Indonesia Introduces Long-Term Golden Visa to Attract Foreign Investors

Indonesia has unveiled a groundbreaking long-term visa initiative designed to lure foreign investors and bolster Southeast Asia’s largest economy. The new ‘Golden Visa‘ scheme provides two main options, offering investors a five-year or ten-year residency based on their investment levels.

Visa Options and Investment Requirements

1. For Individual Investors

To qualify for a five-year golden visa, individuals must either establish a company valued at a minimum of $2.5 million or make a direct investment of $350,000 in Indonesian government bonds, public company stocks, or bank deposits. For a ten-year visa, the investment requirements double to $5 million and $700,000, respectively.

1. Five-Year Visa: To qualify, individual investors must establish a company with a minimum worth of $2.5 million.
2. Ten-Year Visa: This requires an investment of $5 million.
3. Alternative Investment Route: Investors who prefer not to establish a company can secure a five-year visa by investing $350,000 or a ten-year visa with a $700,000 investment. These funds can be allocated to Indonesian government bonds, and public company stocks, or placed as deposits.

2. For Corporate Investors

Companies looking to secure five-year visas for their directors and commissioners must invest a substantial $25 million. To extend this to a ten-year visa, the investment amount jumps to $50 million.

1. Five-Year Visa: Companies must invest $25 million to secure visas for their directors and commissioners.
2. Ten-Year Visa: This requires a $50 million investment.

Additionally, investments in Indonesia’s new capital city, currently under construction in Borneo, have reduced requirements:

1. Five-Year Visa: Requires a $5 million investment.
2. Ten-Year Visa: Requires a $10 million investment.

Also Read: Why Are Many Countries Ending Their Golden Visa Programs? Reasons and Impact

Comparative Analysis and Global Trends

While similar investment visa schemes are available worldwide, several countries, including Canada, Britain, and Singapore, have recently discontinued such programs, citing inefficacy in job creation and the potential for speculative misuse.

Government Vision and Objectives

President Joko Widodo, widely known as Jokowi, emphasized the strategic importance of the new visa scheme. “We’re launching the golden visa to make it easier for foreign nationals to invest and contribute to Indonesia,” he stated.

The initiative aims to attract “good quality travellers” who can significantly impact the nation’s economic landscape.

Indonesia’s Vision for the Future

Indonesian President Joko Widodo, popularly known as Jokowi, has emphasized the government’s goal of attracting high-quality investors through the Golden Visa program. “We aim to facilitate foreign nationals in contributing to Indonesia’s growth,” Jokowi stated.

Initial results appear promising. Since the program’s pilot phase launched last year, nearly 300 individuals have been granted Golden Visas, injecting $123 million into the Indonesian economy.

Expanding the Program

Indonesia’s immigration agency is also exploring the possibility of granting a special status to foreign nationals of Indonesian descent.

This initiative, modelled after India’s Overseas Citizenship of India (OCI) program, would allow these individuals to live, work, and travel freely in Indonesia. The new status is expected to be introduced as early as October.

Conclusion

Indonesia’s “Golden Visa” scheme represents a significant step in attracting foreign investment and stimulating economic growth. By offering long-term residency options and exploring dual citizenship opportunities, Indonesia aims to position itself as a favourable destination for global investors and its diaspora community.