Home » Practical Information » Preparations for Moving to Indonesia » Legal Matters in Indonesia

Retirement in Indonesia

Visit the Living in Indonesia Expat Forum to ask your questions on Retiring in Indonesia

The warm climes of Indonesia have attracted the attention of retirees from colder climes. While many come for a one-month stay on a tourist visa, there is now a way to stay longer, on a retirement visa. Other important issues related to retirement are Purchasing Property, Indonesian income tax and Medical Care.

The retirement visa allows you to live in Indonesia, make multiple trips out of Indonesia during the year, open a local bank account, and get a drivers license, etc. You can NOT do work of any kind in Indonesia on this visa, nor can you legally work remotely with a company in another country on this visa.

Second Home Visa

Second Home Visa is available for foreign nationals who come to Indonesia as: Investors, Tourists,
Retired persons. Second Home Visa can also be applied for family, namely children, husband/wife, or parents.

Second Home Visas are granted for a period of five or ten years.

Applications are submitted via Online Visa Approval with the following requirements.

1. Passport with at least a 36 month validity.
2. Proof of funds in the form of an account in the name of the visa applicant or sponsor with a value of at least 2,000,000,000 IDR (two billion rupiah), or foreign currency equivalent
3. Colored photograph 4 cm x 6 cm taken on a white background
4. A curriculum vitae/resume of the person's career

Second Home Visa applications for family members are submitted by the applicant or sponsor by attaching the following additional documents.

1. Passport with at least a 36 month validity.
2. Colored photograph 4 cm x 6 cm taken on a white background
3. Copy of the Second Home Visa or Second Home Temporary/Limited Stay Permit (Izin Tinggal Terbatas/ITAS) held by husband, wife, children or parents, which is still valid
4. Proof of family relationship with the foreign national who holds a Second Home Visa or Second Home ITAS, in the form of:

a. Marriage certificate/book for husband/wife who holds Second Home Visa or Second Home ITAS; or
b. Birth certificate or family registry card (Kartu Keluarga) which states that the Foreign National is the parent or child of a Second Home Visa or Second Home ITAS holder, translated into Indonesian by a sworn translator. (Translation is not necessary if documentation is in English.)

Sponsor or Foreign Nationals can apply for a visa through the official website of the Directorate General of Immigration (www.imigrasi.go.id) or Online Visa Approval.

The application process should be completed within four working days, beginning after the payment is made.

The Second Home Visa fee is 3,000,000 IDR per person.

Legal Basis
1. Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 29 of 2021 on Visa and Stay Permit
2. Regulation of the Minister of Finance of the Republic of Indonesia Number 9/PMK.02/2022 Non-Tax State Revenue on Type and Tariff of Immigration Services in the Ministry of Law and Human Rights
3. Circular Letter of Acting Director General of Immigration Number IMI-0740.GR.01.01 of 2022 on Second Home Temporary/Limited Stay Permit and Visa Grant

Source: Immigration website

COMPARISON with Retirement Visas

Some comparisons of the Second Home and Retirement Visas

The cost for the Retirement Visa was US$150, but this is incomplete, because you also had to pay a visa agent for assisting you with the application – usually around Rp 14 million (almost US$1,000).

The Rp 2 billion guarantee that is required for the Second Home visa will be repaid to the applicant at a later date. The Second Home Visa costs Rp 3 million.

Since the cost is not limited to the Visa only, a more reasonable cost comparison would be:

Old Retirement Visa + KITAS + Re-entry Permit = approx. Rp 12 million per year (charged by visa agents).
Second Home Visa + 5 years KITAS + 5 years Re-entry Permit = Rp 21 million, or Rp 4.02 million per year

So, the Second Home visa option actually costs less per year – when not considering the Rp 2 billion guarantee.

On the down side, you’ll have to consider what you could earn on an investment of the frozen Rp 2 billion guarantee. But on the plus side, applicants would not need to depend on a sponsor nor need to make yearly visits to Immigration for the annual renewal.

Retirement Visa

The official name of the retirement visa is "Visa Tinggal Terbatas untuk Wisatawan Lansia Mancanegara" Indeks Visa 319. Lansia stands for lanjut usia (geriatic age).

