Side business

[Ozric13]

Hi all

I'm new here so hope someone can help me.

I'm currently employed by an overseas company that have a small office here in Jakarta.

I'm registered for tax, I have my kitas paid for me, and have documents allowing me to work in Indonesia.

Ok good so far, now I partnered up with a local Indonesian as a consultant to her business, obviously I don't do the work for free and charge a small fee for my work.

My question is very simple, am I allowed by law to work for this side business, especially as I will be paying tax to the government.

Obviously if I'm not allowed then I'll have to find a solution as I'm due payment very soon.

I just need clarification as to whether I'm only allowed to work for the company that actually sponsors me to work here, or if it's ok to do a side business as long as tax is paid and the side work is declared.

All advice great fully appreciated as I don't wish to get in trouble.

Many thanks Alan

 

[snpark]

No absolutely not, its a big no no and very dangerous and they will find out

Regardless of how small or harmless you think it is and paying tax etc (how???) it is illegal
One sponsor one job, no part time, no freelance, no voluntary intern etc

Ironically you paying tax is probably how you will get caught when they wonder why you receive income from 2 seperate sources

 

[snpark]

BTW I would also change your name from Tospliff to avoid any negative connotations with dr*gs

 

[dafluff]

I'm currently employed by an overseas company that have a small office here in Jakarta.

I'm registered for tax, I have my kitas paid for me, and have documents allowing me to work in Indonesia.

Correction: The company that is currently sponsoring you has a permit to employ a specific foreigner (you) in Indonesia (called an IMTA). You have a work KITAS sponsored by the company, which in conjunction with the IMTA, allows you to work at this company, and only at this company. Important: You do not have a permit to work anywhere else in Indonesia (or start a side business, freelancing, etc).

Ok good so far, now I partnered up with a local Indonesian as a consultant to her business, obviously I don't do the work for free and charge a small fee for my work.

My question is very simple, am I allowed by law to work for this side business, especially as I will be paying tax to the government.

Obviously if I'm not allowed then I'll have to find a solution as I'm due payment very soon.

The answer is also very simple: no you are not allowed to do this.

 

[Ozric13]

BTW I would also change your name from Tospliff to avoid any negative connotations with dr*gs

Thanks for the advice, but the name has nothing to do with drugs, so if government are watching , I`m a good boy

 

[Ozric13]

Correction: The company that is currently sponsoring you has a permit to employ a specific foreigner (you) in Indonesia (called an IMTA). You have a work KITAS sponsored by the company, which in conjunction with the IMTA, allows you to work at this company, and only at this company. Important: You do not have a permit to work anywhere else in Indonesia (or start a side business, freelancing, etc).



The answer is also very simple: no you are not allowed to do this.

Ok, this seems clear enough, my fault for not finding out sooner, I guess I will just walk away from payment, however, this is related to a Kitas, what about if I was sponsored by my wife and then get a Kitap, or are there still stupid rules applied to me?

 

[mas_dam]

this is related to a Kitas, what about if I was sponsored by my wife and then get a Kitap, or are there still stupid rules applied to me?

Still the same.

 

[Ozric13]

Still the same.

Sorry for late reply

Can I ask why, if I drop the IMTA with my company and start up as a consultant, surely im allowed a salary from different projects, or am I still wrong here?

Many thanks

 

[fastpitch17]

Sorry for late reply

Can I ask why, if I drop the IMTA with my company and start up as a consultant, surely im allowed a salary from different projects, or am I still wrong here?

Many thanks

Droping your IMTA will basically make you non employable. A KITAP in any form does not give you rights to work. There are those that point to Indonesian laws that state everyone is entitled to work to support a family but those that have tried have only been somewhat helpful towards a business owned by their spouce. No advertising you, no schedule, and not on a payroll.

A KITAP is but a document issued so you can be in country. It has no bearing on any work. Immigration doesn't care if you work or not. That is a responsibility of manpower alone. They of couse can report you to immigration for breaking the law thus leading to deportation no matter who your sponsor is.

You would be best off just staying with your current employer with their IMTA aquired for you only. Stop the side hussle. I would suggest you change from employer sponsored kitas to spouse sponsored. The less you are beholding to an employer, the better. You would just need to pay for your own kitas, kitap.

 

[Ozric13]

OK a follow up to this

So I`m now on wife-sponsored KITAP, so I`m happy about that, I`m still with my company on IMTA.

So I have some contacts, one actually in Manpower, they have stated that it's not a problem with extra money coming in, this to me seemed shocking especially as everyone is saying its a big no no.

So maybe the issue is not with Manpower, so who would be the ones that would actually take action?

Cheers

 

[Hawk256]

So maybe the issue is not with Manpower, so who would be the ones that would actually take action?

Cheers

I think it would depend on if someone complained and how many connections they have. Other than overstay, the only time I have seen anyone have problems with Immigration is when money was involved and someone went to the authorities. I have heard of a couple of cases where people were caught in sweeps but I don't think the sweeps were random. Of course, I don't know about every case and the details of those cases, so this is just an observation from one person. Reality could be different.

 

[snpark]

Of course they will say you can, he is first in the queue for some cash when they come to arrest you

 

[Hawk256]

Of course they will say you can, he is first in the queue for some cash when they come to arrest you

I was thinking the same.