Indonesia is increasingly establishing itself as a country that is highly open to foreign investors. This is evident through the facilitation of regulations and improvements in immigration services. President Joko Widodo (Jokowi) himself has actively encouraged investors to channel their investments into Indonesia during various international visits.
Foreign investment growth is flourishing as a result. The Investment Coordinating Board of Indonesia (BKPM) has recorded that investment realization in the country reached IDR 328.9 trillion in the first quarter of 2023. This achievement reflects a 16.5% year-on-year growth and a 4.5% quarter-on-quarter increase.
In order to attract foreign investors, Indonesia continues to make improvements by providing various facilitations and enhancing service quality. Several new policies have been implemented to support these efforts, including:
Special Visa for Investors
Investors are now granted the opportunity to stay in Indonesia for up to 180 days to explore potential business opportunities while managing all the necessary legalities required for their investments in the country.
Foreign investors can apply for a pre-investment visit visa online for a duration of 180 days through the website https://molina.imigrasi.go.id/ prior to their arrival in Indonesia. This online service was launched by the Directorate General of Immigration under the Ministry of Law and Human Rights (Kemenkumham) to commemorate the 73rd Immigration Day on Thursday (January 26, 2023).
Director General of Immigration, Silmy Karim, stated in Jakarta on Wednesday (February 1, 2023) that Immigration must act as a facilitator in encouraging the entry of foreign investors and realizing their investments in Indonesia to stimulate national economic growth. The online pre-investment visa service is accompanied by an increased vigilance from the Immigration Directorate General in monitoring foreign individuals.
Previously, foreign investors had to obtain various documents from the Investment Coordinating Board (BKPM) and relevant institutions for their visa applications related to their business plans in Indonesia. Now, they can apply for the visa before their departure, making it easier to realize their investments in Indonesia.
Streamlined Licensing Procedures
The government guarantees ease of licensing for foreign investors who intend to invest in Indonesia. They can directly obtain assurances from President Jokowi himself.
Furthermore, the Omnibus Law on Job Creation was enacted since the end of 2020. This law includes an investment cluster that facilitates foreign investment in Indonesia. The law was specifically designed to increase investment realization in the country, as one of the indicators of a developed nation is the influx of investments.
The Omnibus Law introduces provisions for the management of business permits (including investment permits) through the online single submission (OSS) system.
By utilizing online methods, foreign investors are able to submit their permit applications through their gadgets without the need to travel to Indonesia. This method significantly saves time and cost, as it only requires the use of a mobile phone or laptop without having to spend money on flight tickets to Jakarta.
The convenience of obtaining permits through the OSS system saves time, with a permit being issued within 5 working days (if the requirements are met).
The straightforward and prompt issuance of permits brings satisfaction to foreign entrepreneurs, as they find the process of obtaining permits to be simple and efficient.
Introduction of the Golden Visa
The term “Golden Visa” refers to an immigration program that grants residence permits and other facilitations to foreign investors who meet certain requirements.
Indonesia is also set to issue this type of visa. Minister of Investment and Chairman of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, stated that the government plans to issue a golden visa for investors. This initiative aims to encourage long-term investment commitment in Indonesia.
The golden visa will provide special privileges to investors who are willing to invest in Indonesia, granting them a residence permit for several years.
Bahlil mentioned that regulations related to the golden visa are currently being finalized. Minister of Law and Human Rights, Yasonna Laoly, will subsequently issue Government Regulations (PP) concerning this matter.
He expressed positive responses to the issuance of the golden visa as it facilitates the entry of foreign investors into Indonesia.
“For instance, if an investor invests IDR 30-40 billion, we can grant them a visa for 5 or 10 years. The formulation will be regulated by the immigration authorities,”
said Bahlil.
Immigration Facilitation
The immigration checks at Indonesian airports have been made more efficient with the implementation of autogate services. The self-service facilities equipped with passport readers are operational at Soekarno-Hatta International Airport in Tangerang, Banten, and I Gusti Ngurah Rai International Airport in Badung, Bali since January 2023.
These facilities significantly reduce the passport inspection time from at least 1 minute per person to less than 30 seconds per person. This time efficiency helps reduce queues at immigration checkpoints for both international departures and arrivals.
The investor-friendly immigration services will also provide a more comfortable experience for foreign investors during their activities in Indonesia. Headquarters executives of foreign companies, who previously held meetings with their management teams in Indonesia from Singapore, will also be encouraged to visit Jakarta directly.
In summary, Indonesia is positioning itself as an investor-friendly nation by implementing ease of regulations and improving immigration services. President Joko Widodo has actively invited foreign investors to invest in Indonesia during his international visits. The country has witnessed significant growth in foreign investment, with investment realization reaching IDR 328.9 trillion in the first quarter of 2023.
To attract more investors, Indonesia has introduced policies such as a special visa for investors, streamlined licensing procedures, plans for a Golden Visa program, and improved immigration facilities. These efforts aim to facilitate investment, enhance investor confidence, and stimulate economic growth.
20% off today. Whatsapp us!