Introduction
The Indonesian government has introduced a significant policy aimed at attracting high-quality foreign individuals who can contribute to the country’s economic development through the implementation of the “Golden Visa.” This policy is codified under the Ministry of Law and Human Rights Regulation (Permenkumham) No. 22 of 2023 concerning Visa and Residence Permits, and the Ministry of Finance Regulation (PMK) No. 82 of 2023, both enacted on August 30, 2023. Complementing this regulatory framework, President Joko Widodo officially launched the Golden Visa program during a grand event at The Ritz-Carlton, Mega Kuningan, Jakarta, on July 25, 2024. This article provides a comprehensive analysis of the Golden Visa policy, its classifications, requirements, and the exclusive benefits it offers to foreign investors, as well as insights from the launch event.
Golden Visa Classifications and Requirements
Individual Investors Establishing a Company in Indonesia
Foreign individual investors aiming to establish a company in Indonesia are required to make substantial investments to obtain a Golden Visa. The investment thresholds and corresponding visa durations are as follows:
- Five-year stay: An investment of USD 2,500,000 (approximately IDR 38 billion).
- Ten-year stay: An investment of USD 5,000,000 (approximately IDR 76 billion).
Corporate Investors
Corporate investors who establish a company in Indonesia must also meet significant investment requirements to qualify for the Golden Visa, which benefits their directors and commissioners:
- Five-year stay: An investment of USD 25,000,000 (approximately IDR 380 billion).
- Ten-year stay: An investment of USD 50,000,000 (approximately IDR 760 billion).
Individual Investors Not Establishing a Company
Foreign individual investors who do not intend to establish a company in Indonesia have different investment requirements:
- Five-year stay: An investment of USD 350,000 (approximately IDR 5.3 billion), which can be allocated towards purchasing Indonesian government bonds, public company shares, or placed in savings/deposits.
- Ten-year stay: An investment of USD 700,000 (approximately IDR 10.6 billion) under similar conditions.
Exclusive Benefits of the Golden Visa
Holders of the Golden Visa are entitled to several exclusive benefits designed to enhance their experience and operational efficiency in Indonesia:
- Extended Stay Duration: Golden Visa holders can reside in Indonesia for a longer period compared to other visa types.
- Ease of Entry and Exit: The policy facilitates smoother and more efficient entry and exit processes, reducing bureaucratic hurdles.
- Exemption from ITAS Requirement: Golden Visa holders are exempt from the need to apply for a Temporary Stay Permit (ITAS) at the immigration office, streamlining administrative processes and saving time.
Insights from the Grand Launching Event
President Joko Widodo emphasized the policy’s role in attracting “good quality travelers” who can invest and be productive while in Indonesia. The policy is selective, focusing on individuals who provide national benefits and ensure security.
Minister of Law and Human Rights, Yasonna H. Laoly, described the Golden Visa as a strategic immigration policy aimed at facilitating national welfare development and enhancing public service innovation.
Conclusion
The Golden Visa policy represents a strategic initiative by the Indonesian government to attract high-caliber foreign investors, both individuals and corporations, by offering them extended stay durations and a range of exclusive benefits. By setting clear investment thresholds and providing significant incentives, Indonesia aims to boost economic growth and development through increased foreign investment. Legal professionals and potential investors should carefully review the specific requirements and benefits outlined under Permenkumham No. 22 of 2023 and PMK No. 82 of 2023 to fully leverage the opportunities presented by this policy. The official launch of the Golden Visa by President Joko Widodo further underscores the government’s commitment to creating a conducive environment for international investors and talents to thrive in Indonesia.