Indonesia’s Innovative Visa Solution: Golden Visa
The Indonesian government has recently introduced a groundbreaking visa category known as the Golden Visa. This visa caters specifically to foreign nationals, including both individual investors and corporations, who eagerly seek to make substantial investments within the nation.
Emphasizing the Legal Framework
This groundbreaking visa issuance is supported by two robust legal frameworks, ratified on Wednesday, August 30, 2023. Firstly, it is governed by the Ministry of Law and Human Rights Regulation Number 22 of 2023, which pertains to Visas and Stay Permits. Secondly, it falls under the purview of the Ministry of Finance Regulation Number 82 of 2023, which outlines the Types and Tariffs of Non-Tax State Revenues (PNBP) that are urgently required to facilitate Golden Visa services at the Ministry of Law and Human Rights.
Crucial Facts and Regulations Unveiled
Now, let’s delve into essential facts and regulations concerning the Golden Visa:
Golden Visa for Foreign Investors
The Golden Visa primarily caters to foreign investors, whether as individual investors or corporate entities, who possess a keen interest in making substantial financial contributions within Indonesia. The issuance of strategically aims to stimulate foreign investments and foster economic growth within the country.
Residence Permits for 5-10 Years
One of the paramount benefits bestowed upon Golden Visa holders is an extended residency permit, spanning a duration of five to ten years. The precise length of this residency permit is contingent upon the magnitude of the investment made in the nation’s growth. Naturally, larger investments translate into lengthier residency permits.
According to Silmy, “Given our focus on high-quality entrants, the criteria are more stringent. The longer one resides in Indonesia, the higher the collateral value—especially for investments that can reach up to approximately Rp 760 billion.”
Let’s further elaborate on the regulations governing residence permits ranging from five to ten years:
5-Year Residence Permits
Those eligible for a five-year residence permit under the Golden Visa scheme include:
- Foreign individual investors intending to establish a company in Indonesia with an investment value of $2.5 million USD, roughly equivalent to Rp 38 billion.
- Corporate foreign investors planning to establish a company in Indonesia and invest $25 million USD, or approximately Rp 380 billion. This privilege extends to members of the board of commissioners and directors.
- Foreign individual investors who do not intend to establish a company in Indonesia but wish to invest $350,000 USD, or around Rp 5.3 billion. These investments can be directing towards government bonds, publicly traded company stocks, or savings and deposits.
10-Year Residence Permits
For those aiming for a ten-year residence permit through the Golden Visa program, here are the specific criteria:
- Foreign individual investors planning to establish a company in Indonesia with an investment value of $5 million USD, approximately Rp 76 billion.
- Corporate foreign investors looking to form a company in Indonesia and invest $50 million USD, roughly equivalent to Rp 760 billion. The Golden Visa benefits also extend to board members and directors.
- Foreign individual investors who do not intend to establish a company in Indonesia but are willing to invest $700,000 USD, or approximately Rp 10.6 billion. These investments can be allocating to government bonds, publicly traded company stocks, or savings and deposits.
President Jokowi’s Vision
Silmy reveals that the Golden Visa initiative stems from a directive issued by President Joko Widodo (Jokowi) during Silmy’s tenure as the Director-General of Immigration. Formulating the Golden Visa policy spanned six months and involved numerous ministries, encompassing research, policy formulation, policy amendments, and the development of implementing regulations.
This comprehensive process encompassed adjustments to government regulations, ministerial regulations, and directorate-general regulations, with multiple ministries actively engaged in policy formulation.
Indonesia Joins the Ranks
Indonesia joins the ranks of countries implementing the Golden Visa policy, following the lead of various advanced nations, including the United States, Canada, the United Arab Emirates, Ireland, Germany, New Zealand, Italy, and Spain.
Silmy asserts that the policy has yielded positive results in these countries. The expectation is that Indonesia will likewise experience similar benefits.
Exclusive Privileges for Golden Visa Holders
Golden Visa holders enjoy an array of exclusive privileges, including extended residence permits and streamlined entry and exit procedures when traveling to and from Indonesia. Furthermore, they benefit from enhanced efficiency, as they no longer need to initiate the Limited Stay Permit (ITAS) application process upon arrival at the Immigration Office.
Silmy concludes, “Upon arrival in Indonesia, Golden Visa holders are exempt from the Limited Stay Permit application process at the Immigration Office.”