14-5-2024 (JAKARTA) In a move aimed at enticing skilled overseas citizens to return and contribute to the country’s economic ambitions, the Indonesian government has proposed offering dual citizenship to former nationals. This announcement has been met with resounding enthusiasm from the diaspora, eager to leverage their expertise and reconnect with their roots. However, as analysts and officials weigh in, it becomes evident that the path to realizing this plan is shrouded in complexities that demand further clarification.
The proposal, unveiled in April by Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan, comes at a pivotal juncture when nations are vying to attract top talent. Indonesia, with its sights set on transitioning from an upper-middle-income economy to a high-income powerhouse, recognizes the invaluable contributions its global citizens can make towards achieving this ambitious goal.
President-elect Prabowo Subianto, who will assume office in October, has expressed his aspiration for an annual economic growth rate of 8 percent during his five-year term, a significant leap from the modest 5 percent expansion witnessed in the past two years.
Indonesia’s current laws do not recognize dual citizenship for adults, compelling those holding two passports to renounce one upon reaching adulthood. This policy has inadvertently fueled a brain drain, as skilled Indonesians have shifted their allegiance to the countries where they live and work, often lured by superior career prospects and higher remuneration. The allure of Singapore’s citizenship alone has drawn nearly 4,000 young Indonesians between 2019 and 2022, according to data from the country’s Immigration Office.
With an estimated six million people comprising the Indonesian diaspora, the potential impact of their return is immense. This group encompasses skilled and unskilled workers, as well as their families, some of whom have relinquished their Indonesian citizenship while others have retained it.
Sulistyawan Wibisono, president of the Indonesian Diaspora Network Global, hails the government’s plan as a “strategic step,” asserting that the expertise of former citizens could catalyze significant positive change. “If the Indonesian diaspora can enter Indonesia without many hurdles, they – with their expertise – will bring positive impact to the businesses,” remarked the 47-year-old Melbourne-based trademark attorney.
These professionals, currently scattered across various industries worldwide, could fill crucial talent gaps in fields such as information technology (IT), financial services, mining, and healthcare, Sulistyawan told The Straits Times.
Beyond their technical prowess, those granted dual citizenship may also introduce a fresh work culture into Indonesian workplaces, according to Jeffry Merril Liando, a 51-year-old IT specialist based in Melbourne. “They may break the (existing) culture of bureaucracy. As they have nothing to lose, they might be more brave and outspoken,” he explained, envisioning a transformative impact on the nation’s work ethic and attitudes.
For Liando, who renounced his Indonesian citizenship in 2015 to become a New Zealander, along with his wife and two teenage children, the prospect of returning to Indonesia to contribute to his birth country’s development is tantalizing – a dream he hopes to extend to his offspring through the proposed dual citizenship scheme.
The allure of dual citizenship resonates strongly with Indonesian expatriates like Restu Satriotomo, a 41-year-old bank executive who has spent 13 years working in Belgium. While he plans to apply for Belgian citizenship to enhance his professional mobility across Europe, he remains hesitant to relinquish his Indonesian roots, harboring aspirations of retiring in his homeland one day.
“If, let’s say, one day I can get a good (job) offer in Indonesia and be appreciated as an international expert, I can use my expertise, knowledge of the Indonesian language and culture to bring added value to Indonesian companies, allowing them to gain a higher competitive edge,” Satriotomo enthused.
However, as the enthusiasm swells, the dearth of concrete details surrounding the implementation of this plan has cast a shadow of uncertainty. Luhut’s announcement, made ahead of a meeting between President Joko Widodo and Microsoft CEO Satya Nadella – whose company has pledged a $1.7 billion investment in the country – offered scant information on the government’s strategy for navigating the legislative and political hurdles that lie ahead.
Moreover, the incoming administration’s stance on the issue remains ambiguous, as President-elect Prabowo has yet to publicly address the dual citizenship proposal.
During Widodo’s nearly decade-long tenure, attempts to accommodate dual citizenship have surfaced sporadically, only to be thwarted by parliamentary resistance over national security concerns. In 2016, the government’s intention to amend the Citizenship Law to include a dual citizenship provision was swiftly rebuffed by lawmakers, who feared it could precipitate a rise in crimes such as terrorism and drug trafficking.
Acknowledging the intricacies of the process, Silmy Karim, the Indonesian director-general for immigration, affirmed to The Straits Times, “Changing the laws is not easy, and the deliberation of its amendments until the new laws are passed takes time.”
Dr. Siwage Dharma Negara, a senior fellow at the ISEAS – Yusof Ishak Institute, questions the urgency of recognizing dual citizenship, suggesting alternative means of attracting Indonesian talent. “Can’t they be lured by other means? Why not start a pilot project by fulfilling what is needed by the desired workers?” he posited.
Echoing the sentiment, Bhima Yudhistira, executive director of the Centre for Economic and Law Studies, argues that dual citizenship alone may not sufficiently entice the Indonesian diaspora due to the significant salary gap between local and overseas companies. “Jobs in the services sector that offer high salaries, especially IT, do not need dual citizenship and permanent stay (in Indonesia),” he said, adding that such hires could work on projects in Indonesia while remaining based abroad.
Bhima suggests that the dual citizenship scheme may primarily appeal to the older segment of the diaspora seeking to retire or vacation in Indonesia, cautioning against potential “adverse selection” if the target demographic is productive-aged workers.
Nevertheless, for some skilled Indonesian expatriates, the lower cost of living in their homeland could counterbalance the allure of high salaries abroad. Imam Widodo, a 25-year-old machine learning engineer at Apple in Silicon Valley who relinquished his Indonesian citizenship at 18 to become an American, believes the proposal could “entice more of the Indonesian diaspora to live and work in Indonesia with the appeal of a very high quality of life.”
