How To Get Residency in Indonesia: A Comprehensive Guide
Capital: Jakarta
Population: 284,973,643 (2024，4th)
Ethic Group: Over 1,300 ethnic groups
Area: 1,904,569 km2 (14th)
Offical Language: Indonesian
Currency: Indonesian rupiah (As of July 25th, 2025, 1 IDR = 0.000061USD)
GDP per Captial (PPP): $17,612 (2025, 103rd)
Human Development Index: 0.728 (2023, 113rd)
Country Profile:
Indonesia, located in Southeast Asia, is the world’s largest archipelago nation, comprising over 17,000 islands.
It’s a populous country, ranking as the world’s fourth-most populous nation and Southeast Asia’s largest economy. By international exchange rates, it stands as the 16th largest economy globally and is the only G20 member state in the region.
Currently, Indonesia is the world’s largest Muslim-majority country, with 87% of its population identifying as Muslim.
Visa & Immigration System:
If you’re a foreigner looking to settle in Indonesia, the first step is typically to apply for an Indonesian KITAS (Kartu Izin Tinggal Terbatas), which is a temporary stay permit.
Common types of Indonesian KITAS include student visas, work visas, family reunion visas, and retirement visas. These permits are usually valid for one year and can be extended for up to five years, serving as the initial step for foreigners residing in Indonesia.
Indonesia’s retirement visa is particularly well-known globally, with a core requirement of maintaining an $18,000 USD deposit in a local bank.
It is important to note that this retirement visa program is only open to 54 countries and regions wordwide.
Recently, the Indonesia Government have introduced two residency by investment program options:
Indonesia Second Home Program:
With this program, you’ll need to transfer 2 billion Indonesian Rupiah, approximately $130,000 USD, into Indonesia. This sum can either be deposited in a local bank or used to purchase property, granting you a residency permit for up to 10 years.
A key benefit of the Indonesia Second Home Program is that it doesn’t have any minimum stay requirements—as long as your investment is maintained, so is your visa. Unlike similar programs, such as Malaysia’s, the Indonesian Second Home Program also offers participants the eligibility to apply for local permanent residency after accumulating a certain period of stay.
Indonesia Golden Visa:
This program requires a minimum investment of $350,000 USD in exchange for a renewable 5-year or 10-year long-term residency permit in Indonesia.
Currently, the Indonesian Golden Visa offers two main investment pathways: establishing and operating a company in Indonesia, or purchasing Indonesian government bonds or company shares.
Tax Implication:
Indonesia’s current tax system comprises both central and local taxes. The central government holds the primary authority for tax legislation and collection, while local governments have some power to set certain local tax rates. Key taxes include Corporate Income Tax, Individual Income Tax, Withholding Tax, Value Added Tax (VAT), Luxury Goods Sales Tax, Property Tax, and Stamp Duty.
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Value Added Tax (VAT): Effective 2025, the VAT rate will increase from 11% to 12%. This applies to most goods and services, including sales and imports.
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Corporate Income Tax: The standard rate is 22% and applies to a company’s taxable income.
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Withholding Tax: This applies to various transactions with non-residents or foreign entities, with specific rates varying by transaction type.
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Luxury Goods Sales Tax: This is an additional tax levied on high-end products, with some adjustments slated for implementation in 2025.
Permanent Residency & Citizenship:
After legally residing in Indonesia for three consecutive years, foreigners become eligible to apply for ITAP (Permanent Residency).
Foreigners who have continuously resided in Indonesia for five years, or whose cumulative stay totals more than 10 years, may be eligible to apply for Indonesian naturalization (citizenship), provided they meet other requirements.
Passport Power:
Indonesia does not recognize dual citizenship. Its passport currently ranks 64th globally. Indonesian citizens enjoy visa-free or visa-on-arrival access to 76 countries and regions worldwide as of July 23, 2025.
Useful Links:
Indonesia Directorate General of Immigration：https://www.imigrasi.go.id/en/
Indonesia Visa Online Platform：https://evisa.imigrasi.go.id/
Indonesia Investment Coordinating Board：https://www.bkpm.go.id/en/home