Introduction
Moving to Indonesia offers exciting opportunities for expatriates who are seeking both professional growth and a vibrant lifestyle. With a population of more than 270 million people, Indonesia is the largest economy in Southeast Asia and one of the most attractive destinations for foreign professionals and entrepreneurs. The country is known for its diverse culture, warm hospitality, and dynamic cities such as Jakarta, Surabaya, and Bali, which provide a balance of modern infrastructure and traditional heritage.
For many expatriates, relocating to Indonesia means gaining access to a wide range of opportunities in sectors such as technology, energy, manufacturing, education, and tourism. Indonesia’s strategic location also makes it an important hub for international business, trade, and investment. At the same time, living in Indonesia offers a unique lifestyle experience, from the fast-paced business culture of Jakarta to the relaxed atmosphere of Bali’s beaches and cultural centers in Yogyakarta.
However, moving to Indonesia requires careful preparation. Foreign nationals must arrange valid immigration permits, secure appropriate housing, understand healthcare options, and comply with tax and employment regulations. Without proper planning, expatriates may face unnecessary delays, administrative challenges, or compliance risks. This guide provides a step-by-step explanation of what expatriates should prepare before and after arriving in Indonesia to ensure a smooth transition.
For professionals and entrepreneurs who plan to establish a business in Indonesia, creating a Foreign Investment Company, legally known as Perseroan Terbatas Penanaman Modal Asing (PT PMA), is often the best option. Working with an experienced consultancy such as MAM Corporate Solutions ensures that the process of setting up a company is compliant with Indonesian law and aligned with long-term business goals. By combining legal compliance with strategic advice, expatriates can focus on building careers, expanding networks, and enjoying the full experience of living and working in Indonesia.
Visa and Immigration Requirements for Expatriates in Indonesia
The very first and most important step for expatriates who are planning on moving to Indonesia is to secure the correct visa and residence permit. Without the proper documentation, foreign nationals cannot legally live, work, or establish a business in the country. The Indonesian government regulates these permits through the Directorate General of Immigration of Indonesia, and all applications must also be consistent with data registered under the Online Single Submission licensing platform.
There are several types of visas and permits available, each serving a different purpose depending on the expatriate’s situation.
1. Limited Stay Permit (KITAS)
This is the most common type of permit for expatriates who are employed by a company in Indonesia. It is sponsored by a local employer, representative office, or corporate entity. The Limited Stay Permit allows the holder to legally reside and work in the country for a period of up to one year, with the possibility of extension.
2. Investor Limited Stay Permit (Investor KITAS)
This option is designed specifically for foreign investors or business owners who wish to establish a legal entity in Indonesia, known as a Foreign Investment Company in Indonesia. By holding an Investor Limited Stay Permit, foreign nationals can not only manage their company but also legally reside in the country. This permit reflects the Indonesian government’s support for attracting international investment while ensuring proper compliance.
3. Dependent Limited Stay Permit (Dependent KITAS)
Family members of the main permit holder, such as spouses and children, can apply for a dependent visa. This type of permit allows them to live in Indonesia legally but does not grant the right to work. It is an important consideration for expatriates who plan to relocate with their families, ensuring that dependents can access healthcare, education, and housing legally.
4. Permanent Stay Permit (KITAP)
For expatriates who have already lived in Indonesia for several years under a Limited Stay Permit, the next step is applying for a Permanent Stay Permit. This document grants the right to reside in Indonesia on a long-term basis, usually for a period of five years, and it can be renewed. The Permanent Stay Permit is generally reserved for expatriates who have demonstrated strong ties to Indonesia, such as through marriage, business ownership, or long-term employment.
The visa and immigration process in Indonesia can be complex and time-consuming. It requires careful coordination between the expatriate, the sponsoring company or representative, and the government authorities. Incorrect documentation, inconsistent information, or failure to align with the Online Single Submission platform can lead to costly delays or outright rejections.
For expatriates, ensuring that immigration requirements are met is the foundation of a smooth relocation. For foreign investors, combining immigration compliance with the establishment of a Foreign Investment Company in Indonesia provides not only legal residence but also full access to Indonesia’s dynamic business opportunities.
Finding Accommodation in Indonesia
Housing options vary depending on the city:
Healthcare and Insurance
Expatriates generally prefer private hospitals and international clinics, especially in Jakarta and Bali, for higher-quality care.
- Health Insurance: International insurance is strongly recommended.
- Public vs Private: Public hospitals are available but less popular with expatriates due to language and service limitations.
The Ministry of Health regulates hospitals and medical device approvals. Having insurance that covers emergency evacuation is advisable for those living in remote areas.
Working in Indonesia
Indonesia’s business culture values relationships, hierarchy, and respect.
- Language: Bahasa Indonesia is the official language. English is common in business, but learning basic Indonesian builds stronger relationships.
- Work Culture: Meetings often begin with informal conversation before business discussions.
