Working as a Digital Nomad in Indonesia - Tourism Indonesia

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Friday, February 24, 2023

Working as a Digital Nomad in Indonesia

The Indonesian government announced in 2021 that digital nomads with foreign-sourced income would be granted 5-year digital nomad visas without taxation. An announcement of an Indonesia Digital Nomad Visa is intended to attract over 3.6 million overseas travelers to explore the country’s spiritual retreats and ecotourism over the next year.

Source: pinterest

 

Unfortunately, information pertaining to the visa fee, income verification requirements, application process, and requirements is still in process. Nevertheless, this article will be updated when new developments happen.

Benefits of Working as a Digital Nomad in Indonesia

The upcoming Indonesian digital nomad visa will offer the following benefits:

  • Tax-free. Digital nomads will not have to pay any taxes if their income comes from abroad in Indonesia. 
  • The length of the visa. The validity of the Indonesia digital nomad visa is five years. Compared to other countries that offer digital nomad visas, the validity of the Indonesian digital nomad visa is the longest to date.
  • Attractions to visit. Indonesia offers something for everyone. Discover some of the most stunning coral reefs in the world, sunbathe on gorgeous beaches, or trek in search of endangered orangutans.
  • Low costs of living. Indonesia has one of the lowest living costs in all of Southeast Asia. For a family of four, the estimated monthly costs without rent are $1,521.55, whereas, for a single person, the estimated monthly costs without rent are $435.70. Other prices include:
  • Meal, inexpensive restaurant – $1.69
  • Meal for two people (mid-range restaurant, three-course) – $16.91
  • One-way ticket (local transportation) – $0.34
  • Monthly pass (regular price) – $10.15
  • Basic utilities per month – $60.37
  • Apartment (1 bedroom) in the City Center – $264.10
  • Apartment (1 bedroom) outside of Center – $161.28
  • Apartment (3 bedrooms) in the City Center – $620.68
  • Apartment (3 bedrooms) outside the Center – $371.35

How to Apply for an Indonesia Digital Nomad Visa?

The application process is not official yet. However, you once the visa is launched, you should expect to follow these steps:

  1. Prepare the documents you need. You can find the list of the documents you might need in the section “Requirements for Indonesia Digital Nomad Visa”.
  2. Make an appointment with the Indonesian embassy. Find the nearest Indonesian embassy and make an appointment with them.
  3. Go to the appointment. At the appointment, you should submit the required documents. 
  4. Pay the fees. As of yet, there is no information about the visa’s cost. We will update this article as soon as new information is posted by the Indonesian government.
  5. Wait for approval. No details have been released regarding how long it will take to process a digital nomad visa in Indonesia. Despite the fact that the visa is still in the works, processing times will likely be faster.

In addition, depending on your nationality, you might need a visa to enter Indonesia.  

Requirements for Indonesia Digital Nomad Visa

The requirements to apply for Indonesia digital nomad visa are:

  • A valid passport. The validity of the Indonesian passport is six months.
  • Proof you will work remotely. You must work remotely for clients outside Indonesia to be eligible for this type of visa.
  • Proof you meet the minimum income requirements. There will likely be a set minimum income requirement to qualify for an Indonesian digital nomad visa. 

See the general Indonesia visa requirements here.

How Long Can I Work in Indonesia as a Digital Nomad?

The validity of the Indonesia digital nomad visa is five years.

Processing Time For A Digital Nomad Visa in Indonesia

The details on how long it will take for the digital nomad visa in Indonesia to be processed have not been announced. Even though the visa is still in the works, you can expect faster visa-processing times.

How Much Does the Indonesia Digital Nomad Visa Cost?

There is still no information about the cost of the visa. As soon as the government of Indonesia posts any new information, this article will be updated. 

Paying Taxes as a Digital Nomad in Indonesia

Indonesia has a variety of taxes that individuals, companies, and investors need to pay. These taxes include corporate income tax, individual income tax, withholding taxes, international tax agreements, value-added tax (VAT), luxury-goods sales tax, customs & excise, tax concessions, and land & building tax. 

  • The tax rate of individual income tax up to 50 million IDR (Indonesian Rupiah) is 5%
  • The tax rate of individual income tax over 50 million IDR to 250 million IDR is 15%
  • The tax rate of individual income tax over 250 million IDR to 500 million IDR is 25%
  • The tax rate of individual income tax over 500 million IDR is 30%
  • The withholding tax rate for interest, dividends & royalties is 15%
  • The withholding tax rate for services is 2%
  • The withholding tax rate for land and building rental is 10%
  • The withholding tax rate for payment to non-residents is 20%
  • The normal rate of corporate income tax is 25%
  • The tax rate of VAT is 10%
  • The luxury-goods sales tax rate is between 10 to 125%
  • The highest rate of customs & excise is currently set at 40%

Digital nomads in Indonesia will not be liable for any taxes if their income does not come from Indonesia. 

Other Options for Indonesia Visa 

Until there is more information on the Indonesia digital nomad visa, you can check other visas that Indonesia offers.

  • Indonesia Tourist Visa.  Depending on your nationality, you might not need a tourist visa at all. Because their visa policy is very tolerant, you might be exempt from the visa requirements. 
  • Indonesia Business Visa. For foreigners planning to attend meetings, and conferences, sign a deal, or do any other business-related activity, an Indonesia business visa is issued. The only restriction is that you cannot work or become employed by an Indonesian company.
  • Indonesia Work Visa. Indonesian work visas can only be obtained if you have a sponsor (employer) in Indonesia who can assist you in the process. Obtaining a work permit and visa is a lengthy and bureaucratic process that can take months.
  • Indonesia Student Visa. An Indonesia Student Visa is required for international students who wish to study in Indonesia.
  • Indonesia Retirement Visa.  If you wish to reside in Indonesia as a retiree, you need to apply for an Indonesian Retirement Visa. An Indonesian retirement or travel agency must sponsor your application for a retirement visa.
 (Source: https://visaguide.world/digital-nomad-visa/indonesia/)

 


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