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  • Company on Kitap

    I am now in process of upgrading my kitas to kitap.I do fairly understand how work here works.

    1) Kitap isn't imta, but I know with kitap I can start small business, without option to hire employees etc. But I don't know what are the limitations. Do they think like I can open warteg or warung or I can start company building websites.

    2) There is mention in law that if my wife (warga negara Indonesia) open her business like a PT I can help her run the business without breaching any laws. Is this true?

    3) Can my wife open a bar on her name but I would actually run the place. The profit will go on her name also but as a family I would use the money too. Does it count as my salary or it's kust like jajan?

    Thank you for input

  • #2
    Originally posted by Yaan-jan View Post
    1) ... I know with kitap I can start small business, ...

    2) There is mention in law that if my wife (warga negara Indonesia) open her business like a PT I can help her run the business without breaching any laws. Is this true?

    3) Can my wife open a bar on her name but I would actually run the place ...

    3a) as a family I would use the money too. Does it count as my salary or it's kust like jajan?

    1) It is your Indonesian wife the one who can start a small business (no foreigner can) . I would add that you would need a prenup or pos-nup separated wealth for that , but it seems that in practice this detail has been forgotten .

    2 & 3) You can only help informally (holding KITAS or KITAP sponsored by your wife) . The details you better ask your local Manpower's Government Office and/or through their website (see below) .

    3a) You cannot be registered as an employee , if this is what you mean by having a salary .


    http://tka-online.kemnaker.go.id/kontak.asp (how to contact Manpower)


    ------------------------------------------


    (free translation from http://percaindonesia.com/catatan-so...-7-maret-2015/ about acceptable work situations for foreigners married with Indonesians stated by Manpower Department's officers)
    [.....
    A) Holders of KITAS/KITAP sponsored by spouse are allowed to work in the (PT) companies with Work Permit (IMTA).
    B) Foreigner workers cannot work in two different companies (the same profession or different) EXCEPT investor / commissioner of PT PMA (If one works in three companies , the number of IMTA must also be 3).
    C) If the activities of the foreign worker are in more than 1 place / province then he/she must have inter-provincial IMTA .
    D) Case: Husband / wife of a mixed marriage with cuisine chef background want to open a small cafe, with a small seating area is classified as a small business and does not require IMTA. When this business grows crowded and large, than it is necessary to have operating permits from the relevant authorities . When the businesses becomes a legal entity, then this foreign worker must have IMTA.
    E) Case: Foreign husband of a mixed marriage is already retired. Enters Indonesia with Visa-On-Arrival and becomes an investor in a hotel in Bali. Once in a while he does work behind the scenes such as checks on the financial control department. With such conditions, it means the husband has been conducting work in Indonesia and must have KITAS and IMTA, because even not all the time he is working .
    F) A foreigner in a mixed marriage with KITAS/KITAP sponsored by Indonesian wife. Working from home and having online businesses. Does not have an office and legal business such as PT or PT PMA. Because this foreigner is conducting work even though he only works online so this foreigner must have the IMTA. This foreigner also cannot sign work contracts in Indonesia on behalf of himself .
    G) A foreigner who works and own business as an acupuncturist, must obtain an official recommendation from the local health office before doing business and work activities. If already have a recommendation from the relevant authorities, the foreign must have the IMTA to be able to work in Indonesia .
    H) A foreigner holder of KITAS/KITAP sponsored by spouse is allowed to work in Indonesia. The need of IMTA is to be seen from what the job, working for a legal entity or not, small or large business .

    CONCLUSION:
    Although the Immigration Law no.6 of 2011 Article 61 states that the holder of a KITAS/KITAP sponsored by Indonesian spouse can work and/or do business to make ends meet for him/her and/ for his/her family, but still has to refer back to the Labour Law no.13 year 2003 and Permenakertrans no.12 year 2013, which essentially mean that a foreign worker in a mixed marriage is allowed to work without a work permit/IMTA if in the informal sector, freelance or have a small business which is not a legal entity. When working in a legal entity then MUST have IMTA.]

    Note : The above refers to foreigners holding KITAS or KITAP sponsored by the Indonesian spouse , but it is also valid to foreigners holding ex-Indonesian KITAP (see Article 61 of UU no.6 , 2011)
    Last edited by marcus; 1 week ago.

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    • #3
      This is nice example of poorly defined law I will just continue to work as a freelancer online for Europeans using my foreign account untill I get clear word from MOM about what is line between small and crowded business and what exactly I can do withy my KITAP to meet ends.

      I ment more this:
      ​​​​​​my wife open legal business.. Can i help there? Aka doing marketing, cleaning after closing hours etc. without taking any salary. Just helping my family running business - to make ends meet or does this example follow example E - foreigner invest in Bali?

      But thank you for your help. I already had a problem here with authorities and it was hell. I mean situation was solved successfully without persecution, but it was long and stressful.

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      • #4
        Originally posted by Yaan-jan View Post
        (a) This is nice example of poorly defined law ...

        (b) I ment more this:
        my wife open legal business.. Can i help there? Aka doing marketing, cleaning after closing hours etc. without taking any salary. Just helping my family running business - to make ends meet or does this example follow example E - foreigner invest in Bali?

        (c) ... I already had a problem here with authorities and it was hell. I mean situation was solved successfully without persecution, but it was long and stressful.

        (a) In my view , the Law is clear , but as usually Laws are in Indonesia , they are made to have Regulations with the details to implement what is in the Laws . But in this case neither Immigration nor Manpower Department seems to want to issue a Regulation to implement that specific Article of the Immigration Law .

        (b) From what I understood , you could do that if your wife opens a CV business type (or lower) , but not if a PT type business (PT is the type that is allowed to hire foreigners with a Work Permit + KITAS - CV type or smaller cannot hire foreigners) .

        (c) We would appreciate if you tell us about the problem and how you solved it .
        Last edited by marcus; 1 week ago.

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