On July 25, President Joko Widodo (Jokowi) officially introduced the Golden Visa program, inviting international citizens to contribute to Indonesia’s growth through investment.

By launching this visa, Indonesia aims to attract high-quality travelers and position itself as an attractive investment destination and a viable second home for profitable investors, global talents, and prominent figures worldwide.

The Golden Visa is backed by the Minister of Law and Human Rights’ Regulation No. 22 of 2023, related to visas and residence permits, and the Finance Minister’s Regulation No. 82 of 2023 on non-state revenue connected to the visa.

The new program seeks to simplify the process for foreign nationals wishing to invest in Indonesia. Visa holders are granted various exclusive benefits, such as a residence permit for 5 to 10 years, priority immigration services at airports, and no requirement for a limited stay permit (ITAS).

The Golden Visa targets various groups, including individual investors, corporate investors, former Indonesian citizens and their descendants, talented global professionals, and influential international figures.

Indonesia’s Strategic Intent

Minister of Law and Human Rights Yasonna Laoly explained that the Golden Visa helps solidify Indonesia’s strategic standing internationally by encouraging more foreign contributions to the country’s development. He described the policy as adaptive and aimed at providing greater convenience for foreigners who wish to live in Indonesia.

Laoly emphasized that the visa offers businesspeople and investors more security and comfort when making investments in Indonesia.

The Golden Visa is intended to benefit Indonesia through increased capital gains, job creation, technology transfer, and improvements in national human resource quality.

Since the program’s introduction, 300 foreign nationals have been granted the visa, bringing in approximately Rp2 trillion (around US$123.5 million) in investments.

Visa Requirements and Investment Criteria

To qualify for a Golden Visa, applicants must commit to investing in Indonesia. This investment can take the form of establishing a company, purchasing capital market instruments, buying property, or depositing funds in state-owned banks.

Investment thresholds depend on the applicant’s profile. For individual investors planning to establish a business in Indonesia, a minimum investment of US$2.5 million is required for a five-year residence permit. To extend this to 10 years, the investment must increase to US$5 million.

Corporate representatives aiming to establish a company must invest US$25 million for a five-year permit and US$50 million for a decade-long permit.

Individual investors not wishing to start a new company can obtain a five-year permit with a capital investment of US$350,000, which is doubled for those applying for a 10-year permit.

Government’s Commitment to Rigorous Standards

The Indonesian government has set a goal to grant Golden Visas to 1,000 individuals this year. However, while the visa is seen as a promising tool for Indonesia’s development, there are concerns about potential economic and social challenges if not managed properly.

Acknowledging these risks, President Jokowi emphasized the importance of a selective process in granting the visa to foreign nationals. “We cannot afford to offer this facility to individuals who might pose a threat to our national security or bring no benefit to the country,” he stated.

He assured that the government would only provide the visa to trustworthy and valuable travelers, with assessments conducted every three months.

To ensure thorough vetting, Director General of Immigration Silmy Karim shared that the Indonesian government is collaborating with international organizations like Interpol and anti-money laundering agencies to evaluate applicants. Additionally, the Immigration Directorate General works alongside several ministries and agencies, including the Maritime Affairs and Investment Coordinating Ministry, the Ministry of Investment, the Ministry of Finance, and the Financial Transaction Reports and Analysis Center (PPATK).

Karim added that the government would closely monitor visa holders throughout their stay in Indonesia and would revoke the visa if there are violations of immigration regulations or issues with their investments. The Directorate General’s team includes experts in intelligence and surveillance, ensuring that the Golden Visa program delivers significant benefits for the nation.