Pension & Retirement

The warm climate and tropical islands of the Indonesian archipel serve as an attractive retirement location for Westerners.

Retirement

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.

To apply for a retirement visa, the following basic requirements are concerned:
  • A passport, valid for at least 18 months; proving that the applicant is 55 years of age or older.
  • A signed statement agreeing not to work or engage in business activities in Indonesia; the applicant should be fully retired.
  • Pension fund or bank account statement proving that the applicant has sufficient funds available for his/her living expenses with a minimum of USD 18,000 per year from pension benefits or investment income; USD 1,500 per month spending space.
  • Policy statements proving that the applicant has health insurance, life insurance, and personal liability covered.
  • A purchase or rental agreement, proving that the applicant has made living arrangements in Indonesia; a minimum expenditure per city or region may apply, according to regulations.
 

Once you received written confirmation that your retirement visa application has been approved, you need to take this document to the Indonesian embassy or consulate where they will verify it.

When returning to Indonesia with the new visa stamp in your passport, you must visit the Immigration office of your district, where they will take your photo and fingerprints to complete the process.

The initial retirement visa is still a limited stay permit which has to be extended every year.

After extending the retirement visa for 5 consecutive years, the foreign retiree can apply for a permanent stay permit (ITAP Lansia) through a certified foreign retiree travel agency.

To apply for an ITAP, the following basic requirements are concerned:
  • Valid passport
  • Valid retirement visa (ITAS Lansia).
  • Appointment letter of the foreign retiree travel agency who will act as a sponsor plus details of the agency such as license (SIUP) and tax number (NPWP).
  • Pension fund or bank account statement proving that the applicant has sufficient funds available for his/her living expenses with a minimum of USD 18,000 per year from pension benefits or investment income.
  • A purchase or rental agreement, proving that the applicant has arranged living accommodation in Indonesia.
  • A statement declaring to employ an Indonesian house maid/servant (pembantu).
   

Note that during the covid-19 situation, different visa and travel rules apply.

Pension

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.

Options to access your pension a/o social security funds in Indonesia:
  • You may be able to have your retirement benefits directly deposited into an Indonesian bank account in your name.
  • Have your funds deposited in a bank account in your native country as usual, after which you transfer any amounts needed to your Indonesian bank account.
  • Access your funds through ATM withdrawals.
Considerations regarding your preferred method of access:
  • Transfer fees.
  • Transfer duration.
  • Currency exchange rate.
  • Payments in foreign currency or in Indonesian Rupiah.
  • Banking helpdesk and online services.
  • Tax reasons.

Summary

AdvintA cannot act as a sponsor for retirees, but can guide you through the processes of getting an ITAS or ITAP visa and inform you about accommodation, taxes, insurances and bank accounts.

Moreover, if you seek advice about (additional) retirement income while residing in Indonesia, please do not hesitate to contact us.