A new Regulation (PerMen no. 22 Year 2023, 22 Aug 2023) specifically mentions the Retirement Visa under the Second Home Visa, and with different requirements:

Article 33
.........
2) Limited Stay Visa (ITAS) can be given to foreigners for:
.........
1. second home;
2. special skills;
3. world figures;
4. elderly aged 60 years or more; and
5. remote workers working for foreign companies

Article 61
(1) Application requirements for an one year Limited Stay Visa for foreigners aged 60 years or more are:
a. A minimum 6 (six) months valid passport;
b. proof of guarantee from the Guarantor;
c. proof of having living expenses for himself and/or his family while in Indonesia;
d. recent color photograph; and
e. other documents to explain the intent/purpose

(2) Other documents in paragraph (1) letter E are proof of income or allowance with value US$3,000 per month.
........

Article 62
(1) 5 years Limited Stay Visa Application for foreigners aged 60 years or more as referred to in Article 33...who will stay without a Guarantor need to attach:
a. A valid passport with at least six months validity;
b. proof of Immigration Guarantee
c. proof of having living expenses for himself and/or his family while in Indonesia;
d. recent color photograph; and
e. other documents to explain the aims/objectives.

2) Evidence of Immigration Guarantee as referred to in paragraph (1) letter B is in the form of a statement of commitment of saved funds with an account in the applicants name at state-owned banks worth at least US$50,000 or the equivalent that must be fulfilled within a maximum period of 90 days from the date of issuance of the Limited Stay Permit.

(3) Other documents as referred to in paragraph (1) letter E are proof of income or retirement benefits with value US$3,000 per month.

Retirement Visas - ITAS Lansia - Retirement Temporary Stay Permit

The Immigration Department has issued the long-awaited revisions to regulations that allow the granting of temporary stay permits for those over 55 years of age. This facility to provide renewable stay permits of one year's duration was originally announced and regulated in February 1998 and the law has undergone subsequent revisions and explanations in the regulations.

In the first few years after the regulations were issued few retirees were actually able to actually get the visa due to the strict requirements. Subsequent revisions brought the requirements within closer reach of the financial capabilities of more retirees.

Short Term Second Home Visas - May 2022 Update:

The government's intention is that ist would allow retirees to stay in Indonesia for 3-4 months a year only (when it is winter in their country) and would be valid for 5 years and renewable for 5 years. The applicant must show proof of Rp 2 billion for an individual or Rp 2.5 billion for a family.

Second Home Visa Fees:

Temporary Stay Visa "Second Home": Rp. 3 million
Temporary Stay Visa "Second Home" for dependents (husband/wife/children/parents): Rp. 2 million

5 years KITAS "Second Home": Rp. 12 million
5 years KITAP "Second Home": Rp. 15 million
Time Unlimited KITAP "Second Home": Rp. 30 million

5 years KITAS "Second Home" for dependents (husband/wife/children/parents): Rp. 3.5 million
5 years KITAP "Second Home" for dependents (husband/wife/children/parents): Rp. 5 million
Time Unlimited KITAP "Second Home" for dependents (husband/wife/children/parents): Rp. 15 million

5 years Re-Entry Permit "Second Home" : Rp6 million
5 years Re-Entry Permit "Second Home" for dependents (husband/wife/children/parents) : Rp1.5 million

This is NOT finalized yet and we'll post more information as we receive it. We're not sure if both the Second Home and the Retirement Visa of the past will both be offered.

Past Retirement Visa Requirements

We've included these as you may be asked for some of these in the course of the transition to the new visa regulartions. The retirement visa facility is intended to assist those wishing to spend their retirement in Indonesia and has the following requirements:

Applicant is 55 years of age or older
Applicant is retired
Possess a passport or travel documents with more than 18 months remaining validity
Copy of all passport pages
Eight passport photos 3x4 cm, taken with a red background
Twelve photos, 6x4 cm, taken with a red background
Curriculum vitae
Copy of marriage certificate, if married
Statement of living accommodation in Indonesia. Minimum cost of US$35,000 if purchased house/apartment or, a minimum rental cost of US$500/month in Jakarta, Bandung, and Bali; US$300/month for other cities in Java Island, Batam, and Medan, and other cities a minimum US$ 200/month.) in the tourist areas according to the regulations
Statement to declare intent to employ an Indonesian maid and/or driver whilst living in Indonesia
Payment of Immigration Fee based on effective regulations
Sponsor letter from the appointed travel agency, costs to be paid by applicant
Statement agreeing not to engage in business activities or work for a living. You MAY NOT WORK in Indonesia on this visa!
You may stay in Indonesia for one year on this visa, extendable up to five times (1 year each) for a maximum stay of five years. Extensions can be done without having to leave the country.
A statement letter of financial ability to rent an accommodation at for a minimum of US$500 per month in Jakarta or US$300 per month outside Jakarta. (You must sign a lease for housing with a minimum one year period.) Alternately you can supply proof that you own a house under an Indonesian spouse's name.

