If a foreigner is neither married to an Indonesian nor making a living in Indonesia, it’s still possible to stay in the country for a prolonged period of time on a so-called retirement visa (ITAS Lansia).

The retirement visa allows you to live in Indonesia and make multiple trips abroad including to your native country during the year, but it is prohibited to do any kind of work in Indonesia on this type of visa.

The Directorate General of Immigration can grant temporary stay permits for foreigners over 55 years of age.
Requesting such a retirement visa must be done via a licensed agency which acts as your sponsor and will process your application.
Those retirement agencies are appointed by the Department of Tourism; you cannot submit a retirement visa application by yourself without the ‘sponsoring’ of an approved agent.

Note that also on a retirement visa, you will be liable to pay personal income tax on your global income according to Indonesian regulation. In practice, this does not happen however.*
Nevertheless, in case you should get notified by the Indonesian tax office, then contact the tax authorities in your country of origin to avoid double taxation if you already pay income tax over there.

* Regulation may be subject to change, due to fiscal amendments.

A foreigner with spouse a/o children in Indonesia should have a testament (last will) for arranging his/her heritage.
In case the expat also has family a/o assets in the country of origin, like real estate and children from a former marriage, it is advisable to also have a last will in place in your native country.
Both wills should refer to each other and drawn up by a notary as a so-called ‘back-to-back’ testament.
This shall give you the most security to execute your last will and the best legal protection in case the testament is disputed.

The contents of the back-to-back testament should not contradict each other or be in conflict with the prevailing family, property and inheritance laws of each country.

It is vital to appoint a trustworthy and competent party to execute your last will. If you have doubts about that, you should appoint a reliable notary or lawyer who can manage and divide the assets according to your wishes.
Often enough in Indonesia, the family in-laws will attempt to take possession of your estate even if they are not entitled to it.

Foreign individuals cannot own immovable property such as land or buildings, regardless if they are married or not.
Indonesian individuals married to a foreigner in community of property (so without a prenuptial agreement affirming the Indonesian spouse as the home owner) cannot have full ownership (Hak Milik) of the house.

In many situations, the foreigner who cannot own the house did finance the purchase of it.
In case of a divorce, you need mortgage protection or a loan agreement with your spouse to protect your investment; but in case of death, you and your spouse need a last will, leaving your inheritance to the rightful inheritors.

If married in (joint) community of property, the Indonesian law dictates that the house and land has to be sold within one year after the death of one of the spouses.
If not sold within one year, the property falls to the Indonesian State, provided it is no longer encumbered with a mortgage or loan, after which the estate will be divided by court decision.
Without a prenuptial agreement and a last will, the widow or widower will not receive their fair share.

If married with a prenuptial agreement, the Indonesian spouse can have full ownership of the property.
In case of a divorce, your prenup can contain a loan repayment agreement; in case of death, you both need to have a last will in which you can leave your assets to each other and to the children born out of this marriage if any.

In the event of your death, then your spouse can keep the house or sell it. And if your spouse dies, then by last will the house can be sold with you as the beneficiary of the proceeds.

Besides immovable property, other assets may be part of an inheritance, usually being bank savings, life insurance policy, equity investments, vehicles, jewelry a/o the household effects.

The division of these assets among the inheritors can be stated in the last wills of you and your spouse.

An alternative way to protect your immovable property investment and the rights of your inheritors in case of your death is by first establishing a foreign direct investment company (PT PMA) of which you are the shareholder, after which the PMA can purchase and hold the property.
Property owned by such a company is under Hak Guna Bangunan (HGB) title instead of Hak Milik, but the property is sell-able as well as mortgage-able.

Besides having separate bank accounts, when married it is important to have at least one joint bank account in both your names.
Without a joint bank account, it will prove difficult to get the balance released to you after the death of your spouse.

If one of the spouses dies and there are no children, the widow/widower is entitled to the estate of the deceased.
If there are children, then the estate of the testator is to be divided evenly between the surviving spouse and the children.

When a foreign spouse holds an ITAS or ITAP stay permit and obtains a letter from the sponsoring company, he/she is allowed to purchase and own a vehicle in their own name and leave the car to the rightful inheritor(s).

Badan Penyelenggara Jaminan Sosia (BPJS) is the Social Security Administrative Institute of the Indonesian government.

If you are residing in Indonesia as an individual, you can obtain a personal BPJS Health Insurance.

Be aware that several complicated or enduring medical treatments are not covered by the BPJS insurance scheme. So if you wish to have better coverage, you should consider taking out an additional health insurance policy at a commercial healthcare insurance company at your own expense, unless your employer has arranged additional health insurance or has agreed to reimburse any additional costs not covered by the BPJS scheme.

There are several general insurance companies in Indonesia, which are affiliated with reputable Western insurance firms who offer reliable medical insurance.

Finding the most suitable additional healthcare plan for your specific requirements can be time-consuming.
AdvintA can assist you if you encounter any BPJS registration obstacles or in identifying a reliable commercial insurance company with suitable premiums, policy structures and claim procedures.

