Indonesia's new Golden Visa program attracts foreign investors
The Indonesian government has announced the launch of a permanent Golden Visa program aimed at attracting foreign investment and talent to the country. The program, which was initially launched as a pilot project, has now become a permanent initiative offering foreign nationals the opportunity to obtain a residence permit (VNJD) in Indonesia, especially on the island of Bali.
The program offers several investment options for individuals and companies. Individuals can invest US$350,000 in Indonesian securities or place the same amount in a deposit account. Alternatively, they can incorporate or purchase a company in Indonesia with a capital of at least $2.5 million. Another option involves investing $130,000 in a state-owned bank and purchasing real estate in Bali worth at least $1 million.
- For legal entities, the program involves opening a branch or representative office with an investment of $25 million or establishing a business with headquarters in the new capital of Nusantara with an investment of $5 million. A residence permit under the Golden Visa program can be granted for 5 years, and if the investment is doubled, the period can be extended to 10 years. It is important to note that family members (spouses, children and parents) can be included in the application without increasing the investment amount.
- The program aims to attract highly skilled IT and healthcare professionals as well as investors who can contribute to Indonesia's economic growth. The government expects to issue at least 1,000 Golden Visas by the end of 2024, which is projected to attract $123 million in investment since the program's launch in August 2023.
The program has undergone some changes since its launch, including adjusting the financial terms and conditions to make it more attractive to investors. The first Golden Visa recipient was Samuel Altman, CEO of OpenAI, who received a 10-year residency permit. The program officially became permanent, as announced by Indonesian President Joko Widodo on July 25, 2024. In the future, the government plans to tighten controls to enforce regulations on foreign nationals using tourist sites as offices or running businesses without proper authorization. These measures are expected to encourage more foreign nationals to opt for the Golden Visa program. The launch of the Golden Visa Program is an important step for Indonesia in attracting foreign investment and talent. It provides a unique opportunity for foreign nationals to not only invest in the country's economy, but also to obtain long-term residency. This can boost various sectors of the economy, especially technology and healthcare, as well as stimulate the growth of the real estate market, especially in Bali.
However, like any such program, it may face certain challenges. It is important for the Indonesian government to ensure that the process is transparent and the program is effectively managed to maximize its economic benefits and minimize potential risks associated with the influx of foreign capital and influence. Overall, the Golden Visa program is an ambitious initiative that has the potential to significantly impact Indonesia's economic development in the coming years. Its success will depend on the effectiveness of implementation and the ability to attract a target audience of highly skilled professionals and investors.
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In February 2024, Bali introduced a mandatory tourist tax for foreign visitors. However, according to local authorities, more than 60% of tourists have still not paid the levy. The island government is therefore considering introducing stricter measures to enforce the tax law.
The Indonesian government has announced the launch of a permanent Golden Visa program aimed at attracting foreign investment and talent to the country. The program, which was initially launched as a pilot project, has now become a permanent initiative offering foreign nationals the opportunity to obtain a residence permit (VNJD) in Indonesia, especially on the island of Bali.