If only one spouse qualifies for a retirement visa, then that person can be the sponsor for a eITAS (semi-permanent residency - dependent visa index 317) for the dependent spouse that doesn't qualify. For example if she/he isn't 55 years old. In other words, both spousal applicants do NOT have to be 55, just one.

You can enter first on a visit visa and then after a month apply for the limited stay permit (ITAS). But you will need to leave the country, most commonly to Singapore, to finalize the new visa processing.

Indonesian Law & Regulations

The full titles of the regulations that govern retirement visas are:

Peraturan yang mengatur Keputusan Menteri Kehakiman RI No. M.04-IZ.01.02 tahun 1998 tentang Pemberian Visa dan Izin Keimigrasian bagi Wisatawan Lanjut Usia Mancanegara;

Lampiran Keputusan Dirjen Imigrasi No. F. 492-UM.01.10, April 18, 2002 tentang Petunjuk Pelaksanaan Pemberian Visa dan Izin Keimigrasian bagi Wisatawan Lanjut Usia Mancanegara.

Peraturan Pemerintah RI Nomor 31 Tahun 2013 Tentang Peraturan Pelaksanaan Undang-Undang Nomor 6 Tahun 2011 tentang Keimigrasian - Indonesian - English translation.

NEW Peraturan Hukum dan Hak Asasi Manusia Repblik Indonesia No. 22 Tahun 2023 tentang Visa dan Izin Tinggal - Indonesian

Watch this thread on the Expat Forum for discussions of the new visa requirements.

Steps after Retirement Visa Approval

Once you receive the written communication that your visa has been approved, you need to take this to the nearest Indonesian consular office (at a consulate or embassy) that has jurisdiction over the area you live in. Check with the embassy to see what other things you must need to provide with the confirmation document. This process can also be done at the Indoensian embassy in Singapore with the assistance of a local agent. Your visa agent in Indonesia should be able to help you make these connections.

After you return to Indonesia with the new stamp in your passport, you must present yourself to the Immigration office to complete the process. Just like other forms of semi-permanent residence, you'll need to have your photos and fingerprints taken at the immigration office.

Read through the other document requirements on our main Visas and Documents page.

Indonesian Income Tax for Retirees

Be advised that even on a retirement visa, according to government regulations you will be liable to pay Indonesian personal income tax on your global income, taxed at the rate of 5-30%, depending on your income. However, in practice, we haven't heard of anyone having to pay this tax on their global income.

The Indonesian government has been considering doing away with this requirement - as the worlwide income taxation discourages foreigners from retiring in Indonesia.

If the rule is applied, your country may allow credits due to double taxation.

ITAP for Senior Citizens

After extending the one-year limited stay permit (retirement visa) five consecutive times (5 years), foreign retirees can apply for a permanent stay permit visa (ITAP):

Application letter and guarantee from tourist travel bureau as a sponsor.
License (SIUP) and tax number (NPWP) of the travel bureau.
Appointment letter of travel bureau to handle the Foreign Senior Tourist.
Curriculum vitae.
Original and copy of valid passport
Four photographs, size 2x3 cm.
Statement of accounts, issued by Pension Fund Institution or bank/s declaring funds of not less than US$1,500/month are available to finance his/her stay in Indonesia.
Statement/evidence verifying actual stay at available accommodation facilities through the purchase or rental at minimum specified rates.
Statement to declare employment of Indonesian maid-servant during his/her stay in Indonesia.
The most recent, still valid, limited stay permit visa.

Exiting the Country

While you are residing in Indonesia on a Retirement visa, if you wish to leave the country for any reason, you must obtain an IMK/MERP (Multiple Exit Re-entry Permit) which is valid for 6 months or 1 year.

