Indonesia’s evolving visa landscape has presented foreign investors and digital entrepreneurs with several long-term stay options, most notably the KITAS (limited stay permit) and the newly introduced Second Home Visa. While both offer pathways to living and operating in Indonesia legally, they differ in terms of eligibility, benefits, and legal obligations. Choosing the wrong one could hinder your business flexibility and long-term goals.

What Is KITAS?

A KITAS (Kartu Izin Tinggal Terbatas) is a temporary stay permit that allows foreign nationals to live in Indonesia for 6–24 months. There are various types, including:

• Working KITAS: Sponsored by a PT PMA for foreign directors or employees.
• Investor KITAS: Available to PT PMA shareholders investing a minimum of IDR 10 billion.
• Dependent KITAS: For spouses or children of KITAS holders.

KITAS is often the visa of choice for those actively running or working in a business in Indonesia.

What Is the Second Home Visa?

Launched in late 2022 and gaining traction in 2024–2025, the Second Home Visa is a non-working visa designed to attract wealthy global citizens, retirees, or digital entrepreneurs seeking long-term residency without local income generation. It requires proof of funds (minimum IDR 2 billion or equivalent in assets).

Holders are allowed to stay for up to 10 years but are not permitted to work or earn income from Indonesian sources.

Comparing the Two Options

• Validity: KITAS is valid for 6 to 24 months and is renewable. Second Home Visa offers a much longer stay, from 5 to 10 years.
• Sponsorship: KITAS requires sponsorship, typically from a PT PMA or employer. The Second Home Visa does not require a local sponsor.
• Investment Requirement: An Investor KITAS requires a minimum of IDR 10 billion investment. The Second Home Visa only requires proof of IDR 2 billion in assets or savings.
• Work Eligibility: KITAS holders with a working or investor status are permitted to work. The Second Home Visa does not allow any form of work or income generation within Indonesia.
• Business Operation: KITAS permits active involvement in a PT PMA. The Second Home Visa does not allow direct commercial activities.

Strategic Implications for Entrepreneurs

• Choose KITAS if you plan to actively manage a PT PMA, hire staff, and engage in daily operations.
• Choose Second Home Visa if you are a passive investor, content creator, or digital entrepreneur working with clients outside Indonesia.

The Directorate General of Immigration has tightened enforcement on mismatched visa types. Working under a non-working visa (like the Second Home Visa) can result in deportation. Additionally, there’s increased cross-checking with BKPM and OSS databases to verify investor legitimacy.

Some entrepreneurs opt to enter Indonesia under a Second Home Visa while remotely managing a PT PMA through local directors. However, this requires careful structuring to avoid immigration or tax violations.

Understanding the legal boundaries of each visa type is crucial. Misuse not only jeopardizes your status but also your business. Consult with an immigration specialist or legal advisor in Lombok to ensure your long-term plans align with the correct legal framework.