DPKK Exemption for Investor Stay Permits

Indonesia has long been a hotspot for foreign investment, offering rich natural resources, a growing consumer base, and strategic location in Southeast Asia. To further attract and retain investors, the Indonesian government has made significant reforms, including offering key immigration incentives. One of the most notable is the exemption of DPKK payments for holders of Investor Stay Permits (KITAS and KITAP). This move marks a major shift in how foreign investors can operate within the country and comes with real advantages for business people looking to establish a presence in Indonesia.

What is DPKK?

DPKK stands for Dana Pengembangan Keahlian dan Keterampilan, or the Skill and Development Fund. It’s a mandatory contribution required from employers who hire foreign workers in Indonesia. Typically, the fee is USD 100 per month per expat employee, paid in advance for the duration of the work permit. It’s designed to offset the cost of foreign expertise by investing in local workforce training.

For years, all foreign work permit holders—including investors—were subject to DPKK. However, this posed a financial burden on small and medium-sized enterprises or individual investors seeking to enter the Indonesian market.

The Game-Changer: DPKK Exemption

In a bid to streamline foreign investment, the Indonesian government issued Regulation No. 8/2021 and related implementing policies that exclude certain visa categories—especially investor KITAS/KITAP holders—from DPKK obligations. These are typically tied to investment positions such as Directors or Commissioners listed in a company’s legal documentation (deed of establishment and amendments).

This means that if you’re an investor who holds a KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit) under an investment-related title, you are no longer required to pay the USD 1,200 annual DPKK fee. This applies regardless of whether you’re actively earning income or only holding an oversight position.

Who Qualifies?

To benefit from the exemption, the investor must:

• Hold shares in a local PT PMA (foreign-owned company)

• Be appointed as a Director or Commissioner in that company

• Hold a stay permit under the Investor Visa category (Index 313/314)

• Not be hired as a technical or operational employee

It’s important to note that the DPKK exemption only applies to investor stay permits. If you’re working under a standard employment visa, or if your role is more technical than managerial or ownership-related, the DPKK fee still applies.

How to Apply for an Investor KITAS Without DPKK

The application process involves submitting your company’s legal documents, investment proof, and your appointment as a Director or Commissioner. Once approved, the immigration system automatically classifies you as DPKK-exempt, streamlining the process and reducing overhead.

Conclusion

The DPKK exemption for investor stay permits is a strategic win for both the Indonesian government and foreign investors. It removes a significant cost barrier, encourages long-term commitment, and simplifies the legal process. For anyone looking to establish or expand a business in Indonesia, this exemption isn’t just a technical detail—it’s a green light to move forward with more confidence and lower costs