years or older and would like to spend their retirement in Indonesia. To obtain this KITAS retirement visa, you can enter Indonesia first, then after a month, you can apply for a KITAS retirement visa.  In addition, the KITAS retirement visa is a type of long-term visa that you can obtain through an online application and should meet some requirements.  With a retirement KITAS/ITAS, you can live in Indonesia, enter and exit the country as many as possible. Also you are allowed to obtain a local bank account and hire a driver or domestic helper. However, please note that you are not allowed to work at all in Indonesia.    Who Is Eligible to Apply for KITAS (limited stay permit)? The following are the ones who are eligible to apply for KITAS (limited stay permit): Foreigners entering Indonesia with a limited stay visa. Children that were born in Indonesia with their father and/or mother of a KITAS holder at the time of birth. Foreigners that are converted from a visit stay permit. Foreigners who get married legally to an Indonesian citizen. Children of foreigners that are legally married to Indonesian citizens. Captain, crew, or foreign experts on board ships or institutions which operate in Indonesian waters and jurisdictions.    Required Documents to Apply for KITAS Here are some required documents to obtain KITAS, namely: Your valid passport and a colored copy of your passport. Proof of financial solvency Two passport-size colored pictures Any other documents that may be requested by the Immigration Department depending on the KITAS you apply for. Procedure to Obtain KITAS For foreigners who would like to apply for KITAS, Sam Consulting offers a KITAS service that makes it easy for you to obtain KITAS.  That’s all the review of limited stay permit or KITAS/ITAS. If you need more information regarding the visa or permit, please contact SAM Consulting with a professional team ready to help any time. Furthermore, SAM Consulting has a 10 years proven track record of handling international clients.   Do you need our help? Please contact us by WhatsApp  

Indonesia continues to simplify entry procedures for international travelers through the Visa on Arrival Indonesia (VoA) system. This visa allows eligible foreign nationals to enter the country quickly for tourism, short visits, and limited business activities without applying for a visa long before travel. This Visa is widely used by visitors arriving in destinations such as Bali, Jakarta, and other major entry points. Travelers can obtain the visa either directly at the airport upon arrival or online through the electronic (e-VoA) system before departure. This guide explains the latest rules, requirements, and extension procedures for VoA in 2026. What Is the Visa on Arrival Indonesia? The Visa on Arrival Indonesia (VoA) is a short-term visit visa issued to eligible foreign nationals when they enter the country. This visa allows visitors to stay in Indonesia for a limited period for activities such as tourism, visiting friends or family, or attending certain non-employment business meetings. Under the Indonesian immigration classification system, the Visa on Arrival corresponds to Visit Visa Index B1. Visitors can obtain this visa: directly at designated Indonesian airports or seaports, or online through the electronic (e-VoA) system before traveling. Because of its simplicity, the Visa on Arrival has become the most commonly used entry visa for short visits to Indonesia. How Long Can You Stay with this Visa? It allows visitors to stay in Indonesia for: 30 days initial stay This stay period can be extended once for another 30 days, giving a maximum stay of 60 days. It is important to apply for the extension before the initial 30-day period expires. Overstaying a visa may result in administrative penalties. Currently, Indonesian immigration regulations impose an overstay fine of approximately IDR 1,000,000 per day. Visa Validity It must be used within 90 days from the date of issuance. It is important to note that visa validity is different from the permitted stay period. The stay period begins from the date of entry into Indonesia, not from the date the visa was issued. Visa on Arrival Extension Visitors who wish to stay longer than 30 days may apply for an extension. The extension allows: one additional 30-day stay  Extensions are typically processed through the Indonesian immigration system. Travelers should apply for the extension before the initial stay period expires. Activities Allowed with Visa on Arrival Visitors entering Indonesia with a VoA may conduct several permitted activities. These include: Tourism and Leisure Travelers may visit Indonesia for vacations, sightseeing, and personal travel. Visiting Friends or Family Foreign nationals may visit relatives or acquaintances residing in Indonesia. Business Discussions The visa allows participation in certain non-employment business activities, such as: business meetings contract discussions negotiations signing