Rules & land · Indonesia

Indonesia: 328 Permits Issued After Agency Delays, KITAS Target Cut to 5 Days

Investment and Downstreaming Minister Rosan Roeslani said on 20 October 2026 that the government is speeding up integrated licensing and pushing for quality investment. He said the ministry has already granted about 328 permits under a new mechanism, and that the goal is to cut the time to get a KITAS for foreign workers from months to five working days.

News of Published in DOMA News: 3 min read

Key points

  • The Investment Ministry may approve a permit itself when a technical agency misses its deadline, and about 328 permits have been issued this way.
  • The licensing system involves 28 ministries and agencies.
  • The KITAS target for foreign workers is stated as five working days instead of several months.
  • The downstream share of investment (domestic processing of raw materials) rose from 26 percent in 2024 to 35 percent in Q3 2026.
328permits issued under the deadline-override mechanism
28ministries and agencies in the licensing system
5 working daysstated target for KITAS processing
26% to 35%downstream share of investment, 2024 vs Q3 2026

What the minister said

Investment and Downstreaming Minister Rosan Roeslani said on Tuesday, 20 October 2026, that the government continues to encourage investment that delivers real economic benefit and creates jobs. The minister issued the remarks in a written statement received by the Antara news agency.

The step follows instructions from President Prabowo Subianto given at a restricted session with a group of cabinet ministers (the Red and White Cabinet). The source gives no further details of that meeting.

Downstreaming is growing in the investment mix

Downstreaming means processing raw materials inside the country rather than exporting them unprocessed. According to the minister, such projects accounted for just 26 percent of investment in 2024, while the share reached 35 percent in the third quarter of 2026.

The government also wants a bigger place for Indonesia in worldwide supply chains. Officials plan further work on nickel and on batteries for electric vehicles, and say they will try to keep output capacity in step with technology. For the Bali property market this theme is indirect, since it concerns mainly industry rather than tourism.

How faster licensing works

Roeslani said reform of permit procedures is being accelerated. The integrated licensing system draws in 28 ministries and related agencies. The reform produced a mechanism under which the Ministry of Investment can approve a permit itself when technical agencies have not finished the process by the set deadline.

To date about 328 investment permits have been issued under this mechanism. The minister said this helped overcome bureaucratic delays in other ministries. The source offers no independent check of that number, so it is the ministry's own figure.

KITAS in five working days: what is actually stated

The streamlined process, the report says, also aims to shorten the time needed to obtain a KITAS (limited stay permit) for foreign workers. At present this takes months, and the stated goal is five working days.

It is important to separate a stated goal from a rule in force. The source does not name the regulation fixing the five day period, does not say from what date it applies, and does not say which KITAS categories it covers. For now this is a ministerial statement rather than a confirmed norm.

The quote and the context

The minister summed up the point of the reform in one idea: investors want certainty, they dislike surprises, and the government is trying to provide that, including in licensing.

For foreign owners and buyers in Bali, predictable timelines in the permit system matter as much as the rules themselves. But the source says nothing about how the changes affect local permits for housing, construction or rentals at provincial and regency level.

What happens next

Watch for official ministry documents and for whether the five working day KITAS target is fixed as a rule, and for which categories. Updated figures on permits issued under the mechanism beyond 328 would also be useful.

What it means for investors

For a villa owner or buyer in Bali this is a signal for now, not a change in the rules. If you plan to hire a foreign manager or specialist, ask a lawyer what KITAS timelines apply today and do not schedule a launch around the stated five days. We check the documents and permits for a property separately, because residence and building permits in Bali are issued by local authorities, while the source describes a national mechanism.

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Q&A

Is the five day KITAS already in force?

The source describes a goal, not a rule in force. It names no regulation or start date.

What is the mechanism for agency delays?

The Investment Ministry can approve a permit itself if technical agencies miss the deadline. The minister said about 328 permits were issued this way.

Source
Antara English, published October 20, 2026, language: English

Prepared by the DOMA editorial team from public reports, with the original source linked above. This is a news review, not legal or tax advice. Not a public offer.

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