Golden Visa Program: A Game-Changer for Indonesia’s Immigration System?

In a groundbreaking development aimed at bolstering its economy, Indonesia has unveiled a new immigration option: the Golden Visa.

This initiative seeks to attract foreign individuals and corporations to invest in the country by offering extended residency to those who meet specific criteria. Indonesia’s adoption of the Golden Visa follows a trend seen in nations such as Singapore, Australia and the United States, which are all actively reshaping their visa systems to entice foreign talent, investors and skilled professionals.

The overarching objective is to stimulate economic growth, encourage innovation and bridge labour market gaps within the country.

Indonesian investment initiatives

Since taking office in 2014, Indonesia’s President Joko “Jokowi” Widodo has been credited with spearheading massive infrastructure development projects encompassing roads, railways, seaports, airports and power plants.

One of the hallmarks under Jokowi’s administration is the rate at which these infrastructure projects are being constructed, such as the Jakarta Mass Rapid Transit (MRT), Light Rail Transit (LRT), High Speed Railway, and more. These initiatives not only attract investments and generate employment during construction but are expected to yield long-term benefits for the country upon completion.

Many of these projects, categorized as National Strategic Projects, require foreign expertise and investments. To expedite their completion, the government granted special concessions, including permitting companies to bring in foreign expertise during the COVID-19 pandemic, when it suspended visa issuance to foreign nationals sponsored by other companies.

Enter: The Golden Visa

Given the government’s persistent drive to draw foreign investments, the introduction of the Golden Visa comes at an opportune moment. The swiftness with which this visa is being implemented, just three months after its initial announcement in June 2023, is noteworthy in a country where reforms traditionally take a substantial amount of time to come to fruition.

The Golden Visa offers a residence permit ranging from five to 10 years, depending on the correlated investment amount, making it an attractive option for foreign investors (as compared to a work permit, which is only valid for one year and must be renewed yearly).

Golden Visa holders also stand to enjoy other benefits, including priority screening at immigration entry points. “Once they arrive in Indonesia, they (Golden Visa holders) no longer need to apply for a limited stay permit (ITAS) at the immigration office,” notes Silmy Karim, the Director-General of Immigration. Further, Golden Visa holders will not need to apply for a separate work permit (known locally as “Notifikasi”).

Additionally, Indonesia's Golden Visa program presents an exciting opportunity for individual and corporate investors seeking to contribute to the nation's growth. There are plans to target highly knowledgeable/talented foreigners, including researchers from leading universities and artificial intelligence (AI) developers, which bodes well for the country’s technological advancement.

Notably, the first Golden Visa has already been issued to OpenAI (the company behind Chat GPT) CEO Sam Altman, signaling the broad reach and appeal of the Golden Visa program as strides towards technological innovation in Indonesia gain momentum.

Looking ahead

With roughly one year remaining in President Jokowi’s administration, the rather swift implementation of this visa is a promising sign for the industry. The potential expansion of this visa program to attract other forms of skilled talent and digital nomads remains an enticing prospect. This would allow more foreigners to take part in this program, without having to pass the financial barrier.

It remains unclear at this point if the Indonesian government will adopt any additional safeguards to anticipate any abuse of the program, such as tax evasion or money laundering.

The Fragomen team will continue to monitor and provide updates as the Indonesian authorities formalize the finer details regarding the Golden Visa.

Need to know more?

For questions on Indonesia’s Golden Visa, please contact Senior Manager Alfred Chong at [email protected] and Business Immigration Consultant Ferhan Siddiqi at [email protected].

This blog was published on 21 September 2023, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.