agreements Visitors may also conduct site visits to offices, factories, production facilities, or mines. Medical Treatment Foreign nationals may travel to Indonesia for medical consultations or treatment at hospitals or healthcare facilities. However, the Visa on Arrival does not allow employment or paid work. Activities Not Allowed Under VoA Although some business activities are permitted, VoA remains a visit visa, which means certain activities are prohibited. Visa holders may not: work for Indonesian companies receive salary or wages in Indonesia sell goods or services conduct profit-generating activities manage business operations or supervise production continuously Foreign nationals who intend to work or manage business operations in Indonesia must instead apply for a Work KITAS or Investor KITAS. VoA Requirements Travelers must present the following documents when entering Indonesia under this Visa Passport The passport must be valid for at least six months from the date of entry. Return or Onward Ticket Visitors must provide proof of an outbound ticket leaving Indonesia. Immigration officers may also ask additional questions regarding the purpose of travel and intended length of stay. Electronic Visa on Arrival (e-VoA) Indonesia now offers the (e-VoA), which allows travelers to obtain it online before traveling. The e-VoA system helps visitors avoid long queues at immigration counters and speeds up entry procedures at airports. After approval, the visa is digitally linked to the traveler’s passport and verified by immigration officers upon arrival. Travelers using e-VoA must still ensure that their passport and travel documents meet the required conditions. Where Can You Get Visa on Arrival? Visa on Arrival is available at many international entry points in Indonesia, including major airports and seaports. Common entry locations include: Ngurah Rai International Airport (Bali) Soekarno-Hatta International Airport (Jakarta) Juanda International Airport (Surabaya) several international seaports and other airports Not all entry points provide Visa on Arrival services, so travelers should confirm eligibility before traveling. When Should You Use Visa on Arrival? Visa on Arrival is suitable for travelers who: plan short vacations in Indonesia want a simple entry procedure intend to stay no longer than 60 days attend short business meetings or negotiations However, travelers who plan longer stays, employment, or business operations should apply for other visa types. Who Is Eligible for VoA Indonesia? This Visa is available to citizens of selected countries approved by Indonesian Immigration. Eligibility may change based on government policy updates. Travelers are advised to verify their eligibility before applying or consult a professional visa advisor to avoid entry issues. If you are unsure whether your nationality is eligible, Sam Consulting can verify your eligibility and assist with your application before your travel. Conclusion The Visa on Arrival Indonesia provides a convenient entry option for international travelers visiting the country for tourism, short visits, or limited business activities. With a simple application process and the option to extend the stay once, this visa remains one of the most practical entry permits for short-term visitors. However, travelers should always ensure that their visa type matches the purpose of their visit. Engaging in prohibited activities or overstaying may lead to fines or immigration penalties. Sam Consulting assists international visitors with visa guidance, immigration procedures, and residence permit planning in Indonesia. If you need professional advice regarding Indonesian visas or long-term stay permits, our experienced team is ready to assist.   Do you need our help? Please

The Indonesia Business Visa allows foreign nationals to enter Indonesia for meetings, negotiations, and other temporary commercial activities. Under the latest Indonesian immigration regulations, business visitors may travel to Indonesia using several visa categories such as the B1 short visit visa, C2 business visa, or D2 multiple entry business visa, depending on the length and frequency of their visits. Under the latest Indonesian immigration regulations, business visits typically fall under several visa categories, including B1 short visit visas, C2 business visit visas, and D2 multiple entry business visas. Each visa allows certain business activities but does not permit employment or income-generating work in Indonesia. This guide explains the types of business visas available in Indonesia, permitted activities, requirements, and key immigration rules for international visitors. What Is an Indonesia Business Visa? An Indonesia Business Visa allows foreign nationals to enter Indonesia for temporary commercial activities that do not involve employment. In other words, it allows you to explore business opportunities — but not to work. These visas are commonly used for: Business meetings and