The objective of Indonesia’s new “Golden Visa” program is to stimulate the economy by offering foreign investors the opportunity to establish long-term residency. The concept’s objective is to attract superior investors by offering them distinctive features and flexible investment pathways in its new capital city.
Indonesia has implemented a novel long-term visa program to attract international investors and bolster the largest economy in Southeast Asia. Investors have the option of selecting either a five-year or ten-year residency period under the new “Golden Visa” program, contingent upon their investment levels.
Visa Options and Investment Requirements
1. For Individual Investors
Individuals must either launch a business with a minimum valuation of $2.5 million or invest $350,000 directly in Indonesian government bonds, public company securities, or bank deposits to qualify for a five-year golden visa. For a ten-year visa, the investment requirements are doubled to $5 million and $700,000, respectively.
- Five-Year Visa: Individual investors must establish a firm with a minimum valuation of $2.5 million to qualify for a five-year visa.
- Ten-Year Visa: A five-million-dollar investment is required for a ten-year visa.
- Option 2: Alternative Investment Route: Individuals who prefer not to establish a business may invest $350,000 to secure a five-year visa or $700,000 to secure a ten-year visa. These funds may be deposited or allocated to publicly traded equities and bonds issued by the Indonesian government.
2. For Corporate Investors
To obtain five-year visas for their directors and commissioners, businesses must allocate a substantial $25 million. To extend this visa to ten years, the investment threshold is raised to $50 million.
- Five-Year Visa: Organizations may acquire visas for their commissioners and directors by investing $25 million.
- ten-year visa: A $50 million down payment is required for a ten-year visa.
Additionally, the criteria for investments in the new capital city of Indonesia, which is being constructed in Borneo, were reduced:
- A $5 million down payment is required for the Five-Year Visa.
- A ten-year visa: necessitates an investment of ten million dollars.
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Comparative Evaluation and Worldwide Patterns
There are comparable investment visa programs in numerous countries worldwide; however, Singapore, Britain, and Canada have recently discontinued them as a result of concerns regarding potential speculative exploitation and their ineffectiveness in generating employment.
Vision and Goals of the Government
The strategic importance of the new visa program was underscored by President Joko Widodo, who is also known as Jokowi. The speaker declared, “The golden visa is being introduced to facilitate the investment and contribution of foreign nationals to Indonesia.” The program aspires to attract “high-quality travelers” who have the potential to significantly influence the nation’s economy.
Indonesia’s Vision for the Future
The government’s objective of attracting affluent investors through the Golden Visa program has been emphasized by Indonesian President Joko Widodo, who is also known as Jokowi. Jokowi stated, “Our objective is to facilitate the process of foreigners contributing to Indonesia’s development.”
Initially, the results appear to be promising. Since the program’s pilot phase commenced last year, nearly 300 individuals have been granted Golden Visas, providing the Indonesian economy with $123 million.
Expanding the Program
The Indonesian immigration agency is also investigating the feasibility of granting a special status to foreign nationals with Indonesian ancestry. This proposal, which is based on India’s Overseas Citizenship of India (OCI) scheme, will enable these individuals to reside, work, and travel freely within Indonesia. It is expected that the new status will be disclosed as early as October.
Benefits of Indonesia’s Long-Term Golden Visa
- Extended Residency: The Golden Visa provides long-term residency in Indonesia, with a typical duration of 5 to 10 years, contingent upon the investment made. This offers stability and security to individuals who intend to reside in Indonesia for an extended period.
- No Requirement for Frequent Renewals: The Golden Visa, in contrast to shorter-term visas, minimizes the necessity for frequent renewals, thereby saving time and reducing the amount of aggravation for residents.
- Investment Opportunities: The visa is typically associated with substantial investments in Indonesia, including real estate, business ventures, or government bonds, which enables you to diversify your investments while obtaining residency.
- Pathway to Permanent Residency: Long-term Pathway to Permanent Residency Depending on Indonesia’s specific regulations, Golden Visa holders may become eligible for permanent residency and eventually citizenship.
- Inclusion of Family Members: The visa frequently includes provisions for immediate family members, which enables your spouse and dependent children to also reside in Indonesia under the same visa.
- Ease of Travel: Long-term residency allows for more unrestricted travel within and outside of Indonesia, without the need to be concerned about visa applications or restrictions.
- Access to Local Services: Your quality of life in Indonesia will be improved by your improved access to local services, such as healthcare, education, and finance, as a long-term resident.
- Business and Employment Flexibility: The Golden Visa frequently provides entrepreneurs and professionals with a substantial advantage by enabling them to operate a business or work in Indonesia with greater flexibility.
- Favorable Tax Treatment: Indonesia may provide Golden Visa holders with favorable tax treatment, particularly if they satisfy specific residency requirements or spend a portion of the year outside the country.
- High Quality of Life: Indonesia is an appealing destination for long-term residency due to its diverse and vibrant culture, stunning landscapes, and comparatively low cost of living.
- Cultural and Lifestyle Advantages: Indonesia’s tropical climate, rich cultural heritage, and relaxed lifestyle are all attractive to individuals seeking a change in tempo or environment.
Conclusion
The “Golden Visa” program, which Indonesia has implemented, is a significant move toward the attraction of foreign capital and the promotion of economic growth. Indonesia endeavors to establish itself as an attractive destination for international investors and its expatriate community by exploring the potential for dual citizenship and offering long-term residency options.
Frequently Asked Questions:
Why are foreign investors interested in Indonesia?
The country boasts an enormous labor pool, a growing middle class, and a vast wealth of natural resources. Standard Chartered Bank projected Indonesia’s economy to grow from US$4.2 trillion in 2020 to US$10.1 trillion by 2030 to become the world’s fourth-largest economy in terms of purchasing power parity.
How do I get a long-term visa for Indonesia?
One can obtain permanent residency in Indonesia after 3 years of holding a temporary stay permit (ITAS). One of the ways to get ITAS is to obtain a second home visa by investing $130,000 in a bank deposit or real estate in Indonesia.
How can foreigners invest in Indonesia?
Indonesian Company Law requires a limited liability company to have at least two shareholders, which can be an individual or a legal entity. For investments that are 100% open, the foreign investor needs to identify a second shareholder (which can be an affiliated party) to hold shares in the PMA company
