Indonesia launches golden visa with 10-year residency for investors

Indonesia has introduced a long-term visa scheme aimed at attracting rich, “good-quality” foreign investors, President Joko Widodo announced. The new Golden Visa offers a 10-year residency permit to those rich enough to invest up to US$10 million in Southeast Asia’s largest economy.

The scheme includes a five-year visa option, requiring an individual to set up a company worth US$2.5 million, while a 10-year visa needs a US$5 million investment. For those not establishing a company, a five-year permit can be obtained with a US$350,000 investment and a 10-year permit with US$700,000. These funds can be allocated towards Indonesian government bonds, public company stocks, or deposits.

Corporate investors are also catered for under this scheme. An investment of US$25 million allows companies to secure five-year visas for directors and commissioners, while a US$50 million investment grants a 10-year visa.

Incentives are further enhanced for investments in Indonesia’s new US$32 billion capital city, currently under construction in Borneo. Here, a US$5 million investment provides a five-year visa, and a US$10 million investment secures a 10-year visa, according to the immigration agency.

Several countries have similar investment visa schemes, but others like Canada, Britain, and Singapore have discontinued these programmes. Critics argue that they do not generate jobs and may be used to park speculative money.

President Joko Widodo, commonly known as Jokowi, stated that the Golden Visa aims to attract “good quality travellers.”

“We’re launching the golden visa to make it easier for foreign nationals to invest and contribute in Indonesia.”

Silmy Karim, chief of the immigration agency, revealed that nearly 300 applicants have been granted golden visas since the programme’s pilot phase last year, resulting in US$123 million in investments.

Silmy also mentioned ongoing discussions to grant special status to foreign nationals of Indonesian descent, similar to India’s Overseas Citizenship scheme. This status would allow individuals of Indonesian ancestry to visit, work, and live in Indonesia indefinitely, and could be issued by October.

“The plan is intended to respond to calls for Indonesia to allow its citizens to hold another passport.”