negotiations Contract discussions and signing agreements Market research and feasibility studies Site visits to offices, factories, and production facilities Participation in conferences, meetings, and exhibitions However, a business visa does not grant the right to work in Indonesia. Visitors entering Indonesia for business purposes are not allowed to: Sell goods or services directly Receive salary or wages from Indonesian companies Work for Indonesian employers Continuously supervise operational business activities Foreign nationals who intend to work or manage operations must apply for a Work KITAS or Investor KITAS instead. Types of Indonesia Business Visas Indonesia currently provides several business visa options depending on visit duration and travel frequency. B1 Visa (Short Visit – 30 Days) The B1 visa is typically used for short-term visits that combine tourism with limited business activities. Stay Duration Up to 30 days Extendable once for another 30 days Permitted Activities Under the B1 visa, visitors may: Attend business discussions or negotiations Sign agreements or contracts Conduct site visits to offices or factories Visit friends or family Travel for tourism Receive medical treatment in Indonesia Entry Requirements Travelers must present the following documents during immigration inspection: Passport valid for at least 6 months Outbound or return ticket from Indonesia Visa Validity The visa must be used within 90 days from the date of issuance.   C2 Business Visit Visa (60 Days) The C2 visa is designed for foreign professionals who require a longer business stay and want to obtain visa approval before arriving in Indonesia. Stay Duration Up to 60 days Extendable depending on immigration approval Permitted Activities C2 visa holders may: Conduct business meetings or negotiations Sign commercial contracts Inspect goods or production sites Visit suppliers or manufacturing facilities Travel for tourism Visit friends or family Restrictions Visitors under this visa are not permitted to perform operational work or earn income in Indonesia. They are prohibited from: Selling goods or services Receiving salary or compensation Supervising production activities continuously Required Documents Applicants typically must provide: Passport valid for at least 6 months Bank statement for the previous three months Recent passport photograph Invitation letter from an Indonesian company or institution   D2 Multiple Entry Business Visa Frequent business travelers may apply for the D2 Multiple Entry Business Visa, which allows repeated visits to Indonesia without applying for a new visa each time. Applicants can apply for Investor KITAS for more liabilities. Stay Duration Up to 60 days per entry Available Validity Options 1 Year 2 Years 5 Years Permitted Activities D2 visa holders may: Attend meetings and negotiations Sign commercial agreements Visit suppliers or production facilities Participate in conferences and exhibitions Travel for tourism or personal visits Restrictions Like other business visit visas, D2 visa holders cannot work or receive income in Indonesia. Prohibited activities include: Selling goods or services Working for Indonesian companies Receiving salary or compensation Managing operational business activities Required Documents Applicants must generally provide: Passport valid for at least 6 months Proof of financial capability of minimum USD 2,000 Recent passport photograph Additional supporting documents may include: Business invitation letter Curriculum Vitae Travel itinerary Important Immigration Compliance Rules All business visa holders must follow Indonesian immigration regulations. Visitors must respect local customs, comply with visa conditions, and maintain sufficient financial resources during their stay. It is important to note that overstaying  or engaging in prohibited activities may lead to: Administrative fines Deportation Entry bans Additional legal sanctions Currently, overstaying in Indonesia may result in a fine of approximately IDR 1,000,000 per day. Choosing the Right Business Visa Selecting the correct visa depends on the purpose and frequency of travel. Generally: B1 Visa is suitable for short business visits or exploratory trips. C2 Visa is ideal for longer business stays. D2 Multiple Entry Visa is recommended for executives and investors who travel frequently to Indonesia. Using the correct visa type helps ensure smooth entry into Indonesia and full compliance with immigration regulations. Conclusion Indonesia offers flexible business visa options for international professionals who need to visit the country for meetings, negotiations, or commercial exploration. However, business visit visas are strictly limited to non-employment activities. Foreign nationals who intend to work or manage business operations in Indonesia must apply for the appropriate long-term stay permit. Sam Consulting provides professional assistance with business visa applications, immigration compliance, and investor residency planning in Indonesia. If you need help determining the correct visa for your situation, our experienced team is ready to assist. Frequently Asked Questions Can I work in Indonesia with a business visa? No. Business visas only allow meetings, negotiations, and site visits. Employment requires a Work KITAS. Can I extend a business visa in Indonesia? Yes. Some business visas, such as the B1 and C2 visas, may be extended depending on immigration approval. What is the difference between a business visa and an Investor KITAS? A business visa allows temporary visits for meetings or negotiations, while an Investor KITAS allows long-term residence for foreign shareholders or directors of Indonesian

