Indonesia launches golden visa, targeting lucrative travelers, investors

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JAKARTA (ANTARA) – President Joko Widodo (Jokowi) officially launched the Golden Visa Program on July 25, inviting international citizens to come and invest and contribute to the development of Indonesia.

By issuing golden visas, Indonesia attracts high-quality travelers and aspires to become a promising investment haven and a suitable second home for profitable investors, global talents and world figures.

The launch and implementation of the Golden Visa has its legal roots in Regulation No. 22 of the Minister of Law and Human Rights of 2023, which relates to visas and residence permits, and Regulation No. 82 of the Minister of Finance of 2023, which relates to non-state income related to the Golden Visa.

By launching this new facility, Indonesia aims to provide a higher level of convenience to foreigners intending to invest in its territory.

Visa holders enjoy a range of exclusive benefits, including a residence permit valid for 5 to 10 years, priority immigration services at international airports, and no need for an Infinite Stay Permit (ITAS).

The visa policy targets several categories of people, such as individual investors, corporate investors, former Indonesian citizens and their descendants, global talents, and world-renowned figures.

Indonesia’s strategic position

Justice and Human Rights Minister Yasonna Laoly said the golden visa system would help Indonesia strengthen its strategic position in the eyes of the international community because it would allow more people to contribute to the country’s development.

He said the Golden Visa is an adaptable and responsive policy developed by the Director-General of the Immigration Department to provide a higher level of convenience for foreigners intending to reside in Indonesia.

Laoly also affirmed that the visa policy has brought new hope to businesses and investors when investing in Indonesia, giving them peace of mind and certainty.

The Golden Visa is intended to be a tool for Indonesia to gain far-reaching benefits, such as higher capital gains, more job opportunities, technology transfer, and an improvement in the quality of the country’s human resources.

As of the date of its launch, the Golden Visa has been issued to 300 foreigners, bringing in investment inflows of IDR 2 trillion (approximately USD 123.5 million) to Indonesia.

“This number will definitely continue to rise,” said Immigration Bureau Director General Sirmi Karim.

Golden visa applicants must demonstrate their commitment to invest capital in Indonesia. They can do this by starting a company of a certain value, purchasing investment vehicles in the capital markets, buying real estate or depositing funds in a state-owned bank.

The type and value of investment required will be determined based on the profile of each applicant, whether they are applying as an individual or corporate investor, and whether they intend to establish a new company.

To obtain a five-year residence permit, individual investors who wish to establish a new company in Indonesia must invest at least US$2.5 million. Individual investors who wish to reside for ten years need to invest at least US$5 million in capital.

A parent company representative who wishes to obtain a five-year residence permit and establish a new company must invest $25 million, while a parent company representative who wishes to obtain a ten-year residence permit must invest $50 million.

An individual investor keen to apply for a golden visa to obtain a five-year residence permit, without the intention of setting up a new company, would need to invest $350,000 in capital. For someone seeking a ten-year residence permit, the value is determined to be twice as much.

Government commitment

This year, the Indonesian government aims to issue golden visas to up to 1,000 people.

However, it is important to note that while the visa system is a promising tool for Indonesia, it can also lead to economic and social problems if it lacks proper management and a strict issuance mechanism.

President Joko Widodo acknowledged that the golden visa may have some drawbacks and believed that Indonesia must be strict and cautious in providing and issuing visa facilities to foreign citizens.

“We cannot grant this facility to those who may pose a threat to our national security or do not bring any benefit to the country,” he stressed.

Jokowi confirmed that Indonesia will only provide visa facilities to reliable and high-quality travelers, adding that the government will evaluate the facility every three months.

According to Immigration Bureau chief Karim, the Indonesian government has established cooperation with Interpol and international anti-money laundering agencies to assess the qualifications of foreigners interested in obtaining golden visas.

In addition, the General Department of Immigration also cooperated with relevant ministries and agencies such as the Coordinating Ministry for Maritime Affairs and Investment, the Ministry of Investment, the Ministry of Finance, and the Financial Transaction Reports and Analysis Center (PPATK).

Karim said his office would not issue golden visas to anyone at random and would monitor visa holders during their stay in Indonesia.

He stressed that the Directorate General of Immigration will not hesitate to revoke a visa issued if the visa holder violates immigration rules or the government finds problems related to their investment.

“Our offices are staffed with intelligence and surveillance experts. After issuing the golden visa, we will monitor the holders,” Karim affirmed.

Such a working mechanism is expected to ensure that the issuance of golden visas will truly bring significant benefits to the country.

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