Golden Visa Regulation – Regulation of the Minister of Law and Human Rights (Permenkumham) Number 22 of 2023 concerning Visas and Stay Permits and Regulation of the Minister of Finance Number 82 of 2023 promulgated on August 30, 2023 became the basis for the implementation of the Golden Visa policy. This visa classification is intended for qualified foreigners who will benefit the country’s economic development, one of which is investors, both corporations and individuals.
“Golden visa is a visa granted as the basis for granting a residence permit for a period of 5 (five) to 10 (ten) years in order to support the national economy,” said Director General of Immigration, Silmy Karim on Saturday (02/09/2023).
To be able to stay in Indonesia for 5 (five) years, foreign individual investors who will establish a company in Indonesia are required to invest US$ 2,500,000 (around Rp. 38 billion). Meanwhile, for a 10 (ten) year stay, the required investment value is US$ 5,000,000 (approximately IDR 76 billion).
Meanwhile, corporate investors who form a company in Indonesia and invest US$ 25,000,000 or around Rp 380 billion will receive a golden visa with a 5 (five) year stay for its directors and commissioners; for an investment value of US$ 50,000,000, a 10 (ten) year stay will be granted.
Different provisions apply to individual foreign investors who do not intend to establish a company in Indonesia. For a 5 (five) year golden visa, the applicant is required to place funds worth US$ 350,000 (around Rp.5.3 billion) which can be used to purchase Indonesian government bonds, shares of public companies or placement of savings/deposits; while for a 10 (ten) year golden visa the funds that must be placed are US$ 700,000 (around Rp.10.6 billion).
“Because we are targeting qualified travelers, the requirements are more weighty. The longer the stay in Indonesia, the higher the guarantee value, especially for investment activities which can be up to around Rp 760 billion,” he added.
Silmy further explained that the golden visa was a mandate from President Joko Widodo when he assumed his duties as Director General of Immigration so that it was made a priority program to be completed within 6 (six) months.
Silmy said that the 6 (six) months were used to review and formulate the Golden visa policy, including changes to regulations and preparing derivative rules.
“From changes in Government Regulations, Ministerial Regulations, to Director General Regulations. The formulation of the golden visa policy involves many ministries,” he said. Previously, Indonesian immigration regulations did not regulate visas with a 10 (ten) year stay permit.
Golden visa holders are expected to enjoy a number of exclusive benefits from this type of visa. Among them are a longer period of stay, ease of leaving and entering Indonesia, and efficiency because there is no need to apply for ITAS at the immigration office.
“Once in Indonesia, they (golden visa holders) no longer need to apply for a limited stay permit (ITAS) at the immigration office,” said Silmy.
Indonesia is not the first country to implement golden visa. Similar policies have been implemented in various developed countries, including the United States, Canada, United Arab Emirates, Ireland, Germany, New Zealand, Italy and Spain.
“Countries that have implemented the Golden Visa policy feel its positive impact. Denmark, for example, has become one of the leading countries in innovation. Then the United Arab Emirates became a favorite destination country for foreign investors. Hopefully, with this policy in the future Indonesia will also receive a similar impact. Moreover, our country has a myriad of potential to be managed and developed,” he concluded.