Indonesia introduces Golden Visa Program to attract foreign investors

INDONESIA: The Indonesian government, under the leadership of the Director General of Immigration of the Ministry of Law and Human Rights (Kemenkumham), Silmy Karim, has announced the issuance of two new regulations regarding the Golden Visa program in August.

The Golden Visa program aims to attract foreign investors to develop businesses and invest in Indonesia, bolstering the country’s economic growth.

These regulations, officially named Regulation of the Minister of Law and Human Rights (Permenkumham) Number 22 of 2023 concerning Visas and Residence Permits, and Regulation of the Minister of Finance Number 82 of 2023 concerning Types and Tariffs of Non-Tax State Revenue (PNBP) Urgent Needs for Golden Visa Services at the Ministry of Law and Human Rights, were enacted on 30 August this year, serving as the foundation for the implementation of the Golden Visa policy.

This special classification of visa is intended for high-quality foreign individuals who will contribute to the country’s economic development, including investors, both corporate and individual.

Holders of the Golden Visa will enjoy distinct benefits compared to regular visa holders.

Sri Mulyani Indrawati, the Finance Minister of Indonesia.

New tariffs for Indonesia’s Golden Visa Program

Finance Minister Sri Mulyani Indrawati has established the tariff for obtaining the Golden Visa for foreign nationals entering and residing in Indonesia.

The tariffs, effective from 30 August, can be paid from either within or outside the country, as stated in Article 2, paragraph (1) of the regulation.

The Golden Visa service fees encompass various components, including Visa fees, Immigration permits, and other Immigration-related PNBP revenues.

All these revenues are required to be deposited into the state treasury, as stipulated in the regulation.

The tariff structure for Golden Visas includes:

1. For multiple-entry visit visas with a maximum duration of 5 years, applicants will pay Rp 10 million (approximately US$656), with a verification fee of Rp 1 million per applicant.
2. For multiple-entry visit visas with a maximum duration of 10 years, the fee is set at Rp 15 million, with a verification fee of Rp 2 million per applicant.
3. Limited stay visas will cost Rp 500,000 per applicant, with a verification fee of Rp 8 million per applicant.

Regarding Immigration permit service fees:

1. Limited stay permits with a maximum validity of 5 years will cost Rp 7 million per applicant, while those valid for 10 years will be charged Rp 12 million per applicant.
2. Permanent stay permits with a maximum validity of 5 years will be subject to a fee of Rp 7 million per applicant, Rp 12 million for 10 years, and Rp 15 million for an indefinite duration.
3. Re-entry permits, with a maximum validity of 5 years, will cost Rp 3.5 million per applicant, Rp 5 million for 10 years, and Rp 8 million for an indefinite duration.
4. Exit permits will have a fee of Rp 100,000 per applicant.
5. Reporting changes in civil and immigration status will incur a fee of Rp 500,000 per applicant.

Investment requirements: US$2.5 million for a five-year stay in Indonesia

Director General Silmy Karim further explained that to qualify for a five-year stay in Indonesia, individual foreign investors must invest approximately US$2.5 million (approximately Rp 38 billion), while a ten-year stay requires an investment of around US$5 million.

Corporate investors establishing companies in Indonesia and investing US$25 million will be eligible for a five-year Golden Visa for their directors and commissioners, and a ten-year visa for a US$50 million investment.

Different rules apply to individual foreign investors not intending to establish a company in Indonesia.

For a five-year Golden Visa, applicants must park funds worth $350,000 or approximately Rp5.3 billion, which can be used to purchase Indonesian government bonds, shares in public companies, or deposits.

For a ten-year Golden Visa, the required amount to be invested is $700,000, or approximately Rp10.6 billion.

Director General Silmy Karim explained, “As we target high-quality investors, the requirements are more substantial. The longer one stays in Indonesia, the higher the collateral, especially for investment activities that could amount to around Rp760 billion.”

“Exclusive benefits”

Silmy added that Golden Visa holders are expected to enjoy several exclusive benefits, including longer stays, ease of entry and exit in Indonesia, and efficiency because they no longer need to process limited stay permits (ITAS) at immigration offices.

“Once in Indonesia, Golden Visa holders no longer need to handle limited stay permits (ITAS) at immigration offices,” Silmy clarified.

Indonesia joins a list of countries, including the United States, Canada, the United Arab Emirates, Ireland, Germany, New Zealand, Italy, and Spain, that have already implemented the Golden Visa policy.

Director General Silmy Karim expressed hope that Indonesia will experience similar positive impacts, stating, “With this policy, we aim to attract high-quality individuals who can contribute to our nation’s development. Indonesia has tremendous potential waiting to be harnessed and cultivated.”