Jakarta: Regulation of the Minister of Law and Human Rights Number 22 of 2023 on Visas and Stay Permits and Regulation of the Minister of Finance Number 82 of 2023, promulgated on 30 August 2023, became the basis of the Golden Visa policy. The new visa types are intended to attract eligible foreigners, including corporate and individual investors, to invest in Indonesia and boost the country's economic development.
"Golden Visas are visas granted to foreigners as a basis for a stay permit for 5 to 10 years to support the national economy," said Director General of Immigration Silmy Karim on Saturday (02/09/2023).
To be eligible to stay in Indonesia for 5 years, individual investors wishing to establish a company in Indonesia must invest US$ 2,500,000 (around Rp. 38 billion). Meanwhile, for a stay permit of 10 years, the required investment amount is US$ 5,000,000 (around Rp. 76 billion).
Directors and commissioners of Corporate investors establishing a company in Indonesia with an investment of US$ 25,000,000 or around Rp. 380 billion will obtain a golden visa with a stay of 5 years. For an investment value of US$ 50,000,000, the government will grant them a 10-year stay permit.
Different requirements apply to foreign investors who do not intend to establish a company in Indonesia. For a 5-year Golden Visa stay permit, applicants are required to place funds worth US$ 350,000 (around Rp. 5.3 billion), which can be used to buy Indonesian government bonds, public company shares or place savings/deposits in Indonesia, while for the 10 years Golden Visa stay permit the funds that must be placed are US$ 700,000 (around Rp. 10.6 billion).
"Because we are targeting quality investors, the requirements are more thorough. "The longer you stay in Indonesia, the higher the deposit amount required, especially for foreign investment, which can reach around Rp. 760 billion," he added.
Silmy further explained that the Golden Visa was an order from President Joko Widodo when he carried out his duties as Director General of Immigration, so Silmy prioritised the program to be finalised within six months.
Silmy said that the six months were used to review and formulate the Golden Visa policy, including adjusting and preparing supporting regulations.
"From modifications of Government and Ministerial Regulations to adaptations of Director General Regulations. The preparation of the Golden Visa policy involves many ministries," he said. Previously, Indonesian immigration regulations did not regulate visas with a stay permit of 10 years.
Golden visa holders are expected to enjoy some exclusive benefits from this type of visa. These include a more prolonged stay duration, ease of leaving and entering Indonesia, and efficiency because there is no longer a need to apply for an ITAS at the immigration office.
"Once they arrive in Indonesia, they (Golden Visa holders) no longer need to apply for a temporary stay permit (ITAS) at the immigration office," said Silmy.
Indonesia is one of many countries to grant a golden visa. Similar policies have previously been implemented in various developed countries, including the United States, Canada, United Arab Emirates, Ireland, Germany, New Zealand, Italy and Spain.
"Countries that have implemented the golden visa policy are getting a positive impact. Denmark, for example, has succeeded in becoming one of the countries at the forefront of innovation. Then, the United Arab Emirates became a favourite destination for foreign investors. Hopefully, with this policy, Indonesia will also receive a similar effect. Moreover, our country has a myriad of potentials to be fully managed and developed," he concluded.