Indonesia has recently unveiled a new “golden visa” program designed to attract business investment and high-skilled professionals. The initiative aims to bolster the country’s economic growth by encouraging foreign investments and contributions. This blog delves into the details of the golden visa program, its implications for Indonesia’s economy, and its potential impact on digital nomads living in Bali.
Indonesian President Joko “Jokowi” Widodo announced the golden visa program on Thursday, emphasizing its role in facilitating foreign investments and contributions to the country. “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,” he stated during the launch.
The golden visa program offers various pathways for obtaining long-term residence permits, allowing investors and professionals with sought-after skills to stay in Indonesia for five or ten years. The program’s flexibility and numerous options make it accessible to a wide range of individuals and businesses.
Pathways to the Golden Visa
There are nine distinct ways to obtain a golden visa in Indonesia. For individual investors, one option is to invest $2.5 million in the country for a five-year visa or $5 million for a ten-year visa. Alternatively, travelers can secure a five-year visa by making a $350,000 deposit in a state-owned bank, with a ten-year stay costing a $700,000 deposit. These deposits can later be used to purchase government bonds or shares of companies listed on the Indonesia Stock Exchange.
Another type of golden visa allows individuals to stay for five years if they deposit $130,000 at a state-owned bank and buy an apartment valued at $1 million or more. This option provides a way for those interested in real estate investment to gain long-term residency.
For companies, the golden visa offers a pathway for directors and commissioners by committing to invest $25 million for a five-year stay and $50 million for a ten-year stay. This corporate-focused option aims to attract significant business investments and establish a stronger presence of foreign enterprises in Indonesia.
Early Success and Future Goals
Indonesia began testing the golden visa program last August, issuing permits to almost 300 applicants and attracting $123 million in investments, according to immigration chief Silmy Karim. The program’s early success has set an ambitious target for the future, with Indonesia aiming to issue 1,000 golden visas by the end of the year.
Karim highlighted the potential benefits of the new visa program, noting that it would open opportunities for foreign companies already operating in Indonesia. “For example, a mining company that would like to expand downstream would be able to earn golden visas for their foreign workers,” he explained.
The first golden visa issued under the new program went to OpenAI CEO Samuel Altman, who received a 10-year “global talent” permit. This high-profile issuance underscores the program’s focus on attracting top-tier talent and significant investors to Indonesia.
At the launch ceremony, the Immigration Authority also granted a global talent permit to Shin Tae-yong, a South Korean who coaches Indonesia’s national soccer team. These early recipients exemplify the diverse range of professionals and investors the golden visa program aims to attract.
Benefits and Perks of the Golden Visa
Golden visa holders in Indonesia enjoy several benefits and perks designed to make their stay more convenient and rewarding. These include fast-track and priority immigration lanes at airports, which help streamline the entry process for long-term residents. Additionally, the visa holders can enjoy a more stable and secure residency status, encouraging them to invest more confidently in the local economy.
The golden visa program is 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 popular vacation spots like Bali. By providing a legal pathway for long-term residency, the program aims to attract more productive and investment-oriented individuals.
Impact on Digital Nomads and Long-Stayers in Bali
The introduction of the golden visa program is likely to impact digital nomads and other long-stayers in Bali, a popular destination for remote workers. The Association of Indonesian Tour and Travel Agencies has raised concerns about digital nomads potentially breaking the law by using designated tourist accommodations as formal offices or conducting business activities that violate their permit conditions.
By offering a legal and structured pathway for long-term residency, the golden visa program seeks to address these concerns and ensure that foreign residents contribute positively to the local economy. However, the higher costs associated with the golden visa might deter some digital nomads who previously relied on tourist visas to live in Bali.
Regional Comparison and Economic Goals
Indonesia is not alone in offering golden visas to attract investments and stimulate economic growth. Other Southeast Asian countries, including Cambodia, Thailand, Malaysia, and Singapore, have similar programs in place. These countries have recognized the value of attracting foreign investments and high-skilled professionals to boost their economies.
Indonesia has set an ambitious goal of attracting $101.5 billion in domestic and foreign direct investment in 2024 to help achieve its GDP growth target of 5.2%. The golden visa program is a critical component of this strategy, aiming to create a more favorable investment climate and attract quality investors and professionals.
While the golden visa program presents numerous opportunities, it also comes with challenges and considerations. The high financial requirements may limit the pool of potential applicants, particularly among digital nomads and small-scale investors. Ensuring that the program attracts the right balance of high-quality investors and professionals without excluding those who can also contribute to the economy is essential.
Additionally, the long-term success of the golden visa program will depend on Indonesia’s ability to provide a conducive environment for businesses and professionals. This includes addressing bureaucratic hurdles, ensuring political stability, and offering attractive investment opportunities.
Indonesia’s launch of the golden visa program marks a significant step in attracting foreign investments and high-skilled professionals to the country. By offering various pathways to long-term residency and numerous benefits, the program aims to create a more favorable investment climate and stimulate economic growth.
The early success of the program, as demonstrated by the issuance of golden visas to notable individuals like OpenAI CEO Samuel Altman and South Korean soccer coach Shin Tae-yong, highlights its potential to attract top-tier talent and significant investors. However, the program’s higher costs may impact digital nomads and long-stayers in popular destinations like Bali, prompting a shift towards more investment-oriented residency.
As Indonesia aims to achieve its ambitious investment and economic growth targets, the golden visa program will play a crucial role in creating a more dynamic and productive economy. By attracting quality investors and professionals, Indonesia can position itself as a leading destination for foreign investments and talent in Southeast Asia.
let’s enjoy few years on earth with peace and happiness….✍🏼🙏