- Compliance: Employers must follow labor laws, minimum wage rules, and expatriate hiring quotas.
To avoid mismatches, many businesses align employment reporting with Tax Compliance Services in Indonesia provided by MAM Corporate Solutions.
Education for Expat Families
Expatriates moving to Indonesia with children can choose from a range of international schools in Indonesia, particularly in Jakarta and Bali.
- Jakarta Intercultural School (JIS)
- British School Jakarta (BSJ)
- Green School Bali
Most schools follow International Baccalaureate (IB), Cambridge, or American curricula. Tuition fees are high, so budgeting for education is essential.
Banking and Finance
Expatriates moving to Indonesia need a local bank account to manage expenses. Major banks include BCA, Mandiri, and BNI. Requirements usually include a KITAS, passport, and proof of local address.
Tax residency applies if you stay in Indonesia for more than 183 days within 12 months. The Directorate General of Taxes provides guidance on expatriate tax obligations.
Lifestyle and Culture
Indonesia offers a mix of modern city life and traditional culture.
- Cost of Living: More affordable than Singapore or Hong Kong, especially for food and domestic services.
- Etiquette: Respect elders, dress modestly in conservative areas, and remove shoes before entering homes.
- Leisure: Bali’s beaches, Yogyakarta’s heritage, and hiking in Java provide diverse options for expatriates.
Common Challenges for Expatriates
- Traffic Congestion: Jakarta faces severe traffic; ride-hailing apps like Gojek and Grab are popular.
- Bureaucracy: Lengthy processes may frustrate newcomers; local consultants help streamline.
- Language Barriers: English is limited outside major cities.
- Cultural Adjustment: Work styles and communication may take time to adapt to.
Key Takeaways
✅ Expatriates need the correct visa and permits before working.
✅ Housing, schooling, and healthcare require early planning.
✅ Tax, employment, and compliance must align with regulations.
✅ Cultural awareness is essential for successful integration.
Frequently Asked Questions: Moving to Indonesia as an Expatriate
No, expatriates cannot legally work in Indonesia without first obtaining the appropriate work permit and Limited Stay Permit (KITAS). Both documents are mandatory under Indonesian immigration law and are regulated by the Directorate General of Immigration of Indonesia. Working without a valid permit may result in deportation, fines, or a ban from re-entering the country.
For foreign professionals who also plan to invest or establish a company, applying for an Investor Limited Stay Permit through a Foreign Investment Company in Indonesia provides both legal residence and the ability to actively manage a business.
The cost of living in Jakarta, Indonesia’s capital city, varies depending on lifestyle and housing choices. On average, expatriates can expect to spend between 1,500 United States Dollars and 3,000 United States Dollars per month. This includes expenses such as accommodation, utilities, transportation, dining, and international schooling for children.
Foreigners are not permitted to own freehold property in Indonesia. However, they are allowed to lease property for long-term use or acquire property rights under the Hak Pakai scheme (Right to Use). Hak Pakai grants legal usage rights over land and property for a specific duration, typically up to 30 years with possible extensions.
More detailed information is available through the National Land Agency of Indonesia, which regulates land and property ownership rights. For expatriates setting up businesses, securing office or commercial property under a Foreign Investment Company (PT PMA) structure is often the most compliant and strategic route.
Yes, health insurance is strongly advised and, in many cases, required for expatriates living in Indonesia. International health insurance ensures that expatriates have access to private hospitals and high-quality medical care, especially in large cities such as Jakarta, Surabaya, and Bali. Without proper coverage, medical costs can be significant, particularly for emergency treatment or specialist care.
Expatriates should also review coverage options with the Ministry of Health of Indonesia to understand mandatory requirements and recommended health standards. Companies relocating staff should consider corporate insurance plans that align with Indonesian compliance rules.
Yes, Indonesia is generally safe for expatriates. Major cities such as Jakarta and Bali are home to large expatriate communities and offer modern infrastructure, international schools, and vibrant cultural experiences. However, as in many urban environments, expatriates are advised to remain cautious about petty theft, traffic safety, and to respect local cultural practices and traditions.
Staying informed through reliable resources such as the Indonesia Travel Advisory by the Ministry of Foreign Affairs helps expatriates prepare for local conditions. Working with MAM Corporate Solutions for relocation planning also ensures a smoother and safer transition into the Indonesian lifestyle.
How MAM Corporate Solutions Can Support
Moving to Indonesia is more than a career move — it is a lifestyle transformation. With proper planning for visas, housing, healthcare, education, and compliance, expatriates can thrive in one of Asia’s most dynamic markets.
Contact MAM Corporate Solutions today or fill in the form below for assistance with visas, company formation, tax compliance, and tailored expat support in Indonesia.
- Define the mission and
- Ensure compliance with laws and consult legal
- Prepare sufficient capital (especially for foreign founders).
- Establish a transparent governance
- Set up efficient systems for fundraising and donations.
- Stay compliant with tax and reporting obligations
