Key Takeaways:
- Indonesia introduced a Golden Visa program in August 2023 aiming to attract foreign investment and skilled professionals.
- Investment options include company establishment, government bonds, real estate, or new capital city projects, offering 5-10 year residencies.
- Golden Visa benefits: priority immigration lanes, expedited services at immigration offices, and priority from government agencies and ministries.
What is Indonesia’s Golden Visa Program?
Indonesia 🇮🇩 has introduced an ambitious “Golden Visa” program to attract foreign investors and skilled professionals, offering long-term residency permits of up to 10 years. This initiative, unveiled in August 2023, aims to boost foreign direct investment and stimulate economic growth.
What Are the Investment Options for Indonesia Golden Visa?
The Indonesia Golden Visa program offers several investment options tailored to different investor profiles:
Individual Investors
- 5-year visa: Requires establishing a company in Indonesia with a minimum value of $2.5 million.
- 10-year visa: Requires establishing a company with a minimum value of $5 million.
Corporate Investors
- 5-year visa for directors and commissioners: Requires a company investment of $25 million.
- 10-year visa for directors and commissioners: Requires a company investment of $50 million.
Alternative Investment Routes
- 5-year visa: $350,000 investment in Indonesian government bonds, public company stocks, or bank deposits.
- 10-year visa: $700,000 investment in the same options.
Real Estate Investment
- 5-year visa: $130,000 deposit in a state-owned bank plus purchase of an apartment worth at least $1 million.
New Capital City Investment
- 5-year visa: $5 million investment in Indonesia’s new capital city project in Borneo.
- 10-year visa: $10 million investment in the new capital city project.
What Benefits Do Golden Visa Holders Enjoy?
Golden Visa holders enjoy several benefits, significantly simplifying their integration into Indonesia’s economy:
- Priority immigration lanes: At designated airports.
- Expedited services: At immigration offices.
- Priority services: From related government agencies and ministries.
According to VisaVerge.com, these benefits aim to make Indonesia a more attractive destination for international investors.
How Will the Golden Visa Impact Indonesia’s Economy?
Indonesia has set an ambitious target of issuing 1,000 Golden Visas by the end of 2024. During its initial trial phase, the program has already generated significant interest, with approximately 300 permits issued, bringing in $123 million in investments.
Increased Foreign Direct Investment
The program is designed to help Indonesia secure $101.5 billion in domestic and foreign direct investment for 2024.
Economic Growth
By attracting high-net-worth individuals and corporations, Indonesia aims to support its GDP growth target of 5.2 percent.
Skilled Labor Influx
The program is expected to bring in professionals with specialized skills that can contribute to various sectors of the Indonesian economy.
Real Estate Market Boost
The option to invest in property is likely to stimulate the high-end real estate market, especially in popular areas like Bali.
What is the Impact on Indonesia’s Society?
New Capital City Development
Special provisions for investing in Indonesia’s new capital city project in Borneo aim to accelerate its development and attract international interest.
Reduction in Informal Long-term Stays
The program is expected to reduce the number of digital nomads and long-term tourists who previously used tourist visas for extended stays.
How Does Indonesia’s Golden Visa Compare to Other Countries?
Investment Requirements
Indonesia’s program has relatively high investment requirements compared to some European programs like Greece and Spain, but is lower than Malta’s, which requires a €750,000 capital contribution plus €700,000 in real estate.
- Greece: Minimum €250,000 real estate investment.
- Spain: €500,000 to €2 million, depending on investment type.
- Portugal: €280,000 to €500,000, depending on location and property type.
Visa Duration
Indonesia offers longer initial visa durations (5-10 years) compared to many European programs that typically start with 1-2 year residency permits, renewable for longer periods. This longer duration may be more attractive to investors seeking stability.
Path to Citizenship
Unlike some European programs which offer a clear path to citizenship after a certain period, Indonesia’s program focuses on long-term residency rather than citizenship.
What Are the Future Developments?
Indonesia is also considering introducing a special status for foreign nationals of Indonesian descent, similar to India’s Overseas Citizenship of India (OCI) program. This initiative, which could be launched as early as October 2024, aims to strengthen ties with the Indonesian diaspora and potentially allow for dual citizenship.
What Are the Potential Challenges?
Indonesia’s Golden Visa program may face scrutiny over potential risks like money laundering and tax evasion, similar to concerns raised in other countries with similar programs.
How Can You Apply for the Golden Visa?
The process to apply for Indonesia’s Golden Visa is relatively straightforward. Here are the steps:
- Invest Required Funds: Depending on the type of investment (business, real estate, bonds, etc.)
- Submit Documentation: Prepare and submit the necessary documentation to the Indonesian Immigration Office.
- Wait for Processing: Applications are usually processed within a few months.
- Receive Visa: Upon approval, the visa is granted for the specified duration.
External Resources
To get more official information and start the application process, you can visit the official Indonesian Immigration website: Directorate General of Immigration.
Conclusion
Indonesia’s Golden Visa program offers foreign investors an exciting opportunity to gain long-term residency while contributing to the nation’s economic growth. With various investment options, long visa durations, and numerous benefits, this program aims to make Indonesia a prime destination for international investors. As the program evolves, it will be interesting to see how it shapes Indonesia’s economic landscape and how it compares with similar programs in other regions.
Learn Today:
Glossary of Immigration Terms
- Golden Visa
A type of immigration program that grants long-term residency or citizenship to foreign nationals in exchange for substantial investment in the host country’s economy. Indonesia’s Golden Visa offers residency permits of up to 10 years to attract foreign investors and skilled professionals. - Foreign Direct Investment (FDI)
Investment made by a foreign individual or company in the business interests of another country, typically by either establishing business operations or acquiring business assets in the other country, including stakes in existing businesses. Indonesia’s Golden Visa aims to boost FDI to stimulate economic growth. - Residency Permit
An official document or card that allows a foreign national to reside in a country for a certain period of time, under specified conditions. Indonesia’s Golden Visa provides residency permits of up to 10 years for qualifying investments. - Skilled Professionals
Individuals with specialized knowledge or expertise in a particular field, often sought after by countries to enhance their economic and technological development. Part of Indonesia’s Golden Visa program targets skilled professionals to contribute to various sectors of its economy. - Investment Options
Various predetermined methods by which foreign nationals can invest in a host country’s economy to qualify for immigration benefits like residency permits. Indonesia’s Golden Visa program includes options like corporate investments, bonds, real estate, and projects in the new capital city.
This Article In A Nutshell:
Indonesia’s Golden Visa, launched in August 2023, offers 5-10 year residency to foreign investors and skilled professionals. Investment options include starting a company, purchasing property, or investing in bonds. This program aims to boost foreign direct investment and stimulate economic growth, attracting global interest to Indonesia’s thriving market.
— By VisaVerge.com
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