Indonesia has launched a new golden visa scheme to attract foreign investment into the country. The program has created much hype among international investors and notable figures. Golden Visas in Indonesia are visas granted to foreigners as a basis for a stay permit for 5 to 10 years to support the national economy. The minimum investment required is US$350,000 for private investors and US$2.5 million for companies.
The First Golden visa was granted to Samuel Altman is a global figure who is the CEO and Co-Founder of OpenAI, an artificial intelligence (AI) research and application company in the United States whose mission is to ensure that artificial intelligence benefits all humankind.
Why Indonesia?
- A Trillion dollar sound asian economy
- World’s largest tourism destination (eg. Bali)
- 100% corporate tax holiday for companies
- Asia trade hub connecting China and Australia
- “China+1” destination to supplement china operations (low costs)
- Vast network of Free trade and double tax agreements (DTAs)
- “Digital archipelago” For AI startups
Legal basis
Regulation of the Minister of Law and Human Rights Number 22 of 2023 on Visas and Stay Permits and Regulation of the Minister of Finance Number 82 of 2023, promulgated on 30 August 2023, became the basis of the Golden Visa policy. The new visa types are intended to attract eligible foreigners, including corporate and individual investors, to invest in Indonesia and boost the country’s economic development.
Golden visa holders are expected to enjoy some exclusive benefits from this type of visa. These include
- Prolonged stay duration (5 -10 years)
- Fast-track facility and priority immigration checks at airports,
- More prolonged stay permit, ease of entry and exit to Indonesia,
- No longer a need to apply for an ITAS (Temporary stay permit) at the immigration office.
Corporate Investors
5 Year Visa – establish a company in Indonesia must invest US$ 2,500,000 to $25 million
10 Year Visa – Establish a company investing US$ 5,000,000 (around Rp. 76 billion) to $50 million
Individual Investors
For private individual investors, who dont want to invest in a company, for a 5-year Golden Visa stay permit, applicants are required to place funds worth US$ 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).
Indonesian Citizenship
Article 9 of the Indonesian Citizenship Law outlines the administrative requirements of naturalization as follows: The applicant must be at least 18 years old or be married. The applicant must have resided in Indonesia for a minimum of five consecutive years or ten non-consecutive years at the time of application. The Indonesian government does not recognize dual citizenship, so a foreign partner cannot hold an Indonesian passport at the same time.
Photocredit: Pixabay
