A Czech national has been deported from Bali following an immigration investigation into suspected villa marketing activities, highlighting the importance of choosing the correct Indonesian visa for commercial activities.
According to the reported case, the 46-year-old foreign national, identified by the initials NKH, was found to have allegedly marketed a villa for sale in Abang District, Karangasem Regency. Immigration officers reportedly discovered promotional activity on Facebook and a property advertisement displaying his contact number.
Authorities determined that the suspected activities were inconsistent with the purpose of his Visa on Arrival (VoA). He was subsequently deported through I Gusti Ngurah Rai International Airport, while immigration authorities proposed that he be placed on Indonesia’s entry blacklist.
The enforcement action was reportedly taken under Article 75(1) in conjunction with Article 122(a) of Law No. 6 of 2011 on Immigration, as amended.
The case serves as a reminder for foreign nationals living in or visiting Indonesia: holding a valid visa does not automatically grant permission to work, market property or conduct commercial activities. The permitted activities depend on the visa category and the conditions attached to the relevant stay permit.
For expatriates planning to establish a company, invest in an Indonesian business or work for a local company, understanding these distinctions is essential.
Can You Do Business in Indonesia on a Visa on Arrival?
The Visa on Arrival (VoA) is designed for eligible foreign nationals undertaking permitted short-term visits to Indonesia. It generally allows an initial stay of 30 days, with one extension of up to another 30 days, subject to the applicable requirements.
Permitted activities may include tourism and certain business-related visits. However, a business visit is not the same as carrying out commercial work.
Depending on the applicable visa conditions, activities such as attending business meetings, discussing potential investments or negotiating commercial arrangements may be permitted. By contrast, actively working, providing services, managing sales or undertaking other commercial activities outside the visa’s permitted scope may require a different immigration authorisation.
Foreign nationals should not assume that marketing a villa, advertising property for sale or receiving payment for sales-related activities is permitted simply because they entered Indonesia as visitors.
The distinction is particularly important in Bali, where international property investment and tourism-related businesses attract foreign entrepreneurs and professionals.
Before undertaking commercial activities, foreigners should establish:
- Whether their intended activities are permitted under their current visa.
- Whether they will act as an investor, company director, employee or service provider.
- Whether their business requires an Indonesian legal entity and additional business licences.
- Whether they need a work-related immigration status and applicable work authorisation.
Using the wrong visa may result in immigration enforcement, including deportation and potential restrictions on future entry.
Which Visa Should You Use to Do Business in Indonesia?
The appropriate immigration route depends on your role, the structure of your business and the activities you intend to undertake.
Three categories are particularly relevant to foreign nationals considering business activities in Indonesia: a Business Visa, an Investor KITAS and a Work KITAS.
1. Business Visa: For Permitted Business Visits
A Business Visa may be suitable for foreign nationals visiting Indonesia for qualifying business activities, subject to the conditions of the specific visa category.
Depending on the visa, permitted activities may include attending business meetings, holding discussions with prospective partners, exploring investment opportunities or negotiating commercial agreements.
However, a Business Visa should not be treated as a general authorisation to work in Indonesia.
Foreign nationals who intend to perform day-to-day operational duties, manage sales, provide services or take up an employment role should confirm whether their activities require a work-related visa and additional authorisation.
A Business Visa may be appropriate for visiting Indonesia to discuss a business opportunity, but it should not be assumed to authorise the ongoing operation of that business.
Before applying, review the purpose of your visit and the permitted activities under the relevant visa category.
2. Investor KITAS: For Eligible Foreign Investors
Foreign nationals planning to invest in an Indonesian company may consider an Investor KITAS, subject to the applicable investment, shareholding and immigration requirements.
The Investor KITAS is intended for qualifying investors associated with an eligible foreign investment company, commonly known as a Perseroan Terbatas Penanaman Modal Asing (PT PMA).
Under the applicable investor immigration requirements, the foreign investor generally needs to hold shares with a value of at least IDR 10 billion in the sponsoring company. The precise requirements should be checked against the latest regulations and the company’s circumstances.
