Move with Family to Indonesia but keep foreign contract

jbattja wrote:

Hello there,

I'm currently living and employed in The Netherlands and plan to move with wife and kids to Indonesia (for at least 2 years) this summer.
My wife and kids have Indonesian passport but I do not (my passport is Dutch).

My current employer (Financial/Tech industry) has an entity in Europe and Singapore (among others), but not in Indonesia. They do allow me to keep working for the company remotely from Indonesia and is open for flexible solutions.
My wife is currently not employed.

So, here's the challenge I could use advise on:
What type of VISA should apply for?

A few models I was thinking about :
1.) Apply for a Family VISA without Indonesian work permit (but keeping foreign income).
- Is this allowed? Or does a family VISA require an Indonesian income?

2.) Open a company in Indonesia and apply for a work permit and visa through this company (and have my current employer hire this company)?
- Due to the high capital requirements of a PT PMA, it probably makes sense to for my wife to open the business on her name as a PT and have her 'hire me'. Is this viable?

3.) Keep foreign (potentially Singaporese) employment contract and fly back and forth to Singapore at least one day per month with a Multiple-Entry Business Visa.
- Due to COVID and strict quarantine requirements (of SG), this might not be a valid option.

Are any of the above viable options? Or are there better options I'm missing.

Really appreciate any guidance on this.

Thanks,
Joey

hi joey, I think the best uption for u is open a local PT on the name of ur wife, with family visa the foreigner spouse is not allowed to have an indipendent job, only help the wife in her business, but without a salary, and as u said, the third option is not possible, not only in covid time, but also in normal time.
As an employer of a Local Company, PT, the limitations to hire foreign experts depends on the capital of the company. In accordance to the regulation No. 40 of the year 2007, employers of a Local Company, PT can only hire a foreign expert from Medium and Large but not for Micro and small companies in Indonesia.
Micro     Capital less than IDR 50 million     Cannot hire foreign experts
Small     Capital of IDR 50 – 500 million     Cannot hire foreign experts
Medium     Capital of IDR 500 million to 10 billion     Can hire foreigners, additional limitations depending on industry
Large      Capital of IDR 10 billion     Can hire foreigners, same as foreign owned companies.
the procedure require many steps, but u can find it with google or consulting a good agency.
the foreigneigne must be hited in a position that cannot be filled by an indonesian, here is a link to the positions allowed for foreigner, starting from page 8 and diveded by sectors, The requirements are a degree and at least 5 years proved experience.
http://www.iccc.or.id/wp-content/upload … 019_OK.pdf
Good luck with ur plan, keep us updated.

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Fred wrote:

There is an option if you want to do remote business/work.

Get a wife sponsored KITAS, then work remotely. As long as there is no physical presence in Indonesia, it should be fine.
However, make sure you're safe by telling immigration exactly what you're doing. They aren't daft, so a man spending money here without any of the negatives isn't going to be much of a worry for them.
As for KITAS applications and income, I'm a bit out of date so hopefully others can answer, but it always used to be immigration asking for proof of ability to live without working for people they thought needed checking. I was never asked for so much as a bank statement.

Unfortunally, due there Is not yet a specific Visa for remote workers, often immigration Is very severe with foreigner, many cases of deportation for that reason, I would not take thet riisk, nor tell them that Im working without a proprer Visa, as I said with a family Kitas the foreigner spouse cannot do any work, only help the wife if she have her own business, but without a salary paid.
No proof of enough money in the Bank account Is required to apply for a family Kitas.

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Fred wrote:

As I mentioned, I'm out of date, but there have been a lot of noises about allowing digital nomads/remote workers to operate from Indonesia on any type of valid visa.
The rules were designed to protect Indonesian workers, not to stop people spending money they earn from abroad.
I suspect, especially with the situation as it is now, the OP could ask immigration about working online whilst on a wife sponsored KITAS and be told to get on with whatever he wants.
It assists the Indonesian economy, but causes absolutely no harm.

Fred wrote:

As I mentioned, I'm out of date, but there have been a lot of noises about allowing digital nomads/remote workers to operate from Indonesia on any type of valid visa.
The rules were designed to protect Indonesian workers, not to stop people spending money they earn from abroad.
I suspect, especially with the situation as it is now, the OP could ask immigration about working online whilst on a wife sponsored KITAS and be told to get on with whatever he wants.
It assists the Indonesian economy, but causes absolutely no harm.

U have too faith in Indonesian immigration, they are not a charity organism, they follow the laws, and the law is clear, any foreigner cannot work in Indonesia without a proprer Visa, and acrually there is not yet a Visa for remote workers.
Of course if u are here for holiday u can take care of Ur business abroad, but the OP Is planning to leave here, and the point is that working illegaly mean thet he will not pay the taxi, wich Is inaccettabile for immigration.
So, its really a bad idea to say to immigration that u want to run a remote work without a working Visa and not paying the taxi, its the best way to turn on a red light upon ur head!!!

Anyway, there Is a new project about a 5 years Visa wich Will include also Digital nomads or remote workers whatever u want call them, the requirement Is a deposit of142.300 USD for a single Person!!!
https://www.travelinglifestyle.net/indo … al-nomads/

Hi Marcello and Fred,

Thanks so much for your answers. It's much appreciated.

By far the easiest and cheapest way forward would be to get a wife sponsored KITAS and keep my foreign income. Like Fred said, in the context of the law, it shouldn't be any issue (I'm not stealing any Indonesian job and will spend money in Indo), but Marcello points out, immigration might look at it more black and white.

I've also called a Visa agent who claimed there is no work permit needed when I'm not employed by an Indonesian company (e.g. see here: https://www.letsmoveindonesia.com/spous … use-kitas/).

I'll do a bit more research on this and will let you know if I find out more.

Thanks,
Joey

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jbattja wrote:

Hi Marcello and Fred,

Thanks so much for your answers. It's much appreciated.

By far the easiest and cheapest way forward would be to get a wife sponsored KITAS and keep my foreign income. Like Fred said, in the context of the law, it shouldn't be any issue (I'm not stealing any Indonesian job and will spend money in Indo), but Marcello points out, immigration might look at it more black and white.

I've also called a Visa agent who claimed there is no work permit needed when I'm not employed by an Indonesian company (e.g. see here: https://www.letsmoveindonesia.com/spous … use-kitas/).

I'll do a bit more research on this and will let you know if I find out more.

Thanks,
Joey

Unfortunally, thats a grey area, not yet regulated, the point Is taxtation, immigition
will always pur u in troble for that, they are not angels and its not enough that u spend money in the country, they want u also pay tac here, forcing the law that state a foreigner cannot do any job without the proper Visa. rimember that u must pay taxi in the country where u live more than 6 months, its called tax domicile.
Indonesia Is not a Land of fairy tales, so never talk with immigration of u are not sure that what u are doing is 100% legal, Fred Is indonesian, of course he dont have problems with immigration,for them is easier, almost all small warungs and street food are allowed to oprate withouy any license, for foreigner Is another music.

Hi Marcello,

I don't mind to pay tax in Indonesia, there is a tax treaty between NL and ID, so indeed if I live more than 6 months in Indonesia, I should pay tax in ID (and not in NL anymore). It's actually beneficial for me.