Legal Basis for Deportation and Re-Entry Ban
Under the Immigration Law and its implementing regulations, including the Regulation of the Minister of Immigrations and Corrections No. 13 of 2025 (“MoIC Reg 13/2025”), the Minister of Immigration and Corrections holds authority to impose administrative administration measures against foreign nationals who violate the applicable laws and regulations. Such measure includes:
- deportation; and/or
- re-entry ban (penangkalan), a ban on re-entering Indonesian territory for a specific period.
In practice, penangkalan (re-entry ban) is frequently imposed concurrently with deportation, particularly where the violation is assessed as sufficiently serious or potentially disruptive to public order, in accordance with Article 17 of the MoIC Reg13/2025.
Available Legal Remedies
A foreign investor subjected to deportation and/or re-entry ban (penangkalan) during the PT PMA incorporation process retains legal recourse, both through administrative and non-litigation channels, to challenge the decision or apply for removal from the blacklist (daftar penangkalan). The available avenues are as follows:
1. Administrative Review (Keberatan Administrative)
The affected investor may submit a formal objection or request for clarification to the Directorate General of Immigration (Direktorat Jenderal Imigrasi) against the deportation and/or penangkalan decision, pursuant to Article 77 of the Immigration Law.
In practice, it is important that such submission addresses:
- a chronological account of the activities carried out in Indonesia;
- evidence that the activities in question remained within the preparatory phase of investment (and were not operational in nature); and
- supporting corporate documentation, such as the Deed of Establishment, Business Identification Number (Nomor Induk Berusaha or “NIB”), or principles license (izin Prinsip).
2. Application for Removal from the Re-Entry Ban List
The investor may also submit a formal application to the Minister of Law through the Directorate General of Immigration requesting removal from the blacklist (daftar penangkalan). Such applications are typically accompanied by:
- a formal petition letter;
- an Indonesian sponsor (penjamin);
- substantiated reasons relating to the investor’s legitimate investment interest; and
- a demonstrated commitment to comply with the immigration regulations going forward.
3. Administrative Court Proceeding (Gugatan ke Pengadilan Tata Usaha Negara)
Where the deportation decision is assessed as unlawful or disproportionate, the investor may bring proceedings before the Administrative Court (Pengadilan Tata Usaha Negara or “PTUN”) under Law No. 5 of 1986 on Administrative Justice as last amended by the Law No.51 of 2009 (“Administrative Judiciary Law”). The PTUN Law grants any person or private legal entity the rights to challenge a State Administrative Decree (Keputusan Tata Usaha Negara or “KTUN”) that causes legal harm to the applicant (Article 1 number 10 of Administrative Judiciary Law). This extends to foreign nationals as legal subjects, as confirmed in the Elucidation to Article 4 of Administrative Judiciary.
A deportation and penangkalan decision will qualify as a KTUN where it constitutes: (i) a written decision; (ii) issued by a state administrative official; (iii) concrete, individual, and final in character; and (iv) producing legal consequences for the affected party. This avenue is, however, the most complex and resource-intensive, and requires careful strategic consideration including with respect to timing and costs.
Key Considerations in PT PMA Establishment
It is important to note that during the early phase of PT PMA incorporation, foreign investors are generally only permitted to conduct activities that are preparatory in nature, such as:
- investment explorations;
- signing of incorporation documents; and
- coordination with notaries or consultants.
Operational activities or conduct that, in substance, resembles active employment will generally require a limited stay permit (Izin Tinggal Terbatas or “ITAS”) with the appropriate index, such as work-based stay permit or a permit as a director or commissioner who has been formally and legally appointed, which presupposes that the company has been duly established and all relevant authorisations have been obtained.
To read the article in PDF version, click here
Read our article about MOI Regulation regarding TKDN here https://murzallawfirm.com/moi-regulation-no-35-of-2025-a-comprehensive-reform-of-indonesias-domestic-component-regime/
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