When Investor Visa was offered about 2 years ago, I took it up because I won't need work permit and my ITAP will be unlimited. The required minimum investment then was 10 billion. 2 years later, I have to renew my 2-year Multiple Exit Re-entry Permit, the fee was 8 million for unlimited validity this time. After paying, I received an email asking me to increase minimum investment to 15 billion. What's going on? I'm applying for MERP (now called Izin Masuk Keluar), I'm not reporting ITAP (still 3 years to go). I was told that my status will be "downgraded" from Investor to a Director position if my investment isn't increased. I feel like I'm being scammed, the retroactive application of this rule is inequitable. How can they change the rules for people who were already on Investor Visa BEFORE the new requirements started? Other countries would have transitional provisions (grandfather clause) allowing an existing situation to continue under "old rules". Is there such clause in Indonesia? Does anyone have a similar experience?
INFORMATION AND COMMUNITY FOR EXPATS IN INDONESIA
Grandfather Clause for existing Investor KITAP holders
- Thread starter guido
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Just to advance you that it is the first time I hear about something like that in more than 17 years participating almost every day in Forums for expats in Indonesia .
And , as far as I understood , there is at least one member here who recently (less than 1 year ago) converted a Retirement ITAS to ITAP under the old rule , when the new rule started being used since 2 years ago .
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I got an unlimited KITAP which stated to report in 5 years, my company is a PT PMA.
From https://www.hukumonline.com/klinik/...m-hukum-kontrak-di-indonesia-lt6826abda6a316/
Title : Grandfather Clause Regulation in Indonesian Contract Law
By Muhammad Raihan Nugraha, S.H. , Mei 2025
... Application of the Grandfather Clause in Indonesia
As a clause in a contract, the legal basis for the application of a grandfather clause is related to contract law as stipulated in the Civil Code/KUH Perdata. Essentially, contracts are governed by the principle of freedom of contract, as stipulated in Article 1338 of the Civil Code, which states:
"All agreements made in accordance with the law apply as law for those who make them. Such agreements cannot be revoked except by mutual agreement of the parties, or for reasons determined by law. Agreements must be executed in good faith"
... Furthermore, ... a grandfather clause must be included in any new regulation that amends an existing one. One such regulation governing grandfather clauses is Government Regulation 5/2021, specifically the provisions contained in Article 562 letter a of Government Regulation 5/2021, as follows:
"When this government regulation comes into effect, the provisions for implementing risk-based business licensing stipulated in this government regulation shall be exempted for business actors whose business licenses have been approved and become effective before this government regulation comes into effect, including those requirements that have been met, unless the provisions in this government regulation are more advantageous to the business actor." ...
Title : Grandfather Clause Regulation in Indonesian Contract Law
By Muhammad Raihan Nugraha, S.H. , Mei 2025
... Application of the Grandfather Clause in Indonesia
As a clause in a contract, the legal basis for the application of a grandfather clause is related to contract law as stipulated in the Civil Code/KUH Perdata. Essentially, contracts are governed by the principle of freedom of contract, as stipulated in Article 1338 of the Civil Code, which states:
"All agreements made in accordance with the law apply as law for those who make them. Such agreements cannot be revoked except by mutual agreement of the parties, or for reasons determined by law. Agreements must be executed in good faith"
... Furthermore, ... a grandfather clause must be included in any new regulation that amends an existing one. One such regulation governing grandfather clauses is Government Regulation 5/2021, specifically the provisions contained in Article 562 letter a of Government Regulation 5/2021, as follows:
"When this government regulation comes into effect, the provisions for implementing risk-based business licensing stipulated in this government regulation shall be exempted for business actors whose business licenses have been approved and become effective before this government regulation comes into effect, including those requirements that have been met, unless the provisions in this government regulation are more advantageous to the business actor." ...
Are you accessing the evisa sponsor's account yourself or you hire a visa agent ?
Because , from evisa.imigrasi.go.id , the present investment visas are not tied to KITAP . Usually Indonesian Visas are tied to KITAS .
Besides that we usually can get a time unlimited KITAP only after extending a 5 years KITAP .
Don't you remember the Visa code , like E28A , E28B , .. ?
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The company hires the visa agent. Before my unlimited KITAP, I was on 5-year KITAP, and before that, KITAS. I obtained Investor Visa after investing the required amount into the company. Don't remember the visa code, but I arrived as a foreign worker (not investor). I only invested in the company because I was told I'd get permanent residence (unlimited stay) without requirement for work permit. So imagine how I felt when the government was going back on the deal after putting down the money.
With a visa agent in the middle , things become complicated .
If you got an Investor Visa about 2 years ago when you were on work KITAP , you would have needed to : get an EPO/Exit Only Permit (to cancel your work KITAP) , leave Indonesia , come back with the Investor Visa then get the Investor KITAS (you could not have a time unlimited KITAP now) . Do you know what the visa agent did so you continued with a KITAP ?
And did you create a new PT PMA or did you invest (became a shareholder) in the PT PMA where you were working ?
Who told you ?
Email from who ?
Who told you ?
