The Indonesian Golden Visa program stands out as a beacon of opportunity. It becomes the country’s answer to reshape in response to economic shifts and technological advancements as the world continues.
The new visa program opens doors to investors and expatriates alike. The program invites them to explore the countless benefits and opportunities that await Indonesia’s dynamic business landscape. Within this guide, you’ll delve into the intricacies of this new visa program.
Indonesia releases Golden Visa for foreign investors
Indonesia has just introduced a Golden Visa program. The program is designed for high-quality foreign individuals to invest in the country’s developing economy. Therefore, it is open to corporate and individual investors.
The foundation of this program lies in two important government regulations: the Ministry of Law and Human Rights (Permenkumham), Number 22 of 2023, and the Ministry of Finance, Number 82 of 2023. These regulations officially came into effect on August 30, 2023.
This new visa program allows foreign citizens to live in Indonesia by making substantial investments. While investment is a crucial factor, it’s not the only requirement. Applicants may also need to make a specific monetary payment as part of the application process.
This program aims to attract individuals who can contribute to Indonesia’s growth and development.
Read more: How to apply for an Indonesian tourist visa
Golden Visa in other countries
Indonesia is joining the ranks of several countries by introducing the Golden Visa program. This policy has already been implemented in numerous developed nations, including the United States, Canada, the United Arab Emirates, Ireland, Germany, New Zealand, Italy, and Spain.
Adopting this new visa policy has yielded positive outcomes in these countries. For instance, Denmark has witnessed remarkable advancements in innovation, while the United Arab Emirates has emerged as a favored destination for foreign investors.
The promising effects
In 2018, Transparency International embarked on a comprehensive study to examine the impact of Golden Visa programs within the European Union member states.
From 2008 to 2018, the European Union successfully drew an impressive sum of approximately EUR 25 billion (equivalent to IDR 407 trillion) in Foreign Direct Investment (FDI), all of which was attributed to the strategic implementation and allure of the programs across its member nations.
This substantial influx of investment capital played a pivotal role in bolstering the economic landscapes of these countries, creating opportunities, fostering growth, and showcasing the significance of such programs on an international scale.
The benefits of the Indonesian Golden Visa
The Golden Visa program in Indonesia introduces a significant change in immigration regulations. It offers residency permits lasting 5 to 10 years, a departure from the previous rules that did not include 10-year residency visas.
Golden Visa holders can look forward to exclusive benefits, such as:
- Extended stay durations,
- Simplified entry and exit processes,
- Increased efficiency and eliminated the need for ITAS (Temporary Stay Permit) applications at immigration offices.
In addition to investor-based Golden Visas, other categories are available, including one designed for internationally recognized individuals capable of contributing to Indonesia’s growth. Under this category, eligible foreign nationals are proposed and recommended by a national-level government institution to obtain this visa.
A notable recipient of the new visa program is Samuel Altman, the Chief Executive Officer (CEO) of OpenAI, who became the first foreign national to receive this honor in Indonesia following its enactment in late August.
Altman received the visa under the “World Figures” sub-category, entitling him to a 10-year residency.
The requirements for the Golden Visa application
The application requirements change depending on the advantages it gives you, such as:
Starting your own company in Indonesia
- If you invest a minimum of USD 2.5 million, you are eligible for the 5-year Golden Visa.
- If you invest USD 5 million or more, you qualify for the 10-year Golden Visa.
Directors or commissioners of a large-sized company who want to live in Indonesia
- If the company invests a minimum of USD 25 million, you are eligible for the 5-year Golden Visa.
- If the company invests USD 50 million or more, you qualify for the 10-year Golden Visa.
Individual foreign investors who do not intend to establish a company in Indonesia
- If you allocate funds worth USD 350,000, you are eligible for the 5-year Golden Visa.
- If you allocate funds worth USD 700,000 or more, you qualify for the 10-year Golden Visa.
These funds can be utilized to purchase Indonesian government bonds and publicly listed company shares or placed in savings or deposits.
Guide to Doing Business in Jakarta
How to obtain an Indonesian Golden Visa
The Golden Visa reflects Indonesia’s dedication to attracting investments for economic growth. Indonesia presents exciting business opportunities with abundant resources, a thriving digital market, and stunning tourist spots.
If you’re interested in this new visa program, our consultants can assist you through the application process. InCorp Indonesia also provides other visa services like Investor KITAS and Business Visas to make your business in Indonesia smoother. Contact our consultants by clicking the button below.
Daris Salam
COO Indonesia at InCorp Indonesia
With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.
Frequently Asked Questions
- Conduct a general shareholder meeting to approve the liquidation and the liquidator’s nomination
- Notify the Ministry of Law and Human Rights as well as the creditors of the liquidation and the distribution plan for the assets by newspaper notice
- All business licenses and tax numbers should be canceled or revoked; the tax office will conduct a tax audit to revoke the tax number
- Make sure creditors are paid and that any liquidation funds are distributed to shareholders (if any)
- Conduct a general meeting of shareholders to approve the liquidator’s discharge and acquittal
- Notify the Ministry of Law and Human Rights of the liquidation’s outcome. After receiving the notification, the Ministry of Law and Human Rights will deregister the company’s status as a legal entity and remove its name from the Company Registry
- Release the liquidation’s outcome in a newspaper
Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee will bear a certain percentage, respectively. Another obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us to get information on your specific field.
In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment.
The Indonesian Halal bodies recognize some of the international halal certifications. Nevertheless, since there might be differences in the standards used by each certification body, it is still necessary to process Halal Certification in Indonesia.
The procedures for (voluntarily) liquidation typically involve the following steps:
Completing the liquidation process can take around two years.
