Indonesia’s Visa-Free Entry Policy – Imagine traveling to Indonesia without the hassle of securing a visa – a dream for many international tourists. Indonesia, with its stunning natural beauty and rich cultural heritage, had once allowed visa-free visits for citizens of 169 countries. However, this policy was suspended during the COVID-19 pandemic. Now, there are discussions about reinstating this visa-free policy. Will this move benefit Indonesia or lead to financial losses? Read on for a comprehensive analysis.

Indonesia, famed for its breathtaking landscapes and diverse cultural tapestry, has always been a prime tourist destination. From Bali and Yogyakarta to Lombok and Raja Ampat, the country boasts numerous attractions that captivate travelers from around the world.

Understanding Indonesia’s Visa-Free Policy

During President Joko Widodo’s administration, a significant immigration policy was introduced on March 2, 2016. This policy, formalized through Presidential Regulation No. 21 of 2016, granted visa-free entry to citizens from 169 countries for tourism and business purposes, allowing them to stay for up to 30 days without extension. According to the official website of the Special Class I Immigration Office of TPI Medan, travelers from these countries could enter Indonesia without presenting a visa. This policy aimed to boost economic sectors, particularly tourism.

However, the COVID-19 pandemic, which hit the world in early 2020, severely impacted Indonesia’s tourism sector. International travel restrictions and the temporary closure of tourist destinations led to a sharp decline in visitor numbers, adversely affecting the national economy.

Suspension of Visa-Free Entry

During the pandemic, the Indonesian government imposed restrictions on foreign entry. On March 20, 2020, the visa-free policy was temporarily halted through Ministerial Regulation No. 8 of 2020. Subsequently, on September 15, 2021, the government issued Ministerial Regulation No. 34 of 2021 regarding visa and immigration permits during the COVID-19 response and national economic recovery.

In 2022, the Directorate General of Immigration issued a circular about the visa-free policy and special short-stay visa for certain countries, aiming to facilitate public welfare and support the reopening of a productive and safe tourism sector. “The suspension of the visa-free policy and implementation of special short-stay visas was only temporary, intended to respond to the pandemic situation and governed by Ministerial regulations,” said Nyoman Adhi Suryadnyana, Member I of the Indonesian Supreme Audit Board (BPK).

On June 7, 2023, the Ministry of Law and Human Rights issued Decree No. M.HH.-01.GR.01.07 of 2023, suspending the visa-free policy for 159 countries.

Reinstating Visa-Free Entry: A Potential Downside

Recent discussions suggest the possibility of reinstating the visa-free policy. However, the BPK has warned that Indonesia could lose approximately IDR 3.02 trillion annually in non-tax state revenue (PNBP) if the visa-free entry is reinstated for 169 countries. This finding emerged from the BPK’s audit of the intensification and extensification of PNBP for the 2020 fiscal year through the first half of 2022 in the Ministry of Law and Human Rights.

“BPK has recommended that the Minister of Law and Human Rights reconsider the reimplementation of the visa-free policy by coordinating with relevant agencies,” Nyoman Adhi stated to the press on June 12, 2024.

He highlighted that the immigration sector’s PNBP contributions had significantly increased in 2023. “From a target of IDR 2.33 trillion, we realized IDR 7.61 trillion, or 327.03 percent of the target,” he noted.

Nyoman Adhi linked this revenue increase to the growing number of foreign visitors. Data shows that total foreign arrivals jumped from 1,174,796 in 2021 to 4,634,348 in 2022, and further to 10,632,034 in 2023, even as the visa-free policy remained suspended.

Electronic Visa on Arrival: A More Effective Solution

Given the negative financial impact, the BPK suggests that the government should seriously reevaluate the reimplementation of the visa-free policy. Instead, the Ministry of Tourism and Creative Economy (Menparekraf) sees electronic visa on arrival (e-VoA) and electronic visas as more effective measures for promoting quality and sustainable tourism.

Minister of Tourism and Creative Economy Sandiaga Uno mentioned plans to introduce several innovations, targeting high-quality, long-stay, and sustainable tourism. Deputy for Strategic Policy at the Ministry, Nia Niscaya, stated that if the visa-free policy is reinstated, it must consider aspects like reciprocity.

“If we reintroduce the visa-free policy, we must consider factors such as reciprocity,” Nia said in mid-June 2023, specifically on Monday, June 26, 2023.

As Indonesia navigates its post-pandemic recovery, balancing open borders with economic sustainability will be crucial. The government’s decisions on immigration policies will significantly impact the nation’s tourism sector and overall economy.