Quicksplained: What is Indonesia's Golden Visa that allows professionals to stay up to 10 years?

In an effort to draw skilled professionals, investors, and entrepreneurs from around the world, Indonesia has unveiled its new “Golden Visa” scheme that would allow individuals to stay in the country for five or 10 years.

While launching the program on Thursday, Indonesian President Joko “Jokowi” Widodo stated, “The golden visa will ease foreigners’ investments and contributions in Indonesia as well as attract more quality travelers who will invest and be productive while staying.”

This initiative is part of Indonesia’s broader strategy to attract significant investments as it targets $101.5 billion in domestic and foreign direct investment for 2024. This ambitious goal is designed to support the country’s aim of achieving a GDP growth rate of 5.2 per cent.

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Here’s a closer look at the key features of Indonesia’s Golden Visa and what potential applicants need to know.

How does a Golden Visa help Indonesia?

Indonesia has been testing the Golden Visa program for about a year now, during which it issued permits to almost 300 applicants and attracted $123 million in foreign investments, Silmy Karim, the head of Indonesia’s immigration agency, told Reuters.

Karim highlighted that the new visa would benefit foreign companies operating in the country, noting, “For example, a mining company that would like to expand downstream would be able to earn Golden Visas for their foreign workers.”

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Indonesia plans to issue an additional 1,000 Golden Visas before the year’s end, he added.

Among the notable recipients of the Golden Visa is OpenAI CEO Samuel Altman, who was awarded a 10-year “global talent” permit. Shin Tae-yong, a South Korean who coaches the country’s national soccer team was also given the visa on Thursday under the same category.

Further, the recipients of the Golden Visas will enjoy perks such as fast-track and priority immigration lanes at airports.

‘Good quality travellers’

President Jokowi further explained that the Golden Visa aims to attract “good quality travellers” and make it easier for them to “contribute to Indonesia”.

The new visas are also expected to reduce the number of digital nomads and other long-stayers who contribute little to the local economies while using tourist visas to live in vacation spots like Bali.

The Association of Indonesian Tour and Travel Agencies pointed out this issue about foreign business owners in Bali who might be using tourist visas for business activities, violating their permit conditions, Nikkei Asia reported citing local media.

By introducing golden visas, Indonesia comes in line with other Southeast Asia countries including Cambodia, Thailand, Malaysia, and Singapore which offer similar visas designed to attract investments and stimulate local economies.

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How to get golden visa?

There are nine pathways to obtaining a Golden Visa in Indonesia, as outlined by the country’s immigration agency.

For individuals interested in establishing a business, one option is to set up a company with an investment of $2.5 million for a five-year visa, or $5 million for a ten-year visa.

Alternatively, travellers who prefer not to start a business can secure a five-year visa by depositing $350,000 in a state-owned bank, or opt for a ten-year visa with a deposit of $700,000. These deposits can later be utilised to purchase government bonds or shares listed on the Indonesia Stock Exchange.

Another type of Golden Visa involves depositing $130,000 at a state-owned bank and buying an apartment valued at $1 million or more, which grants a five-year stay for individuals.

Corporate investors can also apply for Golden Visas for their directors and commissioners. A commitment of $25 million secures a five-year visa, while $50 million grants a ten-year visa.

For those investing in Indonesia’s new $32 billion capital city being constructed on Borneo Island, an investment of $5 million earns a five-year visa, and $10 million secures a ten-year visa, according to the immigration agency.

($1 is equal to Rs 83.72)

With input from agencies