September 29, 2005

According to the Jakarta Post, two Malaysian accountants were arrested after allegedly entering on visit visas and conducting an audit at a client site. KPMG stated that they were using a short visit visa for business purposes, and that according to their representative was lawful.

The Immigration regulations refer to a Presidential decree No. 103/2003 which permits a visa exemption for short visits and passport holders from Malaysia are among citizens of countries that do not require a work permit based on reciprocal recognition and bilateral arrangements.

The Immigration authorities’ position is that under the decree, Malaysian citizens are permitted to enter Indonesia if the purpose of their visit is in the context of recreation or tourism, social-cultural or business reasons or as a governmental duty only and not for audit purposes which is work.