25-7-2024 (JAKARTA) In a bid to lure foreign investment and bolster its economic prospects, Indonesia launched a long-term visa scheme on Thursday (July 25), offering foreign investors the opportunity to gain access to Southeast Asia’s largest economy. The move, announced by President Joko Widodo, aims to attract “good quality travelers” through the “Golden Visa” program.
Under the new scheme, foreign investors can obtain visas with varying durations and requirements based on their investment amounts. For individuals seeking to establish a company, an investment of US$2.5 million would grant a 5-year visa, while a US$5 million investment would secure a 10-year visa.
Alternatively, individuals not looking to set up a company can obtain a 5-year permit by placing US$350,000 and a 10-year permit by investing US$700,000. These funds can be utilized to purchase Indonesian government bonds, stocks in public companies, or placed as deposits.
For corporate investors, the requirements are more substantial. Companies must invest US$25 million to obtain 5-year visas for their directors and commissioners, while a US$50 million investment is necessary to secure 10-year visas.
However, the Indonesian government has sweetened the deal for those willing to invest in the country’s ambitious US$32 billion capital city project currently under construction in the jungles of Borneo island. In this case, a US$5 million investment would grant a 5-year visa, and a US$10 million investment would secure a 10-year visa, according to the immigration agency.
Several countries offer similar investment visa schemes, but others, including Canada, Britain, and Singapore, have scrapped such programs, concluding that they do not create jobs and could be a means to park speculative money.
President Jokowi, as he is commonly known, emphasized that the visa was intended to attract “good quality travelers.” He stated, “We’re launching the golden visa to make it easier for foreign nationals to invest in and contribute to Indonesia.”
Silmy Karim, the chief of the immigration agency, revealed that Indonesia had already granted golden visas to almost 300 applicants since it began testing the permits last year, attracting US$123 million in investment.
Additionally, Silmy disclosed that authorities are discussing ways to grant a special status for foreign nationals of Indonesian descent, modeled after the Overseas Citizenship of India (OCI). This status would allow foreigners of Indonesian ancestry to visit, work, and live in the country indefinitely. He added that this could be issued by October and is intended to respond to calls for Indonesia to allow its citizens to hold another passport.
