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Zantara AI
AI Immigration Advisor
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Zantara AI
AI Immigration Advisor
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppEvery work KITAS in Indonesia is issued for a specific person, working in a specific position, at a specific company. This three-way link is not flexible, not transferable, and not expandable without formal government approval.
If you hold an E25B Director KITAS, you are authorized to work as Director of the company named on your KITAS. That is it. Not director of another company, not freelance consultant, not online entrepreneur on the side.
If you hold an E23 Employee KITAS, you are authorized to work in the role specified in your RPTKA for the company that sponsors you. Nothing else.
This restriction comes from Immigration Law No. 6/2011, Article 48: foreign workers may only hold positions or perform work as stated in their stay permit. Working outside this scope is classified as unauthorized employment, which carries serious penalties.
Many KITAS holders underestimate how broadly Indonesian law defines "work." Here is what the authorities consider unauthorized activity:
| Activity | Why It Is Unauthorized |
|---|---|
| Freelancing for overseas clients (while in Indonesia) | Work performed on Indonesian soil requires authorization |
| Running an unregistered side business | Business activity without NIB and proper KITAS |
| Paid consulting for other Indonesian companies | Work for a non-sponsoring entity |
| Teaching English or other paid tutoring | Employment outside your KITAS scope |
| Selling products at markets or online | Commercial activity not covered by your KITAS |
| Paid photography, videography, or content creation | Professional services outside your authorized role |
| Activity | Risk Level | Notes |
|---|---|---|
| Managing personal investments | Low | Passive investment is generally acceptable |
| Volunteer work at NGOs | Medium | Depends on the nature and duration |
| Unpaid board membership | Medium | May require separate authorization |
| Creating content on personal social media | Low | If genuinely personal, not commercial |
| Attending conferences as a speaker (paid) | Medium | One-off vs. regular activity matters |
| Remote work for your own overseas company | High | Still working on Indonesian soil |
| Activity | Why It Is Okay |
|---|---|
| Managing personal stock portfolio | Passive investment, not "work" |
| Renting out property you own | Passive income from assets |
| Receiving dividends from other companies | Shareholder rights, not employment |
| Personal blogging (non-commercial) | No commercial activity involved |
The consequences of being caught doing unauthorized work on a KITAS are severe:
If another company or client engaged you without proper authorization:
You might think: "Who would know?" Here is how authorities typically discover unauthorized work:
If you want to do more than what your current KITAS allows, here are the legitimate paths:
If you need to work for a second company, the legal route is RPTKA multi-position approval. Your primary company keeps sponsoring your KITAS, while the second company obtains its own RPTKA listing you.
Best for: Directors of multiple PT PMA companies Cost: Additional DKP-TKA of USD 100/month from the second company Timeline: 2-4 weeks for second RPTKA approval
If your side business idea has real potential, establish a proper PT PMA company for it. You would then use RPTKA multi-position to serve as director of both your existing company and the new one.
Best for: Entrepreneurs with a viable business concept Cost: PT PMA establishment (IDR 15-30 million) plus additional RPTKA/DKP-TKA Timeline: 4-8 weeks for company setup, 2-4 weeks for RPTKA
If your primary goal is investing rather than active management, consider converting to an E28A Investor KITAS. This allows you to be a shareholder without active work restrictions, though it requires minimum IDR 10 billion in shareholding.
Best for: Passive investors who do not need active management authorization Cost: E28A KITAS fees (no DKP-TKA required) Limitation: Cannot actively manage the company day-to-day
If you have multiple business interests, consider restructuring them under a single holding company where you serve as director. This consolidates your businesses under one KITAS sponsor.
Best for: Entrepreneurs with multiple related businesses Cost: Corporate restructuring fees plus potential tax implications Timeline: 2-3 months for full restructuring
If your "side hustle" is primarily online work for overseas clients, the E33G Remote Worker Visa might be more appropriate than a work KITAS. However, you cannot hold both an E33G and a work KITAS simultaneously.
Best for: Digital professionals earning from overseas Limitation: Cannot work for Indonesian companies on E33G
Verdict: Not allowed. Teaching yoga (for pay) is employment outside your authorized role. Even if it seems harmless, you are performing paid work not covered by your KITAS. If you want to teach, the yoga studio would need to sponsor you with a separate RPTKA, which creates the multi-position scenario.
Verdict: Not allowed. Operating an online business is commercial activity that requires its own business license (NIB) and is not covered by your employee KITAS. You would need to establish a PT PMA for the jewelry business.
Verdict: Risky gray area. Technically, performing any work on Indonesian soil requires authorization, regardless of where the client is. While enforcement is difficult for occasional remote consulting, regular paid consulting constitutes unauthorized work. The safe approach is to route this through your PT PMA.
Verdict: Depends on monetization. Creating personal content is fine. But if you monetize it (ad revenue, sponsorships, brand deals), you are earning income from an activity not covered by your KITAS. Serious content creators should establish a proper business entity.
Verdict: Generally acceptable. Passive rental income from owned property is not considered "work." However, if you are actively managing the property (handling guests, maintenance, marketing) rather than using a property manager, you are venturing into unauthorized business activity.
Bali Zero helps foreign professionals structure their business activities legally in Indonesia. Whether you need RPTKA multi-position setup, a new PT PMA for a side venture, or advice on restructuring your business holdings, we provide clear guidance based on current regulations.
Contact Bali Zero:
Do not risk your KITAS on a side hustle. Do it properly from the start.