Living and Freelancing in Indonesia as a Foreigner: Tips and Legal Guide

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Freelancing has become an increasingly popular way of working around the world, as it offers flexibility and opportunities across borders.

But what if you’re a foreigner looking to freelance in Indonesia? 

With its rapidly growing digital economy, affordable cost of living, and vibrant culture, Indonesia appears to be an appealing destination to live and work. 

However, understanding the legal framework, visa options, and tax regulations can be challenging for foreigners pursuing a freelancing career here.

So, let’s dive into the essentials of freelancing in Indonesia as a foreigner!

Guide to Freelancing in Indonesia as a Foreigner

Source: Freepik.com/Freepik

1. Get Your Visa

The most important step when you want to freelancing in Indonesia as a foreigner is to get the right visa first.

Not a holiday or tourist visa, but a Working Visa or Kartu Izin Tinggal Terbatas (KITAS).

KITAS is a limited stay permit that allows foreigners to live in Indonesia for a certain period, usually up to 12 months. 

This visa type also allows you to work legally in the country.

Currently, KITAS is available for representatives of 53 professions, such as General Manager, Director, Singer, Marketing Manager, Coach, and more.

If you plan to apply for KITAS, you’ll need to prepare several documents, including:

• A valid passport
• Curriculum vitae (CV)
• Proof of BPJS health insurance enrollment
• A document showing your registered address in Indonesia
• Certification of academic degrees.

2. Find Freelance Work Opportunities

In Indonesia, you can also explore remote work opportunities.

For international platforms, you can use sites like Upwork, Fiverr, Toptal, or Freelancer.

If you’re looking for local projects, platforms such as LinkedIn or Jobstreet are great options.

And don’t forget, while living in Indonesia, building a strong network is just as important. 

Expat hubs like Bali’s Canggu or Jakarta’s coworking spaces can be great places to connect and find opportunities.

3. Manage Your Payments

Most foreign freelancers usually rely on Wise, Payoneer, or Revolut to get paid from international clients, it is super handy and fast.

But once you’ve got your KITAS, you can actually open a local bank account in Indonesia, like BCA or Mandiri, which makes everyday transactions way easier.

The only downside? Transfers in USD/EUR to local banks often come with pretty high fees.

So, many freelancers still mix between global platforms and local accounts depending on the project.

4. Take Note of the Cost of Living

Source: Freepik.com/jcomp

Do you want to live in Jakarta, Bali, Bandung, or maybe another city in Indonesia? Then you’ll need to pay attention to the cost of living.

Are you looking for a more affordable lifestyle? Places like Bali, Yogyakarta, or Bandung can be great options.

On the other hand, if your goal is to get more opportunities from corporate projects, then Jakarta is the right choice.

Just keep in mind that living in Jakarta usually comes with a higher cost of living compared to other cities.

If you’re planning to live in Jakarta and are looking for a place to stay, you might want to check out The Elements!

5. Taxes and Registration

When freelancing in Indonesia as a foreigner, you also need to pay attention to taxes.

If you stay in the country for more than 183 days in a year, you’ll be considered a tax resident.

This means you’ll need to register for an NPWP (tax ID) and pay local income tax, which is progressive (ranging from 5 to 35 percent).

If you only work with overseas clients, the tax treatment may be different, but it still needs to be reported.

***Header: Freepik.com/benzoix