The Founder's Guide to Working from Indonesia

One of the most common questions at BSTC events: "How do I actually set up legally here?" It's a fair question. Indonesia's visa and business landscape has improved dramatically but still requires careful navigation.

This guide covers the practical options for foreign founders building from Bali in 2026. It's not legal advice: always consult a local immigration lawyer for your specific situation: but it's the framework that most founders in our community use.

Visa Options for Founders

B211A Business Visa (Most Common Starting Point)

What it is: A single or multiple-entry visit visa for business purposes. Duration: 60 days, extendable up to 180 days. Cost: $150-300 (through a visa agent). Good for: Testing the waters. Attending events, meetings, exploring the ecosystem before committing.

Key notes:

• Does not permit employment with an Indonesian company
• Suitable for remote work for a non-Indonesian entity
• Easy to obtain through a visa agent
• Can be extended without leaving the country

KITAS (Limited Stay Permit)

What it is: A work/stay permit, typically sponsored by an Indonesian company (PT PMA). Duration: 1-2 years, renewable. Cost: $1,500-3,000 (including agent fees and IMTA work permit). Good for: Founders who've set up an Indonesian entity and are committing long-term.

Key notes:

• Requires a sponsoring Indonesian company (your PT PMA)
• Includes IMTA (work permit): you're legally employed by your own company
• Allows you to open Indonesian bank accounts, sign contracts, etc.
• Annual reporting requirements

Golden Visa (Indonesia's Newest Option)

What it is: A long-stay visa for high-value investors and talent. Launched 2024. Duration: 5-10 years. Cost: Varies based on category (investment amount or talent qualification). Good for: Funded founders or investors who want a long-term base.

Qualification paths:

• Investment: Invest in Indonesian companies or bonds (thresholds vary)
• Talent: Demonstrate expertise in technology, digital economy, or other priority sectors
• Founders: Some categories specifically target tech entrepreneurs

Key notes:

• Relatively new: processes are still being refined
• Consult a specialist immigration lawyer for current requirements
• Significant cost but eliminates the annual renewal headache

Second Home Visa

What it is: A 5-year stay visa for individuals with proof of savings. Duration: 5 years. Cost: Processing fees + proof of $130,000+ in savings or income. Good for: Founders who don't want to set up an Indonesian entity but want long-term residency.

Key notes:

• No work permit included: you'd still work for a non-Indonesian entity
• Good for remote founders who just need a stable legal base
• Simpler than KITAS/PT PMA setup

Company Structures

PT PMA (Foreign-Owned Company)

What it is: An Indonesian limited liability company with foreign ownership. When you need it: If you want to operate commercially in Indonesia, hire local staff, or invoice Indonesian clients.

Setup requirements:

• Minimum 2 shareholders, 1 director, 1 commissioner
• Minimum capital depends on business sector (typically $70,000-$140,000 stated capital, though actual paid-up capital can be lower)
• Business licensing (NIB via OSS system)
• Registered office address in Indonesia

Cost: $2,000-5,000 for setup (through a legal/corporate service provider). Timeline: 4-8 weeks.

Key considerations:

• Required for KITAS sponsorship
• Required for local invoicing and contracts
• Annual reporting and compliance requirements
• Some sectors have foreign ownership restrictions

Offshore Entity + Remote Work

What it is: Keep your company registered elsewhere (Singapore, Australia, US, UK) and work remotely from Bali. When to use it: If you sell globally and don't need to invoice Indonesian customers.

Common combinations:

• Singapore Pte. Ltd.: clean corporate structure, tax treaties, VC-friendly. 1-2 weeks to set up.
• Australian Pty Ltd: good for Australian founders maintaining ties.
• US LLC/C-Corp: if raising US venture capital, a Delaware C-Corp is standard.

Key considerations:

• You still need a valid Indonesian visa
• Indonesian tax obligations may apply if you're a tax resident (183+ days/year)
• No ability to hire Indonesian employees directly
• Simpler compliance than PT PMA

Tax Considerations

Important: If you spend 183+ days per year in Indonesia, you may be considered a tax resident and subject to Indonesian personal income tax on worldwide income.

What most founders do:

• Consult with both an Indonesian tax advisor and their home-country tax advisor
• Structure their affairs to be tax-efficient across jurisdictions
• Use a PT PMA or offshore entity appropriately
• Keep clean records of days in-country

We strongly recommend: Engaging a local tax advisor before you reach the 183-day threshold. The BSTC community has several recommended advisors: ask at any event.

Practical Tips from the Community

Based on hundreds of conversations with founders at BSTC events:

1. Start with a B211A. Don't over-commit before you know Bali is right for you. The B211A gives you 6 months to test the ecosystem.

2. Use a reputable visa agent. Don't DIY your visa. A good agent costs $100-200 extra and saves you hours of confusion. Ask in the BSTC WhatsApp group for recommendations.

3. Don't set up a PT PMA until you need to. Many founders operate with an offshore entity for 1-2 years before incorporating locally. Only set up a PT PMA when you have a specific Indonesian business need.

4. Keep clean records. Days in-country, income sources, expenses. Indonesian tax authorities are modernising and compliance is increasingly enforced.

5. Budget for professional advice. Spend $500-1,000 upfront on a good immigration lawyer and tax advisor. It prevents $10,000+ problems later.

6. Join the community. The fastest way to navigate Indonesia's legal landscape is to learn from founders who've already done it. BSTC's WhatsApp group regularly shares updated visa information, agent recommendations, and legal advisor referrals.

Useful Resources

• Indonesian Immigration (DGIM): Official visa information
• OSS (Online Single Submission): Business licensing portal
• BKPM (Investment Coordinating Board): Foreign investment guidance
• BSTC Community: Ask in the WhatsApp group: founders share real-time visa and entity advice

---

This guide is informational, not legal advice. Always consult a qualified immigration lawyer and tax advisor for your specific situation. Join the BSTC community to connect with founders who've navigated the process.