A Southeast Asian country officially applies the Golden Visa policy. (Source: Essential Business)

Indonesian President Joko Widodo (Jokowi) recently officially launched the Golden Visa to welcome international citizens to Indonesia through capital investment to build the country.

As of the launch date, Golden Visas have been issued to 300 foreign nationals, bringing investment inflows worth Rp 2,000 billion (about US$123.5 million) to Indonesia.

Legally, the Golden Visa policy is implemented under Regulation No. 22/2023 of the Minister of Human Rights on visa and residence permit issues; Regulation No. 82/2023 of the Minister of Finance on non-state revenue related to Golden Visa.

With its preferential Golden Visa policies, Indonesia aims to provide a higher level of convenience for foreign nationals looking to invest in the Southeast Asian country.

Visa holders enjoy a range of exclusive benefits, including a residence permit valid for five to 10 years, priority immigration services at international airports and no need for a Limited Stay Authorisation (ITAS). This visa facility is aimed at a number of groups of people, such as individual investors, corporate investors, former Indonesian citizens and their descendants, globally talented individuals and world-renowned personalities.

Law and Human Rights Minister Yasonna Laoly said the Golden Visa mechanism helps Indonesia strengthen its strategic position in the eyes of the international community, as the policy enables more people to contribute to the country's development.

Mr. Laoly emphasized that the Golden Visa is a highly adaptive policy aimed at facilitating foreigners who want to reside and invest in Indonesia for a long time. The visa mechanism gives businesses and investors new hope for comfort and certainty when investing in Indonesia. According to Mr. Laoly, the Golden Visa is designed as a tool for Indonesia to gain far-reaching benefits, such as higher capital growth, more job opportunities, technology transfer and improving the quality of national human resources.

“The numbers of foreigners applying for Golden Visas will definitely continue to increase in the future,” said Immigration Director General Silmy Karim.

Golden Visa applicants must commit to investing capital in Indonesia. They can develop a company of a certain value, purchase investment instruments on the capital market, purchase real estate or deposit money in state-owned banks. The type and value of the required investment is determined based on each applicant’s profile, whether they are registering as an individual investor or a business, and whether they are setting up a new company.

To get a five-year residency permit, an individual investor who wants to set up a new company in Indonesia must invest a minimum of $2.5 million. Those who want to stay for a decade need to put up at least $5 million.

A representative of a parent company who wants to obtain a 5-year residence permit and develop a new company is required to invest 25 million USD, while those who want a 10-year residence permit need to invest 50 million USD. An individual investor who wants to apply for a Golden Visa to obtain a 5-year residence permit without the intention of establishing a new company needs to put up 350,000 USD in capital. The value is determined to double for those who want a 10-year permit.

The Indonesian government aims to issue Golden Visas to up to 1,000 people. However, it is worth noting that while the visa scheme is a promising tool for Indonesia, it can also lead to economic and social problems if not properly managed and the visa scheme is not rigorous.

Acknowledging the potential limitations of the Golden Visa, President Jokowi said it is important for Indonesia to be highly selective in providing and granting convenient visas to foreign citizens.

“We will not issue Golden Visas to those who may pose a threat to our national security or those who do not bring any benefits to the country,” Jokowi stressed.

According to Mr. Jokowi, Indonesia will only provide Golden Visas to trustworthy and high-quality tourists, and the government will evaluate this facility every three months.

According to Immigration Director General Karim, the Indonesian government has increased cooperation with Interpol and international anti-money laundering agencies to assess the eligibility of foreign nationals who wish to obtain Golden Visas. Furthermore, the Directorate General of Immigration has cooperated with relevant ministries and agencies such as the Coordinating Ministry of Investment and Maritime Affairs, the Ministry of Investment, the Ministry of Finance, and the Financial Transactions Reporting and Analysis Center (PPATK).

The Immigration Department will not hesitate to revoke a visa granted if the holder violates immigration regulations or if the government discovers problems related to their investment.

Intelligence and surveillance experts within the Office will monitor the activities of individuals granted Golden Visas. Such a working mechanism is expected to help ensure that the issuance of Golden Visas will truly bring significant benefits to the country.