Registering a trademark in Indonesia brings many advantages for your business. You also gain exclusive rights to your business logos, branding, and symbols. Know more details about the trademark below! Definition of a Trademark A trademark is defined as a brand that is used on goods traded by some people collectively agreed or legal entity to distinguish other similar goods. In addition, the examples of trademarks in Indonesia for products are Apple, Samsung, SONY, NOKIA, Sosro, LG, and so on.  A trademark differentiates one from others through symbols, colors, designs, words, and graphics that identify a business. Protecting trademarks is an asset in leading to greater customer satisfaction and higher sales.  In addition, by registering a trademark in Indonesia, the owner’s rights are protected and can file legal action against unauthorized use of the trademark.   Regulation of a Trademark in Indonesia Indonesian government issues some rules to regulate the trademark in Indonesia, as follows: Law Number 20 of 2016 (Trademark and Geographical Indication Law). Ministerial Regulations of Law and Human Rights Number 67 of 2016 regarding Trademark Registration.     Benefits of Registering a Trademark in Indonesia By registering your trademark, you will gain some advantages for companies, namely: The exclusive law protection for owners of intellectual property rights.  A registered trademark definitely is protected from unauthorized use of the trademark. Then, the owner of rights can file legal action against claims of infringement by other parties. First to file. In accordance with Indonesian Trademark Law No. 20 of 2016, the government applies the “first to file’ method which means the first legal person, firm or legal entity that files for a particular trademark in Indonesia gains the priority for its use.    Need our help? Contact us by WhatsApp Avoid loss due to unauthorized use of a trademark. Due to an unregistered trademark, anybody can use the trademark. This definitely gives disadvantages, even the loss for your business as anybody can easily duplicate the trademark so that customers can’t distinguish it from other similar brands.  Increase profit The registered trademark boasts added value in the eyes of their customers due to the product having differentiation from other similar brands. In addition, the company can use this trademark to approach their brand closer to their prospects. Enhance competitiveness in business A trademark that is already registered cannot be duplicated by anybody or a legal entity without authorized use of the trademark.   Requirements of Registering a Trademark in Indonesia To register a trademark, there are some requirements to follow for the person and legal entity.  A trademark for a legal entity requires the documents as follows: A deed of company establishment. Scan / photocopy personal identity and Tax Payer Number (Nomor Pokok Wajib Pajak) of president director. The description of business name, business field, and name of a trademark that will be registered. Logo of trademark (if any) with the size of trademark label min. 2×2 cm and max 9×9 cm in the form of JPG. Other related documents. A trademark for the person requires the documents as follows: Scan/photocopy Indonesian ID (KTP) of the applicant (Indonesian citizen). Scan / photocopy KITAS / KITAP of applicant (foreigner or expatriate). The description of business name, business field, and name of a trademark that will be registered. Logo of trademark (if any) with the size of trademark label min. 2×2 cm and max 9×9 cm in the form of JPG. Other related documents.   Need our help? Contact us by WhatsApp   How to Register a Trademark in Indonesia The following is a procedure to register a trademark in Indonesia: Brand Checking This first step is to check whether the trademark is already registered or not. Filling in the Application Form If the trademark is not registered yet, next register through https://merek.dgip.go.id/. Then, fill in the form that contains: You should translate the meaning of the trademark into Bahasa if the trademark in English. Formality Examination If the application is accepted, the Directorate General of Intellectual Property Rights (DGIP) conducts a formality examination. Then, if the application meets the requirements, the announcement of the application in the official Trademark gazette will be published for 2 months. This is to see whether there will be any opposition from parties. If there is any opposition, the applicant can issue a counter statement to reject the opposition. On the other hand, if there is no opposition, the applicant can continue the process to the next steps.  