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Before my current ITAP (which is unlimited), I was on 5-year Work ITAP as a director and one of the shareholders. So before validity of my Work ITAP ended, our visa agent informed me that I could get unlimited KITAP next time but must increase my shareholdings in the company to qualify as Investor. After consulting other shareholders, I decided to increase my shares by pumping funds into the company. A General Meeting of the Shareholders (RUPS) was held and deed notarized. Then application was made during the renewal process, and I got my current KITAP which shows Date to Report, not Date of Expiry. Agent said my status is now Investor, without needing to EPO. How can I check what my status really is (Investor or Work)? But for sure, I don't need Work Permit now.
The email is from immigration when my IMK is being processed, but it was my agent who informed me about the downgrading. By the way, I see in the Stay Permit Invoice that below Applicant Information, the Stay Permit Purpose stated "INVESTMENT". And just to be sure the invoice is for IMK, under Billing Information, the Billing Code and Information Details stated "Re-Entry Permit for an Unlimited Period: IDR 8.000.000".
And thinking of it, why would immigration ask me to increase investment if I'm on Work Visa? Surely that's because my status is Investor, but under the "old rules". That's why I want to know if there is Grandfather Clause in the "new rules". It will be very much appreciated if you can confirm this. All existing Investor KITAP holders (with shares between 10 and 14 billion) will be safe* if there is Grandfather Clause. *worry-free during KITAP reporting or applying for Re-entry Permit.
It seems that your agent did (on behalf of your boss) just a "Change Data" option of your work ITAP (see below) .
-----------------------------------
From https://evisa.imigrasi.go.id/front/stay-permit/product-selection , at my sponsor's account , at the option "Change Data" of my ITAP , there is NOW the following sub-option :
"Concurrent Activity To General Investment"
1. Permitted To ...
2. Other Information
a. You will automatically obtain the electronic occupation change report from immigration.
b. Duration of stay permit will follow the period of stay permit will follow the previous period.
...
3. Stay Permit Validity
a. Need apply for stay permit.
4. Document Requirement
...
c. Other documents to explain the purpose/purpose of the foreigner's arrival, such as:
- Proof of share ownership of at least IDR 10,000,000,000.00 (ten billion rupiah) or the equivalent stated in the ministry or agency data in the investment sector;
...
Probably your KITAP's copy informs at "Activity" .
Or you can either ask the visa agent (who control the sponsor's evisa account) to show your ITAP's data ; or ask your designated local Kantor Imigrasi .
Up to now , I could not find the subject in the Regulations . I suggest you to ask your local Kantor Imigrasi or , if you are in Jakarta , ask the Immigration Directorate/Izin Tinggal's Director (Jl. H.R. Rasuna Said, Kav. X6, No. 8, Kuningan, Jakarta Selatan) .
What I can say is that at https://www.expatindo.org/community/threads/switching-sponsor.8211/#post-113702 , Centurion said in post no.3 : "... but to work in the PMA without work permit as a director you will need minimum 15 billion Rp in personal shares for KITAP, and 10 billion Rp in shares for KITAS.
Anything less than that will require a work permit."
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Thanks marcus. But as I said, it was minimum 10 billion before (15 billion was not in the picture yet at that time). That's why I need to know if there is Grandfather Clause or not.
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Assuming it is true and you cannot do anything about , and you don't want to invest Rp5 billion more , I suggest you to just let the PMA pay the work permit as usual (only US$1'200 per year + agent's fee) .
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It’s not just about investing additional 5 billion or the work permit or the $1.200, it’s a matter of principle and trust.
A Matter of Principle (Non-Retroactivity): In most robust legal systems, there is a principle called "lex prospicit non respicit" the law looks forward, not backward. Applying a new financial requirement to investors who have already fulfilled their obligations is a violation of Legal Certainty. For a country to be a viable destination for Foreign Direct Investment, investors must be able to trust that the "rules of the game" will not be changed after investment has been sunk.
A Matter of Trust (Sovereign Risk): From an investment standpoint, this is a massive red flag. Trust is the "currency" of international relations. If a country demonstrates that it may not honor its long-term commitments, it will inevitably deter future high-net-worth individuals and institutional investors from contributing to the nation’s growth.
"Grandfather Clause" must be implemented to protect the status of those who have already fulfilled the investment requirements under the previous legal framework.
Well , according to the article in post no.5 from a reputable website , it is clear that it is in the Indonesian Civil Law , and up to now I didn't see any proof that it is not being respected in your case . Besides that , in Indonesia and all over the world , things are rarely perfect .
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In Asia ?
You must be joking ?
And I have 30 years experience in that region.
I'm sorry, you can laugh at it but I can't. Thanks anyway for sharing your experience.
Beware then to all would-be investors, permanent residents, Golden Visa holders, Global Citizenship of Indonesia.
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What is Grandfather Clause in Indonesian? Is it "tidak berlaku surut"? Is "tidak berlaku surut" written in the "new rules"?
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Article 28I paragraph (1) of the 1945 Constitution guarantees that the right to life, not to be tortured, freedom of thought and conscience, religion, not to be enslaved, to be recognized as a person before the law, and not to be prosecuted on the basis of retroactive laws are human rights (HAM) that cannot be reduced under any circumstances (non-derogable rights).
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