Naturalization for Senior Citizens

After obtaining an permanent stay permit (ITAP), citizenship or naturalization can be sought in a process requiring one year, based on the qualifications of the retiree.

Property Ownership for Foreigners

Changes to the laws in early 2010 are opening up some possibilities for financing of property purchases for retirees, see Buying Property in Indonesia

Pension/Social Security Funds

Retirees will need to decide how best to get their Pension/Social Security Funds transferred to them in Indonesia.

While there are retirees that chose to have their funds deposited directly into an Indonesian bank account, many others choose to have their funds transferred in an account in their home country and then just transfer money as needed to an Indonesian bank, or through ATM withdrawals, due to higher confidence in the foreign banking systems, and for tax reasons.

Factors to consider:

which remittance method has lower fees
what the currency exchange rate is
timing your transfer when the exchange rate is good

how long it takes you to get the money
what to do in case of emergencies
online access to accounts
if the transfer is paid out in Indonesia in your currency or Indonesian rupiah

See our article on Banking in Indonesia for more information on the banking system in Indonesia, transferring funds, credit cards, ATM, etc.

See info on US Social Security funds deposited direct to an Indonesian bank.

Information for UK retirees on State Pensions if you retire abroad.

A site that compares companies that transfer money internationally.

Household Shipments on a Retirement Visa

Indonesian Customs NO longer allows a privilege of free import duty to retirement visa holders. Import Duty Fees will apply to the shipment. The privilege of free import duty is provided by the Indonesian Customs one time only to those who are holding BOTH KITAS (residential permit) and IMTA (employment permit) with the validity of one year. Import Duty will apply to incomplete documents and/or the validity of less than 12 months. To obtain the free import duty facility, the customs clearance process must be within three months of your arrival to reside in Indonesia.

Indonesians returning to Indonesia require a "Surat Keterangan Barang Pindahan/Surat Keterangan Pindah" reference letter and certified (stamped) packing list from the local Indonesia Embassy. The shipment will not be cleared without the reference letter. List all items to be shipped and getting approval that this is in fact a household good shipment (as opposed to someone shipping in new goods to be sold). List the larger items (2 beds, 6 chairs) and smaller items can be grouped (2 boxes bedroom linens, 3 boxes children's books, etc.). This statement letter from the Consulate/Embassy will be stamped (consularized) and attached to the packing list in the shipping documents.

Shipments under the name of Indonesians married to a (non-employed) foreigner will need to obtain the reference letter from the local embassy and will need to pay Import Duty. The shipment will NOT be cleared without the reference letter from the consulate. This letter is consularized by the Consulate as proof of your overseas residence.

We suggest that you use "door to door" shipment services so that the moving company in Indonesia can sort out the paperwork and clearance for you. Just talk with your moving company in Indonesia first and discuss that that you are on a retirement visa/ITAS, so there won't be any working permit requirement applied for the shipment clearance.

Door to port shipping will be cheaper, but you'll have to deal with the customs officials yourself (not advised), or through a separately hired clearance Indonesian agent. Time your shipment so that it's not sitting in the Indonesian port facility for a long time, incurring storage charges.

Some of the Moving companies in Indonesia.

Worried about HOT Tropical Weather in Indonesia?

Here are the Indonaiesn cities with the coolest temperatures (due mostly to elevation)

- Mulia, Puncak Jaya, Papua (altitude 2'448 m)
- Lembang, Bandung, Jawa Barat (1'300 m - 2'100 m)
- Mamasa, Sulawesi Barat (max. 1'900 m , average 1'200 m))
- Berastagi, Karo, Sumatra Utara (1'300 m)
- Ciwidey, Bandung, Jawa Barat (1'200 m , ~ 44 Km from Bandung)
- Batu, Malang, Jawa Timur (700 m - 1'700 m)
- Ruteng, Manggarai, Nusa Tenggara Timur (1'200 m)
- Gayo Lues, Aceh (1'000 m)
- Baturraden, Purwokerto, Jawa Tengah (980 m)
- Padang Panjang, Padang, Sumatera Barat (650 m - 950 m)
- Waghete, Deiyai, Papua (max. ~ 15 degrees Celsius)
- Wonosobo, Jawa Tengah (max. ~ 18 degrees Celsius)

Interesting Retirement-related Sites

Frozen in Indonesia: Information for UK Pensioners in Indonesia

Retire Asia

Last updated November 10, 2023