Top Legal Documents Every Expat Needs to Live Safely in Indonesia

Indonesia, with its breathtaking islands, rich cultural heritage, and affordable lifestyle, has long been a magnet for expatriates. Bali, in particular, continues to attract retirees, digital nomads, entrepreneurs, and families who want to enjoy life in paradise. But while moving to Indonesia may sound like a dream, it requires navigating a legal landscape that can be complex for newcomers.

For expatriates, having the right legal documents is not just a matter of formality—it is essential for living safely, avoiding legal trouble, and securing a stable life. From residency permits to business registration and property ownership, these documents provide legal certainty and protect you from unexpected risks.

In this guide, we’ll walk through the top legal documents every expat needs to ensure a smooth and lawful stay in Indonesia.

1. Residency Permits: KITAS and KITAP

The first and most important legal requirement for expatriates is a valid residency permit. Indonesia does not allow foreigners to stay long-term without the proper visa, and overstaying can lead to fines, deportation, or even blacklisting.

KITAS (Kartu Izin Tinggal Terbatas)

A KITAS is a limited stay permit, valid for 1 or 2 years, and extendable. Depending on your situation, you can apply for different types:

• Retirement KITAS: For foreigners aged 55+ who wish to retire in Indonesia.
• Investor KITAS: For business owners or shareholders managing companies in Indonesia.
• Working KITAS: For foreigners employed by Indonesian companies.
• Family KITAS: For foreigners married to Indonesians or dependents of KITAS holders.
• Remote Worker KITAS: For digital nomads working for companies outside Indonesia.

KITAP (Kartu Izin Tinggal Tetap)

A KITAP is a permanent stay permit, usually valid for 5 years, and extendable. It is typically available after holding a KITAS for a certain period, making it the most stable option for long-term expats.

Without a valid KITAS or KITAP, your stay in Indonesia remains temporary, leaving you vulnerable to visa runs, overstays, and legal risks.

2. Business Documents: NIB/OSS, PT PMA, PT PMDN, CV

Many expatriates in Indonesia are not just retirees—they are entrepreneurs, investors, and freelancers who want to run businesses legally. Operating a business without proper permits is risky and can lead to fines or forced closure.

PT PMA (Foreign-Owned Company)

For foreigners who want to legally own and operate a business in Indonesia, a PT PMA (Perseroan Terbatas Penanaman Modal Asing) is required. It allows partial or full foreign ownership with a minimum capital of IDR 10 billion.

PT PMDN (Local-Owned Company)

If you’re setting up a business with Indonesian partners, you may use a PT PMDN. This structure requires all capital to come from Indonesian citizens or legal entities.

CV (Commanditaire Vennootschap)

A CV is a simpler business structure commonly used by local entrepreneurs. While foreigners typically cannot be listed as owners, some expats choose to collaborate with Indonesian partners through this setup.

NIB (Business Identification Number) via OSS

No matter the structure, businesses must have an NIB (Nomor Induk Berusaha), issued via the OSS (Online Single Submission) system. This serves as your official business identity number, required for licensing, taxes, and compliance.

3. Property Documents: Land Certificate, PBG, and SLF

Many expats dream of owning a villa or running a business property in Bali. However, land and property ownership in Indonesia is heavily regulated, and missteps can result in losing your investment.

Land Certificate (Sertifikat Tanah)

The Land Certificate is proof of ownership or rights to land, issued by the National Land Agency (BPN). For expats, direct freehold ownership is restricted, but there are legal pathways such as:

• Hak Pakai (Right to Use)
• Hak Guna Bangunan (Right to Build)
• Hak Sewa (Leasehold Agreements)

Always ensure the property you buy, lease, or invest in has a clear land certificate to avoid disputes.

PBG (Building Permit)

The Persetujuan Bangunan Gedung (PBG) is the modern replacement for the IMB (Izin Mendirikan Bangunan). It ensures that any construction, renovation, or alteration is legal and compliant with building regulations.

SLF (Function-Worthy Certificate)

The Sertifikat Laik Fungsi (SLF) certifies that a building is safe and fit for use. For commercial buildings, having both PBG and SLF is mandatory before operation.

4. Environmental and Utility Permits: SIPA and SLO

Depending on your project or property, you may also need environmental or utility-related permits.

SIPA (Groundwater Utilization Permit)

If you extract groundwater for residential, commercial, or industrial use, you must have a SIPA. This ensures your usage complies with environmental standards and avoids penalties.

SLO (Operation Worthy Certificate for Electricity)

An SLO certifies that your electrical installation is safe and compliant with technical regulations. Without it, you may face difficulties in connecting to PLN (the national electricity provider).

5. Exit Permits: EPO and ETK

At some point, expats may need to end their stay in Indonesia, whether temporarily or permanently. In these cases, exit permits are required to deactivate your KITAS properly.

• EPO (Exit Permit Only): For KITAS holders still in Indonesia who plan to leave and cancel their permit.
• ETK (Exit Tidak Kembali): For KITAS holders who are already outside Indonesia and need to deactivate their KITAS remotely.

Failing to process an exit permit can complicate future visa applications.

6. Supporting Legal Documents for Expats

Aside from the major categories above, expatriates should also consider:

• Curriculum Vitae (CV): Required in most visa and KITAS applications.
• Bank Statements: Proof of financial capability, usually with minimum balances such as IDR 30,000,000.
• Marriage Certificates (translated): Needed for Family KITAS applications.
• Company Documents: For Investor KITAS or PT PMA setup.

These supporting documents tie into larger applications and ensure compliance during the approval process.

7. Why Proper Documentation Matters

Many expats are tempted to cut corners by overstaying tourist visas, renting properties informally, or running unregistered businesses. While it may seem easier in the short term, the risks are high:

• Heavy fines and deportation for visa violations.
• Loss of property due to invalid ownership structures.
• Business closures and legal sanctions.
• Complications when applying for future visas or permits.

Having the right legal documents provides peace of mind, stability, and long-term security in Indonesia.

Living in Indonesia is a dream for many expatriates, but dreams can quickly turn into nightmares without the right legal foundation. From residency permits like KITAS/KITAP to business licenses, property certificates, and exit permits, every document plays a crucial role in ensuring your stay is safe and lawful.

At Bali Legal Hub, we specialize in guiding expats through these complex legal processes with:

• Over 5 years of immigration and business experience.
• End-to-end support for visas, permits, and certificates.

A trusted office based in Ubud with convenient pick-up and delivery services.