Indonesia has introduced a new Golden Visa Program to entice wealthy foreign investors. On July 25, 2024, President Joko Widodo announced a long-term visa plan that will allow foreigners to stay in Indonesia for up to ten years. The program aims to promote the country's economic growth by attracting high-quality investors and passengers.

Investment Options for Golden Visa

The Golden Visa provides several investment pathways that lead to residency in Indonesia:

Five-Year Visa Options:

Investors can qualify for a five-year Golden Visa by forming a $2.5 million firm or depositing $350,000 in a state-owned bank. Alternatively, they can put $130,000 in a state-owned bank and buy an apartment worth at least $1 million.

Ten-Year Visa Options:

To obtain a ten-year visa, investors must invest $5 million in the country or deposit $700,000 in a state-owned bank. Another alternative is to make a $130,000 deposit and purchase a $1 million condo.

Corporate Visas:

Businesses can obtain Golden Visas for their directors and officers by investing $25 million for a five-year visa or $50 million for a ten-year visa.

Benefits and Goals of the Program

The new visa scheme intends to make the investing process easier for foreigners while also attracting high-quality international vacationers. According to Immigration Chief Silmy Karim, the Golden Visa program began testing in August of last year. Since then, Indonesia has awarded roughly 300 visas and received $123 million in investment.

The Indonesian government intends to issue 1,000 Golden Visas by the end of 2024. This strategy is likely to benefit both foreign investors and multinational enterprises that already operate in Indonesia. For example, mining corporations wishing to expand their operations could obtain Golden Visas for their overseas employees.

Impact on Digital Nomads

The introduction of the Golden Visa may have an impact on Indonesia's digital nomad population. According to reports, the new visa policy may restrict the number of long-term tourists and digital nomads.

This worry derives from recent studies by the Association of Indonesian Tour and Travel Agencies, which found that digital nomads frequently use tourist accommodations for work. The Golden Visa seeks to address these concerns by offering a more structured residency option for investors and high-quality travellers.

Furthermore, Silmy Karim stated that authorities are looking into the potential of providing special status to foreign nationals of Indonesian heritage. This status, akin to India's Overseas Citizenship of India (OCI), would allow people of Indonesian descent to reside and work in Indonesia indefinitely. The new status could be implemented by October.

FAQS

How can the Golden Visa Program help international companies operating in Indonesia?

International enterprises can profit from obtaining Golden Visas for their overseas employees, which improves their ability to operate and expand in the country.

How does the Golden Visa Program differ from comparable schemes in other countries?

While numerous nations provide comparable investment visa programs, Indonesia's Golden Visa is distinguished by its investment opportunities and emphasis on attracting high-quality investors. Some countries have terminated such programs because to concerns about job creation and speculative investments, while Indonesia is pursuing this scheme to stimulate economic growth.