A PT PMA can provide a legal structure for eligible foreign investment activities in Indonesia. However, establishing a company and obtaining an Investor KITAS do not automatically authorise every type of business activity.
Importantly, an Investor KITAS is not a substitute for work authorisation where the foreign national intends to perform duties that require a work-related immigration status. An investor who also intends to work actively in the company should obtain advice on the appropriate immigration category for their role.
For foreign nationals interested in property-related investment, company establishment, ownership restrictions, land rights and business licensing must also be assessed separately. An Investor KITAS does not, by itself, grant unrestricted rights to own Indonesian property or operate a property sales business.
Learn more about the Investor KITAS in Indonesia.
3. Work KITAS: For Foreign Nationals Working in Indonesia
Foreign nationals who intend to work for a legally registered company in Indonesia may need a Work KITAS and the applicable work authorisation.
This route is relevant to expatriates whose actual responsibilities involve carrying out work rather than simply investing in a business or attending meetings.
Depending on the role and the applicable regulations, this may include professionals working in management, sales, marketing, technical services or other eligible positions.
The employer and foreign national must ensure that the relevant employment, work authorisation and immigration requirements are met. The required arrangements depend on the position, business sector and applicable rules.
For example, a foreign national employed by an Indonesian property company to undertake sales or marketing duties should not assume that a VoA or Business Visa is sufficient. The company should assess the role and arrange the appropriate authorisation before the employee begins work.
Learn more about the Work KITAS in Indonesia and Work Permit services.
Investor KITAS vs Work KITAS vs Business Visa
Although these visa categories may all be relevant to foreign nationals with business interests in Indonesia, they serve different purposes.
| Category | Main purpose | Suitable for | Important consideration |
| Business Visa | Permitted short-term business visits | Eligible visitors attending meetings, negotiations or other authorised business activities | Does not automatically permit employment or ongoing commercial work |
| Investor KITAS | Residence as a qualifying foreign investor | Eligible shareholders in a qualifying foreign investment company | Investor status does not automatically authorise active employment |
| Work KITAS | Residence for eligible employment or work activities | Foreign nationals undertaking authorised work for an eligible employer | Applicable work authorisation and employment requirements must be met |
The correct category is determined by the foreign national’s actual activities, not simply by their job title or ownership of a company.
Where an individual is both a shareholder and an active employee or director, the relevant immigration and work authorisation requirements should be assessed according to the specific role.
What Happens If You Work in Indonesia on the Wrong Visa?
Foreign nationals are required to comply with the conditions of their visas and stay permits while in Indonesia.
Under Indonesia’s immigration framework, violations may lead to administrative enforcement. Depending on the circumstances and applicable legal provisions, consequences may include cancellation of a stay permit, deportation or restrictions on future entry. Certain violations may also carry further legal consequences.
The Bali villa marketing case illustrates how activities that appear straightforward, such as promoting a property online or displaying a sales advertisement, can attract immigration scrutiny when authorities consider them inconsistent with the person’s visa.
Foreign nationals should therefore avoid beginning work or commercial activities while assuming that their visa will be sufficient.
If your business activities change after you arrive in Indonesia, review your immigration status before proceeding. The appropriate solution may involve a different visa, a qualifying stay permit, work authorisation or additional business licences, depending on the circumstances.
How LMI Consultancy Can Help With Your Indonesian Business Visa
Choosing the right visa is an important part of establishing or operating a business in Indonesia. The process may involve more than selecting a visa category: company structure, investment eligibility, business licensing, employment arrangements and the scope of permitted activities may also need to be considered.
LMI Consultancy provides immigration consultation and support for expatriates and foreign investors navigating Indonesian visa requirements.
Our services include:
- Work KITAS: Support for eligible foreign nationals undertaking authorised employment in Indonesia.
- Work Permit: Guidance on applicable work authorisation requirements.
- Investor KITAS: Assistance for qualifying foreign investors seeking an appropriate immigration status.
If you are planning to establish a company, invest in an Indonesian business or take up a commercial role, reviewing your circumstances before starting activities can help you identify the appropriate route.
LMI Consultancy helps expatriates and foreign investors navigate immigration requirements in Indonesia, with advice tailored to their intended activities and business circumstances.
