The upcoming Golden Visa program is aimed at millionaires looking to make significant financial investments in Indonesia.
The Golden Visa policy was established on Regulation of the Minister of Law and Human Rights Number 22 of 2023 on Visas and Stay Permits and Regulation of the Minister of Finance Number 82 of 2023, both of which were proclaimed on August 30, 2023.
The new visa types are designed to entice qualified international investors, including corporate and individual investors, to invest in Indonesia and help the country’s economic development.
“Golden Visas are visas granted to foreigners as a basis for a stay permit for 5 to 10 years to support the national economy,” said Director General of Immigration Silmy Karim on Saturday (02/09/2023).
Individual investors wanting to start a firm in Indonesia must invest US$ 2,500,000 (about Rp. 38 billion) to be eligible to reside in Indonesia for 5 years. Meanwhile, the required investment for a 10-year stay permit is US$ 5,000,000 (about Rp. 76 billion).
Directors and commissioners of corporate investors that create a firm in Indonesia with an investment of US$ 25,000,000 or approximately Rp. 380 billion will be granted a 5-year golden visa. The government will offer them a 10-year stay permit for an investment of US$ 50,000,000.
Foreign investors who do not plan to start a firm in Indonesia face different regulations. Applicants for a 5-year Golden Visa stay permit must place funds worth US$ 350,000 (approximately Rp. 5.3 billion), which can be used to purchase Indonesian government bonds, public company shares, or place savings/deposits in Indonesia, whereas applicants for a 10-year Golden Visa stay permit must place funds worth US$ 700,000 (approximately Rp. 10.6 billion).
“Because we are targeting quality investors, the requirements are more thorough. “The longer you stay in Indonesia, the higher the deposit amount required, especially for foreign investment, which can reach around Rp. 760 billion,” he added.
Silmy added on to explain that the Golden Visa was an instruction from President Joko Widodo when he was Director General of Immigration, therefore Silmy prioritized the program to be completed within six months.
Silmy stated that the six months were spent reviewing and developing the Golden Visa policy, as well as revising and establishing supporting rules.
“From modifications of Government and Ministerial Regulations to adaptations of Director General Regulations. The preparation of the Golden Visa policy involves many ministries,” he said. Previously, Indonesian immigration regulations did not regulate visas with a stay permit of 10 years.
Golden visa holders can expect to receive some special perks from this sort of visa. These benefits include a longer stay period, ease of leaving and entering Indonesia, and efficiency because an ITAS is no longer required at the immigration office.
“Once they arrive in Indonesia, they (Golden Visa holders) no longer need to apply for a temporary stay permit (ITAS) at the immigration office,” said Silmy.
Indonesia is one of the nations that offer a golden visa. Previously, similar laws were established in a number of wealthy countries, including the United States, Canada, the United Arab Emirates, Ireland, Germany, New Zealand, Italy, and Spain.
“Countries that have implemented the golden visa policy are getting a positive impact. Denmark, for example, has succeeded in becoming one of the countries at the forefront of innovation. Then, the United Arab Emirates became a favourite destination for foreign investors. Hopefully, with this policy, Indonesia will also receive a similar effect. Moreover, our country has a myriad of potentials to be fully managed and developed,” he concluded.
