Exciting news has emerged for investors considering Indonesia as their investment destination. As of August 30, 2023, Indonesia has officially implemented the Golden Visa program for qualified foreign nationals. This move signifies the Indonesian government’s commitment to simplifying residency permits for foreign investors, be they individuals or corporations. But what exactly does the Golden Visa entail, and how is it being executed in Indonesia? Let’s delve deeper into the intricacies of this significant development.
The foundation for the Golden Visa policy in Indonesia rests on two crucial regulations: Regulation No. 22 of 2023 from the Ministry of Law and Human Rights (Permenkumham) regarding Visas and Stay Permits, and Regulation No. 82 of 2023 from the Ministry of Finance, both enacted on August 30, 2023. The Golden Visa program is specially designed for high-caliber foreign individuals whose presence in Indonesia is expected to contribute significantly to the country’s economic growth, encompassing both individual and corporate investors.
Director-General of Immigration, Silmy Karim, describes the Golden Visa as “a visa that serves as the foundation for a residence permit lasting from 5 to 10 years, all aimed at bolstering the national economy.” This move is aligned with the directive of President Joko Widodo and has been designated as a priority program to be executed within a swift six-month timeframe. This half-year duration was dedicated to thorough evaluation, policy formulation, regulatory adjustments, and the preparation of necessary subsidiary rules.
It’s important to note that prior to this development, Indonesia did not offer visas with a 10-year residence permit option.
Immigration Services: Prerequisites for Acquiring the Golden Visa for Foreign Investors
To qualify for a five-year stay in Indonesia, individual foreign investors keen on establishing a company within the nation are required to make a substantial investment of $2.5 million USD, equivalent to approximately Rp 38 billion. Those aspiring for a decade-long stay need to commit an investment of $5 million USD, which translates to roughly Rp 76 billion.
On the corporate front, companies formed in Indonesia with investments reaching $25 million USD or approximately Rp 380 billion will secure a five-year Golden Visa for their directors and commissioners. For corporations investing $50 million USD, both directors and commissioners will be granted a remarkable 10-year stay.
Distinct guidelines are in place for individual foreign investors who do not intend to establish a company in Indonesia. To obtain a five-year Golden Visa, applicants must set aside funds amounting to $350,000 USD, around Rp 5.3 billion, which can be allocated towards the purchase of Indonesian government bonds, shares in publicly traded companies, or deposits. For those aspiring to secure a decade-long Golden Visa, a sum of $700,000 USD, equivalent to approximately Rp 10.6 billion, is required.
Silmy emphasizes the stringent requirements, stating, “Given our focus on attracting high-quality immigrants, the prerequisites are weighty. The longer individuals choose to reside in Indonesia, the higher the financial commitment required, particularly for investment activities, which may reach up to around Rp 760 billion.”
Immigration Services: Advantages for Golden Visa Holders
It’s worth noting that Indonesia is not the pioneer in implementing the Golden Visa program. Various developed countries, including the United States, Canada, the United Arab Emirates, Ireland, Germany, New Zealand, Italy, and Spain, have already embraced this concept.
These nations have reported positive outcomes from their Golden Visa initiatives. For instance, Denmark has emerged as a leader in innovation, while the United Arab Emirates has become a preferred destination for foreign investors.
With the introduction of the Golden Visa in Indonesia, the government aims to replicate the positive impact experienced by these countries. Indonesia, with its vast potential waiting to be harnessed and developed, aspires to attract a wave of high-quality immigrants.
In Indonesia, holding a Golden Visa offers numerous conveniences and advantages to its holders. Silmy highlights the exclusive benefits, including extended residency durations, simplified entry and exit procedures, and enhanced efficiency, as there is no longer a need to process a Limited Stay Permit (ITAS) at the immigration office.
“As soon as they arrive in Indonesia, Golden Visa holders are exempt from the process of applying for a Limited Stay Permit (ITAS) at the immigration office,” Silmy affirms. This significant change promises to streamline the experience for Golden Visa holders, making Indonesia an even more attractive destination for foreign investors looking to contribute to the nation’s growth and prosperity.
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