Indonesia Launches “Golden Visa” to Attract Foreign Investors with Long-Term Residency

by Nicholas Edwards · 25/07/2024

Indonesia launched a long-term visa scheme on Thursday, aimed at attracting foreign investors to Southeast Asia’s largest economy. President Joko Widodo, commonly known as Jokowi, announced that the “Golden Visa” offers up to a 10-year residency for investments of up to $10 million.

The five-year “Golden Visa” requires individual investors to establish a company worth $2.5 million, while a 10-year visa mandates a $5 million investment. For those not setting up a company, a five-year permit can be obtained with a $350,000 investment, and a 10-year permit requires $700,000. These investments can be directed into Indonesian government bonds, public company stocks, or placed as deposits.

Corporate investors can secure five-year visas for directors and commissioners with a $25 million investment, while a $50 million investment grants a 10-year visa. Special incentives are offered for investments in Indonesia’s new $32 billion capital city being constructed on Borneo island, with $5 million securing a five-year visa and $10 million a 10-year visa.

Several countries offer similar investment visa schemes, but others, such as Canada, Britain, and Singapore, have discontinued them due to concerns that they do not generate jobs and may serve as a means to park speculative money.

Jokowi emphasized that the visa is designed to attract “good quality travellers” who can invest and contribute to Indonesia. “We’re launching the golden visa to make it easier for foreign nationals to invest and contribute in Indonesia,” he said.

Silmy Karim, chief of the immigration agency, reported that Indonesia has granted golden visas to nearly 300 applicants since testing the permits last year, attracting $123 million in investments.

Silmy also mentioned ongoing discussions about granting special status to foreign nationals of Indonesian descent, similar to the Overseas Citizenship of India (OCI), which allows individuals of Indian ancestry to visit, work, and live in India indefinitely. This special status could be available by October, responding to calls for Indonesia to permit dual citizenship.

Indonesia’s “Golden Visa” scheme marks a significant step towards enhancing the country’s appeal to global investors and stimulating economic growth through substantial foreign investments.

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