Substantive Examination Next, conduct a substantive examination for 30 days. If the examiner in the substantive examination decides that the application can be registered, DGIP will register the trademark and let the applicant or representative know about the trademark registration.  Trademark certificates will be issued and given to the applicant or representative after being registered. Last, DGIP will also announce trademark registration in the official Trademark gazette.   In conclusion, trademark registration is important to protect your business in the future. If you need help registering a trademark, SAM Consulting with a professional team is ready to help any time. Furthermore, SAM Consulting has a 10 years proven track record of handling international clients.   Need our help? Contact us by WhatsApp  

  A joint venture Indonesia (JV) combines two or more businesses’ expertise and resources to reach particular goals or pursue specific projects. The joint venture is not only combining different resources but also shares its rewards and risks. Since it is a big decision, many considerations involve before entering into a joint venture Indonesia.   Things Need to Consider before Setting up a Joint Venture It is easier to start a new joint venture company in Indonesia than buying shares in an existing one. Other Things you need to consider while setting up a joint venture in Indonesia are as follow:   1. Determine the Business Sector First of all, it is vital to determine the business sector of Indonesian joint ventures. It is because not all sectors are open to foreign ownership.   2. Negative Investment List and Foreign Ownership Under the Negative Investment List (DNI), regulate the maximum percentage of foreign ownership. This list keeps updated from time to time.   3. Determine the Locations After determined the joint venture company’s business sector and foreign ownership, it is also necessary to decide where the JV will operate. This is because certain business sectors do not allow a joint venture to operate in certain Indonesian regions. Therefore, certain business sectors only allow a joint venture to operate in specific regions in Indonesia.   4. Taxation The major taxation matters for a joint venture company are the withholding and income tax payable. In most cases, foreign shareholders are responsible for 20% of the final withholding tax on dividends from an Indonesian joint venture company. Once JV is established, it is always advisable to outsource taxation matters to an expert to ensure compliance and seamless operations in Indonesia.   Types of Joint Venture in Indonesia Before setting up a JV, you need to know about the types of JV in Indonesia. There are two types of joint ventures in Indonesia: corporate JVs and contractual JVs.   Corporate JVs There are two kinds of Corporate JVs which are incorporated JVs and partnerships. An incorporated JV is a legal entity that has limited liability status, commonly referred to as a limited liability company (Perrseroan Terbatas or “PT”). PTs are organized under the Company Law. A partnership is a business entity that does not have limited liability status. Common forms of partnerships in Indonesia include: A firm (firma or venootschap onder firma); A komanditer partnership/association (commanditaire vennotschap or “CV”). The main difference between a firm and a CV lies in the contribution of the partners. In a CV, there are two types of partners, namely active partners, who manage the business of the CV, and passive partners, who merely make capital contributions to the CV. Above all, the liability of a CV’s passive partners is limited to the amount of their capital contribution. In contrast, there are no distinct categories of partners in a firm.   Contractual JVs A contractual JV does not require the establishment of a legal entity since it’s formed by agreement between the JV partners. The typical JV founding documents for a corporate JV are the: Deed of establishment, which contains the entity’s articles of association and a list of the members of the board of directors and board of commissioners, for a limited liability company (PT), or a list of the partners, for a partnership. JV/shareholders’ agreement entered into by the JV partners, which is a private agreement documenting the relationship between the JV partners. The deed of the establishment must be in the form of a notarial deed. A decree from the Ministry of Law and Human Rights (MOLHR) approving the establishment of the PT (MOLHR decree). Want to know more about Joint Venture in Indonesia? Please contact us  