If you are an independent professional i.e. working as a freelancer in Indonesia, you can register as an independent BPJS Social Security member.

Be aware that the pension and accidental death benefits are not that substantial. So if you wish to build up extra pension or receive higher accidental death settlements, then you should consider taking out an additional capital insurance or life insurance at a commercial insurance company at your own expense.

Social security plans may apply to life insurance policies, as well as pension plan policies.
So you may consider investing part of your savings in an insurance product which pays out after your retirement.

AdvintA can assist you in identifying a reliable insurance company with suitable premiums, policy structures and pay out procedures.

Foreigners are not been able to get loans in order to purchase property in Indonesia, because they cannot hold a Hak Milik title (ownership rights).
Indonesian banks will not lend money to people who only have a Hak Pakai title (user-ship rights) regarding their property; this applies to foreigners as well as Indonesians.
With a prenup, the Indonesian spouse can hold a Hak Milik title and apply for a mortgage.

Besides Hak Milik, the bank can accept Hak Guna Bangunan (building rights) and Hak Guna Usaha (cultivation rights) land titles as collateral to secure a loan.

Indonesian individuals can hold these rights, as well as legal entities under Indonesian law.
So for a foreigner to get a loan on a HGB or HGU title, you need to establish a fully or partly foreign-owned PT PMA (Foreign Direct Investment Ltd Company).

Common durations for mortgages are 5 to 10 years and generally a down payment is required.

A foreigner needs to have an ITAS or ITAP stay permit, to legally own a car in Indonesia.
Still, most Indonesian banks will not borrow you the money if you need a loan to purchase the vehicle.
In that case, you may be able to get a car financed via an automotive finance company or alternatively to arrange a car lease contract.

In general, banks will not provide consumer credit or overdraft facilities to expatriates based on their monthly income.

The Indonesian Directorate General of Taxation requires all individuals residing in Indonesia including expatriates, to have their own personal tax number, called Nomor Pendaftaran Wajib Pajak (NPWP).

Individuals required to obtain a NPWP tax number and file income tax returns are:

• Employees who earn an income in excess of the non-taxable income level a/o income in addition to their monthly salary.
• Individuals who receive income from their business or as a self-employed professional.
• Individuals who receive income from capital investments.

Notes:

• Foreigners, who are present in Indonesia for more than 183 days within a continuous period of 12 months and show the intention to stay, may be obliged to get a NPWP.
• Dependent spouses are included in the NPWP of the husband/wife and do not need a separate tax number.

Once you have your personal tax number, you are legally responsible for paying your monthly income tax and for filing your annual tax returns.
You are also liable for paying tax on income earned outside of Indonesia, minus tax paid in those other jurisdictions on that oversees income.

Taxpayers must register at the Tax Office (Kantor Pelayanan Pajak) in your place of residence.
Foreigners living in Jakarta are required to register with the Tax Office for Foreign Bodies and Expatriates (KPP BADORA).

Registration requirements include the following:

• Completed registration form
• Photocopy of your passport
• Photocopy of your work permit
• Photocopy of your domicile certificate
• Photocopy of your employer's NPWP

Notes:

• If you are employed by a local company, the tax office may ask additional employer info.
• If you do not file your own tax return, you should also bring an authorization letter, stating the representative who handles your tax matters, usually a tax consultant.

Once you have registered, you will get your personal taxpayer registration number (NPWP).

You should notify the tax office if you relocate within Indonesia, if you are retiring in Indonesia or if you are leaving Indonesia altogether.

he income tax is due no later than the 15th of the following month.
The tax report must be submitted to the tax authorities no later than the 20th of the same month.
Note that some companies may have made an agreement with their local tax office to pay and report on an annual basis.

If you are employed by a company, your employer is responsible for the calculation and payment of taxes that need to be withheld from your monthly salary.
The employee is responsible for filing the annual income tax return before the 1st of April of the following year.

It may have been agreed in the employment contract with your employer that they pay your income tax.
However, you are still personally liable for those tax payments on your income.
Therefore you should get a monthly pay slip which states the gross and the net amounts and an overview of the yearly tax calculation from the company you work for.

Registered individuals and legal entities can file for tax electronically.
To be able to do so, they first need to obtain an Electronic Filing Identification Number (EFIN).
The tax amounts are paid via the banking system to the tax office.

Personal income tax overview:*

* The amounts and percentages may be subject to change, due to fiscal amendments.

The personal taxation system is based on worldwide income.

Contact the applicable tax agencies to make sure that you are not double taxed in different tax jurisdictions over the same income.

The Indonesian tax office has the authority to contact tax offices in countries that have a double-tax Treaty with Indonesia and vice-versa.

Excluded from personal taxation in Indonesia are:

• Inheritances.
• Gifts & donations.
• Fringe benefits & benefits-in-kind.

Note that these gifts and benefits should be correctly processed as such to avoid taxation disputes.