Indonesia has long attracted foreign investors, entrepreneurs, and global companies with its dynamic economy, diverse talent pool, and strategic location in Southeast Asia. In recent years, Bali in particular has emerged as a hub for digital nomads, remote startups, and impact-driven business founders.
However, a significant policy update in 2024 has reshaped the landscape for foreigners who want to live and work in Indonesia through the Investment KITAS (E28A). The new requirements are much more demanding, prompting many to explore alternative visa and hiring options.
In this guide, we’ll walk you through:
- What changed with the Investment KITAS
- Viable alternative visas for remote workers and foreign professionals
- How to legally hire Indonesian employees without establishing a company
- Why Employer of Record (EoR) is the smartest, most scalable solution
Why Indonesia Continues to Attract Foreign Talent and Investment
Indonesia remains one of Asia’s most promising markets. Its combination of economic resilience and digital expansion makes it an attractive destination for startups, remote teams, and global businesses looking to establish a presence in Southeast Asia.
Key reasons to consider Indonesia:
- Fast-growing economy with steady GDP growth
- Booming digital sector—IT and e-commerce continue to scale rapidly
- 74.6% internet penetration forecast for 2025, supporting remote and hybrid work models
- Large, youthful population fueling domestic demand
- Favourable timezone overlap for global operations
Why Bali?
Bali offers unique advantages for founders and remote professionals:
- Lower operational and living costs
- A thriving entrepreneurial ecosystem with coworking spaces and accelerators
- A lifestyle that supports work-life balance
- Access to both local and international talent
- Strong community of expats and digital entrepreneurs
The New Investment KITAS (E28A) Requirements
Previously, the Investment KITAS was a popular choice for foreigners setting up a PT PMA (foreign-owned company) in Indonesia. It allowed investors to live and manage their business in the country without needing a work permit.
As of 2024, the requirements have changed significantly. To qualify, you must now:
- Hold IDR 10 billion in personal shares
- Establish a company with a minimum capital of IDR 10 billion
While this visa remains a strong option for well-capitalised investors, it’s increasingly out of reach for early-stage entrepreneurs, bootstrapped startups, and small international teams.
Understanding Your Business Entity Options: PMA vs PMDN
When setting up a company in Indonesia, the structure you choose determines your flexibility and compliance obligations.
| PT PMDN (Local-Owned) | PT PMA (Foreign-Owned) | |
| Ownership | 100% Indonesian | Partial or full foreign ownership |
| Sector access | Unrestricted | Some sectors restricted (Negative List) |
| Capital requirement | IDR 50M-1B | IDR 10B paid-up minimum |
| Ability to hire expats | Only at IDR 1B+ capital | Built-in ability to employ foreigners |
For foreigners, a PT PMA is typically mandatory, unless you partner with local shareholders or use an EoR model to employ people without forming your own entity.
Visa Alternatives if the Investment KITAS Isn’t an Option
If you don’t meet the new investment thresholds or simply want to explore more flexible pathways, several alternatives allow you to legally live, work, or test the market in Indonesia.
1. Working KITAS (E23)
This visa is for foreign professionals or shareholders who are actively employed by an Indonesian company (either their own PT PMA or via an Employer of Record).
Key Features:
- Allows legal employment and income
- Valid for 6–12 months, renewable
- Requires company sponsorship and work permit (USD 1,200/year)
- Supports dependents
- Can transition to a KITAP after 3 years for Director/Commissioner roles
Best for: Foreign professionals or consultants working directly with an Indonesian company or via EoR.
2. Remote or Freelance KITAS (E33G)
Designed for remote workers employed by overseas companies, this KITAS allows you to live in Indonesia without needing a local employer or investment.
Key Features:
- No work allowed with Indonesian companies
- Valid for 1 year with multiple entry
- No KITAP transition pathway
- Limited support for dependents
Best for: Digital nomads with stable income from abroad.
3. Pre-Investment Visa (D12)
This is not a KITAS but a business visit visa ideal for early-stage market exploration.
Key Features:
- Valid for 1–2 years with 60–180 day visits
- Suitable for meetings, feasibility studies, and research
- No income or work allowed
- Cannot sponsor dependents
Best for: Founders and teams assessing Indonesia before launching operations.
The Most Flexible Hiring Solution: Employer of Record (EoR)
Many founders and foreign companies want to hire top Indonesian talent without the overhead of forming a PT PMA or navigating complex visa systems. That’s where an Employer of Record (EoR) becomes the most powerful solution.
What Is an Employer of Record?
An EoR is a legally registered entity in Indonesia that hires employees on your behalf. While you manage the employee’s day-to-day responsibilities, the EoR handles:
- Payroll
- Taxes
- Employment contracts
- Work permits
- HR compliance
It’s a fully legal structure that allows you to grow a local team quickly—without setting up a company yourself.
Why Use an EoR Instead of Setting Up a PT PMA?
- Speed: Hire legally in as little as 2–5 business days
- Savings: Avoid the upfront cost of IDR 10 billion capital + administrative overhead
- Compliance: Stay aligned with Indonesian labour laws and immigration regulations
- Simplicity: Focus on business growth while your EoR handles the admin
This is especially valuable if you:
- Are testing the Indonesian market
- Want to hire a few key local employees
- Operate remotely but need an on-the-ground presence
- Don’t want the complexity of long-term visa management and reporting obligations
At Livit, we’ve supported hundreds of foreign entrepreneurs and global teams by acting as their trusted EoR partner—offering a local foundation backed by over a decade of experience.
Choosing the Right Path Forward
With the new Investment KITAS rules in place, choosing the right setup depends on your specific goals:
- Are you exploring business opportunities or ready to operate?
- Do you need to hire local staff now or in the near future?
- Is your capital ready for investment, or are you still in the early stages?
For many remote professionals, entrepreneurs, and growing companies, a Working KITAS + EoR approach offers the perfect balance: full compliance, operational flexibility, and significantly lower costs than establishing a local entity.
And if you’re not yet ready to work or hire, a Pre-Investment Visa or Remote KITAS may provide just the right amount of access while you plan your next move.
How Livit Can Help
If you’re navigating Indonesia’s evolving visa landscape, unsure about how to hire, or wondering whether setting up a PT PMA is worth the cost—you’re not alone.
At Livit, we support international founders, remote-first companies, and impact-driven entrepreneurs by offering:
- Visa guidance and strategy
- Employer of Record services
- Talent acquisition and HR solutions
- Local expertise and ongoing support
We don’t just offer legal compliance—we help you build your vision in Indonesia, without the red tape.
If you’re considering your next step, exploring options, or want to hire quickly and legally, our team is here to help you assess the best path based on your unique needs and growth goals. Schedule a discovery call here or send an email to our team.