  As the largest and fastest-growing digital economy in Southeast Asia, Indonesia is estimated the gross merchandise value of its digital economy that will grow US$100 billion by 2025. The growth expected is beyond the entire Southeast Asia region that has US$240 billion digital era economy growth in total. Also, There are 75 fintech payment startups and more than 150 fintech lending startups, with 2000 technology startups in total in Indonesia. Despite the COVID-19 pandemic, Indonesia’s digital era economy growth remains strong and has increased. It is increasing 11% to US$44 billion compared to US$40 billion in 2019.   Indonesia’s Rapid Economy Growth: How it can be? Indonesia’s population is the largest in Southeast Asia. Approximately 273.5 million as of 2020 is the reason for the rapid and exciting growth. The increase of mobile phone and internet penetration rate is along with Indonesia’s per capita income growth. Leveraging on this digital economy growth in Indonesia as the way to innovate to deal with the inefficiencies in Indonesia. Inefficiency elimination allows individuals to communicate, purchase, and sell things and perform financial transactions with the application of digital technology, further driving the already rapidly-growing digital sector.   Starting a Business in Indonesia: the Rising Digital Economy of Indonesia Two businesses are flourishing in this digital economy of Indonesia, Fintech, and health-tech. Compared to other sectors in the country, the fintech sector has a relatively high adoption rate. Indonesia has a great alternative to traditional banking in terms of flexibility and convenience through this sector.   Boost The Digital Economy Growth: How initiative? Regulations are not fully matured in this dynamic digital economy in Indonesia yet. Still, the Indonesian government is striving to develop several initiatives to promote the digital economy growth. In addition, these initiatives include creating clear and simplified licensing requirements for digital startups, setting policies for customer protection, establishing a fintech sandbox, and building a code of conduct through the Asosiasi Fintech Indonesia and Asosiasi Fintech Pendanaan Indonesia. The Indonesian government issued GR 71/2019, concerning customer protection and data privacy and customer protection on the implementation of electronic systems and transactions to replace GR 82/2012 on the implementation of electronic systems, electronic transactions, electronic agents, electronic certification, domain name management, and reliability certification institutions. Want to know more about starting a business in Indonesia? Please contact us. Lastly, you can read about how to set up a foreign company in Indonesia.

  Halal Industry Indonesia: What is Halal and Halal Certificate? Halal means there are no Haram ingredients in consumer goods such as food, drugs, and cosmetics. What is Haram, then? Haram is everything that contains pork, lard, animal blood, dead and poisonous animals, and non-haram animals slaughtered without Islamic-Law compliance. Furthermore, to convince customers that a product doesn’t contain any Haram ingredients also permissible to consume, we need a Halal Certificate to prove. As an instrument of the halal industry in Indonesia, Halal Certification declares that the products follow Islamic Law. Indonesian Halal Certificate Issuing Authority The National Body of Halal Assurance (BPJPH) is the highest authority to certify and issue a halal certificate in Indonesia. BPJPH works in coordination with the Indonesian Ulama Council (MUI). As one of the highest authorities on Indonesian Islamic affairs, MUI is in charge of setting up the halal compliance standard and issuing the Halal fatwa. The two major authorities (The Food, Drug, and Cosmetics Assessment Agency (LPPOM) and MUI Fatwa Committee) are responsible for halal assessment, audit, and declaration.   Important Notes on Halal Standard in Indonesia Meanwhile, the halal standard based on MUI’s Fatwa Indonesia is Sharia Law. There are some specific details that companies need to pay attention to: • Firstly, Under Sharia Law, a company cannot associate their brand/product name or insinuate with anything haram. • Also, MUI prohibit packaging, design, and nature of a product (i.e., sensory characteristics) that imitate anything haram.   Types of Halal Certificates in Indonesia Categories that can apply for the Halal Certificate are: Food and Beverages, Drugs, Cosmetics, Slaughterhouses, and Restaurants/ Catering/ Kitchens Furthermore, both manufacturers and importers/distributors can apply for the Halal certificate. That’s not true if one of the requirements to obtain a Halal Certificate must be your company’s management needs to be Muslims. As long as your company complies with the requirements, the religion of its management team is irrelevant. Want to know more about Halal Certification? Please contact us! Read about the under-name import service Indonesia!

