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The Second Home Visa—A $130K Move?

January 26, 2023

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  • IndonesiaIndonesia

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Alfred Chong

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Alfred Chong

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Singapore, Singapore

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Alfred Chong

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By: Alizah Wahab, Ryaihanny Sahrom

In an effort to entice wealthy foreigners, professionals, investors and retirees to Indonesia, the country’s authorities issued the ‘Second Home Visa’ policy which took effect in December 2022. This visa allows individuals to stay, on a long-term basis, in Indonesia, so that they may invest and contribute to the economy. To date, details of the requirements are still scant, which may be why it has been confused with a Digital Nomad visa (which is still unavailable in Indonesia). At the moment, the Indonesian authorities have yet to formalize plans for a separate Digital Nomad visa.

What is the Second Home Visa?

Contrary to various media reports, the Second Home Visa does not confer work rights on the holder and is primarily targeted at attracting well-to-do foreigners who wish to live in Indonesia for five to 10 years. It is a visa that combines aspects of the investor, retirement, and other stay permit statuses. This visa is geared towards wealthy individuals with minimum savings of IDR 2 billion (approximately USD 130,000) to stay in Indonesia to invest and contribute to the economy. However, it does not allow the individual to pursue or gain employment.

The policy was officially announced by the Indonesian Minister of Law and Human Rights, Yasonna Laoly, on 20 December 2022. (Fittingly, it was announced in the Riau Islands, a province in Indonesia that is home to a significant number of expatriates.) 

Is the Second Home Visa a Digital Nomad Visa?

As remote working has become part of the “new normal,” particularly spurred by the COVID-19 pandemic, many countries had also started to launch Digital Nomad visas to entice remote workers. Indeed, many foreigners looked to Indonesia (and places like Bali in particular) in the hopes that it too would open up a digital nomad visa pathway. 

However, despite these pressures, remote working by foreigners still remains a gray area under the immigration law, which does not provide specific guidance for this type of situation. Foreigners looking to work in Indonesia should still obtain a valid work permit, with a local entity in Indonesia acting as a sponsor. The Second Home Visa unfortunately is not a substitute for work authorization, despite it making headlines as a so-called Digital Nomad visa.

It is worth noting that the Second Home Visa has no age restrictions, unlike the retirement visa, which is only applicable to those ages 55 and above. Further, in comparison to other visa categories, holders of the Second Home Visa do not need to extend their visas every one-two years. This may be attractive to wealthy investors looking to relocate on a long-term basis to popular retirement destinations such as Bali, amongst other locations in Indonesia. Furthermore, qualifying foreigners can also purchase properties and invest in Indonesia, also making the Second Home Visa an attractive status.

Further Considerations

Despite the positive aspects of the new policy, it has undeniably increased some anxieties among foreigners, especially, for example, when it comes to the proof of savings requirement. To meet the requirement, foreigners will need to transfer their funds to an Indonesian government-owned bank. The fact that the funds may not be withdrawn (or at least may need to remain in the bank account for a certain duration) has sparked reasonable concerns. The current regulation does not state how long the funds would have to remain in the account. Furthermore, not all retirees or foreigners may have such a large amount to transfer.

Looking Forward

The Second Home Visa seems to be a positive step, with Indonesia joining other countries in seeking to attract foreign nationals and talent through new long-term visa programs. This particular visa may prove particularly positive as Indonesia has been a growing economic powerhouse for foreign investors, with the largest economy in Southeast Asia.

The wealthy foreigners at which the Second Home Visa is targeted are free to enjoy the benefits of staying for an extended period in Indonesia and contribute to the economy. For popular and favorite retirement spots like Bali, foreigners who do not initially meet the criteria can still enter with other visa categories, such as Visa Exemption, Visa on Arrival and Single Entry Visa, albeit with shorter stay validity.

The Fragomen team will continue to monitor and provide updates as the Indonesian authorities further formalize details regarding this visa and the potential Digital Nomad visa.

Need to know more?

For any further information, please contact Business Immigration Consultants Alizah Wahab at [email protected] or Ryaihanny Sahrom at [email protected]. This blog was published on 26 January 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, Twitter, Facebook and Instagram. 

Country / Territory

  • IndonesiaIndonesia

Related contacts

alfred-chong

Alfred Chong

Senior Manager

Singapore, Singapore

Email

[email protected]

T:+65 6854 5185

Related offices

  • Singapore

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

alfred-chong

Alfred Chong

Senior Manager

Singapore, Singapore

Email

[email protected]

T:+65 6854 5185

Related offices

  • Singapore

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
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Related contacts

alfred-chong

Alfred Chong

Senior Manager

Singapore, Singapore

Email

[email protected]

T:+65 6854 5185

Related offices

  • Singapore

Share

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  • Facebook
  • LinkedIn

Share

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