  Law Number 6 of 2011 concerning Immigration regulates the definition of sponsor or guarantor. A guarantor is a person or corporation responsible for the presence and activities of foreigners while in the territory of Indonesia. Obtain a stay permit sponsorship in Indonesia is a vital thing to have. A foreigner can’t choose randomly for a person to be a stay permit sponsorship in Indonesia since the Government has some specific criteria.   How to choose a stay permit sponsorship in Indonesia? Based on the laws and regulations in Indonesia, three legal subjects can become sponsors for foreigners who want to stay in Indonesia. The guarantor and sponsor have a crucial position in the visa process. Spouse of foreign citizens who will come to Indonesia, in the case of mixed marriages. Foreign nationals who are married to Indonesian citizens can obtain guarantees from their spouses who are Indonesian citizens. Spouses of Indonesian citizens can be the person in charge of regular visas. Every Indonesian citizen can also become a guarantor or sponsor of a visa for foreign citizens. Visas that can be sponsored by ordinary Indonesian citizens are Visa on Arrival and Repatriation Visa. Repatriates are foreign ex-Indonesian citizens who wish to live in the Indonesian Territory. Indonesian companies can also become sponsors or guarantors for Foreign Workers (Foreign Citizens who come to Indonesia to work). However, not all Indonesian companies can become sponsors or guarantors for their employees. Only Indonesian companies that have a minimum paid-up capital of IDR 1 billion can become guarantors.   Responsibilities as a Stay Permit Sponsorship Meanwhile, the guarantor or sponsor has various responsibilities after the guarantee for the foreign worker has obtained a visa. These responsibilities are: firstly, be responsible for the existence and behavior of foreign nationals or foreign workers during their existence in Indonesia; next, report any changes in civil status, immigration status, and changes in the address of the foreigner who is their responsibility; lastly, pay costs arising from the return or return of foreign nationals or foreign workers who are under guarantee by him if The residence permit for the foreign citizen or foreign worker in question has expired; the subject of immigration action in the form of deportation. Read The new regulation about stay permit in Indonesia during covid-19. Do you need a sponsor to apply for a stay permit in Indonesia? Please contact us! Need further information about KITAP in Indonesia? Click here

  Have a plan to import goods and products to Indonesia? If yes, some things need to prepare for the permit because Indonesia’s bureaucratic procedures are quite complex for trading compliance. Securing an Import License through OSS is not enough. Setting up a company in Indonesia is a must, which can take more than five months, even longer. Using under name import service in Indonesia will be more effective in cutting timeline, energy, and expenses.  This article will help give information regarding alternative methods to import goods using the under-name service in Indonesia.   What Is an Under Name Import Service? Username importer, known as the importer of record (IOR), is a legal entity registered in Indonesia responsible for all the documents and entry requirements for importing goods to the country. The under name import provider has official licenses and permits to carry out import activities registered under the Directorate General of Customs and Excise  an IOR will provide all entry documents needed for clearance through customs, payments for any levies, duties or fines, product certification, and classification, and other responsibilities, fall to the importer in Indonesia.   Benefits You Gain  Using this service can bring benefits for both companies and manufacturers related to import in Indonesia. The very first thing is there will be no issues with taxes and legal points since IOR is included as one of IOR’s responsibilities, so they will make sure everything is related to it. Next, importers or manufacturers who do not have the required documents and import approval from the authorities don’t need to bear custom risks of shipment delays and penalties. Lastly, benefits provided not limited to: The shipment clearance process becomes simpler. A transparent process that is fully in compliance with all export and import regulations It no necessary to establish an import legal entity in Indonesia just for importing purposes Lastly, Have a plan to set up a company in Indonesia? Please check this article first. Want to know more about the under-name import service in Indonesia? Please contact us.